Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38621 | |
Entity Registrant Name | PCB BANCORP | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 20-8856755 | |
Entity Address, Address Line One | 3701 Wilshire Boulevard | |
Entity Address, Address Line Two | Suite 900 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90010 | |
City Area Code | 213 | |
Local Phone Number | 210-2000 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | PCB | |
Security Exchange Name | NASDAQ | |
Entity current reporting status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity small business | true | |
Entity emerging growth company | true | |
Transition period | true | |
Entity shell company | false | |
Entity Common Stock, Shares Outstanding | 15,378,247 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001423869 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 18,255 | $ 17,808 |
Interest-bearing deposits in other financial institutions | 289,348 | 128,420 |
Total cash and cash equivalents | 307,603 | 146,228 |
Securities available-for-sale, at fair value | 128,049 | 97,566 |
Securities held-to-maturity, at amortized cost (fair value of $20,480 at December 31, 2019) | 0 | 20,154 |
Total investment securities | 128,049 | 117,720 |
Loans held-for-sale | 4,102 | 1,975 |
Loans held-for-investment, net of deferred loan costs (fees) | 1,553,589 | 1,450,831 |
Allowance for loan losses | (20,248) | (14,380) |
Net loans held-for-investment | 1,533,341 | 1,436,451 |
Premises and equipment, net | 4,542 | 3,760 |
Federal Home Loan Bank and other restricted stock, at cost | 8,447 | 8,345 |
Other real estate owned, net | 376 | 0 |
Deferred tax assets, net | 6,347 | 5,288 |
Servicing assets | 6,399 | 6,798 |
Operating lease assets | 7,843 | 8,991 |
Accrued interest receivable | 9,498 | 5,136 |
Other assets | 4,230 | 5,636 |
Total assets | 2,020,777 | 1,746,328 |
Deposits: | ||
Noninterest-bearing demand | 551,415 | 360,039 |
Savings, NOW and money market accounts | 368,885 | 362,179 |
Time deposits of $250,000 or less | 466,450 | 467,363 |
Time deposits of more than $250,000 | 260,180 | 289,726 |
Total deposits | 1,646,930 | 1,479,307 |
Federal Home Loan Bank advances | 130,000 | 20,000 |
Operating lease liabilities | 8,758 | 9,990 |
Accrued interest payable and other liabilities | 7,856 | 10,197 |
Total liabilities | 1,793,544 | 1,519,494 |
Commitments and contingencies | ||
Preferred stock, 10,000,000 shares authorized, no par value, no issued and outstanding shares | 0 | 0 |
Common stock, 60,000,000 shares authorized, no par value; 15,377,935 and 15,707,016 shares issued and outstanding, respectively, and included 38,400 and 37,400 shares of unvested restricted stock, respectively, at June 30, 2020 and December 31, 2019 | 163,759 | 169,221 |
Retained earnings | 61,532 | 57,670 |
Accumulated other comprehensive income (loss), net | 1,942 | (57) |
Total shareholders’ equity | 227,233 | 226,834 |
Total liabilities and shareholders’ equity | $ 2,020,777 | $ 1,746,328 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Securities held-to-maturity, fair value | $ 20,480 | |
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) | 15,377,935 | 15,707,016 |
Common stock, outstanding (in shares) | 15,377,935 | 15,707,016 |
Restricted stock awards | ||
Unvested restricted stock (in shares) | 38,400 | 37,400 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income: | ||||
Interest and fees on loans | $ 18,273 | $ 21,969 | $ 38,679 | $ 42,903 |
Interest on tax-exempt investment securities | 38 | 38 | 76 | 77 |
Interest on investment securities | 501 | 1,024 | 1,107 | 2,078 |
Interest and dividends on other interest-earning assets | 161 | 999 | 771 | 1,924 |
Total interest income | 18,973 | 24,030 | 40,633 | 46,982 |
Interest expense: | ||||
Interest on deposits | 3,409 | 6,200 | 8,401 | 11,865 |
Interest on borrowings | 201 | 138 | 303 | 272 |
Total interest expense | 3,610 | 6,338 | 8,704 | 12,137 |
Net interest income | 15,363 | 17,692 | 31,929 | 34,845 |
Provision for loan losses | 3,855 | 394 | 6,751 | 309 |
Net interest income after provision for loan losses | 11,508 | 17,298 | 25,178 | 34,536 |
Noninterest income: | ||||
Service charges and fees on deposits | 490 | 620 | 1,129 | 1,208 |
Loan servicing income | 902 | 492 | 1,456 | 1,123 |
Gain on sale of loans | 1,498 | 1,891 | 2,223 | 3,011 |
Other income | 243 | 303 | 600 | 597 |
Total noninterest income | 2,918 | 3,054 | 4,944 | 5,463 |
Noninterest expense: | ||||
Salaries and employee benefits | 5,761 | 6,600 | 12,312 | 13,222 |
Occupancy and equipment | 1,400 | 1,407 | 2,780 | 2,720 |
Professional fees | 509 | 686 | 1,306 | 1,444 |
Marketing and business promotion | 548 | 529 | 727 | 757 |
Data processing | 366 | 338 | 724 | 656 |
Director fees and expenses | 107 | 185 | 328 | 374 |
Regulatory assessments | 242 | 309 | 461 | 425 |
Other expenses | 763 | 930 | 1,625 | 1,675 |
Total noninterest expense | 9,696 | 10,984 | 20,263 | 21,273 |
Income before income taxes | 4,730 | 9,368 | 9,859 | 18,726 |
Income tax expense | 1,363 | 2,767 | 2,920 | 5,561 |
Net income | $ 3,367 | $ 6,601 | $ 6,939 | $ 13,165 |
Earnings per common share, basic (in dollars per share) | $ 0.22 | $ 0.41 | $ 0.45 | $ 0.82 |
Earnings per common share, diluted (in dollars per share) | $ 0.22 | $ 0.40 | $ 0.45 | $ 0.81 |
Weighted-average common shares outstanding, basic (in shares) | 15,337,405 | 16,017,089 | 15,421,552 | 16,008,325 |
Weighted-average common shares outstanding, diluted (in shares) | 15,373,655 | 16,330,039 | 15,522,626 | 16,303,274 |
Service charges and fees on deposits | ||||
Noninterest income: | ||||
Service charges and fees on deposits | $ 275 | $ 368 | $ 665 | $ 732 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,367 | $ 6,601 | $ 6,939 | $ 13,165 |
Other comprehensive income: | ||||
Unrealized gain on securities available-for-sale arising during the period | 712 | 1,638 | 2,054 | 2,810 |
Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale | 787 | 0 | 787 | 0 |
Income tax benefit related to items of other comprehensive income | (448) | (480) | (842) | (825) |
Total other comprehensive income, net of tax | 1,051 | 1,158 | 1,999 | 1,985 |
Total comprehensive income | $ 4,418 | $ 7,759 | $ 8,938 | $ 15,150 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance at Dec. 31, 2018 | $ 210,296 | $ (53) | $ 210,243 | $ 174,366 | $ 174,366 | $ 37,577 | $ (53) | $ 37,524 | $ (1,647) | $ (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, net of tax | 1,985 | 1,985 | ||||||||
Repurchase of common stock (in shares) | (57,551) | |||||||||
Repurchase of common stock | (974) | $ (974) | ||||||||
Share-based compensation expense | 323 | $ 323 | ||||||||
Stock options exercised (in shares) | 60,452 | |||||||||
Stock options exercised | 420 | $ 420 | ||||||||
Cash dividends declared on common stock | (1,762) | (1,762) | ||||||||
Ending balance at Jun. 30, 2019 | 223,400 | $ 174,135 | 48,927 | 338 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 15,980,655 | |||||||||
Beginning balance at Mar. 31, 2019 | 217,211 | $ 174,743 | 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, net of tax | 1,158 | 1,158 | ||||||||
Share-based compensation expense | 162 | $ 162 | ||||||||
Stock options exercised (in shares) | 27,055 | |||||||||
Stock options exercised | 204 | $ 204 | ||||||||
Cash dividends declared on common stock | (962) | (962) | ||||||||
Ending balance at Jun. 30, 2019 | 223,400 | $ 174,135 | 48,927 | 338 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 15,980,655 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 226,834 | $ 169,221 | 57,670 | (57) | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 15,707,016 | 15,707,016 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 6,939 | 6,939 | ||||||||
Other comprehensive income, net of tax | 1,999 | 1,999 | ||||||||
Issuance of restricted stock (in shares) | 1,000 | |||||||||
Repurchase of common stock (in shares) | (428,474) | |||||||||
Repurchase of common stock | (6,487) | $ (6,487) | ||||||||
Share-based compensation expense | $ 392 | $ 392 | ||||||||
Stock options exercised (in shares) | 98,393 | 98,393 | ||||||||
Stock options exercised | $ 633 | $ 633 | ||||||||
Cash dividends declared on common stock | (3,077) | (3,077) | ||||||||
Ending balance at Jun. 30, 2020 | $ 227,233 | $ 163,759 | 61,532 | 1,942 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 15,377,935 | 15,377,935 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||||
Beginning balance at Mar. 31, 2020 | $ 224,125 | $ 163,532 | 59,702 | 891 | ||||||
Beginning balance (in shares) at Mar. 31, 2020 | 15,370,086 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 3,367 | 3,367 | ||||||||
Other comprehensive income, net of tax | 1,051 | 1,051 | ||||||||
Repurchase of common stock (in shares) | (57,551) | |||||||||
Repurchase of common stock | (974) | $ (974) | ||||||||
Share-based compensation expense | $ 198 | $ 198 | ||||||||
Stock options exercised (in shares) | 7,849 | 7,849 | ||||||||
Stock options exercised | $ 29 | $ 29 | ||||||||
Cash dividends declared on common stock | (1,537) | (1,537) | ||||||||
Ending balance at Jun. 30, 2020 | $ 227,233 | $ 163,759 | $ 61,532 | $ 1,942 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 15,377,935 | 15,377,935 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.10 | $ 0.06 | $ 0.20 | $ 0.11 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 6,939 | $ 13,165 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of premises and equipment | 745 | 763 |
Net amortization of premiums on securities | 413 | 406 |
Net accretion of discounts on loans | (1,558) | (2,041) |
Net accretion of deferred loan costs (fees) | (770) | (209) |
Amortization of servicing assets | 996 | 1,213 |
Provision for loan losses | 6,751 | 309 |
Deferred tax benefit | (1,901) | (689) |
Stock-based compensation | 392 | 323 |
Gain on sale of loans | (2,223) | (3,011) |
Originations of loans held-for-sale | (48,559) | (47,532) |
Proceeds from sales of and principal collected on loans held-for-sale | 49,247 | 56,693 |
Change in accrued interest receivable and other assets | (3,039) | (12) |
Change in accrued interest payable and other liabilities | (2,623) | (1,920) |
Net cash provided by operating activities | 4,810 | 17,458 |
Cash flows from investing activities | ||
Purchase of securities available-for-sale | (24,394) | (6,247) |
Proceeds from maturities, calls, and paydowns of securities available-for-sale | 15,184 | 13,179 |
Purchase of securities held-to-maturity | 0 | (2,150) |
Proceeds from maturities and paydowns of securities held-to-maturity | 1,309 | 1,149 |
Proceeds from sale of loans held-for-sale previously classified as held-for-investment | 664 | 303 |
Net change in loans held-for-investment | (103,260) | (56,712) |
Purchase of Federal Home Loan Bank stock | (102) | (912) |
Purchases of premises and equipment | (1,528) | (513) |
Net cash used in investing activities | (112,127) | (51,903) |
Cash flows from financing activities | ||
Net increase in deposits | 167,623 | 2,773 |
Net change in short-term Federal Home Loan Bank advances | 0 | 15,000 |
Proceeds from long-term Federal Home Loan Bank advances | 140,000 | 0 |
Repayment of long-term Federal Home Loan Bank advances | (30,000) | (10,000) |
Stock options exercised | 633 | 420 |
Repurchase of common stock | (6,487) | (974) |
Cash dividends paid on common stock | (3,077) | (1,762) |
Net cash provided by financing activities | 268,692 | 5,457 |
Net increase (decrease) in cash and cash equivalents | 161,375 | (28,988) |
Cash and cash equivalents at beginning of period | 146,228 | 162,273 |
Cash and cash equivalents at end of period | 307,603 | 133,285 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 10,822 | 13,017 |
Income taxes paid | 4,131 | 7,322 |
Supplemental disclosures of non-cash investment activities: | ||
Loans transferred to loans held-for-sale | 1,355 | 303 |
Loans transferred to other real estate owned | 54 | 50 |
Reclassification of securities held-to-maturity to securities available-for-sale | 18,777 | 0 |
Right of use assets obtained in exchange for lease obligations | $ 54 | $ 1,588 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
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 Englewood Cliffs, 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, 2019 filed by the Company with the SEC. The December 31, 2019 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, 2019 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, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Principles of Consolidation The consolidated financial statements include the accounts of PCB Bancorp and its wholly owned subsidiary as of June 30, 2020 and December 31, 2019 and for the three and six months ended June 30, 2020 and 2019. 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, 2019 filed with the SEC. 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. Reclassification of Securities Held-To-Maturity to Securities Available-For-Sale During the three months ended June 30, 2020, the Company transferred securities held-to-maturity to securities available-for-sale as a part of the Company’s liquidity management plan in response to the COVID-19 pandemic. Management determined that its securities held-to-maturity no longer adhere to the Company’s current liquidity management plan and could be sold to potentially improve liquidity position. Accordingly, the Company was no longer able to assert that it had the intent to hold these securities until maturity and the Company’s ability to assert that it has the intent and ability to hold to maturity debt securities will be limited for up to two years. The Company transferred all securities held-to-maturity of $18.8 million to securities available-for-sale, which resulted in a pre-tax increase to accumulated other comprehensive income of $787 thousand. Loan Modifications Related to the COVID-19 Pandemic On March 27, 2020, the CARES Act was enacted and provided financial institutions the option to temporarily suspend certain requirements under GAAP related to troubled debt restructurings (“TDRs”) for a limited period of time to account for the effect of the COVID-19 pandemic. Under the CARES Act, modifications made from March 1, 2020 through the earlier of December 31, 2020 and 60 days after the end of the national emergency on a good faith basis in response to the COVID-19 pandemic to borrowers whose loan status were current as of December 31, 2019. The banking agencies also issued an Interagency-Statement to encourage banks to work prudently with borrowers and describe the agencies’ interpretation of how accounting rules for TDR apply to certain modifications related to the COVID-19 pandemic. During the three months ended June 30, 2020, the Company provided modifications, including payment deferments and interest only payments, to customers for the aggregated carrying value of $484.0 million that were adversely affected by the COVID-19 pandemic. As of June 30, 2020, all loans with modifications related to the COVID-19 pandemic were accounted for under section 4013 of the CARES Act and not considered TDRs nor reported past due. These loans had modification terms of 6-month or less and were on accrual status and classified as pass as of June 30, 2020. Small Business Administration Paycheck Protection Program Small Business Administration (“SBA”) launched the Paycheck Protection Program (“PPP”) to provide a direct incentive for small businesses to keep their workers on the payroll in respond to the COVID-19 pandemic. SBA will forgive loans if all employee retention criteria are met and the funds are used for eligible expenses. Since the launch of PPP, the Company has extended 1,551 SBA PPP loans totaling $133.7 million, net of unamortized deferred fees and costs, as of June 30, 2020. The Company deferred loan origination fees of $5.6 million and direct origination costs of $1.1 million on SBA PPP loans. The Company amortizes these deferred fees and costs without prepayment assumption using the contractual lives of SBA PPP loans. The SBA guarantee on PPP loans cannot be separated from the loan and therefore is not a separate unit of account. The Company considered the SBA guarantee in the allowance for loan evaluation and determined that it is not required to reserve additional allowance for loan losses on SBA PPP loans at June 30, 2020. Adopted Accounting Pronouncements During the six months ended June 30, 2020, there were no significant accounting pronouncements applicable to the Company that became effective. Recent Accounting Pronouncements Not Yet Adopted The following is recently issued accounting pronouncements applicable to the Company that has not yet been adopted: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 2019, the FASB amended this ASU, which delays the effective date to 2023 for certain SEC filers that are Smaller Reporting Companies, which would apply to the Company. The Company plans to adopt this ASU at the delayed effective date of January 1, 2023. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting Standards Codification (“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 Significant Unobservable Inputs Total June 30, 2020 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ 73,158 $ — $ 73,158 Residential collateralized mortgage obligations — 35,646 — 35,646 SBA loan pool securities — 13,121 — 13,121 Municipal bonds — 6,124 — 6,124 Total securities available-for-sale — 128,049 — 128,049 Total assets measured at fair value on a recurring basis $ — $ 128,049 $ — $ 128,049 Total liabilities measured at fair value on a recurring basis $ — $ — $ — $ — December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ 38,738 $ — $ 38,738 Residential collateralized mortgage obligations — 43,894 — 43,894 SBA loan pool securities — 14,152 — 14,152 Municipal bonds — 782 — 782 Total securities available-for-sale — 97,566 — 97,566 Total assets measured at fair value on a recurring basis $ — $ 97,566 $ — $ 97,566 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 Significant Unobservable Inputs Total June 30, 2020 Impaired loans: SBA property $ — $ — $ 261 $ 261 Commercial lines of credit — — 1,642 1,642 SBA commercial term — — 11 11 Total impaired loans — — 1,914 1,914 Total assets measured at fair value on a non-recurring basis $ — $ — $ 1,914 $ 1,914 Total liabilities measured at fair value on a non-recurring basis $ — $ — $ — $ — December 31, 2019 Impaired loans: SBA property $ — $ — $ 116 $ 116 Commercial lines of credit — — 1,562 1,562 Total impaired loans — — 1,678 1,678 Total assets measured at fair value on a non-recurring basis $ — $ — $ 1,678 $ 1,678 Total liabilities measured at fair value on a non-recurring basis $ — $ — $ — $ — The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a non-recurring basis as of the dates indicated: ($ in thousands) Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted-Average) June 30, 2020 Impaired loans: SBA property $ 261 Fair value of collateral NM NM Commercial lines of credit $ 1,642 Sales comparison approach Adjustment for differences between the comparable estate sales -14% to 48% (10.2%) Income approach Adjustment for differences in net operating income expectations 11% to 38% (13.8%) Capitalization rate 5.0% SBA commercial term $ 11 Fair value of collateral NM NM December 31, 2019 Impaired loans: SBA property $ 116 Fair value of collateral NM NM Commercial lines of credit $ 1,562 Sales comparison approach Adjustment for differences between the comparable estate sales -4% to 26% (0.86%) Income approach Adjustment for differences in net operating income expectations -4% to -11% (-6.20%) Capitalization rate 5.0% For assets measured at fair value, the following table presents the total net losses, which include charge-offs, recoveries, and specific reserves recorded for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Collateral dependent impaired loans: SBA property $ (111) $ (18) $ (138) $ (20) Commercial lines of credit (214) — (720) — SBA commercial term — — (164) — Net losses recognized $ (325) $ (18) $ (1,022) $ (20) 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, 2020 Financial assets: Interest-bearing deposits in other financial institutions $ 289,348 $ 289,348 $ 289,348 $ — $ — Securities available-for-sale 128,049 128,049 — 128,049 — Loans held-for-sale 4,102 4,188 — 4,188 — Net loans held-for-investment 1,533,341 1,543,212 — — 1,543,212 FHLB and other restricted stock 8,447 N/A N/A N/A N/A Accrued interest receivable 9,498 9,498 10 359 9,129 Financial liabilities: Deposits $ 1,646,930 $ 1,673,664 $ — $ — $ 1,673,664 FHLB advances 130,000 130,442 — 130,442 — Accrued interest payable 3,886 3,886 — 2 3,884 December 31, 2019 Financial assets: Interest-bearing deposits in other financial institutions $ 128,420 $ 128,420 $ 128,420 $ — $ — Securities available-for-sale 97,566 97,566 — 97,566 — Securities held-to-maturity 20,154 20,480 — 20,480 — Loans held-for-sale 1,975 2,102 — 2,102 — Net loans held-for-investment 1,436,451 1,449,383 — — 1,449,383 FHLB and other restricted stock 8,345 N/A N/A N/A N/A Accrued interest receivable 5,136 5,136 78 375 4,683 Financial liabilities: Deposits $ 1,479,307 $ 1,468,540 $ — $ — $ 1,468,540 FHLB advances 20,000 20,092 — 20,092 — Accrued interest payable 6,004 6,004 — 1 6,003 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2020 | |
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. During the three months ended June 30, 2020, the Company transferred securities held-to-maturity to securities available-for-sale as a part of the Company’s liquidity management plan in response to the COVID-19 pandemic. Management determined that its securities held-to-maturity no longer adhere to the Company’s current liquidity management plan and could be sold to potentially improve liquidity position. Accordingly, the Company was no longer able to assert that it had the intent to hold these securities until maturity and the Company’s ability to assert that it has the intent and ability to hold to maturity debt securities will be limited for up to two years. The Company transferred all securities held-to-maturity of $18.8 million to securities available-for-sale, which resulted in a pre-tax increase to accumulated other comprehensive income of $787 thousand. The following table presents the amortized cost and fair value of the investment securities as of the dates indicated: ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value June 30, 2020 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 71,680 $ 1,515 $ (37) $ 73,158 Residential collateralized mortgage obligations 35,367 382 (103) 35,646 SBA loan pool securities 12,769 375 (23) 13,121 Municipal bonds 5,677 447 — 6,124 Total securities available-for-sale $ 125,493 $ 2,719 $ (163) $ 128,049 December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 38,793 $ 96 $ (151) $ 38,738 Residential collateralized mortgage obligations 44,115 36 (257) 43,894 SBA loan pool securities 14,179 34 (61) 14,152 Municipal bonds 764 18 — 782 Total securities available-for-sale $ 97,851 $ 184 $ (469) $ 97,566 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 15,215 $ 70 $ (81) $ 15,204 Municipal bonds 4,939 337 — 5,276 Total securities held-to-maturity $ 20,154 $ 407 $ (81) $ 20,480 As of June 30, 2020 and December 31, 2019, pledged securities were $111.2 million and $99.3 million, respectively. These securities were pledged for the State Deposit from the California State Treasurer. The following table presents the amortized cost and fair value of the investment securities by contractual maturity as of June 30, 2020. Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Securities Available-For-Sale ($ in thousands) Amortized Cost Fair Value Within one year $ 101 $ 101 One to five years 2,209 2,308 Five to ten years 1,038 1,076 Greater than ten years 2,329 2,639 Residential mortgage-backed securities, residential collateralized mortgage obligations and SBA loan pool securities 119,816 121,925 Total $ 125,493 $ 128,049 The Company had no proceeds from sales and calls of securities available-for-sale during the three and six months ended June 30, 2020 and 2019. 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, 2020 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 4,742 $ (37) 3 $ — $ — — $ 4,742 $ (37) 3 Residential collateralized mortgage obligations 2,088 (6) 4 13,985 (97) 10 16,073 (103) 14 SBA loan pool securities 2,164 (5) 3 1,750 (18) 3 3,914 (23) 6 Total securities available-for-sale $ 8,994 $ (48) 10 $ 15,735 $ (115) 13 $ 24,729 $ (163) 23 December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 5,401 $ (28) 5 $ 15,772 $ (123) 23 $ 21,173 $ (151) 28 Residential collateralized mortgage obligations 15,392 (52) 13 19,834 (205) 23 35,226 (257) 36 SBA loan pool securities 4,787 (38) 5 2,308 (23) 4 7,095 (61) 9 Total securities available-for-sale $ 25,580 $ (118) 23 $ 37,914 $ (351) 50 $ 63,494 $ (469) 73 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ — $ — — $ 6,842 $ (81) 7 $ 6,842 $ (81) 7 Total securities held-to-maturity $ — $ — — $ 6,842 $ (81) 7 $ 6,842 $ (81) 7 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, 2020 and December 31, 2019 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, 2020 and December 31, 2019. 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. 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, 2020 and 2019. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 December 31, 2019 Real estate loans: Commercial property $ 813,409 $ 803,014 Residential property 223,923 235,046 SBA property 122,675 129,837 Construction 20,432 19,164 Total real estate loans 1,180,439 1,187,061 Commercial and industrial loans: Commercial term 98,936 103,380 Commercial lines of credit 96,339 111,768 SBA commercial term 22,650 25,332 SBA PPP 133,675 — Total commercial and industrial loans 351,600 240,480 Other consumer loans 21,550 23,290 Loans held-for-investment 1,553,589 1,450,831 Allowance for loan losses (20,248) (14,380) Net loans held-for-investment $ 1,533,341 $ 1,436,451 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, 2020 and December 31, 2019, the Company had $3.9 million and $3.8 million, respectively, of such loans outstanding. Loan Modifications Related to the COVID-19 Pandemic The Company provided modifications, including payment deferments and interest only payments, to customers that are adversely affected by the COVID-19. The loan modifications met all criteria under the CARES Act. Therefore, the modified loans were not considered TDRs or reported as past due as of June 30, 2020. The following table presents a summary of loans with modifications related to the COVID-19 pandemic by portfolio segment as of June 30, 2020: Modification Type ($ in thousands) Payment Deferment Interest Only Payment Total June 30, 2020 Real estate loans: Commercial property $ 369,716 $ 9,850 $ 379,566 Residential property 44,804 — 44,804 Commercial and industrial loans: Commercial term 53,277 4,882 58,159 Other consumer loans 1,507 — 1,507 Total $ 469,304 $ 14,732 $ 484,036 Allowance for Loan Losses The increase in risks associated with economic and business conditions as a result from the COVID-19 pandemic resulted an increase in allowance for loan losses of $4.2 million and $6.8 million for the three and six months ended June 30, 2020. The SBA guarantee on PPP loans cannot be separated from the loan and therefore is not a separate unit of account. The Company considered the SBA guarantee in the allowance for loan evaluation and determined that it is not required to reserve additional allowance for loan losses on SBA PPP loans at June 30, 2020. The following table presents the activities in allowance for loan losses by portfolio segment, which is consistent with the Company’s methodology for determining allowance for loan losses, for the three months ended June 30, 2020 and 2019: ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total Balance at April 1, 2020 $ 11,948 $ 4,549 $ 177 $ 16,674 Charge-offs (111) (241) (63) (415) Recoveries on loans previously charged off — 114 20 134 Provision (reversal) for loan losses 3,708 (85) 232 3,855 Balance at June 30, 2020 $ 15,545 $ 4,337 $ 366 $ 20,248 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 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, 2020 and 2019: ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total Balance at January 1, 2020 $ 9,854 $ 4,354 $ 172 $ 14,380 Charge-offs (138) (916) (139) (1,193) Recoveries on loans previously charged off 56 205 49 310 Provision for loan losses 5,773 694 284 6,751 Balance at June 30, 2020 $ 15,545 $ 4,337 $ 366 $ 20,248 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 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, 2020 Allowance for loan losses: Individually evaluated for impairment $ 1 $ — $ — $ 1 Collectively evaluated for impairment 15,544 4,337 366 20,247 Total $ 15,545 $ 4,337 $ 366 $ 20,248 Loans receivable: Individually evaluated for impairment $ 1,971 $ 2,398 $ — $ 4,369 Collectively evaluated for impairment 1,178,468 349,202 21,550 1,549,220 Total $ 1,180,439 $ 351,600 $ 21,550 $ 1,553,589 December 31, 2019 Allowance for loan losses: Individually evaluated for impairment $ 4 $ 15 $ — $ 19 Collectively evaluated for impairment 9,850 4,339 172 14,361 Total $ 9,854 $ 4,354 $ 172 $ 14,380 Loans receivable: Individually evaluated for impairment $ 2,158 $ 2,401 $ — $ 4,559 Collectively evaluated for impairment 1,184,903 238,079 23,290 1,446,272 Total $ 1,187,061 $ 240,480 $ 23,290 $ 1,450,831 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 recorded investment in loans by portfolio segment as of dates indicated: ($ in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2020 Real estate loans: Commercial property $ 813,072 $ — $ 337 $ — $ 813,409 Residential property 223,923 — — — 223,923 SBA property 119,566 71 3,038 — 122,675 Construction 20,432 — — — 20,432 Commercial and industrial loans: Commercial term 98,936 — — — 98,936 Commercial lines of credit 94,371 — 1,968 — 96,339 SBA commercial term 22,254 — 396 — 22,650 SBA PPP 133,675 — — — 133,675 Other consumer loans 21,480 — 70 — 21,550 Total $ 1,547,709 $ 71 $ 5,809 $ — $ 1,553,589 December 31, 2019 Real estate loans: Commercial property $ 802,373 $ — $ 641 $ — $ 803,014 Residential property 235,046 — — — 235,046 SBA property 124,135 72 5,630 — 129,837 Construction 17,453 1,711 — — 19,164 Commercial and industrial loans: Commercial term 103,380 — — — 103,380 Commercial lines of credit 109,880 — 1,888 — 111,768 SBA commercial term 24,677 — 655 — 25,332 Other consumer loans 23,242 — 48 — 23,290 Total $ 1,440,186 $ 1,783 $ 8,862 $ — $ 1,450,831 Substandard SBA property loans included $115 thousand and $2.4 million of guaranteed portion by the U.S. government agency at June 30, 2020 and December 31, 2019, respectively. All loans with modifications related to the COVID-19 pandemic were classified as pass at June 30, 2020. Past Due and Nonaccrual Loans The following table presents the aging of past due recorded investment in accruing loans and nonaccrual loans by portfolio segment as of dates indicated: Still Accruing ($ 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, 2020 Real estate loans: Residential property $ 262 $ — $ 696 $ — $ 958 SBA property — — — 1,351 1,351 Commercial and industrial loans: Commercial lines of credit — — — 1,968 1,968 SBA commercial term — — — 381 381 Other consumer loans 49 113 — 70 232 Total $ 311 $ 113 $ 696 $ 3,770 $ 4,890 December 31, 2019 Real estate loans: Residential property $ — $ 697 $ — $ — $ 697 SBA property 794 — — 442 1,236 Commercial and industrial loans: Commercial lines of credit — — — 1,888 1,888 SBA commercial term — 189 287 159 635 Other consumer loans 99 39 — 48 186 Total $ 893 $ 925 $ 287 $ 2,537 $ 4,642 There were no nonaccrual loans guaranteed by a U.S. government agency at June 30, 2020 and December 31, 2019. All loans with modifications related to the COVID-19 pandemic were on accrual status at June 30, 2020. The Company had a residential property loan past due 90 days or more and still accruing at June 30, 2020, which management believes that the loan is well secured and the Bank is in the process of collection. 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, 2020 Real estate loans: Commercial property $ 337 $ 335 $ — $ — $ — SBA property 1,458 1,596 176 176 1 Commercial and industrial loans: Commercial term 26 26 — — — Commercial lines of credit 1,968 1,968 — — — SBA commercial term 404 446 — — — Total $ 4,193 $ 4,371 $ 176 $ 176 $ 1 December 31, 2019 Real estate loans: Commercial property $ 339 $ 338 $ — $ — $ — SBA property 1,699 1,828 120 154 4 Commercial and industrial loans: Commercial term 28 28 — — — Commercial lines of credit 1,888 1,888 — — — SBA commercial term 457 495 28 28 15 Total $ 4,411 $ 4,577 $ 148 $ 182 $ 19 The following table presents information on the recorded investment in impaired loans by portfolio segment for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 ($ in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Real estate loans: Commercial property $ 337 $ 6 $ — $ — SBA property 1,692 4 1,666 6 Commercial and industrial loans: Commercial term 26 1 52 1 Commercial lines of credit 2,074 — — — SBA commercial term 418 — 59 1 Total $ 4,547 $ 11 $ 1,777 $ 8 The following table presents information on the recorded investment in impaired loans by portfolio segment for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 ($ in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Real estate loans: Commercial property $ 338 $ 11 $ — $ — Residential property — — 76 — SBA property 1,728 9 1,507 12 Commercial and industrial loans: Commercial term 26 1 57 2 Commercial lines of credit 2,254 — — — SBA commercial term 480 1 150 2 Total $ 4,826 $ 22 $ 1,790 $ 16 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) 2020 2019 2020 2019 Interest income that would have been recognized had impaired loans performed in accordance with their original terms $ 67 $ 32 $ 146 $ 64 Less: interest income recognized on impaired loans on a cash basis (11) (8) (22) (16) Interest income foregone on impaired loans $ 56 $ 24 $ 124 $ 48 Troubled Debt Restructurings The following table presents the composition of loans that were modified as TDRs by portfolio segment as of the dates indicated: June 30, 2020 December 31, 2019 ($ in thousands) Accruing Nonaccrual Total Accruing Nonaccrual Total Real estate loans: Commercial property $ 337 $ — $ 337 $ 339 $ — $ 339 SBA property 282 40 322 294 121 415 Commercial and industrial loans: Commercial term 26 — 26 28 — 28 SBA commercial term 24 — 24 39 — 39 Total $ 669 $ 40 $ 709 $ 700 $ 121 $ 821 The following table presents information on new loans that were modified as TDRs for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 ($ 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, 2020 and 2019: Six Months Ended June 30, 2020 2019 ($ 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 Commercial and industrial loans: SBA commercial term (1) 2 $ 37 $ 37 — $ — $ — Total 2 $ 37 $ 37 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, 2020 and December 31, 2019. 