Heritage Commerce (HTBK) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 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	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		43,279,185
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 40,831	$ 31,681
Other investments and interest-bearing deposits in other financial institutions	340,198	284,541
Total cash and cash equivalents	381,029	316,222
Securities available-for-sale, at fair value	319,071	391,852
Securities held-to-maturity, at amortized cost (fair value of $359,698 at September 30, 2018 and $394,292 at December 31, 2017)	375,732	398,341
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	6,344	3,419
Loans, net of deferred fees	1,899,387	1,582,667
Allowance for loan losses	(27,426)	(19,658)
Loans, net	1,871,961	1,563,009
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	25,210	17,911
Company-owned life insurance	61,630	60,814
Premises and equipment, net	7,246	7,353
Goodwill	83,752	45,664
Other intangible assets	12,614	5,589
Accrued interest receivable and other assets	48,321	33,278
Total assets	3,192,910	2,843,452
Deposits:
Demand, noninterest-bearing	1,081,846	989,753
Demand, interest-bearing	670,624	601,929
Savings and money market	828,297	684,131
Time deposits - under $250	68,194	51,710
Time deposits - $250 and over	84,763	138,634
CDARS - interest-bearing demand, money market and time deposits	11,575	16,832
Total deposits	2,745,299	2,482,989
Subordinated debt, net of issuance costs	39,322	39,183
Accrued interest payable and other liabilities	54,723	50,041
Total liabilities	2,839,344	2,572,213
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at September 30, 2018 and December 31, 2017
Common stock, no par value; 60,000,000 shares authorized; 43,271,676 shares issued and outstanding at September 30, 2018 and 38,200,883 shares issued and outstanding at December 31, 2017	300,208	218,355
Retained earnings	70,531	62,136
Accumulated other comprehensive loss	(17,173)	(9,252)
Total shareholders' equity	353,566	271,239
Total liabilities and shareholders' equity	$ 3,192,910	$ 2,843,452

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Securities held-to-maturity
Securities held-to-maturity, fair value (in dollars)	$ 359,698	$ 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	43,271,676	38,200,883
Common stock, shares outstanding	43,271,676	38,200,883

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest income:
Loans, including fees	$ 28,632	$ 22,507	$ 77,271	$ 64,112
Securities, taxable	3,483	3,596	11,112	9,916
Securities, exempt from Federal tax	555	563	1,675	1,694
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	1,940	1,289	4,409	3,037
Total interest income	34,610	27,955	94,467	78,759
Interest expense:
Deposits	1,575	1,051	3,772	2,867
Subordinated debt	583	583	1,731	811
Short-term borrowings	1		1	1
Total interest expense	2,159	1,634	5,504	3,679
Net interest income before provision for loan losses	32,451	26,321	88,963	75,080
Provision (credit) for loan losses	(425)	115	7,279	390
Net interest income after provision for loan losses	32,876	26,206	81,684	74,690
Noninterest income:
Service charges and fees on deposit accounts	1,107	869	2,981	2,410
Gain on sales of SBA loans	236	147	551	635
Increase in cash surrender value of life insurance	216	417	816	1,259
Servicing income	163	246	533	736
Gain (loss) on sales of securities			266	(6)
Other	484	781	2,034	2,014
Total noninterest income	2,206	2,460	7,181	7,048
Noninterest expense:
Salaries and employee benefits	10,719	9,071	35,302	27,766
Occupancy and equipment	1,559	1,142	3,927	3,426
Professional fees	721	695	1,116	2,439
Other	4,729	3,926	18,235	11,785
Total noninterest expense	17,728	14,834	58,580	45,416
Income before income taxes	17,354	13,832	30,285	36,322
Income tax expense	4,979	5,249	8,186	13,752
Net income	$ 12,375	$ 8,583	$ 22,099	$ 22,570
Earnings per common share:
Basic (in dollars per share)	$ 0.29	$ 0.22	$ 0.54	$ 0.59
Diluted (in dollars per share)	$ 0.28	$ 0.22	$ 0.53	$ 0.59

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 12,375	$ 8,583	$ 22,099	$ 22,570
Other comprehensive income:
Change in net unrealized holding (losses) gains on available-for-sale securities and I/O strips	(1,880)	539	(11,009)	2,975
Deferred income taxes	545	(227)	3,192	(1,250)
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity	(11)	(12)	(33)	(38)
Deferred income taxes	3	5	9	16
Reclassification adjustment for losses (gains) realized in income			(266)	6
Deferred income taxes			79	(2)
Change in unrealized (losses) gains on securities and I/O strips, net of deferred income taxes	(1,343)	305	(8,028)	1,707
Change in net pension and other benefit plan liability adjustment	51	39	152	116
Deferred income taxes	(15)	(17)	(45)	(49)
Change in pension and other benefit plan liability, net of deferred income taxes	36	22	107	67
Other comprehensive (loss) income	(1,307)	327	(7,921)	1,774
Total comprehensive income	$ 11,068	$ 8,910	$ 14,178	$ 24,344

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common StockTri Valley Bank	Common StockUnited American Bank	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income / (Loss)	Tri Valley Bank	United American Bank	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				22,570				22,570
Other comprehensive income (loss)					1,774			1,774
Issuance of restricted stock awards, net (in shares)			64,136
Amortization of restricted stock awards, net of forfeitures and taxes			$ 678					678
Cash dividend declared				(11,418)				(11,418)
Stock option expense, net of forfeitures and taxes			639					639
Stock options exercised			$ 1,352					1,352
Stock options exercised (in shares)			193,863
Balance at Sep. 30, 2017			$ 217,906	63,679	(6,140)			275,445
Balance (in shares) at Sep. 30, 2017			38,199,006
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				22,099				22,099
Other comprehensive income (loss)					(7,921)			(7,921)
Issuance of common shares to acquire Business	$ 30,725	$ 47,280				$ 30,725	$ 47,280
Issuance of common shares to acquire Business (in shares)	1,889,613	2,826,032
Issuance of restricted stock awards, net (in shares)			95,378
Amortization of restricted stock awards, net of forfeitures and taxes			$ 814					814
Cash dividend declared				(13,704)				(13,704)
Stock option expense, net of forfeitures and taxes			535					535
Stock options exercised			$ 2,499					2,499
Stock options exercised (in shares)			259,770
Balance at Sep. 30, 2018			$ 300,208	$ 70,531	$ (17,173)			$ 353,566
Balance (in shares) at Sep. 30, 2018			43,271,676

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.33	$ 0.30

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 22,099	$ 22,570
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	3,093	3,218
(Gain) loss on sale of securities available-for-sale	(266)	6
Gain on sale of SBA loans	(551)	(635)
Proceeds from sale of SBA loans originated for sale	9,315	8,304
SBA loans originated for sale	(11,689)	(8,957)
Provision for loan losses	7,279	390
Increase in cash surrender value of life insurance	(816)	(1,259)
Depreciation and amortization	566	586
Amortization of other intangible assets	1,336	1,083
Stock option expense, net	535	639
Amortization of restricted stock awards, net	814	678
Amortization of subordinated debt issuance costs	139	64
Effect of changes in:
Accrued interest receivable and other assets	(19)	2,428
Accrued interest payable and other liabilities	1,723	(12)
Net cash provided by operating activities	33,558	29,103
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale	(15,193)	(123,561)
Purchase of securities held-to-maturity	(16,906)	(89,470)
Maturities/paydowns/calls of securities available-for-sale	44,832	41,463
Maturities/paydowns/calls of securities held-to-maturity	38,091	32,502
Proceeds from sales of securities available-for-sale	94,291	6,536
Net change in loans	20,215	(60,683)
Changes in Federal Home Loan Bank stock and other investments	(4,478)	(2,709)
Purchase of premises and equipment	(108)	(635)
Cash received in bank acquisition, net of cash paid	36,028
Net cash provided by (used in) investing activities	196,772	(196,557)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(154,318)	218,464
Issuance of subordinated debt, net of issuance costs		39,073
Exercise of stock options	2,499	1,352
Payment of cash dividends	(13,704)	(11,418)
Net cash (used in) provided by financing activities	(165,523)	247,471
Net increase in cash and cash equivalents	64,807	80,017
Cash and cash equivalents, beginning of period	316,222	266,103
Cash and cash equivalents, end of period	381,029	346,120
Supplemental disclosures of cash flow information:
Interest paid	4,728	2,912
Income taxes paid	$ 8,671	11,731
Supplemental schedule of non-cash investing activity:
Transfer of loans held-for-sale to loan portfolio		$ 2,391

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS - Summary of Assets Acquired and Liabilities Assumed Through Acquisition (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Summary of assets acquired and liabilities assumed through acquisition:
Cash and cash equivalents, net of cash paid	$ 36,028
Securities available-for-sale	63,723
Net loans	336,446
Premises and equipment, net	350
Goodwill	38,088
Other intangible assets	8,361
Other assets, net	14,736
Deposits	(416,628)
Other borrowings	(62)
Other liabilities	$ (3,037)

CONSOLIDATED STATEMENTS OF CA_3

CONSOLIDATED STATEMENTS OF CASH FLOWS - Common Stock Issued to Acquire Tri-Valley and United American Bank (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Supplemental schedule of non-cash investing activity:
Common stock issued to acquire Tri-Valley and United American Bank	$ 78,005

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 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, San Benito, and San Mateo 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 and nine months ended September 30, 2018 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2018. Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Goodwill and Other Intangible Assets Goodwill resulted from the acquisition of Tri-Valley Bank (“Tri-Valley”) on April 6, 2018 and United American Bank (“United American”) on May 4, 2018, and from acquisitions in prior years. Goodwill represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment is recognized in the period identified. Other intangible assets consist of core deposit intangible assets and a below market value lease intangible asset, arising from the United American and Tri-Valley acquisitions. They are initially measured at fair value and then are amortized over their estimated useful lives. The core deposit intangible assets from the acquisitions of United American and Tri-Valley are being amortized on an accelerated method over ten years. The below market value lease intangible assets are being amortized on the straight line method over three years for United American and eleven years for Tri-Valley. 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 15 – 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 regarding the valuation of the loan portfolio. 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 has assessed our data needs and is in the process of implementing a system to comply with 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 and a charge to equity 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	9 Months Ended
	Sep. 30, 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. There were 512,261 and 227,409 stock options for the three months ended September 30, 2018 and 2017, and 505,686 and 140,659 for the nine months ended September 30, 2018 and 2017, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per share. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands, except per share amounts) Net income $ 12,375 $ 8,583 $ 22,099 $ 22,570 Weighted average common shares outstanding for basic earnings per common share 43,230,016 38,152,633 41,132,043 38,060,224 Dilutive effect of stock options outstanding, using the treasury stock method 501,354 428,665 551,001 504,910 Shares used in computing diluted earnings per common share 43,731,370 38,581,298 41,683,044 38,565,134 Basic earnings per share $ 0.29 $ 0.22 $ $ 0.59 Diluted earnings per share $ 0.28 $ 0.22 $ $ 0.59

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (''AOCI'')	9 Months Ended
	Sep. 30, 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 September 30, 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 July 1, 2018, net of taxes $ (7,031) $ 359 $ (9,194) $ (15,866) Other comprehensive income (loss) before reclassification, net of taxes (1,335) — (4) (1,339) Amounts reclassified from other comprehensive income (loss), net of taxes — (8) 40 32 Net current period other comprehensive income (loss), net of taxes (1,335) (8) 36 (1,307) Ending balance September 30, 2018, net of taxes $ (8,366) $ 351 $ (9,158) $ (17,173) Beginning balance July 1, 2017, net of taxes $ 877 $ 321 $ (7,665) $ (6,467) Other comprehensive income (loss) before reclassification, net of taxes 312 — (7) 305 Amounts reclassified from other comprehensive income (loss), net of taxes — (7) 29 22 Net current period other comprehensive income (loss), net of taxes 312 (7) 22 327 Ending balance September 30, 2017, net of taxes $ 1,189 $ 314 $ (7,643) $ (6,140) Nine Months Ended September 30, 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 Maturity Items Total (Dollars in thousands) Beginning balance January 1, 2018, net of taxes $ (362) $ 375 $ (9,265) $ (9,252) Other comprehensive (loss) before reclassification, net of taxes (7,817) — (13) (7,830) Amounts reclassified from other comprehensive (loss) income, net of taxes (187) (24) 120 (91) Net current period other comprehensive (loss) income, net of taxes (8,004) (24) 107 (7,921) Ending balance September 30, 2018, net of taxes $ (8,366) $ 351 $ (9,158) $ (17,173) Beginning balance January 1, 2017, net of taxes $ (540) $ 336 $ (7,710) $ (7,914) Other comprehensive income (loss) before reclassification, net of taxes 1,725 — (22) 1,703 Amounts reclassified from other comprehensive income (loss), net of taxes 4 (22) 89 71 Net current period other comprehensive income (loss), net of taxes 1,729 (22) 67 1,774 Ending balance September 30, 2017, net of taxes $ 1,189 $ 314 $ (7,643) $ (6,140) Amounts Reclassified from AOCI(1) Three Months Ended September 30, 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 $ — $ — Gain (loss) on sales of securities — — Income tax expense — — Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 11 12 Interest income on taxable securities (3) (5) Income tax expense 8 7 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 22 Income tax benefit (40) (29) Net of tax Total reclassification for the year $ (32) $ (22) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 9—Benefit Plans) and includes split-dollar life insurance benefit plan. Amounts Reclassified from AOCI(1) Nine Months Ended Details About AOCI Components 2018 2017 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 266 $ (6) Gain (loss) on sales of securities (79) 2 Income tax expense 187 (4) Net of tax Amortization of unrealized gain on securities available-for- sale that were reclassified to securities held-to-maturity 33 38 Interest income on taxable securities (9) (16) Income tax expense 24 22 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 48 53 Actuarial losses (219) (207) (171) (154) Salaries and employee benefits 51 65 Income tax benefit (120) (89) Net of tax Total reclassification from AOCI for the year $ 91 $ (71) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 9—Benefit Plans) and includes split-dollar life insurance benefit plan.

