Heritage Commerce (HTBK) 10-Q 8 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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		59,737,467
Entity Central Index Key	0001053352
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 36,998	$ 49,447
Other investments and interest-bearing deposits in other financial institutions	406,399	407,923
Total cash and cash equivalents	443,397	457,370
Securities available-for-sale, at fair value	373,570	404,825
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $55 at March 31, 2020 (fair value of $356,153 at March 31, 2020 and $368,107 at December 31, 2019)	348,044	366,560
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	2,415	1,052
Loans, net of deferred fees	2,553,911	2,533,844
Allowance for credit losses on loans(1)	(44,703)	(23,285)
Loans, net	2,509,208	2,510,559
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	33,339	29,842
Company-owned life insurance	76,485	76,027
Premises and equipment, net	9,025	8,250
Goodwill	167,371	167,420
Other intangible assets	19,557	20,415
Accrued interest receivable and other assets	95,751	67,143
Total assets	4,078,162	4,109,463
Deposits:
Demand, noninterest-bearing	1,444,534	1,450,873
Demand, interest-bearing	810,425	798,375
Savings and money market	949,076	982,430
Time deposits - under $250	51,009	54,361
Time deposits - $250 and over	96,540	99,882
CDARS - interest-bearing demand, money market and time deposits	15,055	28,847
Total deposits	3,366,639	3,414,768
Subordinated debt, net of issuance costs	39,600	39,554
Other short-term borrowings		328
Accrued interest payable and other liabilities	100,482	78,105
Total liabilities	3,506,721	3,532,755
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at March 31, 2020 and December 31, 2019
Common stock, no par value; 100,000,000 shares authorized at March 31, 2020 and authorized at December 31, 2019; 59,568,219 shares issued and outstanding at March 31, 2020 and 59,368,156 shares issued and outstanding at December 31, 2019	491,347	489,745
Retained earnings	84,803	96,741
Accumulated other comprehensive loss	(4,709)	(9,778)
Total shareholders' equity	571,441	576,708
Total liabilities and shareholders' equity	$ 4,078,162	$ 4,109,463

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Securities held-to-maturity
Allowance for credit losses	$ (55)
Securities held-to-maturity, fair value (in dollars)	$ 356,153	$ 368,107
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	100,000,000
Common stock, shares issued	59,568,219	59,368,156
Common stock, shares outstanding	59,568,219	59,368,156

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest income:
Loans, including fees	$ 34,782	$ 26,807
Securities, taxable	3,948	4,509
Securities, exempt from Federal tax	511	548
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	1,701	1,585
Total interest income	40,942	33,449
Interest expense:
Deposits	1,785	1,836
Subordinated debt	577	571
Total interest expense	2,362	2,407
Net interest income before provision for credit losses on loans (1)	38,580	31,042
Provision (credit) for credit losses on loans(1)	13,270	(1,061)
Net interest income after provision for credit losses on loans	25,310	32,103
Noninterest income:
Service charges and fees on deposit accounts	969	1,161
Gain on the disposition of foreclosed assets	791
Increase in cash surrender value of life insurance	458	330
Servicing income	183	191
Gain on sales of securities	100
Gain on sales of SBA loans	67	139
Other	625	647
Total noninterest income	3,193	2,468
Noninterest expense:
Salaries and employee benefits	14,203	10,770
Occupancy and equipment	1,772	1,506
Professional fees	1,435	818
Other	8,364	4,824
Total noninterest expense	25,774	17,918
Income before income taxes	2,729	16,653
Income tax expense	868	4,507
Net income	$ 1,861	$ 12,146
Earnings per common share:
Basic (in dollars per share)	$ 0.03	$ 0.28
Diluted (in dollars per share)	$ 0.03	$ 0.28

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 1,861	$ 12,146
Other comprehensive income:
Change in net unrealized holding gains on available-for-sale securities and I/O strips	7,177	4,871
Deferred income taxes	(2,081)	(1,467)
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity	(13)	(26)
Deferred income taxes	4	8
Reclassification adjustment for gains realized in income	(100)
Deferred income taxes	29
Change in unrealized gains on securities and I/O strips, net of deferred income taxes	5,016	3,386
Change in net pension and other benefit plan liability adjustment	75	12
Deferred income taxes	(22)	(4)
Change in pension and other benefit plan liability, net of deferred income taxes	53	8
Other comprehensive income	5,069	3,394
Total comprehensive income	$ 6,930	$ 15,540

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income / (Loss)	Total
Balance at Dec. 31, 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
Increase (Decrease) in Shareholders' Equity
Cumulative effect of change in accounting principles (Note 1)		(6,062)		(6,062)
Adjusted balances	$ 489,745	90,679	(9,778)	570,646
Balance at Dec. 31, 2019	$ 489,745	96,741	(9,778)	576,708
Balance (in shares) at Dec. 31, 2019	59,368,156
Increase (Decrease) in Shareholders' Equity
Net income		1,861		1,861
Other comprehensive income (loss)			5,069	5,069
Amortization of restricted stock awards, net of forfeitures and taxes	$ 348			348
Cash dividend declared		(7,737)		(7,737)
Stock option expense, net of forfeitures and taxes	148			148
Stock options exercised	$ 1,106			1,106
Stock options exercised (in shares)	200,063
Balance at Mar. 31, 2020	$ 491,347	$ 84,803	$ (4,709)	$ 571,441
Balance (in shares) at Mar. 31, 2020	59,568,219

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.13	$ 0.12

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,861	$ 12,146
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	553	516
(Gain) loss on sale of securities available-for-sale	(100)
(Gain) on sale of SBA loans	(67)	(139)
Proceeds from sale of SBA loans originated for sale	916	1,935
SBA loans originated for sale	(2,212)	(2,363)
Provision (credit) for credit losses on loans(1)	13,270	(1,061)
Increase in cash surrender value of life insurance	(458)	(330)
Depreciation and amortization	229	188
Amortization of other intangible assets	858	553
Stock option expense, net	148	166
Amortization of restricted stock awards, net	348	271
Amortization of subordinated debt issuance costs	46	45
Effect of changes in:
Accrued interest receivable and other assets	(3,258)	5,145
Accrued interest payable and other liabilities	(2,412)	(4,062)
Net cash provided by operating activities	9,722	13,010
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities/paydowns/calls of securities available-for-sale	11,811	11,242
Maturities/paydowns/calls of securities held-to-maturity	17,600	9,808
Proceeds from sales of securities available-for-sale	26,513
Net change in loans	(20,030)	38,618
Changes in Federal Home Loan Bank stock and other investments	(3,497)	(5)
Purchase of premises and equipment	(1,004)	(49)
Net cash provided by investing activities	31,393	59,614
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(48,129)	2,712
Net change in short-term borrowings	(328)
Exercise of stock options	1,106	269
Payment of cash dividends	(7,737)	(5,196)
Net cash used in financing activities	(55,088)	(2,215)
Net (decrease) increase in cash and cash equivalents	(13,973)	70,409
Cash and cash equivalents, beginning of period	457,370	164,568
Cash and cash equivalents, end of period	443,397	234,977
Supplemental disclosures of cash flow information:
Interest paid	1,824	1,724
Income taxes paid (net of refunds)	(159)
Income taxes paid (net of refunds)		8
Supplemental schedule of non-cash activity:
Recording of right to use assets in exchange for lease obligations	$ 25,066	$ 9,566

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2020
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, 2019. HBC is a commercial bank serving customers primarily located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. CSNK Working Capital Finance Corp. a California corporation, dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC, and provides business-essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10% of revenue for HBC or the Company. The Company reports its results for two segments: banking and factoring. The Company’s management uses segment results in its operating and strategic planning. In management’s opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates. The results for the three months ended March 31, 2020 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2020. COVID-19 Capital and Liquidity While the Company believes that it has sufficient capital to withstand an extended economic recession brought about by COVID-19, its reported and regulatory capital ratios could be adversely impacted by further credit losses. The Company relies on cash on hand as well as dividends from its subsidiary bank to service its debt. If the Company’s capital deteriorates such that its subsidiary bank is unable to pay dividends to it for an extended period of time, the Company may not be able to service its debt. The Company maintains access to multiple sources of liquidity. Wholesale funding markets have remained open to us, but rates for short term funding have recently been volatile. If funding costs are elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Company’s deposit customers to withdraw their funds, the Company might become more reliant on volatile or more expensive sources of funding. Asset Valuation While certain valuation assumptions and judgments will change to account for pandemic-related circumstances such as widening credit spreads, the Company does not anticipate significant changes in methodology used to determine the fair value of assets measured in accordance with GAAP. The extent to which the COVID-19 pandemic will impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. Those developments and factors include the duration and spread of the pandemic, its severity, the actions to contain the pandemic or address its impact, and how quickly and to what extent normal economic and operating conditions can resume. We do not yet know the full extent of the impact. However, the effects could have a material adverse impact on our business, asset valuations, financial condition and results of operations. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, investments, loans, or deferred tax assets. 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, United American Bank (“United American”) on May 4, 2018, and Presidio Bank (“Presidio”) on October 11, 2019, 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, a below market value lease intangible asset, arising from the United American, Tri-Valley and an above the market lease from the Presidio acquisition. 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. The above market value lease intangible assets are being amortized on the straight line method over five years for Presidio. 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in prior GAAP with a methodology that reflects expected life-of-instrument credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As Current Expected Credit Losses (“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 Company adopted CECL on January 1, 2020, using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods after January 1, 2020, are presented under Topic 326, while prior prior period amounts continue to be reported in accordance with previously applicable GAAP. The following table shows the impact of adopting CECL on January 1, 2020: As Reported Pre- Impact of Under Topic 326 Topic 326 Topic 326 Adoption Adoption (Dollars in thousands) Assets: Allowance for credit losses on debt securities Held to maturity municipal securities $ 58 $ - $ 58 Loans Commercial 6,790 10,453 (3,663) CRE - owner occupied 6,994 3,825 3,169 CRE - non-owner occupied 11,672 3,760 7,912 Land and construction 1,458 2,621 (1,163) Home equity 1,321 2,244 (923) Multifamily 1,253 57 1,196 Residential mortgage 678 243 435 Consumer and other 1,689 82 1,607 Allowance for credit losses on loans $ 31,855 $ 23,285 $ 8,570 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 679 $ 886 $ (207) While the CARES Act allows banks to delay implementation, Securities and Exchange Commission (“SEC”) informal guidance indicated that a delay in implementation would result in adoption later in 2020 and would need to be retroactively recorded as of January 1, 2020. For CECL modeling purposes, the Company uses forecast data for the state of California including Gross Domestic Product (“GDP”) and unemployment projections provided by the California Economic Forecast (“CEF”, www.CaliforniaForecast.com). At January 1, 2020, the forecast for California GDP for 2020 was an annual increase in the low single digits and the forecasted California unemployment rate for 2020 was in the mid single digits. In March 2020, the CEF forecast was revised for GDP in the negative low single digits and peak unemployment in the low double digits. As of the implementation date of January 1, 2020, the Company recognized an increase of $8.6 million to its allowance for credit losses for loans. The majority of this increase is related to loan portfolios acquired in our recent acquisitions that under the previous methodology were covered by the purchase discount on acquired loans. The cumulative-effect adjustment as a result of the adoption of this guidance was recorded, net of tax of $2.4 million, as a $6.1 million reduction to retained earnings effective January 1, 2020. As of the implementation date, there was a $58,000 allowance for losses recorded on the Company’s held-to-maturity municipal investment securities portfolio. For the first quarter of 2020, there was a reduction of $3,000 to the allowance for losses on the Company’s held-to-maturity municipal investment securities portfolio. This reduction was the result of a reduction in municipal securities amortized balances resulting from regular payments. The allowance for losses on held-to-maturity securities is based on historic loss rates of municipal securities by bond ratings and change in bond ratings of the municipal securities held by the Company will impact the reserve. The bond ratings for the Company’s municipal investment securities at March 31, 2020 were consistent with the ratings at January 1, 2020. Any ratings downgrades on these securities will impact the allowance for losses on these securities. In the normal course of business, the Company makes commitments to extend credit to its customers as long as there are no violations of any conditions established in contractual arrangements. These commitments are obligations that represent a potential credit risk to the Company, yet are not reflected in any form within the Company’s consolidated balance sheets. As of the implementation date, there was a reduction of $207,000 to allowance for losses recorded for the Company’s off-balance sheet credit exposures . The reduction in reserves for off-balance sheet credit exposures at implementation was primarily driven by applying a lower estimated CECL loss factors for unfunded commercial loan and construction loan commitments. For the first quarter of 2020, there was an increase of $305,000 to the allowance for losses for the Company’s off-balance sheet credit exposures. The increase in the allowance for losses for off-balance sheet credit exposures in the first quarter 2020 was driven by increased loss factors in the CECL model for all loan segments with off-balance sheet exposures which resulted from deterioration in the economic forecast assumptions used in the CECL model. In January 2017, the FASB issued 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. The amendments of the update became effective for the Company on January 1, 2020.

Shareholders' Equity and Earnin

Shareholders' Equity and Earnings Per Share	3 Months Ended
	Mar. 31, 2020
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 908,276 and 539,000 stock options for the three months ended March 31, 2020 and 2019, 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 March 31, 2020 2019 (Dollars in thousands, except per share amounts) Net income $ 1,861 $ 12,146 Weighted average common shares outstanding for basic earnings per common share 59,286,927 43,108,208 Dilutive potential common shares 907,098 562,133 Shares used in computing diluted earnings per common share 60,194,025 43,670,341 Basic earnings per share $ 0.03 $ 0.28 Diluted earnings per share $ 0.03 $ 0.28

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (“AOCI”)	3 Months Ended
	Mar. 31, 2020
Accumulated Other Comprehensive Income (“AOCI”)
Accumulated Other Comprehensive Income (“AOCI”)	3) Accumulated Other Comprehensive Income (Loss) (“AOCI”) The following table reflects the changes in AOCI by component for the periods indicated: Three Months Ended March 31, 2020 and 2019 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(1) Total (Dollars in thousands) Beginning balance January 1, 2020, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) Other comprehensive income (loss) before reclassification, net of taxes 5,096 — 4 5,100 Amounts reclassified from other comprehensive income (loss), net of taxes (71) (9) 49 (31) Net current period other comprehensive income (loss), net of taxes 5,025 (9) 53 5,069 Ending balance March 31, 2020, net of taxes $ 6,627 $ 289 $ (11,625) $ (4,709) Beginning balance January 1, 2019, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Other comprehensive (loss) before reclassification, net of taxes 3,404 — (7) 3,397 Amounts reclassified from other comprehensive income (loss), net of taxes — (18) 15 (3) Net current period other comprehensive income (loss), net of taxes 3,404 (18) 8 3,394 Ending balance March 31, 2019, net of taxes $ (1,603) $ 326 $ (7,710) $ (8,987) (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 March 31, Affected Line Item Where Details About AOCI Components 2020 2019 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 100 $ — Gain on sales of securities (29) — Income tax expense 71 — Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 13 26 Interest income on taxable securities (4) (8) Income tax expense 9 18 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 15 25 Actuarial losses (85) (46) (70) (21) Other noninterest expense 21 6 Income tax benefit (49) (15) Net of tax Total reclassification for the period $ 31 $ 3 (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	3 Months Ended
	Mar. 31, 2020
Securities
Securities	4) Securities The amortized cost and estimated fair value of securities at March 31, 2020 and December 31, 2019 were as follows: Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair March 31, 2020 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 244,968 $ 6,868 $ — $ — $ 251,836 U.S. Treasury 119,192 2,542 — — 121,734 Total $ 364,160 $ 9,410 $ — $ — $ 373,570 Gross Gross Estimated Allowance Amortized Unrealized Unrealized Fair for Credit March 31, 2020 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 270,211 $ 6,746 $ (1) $ 276,956 $ — Municipals - exempt from Federal tax 77,888 1,309 — 79,197 (55) Total $ 348,099 $ 8,055 $ (1) $ 356,153 $ (55) Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 283,598 $ 934 $ (171) $ 284,361 U.S. Treasury 118,939 1,525 — 120,464 Total $ 402,537 $ 2,459 $ (171) $ 404,825 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 285,344 $ 1,206 $ (968) $ 285,582 Municipals - exempt from Federal tax 81,216 1,313 (4) 82,525 Total $ 366,560 $ 2,519 $ (972) $ 368,107 Securities with unrealized losses at March 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2020 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ — $ — $ 1,183 $ (1) $ 1,183 $ (1) Total $ — $ — $ 1,183 $ (1) $ 1,183 $ (1) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Total $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Securities held-to-maturity: Agency mortgage-backed securities $ 50,060 $ (178) $ 88,128 $ (790) $ 138,188 $ (968) Municipals - exempt from Federal tax 1,556 (4) — — 1,556 (4) Total $ 51,616 $ (182) $ 88,128 $ (790) $ 139,744 $ (972) There were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders’ equity. At March 31, 2020, the Company held 442 securities (128 available-for-sale and 314 held‑to‑maturity), of which one had fair value below amortized cost. At March 31, 2020, there were $1,183,000 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 $1,000 at March 31, 2020. 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. Therefore, the Company does not consider these debt securities to have credit related losses as of March 31, 2020. The agency mortgage-backed securities and U.S. Treasury securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses.Therefore, for those securities, we do not record expected credit losses. The proceeds from sales of securities and the resulting gains and losses were as follows for the periods indicated: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Proceeds $ 26,513 $ — Gross gains 100 — Gross losses — — The amortized cost and estimated fair values of securities as of March 31, 2020 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 $ 74,668 75,759 Due after one through five years 44,524 45,975 Agency mortgage-backed securities 244,968 251,836 Total $ 364,160 $ 373,570 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 1,446 $ 1,451 Due after one through five years 6,410 6,574 Due after five through ten years 36,178 36,812 Due after ten years 33,854 34,360 Agency mortgage-backed securities 270,211 276,956 Total $ 348,099 $ 356,153 Securities with amortized cost of $41,408,000 and $32,773,000 as of March 31, 2020 and December 31, 2019 were pledged to secure public deposits and for other purposes as required or permitted by law or contract. The table below presents a rollforward by major security type for the three months ended March 31, 2020 of the allowance for credit losses on debt securities held-to-maturity held at period end: Municipals (Dollars in thousands) Beginning balance January 1, 2020 $ - Impact of adopting Topic 326 58 Provision (credit) for credit loss (3) Ending balance March 31, 2020 $ 55

