Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PCB Bancorp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 15,934,059 | |
Amendment Flag | false | |
Entity Central Index Key | 0001423869 | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Transition Period | true | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 19,080 | $ 24,121 |
Interest-bearing deposits in other financial institutions | 114,205 | 138,152 |
Total cash and cash equivalents | 133,285 | 162,273 |
Securities available-for-sale, at fair value | 142,539 | 146,991 |
Securities held-to-maturity, at amortized cost (fair value of $22,813 at June 30, 2019 and $21,152 at December 31, 2018) | 22,685 | 21,760 |
Total investment securities | 165,224 | 168,751 |
Loans held-for-sale | 440 | 5,781 |
Loans held-for-investment, net of deferred loan costs (fees) | 1,395,557 | 1,338,682 |
Allowance for loan losses | (13,328) | (13,167) |
Net loans held-for-investment | 1,382,229 | 1,325,515 |
Premises and equipment, net | 4,334 | 4,588 |
Federal Home Loan Bank and other restricted stock, at cost | 8,345 | 7,433 |
Other real estate owned, net | 395 | 0 |
Deferred tax assets, net | 3,241 | 3,377 |
Servicing assets | 7,230 | 7,666 |
Operating lease assets | 10,105 | 0 |
Accrued interest receivable and other assets | 11,658 | 11,644 |
Total assets | 1,726,486 | 1,697,028 |
Deposits: | ||
Noninterest-bearing demand | 339,603 | 329,270 |
Savings, NOW and money market accounts | 331,357 | 313,610 |
Time deposits of $250,000 or less | 480,786 | 519,634 |
Time deposits of more than $250,000 | 294,780 | 281,239 |
Total deposits | 1,446,526 | 1,443,753 |
Federal Home Loan Bank advances | 35,000 | 30,000 |
Operating lease liabilities | 11,131 | 0 |
Accrued interest payable and other liabilities | 10,429 | 12,979 |
Total liabilities | 1,503,086 | 1,486,732 |
Commitments and contingent liabilities | ||
Preferred stock, 10,000,000 shares authorized, no par value, 0 issued and outstanding shares | 0 | 0 |
Common stock, 60,000,000 shares authorized, no par value; 15,980,655 and 15,977,754 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 170,769 | 171,067 |
Additional paid-in capital | 3,366 | 3,299 |
Retained earnings | 48,927 | 37,577 |
Accumulated other comprehensive income (loss), net | 338 | (1,647) |
Total shareholders’ equity | 223,400 | 210,296 |
Total liabilities and shareholders’ equity | $ 1,726,486 | $ 1,697,028 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 22,813 | $ 21,152 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, issued (in shares) | 15,980,655 | 15,977,754 |
Common stock, outstanding (in shares) | 15,980,655 | 15,977,754 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Interest and fees on loans | $ 21,969 | $ 18,610 | $ 42,903 | $ 36,050 |
Interest on tax-exempt investment securities | 38 | 41 | 77 | 81 |
Interest on investment securities | 1,024 | 828 | 2,078 | 1,636 |
Interest and dividends on other interest-earning assets | 999 | 865 | 1,924 | 1,205 |
Total interest income | 24,030 | 20,344 | 46,982 | 38,972 |
Interest expense: | ||||
Interest on deposits | 6,200 | 4,292 | 11,865 | 7,458 |
Interest on borrowings | 138 | 170 | 272 | 338 |
Total interest expense | 6,338 | 4,462 | 12,137 | 7,796 |
Net interest income | 17,692 | 15,882 | 34,845 | 31,176 |
Provision for loan losses | 394 | 425 | 309 | 520 |
Net interest income after provision for loan losses | 17,298 | 15,457 | 34,536 | 30,656 |
Noninterest income: | ||||
Service charges and fees on deposits | 620 | 597 | 1,208 | 1,162 |
Loan servicing income | 492 | 585 | 1,123 | 1,211 |
Gain on sale of loans | 1,891 | 1,033 | 3,011 | 3,149 |
Other income | 303 | 279 | 597 | 550 |
Total noninterest income | 3,054 | 2,273 | 5,463 | 5,635 |
Noninterest expense: | ||||
Salaries and employee benefits | 6,600 | 6,153 | 13,222 | 12,399 |
Occupancy and equipment | 1,407 | 1,246 | 2,720 | 2,390 |
Professional fees | 686 | 988 | 1,444 | 1,511 |
Marketing and business promotion | 529 | 541 | 757 | 929 |
Data processing | 338 | 295 | 656 | 597 |
Director fees and expenses | 185 | 211 | 374 | 441 |
Regulatory assessments | 309 | 145 | 425 | 277 |
Other expenses | 930 | 1,361 | 1,675 | 2,027 |
Total noninterest expense | 10,984 | 10,940 | 21,273 | 20,571 |
Income before income taxes | 9,368 | 6,790 | 18,726 | 15,720 |
Income tax expense | 2,767 | 2,028 | 5,561 | 4,694 |
Net income | $ 6,601 | $ 4,762 | $ 13,165 | $ 11,026 |
Earnings per common share, basic (in dollars per share) | $ 0.41 | $ 0.35 | $ 0.82 | $ 0.82 |
Earnings per common share, diluted (in dollars per share) | $ 0.40 | $ 0.35 | $ 0.81 | $ 0.81 |
Weighted-average common shares outstanding, basic (in shares) | 16,017,089 | 13,432,775 | 16,008,325 | 13,425,557 |
Weighted-average common shares outstanding, diluted (in shares) | 16,330,039 | 13,628,677 | 16,303,274 | 13,607,834 |
Service charges and fees on deposits | ||||
Noninterest income: | ||||
Service charges and fees on deposits | $ 368 | $ 376 | $ 732 | $ 725 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,601 | $ 4,762 | $ 13,165 | $ 11,026 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on securities available-for-sale arising during the period | 1,638 | (515) | 2,810 | (1,960) |
Income tax benefit (expense) related to items of other comprehensive income | (480) | 151 | (825) | 571 |
Total other comprehensive income (loss), net of tax | 1,158 | (364) | 1,985 | (1,389) |
Total comprehensive income | $ 7,759 | $ 4,398 | $ 15,150 | $ 9,637 |
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, 2017 | $ 142,184 | $ 125,430 | $ 2,941 | $ 15,036 | $ (1,223) |
Beginning balance (in shares) at Dec. 31, 2017 | 13,417,899 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 11,026 | 11,026 | |||
Other comprehensive income (loss), net of tax | (1,389) | (1,389) | |||
Share-based compensation expense | 339 | 339 | |||
Stock options exercised | 75 | $ 149 | (74) | ||
Stock options exercised (in shares) | 17,315 | ||||
Cash dividends declared on common stock | (804) | (804) | |||
Balance at end of period at Jun. 30, 2018 | 151,431 | $ 125,579 | 3,206 | 25,258 | (2,612) |
Ending balance (in shares) at Jun. 30, 2018 | 13,435,214 | ||||
Beginning balance at Mar. 31, 2018 | 147,233 | $ 125,511 | 3,072 | 20,898 | (2,248) |
Beginning balance (in shares) at Mar. 31, 2018 | 13,424,777 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,762 | 4,762 | |||
Other comprehensive income (loss), net of tax | (364) | (364) | |||
Share-based compensation expense | 157 | 157 | |||
Stock options exercised | 45 | $ 68 | (23) | ||
Stock options exercised (in shares) | 10,437 | ||||
Cash dividends declared on common stock | (402) | (402) | |||
Balance at end of period at Jun. 30, 2018 | 151,431 | $ 125,579 | 3,206 | 25,258 | (2,612) |
Ending balance (in shares) at Jun. 30, 2018 | 13,435,214 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect adjustment upon adoption of new lease accounting standard | ASU 2016-02 | (53) | (53) | |||
Beginning balance at Dec. 31, 2018 | $ 210,296 | $ 171,067 | 3,299 | 37,577 | (1,647) |
Beginning balance (in shares) at Dec. 31, 2018 | 15,977,754 | 15,977,754 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 13,165 | 13,165 | |||
Other comprehensive income (loss), net of tax | 1,985 | 1,985 | |||
Repurchase of common stock | (974) | $ (974) | |||
Repurchase of common stock (in shares) | (57,551) | ||||
Share-based compensation expense | 323 | 323 | |||
Stock options exercised | $ 420 | $ 676 | (256) | ||
Stock options exercised (in shares) | 60,452 | 60,452 | |||
Cash dividends declared on common stock | $ (1,762) | (1,762) | |||
Balance at end of period at Jun. 30, 2019 | $ 223,400 | $ 170,769 | 3,366 | 48,927 | 338 |
Ending balance (in shares) at Jun. 30, 2019 | 15,980,655 | 15,980,655 | |||
Beginning balance at Mar. 31, 2019 | $ 217,211 | $ 171,407 | 3,336 | 43,288 | (820) |
Beginning balance (in shares) at Mar. 31, 2019 | 16,011,151 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,601 | 6,601 | |||
Other comprehensive income (loss), net of tax | 1,158 | 1,158 | |||
Repurchase of common stock | $ (974) | $ (974) | |||
Repurchase of common stock (in shares) | (57,551) | (57,551) | |||
Share-based compensation expense | $ 162 | 162 | |||
Stock options exercised | $ 204 | $ 336 | (132) | ||
Stock options exercised (in shares) | 27,055 | 27,055 | |||
Cash dividends declared on common stock | $ (962) | (962) | |||
Balance at end of period at Jun. 30, 2019 | $ 223,400 | $ 170,769 | $ 3,366 | $ 48,927 | $ 338 |
Ending balance (in shares) at Jun. 30, 2019 | 15,980,655 | 15,980,655 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 13,165 | $ 11,026 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of premises and equipment | 763 | 612 |
Net amortization of premiums (discounts) on securities | 406 | 406 |
Accretion of discounts on loans | (2,041) | (1,967) |
Net accretion of deferred loan costs (fees) | (209) | (262) |
Amortization of servicing assets | 1,213 | 1,244 |
Provision for loan losses | 309 | 520 |
Deferred tax expense (benefit) | (689) | 57 |
Stock-based compensation | 323 | 339 |
Gain on sale of loans | (3,011) | (3,149) |
Originations of loans held-for-sale | (47,532) | (60,399) |
Proceeds from sales of and principal collected on loans held-for-sale | 56,693 | 49,135 |
Change in accrued interest receivable and other assets | (12) | (41) |
Change in accrued interest payable and other liabilities | (1,920) | 1,968 |
Net cash provided by operating activities | 17,458 | (511) |
Cash flows from investing activities | ||
Purchase of securities available-for-sale | (6,247) | (16,060) |
Proceeds from maturities, calls, and paydowns of securities available-for-sale | 13,179 | 11,329 |
Purchase of securities held-to-maturity | (2,150) | 0 |
Proceeds from maturities and paydowns of securities held-to-maturity | 1,149 | 629 |
Proceeds from sale of loans held-for-sale previously classified as held-for-investment | 303 | 7,208 |
Net change in loans receivable | (56,712) | (71,304) |
Purchase of Federal Home Loan Bank stock | (912) | (844) |
Proceeds from sale of other real estate owned | 0 | 102 |
Purchases of premises and equipment | (513) | (787) |
Net cash used in investing activities | (51,903) | (69,727) |
Cash flows from financing activities | ||
Net increase in deposits | 2,773 | 175,955 |
Net change in short-term Federal Home Loan Bank advances | 15,000 | 0 |
Repayment of long-term Federal Home Loan Bank advances | (10,000) | (10,000) |
Stock options exercised | 420 | 75 |
Repurchase of common stock | (974) | 0 |
Cash dividends paid on common stock | (1,762) | (804) |
Net cash provided by financing activities | 5,457 | 165,226 |
Net increase in cash and cash equivalents | (28,988) | 94,988 |
Cash and cash equivalents at beginning of year | 162,273 | 73,658 |
Cash and cash equivalents at end of year | 133,285 | 168,646 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 13,017 | 7,438 |
Income taxes paid | 7,322 | 4,194 |
Supplemental disclosures of non-cash investment activities: | ||
Loans transferred to loans held-for-sale | 303 | 7,034 |
Loans transferred to other real estate owned | 50 | 0 |
Right of use assets obtained in exchange for lease obligations | $ 1,588 | $ 0 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Nature of Operations PCB Bancorp (collectively, with its consolidated subsidiary, the “Company,” “we,” “us” or “our”) is a bank holding company whose subsidiary is Pacific City Bank (the “Bank”). The Company changed its corporate name from “Pacific City Financial Corporation” to “PCB Bancorp” in July 2019. The Bank is a single operating segment that operates 11 full-service branches in Los Angeles and Orange counties, California, one full-service branch in each of Fort Lee, New Jersey and Bayside, New York, and 10 loan production offices (“LPOs”) in Irvine, Artesia and Los Angeles, California; Annandale, Virginia; Chicago, Illinois; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; Carrollton, Texas; and New York, New York. The Bank offers a broad range of loans, deposits, and other products and services predominantly to small and middle market businesses and individuals. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to Article 10 of SEC Regulation S-X and other SEC rules and regulations for reporting on the Quarterly Report on Form 10-Q. Accordingly, certain disclosures required by U.S. generally accepted accounting principles (“GAAP”) are not included herein. These interim statements should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2018 filed by the Company with the SEC. The December 31, 2018 balance sheet presented herein has been derived from the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC, but does not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management of the Company, the accompanying unaudited interim consolidated financial statements reflect all of the adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial condition and consolidated results of operations as of the dates and for the periods presented. Certain reclassifications have been made in the prior period financial statements to conform to the current period presentation. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Principles of Consolidation The consolidated financial statements include the accounts of PCB Bancorp and its wholly owned subsidiary as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 . Significant inter-company accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiary. Significant Accounting Policies The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the banking industry. The Company has not made any significant changes in its critical accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC. Refer to Adopted Accounting Pronouncements below for discussion of accounting pronouncements adopted during the six months ended June 30, 2019 . Use of Estimates in the Preparation of Financial Statements The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are subject to change and such change could have a material effect on the consolidated financial statements. Actual results may differ from those estimates. Adopted Accounting Pronouncements During the six months ended June 30, 2019 , the following accounting pronouncements applicable to the Company were adopted: In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, “Leases (Topic 842).” In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and ASU 2018-11, “Leases Topic 842, Targeted Improvements,” to provide additional clarification, implantation, and transition guidance on certain aspects of ASU 2016-02. The amendments in ASU 2016-02 require lessees to recognize lease assets and lease liabilities for both leases classified as operating leases and finance leases, except leases with a term of 12 months or less where lessees are permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. For leases with a term of greater than 12 months, lessees are required to recognize a liability to make lease payments and a right-of-use assets representing its right to use the underlying asset for the lease term measured at the present value of the lease payments. ASU 2016-02 and ASU 2018-10 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for a public business entity. Under ASU 2018-11, an additional transition option was provided that would allow entities to not apply the new guidance in the comparative periods they present in their financial statements in the year of adoption. Under this optional transition method, entities will be allowed to continue using and presenting leases under Accounting Standard Codification (“ASC”) 840 for prior years comparative periods and then prospectively adopt ASC 842 on January 1, 2019, recognizing a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this guidance in the first quarter of 2019 using the optional transition method with a cumulative effect adjustment to retained earnings without restating prior period financial statements for comparable amounts. The Company elected the package of practical expedients permitted under the transition guidance within this ASU, which allowed the Company to carry forward the historical lease classification. The Company completed its review of its existing lease contracts and service contracts that may include embedded leases, and updated processes and internal controls for leasing activities. The Company recognized right-of-use lease assets and liabilities of $9.6 million and $10.6 million , respectively, with a cumulative effect adjustment of $53 thousand to retained earnings at the date of adoption. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements other than the recognition of right-of-use lease assets and liabilities. See Note 6 for additional information. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities acquired at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted The following are recently issued accounting pronouncements applicable to the Company that have not yet been adopted: In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” The amendments in this ASU require that entities change the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. It includes financial assets such as loan receivables, held-to-maturity debt securities, net investment in leases that are not accounted for at fair value through net income, and certain off-balance sheet credit exposures. This ASU is effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In July 2019, the FASB voted to tentatively delay the effective date of this ASU to 2023 for certain SEC filers that are Smaller Reporting Companies, which would apply to the Company. The FASB plans to issue two proposed ASUs in the near future related to the proposed delay in the effectiveness of this ASU. The Company has formed a committee, developed an implementation plan, and engaged a software vendor to assist the Company to build a model. The Company is in the process of completing a readiness assessment and is engaged in the implementation phase of the project. The Company is working on: (i) developing a new expected loss model with supportable assumptions; (ii) identifying data, reporting, and disclosure gaps; (iii) assessing updates to accounting and credit risk policies; and (iv) documenting new processes and controls. Based on the Company’s initial assessment of this ASU, the Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses which could potentially have a material impact on its consolidated financial statements as of the beginning of the first reporting period in which this ASU is effective. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (i.e. an 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. The three-level fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are defined as follows: • 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 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 a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value is measured on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate certain assets or liabilities for impairment or for disclosure purposes. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company records securities available-for-sale at fair value on a recurring basis. Certain other assets, such as loans held-for-sale, impaired loans, servicing assets and other real estate owned (“OREO”) are recorded at fair value on a non-recurring basis. Non-recurring fair value measurements typically involve assets that are periodically evaluated for impairment and for which any impairment is recorded in the period in which the re-measurement is performed. