Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 11, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | RBB | |
Entity Registrant Name | RBB BANCORP | |
Entity Central Index Key | 1,499,422 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,382,779 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 53,535 | $ 70,048 |
Federal funds sold and other cash equivalents | 25,000 | 80,000 |
Cash and cash equivalents | 78,535 | 150,048 |
Interest-earning deposits in other financial institutions | 600 | 600 |
Securities: | ||
Available for sale | 82,848 | 64,957 |
Held to maturity (fair value of $10,020 and $10,250 at March 31, 2018 and December 31, 2017, respectively) | 9,998 | 10,009 |
Mortgage loans held for sale | 183,391 | 125,847 |
Loans held for investment: | ||
Real estate | 871,073 | 839,230 |
Commercial | 391,614 | 410,812 |
Total loans | 1,262,687 | 1,250,042 |
Unaccreted discount on acquired loans | (2,410) | (2,762) |
Deferred loan costs (fees), net | 1,651 | 1,794 |
Total loans, gross | 1,261,928 | 1,249,074 |
Allowance for loan losses | (13,957) | (13,773) |
Net loans | 1,247,971 | 1,235,301 |
Premises and equipment | 6,687 | 6,583 |
Federal Home Loan Bank (FHLB) stock | 6,770 | 6,770 |
Net deferred tax assets | 6,460 | 6,086 |
Income tax receivable | 272 | 272 |
Other real estate owned (OREO) | 293 | 293 |
Cash surrender value of life insurance | 32,980 | 32,782 |
Goodwill | 29,940 | 29,940 |
Servicing assets | 5,979 | 5,957 |
Core deposit intangibles | 1,357 | 1,438 |
Accrued interest and other assets | 21,023 | 14,176 |
Total assets | 1,715,104 | 1,691,059 |
Deposits: | ||
Noninterest-bearing demand | 316,047 | 285,690 |
Savings, NOW and money market accounts | 399,892 | 411,663 |
Time deposits under $250,000 | 292,887 | 293,471 |
Time deposits $250,000 and over | 364,678 | 346,457 |
Total deposits | 1,373,504 | 1,337,281 |
Reserve for unfunded commitments | 575 | 282 |
Income tax payable | 1,563 | |
FHLB advances | 25,000 | |
Long-term debt | 49,564 | 49,528 |
Subordinated debentures | 3,447 | 3,424 |
Accrued interest and other liabilities | 10,629 | 10,368 |
Total liabilities | 1,439,282 | 1,425,883 |
Commitments and contingencies - Note 13 | ||
Shareholders' equity: | ||
Preferred Stock - 100,000,000 shares authorized, no par value; none outstanding | ||
Common Stock - 100,000,000 shares authorized, no par value; 16,288,928 shares issued and outstanding at March 31, 2018 and 15,908,893 shares at December 31,2017 | 210,595 | 205,927 |
Additional paid-in capital | 7,429 | 8,426 |
Retained earnings | 58,838 | 51,266 |
Accumulated other comprehensive income (loss) - net unrealized loss on securities available for sale, net of tax of $437 at March 31, 2018 and $186 at December 31, 2017 | (1,040) | (443) |
Total shareholders’ equity | 275,822 | 265,176 |
Total liabilities and shareholders’ equity | $ 1,715,104 | $ 1,691,059 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 10,020 | $ 10,250 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, par value | ||
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | ||
Common stock, shares issued | 16,288,928 | 15,908,893 |
Common stock, shares outstanding | 16,288,928 | 15,908,893 |
Accumulated other comprehensive income (loss) - net unrealized loss on securities available for sale, tax | $ 437 | $ 186 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 19,074 | $ 16,033 |
Interest on interest-earning deposits | 187 | 151 |
Interest on investment securities | 560 | 278 |
Dividend income on FHLB stock | 119 | 153 |
Interest on federal funds sold and other | 237 | 144 |
Total interest income | 20,177 | 16,759 |
Interest expense: | ||
Interest on savings deposits, now and money market accounts | 702 | 474 |
Interest on time deposits | 2,046 | 1,849 |
Interest on subordinated debentures and other | 913 | 905 |
Interest on other borrowed funds | 71 | 17 |
Total interest expense | 3,732 | 3,245 |
Net interest income | 16,445 | 13,514 |
Provision for credit losses | 184 | |
Net interest income after provision for credit losses | 16,261 | 13,514 |
Noninterest income: | ||
Service charges, fees and other | 466 | 460 |
Gain on sale of loans | 1,815 | 1,497 |
Loan servicing fees, net of amortization | (31) | 262 |
Recoveries on loans acquired in business combinations | 6 | 28 |
Increase in cash surrender value of life insurance | 199 | 185 |
Total noninterest income | 2,455 | 2,432 |
Noninterest expense: | ||
Salaries and employee benefits | 4,951 | 4,183 |
Occupancy and equipment expenses | 791 | 744 |
Data processing | 473 | 352 |
Legal and professional | 258 | (387) |
Office expenses | 171 | 154 |
Marketing and business promotion | 203 | 182 |
Insurance and regulatory assessments | 210 | 205 |
Amortization of intangibles | 81 | 94 |
OREO expenses | 7 | 14 |
Other expenses | 1,144 | 1,037 |
Total noninterest expense | 8,289 | 6,578 |
Income before income taxes | 10,427 | 9,368 |
Income tax expense | 1,580 | 3,875 |
Net income | $ 8,847 | $ 5,493 |
Net income per share | ||
Basic | $ 0.55 | $ 0.43 |
Diluted | 0.52 | 0.40 |
Cash dividends declared per common share | $ 0.08 | $ 0.30 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 8,847 | $ 5,493 |
Other comprehensive income (loss): | ||
Unrealized gains (losses) on securities available for sale, Change in unrealized gains (losses) | (853) | 115 |
Related income tax effect, Change in unrealized gains (losses) | 256 | (47) |
Total other comprehensive income | (597) | 68 |
Total comprehensive income | $ 8,250 | $ 5,561 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2016 | $ 181,585 | $ 142,651 | $ 8,417 | $ 30,784 | $ (267) |
Beginning balance, shares at Dec. 31, 2016 | 12,827,803 | ||||
Net income | 5,493 | 5,493 | |||
Stock-based compensation | 198 | 198 | |||
Cash dividend | (3,848) | (3,848) | |||
Other comprehensive income, net of taxes | 68 | 68 | |||
Ending balance at Mar. 31, 2017 | 183,496 | $ 142,651 | 8,615 | 32,429 | (199) |
Ending balance, shares at Mar. 31, 2017 | 12,827,803 | ||||
Beginning balance at Dec. 31, 2017 | $ 265,176 | $ 205,927 | 8,426 | 51,266 | (443) |
Beginning balance, shares at Dec. 31, 2017 | 15,908,893 | 15,908,893 | |||
Net income | $ 8,847 | 8,847 | |||
Stock-based compensation | 131 | 131 | |||
Cash dividend | (1,275) | (1,275) | |||
Stock options exercised | 3,540 | $ 4,668 | (1,128) | ||
Stock options exercised, shares | 380,035 | ||||
Other comprehensive income, net of taxes | (597) | (597) | |||
Ending balance at Mar. 31, 2018 | $ 275,822 | $ 210,595 | $ 7,429 | $ 58,838 | $ (1,040) |
Ending balance, shares at Mar. 31, 2018 | 16,288,928 | 16,288,928 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 8,847 | $ 5,493 |
Adjustments to reconcile net income to net cash from | ||
Depreciation and amortization of premises, equipment and intangibles | 295 | 338 |
Net (accretion) of securities, loans, deposits, and other | (88) | (1,020) |
Provision for credit losses | 184 | |
Stock-based compensation | 131 | 198 |
Gain on sale of loans | (1,815) | (1,497) |
Increase in cash surrender value of life insurance | (198) | (185) |
Loans originated and purchased for sale | (88,790) | (43,500) |
Proceeds from loans sold | 57,453 | 24,780 |
Other items | 2,478 | 2,950 |
Net cash used in operating activities | (21,503) | (12,443) |
Investing activities | ||
Decrease in interest-earning deposits | 245 | |
Securities available for sale: | ||
Purchases | (24,920) | (1,000) |
Maturities, prepayments and calls | 6,126 | 1,152 |
Purchase of FHLB stock and other equity securities, net | (4,549) | (5) |
Purchase of investment in qualified affordable housing projects | (2,500) | |
Net increase in loans | (37,377) | (30,712) |
Purchase of life insurance | (10,000) | |
Purchases of premises and equipment | (277) | (124) |
Net cash used in investing activities | (63,497) | (40,444) |
Financing activities | ||
Net increase in demand deposits and savings accounts | 18,586 | 70,270 |
Net increase in time deposits | 17,636 | 25,299 |
Net (decrease) increase in FHLB advances | (25,000) | 10,000 |
Cash dividends paid | (1,275) | (3,848) |
Exercise of stock options | 3,540 | |
Net cash from financing activities | 13,487 | 101,721 |
Net (decrease) increase in cash and cash equivalents | (71,513) | 48,834 |
Cash and cash equivalents at beginning of period | 150,048 | 118,713 |
Cash and cash equivalents at end of period | 78,535 | 167,547 |
Cash paid during the period: | ||
Interest paid | 2,873 | 2,456 |
Non-cash investing and financing activities: | ||
Transfer of loans to held for sale | 23,989 | 25,046 |
Net change in unrealized holding gain on securities available for sale | $ (853) | $ 115 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of RBB Bancorp and its wholly-owned subsidiaries Royal Business Bank (Bank) and RBB Asset Management Company (RAM), collectively referred to herein as "the Company", “we”, “our” or “us”. All significant intercompany accounts and transactions have been eliminated in consolidation. RBB Bancorp has no significant business activity other than its investments in Royal Business Bank and RAM. The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments consisting only of normal recurring adjustments. That, in the opinion of management, are necessary to reflect a fair presentation of financial results for the interim periods presented. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”). The Company accounts for its investments in its wholly owned special purpose TFC Statutory Trust under the equity method whereby the subsidiary's net earnings are recognized in the Company's statement of income. Use of Estimates in the Preparation of Financial Statements The preparation of 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements were compiled in accordance with the accounting policies set forth in Note 2 – Summary of Significant Policies in our consolidated financial statements included in our 2017 Annual Report. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and one year later for nonpublic business entities. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company plans to adopt ASU 2014-09 on January 1, 2019 utilizing the modified retrospective approach. Since the guidance does not apply to revenue associated with financial instruments such as loans and investments, which are accounted for under other provisions of GAAP, we do not expect it to impact interest income, our largest component of income. The Company will perform an overall assessment of revenue streams potentially affected by the ASU, including certain deposit related fees and interchange fees, to determine the impact this guidance will have on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The amendments in this Update are effective for interim and annual periods beginning after December 15, 2018, for public business entities and one year later for all other entities. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718.) In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instrument (Topic 326) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230) In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (Topic 805). In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities (Subtopic 310-20) In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation: Scope of codification Accounting (Topic 718) In July 2017, the FASB issued ASU 2017-13—Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments (SEC Update) In February 2018, the FASB issued ASU 2018-02 – Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | NOTE 2 - INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of securities available for sale and held to maturity at March 31, 2018 and December 31, 2017, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair March 31, 2018 Cost Gains Losses Value Available for sale Government agency securities $ 7,746 $ — $ (264 ) $ 7,482 Mortgage-backed securities Government sponsored agencies 38,843 — (1,171 ) 37,672 Corporate debt securities 37,736 145 (187 ) 37,694 $ 84,325 $ 145 $ (1,622 ) $ 82,848 Held to maturity Municipal taxable securities $ 4,294 $ 165 $ — $ 4,459 Municipal securities 5,704 4 (147 ) 5,561 $ 9,998 $ 169 $ (147 ) $ 10,020 December 31, 2017 Available for sale Government agency securities $ 7,968 $ — $ (152 ) $ 7,816 Mortgage-backed securities Government sponsored agencies 39,806 17 (608 ) 39,215 Corporate debt securities 17,813 161 (48 ) 17,926 $ 65,587 $ 178 $ (808 ) $ 64,957 Held to maturity Municipal taxable securities $ 4,295 $ 228 $ — $ 4,523 Municipal securities 5,714 32 (19 ) 5,727 $ 10,009 $ 260 $ (19 ) $ 10,250 One security with a fair value of $759,000 and $796,000 was pledged to secure a local agency deposit at March 31, 2018 and December 31, 2017, respectively. The amortized cost and fair value of the investment securities portfolio at March 31, 2018 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Due from one to five years $ 52,326 $ 51,530 $ 2,780 $ 2,865 Due from five to ten years 27,958 27,333 2,397 2,481 Due from ten years and greater 4,041 3,985 4,821 4,674 $ 84,325 $ 82,848 $ 9,998 $ 10,020 The following table summarizes available for sale securities with unrealized losses at March 31, 2018 and December 31, 2017, aggregated by major security type and length of time in a continuous unrealized loss position : Less than Twelve Months Twelve Months or More Total Unrealized Estimated Unrealized Estimated Unrealized Estimated (dollars in thousands) Losses Fair Value Losses Fair Value Losses Fair Value March 31, 2018 Government agency securities $ (112 ) $ 3,873 $ (152 ) $ 3,609 $ (264 ) $ 7,482 