Allowance for Credit Losses on

Allowance for Credit Losses on Loans	3 Months Ended
	Mar. 31, 2020
Allowance for Credit Losses on Loans
Allowance for Credit Losses on Loans	5) Allowance for Credit Losses on Loans The allowance for credit losses on loans was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The loan portfolio is classified into eight segments of loans - commercial, commercial real estate – owner occupied, commercial real estate – non-owner occupied, land and construction, home equity, multifamily, residential mortgage and consumer and other. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans primarily rely on the identified cash flows of the borrower for repayment and secondarily on the underlying collateral provided by the borrower. However, the cash flows of the borrowers may not be as expected and the collateral securing these loans may vary in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable, inventory or equipment and may incorporate a personal guarantee; however, some loans may be unsecured. Commercial Real Estate Commercial real estate loans rely primarily on the cash flows of the properties securing the loan and secondarily on the value of the property that is securing the loan. Commercial real estate loans comprise two segments differentiated by owner occupied commercial real estate and non-owner commercial real estate. Owner occupied commercial real estate loans are secured by commercial properties that are at least 50% occupied by the borrower or borrower affiliate. Non-owner occupied commercial real estate loans are secured by commercial properties that are less than 50% occupied by the borrower or borrower affiliate. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. Land and Construction Land and construction loans are generally based on estimates of costs and value associated with the complete project. Construction loans usually involve the disbursement of funds with repayment substantially dependent on the success of the completion of the project. Sources of repayment for these loans may be permanent loans from HBC or other lenders, or proceeds from the sales of the completed project. These loans are monitored by on-site inspections and are considered to have higher risk than other real estate loans due to the final repayment dependent on numerous factors including general economic conditions. Home Equity Home equity loans are secured by 1-4 family residences that are generally owner occupied. Repayment of these loans depends primarily on the personal income of the borrower and secondarily by the value of the property securing the loan which can be impacted by changes in economic conditions such as the unemployment rate and property values. Multifamily Multifamily loans are loans on 5+ residential properties. These loans rely primarily on the cash flows of the properties securing the loan for repayment and secondarily on the value of the properties securing the loan. The cash flows of these borrowers can fluctuate along with the values of the underlying property depending on general economic conditions. Residential Mortgages Residential mortgage loans are secured by 1-4 family residences which are generally owner-occupied. Repayment of these loans depends primarily on the personal income of the borrower and secondarily by the value of the property securing the loan which can be impacted by changes in economic conditions such as the unemployment rate and property values. Consumer and Other Consumer and other loans are secured by personal property or are unsecured and rely primarily on the income of the borrower for repayment and secondarily on the collateral value for secured loans. Borrower income and collateral value can vary dependent on economic conditions. Loans by portfolio segment and the allowance for credit losses on loans were as follows for the periods indicated: March 31, December 31, 2020 2019 (Dollars in thousands) Loans held-for-investment: Commercial $ 682,280 $ 603,345 Real estate: CRE - owner occupied 543,164 548,907 CRE - non-owner occupied 755,008 767,821 Land and construction 153,358 147,189 Home equity 117,768 151,775 Multifamily 172,875 180,623 Residential mortgages 96,271 100,759 Consumer and other 33,445 33,744 Loans 2,554,169 2,534,163 Deferred loan fees, net (258) (319) Loans, net of deferred fees 2,553,911 2,533,844 Allowance for credit losses on loans (1) (44,703) (23,285) Loans, net $ 2,509,208 $ 2,510,559 (1) Allowance for credit losses on loans at March 31, 2020, Allowance for loan losses for the prior periods The loss estimates for each segment are derived using a discounted cash flow analysis that incorporates a forecast of economic factors that have historic correlation to loan losses. The most significant economic factor used in the calculation of estimated loan losses is the California unemployment rate which is used for each segment. California GDP, and California retail trade earnings, California home price index, and a commercial real estate value index are secondary economic factors used with California unemployment rate in various loan segments. A four quarter forecast of each economic factor is used for each loan segment and the economic factors are assumed to revert to the historic mean over an eight quarter period after the four quarter forecast period. As of the CECL implementation date of January 1, 2020, the Company recognized an increase of $8,570,000 to its allowance for credit losses for loans. The majority of this increase is related to loan portfolios acquired in our recent acquisitions that under the previous methodology where reserves were covered by the purchase discount on acquired loans. The cumulative-effect adjustment as a result of the adoption of CECL was recorded, net of tax of $2,357,000, as a $6,062,000 reduction to retained earnings effective January 1, 2020. The provision for credit losses on loans was $13,270,000 for the first quarter 2020 which was primarily driven by a deteriorated economic forecast at March 31, 2020 compared to the economic forecast at January 1, 2020. At January 1, 2020 the forecast for California GDP for 2020 was an annual increase in the low single digits and the forecasted California unemployment rate for 2020 was in the mid single digits. The forecast at March 31, 2020 incorporates the impact of the Coronavirus pandemic and the California GDP forecast for 2020 was revised to negative low single digits and peak California unemployment in the low double digits. The total allowance for credit losses on loans at March 31, 2020 was $44,703,000. Changes in the allowance for credit losses on loans were as follows for the three months ended March 31, 2020: CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgage and Other Total (Dollars in thousands) Beginning of period balance $ 10,453 $ 3,825 $ 3,760 $ 2,621 $ 2,244 $ 57 $ 243 $ 82 $ 23,285 Adoption of Topic 326 (3,663) 3,169 7,912 (1,163) (923) 1,196 435 1,607 8,570 Balance at adoption on January 1, 2020 6,790 6,994 11,672 1,458 1,321 1,253 678 1,689 31,855 Charge-offs (670) — — — — — — (3) (673) Recoveries 209 — — 19 23 — — — 251 Net (charge-offs) recoveries (461) — — 19 23 — — (3) (422) Provision for credit losses on loans 6,472 743 3,973 1,126 402 369 30 155 13,270 End of period balance $ 12,801 $ 7,737 $ 15,645 $ 2,603 $ 1,746 $ 1,622 $ 708 $ 1,841 $ 44,703 Changes in the allowance for loan losses were as follows for the three months ended March 31, 2019: Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Charge-offs (226) — — (226) Recoveries 715 42 — 757 Net recoveries 489 42 — 531 Provision (credit) for loan losses (1,993) 958 (26) (1,061) End of period balance $ 15,557 $ 11,671 $ 90 $ 27,318 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 as follows at year‑end: December 31, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,835 $ — $ — $ 1,835 Collectively evaluated for impairment 8,618 12,750 82 21,450 Total allowance balance $ 10,453 $ 12,750 $ 82 $ 23,285 Loans: Individually evaluated for impairment $ 4,810 $ 5,454 $ — $ 10,264 Collectively evaluated for impairment 626,737 1,877,280 19,882 2,523,899 Total loan balance $ 631,547 $ 1,882,734 $ 19,882 $ 2,534,163 The following table presents the amortized cost basis of nonperforming loans and loans past due over 90 days and still accruing at March 31, 2020: Restructured Nonaccrual Nonaccrual and Loans with no with over 90 Days Allowance for Allowance for Past Due Credit Credit and Still Losses Losses Accruing Total (Dollars in thousands) Commercial $ 781 $ 1,827 $ 442 $ 3,050 Real estate: CRE - Owner Occupied 7,346 — — 7,346 CRE - Non-Owner Occupied — — — — Land and construction — — — — Home equity 126 — — 126 Multifamily — — — — Residential mortgages — — — — Consumer — 1,566 — 1,566 Total $ 8,253 $ 3,393 $ 442 $ 12,088 The following table presents nonperforming loans by class at December 31, 2019: Restructured and Loans over 90 Days Past Due and Still Nonaccrual Accruing Total (Dollars in thousands) Commercial $ 3,444 $ 1,153 $ 4,597 Real estate: CRE 5,094 — 5,094 Home equity 137 — 137 Total $ 8,675 $ 1,153 $ 9,828 The following tables presents the aging of past due loans by class for the periods indicated: March 31, 2020 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 7,256 $ 1,130 $ 2,158 $ 10,544 $ 671,736 $ 682,280 Real estate: CRE - Owner Occupied 693 1,184 5,094 6,971 536,193 543,164 CRE - Non-Owner Occupied — — — — 755,008 755,008 Land and construction — — — — 153,358 153,358 Home equity 571 125 — 696 117,072 117,768 Multifamily — — — — 172,875 172,875 Residential mortgages — — — — 96,271 96,271 Consumer — — — — 33,445 33,445 Total $ 8,520 $ 2,439 $ 7,252 $ 18,211 $ 2,535,958 $ 2,554,169 December 31, 2019 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 4,770 $ 2,097 $ 3,217 $ 10,084 $ 593,261 $ 603,345 Real estate: CRE - Owner Occupied — — 5,094 5,094 543,813 548,907 CRE - Non-Owner Occupied — — — — 767,821 767,821 Land and construction — — — — 147,189 147,189 Home equity — 137 — 137 151,638 151,775 Multifamily — — — — 180,623 180,623 Residential mortgages — — — — 100,759 100,759 Consumer — — — — 33,744 33,744 Total $ 4,770 $ 2,234 $ 8,311 $ 15,315 $ 2,518,848 $ 2,534,163 Past due loans 30 days or greater totaled $18,211,000 and $15,315,000 at March 31, 2020 and December 31, 2019, respectively, of which $7,711,000 and $7,413,000 were on nonaccrual, respectively. At March 31, 2020, there were also $3,935,000 of loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2019, there were also $1,262,000 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. 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, and 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. Loans categorized as special mention have potential weaknesses that may, if not checked or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weaknesses do not yet justify a substandard classification. 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 will 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 credit losses on loans. Therefore, there is no balance to report as of March 31, 2020 and December 31, 2019. The following table presents term loans amortized cost by vintage and loan grade classification, and revolving loans amortized cost by loan grade classification. The loan grade classifications are based on the Bank’s internal loan grading methodology. Loan grade categories for doubtful and loss rated loans are not included on the table below as there are no loans with those grades at March 31, 2020. The vintage year represents the period the loan was originated or in the case of renewed loans, the period last renewed. The amortized balance is the loan balance less any deferred loan fees, or any purchase discounts, and plus any deferred loan costs or any loan purchase premiums. The loan categories are based on the loan segmentation in the Company's CECL reserve methodology based on loan purpose and type. Revolving Loans Term Loans Amortized Cost Basis by Originated Period Amortized 2015 and Cost 3/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 64,965 $ 54,854 $ 37,330 $ 18,556 $ 12,307 $ 11,754 $ 348,529 $ 548,295 Watch 4,115 6,482 8,093 6,756 3,861 6,461 48,902 84,670 Special Mention 2,370 7,724 5,419 4,993 5,763 537 2,905 29,711 Substandard 55 368 23 519 2,890 107 13,034 16,996 Substandard-Nonaccrual 600 435 943 - 282 53 295 2,608 Total 72,105 69,863 51,808 30,824 25,103 18,912 413,665 682,280 CRE - Owner Occupied: Pass 31,231 87,203 73,534 66,267 53,059 137,935 16,604 465,833 Watch 5,216 6,901 9,735 8,204 5,020 20,652 - 55,728 Special Mention 334 769 235 2,850 550 4,377 - 9,115 Substandard - 510 - 3,440 720 472 - 5,142 Substandard-Nonaccrual - 265 - - - 7,081 - 7,346 Total 36,781 95,648 83,504 80,761 59,349 170,517 16,604 543,164 CRE - Non-Owner Occupied: Pass 57,046 152,841 90,155 123,087 69,165 237,623 3,577 733,494 Watch - 3,379 1,460 521 7,074 6,657 - 19,091 Special Mention - 61 - - - 1,373 - 1,434 Substandard - - - - - 989 - 989 Substandard-Nonaccrual - - - - - - - - Total 57,046 156,281 91,615 123,608 76,239 246,642 3,577 755,008 Land and contruction: Pass 44,780 49,617 28,182 1,560 - 1,398 1,581 127,118 Watch 7,613 12,922 - - - - - 20,535 Special Mention 4,122 - - - - - - 4,122 Substandard 1,583 - - - - - - 1,583 Substandard-Nonaccrual - - - - - - - - Total 58,098 62,539 28,182 1,560 - 1,398 1,581 153,358 Home equity: Pass - - 824 - - - 109,085 109,909 Watch - - - 281 - - 5,750 6,031 Special Mention - - - - - - 100 100 Substandard - - - - - 146 1,456 1,602 Substandard-Nonaccrual - - - - - 126 - 126 Total - - 824 281 - 272 116,391 117,768 Multifamily: Pass 9,939 48,689 18,764 30,371 18,187 43,011 844 169,805 Watch - - - - 846 401 - 1,247 Special Mention - 1,225 - 598 - - - 1,823 Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 9,939 49,914 18,764 30,969 19,033 43,412 844 172,875 Residential mortgage: Pass 1,722 11,744 4,205 11,992 37,569 19,047 - 86,279 Watch - 439 1,688 - 1,912 1,846 - 5,885 Special Mention - 691 - 1,295 561 1,069 - 3,616 Substandard - 222 - - - 269 - 491 Substandard-Nonaccrual - - - - - - - - Total 1,722 13,096 5,893 13,287 40,042 22,231 - 96,271 Consumer: Pass 15 2,980 1,589 24 14 1,051 24,941 30,614 Watch - 37 - - 131 - 1,013 1,181 Special Mention - 84 - - - - - 84 Substandard - - - - - - - - Substandard-Nonaccrual - - 1,566 - - - - 1,566 Total 15 3,101 3,155 24 145 1,051 25,954 33,445 Total loans $ 235,706 $ 450,442 $ 283,745 $ 281,314 $ 219,911 $ 504,435 $ 578,616 $ 2,554,169 The following table presents the amortized cost basis of collateral-dependent loans by loan classification at March 31, 2020: Collateral Type Real Estate Business Property Assets Unsecured Total (Dollars in thousands) Commercial $ 1,600 $ 575 $ 1,252 $ 3,427 Real estate: - CRE - Owner Occupied 5,094 - - 5,094 CRE - Non-Owner Occupied - - - - Land and construction - - - - Home equity - - - - Multifamily - - - - Residential mortgages - - - - Consumer - - - - Total $ 6,694 $ 575 $ 1,252 $ 8,521 When management determines that foreclosures are probable, expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table details the allowance for loan losses and recorded investment in loans by loan classification as of December 31, 2019, as determined in accordance with ASC 310 prior to adoption of Topic 326: December 31, 2019 Allowance Unpaid for Loan Principal Recorded Losses Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 2,113 $ 2,113 $ — Real estate: CRE 5,094 5,094 — Home Equity 360 360 — Total with no related allowance recorded 7,567 7,567 — With an allowance recorded: Commercial 2,697 2,697 1,835 Total with an allowance recorded 2,697 2,697 1,835 Total $ 10,264 $ 10,264 $ 1,835 Classified loans were $39,603,000, or 0.97% of total assets, at March 31, 2020, compared to $25,200,000, or 0.81% of total assets, at March 31, 2019 and $32,579,000, or 0.79% of total assets, at December 31, 2019. The increase in classified assets for the first quarter of 2020, compared to the fourth quarter of 2019 was primarily due to two CRE secured and one commercial lending relationships that were move to classified assets during the first quarter of 2020. The book balance of troubled debt restructurings at March 31, 2020 was $1,015,000, which included $573,000 of nonaccrual loans and $442,000 of accruing loans. The book balance of troubled debt restructurings at December 31, 2019 was $1,039,000, which included $590,000 of nonaccrual loans and $449,000 of accruing loans. Approximately $12,000 and $20,000 of specific reserves were established with respect to these loans as of March 31, 2020 and December 31, 2019, respectively. The following table presents loans by class modified as troubled debt restructurings for the periods indicated: During the Three Months Ended March 31, 2020 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 3 $ 13 $ 13 Real estate: CRE - owner occupied — — — CRE - non-owner occupied — — — Land and construction — — — Home equity — — — Multifamily — — — Residential mortgages — — — Consumer — — — Total 3 $ 13 $ 13 There were no new loans modified as troubled debt restructurings during the three months ended March 31, 2019. During the three months ended March 31, 2020, 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 credit losses on loans. 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 months ended March 31, 2020 and 2019. 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. Following the passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) by Congress at the end of March, which included the $349 billion Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) to fund short-term loans for small businesses, on April 23, 2020, Congress passed the Paycheck Protection Program and Health Care Enhancement Act which included an additional $310 billion in funding for the PPP. The Company, which began taking loan applications from its small business clients immediately after the program began, received an overwhelming response. As of April 27, 2020, the Company had processed a total of 1,060 PPP loan applications with potential outstanding balances of $330 million. In addition, with the March 13, 2020 declaration of a National State of Emergency and passage of the CARES Act, on March 22, 2020, federal bank regulators announced guidance that offers temporary relief from troubled debt restructuring (“TDR”) accounting for loan payment deferrals for certain customers whose businesses are experiencing economic hardship due to Coronavirus. In response to these customer’s needs, we have made accommodations for initial payment deferrals of up to 90 days with the potential for up to an additional 90 days, if requested and depending on the circumstances. All applicable fees have been waived. As of April 27, 2020, we had received 319 requests for payment deferrals, with balances totaling approximately $170 million, or 7%, of our loan portfolio ranging across many different industries but primarily for dentists and physicians ($35 million) and commercial real estate ($54 million). Substantially all loans to borrowers requesting deferrals were supported by personal guarantees.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2020
Business Combinations
Business Combinations	6) Business Combinations On October 11, 2019, the Company completed its merger with Presidio for an aggregate transaction value of $185,598,000. Shareholders of Presidio received a fixed exchange ratio at closing of 2.47 shares of the Company’s common stock for each share of Presidio common stock. Upon closing of the transaction, the Company issued 15,684,064 shares of the Company’s common stock to Presidio shareholders and holders of restricted stock units for a total value of $178,171,000 based on the Company’s closing stock price of $11.36 on the closing date of October 11, 2019. In addition, the consideration for Presidio stock options exchanged for the Company’s stock options totaled $7,426,000 and cash-in-lieu of fractional shares totaled $1,000 on October 11, 2019. Presidio’s results of operations have been included in the Company’s results of operations beginning October 12, 2019. The following table summarizes the consideration paid for Presidio: (Dollars in thousands) Issuance of 15,684,064 shares of common stock to Presidio shareholders and holders of restricted stock (stock price = $11.36 on October 11, 2019) $ 178,171 Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options 7,426 Cash paid for fractional shares 1 Total consideration $ 185,598 The following table summarizes the estimated fair values of the Presidio assets acquired and liabilities assumed at the date of the merger. As As Recorded Fair Recorded by Value at Presidio Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 117,989 $ (1) (a) $ 117,988 Securities available-for-sale 44,647 422 (b) 45,069 Securities held-to-maturity 463 — 463 Loans 698,493 (12,529) (c) 685,964 Allowance for loan losses (7,463) 7,463 (d) — Premises and equipment, net 1,756 — 1,756 Other intangible assets — 11,147 (e) 11,147 Other assets, net 43,539 (1,378) (f) 42,161 Total assets acquired $ 899,424 $ 5,124 904,548 Liabilities assumed: Deposits $ 774,260 $ (1) (g) 774,259 Subordinated Debt 10,000 — (h) 10,000 Other borrowings 442 — 442 Other liabilities 17,916 (49) (i) 17,867 Total liabilities assumed $ 802,618 $ (50) 802,568 Net assets acquired 101,980 Purchase price 185,598 Goodwill recorded in the merger $ 83,618 Explanation of certain fair value related adjustments for the Presidio merger: (a) Represents cash paid for fractional shares in the transaction. (b) Represents the fair value adjustment on investment securities available-for-sale. (c) Represents the fair value adjustment to the net book value of loans includes an interest rate mark and credit mark adjustment. (d) Represents the elimination of Presidio’s allowance for loan losses. (e) Represents intangible assets recorded to reflect the fair value of core deposits and an above market lease. The core deposit asset was recorded as an identifiable intangible asset and is amortized on an accelerated basis over the estimated average life of the deposit base. The above market lease liability will be accreted on the straight line method over 60 months. (f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded. (g) Represents the fair value adjustment on time deposits, which was amortized as interest expense. (h) The Company acquired $10,000,000 of subordinated debt from the Presidio transaction. The Presidio subordinated debt was redeemed on December 19, 2019. (i) Represents reversal of over accrued accounts payable. Presidio’s results of operations have been included in the Company’s results of operations beginning October 12, 2019. The following table presents pro forma financial information as if the merger had occurred on January 1, 2018, which includes the pre‑acquisition period for Presidio. The historical unaudited pro forma financial information has been adjusted to reflect supportable items that are directly attributable to the acquisition and expected to have a continuing impact on consolidated results of operations, as such, one‑time acquisition costs are not included. The unaudited pro forma financial information is provided for informational purposes only. The unaudited pro forma financial information is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the acquisition been completed as of the dates indicated or that may be achieved in the future. The preparation of the unaudited pro forma combined consolidated financial statements and related adjustments required management to make certain assumptions and estimates. March 31, 2019 (Dollars in thousands, except per share amounts) Net interest income $ 41,177 Provision (credit) for loan losses (1,037) Noninterest income 2,779 Noninterest expense 23,961 Income before income taxes 21,032 Income tax expense 5,677 Net income $ 15,355 Net income per share - basic $ 0.26 Net income per share - diluted $ 0.26 The Company believes the merger provides the opportunity to combine independent business banking franchises with similar philosophies and cultures into a combined $4.1 billion business bank based in San Jose, California. The pooling of the banks’ resources and knowledge enhance the Company’s capabilities, operational efficiencies, and community outreach. The Company also believes the combined bank will be much better positioned to meet the needs of the Company’s customers, shareholders and the community. The acquisition 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 Purchased Credit Impaired Loans (“PCI”) as of December 31, 2019 and Pucharsed Credit Deteriorated (“PCD”) loans as of March 31, 2020. Goodwill of $83,618,000 arising from the Presidio merger is largely attributable to synergies and cost savings resulting from combining the operations of the companies. As these transactions were structured as tax-free exchanges, the goodwill will not be deductible for tax purposes. Management’s preliminary valuation of the tangible and intangible assets acquired and liabilities assumed from the Presidio merger, which are based on assumptions that are subject to change, and the resulting allocation of the consideration paid for the allocation is reflected in the table above. Prior to the end of the one-year measurement period for finalizing the consideration paid allocation, if information becomes available which would indicate adjustments are required to the allocation, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined. Loan valuations may be adjusted based on new information obtained by the Company in future periods that may reflect conditions or events that existed on the acquisition date. Deferred tax assets may be adjusted for purchase accounting adjustments on open areas such as loans or upon filing final “stub” period tax returns for October 11, 2019 for Presidio. The decrease in Presidio goodwill at March 31, 2020 from December 31, 2019 was due to the reversal of the $49,000 of over accrued accounts payable.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2020
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	7) Goodwill and Other Intangible Assets Goodwill At March 31, 2020, the carrying value of goodwill was $167,371,000, which included $13,044,000 of goodwill related to its acquisition of Bay View Funding, $32,619,000 from its acquisition of Focus Business Bank (“Bank”), $13,819,000 from its acquisition of Tri-Valley, $24,271,000 from its acquisition of United American and $83,618,000 from Presidio. 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. The Company completed its annual goodwill impairment analysis as of November 30, 2019 with the assistance of an independent valuation firm. The Company completed an impairment analysis of goodwill and core deposit intangible assets as of March 31, 2020 and has determined that there was no impairment. Other Intangible Assets Other intangible assets acquired in the merger with Presidio in October 2019 included a core deposit intangible asset of $11,247,000, amortized on an accelerated method over its estimated useful life of 10 years, and an above market value lease liability of ($100,000), amortized over its estimated useful life of 60 months. Accumulated amortization of the core deposit intangible and above market lease was $870,000 and $524,000 at Mach 31, 2020 and December 31, 2019, respectively. 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 $2,019,000 and $1,778,000 at Mach 31, 2020 and December 31, 2019, 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 $537,000 and $480,000 at Mach 31, 2020 and December 31, 2019, 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 $3,683,000 and $3,504,000 at Mach 31, 2020 and December 31, 2019, 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 $1,028,000 and $981,000 at Mach 31, 2020 and December 31, 2019, respectively. Estimated amortization expense for the remainder of 2020, the next five years, and thereafter is as follows: United United Bay View Funding Presidio Presidio American American Tri-Valley Tri-Valley Focus Customer & Core Above Core Below Core Below Core Brokered Total Deposit Market Deposit Market Deposit Market Deposit Relationship Amortization Year Intangible Lease Intangible Lease Intangible Lease Intangible Intangible Expense (Dollars in thousands) 2020 $ 1,369 (14) $ 499 $ 171 $ 156 $ 13 $ 538 $ 142 2,874 2021 1,447 (20) 602 — 184 18 596 190 3,017 2022 1,225 (20) 553 — 167 18 502 190 2,635 2023 1,118 (20) 521 — 158 18 420 190 2,405 2024 1,026 (14) 499 — 152 18 346 159 2,186 2025 970 — 478 — 145 18 200 — 1,811 Thereafter 3,211 — 1,042 — 306 70 — — 4,629 $ 10,366 $ (88) $ 4,194 $ 171 $ 1,268 $ 173 $ 2,602 $ 871 $ 19,557 Impairment testing of the intangible assets is performed at the individual asset level. Impairment exists if the carrying amount of the asset is not recoverable and exceeds its fair value at the date of the impairment test. For intangible assets, estimates of expected future cash flows (cash inflows less cash outflows) that are directly associated with an intangible asset are used to determine the fair value of that asset. Management makes certain estimates and assumptions in determining the expected future cash flows from core deposit and customer relationship intangibles including account attrition, expected lives, discount rates, interest rates, servicing costs and other factors. Significant changes in these estimates and assumptions could adversely impact the valuation of these intangible assets. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is then amortized over the remaining useful life of the asset. Based on its assessment, management concluded that there was no impairment of intangible assets at March 31, 2020 and December 31, 2019.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
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 $27,747,000, and $24,302,000, at March 31, 2020 and December 31, 2019, respectively. After consideration of the matters in the preceding paragraph, the Company determined that it is more likely than not that the net deferred tax assets at March 31, 2020 and December 31, 2019 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: March 31, December 31, 2020 2019 (Dollars in thousands) Low income housing investments $ 5,878 $ 6,126 Future commitments $ 625 $ 625 The Company expects $28,000 of the future commitments to be paid in 2020, and $597,000 in 2021 through 2023. For tax purposes, the Company had low income housing tax credits of $210,000 and $106,000 for the three months ended March 31, 2020 and March 31, 2019, respectively, and low income housing investment expense of $211,000 and $109,000, respectively. The Company recognized low income housing investment expense as a component of income tax expense.