Securities

Securities	9 Months Ended
	Sep. 30, 2018
Securities
Securities	4) Securities The amortized cost and estimated fair value of securities at September 30, 2018 and December 31, 2017 were as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair September 30, 2018 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 324,309 $ 18 $ (12,662) $ 311,665 U.S. Government sponsored entities 7,419 — (13) 7,406 Total $ 331,728 $ 18 $ (12,675) $ 319,071 Securities held-to-maturity: Agency mortgage-backed securities $ 288,594 $ — $ (12,778) $ 275,816 Municipals - exempt from Federal tax 87,138 242 (3,498) 83,882 Total $ 375,732 $ 242 $ (16,276) $ 359,698 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 September 30, 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 September 30, 2018 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 76,522 $ (2,290) $ 231,110 $ (10,372) $ 307,632 $ (12,662) U.S. Government sponsored entities 7,405 (13) — — 7,405 (13) Total $ 83,927 $ (2,303) $ 231,110 $ (10,372) $ 315,037 $ (12,675) Securities held-to-maturity: Agency mortgage-backed securities $ 71,766 $ (2,639) $ 203,293 $ (10,139) $ 275,059 $ (12,778) Municipals - exempt from Federal tax 33,027 (996) 33,211 (2,502) 66,238 (3,498) Total $ 104,793 $ (3,635) $ 236,504 $ (12,641) $ 341,297 $ (16,276) 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 September 30, 2018, the Company held 495 securities (172 available-for-sale and 323 held‑to‑maturity), of which 428 had fair values below amortized cost. At September 30, 2018, there were $231,110,000 of agency mortgage-back securities available-for-sale, $203,293,000 of agency mortgage-backed securities held-to-maturity, and $33,211,000 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 $23,013,000 at September 30, 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 September 30, 2018. The proceeds from sales of securities and the resulting gains and losses were as follows for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) (Dollars in thousands) Proceeds $ — $ — $ 94,291 $ 6,536 Gross gains — — 1,243 — Gross losses — — (977) (6) The amortized cost and estimated fair values of securities as of September 30, 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) Due after one through five years $ 7,419 $ 7,406 Agency mortgage-backed securities 324,309 311,665 Total $ 331,728 $ 319,071 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 503 $ 503 Due after 3 months through one year 286 286 Due after one through five years 4,558 4,587 Due after five through ten years 23,713 23,417 Due after ten years 58,078 55,089 Agency mortgage-backed securities 288,594 275,816 Total $ 375,732 $ 359,698 Securities with amortized cost of $44,595,000 and $110,874,000 as of September 30, 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	9 Months Ended
	Sep. 30, 2018
Loans
Loans	5) Loans Loans were as follows for the periods indicated: September 30, December 31, 2018 2017 (Dollars in thousands) Loans held-for-investment: Commercial $ 600,594 $ 573,296 Real estate: CRE 988,491 772,867 Land and construction 131,548 100,882 Home equity 116,657 79,176 Residential mortgages 52,441 44,561 Consumer 9,932 12,395 Loans 1,899,663 1,583,177 Deferred loan fees, net (276) (510) Loans, net of deferred fees 1,899,387 1,582,667 Allowance for loan losses (27,426) (19,658) Loans, net $ 1,871,961 $ 1,563,009 At September 30, 2018, total net loans included in the table above include $43,311,000, $115,158,000 and $193,787,000, of the loans acquired in the Focus Business Bank (“Focus”), Tri-Valley, and United American acquisitions that were not purchased credit impaired loans, respectively. At December 31, 2017, total net loans included in the table above include $58,551,000, of the loans acquired in the Focus transaction that were not purchased credit impaired loans. There was a ($425,000) credit to the provision for loan losses for the third quarter of 2018, compared to a provision for loan losses of $115,000 for the third quarter of 2017. The credit to the provision for loan losses for the third quarter of 2018 was primarily due to net recoveries of $1,187,000. For the nine months ended September 30, 2018, there was a $7,279,000 provision for loan losses compared to a $390,000 provision for loan losses for the nine months ended September 30, 2017. The increase in the provision for loan losses for the first nine months of 2018 compared to the first nine months of 2017 was primarily due to a single large lending relationship that was placed on nonaccrual during the second quarter of 2018. At September 30, 2018, the recorded investment of this lending relationship was $21,764,000, and the Company had a $7,000,000 specific loan loss reserve allocated for this lending relationship. Additionally, subsequent to the end of the third quarter of 2018, the recorded investment of this lending relationship was reduced to $17,384,000. Net recoveries totaled $1,187,000 for the third quarter of 2018, and $489,000 for the first nine months of 2018, compared to net recoveries of $236,000 for the third quarter of 2017, and net recoveries of $269,000 for the first nine months of 2017. Changes in the allowance for loan losses were as follows for the periods indicated: Three Months Ended September 30, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,522 $ 9,020 $ 122 $ 26,664 Charge-offs (719) — (25) (744) Recoveries 1,897 34 — 1,931 Net (charge-offs) recoveries 1,178 34 (25) 1,187 Provision (credit) for loan losses (1,427) 1,022 (20) (425) End of period balance $ 17,273 $ 10,076 $ 77 $ 27,426 Three Months Ended September 30, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 11,259 $ 7,982 $ 156 $ 19,397 Charge-offs (111) — — (111) Recoveries 281 66 — 347 Net recoveries 170 66 — 236 Provision (credit) for loan losses (441) 592 (36) 115 End of period balance $ 10,988 $ 8,640 $ 120 $ 19,748 Nine Months Ended September 30, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 Charge-offs (1,835) — (25) (1,860) Recoveries 2,229 120 — 2,349 Net (charge-offs) recoveries 394 120 (25) 489 Provision for loan losses 6,271 1,006 2 7,279 End of period balance $ 17,273 $ 10,076 $ 77 $ 27,426 Nine Months Ended September 30, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,656 $ 8,327 $ 106 $ 19,089 Charge-offs (2,179) — — (2,179) Recoveries 1,453 995 — 2,448 Net (charge-offs) recoveries (726) 995 — 269 Provision (credit) for loan losses 1,058 (682) 14 390 End of period balance $ 10,988 $ 8,640 $ 120 $ 19,748 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: September 30, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 7,089 $ — $ — $ 7,089 Collectively evaluated for impairment 10,184 10,076 77 20,337 Acquired with deteriorated credit quality — — — — Total allowance balance $ 17,273 $ 10,076 $ 77 $ 27,426 Loans: — Individually evaluated for impairment $ 18,843 $ 6,206 $ — $ 25,049 Collectively evaluated for impairment 581,751 1,282,931 9,932 1,874,614 Acquired with deteriorated credit quality — — — — Total loan balance $ 600,594 $ 1,289,137 $ 9,932 $ 1,899,663 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 September 30, 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: September 30, 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 $ 6,246 $ 6,246 $ — $ 1,243 $ 1,243 $ — Real estate: CRE 5,639 5,639 — 500 500 — Land and construction — — — 138 119 — Home Equity 567 567 — 379 379 — Consumer — — — 1 1 — Total with no related allowance recorded 12,452 12,452 — 2,261 2,242 — With an allowance recorded: Commercial 12,597 12,597 7,089 589 532 290 Total with an allowance recorded 12,597 12,597 7,089 589 532 290 Total $ 25,049 $ 25,049 $ 7,089 $ 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 September 30, 2018 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 19,638 $ 5,720 $ — $ 572 $ — $ 25,930 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Three Months Ended September 30, 2017 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 2,010 $ 501 $ 641 $ 394 $ 1 $ 3,547 Interest income during impairment $ — $ — $ 3 $ — $ — $ 3 Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Nine Months Ended September 30, 2018 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 11,056 $ 3,110 $ 30 $ 472 $ — $ 14,668 Interest income during impairment $ — $ — $ $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Nine Months Ended September 30, 2017 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 2,625 $ 583 $ 419 $ 326 $ 2 $ 3,955 Interest income during impairment $ — $ — $ 3 $ — $ — $ 3 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: September 30, December 31, 2018 2017 2017 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 23,342 $ 2,560 $ 2,250 Restructured and loans over 90 days past due and still accruing 1,373 931 235 Total nonperforming loans 24,715 3,491 2,485 Other restructured loans 334 325 289 Total impaired loans $ 25,049 $ 3,816 $ 2,774 The following table presents the nonperforming loans by class for the periods indicated: September 30, 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 $ 17,361 $ 1,148 $ 18,509 $ 1,250 $ 235 $ 1,485 Real estate: CRE 5,639 — 5,639 501 — 501 Land and construction — — — 119 — 119 Home equity 342 225 567 379 — 379 Consumer — — — 1 — 1 Total $ 23,342 $ 1,373 $ 24,715 $ 2,250 $ 235 $ 2,485 The following tables present the aging of past due loans by class for the periods indicated: September 30, 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 $ 6,430 $ 2,098 $ 1,456 $ 9,984 $ 590,610 $ 600,594 Real estate: CRE — — — — 988,491 988,491 Land and construction — — — — 131,548 131,548 Home equity 967 — — 967 115,690 116,657 Residential mortgages — — — — 52,441 52,441 Consumer — — — — 9,932 9,932 Total $ 7,397 $ 2,098 $ 1,456 $ 10,951 $ 1,888,712 $ 1,899,663 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 $10,951,000 and $6,943,000 at September 30, 2018 and December 31, 2017, respectively, of which $617,000 and $1,410,000 were on nonaccrual, respectively. At September 30, 2018, there were also $22,725,000 of loans less than 30 days past due included in nonaccrual loans held-for-investment, which included $21,764,000 of loans related to a single lending relationship. 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 being 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 as of September 30, 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: September 30, 2018 December 31, 2017 Nonclassified Classified Total Nonclassified Classified Total Commercial $ 577,325 $ 23,269 $ 600,594 $ 554,913 $ 18,383 $ 573,296 Real estate: CRE 982,852 5,639 988,491 766,988 5,879 772,867 Land and construction 131,548 — 131,548 100,763 119 100,882 Home equity 115,019 1,638 116,657 78,486 690 79,176 Residential mortgages 52,441 — 52,441 44,561 — 44,561 Consumer 9,932 — 9,932 12,394 1 12,395 Total $ 1,869,117 $ 30,546 $ 1,899,663 $ 1,558,105 $ 25,072 $ 1,583,177 The increase in classified assets at September 30, 2018 was primarily due to seasonal advances on a line of credit associated with a single large lending relationship that was moved to classified loans in the fourth quarter of 2017, which totaled $21,764,000 at September 30, 2018, compared to $12,500,000 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 September 30, 2018 was $676,000, which are all accrual 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 $46,000 and $1,000 of specific reserves were established with respect to these loans as of September 30, 2018 and December 31, 2017. The following table presents loans by class modified as troubled debt restructurings: During the Nine Months Ended September 30, 2018 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 2 $ 159 $ 159 Home equity 1 225 225 Total 3 $ 384 $ 384 The following table presents loans by class modified as troubled debt restructurings: During the Three and Nine Months Ended September 30, 2017 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 3 $ 318 $ 318 Total 3 $ 318 $ 318 During the three months ended September 30, 2018, there were no new loans modified as 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 to customers with outstanding loans that are classified as troubled debt restructurings as of September 30, 2018. 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 and nine months ended September 30, 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.

