Sterling Bancorp, Inc. (SBT) 10-Q 8 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 04, 2019
Document and Entity Information
Entity Registrant Name	Sterling Bancorp, Inc.
Entity Central Index Key	0001680379
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		50,203,081
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 146,246	$ 52,526
Interest-bearing time deposits with other banks	1,100	1,100
Investment securities	153,306	148,896
Mortgage loans held for sale	837	1,248
Loans, net of allowance for loan losses of $21,204 and $21,850	2,904,232	2,895,953
Accrued interest receivable	13,861	13,529
Mortgage servicing rights, net	9,910	10,633
Leasehold improvements and equipment, net	9,386	9,489
Operating lease right-of-use assets	19,662
Federal Home Loan Bank stock, at cost	22,950	22,950
Cash surrender value of bank-owned life insurance	31,761	31,302
Deferred tax asset, net	6,681	6,122
Other assets	2,298	3,026
Total assets	3,322,230	3,196,774
Liabilities:
Noninterest-bearing deposits	77,335	76,815
Interest-bearing deposits	2,494,510	2,375,870
Total deposits	2,571,845	2,452,685
Federal Home Loan Bank borrowings	229,000	293,000
Subordinated notes, net	65,140	65,029
Operating lease liabilities	20,804
Accrued expenses and other liabilities	84,064	51,003
Total liabilities	2,970,853	2,861,717
Shareholders' equity:
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding
Additional paid-in capital	13,138	12,713
Retained earnings	252,571	211,115
Accumulated other comprehensive income (loss)	153	(9)
Total shareholders' equity	351,377	335,057
Total liabilities and shareholders' equity	3,322,230	3,196,774
Common stock
Shareholders' equity:
Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 50,424,940 and 53,012,283 shares at September 30, 2019 and December 31, 2018, respectively	85,515	111,238
Total shareholders' equity	$ 85,515	$ 111,238

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Allowance for loan losses	$ 21,204	$ 21,850
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	50,424,940	53,012,283
Common stock, outstanding (in shares)	50,424,940	53,012,283

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income
Interest and fees on loans	$ 42,351	$ 40,772	$ 127,374	$ 115,752
Interest and dividends on investment securities and restricted stock	1,252	958	3,751	2,619
Other interest	608	166	1,060	399
Total interest income	44,211	41,896	132,185	118,770
Interest expense
Interest on deposits	12,249	8,628	34,429	22,396
Interest on Federal Home Loan Bank borrowings	777	1,297	3,207	3,464
Interest on subordinated notes	1,175	1,173	3,524	3,516
Total interest expense	14,201	11,098	41,160	29,376
Net interest income	30,010	30,798	91,025	89,394
Provision (recovery) for loan losses	251	423	(583)	2,184
Net interest income after provision (recovery) for loan losses	29,759	30,375	91,608	87,210
Non-interest income
Loss on sale of investment securities				(3)
Gain on sale of mortgage loans held for sale	194	129	374	222
Gain on sale of portfolio loans	1,683	2,876	5,985	11,885
Unrealized gains (losses) on equity securities	30	(31)	136	(125)
Net servicing income (loss)	240	291	(437)	1,001
Income on cash surrender value of bank-owned life insurance	324	299	949	889
Other	106	124	485	320
Total non-interest income	3,165	4,233	9,061	16,023
Non-interest expense
Salaries and employee benefits	7,545	6,973	22,193	20,851
Occupancy and equipment	2,126	1,760	6,533	4,916
Professional fees	1,389	898	3,455	2,344
Advertising and marketing	269	470	1,114	1,170
FDIC assessments		186	440	1,203
FDIC assessments	(5)
Data processing	271	311	882	894
Other	1,831	1,933	5,656	5,277
Total non-interest expense	13,426	12,531	40,273	36,655
Income before income taxes	19,498	22,077	60,396	66,578
Income tax expense	5,614	6,336	17,395	19,106
Net income	$ 13,884	$ 15,741	$ 43,001	$ 47,472
Income per share:
Basic (in dollars per share)	$ 0.28	$ 0.30	$ 0.84	$ 0.90
Diluted (in dollars per share)	$ 0.28	$ 0.30	$ 0.83	$ 0.90
Weighted average common shares outstanding:
Basic (in shares)	50,428,108	52,963,308	51,490,046	52,963,308
Diluted (in shares)	50,441,572	52,966,593	51,500,657	52,965,089
Service charges and fees
Non-interest income
Non-interest income	$ 111	$ 100	$ 327	$ 266
Investment management and advisory fees
Non-interest income
