Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-33572 | |
Entity Registrant Name | Bank of Marin Bancorp | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 20-8859754 | |
Entity Address, Address Line One | 504 Redwood Blvd. | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Novato | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94947 | |
City Area Code | 415 | |
Local Phone Number | 763-4520 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | BMRC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Smaller Reporting Company | true | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 13,643,265 | |
Entity Central Index Key | 0001403475 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash, cash equivalents and restricted cash | $ 58,757 | $ 34,221 |
Investment securities | ||
Held-to-maturity, at amortized cost | 148,879 | 157,206 |
Available-for-sale, at fair value | 378,131 | 462,464 |
Total investment securities | 527,010 | 619,670 |
Loans, net of allowance for loan losses of $15,835 and $15,821 at June 30, 2019 and December 31, 2018, respectively | 1,749,044 | 1,748,043 |
Bank premises and equipment, net | 6,872 | 7,376 |
Goodwill | 30,140 | 30,140 |
Core deposit intangible | 5,128 | 5,571 |
Operating lease right-of-use assets | 12,515 | |
Interest receivable and other assets | 74,521 | 75,871 |
Total assets | 2,463,987 | 2,520,892 |
Deposits | ||
Non-interest bearing | 1,056,655 | 1,066,051 |
Interest bearing | ||
Transaction accounts | 121,232 | 133,403 |
Savings accounts | 172,255 | 178,429 |
Money market accounts | 647,592 | 679,775 |
Time accounts | 104,306 | 117,182 |
Total deposits | 2,102,040 | 2,174,840 |
Borrowings and other obligations | 297 | |
Borrowings and other obligations | 7,000 | |
Subordinated debentures | 2,674 | 2,640 |
Operating lease liabilities | 14,332 | |
Interest payable and other liabilities | 16,977 | 20,005 |
Total liabilities | 2,136,320 | 2,204,485 |
Stockholders' Equity | ||
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued | 0 | 0 |
Common stock, no par value, Authorized - 30,000,000 shares; Issued and outstanding - 13,659,143 and 13,844,353 at June 30, 2019 and December 31, 2018, respectively | 132,151 | 140,565 |
Retained earnings | 190,416 | 179,944 |
Accumulated other comprehensive income (loss), net of taxes | 5,100 | (4,102) |
Total stockholders' equity | 327,667 | 316,407 |
Total liabilities and stockholders' equity | $ 2,463,987 | $ 2,520,892 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable, Net Amount | ||
Loans, allowance for loan losses | $ 15,835 | $ 15,821 |
Stockholders' Equity | ||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, issued (in shares) | 13,659,143 | 13,844,353 |
Common stock, outstanding (in shares) | 13,659,143 | 13,844,353 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | ||
Interest income | |||||
Interest and fees on loans | $ 20,988 | $ 19,624 | $ 41,683 | $ 38,511 | |
Interest on investment securities | 3,763 | 3,499 | 7,860 | 6,656 | |
Interest on federal funds sold and due from banks | 190 | 285 | 329 | 688 | |
Total interest income | 24,941 | 23,408 | 49,872 | 45,855 | |
Interest expense | |||||
Interest on interest-bearing transaction accounts | 91 | 48 | 168 | 100 | |
Interest on savings accounts | 17 | 18 | 35 | 36 | |
Interest on money market accounts | 787 | 236 | 1,551 | 452 | |
Interest on time accounts | 175 | 140 | 294 | 296 | |
Interest on borrowings and other obligations | 24 | 1 | 71 | 1 | |
Interest on subordinated debentures | 58 | 123 | 118 | 237 | |
Total interest expense | 1,152 | 566 | 2,237 | 1,122 | |
Net interest income | 23,789 | 22,842 | 47,635 | 44,733 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 23,789 | 22,842 | 47,635 | 44,733 | |
Non-interest income | |||||
Earnings on (cost of) bank-owned life insurance, net | 235 | 230 | 175 | 458 | |
Dividends on FHLB stock | 193 | 192 | 389 | 388 | |
Gains on investment securities, net | 61 | 11 | 55 | 11 | |
Other income | 326 | 384 | 583 | 734 | |
Total non-interest income | 2,274 | 2,238 | 4,045 | 4,480 | |
Non-interest expense | |||||
Salaries and related benefits | 8,868 | 8,316 | 18,014 | 17,333 | |
Occupancy and equipment | 1,578 | 1,511 | 3,109 | 3,018 | |
Depreciation and amortization | 572 | 546 | 1,128 | 1,093 | |
Federal Deposit Insurance Corporation insurance | 174 | 191 | 353 | 382 | |
Data processing | 1,004 | 1,023 | 2,019 | 2,404 | |
Professional services | 535 | 810 | 1,121 | 2,109 | |
Directors' expense | 187 | 183 | 366 | 357 | |
Information technology | 284 | 264 | 543 | 533 | |
Amortization of core deposit intangible | 221 | 230 | 443 | 460 | |
Provision for losses on off-balance sheet commitments | 0 | 0 | 129 | 0 | |
Other expense | 1,493 | 1,435 | 3,219 | 2,901 | |
Total non-interest expense | 14,916 | 14,509 | 30,444 | 30,590 | |
Income before provision for income taxes | 11,147 | 10,571 | 21,236 | 18,623 | |
Provision for income taxes | 2,912 | 2,680 | 5,522 | 4,343 | |
Net income | $ 8,235 | $ 7,891 | $ 15,714 | $ 14,280 | |
Net income per common share: | |||||
Basic (usd per share) | $ / shares | [1] | $ 0.60 | $ 0.57 | $ 1.15 | $ 1.03 |
Diluted (usd per share) | $ / shares | [1] | $ 0.60 | $ 0.56 | $ 1.13 | $ 1.02 |
Weighted average shares: | |||||
Basic (shares) | shares | [1] | 13,655 | 13,888 | 13,696 | 13,858 |
Diluted (shares) | shares | [1] | 13,818 | 14,066 | 13,871 | 14,039 |
Comprehensive income: | |||||
Net income | $ 8,235 | $ 7,891 | $ 15,714 | $ 14,280 | |
Other comprehensive income (loss) | |||||
Change in net unrealized gains or losses on available-for-sale securities | 8,982 | (1,131) | 12,921 | (7,301) | |
Reclassification adjustment for gains on available-for-sale securities in net income | (61) | (11) | (55) | (11) | |
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity | 0 | (278) | 0 | (278) | |
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity | 104 | 132 | 205 | 268 | |
Subtotal | 9,025 | (1,288) | 13,071 | (7,322) | |
Deferred tax expense (benefit) | 2,671 | (384) | 3,869 | (2,168) | |
Other comprehensive income (loss), net of tax | 6,354 | (904) | 9,202 | (5,154) | |
Comprehensive income | 14,589 | 6,987 | 24,916 | 9,126 | |
Deposit Account | |||||
Non-interest income | |||||
Service charges on deposit accounts, wealth management and trust services, debit card interchange fees net, and merchant interchange fees net | 485 | 455 | 964 | 932 | |
Fiduciary and Trust | |||||
Non-interest income | |||||
Service charges on deposit accounts, wealth management and trust services, debit card interchange fees net, and merchant interchange fees net | 473 | 488 | 911 | 1,003 | |
Debit Card | |||||
Non-interest income | |||||
Service charges on deposit accounts, wealth management and trust services, debit card interchange fees net, and merchant interchange fees net | 414 | 360 | 794 | 756 | |
Merchant Interchange Fees, Net | |||||
Non-interest income | |||||
Service charges on deposit accounts, wealth management and trust services, debit card interchange fees net, and merchant interchange fees net | $ 87 | $ 118 | $ 174 | $ 198 | |
[1] | Share and per share data have been adjusted to reflect the two -for-one stock split effective November 27, 2018. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) (AOCI), Net of Taxes | ||
Beginning balance (in shares) at Dec. 31, 2017 | 13,843,084 | |||||
Beginning balance at Dec. 31, 2017 | $ 297,025,000 | $ 143,967,000 | $ 155,544,000 | $ (2,486,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Reclassification of stranded tax effects in AOCI | 638,000 | |||||
Ending balance (in shares) at Mar. 31, 2018 | [1] | 13,970,252 | ||||
Ending balance at Mar. 31, 2018 | 298,464,000 | $ 145,282,000 | 160,556,000 | (7,374,000) | ||
Beginning balance (in shares) at Dec. 31, 2017 | 13,843,084 | |||||
Beginning balance at Dec. 31, 2017 | 297,025,000 | $ 143,967,000 | 155,544,000 | (2,486,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 14,280,000 | 14,280,000 | ||||
Other comprehensive income (loss) | (5,154,000) | (5,154,000) | ||||
Reclassification of stranded tax effects in AOCI | 638,000 | (638,000) | ||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings (in shares) | 100,150 | |||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 534,000 | $ 534,000 | ||||
Stock issued under employee stock purchase plan (in shares) | 530 | |||||
Stock issued under employee stock purchase plan | 19,000 | $ 19,000 | ||||
Stock issued under employee stock ownership plan (ESOP) (in shares) | 15,800 | |||||
Stock issued under employee stock ownership plan (ESOP) | 601,000 | $ 601,000 | ||||
Restricted stock granted (in shares) | 37,040 | |||||
Restricted stock granted | 0 | |||||
Restricted stock surrendered for tax withholdings upon vesting (in shares) | (1,316) | |||||
Restricted stock surrendered for tax withholdings upon vesting | (45,000) | $ (45,000) | ||||
Restricted stock forfeited / cancelled | (12,056) | |||||
Stock-based compensation - stock options | 442,000 | 442,000 | ||||
Stock-based compensation - restricted stock | 672,000 | $ 672,000 | ||||
Cash dividends paid on common stock | (4,181,000) | (4,181,000) | ||||
Stock purchased by directors under director stock plan (in shares) | 520 | |||||
Stock purchased by directors under director stock plan | 18,000 | $ 18,000 | ||||
Stock issued in payment of director fees (in shares) | 2,686 | |||||
Stock issued in payment of director fees | 91,000 | $ 91,000 | ||||
Stock repurchased, net of commissions (in shares) | (2,796) | |||||
Stock repurchased, net of commissions | (104,000) | $ (104,000) | ||||
Ending balance (in shares) at Jun. 30, 2018 | [1] | 13,983,642 | ||||
Ending balance at Jun. 30, 2018 | 304,198,000 | $ 146,195,000 | 166,281,000 | (8,278,000) | ||
Beginning balance (in shares) at Dec. 31, 2017 | 13,843,084 | |||||
Beginning balance at Dec. 31, 2017 | $ 297,025,000 | $ 143,967,000 | 155,544,000 | (2,486,000) | ||
Ending balance (in shares) at Dec. 31, 2018 | 13,844,353 | 13,844,353 | ||||
Ending balance at Dec. 31, 2018 | $ 316,407,000 | $ 140,565,000 | 179,944,000 | (4,102,000) | ||
Beginning balance (in shares) at Mar. 31, 2018 | [1] | 13,970,252 | ||||
Beginning balance at Mar. 31, 2018 | 298,464,000 | $ 145,282,000 | 160,556,000 | (7,374,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7,891,000 | 7,891,000 | ||||
Other comprehensive income (loss) | (904,000) | (904,000) | ||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings (in shares) | 4,576 | |||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 81,000 | $ 81,000 | ||||
Stock issued under employee stock purchase plan (in shares) | 226 | |||||
Stock issued under employee stock purchase plan | 9,000 | $ 9,000 | ||||
Stock issued under employee stock ownership plan (ESOP) (in shares) | 15,800 | |||||
Stock issued under employee stock ownership plan (ESOP) | 601,000 | $ 601,000 | ||||
Restricted stock surrendered for tax withholdings upon vesting (in shares) | (514) | |||||
Restricted stock surrendered for tax withholdings upon vesting | (17,000) | $ (17,000) | ||||
Restricted stock forfeited / cancelled (in shares) | (3,902) | |||||
Stock-based compensation - stock options | 126,000 | $ 126,000 | ||||
Stock-based compensation - restricted stock | 217,000 | $ 217,000 | ||||
Cash dividends paid on common stock | (2,166,000) | (2,166,000) | ||||
Stock repurchased, net of commissions (in shares) | (2,796) | |||||
Stock repurchased, net of commissions | (104,000) | $ (104,000) | ||||
Ending balance (in shares) at Jun. 30, 2018 | [1] | 13,983,642 | ||||
Ending balance at Jun. 30, 2018 | $ 304,198,000 | $ 146,195,000 | 166,281,000 | (8,278,000) | ||
Beginning balance (in shares) at Dec. 31, 2018 | 13,844,353 | 13,844,353 | ||||
Beginning balance at Dec. 31, 2018 | $ 316,407,000 | $ 140,565,000 | 179,944,000 | (4,102,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,714,000 | 15,714,000 | ||||
Other comprehensive income (loss) | 9,202,000 | 9,202,000 | ||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings (in shares) | 37,475 | |||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 470,000 | $ 470,000 | ||||
Stock issued under employee stock purchase plan (in shares) | 751 | |||||
Stock issued under employee stock purchase plan | 29,000 | $ 29,000 | ||||
Stock issued under employee stock ownership plan (ESOP) (in shares) | 15,600 | |||||
Stock issued under employee stock ownership plan (ESOP) | 625,000 | $ 625,000 | ||||
Restricted stock granted (in shares) | 29,110 | |||||
Restricted stock granted | 0 | |||||
Restricted stock surrendered for tax withholdings upon vesting (in shares) | (5,240) | |||||
Restricted stock surrendered for tax withholdings upon vesting | (220,000) | $ (220,000) | ||||
Restricted stock forfeited / cancelled (in shares) | (17,325) | |||||
Stock-based compensation - stock options | 340,000 | $ 340,000 | ||||
Stock-based compensation - restricted stock | 664,000 | $ 664,000 | ||||
Cash dividends paid on common stock | (5,242,000) | (5,242,000) | ||||
Stock purchased by directors under director stock plan (in shares) | 199 | |||||
Stock purchased by directors under director stock plan | 8,000 | $ 8,000 | ||||
Stock issued in payment of director fees (in shares) | 2,744 | |||||
Stock issued in payment of director fees | 114,000 | $ 114,000 | ||||
Stock repurchased, net of commissions (in shares) | (248,524) | |||||
Stock repurchased, net of commissions | $ (10,444,000) | $ (10,444,000) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 13,659,143 | 13,659,143 | [1] | |||
Ending balance at Jun. 30, 2019 | $ 327,667,000 | $ 132,151,000 | 190,416,000 | 5,100,000 | ||
Beginning balance (in shares) at Mar. 31, 2019 | [1] | 13,786,808 | ||||
Beginning balance at Mar. 31, 2019 | 320,664,000 | $ 137,125,000 | 184,793,000 | (1,254,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 8,235,000 | 8,235,000 | ||||
Other comprehensive income (loss) | 6,354,000 | 6,354,000 | ||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings (in shares) | 9,333 | |||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 211,000 | $ 211,000 | ||||
Stock issued under employee stock purchase plan (in shares) | 374 | |||||
Stock issued under employee stock purchase plan | 15,000 | $ 15,000 | ||||
Stock issued under employee stock ownership plan (ESOP) (in shares) | 7,600 | |||||
Stock issued under employee stock ownership plan (ESOP) | 312,000 | $ 312,000 | ||||
Restricted stock surrendered for tax withholdings upon vesting (in shares) | (420) | |||||
Restricted stock surrendered for tax withholdings upon vesting | (18,000) | $ (18,000) | ||||
Restricted stock forfeited / cancelled (in shares) | (9,932) | |||||
Stock-based compensation - stock options | 55,000 | $ 55,000 | ||||
Stock-based compensation - restricted stock | 95,000 | $ 95,000 | ||||
Cash dividends paid on common stock | (2,612,000) | (2,612,000) | ||||
Stock repurchased, net of commissions (in shares) | (134,620) | |||||
Stock repurchased, net of commissions | $ (5,644,000) | $ (5,644,000) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 13,659,143 | 13,659,143 | [1] | |||
Ending balance at Jun. 30, 2019 | $ 327,667,000 | $ 132,151,000 | $ 190,416,000 | $ 5,100,000 | ||
[1] | Share and per share data have been adjusted to reflect the two -for-one stock split effective November 27, 2018. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid on common stock (in usd per share) | $ 0.19 | $ 0.155 | $ 0.38 | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 15,714 | $ 14,280 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for losses on off-balance sheet commitments | 129 | 0 |
Noncash contribution expense to employee stock ownership plan | 625 | 601 |
Noncash director compensation expense | 151 | 146 |
Stock-based compensation expense | 1,004 | 1,114 |
Amortization of core deposit intangible | 443 | 460 |
Amortization of investment security premiums, net of accretion of discounts | 924 | 1,496 |
Accretion of discount on acquired loans | (154) | (428) |
Accretion of discount on subordinated debentures | 34 | 63 |
Net change in deferred loan origination costs/fees | (146) | 18 |
Gain on sale of investment securities | (55) | (11) |
Depreciation and amortization | 1,128 | 1,093 |
Earnings on bank-owned life insurance policies | (175) | (458) |
Net change in operating assets and liabilities: | ||
Interest receivable and other assets | (583) | (971) |
Interest payable and other liabilities | (2,131) | 1,364 |
Total adjustments | 1,194 | 4,487 |
Net cash provided by operating activities | 16,908 | 18,767 |
Cash Flows from Investing Activities: | ||
Purchase of held-to-maturity securities | 0 | (1,989) |
Purchase of available-for-sale securities | (11,282) | (121,269) |
Proceeds from sale of available-for-sale securities | 66,081 | 5,006 |
Proceeds from paydowns/maturities of held-to-maturity securities | 8,157 | 9,615 |
Proceeds from paydowns/maturities of available-for-sale securities | 41,905 | 24,540 |
Loans originated and principal collected, net | 234 | (38,835) |
Purchase of bank-owned life insurance policies | (1,892) | 0 |
Purchase of premises and equipment | (244) | (446) |
Cash paid for low-income housing tax credit investment | (38) | (373) |
Net cash provided by (used in) investing activities | 102,921 | (123,751) |
Cash Flows from Financing Activities: | ||
Net decrease in deposits | (72,800) | (10,947) |
Proceeds from stock options exercised | 470 | 585 |
Payment of tax withholdings for stock options exercised and vesting of restricted stock | (220) | (96) |
Proceeds from stock issued under employee and director stock purchase plans | 37 | 37 |
Stock repurchased, net of commissions | (10,455) | (104) |
Repayment of Federal Home Loan Bank borrowings | (7,000) | 0 |
Repayment of finance lease obligations | (83) | 0 |
Cash dividends paid on common stock | (5,242) | (4,181) |
Net cash used in financing activities | (95,293) | (14,706) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 24,536 | (119,690) |
Cash, cash equivalents and restricted cash at beginning of period | 34,221 | 203,545 |
Cash, cash equivalents and restricted cash at end of period | 58,757 | 83,855 |
Supplemental disclosure of cash flow information: | ||
Cash paid in interest | 2,191 | 1,083 |
Cash paid in income taxes | 6,925 | 2,000 |
Supplemental disclosure of noncash investing and financing activities: | ||
Change in net unrealized gain or loss on available-for-sale securities | 12,921 | (7,301) |
Securities transferred from available-for-sale to held-to-maturity | 0 | 27,422 |
Amortization of net unrealized loss on available-for-sale securities transferred to held-to-maturity | 205 | 268 |
Subscription in low-income housing tax credit investment | 0 | (3,000) |
Stock issued to ESOP | 625 | 601 |
Stock issued in payment of director fees | 114 | 91 |
Repurchase of stock not yet settled | 132 | 0 |
Restricted cash: | ||
Federal Reserve Bank reserve balance requirements included in cash, cash equivalents and restricted cash | $ 9,709 | $ 10,915 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Bank of Marin Bancorp (“Bancorp”), a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin (the “Bank”), a California state-chartered commercial bank. References to “we,” “our,” “us” mean Bancorp and the Bank that are consolidated for financial reporting purposes. The accompanying unaudited consolidated interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. Although we believe that the disclosures are adequate and the information presented is not misleading, we suggest that these interim financial statements be read in conjunction with the annual financial statements and the notes thereto included in our 2018 Annual Report on Form 10-K. In the opinion of Management, the unaudited consolidated financial statements reflect all adjustments, which are necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income, changes in stockholders’ equity, and cash flows for the periods presented. All material intercompany transactions have been eliminated. The results of these interim periods may not be indicative of the results for the full year or for any other period. The NorCal Community Bancorp Trusts I and II, respectively (the "Trusts") were formed for the sole purpose of issuing trust preferred securities. Bancorp is not considered the primary beneficiary of the Trusts (variable interest entities), therefore the Trusts are not consolidated in our consolidated financial statements, but rather the subordinated debentures are shown as a liability on our consolidated statements of condition. Bancorp's investment in the securities of the Trusts is accounted for under the equity method and is included in interest receivable and other assets on the consolidated statements of condition. Refer to Note 6, Borrowings, for detail on the early redemption on October 7, 2018 of one subordinated debenture due to NorCal Community Bancorp Trust I. The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in the quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities. Three months ended Six months ended (in thousands, except per share data) 1 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Weighted average basic shares outstanding 13,655 13,888 13,696 13,858 Potentially dilutive common shares related to: Stock options 142 149 149 149 Unvested restricted stock awards 21 29 26 32 Weighted average diluted shares outstanding 13,818 14,066 13,871 14,039 Net income $ 8,235 $ 7,891 $ 15,714 $ 14,280 Basic EPS $ 0.60 $ 0.57 $ 1.15 $ 1.03 Diluted EPS $ 0.60 $ 0.56 $ 1.13 $ 1.02 Weighted average anti-dilutive shares not included in the calculation of diluted EPS 44 60 30 69 1 Share and per share data have been adjusted to reflect the two -for-one stock split effective November 27, 2018. |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) (the "new lease accounting standard"). The amendments in this ASU intend to increase transparency and comparability among organizations by recognizing an operating lease or finance lease right-of-use asset for the lease term, and a lease liability, which is a lessee's obligation to make lease payments, recorded based on discounting future lease payments under the lease terms. This ASU generally applies to leasing arrangements exceeding a twelve-month term. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods beginning after December 15, 2018 and requires a modified retrospective method of adoption. In July 2018, the FASB issued two amendments to ASU 2016-02: ASU No. 2018-10, Codification Improvements to Topic 842, Leases , which provided various corrections and clarifications to ASU 2016-02; and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which permitted optional transition methods and provided lessors with a practical expedient for separating lease and non-lease components of a lease. The ASU allowed entities to apply either a modified retrospective approach at the beginning of the earliest period presented or at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings, which we adopted. As a result of the adoption of the ASU on January 1, 2019, we recorded operating and finance lease right-of-use assets totaling $13.4 million , net of deferred rent and unaccreted lease incentives, operating and finance lease liabilities totaling $15.4 million , and no cumulative-effect adjustments to retained earnings. Under the standard's transition guidance, we elected the package of practical expedients, which allowed us to carry forward existing lease classifications and did not require us to reassess initial direct costs for any existing leases. In addition, we elected the hindsight practical expedient when determining the lease term (i.e., considering whether we are reasonably certain to exercise options to extend or terminate the lease). We made accounting policy elections not to separate non-lease components from lease components and to exclude short-term leases (i.e., lease term of 12 months or less at the commencement date) from right-of-use assets and lease liabilities for all lease classifications. See Note 8, Commitments and Contingencies for further information. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This update simplifies the accounting for share-based payment transactions for acquiring goods and services from nonemployees, applying some of the same requirements as employee share-based payment transactions. The ASU will not affect the accounting for share-based payment awards to nonemployee directors, which will continue to be treated as employee share-based transactions under the current standards. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We adopted the requirements of this ASU effective January 1, 2019, which did not impact our financial condition or results of operations, as it is not our practice to issue stock-based awards to pay for goods and services from nonemployees, other than nonemployee directors. In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes . This update adds an alternative fifth permissible U.S. benchmark rate to be used for hedge accounting purposes. As we have already adopted the amendments in ASU 2017-12, which changed both the designation and measurement guidance for qualifying hedging relationships, the amendments in ASU 2018-16 are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The amendments should be adopted on a prospective basis for qualifying new or re-designated hedging relationships entered into on or after the date of adoption. Early adoption is permitted in any interim period upon issuance of this ASU if an entity already has adopted ASU 2017-12. We adopted this ASU effective January 1, 2019, which did not impact our financial condition or results of operations. Accounting Standards Not Yet Effective In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The standard will replace today's "incurred loss" model with a "current expected credit loss" ("CECL") model. The CECL model will apply to estimated credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. The CECL model is based on lifetime expected losses, rather than incurred losses, and requires the recognition of credit loss expense in the consolidated statement of income and a related allowance for credit losses on the consolidated statement of condition at the time of origination or purchase of a loan receivable or held-to-maturity debt security. Likewise, subsequent changes in this estimate are recorded through credit loss expense and related allowance. The CECL model requires the use of not only relevant historical experience and current conditions, but reasonable and supportable forecasts of future events and circumstances, incorporating a broad range of information in developing credit loss estimates, which could result in significant changes to both the timing and amount of credit loss expense and allowance. Under ASU 2016-13, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost. Estimated credit losses are recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income. The ASU also expands the disclosure requirements regarding assumptions, models, and methods for estimating the allowance for loan losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Entities will apply a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While we believe the change from an incurred loss model to a CECL model has the potential to increase the allowance for credit losses at the adoption date, the full impact to our financial condition or results of operations cannot be quantified at this time as we continue to evaluate the applicability and validity of our methodologies and assumptions. In addition, any estimate could be significantly influenced by the composition and risk characteristics of the loan portfolio as well as prevailing economic conditions and forecasts as of the adoption date. Our cross-functional team and our third-party CECL model vendor continue to make progress and we will be ready for adoption on January 1, 2020. Early implementation activities focused on, among other things, capturing and validating data, segmenting the loan portfolio, evaluating various credit loss estimation methodologies, sourcing tools to forecast future economic conditions, and running multiple loan loss driver analyses that correlate our credit loss experience with one or more economic factors. Based on these activities, we determined that our primary credit loss methodology will utilize a discounted cash flow approach that considers the probability of default and loss given default. Continuing implementation activities include refining estimated credit loss model assumptions, evaluating the qualitative factor framework and assumptions, drafting policies and disclosures, and evaluating, documenting and testing internal controls. In addition, we will continue to run parallel tests throughout 2019 to identify opportunities for enhancing our assumptions as the processes, internal controls and policies are finalized. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this ASU remove, modify, and add disclosure requirements for the fair value reporting of assets and liabilities. The modifications and additions relate to Level 3 fair value measurements at the end of the reporting period. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities should disclose and describe the range and weighted-average of significant observable inputs used to develop Level 3 fair value measurements prospectively. Early adoption is permitted. Entities making this election are permitted to early adopt the eliminated or modified disclosure requirements and delay the adoption of all the new disclosure requirements until the ASU's effective date. As the ASU’s requirements only relate to disclosures, the amendments will not impact our financial condition or results of operations. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This standard aligns the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, regardless of whether they convey a license to the hosted software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by this ASU. The amendments are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. An entity has the option to apply amendments in the ASU either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted, including adoption in an interim period. We do not expect that the ASU will have a material impact on our financial condition or results of operations. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements . This ASU addresses two lessor implementation issues and clarifies that lessees and lessors are exempt from certain interim disclosure requirements associated with adopting ASU 2016-02. The amendments related to the lessor implementation issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early application is permitted. As the ASU's amendments applicable to us only relate to disclosures, the adoption of ASU 2019-01 will not impact our financial condition or results of operations. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments that clarifies and improves areas of guidance related to recently issued standards on credit losses, hedging and recognition and measurement. The provisions of this ASU are effective January 1, 2020 and contain various methods of adoption. We do not expect that the ASU will have a material impact on our financial condition or results of operations. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief . This ASU allows an option for entities to irrevocably elect the fair value option on an instrument-by-instrument basis for eligible financial assets measured at amortized cost basis upon adoption of the credit loss standards. This amendment provides relief for those entities electing the fair value option on newly originated or purchased financial assets, while maintaining existing similar financial assets at amortized cost, avoiding the requirement to maintain dual measurement methods for similar assets. The fair value option does not apply to held-to-maturity debt securities. The effective date for this ASU is the same as for ASU 2016-13, as discussed above. We will evaluate this ASU in conjunction with ASU 2016-13 to determine its impact on our financial condition and results of operations. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair Value Hierarchy and Fair Value Measurement We group our assets and liabilities that are measured at fair value in three levels within the fair value hierarchy, 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: Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data. Level 3: Valuations are based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Values are determined using pricing models and discounted cash flow models and may include significant Management judgment and estimation. Transfers between levels of the fair value hierarchy are recognized through our monthly and/or quarterly valuation process in the reporting period during which the event or circumstances that caused the transfer occurred. No such transfers occurred during the first three and six months of 2019 or 2018. The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis. (in thousands) Description of Financial Instruments Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measurement Categories: Changes in Fair Value Recorded In 1 June 30, 2019 Securities available-for-sale: Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies $ 258,115 $ — $ 258,115 $ — OCI SBA-backed securities 39,805 — 39,805 — OCI Debentures of government sponsored agencies 28,784 — 28,784 — OCI Privately-issued collateralized mortgage obligations 159 — 159 — OCI Obligations of state and political subdivisions 49,259 — 49,259 — OCI Corporate bonds 2,009 — 2,009 — OCI Derivative financial assets (interest rate contracts) — — — — NI Derivative financial liabilities (interest rate contracts) 1,118 — 1,118 — NI December 31, 2018 Securities available-for-sale: Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies $ 278,403 $ — $ 278,403 $ — OCI SBA-backed securities 50,781 — 50,781 — OCI Debentures of government sponsored agencies 53,018 — 53,018 — OCI Privately-issued collateralized mortgage obligations 297 — 297 — OCI Obligations of state and political subdivisions 77,960 — 77,960 — OCI Corporate bonds 2,005 — 2,005 — OCI Derivative financial assets (interest rate contracts) 161 — 161 — NI Derivative financial liabilities (interest rate contracts) 375 — 375 — NI 1 Other comprehensive income ("OCI") or net income ("NI"). Securities available-for-sale are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1) are used to determine the fair value of securities available-for-sale. If quoted market prices are not available, we obtain pricing information from a reputable third-party service provider, who may utilize valuation techniques that use current market-based or independently sourced parameters, such as bid/ask prices, dealer-quoted prices, interest rates, benchmark yield curves, prepayment speeds, probability of default, loss severity and credit spreads (Level 2). Level 2 securities include obligations of state and political subdivisions, U.S. agencies or government-sponsored agencies' debt securities, mortgage-backed securities, government agency-issued, privately-issued collateralized mortgage obligations, and corporate bonds. As of June 30, 2019 and December 31, 2018 , there were no Level 1 or Level 3 securities. Securities held-to-maturity may be written down to fair value (determined using the same techniques discussed above for securities available-for-sale) as a result of other-than-temporary impairment, and we did not record any write-downs during the six months ended June 30, 2019 or June 30, 2018 . On a recurring basis, derivative financial instruments are recorded at fair value, which is based on the income approach using observable Level 2 market inputs, reflecting market expectations of future interest rates as of the measurement date. Standard valuation techniques are used to calculate the present value of the future expected cash flows assuming an orderly transaction. Valuation adjustments may be made to reflect both our own credit risk and the counterparties’ credit risk in determining the fair value of the derivatives. Level 2 inputs for the valuations are limited to observable market prices for London Interbank Offered Rate ("LIBOR") and Overnight Index Swap ("OIS") rates (for the very short term), quoted prices for LIBOR futures contracts, observable market prices for LIBOR and OIS swap rates, and one-month and three-month LIBOR basis spreads at commonly quoted intervals. Mid-market pricing of the inputs is used as a practical expedient in the fair value measurements. We project spot rates at reset days specified by each swap contract to determine future cash flows, then discount to present value using either LIBOR or OIS curves depending on whether the swap positions are fully collateralized as of the measurement date. When the value of any collateral placed with counterparties is less than the interest rate derivative liability, a credit valuation adjustment ("CVA") is applied to reflect the credit risk we pose to counterparties. We have used the spread between the Standard & Poor's BBB rated U.S. Bank Composite rate and LIBOR for the closest maturity term corresponding to the duration of the swaps to derive the CVA. A similar credit risk adjustment, correlated to the credit standing of the counterparty, is made when collateral posted by the counterparty does not fully cover their liability to us. For further discussion on our methodology in valuing our derivative financial instruments, refer to Note 9, Derivative Financial Instruments and Hedging Activities. Certain financial assets may be measured at fair value on a non-recurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as impaired loans that are collateral dependent and other real estate owned ("OREO"). As of June 30, 2019 and December 31, 2018 , we did not carry any assets measured at fair value on a non-recurring basis. Disclosures about Fair Value of Financial Instruments The table below is a summary of fair value estimates for financial instruments as of June 30, 2019 and December 31, 2018 , excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI") and non-maturity deposit liabilities. Additionally, we hold shares of FHLB stock and Visa Inc. Class B common stock, both recorded at cost, as there was no impairment or changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of June 30, 2019 and December 31, 2018 . The values are discussed in Note 4, Investment Securities. June 30, 2019 December 31, 2018 (in thousands) Carrying Amounts Fair Value Fair Value Hierarchy Carrying Amounts Fair Value Fair Value Hierarchy Financial assets (recorded at amortized cost) Cash and cash equivalents $ 58,757 $ 58,757 Level 1 $ 34,221 $ 34,221 Level 1 Investment securities held-to-maturity 148,879 151,118 Level 2 157,206 153,894 Level 2 Loans, net 1,749,044 1,760,974 Level 3 1,748,043 1,700,971 Level 3 Interest receivable 8,071 8,071 Level 2 8,292 8,292 Level 2 Financial liabilities (recorded at amortized cost) Time deposits 104,306 103,359 Level 2 117,182 116,584 Level 2 Federal Home Loan Bank overnight borrowings — — Level 2 7,000 7,000 Level 2 Subordinated debentures 2,674 3,289 Level 3 2,640 3,268 Level 3 Interest payable 115 115 Level 2 104 104 Level 2 Commitments - The value of unrecognized financial instruments is estimated based on the fee income associated with the commitments which, in the absence of credit exposure, is considered to approximate their settlement value. The fair value of commitment fees was not material as of June 30, 2019 or December 31, 2018 . |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Our investment securities portfolio consists of obligations of state and political subdivisions, U.S. corporations, U.S. federal government agencies such as Government National Mortgage Association ("GNMA") and Small Business Administration ("SBA"), U.S. government-sponsored enterprise securities ("GSEs"), such as Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), Federal Farm Credit Banks Funding Corporation and FHLB. We also invest in residential and commercial mortgage-backed securities (“MBS”/"CMBS") and collateralized mortgage obligations (“CMOs”) issued or guaranteed by the GSEs, and privately issued CMOs, as reflected in the following table: June 30, 2019 December 31, 2018 Amortized Fair Gross Unrealized Amortized Fair Gross Unrealized (in thousands) Cost Value Gains (Losses) Cost Value Gains (Losses) Held-to-maturity: Securities of U.S. government-sponsored enterprises: MBS pass-through securities issued by FHLMC and FNMA $ 83,493 $ 84,121 $ 967 $ (339 ) $ 88,606 $ 85,804 $ 7 $ (2,809 ) SBA-backed securities 8,401 8,779 378 — 8,720 8,757 37 — CMOs issued by FNMA 10,972 11,250 278 — 11,447 11,327 — (120 ) CMOs issued by FHLMC 33,095 33,880 805 (20 ) 33,583 33,021 8 (570 ) CMOs issued by GNMA 3,750 3,810 60 — 3,739 3,769 30 — Obligations of state and political subdivisions 9,168 9,278 110 — 11,111 11,216 128 (23 ) Total held-to-maturity 148,879 151,118 2,598 (359 ) 157,206 153,894 210 (3,522 ) Available-for-sale: Securities of U.S. government-sponsored enterprises: MBS pass-through securities issued by FHLMC and FNMA 70,550 72,144 1,644 (50 ) 95,339 94,467 358 (1,230 ) SBA-backed securities 38,363 39,805 1,498 (56 ) 50,722 50,781 465 (406 ) CMOs issued by FNMA 25,832 26,175 352 (9 ) 28,275 28,079 134 (330 ) CMOs issued by FHLMC 142,175 146,528 4,410 (57 ) 145,979 144,836 454 (1,597 ) CMOs issued by GNMA 13,275 13,268 33 (40 ) 11,294 11,021 1 (274 ) Debentures of government- sponsored agencies 28,035 28,784 749 — 52,956 53,018 185 (123 ) Privately issued CMOs 159 159 1 (1 ) 295 297 2 — Obligations of state and political subdivisions 48,323 49,259 1,012 (76 ) 79,046 77,960 134 (1,220 ) Corporate bonds 2,000 2,009 10 (1 ) 2,004 2,005 15 (14 ) Total available-for-sale 368,712 378,131 9,709 (290 ) 465,910 462,464 1,748 (5,194 ) Total investment securities $ 517,591 $ 529,249 $ 12,307 $ (649 ) $ 623,116 $ 616,358 $ 1,958 $ (8,716 ) The amortized cost a nd fair value of investment debt securities by contractual maturity at June 30, 2019 and December 31, 2018 are shown in the following table below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2019 December 31, 2018 Held-to-Maturity Available-for-Sale Held-to-Maturity Available-for-Sale (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 6,088 $ 6,095 $ 9,763 $ 9,753 $ 6,194 $ 6,182 $ 9,863 $ 9,795 After one but within five years 3,637 3,694 64,474 65,498 5,481 5,492 84,871 84,435 After five years through ten years 57,679 59,303 195,243 201,925 59,231 58,120 252,274 250,055 After ten years 81,475 82,026 99,232 100,955 86,300 84,100 118,902 118,179 Total $ 148,879 $ 151,118 $ 368,712 $ 378,131 $ 157,206 $ 153,894 $ 465,910 $ 462,464 Sales of investment securities and gross gains and losses are shown in the following table. Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Available-for-sale: Sales proceeds $ 61,852 $ 5,006 $ 66,081 $ 5,006 Gross realized gains 211 27 214 27 Gross realized losses (150 ) (16 ) (159 ) (16 ) Pledged investment securities are shown in the following table. (in thousands) June 30, 2019 December 31, 2018 Pledged to the State of California: Secure public deposits in compliance with the Local Agency Security Program $ 97,974 $ 125,696 Collateral for trust deposits 723 734 Total investment securities pledged to the State of California $ 98,697 $ 126,430 Collateral for Wealth Management and Trust Services checking account $ 1,990 $ 2,000 Other-Than-Temporarily Impaired ("OTTI") Debt Securities There were 56 and 229 securities in unrealized loss positions at June 30, 2019 and December 31, 2018 , respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below: June 30, 2019 < 12 continuous months ≥ 12 continuous months Total securities in a loss position (in thousands) Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Held-to-maturity: MBS pass-through securities issued by FHLMC and FNMA $ 343 $ (3 ) $ 34,714 $ (336 ) $ 35,057 $ (339 ) CMOs issued by FHLMC — — 3,205 (20 ) 3,205 (20 ) Total held-to-maturity 343 (3 ) 37,919 (356 ) 38,262 (359 ) Available-for-sale: MBS pass-through securities issued by FHLMC and FNMA — — 13,537 (50 ) 13,537 (50 ) SBA-backed securities — — 3,113 (56 ) 3,113 (56 ) CMOs issued by FNMA — — 3,877 (9 ) 3,877 (9 ) CMOs issued by FHLMC 8,153 (2 ) 17,767 (55 ) 25,920 (57 ) CMOs issued by GNMA 56 (1 ) 7,948 (39 ) 8,004 (40 ) Debentures of government- sponsored agencies — — — — — — Privately issued CMOs 81 (1 ) — — 81 (1 ) Obligations of state and political subdivisions — — 9,395 (76 ) 9,395 (76 ) Corporate bonds — — 1,008 (1 ) 1,008 (1 ) Total available-for-sale 8,290 (4 ) 56,645 (286 ) 64,935 (290 ) Total temporarily impaired securities $ 8,633 $ (7 ) $ 94,564 $ (642 ) $ 103,197 $ (649 ) December 31, 2018 < 12 continuous months ≥ 12 continuous months Total securities in a loss position (in thousands) Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Held-to-maturity: MBS pass-through securities issued by FHLMC and FNMA $ 198 $ (9 ) $ 83,990 $ (2,800 ) $ 84,188 $ (2,809 ) CMOs issued by FNMA — — 11,327 (120 ) 11,327 (120 ) CMOs issued by FHLMC 2,880 (3 ) 28,171 (567 ) 31,051 (570 ) Obligations of state and political subdivisions — — 3,565 (23 ) 3,565 (23 ) Total held-to-maturity 3,078 (12 ) 127,053 (3,510 ) 130,131 (3,522 ) Available-for-sale: MBS pass-through securities issued by FHLMC and FNMA 19,971 (128 ) 50,077 (1,102 ) 70,048 (1,230 ) SBA-backed securities 13,175 (122 ) 20,123 (284 ) 33,298 (406 ) CMOs issued by FNMA 2,345 (8 ) 16,138 (322 ) 18,483 (330 ) CMOs issued by FHLMC 24,094 (330 ) 74,243 (1,267 ) 98,337 (1,597 ) CMOs issued by GNMA 1,666 (7 ) 9,112 (267 ) 10,778 (274 ) Debentures of government- sponsored agencies 4,992 (8 ) 11,349 (115 ) 16,341 (123 ) Obligations of state and political subdivisions 15,290 (54 ) 52,804 (1,166 ) 68,094 (1,220 ) Corporate Bonds — — 1,004 (14 ) 1,004 (14 ) Total available-for-sale 81,533 (657 ) 234,850 (4,537 ) 316,383 (5,194 ) Total temporarily impaired securities $ 84,611 $ (669 ) $ 361,903 $ (8,047 ) $ 446,514 $ (8,716 ) As of June 30, 2019 , the investment portfolio included 48 investment securities that had been in a continuous loss position for twelve months or more and 8 investment securities that had been in a loss position for less than twelve months. Securities issued by government-sponsored agencies, such as FNMA and FHLMC, usually have implicit credit support by the U.S. federal government. However, since 2008, FNMA and FHLMC have been under government conservatorship and, therefore, contractual cash flows for these investments carry explicit guarantees by the U.S. federal government. Securities issued by the SBA and GNMA have explicit credit guarantees by the U.S. federal government, which protects us from credit losses on the contractual cash flows of the securities. Other temporarily impaired securities, including obligations of state and political subdivisions and corporate bonds, were deemed credit worthy after our internal analyses of the issuers’ latest financial information, credit ratings by major credit agencies, and/or credit enhancements. Based on our comprehensive analyses, we determined that the decline in the fair values of these securities was primarily driven by factors other than credit, such as changes in market interest rates and liquidity spreads subsequent to purchase. At June 30, 2019 , Management determined that it did not intend to sell investment securities with unrealized losses, and it is more likely than not that we will not be required to sell any of the securities with unrealized losses before recovery of their amortized cost. Therefore, we do not consider these investment securities to be other-than-temporarily impaired at June 30, 2019 . Non-Marketable Securities As a member of the FHLB, we are required to maintain a minimum investment in FHLB capital stock determined by the Board of Directors of the FHLB. The minimum investment requirements can increase in the event we increase our total asset size or borrowings with the FHLB. Shares cannot be purchased or sold except between the FHLB and its members at the $100 per share par value. We held $11.7 million and $11.1 million of FHLB stock included in other assets on the consolidated statements of condition at June 30, 2019 and December 31, 2018 , respectively. The carrying amounts of these investments are reasonable estimates of fair value because the securities are restricted to member banks and they do not have a readily determinable market value. Based on our analysis of FHLB's financial condition and certain qualitative factors, we determined that the FHLB stock was not impaired at June 30, 2019 and December 31, 2018 . On July 25, 2019, FHLB announced a cash dividend for the second quarter of 2019 at an annualized dividend rate of 7.00% to be distributed in mid-August 2019. Cash dividends paid on FHLB capital stock are recorded as non-interest income. As a member bank of Visa U.S.A., we held 10,439 shares of Visa Inc. Class B common stock at June 30, 2019 and December 31, 2018 . These shares have a carrying value of zero and are restricted from resale to non-member banks of Visa U.S.A. until their conversion into Class A (voting) shares upon the termination of Visa Inc.'s Covered Litigation escrow account. Because of the restriction and the uncertainty on the conversion rate to Class A shares, these shares lack a readily determinable fair value. When converting this Class B common stock to Class A common stock based on the conversion rate of 1.6298 both as of June 30, 2019 and December 31, 2018 , and the closing stock price of Class A shares at those respective dates, the converted value of our shares of Class B common stock would have been $3.0 million and $2.2 million at June 30, 2019 and December 31, 2018 , respectively. The conversion rate is subject to further adjustment upon the final settlement of the covered litigation against Visa Inc. and its member banks. As such, the fair value of these Class B shares can differ significantly from their converted values. For further information, refer to Note 8, Commitments and Contingencies. We invest in low-income housing tax credit funds as a limited partner, which totaled $4.4 million and $4.6 million recorded in other assets as of June 30, 2019 and December 31, 2018 , respectively. In the first six months of 2019, we recognized $305 thousand of low-income housing tax credits and other tax benefits, offset by $232 thousand of amortization expense of low-income housing tax credit investment, as a component of income tax expense. As of June 30, 2019 , our unfunded commitments for these low-income housing tax credit funds totaled $3.1 million . We did not recognize any impairment losses on these low-income housing tax credit investments during the first six months of 2019 or 2018, as the value of the future tax benefits exceeds the carrying value of the investments. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Credit Quality of Loans The following table shows outstanding loans by class and payment aging as of June 30, 2019 and December 31, 2018 . Loan Aging Analysis by Class (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total June 30, 2019 30-59 days past due $ — $ — $ — $ — $ 272 $ — $ 144 $ 416 60-89 days past due — — — — — — 20 20 90 days or more past due — — — — 84 — — 84 Total past due — — — — 356 — 164 520 Current 234,832 306,327 878,969 63,563 125,612 124,120 30,936 1,764,359 Total loans 2 $ 234,832 $ 306,327 $ 878,969 $ 63,563 $ 125,968 $ 124,120 $ 31,100 $ 1,764,879 Non-accrual loans 1 $ 354 $ — $ — $ — $ 157 $ — $ 63 $ 574 December 31, 2018 30-59 days past due $ 5 $ — $ 1,004 $ — $ — $ — $ 112 $ 1,121 60-89 days past due — — — — — — — — 90 days or more past due — — — — — — — — Total past due 5 — 1,004 — — — 112 1,121 Current 230,734 313,277 872,406 76,423 124,696 117,847 27,360 1,762,743 Total loans 2 $ 230,739 $ 313,277 $ 873,410 $ 76,423 $ 124,696 $ 117,847 $ 27,472 $ 1,763,864 Non-accrual loans 1 $ 319 $ — $ — $ — $ 313 $ — $ 65 $ 697 1 Includes no purchased credit impaired ("PCI") loans at June 30, 2019 and December 31, 2018 . Amounts exclude accreting PCI loans with carrying values totaling $2.1 million at June 30, 2019 and December 31, 2018 , as we have a reasonable expectation about future cash flows to be collected and we continue to recognize accretable yield on these loans in interest income. There were no accruing loans past due more than ninety days at June 30, 2019 or December 31, 2018 . 2 Amounts include net deferred loan origination costs of $781 thousand and $635 thousand at June 30, 2019 and December 31, 2018 , respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $669 thousand and $708 thousand at June 30, 2019 and December 31, 2018 , respectively. We generally make commercial loans to established small and mid-sized businesses to provide financing for their growth and working capital needs, equipment purchases and acquisitions. Management examines historical, current, and projected cash flows to determine the ability of the borrower to repay obligations as agreed. Commercial loans are made based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral and guarantor support. The cash flows of borrowers, however, may not occur as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed, such as accounts receivable and inventory, and typically include personal guarantees. We target stable businesses with guarantors who provide additional sources of repayment and have proven to be resilient in periods of economic stress. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans discussed above. We underwrite these loans to be repaid from cash flow and to be supported by real property collateral. Underwriting standards for commercial real estate loans include, but are not limited to, debt coverage and loan-to-value ratios. Furthermore, a large majority of our loans are guaranteed by the owners of the properties. Conditions in the real estate markets or in the general economy may adversely affect our commercial real estate loans. In the event of a vacancy, we expect guarantors to carry the loans until they find a replacement tenant. The owner's substantial equity investment provides a strong economic incentive to continue to support the commercial real estate projects. As such, we have generally experienced a relatively low level of loss and delinquencies in this portfolio. Construction loans are generally made to developers and builders to finance construction, renovation and occasionally land acquisitions in anticipation of near-term development. Construction loan borrowers provide for interest reserves that are used for the payment of interest during the development and marketing periods. When a construction loan is placed on nonaccrual status before the depletion of the interest reserve, we apply the interest funded by the interest reserve against the loan's principal balance. These loans are underwritten after evaluation of the borrower's financial strength, reputation, prior track record, and independent appraisals. We monitor all construction projects to determine whether they are on schedule, completed as planned and in accordance with the approved construction budgets. Significant events can affect the construction industry, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes. Estimates of construction costs and value associated with the completed project may be inaccurate. Repayment of construction loans is largely dependent on the ultimate success of the project. Consumer loans primarily consist of home equity lines of credit, other residential loans and floating homes, along with a small number of installment loans. Our other residential loans include tenancy-in-common fractional interest loans ("TIC") located almost entirely in San Francisco County. We originate consumer loans utilizing credit score information, debt-to-income ratio and loan-to-value ratio analysis. Diversification among consumer loan types, coupled with relatively small loan amounts that are spread across many individual borrowers, mitigates risk. We do not originate sub-prime residential mortgage loans, nor is it our practice to underwrite loans commonly referred to as "Alt-A mortgages," the characteristics of which are reduced documentation, borrowers with low FICO scores or collateral with high loan-to-value ratios. We use a risk rating system to evaluate asset quality, and to identify and monitor credit risk in individual loans, and in the loan portfolio. Our definitions of “Special Mention” risk graded loans, or worse, are consistent with those used by the Federal Deposit Insurance Corporation ("FDIC"). Our internally assigned grades are as follows: Pass and Watch : Loans to borrowers of acceptable or better credit quality. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history, and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Bank’s policy regarding debt-service-coverage ratios. These borrowers are capable of sustaining normal economic, market or operational setbacks without significant financial consequences. Negative external industry factors are generally not present. The loan may be secured, unsecured or supported by non-real estate collateral for which the value is more difficult to determine and/or marketability is more uncertain. This category also includes “Watch” loans, where the primary source of repayment has been delayed. “Watch” is intended to be a transitional grade, with either an upgrade or downgrade within a reasonable period. Special Mention : Potential weaknesses that deserve close attention. If left uncorrected, those potential weaknesses may result in deterioration of the payment prospects for the asset. Special Mention assets do not present sufficient risk to warrant adverse classification. Substandard : Inadequately protected by either the current sound worth and paying capacity of the obligor or the collateral pledged, if any. A Substandard asset has a well-defined weakness or weaknesses that jeopardize(s) the liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if such weaknesses or deficiencies are not corrected. Well-defined weaknesses include adverse trends or developments of the borrower’s financial condition, managerial weaknesses and/or significant collateral deficiencies. Doubtful : Critical weaknesses that make collection or liquidation in full improbable. There may be specific pending events that work to strengthen the asset; however, the amount or timing of the loss may not be determinable. Pending events generally occur within one year of the asset being classified as Doubtful. Examples include: merger, acquisition, or liquidation; capital injection; guarantee; perfecting liens on additional collateral; and refinancing. Such loans are placed on non-accrual status and usually are collateral-dependent. We regularly review our credits for accuracy of risk grades whenever we receive new information. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk and complexity. In addition, investor commercial real estate borrowers are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We review home equity and other consumer loans based on delinquency. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly. The following table represents an analysis of the carrying amount in loans, net of deferred fees and costs and purchase premiums or discounts, by internally assigned risk grades, including PCI loans, at June 30, 2019 and December 31, 2018 . Credit Risk Profile by Internally Assigned Risk Grade (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Purchased credit-impaired Total June 30, 2019 Pass $ 208,201 $ 285,221 $ 875,504 $ 63,563 $ 123,440 $ 124,120 $ 30,947 $ 2,081 $ 1,713,077 Special Mention 25,926 10,861 2,643 — 2,121 — — — 41,551 Substandard 688 9,080 — — 330 — 153 — 10,251 Total loans $ 234,815 $ 305,162 $ 878,147 $ 63,563 $ 125,891 $ 124,120 $ 31,100 $ 2,081 $ 1,764,879 December 31, 2018 Pass $ 219,625 $ 299,998 $ 870,443 $ 73,735 $ 122,844 $ 117,847 $ 27,312 $ 2,112 $ 1,733,916 Special Mention 9,957 4,106 2,156 — 1,121 — — — 17,340 Substandard 1,126 7,986 — 2,688 648 — 160 — 12,608 Total loans $ 230,708 $ 312,090 $ 872,599 $ 76,423 $ 124,613 $ 117,847 $ 27,472 $ 2,112 $ 1,763,864 Troubled Debt Restructuring Our loan portfolio includes certain loans modified in a troubled debt restructuring (“TDR”), where we have granted economic concessions to borrowers experiencing financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. TDRs on non-accrual status at the time of restructure may be returned to accruing status after Management considers the borrower’s sustained repayment performance for a reasonable period, generally six months, and obtains reasonable assurance of repayment and performance. We may remove a loan from TDR designation if it meets all of the following conditions: • The loan is subsequently refinanced or restructured at current market interest rates and the new terms are consistent with the treatment of creditworthy borrowers under regular underwriting standards; • The borrower is no longer considered to be in financial difficulty; • Performance on the loan is reasonably assured; and • Existing loan did not have any forgiveness of principal or interest. The same Management level that approved the loan classification upgrade must approve the removal of TDR status. There was one commercial loan with a recorded investment of $3 thousand and one TIC loan with a recorded investment of $150 thousand removed from TDR designation during the six months ended June 30, 2019 and 2018, respectively, after meeting all of the conditions above. The following table summarizes the carrying amount of TDR loans by loan class as of June 30, 2019 and December 31, 2018 . (in thousands) Recorded Investment in Troubled Debt Restructurings 1 June 30, 2019 December 31, 2018 Commercial and industrial $ 1,433 $ 1,506 Commercial real estate, owner-occupied 7,000 6,993 Commercial real estate, investor 1,796 1,821 Construction 488 2,688 Home equity 251 251 Other residential 457 462 Installment and other consumer 665 685 Total $ 12,090 $ 14,406 1 There were no acquired TDR loans as of June 30, 2019 or December 31, 2018 . TDR loans on non-accrual status totaled $361 thousand and $65 thousand at June 30, 2019 and December 31, 2018 , respectively. The following table presents information for loans modified in a TDR during the presented periods, including the number of modified contracts, the recorded investment in the loans prior to modification, and the recorded investment in the loans at period end after being restructured. The table excludes fully charged-off TDR loans and loans modified in a TDR and subsequently paid-off during the years presented. (dollars in thousands) Number of Contracts Modified Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment at Period End TDRs during the three months ended June 30, 2019: Commercial and industrial 1 $ 298 $ 298 $ 298 TDRs during the three months ended June 30, 2018: Commercial and industrial 2 $ 254 $ 245 $ 235 TDRs during the six months ended June 30, 2019: Commercial and industrial 1 $ 298 $ 298 $ 298 TDRs during the six months ended June 30, 2018: Commercial and industrial 2 $ 254 $ 245 $ 235 The loan modified during the first six months of 2019 reflected a maturity extension and interest rate concession. The two loans modified during the first six months of 2018 were to the same borrower and included maturity extensions and other changes in loan terms. During the first six months of 2019 and 2018, there were no defaults on loans that had been modified in a TDR within the prior twelve-month period. We report defaulted TDRs based on a payment default definition of more than ninety days past due. Impaired Loans The following tables summarize information by class on impaired loans and their related allowances. Total impaired loans include non-accrual loans, accruing TDR loans and accreting PCI loans that have experienced post-acquisition declines in cash flows expected to be collected. (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total June 30, 2019 Recorded investment in impaired loans: With no specific allowance recorded $ 320 $ — $ — $ 488 $ 157 $ 457 $ 105 $ 1,527 With a specific allowance recorded 1,169 7,000 1,796 — 251 — 560 10,776 Total recorded investment in impaired loans $ 1,489 $ 7,000 $ 1,796 $ 488 $ 408 $ 457 $ 665 $ 12,303 Unpaid principal balance of impaired loans $ 1,472 $ 6,993 $ 1,789 $ 486 $ 407 $ 456 $ 664 $ 12,267 Specific allowance 342 123 42 — 5 — 64 576 Average recorded investment in impaired loans during the quarter ended June 30, 2019 1,498 7,000 1,804 1,590 503 458 670 13,523 Interest income recognized on impaired loans during the quarter ended June 30, 2019 1 19 66 20 13 29 5 6 158 Average recorded investment in impaired loans during the six months ended 1,607 6,998 1,809 1,956 523 460 675 14,028 Interest income recognized on impaired loans during the six months ended 1 41 132 39 56 33 9 13 323 Average recorded investment in impaired loans during the quarter ended June 30, 2018 2,092 7,005 1,849 2,833 736 990 708 16,213 Interest income recognized on impaired loans during the quarter ended June 30, 2018 1 28 66 20 37 5 13 8 177 Average recorded investment in impaired loans during the six months ended 2,104 7,003 1,956 2,878 742 1,043 712 16,438 Interest income recognized on impaired loans during the six months ended 1 183 132 42 75 10 26 15 483 1 Interest income recognized on a cash basis during the three and six months ended June 30, 2019 totaled $24 thousand related to the pay-off of a non-accrual home equity loan. No interest income on impaired loans was recognized on a cash basis during the three months ended June 30, 2018. Interest income recognized on a cash basis totaled $128 thousand during the six months ended June 30, 2018 related to the pay-off of two non-accrual commercial PCI loans. (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total December 31, 2018 Recorded investment in impaired loans: With no specific allowance recorded $ 303 $ — $ — $ 2,688 $ 313 $ 462 $ 111 $ 3,877 With a specific allowance recorded 1,522 6,993 1,821 — 251 — 574 11,161 Total recorded investment in impaired loans $ 1,825 $ 6,993 $ 1,821 $ 2,688 $ 564 $ 462 $ 685 $ 15,038 Unpaid principal balance of impaired loans $ 1,813 $ 6,993 $ 1,812 $ 2,688 $ 562 $ 461 $ 684 $ 15,013 Specific allowance $ 466 $ 189 $ 45 $ — $ 5 $ — $ 73 $ 778 Management monitors delinquent loans continuously and identifies problem loans, generally loans graded Substandard or worse, loans on non-accrual status and loans modified in a TDR, to be evaluated individually for impairment testing. Generally, the recorded investment in impaired loans is net of any charge-offs from estimated losses related to specifically-identified impaired loans when they are deemed uncollectible. There were no charged-off amounts on impaired loans at June 30, 2019 or December 31, 2018 . In addition, the recorded investment in impaired loans is net of purchase discounts or premiums on acquired loans and deferred fees and costs. At June 30, 2019 and December 31, 2018 , unused commitments to extend credit on impaired loans, including performing loans to borrowers whose terms have been modified in TDRs, totaled $599 thousand and $1.1 million , respectively. The following tables disclose activity in the allowance for loan losses ("ALLL") and the recorded investment in loans by class, as well as the related ALLL disaggregated by impairment evaluation method. Allowance for Loan Losses Rollforward for the Period (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Unallocated Total Three months ended June 30, 2019 Beginning balance $ 2,612 $ 2,358 $ 7,766 $ 704 $ 923 $ 800 $ 340 $ 314 $ 15,817 Provision (reversal) (250 ) (37 ) (57 ) (85 ) (16 ) 49 (17 ) 413 — Charge-offs — — — — — — — — — Recoveries 6 — 12 — — — — — 18 Ending balance $ 2,368 $ 2,321 $ 7,721 $ 619 $ 907 $ 849 $ 323 $ 727 $ 15,835 Three months ended June 30, 2018 Beginning balance $ 3,693 $ 2,080 $ 6,455 $ 697 $ 979 $ 543 $ 351 $ 973 $ 15,771 Provision (reversal) (1,098 ) 259 935 (189 ) (27 ) 203 (66 ) (17 ) — Charge-offs (3 ) — — — — — (2 ) — (5 ) Recoveries 5 — — — — — 42 — 47 Ending balance $ 2,597 $ 2,339 $ 7,390 $ 508 $ 952 $ 746 $ 325 $ 956 $ 15,813 Allowance for Loan Losses Rollforward for the Period (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Unallocated Total Six months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 2,436 $ 2,407 $ 7,703 $ 756 $ 915 $ 800 $ 310 $ 494 $ 15,821 Provision (reversal) (70 ) (86 ) 6 (137 ) (8 ) 49 13 233 — Charge-offs (9 ) — — — — — — — (9 ) Recoveries 11 — 12 — — — — — 23 Ending balance $ 2,368 $ 2,321 $ 7,721 $ 619 $ 907 $ 849 $ 323 $ 727 $ 15,835 Six months ended June 30, 2018 Allowance for loan losses: Beginning balance $ 3,654 $ 2,294 $ 6,475 $ 681 $ 1,031 $ 536 $ 378 $ 718 $ 15,767 Provision (reversal) (1,063 ) 45 915 (173 ) (79 ) 210 (93 ) 238 — Charge-offs (3 ) — — — — — (2 ) — (5 ) Recoveries 9 — — — — — 42 — 51 Ending balance $ 2,597 $ 2,339 $ 7,390 $ 508 $ 952 $ 746 $ 325 $ 956 $ 15,813 Allowance for Loan Losses and Recorded Investment in Loans (dollars in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Unallocated Total June 30, 2019 Ending ALLL related to loans collectively evaluated for impairment $ 2,026 $ 2,198 $ 7,679 $ 619 $ 902 $ 849 $ 259 $ 727 $ 15,259 Ending ALLL related to loans individually evaluated for impairment 342 123 42 — 5 — 64 — 576 Ending ALLL related to PCI loans — — — — — — — — — Ending balance $ 2,368 $ 2,321 $ 7,721 $ 619 $ 907 $ 849 $ 323 $ 727 $ 15,835 Recorded Investment: Collectively evaluated for impairment $ 233,326 $ 298,162 $ 876,351 $ 63,075 $ 125,483 $ 123,663 $ 30,435 $ — $ 1,750,495 Individually evaluated for impairment 1,489 7,000 1,796 488 408 457 665 — 12,303 PCI loans 17 1,165 822 — 77 — — — 2,081 Total $ 234,832 $ 306,327 $ 878,969 $ 63,563 $ 125,968 $ 124,120 $ 31,100 $ — $ 1,764,879 Ratio of allowance for loan losses to total loans 1.01 % 0.76 % 0.88 % 0.97 % 0.72 % 0.68 % 1.04 % NM 0.90 % Allowance for loan losses to non-accrual loans 669 % NM NM NM 578 % NM 513 % NM 2,759 % NM - Not Meaningful Allowance for Loan Losses and Recorded Investment in Loans (dollars in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Unallocated Total December 31, 2018 Ending ALLL related to loans collectively evaluated for impairment $ 1,970 $ 2,218 $ 7,658 $ 756 $ 910 $ 800 $ 237 $ 494 $ 15,043 Ending ALLL related to loans individually evaluated for impairment 466 189 45 — 5 — 73 — 778 Ending ALLL related to purchased credit-impaired loans — — — — — — — — — Ending balance $ 2,436 $ 2,407 $ 7,703 $ 756 $ 915 $ 800 $ 310 $ 494 $ 15,821 Recorded Investment: Collectively evaluated for impairment $ 228,883 $ 305,097 $ 870,778 $ 73,735 $ 124,049 $ 117,385 $ 26,787 $ — $ 1,746,714 Individually evaluated for impairment 1,825 6,993 1,821 2,688 564 462 685 — 15,038 Purchased credit-impaired 31 1,187 811 — 83 — — — 2,112 Total $ 230,739 $ 313,277 $ 873,410 $ 76,423 $ 124,696 $ 117,847 $ 27,472 $ — $ 1,763,864 Ratio of allowance for loan losses to total loans 1.06 % 0.77 % 0.88 % 0.99 % 0.73 % 0.68 % 1.13 % NM 0.90 % Allowance for loan losses to non-accrual loans 764 % NM NM NM 292 % NM NM NM 2,270 % NM - Not Meaningful Purchased Credit-Impaired Loans Acquired loans are considered credit-impaired if there is evidence of significant deterioration of credit quality since origination and it is probable, at the acquisition date, that we will be unable to collect all contractually required payments receivable. Management has determined certain loans purchased in our three bank acquisitions to be PCI loans based on credit indicators such as non-accrual status, past due status, loan risk grade, loan-to-value ratio, etc. Revolving credit agreements (e.g., home equity lines of credit and revolving commercial loans) are not considered PCI loans as cash flows cannot be reasonably estimated. The following table reflects the unpaid principal balance and related carrying value of PCI loans. PCI Loans June 30, 2019 December 31, 2018 (in thousands) Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value Commercial and industrial $ 64 $ 17 $ 89 $ 31 Commercial real estate, owner occupied 1,221 1,165 1,247 1,187 Commercial real estate, investor 1,017 822 1,033 811 Home equity 200 77 210 83 Total purchased credit-impaired loans $ 2,502 $ 2,081 $ 2,579 $ 2,112 The activities in the accretable yield, or income expected to be earned over the remaining lives of the PCI loans were as follows: Accretable Yield Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Balance at beginning of period $ 875 $ 1,142 $ 934 $ 1,254 Accretion (56 ) (83 ) (115 ) (195 ) Balance at end of period $ 819 $ 1,059 $ 819 $ 1,059 Pledged Loans Our FHLB line of credit is secured under terms of a blanket collateral agreement by a pledge of certain qualifying loans with unpaid principal balances of $1,083.5 million and $1,027.4 million at June 30, 2019 and December 31, 2018 , respectively. In addition, we pledge eligible TIC loans, which totaled $102.9 million and $94.5 million at June 30, 2019 and December 31, 2018 , respectively, to secure our borrowing capacity with the Federal Reserve Bank ("FRB"). Also, see Note 6, Borrowings. Related Party Loans The Bank has, and expects to have in the future, banking transactions in the ordinary course of its business with directors, officers, principal shareholders and their businesses or associates. These transactions, including loans, are granted on substantially the same terms, including interest rates and collateral on loans, as those prevailing at the same time for comparable transactions with persons not related to us. Likewise, these transactions do not involve more than the normal risk of collectability or present other unfavorable features. Related party loans totaled $9.7 million at June 30, 2019 , compared to $10.6 million at December 31, 2018 . In addition, undisbursed commitments to related parties totaled $9.1 million at June 30, 2019 and December 31, 2018 . |
Borrowings and Other Obligation
Borrowings and Other Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Obligations | Borrowings and Other Obligations Federal Funds Purchased – The Bank had unsecured lines of credit with correspondent banks for overnight borrowings totaling $92.0 million at June 30, 2019 and December 31, 2018 . In general, interest rates on these lines approximate the federal funds target rate. We had no overnight borrowings under these credit facilities at June 30, 2019 or December 31, 2018 . Federal Home Loan Bank Borrowings – As of June 30, 2019 and December 31, 2018 , the Bank had lines of credit with the FHLB totaling $633.5 million and $629.4 million , respectively, based on eligible collateral of certain loans. There were no FHLB overnight borrowings at June 30, 2019 . There were $7.0 million FHLB overnight borrowings at an overnight rate of 2.56% on December 31, 2018 . Federal Reserve Line of Credit – The Bank has a line of credit with the FRBSF secured by certain residential loans. At June 30, 2019 and December 31, 2018 , the Bank had borrowing capacity under this line totaling $75.8 million and $69.7 million , respectively, and had no outstanding borrowings with the FRBSF. Subordinated Debentures – As part of an acquisition, Bancorp assumed subordinated debentures due to NorCal Community Bancorp Trusts I and II, established for the sole purpose of issuing trust preferred securities. The trust preferred securities were sold and issued in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. On October 7, 2018, Bancorp redeemed in full the subordinated debentures due to NorCal Community Bancorp Trust I, resulting in $916 thousand accelerated accretion. The Trust II subordinated debentures were recorded at fair value totaling $2.14 million at acquisition date with a contractual balance of $4.12 million . The difference between the contractual balance and the fair value at acquisition date is accreted into interest expense over the life of the debentures. Accretion on the subordinated debentures totaled $34 thousand (Trust II) and $63 thousand (Trusts I and II) for the six months ended June 30, 2019 and 2018 , respectively. Bancorp has the option to defer payment of the interest on the subordinated debentures for a period of up to five years , as long as there is no event of default. In the event of interest deferral, dividends to Bancorp common stockholders are prohibited. Bancorp has guaranteed, on a subordinated basis, distributions and other payments due on trust preferred securities totaling $4.0 million issued by Trust II, which have identical maturity, repricing and payment terms as the subordinated debentures. Subordinated debentures due to NorCal Community Bancorp Trust II on March 15, 2036 with interest payable quarterly, (repricing quarterly, based on 3-month LIBOR plus 1.40% , or 3.81% as of June 30, 2019), are redeemable in whole or in part on any interest payment date. Other Obligations – The Bank leases certain equipment under finances leases, which are included in borrowings and other obligations in the consolidated statement of conditions. See Note 8, Commitment and Contingencies, for additional information. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends and Stock Split On July 19, 2019, the Bancorp declared a $0.21 per share cash dividend, payable on August 9, 2019 to shareholders of record at the close of business on August 2, 2019. All share and per share data have been adjusted to reflect the two -for-one stock split effective November 27, 2018. Share-Based Payments The fair value of stock options as of the grant date is recorded as stock-based compensation expense in the consolidated statements of comprehensive income over the requisite service period, which is generally the vesting period, with a corresponding increase in common stock. Stock-based compensation also includes compensation expense related to the issuance of restricted stock awards. The grant-date fair value of the restricted stock awards, which equals the intrinsic value, is recorded as compensation expense over the requisite service period with a corresponding increase in common stock as the shares vest. Beginning in 2018, stock option and restricted stock awards issued include a retirement eligibility clause whereby the requisite service period is satisfied at the retirement eligibility date. For those awards, we accelerate stock-based compensation expense when the award holder is eligible to retire. However, retirement eligibility does not affect the vesting of restricted stock or the exercisability of stock options, which are based on the scheduled vesting period. Performance-based stock awards (restricted stock) are issued to a selected group of employees. Stock award vesting is contingent upon the achievement of pre-established long-term performance goals set by the Compensation Committee of the Board of Directors. Performance is measured over a three -year period and cliff vested. These performance-based stock awards were granted at a maximum opportunity level, and based on the achievement of the pre-established goals, the actual payouts can range from 0% to 200% of the target award. For performance-based stock awards, an estimate is made of the number of shares expected to vest based on the probability that the performance criteria will be achieved to determine the amount of compensation expense to be recognized. The estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in the current period. We record excess tax benefits (deficiencies) resulting from the exercise of non-qualified stock options, the disqualifying disposition of incentive stock options and vesting of restricted stock awards as income tax benefits (expense) in the consolidated statements of comprehensive income with a corresponding decrease (increase) to current taxes payable. The holders of unvested restricted stock awards are entitled to dividends on the same per-share ratio as holders of common stock. Tax benefits for dividends paid on unvested restricted stock awards are recorded as tax benefits in the consolidated statements of comprehensive income with a corresponding decrease to current taxes payable. Dividends on forfeited awards are included in stock-based compensation expense. Stock options and restricted stock may be net settled in a cashless exercise by a reduction in the number of shares otherwise deliverable upon exercise or vesting in satisfaction of the exercise payment and/or applicable tax withholding requirements. During the six months ended June 30, 2019 , we withheld 6,937 shares totaling $290 thousand at a weighted-average price of $41.78 for cashless exercises. During the six months ended June 30, 2018 , we withheld 39,726 shares totaling $1.4 million at a weighted-average price of $35.17 for cashless exercises. Shares withheld under net settlement arrangements are available for future grants. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income We adopted ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, in the first quarter of 2018 and reclassified $638 thousand from AOCI to retained earnings. This amount represented the stranded income tax effects related to the unrealized loss on available-for-sale securities in AOCI on the date of the enactment of the Tax Cuts and Jobs Act of 2017. Share Repurchase Program On April 23, 2018, Bancorp announced that its Board of Directors approved a Share Repurchase Program under which Bancorp may repurchase up to $25.0 million of its outstanding common stock through May 1, 2019. Bancorp's Board of Directors subsequently extended the Share Repurchase Program through February 28, 2020. Under the Share Repurchase Program, Bancorp may purchase shares of its common stock through various means such as open market transactions, including block purchases, and privately negotiated transactions. The number of shares repurchased and the timing, manner, price and amount of any repurchases will be determined at Bancorp's discretion. Factors include, but are not limited to, stock price, trading volume and general market conditions, along with Bancorp’s general business conditions. The program may be suspended or discontinued at any time and does not obligate Bancorp to acquire any specific number of shares of its common stock. As part of the Share Repurchase Program, Bancorp entered into a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The 10b5-1 trading plan permits common stock to be repurchased at times that might otherwise be prohibited under insider trading laws or self-imposed trading restrictions. The 10b5-1 trading plan is administered by an independent broker and is subject to price, market volume and timing restrictions. During the six months ended June 30, 2019 , Bancorp repurchased 248,524 shares totaling $10.4 million for a cumulative 419,741 shares totaling $17.5 million repurchased from May 1, 2018 through June 30, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk We make commitments to extend credit in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit in the form of loans or through standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because various commitments will expire without being fully drawn, the total commitment amount does not necessarily represent future cash requirements. Our credit loss exposure is equal to the contractual amount of the commitment in the event of nonperformance by the borrower. We use the same credit underwriting criteria for all credit exposure. The amount of collateral obtained, if deemed necessary by us, is based on Management's credit evaluation of the borrower. Collateral types pledged may include accounts receivable, inventory, other personal property and real property. The contractual amount of undrawn loan commitments and standby letters of credit not reflected in the consolidated statements of condition are as follows: (in thousands) June 30, 2019 December 31, 2018 Commercial lines of credit $ 234,953 $ 238,361 Revolving home equity lines 187,244 189,971 Undisbursed construction loans 49,037 46,229 Personal and other lines of credit 9,779 14,109 Standby letters of credit 2,014 2,636 Total commitments and standby letters of credit $ 483,027 $ 491,306 We record an allowance for losses on these off-balance sheet commitments based on an estimate of probabilities of the utilization of these commitments according to our historical experience on different types of commitments and expected loss. The allowance for losses on off-balance sheet commitments totaled $1.1 million and $958 thousand as of June 30, 2019 and December 31, 2018 , respectively, which is recorded in interest payable and other liabilities in the consolidated statements of condition. Leases We lease premises under long-term non-cancelable operating leases with remaining terms of 1 year to 13 years , most of which include escalation clauses and one or more options to extend the lease term, and some of which contain lease termination clauses. Lease terms may include certain renewal options that were considered reasonably certain to be exercised. We lease certain equipment under finance leases with initial terms of 3 years to 5 years . The equipment finance leases do not contain renewal options, bargain purchase options or residual value guarantees. The following table shows the balances of operating and finance lease right-of-use assets and lease liabilities as of June 30, 2019 . (in thousands) June 30, 2019 Operating leases: Operating lease right-of-use assets $ 12,515 Operating lease liabilities $ 14,332 Finance leases: Finance lease right-of-use assets $ 380 Accumulated amortization (85 ) Finance lease right-of-use assets, net 1 $ 295 Finance lease liabilities 2 $ 297 1 Included in premises and equipment in the consolidated statements of condition. 2 Included in borrowings and other obligations in the consolidated statements of condition. The following table shows supplemental disclosures of noncash investing and financing activities for the period presented. There were no lease-related noncash investing and financing activities for the six months ended June 30, 2018. Six months ended (in thousands) June 30, 2019 Right-of-use assets obtained in exchange for operating lease liabilities $ 1,286 Right-of-use assets obtained in exchange for finance lease liabilities $ 31 Reclassification of deferred rent and unamortized lease incentives from other liabilities to operating lease right-of-use assets $ 1,967 The following table shows components of operating and finance lease cost. Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2019 Operating lease cost 1 $ 1,067 $ 2,071 Finance lease cost: Amortization of right-of-use assets 2 $ 43 $ 85 Interest on finance lease liabilities 3 2 5 Total finance lease cost $ 45 $ 90 Total lease cost $ 1,112 $ 2,161 1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income. 2 Included in depreciation and amortization in the consolidated statements of comprehensive income. 3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income. Operating lease rent expense totaled $1.2 million and $2.3 million , respectively, for the three and six months ended June 30, 2018 . The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of June 30, 2019 . Total minimum lease payments do not include obligations of approximately $398 thousand for an operating lease that has not commenced. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the later of the date we adopted the new lease accounting standards or lease commencement date. (in thousands) June 30, 2019 Year Operating Leases Finance Leases 2019 $ 2,277 $ 89 2020 4,424 170 2021 2,746 37 2022 1,890 8 2023 1,400 1 Thereafter 2,716 — Total minimum lease payments 15,453 305 Amounts representing interest (present value discount) (1,121 ) (8 ) Present value of net minimum lease payments $ 14,332 $ 297 Weighted average remaining term (in years) 5.1 1.8 Weighted average discount rate 2.81 % 2.88 % Litigation Matters Bancorp may be party to legal actions that arise from time to time in the normal course of business. Bancorp's Management is not aware of any pending legal proceedings to which either it or the Bank may be a party or has recently been a party that will have a material adverse effect on the financial condition or results of operations of Bancorp or the Bank. The Bank is responsible for a proportionate share of certain litigation indemnifications provided to Visa U.S.A. ("Visa") by its member banks in connection with Visa's lawsuits related to anti-trust charges and interchange fees ("Covered Litigation"). Our proportionate share of the litigation indemnification liability does not change or transfer upon the sale of our Class B Visa shares to member banks. Visa established an escrow account to pay for settlements or judgments in the Covered Litigation. Under the terms of the U.S. retrospective responsibility plan, when Visa funds the litigation escrow account, it triggers a conversion rate reduction of the Class B common stock to shares of Class A common stock, effectively reducing the aggregate value of the Class B common stock held by Visa's member banks like us. In 2012, Visa had reached a $4.0 billion interchange multidistrict litigation class settlement agreement with plaintiffs representing a class of U.S. retailers. On September 17, 2018, Visa signed an amended settlement agreement with the putative class action plaintiffs of the U.S. interchange multidistrict litigation that superseded the 2012 settlement agreement. Visa's share of the settlement amount under the amended class settlement agreement increased to $4.1 billion . On January 24, 2019, the district court granted preliminary approval of the amended class settlement agreement, which was moved for final approval on June 7, 2019. Certain merchants chose to opt out of the class settlement agreement and a final settlement approval hearing is scheduled for November 7, 2019. The escrow balance as of June 30, 2019 of $902 million , combined with funds previously deposited with the court, are expected to cover the settlement payment obligations. The outcome of the Covered Litigation affects the conversion rate of Visa Class B common stock held by us to Visa Class A common stock, as discussed above and in Note 4, Investment Securities. The final conversion rate might change depending on the final settlement payments, and the full effect on member banks is still uncertain. Litigation is ongoing and until the court approval process is complete, there is no assurance that Visa will resolve the claims as contemplated by the amended class settlement agreement, and additional lawsuits may arise from individual merchants who opted out of the class settlement. However, until the escrow account is fully depleted and the conversion rate of Class B to Class A common stock is reduced to zero, no future cash settlement payments are required by the member banks, such as us, on the Covered Litigation. Therefore, we are not required to record any contingent liabilities for the indemnification related to the Covered Litigation, as we consider the probability of losses to be remote. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities We entered into interest rate swap agreements, primarily as an interest rate risk management strategy, in order to mitigate the changes in the fair value of specified long-term fixed-rate loans (or firm commitments to enter into long-term fixed-rate loans) caused by changes in interest rates. These hedges allow us to offer long-term fixed-rate loans to customers without assuming the interest rate risk of a long-term asset. Converting our fixed-rate interest payments to floating-rate interest payments, generally benchmarked to the one-month U.S. dollar LIBOR index, protects us against changes in the fair value of our loans associated with fluctuating interest rates. Our credit exposure, if any, on interest rate swap asset positions is limited to the fair value (net of any collateral pledged to us) and interest payments of all swaps by each counterparty. Conversely, when an interest rate swap is in a liability position exceeding a certain threshold, we may be required to post collateral to the counterparty in an amount determined by the agreements. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values. As of June 30, 2019 , we had five interest rate swap agreements, which are scheduled to mature in June 2031, October 2031, July 2032, August 2037 and October 2037. All are accounted for as fair value hedges. The notional amounts of the interest rate contracts are equal to the notional amounts of the hedged loans. Our interest rate swap payments are settled monthly with counterparties. Accrued interest on the swaps totaled $3 thousand at both June 30, 2019 and December 31, 2018 . Information on our interest rate swaps is shown in the derivative tables below: Asset Derivatives Liability Derivatives (in thousands) June 30, December 31, 2018 June 30, December 31, 2018 Fair value hedges: Interest rate contracts notional amount $ — $ 8,895 $ 17,437 $ 9,016 Interest rate contracts fair value 1 $ — $ 161 $ 1,118 $ 375 1 See Note 3, Fair Value of Assets and Liabilities, for valuation methodology. The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of June 30, 2019 and December 31, 2018 : Carrying Amounts of Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Loans (in thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Loans $ 18,378 $ 17,917 $ 941 $ 6 The following table presents the net gains (losses) recognized in interest income on loans on the consolidated statements of comprehensive income related to our derivatives designated as fair value hedges: Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest and fees on loans 1 $ 20,988 $ 19,624 $ 41,683 $ 38,511 (Decrease) increase in value of designated interest rate swaps due to LIBOR interest rate movements $ (547 ) $ 187 $ (904 ) $ 716 Payment on interest rate swaps (14 ) (40 ) (26 ) (95 ) Increase (decrease) in value of hedged loans 573 (116 ) 935 (693 ) Decrease in value of yield maintenance agreement (3 ) (3 ) (7 ) (7 ) Net gains (losses) on fair value hedging relationships recognized in interest income $ 9 $ 28 $ (2 ) $ (79 ) 1 Represents the income line item in the statement of comprehensive income in which the effects of fair value hedges are recorded. Our derivative transactions with counterparties are under International Swaps and Derivative Association (“ISDA”) master agreements that include “right of set-off” provisions. “Right of set-off” provisions are legally enforceable rights to offset recognized amounts and there may be an intention to settle such amounts on a net basis. We do not offset such financial instruments for financial reporting purposes. Information on financial instruments that are eligible for offset in the consolidated statements of condition follows: Offsetting of Financial Assets and Derivative Assets Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Assets Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral ( in thousands) Assets 1 Condition of Condition 1 Instruments Received Net Amount June 30, 2019 Derivatives by Counterparty: Counterparty A $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — December 31, 2018 Derivatives by Counterparty: Counterparty A $ 161 $ — $ 161 $ (161 ) $ — $ — Total $ 161 $ — $ 161 $ (161 ) $ — $ — 1 Amounts exclude accrued interest totaling less than $1 thousand at both June 30, 2019 and December 31, 2018 . Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Liabilities Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral (in thousands) Liabilities 2 Condition of Condition 2 Instruments Pledged Net Amount June 30, 2019 Derivatives by Counterparty: Counterparty A $ 1,118 $ — $ 1,118 $ — $ (990 ) $ 128 Total $ 1,118 $ — $ 1,118 $ — $ (990 ) $ 128 December 31, 2018 Derivatives by Counterparty: Counterparty A $ 375 $ — $ 375 $ (161 ) $ — $ 214 Total $ 375 $ — $ 375 $ (161 ) $ — $ 214 2 Amounts exclude accrued interest totaling $3 thousand at both June 30, 2019 and December 31, 2018 . For more information on how we account for our interest rate swaps, refer to Note 1 to the Consolidated Financial Statements included in our 2018 Form 10-K filed with the SEC on March 14, 2019. |
Basis of Presentation - (Polici
Basis of Presentation - (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Bank of Marin Bancorp (“Bancorp”), a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin (the “Bank”), a California state-chartered commercial bank. References to “we,” “our,” “us” mean Bancorp and the Bank that are consolidated for financial reporting purposes. The accompanying unaudited consolidated interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. Although we believe that the disclosures are adequate and the information presented is not misleading, we suggest that these interim financial statements be read in conjunction with the annual financial statements and the notes thereto included in our 2018 Annual Report on Form 10-K. In the opinion of Management, the unaudited consolidated financial statements reflect all adjustments, which are necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income, changes in stockholders’ equity, and cash flows for the periods presented. All material intercompany transactions have been eliminated. The results of these interim periods may not be indicative of the results for the full year or for any other period. The NorCal Community Bancorp Trusts I and II, respectively (the "Trusts") were formed for the sole purpose of issuing trust preferred securities. Bancorp is not considered the primary beneficiary of the Trusts (variable interest entities), therefore the Trusts are not consolidated in our consolidated financial statements, but rather the subordinated debentures are shown as a liability on our consolidated statements of condition. Bancorp's investment in the securities of the Trusts is accounted for under the equity method and is included in interest receivable and other assets on the consolidated statements of condition. Refer to Note 6, Borrowings, for detail on the early redemption on October 7, 2018 of one subordinated debenture due to NorCal Community Bancorp Trust I. |
Earnings Per Share | Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in the quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities. |
Recently Adopted and Issued Accounting Standards | Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) (the "new lease accounting standard"). The amendments in this ASU intend to increase transparency and comparability among organizations by recognizing an operating lease or finance lease right-of-use asset for the lease term, and a lease liability, which is a lessee's obligation to make lease payments, recorded based on discounting future lease payments under the lease terms. This ASU generally applies to leasing arrangements exceeding a twelve-month term. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods beginning after December 15, 2018 and requires a modified retrospective method of adoption. In July 2018, the FASB issued two amendments to ASU 2016-02: ASU No. 2018-10, Codification Improvements to Topic 842, Leases , which provided various corrections and clarifications to ASU 2016-02; and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which permitted optional transition methods and provided lessors with a practical expedient for separating lease and non-lease components of a lease. The ASU allowed entities to apply either a modified retrospective approach at the beginning of the earliest period presented or at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings, which we adopted. As a result of the adoption of the ASU on January 1, 2019, we recorded operating and finance lease right-of-use assets totaling $13.4 million , net of deferred rent and unaccreted lease incentives, operating and finance lease liabilities totaling $15.4 million , and no cumulative-effect adjustments to retained earnings. Under the standard's transition guidance, we elected the package of practical expedients, which allowed us to carry forward existing lease classifications and did not require us to reassess initial direct costs for any existing leases. In addition, we elected the hindsight practical expedient when determining the lease term (i.e., considering whether we are reasonably certain to exercise options to extend or terminate the lease). We made accounting policy elections not to separate non-lease components from lease components and to exclude short-term leases (i.e., lease term of 12 months or less at the commencement date) from right-of-use assets and lease liabilities for all lease classifications. See Note 8, Commitments and Contingencies for further information. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This update simplifies the accounting for share-based payment transactions for acquiring goods and services from nonemployees, applying some of the same requirements as employee share-based payment transactions. The ASU will not affect the accounting for share-based payment awards to nonemployee directors, which will continue to be treated as employee share-based transactions under the current standards. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We adopted the requirements of this ASU effective January 1, 2019, which did not impact our financial condition or results of operations, as it is not our practice to issue stock-based awards to pay for goods and services from nonemployees, other than nonemployee directors. In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes . This update adds an alternative fifth permissible U.S. benchmark rate to be used for hedge accounting purposes. As we have already adopted the amendments in ASU 2017-12, which changed both the designation and measurement guidance for qualifying hedging relationships, the amendments in ASU 2018-16 are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The amendments should be adopted on a prospective basis for qualifying new or re-designated hedging relationships entered into on or after the date of adoption. Early adoption is permitted in any interim period upon issuance of this ASU if an entity already has adopted ASU 2017-12. We adopted this ASU effective January 1, 2019, which did not impact our financial condition or results of operations. Accounting Standards Not Yet Effective In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The standard will replace today's "incurred loss" model with a "current expected credit loss" ("CECL") model. The CECL model will apply to estimated credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. The CECL model is based on lifetime expected losses, rather than incurred losses, and requires the recognition of credit loss expense in the consolidated statement of income and a related allowance for credit losses on the consolidated statement of condition at the time of origination or purchase of a loan receivable or held-to-maturity debt security. Likewise, subsequent changes in this estimate are recorded through credit loss expense and related allowance. The CECL model requires the use of not only relevant historical experience and current conditions, but reasonable and supportable forecasts of future events and circumstances, incorporating a broad range of information in developing credit loss estimates, which could result in significant changes to both the timing and amount of credit loss expense and allowance. Under ASU 2016-13, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost. Estimated credit losses are recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income. The ASU also expands the disclosure requirements regarding assumptions, models, and methods for estimating the allowance for loan losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Entities will apply a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While we believe the change from an incurred loss model to a CECL model has the potential to increase the allowance for credit losses at the adoption date, the full impact to our financial condition or results of operations cannot be quantified at this time as we continue to evaluate the applicability and validity of our methodologies and assumptions. In addition, any estimate could be significantly influenced by the composition and risk characteristics of the loan portfolio as well as prevailing economic conditions and forecasts as of the adoption date. Our cross-functional team and our third-party CECL model vendor continue to make progress and we will be ready for adoption on January 1, 2020. Early implementation activities focused on, among other things, capturing and validating data, segmenting the loan portfolio, evaluating various credit loss estimation methodologies, sourcing tools to forecast future economic conditions, and running multiple loan loss driver analyses that correlate our credit loss experience with one or more economic factors. Based on these activities, we determined that our primary credit loss methodology will utilize a discounted cash flow approach that considers the probability of default and loss given default. Continuing implementation activities include refining estimated credit loss model assumptions, evaluating the qualitative factor framework and assumptions, drafting policies and disclosures, and evaluating, documenting and testing internal controls. In addition, we will continue to run parallel tests throughout 2019 to identify opportunities for enhancing our assumptions as the processes, internal controls and policies are finalized. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this ASU remove, modify, and add disclosure requirements for the fair value reporting of assets and liabilities. The modifications and additions relate to Level 3 fair value measurements at the end of the reporting period. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities should disclose and describe the range and weighted-average of significant observable inputs used to develop Level 3 fair value measurements prospectively. Early adoption is permitted. Entities making this election are permitted to early adopt the eliminated or modified disclosure requirements and delay the adoption of all the new disclosure requirements until the ASU's effective date. As the ASU’s requirements only relate to disclosures, the amendments will not impact our financial condition or results of operations. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This standard aligns the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, regardless of whether they convey a license to the hosted software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by this ASU. The amendments are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. An entity has the option to apply amendments in the ASU either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted, including adoption in an interim period. We do not expect that the ASU will have a material impact on our financial condition or results of operations. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements . This ASU addresses two lessor implementation issues and clarifies that lessees and lessors are exempt from certain interim disclosure requirements associated with adopting ASU 2016-02. The amendments related to the lessor implementation issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early application is permitted. As the ASU's amendments applicable to us only relate to disclosures, the adoption of ASU 2019-01 will not impact our financial condition or results of operations. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments that clarifies and improves areas of guidance related to recently issued standards on credit losses, hedging and recognition and measurement. The provisions of this ASU are effective January 1, 2020 and contain various methods of adoption. We do not expect that the ASU will have a material impact on our financial condition or results of operations. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief . This ASU allows an option for entities to irrevocably elect the fair value option on an instrument-by-instrument basis for eligible financial assets measured at amortized cost basis upon adoption of the credit loss standards. This amendment provides relief for those entities electing the fair value option on newly originated or purchased financial assets, while maintaining existing similar financial assets at amortized cost, avoiding the requirement to maintain dual measurement methods for similar assets. The fair value option does not apply to held-to-maturity debt securities. The effective date for this ASU is the same as for ASU 2016-13, as discussed above. We will evaluate this ASU in conjunction with ASU 2016-13 to determine its impact on our financial condition and results of operations. |