Mortgage-backed securities Government sponsored agencies (786 ) 25,484 (385 ) 11,852 (1,171 ) 37,336 Corporate debt securities (119 ) 9,660 (68 ) 1,937 (187 ) 11,597 Total available for sale $ (1,017 ) $ 39,017 $ (605 ) $ 17,398 $ (1,622 ) $ 56,415 Municipal securities $ (147 ) $ 4,674 $ — $ — $ (147 ) $ 4,674 Total held to maturity $ (147 ) $ 4,674 $ — $ — $ (147 ) $ 4,674 December 31, 2017 Government agency securities $ (32 ) $ 4,039 $ (120 ) $ 3,777 $ (152 ) $ 7,816 Mortgage-backed securities Government sponsored agencies (359 ) 23,609 (249 ) 11,887 (608 ) 35,496 Corporate debt securities (15 ) 5,035 (33 ) 1,972 (48 ) 7,007 Total available for sale $ (406 ) $ 32,683 $ (402 ) $ 17,636 $ (808 ) $ 50,319 Municipal securities $ (19 ) $ 2,232 $ — $ — $ (19 ) $ 2,232 Total held to maturity $ (19 ) $ 2,232 $ — $ — $ (19 ) $ 2,232 Unrealized losses have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell, it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach maturity. Management evaluates securities for other-than-temporary impairment (OTTI) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES The Company's loan portfolio consists primarily of loans to borrowers within Los Angeles, Ventura and Orange counties in California and Las Vegas (Clark County) in Nevada. Although the Company seeks to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses are among the principal industries in the Company's market area and, as a result, the Company's loan and collateral portfolios are, to some degree, concentrated in those industries. The following tables present the balance and activity related to the allowance for loan losses for held for investment loans by type for the periods presented. Three Months Ended March 31, 2018 2017 (dollars in thousands) Real Estate Commercial Unallocated Total Real Estate Commercial Unallocated Total Beginning balance $ 9,309 $ 4,044 $ 420 $ 13,773 $ 8,111 $ 6,051 $ — $ 14,162 Additions (reductions) to the allowance charged to expense 653 (118 ) (351 ) 184 (1,169 ) 1,169 — — Recoveries on loans charged-off — — — — — — — — Less loans charged-off — — — — — 24 — 24 Ending balance $ 9,962 $ 3,926 $ 69 $ 13,957 $ 6,942 $ 7,244 $ — $ 14,186 The following table presents the recorded investment in loans and impairment method as of and for the three months ended March 31, 2018 and March 31, 2017, and the activity in the allowance for loan losses for the year ended December 31, 2017, by portfolio segment: (dollars in thousands) As of and for the three months ended March 31, 2018 Real Estate Commercial Unallocated Total Reserves: Specific $ — $ — $ — $ — General 9,962 3,926 69 13,957 Loans acquired with deteriorated credit quality — — — — $ 9,962 $ 3,926 $ 69 $ 13,957 Loans evaluated for impairment: Individually $ 2,393 $ 2,072 $ — $ 4,465 Collectively 866,176 390,974 — 1,257,150 Loans acquired with deteriorated credit quality 313 — — 313 $ 868,882 $ 393,046 $ — $ 1,261,928 As of and for the three months ended March 31, 2017 Real Estate Commercial Unallocated Total Reserves: Specific $ — $ 3,559 $ — $ 3,559 General 6,942 3,685 — 10,627 Loans acquired with deteriorated credit quality — — — — $ 6,942 $ 7,244 $ — $ 14,186 Loans evaluated for impairment: Individually $ 2,550 $ 3,559 $ — $ 6,109 Collectively 771,870 360,847 — 1,132,717 Loans acquired with deteriorated credit quality 737 — — 737 $ 775,157 $ 364,406 $ — $ 1,139,563 December 31, 2017 Real Estate Commercial Unallocated Total Allowance for loan losses: Beginning of year $ 8,111 $ 6,051 $ — $ 14,162 Provisions 1,198 (2,671 ) 420 (1,053 ) Charge-offs — (83 ) — (83 ) Recoveries — 747 — 747 $ 9,309 $ 4,044 $ 420 $ 13,773 Reserves: Specific $ — $ — $ — $ — General 9,309 4,044 420 13,773 Loans acquired with deteriorated credit quality — — — — $ 9,309 $ 4,044 $ 420 $ 13,773 Loans evaluated for impairment: Individually $ 2,420 $ 155 $ — $ 2,575 Collectively 834,152 412,032 — 1,246,184 Loans acquired with deteriorated credit quality 315 — — 315 $ 836,887 $ 412,187 $ — $ 1,249,074 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis 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 loans not meeting the risk ratings defined below. Special Mention - Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Impaired - A loan is considered impaired, when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as troubled debt restructurings (TDRs) are considered impaired. The risk category of loans by class of loans was as follows at March 31, 2018 and December 31, 2017: (dollars in thousands) Special March 31, 2018 Pass Mention Substandard Impaired Total Real estate: Construction and land development $ 100,954 $ — $ — $ 286 $ 101,240 Commercial real estate 478,059 4,464 15,421 2,107 500,051 Single-family residential mortgages 267,591 — — — 267,591 Commercial: Other 277,678 195 520 — 278,393 SBA 108,711 — 3,870 2,072 114,653 $ 1,232,993 $ 4,659 $ 19,811 $ 4,465 $ 1,261,928 December 31, 2017 Real estate: Construction and land development $ 91,619 $ — $ — $ 289 $ 91,908 Commercial real estate 469,422 19,070 5,416 2,131 496,039 Single-family residential mortgages 248,940 — — — 248,940 Commercial: Other 277,518 2,360 888 — 280,766 SBA 126,759 1,778 2,729 155 131,421 $ 1,214,258 $ 23,208 $ 9,033 $ 2,575 $ 1,249,074 The following table presents the aging of the recorded investment in past-due loans at March 31, 2018 and December 31, 2017 by class of loans: (dollars in thousands) 30-59 60-89 90 Days Total Loans Not Non- Accrual March 31, 2018 Days Days Or More (2) Past Due Past Due Total Loans Loans (1) Real estate: Construction and land development $ — $ — $ — $ — $ 101,240 $ 101,240 $ — Commercial real estate — — — — 500,051 500,051 — Single-family residential mortgages 790 — — 790 266,801 267,591 — Commercial: Other 689 — — 689 277,704 278,393 — SBA 1,462 — 586 2,048 112,605 114,653 2,001 $ 2,941 $ — $ 586 $ 3,527 $ 1,258,401 $ 1,261,928 $ 2,001 Real estate: Single-family residential mortgages held for sale $ 696 $ — $ — $ 696 $ 182,695 $ 183,391 $ — December 31, 2017 Real estate: Construction and land development $ — $ — $ — $ — $ 91,908 $ 91,908 $ — Commercial real estate — — — — 496,039 496,039 — Single-family residential mortgages 1,175 338 — 1,513 247,427 248,940 — Commercial: Other — — — — 280,766 280,766 — SBA — 1,426 84 1,510 129,911 131,421 155 $ 1,175 $ 1,764 $ 84 $ 3,023 $ 1,246,051 $ 1,249,074 $ 155 Real estate: Single-family residential mortgages held for sale $ 697 $ — $ — $ 697 $ 125,150 $ 125,847 $ — (1) Included in total loans. (2) As of March 31, 2018, there were no loans over 90 days past due and still accruing. There was one loan over 90 days past due and still accruing in the amount of $71,000 as of December 31, 2017. Information relating to individually impaired loans presented by class of loans was as follows at March 31, 2018 and December 31, 2017: Unpaid (dollars in thousands) Principal Recorded Average Interest Related March 31, 2018 Balance Investment Balance Income Allowance With no related allowance recorded Real estate: Construction and land development $ 286 $ 286 $ 288 $ 6 $ — Commercial real estate 2,108 2,108 2,119 51 — Commercial - SBA 2,071 2,071 1,114 34 — Total $ 4,465 $ 4,465 $ 3,521 $ 91 $ — December 31, 2017 With no related allowance recorded Real estate: Construction and land development $ 289 $ 289 $ 296 $ 16 $ — Commercial real estate 2,131 2,131 2,192 297 — Commercial - SBA 155 155 78 15 — Total $ 2,575 $ 2,575 $ 2,566 $ 328 $ — No interest income was recognized on a cash basis for the three months ended March 31, 2018 and for the year ended December 31, 2017. The Company had five and four loans identified as TDRs at March 31, 2018 and December 31, 2017, respectively. There were no specific reserves on TDRs as of March 31, 2018 or December 31, 2017. There are no commitments to lend additional amounts at March 31, 2018 and December 31, 2017 to customers with outstanding loans that are classified as TDRs. As of March 31, 2018, the terms of one loan was modified as TDR. The modification of the terms generally included loans where The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2018. There were no TDRs for the year ended December 31, 2017. Pre- Post- Modification Modification (dollars in thousands) Number of Recorded Recorded March 31, 2018 Loans Investment Investment Commercial 1 $ 71 $ 71 The Company has purchased loans as part of its whole bank acquisitions, for which there was at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The outstanding balance and carrying amount of purchased credit-impaired loans at March 31, 2018 and December 31, 2017 were as follows: March 31, December 31, (dollars in thousands) 2018 2017 Outstanding balance $ 319 $ 322 Carrying amount $ 313 $ 315 For these purchased credit-impaired loans, the Company did not increase the allowance for loan losses during the three months ended March 31, 2018 or for the year ended December 31, 2017, as there were no significant reductions in the expected cash flows. Below is a summary of activity in the accretable yield on purchased credit-impaired loans for the three months ended March 31, 2018 and 2017: March 31, March 31, (dollars in thousands) 2018 2017 Beginning balance $ 122 $ 142 Accretion of income (1 ) (20 ) Ending balance $ 121 $ 122 |
Loan Servicing
Loan Servicing | 3 Months Ended |
Mar. 31, 2018 | |
Loan Servicing [Abstract] | |
Loan Servicing | NOTE 4 - LOAN SERVICING When mortgage and Small Business Administration (SBA) loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal. The amortization of mortgage servicing rights is netted against loan servicing fee income. The principal balances of mortgage and SBA loans serviced for others at March 31, 2018 and December 31, 2017 are as follows: March 31, December 31, (dollars in thousands) 2018 2017 Loans serviced for others: Mortgage loans $ 406,559 $ 384,437 SBA loans $ 174,282 $ 175,919 Activity for servicing assets follows: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Mortgage SBA Mortgage SBA (dollars in thousands) Loans Loans Loans Loans Servicing assets: Beginning of year $ 1,540 $ 4,417 $ 1,002 $ 2,702 Additions 315 484 — 724 Disposals (39 ) (425 ) — — Amortized to expense (155 ) (158 ) (86 ) (119 ) End of period $ 1,661 $ 4,318 $ 916 $ 3,307 The fair value of servicing assets for mortgage loans was $2,751,000 and $2,538,000 at March 31, 2018 and December 31, 2017, respectively. The fair value of servicing assets for SBA loans was $5,984,000 and $5,915,000 at March 31, 2018 and December 31, 2017, respectively. Servicing fees net of servicing asset amortization totaled $(31,000) and $262,000 for the three months ended March 31, 2018 and 2017, respectively. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | NOTE 5 - GOODWILL AND INTANGIBLES Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill resulting from whole bank acquisitions is not amortized, but tested for impairment at least annually. The Company has selected December 31 st Other intangible assets consist of core deposit intangible ("CDI") assets arising from whole bank acquisitions. CDI assets are amortized on an accelerated method over their estimated useful life of 8 to 10 years. CDI was recognized in the 2013 acquisition of Los Angeles National Bank and in the 2016 acquisition of TFC Holding Company. The unamortized balance at March 31, 2018 and December 31, 2017 was $1,357,000 and $1,438,000, respectively, for both Los Angeles National Bank and TFC Holding Company. CDI amortization expense was $81,000 and $94,000 for the three months ended March 31, 2018 and March 31, 2017, respectively, for both Los Angeles National Bank and TFC Holding Company. Estimated CDI amortization expense for future years is as follows (dollars in thousands): Year ending December 31: 2018 remaining $ 230 2019 274 2020 244 2021 172 2022 129 Thereafter 308 Total $ 1,357 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2018 | |
Maturities Of Time Deposits [Abstract] | |
Deposits | NOTE 6 - DEPOSITS At March 31, 2018, the scheduled maturities of time deposits are as follows: (dollars in thousands) One year $ 651,067 Two to three years 6,498 $ 657,565 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | NOTE 7 - LONG-TERM DEBT In March 2016, the Company issued $50 million of 6.5% fixed to floating rate subordinated debentures, due March 31, 2026. The interest rate is fixed through March 31, 2021 and floats at 3 month London Interbank Offered Rate (LIBOR) plus 516 basis points thereafter. The subordinated debt is considered Tier-2 capital at the Company. The Company allocated $35 million to the Bank as Tier-1 capital. At March 31, 2018 and December 31, 2017 the aggregate outstanding principal amount and unamortized debt issuance costs related to these subordinated debentures were as follows: March 31, December 31, (dollars in thousands) 2018 2017 Principal $ 50,000 $ 50,000 Unamortized debt issuance costs $ 436 $ 472 |
Subordinated debentures
Subordinated debentures | 3 Months Ended |
Mar. 31, 2018 | |
Debt Instruments [Abstract] | |