Non-interest income	$ 477	$ 445	$ 1,242	$ 1,568

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 13,884	$ 15,741	$ 43,001	$ 47,472
Other comprehensive income (loss), net of tax:
Unrealized gains (loss) on investment securities, arising during the period, net of tax effect of $(14), $5, $63, and $19, respectively	(35)	19	162	72
Reclassification adjustment for losses included in net income of $0, $0, $0, and $3, respectively, in loss on sale of investment securities, net of tax effect of $0, $0, $0, and $(1), respectively				2
Total other comprehensive income (loss)	(35)	19	162	74
Comprehensive income	$ 13,849	$ 15,760	$ 43,163	$ 47,546

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Comprehensive Income
Unrealized gains on investment securities, arising during the period, tax effect	$ (14)	$ 5	$ 63	$ 19
Reclassification adjustment for losses included in net income on sale of investment securities, before tax				3
Reclassification adjustment for losses included in net income on sale of investment securities, tax effect				$ (1)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at beginning of the period at Dec. 31, 2017	$ 111,238	$ 12,416	$ 149,816	$ (172)	$ 273,298
Balance at beginning of the period (in shares) at Dec. 31, 2017	52,963,308
Increase (Decrease) in Stockholders' Equity
Cumulative effect adjustment, reclassification of unrealized losses on equity securities			(50)	50
Net income			15,749		15,749
Stock-based compensation		9			9
Stock-based compensation (in shares)	39,655
Other comprehensive income (loss)				(13)	(13)
Dividends distributed ($0.01 per share)			(531)		(531)
Balance at end of the period at Mar. 31, 2018	$ 111,238	12,425	164,984	(135)	288,512
Balance at end of the period (in shares) at Mar. 31, 2018	53,002,963
Balance at beginning of the period at Dec. 31, 2017	$ 111,238	12,416	149,816	(172)	273,298
Balance at beginning of the period (in shares) at Dec. 31, 2017	52,963,308
Increase (Decrease) in Stockholders' Equity
Net income					47,472
Other comprehensive income (loss)					74
Balance at end of the period at Sep. 30, 2018	$ 111,238	12,604	195,649	(48)	319,443
Balance at end of the period (in shares) at Sep. 30, 2018	53,012,283
Balance at beginning of the period at Mar. 31, 2018	$ 111,238	12,425	164,984	(135)	288,512
Balance at beginning of the period (in shares) at Mar. 31, 2018	53,002,963
Increase (Decrease) in Stockholders' Equity
Net income			15,982		15,982
Stock-based compensation		76			76
Other comprehensive income (loss)				68	68
Dividends distributed ($0.01 per share)			(528)		(528)
Balance at end of the period at Jun. 30, 2018	$ 111,238	12,501	180,438	(67)	304,110
Balance at end of the period (in shares) at Jun. 30, 2018	53,002,963
Increase (Decrease) in Stockholders' Equity
Net income			15,741		15,741
Stock-based compensation		103			103
Stock-based compensation (in shares)	9,320
Other comprehensive income (loss)				19	19
Dividends distributed ($0.01 per share)			(530)		(530)
Balance at end of the period at Sep. 30, 2018	$ 111,238	12,604	195,649	(48)	319,443
Balance at end of the period (in shares) at Sep. 30, 2018	53,012,283
Balance at beginning of the period at Dec. 31, 2018	$ 111,238	12,713	211,115	(9)	335,057
Balance at beginning of the period (in shares) at Dec. 31, 2018	53,012,283
Increase (Decrease) in Stockholders' Equity
Net income			15,683		15,683
Repurchases of shares of common stock (Note 10)	$ (11,544)				(11,544)
Repurchases of shares of common stock (Note 10) (in shares)	(1,212,574)
Stock-based compensation		126			126
Stock-based compensation (in shares)	71,144
Other comprehensive income (loss)				106	106
Dividends distributed ($0.01 per share)			(526)		(526)
Balance at end of the period at Mar. 31, 2019	$ 99,694	12,839	226,272	97	338,902
Balance at end of the period (in shares) at Mar. 31, 2019	51,870,853
Balance at beginning of the period at Dec. 31, 2018	$ 111,238	12,713	211,115	(9)	335,057
Balance at beginning of the period (in shares) at Dec. 31, 2018	53,012,283
Increase (Decrease) in Stockholders' Equity
Net income					43,001
Repurchases of shares of common stock (Note 10)	$ (25,723)
Repurchases of shares of common stock (Note 10) (in shares)	(2,668,947)
Other comprehensive income (loss)					162