Fair Value Hierarchy and Fair Value Measurement | The value of unrecognized financial instruments is estimated based on the fee income associated with the commitments which, in the absence of credit exposure, is considered to approximate their settlement value. On a recurring basis, derivative financial instruments are recorded at fair value, which is based on the income approach using observable Level 2 market inputs, reflecting market expectations of future interest rates as of the measurement date. Standard valuation techniques are used to calculate the present value of the future expected cash flows assuming an orderly transaction. Valuation adjustments may be made to reflect both our own credit risk and the counterparties’ credit risk in determining the fair value of the derivatives. Level 2 inputs for the valuations are limited to observable market prices for London Interbank Offered Rate ("LIBOR") and Overnight Index Swap ("OIS") rates (for the very short term), quoted prices for LIBOR futures contracts, observable market prices for LIBOR and OIS swap rates, and one-month and three-month LIBOR basis spreads at commonly quoted intervals. Mid-market pricing of the inputs is used as a practical expedient in the fair value measurements. We project spot rates at reset days specified by each swap contract to determine future cash flows, then discount to present value using either LIBOR or OIS curves depending on whether the swap positions are fully collateralized as of the measurement date. When the value of any collateral placed with counterparties is less than the interest rate derivative liability, a credit valuation adjustment ("CVA") is applied to reflect the credit risk we pose to counterparties. We have used the spread between the Standard & Poor's BBB rated U.S. Bank Composite rate and LIBOR for the closest maturity term corresponding to the duration of the swaps to derive the CVA. A similar credit risk adjustment, correlated to the credit standing of the counterparty, is made when collateral posted by the counterparty does not fully cover their liability to us. For further discussion on our methodology in valuing our derivative financial instruments, refer to Note 9, Derivative Financial Instruments and Hedging Activities. We group our assets and liabilities that are measured at fair value in three levels within the fair value hierarchy, 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: Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data. Level 3: Valuations are based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Values are determined using pricing models and discounted cash flow models and may include significant Management judgment and estimation. Transfers between levels of the fair value hierarchy are recognized through our monthly and/or quarterly valuation process in the reporting period during which the event or circumstances that caused the transfer occurred. No such transfers occurred during the first three and six months of 2019 or 2018. |
Finance, Loan and Lease Receivables, Held-for-investment, Allowance and Nonperforming Loans | We generally make commercial loans to established small and mid-sized businesses to provide financing for their growth and working capital needs, equipment purchases and acquisitions. Management examines historical, current, and projected cash flows to determine the ability of the borrower to repay obligations as agreed. Commercial loans are made based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral and guarantor support. The cash flows of borrowers, however, may not occur as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed, such as accounts receivable and inventory, and typically include personal guarantees. We target stable businesses with guarantors who provide additional sources of repayment and have proven to be resilient in periods of economic stress. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans discussed above. We underwrite these loans to be repaid from cash flow and to be supported by real property collateral. Underwriting standards for commercial real estate loans include, but are not limited to, debt coverage and loan-to-value ratios. Furthermore, a large majority of our loans are guaranteed by the owners of the properties. Conditions in the real estate markets or in the general economy may adversely affect our commercial real estate loans. In the event of a vacancy, we expect guarantors to carry the loans until they find a replacement tenant. The owner's substantial equity investment provides a strong economic incentive to continue to support the commercial real estate projects. As such, we have generally experienced a relatively low level of loss and delinquencies in this portfolio. Construction loans are generally made to developers and builders to finance construction, renovation and occasionally land acquisitions in anticipation of near-term development. Construction loan borrowers provide for interest reserves that are used for the payment of interest during the development and marketing periods. When a construction loan is placed on nonaccrual status before the depletion of the interest reserve, we apply the interest funded by the interest reserve against the loan's principal balance. These loans are underwritten after evaluation of the borrower's financial strength, reputation, prior track record, and independent appraisals. We monitor all construction projects to determine whether they are on schedule, completed as planned and in accordance with the approved construction budgets. Significant events can affect the construction industry, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes. Estimates of construction costs and value associated with the completed project may be inaccurate. Repayment of construction loans is largely dependent on the ultimate success of the project. Consumer loans primarily consist of home equity lines of credit, other residential loans and floating homes, along with a small number of installment loans. Our other residential loans include tenancy-in-common fractional interest loans ("TIC") located almost entirely in San Francisco County. We originate consumer loans utilizing credit score information, debt-to-income ratio and loan-to-value ratio analysis. Diversification among consumer loan types, coupled with relatively small loan amounts that are spread across many individual borrowers, mitigates risk. We do not originate sub-prime residential mortgage loans, nor is it our practice to underwrite loans commonly referred to as "Alt-A mortgages," the characteristics of which are reduced documentation, borrowers with low FICO scores or collateral with high loan-to-value ratios. We use a risk rating system to evaluate asset quality, and to identify and monitor credit risk in individual loans, and in the loan portfolio. Our definitions of “Special Mention” risk graded loans, or worse, are consistent with those used by the Federal Deposit Insurance Corporation ("FDIC"). Our internally assigned grades are as follows: Pass and Watch : Loans to borrowers of acceptable or better credit quality. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history, and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Bank’s policy regarding debt-service-coverage ratios. These borrowers are capable of sustaining normal economic, market or operational setbacks without significant financial consequences. Negative external industry factors are generally not present. The loan may be secured, unsecured or supported by non-real estate collateral for which the value is more difficult to determine and/or marketability is more uncertain. This category also includes “Watch” loans, where the primary source of repayment has been delayed. “Watch” is intended to be a transitional grade, with either an upgrade or downgrade within a reasonable period. Special Mention : Potential weaknesses that deserve close attention. If left uncorrected, those potential weaknesses may result in deterioration of the payment prospects for the asset. Special Mention assets do not present sufficient risk to warrant adverse classification. Substandard : Inadequately protected by either the current sound worth and paying capacity of the obligor or the collateral pledged, if any. A Substandard asset has a well-defined weakness or weaknesses that jeopardize(s) the liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if such weaknesses or deficiencies are not corrected. Well-defined weaknesses include adverse trends or developments of the borrower’s financial condition, managerial weaknesses and/or significant collateral deficiencies. Doubtful : Critical weaknesses that make collection or liquidation in full improbable. There may be specific pending events that work to strengthen the asset; however, the amount or timing of the loss may not be determinable. Pending events generally occur within one year of the asset being classified as Doubtful. Examples include: merger, acquisition, or liquidation; capital injection; guarantee; perfecting liens on additional collateral; and refinancing. Such loans are placed on non-accrual status and usually are collateral-dependent. We regularly review our credits for accuracy of risk grades whenever we receive new information. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk and complexity. In addition, investor commercial real estate borrowers are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We review home equity and other consumer loans based on delinquency. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly. |
Troubled Debt Restructuring | Our loan portfolio includes certain loans modified in a troubled debt restructuring (“TDR”), where we have granted economic concessions to borrowers experiencing financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. TDRs on non-accrual status at the time of restructure may be returned to accruing status after Management considers the borrower’s sustained repayment performance for a reasonable period, generally six months, and obtains reasonable assurance of repayment and performance. We may remove a loan from TDR designation if it meets all of the following conditions: • The loan is subsequently refinanced or restructured at current market interest rates and the new terms are consistent with the treatment of creditworthy borrowers under regular underwriting standards; • The borrower is no longer considered to be in financial difficulty; • Performance on the loan is reasonably assured; and • Existing loan did not have any forgiveness of principal or interest. |
Basis of Presentation - (Tables
Basis of Presentation - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share Reconciliation and Proforma EPS | The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in the quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities. Three months ended Six months ended (in thousands, except per share data) 1 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Weighted average basic shares outstanding 13,655 13,888 13,696 13,858 Potentially dilutive common shares related to: Stock options 142 149 149 149 Unvested restricted stock awards 21 29 26 32 Weighted average diluted shares outstanding 13,818 14,066 13,871 14,039 Net income $ 8,235 $ 7,891 $ 15,714 $ 14,280 Basic EPS $ 0.60 $ 0.57 $ 1.15 $ 1.03 Diluted EPS $ 0.60 $ 0.56 $ 1.13 $ 1.02 Weighted average anti-dilutive shares not included in the calculation of diluted EPS 44 60 30 69 1 Share and per share data have been adjusted to reflect the two -for-one stock split effective November 27, 2018. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis. (in thousands) Description of Financial Instruments Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measurement Categories: Changes in Fair Value Recorded In 1 June 30, 2019 Securities available-for-sale: Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies $ 258,115 $ — $ 258,115 $ — OCI SBA-backed securities 39,805 — 39,805 — OCI Debentures of government sponsored agencies 28,784 — 28,784 — OCI Privately-issued collateralized mortgage obligations 159 — 159 — OCI Obligations of state and political subdivisions 49,259 — 49,259 — OCI Corporate bonds 2,009 — 2,009 — OCI Derivative financial assets (interest rate contracts) — — — — NI Derivative financial liabilities (interest rate contracts) 1,118 — 1,118 — NI December 31, 2018 Securities available-for-sale: Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies $ 278,403 $ — $ 278,403 $ — OCI SBA-backed securities 50,781 — 50,781 — OCI Debentures of government sponsored agencies 53,018 — 53,018 — OCI Privately-issued collateralized mortgage obligations 297 — 297 — OCI Obligations of state and political subdivisions 77,960 — 77,960 — OCI Corporate bonds 2,005 — 2,005 — OCI Derivative financial assets (interest rate contracts) 161 — 161 — NI Derivative financial liabilities (interest rate contracts) 375 — 375 — NI 1 Other comprehensive income ("OCI") or net income ("NI"). |
Schedule of Fair Value by Balance Sheet Grouping | The table below is a summary of fair value estimates for financial instruments as of June 30, 2019 and December 31, 2018 , excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI") and non-maturity deposit liabilities. Additionally, we hold shares of FHLB stock and Visa Inc. Class B common stock, both recorded at cost, as there was no impairment or changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of June 30, 2019 and December 31, 2018 . The values are discussed in Note 4, Investment Securities. June 30, 2019 December 31, 2018 (in thousands) Carrying Amounts Fair Value Fair Value Hierarchy Carrying Amounts Fair Value Fair Value Hierarchy Financial assets (recorded at amortized cost) Cash and cash equivalents $ 58,757 $ 58,757 Level 1 $ 34,221 $ 34,221 Level 1 Investment securities held-to-maturity 148,879 151,118 Level 2 157,206 153,894 Level 2 Loans, net 1,749,044 1,760,974 Level 3 1,748,043 1,700,971 Level 3 Interest receivable 8,071 8,071 Level 2 8,292 8,292 Level 2 Financial liabilities (recorded at amortized cost) Time deposits 104,306 103,359 Level 2 117,182 116,584 Level 2 Federal Home Loan Bank overnight borrowings — — Level 2 7,000 7,000 Level 2 Subordinated debentures 2,674 3,289 Level 3 2,640 3,268 Level 3 Interest payable 115 115 Level 2 104 104 Level 2 |
Investment Securities - (Tables
Investment Securities - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Held-to-Maturity Investments | Our investment securities portfolio consists of obligations of state and political subdivisions, U.S. corporations, U.S. federal government agencies such as Government National Mortgage Association ("GNMA") and Small Business Administration ("SBA"), U.S. government-sponsored enterprise securities ("GSEs"), such as Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), Federal Farm Credit Banks Funding Corporation and FHLB. We also invest in residential and commercial mortgage-backed securities (“MBS”/"CMBS") and collateralized mortgage obligations (“CMOs”) issued or guaranteed by the GSEs, and privately issued CMOs, as reflected in the following table: June 30, 2019 December 31, 2018 Amortized Fair Gross Unrealized Amortized Fair Gross Unrealized (in thousands) Cost Value Gains (Losses) Cost Value Gains (Losses) Held-to-maturity: Securities of U.S. government-sponsored enterprises: MBS pass-through securities issued by FHLMC and FNMA $ 83,493 $ 84,121 $ 967 $ (339 ) $ 88,606 $ 85,804 $ 7 $ (2,809 ) SBA-backed securities 8,401 8,779 378 — 8,720 8,757 37 — CMOs issued by FNMA 10,972 11,250 278 — 11,447 11,327 — (120 ) CMOs issued by FHLMC 33,095 33,880 805 (20 ) 33,583 33,021 8 (570 ) CMOs issued by GNMA 3,750 3,810 60 — 3,739 3,769 30 — Obligations of state and political subdivisions 9,168 9,278 110 — 11,111 11,216 128 (23 ) Total held-to-maturity 148,879 151,118 2,598 (359 ) 157,206 153,894 210 (3,522 ) Available-for-sale: Securities of U.S. government-sponsored enterprises: MBS pass-through securities issued by FHLMC and FNMA 70,550 72,144 1,644 (50 ) 95,339 94,467 358 (1,230 ) SBA-backed securities 38,363 39,805 1,498 (56 ) 50,722 50,781 465 (406 ) CMOs issued by FNMA 25,832 26,175 352 (9 ) 28,275 28,079 134 (330 ) CMOs issued by FHLMC 142,175 146,528 4,410 (57 ) 145,979 144,836 454 (1,597 ) CMOs issued by GNMA 13,275 13,268 33 (40 ) 11,294 11,021 1 (274 ) Debentures of government- sponsored agencies 28,035 28,784 749 — 52,956 53,018 185 (123 ) Privately issued CMOs 159 159 1 (1 ) 295 297 2 — Obligations of state and political subdivisions 48,323 49,259 1,012 (76 ) 79,046 77,960 134 (1,220 ) Corporate bonds 2,000 2,009 10 (1 ) 2,004 2,005 15 (14 ) Total available-for-sale 368,712 378,131 9,709 (290 ) 465,910 462,464 1,748 (5,194 ) Total investment securities $ 517,591 $ 529,249 $ 12,307 $ (649 ) $ 623,116 $ 616,358 $ 1,958 $ (8,716 ) |
Summary of Available-for-Sale Investments | Our investment securities portfolio consists of obligations of state and political subdivisions, U.S. corporations, U.S. federal government agencies such as Government National Mortgage Association ("GNMA") and Small Business Administration ("SBA"), U.S. government-sponsored enterprise securities ("GSEs"), such as Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), Federal Farm Credit Banks Funding Corporation and FHLB. We also invest in residential and commercial mortgage-backed securities (“MBS”/"CMBS") and collateralized mortgage obligations (“CMOs”) issued or guaranteed by the GSEs, and privately issued CMOs, as reflected in the following table: June 30, 2019 December 31, 2018 Amortized Fair Gross Unrealized Amortized Fair Gross Unrealized (in thousands) Cost Value Gains (Losses) Cost Value Gains (Losses) Held-to-maturity: Securities of U.S. government-sponsored enterprises: MBS pass-through securities issued by FHLMC and FNMA $ 83,493 $ 84,121 $ 967 $ (339 ) $ 88,606 $ 85,804 $ 7 $ (2,809 ) SBA-backed securities 8,401 8,779 378 — 8,720 8,757 37 — CMOs issued by FNMA 10,972 11,250 278 — 11,447 11,327 — (120 ) CMOs issued by FHLMC 33,095 33,880 805 (20 ) 33,583 33,021 8 (570 ) CMOs issued by GNMA 3,750 3,810 60 — 3,739 3,769 30 — Obligations of state and political subdivisions 9,168 9,278 110 — 11,111 11,216 128 (23 ) Total held-to-maturity 148,879 151,118 2,598 (359 ) 157,206 153,894 210 (3,522 ) Available-for-sale: Securities of U.S. government-sponsored enterprises: MBS pass-through securities issued by FHLMC and FNMA 70,550 72,144 1,644 (50 ) 95,339 94,467 358 (1,230 ) SBA-backed securities 38,363 39,805 1,498 (56 ) 50,722 50,781 465 (406 ) CMOs issued by FNMA 25,832 26,175 352 (9 ) 28,275 28,079 134 (330 ) CMOs issued by FHLMC 142,175 146,528 4,410 (57 ) 145,979 144,836 454 (1,597 ) CMOs issued by GNMA 13,275 13,268 33 (40 ) 11,294 11,021 1 (274 ) Debentures of government- sponsored agencies 28,035 28,784 749 — 52,956 53,018 185 (123 ) Privately issued CMOs 159 159 1 (1 ) 295 297 2 — Obligations of state and political subdivisions 48,323 49,259 1,012 (76 ) 79,046 77,960 134 (1,220 ) Corporate bonds 2,000 2,009 10 (1 ) 2,004 2,005 15 (14 ) Total available-for-sale 368,712 378,131 9,709 (290 ) 465,910 462,464 1,748 (5,194 ) Total investment securities $ 517,591 $ 529,249 $ 12,307 $ (649 ) $ 623,116 $ 616,358 $ 1,958 $ (8,716 ) |
Investments Classified by Contractual Maturity Date | The amortized cost a nd fair value of investment debt securities by contractual maturity at June 30, 2019 and December 31, 2018 are shown in the following table below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2019 December 31, 2018 Held-to-Maturity Available-for-Sale Held-to-Maturity Available-for-Sale (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 6,088 $ 6,095 $ 9,763 $ 9,753 $ 6,194 $ 6,182 $ 9,863 $ 9,795 After one but within five years 3,637 3,694 64,474 65,498 5,481 5,492 84,871 84,435 After five years through ten years 57,679 59,303 195,243 201,925 59,231 58,120 252,274 250,055 After ten years 81,475 82,026 99,232 100,955 86,300 84,100 118,902 118,179 Total $ 148,879 $ 151,118 $ 368,712 $ 378,131 $ 157,206 $ 153,894 $ 465,910 $ 462,464 |
Sale of Investment Securities and Gross Gains and Losses | Sales of investment securities and gross gains and losses are shown in the following table. Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Available-for-sale: Sales proceeds $ 61,852 $ 5,006 $ 66,081 $ 5,006 Gross realized gains 211 27 214 27 Gross realized losses (150 ) (16 ) (159 ) (16 ) |
Schedule of Financial Instruments Owned and Pledged as Collateral | Pledged investment securities are shown in the following table. (in thousands) June 30, 2019 December 31, 2018 Pledged to the State of California: Secure public deposits in compliance with the Local Agency Security Program $ 97,974 $ 125,696 Collateral for trust deposits 723 734 Total investment securities pledged to the State of California $ 98,697 $ 126,430 Collateral for Wealth Management and Trust Services checking account $ 1,990 $ 2,000 |
Schedule of Unrealized Loss on Investments | There were 56 and 229 securities in unrealized loss positions at June 30, 2019 and December 31, 2018 , respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below: June 30, 2019 < 12 continuous months ≥ 12 continuous months Total securities in a loss position (in thousands) Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Held-to-maturity: MBS pass-through securities issued by FHLMC and FNMA $ 343 $ (3 ) $ 34,714 $ (336 ) $ 35,057 $ (339 ) CMOs issued by FHLMC — — 3,205 (20 ) 3,205 (20 ) Total held-to-maturity 343 (3 ) 37,919 (356 ) 38,262 (359 ) Available-for-sale: MBS pass-through securities issued by FHLMC and FNMA — — 13,537 (50 ) 13,537 (50 ) SBA-backed securities — — 3,113 (56 ) 3,113 (56 ) CMOs issued by FNMA — — 3,877 (9 ) 3,877 (9 ) CMOs issued by FHLMC 8,153 (2 ) 17,767 (55 ) 25,920 (57 ) CMOs issued by GNMA 56 (1 ) 7,948 (39 ) 8,004 (40 ) Debentures of government- sponsored agencies — — — — — — Privately issued CMOs 81 (1 ) — — 81 (1 ) Obligations of state and political subdivisions — — 9,395 (76 ) 9,395 (76 ) Corporate bonds — — 1,008 (1 ) 1,008 (1 ) Total available-for-sale 8,290 (4 ) 56,645 (286 ) 64,935 (290 ) Total temporarily impaired securities $ 8,633 $ (7 ) $ 94,564 $ (642 ) $ 103,197 $ (649 ) December 31, 2018 < 12 continuous months ≥ 12 continuous months Total securities in a loss position (in thousands) Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Held-to-maturity: MBS pass-through securities issued by FHLMC and FNMA $ 198 $ (9 ) $ 83,990 $ (2,800 ) $ 84,188 $ (2,809 ) CMOs issued by FNMA — — 11,327 (120 ) 11,327 (120 ) CMOs issued by FHLMC 2,880 (3 ) 28,171 (567 ) 31,051 (570 ) Obligations of state and political subdivisions — — 3,565 (23 ) 3,565 (23 ) Total held-to-maturity 3,078 (12 ) 127,053 (3,510 ) 130,131 (3,522 ) Available-for-sale: MBS pass-through securities issued by FHLMC and FNMA 19,971 (128 ) 50,077 (1,102 ) 70,048 (1,230 ) SBA-backed securities 13,175 (122 ) 20,123 (284 ) 33,298 (406 ) CMOs issued by FNMA 2,345 (8 ) 16,138 (322 ) 18,483 (330 ) CMOs issued by FHLMC 24,094 (330 ) 74,243 (1,267 ) 98,337 (1,597 ) CMOs issued by GNMA 1,666 (7 ) 9,112 (267 ) 10,778 (274 ) Debentures of government- sponsored agencies 4,992 (8 ) 11,349 (115 ) 16,341 (123 ) Obligations of state and political subdivisions 15,290 (54 ) 52,804 (1,166 ) 68,094 (1,220 ) Corporate Bonds — — 1,004 (14 ) 1,004 (14 ) Total available-for-sale 81,533 (657 ) 234,850 (4,537 ) 316,383 (5,194 ) Total temporarily impaired securities $ 84,611 $ (669 ) $ 361,903 $ (8,047 ) $ 446,514 $ (8,716 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following table shows outstanding loans by class and payment aging as of June 30, 2019 and December 31, 2018 . Loan Aging Analysis by Class (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total June 30, 2019 30-59 days past due $ — $ — $ — $ — $ 272 $ — $ 144 $ 416 60-89 days past due — — — — — — 20 20 90 days or more past due — — — — 84 — — 84 Total past due — — — — 356 — 164 520 Current 234,832 306,327 878,969 63,563 125,612 124,120 30,936 1,764,359 Total loans 2 $ 234,832 $ 306,327 $ 878,969 $ 63,563 $ 125,968 $ 124,120 $ 31,100 $ 1,764,879 Non-accrual loans 1 $ 354 $ — $ — $ — $ 157 $ — $ 63 $ 574 December 31, 2018 30-59 days past due $ 5 $ — $ 1,004 $ — $ — $ — $ 112 $ 1,121 60-89 days past due — — — — — — — — 90 days or more past due — — — — — — — — Total past due 5 — 1,004 — — — 112 1,121 Current 230,734 313,277 872,406 76,423 124,696 117,847 27,360 1,762,743 Total loans 2 $ 230,739 $ 313,277 $ 873,410 $ 76,423 $ 124,696 $ 117,847 $ 27,472 $ 1,763,864 Non-accrual loans 1 $ 319 $ — $ — $ — $ 313 $ — $ 65 $ 697 1 Includes no purchased credit impaired ("PCI") loans at June 30, 2019 and December 31, 2018 . Amounts exclude accreting PCI loans with carrying values totaling $2.1 million at June 30, 2019 and December 31, 2018 , as we have a reasonable expectation about future cash flows to be collected and we continue to recognize accretable yield on these loans in interest income. There were no accruing loans past due more than ninety days at June 30, 2019 or December 31, 2018 . 2 Amounts include net deferred loan origination costs of $781 thousand and $635 thousand at June 30, 2019 and December 31, 2018 , respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $669 thousand and $708 thousand at June 30, 2019 and December 31, 2018 , respectively. |