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2018
Business Combinations
Business Combinations	6) Business Combinations On April 6, 2018, the Company completed its acquisition of Tri-Valley for a transaction value of $32,320,000. At closing the Company issued 1,889,613 shares of the Company’s common stock with an aggregate market value of $30,725,000 on the date of closing. The number of shares issued was based on a fixed exchange ratio of 0.0489 of a share of the Company’s common stock for each outstanding share of Tri-Valley common stock. In addition, at closing the Company paid cash to the holder of a stock warrant and holders of outstanding stock options and related fees and fractional shares totaling $1,595,000. The following table summarizes the consideration paid for Tri-Valley: (Dollars in thousands) Cash paid for: Warrant $ 889 Options 615 Other 91 Total cash paid 1,595 Issuance of 1,889,613 shares of common stock to Tri- Valley shareholders at $16.26 per share 30,725 Total consideration $ 32,320 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition. As As Recorded Fair Recorded by Value at Tri-Valley Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 21,757 $ 1,153 (a) $ 22,910 Loans 123,532 (2,563) (b) 120,969 Allowance for loan losses (1,969) 1,969 (c) — Other intangible assets — 1,978 (d) 1,978 Other assets, net 9,939 (2,894) (e) 7,045 Total assets acquired $ 153,259 $ (357) 152,902 Liabililities assumed: Deposits $ 135,351 $ 37 (f) 135,388 Other liabilities 608 — 608 Total liabilities assumed $ 135,959 $ 37 135,996 Net assets acquired 16,906 Purchase price 30,725 Goodwill recorded in the merger $ 13,819 Explanation of certain fair value related adjustments for the Tri-Valley acquisition: (a) (b) (c) (d) (e) (f) Tri-Valley’s results of operations have been included in the Company’s results of operations beginning April 7, 2018. On May 4, 2018, the Company completed its acquisition of United American for a transaction value of $56,417,000. At closing the Company issued 2,826,032 shares of the Company’s common stock with an aggregate market value of $47,280,000 on the date of closing. The number of shares issued was based on a fixed exchange ratio of 2.1644 of a share of the Company’s common stock for each outstanding share of United American common stock and each common stock equivalent underlying the United American Series D Preferred Stock and Series E Preferred Stock. The shareholders of the United American Series A Preferred Stock and Series B Preferred Stock received $1,000 cash for each share totaling $8,700,000 and $435,000, respectively. In addition, the Company paid $2,000 in cash for fractional shares, for total cash consideration of $9,137,000. The following table summarizes the consideration paid for United American: (Dollars in thousands) Consideration paid: Cash paid for: Series A Preferred Stock $ 8,700 Series B Preferred Stock 435 Other 2 Total cash paid 9,137 Issuance of 2,826,032 shares of common stock to United American shareholders at $16.73 per share 47,280 Total consideration $ 56,417 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition. As As Recorded Fair Recorded by Value at United American Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 45,638 $ (32,520) (a) $ 13,118 Securities avaiable-for-sale 64,144 (421) (b) 63,723 Loans 196,694 18,783 (c) 215,477 Allowance for loan lossess (2,952) 2,952 (d) — Other intangible assets — 6,383 (e) 6,383 Other assets, net 9,119 (1,078) (f) 8,041 Total assets acquired $ 312,643 $ (5,901) 306,742 Liabililities assumed: Deposits $ 281,189 $ 51 (g) 281,240 Other borrowings 62 — 62 Other liabilities 2,617 (188) (h) 2,429 Total liabilities $ 283,868 $ (137) 283,731 Net assets acquired 23,011 Purchase price 47,280 Goodwill recorded in the merger $ 24,269 Explanation of certain fair value related adjustments for the United American acquisition: (a) (b) (c) (d) (e) (f) (g) (h) United American’s results of operations have been included in the Company’s results of operations beginning May 5, 2018. The Company believes the merger provides the opportunity to combine three independent business banking franchises with similar philosophies and cultures into a combined $3.2 billion business bank based in San Jose, California. The pooling of the three banks’ resources and knowledge enhance our capabilities, operational efficiencies, and community outreach. The Company also believes the combined bank will be much better positioned to meet the needs of our customers, shareholders and the community. The one-time pre-tax acquisition and integration costs of $16,000 and $5,452,000 for the three months and nine months ended September 30, 2018, respectively, were included in other noninterest expense. In addition, salaries and employee benefits included severance and retention expense of $183,000 and $3,576,000 for the three months and nine months ended September 30, 2018, respectively, related to the Tri-Valley and United American acquisitions. Total severance, retention, acquisition and integration costs were $199,000 and $9,028,000 for the three months and nine months ended September 30, 2018, respectively. The fair value of net assets acquired includes fair value adjustments to certain receivables of which some were considered impaired and some were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows, adjusted for expected losses and prepayments, where appropriate. The receivables that were not considered impaired at the acquisition date were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. Goodwill of $13,819,000 arising from the Tri-Valley acquisition and $24,269,000 from the United American acquisition is largely attributable to synergies and cost savings resulting from combining the operations of the companies. As these transactions were structured as a tax-free exchange, the goodwill will not be deductible for tax purposes. Management’s preliminary valuation of the tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, and the resulting allocation of the consideration paid for the allocation is reflected in the tables above. Prior to the end of the one-year measurement period for finalizing the consideration paid allocation, if information becomes available which would indicate adjustments are required to the allocation, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined. Loan valuations may be adjusted based on new information obtained by the Company in future periods that may reflect conditions or events that existed on the acquisition date. Deferred tax assets may be adjusted for purchase accounting adjustments on open areas such as loans or upon filing final “stub” period tax returns for April 6, 2018 for Tri-Valley, and May 4, 2018 for United American. The closing equity balance for Tri-Valley and United American are also subject to adjustments for invoices received after the close of the transaction that were attributable to their operations through closing.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	7) Goodwill and Other Intangible Assets Goodwill At September 30, 2018, the carrying value of goodwill was $83,752,000, which included $13,045,000 of goodwill related to its acquisition of Bay View Funding, $32,619,000 from its acquisition of Focus, $13,819,000 from its acquisition of Tri-Valley and $24,269,000 from its acquisition of United American. 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 goodwill impairment analysis as of November 30, 2017 with the assistance of an independent valuation firm. No events or circumstances since the November 30, 2017 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists. Other Intangible Assets Other intangible assets acquired in the acquisition of United American in May 2018 included a core deposit intangible asset of $5,723,000, amortized on an accelerated method over its estimated useful life of 10 years, and a below market value lease intangible asset of $660,000, amortized over its estimated useful life of 3 years. Accumulated amortization of the core deposit intangible and below market lease was $469,000 at September 30, 2018. Other intangible assets acquired in the acquisition of Tri-Valley in April 2018 include a core deposit intangible asset of $1,768,000, amortized on an accelerated method over its estimated useful life of 10 years, and a below market value lease intangible asset of $210,000, amortized over its estimated useful life of 11 years. Accumulated amortization of the core deposit intangible and below market lease was $143,000 at September 30, 2018. The core deposit intangible asset acquired in the acquisition of Focus in August 2015 was $6,285,000. This asset is amortized on an accelerated method over its estimated useful life of 10 years. Accumulated amortization of this intangible asset was $2,576,000 and $1,995,000 at September 30, 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 $743,000 and $601,000 at September 30, 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: United United Bay View Funding American American Tri-Valley Tri-Valley Focus Customer & Core Below Core Below Core Brokered Total Deposit Market Deposit Market Deposit Relationship Amortization Year Intangible Lease Intangible Lease Intangible Intangible Expense (Dollars in thousands) 2018 $ 585 $ 170 $ 208 $ 14 $ 775 $ 190 $ 1,942 2019 777 255 240 18 734 190 2,214 2020 665 235 208 18 716 190 2,032 2021 602 — 184 18 596 190 1,590 2022 553 — 167 18 502 190 1,430 2023 521 — 158 18 420 190 1,307 Thereafter 2,020 — 603 106 549 159 3,437 $ 5,723 $ 660 $ 1,768 $ 210 $ 4,292 $ 1,299 $ 13,952 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 September 30, 2018 and December 31, 2017.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Taxes
Income Taxes	8) Income Taxes Some items of income and expense are recognized in different years for tax purposes than when applying generally accepted accounting principles, leading to timing differences between the Company’s actual current tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the “deferred” portion of the Company’s tax expense or benefit, which is accumulated on the Company’s books as a deferred tax asset or deferred tax liability until such time as they reverse. Under generally accepted accounting principles, a valuation allowance is required if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. On December 22, 2017, the Tax Cuts and Jobs Act (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. The Company had net deferred tax assets of $28,143,000, and $16,247,000, at September 30, 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 September 30, 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: September 30, Decemebr 31, 2018 2017 (Dollars in thousands) Low income housing investments $ 3,139 $ 3,411 Future commitments $ 287 $ 302 The Company expects future commitments of $15,000 to be paid in 2018, and $272,000 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 September 30, 2018 and September 30, 2017, respectively, and low income housing investment losses of $117,000 and $115,000, respectively. For tax purposes, the Company had low income housing tax credits of $319,000 and $329,000 for the nine months ended September 30, 2018 and September 30, 2017, respectively, and low income housing investment losses of $351,000 and $345,000, respectively. The Company recognized low income housing investment expense as a component of income tax expense.

Benefit Plans

Benefit Plans	9 Months Ended
	Sep. 30, 2018
Benefit Plans
Benefit Plans	9) 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 Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 62 $ 81 $ 186 $ 243 Interest cost 237 259 711 777 Amortization of net actuarial loss 73 69 219 207 Net periodic benefit cost $ 372 $ 409 $ 1,116 $ 1,227 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: September 30, 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 170 243 Actuarial loss — 167 Projected benefit obligation at end of period $ 6,881 $ 6,711 September 30, December 31, 2018 2017 (Dollars in thousands) Net actuarial loss $ 2,569 $ 2,453 Prior transition obligation 1,171 1,238 Accumulated other comprehensive loss $ 3,740 $ 3,691 Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) Amortization of prior transition obligation $ (16) $ (18) $ (48) $ (53) Interest cost 56 61 170 182 Net periodic benefit cost $ 40 $ 43 $ 122 $ 129

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2018
Fair Value
Fair Value	10) 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 September 30, 2018 Available-for-sale securities: Agency mortgage-backed securities $ 311,665 — $ 311,665 — U.S. Government sponsored entities 7,406 — 7,406 — I/O strip receivables 863 — 863 — 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 September 30, 2018 Impaired loans - held-for-investment: Commercial $ 5,508 — — $ 5,508 $ 5,508 — — $ 5,508 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: September 30, 2018 December 31, 2017 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 12,597 $ 651 Book value of impaired loans held-for-investment carried at cost 12,452 2,123 Total impaired loans held-for-investment $ 25,049 $ 2,774 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 12,597 $ 651 Specific valuation allowance (7,089) (290) Impaired loans held-for-investment carried at fair value, net $ 5,508 $ 361 Impaired loans held‑for‑investment which are measured primarily for impairment using the fair value of the collateral were $25,049,000 at September 30, 2018. In addition, these loans had a specific valuation allowance of $7,089,000 at September 30, 2018. Impaired loans held‑for‑investment totaling $12,597,000 at September 30, 2018, were carried at fair value as a result of the aforementioned partial charge‑offs and specific valuation allowances at period‑end. The remaining $12,452,000 of impaired loans were carried at cost at September 30, 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 nine months of 2018 on impaired loans held‑for‑investment carried at fair value at September 30, 2018 resulted in an additional provision for loan losses of $7,042,000. At September 30, 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: September 30, 2018 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 5,508 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 September 30, 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 $ 381,029 $ 381,029 $ — $ — $ 381,029 Securities available-for-sale 319,071 — 319,071 — 319,071 Securities held-to-maturity 375,732 — 359,698 — 359,698 Loans (including loans held-for-sale), net 1,878,305 — 6,344 1,840,231 1,846,575 FHLB stock, FRB stock, and other investments 25,210 — — — N/A Accrued interest receivable 9,213 — 2,327 6,886 9,213 I/O strips receivables 863 — 863 — 863 Liabilities: Time deposits $ 155,879 $ — $ 156,206 $ — $ 156,206 Other deposits 2,589,420 — 2,589,420 — 2,589,420 Subordinated debt 39,322 — 39,322 — 39,322 Accrued interest payable 1,026 — 1,026 — 1,026 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 September 30, 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 September 30, 2018 and December 31, 2017 are valued at the lower of cost or fair value as described previously.

Equity Plan

Equity Plan	9 Months Ended
	Sep. 30, 2018
Equity Plan
Equity Plan	11) 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 nine months ended September 30, 2018, the Company granted 305,500 shares of nonqualified stock options and 97,818 shares of restricted stock. There were 1,186,800 shares available for the issuance of equity awards under the 2013 Plan as of September 30, 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 305,500 $ 16.82 Exercised (259,770) $ 9.62 Forfeited or expired (84,079) $ 14.20 Outstanding at September 30, 2018 1,564,383 $ 10.69 6.64 $ 7,176,631 Vested or expected to vest 1,470,520 6.64 $ 6,746,033 Exercisable at September 30, 2018 1,011,193 5.46 $ 6,475,976 Information related to the equity plans for the periods indicated: Nine Months Ended September 30, 2018 2017 Intrinsic value of options exercised $ 1,767,884 $ 1,331,528 Cash received from option exercise $ 2,499,481 $ 1,352,236 Tax benefit realized from option exercises $ 513,901 $ 543,654 Weighted average fair value of options granted $ 3.07 $ 2.66 As of September 30, 2018, there was $1,499,000 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 2.80 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: Nine Months Ended September 30, 2018 2017 Expected life in months(1) 72 72 Volatility(1) 21 % 24 % Weighted average risk-free interest rate(2) 2.87 % 1.94 % Expected dividends(3) 2.62 % 2.78 % (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 Granted 97,818 $ 16.83 Vested (67,015) $ 16.69 Forfeited or expired (2,440) $ 12.65 Nonvested shares at September 30, 2018 209,548 $ 11.04 As of September 30, 2018, there was $2,386,000 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 2.67 years.

Subordinated Debt

Subordinated Debt	9 Months Ended
	Sep. 30, 2018
Subordinated Debt
Subordinated Debt	12) 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 st and December 1 st of each year through June 1, 2022 and quarterly thereafter on March 1 st , June 1 st , September 1 st and December 1 st 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	9 Months Ended
	Sep. 30, 2018
Capital Requirements
Capital Requirements	13) 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 September 30, 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 was 0.625% of risk-weighted assets for 2016, 1.25% for 2017, and is 1.875% for 2018, and will be 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 September 30, 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 September 30, 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 September 30, 2018, and December 31, 2017. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2018 Total Capital $ 334,152 14.4 % $ 228,973 9.875 % (to risk-weighted assets) Tier 1 Capital $ 266,654 11.5 % $ 182,599 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 266,654 11.5 % $ 147,818 6.375 % (to risk-weighted assets) Tier 1 Capital $ 266,654 8.6 % $ 124,005 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 September 30, 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 September 30, 2018 Total Capital $ 310,636 13.4 % $ 231,696 10.0 % $ 228,800 9.875 % (to risk-weighted assets) Tier 1 Capital $ 282,460 12.2 % $ 185,357 8.0 % $ 182,461 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 282,460 12.2 % $ 150,602 6.5 % $ 147,706 6.375 % (to risk-weighted assets) Tier 1 Capital $ 282,460 9.1 % $ 154,920 5.0 % $ 123,936 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 $39,322,000 at September 30, 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 September 30, 2018, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $26,057,000. Similar restrictions applied to the amount and sum of loan advances and other transfers of funds from HBC to the parent company. During the third quarter of 2018, HBC distributed dividends of $5,000,000 for a total of $13,000,000 for the first nine months of 2018.

Loss Contingencies

Loss Contingencies	9 Months Ended
	Sep. 30, 2018
Loss Contingencies
Loss Contingencies	14) 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	9 Months Ended
	Sep. 30, 2018
Revenue Recognition
Revenue Recognition	15) 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. The following noninterest income revenue streams are in-scope of Topic 606: 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 September 30, 2018 2017 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 551 $ 510 Interchange fees 83 75 Merchant services revenue 39 44 Other 179 166 Total noninterest income in-scope of Topic 606 852 795 Noninterest Income Out-of-scope of Topic 606 1,354 1,665 Total noninterest income $ 2,206 $ 2,460 Nine Months Ended September 30, 2018 2017 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 1,524 $ 1,449 Interchange fees 239 208 Merchant services revenue 122 129 Other 479 498 Total noninterest income in-scope of Topic 606 2,364 2,284 Noninterest Income Out-of-scope of Topic 606 4,817 4,764 Total noninterest income $ 7,181 $ 7,048

Noninterest Expense

Noninterest Expense	9 Months Ended
	Sep. 30, 2018
Noninterest Expense
Noninterest Expense	16) Noninterest Expense The following table sets forth the various components of the Company’s noninterest expense for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) Salaries and employee benefits (1) $ 10,719 $ 9,071 $ 35,302 $ 27,766 Occupancy and equipment 1,559 1,142 3,927 3,426 Professional fees 721 695 1,116 2,439 Amortization of intangible assets 631 296 1,336 1,083 Software subscriptions 555 475 1,747 1,333 Data processing 525 411 1,501 1,080 Insurance expense 430 401 1,236 1,123 Acquisition and integration related costs 16 — 5,452 — Other 2,572 2,343 6,963 7,166 Total $ 17,728 $ 14,834 $ 58,580 $ 45,416 (1) Includes severance and retention retention expense related to the Tri-Valley and United American acquistions of $183,000 and $3,576,000 for third quarter of 2018 and the first nine months of 2018, respectively