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Investment securities : The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Management reviews the valuation techniques and assumptions used by the provider and determines that the provider uses widely accepted valuation techniques based on observable market inputs appropriate for the type of security being measured. Securities held-to-maturity are not measured at fair value on a recurring basis. Loans held-for-sale : The Company records SBA loans held-for-sale, residential property loans held-for-sale and certain non-residential real estate loans held-for-sale at the lower of cost or fair value, on an aggregate basis. The Company obtains fair values from a third party independent valuation service provider. Loans held-for-sale accounted for at the lower of cost or fair value are considered to be recognized at fair value when they are recorded at below cost, on an aggregate basis, and are classified as Level 2. Impaired loans : The Company records fair value adjustments on certain loans that reflect (i) partial write-downs, through charge-offs or specific reserve allowances, that are based on the current appraised or market-quoted value of the underlying collateral or (ii) the full charge-off of the loan carrying value. In some cases, the properties for which market quotes or appraised values have been obtained are located in areas where comparable sales data is limited, outdated, or unavailable. Fair value estimates for collateral-dependent impaired loans are obtained from real estate brokers or other third-party consultants, and are classified as Level 3. Other real estate owned : The Company initially records OREO at fair value at the time of foreclosure. Thereafter, OREO is recorded at the lower of cost or fair value based on their subsequent changes in fair value. The fair value of OREO is generally based on recent real estate appraisals adjusted for estimated selling costs. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and result in a Level 3 classification due to the unobservable inputs used for determining fair value. Only OREO with a valuation allowance are considered to be carried at fair value. Servicing Assets: Servicing assets represent the value associated with servicing loans that have been sold. The fair value for servicing assets is determined through discounted cash flow analysis and utilizes discount rates and prepayment speed assumptions as inputs. All of these assumptions require a significant degree of management estimation and judgment. The fair market valuation is performed on a quarterly basis for servicing assets. Servicing assets are accounted for at the lower of cost or market value and considered to be recognized at fair value when they are recorded at below cost and are classified as Level 3. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of dates indicated: Fair Value Measurement Level ($ in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total June 30, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ 68,497 $ — $ 68,497 Residential collateralized mortgage obligations — 52,121 — 52,121 SBA loan pool securities — 21,131 — 21,131 Municipal bonds — 790 — 790 Total securities available-for-sale — 142,539 — 142,539 Total assets measured at fair value on a recurring basis $ — $ 142,539 $ — $ 142,539 Total liabilities measured at fair value on a recurring basis $ — $ — $ — $ — December 31, 2018 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ 67,921 $ — $ 67,921 Residential collateralized mortgage obligations — 55,649 — 55,649 SBA loan pool securities — 22,632 — 22,632 Municipal bonds — 789 — 789 Total securities available-for-sale — 146,991 — 146,991 Total assets measured at fair value on a recurring basis $ — $ 146,991 $ — $ 146,991 Total liabilities measured at fair value on a recurring basis $ — $ — $ — $ — Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The following table presents the Company’s assets and liabilities measured at fair value on a non-recurring basis as of dates indicated: Fair Value Measurement Level ($ in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total June 30, 2019 Total assets measured at fair value on a non-recurring basis $ — $ — $ — $ — Total liabilities measured at fair value on a non-recurring basis $ — $ — $ — $ — December 31, 2018 Impaired loans: SBA property $ — $ — $ 51 $ 51 Total impaired loans — — 51 51 Total assets measured at fair value on a non-recurring basis $ — $ — $ 51 $ 51 Total liabilities measured at fair value on a non-recurring basis $ — $ — $ — $ — For assets measured at fair value, the following table presents the total net losses, which include charge-offs, recoveries, specific reserves, impairment on servicing assets, gain (loss) on sale of OREO, and OREO valuation write-downs recorded for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Collateral dependent impaired loans: Commercial property $ — $ (53 ) $ — $ (53 ) SBA property (18 ) (25 ) (20 ) (151 ) Servicing assets - SBA property loans — (63 ) — (63 ) Other real estate owned — — — 3 Net losses recognized $ (18 ) $ (141 ) $ (20 ) $ (264 ) Fair Value of Financial Instruments The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on financial instruments both on and off the consolidated balance sheet without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments. Financial assets : The carrying amounts of interest-bearing deposits with other financial institutions and accrued interest receivable are considered to approximate fair value. The fair values of investment securities are generally based on matrix pricing (Level 2). The fair value of loans is estimated based on a discounted cash flow approach under an exit price notion. The fair value reflects the estimated yield that would be negotiated with a willing market participant. Because sale transactions of such loans are not readily observable, as many of the loans have unique risk characteristics, the valuation is based on significant unobservable inputs (Level 3). It is not practical to determine the fair value of Federal Home Loan Bank (“FHLB”) and other restricted stock due to restrictions placed on its transferability. Financial liabilities : The carrying amounts of accrued interest payable are considered to approximate fair value. The fair value of deposits is estimated based on discounted cash flows. The discount rate is derived from the interest rates currently being offered for similar remaining maturities. Non-maturity deposits are estimated based on their historical decaying experiences (Level 3). The fair value of FHLB advances is estimated based on discounted cash flows. The discount rate is derived from the current market rates for borrowings with similar remaining maturities (Level 2). Off-balance-sheet financial instruments : The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. The fair value of these financial instruments is not material and is excluded from the table below. The following table presents the carrying value and estimated fair values of financial assets and liabilities as of the dates indicated: Carrying Value Fair Value Fair Value Measurements ($ in thousands) Level 1 Level 2 Level 3 June 30, 2019 Financial assets: Interest-bearing deposits in other financial institutions $ 114,205 $ 114,205 $ 114,205 $ — $ — Securities available-for-sale 142,539 142,539 — 142,539 — Securities held-to-maturity 22,685 22,813 — 22,813 — Loans held-for-sale 440 449 — 449 — Net loans held-for-investment 1,382,229 1,391,534 — — 1,391,534 FHLB and other restricted stock 8,345 N/A N/A N/A N/A Accrued interest receivable 5,314 5,314 83 551 4,680 Financial liabilities: Deposits $ 1,446,526 $ 1,451,505 $ — $ — $ 1,451,505 FHLB advances 35,000 35,075 — 35,075 — Accrued interest payable 5,343 5,343 — 36 5,307 December 31, 2018 Financial assets: Interest-bearing deposits in other financial institutions $ 138,152 $ 138,152 $ 138,152 $ — $ — Securities available-for-sale 146,991 146,991 — 146,991 — Securities held-to-maturity 21,760 21,152 — 21,152 — Loans held-for-sale 5,781 6,175 — 6,175 — Net loans held-for-investment 1,325,515 1,337,299 — — 1,337,299 FHLB and other restricted stock 7,433 N/A N/A N/A N/A Accrued interest receivable 5,178 5,178 112 568 4,498 Financial liabilities: Deposits $ 1,443,753 $ 1,425,023 $ — $ — $ 1,425,023 FHLB advances 30,000 29,641 — 29,641 — Accrued interest payable 6,223 6,223 — 1 6,222 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Debt securities have been classified as available-for-sale or held-to-maturity in the consolidated balance sheets according to management’s intent. The following table presents the amortized cost and fair value of the investment securities as of the dates indicated: ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value June 30, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 68,067 $ 755 $ (325 ) $ 68,497 Residential collateralized mortgage obligations 52,406 132 (417 ) 52,121 SBA loan pool securities 21,019 164 (52 ) 21,131 Municipal bonds 774 16 — 790 Total securities available-for-sale $ 142,266 $ 1,067 $ (794 ) $ 142,539 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 17,601 $ 20 $ (172 ) $ 17,449 Municipal bonds 5,084 281 (1 ) 5,364 Total securities held-to-maturity $ 22,685 $ 301 $ (173 ) $ 22,813 December 31, 2018 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 68,975 $ 177 $ (1,231 ) $ 67,921 Residential collateralized mortgage obligations 56,625 55 (1,031 ) 55,649 SBA loan pool securities 23,144 — (512 ) 22,632 Municipal bonds 784 5 — 789 Total securities available-for-sale $ 149,528 $ 237 $ (2,774 ) $ 146,991 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 16,659 $ — $ (602 ) $ 16,057 Municipal bonds 5,101 37 (43 ) 5,095 Total securities held-to-maturity $ 21,760 $ 37 $ (645 ) $ 21,152 As of June 30, 2019 and December 31, 2018 , pledged securities were $101.0 million and $112.2 million , respectively. These securities were pledged for the State Deposit from the California State Treasurer. The following table presents the amortized cost and fair value of the investment securities by contractual maturity as of June 30, 2019 . Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Securities Available-For-Sale Securities Held-To-Maturity ($ in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ 131 $ 131 One to five years — — 1,424 1,464 Five to ten years 774 790 1,208 1,244 Greater than ten years — — 2,321 2,525 Residential mortgage-backed securities, residential collateralized mortgage obligations and SBA loan pool securities 141,492 141,749 17,601 17,449 Total $ 142,266 $ 142,539 $ 22,685 $ 22,813 The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Gross realized gains on sales and calls of securities available-for-sale $ — $ — $ — $ — Gross realized losses on sales and calls of securities available-for-sale — — — — Net realized gains (losses) on sales and calls of securities available-for-sale $ — $ — $ — $ — Proceeds from sales and calls of securities available-for-sale $ — $ — $ — $ 1,060 Tax expense on sales and calls of securities available-for-sale $ — $ — $ — $ — The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position as of the dates indicated: Length of Time that Individual Securities Have Been In a Continuous Unrealized Loss Position Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities June 30, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ — — $ 30,778 $ (325 ) 37 $ 30,778 $ (325 ) 37 Residential collateralized mortgage obligations 10,175 (87 ) 6 34,408 (330 ) 33 44,583 (417 ) 39 SBA loan pool securities — — — 5,113 (52 ) 6 5,113 (52 ) 6 Total securities available-for-sale $ 10,175 $ (87 ) 6 $ 70,299 $ (707 ) 76 $ 80,474 $ (794 ) 82 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ — $ — — $ 11,803 $ (172 ) 12 $ 11,803 $ (172 ) 12 Municipal bonds — — — 131 (1 ) 1 131 (1 ) 1 Total securities held-to-maturity $ — $ — — $ 11,934 $ (173 ) 13 $ 11,934 $ (173 ) 13 December 31, 2018 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 1,868 $ (6 ) 2 $ 41,845 $ (1,225 ) 48 $ 43,713 $ (1,231 ) 50 Residential collateralized mortgage obligations 7,067 (29 ) 5 34,943 (1,002 ) 34 42,010 (1,031 ) 39 SBA loan pool securities 2,809 (7 ) 2 19,823 (505 ) 18 22,632 (512 ) 20 Total securities available-for-sale $ 11,744 $ (42 ) 9 $ 96,611 $ (2,732 ) 100 $ 108,355 $ (2,774 ) 109 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 2,022 $ (23 ) 1 $ 14,035 $ (579 ) 15 $ 16,057 $ (602 ) 16 Municipal bonds 2,600 (38 ) 8 497 (5 ) 3 3,097 (43 ) 11 Total securities held-to-maturity $ 4,622 $ (61 ) 9 $ 14,532 $ (584 ) 18 $ 19,154 $ (645 ) 27 The Company performs an other-than-temporary impairment (“OTTI”) assessment at least on a quarterly basis. OTTI is recognized when fair value is below the amortized cost where: (i) an entity has the intent to sell the security; (ii) it is more likely than not that an entity will be required to sell the security before recovery of its amortized cost basis; or (iii) an entity does not expect to recover the entire amortized cost basis of the security. All individual securities in a continuous unrealized loss position for 12 months or more as of June 30, 2019 and December 31, 2018 had an investment grade rating upon purchase. The issuers of these securities have not established any cause for default on these securities and various rating agencies have reaffirmed their long-term investment grade status as of June 30, 2019 and December 31, 2018 . These securities have fluctuated in value since their purchase dates as market interest rates fluctuated. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell before the recovery of its amortized cost basis. In addition, the unrealized losses on municipal bonds are not considered other-than-temporary impaired, as the bonds are rated investment grade and there are no credit quality concerns with the issuers. Interest payments have been made as scheduled, and management believes this will continue in the future until the bonds get paid in full. The Company determined that the investment securities with unrealized losses for twelve months or more are not other-than-temporary impaired, and, therefore, no impairment was recognized during the six months ended June 30, 2019 and 2018 . |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans Held-For-Investment The following table presents, by recorded investment, the composition of the Company’s loans held-for-investment (net of deferred fees and costs) as of the dates indicated: ($ in thousands) June 30, 2019 December 31, 2018 Real estate loans: Commercial property $ 748,526 $ 709,409 Residential property 240,630 233,816 SBA property 128,208 120,939 Construction 22,455 27,323 Total real estate loans 1,139,819 1,091,487 Commercial and industrial loans: Commercial term 105,651 102,133 Commercial lines of credit 85,197 80,473 SBA commercial term 24,762 27,147 Trade finance 16,334 11,521 Total commercial and industrial loans 231,944 221,274 Other consumer loans 23,794 25,921 Loans held-for-investment 1,395,557 1,338,682 Allowance for loan losses (13,328 ) (13,167 ) Net loans held-for-investment $ 1,382,229 $ 1,325,515 In the ordinary course of business, the Company may grant loans to certain officers and directors, and the companies with which they are associated. As of June 30, 2019 and December 31, 2018 , the Company had $3.8 million and $2.4 million , respectively, of such loans outstanding. Allowance for Loan Losses The following table presents the activities in allowance for loan losses by portfolio segment, which is consistent with the Company’s methodology for determining allowance for loan losses, for the three months ended June 30, 2019 and 2018 : Three Months Ended ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total Balance at April 1, 2019 $ 9,324 $ 3,608 $ 205 $ 13,137 Charge-offs (17 ) (168 ) (67 ) (252 ) Recoveries on loans previously charged off — 33 16 49 Provision (reversal) for loan losses 404 (47 ) 37 394 Balance at June 30, 2019 $ 9,711 $ 3,426 $ 191 $ 13,328 Balance at April 1, 2018 $ 9,076 $ 3,100 $ 195 $ 12,371 Charge-offs (79 ) (90 ) (127 ) (296 ) Recoveries on loans previously charged off 50 54 17 121 Provision for loan losses 276 44 105 425 Balance at June 30, 2018 $ 9,323 $ 3,108 $ 190 $ 12,621 The following table presents the activities in allowance for loan losses by portfolio segment, which is consistent with the Company’s methodology for determining allowance for loan losses, for the six months ended June 30, 2019 and 2018 : Six Months Ended ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total Balance at January 1, 2019 $ 9,104 $ 3,877 $ 186 $ 13,167 Charge-offs (19 ) (168 ) (111 ) (298 ) Recoveries on loans previously charged off 4 74 72 150 Provision (reversal) for loan losses 622 (357 ) 44 309 Balance at June 30, 2019 $ 9,711 $ 3,426 $ 191 $ 13,328 Balance at January 1, 2018 $ 8,507 $ 3,548 $ 169 $ 12,224 Charge-offs (204 ) (90 ) (141 ) (435 ) Recoveries on loans previously charged off 52 234 26 312 Provision (reversal) for loan losses 968 (584 ) 136 520 Balance at June 30, 2018 $ 9,323 $ 3,108 $ 190 $ 12,621 The following tables present the information on allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of the dates indicated: ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total June 30, 2019 Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment 9,711 3,426 191 13,328 Total $ 9,711 $ 3,426 $ 191 $ 13,328 Loans receivable: Individually evaluated for impairment $ 1,676 $ 103 $ — $ 1,779 Collectively evaluated for impairment 1,138,143 231,841 23,794 1,393,778 Total $ 1,139,819 $ 231,944 $ 23,794 $ 1,395,557 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 1 $ 93 $ — $ 94 Collectively evaluated for impairment 9,103 3,784 186 13,073 Total $ 9,104 $ 3,877 $ 186 $ 13,167 Loans receivable: Individually evaluated for impairment $ 1,156 $ 320 $ — $ 1,476 Collectively evaluated for impairment 1,090,331 220,954 25,921 1,337,206 Total $ 1,091,487 $ 221,274 $ 25,921 $ 1,338,682 Credit Quality Indicators The Company classifies 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 Company analyzes loans individually by classifying the loans in regards to credit risk. This analysis typically includes non-homogeneous loans, such as commercial property and commercial and industrial loans, and is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass - Loans classified as pass include non-homogeneous loans not meeting the risk ratings defined below and smaller, homogeneous loans not assessed on an individual basis. 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 the deterioration of 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 classified as substandard 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. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following table presents the risk categories for the recoded investment in loans by portfolio segment as of dates indicated: ($ in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2019 Real estate loans: Commercial property $ 747,877 $ — $ 649 $ — $ 748,526 Residential property 240,630 — — — 240,630 SBA property 121,684 73 6,451 — 128,208 Construction 19,228 3,227 — — 22,455 Commercial and industrial loans: Commercial term 105,638 — 13 — 105,651 Commercial lines of credit 85,197 — — — 85,197 SBA commercial term 24,378 54 330 — 24,762 Trade finance 16,334 — — — 16,334 Other consumer loans 23,753 — 41 — 23,794 Total $ 1,384,719 $ 3,354 $ 7,484 $ — $ 1,395,557 December 31, 2018 Real estate loans: Commercial property $ 708,742 $ — $ 667 $ — $ 709,409 Residential property 233,514 — 302 — 233,816 SBA property 115,543 74 5,322 — 120,939 Construction 24,325 2,998 — — 27,323 Commercial and industrial loans: Commercial term 102,106 — 27 — 102,133 Commercial lines of credit 79,874 599 — — 80,473 SBA commercial term 26,616 — 531 — 27,147 Trade finance 11,521 — — — 11,521 Other consumer loans 25,905 — 16 — 25,921 Total $ 1,328,146 $ 3,671 $ 6,865 $ — $ 1,338,682 Past Due and Nonaccrual Loans The following table presents the aging of past due recorded investment in accruing loans and nonaccrual loans by portfolio segment as of dates indicated: Still Accruing ($ in thousands) 30 to 59 Days Past Due 60 to 89 Days Past Due 90 or More Days Past Due Nonaccrual Total Past Due and Nonaccrual June 30, 2019 Real estate loans: SBA property $ 375 $ — $ — $ 1,372 $ 1,747 Commercial and industrial loans: SBA commercial term 343 — — 16 359 Other consumer loans 86 5 — 41 132 Total $ 804 $ 5 $ — $ 1,429 $ 2,238 December 31, 2018 Real estate loans: Residential property $ 95 $ — $ — $ 302 $ 397 SBA property 183 — — 540 723 Commercial and industrial loans: SBA commercial term — — — 203 203 Other consumer loans 90 9 — 16 115 Total $ 368 $ 9 $ — $ 1,061 $ 1,438 There were no nonaccrual loans guaranteed by a U.S. government agency at June 30, 2019 and December 31, 2018 . Impaired Loans Loans are considered impaired in the following cases: (i) the loan is on nonaccrual, (ii) when principal or interest payments on the loan have been contractually past due for 90 days or more, unless the loan is both well-collateralized and in the process of collection, (iii) the loan is classified as a troubled debt restructuring (“TDR”) where terms not typically granted by the Company were offered to the borrower, (iv) when current information or events make it unlikely to collect the loan balance in full according to the contractual terms of the loan agreement, (v) there is a deterioration in the borrower’s financial condition that raises uncertainty as to timely collection of either principal or interest, or (vi) full payment of both principal and interest of the loan according to the original contractual terms is in doubt. The following table presents loans individually evaluated for impairment by portfolio segment as of the dates indicated. The recorded investment presents customer balances net of any partial charge-offs recognized on the loans and net of any deferred fees and costs. With No Allowance Recorded With an Allowance Recorded ($ in thousands) Recorded Investment Unpaid Principal Balance Recorded Investment Unpaid Principal Balance Related Allowance June 30, 2019 Real estate loans: SBA property $ 1,676 $ 1,733 $ — $ — $ — Commercial and industrial loans: Commercial term 47 47 — — — SBA commercial term 56 70 — — — Total $ 1,779 $ 1,850 $ — $ — $ — December 31, 2018 Real estate loans: Residential property $ 302 $ 303 $ — $ — $ — SBA property 802 854 52 50 1 Commercial and industrial loans: Commercial term 68 69 — — — SBA commercial term 73 99 179 189 93 Total $ 1,245 $ 1,325 $ 231 $ 239 $ 94 The following table presents information on the recorded investment in impaired loans by portfolio segment for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 ($ in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Real estate loans: Commercial property $ — $ — $ 275 $ — Residential property — — 365 — SBA property 1,666 6 1,538 5 Commercial and industrial loans: Commercial term 52 1 136 2 Commercial lines of credit — — 20 — SBA commercial term 59 1 567 1 Total $ 1,777 $ 8 $ 2,901 $ 8 The following table presents information on the recorded investment in impaired loans by portfolio segment for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 ($ in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Real estate loans: Commercial property $ — $ — $ 295 $ — Residential property 76 — 547 — SBA property 1,507 12 1,362 10 Commercial and industrial loans: Commercial term 57 2 162 5 Commercial lines of credit — — 13 — SBA commercial term 150 2 509 6 Total $ 1,790 $ 16 $ 2,888 $ 21 The following presents a summary of interest foregone on impaired loans for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Interest income that would have been recognized had impaired loans performed in accordance with their original terms $ 32 $ 47 $ 64 $ 128 Less: interest income recognized on impaired loans on a cash basis (8 ) (8 ) (16 ) (54 ) Interest income foregone on impaired loans $ 24 $ 39 $ 48 $ 74 Troubled Debt Restructurings A TDR is a restructuring in which the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. The restructuring of a loan includes, but is not limited to: (i) the transfer from the borrower to the Company of real estate, receivables from third parties, other assets, or an equity interest in full or partial satisfaction of the loan, (ii) a modification of the loan terms, such as a reduction of the stated interest rate, principal, or accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, or (iii) a combination of the above. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not to be reported as a restructured loan. The following table presents the composition of loans that were modified as TDRs by portfolio segment as of the dates indicated: June 30, 2019 December 31, 2018 ($ in thousands) Accruing Nonaccrual Total Accruing Nonaccrual Total Real estate loans: SBA property $ 304 $ 131 $ 435 $ 315 $ — $ 315 Commercial and industrial loans: Commercial term 47 — 47 68 — 68 SBA commercial term 40 — 40 49 131 180 Total $ 391 $ 131 $ 522 $ 432 $ 131 $ 563 The following table presents information on new loans that were modified as TDRs for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans: SBA property (1) 1 $ 131 $ 131 — $ — $ — Total 1 $ 131 $ 131 — $ — $ — (1) Modified by deferral of principal payment. The following table presents information on new loans that were modified as TDRs for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans: SBA property (1) 1 $ 131 $ 131 — $ — $ — Total 1 $ 131 $ 131 — $ — $ — (1) Modified by deferral of principal payment. The Company had no commitments to lend to customers with outstanding loans that were classified as TDRs as of June 30, 2019 and December 31, 2018 . The determination of the allowance for loan losses related to TDRs depends on the collectability of principal and interest, according to the modified repayment terms. Loans that were modified as TDRs were individually evaluated for impairment and the Company allocated none and $86 thousand of allowance for loan losses as of June 30, 2019 and December 31, 2018 , respectively. The following table presents information on loans that were modified as TDRs for which there was a payment default within twelve months following the modification for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 ($ in thousands) Number of Loans Recorded Investment at Date of Default Number of Loans Recorded Investment at Date of Default Commercial and industrial loans: SBA commercial term — $ — 2 $ 233 Total — $ — 2 $ 233 The following table presents information on loans that were modified as TDRs for which there was a payment default within twelve months following the modification for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 ($ in thousands) Number of Loans Recorded Investment at Date of Default Number of Loans Recorded Investment at Date of Default Commercial and industrial loans: SBA commercial term — $ — 2 $ 233 Total — $ — 2 $ 233 Purchases, Sales, and Transfers The Company had no loans transferred to loans held-for-sale during the three months ended June 30, 2019 . During the six months ended June 30, 2019 , the Company transferred a residential property loan of $303 thousand to loans held-for-sale. The Company transferred residential property loans of $6.0 million to loans held-for-sale during the three months ended June 30, 2018 . During the six months ended June 30, 2018 , the Company transferred a commercial property loan of $1.1 million and residential property loans of $6.0 million to loans held-for-sale. The Company had no sales or purchases of loans held-for-investment during the three and six months ended June 30, 2019 and 2018 . Loans Held-For-Sale The following table presents a composition of loans held-for-sale as of the dates indicated: ($ in thousands) June 30, 2019 December 31, 2018 Real estate loans: Residential property $ 355 $ — SBA property — 5,481 Commercial and industrial loans: SBA commercial term 85 300 Total $ 440 $ 5,781 Loans held-for-sale are carried at the lower of cost or fair value. When a determination is made at the time of commitment to originate as held-for-investment, it is the Company’s intent to hold these loans to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s management evaluation processes, including asset/liability management and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred to held-for-sale at the lower of cost or fair value. Certain loans are transferred to held-for-sale with write-downs to allowance for loan losses. |
Servicing Assets
Servicing Assets | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Servicing Assets | Servicing Assets At June 30, 2019 and December 31, 2018 , total servicing assets were $7.2 million and $7.7 million , respectively. The Company sold loans of $29.2 million and $18.5 million , respectively, with the servicing rights retained and recognized a net gain on sale of $1.9 million and $1.0 million , respectively, during the three months ended June 30, 2019 and 2018 . During the six months ended June 30, 2019 and 2018 , the Company sold loans of $50.4 million and $48.4 million , respectively, with the servicing rights retained and recognized a net gain on sale of $3.0 million and $3.1 million , respectively. Loan servicing income was $492 thousand and $585 thousand , respectively, for the three months ended June 30, 2019 and 2018 , and $1.1 million and $1.2 million , respectively, for the six months ended June 30, 2019 and 2018 . All classes of servicing assets are measured using the amortization method and evaluated for impairment quarterly by comparing the fair value of the servicing right to the carrying amount. Fair value is estimated by stratifying the loans sold between mortgage and non-mortgage loans and discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. For the purposes of measuring impairment, the Company has identified each servicing asset with the underlying loan being serviced, and a valuation allowance is recorded when the fair value is below the carrying amount. The following table presents the composition of servicing assets with key assumptions used to estimate the fair value: June 30, 2019 December 31, 2018 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Carrying amount $ 204 $ 6,094 $ 932 $ 244 $ 6,349 $ 1,073 Fair value $ 210 $ 6,861 $ 1,058 $ 298 $ 6,937 $ 1,206 Discount rate 11.25 % 13.25 % 12.75 % 11.25 % 13.25 % 12.75 % Prepayment speed 31.00 % 15.18 % 15.69 % 25.00 % 14.12 % 13.55 % Weighted average remaining life 24.7 years 21.1 years 7.2 years 25.2 years 21.1 years 7.4 years Underlying loans being serviced $ 38,487 $ 379,345 $ 86,262 $ 45,728 $ 367,856 $ 93,073 The following table presents activity in servicing assets for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Balance at beginning of period $ 221 $ 6,277 $ 987 $ 290 $ 7,375 $ 1,225 Additions — 386 56 22 132 60 Amortization (17 ) (569 ) (111 ) (27 ) (504 ) (120 ) Impairment — — — — (63 ) — Balance at end of period $ 204 $ 6,094 $ 932 $ 285 $ 6,940 $ 1,165 The following table presents activity in servicing assets for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Balance at beginning of period $ 244 $ 6,349 $ 1,073 $ 308 $ 7,369 $ 1,296 Additions — 670 107 22 568 134 Amortization (40 ) (925 ) (248 ) (45 ) (934 ) (265 ) Impairment — — — — (63 ) — Balance at end of period $ 204 $ 6,094 $ 932 $ 285 $ 6,940 $ 1,165 |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Operating Leases | Operating Leases On January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842),” and all subsequent ASUs that are related to Topic 842. As discussed in Note 1, the Company adopted this ASU using the optional transition method with a cumulative effect adjustment to retained earnings without restating prior financial statements for comparable amounts. As a result, the Company recognized right-of-use assets and liabilities of $9.6 million and $10.6 million , respectively, with a cumulative effect adjustment of $53 thousand to retained earnings at the date of adoption. The Company made an election to include both the lease and non-lease components as a single component and account for it as a lease. The Company’s operating leases are for its headquarters office spaces, and retail branch and LPO locations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years. The exercise of lease renewal option is at the Company’s sole discretion. Certain leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expenses for these leases are recognized on a straight-line basis over the lease term. None of the Company’s lease agreements contain any material residual value guarantees or material restrictive covenants. The Company also leases certain equipment, such as copy machines and scanners, but they are determined to be immaterial. The following table presents operating lease cost and supplemental cash flow information related to leases for the periods indicated: ($ in thousands) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost (1) $ 649 $ 1,273 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases — — Right of use assets obtained in exchange for lease obligations 1,523 1,588 (1) Included in Occupancy and Equipment on the Consolidated Statements of Income. Operating lease cost for the three and six months ended June 30, 2018 was under Topic 840. The Company used the incremental borrowing rate based on the information available at the date of adoption in determining the present value of lease payment. The following table presents supplemental balance sheet information related to leases as of June 30, 2019 : ($ in thousands) June 30, 2019 Operating leases: Operating lease assets $ 10,105 Operating lease liabilities 11,131 Weighted-average remaining lease term 5.4 years Weighted-average discount rate 2.81 % The following table presets maturities of operating lease liabilities as of June 30, 2019 : ($ in thousands) June 30, 2019 Maturities: 2019 $ 1,347 2020 2,675 2021 2,283 2022 2,171 2023 1,828 After 2023 1,899 Total lease payment 12,203 Imputed Interest (1,072 ) Present value of operating lease liabilities $ 11,131 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Advances and Other Borrowings | Federal Home Loan Bank Advances and Other Borrowings FHLB Advances The Company had outstanding FHLB advances of $35.0 million and $30.0 million at June 30, 2019 and December 31, 2018 , respectively. FHLB advances consisted of an overnight borrowing of $15.0 million with an interest rate of 2.52% and fixed interest rates term borrowings of $20.0 million with original maturity terms ranging from 3 to 5 years and weighted-average interest rate of 1.92% at June 30, 2019 . At December 31, 2018 , FHLB advances consisted of fixed interest rates term borrowings with original maturity terms ranging from 2 to 5 years and weighted-average interest rate of 1.81% . Each borrowing is payable at its maturity date. Borrowings paid early are subject to a prepayment penalty. At June 30, 2019 and December 31, 2018 , loans pledged to secure borrowings from the FHLB were $637.7 million and $523.4 million , respectively. The Company’s investment in capital stock of the FHLB of San Francisco totaled $8.2 million and $7.3 million , respectively, at June 30, 2019 and December 31, 2018 . The Company had additional borrowing capacity of $394.4 million and $386.0 million , respectively, from the FHLB as of June 30, 2019 and December 31, 2018 . Other Borrowing Arrangements At June 30, 2019 , the Company had $41.8 million of unused borrowing capacity from the Federal Reserve Discount Window, to which the Company pledged loans with a carrying value of $48.3 million with no outstanding borrowings. In addition, the Company may borrow up to approximately $35.0 million overnight federal funds lines with correspondent financial institutions at June 30, 2019 . During the three months ended June 30, 2019 , a line of credit of $25.0 million with an unaffiliated financial institution was terminated. The Company had no outstanding borrowings under the line at the time of termination. |
Shareholders_ Equity
Shareholders’ Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholders’ Equity | Shareholders’ Equity Common Stock On August 14, 2018, the Company issued and sold 2,385,000 shares of its common stock at an offering price of $20.00 in an underwritten public offering, for gross proceeds of approximately $47.7 million . The underwriters were granted a 30 -day option to purchase up to an additional 357,750 shares of common stock at the initial public offering price less the underwriting discount. Concurrently with the initial public offering, the Company’s common stock began trading on the Nasdaq Global Select Market under the symbol “PCB.” On September 5, 2018, the Company issued an additional 123,234 shares of its common stock upon the exercise by the underwriters of a portion of their 30 -day option, for additional gross proceeds of approximately $2.5 million . Aggregate net proceeds from the offering were $45.0 million after deducting underwriting discounts and commissions and estimated offering expenses. Stock Repurchase On March 28, 2019, the Company’s Board of Directors approved the repurchase of up to $6.5 million of the Company’s common stock through March 27, 2020. During the three months ended June 30, 2019 , the Company repurchased and retired 57,551 shares of common stock totaling $974 thousand as part of the repurchase program. Cash Dividends The Company declared quarterly cash dividends on its common stock of $0.06 and $0.03 per share, respectively, for the three months ended June 30, 2019 and 2018 , and $0.11 and $0.06 , respectively, for the six months ended June 30, 2019 and 2018 . Change in Accumulated Other Comprehensive Income (Loss) Components of accumulated other comprehensive income (loss) consisted solely of the change in unrealized gains or losses on securities available-for-sale, net of taxes. Reclassifications from accumulated other comprehensive income (loss) are recorded in the Consolidated Statements of Income either as a gain or loss. The following table presents changes to accumulated other comprehensive income (loss) for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Unrealized gain (loss) on securities available-for-sale: Beginning balance $ (820 ) $ (2,248 ) $ (1,647 ) $ (1,223 ) Other comprehensive income (loss) Unrealized gain (loss) arising during the period 1,638 (515 ) 2,810 (1,960 ) Tax effect of current period changes (480 ) 151 (825 ) 571 Total other comprehensive income (loss) 1,158 (364 ) 1,985 (1,389 ) Balance at end of period $ 338 $ (2,612 ) $ 338 $ (2,612 ) |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation On July 25, 2013, the Company adopted 2013 Equity Based Stock Compensation Plan (“2013 EBSC Plan”) approved by its shareholders to replace the 2003 Stock Option Plan. The 2013 EBSC Plan provides 1,114,446 shares of common stock for equity based compensation awards including incentive and non-qualified stock options and restricted stock awards. As of June 30, 2019 , there were 586,576 shares available for future grants. Share-Based Compensation Expense The Company recognized share-based compensation expense of $162 thousand and $157 thousand , respectively, and realized income tax benefits of $11 thousand and $17 thousand , respectively, related to share-based compensation during the three months ended June 30, 2019 and 2018 . During the six months ended June 30, 2019 and 2018 , The Company recognized share-based compensation expense of $323 thousand and $339 thousand , respectively, and realized income tax benefits of $22 thousand and $38 thousand , respectively, related to share-based compensation. As of June 30, 2019 , the Company had unrecognized share-based compensation expense of $1.2 million related to outstanding stock options that will be recognized over a weighted average period of 2.17 years . Stock Options The Company has issued stock options to certain employees, officers and directors. Stock options are issued at the closing market price on the grant date, and generally have a three -to five -year vesting period and contractual terms of ten years. The following table represents stock option activity as of and for the three months ended June 30, 2019 : Three Months Ended June 30, 2019 ($ in thousands except per share data) Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Contractual Term Aggregated Intrinsic Value Outstanding at beginning of period 874,894 $ 10.03 6.40 years $ 6,493 Exercised (27,055 ) $ 7.53 4.81 years Balance at end of period 847,839 $ 10.11 6.19 years $ 5,877 Exercisable at end of period 503,066 $ 8.65 5.48 years $ 4,219 The following table represents stock option activity as of and for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 ($ in thousands except per share data) Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Contractual Term Aggregated Intrinsic Value Outstanding at beginning of period 898,291 $ 9.81 6.55 years $ 5,243 Granted 10,000 $ 17.47 10.00 years Exercised (60,452 ) $ 6.95 4.66 years Balance at end of period 847,839 $ 10.11 6.19 years $ 5,877 Exercisable at end of period 503,066 $ 8.65 5.48 years $ 4,219 The following table represents information regarding unvested stock options as of and for the six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Number of Shares Weighted-Average Exercise Price Per Share Number of Shares Weighted-Average Exercise Price Per Share Outstanding at beginning of period 344,773 $ 12.23 347,274 $ 12.17 Granted — $ — 10,000 $ 17.47 Vested — $ — (12,501 ) $ 14.75 Balance at end of period 344,773 $ 12.23 344,773 $ 12.23 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $2.8 million and $2.0 million , respectively, and the effective tax rate was 29.5% and 29.9% , respectively, for the three months ended June 30, 2019 and 2018 . For the six months ended June 30, 2019 and 2018 , income tax expense was $5.6 million and $4.7 million , respectively, and the effective tax rate was 29.7% and 29.9% , respectively. At June 30, 2019 and December 31, 2018 , the Company had no unrecognized tax benefits, or accrued interest or penalties. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state jurisdictions. The Company is no longer subject to the assessment of U.S. federal income tax for years before 2014. The statute of limitations for the assessment of California Franchise taxes has expired for tax years before 2013 (other state income and franchise tax statutes of limitations vary by state). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a reconciliation of net income and shares outstanding to the income and number of share used to compute earnings per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands, except per share) 2019 2018 2019 2018 Basic earnings per share: Net income $ 6,601 $ 4,762 $ 13,165 $ 11,026 Weighted-average common shares outstanding 16,017,089 13,432,775 16,008,325 13,425,557 Basic earnings per share $ 0.41 $ 0.35 $ 0.82 $ 0.82 Diluted earnings per share: Net income $ 6,601 $ 4,762 $ 13,165 $ 11,026 Weighted-average commons shares outstanding 16,017,089 13,432,775 16,008,325 13,425,557 Diluted effect of stock options 312,950 195,902 294,949 182,277 Diluted weighted-average common shares outstanding 16,330,039 13,628,677 16,303,274 13,607,834 Diluted earnings per share $ 0.40 $ 0.35 $ 0.81 $ 0.81 There were 15,000 of stock options excluded in computing diluted earnings per share because they were anti-dilutive for three and six months ended June 30, 2019 . There were no stock options excluded in computing diluted earnings per share because they were anti-dilutive for three and six months ended June 30, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit and letters of credit. Those instruments involve to varying degrees, elements of credit, and interest rate risk not recognized in the Company’s consolidated financial statements. As of June 30, 2019 and December 31, 2018 , the Company had the following outstanding financial commitments whose contractual amount represents credit risk: ($ in thousands) June 30, 2019 December 31, 2018 Commitments to extend credit $ 154,453 $ 127,443 Standby letters of credit 2,363 2,998 Commercial letters of credit 532 477 Total $ 157,348 $ 130,918 The Company’s exposure to loan loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for the loans reflected in the consolidated financial statements. The Company maintained reserve for off-balance sheet items of $141 thousand and $139 thousand , respectively, at June 30, 2019 and December 31, 2018 , in Accrued Interest Payable and Other Liabilities in the Consolidated Balance Sheets. 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. Since many of the commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Company evaluates each client’s credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company is based on management’s credit evaluation of the customer. Litigation The Company is involved in various matters of litigation, which have arisen in the ordinary course of business. In the opinion of management, the disposition of pending matters of litigation will not have a material effect on the Company’s consolidated financial statements. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters Under the final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III rules”), the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer was phased in from 0.0% in 2015 to 2.50% by January 1, 2019. Management believes as of June 30, 2019 and December 31, 2018 , the Bank met all capital adequacy requirements to which they are subject to. Based on changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets in August 2018, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums. The Company and the Bank’s capital conservation buffer was 9.18% and 9.05% , respectively, as of June 30, 2019 , and 9.31% and 9.21% , respectively, as of December 31, 2018 . Unrealized gain or loss on securities available-for-sale is not included in computing regulatory capital. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Actual Minimum Capital Requirement To Be Well Capitalized Under Prompt Corrective Provisions ($ in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2019 PCB Bancorp Common tier 1 capital (to risk-weighted assets) $ 222,131 16.20 % $ 61,710 4.5 % N/A N/A Total capital (to risk-weighted assets) 235,599 17.18 % 109,707 8.0 % N/A N/A Tier 1 capital (to risk-weighted assets) 222,131 16.20 % 82,280 6.0 % N/A N/A Tier 1 capital (to average assets) 222,131 12.74 % 69,725 4.0 % N/A N/A Pacific City Bank Common tier 1 capital (to risk-weighted assets) $ 220,342 16.07 % $ 61,709 4.5 % $ 89,135 6.5 % Total capital (to risk-weighted assets) 233,810 17.05 % 109,704 8.0 % 137,130 10.0 % Tier 1 capital (to risk-weighted assets) 220,342 16.07 % 82,278 6.0 % 109,704 8.0 % Tier 1 capital (to average assets) 220,342 12.64 % 69,723 4.0 % 87,154 5.0 % December 31, 2018 PCB Bancorp Common tier 1 capital (to risk-weighted assets) $ 210,871 16.28 % $ 58,273 4.5 % N/A N/A Total capital (to risk-weighted assets) 224,178 17.31 % 103,596 8.0 % N/A N/A Tier 1 capital (to risk-weighted assets) 210,871 16.28 % 77,697 6.0 % N/A N/A Tier 1 capital (to average assets) 210,871 12.60 % 66,930 4.0 % N/A N/A Pacific City Bank Common tier 1 capital (to risk-weighted assets) $ 209,587 16.19 % $ 58,272 4.5 % $ 84,171 6.5 % Total capital (to risk-weighted assets) 222,894 17.21 % 103,594 8.0 % 129,493 10.0 % Tier 1 capital (to risk-weighted assets) 209,587 16.19 % 77,696 6.0 % 103,594 8.0 % Tier 1 capital (to average assets) 209,587 12.53 % 66,929 4.0 % 83,661 5.0 % The California Financial Code provides that a bank may not make a cash distribution to its shareholders in excess of the lesser of the bank’s undivided profits or the bank’s net income for its last three fiscal years less the amount of any distribution made to the bank’s shareholder during the same period. As a California corporation, the Company is subject to the limitations of California law, which allows a corporation to distribute cash or property to shareholders, including a dividend or repurchase or redemption of shares, if the corporation meets either a retained earnings test or a “balance sheet” test. Under the retained earnings test, the Company may make a distribution from retained earnings to the extent that its retained earnings exceed the sum of (a) the amount of the distribution plus (b) the amount, if any, of dividends in arrears on shares with preferential dividend rights. The Company may also make a distribution if, immediately after the distribution, the value of its assets equals or exceeds the sum of (a) its total liabilities plus (b) the liquidation preference of any shares which have a preference upon dissolution over the rights of shareholders receiving the distribution. Indebtedness is not considered a liability if the terms of such indebtedness provide that payment of principal and interest thereon are to be made only if, and to the extent that, a distribution to shareholders could be made under the balance sheet test. The Federal Reserve, the Federal Deposit Insurance Corporation (the “FDIC”) and the California Department of Business Oversight (the “CDBO”) periodically examine the Company’s business, including compliance with laws and regulations. If, as a result of an examination, a banking agency were to determine that the Company’s financial condition, capital resources, asset quality, earnings prospects, management, liquidity or other aspects of any of the Company’s operations had become unsatisfactory, or that the Company was in violation of any law or regulation, they may take a number of different remedial actions as they deem appropriate. These actions include the power to enjoin “unsafe or unsound” practices, to require affirmative action to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced, to direct an increase in Company’s capital, to restrict growth, to assess civil money penalties, to fine or remove officers and directors and, if it is concluded that such conditions cannot be corrected or there is an imminent risk of loss to depositors, to terminate the Company’s deposit insurance and place the Company into receivership or conservatorship. On April 30, 2019, the FDIC, the CDBO and the Bank entered into a stipulation consenting to the issuance of a consent order (the “Order”) relating to the Bank’s BSA/AML. While the Bank attempted to address the concerns raised by the FDIC and CDBO in an informal Agreement dated January 8, 2018, these agencies determined in a subsequent examination of the Bank that it had not satisfactorily addressed these concerns particularly relating to failing to maintain a qualified individual to serve as the BSA compliance officer and ensure that adequate resources are provided to administer an effective BSA/AML compliance program. The Order requires, among other things, that the Bank correct all violations found in the prior examination and to improve its process to better identify and monitor accounts and transactions that pose a greater than normal risk for compliance with BSA/AML. The Order also requires the Board of Directors of the Bank to increase its oversight of the Bank’s compliance with BSA/AML rules and regulations. In addition, the Bank is to ensure that the BSA/AML compliance program is managed by a qualified officer with sufficient experience and resources necessary to administer an effective BSA/AML compliance program, and to seek prior FDIC and CDBO non-objection to a change in such officer or the officer in charge of Office of Foreign Assets Control compliance matters, or material changes to their responsibilities. Further, the Order requires that the Bank develop and maintain an effective BSA/AML compliance program, monitoring mechanisms, validation of risk rating and suspicious activity monitoring, and training programs for staff. Further, the Bank must review and enhance its BSA/AML risk assessment and customer due diligence, complete a BSA/AML staffing assessment and conduct a “look back” to more highly scrutinize certain transactions that occurred during a six month period in 2018 to determine if any suspicious activity requiring reporting went undetected. Finally, the Bank must provide periodic reports of progress to the FDIC and CDBO and provide for independent testing of the overall compliance program to ensure continued compliance, and seek prior FDIC and CDBO non-objection to the establishment of any new branches or other offices, or introduction of new delivery channels, products, services, or lines of business. Subsequent to the Order, the Bank has completed the BSA/AML staffing assessment and the “look back” review to transactions that occurred during a six month period in 2018. In addition, the Bank has reviewed and enhanced BSA/AML risk assessments, as well as customer due diligence, and submitted all required reports to the FDIC and CDBO. Even though the Company believes that the Bank has addressed many of items under the Order, since many of the management and BSA staffing hires have recently assumed their roles at the Bank and are taking steps to improve processes and procedures, it may take some time to address, to the satisfaction of the regulators, the specific issues unique to the Bank’s operation and it is still uncertain whether acceptable progress towards compliance with the Order, as determined in the sole discretion of the FDIC and CDBO, will ultimately be achieved in the future. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Topic 606, “Revenue from Contracts with Customers,” does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as gain or loss associated with mortgage servicing assets and financial guarantees are also not within the scope. Topic 606 is applicable to noninterest income such as deposit related fees, interchange fees, and merchant related income. Noninterest income considered to be within the scope of Topic 606 is discussed below. Service charges and fees on deposits : Deposit account service charges consist of monthly service fees, account analysis fees, non-sufficient funds (“NSF”) charges and other deposit related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. NSF charges, and other deposit account service charges are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time as incurred. Debit card fees : When customers use their debit cards to pay merchants for goods or services, the Company retains a fee from the funds collected from the related deposit account and transfers the remaining funds to the payment network for remittance to the merchant. The performance obligation to the merchant is satisfied and the fee is recognized at the point in time when the funds are collected and transferred to the payment network. Gain (loss) on sale of other real estate owned : The Company’s performance obligation for sale of OREO is the transfer of title and ownership rights of the OREO to the buyer, which occurs at the settlement date when the sale proceeds are received and income is recognized. Wire transfer fees and other service charges : Wire transfer fees and other service charges are transaction based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time as incurred. The following table presents revenue from contracts with customers within the scope of ASC 606 for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Noninterest Income In scope of Topic 606 Service charges and fees on deposits: Monthly service fees $ 29 $ 27 $ 57 $ 52 Account analysis fees 242 241 469 476 Non-sufficient funds charges 73 86 159 153 Other deposit related fees 24 22 47 44 Total service charges and fees on deposits 368 376 732 725 Debit card fees 68 50 133 95 Gain on sale of other real estate owned — — — 3 Wire transfer fees 126 122 235 226 Other service charges 58 49 108 113 Total noninterest income in-scope of Topic 606 $ 620 $ 597 $ 1,208 $ 1,162 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Corporate Name Change. On July 1, 2019, the Company changed its corporate name to “PCB Bancorp” from “Pacific City Financial Corporation.” Dividend Declared on Common Stock. On July 25, 2019 , the Company’s Board of Directors declared a quarterly cash dividend of $0.06 per common share for the third quarter of 2019. The dividend will be paid on or about September 14, 2019 , to shareholders of record as of the close of business on August 30, 2019 . The Company has evaluated the effects of events that have occurred subsequent to June 30, 2019 through the issuance date of these consolidated financial statements (unaudited). Other than the events described above, there have been no material events that would require disclosure in the consolidated financial statements or in the notes to the consolidated financial statements. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to Article 10 of SEC Regulation S-X and other SEC rules and regulations for reporting on the Quarterly Report on Form 10-Q. Accordingly, certain disclosures required by U.S. generally accepted accounting principles (“GAAP”) are not included herein. These interim statements should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2018 filed by the Company with the SEC. The December 31, 2018 balance sheet presented herein has been derived from the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC, but does not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management of the Company, the accompanying unaudited interim consolidated financial statements reflect all of the adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial condition and consolidated results of operations as of the dates and for the periods presented. Certain reclassifications have been made in the prior period financial statements to conform to the current period presentation. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of PCB Bancorp and its wholly owned subsidiary as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 . Significant inter-company accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiary. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are subject to change and such change could have a material effect on the consolidated financial statements. Actual results may differ from those estimates. |
Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Adopted Accounting Pronouncements During the six months ended June 30, 2019 , the following accounting pronouncements applicable to the Company were adopted: In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, “Leases (Topic 842).” In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and ASU 2018-11, “Leases Topic 842, Targeted Improvements,” to provide additional clarification, implantation, and transition guidance on certain aspects of ASU 2016-02. The amendments in ASU 2016-02 require lessees to recognize lease assets and lease liabilities for both leases classified as operating leases and finance leases, except leases with a term of 12 months or less where lessees are permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. For leases with a term of greater than 12 months, lessees are required to recognize a liability to make lease payments and a right-of-use assets representing its right to use the underlying asset for the lease term measured at the present value of the lease payments. ASU 2016-02 and ASU 2018-10 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for a public business entity. Under ASU 2018-11, an additional transition option was provided that would allow entities to not apply the new guidance in the comparative periods they present in their financial statements in the year of adoption. Under this optional transition method, entities will be allowed to continue using and presenting leases under Accounting Standard Codification (“ASC”) 840 for prior years comparative periods and then prospectively adopt ASC 842 on January 1, 2019, recognizing a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this guidance in the first quarter of 2019 using the optional transition method with a cumulative effect adjustment to retained earnings without restating prior period financial statements for comparable amounts. The Company elected the package of practical expedients permitted under the transition guidance within this ASU, which allowed the Company to carry forward the historical lease classification. The Company completed its review of its existing lease contracts and service contracts that may include embedded leases, and updated processes and internal controls for leasing activities. The Company recognized right-of-use lease assets and liabilities of $9.6 million and $10.6 million , respectively, with a cumulative effect adjustment of $53 thousand to retained earnings at the date of adoption. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements other than the recognition of right-of-use lease assets and liabilities. See Note 6 for additional information. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities acquired at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted The following are recently issued accounting pronouncements applicable to the Company that have not yet been adopted: In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” The amendments in this ASU require that entities change the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. It includes financial assets such as loan receivables, held-to-maturity debt securities, net investment in leases that are not accounted for at fair value through net income, and certain off-balance sheet credit exposures. This ASU is effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In July 2019, the FASB voted to tentatively delay the effective date of this ASU to 2023 for certain SEC filers that are Smaller Reporting Companies, which would apply to the Company. The FASB plans to issue two proposed ASUs in the near future related to the proposed delay in the effectiveness of this ASU. The Company has formed a committee, developed an implementation plan, and engaged a software vendor to assist the Company to build a model. The Company is in the process of completing a readiness assessment and is engaged in the implementation phase of the project. The Company is working on: (i) developing a new expected loss model with supportable assumptions; (ii) identifying data, reporting, and disclosure gaps; (iii) assessing updates to accounting and credit risk policies; and (iv) documenting new processes and controls. Based on the Company’s initial assessment of this ASU, the Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses which could potentially have a material impact on its consolidated financial statements as of the beginning of the first reporting period in which this ASU is effective. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of dates indicated: Fair Value Measurement Level ($ in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total June 30, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ 68,497 $ — $ 68,497 Residential collateralized mortgage obligations — 52,121 — 52,121 SBA loan pool securities — 21,131 — 21,131 Municipal bonds — 790 — 790 Total securities available-for-sale — 142,539 — 142,539 Total assets measured at fair value on a recurring basis $ — $ 142,539 $ — $ 142,539 Total liabilities measured at fair value on a recurring basis $ — $ — $ — $ — December 31, 2018 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ 67,921 $ — $ 67,921 Residential collateralized mortgage obligations — 55,649 — 55,649 SBA loan pool securities — 22,632 — 22,632 Municipal bonds — 789 — 789 Total securities available-for-sale — 146,991 — 146,991 Total assets measured at fair value on a recurring basis $ — $ 146,991 $ — $ 146,991 Total liabilities measured at fair value on a recurring basis $ — $ — $ — $ — |
Schedule of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following table presents the Company’s assets and liabilities measured at fair value on a non-recurring basis as of dates indicated: Fair Value Measurement Level ($ in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total June 30, 2019 Total assets measured at fair value on a non-recurring basis $ — $ — $ — $ — Total liabilities measured at fair value on a non-recurring basis $ — $ — $ — $ — December 31, 2018 Impaired loans: SBA property $ — $ — $ 51 $ 51 Total impaired loans — — 51 51 Total assets measured at fair value on a non-recurring basis $ — $ — $ 51 $ 51 Total liabilities measured at fair value on a non-recurring basis $ — $ — $ — $ — |
Schedule of Gain on Sale of OREO and OREO Valuation Write-downs | For assets measured at fair value, the following table presents the total net losses, which include charge-offs, recoveries, specific reserves, impairment on servicing assets, gain (loss) on sale of OREO, and OREO valuation write-downs recorded for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Collateral dependent impaired loans: Commercial property $ — $ (53 ) $ — $ (53 ) SBA property (18 ) (25 ) (20 ) (151 ) Servicing assets - SBA property loans — (63 ) — (63 ) Other real estate owned — — — 3 Net losses recognized $ (18 ) $ (141 ) $ (20 ) $ (264 ) |
Schedule of Carrying Value and Estimated Fair Values of Financial Assets and Liabilities | The following table presents the carrying value and estimated fair values of financial assets and liabilities as of the dates indicated: Carrying Value Fair Value Fair Value Measurements ($ in thousands) Level 1 Level 2 Level 3 June 30, 2019 Financial assets: Interest-bearing deposits in other financial institutions $ 114,205 $ 114,205 $ 114,205 $ — $ — Securities available-for-sale 142,539 142,539 — 142,539 — Securities held-to-maturity 22,685 22,813 — 22,813 — Loans held-for-sale 440 449 — 449 — Net loans held-for-investment 1,382,229 1,391,534 — — 1,391,534 FHLB and other restricted stock 8,345 N/A N/A N/A N/A Accrued interest receivable 5,314 5,314 83 551 4,680 Financial liabilities: Deposits $ 1,446,526 $ 1,451,505 $ — $ — $ 1,451,505 FHLB advances 35,000 35,075 — 35,075 — Accrued interest payable 5,343 5,343 — 36 5,307 December 31, 2018 Financial assets: Interest-bearing deposits in other financial institutions $ 138,152 $ 138,152 $ 138,152 $ — $ — Securities available-for-sale 146,991 146,991 — 146,991 — Securities held-to-maturity 21,760 21,152 — 21,152 — Loans held-for-sale 5,781 6,175 — 6,175 — Net loans held-for-investment 1,325,515 1,337,299 — — 1,337,299 FHLB and other restricted stock 7,433 N/A N/A N/A N/A Accrued interest receivable 5,178 5,178 112 568 4,498 Financial liabilities: Deposits $ 1,443,753 $ 1,425,023 $ — $ — $ 1,425,023 FHLB advances 30,000 29,641 — 29,641 — Accrued interest payable 6,223 6,223 — 1 6,222 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The following table presents the amortized cost and fair value of the investment securities as of the dates indicated: ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value June 30, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 68,067 $ 755 $ (325 ) $ 68,497 Residential collateralized mortgage obligations 52,406 132 (417 ) 52,121 SBA loan pool securities 21,019 164 (52 ) 21,131 Municipal bonds 774 16 — 790 Total securities available-for-sale $ 142,266 $ 1,067 $ (794 ) $ 142,539 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 17,601 $ 20 $ (172 ) $ 17,449 Municipal bonds 5,084 281 (1 ) 5,364 Total securities held-to-maturity $ 22,685 $ 301 $ (173 ) $ 22,813 December 31, 2018 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 68,975 $ 177 $ (1,231 ) $ 67,921 Residential collateralized mortgage obligations 56,625 55 (1,031 ) 55,649 SBA loan pool securities 23,144 — (512 ) 22,632 Municipal bonds 784 5 — 789 Total securities available-for-sale $ 149,528 $ 237 $ (2,774 ) $ 146,991 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 16,659 $ — $ (602 ) $ 16,057 Municipal bonds 5,101 37 (43 ) 5,095 Total securities held-to-maturity $ 21,760 $ 37 $ (645 ) $ 21,152 |
Debt Securities, Held-to-maturity | The following table presents the amortized cost and fair value of the investment securities as of the dates indicated: ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value June 30, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 68,067 $ 755 $ (325 ) $ 68,497 Residential collateralized mortgage obligations 52,406 132 (417 ) 52,121 SBA loan pool securities 21,019 164 (52 ) 21,131 Municipal bonds 774 16 — 790 Total securities available-for-sale $ 142,266 $ 1,067 $ (794 ) $ 142,539 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 17,601 $ 20 $ (172 ) $ 17,449 Municipal bonds 5,084 281 (1 ) 5,364 Total securities held-to-maturity $ 22,685 $ 301 $ (173 ) $ 22,813 December 31, 2018 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 68,975 $ 177 $ (1,231 ) $ 67,921 Residential collateralized mortgage obligations 56,625 55 (1,031 ) 55,649 SBA loan pool securities 23,144 — (512 ) 22,632 Municipal bonds 784 5 — 789 Total securities available-for-sale $ 149,528 $ 237 $ (2,774 ) $ 146,991 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 16,659 $ — $ (602 ) $ 16,057 Municipal bonds 5,101 37 (43 ) 5,095 Total securities held-to-maturity $ 21,760 $ 37 $ (645 ) $ 21,152 |
Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and fair value of the investment securities by contractual maturity as of June 30, 2019 . Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Securities Available-For-Sale Securities Held-To-Maturity ($ in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ 131 $ 131 One to five years — — 1,424 1,464 Five to ten years 774 790 1,208 1,244 Greater than ten years — — 2,321 2,525 Residential mortgage-backed securities, residential collateralized mortgage obligations and SBA loan pool securities 141,492 141,749 17,601 17,449 Total $ 142,266 $ 142,539 $ 22,685 $ 22,813 |
Realized Gain (Loss) on Investments | The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Gross realized gains on sales and calls of securities available-for-sale $ — $ — $ — $ — Gross realized losses on sales and calls of securities available-for-sale — — — — Net realized gains (losses) on sales and calls of securities available-for-sale $ — $ — $ — $ — Proceeds from sales and calls of securities available-for-sale $ — $ — $ — $ 1,060 Tax expense on sales and calls of securities available-for-sale $ — $ — $ — $ — |
Schedule of Unrealized Loss on Investments | The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position as of the dates indicated: Length of Time that Individual Securities Have Been In a Continuous Unrealized Loss Position Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities June 30, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ — — $ 30,778 $ (325 ) 37 $ 30,778 $ (325 ) 37 Residential collateralized mortgage obligations 10,175 (87 ) 6 34,408 (330 ) 33 44,583 (417 ) 39 SBA loan pool securities — — — 5,113 (52 ) 6 5,113 (52 ) 6 Total securities available-for-sale $ 10,175 $ (87 ) 6 $ 70,299 $ (707 ) 76 $ 80,474 $ (794 ) 82 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ — $ — — $ 11,803 $ (172 ) 12 $ 11,803 $ (172 ) 12 Municipal bonds — — — 131 (1 ) 1 131 (1 ) 1 Total securities held-to-maturity $ — $ — — $ 11,934 $ (173 ) 13 $ 11,934 $ (173 ) 13 December 31, 2018 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 1,868 $ (6 ) 2 $ 41,845 $ (1,225 ) 48 $ 43,713 $ (1,231 ) 50 Residential collateralized mortgage obligations 7,067 (29 ) 5 34,943 (1,002 ) 34 42,010 (1,031 ) 39 SBA loan pool securities 2,809 (7 ) 2 19,823 (505 ) 18 22,632 (512 ) 20 Total securities available-for-sale $ 11,744 $ (42 ) 9 $ 96,611 $ (2,732 ) 100 $ 108,355 $ (2,774 ) 109 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 2,022 $ (23 ) 1 $ 14,035 $ (579 ) 15 $ 16,057 $ (602 ) 16 Municipal bonds 2,600 (38 ) 8 497 (5 ) 3 3,097 (43 ) 11 Total securities held-to-maturity $ 4,622 $ (61 ) 9 $ 14,532 $ (584 ) 18 $ 19,154 $ (645 ) 27 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans Held-For-Investment | The following table presents, by recorded investment, the composition of the Company’s loans held-for-investment (net of deferred fees and costs) as of the dates indicated: ($ in thousands) June 30, 2019 December 31, 2018 Real estate loans: Commercial property $ 748,526 $ 709,409 Residential property 240,630 233,816 SBA property 128,208 120,939 Construction 22,455 27,323 Total real estate loans 1,139,819 1,091,487 Commercial and industrial loans: Commercial term 105,651 102,133 Commercial lines of credit 85,197 80,473 SBA commercial term 24,762 27,147 Trade finance 16,334 11,521 Total commercial and industrial loans 231,944 221,274 Other consumer loans 23,794 25,921 Loans held-for-investment 1,395,557 1,338,682 Allowance for loan losses (13,328 ) (13,167 ) Net loans held-for-investment $ 1,382,229 $ 1,325,515 |
Allowance for Loan Losses | The following table presents the activities in allowance for loan losses by portfolio segment, which is consistent with the Company’s methodology for determining allowance for loan losses, for the three months ended June 30, 2019 and 2018 : Three Months Ended ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total Balance at April 1, 2019 $ 9,324 $ 3,608 $ 205 $ 13,137 Charge-offs (17 ) (168 ) (67 ) (252 ) Recoveries on loans previously charged off — 33 16 49 Provision (reversal) for loan losses 404 (47 ) 37 394 Balance at June 30, 2019 $ 9,711 $ 3,426 $ 191 $ 13,328 Balance at April 1, 2018 $ 9,076 $ 3,100 $ 195 $ 12,371 Charge-offs (79 ) (90 ) (127 ) (296 ) Recoveries on loans previously charged off 50 54 17 121 Provision for loan losses 276 44 105 425 Balance at June 30, 2018 $ 9,323 $ 3,108 $ 190 $ 12,621 The following table presents the activities in allowance for loan losses by portfolio segment, which is consistent with the Company’s methodology for determining allowance for loan losses, for the six months ended June 30, 2019 and 2018 : Six Months Ended ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total Balance at January 1, 2019 $ 9,104 $ 3,877 $ 186 $ 13,167 Charge-offs (19 ) (168 ) (111 ) (298 ) Recoveries on loans previously charged off 4 74 72 150 Provision (reversal) for loan losses 622 (357 ) 44 309 Balance at June 30, 2019 $ 9,711 $ 3,426 $ 191 $ 13,328 Balance at January 1, 2018 $ 8,507 $ 3,548 $ 169 $ 12,224 Charge-offs (204 ) (90 ) (141 ) (435 ) Recoveries on loans previously charged off 52 234 26 312 Provision (reversal) for loan losses 968 (584 ) 136 520 Balance at June 30, 2018 $ 9,323 $ 3,108 $ 190 $ 12,621 The following tables present the information on allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of the dates indicated: ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total June 30, 2019 Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment 9,711 3,426 191 13,328 Total $ 9,711 $ 3,426 $ 191 $ 13,328 Loans receivable: Individually evaluated for impairment $ 1,676 $ 103 $ — $ 1,779 Collectively evaluated for impairment 1,138,143 231,841 23,794 1,393,778 Total $ 1,139,819 $ 231,944 $ 23,794 $ 1,395,557 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 1 $ 93 $ — $ 94 Collectively evaluated for impairment 9,103 3,784 186 13,073 Total $ 9,104 $ 3,877 $ 186 $ 13,167 Loans receivable: Individually evaluated for impairment $ 1,156 $ 320 $ — $ 1,476 Collectively evaluated for impairment 1,090,331 220,954 25,921 1,337,206 Total $ 1,091,487 $ 221,274 $ 25,921 $ 1,338,682 |
Risk Categories for Loans by Portfolio Segment | The following table presents the risk categories for the recoded investment in loans by portfolio segment as of dates indicated: ($ in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2019 Real estate loans: Commercial property $ 747,877 $ — $ 649 $ — $ 748,526 Residential property 240,630 — — — 240,630 SBA property 121,684 73 6,451 — 128,208 Construction 19,228 3,227 — — 22,455 Commercial and industrial loans: Commercial term 105,638 — 13 — 105,651 Commercial lines of credit 85,197 — — — 85,197 SBA commercial term 24,378 54 330 — 24,762 Trade finance 16,334 — — — 16,334 Other consumer loans 23,753 — 41 — 23,794 Total $ 1,384,719 $ 3,354 $ 7,484 $ — $ 1,395,557 December 31, 2018 Real estate loans: Commercial property $ 708,742 $ — $ 667 $ — $ 709,409 Residential property 233,514 — 302 — 233,816 SBA property 115,543 74 5,322 — 120,939 Construction 24,325 2,998 — — 27,323 Commercial and industrial loans: Commercial term 102,106 — 27 — 102,133 Commercial lines of credit 79,874 599 — — 80,473 SBA commercial term 26,616 — 531 — 27,147 Trade finance 11,521 — — — 11,521 Other consumer loans 25,905 — 16 — 25,921 Total $ 1,328,146 $ 3,671 $ 6,865 $ — $ 1,338,682 |
Aging of Past Due Accruing Loans and Nonaccrual Loans by Segment | The following table presents the aging of past due recorded investment in accruing loans and nonaccrual loans by portfolio segment as of dates indicated: Still Accruing ($ in thousands) 30 to 59 Days Past Due 60 to 89 Days Past Due 90 or More Days Past Due Nonaccrual Total Past Due and Nonaccrual June 30, 2019 Real estate loans: SBA property $ 375 $ — $ — $ 1,372 $ 1,747 Commercial and industrial loans: SBA commercial term 343 — — 16 359 Other consumer loans 86 5 — 41 132 Total $ 804 $ 5 $ — $ 1,429 $ 2,238 December 31, 2018 Real estate loans: Residential property $ 95 $ — $ — $ 302 $ 397 SBA property 183 — — 540 723 Commercial and industrial loans: SBA commercial term — — — 203 203 Other consumer loans 90 9 — 16 115 Total $ 368 $ 9 $ — $ 1,061 $ 1,438 |
Impairment by Portfolio Segment | The following table presents loans individually evaluated for impairment by portfolio segment as of the dates indicated. The recorded investment presents customer balances net of any partial charge-offs recognized on the loans and net of any deferred fees and costs. With No Allowance Recorded With an Allowance Recorded ($ in thousands) Recorded Investment Unpaid Principal Balance Recorded Investment Unpaid Principal Balance Related Allowance June 30, 2019 Real estate loans: SBA property $ 1,676 $ 1,733 $ — $ — $ — Commercial and industrial loans: Commercial term 47 47 — — — SBA commercial term 56 70 — — — Total $ 1,779 $ 1,850 $ — $ — $ — December 31, 2018 Real estate loans: Residential property $ 302 $ 303 $ — $ — $ — SBA property 802 854 52 50 1 Commercial and industrial loans: Commercial term 68 69 — — — SBA commercial term 73 99 179 189 93 Total $ 1,245 $ 1,325 $ 231 $ 239 $ 94 The following table presents information on the recorded investment in impaired loans by portfolio segment for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 ($ in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Real estate loans: Commercial property $ — $ — $ 275 $ — Residential property — — 365 — SBA property 1,666 6 1,538 5 Commercial and industrial loans: Commercial term 52 1 136 2 Commercial lines of credit — — 20 — SBA commercial term 59 1 567 1 Total $ 1,777 $ 8 $ 2,901 $ 8 The following table presents information on the recorded investment in impaired loans by portfolio segment for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 ($ in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Real estate loans: Commercial property $ — $ — $ 295 $ — Residential property 76 — 547 — SBA property 1,507 12 1,362 10 Commercial and industrial loans: Commercial term 57 2 162 5 Commercial lines of credit — — 13 — SBA commercial term 150 2 509 6 Total $ 1,790 $ 16 $ 2,888 $ 21 The following presents a summary of interest foregone on impaired loans for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Interest income that would have been recognized had impaired loans performed in accordance with their original terms $ 32 $ 47 $ 64 $ 128 Less: interest income recognized on impaired loans on a cash basis (8 ) (8 ) (16 ) (54 ) Interest income foregone on impaired loans $ 24 $ 39 $ 48 $ 74 |