Subordinated Debentures | NOTE 8 - SUBORDINATED DEBENTURES The Company, through the acquisition of TFC Bancorp, acquired TFC Statutory Trust (Trust). The Trust contained a pooled private offering of 5,000 Trust preferred securities with a liquidation amount of $1,000 per security. TFC Bancorp issued $5,000,000 of subordinated debentures to the Trust in exchange for ownership of all of the common security of the Trust and the proceeds of the preferred securities sold by the Trust. The Company is not considered the primary beneficiary of this Trust (variable interest entity), therefore the Trust is not consolidated in the Company's financial statements, but rather the subordinated debentures are shown as a liability at market value as of the close of the acquisition which was $3,255,000. There was a $1,900,000 valuation reserve recorded to arrive at market value which is treated as a yield adjustment and is amortized over the life of the security. The amount of amortization expense recognized for the three months ended March 31, 2018 and 2017 was constant at $23,000. The Company also purchased an investment in the common stock of the Trust for $155,000 which is included in other assets. The Company may redeem the subordinated debentures, subject to prior approval by the Federal Reserve Bank on or after March 15, 2012, at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on March 15, 2037. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years. The Company has been paying interest on a quarterly basis. The subordinated debentures may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. The subordinated debentures have a variable rate of interest equal to the three month LIBOR plus 1.65%, which was 3.77% and 3.24% at March 31, 2018 and December 31, 2017, respectively. |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | NOTE 9 - BORROWING ARRANGEMENTS The Company has established secured and unsecured lines of credit. The Company may borrow funds from time to time on a term or overnight basis from the Federal Home Loan Bank of San Francisco (FHLB), the Federal Reserve Bank of San Francisco ("FRB") and other financial institutions as indicated below. Federal Funds Arrangements with Commercial Banks. At March 31, 2018, the Company may borrow on an unsecured basis, up to $20.0 million, $10.0 million, $12.0 million and $5.0 million overnight from Zions Bank, Wells Fargo Bank, First Tennessee National Bank, and Pacific Coast Bankers' Bank, respectively. Letter of Credit Arrangements. At March 31, 2018, the Company had an unsecured commercial letter of credit line with Wells Fargo Bank for $2.0 million. FRB Secured Line of Credit. The secured borrowing capacity of $13.8 million at March 31, 2018 is collateralized by loans pledged with a carrying value of $25.2 million. FHLB Secured Line of Credit. The secured borrowing capacity of $342.9 million at March 31, 2018 is collateralized by loans pledged with a carrying value of $392.2 million. There were no amounts outstanding under any of the arrangements above at March 31, 2018. At December 31, 2017, the Company had $25.0 million in short-term borrowings with the FHLB at 1.41% which was repaid on January 2, 2018. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10 - INCOME TAXES The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. During the three months ended March 31, 2018 and 2017, the Company recorded an income tax provision of $1.6 million and $3.9 million, respectively, reflecting and effective tax rate of 15.2% and 41.4% for the three months ended March 31, 2018 and 2017, respectively. |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | NOTE 11 - COMMITMENTS The Company leases several of its operating facilities under various noncancellable operating leases expiring at various dates through 2028. The Company is also responsible for common area maintenance, taxes and insurance at the various branch locations. Future minimum rent payments on the Company's leases were as follows at March 31, 2018: (dollars in thousands) Year ending December 31: 2018 remaining $ 1,338 2019 1,625 2020 1,396 2021 1,312 2022 1,089 Thereafter 4,117 $ 10,877 The minimum rent payments shown above are given for the existing lease obligation and are not a forecast of future rental expense. Total rental expense, recognized on a straight-line basis, was $437,000 and $381,000 for the three months ended March 31, 2018 and 2017, respectively. 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, unused lines of credit, commercial and similar letters of credit and standby letters of credit. Those instruments involve to varying degrees, elements of credit and interest rate risk not recognized in the Company's financial statements. The Company's exposure to loan loss in the event of nonperformance on these financial commitments is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for loans reflected in the financial statements. At March 31, 2018 and December 31, 2017, the Company had the following financial commitments whose contractual amount represents credit risk: March 31, December 31, (dollars in thousands) 2018 2017 Commitments to make loans $ 103,354 $ 101,960 Unused lines of credit 119,964 99,217 Commercial and similar letters of credit 4,700 3,013 Standby letters of credit 1,575 1,575 $ 229,593 $ 205,765 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. The Company is involved in various matters of litigation which have arisen in the ordinary course of business and accruals for estimates of potential losses have been provided when necessary and appropriate under GAAP. In the opinion of management, the disposition of such pending litigation will not have a material effect on the Company's financial statements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 12 - RELATED PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates were as follows: March 31, December 31, (dollars in thousands) 2018 2017 Beginning balance $ 2,300 $ 3,445 New loans and advances 300 2,200 Repayments (500 ) (3,345 ) Ending balance $ 2,100 $ 2,300 Loan commitments outstanding to executive officers, directors and their related interests with whom they are associated totaled approximately $1.8 million and $2.1 million at March 31, 2018 and December 31, 2017, respectively. Deposits from principal officers, directors, and their affiliates at March 31, 2018 and December 31, 2017 were $43.9 million and $43.8 million, respectively. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | NOTE 13 - STOCK-BASED COMPENSATION RBB Bancorp 2017 Omnibus Stock Incentive Plan. The 2017 Omnibus Stock Incentive Plan, or OSIP, was adopted by the Company’s board of directors on January 18, 2017 and approved by the Company’s shareholders at the Company’s annual meeting on May 23, 2017. The OSIP was designed to ensure continued availability of equity awards that will assist the Company in attracting and retaining competent managerial personnel and rewarding key employees, directors and other service providers for high levels of performance. Pursuant to the OSIP, the Company’s board of directors are allowed to grant awards to eligible persons in the form of qualified and non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights and other incentive awards. The Company has reserved up to 30% of issued and outstanding shares of common stock as of the date the Company adopted the 2017 OSIP, or 3,848,341 shares. This represents 24% of the issued and outstanding shares of the Company’s common stock as of March 31, 2018. As of March 31, 2018, there were 1,353,207 shares of common stock available for issuance under the OSIP. Awards vest, become exercisable and contain such other terms and conditions as determined by the board of directors and set forth in individual agreements with the employees receiving the awards. The OSIP enables the board of directors to set specific performance criteria that must be met before an award vests. The OSIP allows for acceleration of vesting and exercise privileges of grants if a participant’s termination of employment is due to a change in control, death or total disability. If a participant’s job is terminated for cause, then all awards expire at the date of termination. RBB Bancorp 2010 Stock Option Plan Under the 2010 Plan, the Company was permitted to grant awards to eligible persons in the form of qualified and non-qualified stock options. The Company reserved up to 30% of the issued and outstanding shares of common stock as of the date the Company adopted the 2010 Plan or 3,494,478 shares, for issuance under the 2010 Plan. After approval of the OSIP at the Company’s annual meeting on May 23, 2017, no additional grants will be made under the 2010 Plan. The 2010 Plan has terminated and options that were granted under that Plan have become subject to the OSIP. Awards that were granted under the 2010 Plan will remain exercisable pursuant to the terms and conditions set forth in individual award agreements, but such awards will be assumed and administered under the OSIP. The 2010 Plan award agreements allow for acceleration of exercise privileges of grants upon occurrence of a change in control of the Company. If a participant’s job is terminated for cause, then all unvested awards expire at the date of termination. The Company recognized stock-based compensation expense of $131,000 and recognized income tax benefits on that expense of $1.2 million for the three months ended March 31, 2018. The Company recognized stock-based compensation expense of $198,000 and recognized income tax benefits on that expense of $61,000 for the three months ended March 31, 2017. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2018 | |
Regulated Operations [Abstract] | |
Regulatory Matters | NOTE 14 - REGULATORY MATTERS Holding companies (with assets over $1 billion at the beginning of the year) and banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. In July 2013, the federal bank regulatory agencies approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks. The new rules became effective on January 1, 2015, with certain of the requirements phased-in over a multi-year schedule. Under the rules, minimum requirements increased for both the quantity and quality of capital held by the Bank. The rules include a new common equity Tier 1 ("CET1") capital to risk-weighted assets ratio with minimums for capital adequacy and prompt corrective action purposes of 4.5% and 6.5%, respectively. The minimum Tier 1 capital to risk-weighted assets ratio was raised from 4.0% to 6.0% under the capital adequacy framework and from 6.0% to 8.0% to be well-capitalized under the prompt corrective action framework. In addition, the rules introduced the concept of a "conservation buffer" of 2.5% applicable to the three capital adequacy risk-weighted asset ratios (CET1, Tier 1, and Total). The implementation of the capital conservation buffer began on January 1, 2016 at 0.625% and will be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). If the capital adequacy minimum ratios plus the phased-in conservation buffer amount exceed actual risk-weighted capital ratios, then dividends, share buybacks, and discretionary bonuses to executives could be limited in amount. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and CET1 capital to risk-weighted assets, and of Tier 1 capital to average assets. As permitted by the regulators for financial institutions that are not deemed to be “advanced approaches” institutions, the Company has elected to opt out of the Basel III requirement to include accumulated other comprehensive income in risk-based capital. Management believes, at March 31, 2018 and December 31, 2017, that the Bank meets all capital adequacy requirements to which it is subject. As defined in applicable regulations and set forth in the tables below, the Company and the Bank continue to exceed the regulatory capital minimum requirements and the Bank continues to exceed the "well capitalized" standards at the dates indicated: Amount of Capital Required To Be Well- Minimum Required Capitalized for Capital Under Prompt Adequacy Corrective Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2018: Tier 1 Leverage Ratio Consolidated $ 249,304 15.24% $ 65,439 4.00% $ 81,798 5.00% Bank $ 242,192 14.84% $ 65,283 4.00% $ 81,604 5.00% Common Equity Tier 1 Risk-Based Capital Ratio Consolidated $ 245,857 17.95% $ 61,620 4.50% $ 89,007 6.50% Bank $ 242,192 17.72% $ 61,502 4.50% $ 88,837 6.50% Tier 1 Risk-Based Capital Ratio Consolidated $ 249,304 18.21% $ 82,161 6.00% $ 109,547 8.00% Bank $ 242,192 17.72% $ 82,003 6.00% $ 109,338 8.00% Total Risk-Based Capital Ratio Consolidated $ 313,402 22.89% $ 109,547 8.00% $ 136,934 10.00% Bank $ 256,725 18.78% $ 109,338 8.00% $ 136,672 10.00% Amount of Capital Required To Be Well- Minimum Required Capitalized for Capital Under Prompt Adequacy Corrective Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017: Tier 1 Leverage Ratio Consolidated $ 238,219 14.35% $ 66,423 4.00% $ 83,029 5.00% Bank $ 232,765 14.50% $ 64,214 4.00% $ 80,267 5.00% Common Equity Tier 1 Risk-Based Capital Ratio Consolidated $ 234,794 17.54% $ 60,233 4.50% $ 87,003 6.50% Bank $ 232,765 17.42% $ 60,122 4.50% $ 86,843 6.50% Tier 1 Risk-Based Capital Ratio Consolidated $ 238,219 17.80% $ 80,311 6.00% $ 107,081 8.00% Bank $ 232,765 17.42% $ 80,163 6.00% $ 106,884 8.00% Total Risk-Based Capital Ratio Consolidated $ 301,802 22.55% $ 107,081 8.00% $ 133,851 10.00% Bank $ 246,820 18.47% $ 106,884 8.00% $ 133,605 10.00% The California Financial Code generally acts to prohibit banks from making 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 by the bank's shareholders during the same period. The California General Corporation Law generally acts to prohibit companies from paying dividends on common stock unless its retained earnings, immediately prior to the dividend payment, equals or exceeds the amount of the dividend. If a company fails this test, then it may still pay dividends if after giving effect to the dividend the company's assets are at least 125% of its liabilities. Additionally, the Federal Reserve Bank has issued guidance which