Benefit Plans

Benefit Plans	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 123 $ 55 Interest cost 231 264 Amortization of net actuarial loss 85 46 Net periodic benefit cost $ 439 $ 365 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: March 31, December 31, 2020 2019 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 8,198 $ 6,903 Interest cost 62 278 Actuarial loss (gain) — 1,017 Projected benefit obligation at end of period $ 8,260 $ 8,198 March 31, December 31, 2020 2019 (Dollars in thousands) Net actuarial loss $ 3,813 $ 3,776 Prior transition obligation 1,037 1,059 Accumulated other comprehensive loss $ 4,850 $ 4,835 Three Months Ended March 31, 2020 2019 (Dollars in thousands) Amortization of prior transition obligation $ (15) $ (25) Interest cost 62 70 Net periodic benefit cost $ 47 $ 45

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 Available-for-sale securities: Agency mortgage-backed securities $ 251,836 — $ 251,836 — U.S. Treasury 121,734 121,734 — — I/O strip receivables 458 — 458 — Assets at December 31, 2019 Available-for-sale securities: Agency mortgage-backed securities $ 284,361 — $ 284,361 — U.S. Treasury 120,464 120,464 — — I/O strip receivables 503 — 503 — 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 collateral dependent loans individually evaluated 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. At March 31, 2020 and December 31, 2019, there were no foreclosed assets on the balance sheet. The carrying amounts and estimated fair values of financial instruments at March 31, 2020 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 $ 443,397 $ 443,397 $ — $ — $ 443,397 Securities available-for-sale 373,570 121,734 251,836 — 373,570 Securities held-to-maturity 348,044 — 356,153 — 356,153 Loans (including loans held-for-sale), net 2,511,623 — 2,415 2,494,661 2,497,076 FHLB stock, FRB stock, and other investments 33,339 — — — N/A Accrued interest receivable 10,231 616 1,997 7,618 10,231 I/O strips receivables 458 — 458 — 458 Liabilities: Time deposits $ 150,238 $ — $ 150,728 $ — $ 150,728 Other deposits 3,216,401 — 3,216,401 — 3,216,401 Subordinated debt 39,600 — 38,100 — 38,100 Accrued interest payable 1,198 — 1,198 — 1,198 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2019: ` 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 $ 457,370 $ 457,370 $ — $ — $ 457,370 Securities available-for-sale 404,825 120,464 284,361 — 404,825 Securities held-to-maturity 366,560 — 368,107 — 368,107 Loans (including loans held-for-sale), net 2,511,611 — 1,052 2,512,277 2,513,329 FHLB stock, FRB stock, and other investments 29,842 — — — N/A Accrued interest receivable 10,915 446 2,218 8,251 10,915 I/O strips receivables 503 — 503 — 503 Liabilities: Time deposits $ 168,034 $ — $ 158,704 $ — $ 158,704 Other deposits 3,246,734 — 3,246,734 — 3,246,734 Subordinated debt 39,554 — 40,404 — 40,404 Accrued interest payable 707 — 707 — 707

Equity Plan

Equity Plan	3 Months Ended
	Mar. 31, 2020
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 three months ended March 31, 2020, the Company granted 25,000 shares of nonqualified stock options and no shares of restricted stock. There were 803,739 shares available for the issuance of equity awards under the 2013 Plan as of March 31, 2020. The Presidio equity plans were assumed by the Company and the outstanding options issued under the Presidio equity plans were converted into the right to receive the Company’s shares at the exercise price pursuant to the formula defined in the merger agreement. Consideration for the assumed Presidio stock options exchanged for 1,176,757 shares of the Company’s stock options totaled $7,426,000. 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, 2020 2,712,846 $ 8.80 Granted 25,000 $ 11.58 Exercised (200,063) $ 5.53 Forfeited or expired (32,260) $ 13.80 Outstanding at March 31, 2020 2,505,523 $ 9.03 5.44 $ 3,087,857 Vested or expected to vest 2,355,192 5.44 $ 2,902,585 Exercisable at March 31, 2020 2,047,781 4.75 $ 3,087,857 Information related to the equity plans for the periods indicated: Three Months Ended March 31, 2020 2019 Intrinsic value of options exercised $ 1,346,186 $ 197,994 Cash received from option exercise $ 1,105,991 $ 268,691 Tax benefit realized from option exercises $ 14,471 $ 26,578 Weighted average fair value of options granted $ 1.59 $ 3.24 As of March 31, 2020, there was $987,000 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 2.56 years. The fair value of each option grant is estimated on the date of grant using the Black Scholes option pricing model that uses the assumptions noted in the following table, including the weighted average assumptions for the option grants for the periods indicated: Three Months Ended March 31, 2020 2019 Expected life in months(1) 72 N/A Volatility(1) 24 % N/A Weighted average risk-free interest rate(2) 1.52 % N/A Expected dividends(3) 4.49 % N/A (1) The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option. (2) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted. (3) Each grant’s dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company’s common stock as of the grant date Restricted stock activity under the equity plans is as follows: Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2020 239,453 $ 11.23 Granted — $ — Vested — $ — Forfeited or expired — $ — Nonvested shares at March 31, 2020 239,453 $ 11.23 As of March 31, 2020, there was $1,993,000 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 1.95 years.

Subordinated Debt

Subordinated Debt	3 Months Ended
	Mar. 31, 2020
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 1st and December 1st of each year through June 1, 2022 and quarterly thereafter on March 1st, June 1st, September 1st and December 1st 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. Unamortized debt issuance cost totaled $400,000 at March 31, 2020. It is understood that after December 31, 2021, the administrator in the United Kingdom with authority over the agency that currently publishes LIBOR (commonly known as the Intercontinental Exchange “ICE”), will no longer support that published index as a generally representative rate. Due to this, standardized contract language addressing the replacement of LIBOR has been published by the Alternative Rate Reference Committee (commonly known as “ARRC”) convened by, among others, the Federal Reserve Board. It is also understood that ARRC generally supports using the Secured Overnight Financing Rate (“SOFR”) as a replacement index (with an adjustment mechanism), although one version of the ARRC’s proposed language does not require implementation of SOFR immediately. With respect to new financings tied to LIBOR going forward, it is expected to consider the implementation of the ARRC’s proposed language (with variations as appropriate) into the documentation thereof. With respect to existing financings tied to LIBOR, the existing terms of the documentation thereof will be the primary driver of how all issues related to LIBOR are dealt with, which necessarily means each will be evaluated and responded to on a case-by-case basis as necessary. Efforts are underway to coordinate with the counter-parties under such financings to address the issues, subject to the terms of the existing documentation and any mutually agreeable amendments thereto. The Company acquired $10,000,000 of subordinated debt from the Presidio transaction with an interest rate of 8%, which was redeemed on December 19, 2019. As a result of the redemption of the Presidio subordinated debt, the Company paid a pre-payment penalty of $300,000 during the fourth quarter of 2019.

Capital Requirements

Capital Requirements	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020, 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 HBC’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at March 31, 2020. As permitted by the interim final rule issued on March 27, 2020 by our federal regulatory agency, we elected the option to delay the estimated impact of the adoption of the CECL Standard in our regulatory capital for two years. This two-year delay is in addition to the three-year transition period the agency had already made available. The adoption will delay the effects of CECL on our regulatory capital for the next two years, after which the effects will be phased-in over a three-year period from January 1, 2022 through December 31, 2024. Under the interim final rule, the amount of adjustments to regulatory capital deferred until the phase-in period include both the initial impact of adoption of the CECL Standard at January 1, 2020 and 25% of subsequent changes in our allowance for credit losses during each quarter of the two-year period ending December 31, 2021. Quantitative measures established by regulation to help ensure capital adequacy require the Company and HBC to maintain minimum amounts and ratios (set forth in the tables below) of total, Tier 1 capital, and common equity Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Management believes that, as of March 31, 2020 and December 31, 2019, the Company and HBC met all capital adequacy guidelines to which they were subject. The Company’s consolidated capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of March 31, 2020 and December 31, 2019. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of March 31, 2020 Total Capital $ 468,876 14.9 % $ 331,450 10.5 % (to risk-weighted assets) Tier 1 Capital $ 389,796 12.3 % $ 268,317 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 389,796 12.3 % $ 220,967 7.0 % (to risk-weighted assets) Tier 1 Capital $ 389,796 10.1 % $ 153,703 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, 2019 Total Capital $ 457,158 14.6 % $ 329,306 10.5 % (to risk-weighted assets) Tier 1 Capital $ 393,432 12.5 % $ 266,581 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 393,432 12.5 % $ 219,538 7.0 % (to risk-weighted assets) Tier 1 Capital $ 393,432 9.7 % $ 161,677 4.0 % (to average assets) (2) Includes 2.5% capital conservation buffer, effective January 1, 2019, except the Tier 1 Capital to average assets ratio. HBC’s actual capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of March 31, 2020, and December 31, 2019. 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 March 31, 2020 Total Capital $ 444,676 14.1 % $ 315,256 10.0 % $ 331,018 10.5 % (to risk-weighted assets) Tier 1 Capital $ 405,247 12.9 % $ 252,204 8.0 % $ 267,967 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 405,247 12.9 % $ 204,916 6.5 % $ 220,679 7.0 % (to risk-weighted assets) Tier 1 Capital $ 405,247 10.6 % $ 191,927 5.0 % $ 153,542 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, 2019 Total Capital $ 435,757 13.9 % $ 313,485 10.0 % $ 329,159 10.5 % (to risk-weighted assets) Tier 1 Capital $ 411,585 13.1 % $ 250,788 8.0 % $ 266,462 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 411,585 13.1 % $ 203,765 6.5 % $ 219,439 7.0 % (to risk-weighted assets) Tier 1 Capital $ 411,585 10.2 % $ 202,013 5.0 % $ 161,611 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. The Subordinated Debt, net of unamortized issuance costs, totaled $39,600,000 at March 31, 2020, 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 March 31, 2020, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $45,996,000. Similar restrictions applied to the amount and sum of loan advances and other transfers of funds from HBC to the parent company. During the first quarter of 2020, HBC distributed to HCC dividends of $8,000,000.

Loss Contingencies

Loss Contingencies	3 Months Ended
	Mar. 31, 2020
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	3 Months Ended
	Mar. 31, 2020
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 Company currently accounts for sales of foreclosed assets in accordance with Topic 360-20. In most cases the Company will seek to engage a real estate agent for the sale of foreclosed assets immediately upon foreclosure. However, in some cases, where there is clear demand for the property in question, the Company may elect to allow for a marketing period on no more than six months to attempt a direct sale of the property. We generally recognize the sale, and any associated gain or loss, of a real estate property when control of the property transfers. Any gains or losses from the sale are recorded to noninterest income/expense. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 969 $ 1,161 Gain on the disposition of foreclosed assets 791 — Total noninterest income in-scope of Topic 606 1,760 1,161 Noninterest Income Out-of-scope of Topic 606 1,433 1,307 Total noninterest income $ 3,193 $ 2,468

Noninterest Expense

Noninterest Expense	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 (Dollars in thousands) Salaries and employee benefits $ 14,203 $ 10,770 Occupancy and equipment 1,772 1,506 Professional fees 1,435 818 Data processing 976 679 Software subscriptions 889 589 Amortization of intangible assets 858 553 Insurance expense 518 436 Other 5,123 2,567 Total noninterest expense $ 25,774 $ 17,918 The following table presents the merger-related costs by category for the periods indicated: For the Three Months Ended March 31, March 31, 2020 2019 (Dollars in thousands) Salaries and employee benefits $ 356 $ — Other 2,068 — Total merger-related costs $ 2,424 $ —

Leases

Leases	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020, operating lease ROU assets, included in other assets, and lease liabilities, included in other liabilities, totaled $38,098,000. The following table presents the quantitative information for the Company’s leases: March 31, 2020 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,769 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,190 Operating Lease - ROU assets $ 38,098 Operating Lease - Liabilities $ 38,098 Weighted Average Lease Term - Operating Leases 8.64 years Weighted Average Discount Rate - Operating Leases The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities: (Dollars in thousands) 2020 $ 4,420 2021 5,029 2022 5,448 2023 4,812 2024 4,575 Thereafter 22,663 Total undiscounted cash flows 46,947 Discount on cash flows (8,849) Total lease liability $ 38,098 The merger with Presidio resulted in the Company operating overlapping branch locations in the cities of Walnut Creek and San Mateo, California. Management has approved the consolidation of these branches in 2020 by vacating the HBC leased locations prior to the lease termination date, and moving the operations to the Presidio branch locations. The consolidation of these two branches into the Presidio locations resulted in the impairment of both leases at December 31, 2019. The lease impairment and write-off of fixed assets and tenant improvements totaled $434,000 for the Walnut Creek location, and $625,000 for the San Mateo location during the fourth quarter of 2019. In June of 2019, the Company entered into a lease agreement for 54,910 square feet of office space in San Jose, California, commencing on February 1, 2020. The Company was able to complete the move of its Bay View Funding office during the first quarter of 2020, and we had intended to move the main office of the Company during the second quarter of 2020 to this new location. However, due to delays and restrictions created by California’s and Santa Clara County’s Shelter-in-Place declarations because of the Coronavirus, we must delay the move to later in the year. The financial effects of this delay cannot be determined at this time.