Modified TDRs by Portfolio Segment | The following table presents information on loans that were modified as TDRs for which there was a payment default within twelve months following the modification for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 ($ in thousands) Number of Loans Recorded Investment at Date of Default Number of Loans Recorded Investment at Date of Default Commercial and industrial loans: SBA commercial term — $ — 2 $ 233 Total — $ — 2 $ 233 The following table presents information on loans that were modified as TDRs for which there was a payment default within twelve months following the modification for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 ($ in thousands) Number of Loans Recorded Investment at Date of Default Number of Loans Recorded Investment at Date of Default Commercial and industrial loans: SBA commercial term — $ — 2 $ 233 Total — $ — 2 $ 233 The following table presents the composition of loans that were modified as TDRs by portfolio segment as of the dates indicated: June 30, 2019 December 31, 2018 ($ in thousands) Accruing Nonaccrual Total Accruing Nonaccrual Total Real estate loans: SBA property $ 304 $ 131 $ 435 $ 315 $ — $ 315 Commercial and industrial loans: Commercial term 47 — 47 68 — 68 SBA commercial term 40 — 40 49 131 180 Total $ 391 $ 131 $ 522 $ 432 $ 131 $ 563 The following table presents information on new loans that were modified as TDRs for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans: SBA property (1) 1 $ 131 $ 131 — $ — $ — Total 1 $ 131 $ 131 — $ — $ — (1) Modified by deferral of principal payment. The following table presents information on new loans that were modified as TDRs for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans: SBA property (1) 1 $ 131 $ 131 — $ — $ — Total 1 $ 131 $ 131 — $ — $ — (1) Modified by deferral of principal payment |
Loans Held-for-Sale | The following table presents a composition of loans held-for-sale as of the dates indicated: ($ in thousands) June 30, 2019 December 31, 2018 Real estate loans: Residential property $ 355 $ — SBA property — 5,481 Commercial and industrial loans: SBA commercial term 85 300 Total $ 440 $ 5,781 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets with Key Assumptions Used to Estimate Fair Value | The following table presents the composition of servicing assets with key assumptions used to estimate the fair value: June 30, 2019 December 31, 2018 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Carrying amount $ 204 $ 6,094 $ 932 $ 244 $ 6,349 $ 1,073 Fair value $ 210 $ 6,861 $ 1,058 $ 298 $ 6,937 $ 1,206 Discount rate 11.25 % 13.25 % 12.75 % 11.25 % 13.25 % 12.75 % Prepayment speed 31.00 % 15.18 % 15.69 % 25.00 % 14.12 % 13.55 % Weighted average remaining life 24.7 years 21.1 years 7.2 years 25.2 years 21.1 years 7.4 years Underlying loans being serviced $ 38,487 $ 379,345 $ 86,262 $ 45,728 $ 367,856 $ 93,073 |
Schedule of Servicing Asset | The following table presents activity in servicing assets for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Balance at beginning of period $ 221 $ 6,277 $ 987 $ 290 $ 7,375 $ 1,225 Additions — 386 56 22 132 60 Amortization (17 ) (569 ) (111 ) (27 ) (504 ) (120 ) Impairment — — — — (63 ) — Balance at end of period $ 204 $ 6,094 $ 932 $ 285 $ 6,940 $ 1,165 The following table presents activity in servicing assets for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Balance at beginning of period $ 244 $ 6,349 $ 1,073 $ 308 $ 7,369 $ 1,296 Additions — 670 107 22 568 134 Amortization (40 ) (925 ) (248 ) (45 ) (934 ) (265 ) Impairment — — — — (63 ) — Balance at end of period $ 204 $ 6,094 $ 932 $ 285 $ 6,940 $ 1,165 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Operating Lease Cost and Supplemental Information | The following table presents supplemental balance sheet information related to leases as of June 30, 2019 : ($ in thousands) June 30, 2019 Operating leases: Operating lease assets $ 10,105 Operating lease liabilities 11,131 Weighted-average remaining lease term 5.4 years Weighted-average discount rate 2.81 % The following table presents operating lease cost and supplemental cash flow information related to leases for the periods indicated: ($ in thousands) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost (1) $ 649 $ 1,273 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases — — Right of use assets obtained in exchange for lease obligations 1,523 1,588 (1) Included in Occupancy and Equipment on the Consolidated Statements of Income. Operating lease cost for the three and six months ended June 30, 2018 was under Topic 840. |
Maturities of Operating Lease Liabilities | The following table presets maturities of operating lease liabilities as of June 30, 2019 : ($ in thousands) June 30, 2019 Maturities: 2019 $ 1,347 2020 2,675 2021 2,283 2022 2,171 2023 1,828 After 2023 1,899 Total lease payment 12,203 Imputed Interest (1,072 ) Present value of operating lease liabilities $ 11,131 |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents changes to accumulated other comprehensive income (loss) for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Unrealized gain (loss) on securities available-for-sale: Beginning balance $ (820 ) $ (2,248 ) $ (1,647 ) $ (1,223 ) Other comprehensive income (loss) Unrealized gain (loss) arising during the period 1,638 (515 ) 2,810 (1,960 ) Tax effect of current period changes (480 ) 151 (825 ) 571 Total other comprehensive income (loss) 1,158 (364 ) 1,985 (1,389 ) Balance at end of period $ 338 $ (2,612 ) $ 338 $ (2,612 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity | The following table represents stock option activity as of and for the three months ended June 30, 2019 : Three Months Ended June 30, 2019 ($ in thousands except per share data) Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Contractual Term Aggregated Intrinsic Value Outstanding at beginning of period 874,894 $ 10.03 6.40 years $ 6,493 Exercised (27,055 ) $ 7.53 4.81 years Balance at end of period 847,839 $ 10.11 6.19 years $ 5,877 Exercisable at end of period 503,066 $ 8.65 5.48 years $ 4,219 The following table represents stock option activity as of and for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 ($ in thousands except per share data) Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Contractual Term Aggregated Intrinsic Value Outstanding at beginning of period 898,291 $ 9.81 6.55 years $ 5,243 Granted 10,000 $ 17.47 10.00 years Exercised (60,452 ) $ 6.95 4.66 years Balance at end of period 847,839 $ 10.11 6.19 years $ 5,877 Exercisable at end of period 503,066 $ 8.65 5.48 years $ 4,219 The following table represents information regarding unvested stock options as of and for the six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Number of Shares Weighted-Average Exercise Price Per Share Number of Shares Weighted-Average Exercise Price Per Share Outstanding at beginning of period 344,773 $ 12.23 347,274 $ 12.17 Granted — $ — 10,000 $ 17.47 Vested — $ — (12,501 ) $ 14.75 Balance at end of period 344,773 $ 12.23 344,773 $ 12.23 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of net income and shares outstanding to the income and number of share used to compute earnings per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands, except per share) 2019 2018 2019 2018 Basic earnings per share: Net income $ 6,601 $ 4,762 $ 13,165 $ 11,026 Weighted-average common shares outstanding 16,017,089 13,432,775 16,008,325 13,425,557 Basic earnings per share $ 0.41 $ 0.35 $ 0.82 $ 0.82 Diluted earnings per share: Net income $ 6,601 $ 4,762 $ 13,165 $ 11,026 Weighted-average commons shares outstanding 16,017,089 13,432,775 16,008,325 13,425,557 Diluted effect of stock options 312,950 195,902 294,949 182,277 Diluted weighted-average common shares outstanding 16,330,039 13,628,677 16,303,274 13,607,834 Diluted earnings per share $ 0.40 $ 0.35 $ 0.81 $ 0.81 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Outstanding Financial Commitments | As of June 30, 2019 and December 31, 2018 , the Company had the following outstanding financial commitments whose contractual amount represents credit risk: ($ in thousands) June 30, 2019 December 31, 2018 Commitments to extend credit $ 154,453 $ 127,443 Standby letters of credit 2,363 2,998 Commercial letters of credit 532 477 Total $ 157,348 $ 130,918 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Regulatory Capital Amounts and Ratios | The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Actual Minimum Capital Requirement To Be Well Capitalized Under Prompt Corrective Provisions ($ in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2019 PCB Bancorp Common tier 1 capital (to risk-weighted assets) $ 222,131 16.20 % $ 61,710 4.5 % N/A N/A Total capital (to risk-weighted assets) 235,599 17.18 % 109,707 8.0 % N/A N/A Tier 1 capital (to risk-weighted assets) 222,131 16.20 % 82,280 6.0 % N/A N/A Tier 1 capital (to average assets) 222,131 12.74 % 69,725 4.0 % N/A N/A Pacific City Bank Common tier 1 capital (to risk-weighted assets) $ 220,342 16.07 % $ 61,709 4.5 % $ 89,135 6.5 % Total capital (to risk-weighted assets) 233,810 17.05 % 109,704 8.0 % 137,130 10.0 % Tier 1 capital (to risk-weighted assets) 220,342 16.07 % 82,278 6.0 % 109,704 8.0 % Tier 1 capital (to average assets) 220,342 12.64 % 69,723 4.0 % 87,154 5.0 % December 31, 2018 PCB Bancorp Common tier 1 capital (to risk-weighted assets) $ 210,871 16.28 % $ 58,273 4.5 % N/A N/A Total capital (to risk-weighted assets) 224,178 17.31 % 103,596 8.0 % N/A N/A Tier 1 capital (to risk-weighted assets) 210,871 16.28 % 77,697 6.0 % N/A N/A Tier 1 capital (to average assets) 210,871 12.60 % 66,930 4.0 % N/A N/A Pacific City Bank Common tier 1 capital (to risk-weighted assets) $ 209,587 16.19 % $ 58,272 4.5 % $ 84,171 6.5 % Total capital (to risk-weighted assets) 222,894 17.21 % 103,594 8.0 % 129,493 10.0 % Tier 1 capital (to risk-weighted assets) 209,587 16.19 % 77,696 6.0 % 103,594 8.0 % Tier 1 capital (to average assets) 209,587 12.53 % 66,929 4.0 % 83,661 5.0 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contracts with Customers | The following table presents revenue from contracts with customers within the scope of ASC 606 for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Noninterest Income In scope of Topic 606 Service charges and fees on deposits: Monthly service fees $ 29 $ 27 $ 57 $ 52 Account analysis fees 242 241 469 476 Non-sufficient funds charges 73 86 159 153 Other deposit related fees 24 22 47 44 Total service charges and fees on deposits 368 376 732 725 Debit card fees 68 50 133 95 Gain on sale of other real estate owned — — — 3 Wire transfer fees 126 122 235 226 Other service charges 58 49 108 113 Total noninterest income in-scope of Topic 606 $ 620 $ 597 $ 1,208 $ 1,162 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | Jun. 30, 2019USD ($)branchoffice | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Product Information [Line Items] | |||
Number of loan production offices | office | 10 | ||
Right-of-use lease assets | $ 10,105 | $ 0 | |
Operating lease liabilities | $ 11,131 | 0 | |
ASU 2016-02 | |||
Product Information [Line Items] | |||
Right-of-use lease assets | $ 9,600 | ||
Operating lease liabilities | 10,600 | ||
Cumulative effect adjustment to retained earnings | 53 | ||
ASU 2016-02 | Retained Earnings | |||
Product Information [Line Items] | |||
Cumulative effect adjustment to retained earnings | $ 53 | $ 53 | |
California | |||
Product Information [Line Items] | |||
Number of full-service branches | branch | 11 | ||
New Jersey | |||
Product Information [Line Items] | |||
Number of full-service branches | branch | 1 | ||
New York | |||
Product Information [Line Items] | |||
Number of full-service branches | branch | 1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale: | ||
Total securities available-for-sale | $ 142,539 | $ 146,991 |
Residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 68,497 | 67,921 |
Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 52,121 | 55,649 |
Municipal bonds | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 790 | 789 |
Recurring | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 142,539 | 146,991 |
Total assets measured at fair value on a recurring basis | 142,539 | 146,991 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Recurring | Residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 68,497 | 67,921 |
Recurring | Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 52,121 | 55,649 |
Recurring | SBA loan pool securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 21,131 | 22,632 |
Recurring | Municipal bonds | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 790 | 789 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | SBA loan pool securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 142,539 | 146,991 |
Total assets measured at fair value on a recurring basis | 142,539 | 146,991 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 68,497 | 67,921 |
Recurring | Significant Other Observable Inputs (Level 2) | Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 52,121 | 55,649 |
Recurring | Significant Other Observable Inputs (Level 2) | SBA loan pool securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 21,131 | 22,632 |
Recurring | Significant Other Observable Inputs (Level 2) | Municipal bonds | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 790 | 789 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | SBA loan pool securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Municipal bonds | ||
Securities available-for-sale: | ||
Total securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired loans: | ||
SBA property | $ 51 | |
Total impaired loans | 51 | |
Total assets measured at fair value on a recurring basis | $ 0 | 51 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Impaired loans: | ||
SBA property | 0 | |
Total impaired loans | 0 | |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Impaired loans: | ||
SBA property | 0 | |
Total impaired loans | 0 | |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Impaired loans: | ||
SBA property | 51 | |
Total impaired loans | 51 | |
Total assets measured at fair value on a recurring basis | 0 | 51 |
Total liabilities measured at fair value on a recurring basis | $ 0 | $ 0 |
Fair Value Measurements - Other
Fair Value Measurements - Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | $ (18) | $ (141) | $ (20) | $ (264) |
Commercial property | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | 0 | (53) | 0 | (53) |
SBA property | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | (18) | (25) | (20) | (151) |
Servicing assets - SBA property loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | 0 | (63) | 0 | (63) |
Other real estate owned | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | $ 0 | $ 0 | $ 0 | $ 3 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Securities available-for-sale | $ 142,539 | $ 146,991 |
Securities held-to-maturity | 22,685 | 21,760 |
Carrying Value | ||
Financial assets: | ||
Interest-bearing deposits in other financial institutions | 114,205 | 138,152 |
Securities available-for-sale | 142,539 | 146,991 |
Securities held-to-maturity | 22,685 | 21,760 |
Loans held-for-sale | 440 | 5,781 |
Net loans held-for-investment | 1,382,229 | 1,325,515 |
FHLB and other restricted stock | 8,345 | 7,433 |
Accrued interest receivable | 5,314 | 5,178 |
Financial liabilities: | ||
Deposits | 1,446,526 | 1,443,753 |
FHLB advances | 35,000 | 30,000 |
Accrued interest payable | 5,343 | 6,223 |
Fair Value | ||
Financial assets: | ||
Interest-bearing deposits in other financial institutions | 114,205 | 138,152 |
Securities available-for-sale | 142,539 | 146,991 |
Securities held-to-maturity | 22,813 | 21,152 |
Loans held-for-sale | 449 | 6,175 |
Net loans held-for-investment | 1,391,534 | 1,337,299 |
Accrued interest receivable | 5,314 | 5,178 |
Financial liabilities: | ||
Deposits | 1,451,505 | 1,425,023 |
FHLB advances | 35,075 | 29,641 |
Accrued interest payable | 5,343 | 6,223 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Interest-bearing deposits in other financial institutions | 114,205 | 138,152 |
Securities available-for-sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Net loans held-for-investment | 0 | 0 |
Accrued interest receivable | 83 | 112 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Interest-bearing deposits in other financial institutions | 0 | 0 |
Securities available-for-sale | 142,539 | 146,991 |
Securities held-to-maturity | 22,813 | 21,152 |
Loans held-for-sale | 449 | 6,175 |
Net loans held-for-investment | 0 | 0 |
Accrued interest receivable | 551 | 568 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB advances | 35,075 | 29,641 |
Accrued interest payable | 36 | 1 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Interest-bearing deposits in other financial institutions | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Net loans held-for-investment | 1,391,534 | 1,337,299 |
Accrued interest receivable | 4,680 | 4,498 |
Financial liabilities: | ||
Deposits | 1,451,505 | 1,425,023 |
FHLB advances | 0 | 0 |
Accrued interest payable | $ 5,307 | $ 6,222 |
Investment Securities - Summary
Investment Securities - Summary of Debt and Equity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale: | ||
Amortized Cost | $ 142,266 | $ 149,528 |
Gross Unrealized Gain | 1,067 | 237 |
Gross Unrealized Loss | (794) | (2,774) |
Securities available-for-sale, at fair value | 142,539 | 146,991 |
Securities held-to-maturity: | ||
Amortized Cost | 22,685 | 21,760 |
Gross Unrealized Gain | 301 | 37 |
Gross Unrealized Loss | (173) | (645) |
Fair Value | 22,813 | 21,152 |
Pledged securities for collateral | 101,000 | 112,200 |
Residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Amortized Cost | 68,067 | 68,975 |
Gross Unrealized Gain | 755 | 177 |
Gross Unrealized Loss | (325) | (1,231) |
Securities available-for-sale, at fair value | 68,497 | 67,921 |
Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Amortized Cost | 52,406 | 56,625 |
Gross Unrealized Gain | 132 | 55 |
Gross Unrealized Loss | (417) | (1,031) |
Securities available-for-sale, at fair value | 52,121 | 55,649 |
Securities held-to-maturity: | ||
Amortized Cost | 17,601 | 16,659 |
Gross Unrealized Gain | 20 | 0 |
Gross Unrealized Loss | (172) | (602) |
Fair Value | 17,449 | 16,057 |
SBA loan pool securities | ||
Securities available-for-sale: | ||
Amortized Cost | 21,019 | 23,144 |
Gross Unrealized Gain | 164 | 0 |
Gross Unrealized Loss | (52) | (512) |
Securities available-for-sale, at fair value | 21,131 | 22,632 |
Securities held-to-maturity: | ||
Amortized Cost | 5,084 | 5,101 |
Gross Unrealized Gain | 281 | 37 |
Gross Unrealized Loss | (1) | (43) |
Fair Value | 5,364 | 5,095 |
Municipal bonds | ||
Securities available-for-sale: | ||
Amortized Cost | 774 | 784 |
Gross Unrealized Gain | 16 | 5 |
Gross Unrealized Loss | 0 | 0 |
Securities available-for-sale, at fair value | $ 790 | $ 789 |
Investment Securities - Summa_2
Investment Securities - Summary of Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale: | ||
Amortized Cost, Within one year | $ 0 | |
Amortized Cost, One to five years | 0 | |
Amortized Cost, Five to ten years | 774 | |
Amortized Cost, Greater than ten years | 0 | |
Amortized Cost, Mortgage-backed securities and collateralized mortgage obligations | 141,492 | |
Amortized Cost | 142,266 | $ 149,528 |
Fair Value, Within one year | 0 | |
Fair Value, One to five years | 0 | |
Fair Value, Five to ten years | 790 | |
Fair Value, Greater than ten years | 0 | |
Fair Value, Mortgage-backed securities and collateralized mortgage obligations | 141,749 | |
Fair Value | 142,539 | 146,991 |
Securities held-to-maturity: | ||
Amortized Cost, Within one year | 131 | |
Amortized Cost, One to five years | 1,424 | |
Amortized Cost, Five to ten years | 1,208 | |
Amortized Cost, Greater than ten years | 2,321 | |