requires that they be consulted before payment of a dividend if a bank holding company does not have earnings over the prior four quarters of at least equal to the dividend to be paid, plus other holding company obligations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 15 - FAIR VALUE MEASUREMENTS The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: 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). Other Real Estate Owned Appraisals for other real estate owned are performed by state licensed appraisers (for commercial properties) or state certified appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. When a Notice of Default is recorded, an appraisal report is ordered. Once received, a member of the credit administration department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison to independent data sources such as recent market data or industry wide-statistics for residential appraisals. Commercial appraisals are sent to an independent third party to review. The Company also compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal values on any remaining other real estate owned to arrive at fair value. If the existing appraisal is older than twelve months a new appraisal report is ordered. No significant adjustments to appraised values have been made as a result of this comparison process as of March 31, 2018. The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value at March 31, 2018 and December 31, 2017: (dollars in thousands) Fair Value Measurements Using: March 31, 2018 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ 7,482 $ 7,482 Mortgage-backed securities Government sponsored agencies 37,672 37,672 Corporate debt securities 37,694 37,694 $ — $ 82,848 $ — $ 82,848 On a non-recurring basis: Other real estate owned $ — $ — $ 293 $ 293 December 31, 2017 Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ 7,816 7,816 Mortgage-backed securities Government sponsored agencies 39,215 39,215 Corporate debt securities 17,926 17,926 $ — $ 64,957 $ — $ 64,957 On a non-recurring basis: Other real estate owned $ — $ — $ 293 $ 293 No write-downs to OREO were recorded in for the three months ended March 31, 2018 or for the year ended December 31, 2017. Quantitative information about the Company's non-recurring Level 3 fair value measurements at March 31, 2018 and December 31, 2017 is as follows: Weighted- (dollars in thousands) Fair Value Valuation Unobservable Adjustment Average March 31, 2018 Amount Technique Input Range Adjustment Other real estate owned $ 293 Third Party Management Adjustments 21% 21% Appraisals to Reflect Current Conditions and Selling Costs December 31, 2017 Other real estate owned $ 293 Third Party Management Adjustments 21% 21% Appraisals to Reflect Current Conditions and Selling Costs |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 16 - 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 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. Fair value measurement and disclosure standards also establish a framework for measuring fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (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. Further, the standards establish a fair value hierarchy that encourages an entity to maximize the use of observable inputs and limit the use of unobservable inputs when measuring fair values. The standards describe three levels of inputs that may be used to measure fair values: • Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. • Level 3: Significant unobservable inputs that reflect a company's own assumptions about the factors that market participants would likely consider in pricing an asset or liability. Fair value estimates are made at a specific point in time based on relevant market data and information about the financial instruments. The estimates incorporate our assumptions with regard to the impact of prepayments on future cash flows and credit quality adjustments based on risk characteristics of various financial instruments, among other things. The estimates are subjective and involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly alter the fair values presented. The fair value hierarchy level and estimated fair value of significant financial instruments at March 31, 2018 and December 31, 2017 are summarized as follows: March 31, December 31, 2018 2017 Fair Value Carrying Fair Carrying Fair (dollars in thousands) Hierarchy Value Value Value Value Financial Assets: Cash and due from banks Level 1 $ 53,535 $ 53,535 $ 70,048 $ 70,048 Federal funds sold and other cash equivalents Level 1 25,000 25,000 80,000 80,000 Interest-earning deposits in other financial institutions Level 1 600 600 600 600 Investment securities - AFS Level 2 82,848 82,848 64,957 64,957 Investment securities - HTM Level 2 9,998 10,020 10,009 10,250 Mortgage loans held for sale Level 1 183,391 128,491 125,847 128,972 Loans, net Level 3 1,247,971 1,288,740 1,235,301 1,236,289 Financial Liabilities: Deposits Level 2 1,373,504 1,371,213 $ 1,337,281 $ 1,336,353 FHLB advances Level 2 — — 25,000 25,000 Long-term debt Level 2 49,564 41,950 49,528 44,319 Subordinated debentures Level 3 3,447 3,625 3,424 3,348 |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (EPS) | NOTE 17 - EARNINGS PER SHARE (EPS) The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute EPS: Three Months Ended March 31 2018 2017 (dollars in thousands except per share amounts) Income Shares Income Shares Net income as reported $ 8,847 $ 5,493 Shares outstanding 16,288,928 12,827,803 Impact of weighting shares (206,033 ) — Used in basic EPS 8,847 16,082,895 5,493 12,827,803 Dilutive effect of outstanding Stock options 1,079,425 897,918 Used in dilutive EPS $ 8,847 17,162,320 $ 5,493 13,725,721 Basic earnings per common share $ 0.55 $ 0.43 Diluted earnings per common share $ 0.52 $ 0.40 |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Qualified Affordable Housing Project Investments | NOTE 18 - QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS The Company began investing in qualified housing projects in 2016. At March 31, 2018 and December 31, 2017, the balance of the investment for qualified affordable housing projects was $8,031,000 and $5,670,000, respectively. This balance is reflected in the accrued interest and other assets line on the consolidated balance sheets. Total unfunded commitments related to the investments in qualified housing projects totaled $6,264,000 and $4,194,000 at March 31, 2018 and December 31, 2017, respectively. The Company expects to fulfill these commitments during the years ending 2027 and 2028. For the three months ended March 31, 2018 and 2017, the Company recognized amortization expense of $139,000 and $22,000, respectively, which was included within income tax expense on the consolidated statements of income. |
Recent Developments
Recent Developments | 3 Months Ended |
Mar. 31, 2018 | |
Recent Developments [Abstract] | |
Recent Developments | NOTE 19 - RECENT DEVELOPMENTS On April 18, 2018, RBB Bancorp declared a cash dividend of $0.09 per share for the first quarter of 2018. The dividend is payable on May 15, 2018 to common shareholders of record as of April 30, 2018. On April 23, 2018, RBB Bancorp and First American International Corporation, New York, New York (FAIC) entered into an Agreement and Plan of Merger (the Merger Agreement), providing for the merger of FAIC with and into RBB Bancorp, with RBB Bancorp as the surviving corporation (the Merger). Immediately following the effectiveness of the Merger, First American International Bank, a wholly-owned subsidiary of FAIC (FAIB) will be merged with and into the Bank, with the Bank being the surviving bank in the merger (the Bank Merger). Pursuant to the terms and subject to the conditions of the Merger Agreement, at the effective time of the Merger (the Effective Time), each share of the common stock of FAIC will be convertible into the right to receive (i) 1.3472 shares of the common stock, no par value per share, of RBB Bancorp and (ii) $15.30 in cash (such consideration set forth in clauses (i) and (ii), the Per Share Merger Consideration). Holders of in-the-money FAIC stock options (FAIC Stock Options) will receive an amount equal to (1) $51.00 minus (2) the exercise price per share with respect to the corresponding FAIC Stock Option. Pursuant to the terms of the Merger Agreement, RBB Bancorp and FAIC have agreed that FAIC will repurchase its currently outstanding $17 million of preferred stock held by the U.S. Department of the Treasury and issued under the Troubled Asset Relief Program prior to completion of the Merger (the TARP Redemption) and that the Bank will assist in financing such repurchase, if necessary. Royal Business Bank has committed to lend FAIC $17 million for up to one month, if necessary. The Merger is expected to close in the second half of 2018, subject to the satisfaction of customary closing conditions, including regulatory approvals and approval of FAIC’s shareholders. Each director of FAIC has entered into an agreement with RBB Bancorp pursuant to which they have committed to vote their shares of FAIC common stock in favor of the proposed acquisition. |
Basis of Presentation and Sum27
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of RBB Bancorp and its wholly-owned subsidiaries Royal Business Bank (Bank) and RBB Asset Management Company (RAM), collectively referred to herein as "the Company", “we”, “our” or “us”. All significant intercompany accounts and transactions have been eliminated in consolidation. RBB Bancorp has no significant business activity other than its investments in Royal Business Bank and RAM. The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments consisting only of normal recurring adjustments. That, in the opinion of management, are necessary to reflect a fair presentation of financial results for the interim periods presented. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”). The Company accounts for its investments in its wholly owned special purpose TFC Statutory Trust under the equity method whereby the subsidiary's net earnings are recognized in the Company's statement of income. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements were compiled in accordance with the accounting policies set forth in Note 2 – Summary of Significant Policies in our consolidated financial statements included in our 2017 Annual Report. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and one year later for nonpublic business entities. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company plans to adopt ASU 2014-09 on January 1, 2019 utilizing the modified retrospective approach. Since the guidance does not apply to revenue associated with financial instruments such as loans and investments, which are accounted for under other provisions of GAAP, we do not expect it to impact interest income, our largest component of income. The Company will perform an overall assessment of revenue streams potentially affected by the ASU, including certain deposit related fees and interchange fees, to determine the impact this guidance will have on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The amendments in this Update are effective for interim and annual periods beginning after December 15, 2018, for public business entities and one year later for all other entities. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718.) In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instrument (Topic 326) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230) In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (Topic 805). In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities (Subtopic 310-20) In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation: Scope of codification Accounting (Topic 718) In July 2017, the FASB issued ASU 2017-13—Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments (SEC Update) In February 2018, the FASB issued ASU 2018-02 – Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity | The following table summarizes the amortized cost and fair value of securities available for sale and held to maturity at March 31, 2018 and December 31, 2017, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair March 31, 2018 Cost Gains Losses Value Available for sale Government agency securities $ 7,746 $ — $ (264 ) $ 7,482 Mortgage-backed securities Government sponsored agencies 38,843 — (1,171 ) 37,672 Corporate debt securities 37,736 145 (187 ) 37,694 $ 84,325 $ 145 $ (1,622 ) $ 82,848 Held to maturity Municipal taxable securities $ 4,294 $ 165 $ — $ 4,459 Municipal securities 5,704 4 (147 ) 5,561 $ 9,998 $ 169 $ (147 ) $ 10,020 December 31, 2017 Available for sale Government agency securities $ 7,968 $ — $ (152 ) $ 7,816 Mortgage-backed securities Government sponsored agencies 39,806 17 (608 ) 39,215 Corporate debt securities 17,813 161 (48 ) 17,926 $ 65,587 $ 178 $ (808 ) $ 64,957 Held to maturity Municipal taxable securities $ 4,295 $ 228 $ — $ 4,523 Municipal securities 5,714 32 (19 ) 5,727 $ 10,009 $ 260 $ (19 ) $ 10,250 |
Amortized Cost and Fair Value of Investment Securities Portfolio Expected Maturity | The amortized cost and fair value of the investment securities portfolio at March 31, 2018 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Due from one to five years $ 52,326 $ 51,530 $ 2,780 $ 2,865 Due from five to ten years 27,958 27,333 2,397 2,481 Due from ten years and greater 4,041 3,985 4,821 4,674 $ 84,325 $ 82,848 $ 9,998 $ 10,020 |