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2020
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 credit losses on loans is allocated based on the segment’s allowance for loan loss determination which considers the effects of charge-offs. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis and allocated for segment purposes. The Factoring segment includes only factoring originated by Bay View Funding. Three Months Ended March 31, 2020 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 38,065 $ 2,877 $ 40,942 Intersegment interest allocations 284 (284) — Total interest expense 2,362 — 2,362 Net interest income 35,987 2,593 38,580 Provision for credit losses on loans 12,874 396 13,270 Net interest income after provision 23,113 2,197 25,310 Noninterest income 3,023 170 3,193 Noninterest expense 24,183 1,591 25,774 Intersegment expense allocations 129 (129) — Income before income taxes 2,082 647 2,729 Income tax expense 677 191 868 Net income $ 1,405 $ 456 $ 1,861 Total assets $ 4,009,344 $ 68,818 $ 4,078,162 Loans, net of deferred fees $ 2,499,837 $ 54,074 $ 2,553,911 Goodwill $ 154,327 $ 13,044 $ 167,371 (1) Includes the holding company’s results of operations Three Months Ended March 31, 2019 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 30,496 2,953 $ 33,449 Intersegment interest allocations 314 (314) — Total interest expense 2,407 — 2,407 Net interest income 28,403 2,639 31,042 Provision for loan losses (892) (169) (1,061) Net interest income after provision 29,295 2,808 32,103 Noninterest income 2,232 236 2,468 Noninterest expense 16,201 1,717 17,918 Intersegment expense allocations 121 (121) — Income before income taxes 15,447 1,206 16,653 Income tax expense 4,151 356 4,507 Net income $ 11,296 $ 850 $ 12,146 Total assets $ 3,053,116 $ 62,761 $ 3,115,877 Loans, net of deferred fees $ 1,800,064 $ 48,254 $ 1,848,318 Goodwill $ 70,709 $ 13,044 $ 83,753 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events
Subsequent Events	19) Subsequent Events On April 23, 2020, the Company announced that its Board of Directors declared a $0.13 per share quarterly cash dividend to holders of common stock. The dividend will be payable on May 21, 2020, to shareholders of record at close of business day on May 7, 2020.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Basis of Presentation
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements of Heritage Commerce Corp (the “Company” or “HCC”) and its wholly owned subsidiary, Heritage Bank of Commerce (“HBC”), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company’s Form 10-K for the year ended December 31, 2019. HBC is a commercial bank serving customers primarily located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. CSNK Working Capital Finance Corp. a California corporation, dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC, and provides business-essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10% of revenue for HBC or the Company. The Company reports its results for two segments: banking and factoring. The Company’s management uses segment results in its operating and strategic planning. In management’s opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates. The results for the three months ended March 31, 2020 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2020.
Capital and Liquidity	Capital and Liquidity While the Company believes that it has sufficient capital to withstand an extended economic recession brought about by COVID-19, its reported and regulatory capital ratios could be adversely impacted by further credit losses. The Company relies on cash on hand as well as dividends from its subsidiary bank to service its debt. If the Company’s capital deteriorates such that its subsidiary bank is unable to pay dividends to it for an extended period of time, the Company may not be able to service its debt. The Company maintains access to multiple sources of liquidity. Wholesale funding markets have remained open to us, but rates for short term funding have recently been volatile. If funding costs are elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Company’s deposit customers to withdraw their funds, the Company might become more reliant on volatile or more expensive sources of funding.
Asset Valuation	Asset Valuation While certain valuation assumptions and judgments will change to account for pandemic-related circumstances such as widening credit spreads, the Company does not anticipate significant changes in methodology used to determine the fair value of assets measured in accordance with GAAP. The extent to which the COVID-19 pandemic will impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. Those developments and factors include the duration and spread of the pandemic, its severity, the actions to contain the pandemic or address its impact, and how quickly and to what extent normal economic and operating conditions can resume. We do not yet know the full extent of the impact. However, the effects could have a material adverse impact on our business, asset valuations, financial condition and results of operations. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, investments, loans, or deferred tax assets.
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, United American Bank (“United American”) on May 4, 2018, and Presidio Bank (“Presidio”) on October 11, 2019, 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, a below market value lease intangible asset, arising from the United American, Tri-Valley and an above the market lease from the Presidio acquisition. 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. The above market value lease intangible assets are being amortized on the straight line method over five years for Presidio.
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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in prior GAAP with a methodology that reflects expected life-of-instrument credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As Current Expected Credit Losses (“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 Company adopted CECL on January 1, 2020, using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods after January 1, 2020, are presented under Topic 326, while prior prior period amounts continue to be reported in accordance with previously applicable GAAP. The following table shows the impact of adopting CECL on January 1, 2020: As Reported Pre- Impact of Under Topic 326 Topic 326 Topic 326 Adoption Adoption (Dollars in thousands) Assets: Allowance for credit losses on debt securities Held to maturity municipal securities $ 58 $ - $ 58 Loans Commercial 6,790 10,453 (3,663) CRE - owner occupied 6,994 3,825 3,169 CRE - non-owner occupied 11,672 3,760 7,912 Land and construction 1,458 2,621 (1,163) Home equity 1,321 2,244 (923) Multifamily 1,253 57 1,196 Residential mortgage 678 243 435 Consumer and other 1,689 82 1,607 Allowance for credit losses on loans $ 31,855 $ 23,285 $ 8,570 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 679 $ 886 $ (207) While the CARES Act allows banks to delay implementation, Securities and Exchange Commission (“SEC”) informal guidance indicated that a delay in implementation would result in adoption later in 2020 and would need to be retroactively recorded as of January 1, 2020. For CECL modeling purposes, the Company uses forecast data for the state of California including Gross Domestic Product (“GDP”) and unemployment projections provided by the California Economic Forecast (“CEF”, www.CaliforniaForecast.com). At January 1, 2020, the forecast for California GDP for 2020 was an annual increase in the low single digits and the forecasted California unemployment rate for 2020 was in the mid single digits. In March 2020, the CEF forecast was revised for GDP in the negative low single digits and peak unemployment in the low double digits. As of the implementation date of January 1, 2020, the Company recognized an increase of $8.6 million to its allowance for credit losses for loans. The majority of this increase is related to loan portfolios acquired in our recent acquisitions that under the previous methodology were covered by the purchase discount on acquired loans. The cumulative-effect adjustment as a result of the adoption of this guidance was recorded, net of tax of $2.4 million, as a $6.1 million reduction to retained earnings effective January 1, 2020. As of the implementation date, there was a $58,000 allowance for losses recorded on the Company’s held-to-maturity municipal investment securities portfolio. For the first quarter of 2020, there was a reduction of $3,000 to the allowance for losses on the Company’s held-to-maturity municipal investment securities portfolio. This reduction was the result of a reduction in municipal securities amortized balances resulting from regular payments. The allowance for losses on held-to-maturity securities is based on historic loss rates of municipal securities by bond ratings and change in bond ratings of the municipal securities held by the Company will impact the reserve. The bond ratings for the Company’s municipal investment securities at March 31, 2020 were consistent with the ratings at January 1, 2020. Any ratings downgrades on these securities will impact the allowance for losses on these securities. In the normal course of business, the Company makes commitments to extend credit to its customers as long as there are no violations of any conditions established in contractual arrangements. These commitments are obligations that represent a potential credit risk to the Company, yet are not reflected in any form within the Company’s consolidated balance sheets. As of the implementation date, there was a reduction of $207,000 to allowance for losses recorded for the Company’s off-balance sheet credit exposures . The reduction in reserves for off-balance sheet credit exposures at implementation was primarily driven by applying a lower estimated CECL loss factors for unfunded commercial loan and construction loan commitments. For the first quarter of 2020, there was an increase of $305,000 to the allowance for losses for the Company’s off-balance sheet credit exposures. The increase in the allowance for losses for off-balance sheet credit exposures in the first quarter 2020 was driven by increased loss factors in the CECL model for all loan segments with off-balance sheet exposures which resulted from deterioration in the economic forecast assumptions used in the CECL model. In January 2017, the FASB issued 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. The amendments of the update became effective for the Company on January 1, 2020.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2020
Basis of Presentation
Schedule of impact of adopting CECL	As Reported Pre- Impact of Under Topic 326 Topic 326 Topic 326 Adoption Adoption (Dollars in thousands) Assets: Allowance for credit losses on debt securities Held to maturity municipal securities $ 58 $ - $ 58 Loans Commercial 6,790 10,453 (3,663) CRE - owner occupied 6,994 3,825 3,169 CRE - non-owner occupied 11,672 3,760 7,912 Land and construction 1,458 2,621 (1,163) Home equity 1,321 2,244 (923) Multifamily 1,253 57 1,196 Residential mortgage 678 243 435 Consumer and other 1,689 82 1,607 Allowance for credit losses on loans $ 31,855 $ 23,285 $ 8,570 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 679 $ 886 $ (207)

Shareholders' Equity and Earn_2

Shareholders' Equity and Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Shareholders' Equity and Earnings Per Share.
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Three Months Ended March 31, 2020 2019 (Dollars in thousands, except per share amounts) Net income $ 1,861 $ 12,146 Weighted average common shares outstanding for basic earnings per common share 59,286,927 43,108,208 Dilutive potential common shares 907,098 562,133 Shares used in computing diluted earnings per common share 60,194,025 43,670,341 Basic earnings per share $ 0.03 $ 0.28 Diluted earnings per share $ 0.03 $ 0.28

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (“AOCI”) (Tables)	3 Months Ended
	Mar. 31, 2020
Accumulated Other Comprehensive Income (“AOCI”)
Schedule of changes in AOCI by component	Three Months Ended March 31, 2020 and 2019 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(1) Total (Dollars in thousands) Beginning balance January 1, 2020, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) Other comprehensive income (loss) before reclassification, net of taxes 5,096 — 4 5,100 Amounts reclassified from other comprehensive income (loss), net of taxes (71) (9) 49 (31) Net current period other comprehensive income (loss), net of taxes 5,025 (9) 53 5,069 Ending balance March 31, 2020, net of taxes $ 6,627 $ 289 $ (11,625) $ (4,709) Beginning balance January 1, 2019, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Other comprehensive (loss) before reclassification, net of taxes 3,404 — (7) 3,397 Amounts reclassified from other comprehensive income (loss), net of taxes — (18) 15 (3) Net current period other comprehensive income (loss), net of taxes 3,404 (18) 8 3,394 Ending balance March 31, 2019, net of taxes $ (1,603) $ 326 $ (7,710) $ (8,987) (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 March 31, Affected Line Item Where Details About AOCI Components 2020 2019 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 100 $ — Gain on sales of securities (29) — Income tax expense 71 — Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 13 26 Interest income on taxable securities (4) (8) Income tax expense 9 18 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 15 25 Actuarial losses (85) (46) (70) (21) Other noninterest expense 21 6 Income tax benefit (49) (15) Net of tax Total reclassification for the period $ 31 $ 3 (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)	3 Months Ended
	Mar. 31, 2020
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair March 31, 2020 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 244,968 $ 6,868 $ — $ — $ 251,836 U.S. Treasury 119,192 2,542 — — 121,734 Total $ 364,160 $ 9,410 $ — $ — $ 373,570 Gross Gross Estimated Allowance Amortized Unrealized Unrealized Fair for Credit March 31, 2020 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 270,211 $ 6,746 $ (1) $ 276,956 $ — Municipals - exempt from Federal tax 77,888 1,309 — 79,197 (55) Total $ 348,099 $ 8,055 $ (1) $ 356,153 $ (55) Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 283,598 $ 934 $ (171) $ 284,361 U.S. Treasury 118,939 1,525 — 120,464 Total $ 402,537 $ 2,459 $ (171) $ 404,825 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 285,344 $ 1,206 $ (968) $ 285,582 Municipals - exempt from Federal tax 81,216 1,313 (4) 82,525 Total $ 366,560 $ 2,519 $ (972) $ 368,107
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2020 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ — $ — $ 1,183 $ (1) $ 1,183 $ (1) Total $ — $ — $ 1,183 $ (1) $ 1,183 $ (1) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Total $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Securities held-to-maturity: Agency mortgage-backed securities $ 50,060 $ (178) $ 88,128 $ (790) $ 138,188 $ (968) Municipals - exempt from Federal tax 1,556 (4) — — 1,556 (4) Total $ 51,616 $ (182) $ 88,128 $ (790) $ 139,744 $ (972)
Schedule of proceeds from sales of securities and the resulting gains and losses	Three Months Ended March 31, 2020 2019 (Dollars in thousands) Proceeds $ 26,513 $ — Gross gains 100 — Gross losses — —
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 $ 74,668 75,759 Due after one through five years 44,524 45,975 Agency mortgage-backed securities 244,968 251,836 Total $ 364,160 $ 373,570 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 1,446 $ 1,451 Due after one through five years 6,410 6,574 Due after five through ten years 36,178 36,812 Due after ten years 33,854 34,360 Agency mortgage-backed securities 270,211 276,956 Total $ 348,099 $ 356,153
Schedule of rollforward by major security type of the allowance for credit losses on debt securities held-to-maturity	Municipals (Dollars in thousands) Beginning balance January 1, 2020 $ - Impact of adopting Topic 326 58 Provision (credit) for credit loss (3) Ending balance March 31, 2020 $ 55

Allowance for Credit Losses o_2

Allowance for Credit Losses on Loans (Tables)	3 Months Ended
	Mar. 31, 2020
Allowance for Credit Losses on Loans
Schedule of loans	March 31, December 31, 2020 2019 (Dollars in thousands) Loans held-for-investment: Commercial $ 682,280 $ 603,345 Real estate: CRE - owner occupied 543,164 548,907 CRE - non-owner occupied 755,008 767,821 Land and construction 153,358 147,189 Home equity 117,768 151,775 Multifamily 172,875 180,623 Residential mortgages 96,271 100,759 Consumer and other 33,445 33,744 Loans 2,554,169 2,534,163 Deferred loan fees, net (258) (319) Loans, net of deferred fees 2,553,911 2,533,844 Allowance for credit losses on loans (1) (44,703) (23,285) Loans, net $ 2,509,208 $ 2,510,559 (1) Allowance for credit losses on loans at March 31, 2020, Allowance for loan losses for the prior periods
Schedule of changes in allowance for loan (credit) losses	CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgage and Other Total (Dollars in thousands) Beginning of period balance $ 10,453 $ 3,825 $ 3,760 $ 2,621 $ 2,244 $ 57 $ 243 $ 82 $ 23,285 Adoption of Topic 326 (3,663) 3,169 7,912 (1,163) (923) 1,196 435 1,607 8,570 Balance at adoption on January 1, 2020 6,790 6,994 11,672 1,458 1,321 1,253 678 1,689 31,855 Charge-offs (670) — — — — — — (3) (673) Recoveries 209 — — 19 23 — — — 251 Net (charge-offs) recoveries (461) — — 19 23 — — (3) (422) Provision for credit losses on loans 6,472 743 3,973 1,126 402 369 30 155 13,270 End of period balance $ 12,801 $ 7,737 $ 15,645 $ 2,603 $ 1,746 $ 1,622 $ 708 $ 1,841 $ 44,703 Changes in the allowance for loan losses were as follows for the three months ended March 31, 2019: Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Charge-offs (226) — — (226) Recoveries 715 42 — 757 Net recoveries 489 42 — 531 Provision (credit) for loan losses (1,993) 958 (26) (1,061) End of period balance $ 15,557 $ 11,671 $ 90 $ 27,318
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method	December 31, 2019 Allowance Unpaid for Loan Principal Recorded Losses Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 2,113 $ 2,113 $ — Real estate: CRE 5,094 5,094 — Home Equity 360 360 — Total with no related allowance recorded 7,567 7,567 — With an allowance recorded: Commercial 2,697 2,697 1,835 Total with an allowance recorded 2,697 2,697 1,835 Total $ 10,264 $ 10,264 $ 1,835
Schedule of loans held-for-investment individually evaluated for impairment by class of loans	December 31, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,835 $ — $ — $ 1,835 Collectively evaluated for impairment 8,618 12,750 82 21,450 Total allowance balance $ 10,453 $ 12,750 $ 82 $ 23,285 Loans: Individually evaluated for impairment $ 4,810 $ 5,454 $ — $ 10,264 Collectively evaluated for impairment 626,737 1,877,280 19,882 2,523,899 Total loan balance $ 631,547 $ 1,882,734 $ 19,882 $ 2,534,163
Schedule of nonperforming loans by class	Restructured Nonaccrual Nonaccrual and Loans with no with over 90 Days Allowance for Allowance for Past Due Credit Credit and Still Losses Losses Accruing Total (Dollars in thousands) Commercial $ 781 $ 1,827 $ 442 $ 3,050 Real estate: CRE - Owner Occupied 7,346 — — 7,346 CRE - Non-Owner Occupied — — — — Land and construction — — — — Home equity 126 — — 126 Multifamily — — — — Residential mortgages — — — — Consumer — 1,566 — 1,566 Total $ 8,253 $ 3,393 $ 442 $ 12,088 Restructured and Loans over 90 Days Past Due and Still Nonaccrual Accruing Total (Dollars in thousands) Commercial $ 3,444 $ 1,153 $ 4,597 Real estate: CRE 5,094 — 5,094 Home equity 137 — 137 Total $ 8,675 $ 1,153 $ 9,828
Schedule of aging of past due loans by class of loans	March 31, 2020 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 7,256 $ 1,130 $ 2,158 $ 10,544 $ 671,736 $ 682,280 Real estate: CRE - Owner Occupied 693 1,184 5,094 6,971 536,193 543,164 CRE - Non-Owner Occupied — — — — 755,008 755,008 Land and construction — — — — 153,358 153,358 Home equity 571 125 — 696 117,072 117,768 Multifamily — — — — 172,875 172,875 Residential mortgages — — — — 96,271 96,271 Consumer — — — — 33,445 33,445 Total $ 8,520 $ 2,439 $ 7,252 $ 18,211 $ 2,535,958 $ 2,554,169 December 31, 2019 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 4,770 $ 2,097 $ 3,217 $ 10,084 $ 593,261 $ 603,345 Real estate: CRE - Owner Occupied — — 5,094 5,094 543,813 548,907 CRE - Non-Owner Occupied — — — — 767,821 767,821 Land and construction — — — — 147,189 147,189 Home equity — 137 — 137 151,638 151,775 Multifamily — — — — 180,623 180,623 Residential mortgages — — — — 100,759 100,759 Consumer — — — — 33,744 33,744 Total $ 4,770 $ 2,234 $ 8,311 $ 15,315 $ 2,518,848 $ 2,534,163
Schedule of amortized cost basis of collateral-dependant loans	Collateral Type Real Estate Business Property Assets Unsecured Total (Dollars in thousands) Commercial $ 1,600 $ 575 $ 1,252 $ 3,427 Real estate: - CRE - Owner Occupied 5,094 - - 5,094 CRE - Non-Owner Occupied - - - - Land and construction - - - - Home equity - - - - Multifamily - - - - Residential mortgages - - - - Consumer - - - - Total $ 6,694 $ 575 $ 1,252 $ 8,521
Summary of loan portfolio by loan type and credit quality classification	Revolving Loans Term Loans Amortized Cost Basis by Originated Period Amortized 2015 and Cost 3/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 64,965 $ 54,854 $ 37,330 $ 18,556 $ 12,307 $ 11,754 $ 348,529 $ 548,295 Watch 4,115 6,482 8,093 6,756 3,861 6,461 48,902 84,670 Special Mention 2,370 7,724 5,419 4,993 5,763 537 2,905 29,711 Substandard 55 368 23 519 2,890 107 13,034 16,996 Substandard-Nonaccrual 600 435 943 - 282 53 295 2,608 Total 72,105 69,863 51,808 30,824 25,103 18,912 413,665 682,280 CRE - Owner Occupied: Pass 31,231 87,203 73,534 66,267 53,059 137,935 16,604 465,833 Watch 5,216 6,901 9,735 8,204 5,020 20,652 - 55,728 Special Mention 334 769 235 2,850 550 4,377 - 9,115 Substandard - 510 - 3,440 720 472 - 5,142 Substandard-Nonaccrual - 265 - - - 7,081 - 7,346 Total 36,781 95,648 83,504 80,761 59,349 170,517 16,604 543,164 CRE - Non-Owner Occupied: Pass 57,046 152,841 90,155 123,087 69,165 237,623 3,577 733,494 Watch - 3,379 1,460 521 7,074 6,657 - 19,091 Special Mention - 61 - - - 1,373 - 1,434 Substandard - - - - - 989 - 989 Substandard-Nonaccrual - - - - - - - - Total 57,046 156,281 91,615 123,608 76,239 246,642 3,577 755,008 Land and contruction: Pass 44,780 49,617 28,182 1,560 - 1,398 1,581 127,118 Watch 7,613 12,922 - - - - - 20,535 Special Mention 4,122 - - - - - - 4,122 Substandard 1,583 - - - - - - 1,583 Substandard-Nonaccrual - - - - - - - - Total 58,098 62,539 28,182 1,560 - 1,398 1,581 153,358 Home equity: Pass - - 824 - - - 109,085 109,909 Watch - - - 281 - - 5,750 6,031 Special Mention - - - - - - 100 100 Substandard - - - - - 146 1,456 1,602 Substandard-Nonaccrual - - - - - 126 - 126 Total - - 824 281 - 272 116,391 117,768 Multifamily: Pass 9,939 48,689 18,764 30,371 18,187 43,011 844 169,805 Watch - - - - 846 401 - 1,247 Special Mention - 1,225 - 598 - - - 1,823 Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 9,939 49,914 18,764 30,969 19,033 43,412 844 172,875 Residential mortgage: Pass 1,722 11,744 4,205 11,992 37,569 19,047 - 86,279 Watch - 439 1,688 - 1,912 1,846 - 5,885 Special Mention - 691 - 1,295 561 1,069 - 3,616 Substandard - 222 - - - 269 - 491 Substandard-Nonaccrual - - - - - - - - Total 1,722 13,096 5,893 13,287 40,042 22,231 - 96,271 Consumer: Pass 15 2,980 1,589 24 14 1,051 24,941 30,614 Watch - 37 - - 131 - 1,013 1,181 Special Mention - 84 - - - - - 84 Substandard - - - - - - - - Substandard-Nonaccrual - - 1,566 - - - - 1,566 Total 15 3,101 3,155 24 145 1,051 25,954 33,445 Total loans $ 235,706 $ 450,442 $ 283,745 $ 281,314 $ 219,911 $ 504,435 $ 578,616 $ 2,554,169
Schedule of loans by class modified as troubled debt restructurings	During the Three Months Ended March 31, 2020 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 3 $ 13 $ 13 Real estate: CRE - owner occupied — — — CRE - non-owner occupied — — — Land and construction — — — Home equity — — — Multifamily — — — Residential mortgages — — — Consumer — — — Total 3 $ 13 $ 13