Amortized Cost, Mortgage-backed securities and collateralized mortgage obligations | 17,601 | |
Amortized Cost | 22,685 | 21,760 |
Fair Value, Within one year | 131 | |
Fair Value, One to five years | 1,464 | |
Fair Value, Five to ten years | 1,244 | |
Fair Value, Greater than ten years | 2,525 | |
Fair Value, Mortgage-backed securities and collateralized mortgage obligations | 17,449 | |
Fair Value | $ 22,813 | $ 21,152 |
Investment Securities - Summa_3
Investment Securities - Summary of Gains (Losses) on Available-for-sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains on sales and calls of securities available-for-sale | $ 0 | $ 0 | $ 0 | $ 0 |
Gross realized losses on sales and calls of securities available-for-sale | 0 | 0 | 0 | 0 |
Net realized gains (losses) on sales and calls of securities available-for-sale | 0 | 0 | 0 | 0 |
Proceeds from sales and calls of securities available-for-sale | 0 | 0 | 0 | 1,060 |
Tax expense on sales and calls of securities available-for-sale | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities - Summa_4
Investment Securities - Summary of Individual Securities in Continuous Unrealized Loss Position (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)security | |
Securities available-for-sale: | |||
Less Than 12 Months, Fair Value | $ 10,175,000 | $ 11,744,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ (87,000) | $ (42,000) | |
Less Than 12 Months, Number of Securities | security | 6 | 9 | |
12 months or Longer, Fair Value | $ 70,299,000 | $ 96,611,000 | |
12 months or Longer, Gross Unrealized Losses | $ (707,000) | $ (2,732,000) | |
12 months or Longer, Number of Securities | security | 76 | 100 | |
Total, Fair Value | $ 80,474,000 | $ 108,355,000 | |
Total, Gross Unrealized Losses | $ (794,000) | $ (2,774,000) | |
Total, Number of Securities | security | 82 | 109 | |
Securities held-to-maturity: | |||
Less Than 12 Months, Fair Value | $ 0 | $ 4,622,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ 0 | $ (61,000) | |
Less Than 12 Months, Number of Securities | security | 0 | 9 | |
12 Months or Longer, Fair Value | $ 11,934,000 | $ 14,532,000 | |
12 Months or Longer, Gross Unrealized Losses | $ (173,000) | $ (584,000) | |
12 Months or Longer, Number of Securities | security | 13 | 18 | |
Total, Fair Value | $ 11,934,000 | $ 19,154,000 | |
Total, Gross Unrealized Losses | $ (173,000) | $ (645,000) | |
Total, Number of Securities | security | 13 | 27 | |
OTTI Assessment | $ 0 | $ 0 | |
Residential mortgage-backed securities | |||
Securities available-for-sale: | |||
Less Than 12 Months, Fair Value | 0 | $ 1,868,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ 0 | $ (6,000) | |
Less Than 12 Months, Number of Securities | security | 0 | 2 | |
12 months or Longer, Fair Value | $ 30,778,000 | $ 41,845,000 | |
12 months or Longer, Gross Unrealized Losses | $ (325,000) | $ (1,225,000) | |
12 months or Longer, Number of Securities | security | 37 | 48 | |
Total, Fair Value | $ 30,778,000 | $ 43,713,000 | |
Total, Gross Unrealized Losses | $ (325,000) | $ (1,231,000) | |
Total, Number of Securities | security | 37 | 50 | |
Residential collateralized mortgage obligations | |||
Securities available-for-sale: | |||
Less Than 12 Months, Fair Value | $ 10,175,000 | $ 7,067,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ (87,000) | $ (29,000) | |
Less Than 12 Months, Number of Securities | security | 6 | 5 | |
12 months or Longer, Fair Value | $ 34,408,000 | $ 34,943,000 | |
12 months or Longer, Gross Unrealized Losses | $ (330,000) | $ (1,002,000) | |
12 months or Longer, Number of Securities | security | 33 | 34 | |
Total, Fair Value | $ 44,583,000 | $ 42,010,000 | |
Total, Gross Unrealized Losses | $ (417,000) | $ (1,031,000) | |
Total, Number of Securities | security | 39 | 39 | |
Securities held-to-maturity: | |||
Less Than 12 Months, Fair Value | $ 0 | $ 2,022,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ 0 | $ (23,000) | |
Less Than 12 Months, Number of Securities | security | 0 | 1 | |
12 Months or Longer, Fair Value | $ 11,803,000 | $ 14,035,000 | |
12 Months or Longer, Gross Unrealized Losses | $ (172,000) | $ (579,000) | |
12 Months or Longer, Number of Securities | security | 12 | 15 | |
Total, Fair Value | $ 11,803,000 | $ 16,057,000 | |
Total, Gross Unrealized Losses | $ (172,000) | $ (602,000) | |
Total, Number of Securities | security | 12 | 16 | |
SBA loan pool securities | |||
Securities available-for-sale: | |||
Less Than 12 Months, Fair Value | $ 0 | $ 2,809,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ 0 | $ (7,000) | |
Less Than 12 Months, Number of Securities | security | 0 | 2 | |
12 months or Longer, Fair Value | $ 5,113,000 | $ 19,823,000 | |
12 months or Longer, Gross Unrealized Losses | $ (52,000) | $ (505,000) | |
12 months or Longer, Number of Securities | security | 6 | 18 | |
Total, Fair Value | $ 5,113,000 | $ 22,632,000 | |
Total, Gross Unrealized Losses | $ (52,000) | $ (512,000) | |
Total, Number of Securities | security | 6 | 20 | |
Securities held-to-maturity: | |||
Less Than 12 Months, Fair Value | $ 0 | $ 2,600,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ 0 | $ (38,000) | |
Less Than 12 Months, Number of Securities | security | 0 | 8 | |
12 Months or Longer, Fair Value | $ 131,000 | $ 497,000 | |
12 Months or Longer, Gross Unrealized Losses | $ (1,000) | $ (5,000) | |
12 Months or Longer, Number of Securities | security | 1 | 3 | |
Total, Fair Value | $ 131,000 | $ 3,097,000 | |
Total, Gross Unrealized Losses | $ (1,000) | $ (43,000) | |
Total, Number of Securities | security | 1 | 11 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loans Held-For-Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | $ 1,395,557 | $ 1,338,682 |
Allowance for loan losses | (13,328) | (13,167) |
Net loans held-for-investment | 1,382,229 | 1,325,515 |
Related party loans outstanding | 3,800 | 2,400 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 1,139,819 | 1,091,487 |
Real Estate | Commercial property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 748,526 | 709,409 |
Real Estate | Residential property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 240,630 | 233,816 |
Real Estate | SBA property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 128,208 | 120,939 |
Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 22,455 | 27,323 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 231,944 | 221,274 |
Commercial and Industrial | Commercial term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 105,651 | 102,133 |
Commercial and Industrial | Commercial lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 85,197 | 80,473 |
Commercial and Industrial | SBA commercial term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 24,762 | 27,147 |
Commercial and Industrial | Trade finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | 16,334 | 11,521 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment | $ 23,794 | $ 25,921 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Allowance for loan losses, beginning balance | $ 13,137 | $ 12,371 | $ 13,167 | $ 12,224 | |
Charge-offs | (252) | (296) | (298) | (435) | |
Recoveries on loans previously charged off | 49 | 121 | 150 | 312 | |
Provision for loan losses | 394 | 425 | 309 | 520 | |
Allowance for loan losses, ending balance | 13,328 | 12,621 | 13,328 | 12,621 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | $ 94 | ||
Collectively evaluated for impairment | 13,328 | 13,328 | 13,073 | ||
Total | 13,328 | 13,328 | 13,167 | ||
Loans receivable: | |||||
Individually evaluated for impairment | 1,779 | 1,779 | 1,476 | ||
Collectively evaluated for impairment | 1,393,778 | 1,393,778 | 1,337,206 | ||
Total | 1,395,557 | 1,395,557 | 1,338,682 | ||
Real Estate | |||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 9,324 | 9,076 | 9,104 | 8,507 | |
Charge-offs | (17) | (79) | (19) | (204) | |
Recoveries on loans previously charged off | 0 | 50 | 4 | 52 | |
Provision for loan losses | 404 | 276 | 622 | 968 | |
Allowance for loan losses, ending balance | 9,711 | 9,323 | 9,711 | 9,323 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | 1 | ||
Collectively evaluated for impairment | 9,711 | 9,711 | 9,103 | ||
Total | 9,711 | 9,711 | 9,104 | ||
Loans receivable: | |||||
Individually evaluated for impairment | 1,676 | 1,676 | 1,156 | ||
Collectively evaluated for impairment | 1,138,143 | 1,138,143 | 1,090,331 | ||
Total | 1,139,819 | 1,139,819 | 1,091,487 | ||
Commercial and Industrial | |||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 3,608 | 3,100 | 3,877 | 3,548 | |
Charge-offs | (168) | (90) | (168) | (90) | |
Recoveries on loans previously charged off | 33 | 54 | 74 | 234 | |
Provision for loan losses | (47) | 44 | (357) | (584) | |
Allowance for loan losses, ending balance | 3,426 | 3,108 | 3,426 | 3,108 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | 93 | ||
Collectively evaluated for impairment | 3,426 | 3,426 | 3,784 | ||
Total | 3,426 | 3,426 | 3,877 | ||
Loans receivable: | |||||
Individually evaluated for impairment | 103 | 103 | 320 | ||
Collectively evaluated for impairment | 231,841 | 231,841 | 220,954 | ||
Total | 231,944 | 231,944 | 221,274 | ||
Consumer | |||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 205 | 195 | 186 | 169 | |
Charge-offs | (67) | (127) | (111) | (141) | |
Recoveries on loans previously charged off | 16 | 17 | 72 | 26 | |
Provision for loan losses | 37 | 105 | 44 | 136 | |
Allowance for loan losses, ending balance | 191 | $ 190 | 191 | $ 190 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 191 | 191 | 186 | ||
Total | 191 | 191 | 186 | ||
Loans receivable: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 23,794 | 23,794 | 25,921 | ||
Total | $ 23,794 | $ 23,794 | $ 25,921 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 1,395,557 | $ 1,338,682 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,384,719 | 1,328,146 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 3,354 | 3,671 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 7,484 | 6,865 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,139,819 | 1,091,487 |
Real Estate | Commercial property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 748,526 | 709,409 |
Real Estate | Commercial property | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 747,877 | 708,742 |
Real Estate | Commercial property | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Commercial property | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 649 | 667 |
Real Estate | Commercial property | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Residential property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 240,630 | 233,816 |
Real Estate | Residential property | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 240,630 | 233,514 |
Real Estate | Residential property | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Residential property | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 302 |
Real Estate | Residential property | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | SBA property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 128,208 | 120,939 |
Real Estate | SBA property | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 121,684 | 115,543 |
Real Estate | SBA property | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 73 | 74 |
Real Estate | SBA property | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 6,451 | 5,322 |
Real Estate | SBA property | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 22,455 | 27,323 |
Real Estate | Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 19,228 | 24,325 |
Real Estate | Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 3,227 | 2,998 |
Real Estate | Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Construction | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 231,944 | 221,274 |
Commercial and Industrial | Commercial term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 105,651 | 102,133 |
Commercial and Industrial | Commercial term | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 105,638 | 102,106 |
Commercial and Industrial | Commercial term | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Commercial term | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 13 | 27 |
Commercial and Industrial | Commercial term | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Commercial lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 85,197 | 80,473 |
Commercial and Industrial | Commercial lines of credit | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 85,197 | 79,874 |
Commercial and Industrial | Commercial lines of credit | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 599 |
Commercial and Industrial | Commercial lines of credit | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Commercial lines of credit | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | SBA commercial term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 24,762 | 27,147 |
Commercial and Industrial | SBA commercial term | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 24,378 | 26,616 |
Commercial and Industrial | SBA commercial term | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 54 | 0 |
Commercial and Industrial | SBA commercial term | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 330 | 531 |
Commercial and Industrial | SBA commercial term | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Trade finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 16,334 | 11,521 |
Commercial and Industrial | Trade finance | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 16,334 | 11,521 |
Commercial and Industrial | Trade finance | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Trade finance | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Trade finance | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 23,794 | 25,921 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 23,753 | 25,905 |
Consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 41 | 16 |
Consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Aging of Past Due Accruing Loans and Nonaccrual Loans by Portfolio Segment (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $ 1,429,000 | $ 1,061,000 |
Total Past Due and Nonaccrual | 2,238,000 | 1,438,000 |
Loans guaranteed by US government agency | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 804,000 | 368,000 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 5,000 | 9,000 |
90 or More Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Real Estate | Residential property | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 302,000 | |
Total Past Due and Nonaccrual | 397,000 | |
Real Estate | Residential property | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 95,000 | |
Real Estate | Residential property | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 0 | |
Real Estate | Residential property | 90 or More Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 0 | |
Real Estate | SBA property | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,372,000 | 540,000 |
Total Past Due and Nonaccrual | 1,747,000 | 723,000 |
Real Estate | SBA property | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 375,000 | 183,000 |
Real Estate | SBA property | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Real Estate | SBA property | 90 or More Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Commercial and Industrial | SBA commercial term | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 16,000 | 203,000 |
Total Past Due and Nonaccrual | 359,000 | 203,000 |
Commercial and Industrial | SBA commercial term | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 343,000 | 0 |
Commercial and Industrial | SBA commercial term | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Commercial and Industrial | SBA commercial term | 90 or More Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 41,000 | 16,000 |
Total Past Due and Nonaccrual | 132,000 | 115,000 |
Consumer | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 86,000 | 90,000 |
Consumer | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | 5,000 | 9,000 |
Consumer | 90 or More Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Still Accruing | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | $ 1,779 | $ 1,779 | $ 1,245 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 1,850 | 1,850 | 1,325 | ||
Impaired financing receivable, with an allowance recorded, recorded investment | 0 | 0 | 231 | ||
Impaired financing receivable, with an allowance recorded, unpaid principal balance | 0 | 0 | 239 | ||
Impaired financing receivable, with an allowance recorded, related allowance | 0 | 0 | 94 | ||
Average Recorded Investment | 1,777 | $ 2,901 | 1,790 | $ 2,888 | |
Interest Income | 8 | 8 | 16 | 21 | |
Interest Foregone on Impaired Loans [Abstract] | |||||
Interest income that would have been recognized had impaired loans performed in accordance with their original terms | 32 | 47 | 64 | 128 | |
Less: interest income recognized on impaired loans on a cash basis | (8) | (8) | (16) | (54) | |
Interest income foregone on impaired loans | 24 | 39 | 48 | 74 | |
Real Estate | Commercial property | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 0 | 275 | 0 | 295 | |
Interest Income | 0 | 0 | 0 | 0 | |
Real Estate | Residential property | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | 302 | ||||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 303 | ||||
Impaired financing receivable, with an allowance recorded, recorded investment | 0 | ||||
Impaired financing receivable, with an allowance recorded, unpaid principal balance | 0 | ||||
Impaired financing receivable, with an allowance recorded, related allowance | 0 | ||||
Average Recorded Investment | 0 | 365 | 76 | 547 | |
Interest Income | 0 | 0 | 0 | 0 | |
Real Estate | SBA property | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | 1,676 | 1,676 | 802 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 1,733 | 1,733 | 854 | ||
Impaired financing receivable, with an allowance recorded, recorded investment | 0 | 0 | 52 | ||
Impaired financing receivable, with an allowance recorded, unpaid principal balance | 0 | 0 | 50 | ||
Impaired financing receivable, with an allowance recorded, related allowance | 0 | 0 | 1 | ||
Average Recorded Investment | 1,666 | 1,538 | 1,507 | 1,362 | |
Interest Income | 6 | 5 | 12 | 10 | |
Commercial and Industrial | Commercial term | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | 47 | 47 | 68 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 47 | 47 | 69 | ||
Impaired financing receivable, with an allowance recorded, recorded investment | 0 | 0 | 0 | ||
Impaired financing receivable, with an allowance recorded, unpaid principal balance | 0 | 0 | 0 | ||
Impaired financing receivable, with an allowance recorded, related allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 52 | 136 | 57 | 162 | |
Interest Income | 1 | 2 | 2 | 5 | |
Commercial and Industrial | Commercial lines of credit | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 0 | 20 | 0 | 13 | |
Interest Income | 0 | 0 | 0 | 0 | |
Commercial and Industrial | SBA commercial term | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | 56 | 56 | 73 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 70 | 70 | 99 | ||
Impaired financing receivable, with an allowance recorded, recorded investment | 0 | 0 | 179 | ||
Impaired financing receivable, with an allowance recorded, unpaid principal balance | 0 | 0 | 189 | ||
Impaired financing receivable, with an allowance recorded, related allowance | 0 | 0 | $ 93 | ||
Average Recorded Investment | 59 | 567 | 150 | 509 | |
Interest Income | $ 1 | $ 1 | $ 2 | $ 6 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | $ 391,000 | $ 391,000 | $ 432,000 | ||
Nonaccrual | 131,000 | 131,000 | 131,000 | ||
Total | $ 522,000 | 522,000 | 563,000 | ||