Summary of Available for Sale Securities With Unrealized Losses | The following table summarizes available for sale securities with unrealized losses at March 31, 2018 and December 31, 2017, aggregated by major security type and length of time in a continuous unrealized loss position : Less than Twelve Months Twelve Months or More Total Unrealized Estimated Unrealized Estimated Unrealized Estimated (dollars in thousands) Losses Fair Value Losses Fair Value Losses Fair Value March 31, 2018 Government agency securities $ (112 ) $ 3,873 $ (152 ) $ 3,609 $ (264 ) $ 7,482 Mortgage-backed securities Government sponsored agencies (786 ) 25,484 (385 ) 11,852 (1,171 ) 37,336 Corporate debt securities (119 ) 9,660 (68 ) 1,937 (187 ) 11,597 Total available for sale $ (1,017 ) $ 39,017 $ (605 ) $ 17,398 $ (1,622 ) $ 56,415 Municipal securities $ (147 ) $ 4,674 $ — $ — $ (147 ) $ 4,674 Total held to maturity $ (147 ) $ 4,674 $ — $ — $ (147 ) $ 4,674 December 31, 2017 Government agency securities $ (32 ) $ 4,039 $ (120 ) $ 3,777 $ (152 ) $ 7,816 Mortgage-backed securities Government sponsored agencies (359 ) 23,609 (249 ) 11,887 (608 ) 35,496 Corporate debt securities (15 ) 5,035 (33 ) 1,972 (48 ) 7,007 Total available for sale $ (406 ) $ 32,683 $ (402 ) $ 17,636 $ (808 ) $ 50,319 Municipal securities $ (19 ) $ 2,232 $ — $ — $ (19 ) $ 2,232 Total held to maturity $ (19 ) $ 2,232 $ — $ — $ (19 ) $ 2,232 |
Loans and Allowance for Loan 29
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Summary of Balance and Activity Related to Allowance for Loan Losses for Held for Investment Loans and the Recorded Investments in Loans and Impairment method by Portfolio Segment | The following tables present the balance and activity related to the allowance for loan losses for held for investment loans by type for the periods presented. Three Months Ended March 31, 2018 2017 (dollars in thousands) Real Estate Commercial Unallocated Total Real Estate Commercial Unallocated Total Beginning balance $ 9,309 $ 4,044 $ 420 $ 13,773 $ 8,111 $ 6,051 $ — $ 14,162 Additions (reductions) to the allowance charged to expense 653 (118 ) (351 ) 184 (1,169 ) 1,169 — — Recoveries on loans charged-off — — — — — — — — Less loans charged-off — — — — — 24 — 24 Ending balance $ 9,962 $ 3,926 $ 69 $ 13,957 $ 6,942 $ 7,244 $ — $ 14,186 The following table presents the recorded investment in loans and impairment method as of and for the three months ended March 31, 2018 and March 31, 2017, and the activity in the allowance for loan losses for the year ended December 31, 2017, by portfolio segment: (dollars in thousands) As of and for the three months ended March 31, 2018 Real Estate Commercial Unallocated Total Reserves: Specific $ — $ — $ — $ — General 9,962 3,926 69 13,957 Loans acquired with deteriorated credit quality — — — — $ 9,962 $ 3,926 $ 69 $ 13,957 Loans evaluated for impairment: Individually $ 2,393 $ 2,072 $ — $ 4,465 Collectively 866,176 390,974 — 1,257,150 Loans acquired with deteriorated credit quality 313 — — 313 $ 868,882 $ 393,046 $ — $ 1,261,928 As of and for the three months ended March 31, 2017 Real Estate Commercial Unallocated Total Reserves: Specific $ — $ 3,559 $ — $ 3,559 General 6,942 3,685 — 10,627 Loans acquired with deteriorated credit quality — — — — $ 6,942 $ 7,244 $ — $ 14,186 Loans evaluated for impairment: Individually $ 2,550 $ 3,559 $ — $ 6,109 Collectively 771,870 360,847 — 1,132,717 Loans acquired with deteriorated credit quality 737 — — 737 $ 775,157 $ 364,406 $ — $ 1,139,563 December 31, 2017 Real Estate Commercial Unallocated Total Allowance for loan losses: Beginning of year $ 8,111 $ 6,051 $ — $ 14,162 Provisions 1,198 (2,671 ) 420 (1,053 ) Charge-offs — (83 ) — (83 ) Recoveries — 747 — 747 $ 9,309 $ 4,044 $ 420 $ 13,773 Reserves: Specific $ — $ — $ — $ — General 9,309 4,044 420 13,773 Loans acquired with deteriorated credit quality — — — — $ 9,309 $ 4,044 $ 420 $ 13,773 Loans evaluated for impairment: Individually $ 2,420 $ 155 $ — $ 2,575 Collectively 834,152 412,032 — 1,246,184 Loans acquired with deteriorated credit quality 315 — — 315 $ 836,887 $ 412,187 $ — $ 1,249,074 |
Summary of Risk Category of Loans by Class of Loans | The risk category of loans by class of loans was as follows at March 31, 2018 and December 31, 2017: (dollars in thousands) Special March 31, 2018 Pass Mention Substandard Impaired Total Real estate: Construction and land development $ 100,954 $ — $ — $ 286 $ 101,240 Commercial real estate 478,059 4,464 15,421 2,107 500,051 Single-family residential mortgages 267,591 — — — 267,591 Commercial: Other 277,678 195 520 — 278,393 SBA 108,711 — 3,870 2,072 114,653 $ 1,232,993 $ 4,659 $ 19,811 $ 4,465 $ 1,261,928 December 31, 2017 Real estate: Construction and land development $ 91,619 $ — $ — $ 289 $ 91,908 Commercial real estate 469,422 19,070 5,416 2,131 496,039 Single-family residential mortgages 248,940 — — — 248,940 Commercial: Other 277,518 2,360 888 — 280,766 SBA 126,759 1,778 2,729 155 131,421 $ 1,214,258 $ 23,208 $ 9,033 $ 2,575 $ 1,249,074 |
Summary of Aging Recorded Investment Past-due Loans | The following table presents the aging of the recorded investment in past-due loans at March 31, 2018 and December 31, 2017 by class of loans: (dollars in thousands) 30-59 60-89 90 Days Total Loans Not Non- Accrual March 31, 2018 Days Days Or More (2) Past Due Past Due Total Loans Loans (1) Real estate: Construction and land development $ — $ — $ — $ — $ 101,240 $ 101,240 $ — Commercial real estate — — — — 500,051 500,051 — Single-family residential mortgages 790 — — 790 266,801 267,591 — Commercial: Other 689 — — 689 277,704 278,393 — SBA 1,462 — 586 2,048 112,605 114,653 2,001 $ 2,941 $ — $ 586 $ 3,527 $ 1,258,401 $ 1,261,928 $ 2,001 Real estate: Single-family residential mortgages held for sale $ 696 $ — $ — $ 696 $ 182,695 $ 183,391 $ — December 31, 2017 Real estate: Construction and land development $ — $ — $ — $ — $ 91,908 $ 91,908 $ — Commercial real estate — — — — 496,039 496,039 — Single-family residential mortgages 1,175 338 — 1,513 247,427 248,940 — Commercial: Other — — — — 280,766 280,766 — SBA — 1,426 84 1,510 129,911 131,421 155 $ 1,175 $ 1,764 $ 84 $ 3,023 $ 1,246,051 $ 1,249,074 $ 155 Real estate: Single-family residential mortgages held for sale $ 697 $ — $ — $ 697 $ 125,150 $ 125,847 $ — (1) Included in total loans. (2) As of March 31, 2018, there were no loans over 90 days past due and still accruing. There was one loan over 90 days past due and still accruing in the amount of $71,000 as of December 31, 2017. |
Summary of Individually Impaired Loans Presented by Class of Loans | Information relating to individually impaired loans presented by class of loans was as follows at March 31, 2018 and December 31, 2017: Unpaid (dollars in thousands) Principal Recorded Average Interest Related March 31, 2018 Balance Investment Balance Income Allowance With no related allowance recorded Real estate: Construction and land development $ 286 $ 286 $ 288 $ 6 $ — Commercial real estate 2,108 2,108 2,119 51 — Commercial - SBA 2,071 2,071 1,114 34 — Total $ 4,465 $ 4,465 $ 3,521 $ 91 $ — December 31, 2017 With no related allowance recorded Real estate: Construction and land development $ 289 $ 289 $ 296 $ 16 $ — Commercial real estate 2,131 2,131 2,192 297 — Commercial - SBA 155 155 78 15 — Total $ 2,575 $ 2,575 $ 2,566 $ 328 $ — |
Summary of Loans Class Modified as TDRs | The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2018. There were no TDRs for the year ended December 31, 2017. Pre- Post- Modification Modification (dollars in thousands) Number of Recorded Recorded March 31, 2018 Loans Investment Investment Commercial 1 $ 71 $ 71 |
Summary of Outstanding Balance and Carrying Amount of Purchased Credit-impaired Loans | The outstanding balance and carrying amount of purchased credit-impaired loans at March 31, 2018 and December 31, 2017 were as follows: March 31, December 31, (dollars in thousands) 2018 2017 Outstanding balance $ 319 $ 322 Carrying amount $ 313 $ 315 |
Summary of Activity in Accretable Yield on Purchased Credit-impaired Loans | Below is a summary of activity in the accretable yield on purchased credit-impaired loans for the three months ended March 31, 2018 and 2017: March 31, March 31, (dollars in thousands) 2018 2017 Beginning balance $ 122 $ 142 Accretion of income (1 ) (20 ) Ending balance $ 121 $ 122 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Loan Servicing [Abstract] | |
Schedule of Principal Balances of Mortgage and SBA Loans Serviced for Others | The principal balances of mortgage and SBA loans serviced for others at March 31, 2018 and December 31, 2017 are as follows: March 31, December 31, (dollars in thousands) 2018 2017 Loans serviced for others: Mortgage loans $ 406,559 $ 384,437 SBA loans $ 174,282 $ 175,919 |
Schedule of Activity for Servicing Assets | Activity for servicing assets follows: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Mortgage SBA Mortgage SBA (dollars in thousands) Loans Loans Loans Loans Servicing assets: Beginning of year $ 1,540 $ 4,417 $ 1,002 $ 2,702 Additions 315 484 — 724 Disposals (39 ) (425 ) — — Amortized to expense (155 ) (158 ) (86 ) (119 ) End of period $ 1,661 $ 4,318 $ 916 $ 3,307 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Future Estimated Amortization Expense | Estimated CDI amortization expense for future years is as follows (dollars in thousands): Year ending December 31: 2018 remaining $ 230 2019 274 2020 244 2021 172 2022 129 Thereafter 308 Total $ 1,357 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Maturities Of Time Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | At March 31, 2018, the scheduled maturities of time deposits are as follows: (dollars in thousands) One year $ 651,067 Two to three years 6,498 $ 657,565 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Outstanding Principal Amount and Unamortized Debt Issuance Cost Related to Subordinated Debentures | At March 31, 2018 and December 31, 2017 the aggregate outstanding principal amount and unamortized debt issuance costs related to these subordinated debentures were as follows: March 31, December 31, (dollars in thousands) 2018 2017 Principal $ 50,000 $ 50,000 Unamortized debt issuance costs $ 436 $ 472 |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rent Payments on Company's Leases | Future minimum rent payments on the Company's leases were as follows at March 31, 2018: (dollars in thousands) Year ending December 31: 2018 remaining $ 1,338 2019 1,625 2020 1,396 2021 1,312 2022 1,089 Thereafter 4,117 $ 10,877 |
Schedule of Financial Commitments whose Contractual Amount Represents Credit Risk | At March 31, 2018 and December 31, 2017, the Company had the following financial commitments whose contractual amount represents credit risk: March 31, December 31, (dollars in thousands) 2018 2017 Commitments to make loans $ 103,354 $ 101,960 Unused lines of credit 119,964 99,217 Commercial and similar letters of credit 4,700 3,013 Standby letters of credit 1,575 1,575 $ 229,593 $ 205,765 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Loans to principal officers, directors, and their affiliates were as follows: March 31, December 31, (dollars in thousands) 2018 2017 Beginning balance $ 2,300 $ 3,445 New loans and advances 300 2,200 Repayments (500 ) (3,345 ) Ending balance $ 2,100 $ 2,300 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Regulated Operations [Abstract] | |
Summary of Company and Bank Continue to Exceed Regulatory Capital Minimum Requirements and Bank Continues to Exceed Well Capitalized Standards | Amount of Capital Required To Be Well- Minimum Required Capitalized for Capital Under Prompt Adequacy Corrective Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2018: Tier 1 Leverage Ratio Consolidated $ 249,304 15.24% $ 65,439 4.00% $ 81,798 5.00% Bank $ 242,192 14.84% $ 65,283 4.00% $ 81,604 5.00% Common Equity Tier 1 Risk-Based Capital Ratio Consolidated $ 245,857 17.95% $ 61,620 4.50% $ 89,007 6.50% Bank $ 242,192 17.72% $ 61,502 4.50% $ 88,837 6.50% Tier 1 Risk-Based Capital Ratio Consolidated $ 249,304 18.21% $ 82,161 6.00% $ 109,547 8.00% Bank $ 242,192 17.72% $ 82,003 6.00% $ 109,338 8.00% Total Risk-Based Capital Ratio Consolidated $ 313,402 22.89% $ 109,547 8.00% $ 136,934 10.00% Bank $ 256,725 18.78% $ 109,338 8.00% $ 136,672 10.00% Amount of Capital Required To Be Well- Minimum Required Capitalized for Capital Under Prompt Adequacy Corrective Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017: Tier 1 Leverage Ratio Consolidated $ 238,219 14.35% $ 66,423 4.00% $ 83,029 5.00% Bank $ 232,765 14.50% $ 64,214 4.00% $ 80,267 5.00% Common Equity Tier 1 Risk-Based Capital Ratio Consolidated $ 234,794 17.54% $ 60,233 4.50% $ 87,003 6.50% Bank $ 232,765 17.42% $ 60,122 4.50% $ 86,843 6.50% Tier 1 Risk-Based Capital Ratio Consolidated $ 238,219 17.80% $ 80,311 6.00% $ 107,081 8.00% Bank $ 232,765 17.42% $ 80,163 6.00% $ 106,884 8.00% Total Risk-Based Capital Ratio Consolidated $ 301,802 22.55% $ 107,081 8.00% $ 133,851 10.00% Bank $ 246,820 18.47% $ 106,884 8.00% $ 133,605 10.00% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Hierarchy and Fair Value for Each Major Category of Assets and Liabilities Measured at Fair Value | The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value at March 31, 2018 and December 31, 2017: (dollars in thousands) Fair Value Measurements Using: March 31, 2018 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ 7,482 $ 7,482 Mortgage-backed securities Government sponsored agencies 37,672 37,672 Corporate debt securities 37,694 37,694 $ — $ 82,848 $ — $ 82,848 On a non-recurring basis: Other real estate owned $ — $ — $ 293 $ 293 December 31, 2017 Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ 7,816 7,816 Mortgage-backed securities Government sponsored agencies 39,215 39,215 Corporate debt securities 17,926 17,926 $ — $ 64,957 $ — $ 64,957 On a non-recurring basis: Other real estate owned $ — $ — $ 293 $ 293 |
