Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FFWM | ||
Entity Registrant Name | First Foundation Inc. | ||
Entity Central Index Key | 1,413,837 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 44,501,613 | ||
Entity Public Float | $ 725 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 67,312 | $ 120,394 |
Securities available-for-sale (“AFS”) | 809,569 | 519,364 |
Loans held for sale | 507,643 | 154,380 |
Loans, net of deferred fees | 4,293,669 | 3,663,727 |
Allowance for loan and lease losses (“ALLL”) | (19,000) | (18,400) |
Net loans | 4,274,669 | 3,645,327 |
Premises and equipment, net | 9,145 | 6,581 |
Investment in FHLB stock | 20,307 | 19,060 |
Deferred taxes | 13,251 | 12,143 |
Real estate owned (“REO”) | 815 | 2,920 |
Goodwill and intangibles | 99,482 | 33,576 |
Other assets | 38,219 | 27,440 |
Total Assets | 5,840,412 | 4,541,185 |
Liabilities: | ||
Deposits | 4,532,968 | 3,443,527 |
Borrowings | 708,000 | 678,000 |
Accounts payable and other liabilities | 40,260 | 24,707 |
Total Liabilities | 5,281,228 | 4,146,234 |
Commitments and contingencies | ||
Shareholders’ Equity | ||
Common Stock, par value $.001: 70,000,000 shares authorized; 44,496,007 and 38,207,766 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 44 | 38 |
Additional paid-in-capital | 431,832 | 314,501 |
Retained earnings | 128,461 | 85,503 |
Accumulated other comprehensive (loss), net of tax | (1,153) | (5,091) |
Total Shareholders’ Equity | 559,184 | 394,951 |
Total Liabilities and Shareholders’ Equity | $ 5,840,412 | $ 4,541,185 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 44,496,007 | 38,207,766 |
Common stock, shares outstanding | 44,496,007 | 38,207,766 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||
Loans | $ 186,211 | $ 121,707 | $ 85,080 |
Securities | 16,855 | 12,407 | 12,781 |
FHLB stock, fed funds sold and interest-bearing deposits | 4,240 | 2,687 | 2,781 |
Total interest income | 207,306 | 136,801 | 100,642 |
Interest expense: | |||
Deposits | 38,776 | 17,443 | 8,916 |
Borrowings | 12,920 | 5,740 | 2,277 |
Total interest expense | 51,696 | 23,183 | 11,193 |
Net interest income | 155,610 | 113,618 | 89,449 |
Provision for loan losses | 4,220 | 2,762 | 4,681 |
Net interest income after provision for loan losses | 151,390 | 110,856 | 84,768 |
Noninterest income: | |||
Revenue from contract with customers | $ 28,748 | $ 26,710 | $ 24,384 |
Type of Revenue [Extensible List] | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember |
Gain on sale of loans | $ 419 | $ 7,029 | $ 7,812 |
Loss on capital market activities | (1,043) | ||
Other income | 6,604 | 4,980 | 3,407 |
Total noninterest income | 35,771 | 38,719 | 34,560 |
Noninterest expense: | |||
Compensation and benefits | 67,508 | 56,558 | 48,574 |
Occupancy and depreciation | 19,779 | 15,396 | 11,978 |
Professional services and marketing costs | 8,583 | 7,687 | 9,825 |
Customer service costs | 15,077 | 7,041 | 1,679 |
Other expenses | 16,128 | 12,294 | 8,938 |
Total noninterest expense | 127,075 | 98,976 | 80,994 |
Income before taxes on income | 60,086 | 50,599 | 38,334 |
Taxes on income | 17,128 | 23,017 | 15,031 |
Net income | $ 42,958 | $ 27,582 | $ 23,303 |
Net income per share: | |||
Basic | $ 1.02 | $ 0.80 | $ 0.72 |
Diluted | $ 1.01 | $ 0.78 | $ 0.70 |
Shares used in computation: | |||
Basic | 42,092,361 | 34,482,630 | 32,365,800 |
Diluted | 42,567,108 | 35,331,059 | 33,471,816 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||||||
Net income | $ 14,129 | $ 14,707 | $ 5,146 | $ 8,976 | $ 2,273 | $ 9,580 | $ 9,616 | $ 6,113 | $ 6,517 | $ 9,675 | $ 3,324 | $ 3,787 | $ 42,958 | $ 27,582 | $ 23,303 |
Other comprehensive income (loss): | |||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | 5,567 | 1,717 | (6,697) | ||||||||||||
Other comprehensive income (loss) before tax | 5,567 | 1,717 | (6,697) | ||||||||||||
Income tax (expense) benefit related to items of other comprehensive income | (1,629) | (707) | 1,961 | ||||||||||||
Other comprehensive income (loss) | 3,938 | 1,010 | (4,736) | ||||||||||||
Less: Reclassification adjustment for gains (loss) included in net earnings | 1,307 | ||||||||||||||
Income tax (expense) benefit related to reclassification adjustment | (512) | ||||||||||||||
Reclassification adjustment for gains included in net earnings, net of tax | 795 | ||||||||||||||
Other comprehensive income (loss), net of tax | 3,938 | 1,010 | (3,941) | ||||||||||||
Total comprehensive income | $ 46,896 | $ 28,592 | $ 19,362 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2015 | $ 259,736 | $ 16 | $ 227,262 | $ 33,762 | $ (1,304) |
Beginning balance (in shares) at Dec. 31, 2015 | 31,961,052 | ||||
Net income | 23,303 | 23,303 | |||
Other comprehensive income (loss) | (3,941) | (3,941) | |||
Stock based compensation | 899 | 899 | |||
Exercise of options | $ 4,267 | 4,267 | |||
Exercise of options (in shares) | 690,592 | 690,592 | |||
Issuance/Vesting of restricted stock (in shares) | 67,988 | ||||
Ending balance at Dec. 31, 2016 | $ 284,264 | $ 16 | 232,428 | 57,065 | (5,245) |
Ending balance (in shares) at Dec. 31, 2016 | 32,719,632 | ||||
Effect of stock split | $ 17 | (17) | |||
Net income | 27,582 | 27,582 | |||
Other comprehensive income (loss) | 1,010 | 1,010 | |||
Reclassification of Stranded Tax Effects | 856 | (856) | |||
Stock based compensation | 1,838 | 1,838 | |||
Exercise of options | $ 5,547 | $ 1 | 5,546 | ||
Exercise of options (in shares) | 1,072,000 | 1,072,000 | |||
Issuance/Vesting of restricted stock (in shares) | 78,005 | ||||
Stock issued in acquisition | $ 51,871 | $ 3 | 51,868 | ||
Stock issued in acquisition (in shares) | 2,955,623 | ||||
Capital raise | 22,839 | $ 1 | 22,838 | ||
Capital raise (in shares) | 1,382,506 | ||||
Ending balance at Dec. 31, 2017 | 394,951 | $ 38 | 314,501 | 85,503 | (5,091) |
Ending balance (in shares) at Dec. 31, 2017 | 38,207,766 | ||||
Net income | 42,958 | 42,958 | |||
Other comprehensive income (loss) | 3,938 | 3,938 | |||
Stock based compensation | 2,637 | 2,637 | |||
Exercise of options | $ 2,356 | 2,356 | |||
Exercise of options (in shares) | 308,334 | 308,334 | |||
Issuance/Vesting of restricted stock (in shares) | 154,884 | ||||
Stock issued in acquisition | $ 101,499 | $ 5 | 101,494 | ||
Stock issued in acquisition (in shares) | 5,234,593 | ||||
Capital raise | 11,342 | $ 1 | 11,341 | ||
Capital raise (in shares) | 625,730 | ||||
Stock repurchase | (497) | (497) | |||
Stock repurchase (in shares) | (35,300) | ||||
Ending balance at Dec. 31, 2018 | $ 559,184 | $ 44 | $ 431,832 | $ 128,461 | $ (1,153) |
Ending balance (in shares) at Dec. 31, 2018 | 44,496,007 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||
Net income | $ 42,958 | $ 27,582 | $ 23,303 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 4,220 | 2,762 | 4,681 |
Stock–based compensation expense | 2,637 | 1,838 | 899 |
Depreciation and amortization | 2,751 | 2,384 | 1,858 |
Deferred tax expense | 1,192 | 4,511 | 1,337 |
Amortization of core deposit intangible | 2,043 | 394 | 239 |
Amortization of mortgage servicing rights | 1,076 | 555 | 184 |
Amortization of premiums on purchased loans - net | (6,689) | (586) | (1,200) |
Gain on sale of REO | (104) | ||
Gain on sale of loans | (419) | (7,029) | (7,812) |
Gain on sale of securities | (1,307) | ||
Loss from hedging activities | 354 | ||
Increase in other assets | (3,578) | (1,541) | (2,089) |
Increase (decrease) in accounts payable and other liabilities | 4,436 | 7,106 | (323) |
Net cash provided by operating activities | 50,981 | 37,872 | 19,770 |
Cash Flows from Investing Activities: | |||
Net increase in loans | (1,129,231) | (1,238,225) | (1,348,286) |
Proceeds from sale of loans | 674,019 | 457,498 | 311,709 |
Proceeds from sale of REO | 2,577 | 438 | 4,652 |
Purchase of premises and equipment | (2,710) | (2,235) | (5,935) |
Recovery of allowance for loan losses | 569 | ||
Purchases of AFS securities | (365,519) | (29,338) | (145,614) |
Proceeds from sale of securities | 9,982 | 62,174 | 104,146 |
Maturities of AFS securities | 81,199 | 73,593 | 91,128 |
Purchase of REO property | (404) | ||
Cash in from merger | 47,582 | 91,018 | |
Sale (purchase) of FHLB stock, net | 1,982 | 16,500 | (12,258) |
Net cash used in investing activities | (679,550) | (568,981) | (1,000,458) |
Cash Flows from Financing Activities: | |||
Increase in deposits | 611,856 | 605,171 | 904,619 |
Net (decrease) increase in FHLB advances | (4,570) | (622,000) | 454,000 |
Line of credit net change – borrowings (paydowns), net | (45,000) | 50,000 | |
Payoff of acquired debt | (8,000) | ||
Proceeds from the sale and issuance of stock, net | 13,698 | 28,386 | 4,267 |
Repurchase of stock | (497) | ||
Net cash provided by financing activities | 575,487 | 53,557 | 1,362,886 |
Increase (decrease) in cash and cash equivalents | (53,082) | (477,552) | 382,198 |
Cash and cash equivalents at beginning of year | 120,394 | 597,946 | 215,748 |
Cash and cash equivalents at end of year | 67,312 | 120,394 | 597,946 |
Supplemental disclosures of cash flow information: | |||
Interest | 46,043 | 21,704 | 10,695 |
Income taxes | 16,646 | 14,655 | 17,156 |
Noncash transactions: | |||
Transfer of loans to loans held for sale | 1,027,478 | 357,462 | 519,721 |
Mortgage servicing rights from loan sales | 2,646 | 3,232 | 2,190 |
Chargeoffs (recoveries) against allowance for loans losses | $ 4,189 | (238) | (119) |
Transfer from loans to REO | $ 1,520 | $ 2,350 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business First Foundation Inc. (“FFI”) is a financial services holding company whose operations are conducted through its wholly owned subsidiaries: First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB” or the “Bank”) and the wholly owned subsidiaries of FFB, First Foundation Insurance Services (“FFIS”) and Blue Moon Management, LLC (collectively the “Company”). FFI also has two inactive wholly owned subsidiaries, First Foundation Consulting (“FFC”) and First Foundation Advisors, LLC (“FFA LLC”). In addition, FFA has set up a limited liability company, which is not included in these consolidated financial statements, as a private investment fund to provide an investment vehicle for its clients. FFI is incorporated in the state of Delaware. The corporate headquarters for all of the companies is located in Irvine, California. The Company has offices in California, Nevada, and Hawaii. FFA, established in 1985 and incorporated in the state of California, began operating in 1990 as a fee-based registered investment advisor. FFA provides (i) investment management and financial planning services for high net-worth individuals, retirement plans, charitable institutions and private foundations; (ii) financial, investment and economic advisory and related services to high net-worth individuals and their families, family-owned businesses, and other related organizations; and (iii) support services involving the processing and transmission of financial and economic data for charitable organizations. At the end of 2018, these services were provided to approximately 1,500 clients, primarily located in Southern California, with an aggregate of $3.9 billion of assets under management. The Bank commenced operations in 2007, is incorporated in the state of California and currently operates in California, Nevada, and in Hawaii. The Bank offers a wide range of deposit instruments including personal and business checking and savings accounts, including interest-bearing negotiable order of withdrawal (“NOW”) accounts, money market accounts, and time certificates of deposit (“CD”) accounts. As a lender, the Bank originates, and retains for its portfolio, loans secured by real estate and commercial loans. Over 90% of the Bank’s loans are to clients located in California. The Bank also offers a wide range of specialized services including trust services, on-line banking, remote deposit capture, merchant credit card services, ATM cards, Visa debit cards, business sweep accounts, and through FFIS, insurance brokerage services. The Bank has a state non-member bank charter and is subject to continued examination by the California Department of Business Oversight and the Federal Deposit Insurance Corporation (“FDIC”). At December 31, 2018, the Company employed 482 employees. Basis of Presentation The consolidated financial statements have been prepared in conformity with U. S. generally accepted accounting standards and prevailing practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses during the reporting periods and related disclosures. Actual results could differ significantly from those estimates. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Variable Interest Entities The Company may have variable interests in Variable Interest Entities (“VIEs”) arising from debt, equity or other monetary interests in an entity, which change with fluctuations in the fair value of the entity's assets. VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of an entity that most significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has sold loans, in 2018, 2016 and 2015, through securitizations sponsored by a government sponsored entity, Freddie Mac, who also provided credit enhancement of the loans through certain guarantee provisions. The Company retained the right to provide servicing for the loans except for special servicing for which an unrelated third party was engaged by the VIE. For the 2016 and 2015 securitizations, the Company acquired the “B” piece of the securitizations, which is structured to absorb any losses from the securitizations, and interest only strips from the securitization. For the 2018 securitization, the Company provides collateral to support its obligation to reimburse for credit losses incurred on loans in the securitization. Because the Company does not act as the special servicer for the VIE and because of the power of Freddie Mac over the VIE that holds the assets from the mortgage loan securitizations, the Company is not the primary beneficiary of the VIE and therefore the VIE is not consolidated. Reclassifications Certain amounts in the 2017 consolidated financial statements have been reclassified to conform to the 2018 presentation. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, due from banks, certificates of deposits with maturities of less than ninety days, investment securities with original maturities of less than ninety days, money market mutual funds and federal funds sold. At times, the Bank maintains cash at major financial institutions in excess of FDIC insured limits. However, as the Bank places these deposits with major well-capitalized financial institutions and monitors the financial condition of these institutions, management believes the risk of loss to be minimal. The Bank maintains most of its excess cash at the Federal Reserve Bank, with well-capitalized correspondent banks or with other depository institutions at amounts less than the FDIC insured limits. At December 31, 2018, included in cash and cash equivalents were $32.8 million in funds held at the Federal Reserve Bank. Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. The Bank was in compliance with its reserve requirements as of December 31, 2018. Certificates of Deposit From time to time, the Company may invest funds with other financial institutions through certificates of deposit. Certificates of deposit with maturities of less than ninety days are included as cash and cash equivalents. Certificates of deposit are carried at cost. Investment Securities Investment securities for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investments not classified as trading securities nor as held-to-maturity securities are classified as available-for-sale securities and recorded at fair value. Unrealized gains or losses on available-for-sale securities are excluded from net income and reported as an amount net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Premiums or discounts on held-to-maturity and available-for-sale securities are amortized or accreted into income using the interest method. Realized gains or losses on sales of held-to-maturity or available-for-sale securities are recorded using the specific identification method. Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are considered other-than-temporary impairment (“OTTI”) result in write-downs of the individual securities to their fair value. The credit component of any OTTI related write-downs is charged against earnings. Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: OTTI related to credit loss, which must be recognized in the income statement and; OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Company compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. Loan Origination Fees and Costs Net loan origination fees and direct costs associated with lending are deferred and amortized to interest income as an adjustment to yield over the respective lives of the loans using the interest method. The amortization of deferred fees and costs is discontinued on loans that are placed on nonaccrual status. When a loan is paid off, any unamortized net loan origination fees are recognized in interest income. Loans Held for Investment Loans held for investment are reported at the principal amount outstanding, net of cumulative chargeoffs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Interest on loans is accrued and recognized as interest income at the contractual rate of interest. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or payoff. If subsequent changes occur, the Company may change its intent to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value. Loans Held for Sale Loans designated for sale through securitization or in the secondary market are classified as loans held for sale. Loans held for sale are accounted for at the lower of amortized cost or fair value. The fair value of loans held for sale is generally based on observable market prices from other loans in the secondary market that have similar collateral, credit, and interest rate characteristics. If quoted market prices are not readily available, the Company may consider other observable market data such as dealer quotes for similar loans or forward sale commitments. In certain cases, the fair value may be based on a discounted cash flow model. Related gains and losses are recognized in net gain on mortgage loan origination and sale activities. Direct loan origination costs and fees for loans classified as held for sale are deferred at origination and recognized in earnings at the time of sale. Nonaccrual Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that are well secured and in the collection process may be maintained on accrual status, even if they are 90 days or more past due. Purchased Credit Impaired Loans The Company may purchase individual loans and groups of loans which have shown evidence of credit deterioration and are considered credit impaired. Purchased credit impaired loans are recorded at the amount paid and there is no carryover of the seller’s allowance for loan losses. Purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded by an increase in the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Provisions for loan losses are charged to operations based on management’s evaluation of the estimated losses in its loan portfolio. The major factors considered in evaluating losses are historical charge-off experience, delinquency rates, local and national economic conditions, the borrower’s ability to repay the loan and timing of repayments, and the value of any related collateral. Management’s estimate of fair value of the collateral considers current and anticipated future real estate market conditions, thereby causing these estimates to be particularly susceptible to changes that could result in a material adjustment to results of operations in the future. Recovery of the carrying value of such loans and related real estate is dependent, to a great extent, on economic, operating and other conditions that may be beyond the Bank’s control. The Bank’s primary regulatory agencies periodically review the allowance for loan losses and such agencies may require the Bank to recognize additions to the allowance based on information and factors available to them at the time of their examinations. Accordingly, no assurance can be given that the Bank will not recognize additional provisions for loan losses with respect to its loan portfolio. The allowance consists of specific and general reserves. Specific reserves relate to loans that are individually classified as impaired. Loan losses are charged against the allowance when management believes a loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The Bank considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Bank bases the measurement of loan impairment using either the present value of the expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the loan’s collateral properties. Impairment losses are included in the allowance for loan losses through a charge to provision for loan losses. Adjustments to impairment losses due to changes in the fair value of impaired loans’ collateral properties are included in the provision for loan losses. The Bank’s impaired loans include nonaccrual loans (excluding those collectively reviewed for impairment), certain restructured loans and certain performing loans less than ninety days delinquent (“other impaired loans”) that the Bank believes will likely not be collected in accordance with contractual terms of the loans. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are generally considered troubled debt restructurings and classified as impaired. Commercial loans and loans secured by multifamily and commercial real estate are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Bank determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. General reserves cover non-impaired loans and are based on historical loss rates for each portfolio segment, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. Because the Bank has not experienced any meaningful amount of losses in any of its current portfolio segments, the Bank calculates the historical loss rates on industry data, specifically loss rates published by the FDIC. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in economic conditions, changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and other relevant staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit and the effect of other external factors such as competition and legal and regulatory requirements. Portfolio segments identified by the Bank include loans secured by residential real estate, including multifamily and single family properties, loans secured by commercial real estate, loans secured by vacant land and construction loans, commercial and industrial loans and consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans and debt-to income, collateral type and loan-to-value ratios for consumer loans. Financial Instruments In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Real Estate Owned REO represents the collateral acquired through foreclosure in full or partial satisfaction of the related loan. REO is recorded at the fair value less estimated selling costs at the date of foreclosure. Any write-down at the date of transfer is charged to the allowance for loan losses. The recognition of gains or losses on sales of REO is dependent upon various factors relating to the nature of the property being sold and the terms of sale. REO values are reviewed on an ongoing basis and any decline in value is recognized as foreclosed asset expense in the current period, as are the net operating results from these assets. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization, which is charged to expense on a straight-line basis over the estimated useful lives of 3 to 10 years. Premises under leasehold improvements are amortized on a straight-line basis over the term of the lease or the estimated useful life of the improvements, whichever is shorter. Expenditures for major renewals and betterments of premises and equipment are capitalized and those for maintenance and repairs are charged to expense as incurred. A valuation allowance is established for any impaired long-lived assets. The Company did not have impaired long-lived assets as of December 31, 2018 or 2017. Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank (“FHLB”), the Bank is required to purchase FHLB stock in accordance with its advances, securities and deposit agreement. This stock, which is carried at cost, may be redeemed at par value. However, there are substantial restrictions regarding redemption and the Bank can only receive a full redemption in connection with the Bank surrendering its FHLB membership. At December 31, 2018 and 2017, the Bank held $20.3 million and $19.1 million of FHLB stock, respectively. The Company does not believe that this stock is currently impaired and no adjustments to its carrying value have been recorded. Mortgage Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. As of December 31, 2018 and 2017, no impairment has been recorded. Servicing fee income, which is reported on the income statement as other income , Goodwill Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of net identifiable assets acquired. Subsequent to initial recognition, the Company will test goodwill for impairment on an annual basis by comparing the fair value of the reporting unit to its carrying amount. The goodwill recorded by the Company was recognized from the acquisition of Pacific Rim Bank in June in 2015, the acquisition of Community 1st Bancorp and its wholly owned subsidiary, Community 1st Bank in November of 2017, and the acquisition of PBB Bancorp and its wholly-owned subsidiary, Pacific Business Bank in June of 2018, and was not considered impaired at December 31, 2018. Other Intangible Assets Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from 7 to 10 years. At December 31, 2018 and 2017, core deposit intangible assets totaled $11 million and $6.3 million, respectively, and we recognized $2.0 million, $0.4 million and $0.2 million in core deposit intangible amortization expense in 2018, 2017 and 2016, respectively. Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Interest on Loans Interest income is accrued daily on the Company’s outstanding loan balances. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued when reasonable doubt exists as to the full, timely collection of interest or principal and, generally, when a loan becomes contractually past due for ninety days or more with respect to principal or interest. The accrual of interest may be continued on a well-secured loan contractually past due ninety days or more with respect to principal or interest if the loan is in the process of collection or collection of the principal and interest is deemed probable. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period income. Interest on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Accrual of interest is resumed on loans only when, in the judgment of management, the loan is estimated to be fully collectible. The Bank continues to accrue interest on restructured loans since full payment of principal and interest is expected and such loans are performing or are less than ninety days delinquent and, therefore, do not meet the criteria for nonaccrual status. Restructured loans that have been placed on nonaccrual status are returned to accrual status when the remaining loan balance, net of any charge-offs related to the restructure, is estimated to be fully collectible by management and performing in accordance with the applicable loan terms. Wealth management and trust fee income Asset management fees are billed on a monthly or quarterly basis based on the amount of assets under management and the applicable contractual fee percentage. Asset management fees are recognized as revenue in the period in which they are billed and earned. Financial planning fees are due and billed at the completion of the planning project and are recognized as revenue at that time. Service charges on deposit accounts Service charges on deposit accounts represent general service fees for monthly account maintenance and activity or transaction-based fees. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Gains and Losses on Sales of REO The new guidance requires judgment in evaluating if: (a) a commitment on the buyer’s part exists, (b) collection is probable in circumstances where the initial investment is minimal and (c) the buyer has obtained control of the asset, including the significant risks and rewards of the ownership. If there is no commitment on the buyer’s part, collection is not probable or the buyer has not obtained control of the asset, then a gain cannot be recognized. The initial investment requirement for the buyer along with the various methods for profit recognition are no longer applicable. Other non-interest income includes revenue related to mortgage servicing activities and gains on sales of loans, which are not subject to the requirements of ASU 2014-09. Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of stock options, or other equity instruments, based on the grant-date fair value of those awards. This cost is recognized over the period in which an employee is required to provide services in exchange for the award, generally the vesting period. