Heritage Commerce (HTBK) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 28, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	HERITAGE COMMERCE CORP
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,200,262
Entity Central Index Key	0001053352
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 48,121	$ 30,273
Other investments and interest-bearing deposits in other financial institutions	367,662	134,295
Total cash and cash equivalents	415,783	164,568
Securities available-for-sale, at fair value	333,101	459,043
Securities held-to-maturity, at amortized cost (fair value of $343,129 at September 30, 2019 and $366,175 at December 31, 2018)	342,033	377,198
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	3,571	2,649
Loans, net of deferred fees	1,875,387	1,886,405
Allowance for loan losses	(25,895)	(27,848)
Loans, net	1,849,492	1,858,557
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	25,231	25,216
Company-owned life insurance	62,858	61,859
Premises and equipment, net	6,849	7,137
Goodwill	83,753	83,753
Other intangible assets	10,346	12,007
Accrued interest receivable and other assets	49,454	44,575
Total assets	3,182,471	3,096,562
Deposits:
Demand, noninterest-bearing	1,094,953	1,021,582
Demand, interest-bearing	666,054	702,000
Savings and money market	761,471	754,277
Time deposits - under $250	53,560	58,661
Time deposits - $250 and over	95,543	86,114
CDARS - interest-bearing demand, money market and time deposits	17,409	14,898
Total deposits	2,688,990	2,637,532
Subordinated debt, net of issuance costs	39,507	39,369
Accrued interest payable and other liabilities	58,628	52,195
Total liabilities	2,787,125	2,729,096
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at September 30, 2019 and December 31, 2018
Common stock, no par value; 100,000,000 shares authorized at September 30, 2019 and 60,000,000 shares authorized at December 31, 2018; 43,509,406 shares issued and outstanding at September 30, 2019 and 43,288,750 shares issued and outstanding at December 31, 2018	302,983	300,844
Retained earnings	98,161	79,003
Accumulated other comprehensive loss	(5,798)	(12,381)
Total shareholders' equity	395,346	367,466
Total liabilities and shareholders' equity	$ 3,182,471	$ 3,096,562

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities held-to-maturity
Securities held-to-maturity, fair value (in dollars)	$ 343,129	$ 366,175
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	100,000,000	60,000,000
Common stock, shares issued	43,509,406	43,288,750
Common stock, shares outstanding	43,509,406	43,288,750

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income:
Loans, including fees	$ 27,264	$ 28,632	$ 81,321	$ 77,271
Securities, taxable	3,504	3,483	12,149	11,112
Securities, exempt from Federal tax	530	555	1,624	1,675
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	1,952	1,940	5,094	4,409
Total interest income	33,250	34,610	100,188	94,467
Interest expense:
Deposits	2,042	1,575	5,873	3,772
Subordinated debt	583	583	1,731	1,731
Other borrowings		1	1	1
Total interest expense	2,625	2,159	7,605	5,504
Net interest income before provision for loan losses	30,625	32,451	92,583	88,963
Provision (credit) for loan losses	(576)	(425)	(2,377)	7,279
Net interest income after provision for loan losses	31,201	32,876	94,960	81,684
Noninterest income:
Service charges and fees on deposit accounts	1,032	1,107	3,370	2,981
Increase in cash surrender value of life insurance	336	216	999	816
Gain on sales of securities	330		878	266
Gain on sales of SBA loans	156	236	331	551
Servicing income	139	163	480	533
Other	625	484	1,793	2,034
Total noninterest income	2,618	2,206	7,851	7,181
Noninterest expense:
Salaries and employee benefits	10,467	10,719	31,935	35,302
Occupancy and equipment	1,550	1,559	4,634	3,927
Professional fees	789	721	2,360	1,116
Other	5,103	4,729	15,343	18,235
Total noninterest expense	17,909	17,728	54,272	58,580
Income before income taxes	15,910	17,354	48,539	30,285
Income tax expense	4,633	4,979	13,763	8,186
Net income	$ 11,277	$ 12,375	$ 34,776	$ 22,099
Earnings per common share:
Basic (in dollars per share)	$ 0.26	$ 0.29	$ 0.81	$ 0.54
Diluted (in dollars per share)	$ 0.26	$ 0.28	$ 0.80	$ 0.53

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 11,277	$ 12,375	$ 34,776	$ 22,099
Other comprehensive income:
Change in net unrealized holding (losses) gains on available-for-sale securities and I/O strips	1,041	(1,880)	10,245	(11,009)
Deferred income taxes	(304)	545	(3,032)	3,192
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity	(13)	(11)	(52)	(33)
Deferred income taxes	4	3	16	9
Reclassification adjustment for gains realized in income	(330)		(878)	(266)
Deferred income taxes	98		260	79
Change in unrealized (losses) gains on securities and I/O strips, net of deferred income taxes	496	(1,343)	6,559	(8,028)
Change in net pension and other benefit plan liability adjustment	11	51	34	152
Deferred income taxes	(3)	(15)	(10)	(45)
Change in pension and other benefit plan liability, net of deferred income taxes	8	36	24	107
Other comprehensive income (loss)	504	(1,307)	6,583	(7,921)
Total comprehensive income	$ 11,781	$ 11,068	$ 41,359	$ 14,178

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, 2017			$ 218,355	$ 62,136	$ (9,252)			$ 271,239
Balance (in shares) at Dec. 31, 2017			38,200,883
Increase (Decrease) in Shareholders' Equity
Net income				8,809				8,809
Other comprehensive income (loss)					(5,704)			(5,704)
Amortization of restricted stock awards, net of forfeitures and taxes			$ 228					228
Cash dividend declared				(4,206)				(4,206)
Stock option expense, net of forfeitures and taxes			176					176
Stock options exercised			$ 449					449
Stock options exercised (in shares)			68,906
Balance at Mar. 31, 2018			$ 219,208	66,739	(14,956)			270,991
Balance (in shares) at Mar. 31, 2018			38,269,789
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
Other comprehensive income (loss)					(7,921)			(7,921)
Balance at Sep. 30, 2018			$ 300,208	70,531	(17,173)			353,566
Balance (in shares) at Sep. 30, 2018			43,271,676
Balance at Mar. 31, 2018			$ 219,208	66,739	(14,956)			270,991
Balance (in shares) at Mar. 31, 2018			38,269,789
Increase (Decrease) in Shareholders' Equity
Net income				915				915
Other comprehensive income (loss)					(910)			(910)
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)			97,818
Amortization of restricted stock awards, net of forfeitures and taxes			$ 283					283
Cash dividend declared				(4,743)				(4,743)
Stock option expense, net of forfeitures and taxes			175					175
Stock options exercised			$ 1,553					1,553
Stock options exercised (in shares)			138,932
Balance at Jun. 30, 2018			$ 299,224	62,911	(15,866)			346,269
Balance (in shares) at Jun. 30, 2018			43,222,184
Increase (Decrease) in Shareholders' Equity
Net income				12,375				12,375
Other comprehensive income (loss)					(1,307)			(1,307)
Issuance of restricted stock awards, net (in shares)			2,440
Amortization of restricted stock awards, net of forfeitures and taxes			$ 303					303
Cash dividend declared				(4,755)				(4,755)
Stock option expense, net of forfeitures and taxes			184					184
Stock options exercised			$ 497					497
Stock options exercised (in shares)			51,932
Balance at Sep. 30, 2018			$ 300,208	70,531	(17,173)			353,566
Balance (in shares) at Sep. 30, 2018			43,271,676
Balance at Dec. 31, 2018			$ 300,844	79,003	(12,381)			367,466
Balance (in shares) at Dec. 31, 2018			43,288,750
Increase (Decrease) in Shareholders' Equity
Net income				12,146				12,146
Other comprehensive income (loss)					3,394			3,394
Amortization of restricted stock awards, net of forfeitures and taxes			$ 271					271
Cash dividend declared				(5,196)				(5,196)
Stock option expense, net of forfeitures and taxes			166					166
Stock options exercised			$ 269					269
Stock options exercised (in shares)			35,003
Balance at Mar. 31, 2019			$ 301,550	85,953	(8,987)			378,516
Balance (in shares) at Mar. 31, 2019			43,323,753
Balance at Dec. 31, 2018			$ 300,844	79,003	(12,381)			367,466
Balance (in shares) at Dec. 31, 2018			43,288,750
Increase (Decrease) in Shareholders' Equity
Net income								34,776
Other comprehensive income (loss)					6,583			6,583
Balance at Sep. 30, 2019			$ 302,983	98,161	(5,798)			395,346
Balance (in shares) at Sep. 30, 2019			43,509,406
Balance at Mar. 31, 2019			$ 301,550	85,953	(8,987)			378,516
Balance (in shares) at Mar. 31, 2019			43,323,753
Increase (Decrease) in Shareholders' Equity
Net income				11,353				11,353
Other comprehensive income (loss)					2,685			2,685
Issuance of restricted stock awards, net (in shares)			134,653
Amortization of restricted stock awards, net of forfeitures and taxes			$ 303					303
Cash dividend declared				(5,201)				(5,201)
Stock option expense, net of forfeitures and taxes			155					155
Stock options exercised			$ 297					297
Stock options exercised (in shares)			40,000
Balance at Jun. 30, 2019			$ 302,305	92,105	(6,302)			388,108
Balance (in shares) at Jun. 30, 2019			43,498,406
Increase (Decrease) in Shareholders' Equity
Net income				11,277				11,277
Other comprehensive income (loss)					504			504
Issuance of restricted stock awards, net (in shares)			6,000
Amortization of restricted stock awards, net of forfeitures and taxes			$ 358					358
Cash dividend declared				(5,221)				(5,221)
Stock option expense, net of forfeitures and taxes			163					163
Stock options exercised			$ 157					157
Stock options exercised (in shares)			17,000
Balance at Sep. 30, 2019			$ 302,983	$ 98,161	$ (5,798)			$ 395,346
Balance (in shares) at Sep. 30, 2019			43,509,406

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.12	$ 0.12	$ 0.12	$ 0.11	$ 0.11	$ 0.11

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 34,776	$ 22,099
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	1,821	3,093
(Gain) on sale of securities available-for-sale	(878)	(266)
(Gain) on sale of SBA loans	(331)	(551)
Proceeds from sale of SBA loans originated for sale	4,692	9,315
SBA loans originated for sale	(5,977)	(11,689)
Provision (credit) for loan losses	(2,377)	7,279
Increase in cash surrender value of life insurance	(999)	(816)
Depreciation and amortization	598	566
Amortization of other intangible assets	1,661	1,336
Stock option expense, net	484	535
Amortization of restricted stock awards, net	932	814
Amortization of subordinated debt issuance costs	138	139
Effect of changes in:
Accrued interest receivable and other assets	1,863	(19)
Accrued interest payable and other liabilities	(3,120)	1,723
Net cash provided by operating activities	33,283	33,558
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale		(15,193)
Purchase of securities held-to-maturity	(8,386)	(16,906)
Maturities/paydowns/calls of securities available-for-sale	36,956	44,832
Maturities/paydowns/calls of securities held-to-maturity	42,255	38,091
Proceeds from sales of securities available-for-sale	98,733	94,291
Net change in loans	12,136	20,215
Changes in Federal Home Loan Bank stock and other investments	(15)	(4,478)
Purchase of premises and equipment	(310)	(108)
Cash received in bank acquisition, net of cash paid		36,028
Net cash provided by investing activities	181,369	196,772
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	51,458	(154,318)
Exercise of stock options	723	2,499
Payment of cash dividends	(15,618)	(13,704)
Net cash provided by (used in) financing activities	36,563	(165,523)
Net increase in cash and cash equivalents	251,215	64,807
Cash and cash equivalents, beginning of period	164,568	316,222
Cash and cash equivalents, end of period	415,783	381,029
Supplemental disclosures of cash flow information:
Interest paid	6,693	4,728
Income taxes paid	13,620	$ 8,671
Supplemental schedule of non-cash activity:
Recording of right to use assets in exchange for lease obligations	9,566
Transfer of loans held-for-sale to loan portfolio	$ 694

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 acquisitions:
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	38,089
Other intangible assets	8,361
Other assets, net	14,736
Deposits	(416,628)
Other borrowings	(62)
Other liabilities	$ (3,038)

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 activity:
Common stock issued to acquire Tri-Valley Bank and United American Bank	$ 78,005

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2019
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, 2018. 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, 2019 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2019. 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 February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)”. The pronouncement affects all entities that are party to leasing agreements. The ASU requires a lessee to recognize assets and liabilities on the balance sheet for leases. The ASU permits a lessee to elect to opt out of recognizing lease assets and lease liabilities for short-term leases with a term of twelve months or less. The Company has made this short-term lease election. Lessee’s recognition, measurement, and presentation of income, expenses and cash flows arising from a lease remain similar to current GAAP. Lessee and lessors have additional quantitative and qualitative disclosures to help users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for fiscal years beginning after December 31, 2018, and interim periods within those fiscal years. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU No. 2018-11 entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and lessors may elect not to separate lease and non-lease components when certain conditions are met. As the Company elected the transition option provided in ASU No. 2018-11, the modified retrospective approach was applied on January 1, 2019 (as opposed to January 1, 2017). The Company also elected certain practical expedients provided under ASU No. 2016-02 whereby we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842): Narrow-Scope Improvements for Lessors,” which provides targeted improvements and clarification to guidance with FASB ASC Topic 842 specific to lessors. The amendments of ASU No. 2018-20 have the same effective date as ASU 2016-02 and may be applied either retrospectively or prospectively to all new and existing leases. The Company obtained a third-party software application which provides lease accounting under the guidelines of FASB ASC Topic 842. The amendments of ASU No. 2016-02 and subsequently issued ASUs, which provided additional guidance and clarifications to various aspects of FASB ASC Topic 842, became effective for the Company on January 1, 2019. At September 30, 2019, the Company reported increased assets and liabilities of $7.1 million on its consolidated balance sheet as a result of recognizing right-of-use assets and lease liabilities related to non-cancellable operating lease agreements for office space. The adoption of this guidance did not have a material impact to its Consolidated Statetements of Income or Cash Flows. See Note 17 – Leases for more information. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. This update shortens the amortization period of certain callable debt securities held at a premium to the earliest call date. The amendments in this update were effective for the Company on January 1, 2019. The amendments are applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and the Company is required to provide change in accounting principle disclosures. The Company adopted the new guidance on January 1, 2019, and there was no material impact to the financial statements and no cumulative adjustments were made. Newly Issued, but not yet Effective Accounting Standards 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 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. Early application is permitted for fiscal years beginning after December 15, 2018. The Company has established a company-wide, cross-functional governance structure, which oversees overall strategy for implementation of CECL. We have evaluated various loss methodologies to determine their correlation to our various loan categories historical performance, and we have completed the data validation. The Company is focused on completing model validation, refining assumptions and continued review of the models. The Company also continues to focus on researching and resolving interpretive accounting issues in the ASU, contemplating various related accounting policies, developing processes and related controls and considering various reporting disclosures. The magnitude of the change in the Company’s allowance for loan losses at the adoption date will depend upon the nature and characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that time. 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, 2019
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 826,036 and 512,261 stock options for the three months ended September 30, 2019 and 2018, and 826,036 and 505,686 for the nine months ended September 30, 2019 and 2018, 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, 2019 2018 2019 2018 (Dollars in thousands, except per share amounts) Net income $ 11,277 $ 12,375 $ 34,776 $ 22,099 Weighted average common shares outstanding for basic earnings per common share 43,258,983 43,230,016 43,189,710 41,132,043 Dilutive potential common shares 537,921 501,354 538,375 551,001 Shares used in computing diluted earnings per common share 43,796,904 43,731,370 43,728,085 41,683,044 Basic earnings per share $ 0.26 $ 0.29 $ 0.81 $ 0.54 Diluted earnings per share $ 0.26 $ 0.28 $ 0.80 $ 0.53