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 $4 thousand of allowance for loan losses as of June 30, 2020 and December 31, 2019, respectively. There were no loans that were modified as TDRs for which there was a payment default within twelve months following the modification for the three months ended June 30, 2020 and 2019. The following table presents information on loans that were modified as TDRs for which there was a payment default within twelve months following the modification for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 ($ 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 1 $ 26 — $ — Total 1 $ 26 — $ — Purchases, Sales, and Transfers The following table presents a summary of loans held-for-investment transferred to loans held-for-sale for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Real estate loans: Residential property $ — $ — $ 1,125 $ 303 Commercial and industrial loans: SBA commercial term — — 230 — Total $ — $ — $ 1,355 $ 303 The following table presents a summary of loans held-for-sale transferred to loans held-for-investment for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Real estate loans: Residential property $ 697 $ — $ 697 $ — Total $ 697 $ — $ 697 $ — The Company had no purchases of loans held-for-investment during the three months ended June 30, 2020 and 2019. The Company had no sales of loans held-for-investment during the three months ended June 30, 2020 and 2019. When the Company changes its intent to hold loans for investment, the loans are transferred to held-for-sale. Loans Held-For-Sale The following table presents a composition of loans held-for-sale as of the dates indicated: ($ in thousands) June 30, 2020 December 31, 2019 Real estate loans: Residential property $ 3,267 $ 760 SBA property 835 150 Commercial and industrial loans: SBA commercial term — 1,065 Total $ 4,102 $ 1,975 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, 2020 | |
Transfers and Servicing [Abstract] | |
Servicing Assets | Servicing Assets At June 30, 2020 and December 31, 2019, total servicing assets were $6.4 million and $6.8 million, respectively. The Company sold loans of $27.1 million and $29.2 million, respectively, with the servicing rights retained and recognized a net gain on sale of $1.4 million and $1.9 million, respectively, during the three months ended June 30, 2020 and 2019. During the six months ended June 30, 2020 and 2019, the Company sold loans of $38.6 million and $50.4 million, respectively, with the servicing rights retained and recognized a net gain on sale of $2.1 million and $3.0 million, respectively. Loan servicing income was $902 thousand and $492 thousand, respectively, for the three months ended June 30, 2020 and 2019, and $1.5 million and $1.1 million, respectively, for the six months ended June 30, 2020 and 2019. The following table presents the composition of servicing assets with key assumptions used to estimate the fair value as of the dates indicated: June 30, 2020 December 31, 2019 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Carrying amount $ 125 $ 5,554 $ 720 $ 171 $ 5,805 $ 822 Fair value $ 160 $ 7,136 $ 927 $ 200 $ 6,693 $ 976 Discount rate 11.25 % 13.25 % 12.75 % 11.25 % 13.25 % 12.75 % Prepayment speed 25.10 % 14.08 % 13.44 % 26.60 % 16.28 % 16.03 % Weighted average remaining life 31.3 years 21.1 years 6.8 years 24.2 years 21.3 years 7.0 years Underlying loans being serviced $ 25,005 $ 390,178 $ 78,817 $ 32,428 $ 384,007 $ 82,181 The following table presents activity in servicing assets for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Balance at beginning of period $ 153 $ 5,448 $ 757 $ 221 $ 6,277 $ 987 Additions — 391 42 — 386 56 Amortization (28) (285) (79) (17) (569) (111) Balance at end of period $ 125 $ 5,554 $ 720 $ 204 $ 6,094 $ 932 The following table presents activity in servicing assets for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Balance at beginning of period $ 171 $ 5,805 $ 822 $ 244 $ 6,349 $ 1,073 Additions — 513 84 — 670 107 Amortization (46) (764) (186) (40) (925) (248) Balance at end of period $ 125 $ 5,554 $ 720 $ 204 $ 6,094 $ 932 |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2020 | |
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. 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 $53 thousand to retained earnings at the date of adoption. The Company made an election to include both the lease and non-lease components as a single component and account for it as a lease. The Company’s operating leases are for its headquarters office spaces, and retail branch and LPO locations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one The following table presents operating lease cost and supplemental cash flow information related to leases for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Operating lease cost (1) $ 576 $ 649 $ 1,267 $ 1,273 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 694 $ 669 1,427 1,319 Right of use assets obtained in exchange for lease obligations $ 17 $ 1,523 54 1,588 (1) Included in Occupancy and Equipment on the Consolidated Statements of Income. The Company used the incremental borrowing rate based on the information available at lease commencement in determining the present value of lease payments. The following table presents supplemental balance sheet information related to leases as of the dates indicated: ($ in thousands) June 30, 2020 December 31, 2019 Operating leases: Operating lease assets $ 7,843 $ 8,991 Operating lease liabilities $ 8,758 $ 9,990 Weighted-average remaining lease term 4.6 years 5.0 years Weighted-average discount rate 2.72 % 2.81 % The following table presets maturities of operating lease liabilities as of June 30, 2020: ($ in thousands) June 30, 2020 Maturities: 2020 $ 1,293 2021 2,303 2022 2,171 2023 1,828 2024 547 After 2024 1,351 Total lease payment 9,493 Imputed Interest (735) Present value of operating lease liabilities $ 8,758 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
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 $130.0 million and $20.0 million at June 30, 2020 and December 31, 2019, respectively. FHLB advances consisted of fixed interest rate term borrowings of $130.0 million with original maturity terms ranging from 6 months to 5 years and weighted-average interest rate of 0.51% at June 30, 2020. At December 31, 2019, FHLB advances consisted of fixed interest rate term borrowings with original maturity terms ranging from 3 to 5 years and weighted-average interest rate of 1.92%. Each borrowing is payable at its maturity date. Borrowings paid early are subject to a prepayment penalty. At June 30, 2020 and December 31, 2019, loans pledged to secure borrowings from the FHLB were $580.6 million and $621.7 million, respectively. The Company’s investment in capital stock of the FHLB of San Francisco totaled $8.3 million and $8.2 million, respectively, at June 30, 2020 and December 31, 2019. The Company had additional borrowing capacity of $320.0 million and $404.8 million, respectively, from the FHLB as of June 30, 2020 and December 31, 2019. Other Borrowing Arrangements At June 30, 2020, the Company had $40.3 million of unused borrowing capacity from the Federal Reserve Discount Window, to which the Company pledged loans with a carrying value of $48.9 million with no outstanding borrowings. In addition, the Company may borrow up to approximately $65.0 million overnight federal funds lines with correspondent financial institutions at June 30, 2020. |
Shareholders_ Equity
Shareholders’ Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Shareholders’ Equity | Shareholders’ Equity Stock Repurchase On January 23, 2020, the Company announced that on November 22, 2019, its Board of Directors approved a $6.5 million stock repurchase program to commence upon the opening of the Company’s trading window for the first quarter of 2020 and continue through November 20, 2021. The Company completed the repurchase program in March 2020. The Company repurchased and retired 428,474 shares of common stock at a weighted-average price of $15.14 per share, totaling $6.5 million under this repurchase program. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation On July 25, 2013, the Company adopted 2013 Equity Based Stock Compensation Plan (“2013 EBSC Plan”) approved by its shareholders to replace the 2003 Stock Option Plan. The 2013 EBSC Plan provides 1,114,446 shares of common stock for equity based compensation awards including incentive and non-qualified stock options and restricted stock awards. As of June 30, 2020, there were 543,354 shares available for future grants. Share-Based Compensation Expense The following table presents share-based compensation expense and the related tax benefits for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Share-based compensation expense related to: Stock options $ 160 $ 162 $ 316 $ 323 Restricted stock awards 38 — 76 — Total share-based compensation expense $ 198 $ 162 $ 392 $ 323 Related tax benefits $ 32 $ 11 $ 40 $ 22 The following table presents unrecognized share-based compensation expense as of June 30, 2020: ($ in thousands) Unrecognized Expense Weighted-Average Remaining Expected Recognition Period Unrecognized share-based compensation expense related to: Stock options $ 646 2.1 years Restricted stock awards 504 3.6 years Total unrecognized share-based compensation expense $ 1,150 2.7 years Stock Options The Company has issued stock options to certain employees, officers and directors. Stock options are issued with exercise prices of the closing market price of the Company’s stock on the grant date, and generally have a three The following table represents stock option activity for the three months ended June 30, 2020: Three Months Ended June 30, 2020 ($ 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 733,992 $ 10.76 5.77 years $ (722) Exercised (7,849) $ 6.68 3.83 years Outstanding at end of period 726,143 $ 10.84 5.56 years $ (393) Exercisable at end of period 501,966 $ 9.75 5.00 years $ 277 The following table represents stock option activity for the six months ended June 30, 2020: Six Months Ended June 30, 2020 ($ 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 829,376 $ 10.32 5.80 years $ 5,776 Exercised (98,393) $ 6.43 3.42 years Forfeited (4,840) $ 10.33 5.58 years Outstanding at end of period 726,143 $ 10.84 5.56 years $ (393) Exercisable at end of period 501,966 $ 9.75 5.00 years $ 277 The following table represents information regarding unvested stock options for the three and six months ended June 30, 2020: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Shares Weighted-Average Exercise Price Per Share Number of Shares Weighted-Average Exercise Price Per Share Outstanding at beginning of period 224,177 $ 13.29 246,317 $ 13.31 Exercised — $ — (17,300) $ 14.47 Forfeited — $ — (4,840) $ 10.33 Outstanding at end of period 224,177 $ 13.29 224,177 $ 13.29 Restricted Stock Awards The Company also has granted restricted stock awards (“RSAs”) to certain employees and officers. The RSAs are valued at the closing market price of the Company’s stock on the grant date and generally have a three Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Shares Weighted-Average Grant Date Fair Value Per Share Number of Shares Weighted-Average Grant Date Fair Value Per Share Outstanding at beginning of period 38,400 $ 16.53 37,400 $ 16.60 Granted — $ — 1,000 $ 13.72 Outstanding at end of period 38,400 $ 16.53 38,400 $ 16.53 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $1.4 million and $2.8 million, respectively, and the effective tax rate was 28.8% and 29.5%, respectively, for the three months ended June 30, 2020 and 2019. For the six months ended June 30, 2020 and 2019, income tax expense was $2.9 million and $5.6 million, respectively, and the effective tax rate was 29.6% and 29.7%, respectively. At June 30, 2020 and December 31, 2019, the Company had no unrecognized tax benefits, or accrued interest or penalties. The Company and its subsidiaries are subject to U.S. federal and various state jurisdictions income tax examinations. As of June 30, 2020, the Company is no longer subject to examination by taxing authorities for tax years before 2016 for federal taxes and before 2015 for various state jurisdictions. The statute of limitations vary by state, and state taxes other than California have been minimal and immaterial to the Company’s financial results. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computations of basic and diluted EPS for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands, except per share) 2020 2019 2020 2019 Basic earnings per share: Net income $ 3,367 $ 6,601 $ 6,939 $ 13,165 Less: income allocated to unvested restricted stock (8) — (17) — Net income allocated to common stock $ 3,359 $ 6,601 $ 6,922 $ 13,165 Weighted-average total common shares outstanding 15,375,805 16,017,089 15,459,639 16,008,325 Less: weighted-average unvested restricted stock (38,400) — (38,087) — Weighted-average common shares outstanding, basic 15,337,405 16,017,089 15,421,552 16,008,325 Basic earnings per share $ 0.22 $ 0.41 $ 0.45 $ 0.82 Diluted earnings per share: Net income allocated to common stock $ 3,359 $ 6,601 $ 6,922 $ 13,165 Weighted-average common shares outstanding, basic 15,337,405 16,017,089 15,421,552 16,008,325 Diluted effect of stock options 36,250 312,950 101,074 294,949 Weighted-average common shares outstanding, diluted 15,373,655 16,330,039 15,522,626 16,303,274 Diluted earnings per share $ 0.22 $ 0.40 $ 0.45 $ 0.81 There were 660,859 and 163,000 stock options were excluded in computing diluted EPS because they were anti-dilutive for three and six months ended June 30, 2020, respectively. For three and six months ended June 30, 2019, there were 15,000 and 15,000 stock options excluded in computing diluted EPS because they were anti-dilutive, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 and December 31, 2019, the Company had the following outstanding financial commitments whose contractual amount represents credit risk: ($ in thousands) June 30, 2020 December 31, 2019 Commitments to extend credit $ 194,431 $ 171,608 Standby letters of credit 4,300 3,300 Commercial letters of credit 416 292 Total $ 199,147 $ 175,200 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 $270 thousand and $301 thousand, respectively, at June 30, 2020 and December 31, 2019, 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. COVID-19 Pandemic The ongoing COVID-19 pandemic, and governmental and societal responses thereto, have had a severe impact on global economic and market conditions, including significant disruption of, and volatility in, financial markets; global supply chain disruptions; and the institution of social distancing and shelter-in-place requirements that have resulted in temporary closures of many businesses, lost revenues, and increased unemployment throughout the U.S., but also specifically in California, where most of the Company’s operations and a large majority of its customers are located. These conditions have impacted and are expected in the future to impact its business, results of operations, and financial condition negatively. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2020 | |