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for stock awards. Marketing Costs The Company expenses marketing costs, including advertising, in the period incurred. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is established if it is “more likely than not” that all or a portion of the deferred tax asset will not be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Changes in unrealized gains and losses on available-for-sale securities and the related tax costs or benefits are the only components of other comprehensive income for the Company. Stock Split On January 18, 2017, the Company completed a two-for-one stock split in the form of a stock dividend. Each stockholder of record at the close of business of January 4, 2017 received one additional share of common stock for every share held. All share and per share amounts included in the financial statements have been adjusted to reflect the effect of this stock split. Earnings Per Share (“EPS”) Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock, which are determined using the treasury stock method. Fair Value Measurement Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. Derivatives and Hedging Activities Derivative instruments and hedging activities are accounted for in accordance with FASB ASC Topic 815, “Derivatives and Hedg |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 2: ACQUISITIONS On June 1, 2018, the Company completed the acquisition of PBB Bancorp and its wholly owned subsidiary Premier Business Bank (collectively “PBB”), through a merger of PBB with and into the Bank, in exchange for 5,234,593 shares of its common stock with a fair value of $19.39 per share. The primary reason for acquiring PBB was to expand our operations in Southern California. On November 10, 2017, the Company completed the acquisition of Community 1st Bancorp and its wholly owned subsidiary, Community 1st Bank (collectively “C1B”), through a merger of C1B with and into the Bank, in exchange for 2,955,623 shares of common stock of FFI with a fair value of $17.55 per share. The primary reason for acquiring C1B was to expand our operations in Northern California. The acquisitions were accounted for under the purchase method of accounting. The acquired assets, assumed liabilities and identifiable intangible assets are recorded at their respective acquisition date fair values. The following table represents the assets acquired and liabilities assumed of PBB as of June 1, 2018 and the fair value adjustments and amounts recorded by the Bank in 2018 under the acquisition method of accounting: PBB Book Value Fair Value Adjustments Fair Value (dollars in thousands) Assets Acquired: Cash and cash equivalents $ 47,582 $ — $ 47,582 Securities AFS 10,072 (90 ) 9,982 Loans, net of deferred fees 537,885 (14,986 ) 522,899 Allowance for loan losses (3,011 ) 3,011 — Premises and equipment, net 3,811 (1,536 ) 2,275 Investment in FHLB stock 3,229 — 3,229 Deferred taxes 1,451 2,398 3,849 REO 934 (109 ) 825 Goodwill and core deposit intangible 634 66,615 67,249 Other assets 6,634 (566 ) 6,068 Total assets acquired $ 609,221 $ 54,737 $ 663,958 Liabilities Assumed: Deposits $ 477,366 $ 219 $ 477,585 Borrowings 79,911 (341 ) 79,570 Accounts payable and other liabilities 5,204 100 5,304 Total liabilities assumed 562,481 (22 ) 562,459 Excess of assets acquired over liabilities assumed 46,740 54,759 101,499 Total $ 609,221 $ 54,737 $ 663,958 Consideration: Stock issued $ 101,499 Goodwill of $61 million, which is not tax deductible, is included in intangible assets in the table above. In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was that of acquired loans. The excess of expected cash flows above the fair value (Level 3 inputs) of the majority of loans will be accreted to interest income over the remaining lives of the loans in accordance with FASB Accounting Standards Codification (“ASC”) 310-20. Certain loans, for which specific credit-related deterioration since origination was identified, are recorded at fair value reflecting the present value of the amounts expected to be collected. Income recognition on these “purchased credit impaired” loans is based on a reasonable expectation about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on nonaccrual status and have no accretable yield. All purchased credit impaired loans were classified as accruing loans as of and subsequent to the acquisition date. For loans acquired from PBB, the contractual amounts due, expected cash flows to be collected and fair value as of the acquisition date were as follows: (dollars in thousands) Purchased Credit Impaired All Other Acquired Loans Contractual amounts due $ 33,791 $ 697,512 Cash flows not expected to be collected 14,443 7,084 Expected cash flows 19,348 690,428 Interest component of expected cash flows 1,887 184,990 Fair value of acquired loans $ 17,461 $ 505,438 In accordance with generally accepted accounting principles there was no carryover of the allowance for loan losses that had been previously recorded by PBB. The Company recorded a deferred income tax asset of $3.8 million related to PBB’s operating loss carry-forward and other tax attributes of PBB, along with the effects of fair value adjustments resulting from applying the purchase method of accounting. The fair value of savings and transaction deposit accounts acquired from PBB were assumed to approximate their carrying value as these accounts have no stated maturity and are payable on demand. Certificates of deposit accounts were valued by comparing the contractual cost of the portfolio to an identical portfolio bearing current market rates (Level 2 inputs). The portfolio was segregated into pools based on remaining maturity. For each pool, the projected cash flows from maturing certificates were then calculated based on contractual rates and prevailing market rates. The valuation adjustment for each pool is equal to the present value of the difference of these two cash flows, discounted at the assumed market rate for a certificate with a corresponding maturity. This valuation adjustment will be accreted to reduce interest expense over the remaining maturities of the respective pools. The Company also recorded a core deposit intangible, which represents the value of the deposit relationships acquired from PBB, of $6.7 million. The core deposit intangible will be amortized over a period of 7 years. Pro Forma Information (unaudited) The following table presents unaudited pro forma information as if the (i) acquisition of PBB had occurred on January 1, 2018, January 1, 2017 and January 1, 2016, for 2018, 2017 and 2016, respectively, after giving effect to certain adjustments, and (ii) the acquisition of C1B had occurred on January 1, 2017 and January 1, 2016, for 2017 and 2016, after giving effect to certain adjustments. The unaudited pro forma information for these periods includes adjustments for interest income on loans acquired, amortization of intangibles arising from the transaction, adjustments for interest expense on deposits acquired, and the related income tax effects of all these items and the income tax costs or benefits derived from the income or loss before taxes of PBB and C1B. The net effect of these pro forma adjustments were increases of $9.6 million, $3.0 million and $1.4 million in net income for 2018, 2017 and 2016, respectively. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates. 2018 2017 2016 (dollars in thousands) Net interest income $ 167,099 $ 149,650 $ 120,734 Provision for loan losses 4,220 3,472 5,216 Noninterest income 36,538 41,420 38,693 Noninterest expenses 130,702 124,838 103,478 Income before taxes 68,715 62,760 50,733 Taxes on income 19,412 28,284 19,138 Net income $ 49,303 $ 34,476 $ 31,594 Net income per share: Basic $ 1.11 $ 0.82 $ 0.78 Diluted $ 1.10 $ 0.80 $ 0.76 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 3: FAIR VALUE Assets Measured at Fair Value on a Recurring Basis F air value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Current accounting guidance establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect the Company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. Securities available for sale and effective with the adoption of ASU 2016-01 on January 1, 2018, investments in equity securities and interest rate swaps, are measured at fair value on a recurring basis depending upon whether the inputs are Level 1, 2 or 3 as described above. The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurement Level Total Level 1 Level 2 Level 3 (dollars in thousands) December 31, 2018: Investment securities available for sale Agency mortgage-backed securities $ 721,669 — 356,441 365,228 Corporate bonds 54,344 — 54,344 — Beneficial interest – FHLMC securitizations 32,086 — — 32,086 Other 1,470 1,470 — — Investment in equity securities 352 352 — — Total assets at fair value on a recurring basis $ 809,921 $ 1,822 $ 410,785 $ 397,314 Derivatives: Interest rate swaps 5,175 — 5,175 — December 31, 2017: Investment securities available for sale Agency mortgage-backed securities $ 464,019 — 464,019 — Corporate bonds 19,000 — 19,000 — Beneficial interest – FHLMC securitizations 35,852 — — 35,852 Other 493 493 — — Investment in equity securities 158 158 — — Total assets at fair value on a recurring basis $ 519,522 $ 651 $ 483,019 $ 35,852 The decrease in level 3 assets from December 31, 2017 was due to Beneficial interest – FHLMC securitization paydowns. Assets Measured at Fair Value on a Nonrecurring Basis From time to time, we may be required to measure at fair value other assets on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Impaired Loans . ASC 820-10 applies to loans measured for impairment in accordance with ASC 310-10, “Accounting by Creditors for Impairment of a Loan”, at the fair value of the loan’s collateral (if the loan is collateral dependent) less estimated selling costs. When the fair value of the collateral is based on an observable market price or a current appraised value, we measure the impaired loan at nonrecurring Level 2. When an appraised value is not available, or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price or a discounted cash flow has been used to determine the fair value, we measure the impaired loan at nonrecurring Level 3. The total collateral dependent impaired Level 3 loans were $12.8 million and $13.4 million at December 31, 2018 and December 31, 2017, respectively. There were no specific reserves related to these loans at December 31, 2018 and December 31, 2017. Real Estate Owned . The fair value of real estate owned is based on external appraised values that include adjustments for estimated selling costs and assumptions of market conditions that are not directly observable, resulting in a Level 3 classification. As of December 31, 2018 and 2017, the fair value of real estate owned was $0.8 million and $2.9 million, respectively. Mortgage Servicing Rights. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income, resulting in a Level 3 classification. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Fair Value of Financial Instruments FASB ASC 825, “Disclosures about Fair Value of Financial Instruments” requires disclosure of the fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate such value. The methodologies for estimating the fair value of financial assets and financial liabilities measured at fair value on a recurring and non-recurring basis are discussed above. The estimated fair value amounts have been determined by management using available market information and appropriate valuation methodologies, are based on the exit price notion set forth by ASU 2016-1. In cases where quoted market prices are not available, fair values are based on estimates using present value or other market value techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The aggregate fair value amounts presented below do not represent the underlying value of the Company. Fair value estimates are made at a discrete point in time based on relevant market information and other information about the financial instruments. Because no active market exists for a significant portion of our financial instruments, fair value estimates are based in large part on judgments we make primarily regarding current economic conditions, risk characteristics of various financial instruments, prepayment rates, and future expected loss experience. These estimates are subjective in nature and invariably involve some inherent uncertainties. Additionally, unexpected changes in events or circumstances can occur that could require us to make changes to our assumptions and which, in turn, could significantly affect and require us to make changes to our previous estimates of fair value. In addition, the fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of existing and anticipated future customer relationships and the value of assets and liabilities that are not considered financial instruments, such as premises and equipment and other real estate owned. The following methods and assumptions were used to estimate the fair value of financial instruments. Cash and Cash Equivalents . The fair value of cash and cash equivalents approximates its carrying value. Interest-Bearing Deposits with Financial Institutions . The fair values of interest-bearing deposits maturing within ninety days approximate their carrying values. Investment Securities Available for Sale . Investment securities available-for-sale are measured at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. When a market is illiquid or there is a lack of transparency around the inputs to valuation, the securities are classified as Level 3 and reliance is placed upon internally developed models, and management judgment and evaluation for valuation. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as level 3 include beneficial interests – FHLMC securitization. Significant assumptions in the valuation of these Level 3 securities as of December 31, 2018 included a prepayment rate of 15% and discount rates ranging from 4.0% to 10%. Federal Home Loan Bank Stock. The Bank is a member of the Federal Home Loan Bank (the “FHLB”). As a member, we are required to own stock of the FHLB, the amount of which is based primarily on the level of our borrowings from this institution. The fair value of the stock is equal to the carrying amount, is classified as restricted securities and is periodically evaluated for impairment based on our assessment of the ultimate recoverability of our investments in that stock. Any cash or stock dividends paid to us on such stock are reported as income. Loans held for sale. The fair value of loans held for sale is determined using secondary market pricing. Loans, other than impaired loans . The fair value for loans with variable interest rates is the carrying amount. The fair value of fixed rate loans is derived by calculating the discounted value of future cash flows expected to be received by the various homogeneous categories of loans. All loans have been adjusted to reflect changes in credit risk. Deposits . The fair value of demand deposits, savings deposits, and money market deposits is defined as the amounts payable on demand. The fair value of fixed maturity certificates of deposit is estimated based on the discounted value of the future cash flows expected to be paid on the deposits. Borrowings . The fair value of borrowings is the carrying value of overnight FHLB advances that approximate fair value because of the short-term maturity of this instrument, resulting in a Level 2 classification. The fair value of term borrowings is derived by calculating the discounted value of future cash flows expected to be paid out by the Company. Interest rate swaps . Interest rate swaps are reported at an estimated fair value utilizing Level 2 inputs including LIBOR rates from overnight to one year and U.S. swap rates from one year to thirty years. The following table sets forth the estimated fair values and related carrying amounts of our financial instruments as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total December 31, 2018: Assets: Cash and cash equivalents $ 67,312 $ 67,312 $ — $ — $ 67,312 Securities AFS 809,569 1,470 410,785 397,314 809,569 Loans held for sale 507,643 — 517,273 — 517,273 Loans, net 4,274,669 — — 4,408,788 4,408,788 Investment in FHLB stock 20,307 — 20,307 — 20,307 Investment in equity securities 352 352 — — 352 Liabilities: Deposits 4,532,968 2,582,758 1,943,635 — 4,526,393 Borrowings 708,000 — 703,000 5,000 708,000 Interest rate swaps 5,175 — 5,175 — 5,175 December 31, 2017: Assets: Cash and cash equivalents $ 120,394 $ 120,394 $ — $ — $ 120,394 Securities AFS 519,364 493 483,019 35,852 519,364 Loans held for sale 154,380 — 155,345 — 154,345 Loans, net 3,645,327 — — 3,617,060 3,617,060 Investment in FHLB stock 19,060 — 19,060 — 19,060 Investment in equity securities 158 158 — — 158 Liabilities: Deposits Borrowings 3,443,527 2,542,730 901,877 — 3,444,607 678,000 — 628,000 50,000 678,000 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | NOTE 4: SECURITIES The following table provides a summary of the Company’s AFS securities portfolio at December 31: Amortized Gross Unrealized Estimated (dollars in thousands) Gains Losses 2018: Agency mortgage-backed securities $ 723,597 $ 11,883 $ (13,811 ) $ 721,669 Corporate bonds 54,000 638 (294 ) 54,344 Beneficial interests in FHLMC securitization 32,143 1,756 (1,813 ) 32,086 Other 1,458 15 (3 ) 1,470 Total $ 811,198 $ 14,292 $ (15,921 ) $ 809,569 2017: Agency mortgage-backed securities $ 471,131 $ 287 $ (7,399 ) $ 464,019 Corporate bonds 19,000 — — 19,000 Beneficial interests in FHLMC securitization 35,930 1,811 (1,889 ) 35,852 Other 499 — (6 ) 493 Total $ 526,560 $ 2,098 $ (9,294 ) $ 519,364 US Treasury securities of $0.5 million as of December 31, 2018 that are included in the table above as Other are pledged as collateral to the State of California to meet regulatory requirements related to the Bank’s trust operations. As of December 31, 2018, $79 million of agency mortgage-backed securities are pledged as collateral as support for the Banks’s obligations under a loan sales and securitization agreement entered into in 2018. The table below indicates, as of December 31, 2018, the gross unrealized losses and fair values of our investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Securities with Unrealized Loss at December 31, 2018 (dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Agency mortgage-backed securities $ — $ — $ 387,151 $ (13,811 ) $ 387,151 $ (13,811 ) Corporate bonds 38,706 (294 ) — — 38,706 (294 ) Beneficial interests in FHLMC securitization 429 (11 ) 7,038 (1,802 ) 7,467 (1,813 ) Other — — 497 (3 ) 497 (3 ) Total temporarily impaired securities $ 39,135 $ (305 ) $ 394,686 $ (15,616 ) $ 433,821 $ (15,921 ) Securities with Unrealized Loss at December 31, 2017 (dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Agency mortgage backed securities 158,984 (1,394 ) 259,213 (6,005 ) 418,197 (7,399 ) Beneficial interests in FHLMC securitization — — 8,738 (1,889 ) 8,738 (1,889 ) Other 197 $ (2 ) $ 296 $ (4 ) $ 493 $ (6 ) Total temporarily impaired securities $ 159,181 $ (1,396 ) $ 268,247 $ (7,898 ) $ 427,428 $ (9,294 ) Unrealized losses in agency mortgage backed securities, beneficial interests in FHLMC securitizations, and other securities have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell, it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in discount rates and assumptions regarding future interest rates. The fair value is expected to recover as the bonds approach maturity. The scheduled maturities of securities AFS, other than agency mortgage backed securities, and the related weighted average yield is as follows as of December 31: (dollars in thousands) Less than 1 Through 5 Through After Total 2018 Amortized Cost: Corporate bonds $ — $ — $ 54,000 $ — $ 54,000 Other 500 — 958 — 1,458 Total 500 — 54,958 — 55,458 Weighted average yield 1.03 % — % 5.29 % — % 5.25 % Estimated Fair Value: Corporate bonds $ — $ — $ 54,344 $ — $ 54,344 Other 497 — 973 — 1,470 Total $ 497 $ — $ 55,317 $ — $ 55,814 (dollars in thousands) Less than 1 Through 5 Through After Total 2017 Amortized Cost: Corporate bonds $ — $ — $ 19,000 $ — $ 19,000 Other — 499 — — 499 Total — 499 19,000 — 19,499 Weighted average yield — % 1.03 % 5.24 % — % 5.13 % Estimated Fair Value: Corporate bonds $ — $ — $ 19,000 $ — $ 19,000 Other — 493 — — 493 Total $ — $ 493 $ 19,000 $ — $ 19,493 Agency mortgage backed securities and beneficial interests in FHLMC securitizations are excluded from the above table because such securities are not due at a single maturity date. The weighted average yield of the agency mortgage backed securities and beneficial interests in FHLMC securitizations as of December 31, 2018 and 2017 was 2.91% and 2.55%, respectively. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | NOTE 5: LOANS The following is a summary of our loans as of December 31: (dollars in thousands) 2018 2017 Recorded investment balance: Loans secured by real estate: Residential properties: Multifamily $ 1,956,935 $ 1,935,429 Single family 904,828 645,816 Total real estate loans secured by residential properties 2,861,763 2,581,245 Commercial properties 869,169 696,748 Land 80,187 37,160 Total real estate loans 3,811,119 3,315,153 Commercial and industrial loans 449,805 310,779 Consumer loans 22,699 29,330 Total loans 4,283,623 3,655,262 Deferred expenses, net 10,046 8,465 Total $ 4,293,669 $ 3,663,727 As of December 31, 2018 and 2017, the principal balances shown above are net of unaccreted discount related to loans acquired in acquisitions of $13.3 million and $4.0 million, respectively. In 2018 and 2017 the Company purchased loans, for which there was, at acquisition, evidence of deterioration in credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of these purchased credit impaired loans is as follows at December 31: (dollars in thousands) 2018 2017 Outstanding principal balance: Loans secured by real estate: Residential properties $ 451 $ — Commercial properties 10,871 1,525 Land 1,089 1,096 Total real estate loans 12,411 2,621 Commercial and industrial loans 1,150 2,774 Consumer loans 10 — Total loans 13,571 5,395 Unaccreted discount on purchased credit impaired loans (6,490 ) (1,638 ) Total $ 7,081 $ 3,757 Accretable yield, or income expected to be collected on purchased credit impaired loans, is as follows at December 31: (dollars in thousands) 2018 2017 Beginning balance $ 850 $ 289 Accretion of income (1,509 ) (108 ) Reclassifications from nonaccretable difference — 66 Acquisitions 1,887 603 Disposals (461 ) — Ending balance $ 767 $ 850 The following table summarizes our delinquent and nonaccrual loans as of December 31: Past Due and Still Accruing Total Past (dollars in thousands) 30–59 Days 60-89 Days 90 Days Nonaccrual Current Total 2018: Real estate loans: Residential properties $ 74 $ — $ 499 $ 651 $ 1,224 $ 2,860,539 $ 2,861,763 Commercial properties 440 117 — 1,607 2,164 867,005 869,169 Land 2,000 — — 697 2,697 77,490 80,187 Commercial and industrial loans 12,541 300 536 8,559 21,936 427,869 449,805 Consumer loans — 7 — 2 9 22,690 22,699 Total $ 15,055 $ 424 $ 1,035 $ 11,516 $ 28,030 $ 4,255,593 $ 4,283,623 Percentage of total loans 0.35 % 0.01 % 0.02 % 0.27 % 0.65 % 2017: Real estate loans: Residential properties $ 78 $ — $ — $ — $ 78 $ 2,581,167 $ 2,581,245 Commercial properties — — 1,320 1,742 3,062 693,686 696,748 Land — — — — — 37,160 37,160 Commercial and industrial loans — — 789 9,617 10,406 300,373 310,779 Consumer loans — — — — — 29,330 29,330 Total $ 78 $ — $ 2,109 $ 11,359 $ 13,546 $ 3,641,716 $ 3,655,262 Percentage of total loans 0.00 % — % 0.06 % 0.31 % 0.37 % The following table presents the composition of TDRs by accrual and nonaccrual status as of: December 31, 2018 December 31, 2017 (dollars in thousands) Accrual Nonaccrual Total Accrual Nonaccrual Total Commercial real estate loans $ 1,264 $ 1,491 $ 2,755 $ — $ 1,598 $ 1,598 Commercial and industrial loans — 2,096 2,096 195 2,698 2,893 Total 1,264 3,587 4,851 195 4,296 4,491 The following tables provide information on loans that were modified as TDRs during the years ended December 31, 2018 and 2017: Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Year ended December 31, 2018 Commercial real estate loans 1 $ 1,264 $ 1,264 $ — Commercial loans 3 2,096 2,096 — Total 4 $ 3,360 $ 3,360 $ — Year ended December 31, 2017 Commercial real estate loans 1 $ 1,598 $ 1,598 $ — Commercial loans 1 218 218 — Total 2 $ 1,816 $ 1,816 $ — All of these loans were classified as a TDR as a result of a reduction in required principal payments and / or an extension of the maturity date of the loans. These loans have been paying in accordance with the terms of their restructure. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Losses | NOTE 6: ALLOWANCE FOR LOAN LOSSES The following is a rollforward of the Bank’s allowance for loan losses for the years ended December 31: (dollars in thousands) Beginning Provision for Charge-offs Recoveries Ending 2018: Real estate loans: Residential properties $ 9,715 $ (499 ) $ — $ — $ 9,216 Commercial properties 4,399 359 (211 ) — 4,547 Land and construction 395 (4 ) — — 391 Commercial and industrial loans 3,624 4,413 (3,978 ) 569 4,628 Consumer loans 267 (49 ) — — 218 Total $ 18,400 $ 4,220 $ (4,189 ) $ 569 $ 19,000 2017: Real estate loans: Residential properties $ 6,669 $ 3,046 $ — $ — $ 9,715 Commercial properties 2,983 1,416 — — 4,399 Land and construction 233 162 — — 395 Commercial and industrial loans 5,227 (1,841 ) — 238 3,624 Consumer loans 288 (21 ) — — 267 Total $ 15,400 $ 2,762 $ — $ 238 $ 18,400 2016: Real estate loans: Residential properties $ 6,799 $ (130 ) $ — $ — $ 6,669 Commercial properties 1,813 1,051 (50 ) 169 2,983 Land and construction 103 130 — — 233 Commercial and industrial loans 1,649 3,578 — — 5,227 Consumer loans 236 52 — — 288 Total $ 10,600 $ 4,681 $ (50 ) $ 169 $ 15,400 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by impairment method as of December 31: Allowance for Loan Losses Unaccreted Evaluated for Impairment Purchased Total (dollars in thousands) Individually Collectively 2018: Allowance for loan losses: Real estate loans: Residential properties $ — $ 9,216 $ — $ 9,216 $ 1,724 Commercial properties 126 4,421 — 4,547 1,779 Land — 391 — 391 84 Commercial and industrial loans 290 4,338 — 4,628 633 Consumer loans — 218 — 218 3 Total $ 416 $ 18,584 $ — $ 19,000 $ 4,223 Loans: Real estate loans: Residential properties $ 651 $ 2,861,112 $ — $ 2,861,763 $ 241,698 Commercial properties 2,871 860,835 5,463 869,169 275,516 Land 697 78,681 809 80,187 41,132 Commercial and industrial loans 8,559 440,437 809 449,805 61,183 Consumer loans — 22,699 — 22,699 366 Total $ 12,778 $ 4,263,764 $ 7,081 $ 4,283,623 $ 619,895 2017: Allowance for loan losses: Real estate loans: Residential properties $ — $ 9,715 $ — $ 9,715 $ 248 Commercial properties — 4,399 — 4,399 1,449 Land — 395 — 395 4 Commercial and industrial loans 909 2,715 — 3,624 1,204 Consumer loans — 267 — 267 100 Total $ 909 $ 17,491 $ — $ 18,400 $ 3,005 Loans: Real estate loans: Residential properties $ — $ 2,581,245 $ — $ 2,581,245 $ 26,605 Commercial properties 4,037 691,632 1,079 696,748 168,057 Land — (837 ) 837 37,160 167 Commercial and industrial loans 9,399 299,539 1,841 310,779 62,849 Consumer loans — 29,330 — 29,330 2,899 Total $ 13,436 $ 3,600,909 $ 3,757 $ 3,655,262 $ 260,577 The column labeled “Unaccreted Credit Component Other Loans” represents the amount of unaccreted credit component discount for the other loans acquired in a business combination, and the stated principal balance of the related loans. The discount is equal to 0.68% and 1.15% of the stated principal balance of these loans as of December 31, 2018 and 2017, respectively. In addition to this unaccreted credit component discount, an additional $0.4 million and $0.2 million of the ALLL was provided for these loans as of December 31, 2018 and 2017, respectively. The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as loans secured by multifamily or commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Bank uses the following definitions for risk ratings: Pass: Loans classified as pass are strong credits with no existing or known potential weaknesses deserving of management’s close attention. Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Impaired: A loan is considered impaired, when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as troubled debt restructurings (“TDRs”) are considered impaired. Purchased credit impaired loans are not considered impaired loans for these purposes. Loans listed as pass include larger non-homogeneous loans not meeting the risk rating definitions above and smaller, homogeneous loans not assessed on an individual basis. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of December 31: (dollars in thousands) Pass Special Substandard Impaired Total 2018: Real estate loans: Residential properties $ 2,857,666 $ 3,446 $ — $ 651 $ 2,861,763 Commercial properties 845,672 13,024 7,602 2,871 869,169 Land 78,681 — 809 697 80,187 Commercial and industrial loans 431,751 7,723 1,772 8,559 449,805 Consumer loans 22,699 — — — 22,699 Total $ 4,236,469 $ 24,193 $ 10,183 $ 12,778 $ 4,283,623 2017: Real estate loans: Residential properties $ 2,578,773 $ 192 $ 2,280 $ — $ 2,581,245 Commercial properties 680,449 6,326 5,936 4,037 696,748 Land 36,321 — 839 — 37,160 Commercial and industrial loans 298,408 865 2,107 9,399 310,779 Consumer loans 29,330 — — — 29,330 Total $ 3,623,281 $ 7,383 $ 11,162 $ 13,436 $ 3,655,262 Impaired loans evaluated individually and any related allowance is as follows as of December 31: With No Allowance Recorded With an Allowance Recorded (dollars in thousands) Unpaid Recorded Unpaid Recorded Related 2018: Real estate loans: Residential properties $ 651 $ 651 $ — $ — $ — Commercial properties 1,607 1,607 1,264 1,264 126 Land 697 697 — — — Commercial and industrial loans 6,543 6,543 2,016 2,016 290 Total $ 9,498 $ 9,498 $ 3,280 $ 3,280 $ 416 2017: Real estate loans: Commercial properties $ 4,037 4,037 $ — $ — $ — Commercial and industrial loans 250 250 9,149 9,149 909 Total $ 4,287 $ 4,287 $ 9,149 $ 9,149 $ 909 The weighted average annualized average balance of the recorded investment for impaired loans, beginning from when the loan became impaired, and any interest income recorded on impaired loans after they became impaired is as follows for the years ending December 31: 2018 2017 2016 (dollars in thousands) Average Interest Average Interest Average Interest Real estate loans: Residential properties $ 276 $ — $ 1,323 $ 20 $ 1,970 $ 14 Commercial properties 3,459 90 2,403 50 2,252 17 Commercial and industrial loans 9,117 — 5,503 5 1,673 20 Consumer loans — — — — 4 — Total $ 12,852 $ 90 $ 9,229 $ 75 $ 5,899 $ 51 There was no interest income recognized on a cash basis in 2018, 2017 or 2016 on impaired loans. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 7: PREMISES AND EQUIPMENT A summary of premises and equipment is as follows at December 31: (dollars in thousands) 2018 2017 Leasehold improvements and artwork $ 7,268 $ 5,107 Information technology equipment 7,031 7,180 Furniture and fixtures 3,286 3,181 Land and auto 805 — Total 18,390 15,468 Accumulated depreciation and amortization (9,245 ) (8,887 ) Net $ 9,145 $ 6,581 |