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (“AOCI”)	9 Months Ended
	Sep. 30, 2019
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, 2019 and 2018 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, 2019, net of taxes $ 1,083 $ 317 $ (7,702) $ (6,302) Other comprehensive income (loss) before reclassification, net of taxes 737 — (8) 729 Amounts reclassified from other comprehensive income (loss), net of taxes (232) (9) 16 (225) Net current period other comprehensive income (loss), net of taxes 505 (9) 8 504 Ending balance September 30, 2019, net of taxes $ 1,588 $ 308 $ (7,694) $ (5,798) Beginning balance July 1, 2018, net of taxes $ (7,031) $ 359 $ (9,194) $ (15,866) Other comprehensive (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) (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. Nine Months Ended September 30, 2019 and 2018 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, 2019, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Other comprehensive income (loss) before reclassification, net of taxes 7,213 — (22) 7,191 Amounts reclassified from other comprehensive income (loss), net of taxes (618) (36) 46 (608) Net current period other comprehensive income (loss), net of taxes 6,595 (36) 24 6,583 Ending balance September 30, 2019, net of taxes $ 1,588 $ 308 $ (7,694) $ (5,798) 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 income (loss), net of taxes (187) (24) 120 (91) Net current period other comprehensive income (loss), net of taxes (8,004) (24) 107 (7,921) Ending balance September 30, 2018, net of taxes $ (8,366) $ 351 $ (9,158) $ (17,173) (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) Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 2019 2018 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 330 $ — Gain on sales of securities (98) — Income tax expense 232 — Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 13 11 Interest income on taxable securities (4) (3) Income tax expense 9 8 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 24 16 Actuarial losses (46) (73) (22) (57) Other noninterest expense 6 17 Income tax benefit (16) (40) Net of tax Total reclassification for the period $ 225 $ (32) Amounts Reclassified from AOCI(1) Nine Months Ended September 30, Affected Line Item Where Details About AOCI Components 2019 2018 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 878 $ 266 Gain on sales of securities (260) (79) Income tax expense 618 187 Net of tax Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity 52 33 Interest income on taxable securities (16) (9) Income tax expense 36 24 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 73 48 Actuarial losses (138) (219) (65) (171) Other noninterest expense 19 51 Income tax benefit (46) (120) Net of tax Total reclassification from AOCI for the period $ 608 $ 91 (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, 2019
Securities
Securities	4) Securities The amortized cost and estimated fair value of securities at September 30, 2019 and December 31, 2018 were as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair September 30, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 212,759 $ 588 $ (605) $ 212,742 U.S. Treasury 118,684 1,675 — 120,359 Total $ 331,443 $ 2,263 $ (605) $ 333,101 Securities held-to-maturity: Agency mortgage-backed securities $ 259,312 $ 870 $ (1,175) $ 259,007 Municipals - exempt from Federal tax 82,721 1,403 (2) 84,122 Total $ 342,033 $ 2,273 $ (1,177) $ 343,129 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 311,523 $ 98 $ (8,767) $ 302,854 U.S. Treasury 147,823 930 — 148,753 U.S. Government sponsored entities 7,433 4 (1) 7,436 Total $ 466,779 $ 1,032 $ (8,768) $ 459,043 Securities held-to-maturity: Agency mortgage-backed securities $ 291,241 $ 59 $ (9,153) $ 282,147 Municipals - exempt from Federal tax 85,957 312 (2,241) 84,028 Total $ 377,198 $ 371 $ (11,394) $ 366,175 Securities with unrealized losses at September 30, 2019 and December 31, 2018, 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, 2019 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 25,073 $ (50) $ 84,313 $ (555) $ 109,386 $ (605) Total $ 25,073 $ (50) $ 84,313 $ (555) $ 109,386 $ (605) Securities held-to-maturity: Agency mortgage-backed securities $ 38,850 $ (118) $ 104,510 $ (1,057) $ 143,360 $ (1,175) Municipals - exempt from Federal tax 1,012 (2) — — 1,012 (2) Total $ 39,862 $ (120) $ 104,510 $ (1,057) $ 144,372 $ (1,177) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 3,868 $ (21) $ 281,082 $ (8,746) $ 284,950 $ (8,767) U.S. Government sponsored entities 3,974 (1) — — 3,974 (1) Total $ 7,842 $ (22) $ 281,082 $ (8,746) $ 288,924 $ (8,768) Securities held-to-maturity: Agency mortgage-backed securities $ 16,088 $ (103) $ 255,917 $ (9,050) $ 272,005 $ (9,153) Municipals - exempt from Federal tax 5,019 (27) 57,301 (2,214) 62,320 (2,241) Total $ 21,107 $ (130) $ 313,218 $ (11,264) $ 334,325 $ (11,394) 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, 2019, the Company held 451 securities (133 available-for-sale and 318 held‑to‑maturity), of which 100 had fair values below amortized cost. At September 30, 2019, there were $84,313,000 of agency mortgage-back securities available-for-sale, and $104,510,000 of agency mortgage-backed securities held-to-maturity, carried with an unrealized loss for 12 months or more. The total unrealized loss for securities 12 months or more was $1,612,000 at September 30, 2019. 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, 2019. 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, 2019 2018 2019 2018 (Dollars in thousands) Proceeds $ 38,855 $ — $ 98,733 $ 94,291 Gross gains 363 — 971 1,243 Gross losses (33) — (93) (977) The amortized cost and estimated fair values of securities as of September 30, 2019 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 3 months through one year $ 29,722 29,947 Due after one through five years 88,962 90,412 Agency mortgage-backed securities 212,759 212,742 Total $ 331,443 $ 333,101 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 360 361 Due after 3 months through one year 654 659 Due after one through five years 5,968 6,123 Due after five through ten years 28,057 28,625 Due after ten years 47,682 48,354 Agency mortgage-backed securities 259,312 259,007 Total $ 342,033 $ 343,129 Securities with amortized cost of $32,309,000 and $36,229,000 as of September 30, 2019 and December 31, 2018 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, 2019
Loans
Loans	5) Loans Loans were as follows for the periods indicated: September 30, December 31, 2019 2018 (Dollars in thousands) Loans held-for-investment: Commercial $ 528,060 $ 597,763 Real estate: CRE 1,080,235 994,067 Land and construction 96,610 122,358 Home equity 111,610 109,112 Residential mortgages 47,276 50,979 Consumer 11,701 12,453 Loans 1,875,492 1,886,732 Deferred loan fees, net (105) (327) Loans, net of deferred fees 1,875,387 1,886,405 Allowance for loan losses (25,895) (27,848) Loans, net $ 1,849,492 $ 1,858,557 At September 30, 2019, total net loans included in the table above include $25,396,000, $91,818,000 and $150,149,000, 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, 2018, total net loans included in the table above include $36,958,000, $111,952,000 and $181,453,000, of the loans acquired in the Focus, Tri-Valley, and United American acquisitions, respectively, that were not purchased credit impaired loans. Changes in the allowance for loan losses were as follows for the periods indicated: Three Months Ended September 30, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 15,234 $ 11,307 $ 90 $ 26,631 Charge-offs (315) — (3) (318) Recoveries 115 43 — 158 Net (charge-offs) recoveries (200) 43 (3) (160) Provision (credit) for loan losses (378) (207) 9 (576) End of period balance $ 14,656 $ 11,143 $ 96 $ 25,895 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 Nine Months Ended September 30, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Charge-offs (617) — (3) (620) Recoveries 917 127 — 1,044 Net (charge-offs) recoveries 300 127 (3) 424 Provision (credit) for loan losses (2,705) 345 (17) (2,377) End of period balance $ 14,656 $ 11,143 $ 96 $ 25,895 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 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, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 6,971 $ 305 $ — $ 7,276 Collectively evaluated for impairment 7,685 10,838 96 18,619 Total allowance balance $ 14,656 $ 11,143 $ 96 $ 25,895 Loans: Individually evaluated for impairment $ 9,029 $ 5,465 $ — $ 14,494 Collectively evaluated for impairment 519,031 1,330,266 11,701 1,860,998 Total loan balance $ 528,060 $ 1,335,731 $ 11,701 $ 1,875,492 December 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 6,944 $ — $ — $ 6,944 Collectively evaluated for impairment 10,117 10,671 116 20,904 Total allowance balance $ 17,061 $ 10,671 $ 116 $ 27,848 Loans: Individually evaluated for impairment $ 9,495 $ 5,645 $ — $ 15,140 Collectively evaluated for impairment 588,268 1,270,871 12,453 1,871,592 Total loan balance $ 597,763 $ 1,276,516 $ 12,453 $ 1,886,732 The following table presents loans held-for-investment individually evaluated for impairment by class of loans as of September 30, 2019 and December 31, 2018. 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, 2019 December 31, 2018 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance Investment Allocated Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 1,414 $ 1,414 $ — $ 1,849 $ 1,849 $ — Real estate: CRE — — — 5,094 5,094 — Land and construction — — — — — — Home Equity 371 371 — 551 551 — Total with no related allowance recorded 1,785 1,785 — 7,494 7,494 — With an allowance recorded: Commercial 7,615 7,615 6,971 7,646 7,646 6,944 Real estate: Commercial 5,094 5,094 305 — — — Total with an allowance recorded 12,709 12,709 7,276 7,646 7,646 6,944 Total $ 14,494 $ 14,494 $ 7,276 $ 15,140 $ 15,140 $ 6,944 The following tables present interest recognized and cash‑basis interest earned on impaired loans for the periods indicated: Three Months Ended September 30, 2019 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 8,699 $ 6,768 $ — $ 377 $ — $ 15,844 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — 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 $ — $ — $ — $ — $ — $ — Nine Months Ended September 30, 2019 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 8,857 $ 6,768 $ — $ 460 $ — $ 16,085 Interest income during impairment $ — $ — $ — $ — $ — $ — 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 $ — $ — $ — $ — $ — $ — 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, 2019 2018 2018 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 13,638 $ 23,342 $ 13,699 Restructured and loans over 90 days past due and still accruing 609 1,373 1,188 Total nonperforming loans 14,247 24,715 14,887 Other restructured loans 247 334 253 Total impaired loans $ 14,494 $ 25,049 $ 15,140 The following table presents the nonperforming loans by class for the periods indicated: September 30, 2019 December 31, 2018 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 $ 8,397 $ 385 $ 8,782 $ 8,279 $ 963 $ 9,242 Real estate: CRE 5,094 — 5,094 5,094 — 5,094 Home equity 147 224 371 326 225 551 Total $ 13,638 $ 609 $ 14,247 $ 13,699 $ 1,188 $ 14,887 The following tables present the aging of past due loans by class for the periods indicated: September 30, 2019 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 2,536 $ 1,419 $ 7,543 $ 11,498 $ 516,562 $ 528,060 Real estate: CRE 562 — 5,094 5,656 1,074,579 1,080,235 Land and construction — — — — 96,610 96,610 Home equity 147 — — 147 111,463 111,610 Residential mortgages — — — — 47,276 47,276 Consumer 14 — — 14 11,687 11,701 Total $ 3,259 $ 1,419 $ 12,637 $ 17,315 $ 1,858,177 $ 1,875,492 December 31, 2018 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 5,698 $ 1,916 $ 1,258 $ 8,872 $ 588,891 $ 597,763 Real estate: CRE — — — — 994,067 994,067 Land and construction — — — — 122,358 122,358 Home equity — — — 109,112 109,112 Residential mortgages — — — — 50,979 50,979 Consumer 1 — — 1 12,452 12,453 Total $ 5,699 $ 1,916 $ 1,258 $ 8,873 $ 1,877,859 $ 1,886,732 Past due loans 30 days or greater totaled $17,315,000 and $8,873,000 at September 30, 2019 and December 31, 2018, respectively, of which $12,425,000 and $430,000 were on nonaccrual, respectively. At September 30, 2019, there were also $1,213,000 of loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2018, there were also $13,269,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. Management’s classification of a loan as “nonaccrual” is an indication that there is reasonable doubt as to the full recovery of principal or interest on the loan. At that point, the Company stops accruing interest income, and reverses any uncollected interest that had been accrued as income. The Company begins recognizing interest income only as cash interest payments are received and it has been determined the collection of all outstanding principal is not in doubt. The loans may or may not be collateralized, and collection efforts are pursued. Credit Quality Indicators Concentrations of credit risk arise when a number of customers are engaged in similar business activities, or activities in the same geographic region, or have similar features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Company’s loan portfolio is concentrated in commercial (primarily manufacturing, wholesale, and service) and real estate lending, with the remaining balance in consumer loans. While no specific industry concentration is considered significant, the Company’s lending operations are located in the Company’s market areas that are dependent on the technology and real estate industries and their supporting companies. Thus, the Company’s borrowers could be adversely impacted by a downturn in these sectors of the economy which could reduce the demand for loans and adversely impact the borrowers’ ability to repay their loans. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with contractual loans terms. Classified loans are those loans that are assigned a substandard, substandard-nonaccrual, or doubtful risk rating using the following 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, 2019 and December 31, 2018. The following table provides a summary of the loan portfolio by loan type and credit quality classification at period end: September 30, 2019 December 31, 2018 Nonclassified Classified Total Nonclassified Classified Total (Dollars in thousands) Commercial $ 515,769 12,291 $ 528,060 $ 584,845 $ 12,918 $ 597,763 Real estate: CRE 1,073,989 6,246 1,080,235 985,193 8,874 994,067 Land and construction 96,610 — 96,610 122,358 — 122,358 Home equity 109,922 1,688 111,610 107,495 1,617 109,112 Residential mortgages 47,276 — 47,276 50,979 — 50,979 Consumer 11,701 — 11,701 12,453 — 12,453 Total $ 1,855,267 $ 20,225 $ 1,875,492 $ 1,863,323 $ 23,409 $ 1,886,732 Classified loans were $ 20,225,000, or 0.64% of total assets, at September 30, 2019, compared to $30,546,000, or 0.95% of total assets, at September 30, 2018 and $23,409,000, or 0.76% of total assets, at December 31, 2018. The decrease in classified assets at September 30, 2019, compared to December 31, 2018, was primarily due to the payoff of classified loans. The book balance of troubled debt restructurings at September 30, 2019 was $503,000, which included $6,000 of nonaccrual loans and $497,000 of accruing loans. The book balance of troubled debt restructurings at December 31, 2018 was $649,000, which included $36,000 of nonaccrual loans and $613,000 of accruing loans. Approximately $7,000 and $38,000 of specific reserves were established with respect to these loans as of September 30, 2019 and December 31, 2018, respectively. The following table presents loans by class modified as troubled debt restructurings for the periods indicated: During the Nine Months Ended September 30, 2019 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 2 $ 9 $ 9 Total 2 $ 9 $ 9 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 Equity 1 225 225 Total 3 $ 384 $ 384 During the three and nine months ended September 30, 2019, 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. 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, 2019 and 2018. 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, 2019
Business Combinations
Business Combinations	6) Business Combinations The Company completed the acquisition of Presidio Bank of San Francisco, CA, effective October 11, 2019. See Note 19 – Subsequent Events. 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. 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. United American’s results of operations have been included in the Company’s results of operations beginning May 5, 2018. The mergers provided 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 enhanced the Company’s capabilities, operational efficiencies, and community outreach. The Company also believes the combined bank is much better positioned to meet the needs of the Company’s customers, shareholders and the community. The one time pre-tax severance, retention, acquisition and integration costs totaled $199,000 and $9,028,000 for the three months and nine months ended September 30, 2018, respectively. The acquisitions were accounted for under the acquisition method of accounting. 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. There were no PCI loans at September 30, 2019 and December 31, 2018. Goodwill of $13,819,000 arising from the Tri-Valley acquisition and $24,270,000 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. As of April 6, 2019 and May 4, 2019 the Company finalized its valuation of all assets acquired and liabilities assumed in its acquisition of Tri-Valley and United American, respectively, resulting in no material changes to acquisition accounting adjustments.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	7) Goodwill and Other Intangible Assets Goodwill At September 30, 2019, the carrying value of goodwill was $83,753,000, which included $13,044,000 of goodwill related to its acquisition of Bay View Funding, $32,620,000 from its acquisition of Focus, $13,819,000 from its acquisition of Tri-Valley and $24,270,000 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, 2018 with the assistance of an independent valuation firm. No events or circumstances since the November 30, 2018 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 $1,530,000 and $756,000 at September 30, 2019 and December 31, 2018, respectively. 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 $416,000 and $222,000 at September 30, 2019 and December 31, 2018, respectively. 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 $3,320,000 and $2,770,000 at September 30, 2019 and December 31, 2018, respectively. Other intangible assets acquired in the acquisition of Bay View Funding in November 2014 included a below market value lease intangible assets of $109,000, a non-compete agreement intangible asset of $250,000, and a customer relationship and brokered relationship intangible assets of $1,900,000, amortized over the 10 year estimated useful lives. Accumulated amortization of the customer relationship and brokered relationship intangible assets was $933,000 and $791,000 at September 30, 2019 and December 31, 2018, respectively. Estimated amortization expense for 2019, 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) 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 2024 499 — 152 18 346 159 1,174 Thereafter 1,520 — 451 88 201 — 2,260 $ 5,137 $ 490 $ 1,560 $ 196 $ 3,515 $ 1,109 $ 12,007 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, 2019 and December 31, 2018.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	8) Income Taxes Some items of income and expense are recognized in one year for tax purposes, and another when applying generally accepted accounting principles, which leads to timing differences between the Company’s actual current tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the “deferred” portion of the Company’s tax expense or benefit, which is accumulated on the Company’s books as a deferred tax asset or deferred tax liability until such time as they reverse. Under generally accepted accounting principles, a valuation allowance is required if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. The Company had net deferred tax assets of $21,699,000, and $27,089,000, at September 30, 2019 and December 31, 2018, 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, 2019 and December 31, 2018 will be fully realized in future years. The following table reflects the carrying 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, December 31, 2019 2018 (Dollars in thousands) Low income housing investments $ 3,035 $ 3,172 Future commitments $ 273 $ 273 The Company expects $14,000 of the future commitments to be paid in 2019, $14,000 in 2020, and $245,000 in 2021 through 2023. For tax purposes, the Company had low income housing tax credits of $106,000 for the three months ended September 30, 2019 and September 30, 2018, and low income housing investment expense of $106,000 and $117,000, respectively. For tax purposes, the Company had low income housing tax credits of $319,000, for the nine months ended September 30, 2019 and September 30, 2018, and low income housing investment expense of $317,000 and $351,000, 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, 2019
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, 2019 2018 2019 2018 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 55 $ 62 $ 165 $ 186 Interest cost 264 237 792 711 Amortization of net actuarial loss 46 73 138 219 Net periodic benefit cost $ 365 $ 372 $ 1,095 $ 1,116 The components of net periodic benefit cost other than the service cost component are included in the line item “other noninterest expense” in the Consolidated Statements of Income. 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, 2019 2018 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,903 $ 6,711 Interest cost 209 227 Actuarial loss (gain) — (35) Projected benefit obligation at end of period $ 7,112 $ 6,903 September 30, December 31, 2019 2018 (Dollars in thousands) Net actuarial loss $ 2,713 $ 2,573 Prior transition obligation 1,081 1,149 Accumulated other comprehensive loss $ 3,794 $ 3,722 Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (Dollars in thousands) Amortization of prior transition obligation $ (24) $ (16) $ (73) $ (48) Interest cost 69 56 209 170 Net periodic benefit cost $ 45 $ 40 $ 136 $ 122