Business Combinations2 (Tables)

Business Combinations2 (Tables)	3 Months Ended
	Mar. 31, 2020
Business Acquisition [Line Items]
Summary of consideration paid	(Dollars in thousands) Issuance of 15,684,064 shares of common stock to Presidio shareholders and holders of restricted stock (stock price = $11.36 on October 11, 2019) $ 178,171 Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options 7,426 Cash paid for fractional shares 1 Total consideration $ 185,598
Schedule of unaudited pro forma combined consolidated financial statements and related adjustments	March 31, 2019 (Dollars in thousands, except per share amounts) Net interest income $ 41,177 Provision (credit) for loan losses (1,037) Noninterest income 2,779 Noninterest expense 23,961 Income before income taxes 21,032 Income tax expense 5,677 Net income $ 15,355 Net income per share - basic $ 0.26 Net income per share - diluted $ 0.26
Presidio bank
Business Acquisition [Line Items]
Schedule of recognized identified assets acquired and liabilities assumed	As As Recorded Fair Recorded by Value at Presidio Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 117,989 $ (1) (a) $ 117,988 Securities available-for-sale 44,647 422 (b) 45,069 Securities held-to-maturity 463 — 463 Loans 698,493 (12,529) (c) 685,964 Allowance for loan losses (7,463) 7,463 (d) — Premises and equipment, net 1,756 — 1,756 Other intangible assets — 11,147 (e) 11,147 Other assets, net 43,539 (1,378) (f) 42,161 Total assets acquired $ 899,424 $ 5,124 904,548 Liabilities assumed: Deposits $ 774,260 $ (1) (g) 774,259 Subordinated Debt 10,000 — (h) 10,000 Other borrowings 442 — 442 Other liabilities 17,916 (49) (i) 17,867 Total liabilities assumed $ 802,618 $ (50) 802,568 Net assets acquired 101,980 Purchase price 185,598 Goodwill recorded in the merger $ 83,618 Explanation of certain fair value related adjustments for the Presidio merger: (a) Represents cash paid for fractional shares in the transaction. (b) Represents the fair value adjustment on investment securities available-for-sale. (c) Represents the fair value adjustment to the net book value of loans includes an interest rate mark and credit mark adjustment. (d) Represents the elimination of Presidio’s allowance for loan losses. (e) Represents intangible assets recorded to reflect the fair value of core deposits and an above market lease. The core deposit asset was recorded as an identifiable intangible asset and is amortized on an accelerated basis over the estimated average life of the deposit base. The above market lease liability will be accreted on the straight line method over 60 months. (f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded. (g) Represents the fair value adjustment on time deposits, which was amortized as interest expense. (h) The Company acquired $10,000,000 of subordinated debt from the Presidio transaction. The Presidio subordinated debt was redeemed on December 19, 2019. (i) Represents reversal of over accrued accounts payable.

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill and Other Intangible Assets
Schedule of estimated amortization expense	United United Bay View Funding Presidio Presidio American American Tri-Valley Tri-Valley Focus Customer & Core Above Core Below Core Below Core Brokered Total Deposit Market Deposit Market Deposit Market Deposit Relationship Amortization Year Intangible Lease Intangible Lease Intangible Lease Intangible Intangible Expense (Dollars in thousands) 2020 $ 1,369 (14) $ 499 $ 171 $ 156 $ 13 $ 538 $ 142 2,874 2021 1,447 (20) 602 — 184 18 596 190 3,017 2022 1,225 (20) 553 — 167 18 502 190 2,635 2023 1,118 (20) 521 — 158 18 420 190 2,405 2024 1,026 (14) 499 — 152 18 346 159 2,186 2025 970 — 478 — 145 18 200 — 1,811 Thereafter 3,211 — 1,042 — 306 70 — — 4,629 $ 10,366 $ (88) $ 4,194 $ 171 $ 1,268 $ 173 $ 2,602 $ 871 $ 19,557

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Taxes
Summary of carrying amount of low income tax housing investment	March 31, December 31, 2020 2019 (Dollars in thousands) Low income housing investments $ 5,878 $ 6,126 Future commitments $ 625 $ 625

Benefit Plans (Tables)

Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2020
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended March 31, 2020 2019 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 123 $ 55 Interest cost 231 264 Amortization of net actuarial loss 85 46 Net periodic benefit cost $ 439 $ 365
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended March 31, 2020 2019 (Dollars in thousands) Amortization of prior transition obligation $ (15) $ (25) Interest cost 62 70 Net periodic benefit cost $ 47 $ 45
Schedule of change in projected benefit obligation	March 31, December 31, 2020 2019 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 8,198 $ 6,903 Interest cost 62 278 Actuarial loss (gain) — 1,017 Projected benefit obligation at end of period $ 8,260 $ 8,198
Schedule of amounts recognized in accumulated other comprehensive loss	March 31, December 31, 2020 2019 (Dollars in thousands) Net actuarial loss $ 3,813 $ 3,776 Prior transition obligation 1,037 1,059 Accumulated other comprehensive loss $ 4,850 $ 4,835

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value
Schedule of financial assets and liabilities measured on a recurring basis	Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at March 31, 2020 Available-for-sale securities: Agency mortgage-backed securities $ 251,836 — $ 251,836 — U.S. Treasury 121,734 121,734 — — I/O strip receivables 458 — 458 — Assets at December 31, 2019 Available-for-sale securities: Agency mortgage-backed securities $ 284,361 — $ 284,361 — U.S. Treasury 120,464 120,464 — — I/O strip receivables 503 — 503 —
Schedule of carrying amounts and estimated fair values of financial instruments	The carrying amounts and estimated fair values of financial instruments at March 31, 2020 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 $ 443,397 $ 443,397 $ — $ — $ 443,397 Securities available-for-sale 373,570 121,734 251,836 — 373,570 Securities held-to-maturity 348,044 — 356,153 — 356,153 Loans (including loans held-for-sale), net 2,511,623 — 2,415 2,494,661 2,497,076 FHLB stock, FRB stock, and other investments 33,339 — — — N/A Accrued interest receivable 10,231 616 1,997 7,618 10,231 I/O strips receivables 458 — 458 — 458 Liabilities: Time deposits $ 150,238 $ — $ 150,728 $ — $ 150,728 Other deposits 3,216,401 — 3,216,401 — 3,216,401 Subordinated debt 39,600 — 38,100 — 38,100 Accrued interest payable 1,198 — 1,198 — 1,198 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2019: ` 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 $ 457,370 $ 457,370 $ — $ — $ 457,370 Securities available-for-sale 404,825 120,464 284,361 — 404,825 Securities held-to-maturity 366,560 — 368,107 — 368,107 Loans (including loans held-for-sale), net 2,511,611 — 1,052 2,512,277 2,513,329 FHLB stock, FRB stock, and other investments 29,842 — — — N/A Accrued interest receivable 10,915 446 2,218 8,251 10,915 I/O strips receivables 503 — 503 — 503 Liabilities: Time deposits $ 168,034 $ — $ 158,704 $ — $ 158,704 Other deposits 3,246,734 — 3,246,734 — 3,246,734 Subordinated debt 39,554 — 40,404 — 40,404 Accrued interest payable 707 — 707 — 707

Equity Plan (Tables)

Equity Plan (Tables)	3 Months Ended
	Mar. 31, 2020
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, 2020 2,712,846 $ 8.80 Granted 25,000 $ 11.58 Exercised (200,063) $ 5.53 Forfeited or expired (32,260) $ 13.80 Outstanding at March 31, 2020 2,505,523 $ 9.03 5.44 $ 3,087,857 Vested or expected to vest 2,355,192 5.44 $ 2,902,585 Exercisable at March 31, 2020 2,047,781 4.75 $ 3,087,857
Schedule of information related to the equity Plan	Three Months Ended March 31, 2020 2019 Intrinsic value of options exercised $ 1,346,186 $ 197,994 Cash received from option exercise $ 1,105,991 $ 268,691 Tax benefit realized from option exercises $ 14,471 $ 26,578 Weighted average fair value of options granted $ 1.59 $ 3.24
Schedule of assumptions used to estimate the fair value of each option grant on the date of grant	Three Months Ended March 31, 2020 2019 Expected life in months(1) 72 N/A Volatility(1) 24 % N/A Weighted average risk-free interest rate(2) 1.52 % N/A Expected dividends(3) 4.49 % N/A (1) The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option. (2) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted. (3) Each grant’s dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company’s common stock as of the grant date
Schedule of restricted stock activity under the equity plans	Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2020 239,453 $ 11.23 Granted — $ — Vested — $ — Forfeited or expired — $ — Nonvested shares at March 31, 2020 239,453 $ 11.23

Capital Requirements (Tables)

Capital Requirements (Tables)	3 Months Ended
	Mar. 31, 2020
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of March 31, 2020 Total Capital $ 468,876 14.9 % $ 331,450 10.5 % (to risk-weighted assets) Tier 1 Capital $ 389,796 12.3 % $ 268,317 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 389,796 12.3 % $ 220,967 7.0 % (to risk-weighted assets) Tier 1 Capital $ 389,796 10.1 % $ 153,703 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, 2019 Total Capital $ 457,158 14.6 % $ 329,306 10.5 % (to risk-weighted assets) Tier 1 Capital $ 393,432 12.5 % $ 266,581 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 393,432 12.5 % $ 219,538 7.0 % (to risk-weighted assets) Tier 1 Capital $ 393,432 9.7 % $ 161,677 4.0 % (to average assets) (2) Includes 2.5% capital conservation buffer, effective January 1, 2019, 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 March 31, 2020 Total Capital $ 444,676 14.1 % $ 315,256 10.0 % $ 331,018 10.5 % (to risk-weighted assets) Tier 1 Capital $ 405,247 12.9 % $ 252,204 8.0 % $ 267,967 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 405,247 12.9 % $ 204,916 6.5 % $ 220,679 7.0 % (to risk-weighted assets) Tier 1 Capital $ 405,247 10.6 % $ 191,927 5.0 % $ 153,542 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, 2019 Total Capital $ 435,757 13.9 % $ 313,485 10.0 % $ 329,159 10.5 % (to risk-weighted assets) Tier 1 Capital $ 411,585 13.1 % $ 250,788 8.0 % $ 266,462 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 411,585 13.1 % $ 203,765 6.5 % $ 219,439 7.0 % (to risk-weighted assets) Tier 1 Capital $ 411,585 10.2 % $ 202,013 5.0 % $ 161,611 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.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended March 31, 2020 2019 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 969 $ 1,161 Gain on the disposition of foreclosed assets 791 — Total noninterest income in-scope of Topic 606 1,760 1,161 Noninterest Income Out-of-scope of Topic 606 1,433 1,307 Total noninterest income $ 3,193 $ 2,468

Noninterest Expense (Tables)

Noninterest Expense (Tables)	3 Months Ended
	Mar. 31, 2020
Noninterest Expense
Schedule of noninterest expense	Three Months Ended March 31, 2020 2019 (Dollars in thousands) Salaries and employee benefits $ 14,203 $ 10,770 Occupancy and equipment 1,772 1,506 Professional fees 1,435 818 Data processing 976 679 Software subscriptions 889 589 Amortization of intangible assets 858 553 Insurance expense 518 436 Other 5,123 2,567 Total noninterest expense $ 25,774 $ 17,918 The following table presents the merger-related costs by category for the periods indicated: For the Three Months Ended March 31, March 31, 2020 2019 (Dollars in thousands) Salaries and employee benefits $ 356 $ — Other 2,068 — Total merger-related costs $ 2,424 $ —

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases
Schedule of leases	March 31, 2020 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,769 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,190 Operating Lease - ROU assets $ 38,098 Operating Lease - Liabilities $ 38,098 Weighted Average Lease Term - Operating Leases 8.64 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) 2020 $ 4,420 2021 5,029 2022 5,448 2023 4,812 2024 4,575 Thereafter 22,663 Total undiscounted cash flows 46,947 Discount on cash flows (8,849) Total lease liability $ 38,098

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2020
Business Segment Information
Schedule of information by operating segment	Three Months Ended March 31, 2020 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 38,065 $ 2,877 $ 40,942 Intersegment interest allocations 284 (284) — Total interest expense 2,362 — 2,362 Net interest income 35,987 2,593 38,580 Provision for credit losses on loans 12,874 396 13,270 Net interest income after provision 23,113 2,197 25,310 Noninterest income 3,023 170 3,193 Noninterest expense 24,183 1,591 25,774 Intersegment expense allocations 129 (129) — Income before income taxes 2,082 647 2,729 Income tax expense 677 191 868 Net income $ 1,405 $ 456 $ 1,861 Total assets $ 4,009,344 $ 68,818 $ 4,078,162 Loans, net of deferred fees $ 2,499,837 $ 54,074 $ 2,553,911 Goodwill $ 154,327 $ 13,044 $ 167,371 (1) Includes the holding company’s results of operations Three Months Ended March 31, 2019 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 30,496 2,953 $ 33,449 Intersegment interest allocations 314 (314) — Total interest expense 2,407 — 2,407 Net interest income 28,403 2,639 31,042 Provision for loan losses (892) (169) (1,061) Net interest income after provision 29,295 2,808 32,103 Noninterest income 2,232 236 2,468 Noninterest expense 16,201 1,717 17,918 Intersegment expense allocations 121 (121) — Income before income taxes 15,447 1,206 16,653 Income tax expense 4,151 356 4,507 Net income $ 11,296 $ 850 $ 12,146 Total assets $ 3,053,116 $ 62,761 $ 3,115,877 Loans, net of deferred fees $ 1,800,064 $ 48,254 $ 1,848,318 Goodwill $ 70,709 $ 13,044 $ 83,753 (1) Includes the holding company’s results of operations

Basis of Presentation (Details)

Basis of Presentation (Details)	1 Months Ended			3 Months Ended		12 Months Ended
	Oct. 31, 2019	May 31, 2018	Apr. 30, 2018	Mar. 31, 2020USD ($)segment	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)	Jan. 01, 2020USD ($)	Dec. 31, 2018USD ($)
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				$ 38,098,000
Operating lease liability				38,098,000
Allowance for credit losses on debt securities				55,000			$ 58,000
Loans, net of deferred fees				2,554,169,000		$ 2,534,163,000
Allowance for credit losses on loans				44,703,000		23,285,000	31,855,000
Allowance for credit losses on off-balance sheet credit exposures							679,000
Provision (credit) for credit losses on loans(1)				13,270,000	$ (1,061,000)
Impact of adopting Topic 326						(6,062,000)
Retained earnings				84,803,000		96,741,000
Debt Securities, Held-to-maturity, Credit Loss reduction				(3,000)
Off-Balance Sheet, Credit Loss, Liability, Credit Loss reduction				$ (305,000)
Tri Valley Bank and United American Bank | Core deposit
Finite-Lived Intangible Asset, Useful Life				10 years
Tri Valley Bank | Core deposit
Finite-Lived Intangible Asset, Useful Life			10 years
Tri Valley Bank | Below market-value lease
Finite-Lived Intangible Asset, Useful Life			11 years	11 years
United American Bank | Core deposit
Finite-Lived Intangible Asset, Useful Life		10 years
United American Bank | Below market-value lease
Finite-Lived Intangible Asset, Useful Life		3 years		3 years
Presidio bank
Finite-Lived Intangible Asset, Useful Life	60 months
Presidio bank | Core deposit
Finite-Lived Intangible Asset, Useful Life	10 years
Presidio bank | Below or Above market-value lease
Finite-Lived Intangible Asset, Useful Life	60 months			5 years
ASU 2016-03 - Topic 326
Allowance for credit losses on loans						8,570,000
ASU 2016-03 - Topic 326 | Restatement Adjustment
Allowance for credit losses on debt securities						58,000
Allowance for credit losses on loans						8,570,000
Allowance for credit losses on off-balance sheet credit exposures						(207,000)
Retained earnings						(6,062,000)
Amount of related income tax effect of a cumulative effect on retained earnings						2,357,000
ASU 2016-03 - Topic 326 | Previously Reported
Allowance for credit losses on loans						23,285,000
Allowance for credit losses on off-balance sheet credit exposures						886,000
Commercial
Loans, net of deferred fees				$ 682,280,000			6,790,000
Allowance for credit losses on loans				12,801,000	15,557,000	10,453,000	6,790,000	$ 17,061,000
Provision (credit) for credit losses on loans(1)				6,472,000	(1,993,000)
Commercial | ASU 2016-03 - Topic 326
Allowance for credit losses on loans						(3,663,000)
Commercial | ASU 2016-03 - Topic 326 | Restatement Adjustment
Loans, net of deferred fees						(3,663,000)
Commercial | ASU 2016-03 - Topic 326 | Previously Reported
Loans, net of deferred fees						10,453,000
CRE - owner occupied
Loans, net of deferred fees				543,164,000			6,994,000
Allowance for credit losses on loans				7,737,000		3,825,000	6,994,000
Provision (credit) for credit losses on loans(1)				743,000
CRE - owner occupied | ASU 2016-03 - Topic 326
Allowance for credit losses on loans						3,169,000
CRE - owner occupied | ASU 2016-03 - Topic 326 | Restatement Adjustment
Loans, net of deferred fees						3,169,000
CRE - owner occupied | ASU 2016-03 - Topic 326 | Previously Reported
Loans, net of deferred fees						3,825,000
CRE - non-owner occupied
Loans, net of deferred fees				755,008,000		767,821,000	11,672,000
Allowance for credit losses on loans				15,645,000		3,760,000	11,672,000
Provision (credit) for credit losses on loans(1)				3,973,000
CRE - non-owner occupied | ASU 2016-03 - Topic 326
Allowance for credit losses on loans						7,912,000
CRE - non-owner occupied | ASU 2016-03 - Topic 326 | Restatement Adjustment
Loans, net of deferred fees						7,912,000
CRE - non-owner occupied | ASU 2016-03 - Topic 326 | Previously Reported
Loans, net of deferred fees						3,760,000
Land and construction
Loans, net of deferred fees				153,358,000			1,458,000
Allowance for credit losses on loans				2,603,000	27,318,000	2,621,000	1,458,000	$ 27,848,000
Provision (credit) for credit losses on loans(1)				1,126,000	$ (1,061,000)
Land and construction | ASU 2016-03 - Topic 326
Allowance for credit losses on loans						(1,163,000)
Land and construction | ASU 2016-03 - Topic 326 | Restatement Adjustment
Loans, net of deferred fees						(1,163,000)
Land and construction | ASU 2016-03 - Topic 326 | Previously Reported
Loans, net of deferred fees						2,621,000
Home equity
Loans, net of deferred fees				117,768,000			1,321,000
Allowance for credit losses on loans				1,746,000		2,244,000	1,321,000
Provision (credit) for credit losses on loans(1)				402,000
Home equity | ASU 2016-03 - Topic 326
Allowance for credit losses on loans						(923,000)
Home equity | ASU 2016-03 - Topic 326 | Restatement Adjustment
Loans, net of deferred fees						(923,000)
Home equity | ASU 2016-03 - Topic 326 | Previously Reported
Loans, net of deferred fees						2,244,000
Multi-family
Loans, net of deferred fees				172,875,000			1,253,000
Allowance for credit losses on loans				1,622,000		57,000	1,253,000
Provision (credit) for credit losses on loans(1)				369,000
Multi-family | ASU 2016-03 - Topic 326
Allowance for credit losses on loans						1,196,000
Multi-family | ASU 2016-03 - Topic 326 | Restatement Adjustment
Loans, net of deferred fees						1,196,000
Multi-family | ASU 2016-03 - Topic 326 | Previously Reported
Loans, net of deferred fees						57,000
Residential mortgages
Loans, net of deferred fees				96,271,000			678,000
Allowance for credit losses on loans				708,000		243,000	678,000
Provision (credit) for credit losses on loans(1)				30,000
Residential mortgages | ASU 2016-03 - Topic 326
Allowance for credit losses on loans						435,000
Residential mortgages | ASU 2016-03 - Topic 326 | Restatement Adjustment
Loans, net of deferred fees						435,000
Residential mortgages | ASU 2016-03 - Topic 326 | Previously Reported
Loans, net of deferred fees						243,000
Consumer and other
Loans, net of deferred fees							1,689,000
Allowance for credit losses on loans				1,841,000		82,000	$ 1,689,000
Provision (credit) for credit losses on loans(1)				155,000
Consumer and other | ASU 2016-03 - Topic 326
Allowance for credit losses on loans						1,607,000
Consumer and other | ASU 2016-03 - Topic 326 | Restatement Adjustment
Loans, net of deferred fees						1,607,000
Consumer and other | ASU 2016-03 - Topic 326 | Previously Reported
Loans, net of deferred fees						$ 82,000
Consumer
Loans, net of deferred fees				$ 33,445,000

