Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | PACIFIC MERCANTILE BANCORP | |
Entity Central Index Key | 0001109546 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 22,051,371 | |
Nonvoting Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,467,155 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 17,561 | $ 13,250 |
Interest bearing deposits with financial institutions | 247,680 | 174,468 |
Cash and cash equivalents | 265,241 | 187,718 |
Interest-bearing time deposits with financial institutions | 2,420 | 2,420 |
Federal Reserve Bank of San Francisco and Federal Home Loan Bank Stock, at cost | 7,910 | 8,822 |
Securities available for sale, at fair value | 28,393 | 31,231 |
Loans (net of allowances of $11,474 and $13,506, respectively) | 1,077,595 | 1,083,240 |
Other real estate owned | 0 | 1,173 |
Accrued interest receivable | 4,365 | 4,003 |
Premises and equipment, net | 922 | 1,039 |
Net deferred tax assets | 8,795 | 10,935 |
Other assets | 23,476 | 18,757 |
Total assets | 1,419,117 | 1,349,338 |
Deposits: | ||
Noninterest-bearing | 378,063 | 340,406 |
Interest-bearing | 821,567 | 795,596 |
Total deposits | 1,199,630 | 1,136,002 |
Borrowings | 40,000 | 40,000 |
Accrued interest payable | 497 | 361 |
Other liabilities | 15,547 | 14,074 |
Junior subordinated debentures | 17,527 | 17,527 |
Total liabilities | 1,273,201 | 1,207,964 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Series A Non-Voting Preferred Stock, no par value, 0 and 1,467,155 shares authorized at June 30, 2019 and December 31, 2018, respectively; 0 and 1,467,155 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 0 | 8,480 |
Common stock, no par value, 85,000,000 shares of common stock and 2,000,000 shares of non-voting common stock authorized; 23,514,870 and 21,916,195 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 152,445 | 143,466 |
Accumulated deficit | (6,025) | (9,428) |
Accumulated other comprehensive loss | (504) | (1,144) |
Total shareholders’ equity | 145,916 | 141,374 |
Total liabilities and shareholders’ equity | $ 1,419,117 | $ 1,349,338 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans, allowances | $ 11,474 | $ 13,506 |
Preferred stock, shares authorized (in shares) | 2,000,000 | |
Common stock, shares issued (in shares) | 23,514,870 | 21,916,195 |
Common stock, shares outstanding (in shares) | 23,514,870 | 21,916,195 |
Series A Preferred Stock | ||
Preferred stock, shares authorized (in shares) | 0 | 1,467,155 |
Preferred stock, shares issued (in shares) | 0 | 1,467,155 |
Preferred stock, shares outstanding (in shares) | 0 | 1,467,155 |
Common Stock | ||
Common stock, shares authorized (in shares) | 85,000,000 | 85,000,000 |
Nonvoting Common Stock | ||
Common stock, shares authorized (in shares) | 2,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Loans, including fees | $ 14,586 | $ 14,788 | $ 29,106 | $ 28,833 |
Securities available for sale and stock | 260 | 262 | 551 | 536 |
Interest-bearing deposits with financial institutions | 1,620 | 864 | 2,975 | 1,560 |
Total interest income | 16,466 | 15,914 | 32,632 | 30,929 |
Interest expense: | ||||
Deposits | 3,753 | 3,082 | 7,377 | 5,560 |
Borrowings | 494 | 385 | 985 | 737 |
Total interest expense | 4,247 | 3,467 | 8,362 | 6,297 |
Net interest income | 12,219 | 12,447 | 24,270 | 24,632 |
Provision for loan and lease losses | 0 | 0 | 3,300 | 0 |
Net interest income after provision for loan and lease losses | 12,219 | 12,447 | 20,970 | 24,632 |
Noninterest income | ||||
Service fees on deposits and other banking services | 443 | 407 | 840 | 794 |
Net gain on sale of securities available for sale | 0 | 0 | 0 | 48 |
Net gain on sale of Small Business Administration loans | 300 | 0 | 600 | 0 |
Net loss on sale of other assets | (11) | 0 | (36) | (4) |
Other noninterest income | 654 | 729 | 1,472 | 1,353 |
Total noninterest income | 1,386 | 1,136 | 2,876 | 2,191 |
Noninterest expense | ||||
Salaries and employee benefits | 5,737 | 5,916 | 11,177 | 12,076 |
Occupancy | 647 | 590 | 1,274 | 1,208 |
Equipment and depreciation | 480 | 457 | 941 | 903 |
Data processing | 526 | 380 | 1,044 | 772 |
FDIC expense | 193 | 266 | 357 | 548 |
Other real estate owned expense, net | 1 | 8 | 69 | 8 |
Professional fees | 1,190 | 636 | 1,986 | 1,386 |
Business development | 241 | 315 | 437 | 499 |
Loan related expense | 122 | 183 | 307 | 353 |
Insurance | 61 | 62 | 123 | 125 |
Other operating expense | 509 | 486 | 976 | 954 |
Total noninterest expense | 9,707 | 9,299 | 18,691 | 18,832 |
Income before income taxes | 3,898 | 4,284 | 5,155 | 7,991 |
Income tax provision (benefit) | 1,170 | (11,085) | 1,545 | (11,085) |
Net income allocable to common shareholders | $ 2,728 | $ 15,369 | $ 3,610 | $ 19,076 |
Basic income per common share: | ||||
Net income allocable to common shareholders (in dollars per share) | $ 0.12 | $ 0.66 | $ 0.15 | $ 0.82 |
Diluted income per common share: | ||||
Net income allocable to common shareholders (in dollars per share) | $ 0.12 | $ 0.65 | $ 0.15 | $ 0.81 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 22,619,993 | 23,213,382 | 22,224,376 | 23,184,877 |
Diluted (in shares) | 23,615,958 | 23,557,516 | 23,581,106 | 23,502,403 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,728 | $ 15,369 | $ 3,610 | $ 19,076 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized holding gain (loss) on securities available for sale | 273 | (41) | 640 | (388) |
Less: Reclassification adjustment for change in accounting principle | 0 | 0 | 0 | (97) |
Less: Reclassification adjustment for net gains included in net income | 0 | 0 | 0 | 48 |
Net unrealized holding gain (loss) on securities available for sale | 273 | (41) | 640 | (339) |
Total comprehensive income | $ 3,001 | $ 15,328 | $ 4,250 | $ 18,737 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Series A Non-Voting Preferred stock | Common stock | Retained earnings (accumulated deficit) | Accumulated other comprehensive income (loss) | Nonvoting Common Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Implementation of ASU | $ (97) | $ (97) | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 0 | 23,233,000 | ||||
Beginning balance at Dec. 31, 2017 | 112,876 | $ 0 | $ 150,689 | (36,670) | $ (1,143) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of restricted stock, net (in shares) | 72,000 | |||||
Common stock based compensation expense | 179 | $ 179 | ||||
Common stock options exercised (in shares) | 8,000 | |||||
Common stock options exercised | 28 | $ 28 | ||||
Net income | 3,707 | 3,707 | ||||
Other comprehensive income | (298) | (298) | ||||
Ending balance (in shares) at Mar. 31, 2018 | 0 | 23,313,000 | ||||
Ending balance at Mar. 31, 2018 | 116,395 | $ 0 | $ 150,896 | (33,060) | (1,441) | |
Beginning balance (in shares) at Dec. 31, 2017 | 0 | 23,233,000 | ||||
Beginning balance at Dec. 31, 2017 | $ 112,876 | $ 0 | $ 150,689 | (36,670) | (1,143) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock options exercised (in shares) | 75,108 | |||||
Net income | $ 19,076 | |||||
Ending balance (in shares) at Jun. 30, 2018 | 0 | 23,378,000 | ||||
Ending balance at Jun. 30, 2018 | 132,305 | $ 0 | $ 151,478 | (17,691) | (1,482) | |
Beginning balance (in shares) at Dec. 31, 2017 | 0 | 23,233,000 | ||||
Beginning balance at Dec. 31, 2017 | 112,876 | $ 0 | $ 150,689 | (36,670) | (1,143) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | (1) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 1,467,000 | 21,916,000 | ||||
Ending balance at Dec. 31, 2018 | 141,374 | $ 8,480 | $ 143,466 | (9,428) | (1,144) | |
Beginning balance (in shares) at Mar. 31, 2018 | 0 | 23,313,000 | ||||
Beginning balance at Mar. 31, 2018 | 116,395 | $ 0 | $ 150,896 | (33,060) | (1,441) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of restricted stock, net (in shares) | (2,000) | |||||
Common stock based compensation expense | $ 237 | $ 237 | ||||
Common stock options exercised (in shares) | 37,108 | 67,000 | ||||
Common stock options exercised | $ 345 | $ 345 | ||||
Net income | 15,369 | 15,369 | ||||
Other comprehensive income | (41) | (41) | ||||
Ending balance (in shares) at Jun. 30, 2018 | 0 | 23,378,000 | ||||
Ending balance at Jun. 30, 2018 | 132,305 | $ 0 | $ 151,478 | (17,691) | (1,482) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Implementation of ASU | (207) | (207) | ||||
Beginning balance (in shares) at Dec. 31, 2018 | 1,467,000 | 21,916,000 | ||||
Beginning balance at Dec. 31, 2018 | 141,374 | $ 8,480 | $ 143,466 | (9,428) | (1,144) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of restricted stock, net (in shares) | 102,000 | |||||
Common stock based compensation expense | 200 | $ 200 | ||||
Net income | 882 | 882 | ||||
Other comprehensive income | 367 | 367 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 1,467,000 | 22,018,000 | ||||
Ending balance at Mar. 31, 2019 | 142,616 | $ 8,480 | $ 143,666 | (8,753) | (777) | |
Beginning balance (in shares) at Dec. 31, 2018 | 1,467,000 | 21,916,000 | ||||
Beginning balance at Dec. 31, 2018 | $ 141,374 | $ 8,480 | $ 143,466 | (9,428) | (1,144) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock options exercised (in shares) | 15,000 | |||||
Net income | $ 3,610 | |||||
Other comprehensive income | 640 | |||||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 23,515,000 | ||||
Ending balance at Jun. 30, 2019 | 145,916 | $ 0 | $ 152,445 | (6,025) | (504) | |
Beginning balance (in shares) at Mar. 31, 2019 | 1,467,000 | 22,018,000 | ||||
Beginning balance at Mar. 31, 2019 | 142,616 | $ 8,480 | $ 143,666 | (8,753) | (777) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of restricted stock, net (in shares) | 15,000 | |||||
Exchange Series A Non-Voting Preferred Stock to Series A Non-Voting Common Stock (in shares) | (1,467,000) | 1,467,000 | ||||
Exchange Series A Non-Voting Preferred Stock to Series A Non-Voting Common Stock | 0 | $ (8,480) | $ 8,480 | |||
Common stock based compensation expense | $ 219 | $ 219 | ||||
Common stock options exercised (in shares) | 15,000 | 15,000 | ||||
Common stock options exercised | $ 80 | $ 80 | ||||
Net income | 2,728 | 2,728 | ||||
Other comprehensive income | 273 | 273 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 23,515,000 | ||||
Ending balance at Jun. 30, 2019 | $ 145,916 | $ 0 | $ 152,445 | $ (6,025) | $ (504) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 3,610 | $ 19,076 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 213 | 193 |
Provision for loan and lease losses | 3,300 | 0 |
Amortization of premium on securities | 77 | 96 |
Net (gain) loss on sale of securities available for sale | 0 | (48) |
Net amortization of deferred fees and unearned income on loans | 320 | (11) |
Net loss (gain) on sales of other real estate owned | 66 | 0 |
Net loss on sale of other assets | 36 | 4 |
Net gain on sale of small business administration loans | (600) | 0 |
Small business administration loan originations | (7,139) | 0 |
Proceeds from sale of small business administration loans | 7,800 | 0 |
Stock-based compensation expense | 419 | 416 |
Other | 0 | 59 |
Changes in operating assets and liabilities: | ||
Net (increase) decrease in accrued interest receivable | (362) | (194) |
Net decrease in other assets | 5,675 | 1,134 |
Net (increase) decrease in deferred taxes | 1,872 | (11,085) |
Net decrease (increase) in income taxes receivable | 390 | (53) |
Net increase in accrued interest payable | 136 | 15 |
Net decrease in other liabilities | (8,653) | (1,718) |
Net cash provided by operating activities | 7,160 | 7,884 |
Cash Flows From Investing Activities: | ||
Net decrease in interest-bearing time deposits with financial institutions | 0 | 500 |
Maturities of and principal payments received on securities available for sale and other stock | 3,669 | 3,125 |
Purchase of securities available for sale and other stock | 0 | (655) |
Proceeds from sale of securities available for sale and other stock | 912 | 6,883 |
Purchase of other investments | (877) | (141) |
Proceeds from sale of other real estate owned | 1,107 | 0 |
Net decrease in loans | 1,885 | 1,997 |
Purchases of premises and equipment | (96) | (283) |
Proceeds from sale of other assets | 55 | 32 |
Net cash provided by investing activities | 6,655 | 11,458 |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in deposits | 63,628 | 28,410 |
Proceeds from borrowings | 40,000 | 21,000 |
Payments of borrowings | (40,000) | (31,727) |
Proceeds from exercise of common stock options | 80 | 373 |
Net cash provided by financing activities | 63,708 | 18,056 |
Net increase (decrease) in cash and cash equivalents | 77,523 | 37,398 |
Cash and Cash Equivalents, beginning of period | 187,718 | 198,208 |
Cash and Cash Equivalents, end of period | 265,241 | 235,606 |
Supplementary Cash Flow Information: | ||
Cash paid for interest on deposits and other borrowings | 8,226 | 6,282 |
Cash paid for income taxes | 0 | 53 |
Non-Cash Investing Activities: | ||
Transfer of loans into other assets | 82 | 0 |
Transfer of loans into other real estate owned | 0 | 1,346 |
Impact of change in accounting principle | 0 | 97 |
Assumption of debt upon foreclosure of property | 0 | $ 727 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 9,919 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Organization Pacific Mercantile Bancorp (“PMBC”) is a bank holding company which, through its wholly owned subsidiary, Pacific Mercantile Bank (the “Bank”), is engaged in the commercial banking business in Southern California. PMBC is registered as a one bank holding company under the United States Bank Holding Company Act of 1956, as amended, and, as such, is regulated by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and the Federal Reserve Bank of San Francisco (“FRBSF”) under delegated authority from the Federal Reserve Board. Substantially all of our operations are conducted and substantially all of our assets are owned by the Bank, which accounts for substantially all of our consolidated revenues, expenses, and income. The Bank provides a full range of banking services to small and medium-size businesses and professionals primarily in Orange, Los Angeles, San Bernardino and San Diego counties in Southern California and is subject to competition from, among other things, other banks and financial institutions and from financial services organizations conducting operations in those same markets. The Bank is chartered by the California Department of Business Oversight under the Division of Financial Institutions and is a member of the FRBSF. In addition, the deposit accounts of the Bank’s customers are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the maximum amount allowed by law. PM Asset Resolution, Inc. (“PMAR”) was a wholly owned subsidiary of PMBC, which existed for the purpose of purchasing certain non-performing loans and other real estate from the Bank and thereafter collecting on or disposing of those assets. PMAR was dissolved and all remaining capital was returned to PMBC during the third quarter of 2018. PMBC, the Bank and PMAR are sometimes referred to, together, on a consolidated basis, in this report as the “Company” or as “we”, “us” or “our”. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Except as discussed below, our accounting policies are described in Note 2, Significant Accounting Policies of our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (“Form 10-K”). Interim Consolidated Financial Statements Basis of Presentation Our interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in effect in the United States (“GAAP”) for interim financial information pursuant to rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), including instructions to Form 10-Q and Article 10 of Regulation S-X, on a basis consistent with prior periods. Our financial statements reflect all adjustments that are, in the opinion of management, necessary to present a fair statement of the results for the interim periods presented. The interim results are not necessarily indicative of operating results for the full year. The interim information should be read in conjunction with our audited consolidated financial statements in our Form 10-K. Use of Estimates The preparation of the financial statements in conformity with GAAP requires us to make certain estimates and assumptions that could affect the reported amounts of certain of our assets, liabilities, and contingencies at the date of the financial statements and the reported amounts of our revenues and expenses during the reporting periods. For the fiscal periods covered by this report, those estimates related primarily to our determinations of the allowance for loan and lease losses (“ALLL”), the fair values of securities available for sale, and the determination of the valuation allowance pertaining to deferred tax assets. If circumstances or financial trends on which those estimates were based were to change in the future or there were to occur any currently unanticipated events affecting the amounts of those estimates, our future financial position or results of operations could differ, possibly materially, from those expected at the current time. Principles of Consolidation Our consolidated financial statements for the three and six months ended June 30, 2019 and 2018 include the accounts of PMBC, the Bank and PMAR; PMAR was liquidated during the third quarter of 2018. All significant intercompany balances and transactions were eliminated in consolidation. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” which requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability measured on a discounted basis and a right-of-use asset a specified asset for the lease term. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged and the accounting for sale and leaseback transactions were simplified. We elected most of the new standard’s available transition practical expedients. The new standard had a material effect on our financial statements. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our office and equipment operating leases; and (2) providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we did not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides an additional transition method upon adoption of ASU 2016-02. The guidance allows an entity to apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to beginning retained earnings in the period of adoption. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842): Codification Improvements,” which provides additional guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers, requires lessors that are banking institutions to present all "principal payments received under leases" within investing activities, and exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. On adoption of these accounting standards, we recognized additional operating liabilities of $11.1 million , with corresponding ROU assets of the same or less amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. We recorded a $207 thousand adjustment to our beginning retained earnings. This guidance is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. We adopted this guidance on January 1, 2019. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the measurement of all expected credit losses for financial assets held at the reporting date, based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions will now use forward-looking information to better inform their credit loss estimates. Additionally, the ASU amends the accounting guidance for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual periods beginning after December 15, 2018. We plan to adopt this guidance on January 1, 2020 and expect that it will have a material impact on the determination of our ALLL. We are unable to estimate the expected impact to the ALLL upon adoption due to various factors, primarily the fine tuning of our qualitative assumptions used within our preliminary model, uncertainty regarding economic conditions and the size and mix of our loan portfolio at the time of adoption, which could impact our historical loss factors. We are currently working with our existing ALLL software provider on further developing the model to perform the ALLL calculations upon adoption and we believe that we currently have in place the internal team capable of handling this implementation. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement,” which amends the disclosure requirements related to fair value. The guidance removes disclosure related to transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of these transfers and the valuation processes for Level 3 fair value measurements. Additional disclosures required as a result of adoption of this ASU will include the change in Level 3 unrealized gains and losses included in other comprehensive income and the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. This guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosure requirements until their effective date. We are currently evaluating this guidance to determine the date of adoption and impact on the Company. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under FASB Accounting Standards Codification (“ASC”) 820-10, we group assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Risks with Fair Value Measurements Fair value estimates are made at a discrete point in time based on relevant market information and other information about the financial instruments. Because no active market exists for a significant portion of our financial instruments, fair value estimates are based in large part on judgments we make primarily regarding current economic conditions, risk characteristics of various financial instruments, prepayment rates, and future expected loss experience. These estimates are subjective in nature and invariably involve some inherent uncertainties. Additionally, the occurrence of unexpected events or changes in circumstances can occur that could require us to make changes to our assumptions and which, in turn, could significantly affect and require us to make changes to our previous estimates of fair value. In addition, the fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of existing and anticipated future customer relationships and the value of assets and liabilities that are not considered financial instruments, such as premises and equipment and other real estate owned (“OREO”). Measurement Methodology Cash and Cash Equivalents. The fair value of cash and cash equivalents approximates its carrying value. Interest-Bearing Deposits with Financial Institutions. The fair values of interest-bearing deposits maturing within one year approximate their carrying values. FHLB and FRBSF Stock. The Bank is a member of the Federal Home Loan Bank of San Francisco (“FHLB”) and the FRBSF. As members, we are required to own stock of the FHLB and the FRBSF, the amount of which is based primarily on the level of our borrowings from those institutions. We also have the right to acquire additional shares of stock in either or both of the FHLB and the FRBSF. During the three and six months ended June 30, 2019 , we purchased no FHLB or FRBSF stock. No shares of FHLB stock or FRBSF stock were called during the three and six months ended June 30, 2019 . The fair values of the FHLB and FRBSF stock are equal to their respective carrying amounts, are classified as restricted securities and are periodically evaluated for impairment based on our assessment of the ultimate recoverability of our investments in that stock. Any cash or stock dividends paid to us on such stock are reported as income. Investment Securities Available for Sale. Fair value measurement for our investment securities available for sale is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 investment securities include those traded on an active exchange, such as the New York Stock Exchange, and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 investment securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Equity Investments Without Readily Determinable Fair Value . Equity investments without readily determinable fair value are accounted for under the measurement alternative method of accounting. These investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any cash or stock dividends paid to us on such investments are reported as noninterest income. Impaired Loans . Loans measured for impairment are measured at an observable market price (if available), or the fair value of the loan’s collateral (if the loan is collateral dependent). The fair value of an impaired loan may be estimated using one of several methods, including collateral value, market value of similar debt, liquidation value and discounted cash flows. Those impaired loans not requiring a specific loan loss reserve represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. When the fair value of the collateral is based on an observable market price or a current appraised value, we record the impaired loan at Level 2. When an appraised value is not available or we determine that the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we record the impaired loan at Level 3. Loans . The fair value for loans with variable interest rates less a credit discount is the carrying amount. The fair value of fixed rate loans is derived by calculating the present value of expected future cash flows discounted at the loan’s original interest rate by the various homogeneous categories of loans. All loans have been adjusted to reflect changes in credit risk and represent the exit price of the loans. Changes are not recorded directly as an adjustment to current earnings or comprehensive income, but rather as an adjustment component in determining the overall adequacy of the loan loss reserve. Other Real Estate Owned. OREO is reported at its net realizable value (fair value less estimated costs to sell) at the time any real estate collateral is acquired by the Bank in satisfaction of a loan. Subsequently, OREO is carried at the lower of carrying value or fair value less estimated costs to sell. Fair value is determined based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, we record the foreclosed asset at Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we record the foreclosed asset at Level 3. Other Foreclosed Assets. Other foreclosed assets are reported at their net realizable value (fair value less estimated costs to sell) at the time any collateral other than real estate is acquired by the Bank in satisfaction of a loan. Subsequently, other foreclosed assets are carried at the lower of carrying value or fair value less estimated costs to sell. Fair value is determined based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, we record the foreclosed asset at Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we record the foreclosed asset at Level 3. Deposits. Deposits are carried at historical cost. The carrying amounts of deposits from savings and money market accounts are deemed to approximate fair value as they either have no stated maturities or short-term maturities. Certificates of deposit are estimated utilizing discounted cash flow techniques. The interest rates applied are rates currently being offered for similar certificates of deposit. Borrowings. The fair value of borrowings is the carrying amount for those borrowings that mature on a daily basis. The fair value of term borrowings is derived by calculating the discounted value of future cash flows expected to be paid out by the Company. We classify our borrowings in Level 2 of the fair value hierarchy. Junior Subordinated Debentures. The fair value of the junior subordinated debentures is based on quoted market prices of the underlying securities. These securities are variable rate in nature and repriced quarterly. We classify our junior subordinated debentures in Level 2 of the fair value hierarchy. Commitments to Extend Credit and Standby Letters of Credit. The fair value of commitments to extend credit and standby letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Interest Receivable and Interest Payable. The carrying amounts of our accrued interest receivable and accrued interest payable are deemed to approximate fair value. Assets Recorded at Fair Value on a Recurring Basis The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 : At June 30, 2019 (Dollars in thousands) Total Level 1 Level 2 Level 3 Assets at Fair Value: Debt securities available for sale U.S. Treasury securities $ 1,996 $ — $ 1,996 $ — Commercial mortgage backed securities issued by U.S. Agencies 4,586 — 4,586 — Residential mortgage backed securities issued by U.S. agencies 21,811 — 21,811 — Total debt securities available for sale at fair value $ 28,393 $ — $ 28,393 $ — At December 31, 2018 (Dollars in thousands) Total Level 1 Level 2 Level 3 Assets at Fair Value: Debt securities available for sale U.S. Treasury securities $ 2,980 $ — $ 2,980 $ — Commercial mortgage backed securities issued by U.S. Agencies 4,534 — 4,534 — Residential mortgage backed securities issued by U.S. agencies 23,717 — 23,717 — Total debt securities available for sale 31,231 — 31,231 — Assets Recorded at Fair Value on a Nonrecurring Basis We may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These nonrecurring fair value adjustments typically involve application of the lower of cost or market accounting or write-downs of individual assets. Information regarding assets measured at fair value on a nonrecurring basis is set forth in the table below. At June 30, 2019 At December 31, 2018 (Dollars in thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets at Fair Value: Impaired loans $ 1,344 $ — $ — $ 1,344 $ 4,226 $ — $ — $ 4,226 Other foreclosed assets 82 — 82 — 91 — 91 — Other real estate owned — — — — 1,173 — 1,173 — Total $ 1,426 $ — $ 82 $ 1,344 $ 5,490 $ — $ 1,264 $ 4,226 Significant Unobservable Inputs and Valuation Techniques of Level 3 Fair Value Measurements For our fair value measurements classified in Level 3 of the fair value hierarchy as of June 30, 2019 , a summary of the significant unobservable inputs and valuation techniques is as follows: Fair Value Measurement as of June 30, 2019 Valuation Techniques (2) Unobservable Inputs (2) Range Weighted Average (Dollars in thousands) Assets Impaired loans $ 1,344 Third-Party Pricing Discounted cash flow N/A (1) N/A (1) (1) As part of our process, we obtain appraisals for our various properties included within impaired loans which primarily rely upon market comparisons. These market comparisons support our assumption that the carrying value of the respective loans either requires or does not require additional impairment. (2) As of June 30, 2019 , there has been no change to our valuation techniques or the types of unobservable inputs used in the calculation of fair value from December 31, 2018. Fair Value Measurements for Other Financial Instruments The table below provides estimated fair values and related carrying amounts of our financial instruments as of June 30, 2019 and December 31, 2018 , excluding financial assets and liabilities which are recorded at fair value on a recurring basis. Estimated Fair Value At June 30, 2019 At December 31, 2018 Carrying Value Total Level 1 Level 2 Level 3 Carrying Value Total Level 1 Level 2 Level 3 (Dollars in thousands) Financial assets: Cash and cash equivalents $ 265,241 $ 265,241 $ 265,241 $ — $ — $ 187,718 $ 187,718 187,718 — — Interest-bearing deposits with financial institutions 2,420 2,420 2,420 — — 2,420 2,420 2,420 — — Federal Reserve Bank of San Francisco and Federal Home Loan Bank stock 7,910 7,910 7,910 — — 8,822 8,822 8,822 — — Loans, net 1,077,595 1,070,951 — — 1,070,951 1,083,240 1,066,147 — — 1,066,147 Accrued interest receivable 4,365 4,365 4,365 — — 4,003 4,003 4,003 — — Financial liabilities: Noninterest bearing deposits 378,063 378,063 378,063 — — 340,406 340,406 340,406 — — Interest-bearing deposits 821,567 822,553 — 822,553 — 795,596 794,321 — 794,321 — Borrowings 40,000 40,018 — 40,018 — 40,000 39,976 — 39,976 — Junior subordinated debentures 17,527 17,527 — 17,527 — 17,527 17,527 — 17,527 — Accrued interest payable 497 497 497 — — 361 361 361 — — |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments Securities Available For Sale, at Fair Value The following table sets forth the major components of securities available for sale and compares the amortized costs and estimated fair market values of, and the gross unrealized gains and losses on, these securities at June 30, 2019 and December 31, 2018 : (Dollars in thousands) June 30, 2019 December 31, 2018 Amortized Cost Gross Unrealized Estimated Fair Value Amortized Cost Gross Unrealized Estimated Fair Value Gain Loss Gain Loss Securities Available for Sale U.S. Treasury securities $ 1,999 $ — $ (3 ) $ 1,996 $ 2,999 $ — $ (19 ) $ 2,980 Commercial mortgage backed securities issued by U.S. Agencies (1) 4,428 158 — 4,586 4,495 40 (1 ) 4,534 Residential mortgage backed securities issued by U.S. Agencies (2) 22,060 2 (251 ) 21,811 24,739 1 (1,023 ) 23,717 Total $ 28,487 $ 160 $ (254 ) $ 28,393 $ 32,233 $ 41 $ (1,043 ) $ 31,231 (1) Secured by first liens on commercial apartment building mortgages. (2) Secured by closed-end first liens on 1-4 family residential mortgages. At June 30, 2019 and December 31, 2018 , U.S. agency residential mortgage backed securities with an aggregate fair market value of $12.4 million and $18.2 million , respectively, were pledged to secure repurchase agreements, local agency deposits and treasury, tax and loan accounts. The amortized cost and estimated fair values of securities available for sale at June 30, 2019 and December 31, 2018 are shown in the tables below by contractual maturities taking into consideration historical prepayments based on the prior twelve months of principal payments. Expected maturities will differ from contractual maturities and historical prepayments, particularly with respect to collateralized mortgage obligations, primarily because prepayment rates are affected by changes in conditions in the interest rate market and, therefore, future prepayment rates may differ from historical prepayment rates. At June 30, 2019 Maturing in (Dollars in thousands) One year or less Over one year through five years Over five years through ten years Over ten Years Total Securities available for sale, amortized cost $ 7,055 $ 12,948 $ 7,305 $ 1,179 $ 28,487 Securities available for sale, estimated fair value 7,018 12,807 7,345 1,223 28,393 Weighted average yield 1.47 % 1.60 % 2.21 % 3.26 % 1.79 % At December 31, 2018 Maturing in (Dollars in thousands) One year or less Over one year through five years Over five years through ten years Over ten Years Total Securities available for sale, amortized cost $ 7,874 $ 13,466 $ 9,971 $ 922 $ 32,233 Securities available for sale, estimated fair value 7,663 12,934 9,710 924 31,231 Weighted average yield 1.46 % 1.62 % 2.22 % 3.13 % 1.81 % We purchased no securities available for sale during the three and six months ended June 30, 2019 or during the three and six months ended June 30, 2018 . During the three months ended March 31, 2018, we had sales proceeds of $2.1 million on the sale of debt securities available for sale, with a gain of $53 thousand , and sales proceeds of $4.8 million on the sale of our equity securities, with a loss of $5 thousand . We had no sales of securities available for sale during the three months ended June 30, 2018 or the three and six months ended June 30, 2019. The tables below indicate, as of June 30, 2019 and December 31, 2018 , the gross unrealized losses and fair values of our investments, aggregated by investment category, and length of time that the individual securities have been in a continuous unrealized loss position. Securities with Unrealized Loss at June 30, 2019 Less than 12 months 12 months or more Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury securities $ — $ — $ 1,996 $ (3 ) $ 1,996 $ (3 ) Commercial mortgage backed securities issued by U.S. Agencies — — — — — — Residential mortgage backed securities issued by U.S. Agencies — — 19,487 (251 ) 19,487 (251 ) Total $ — $ — $ 21,483 $ (254 ) $ 21,483 $ (254 ) Securities with Unrealized Loss at December 31, 2018 Less than 12 months 12 months or more Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury securities $ — $ — $ 2,980 $ (19 ) $ 2,980 $ (19 ) Commercial mortgage backed securities issued by U.S. Agencies 999 (1 ) — — 999 (1 ) Residential mortgage backed securities issued by U.S. Agencies 361 (3 ) 23,299 (1,020 ) 23,660 (1,023 ) Total $ 1,360 $ (4 ) $ 26,279 $ (1,039 ) $ 27,639 $ (1,043 ) We regularly monitor investments for significant declines in fair value. We have determined that declines in the fair values of these investments below their respective amortized costs, as set forth in the tables above, are temporary because (i) those declines were due to interest rate changes and not to a deterioration in the creditworthiness of the issuers of those investment securities, and (ii) we have the ability to hold those securities until there is a recovery in their values or until their maturity. We recognize other-than-temporary impairments (“OTTI”) to our available-for-sale debt securities in accordance with FASB ASC 320-10. When there are credit losses associated with, but we have no intention to sell, an impaired debt security, and it is more likely than not that we will not have to sell the security before recovery of its cost basis, we will separate the amount of impairment, or OTTI, between the amount that is credit-related and the amount that is related to non-credit factors. Credit-related impairments are recognized in our consolidated statements of operations. Any non-credit-related impairments are recognized and reflected in other comprehensive income in our consolidated statements of financial condition. Through the impairment assessment process, we determined that there were no available-for-sale debt securities that were other-than-temporarily impaired at June 30, 2019 . We recorded no impairment credit losses on available-for-sale debt securities in our consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 . We have made a determination that the remainder of our securities with respect to which there were unrealized losses as of June 30, 2019 are not other-than-temporarily impaired, because we have concluded that we have the ability to continue to hold those securities until their respective fair market values increase above their respective amortized costs or, if necessary, until their respective maturities. In reaching that conclusion we considered a number of factors and other information, which included: (i) the significance of each such security, (ii) the amount of the unrealized losses attributable to each such security, (iii) our liquidity position, (iv) the impact that retention of those securities could have on our capital position and (v) our evaluation of the expected future performance of these securities (based on the criteria discussed above). Equity Investments Without Readily Determinable Fair Value As of June 30, 2019 , we had three investments in private companies and limited partnerships without a readily determinable fair value. As of June 30, 2019 , we owned less than 3% of the total investment in each such company or partnership. Under ASU 2016-01, we elected to measure these equity investments using the measurement alternative, which requires that these investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. During the three and six months ended June 30, 2019 , these investments were not impaired and there were no observable price changes. As a result, the balance shown below as of June 30, 2019 represents the cost of the investments and is included within other assets on the consolidated statements of financial condition. Prior to the adoption of ASU 2016-01, these investments were accounted for under the cost method of accounting and included within other assets on the consolidated statements of financial condition. During the three and six months ended June 30, 2019 , we had $283 thousand and $877 thousand , respectively, of capital contributions to these investments. We had $89 thousand and $89 thousand , respectively, of capital contributions to these investments during the three and six months ended June 30, 2018 . As of June 30, 2019 and December 31, 2018 , our equity investments without readily determinable fair value were as follows: June 30, 2019 December 31, 2018 (Dollars in thousands) Equity investments without readily determinable fair value $ 2,117 $ 1,240 |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan and Lease Losses | Loans and Allowance for Loan and Lease Losses The loan portfolio consisted of the following at: June 30, 2019 December 31, 2018 (Dollars in thousands) Amount Percent Amount Percent Commercial loans $ 441,850 40.7 % $ 444,441 40.7 % Commercial real estate loans – owner occupied 214,233 19.7 % 211,645 19.3 % Commercial real estate loans – all other 221,437 20.4 % 226,441 20.7 % Residential mortgage loans – multi-family 83,966 7.7 % 97,173 8.9 % Residential mortgage loans – single family 21,294 2.0 % 21,176 1.9 % Construction and land development loans 12,230 1.1 % 38,496 3.5 % Consumer loans 91,442 8.4 % 54,514 5.0 % Gross loans 1,086,452 100.0 % 1,093,886 100.0 % Deferred fee (income) costs, net 2,617 2,860 Allowance for loan and lease losses (11,474 ) (13,506 ) Loans, net $ 1,077,595 $ 1,083,240 At June 30, 2019 and December 31, 2018 , real estate loans of approximately $386 million and $807 million , respectively, were pledged to secure borrowings obtained from the FHLB and to support our unfunded borrowing capacity. At June 30, 2019 and December 31, 2018 , commercial and consumer loans of $219 million and $51 million , respectively, were pledged to secure borrowings from the FRB to support our unfunded borrowing capacity. During the three and six months ended June 30, 2019, we sold $2.4 million and $7.1 million , respectively, of Small Business Administration (SBA) loans at a premium. During the three and six months ended June 30, 2018, we sold $15.1 million of commercial real estate loans - all other at par value. During the three and six months ended June 30, 2019 , we purchased loans totaling $46.4 million , of which $39.9 million were consumer loans. We purchased no loans during the three and six months ended June 30, 2018. Allowance for Loan and Lease Losses The ALLL represents our estimate of credit losses in our loan and lease portfolio that are probable and estimable at the balance sheet date. We employ economic models that are based on bank regulatory guidelines, industry standards and our own historical loan loss experience, as well as a number of more subjective qualitative factors, to determine both the sufficiency of the ALLL and the amount of the provisions that are required to increase or replenish the ALLL. The ALLL is first determined by (i) analyzing all classified loans (graded as “Substandard” or “Doubtful” under our internal asset quality grading parameters) on nonaccrual status for loss exposure and (ii) establishing specific reserves as needed. ASC 310-10 defines loan impairment as the existence of uncertainty concerning collection of all principal and interest in accordance with the contractual terms of a loan. For collateral dependent loans, impairment is typically measured by comparing the loan amount to the fair value of collateral, less estimated costs to sell, with any “shortfall” amount charged off. Other methods can be used in estimating impairment, including market price and the present value of expected future cash flows discounted at the loan’s original interest rate. We are an active lender with the U.S. Small Business Administration and collection of a percentage of the loan balance of many of the loans originated is guaranteed. The ALLL reserves are calculated against the non-guaranteed loan balances. On a quarterly basis, we utilize a classification based loan loss migration model as well as review individual loans in determining the adequacy of the ALLL for homogenous pools of loans that are not subject to specific reserve allocations. Our loss migration analysis utilizes a series of nineteen staggered 16-quarter migration periods of loan loss history and industry loss factors to determine historical losses by classification category for each loan type, except certain consumer loans (automobile, mortgage and credit cards). We then apply these calculated loss factors, together with qualitative factors based on external economic conditions and trends and internal assessments, to the outstanding loan balances in each homogenous group of loans, and then, using our internal asset quality grading parameters, we grade the loans as “Pass,” “Special Mention,” “Substandard” or “Doubtful”. We analyze impaired loans individually. This grading is based on the credit classifications of assets as prescribed by government regulations and industry standards and is separated into the following groups: • Pass: Loans classified as pass include current loans