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2019
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, 2019 Available-for-sale securities: Agency mortgage-backed securities $ 212,742 — $ 212,742 — U.S. Treasury 120,359 120,359 — — I/O strip receivables 541 — 541 — Assets at December 31, 2018 Available-for-sale securities: Agency mortgage-backed securities $ 302,854 — $ 302,854 — U.S. Treasury 148,753 148,753 — — U.S. Government sponsored entities 7,436 — 7,436 — I/O strip receivables 568 — 568 — 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, 2019 Impaired loans - held-for-investment: Commercial $ 644 — — $ 644 Real estate: CRE 4,789 — — 4,789 $ 5,433 — — $ 5,433 Assets at December 31, 2018 Impaired loans - held-for-investment: Commercial $ 702 — — $ 702 $ 702 — — $ 702 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, 2019 December 31, 2018 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 12,709 $ 7,646 Book value of impaired loans held-for-investment carried at cost 1,785 7,494 Total impaired loans held-for-investment $ 14,494 $ 15,140 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 12,709 $ 7,646 Specific valuation allowance (7,276) (6,944) Impaired loans held-for-investment carried at fair value, net $ 5,433 $ 702 Impaired loans held‑for‑investment which are measured primarily for impairment using the fair value of the collateral were $14,494,000 at September 30, 2019. In addition, these loans had a specific valuation allowance of $7,276,000 at September 30, 2019. Impaired loans held‑for‑investment totaling $12,709,000 at September 30, 2019, were carried at fair value as a result of partial charge‑offs and specific valuation allowances at period‑end. The remaining $1,785,000 of impaired loans were carried at cost at September 30, 2019, 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 2019 on impaired loans held‑for‑investment carried at fair value at September 30, 2019 resulted in an additional provision for loan losses of $399,000. At September 30, 2019, there were no foreclosed assets. Impaired loans held‑for‑investment were $15,140,000 at December 31, 2018. In addition, these loans had a specific valuation allowance of $6,944,000 at December 31, 2018. Impaired loans held‑for‑investment totaling $7,646,000 at December 31, 2018 were carried at fair value as a result of partial charge‑offs and specific valuation allowances at year‑end. The remaining $7,494,000 of impaired loans were carried at cost at December 31, 2018, as the fair value of the collateral exceeded the cost basis of each respective loan. Partial charge‑offs and changes in specific valuation allowances during 2018 on impaired loans held‑for‑investment carried at fair value at December 31, 2018 resulted in an additional provision for loan losses of $7,042,000. At December 31, 2018, 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, 2019 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 644 Market Approach Discount adjustment for differences between comparable sales Less than 1% Real estate: CRE 4,789 Market Approach Discount adjustment for differences between comparable sales Less than 1% December 31, 2018 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 702 Market Approach Discount adjustment for differences between comparable sales 0% to 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, 2019 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 $ 415,783 $ 415,783 $ — $ — $ 415,783 Securities available-for-sale 333,101 120,359 212,742 — 333,101 Securities held-to-maturity 342,033 — 343,129 — 343,129 Loans (including loans held-for-sale), net 1,853,063 — 3,571 1,856,933 1,860,504 FHLB stock, FRB stock, and other investments 25,231 — — — N/A Accrued interest receivable 8,588 615 1,969 6,004 8,588 I/O strips receivables 541 — 541 — 541 Liabilities: Time deposits $ 151,040 $ — $ 151,561 $ — $ 151,561 Other deposits 2,537,950 — 2,537,950 — 2,537,950 Subordinated debt 39,507 — 40,407 — 40,407 Accrued interest payable 1,271 — 1,271 — 1,271 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2018: 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 $ 164,568 $ 164,568 $ — $ — $ 164,568 Securities available-for-sale 459,043 148,753 310,290 — 459,043 Securities held-to-maturity 377,198 — 366,175 — 366,175 Loans (including loans held-for-sale), net 1,861,206 — 2,649 1,826,654 1,829,303 FHLB stock, FRB stock, and other investments 25,216 — — — N/A Accrued interest receivable 9,577 597 2,274 6,706 9,577 I/O strips receivables 568 — 568 — 568 Liabilities: Time deposits $ 147,560 $ — $ 147,916 $ — $ 147,916 Other deposits 2,489,972 — 2,489,972 — 2,489,972 Subordinated debt 39,369 — 38,969 — 38,969 Accrued interest payable 497 — 497 — 497 In accordance with our adoption of ASU 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at September 30, 2019 and December 31, 2018 represent an approximation of exit price, however, an actual exit price may differ.

Equity Plan

Equity Plan	9 Months Ended
	Sep. 30, 2019
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, 2019, the Company granted 299,500 shares of nonqualified stock options and 134,653 shares of restricted stock. There were 756,903 shares available for the issuance of equity awards under the 2013 Plan as of September 30, 2019. 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, 2019 1,570,603 $ 10.76 Granted 299,500 $ 12.16 Exercised (92,003) $ 7.86 Forfeited or expired (22,550) $ 15.70 Outstanding at September 30, 2019 1,755,550 $ 11.09 6.51 $ 3,371,810 Vested or expected to vest 1,650,217 6.51 $ 3,169,501 Exercisable at September 30, 2019 1,147,730 5.29 $ 3,319,623 Information related to the equity plans for the periods indicated: Nine Months Ended September 30, 2019 2018 Intrinsic value of options exercised $ 444,251 $ 1,767,884 Cash received from option exercise $ 723,397 $ 2,499,481 Tax benefit realized from option exercises $ 44,244 $ 513,901 Weighted average fair value of options granted $ 1.91 $ 3.07 As of September 30, 2019, there was $1,424,000 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 2.82 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, 2019 2018 Expected life in months(1) 72 72 Volatility(1) 24 % 21 % Weighted average risk-free interest rate(2) 2.23 % 2.87 % Expected dividends(3) 3.95 % 2.62 % (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, 2019 193,298 $ 11.04 Granted 134,653 $ 12.16 Vested (82,498) $ 12.37 Forfeited or expired (6,000) $ 17.11 Nonvested shares at September 30, 2019 239,453 $ 11.23 As of September 30, 2019, there was $2,692,000 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 2.29 years.

Subordinated Debt

Subordinated Debt	9 Months Ended
	Sep. 30, 2019
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. It is anticipated that the LIBOR index will be phased out by the end of 2021 and the Secured Overnight Financing Rate (“SOFR”) has been recommended as an alternative to LIBOR.

Capital Requirements

Capital Requirements	9 Months Ended
	Sep. 30, 2019
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, 2019, 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 were 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 addressed relevant provisions of The Dodd Frank Wall Street Reform and Consumer Protection Act of 2010, as amended. The new capital rules established a “capital conservation buffer,” which must consist entirely of common equity Tier 1 capital. The capital conservation buffer is 2.5% of risk-weighted assets. 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, 2019. 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, 2019 and December 31, 2018, 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, 2019 and December 31, 2018. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2019 Total Capital $ 367,466 16.2 % $ 238,455 10.5 % (to risk-weighted assets) Tier 1 Capital $ 301,444 13.3 % $ 193,035 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 301,444 13.3 % $ 158,970 7.0 % (to risk-weighted assets) Tier 1 Capital $ 301,444 10.0 % $ 120,086 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, effective January 1, 2019, 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, 2018 Total Capital $ 344,597 15.0 % $ 227,514 9.875 % (to risk-weighted assets) Tier 1 Capital $ 276,675 12.0 % $ 181,435 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 276,675 12.0 % $ 146,876 6.375 % (to risk-weighted assets) Tier 1 Capital $ 276,675 8.9 % $ 124,726 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. 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, 2019, and December 31, 2018. Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2019 Total Capital $ 346,087 15.2 % $ 226,966 10.0 % $ 238,314 10.5 % (to risk-weighted assets) Tier 1 Capital $ 319,572 14.1 % $ 181,573 8.0 % $ 192,921 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 319,572 14.1 % $ 147,528 6.5 % $ 158,876 7.0 % (to risk-weighted assets) Tier 1 Capital $ 319,572 10.6 % $ 150,040 5.0 % $ 120,032 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, effective January 1, 2019, except the Tier 1 Capital to average assets ratio. Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2018 Total Capital $ 322,283 14.0 % $ 230,275 10.0 % $ 227,397 9.875 % (to risk-weighted assets) Tier 1 Capital $ 293,730 12.8 % $ 184,220 8.0 % $ 181,342 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 293,730 12.8 % $ 149,679 6.5 % $ 146,800 6.375 % (to risk-weighted assets) Tier 1 Capital $ 293,730 9.4 % $ 155,832 5.0 % $ 124,666 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. The Subordinated Debt, net of unamortized issuance costs, totaled $39,507,000 at September 30, 2019, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Bank. At a Special Meeting of Shareholders on August 27, 2019, the Company’s shareholders approved an amendment to the Company’s articles of incorporation to increase the number of authorized shares of common stock from 60,000,000 to 100,000,000 shares of common stock. 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, 2019, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $27,636,000. 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, second and first quarter of 2019, HBC distributed to HCC dividends of $5,000,000, $5,500,000 and $5,000,000, respectively, for a total of $15,500,000 for the nine months of 2019.