Regulated Operations [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 of 2.50% above the adequately capitalized risk-based capital ratios. Management believes as of June 30, 2020 and December 31, 2019, 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 $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums. The Company and the Bank’s capital conservation buffer was 9.09% and 8.83%, respectively, as of June 30, 2020, and 8.90% and 8.71%, respectively, as of December 31, 2019. Unrealized gain or loss on securities available-for-sale is not included in computing regulatory capital. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Actual Minimum Capital Requirement To Be Well Capitalized Under Prompt Corrective Provisions ($ in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2020 PCB Bancorp Common tier 1 capital (to risk-weighted assets) $ 224,570 15.83 % $ 63,828 4.5 % N/A N/A Total capital (to risk-weighted assets) 242,335 17.09 % 113,472 8.0 % N/A N/A Tier 1 capital (to risk-weighted assets) 224,570 15.83 % 85,104 6.0 % N/A N/A Tier 1 capital (to average assets) 224,570 11.49 % 78,175 4.0 % N/A N/A Pacific City Bank Common tier 1 capital (to risk-weighted assets) $ 220,907 15.58 % $ 63,825 4.5 % $ 92,192 6.5 % Total capital (to risk-weighted assets) 238,670 16.83 % 113,467 8.0 % 141,834 10.0 % Tier 1 capital (to risk-weighted assets) 220,907 15.58 % 85,100 6.0 % 113,467 8.0 % Tier 1 capital (to average assets) 220,907 11.30 % 78,172 4.0 % 97,715 5.0 % December 31, 2019 PCB Bancorp Common tier 1 capital (to risk-weighted assets) $ 226,069 15.87 % $ 64,087 4.5 % N/A N/A Total capital (to risk-weighted assets) 240,750 16.90 % 113,933 8.0 % N/A N/A Tier 1 capital (to risk-weighted assets) 226,069 15.87 % 85,450 6.0 % N/A N/A Tier 1 capital (to average assets) 226,069 13.23 % 68,355 4.0 % N/A N/A Pacific City Bank Common tier 1 capital (to risk-weighted assets) $ 223,241 15.68 % $ 64,084 4.5 % $ 92,566 6.5 % Total capital (to risk-weighted assets) 237,922 16.71 % 113,928 8.0 % 142,410 10.0 % Tier 1 capital (to risk-weighted assets) 223,241 15.68 % 85,446 6.0 % 113,928 8.0 % Tier 1 capital (to average assets) 223,241 13.06 % 68,354 4.0 % 85,442 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. 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 implemented many actions it believes fully respond to the requirements of the Order and submitted all required reports to the FDIC and CDBO. Even though the Company believes that the Bank has addressed the items under the Order, it will take some time to address, to the satisfaction of the regulators, all of the specific issues unique to the Bank’s operation. While management is confident that all provisions of the Order will be complied with over time, compliance with and satisfaction of the Order will be determined in the sole discretion of the FDIC and CDBO. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 Noninterest income in-scope of Topic 606 Service charges and fees on deposits: Monthly service fees $ 21 $ 29 $ 49 $ 57 Account analysis fees 193 242 428 469 Non-sufficient funds charges 42 73 142 159 Other deposit related fees 19 24 46 47 Total service charges and fees on deposits 275 368 665 732 Debit card fees 49 68 118 133 Wire transfer fees 126 126 254 235 Other service charges 40 58 92 108 Total $ 490 $ 620 $ 1,129 $ 1,208 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared on Common Stock. On July 23, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per common share. The dividend will be paid on or about September 15, 2020, to shareholders of record as of the close of business on August 31, 2020. The Company has evaluated the effects of events that have occurred subsequent to June 30, 2020 through the issuance date of these consolidated financial statements (unaudited). Other than the event 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, 2020 | |
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, 2019 filed by the Company with the SEC. The December 31, 2019 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, 2019 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, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. |
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, 2020 and December 31, 2019 and for the three and six months ended June 30, 2020 and 2019. 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, 2020, there were no significant accounting pronouncements applicable to the Company that became effective. Recent Accounting Pronouncements Not Yet Adopted The following is recently issued accounting pronouncements applicable to the Company that has not yet been adopted: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 2019, the FASB amended this ASU, which delays the effective date to 2023 for certain SEC filers that are Smaller Reporting Companies, which would apply to the Company. The Company plans to adopt this ASU at the delayed effective date of January 1, 2023. |
Small Business Administration Paycheck Protection Program | Small Business Administration Paycheck Protection Program Small Business Administration (“SBA”) launched the Paycheck Protection Program (“PPP”) to provide a direct incentive for small businesses to keep their workers on the payroll in respond to the COVID-19 pandemic. SBA will forgive loans if all employee retention criteria are met and the funds are used for eligible expenses. Since the launch of PPP, the Company has extended 1,551 SBA PPP loans totaling $133.7 million, net of unamortized deferred fees and costs, as of June 30, 2020. The Company deferred loan origination fees of $5.6 million and direct origination costs of $1.1 million on SBA PPP loans. The Company amortizes these deferred fees and costs without prepayment assumption using the contractual lives of SBA PPP loans. The SBA guarantee on PPP loans cannot be separated from the loan and therefore is not a separate unit of account. The Company considered the SBA guarantee in the allowance for loan evaluation and determined that it is not required to reserve additional allowance for loan losses on SBA PPP loans at June 30, 2020. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of dates indicated: Fair Value Measurement Level ($ in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total June 30, 2020 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ 73,158 $ — $ 73,158 Residential collateralized mortgage obligations — 35,646 — 35,646 SBA loan pool securities — 13,121 — 13,121 Municipal bonds — 6,124 — 6,124 Total securities available-for-sale — 128,049 — 128,049 Total assets measured at fair value on a recurring basis $ — $ 128,049 $ — $ 128,049 Total liabilities measured at fair value on a recurring basis $ — $ — $ — $ — December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ — $ 38,738 $ — $ 38,738 Residential collateralized mortgage obligations — 43,894 — 43,894 SBA loan pool securities — 14,152 — 14,152 Municipal bonds — 782 — 782 Total securities available-for-sale — 97,566 — 97,566 Total assets measured at fair value on a recurring basis $ — $ 97,566 $ — $ 97,566 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 Significant Unobservable Inputs Total June 30, 2020 Impaired loans: SBA property $ — $ — $ 261 $ 261 Commercial lines of credit — — 1,642 1,642 SBA commercial term — — 11 11 Total impaired loans — — 1,914 1,914 Total assets measured at fair value on a non-recurring basis $ — $ — $ 1,914 $ 1,914 Total liabilities measured at fair value on a non-recurring basis $ — $ — $ — $ — December 31, 2019 Impaired loans: SBA property $ — $ — $ 116 $ 116 Commercial lines of credit — — 1,562 1,562 Total impaired loans — — 1,678 1,678 Total assets measured at fair value on a non-recurring basis $ — $ — $ 1,678 $ 1,678 Total liabilities measured at fair value on a non-recurring basis $ — $ — $ — $ — |
Quantitative Information About Level 3 Fair Value Measurements | The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a non-recurring basis as of the dates indicated: ($ in thousands) Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted-Average) June 30, 2020 Impaired loans: SBA property $ 261 Fair value of collateral NM NM Commercial lines of credit $ 1,642 Sales comparison approach Adjustment for differences between the comparable estate sales -14% to 48% (10.2%) Income approach Adjustment for differences in net operating income expectations 11% to 38% (13.8%) Capitalization rate 5.0% SBA commercial term $ 11 Fair value of collateral NM NM December 31, 2019 Impaired loans: SBA property $ 116 Fair value of collateral NM NM Commercial lines of credit $ 1,562 Sales comparison approach Adjustment for differences between the comparable estate sales -4% to 26% (0.86%) Income approach Adjustment for differences in net operating income expectations -4% to -11% (-6.20%) Capitalization rate 5.0% |
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, and specific reserves recorded for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Collateral dependent impaired loans: SBA property $ (111) $ (18) $ (138) $ (20) Commercial lines of credit (214) — (720) — SBA commercial term — — (164) — Net losses recognized $ (325) $ (18) $ (1,022) $ (20) |
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, 2020 Financial assets: Interest-bearing deposits in other financial institutions $ 289,348 $ 289,348 $ 289,348 $ — $ — Securities available-for-sale 128,049 128,049 — 128,049 — Loans held-for-sale 4,102 4,188 — 4,188 — Net loans held-for-investment 1,533,341 1,543,212 — — 1,543,212 FHLB and other restricted stock 8,447 N/A N/A N/A N/A Accrued interest receivable 9,498 9,498 10 359 9,129 Financial liabilities: Deposits $ 1,646,930 $ 1,673,664 $ — $ — $ 1,673,664 FHLB advances 130,000 130,442 — 130,442 — Accrued interest payable 3,886 3,886 — 2 3,884 December 31, 2019 Financial assets: Interest-bearing deposits in other financial institutions $ 128,420 $ 128,420 $ 128,420 $ — $ — Securities available-for-sale 97,566 97,566 — 97,566 — Securities held-to-maturity 20,154 20,480 — 20,480 — Loans held-for-sale 1,975 2,102 — 2,102 — Net loans held-for-investment 1,436,451 1,449,383 — — 1,449,383 FHLB and other restricted stock 8,345 N/A N/A N/A N/A Accrued interest receivable 5,136 5,136 78 375 4,683 Financial liabilities: Deposits $ 1,479,307 $ 1,468,540 $ — $ — $ 1,468,540 FHLB advances 20,000 20,092 — 20,092 — Accrued interest payable 6,004 6,004 — 1 6,003 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 71,680 $ 1,515 $ (37) $ 73,158 Residential collateralized mortgage obligations 35,367 382 (103) 35,646 SBA loan pool securities 12,769 375 (23) 13,121 Municipal bonds 5,677 447 — 6,124 Total securities available-for-sale $ 125,493 $ 2,719 $ (163) $ 128,049 December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 38,793 $ 96 $ (151) $ 38,738 Residential collateralized mortgage obligations 44,115 36 (257) 43,894 SBA loan pool securities 14,179 34 (61) 14,152 Municipal bonds 764 18 — 782 Total securities available-for-sale $ 97,851 $ 184 $ (469) $ 97,566 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 15,215 $ 70 $ (81) $ 15,204 Municipal bonds 4,939 337 — 5,276 Total securities held-to-maturity $ 20,154 $ 407 $ (81) $ 20,480 |
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, 2020 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 71,680 $ 1,515 $ (37) $ 73,158 Residential collateralized mortgage obligations 35,367 382 (103) 35,646 SBA loan pool securities 12,769 375 (23) 13,121 Municipal bonds 5,677 447 — 6,124 Total securities available-for-sale $ 125,493 $ 2,719 $ (163) $ 128,049 December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 38,793 $ 96 $ (151) $ 38,738 Residential collateralized mortgage obligations 44,115 36 (257) 43,894 SBA loan pool securities 14,179 34 (61) 14,152 Municipal bonds 764 18 — 782 Total securities available-for-sale $ 97,851 $ 184 $ (469) $ 97,566 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 15,215 $ 70 $ (81) $ 15,204 Municipal bonds 4,939 337 — 5,276 Total securities held-to-maturity $ 20,154 $ 407 $ (81) $ 20,480 |
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, 2020. 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 ($ in thousands) Amortized Cost Fair Value Within one year $ 101 $ 101 One to five years 2,209 2,308 Five to ten years 1,038 1,076 Greater than ten years 2,329 2,639 Residential mortgage-backed securities, residential collateralized mortgage obligations and SBA loan pool securities 119,816 121,925 Total $ 125,493 $ 128,049 |
Realized Gain (Loss) on Investments | The Company had no proceeds from sales and calls of securities available-for-sale during the three and six months ended June 30, 2020 and 2019. |
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, 2020 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 4,742 $ (37) 3 $ — $ — — $ 4,742 $ (37) 3 Residential collateralized mortgage obligations 2,088 (6) 4 13,985 (97) 10 16,073 (103) 14 SBA loan pool securities 2,164 (5) 3 1,750 (18) 3 3,914 (23) 6 Total securities available-for-sale $ 8,994 $ (48) 10 $ 15,735 $ (115) 13 $ 24,729 $ (163) 23 December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise securities: Residential mortgage-backed securities $ 5,401 $ (28) 5 $ 15,772 $ (123) 23 $ 21,173 $ (151) 28 Residential collateralized mortgage obligations 15,392 (52) 13 19,834 (205) 23 35,226 (257) 36 SBA loan pool securities 4,787 (38) 5 2,308 (23) 4 7,095 (61) 9 Total securities available-for-sale $ 25,580 $ (118) 23 $ 37,914 $ (351) 50 $ 63,494 $ (469) 73 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ — $ — — $ 6,842 $ (81) 7 $ 6,842 $ (81) 7 Total securities held-to-maturity $ — $ — — $ 6,842 $ (81) 7 $ 6,842 $ (81) 7 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 December 31, 2019 Real estate loans: Commercial property $ 813,409 $ 803,014 Residential property 223,923 235,046 SBA property 122,675 129,837 Construction 20,432 19,164 Total real estate loans 1,180,439 1,187,061 Commercial and industrial loans: Commercial term 98,936 103,380 Commercial lines of credit 96,339 111,768 SBA commercial term 22,650 25,332 SBA PPP 133,675 — Total commercial and industrial loans 351,600 240,480 Other consumer loans 21,550 23,290 Loans held-for-investment 1,553,589 1,450,831 Allowance for loan losses (20,248) (14,380) Net loans held-for-investment $ 1,533,341 $ 1,436,451 |
Schedule of Loan Modification Related to COVID-19 | The following table presents a summary of loans with modifications related to the COVID-19 pandemic by portfolio segment as of June 30, 2020: Modification Type ($ in thousands) Payment Deferment Interest Only Payment Total June 30, 2020 Real estate loans: Commercial property $ 369,716 $ 9,850 $ 379,566 Residential property 44,804 — 44,804 Commercial and industrial loans: Commercial term 53,277 4,882 58,159 Other consumer loans 1,507 — 1,507 Total $ 469,304 $ 14,732 $ 484,036 |
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, 2020 and 2019: ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total Balance at April 1, 2020 $ 11,948 $ 4,549 $ 177 $ 16,674 Charge-offs (111) (241) (63) (415) Recoveries on loans previously charged off — 114 20 134 Provision (reversal) for loan losses 3,708 (85) 232 3,855 Balance at June 30, 2020 $ 15,545 $ 4,337 $ 366 $ 20,248 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 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, 2020 and 2019: ($ in thousands) Real Estate Commercial and Industrial Other Consumer Total Balance at January 1, 2020 $ 9,854 $ 4,354 $ 172 $ 14,380 Charge-offs (138) (916) (139) (1,193) Recoveries on loans previously charged off 56 205 49 310 Provision for loan losses 5,773 694 284 6,751 Balance at June 30, 2020 $ 15,545 $ 4,337 $ 366 $ 20,248 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 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, 2020 Allowance for loan losses: Individually evaluated for impairment $ 1 $ — $ — $ 1 Collectively evaluated for impairment 15,544 4,337 366 20,247 Total $ 15,545 $ 4,337 $ 366 $ 20,248 Loans receivable: Individually evaluated for impairment $ 1,971 $ 2,398 $ — $ 4,369 Collectively evaluated for impairment 1,178,468 349,202 21,550 1,549,220 Total $ 1,180,439 $ 351,600 $ 21,550 $ 1,553,589 December 31, 2019 Allowance for loan losses: Individually evaluated for impairment $ 4 $ 15 $ — $ 19 Collectively evaluated for impairment 9,850 4,339 172 14,361 Total $ 9,854 $ 4,354 $ 172 $ 14,380 Loans receivable: Individually evaluated for impairment $ 2,158 $ 2,401 $ — $ 4,559 Collectively evaluated for impairment 1,184,903 238,079 23,290 1,446,272 Total $ 1,187,061 $ 240,480 $ 23,290 $ 1,450,831 |
Risk Categories for Loans by Portfolio Segment | The following table presents the risk categories for the recorded investment in loans by portfolio segment as of dates indicated: ($ in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2020 Real estate loans: Commercial property $ 813,072 $ — $ 337 $ — $ 813,409 Residential property 223,923 — — — 223,923 SBA property 119,566 71 3,038 — 122,675 Construction 20,432 — — — 20,432 Commercial and industrial loans: Commercial term 98,936 — — — 98,936 Commercial lines of credit 94,371 — 1,968 — 96,339 SBA commercial term 22,254 — 396 — 22,650 SBA PPP 133,675 — — — 133,675 Other consumer loans 21,480 — 70 — 21,550 Total $ 1,547,709 $ 71 $ 5,809 $ — $ 1,553,589 December 31, 2019 Real estate loans: Commercial property $ 802,373 $ — $ 641 $ — $ 803,014 Residential property 235,046 — — — 235,046 SBA property 124,135 72 5,630 — 129,837 Construction 17,453 1,711 — — 19,164 Commercial and industrial loans: Commercial term 103,380 — — — 103,380 Commercial lines of credit 109,880 — 1,888 — 111,768 SBA commercial term 24,677 — 655 — 25,332 Other consumer loans 23,242 — 48 — 23,290 Total $ 1,440,186 $ 1,783 $ 8,862 $ — $ 1,450,831 |