performing in accordance with contractual terms, installment/consumer loans that are not individually risk rated, and loans which exhibit certain risk factors that require greater than usual monitoring by management. • Special Mention: Loans classified as special mention, while generally not delinquent, have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Bank’s credit position at some future date. • Substandard: Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful: Loans classified as doubtful have all the weaknesses inherent in a substandard loan, and may also be at delinquency status and have defined weaknesses based on currently existing facts, conditions and values making collection or liquidation in full highly questionable and improbable. Set forth below is a summary of the activity in the ALLL, by portfolio type, during the three and six months ended June 30, 2019 and 2018: (Dollars in thousands) Commercial Real Estate Construction and Land Development Consumer and Single Family Mortgages Unallocated Total ALLL in the three months ended June 30, 2019: Balance at beginning of period $ 6,895 $ 2,709 $ 295 $ 1,486 $ 129 $ 11,514 Charge offs (103 ) — — (24 ) — (127 ) Recoveries 82 — — 5 — 87 Provision (65 ) 81 (176 ) 289 (129 ) — Balance at end of period $ 6,809 $ 2,790 $ 119 $ 1,756 $ — $ 11,474 ALLL in the six months ended June 30, 2019: Balance at beginning of period $ 8,071 $ 3,643 $ 426 $ 1,290 $ 76 $ 13,506 Charge offs (5,772 ) — — (53 ) — (5,825 ) Recoveries 483 — — 10 — 493 Provision 4,027 (853 ) (307 ) 509 (76 ) 3,300 Balance at end of period $ 6,809 $ 2,790 $ 119 $ 1,756 $ — $ 11,474 ALLL in the three months ended June 30, 2018: Balance at beginning of period $ 7,634 $ 3,255 $ 888 $ 1,112 $ 516 $ 13,405 Charge offs (355 ) — — — — (355 ) Recoveries 288 — — 31 — 319 Provision (74 ) (302 ) (561 ) 435 502 — Balance at end of period $ 7,493 $ 2,953 $ 327 $ 1,578 $ 1,018 $ 13,369 ALLL in the six months ended June 30, 2018: Balance at beginning of period $ 9,155 $ 2,906 $ 650 $ 1,043 $ 442 $ 14,196 Charge offs (1,423 ) — — — — (1,423 ) Recoveries 560 — — 36 — 596 Provision (799 ) 47 (323 ) 499 576 — Balance at end of period $ 7,493 $ 2,953 $ 327 $ 1,578 $ 1,018 $ 13,369 Set forth below is information regarding loan balances and the related ALLL, by portfolio type, as of June 30, 2019 and December 31, 2018 . (Dollars in thousands) Commercial Real Estate Construction and Land Consumer Unallocated Total ALLL balance at June 30, 2019 related to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 6,809 2,790 119 1,756 — 11,474 Total $ 6,809 $ 2,790 $ 119 $ 1,756 $ — $ 11,474 Loans balance at June 30, 2019 related to: Loans individually evaluated for impairment $ 345 $ 782 $ — $ — $ — $ 1,127 Loans collectively evaluated for impairment 441,505 518,854 12,230 112,736 — 1,085,325 Total $ 441,850 $ 519,636 $ 12,230 $ 112,736 $ — $ 1,086,452 ALLL balance at December 31, 2018 related to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 8,071 3,643 426 1,290 76 13,506 Total $ 8,071 $ 3,643 $ 426 $ 1,290 $ 76 $ 13,506 Loans balance at December 31, 2018 related to: Loans individually evaluated for impairment $ 3,352 $ 831 $ — $ 43 $ — $ 4,226 Loans collectively evaluated for impairment 441,089 534,428 38,496 75,647 — 1,089,660 Total $ 444,441 $ 535,259 $ 38,496 $ 75,690 $ — $ 1,093,886 Credit Quality The amounts of nonperforming assets and delinquencies that occur within our loan portfolio factor into our evaluation of the adequacy of the ALLL. The following table provides a summary of the delinquency status of loans by portfolio type at June 30, 2019 and December 31, 2018 : (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Total Past Due Current Total Loans Outstanding Loans >90 Days and Accruing At June 30, 2019 Commercial loans $ 2,097 $ 3,237 $ — $ 5,334 $ 436,516 $ 441,850 $ — Commercial real estate loans – owner-occupied — — — — 214,233 214,233 — Commercial real estate loans – all other — — — — 221,437 221,437 — Residential mortgage loans – multi-family — — — — 83,966 83,966 — Residential mortgage loans – single family — — — — 21,294 21,294 — Construction and land development loans — — — — 12,230 12,230 — Consumer loans — — — — 91,442 91,442 — Total $ 2,097 $ 3,237 $ — $ 5,334 $ 1,081,118 $ 1,086,452 $ — At December 31, 2018 Commercial loans $ — $ 3,705 $ 4,273 $ 7,978 $ 436,463 $ 444,441 $ 1,278 Commercial real estate loans – owner-occupied — 831 — 831 210,814 211,645 — Commercial real estate loans – all other — — — — 226,441 226,441 — Residential mortgage loans – multi-family — — — — 97,173 97,173 — Residential mortgage loans – single family — — — — 21,176 21,176 — Construction and land development loans — — — — 38,496 38,496 — Consumer loans 13 — — 13 54,501 54,514 — Total $ 13 $ 4,536 $ 4,273 $ 8,822 $ 1,085,064 $ 1,093,886 $ 1,278 Generally, the accrual of interest on a loan is discontinued when principal or interest payments become more than 90 days past due, unless we believe that the loan is adequately collateralized and it is in the process of collection. There were no loans 90 days or more past due and still accruing interest at June 30, 2019 . There were $1.3 million of loans 90 days or more past due and still accruing interest at December 31, 2018 . In certain instances, when a loan is placed on nonaccrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received (referred to as full nonaccrual basis of accounting), except when the ultimate collectability of principal is probable, in which case such payments are applied to accrued and unpaid interest, which is credited to income (referred to as nonaccrual cash basis of accounting). Nonaccrual loans may be restored to accrual status when principal and interest become current and full repayment becomes expected. The following table provides information with respect to loans on nonaccrual status, by portfolio type, as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (Dollars in thousands) Nonaccrual loans: Commercial loans $ 467 $ 3,352 Commercial real estate loans – owner occupied 782 831 Consumer 95 43 Total (1) $ 1,344 $ 4,226 (1) Nonaccrual loans may include loans that are currently considered performing loans. We classify our loan portfolio using internal asset quality ratings. The following table provides a summary of loans by portfolio type and our internal asset quality ratings as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (Dollars in thousands) Pass: Commercial loans $ 400,270 $ 428,287 Commercial real estate loans – owner occupied 207,740 205,914 Commercial real estate loans – all other 221,437 226,441 Residential mortgage loans – multi family 83,966 97,173 Residential mortgage loans – single family 21,294 21,176 Construction and land development loans 12,230 38,496 Consumer loans 91,347 54,415 Total pass loans $ 1,038,284 $ 1,071,902 Special Mention: Commercial loans $ 37,364 $ 10,411 Commercial real estate loans – owner occupied 5,712 4,900 Total special mention loans $ 43,076 $ 15,311 Substandard: Commercial loans $ 4,216 $ 5,743 Commercial real estate loans – owner occupied 782 831 Consumer loans 94 99 Total substandard loans $ 5,092 $ 6,673 Doubtful: Total doubtful loans $ — $ — Total Loans: $ 1,086,452 $ 1,093,886 Impaired Loans A loan generally is classified as impaired when, in our opinion, principal or interest is not likely to be collected in accordance with the contractual terms of the loan agreement. We measure for impairments on a loan-by-loan basis, using either the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral if the loan is collateral dependent. The following table sets forth information regarding impaired loans, at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (Dollars in thousands) Impaired loans: Nonaccruing loans $ 1,344 $ 4,226 Nonaccruing restructured loans (1) — — Accruing restructured loans (1)(2) — — Total impaired loans $ 1,344 $ 4,226 Impaired loans less than 90 days delinquent and included in total impaired loans $ 1,344 $ 1,232 (1) As of June 30, 2019 and December 31, 2018, we had no restructured loans. (2) See “ Troubled Debt Restructurings ” below for a description of accruing restructured loans at June 30, 2019 and December 31, 2018. The table below contains additional information with respect to impaired loans, by portfolio type, as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance (1) Recorded Investment Unpaid Principal Balance Related Allowance (1) (Dollars in thousands) No allowance recorded: Commercial loans $ 467 $ 732 $ — $ 3,352 $ 4,516 $ — Commercial real estate loans – owner occupied 782 903 — 831 925 — Consumer loans 95 126 — 43 65 — Total 1,344 1,761 — 4,226 5,506 — With allowance recorded: Total — — — — — — Total Commercial loans $ 467 $ 732 $ — $ 3,352 $ 4,516 $ — Commercial real estate loans – owner occupied 782 903 — 831 925 — Consumer loans 95 126 — 43 65 — Total 1,344 1,761 — 4,226 5,506 — (1) When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, then specific reserves are not required to be set aside for the loan within the ALLL. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the balance of the principal outstanding. At June 30, 2019 and December 31, 2018 , there were $1.3 million and $4.2 million , respectively, of impaired loans for which no specific reserves had been allocated because these loans, in our judgment, were sufficiently collateralized. Of the impaired loans at June 30, 2019 for which no specific reserves were allocated, $1.2 million had been deemed impaired in the prior year. Average balances and interest income recognized on impaired loans, by portfolio type, for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized (Dollars in thousands) No allowance recorded: Commercial loans $ 471 $ — $ 4,408 $ — $ 1,432 $ — $ 4,013 $ 62 Commercial real estate loans – owner occupied 794 — 871 — 806 — 879 — Commercial real estate loans – all other — — 739 — — — 1,016 — Residential mortgage loans – single family — — — — — — 57 — Consumer loans 67 — 52 — 59 — 53 — Total 1,332 — 6,070 — 2,297 — 6,018 62 With allowance recorded: Commercial loans — — 193 — — — 279 — Total — — 193 — — — 279 — Total Commercial loans 471 — 4,601 — 1,432 — 4,292 62 Commercial real estate loans – owner occupied 794 — 871 — 806 — 879 — Commercial real estate loans – all other — — 739 — — — 1,016 — Residential mortgage loans – single family — — — — — — 57 — Consumer loans 67 — 52 — 59 — 53 — Total $ 1,332 $ — $ 6,263 $ — $ 2,297 $ — $ 6,297 $ 62 The interest that would have been earned had the impaired loans remained current in accordance with their original terms was $26 thousand and $101 thousand during the three months ended June 30, 2019 and 2018 , respectively, and $45 thousand and $206 thousand during the six months ended June 30, 2019 and 2018 , respectively. Troubled Debt Restructurings (“TDRs”) Pursuant to the FASB's ASU No. 2011-2, A Creditor’s Determination of whether a Restructuring is a Troubled Debt Restructuring , the Bank's TDRs totaled $0 at both June 30, 2019 and December 31, 2018 . TDRs consist of loans to which modifications have been made for the purpose of alleviating temporary impairments of the borrower's financial condition and cash flows. Those modifications have come in the form of changes in amortization terms, reductions in interest rates, interest only payments and, in limited cases, concessions to outstanding loan balances. The modifications are made as part of workout plans we enter into with the borrower that are designed to provide a bridge for the borrower’s cash flow shortfalls in the near term. If a borrower works through the near term issues, then in most cases, the original contractual terms of the borrower’s loan will be reinstated. There were no loans restructured as TDRs during the three and six months ended June 30, 2019 or 2018 . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have historically entered into a number of lease arrangements under which we are the lessee. Specifically, all of our physical locations are subject to operating leases. In addition, we have elected the short-term lease practical expedient related to operating leases. Two of our office leases, including our corporate headquarters, include multiple optional renewal periods. To the extent we conclude that it is reasonably certain that a renewal option will be exercised, that renewal period is then included in the lease term, and the related payments are reflected in the ROU asset and lease liability. Generally, we consider any additional renewal periods to be reasonably certain of being exercised. All of our leases include fixed rental payments. We commonly enter into leases under which the lease payments increase at pre-determined dates. While the majority of our leases are gross leases, we also have a number of leases in which we make separate payments to the lessor based on the lessor’s property and casualty insurance costs and the property taxes assessed on the property, as well as a portion of the common area maintenance associated with the property. During the three and six months ended June 30, 2019 , we recognized rent expense associated with our leases as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Lease cost (Dollars in thousands) Finance lease cost: Operating lease cost 568 $ 1,113 Short-term lease cost (1) 29 81 Total lease cost $ 597 $ 1,194 Weighted-average remaining lease term—operating leases (in years) 5.57 (1) Includes leases that are less than 12 months and equipment leases that are accounted for on a cash basis. Because we generally do not have access to the rate implicit in the lease, we utilize our borrowing rate with the FHLB as the discount rate. The weighted average discount rate associated with operating leases as of June 30, 2019 is 1.69% . Supplemental balance sheet information related to leases was as follows: Financial Statement Classification June 30, 2019 (Dollars in thousands) Operating right-of-use assets Other assets $ 9,499 Operating lease liabilities Other liabilities $ 10,020 During the six months ended June 30, 2019 , we had the following cash and non-cash activities associated with our leases: Six Months Ended June 30, 2019 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases (fixed payments) $ 1,113 Non-cash activities: Right-of-use assets obtained in exchange for new operating lease liabilities $ 9,919 As a result of the Bank’s renewal of the lease of its headquarters, the ROU asset decreased from $10.6 million at March 31, 2019 to 9.9 million at June 30, 2019 . Maturities of operating lease liabilities as of June 30, 2019 are as follows: (Dollars in thousands) For the years ending December 31, Remainder of 2019 956 2020 1,921 2021 1,712 2022 1,768 2023 1,823 2024 and beyond 2,530 Total 10,710 Less: Imputed interest 690 Total Lease liabilities 10,020 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended June 30, 2019 , we had income tax expense of $1.2 million and $1.5 million , respectively, as a result of our operating income. Accounting rules specify that management must evaluate the deferred tax asset on a recurring basis to determine whether enough positive evidence exists to determine whether it is more-likely-than-not that the deferred tax asset will be available to offset or reduce future taxes. The tax code allows net operating losses incurred prior to December 31, 2017 to be carried forward for 20 years from the date of the loss, and based on its evaluation, management believes that the Company will be able to realize the deferred tax asset within the period that our net operating losses may be carried forward. Due to the hierarchy of evidence that the accounting rules specify, management determined that there continued to be enough positive evidence to support no valuation allowance on our deferred tax asset at June 30, 2019 . Significant positive evidence included our three-year cumulative income position, continued improvement in asset quality, and the expectation that we will continue to have positive earnings based on ten trailing quarters of positive income and our forecast. Negative evidence included our accumulated deficit. For the three and six months ended June 30, 2018 , we had an income tax benefit of $11.1 million and $11.1 million , respectively, as a result of the release of our full valuation allowance of $11.1 million on our net deferred tax asset. During the three months ended June 30, 2018 , management evaluated the positive and negative evidence and determined that the valuation allowance that was previously established on the balance of our deferred tax asset was no longer required at June 30, 2018 and released the entire $11.1 million during the three months ended June 30, 2018 . Based on this evaluation, management believed that the Company would be able to realize the deferred tax asset within the period that our operating losses may be carried forward. Significant positive evidence included our three-year cumulative income position, continued improvement in asset quality, and the expectation that we will continue to have positive earnings based on seven trailing quarters of positive income and our forecast. Negative evidence at June 30, 2018 included our accumulated deficit. We file income tax returns with the U.S. federal government and the State of California. As of June 30, 2019, we were subject to examination by the Internal Revenue Service with respect to our U.S. federal tax returns for the 2015 to 2017 tax years and the Franchise Tax Board for California state income tax returns for the 2014 to 2017 tax years. Net operating losses on our U.S. federal and California state income tax returns may be carried forward up to 20 years. As of June 30, 2019, we do not have any unrecognized tax benefits. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of tax expense. We did not have any accrued interest or penalties associated with any unrecognized tax benefits, and no interest expense was recognized during the three and six months ended June 30, 2019 and 2018. |
Stock-Based Employee Compensati
Stock-Based Employee Compensation Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Employee Compensation Plans | Stock-Based Employee Compensation Plans In May 2010, our shareholders approved the adoption of our 2010 Equity Incentive Plan, which was amended at the Annual Shareholders meeting held in May 2013 (the “2010 Incentive Plan”), and which superseded our shareholder-approved 2008 and 2004 Equity Incentive Plans (the “Previously Approved Plans”). Options to purchase a total of 6,003 shares of our common stock granted under the Previously Approved Plans were outstanding at June 30, 2019 . As of June 30, 2019 , there were options to purchase a total of 836,443 shares of our common stock and 170,214 shares of our unvested restricted stock grants under the 2010 Incentive Plan. In May 2019, our shareholders approved the adoption of our 2019 Equity Incentive Plan (the “2019 Incentive Plan”), which authorized and set aside a total of 2,000,000 shares of our common stock for issuance on the exercise of stock options or the grant of restricted stock or other equity incentives to our officers, and other key employees and directors. Since approval of the 2019 Incentive Plan, no additional awards will be issued under the 2010 Incentive Plan, although awards outstanding under the 2010 Incentive Plan will remain outstanding and will continue to be governed by the terms of the 2010 Incentive Plan and any applicable award agreements. Under the terms of the 2019 Incentive Plan, any forfeited options or unvested restricted stock grants that had been issued under the Previously Approved Plans or the 2010 Incentive Plan will not be available for future equity incentive grants. A stock option entitles the recipient to purchase shares of our common stock at a price per share that may not be less than 100% of the fair market value of the Company’s shares on the date the option is granted. Restricted shares may be granted at such purchase prices and on such other terms, including restrictions and Company repurchase or reacquisition rights, as are fixed by the Compensation Committee at the time rights to purchase such restricted shares are granted. Stock Appreciation Rights (“SARs”) entitle the recipient to receive a cash payment in an amount equal to the difference between the fair market value of the Company’s shares on the date of vesting and a “base price” (which, in most cases, will be equal to the fair market value of the Company’s shares on the date the SAR is granted), subject to the right of the Company to make such payment in shares of its common stock at their then fair market value. Stock units may be payable in cash or shares of common stock, or a combination of the two. A stock unit is a bookkeeping entry representing the equivalent of one common share. Options, restricted shares, SARs and stock units may vest in installments over various periods generally ranging up to five years , subject to the recipient’s continued employment or service or the achievement of specified performance goals, as determined by the Compensation Committee at the time it grants or awards the options, the restricted shares , the SARs or the stock units. Stock options, SARs and stock units may be granted for terms of up to 10 years after the date of grant, but will terminate sooner upon or shortly after a termination of service occurring prior to the expiration of the term of the option, SAR or stock unit. The Company will become entitled to repurchase any unvested restricted shares, at the same price that was paid for the shares by the recipient, or to cancel those shares in the event of a termination of employment or service of the holder of such shares or if any performance goals specified in the award are not satisfied. To date, the Company has not granted any SARs or stock units. Under FASB ASC 718-10, we are required to recognize, in our financial statements, the fair value of the options, restricted shares, SARs and stock units that we grant as compensation cost over their respective service periods. The fair values of the options that were outstanding at June 30, 2019 were estimated as of their respective dates of grant using the Black-Scholes option-pricing model. The Company has also granted restricted stock for the benefit of its employees and directors. These restricted shares vest over a period ranging from three to five years for employees and one year for directors. The recipients of restricted shares have the right to vote all shares subject to such grant and receive all