Business Segment Information

Business Segment Information	9 Months Ended
	Sep. 30, 2018
Business Segment Information
Business Segment Information	17) 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 September 30, 2018 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 30,425 4,185 $ 34,610 Intersegment interest allocations 601 (601) — Total interest expense 2,159 — 2,159 Net interest income 28,867 3,584 32,451 Provision (credit) for loan losses (671) 246 (425) Net interest income after provision 29,538 3,338 32,876 Noninterest income 2,011 195 2,206 Noninterest expense (2) 16,045 1,683 17,728 Intersegment expense allocations 172 (172) — Income before income taxes 15,676 1,678 17,354 Income tax (benefit) expense 4,483 496 4,979 Net income $ 11,193 $ 1,182 $ 12,375 Total assets $ 3,107,897 $ 85,013 $ 3,192,910 Loans, net of deferred fees $ 1,828,379 $ 71,008 $ 1,899,387 Goodwill $ 70,708 $ 13,044 $ 83,752 (1) Includes the holding company’s results of operations (2) The banking segment’s noninterest expense includes acquisition cost of $199,000 Three Months Ended September 30, 2017 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 24,805 $ 3,150 $ 27,955 Intersegment interest allocations 284 (284) — Total interest expense 1,634 — 1,634 Net interest income 23,455 2,866 26,321 Provision for loan losses 107 8 115 Net interest income after provision 23,348 2,858 26,206 Noninterest income 2,101 359 2,460 Noninterest expense 13,149 1,685 14,834 Intersegment expense allocations 130 (130) — Income before income taxes 12,430 1,402 13,832 Income tax expense 4,660 589 5,249 Net income $ 7,770 $ 813 $ 8,583 Total assets $ 2,776,262 $ 67,686 $ 2,843,948 Loans, net of deferred fees $ 1,517,186 $ 48,764 $ 1,565,950 Goodwill $ 32,620 $ 13,044 $ 45,664 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2018 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 83,781 $ 10,686 $ 94,467 Intersegment interest allocations 1,304 (1,304) — Total interest expense 5,504 — 5,504 Net interest income 79,581 9,382 88,963 Provision for loan losses 6,958 321 7,279 Net interest income after provision 72,623 9,061 81,684 Noninterest income 6,628 553 7,181 Noninterest expense (2) 53,813 4,767 58,580 Intersegment expense allocations 574 (574) — Income before income taxes 26,012 4,273 30,285 Income tax expense 6,923 1,263 8,186 Net income $ 19,089 $ 3,010 $ 22,099 Total assets $ 3,107,897 85,013 $ 3,192,910 Loans, net of deferred fees $ 1,828,379 71,008 $ 1,899,387 Goodwill $ 70,708 13,044 $ 83,752 (1) Includes the holding company’s results of operations (2) The banking segment’s noninterest expense includes acquisition costs of $9,028,000 Nine Months Ended September 30, 2017 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 70,146 $ 8,613 $ 78,759 Intersegment interest allocations 786 (786) — Total interest expense 3,679 — 3,679 Net interest income 67,253 7,827 75,080 Provision for loan losses 372 18 390 Net interest income after provision 66,881 7,809 74,690 Noninterest income 6,153 895 7,048 Noninterest expense 40,152 5,264 45,416 Intersegment expense allocations 392 (392) — Income before income taxes 33,274 3,048 36,322 Income tax expense 12,472 1,280 13,752 Net income $ 20,802 $ 1,768 $ 22,570 Total assets $ 2,776,262 $ 67,686 $ 2,843,948 Loans, net of deferred fees $ 1,517,186 $ 48,764 $ 1,565,950 Goodwill $ 32,620 $ 13,044 $ 45,664 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events
Subsequent Events	18) Subsequent Events On October 25, 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 November 20, 2018 to shareholders of record on November 6, 2018.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 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, San Benito, and San Mateo 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 and nine months ended September 30, 2018 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2018.
Business Combinations	Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill resulted from the acquisition of Tri-Valley Bank (“Tri-Valley”) on April 6, 2018 and United American Bank (“United American”) on May 4, 2018, and from acquisitions in prior years. Goodwill represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment is recognized in the period identified. Other intangible assets consist of core deposit intangible assets and a below market value lease intangible asset, arising from the United American and Tri-Valley acquisitions. They are initially measured at fair value and then are amortized over their estimated useful lives. The core deposit intangible assets from the acquisitions of United American and Tri-Valley are being amortized on an accelerated method over ten years. The below market value lease intangible assets are being amortized on the straight line method over three years for United American and eleven years for Tri-Valley.
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 15 – 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 regarding the valuation of the loan portfolio. 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 has assessed our data needs and is in the process of implementing a system to comply with 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 and a charge to equity 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 Earn_2

Shareholders' Equity and Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands, except per share amounts) Net income $ 12,375 $ 8,583 $ 22,099 $ 22,570 Weighted average common shares outstanding for basic earnings per common share 43,230,016 38,152,633 41,132,043 38,060,224 Dilutive effect of stock options outstanding, using the treasury stock method 501,354 428,665 551,001 504,910 Shares used in computing diluted earnings per common share 43,731,370 38,581,298 41,683,044 38,565,134 Basic earnings per share $ 0.29 $ 0.22 $ $ 0.59 Diluted earnings per share $ 0.28 $ 0.22 $ $ 0.59

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (''AOCI'') (Tables)	9 Months Ended
	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Schedule of changes in AOCI by component	Three Months Ended September 30, 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 July 1, 2018, net of taxes $ (7,031) $ 359 $ (9,194) $ (15,866) Other comprehensive income (loss) before reclassification, net of taxes (1,335) — (4) (1,339) Amounts reclassified from other comprehensive income (loss), net of taxes — (8) 40 32 Net current period other comprehensive income (loss), net of taxes (1,335) (8) 36 (1,307) Ending balance September 30, 2018, net of taxes $ (8,366) $ 351 $ (9,158) $ (17,173) Beginning balance July 1, 2017, net of taxes $ 877 $ 321 $ (7,665) $ (6,467) Other comprehensive income (loss) before reclassification, net of taxes 312 — (7) 305 Amounts reclassified from other comprehensive income (loss), net of taxes — (7) 29 22 Net current period other comprehensive income (loss), net of taxes 312 (7) 22 327 Ending balance September 30, 2017, net of taxes $ 1,189 $ 314 $ (7,643) $ (6,140) Nine Months Ended September 30, 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 Maturity Items Total (Dollars in thousands) Beginning balance January 1, 2018, net of taxes $ (362) $ 375 $ (9,265) $ (9,252) Other comprehensive (loss) before reclassification, net of taxes (7,817) — (13) (7,830) Amounts reclassified from other comprehensive (loss) income, net of taxes (187) (24) 120 (91) Net current period other comprehensive (loss) income, net of taxes (8,004) (24) 107 (7,921) Ending balance September 30, 2018, net of taxes $ (8,366) $ 351 $ (9,158) $ (17,173) Beginning balance January 1, 2017, net of taxes $ (540) $ 336 $ (7,710) $ (7,914) Other comprehensive income (loss) before reclassification, net of taxes 1,725 — (22) 1,703 Amounts reclassified from other comprehensive income (loss), net of taxes 4 (22) 89 71 Net current period other comprehensive income (loss), net of taxes 1,729 (22) 67 1,774 Ending balance September 30, 2017, net of taxes $ 1,189 $ 314 $ (7,643) $ (6,140)
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI(1) Three Months Ended September 30, 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 $ — $ — Gain (loss) on sales of securities — — Income tax expense — — Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 11 12 Interest income on taxable securities (3) (5) Income tax expense 8 7 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 22 Income tax benefit (40) (29) Net of tax Total reclassification for the year $ (32) $ (22) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 9—Benefit Plans) and includes split-dollar life insurance benefit plan. Amounts Reclassified from AOCI(1) Nine Months Ended Details About AOCI Components 2018 2017 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 266 $ (6) Gain (loss) on sales of securities (79) 2 Income tax expense 187 (4) Net of tax Amortization of unrealized gain on securities available-for- sale that were reclassified to securities held-to-maturity 33 38 Interest income on taxable securities (9) (16) Income tax expense 24 22 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 48 53 Actuarial losses (219) (207) (171) (154) Salaries and employee benefits 51 65 Income tax benefit (120) (89) Net of tax Total reclassification from AOCI for the year $ 91 $ (71) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 9—Benefit Plans) and includes split-dollar life insurance benefit plan.

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2018
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Estimated Amortized Unrealized Unrealized Fair September 30, 2018 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 324,309 $ 18 $ (12,662) $ 311,665 U.S. Government sponsored entities 7,419 — (13) 7,406 Total $ 331,728 $ 18 $ (12,675) $ 319,071 Securities held-to-maturity: Agency mortgage-backed securities $ 288,594 $ — $ (12,778) $ 275,816 Municipals - exempt from Federal tax 87,138 242 (3,498) 83,882 Total $ 375,732 $ 242 $ (16,276) $ 359,698 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 September 30, 2018 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 76,522 $ (2,290) $ 231,110 $ (10,372) $ 307,632 $ (12,662) U.S. Government sponsored entities 7,405 (13) — — 7,405 (13) Total $ 83,927 $ (2,303) $ 231,110 $ (10,372) $ 315,037 $ (12,675) Securities held-to-maturity: Agency mortgage-backed securities $ 71,766 $ (2,639) $ 203,293 $ (10,139) $ 275,059 $ (12,778) Municipals - exempt from Federal tax 33,027 (996) 33,211 (2,502) 66,238 (3,498) Total $ 104,793 $ (3,635) $ 236,504 $ (12,641) $ 341,297 $ (16,276) 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 Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) (Dollars in thousands) Proceeds $ — $ — $ 94,291 $ 6,536 Gross gains — — 1,243 — Gross losses — — (977) (6)
Schedule of amortized cost and estimated fair values of securities, by contractual maturity	Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due after one through five years $ 7,419 $ 7,406 Agency mortgage-backed securities 324,309 311,665 Total $ 331,728 $ 319,071 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 503 $ 503 Due after 3 months through one year 286 286 Due after one through five years 4,558 4,587 Due after five through ten years 23,713 23,417 Due after ten years 58,078 55,089 Agency mortgage-backed securities 288,594 275,816 Total $ 375,732 $ 359,698

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2018
Loans
Schedule of loans	September 30, December 31, 2018 2017 (Dollars in thousands) Loans held-for-investment: Commercial $ 600,594 $ 573,296 Real estate: CRE 988,491 772,867 Land and construction 131,548 100,882 Home equity 116,657 79,176 Residential mortgages 52,441 44,561 Consumer 9,932 12,395 Loans 1,899,663 1,583,177 Deferred loan fees, net (276) (510) Loans, net of deferred fees 1,899,387 1,582,667 Allowance for loan losses (27,426) (19,658) Loans, net $ 1,871,961 $ 1,563,009
Schedule of changes in allowance for loan losses	Three Months Ended September 30, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,522 $ 9,020 $ 122 $ 26,664 Charge-offs (719) — (25) (744) Recoveries 1,897 34 — 1,931 Net (charge-offs) recoveries 1,178 34 (25) 1,187 Provision (credit) for loan losses (1,427) 1,022 (20) (425) End of period balance $ 17,273 $ 10,076 $ 77 $ 27,426 Three Months Ended September 30, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 11,259 $ 7,982 $ 156 $ 19,397 Charge-offs (111) — — (111) Recoveries 281 66 — 347 Net recoveries 170 66 — 236 Provision (credit) for loan losses (441) 592 (36) 115 End of period balance $ 10,988 $ 8,640 $ 120 $ 19,748 Nine Months Ended September 30, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 Charge-offs (1,835) — (25) (1,860) Recoveries 2,229 120 — 2,349 Net (charge-offs) recoveries 394 120 (25) 489 Provision for loan losses 6,271 1,006 2 7,279 End of period balance $ 17,273 $ 10,076 $ 77 $ 27,426 Nine Months Ended September 30, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,656 $ 8,327 $ 106 $ 19,089 Charge-offs (2,179) — — (2,179) Recoveries 1,453 995 — 2,448 Net (charge-offs) recoveries (726) 995 — 269 Provision (credit) for loan losses 1,058 (682) 14 390 End of period balance $ 10,988 $ 8,640 $ 120 $ 19,748
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method	September 30, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 7,089 $ — $ — $ 7,089 Collectively evaluated for impairment 10,184 10,076 77 20,337 Acquired with deteriorated credit quality — — — — Total allowance balance $ 17,273 $ 10,076 $ 77 $ 27,426 Loans: — Individually evaluated for impairment $ 18,843 $ 6,206 $ — $ 25,049 Collectively evaluated for impairment 581,751 1,282,931 9,932 1,874,614 Acquired with deteriorated credit quality — — — — Total loan balance $ 600,594 $ 1,289,137 $ 9,932 $ 1,899,663 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	September 30, 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 $ 6,246 $ 6,246 $ — $ 1,243 $ 1,243 $ — Real estate: CRE 5,639 5,639 — 500 500 — Land and construction — — — 138 119 — Home Equity 567 567 — 379 379 — Consumer — — — 1 1 — Total with no related allowance recorded 12,452 12,452 — 2,261 2,242 — With an allowance recorded: Commercial 12,597 12,597 7,089 589 532 290 Total with an allowance recorded 12,597 12,597 7,089 589 532 290 Total $ 25,049 $ 25,049 $ 7,089 $ 2,850 $ 2,774 $ 290
Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans	Three Months Ended September 30, 2018 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 19,638 $ 5,720 $ — $ 572 $ — $ 25,930 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Three Months Ended September 30, 2017 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 2,010 $ 501 $ 641 $ 394 $ 1 $ 3,547 Interest income during impairment $ — $ — $ 3 $ — $ — $ 3 Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Nine Months Ended September 30, 2018 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 11,056 $ 3,110 $ 30 $ 472 $ — $ 14,668 Interest income during impairment $ — $ — $ $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Nine Months Ended September 30, 2017 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 2,625 $ 583 $ 419 $ 326 $ 2 $ 3,955 Interest income during impairment $ — $ — $ 3 $ — $ — $ 3 Cash-basis interest recognized $ — $ — $ — $ — $ — $ —
Schedule of nonperforming loans	September 30, December 31, 2018 2017 2017 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 23,342 $ 2,560 $ 2,250 Restructured and loans over 90 days past due and still accruing 1,373 931 235 Total nonperforming loans 24,715 3,491 2,485 Other restructured loans 334 325 289 Total impaired loans $ 25,049 $ 3,816 $ 2,774
Schedule of nonperforming loans by class	September 30, 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 $ 17,361 $ 1,148 $ 18,509 $ 1,250 $ 235 $ 1,485 Real estate: CRE 5,639 — 5,639 501 — 501 Land and construction — — — 119 — 119 Home equity 342 225 567 379 — 379 Consumer — — — 1 — 1 Total $ 23,342 $ 1,373 $ 24,715 $ 2,250 $ 235 $ 2,485
Schedule of aging of past due loans by class of loans	September 30, 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 $ 6,430 $ 2,098 $ 1,456 $ 9,984 $ 590,610 $ 600,594 Real estate: CRE — — — — 988,491 988,491 Land and construction — — — — 131,548 131,548 Home equity 967 — — 967 115,690 116,657 Residential mortgages — — — — 52,441 52,441 Consumer — — — — 9,932 9,932 Total $ 7,397 $ 2,098 $ 1,456 $ 10,951 $ 1,888,712 $ 1,899,663 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	September 30, 2018 December 31, 2017 Nonclassified Classified Total Nonclassified Classified Total Commercial $ 577,325 $ 23,269 $ 600,594 $ 554,913 $ 18,383 $ 573,296 Real estate: CRE 982,852 5,639 988,491 766,988 5,879 772,867 Land and construction 131,548 — 131,548 100,763 119 100,882 Home equity 115,019 1,638 116,657 78,486 690 79,176 Residential mortgages 52,441 — 52,441 44,561 — 44,561 Consumer 9,932 — 9,932 12,394 1 12,395 Total $ 1,869,117 $ 30,546 $ 1,899,663 $ 1,558,105 $ 25,072 $ 1,583,177
Schedule of loans by class modified as troubled debt restructurings	The following table presents loans by class modified as troubled debt restructurings: During the Nine Months Ended September 30, 2018 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 2 $ 159 $ 159 Home equity 1 225 225 Total 3 $ 384 $ 384 The following table presents loans by class modified as troubled debt restructurings: During the Three and Nine Months Ended September 30, 2017 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 3 $ 318 $ 318 Total 3 $ 318 $ 318