Loans Modified as TDRs During the Period [Abstract] | |||||
Number of Loans | loan | 1 | 0 | |||
Pre-Modification Outstanding Recorded Investment | $ 131,000 | $ 0 | |||
Post-Modification Outstanding Recorded Investment | 131,000 | $ 0 | |||
Number of commitments to lend to customers with outstanding loans that were classified as TDRs | 0 | 0 | 0 | ||
Allowance for loan losses | $ 0 | $ 0 | 86,000 | ||
Number of Loans | loan | 0 | 2 | 0 | 2 | |
Recorded Investment at Date of Default | $ 0 | $ 233,000 | $ 0 | $ 233,000 | |
Real Estate | SBA property | |||||
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | 304,000 | 304,000 | 315,000 | ||
Nonaccrual | 131,000 | 131,000 | 0 | ||
Total | $ 435,000 | $ 435,000 | 315,000 | ||
Loans Modified as TDRs During the Period [Abstract] | |||||
Number of Loans | loan | 1 | 0 | 1 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 131,000 | $ 0 | $ 131,000 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 131,000 | $ 0 | 131,000 | $ 0 | |
Commercial and Industrial | Commercial term | |||||
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | 47,000 | 47,000 | 68,000 | ||
Nonaccrual | 0 | 0 | 0 | ||
Total | 47,000 | 47,000 | 68,000 | ||
Commercial and Industrial | SBA commercial term | |||||
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | 40,000 | 40,000 | 49,000 | ||
Nonaccrual | 0 | 0 | 131,000 | ||
Total | $ 40,000 | $ 40,000 | $ 180,000 | ||
Loans Modified as TDRs During the Period [Abstract] | |||||
Number of Loans | loan | 0 | 2 | 0 | 2 | |
Recorded Investment at Date of Default | $ 0 | $ 233,000 | $ 0 | $ 233,000 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Loans Held-For-Sale (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 440,000 | $ 440,000 | $ 5,781,000 | ||
Real Estate | Residential property | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transfer of loans to held-for-sale | 0 | $ 6,000,000 | 303,000 | $ 6,000,000 | |
Sales or purchases of loans held-for-investment | 0 | $ 0 | 0 | 0 | |
Loans held-for-sale | 355,000 | 355,000 | 0 | ||
Real Estate | SBA property | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | 0 | 0 | 5,481,000 | ||
Commercial and Industrial | Commercial property | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transfer of loans to held-for-sale | $ 1,100,000 | ||||
Commercial and Industrial | SBA commercial term | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 85,000 | $ 85,000 | $ 300,000 |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |||||
Total servicing assets | $ 7,230 | $ 7,230 | $ 7,666 | ||
Loans sold with servicing rights retained | 29,200 | $ 18,500 | 50,400 | $ 48,400 | |
Net gain on sale | 1,900 | 1,000 | 3,000 | 3,100 | |
Loan servicing income | $ 492 | $ 585 | $ 1,100 | $ 1,200 |
Servicing Assets - Summary of K
Servicing Assets - Summary of Key Assumptions in Fair Value Calculations (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Servicing Assets at Fair Value [Line Items] | ||||||
Carrying amount | $ 7,230 | $ 7,666 | ||||
Residential property | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Carrying amount | 204 | 244 | $ 221 | $ 285 | $ 290 | $ 308 |
Fair value | $ 210 | $ 298 | ||||
Discount rate | 11.25% | 11.25% | ||||
Prepayment speed | 31.00% | 25.00% | ||||
Weighted average remaining life | 24 years 7 months 26 days | 25 years 1 month 29 days | ||||
Underlying loans being serviced | $ 38,487 | $ 45,728 | ||||
SBA Property | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Carrying amount | 6,094 | 6,349 | 6,277 | 6,940 | 7,375 | 7,369 |
Fair value | $ 6,861 | $ 6,937 | ||||
Discount rate | 13.25% | 13.25% | ||||
Prepayment speed | 15.18% | 14.12% | ||||
Weighted average remaining life | 21 years 1 month 4 days | 21 years 1 month 9 days | ||||
Underlying loans being serviced | $ 379,345 | $ 367,856 | ||||
SBA Commercial Term | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Carrying amount | 932 | 1,073 | $ 987 | $ 1,165 | $ 1,225 | $ 1,296 |
Fair value | $ 1,058 | $ 1,206 | ||||
Discount rate | 12.75% | 12.75% | ||||
Prepayment speed | 15.69% | 13.55% | ||||
Weighted average remaining life | 7 years 2 months 21 days | 7 years 4 months 19 days | ||||
Underlying loans being serviced | $ 86,262 | $ 93,073 |
Servicing Assets - Summary of C
Servicing Assets - Summary of Changes in Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | $ 7,666 | |||
Amortization | (1,213) | $ (1,244) | ||
Balance at end of period | $ 7,230 | 7,230 | ||
Residential property | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | 221 | $ 290 | 244 | 308 |
Additions | 0 | 22 | 0 | 22 |
Amortization | (17) | (27) | (40) | (45) |
Impairment | 0 | 0 | 0 | 0 |
Balance at end of period | 204 | 285 | 204 | 285 |
SBA Property | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | 6,277 | 7,375 | 6,349 | 7,369 |
Additions | 386 | 132 | 670 | 568 |
Amortization | (569) | (504) | (925) | (934) |
Impairment | 0 | (63) | 0 | (63) |
Balance at end of period | 6,094 | 6,940 | 6,094 | 6,940 |
SBA Commercial Term | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | 987 | 1,225 | 1,073 | 1,296 |
Additions | 56 | 60 | 107 | 134 |
Amortization | (111) | (120) | (248) | (265) |
Impairment | 0 | 0 | 0 | 0 |
Balance at end of period | $ 932 | $ 1,165 | $ 932 | $ 1,165 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use lease assets | $ 10,105 | $ 0 | |
Operating lease liabilities | $ 11,131 | 0 | |
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Renewal term | 1 year | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Renewal term | 5 years | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use lease assets | $ 9,600 | ||
Operating lease liabilities | 10,600 | ||
Cumulative effect adjustment to retained earnings | 53 | ||
ASU 2016-02 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings | $ 53 | $ 53 |
Operating Leases - Cost and Sup
Operating Leases - Cost and Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Leases [Abstract] | ||||
Operating lease cost | $ 649 | $ 1,273 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | 0 | 0 | ||
Right of use assets obtained in exchange for lease obligations | 1,523 | 1,588 | $ 0 | |
Operating leases: | ||||
Operating lease assets | 10,105 | 10,105 | $ 0 | |
Operating lease liabilities | $ 11,131 | $ 11,131 | $ 0 | |
Weighted-average remaining lease term | 5 years 4 months 10 days | 5 years 4 months 10 days | ||
Weighted-average discount rate | 2.81% | 2.81% |
Operating Leases - Maturities o
Operating Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Maturities: | ||
2019 | $ 1,347 | |
2020 | 2,675 | |
2021 | 2,283 | |
2022 | 2,171 | |
2023 | 1,828 | |
After 2023 | 1,899 | |
Total lease payment | 12,203 | |
Imputed Interest | (1,072) | |
Present value of operating lease liabilities | $ 11,131 | $ 0 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances and Other Borrowings (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Borrowings from the FHLB | $ 35,000,000 | $ 35,000,000 | $ 30,000,000 |
FHLB, Overnight borrowings | $ 15,000,000 | $ 15,000,000 | |
FHLB, Overnight borrowings, interest rate | 2.52% | 2.52% | |
FHLB, Fixed-rate borrowings | $ 20,000,000 | $ 20,000,000 | |
Weighted average interest rate | 1.92% | 1.92% | 1.81% |
Loans pledged to secure borrowings | $ 637,700,000 | $ 637,700,000 | $ 523,400,000 |
Additional borrowing capacity | 394,400,000 | 394,400,000 | 386,000,000 |
FHLB Advances | |||
Debt Instrument [Line Items] | |||
Borrowing capacity of terminated facility | 25,000,000 | ||
FHLB of San Francisco | |||
Debt Instrument [Line Items] | |||
Investment in capital stock of the FHLB | 8,200,000 | 8,200,000 | $ 7,300,000 |
FHLB Advances | |||
Debt Instrument [Line Items] | |||
Unused borrowing capacity | 41,800,000 | 41,800,000 | |
Loans pledged as collateral | 48,300,000 | 48,300,000 | |
Borrowings outstanding | 0 | 0 | |
Overnight federal funds lines, maximum borrowing capacity | 35,000,000 | 35,000,000 | |
Outstanding borrowings under terminated facility | $ 0 | $ 0 | |
FHLB Advances | Minimum | |||
Debt Instrument [Line Items] | |||
Maturity term | 3 years | 2 years | |
FHLB Advances | Maximum | |||
Debt Instrument [Line Items] | |||
Maturity term | 5 years | 5 years |
Shareholders_ Equity - Narrativ
Shareholders’ Equity - Narrative (Details) - USD ($) | Sep. 05, 2018 | Aug. 14, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 28, 2019 |
Class of Stock [Line Items] | |||||||
Stock issued under stock offering, net of expenses | $ 45,000,000 | ||||||
Stock repurchase program, authorized repurchase amount | $ 6,500,000 | ||||||
Repurchase of common stock (in shares) | 57,551 | ||||||
Repurchase of common stock | $ 974,000 | $ 974,000 | |||||
Cash dividends declared (in dollars per share) | $ 0.06 | $ 0.03 | $ 0.11 | $ 0.06 | |||
Initial Public Offering | |||||||
Class of Stock [Line Items] | |||||||
Stock issued under stock offering, net of expenses (in shares) | 2,385,000 | ||||||
Offering price (in dollars per share) | $ 20 | ||||||
Net proceeds from issuance of common stock | $ 47,700,000 | ||||||
Underwriter Option | |||||||
Class of Stock [Line Items] | |||||||
Stock issued under stock offering, net of expenses (in shares) | 123,234 | ||||||
Net proceeds from issuance of common stock | $ 2,500,000 | ||||||
Underwriter option term | 30 days | ||||||
Underwriter option, shares issuable (in shares) | 357,750 |
Shareholders_ Equity - Schedule
Shareholders’ Equity - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Unrealized gain (loss) on securities available-for-sale: | ||||
Beginning balance | $ 217,211 | $ 147,233 | $ 210,296 | $ 142,184 |
Other comprehensive income (loss) | ||||
Total other comprehensive income (loss), net of tax | 1,158 | (364) | 1,985 | (1,389) |
Balance at end of period | 223,400 | 151,431 | 223,400 | 151,431 |
Unrealized gains or losses on securities available-for-sale | ||||
Unrealized gain (loss) on securities available-for-sale: | ||||
Beginning balance | (820) | (2,248) | (1,647) | (1,223) |
Other comprehensive income (loss) | ||||
Unrealized gain (loss) arising during the period | 1,638 | (515) | 2,810 | (1,960) |
Tax effect of current period changes | (480) | 151 | (825) | 571 |
Total other comprehensive income (loss), net of tax | 1,158 | (364) | 1,985 | (1,389) |
Balance at end of period | $ 338 | $ (2,612) | $ 338 | $ (2,612) |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 25, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 162 | $ 157 | $ 323 | $ 339 | |
Realized income tax benefits related to share-based compensation | 11 | $ 17 | 22 | $ 38 | |
Unrecognized share-based compensation expense on outstanding stock options | $ 1,200 | $ 1,200 | |||
Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized options to purchase (in shares) | 1,114,446 | ||||
Shares available for future grants (in shares) | 586,576 | 586,576 | |||
Weighted average recognition period for recognition of share-based compensation expense | 2 years 2 months 1 day | ||||
Award contractual term | 10 years | ||||
Option | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Option | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years |
Share-Based Compensation - Opti
Share-Based Compensation - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options, Outstanding at beginning of period (in shares) | 874,894 | 898,291 | 898,291 | |
Options, Granted (in shares) | 0 | 10,000 | ||
Options, Exercised (in shares) | (27,055) | (60,452) | ||
Options, Outstanding at end of year (in shares) | 847,839 | 874,894 | 847,839 | 898,291 |
Options, Exercisable (in shares) | 503,066 | 503,066 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Weighted-Average Exercise Price Per Share, Outstanding at beginning of period (in dollars per share) | $ 10.03 | $ 9.81 | $ 9.81 | |
Weighted-Average Exercise Price Per Share, Granted (in dollars per share) | 17.47 | |||
Weighted-Average Exercise Price Per Share, Exercised (in dollars per share) | 7.53 | 6.95 | ||
Weighted-Average Exercise Price Per Share, Outstanding at ending of period (in dollars per share) | 10.11 | $ 10.03 | 10.11 | $ 9.81 |
Weighted-Average Exercise Price Per Share, Exercisable (in dollars per share) | $ 8.65 | $ 8.65 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted-Average Contractual Term, Outstanding | 6 years 2 months 9 days | 6 years 4 months 24 days | 6 years 2 months 9 days | 6 years 6 months 17 days |
Weighted-Average Contractual Term, Granted | 10 years | |||
Weighted-Average Contractual Term, Exercised | 4 years 9 months 22 days | 4 years 7 months 28 days | ||
Weighted-Average Contractual Term, Exercisable | 5 years 5 months 23 days | 5 years 5 months 23 days | ||
Aggregate Intrinsic Value, Balance | $ 5,877 | $ 6,493 | $ 5,877 | $ 5,243 |
Aggregate Intrinsic Value, Exercisable | $ 4,219 | $ 4,219 |
Share-Based Compensation - Nonv
Share-Based Compensation - Nonvested Options (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested Options, Outstanding at beginning of period (in shares) | 344,773 | 347,274 |
Unvested Options, Granted (in shares) | 0 | 10,000 |
Unvested Options, Vested (in shares) | 0 | (12,501) |
Unvested Options, Outstanding at end of period (in shares) | 344,773 | 344,773 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Exercise Price Per Share, Outstanding (in dollars per share) | $ 12.23 | $ 12.17 |
Weighted-Average Exercise Price Per Share, Granted (in dollars per share) | 0 | 17.47 |
Weighted-Average Exercise Price Per Share, Vested (in dollars per share) | 0 | 14.75 |
Weighted-Average Exercise Price Per Share, Outstanding (in dollars per share) | $ 12.23 | $ 12.23 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 2,767,000 | $ 2,028,000 | $ 5,561,000 | $ 4,694,000 | |
Effective tax rate | 29.50% | 29.90% | 29.70% | 29.90% | |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | ||
Accrued interest or penalties | $ 0 | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share, Basic [Abstract] | ||||
Net income | $ 6,601 | $ 4,762 | $ 13,165 | $ 11,026 |
Weighted-average common shares outstanding (in shares) | 16,017,089 | 13,432,775 | 16,008,325 | 13,425,557 |
Basic earnings per share (in dollars per share) | $ 0.41 | $ 0.35 | $ 0.82 | $ 0.82 |
Diluted earnings per share: | ||||
Net income | $ 6,601 | $ 4,762 | $ 13,165 | $ 11,026 |
Weighted-average common shares outstanding (in shares) | 16,017,089 | 13,432,775 | 16,008,325 | 13,425,557 |
Diluted effect of stock options (in shares) | 312,950 | 195,902 | 294,949 | 182,277 |
Diluted weighted-average common shares outstanding (in shares) | 16,330,039 | 13,628,677 | 16,303,274 | 13,607,834 |
Diluted earnings per share (in shares) | $ 0.40 | $ 0.35 | $ 0.81 | $ 0.81 |
Stock options excluded in computing diluted earnings per share | 15,000 | 0 | 15,000 | 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Outstanding financial commitments whose contractual amount represents credit risk | $ 157,348 | $ 130,918 |
SEC Schedule, 12-09, Reserve, Off-balance Sheet Activity | ||
Other Commitments [Line Items] | ||
Reserve for off-balance sheet items | 141 | 139 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Outstanding financial commitments whose contractual amount represents credit risk | 154,453 | 127,443 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Outstanding financial commitments whose contractual amount represents credit risk | 2,363 | 2,998 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Outstanding financial commitments whose contractual amount represents credit risk | $ 532 | $ 477 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
PCB Bancorp | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 9.18% | 9.31% |
Actual | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 222,131 | $ 210,871 |
Common tier 1 capital (to risk-weighted assets), ratio | 16.20% | 16.28% |
Total capital (to risk-weighted assets), amount | $ 235,599 | $ 224,178 |
Total capital (to risk-weighted assets), ratio | 17.18% | 17.31% |
Tier 1 capital (to risk-weighted assets), amount | $ 222,131 | $ 210,871 |
Tier 1 capital (to risk-weighted assets), ratio | 16.20% | 16.28% |
Tier 1 capital (to average assets), amount | $ 222,131 | $ 210,871 |
Tier 1 capital (to average assets), ratio | 12.74% | 12.60% |
Minimum Capital Requirement | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 61,710 | $ 58,273 |
Common tier 1 capital (to risk-weighted assets), ratio | 4.50% | 4.50% |
Total capital (to risk-weighted assets), amount | $ 109,707 | $ 103,596 |
Total capital (to risk-weighted assets), ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), amount | $ 82,280 | $ 77,697 |
Tier 1 capital (to risk-weighted assets), ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), amount | $ 69,725 | $ 66,930 |
Tier 1 capital (to average assets), ratio | 4.00% | 4.00% |
Pacific City Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 9.05% | 9.21% |
Actual | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 220,342 | $ 209,587 |
Common tier 1 capital (to risk-weighted assets), ratio | 16.07% | 16.19% |
Total capital (to risk-weighted assets), amount | $ 233,810 | $ 222,894 |
Total capital (to risk-weighted assets), ratio | 17.05% | 17.21% |
Tier 1 capital (to risk-weighted assets), amount | $ 220,342 | $ 209,587 |
Tier 1 capital (to risk-weighted assets), ratio | 16.07% | 16.19% |
Tier 1 capital (to average assets), amount | $ 220,342 | $ 209,587 |
Tier 1 capital (to average assets), ratio | 12.64% | 12.53% |
Minimum Capital Requirement | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 61,709 | $ 58,272 |
Common tier 1 capital (to risk-weighted assets), ratio | 4.50% | 4.50% |
Total capital (to risk-weighted assets), amount | $ 109,704 | $ 103,594 |
Total capital (to risk-weighted assets), ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), amount | $ 82,278 | $ 77,696 |
Tier 1 capital (to risk-weighted assets), ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), amount | $ 69,723 | $ 66,929 |
Tier 1 capital (to average assets), ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Provisions | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 89,135 | $ 84,171 |
Common tier 1 capital (to risk-weighted assets), ratio | 6.50% | 6.50% |
Total capital (to risk-weighted assets), amount | $ 137,130 | $ 129,493 |
Total capital (to risk-weighted assets), ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), amount | $ 109,704 | $ 103,594 |
Tier 1 capital (to risk-weighted assets), ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), amount | $ 87,154 | $ 83,661 |
Tier 1 capital (to average assets), ratio | 5.00% | 5.00% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | $ 620 | $ 597 | $ 1,208 | $ 1,162 |
Total service charges and fees on deposits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | 368 | 376 | 732 | 725 |
Monthly service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | 29 | 27 | 57 | 52 |
Account analysis fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | 242 | 241 | 469 | 476 |
Non-sufficient funds charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | 73 | 86 | 159 | 153 |
Other deposit related fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | 24 | 22 | 47 | 44 |
Debit card fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | 68 | 50 | 133 | 95 |
Gain on sale of other real estate owned | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | 0 | 0 | 0 | 3 |
Wire transfer fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | 126 | 122 | 235 | 226 |
Other service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income in-scope of Topic 606 | $ 58 | $ 49 | $ 108 | $ 113 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Jul. 25, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event [Line Items] | |||||
Cash dividends declared on common stock (in dollars per share) | $ 0.06 | $ 0.03 | $ 0.11 | $ 0.06 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared on common stock (in dollars per share) | $ 0.06 |