Balance at end of the period at Sep. 30, 2019	$ 85,515	13,138	252,571	153	351,377
Balance at end of the period (in shares) at Sep. 30, 2019	50,424,940
Balance at beginning of the period at Mar. 31, 2019	$ 99,694	12,839	226,272	97	338,902
Balance at beginning of the period (in shares) at Mar. 31, 2019	51,870,853
Increase (Decrease) in Stockholders' Equity
Net income			13,434		13,434
Repurchases of shares of common stock (Note 10)	$ (10,011)				(10,011)
Repurchases of shares of common stock (Note 10) (in shares)	(1,034,792)
Stock-based compensation		153			153
Stock-based compensation (in shares)	10,460
Other comprehensive income (loss)				91	91
Dividends distributed ($0.01 per share)			(516)		(516)
Balance at end of the period at Jun. 30, 2019	$ 89,683	12,992	239,190	188	342,053
Balance at end of the period (in shares) at Jun. 30, 2019	50,846,521
Increase (Decrease) in Stockholders' Equity
Net income			13,884		13,884
Repurchases of shares of common stock (Note 10)	$ (4,168)				(4,168)
Repurchases of shares of common stock (Note 10) (in shares)	(421,581)
Stock-based compensation		146			146
Other comprehensive income (loss)				(35)	(35)
Dividends distributed ($0.01 per share)			(503)		(503)
Balance at end of the period at Sep. 30, 2019	$ 85,515	$ 13,138	$ 252,571	$ 153	$ 351,377
Balance at end of the period (in shares) at Sep. 30, 2019	50,424,940

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Condensed Consolidated Statements of Changes in Shareholders' Equity
Dividends paid per common share (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows From Operating Activities
Net income	$ 43,001	$ 47,472
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (recovery) for loan losses	(583)	2,184
Deferred income taxes	(622)	(174)
Loss on sale of investment securities		3
Unrealized (gains) losses on equity securities	(136)	125
Accretion on investment securities, net	(1,273)	(514)
Depreciation and amortization of leasehold improvements and equipment	1,210	959
Amortization of intangible asset	338	338
Originations, net of principal payments, mortgage loans held for sale	(42,026)	(29,565)
Proceeds from sale of mortgage loans held for sale	42,375	27,623
Gain on sale of mortgage loans held for sale	(374)	(222)
Gain on sale of portfolio loans	(5,985)	(11,885)
Increase in cash surrender value of bank-owned life insurance, net of premiums	(459)	(466)
Valuation allowance adjustments and amortization of mortgage servicing rights	3,488	1,375
Stock-based compensation	425	188
Other	124	104
Change in operating assets and liabilities:
Accrued interest receivable	(332)	(1,594)
Other assets	4,170	(851)
Accrued expenses and other liabilities	30,443	24,795
Net cash provided by operating activities	73,784	59,895
Cash Flows From Investing Activities
Maturities and principal receipts of investment securities	114,433	57,891
Sales of investment securities		2,778
Purchases of investment securities	(117,209)	(76,091)
Loans originated, net of repayments	(177,470)	(547,298)
Proceeds from the sale of portfolio loans	173,397	352,141
Purchase of leasehold improvements and equipment	(1,107)	(2,956)
Net cash used in investing activities	(7,956)	(213,535)
Cash Flows From Financing Activities
Net increase in deposits	119,160	166,961
Proceeds from advances from Federal Home Loan Bank	2,461,000	4,275,000
Repayments of advances from Federal Home Loan Bank	(2,525,000)	(4,278,000)
Repurchases of shares of common stock	(25,723)
Dividends paid to shareholders	(1,545)	(1,589)
Net cash provided by financing activities	27,892	162,372
Net change in cash and due from banks	93,720	8,732
Cash and due from banks at beginning of period	52,526	40,147
Cash and due from banks at end of period	146,246	48,879
Cash paid:
Interest	29,667	23,568
Income taxes	15,946	18,500
Noncash investing and financing activities:
Transfers of residential real estate loans to mortgage loans held for sale	169,844	382,531
Transfers of residential real estate loans from mortgage loans held for sale	103	$ 39,210
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 740

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Nature of Operations and Basis of Presentation