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 30, 2018
Tri Valley Bank
Business Acquisition [Line Items]
Summary of consideration paid	(Dollars in thousands) Cash paid for: Warrant $ 889 Options 615 Other 91 Total cash paid 1,595 Issuance of 1,889,613 shares of common stock to Tri- Valley shareholders at $16.26 per share 30,725 Total consideration $ 32,320
Schedule of recognized identified assets acquired and liabilities assumed	As As Recorded Fair Recorded by Value at Tri-Valley Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 21,757 $ 1,153 (a) $ 22,910 Loans 123,532 (2,563) (b) 120,969 Allowance for loan losses (1,969) 1,969 (c) — Other intangible assets — 1,978 (d) 1,978 Other assets, net 9,939 (2,894) (e) 7,045 Total assets acquired $ 153,259 $ (357) 152,902 Liabililities assumed: Deposits $ 135,351 $ 37 (f) 135,388 Other liabilities 608 — 608 Total liabilities assumed $ 135,959 $ 37 135,996 Net assets acquired 16,906 Purchase price 30,725 Goodwill recorded in the merger $ 13,819 Explanation of certain fair value related adjustments for the Tri-Valley acquisition: (a) (b) (c) (d) (e) (f)
United American Bank
Business Acquisition [Line Items]
Summary of consideration paid	(Dollars in thousands) Consideration paid: Cash paid for: Series A Preferred Stock $ 8,700 Series B Preferred Stock 435 Other 2 Total cash paid 9,137 Issuance of 2,826,032 shares of common stock to United American shareholders at $16.73 per share 47,280 Total consideration $ 56,417
Schedule of recognized identified assets acquired and liabilities assumed	As As Recorded Fair Recorded by Value at United American Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 45,638 $ (32,520) (a) $ 13,118 Securities avaiable-for-sale 64,144 (421) (b) 63,723 Loans 196,694 18,783 (c) 215,477 Allowance for loan lossess (2,952) 2,952 (d) — Other intangible assets — 6,383 (e) 6,383 Other assets, net 9,119 (1,078) (f) 8,041 Total assets acquired $ 312,643 $ (5,901) 306,742 Liabililities assumed: Deposits $ 281,189 $ 51 (g) 281,240 Other borrowings 62 — 62 Other liabilities 2,617 (188) (h) 2,429 Total liabilities $ 283,868 $ (137) 283,731 Net assets acquired 23,011 Purchase price 47,280 Goodwill recorded in the merger $ 24,269 Explanation of certain fair value related adjustments for the United American acquisition: (a) (b) (c) (d) (e) (f) (g) (h)

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Other Intangible Assets
Schedule of estimated amortization expense	United United Bay View Funding American American Tri-Valley Tri-Valley Focus Customer & Core Below Core Below Core Brokered Total Deposit Market Deposit Market Deposit Relationship Amortization Year Intangible Lease Intangible Lease Intangible Intangible Expense (Dollars in thousands) 2018 $ 585 $ 170 $ 208 $ 14 $ 775 $ 190 $ 1,942 2019 777 255 240 18 734 190 2,214 2020 665 235 208 18 716 190 2,032 2021 602 — 184 18 596 190 1,590 2022 553 — 167 18 502 190 1,430 2023 521 — 158 18 420 190 1,307 Thereafter 2,020 — 603 106 549 159 3,437 $ 5,723 $ 660 $ 1,768 $ 210 $ 4,292 $ 1,299 $ 13,952

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Taxes
Summary of carrying amount of low income tax housing investment	September 30, Decemebr 31, 2018 2017 (Dollars in thousands) Low income housing investments $ 3,139 $ 3,411 Future commitments $ 287 $ 302

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2018
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 62 $ 81 $ 186 $ 243 Interest cost 237 259 711 777 Amortization of net actuarial loss 73 69 219 207 Net periodic benefit cost $ 372 $ 409 $ 1,116 $ 1,227
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	September 30, 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 170 243 Actuarial loss — 167 Projected benefit obligation at end of period $ 6,881 $ 6,711
Schedule of amounts recognized in accumulated other comprehensive loss	September 30, December 31, 2018 2017 (Dollars in thousands) Net actuarial loss $ 2,569 $ 2,453 Prior transition obligation 1,171 1,238 Accumulated other comprehensive loss $ 3,740 $ 3,691
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) Amortization of prior transition obligation $ (16) $ (18) $ (48) $ (53) Interest cost 56 61 170 182 Net periodic benefit cost $ 40 $ 43 $ 122 $ 129

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2018 Available-for-sale securities: Agency mortgage-backed securities $ 311,665 — $ 311,665 — U.S. Government sponsored entities 7,406 — 7,406 — I/O strip receivables 863 — 863 — 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 September 30, 2018 Impaired loans - held-for-investment: Commercial $ 5,508 — — $ 5,508 $ 5,508 — — $ 5,508 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	September 30, 2018 December 31, 2017 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 12,597 $ 651 Book value of impaired loans held-for-investment carried at cost 12,452 2,123 Total impaired loans held-for-investment $ 25,049 $ 2,774 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 12,597 $ 651 Specific valuation allowance (7,089) (290) Impaired loans held-for-investment carried at fair value, net $ 5,508 $ 361
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis	September 30, 2018 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 5,508 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 September 30, 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 $ 381,029 $ 381,029 $ — $ — $ 381,029 Securities available-for-sale 319,071 — 319,071 — 319,071 Securities held-to-maturity 375,732 — 359,698 — 359,698 Loans (including loans held-for-sale), net 1,878,305 — 6,344 1,840,231 1,846,575 FHLB stock, FRB stock, and other investments 25,210 — — — N/A Accrued interest receivable 9,213 — 2,327 6,886 9,213 I/O strips receivables 863 — 863 — 863 Liabilities: Time deposits $ 155,879 $ — $ 156,206 $ — $ 156,206 Other deposits 2,589,420 — 2,589,420 — 2,589,420 Subordinated debt 39,322 — 39,322 — 39,322 Accrued interest payable 1,026 — 1,026 — 1,026 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)	9 Months Ended
	Sep. 30, 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 305,500 $ 16.82 Exercised (259,770) $ 9.62 Forfeited or expired (84,079) $ 14.20 Outstanding at September 30, 2018 1,564,383 $ 10.69 6.64 $ 7,176,631 Vested or expected to vest 1,470,520 6.64 $ 6,746,033 Exercisable at September 30, 2018 1,011,193 5.46 $ 6,475,976
Schedule of information related to the equity Plan	Nine Months Ended September 30, 2018 2017 Intrinsic value of options exercised $ 1,767,884 $ 1,331,528 Cash received from option exercise $ 2,499,481 $ 1,352,236 Tax benefit realized from option exercises $ 513,901 $ 543,654 Weighted average fair value of options granted $ 3.07 $ 2.66
Schedule of assumptions used to estimate the fair value of each option grant on the date of grant	Nine Months Ended September 30, 2018 2017 Expected life in months(1) 72 72 Volatility(1) 21 % 24 % Weighted average risk-free interest rate(2) 2.87 % 1.94 % Expected dividends(3) 2.62 % 2.78 % (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 Granted 97,818 $ 16.83 Vested (67,015) $ 16.69 Forfeited or expired (2,440) $ 12.65 Nonvested shares at September 30, 2018 209,548 $ 11.04

Capital Requirements (Tables)

Capital Requirements (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2018 Total Capital $ 334,152 14.4 % $ 228,973 9.875 % (to risk-weighted assets) Tier 1 Capital $ 266,654 11.5 % $ 182,599 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 266,654 11.5 % $ 147,818 6.375 % (to risk-weighted assets) Tier 1 Capital $ 266,654 8.6 % $ 124,005 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 September 30, 2018 Total Capital $ 310,636 13.4 % $ 231,696 10.0 % $ 228,800 9.875 % (to risk-weighted assets) Tier 1 Capital $ 282,460 12.2 % $ 185,357 8.0 % $ 182,461 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 282,460 12.2 % $ 150,602 6.5 % $ 147,706 6.375 % (to risk-weighted assets) Tier 1 Capital $ 282,460 9.1 % $ 154,920 5.0 % $ 123,936 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)	9 Months Ended
	Sep. 30, 2018
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended September 30, 2018 2017 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 551 $ 510 Interchange fees 83 75 Merchant services revenue 39 44 Other 179 166 Total noninterest income in-scope of Topic 606 852 795 Noninterest Income Out-of-scope of Topic 606 1,354 1,665 Total noninterest income $ 2,206 $ 2,460 Nine Months Ended September 30, 2018 2017 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 1,524 $ 1,449 Interchange fees 239 208 Merchant services revenue 122 129 Other 479 498 Total noninterest income in-scope of Topic 606 2,364 2,284 Noninterest Income Out-of-scope of Topic 606 4,817 4,764 Total noninterest income $ 7,181 $ 7,048

Noninterest Expense (Tables)

Noninterest Expense (Tables)	9 Months Ended
	Sep. 30, 2018
Noninterest Expense
Schedule of noninterest expense	Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (Dollars in thousands) Salaries and employee benefits (1) $ 10,719 $ 9,071 $ 35,302 $ 27,766 Occupancy and equipment 1,559 1,142 3,927 3,426 Professional fees 721 695 1,116 2,439 Amortization of intangible assets 631 296 1,336 1,083 Software subscriptions 555 475 1,747 1,333 Data processing 525 411 1,501 1,080 Insurance expense 430 401 1,236 1,123 Acquisition and integration related costs 16 — 5,452 — Other 2,572 2,343 6,963 7,166 Total $ 17,728 $ 14,834 $ 58,580 $ 45,416 (1) Includes severance and retention retention expense related to the Tri-Valley and United American acquistions of $183,000 and $3,576,000 for third quarter of 2018 and the first nine months of 2018, respectively

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Business Segment Information
Schedule of information by operating segment	Three Months Ended September 30, 2018 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 30,425 4,185 $ 34,610 Intersegment interest allocations 601 (601) — Total interest expense 2,159 — 2,159 Net interest income 28,867 3,584 32,451 Provision (credit) for loan losses (671) 246 (425) Net interest income after provision 29,538 3,338 32,876 Noninterest income 2,011 195 2,206 Noninterest expense (2) 16,045 1,683 17,728 Intersegment expense allocations 172 (172) — Income before income taxes 15,676 1,678 17,354 Income tax (benefit) expense 4,483 496 4,979 Net income $ 11,193 $ 1,182 $ 12,375 Total assets $ 3,107,897 $ 85,013 $ 3,192,910 Loans, net of deferred fees $ 1,828,379 $ 71,008 $ 1,899,387 Goodwill $ 70,708 $ 13,044 $ 83,752 (1) Includes the holding company’s results of operations (2) The banking segment’s noninterest expense includes acquisition cost of $199,000 Three Months Ended September 30, 2017 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 24,805 $ 3,150 $ 27,955 Intersegment interest allocations 284 (284) — Total interest expense 1,634 — 1,634 Net interest income 23,455 2,866 26,321 Provision for loan losses 107 8 115 Net interest income after provision 23,348 2,858 26,206 Noninterest income 2,101 359 2,460 Noninterest expense 13,149 1,685 14,834 Intersegment expense allocations 130 (130) — Income before income taxes 12,430 1,402 13,832 Income tax expense 4,660 589 5,249 Net income $ 7,770 $ 813 $ 8,583 Total assets $ 2,776,262 $ 67,686 $ 2,843,948 Loans, net of deferred fees $ 1,517,186 $ 48,764 $ 1,565,950 Goodwill $ 32,620 $ 13,044 $ 45,664 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2018 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 83,781 $ 10,686 $ 94,467 Intersegment interest allocations 1,304 (1,304) — Total interest expense 5,504 — 5,504 Net interest income 79,581 9,382 88,963 Provision for loan losses 6,958 321 7,279 Net interest income after provision 72,623 9,061 81,684 Noninterest income 6,628 553 7,181 Noninterest expense (2) 53,813 4,767 58,580 Intersegment expense allocations 574 (574) — Income before income taxes 26,012 4,273 30,285 Income tax expense 6,923 1,263 8,186 Net income $ 19,089 $ 3,010 $ 22,099 Total assets $ 3,107,897 85,013 $ 3,192,910 Loans, net of deferred fees $ 1,828,379 71,008 $ 1,899,387 Goodwill $ 70,708 13,044 $ 83,752 (1) Includes the holding company’s results of operations (2) The banking segment’s noninterest expense includes acquisition costs of $9,028,000 Nine Months Ended September 30, 2017 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 70,146 $ 8,613 $ 78,759 Intersegment interest allocations 786 (786) — Total interest expense 3,679 — 3,679 Net interest income 67,253 7,827 75,080 Provision for loan losses 372 18 390 Net interest income after provision 66,881 7,809 74,690 Noninterest income 6,153 895 7,048 Noninterest expense 40,152 5,264 45,416 Intersegment expense allocations 392 (392) — Income before income taxes 33,274 3,048 36,322 Income tax expense 12,472 1,280 13,752 Net income $ 20,802 $ 1,768 $ 22,570 Total assets $ 2,776,262 $ 67,686 $ 2,843,948 Loans, net of deferred fees $ 1,517,186 $ 48,764 $ 1,565,950 Goodwill $ 32,620 $ 13,044 $ 45,664 (1) Includes the holding company’s results of operations

Basis of Presentation (Details)

Basis of Presentation (Details)	May 04, 2018	Apr. 06, 2018	May 31, 2018	Apr. 30, 2018	Sep. 30, 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
Tri Valley Bank and United American Bank | Core deposit
Segment Reporting
Finite-Lived Intangible Asset, Useful Life					10 years
Tri Valley Bank
Segment Reporting
Finite-Lived Intangible Asset, Useful Life		11 years
Tri Valley Bank | Core deposit
Segment Reporting
Finite-Lived Intangible Asset, Useful Life				10 years
Tri Valley Bank | Below market-value lease
Segment Reporting
Finite-Lived Intangible Asset, Useful Life				11 years	11 years
United American Bank
Segment Reporting
Finite-Lived Intangible Asset, Useful Life	3 years
United American Bank | Core deposit
Segment Reporting
Finite-Lived Intangible Asset, Useful Life			10 years
United American Bank | Below market-value lease
Segment Reporting
Finite-Lived Intangible Asset, Useful Life			3 years		3 years