dividends with respect to such shares whether or not the shares have vested. The recipients do not pay any cash consideration for the shares. Stock Options The table below summarizes the weighted average assumptions used to determine the fair values of the options granted during the following periods: Three Months Ended June 30, Six Months Ended June 30, Assumptions with respect to: 2019 (1) 2018 (1) 2019 2018 Expected volatility — % — % — % 30 % Risk-free interest rate — % — % — % 2.69 % Expected dividends — % — % — % — % Expected term (years) 0.0 0.0 0.0 5.8 Weighted average fair value of options granted during period $ — $ — $ — $ 2.81 (1) No stock options were granted during the three and six months ended June 30, 2019 or during the three months ended June 30, 2018. The following table summarizes the stock option activity under the Company’s equity incentive plans during the six months ended June 30, 2019 and 2018 , respectively. Number of Shares Weighted- Average Exercise Price Per Share Number of Shares Weighted- Average Exercise Price Per Share 2019 2018 Outstanding – January 1, 864,330 $ 6.86 792,577 $ 6.41 Granted — — 154,011 8.20 Exercised (15,000 ) 5.30 (75,108 ) 4.95 Forfeited/Canceled (6,884 ) 8.13 (7,150 ) 6.47 Outstanding – June 30, 842,446 6.88 864,330 6.86 Options Exercisable – June 30, 721,420 $ 6.68 585,482 $ 6.49 Options Vested – June 30, 721,420 $ 6.68 585,482 $ 6.49 Options to purchase 15,000 and 37,108 shares of our common stock were exercised during the three months ended June 30, 2019 and 2018 , respectively, and 15,000 and 75,108 during the six months ended June 30, 2019 and 2018 , respectively. The aggregate intrinsic value of options exercised during the three months ended June 30, 2019 and 2018 was $39 thousand and $311 thousand , respectively, and $39 thousand and $356 thousand during the six months ended June 30, 2019 and 2018 , respectively. The fair value of options that vested during the three months ended June 30, 2019 and 2018 was $74 thousand and $75 thousand , respectively, and $412 thousand and $349 thousand during the six months ended June 30, 2019 and 2018 , respectively. The following table provides additional information regarding the vested and unvested options that were outstanding at June 30, 2019 . Options Outstanding as of June 30, 2019 Options Exercisable (1) Exercise Price Vested Unvested Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Shares Weighted Average Exercise Price Per Share $2.97 – $3.99 18,003 — $ 3.48 1.95 18,003 $ 3.48 $4.00 – $5.99 16,000 — 4.34 1.80 16,000 4.34 $6.00– $6.99 478,435 16,552 6.61 5.00 478,435 6.60 $7.00– $7.99 161,129 — 7.08 6.27 161,129 7.08 $8.00-$8.40 47,853 104,474 8.19 8.63 47,853 8.18 721,420 121,026 $ 6.88 5.77 721,420 $ 6.68 (1) The weighted average remaining contractual life of the options that were exercisable as of June 30, 2019 was 5.34 years. The aggregate intrinsic value of options that were outstanding and exercisable at June 30, 2019 and December 31, 2018 was $1,131 thousand and $388 thousand , respectively. A summary of the status of the unvested options outstanding as of June 30, 2019 and 2018 , and changes in the weighted average grant date fair values of the unvested options during the six months ended June 30, 2019 and 2018 , are set forth in the following table. For the six months ended June 30, 2019 2018 Number of Shares Subject to Options Weighted Average Grant Date Fair Value Per Share Number of Weighted Unvested at the beginning of the period 275,457 $ 2.79 255,348 $ 2.80 Granted — — 154,011 2.81 Vested (147,687 ) 2.79 (123,361 ) 2.83 Forfeited/Canceled (6,744 ) 2.83 (7,150 ) 2.66 Unvested at the end of the period 121,026 2.79 278,848 2.79 At June 30, 2019 , the weighted average period over which nonvested awards were expected to be recognized was 2.10 years. Restricted Stock The following table summarizes the activity related to restricted stock granted, vested and forfeited under our equity incentive plans during the six months ended June 30, 2019 and 2018 . For the six months ended June 30, 2019 2018 Number of Shares Average Grant Date Fair Value Per Share Number of Shares Average Grant Date Fair Value Per Share Outstanding at the beginning of the period 115,031 $ 8.04 103,508 $ 7.33 Granted 123,896 8.59 75,417 8.19 Vested (61,337 ) 7.78 (62,564 ) 7.26 Forfeited (7,376 ) 8.77 (4,690 ) 7.55 Outstanding at the end of the period 170,214 $ 8.50 111,671 $ 7.94 Compensation Expense We expect that the compensation expense that will be recognized during the periods presented below in respect of stock options and restricted stock outstanding at June 30, 2019 , will be as follows: Estimated Stock Based Compensation Expense Stock Options Estimated Stock Based Compensation Expense Restricted Stock Estimated Stock Based Compensation Expense Total (Dollars in thousands) For the years ending December 31, Remainder of 2019 $ 74 $ 284 $ 358 2020 151 475 626 2021 44 352 396 2022 17 101 118 2023 and beyond 2 48 50 $ 288 $ 1,260 $ 1,548 The aggregate amounts of stock based compensation expense recognized in our consolidated statements of operations for the three months ended June 30, 2019 and 2018 were $154 thousand and $170 thousand , respectively, in each case net of taxes, and $295 thousand and $298 thousand for the six months ended June 30, 2019 and 2018 , respectively, in each case net of taxes. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic EPS excludes dilution and is computed by dividing net income or loss allocable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock that would then share in our earnings. The following table shows how we computed basic and diluted EPS for the three and six months ended June 30, 2019 and 2018 . (In thousands, except per share data) For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Basic EPS: Net income $ 2,728 $ 15,369 $ 3,610 $ 19,076 Less dividends on preferred stock — — — — Less dividends on common stock — — — — Less dividends on unvested shares — — — — Net income allocable to common shareholders $ 2,728 $ 15,369 $ 3,610 $ 19,076 Less earnings allocated to participating securities 102 78 191 94 Earnings allocated to common shareholders $ 2,626 $ 15,291 $ 3,419 $ 18,982 Weighted average common shares outstanding 22,620 23,213 22,224 23,185 Basic earnings per common share $ 0.12 $ 0.66 $ 0.15 $ 0.82 Diluted EPS: Earnings allocated to common shareholders $ 2,728 $ 15,369 $ 3,610 $ 19,076 Weighted average common shares outstanding 22,620 23,213 22,224 23,185 Add dilutive effects of restricted stock grants 170 119 154 114 Add dilutive effects for assumed conversion of Series A preferred stock 710 — 1,086 — Add dilutive effect for stock options 116 226 117 203 Weighted average diluted common shares outstanding 23,616 23,558 23,581 23,502 Diluted earnings per common share $ 0.12 $ 0.65 $ 0.15 $ 0.81 (1) The basic and diluted earnings per share amounts for the three and six months ended June 30, 2019 and 2018 are the same under both the Treasury Stock Method and the Two-Class Method as prescribed in FASB ASC 260-10, Earnings Per Share . The weighted average shares that have an antidilutive effect in the calculation of diluted net income per share and have been excluded from the computations above were as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Stock options (1) 183,724 157,711 184,275 113,971 (1) Represents stock options that were excluded from the computation of diluted earnings per common share for the three and six months ended June 30, 2019 and 2018 as a result of the shares being “out-of-the-money.” |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Accumulated Other Comprehensive Income (Loss), net Accumulated other comprehensive income (loss), net as of June 30, 2019 and December 31, 2018 was as follows: Unrealized Gain (Loss) on Securities Available-for-Sale, net of tax Accumulated Other Comprehensive Income (Loss), Net (Dollars in thousands) Ending balance as of December 31, 2017 $ (1,143 ) $ (1,143 ) Other comprehensive income before reclassifications, net of tax of $142 thousand (50 ) (50 ) Amounts reclassified from accumulated other comprehensive loss (1) 49 49 Other comprehensive loss, net of tax of $142 thousand (1 ) (1 ) Ending balance as of December 31, 2018 $ (1,144 ) $ (1,144 ) Other comprehensive income before reclassifications, net of tax of $268 thousand 640 640 Amounts reclassified from accumulated other comprehensive loss — — Other comprehensive income, net of tax of $268 thousand 640 640 Ending balance as of June 30, 2019 $ (504 ) $ (504 ) (1) This balance consists of the $48 thousand net gain on sale of available for sale debt securities included in our consolidated statement of operations offset by $97 thousand included in our consolidated statement of shareholders' equity as an adjustment to our beginning retained earnings. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments To meet the financing needs of our customers in the normal course of business, we are a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. At June 30, 2019 and December 31, 2018 , we were committed to fund certain loans including letters of credit amounting to approximately $317 million and $302 million , respectively. The contractual amounts of a credit-related financial instrument, such as a commitment to extend credit, a credit-card arrangement or a letter of credit, represent the amount of potential accounting loss should the commitment be fully drawn upon, the customer were to default, and the value of any existing collateral securing the customer’s payment obligation becomes worthless. The loss reserve for unfunded loan commitments was $350 thousand at both June 30, 2019 and December 31, 2018 . As a result, we use the same credit policies in making commitments to extend credit and conditional obligations as we do for on-balance sheet instruments. Commitments generally have fixed expiration dates; however, since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis, using the same credit underwriting standards that are employed in making commercial loans. The amount of collateral obtained, if any, upon an extension of credit is based on our evaluation of the creditworthiness of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, residential real estate and income-producing commercial properties. Borrowings At June 30, 2019 and December 31, 2018 , our borrowings and contractual obligations consisted of the following: (Dollars in thousands) June 30, 2019 December 31, 2018 FHLB advances—short-term $ 40,000 $ 40,000 FHLB advances—long-term — — Total $ 40,000 $ 40,000 The table below sets forth the amounts of, the interest rates we pay on, and the maturity dates of these FHLB borrowings. These borrowings had a weighted-average annualized interest rate of 2.50% for the six months ended June 30, 2019 . Principal Amounts Interest Rate Maturity Dates (Dollars in thousands) 10,000 2.64 % July 15, 2019 10,000 2.63 % September 4, 2019 10,000 2.52 % November 29, 2019 10,000 2.19 % December 26, 2019 At June 30, 2019 , $386 million of loans were pledged to support our FHLB borrowings and our unfunded borrowing capacity. As of June 30, 2019 , we had unused borrowing capacity of $229 million with the FHLB. The highest amount of borrowings outstanding at any month-end during the three months ended June 30, 2019 was $40 million . At June 30, 2019 and December 31, 2018 , commercial and consumer loans of $219 million and $51 million , respectively, were pledged to secure borrowings from the FRB to support our unfunded borrowing capacity of $159 million . As of December 31, 2018 , we had $40.0 million of outstanding short-term borrowings and no outstanding long-term borrowings that we had obtained from the FHLB. These borrowings had a weighted-average annualized interest rate of 2.54% for the year ended December 31, 2018 . As of December 31, 2018 , we had unused borrowing capacity of $365 million with the FHLB. The highest amount of borrowings outstanding at any month-end during the year ended December 31, 2018 was $40.9 million . Litigation, Claims and Assessments We are a defendant in or a party to a number of legal actions or proceedings that arise in the ordinary course of business. In some of these actions and proceedings, claims for monetary damages are asserted against us. In accordance with applicable accounting guidance, we establish an accrued liability for lawsuits or other legal proceedings when they present loss contingencies that are both probable and estimable. We estimate any potential loss based upon currently available information and significant judgments and a variety of assumptions, and known and unknown uncertainties. Moreover, the facts and circumstances on which such estimates are based will change over time. Therefore, the amount of any losses we might incur in any lawsuits or other legal proceedings may exceed amounts which we had accrued based on our estimates and those estimates do not represent the maximum loss exposure that we may have in connection with any lawsuits or other legal proceedings. In December 2016, following an ongoing review related to alleged discriminatory practices within our discontinued mortgage banking business, we received notice that the U.S. Department of Justice (“DOJ”) had authorized a potential enforcement action against the Bank. During the year ended December 31, 2018, we settled this matter with the DOJ for $1.0 million , which we have fully accrued and funded as of June 30, 2019 . Based on our evaluation of the remaining lawsuits and other proceedings that were pending against us as of June 30, 2019 , the outcomes in those suits or other proceedings are not expected to have, either individually or in the aggregate, a material adverse effect on our consolidated financial position, results of operations or cash flows. However, in light of the inherent uncertainties involved, some of which are beyond our control, and the very large or indeterminate damages often sought in such legal actions or proceedings, an adverse outcome in one or more of these suits or proceedings could be material to our results of operations or cash flows for any particular reporting period. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We have one reportable business segment, commercial banking. The commercial banking segment provides small and medium-size businesses, professional firms and individuals with a diversified range of products and services such as various types of deposit accounts, various types of commercial and consumer loans, cash management services, and online banking services. Since our operating segment derives all of its revenues from interest and noninterest income and interest expense constitutes its most significant expense, this segment is reported below using net interest income (interest income less interest expense) and noninterest income (primarily net gains on sales of small business administration loans and fee income). We do not allocate general and administrative expenses or income taxes to our operating segment. The following table sets forth information regarding the net interest income and noninterest income for our commercial banking segment for the three and six months ended June 30, 2019 and 2018 . (Dollars in thousands) Commercial Other (1) Total Net interest income for the three months ended June 30, 2019 $ 12,449 $ (230 ) $ 12,219 2018 $ 11,849 $ 598 $ 12,447 Noninterest income for the three months ended June 30, 2019 $ 1,379 $ 7 $ 1,386 2018 $ 1,130 $ 6 $ 1,136 Net interest income for the six months ended June 30, 2019 $ 24,733 $ (463 ) $ 24,270 2018 $ 23,449 $ 1,183 $ 24,632 Noninterest income for the six months ended June 30, 2019 $ 2,862 $ 14 $ 2,876 2018 $ 2,179 $ 12 $ 2,191 Segment Assets at: June 30, 2019 $ 1,418,304 $ 813 $ 1,419,117 December 31, 2018 $ 1,349,097 $ 241 $ 1,349,338 (1) Represents net interest income and noninterest income for PMAR and PMBC. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital | Regulatory Capital Under federal banking regulations that apply to all United States-based bank holding companies over $3 billion in total assets and all federally insured banks, the Bank (on a stand-alone basis) must meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. The Company (on a consolidated basis) is below the reporting threshold of $3 billion in total assets and therefore is not subject to the same capital adequacy requirements. Under those regulations, each federally insured bank is determined by its primary federal bank regulatory agency to come within one of the following capital adequacy categories on the basis of its capital ratios: • well-capitalized • adequately capitalized • undercapitalized • significantly undercapitalized; or • critically undercapitalized Certain qualitative assessments also are made by a banking institution’s primary federal regulatory agency that could lead the agency to determine that the banking institution should be assigned to a lower capital category than the one indicated by the quantitative measures used to assess the institution’s capital adequacy. At each successive lower capital category, a banking institution is subject to greater operating restrictions and increased regulatory supervision by its federal bank regulatory agency. The following table sets forth the capital and capital ratios of the Bank (on a stand-alone basis) at June 30, 2019 , as compared to the regulatory requirements applicable to it. Applicable Federal Regulatory Requirement For Capital Adequacy Purposes To be Categorized As Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) Total Capital to Risk Weighted Assets 166,176 13.5 % 121,467 At least 8.625 $ 123,269 At least 10.0 Common Equity Tier 1 Capital to Risk Weighted Assets 154,352 12.5 % 63,175 At least 5.125 $ 80,125 At least 6.5 Tier 1 Capital to Risk Weighted Assets 154,352 12.5 % 81,665 At least 6.625 $ 98,615 At least 8.0 Tier 1 Capital to Average Assets 154,352 11.0 % 56,332 At least 4.0 $ 70,416 At least 5.0 In early July 2013, the Federal Reserve Board and the FDIC issued final rules implementing the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revise minimum capital requirements and adjust prompt correct action thresholds. The final rules revise the regulatory capital elements, add a new common equity Tier 1 capital ratio, increase the minimum Tier 1 capital ratio requirement, and implement a new capital conservation buffer. The rules also permit certain banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. The final rules took effect for community banks on January 1, 2015, subject to a transition period for certain parts of the rules. At June 30, 2019 , the Bank (on a stand-alone basis) continued to qualify as a well-capitalized institution under the capital adequacy guidelines described above. |
Significant Accounting Polici_2
Significant Accounting Policies - (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Interim Consolidated Financial Statements Basis of Presentation | Interim Consolidated Financial Statements Basis of Presentation Our interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in effect in the United States (“GAAP”) for interim financial information pursuant to rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), including instructions to Form 10-Q and Article 10 of Regulation S-X, on a basis consistent with prior periods. Our financial statements reflect all adjustments that are, in the opinion of management, necessary to present a fair statement of the results for the interim periods presented. The interim results are not necessarily indicative of operating results for the full year. The interim information should be read in conjunction with our audited consolidated financial statements in our Form 10-K. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires us to make certain estimates and assumptions that could affect the reported amounts of certain of our assets, liabilities, and contingencies at the date of the financial statements and the reported amounts of our revenues and expenses during the reporting periods. For the fiscal periods covered by this report, those estimates related primarily to our determinations of the allowance for loan and lease losses (“ALLL”), the fair values of securities available for sale, and the determination of the valuation allowance pertaining to deferred tax assets. If circumstances or financial trends on which those estimates were based were to change in the future or there were to occur any currently unanticipated events affecting the amounts of those estimates, our future financial position or results of operations could differ, possibly materially, from those expected at the current time. |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements for the three and six months ended June 30, 2019 and 2018 include the accounts of PMBC, the Bank and PMAR; PMAR was liquidated during the third quarter of 2018. All significant intercompany balances and transactions were eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” which requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability measured on a discounted basis and a right-of-use asset a specified asset for the lease term. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged and the accounting for sale and leaseback transactions were simplified. We elected most of the new standard’s available transition practical expedients. The new standard had a material effect on our financial statements. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our office and equipment operating leases; and (2) providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we did not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides an additional transition method upon adoption of ASU 2016-02. The guidance allows an entity to apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to beginning retained earnings in the period of adoption. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842): Codification Improvements,” which provides additional guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers, requires lessors that are banking institutions to present all "principal payments received under leases" within investing activities, and exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. On adoption of these accounting standards, we recognized additional operating liabilities of $11.1 million , with corresponding ROU assets of the same or less amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. We recorded a $207 thousand adjustment to our beginning retained earnings. This guidance is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. We adopted this guidance on January 1, 2019. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the measurement of all expected credit losses for financial assets held at the reporting date, based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions will now use forward-looking information to better inform their credit loss estimates. Additionally, the ASU amends the accounting guidance for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual periods beginning after December 15, 2018. We plan to adopt this guidance on January 1, 2020 and expect that it will have a material impact on the determination of our ALLL. We are unable to estimate the expected impact to the ALLL upon adoption due to various factors, primarily the fine tuning of our qualitative assumptions used within our preliminary model, uncertainty regarding economic conditions and the size and mix of our loan portfolio at the time of adoption, which could impact our historical loss factors. We are currently working with our existing ALLL software provider on further developing the model to perform the ALLL calculations upon adoption and we believe that we currently have in place the internal team capable of handling this implementation. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement,” which amends the disclosure requirements related to fair value. The guidance removes disclosure related to transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of these transfers and the valuation processes for Level 3 fair value measurements. Additional disclosures required as a result of adoption of this ASU will include the change in Level 3 unrealized gains and losses included in other comprehensive income and the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. This guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosure requirements until their effective date. We are currently evaluating this guidance to determine the date of adoption and impact on the Company. |