Real Estate Owned
Real Estate Owned | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
Real Estate Owned | NOTE 8: REAL ESTATE OWNED The activity in our portfolio of REO is as follows during the periods ending December 31: (dollars in thousands) 2018 2017 Beginning balance $ 2,920 $ 1,734 Loans transferred to REO (93 ) 1,520 REO acquired in merger 565 — Dispositions of REO (2,577 ) (334 ) Ending balance $ 815 $ 2,920 |
Loan Sales and Mortgage Servici
Loan Sales and Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2018 | |
Loan Sales And Mortgage Servicing Rights Disclosure [Abstract] | |
Loan Sales and Mortgage Servicing Rights | NOTE 9: LOAN SALES AND MORTGAGE SERVICING RIGHTS In 2018, FFB recognized $0.4 million of gains on the sale of $674 million of multifamily loans through a securitization sponsored by Freddie Mac. In 2017, FFB sold $453 million of multifamily loans to financial institutions and recognized a gain of $7.0 million. In 2016, FFB sold $265 million of multifamily loans sold through a securitization sponsored by Freddie Mac and recognized a gain of $7.2 million. In 2016, FFB also sold $41 million of multifamily loans to financial institutions and recognized a gain of $0.6 million. For the sales of multifamily loans in 2018, 2017, and 2016, FFB retained servicing rights for the majority of these loans and recognized mortgage servicing rights as part of the transactions. As of December 31, 2018, and 2017, mortgage servicing rights were $6.4 million and $4.8 million, respectively and the amount of loans serviced for others totaled $1.3 billion and $745 million at December 31, 2018 and 2017, respectively. Servicing fees collected in 2018, 2017, and 2016 were $ 1.1 million, $0.7 million, and $0.3 million, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | NOTE 10: DEPOSITS The following table summarizes the outstanding balance of deposits and average rates paid thereon at December 31: 2018 2017 (dollars in thousands) Amount Weighted Amount Weighted Demand deposits: Noninterest-bearing $ 1,074,661 — $ 1,097,196 — Interest-bearing 317,380 0.798 % 235,294 0.411 % Money market and savings 1,190,717 1.115 % 1,210,240 0.840 % Certificates of deposits 1,950,210 2.142 % 900,797 1.189 % Total $ 4,532,968 1.270 % $ 3,443,527 0.634 % At December 31, 2018, of the $360 million of certificates of deposits of $250,000 or more, $332 million mature within one year and $28 million mature after one year. Of the $1.6 billion of certificates of deposit of less than $250,000, $1.5 billion mature within one year and $53 million mature after one year. At December 31, 2017, of the $288 million of certificates of deposits of $250,000 or more, $230 million mature within one year and $58 million mature after one year. Of the $613 million of certificates of deposit of less than $250,000, $543 million mature within one year and $70 million mature after one year. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 11: BORROWINGS At December 31, 2018, our borrowings consisted of $703 million of overnight FHLB advances at the Bank and $5 million of borrowings under a company line of credit. At December 31, 2017, our borrowings consisted of $628 million of overnight FHLB advances and $50 million of borrowings under a company line of credit. These FHLB advances were paid in full in the early part of January 2019 and 2018, respectively, and bore interest rates of 2.56% and 1.41%, respectively. At December 31, 2018, the interest rate on the company line of credit was 5.90%. Because the Bank utilizes overnight borrowings, the balance of outstanding borrowings fluctuates on a daily basis. FHLB advances are collateralized by loans secured by multifamily and commercial real estate properties with a carrying value of $3.0 billion as of December 31, 2018. As a matter of practice, the Bank provides substantially all of its qualifying loans as collateral to the FHLB. The Bank’s total borrowing capacity from the FHLB at December 31, 2018 was $2.2 billion. In addition to the $703 million borrowing, the Bank had in place $198 million of letters of credit from the FHLB which are used to meet collateral requirements for borrowings from the State of California and local agencies. During 2017, FFI entered into a loan agreement with an unaffiliated lender that provides for a revolving line of credit for up to $75 million. The loan agreement matures in five years, with an option to extend the maturity date subject to certain conditions, and bears interest at 90 day LIBOR plus 350 basis points (3.50%). We are required to meet certain financial covenants during the term of the loan, including minimum capital levels and limits on classified assets. As of December 31, 2018, FFI was not in compliance with a covenant on this loan agreement that requires the Company to maintain a minimum total risk based capital ratio of 11.00%. At December 31, 2018, FFI had a total risk based capital ratio of 10.99%. The Company’s obligations under the loan agreement are secured by, among other things, a pledge of all of its equity in FFB. The Bank also has $120 million available unsecured fed funds lines, ranging in size from $20 million to $25 million, with five other financial institutions and a $69 million secured line with the Federal Reserve Bank. None of these lines had outstanding borrowings as of December 31, 2018. Combined, the Bank’s unused lines of credit as of December 31, 2018 were $1.5 million. The average daily balance of overnight borrowings outstanding during 2018, 2017 and 2016 was $557 million, $499 million and $507 million, respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | NOTE 12: SHAREHOLDERS’ EQUITY FFI is a holding company and does not have any direct operating activities. Any future cash flow needs of FFI are expected to be met by its existing cash and cash equivalents and dividends from its subsidiaries. The Bank is subject to various laws and regulations that limit the amount of dividends that a bank can pay without obtaining prior approval from bank regulators. Additionally, under the terms of the holding company line of credit agreement, FFI may only declare and pay a dividend if the total amount of dividends and stock repurchases during the current twelve months does not exceed 50% of FFI’s net income for the same twelve month period. As of December 31, 2018, FFI’s cash and cash equivalents totaled $6.7 million. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13: EARNINGS PER SHARE All of the Company’s share and per share computations have been adjusted to reflect the impact of the two-for-one stock split that was effective as of January 18, 2017. The following table sets forth the Company’s earnings per share calculations for the years ended December 31: 2018 2017 2016 (dollars in thousands, except share and per share amounts) Basic Diluted Basic Diluted Basic Diluted Net income $ 42,958 $ 42,958 $ 27,582 $ 27,582 $ 23,303 $ 23,303 Basic common shares outstanding 42,092,361 42,092,361 34,482,630 34,482,630 32,365,800 32,365,800 Effect of options, restricted stock and contingent shares issuable 474,747 848,429 1,106,016 Diluted common shares outstanding 42,567,108 35,331,059 33,471,816 Earnings per share $ 1.02 $ 1.01 $ 0.80 $ 0.78 $ 0.72 $ 0.70 Based on a weighted average basis, options to purchase 6,588 shares of common stock were excluded for 2016 because their effect would have been anti-dilutive. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | NOTE 14: STOCK BASED COMPENSATION In 2007, the Board of Directors of FFI approved two equity incentive plans that provided for the grant of stock options, shares of restricted stock, restricted stock units (“RSUs”), stock bonus awards and performance awards (collectively, “Equity Incentive Awards”) to the Company’s executive officers, other key employees and directors up to 1,300,282 shares of the FFI’s common stock. In 2010, shareholders approved an increase of 580,000 in the number of shares available for issuance under one of these plans. In 2015, shareholders approved a new equity incentive plan whereby: the Company can no longer issue Equity Incentive Awards under the previously approved plans; 750,000 shares of common stock will be available for the grant of Equity Incentive Awards to the Company’s executive officers, other key employees and directors; Equity Incentive Awards that are outstanding under the prior plans will remain outstanding and unchanged and subject to the terms of those Plans; and upon termination, cancellation or forfeiture of any of the Equity Incentive Awards that are outstanding under the prior plans, those shares will be added to the pool of shares available for future grants of Equity Incentive Awards under the plan approved in 2015. The Company recognized stock-based compensation expense of $2.6 million, $1.8 million, and $0.9 million in 2018, 2017, and 2016, respectively. Included in the 2018 amount is $2.6 million of expense related to RSUs. Stock options, when granted, have an exercise price not less than the current market value of the common stock and expire after ten years if not exercised. If applicable, vesting periods are set at the date of grant and the Plans provide for accelerated vesting should a change in control occur. The following table summarizes the activities in the Plans during 2018: (dollars in thousands except Options Granted Weighted Average Weighted Average Aggregate Balance: December 31, 2017 900,884 $ 7.73 Options granted — — Options exercised (308,334 ) 7.64 Options forfeited — — Balance: December 31, 2018 592,550 7.78 2.88 Years $ 3,012 Options exercisable 592,550 $ 7.78 7.78 Years $ 3,012 The intrinsic value of stock options exercised in 2018 was $3.2 million. The following table summarizes the activities in the Plans during 2017: (dollars in thousands except Options Granted Weighted Average Weighted Average Aggregate Balance: December 31, 2016 1,972,884 $ 6.34 Options granted — — Options exercised (1,072,000 ) 5.18 Options forfeited — — Balance: December 31, 2017 900,884 7.73 3.37 Years $ 9,738 Options exercisable 900,884 $ 7.73 3.37 Years $ 9,738 The intrinsic value of stock options exercised in 2017 was $11.7 million. The following table summarizes the activities in the Plans during 2016: (dollars in thousands except Options Granted Weighted Average Weighted Average Aggregate Balance: December 31, 2015 2,716,834 $ 6.35 Options granted — — Options exercised (690,592 ) 6.17 Options forfeited (53,358 ) 9.18 Balance: December 31, 2016 1,972,884 6.34 2.45 Years $ 15,601 Options exercisable 1,945,032 $ 6.30 2.39 Years $ 15,457 The intrinsic value of stock options exercised in 2016 was $3.8 million. The following table provides a summary of the RSUs issued by the Company under its equity incentive plans for the periods ended December 31: 2018 2017 2016 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Balance: January 1 149,766 $ 14.73 117,308 $ 10.19 134,728 $ 9.93 New RSUs 119,438 18.03 110,463 17.62 50,568 11.15 Shares vested and issued (154,884 ) 15.23 (78,005 ) 12.01 (67,988 ) 10.39 RSUs forfeited — — — — — — Balance December 31 114,320 $ 17.51 149,766 $ 14.73 117,308 $ 10.19 The fair value of the shares vested and issued was $2.8 million, $1.3 million and $0.8 million in 2018, 2017 and 2016, respectively. As of December 31, 2018, the Company had $0.5 million of unrecognized compensation costs related to outstanding RSUs, which will be recognized through November, 2022, subject to the related vesting requirements. |
401(k) Profit Sharing Plan
401(k) Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract] | |
401(k) Profit Sharing Plan | NOTE 15: 401(k) PROFIT SHARING PLAN The Company’s employees participate in the Company’s 401(k) profit sharing plan (the “401k Plan”) that covers all employees eighteen years of age or older who have completed three months of employment. Each employee eligible to participate in the 401k Plan may contribute up to 100% of his or her compensation, subject to certain statutory limitations. In 2018, the Company matched 100% of a participant’s contribution up to 3% of a participant’s compensation and an additional 50% of a participant’s contribution up to the next 2% of a participant’s compensation. In 2017 and 2016, the Company matched 50% of a participant’s contribution up to 5% of a participant’s compensation. These employer contributions are subject to the plan’s vesting schedule. The Company contributions of $1.7 million, $0.9 million and $0.7 million were included in Compensation and Benefits for 2018, 2017 and 2016, respectively. The Company may also make an additional profit sharing contribution on behalf of eligible employees. No profit sharing contributions were made in 2018, 2017 or 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 16: INCOME TAXES Taxes on income for 2017, and net deferred tax assets as of December 31, 2017, reflect a $5.4 million adjustment recorded as a result of the enactment of H.R.1, the Tax Cuts and Jobs Act which reduced Company’s applicable Federal tax rate from 35% to 21% effective January 1, 2018. The adjustment resulted in lower net deferred tax assets and higher taxes on income. The Company is subject to federal income tax and California franchise tax. Income tax expense (benefit) was as follows for the years ended December 311: (dollars in thousands) 2018 2017 2016 Current expense: Federal $ 10,168 $ 14,122 $ 10,235 State 5,768 4,384 3,459 Deferred expense (benefit): Federal 919 4,677 1,263 State 273 (166 ) 74 Total $ 17,128 $ 23,017 $ 15,031 The following is a comparison of the federal statutory income tax rates to the Company’s effective income tax rate for the years ended December 31: 2018 2017 2016 (dollars in thousands) Amount Rate Amount Rate Amount Rate Income before taxes $ 60,086 $ 50,599 $ 38,334 Federal tax statutory rate $ 12,618 21.00 % $ 17,710 35.00 % $ 13,417 35.00 % State tax, net of Federal benefit 4,876 8.12 % 3,313 6.55 % 2,510 6.55 % Windfall benefit – exercise of stock options (816 ) (1.36 )% (3,762 ) (7.43) % (1,025) (2.67) % Change in federal rate — — % 5,414 10.70 % — — % Other items, net 450 0.75 % 342 0.68 % 129 0.34 % Effective tax rate $ 17,128 28.51 % $ 23,017 45.49 % $ 15,031 39.22 % Deferred taxes are a result of differences between income tax accounting and generally accepted accounting principles with respect to income tax recognition. The following is a summary of the components of the net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31: (dollars in thousands) 2018 2017 Deferred tax assets (liabilities) Allowance for loan and REO losses $ 4,847 $ 4,741 Operating loss carryforwards 2,918 3,157 State taxes 1,166 921 Stock-based compensation 642 678 Market valuation: Acquired loans and REO 5,695 2,505 Capital activities – mark to market 103 — Accrued vacation 561 418 Organizational expenses 192 179 Core deposit intangible (3,197 ) (1,817 ) Prepaid expenses (680 ) (586 ) Depreciation (672 ) (833 ) Accumulated other comprehensive income 476 2,105 Other 1,200 675 Net deferred tax assets $ 13,251 $ 12,143 As part of the merger with DCB, the Company acquired operating loss carryforwards of $13.4 million. These operating loss carryforwards are subject to limitation under Section 382 of the Internal Revenue Service Code and expire in 2032. As a result, the Company will only be able to utilize operating loss carryforwards of $8.2 million, ratably over a period of 20 years. As part of the merger with PRB, the Company acquired operating loss carryforwards of $3.9 million. These operating loss carryforwards are subject to limitation under Section 382 of the Internal Revenue Service Code and expire in 2035. As part of the mergers with C1B and PBB, the Company acquired operating loss carryforwards of $0.7 and $3.3 million, respectively. These operating loss carryforwards are subject to limitation under Section 382 of the Internal Revenue Service Code and expire in 2037. As of December 31, 2018, the remaining operating loss carryforwards from DCB, PRB, C1B, and PBB available to be utilized by the Company were $10.1 million. The Company has no other operating loss carryforwards. The Company is subject to federal income tax and franchise tax of the state of California. Income tax returns for the periods 2016 through 2018 are open to audit by federal authorities, for the periods 2014 through 2018 by California state authorities, and for 2015 through 2018 by Hawaii state authorities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 17: COMMITMENTS AND CONTINGENCIES Leases The Company leases certain facilities for its corporate offices and branch operations under non-cancelable operating leases that expire through 2026. Lease expense for 2018, 2017, and 2016 was $5.8 million, $5.2 million, and $4.9 million, respectively. Future minimum lease commitments under all non-cancelable operating leases at December 31, 2018 are as follows: (dollars in thousands) Year Ending December 31, 2019 $ 6,075 2020 5,785 2021 5,507 2022 4,573 2023 and after 3,842 Total $ 25,782 Financial Instruments with Off-Balance Sheet Risk In the normal course of business, the Bank is a party to financial instruments with off-balance sheet risk to meet the financing needs of customers and to reduce exposure to fluctuations in interest rates. These financial instruments may include commitments to extend credit and standby and commercial 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. Standby and commercial letters of credit and financial guarantees are conditional commitments issued by the Bank to guaranty the performance of a customer to a third party. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The following table provides the off-balance sheet arrangements of the Bank as of December 31: (dollars in thousands) 2018 2017 Commitments to fund new loans $ 27,688 $ 44,561 Commitments to fund under existing loans, lines of credit 352,148 211,712 Commitments under standby letters of credit 12,001 2,352 Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the counter-party. Collateral held varies but may include deposits, marketable securities, accounts receivable, inventory, property, plant and equipment, motor vehicles and real estate. Litigation From time to time, the Company may become party to various lawsuits, which have arisen in the course of business. While it is not possible to predict with certainty the outcome of such litigation, it is the opinion of management, based in part upon opinions of counsel, that the liability, if any, arising from such lawsuits would not have a material adverse effect on the Company’s financial position or results of operations. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | NOTE 18: DERIVATIVES AND HEDGING ACTIVITIES Derivatives, specifically interest rate swaps, are used by the Company to reduce the risk that significant increases in interest rates may have on the value of loans held for sale. Derivative transactions are measured in terms of notional amount, which is not recorded in the consolidated statements of financial condition. The notional amount is generally not exchanged and is used as the basis for interest and other contractual payments. Derivatives are reported at their respective fair values in other assets or other liabilities on the consolidated balance sheet, with changes in fair value recognized currently in earnings. During the fourth quarter of 2018, we entered into two swap agreements, with combined notional amounts of $500 million, to offset the impact of changes in interest rates on the value of loans held for sale. These swaps were designated as fair value hedges using the last-of-layer method with the interest rate risk component of the loans held for sale designated as the hedged risk. During the second quarter of 2018, we entered into four interest rate swap agreements, with combined notional amounts of $652 million, to mitigate against the effect of increases in interest rates on loans held for sale. These swaps were designated as a non-hedging activities and were closed out in the third quarter of 2018. During 2018, the payment of the difference between the fixed and floating rate of these interest rate swaps resulted in a $0.8 million reduction in loan interest income and the increase in value of these interest rate swaps of $5.9 million was included in gain on sale of loans in 2018. During the second quarter of 2016, we entered into and closed an interest rate swap agreement, with a notional amount of $228 million, to mitigate against the effect of increases in interest rates on an outstanding commitment to sell loans. The decrease in value of this interest rate swap of $2.4 million was recorded in capital market activities under noninterest income in 2016. The following table provides information related to derivatives designated as hedging instruments as of December 31, 2018: Derivative Assets Derivative Liabilities (dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate contracts Other assets $ — Other liabilities $ 5,175 The following table provides the effect of fair value hedge accounting on the consolidated income statement for 2018, including the location and amount of gain or (loss) recognized in income on fair value hedging relationships: (dollars in thousands) Interest Income - Loans Gain or (Loss): Interest contracts: Hedged items $ 4,821 Derivatives designated as hedging instruments 5,175 As of December 31, 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Balance Sheet Line Item Carrying Amount of the Hedged Item Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item (dollars in thousands) Loans held for sale $ 507,643 $ 4,821 These hedges are all designated as hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the relationship. At December 31, 2018, the amortized cost basis of the closed portfolio used in these hedging relationships were $752 million. There were no derivative positions outstanding at December 31, 2017 or December 31, 2016. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 19: RELATED-PARTY TRANSACTIONS Loans to related parties, including directors and executive officers of the Company and their affiliates, were as follows for the periods presented: (dollars in thousands) 2018 2017 Balance, January 1 $ 5,910 $ 5,910 New loans and advances — — Principal payments received (5,910) — Balance, December 31 $ — $ 5,910 Interest earned from loans to related parties was $0.1 million in 2018, $0.3 million in 2017 and $0.3 million in 2016. The Bank held $8.3 million and $5.1 million of deposits from related parties, including directors and executive officers of the Company and their affiliates, as of December 31, 2018 and December 31, 2017, respectively. Interest paid on deposit accounts held by related parties was $11,000 in 2018, $9,000 in 2017 and $3,000 in 2016. As of December 31, 2018, related parties, including directors and executive officers of the Company and their affiliates, held $29.5 million in assets under management with FFA and FFB. In both 2018 and 2017, the Company received $0.1 million in fees related to these assets under management. Two executive officers of FFB have minority interests in an entity which FFB uses for software services, for which FFB paid $0.2 million in 2018, 2017 and 2016. The CEO of the Company is a director of another financial institution that has deposits with the Bank and, in 2018, 2017, and 2016 purchased $52.1 million, $121.9 million and $41.4 million of loans, respectively, from the Bank for which the Bank will continue to provide servicing. The balance of deposits held at the Bank at December 31, 2018 was $20.8 million and the interest paid by the Bank was $0.4 million. The gain on sale of loans in 2018, 2017 and 2016 was $0.2 million, $1.1 million and $0.6 million, respectively. The amount of loans serviced for this financial institution was $205 million at December 31, 2018. In 2013, the Bank participated in a loan to the parent company of this financial institution. This loan was paid off in November 2017. The amount of interest earned on this loan was $0.2 million in each of 2017 and 2016. In 2017, the Bank participated in a sub debt offering from the financial institution for $15 million. The Bank earned $0.8 million and $0.1 million from this investment in 2018 and 2017, respectively. The CEO of the Company serves a director of a real estate investment trust that is an affiliate of an investment fund company for which FFA provides subadvisory services. The amount of AUM managed by FFA under this subadvisory agreement was $277 million and $260 million at December 31, 2018 and December 31, 2017, respectively, and the amount of fees earned by FFA were $0.4 million in 2018, 2017 and 2016. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | FFI and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on FFI and the Bank’s financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of FFI and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Under a new comprehensive capital framework for U.S. banking organizations, which became effective on January 1, 2015, with certain of their provisions phased-in over a several years through January 1, 2019, the Company (on a consolidated basis) and FFB (on a stand-alone basis) are required to meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. Quantitative measures established by the regulators to ensure capital adequacy require FFI and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to assets (as defined). Management believes, as of December 31, 2018 that FFI and the Bank met all capital adequacy requirements. The following table sets forth the capital and capital ratios of FFI (on a consolidated basis) and FFB (on a stand-alone basis) as of the respective dates and as compared to the respective regulatory requirements applicable to them: Actual For Capital To Be Well-Capitalized (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio FFI December 31, 2018 CET1 capital ratio $ 460,600 10.67 % $ 194,179 4.50 % Tier 1 leverage ratio 460,600 8.39 % 219,694 4.00 % Tier 1 risk-based capital ratio 460,600 10.67 % 258,906 6.00 % Total risk-based capital ratio 481,476 11.16 % 345,207 8.00 % December 31, 2017 CET1 capital ratio $ 366,236 11.99 % $ 137,435 4.50 % Tier 1 leverage ratio 366,236 8.44 % 173,514 4.00 % Tier 1 risk-based capital ratio 366,236 11.99 % 183,246 6.00 % Total risk-based capital ratio 385,236 12.61 % 244,328 8.00 % BANK December 31, 2018 CET1 capital ratio $ 453,248 10.51 % $ 194,058 4.50 % $ 280,306 6.50 % Tier 1 leverage ratio 453,248 8.26 % 219,568 4.00 % 274,461 5.00 % Tier 1 risk-based capital ratio 453,248 10.51 % 258,744 6.00 % 344,992 8.00 % Total risk-based capital ratio 474,124 10.99 % 344,992 8.00 % 431,240 10.00 % December 31, 2017 CET1 capital ratio $ 398,709 13.07 % $ 137,290 4.50 % $ 198,308 6.50 % Tier 1 leverage ratio 398,709 9.20 % 173,363 4.00 % 216,703 5.00 % Tier 1 risk-based capital ratio 398,709 13.07 % 183,053 6.00 % 244,071 8.00 % Total risk-based capital ratio 417,709 13.69 % 244,071 8.00 % 305,089 10.00 % As of each of the dates set forth in the above table, the Company exceeded the minimum required capital ratios applicable to it and FFB’s capital ratios exceeded the minimums necessary to qualify as a well-capitalized depository institution under the prompt corrective action regulations. The required ratios for capital adequacy set forth in the above table do not include the additional capital conservation buffer, though each of the Company and FFB maintained capital ratios necessary to satisfy the capital conservation buffer requirements as of the dates indicated. As of December 31, 2018, the amount of capital at FFB in excess of amounts required to be Well Capitalized was $173 million for the CET-1 capital ratio, $179 million for the Tier 1 leverage ratio, $108 million for the Tier 1 risk-based capital ratio and $43 million for the Total risk-based capital ratio. No conditions or events have occurred since December 31, 2018 that we believe have changed FFI’s or FFB’s capital adequacy classifications from those set forth in the above table. If a banking organization does not hold a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements, it will face constraints on dividends, equity repurchases and executive compensation based on the amount of the shortfall. The capital buffer is measured against risk weighted assets and is therefore not applicable to the tier 1 leverage ratio. The implementation of the capital conservation buffer began on January 1, 2016 at 0.625%, and increased by 0.625% on each subsequent January 1, until it reached 2.5% on January 1, 2019. The following table sets forth the minimum capital ratios plus the applicable increment of the capital conservation buffer as of the current year and the fully implemented ratios that took effect on January 1, 2019: 2018 2019 CET-1 to risk-weighted assets 6.375 % 7.000 % Tier 1 capital (i.e., CET-1 plus Additional Tier 1) to risk-weighted assets 7.875 % 8.500 % Total capital (i.e., Tier 1 plus Tier 2) to risk-weighted assets 9.875 % 10.500 % |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Expenses | NOTE 21: OTHER EXPENSES The following items are included in the consolidated income statements as professional services and marketing costs and other expenses for the years ended December 31: (dollars in thousands) 2018 2017 2016 Regulatory assessments $ 3,652 $ 2,677 $ 2,224 Directors’ compensation expenses 596 540 543 Acquisition expenses 3,794 2,640 — |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 22: SEGMENT REPORTING In 2018, 2017, and 2016 the Company had two reportable business segments: Banking (FFB) and Wealth Management (FFA). The results of FFI and any elimination entries are included in the column labeled Other. The reportable segments are determined by products and services offered and the corporate structure. Business segment earnings before taxes are the primary measure of the segment's performance as evaluated by management. Business segment earnings before taxes include direct revenue and expenses of the segment as well as corporate and inter-company cost allocations. Allocations of corporate expenses, such as finance and accounting, data processing and human resources, are calculated based on estimated activity or usage levels. The management accounting process measures the performance of the operating segments based on the Company's management structure and is not necessarily comparable with similar information for other financial services companies. If the management structures and/or the allocation process changes, allocations, transfers and assignments may change. The following tables show key operating results for each of our business segments used to arrive at our consolidated totals for the years ended December 31: (dollars in thousands) Banking Wealth Other Total 2018: Interest income $ 207,306 $ — $ — $ 207,306 Interest expense 49,935 — 1,761 51,696 Net interest income 157,371 — (1,761 ) 155,610 Provision for loan losses 4,220 — — 4,220 Noninterest income 11,322 25,247 (798 ) 35,771 Noninterest expense 100,778 21,670 4,627 127,075 Income (loss) before taxes on income $ 63,695 $ 3,577 $ (7,186 ) $ 60,086 2017: Interest income $ 136,801 $ — $ — $ 136,801 Interest expense 22,530 — 653 23,183 Net interest income 114,271 — (653 ) 113,618 Provision for loan losses 2,762 — — 2,762 Noninterest income 16,016 23,556 (853 ) 38,719 Noninterest expense 73,990 20,469 4,517 98,976 Income (loss) before taxes on income $ 53,535 $ 3,087 $ (6,023 ) $ 50,599 2016: Interest income $ 100,642 $ — $ — $ 100,642 Interest expense 11,193 — — 11,193 Net interest income 89,449 — — 89,449 Provision for loan losses 4,681 — — 4,681 Noninterest income 13,832 21,348 (620 ) 34,560 Noninterest expense 58,422 19,232 3,340 80,994 Income (loss) before taxes on income $ 40,178 $ 2,116 $ (3,960 ) $ 38,334 The following tables show the financial position for each of our business segments, and of FFI which is included in the column labeled Other, and the eliminating entries used to arrive at our consolidated totals at December 31: (dollars in thousands) Banking Wealth Other Eliminations Total 2018: Cash and cash equivalents $ 67,148 $ 4,636 $ 6,728 $ (11,200 ) $ 67,312 Securities AFS 809,569 — — — 809,569 Loans held for sale 507,643 — — — 507,643 Loans, net 4,274,669 — — — 4,274,669 Premises and equipment 8,221 788 136 — 9,145 FHLB Stock 20,307 — — — 20,307 Deferred taxes 12,905 103 243 — 13,251 REO 815 — — — 815 Goodwill and Intangibles 99,482 — — — 99,482 Other assets 35,906 605 555,465 (553,757 ) 38,219 Total assets $ 5,836,665 $ 6,132 $ 562,572 $ (564,957 ) $ 5,840,412 Deposits $ 4,544,168 $ — $ — $ (11,200 ) $ 4,532,968 Borrowings 703,000 — 5,000 — 708,000 Intercompany balances 3,689 467 (4,156 ) — — Other liabilities 34,886 2,830 2,544 — 40,260 Shareholders’ equity 550,922 2,835 559,184 (553,757 ) 559,184 Total liabilities and equity $ 5,836,665 $ 6,132 $ 562,572 $ (564,957 ) $ 5,840,412 2017: Cash and cash equivalents $ 120,261 $ 4,407 $ 12,664 $ (16,938 ) $ 120,394 Securities AFS 519,364 — — — 519,364 Loans held for sale 154,380 — — — 154,380 Loans, net 3,645,327 — — — 3,645,327 Premises and equipment 5,519 926 136 — 6,581 FHLB Stock 19,060 — — — 19,060 Deferred taxes 12,008 172 (37 ) — 12,143 REO 2,920 — — — 2,920 Goodwill and Intangibles 33,576 — — — 33,576 Other assets 25,521 179 431,335 (429,595 ) 27,440 Total assets $ 4,537,936 $ 5,684 $ 444,098 $ (446,533 ) $ 4,541,185 Deposits $ 3,460,465 $ — $ — $ (16,938 ) $ 3,443,527 Borrowings 628,000 — 50,000 — 678,000 Intercompany balances 3,301 643 (3,944 ) — — Other liabilities 18,646 2,970 3,091 — 24,707 Shareholders’ equity 427,524 2,071 394,951 (429,595 ) 394,951 Total liabilities and equity $ 4,537,936 $ 5,684 $ 444,098 $ (446,533 ) $ 4,541,185 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | NOTE 23: QUARTERLY FINANCIAL INFORMATION (Unaudited) (dollars in thousands, First Second Third Fourth Full Year Year Ended December 31, 2018: Interest income $ 43,319 $ 48,498 $ 58,047 $ 57,442 $ 207,306 Interest expense 9,051 12,247 14,321 16,077 51,696 Net interest income 34,268 36,251 43,726 41,365 155,610 Provision for loan losses 1,688 2,450 9 73 4,220 Noninterest income 8,982 6,984 11,104 8,701 35,771 Noninterest expense 28,988 33,982 33,967 30,138 127,075 Income before taxes on income 12,574 6,803 20,854 19,855 60,086 Taxes on income 3,598 1,657 6,147 5,726 17,128 Net income $ 8,976 $ 5,146 $ 14,707 $ 14,129 $ 42,958 Income per share Basic $ 0.23 $ 0.13 $ 0.33 $ 0.32 $ 1.02 Diluted $ 0.23 $ 0.12 $ 0.33 $ 0.31 $ 1.01 Year Ended December 31, 2017: Interest income $ 30,360 $ 33,652 $ 34,878 $ 37,911 $ 136,801 Interest expense 4,302 5,757 6,438 6,686 23,183 Net interest income 26,058 27,895 28,440 31,225 113,618 Provision for loan losses 69 1,092 701 900 2,762 Noninterest income 7,783 9,697 9,863 11,376 38,719 Noninterest expense 24,709 22,213 23,393 28,661 98,976 Income before taxes on income 9,063 14,287 14,209 13,040 50,599 Taxes on income 2,950 4,671 4,629 10,767 23,017 Net income $ 6,113 $ 9,616 $ 9,580 $ 2,273 $ 27,582 Income per share Basic $ 0.19 $ 0.29 $ 0.28 $ 0.06 $ 0.80 Diluted $ 0.18 $ 0.28 $ 0.27 $ 0.06 $ 0.78 Year Ended December 31, 2016: Interest income $ 21,698 $ 24,573 $ 26,004 $ 28,367 $ 100,642 Interest expense 2,337 2,652 2,841 3,363 11,193 Net interest income 19,361 21,921 23,163 25,004 89,449 Provision for loan losses 400 1,250 1,231 1,800 4,681 Noninterest income 6,985 4,910 15,079 7,586 34,560 Noninterest expense 19,417 19,850 21,536 20,191 80,994 Income before taxes on income 6,529 5,731 15,475 10,599 38,334 Taxes on income 2,742 2,407 5,800 4,082 15,031 Net income $ 3,787 $ 3,324 $ 9,675 $ 6,517 $ 23,303 Income per share Basic $ 0.12 $ 0.10 $ 0.30 $ 0.20 $ 0.72 Diluted $ 0.11 $ 0.10 $ 0.29 $ 0.19 $ 0.70 |
Parent Only Financial Statement
Parent Only Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | NOTE 24: PARENT ONLY FINANCIAL STATEMENTS BALANCE SHEETS December 31, (dollars in thousands) 2018 2017 ASSETS Cash and cash equivalents $ 6,728 $ 12,664 Premises and equipment, net 136 136 Deferred taxes 243 (37 ) Investment in subsidiaries 553,757 429,595 Intercompany receivable 4,156 3,944 Other assets 1,708 1,740 Total Assets $ 566,728 $ 448,042 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Borrowings $ 5,000 $ 50,000 Accounts payable and other liabilities 2,544 3,091 Total Liabilities 7,544 53,091 Shareholders’ Equity Common Stock 44 38 Additional paid-in-capital 431,832 314,501 Retained earnings 128,461 85,503 Accumulated other comprehensive income (loss), net of tax (1,153 ) (5,091 ) Total Shareholders’ Equity 559,184 394,951 Total Liabilities and Shareholders’ Equity $ 566,728 $ 448,042 INCOME STATEMENTS For the Year Ended (dollars in thousands) 2018 2017 2016 Interest expense—borrowings $ 1,761 $ 653 $ — Noninterest income: Earnings from investment in subsidiaries 48,153 31,547 25,498 Other income 194 — — Total noninterest income 48,347 31,547 25,498 Noninterest expense: Compensation and benefits 1,395 1,302 971 Occupancy and depreciation 197 197 96 Professional services and marketing costs 2,790 2,741 1,929 Other expenses 1,237 1,130 964 Total noninterest expense 5,619 5,370 3,960 Income before taxes on income 40,967 25,524 21,538 Taxes on income (1,991 ) (2,058 ) (1,765 ) Net income $ 42,958 $ 27,582 $ 23,303 STATEMENTS OF COMPREHENSIVE INCOME For the Year Ended (dollars in thousands) 2018 2017 2016 Net income $ 42,958 $ 27,582 $ 23,303 Other comprehensive income (loss): Unrealized holding gains (losses) on securities arising during the period 5,567 1,717 (6,697 ) Other comprehensive income (loss) before tax 5,567 1,717 (6,697 ) Income tax (expense) benefit related to items of other comprehensive income (1,629 ) (707 ) 2,122 Other comprehensive income (loss) 3,938 1,010 (4,575 ) Less: Reclassification adjustment for gains (loss) included in net earnings — — 1,043 Income tax (expense) benefit related to reclassification adjustment — — (409 ) Reclassification adjustment for gains included in net earnings, net of tax — — 634 Other comprehensive income (loss), net of tax 3,938 1,010 (3,941 ) Total comprehensive income $ 46,896 $ 28,592 $ 19,362 STATEMENTS OF CASH FLOWS For the Year Ended (dollars in thousands) 2018 2017 2016 Cash Flows from Operating Activities: Net income $ 42,958 $ 27,582 $ 23,303 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Earnings from investment in subsidiaries (48,153 ) (31,547 ) (25,498 ) Stock–based compensation expense 65 61 78 Deferred tax liability (benefit) (280 ) (37 ) 296 Increase in other assets 32 (29 ) (1,464 ) Increase (decrease) in accounts payable and other liabilities (547 ) 3,161 (1,102 ) Net cash used in operating activities (5,925 ) (809 ) (4,387 ) Cash Flows from Investing Activities: Investment in subsidiaries — (72,845 ) (40,000 ) Dividend from subsidiary 32,000 2,000 5,000 Purchase of premises and equipment — — (24 ) Net cash provided by (used in) investing activities 32,000 (70,845 ) (35,024 ) Cash Flows from Financing Activities: Proceeds from borrowings — 50,000 — Paydowns of borrowings (45,000 ) — — Proceeds from the sale of stock, net 13,698 28,386 4,267 Repurchase of stock (497 ) — — Intercompany accounts, net decrease (increase) (212 ) (386 ) (689 ) Net cash (used in) provided by financing activities (32,011 ) 78,000 3,578 Increase (decrease) in cash and cash equivalents (5,936 ) 6,346 (35,833 ) Cash and cash equivalents at beginning of year 12,664 6,318 42,151 Cash and cash equivalents at end of year $ 6,728 $ 12,664 $ 6,318 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 25: SUBSEQUENT EVENTS Cash Dividend On January 29, 2019, the Board of Directors of the Company declared an initial quarterly cash dividend of $0.05 per common share to be paid on March 15, 2019 to stockholders of record as of the close of business on March 1, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Business | Business First Foundation Inc. (“FFI”) is a financial services holding company whose operations are conducted through its wholly owned subsidiaries: First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB” or the “Bank”) and the wholly owned subsidiaries of FFB, First Foundation Insurance Services (“FFIS”) and Blue Moon Management, LLC (collectively the “Company”). FFI also has two inactive wholly owned subsidiaries, First Foundation Consulting (“FFC”) and First Foundation Advisors, LLC (“FFA LLC”). In addition, FFA has set up a limited liability company, which is not included in these consolidated financial statements, as a private investment fund to provide an investment vehicle for its clients. FFI is incorporated in the state of Delaware. The corporate headquarters for all of the companies is located in Irvine, California. The Company has offices in California, Nevada, and Hawaii. FFA, established in 1985 and incorporated in the state of California, began operating in 1990 as a fee-based registered investment advisor. FFA provides (i) investment management and financial planning services for high net-worth individuals, retirement plans, charitable institutions and private foundations; (ii) financial, investment and economic advisory and related services to high net-worth individuals and their families, family-owned businesses, and other related organizations; and (iii) support services involving the processing and transmission of financial and economic data for charitable organizations. At the end of 2018, these services were provided to approximately 1,500 clients, primarily located in Southern California, with an aggregate of $3.9 billion of assets under management. The Bank commenced operations in 2007, is incorporated in the state of California and currently operates in California, Nevada, and in Hawaii. The Bank offers a wide range of deposit instruments including personal and business checking and savings accounts, including interest-bearing negotiable order of withdrawal (“NOW”) accounts, money market accounts, and time certificates of deposit (“CD”) accounts. As a lender, the Bank originates, and retains for its portfolio, loans secured by real estate and commercial loans. Over 90% of the Bank’s loans are to clients located in California. The Bank also offers a wide range of specialized services including trust services, on-line banking, remote deposit capture, merchant credit card services, ATM cards, Visa debit cards, business sweep accounts, and through FFIS, insurance brokerage services. The Bank has a state non-member bank charter and is subject to continued examination by the California Department of Business Oversight and the Federal Deposit Insurance Corporation (“FDIC”). At December 31, 2018, the Company employed 482 employees. |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with U. S. generally accepted accounting standards and prevailing practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses during the reporting periods and related disclosures. Actual results could differ significantly from those estimates. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities The Company may have variable interests in Variable Interest Entities (“VIEs”) arising from debt, equity or other monetary interests in an entity, which change with fluctuations in the fair value of the entity's assets. VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of an entity that most significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has sold loans, in 2018, 2016 and 2015, through securitizations sponsored by a government sponsored entity, Freddie Mac, who also provided credit enhancement of the loans through certain guarantee provisions. The Company retained the right to provide servicing for the loans except for special servicing for which an unrelated third party was engaged by the VIE. For the 2016 and 2015 securitizations, the Company acquired the “B” piece of the securitizations, which is structured to absorb any losses from the securitizations, and interest only strips from the securitization. For the 2018 securitization, the Company provides collateral to support its obligation to reimburse for credit losses incurred on loans in the securitization. Because the Company does not act as the special servicer for the VIE and because of the power of Freddie Mac over the VIE that holds the assets from the mortgage loan securitizations, the Company is not the primary beneficiary of the VIE and therefore the VIE is not consolidated. |
Reclassifications | Reclassifications Certain amounts in the 2017 consolidated financial statements have been reclassified to conform to the 2018 presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, due from banks, certificates of deposits with maturities of less than ninety days, investment securities with original maturities of less than ninety days, money market mutual funds and federal funds sold. At times, the Bank maintains cash at major financial institutions in excess of FDIC insured limits. However, as the Bank places these deposits with major well-capitalized financial institutions and monitors the financial condition of these institutions, management believes the risk of loss to be minimal. The Bank maintains most of its excess cash at the Federal Reserve Bank, with well-capitalized correspondent banks or with other depository institutions at amounts less than the FDIC insured limits. At December 31, 2018, included in cash and cash equivalents were $32.8 million in funds held at the Federal Reserve Bank. Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. The Bank was in compliance with its reserve requirements as of December 31, 2018. |
Certificates of Deposits | Certificates of Deposit From time to time, the Company may invest funds with other financial institutions through certificates of deposit. Certificates of deposit with maturities of less than ninety days are included as cash and cash equivalents. Certificates of deposit are carried at cost. |
Investment Securities | Investment Securities Investment securities for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investments not classified as trading securities nor as held-to-maturity securities are classified as available-for-sale securities and recorded at fair value. Unrealized gains or losses on available-for-sale securities are excluded from net income and reported as an amount net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Premiums or discounts on held-to-maturity and available-for-sale securities are amortized or accreted into income using the interest method. Realized gains or losses on sales of held-to-maturity or available-for-sale securities are recorded using the specific identification method. Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are considered other-than-temporary impairment (“OTTI”) result in write-downs of the individual securities to their fair value. The credit component of any OTTI related write-downs is charged against earnings. Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: OTTI related to credit loss, which must be recognized in the income statement and; OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Company compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. |
Loan Origination Fees and Costs | Loan Origination Fees and Costs Net loan origination fees and direct costs associated with lending are deferred and amortized to interest income as an adjustment to yield over the respective lives of the loans using the interest method. The amortization of deferred fees and costs is discontinued on loans that are placed on nonaccrual status. When a loan is paid off, any unamortized net loan origination fees are recognized in interest income. |
Loans Held for Investment | Loans Held for Investment Loans held for investment are reported at the principal amount outstanding, net of cumulative chargeoffs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Interest on loans is accrued and recognized as interest income at the contractual rate of interest. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or payoff. If subsequent changes occur, the Company may change its intent to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value. |
Loans Held for Sale | Loans Held for Sale Loans designated for sale through securitization or in the secondary market are classified as loans held for sale. Loans held for sale are accounted for at the lower of amortized cost or fair value. The fair value of loans held for sale is generally based on observable market prices from other loans in the secondary market that have similar collateral, credit, and interest rate characteristics. If quoted market prices are not readily available, the Company may consider other observable market data such as dealer quotes for similar loans or forward sale commitments. In certain cases, the fair value may be based on a discounted cash flow model. Related gains and losses are recognized in net gain on mortgage loan origination and sale activities. Direct loan origination costs and fees for loans classified as held for sale are deferred at origination and recognized in earnings at the time of sale. |
Nonaccrual Loans | Nonaccrual Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that are well secured and in the collection process may be maintained on accrual status, even if they are 90 days or more past due. |
Purchased Credit Impaired Loans | Purchased Credit Impaired Loans The Company may purchase individual loans and groups of loans which have shown evidence of credit deterioration and are considered credit impaired. Purchased credit impaired loans are recorded at the amount paid and there is no carryover of the seller’s allowance for loan losses. Purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded by an increase in the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Provisions for loan losses are charged to operations based on management’s evaluation of the estimated losses in its loan portfolio. The major factors considered in evaluating losses are historical charge-off experience, delinquency rates, local and national economic conditions, the borrower’s ability to repay the loan and timing of repayments, and the value of any related collateral. Management’s estimate of fair value of the collateral considers current and anticipated future real estate market conditions, thereby causing these estimates to be particularly susceptible to changes that could result in a material adjustment to results of operations in the future. Recovery of the carrying value of such loans and related real estate is dependent, to a great extent, on economic, operating and other conditions that may be beyond the Bank’s control. The Bank’s primary regulatory agencies periodically review the allowance for loan losses and such agencies may require the Bank to recognize additions to the allowance based on information and factors available to them at the time of their examinations. Accordingly, no assurance can be given that the Bank will not recognize additional provisions for loan losses with respect to its loan portfolio. The allowance consists of specific and general reserves. Specific reserves relate to loans that are individually classified as impaired. Loan losses are charged against the allowance when management believes a loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The Bank considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Bank bases the measurement of loan impairment using either the present value of the expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the loan’s collateral properties. Impairment losses are included in the allowance for loan losses through a charge to provision for loan losses. Adjustments to impairment losses due to changes in the fair value of impaired loans’ collateral properties are included in the provision for loan losses. The Bank’s impaired loans include nonaccrual loans (excluding those collectively reviewed for impairment), certain restructured loans and certain performing loans less than ninety days delinquent (“other impaired loans”) that the Bank believes will likely not be collected in accordance with contractual terms of the loans. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are generally considered troubled debt restructurings and classified as impaired. Commercial loans and loans secured by multifamily and commercial real estate are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Bank determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. General reserves cover non-impaired loans and are based on historical loss rates for each portfolio segment, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. Because the Bank has not experienced any meaningful amount of losses in any of its current portfolio segments, the Bank calculates the historical loss rates on industry data, specifically loss rates published by the FDIC. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in economic conditions, changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and other relevant staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit and the effect of other external factors such as competition and legal and regulatory requirements. Portfolio segments identified by the Bank include loans secured by residential real estate, including multifamily and single family properties, loans secured by commercial real estate, loans secured by vacant land and construction loans, commercial and industrial loans and consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans and debt-to income, collateral type and loan-to-value ratios for consumer loans. |
Financial Instruments | Financial Instruments In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Real Estate Owned | Real Estate Owned REO represents the collateral acquired through foreclosure in full or partial satisfaction of the related loan. REO is recorded at the fair value less estimated selling costs at the date of foreclosure. Any write-down at the date of transfer is charged to the allowance for loan losses. The recognition of gains or losses on sales of REO is dependent upon various factors relating to the nature of the property being sold and the terms of sale. REO values are reviewed on an ongoing basis and any decline in value is recognized as foreclosed asset expense in the current period, as are the net operating results from these assets. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization, which is charged to expense on a straight-line basis over the estimated useful lives of 3 to 10 years. Premises under leasehold improvements are amortized on a straight-line basis over the term of the lease or the estimated useful life of the improvements, whichever is shorter. Expenditures for major renewals and betterments of premises and equipment are capitalized and those for maintenance and repairs are charged to expense as incurred. A valuation allowance is established for any impaired long-lived assets. The Company did not have impaired long-lived assets as of December 31, 2018 or 2017. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank (“FHLB”), the Bank is required to purchase FHLB stock in accordance with its advances, securities and deposit agreement. This stock, which is carried at cost, may be redeemed at par value. However, there are substantial restrictions regarding redemption and the Bank can only receive a full redemption in connection with the Bank surrendering its FHLB membership. At December 31, 2018 and 2017, the Bank held $20.3 million and $19.1 million of FHLB stock, respectively. The Company does not believe that this stock is currently impaired and no adjustments to its carrying value have been recorded. |
Mortgage Servicing Rights | Mortgage Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. As of December 31, 2018 and 2017, no impairment has been recorded. Servicing fee income, which is reported on the income statement as other income , |
Goodwill | Goodwill Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of net identifiable assets acquired. Subsequent to initial recognition, the Company will test goodwill for impairment on an annual basis by comparing the fair value of the reporting unit to its carrying amount. The goodwill recorded by the Company was recognized from the acquisition of Pacific Rim Bank in June in 2015, the acquisition of Community 1st Bancorp and its wholly owned subsidiary, Community 1st Bank in November of 2017, and the acquisition of PBB Bancorp and its wholly-owned subsidiary, Pacific Business Bank in June of 2018, and was not considered impaired at December 31, 2018. |