Shareholders' Equity and Earn_3

Shareholders' Equity and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 12,375	$ 8,583	$ 22,099	$ 22,570
Weighted average common shares outstanding for basic earnings per common share (in shares)	43,230,016	38,152,633	41,132,043	38,060,224
Dilutive effect of stock options outstanding, using the treasury stock method (in shares)	501,354	428,665	551,001	504,910
Shares used in computing diluted earnings per common share (in shares)	43,731,370	38,581,298	41,683,044	38,565,134
Basic earnings per share (in dollars per share)	$ 0.29	$ 0.22	$ 0.54	$ 0.59
Diluted earnings per share (in dollars per share)	$ 0.28	$ 0.22	$ 0.53	$ 0.59
Number of shares not in computing diluted earnings per common share	512,261	227,409	505,686	140,659

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes			$ (9,252)
Amounts reclassified from other comprehensive income (loss), net of taxes	$ 32	$ 22	(91)	$ 71
Net current period other comprehensive income (loss), net of taxes	(1,307)	327	(7,921)	1,774
Balance at the end of the period, net of taxes	(17,173)		(17,173)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(15,866)	(6,467)	(9,252)	(7,914)
Other comprehensive income (loss) before reclassification, net of taxes	(1,339)	305	(7,830)	1,703
Amounts reclassified from other comprehensive income (loss), net of taxes	32	22	(91)	71
Net current period other comprehensive income (loss), net of taxes	(1,307)	327	(7,921)	1,774
Balance at the end of the period, net of taxes	(17,173)	(6,140)	(17,173)	(6,140)
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	(7,031)	877	(362)	(540)
Other comprehensive income (loss) before reclassification, net of taxes	(1,335)	312	(7,817)	1,725
Amounts reclassified from other comprehensive income (loss), net of taxes			(187)	4
Net current period other comprehensive income (loss), net of taxes	(1,335)	312	(8,004)	1,729
Balance at the end of the period, net of taxes	(8,366)	1,189	(8,366)	1,189
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	359	321	375	336
Amounts reclassified from other comprehensive income (loss), net of taxes	(8)	(7)	(24)	(22)
Net current period other comprehensive income (loss), net of taxes	(8)	(7)	(24)	(22)
Balance at the end of the period, net of taxes	351	314	351	314
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(9,194)	(7,665)	(9,265)	(7,710)
Other comprehensive income (loss) before reclassification, net of taxes	(4)	(7)	(13)	(22)
Amounts reclassified from other comprehensive income (loss), net of taxes	40	29	120	89
Net current period other comprehensive income (loss), net of taxes	36	22	107	67
Balance at the end of the period, net of taxes	$ (9,158)	$ (7,643)	$ (9,158)	$ (7,643)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Amount Reclassified from AOCI
Gain (loss) on sales of securities			$ 266	$ (6)
Interest income on taxable securities	$ 3,483	$ 3,596	11,112	9,916
Income tax expense	(4,979)	(5,249)	(8,186)	(13,752)
Net income	12,375	8,583	22,099	22,570
Income before income tax	17,354	13,832	30,285	36,322
Net of tax	(32)	(22)	91	(71)
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Amount Reclassified from AOCI
Net of tax			187	(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			266	(6)
Income tax expense			(79)	2
Net of tax			187	(4)
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Amount Reclassified from AOCI
Net of tax	8	7	24	22
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	12	33	38
Income tax expense	(3)	(5)	(9)	(16)
Net of tax	8	7	24	22
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	(40)	(29)	(120)	(89)
Defined Benefit Pension Plan Items | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Salaries and employee benefits	(57)	(51)	(171)	(154)
Income tax benefit	17	22	51	65
Net of tax	(40)	(29)	(120)	(89)
Prior transition obligation | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Salaries and employee benefits	16	18	48	53
Actuarial losses | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Salaries and employee benefits	(73)	(69)	(219)	(207)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax	$ (32)	$ (22)	$ 91	$ (71)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Securities available-for-sale:
Amortized Cost	$ 331,728	$ 393,339
Gross Unrealized Gains	18	2,905
Gross Unrealized (Losses)	(12,675)	(4,392)
Total	319,071	391,852
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	324,309	378,339
Gross Unrealized Gains	18	786
Gross Unrealized (Losses)	(12,662)	(4,392)
Total	311,665	374,733
Trust preferred securities
Securities available-for-sale:
Amortized Cost		15,000
Gross Unrealized Gains		2,119
Total		$ 17,119
U.S. Government sponsored entities
Securities available-for-sale:
Amortized Cost	7,419
Gross Unrealized (Losses)	(13)
Total	$ 7,406

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Securities held-to-maturity:
Amortized Cost	$ 375,732	$ 398,341
Gross Unrealized Gains	242	952
Gross Unrealized (Losses)	(16,276)	(5,001)
Estimated Fair Value	359,698	394,292
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	288,594	309,616
Gross Unrealized Gains		6
Gross Unrealized (Losses)	(12,778)	(4,394)
Estimated Fair Value	275,816	305,228
U.S. Government sponsored entities
Securities held-to-maturity:
Gross Unrealized (Losses)	(13)
Municipals - exempt from Federal tax
Securities held-to-maturity:
Amortized Cost	87,138	88,725
Gross Unrealized Gains	242	946
Gross Unrealized (Losses)	(3,498)	(607)
Estimated Fair Value	$ 83,882	$ 89,064

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale, Fair Value
Less Than 12 Months	$ 83,927	$ 185,824
12 Months or More	231,110	146,670
Total	315,037	332,494
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(2,303)	(1,623)
12 Months or More	(10,372)	(2,769)
Total	(12,675)	(4,392)
Agency mortgage-backed securities
Available-for-sale, Fair Value
Less Than 12 Months	76,522	185,824
12 Months or More	231,110	146,670
Total	307,632	332,494
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(2,290)	(1,623)
12 Months or More	(10,372)	(2,769)
Total	$ (12,662)	$ (4,392)

Securities - Securities with _2

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Held-to-maturity, Fair Value
Less Than 12 Months	$ 104,793	$ 186,598
12 Months or More	236,504	149,999
Total	341,297	336,597
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(3,635)	(1,550)
12 Months or More	(12,641)	(3,451)
Total	(16,276)	(5,001)
Agency mortgage-backed securities
Held-to-maturity, Fair Value
Less Than 12 Months	71,766	168,439
12 Months or More	203,293	130,759
Total	275,059	299,198
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(2,639)	(1,368)
12 Months or More	(10,139)	(3,026)
Total	(12,778)	(4,394)
U.S. Government sponsored entities
Held-to-maturity, Fair Value
Less Than 12 Months	7,405
Total	7,405
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(13)
Total	(13)
Municipals - exempt from Federal tax
Held-to-maturity, Fair Value
Less Than 12 Months	33,027	18,159
12 Months or More	33,211	19,240
Total	66,238	37,399
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(996)	(182)
12 Months or More	(2,502)	(425)
Total	$ (3,498)	$ (607)

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)securityitem	Dec. 31, 2017USD ($)
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	495
Number of available for sale securities held	172
Number of held to maturity securities held	323
Number of securities with fair values below amortized cost	428
Total unrealized loss for securities 12 months or more | $	$ 23,013
12 Months or More | $	236,504	$ 149,999
Municipals - exempt from Federal tax
Additional Information
12 Months or More | $	$ 33,211	$ 19,240

Securities - Proceeds from Sale

Securities - Proceeds from Sales of Securities and the Resulting Gains and Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Proceeds from Sales of Securities and the Resulting Gains and Losses
Proceeds	$ 94,291	$ 6,536
Gross gains	1,243
Gross losses	$ (977)	$ (6)

Securities - Amortized Cost a_3

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity – Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale, Amortized Cost
Due after one year through five years	$ 7,419
Total	331,728	$ 393,339
Available-for-sale, Estimated Fair Value
Due after one year through five years	7,406
Total	319,071	391,852
U.S. Government sponsored entities
Available-for-sale, Amortized Cost
Total	7,419
Available-for-sale, Estimated Fair Value
Total	7,406
Agency mortgage-backed securities
Available-for-sale, Amortized Cost
Available-for-sale Amortized Cost	324,309
Total	324,309	378,339
Available-for-sale, Estimated Fair Value
Available-for-sale Estimated Fair value	311,665
Total	$ 311,665	$ 374,733

Securities - Amortized Cost a_4

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity – Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Held-to-maturity, Amortized Cost
Due 3 months or less	$ 503
Due after 3 months through one year	286
Due after one year through five years	4,558
Due after five years through ten years	23,713
Due after ten years	58,078
Agency mortgage-backed securities	288,594
Total	375,732	$ 398,341
Held-to-maturity, Estimated Fair Value
Due 3 months or less	503
Due after 3 months through one year	286
Due after one year through five years	4,587
Due after five years through ten years	23,417
Due after ten years	55,089
Agency mortgage-backed securities	275,816
Total	$ 359,698	$ 394,292

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($) $ in Thousands	Sep. 30, 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	$ 44,595	$ 110,874

Loans -Loans Balance (Details)

Loans -Loans Balance (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Loans held-for-investment:
Total loan balance	$ 1,899,663		$ 1,583,177
Deferred loan fees, net	(276)		(510)
Loans, net of deferred fees	1,899,387		1,582,667	$ 1,565,950
Allowance for loan losses	(27,426)	$ (26,664)	(19,658)	(19,748)	$ (19,397)	$ (19,089)
Loans, net	1,871,961		1,563,009
Commercial
Loans held-for-investment:
Total loan balance	600,594		573,296
Allowance for loan losses	(17,273)	(17,522)	(10,608)	(10,988)	(11,259)	(10,656)
Real estate
Loans held-for-investment:
Total loan balance	1,289,137		997,486
Allowance for loan losses	(10,076)	(9,020)	(8,950)	(8,640)	(7,982)	(8,327)
Real estate | Commercial
Loans held-for-investment:
Total loan balance	988,491		772,867
Real estate | Land and construction
Loans held-for-investment:
Total loan balance	131,548		100,882
Real estate | Home equity
Loans held-for-investment:
Total loan balance	116,657		79,176
Real estate | Residential mortgages
Loans held-for-investment:
Total loan balance	52,441		44,561
Consumer
Loans held-for-investment:
Total loan balance	9,932		12,395
Allowance for loan losses	(77)	$ (122)	(100)	$ (120)	$ (156)	$ (106)
Focus Business Bank
Loans held-for-investment:
Non-PCI loans acquired	43,311		$ 58,551
Tri Valley Bank
Loans held-for-investment:
Non-PCI loans acquired	115,158
United American Bank
Loans held-for-investment:
Non-PCI loans acquired	$ 193,787

Loans - Additional Information

Loans - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Oct. 31, 2018	Dec. 31, 2017
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans - held-for-investment	$ 23,342,000	$ 2,560,000	$ 23,342,000	$ 2,560,000		$ 2,250,000
Provision (credit) for loan losses	(425,000)	115,000	7,279,000	390,000
Net (charge-offs) recoveries	1,187,000	$ 236,000	489,000	269,000
Less than 30 days past due
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans - held-for-investment	22,725,000		22,725,000			$ 840,000
Borrower
Loans and Leases Receivable Disclosure [Line Items]
Specific reserve				$ 7,000,000
Borrower | Less than 30 days past due
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans - held-for-investment	$ 21,764,000		$ 21,764,000
Borrower | Subsequent Event | Less than 30 days past due
Loans and Leases Receivable Disclosure [Line Items]
30 days or greater past due nonaccrual loans					$ 17,384,000

Loans - Changes in the Allowanc

Loans - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Changes in the Allowance for Loan Losses
Beginning of period balance	$ 26,664	$ 19,397	$ 19,658	$ 19,089
Charge-offs	(744)	(111)	(1,860)	(2,179)
Recoveries	1,931	347	2,349	2,448
Net (charge-offs) recoveries	1,187	236	489	269
Provision (credit) for loan losses	(425)	115	7,279	390
End of year balance	27,426	19,748	27,426	19,748
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance	17,522	11,259	10,608	10,656
Charge-offs	(719)	(111)	(1,835)	(2,179)
Recoveries	1,897	281	2,229	1,453
Net (charge-offs) recoveries	1,178	170	394	(726)
Provision (credit) for loan losses	(1,427)	(441)	6,271	1,058
End of year balance	17,273	10,988	17,273	10,988
Real estate
Changes in the Allowance for Loan Losses
Beginning of period balance	9,020	7,982	8,950	8,327
Recoveries	34	66	120	995
Net (charge-offs) recoveries	34	66	120	995
Provision (credit) for loan losses	1,022	592	1,006	(682)
End of year balance	10,076	8,640	10,076	8,640
Consumer
Changes in the Allowance for Loan Losses
Beginning of period balance	122	156	100	106
Charge-offs	(25)		(25)
Net (charge-offs) recoveries	(25)		(25)
Provision (credit) for loan losses	(20)	(36)	2	14
End of year balance	$ 77	$ 120	$ 77	$ 120

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	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 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	$ 7,089		$ 290
Allowance for loan losses, Collectively evaluated for impairment	20,337		19,368
Total allowance balance	27,426	$ 26,664	19,658	$ 19,748	$ 19,397	$ 19,089
Loans, Individually evaluated for impairment	25,049		2,774
Loans, Collectively evaluated for impairment	1,874,614		1,580,403
Total loan balance	1,899,663		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	7,089		290
Allowance for loan losses, Collectively evaluated for impairment	10,184		10,318
Total allowance balance	17,273	17,522	10,608	10,988	11,259	10,656
Loans, Individually evaluated for impairment	18,843		1,775
Loans, Collectively evaluated for impairment	581,751		571,521
Total loan balance	600,594		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	10,076		8,950
Total allowance balance	10,076	9,020	8,950	8,640	7,982	8,327
Loans, Individually evaluated for impairment	6,206		998
Loans, Collectively evaluated for impairment	1,282,931		996,488
Total loan balance	1,289,137		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	77		100
Total allowance balance	77	$ 122	100	$ 120	$ 156	$ 106
Loans, Individually evaluated for impairment			1
Loans, Collectively evaluated for impairment	9,932		12,394
Total loan balance	$ 9,932		$ 12,395

Loans - Loans Held for Investme

Loans - Loans Held for Investment Individually Evaluated for Impairment by Class of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Unpaid Principal Balance
Total with no related allowance recorded	$ 12,452	$ 2,261
Total with an allowance recorded	12,597	589
Total	25,049	2,850
Recorded Investment
Total with no related allowance recorded	12,452	2,242
Total with an allowance recorded	12,597	532
Total	25,049	2,774	$ 3,816
Total with an allowance recorded, Allowance for Loan Losses Allocated	7,089	290
Commercial
Unpaid Principal Balance
Total with no related allowance recorded	6,246	1,243
Total with an allowance recorded	12,597	589
Recorded Investment
Total with no related allowance recorded	6,246	1,243
Total with an allowance recorded	12,597	532
Total with an allowance recorded, Allowance for Loan Losses Allocated	7,089	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	5,639	500
Recorded Investment
Total with no related allowance recorded	5,639	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	567	379
Recorded Investment
Total with no related allowance recorded	$ 567	$ 379