Nature of Operations and Basis of Presentation	Note 1—Nature of Operations and Basis of Presentation Nature of Operations Sterling Bancorp, Inc. (the “Company”) is a unitary thrift holding company that was incorporated in 1989 and the parent company to its wholly owned subsidiary, Sterling Bank and Trust, F.S.B. (the “Bank”). The Company’s business is conducted through the Bank which was formed in 1984. The Bank originates construction, residential and commercial real estate loans, commercial lines of credit, and other consumer loans and provides deposit products, consisting primarily of checking, savings and term certificate accounts. The Bank operates through a network of 30 branches of which 26 branches are located in San Francisco and Los Angeles, California with the remaining branches located in New York, New York, Southfield, Michigan and the greater Seattle market. The Company is headquartered in Southfield, Michigan and its operations are in the financial services industry. Management evaluates the performance of its business based on one reportable segment, community banking. The Company is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve (“Federal Reserve”). The Bank is a federally chartered stock savings bank which is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency (“OCC”) of the U.S. Department of Treasury and the Federal Deposit Insurance Corporation (“FDIC”) and is a member of the Federal Home Loan Bank (“FHLB”) system. Basis of Presentation The condensed consolidated balance sheet as of September 30, 2019, and the condensed consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the three and nine months ended September 30, 2019 and 2018 are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, in the opinion of management, of a normal recurring nature that are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The financial data and other financial information disclosed in these notes to the condensed consolidated financial statements related to these periods are also unaudited. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019 or for any future annual or interim period. The consolidated balance sheet at December 31, 2018 included herein was derived from the audited consolidated financial statements as of that date. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

New Accounting Standards

New Accounting Standards	9 Months Ended
	Sep. 30, 2019
New Accounting Standards
New Accounting Standards	Note 2—New Accounting Standards Adoption of New Accounting Standard The Company has adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) and all subsequent amendments as of January 1, 2019. Topic 842 requires a lessee to recognize the following for all leases, except short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Topic 842 also requires expanded disclosures. Topic 842 permits entities to use a modified retrospective transition approach to apply the guidance as of the beginning of the earliest period presented in the financial statements in the period adopted or the optional transition method which allows entities to apply the new guidance at the adoption date and record a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, and not to restate the comparative periods presented. The Company adopted Topic 842 as of January 1, 2019 using the optional transition method. Therefore, the comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the standard resulted in the recognition of operating lease right-of-use assets of $21,812 and operating lease liabilities of $22,682 on the condensed consolidated balance sheet as of January 1, 2019. The operating lease right-of-use assets includes the impact of unamortized lease incentives and deferred rent. The Company elected to apply the package of practical expedients upon transition, which includes no reassessment of whether existing contracts are or contain leases and allowed for the lease classification for existing leases to be retained. The Company did not elect the practical expedient to use hindsight in determining the lease term. After transition, in certain instances, the cost of renewal options will be recognized earlier in the term of the lease than under the previous lease accounting rules. The Company elected the practical expedient to not separate non-lease components from the lease components contained