Summary of Quantitative Information About Non-recurring Level 3 Fair Value Measurements | Quantitative information about the Company's non-recurring Level 3 fair value measurements at March 31, 2018 and December 31, 2017 is as follows: Weighted- (dollars in thousands) Fair Value Valuation Unobservable Adjustment Average March 31, 2018 Amount Technique Input Range Adjustment Other real estate owned $ 293 Third Party Management Adjustments 21% 21% Appraisals to Reflect Current Conditions and Selling Costs December 31, 2017 Other real estate owned $ 293 Third Party Management Adjustments 21% 21% Appraisals to Reflect Current Conditions and Selling Costs |
Fair Value of Financial Instr38
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy Level and Estimated Fair Value of Significant Financial Instruments | The fair value hierarchy level and estimated fair value of significant financial instruments at March 31, 2018 and December 31, 2017 are summarized as follows: March 31, December 31, 2018 2017 Fair Value Carrying Fair Carrying Fair (dollars in thousands) Hierarchy Value Value Value Value Financial Assets: Cash and due from banks Level 1 $ 53,535 $ 53,535 $ 70,048 $ 70,048 Federal funds sold and other cash equivalents Level 1 25,000 25,000 80,000 80,000 Interest-earning deposits in other financial institutions Level 1 600 600 600 600 Investment securities - AFS Level 2 82,848 82,848 64,957 64,957 Investment securities - HTM Level 2 9,998 10,020 10,009 10,250 Mortgage loans held for sale Level 1 183,391 128,491 125,847 128,972 Loans, net Level 3 1,247,971 1,288,740 1,235,301 1,236,289 Financial Liabilities: Deposits Level 2 1,373,504 1,371,213 $ 1,337,281 $ 1,336,353 FHLB advances Level 2 — — 25,000 25,000 Long-term debt Level 2 49,564 41,950 49,528 44,319 Subordinated debentures Level 3 3,447 3,625 3,424 3,348 |
Earnings Per Share (EPS) (Table
Earnings Per Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Shares Outstanding to Income and Number of Shares Used to Compute EPS | The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute EPS: Three Months Ended March 31 2018 2017 (dollars in thousands except per share amounts) Income Shares Income Shares Net income as reported $ 8,847 $ 5,493 Shares outstanding 16,288,928 12,827,803 Impact of weighting shares (206,033 ) — Used in basic EPS 8,847 16,082,895 5,493 12,827,803 Dilutive effect of outstanding Stock options 1,079,425 897,918 Used in dilutive EPS $ 8,847 17,162,320 $ 5,493 13,725,721 Basic earnings per common share $ 0.55 $ 0.43 Diluted earnings per common share $ 0.52 $ 0.40 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity - (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | $ 84,325 | $ 65,587 |
Available for sale, Gross Unrealized Gains | 145 | 178 |
Available for sale, Gross Unrealized Losses | (1,622) | (808) |
Available for sale, Fair Value | 82,848 | 64,957 |
Held to maturity, Amortized Cost | 9,998 | 10,009 |
Held to maturity, Gross Unrealized Gains | 169 | 260 |
Held to maturity, Gross Unrealized Losses | (147) | (19) |
Securities held to maturity, fair value | 10,020 | 10,250 |
Municipal Taxable Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to maturity, Amortized Cost | 4,294 | 4,295 |
Held to maturity, Gross Unrealized Gains | 165 | 228 |
Securities held to maturity, fair value | 4,459 | 4,523 |
Municipal Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to maturity, Amortized Cost | 5,704 | 5,714 |
Held to maturity, Gross Unrealized Gains | 4 | 32 |
Held to maturity, Gross Unrealized Losses | (147) | (19) |
Securities held to maturity, fair value | 5,561 | 5,727 |
Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 7,746 | 7,968 |
Available for sale, Gross Unrealized Losses | (264) | (152) |
Available for sale, Fair Value | 7,482 | 7,816 |
Government Sponsored Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 38,843 | 39,806 |
Available for sale, Gross Unrealized Gains | 17 | |
Available for sale, Gross Unrealized Losses | (1,171) | (608) |
Available for sale, Fair Value | 37,672 | 39,215 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 37,736 | 17,813 |
Available for sale, Gross Unrealized Gains | 145 | 161 |
Available for sale, Gross Unrealized Losses | (187) | (48) |
Available for sale, Fair Value | $ 37,694 | $ 17,926 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Mar. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) |
Investments Debt And Equity Securities [Abstract] | ||
Number of investment securities pledged as collateral | Security | 1 | |
Fair value of securities pledged to secure local agency deposit | $ | $ 759,000 | $ 796,000 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Investment Securities Portfolio Expected Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due from one to five years, Available for sale, Amortized Cost | $ 52,326 | |
Due from five to ten years, Available for sale, Amortized Cost | 27,958 | |
Due from ten years and greater, Available for sale, Amortized Cost | 4,041 | |
Available for sale, Amortized Cost | 84,325 | $ 65,587 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due from one to five years, Available for sale, Fair Value | 51,530 | |
Due from five to ten years, Available for sale, Fair Value | 27,333 | |
Due from ten years and greater, Available for sale, Fair Value | 3,985 | |
Available for sale, Fair value | 82,848 | 64,957 |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
Due from one to five years, Held to Maturity, Amortized Cost | 2,780 | |
Due from five to ten years, Held to Maturity, Amortized Cost | 2,397 | |
Due from ten years and greater, Held to Maturity, Amortized Cost | 4,821 | |
Held to maturity, Amortized Cost | 9,998 | 10,009 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due from one to five years, Held to Maturity, Fair Value | 2,865 | |
Due from five to ten years, Held to Maturity, Fair Value | 2,481 | |
Due from ten years and greater, Held to Maturity, Fair Value | 4,674 | |
Held to Maturity, Fair Value | $ 10,020 | $ 10,250 |
Investment Securities - Summa43
Investment Securities - Summary of Available for Sale Securities With Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (1,017) | $ (406) |
Less than Twelve Months Estimated Fair Value | 39,017 | 32,683 |
Twelve Months or More Unrealized Losses | (605) | (402) |
Twelve Months or More Estimated Fair Value | 17,398 | 17,636 |
Total Unrealized Losses | (1,622) | (808) |
Total Estimated Fair Value | 56,415 | 50,319 |
Held to maturity, Less than Twelve Months Unrealized Losses | (147) | (19) |
Held to maturity, Less than Twelve Months Estimated Fair Value | 4,674 | 2,232 |
Held to maturity, Total Unrealized Losses | (147) | (19) |
Held to maturity, Total Estimated Fair Value | 4,674 | 2,232 |
Municipal Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to maturity, Less than Twelve Months Unrealized Losses | (147) | (19) |
Held to maturity, Less than Twelve Months Estimated Fair Value | 4,674 | 2,232 |
Held to maturity, Total Unrealized Losses | (147) | (19) |
Held to maturity, Total Estimated Fair Value | 4,674 | 2,232 |
Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | (112) | (32) |
Less than Twelve Months Estimated Fair Value | 3,873 | 4,039 |
Twelve Months or More Unrealized Losses | (152) | (120) |
Twelve Months or More Estimated Fair Value | 3,609 | 3,777 |
Total Unrealized Losses | (264) | (152) |
Total Estimated Fair Value | 7,482 | 7,816 |
Government Sponsored Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | (786) | (359) |
Less than Twelve Months Estimated Fair Value | 25,484 | 23,609 |
Twelve Months or More Unrealized Losses | (385) | (249) |
Twelve Months or More Estimated Fair Value | 11,852 | 11,887 |
Total Unrealized Losses | (1,171) | (608) |
Total Estimated Fair Value | 37,336 | 35,496 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | (119) | (15) |
Less than Twelve Months Estimated Fair Value | 9,660 | 5,035 |
Twelve Months or More Unrealized Losses | (68) | (33) |
Twelve Months or More Estimated Fair Value | 1,937 | 1,972 |
Total Unrealized Losses | (187) | (48) |
Total Estimated Fair Value | $ 11,597 | $ 7,007 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan Losses - Summary of Balance and Activity Related to Allowance for Loan Losses for Held for Investment Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | $ 13,773 | $ 14,162 | $ 14,162 |
Additions (reductions) to the allowance charged to expense | 184 | ||
Recoveries on loans charged-off | 747 | ||
Less loans charged-off | 24 | (83) | |
Allowance for loan losses, Ending balance | 13,957 | 14,186 | 13,773 |
Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 9,309 | 8,111 | 8,111 |
Additions (reductions) to the allowance charged to expense | 653 | (1,169) | |
Allowance for loan losses, Ending balance | 9,962 | 6,942 | 9,309 |
Commercial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 4,044 | 6,051 | 6,051 |
Additions (reductions) to the allowance charged to expense | (118) | 1,169 | |
Recoveries on loans charged-off | 747 | ||
Less loans charged-off | 24 | (83) | |
Allowance for loan losses, Ending balance | 3,926 | $ 7,244 | 4,044 |
Unallocated | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 420 | ||
Additions (reductions) to the allowance charged to expense | (351) | ||
Allowance for loan losses, Ending balance | $ 69 | $ 420 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan Losses - Summary of Recorded Investment in Loans Impairment Method and Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Reserves: | |||
Loan losses, Reserves | $ 13,957 | $ 14,186 | $ 13,773 |
Loans evaluated for impairment: | |||
Loans, Individually evaluated for impairment | 4,465 | 6,109 | 2,575 |
Loans, Collectively evaluated for impairment | 1,257,150 | 1,132,717 | 1,246,184 |
Total loans, gross | 1,261,928 | 1,139,563 | 1,249,074 |
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | 13,773 | 14,162 | 14,162 |
Allowance for loan losses, Provisions | 184 | (1,053) | |
Allowance for loan losses, Charge-offs | 24 | (83) | |
Allowance for loan losses, Recoveries | 747 | ||
Allowance for loan losses, Ending balance | 13,957 | 14,186 | 13,773 |
Loans Acquired with Deteriorated Credit Quality | |||
Loans evaluated for impairment: | |||
Loans acquired | 313 | 737 | 315 |
Specific Reserves | |||
Reserves: | |||
Loan losses, Reserves | 3,559 | ||
General Reserves | |||
Reserves: | |||
Loan losses, Reserves | 13,957 | 10,627 | 13,773 |
Real Estate | |||
Reserves: | |||
Loan losses, Reserves | 9,962 | 6,942 | 9,309 |
Loans evaluated for impairment: | |||
Loans, Individually evaluated for impairment | 2,393 | 2,550 | 2,420 |
Loans, Collectively evaluated for impairment | 866,176 | 771,870 | 834,152 |
Total loans, gross | 868,882 | 775,157 | 836,887 |
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | 9,309 | 8,111 | 8,111 |
Allowance for loan losses, Provisions | 1,198 | ||
Allowance for loan losses, Ending balance | 9,962 | 6,942 | 9,309 |
Real Estate | Loans Acquired with Deteriorated Credit Quality | |||
Loans evaluated for impairment: | |||
Loans acquired | 313 | 737 | 315 |
Real Estate | General Reserves | |||
Reserves: | |||
Loan losses, Reserves | 9,962 | 6,942 | 9,309 |
Commercial | |||
Reserves: | |||
Loan losses, Reserves | 3,926 | 7,244 | 4,044 |
Loans evaluated for impairment: | |||
Loans, Individually evaluated for impairment | 2,072 | 3,559 | 155 |
Loans, Collectively evaluated for impairment | 390,974 | 360,847 | 412,032 |
Total loans, gross | 393,046 | 364,406 | 412,187 |
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | 4,044 | 6,051 | 6,051 |
Allowance for loan losses, Provisions | (2,671) | ||
Allowance for loan losses, Charge-offs | 24 | (83) | |
Allowance for loan losses, Recoveries | 747 | ||
Allowance for loan losses, Ending balance | 3,926 | 7,244 | 4,044 |
Commercial | Specific Reserves | |||
Reserves: | |||
Loan losses, Reserves | 3,559 | ||
Commercial | General Reserves | |||
Reserves: | |||
Loan losses, Reserves | 3,926 | $ 3,685 | 4,044 |
Unallocated | |||
Reserves: | |||
Loan losses, Reserves | 69 | 420 | |
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | 420 | ||
Allowance for loan losses, Provisions | 420 | ||
Allowance for loan losses, Ending balance | 69 | 420 | |
Unallocated | General Reserves | |||
Reserves: | |||
Loan losses, Reserves | $ 69 | $ 420 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan Losses - Summary of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 1,261,928 | $ 1,249,074 |
Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 101,240 | 91,908 |
Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 500,051 | 496,039 |
Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 267,591 | 248,940 |
Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 278,393 | 280,766 |
Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 114,653 | 131,421 |
Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,232,993 | 1,214,258 |
Pass | Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 100,954 | 91,619 |
Pass | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 478,059 | 469,422 |
Pass | Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 267,591 | 248,940 |
Pass | Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 277,678 | 277,518 |