Loans - Interest Recognized and

Loans - Interest Recognized and Cash Basis Interest Earned on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 25,930	$ 3,547	$ 14,668	$ 3,955
Interest income during impairment		3		3
Commercial
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	19,638	2,010		2,625
Consumer
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period		1		2
Commercial | Commercial
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period			11,056
CRE | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	5,720	501	3,110	583
Land and construction | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period		641	30	419
Interest income during impairment		3		3
Home equity | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 572	$ 394	$ 472	$ 326

Loans - Nonperforming Loans (De

Loans - Nonperforming Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Nonaccrual loans - held-for-investment	$ 23,342	$ 2,250	$ 2,560
Restructured and loans over 90 days past due and still accruing	1,373	235	931
Total nonperforming loans	24,715	2,485	3,491
Other restructured loans	334	289	325
Total	$ 25,049	$ 2,774	$ 3,816

Loans - Nonperforming Loans by

Loans - Nonperforming Loans by Class (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	$ 23,342	$ 2,250	$ 2,560
Restructured and Loans Over 90 Days Past Due and Still Accruing	1,373	235	931
Total	24,715	2,485	$ 3,491
Commercial
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	17,361	1,250
Restructured and Loans Over 90 Days Past Due and Still Accruing	1,148	235
Total	18,509	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	5,639	501
Total	5,639	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	342	379
Restructured and Loans Over 90 Days Past Due and Still Accruing	225
Total	$ 567	$ 379

Loans - Aging of Past Due Loans

Loans - Aging of Past Due Loans by Class of Loans - Tabular Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 10,951	$ 6,943
Loans Not Past Due	1,888,712	1,576,234
Total loan balance	1,899,663	1,583,177
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	7,397	4,511
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,098	1,224
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,456	1,208
Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due	9,984	6,101
Loans Not Past Due	590,610	567,195
Total loan balance	600,594	573,296
Commercial | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	6,430	4,288
Commercial | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,098	1,224
Commercial | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,456	589
Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	1,289,137	997,486
Consumer
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	9,932	12,395
Total loan balance	9,932	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	988,491	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
Loans Not Past Due	988,491
Total loan balance	988,491	772,867
Land and construction | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due		119
Loans Not Past Due	131,548	100,763
Total loan balance	131,548	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	967	223
Loans Not Past Due	115,690	78,953
Total loan balance	116,657	79,176
Home equity | Real estate | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	967	223
Residential mortgages | Real estate
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	52,441	44,561
Total loan balance	$ 52,441	$ 44,561

Loans - Aging of Past Due Loa_2

Loans - Aging of Past Due Loans by Class of Loans - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater	$ 10,951	$ 6,943
Nonaccrual loans - held-for-investment	23,342	2,250	$ 2,560
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans - held-for-investment	617	1,410
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans - held-for-investment	22,725	$ 840
Borrower | Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans - held-for-investment	$ 21,764

Loans - Credit Quality Indicato

Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans
Balance to report	$ 1,871,961	$ 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	Sep. 30, 2018	Dec. 31, 2017
Loans
Total	$ 1,899,663	$ 1,583,177
Borrower
Loans
Lending relationship loans	21,764	12,500
Nonclassified
Loans
Total	1,869,117	1,558,105
Classified
Loans
Total	30,546	25,072
Commercial
Loans
Total	600,594	573,296
Commercial | Nonclassified
Loans
Total	577,325	554,913
Commercial | Classified
Loans
Total	23,269	18,383
Real estate
Loans
Total	1,289,137	997,486
Real estate | Commercial
Loans
Total	988,491	772,867
Real estate | CRE
Loans
Total	988,491	772,867
Real estate | CRE | Nonclassified
Loans
Total	982,852	766,988
Real estate | CRE | Classified
Loans
Total	5,639	5,879
Real estate | Land and construction
Loans
Total	131,548	100,882
Real estate | Land and construction | Nonclassified
Loans
Total	131,548	100,763
Real estate | Land and construction | Classified
Loans
Total		119
Real estate | Home equity
Loans
Total	116,657	79,176
Real estate | Home equity | Nonclassified
Loans
Total	115,019	78,486
Real estate | Home equity | Classified
Loans
Total	1,638	690
Real estate | Residential mortgages
Loans
Total	52,441	44,561
Real estate | Residential mortgages | Nonclassified
Loans
Total	52,441	44,561
Consumer
Loans
Total	9,932	12,395
Consumer | Nonclassified
Loans
Total	$ 9,932	12,394
Consumer | Classified
Loans
Total		$ 1

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Loans
Recorded investment of troubled debt restructurings	$ 676,000	$ 325,000
Troubled debt restructurings, nonaccrual loans		16,000
Troubled debt restructurings, accruing loans		309,000
Specific reserves	$ 46,000	$ 1,000

Loans - Troubled Debt Restruc_2

Loans - Troubled Debt Restructurings by Class (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)contract	Sep. 30, 2017USD ($)contract
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract	3	3
Pre-modification Outstanding Recorded Investment	$ 384	$ 318
Post-modification Outstanding Recorded Investment	$ 384	$ 318
Commercial
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract	2	3
Pre-modification Outstanding Recorded Investment	$ 159	$ 318
Post-modification Outstanding Recorded Investment	$ 159	$ 318
Home equity
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract	1
Pre-modification Outstanding Recorded Investment	$ 225
Post-modification Outstanding Recorded Investment	$ 225

Loans - Defaults on Troubled De

Loans - Defaults on Troubled Debt Restructurings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018loanitem	Sep. 30, 2017item	Sep. 30, 2018USD ($)contractitem	Sep. 30, 2017contractitem
Loans
Number of troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven | loan	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 | contract			3	3
Default period contractually past due under modified terms (in days)			30 days
Number of defaults on troubled debt restructurings | item	0	0	0	0
Period of consecutive payments (in months)			6 months

Business Combinations - Tri-Val

Business Combinations - Tri-Valley (Details)	Apr. 06, 2018USD ($)$ / sharesshares	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	May 04, 2018$ / shares	Dec. 31, 2017USD ($)
Business Combinations
Gain (loss) on sales of securities		$ 266,000	$ (6,000)
Stock price (in dollars per share) | $ / shares				$ 16.73
Assets acquired:
Loans		336,446,000
Other assets, net		14,736,000
Liabilities assumed:
Deposits		416,628,000
Other liabilities		3,037,000
Other borrowings		62,000
Goodwill recorded in the merger		$ 83,752,000	$ 45,664,000		$ 45,664,000
Tri Valley Bank
Business Combinations
Disposition of other real estate owned	$ 1,132,000
Gain (loss) on sales of securities	53,000
Cash paid for invoices after closing for services prior to closing	29,000
Cash paid for fractional shares	3,000
Cash paid for transaction adjustment to prepaid assets included in other assets	1,592,000
Aggregate transaction value	$ 32,320,000
Shares issued in acquisition | shares	1,889,613
Fixed exchange ratio of company's common stock	0.0489
Stock price (in dollars per share) | $ / shares	$ 16.26
Total cash paid	$ 1,595,000
Issuance of 1,889,613 shares of common stock to Tri-Valley shareholders at $16.26 per share	30,725,000
Total Consideration Paid	$ 32,320,000
Amortized intangible assets	11 years
Assets acquired:
Cash and cash equivalents	$ 22,910,000
Loans	120,969,000
Other intangible assets	1,978,000
Other assets, net	7,045,000
Total assets acquired	152,902,000
Liabilities assumed:
Deposits	135,388,000
Other liabilities	608,000
Total liabilities assumed	135,996,000
Net assets acquired	16,906,000
Purchase price	30,725,000
Goodwill recorded in the merger	13,819,000
Tri Valley Bank | As Recorded
Assets acquired:
Cash and cash equivalents	21,757,000
Loans	123,532,000
Allowance for loan losses	(1,969,000)
Other assets, net	9,939,000
Total assets acquired	153,259,000
Liabilities assumed:
Deposits	135,351,000
Other liabilities	608,000
Total liabilities assumed	135,959,000
Tri Valley Bank | Fair Value Adjustments
Assets acquired:
Cash and cash equivalents	1,153,000
Loans	(2,563,000)
Allowance for loan losses	1,969,000
Other intangible assets	1,978,000
Other assets, net	(2,894,000)
Total assets acquired	(357,000)
Liabilities assumed:
Deposits	37,000
Total liabilities assumed	37,000
Warrant | Tri Valley Bank
Business Combinations
Total cash paid	889,000
Options | Tri Valley Bank
Business Combinations
Total cash paid	615,000
Other | Tri Valley Bank
Business Combinations
Total cash paid	$ 91,000

Business Combinations - United

Business Combinations - United American (Details)	May 04, 2018USD ($)$ / sharesshares	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)
Business Combinations
Stock price (in dollars per share) | $ / shares	$ 16.73
Assets acquired:
Securities available-for-sale		$ 63,723,000
Net loans		336,446,000
Premises and equipment, net		350,000
Other assets, net		14,736,000
Liabilities assumed:
Deposits		416,628,000
Other borrowings		62,000
Other liabilities		3,037,000
Goodwill recorded in the merger		$ 83,752,000	$ 45,664,000	$ 45,664,000
United American Bank
Business Combinations
Aggregate transaction value	$ 56,417,000
Fixed exchange ratio of company's common stock	2.1644
Shares issued in acquisition | shares	2,826,032
Total cash paid	$ 9,137,000
Issuance of 2,826,032 shares of common stock to United American shareholders at $16.73 per share	47,280,000
Total Consideration Paid	56,417,000
Loan participations repurchase	23,732,000
Cash paid for invoices after closing for services prior to closing	51,000
Tax refund	$ 400,000
Amortized intangible assets	3 years
Assets acquired:
Cash and cash equivalents	$ 13,118,000
Securities available-for-sale	63,723,000
Net loans	215,477,000
Other intangible assets	6,383,000
Other assets, net	8,041,000
Total assets acquired	306,742,000
Liabilities assumed:
Deposits	281,240,000
Other borrowings	62,000
Other liabilities	2,429,000
Total liabilities assumed	283,731,000
Net assets acquired	23,011,000
Purchase price	47,280,000
Goodwill recorded in the merger	24,269,000
Fair value adjustments:
Loans receivable fair value adjustment	4,680,000
Charge-off	269,000
United American Bank | As Recorded
Assets acquired:
Cash and cash equivalents	45,638,000
Securities available-for-sale	64,144,000
Net loans	196,694,000
Allowance for loan losses	(2,952,000)
Other assets, net	9,119,000
Total assets acquired	312,643,000
Liabilities assumed:
Deposits	281,189,000
Other borrowings	62,000
Other liabilities	2,617,000
Total liabilities assumed	283,868,000
Series A Preferred Stock | United American Bank
Business Combinations
Total cash paid	8,700,000
Series B Preferred Stock | United American Bank
Business Combinations
Total cash paid	$ 435,000
Series A and Series B Preferred Stock | United American Bank
Business Combinations
Cash issued per share | $ / shares	$ 1,000
Other | United American Bank
Business Combinations
Total cash paid	$ 2,000
Fair Value Adjustments | United American Bank
Assets acquired:
Cash and cash equivalents	(32,520,000)
Securities available-for-sale	(421,000)
Net loans	18,783,000
Allowance for loan losses	2,952,000
Other intangible assets	6,383,000
Other assets, net	(1,078,000)
Total assets acquired	(5,901,000)
Liabilities assumed:
Deposits	51,000
Other liabilities	(188,000)
Total liabilities assumed	$ (137,000)

Business Combinations (Details)

Business Combinations (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)company	Sep. 30, 2018USD ($)company
Business Combinations
Number of business banking franchises acquired | company	3	3
Combined business value after business combination	$ 3,200,000	$ 3,200,000
Acquisition and integration related costs	16	5,452
Severance and retention expense	183	3,576
Business combination one time pre-tax severance, retention, acquisition and integration costs	$ 199	$ 9,028

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	May 04, 2018	Apr. 06, 2018	Dec. 31, 2017	Sep. 30, 2017
Goodwill
Goodwill	$ 83,752			$ 45,664	$ 45,664
Goodwill acquired	38,088
BVF/CSNK
Goodwill
Goodwill acquired	13,045
Focus Business Bank
Goodwill
Goodwill acquired	32,619
Tri Valley Bank
Goodwill
Goodwill			$ 13,819
Goodwill acquired	13,819
United American Bank
Goodwill
Goodwill		$ 24,269
Goodwill acquired	$ 24,269

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	May 04, 2018	Apr. 06, 2018	May 31, 2018	Apr. 30, 2018	Aug. 31, 2015	Nov. 30, 2014	Sep. 30, 2018	Dec. 31, 2017
Other Intangible Assets
Accumulated amortization							$ 2,576	$ 1,995
United American Bank
Other Intangible Assets
Accumulated amortization							$ 469
Useful life, amortization period	3 years
United American Bank | Core deposit
Other Intangible Assets
Intangible assets acquired			$ 5,723
Useful life, amortization period			10 years
United American Bank | Below market-value lease
Other Intangible Assets
Intangible assets acquired			$ 660
Useful life, amortization period			3 years				3 years
Tri Valley Bank
Other Intangible Assets
Accumulated amortization							$ 143
Useful life, amortization period		11 years
Tri Valley Bank | Core deposit
Other Intangible Assets
Intangible assets acquired				$ 1,768
Useful life, amortization period				10 years
Tri Valley Bank | Below market-value lease
Other Intangible Assets
Intangible assets acquired				$ 210
Useful life, amortization period				11 years			11 years
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							$ 743	$ 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 Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands	Sep. 30, 2018USD ($)
Estimated Amortization Expense
2,018	$ 1,942
2,019	2,214
2,020	2,032
2,021	1,590
2,022	1,430
2,023	1,307
Thereafter	3,437
Total	13,952
United American Bank | Core deposit
Estimated Amortization Expense
2,018	585
2,019	777
2,020	665
2,021	602
2,022	553
2,023	521
Thereafter	2,020
Total	5,723
United American Bank | Below market-value lease
Estimated Amortization Expense
2,018	170
2,019	255
2,020	235
Total	660
Tri Valley Bank | Core deposit
Estimated Amortization Expense
2,018	208
2,019	240
2,020	208
2,021	184
2,022	167
2,023	158
Thereafter	603
Total	1,768
Tri Valley Bank | Below market-value lease
Estimated Amortization Expense
2,018	14
2,019	18
2,020	18
2,021	18
2,022	18
2,023	18
Thereafter	106
Total	210
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	549
Total	4,292
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 Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 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	9 Months Ended	12 Months Ended
	Sep. 30, 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	$ 28,143	$ 16,247
Valuation allowance for deferred tax assets	$ 0	$ 0