Loss Contingencies

Loss Contingencies	9 Months Ended
	Sep. 30, 2019
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, 2019
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. 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 and fees 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. 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, 2019 2018 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 1,032 $ 1,107 Noninterest Income Out-of-scope of Topic 606 1,586 1,099 Total noninterest income $ 2,618 $ 2,206 Nine Months Ended September 30, 2019 2018 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 3,370 $ 2,981 Noninterest Income Out-of-scope of Topic 606 4,481 4,200 Total noninterest income $ 7,851 $ 7,181

Noninterest Expense

Noninterest Expense	9 Months Ended
	Sep. 30, 2019
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, 2019 2018 2019 2018 (Dollars in thousands) Salaries and employee benefits $ 10,467 $ 10,536 $ 31,935 $ 31,726 Occupancy and equipment 1,550 1,559 4,634 3,927 Professional fees 789 721 2,360 2,038 Merger-related costs (1) 661 199 1,201 9,028 Software subscriptions 601 555 1,746 1,747 Amortization of intangible assets 554 631 1,661 1,336 Insurance expense 479 430 1,354 1,236 Data processing 454 525 1,865 1,501 Recovery of legal fees (2) — — — (922) Other 2,354 2,572 7,516 6,963 Total $ 17,909 $ 17,728 $ 54,272 $ 58,580 (1) Severance and retention expense of $183,000 and $3,576,000 for first three months and first nine months of 2018 is included in the “Salaries and employee benefits” category in the Consolidated Statements of Income. Other acquisition and integration costs of $661,000 and $16,000 for the third quarter of 2019 and the third quarter of 2018, respectively, is included in the “Other noninterest expense” category in the Consolidated Statements of Income. Other acquisition and integration costs of $ 1,201,000 and $5,452,000 for the first nine months of 2019 and the first nine months of 2018, respectively, is included in the “Other noninterest expense” category in the Consolidated Statements of Income. (2) Included in Professional fees for the nine months ended September 30, 2018 in the Consolidated Statements of Income.

Lease

Lease	9 Months Ended
	Sep. 30, 2019
Leases
Leases	17) Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842). Under the new guidance, the Company recognizes the following for all leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company is impacted as a lessee of the offices and real estate used for operations. The Company's lease agreements include options to renew at the Company's option. No lease extensions are reasonably certain to be exercised, therefore it was not considered in the calculation of the ROU asset and lease liability. As of September 30, 2019, operating lease ROU assets, included in other assets, and lease liabilities, included in other liabilities, totaled $7,089,000. The following table presents the quantitative information for the Company’s leases: September 30, 2019 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,035 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,040 Operating Lease - ROU assets $ 7,089 Operating Lease - Liabilities $ 7,089 Weighted Average Lease Term - Operating Leases 3.59 years Weighted Average Discount Rate - Operating Leases The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease abilities: (Dollars in thousands) 2019 $ 1,024 2020 2,353 2021 1,565 2022 1,306 2023 769 Thereafter 784 Total undiscounted cash flows 7,801 Discount on cash flows (712) Total lease liability $ 7,089 In June of 2019, the Company entered in to a lease agreement for 54,910 square feet of office space in San Jose, California, commencing on February 1, 2020. The Company intends to move its Bay View Funding office during the first quarter of 2020, and move the main office of HBC during the second quarter of 2020, to this new location.

Business Segment Information

Business Segment Information	9 Months Ended
	Sep. 30, 2019
Business Segment Information
Business Segment Information	18) 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, 2019 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 30,371 2,879 $ 33,250 Intersegment interest allocations 303 (303) — Total interest expense 2,625 — 2,625 Net interest income 28,049 2,576 30,625 Provision (credit) for loan losses (1,019) 443 (576) Net interest income after provision 29,068 2,133 31,201 Noninterest income 2,488 130 2,618 Noninterest expense (2) 16,204 1,705 17,909 Intersegment expense allocations 125 (125) — Income before income taxes 15,477 433 15,910 Income tax (benefit) expense 4,505 128 4,633 Net income $ 10,972 $ 305 $ 11,277 Total assets $ 3,119,367 $ 63,104 $ 3,182,471 Loans, net of deferred fees $ 1,831,172 $ 44,215 $ 1,875,387 Goodwill $ 70,709 $ 13,044 $ 83,753 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 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 merger-related costs of $661,000 and $199,000, for the third quarter of 2019 and the third quarter of 2018, respectively Nine Months Ended September 30, 2019 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 91,388 $ 8,800 $ 100,188 Intersegment interest allocations 909 (909) — Total interest expense 7,605 — 7,605 Net interest income 84,692 7,891 92,583 Provision (credit) for loan losses (2,655) 278 (2,377) Net interest income after provision 87,347 7,613 94,960 Noninterest income 7,361 490 7,851 Noninterest expense (2) 49,189 5,083 54,272 Intersegment expense allocations 378 (378) — Income before income taxes 45,897 2,642 48,539 Income tax expense 12,982 781 13,763 Net income $ 32,915 $ 1,861 $ 34,776 Total assets $ 3,119,367 $ 63,104 $ 3,182,471 Loans, net of deferred fees $ 1,831,172 $ 44,215 $ 1,875,387 Goodwill $ 70,709 $ 13,044 $ 83,753 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 merger-related costs of $1,201,000 and $9,028,000, for the first nine months of 2019 and the first nine months of 2018, respectively

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events
Subsequent Events	19) Subsequent Events The Company completed its previously announced merger of its wholly-owned bank subsidiary Heritage Bank of Commerce with Presidio Bank (“Presidio”) effective October 11, 2019. The merger, which was first announced on May 16, 2019, was concluded following receipt of approval from both the Company’s and Presidio shareholders and all required regulatory approvals. Presidio’s results of operations from October 12, 2019 through December 31, 2019 will be reflected in the Company’s results of operations in the fourth quarter of 2019. Presidio was a full-service California state-chartered commercial bank headquartered in San Francisco with branches in Palo Alto, San Francisco, San Mateo, San Rafael, and Walnut Creek, California. At September 30, 2019, Presidio had approximately $877.4 million in assets, $692.9 million in net loans and $754.5 million in deposits. The transactions will be accounted for using the acquisition method of accounting which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition dates. The acquisition related disclosures required by the accounting guidance cannot be made at this time as the initial accounting for the business transactions has not been completed. On October 24, 2019, the Company announced that its Board of Directors declared a $0.12 per share quarterly cash dividend to holders of common stock. The dividend will be paid on November 19, 2019 to shareholders of record on November 5, 2019.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2019
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, 2018. 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, 2019 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2019.
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 February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)”. The pronouncement affects all entities that are party to leasing agreements. The ASU requires a lessee to recognize assets and liabilities on the balance sheet for leases. The ASU permits a lessee to elect to opt out of recognizing lease assets and lease liabilities for short-term leases with a term of twelve months or less. The Company has made this short-term lease election. Lessee’s recognition, measurement, and presentation of income, expenses and cash flows arising from a lease remain similar to current GAAP. Lessee and lessors have additional quantitative and qualitative disclosures to help users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for fiscal years beginning after December 31, 2018, and interim periods within those fiscal years. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU No. 2018-11 entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and lessors may elect not to separate lease and non-lease components when certain conditions are met. As the Company elected the transition option provided in ASU No. 2018-11, the modified retrospective approach was applied on January 1, 2019 (as opposed to January 1, 2017). The Company also elected certain practical expedients provided under ASU No. 2016-02 whereby we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842): Narrow-Scope Improvements for Lessors,” which provides targeted improvements and clarification to guidance with FASB ASC Topic 842 specific to lessors. The amendments of ASU No. 2018-20 have the same effective date as ASU 2016-02 and may be applied either retrospectively or prospectively to all new and existing leases. The Company obtained a third-party software application which provides lease accounting under the guidelines of FASB ASC Topic 842. The amendments of ASU No. 2016-02 and subsequently issued ASUs, which provided additional guidance and clarifications to various aspects of FASB ASC Topic 842, became effective for the Company on January 1, 2019. At September 30, 2019, the Company reported increased assets and liabilities of $7.1 million on its consolidated balance sheet as a result of recognizing right-of-use assets and lease liabilities related to non-cancellable operating lease agreements for office space. The adoption of this guidance did not have a material impact to its Consolidated Statetements of Income or Cash Flows. See Note 17 – Leases for more information. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. This update shortens the amortization period of certain callable debt securities held at a premium to the earliest call date. The amendments in this update were effective for the Company on January 1, 2019. The amendments are applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and the Company is required to provide change in accounting principle disclosures. The Company adopted the new guidance on January 1, 2019, and there was no material impact to the financial statements and no cumulative adjustments were made. Newly Issued, but not yet Effective Accounting Standards 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 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. Early application is permitted for fiscal years beginning after December 15, 2018. The Company has established a company-wide, cross-functional governance structure, which oversees overall strategy for implementation of CECL. We have evaluated various loss methodologies to determine their correlation to our various loan categories historical performance, and we have completed the data validation. The Company is focused on completing model validation, refining assumptions and continued review of the models. The Company also continues to focus on researching and resolving interpretive accounting issues in the ASU, contemplating various related accounting policies, developing processes and related controls and considering various reporting disclosures. The magnitude of the change in the Company’s allowance for loan losses at the adoption date will depend upon the nature and characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that time. 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, 2019
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, 2019 2018 2019 2018 (Dollars in thousands, except per share amounts) Net income $ 11,277 $ 12,375 $ 34,776 $ 22,099 Weighted average common shares outstanding for basic earnings per common share 43,258,983 43,230,016 43,189,710 41,132,043 Dilutive potential common shares 537,921 501,354 538,375 551,001 Shares used in computing diluted earnings per common share 43,796,904 43,731,370 43,728,085 41,683,044 Basic earnings per share $ 0.26 $ 0.29 $ 0.81 $ 0.54 Diluted earnings per share $ 0.26 $ 0.28 $ 0.80 $ 0.53

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (“AOCI”) (Tables)	9 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) (“AOCI”)
Schedule of changes in AOCI by component	Three Months Ended September 30, 2019 and 2018 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, 2019, net of taxes $ 1,083 $ 317 $ (7,702) $ (6,302) Other comprehensive income (loss) before reclassification, net of taxes 737 — (8) 729 Amounts reclassified from other comprehensive income (loss), net of taxes (232) (9) 16 (225) Net current period other comprehensive income (loss), net of taxes 505 (9) 8 504 Ending balance September 30, 2019, net of taxes $ 1,588 $ 308 $ (7,694) $ (5,798) Beginning balance July 1, 2018, net of taxes $ (7,031) $ 359 $ (9,194) $ (15,866) Other comprehensive (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) (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. Nine Months Ended September 30, 2019 and 2018 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, 2019, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Other comprehensive income (loss) before reclassification, net of taxes 7,213 — (22) 7,191 Amounts reclassified from other comprehensive income (loss), net of taxes (618) (36) 46 (608) Net current period other comprehensive income (loss), net of taxes 6,595 (36) 24 6,583 Ending balance September 30, 2019, net of taxes $ 1,588 $ 308 $ (7,694) $ (5,798) 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 income (loss), net of taxes (187) (24) 120 (91) Net current period other comprehensive income (loss), net of taxes (8,004) (24) 107 (7,921) Ending balance September 30, 2018, net of taxes $ (8,366) $ 351 $ (9,158) $ (17,173) (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.
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 2019 2018 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 330 $ — Gain on sales of securities (98) — Income tax expense 232 — Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 13 11 Interest income on taxable securities (4) (3) Income tax expense 9 8 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 24 16 Actuarial losses (46) (73) (22) (57) Other noninterest expense 6 17 Income tax benefit (16) (40) Net of tax Total reclassification for the period $ 225 $ (32) Amounts Reclassified from AOCI(1) Nine Months Ended September 30, Affected Line Item Where Details About AOCI Components 2019 2018 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 878 $ 266 Gain on sales of securities (260) (79) Income tax expense 618 187 Net of tax Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity 52 33 Interest income on taxable securities (16) (9) Income tax expense 36 24 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 73 48 Actuarial losses (138) (219) (65) (171) Other noninterest expense 19 51 Income tax benefit (46) (120) Net of tax Total reclassification from AOCI for the period $ 608 $ 91 (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, 2019
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Estimated Amortized Unrealized Unrealized Fair September 30, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 212,759 $ 588 $ (605) $ 212,742 U.S. Treasury 118,684 1,675 — 120,359 Total $ 331,443 $ 2,263 $ (605) $ 333,101 Securities held-to-maturity: Agency mortgage-backed securities $ 259,312 $ 870 $ (1,175) $ 259,007 Municipals - exempt from Federal tax 82,721 1,403 (2) 84,122 Total $ 342,033 $ 2,273 $ (1,177) $ 343,129 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 311,523 $ 98 $ (8,767) $ 302,854 U.S. Treasury 147,823 930 — 148,753 U.S. Government sponsored entities 7,433 4 (1) 7,436 Total $ 466,779 $ 1,032 $ (8,768) $ 459,043 Securities held-to-maturity: Agency mortgage-backed securities $ 291,241 $ 59 $ (9,153) $ 282,147 Municipals - exempt from Federal tax 85,957 312 (2,241) 84,028 Total $ 377,198 $ 371 $ (11,394) $ 366,175
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 25,073 $ (50) $ 84,313 $ (555) $ 109,386 $ (605) Total $ 25,073 $ (50) $ 84,313 $ (555) $ 109,386 $ (605) Securities held-to-maturity: Agency mortgage-backed securities $ 38,850 $ (118) $ 104,510 $ (1,057) $ 143,360 $ (1,175) Municipals - exempt from Federal tax 1,012 (2) — — 1,012 (2) Total $ 39,862 $ (120) $ 104,510 $ (1,057) $ 144,372 $ (1,177) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 3,868 $ (21) $ 281,082 $ (8,746) $ 284,950 $ (8,767) U.S. Government sponsored entities 3,974 (1) — — 3,974 (1) Total $ 7,842 $ (22) $ 281,082 $ (8,746) $ 288,924 $ (8,768) Securities held-to-maturity: Agency mortgage-backed securities $ 16,088 $ (103) $ 255,917 $ (9,050) $ 272,005 $ (9,153) Municipals - exempt from Federal tax 5,019 (27) 57,301 (2,214) 62,320 (2,241) Total $ 21,107 $ (130) $ 313,218 $ (11,264) $ 334,325 $ (11,394)
Schedule of proceeds from sales of securities and the resulting gains and losses	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (Dollars in thousands) Proceeds $ 38,855 $ — $ 98,733 $ 94,291 Gross gains 363 — 971 1,243 Gross losses (33) — (93) (977)
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 3 months through one year $ 29,722 29,947 Due after one through five years 88,962 90,412 Agency mortgage-backed securities 212,759 212,742 Total $ 331,443 $ 333,101 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 360 361 Due after 3 months through one year 654 659 Due after one through five years 5,968 6,123 Due after five through ten years 28,057 28,625 Due after ten years 47,682 48,354 Agency mortgage-backed securities 259,312 259,007 Total $ 342,033 $ 343,129