Other Intangible Assets | Other Intangible Assets Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from 7 to 10 years. At December 31, 2018 and 2017, core deposit intangible assets totaled $11 million and $6.3 million, respectively, and we recognized $2.0 million, $0.4 million and $0.2 million in core deposit intangible amortization expense in 2018, 2017 and 2016, respectively. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Interest on Loans Interest income is accrued daily on the Company’s outstanding loan balances. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued when reasonable doubt exists as to the full, timely collection of interest or principal and, generally, when a loan becomes contractually past due for ninety days or more with respect to principal or interest. The accrual of interest may be continued on a well-secured loan contractually past due ninety days or more with respect to principal or interest if the loan is in the process of collection or collection of the principal and interest is deemed probable. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period income. Interest on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Accrual of interest is resumed on loans only when, in the judgment of management, the loan is estimated to be fully collectible. The Bank continues to accrue interest on restructured loans since full payment of principal and interest is expected and such loans are performing or are less than ninety days delinquent and, therefore, do not meet the criteria for nonaccrual status. Restructured loans that have been placed on nonaccrual status are returned to accrual status when the remaining loan balance, net of any charge-offs related to the restructure, is estimated to be fully collectible by management and performing in accordance with the applicable loan terms. Wealth management and trust fee income Asset management fees are billed on a monthly or quarterly basis based on the amount of assets under management and the applicable contractual fee percentage. Asset management fees are recognized as revenue in the period in which they are billed and earned. Financial planning fees are due and billed at the completion of the planning project and are recognized as revenue at that time. Service charges on deposit accounts Service charges on deposit accounts represent general service fees for monthly account maintenance and activity or transaction-based fees. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Gains and Losses on Sales of REO The new guidance requires judgment in evaluating if: (a) a commitment on the buyer’s part exists, (b) collection is probable in circumstances where the initial investment is minimal and (c) the buyer has obtained control of the asset, including the significant risks and rewards of the ownership. If there is no commitment on the buyer’s part, collection is not probable or the buyer has not obtained control of the asset, then a gain cannot be recognized. The initial investment requirement for the buyer along with the various methods for profit recognition are no longer applicable. Other non-interest income includes revenue related to mortgage servicing activities and gains on sales of loans, which are not subject to the requirements of ASU 2014-09. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of stock options, or other equity instruments, based on the grant-date fair value of those awards. This cost is recognized over the period in which an employee is required to provide services in exchange for the award, generally the vesting period. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for stock awards. |
Marketing Costs | Marketing Costs The Company expenses marketing costs, including advertising, in the period incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is established if it is “more likely than not” that all or a portion of the deferred tax asset will not be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Changes in unrealized gains and losses on available-for-sale securities and the related tax costs or benefits are the only components of other comprehensive income for the Company. |
Stock Split | Stock Split On January 18, 2017, the Company completed a two-for-one stock split in the form of a stock dividend. Each stockholder of record at the close of business of January 4, 2017 received one additional share of common stock for every share held. All share and per share amounts included in the financial statements have been adjusted to reflect the effect of this stock split. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock, which are determined using the treasury stock method. |
Fair Value Measurement | Fair Value Measurement Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Derivative instruments and hedging activities are accounted for in accordance with FASB ASC Topic 815, “Derivatives and Hedging.” The fair value of derivative instruments are recognized as either assets or liabilities on the consolidated balance sheet. All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities. For derivative instruments designated as non-hedging activities, the change in fair value is recognized currently in earnings. For derivative instruments designated as hedging activities, a qualitative analysis is performed at inception to determine if the derivative instrument is highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk during the period that the hedge is designated. Subsequently, a qualitative assessment of a hedge’s effectiveness is performed on a quarterly basis. For a fair value hedge, the change in fair value on the hedging instrument is recognized currently in earnings and the change in fair value on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognized currently in earnings. All amounts recognized in earnings are presented in the same income statement line item as the earnings effect of the hedged item. |
New Accounting Pronouncements | New Accounting Pronouncements In November 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses Financial Instruments – Credit Losses (Topic 326) In August 2018, the FASB issued guidance within ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The amendments within ASU 2018-13 remove, modify, and supplement the disclosure requirements for fair value measurements. Disclosure requirements that were removed include: the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additional disclosure requirements include: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. With the exception of the above additional disclosure requirements, which will be applied prospectively, all other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of ASU 2018-13 is not expected to have a significant impact on the Company's consolidated financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases Leases (Topic 842), Targeted Improvements Leases (Topic 842) In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities” In February 2017, the FASB issued ASU 2017-05 “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” In January 2017, the FASB issued ASU “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” In January 2017, the FASB issued ASU “Business Combinations (Topic 805): Clarifying the Definition of a Business” In August 2016, the FASB issued ASU “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In June 2016, the FASB issued ASU “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The amendments in this Update are effective for interim and annual periods beginning after December 15, 2018. On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) The adoption of ASU 2016-16 did not have a material impact on the Company’s Consolidated Financial Statements |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table represents the assets acquired and liabilities assumed of PBB as of June 1, 2018 and the fair value adjustments and amounts recorded by the Bank in 2018 under the acquisition method of accounting: PBB Book Value Fair Value Adjustments Fair Value (dollars in thousands) Assets Acquired: Cash and cash equivalents $ 47,582 $ — $ 47,582 Securities AFS 10,072 (90 ) 9,982 Loans, net of deferred fees 537,885 (14,986 ) 522,899 Allowance for loan losses (3,011 ) 3,011 — Premises and equipment, net 3,811 (1,536 ) 2,275 Investment in FHLB stock 3,229 — 3,229 Deferred taxes 1,451 2,398 3,849 REO 934 (109 ) 825 Goodwill and core deposit intangible 634 66,615 67,249 Other assets 6,634 (566 ) 6,068 Total assets acquired $ 609,221 $ 54,737 $ 663,958 Liabilities Assumed: Deposits $ 477,366 $ 219 $ 477,585 Borrowings 79,911 (341 ) 79,570 Accounts payable and other liabilities 5,204 100 5,304 Total liabilities assumed 562,481 (22 ) 562,459 Excess of assets acquired over liabilities assumed 46,740 54,759 101,499 Total $ 609,221 $ 54,737 $ 663,958 Consideration: Stock issued $ 101,499 |
Schedule of Loans Acquired | For loans acquired from PBB, the contractual amounts due, expected cash flows to be collected and fair value as of the acquisition date were as follows: (dollars in thousands) Purchased Credit Impaired All Other Acquired Loans Contractual amounts due $ 33,791 $ 697,512 Cash flows not expected to be collected 14,443 7,084 Expected cash flows 19,348 690,428 Interest component of expected cash flows 1,887 184,990 Fair value of acquired loans $ 17,461 $ 505,438 |
Pro Forma Summarized Income Statement Data | The following table presents unaudited pro forma information as if the (i) acquisition of PBB had occurred on January 1, 2018, January 1, 2017 and January 1, 2016, for 2018, 2017 and 2016, respectively, after giving effect to certain adjustments, and (ii) the acquisition of C1B had occurred on January 1, 2017 and January 1, 2016, for 2017 and 2016, after giving effect to certain adjustments. The unaudited pro forma information for these periods includes adjustments for interest income on loans acquired, amortization of intangibles arising from the transaction, adjustments for interest expense on deposits acquired, and the related income tax effects of all these items and the income tax costs or benefits derived from the income or loss before taxes of PBB and C1B. The net effect of these pro forma adjustments were increases of $9.6 million, $3.0 million and $1.4 million in net income for 2018, 2017 and 2016, respectively. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates. 2018 2017 2016 (dollars in thousands) Net interest income $ 167,099 $ 149,650 $ 120,734 Provision for loan losses 4,220 3,472 5,216 Noninterest income 36,538 41,420 38,693 Noninterest expenses 130,702 124,838 103,478 Income before taxes 68,715 62,760 50,733 Taxes on income 19,412 28,284 19,138 Net income $ 49,303 $ 34,476 $ 31,594 Net income per share: Basic $ 1.11 $ 0.82 $ 0.78 Diluted $ 1.10 $ 0.80 $ 0.76 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurement Level Total Level 1 Level 2 Level 3 (dollars in thousands) December 31, 2018: Investment securities available for sale Agency mortgage-backed securities $ 721,669 — 356,441 365,228 Corporate bonds 54,344 — 54,344 — Beneficial interest – FHLMC securitizations 32,086 — — 32,086 Other 1,470 1,470 — — Investment in equity securities 352 352 — — Total assets at fair value on a recurring basis $ 809,921 $ 1,822 $ 410,785 $ 397,314 Derivatives: Interest rate swaps 5,175 — 5,175 — December 31, 2017: Investment securities available for sale Agency mortgage-backed securities $ 464,019 — 464,019 — Corporate bonds 19,000 — 19,000 — Beneficial interest – FHLMC securitizations 35,852 — — 35,852 Other 493 493 — — Investment in equity securities 158 158 — — Total assets at fair value on a recurring basis $ 519,522 $ 651 $ 483,019 $ 35,852 |
Carrying Amounts and Estimated Fair Value of Financial Instruments | The following table sets forth the estimated fair values and related carrying amounts of our financial instruments as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total December 31, 2018: Assets: Cash and cash equivalents $ 67,312 $ 67,312 $ — $ — $ 67,312 Securities AFS 809,569 1,470 410,785 397,314 809,569 Loans held for sale 507,643 — 517,273 — 517,273 Loans, net 4,274,669 — — 4,408,788 4,408,788 Investment in FHLB stock 20,307 — 20,307 — 20,307 Investment in equity securities 352 352 — — 352 Liabilities: Deposits 4,532,968 2,582,758 1,943,635 — 4,526,393 Borrowings 708,000 — 703,000 5,000 708,000 Interest rate swaps 5,175 — 5,175 — 5,175 December 31, 2017: Assets: Cash and cash equivalents $ 120,394 $ 120,394 $ — $ — $ 120,394 Securities AFS 519,364 493 483,019 35,852 519,364 Loans held for sale 154,380 — 155,345 — 154,345 Loans, net 3,645,327 — — 3,617,060 3,617,060 Investment in FHLB stock 19,060 — 19,060 — 19,060 Investment in equity securities 158 158 — — 158 Liabilities: Deposits Borrowings 3,443,527 2,542,730 901,877 — 3,444,607 678,000 — 628,000 50,000 678,000 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of AFS Securities Portfolio | The following table provides a summary of the Company’s AFS securities portfolio at December 31: Amortized Gross Unrealized Estimated (dollars in thousands) Gains Losses 2018: Agency mortgage-backed securities $ 723,597 $ 11,883 $ (13,811 ) $ 721,669 Corporate bonds 54,000 638 (294 ) 54,344 Beneficial interests in FHLMC securitization 32,143 1,756 (1,813 ) 32,086 Other 1,458 15 (3 ) 1,470 Total $ 811,198 $ 14,292 $ (15,921 ) $ 809,569 2017: Agency mortgage-backed securities $ 471,131 $ 287 $ (7,399 ) $ 464,019 Corporate bonds 19,000 — — 19,000 Beneficial interests in FHLMC securitization 35,930 1,811 (1,889 ) 35,852 Other 499 — (6 ) 493 Total $ 526,560 $ 2,098 $ (9,294 ) $ 519,364 |
Schedule of Securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time | The table below indicates, as of December 31, 2018, the gross unrealized losses and fair values of our investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Securities with Unrealized Loss at December 31, 2018 (dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Agency mortgage-backed securities $ — $ — $ 387,151 $ (13,811 ) $ 387,151 $ (13,811 ) Corporate bonds 38,706 (294 ) — — 38,706 (294 ) Beneficial interests in FHLMC securitization 429 (11 ) 7,038 (1,802 ) 7,467 (1,813 ) Other — — 497 (3 ) 497 (3 ) Total temporarily impaired securities $ 39,135 $ (305 ) $ 394,686 $ (15,616 ) $ 433,821 $ (15,921 ) Securities with Unrealized Loss at December 31, 2017 (dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Agency mortgage backed securities 158,984 (1,394 ) 259,213 (6,005 ) 418,197 (7,399 ) Beneficial interests in FHLMC securitization — — 8,738 (1,889 ) 8,738 (1,889 ) Other 197 $ (2 ) $ 296 $ (4 ) $ 493 $ (6 ) Total temporarily impaired securities $ 159,181 $ (1,396 ) $ 268,247 $ (7,898 ) $ 427,428 $ (9,294 ) |
Scheduled Maturities of Securities AFS Other than Mortgage Backed Securities and the Related Weighted Average Yield | The scheduled maturities of securities AFS, other than agency mortgage backed securities, and the related weighted average yield is as follows as of December 31: (dollars in thousands) Less than 1 Through 5 Through After Total 2018 Amortized Cost: Corporate bonds $ — $ — $ 54,000 $ — $ 54,000 Other 500 — 958 — 1,458 Total 500 — 54,958 — 55,458 Weighted average yield 1.03 % — % 5.29 % — % 5.25 % Estimated Fair Value: Corporate bonds $ — $ — $ 54,344 $ — $ 54,344 Other 497 — 973 — 1,470 Total $ 497 $ — $ 55,317 $ — $ 55,814 (dollars in thousands) Less than 1 Through 5 Through After Total 2017 Amortized Cost: Corporate bonds $ — $ — $ 19,000 $ — $ 19,000 Other — 499 — — 499 Total — 499 19,000 — 19,499 Weighted average yield — % 1.03 % 5.24 % — % 5.13 % Estimated Fair Value: Corporate bonds $ — $ — $ 19,000 $ — $ 19,000 Other — 493 — — 493 Total $ — $ 493 $ 19,000 $ — $ 19,493 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of Loans | The following is a summary of our loans as of December 31: (dollars in thousands) 2018 2017 Recorded investment balance: Loans secured by real estate: Residential properties: Multifamily $ 1,956,935 $ 1,935,429 Single family 904,828 645,816 Total real estate loans secured by residential properties 2,861,763 2,581,245 Commercial properties 869,169 696,748 Land 80,187 37,160 Total real estate loans 3,811,119 3,315,153 Commercial and industrial loans 449,805 310,779 Consumer loans 22,699 29,330 Total loans 4,283,623 3,655,262 Deferred expenses, net 10,046 8,465 Total $ 4,293,669 $ 3,663,727 |
Carrying Amount of Purchased Credit Impaired Loans | In 2018 and 2017 the Company purchased loans, for which there was, at acquisition, evidence of deterioration in credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of these purchased credit impaired loans is as follows at December 31: (dollars in thousands) 2018 2017 Outstanding principal balance: Loans secured by real estate: Residential properties $ 451 $ — Commercial properties 10,871 1,525 Land 1,089 1,096 Total real estate loans 12,411 2,621 Commercial and industrial loans 1,150 2,774 Consumer loans 10 — Total loans 13,571 5,395 Unaccreted discount on purchased credit impaired loans (6,490 ) (1,638 ) Total $ 7,081 $ 3,757 |
Accretable Yield or Income Expected to be Collected on Purchased Credit Impaired Loans | Accretable yield, or income expected to be collected on purchased credit impaired loans, is as follows at December 31: (dollars in thousands) 2018 2017 Beginning balance $ 850 $ 289 Accretion of income (1,509 ) (108 ) Reclassifications from nonaccretable difference — 66 Acquisitions 1,887 603 Disposals (461 ) — Ending balance $ 767 $ 850 |
Summary of Delinquent and Nonaccrual Loans | The following table summarizes our delinquent and nonaccrual loans as of December 31: Past Due and Still Accruing Total Past (dollars in thousands) 30–59 Days 60-89 Days 90 Days Nonaccrual Current Total 2018: Real estate loans: Residential properties $ 74 $ — $ 499 $ 651 $ 1,224 $ 2,860,539 $ 2,861,763 Commercial properties 440 117 — 1,607 2,164 867,005 869,169 Land 2,000 — — 697 2,697 77,490 80,187 Commercial and industrial loans 12,541 300 536 8,559 21,936 427,869 449,805 Consumer loans — 7 — 2 9 22,690 22,699 Total $ 15,055 $ 424 $ 1,035 $ 11,516 $ 28,030 $ 4,255,593 $ 4,283,623 Percentage of total loans 0.35 % 0.01 % 0.02 % 0.27 % 0.65 % 2017: Real estate loans: Residential properties $ 78 $ — $ — $ — $ 78 $ 2,581,167 $ 2,581,245 Commercial properties — — 1,320 1,742 3,062 693,686 696,748 Land — — — — — 37,160 37,160 Commercial and industrial loans — — 789 9,617 10,406 300,373 310,779 Consumer loans — — — — — 29,330 29,330 Total $ 78 $ — $ 2,109 $ 11,359 $ 13,546 $ 3,641,716 $ 3,655,262 Percentage of total loans 0.00 % — % 0.06 % 0.31 % 0.37 % |
Composition of TDRs by Accrual and Nonaccrual Status | The following table presents the composition of TDRs by accrual and nonaccrual status as of: December 31, 2018 December 31, 2017 (dollars in thousands) Accrual Nonaccrual Total Accrual Nonaccrual Total Commercial real estate loans $ 1,264 $ 1,491 $ 2,755 $ — $ 1,598 $ 1,598 Commercial and industrial loans — 2,096 2,096 195 2,698 2,893 Total 1,264 3,587 4,851 195 4,296 4,491 The following tables provide information on loans that were modified as TDRs during the years ended December 31, 2018 and 2017: Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Year ended December 31, 2018 Commercial real estate loans 1 $ 1,264 $ 1,264 $ — Commercial loans 3 2,096 2,096 — Total 4 $ 3,360 $ 3,360 $ — Year ended December 31, 2017 Commercial real estate loans 1 $ 1,598 $ 1,598 $ — Commercial loans 1 218 218 — Total 2 $ 1,816 $ 1,816 $ — |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Bank's Allowance for Loan Losses | The following is a rollforward of the Bank’s allowance for loan losses for the years ended December 31: (dollars in thousands) Beginning Provision for Charge-offs Recoveries Ending 2018: Real estate loans: Residential properties $ 9,715 $ (499 ) $ — $ — $ 9,216 Commercial properties 4,399 359 (211 ) — 4,547 Land and construction 395 (4 ) — — 391 Commercial and industrial loans 3,624 4,413 (3,978 ) 569 4,628 Consumer loans 267 (49 ) — — 218 Total $ 18,400 $ 4,220 $ (4,189 ) $ 569 $ 19,000 2017: Real estate loans: Residential properties $ 6,669 $ 3,046 $ — $ — $ 9,715 Commercial properties 2,983 1,416 — — 4,399 Land and construction 233 162 — — 395 Commercial and industrial loans 5,227 (1,841 ) — 238 3,624 Consumer loans 288 (21 ) — — 267 Total $ 15,400 $ 2,762 $ — $ 238 $ 18,400 2016: Real estate loans: Residential properties $ 6,799 $ (130 ) $ — $ — $ 6,669 Commercial properties 1,813 1,051 (50 ) 169 2,983 Land and construction 103 130 — — 233 Commercial and industrial loans 1,649 3,578 — — 5,227 Consumer loans 236 52 — — 288 Total $ 10,600 $ 4,681 $ (50 ) $ 169 $ 15,400 |
Balance in Allowance for Loan Losses and Recorded Investment in Loans by Impairment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by impairment method as of December 31: Allowance for Loan Losses Unaccreted Evaluated for Impairment Purchased Total (dollars in thousands) Individually Collectively 2018: Allowance for loan losses: Real estate loans: Residential properties $ — $ 9,216 $ — $ 9,216 $ 1,724 Commercial properties 126 4,421 — 4,547 1,779 Land — 391 — 391 84 Commercial and industrial loans 290 4,338 — 4,628 633 Consumer loans — 218 — 218 3 Total $ 416 $ 18,584 $ — $ 19,000 $ 4,223 Loans: Real estate loans: Residential properties $ 651 $ 2,861,112 $ — $ 2,861,763 $ 241,698 Commercial properties 2,871 860,835 5,463 869,169 275,516 Land 697 78,681 809 80,187 41,132 Commercial and industrial loans 8,559 440,437 809 449,805 61,183 Consumer loans — 22,699 — 22,699 366 Total $ 12,778 $ 4,263,764 $ 7,081 $ 4,283,623 $ 619,895 2017: Allowance for loan losses: Real estate loans: Residential properties $ — $ 9,715 $ — $ 9,715 $ 248 Commercial properties — 4,399 — 4,399 1,449 Land — 395 — 395 4 Commercial and industrial loans 909 2,715 — 3,624 1,204 Consumer loans — 267 — 267 100 Total $ 909 $ 17,491 $ — $ 18,400 $ 3,005 Loans: Real estate loans: Residential properties $ — $ 2,581,245 $ — $ 2,581,245 $ 26,605 Commercial properties 4,037 691,632 1,079 696,748 168,057 Land — (837 ) 837 37,160 167 Commercial and industrial loans 9,399 299,539 1,841 310,779 62,849 Consumer loans — 29,330 — 29,330 2,899 Total $ 13,436 $ 3,600,909 $ 3,757 $ 3,655,262 $ 260,577 |
Risk Category of Loans by Class of Loans | Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of December 31: (dollars in thousands) Pass Special Substandard Impaired Total 2018: Real estate loans: Residential properties $ 2,857,666 $ 3,446 $ — $ 651 $ 2,861,763 Commercial properties 845,672 13,024 7,602 2,871 869,169 Land 78,681 — 809 697 80,187 Commercial and industrial loans 431,751 7,723 1,772 8,559 449,805 Consumer loans 22,699 — — — 22,699 Total $ 4,236,469 $ 24,193 $ 10,183 $ 12,778 $ 4,283,623 2017: Real estate loans: Residential properties $ 2,578,773 $ 192 $ 2,280 $ — $ 2,581,245 Commercial properties 680,449 6,326 5,936 4,037 696,748 Land 36,321 — 839 — 37,160 Commercial and industrial loans 298,408 865 2,107 9,399 310,779 Consumer loans 29,330 — — — 29,330 Total $ 3,623,281 $ 7,383 $ 11,162 $ 13,436 $ 3,655,262 |
Individual Evaluation of Impaired Loans and Related Allowance | Impaired loans evaluated individually and any related allowance is as follows as of December 31: With No Allowance Recorded With an Allowance Recorded (dollars in thousands) Unpaid Recorded Unpaid Recorded Related 2018: Real estate loans: Residential properties $ 651 $ 651 $ — $ — $ — Commercial properties 1,607 1,607 1,264 1,264 126 Land 697 697 — — — Commercial and industrial loans 6,543 6,543 2,016 2,016 290 Total $ 9,498 $ 9,498 $ 3,280 $ 3,280 $ 416 2017: Real estate loans: Commercial properties $ 4,037 4,037 $ — $ — $ — Commercial and industrial loans 250 250 9,149 9,149 909 Total $ 4,287 $ 4,287 $ 9,149 $ 9,149 $ 909 |
Weighted Average Annualized Balance of Recorded Investment and Interest Income on Impaired Loans | The weighted average annualized average balance of the recorded investment for impaired loans, beginning from when the loan became impaired, and any interest income recorded on impaired loans after they became impaired is as follows for the years ending December 31: 2018 2017 2016 (dollars in thousands) Average Interest Average Interest Average Interest Real estate loans: Residential properties $ 276 $ — $ 1,323 $ 20 $ 1,970 $ 14 Commercial properties 3,459 90 2,403 50 2,252 17 Commercial and industrial loans 9,117 — 5,503 5 1,673 20 Consumer loans — — — — 4 — Total $ 12,852 $ 90 $ 9,229 $ 75 $ 5,899 $ 51 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment is as follows at December 31: (dollars in thousands) 2018 2017 Leasehold improvements and artwork $ 7,268 $ 5,107 Information technology equipment 7,031 7,180 Furniture and fixtures 3,286 3,181 Land and auto 805 — Total 18,390 15,468 Accumulated depreciation and amortization (9,245 ) (8,887 ) Net $ 9,145 $ 6,581 |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
Schedule of Activity in Portfolio of REO | The activity in our portfolio of REO is as follows during the periods ending December 31: (dollars in thousands) 2018 2017 Beginning balance $ 2,920 $ 1,734 Loans transferred to REO (93 ) 1,520 REO acquired in merger 565 — Dispositions of REO (2,577 ) (334 ) Ending balance $ 815 $ 2,920 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Summary of Outstanding Balance of Deposits and Average Rates | The following table summarizes the outstanding balance of deposits and average rates paid thereon at December 31: 2018 2017 (dollars in thousands) Amount Weighted Amount Weighted Demand deposits: Noninterest-bearing $ 1,074,661 — $ 1,097,196 — Interest-bearing 317,380 0.798 % 235,294 0.411 % Money market and savings 1,190,717 1.115 % 1,210,240 0.840 % Certificates of deposits 1,950,210 2.142 % 900,797 1.189 % Total $ 4,532,968 1.270 % $ 3,443,527 0.634 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the Company’s earnings per share calculations for the years ended December 31: 2018 2017 2016 (dollars in thousands, except share and per share amounts) Basic Diluted Basic Diluted Basic Diluted Net income $ 42,958 $ 42,958 $ 27,582 $ 27,582 $ 23,303 $ 23,303 Basic common shares outstanding 42,092,361 42,092,361 34,482,630 34,482,630 32,365,800 32,365,800 Effect of options, restricted stock and contingent shares issuable 474,747 848,429 1,106,016 Diluted common shares outstanding 42,567,108 35,331,059 33,471,816 Earnings per share $ 1.02 $ 1.01 $ 0.80 $ 0.78 $ 0.72 $ 0.70 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the activities in the Plans during 2018: (dollars in thousands except Options Granted Weighted Average Weighted Average Aggregate Balance: December 31, 2017 900,884 $ 7.73 Options granted — — Options exercised (308,334 ) 7.64 Options forfeited — — Balance: December 31, 2018 592,550 7.78 2.88 Years $ 3,012 Options exercisable 592,550 $ 7.78 7.78 Years $ 3,012 The following table summarizes the activities in the Plans during 2017: (dollars in thousands except Options Granted Weighted Average Weighted Average Aggregate Balance: December 31, 2016 1,972,884 $ 6.34 Options granted — — Options exercised (1,072,000 ) 5.18 Options forfeited — — Balance: December 31, 2017 900,884 7.73 3.37 Years $ 9,738 Options exercisable 900,884 $ 7.73 3.37 Years $ 9,738 The following table summarizes the activities in the Plans during 2016: (dollars in thousands except Options Granted Weighted Average Weighted Average Aggregate Balance: December 31, 2015 2,716,834 $ 6.35 Options granted — — Options exercised (690,592 ) 6.17 Options forfeited (53,358 ) 9.18 Balance: December 31, 2016 1,972,884 6.34 2.45 Years $ 15,601 Options exercisable 1,945,032 $ 6.30 2.39 Years $ 15,457 |
Summary of RSUs Issued under Equity Incentive Plan | The following table provides a summary of the RSUs issued by the Company under its equity incentive plans for the periods ended December 31: 2018 2017 2016 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Balance: January 1 149,766 $ 14.73 117,308 $ 10.19 134,728 $ 9.93 New RSUs 119,438 18.03 110,463 17.62 50,568 11.15 Shares vested and issued (154,884 ) 15.23 (78,005 ) 12.01 (67,988 ) 10.39 RSUs forfeited — — — — — — Balance December 31 114,320 $ 17.51 149,766 $ 14.73 117,308 $ 10.19 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The Company is subject to federal income tax and California franchise tax. Income tax expense (benefit) was as follows for the years ended December 311: (dollars in thousands) 2018 2017 2016 Current expense: Federal $ 10,168 $ 14,122 $ 10,235 State 5,768 4,384 3,459 Deferred expense (benefit): Federal 919 4,677 1,263 State 273 (166 ) 74 Total $ 17,128 $ 23,017 $ 15,031 |
Schedule of Comparison of the Federal Statutory Income Tax Rates | The following is a comparison of the federal statutory income tax rates to the Company’s effective income tax rate for the years ended December 31: 2018 2017 2016 (dollars in thousands) Amount Rate Amount Rate Amount Rate Income before taxes $ 60,086 $ 50,599 $ 38,334 Federal tax statutory rate $ 12,618 21.00 % $ 17,710 35.00 % $ 13,417 35.00 % State tax, net of Federal benefit 4,876 8.12 % 3,313 6.55 % 2,510 6.55 % Windfall benefit – exercise of stock options (816 ) (1.36 )% (3,762 ) (7.43) % (1,025) (2.67) % Change in federal rate — — % 5,414 10.70 % — — % Other items, net 450 0.75 % 342 0.68 % 129 0.34 % Effective tax rate $ 17,128 28.51 % $ 23,017 45.49 % $ 15,031 39.22 % |