Financing Receivable Credit Quality Indicators | The following table represents an analysis of the carrying amount in loans, net of deferred fees and costs and purchase premiums or discounts, by internally assigned risk grades, including PCI loans, at June 30, 2019 and December 31, 2018 . Credit Risk Profile by Internally Assigned Risk Grade (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Purchased credit-impaired Total June 30, 2019 Pass $ 208,201 $ 285,221 $ 875,504 $ 63,563 $ 123,440 $ 124,120 $ 30,947 $ 2,081 $ 1,713,077 Special Mention 25,926 10,861 2,643 — 2,121 — — — 41,551 Substandard 688 9,080 — — 330 — 153 — 10,251 Total loans $ 234,815 $ 305,162 $ 878,147 $ 63,563 $ 125,891 $ 124,120 $ 31,100 $ 2,081 $ 1,764,879 December 31, 2018 Pass $ 219,625 $ 299,998 $ 870,443 $ 73,735 $ 122,844 $ 117,847 $ 27,312 $ 2,112 $ 1,733,916 Special Mention 9,957 4,106 2,156 — 1,121 — — — 17,340 Substandard 1,126 7,986 — 2,688 648 — 160 — 12,608 Total loans $ 230,708 $ 312,090 $ 872,599 $ 76,423 $ 124,613 $ 117,847 $ 27,472 $ 2,112 $ 1,763,864 |
Troubled Debt Restructurings on Financing Receivables | The following table summarizes the carrying amount of TDR loans by loan class as of June 30, 2019 and December 31, 2018 . (in thousands) Recorded Investment in Troubled Debt Restructurings 1 June 30, 2019 December 31, 2018 Commercial and industrial $ 1,433 $ 1,506 Commercial real estate, owner-occupied 7,000 6,993 Commercial real estate, investor 1,796 1,821 Construction 488 2,688 Home equity 251 251 Other residential 457 462 Installment and other consumer 665 685 Total $ 12,090 $ 14,406 1 There were no acquired TDR loans as of June 30, 2019 or December 31, 2018 . TDR loans on non-accrual status totaled $361 thousand and $65 thousand at June 30, 2019 and December 31, 2018 , respectively. The following table presents information for loans modified in a TDR during the presented periods, including the number of modified contracts, the recorded investment in the loans prior to modification, and the recorded investment in the loans at period end after being restructured. The table excludes fully charged-off TDR loans and loans modified in a TDR and subsequently paid-off during the years presented. (dollars in thousands) Number of Contracts Modified Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment at Period End TDRs during the three months ended June 30, 2019: Commercial and industrial 1 $ 298 $ 298 $ 298 TDRs during the three months ended June 30, 2018: Commercial and industrial 2 $ 254 $ 245 $ 235 TDRs during the six months ended June 30, 2019: Commercial and industrial 1 $ 298 $ 298 $ 298 TDRs during the six months ended June 30, 2018: Commercial and industrial 2 $ 254 $ 245 $ 235 |
Impaired Financing Receivables | The following tables summarize information by class on impaired loans and their related allowances. Total impaired loans include non-accrual loans, accruing TDR loans and accreting PCI loans that have experienced post-acquisition declines in cash flows expected to be collected. (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total June 30, 2019 Recorded investment in impaired loans: With no specific allowance recorded $ 320 $ — $ — $ 488 $ 157 $ 457 $ 105 $ 1,527 With a specific allowance recorded 1,169 7,000 1,796 — 251 — 560 10,776 Total recorded investment in impaired loans $ 1,489 $ 7,000 $ 1,796 $ 488 $ 408 $ 457 $ 665 $ 12,303 Unpaid principal balance of impaired loans $ 1,472 $ 6,993 $ 1,789 $ 486 $ 407 $ 456 $ 664 $ 12,267 Specific allowance 342 123 42 — 5 — 64 576 Average recorded investment in impaired loans during the quarter ended June 30, 2019 1,498 7,000 1,804 1,590 503 458 670 13,523 Interest income recognized on impaired loans during the quarter ended June 30, 2019 1 19 66 20 13 29 5 6 158 Average recorded investment in impaired loans during the six months ended 1,607 6,998 1,809 1,956 523 460 675 14,028 Interest income recognized on impaired loans during the six months ended 1 41 132 39 56 33 9 13 323 Average recorded investment in impaired loans during the quarter ended June 30, 2018 2,092 7,005 1,849 2,833 736 990 708 16,213 Interest income recognized on impaired loans during the quarter ended June 30, 2018 1 28 66 20 37 5 13 8 177 Average recorded investment in impaired loans during the six months ended 2,104 7,003 1,956 2,878 742 1,043 712 16,438 Interest income recognized on impaired loans during the six months ended 1 183 132 42 75 10 26 15 483 1 Interest income recognized on a cash basis during the three and six months ended June 30, 2019 totaled $24 thousand related to the pay-off of a non-accrual home equity loan. No interest income on impaired loans was recognized on a cash basis during the three months ended June 30, 2018. Interest income recognized on a cash basis totaled $128 thousand during the six months ended June 30, 2018 related to the pay-off of two non-accrual commercial PCI loans. (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total December 31, 2018 Recorded investment in impaired loans: With no specific allowance recorded $ 303 $ — $ — $ 2,688 $ 313 $ 462 $ 111 $ 3,877 With a specific allowance recorded 1,522 6,993 1,821 — 251 — 574 11,161 Total recorded investment in impaired loans $ 1,825 $ 6,993 $ 1,821 $ 2,688 $ 564 $ 462 $ 685 $ 15,038 Unpaid principal balance of impaired loans $ 1,813 $ 6,993 $ 1,812 $ 2,688 $ 562 $ 461 $ 684 $ 15,013 Specific allowance $ 466 $ 189 $ 45 $ — $ 5 $ — $ 73 $ 778 |
Allowance for Credit Losses on Financing Receivables | The following tables disclose activity in the allowance for loan losses ("ALLL") and the recorded investment in loans by class, as well as the related ALLL disaggregated by impairment evaluation method. Allowance for Loan Losses Rollforward for the Period (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Unallocated Total Three months ended June 30, 2019 Beginning balance $ 2,612 $ 2,358 $ 7,766 $ 704 $ 923 $ 800 $ 340 $ 314 $ 15,817 Provision (reversal) (250 ) (37 ) (57 ) (85 ) (16 ) 49 (17 ) 413 — Charge-offs — — — — — — — — — Recoveries 6 — 12 — — — — — 18 Ending balance $ 2,368 $ 2,321 $ 7,721 $ 619 $ 907 $ 849 $ 323 $ 727 $ 15,835 Three months ended June 30, 2018 Beginning balance $ 3,693 $ 2,080 $ 6,455 $ 697 $ 979 $ 543 $ 351 $ 973 $ 15,771 Provision (reversal) (1,098 ) 259 935 (189 ) (27 ) 203 (66 ) (17 ) — Charge-offs (3 ) — — — — — (2 ) — (5 ) Recoveries 5 — — — — — 42 — 47 Ending balance $ 2,597 $ 2,339 $ 7,390 $ 508 $ 952 $ 746 $ 325 $ 956 $ 15,813 Allowance for Loan Losses Rollforward for the Period (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Unallocated Total Six months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 2,436 $ 2,407 $ 7,703 $ 756 $ 915 $ 800 $ 310 $ 494 $ 15,821 Provision (reversal) (70 ) (86 ) 6 (137 ) (8 ) 49 13 233 — Charge-offs (9 ) — — — — — — — (9 ) Recoveries 11 — 12 — — — — — 23 Ending balance $ 2,368 $ 2,321 $ 7,721 $ 619 $ 907 $ 849 $ 323 $ 727 $ 15,835 Six months ended June 30, 2018 Allowance for loan losses: Beginning balance $ 3,654 $ 2,294 $ 6,475 $ 681 $ 1,031 $ 536 $ 378 $ 718 $ 15,767 Provision (reversal) (1,063 ) 45 915 (173 ) (79 ) 210 (93 ) 238 — Charge-offs (3 ) — — — — — (2 ) — (5 ) Recoveries 9 — — — — — 42 — 51 Ending balance $ 2,597 $ 2,339 $ 7,390 $ 508 $ 952 $ 746 $ 325 $ 956 $ 15,813 Allowance for Loan Losses and Recorded Investment in Loans (dollars in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Unallocated Total June 30, 2019 Ending ALLL related to loans collectively evaluated for impairment $ 2,026 $ 2,198 $ 7,679 $ 619 $ 902 $ 849 $ 259 $ 727 $ 15,259 Ending ALLL related to loans individually evaluated for impairment 342 123 42 — 5 — 64 — 576 Ending ALLL related to PCI loans — — — — — — — — — Ending balance $ 2,368 $ 2,321 $ 7,721 $ 619 $ 907 $ 849 $ 323 $ 727 $ 15,835 Recorded Investment: Collectively evaluated for impairment $ 233,326 $ 298,162 $ 876,351 $ 63,075 $ 125,483 $ 123,663 $ 30,435 $ — $ 1,750,495 Individually evaluated for impairment 1,489 7,000 1,796 488 408 457 665 — 12,303 PCI loans 17 1,165 822 — 77 — — — 2,081 Total $ 234,832 $ 306,327 $ 878,969 $ 63,563 $ 125,968 $ 124,120 $ 31,100 $ — $ 1,764,879 Ratio of allowance for loan losses to total loans 1.01 % 0.76 % 0.88 % 0.97 % 0.72 % 0.68 % 1.04 % NM 0.90 % Allowance for loan losses to non-accrual loans 669 % NM NM NM 578 % NM 513 % NM 2,759 % NM - Not Meaningful Allowance for Loan Losses and Recorded Investment in Loans (dollars in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Unallocated Total December 31, 2018 Ending ALLL related to loans collectively evaluated for impairment $ 1,970 $ 2,218 $ 7,658 $ 756 $ 910 $ 800 $ 237 $ 494 $ 15,043 Ending ALLL related to loans individually evaluated for impairment 466 189 45 — 5 — 73 — 778 Ending ALLL related to purchased credit-impaired loans — — — — — — — — — Ending balance $ 2,436 $ 2,407 $ 7,703 $ 756 $ 915 $ 800 $ 310 $ 494 $ 15,821 Recorded Investment: Collectively evaluated for impairment $ 228,883 $ 305,097 $ 870,778 $ 73,735 $ 124,049 $ 117,385 $ 26,787 $ — $ 1,746,714 Individually evaluated for impairment 1,825 6,993 1,821 2,688 564 462 685 — 15,038 Purchased credit-impaired 31 1,187 811 — 83 — — — 2,112 Total $ 230,739 $ 313,277 $ 873,410 $ 76,423 $ 124,696 $ 117,847 $ 27,472 $ — $ 1,763,864 Ratio of allowance for loan losses to total loans 1.06 % 0.77 % 0.88 % 0.99 % 0.73 % 0.68 % 1.13 % NM 0.90 % Allowance for loan losses to non-accrual loans 764 % NM NM NM 292 % NM NM NM 2,270 % NM - Not Meaningful |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table reflects the unpaid principal balance and related carrying value of PCI loans. PCI Loans June 30, 2019 December 31, 2018 (in thousands) Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value Commercial and industrial $ 64 $ 17 $ 89 $ 31 Commercial real estate, owner occupied 1,221 1,165 1,247 1,187 Commercial real estate, investor 1,017 822 1,033 811 Home equity 200 77 210 83 Total purchased credit-impaired loans $ 2,502 $ 2,081 $ 2,579 $ 2,112 |
Accretable Yield Activity | The activities in the accretable yield, or income expected to be earned over the remaining lives of the PCI loans were as follows: Accretable Yield Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Balance at beginning of period $ 875 $ 1,142 $ 934 $ 1,254 Accretion (56 ) (83 ) (115 ) (195 ) Balance at end of period $ 819 $ 1,059 $ 819 $ 1,059 |
Commitments and Contingencies -
Commitments and Contingencies - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Undrawn Loan Commitments and Standby Letters of Credit | The contractual amount of undrawn loan commitments and standby letters of credit not reflected in the consolidated statements of condition are as follows: (in thousands) June 30, 2019 December 31, 2018 Commercial lines of credit $ 234,953 $ 238,361 Revolving home equity lines 187,244 189,971 Undisbursed construction loans 49,037 46,229 Personal and other lines of credit 9,779 14,109 Standby letters of credit 2,014 2,636 Total commitments and standby letters of credit $ 483,027 $ 491,306 |
Schedule of Operating and Finance Lease Right-of-use Assets and Lease Liabilities | The following table shows the balances of operating and finance lease right-of-use assets and lease liabilities as of June 30, 2019 . (in thousands) June 30, 2019 Operating leases: Operating lease right-of-use assets $ 12,515 Operating lease liabilities $ 14,332 Finance leases: Finance lease right-of-use assets $ 380 Accumulated amortization (85 ) Finance lease right-of-use assets, net 1 $ 295 Finance lease liabilities 2 $ 297 1 Included in premises and equipment in the consolidated statements of condition. 2 Included in borrowings and other obligations in the consolidated statements of condition. |
Schedule of Components of Operating and Finance Lease Cost | The following table shows supplemental disclosures of noncash investing and financing activities for the period presented. There were no lease-related noncash investing and financing activities for the six months ended June 30, 2018. Six months ended (in thousands) June 30, 2019 Right-of-use assets obtained in exchange for operating lease liabilities $ 1,286 Right-of-use assets obtained in exchange for finance lease liabilities $ 31 Reclassification of deferred rent and unamortized lease incentives from other liabilities to operating lease right-of-use assets $ 1,967 The following table shows components of operating and finance lease cost. Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2019 Operating lease cost 1 $ 1,067 $ 2,071 Finance lease cost: Amortization of right-of-use assets 2 $ 43 $ 85 Interest on finance lease liabilities 3 2 5 Total finance lease cost $ 45 $ 90 Total lease cost $ 1,112 $ 2,161 1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income. 2 Included in depreciation and amortization in the consolidated statements of comprehensive income. 3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income. |
Schedule of Operating Lease Liability Maturities | The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of June 30, 2019 . Total minimum lease payments do not include obligations of approximately $398 thousand for an operating lease that has not commenced. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the later of the date we adopted the new lease accounting standards or lease commencement date. (in thousands) June 30, 2019 Year Operating Leases Finance Leases 2019 $ 2,277 $ 89 2020 4,424 170 2021 2,746 37 2022 1,890 8 2023 1,400 1 Thereafter 2,716 — Total minimum lease payments 15,453 305 Amounts representing interest (present value discount) (1,121 ) (8 ) Present value of net minimum lease payments $ 14,332 $ 297 Weighted average remaining term (in years) 5.1 1.8 Weighted average discount rate 2.81 % 2.88 % |
Schedule of Finance Lease Liability Maturities | The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of June 30, 2019 . Total minimum lease payments do not include obligations of approximately $398 thousand for an operating lease that has not commenced. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the later of the date we adopted the new lease accounting standards or lease commencement date. (in thousands) June 30, 2019 Year Operating Leases Finance Leases 2019 $ 2,277 $ 89 2020 4,424 170 2021 2,746 37 2022 1,890 8 2023 1,400 1 Thereafter 2,716 — Total minimum lease payments 15,453 305 Amounts representing interest (present value discount) (1,121 ) (8 ) Present value of net minimum lease payments $ 14,332 $ 297 Weighted average remaining term (in years) 5.1 1.8 Weighted average discount rate 2.81 % 2.88 % |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Asset Derivatives Liability Derivatives (in thousands) June 30, December 31, 2018 June 30, December 31, 2018 Fair value hedges: Interest rate contracts notional amount $ — $ 8,895 $ 17,437 $ 9,016 Interest rate contracts fair value 1 $ — $ 161 $ 1,118 $ 375 1 See Note 3, Fair Value of Assets and Liabilities, for valuation methodology. The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of June 30, 2019 and December 31, 2018 : Carrying Amounts of Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Loans (in thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Loans $ 18,378 $ 17,917 $ 941 $ 6 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the net gains (losses) recognized in interest income on loans on the consolidated statements of comprehensive income related to our derivatives designated as fair value hedges: Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest and fees on loans 1 $ 20,988 $ 19,624 $ 41,683 $ 38,511 (Decrease) increase in value of designated interest rate swaps due to LIBOR interest rate movements $ (547 ) $ 187 $ (904 ) $ 716 Payment on interest rate swaps (14 ) (40 ) (26 ) (95 ) Increase (decrease) in value of hedged loans 573 (116 ) 935 (693 ) Decrease in value of yield maintenance agreement (3 ) (3 ) (7 ) (7 ) Net gains (losses) on fair value hedging relationships recognized in interest income $ 9 $ 28 $ (2 ) $ (79 ) 1 Represents the income line item in the statement of comprehensive income in which the effects of fair value hedges are recorded. |
Offsetting Assets | nformation on financial instruments that are eligible for offset in the consolidated statements of condition follows: Offsetting of Financial Assets and Derivative Assets Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Assets Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral ( in thousands) Assets 1 Condition of Condition 1 Instruments Received Net Amount June 30, 2019 Derivatives by Counterparty: Counterparty A $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — December 31, 2018 Derivatives by Counterparty: Counterparty A $ 161 $ — $ 161 $ (161 ) $ — $ — Total $ 161 $ — $ 161 $ (161 ) $ — $ — 1 Amounts exclude accrued interest totaling less than $1 thousand at both June 30, 2019 and December 31, 2018 . Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Liabilities Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral (in thousands) Liabilities 2 Condition of Condition 2 Instruments Pledged Net Amount June 30, 2019 Derivatives by Counterparty: Counterparty A $ 1,118 $ — $ 1,118 $ — $ (990 ) $ 128 Total $ 1,118 $ — $ 1,118 $ — $ (990 ) $ 128 December 31, 2018 Derivatives by Counterparty: Counterparty A $ 375 $ — $ 375 $ (161 ) $ — $ 214 Total $ 375 $ — $ 375 $ (161 ) $ — $ 214 |
Offsetting Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Liabilities Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral (in thousands) Liabilities 2 Condition of Condition 2 Instruments Pledged Net Amount June 30, 2019 Derivatives by Counterparty: Counterparty A $ 1,118 $ — $ 1,118 $ — $ (990 ) $ 128 Total $ 1,118 $ — $ 1,118 $ — $ (990 ) $ 128 December 31, 2018 Derivatives by Counterparty: Counterparty A $ 375 $ — $ 375 $ (161 ) $ — $ 214 Total $ 375 $ — $ 375 $ (161 ) $ — $ 214 2 Amounts exclude accrued interest totaling $3 thousand at both June 30, 2019 and December 31, 2018 . |
Basis of Presentation - Reconci
Basis of Presentation - Reconciliation of Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Nov. 27, 2018 | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Weighted average basic shares outstanding (shares) | [1] | 13,655 | 13,888 | 13,696 | 13,858 | |
Potentially dilutive common shares related to: | ||||||
Stock options (shares) | 142 | 149 | 149 | 149 | ||
Unvested restricted stock awards (shares) | 21 | 29 | 26 | 32 | ||
Weighted average diluted shares outstanding (shares) | [1] | 13,818 | 14,066 | 13,871 | 14,039 | |
Net income | $ | $ 8,235 | $ 7,891 | $ 15,714 | $ 14,280 | ||
Basic EPS (usd per share) | $ / shares | [1] | $ 0.60 | $ 0.57 | $ 1.15 | $ 1.03 | |
Diluted EPS (usd per share) | $ / shares | [1] | $ 0.60 | $ 0.56 | $ 1.13 | $ 1.02 | |
Weighted average anti-dilutive shares not included in the calculation of diluted EPS (shares) | 44 | 60 | 30 | 69 | ||
Stock split, conversion ratio | 2 | |||||
[1] | Share and per share data have been adjusted to reflect the two -for-one stock split effective November 27, 2018. |
Recently Adopted and Issued A_2
Recently Adopted and Issued Accounting Standards - Narrative (Details) - Accounting Standards Update 2016-02 $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease and finance lease, right-of-use asset | $ 13.4 |
Operating lease and finance lease, liability | $ 15.4 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Recorded on a 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] | ||
Available-for-sale securities | $ 378,131 | $ 462,464 |
SBA-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 39,805 | 50,781 |
Debentures of government- sponsored agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 28,784 | 53,018 |
Privately-issued collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 159 | 297 |
Obligations of state and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 49,259 | 77,960 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,009 | 2,005 |
Assets and liabilities at fair value measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts) | 0 | 0 |
Derivative financial liabilities (interest rate contracts) | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Interest rate contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts) | 0 | 161 |
Derivative financial liabilities (interest rate contracts) | 1,118 | 375 |
Assets and liabilities at fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Interest rate contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts) | 0 | 0 |
Derivative financial liabilities (interest rate contracts) | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 258,115 | 278,403 |
Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 39,805 | 50,781 |
Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Debentures of government- sponsored agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Debentures of government- sponsored agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 28,784 | 53,018 |
Assets and liabilities at fair value measured on a recurring basis | Debentures of government- sponsored agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Privately-issued collateralized mortgage obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Privately-issued collateralized mortgage obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 159 | 297 |
Assets and liabilities at fair value measured on a recurring basis | Privately-issued collateralized mortgage obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 49,259 | 77,960 |
Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,009 | 2,005 |
Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Interest rate contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts) | 0 | 161 |
Derivative financial liabilities (interest rate contracts) | 1,118 | 375 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 258,115 | 278,403 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 39,805 | 50,781 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government- sponsored agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 28,784 | 53,018 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Privately-issued collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 159 | 297 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 49,259 | 77,960 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 2,009 | $ 2,005 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Narrative (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)security | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Write down of held to maturity securities | $ | $ 0 | $ 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value, non-recurring basis | $ | $ 0 | $ 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of securities | security | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of securities | security | 0 | 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets (recorded at amortized cost) | ||
Investment securities held-to-maturity | $ 151,118 | $ 153,894 |
Carrying Amounts | Level 1 | ||
Financial assets (recorded at amortized cost) | ||
Cash and cash equivalents | 58,757 | 34,221 |
Financial liabilities (recorded at amortized cost) | ||
Federal Home Loan Bank overnight borrowings | 0 | 7,000 |
Carrying Amounts | Level 2 | ||
Financial assets (recorded at amortized cost) | ||
Investment securities held-to-maturity | 148,879 | 157,206 |
Interest receivable | 8,071 | 8,292 |
Financial liabilities (recorded at amortized cost) | ||
Time deposits | 104,306 | 117,182 |
Interest payable | 115 | 104 |
Carrying Amounts | Level 3 | ||
Financial assets (recorded at amortized cost) | ||
Loans, net | 1,749,044 | 1,748,043 |
Financial liabilities (recorded at amortized cost) | ||
Subordinated debentures | 2,674 | 2,640 |
Fair Value | Level 1 | ||
Financial assets (recorded at amortized cost) | ||
Cash and cash equivalents | 58,757 | 34,221 |
Financial liabilities (recorded at amortized cost) | ||
Federal Home Loan Bank overnight borrowings | 0 | 7,000 |
Fair Value | Level 2 | ||
Financial assets (recorded at amortized cost) | ||
Investment securities held-to-maturity | 151,118 | 153,894 |
Interest receivable | 8,071 | 8,292 |
Financial liabilities (recorded at amortized cost) | ||
Time deposits | 103,359 | 116,584 |
Interest payable | 115 | 104 |
Fair Value | Level 3 | ||
Financial assets (recorded at amortized cost) | ||
Loans, net | 1,760,974 | 1,700,971 |
Financial liabilities (recorded at amortized cost) | ||
Subordinated debentures | $ 3,289 | $ 3,268 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | $ 148,879 | $ 157,206 |
Held to maturity, Fair Value | 151,118 | 153,894 |
Held-to-maturity, Gross Unrealized Gains | 2,598 | 210 |
Held-to-maturity, Gross Unrealized Losses | (359) | (3,522) |
Total | 368,712 | 465,910 |
Available-for-sale, at fair value | 378,131 | 462,464 |
Available-for-sale, Gross Unrealized Gains | 9,709 | 1,748 |
Available-for-sale, Gross Unrealized Losses | (290) | (5,194) |
Total investment securities, Amortized Cost | 517,591 | 623,116 |
Total investment securities, Fair Value | 529,249 | 616,358 |
Total investment securities, Gross Unrealized Gains | 12,307 | 1,958 |
Total investment securities, Gross Unrealized Losses | (649) | (8,716) |
MBS pass-through securities issued by FHLMC and FNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 83,493 | 88,606 |
Held to maturity, Fair Value | 84,121 | 85,804 |
Held-to-maturity, Gross Unrealized Gains | 967 | 7 |
Held-to-maturity, Gross Unrealized Losses | (339) | (2,809) |
Total | 70,550 | 95,339 |
Available-for-sale, at fair value | 72,144 | 94,467 |
Available-for-sale, Gross Unrealized Gains | 1,644 | 358 |
Available-for-sale, Gross Unrealized Losses | (50) | (1,230) |
SBA-backed securities | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 8,401 | 8,720 |
Held to maturity, Fair Value | 8,779 | 8,757 |
Held-to-maturity, Gross Unrealized Gains | 378 | 37 |
Held-to-maturity, Gross Unrealized Losses | 0 | 0 |
Total | 38,363 | 50,722 |
Available-for-sale, at fair value | 39,805 | 50,781 |
Available-for-sale, Gross Unrealized Gains | 1,498 | 465 |
Available-for-sale, Gross Unrealized Losses | (56) | (406) |
CMOs issued by FNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 10,972 | 11,447 |
Held to maturity, Fair Value | 11,250 | 11,327 |
Held-to-maturity, Gross Unrealized Gains | 278 | 0 |
Held-to-maturity, Gross Unrealized Losses | 0 | (120) |
Total | 25,832 | 28,275 |
Available-for-sale, at fair value | 26,175 | 28,079 |
Available-for-sale, Gross Unrealized Gains | 352 | 134 |
Available-for-sale, Gross Unrealized Losses | (9) | (330) |