Shareholders' Equity and Earn_3

Shareholders' Equity and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 1,861	$ 12,146
Weighted average common shares outstanding for basic earnings per common share (in shares)	59,286,927	43,108,208
Dilutive potential common shares	907,098	562,133
Shares used in computing diluted earnings per common share (in shares)	60,194,025	43,670,341
Basic earnings per share (in dollars per share)	$ 0.03	$ 0.28
Diluted earnings per share (in dollars per share)	$ 0.03	$ 0.28
Number of shares not in computing diluted earnings per common share	908,276	539,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	$ (9,778)
Net current period other comprehensive income (loss), net of taxes	5,069	$ 3,394
Balance at the end of the period, net of taxes	(4,709)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(9,778)	(12,381)
Other comprehensive income (loss) before reclassification, net of taxes	5,100	3,397
Amounts reclassified from other comprehensive income (loss), net of taxes	(31)	(3)
Net current period other comprehensive income (loss), net of taxes	5,069	3,394
Balance at the end of the period, net of taxes	(4,709)	(8,987)
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	1,602	(5,007)
Other comprehensive income (loss) before reclassification, net of taxes	5,096	3,404
Amounts reclassified from other comprehensive income (loss), net of taxes	(71)
Net current period other comprehensive income (loss), net of taxes	5,025	3,404
Balance at the end of the period, net of taxes	6,627	(1,603)
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	298	344
Amounts reclassified from other comprehensive income (loss), net of taxes	(9)	(18)
Net current period other comprehensive income (loss), net of taxes	(9)	(18)
Balance at the end of the period, net of taxes	289	326
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(11,678)	(7,718)
Other comprehensive income (loss) before reclassification, net of taxes	4	(7)
Amounts reclassified from other comprehensive income (loss), net of taxes	49	15
Net current period other comprehensive income (loss), net of taxes	53	8
Balance at the end of the period, net of taxes	$ (11,625)	$ (7,710)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Amount Reclassified from AOCI
Gain on sales of securities	$ 100
Interest income on taxable securities	3,948	$ 4,509
Income tax expense	(868)	(4,507)
Net income	1,861	12,146
Income before income tax	2,729	16,653
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Amount Reclassified from AOCI
Net of tax	71
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	100
Income tax expense	(29)
Net income	71
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Amount Reclassified from AOCI
Net of tax	9	18
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	26
Income tax expense	(4)	(8)
Net income	9	18
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	(49)	(15)
Defined Benefit Pension Plan Items | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(70)	(21)
Income tax benefit	21	6
Net of tax	(49)	(15)
Prior transition obligation | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	15	25
Actuarial losses | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(85)	(46)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax	31	3
Accumulated Other Comprehensive Income / (Loss) | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ 31	$ 3

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Securities available-for-sale:
Amortized Cost	$ 364,160	$ 402,537
Gross Unrealized Gains	9,410	2,459
Gross Unrealized (Losses)		(171)
Allowances for Credit Losses		404,825
Estimated Fair Value	373,570	404,825
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	244,968	283,598
Gross Unrealized Gains	6,868	934
Gross Unrealized (Losses)		(171)
Allowances for Credit Losses		284,361
Estimated Fair Value	251,836	284,361
U.S. Treasury
Securities available-for-sale:
Amortized Cost	119,192	118,939
Gross Unrealized Gains	2,542	1,525
Allowances for Credit Losses		120,464
Estimated Fair Value	$ 121,734	$ 120,464

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Securities held-to-maturity:
Amortized Cost	$ 348,099		$ 366,560
Gross Unrealized Gains	8,055		2,519
Gross Unrealized (Losses)	(1)		(972)
Allowance for credit losses on debt securities	55	$ 58
Estimated Fair Value	356,153		368,107
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	270,211		285,344
Gross Unrealized Gains	6,746		1,206
Gross Unrealized (Losses)	(1)		(968)
Estimated Fair Value	276,956		285,582
Municipals - exempt from Federal tax
Securities held-to-maturity:
Amortized Cost	77,888		81,216
Gross Unrealized Gains	1,309		1,313
Gross Unrealized (Losses)			(4)
Allowance for credit losses on debt securities	(55)
Estimated Fair Value	$ 79,197		$ 82,525

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Available-for-sale (Details) $ in Thousands	Dec. 31, 2019USD ($)
Available-for-sale, Fair Value
Less Than 12 Months	$ 100,816
12 Months or More	27,534
Total	128,350
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(105)
12 Months or More	(66)
Total	(171)
Agency mortgage-backed securities
Available-for-sale, Fair Value
Less Than 12 Months	100,816
12 Months or More	27,534
Total	128,350
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(105)
12 Months or More	(66)
Total	$ (171)

Securities - Securities with _2

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Held-to-maturity, Fair Value
Less Than 12 Months		$ 51,616
12 Months or More	$ 1,183	88,128
Total	1,183	139,744
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months		(182)
12 Months or More	(1)	(790)
Total	(1)	(972)
Agency mortgage-backed securities
Held-to-maturity, Fair Value
Less Than 12 Months		50,060
12 Months or More	1,183	88,128
Total	1,183	138,188
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months		(178)
12 Months or More	(1)	(790)
Total	$ (1)	(968)
Municipals - exempt from Federal tax
Held-to-maturity, Fair Value
Less Than 12 Months		1,556
Total		1,556
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months		(4)
Total		$ (4)

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)security	Dec. 31, 2019USD ($)	Mar. 31, 2019item
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			442
Number of available for sale securities held | item			128
Number of held to maturity securities held | item			314
12 Months or More	$ 1,183	$ 88,128
Total unrealized loss for securities 12 months or more	1
Available-for-sale securities carried with an unrealized loss for over 12 months		27,534
Held-to-maturity securities carried with an unrealized loss for over 12 months	$ 1,183	$ 88,128

Securities - Proceeds from Sale

Securities - Proceeds from Sales of Securities and the Resulting Gains and Losses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Proceeds from Sales of Securities and the Resulting Gains and Losses
Proceeds	$ 26,513
Gross gains	$ 100

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	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale, Amortized Cost
Due after 3 months through one year	$ 74,668
Due after one year through five years	44,524
Agency mortgage-backed securities	244,968
Total	364,160	$ 402,537
Available-for-sale, Estimated Fair Value
Due after 3 months through one year	75,759
Due after one year through five years	45,975
Agency mortgage-backed securities	251,836
Total	$ 373,570	$ 404,825

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	Mar. 31, 2020	Dec. 31, 2019
Held-to-maturity, Amortized Cost
Due after 3 months through one year	$ 1,446
Due after one year through five years	6,410
Due after five years through ten years	36,178
Due after ten years	33,854
Agency mortgage-backed securities	270,211
Total	348,099
Held-to-maturity, Estimated Fair Value
Due after 3 months through one year	1,451
Due after one year through five years	6,574
Due after five years through ten years	36,812
Due after ten years	34,360
Agency mortgage-backed securities	276,956
Total	$ 356,153	$ 368,107

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
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	$ 41,408	$ 32,773

Securities - Rollforward by maj

Securities - Rollforward by major security type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Impact of adopting Topic 326		$ (6,062)
Provision (credit) for credit loss	$ (3)
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Ending Balance	55
Held-to-maturity Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Provision (credit) for credit loss	(3)
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Ending Balance	55
Restatement Adjustment | ASU 2016-03 - Topic 326
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Beginning Balance	$ 58
Restatement Adjustment | Held-to-maturity Securities [Member] | ASU 2016-03 - Topic 326
Schedule of Held-to-maturity Securities [Line Items]
Impact of adopting Topic 326		$ 58

Allowance for Credit Losses o_3

Allowance for Credit Losses on Loans - Loans Balance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Jan. 01, 2020	Mar. 31, 2019	Dec. 31, 2018
Loans held-for-investment:
Total loan balance	$ 2,534,163	$ 2,554,169
Deferred loan fees, net	(319)	(258)
Loans, net of deferred fees	2,533,844	2,553,911		$ 1,848,318
Allowance for credit losses on loans(1)	(23,285)	(44,703)	$ (31,855)
Loans, net	2,510,559	2,509,208
Retained earnings	96,741	84,803
Commercial
Loans held-for-investment:
Total loan balance	631,547	682,280
Allowance for credit losses on loans(1)	(10,453)
Real estate
Loans held-for-investment:
Total loan balance	1,882,734
Allowance for credit losses on loans(1)	(12,750)			(11,671)	$ (10,671)
Consumer
Loans held-for-investment:
Total loan balance	19,882
Allowance for credit losses on loans(1)	(82)			(90)	(116)
Commercial
Loans held-for-investment:
Total loan balance		682,280	6,790
Allowance for credit losses on loans(1)	(10,453)	(12,801)	(6,790)	(15,557)	(17,061)
Commercial | Commercial
Loans held-for-investment:
Total loan balance	603,345	682,280
CRE - owner occupied
Loans held-for-investment:
Total loan balance		543,164	6,994
Allowance for credit losses on loans(1)	(3,825)	(7,737)	(6,994)
CRE - owner occupied | Real estate
Loans held-for-investment:
Total loan balance	548,907	543,164
CRE - non-owner occupied
Loans held-for-investment:
Total loan balance	767,821	755,008	11,672
Allowance for credit losses on loans(1)	(3,760)	(15,645)	(11,672)
CRE - non-owner occupied | Real estate
Loans held-for-investment:
Total loan balance	767,821	755,008
Land and construction
Loans held-for-investment:
Total loan balance		153,358	1,458
Allowance for credit losses on loans(1)	(2,621)	(2,603)	(1,458)	$ (27,318)	$ (27,848)
Land and construction | Real estate
Loans held-for-investment:
Total loan balance	147,189	153,358
Home equity
Loans held-for-investment:
Total loan balance		117,768	1,321
Allowance for credit losses on loans(1)	(2,244)	(1,746)	(1,321)
Home equity | Real estate
Loans held-for-investment:
Total loan balance	151,775	117,768
Multi-family
Loans held-for-investment:
Total loan balance		172,875	1,253
Allowance for credit losses on loans(1)	(57)	(1,622)	(1,253)
Multi-family | Real estate
Loans held-for-investment:
Total loan balance	180,623	172,875
Residential mortgages
Loans held-for-investment:
Total loan balance		96,271	678
Allowance for credit losses on loans(1)	(243)	(708)	(678)
Residential mortgages | Real estate
Loans held-for-investment:
Total loan balance	100,759	96,271
Consumer and other
Loans held-for-investment:
Total loan balance			1,689
Allowance for credit losses on loans(1)	(82)	(1,841)	$ (1,689)
Consumer and other | Consumer
Loans held-for-investment:
Total loan balance	33,744	33,445
Consumer
Loans held-for-investment:
Total loan balance		$ 33,445
Consumer | Consumer
Loans held-for-investment:
Total loan balance	33,744
ASU 2016-03 - Topic 326
Loans held-for-investment:
Allowance for credit losses on loans(1)	(8,570)
ASU 2016-03 - Topic 326 | Commercial
Loans held-for-investment:
Allowance for credit losses on loans(1)	3,663
ASU 2016-03 - Topic 326 | CRE - owner occupied
Loans held-for-investment:
Allowance for credit losses on loans(1)	(3,169)
ASU 2016-03 - Topic 326 | CRE - non-owner occupied
Loans held-for-investment:
Allowance for credit losses on loans(1)	(7,912)
ASU 2016-03 - Topic 326 | Land and construction
Loans held-for-investment:
Allowance for credit losses on loans(1)	1,163
ASU 2016-03 - Topic 326 | Home equity
Loans held-for-investment:
Allowance for credit losses on loans(1)	923
ASU 2016-03 - Topic 326 | Multi-family
Loans held-for-investment:
Allowance for credit losses on loans(1)	(1,196)
ASU 2016-03 - Topic 326 | Residential mortgages
Loans held-for-investment:
Allowance for credit losses on loans(1)	(435)
ASU 2016-03 - Topic 326 | Consumer and other
Loans held-for-investment:
Allowance for credit losses on loans(1)	(1,607)
Restatement Adjustment | ASU 2016-03 - Topic 326
Loans held-for-investment:
Allowance for credit losses on loans(1)	(8,570)
Amount of related income tax effect of a cumulative effect on retained earnings	2,357
Retained earnings	(6,062)
Restatement Adjustment | ASU 2016-03 - Topic 326 | Commercial
Loans held-for-investment:
Total loan balance	(3,663)
Restatement Adjustment | ASU 2016-03 - Topic 326 | CRE - owner occupied
Loans held-for-investment:
Total loan balance	3,169
Restatement Adjustment | ASU 2016-03 - Topic 326 | CRE - non-owner occupied
Loans held-for-investment:
Total loan balance	7,912
Restatement Adjustment | ASU 2016-03 - Topic 326 | Land and construction
Loans held-for-investment:
Total loan balance	(1,163)
Restatement Adjustment | ASU 2016-03 - Topic 326 | Home equity
Loans held-for-investment:
Total loan balance	(923)
Restatement Adjustment | ASU 2016-03 - Topic 326 | Multi-family
Loans held-for-investment:
Total loan balance	1,196
Restatement Adjustment | ASU 2016-03 - Topic 326 | Residential mortgages
Loans held-for-investment:
Total loan balance	435
Restatement Adjustment | ASU 2016-03 - Topic 326 | Consumer and other
Loans held-for-investment:
Total loan balance	1,607
Previously Reported | ASU 2016-03 - Topic 326
Loans held-for-investment:
Allowance for credit losses on loans(1)	(23,285)
Previously Reported | ASU 2016-03 - Topic 326 | Commercial
Loans held-for-investment:
Total loan balance	10,453
Previously Reported | ASU 2016-03 - Topic 326 | CRE - owner occupied
Loans held-for-investment:
Total loan balance	3,825
Previously Reported | ASU 2016-03 - Topic 326 | CRE - non-owner occupied
Loans held-for-investment:
Total loan balance	3,760
Previously Reported | ASU 2016-03 - Topic 326 | Land and construction
Loans held-for-investment:
Total loan balance	2,621
Previously Reported | ASU 2016-03 - Topic 326 | Home equity
Loans held-for-investment:
Total loan balance	2,244
Previously Reported | ASU 2016-03 - Topic 326 | Multi-family
Loans held-for-investment:
Total loan balance	57
Previously Reported | ASU 2016-03 - Topic 326 | Residential mortgages
Loans held-for-investment:
Total loan balance	243
Previously Reported | ASU 2016-03 - Topic 326 | Consumer and other
Loans held-for-investment:
Total loan balance	$ 82

Allowance for Credit Losses o_4

Allowance for Credit Losses on Loans - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Changes in the Allowance for Loan Losses
Beginning of period balance	$ 23,285
Charge-offs	(673)
Recoveries	251
Net (charge-offs) recoveries	(422)
Provision (credit) for credit losses on loans(1)	13,270	$ (1,061)
End of period balance	44,703
ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	8,570
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance	10,453
Real estate
Changes in the Allowance for Loan Losses
Beginning of period balance	12,750	10,671
Recoveries		42
Net (charge-offs) recoveries		42
Provision (credit) for credit losses on loans(1)		958
End of period balance		11,671
Consumer
Changes in the Allowance for Loan Losses
Beginning of period balance	82	116
Provision (credit) for credit losses on loans(1)		(26)
End of period balance		90
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance	10,453	17,061
Charge-offs	(670)	(226)
Recoveries	209	715
Net (charge-offs) recoveries	(461)	489
Provision (credit) for credit losses on loans(1)	6,472	(1,993)
End of period balance	12,801	15,557
Commercial | ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	(3,663)
CRE - owner occupied
Changes in the Allowance for Loan Losses
Beginning of period balance	3,825
Provision (credit) for credit losses on loans(1)	743
End of period balance	7,737
CRE - owner occupied | ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	3,169
CRE - non-owner occupied
Changes in the Allowance for Loan Losses
Beginning of period balance	3,760
Provision (credit) for credit losses on loans(1)	3,973
End of period balance	15,645
CRE - non-owner occupied | ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	7,912
Land and construction
Changes in the Allowance for Loan Losses
Beginning of period balance	2,621	27,848
Charge-offs		(226)
Recoveries	19	757
Net (charge-offs) recoveries	19	531
Provision (credit) for credit losses on loans(1)	1,126	(1,061)
End of period balance	2,603	$ 27,318
Land and construction | ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	(1,163)
Home equity
Changes in the Allowance for Loan Losses
Beginning of period balance	2,244
Recoveries	23
Net (charge-offs) recoveries	23
Provision (credit) for credit losses on loans(1)	402
End of period balance	1,746
Home equity | ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	(923)
Multi-family
Changes in the Allowance for Loan Losses
Beginning of period balance	57
Provision (credit) for credit losses on loans(1)	369
End of period balance	1,622
Multi-family | ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	1,196
Residential mortgages
Changes in the Allowance for Loan Losses
Beginning of period balance	243
Provision (credit) for credit losses on loans(1)	30
End of period balance	708
Residential mortgages | ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	435
Consumer and other
Changes in the Allowance for Loan Losses
Beginning of period balance	82
Charge-offs	(3)
Net (charge-offs) recoveries	(3)
Provision (credit) for credit losses on loans(1)	155
End of period balance	1,841
Consumer and other | ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance	$ 1,607

Allowance for Credit Losses o_5

Allowance for Credit Losses on Loans - Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Individually evaluated for impairment			$ 1,835
Allowance for loan losses, Collectively evaluated for impairment			21,450
Total allowance balance	$ 44,703	$ 31,855	23,285
Loans, Individually evaluated for impairment			10,264
Loans, Collectively evaluated for impairment			2,523,899
Total loan balance	2,554,169		2,534,163
Commercial
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Individually evaluated for impairment			1,835
Allowance for loan losses, Collectively evaluated for impairment			8,618
Total allowance balance			10,453
Loans, Individually evaluated for impairment			4,810
Loans, Collectively evaluated for impairment			626,737
Total loan balance	$ 682,280		631,547
Real estate
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Collectively evaluated for impairment			12,750
Total allowance balance			12,750	$ 11,671	$ 10,671
Loans, Individually evaluated for impairment			5,454
Loans, Collectively evaluated for impairment			1,877,280
Total loan balance			1,882,734
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			82
Total allowance balance			82	$ 90	$ 116
Loans, Collectively evaluated for impairment			19,882
Total loan balance			$ 19,882