Summary of Components of the Net Deferred Tax Assets Recognized | Deferred taxes are a result of differences between income tax accounting and generally accepted accounting principles with respect to income tax recognition. The following is a summary of the components of the net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31: (dollars in thousands) 2018 2017 Deferred tax assets (liabilities) Allowance for loan and REO losses $ 4,847 $ 4,741 Operating loss carryforwards 2,918 3,157 State taxes 1,166 921 Stock-based compensation 642 678 Market valuation: Acquired loans and REO 5,695 2,505 Capital activities – mark to market 103 — Accrued vacation 561 418 Organizational expenses 192 179 Core deposit intangible (3,197 ) (1,817 ) Prepaid expenses (680 ) (586 ) Depreciation (672 ) (833 ) Accumulated other comprehensive income 476 2,105 Other 1,200 675 Net deferred tax assets $ 13,251 $ 12,143 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Commitments under All Non-cancelable Operating Leases | Future minimum lease commitments under all non-cancelable operating leases at December 31, 2018 are as follows: (dollars in thousands) Year Ending December 31, 2019 $ 6,075 2020 5,785 2021 5,507 2022 4,573 2023 and after 3,842 Total $ 25,782 |
Off Balance Sheet Arrangements of Bank | The following table provides the off-balance sheet arrangements of the Bank as of December 31: (dollars in thousands) 2018 2017 Commitments to fund new loans $ 27,688 $ 44,561 Commitments to fund under existing loans, lines of credit 352,148 211,712 Commitments under standby letters of credit 12,001 2,352 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Designated as Hedging Instruments | The following table provides information related to derivatives designated as hedging instruments as of December 31, 2018: Derivative Assets Derivative Liabilities (dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate contracts Other assets $ — Other liabilities $ 5,175 |
Schedule of Fair Value Hedge Accounting on the Consolidated Income Statement | The following table provides the effect of fair value hedge accounting on the consolidated income statement for 2018, including the location and amount of gain or (loss) recognized in income on fair value hedging relationships: (dollars in thousands) Interest Income - Loans Gain or (Loss): Interest contracts: Hedged items $ 4,821 Derivatives designated as hedging instruments 5,175 |
Schedule of Amounts were Recorded on Balance Sheet Related to Cumulative Adjustments for Fair Value hedges | As of December 31, 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Balance Sheet Line Item Carrying Amount of the Hedged Item Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item (dollars in thousands) Loans held for sale $ 507,643 $ 4,821 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Loans | Loans to related parties, including directors and executive officers of the Company and their affiliates, were as follows for the periods presented: (dollars in thousands) 2018 2017 Balance, January 1 $ 5,910 $ 5,910 New loans and advances — — Principal payments received (5,910) — Balance, December 31 $ — $ 5,910 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Capital and Capital Ratios | The following table sets forth the capital and capital ratios of FFI (on a consolidated basis) and FFB (on a stand-alone basis) as of the respective dates and as compared to the respective regulatory requirements applicable to them: Actual For Capital To Be Well-Capitalized (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio FFI December 31, 2018 CET1 capital ratio $ 460,600 10.67 % $ 194,179 4.50 % Tier 1 leverage ratio 460,600 8.39 % 219,694 4.00 % Tier 1 risk-based capital ratio 460,600 10.67 % 258,906 6.00 % Total risk-based capital ratio 481,476 11.16 % 345,207 8.00 % December 31, 2017 CET1 capital ratio $ 366,236 11.99 % $ 137,435 4.50 % Tier 1 leverage ratio 366,236 8.44 % 173,514 4.00 % Tier 1 risk-based capital ratio 366,236 11.99 % 183,246 6.00 % Total risk-based capital ratio 385,236 12.61 % 244,328 8.00 % BANK December 31, 2018 CET1 capital ratio $ 453,248 10.51 % $ 194,058 4.50 % $ 280,306 6.50 % Tier 1 leverage ratio 453,248 8.26 % 219,568 4.00 % 274,461 5.00 % Tier 1 risk-based capital ratio 453,248 10.51 % 258,744 6.00 % 344,992 8.00 % Total risk-based capital ratio 474,124 10.99 % 344,992 8.00 % 431,240 10.00 % December 31, 2017 CET1 capital ratio $ 398,709 13.07 % $ 137,290 4.50 % $ 198,308 6.50 % Tier 1 leverage ratio 398,709 9.20 % 173,363 4.00 % 216,703 5.00 % Tier 1 risk-based capital ratio 398,709 13.07 % 183,053 6.00 % 244,071 8.00 % Total risk-based capital ratio 417,709 13.69 % 244,071 8.00 % 305,089 10.00 % |
Schedule of Minimum Capital Ratios Plus the Applicable Increment of the Capital Conservation | The following table sets forth the minimum capital ratios plus the applicable increment of the capital conservation buffer as of the current year and the fully implemented ratios that took effect on January 1, 2019: 2018 2019 CET-1 to risk-weighted assets 6.375 % 7.000 % Tier 1 capital (i.e., CET-1 plus Additional Tier 1) to risk-weighted assets 7.875 % 8.500 % Total capital (i.e., Tier 1 plus Tier 2) to risk-weighted assets 9.875 % 10.500 % |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule of Professional Services and Marketing Costs and Other Expenses | The following items are included in the consolidated income statements as professional services and marketing costs and other expenses for the years ended December 31: (dollars in thousands) 2018 2017 2016 Regulatory assessments $ 3,652 $ 2,677 $ 2,224 Directors’ compensation expenses 596 540 543 Acquisition expenses 3,794 2,640 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Key Operating Results of Business Segments | The following tables show key operating results for each of our business segments used to arrive at our consolidated totals for the years ended December 31 (dollars in thousands) Banking Wealth Other Total 2018: Interest income $ 207,306 $ — $ — $ 207,306 Interest expense 49,935 — 1,761 51,696 Net interest income 157,371 — (1,761 ) 155,610 Provision for loan losses 4,220 — — 4,220 Noninterest income 11,322 25,247 (798 ) 35,771 Noninterest expense 100,778 21,670 4,627 127,075 Income (loss) before taxes on income $ 63,695 $ 3,577 $ (7,186 ) $ 60,086 2017: Interest income $ 136,801 $ — $ — $ 136,801 Interest expense 22,530 — 653 23,183 Net interest income 114,271 — (653 ) 113,618 Provision for loan losses 2,762 — — 2,762 Noninterest income 16,016 23,556 (853 ) 38,719 Noninterest expense 73,990 20,469 4,517 98,976 Income (loss) before taxes on income $ 53,535 $ 3,087 $ (6,023 ) $ 50,599 2016: Interest income $ 100,642 $ — $ — $ 100,642 Interest expense 11,193 — — 11,193 Net interest income 89,449 — — 89,449 Provision for loan losses 4,681 — — 4,681 Noninterest income 13,832 21,348 (620 ) 34,560 Noninterest expense 58,422 19,232 3,340 80,994 Income (loss) before taxes on income $ 40,178 $ 2,116 $ (3,960 ) $ 38,334 |
Summary of Financial Position of Business Segments | The following tables show the financial position for each of our business segments, and of FFI which is included in the column labeled Other, and the eliminating entries used to arrive at our consolidated totals at December 31: (dollars in thousands) Banking Wealth Other Eliminations Total 2018: Cash and cash equivalents $ 67,148 $ 4,636 $ 6,728 $ (11,200 ) $ 67,312 Securities AFS 809,569 — — — 809,569 Loans held for sale 507,643 — — — 507,643 Loans, net 4,274,669 — — — 4,274,669 Premises and equipment 8,221 788 136 — 9,145 FHLB Stock 20,307 — — — 20,307 Deferred taxes 12,905 103 243 — 13,251 REO 815 — — — 815 Goodwill and Intangibles 99,482 — — — 99,482 Other assets 35,906 605 555,465 (553,757 ) 38,219 Total assets $ 5,836,665 $ 6,132 $ 562,572 $ (564,957 ) $ 5,840,412 Deposits $ 4,544,168 $ — $ — $ (11,200 ) $ 4,532,968 Borrowings 703,000 — 5,000 — 708,000 Intercompany balances 3,689 467 (4,156 ) — — Other liabilities 34,886 2,830 2,544 — 40,260 Shareholders’ equity 550,922 2,835 559,184 (553,757 ) 559,184 Total liabilities and equity $ 5,836,665 $ 6,132 $ 562,572 $ (564,957 ) $ 5,840,412 2017: Cash and cash equivalents $ 120,261 $ 4,407 $ 12,664 $ (16,938 ) $ 120,394 Securities AFS 519,364 — — — 519,364 Loans held for sale 154,380 — — — 154,380 Loans, net 3,645,327 — — — 3,645,327 Premises and equipment 5,519 926 136 — 6,581 FHLB Stock 19,060 — — — 19,060 Deferred taxes 12,008 172 (37 ) — 12,143 REO 2,920 — — — 2,920 Goodwill and Intangibles 33,576 — — — 33,576 Other assets 25,521 179 431,335 (429,595 ) 27,440 Total assets $ 4,537,936 $ 5,684 $ 444,098 $ (446,533 ) $ 4,541,185 Deposits $ 3,460,465 $ — $ — $ (16,938 ) $ 3,443,527 Borrowings 628,000 — 50,000 — 678,000 Intercompany balances 3,301 643 (3,944 ) — — Other liabilities 18,646 2,970 3,091 — 24,707 Shareholders’ equity 427,524 2,071 394,951 (429,595 ) 394,951 Total liabilities and equity $ 4,537,936 $ 5,684 $ 444,098 $ (446,533 ) $ 4,541,185 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Information | (dollars in thousands, First Second Third Fourth Full Year Year Ended December 31, 2018: Interest income $ 43,319 $ 48,498 $ 58,047 $ 57,442 $ 207,306 Interest expense 9,051 12,247 14,321 16,077 51,696 Net interest income 34,268 36,251 43,726 41,365 155,610 Provision for loan losses 1,688 2,450 9 73 4,220 Noninterest income 8,982 6,984 11,104 8,701 35,771 Noninterest expense 28,988 33,982 33,967 30,138 127,075 Income before taxes on income 12,574 6,803 20,854 19,855 60,086 Taxes on income 3,598 1,657 6,147 5,726 17,128 Net income $ 8,976 $ 5,146 $ 14,707 $ 14,129 $ 42,958 Income per share Basic $ 0.23 $ 0.13 $ 0.33 $ 0.32 $ 1.02 Diluted $ 0.23 $ 0.12 $ 0.33 $ 0.31 $ 1.01 Year Ended December 31, 2017: Interest income $ 30,360 $ 33,652 $ 34,878 $ 37,911 $ 136,801 Interest expense 4,302 5,757 6,438 6,686 23,183 Net interest income 26,058 27,895 28,440 31,225 113,618 Provision for loan losses 69 1,092 701 900 2,762 Noninterest income 7,783 9,697 9,863 11,376 38,719 Noninterest expense 24,709 22,213 23,393 28,661 98,976 Income before taxes on income 9,063 14,287 14,209 13,040 50,599 Taxes on income 2,950 4,671 4,629 10,767 23,017 Net income $ 6,113 $ 9,616 $ 9,580 $ 2,273 $ 27,582 Income per share Basic $ 0.19 $ 0.29 $ 0.28 $ 0.06 $ 0.80 Diluted $ 0.18 $ 0.28 $ 0.27 $ 0.06 $ 0.78 Year Ended December 31, 2016: Interest income $ 21,698 $ 24,573 $ 26,004 $ 28,367 $ 100,642 Interest expense 2,337 2,652 2,841 3,363 11,193 Net interest income 19,361 21,921 23,163 25,004 89,449 Provision for loan losses 400 1,250 1,231 1,800 4,681 Noninterest income 6,985 4,910 15,079 7,586 34,560 Noninterest expense 19,417 19,850 21,536 20,191 80,994 Income before taxes on income 6,529 5,731 15,475 10,599 38,334 Taxes on income 2,742 2,407 5,800 4,082 15,031 Net income $ 3,787 $ 3,324 $ 9,675 $ 6,517 $ 23,303 Income per share Basic $ 0.12 $ 0.10 $ 0.30 $ 0.20 $ 0.72 Diluted $ 0.11 $ 0.10 $ 0.29 $ 0.19 $ 0.70 |
Parent Only Financial Stateme_2
Parent Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | |
Condensed Balance Sheet | December 31, (dollars in thousands) 2018 2017 ASSETS Cash and cash equivalents $ 6,728 $ 12,664 Premises and equipment, net 136 136 Deferred taxes 243 (37 ) Investment in subsidiaries 553,757 429,595 Intercompany receivable 4,156 3,944 Other assets 1,708 1,740 Total Assets $ 566,728 $ 448,042 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Borrowings $ 5,000 $ 50,000 Accounts payable and other liabilities 2,544 3,091 Total Liabilities 7,544 53,091 Shareholders’ Equity Common Stock 44 38 Additional paid-in-capital 431,832 314,501 Retained earnings 128,461 85,503 Accumulated other comprehensive income (loss), net of tax (1,153 ) (5,091 ) Total Shareholders’ Equity 559,184 394,951 Total Liabilities and Shareholders’ Equity $ 566,728 $ 448,042 |
Condensed Income Statement | For the Year Ended (dollars in thousands) 2018 2017 2016 Interest expense—borrowings $ 1,761 $ 653 $ — Noninterest income: Earnings from investment in subsidiaries 48,153 31,547 25,498 Other income 194 — — Total noninterest income 48,347 31,547 25,498 Noninterest expense: Compensation and benefits 1,395 1,302 971 Occupancy and depreciation 197 197 96 Professional services and marketing costs 2,790 2,741 1,929 Other expenses 1,237 1,130 964 Total noninterest expense 5,619 5,370 3,960 Income before taxes on income 40,967 25,524 21,538 Taxes on income (1,991 ) (2,058 ) (1,765 ) Net income $ 42,958 $ 27,582 $ 23,303 |
Condensed Statement of Comprehensive Income | For the Year Ended (dollars in thousands) 2018 2017 2016 Net income $ 42,958 $ 27,582 $ 23,303 Other comprehensive income (loss): Unrealized holding gains (losses) on securities arising during the period 5,567 1,717 (6,697 ) Other comprehensive income (loss) before tax 5,567 1,717 (6,697 ) Income tax (expense) benefit related to items of other comprehensive income (1,629 ) (707 ) 2,122 Other comprehensive income (loss) 3,938 1,010 (4,575 ) Less: Reclassification adjustment for gains (loss) included in net earnings — — 1,043 Income tax (expense) benefit related to reclassification adjustment — — (409 ) Reclassification adjustment for gains included in net earnings, net of tax — — 634 Other comprehensive income (loss), net of tax 3,938 1,010 (3,941 ) Total comprehensive income $ 46,896 $ 28,592 $ 19,362 |
Condensed Cash Flow Statement | For the Year Ended (dollars in thousands) 2018 2017 2016 Cash Flows from Operating Activities: Net income $ 42,958 $ 27,582 $ 23,303 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Earnings from investment in subsidiaries (48,153 ) (31,547 ) (25,498 ) Stock–based compensation expense 65 61 78 Deferred tax liability (benefit) (280 ) (37 ) 296 Increase in other assets 32 (29 ) (1,464 ) Increase (decrease) in accounts payable and other liabilities (547 ) 3,161 (1,102 ) Net cash used in operating activities (5,925 ) (809 ) (4,387 ) Cash Flows from Investing Activities: Investment in subsidiaries — (72,845 ) (40,000 ) Dividend from subsidiary 32,000 2,000 5,000 Purchase of premises and equipment — — (24 ) Net cash provided by (used in) investing activities 32,000 (70,845 ) (35,024 ) Cash Flows from Financing Activities: Proceeds from borrowings — 50,000 — Paydowns of borrowings (45,000 ) — — Proceeds from the sale of stock, net 13,698 28,386 4,267 Repurchase of stock (497 ) — — Intercompany accounts, net decrease (increase) (212 ) (386 ) (689 ) Net cash (used in) provided by financing activities (32,011 ) 78,000 3,578 Increase (decrease) in cash and cash equivalents (5,936 ) 6,346 (35,833 ) Cash and cash equivalents at beginning of year 12,664 6,318 42,151 Cash and cash equivalents at end of year $ 6,728 $ 12,664 $ 6,318 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Jan. 18, 2017 | Dec. 31, 2018USD ($)EmployeesSubsidiaryClients | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2019USD ($) | Jan. 04, 2017shares |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of inactive wholly owned subsidiaries | Subsidiary | 2 | |||||
Number of full-time equivalent employees | Employees | 482 | |||||
Cash and cash equivalents held at the Federal Reserve Bank | $ 32,800,000 | |||||
Impaired long-lived assets | 0 | $ 0 | ||||
Investment in FHLB stock | 20,307,000 | 19,060,000 | ||||
Impairment charges | 0 | 0 | ||||
Core deposit intangible amortization expense | 2,043,000 | 394,000 | $ 239,000 | |||
Stock split, conversion ratio | 2 | |||||
Additional share of common stock following stock split | shares | 1 | |||||
Scenario, Forecast | ASU 2016-02 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Right to use asset | $ 21,000,000 | |||||
Lease liability | $ 23,000,000 | |||||
Core Deposit | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Core deposit intangible assets | 11,000,000 | 6,300,000 | ||||
Core deposit intangible amortization expense | 2,000,000 | $ 400,000 | $ 200,000 | |||
Federal Home Loan Bank Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Adjustments in carrying value | $ 0 | |||||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 3 years | |||||
Estimated useful lives of other intangible assets | 7 years | |||||
Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 10 years | |||||
Estimated useful lives of other intangible assets | 10 years | |||||
FFA | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Approximate number of clients | Clients | 1,500 | |||||
Aggregate assets under management | $ 3,900,000,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 01, 2018 | Nov. 10, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Deferred income tax asset, operating loss carry-forward and other tax attributes | $ 2,918 | $ 3,157 | |||
Premier Business Bank | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Jun. 1, 2018 | ||||
Common stock issued in exchange for acquisition, shares | 5,234,593 | ||||
Stock value per share, acquisition date | $ 19.39 | ||||
Goodwill | $ 61,000 | ||||
Deferred income tax asset, operating loss carry-forward and other tax attributes | $ 3,800 | ||||
Business combination, value of deposit | $ 6,700 | ||||
Finite-lived intangible asset, amortized period | 7 years | ||||
Acquisition date | Jan. 1, 2018 | Jan. 1, 2017 | Jan. 1, 2016 | ||
Increase in net income, pro forma adjustment | $ 9,600 | $ 3,000 | $ 1,400 | ||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 17,200 | ||||
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual | $ 6,500 | ||||
Community 1st Bancorp | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Nov. 10, 2017 | ||||
Common stock issued in exchange for acquisition, shares | 2,955,623 | ||||
Stock value per share, acquisition date | $ 17.55 | ||||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 1,400 | ||||
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual | $ 900 |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed (Details) - Premier Business Bank $ in Thousands | Jun. 01, 2018USD ($) |
PBB Book Value | |
Assets Acquired: | |
Cash and cash equivalents | $ 47,582 |
Securities AFS | 10,072 |
Loans, net of deferred fees | 537,885 |
Allowance for loan losses | (3,011) |
Premises and equipment, net | 3,811 |
Investment in FHLB stock | 3,229 |
Deferred taxes | 1,451 |
REO | 934 |
Goodwill and core deposit intangible | 634 |
Other assets | 6,634 |
Total assets acquired | 609,221 |
Liabilities Assumed: | |
Deposits | 477,366 |
Borrowings | 79,911 |
Accounts payable and other liabilities | 5,204 |
Total liabilities assumed | 562,481 |
Excess of assets acquired over liabilities assumed | 46,740 |
Total | 609,221 |
Fair Value Adjustments | |
Assets Acquired: | |
Securities AFS | (90) |
Loans, net of deferred fees | (14,986) |
Allowance for loan losses | 3,011 |
Premises and equipment, net | (1,536) |
Deferred taxes | 2,398 |
REO | (109) |
Goodwill and core deposit intangible | 66,615 |
Other assets | (566) |
Total assets acquired | 54,737 |
Liabilities Assumed: | |
Deposits | 219 |
Borrowings | (341) |
Accounts payable and other liabilities | 100 |
Total liabilities assumed | (22) |
Excess of assets acquired over liabilities assumed | 54,759 |
Total | 54,737 |
Fair Value | |
Assets Acquired: | |
Cash and cash equivalents | 47,582 |
Securities AFS | 9,982 |
Loans, net of deferred fees | 522,899 |
Premises and equipment, net | 2,275 |
Investment in FHLB stock | 3,229 |
Deferred taxes | 3,849 |
REO | 825 |
Goodwill and core deposit intangible | 67,249 |
Other assets | 6,068 |
Total assets acquired | 663,958 |
Liabilities Assumed: | |
Deposits | 477,585 |
Borrowings | 79,570 |
Accounts payable and other liabilities | 5,304 |
Total liabilities assumed | 562,459 |
Excess of assets acquired over liabilities assumed | 101,499 |
Total | 663,958 |
Consideration: | |
Stock issued | $ 101,499 |
Acquisitions - Schedule of Loan
Acquisitions - Schedule of Loans Acquired (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Purchased Credit Impaired | |
Business Acquisition [Line Items] | |
Contractual amounts due | $ 33,791 |
Cash flows not expected to be collected | 14,443 |
Expected cash flows | 19,348 |
Interest component of expected cash flows | 1,887 |
Fair value of acquired loans | 17,461 |
All Other Acquired Loans | |
Business Acquisition [Line Items] | |
Contractual amounts due | 697,512 |
Cash flows not expected to be collected | 7,084 |
Expected cash flows | 690,428 |
Interest component of expected cash flows | 184,990 |
Fair value of acquired loans | $ 505,438 |
Acquisitions - Pro Forma Summar
Acquisitions - Pro Forma Summarized Income Statement Data (Details) - Premier Business Bank - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Net interest income | $ 167,099 | $ 149,650 | $ 120,734 |
Provision for loan losses | 4,220 | 3,472 | 5,216 |
Noninterest income | 36,538 | 41,420 | 38,693 |
Noninterest expenses | 130,702 | 124,838 | 103,478 |
Income before taxes | 68,715 | 62,760 | 50,733 |
Taxes on income | 19,412 | 28,284 | 19,138 |
Net income | $ 49,303 | $ 34,476 | $ 31,594 |
Net income per share: | |||
Basic | $ 1.11 | $ 0.82 | $ 0.78 |
Diluted | $ 1.10 | $ 0.80 | $ 0.76 |
Fair Value - Recorded Amounts o
Fair Value - Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 809,569 | $ 519,364 |
Investment in equity securities | 352 | 158 |
Other | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 1,470 | 493 |
Interest Rate Swaps | ||
Derivatives: | ||
Derivative liabilities | 5,175 | |
Agency Mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 721,669 | 464,019 |
Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 32,086 | 35,852 |
Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 352 | 158 |
Total assets at fair value on a recurring basis | 809,921 | 519,522 |
Fair Value on Recurring Basis | Other | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 1,470 | 493 |
Fair Value on Recurring Basis | Interest Rate Swaps | ||
Derivatives: | ||
Derivative liabilities | 5,175 | |
Fair Value on Recurring Basis | Agency Mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 721,669 | 464,019 |
Fair Value on Recurring Basis | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 54,344 | 19,000 |
Fair Value on Recurring Basis | Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 32,086 | 35,852 |
Fair Value Measurement Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 1,470 | 493 |
Investment in equity securities | 352 | 158 |
Fair Value Measurement Level 1 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 352 | 158 |
Total assets at fair value on a recurring basis | 1,822 | 651 |
Fair Value Measurement Level 1 | Fair Value on Recurring Basis | Other | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 1,470 | 493 |
Fair Value Measurement Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 410,785 | 483,019 |
Fair Value Measurement Level 2 | Interest Rate Swaps | ||
Derivatives: | ||
Derivative liabilities | 5,175 | |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 410,785 | 483,019 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Interest Rate Swaps | ||
Derivatives: | ||
Derivative liabilities | 5,175 | |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Agency Mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 356,441 | 464,019 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 54,344 | 19,000 |
Fair Value Measurement Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 397,314 | 35,852 |
Fair Value Measurement Level 3 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 397,314 | 35,852 |
Fair Value Measurement Level 3 | Fair Value on Recurring Basis | Agency Mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 365,228 | |
Fair Value Measurement Level 3 | Fair Value on Recurring Basis | Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 32,086 | $ 35,852 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impaired loans measured at nonrecurring basis | When the fair value of the collateral is based on an observable market price or a current appraised value, we measure the impaired loan at nonrecurring Level 2. When an appraised value is not available, or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price or a discounted cash flow has been used to determine the fair value, we measure the impaired loan at nonrecurring Level 3. | ||
Real estate owned (“REO”) | $ 815,000 | $ 2,920,000 | $ 1,734,000 |
Fair Value Measurement Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total collateral dependent impaired loans | 12,800,000 | 13,400,000 | |
Reserves related to impaired loans | 0 | 0 | |
Real estate owned (“REO”) | $ 800,000 | $ 2,900,000 | |
Fair Value Measurement Level 3 | Prepayment Rate | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Alternative investment measurement input | 0.15 | ||
Fair Value Measurement Level 3 | Minimum | Discount Rate | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Alternative investment measurement input | 0.040 | ||
Fair Value Measurement Level 3 | Maximum | Discount Rate | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Alternative investment measurement input | 0.10 |
Fair Value - Carrying Amounts a
Fair Value - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 67,312 | $ 120,394 | $ 597,946 | $ 215,748 |
Securities AFS | 809,569 | 519,364 | ||
Loans held for sale | 507,643 | 154,380 | ||
Loans, net | 4,274,669 | 3,645,327 | ||
Investment in FHLB stock | 20,307 | 19,060 | ||
Investment in equity securities | 352 | 158 | ||
Liabilities: | ||||
Deposits | 4,532,968 | 3,443,527 | ||
Borrowings | 708,000 | 678,000 | ||
Assets Fair Value: | ||||
Cash and cash equivalents | 67,312 | 120,394 | ||
Securities AFS | 809,569 | 519,364 | ||
Loans held for sale | 517,273 | 154,345 | ||
Loans, net | 4,408,788 | 3,617,060 | ||
Investment in FHLB stock | 20,307 | 19,060 | ||
Investment in equity securities | 352 | 158 | ||
Liabilities Fair Value: | ||||
Deposits | 4,526,393 | 3,444,607 | ||
Borrowings | 708,000 | 678,000 | ||
Fair Value Measurement Level 1 | ||||
ASSETS | ||||
Securities AFS | 1,470 | 493 | ||
Investment in equity securities | 352 | 158 | ||
Assets Fair Value: | ||||
Cash and cash equivalents | 67,312 | 120,394 | ||
Securities AFS | 1,470 | 493 | ||
Investment in equity securities | 352 | 158 | ||
Liabilities Fair Value: | ||||
Deposits | 2,582,758 | 2,542,730 | ||
Fair Value Measurement Level 2 | ||||
ASSETS | ||||
Securities AFS | 410,785 | 483,019 | ||
Investment in FHLB stock | 20,307 | 19,060 | ||
Assets Fair Value: | ||||
Securities AFS | 410,785 | 483,019 | ||
Loans held for sale | 517,273 | 155,345 | ||
Investment in FHLB stock | 20,307 | 19,060 | ||
Liabilities Fair Value: | ||||
Deposits | 1,943,635 | 901,877 | ||
Borrowings | 703,000 | 628,000 | ||
Fair Value Measurement Level 3 | ||||
ASSETS | ||||
Securities AFS | 397,314 | 35,852 | ||
Assets Fair Value: | ||||
Securities AFS | 397,314 | 35,852 | ||
Loans, net | 4,408,788 | 3,617,060 | ||
Liabilities Fair Value: | ||||
Borrowings | 5,000 | $ 50,000 | ||
Interest Rate Swaps | ||||
Liabilities: | ||||
Derivative liabilities | 5,175 | |||
Liabilities Fair Value: | ||||
Derivative liabilities | 5,175 | |||
Interest Rate Swaps | Fair Value Measurement Level 2 | ||||
Liabilities: | ||||
Derivative liabilities | 5,175 | |||
Liabilities Fair Value: | ||||
Derivative liabilities | $ 5,175 |
Securities - Summary of AFS Sec
Securities - Summary of AFS Securities Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 811,198 | $ 526,560 |
Gross Unrealized gains | 14,292 | 2,098 |
Gross Unrealized losses | (15,921) | (9,294) |
Estimated Fair Value | 809,569 | 519,364 |
Other | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 1,458 | 499 |
Gross Unrealized gains | 15 | |
Gross Unrealized losses | (3) | (6) |
Estimated Fair Value | 1,470 | 493 |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 723,597 | 471,131 |
Gross Unrealized gains | 11,883 | 287 |
Gross Unrealized losses | (13,811) | (7,399) |
Estimated Fair Value | 721,669 | 464,019 |
Beneficial interest - FHLMC securitizations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 32,143 | 35,930 |
Gross Unrealized gains | 1,756 | 1,811 |
Gross Unrealized losses | (1,813) | (1,889) |
Estimated Fair Value | 32,086 | 35,852 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 54,000 | 19,000 |
Gross Unrealized gains | 638 | |
Gross Unrealized losses | (294) | |
Estimated Fair Value | $ 54,344 | $ 19,000 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Loans pledged as collateral | $ 3,000 | |
Weighted average yield, total | 5.25% | 5.13% |
US Treasury Securities | Other | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Loans pledged as collateral | $ 0.5 | |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Loans pledged as collateral | $ 79 | |
Agency Mortgage-backed Securities and Beneficial interests in FHLMC securitization | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Weighted average yield, total | 2.91% | 2.55% |
Securities - Schedule of Securi
Securities - Schedule of Securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 39,135 | $ 159,181 |
Less than 12 months, Unrealized Loss | (305) | (1,396) |
12 months or more, Fair Value | 394,686 | 268,247 |
12 months or more, Unrealized Loss | (15,616) | (7,898) |
Total, Fair Value | 433,821 | 427,428 |
Total, Unrealized Loss | (15,921) | (9,294) |
Other | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 197 | |
Less than 12 months, Unrealized Loss | (2) | |
12 months or more, Fair Value | 497 | 296 |
12 months or more, Unrealized Loss | (3) | (4) |
Total, Fair Value | 497 | 493 |
Total, Unrealized Loss | (3) | (6) |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 158,984 | |
Less than 12 months, Unrealized Loss | (1,394) | |
12 months or more, Fair Value | 387,151 | 259,213 |
12 months or more, Unrealized Loss | (13,811) | (6,005) |
Total, Fair Value | 387,151 | 418,197 |