Pass | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 108,711 | 126,759 |
Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,659 | 23,208 |
Special Mention | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,464 | 19,070 |
Special Mention | Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 195 | 2,360 |
Special Mention | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,778 | |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 19,811 | 9,033 |
Substandard | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 15,421 | 5,416 |
Substandard | Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 520 | 888 |
Substandard | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,870 | 2,729 |
Impaired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,465 | 2,575 |
Impaired | Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 286 | 289 |
Impaired | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,107 | 2,131 |
Impaired | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 2,072 | $ 155 |
Loans and Allowance for Loan 47
Loans and Allowance for Loan Losses - Summary of Aging Recorded Investment Past-due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 3,527 | $ 3,023 |
Loans Not Past Due | 1,258,401 | 1,246,051 |
Total Loans | 1,261,928 | 1,249,074 |
Non-Accrual Loans | 2,001 | 155 |
30-59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,941 | 1,175 |
60-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,764 | |
90 Days Or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 586 | 84 |
Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 101,240 | 91,908 |
Total Loans | 101,240 | 91,908 |
Real Estate | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 500,051 | 496,039 |
Total Loans | 500,051 | 496,039 |
Real Estate | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 790 | 1,513 |
Loans Not Past Due | 266,801 | 247,427 |
Total Loans | 267,591 | 248,940 |
Real Estate | Single Family Residential Mortgages Loans Held For Sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 696 | 697 |
Loans Not Past Due | 182,695 | 125,150 |
Total Loans | 183,391 | 125,847 |
Real Estate | 30-59 Days | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 790 | 1,175 |
Real Estate | 30-59 Days | Single Family Residential Mortgages Loans Held For Sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 696 | 697 |
Real Estate | 60-89 Days | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 338 | |
Commercial | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 689 | |
Loans Not Past Due | 277,704 | 280,766 |
Total Loans | 278,393 | 280,766 |
Commercial | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,048 | 1,510 |
Loans Not Past Due | 112,605 | 129,911 |
Total Loans | 114,653 | 131,421 |
Non-Accrual Loans | 2,001 | 155 |
Commercial | 30-59 Days | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 689 | |
Commercial | 30-59 Days | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,462 | |
Commercial | 60-89 Days | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,426 | |
Commercial | 90 Days Or More | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 586 | $ 84 |
Loans and Allowance for Loan 48
Loans and Allowance for Loan Losses - Summary of Aging Recorded Investment Past-due Loans (Parenthetical) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
90 Days Or More | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loan over 90 days past due and still accruing | $ 0 | $ 71,000 |
Loans and Allowance for Loan 49
Loans and Allowance for Loan Losses - Summary of Individually Impaired Loans Presented by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance, With no related allowance recorded | $ 4,465 | $ 2,575 |
Recorded Investment, With no related allowance recorded | 4,465 | 2,575 |
Average Balance, With no related allowance recorded | 3,521 | 2,566 |
Interest Income, With no related allowance recorded | 91 | 328 |
Construction and Land Development | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance, With no related allowance recorded | 286 | 289 |
Recorded Investment, With no related allowance recorded | 286 | 289 |
Average Balance, With no related allowance recorded | 288 | 296 |
Interest Income, With no related allowance recorded | 6 | 16 |
Commercial Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance, With no related allowance recorded | 2,108 | 2,131 |
Recorded Investment, With no related allowance recorded | 2,108 | 2,131 |
Average Balance, With no related allowance recorded | 2,119 | 2,192 |
Interest Income, With no related allowance recorded | 51 | 297 |
Commercial | SBA | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance, With no related allowance recorded | 2,071 | 155 |
Recorded Investment, With no related allowance recorded | 2,071 | 155 |
Average Balance, With no related allowance recorded | 1,114 | 78 |
Interest Income, With no related allowance recorded | $ 34 | $ 15 |
Loans and Allowance for Loan 50
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | Mar. 31, 2017USD ($) | |
Financing Receivable Recorded Investment [Line Items] | |||
Interest income recognized on cash basis | $ 0 | $ 0 | |
Number of loans identified as troubled debt restructurings | Loan | 5 | 4 | |
Specific reserve | $ 13,957,000 | $ 13,773,000 | $ 14,186,000 |
Commitments to lend an additional amounts of outstanding loans are classified as TDR's | $ 0 | 0 | |
Description of loans modified as troubled debt restructuring | As of March 31, 2018, the terms of one loan was modified as TDR. The modification of the terms generally included loans where a moratorium on loan payments was granted. Such moratoriums ranged from three months to twelve months on the loans restructured in 2017 and 2016. | ||
Increase in allowance for loan losses under purchased credit-impaired loans | $ 0 | 0 | |
Significant reductions in allowance for loan losses under purchased credit-impaired loans | $ 0 | 0 | |
Minimum | |||
Financing Receivable Recorded Investment [Line Items] | |||
Moratorium on loan payments period granted | 3 months | ||
Maximum | |||
Financing Receivable Recorded Investment [Line Items] | |||
Moratorium on loan payments period granted | 12 months | ||
One Loan | |||
Financing Receivable Recorded Investment [Line Items] | |||
Specific reserve | $ 0 | $ 0 |
Loans and Allowance for Loan 51
Loans and Allowance for Loan Losses - Summary of Loans Class Modified as TDRs (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)Loan | Dec. 31, 2017Loan | |
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | Loan | 5 | 4 |
Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | Loan | 1 | |
Pre-Modification Recorded Investment | $ | $ 71 | |
Post-Modification Recorded Investment | $ | $ 71 |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses - Summary of Outstanding Balance and Carrying Amount of Purchased Credit-impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Outstanding balance | $ 319 | $ 322 |
Carrying amount | $ 313 | $ 315 |
Loans and Allowance for Loan 53
Loans and Allowance for Loan Losses - Summary of Activity in Accretable Yield on Purchased Credit-impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Receivables [Abstract] | ||
Beginning balance | $ 122 | $ 142 |
Accretion of income | (1) | (20) |
Ending balance | $ 121 | $ 122 |
Loan Servicing- Schedule of Pri
Loan Servicing- Schedule of Principal Balances of Mortgage and SBA Loans Serviced for Others (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans | ||
Schedule Of Mortgage And Small Business Administration Loans Serviced [Line Items] | ||
Loans serviced for others | $ 406,559 | $ 384,437 |
SBA Loans | ||
Schedule Of Mortgage And Small Business Administration Loans Serviced [Line Items] | ||
Loans serviced for others | $ 174,282 | $ 175,919 |
Loan Servicing - Schedule of Ac
Loan Servicing - Schedule of Activity for Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Mortgage Loans | ||
Servicing assets: | ||
Beginning of year | $ 1,540 | $ 1,002 |
Additions | 315 | |
Disposals | (39) | |
Amortized to expense | (155) | (86) |
End of period | 1,661 | 916 |
SBA | ||
Servicing assets: | ||
Beginning of year | 4,417 | 2,702 |
Additions | 484 | 724 |
Disposals | (425) | |
Amortized to expense | (158) | (119) |
End of period | $ 4,318 | $ 3,307 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | $ 5,979,000 | $ 5,957,000 | |
Loan servicing fees, net of amortization | (31,000) | $ 262,000 | |
Mortgage Loans | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | 2,751,000 | 2,538,000 | |
SBA Loans | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | $ 5,984,000 | $ 5,915,000 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule Of Finite Lived Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 29,940,000 | $ 29,940,000 | |
Impairment losses recognized on goodwill | 0 | $ 0 | |
Amortization of intangibles | 81,000 | 94,000 | |
Core Deposit Intangible | |||
Schedule Of Finite Lived Intangible Assets And Goodwill [Line Items] | |||
Unamortized balance of intangible assets | 1,357,000 | $ 1,438,000 | |
Amortization of intangibles | $ 81,000 | $ 94,000 | |
Core Deposit Intangible | Minimum | |||
Schedule Of Finite Lived Intangible Assets And Goodwill [Line Items] | |||
Intangible assets, estimated useful life | 8 years | ||
Core Deposit Intangible | Maximum | |||
Schedule Of Finite Lived Intangible Assets And Goodwill [Line Items] | |||
Intangible assets, estimated useful life | 10 years |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Future Estimated Amortization Expense (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2018 remaining | $ 230 |
2,019 | 274 |
2,020 | 244 |
2,021 | 172 |
2,022 | 129 |
Thereafter | 308 |
Total | $ 1,357 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Maturities Of Time Deposits [Abstract] | |
One year | $ 651,067 |
Two to three years | 6,498 |
Time deposits | $ 657,565 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 50,000,000 | $ 50,000,000 | |
6.5% Fixed to Floating Rate Subordinated Debentures, Due March 31, 2026 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 50,000,000 | ||
Long-term debt, fixed interest rate | 6.50% | ||
Debt instrument, due date | Mar. 31, 2026 | ||
Debt instrument, fixed to floating interest rate conversion date | Mar. 31, 2021 | ||
Debt instrument, floating rate description | 3 month London Interbank Offered Rate (LIBOR) plus 516 basis points | ||
Debt instrument, basis points | 5.16% | ||
Tier-1 capital | $ 35,000,000 |
Long-term Debt - Schedule of Ag
Long-term Debt - Schedule of Aggregate Outstanding Principal Amount and Unamortized Debt Issuance Cost Related to Subordinated Debentures (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instruments [Abstract] | ||
Principal | $ 50,000,000 | $ 50,000,000 |
Unamortized debt issuance costs | $ 436,000 | $ 472,000 |
Subordinated Debentures - Addit
Subordinated Debentures - Additional Information (Details) - USD ($) | Feb. 19, 2016 | Mar. 15, 2012 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 50,000,000 | $ 50,000,000 | |||
Subordinated Debentures | |||||
Debt Instrument [Line Items] | |||||
Percentage of principal amount redeemed | 100.00% | ||||
Debt instrument redemption period | Mar. 15, 2012 | ||||
Debt instrument maturity period | Mar. 15, 2037 | ||||
Defer interest payments maximum period | 5 years | ||||
Debt instrument interest rate description | three month LIBOR plus 1.65%, which was 3.77% and 3.24% at March 31, 2018 and December 31, 2017 | ||||
Debt instrument interest percentage | 3.77% | 3.24% | |||
TFC Statutory Trust | Private Offering | |||||
Debt Instrument [Line Items] | |||||
Number of trust preferred securities | 5,000 | ||||
Trust preferred securities liquidation amount per preferred security | $ 1,000 | ||||
TFC Statutory Trust | Subordinated Debentures | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 5,000,000 | ||||
Debt valuation reserve | $ 1,900,000 | ||||
Debt amortization expense | 23,000 | $ 23,000 | |||
TFC Statutory Trust | Fair Value, Inputs, Level 1 | |||||
Debt Instrument [Line Items] | |||||
Subordinated debenture liability | $ 3,255,000 | ||||
Other Assets | |||||
Debt Instrument [Line Items] | |||||
Investment in common stock | $ 155,000 | ||||
London Interbank Offered Rate | Subordinated Debentures | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis points | 1.65% |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Line of credit amount outstanding | $ 0 | |
FRB Secured Line of Credit | ||
Debt Instrument [Line Items] | ||
Secured borrowing capacity | 13,800,000 | |
Carrying value of collateral loan pledged | 25,200,000 | |
FHLB Secured Line of Credit | ||
Debt Instrument [Line Items] | ||
Secured borrowing capacity | 342,900,000 | |
Carrying value of collateral loan pledged | 392,200,000 | |
FHLB | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 25,000,000 | |
Short-term borrowings interest percentage | 1.41% | |
Short-term borrowings repayment date | Jan. 2, 2018 | |
Zions Bank | Maximum | ||
Debt Instrument [Line Items] | ||
Borrowings of unsecured loan | 20,000,000 | |
Wells Fargo Bank | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Borrowings of unsecured loan | 2,000,000 | |
Wells Fargo Bank | Maximum | ||
Debt Instrument [Line Items] | ||
Borrowings of unsecured loan | 10,000,000 | |
First Tennessee National Bank | Maximum | ||
Debt Instrument [Line Items] | ||
Borrowings of unsecured loan | 12,000,000 | |
Pacific Coast Bankers' Bank | Maximum | ||
Debt Instrument [Line Items] | ||
Borrowings of unsecured loan | $ 5,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 1,580 | $ 3,875 |