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Loans
Schedule of loans	September 30, December 31, 2019 2018 (Dollars in thousands) Loans held-for-investment: Commercial $ 528,060 $ 597,763 Real estate: CRE 1,080,235 994,067 Land and construction 96,610 122,358 Home equity 111,610 109,112 Residential mortgages 47,276 50,979 Consumer 11,701 12,453 Loans 1,875,492 1,886,732 Deferred loan fees, net (105) (327) Loans, net of deferred fees 1,875,387 1,886,405 Allowance for loan losses (25,895) (27,848) Loans, net $ 1,849,492 $ 1,858,557
Schedule of changes in allowance for loan losses	Three Months Ended September 30, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 15,234 $ 11,307 $ 90 $ 26,631 Charge-offs (315) — (3) (318) Recoveries 115 43 — 158 Net (charge-offs) recoveries (200) 43 (3) (160) Provision (credit) for loan losses (378) (207) 9 (576) End of period balance $ 14,656 $ 11,143 $ 96 $ 25,895 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 Nine Months Ended September 30, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Charge-offs (617) — (3) (620) Recoveries 917 127 — 1,044 Net (charge-offs) recoveries 300 127 (3) 424 Provision (credit) for loan losses (2,705) 345 (17) (2,377) End of period balance $ 14,656 $ 11,143 $ 96 $ 25,895 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
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method	September 30, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 6,971 $ 305 $ — $ 7,276 Collectively evaluated for impairment 7,685 10,838 96 18,619 Total allowance balance $ 14,656 $ 11,143 $ 96 $ 25,895 Loans: Individually evaluated for impairment $ 9,029 $ 5,465 $ — $ 14,494 Collectively evaluated for impairment 519,031 1,330,266 11,701 1,860,998 Total loan balance $ 528,060 $ 1,335,731 $ 11,701 $ 1,875,492 December 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 6,944 $ — $ — $ 6,944 Collectively evaluated for impairment 10,117 10,671 116 20,904 Total allowance balance $ 17,061 $ 10,671 $ 116 $ 27,848 Loans: Individually evaluated for impairment $ 9,495 $ 5,645 $ — $ 15,140 Collectively evaluated for impairment 588,268 1,270,871 12,453 1,871,592 Total loan balance $ 597,763 $ 1,276,516 $ 12,453 $ 1,886,732
Schedule of loans held-for-investment individually evaluated for impairment by class of loans	September 30, 2019 December 31, 2018 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance Investment Allocated Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 1,414 $ 1,414 $ — $ 1,849 $ 1,849 $ — Real estate: CRE — — — 5,094 5,094 — Land and construction — — — — — — Home Equity 371 371 — 551 551 — Total with no related allowance recorded 1,785 1,785 — 7,494 7,494 — With an allowance recorded: Commercial 7,615 7,615 6,971 7,646 7,646 6,944 Real estate: Commercial 5,094 5,094 305 — — — Total with an allowance recorded 12,709 12,709 7,276 7,646 7,646 6,944 Total $ 14,494 $ 14,494 $ 7,276 $ 15,140 $ 15,140 $ 6,944
Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans	Three Months Ended September 30, 2019 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 8,699 $ 6,768 $ — $ 377 $ — $ 15,844 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — 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 $ — $ — $ — $ — $ — $ — Nine Months Ended September 30, 2019 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 8,857 $ 6,768 $ — $ 460 $ — $ 16,085 Interest income during impairment $ — $ — $ — $ — $ — $ — 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 $ — $ — $ — $ — $ — $ —
Schedule of nonperforming loans	September 30, December 31, 2019 2018 2018 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 13,638 $ 23,342 $ 13,699 Restructured and loans over 90 days past due and still accruing 609 1,373 1,188 Total nonperforming loans 14,247 24,715 14,887 Other restructured loans 247 334 253 Total impaired loans $ 14,494 $ 25,049 $ 15,140
Schedule of nonperforming loans by class	September 30, 2019 December 31, 2018 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 $ 8,397 $ 385 $ 8,782 $ 8,279 $ 963 $ 9,242 Real estate: CRE 5,094 — 5,094 5,094 — 5,094 Home equity 147 224 371 326 225 551 Total $ 13,638 $ 609 $ 14,247 $ 13,699 $ 1,188 $ 14,887
Schedule of aging of past due loans by class of loans	September 30, 2019 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 2,536 $ 1,419 $ 7,543 $ 11,498 $ 516,562 $ 528,060 Real estate: CRE 562 — 5,094 5,656 1,074,579 1,080,235 Land and construction — — — — 96,610 96,610 Home equity 147 — — 147 111,463 111,610 Residential mortgages — — — — 47,276 47,276 Consumer 14 — — 14 11,687 11,701 Total $ 3,259 $ 1,419 $ 12,637 $ 17,315 $ 1,858,177 $ 1,875,492 December 31, 2018 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 5,698 $ 1,916 $ 1,258 $ 8,872 $ 588,891 $ 597,763 Real estate: CRE — — — — 994,067 994,067 Land and construction — — — — 122,358 122,358 Home equity — — — 109,112 109,112 Residential mortgages — — — — 50,979 50,979 Consumer 1 — — 1 12,452 12,453 Total $ 5,699 $ 1,916 $ 1,258 $ 8,873 $ 1,877,859 $ 1,886,732
Summary of loan portfolio by loan type and credit quality classification	September 30, 2019 December 31, 2018 Nonclassified Classified Total Nonclassified Classified Total (Dollars in thousands) Commercial $ 515,769 12,291 $ 528,060 $ 584,845 $ 12,918 $ 597,763 Real estate: CRE 1,073,989 6,246 1,080,235 985,193 8,874 994,067 Land and construction 96,610 — 96,610 122,358 — 122,358 Home equity 109,922 1,688 111,610 107,495 1,617 109,112 Residential mortgages 47,276 — 47,276 50,979 — 50,979 Consumer 11,701 — 11,701 12,453 — 12,453 Total $ 1,855,267 $ 20,225 $ 1,875,492 $ 1,863,323 $ 23,409 $ 1,886,732
Schedule of loans by class modified as troubled debt restructurings	During the Nine Months Ended September 30, 2019 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 2 $ 9 $ 9 Total 2 $ 9 $ 9 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 Equity 1 225 225 Total 3 $ 384 $ 384

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
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) 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 2024 499 — 152 18 346 159 1,174 Thereafter 1,520 — 451 88 201 — 2,260 $ 5,137 $ 490 $ 1,560 $ 196 $ 3,515 $ 1,109 $ 12,007

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2019
Income Taxes
Summary of carrying amount of low income tax housing investment	September 30, December 31, 2019 2018 (Dollars in thousands) Low income housing investments $ 3,035 $ 3,172 Future commitments $ 273 $ 273

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2019
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 55 $ 62 $ 165 $ 186 Interest cost 264 237 792 711 Amortization of net actuarial loss 46 73 138 219 Net periodic benefit cost $ 365 $ 372 $ 1,095 $ 1,116
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	September 30, December 31, 2019 2018 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,903 $ 6,711 Interest cost 209 227 Actuarial loss (gain) — (35) Projected benefit obligation at end of period $ 7,112 $ 6,903
Schedule of amounts recognized in accumulated other comprehensive loss	September 30, December 31, 2019 2018 (Dollars in thousands) Net actuarial loss $ 2,713 $ 2,573 Prior transition obligation 1,081 1,149 Accumulated other comprehensive loss $ 3,794 $ 3,722
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (Dollars in thousands) Amortization of prior transition obligation $ (24) $ (16) $ (73) $ (48) Interest cost 69 56 209 170 Net periodic benefit cost $ 45 $ 40 $ 136 $ 122

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019 Available-for-sale securities: Agency mortgage-backed securities $ 212,742 — $ 212,742 — U.S. Treasury 120,359 120,359 — — I/O strip receivables 541 — 541 — Assets at December 31, 2018 Available-for-sale securities: Agency mortgage-backed securities $ 302,854 — $ 302,854 — U.S. Treasury 148,753 148,753 — — U.S. Government sponsored entities 7,436 — 7,436 — I/O strip receivables 568 — 568 —
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, 2019 Impaired loans - held-for-investment: Commercial $ 644 — — $ 644 Real estate: CRE 4,789 — — 4,789 $ 5,433 — — $ 5,433 Assets at December 31, 2018 Impaired loans - held-for-investment: Commercial $ 702 — — $ 702 $ 702 — — $ 702
Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value	September 30, 2019 December 31, 2018 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 12,709 $ 7,646 Book value of impaired loans held-for-investment carried at cost 1,785 7,494 Total impaired loans held-for-investment $ 14,494 $ 15,140 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 12,709 $ 7,646 Specific valuation allowance (7,276) (6,944) Impaired loans held-for-investment carried at fair value, net $ 5,433 $ 702
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis	September 30, 2019 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 644 Market Approach Discount adjustment for differences between comparable sales Less than 1% Real estate: CRE 4,789 Market Approach Discount adjustment for differences between comparable sales Less than 1% December 31, 2018 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 702 Market Approach Discount adjustment for differences between comparable sales 0% to 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, 2019 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 $ 415,783 $ 415,783 $ — $ — $ 415,783 Securities available-for-sale 333,101 120,359 212,742 — 333,101 Securities held-to-maturity 342,033 — 343,129 — 343,129 Loans (including loans held-for-sale), net 1,853,063 — 3,571 1,856,933 1,860,504 FHLB stock, FRB stock, and other investments 25,231 — — — N/A Accrued interest receivable 8,588 615 1,969 6,004 8,588 I/O strips receivables 541 — 541 — 541 Liabilities: Time deposits $ 151,040 $ — $ 151,561 $ — $ 151,561 Other deposits 2,537,950 — 2,537,950 — 2,537,950 Subordinated debt 39,507 — 40,407 — 40,407 Accrued interest payable 1,271 — 1,271 — 1,271 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2018: 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 $ 164,568 $ 164,568 $ — $ — $ 164,568 Securities available-for-sale 459,043 148,753 310,290 — 459,043 Securities held-to-maturity 377,198 — 366,175 — 366,175 Loans (including loans held-for-sale), net 1,861,206 — 2,649 1,826,654 1,829,303 FHLB stock, FRB stock, and other investments 25,216 — — — N/A Accrued interest receivable 9,577 597 2,274 6,706 9,577 I/O strips receivables 568 — 568 — 568 Liabilities: Time deposits $ 147,560 $ — $ 147,916 $ — $ 147,916 Other deposits 2,489,972 — 2,489,972 — 2,489,972 Subordinated debt 39,369 — 38,969 — 38,969 Accrued interest payable 497 — 497 — 497

Equity Plan (Tables)

Equity Plan (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019 1,570,603 $ 10.76 Granted 299,500 $ 12.16 Exercised (92,003) $ 7.86 Forfeited or expired (22,550) $ 15.70 Outstanding at September 30, 2019 1,755,550 $ 11.09 6.51 $ 3,371,810 Vested or expected to vest 1,650,217 6.51 $ 3,169,501 Exercisable at September 30, 2019 1,147,730 5.29 $ 3,319,623
Schedule of information related to the equity Plan	Nine Months Ended September 30, 2019 2018 Intrinsic value of options exercised $ 444,251 $ 1,767,884 Cash received from option exercise $ 723,397 $ 2,499,481 Tax benefit realized from option exercises $ 44,244 $ 513,901 Weighted average fair value of options granted $ 1.91 $ 3.07
Schedule of assumptions used to estimate the fair value of each option grant on the date of grant	Nine Months Ended September 30, 2019 2018 Expected life in months(1) 72 72 Volatility(1) 24 % 21 % Weighted average risk-free interest rate(2) 2.23 % 2.87 % Expected dividends(3) 3.95 % 2.62 % (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, 2019 193,298 $ 11.04 Granted 134,653 $ 12.16 Vested (82,498) $ 12.37 Forfeited or expired (6,000) $ 17.11 Nonvested shares at September 30, 2019 239,453 $ 11.23

Capital Requirements (Tables)

Capital Requirements (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019 Total Capital $ 367,466 16.2 % $ 238,455 10.5 % (to risk-weighted assets) Tier 1 Capital $ 301,444 13.3 % $ 193,035 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 301,444 13.3 % $ 158,970 7.0 % (to risk-weighted assets) Tier 1 Capital $ 301,444 10.0 % $ 120,086 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, effective January 1, 2019, 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, 2018 Total Capital $ 344,597 15.0 % $ 227,514 9.875 % (to risk-weighted assets) Tier 1 Capital $ 276,675 12.0 % $ 181,435 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 276,675 12.0 % $ 146,876 6.375 % (to risk-weighted assets) Tier 1 Capital $ 276,675 8.9 % $ 124,726 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.
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 PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2019 Total Capital $ 346,087 15.2 % $ 226,966 10.0 % $ 238,314 10.5 % (to risk-weighted assets) Tier 1 Capital $ 319,572 14.1 % $ 181,573 8.0 % $ 192,921 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 319,572 14.1 % $ 147,528 6.5 % $ 158,876 7.0 % (to risk-weighted assets) Tier 1 Capital $ 319,572 10.6 % $ 150,040 5.0 % $ 120,032 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, effective January 1, 2019, except the Tier 1 Capital to average assets ratio. Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2018 Total Capital $ 322,283 14.0 % $ 230,275 10.0 % $ 227,397 9.875 % (to risk-weighted assets) Tier 1 Capital $ 293,730 12.8 % $ 184,220 8.0 % $ 181,342 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 293,730 12.8 % $ 149,679 6.5 % $ 146,800 6.375 % (to risk-weighted assets) Tier 1 Capital $ 293,730 9.4 % $ 155,832 5.0 % $ 124,666 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.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended September 30, 2019 2018 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 1,032 $ 1,107 Noninterest Income Out-of-scope of Topic 606 1,586 1,099 Total noninterest income $ 2,618 $ 2,206 Nine Months Ended September 30, 2019 2018 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 3,370 $ 2,981 Noninterest Income Out-of-scope of Topic 606 4,481 4,200 Total noninterest income $ 7,851 $ 7,181

Noninterest Expense (Tables)

Noninterest Expense (Tables)	9 Months Ended
	Sep. 30, 2019
Noninterest Expense
Schedule of noninterest expense	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (Dollars in thousands) Salaries and employee benefits $ 10,467 $ 10,536 $ 31,935 $ 31,726 Occupancy and equipment 1,550 1,559 4,634 3,927 Professional fees 789 721 2,360 2,038 Merger-related costs (1) 661 199 1,201 9,028 Software subscriptions 601 555 1,746 1,747 Amortization of intangible assets 554 631 1,661 1,336 Insurance expense 479 430 1,354 1,236 Data processing 454 525 1,865 1,501 Recovery of legal fees (2) — — — (922) Other 2,354 2,572 7,516 6,963 Total $ 17,909 $ 17,728 $ 54,272 $ 58,580 (1) Severance and retention expense of $183,000 and $3,576,000 for first three months and first nine months of 2018 is included in the “Salaries and employee benefits” category in the Consolidated Statements of Income. Other acquisition and integration costs of $661,000 and $16,000 for the third quarter of 2019 and the third quarter of 2018, respectively, is included in the “Other noninterest expense” category in the Consolidated Statements of Income. Other acquisition and integration costs of $ 1,201,000 and $5,452,000 for the first nine months of 2019 and the first nine months of 2018, respectively, is included in the “Other noninterest expense” category in the Consolidated Statements of Income. (2) Included in Professional fees for the nine months ended September 30, 2018 in the Consolidated Statements of Income.