Total, Unrealized Loss | (13,811) | (7,399) |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 38,706 | |
Less than 12 months, Unrealized Loss | (294) | |
Total, Fair Value | 38,706 | |
Total, Unrealized Loss | (294) | |
Beneficial interests in FHLMC securitization | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 429 | |
Less than 12 months, Unrealized Loss | (11) | |
12 months or more, Fair Value | 7,038 | 8,738 |
12 months or more, Unrealized Loss | (1,802) | (1,889) |
Total, Fair Value | 7,467 | 8,738 |
Total, Unrealized Loss | $ (1,813) | $ (1,889) |
Securities - Scheduled Maturiti
Securities - Scheduled Maturities of Securities AFS Other than Mortgage Backed Securities and the Related Weighted Average Yield (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | $ 500 | |
Amortized cost, one through five years | $ 499 | |
Amortized cost, five through ten years | 54,958 | 19,000 |
Amortized cost, total | $ 55,458 | $ 19,499 |
Weighted average yield, less than one year | 1.03% | |
Weighted average yield, one through five years | 1.03% | |
Weighted average yield, five through ten years | 5.29% | 5.24% |
Weighted average yield, total | 5.25% | 5.13% |
Estimated fair value, less than one year | $ 497 | |
Estimated fair value, one through five years | $ 493 | |
Estimated fair value, five through ten years | 55,317 | 19,000 |
Estimated fair value, total | 55,814 | 19,493 |
Other | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 500 | |
Amortized cost, one through five years | 499 | |
Amortized cost, five through ten years | 958 | |
Amortized cost, total | 1,458 | 499 |
Estimated fair value, less than one year | 497 | |
Estimated fair value, one through five years | 493 | |
Estimated fair value, five through ten years | 973 | |
Estimated fair value, total | 1,470 | 493 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, five through ten years | 54,000 | 19,000 |
Amortized cost, total | 54,000 | 19,000 |
Estimated fair value, five through ten years | 54,344 | 19,000 |
Estimated fair value, total | $ 54,344 | $ 19,000 |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 4,283,623 | $ 3,655,262 |
Deferred expenses, net | 10,046 | 8,465 |
Loans, net of deferred fees | 4,293,669 | 3,663,727 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,861,763 | 2,581,245 |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 869,169 | 696,748 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 449,805 | 310,779 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 22,699 | 29,330 |
Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 80,187 | 37,160 |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,811,119 | 3,315,153 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,861,763 | 2,581,245 |
Real Estate Loans | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 869,169 | 696,748 |
Real Estate Loans | Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 80,187 | 37,160 |
Multifamily | Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,956,935 | 1,935,429 |
Single Family | Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 904,828 | $ 645,816 |
Loans - Additional Information
Loans - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Loans acquired | $ 13.3 | $ 4 |
Loans - Carrying Amount of Purc
Loans - Carrying Amount of Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total impaired loans | $ 13,571 | $ 5,395 |
Unaccreted discount on purchased credit impaired loans | (6,490) | (1,638) |
Receivables Acquired with Deteriorated Credit Quality | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 7,081 | 3,757 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total impaired loans | 451 | |
Commercial Real Estate | Receivables Acquired with Deteriorated Credit Quality | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 5,463 | 1,079 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total impaired loans | 1,150 | 2,774 |
Commercial and Industrial Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 809 | 1,841 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total impaired loans | 10 | |
Land | Receivables Acquired with Deteriorated Credit Quality | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 809 | 837 |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total impaired loans | 12,411 | 2,621 |
Real Estate Loans | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total impaired loans | 10,871 | 1,525 |
Real Estate Loans | Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total impaired loans | $ 1,089 | $ 1,096 |
Loans - Accretable Yield or Inc
Loans - Accretable Yield or Income Expected to be Collected on Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Beginning balance | $ 850 | $ 289 |
Accretion of income | (1,509) | (108) |
Reclassifications from nonaccretable difference | 66 | |
Acquisitions | 1,887 | 603 |
Disposals | (461) | |
Ending balance | $ 767 | $ 850 |
Loans - Summary of Delinquent a
Loans - Summary of Delinquent and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | $ 28,030 | $ 13,546 |
90 Days or More Past Due and Still Accruing | 1,035 | 2,109 |
Nonaccrual Past Due and Still Accruing | 11,516 | 11,359 |
Current | 4,255,593 | 3,641,716 |
Total loans | $ 4,283,623 | $ 3,655,262 |
Percentage of Total Loans Due 30-59 Days | 0.35% | 0.00% |
Percentage of Total Loans Due 60-89 Days | 0.01% | |
Percentage of Total Loans Due 90 Days or More | 0.02% | 0.06% |
Percentage of Total Loans Due Nonaccrual | 0.27% | 0.31% |
Percentage of Total Loans | 0.65% | 0.37% |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 2,861,763 | $ 2,581,245 |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 869,169 | 696,748 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 21,936 | 10,406 |
90 Days or More Past Due and Still Accruing | 536 | 789 |
Nonaccrual Past Due and Still Accruing | 8,559 | 9,617 |
Current | 427,869 | 300,373 |
Total loans | 449,805 | 310,779 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 9 | |
Nonaccrual Past Due and Still Accruing | 2 | |
Current | 22,690 | 29,330 |
Total loans | 22,699 | 29,330 |
Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 80,187 | 37,160 |
30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 15,055 | 78 |
30-59 Days | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 12,541 | |
60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 424 | |
60-89 Days | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 300 | |
60-89 Days | Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 7 | |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,811,119 | 3,315,153 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 1,224 | 78 |
90 Days or More Past Due and Still Accruing | 499 | |
Nonaccrual Past Due and Still Accruing | 651 | |
Current | 2,860,539 | 2,581,167 |
Total loans | 2,861,763 | 2,581,245 |
Real Estate Loans | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 2,164 | 3,062 |
90 Days or More Past Due and Still Accruing | 1,320 | |
Nonaccrual Past Due and Still Accruing | 1,607 | 1,742 |
Current | 867,005 | 693,686 |
Total loans | 869,169 | 696,748 |
Real Estate Loans | Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 2,697 | |
Nonaccrual Past Due and Still Accruing | 697 | |
Current | 77,490 | 37,160 |
Total loans | 80,187 | 37,160 |
Real Estate Loans | 30-59 Days | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 74 | $ 78 |
Real Estate Loans | 30-59 Days | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 440 | |
Real Estate Loans | 30-59 Days | Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 2,000 | |
Real Estate Loans | 60-89 Days | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | $ 117 |
Loans - Composition of TDRs by
Loans - Composition of TDRs by Accrual and Nonaccrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | $ 11,516 | $ 11,359 |
Principal Reduction And Extended Maturity | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 1,264 | 195 |
Troubled Debt Restructurings, Nonaccrual | 3,587 | 4,296 |
Troubled Debt Restructurings, Total | 4,851 | 4,491 |
Principal Reduction And Extended Maturity | Commercial Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 1,264 | |
Troubled Debt Restructurings, Nonaccrual | 1,491 | 1,598 |
Troubled Debt Restructurings, Total | 2,755 | 1,598 |
Principal Reduction And Extended Maturity | Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 195 | |
Troubled Debt Restructurings, Nonaccrual | 2,096 | 2,698 |
Troubled Debt Restructurings, Total | $ 2,096 | $ 2,893 |
Loans - Schedule of Detail of L
Loans - Schedule of Detail of Loans Modified as Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable Modifications [Line Items] | ||
Number of loans | Loan | 4 | 2 |
Outstanding recorded investment, pre-modification | $ 3,360 | $ 1,816 |
Outstanding recorded investment, post-modification | $ 3,360 | $ 1,816 |
Commercial Real Estate Loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | Loan | 1 | 1 |
Outstanding recorded investment, pre-modification | $ 1,264 | $ 1,598 |
Outstanding recorded investment, post-modification | $ 1,264 | $ 1,598 |
Commercial Loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | Loan | 3 | 1 |
Outstanding recorded investment, pre-modification | $ 2,096 | $ 218 |
Outstanding recorded investment, post-modification | $ 2,096 | $ 218 |
Allowance for Loan Losses - Ban
Allowance for Loan Losses - Bank's Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | $ 18,400 | $ 15,400 | $ 10,600 | $ 18,400 | $ 15,400 | $ 10,600 | |||||||||
Provision for loan losses | $ 73 | $ 9 | $ 2,450 | 1,688 | $ 900 | $ 701 | $ 1,092 | 69 | $ 1,800 | $ 1,231 | $ 1,250 | 400 | 4,220 | 2,762 | 4,681 |
Charge-offs | (4,189) | (50) | |||||||||||||
Recoveries | 569 | 238 | 169 | ||||||||||||
Ending Balance | 19,000 | 18,400 | 15,400 | 19,000 | 18,400 | 15,400 | |||||||||
Residential Properties | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 9,715 | 6,669 | 6,799 | 9,715 | 6,669 | 6,799 | |||||||||
Provision for loan losses | (499) | 3,046 | (130) | ||||||||||||
Ending Balance | 9,216 | 9,715 | 6,669 | 9,216 | 9,715 | 6,669 | |||||||||
Commercial Real Estate | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 4,399 | 2,983 | 1,813 | 4,399 | 2,983 | 1,813 | |||||||||
Provision for loan losses | 359 | 1,416 | 1,051 | ||||||||||||
Charge-offs | (211) | (50) | |||||||||||||
Recoveries | 169 | ||||||||||||||
Ending Balance | 4,547 | 4,399 | 2,983 | 4,547 | 4,399 | 2,983 | |||||||||
Land and Construction | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 395 | 233 | 103 | 395 | 233 | 103 | |||||||||
Provision for loan losses | (4) | 162 | 130 | ||||||||||||
Ending Balance | 391 | 395 | 233 | 391 | 395 | 233 | |||||||||
Commercial and Industrial Loans | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 3,624 | 5,227 | 1,649 | 3,624 | 5,227 | 1,649 | |||||||||
Provision for loan losses | 4,413 | (1,841) | 3,578 | ||||||||||||
Charge-offs | (3,978) | ||||||||||||||
Recoveries | 569 | 238 | |||||||||||||
Ending Balance | 4,628 | 3,624 | 5,227 | 4,628 | 3,624 | 5,227 | |||||||||
Consumer Loans | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | $ 267 | $ 288 | $ 236 | 267 | 288 | 236 | |||||||||
Provision for loan losses | (49) | (21) | 52 | ||||||||||||
Ending Balance | $ 218 | $ 267 | $ 288 | $ 218 | $ 267 | $ 288 |
Allowance for Loan Losses - Bal
Allowance for Loan Losses - Balance in Allowance for Loan Losses and Recorded Investment in Loans by Impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Impaired [Line Items] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | $ 416 | $ 909 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 18,584 | 17,491 |
Total Allowance for Loan Losses | 19,000 | 18,400 |
Unaccreted Credit Component Other Loans | 4,223 | 3,005 |
Loans, Individually Evaluated for Impairment | 12,778 | 13,436 |
Loans, Collectively Evaluated for Impairment | 4,263,764 | 3,600,909 |
Total loans | 4,283,623 | 3,655,262 |
Unaccreted Credit Component Other Loans | 619,895 | 260,577 |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable Impaired [Line Items] | ||
Loans, Purchased Impaired | 7,081 | 3,757 |
Residential Properties | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 9,216 | 9,715 |
Total Allowance for Loan Losses | 9,216 | 9,715 |
Unaccreted Credit Component Other Loans | 1,724 | 248 |
Loans, Individually Evaluated for Impairment | 651 | |
Loans, Collectively Evaluated for Impairment | 2,861,112 | 2,581,245 |
Total loans | 2,861,763 | 2,581,245 |
Unaccreted Credit Component Other Loans | 241,698 | 26,605 |
Commercial Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | 126 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 4,421 | 4,399 |
Total Allowance for Loan Losses | 4,547 | 4,399 |
Unaccreted Credit Component Other Loans | 1,779 | 1,449 |
Loans, Individually Evaluated for Impairment | 2,871 | 4,037 |
Loans, Collectively Evaluated for Impairment | 860,835 | 691,632 |
Total loans | 869,169 | 696,748 |
Unaccreted Credit Component Other Loans | 275,516 | 168,057 |
Commercial Real Estate | Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable Impaired [Line Items] | ||
Loans, Purchased Impaired | 5,463 | 1,079 |
Commercial and Industrial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | 290 | 909 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 4,338 | 2,715 |
Total Allowance for Loan Losses | 4,628 | 3,624 |
Unaccreted Credit Component Other Loans | 633 | 1,204 |
Loans, Individually Evaluated for Impairment | 8,559 | 9,399 |
Loans, Collectively Evaluated for Impairment | 440,437 | 299,539 |
Total loans | 449,805 | 310,779 |
Unaccreted Credit Component Other Loans | 61,183 | 62,849 |
Commercial and Industrial Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable Impaired [Line Items] | ||
Loans, Purchased Impaired | 809 | 1,841 |
Consumer Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 218 | 267 |
Total Allowance for Loan Losses | 218 | 267 |
Unaccreted Credit Component Other Loans | 3 | 100 |
Loans, Collectively Evaluated for Impairment | 22,699 | 29,330 |
Total loans | 22,699 | 29,330 |
Unaccreted Credit Component Other Loans | 366 | 2,899 |
Land | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 391 | 395 |
Total Allowance for Loan Losses | 391 | 395 |
Unaccreted Credit Component Other Loans | 84 | 4 |
Loans, Individually Evaluated for Impairment | 697 | |
Loans, Collectively Evaluated for Impairment | 78,681 | 837 |
Total loans | 80,187 | 37,160 |
Unaccreted Credit Component Other Loans | 41,132 | 167 |
Land | Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable Impaired [Line Items] | ||
Loans, Purchased Impaired | $ 809 | $ 837 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Allowance of purchase impaired loans | 0.68% | 1.15% | |
Additional allowance on credit impaired loans | $ 400,000 | $ 200,000 | |
Interest income recognized on impaired loans | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses - Ris
Allowance for Loan Losses - Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 4,283,623 | $ 3,655,262 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,861,763 | 2,581,245 |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 869,169 | 696,748 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 449,805 | 310,779 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 22,699 | 29,330 |
Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 80,187 | 37,160 |
Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,236,469 | 3,623,281 |
Pass | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,857,666 | 2,578,773 |
Pass | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 845,672 | 680,449 |
Pass | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 431,751 | 298,408 |
Pass | Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 22,699 | 29,330 |
Pass | Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 78,681 | 36,321 |
Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 24,193 | 7,383 |
Special Mention | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,446 | 192 |
Special Mention | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 13,024 | 6,326 |
Special Mention | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 7,723 | 865 |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 10,183 | 11,162 |
Substandard | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,280 | |
Substandard | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 7,602 | 5,936 |
Substandard | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,772 | 2,107 |
Substandard | Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 809 | 839 |
Impaired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 12,778 | 13,436 |
Impaired | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 651 | |
Impaired | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,871 | 4,037 |
Impaired | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 8,559 | $ 9,399 |
Impaired | Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 697 |
Allowance for Loan Losses - Ind
Allowance for Loan Losses - Individual Evaluation of Impaired Loans and Related Allowance (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Modifications [Line Items] | ||
Unpaid Principal Balance, With No Allowance Recorded | $ 9,498 | $ 4,287 |
Recorded Investment, With No Allowance Recorded | 9,498 | 4,287 |
Unpaid Principal Balance, With an Allowance Recorded | 3,280 | 9,149 |
Recorded Investment, With an Allowance Recorded | 3,280 | 9,149 |
Related Allowance, With an Allowance Recorded | 416 | 909 |
Land | ||
Financing Receivable Modifications [Line Items] | ||
Unpaid Principal Balance, With No Allowance Recorded | 697 | |
Recorded Investment, With No Allowance Recorded | 697 | |
Residential Properties | ||
Financing Receivable Modifications [Line Items] | ||
Unpaid Principal Balance, With No Allowance Recorded | 651 | |
Recorded Investment, With No Allowance Recorded | 651 | |
Commercial Real Estate | ||
Financing Receivable Modifications [Line Items] | ||
Unpaid Principal Balance, With No Allowance Recorded | 1,607 | 4,037 |
Recorded Investment, With No Allowance Recorded | 1,607 | 4,037 |
Unpaid Principal Balance, With an Allowance Recorded | 1,264 | |
Recorded Investment, With an Allowance Recorded | 1,264 | |
Related Allowance, With an Allowance Recorded | 126 | |
Commercial and Industrial Loans | ||
Financing Receivable Modifications [Line Items] | ||
Unpaid Principal Balance, With No Allowance Recorded | 6,543 | 250 |
Recorded Investment, With No Allowance Recorded | 6,543 | 250 |
Unpaid Principal Balance, With an Allowance Recorded | 2,016 | 9,149 |
Recorded Investment, With an Allowance Recorded | 2,016 | 9,149 |
Related Allowance, With an Allowance Recorded | $ 290 | $ 909 |
Allowance for Loan Losses - Wei
Allowance for Loan Losses - Weighted Average Annualized Balance of Recorded Investment and Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | $ 12,852 | $ 9,229 | $ 5,899 |
Interest Income after Impairment | 90 | 75 | 51 |
Residential Properties | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 276 | 1,323 | 1,970 |
Interest Income after Impairment | 20 | 14 | |
Commercial Real Estate | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 3,459 | 2,403 | 2,252 |
Interest Income after Impairment | 90 | 50 | 17 |
Commercial and Industrial Loans | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | $ 9,117 | 5,503 | 1,673 |
Interest Income after Impairment | $ 5 | 20 | |
Consumer Loans | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | $ 4 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Leasehold improvements and artwork | $ 7,268 | $ 5,107 |
Information technology equipment | 7,031 | 7,180 |
Furniture and fixtures | 3,286 | 3,181 |
Land and auto | 805 | |
Total | 18,390 | 15,468 |
Accumulated depreciation and amortization | (9,245) | (8,887) |
Net | $ 9,145 | $ 6,581 |
Real Estate Owned (Details)
Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | ||
Beginning Balance | $ 2,920 | $ 1,734 |
Loans transferred to REO | (93) | 1,520 |
REO acquired in merger | 565 | |
Dispositions of REO | (2,577) | (334) |
Ending Balance | $ 815 | $ 2,920 |
Loan Sales And Mortgage Servi_2
Loan Sales And Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Gain on sale of loans | $ 419 | $ 7,029 | $ 7,812 |
FFB | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Sale of multifamily loans through securitization | 674,000 | 453,000 | 41,000 |
Gain on sale of loans | 400 | 7,000 | 600 |
Mortgage servicing rights | 6,400 | 4,800 | |
Loans serviced for others | 1,300,000 | 745,000 | |
Servicing fees earned on loans | $ 1,100 | $ 700 | 300 |
FFB | Freddie Mac | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Sale of multifamily loans through securitization | 265,000 | ||
Gain on sale of loans | $ 7,200 |
Deposits - Summary of Outstandi
Deposits - Summary of Outstanding Balance of Deposits and Average Rates (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Demand deposits, Noninterest-bearing | $ 1,074,661 | $ 1,097,196 |
Demand deposits, Interest-bearing | 317,380 | 235,294 |
Money market and savings | 1,190,717 | 1,210,240 |
Certificates of deposits | 1,950,210 | 900,797 |
Total | $ 4,532,968 | $ 3,443,527 |
Demand deposits, Noninterest-bearing, Weighted Average Rate | 0.00% | |
Demand deposits, Interest-bearing, Weighted Average Rate | 0.798% | 0.411% |
Money market and savings, Weighted Average Rate | 1.115% | 0.84% |
Certificates of deposits, Weighted Average Rate | 2.142% | 1.189% |
Total, Weighted Average Rate | 1.27% | 0.634% |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Certificates of deposits of $250,000 or more, maturities within one year | $ 332 | $ 230 |
Certificates of deposits of $250,000 or more, maturities after one year | 28 | 58 |
Certificates of deposits of $250,000 or more, total | 360 | 288 |
Certificates of deposit of less than $ 250,000, maturities within one year | 1,500 | 543 |
Certificates of deposit of less than $ 250,000, maturities after one year | 53 | 70 |
Certificates of deposit of less than $250,000, total | $ 1,600 | $ 613 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)Institution | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 31, 2019 | Jan. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Overnight FHLB advances | $ 703,000,000 | $ 628,000,000 | |||
Long-term line of credit | 0 | ||||
FHLB advances interest rates | 1.41% | ||||
Loans pledged as collateral | 3,000,000,000 | ||||
Federal Home Loan Bank, maximum borrowing capacity | 2,200,000,000 | ||||
FHLB advances | 703,000,000 | ||||
Federal Home Loan Bank, additional credit available | $ 198,000,000 | ||||
Total risk based capital ratio | 9.875% | ||||
Unsecured debt | $ 120,000,000 | ||||
Number of financial institutions | Institution | 5 | ||||
Federal Home Loan Bank unused lines of credit | $ 1,500,000 | ||||
FHLB, average daily balance of borrowings outstanding | 557,000,000 | 499,000,000 | $ 507,000,000 | ||
Secured debt | 69,000,000 | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Unsecured debt | 20,000,000 | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Unsecured debt | $ 25,000,000 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit, borrowing capacity | $ 75,000,000 | ||||
Line of credit maturity period | 5 years | ||||
Line of credit convenant compliance | As of December 31, 2018, FFI was not in compliance with a covenant on this loan agreement that requires the Company to maintain a minimum total risk based capital ratio of 11.00%. At December 31, 2018, FFI had a total risk based capital ratio of 10.99% | ||||
Minimum total risk based capital ratio | 11.00% | ||||
Total risk based capital ratio | 10.99% | ||||
Revolving Credit Facility | 90 Day LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument basis point rate | 3.50% | ||||
FFI | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit | $ 5,000,000 | $ 50,000,000 | |||
Line of credit facility, Interest rate | 5.90% | ||||
Minimum total risk based capital ratio | 8.00% | 8.00% | |||
Total risk based capital ratio | 11.16% | 12.61% | |||
Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
FHLB advances interest rates | 2.56% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsidiary Sale Of Stock [Line Items] | ||||
Cash and cash equivalents | $ 67,312 | $ 120,394 | $ 597,946 | $ 215,748 |
FFI | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Cash and cash equivalents | $ 6,728 | $ 12,664 | $ 6,318 | $ 42,151 |
Condition for dividend declareble and payable | FFI may only declare and pay a dividend if the total amount of dividends and stock repurchases during the current twelve months does not exceed 50% of FFI’s net income for the same twelve month period. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) | Jan. 18, 2017 | Dec. 31, 2016shares |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Stock split, conversion ratio | 2 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from computation of earnings per share | 6,588 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net income, Basic | $ 42,958 | $ 27,582 | $ 23,303 | ||||||||||||
Basic common shares outstanding | 42,092,361 | 34,482,630 | 32,365,800 | ||||||||||||
Earnings per share, Basic | $ 0.32 | $ 0.33 | $ 0.13 | $ 0.23 | $ 0.06 | $ 0.28 | $ 0.29 | $ 0.19 | $ 0.20 | $ 0.30 | $ 0.10 | $ 0.12 | $ 1.02 | $ 0.80 | $ 0.72 |
Net income, Diluted | $ 42,958 | $ 27,582 | $ 23,303 | ||||||||||||
Effect of options, restricted stock and contingent shares issuable | 474,747 | 848,429 | 1,106,016 | ||||||||||||
Diluted common shares outstanding | 42,567,108 | 35,331,059 | 33,471,816 | ||||||||||||
Earnings per share, Diluted | $ 0.31 | $ 0.33 | $ 0.12 | $ 0.23 | $ 0.06 | $ 0.27 | $ 0.28 | $ 0.18 | $ 0.19 | $ 0.29 | $ 0.10 | $ 0.11 | $ 1.01 | $ 0.78 | $ 0.70 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2010 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2007 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Future grant of options purchased | 1,300,282 | |||||
Increase in number of shares for issuance | 580,000 | |||||
Stock–based compensation expense | $ 2,637 | $ 1,838 | $ 899 | |||
Expense related to RSUs | 2,600 | |||||
Stock options exercised, intrinsic value | 3,200 | 11,700 | 3,800 | |||
Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Fair value of shares vested | 2,800 | 1,300 | 800 | |||
Fair value of shares issued | 2,800 | $ 1,300 | $ 800 | |||
Unrecognized compensation costs | $ 500 | |||||
Executive Officers, Other Key Employees and Directors | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares available for grant | 750,000 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options Granted | |||
Outstanding at beginning of period | 900,884 | 1,972,884 | 2,716,834 |
Options exercised | (308,334) | (1,072,000) | (690,592) |
Options forfeited | (53,358) | ||
Outstanding at end of period | 592,550 | 900,884 | 1,972,884 |
Options exercisable | 592,550 | 900,884 | 1,945,032 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period | $ 7.73 | $ 6.34 | $ 6.35 |
Options exercised | 7.64 | 5.18 | 6.17 |
Options forfeited | 9.18 | ||
Outstanding at end of period | 7.78 | 7.73 | 6.34 |
Options exercisable | $ 7.78 | $ 7.73 | $ 6.30 |
Weighted-Average Remaining Contractual Term | |||
Outstanding at end of period | 2 years 10 months 17 days | 3 years 4 months 13 days | 2 years 5 months 12 days |
Options exercisable | 7 years 9 months 10 days | 3 years 4 months 13 days | 2 years 4 months 20 days |
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 3,012 | $ 9,738 | $ 15,601 |
Options exercisable | $ 3,012 | $ 9,738 | $ 15,457 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of RSUs Issued under Equity Incentive Plan (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Nonvested at beginning of period, Shares | 149,766 | 117,308 | 134,728 |
New RSUs, Shares | 119,438 | 110,463 | 50,568 |
Shares vested and issued, Shares | (154,884) | (78,005) | (67,988) |
Nonvested at end of period, Shares | 114,320 | 149,766 | 117,308 |
Weighted Average Grant Date Fair Value | |||
Nonvested at end of period, Shares | $ 14.73 | $ 10.19 | $ 9.93 |
New RSUs, Weighted-Average Grant Date Fair Value | 18.03 | 17.62 | 11.15 |
Shares vested and issued, Weighted-Average Grant Date Fair Value | 15.23 | 12.01 | 10.39 |
Nonvested at end of period, Weighted-Average Grant Date Fair Value | $ 17.51 | $ 14.73 | $ 10.19 |
401(k) Profit Sharing Plan - Ad
401(k) Profit Sharing Plan - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Profit sharing plan information | The Company’s employees participate in the Company’s 401(k) profit sharing plan (the “401k Plan”) that covers all employees eighteen years of age or older who have completed three months of employment. | ||
Employee contribution on compensation, maximum | 100.00% | ||
Percentage of employees' annual contribution, eligible for employers match | 100.00% | 50.00% | 50.00% |
Additional percentage of employees' annual contribution, eligible for employers match | 50.00% | ||
Percentage of employees' annual contribution matched | 3.00% | 5.00% | 5.00% |
Additional percentage of employees' annual contribution matched | 2.00% | ||
Employer contribution amount | $ 1,700,000 | $ 900,000 | $ 700,000 |
Deferred Profit Sharing | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contribution amount | $ 0 | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Tax cuts and jobs act of 2017 income tax expense (benefit) | $ 5,400 | ||
Federal statutory income tax rate | 21.00% | 35.00% | 35.00% |