CMOs issued by FHLMC | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 33,095 | 33,583 |
Held to maturity, Fair Value | 33,880 | 33,021 |
Held-to-maturity, Gross Unrealized Gains | 805 | 8 |
Held-to-maturity, Gross Unrealized Losses | (20) | (570) |
Total | 142,175 | 145,979 |
Available-for-sale, at fair value | 146,528 | 144,836 |
Available-for-sale, Gross Unrealized Gains | 4,410 | 454 |
Available-for-sale, Gross Unrealized Losses | (57) | (1,597) |
CMOs issued by GNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 3,750 | 3,739 |
Held to maturity, Fair Value | 3,810 | 3,769 |
Held-to-maturity, Gross Unrealized Gains | 60 | 30 |
Held-to-maturity, Gross Unrealized Losses | 0 | 0 |
Total | 13,275 | 11,294 |
Available-for-sale, at fair value | 13,268 | 11,021 |
Available-for-sale, Gross Unrealized Gains | 33 | 1 |
Available-for-sale, Gross Unrealized Losses | (40) | (274) |
Debentures of government- sponsored agencies | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Total | 28,035 | 52,956 |
Available-for-sale, at fair value | 28,784 | 53,018 |
Available-for-sale, Gross Unrealized Gains | 749 | 185 |
Available-for-sale, Gross Unrealized Losses | 0 | (123) |
Privately issued CMOs | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Total | 159 | 295 |
Available-for-sale, at fair value | 159 | 297 |
Available-for-sale, Gross Unrealized Gains | 1 | 2 |
Available-for-sale, Gross Unrealized Losses | (1) | 0 |
Obligations of state and political subdivisions | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 9,168 | 11,111 |
Held to maturity, Fair Value | 9,278 | 11,216 |
Held-to-maturity, Gross Unrealized Gains | 110 | 128 |
Held-to-maturity, Gross Unrealized Losses | 0 | (23) |
Total | 48,323 | 79,046 |
Available-for-sale, at fair value | 49,259 | 77,960 |
Available-for-sale, Gross Unrealized Gains | 1,012 | 134 |
Available-for-sale, Gross Unrealized Losses | (76) | (1,220) |
Corporate bonds | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Total | 2,000 | 2,004 |
Available-for-sale, at fair value | 2,009 | 2,005 |
Available-for-sale, Gross Unrealized Gains | 10 | 15 |
Available-for-sale, Gross Unrealized Losses | $ (1) | $ (14) |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity Securities, Amortized Cost | ||
Within one year | $ 6,088 | $ 6,194 |
After one but within five years | 3,637 | 5,481 |
After five years through ten years | 57,679 | 59,231 |
After ten years | 81,475 | 86,300 |
Total | 148,879 | 157,206 |
Held-to-maturity Securities, Fair Value | ||
Within one year | 6,095 | 6,182 |
After one but within five years | 3,694 | 5,492 |
After five years through ten years | 59,303 | 58,120 |
After ten years | 82,026 | 84,100 |
Total | 151,118 | 153,894 |
Available-for-sale Securities, Amortized Cost | ||
Within one year | 9,763 | 9,863 |
After one but within five years | 64,474 | 84,871 |
After five years through ten years | 195,243 | 252,274 |
After ten years | 99,232 | 118,902 |
Total | 368,712 | 465,910 |
Available-for-sale Securities, Fair Value | ||
Within one year | 9,753 | 9,795 |
After one but within five years | 65,498 | 84,435 |
After five years through ten years | 201,925 | 250,055 |
After ten years | 100,955 | 118,179 |
Total | $ 378,131 | $ 462,464 |
Investment Securities - Sales o
Investment Securities - Sales of investment securities and gross gains and losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Available-for-sale: | ||||
Sales proceeds | $ 61,852 | $ 5,006 | $ 66,081 | $ 5,006 |
Gross realized gains | 211 | 27 | 214 | 27 |
Gross realized losses | $ (150) | $ (16) | $ (159) | $ (16) |
Investment Securities - Pledged
Investment Securities - Pledged and Transferred Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Public Deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | $ 97,974 | $ 125,696 |
Trust Deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 723 | 734 |
State of California | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 98,697 | 126,430 |
Internal checking account | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | $ 1,990 | $ 2,000 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - security | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Number of investment securities in unrealized loss position | 56 | 229 |
Number of investment securities in unrealized loss position longer than 12 months | 48 | |
Number of investment securities in unrealized loss position less than 12 months | 8 |
Investment Securities - Unreali
Investment Securities - Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 continuous months | $ 343 | $ 3,078 |
Greater than or equal to 12 continuous months | 37,919 | 127,053 |
Total Securities in a loss position | 38,262 | 130,131 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 continuous months | (3) | (12) |
Greater than or equal to 12 continuous months | (356) | (3,510) |
Held-to-maturity, Gross Unrealized Losses | (359) | (3,522) |
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 8,290 | 81,533 |
Available-for-sale, greater than 12 continuous months, Fair value | 56,645 | 234,850 |
Available-for-sale, Total Securities in a loss position, Fair Value | 64,935 | 316,383 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | (4) | (657) |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (286) | (4,537) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (290) | (5,194) |
Marketable Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Marketable securities, less than 12 continuous months, Fair value | 8,633 | 84,611 |
Marketable securities, greater than 12 continuous months, Fair value | 94,564 | 361,903 |
Marketable securities, Total Securities in a loss position, Fair value | 103,197 | 446,514 |
Marketable Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Marketable securities, less than 12 continuous months, Unrealized loss | (7) | (669) |
Marketable securities, greater than 12 continuous months, Unrealized loss | (642) | (8,047) |
Marketable securities, Total Securities in a loss position, Unrealized loss | (649) | (8,716) |
MBS pass-through securities issued by FHLMC and FNMA | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 continuous months | 343 | 198 |
Greater than or equal to 12 continuous months | 34,714 | 83,990 |
Total Securities in a loss position | 35,057 | 84,188 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 continuous months | (3) | (9) |
Greater than or equal to 12 continuous months | (336) | (2,800) |
Held-to-maturity, Gross Unrealized Losses | (339) | (2,809) |
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 0 | 19,971 |
Available-for-sale, greater than 12 continuous months, Fair value | 13,537 | 50,077 |
Available-for-sale, Total Securities in a loss position, Fair Value | 13,537 | 70,048 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | (128) |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (50) | (1,102) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (50) | (1,230) |
SBA-backed securities | ||
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 0 | 13,175 |
Available-for-sale, greater than 12 continuous months, Fair value | 3,113 | 20,123 |
Available-for-sale, Total Securities in a loss position, Fair Value | 3,113 | 33,298 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | (122) |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (56) | (284) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (56) | (406) |
CMOs issued by FNMA | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 continuous months | 0 | |
Greater than or equal to 12 continuous months | 11,327 | |
Total Securities in a loss position | 11,327 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 continuous months | 0 | |
Greater than or equal to 12 continuous months | (120) | |
Held-to-maturity, Gross Unrealized Losses | (120) | |
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 0 | 2,345 |
Available-for-sale, greater than 12 continuous months, Fair value | 3,877 | 16,138 |
Available-for-sale, Total Securities in a loss position, Fair Value | 3,877 | 18,483 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | (8) |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (9) | (322) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (9) | (330) |
CMOs issued by FHLMC | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 continuous months | 0 | 2,880 |
Greater than or equal to 12 continuous months | 3,205 | 28,171 |
Total Securities in a loss position | 3,205 | 31,051 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 continuous months | 0 | (3) |
Greater than or equal to 12 continuous months | (20) | (567) |
Held-to-maturity, Gross Unrealized Losses | (20) | (570) |
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 8,153 | 24,094 |
Available-for-sale, greater than 12 continuous months, Fair value | 17,767 | 74,243 |
Available-for-sale, Total Securities in a loss position, Fair Value | 25,920 | 98,337 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | (2) | (330) |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (55) | (1,267) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (57) | (1,597) |
CMOs issued by GNMA | ||
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 56 | 1,666 |
Available-for-sale, greater than 12 continuous months, Fair value | 7,948 | 9,112 |
Available-for-sale, Total Securities in a loss position, Fair Value | 8,004 | 10,778 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | (1) | (7) |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (39) | (267) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (40) | (274) |
Debentures of government- sponsored agencies | ||
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 0 | 4,992 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 11,349 |
Available-for-sale, Total Securities in a loss position, Fair Value | 0 | 16,341 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | (8) |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | (115) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | 0 | (123) |
Privately issued CMOs | ||
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 81 | |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | |
Available-for-sale, Total Securities in a loss position, Fair Value | 81 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | (1) | |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (1) | |
Obligations of state and political subdivisions | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 continuous months | 0 | |
Greater than or equal to 12 continuous months | 3,565 | |
Total Securities in a loss position | 3,565 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 continuous months | 0 | |
Greater than or equal to 12 continuous months | (23) | |
Held-to-maturity, Gross Unrealized Losses | (23) | |
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 0 | 15,290 |
Available-for-sale, greater than 12 continuous months, Fair value | 9,395 | 52,804 |
Available-for-sale, Total Securities in a loss position, Fair Value | 9,395 | 68,094 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | (54) |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (76) | (1,166) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (76) | (1,220) |
Corporate bonds | ||
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, less than 12 continuous months, Fair value | 0 | 0 |
Available-for-sale, greater than 12 continuous months, Fair value | 1,008 | 1,004 |
Available-for-sale, Total Securities in a loss position, Fair Value | 1,008 | 1,004 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (1) | (14) |
Available-for-sale, Total Securities in a loss position, Unrealized loss | $ (1) | $ (14) |
Investment Securities - Non-Mar
Investment Securities - Non-Marketable Securities (Details) | Nov. 27, 2018 | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)shares | Jul. 25, 2019 |
Schedule of Equity Method Investments [Line Items] | |||||
Federal Home Loan Bank stock, par value (usd per share) | $ / shares | $ 100 | ||||
Conversion rate on common stock | 2 | ||||
Investments in low income housing tax credit funds | $ 4,400,000 | $ 4,600,000 | |||
Low income housing tax credits and other tax benefits | 305,000 | ||||
Low income housing amortization expense | 232,000 | ||||
Unfunded commitments for low income housing tax credit funds | $ 3,100,000 | ||||
Visa Inc. Class B common stock | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of shares of securities carried at cost (in shares) | shares | 10,439 | 10,439,000 | |||
Carrying value of securities carried at cost | $ 0 | $ 0 | |||
Fair value of Class B common stock | $ 3,000,000 | $ 2,200,000 | |||
Visa Inc. | Visa Inc. Class B common stock | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Conversion rate on common stock | 1.6298 | 1.6298 | |||
Other assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Federal Home Loan Bank stock | $ 11,700,000 | $ 11,100,000 | |||
Subsequent Event | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Federal Home Loan Bank, dividend rate percentage | 7.00% | ||||
Low-Income Housing Tax Credit Investment | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Impairment losses | $ 0 | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Outstanding and Aging Analysis (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,764,879,000 | $ 1,763,864,000 |
Unpaid balances on purchase credit impaired (PCI) loans | 0 | 0 |
Purchased Credit-impaired (PCI) loans accreting interest | 2,100,000 | 2,100,000 |
Loans past due more than 90 days still accruing | 0 | 0 |
Deferred loan fees | 781,000 | 635,000 |
Unaccreted purchase discounts on non-PCI loans | 669,000 | 708,000 |
Commercial loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 234,832,000 | 230,739,000 |
Commercial real estate loans | Commercial real estate, owner-occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 306,327,000 | 313,277,000 |
Commercial real estate loans | Commercial real estate, investor | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 878,969,000 | 873,410,000 |
Commercial real estate loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 63,563,000 | 76,423,000 |
Residential loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 125,968,000 | 124,696,000 |
Residential loans | Other residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 124,120,000 | 117,847,000 |
Consumer loans | Installment and other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 31,100,000 | 27,472,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 520,000 | 1,121,000 |
Current | 1,764,359,000 | 1,762,743,000 |
Total loans | 1,764,879,000 | 1,763,864,000 |
Non-accrual | 574,000 | 697,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 416,000 | 1,121,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 20,000 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 84,000 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 5,000 |
Current | 234,832,000 | 230,734,000 |
Total loans | 234,832,000 | 230,739,000 |
Non-accrual | 354,000 | 319,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial loans | Commercial and industrial | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 5,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial loans | Commercial and industrial | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial loans | Commercial and industrial | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Commercial real estate, owner-occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Current | 306,327,000 | 313,277,000 |
Total loans | 306,327,000 | 313,277,000 |
Non-accrual | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Commercial real estate, owner-occupied | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Commercial real estate, owner-occupied | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Commercial real estate, owner-occupied | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Commercial real estate, investor | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 1,004,000 |
Current | 878,969,000 | 872,406,000 |
Total loans | 878,969,000 | 873,410,000 |
Non-accrual | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Commercial real estate, investor | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 1,004,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Commercial real estate, investor | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Commercial real estate, investor | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Current | 63,563,000 | 76,423,000 |
Total loans | 63,563,000 | 76,423,000 |
Non-accrual | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Construction | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Construction | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial real estate loans | Construction | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 356,000 | 0 |
Current | 125,612,000 | 124,696,000 |
Total loans | 125,968,000 | 124,696,000 |
Non-accrual | 157,000 | 313,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential loans | Home equity | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 272,000 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential loans | Home equity | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential loans | Home equity | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 84,000 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential loans | Other residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Current | 124,120,000 | 117,847,000 |
Total loans | 124,120,000 | 117,847,000 |
Non-accrual | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential loans | Other residential | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential loans | Other residential | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential loans | Other residential | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Installment and other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 164,000 | 112,000 |
Current | 30,936,000 | 27,360,000 |
Total loans | 31,100,000 | 27,472,000 |
Non-accrual | 63,000 | 65,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Installment and other consumer | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 144,000 | 112,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Installment and other consumer | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 20,000 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Installment and other consumer | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | $ 0 | $ 0 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Credit Quality (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 1,764,879 | $ 1,763,864 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,713,077 | 1,733,916 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 41,551 | 17,340 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 10,251 | 12,608 |
Purchased credit-impaired | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 2,081 | 2,112 |
Purchased credit-impaired | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 2,081 | 2,112 |
Purchased credit-impaired | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 0 | 0 |
Purchased credit-impaired | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 0 | 0 |
Commercial loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 234,815 | 230,708 |
Total loans | 234,832 | 230,739 |
Commercial loans | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 208,201 | 219,625 |
Commercial loans | Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 25,926 | 9,957 |
Commercial loans | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 688 | 1,126 |
Commercial loans | Purchased credit-impaired | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 17 | 31 |
Commercial real estate loans | Commercial real estate, owner-occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 305,162 | 312,090 |
Total loans | 306,327 | 313,277 |
Commercial real estate loans | Commercial real estate, owner-occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 285,221 | 299,998 |
Commercial real estate loans | Commercial real estate, owner-occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 10,861 | 4,106 |
Commercial real estate loans | Commercial real estate, owner-occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 9,080 | 7,986 |
Commercial real estate loans | Commercial real estate, investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 878,147 | 872,599 |
Total loans | 878,969 | 873,410 |
Commercial real estate loans | Commercial real estate, investor | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 875,504 | 870,443 |
Commercial real estate loans | Commercial real estate, investor | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 2,643 | 2,156 |
Commercial real estate loans | Commercial real estate, investor | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 0 | 0 |
Commercial real estate loans | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 63,563 | 76,423 |
Total loans | 63,563 | 76,423 |
Commercial real estate loans | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 63,563 | 73,735 |
Commercial real estate loans | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 0 | 0 |
Commercial real estate loans | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 0 | 2,688 |
Commercial real estate loans | Purchased credit-impaired | Commercial real estate, owner-occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 1,165 | 1,187 |
Commercial real estate loans | Purchased credit-impaired | Commercial real estate, investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 822 | 811 |
Commercial real estate loans | Purchased credit-impaired | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 0 | 0 |
Residential loans | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 125,891 | 124,613 |
Total loans | 125,968 | 124,696 |
Residential loans | Home equity | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 123,440 | 122,844 |
Residential loans | Home equity | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 2,121 | 1,121 |
Residential loans | Home equity | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans excluding purchased credit-impaired loans | 330 | 648 |
Residential loans | Other residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 124,120 | 117,847 |
Residential loans | Other residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 124,120 | 117,847 |
Residential loans | Other residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Residential loans | Other residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Residential loans | Purchased credit-impaired | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 77 | 83 |
Residential loans | Purchased credit-impaired | Other residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | 0 | 0 |
Consumer loans | Installment and other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 31,100 | 27,472 |
Consumer loans | Installment and other consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 30,947 | 27,312 |
Consumer loans | Installment and other consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Installment and other consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 153 | 160 |
Consumer loans | Purchased credit-impaired | Installment and other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Purchased credit-impaired | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Troubled Debt Restructuring by Class (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment of loans removed from TDR resignation | $ 3,000 | $ 150,000 | |
Recorded investment in Troubled Debt Restructurings | 12,090,000 | $ 14,406,000 | |
TDR loans acquired | 0 | 0 | |
TDR loans on non-accrual status | $ 361,000 | 65,000 | |
Commercial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans removed from TDR designation | loan | 1 | ||
Commercial loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment in Troubled Debt Restructurings | $ 1,433,000 | 1,506,000 | |
Commercial real estate loans | Commercial real estate, owner-occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment in Troubled Debt Restructurings | 7,000,000 | 6,993,000 | |
Commercial real estate loans | Commercial real estate, investor | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment in Troubled Debt Restructurings | 1,796,000 | 1,821,000 | |
Commercial real estate loans | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment in Troubled Debt Restructurings | 488,000 | 2,688,000 | |
Residential loans | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment in Troubled Debt Restructurings | 251,000 | 251,000 | |
Residential loans | Other residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans removed from TDR designation | loan | 1 | ||
Recorded investment in Troubled Debt Restructurings | 457,000 | 462,000 | |
Consumer loans | Installment and other consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment in Troubled Debt Restructurings | $ 665,000 | $ 685,000 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Troubled Debt Restructuring Modifications (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contractloan | Jun. 30, 2018USD ($)contractloan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of modified TDR loans that defaulted | loan | 0 | 0 | ||
Commercial loans | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts Modified | contract | 1 | 2 | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 298 | $ 254 | $ 298 | $ 254 |
Post-Modification Outstanding Recorded Investment | 298 | 245 | 298 | 245 |
Post-Modification Outstanding Recorded Investment at Period End | $ 298 | $ 235 | $ 298 | $ 235 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired and Related Allowance (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | $ 1,527,000 | $ 1,527,000 | $ 3,877,000 | ||
With a specific allowance recorded | 10,776,000 | 10,776,000 | 11,161,000 | ||
Total recorded investment in impaired loans | 12,303,000 | 12,303,000 | 15,038,000 | ||
Unpaid principal balance of impaired loans | 12,267,000 | 12,267,000 | 15,013,000 | ||
Specific allowance | 576,000 | 576,000 | 778,000 | ||
Average recorded investment in impaired loans during the period | 13,523,000 | $ 16,213,000 | 14,028,000 | $ 16,438,000 | |
Interest income recognized on impaired loans during the period ended | 158,000 | 177,000 | 323,000 | 483,000 | |
Interest income recognized on impaired loans during the period ended, cash basis | 24,000 | 0 | 24,000 | 128,000 | |
Charge-off amounts on impaired loans | 0 | 0 | |||
Outstanding commitments to extend credit on impaired loans | 599,000 | 599,000 | 1,100,000 | ||
Commercial loans | Commercial and industrial | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 320,000 | 320,000 | 303,000 | ||
With a specific allowance recorded | 1,169,000 | 1,169,000 | 1,522,000 | ||