Effective tax rate | 15.20% | 41.40% |
Commitments - Schedule of Futur
Commitments - Schedule of Future Minimum Rent Payments on Company's Leases (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2018 remaining | $ 1,338 |
2,019 | 1,625 |
2,020 | 1,396 |
2,021 | 1,312 |
2,022 | 1,089 |
Thereafter | 4,117 |
Total | $ 10,877 |
Commitments - Additional Inform
Commitments - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Total rental expense, recognized on straight-line basis | $ 437,000 | $ 381,000 |
Commitments - Schedule of Finan
Commitments - Schedule of Financial Commitments whose Contractual Amount Represents Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | $ 229,593 | $ 205,765 |
Commitments to Make Loans | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | 103,354 | 101,960 |
Unused Lines of Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | 119,964 | 99,217 |
Commercial and Similar Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | 4,700 | 3,013 |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | $ 1,575 | $ 1,575 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 2,300 | $ 3,445 |
New loans and advances | 300 | 2,200 |
Repayments | (500) | (3,345) |
Ending balance | $ 2,100 | $ 2,300 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Executive Officers, Directors and their Related Interests | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 1.8 | $ 2.1 |
Principal Officers, Directors and their Affiliates | ||
Related Party Transaction [Line Items] | ||
Deposits from related parties | $ 43.9 | $ 43.8 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 18, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 131,000 | $ 198,000 | |
Income tax benefits recognized | $ 1,200,000 | $ 61,000 | |
Omnibus Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of number of shares of common stock issued and outstanding | 24.00% | ||
Common stock reserved for issuance | 3,848,341 | ||
Available for issuance of common stock | 1,353,207 | ||
Maximum | Omnibus Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved as percentage of issued and outstanding shares | 30.00% | ||
Maximum | 2010 Stock Option Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved as percentage of issued and outstanding shares | 30.00% | ||
Common stock reserved for issuance | 3,494,478 | ||
Additional shares of common stock available for grant | 0 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) - USD ($) | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 02, 2017 | Jan. 02, 2016 | Jan. 01, 2015 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||||||
Common equity Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 4.50% | |||||||
Common equity Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 6.50% | |||||||
Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 4.00% | 6.00% | 6.00% | |||||
Increased Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 6.00% | |||||||
Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 6.00% | 8.00% | 8.00% | |||||
Increased Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 8.00% | |||||||
Capital conservation buffer | 2.50% | 2.50% | 0.625% | 2.50% | ||||
Capital conservation buffer phased-in on pro rata basis period | 4 years | |||||||
Scenario Forecast | ||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||||||
Capital conservation buffer | 2.50% | |||||||
Minimum | ||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||||||
Regulatory assets | $ 1,000,000,000 | |||||||
Required assets to liabilities ratio after dividend effect | 125.00% |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Company and Bank Continue to Exceed Regulatory Capital Minimum Requirements and Bank Continues to Exceed Well Capitalized Standards (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Risk-Based Capital Ratio, Amount | $ 242,192 | $ 232,765 | |
Tier 1 Risk-Based Capital Ratio, Ratio | 17.72% | 17.42% | |
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 82,003 | $ 80,163 | |
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 6.00% | 6.00% | 4.00% |
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 109,338 | $ 106,884 | |
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 8.00% | 8.00% | 6.00% |
Total Risk-Based Capital Ratio, Amount | $ 256,725 | $ 246,820 | |
Total Risk-Based Capital Ratio, Ratio | 18.78% | 18.47% | |
Total Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 109,338 | $ 106,884 | |
Total Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 136,672 | $ 133,605 | |
Total Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 10.00% | 10.00% | |
RBB Bancorp | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Leverage Ratio, Amount | $ 249,304 | $ 238,219 | |
Tier 1 Leverage Ratio, Ratio | 15.24% | 14.35% | |
Tier 1 Leverage Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 65,439 | $ 66,423 | |
Tier 1 Leverage Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% | |
Tier 1 Leverage Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 81,798 | $ 83,029 | |
Tier 1 Leverage Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 5.00% | 5.00% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Amount | $ 245,857 | $ 234,794 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Ratio | 17.95% | 17.54% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 61,620 | $ 60,233 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 4.50% | 4.50% | |
Common Equity Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 89,007 | $ 87,003 | |
Common Equity Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 6.50% | 6.50% | |
Tier 1 Risk-Based Capital Ratio, Amount | $ 249,304 | $ 238,219 | |
Tier 1 Risk-Based Capital Ratio, Ratio | 18.21% | 17.80% | |
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 82,161 | $ 80,311 | |
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 6.00% | 6.00% | |
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 109,547 | $ 107,081 | |
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital Ratio, Amount | $ 313,402 | $ 301,802 | |
Total Risk-Based Capital Ratio, Ratio | 22.89% | 22.55% | |
Total Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 109,547 | $ 107,081 | |
Total Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 136,934 | $ 133,851 | |
Total Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 10.00% | 10.00% | |
Royal Business Bank | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Leverage Ratio, Amount | $ 242,192 | $ 232,765 | |
Tier 1 Leverage Ratio, Ratio | 14.84% | 14.50% | |
Tier 1 Leverage Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 65,283 | $ 64,214 | |
Tier 1 Leverage Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% | |
Tier 1 Leverage Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 81,604 | $ 80,267 | |
Tier 1 Leverage Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 5.00% | 5.00% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Amount | $ 242,192 | $ 232,765 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Ratio | 17.72% | 17.42% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 61,502 | $ 60,122 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 4.50% | 4.50% | |
Common Equity Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 88,837 | $ 86,843 | |
Common Equity Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 6.50% | 6.50% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Hierarchy and Fair Value for Each Major Category of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets measured at fair value: | ||
Assets measured at fair value on recurring basis | $ 82,848 | $ 64,957 |
Other Real Estate Owned | ||
Assets measured at fair value: | ||
Assets measured at fair value on a non-recurring basis | 293 | 293 |
Government Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value on recurring basis | 7,482 | 7,816 |
Government Sponsored Agencies | ||
Assets measured at fair value: | ||
Assets measured at fair value on recurring basis | 37,672 | 39,215 |
Corporate Debt Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value on recurring basis | 37,694 | 17,926 |
Fair Value Measurements Using Level 2 | ||
Assets measured at fair value: | ||
Assets measured at fair value on recurring basis | 82,848 | 64,957 |
Fair Value Measurements Using Level 2 | Government Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value on recurring basis | 7,482 | 7,816 |
Fair Value Measurements Using Level 2 | Government Sponsored Agencies | ||
Assets measured at fair value: | ||
Assets measured at fair value on recurring basis | 37,672 | 39,215 |
Fair Value Measurements Using Level 2 | Corporate Debt Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value on recurring basis | 37,694 | 17,926 |
Fair Value Measurements Using Level 3 | Other Real Estate Owned | ||
Assets measured at fair value: | ||
Assets measured at fair value on a non-recurring basis | $ 293 | $ 293 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Write-downs to OREO | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Quantitative Information About Non-recurring Level 3 Fair Value Measurements (Details) - Other Real Estate Owned - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair Value Amount | $ 293 | $ 293 |
Level 3 | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair Value Amount | 293 | 293 |
Level 3 | Third Party Appraisals | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair Value Amount | $ 293 | $ 293 |
Fair Value Adjustment | 21.00% | 21.00% |
Level 3 | Third Party Appraisals | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair Value Adjustment | 21.00% | 21.00% |
Fair Value of Financial Instr76
Fair Value of Financial Instruments - Schedule of Fair Value Hierarchy Level and Estimated Fair Value of Significant Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Cash and due from banks | $ 53,535 | $ 70,048 |
Federal funds sold and other cash equivalents | 25,000 | 80,000 |
Interest-earning deposits in other financial institutions | 600 | 600 |
Investment securities - AFS | 82,848 | 64,957 |
Investment securities - HTM | 9,998 | 10,009 |
Mortgage loans held for sale | 183,391 | 125,847 |
Loans, net | 1,247,971 | 1,235,301 |
Investment securities - HTM | 10,020 | 10,250 |
Financial Liabilities: | ||
Deposits | 1,373,504 | 1,337,281 |
FHLB advances | 25,000 | |
Long-term debt | 49,564 | 49,528 |
Subordinated debentures | 3,447 | 3,424 |
Fair Value, Inputs, Level 1 | Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 53,535 | 70,048 |
Federal funds sold and other cash equivalents | 25,000 | 80,000 |
Interest-earning deposits in other financial institutions | 600 | 600 |
Mortgage loans held for sale | 128,491 | 128,972 |
Fair Value Measurements Using Level 2 | Fair Value | ||
Financial Assets: | ||
Investment securities - AFS | 82,848 | 64,957 |
Investment securities - HTM | 10,020 | 10,250 |
Financial Liabilities: | ||
Deposits | 1,371,213 | 1,336,353 |
FHLB advances | 25,000 | |
Long-term debt | 41,950 | 44,319 |
Fair Value Measurements Using Level 3 | Fair Value | ||
Financial Assets: | ||
Loans, net | 1,288,740 | 1,236,289 |
Financial Liabilities: | ||
Subordinated debenture liability | $ 3,625 | $ 3,348 |
Earnings Per Share (EPS) - Comp
Earnings Per Share (EPS) - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income as reported | $ 8,847 | $ 5,493 |
Shares outstanding | 16,288,928 | 12,827,803 |
Impact of weighting shares | (206,033) | |
Used in basic EPS, Income | $ 8,847 | $ 5,493 |
Used in basic EPS, Shares | 16,082,895 | 12,827,803 |
Dilutive effect of outstanding | ||
Stock options, Shares | 1,079,425 | 897,918 |
Used in dilutive EPS, Income | $ 8,847 | $ 5,493 |
Used in dilutive EPS, Shares | 17,162,320 | 13,725,721 |
Basic earnings per common share | $ 0.55 | $ 0.43 |
Diluted earnings per common share | $ 0.52 | $ 0.40 |
Qualified Affordable Housing 78
Qualified Affordable Housing Project Investments - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investment for qualified affordable housing projects | $ 8,031,000 | $ 5,670,000 | |
Unfunded commitments related to the investments in qualified affordable housing projects | 6,264,000 | $ 4,194,000 | |
Amortization expense | $ 139,000 | $ 22,000 | |
Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Expected year in which commitments are fulfilled | 2,027 | ||
Minimum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Expected year in which commitments are fulfilled | 2,028 |
Recent Developments - Additiona
Recent Developments - Additional Information (Details) - USD ($) | Apr. 23, 2018 | Apr. 18, 2018 | Sep. 30, 2018 | Mar. 31, 2018 |
Recent Developments [Line Items] | ||||
Common stock, par value | ||||
Subsequent Event | ||||
Recent Developments [Line Items] | ||||
Cash dividend declared date | Apr. 18, 2018 | |||
Cash dividends declared per share | $ 0.09 | |||
Cash dividend payable date | May 15, 2018 | |||
Cash dividend declared, record date | Apr. 30, 2018 | |||
Subsequent Event | Merger Agreement | First American International Corporation | ||||
Recent Developments [Line Items] | ||||
Repurchase of outstanding preferred stock | $ 17,000,000 | |||
Amount committed to lend FAIC for repurchase of outstanding preferred stock | $ 17,000,000 | |||
Committed to lend FAIC for repurchase of outstanding preferred stock, maximum period | 1 month | |||
Subsequent Event | Convertible Common Stock | Merger Agreement | ||||
Recent Developments [Line Items] | ||||
Common stock shares issued | 1.3472 | |||
Common stock, par value | ||||
Common stock purchase price, per share | $ 15.30 | |||
Exercise price of common stock options excluded from share price | $ 51 |