Lease (Tables)

Lease (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Schedule of leases	September 30, 2019 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,035 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,040 Operating Lease - ROU assets $ 7,089 Operating Lease - Liabilities $ 7,089 Weighted Average Lease Term - Operating Leases 3.59 years Weighted Average Discount Rate - Operating Leases
Schedule of maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities	(Dollars in thousands) 2019 $ 1,024 2020 2,353 2021 1,565 2022 1,306 2023 769 Thereafter 784 Total undiscounted cash flows 7,801 Discount on cash flows (712) Total lease liability $ 7,089

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Business Segment Information
Schedule of information by operating segment	Three Months Ended September 30, 2019 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 30,371 2,879 $ 33,250 Intersegment interest allocations 303 (303) — Total interest expense 2,625 — 2,625 Net interest income 28,049 2,576 30,625 Provision (credit) for loan losses (1,019) 443 (576) Net interest income after provision 29,068 2,133 31,201 Noninterest income 2,488 130 2,618 Noninterest expense (2) 16,204 1,705 17,909 Intersegment expense allocations 125 (125) — Income before income taxes 15,477 433 15,910 Income tax (benefit) expense 4,505 128 4,633 Net income $ 10,972 $ 305 $ 11,277 Total assets $ 3,119,367 $ 63,104 $ 3,182,471 Loans, net of deferred fees $ 1,831,172 $ 44,215 $ 1,875,387 Goodwill $ 70,709 $ 13,044 $ 83,753 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 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 merger-related costs of $661,000 and $199,000, for the third quarter of 2019 and the third quarter of 2018, respectively Nine Months Ended September 30, 2019 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 91,388 $ 8,800 $ 100,188 Intersegment interest allocations 909 (909) — Total interest expense 7,605 — 7,605 Net interest income 84,692 7,891 92,583 Provision (credit) for loan losses (2,655) 278 (2,377) Net interest income after provision 87,347 7,613 94,960 Noninterest income 7,361 490 7,851 Noninterest expense (2) 49,189 5,083 54,272 Intersegment expense allocations 378 (378) — Income before income taxes 45,897 2,642 48,539 Income tax expense 12,982 781 13,763 Net income $ 32,915 $ 1,861 $ 34,776 Total assets $ 3,119,367 $ 63,104 $ 3,182,471 Loans, net of deferred fees $ 1,831,172 $ 44,215 $ 1,875,387 Goodwill $ 70,709 $ 13,044 $ 83,753 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 merger-related costs of $1,201,000 and $9,028,000, for the first nine months of 2019 and the first nine months of 2018, respectively

Basis of Presentation (Details)

Basis of Presentation (Details)	1 Months Ended		9 Months Ended
	May 31, 2018	Apr. 30, 2018	Sep. 30, 2019USD ($)segment
Segment Reporting
Number of customers accounting for more than 10 percent of revenue for HBC or the Company			0
Number of operating segments | segment			2
Operating lease, right-of-use asset			$ 7,089,000
Operating lease liability			$ 7,089,000
Tri Valley Bank and United American Bank | Core deposit
Segment Reporting
Finite-Lived Intangible Asset, Useful Life			10 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 | 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
ASU 2016-02
Segment Reporting
Operating lease, right-of-use asset			$ 7,100,000
Operating lease liability			$ 7,100,000

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, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 11,277	$ 11,353	$ 12,146	$ 12,375	$ 915	$ 8,809	$ 34,776	$ 22,099
Weighted average common shares outstanding for basic earnings per common share (in shares)	43,258,983			43,230,016			43,189,710	41,132,043
Dilutive potential common shares	537,921			501,354			538,375	551,001
Shares used in computing diluted earnings per common share (in shares)	43,796,904			43,731,370			43,728,085	41,683,044
Basic earnings per share (in dollars per share)	$ 0.26			$ 0.29			$ 0.81	$ 0.54
Diluted earnings per share (in dollars per share)	$ 0.26			$ 0.28			$ 0.80	$ 0.53
Number of shares not in computing diluted earnings per common share	826,036			512,261			826,036	505,686

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, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes			$ (12,381)				$ (12,381)
Net current period other comprehensive income (loss), net of taxes	$ 504	$ 2,685	3,394	$ (1,307)	$ (910)	$ (5,704)	6,583	$ (7,921)
Balance at the end of the period, net of taxes	(5,798)						(5,798)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(6,302)		(12,381)	(15,866)		(9,252)	(12,381)	(9,252)
Other comprehensive income (loss) before reclassification, net of taxes	729			(1,339)			7,191	(7,830)
Amounts reclassified from other comprehensive income (loss), net of taxes	(225)			32			(608)	(91)
Net current period other comprehensive income (loss), net of taxes	504	2,685	3,394	(1,307)	(910)	(5,704)	6,583	(7,921)
Balance at the end of the period, net of taxes	(5,798)	(6,302)		(17,173)	(15,866)		(5,798)	(17,173)
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	1,083		(5,007)	(7,031)		(362)	(5,007)	(362)
Other comprehensive income (loss) before reclassification, net of taxes	737			(1,335)			7,213	(7,817)
Amounts reclassified from other comprehensive income (loss), net of taxes	(232)						(618)	(187)
Net current period other comprehensive income (loss), net of taxes	505			(1,335)			6,595	(8,004)
Balance at the end of the period, net of taxes	1,588	1,083		(8,366)	(7,031)		1,588	(8,366)
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	317		344	359		375	344	375
Amounts reclassified from other comprehensive income (loss), net of taxes	(9)			(8)			(36)	(24)
Net current period other comprehensive income (loss), net of taxes	(9)			(8)			(36)	(24)
Balance at the end of the period, net of taxes	308	317		351	359		308	351
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(7,702)		$ (7,718)	(9,194)		$ (9,265)	(7,718)	(9,265)
Other comprehensive income (loss) before reclassification, net of taxes	(8)			(4)			(22)	(13)
Amounts reclassified from other comprehensive income (loss), net of taxes	16			40			46	120
Net current period other comprehensive income (loss), net of taxes	8			36			24	107
Balance at the end of the period, net of taxes	$ (7,694)	$ (7,702)		$ (9,158)	$ (9,194)		$ (7,694)	$ (9,158)

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, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Amount Reclassified from AOCI
Gain on sales of securities	$ 330						$ 878	$ 266
Interest income on taxable securities	3,504			$ 3,483			12,149	11,112
Income tax expense	(4,633)			(4,979)			(13,763)	(8,186)
Net income	11,277	$ 11,353	$ 12,146	12,375	$ 915	$ 8,809	34,776	22,099
Income before income tax	15,910			17,354			48,539	30,285
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Amount Reclassified from AOCI
Net of tax	232						618	187
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Gain on sales of securities	330						878	266
Income tax expense	(98)						(260)	(79)
Net income	232						618	187
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Amount Reclassified from AOCI
Net of tax	9			8			36	24
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Interest income on taxable securities	13			11			52	33
Income tax expense	(4)			(3)			(16)	(9)
Net income	9			8			36	24
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	(16)			(40)			(46)	(120)
Defined Benefit Pension Plan Items | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(22)			(57)			(65)	(171)
Income tax benefit	6			17			19	51
Net of tax	(16)			(40)			(46)	(120)
Prior transition obligation | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	24			16			73	48
Actuarial losses | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(46)			(73)			(138)	(219)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax	225			(32)			608	91
Accumulated Other Comprehensive Income / (Loss) | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ 225			$ (32)			$ 608	$ 91

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities available-for-sale:
Amortized Cost	$ 331,443	$ 466,779
Gross Unrealized Gains	2,263	1,032
Gross Unrealized (Losses)	(605)	(8,768)
Total	333,101	459,043
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	212,759	311,523
Gross Unrealized Gains	588	98
Gross Unrealized (Losses)	(605)	(8,767)
Total	212,742	302,854
U.S. Treasury
Securities available-for-sale:
Amortized Cost	118,684	147,823
Gross Unrealized Gains	1,675	930
Total	$ 120,359	148,753
U.S. Government sponsored entities
Securities available-for-sale:
Amortized Cost		7,433
Gross Unrealized Gains		4
Gross Unrealized (Losses)		(1)
Total		$ 7,436

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities held-to-maturity:
Amortized Cost	$ 342,033	$ 377,198
Gross Unrealized Gains	2,273	371
Gross Unrealized (Losses)	(1,177)	(11,394)
Estimated Fair Value	343,129	366,175
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	259,312	291,241
Gross Unrealized Gains	870	59
Gross Unrealized (Losses)	(1,175)	(9,153)
Estimated Fair Value	259,007	282,147
Municipals - exempt from Federal tax
Securities held-to-maturity:
Amortized Cost	82,721	85,957
Gross Unrealized Gains	1,403	312
Gross Unrealized (Losses)	(2)	(2,241)
Estimated Fair Value	$ 84,122	$ 84,028

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available-for-sale, Fair Value
Less Than 12 Months	$ 25,073	$ 7,842
12 Months or More	84,313	281,082
Total	109,386	288,924
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(50)	(22)
12 Months or More	(555)	(8,746)
Total	(605)	(8,768)
Agency mortgage-backed securities
Available-for-sale, Fair Value
Less Than 12 Months	25,073	3,868
12 Months or More	84,313	281,082
Total	109,386	284,950
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(50)	(21)
12 Months or More	(555)	(8,746)
Total	$ (605)	(8,767)
U.S. Government sponsored entities
Available-for-sale, Fair Value
Less Than 12 Months		3,974
Total		3,974
Available-for-sale, Unrealized (Losses)
Less Than 12 Months		(1)
Total		$ (1)

Securities - Securities with _2

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Held-to-maturity, Fair Value
Less Than 12 Months	$ 39,862	$ 21,107
12 Months or More	104,510	313,218
Total	144,372	334,325
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(120)	(130)
12 Months or More	(1,057)	(11,264)
Total	(1,177)	(11,394)
Agency mortgage-backed securities
Held-to-maturity, Fair Value
Less Than 12 Months	38,850	16,088
12 Months or More	104,510	255,917
Total	143,360	272,005
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(118)	(103)
12 Months or More	(1,057)	(9,050)
Total	(1,175)	(9,153)
Municipals - exempt from Federal tax
Held-to-maturity, Fair Value
Less Than 12 Months	1,012	5,019
12 Months or More		57,301
Total	1,012	62,320
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(2)	(27)
12 Months or More		(2,214)
Total	$ (2)	$ (2,241)

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)securityitem	Dec. 31, 2018USD ($)
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 | item	451
Number of available for sale securities held | item	133
Number of held to maturity securities held | item	318
Number of securities with fair values below amortized cost | item	100
Total unrealized loss for securities 12 months or more | $	$ 1,612
Available-for-sale securities carried with an unrealized loss for over 12 months | $	84,313	$ 281,082
Held-to-maturity securities carried with an unrealized loss for over 12 months | $	$ 104,510	313,218
Municipals - exempt from Federal tax
Additional Information
Held-to-maturity securities carried with an unrealized loss for over 12 months | $		$ 57,301

Securities - Proceeds from Sale

Securities - Proceeds from Sales of Securities and the Resulting Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Proceeds from Sales of Securities and the Resulting Gains and Losses
Proceeds	$ 38,855	$ 98,733	$ 94,291
Gross gains	363	971	1,243
Gross losses	$ (33)	$ (93)	$ (977)

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, 2019	Dec. 31, 2018
Available-for-sale, Amortized Cost
Due after 3 months through one year	$ 29,722
Due after one year through five years	88,962
Agency mortgage-backed securities	212,759
Total	331,443	$ 466,779
Available-for-sale, Estimated Fair Value
Due after 3 months through one year	29,947
Due after one year through five years	90,412
Agency mortgage-backed securities	212,742
Total	$ 333,101	$ 459,043

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, 2019	Dec. 31, 2018
Held-to-maturity, Amortized Cost
Due 3 months or less	$ 360
Due after 3 months through one year	654
Due after one year through five years	5,968
Due after five years through ten years	28,057
Due after ten years	47,682
Agency mortgage-backed securities	259,312
Total	342,033	$ 377,198
Held-to-maturity, Estimated Fair Value
Due 3 months or less	361
Due after 3 months through one year	659
Due after one year through five years	6,123
Due after five years through ten years	28,625
Due after ten years	48,354
Agency mortgage-backed securities	259,007
Total	$ 343,129	$ 366,175

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
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	$ 32,309	$ 36,229

Loans -Loans Balance (Details)

Loans -Loans Balance (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Loans held-for-investment:
Total loan balance	$ 1,875,492		$ 1,886,732
Deferred loan fees, net	(105)		(327)
Loans, net of deferred fees	1,875,387		1,886,405	$ 1,899,387
Allowance for loan losses	(25,895)	$ (26,631)	(27,848)	(27,426)	$ (26,664)	$ (19,658)
Loans, net	1,849,492		1,858,557
Commercial
Loans held-for-investment:
Total loan balance	528,060		597,763
Allowance for loan losses	(14,656)	(15,234)	(17,061)	(17,273)	(17,522)	(10,608)
Real estate
Loans held-for-investment:
Total loan balance	1,335,731		1,276,516
Allowance for loan losses	(11,143)	(11,307)	(10,671)	(10,076)	(9,020)	(8,950)
Real estate | CRE
Loans held-for-investment:
Total loan balance	1,080,235		994,067
Real estate | Land and construction
Loans held-for-investment:
Total loan balance	96,610		122,358
Real estate | Equity
Loans held-for-investment:
Total loan balance	111,610		109,112
Real estate | Residential mortgages
Loans held-for-investment:
Total loan balance	47,276		50,979
Consumer
Loans held-for-investment:
Total loan balance	11,701		12,453
Allowance for loan losses	(96)	$ (90)	(116)	$ (77)	$ (122)	$ (100)
Focus
Loans held-for-investment:
Non-PCI loans acquired	25,396		36,958
Tri Valley Bank
Loans held-for-investment:
Non-PCI loans acquired	91,818		111,952
United American Bank
Loans held-for-investment:
Non-PCI loans acquired	$ 150,149		$ 181,453

Loans - Additional Information

Loans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Loans
Provision (credit) for loan losses	$ (576)	$ (425)	$ (2,377)	$ 7,279
Net (charge-offs) recoveries	$ (160)	$ 1,187	$ 424	$ 489

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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes in the Allowance for Loan Losses
Beginning of period balance	$ 26,631	$ 26,664	$ 27,848	$ 19,658
Charge-offs	(318)	(744)	(620)	(1,860)
Recoveries	158	1,931	1,044	2,349
Net (charge-offs) recoveries	(160)	1,187	424	489
Provision (credit) for loan losses	(576)	(425)	(2,377)	7,279
End of period balance	25,895	27,426	25,895	27,426
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance	15,234	17,522	17,061	10,608
Charge-offs	(315)	(719)	(617)	(1,835)
Recoveries	115	1,897	917	2,229
Net (charge-offs) recoveries	(200)	1,178	300	394
Provision (credit) for loan losses	(378)	(1,427)	(2,705)	6,271
End of period balance	14,656	17,273	14,656	17,273
Real estate
Changes in the Allowance for Loan Losses
Beginning of period balance	11,307	9,020	10,671	8,950
Recoveries	43	34	127	120
Net (charge-offs) recoveries	43	34	127	120
Provision (credit) for loan losses	(207)	1,022	345	1,006
End of period balance	11,143	10,076	11,143	10,076
Consumer
Changes in the Allowance for Loan Losses
Beginning of period balance	90	122	116	100
Charge-offs	(3)	(25)	(3)	(25)
Net (charge-offs) recoveries	(3)	(25)	(3)	(25)
Provision (credit) for loan losses	9	(20)	(17)	2
End of period balance	$ 96	$ 77	$ 96	$ 77