Total recorded investment in impaired loans | 1,489,000 | 1,489,000 | 1,825,000 | ||
Unpaid principal balance of impaired loans | 1,472,000 | 1,472,000 | 1,813,000 | ||
Specific allowance | 342,000 | 342,000 | 466,000 | ||
Average recorded investment in impaired loans during the period | 1,498,000 | 2,092,000 | 1,607,000 | 2,104,000 | |
Interest income recognized on impaired loans during the period ended | 19,000 | 28,000 | 41,000 | 183,000 | |
Commercial real estate loans | Commercial real estate, owner-occupied | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 0 | 0 | 0 | ||
With a specific allowance recorded | 7,000,000 | 7,000,000 | 6,993,000 | ||
Total recorded investment in impaired loans | 7,000,000 | 7,000,000 | 6,993,000 | ||
Unpaid principal balance of impaired loans | 6,993,000 | 6,993,000 | 6,993,000 | ||
Specific allowance | 123,000 | 123,000 | 189,000 | ||
Average recorded investment in impaired loans during the period | 7,000,000 | 7,005,000 | 6,998,000 | 7,003,000 | |
Interest income recognized on impaired loans during the period ended | 66,000 | 66,000 | 132,000 | 132,000 | |
Commercial real estate loans | Commercial real estate, investor | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 0 | 0 | 0 | ||
With a specific allowance recorded | 1,796,000 | 1,796,000 | 1,821,000 | ||
Total recorded investment in impaired loans | 1,796,000 | 1,796,000 | 1,821,000 | ||
Unpaid principal balance of impaired loans | 1,789,000 | 1,789,000 | 1,812,000 | ||
Specific allowance | 42,000 | 42,000 | 45,000 | ||
Average recorded investment in impaired loans during the period | 1,804,000 | 1,849,000 | 1,809,000 | 1,956,000 | |
Interest income recognized on impaired loans during the period ended | 20,000 | 20,000 | 39,000 | 42,000 | |
Commercial real estate loans | Construction | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 488,000 | 488,000 | 2,688,000 | ||
With a specific allowance recorded | 0 | 0 | 0 | ||
Total recorded investment in impaired loans | 488,000 | 488,000 | 2,688,000 | ||
Unpaid principal balance of impaired loans | 486,000 | 486,000 | 2,688,000 | ||
Specific allowance | 0 | 0 | 0 | ||
Average recorded investment in impaired loans during the period | 1,590,000 | 2,833,000 | 1,956,000 | 2,878,000 | |
Interest income recognized on impaired loans during the period ended | 13,000 | 37,000 | 56,000 | 75,000 | |
Residential loans | Home equity | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 157,000 | 157,000 | 313,000 | ||
With a specific allowance recorded | 251,000 | 251,000 | 251,000 | ||
Total recorded investment in impaired loans | 408,000 | 408,000 | 564,000 | ||
Unpaid principal balance of impaired loans | 407,000 | 407,000 | 562,000 | ||
Specific allowance | 5,000 | 5,000 | 5,000 | ||
Average recorded investment in impaired loans during the period | 503,000 | 736,000 | 523,000 | 742,000 | |
Interest income recognized on impaired loans during the period ended | 29,000 | 5,000 | 33,000 | 10,000 | |
Residential loans | Other residential | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 457,000 | 457,000 | 462,000 | ||
With a specific allowance recorded | 0 | 0 | 0 | ||
Total recorded investment in impaired loans | 457,000 | 457,000 | 462,000 | ||
Unpaid principal balance of impaired loans | 456,000 | 456,000 | 461,000 | ||
Specific allowance | 0 | 0 | 0 | ||
Average recorded investment in impaired loans during the period | 458,000 | 990,000 | 460,000 | 1,043,000 | |
Interest income recognized on impaired loans during the period ended | 5,000 | 13,000 | 9,000 | 26,000 | |
Consumer loans | Installment and other consumer | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 105,000 | 105,000 | 111,000 | ||
With a specific allowance recorded | 560,000 | 560,000 | 574,000 | ||
Total recorded investment in impaired loans | 665,000 | 665,000 | 685,000 | ||
Unpaid principal balance of impaired loans | 664,000 | 664,000 | 684,000 | ||
Specific allowance | 64,000 | 64,000 | $ 73,000 | ||
Average recorded investment in impaired loans during the period | 670,000 | 708,000 | 675,000 | 712,000 | |
Interest income recognized on impaired loans during the period ended | $ 6,000 | $ 8,000 | $ 13,000 | $ 15,000 | |
Purchased credit-impaired | Commercial loans | |||||
Recorded investment in impaired loans: | |||||
Number of impaired loans with interest income recognized | loan | 2 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Allowance for Loan Losses (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 | |
Allowance for loan losses: | |||||
Beginning balance | $ 15,817 | $ 15,771 | $ 15,821 | $ 15,767 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | (5) | (9) | (5) | |
Recoveries | 18 | 47 | 23 | 51 | |
Ending balance | 15,835 | 15,813 | 15,835 | 15,813 | |
Ending ALLL related to loans collectively evaluated for impairment | 15,259 | 15,259 | $ 15,043 | ||
Ending ALLL related to loans individually evaluated for impairment | 576 | 576 | 778 | ||
Ending ALLL | 15,835 | 15,835 | 15,821 | ||
Collectively evaluated for impairment | 1,750,495 | 1,750,495 | 1,746,714 | ||
Individually evaluated for impairment | 12,303 | 12,303 | 15,038 | ||
Total loans | $ 1,764,879 | $ 1,764,879 | $ 1,763,864 | ||
Ratio of allowance for loan losses to total loans | 0.90% | 0.90% | 0.90% | ||
Allowance for loan losses to non-accrual loans | 2759.00% | 2759.00% | 2270.00% | ||
Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | $ 0 | $ 0 | $ 0 | ||
Purchased credit-impaired | 2,081 | 2,081 | 2,112 | ||
Commercial loans | Commercial and industrial | |||||
Allowance for loan losses: | |||||
Beginning balance | 2,612 | 3,693 | 2,436 | 3,654 | |
Provision for loan losses | (250) | (1,098) | (70) | (1,063) | |
Charge-offs | 0 | (3) | (9) | (3) | |
Recoveries | 6 | 5 | 11 | 9 | |
Ending balance | 2,368 | 2,597 | 2,368 | 2,597 | |
Ending ALLL related to loans collectively evaluated for impairment | 2,026 | 2,026 | 1,970 | ||
Ending ALLL related to loans individually evaluated for impairment | 342 | 342 | 466 | ||
Ending ALLL | 2,368 | 2,368 | 2,436 | ||
Collectively evaluated for impairment | 233,326 | 233,326 | 228,883 | ||
Individually evaluated for impairment | 1,489 | 1,489 | 1,825 | ||
Total loans | $ 234,832 | $ 234,832 | $ 230,739 | ||
Ratio of allowance for loan losses to total loans | 1.01% | 1.01% | 1.06% | ||
Allowance for loan losses to non-accrual loans | 669.00% | 669.00% | |||
Commercial loans | Commercial and industrial | Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | $ 0 | $ 0 | $ 0 | ||
Purchased credit-impaired | 17 | 17 | 31 | ||
Commercial real estate loans | Commercial real estate, owner-occupied | |||||
Allowance for loan losses: | |||||
Beginning balance | 2,358 | 2,080 | 2,407 | 2,294 | |
Provision for loan losses | (37) | 259 | (86) | 45 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 2,321 | 2,339 | 2,321 | 2,339 | |
Ending ALLL related to loans collectively evaluated for impairment | 2,198 | 2,198 | 2,218 | ||
Ending ALLL related to loans individually evaluated for impairment | 123 | 123 | 189 | ||
Ending ALLL | 2,321 | 2,321 | 2,407 | ||
Collectively evaluated for impairment | 298,162 | 298,162 | 305,097 | ||
Individually evaluated for impairment | 7,000 | 7,000 | 6,993 | ||
Total loans | $ 306,327 | $ 306,327 | $ 313,277 | ||
Ratio of allowance for loan losses to total loans | 0.76% | 0.76% | 0.77% | ||
Commercial real estate loans | Commercial real estate, owner-occupied | Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | $ 0 | $ 0 | $ 0 | ||
Purchased credit-impaired | 1,165 | 1,165 | 1,187 | ||
Commercial real estate loans | Commercial real estate, investor | |||||
Allowance for loan losses: | |||||
Beginning balance | 7,766 | 6,455 | 7,703 | 6,475 | |
Provision for loan losses | (57) | 935 | 6 | 915 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 12 | 0 | 12 | 0 | |
Ending balance | 7,721 | 7,390 | 7,721 | 7,390 | |
Ending ALLL related to loans collectively evaluated for impairment | 7,679 | 7,679 | 7,658 | ||
Ending ALLL related to loans individually evaluated for impairment | 42 | 42 | 45 | ||
Ending ALLL | 7,721 | 7,721 | 7,703 | ||
Collectively evaluated for impairment | 876,351 | 876,351 | 870,778 | ||
Individually evaluated for impairment | 1,796 | 1,796 | 1,821 | ||
Total loans | $ 878,969 | $ 878,969 | $ 873,410 | ||
Ratio of allowance for loan losses to total loans | 0.88% | 0.88% | 0.88% | ||
Commercial real estate loans | Commercial real estate, investor | Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | $ 0 | $ 0 | $ 0 | ||
Purchased credit-impaired | 822 | 822 | 811 | ||
Commercial real estate loans | Construction | |||||
Allowance for loan losses: | |||||
Beginning balance | 704 | 697 | 756 | 681 | |
Provision for loan losses | (85) | (189) | (137) | (173) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 619 | 508 | 619 | 508 | |
Ending ALLL related to loans collectively evaluated for impairment | 619 | 619 | 756 | ||
Ending ALLL related to loans individually evaluated for impairment | 0 | 0 | 0 | ||
Ending ALLL | 619 | 619 | 756 | ||
Collectively evaluated for impairment | 63,075 | 63,075 | 73,735 | ||
Individually evaluated for impairment | 488 | 488 | 2,688 | ||
Total loans | $ 63,563 | $ 63,563 | $ 76,423 | ||
Ratio of allowance for loan losses to total loans | 0.97% | 0.97% | 0.99% | ||
Commercial real estate loans | Construction | Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | $ 0 | $ 0 | $ 0 | ||
Purchased credit-impaired | 0 | 0 | 0 | ||
Residential loans | Home equity | |||||
Allowance for loan losses: | |||||
Beginning balance | 923 | 979 | 915 | 1,031 | |
Provision for loan losses | (16) | (27) | (8) | (79) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 907 | 952 | 907 | 952 | |
Ending ALLL related to loans collectively evaluated for impairment | 902 | 902 | 910 | ||
Ending ALLL related to loans individually evaluated for impairment | 5 | 5 | 5 | ||
Ending ALLL | 907 | 907 | 915 | ||
Collectively evaluated for impairment | 125,483 | 125,483 | 124,049 | ||
Individually evaluated for impairment | 408 | 408 | 564 | ||
Total loans | $ 125,968 | $ 125,968 | $ 124,696 | ||
Ratio of allowance for loan losses to total loans | 0.72% | 0.72% | 0.73% | ||
Allowance for loan losses to non-accrual loans | 578.00% | 578.00% | 292.00% | ||
Residential loans | Home equity | Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | $ 0 | $ 0 | $ 0 | ||
Purchased credit-impaired | 77 | 77 | 83 | ||
Residential loans | Other residential | |||||
Allowance for loan losses: | |||||
Beginning balance | 800 | 543 | 800 | 536 | |
Provision for loan losses | 49 | 203 | 49 | 210 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 849 | 746 | 849 | 746 | |
Ending ALLL related to loans collectively evaluated for impairment | 849 | 849 | 800 | ||
Ending ALLL related to loans individually evaluated for impairment | 0 | 0 | 0 | ||
Ending ALLL | 849 | 849 | 800 | ||
Collectively evaluated for impairment | 123,663 | 123,663 | 117,385 | ||
Individually evaluated for impairment | 457 | 457 | 462 | ||
Total loans | $ 124,120 | $ 124,120 | $ 117,847 | ||
Ratio of allowance for loan losses to total loans | 0.68% | 0.68% | 0.68% | ||
Residential loans | Other residential | Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | $ 0 | $ 0 | $ 0 | ||
Purchased credit-impaired | 0 | 0 | 0 | ||
Consumer loans | Installment and other consumer | |||||
Allowance for loan losses: | |||||
Beginning balance | 340 | 351 | 310 | 378 | |
Provision for loan losses | (17) | (66) | 13 | (93) | |
Charge-offs | 0 | (2) | 0 | (2) | |
Recoveries | 0 | 42 | 0 | 42 | |
Ending balance | 323 | 325 | 323 | 325 | |
Ending ALLL related to loans collectively evaluated for impairment | 259 | 259 | 237 | ||
Ending ALLL related to loans individually evaluated for impairment | 64 | 64 | 73 | ||
Ending ALLL | 323 | 323 | 310 | ||
Collectively evaluated for impairment | 30,435 | 30,435 | 26,787 | ||
Individually evaluated for impairment | 665 | 665 | 685 | ||
Total loans | $ 31,100 | $ 31,100 | $ 27,472 | ||
Ratio of allowance for loan losses to total loans | 1.04% | 1.04% | 1.13% | ||
Allowance for loan losses to non-accrual loans | 513.00% | 513.00% | |||
Consumer loans | Installment and other consumer | Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | $ 0 | $ 0 | $ 0 | ||
Purchased credit-impaired | 0 | 0 | 0 | ||
Unallocated | |||||
Allowance for loan losses: | |||||
Beginning balance | 314 | 973 | 494 | 718 | |
Provision for loan losses | 413 | (17) | 233 | 238 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 727 | $ 956 | 727 | $ 956 | |
Ending ALLL related to loans collectively evaluated for impairment | 727 | 727 | 494 | ||
Ending ALLL related to loans individually evaluated for impairment | 0 | 0 | 0 | ||
Ending ALLL | 727 | 727 | 494 | ||
Collectively evaluated for impairment | 0 | 0 | 0 | ||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
Unallocated | Purchased credit-impaired | |||||
Allowance for loan losses: | |||||
Ending ALLL | 0 | 0 | 0 | ||
Purchased credit-impaired | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Purchased Credit-Impaired (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 81 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Nov. 21, 2017acquisition | Dec. 31, 2018USD ($) | |
Business Acquisitions, Purchased Credit-Impaired Loans [Line Items] | ||||||
Number of banks acquired | acquisition | 3 | |||||
Accretable Yield [Roll Forward] | ||||||
Balance at beginning of period | $ 875 | $ 1,142 | $ 934 | $ 1,254 | ||
Accretion | (56) | (83) | (115) | (195) | ||
Balance at end of period | 819 | $ 1,059 | 819 | $ 1,059 | ||
Purchased credit-impaired | ||||||
PCI Loans, Carrying Value [Abstract] | ||||||
Unpaid Principal Balance | 2,502 | 2,502 | $ 2,579 | |||
Carrying Value | 2,081 | 2,081 | 2,112 | |||
Purchased credit-impaired | Commercial loans | Commercial and industrial | ||||||
PCI Loans, Carrying Value [Abstract] | ||||||
Unpaid Principal Balance | 64 | 64 | 89 | |||
Carrying Value | 17 | 17 | 31 | |||
Purchased credit-impaired | Commercial real estate loans | Commercial real estate, owner-occupied | ||||||
PCI Loans, Carrying Value [Abstract] | ||||||
Unpaid Principal Balance | 1,221 | 1,221 | 1,247 | |||
Carrying Value | 1,165 | 1,165 | 1,187 | |||
Purchased credit-impaired | Commercial real estate loans | Commercial real estate, investor | ||||||
PCI Loans, Carrying Value [Abstract] | ||||||
Unpaid Principal Balance | 1,017 | 1,017 | 1,033 | |||
Carrying Value | 822 | 822 | 811 | |||
Purchased credit-impaired | Residential loans | Home equity | ||||||
PCI Loans, Carrying Value [Abstract] | ||||||
Unpaid Principal Balance | 200 | 200 | 210 | |||
Carrying Value | $ 77 | $ 77 | $ 83 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Pledged Loans (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Residential loans pledged for FRB borrowings | $ 1,083.5 | $ 1,027.4 |
Other residential | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged residential loan portfolio to secure borrowing with FRB | $ 102.9 | $ 94.5 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Related Party (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Related party loans | $ 9.7 | $ 10.6 |
Directors, Officers, Principal Shareholders and Associates | ||
Related Party Transaction [Line Items] | ||
Undisbursed commitment to related parties | $ 9.1 | $ 9.1 |
Borrowings and Other Obligati_2
Borrowings and Other Obligations - Lines of Credit (Details) - Line of credit - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Federal Funds Purchased | ||
Line of Credit Facility [Line Items] | ||
Amount of borrowings outstanding | $ 0 | $ 0 |
Federal Home Loan Bank Borrowings | ||
Line of Credit Facility [Line Items] | ||
Lines of credit | 633,500,000 | 629,400,000 |
Federal Home Loan Bank Overnight Borrowings | ||
Line of Credit Facility [Line Items] | ||
Amount of borrowings outstanding | 0 | |
Federal Reserve Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Lines of credit | 75,800,000 | 69,700,000 |
Amount of borrowings outstanding | 0 | 0 |
Unsecured Debt | Federal Funds Purchased | ||
Line of Credit Facility [Line Items] | ||
Lines of credit | $ 92,000,000 | $ 92,000,000 |
Federal Home Loan Bank Advances | ||
Line of Credit Facility [Line Items] | ||
FHLB overnight borrowings, overnight rate | 2.56% | |
Federal Home Loan Bank Overnight Borrowings | ||
Line of Credit Facility [Line Items] | ||
FHLB overnight borrowings | $ 7,000,000 |
Borrowings and Other Obligati_3
Borrowings and Other Obligations - Subordinated Debt (Details) - USD ($) $ in Thousands | Oct. 07, 2018 | Nov. 29, 2013 | Jun. 30, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||||
Accretion of discount on subordinated debentures | $ 34 | $ 63 | ||
Amount guaranteed, on subordinated basis, distributions and other payments on trust preferred securities | 4,000 | |||
Subordinated debenture | ||||
Debt Instrument [Line Items] | ||||
Accretion of discount on subordinated debentures | $ 916 | $ 34 | $ 63 | |
Subordinated debentures | $ 2,140 | |||
Contractual value of subordinated debt | $ 4,120 | |||
Debenture distribution deferral period (up to number of years) | 5 years | |||
Subordinated debenture | NorCal Community Bancorp Trust II | ||||
Debt Instrument [Line Items] | ||||
Basis spread on subordinated debentures | 1.40% | |||
Effective interest rate | 3.81% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Jul. 19, 2019$ / shares | Nov. 27, 2018 | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2019USD ($)shares | Apr. 23, 2018USD ($) |
Class of Stock [Line Items] | |||||||||
Stock split, conversion ratio | 2 | ||||||||
Shares withheld for tax withholding and exercise of options (in shares) | shares | 6,937 | 39,726 | |||||||
Amount of shares withheld for tax withholding and exercise of options | $ 290,000 | $ 1,400,000 | |||||||
Shares withheld for tax withholding and exercise of options, weighted average price (usd per share) | $ / shares | $ 41.78 | $ 35.17 | |||||||
Share Repurchase Program, amount approved to repurchase | $ 25,000,000 | ||||||||
Stock repurchased, net of commissions | $ 5,644,000 | $ 104,000 | $ 10,444,000 | $ 104,000 | $ 17,500,000 | ||||
Performance-based stock awards | |||||||||
Class of Stock [Line Items] | |||||||||
Vesting period of performance-based stock awards | 3 years | ||||||||
Performance-based stock awards | Minimum | |||||||||
Class of Stock [Line Items] | |||||||||
Vesting percentage of performance-based awards | 0.00% | ||||||||
Performance-based stock awards | Maximum | |||||||||
Class of Stock [Line Items] | |||||||||
Vesting percentage of performance-based awards | 200.00% | ||||||||
Retained Earnings | |||||||||
Class of Stock [Line Items] | |||||||||
Reclassification from AOCI to retained earnings for stranded income tax effects | $ 638,000 | $ 638,000 | |||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchased, net of commissions (in shares) | shares | 134,620 | 2,796 | 248,524 | 2,796 | 419,741 | ||||
Stock repurchased, net of commissions | $ 5,644,000 | $ 104,000 | $ 10,444,000 | $ 104,000 | |||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends declared per common share (usd per share) | $ / shares | $ 0.21 |
Commitments and Contingencies_2
Commitments and Contingencies - Off Balance Sheet Arrangements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total commitments and standby letters of credit | ||
Other Commitments [Line Items] | ||
Total commitments and standby letters of credit | $ 483,027 | $ 491,306 |
Commercial lines of credit | ||
Other Commitments [Line Items] | ||
Total commitments and standby letters of credit | 234,953 | 238,361 |
Revolving home equity lines | ||
Other Commitments [Line Items] | ||
Total commitments and standby letters of credit | 187,244 | 189,971 |
Undisbursed construction loans | ||
Other Commitments [Line Items] | ||
Total commitments and standby letters of credit | 49,037 | 46,229 |
Personal and other lines of credit | ||
Other Commitments [Line Items] | ||
Total commitments and standby letters of credit | 9,779 | 14,109 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Total commitments and standby letters of credit | $ 2,014 | $ 2,636 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Sep. 17, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2012 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||||||
Operating lease rent expense | $ 1,200 | $ 2,300 | ||||
Obligations for leases not yet commenced | $ 398 | |||||
Litigation Matters | ||||||
Federal Reserve Bank reserve balance requirements included in cash, cash equivalents and restricted cash | $ 10,915 | 9,709 | $ 10,915 | |||
Visa Inc. | ||||||
Litigation Matters | ||||||
Settlement agreement amount | $ 4,000,000 | |||||
Damages sought amended value | $ 4,100,000 | |||||
Federal Reserve Bank reserve balance requirements included in cash, cash equivalents and restricted cash | $ 902,000 | |||||
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Weighted average remaining term (in years) | 1 year | |||||
Finance lease, initial contract terms (in years) | 3 years | |||||
Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Weighted average remaining term (in years) | 13 years | |||||
Finance lease, initial contract terms (in years) | 5 years | |||||
Total commitments and standby letters of credit | Interest payable and other liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Allowance for off balance sheet commitments | $ 1,100 | $ 958 |
Commitments and Contingencies_4
Commitments and Contingencies - Lease Assets and Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating leases: | |
Operating lease right-of-use assets | $ 12,515 |
Operating lease liabilities | 14,332 |
Finance leases: | |
Finance lease right-of-use assets | 380 |
Accumulated amortization | (85) |
Finance lease right-of-use assets, net | 295 |
Finance lease liabilities | $ 297 |
Commitments and Contingencies_5
Commitments and Contingencies - Noncash Investing and Financing Activities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,286 |
Right-of-use assets obtained in exchange for finance lease liabilities | 31 |
Reclassification of deferred rent and unamortized lease incentives from other liabilities to operating lease right-of-use assets | $ 1,967 |
Commitments and Contingencies_6
Commitments and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 1,067 | $ 2,071 |
Finance lease cost: | ||
Amortization of right-of-use assets | 43 | 85 |
Interest on finance lease liabilities | 2 | 5 |
Total finance lease cost | 45 | 90 |
Total lease cost | $ 1,112 | $ 2,161 |
Commitments and Contingencies_7
Commitments and Contingencies - Lease Liability Maturity Schedule (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
2019 | $ 2,277 |
2020 | 4,424 |
2021 | 2,746 |
2022 | 1,890 |
2023 | 1,400 |
Thereafter | 2,716 |
Total minimum lease payments | 15,453 |
Amounts representing interest (present value discount) | (1,121) |
Present value of net minimum lease payments | $ 14,332 |
Weighted average remaining term (in years) | 5 years 1 month 6 days |
Weighted average discount rate | 2.81% |
Finance Lease, Liability, Payment, Due [Abstract] | |
2019 | $ 89 |
2020 | 170 |
2021 | 37 |
2022 | 8 |
2023 | 1 |
Thereafter | 0 |
Total minimum lease payments | 305 |
Amounts representing interest (present value discount) | (8) |
Present value of net minimum lease payments | $ 297 |
Weighted average remaining term (in years) | 1 year 9 months 18 days |
Weighted average discount rate | 2.88% |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Narrative (Details) - Fair value hedge - Designated as hedging instrument $ in Thousands | Jun. 30, 2019USD ($)derivative | Dec. 31, 2018USD ($) |
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps accrued interest | $ | $ 3 | $ 3 |
Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | derivative | 5 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Information on Derivatives (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 | |
Derivatives, Fair Value [Line Items] | |||||
Carrying Amounts of Hedged Assets | $ 18,378 | $ 18,378 | $ 17,917 | ||
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Loans | 941 | 941 | 6 | ||
Interest and fees on loans | 20,988 | $ 19,624 | 41,683 | $ 38,511 | |
Fair value hedge | Interest income | |||||
Derivatives, Fair Value [Line Items] | |||||
(Decrease) increase in value of designated interest rate swaps due to LIBOR interest rate movements | (547) | 187 | (904) | 716 | |
Payment on interest rate swaps | (14) | (40) | (26) | (95) | |
Increase (decrease) in value of hedged loans | 573 | (116) | 935 | (693) | |
Decrease in value of yield maintenance agreement | (3) | (3) | (7) | (7) | |
Net loss on derivatives recognized against interest income | 9 | $ 28 | (2) | $ (79) | |
Fair value hedge | Designated as hedging instrument | Interest rate swap | Other assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest rate contracts notional amount, asset derivatives | 0 | 0 | 8,895 | ||
Interest rate contracts fair value, asset derivatives | 0 | 0 | 161 | ||
Fair value hedge | Designated as hedging instrument | Interest rate swap | Other liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest rate contracts notional amount, liability derivatives | 17,437 | 17,437 | 9,016 | ||
Interest rate contracts fair value, liability derivatives | $ 1,118 | $ 1,118 | $ 375 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Offsetting of Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 0 | $ 161 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 0 | 161 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | (161) |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Interest rate swap | Other assets | ||
Offsetting Assets [Line Items] | ||
Accrued interest on derivative asset interest rate swaps | 1 | 1 |
Counterparty A | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 0 | 161 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 0 | 161 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | (161) |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities - Offsetting of Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 1,118 | $ 375 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 1,118 | 375 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | (161) |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | (990) | 0 |
Net Amount | 128 | 214 |
Interest rate swap | Other liabilities | ||
Offsetting Liabilities [Line Items] | ||
Accrued interest on derivative liability interest swaps | 3 | 3 |
Counterparty A | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 1,118 | 375 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 1,118 | 375 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | (161) |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | (990) | 0 |
Net Amount | $ 128 | $ 214 |