Fair Value Measurements | Fair Value Measurements Under FASB Accounting Standards Codification (“ASC”) 820-10, we group assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Risks with Fair Value Measurements Fair value estimates are made at a discrete point in time based on relevant market information and other information about the financial instruments. Because no active market exists for a significant portion of our financial instruments, fair value estimates are based in large part on judgments we make primarily regarding current economic conditions, risk characteristics of various financial instruments, prepayment rates, and future expected loss experience. These estimates are subjective in nature and invariably involve some inherent uncertainties. Additionally, the occurrence of unexpected events or changes in circumstances can occur that could require us to make changes to our assumptions and which, in turn, could significantly affect and require us to make changes to our previous estimates of fair value. In addition, the fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of existing and anticipated future customer relationships and the value of assets and liabilities that are not considered financial instruments, such as premises and equipment and other real estate owned (“OREO”). Measurement Methodology Cash and Cash Equivalents. The fair value of cash and cash equivalents approximates its carrying value. Interest-Bearing Deposits with Financial Institutions. The fair values of interest-bearing deposits maturing within one year approximate their carrying values. FHLB and FRBSF Stock. The Bank is a member of the Federal Home Loan Bank of San Francisco (“FHLB”) and the FRBSF. As members, we are required to own stock of the FHLB and the FRBSF, the amount of which is based primarily on the level of our borrowings from those institutions. We also have the right to acquire additional shares of stock in either or both of the FHLB and the FRBSF. During the three and six months ended June 30, 2019 , we purchased no FHLB or FRBSF stock. No shares of FHLB stock or FRBSF stock were called during the three and six months ended June 30, 2019 . The fair values of the FHLB and FRBSF stock are equal to their respective carrying amounts, are classified as restricted securities and are periodically evaluated for impairment based on our assessment of the ultimate recoverability of our investments in that stock. Any cash or stock dividends paid to us on such stock are reported as income. Investment Securities Available for Sale. Fair value measurement for our investment securities available for sale is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 investment securities include those traded on an active exchange, such as the New York Stock Exchange, and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 investment securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Equity Investments Without Readily Determinable Fair Value . Equity investments without readily determinable fair value are accounted for under the measurement alternative method of accounting. These investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any cash or stock dividends paid to us on such investments are reported as noninterest income. Impaired Loans . Loans measured for impairment are measured at an observable market price (if available), or the fair value of the loan’s collateral (if the loan is collateral dependent). The fair value of an impaired loan may be estimated using one of several methods, including collateral value, market value of similar debt, liquidation value and discounted cash flows. Those impaired loans not requiring a specific loan loss reserve represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. When the fair value of the collateral is based on an observable market price or a current appraised value, we record the impaired loan at Level 2. When an appraised value is not available or we determine that the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we record the impaired loan at Level 3. Loans . The fair value for loans with variable interest rates less a credit discount is the carrying amount. The fair value of fixed rate loans is derived by calculating the present value of expected future cash flows discounted at the loan’s original interest rate by the various homogeneous categories of loans. All loans have been adjusted to reflect changes in credit risk and represent the exit price of the loans. Changes are not recorded directly as an adjustment to current earnings or comprehensive income, but rather as an adjustment component in determining the overall adequacy of the loan loss reserve. Other Real Estate Owned. OREO is reported at its net realizable value (fair value less estimated costs to sell) at the time any real estate collateral is acquired by the Bank in satisfaction of a loan. Subsequently, OREO is carried at the lower of carrying value or fair value less estimated costs to sell. Fair value is determined based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, we record the foreclosed asset at Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we record the foreclosed asset at Level 3. Other Foreclosed Assets. Other foreclosed assets are reported at their net realizable value (fair value less estimated costs to sell) at the time any collateral other than real estate is acquired by the Bank in satisfaction of a loan. Subsequently, other foreclosed assets are carried at the lower of carrying value or fair value less estimated costs to sell. Fair value is determined based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, we record the foreclosed asset at Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we record the foreclosed asset at Level 3. Deposits. Deposits are carried at historical cost. The carrying amounts of deposits from savings and money market accounts are deemed to approximate fair value as they either have no stated maturities or short-term maturities. Certificates of deposit are estimated utilizing discounted cash flow techniques. The interest rates applied are rates currently being offered for similar certificates of deposit. Borrowings. The fair value of borrowings is the carrying amount for those borrowings that mature on a daily basis. The fair value of term borrowings is derived by calculating the discounted value of future cash flows expected to be paid out by the Company. We classify our borrowings in Level 2 of the fair value hierarchy. Junior Subordinated Debentures. The fair value of the junior subordinated debentures is based on quoted market prices of the underlying securities. These securities are variable rate in nature and repriced quarterly. We classify our junior subordinated debentures in Level 2 of the fair value hierarchy. Commitments to Extend Credit and Standby Letters of Credit. The fair value of commitments to extend credit and standby letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Interest Receivable and Interest Payable. The carrying amounts of our accrued interest receivable and accrued interest payable are deemed to approximate fair value. |
Fair Value Measurements - (Tabl
Fair Value Measurements - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 : At June 30, 2019 (Dollars in thousands) Total Level 1 Level 2 Level 3 Assets at Fair Value: Debt securities available for sale U.S. Treasury securities $ 1,996 $ — $ 1,996 $ — Commercial mortgage backed securities issued by U.S. Agencies 4,586 — 4,586 — Residential mortgage backed securities issued by U.S. agencies 21,811 — 21,811 — Total debt securities available for sale at fair value $ 28,393 $ — $ 28,393 $ — At December 31, 2018 (Dollars in thousands) Total Level 1 Level 2 Level 3 Assets at Fair Value: Debt securities available for sale U.S. Treasury securities $ 2,980 $ — $ 2,980 $ — Commercial mortgage backed securities issued by U.S. Agencies 4,534 — 4,534 — Residential mortgage backed securities issued by U.S. agencies 23,717 — 23,717 — Total debt securities available for sale 31,231 — 31,231 — |
Assets Measured at Fair Value on Nonrecurring Basis | Information regarding assets measured at fair value on a nonrecurring basis is set forth in the table below. At June 30, 2019 At December 31, 2018 (Dollars in thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets at Fair Value: Impaired loans $ 1,344 $ — $ — $ 1,344 $ 4,226 $ — $ — $ 4,226 Other foreclosed assets 82 — 82 — 91 — 91 — Other real estate owned — — — — 1,173 — 1,173 — Total $ 1,426 $ — $ 82 $ 1,344 $ 5,490 $ — $ 1,264 $ 4,226 |
Summary of Significant Unobservable Inputs and Valuation Techniques | For our fair value measurements classified in Level 3 of the fair value hierarchy as of June 30, 2019 , a summary of the significant unobservable inputs and valuation techniques is as follows: Fair Value Measurement as of June 30, 2019 Valuation Techniques (2) Unobservable Inputs (2) Range Weighted Average (Dollars in thousands) Assets Impaired loans $ 1,344 Third-Party Pricing Discounted cash flow N/A (1) N/A (1) (1) As part of our process, we obtain appraisals for our various properties included within impaired loans which primarily rely upon market comparisons. These market comparisons support our assumption that the carrying value of the respective loans either requires or does not require additional impairment. (2) As of June 30, 2019 , there has been no change to our valuation techniques or the types of unobservable inputs used in the calculation of fair value from December 31, 2018. |
Estimated Fair Values and Amounts of Financial Instruments | The table below provides estimated fair values and related carrying amounts of our financial instruments as of June 30, 2019 and December 31, 2018 , excluding financial assets and liabilities which are recorded at fair value on a recurring basis. Estimated Fair Value At June 30, 2019 At December 31, 2018 Carrying Value Total Level 1 Level 2 Level 3 Carrying Value Total Level 1 Level 2 Level 3 (Dollars in thousands) Financial assets: Cash and cash equivalents $ 265,241 $ 265,241 $ 265,241 $ — $ — $ 187,718 $ 187,718 187,718 — — Interest-bearing deposits with financial institutions 2,420 2,420 2,420 — — 2,420 2,420 2,420 — — Federal Reserve Bank of San Francisco and Federal Home Loan Bank stock 7,910 7,910 7,910 — — 8,822 8,822 8,822 — — Loans, net 1,077,595 1,070,951 — — 1,070,951 1,083,240 1,066,147 — — 1,066,147 Accrued interest receivable 4,365 4,365 4,365 — — 4,003 4,003 4,003 — — Financial liabilities: Noninterest bearing deposits 378,063 378,063 378,063 — — 340,406 340,406 340,406 — — Interest-bearing deposits 821,567 822,553 — 822,553 — 795,596 794,321 — 794,321 — Borrowings 40,000 40,018 — 40,018 — 40,000 39,976 — 39,976 — Junior subordinated debentures 17,527 17,527 — 17,527 — 17,527 17,527 — 17,527 — Accrued interest payable 497 497 497 — — 361 361 361 — — |
Investments - (Tables)
Investments - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Major Components of Securities Available for Sale and Comparison of Amortized Cost, Estimated Fair Market Values, and Gross Unrealized Gains and Losses | The following table sets forth the major components of securities available for sale and compares the amortized costs and estimated fair market values of, and the gross unrealized gains and losses on, these securities at June 30, 2019 and December 31, 2018 : (Dollars in thousands) June 30, 2019 December 31, 2018 Amortized Cost Gross Unrealized Estimated Fair Value Amortized Cost Gross Unrealized Estimated Fair Value Gain Loss Gain Loss Securities Available for Sale U.S. Treasury securities $ 1,999 $ — $ (3 ) $ 1,996 $ 2,999 $ — $ (19 ) $ 2,980 Commercial mortgage backed securities issued by U.S. Agencies (1) 4,428 158 — 4,586 4,495 40 (1 ) 4,534 Residential mortgage backed securities issued by U.S. Agencies (2) 22,060 2 (251 ) 21,811 24,739 1 (1,023 ) 23,717 Total $ 28,487 $ 160 $ (254 ) $ 28,393 $ 32,233 $ 41 $ (1,043 ) $ 31,231 (1) Secured by first liens on commercial apartment building mortgages. (2) Secured by closed-end first liens on 1-4 family residential mortgages. |
Amortized Cost and Estimated Fair Values of Securities Available for Sale by Contractual Maturities and Historical Prepayments based on Prior Twelve Months of Principal Payments | The amortized cost and estimated fair values of securities available for sale at June 30, 2019 and December 31, 2018 are shown in the tables below by contractual maturities taking into consideration historical prepayments based on the prior twelve months of principal payments. Expected maturities will differ from contractual maturities and historical prepayments, particularly with respect to collateralized mortgage obligations, primarily because prepayment rates are affected by changes in conditions in the interest rate market and, therefore, future prepayment rates may differ from historical prepayment rates. At June 30, 2019 Maturing in (Dollars in thousands) One year or less Over one year through five years Over five years through ten years Over ten Years Total Securities available for sale, amortized cost $ 7,055 $ 12,948 $ 7,305 $ 1,179 $ 28,487 Securities available for sale, estimated fair value 7,018 12,807 7,345 1,223 28,393 Weighted average yield 1.47 % 1.60 % 2.21 % 3.26 % 1.79 % At December 31, 2018 Maturing in (Dollars in thousands) One year or less Over one year through five years Over five years through ten years Over ten Years Total Securities available for sale, amortized cost $ 7,874 $ 13,466 $ 9,971 $ 922 $ 32,233 Securities available for sale, estimated fair value 7,663 12,934 9,710 924 31,231 Weighted average yield 1.46 % 1.62 % 2.22 % 3.13 % 1.81 % |
Gross Unrealized Losses and Fair Values of Investments | The tables below indicate, as of June 30, 2019 and December 31, 2018 , the gross unrealized losses and fair values of our investments, aggregated by investment category, and length of time that the individual securities have been in a continuous unrealized loss position. Securities with Unrealized Loss at June 30, 2019 Less than 12 months 12 months or more Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury securities $ — $ — $ 1,996 $ (3 ) $ 1,996 $ (3 ) Commercial mortgage backed securities issued by U.S. Agencies — — — — — — Residential mortgage backed securities issued by U.S. Agencies — — 19,487 (251 ) 19,487 (251 ) Total $ — $ — $ 21,483 $ (254 ) $ 21,483 $ (254 ) Securities with Unrealized Loss at December 31, 2018 Less than 12 months 12 months or more Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury securities $ — $ — $ 2,980 $ (19 ) $ 2,980 $ (19 ) Commercial mortgage backed securities issued by U.S. Agencies 999 (1 ) — — 999 (1 ) Residential mortgage backed securities issued by U.S. Agencies 361 (3 ) 23,299 (1,020 ) 23,660 (1,023 ) Total $ 1,360 $ (4 ) $ 26,279 $ (1,039 ) $ 27,639 $ (1,043 ) |
Schedule of Other Investments | As of June 30, 2019 and December 31, 2018 , our equity investments without readily determinable fair value were as follows: June 30, 2019 December 31, 2018 (Dollars in thousands) Equity investments without readily determinable fair value $ 2,117 $ 1,240 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan and Lease Losses - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The loan portfolio consisted of the following at: June 30, 2019 December 31, 2018 (Dollars in thousands) Amount Percent Amount Percent Commercial loans $ 441,850 40.7 % $ 444,441 40.7 % Commercial real estate loans – owner occupied 214,233 19.7 % 211,645 19.3 % Commercial real estate loans – all other 221,437 20.4 % 226,441 20.7 % Residential mortgage loans – multi-family 83,966 7.7 % 97,173 8.9 % Residential mortgage loans – single family 21,294 2.0 % 21,176 1.9 % Construction and land development loans 12,230 1.1 % 38,496 3.5 % Consumer loans 91,442 8.4 % 54,514 5.0 % Gross loans 1,086,452 100.0 % 1,093,886 100.0 % Deferred fee (income) costs, net 2,617 2,860 Allowance for loan and lease losses (11,474 ) (13,506 ) Loans, net $ 1,077,595 $ 1,083,240 |
Allowance for Loan Losses and Loan Balances | Set forth below is a summary of the activity in the ALLL, by portfolio type, during the three and six months ended June 30, 2019 and 2018: (Dollars in thousands) Commercial Real Estate Construction and Land Development Consumer and Single Family Mortgages Unallocated Total ALLL in the three months ended June 30, 2019: Balance at beginning of period $ 6,895 $ 2,709 $ 295 $ 1,486 $ 129 $ 11,514 Charge offs (103 ) — — (24 ) — (127 ) Recoveries 82 — — 5 — 87 Provision (65 ) 81 (176 ) 289 (129 ) — Balance at end of period $ 6,809 $ 2,790 $ 119 $ 1,756 $ — $ 11,474 ALLL in the six months ended June 30, 2019: Balance at beginning of period $ 8,071 $ 3,643 $ 426 $ 1,290 $ 76 $ 13,506 Charge offs (5,772 ) — — (53 ) — (5,825 ) Recoveries 483 — — 10 — 493 Provision 4,027 (853 ) (307 ) 509 (76 ) 3,300 Balance at end of period $ 6,809 $ 2,790 $ 119 $ 1,756 $ — $ 11,474 ALLL in the three months ended June 30, 2018: Balance at beginning of period $ 7,634 $ 3,255 $ 888 $ 1,112 $ 516 $ 13,405 Charge offs (355 ) — — — — (355 ) Recoveries 288 — — 31 — 319 Provision (74 ) (302 ) (561 ) 435 502 — Balance at end of period $ 7,493 $ 2,953 $ 327 $ 1,578 $ 1,018 $ 13,369 ALLL in the six months ended June 30, 2018: Balance at beginning of period $ 9,155 $ 2,906 $ 650 $ 1,043 $ 442 $ 14,196 Charge offs (1,423 ) — — — — (1,423 ) Recoveries 560 — — 36 — 596 Provision (799 ) 47 (323 ) 499 576 — Balance at end of period $ 7,493 $ 2,953 $ 327 $ 1,578 $ 1,018 $ 13,369 Set forth below is information regarding loan balances and the related ALLL, by portfolio type, as of June 30, 2019 and December 31, 2018 . (Dollars in thousands) Commercial Real Estate Construction and Land Consumer Unallocated Total ALLL balance at June 30, 2019 related to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 6,809 2,790 119 1,756 — 11,474 Total $ 6,809 $ 2,790 $ 119 $ 1,756 $ — $ 11,474 Loans balance at June 30, 2019 related to: Loans individually evaluated for impairment $ 345 $ 782 $ — $ — $ — $ 1,127 Loans collectively evaluated for impairment 441,505 518,854 12,230 112,736 — 1,085,325 Total $ 441,850 $ 519,636 $ 12,230 $ 112,736 $ — $ 1,086,452 ALLL balance at December 31, 2018 related to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 8,071 3,643 426 1,290 76 13,506 Total $ 8,071 $ 3,643 $ 426 $ 1,290 $ 76 $ 13,506 Loans balance at December 31, 2018 related to: Loans individually evaluated for impairment $ 3,352 $ 831 $ — $ 43 $ — $ 4,226 Loans collectively evaluated for impairment 441,089 534,428 38,496 75,647 — 1,089,660 Total $ 444,441 $ 535,259 $ 38,496 $ 75,690 $ — $ 1,093,886 |
Summary of Delinquency Status of Loans by Portfolio Type | The following table provides a summary of the delinquency status of loans by portfolio type at June 30, 2019 and December 31, 2018 : (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Total Past Due Current Total Loans Outstanding Loans >90 Days and Accruing At June 30, 2019 Commercial loans $ 2,097 $ 3,237 $ — $ 5,334 $ 436,516 $ 441,850 $ — Commercial real estate loans – owner-occupied — — — — 214,233 214,233 — Commercial real estate loans – all other — — — — 221,437 221,437 — Residential mortgage loans – multi-family — — — — 83,966 83,966 — Residential mortgage loans – single family — — — — 21,294 21,294 — Construction and land development loans — — — — 12,230 12,230 — Consumer loans — — — — 91,442 91,442 — Total $ 2,097 $ 3,237 $ — $ 5,334 $ 1,081,118 $ 1,086,452 $ — At December 31, 2018 Commercial loans $ — $ 3,705 $ 4,273 $ 7,978 $ 436,463 $ 444,441 $ 1,278 Commercial real estate loans – owner-occupied — 831 — 831 210,814 211,645 — Commercial real estate loans – all other — — — — 226,441 226,441 — Residential mortgage loans – multi-family — — — — 97,173 97,173 — Residential mortgage loans – single family — — — — 21,176 21,176 — Construction and land development loans — — — — 38,496 38,496 — Consumer loans 13 — — 13 54,501 54,514 — Total $ 13 $ 4,536 $ 4,273 $ 8,822 $ 1,085,064 $ 1,093,886 $ 1,278 |
Loans on Nonaccrual Status by Portfolio Type | The following table provides information with respect to loans on nonaccrual status, by portfolio type, as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (Dollars in thousands) Nonaccrual loans: Commercial loans $ 467 $ 3,352 Commercial real estate loans – owner occupied 782 831 Consumer 95 43 Total (1) $ 1,344 $ 4,226 (1) Nonaccrual loans may include loans that are currently considered performing loans. |