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, 2020 Real estate loans: Residential property $ 262 $ — $ 696 $ — $ 958 SBA property — — — 1,351 1,351 Commercial and industrial loans: Commercial lines of credit — — — 1,968 1,968 SBA commercial term — — — 381 381 Other consumer loans 49 113 — 70 232 Total $ 311 $ 113 $ 696 $ 3,770 $ 4,890 December 31, 2019 Real estate loans: Residential property $ — $ 697 $ — $ — $ 697 SBA property 794 — — 442 1,236 Commercial and industrial loans: Commercial lines of credit — — — 1,888 1,888 SBA commercial term — 189 287 159 635 Other consumer loans 99 39 — 48 186 Total $ 893 $ 925 $ 287 $ 2,537 $ 4,642 |
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, 2020 Real estate loans: Commercial property $ 337 $ 335 $ — $ — $ — SBA property 1,458 1,596 176 176 1 Commercial and industrial loans: Commercial term 26 26 — — — Commercial lines of credit 1,968 1,968 — — — SBA commercial term 404 446 — — — Total $ 4,193 $ 4,371 $ 176 $ 176 $ 1 December 31, 2019 Real estate loans: Commercial property $ 339 $ 338 $ — $ — $ — SBA property 1,699 1,828 120 154 4 Commercial and industrial loans: Commercial term 28 28 — — — Commercial lines of credit 1,888 1,888 — — — SBA commercial term 457 495 28 28 15 Total $ 4,411 $ 4,577 $ 148 $ 182 $ 19 The following table presents information on the recorded investment in impaired loans by portfolio segment for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 ($ in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Real estate loans: Commercial property $ 337 $ 6 $ — $ — SBA property 1,692 4 1,666 6 Commercial and industrial loans: Commercial term 26 1 52 1 Commercial lines of credit 2,074 — — — SBA commercial term 418 — 59 1 Total $ 4,547 $ 11 $ 1,777 $ 8 The following table presents information on the recorded investment in impaired loans by portfolio segment for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 ($ in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Real estate loans: Commercial property $ 338 $ 11 $ — $ — Residential property — — 76 — SBA property 1,728 9 1,507 12 Commercial and industrial loans: Commercial term 26 1 57 2 Commercial lines of credit 2,254 — — — SBA commercial term 480 1 150 2 Total $ 4,826 $ 22 $ 1,790 $ 16 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) 2020 2019 2020 2019 Interest income that would have been recognized had impaired loans performed in accordance with their original terms $ 67 $ 32 $ 146 $ 64 Less: interest income recognized on impaired loans on a cash basis (11) (8) (22) (16) Interest income foregone on impaired loans $ 56 $ 24 $ 124 $ 48 |
Modified TDRs by Portfolio Segment | The following table presents the composition of loans that were modified as TDRs by portfolio segment as of the dates indicated: June 30, 2020 December 31, 2019 ($ in thousands) Accruing Nonaccrual Total Accruing Nonaccrual Total Real estate loans: Commercial property $ 337 $ — $ 337 $ 339 $ — $ 339 SBA property 282 40 322 294 121 415 Commercial and industrial loans: Commercial term 26 — 26 28 — 28 SBA commercial term 24 — 24 39 — 39 Total $ 669 $ 40 $ 709 $ 700 $ 121 $ 821 The following table presents information on new loans that were modified as TDRs for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 ($ 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, 2020 and 2019: Six Months Ended June 30, 2020 2019 ($ 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 Commercial and industrial loans: SBA commercial term (1) 2 $ 37 $ 37 — $ — $ — Total 2 $ 37 $ 37 1 $ 131 $ 131 (1) Modified by deferral of principal payment. Six Months Ended June 30, 2020 2019 ($ 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 1 $ 26 — $ — Total 1 $ 26 — $ — |
Loans Held-for-Sale | The following table presents a summary of loans held-for-investment transferred to loans held-for-sale for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Real estate loans: Residential property $ — $ — $ 1,125 $ 303 Commercial and industrial loans: SBA commercial term — — 230 — Total $ — $ — $ 1,355 $ 303 The following table presents a summary of loans held-for-sale transferred to loans held-for-investment for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Real estate loans: Residential property $ 697 $ — $ 697 $ — Total $ 697 $ — $ 697 $ — The following table presents a composition of loans held-for-sale as of the dates indicated: ($ in thousands) June 30, 2020 December 31, 2019 Real estate loans: Residential property $ 3,267 $ 760 SBA property 835 150 Commercial and industrial loans: SBA commercial term — 1,065 Total $ 4,102 $ 1,975 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 as of the dates indicated: June 30, 2020 December 31, 2019 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Carrying amount $ 125 $ 5,554 $ 720 $ 171 $ 5,805 $ 822 Fair value $ 160 $ 7,136 $ 927 $ 200 $ 6,693 $ 976 Discount rate 11.25 % 13.25 % 12.75 % 11.25 % 13.25 % 12.75 % Prepayment speed 25.10 % 14.08 % 13.44 % 26.60 % 16.28 % 16.03 % Weighted average remaining life 31.3 years 21.1 years 6.8 years 24.2 years 21.3 years 7.0 years Underlying loans being serviced $ 25,005 $ 390,178 $ 78,817 $ 32,428 $ 384,007 $ 82,181 |
Schedule of Servicing Asset | The following table presents activity in servicing assets for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Balance at beginning of period $ 153 $ 5,448 $ 757 $ 221 $ 6,277 $ 987 Additions — 391 42 — 386 56 Amortization (28) (285) (79) (17) (569) (111) Balance at end of period $ 125 $ 5,554 $ 720 $ 204 $ 6,094 $ 932 The following table presents activity in servicing assets for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 ($ in thousands) Residential Property SBA Property SBA Commercial Term Residential Property SBA Property SBA Commercial Term Balance at beginning of period $ 171 $ 5,805 $ 822 $ 244 $ 6,349 $ 1,073 Additions — 513 84 — 670 107 Amortization (46) (764) (186) (40) (925) (248) Balance at end of period $ 125 $ 5,554 $ 720 $ 204 $ 6,094 $ 932 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Operating Lease Cost and Supplemental Information | The following table presents operating lease cost and supplemental cash flow information related to leases for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Operating lease cost (1) $ 576 $ 649 $ 1,267 $ 1,273 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 694 $ 669 1,427 1,319 Right of use assets obtained in exchange for lease obligations $ 17 $ 1,523 54 1,588 (1) Included in Occupancy and Equipment on the Consolidated Statements of Income. ($ in thousands) June 30, 2020 December 31, 2019 Operating leases: Operating lease assets $ 7,843 $ 8,991 Operating lease liabilities $ 8,758 $ 9,990 Weighted-average remaining lease term 4.6 years 5.0 years Weighted-average discount rate 2.72 % 2.81 % |
Maturities of Operating Lease Liabilities | The following table presets maturities of operating lease liabilities as of June 30, 2020: ($ in thousands) June 30, 2020 Maturities: 2020 $ 1,293 2021 2,303 2022 2,171 2023 1,828 2024 547 After 2024 1,351 Total lease payment 9,493 Imputed Interest (735) Present value of operating lease liabilities $ 8,758 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Shared-based Compensation Expense | The following table presents share-based compensation expense and the related tax benefits for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2020 2019 2020 2019 Share-based compensation expense related to: Stock options $ 160 $ 162 $ 316 $ 323 Restricted stock awards 38 — 76 — Total share-based compensation expense $ 198 $ 162 $ 392 $ 323 Related tax benefits $ 32 $ 11 $ 40 $ 22 The following table presents unrecognized share-based compensation expense as of June 30, 2020: ($ in thousands) Unrecognized Expense Weighted-Average Remaining Expected Recognition Period Unrecognized share-based compensation expense related to: Stock options $ 646 2.1 years Restricted stock awards 504 3.6 years Total unrecognized share-based compensation expense $ 1,150 2.7 years |
Share-based compensation, Stock Options | The following table represents stock option activity for the three months ended June 30, 2020: Three Months Ended June 30, 2020 ($ 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 733,992 $ 10.76 5.77 years $ (722) Exercised (7,849) $ 6.68 3.83 years Outstanding at end of period 726,143 $ 10.84 5.56 years $ (393) Exercisable at end of period 501,966 $ 9.75 5.00 years $ 277 The following table represents stock option activity for the six months ended June 30, 2020: Six Months Ended June 30, 2020 ($ 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 829,376 $ 10.32 5.80 years $ 5,776 Exercised (98,393) $ 6.43 3.42 years Forfeited (4,840) $ 10.33 5.58 years Outstanding at end of period 726,143 $ 10.84 5.56 years $ (393) Exercisable at end of period 501,966 $ 9.75 5.00 years $ 277 The following table represents information regarding unvested stock options for the three and six months ended June 30, 2020: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Shares Weighted-Average Exercise Price Per Share Number of Shares Weighted-Average Exercise Price Per Share Outstanding at beginning of period 224,177 $ 13.29 246,317 $ 13.31 Exercised — $ — (17,300) $ 14.47 Forfeited — $ — (4,840) $ 10.33 Outstanding at end of period 224,177 $ 13.29 224,177 $ 13.29 |
Summary of Nonvested Restricted Stock Awards | The following table represents RSAs activity for the three and six months ended June 30, 2020: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Shares Weighted-Average Grant Date Fair Value Per Share Number of Shares Weighted-Average Grant Date Fair Value Per Share Outstanding at beginning of period 38,400 $ 16.53 37,400 $ 16.60 Granted — $ — 1,000 $ 13.72 Outstanding at end of period 38,400 $ 16.53 38,400 $ 16.53 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computations of basic and diluted EPS for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands, except per share) 2020 2019 2020 2019 Basic earnings per share: Net income $ 3,367 $ 6,601 $ 6,939 $ 13,165 Less: income allocated to unvested restricted stock (8) — (17) — Net income allocated to common stock $ 3,359 $ 6,601 $ 6,922 $ 13,165 Weighted-average total common shares outstanding 15,375,805 16,017,089 15,459,639 16,008,325 Less: weighted-average unvested restricted stock (38,400) — (38,087) — Weighted-average common shares outstanding, basic 15,337,405 16,017,089 15,421,552 16,008,325 Basic earnings per share $ 0.22 $ 0.41 $ 0.45 $ 0.82 Diluted earnings per share: Net income allocated to common stock $ 3,359 $ 6,601 $ 6,922 $ 13,165 Weighted-average common shares outstanding, basic 15,337,405 16,017,089 15,421,552 16,008,325 Diluted effect of stock options 36,250 312,950 101,074 294,949 Weighted-average common shares outstanding, diluted 15,373,655 16,330,039 15,522,626 16,303,274 Diluted earnings per share $ 0.22 $ 0.40 $ 0.45 $ 0.81 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Outstanding Financial Commitments | As of June 30, 2020 and December 31, 2019, the Company had the following outstanding financial commitments whose contractual amount represents credit risk: ($ in thousands) June 30, 2020 December 31, 2019 Commitments to extend credit $ 194,431 $ 171,608 Standby letters of credit 4,300 3,300 Commercial letters of credit 416 292 Total $ 199,147 $ 175,200 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Regulated Operations [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, 2020 PCB Bancorp Common tier 1 capital (to risk-weighted assets) $ 224,570 15.83 % $ 63,828 4.5 % N/A N/A Total capital (to risk-weighted assets) 242,335 17.09 % 113,472 8.0 % N/A N/A Tier 1 capital (to risk-weighted assets) 224,570 15.83 % 85,104 6.0 % N/A N/A Tier 1 capital (to average assets) 224,570 11.49 % 78,175 4.0 % N/A N/A Pacific City Bank Common tier 1 capital (to risk-weighted assets) $ 220,907 15.58 % $ 63,825 4.5 % $ 92,192 6.5 % Total capital (to risk-weighted assets) 238,670 16.83 % 113,467 8.0 % 141,834 10.0 % Tier 1 capital (to risk-weighted assets) 220,907 15.58 % 85,100 6.0 % 113,467 8.0 % Tier 1 capital (to average assets) 220,907 11.30 % 78,172 4.0 % 97,715 5.0 % December 31, 2019 PCB Bancorp Common tier 1 capital (to risk-weighted assets) $ 226,069 15.87 % $ 64,087 4.5 % N/A N/A Total capital (to risk-weighted assets) 240,750 16.90 % 113,933 8.0 % N/A N/A Tier 1 capital (to risk-weighted assets) 226,069 15.87 % 85,450 6.0 % N/A N/A Tier 1 capital (to average assets) 226,069 13.23 % 68,355 4.0 % N/A N/A Pacific City Bank Common tier 1 capital (to risk-weighted assets) $ 223,241 15.68 % $ 64,084 4.5 % $ 92,566 6.5 % Total capital (to risk-weighted assets) 237,922 16.71 % 113,928 8.0 % 142,410 10.0 % Tier 1 capital (to risk-weighted assets) 223,241 15.68 % 85,446 6.0 % 113,928 8.0 % Tier 1 capital (to average assets) 223,241 13.06 % 68,354 4.0 % 85,442 5.0 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 Noninterest income in-scope of Topic 606 Service charges and fees on deposits: Monthly service fees $ 21 $ 29 $ 49 $ 57 Account analysis fees 193 242 428 469 Non-sufficient funds charges 42 73 142 159 Other deposit related fees 19 24 46 47 Total service charges and fees on deposits 275 368 665 732 Debit card fees 49 68 118 133 Wire transfer fees 126 126 254 235 Other service charges 40 58 92 108 Total $ 490 $ 620 $ 1,129 $ 1,208 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)branchoffice | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)loanbranchoffice | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Product Information [Line Items] | |||||
Number of loan production offices | office | 10 | 10 | |||
Reclassification of securities held-to-maturity to securities available-for-sale | $ 18,800 | $ 18,777 | $ 0 | ||
Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale | 787 | $ 0 | $ 787 | $ 0 | |
Modification term of loans modified due to COVID-19 | 6 months | ||||
Loans held-for-investment | 1,553,589 | $ 1,553,589 | $ 1,450,831 | ||
COVID-19 Loan Modification | |||||
Product Information [Line Items] | |||||
Aggregate carrying amount of loans modified due to COVID-19 | 484,036 | $ 484,036 | |||
Small Business Administration (SBA), CARES Act, Paycheck Protection Program | |||||
Product Information [Line Items] | |||||
SBA PP Loans Extended | loan | 1,551 | ||||
Loans held-for-investment | 133,700 | $ 133,700 | |||
Deferred loan origination fee | 5,600 | 5,600 | |||
Direct origination cost | $ 1,100 | $ 1,100 | |||
California | |||||
Product Information [Line Items] | |||||
Number of full-service branches | branch | 11 | 11 | |||
New Jersey | |||||
Product Information [Line Items] | |||||
Number of full-service branches | branch | 1 | 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, 2020 | Dec. 31, 2019 |
Securities available-for-sale: | ||
Total securities available-for-sale | $ 128,049 | $ 97,566 |
Residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 73,158 | 38,738 |
Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 35,646 | 43,894 |
Municipal bonds | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 6,124 | 782 |
Recurring | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 128,049 | 97,566 |
Total assets measured at fair value on a recurring basis | 128,049 | 97,566 |
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 | 73,158 | 38,738 |
Recurring | Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 35,646 | 43,894 |
Recurring | SBA loan pool securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 13,121 | 14,152 |
Recurring | Municipal bonds | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 6,124 | 782 |
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 | 128,049 | 97,566 |
Total assets measured at fair value on a recurring basis | 128,049 | 97,566 |
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 | 73,158 | 38,738 |
Recurring | Significant Other Observable Inputs (Level 2) | Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 35,646 | 43,894 |
Recurring | Significant Other Observable Inputs (Level 2) | SBA loan pool securities | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 13,121 | 14,152 |
Recurring | Significant Other Observable Inputs (Level 2) | Municipal bonds | ||
Securities available-for-sale: | ||
Total securities available-for-sale | 6,124 | 782 |
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, 2020 | Dec. 31, 2019 |
Impaired loans: | ||
Total impaired loans | $ 1,914 | $ 1,678 |
Total assets measured at fair value on a recurring basis | 1,914 | 1,678 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Impaired loans: | ||
Total impaired loans | 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 |