Operating Loss Carryforwards | $ 8,200,000 | ||
Desert Commercial Bank | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | $ 13,400,000 | ||
Operating Loss Carryforwards Utilization Period | 20 years | ||
Operating Loss Carryforwards, Expiration Date, Year | 2,032 | ||
Operating Loss Carryforwards, Limitations on Use | operating loss carryforwards are subject to limitation under Section 382 of the Internal Revenue Service Code and expire in 2032 | ||
Pacific Rim Bank | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | $ 3,900,000 | ||
Premier Business Bank | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | $ 3,300,000 | ||
Operating Loss Carryforwards, Expiration Date, Year | 2,035 | ||
Community 1st Bancorp | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | $ 700,000 | ||
Operating Loss Carryforwards, Expiration Date, Year | 2,037 | ||
Desert Commercial Bank, Pacific Rim Bank, Community First Bancorp and Premier Business Bank | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | $ 10,100,000 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current expense: | |||||||||||||||
Federal | $ 10,168 | $ 14,122 | $ 10,235 | ||||||||||||
State | 5,768 | 4,384 | 3,459 | ||||||||||||
Deferred expense (benefit): | |||||||||||||||
Federal | 919 | 4,677 | 1,263 | ||||||||||||
State | 273 | (166) | 74 | ||||||||||||
Total | $ 5,726 | $ 6,147 | $ 1,657 | $ 3,598 | $ 10,767 | $ 4,629 | $ 4,671 | $ 2,950 | $ 4,082 | $ 5,800 | $ 2,407 | $ 2,742 | $ 17,128 | $ 23,017 | $ 15,031 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Income Taxes and Effective Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||||||
Income before taxes | $ 19,855 | $ 20,854 | $ 6,803 | $ 12,574 | $ 13,040 | $ 14,209 | $ 14,287 | $ 9,063 | $ 10,599 | $ 15,475 | $ 5,731 | $ 6,529 | $ 60,086 | $ 50,599 | $ 38,334 |
Federal statutory income tax, amount | 12,618 | 17,710 | 13,417 | ||||||||||||
State tax, net of Federal benefit, amount | 4,876 | 3,313 | 2,510 | ||||||||||||
Windfall benefit - exercise of stock options, amount | (816) | (3,762) | (1,025) | ||||||||||||
Change in federal rate, amount | 5,414 | ||||||||||||||
Other items, net, amount | 450 | 342 | 129 | ||||||||||||
Total | $ 5,726 | $ 6,147 | $ 1,657 | $ 3,598 | $ 10,767 | $ 4,629 | $ 4,671 | $ 2,950 | $ 4,082 | $ 5,800 | $ 2,407 | $ 2,742 | $ 17,128 | $ 23,017 | $ 15,031 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||||||
Federal statutory income tax rate | 21.00% | 35.00% | 35.00% | ||||||||||||
State tax, net of Federal benefit, rate | 8.12% | 6.55% | 6.55% | ||||||||||||
Windfall benefit - exercise of stock options, rate | (1.36%) | (7.43%) | (2.67%) | ||||||||||||
Change in federal rate | 10.70% | ||||||||||||||
Other items, net, rate | 0.75% | 0.68% | 0.34% | ||||||||||||
Effective income tax rate | 28.51% | 45.49% | 39.22% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets (liabilities) | ||
Allowance for loan and REO losses | $ 4,847 | $ 4,741 |
Operating loss carryforwards | 2,918 | 3,157 |
State taxes | 1,166 | 921 |
Stock-based compensation | 642 | 678 |
Market valuation: Acquired loans and REO | 5,695 | 2,505 |
Capital activities – mark to market | 103 | |
Accrued vacation | 561 | 418 |
Organizational expenses | 192 | 179 |
Core deposit intangible | (3,197) | (1,817) |
Prepaid expenses | (680) | (586) |
Depreciation | (672) | (833) |
Accumulated other comprehensive income | 476 | 2,105 |
Other | 1,200 | 675 |
Net deferred tax assets | $ 13,251 | $ 12,143 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Lease expense | $ 5.8 | $ 5.2 | $ 4.9 |
Commitment and Contingencies _2
Commitment and Contingencies - Future Minimum Lease Commitments under All Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating lease due in 2019 | $ 6,075 |
Operating lease due in 2020 | 5,785 |
Operating lease due in 2021 | 5,507 |
Operating lease due in 2022 | 4,573 |
Operating lease due in 2023 and after | 3,842 |
Operating lease due, total | $ 25,782 |
Commitment and Contingencies _3
Commitment and Contingencies - Off Balance Sheet Arrangements of Bank (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments to fund new loans | $ 27,688 | $ 44,561 |
Commitments to fund under existing loans, lines of credit | 352,148 | 211,712 |
Commitments under standby letters of credit | $ 12,001 | $ 2,352 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018USD ($)Agreement | Jun. 30, 2018USD ($)Agreement | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |
Derivatives Fair Value [Line Items] | ||||||
Derivative instrument, notional amounts | $ 0 | $ 0 | ||||
Number of swap agreements | Agreement | 2 | 4 | ||||
Amortized cost basis of closed portfolio last layer | $ 752 | $ 752 | ||||
Swap Agreements | ||||||
Derivatives Fair Value [Line Items] | ||||||
Derivative instrument, notional amounts | 500 | $ 652 | 500 | $ 228 | ||
Reduction in interest income | 0.8 | |||||
Swap at close, value | $ 5.9 | $ 5.9 | $ 2.4 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Derivatives Designated as Hedging Instruments (Details) - Interest Rate Contracts $ in Thousands | Dec. 31, 2018USD ($) |
Derivatives Fair Value [Line Items] | |
Derivative Asset, Type [Extensible List] | us-gaap:OtherAssetsMember |
Derivative liabilities, fair value | $ 5,175 |
Derivative Liability, Type [Extensible List] | us-gaap:OtherLiabilitiesMember |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Schedule of Fair Value Hedge Accounting on the Consolidated Income Statement (Details) - Interest Contracts - Fair Value Hedging - Interest Income - Loans $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative Instruments Gain Loss [Line Items] | |
Gain or (Loss) on fair value hedge instruments | $ 4,821 |
Derivatives Designated as Hedging Instruments | |
Derivative Instruments Gain Loss [Line Items] | |
Gain or (Loss) on fair value hedge instruments | $ 5,175 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Schedule of Amounts were Recorded on Balance Sheet Related to Cumulative Adjustments for Fair Value hedges (Details) - Loans Held For Sale - Derivatives Designated as Hedging Instruments $ in Thousands | Dec. 31, 2018USD ($) |
Derivative [Line Items] | |
Carrying Amount of the Hedged Item | $ 507,643 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | $ 4,821 |
Related Party Transactions - Re
Related Party Transactions - Related Party Loans (Details) - Directors, executive officers and affiliates - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Balance, January 1 | $ 5,910 | $ 5,910 |
New loans and advances | ||
Principal payments received | $ (5,910) | |
Balance, December 31 | $ 5,910 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)ExecutiveOfficer | Dec. 31, 2017USD ($)ExecutiveOfficer | Dec. 31, 2016USD ($)ExecutiveOfficer | |
Related Party Transaction [Line Items] | |||
Gain on sale of loans | $ 419 | $ 7,029 | $ 7,812 |
Directors, executive officers and affiliates | |||
Related Party Transaction [Line Items] | |||
Interest earned from loans to related parties | 100 | 300 | 300 |
Deposits from related parties | 8,300 | 5,100 | |
Interest paid | 11 | 9 | $ 3 |
Assets under management | 29,500 | ||
Fees amount received | $ 100 | $ 100 | |
FFB | |||
Related Party Transaction [Line Items] | |||
Number Of Executive Officers | ExecutiveOfficer | 2 | 2 | 2 |
Minority interests of executive officers | $ 200 | $ 200 | $ 200 |
Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Deposits from related parties | 20,800 | ||
Interest paid | 400 | ||
Purchase of loans | 52,100 | 121,900 | 41,400 |
Gain on sale of loans | 200 | 1,100 | 600 |
Loans serviced for other financial institution | 205,000 | ||
Interest on loan | 200 | 200 | |
Loans and leases, participating sub debt offering | 15,000 | ||
Gain on loans and leases, participating sub debt offering | 800 | 100 | |
FFA | |||
Related Party Transaction [Line Items] | |||
Assets under management | 277,000 | 260,000 | |
Fees amount received | $ 400 | $ 400 | $ 400 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Capital and Capital Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Tier 1 risk-based capital ratio, Actual Ratio | 7.875% | |
Total risk-based capital ratio, Actual Ratio | 9.875% | |
FFI | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 capital ratio, Actual Amount | $ 460,600 | $ 366,236 |
Tier 1 leverage/(core) ratio, Actual Amount | 460,600 | 366,236 |
Tier 1 risk-based capital ratio, Actual Amount | 460,600 | 366,236 |
Total risk-based capital ratio, Actual Amount | $ 481,476 | $ 385,236 |
CET1 capital ratio, Actual Ratio | 10.67% | 11.99% |
Tier 1 leverage/(core) ratio, Actual Ratio | 8.39% | 8.44% |
Tier 1 risk-based capital ratio, Actual Ratio | 10.67% | 11.99% |
Total risk-based capital ratio, Actual Ratio | 11.16% | 12.61% |
CET1 capital ratio, For Capital Adequacy Purposes Amount | $ 194,179 | $ 137,435 |
Tier 1 leverage/(core) ratio, For Capital Adequacy Purposes Amount | 219,694 | 173,514 |
Tier 1 risk-based capital ratio, For Capital Adequacy Purposes Amount | 258,906 | 183,246 |
Total risk-based capital ratio, For Capital Adequacy Purposes Amount | $ 345,207 | $ 244,328 |
CET1 capital ratio, For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier 1 leverage/(core) ratio, For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 risk-based capital ratio, For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Total risk-based capital ratio, For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
FFA | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 capital ratio, Actual Amount | $ 453,248 | $ 398,709 |
Tier 1 leverage/(core) ratio, Actual Amount | 453,248 | 398,709 |
Tier 1 risk-based capital ratio, Actual Amount | 453,248 | 398,709 |
Total risk-based capital ratio, Actual Amount | $ 474,124 | $ 417,709 |
CET1 capital ratio, Actual Ratio | 10.51% | 13.07% |
Tier 1 leverage/(core) ratio, Actual Ratio | 8.26% | 9.20% |
Tier 1 risk-based capital ratio, Actual Ratio | 10.51% | 13.07% |
Total risk-based capital ratio, Actual Ratio | 10.99% | 13.69% |
CET1 capital ratio, For Capital Adequacy Purposes Amount | $ 194,058 | $ 137,290 |
Tier 1 leverage/(core) ratio, For Capital Adequacy Purposes Amount | 219,568 | 173,363 |
Tier 1 risk-based capital ratio, For Capital Adequacy Purposes Amount | 258,744 | 183,053 |
Total risk-based capital ratio, For Capital Adequacy Purposes Amount | $ 344,992 | $ 244,071 |
CET1 capital ratio, For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier 1 leverage/(core) ratio, For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 risk-based capital ratio, For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Total risk-based capital ratio, For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
CET1 capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount | $ 280,306 | $ 198,308 |
Tier 1 leverage/(core) ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount | 274,461 | 216,703 |
Tier 1 risk-based capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount | 344,992 | 244,071 |
Total risk-based capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount | $ 431,240 | $ 305,089 |
CET1 leverage ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier 1 leverage/(core) ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Tier 1 risk-based capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Total risk-based capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2016 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital buffer against risk weighted assets percentage | 0.625% | |
Capital buffer against risk weighted assets increasing percentage annually | 0.625% | |
Capital buffer against risk weighted assets cumulative | 2.50% | |
FFB | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 capital ratio, to be well-capitalized amount | $ 173 | |
Tier 1 leverage ratio, to be well-capitalized amount | 179 | |
Tier 1 risk-based capital ratio, to be well-capitalized amount | 108 | |
Excess total risk-based capital ratio, to be well-capitalized amount | $ 43 |
Regulatory Matters - Schedule_2
Regulatory Matters - Schedule of Minimum Capital Ratios Plus the Applicable Increment of the Capital Conservation (Details) | Dec. 31, 2018 |
Regulatory Capital Requirements [Abstract] | |
CET-1 to risk-weighted assets | 6.375% |
Tier 1 capital (i.e., CET-1 plus Additional Tier 1) to risk-weighted assets | 7.875% |
Total risk based capital ratio | 9.875% |
CET-1 to risk-weighted assets | 7.00% |
Tier 1 capital (i.e., CET-1 plus Additional Tier 1) to risk-weighted assets | 8.50% |
Total capital (i.e., Tier 1 plus Tier 2) to risk-weighted assets | 10.50% |
Other Expenses - Schedule of Pr
Other Expenses - Schedule of Professional Services and Marketing Costs and Other Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |||
Regulatory assessments | $ 3,652 | $ 2,677 | $ 2,224 |
Directors’ compensation expenses | 596 | 540 | $ 543 |
Acquisition expenses | $ 3,794 | $ 2,640 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) - Segment | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | |||
Reportable business segments | 2 | 2 | 2 |
Segment Reporting - Key Operati
Segment Reporting - Key Operating Results of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | $ 57,442 | $ 58,047 | $ 48,498 | $ 43,319 | $ 37,911 | $ 34,878 | $ 33,652 | $ 30,360 | $ 28,367 | $ 26,004 | $ 24,573 | $ 21,698 | $ 207,306 | $ 136,801 | $ 100,642 |
Interest expense | 16,077 | 14,321 | 12,247 | 9,051 | 6,686 | 6,438 | 5,757 | 4,302 | 3,363 | 2,841 | 2,652 | 2,337 | 51,696 | 23,183 | 11,193 |
Net interest income | 41,365 | 43,726 | 36,251 | 34,268 | 31,225 | 28,440 | 27,895 | 26,058 | 25,004 | 23,163 | 21,921 | 19,361 | 155,610 | 113,618 | 89,449 |
Provision for loan losses | 73 | 9 | 2,450 | 1,688 | 900 | 701 | 1,092 | 69 | 1,800 | 1,231 | 1,250 | 400 | 4,220 | 2,762 | 4,681 |
Noninterest income | 8,701 | 11,104 | 6,984 | 8,982 | 11,376 | 9,863 | 9,697 | 7,783 | 7,586 | 15,079 | 4,910 | 6,985 | 35,771 | 38,719 | 34,560 |
Noninterest expense | 30,138 | 33,967 | 33,982 | 28,988 | 28,661 | 23,393 | 22,213 | 24,709 | 20,191 | 21,536 | 19,850 | 19,417 | 127,075 | 98,976 | 80,994 |
Income before taxes on income | $ 19,855 | $ 20,854 | $ 6,803 | $ 12,574 | $ 13,040 | $ 14,209 | $ 14,287 | $ 9,063 | $ 10,599 | $ 15,475 | $ 5,731 | $ 6,529 | 60,086 | 50,599 | 38,334 |
Operating Segments | Banking | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 207,306 | 136,801 | 100,642 | ||||||||||||
Interest expense | 49,935 | 22,530 | 11,193 | ||||||||||||
Net interest income | 157,371 | 114,271 | 89,449 | ||||||||||||
Provision for loan losses | 4,220 | 2,762 | 4,681 | ||||||||||||
Noninterest income | 11,322 | 16,016 | 13,832 | ||||||||||||
Noninterest expense | 100,778 | 73,990 | 58,422 | ||||||||||||
Income before taxes on income | 63,695 | 53,535 | 40,178 | ||||||||||||
Operating Segments | Wealth Management | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Noninterest income | 25,247 | 23,556 | 21,348 | ||||||||||||
Noninterest expense | 21,670 | 20,469 | 19,232 | ||||||||||||
Income before taxes on income | 3,577 | 3,087 | 2,116 | ||||||||||||
Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest expense | 1,761 | 653 | |||||||||||||
Net interest income | (1,761) | (653) | |||||||||||||
Noninterest income | (798) | (853) | (620) | ||||||||||||
Noninterest expense | 4,627 | 4,517 | 3,340 | ||||||||||||
Income before taxes on income | $ (7,186) | $ (6,023) | $ (3,960) |
Segment Reporting - Financial P
Segment Reporting - Financial Position For Each of Our Business Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 67,312 | $ 120,394 | $ 597,946 | $ 215,748 |
Securities AFS | 809,569 | 519,364 | ||
Loans held for sale | 507,643 | 154,380 | ||
Loans, net | 4,274,669 | 3,645,327 | ||
Premises and equipment | 9,145 | 6,581 | ||
FHLB Stock | 20,307 | 19,060 | ||
Deferred taxes | 13,251 | 12,143 | ||
REO | 815 | 2,920 | 1,734 | |
Goodwill and intangibles | 99,482 | 33,576 | ||
Other assets | 38,219 | 27,440 | ||
Total Assets | 5,840,412 | 4,541,185 | ||
Deposits | 4,532,968 | 3,443,527 | ||
Borrowings | 708,000 | 678,000 | ||
Other liabilities | 40,260 | 24,707 | ||
Shareholders’ equity | 559,184 | 394,951 | $ 284,264 | $ 259,736 |
Total Liabilities and Shareholders’ Equity | 5,840,412 | 4,541,185 | ||
Operating Segments | Banking | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 67,148 | 120,261 | ||
Securities AFS | 809,569 | 519,364 | ||
Loans held for sale | 507,643 | 154,380 | ||
Loans, net | 4,274,669 | 3,645,327 | ||
Premises and equipment | 8,221 | 5,519 | ||
FHLB Stock | 20,307 | 19,060 | ||
Deferred taxes | 12,905 | 12,008 | ||
REO | 815 | 2,920 | ||
Goodwill and intangibles | 99,482 | 33,576 | ||
Other assets | 35,906 | 25,521 | ||
Total Assets | 5,836,665 | 4,537,936 | ||
Deposits | 4,544,168 | 3,460,465 | ||
Borrowings | 703,000 | 628,000 | ||
Intercompany balances | 3,689 | 3,301 | ||
Other liabilities | 34,886 | 18,646 | ||
Shareholders’ equity | 550,922 | 427,524 | ||
Total Liabilities and Shareholders’ Equity | 5,836,665 | 4,537,936 | ||
Operating Segments | Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 4,636 | 4,407 | ||
Premises and equipment | 788 | 926 | ||
Deferred taxes | 103 | 172 | ||
Other assets | 605 | 179 | ||
Total Assets | 6,132 | 5,684 | ||
Intercompany balances | 467 | 643 | ||
Other liabilities | 2,830 | 2,970 | ||
Shareholders’ equity | 2,835 | 2,071 | ||
Total Liabilities and Shareholders’ Equity | 6,132 | 5,684 | ||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 6,728 | 12,664 | ||
Premises and equipment | 136 | 136 | ||
Deferred taxes | 243 | |||
Deferred taxes | (37) | |||
Other assets | 555,465 | 431,335 | ||
Total Assets | 562,572 | 444,098 | ||
Borrowings | 5,000 | 50,000 | ||
Intercompany balances | (4,156) | (3,944) | ||
Other liabilities | 2,544 | 3,091 | ||
Shareholders’ equity | 559,184 | 394,951 | ||
Total Liabilities and Shareholders’ Equity | 562,572 | 444,098 | ||
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | (11,200) | (16,938) | ||
Other assets | (553,757) | (429,595) | ||
Total Assets | (564,957) | (446,533) | ||
Deposits | (11,200) | (16,938) | ||
Shareholders’ equity | (553,757) | (429,595) | ||
Total Liabilities and Shareholders’ Equity | $ (564,957) | $ (446,533) |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 57,442 | $ 58,047 | $ 48,498 | $ 43,319 | $ 37,911 | $ 34,878 | $ 33,652 | $ 30,360 | $ 28,367 | $ 26,004 | $ 24,573 | $ 21,698 | $ 207,306 | $ 136,801 | $ 100,642 |
Interest expense | 16,077 | 14,321 | 12,247 | 9,051 | 6,686 | 6,438 | 5,757 | 4,302 | 3,363 | 2,841 | 2,652 | 2,337 | 51,696 | 23,183 | 11,193 |
Net interest income | 41,365 | 43,726 | 36,251 | 34,268 | 31,225 | 28,440 | 27,895 | 26,058 | 25,004 | 23,163 | 21,921 | 19,361 | 155,610 | 113,618 | 89,449 |
Provision for loan losses | 73 | 9 | 2,450 | 1,688 | 900 | 701 | 1,092 | 69 | 1,800 | 1,231 | 1,250 | 400 | 4,220 | 2,762 | 4,681 |
Noninterest income | 8,701 | 11,104 | 6,984 | 8,982 | 11,376 | 9,863 | 9,697 | 7,783 | 7,586 | 15,079 | 4,910 | 6,985 | 35,771 | 38,719 | 34,560 |
Noninterest expense | 30,138 | 33,967 | 33,982 | 28,988 | 28,661 | 23,393 | 22,213 | 24,709 | 20,191 | 21,536 | 19,850 | 19,417 | 127,075 | 98,976 | 80,994 |
Income before taxes on income | 19,855 | 20,854 | 6,803 | 12,574 | 13,040 | 14,209 | 14,287 | 9,063 | 10,599 | 15,475 | 5,731 | 6,529 | 60,086 | 50,599 | 38,334 |
Taxes on income | 5,726 | 6,147 | 1,657 | 3,598 | 10,767 | 4,629 | 4,671 | 2,950 | 4,082 | 5,800 | 2,407 | 2,742 | 17,128 | 23,017 | 15,031 |
Net income | $ 14,129 | $ 14,707 | $ 5,146 | $ 8,976 | $ 2,273 | $ 9,580 | $ 9,616 | $ 6,113 | $ 6,517 | $ 9,675 | $ 3,324 | $ 3,787 | $ 42,958 | $ 27,582 | $ 23,303 |
Net income per share: | |||||||||||||||
Basic | $ 0.32 | $ 0.33 | $ 0.13 | $ 0.23 | $ 0.06 | $ 0.28 | $ 0.29 | $ 0.19 | $ 0.20 | $ 0.30 | $ 0.10 | $ 0.12 | $ 1.02 | $ 0.80 | $ 0.72 |
Diluted | $ 0.31 | $ 0.33 | $ 0.12 | $ 0.23 | $ 0.06 | $ 0.27 | $ 0.28 | $ 0.18 | $ 0.19 | $ 0.29 | $ 0.10 | $ 0.11 | $ 1.01 | $ 0.78 | $ 0.70 |
Parent Only Financial Stateme_3
Parent Only Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 67,312 | $ 120,394 | $ 597,946 | $ 215,748 |
Premises and equipment, net | 9,145 | 6,581 | ||
Deferred taxes | 13,251 | 12,143 | ||
Other assets | 38,219 | 27,440 | ||
Total Assets | 5,840,412 | 4,541,185 | ||
Liabilities: | ||||
Borrowings | 708,000 | 678,000 | ||
Total Liabilities | 5,281,228 | 4,146,234 | ||
Shareholders’ Equity | ||||
Common Stock | 44 | 38 | ||
Additional paid-in-capital | 431,832 | 314,501 | ||
Retained earnings | 128,461 | 85,503 | ||
Accumulated other comprehensive (loss), net of tax | (1,153) | (5,091) | ||
Total Shareholders’ Equity | 559,184 | 394,951 | 284,264 | 259,736 |
Total Liabilities and Shareholders’ Equity | 5,840,412 | 4,541,185 | ||
FFI | ||||
ASSETS | ||||
Cash and cash equivalents | 6,728 | 12,664 | $ 6,318 | $ 42,151 |
Premises and equipment, net | 136 | 136 | ||
Deferred taxes | 243 | |||
Deferred taxes | (37) | |||
Investment in subsidiaries | 553,757 | 429,595 | ||
Intercompany receivable | 4,156 | 3,944 | ||
Other assets | 1,708 | 1,740 | ||
Total Assets | 566,728 | 448,042 | ||
Liabilities: | ||||
Borrowings | 5,000 | 50,000 | ||
Accounts payable and other liabilities | 2,544 | 3,091 | ||
Total Liabilities | 7,544 | 53,091 | ||
Shareholders’ Equity | ||||
Common Stock | 44 | 38 | ||
Additional paid-in-capital | 431,832 | 314,501 | ||
Retained earnings | 128,461 | 85,503 | ||
Accumulated other comprehensive (loss), net of tax | (1,153) | (5,091) | ||
Total Shareholders’ Equity | 559,184 | 394,951 | ||
Total Liabilities and Shareholders’ Equity | $ 566,728 | $ 448,042 |
Parent Only Financial Stateme_4
Parent Only Financial Statements - Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest expense—borrowings | $ 12,920 | $ 5,740 | $ 2,277 | ||||||||||||
Noninterest income: | |||||||||||||||
Other income | 6,604 | 4,980 | 3,407 | ||||||||||||
Total noninterest income | $ 8,701 | $ 11,104 | $ 6,984 | $ 8,982 | $ 11,376 | $ 9,863 | $ 9,697 | $ 7,783 | $ 7,586 | $ 15,079 | $ 4,910 | $ 6,985 | 35,771 | 38,719 | 34,560 |
Noninterest expense: | |||||||||||||||
Compensation and benefits | 67,508 | 56,558 | 48,574 | ||||||||||||
Occupancy and depreciation | 19,779 | 15,396 | 11,978 | ||||||||||||
Professional services and marketing costs | 8,583 | 7,687 | 9,825 | ||||||||||||
Other expenses | 16,128 | 12,294 | 8,938 | ||||||||||||
Total noninterest expense | 30,138 | 33,967 | 33,982 | 28,988 | 28,661 | 23,393 | 22,213 | 24,709 | 20,191 | 21,536 | 19,850 | 19,417 | 127,075 | 98,976 | 80,994 |
Income before taxes on income | 19,855 | 20,854 | 6,803 | 12,574 | 13,040 | 14,209 | 14,287 | 9,063 | 10,599 | 15,475 | 5,731 | 6,529 | 60,086 | 50,599 | 38,334 |
Taxes on income | 5,726 | 6,147 | 1,657 | 3,598 | 10,767 | 4,629 | 4,671 | 2,950 | 4,082 | 5,800 | 2,407 | 2,742 | 17,128 | 23,017 | 15,031 |
Net income | $ 14,129 | $ 14,707 | $ 5,146 | $ 8,976 | $ 2,273 | $ 9,580 | $ 9,616 | $ 6,113 | $ 6,517 | $ 9,675 | $ 3,324 | $ 3,787 | 42,958 | 27,582 | 23,303 |
FFI | |||||||||||||||
Interest expense—borrowings | 1,761 | 653 | |||||||||||||
Noninterest income: | |||||||||||||||
Earnings from investment in subsidiaries | 48,153 | 31,547 | 25,498 | ||||||||||||
Other income | 194 | ||||||||||||||
Total noninterest income | 48,347 | 31,547 | 25,498 | ||||||||||||
Noninterest expense: | |||||||||||||||
Compensation and benefits | 1,395 | 1,302 | 971 | ||||||||||||
Occupancy and depreciation | 197 | 197 | 96 | ||||||||||||
Professional services and marketing costs | 2,790 | 2,741 | 1,929 | ||||||||||||
Other expenses | 1,237 | 1,130 | 964 | ||||||||||||
Total noninterest expense | 5,619 | 5,370 | 3,960 | ||||||||||||
Income before taxes on income | 40,967 | 25,524 | 21,538 | ||||||||||||
Taxes on income | (1,991) | (2,058) | (1,765) | ||||||||||||
Net income | $ 42,958 | $ 27,582 | $ 23,303 |
Parent Only Financial Stateme_5
Parent Only Financial Statements - Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 14,129 | $ 14,707 | $ 5,146 | $ 8,976 | $ 2,273 | $ 9,580 | $ 9,616 | $ 6,113 | $ 6,517 | $ 9,675 | $ 3,324 | $ 3,787 | $ 42,958 | $ 27,582 | $ 23,303 |
Other comprehensive income (loss): | |||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | 5,567 | 1,717 | (6,697) | ||||||||||||
Other comprehensive income (loss) before tax | 5,567 | 1,717 | (6,697) | ||||||||||||
Income tax (expense) benefit related to items of other comprehensive income | (1,629) | (707) | 1,961 | ||||||||||||
Other comprehensive income (loss) | 3,938 | 1,010 | (4,736) | ||||||||||||
Less: Reclassification adjustment for gains (loss) included in net earnings | (1,307) | ||||||||||||||
Income tax (expense) benefit related to reclassification adjustment | 512 | ||||||||||||||
Reclassification adjustment for gains included in net earnings, net of tax | (795) | ||||||||||||||
Other comprehensive income (loss), net of tax | 3,938 | 1,010 | (3,941) | ||||||||||||
Total comprehensive income | 46,896 | 28,592 | 19,362 | ||||||||||||
FFI | |||||||||||||||
Net income | 42,958 | 27,582 | 23,303 | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | 5,567 | 1,717 | (6,697) | ||||||||||||
Other comprehensive income (loss) before tax | 5,567 | 1,717 | (6,697) | ||||||||||||
Income tax (expense) benefit related to items of other comprehensive income | (1,629) | (707) | 2,122 | ||||||||||||
Other comprehensive income (loss) | 3,938 | 1,010 | (4,575) | ||||||||||||
Less: Reclassification adjustment for gains (loss) included in net earnings | 1,043 | ||||||||||||||
Income tax (expense) benefit related to reclassification adjustment | (409) | ||||||||||||||
Reclassification adjustment for gains included in net earnings, net of tax | 634 | ||||||||||||||
Other comprehensive income (loss), net of tax | 3,938 | 1,010 | (3,941) | ||||||||||||
Total comprehensive income | $ 46,896 | $ 28,592 | $ 19,362 |
Parent Only Financial Stateme_6
Parent Only Financial Statements - Statements of Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||||||||||||||
Net income | $ 14,129 | $ 14,707 | $ 5,146 | $ 8,976 | $ 2,273 | $ 9,580 | $ 9,616 | $ 6,113 | $ 6,517 | $ 9,675 | $ 3,324 | $ 3,787 | $ 42,958 | $ 27,582 | $ 23,303 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||
Stock–based compensation expense | 2,637 | 1,838 | 899 | ||||||||||||
Deferred tax liability (benefit) | 1,192 | 4,511 | 1,337 | ||||||||||||
Increase in other assets | (3,578) | (1,541) | (2,089) | ||||||||||||
Increase (decrease) in accounts payable and other liabilities | 4,436 | 7,106 | (323) | ||||||||||||
Net cash provided by operating activities | 50,981 | 37,872 | 19,770 | ||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||
Purchase of premises and equipment | (2,710) | (2,235) | (5,935) | ||||||||||||
Net cash used in investing activities | (679,550) | (568,981) | (1,000,458) | ||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||
Proceeds from the sale of stock, net | 13,698 | 28,386 | 4,267 | ||||||||||||
Repurchase of stock | (497) | ||||||||||||||
Net cash provided by financing activities | 575,487 | 53,557 | 1,362,886 | ||||||||||||
Increase (decrease) in cash and cash equivalents | (53,082) | (477,552) | 382,198 | ||||||||||||
Cash and cash equivalents at beginning of year | 120,394 | 597,946 | 215,748 | 120,394 | 597,946 | 215,748 | |||||||||
Cash and cash equivalents at end of year | 67,312 | 120,394 | 597,946 | 67,312 | 120,394 | 597,946 | |||||||||
FFI | |||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||
Net income | 42,958 | 27,582 | 23,303 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||
Earnings from investment in subsidiaries | (48,153) | (31,547) | (25,498) | ||||||||||||
Stock–based compensation expense | 65 | 61 | 78 | ||||||||||||
Deferred tax liability (benefit) | (280) | (37) | 296 | ||||||||||||
Increase in other assets | 32 | (29) | (1,464) | ||||||||||||
Increase (decrease) in accounts payable and other liabilities | (547) | 3,161 | (1,102) | ||||||||||||
Net cash provided by operating activities | (5,925) | (809) | (4,387) | ||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||
Investment in subsidiaries | (72,845) | (40,000) | |||||||||||||
Dividend from subsidiary | 32,000 | 2,000 | 5,000 | ||||||||||||
Purchase of premises and equipment | (24) | ||||||||||||||
Net cash used in investing activities | 32,000 | (70,845) | (35,024) | ||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||
Proceeds from borrowings | 50,000 | ||||||||||||||
Paydowns of borrowings | (45,000) | ||||||||||||||
Proceeds from the sale of stock, net | 13,698 | 28,386 | 4,267 | ||||||||||||
Repurchase of stock | (497) | ||||||||||||||
Intercompany accounts, net decrease (increase) | (212) | (386) | (689) | ||||||||||||
Net cash provided by financing activities | (32,011) | 78,000 | 3,578 | ||||||||||||
Increase (decrease) in cash and cash equivalents | (5,936) | 6,346 | (35,833) | ||||||||||||
Cash and cash equivalents at beginning of year | $ 12,664 | $ 6,318 | $ 42,151 | 12,664 | 6,318 | 42,151 | |||||||||
Cash and cash equivalents at end of year | $ 6,728 | $ 12,664 | $ 6,318 | $ 6,728 | $ 12,664 | $ 6,318 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event | Jan. 29, 2019$ / shares |
Subsequent Event [Line Items] | |
Dividends payable, date declared | Jan. 29, 2019 |
Dividends payable, amount per share | $ 0.05 |
Dividends payable, date to be paid | Mar. 15, 2019 |
Dividends payable, date of reord | Mar. 1, 2019 |