Summary of Loans by Portfolio Type and Internal Credit Quality Ratings | The following table provides a summary of loans by portfolio type and our internal asset quality ratings as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (Dollars in thousands) Pass: Commercial loans $ 400,270 $ 428,287 Commercial real estate loans – owner occupied 207,740 205,914 Commercial real estate loans – all other 221,437 226,441 Residential mortgage loans – multi family 83,966 97,173 Residential mortgage loans – single family 21,294 21,176 Construction and land development loans 12,230 38,496 Consumer loans 91,347 54,415 Total pass loans $ 1,038,284 $ 1,071,902 Special Mention: Commercial loans $ 37,364 $ 10,411 Commercial real estate loans – owner occupied 5,712 4,900 Total special mention loans $ 43,076 $ 15,311 Substandard: Commercial loans $ 4,216 $ 5,743 Commercial real estate loans – owner occupied 782 831 Consumer loans 94 99 Total substandard loans $ 5,092 $ 6,673 Doubtful: Total doubtful loans $ — $ — Total Loans: $ 1,086,452 $ 1,093,886 |
Schedule of Impaired Loans | The table below contains additional information with respect to impaired loans, by portfolio type, as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance (1) Recorded Investment Unpaid Principal Balance Related Allowance (1) (Dollars in thousands) No allowance recorded: Commercial loans $ 467 $ 732 $ — $ 3,352 $ 4,516 $ — Commercial real estate loans – owner occupied 782 903 — 831 925 — Consumer loans 95 126 — 43 65 — Total 1,344 1,761 — 4,226 5,506 — With allowance recorded: Total — — — — — — Total Commercial loans $ 467 $ 732 $ — $ 3,352 $ 4,516 $ — Commercial real estate loans – owner occupied 782 903 — 831 925 — Consumer loans 95 126 — 43 65 — Total 1,344 1,761 — 4,226 5,506 — (1) When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, then specific reserves are not required to be set aside for the loan within the ALLL. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the balance of the principal outstanding. The following table sets forth information regarding impaired loans, at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (Dollars in thousands) Impaired loans: Nonaccruing loans $ 1,344 $ 4,226 Nonaccruing restructured loans (1) — — Accruing restructured loans (1)(2) — — Total impaired loans $ 1,344 $ 4,226 Impaired loans less than 90 days delinquent and included in total impaired loans $ 1,344 $ 1,232 (1) As of June 30, 2019 and December 31, 2018, we had no restructured loans. (2) See “ Troubled Debt Restructurings ” below for a description of accruing restructured loans at June 30, 2019 and December 31, 2018. Average balances and interest income recognized on impaired loans, by portfolio type, for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized (Dollars in thousands) No allowance recorded: Commercial loans $ 471 $ — $ 4,408 $ — $ 1,432 $ — $ 4,013 $ 62 Commercial real estate loans – owner occupied 794 — 871 — 806 — 879 — Commercial real estate loans – all other — — 739 — — — 1,016 — Residential mortgage loans – single family — — — — — — 57 — Consumer loans 67 — 52 — 59 — 53 — Total 1,332 — 6,070 — 2,297 — 6,018 62 With allowance recorded: Commercial loans — — 193 — — — 279 — Total — — 193 — — — 279 — Total Commercial loans 471 — 4,601 — 1,432 — 4,292 62 Commercial real estate loans – owner occupied 794 — 871 — 806 — 879 — Commercial real estate loans – all other — — 739 — — — 1,016 — Residential mortgage loans – single family — — — — — — 57 — Consumer loans 67 — 52 — 59 — 53 — Total $ 1,332 $ — $ 6,263 $ — $ 2,297 $ — $ 6,297 $ 62 |
Leases - (Tables)
Leases - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Summary of Lease Cost and Payments | During the six months ended June 30, 2019 , we had the following cash and non-cash activities associated with our leases: Six Months Ended June 30, 2019 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases (fixed payments) $ 1,113 Non-cash activities: Right-of-use assets obtained in exchange for new operating lease liabilities $ 9,919 During the three and six months ended June 30, 2019 , we recognized rent expense associated with our leases as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Lease cost (Dollars in thousands) Finance lease cost: Operating lease cost 568 $ 1,113 Short-term lease cost (1) 29 81 Total lease cost $ 597 $ 1,194 Weighted-average remaining lease term—operating leases (in years) 5.57 (1) Includes leases that are less than 12 months and equipment leases that are accounted for on a cash basis. |
Summary of Lease Assets and Liabilities | Supplemental balance sheet information related to leases was as follows: Financial Statement Classification June 30, 2019 (Dollars in thousands) Operating right-of-use assets Other assets $ 9,499 Operating lease liabilities Other liabilities $ 10,020 |
Summary of Maturity of Lease Liabilities | Maturities of operating lease liabilities as of June 30, 2019 are as follows: (Dollars in thousands) For the years ending December 31, Remainder of 2019 956 2020 1,921 2021 1,712 2022 1,768 2023 1,823 2024 and beyond 2,530 Total 10,710 Less: Imputed interest 690 Total Lease liabilities 10,020 |
Stock-Based Employee Compensa_2
Stock-Based Employee Compensation Plans - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Weighted Average Assumptions used to Determine Fair Values of Options Granted | The table below summarizes the weighted average assumptions used to determine the fair values of the options granted during the following periods: Three Months Ended June 30, Six Months Ended June 30, Assumptions with respect to: 2019 (1) 2018 (1) 2019 2018 Expected volatility — % — % — % 30 % Risk-free interest rate — % — % — % 2.69 % Expected dividends — % — % — % — % Expected term (years) 0.0 0.0 0.0 5.8 Weighted average fair value of options granted during period $ — $ — $ — $ 2.81 (1) No stock options were granted during the three and six months ended June 30, 2019 or during the three months ended June 30, 2018. |
Stock Option Activity under Plans | The following table summarizes the stock option activity under the Company’s equity incentive plans during the six months ended June 30, 2019 and 2018 , respectively. Number of Shares Weighted- Average Exercise Price Per Share Number of Shares Weighted- Average Exercise Price Per Share 2019 2018 Outstanding – January 1, 864,330 $ 6.86 792,577 $ 6.41 Granted — — 154,011 8.20 Exercised (15,000 ) 5.30 (75,108 ) 4.95 Forfeited/Canceled (6,884 ) 8.13 (7,150 ) 6.47 Outstanding – June 30, 842,446 6.88 864,330 6.86 Options Exercisable – June 30, 721,420 $ 6.68 585,482 $ 6.49 Options Vested – June 30, 721,420 $ 6.68 585,482 $ 6.49 |
Additional Information Regarding Vested and Unvested Options Outstanding | The following table provides additional information regarding the vested and unvested options that were outstanding at June 30, 2019 . Options Outstanding as of June 30, 2019 Options Exercisable (1) Exercise Price Vested Unvested Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Shares Weighted Average Exercise Price Per Share $2.97 – $3.99 18,003 — $ 3.48 1.95 18,003 $ 3.48 $4.00 – $5.99 16,000 — 4.34 1.80 16,000 4.34 $6.00– $6.99 478,435 16,552 6.61 5.00 478,435 6.60 $7.00– $7.99 161,129 — 7.08 6.27 161,129 7.08 $8.00-$8.40 47,853 104,474 8.19 8.63 47,853 8.18 721,420 121,026 $ 6.88 5.77 721,420 $ 6.68 (1) The weighted average remaining contractual life of the options that were exercisable as of June 30, 2019 was 5.34 years. |
Summary of Status of Unvested Options and Changes in Number of Shares Subject to and in Weighted Average Grant Date Fair Values of Unvested Options | A summary of the status of the unvested options outstanding as of June 30, 2019 and 2018 , and changes in the weighted average grant date fair values of the unvested options during the six months ended June 30, 2019 and 2018 , are set forth in the following table. For the six months ended June 30, 2019 2018 Number of Shares Subject to Options Weighted Average Grant Date Fair Value Per Share Number of Weighted Unvested at the beginning of the period 275,457 $ 2.79 255,348 $ 2.80 Granted — — 154,011 2.81 Vested (147,687 ) 2.79 (123,361 ) 2.83 Forfeited/Canceled (6,744 ) 2.83 (7,150 ) 2.66 Unvested at the end of the period 121,026 2.79 278,848 2.79 |
Schedule of Restricted Stock Activity | The following table summarizes the activity related to restricted stock granted, vested and forfeited under our equity incentive plans during the six months ended June 30, 2019 and 2018 . For the six months ended June 30, 2019 2018 Number of Shares Average Grant Date Fair Value Per Share Number of Shares Average Grant Date Fair Value Per Share Outstanding at the beginning of the period 115,031 $ 8.04 103,508 $ 7.33 Granted 123,896 8.59 75,417 8.19 Vested (61,337 ) 7.78 (62,564 ) 7.26 Forfeited (7,376 ) 8.77 (4,690 ) 7.55 Outstanding at the end of the period 170,214 $ 8.50 111,671 $ 7.94 |
Compensation Expense of Non-Vested Stock Options Outstanding | We expect that the compensation expense that will be recognized during the periods presented below in respect of stock options and restricted stock outstanding at June 30, 2019 , will be as follows: Estimated Stock Based Compensation Expense Stock Options Estimated Stock Based Compensation Expense Restricted Stock Estimated Stock Based Compensation Expense Total (Dollars in thousands) For the years ending December 31, Remainder of 2019 $ 74 $ 284 $ 358 2020 151 475 626 2021 44 352 396 2022 17 101 118 2023 and beyond 2 48 50 $ 288 $ 1,260 $ 1,548 |
Earnings Per Share ("EPS") - (T
Earnings Per Share ("EPS") - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table shows how we computed basic and diluted EPS for the three and six months ended June 30, 2019 and 2018 . (In thousands, except per share data) For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Basic EPS: Net income $ 2,728 $ 15,369 $ 3,610 $ 19,076 Less dividends on preferred stock — — — — Less dividends on common stock — — — — Less dividends on unvested shares — — — — Net income allocable to common shareholders $ 2,728 $ 15,369 $ 3,610 $ 19,076 Less earnings allocated to participating securities 102 78 191 94 Earnings allocated to common shareholders $ 2,626 $ 15,291 $ 3,419 $ 18,982 Weighted average common shares outstanding 22,620 23,213 22,224 23,185 Basic earnings per common share $ 0.12 $ 0.66 $ 0.15 $ 0.82 Diluted EPS: Earnings allocated to common shareholders $ 2,728 $ 15,369 $ 3,610 $ 19,076 Weighted average common shares outstanding 22,620 23,213 22,224 23,185 Add dilutive effects of restricted stock grants 170 119 154 114 Add dilutive effects for assumed conversion of Series A preferred stock 710 — 1,086 — Add dilutive effect for stock options 116 226 117 203 Weighted average diluted common shares outstanding 23,616 23,558 23,581 23,502 Diluted earnings per common share $ 0.12 $ 0.65 $ 0.15 $ 0.81 (1) The basic and diluted earnings per share amounts for the three and six months ended June 30, 2019 and 2018 are the same under both the Treasury Stock Method and the Two-Class Method as prescribed in FASB ASC 260-10, Earnings Per Share . |
Antidilutive Securities Excluded from Earnings Per Share | The weighted average shares that have an antidilutive effect in the calculation of diluted net income per share and have been excluded from the computations above were as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Stock options (1) 183,724 157,711 184,275 113,971 (1) Represents stock options that were excluded from the computation of diluted earnings per common share for the three and six months ended June 30, 2019 and 2018 as a result of the shares being “out-of-the-money.” |
Shareholders' Equity - (Tables)
Shareholders' Equity - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss), net | Accumulated other comprehensive income (loss), net as of June 30, 2019 and December 31, 2018 was as follows: Unrealized Gain (Loss) on Securities Available-for-Sale, net of tax Accumulated Other Comprehensive Income (Loss), Net (Dollars in thousands) Ending balance as of December 31, 2017 $ (1,143 ) $ (1,143 ) Other comprehensive income before reclassifications, net of tax of $142 thousand (50 ) (50 ) Amounts reclassified from accumulated other comprehensive loss (1) 49 49 Other comprehensive loss, net of tax of $142 thousand (1 ) (1 ) Ending balance as of December 31, 2018 $ (1,144 ) $ (1,144 ) Other comprehensive income before reclassifications, net of tax of $268 thousand 640 640 Amounts reclassified from accumulated other comprehensive loss — — Other comprehensive income, net of tax of $268 thousand 640 640 Ending balance as of June 30, 2019 $ (504 ) $ (504 ) (1) This balance consists of the $48 thousand net gain on sale of available for sale debt securities included in our consolidated statement of operations offset by $97 thousand included in our consolidated statement of shareholders' equity as an adjustment to our beginning retained earnings. |
Commitments and Contingencies -
Commitments and Contingencies - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Borrowings and Contractual Obligations | At June 30, 2019 and December 31, 2018 , our borrowings and contractual obligations consisted of the following: (Dollars in thousands) June 30, 2019 December 31, 2018 FHLB advances—short-term $ 40,000 $ 40,000 FHLB advances—long-term — — Total $ 40,000 $ 40,000 |
Schedule of FHLB Borrowings | The table below sets forth the amounts of, the interest rates we pay on, and the maturity dates of these FHLB borrowings. These borrowings had a weighted-average annualized interest rate of 2.50% for the six months ended June 30, 2019 . Principal Amounts Interest Rate Maturity Dates (Dollars in thousands) 10,000 2.64 % July 15, 2019 10,000 2.63 % September 4, 2019 10,000 2.52 % November 29, 2019 10,000 2.19 % December 26, 2019 |
Business Segment Information -
Business Segment Information - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Net Interest Income and Noninterest Income | The following table sets forth information regarding the net interest income and noninterest income for our commercial banking segment for the three and six months ended June 30, 2019 and 2018 . (Dollars in thousands) Commercial Other (1) Total Net interest income for the three months ended June 30, 2019 $ 12,449 $ (230 ) $ 12,219 2018 $ 11,849 $ 598 $ 12,447 Noninterest income for the three months ended June 30, 2019 $ 1,379 $ 7 $ 1,386 2018 $ 1,130 $ 6 $ 1,136 Net interest income for the six months ended June 30, 2019 $ 24,733 $ (463 ) $ 24,270 2018 $ 23,449 $ 1,183 $ 24,632 Noninterest income for the six months ended June 30, 2019 $ 2,862 $ 14 $ 2,876 2018 $ 2,179 $ 12 $ 2,191 Segment Assets at: June 30, 2019 $ 1,418,304 $ 813 $ 1,419,117 December 31, 2018 $ 1,349,097 $ 241 $ 1,349,338 (1) Represents net interest income and noninterest income for PMAR and PMBC. |
Regulatory Capital - (Tables)
Regulatory Capital - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Actual Amount and Capital Ratios of Company and Bank | The following table sets forth the capital and capital ratios of the Bank (on a stand-alone basis) at June 30, 2019 , as compared to the regulatory requirements applicable to it. Applicable Federal Regulatory Requirement For Capital Adequacy Purposes To be Categorized As Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) Total Capital to Risk Weighted Assets 166,176 13.5 % 121,467 At least 8.625 $ 123,269 At least 10.0 Common Equity Tier 1 Capital to Risk Weighted Assets 154,352 12.5 % 63,175 At least 5.125 $ 80,125 At least 6.5 Tier 1 Capital to Risk Weighted Assets 154,352 12.5 % 81,665 At least 6.625 $ 98,615 At least 8.0 Tier 1 Capital to Average Assets 154,352 11.0 % 56,332 At least 4.0 $ 70,416 At least 5.0 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease, liability | $ 10,020 | $ 11,100 | ||
Operating right-of-use assets | $ 9,499 | 11,100 | ||
Cumulative adjustment from adoption of new accounting pronouncements | $ (207) | $ (97) | ||
Retained earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative adjustment from adoption of new accounting pronouncements | $ 207 | $ (207) | $ (97) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||
Payments to acquire FHLB stock | $ 0 | $ 0 |
Number of FRBSF stock purchased (in shares) | 0 | 0 |
Number of FHLB stock sold (in shares) | 0 | |
Number of FRBSF stock sold (in shares) | 0 | 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | $ 28,393 | $ 31,231 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 28,393 | 31,231 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 28,393 | 31,231 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 1,996 | 2,980 |
U.S. Treasury securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 1,996 | 2,980 |
U.S. Treasury securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
U.S. Treasury securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 1,996 | 2,980 |
U.S. Treasury securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Commercial mortgage backed securities issued by U.S. Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 4,586 | 4,534 |
Commercial mortgage backed securities issued by U.S. Agencies | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 4,586 | 4,534 |
Commercial mortgage backed securities issued by U.S. Agencies | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Commercial mortgage backed securities issued by U.S. Agencies | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 4,586 | 4,534 |
Commercial mortgage backed securities issued by U.S. Agencies | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Residential mortgage backed securities issued by U.S. agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 21,811 | 23,717 |
Residential mortgage backed securities issued by U.S. agencies | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 21,811 | 23,717 |
Residential mortgage backed securities issued by U.S. agencies | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Residential mortgage backed securities issued by U.S. agencies | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 21,811 | 23,717 |
Residential mortgage backed securities issued by U.S. agencies | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Level 3 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | $ 1,344 | |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 1,426 | $ 5,490 |
Nonrecurring | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 1,344 | 4,226 |
Nonrecurring | Other foreclosed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 82 | 91 |
Nonrecurring | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 0 | 1,173 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 0 | 0 |
Nonrecurring | Level 1 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 0 | 0 |
Nonrecurring | Level 1 | Other foreclosed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 0 | 0 |
Nonrecurring | Level 1 | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 82 | 1,264 |
Nonrecurring | Level 2 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 0 | 0 |
Nonrecurring | Level 2 | Other foreclosed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 82 | 91 |
Nonrecurring | Level 2 | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 0 | 1,173 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 1,344 | 4,226 |
Nonrecurring | Level 3 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 1,344 | 4,226 |
Nonrecurring | Level 3 | Other foreclosed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 0 | 0 |
Nonrecurring | Level 3 | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | $ 0 | $ 0 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques for Level 3 Financial Instruments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Impaired loans | Level 3 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Assets, fair value disclosure | $ 1,344 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Related Carrying Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | $ 265,241 | $ 187,718 |
Interest-bearing deposits with financial institutions | 2,420 | 2,420 |
Federal Reserve Bank of San Francisco and Federal Home Loan Bank stock | 7,910 | 8,822 |
Loans, net | 1,077,595 | 1,083,240 |
Accrued interest receivable | 4,365 | 4,003 |
Financial liabilities: | ||
Noninterest bearing deposits | 378,063 | 340,406 |
Interest-bearing deposits | 821,567 | 795,596 |
Borrowings | 40,000 | 40,000 |
Junior subordinated debentures | 17,527 | 17,527 |
Accrued interest payable | 497 | 361 |
Total | ||
Financial assets: | ||
Cash and cash equivalents | 265,241 | 187,718 |
Interest-bearing deposits with financial institutions | 2,420 | 2,420 |
Federal Reserve Bank of San Francisco and Federal Home Loan Bank stock | 7,910 | 8,822 |
Loans, net | 1,070,951 | 1,066,147 |
Accrued interest receivable | 4,365 | 4,003 |
Financial liabilities: | ||
Noninterest bearing deposits | 378,063 | 340,406 |
Interest-bearing deposits | 822,553 | 794,321 |
Borrowings | 40,018 | 39,976 |
Junior subordinated debentures | 17,527 | 17,527 |
Accrued interest payable | 497 | 361 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 265,241 | 187,718 |
Interest-bearing deposits with financial institutions | 2,420 | 2,420 |
Federal Reserve Bank of San Francisco and Federal Home Loan Bank stock | 7,910 | 8,822 |
Loans, net | 0 | 0 |
Accrued interest receivable | 4,365 | 4,003 |
Financial liabilities: | ||
Noninterest bearing deposits | 378,063 | 340,406 |
Interest-bearing deposits | 0 | 0 |
Borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Accrued interest payable | 497 | 361 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits with financial institutions | 0 | 0 |
Federal Reserve Bank of San Francisco and Federal Home Loan Bank stock | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
Interest-bearing deposits | 822,553 | 794,321 |
Borrowings | 40,018 | 39,976 |
Junior subordinated debentures | 17,527 | 17,527 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits with financial institutions | 0 | 0 |
Federal Reserve Bank of San Francisco and Federal Home Loan Bank stock | 0 | 0 |
Loans, net | 1,070,951 | 1,066,147 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Investments - Major Components
Investments - Major Components of Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost | $ 28,487 | $ 32,233 |
Gross Unrealized Gain | 160 | 41 |
Gross Unrealized Loss | (254) | (1,043) |
Estimated Fair Value | 28,393 | 31,231 |
U.S. Treasury securities | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost | 1,999 | 2,999 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (3) | (19) |