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, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
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	$ 7,276		$ 6,944
Allowance for loan losses, Collectively evaluated for impairment	18,619		20,904
Total allowance balance	25,895	$ 26,631	27,848	$ 27,426	$ 26,664	$ 19,658
Loans, Individually evaluated for impairment	14,494		15,140
Loans, Collectively evaluated for impairment	1,860,998		1,871,592
Total loan balance	1,875,492		1,886,732
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	6,971		6,944
Allowance for loan losses, Collectively evaluated for impairment	7,685		10,117
Total allowance balance	14,656	15,234	17,061	17,273	17,522	10,608
Loans, Individually evaluated for impairment	9,029		9,495
Loans, Collectively evaluated for impairment	519,031		588,268
Total loan balance	528,060		597,763
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, Individually evaluated for impairment	305
Allowance for loan losses, Collectively evaluated for impairment	10,838		10,671
Total allowance balance	11,143	11,307	10,671	10,076	9,020	8,950
Loans, Individually evaluated for impairment	5,465		5,645
Loans, Collectively evaluated for impairment	1,330,266		1,270,871
Total loan balance	1,335,731		1,276,516
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	96		116
Total allowance balance	96	$ 90	116	$ 77	$ 122	$ 100
Loans, Collectively evaluated for impairment	11,701		12,453
Total loan balance	$ 11,701		$ 12,453

Loans - Loans Held for Investme

Loans - Loans Held for Investment Individually Evaluated for Impairment by Class of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Unpaid Principal Balance
Total with no related allowance recorded	$ 1,785	$ 7,494
Total with an allowance recorded	12,709	7,646
Total	14,494	15,140
Recorded Investment
Total with no related allowance recorded	1,785	7,494
Total with an allowance recorded	12,709	7,646
Total	14,494	15,140	$ 25,049
Total with an allowance recorded, Allowance for Loan Losses Allocated	7,276	6,944
Commercial
Unpaid Principal Balance
Total with no related allowance recorded	1,414	1,849
Total with an allowance recorded	7,615	7,646
Recorded Investment
Total with no related allowance recorded	1,414	1,849
Total with an allowance recorded	7,615	7,646
Total with an allowance recorded, Allowance for Loan Losses Allocated	6,971	6,944
Commercial | Real estate
Unpaid Principal Balance
Total with an allowance recorded	5,094
Recorded Investment
Total with an allowance recorded	5,094
Total with an allowance recorded, Allowance for Loan Losses Allocated	305
Equity | Real estate
Unpaid Principal Balance
Total with no related allowance recorded	371	551
Recorded Investment
Total with no related allowance recorded	$ 371	551
CRE | Real estate
Unpaid Principal Balance
Total with no related allowance recorded		5,094
Recorded Investment
Total with no related allowance recorded		$ 5,094

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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 15,844	$ 25,930	$ 16,085	$ 14,668
Commercial
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	8,699	19,638	8,857	11,056
CRE | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	6,768	5,720	6,768	3,110
Land and construction | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period				30
Equity | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 377	$ 572	$ 460	$ 472

Loans - Nonperforming Loans (De

Loans - Nonperforming Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Nonaccrual loans - held-for-investment	$ 13,638	$ 13,699	$ 23,342
Restructured and loans over 90 days past due and still accruing	609	1,188	1,373
Total nonperforming loans	14,247	14,887	24,715
Other restructured loans	247	253	334
Total	$ 14,494	$ 15,140	$ 25,049

Loans - Nonperforming Loans by

Loans - Nonperforming Loans by Class (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	$ 13,638	$ 13,699	$ 23,342
Restructured and Loans Over 90 Days Past Due and Still Accruing	609	1,188	1,373
Total	14,247	14,887	$ 24,715
Commercial
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	8,397	8,279
Restructured and Loans Over 90 Days Past Due and Still Accruing	385	963
Total	8,782	9,242
CRE | Real estate
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	5,094	5,094
Total	5,094	5,094
Equity | Real estate
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	147	326
Restructured and Loans Over 90 Days Past Due and Still Accruing	224	225
Total	$ 371	$ 551

Loans - Aging of Past Due Loans

Loans - Aging of Past Due Loans by Class of Loans - Tabular Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 17,315	$ 8,873
Loans Not Past Due	1,858,177	1,877,859
Total loan balance	1,875,492	1,886,732
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	3,259	5,699
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,419	1,916
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	12,637	1,258
Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due	11,498	8,872
Loans Not Past Due	516,562	588,891
Total loan balance	528,060	597,763
Commercial | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,536	5,698
Commercial | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,419	1,916
Commercial | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	7,543	1,258
Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	1,335,731	1,276,516
Consumer
Aging of Past Due Loans by Class of Loans
Total Past Due	14	1
Loans Not Past Due	11,687	12,452
Total loan balance	11,701	12,453
Consumer | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	14	1
CRE | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	5,656
Loans Not Past Due	1,074,579	994,067
Total loan balance	1,080,235	994,067
CRE | Real estate | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	562
CRE | Real estate | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	5,094
Land and construction | Real estate
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	96,610	122,358
Total loan balance	96,610	122,358
Equity | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	147
Loans Not Past Due	111,463	109,112
Total loan balance	111,610	109,112
Equity | Real estate | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	147
Residential mortgages | Real estate
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	47,276	50,979
Total loan balance	$ 47,276	$ 50,979

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, 2019	Dec. 31, 2018	Sep. 30, 2018
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater	$ 17,315	$ 8,873
Nonaccrual loans - held-for-investment	13,638	13,699	$ 23,342
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans - held-for-investment	12,425	430
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans - held-for-investment	$ 1,213
Less than 30 days past due nonaccrual loans held-for-investment		$ 13,269

Loans - Credit Quality Indicato

Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans
Balance to report	$ 1,849,492	$ 1,858,557
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	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Loans
Total	$ 1,875,492		$ 1,886,732
Nonclassified
Loans
Total	1,855,267		1,863,323
Classified
Loans
Total	$ 20,225	$ 30,546	$ 23,409
Percentage of financing receivable balance over total assets	0.64%	0.95%	0.76%
Commercial
Loans
Total	$ 528,060		$ 597,763
Commercial | Nonclassified
Loans
Total	515,769		584,845
Commercial | Classified
Loans
Total	12,291		12,918
Real estate
Loans
Total	1,335,731		1,276,516
Real estate | CRE
Loans
Total	1,080,235		994,067
Real estate | CRE | Nonclassified
Loans
Total	1,073,989		985,193
Real estate | CRE | Classified
Loans
Total	6,246		8,874
Real estate | Land and construction
Loans
Total	96,610		122,358
Real estate | Land and construction | Nonclassified
Loans
Total	96,610		122,358
Real estate | Equity
Loans
Total	111,610		109,112
Real estate | Equity | Nonclassified
Loans
Total	109,922		107,495
Real estate | Equity | Classified
Loans
Total	1,688		1,617
Real estate | Residential mortgages
Loans
Total	47,276		50,979
Real estate | Residential mortgages | Nonclassified
Loans
Total	47,276		50,979
Consumer
Loans
Total	11,701		12,453
Consumer | Nonclassified
Loans
Total	$ 11,701		$ 12,453

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans
Recorded investment of troubled debt restructurings	$ 503	$ 649
Troubled debt restructurings, nonaccrual loans	6	36
Troubled debt restructurings, accruing loans	497	613
Specific reserves	$ 7	$ 38

Loans - Troubled Debt Restruc_2

Loans - Troubled Debt Restructurings by Class (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)contract	Sep. 30, 2018USD ($)contract
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract	2	3
Pre-modification Outstanding Recorded Investment	$ 9	$ 384
Post-modification Outstanding Recorded Investment	$ 9	$ 384
Commercial
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract	2	2
Pre-modification Outstanding Recorded Investment	$ 9	$ 159
Post-modification Outstanding Recorded Investment	$ 9	$ 159
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, 2019loanitem	Sep. 30, 2018item	Sep. 30, 2019contractloanitem	Sep. 30, 2018contractitem
Loans
Number of troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven | loan	0		0
Number of loans modified as troubled debt restructurings during the period | contract			2	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) $ in Thousands	Apr. 06, 2018USD ($)shares	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Business Combinations
Gain on sales of securities		$ 330	$ 878	$ 266
Cash paid for fractional shares	$ 1,595
Assets acquired:
Loans				336,446
Other assets, net				14,736
Liabilities assumed:
Deposits				416,628
Other liabilities				3,038
Other borrowings				62
Goodwill recorded in the merger		$ 83,753	$ 83,753	$ 83,752	$ 83,753
Tri Valley Bank
Business Combinations
Aggregate transaction value	$ 32,320
Shares issued in acquisition | shares	1,889,613
Fixed exchange ratio of company's common stock	0.0489
Issuance of 1,889,613 shares of common stock to Tri-Valley shareholders at $16.26 per share at Closing	$ 30,725
Total Consideration Paid	32,320
Liabilities assumed:
Goodwill recorded in the merger	$ 13,819

Business Combinations - United

Business Combinations - United American (Details) $ / shares in Units, $ in Thousands	May 04, 2018USD ($)$ / sharesshares	Apr. 06, 2018USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)
Business Combinations
Cash paid for fractional shares		$ 1,595
Assets acquired:
Securities available-for-sale					$ 63,723
Net loans					336,446
Premises and equipment, net					350
Other assets, net					14,736
Liabilities assumed:
Deposits					416,628
Other borrowings					62
Other liabilities					3,038
Goodwill recorded in the merger			$ 83,753	$ 83,753	$ 83,752
United American Bank
Business Combinations
Aggregate transaction value	$ 56,417
Fixed exchange ratio of company's common stock	2.1644
Shares issued in acquisition | shares	2,826,032
Total cash paid	$ 9,137
Issuance of 2,826,032 shares of common stock to United American shareholders at $16.73 per share at Closing	47,280
Total Consideration Paid	56,417
Cash paid for fractional shares	2
Liabilities assumed:
Goodwill recorded in the merger	24,270
Series A Preferred Stock | United American Bank
Business Combinations
Total cash paid	8,700
Series B Preferred Stock | United American Bank
Business Combinations
Total cash paid	$ 435
Series A and Series B Preferred Stock | United American Bank
Business Combinations
Cash issued per share | $ / shares	$ 1,000

Business Combinations (Details)

Business Combinations (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)companyloan	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)companyloan	Sep. 30, 2018USD ($)	Dec. 31, 2018companyloan
Business Combinations
Number of business banking franchises acquired | company	3		3		3
Combined business value after business combination	$ 3,200,000		$ 3,200,000
Other acquisition and integration related costs	661	$ 16	1,201	$ 5,452
Severance and retention acquisition costs		183		3,576
Merger-related costs	$ 661	$ 199	$ 1,201	$ 9,028
Number of loan classified as PCI loan | loan	0		0		0

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	May 04, 2018	Apr. 06, 2018
Goodwill
Goodwill	$ 83,753	$ 83,752	$ 83,753
Goodwill acquired		$ 38,089
BVF/CSNK
Goodwill
Goodwill acquired	13,044
Focus
Goodwill
Goodwill acquired	32,620
Tri Valley Bank
Goodwill
Goodwill					$ 13,819
Goodwill acquired	13,819
United American Bank
Goodwill
Goodwill				$ 24,270
Goodwill acquired	$ 24,270

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	1 Months Ended				9 Months Ended
	May 31, 2018	Apr. 30, 2018	Aug. 31, 2015	Nov. 30, 2014	Sep. 30, 2019	Dec. 31, 2018
United American Bank
Other Intangible Assets
Accumulated amortization					$ 1,530	$ 756
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					$ 416	222
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
Other Intangible Assets
Accumulated amortization					$ 3,320	2,770
Focus | Core deposit
Other Intangible Assets
Intangible assets acquired			$ 6,285
Useful life, amortization period			10 years
BVF/CSNK
Other Intangible Assets
Accumulated amortization					$ 933	$ 791
BVF/CSNK | Below market-value lease
Other Intangible Assets
Intangible assets acquired				$ 109
BVF/CSNK | Non-compete agreement
Other Intangible Assets
Intangible assets acquired				250
BVF/CSNK | Customer relationship and brokered relationship
Other Intangible Assets
Intangible assets acquired				$ 1,900
Useful life, amortization period				10 years

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands	Sep. 30, 2019USD ($)
Estimated Amortization Expense
2019	$ 2,214
2020	2,032
2021	1,590
2022	1,430
2023	1,307
2024	1,174
Thereafter	2,260
Total	12,007
United American Bank | Core deposit
Estimated Amortization Expense
2019	777
2020	665
2021	602
2022	553
2023	521
2024	499
Thereafter	1,520
Total	5,137
United American Bank | Below market-value lease
Estimated Amortization Expense
2019	255
2020	235
Total	490
Tri Valley Bank | Core deposit
Estimated Amortization Expense
2019	240
2020	208
2021	184
2022	167
2023	158
2024	152
Thereafter	451
Total	1,560
Tri Valley Bank | Below market-value lease
Estimated Amortization Expense
2019	18
2020	18
2021	18
2022	18
2023	18
2024	18
Thereafter	88
Total	196
Focus | Core deposit
Estimated Amortization Expense
2019	734
2020	716
2021	596
2022	502
2023	420
2024	346
Thereafter	201
Total	3,515
BVF/CSNK | Customer relationship and brokered relationship
Estimated Amortization Expense
2019	190
2020	190
2021	190
2022	190
2023	190
2024	159
Total	$ 1,109

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, 2019	Dec. 31, 2018
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	Sep. 30, 2019	Dec. 31, 2018
Net deferred tax assets
Net deferred tax assets	$ 21,699	$ 27,089
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, 2019	Dec. 31, 2018
Income Taxes
Low income housing investments	$ 3,035	$ 3,172
Future commitments	$ 273	$ 273

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments $ in Thousands	Sep. 30, 2019USD ($)
Future Commitments
2019	$ 14
2020	14
2021 through 2023	$ 245

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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Taxes
Low income housing tax credits	$ 106	$ 106	$ 319	$ 319
Low income housing investment expense	$ 106	$ 117	$ 317	$ 351

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details) $ in Thousands	Sep. 30, 2019USD ($)
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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 55	$ 62	$ 165	$ 186
Interest cost	264	237	792	711
Amortization of net actuarial loss	46	73	138	219
Net periodic benefit cost	365	372	1,095	1,116
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Interest cost	69	56	209	170	$ 227
Amortization of prior transition obligation	(24)	(16)	(73)	(48)
Net periodic benefit cost	$ 45	$ 40	$ 136	$ 122

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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Change in projected benefit obligation:
Projected benefit obligation at beginning of year			$ 6,903	$ 6,711	$ 6,711
Interest cost	$ 69	$ 56	209	$ 170	227
Actuarial loss (gain)					(35)
Projected benefit obligation at end of period	$ 7,112		$ 7,112		$ 6,903

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, 2019	Dec. 31, 2018
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 2,713	$ 2,573
Prior transition obligation	1,081	1,149
Accumulated other comprehensive loss	$ 3,794	$ 3,722