Significant Other Observable Inputs (Level 2) | ||
Impaired loans: | ||
Total impaired loans | 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 |
Significant Unobservable Inputs (Level 3) | ||
Impaired loans: | ||
Total impaired loans | 1,914 | 1,678 |
Total assets measured at fair value on a recurring basis | 1,914 | 1,678 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
SBA property | ||
Impaired loans: | ||
Total impaired loans | 261 | 116 |
SBA property | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Impaired loans: | ||
Total impaired loans | 0 | 0 |
SBA property | Significant Other Observable Inputs (Level 2) | ||
Impaired loans: | ||
Total impaired loans | 0 | 0 |
SBA property | Significant Unobservable Inputs (Level 3) | ||
Impaired loans: | ||
Total impaired loans | 261 | 116 |
Commercial lines of credit | ||
Impaired loans: | ||
Total impaired loans | 1,642 | 1,562 |
Commercial lines of credit | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Impaired loans: | ||
Total impaired loans | 0 | 0 |
Commercial lines of credit | Significant Other Observable Inputs (Level 2) | ||
Impaired loans: | ||
Total impaired loans | 0 | 0 |
Commercial lines of credit | Significant Unobservable Inputs (Level 3) | ||
Impaired loans: | ||
Total impaired loans | 1,642 | $ 1,562 |
SBA commercial term | ||
Impaired loans: | ||
Total impaired loans | 11 | |
SBA commercial term | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Impaired loans: | ||
Total impaired loans | 0 | |
SBA commercial term | Significant Other Observable Inputs (Level 2) | ||
Impaired loans: | ||
Total impaired loans | 0 | |
SBA commercial term | Significant Unobservable Inputs (Level 3) | ||
Impaired loans: | ||
Total impaired loans | $ 11 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Measurement Inputs (Details) - Nonrecurring $ in Thousands | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total impaired loans | $ 1,914 | $ 1,678 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total impaired loans | 1,914 | 1,678 |
SBA property | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total impaired loans | 261 | 116 |
SBA property | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total impaired loans | 261 | 116 |
Commercial lines of credit | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total impaired loans | 1,642 | 1,562 |
Commercial lines of credit | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total impaired loans | $ 1,642 | $ 1,562 |
Commercial lines of credit | Minimum | Sales comparison approach | Significant Unobservable Inputs (Level 3) | Adjustment for differences between the comparable estate sales | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impairment loans, measurement input | (0.14) | (0.04) |
Commercial lines of credit | Minimum | Income approach | Significant Unobservable Inputs (Level 3) | Adjustment for differences in net operating income expectations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impairment loans, measurement input | 0.11 | (0.04) |
Commercial lines of credit | Maximum | Sales comparison approach | Significant Unobservable Inputs (Level 3) | Adjustment for differences between the comparable estate sales | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impairment loans, measurement input | 0.48 | 0.26 |
Commercial lines of credit | Maximum | Income approach | Significant Unobservable Inputs (Level 3) | Adjustment for differences in net operating income expectations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impairment loans, measurement input | 0.38 | (0.11) |
Commercial lines of credit | Weighted Average | Sales comparison approach | Significant Unobservable Inputs (Level 3) | Adjustment for differences between the comparable estate sales | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impairment loans, measurement input | 0.1020 | 0.0086 |
Commercial lines of credit | Weighted Average | Income approach | Significant Unobservable Inputs (Level 3) | Adjustment for differences in net operating income expectations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impairment loans, measurement input | 0.1380 | (0.0620) |
Commercial lines of credit | Weighted Average | Income approach | Significant Unobservable Inputs (Level 3) | Capitalization rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impairment loans, measurement input | 0.050 | 0.05 |
SBA commercial term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total impaired loans | $ 11 | |
SBA commercial term | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total impaired loans | $ 11 |
Fair Value Measurements - Other
Fair Value Measurements - Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | $ (325) | $ (18) | $ (1,022) | $ (20) |
SBA property | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | (111) | (18) | (138) | (20) |
Commercial lines of credit | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | (214) | 0 | (720) | 0 |
SBA commercial term | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net losses recognized | $ 0 | $ 0 | $ (164) | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Securities available-for-sale | $ 128,049 | $ 97,566 |
Securities held-to-maturity | 0 | 20,154 |
Carrying Value | ||
Financial assets: | ||
Interest-bearing deposits in other financial institutions | 289,348 | 128,420 |
Securities available-for-sale | 128,049 | 97,566 |
Securities held-to-maturity | 20,154 | |
Loans held-for-sale | 4,102 | 1,975 |
Net loans held-for-investment | 1,533,341 | 1,436,451 |
FHLB and other restricted stock | 8,447 | 8,345 |
Accrued interest receivable | 9,498 | 5,136 |
Financial liabilities: | ||
Deposits | 1,646,930 | 1,479,307 |
FHLB advances | 130,000 | 20,000 |
Accrued interest payable | 3,886 | 6,004 |
Fair Value | ||
Financial assets: | ||
Interest-bearing deposits in other financial institutions | 289,348 | 128,420 |
Securities available-for-sale | 128,049 | 97,566 |
Securities held-to-maturity | 20,480 | |
Loans held-for-sale | 4,188 | 2,102 |
Net loans held-for-investment | 1,543,212 | 1,449,383 |
Accrued interest receivable | 9,498 | 5,136 |
Financial liabilities: | ||
Deposits | 1,673,664 | 1,468,540 |
FHLB advances | 130,442 | 20,092 |
Accrued interest payable | 3,886 | 6,004 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Interest-bearing deposits in other financial institutions | 289,348 | 128,420 |
Securities available-for-sale | 0 | 0 |
Securities held-to-maturity | 0 | |
Loans held-for-sale | 0 | 0 |
Net loans held-for-investment | 0 | 0 |
Accrued interest receivable | 10 | 78 |
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 | 128,049 | 97,566 |
Securities held-to-maturity | 20,480 | |
Loans held-for-sale | 4,188 | 2,102 |
Net loans held-for-investment | 0 | 0 |
Accrued interest receivable | 359 | 375 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB advances | 130,442 | 20,092 |
Accrued interest payable | 2 | 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 | |
Loans held-for-sale | 0 | 0 |
Net loans held-for-investment | 1,543,212 | 1,449,383 |
Accrued interest receivable | 9,129 | 4,683 |
Financial liabilities: | ||
Deposits | 1,673,664 | 1,468,540 |
FHLB advances | 0 | 0 |
Accrued interest payable | $ 3,884 | $ 6,003 |
Investment Securities - Summary
Investment Securities - Summary of Debt and Equity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Securities available-for-sale: | ||
Amortized Cost | $ 125,493 | $ 97,851 |
Gross Unrealized Gain | 2,719 | 184 |
Gross Unrealized Loss | (163) | (469) |
Securities available-for-sale, at fair value | 128,049 | 97,566 |
Securities held-to-maturity: | ||
Amortized Cost | 0 | 20,154 |
Gross Unrealized Gain | 407 | |
Gross Unrealized Loss | (81) | |
Fair Value | 20,480 | |
Pledged securities for collateral | 111,200 | 99,300 |
Residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Amortized Cost | 71,680 | 38,793 |
Gross Unrealized Gain | 1,515 | 96 |
Gross Unrealized Loss | (37) | (151) |
Securities available-for-sale, at fair value | 73,158 | 38,738 |
Securities held-to-maturity: | ||
Amortized Cost | 15,215 | |
Gross Unrealized Gain | 70 | |
Gross Unrealized Loss | (81) | |
Fair Value | 15,204 | |
Residential collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Amortized Cost | 35,367 | 44,115 |
Gross Unrealized Gain | 382 | 36 |
Gross Unrealized Loss | (103) | (257) |
Securities available-for-sale, at fair value | 35,646 | 43,894 |
SBA loan pool securities | ||
Securities available-for-sale: | ||
Amortized Cost | 12,769 | 14,179 |
Gross Unrealized Gain | 375 | 34 |
Gross Unrealized Loss | (23) | (61) |
Securities available-for-sale, at fair value | 13,121 | 14,152 |
Municipal bonds | ||
Securities available-for-sale: | ||
Amortized Cost | 5,677 | 764 |
Gross Unrealized Gain | 447 | 18 |
Gross Unrealized Loss | 0 | 0 |
Securities available-for-sale, at fair value | $ 6,124 | 782 |
Securities held-to-maturity: | ||
Amortized Cost | 4,939 | |
Gross Unrealized Gain | 337 | |
Gross Unrealized Loss | 0 | |
Fair Value | $ 5,276 |
Investment Securities - Summa_2
Investment Securities - Summary of Contractual Maturities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Securities available-for-sale: | |||||
Amortized Cost, Within one year | $ 101,000 | $ 101,000 | |||
Amortized Cost, One to five years | 2,209,000 | 2,209,000 | |||
Amortized Cost, Five to ten years | 1,038,000 | 1,038,000 | |||
Amortized Cost, Greater than ten years | 2,329,000 | 2,329,000 | |||
Amortized Cost, Mortgage-backed securities and collateralized mortgage obligations | 119,816,000 | 119,816,000 | |||
Amortized Cost | 125,493,000 | 125,493,000 | $ 97,851,000 | ||
Fair Value, Within one year | 101,000 | 101,000 | |||
Fair Value, One to five years | 2,308,000 | 2,308,000 | |||
Fair Value, Five to ten years | 1,076,000 | 1,076,000 | |||
Fair Value, Greater than ten years | 2,639,000 | 2,639,000 | |||
Fair Value, Mortgage-backed securities and collateralized mortgage obligations | 121,925,000 | 121,925,000 | |||
Fair Value | 128,049,000 | 128,049,000 | $ 97,566,000 | ||
Proceeds from sales and calls of securities available-for-sale | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities - Summa_3
Investment Securities - Summary of Individual Securities in Continuous Unrealized Loss Position (Details) | 6 Months Ended | ||
Jun. 30, 2020USD ($)security | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)security | |
Securities available-for-sale: | |||
Less Than 12 Months, Fair Value | $ 8,994,000 | $ 25,580,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ (48,000) | $ (118,000) | |
Less Than 12 Months, Number of Securities | security | 10 | 23 | |
12 months or Longer, Fair Value | $ 15,735,000 | $ 37,914,000 | |
12 months or Longer, Gross Unrealized Losses | $ (115,000) | $ (351,000) | |
12 months or Longer, Number of Securities | security | 13 | 50 | |
Total, Fair Value | $ 24,729,000 | $ 63,494,000 | |
Total, Gross Unrealized Losses | $ (163,000) | $ (469,000) | |
Total, Number of Securities | security | 23 | 73 | |
Securities held-to-maturity: | |||
Less Than 12 Months, Fair Value | $ 0 | ||
Less Than 12 Months, Gross Unrealized Losses | $ 0 | ||
Less Than 12 Months, Number of Securities | security | 0 | ||
12 Months or Longer, Fair Value | $ 6,842,000 | ||
12 Months or Longer, Gross Unrealized Losses | $ (81,000) | ||
12 Months or Longer, Number of Securities | security | 7 | ||
Total, Fair Value | $ 6,842,000 | ||
Total, Gross Unrealized Losses | $ (81,000) | ||
Total, Number of Securities | security | 7 | ||
OTTI Assessment | $ 0 | $ 0 | |
Residential mortgage-backed securities | |||
Securities available-for-sale: | |||
Less Than 12 Months, Fair Value | 4,742,000 | $ 5,401,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ (37,000) | $ (28,000) | |
Less Than 12 Months, Number of Securities | security | 3 | 5 | |
12 months or Longer, Fair Value | $ 0 | $ 15,772,000 | |
12 months or Longer, Gross Unrealized Losses | $ 0 | $ (123,000) | |
12 months or Longer, Number of Securities | security | 0 | 23 | |
Total, Fair Value | $ 4,742,000 | $ 21,173,000 | |
Total, Gross Unrealized Losses | $ (37,000) | $ (151,000) | |
Total, Number of Securities | security | 3 | 28 | |
Securities held-to-maturity: | |||
Less Than 12 Months, Fair Value | $ 0 | ||
Less Than 12 Months, Gross Unrealized Losses | $ 0 | ||
Less Than 12 Months, Number of Securities | security | 0 | ||
12 Months or Longer, Fair Value | $ 6,842,000 | ||
12 Months or Longer, Gross Unrealized Losses | $ (81,000) | ||
12 Months or Longer, Number of Securities | security | 7 | ||
Total, Fair Value | $ 6,842,000 | ||
Total, Gross Unrealized Losses | $ (81,000) | ||
Total, Number of Securities | security | 7 | ||
Residential collateralized mortgage obligations | |||
Securities available-for-sale: | |||
Less Than 12 Months, Fair Value | $ 2,088,000 | $ 15,392,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ (6,000) | $ (52,000) | |
Less Than 12 Months, Number of Securities | security | 4 | 13 | |
12 months or Longer, Fair Value | $ 13,985,000 | $ 19,834,000 | |
12 months or Longer, Gross Unrealized Losses | $ (97,000) | $ (205,000) | |
12 months or Longer, Number of Securities | security | 10 | 23 | |
Total, Fair Value | $ 16,073,000 | $ 35,226,000 | |
Total, Gross Unrealized Losses | $ (103,000) | $ (257,000) | |
Total, Number of Securities | security | 14 | 36 | |
SBA loan pool securities | |||
Securities available-for-sale: | |||
Less Than 12 Months, Fair Value | $ 2,164,000 | $ 4,787,000 | |
Less Than 12 Months, Gross Unrealized Losses | $ (5,000) | $ (38,000) | |
Less Than 12 Months, Number of Securities | security | 3 | 5 | |
12 months or Longer, Fair Value | $ 1,750,000 | $ 2,308,000 | |
12 months or Longer, Gross Unrealized Losses | $ (18,000) | $ (23,000) | |
12 months or Longer, Number of Securities | security | 3 | 4 | |
Total, Fair Value | $ 3,914,000 | $ 7,095,000 | |
Total, Gross Unrealized Losses | $ (23,000) | $ (61,000) | |
Total, Number of Securities | security | 6 | 9 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loans Held-For-Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | $ 1,553,589 | $ 1,450,831 | ||||
Allowance for loan losses | (20,248) | $ (16,674) | (14,380) | $ (13,328) | $ (13,137) | $ (13,167) |
Net loans held-for-investment | 1,533,341 | 1,436,451 | ||||
Related party loans outstanding | 3,900 | 3,800 | ||||
Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 1,180,439 | 1,187,061 | ||||
Allowance for loan losses | (15,545) | (11,948) | (9,854) | (9,711) | (9,324) | (9,104) |
Real Estate | Commercial property | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 813,409 | 803,014 | ||||
Real Estate | Residential property | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 223,923 | 235,046 | ||||
Real Estate | SBA property | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 122,675 | 129,837 | ||||
Real Estate | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 20,432 | 19,164 | ||||
Commercial and Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 351,600 | 240,480 | ||||
Allowance for loan losses | (4,337) | (4,549) | (4,354) | (3,426) | (3,608) | (3,877) |
Commercial and Industrial | Commercial term | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 98,936 | 103,380 | ||||
Commercial and Industrial | Commercial lines of credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 96,339 | 111,768 | ||||
Commercial and Industrial | SBA commercial term | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 22,650 | 25,332 | ||||
Commercial and Industrial | SBA PPP | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 133,675 | 0 | ||||
Other consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment | 21,550 | 23,290 | ||||
Allowance for loan losses | $ (366) | $ (177) | $ (172) | $ (191) | $ (205) | $ (186) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Loan Modification Due to COVID-19 (Details) - COVID-19 Loan Modification $ in Thousands | Jun. 30, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | $ 484,036 |
Payment Deferment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 469,304 |
Interest Only Payment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 14,732 |
Real Estate | Commercial property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 379,566 |
Real Estate | Commercial property | Payment Deferment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 369,716 |
Real Estate | Commercial property | Interest Only Payment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 9,850 |
Real Estate | Residential property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 44,804 |
Real Estate | Residential property | Payment Deferment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 44,804 |
Real Estate | Residential property | Interest Only Payment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 0 |
Commercial and Industrial | Commercial term | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 58,159 |