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Income Taxes
Low income housing investments	$ 3,139	$ 3,411
Future commitments	$ 287	$ 302

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments $ in Thousands	Sep. 30, 2018USD ($)
Future Commitments
2,018	$ 15
2019 through 2023	$ 272

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Taxes
Low income housing tax credits	$ 106	$ 110	$ 319	$ 329
Low income housing investment losses	$ 117	$ 115	$ 351	$ 345

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details) $ in Thousands	Sep. 30, 2018USD ($)
Supplemental Retirement Plan
Supplemental Retirement Plan
Plan assets associated with the plan	$ 0

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 62	$ 81	$ 186	$ 243
Interest cost	237	259	711	777
Amortization of net actuarial loss	73	69	219	207
Net periodic benefit cost	372	409	1,116	1,227
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Interest cost	56	61	170	182	$ 243
Amortization of prior transition obligation	(16)	(18)	(48)	(53)
Net periodic benefit cost	$ 40	$ 43	$ 122	$ 129

Benefit Plans - Defined Benef_3

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Change in projected benefit obligation:
Projected benefit obligation at beginning of year			$ 6,711	$ 6,301	$ 6,301
Interest cost	$ 56	$ 61	170	$ 182	243
Actuarial (gain) loss					167
Projected benefit obligation at end of period	$ 6,881		$ 6,881		$ 6,711

Benefit Plans - Defined Benef_4

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 2,569	$ 2,453
Prior transition obligation	1,171	1,238
Accumulated other comprehensive loss	$ 3,740	$ 3,691

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 319,071	$ 391,852
I/O strip receivables	863	968
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	311,665	374,733
Trust preferred securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale		17,119
U.S. Government sponsored entities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	7,406
Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	863	968
Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	311,665	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
Significant Other Observable Inputs (Level 2) | U.S. Government sponsored entities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	7,406
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 Assets_2

Fair Value - Financial Assets and Liabilities Measured on a Non-Recurring Basis (Details) - Non-recurring basis - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 5,508	$ 361
Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	5,508	361
Commercial | Commercial
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	5,508	242
Commercial | Commercial | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 5,508	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	Sep. 30, 2018	Dec. 31, 2017
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 25,049	$ 2,774
Carried at fair value
Impaired Loans Held-for-investment
Impaired loans held-for-investment	12,597	651
Specific valuation allowance	(7,089)	(290)
Impaired loans held-for-investment carried at fair value, net	5,508	361
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 12,452	$ 2,123

Fair Value - Impaired Loans H_2

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 25,049	$ 2,774
Additional provision (credit) for loan losses	7,042	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	12,597	651
Specific valuation allowance	7,089	290
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 12,452	$ 2,123

Fair Value - Quantitative Infor

Fair Value - Quantitative Information about Level 3 Fair Value Measurements (Details) - Non-recurring basis $ in Thousands	Sep. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item
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	$ 5,508	$ 361
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	$ 5,508	$ 361
Commercial | Significant Unobservable Inputs (Level 3) | 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 - Impaired loan held for investment (as a percent) | item	0.01	0.01
Commercial | Commercial
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	$ 5,508	$ 242
Commercial | Commercial | 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	$ 5,508	242
Land and construction | Real estate
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 | 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
Real estate, Fair value		$ 119
Measurement input for real estate		us-gaap:MeasurementInputDiscountRateMember
Valuation technique for measuring real estate		us-gaap:MarketApproachValuationTechniqueMember
Land and construction | Real estate | Significant Unobservable Inputs (Level 3) | 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 - Real Estate (as a percent) | item		0.01

Fair Value - Carrying Amounts a

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Securities available-for-sale	$ 319,071	$ 391,852
Securities held-to-maturity	359,698	394,292
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	25,210	17,911
I/O strips receivables	863	968
Liabilities
Subordinated Debt.	39,322	39,183
Significant Other Observable Inputs (Level 2)
Assets
I/O strips receivables	863	968
Carrying amount
Assets
Cash and cash equivalents	381,029	316,222
Securities available-for-sale	319,071	391,852
Securities held-to-maturity	375,732	398,341
Loans (including loans held-for-sale), net	1,878,305	1,566,428
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	25,210	17,911
Accrued interest receivable	9,213	7,985
I/O strips receivables	863	968
Liabilities
Time deposits	155,879	194,561
Other deposits	2,589,420	2,288,428
Subordinated Debt.	39,322	39,183
Accrued interest payable	1,026	389
Carried at fair value
Assets
Cash and cash equivalents	381,029	316,222
Securities available-for-sale	319,071	391,852
Securities held-to-maturity	359,698	394,292
Loans (including loans held-for-sale), net	1,846,575	1,511,386
Accrued interest receivable	9,213	7,985
I/O strips receivables	863	968
Liabilities
Time deposits	156,206	194,844
Other deposits	2,589,420	2,288,428
Subordinated Debt.	39,322	40,384
Accrued interest payable	1,026	389
Carried at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	381,029	316,222
Carried at fair value | Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	319,071	391,852
Securities held-to-maturity	359,698	394,292
Loans (including loans held-for-sale), net	6,344	3,419
Accrued interest receivable	2,327	2,423
I/O strips receivables	863	968
Liabilities
Time deposits	156,206	194,844
Other deposits	2,589,420	2,288,428
Subordinated Debt.	39,322	40,384
Accrued interest payable	1,026	389
Carried at fair value | Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	1,840,231	1,507,967
Accrued interest receivable	$ 6,886	$ 5,562

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	9 Months Ended
	Sep. 30, 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	1,186,800
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)	97,818
Nonqualified stock options
Equity Plan
Number of equity awards issued (in shares)	305,500

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Number of Shares
Outstanding at the beginning of the period (in shares)	1,602,732
Granted (in shares)	305,500
Exercised (in shares)	(259,770)
Forfeited or expired (in shares)	(84,079)
Outstanding at the end of the period (in shares)	1,564,383
Vested or expected to vest (in shares)	1,470,520
Exercisable at the end of the period (in shares)	1,011,193
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 9.54
Granted (in dollars per share) | $ / shares	16.82
Exercised (in dollars per share) | $ / shares	9.62
Forfeited or expired (in dollars per share) | $ / shares	14.20
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 10.69
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	6 years 7 months 21 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	6 years 7 months 21 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	5 years 5 months 16 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars) | $	$ 7,176,631
Aggregate Intrinsic Value - Vested or expected to vest (in dollars) | $	6,746,033
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars) | $	$ 6,475,976

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	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Information Related to the Equity Plans
Cash received from option exercise	$ 2,499	$ 1,352
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	1,767,884	1,331,528
Cash received from option exercise	2,499,481	1,352,236
Tax benefit realized from option exercises	$ 513,901	$ 543,654
Weighted average fair value of options granted (in dollars per share)	$ 3.07	$ 2.66

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Stock Options (Details) - Options $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,499
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 9 months 18 days

Equity Plan - Assumptions Used

Equity Plan - Assumptions Used to Estimate Fair Value (Details)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Assumptions Used to Estimate Fair Value
Expected life in months	72 months	72 months
Options
Assumptions Used to Estimate Fair Value
Volatility (as a percent)	21.00%	24.00%
Weighted average risk-free interest rate (as a percent)	2.87%	1.94%
Expected dividends (as a percent)	2.62%	2.78%

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) | shares	181,185
Granted (in shares) | shares	97,818
Vested (in shares) | shares	(67,015)
Forfeited or expired (in shares) | shares	(2,440)
Nonvested shares at the end of the period (in shares) | shares	209,548
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) | $ / shares	$ 11.66
Granted (in dollars per share) | $ / shares	16.83
Vested (in dollars per share) | $ / shares	16.69
Forfeited or expired (in dollars per share) | $ / shares	12.65
Nonvested shares at the end of the period (in dollars per share) | $ / shares	$ 11.04

Equity Plan - Unrecognized Co_2

Equity Plan - Unrecognized Compensation Cost - Nonvested Restricted Stock Awards (Details) - Restricted stock $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 2,386
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	2 years 8 months 1 day

Subordinated Debt (Details)

Subordinated Debt (Details) - USD ($)	Jun. 01, 2022	Sep. 30, 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)	9 Months Ended	12 Months Ended
	Sep. 30, 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	Sep. 30, 2018	Dec. 31, 2017
Total Capital (to risk-weighted assets)
Actual, Amount	$ 334,152	$ 288,754
Required For Capital Adequacy Purposes, Amount	$ 228,973	$ 185,338
Actual, Ratio (as a percent)	14.40%	14.40%
Required For Capital Adequacy Purposes, Ratio (as a percent)	9.875%	9.25%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 266,654	$ 229,258
Required For Capital Adequacy Purposes, Amount	$ 182,599	$ 145,265
Actual, Ratio (as a percent)	11.50%	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	$ 266,654	$ 229,258
Required For Capital Adequacy Purposes, Amount	$ 147,818	$ 115,210
Actual, Ratio (as a percent)	11.50%	11.40%
Required For Capital Adequacy Purposes, Ratio (as a percent)	6.375%	5.75%
Tier 1 Capital (to average assets)
Actual, Amount	$ 266,654	$ 229,258
Required For Capital Adequacy Purposes, Amount	$ 124,005	$ 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	$ 310,636	$ 265,102
To Be Well Capitalized Under Regulatory Requirements, Amount	231,696	200,274
Required For Capital Adequacy Purposes, Amount	$ 228,800	$ 185,253
Actual, Ratio (as a percent)	13.40%	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	$ 282,460	$ 244,790
To Be Well Capitalized Under Regulatory Requirements, Amount	185,357	160,219
Required For Capital Adequacy Purposes, Amount	$ 182,461	$ 145,198
Actual, Ratio (as a percent)	12.20%	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	$ 282,460	$ 244,790
To Be Well Capitalized Under Regulatory Requirements, Amount	150,602	130,178
Required For Capital Adequacy Purposes, Amount	$ 147,706	$ 115,157
Actual, Ratio (as a percent)	12.20%	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	$ 282,460	$ 244,790
To Be Well Capitalized Under Regulatory Requirements, Amount	154,920	143,655
Required For Capital Adequacy Purposes, Amount	$ 123,936	$ 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 ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Cash dividend
Subordinated Debt.	$ 39,322,000	$ 39,322,000	$ 39,183,000
HBC (Wholly-owned Subsidiary)
Cash dividend
Cash dividend available	26,057,000	26,057,000
Dividends paid to parent company	$ 5,000,000	$ 13,000,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 852		$ 2,364
Non-interest Income Out-of-scope of Topic 606	1,354		4,817
Total noninterest income	2,206	$ 2,460	7,181	$ 7,048
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606		795		2,284
Non-interest Income Out-of-scope of Topic 606		1,665		4,764
Total noninterest income		2,460		7,048
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	551		1,524
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		510		1,449
Interchange fees
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	83		239
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		75		208
Merchant services revenue
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	39		122
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		44		129
Other
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 179		$ 479
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606		$ 166		$ 498

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Salaries and employee benefits	$ 10,719,000	$ 9,071,000	$ 35,302,000	$ 27,766,000
Occupancy and equipment	1,559,000	1,142,000	3,927,000	3,426,000
Professional fees	721,000	695,000	1,116,000	2,439,000
Amortization of intangible assets	631,000	296,000	1,336,000	1,083,000
Software subscriptions	555,000	475,000	1,747,000	1,333,000
Data processing	525,000	411,000	1,501,000	1,080,000
Insurance expense	430,000	401,000	1,236,000	1,123,000
Acquisition and integration related costs	16,000		5,452,000
Other	2,572,000	2,343,000	6,963,000	7,166,000
Total noninterest expense	17,728,000	$ 14,834,000	58,580,000	$ 45,416,000
Severance and retention expense	183,000		3,576,000
Tri Valley and United American
Severance and retention expense	$ 183,000		$ 3,576,000

Business Segment Information -

Business Segment Information - Business Segments (Details)	9 Months Ended
	Sep. 30, 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 _2

Business Segment Information - Operating Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Operating Income
Interest income	$ 34,610	$ 27,955	$ 94,467	$ 78,759
Total interest expense	2,159	1,634	5,504	3,679
Net interest income	32,451	26,321	88,963	75,080
Provision (credit) for loan losses	(425)	115	7,279	390
Net interest income after provision	32,876	26,206	81,684	74,690
Noninterest income	2,206	2,460	7,181	7,048
Noninterest expense	17,728	14,834	58,580	45,416
Income before income taxes	17,354	13,832	30,285	36,322
Income tax expense	4,979	5,249	8,186	13,752
Net income	12,375	8,583	22,099	22,570
Total assets	3,192,910	2,843,948	3,192,910	2,843,948	$ 2,843,452
Loans, net of deferred fees	1,899,387	1,565,950	1,899,387	1,565,950	1,582,667
Goodwill	83,752	45,664	83,752	45,664	$ 45,664
Business Combination One time pre-tax severance, retention, acquisition and integration costs	199		9,028
Banking
Operating Income
Interest income	30,425	24,805	83,781	70,146
Intersegment interest allocations	601	284	1,304	786
Total interest expense	2,159	1,634	5,504	3,679
Net interest income	28,867	23,455	79,581	67,253
Provision (credit) for loan losses	(671)	107	6,958	372
Net interest income after provision	29,538	23,348	72,623	66,881
Noninterest income	2,011	2,101	6,628	6,153
Noninterest expense	16,045	13,149	53,813	40,152
Intersegment expense allocations	172	130	574	392
Income before income taxes	15,676	12,430	26,012	33,274
Income tax expense	4,483	4,660	6,923	12,472
Net income	11,193	7,770	19,089	20,802
Total assets	3,107,897	2,776,262	3,107,897	2,776,262
Loans, net of deferred fees	1,828,379	1,517,186	1,828,379	1,517,186
Goodwill	70,708	32,620	70,708	32,620
Business Combination One time pre-tax severance, retention, acquisition and integration costs	199,000		9,028
Factoring
Operating Income
Interest income	4,185	3,150	10,686	8,613
Intersegment interest allocations	(601)	(284)	(1,304)	(786)
Net interest income	3,584	2,866	9,382	7,827
Provision (credit) for loan losses	246	8	321	18
Net interest income after provision	3,338	2,858	9,061	7,809
Noninterest income	195	359	553	895
Noninterest expense	1,683	1,685	4,767	5,264
Intersegment expense allocations	(172)	(130)	(574)	(392)
Income before income taxes	1,678	1,402	4,273	3,048
Income tax expense	496	589	1,263	1,280
Net income	1,182	813	3,010	1,768
Total assets	85,013	67,686	85,013	67,686
Loans, net of deferred fees	71,008	48,764	71,008	48,764
Goodwill	$ 13,044	$ 13,044	$ 13,044	$ 13,044

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Oct. 25, 2018	Sep. 30, 2018	Sep. 30, 2017
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 0.33	$ 0.30
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.11