Estimated Fair Value | 1,996 | 2,980 |
Commercial mortgage backed securities issued by U.S. Agencies | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost | 4,428 | 4,495 |
Gross Unrealized Gain | 158 | 40 |
Gross Unrealized Loss | 0 | (1) |
Estimated Fair Value | 4,586 | 4,534 |
Residential mortgage backed securities issued by U.S. agencies | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost | 22,060 | 24,739 |
Gross Unrealized Gain | 2 | 1 |
Gross Unrealized Loss | (251) | (1,023) |
Estimated Fair Value | $ 21,811 | $ 23,717 |
Investments - Narrative (Detail
Investments - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($)Investment | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)Investment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Investments [Abstract] | ||||||
Aggregate fair market value of securities pledged as collateral | $ 12,400,000 | $ 12,400,000 | $ 18,200,000 | |||
Payments acquire debt securities | 0 | $ 0 | 0 | $ 0 | ||
Proceeds from sale of debt securities available for sale | 0 | 0 | $ 2,100,000 | 0 | ||
Gain on sale of available for sales securities | 53,000 | |||||
Proceeds on the sale of equity security | 4,800,000 | |||||
Loss on sale of equity security | $ 5,000 | |||||
Other-than-temporary impairment loss, available for sale securities | $ 0 | 0 | $ 0 | 0 | ||
Number of investments in limited partnerships | Investment | 3 | 3 | ||||
Capital contributions, investments | $ 283,000 | $ 89,000 | $ 877,000 | $ 89,000 |
Investments - Amortized Cost an
Investments - Amortized Cost and Estimated Fair Value by Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available for sale, amortized cost | ||
One year or less | $ 7,055 | $ 7,874 |
Over one year through five years | 12,948 | 13,466 |
Over five years through ten years | 7,305 | 9,971 |
Over ten Years | 1,179 | 922 |
Amortized Cost | 28,487 | 32,233 |
Securities available for sale, estimated fair value | ||
One year or less | 7,018 | 7,663 |
Over one year through five years | 12,807 | 12,934 |
Over five years through ten years | 7,345 | 9,710 |
Over ten Years | 1,223 | 924 |
Total | $ 28,393 | $ 31,231 |
Weighted average yield | ||
One year or less | 1.47% | 1.46% |
Over one year through five years | 1.60% | 1.62% |
Over five years through ten years | 2.21% | 2.22% |
Over ten Years | 3.26% | 3.13% |
Total | 1.79% | 1.81% |
Investments - Securities in Con
Investments - Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 0 | $ 1,360 |
Less than 12 months, Unrealized Loss | 0 | (4) |
12 months or more, Fair Value | 21,483 | 26,279 |
12 months or more, Unrealized Loss | (254) | (1,039) |
Total, Fair Value | 21,483 | 27,639 |
Total, Unrealized Loss | (254) | (1,043) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Unrealized Loss | 0 | 0 |
12 months or more, Fair Value | 1,996 | 2,980 |
12 months or more, Unrealized Loss | (3) | (19) |
Total, Fair Value | 1,996 | 2,980 |
Total, Unrealized Loss | (3) | (19) |
Commercial mortgage backed securities issued by U.S. Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 0 | 999 |
Less than 12 months, Unrealized Loss | 0 | (1) |
12 months or more, Fair Value | 0 | 0 |
12 months or more, Unrealized Loss | 0 | 0 |
Total, Fair Value | 0 | 999 |
Total, Unrealized Loss | 0 | (1) |
Residential mortgage backed securities issued by U.S. Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 0 | 361 |
Less than 12 months, Unrealized Loss | 0 | (3) |
12 months or more, Fair Value | 19,487 | 23,299 |
12 months or more, Unrealized Loss | (251) | (1,020) |
Total, Fair Value | 19,487 | 23,660 |
Total, Unrealized Loss | $ (251) | $ (1,023) |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Equity investments without readily determinable fair value | $ 2,117 | $ 1,240 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan and Lease Losses - Components of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 1,086,452 | $ 1,093,886 | ||||
Deferred fee (income) costs, net | 2,617 | 2,860 | ||||
Allowance for loan and lease losses | (11,474) | $ (11,514) | (13,506) | $ (13,369) | $ (13,405) | $ (14,196) |
Loans, net | $ 1,077,595 | $ 1,083,240 | ||||
Percentage of loan portfolio | 100.00% | 100.00% | ||||
Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 441,850 | $ 444,441 | ||||
Allowance for loan and lease losses | $ (6,809) | (6,895) | $ (8,071) | (7,493) | (7,634) | (9,155) |
Percentage of loan portfolio | 40.70% | 40.70% | ||||
Commercial real estate loans – owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 214,233 | $ 211,645 | ||||
Percentage of loan portfolio | 19.70% | 19.30% | ||||
Commercial real estate loans – all other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 221,437 | $ 226,441 | ||||
Percentage of loan portfolio | 20.40% | 20.70% | ||||
Residential mortgage loans – multi-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 83,966 | $ 97,173 | ||||
Percentage of loan portfolio | 7.70% | 8.90% | ||||
Residential mortgage loans – single family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 21,294 | $ 21,176 | ||||
Percentage of loan portfolio | 2.00% | 1.90% | ||||
Construction and land development loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 12,230 | $ 38,496 | ||||
Allowance for loan and lease losses | $ (119) | $ (295) | $ (426) | $ (327) | $ (888) | $ (650) |
Percentage of loan portfolio | 1.10% | 3.50% | ||||
Consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 91,442 | $ 54,514 | ||||
Percentage of loan portfolio | 8.40% | 5.00% |
Loans and Allowance for Loan _4
Loans and Allowance for Loan and Lease Losses - Narrative (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($)Loan | Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($)Loan | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases receivable sold | $ 2,400,000 | $ 7,100,000 | ||||
Loans and leases receivable purchased | 46,400,000 | $ 0 | $ 0 | |||
Period of loan loss history and industry loss factors used to determine historical losses | 4 years | |||||
Loans greater than 90 Days and accruing | 0 | $ 0 | $ 1,300,000 | |||
Impaired loans with no specific reserves | 1,344,000 | 1,344,000 | 4,226,000 | |||
Impaired loans, impaired in prior year | 1,200,000 | 1,200,000 | ||||
Interest that would have been earned had impaired loans remained current in accordance with original terms | 26,000 | $ 101,000 | 45,000 | $ 206,000 | ||
Troubled debt restructurings, totals | $ 0 | $ 0 | 0 | |||
Number of loans restructured | Loan | 0 | 0 | 0 | 0 | ||
Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Impaired loans with no specific reserves | $ 467,000 | $ 467,000 | 3,352,000 | |||
Commercial real estate loans – all other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases receivable sold | $ 15,100,000 | $ 15,100,000 | ||||
Consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases receivable purchased | 39,900,000 | 39,900,000 | ||||
Impaired loans with no specific reserves | 95,000 | 95,000 | 43,000 | |||
Federal Reserve Bank Of San Francisco | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans pledged to secure borrowings obtained from the FHLB and FRB | 219,000,000 | |||||
Federal Reserve Bank Of San Francisco | Consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans pledged to secure borrowings obtained from the FHLB and FRB | 51,000,000 | |||||
Federal Home Loan Bank of San Francisco | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans pledged to secure borrowings obtained from the FHLB and FRB | $ 386,000,000 | $ 386,000,000 | $ 807,000,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan and Lease Losses - Summary of Activity in ALLL (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 11,514 | $ 13,405 | $ 13,506 | $ 14,196 |
Charge offs | (127) | (355) | (5,825) | (1,423) |
Recoveries | 87 | 319 | 493 | 596 |
Provision | 0 | 0 | 3,300 | 0 |
Balance at end of period | 11,474 | 13,369 | 11,474 | 13,369 |
Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 6,895 | 7,634 | 8,071 | 9,155 |
Charge offs | (103) | (355) | (5,772) | (1,423) |
Recoveries | 82 | 288 | 483 | 560 |
Provision | (65) | (74) | 4,027 | (799) |
Balance at end of period | 6,809 | 7,493 | 6,809 | 7,493 |
Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 2,709 | 3,255 | 3,643 | 2,906 |
Charge offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 81 | (302) | (853) | 47 |
Balance at end of period | 2,790 | 2,953 | 2,790 | 2,953 |
Construction and Land Development | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 295 | 888 | 426 | 650 |
Charge offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (176) | (561) | (307) | (323) |
Balance at end of period | 119 | 327 | 119 | 327 |
Consumer and Single Family Mortgages | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 1,486 | 1,112 | 1,290 | 1,043 |
Charge offs | (24) | 0 | (53) | 0 |
Recoveries | 5 | 31 | 10 | 36 |
Provision | 289 | 435 | 509 | 499 |
Balance at end of period | 1,756 | 1,578 | 1,756 | 1,578 |
Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 129 | 516 | 76 | 442 |
Charge offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (129) | 502 | (76) | 576 |
Balance at end of period | $ 0 | $ 1,018 | $ 0 | $ 1,018 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan and Lease Losses - Loan Balances and Related ALLL (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loans individually evaluated for impairment | $ 0 | $ 0 | ||||
Allowance for loans collectively evaluated for impairment | 11,474 | 13,506 | ||||
Total allowance | 11,474 | $ 11,514 | 13,506 | $ 13,369 | $ 13,405 | $ 14,196 |
Loans individually evaluated for impairment | 1,127 | 4,226 | ||||
Loans collectively evaluated for impairment | 1,085,325 | 1,089,660 | ||||
Total loans | 1,086,452 | 1,093,886 | ||||
Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loans individually evaluated for impairment | 0 | 0 | ||||
Allowance for loans collectively evaluated for impairment | 6,809 | 8,071 | ||||
Total allowance | 6,809 | 6,895 | 8,071 | 7,493 | 7,634 | 9,155 |
Loans individually evaluated for impairment | 345 | 3,352 | ||||
Loans collectively evaluated for impairment | 441,505 | 441,089 | ||||
Total loans | 441,850 | 444,441 | ||||
Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loans individually evaluated for impairment | 0 | 0 | ||||
Allowance for loans collectively evaluated for impairment | 2,790 | 3,643 | ||||
Total allowance | 2,790 | 2,709 | 3,643 | 2,953 | 3,255 | 2,906 |
Loans individually evaluated for impairment | 782 | 831 | ||||
Loans collectively evaluated for impairment | 518,854 | 534,428 | ||||
Total loans | 519,636 | 535,259 | ||||
Construction and Land Development | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loans individually evaluated for impairment | 0 | 0 | ||||
Allowance for loans collectively evaluated for impairment | 119 | 426 | ||||
Total allowance | 119 | 295 | 426 | 327 | 888 | 650 |
Loans individually evaluated for impairment | 0 | 0 | ||||
Loans collectively evaluated for impairment | 12,230 | 38,496 | ||||
Total loans | 12,230 | 38,496 | ||||
Consumer and Single Family Mortgages | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loans individually evaluated for impairment | 0 | 0 | ||||
Allowance for loans collectively evaluated for impairment | 1,756 | 1,290 | ||||
Total allowance | 1,756 | 1,486 | 1,290 | 1,578 | 1,112 | 1,043 |
Loans individually evaluated for impairment | 0 | 43 | ||||
Loans collectively evaluated for impairment | 112,736 | 75,647 | ||||
Total loans | 112,736 | 75,690 | ||||
Unallocated | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loans individually evaluated for impairment | 0 | 0 | ||||
Allowance for loans collectively evaluated for impairment | 0 | 76 | ||||
Total allowance | 0 | $ 129 | 76 | $ 1,018 | $ 516 | $ 442 |
Loans individually evaluated for impairment | 0 | 0 | ||||
Loans collectively evaluated for impairment | 0 | 0 | ||||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan and Lease Losses - Summary of Delinquency Status of Loans by Portfolio Type (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 1,086,452,000 | $ 1,093,886,000 |
Loans greater than 90 Days and Accruing | 0 | 1,300,000 |
Commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 441,850,000 | 444,441,000 |
Commercial real estate loans – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 214,233,000 | 211,645,000 |
Commercial real estate loans – all other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 221,437,000 | 226,441,000 |
Residential mortgage loans – multi-family | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 83,966,000 | 97,173,000 |
Residential mortgage loans – single family | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 21,294,000 | 21,176,000 |
Construction and Land Development | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12,230,000 | 38,496,000 |
Consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 91,442,000 | 54,514,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 5,334,000 | 8,822,000 |
Current | 1,081,118,000 | 1,085,064,000 |
Total loans | 1,086,452,000 | 1,093,886,000 |
Loans greater than 90 Days and Accruing | 0 | 1,278,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2,097,000 | 13,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3,237,000 | 4,536,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 4,273,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 5,334,000 | 7,978,000 |
Current | 436,516,000 | 436,463,000 |
Total loans | 441,850,000 | 444,441,000 |
Loans greater than 90 Days and Accruing | 0 | 1,278,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2,097,000 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3,237,000 | 3,705,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial loans | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 4,273,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 831,000 |
Current | 214,233,000 | 210,814,000 |
Total loans | 214,233,000 | 211,645,000 |
Loans greater than 90 Days and Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans – owner occupied | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans – owner occupied | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 831,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans – owner occupied | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans – all other | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 221,437,000 | 226,441,000 |
Total loans | 221,437,000 | 226,441,000 |
Loans greater than 90 Days and Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans – all other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans – all other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans – all other | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage loans – multi-family | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 83,966,000 | 97,173,000 |
Total loans | 83,966,000 | 97,173,000 |
Loans greater than 90 Days and Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage loans – multi-family | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage loans – multi-family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage loans – multi-family | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage loans – single family | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 21,294,000 | 21,176,000 |
Total loans | 21,294,000 | 21,176,000 |
Loans greater than 90 Days and Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage loans – single family | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage loans – single family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage loans – single family | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Construction and Land Development | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 12,230,000 | 38,496,000 |
Total loans | 12,230,000 | 38,496,000 |
Loans greater than 90 Days and Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Construction and Land Development | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Construction and Land Development | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Construction and Land Development | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 13,000 |
Current | 91,442,000 | 54,501,000 |
Total loans | 91,442,000 | 54,514,000 |
Loans greater than 90 Days and Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 13,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan and Lease Losses - Loans on Nonaccrual Status by Portfolio Type (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | $ 1,344 | $ 4,226 |
Commercial loans | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 467 | 3,352 |
Commercial real estate loans – owner occupied | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 782 | 831 |
Consumer | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | $ 95 | $ 43 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan and Lease Losses - Summary of Loans by Portfolio Type and Internal Credit Quality Ratings (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 1,086,452 | $ 1,093,886 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,038,284 | 1,071,902 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 43,076 | 15,311 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 5,092 | 6,673 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 441,850 | 444,441 |
Commercial loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 400,270 | 428,287 |
Commercial loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 37,364 | 10,411 |
Commercial loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 4,216 | 5,743 |
Commercial real estate loans – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 214,233 | 211,645 |
Commercial real estate loans – owner occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 207,740 | 205,914 |
Commercial real estate loans – owner occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 5,712 | 4,900 |
Commercial real estate loans – owner occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 782 | 831 |
Commercial real estate loans – all other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 221,437 | 226,441 |
Commercial real estate loans – all other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 221,437 | 226,441 |
Residential mortgage loans – multi-family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 83,966 | 97,173 |
Residential mortgage loans – multi-family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 83,966 | 97,173 |
Residential mortgage loans – single family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 21,294 | 21,176 |
Residential mortgage loans – single family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 21,294 | 21,176 |
Construction and Land Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 12,230 | 38,496 |
Construction and Land Development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 12,230 | 38,496 |
Consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 91,442 | 54,514 |
Consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 91,347 | 54,415 |
Consumer loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 94 | $ 99 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan and Lease Losses - Nonaccrual Loans and Restructured Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired loans: | ||
Nonaccruing loans | $ 1,344 | $ 4,226 |
Nonaccruing restructured loans | 0 | 0 |
Accruing restructured loans | 0 | 0 |
Total impaired loans | 1,344 | 4,226 |
Impaired loans less than 90 days delinquent and included in total impaired loans | ||
Impaired loans: | ||
Total impaired loans | $ 1,344 | $ 1,232 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan and Lease Losses - Additional Information with Respect to Impaired Loans, by Portfolio Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, no allowance recorded | $ 1,344 | $ 1,344 | $ 4,226 | ||
Recorded investment, with allowance recorded | 0 | 0 | 0 | ||
Total impaired loans | 1,344 | 1,344 | 4,226 | ||
Unpaid principal balance, no allowance recorded | 1,761 | 1,761 | 5,506 | ||
Unpaid principal balance, with allowance recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance | 1,761 | 1,761 | 5,506 | ||
Related allowance | 0 | 0 | 0 | ||
Average balance, no allowance recorded | 1,332 | $ 6,070 | 2,297 | $ 6,018 | |
Average balance, with allowance recorded | 0 | 193 | 0 | 279 | |
Average Balance | 1,332 | 6,263 | 2,297 | 6,297 | |
Interest income recognized, no allowance recorded | 0 | 0 | 0 | 62 | |
Interest income recognized, with allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 62 | |
Commercial loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, no allowance recorded | 467 | 467 | 3,352 | ||
Total impaired loans | 467 | 467 | 3,352 | ||
Unpaid principal balance, no allowance recorded | 732 | 732 | 4,516 | ||
Unpaid Principal Balance | 732 | 732 | 4,516 | ||
Related allowance | 0 | 0 | 0 | ||
Average balance, no allowance recorded | 471 | 4,408 | 1,432 | 4,013 | |
Average balance, with allowance recorded | 0 | 193 | 0 | 279 | |
Average Balance | 471 | 4,601 | 1,432 | 4,292 | |
Interest income recognized, no allowance recorded | 0 | 0 | 0 | 62 | |
Interest income recognized, with allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 62 | |
Commercial real estate loans – owner occupied | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, no allowance recorded | 782 | 782 | 831 | ||
Total impaired loans | 782 | 782 | 831 | ||
Unpaid principal balance, no allowance recorded | 903 | 903 | 925 | ||
Unpaid Principal Balance | 903 | 903 | 925 | ||
Related allowance | 0 | 0 | 0 | ||
Average balance, no allowance recorded | 794 | 871 | 806 | 879 | |
Average Balance | 794 | 871 | 806 | 879 | |
Interest income recognized, no allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial real estate loans – all other | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average balance, no allowance recorded | 0 | 739 | 0 | 1,016 | |
Average Balance | 0 | 739 | 0 | 1,016 | |
Interest income recognized, no allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Residential mortgage loans – single family | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average balance, no allowance recorded | 0 | 0 | 0 | 57 | |
Average Balance | 0 | 0 | 0 | 57 | |
Interest income recognized, no allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Consumer loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, no allowance recorded | 95 | 95 | 43 | ||
Total impaired loans | 95 | 95 | 43 | ||
Unpaid principal balance, no allowance recorded | 126 | 126 | 65 | ||