Commercial and Industrial | Commercial term | Payment Deferment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 53,277 |
Commercial and Industrial | Commercial term | Interest Only Payment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 4,882 |
Other Consumer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 1,507 |
Other Consumer | Payment Deferment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | 1,507 |
Other Consumer | Interest Only Payment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aggregate carrying amount of loans modified due to COVID-19 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | $ 16,674 | $ 13,137 | $ 14,380 | $ 13,167 | ||
Charge-offs | (415) | (252) | (1,193) | (298) | ||
Recoveries on loans previously charged off | 134 | 49 | 310 | 150 | ||
Provision (reversal) for loan losses | 3,855 | 394 | 6,751 | 309 | ||
Ending balance | 20,248 | 13,328 | 20,248 | 13,328 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | $ 1 | $ 19 | ||||
Collectively evaluated for impairment | 20,247 | 14,361 | ||||
Total | 16,674 | 13,328 | 14,380 | 13,167 | 20,248 | 14,380 |
Loans receivable: | ||||||
Individually evaluated for impairment | 4,369 | 4,559 | ||||
Collectively evaluated for impairment | 1,549,220 | 1,446,272 | ||||
Total | 1,553,589 | 1,450,831 | ||||
Real Estate | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 11,948 | 9,324 | 9,854 | 9,104 | ||
Charge-offs | (111) | (17) | (138) | (19) | ||
Recoveries on loans previously charged off | 0 | 0 | 56 | 4 | ||
Provision (reversal) for loan losses | 3,708 | 404 | 5,773 | 622 | ||
Ending balance | 15,545 | 9,711 | 15,545 | 9,711 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 1 | 4 | ||||
Collectively evaluated for impairment | 15,544 | 9,850 | ||||
Total | 15,545 | 9,711 | 15,545 | 9,711 | 15,545 | 9,854 |
Loans receivable: | ||||||
Individually evaluated for impairment | 1,971 | 2,158 | ||||
Collectively evaluated for impairment | 1,178,468 | 1,184,903 | ||||
Total | 1,180,439 | 1,187,061 | ||||
Commercial and Industrial | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 4,549 | 3,608 | 4,354 | 3,877 | ||
Charge-offs | (241) | (168) | (916) | (168) | ||
Recoveries on loans previously charged off | 114 | 33 | 205 | 74 | ||
Provision (reversal) for loan losses | (85) | (47) | 694 | (357) | ||
Ending balance | 4,337 | 3,426 | 4,337 | 3,426 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 15 | ||||
Collectively evaluated for impairment | 4,337 | 4,339 | ||||
Total | 4,337 | 3,426 | 4,337 | 3,877 | 4,337 | 4,354 |
Loans receivable: | ||||||
Individually evaluated for impairment | 2,398 | 2,401 | ||||
Collectively evaluated for impairment | 349,202 | 238,079 | ||||
Total | 351,600 | 240,480 | ||||
Other Consumer | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 177 | 205 | 172 | 186 | ||
Charge-offs | (63) | (67) | (139) | (111) | ||
Recoveries on loans previously charged off | 20 | 16 | 49 | 72 | ||
Provision (reversal) for loan losses | 232 | 37 | 284 | 44 | ||
Ending balance | 366 | 191 | 366 | 191 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 366 | 172 | ||||
Total | 366 | $ 191 | 172 | $ 186 | 366 | 172 |
Loans receivable: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 21,550 | 23,290 | ||||
Total | $ 21,550 | $ 23,290 | ||||
COVID-19 Pandemic | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Provision (reversal) for loan losses | $ 4,200 | $ 6,800 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | $ 1,553,589 | $ 1,450,831 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 1,547,709 | 1,440,186 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 71 | 1,783 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 5,809 | 8,862 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 1,180,439 | 1,187,061 |
Real Estate | Commercial property | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 813,409 | 803,014 |
Real Estate | Commercial property | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 813,072 | 802,373 |
Real Estate | Commercial property | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Commercial property | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 337 | 641 |
Real Estate | Commercial property | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Residential property | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 223,923 | 235,046 |
Real Estate | Residential property | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 223,923 | 235,046 |
Real Estate | Residential property | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Residential property | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Residential property | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | SBA property | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 122,675 | 129,837 |
Real Estate | SBA property | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 119,566 | 124,135 |
Real Estate | SBA property | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 71 | 72 |
Real Estate | SBA property | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 3,038 | 5,630 |
Real Estate | SBA property | Substandard | Loans guaranteed by US government agency | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 115 | 2,400 |
Real Estate | SBA property | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 20,432 | 19,164 |
Real Estate | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 20,432 | 17,453 |
Real Estate | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 1,711 |
Real Estate | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Real Estate | Construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 351,600 | 240,480 |
Commercial and Industrial | Commercial term | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 98,936 | 103,380 |
Commercial and Industrial | Commercial term | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 98,936 | 103,380 |
Commercial and Industrial | Commercial term | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Commercial term | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Commercial term | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Commercial lines of credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 96,339 | 111,768 |
Commercial and Industrial | Commercial lines of credit | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 94,371 | 109,880 |
Commercial and Industrial | Commercial lines of credit | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | Commercial lines of credit | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 1,968 | 1,888 |
Commercial and Industrial | Commercial lines of credit | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | SBA commercial term | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 22,650 | 25,332 |
Commercial and Industrial | SBA commercial term | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 22,254 | 24,677 |
Commercial and Industrial | SBA commercial term | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | SBA commercial term | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 396 | 655 |
Commercial and Industrial | SBA commercial term | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial and Industrial | SBA PPP | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 133,675 | 0 |
Commercial and Industrial | SBA PPP | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 133,675 | |
Commercial and Industrial | SBA PPP | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | |
Commercial and Industrial | SBA PPP | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | |
Commercial and Industrial | SBA PPP | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | |
Other consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 21,550 | 23,290 |
Other consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 21,480 | 23,242 |
Other consumer loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Other consumer loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | 70 | 48 |
Other consumer loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held-for-investment | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Aging of Past Due Accruing Loans and Nonaccrual Loans by Portfolio Segment (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 3,770,000 | $ 2,537,000 |
Total Past Due and Nonaccrual | 4,890,000 | 4,642,000 |
Loans guaranteed by US government agency | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 311,000 | 893,000 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 113,000 | 925,000 |
90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 696,000 | 287,000 |
Real Estate | Residential property | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 958,000 | 697,000 |
Real Estate | Residential property | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 262,000 | 0 |
Real Estate | Residential property | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 697,000 |
Real Estate | Residential property | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 696,000 | 0 |
Real Estate | SBA property | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 1,351,000 | 442,000 |
Total Past Due and Nonaccrual | 1,351,000 | 1,236,000 |
Real Estate | SBA property | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 794,000 |
Real Estate | SBA property | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Real Estate | SBA property | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Commercial and Industrial | Commercial lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 1,968,000 | 1,888,000 |
Total Past Due and Nonaccrual | 1,968,000 | 1,888,000 |
Commercial and Industrial | Commercial lines of credit | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Commercial and Industrial | Commercial lines of credit | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Commercial and Industrial | Commercial lines of credit | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Commercial and Industrial | SBA commercial term | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 381,000 | 159,000 |
Total Past Due and Nonaccrual | 381,000 | 635,000 |
Commercial and Industrial | SBA commercial term | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 0 |
Commercial and Industrial | SBA commercial term | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 189,000 |
Commercial and Industrial | SBA commercial term | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 0 | 287,000 |
Other consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 70,000 | 48,000 |
Total Past Due and Nonaccrual | 232,000 | 186,000 |
Other consumer loans | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 49,000 | 99,000 |
Other consumer loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | 113,000 | 39,000 |
Other consumer loans | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Still Accruing | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Impaired Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | $ 4,193 | $ 4,193 | $ 4,411 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 4,371 | 4,371 | 4,577 | ||
Impaired financing receivable, with an allowance recorded, recorded investment | 176 | 176 | 148 | ||
Impaired financing receivable, with an allowance recorded, unpaid principal balance | 176 | 176 | 182 | ||
Impaired financing receivable, with an allowance recorded, related allowance | 1 | 1 | 19 | ||
Average Recorded Investment | 4,547 | $ 1,777 | 4,826 | $ 1,790 | |
Interest Income | 11 | 8 | 22 | 16 | |
Interest Foregone on Impaired Loans [Abstract] | |||||
Interest income that would have been recognized had impaired loans performed in accordance with their original terms | 67 | 32 | 146 | 64 | |
Less: interest income recognized on impaired loans on a cash basis | (11) | (8) | (22) | (16) | |
Interest income foregone on impaired loans | 56 | 24 | 124 | 48 | |
Real Estate | Commercial property | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | 337 | 337 | 339 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 335 | 335 | 338 | ||
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 | 337 | 0 | 338 | 0 | |
Interest Income | 6 | 0 | 11 | 0 | |
Real Estate | Residential property | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 0 | 76 | |||
Interest Income | 0 | 0 | |||
Real Estate | SBA property | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | 1,458 | 1,458 | 1,699 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 1,596 | 1,596 | 1,828 | ||
Impaired financing receivable, with an allowance recorded, recorded investment | 176 | 176 | 120 | ||
Impaired financing receivable, with an allowance recorded, unpaid principal balance | 176 | 176 | 154 | ||
Impaired financing receivable, with an allowance recorded, related allowance | 1 | 1 | 4 | ||
Average Recorded Investment | 1,692 | 1,666 | 1,728 | 1,507 | |
Interest Income | 4 | 6 | 9 | 12 | |
Commercial and Industrial | Commercial term | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | 26 | 26 | 28 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 26 | 26 | 28 | ||
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 | 26 | 52 | 26 | 57 | |
Interest Income | 1 | 1 | 1 | 2 | |
Commercial and Industrial | Commercial lines of credit | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, with no allowance recorded, recorded investment | 1,968 | 1,968 | 1,888 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 1,968 | 1,968 | 1,888 | ||
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 | 2,074 | 0 | 2,254 | 0 | |
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 | 404 | 404 | 457 | ||
Impaired financing receivable, with no allowance recorded, unpaid principal balance | 446 | 446 | 495 | ||
Impaired financing receivable, with an allowance recorded, recorded investment | 0 | 0 | 28 | ||
Impaired financing receivable, with an allowance recorded, unpaid principal balance | 0 | 0 | 28 | ||
Impaired financing receivable, with an allowance recorded, related allowance | 0 | 0 | $ 15 | ||
Average Recorded Investment | 418 | 59 | 480 | 150 | |
Interest Income | $ 0 | $ 1 | $ 1 | $ 2 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Dec. 31, 2019USD ($) | |
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | $ 669,000 | $ 669,000 | $ 700,000 | ||
Nonaccrual | 40,000 | 40,000 | 121,000 | ||
Total | $ 709,000 | $ 709,000 | 821,000 | ||
Loans Modified as TDRs During the Period [Abstract] | |||||
Number of Loans | loan | 0 | 1 | 2 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 131,000 | $ 37,000 | $ 131,000 | |
Post-Modification Outstanding Recorded Investment | 0 | $ 131,000 | 37,000 | $ 131,000 | |
Number of commitments to lend to customers with outstanding loans that were classified as TDRs | 0 | 0 | 0 | ||
Allowance for loan losses | $ 0 | $ 0 | 4,000 | ||
Number of Loans | loan | 0 | 0 | 1 | 0 | |
Recorded Investment at Date of Default | $ 26,000 | $ 0 | |||
Real Estate | Commercial property | |||||
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | $ 337,000 | 337,000 | 339,000 | ||
Nonaccrual | 0 | 0 | 0 | ||
Total | 337,000 | 337,000 | 339,000 | ||
Real Estate | SBA property | |||||
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | 282,000 | 282,000 | 294,000 | ||
Nonaccrual | 40,000 | 40,000 | 121,000 | ||
Total | $ 322,000 | $ 322,000 | 415,000 | ||
Loans Modified as TDRs During the Period [Abstract] | |||||
Number of Loans | loan | 0 | 1 | 0 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 131,000 | $ 0 | $ 131,000 | |
Post-Modification Outstanding Recorded Investment | 0 | $ 131,000 | 0 | $ 131,000 | |
Commercial and Industrial | Commercial term | |||||
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | 26,000 | 26,000 | 28,000 | ||
Nonaccrual | 0 | 0 | 0 | ||
Total | 26,000 | 26,000 | 28,000 | ||
Commercial and Industrial | SBA commercial term | |||||
Loans Modified as TDRs as of Period End [Abstract] | |||||
Accruing | 24,000 | 24,000 | 39,000 | ||
Nonaccrual | 0 | 0 | 0 | ||
Total | $ 24,000 | $ 24,000 | $ 39,000 | ||
Loans Modified as TDRs During the Period [Abstract] | |||||
Number of Loans | loan | 2 | 0 | |||
Pre-Modification Outstanding Recorded Investment | $ 37,000 | $ 0 | |||
Post-Modification Outstanding Recorded Investment | $ 37,000 | $ 0 | |||
Number of Loans | loan | 1 | 0 | |||
Recorded Investment at Date of Default | $ 26,000 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Loans Held-For-Sale (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transfer of loans to held-for-sale | $ 0 | $ 0 | $ 1,355,000 | $ 303,000 | |
Transfer of loans to held-for-investment | 697,000 | 0 | 697,000 | 0 | |
Loans held-for-sale | 4,102,000 | 4,102,000 | $ 1,975,000 | ||
Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of loans held-for-investment | 0 | 0 | |||
Real Estate | Residential property | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transfer of loans to held-for-sale | 0 | 0 | 1,125,000 | 303,000 | |
Transfer of loans to held-for-investment | 697,000 | 0 | 697,000 | 0 | |