Allowance for Credit Losses o_6

Allowance for Credit Losses on Loans - Nonaccrual Status and Loans Past Due Over 90 Days (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no allowance	$ 8,253
Nonaccrual Financing Receivable, with allowance	3,393	$ 1,153
Nonaccrual with allowance for credit losses		2,697
Nonaccrual loans		8,675
Loans Over 90 Days Past Due and Still Accruing	442
Total	12,088	9,828
Commercial
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no allowance	781
Nonaccrual Financing Receivable, with allowance	1,827	1,153
Nonaccrual loans		3,444
Loans Over 90 Days Past Due and Still Accruing	442
Total	3,050	4,597
Consumer
Nonperforming Loans by Class
Nonaccrual Financing Receivable, with allowance	1,566
Total	1,566
Commercial
Nonperforming Loans by Class
Nonaccrual with allowance for credit losses		2,697
CRE | Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no allowance	7,346
Nonaccrual loans		5,094
Total	7,346	5,094
Home equity | Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no allowance	126
Nonaccrual loans		137
Total	$ 126	$ 137

Allowance for Credit Losses o_7

Allowance for Credit Losses on Loans - Aging of Past Due Loans by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 18,211		$ 15,315
Current	2,535,958		2,518,848
Total loan balance	2,554,169		2,534,163
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	8,520		4,770
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,439		2,234
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	7,252		8,311
Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due	10,544
Current	671,736
Total loan balance	682,280		631,547
Commercial | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	7,256
Commercial | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,130
Commercial | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,158
Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance			1,882,734
Consumer
Aging of Past Due Loans by Class of Loans
Total loan balance			19,882
Commercial
Aging of Past Due Loans by Class of Loans
Total loan balance	682,280	$ 6,790
Commercial | Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due			10,084
Current			593,261
Total loan balance	682,280		603,345
Commercial | Commercial | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due			4,770
Commercial | Commercial | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due			2,097
Commercial | Commercial | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due			3,217
CRE - owner occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	543,164	6,994
CRE - owner occupied | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	6,971		5,094
Current	536,193		543,813
Total loan balance	543,164		548,907
CRE - owner occupied | Real estate | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	693
CRE - owner occupied | Real estate | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,184
CRE - owner occupied | Real estate | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	5,094		5,094
CRE - non-owner occupied
Aging of Past Due Loans by Class of Loans
Current	755,008		767,821
Total loan balance	755,008	11,672	767,821
CRE - non-owner occupied | Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	755,008		767,821
Land and construction
Aging of Past Due Loans by Class of Loans
Total loan balance	153,358	1,458
Land and construction | Real estate
Aging of Past Due Loans by Class of Loans
Current	153,358		147,189
Total loan balance	153,358		147,189
Home equity
Aging of Past Due Loans by Class of Loans
Total loan balance	117,768	1,321
Home equity | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	696		137
Current	117,072		151,638
Total loan balance	117,768		151,775
Home equity | Real estate | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	571
Home equity | Real estate | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	125		137
Multi-family
Aging of Past Due Loans by Class of Loans
Total loan balance	172,875	1,253
Multi-family | Real estate
Aging of Past Due Loans by Class of Loans
Current	172,875		180,623
Total loan balance	172,875		180,623
Residential mortgages
Aging of Past Due Loans by Class of Loans
Total loan balance	96,271	678
Residential mortgages | Real estate
Aging of Past Due Loans by Class of Loans
Current	96,271		100,759
Total loan balance	96,271		100,759
Consumer and other
Aging of Past Due Loans by Class of Loans
Total loan balance		$ 1,689
Consumer and other | Consumer
Aging of Past Due Loans by Class of Loans
Total loan balance	33,445		33,744
Consumer
Aging of Past Due Loans by Class of Loans
Current	33,445
Total loan balance	$ 33,445
Consumer | Consumer
Aging of Past Due Loans by Class of Loans
Current			33,744
Total loan balance			$ 33,744

Allowance for Credit Losses o_8

Allowance for Credit Losses on Loans - Aging of Past Due Loans by Class of Loans - Additional Information (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater	$ 18,211,000	$ 15,315,000
Nonaccrual loans		8,675,000
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	7,711,000	7,413,000
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	$ 3,935,000
Less than 30 days past due nonaccrual loans held-for-investment		$ 1,262,000

Allowance for Credit Losses o_9

Allowance for Credit Losses on Loans - Credit Quality Classification (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)item	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)	Jan. 01, 2020USD ($)
Loans
Total	$ 2,554,169,000		$ 2,534,163,000
Classified
Loans
Total	$ 39,603,000	$ 25,200,000	$ 32,579,000
Percentage of financing receivable balance over total assets	0.97%	0.81%	0.79%
Commercial
Loans
Total	$ 682,280,000		$ 631,547,000
Real estate
Loans
Total			1,882,734,000
Consumer
Loans
Total			19,882,000
Commercial
Loans
Total	$ 682,280,000			$ 6,790,000
Number of lending relationships moved to classified assets | item	1
Commercial | Commercial
Loans
Total	$ 682,280,000		603,345,000
CRE
Loans
Number of lending relationships moved to classified assets | item	2
CRE - owner occupied
Loans
Total	$ 543,164,000			6,994,000
CRE - owner occupied | Real estate
Loans
Total	543,164,000		548,907,000
CRE - non-owner occupied
Loans
Total	755,008,000		767,821,000	11,672,000
CRE - non-owner occupied | Real estate
Loans
Total	755,008,000		767,821,000
Land and construction
Loans
Total	153,358,000			1,458,000
Land and construction | Real estate
Loans
Total	153,358,000		147,189,000
Home equity
Loans
Total	117,768,000			1,321,000
Home equity | Real estate
Loans
Total	117,768,000		151,775,000
Multi-family
Loans
Total	172,875,000			1,253,000
Multi-family | Real estate
Loans
Total	172,875,000		180,623,000
Residential mortgages
Loans
Total	96,271,000			678,000
Residential mortgages | Real estate
Loans
Total	96,271,000		100,759,000
Consumer and other
Loans
Total				$ 1,689,000
Consumer and other | Consumer
Loans
Total	33,445,000		33,744,000
Consumer
Loans
Total	$ 33,445,000
Consumer | Consumer
Loans
Total			$ 33,744,000

Allowance for Credit Losses _10

Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Loans
3/31/2020	$ 235,706
12/31/2019	450,442
12/31/2018	283,745
12/31/2017	281,314
12/31/2016	219,911
2015 and Prior	504,435
Revolving	578,616
Total loan balance	2,554,169		$ 2,534,163
Balance to report	2,509,208		2,510,559
Loan classified as loss
Loans
Balance to report	0		0
Commercial
Loans
3/31/2020	72,105
12/31/2019	69,863
12/31/2018	51,808
12/31/2017	30,824
12/31/2016	25,103
2015 and Prior	18,912
Revolving	413,665
Total loan balance	682,280	$ 6,790
Commercial | Pass [Member]
Loans
3/31/2020	64,965
12/31/2019	54,854
12/31/2018	37,330
12/31/2017	18,556
12/31/2016	12,307
2015 and Prior	11,754
Revolving	348,529
Total loan balance	548,295
Commercial | Watch [Member]
Loans
3/31/2020	4,115
12/31/2019	6,482
12/31/2018	8,093
12/31/2017	6,756
12/31/2016	3,861
2015 and Prior	6,461
Revolving	48,902
Total loan balance	84,670
Commercial | Special Mention [Member]
Loans
3/31/2020	2,370
12/31/2019	7,724
12/31/2018	5,419
12/31/2017	4,993
12/31/2016	5,763
2015 and Prior	537
Revolving	2,905
Total loan balance	29,711
Commercial | Substandard [Member]
Loans
3/31/2020	55
12/31/2019	368
12/31/2018	23
12/31/2017	519
12/31/2016	2,890
2015 and Prior	107
Revolving	13,034
Total loan balance	16,996
Commercial | Substandard-Nonaccrual [Member]
Loans
3/31/2020	600
12/31/2019	435
12/31/2018	943
12/31/2016	282
2015 and Prior	53
Revolving	295
Total loan balance	2,608
CRE - owner occupied
Loans
3/31/2020	36,781
12/31/2019	95,648
12/31/2018	83,504
12/31/2017	80,761
12/31/2016	59,349
2015 and Prior	170,517
Revolving	16,604
Total loan balance	543,164	6,994
CRE - owner occupied | Pass [Member]
Loans
3/31/2020	31,231
12/31/2019	87,203
12/31/2018	73,534
12/31/2017	66,267
12/31/2016	53,059
2015 and Prior	137,935
Revolving	16,604
Total loan balance	465,833
CRE - owner occupied | Watch [Member]
Loans
3/31/2020	5,216
12/31/2019	6,901
12/31/2018	9,735
12/31/2017	8,204
12/31/2016	5,020
2015 and Prior	20,652
Total loan balance	55,728
CRE - owner occupied | Special Mention [Member]
Loans
3/31/2020	334
12/31/2019	769
12/31/2018	235
12/31/2017	2,850
12/31/2016	550
2015 and Prior	4,377
Total loan balance	9,115
CRE - owner occupied | Substandard [Member]
Loans
12/31/2019	510
12/31/2017	3,440
12/31/2016	720
2015 and Prior	472
Total loan balance	5,142
CRE - owner occupied | Substandard-Nonaccrual [Member]
Loans
12/31/2019	265
2015 and Prior	7,081
Total loan balance	7,346
CRE - non-owner occupied
Loans
3/31/2020	57,046
12/31/2019	156,281
12/31/2018	91,615
12/31/2017	123,608
12/31/2016	76,239
2015 and Prior	246,642
Revolving	3,577
Total loan balance	755,008	11,672	$ 767,821
CRE - non-owner occupied | Pass [Member]
Loans
3/31/2020	57,046
12/31/2019	152,841
12/31/2018	90,155
12/31/2017	123,087
12/31/2016	69,165
2015 and Prior	237,623
Revolving	3,577
Total loan balance	733,494
CRE - non-owner occupied | Watch [Member]
Loans
12/31/2019	3,379
12/31/2018	1,460
12/31/2017	521
12/31/2016	7,074
2015 and Prior	6,657
Total loan balance	19,091
CRE - non-owner occupied | Special Mention [Member]
Loans
12/31/2019	61
2015 and Prior	1,373
Total loan balance	1,434
CRE - non-owner occupied | Substandard [Member]
Loans
2015 and Prior	989
Total loan balance	989
Land and construction
Loans
3/31/2020	58,098
12/31/2019	62,539
12/31/2018	28,182
12/31/2017	1,560
2015 and Prior	1,398
Revolving	1,581
Total loan balance	153,358	1,458
Land and construction | Pass [Member]
Loans
3/31/2020	44,780
12/31/2019	49,617
12/31/2018	28,182
12/31/2017	1,560
2015 and Prior	1,398
Revolving	1,581
Total loan balance	127,118
Land and construction | Watch [Member]
Loans
3/31/2020	7,613
12/31/2019	12,922
Total loan balance	20,535
Land and construction | Special Mention [Member]
Loans
3/31/2020	4,122
Total loan balance	4,122
Land and construction | Substandard [Member]
Loans
3/31/2020	1,583
Total loan balance	1,583
Home equity
Loans
12/31/2018	824
12/31/2017	281
2015 and Prior	272
Revolving	116,391
Total loan balance	117,768	1,321
Home equity | Pass [Member]
Loans
12/31/2018	824
Revolving	109,085
Total loan balance	109,909
Home equity | Watch [Member]
Loans
12/31/2017	281
Revolving	5,750
Total loan balance	6,031
Home equity | Special Mention [Member]
Loans
Revolving	100
Total loan balance	100
Home equity | Substandard [Member]
Loans
2015 and Prior	146
Revolving	1,456
Total loan balance	1,602
Home equity | Substandard-Nonaccrual [Member]
Loans
2015 and Prior	126
Total loan balance	126
Multi-family
Loans
3/31/2020	9,939
12/31/2019	49,914
12/31/2018	18,764
12/31/2017	30,969
12/31/2016	19,033
2015 and Prior	43,412
Revolving	844
Total loan balance	172,875	1,253
Multi-family | Pass [Member]
Loans
3/31/2020	9,939
12/31/2019	48,689
12/31/2018	18,764
12/31/2017	30,371
12/31/2016	18,187
2015 and Prior	43,011
Revolving	844
Total loan balance	169,805
Multi-family | Watch [Member]
Loans
12/31/2016	846
2015 and Prior	401
Total loan balance	1,247
Multi-family | Special Mention [Member]
Loans
12/31/2019	1,225
12/31/2017	598
Total loan balance	1,823
Residential mortgages
Loans
3/31/2020	1,722
12/31/2019	13,096
12/31/2018	5,893
12/31/2017	13,287
12/31/2016	40,042
2015 and Prior	22,231
Total loan balance	96,271	678
Residential mortgages | Pass [Member]
Loans
3/31/2020	1,722
12/31/2019	11,744
12/31/2018	4,205
12/31/2017	11,992
12/31/2016	37,569
2015 and Prior	19,047
Total loan balance	86,279
Residential mortgages | Watch [Member]
Loans
12/31/2019	439
12/31/2018	1,688
12/31/2016	1,912
2015 and Prior	1,846
Total loan balance	5,885
Residential mortgages | Special Mention [Member]
Loans
12/31/2019	691
12/31/2017	1,295
12/31/2016	561
2015 and Prior	1,069
Total loan balance	3,616
Residential mortgages | Substandard [Member]
Loans
12/31/2019	222
2015 and Prior	269
Total loan balance	491
Consumer and other
Loans
Total loan balance		$ 1,689
Consumer
Loans
3/31/2020	15
12/31/2019	3,101
12/31/2018	3,155
12/31/2017	24
12/31/2016	145
2015 and Prior	1,051
Revolving	25,954
Total loan balance	33,445
Consumer | Pass [Member]
Loans
3/31/2020	15
12/31/2019	2,980
12/31/2018	1,589
12/31/2017	24
12/31/2016	14
2015 and Prior	1,051
Revolving	24,941
Total loan balance	30,614
Consumer | Watch [Member]
Loans
12/31/2019	37
12/31/2016	131
Revolving	1,013
Total loan balance	1,181
Consumer | Special Mention [Member]
Loans
12/31/2019	84
Total loan balance	84
Consumer | Substandard-Nonaccrual [Member]
Loans
12/31/2018	1,566
Total loan balance	$ 1,566

Allowance for Credit Losses _11

Allowance for Credit Losses on Loans - Amortized Cost Basis of Collateral-dependant Loans (Details) $ in Thousands	Mar. 31, 2020USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 3,427
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	8,521
Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	1,600
Real Estate | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	6,694
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	575
Business Assets | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	575
Uncollateralized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	1,252
Uncollateralized | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	1,252
CRE | Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	5,094
CRE | Real Estate | Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 5,094

Allowance for Credit Losses _12

Allowance for Credit Losses on Loans - Allowance for credit losses and recorded investment in loans by loan classification and by impairment method (Details) $ in Thousands	Dec. 31, 2019USD ($)
Unpaid Principal Balance
Total with no related allowance recorded	$ 7,567
Total with an allowance recorded	2,697
Total	10,264
Recorded Investment
Total with no related allowance recorded	7,567
Total with an allowance recorded	2,697
Total	10,264
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,835
Commercial
Unpaid Principal Balance
Total with no related allowance recorded	2,113
Total with an allowance recorded	2,697
Recorded Investment
Total with no related allowance recorded	2,113
Total with an allowance recorded	2,697
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,835
Home equity
Unpaid Principal Balance
Total with no related allowance recorded	360
Recorded Investment
Total with no related allowance recorded	360
CRE
Unpaid Principal Balance
Total with no related allowance recorded	5,094
Recorded Investment
Total with no related allowance recorded	$ 5,094

Allowance for Credit Losses _13

Allowance for Credit Losses on Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Allowance for Credit Losses on Loans
Recorded investment of troubled debt restructurings	$ 1,015	$ 1,039
Troubled debt restructurings, nonaccrual loans	573	590
Troubled debt restructurings, accruing loans	442	449
Specific reserves	$ 12	$ 20

Allowance for Credit Losses _14

Allowance for Credit Losses on Loans - Troubled Debt Restructurings by Class (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)contract	Mar. 31, 2019loan
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period	3	0
Pre-modification Outstanding Recorded Investment	$ 13
Post-modification Outstanding Recorded Investment	$ 13
Commercial
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract	3
Pre-modification Outstanding Recorded Investment	$ 13
Post-modification Outstanding Recorded Investment	$ 13

Allowance for Credit Losses _15

Allowance for Credit Losses on Loans - Defaults on Troubled Debt Restructurings (Details)	3 Months Ended
	Mar. 31, 2020contractloanitem	Mar. 31, 2019loanitem
Allowance for Credit Losses on Loans
Number of troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven | loan	0
Number of loans modified as troubled debt restructurings during the period	3	0
Default period contractually past due under modified terms (in days)	30 days
Number of defaults on troubled debt restructurings | item	0	0
Period of consecutive payments (in months)	6 months

Allowance for Credit Losses _16

Allowance for Credit Losses on Loans - Narrative (Details) $ in Thousands	Apr. 23, 2020USD ($)	Mar. 22, 2020	Mar. 31, 2020USD ($)	Apr. 27, 2020USD ($)item	Dec. 31, 2019USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Total fund approved by Congress to Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”)			$ 349,000,000
Loans, net			$ 2,509,208		$ 2,510,559
Subsequent Event
Loans and Leases Receivable Disclosure [Line Items]
Additional fund approved by Congress to Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”)	$ 310,000,000
Paycheck Protection Program
Loans and Leases Receivable Disclosure [Line Items]
Number of application processed | item				1,060
Loans, net				$ 330,000
Number of request received for initial payment deferral | item				319
Initial payment deferral requested loan amount				$ 170,000
Initial payment deferral requested loan percentage				7.00%
Paycheck Protection Program | Commercial | Real estate
Loans and Leases Receivable Disclosure [Line Items]
Initial payment deferral requested loan amount				$ 54,000
Paycheck Protection Program | Dentist and physician | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Initial payment deferral requested loan amount				$ 35,000
Paycheck Protection Program | Maximum
Loans and Leases Receivable Disclosure [Line Items]
Initial payment deferral period		90 days
Initial payment additional deferral period		90 days

Business Combinations - Tri-Val

Business Combinations - Tri-Valley (Details) $ in Thousands	Oct. 11, 2019USD ($)shares
Business Combinations
Aggregate transaction value	$ 185,598
Shares issued in acquisition | shares	15,684,064
Issuance of 1,889,613 shares of common stock to Tri-Valley shareholders at $16.26 per share at Closing	$ 178,171
Total cash paid	$ 1

Business Combinations - United

Business Combinations - United American (Details) - USD ($) $ in Thousands	Oct. 11, 2019	Mar. 31, 2020
Business Combinations
Aggregate transaction value	$ 185,598
Shares issued in acquisition	15,684,064
Total cash paid	$ 1
Issuance of shares of common stock to holders of restricted stock	$ 178,171
Tax refund		$ 159

Business combinations - Presidi

Business combinations - Presidio (Details)	Oct. 11, 2019USD ($)$ / sharesshares	Oct. 31, 2019	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 31, 2019USD ($)
Liabilities assumed:
Subordinate debt			$ 39,600,000	$ 39,554,000
Goodwill recorded in the merger			167,371,000	$ 167,420,000	$ 83,753,000
Aggregate transaction value	$ 185,598,000
Issuance of shares of common stock to Presidio shareholders | shares	15,684,064
Issuance of shares of common stock to holders of restricted stock	$ 178,171,000
Stock price at Closing (in dollars per share) | $ / shares	$ 11.36
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options	$ 7,426,000
Cash paid for fractional shares	1,000
Presidio bank
Assets acquired:
Cash and cash equivalents	117,988,000
Securities available-for-sale	45,069,000
Securities held-to-maturity	463,000
Loans	685,964,000
Premises and equipment	1,756,000
Other intangible assets	11,147,000
Other assets, net	42,161,000
Total assets acquired	904,548,000
Liabilities assumed:
Deposits	774,259,000
Subordinate debt	10,000,000
Other borrowings	442,000
Other liabilities	17,867,000
Total liabilities assumed	802,568,000
Net assets acquired	101,980,000
Purchase price	185,598,000
Goodwill recorded in the merger	83,618,000
Aggregate transaction value	$ 185,598,000
Fixed exchange ratio	2.47
Issuance of shares of common stock to Presidio shareholders | shares	15,684,064
Issuance of shares of common stock to holders of restricted stock	$ 178,171,000
Stock price at Closing (in dollars per share) | $ / shares	$ 11.36
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options	$ 7,426,000		$ 7,426,000
Cash paid for fractional shares	1,000
Amortized intangible assets		60 months
Presidio bank | Below or Above market-value lease
Liabilities assumed:
Amortized intangible assets		60 months	5 years
Previously Reported | Presidio bank
Assets acquired:
Cash and cash equivalents	117,989,000
Securities available-for-sale	44,647,000
Securities held-to-maturity	463,000
Loans	698,493,000
Allowance for loan losses	(7,463,000)
Premises and equipment	1,756,000
Other assets, net	43,539,000
Total assets acquired	899,424,000
Liabilities assumed:
Deposits	774,260,000
Subordinate debt	10,000,000
Other borrowings	442,000
Other liabilities	17,916,000
Total liabilities assumed	802,618,000
Fair Value Adjustments | Presidio bank
Assets acquired:
Cash and cash equivalents	(1,000)
Securities available-for-sale	422,000
Loans	(12,529,000)
Allowance for loan losses	7,463,000
Other intangible assets	11,147,000
Other assets, net	(1,378,000)
Total assets acquired	5,124,000
Liabilities assumed:
Deposits	(1,000)
Other liabilities	(49,000)
Total liabilities assumed	$ (50,000)