Unpaid Principal Balance | 126 | 126 | 65 | ||
Related allowance | 0 | 0 | $ 0 | ||
Average balance, no allowance recorded | 67 | 52 | 59 | 53 | |
Average Balance | 67 | 52 | 59 | 53 | |
Interest income recognized, no allowance recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)lease | |
Leases [Abstract] | ||
Number of operating leases with multiple optional renewal periods | lease | 2 | |
Operating lease cost | $ 568 | $ 1,113 |
Short-term lease cost | 29 | 81 |
Total lease cost | $ 597 | $ 1,194 |
Weighted-average remaining lease term—operating leases (in years) | 5 years 6 months 25 days | 5 years 6 months 25 days |
Operating lease, weighted average discount rate, percent | 1.69% | 1.69% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating right-of-use assets | $ 9,499 | $ 11,100 |
Operating lease liabilities | $ 10,020 | $ 11,100 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases (fixed payments) | $ 1,113 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 10,600 | $ 9,919 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Remainder of 2019 | $ 956 | |
2020 | 1,921 | |
2021 | 1,712 | |
2022 | 1,768 | |
2023 | 1,823 | |
2024 and beyond | 2,530 | |
Total | 10,710 | |
Less: Imputed interest | 690 | |
Operating lease liabilities | $ 10,020 | $ 11,100 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision (benefit) | $ 1,170,000 | $ (11,085,000) | $ 1,545,000 | $ (11,085,000) | |
Valuation allowance | $ 11,100,000 | ||||
Unrecognized tax benefits | 0 | 0 | |||
Accrued interest or penalties associated with unrecognized tax benefits | 0 | 0 | 0 | 0 | |
Interest expense recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-Based Employee Compensa_3
Stock-Based Employee Compensation Plans - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
May 31, 2013 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding (in shares) | 842,446 | 864,330 | 842,446 | 864,330 | 864,330 | 792,577 | ||
Options exercised (in shares) | 15,000 | 37,108 | 15,000 | 75,108 | ||||
Aggregate intrinsic value of options exercised | $ 39 | $ 311 | $ 39 | $ 356 | ||||
Fair value of options vested | 74 | 75 | 412 | 349 | ||||
Aggregate intrinsic values of options outstanding and exercisable | 1,131 | $ 1,131 | $ 388 | |||||
Nonvested awards, expected weighted average recognition period | 2 years 1 month 6 days | |||||||
Aggregate amounts of stock based compensation expense, net of taxes | $ 154 | $ 170 | $ 295 | $ 298 | ||||
Restricted stock | Directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, restricted shares and SARs, vesting period | 1 year | |||||||
Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Purchase price per share of common stock as percentage of fair market value of shares on respective grant dates of stock options | 100.00% | |||||||
Minimum | Restricted stock | Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, restricted shares and SARs, vesting period | 3 years | |||||||
Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, restricted shares and SARs, vesting period | 5 years | |||||||
Options and SARs, terms after date of grant | 10 years | |||||||
Maximum | Restricted stock | Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, restricted shares and SARs, vesting period | 5 years | |||||||
Previously Approved Equity Incentive Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding (in shares) | 6,003 | 6,003 | ||||||
Equity Incentive Plan 2010 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 2,000,000 | |||||||
Additional shares authorized (in shares) | 0 | |||||||
Common stock | Equity Incentive Plan 2010 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding (in shares) | 836,443 | 836,443 | ||||||
Restricted stock | Equity Incentive Plan 2010 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding (in shares) | 170,214 | 170,214 |
Stock-Based Employee Compensa_4
Stock-Based Employee Compensation Plans - Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value of options granted during period (in dollars per share) | $ 0 | $ 2.81 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 0.00% | 0.00% | 0.00% | 30.00% |
Risk-free interest rate | 0.00% | 0.00% | 0.00% | 2.69% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term (years) | 0 years | 0 years | 0 years | 5 years 9 months 3 days |
Weighted average fair value of options granted during period (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 2.81 |
Stock-Based Employee Compensa_5
Stock-Based Employee Compensation Plans - Stock Option Activity under Plans (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Shares | ||||
Outstanding, beginning of period (in shares) | 864,330 | 792,577 | ||
Granted (in shares) | 0 | 154,011 | ||
Exercised (in shares) | (15,000) | (37,108) | (15,000) | (75,108) |
Forfeited/Canceled (in shares) | (6,884) | (7,150) | ||
Outstanding, end of period (in shares) | 842,446 | 864,330 | 842,446 | 864,330 |
Option Exercisable, end of period (in shares) | 721,420 | 585,482 | 721,420 | 585,482 |
Options Vested, end of period (in shares) | 721,420 | 585,482 | 721,420 | 585,482 |
Weighted- Average Exercise Price Per Share | ||||
Weighted Average Exercise Price, beginning of period (in dollars per share) | $ 6.86 | $ 6.41 | ||
Granted (in dollars per share) | 0 | 8.20 | ||
Exercised (in dollars per share) | 5.30 | 4.95 | ||
Forfeited/Canceled (in dollars per share) | 8.13 | 6.47 | ||
Weighted Average Exercise Price, end of period (in dollars per share) | $ 6.88 | $ 6.86 | 6.88 | 6.86 |
Options Exercisable, end of period (in dollars per share) | 6.68 | 6.49 | 6.68 | 6.49 |
Options Vested, end of period (in dollars per share) | $ 6.68 | $ 6.49 | $ 6.68 | $ 6.49 |
Stock-Based Employee Compensa_6
Stock-Based Employee Compensation Plans - Vested and Unvested Options Outstanding (Details) - $ / shares | 6 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, vested (in shares) | 721,420 | 585,482 | ||
Options outstanding, unvested (in shares) | 121,026 | 275,457 | 278,848 | 255,348 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 6.88 | $ 6.86 | $ 6.86 | $ 6.41 |
Options outstanding, weighted average remaining contractual life (years) | 5 years 9 months 7 days | |||
Options exercisable (in shares) | 721,420 | 585,482 | ||
Options exercisable, weighted average exercise price (in dollars per share) | $ 6.68 | $ 6.49 | ||
Options exercisable, weighted average remaining contractual life | 5 years 4 months 2 days | |||
$2.97 – $3.99 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option outstanding, exercise price, lower limit (in dollars per share) | $ 2.97 | |||
Option outstanding, exercise price, upper limit (in dollars per share) | $ 3.99 | |||
Options outstanding, vested (in shares) | 18,003 | |||
Options outstanding, unvested (in shares) | 0 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 3.48 | |||
Options outstanding, weighted average remaining contractual life (years) | 1 year 11 months 12 days | |||
Options exercisable (in shares) | 18,003 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.48 | |||
$4.00 – $5.99 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option outstanding, exercise price, lower limit (in dollars per share) | 4 | |||
Option outstanding, exercise price, upper limit (in dollars per share) | $ 5.99 | |||
Options outstanding, vested (in shares) | 16,000 | |||
Options outstanding, unvested (in shares) | 0 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 4.34 | |||
Options outstanding, weighted average remaining contractual life (years) | 1 year 9 months 18 days | |||
Options exercisable (in shares) | 16,000 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.34 | |||
$6.00– $6.99 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option outstanding, exercise price, lower limit (in dollars per share) | 6 | |||
Option outstanding, exercise price, upper limit (in dollars per share) | $ 6.99 | |||
Options outstanding, vested (in shares) | 478,435 | |||
Options outstanding, unvested (in shares) | 16,552 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 6.61 | |||
Options outstanding, weighted average remaining contractual life (years) | 5 years | |||
Options exercisable (in shares) | 478,435 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 6.60 | |||
$7.00– $7.99 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option outstanding, exercise price, lower limit (in dollars per share) | 7 | |||
Option outstanding, exercise price, upper limit (in dollars per share) | $ 7.99 | |||
Options outstanding, vested (in shares) | 161,129 | |||
Options outstanding, unvested (in shares) | 0 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 7.08 | |||
Options outstanding, weighted average remaining contractual life (years) | 6 years 3 months 7 days | |||
Options exercisable (in shares) | 161,129 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 7.08 | |||
$8.00-$8.40 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option outstanding, exercise price, lower limit (in dollars per share) | 8 | |||
Option outstanding, exercise price, upper limit (in dollars per share) | $ 8.4 | |||
Options outstanding, vested (in shares) | 47,853 | |||
Options outstanding, unvested (in shares) | 104,474 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 8.19 | |||
Options outstanding, weighted average remaining contractual life (years) | 8 years 7 months 17 days | |||
Options exercisable (in shares) | 47,853 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 8.18 |
Stock-Based Employee Compensa_7
Stock-Based Employee Compensation Plans - Summary of Status of Unvested Options Outstanding and Changes in Number of Shares Subject to and in Weighted Average Grant Date Fair Values (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Shares Subject to Options | ||
Unvested, beginning of period (in shares) | 275,457 | 255,348 |
Granted (in shares) | 0 | 154,011 |
Vested (in shares) | (147,687) | (123,361) |
Forfeited/canceled (in shares) | (6,744) | (7,150) |
Unvested, end of period (in shares) | 121,026 | 278,848 |
Weighted Average Grant Date Fair Value Per Share | ||
Unvested, beginning of period (in dollars per share) | $ 2.79 | $ 2.80 |
Granted (in dollars per share) | 0 | 2.81 |
Vested (in dollars per share) | 2.79 | 2.83 |
Forfeited/canceled (in dollars per share) | 2.83 | 2.66 |
Unvested, end of period (in dollars per share) | $ 2.79 | $ 2.79 |
Stock-Based Employee Compensa_8
Stock-Based Employee Compensation Plans - Restricted Stock Activity (Details) - Restricted stock - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Shares | ||
Outstanding, at beginning of period (in shares) | 115,031 | 103,508 |
Granted (in shares) | 123,896 | 75,417 |
Vested (in shares) | (61,337) | (62,564) |
Forfeited (in shares) | (7,376) | (4,690) |
Outstanding, at end of period (in shares) | 170,214 | 111,671 |
Average Grant Date Fair Value Per Share | ||
Outstanding, at beginning of period (in dollars per share) | $ 8.04 | $ 7.33 |
Granted (in dollars per share) | 8.59 | 8.19 |
Vested (in dollars per share) | 7.78 | 7.26 |
Forfeited (in dollars per share) | 8.77 | 7.55 |
Outstanding, at end of period (in dollars per share) | $ 8.50 | $ 7.94 |
Stock-Based Employee Compensa_9
Stock-Based Employee Compensation Plans - Compensation Expense Expected to be Recognized (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated Stock Based Compensation Expense for remainder of year 2019 | $ 358 |
Estimated Stock Based Compensation Expense for year 2020 | 626 |
Estimated Stock Based Compensation Expense for year 2021 | 396 |
Estimated Stock Based Compensation Expense for year 2022 | 118 |
Estimated Stock Based Compensation Expense for year 2023 and Beyond | 50 |
Estimated Stock Based Compensation Expense | 1,548 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated Stock Based Compensation Expense for remainder of year 2019 | 74 |
Estimated Stock Based Compensation Expense for year 2020 | 151 |
Estimated Stock Based Compensation Expense for year 2021 | 44 |
Estimated Stock Based Compensation Expense for year 2022 | 17 |
Estimated Stock Based Compensation Expense for year 2023 and Beyond | 2 |
Estimated Stock Based Compensation Expense | 288 |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated Stock Based Compensation Expense for remainder of year 2019 | 284 |
Estimated Stock Based Compensation Expense for year 2020 | 475 |
Estimated Stock Based Compensation Expense for year 2021 | 352 |
Estimated Stock Based Compensation Expense for year 2022 | 101 |
Estimated Stock Based Compensation Expense for year 2023 and Beyond | 48 |
Estimated Stock Based Compensation Expense | $ 1,260 |
Earnings Per Share ("EPS") - Co
Earnings Per Share ("EPS") - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic EPS: | ||||||
Net income | $ 2,728 | $ 882 | $ 15,369 | $ 3,707 | $ 3,610 | $ 19,076 |
Less dividends on preferred stock | 0 | 0 | 0 | 0 | ||
Less dividends on common stock | 0 | 0 | 0 | 0 | ||
Less dividends on unvested shares | 0 | 0 | 0 | 0 | ||
Net income allocable to common shareholders | 2,728 | 15,369 | 3,610 | 19,076 | ||
Less earnings allocated to participating securities | 102 | 78 | 191 | 94 | ||
Earnings allocated to common shareholders | $ 2,626 | $ 15,291 | $ 3,419 | $ 18,982 | ||
Weighted average common shares outstanding (in shares) | 22,619,993 | 23,213,382 | 22,224,376 | 23,184,877 | ||
Basic earnings per common share (in dollars per share) | $ 0.12 | $ 0.66 | $ 0.15 | $ 0.82 | ||
Diluted EPS: | ||||||
Earnings allocated to common shareholders | $ 2,728 | $ 15,369 | $ 3,610 | $ 19,076 | ||
Add dilutive effects for assumed conversion of Series A preferred stock (in shares) | 710,000 | 0 | 1,086,000 | 0 | ||
Weighted average diluted common shares outstanding (in shares) | 23,615,958 | 23,557,516 | 23,581,106 | 23,502,403 | ||
Diluted earnings per common share (in dollars per share) | $ 0.12 | $ 0.65 | $ 0.15 | $ 0.81 | ||
Restricted stock | ||||||
Diluted EPS: | ||||||
Add dilutive effects of restricted stock grants and stock options (in shares) | 170,000 | 119,000 | 154,000 | 114,000 | ||
Stock options | ||||||
Diluted EPS: | ||||||
Add dilutive effects of restricted stock grants and stock options (in shares) | 116,000 | 226,000 | 117,000 | 203,000 |
Earnings Per Share ("EPS") - An
Earnings Per Share ("EPS") - Anti-dilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from computation of earnings per share (in shares) | 183,724 | 157,711 | 184,275 | 113,971 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||
Beginning balance | $ 142,616 | $ 141,374 | $ 116,395 | $ 112,876 | $ 141,374 | $ 112,876 | $ 112,876 | ||
Other comprehensive income, net of tax | 273 | 367 | (41) | (298) | |||||
Ending balance | 145,916 | 142,616 | 132,305 | 116,395 | 145,916 | 132,305 | 141,374 | ||
Net gain on sale of securities available for sale | 0 | 0 | 0 | 48 | |||||
Cumulative adjustment from adoption of new accounting pronouncements | (207) | $ (97) | |||||||
Unrealized Gain (Loss) on Securities Available-for-Sale, net of tax | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||
Beginning balance | (1,144) | (1,143) | (1,144) | (1,143) | (1,143) | ||||
Other comprehensive income before reclassifications, net of tax | 640 | (50) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 49 | |||||||
Other comprehensive income, net of tax | 640 | (1) | |||||||
Ending balance | (504) | (504) | (1,144) | ||||||
Other comprehensive income before reclassifications, tax provision | 268 | 142 | |||||||
Other comprehensive loss, tax | 268 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||
Beginning balance | (777) | (1,144) | (1,441) | (1,143) | (1,144) | (1,143) | (1,143) | ||
Other comprehensive income before reclassifications, net of tax | 640 | (50) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 49 | |||||||
Other comprehensive income, net of tax | 273 | 367 | (41) | (298) | 640 | (1) | |||
Ending balance | (504) | (777) | (1,482) | (1,441) | (504) | (1,482) | (1,144) | ||
Other comprehensive income before reclassifications, tax provision | 268 | 142 | |||||||
Other comprehensive loss, tax | 268 | ||||||||
Net gain on sale of securities available for sale | 48 | ||||||||
Retained earnings | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||
Beginning balance | (8,753) | (9,428) | (33,060) | (36,670) | (9,428) | (36,670) | (36,670) | ||
Ending balance | $ (6,025) | $ (8,753) | $ (17,691) | $ (33,060) | $ (6,025) | $ (17,691) | (9,428) | ||
Cumulative adjustment from adoption of new accounting pronouncements | (207) | $ 207 | $ (97) | ||||||
Retained earnings | ASU 2016-01 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||
Cumulative adjustment from adoption of new accounting pronouncements | $ (97) |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Commitment And Contingencies [Line Items] | ||
Loss reserve for unfunded loan commitments | $ 350,000 | $ 350,000 |
Unused borrowing capacity | 365,000,000 | |
Maximum borrowings outstanding at any month-end | 40,900,000 | |
Short-term FHLB advances outstanding | 40,000,000 | |
FHLB advances—long-term | 0 | 0 |
Letter of credit | ||
Commitment And Contingencies [Line Items] | ||
Commitment to fund certain loans including letter of credit | $ 317,000,000 | 302,000,000 |
Unfavorable Regulatory Action | ||
Commitment And Contingencies [Line Items] | ||
Loss contingency during period | $ 1,000,000 | |
FHLB Advances | ||
Commitment And Contingencies [Line Items] | ||
Weighted-average annualized interest rate | 2.50% | 2.54% |
Federal Home Loan Bank of San Francisco | ||
Commitment And Contingencies [Line Items] | ||
Loans pledged as collateral to support FHLB and FRB borrowings | $ 386,000,000 | |
Unused borrowing capacity | 229,000,000 | |
Maximum borrowings outstanding at any month-end | 40,000,000 | |
Federal Reserve Bank Of San Francisco | ||
Commitment And Contingencies [Line Items] | ||
Unused borrowing capacity | 159,000,000 | $ 159,000,000 |
Commercial loans | Federal Reserve Bank Of San Francisco | ||
Commitment And Contingencies [Line Items] | ||
Loans pledged as collateral to support FHLB and FRB borrowings | 219,000,000 | 219,000,000 |
Consumer loans | Federal Reserve Bank Of San Francisco | ||
Commitment And Contingencies [Line Items] | ||
Loans pledged as collateral to support FHLB and FRB borrowings | $ 51,000,000 | $ 51,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Borrowings and Contractual Obligations (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
FHLB advances—short-term | $ 40,000,000 | $ 40,000,000 |
FHLB advances—long-term | 0 | 0 |
Total | $ 40,000,000 | $ 40,000,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of FHLB Borrowings (Details) - FHLB Advances | Jun. 30, 2019USD ($) |
2.64% due July 2019 | |
Debt Instrument [Line Items] | |
Principal Amounts | $ 10,000,000 |
Interest Rate | 2.64% |
2.63% due September 2019 | |
Debt Instrument [Line Items] | |
Principal Amounts | $ 10,000,000 |
Interest Rate | 2.63% |
2.52% due November 2019 | |
Debt Instrument [Line Items] | |
Principal Amounts | $ 10,000,000 |
Interest Rate | 2.52% |
2.19% due December 2019 | |
Debt Instrument [Line Items] | |
Principal Amounts | $ 10,000,000 |
Interest Rate | 2.19% |
Business Segment Information _2
Business Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Reportable business segment | 1 |
Business Segment Information _3
Business Segment Information - Net Interest Income and Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 12,219 | $ 12,447 | $ 24,270 | $ 24,632 | |
Noninterest Income | 1,386 | 1,136 | 2,876 | 2,191 | |
Assets | 1,419,117 | 1,419,117 | $ 1,349,338 | ||
Operating segment | Commercial | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 12,449 | 11,849 | 24,733 | 23,449 | |
Noninterest Income | 1,379 | 1,130 | 2,862 | 2,179 | |
Assets | 1,418,304 | 1,418,304 | 1,349,097 | ||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | (230) | 598 | (463) | 1,183 | |
Noninterest Income | 7 | $ 6 | 14 | $ 12 | |
Assets | $ 813 | $ 813 | $ 241 |
Regulatory Capital - Actual Amo
Regulatory Capital - Actual Amount and Capital Ratios of Company and Bank (Details) - Bank $ in Thousands | Jun. 30, 2019USD ($) |
Total Capital to Risk Weighted Assets | |
Total Capital to Risk Weighted Assets, Actual Capital Amount | $ 166,176 |
Total Capital to Risk Weighted Assets, Actual Capital Ratio | 13.50% |
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes, Amount | $ 121,467 |
Total Capital to Risk Weighted Assets To be Categorized as Well-capitalized, Amount | 123,269 |
Tier 1 Capital to Risk Weighted Assets | |
Tier 1 Capital to Risk Weighted Assets, Actual Capital Amount | $ 154,352 |
Tier 1 Capital to Risk Weighted Asset, Actual Capital Ratio | 12.50% |
Tier 1 Capital to Risk Weighted Assets, For Capital Adequacy Purposes, Amount | $ 81,665 |
Tier 1 Capital to Risk Weighted Assets, To be Categorized As Well Capitalized, Amount | 98,615 |
Tier 1 Capital to Average Assets | |
Tier 1 Capital to Average Assets, Actual Capital Amount | $ 154,352 |
Tier 1 Capital to Average Asset, Actual Capital Ratio | 11.00% |
Tier 1 Capital to Average Assets, For Capital Adequacy Purposes, Amount | $ 56,332 |
Tier 1 Capital to Risk Weighted Assets, To be Categorized As Well Capitalized, Amount | $ 70,416 |
Minimum | |
Total Capital to Risk Weighted Assets | |
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes, Ratio | 8.625% |
Total Capital to Risk Weighted Assets To be Categorized as Well-capitalized, Ratio | 10.00% |
Tier 1 Capital to Risk Weighted Assets | |
Tier 1 Capital to Risk Weighted Assets, For Capital Adequacy Purposes, Ratio | 6.625% |
Tier 1 Capital to Risk Weighted Assets, To be Categorized As Well Capitalized, Ratio | 8.00% |
Tier 1 Capital to Average Assets | |
Tier 1 Capital to Average Assets, For Capital Adequacy Purposes, Ratio | 4.00% |
Tier 1 Capital to Average Assets, To be Categorized As Well Capitalized, Ratio | 5.00% |
Common stock | |
Tier 1 Capital to Risk Weighted Assets | |
Tier 1 Capital to Risk Weighted Assets, Actual Capital Amount | $ 154,352 |
Tier 1 Capital to Risk Weighted Asset, Actual Capital Ratio | 12.50% |
Tier 1 Capital to Risk Weighted Assets, For Capital Adequacy Purposes, Amount | $ 63,175 |
Tier 1 Capital to Risk Weighted Assets, To be Categorized As Well Capitalized, Amount | $ 80,125 |
Common stock | Minimum | |
Tier 1 Capital to Risk Weighted Assets | |
Tier 1 Capital to Risk Weighted Assets, For Capital Adequacy Purposes, Ratio | 5.125% |
Tier 1 Capital to Risk Weighted Assets, To be Categorized As Well Capitalized, Ratio | 6.50% |