Purchase of loans held-for-investment | 0 | 0 | |||
Loans held-for-sale | 3,267,000 | 3,267,000 | 760,000 | ||
Real Estate | SBA property | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | 835,000 | 835,000 | 150,000 | ||
Commercial and Industrial | SBA commercial term | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transfer of loans to held-for-sale | 0 | $ 0 | 230,000 | $ 0 | |
Loans held-for-sale | $ 0 | $ 0 | $ 1,065,000 |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |||||
Total servicing assets | $ 6,399 | $ 6,399 | $ 6,798 | ||
Loans sold with servicing rights retained | 27,100 | $ 29,200 | 38,600 | $ 50,400 | |
Net gain on sale | 1,400 | 1,900 | 2,100 | 3,000 | |
Loan servicing income | $ 902 | $ 492 | $ 1,500 | $ 1,100 |
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, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Servicing Assets at Fair Value [Line Items] | ||||||
Carrying amount | $ 6,399 | $ 6,798 | ||||
Residential Property | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Carrying amount | 125 | 171 | $ 153 | $ 204 | $ 221 | $ 244 |
Fair value | $ 160 | $ 200 | ||||
Discount rate | 11.25% | 11.25% | ||||
Prepayment speed | 25.10% | 26.60% | ||||
Weighted average remaining life | 31 years 3 months 18 days | 24 years 2 months 12 days | ||||
Underlying loans being serviced | $ 25,005 | $ 32,428 | ||||
SBA Property | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Carrying amount | 5,554 | 5,805 | 5,448 | 6,094 | 6,277 | 6,349 |
Fair value | $ 7,136 | $ 6,693 | ||||
Discount rate | 13.25% | 13.25% | ||||
Prepayment speed | 14.08% | 16.28% | ||||
Weighted average remaining life | 21 years 1 month 6 days | 21 years 3 months 18 days | ||||
Underlying loans being serviced | $ 390,178 | $ 384,007 | ||||
SBA Commercial Term | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Carrying amount | 720 | 822 | $ 757 | $ 932 | $ 987 | $ 1,073 |
Fair value | $ 927 | $ 976 | ||||
Discount rate | 12.75% | 12.75% | ||||
Prepayment speed | 13.44% | 16.03% | ||||
Weighted average remaining life | 6 years 9 months 18 days | 7 years | ||||
Underlying loans being serviced | $ 78,817 | $ 82,181 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | $ 6,798 | |||
Amortization | (996) | $ (1,213) | ||
Balance at end of period | $ 6,399 | 6,399 | ||
Residential Property | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | 153 | $ 221 | 171 | 244 |
Additions | 0 | 0 | 0 | 0 |
Amortization | (28) | (17) | (46) | (40) |
Balance at end of period | 125 | 204 | 125 | 204 |
SBA Property | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | 5,448 | 6,277 | 5,805 | 6,349 |
Additions | 391 | 386 | 513 | 670 |
Amortization | (285) | (569) | (764) | (925) |
Balance at end of period | 5,554 | 6,094 | 5,554 | 6,094 |
SBA Commercial Term | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | 757 | 987 | 822 | 1,073 |
Additions | 42 | 56 | 84 | 107 |
Amortization | (79) | (111) | (186) | (248) |
Balance at end of period | $ 720 | $ 932 | $ 720 | $ 932 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($)Renew_Option | Dec. 31, 2018 | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | ||
Right-of-use lease assets | $ 7,843 | $ 8,991 | ||
Operating lease liabilities | $ 8,758 | $ 9,990 | ||
Number of options to renew | Renew_Option | 1 | |||
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, Period of Adoption, Adjustment | ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect adjustment to retained earnings | $ 53 |
Operating Leases - Cost and Sup
Operating Leases - Cost and Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating lease cost | $ 576 | $ 649 | $ 1,267 | $ 1,273 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | 694 | 669 | 1,427 | 1,319 | |
Right of use assets obtained in exchange for lease obligations | 17 | $ 1,523 | 54 | $ 1,588 | |
Operating leases: | |||||
Operating lease assets | 7,843 | 7,843 | $ 8,991 | ||
Operating lease liabilities | $ 8,758 | $ 8,758 | $ 9,990 | ||
Weighted-average remaining lease term | 4 years 7 months 6 days | 4 years 7 months 6 days | 5 years | ||
Weighted-average discount rate | 2.72% | 2.72% | 2.81% |
Operating Leases - Maturities o
Operating Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Maturities: | ||
2020 | $ 1,293 | |
2021 | 2,303 | |
2022 | 2,171 | |
2023 | 1,828 | |
2024 | 547 | |
After 2024 | 1,351 | |
Total lease payment | 9,493 | |
Imputed Interest | (735) | |
Present value of operating lease liabilities | $ 8,758 | $ 9,990 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances and Other Borrowings (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Borrowings from the FHLB | $ 130,000,000 | $ 20,000,000 |
FHLB, Fixed-rate borrowings | $ 130,000,000 | |
Weighted average interest rate | 0.51% | 1.92% |
Loans pledged to secure borrowings | $ 580,600,000 | $ 621,700,000 |
Additional borrowing capacity | 320,000,000 | 404,800,000 |
FHLB of San Francisco | ||
Debt Instrument [Line Items] | ||
Investment in capital stock of the FHLB | 8,300,000 | $ 8,200,000 |
FHLB Advances | ||
Debt Instrument [Line Items] | ||
Unused borrowing capacity | 40,300,000 | |
Loans pledged as collateral | 48,900,000 | |
Borrowings outstanding | 0 | |
Overnight federal funds lines, maximum borrowing capacity | $ 65,000,000 | |
FHLB Advances | Minimum | ||
Debt Instrument [Line Items] | ||
Maturity term | 6 months | 3 years |
FHLB Advances | Maximum | ||
Debt Instrument [Line Items] | ||
Maturity term | 5 years | 5 years |
Shareholders_ Equity - Narrativ
Shareholders’ Equity - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 23, 2020 | |
Equity [Abstract] | |||||
Authorized amount of shares under repurchase plan | $ 6,500,000 | ||||
Repurchase of common stock (in shares) | 428,474 | ||||
Repurchase of common stock (in dollars per share) | $ 15.14 | ||||
Repurchase of common stock | $ 6,500,000 | $ 974,000 | $ 6,487,000 | $ 974,000 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 25, 2013 | |
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) | 543,354 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award contractual term | 10 years | |
Stock options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Stock options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years | |
Restricted stock awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted stock awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 198 | $ 162 | $ 392 | $ 323 |
Related tax benefits | 32 | 11 | 40 | 22 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 160 | 162 | 316 | 323 |
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 38 | $ 0 | $ 76 | $ 0 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Share-based Compensation Expense (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options | $ 646 |
Restricted stock awards | 504 |
Total unrecognized share-based compensation expense | $ 1,150 |
Weighted-Average Remaining Expected Recognition Period | 2 years 8 months 12 days |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-Average Remaining Expected Recognition Period | 2 years 1 month 6 days |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-Average Remaining Expected Recognition Period | 3 years 7 months 6 days |
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, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 733,992 | 829,376 | 829,376 | |
Exercised (in shares) | (7,849) | (98,393) | ||
Forfeited (in shares) | (4,840) | |||
Outstanding at end of year (in shares) | 726,143 | 733,992 | 726,143 | 829,376 |
Exercisable (in shares) | 501,966 | 501,966 | ||
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) | $ 10.76 | $ 10.32 | $ 10.32 | |
Weighted-Average Exercise Price Per Share, Exercised (in dollars per share) | 6.68 | 6.43 | ||
Weighted Average Exercise Price Per Share, Forfeited (in dollars per share) | 10.33 | |||
Weighted-Average Exercise Price Per Share, Outstanding at ending of period (in dollars per share) | 10.84 | $ 10.76 | 10.84 | $ 10.32 |
Weighted-Average Exercise Price Per Share, Exercisable (in dollars per share) | $ 9.75 | $ 9.75 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted-Average Contractual Term, | 5 years 6 months 21 days | 5 years 9 months 7 days | 5 years 6 months 21 days | 5 years 9 months 18 days |
Weighted-Average Contractual Term, Exercised | 3 years 9 months 29 days | 3 years 5 months 1 day | ||
Weighted-Average Contractual Term, Forfeited | 5 years 6 months 29 days | |||
Weighted-Average Contractual Term, Exercisable | 5 years | 5 years | ||
Aggregate Intrinsic Value, Balance | $ (393) | $ (722) | $ (393) | $ 5,776 |
Aggregate Intrinsic Value, Exercisable | $ 277 | $ 277 |
Share-Based Compensation - Nonv
Share-Based Compensation - Nonvested Options (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Number of Shares | ||
Exercised (in shares) | (7,849) | (98,393) |
Weighted-Average Exercise Price Per Share | ||
Weighted-Average Exercise Price Per Share, Exercised (in dollars per share) | $ 6.68 | $ 6.43 |
Non-Vested Stock Options | ||
Number of Shares | ||
Outstanding at beginning of period (in shares) | 224,177 | 246,317 |
Exercised (in shares) | 0 | (17,300) |
Forfeited (in shares) | 0 | (4,840) |
Outstanding at end of period (in shares) | 224,177 | 224,177 |
Weighted-Average Exercise Price Per Share | ||
Weighted-Average Exercise Price Per Share, Outstanding (in dollars per share) | $ 13.29 | $ 13.31 |
Weighted-Average Exercise Price Per Share, Exercised (in dollars per share) | 0 | 14.47 |
Weighted -Average Exercise Price Per Share, Forfeited(in dollars per share) | 0 | 10.33 |
Weighted-Average Exercise Price Per Share, Outstanding (in dollars per share) | $ 13.29 | $ 13.29 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Awards (Details) - Restricted stock awards - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Number of Shares | ||
Outstanding at beginning of period (in shares) | 38,400 | 37,400 |
Granted (in shares) | 0 | 1,000 |
Outstanding at end of period (in shares) | 38,400 | 38,400 |
Weighted-Average Exercise Price Per Share | ||
Weighted-Average Exercise Price Per Share, Outstanding (in dollars per share) | $ 16.53 | $ 16.60 |
Weighted-Average Exercise Price Per Share, Granted (in dollars per share) | 0 | 13.72 |
Weighted-Average Exercise Price Per Share, Outstanding (in dollars per share) | $ 16.53 | $ 16.53 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 1,363,000 | $ 2,767,000 | $ 2,920,000 | $ 5,561,000 | |
Effective tax rate | 28.80% | 29.50% | 29.60% | 29.70% | |
Unrecognized tax benefits | $ 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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic earnings per share: | ||||
Net income | $ 3,367 | $ 6,601 | $ 6,939 | $ 13,165 |
Less: income allocated to unvested restricted stock | (8) | 0 | (17) | 0 |
Net income allocated to common stock | $ 3,359 | $ 6,601 | $ 6,922 | $ 13,165 |
Weighted-average total common shares outstanding (in shares) | 15,375,805 | 16,017,089 | 15,459,639 | 16,008,325 |
Weighted average unvested restricted stock (in shares) | (38,400) | 0 | (38,087) | 0 |
Weighted-average common shares outstanding (in shares) | 15,337,405 | 16,017,089 | 15,421,552 | 16,008,325 |
Basic earnings per share (in dollars per share) | $ 0.22 | $ 0.41 | $ 0.45 | $ 0.82 |
Diluted earnings per share: | ||||
Net income allocated to common stock | $ 3,359 | $ 6,601 | $ 6,922 | $ 13,165 |
Weighted-average common shares outstanding (in shares) | 15,337,405 | 16,017,089 | 15,421,552 | 16,008,325 |
Diluted effect of stock options (in shares) | 36,250 | 312,950 | 101,074 | 294,949 |
Diluted weighted-average common shares outstanding (in shares) | 15,373,655 | 16,330,039 | 15,522,626 | 16,303,274 |
Diluted earnings per share (in shares) | $ 0.22 | $ 0.40 | $ 0.45 | $ 0.81 |
Antidilutive securities earnings per share, amount | 660,859 | 15,000 | 163,000 | 15,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Outstanding financial commitments whose contractual amount represents credit risk | $ 199,147 | $ 175,200 |
SEC Schedule, 12-09, Reserve, Off-balance Sheet Activity | ||
Other Commitments [Line Items] | ||
Reserve for off-balance sheet items | 270 | 301 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Outstanding financial commitments whose contractual amount represents credit risk | 194,431 | 171,608 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Outstanding financial commitments whose contractual amount represents credit risk | 4,300 | 3,300 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Outstanding financial commitments whose contractual amount represents credit risk | $ 416 | $ 292 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
PCB Bancorp | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 9.09% | 8.90% |
Actual | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 224,570 | $ 226,069 |
Common tier 1 capital (to risk-weighted assets), ratio | 0.1583 | 0.1587 |
Total capital (to risk-weighted assets), amount | $ 242,335 | $ 240,750 |
Total capital (to risk-weighted assets), ratio | 0.1709 | 0.1690 |
Tier 1 capital (to risk-weighted assets), amount | $ 224,570 | $ 226,069 |
Tier 1 capital (to risk-weighted assets), ratio | 0.1583 | 0.1587 |
Tier 1 capital (to average assets), amount | $ 224,570 | $ 226,069 |
Tier 1 capital (to average assets), ratio | 0.1149 | 0.1323 |
Minimum Capital Requirement | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 63,828 | $ 64,087 |
Common tier 1 capital (to risk-weighted assets), ratio | 4.50% | 4.50% |
Total capital (to risk-weighted assets), amount | $ 113,472 | $ 113,933 |
Total capital (to risk-weighted assets), ratio | 0.080 | 0.080 |
Tier 1 capital (to risk-weighted assets), amount | $ 85,104 | $ 85,450 |
Tier 1 capital (to risk-weighted assets), ratio | 0.060 | 0.060 |
Tier 1 capital (to average assets), amount | $ 78,175 | $ 68,355 |
Tier 1 capital (to average assets), ratio | 0.040 | 0.040 |
Pacific City Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 8.83% | 8.71% |
Actual | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 220,907 | $ 223,241 |
Common tier 1 capital (to risk-weighted assets), ratio | 0.1558 | 0.1568 |
Total capital (to risk-weighted assets), amount | $ 238,670 | $ 237,922 |
Total capital (to risk-weighted assets), ratio | 0.1683 | 0.1671 |
Tier 1 capital (to risk-weighted assets), amount | $ 220,907 | $ 223,241 |
Tier 1 capital (to risk-weighted assets), ratio | 0.1558 | 0.1568 |
Tier 1 capital (to average assets), amount | $ 220,907 | $ 223,241 |
Tier 1 capital (to average assets), ratio | 0.1130 | 0.1306 |
Minimum Capital Requirement | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 63,825 | $ 64,084 |
Common tier 1 capital (to risk-weighted assets), ratio | 4.50% | 4.50% |
Total capital (to risk-weighted assets), amount | $ 113,467 | $ 113,928 |
Total capital (to risk-weighted assets), ratio | 0.080 | 0.080 |
Tier 1 capital (to risk-weighted assets), amount | $ 85,100 | $ 85,446 |
Tier 1 capital (to risk-weighted assets), ratio | 0.060 | 0.060 |
Tier 1 capital (to average assets), amount | $ 78,172 | $ 68,354 |
Tier 1 capital (to average assets), ratio | 0.040 | 0.040 |
To Be Well Capitalized Under Prompt Corrective Provisions | ||
Common tier 1 capital (to risk-weighted assets), amount | $ 92,192 | $ 92,566 |
Common tier 1 capital (to risk-weighted assets), ratio | 6.50% | 6.50% |
Total capital (to risk-weighted assets), amount | $ 141,834 | $ 142,410 |
Total capital (to risk-weighted assets), ratio | 0.100 | 0.100 |
Tier 1 capital (to risk-weighted assets), amount | $ 113,467 | $ 113,928 |
Tier 1 capital (to risk-weighted assets), ratio | 0.080 | 0.080 |
Tier 1 capital (to average assets), amount | $ 97,715 | $ 85,442 |
Tier 1 capital (to average assets), ratio | 0.050 | 0.050 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 490 | $ 620 | $ 1,129 | $ 1,208 |
Monthly service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 21 | 29 | 49 | 57 |
Account analysis fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 193 | 242 | 428 | 469 |
Non-sufficient funds charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 42 | 73 | 142 | 159 |
Other deposit related fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 19 | 24 | 46 | 47 |
Total service charges and fees on deposits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 275 | 368 | 665 | 732 |
Debit card fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 49 | 68 | 118 | 133 |
Wire transfer fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 126 | 126 | 254 | 235 |
Other service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 40 | $ 58 | $ 92 | $ 108 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Jul. 23, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Subsequent Event [Line Items] | |||||
Cash dividends declared on common stock (in dollars per share) | $ 0.10 | $ 0.06 | $ 0.20 | $ 0.11 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared on common stock (in dollars per share) | $ 0.10 |