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 333,101	$ 459,043
I/O strip receivables	541	568
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	212,742	302,854
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	120,359	148,753
U.S. Government sponsored entities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale		7,436
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	120,359	148,753
Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	541	568
Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	212,742	302,854
Significant Other Observable Inputs (Level 2) | U.S. Government sponsored entities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale		7,436
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, 2019	Dec. 31, 2018
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 5,433	$ 702
Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	5,433	702
Commercial | Commercial
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	644	702
Commercial | Commercial | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	644	$ 702
CRE | Real estate
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	4,789
CRE | Real estate | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 4,789

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Tabular Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 14,494	$ 15,140
Carried at fair value
Impaired Loans Held-for-investment
Impaired loans held-for-investment	12,709	7,646
Specific valuation allowance	(7,276)	(6,944)
Impaired loans held-for-investment carried at fair value, net	5,433	702
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 1,785	$ 7,494

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, 2019	Dec. 31, 2018
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 14,494	$ 15,140
Additional provision (credit) for loan losses	399	7,042
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	12,709	7,646
Specific valuation allowance	7,276	6,944
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 1,785	$ 7,494

Fair Value - Quantitative Infor

Fair Value - Quantitative Information about Level 3 Fair Value Measurements (Details) - Non-recurring basis $ in Thousands	Sep. 30, 2019USD ($)item	Dec. 31, 2018USD ($)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	$ 5,433	$ 702
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	5,433	702
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	644	702
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	$ 644	$ 702
Commercial | Commercial | Significant Unobservable Inputs (Level 3) | Minimum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales - Impaired loan held for investment (as a percent) | item		0
Commercial | 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
CRE | 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	$ 4,789
CRE | 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	$ 4,789
CRE | 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, 2019	Dec. 31, 2018
Assets
Securities available-for-sale	$ 333,101	$ 459,043
Securities held-to-maturity	343,129	366,175
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	25,231	25,216
I/O strips receivables	541	568
Liabilities
Subordinated Debt.	39,507	39,369
Significant Other Observable Inputs (Level 2)
Assets
I/O strips receivables	541	568
Carrying amount
Assets
Cash and cash equivalents	415,783	164,568
Securities available-for-sale	333,101	459,043
Securities held-to-maturity	342,033	377,198
Loans (including loans held-for-sale), net	1,853,063	1,861,206
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	25,231	25,216
Accrued interest receivable	8,588	9,577
I/O strips receivables	541	568
Liabilities
Time deposits	151,040	147,560
Other deposits	2,537,950	2,489,972
Subordinated Debt.	39,507	39,369
Accrued interest payable	1,271	497
Carried at fair value
Assets
Cash and cash equivalents	415,783	164,568
Securities available-for-sale	333,101	459,043
Securities held-to-maturity	343,129	366,175
Loans (including loans held-for-sale), net	1,860,504	1,829,303
Accrued interest receivable	8,588	9,577
I/O strips receivables	541	568
Liabilities
Time deposits	151,561	147,916
Other deposits	2,537,950	2,489,972
Subordinated Debt.	40,407	38,969
Accrued interest payable	1,271	497
Carried at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	415,783	164,568
Securities available-for-sale	120,359	148,753
Accrued interest receivable	615	597
Carried at fair value | Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	212,742	310,290
Securities held-to-maturity	343,129	366,175
Loans (including loans held-for-sale), net	3,571	2,649
Accrued interest receivable	1,969	2,274
I/O strips receivables	541	568
Liabilities
Time deposits	151,561	147,916
Other deposits	2,537,950	2,489,972
Subordinated Debt.	40,407	38,969
Accrued interest payable	1,271	497
Carried at fair value | Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	1,856,933	1,826,654
Accrued interest receivable	$ 6,004	$ 6,706

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	9 Months Ended
	Sep. 30, 2019	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	756,903
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)	134,653
Nonqualified stock options
Equity Plan
Number of equity awards issued (in shares)	299,500

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options - USD ($)	9 Months Ended
	Sep. 30, 2019
Number of Shares
Outstanding at the beginning of the period (in shares)	1,570,603
Granted (in shares)	299,500
Exercised (in shares)	(92,003)
Forfeited or expired (in shares)	(22,550)
Outstanding at the end of the period (in shares)	1,755,550
Vested or expected to vest (in shares)	1,650,217
Exercisable at the end of the period (in shares)	1,147,730
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 10.76
Granted (in dollars per share)	12.16
Exercised (in dollars per share)	7.86
Forfeited or expired (in dollars per share)	15.70
Outstanding at the end of the period (in dollars per share)	$ 11.09
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	6 years 6 months 4 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	6 years 6 months 4 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	5 years 3 months 15 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars)	$ 3,371,810
Aggregate Intrinsic Value - Vested or expected to vest (in dollars)	3,169,501
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars)	$ 3,319,623

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, 2019	Sep. 30, 2018
Information Related to the Equity Plans
Cash received from option exercise	$ 723	$ 2,499
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	444,251	1,767,884
Cash received from option exercise	723,397	2,499,481
Tax benefit realized from option exercises	$ 44,244	$ 513,901
Weighted average fair value of options granted (in dollars per share)	$ 1.91	$ 3.07

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Stock Options (Details) - Options $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,424
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 9 months 26 days

Equity Plan - Assumptions Used

Equity Plan - Assumptions Used to Estimate Fair Value (Details)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
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)	24.00%	21.00%
Weighted average risk-free interest rate (as a percent)	2.23%	2.87%
Expected dividends (as a percent)	3.95%	2.62%

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) | shares	193,298
Granted (in shares) | shares	134,653
Vested (in shares) | shares	(82,498)
Forfeited or expired (in shares) | shares	(6,000)
Nonvested shares at the end of the period (in shares) | shares	239,453
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) | $ / shares	$ 11.04
Granted (in dollars per share) | $ / shares	12.16
Vested (in dollars per share) | $ / shares	12.37
Forfeited or expired (in dollars per share) | $ / shares	17.11
Nonvested shares at the end of the period (in dollars per share) | $ / shares	$ 11.23

Equity Plan - Unrecognized Co_2

Equity Plan - Unrecognized Compensation Cost - Nonvested Restricted Stock Awards (Details) - Restricted stock $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 2,692
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	2 years 3 months 15 days

Subordinate Debt (Details)

Subordinate Debt (Details) - USD ($)	Jun. 01, 2022	Sep. 30, 2019	May 26, 2017
Debt Instrument [Line Items]
Principal amount			$ 40,000,000
Fixed interest rate (as a percent)		5.25%
LIBOR
Debt Instrument [Line Items]
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, 2019	Dec. 31, 2019	Dec. 31, 2018
Capital Requirements
Capital conservation buffer (as a percent)	2.50%		1.875%
Forecast
Capital Requirements
Capital conservation buffer (as a percent)		2.50%
HBC (Wholly-owned Subsidiary)
Capital Requirements
Capital conservation buffer (as a percent)	2.50%		1.875%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Total Capital (to risk-weighted assets)
Actual, Amount	$ 367,466	$ 344,597
Required For Capital Adequacy Purposes, Amount	$ 238,455	$ 227,514
Actual, Ratio (as a percent)	16.20%	15.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.50%	9.875%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 301,444	$ 276,675
Required For Capital Adequacy Purposes, Amount	$ 193,035	$ 181,435
Actual, Ratio (as a percent)	13.30%	12.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.50%	7.875%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 301,444	$ 276,675
Required For Capital Adequacy Purposes, Amount	$ 158,970	$ 146,876
Actual, Ratio (as a percent)	13.30%	12.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	6.375%
Tier 1 Capital (to average assets)
Actual, Amount	$ 301,444	$ 276,675
Required For Capital Adequacy Purposes, Amount	$ 120,086	$ 124,726
Actual, Ratio (as a percent)	10.00%	8.90%
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	$ 346,087	$ 322,283
To Be Well Capitalized Under Regulatory Requirements, Amount	226,966	230,275
Required For Capital Adequacy Purposes, Amount	$ 238,314	$ 227,397
Actual, Ratio (as a percent)	15.20%	14.00%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	10.00%	10.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.50%	9.875%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 319,572	$ 293,730
To Be Well Capitalized Under Regulatory Requirements, Amount	181,573	184,220
Required For Capital Adequacy Purposes, Amount	$ 192,921	$ 181,342
Actual, Ratio (as a percent)	14.10%	12.80%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	8.00%	8.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.50%	7.875%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 319,572	$ 293,730
To Be Well Capitalized Under Regulatory Requirements, Amount	147,528	149,679
Required For Capital Adequacy Purposes, Amount	$ 158,876	$ 146,800
Actual, Ratio (as a percent)	14.10%	12.80%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	6.50%	6.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	6.375%
Tier 1 Capital (to average assets)
Actual, Amount	$ 319,572	$ 293,730
To Be Well Capitalized Under Regulatory Requirements, Amount	150,040	155,832
Required For Capital Adequacy Purposes, Amount	$ 120,032	$ 124,666
Actual, Ratio (as a percent)	10.60%	9.40%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	5.00%	5.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	4.00%	4.00%

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Aug. 27, 2019	Aug. 26, 2019	Dec. 31, 2018
Cash dividend
Common stock, shares authorized	100,000,000			100,000,000	100,000,000	60,000,000	60,000,000
Subordinated Debt.	$ 39,507			$ 39,507			$ 39,369
HBC (Wholly-owned Subsidiary)
Cash dividend
Cash dividend available	27,636			27,636
Dividends paid to parent company	$ 5,000	$ 5,500	$ 5,000	$ 15,500

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue Recognition
Non-interest Income In-scope of Topic 606	$ 1,032	$ 1,107	$ 3,370	$ 2,981
Non-interest Income Out-of-scope of Topic 606	1,586	1,099	4,481	4,200
Total noninterest income	$ 2,618	$ 2,206	$ 7,851	$ 7,181

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Noninterest Expense
Salaries and employee benefits	$ 10,467	$ 10,536	$ 31,935	$ 31,726
Occupancy and equipment	1,550	1,559	4,634	3,927
Professional fees	789	721	2,360	2,038
Merger-related costs	661	199	1,201	9,028
Software subscriptions	601	555	1,746	1,747
Amortization of intangible assets	554	631	1,661	1,336
Insurance expense	479	430	1,354	1,236
Data processing	454	525	1,865	1,501
Recovery of legal fees				(922)
Other	2,354	2,572	7,516	6,963
Total noninterest expense	17,909	17,728	54,272	58,580
Severance and retention expense		183		3,576
Other acquisition and integration related costs	$ 661	$ 16	$ 1,201	$ 5,452

Lease (Details)

Lease (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)	Jun. 30, 2019ft²
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Option to renew	true
Operating Lease Cost (Cost resulting from lease payments)	$ 1,035
Operating Lease - Operating Cash Flows (Fixed Payments)	1,040
Operating Lease - Liabilities	7,089
Operating Lease - ROU assets	$ 7,089
Weighted Average Lease Term - Operating Leases	3 years 7 months 2 days
Weighted Average Discount Rate - Operating Leases	5.24%
Area of office space | ft²		54,910
ASU 2018-11
Lessee, Lease, Description [Line Items]
Operating Lease - Liabilities	$ 7,089
Operating Lease - ROU assets	$ 7,089

Lease - Maturity Analysis (Deta

Lease - Maturity Analysis (Details) $ in Thousands	Sep. 30, 2019USD ($)
Operating Lease Payments Due
2019	$ 1,024
2020	2,353
2021	1,565
2022	1,306
2023	769
Thereafter	784
Total undiscounted cash flows	7,801
Discount on cash flows	(712)
Total lease liability	$ 7,089

Business Segment Information -

Business Segment Information - Business Segments (Details)	9 Months Ended
	Sep. 30, 2019segmentitem
Business Segment Information
Number of business segments | segment	2
Focus
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, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Operating Income
Interest income	$ 33,250			$ 34,610			$ 100,188	$ 94,467
Total interest expense	2,625			2,159			7,605	5,504
Net interest income	30,625			32,451			92,583	88,963
Provision (credit) for loan losses	(576)			(425)			(2,377)	7,279
Net interest income after provision	31,201			32,876			94,960	81,684
Noninterest income	2,618			2,206			7,851	7,181
Noninterest expense	17,909			17,728			54,272	58,580
Income before income taxes	15,910			17,354			48,539	30,285
Income tax (benefit) expense	4,633			4,979			13,763	8,186
Net income	11,277	$ 11,353	$ 12,146	12,375	$ 915	$ 8,809	34,776	22,099
Total assets	3,182,471			3,192,910			3,182,471	3,192,910	$ 3,096,562
Loans, net of deferred fees	1,875,387			1,899,387			1,875,387	1,899,387	1,886,405
Goodwill	83,753			83,752			83,753	83,752	$ 83,753
Noncash Merger Related Costs	661			199			1,201	9,028
Banking
Operating Income
Interest income	30,371			30,425			91,388	83,781
Intersegment interest allocations	303			601			909	1,304
Total interest expense	2,625			2,159			7,605	5,504
Net interest income	28,049			28,867			84,692	79,581
Provision (credit) for loan losses	(1,019)			(671)			(2,655)	6,958
Net interest income after provision	29,068			29,538			87,347	72,623
Noninterest income	2,488			2,011			7,361	6,628
Noninterest expense	16,204			16,045			49,189	53,813
Intersegment expense allocations	125			172			378	574
Income before income taxes	15,477			15,676			45,897	26,012
Income tax (benefit) expense	4,505			4,483			12,982	6,923
Net income	10,972			11,193			32,915	19,089
Total assets	3,119,367			3,107,897			3,119,367	3,107,897
Loans, net of deferred fees	1,831,172			1,828,379			1,831,172	1,828,379
Goodwill	70,709			70,708			70,709	70,708
Noncash Merger Related Costs	661			199			1,201	9,028
Factoring
Operating Income
Interest income	2,879			4,185			8,800	10,686
Intersegment interest allocations	(303)			(601)			(909)	(1,304)
Net interest income	2,576			3,584			7,891	9,382
Provision (credit) for loan losses	443			246			278	321
Net interest income after provision	2,133			3,338			7,613	9,061
Noninterest income	130			195			490	553
Noninterest expense	1,705			1,683			5,083	4,767
Intersegment expense allocations	(125)			(172)			(378)	(574)
Income before income taxes	433			1,678			2,642	4,273
Income tax (benefit) expense	128			496			781	1,263
Net income	305			1,182			1,861	3,010
Total assets	63,104			85,013			63,104	85,013
Loans, net of deferred fees	44,215			71,008			44,215	71,008
Goodwill	$ 13,044			$ 13,044			$ 13,044	$ 13,044

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 24, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2018
Subsequent Event [Line Items]
Assets		$ 3,182,471			$ 3,192,910			$ 3,096,562
Loans, net		1,849,492						1,858,557
Deposits		$ 2,688,990						$ 2,637,532
Quarterly cash dividends declared to holders of common stock		$ 0.12	$ 0.12	$ 0.12	$ 0.11	$ 0.11	$ 0.11
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.12
Presidio bank
Subsequent Event [Line Items]
Assets		$ 877,400
Loans, net		692,900
Deposits		$ 754,500