Business combinations - Pro for

Business combinations - Pro forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Pro Forma Information
Diluted (in dollars per share)	$ 0.03	$ 0.28
Net interest income	$ 38,580	$ 31,042
Provision (credit) for credit losses on loans(1)	13,270	(1,061)
Noninterest income	3,193	2,468
Noninterest expense	25,774	17,918
Income before income taxes	2,729	16,653
Income tax expense	868	4,507
Net income	$ 1,861	$ 12,146
Basic (in dollars per share)	$ 0.03	$ 0.28
Presidio bank
Pro Forma Information
Net interest income		$ 41,177
Provision (credit) for loan losses		(1,037)
Noninterest income		2,779
Noninterest expense		23,961
Income before income taxes		21,032
Income tax expense		5,677
Net income		$ 15,355
Basic (in dollars per share)		$ 0.26
Diluted (in dollars per share)		$ 0.26

Business Combinations (Details)

Business Combinations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)loan	Oct. 11, 2019USD ($)	Mar. 31, 2019USD ($)
Combined business value after business combination	$ 4,100,000
Other merger-related costs	2,068
Salaries and employee benefits merger-related costs	356
Pre-tax acquisition costs	$ 2,424
Number of loan classified as PCI loan | loan	0	0
Goodwill	$ 167,371	$ 167,420		$ 83,753
Presidio bank
Goodwill			$ 83,618
Decrease in goodwill	$ 49

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Oct. 11, 2019	Mar. 31, 2019
Goodwill
Goodwill	$ 167,371	$ 167,420		$ 83,753
BVF/CSNK
Goodwill
Goodwill acquired	13,044
Focus
Goodwill
Goodwill acquired	32,619
Tri Valley Bank
Goodwill
Goodwill acquired	13,819
United American Bank
Goodwill
Goodwill acquired	24,271
Presidio bank
Goodwill
Goodwill			$ 83,618
Goodwill acquired	83,618,000
Banking
Goodwill
Goodwill	154,327			70,709
Factoring
Goodwill
Goodwill	$ 13,044			$ 13,044

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands

1 Months Ended

3 Months Ended

Oct. 31, 2019

May 31, 2018

Apr. 30, 2018

Aug. 31, 2015

Nov. 30, 2014

Mar. 31, 2020

Dec. 31, 2019

Oct. 11, 2019

May 04, 2018

Apr. 06, 2018

Aug. 20, 2015

Nov. 01, 2014

United American Bank

Other Intangible Assets

Accumulated amortization

$ 2,019

$ 1,778

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

$ 537

480

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

Presidio bank

Other Intangible Assets

Accumulated amortization

$ 870

524

Useful life, amortization period

60 months

Presidio bank | Core deposit

Other Intangible Assets

Intangible assets acquired

$ 11,247

Useful life, amortization period

10 years

Presidio bank | Below or Above market-value lease

Other Intangible Assets

Accumulated amortization

$ (100)

Useful life, amortization period

60 months

5 years

Focus

Other Intangible Assets

Accumulated amortization

$ 3,683

3,504

Focus | Core deposit

Other Intangible Assets

Intangible assets acquired

$ 6,285

Useful life, amortization period

10 years

BVF/CSNK

Other Intangible Assets

Accumulated amortization

$ 1,028

$ 981

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) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Estimated Amortization Expense
2020	$ 2,874
2021	3,017
2022	2,635
2023	2,405
2024	2,186
2025	1,811
Thereafter	4,629
Total	19,557	$ 20,415
United American Bank | Core deposit
Estimated Amortization Expense
2020	499
2021	602
2022	553
2023	521
2024	499
2025	478
Thereafter	1,042
Total	4,194
United American Bank | Below market-value lease
Estimated Amortization Expense
2020	171
Total	171
Tri Valley Bank | Core deposit
Estimated Amortization Expense
2020	156
2021	184
2022	167
2023	158
2024	152
2025	145
Thereafter	306
Total	1,268
Tri Valley Bank | Below market-value lease
Estimated Amortization Expense
2020	13
2021	18
2022	18
2023	18
2024	18
2025	18
Thereafter	70
Total	173
Presidio bank | Core deposit
Estimated Amortization Expense
2020	1,369
2021	1,447
2022	1,225
2023	1,118
2024	1,026
2025	970
Thereafter	3,211
Total	10,366
Presidio bank | Below or Above market-value lease
Estimated Amortization Expense
2020	(14)
2021	(20)
2022	(20)
2023	(20)
2024	(14)
Total	(88)
Focus | Core deposit
Estimated Amortization Expense
2020	538
2021	596
2022	502
2023	420
2024	346
2025	200
Total	2,602
BVF/CSNK | Customer relationship and brokered relationship
Estimated Amortization Expense
2020	142
2021	190
2022	190
2023	190
2024	159
Total	$ 871

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Impairment of Intangible Assets
Impairment of intangible assets	$ 0	$ 0

Income Taxes - Net Deferred Tax

Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Net deferred tax assets
Net deferred tax assets	$ 27,747	$ 24,302
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	Mar. 31, 2020	Dec. 31, 2019
Income Taxes
Low income housing investments	$ 5,878	$ 6,126
Future commitments	$ 625	$ 625

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Taxes
Low income housing tax credits	$ 210,000	$ 106,000
Low income housing investment expense	$ 211,000	$ 109,000

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments $ in Thousands	Mar. 31, 2020USD ($)
Future Commitments
2020	$ 28
2021 through 2023	$ 597

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 123	$ 55
Interest cost	231	264
Amortization of net actuarial loss	85	46
Net periodic benefit cost	439	365
Plan assets associated with the plan	0
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Interest cost	62	70	$ 278
Amortization of prior transition obligation	(15)	(25)
Net periodic benefit cost	$ 47	$ 45

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Split-Dollar Life Insurance Benefit Plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 8,198	$ 6,903	$ 6,903
Interest cost	62	70	278
Actuarial loss (gain)			1,017
Projected benefit obligation at end of period	8,260		$ 8,198
Supplemental Retirement Plan
Change in projected benefit obligation:
Interest cost	$ 231	$ 264

Benefit Plans - Defined Benef_3

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 3,813	$ 3,776
Prior transition obligation	1,037	1,059
Accumulated other comprehensive loss	$ 4,850	$ 4,835

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 373,570	$ 404,825
I/O strip receivables	458	503
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	251,836	284,361
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	121,734	120,464
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	121,734	120,464
Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	458	503
Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	251,836	284,361
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 - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details)	Mar. 31, 2020USD ($)
Carrying amount
Impaired Loans Held-for-investment
Foreclosed assets	$ 0

Fair Value - Carrying Amounts a

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Securities available-for-sale	$ 373,570	$ 404,825
Securities held-to-maturity	356,153	368,107
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	33,339	29,842
I/O strips receivables	458	503
Liabilities
Subordinated Debt.	39,600	39,554
Significant Other Observable Inputs (Level 2)
Assets
I/O strips receivables	458	503
Carrying amount
Assets
Cash and cash equivalents	443,397	457,370
Securities available-for-sale	373,570	404,825
Securities held-to-maturity	348,044	366,560
Loans (including loans held-for-sale), net	2,511,623	2,511,611
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	33,339	29,842
Accrued interest receivable	10,231	10,915
I/O strips receivables	458	503
Liabilities
Time deposits	150,238	168,034
Other deposits	3,216,401	3,246,734
Subordinated Debt.	39,600	39,554
Accrued interest payable	1,198	707
Carried at fair value
Assets
Cash and cash equivalents	443,397	457,370
Securities available-for-sale	373,570	404,825
Securities held-to-maturity	356,153	368,107
Loans (including loans held-for-sale), net	2,497,076	2,513,329
Accrued interest receivable	10,231	10,915
I/O strips receivables	458	503
Liabilities
Time deposits	150,728	158,704
Other deposits	3,216,401	3,246,734
Subordinated Debt.	38,100	40,404
Accrued interest payable	1,198	707
Carried at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	443,397	457,370
Securities available-for-sale	121,734	120,464
Accrued interest receivable	616	446
Carried at fair value | Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	251,836	284,361
Securities held-to-maturity	356,153	368,107
Loans (including loans held-for-sale), net	2,415	1,052
Accrued interest receivable	1,997	2,218
I/O strips receivables	458	503
Liabilities
Time deposits	150,728	158,704
Other deposits	3,216,401	3,246,734
Subordinated Debt.	38,100	40,404
Accrued interest payable	1,198	707
Carried at fair value | Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	2,494,661	2,512,277
Accrued interest receivable	$ 7,618	$ 8,251

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - USD ($)	Oct. 11, 2019	Mar. 31, 2020	Dec. 31, 2019	May 25, 2017	May 24, 2017
Equity Plan
Number of shares available for future grants		803,739
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options	$ 7,426,000
Presidio bank
Equity Plan
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options	$ 7,426,000	$ 7,426,000
2013 Plan
Equity Plan
Number of shares authorized for equity plan				3,000,000	1,750,000
Options
Equity Plan
Vesting period		4 years
Expiration term		10 years
Heritage Commerce Corp stock options		2,505,523	2,712,846
Options | Presidio bank
Equity Plan
Heritage Commerce Corp stock options		1,176,757
Restricted stock
Equity Plan
Number of equity awards issued (in shares)		0
Nonqualified stock options
Equity Plan
Number of equity awards issued (in shares)		25,000

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2020
Number of Shares
Outstanding at the beginning of the period (in shares)	2,712,846
Granted (in shares)	25,000
Heritage Commerce Corp stock options	2,505,523	2,505,523
Exercised (in shares)	(200,063)
Forfeited or expired (in shares)	(32,260)
Outstanding at the end of the period (in shares)	2,505,523
Vested or expected to vest (in shares)		2,355,192
Exercisable at the end of the period (in shares)		2,047,781
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 8.80
Granted (in dollars per share)	11.58
Heritage Commerce Corp stock options	9.03	$ 9.03
Exercised (in dollars per share)	5.53
Forfeited or expired (in dollars per share)	13.80
Outstanding at the end of the period (in dollars per share)	$ 9.03
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 5 months 9 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 5 months 9 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 9 months
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars)		$ 3,087,857
Aggregate Intrinsic Value - Vested or expected to vest (in dollars)		2,902,585
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars)		$ 3,087,857
Presidio bank
Number of Shares
Heritage Commerce Corp stock options	1,176,757	1,176,757
Outstanding at the end of the period (in shares)	1,176,757

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Information Related to the Equity Plans
Cash received from option exercise	$ 1,106	$ 269
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	1,346,186	197,994
Cash received from option exercise	1,105,991	268,691
Tax benefit realized from option exercises	$ 14,471	$ 26,578
Weighted average fair value of options granted (in dollars per share)	$ 1.59	$ 3.24

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Stock Options (Details) - Options $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 987
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 6 months 22 days

Equity Plan - Assumptions Used

Equity Plan - Assumptions Used to Estimate Fair Value (Details) - Options	3 Months Ended
	Mar. 31, 2020
Assumptions Used to Estimate Fair Value
Expected life in months	72 months
Volatility (as a percent)	24.00%
Weighted average risk-free interest rate (as a percent)	1.52%
Expected dividends (as a percent)	4.49%

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	Mar. 31, 2020$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) | shares	239,453
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	$ 11.23
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	3 Months Ended
	Mar. 31, 2020USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 1,993
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	1 year 11 months 12 days

Subordinate Debt (Details)

Subordinate Debt (Details) - USD ($)	May 26, 2017	Dec. 31, 2019	Mar. 31, 2020	Dec. 19, 2019	Oct. 11, 2019
Debt Instrument [Line Items]
Principal amount	$ 40,000,000
Debt Issuance Costs			$ 400,000
Fixed interest rate (as a percent)	5.25%
Subordinate debt		$ 39,554,000	$ 39,600,000
LIBOR
Debt Instrument [Line Items]
Rate of interest added to base rate	336.50%
Presidio bank
Debt Instrument [Line Items]
Fixed interest rate (as a percent)				8.00%
Subordinate debt					$ 10,000,000
Pre-payment penalty		$ 300,000

Capital Requirements - General

Capital Requirements - General Information (Details)	Mar. 27, 2020	Mar. 31, 2020	Dec. 31, 2019
Capital Requirements
Period to delay the estimated impact of the adoption of the CECL Standard to regulatory capital as the company elected the option	2 years
Addition period for transition	3 years
Capital conservation buffer (as a percent)			2.50%
HBC (Wholly-owned Subsidiary)
Capital Requirements
Capital conservation buffer (as a percent)		2.50%	2.50%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total Capital (to risk-weighted assets)
Actual, Amount	$ 468,876	$ 457,158
Required For Capital Adequacy Purposes, Amount	$ 331,450	$ 329,306
Actual, Ratio (as a percent)	14.90%	14.60%
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.50%	10.50%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 389,796	$ 393,432
Required For Capital Adequacy Purposes, Amount	$ 268,317	$ 266,581
Actual, Ratio (as a percent)	12.30%	12.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.50%	8.50%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 389,796	$ 393,432
Required For Capital Adequacy Purposes, Amount	$ 220,967	$ 219,538
Actual, Ratio (as a percent)	12.30%	12.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	7.00%
Tier 1 Capital (to average assets)
Actual, Amount	$ 389,796	$ 393,432
Required For Capital Adequacy Purposes, Amount	$ 153,703	$ 161,677
Actual, Ratio (as a percent)	10.10%	9.70%
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	$ 444,676	$ 435,757
To Be Well Capitalized Under Regulatory Requirements, Amount	315,256	313,485
Required For Capital Adequacy Purposes, Amount	$ 331,018	$ 329,159
Actual, Ratio (as a percent)	14.10%	13.90%
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%	10.50%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 405,247	$ 411,585
To Be Well Capitalized Under Regulatory Requirements, Amount	252,204	250,788
Required For Capital Adequacy Purposes, Amount	$ 267,967	$ 266,462
Actual, Ratio (as a percent)	12.90%	13.10%
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%	8.50%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 405,247	$ 411,585
To Be Well Capitalized Under Regulatory Requirements, Amount	204,916	203,765
Required For Capital Adequacy Purposes, Amount	$ 220,679	$ 219,439
Actual, Ratio (as a percent)	12.90%	13.10%
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%	7.00%
Tier 1 Capital (to average assets)
Actual, Amount	$ 405,247	$ 411,585
To Be Well Capitalized Under Regulatory Requirements, Amount	191,927	202,013
Required For Capital Adequacy Purposes, Amount	$ 153,542	$ 161,611
Actual, Ratio (as a percent)	10.60%	10.20%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	5.00%	5.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	4.00%	4.00%

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Aug. 27, 2019	Aug. 26, 2019
Cash dividend
Common stock, shares authorized	100,000,000	100,000,000	100,000,000	60,000,000
Subordinated Debt.	$ 39,600	$ 39,554
HBC (Wholly-owned Subsidiary)
Cash dividend
Cash dividend available	45,996
Dividends paid to parent company	$ 8,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 1,760	$ 1,161
Non-interest Income Out-of-scope of Topic 606	1,433	1,307
Total noninterest income	3,193	2,468
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	969	$ 1,161
Gain on the disposition of foreclosed assets [Member]
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 791

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Noninterest Expense
Salaries and employee benefits	$ 14,203	$ 10,770
Occupancy and equipment	1,772	1,506
Professional fees	1,435	818
Data processing	976	679
Software subscriptions	889	589
Amortization of intangible assets	858	553
Insurance expense	518	436
Other	5,123	2,567
Total noninterest expense, excluding merger-related costs	25,774	17,918
Salaries and employee benefits merger-related costs	356
Other merger-related costs	2,068
Pre-tax acquisition costs	2,424
Total noninterest expense	$ 25,774	$ 17,918

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019ft²
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Option to renew	true
Operating Lease Cost (Cost resulting from lease payments)	$ 1,769
Operating Lease - Operating Cash Flows (Fixed Payments)	1,190
Operating Lease - ROU assets	38,098
Operating Lease - Liabilities	$ 38,098
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Operating Lease - Liabilities
Weighted Average Lease Term - Operating Leases	8 years 7 months 21 days
Weighted Average Discount Rate - Operating Leases	4.52%
Area of office space | ft²			54,910
Wallnut creek
Lessee, Lease, Description [Line Items]
Lease impairment and write-off of fixed assets and tenant improvements		$ 434
San Mateo
Lessee, Lease, Description [Line Items]
Lease impairment and write-off of fixed assets and tenant improvements		$ 625

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) $ in Thousands	Mar. 31, 2020USD ($)
Operating Lease Payments Due
2020	$ 4,420
2021	5,029
2022	5,448
2023	4,812
2024	4,575
Thereafter	22,663
Total undiscounted cash flows	46,947
Discount on cash flows	(8,849)
Total lease liability	$ 38,098

Business Segment Information -

Business Segment Information - Business Segments (Details)	3 Months Ended
	Mar. 31, 2020segmentitem
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
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Operating Income
Interest income	$ 40,942	$ 33,449
Total interest expense	2,362	2,407
Net interest income	38,580	31,042
Provision (credit) for credit losses on loans(1)	13,270	(1,061)
Net interest income after provision	25,310	32,103
Noninterest income	3,193	2,468
Noninterest expense	25,774	17,918
Income before income taxes	2,729	16,653
Income tax expense	868	4,507
Net income	1,861	12,146
Total assets	4,078,162	3,115,877	$ 4,109,463
Loans, net of deferred fees	2,553,911	1,848,318	2,533,844
Goodwill	167,371	83,753	$ 167,420
Business Combination, Acquisition Related Costs	2,424
Pre-tax acquisition costs	2,424
Banking
Operating Income
Interest income	38,065	30,496
Intersegment interest allocations	284	314
Total interest expense	2,362	2,407
Net interest income	35,987	28,403
Provision (credit) for credit losses on loans(1)	12,874	(892)
Net interest income after provision	23,113	29,295
Noninterest income	3,023	2,232
Noninterest expense	24,183	16,201
Intersegment expense allocations	129	121
Income before income taxes	2,082	15,447
Income tax expense	677	4,151
Net income	1,405	11,296
Total assets	4,009,344	3,053,116
Loans, net of deferred fees	2,499,837	1,800,064
Goodwill	154,327	70,709
Factoring
Operating Income
Interest income	2,877	2,953
Intersegment interest allocations	(284)	(314)
Net interest income	2,593	2,639
Provision (credit) for credit losses on loans(1)	396	(169)
Net interest income after provision	2,197	2,808
Noninterest income	170	236
Noninterest expense	1,591	1,717
Intersegment expense allocations	(129)	(121)
Income before income taxes	647	1,206
Income tax expense	191	356
Net income	456	850
Total assets	68,818	62,761
Loans, net of deferred fees	54,074	48,254
Goodwill	$ 13,044	$ 13,044

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Apr. 23, 2020	Mar. 31, 2020	Mar. 31, 2019
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 0.13	$ 0.12
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.13