in the operating lease agreements but instead to combine them and account for them as a single lease component and will continue to do so for its real estate operating leases. The new standard did not have a significant impact on the condensed consolidated statements of income or statements of cash flows in 2019. The Company’s operating leases are included in operating lease right-of-use assets and operating lease liabilities in the condensed consolidated balance sheet at September 30, 2019. The lessors’ rate implicit in the operating leases were not available to the Company and were not determinable from the terms of the leases. Therefore, the Company’s incremental borrowing rate was used in determining the present value of the future lease payments when measuring the operating lease liabilities. The incremental borrowing rates were not observable and therefore, the rates were estimated primarily using observable borrowing rates on the Company’s FHLB advances. The FHLB borrowing rates are generally for over collateralized advances for varying lengths of maturity. Therefore, the risk-free U.S. Government bond rate and high-credit quality unsecured corporate bond rates were also considered in estimating the incremental borrowing rates. The Company’s incremental borrowing rates were developed considering its monthly payment amounts and the initial terms of its leases. These incremental borrowing rates were applied to future lease payments in determining the present value of the operating lease liability for each lease. As stated, the comparative prior period information for the three and nine months ended September 30, 2018 has not been adjusted and continues to be reported under the Company’s historical lease recognition policies under Topic 840, Leases. The disclosure requirements of Topic 842 are included within Note 16, Operating Leases. Recently Issued Accounting Guidance Not Yet Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-13 , Fair Value Measurement (Topic 820) : Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements as follows: (1) removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the reporting entity’s policy for timing of transfers between levels; (2) removes the requirement to disclose the valuation processes for Level 3 fair value measurements; (3) clarifies that the measurement uncertainty disclosure for recurring Level 3 fair value measurements is to communicate information about the uncertainty in measurement as of the reporting date; (4) requires disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period; and (5) requires disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU No. 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. An entity is permitted to early adopt the provisions that remove or modify disclosures upon issuance of this ASU and delay adoption of the additional disclosures until the effective date. The adoption of the new guidance is not expected to have a material impact on the Company’s current fair value measurement disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, this guidance modifies the other-than-temporary impairment model for available for sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for a reversal of credit losses in future periods. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies and improves areas of guidance related to Topic 326. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief. The amendments provide entities with an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis, upon adoption of Topic 326. ASU No. 2016-13 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2019. At this time, the Company has formed a cross-functional implementation team consisting of individuals from credit, finance and information systems. The implementation team has been working with a software vendor to assist in implementing required changes to credit loss estimation models and processes. The historical data set for model development has been finalized, and the credit loss estimation models are in the process of being developed and tested. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings as of the beginning of the first reporting period in which ASU No. 2016-13 is effective. The Company has not yet determined the magnitude of any such one-time adjustment or the overall impact of ASU No. 2016-13 on its condensed consolidated financial statements. In October 2019, the FASB voted to issue an additional ASU to defer the effective dates of Topic 326 to January 1, 2023 for certain entities including smaller reporting companies (as defined by the U.S. Securities and Exchange Commission). The Company, as a smaller reporting company as of the relevant measuring period, would qualify for this extension. Management plans to delay the implementation of CECL beyond 2020 and adjust the timetable of different CECL implementation tasks. Management believes that the Company will benefit from additional time to run parallel testing and refine credit loss estimation models.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 3—Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“U.S. GAAP’). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates. Concentration of Credit Risk The loan portfolio consists primarily of residential real estate loans which are collateralized by real estate. At September 30, 2019 and December 31, 2018, residential real estate loans accounted for 86% and 84%, respectively, of the loan portfolio. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California which are dependent on the area economy for their livelihoods and servicing of their loan obligation. Approximately 90% and 94% of the loan portfolio was originated in California at September 30, 2019 and December 31, 2018, respectively. Reclassifications to Prior Periods’ Financial Statements Certain prior period amounts have been reclassified to conform with the current period presentation. Net servicing income (loss) has been reclassified from other non-interest income and reported separately on the condensed consolidated statements of income.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2019
Investment Securities
Investment Securities	Note 4—Investment Securities Debt Securities The following tables summarize the amortized cost and fair value of debt securities available for sale at September 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses: September 30, 2019 Amortized Gross Unrealized Fair Cost Gain Loss Value Available for sale: U.S. Treasury securities $ 147,363 $ 189 $ (4) $ 147,548 Collateralized mortgage obligations 1,236 45 — 1,281 Collateralized debt obligations 217 — (17) 200 Total $ 148,816 $ 234 $ (21) $ 149,029 December 31, 2018 Amortized Gross Unrealized Fair Cost Gain Loss Value Available for sale: U.S. Treasury securities $ 142,905 $ 9 $ (56) $ 142,858 Collateralized mortgage obligations 1,554 46 — 1,600 Collateralized debt obligations 308 — (11) 297 Total $ 144,767 $ 55 $ (67) $ 144,755 No securities of any single issuer, other than debt securities issued by the U.S. government were in excess of 10% of total shareholders’ equity as of September 30, 2019 and December 31, 2018. There were no sales of debt securities available for sale during the three and nine months ended September 30, 2019. The proceeds from sales of debt securities available for sale were zero and $2,778 for the three and nine months ended September 30, 2018. Gross realized losses on these sales were zero and $3 for the three and nine months ended September 30, 2018. The amortized cost and fair value of debt securities available for sale issued by U.S. Treasury at September 30, 2019 are shown below by contractual maturity. Collateralized mortgage obligations and collateralized debt obligations are disclosed separately in the table below as the expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value U.S. Treasury securities Due less than one year $ 127,566 $ 127,744 Due greater than one year 19,797 19,804 Collateralized mortgage obligations 1,236 1,281 Collateralized debt obligations 217 200 Total $ 148,816 $ 149,029 The table summarizes debt securities available for sale, at fair value, with unrealized losses at September 30, 2019 and December 31, 2018 aggregated by major security type and length of time the individual securities have been in a continuous unrealized loss position, as follows: September 30, 2019 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Treasury securities $ 19,912 $ (4) $ — $ — $ 19,912 $ (4) Collateralized debt obligations — — 200 (17) 200 (17) Total $ 19,912 $ (4) $ 200 $ (17) $ 20,112 $ (21) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Treasury securities $ 113,219 $ (56) $ — $ — $ 113,219 $ (56) Collateralized debt obligations — — 297 (11) 297 (11) Total $ 113,219 $ (56) $ 297 $ (11) $ 113,516 $ (67) As of September 30, 2019, the Company’s debt securities portfolio consisted of 8 debt securities, with 2 debt securities in an unrealized loss position. For debt securities in an unrealized loss position, management has both the intent and ability to hold these investments until the recovery of the decline; thus, the impairment was determined to be temporary. A collateralized debt obligation with a carrying value of $200 and $297 at September 30, 2019 and December 31, 2018, respectively, was rated high quality at inception, but it was subsequently rated by Moody’s as Ba1, which is defined as “speculative”. The issuers of the underlying collateral for the security are primarily banks. Management uses in-house and third party other-than-temporary impairment evaluation models to compare the present value of expected cash flows to the previous estimate to ensure there are no adverse changes in cash flows during the period. The other-than-temporary impairment model considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers. Assumptions used in the model include expected future default rates and prepayments. The collateralized debt obligation remained classified as available for sale and represented $17 and $11 of the unrealized losses reported at September 30, 2019 and December 31, 2018, respectively. Equity Securities Equity securities consist of an investment in a qualified community reinvestment act investment fund, which is a publicly-traded mutual fund, and an investment in Pacific Coast Banker’s Bank, a thinly traded, restricted stock. At September 30, 2019 and December 31, 2018, equity securities totaled $4,277 and $4,141, respectively. At September 30, 2019 and December 31, 2018, equity securities with readily determinable fair values were $4,031 and $3,895, respectively. The following is a summary of unrealized and realized gains and losses recognized in the condensed consolidated statements of income during the three and nine months ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net gains (losses) recorded during the period on equity securities $ 30 $ (31) $ 136 $ (125) Less: net gains (losses) recorded during the period on equity securities sold during the period — — — — Unrealized gains (losses) recorded during the period on equity securities held at the reporting date $ 30 $ (31) $ 136 $ (125) The Company has elected to account for its investment in a thinly traded, restricted stock using the measurement alternative for equity securities without readily determinable fair values. The investment was reported at $246 for both September 30, 2019 and December 31, 2018.

Loans

Loans	9 Months Ended
	Sep. 30, 2019
Loans
Loans	Note 5—Loans Major categories of loans were as follows: September 30, December 31, 2019 2018 Residential real estate $ 2,505,274 $ 2,452,441 Commercial real estate 224,570 250,955 Construction 171,051 176,605 Commercial lines of credit 24,512 37,776 Other consumer 29 26 Total loans 2,925,436 2,917,803 Less: allowance for loan losses (21,204) (21,850) Loans, net $ 2,904,232 $ 2,895,953 Loans with carrying values of $936,864 and $898,731 were pledged as collateral on FHLB borrowings at September 30, 2019 and December 31, 2018, respectively. The table presents the activity in the allowance for loan losses by portfolio segment for the three and nine months ending September 30, 2019 and 2018: Commercial Residential Commercial Lines of Other Three Months Ended September 30, 2019 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 12,758 $ 3,214 $ 3,067 $ 780 $ 1 $ 1,098 $ 20,918 Provision (recovery) for loan losses (321) 696 155 (193) — (86) 251 Charge offs — — — — — — — Recoveries 3 30 2 — — — 35 Total ending balance $ 12,440 $ 3,940 $ 3,224 $ 587 $ 1 $ 1,012 $ 21,204 Commercial Residential Commercial Lines of Other Nine Months Ended September 30, 2019 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 13,826 $ 2,573 $ 3,273 $ 1,058 $ 1 $ 1,119 $ 21,850 Provision (recovery) for loan losses (1,402) 1,275 (54) (295) — (107) (583) Charge offs — — — (176) — — (176) Recoveries 16 92 5 — — — 113 Total ending balance $ 12,440 $ 3,940 $ 3,224 $ 587 $ 1 $ 1,012 $ 21,204 Commercial Residential Commercial Lines of Other Three Months Ended September 30, 2018 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 12,675 $ 2,595 $ 3,211 $ 787 $ 1 $ 1,031 $ 20,300 Provision (recovery) for loan losses 28 — 110 181 — 104 423 Charge offs — — — — — — — Recoveries 6 31 5 — — — 42 Total ending balance $ 12,709 $ 2,626 $ 3,326 $ 968 $ 1 $ 1,135 $ 20,765 Commercial Residential Commercial Lines of Other Nine Months Ended September 30, 2018 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 12,279 $ 2,040 $ 2,218 $ 469 $ 1 $ 1,450 $ 18,457 Provision (recovery) for loan losses 421 484 1,095 499 — (315) 2,184 Charge offs (4) — — — — — (4) Recoveries 13 102 13 — — — 128 Total ending balance $ 12,709 $ 2,626 $ 3,326 $ 968 $ 1 $ 1,135 $ 20,765 The following tables present the balance in the allowance for loan losses and the recorded investment by portfolio segment and based on impairment method as of September 30, 2019 and December 31, 2018: Commercial Residential Commercial Lines of Other September 30, 2019 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 43 $ — $ — $ 5 $ — $ — $ 48 Collectively evaluated for impairment 12,397 3,940 3,224 582 1 1,012 21,156 Total ending allowance balance $ 12,440 $ 3,940 $ 3,224 $ 587 $ 1 $ 1,012 $ 21,204 Loans: Loans individually evaluated for impairment $ 219 $ 1,118 $ 4,503 $ 134 $ — $ — $ 5,974 Loans collectively evaluated for impairment 2,505,055 223,452 166,548 24,378 29 — 2,919,462 Total ending loans balance $ 2,505,274 $ 224,570 $ 171,051 $ 24,512 $ 29 $ — $ 2,925,436 Commercial Residential Commercial Lines of Other December 31, 2018 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 46 $ 30 $ 78 $ 195 $ — $ — $ 349 Collectively evaluated for impairment 13,780 2,543 3,195 863 1 1,119 21,501 Total ending allowance balance $ 13,826 $ 2,573 $ 3,273 $ 1,058 $ 1 $ 1,119 $ 21,850 Loans: Loans individually evaluated for impairment $ 228 $ 3,779 $ 7,412 $ 416 $ — $ — $ 11,835 Loans collectively evaluated for impairment 2,452,213 247,176 169,193 37,360 26 — 2,905,968 Total ending loans balance $ 2,452,441 $ 250,955 $ 176,605 $ 37,776 $ 26 $ — $ 2,917,803 The following tables present information related to impaired loans by class of loans as of and for the periods indicated: At September 30, 2019 At December 31, 2018 Unpaid Allowance Unpaid Allowance Principal Recorded for Loan Principal Recorded for Loan Balance Investment Losses Balance Investment Losses With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 127 $ 101 $ — $ — $ — $ — Commercial real estate: Retail 1,323 1,118 — 1,370 1,174 — Multifamily — — — 1,088 1,083 — Construction 4,504 4,503 — 4,751 4,751 — Commercial lines of credit, C&I lending — — — — — — Subtotal 5,954 5,722 — 7,209 7,008 — With an allowance for loan losses recorded: Residential real estate, first mortgage 117 118 43 254 228 46 Commercial real estate, offices — — — 1,530 1,522 30 Construction — — — 2,661 2,661 78 Commercial lines of credit: Private banking 134 134 5 316 316 95 C&I lending — — — 100 100 100 Subtotal 251 252 48 4,861 4,827 349 Total $ 6,205 $ 5,974 $ 48 $ 12,070 $ 11,835 $ 349 In the above table, the unpaid principal balance is not reduced for partial charge offs. Also, the recorded investment excludes accrued interest receivable on loans which was not significant. Three Months Ended September 30, 2019 September 30, 2018 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Recognized Investment Recognized Recognized With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 102 $ — $ — $ — $ — $ — Commercial real estate: Retail 1,127 16 10 1,202 16 11 Multifamily — — — 1,091 12 8 Construction 6,492 58 52 4,732 97 48 Commercial lines of credit, C&I lending 67 1 1 — — — Subtotal 7,788 75 63 7,025 125 67 With an allowance for loan losses recorded: Residential real estate, first mortgage 118 1 1 121 1 1 Commercial real estate, offices — — — 1,532 24 15 Construction — — — 2,661 55 37 Commercial lines of credit: Private banking 135 1 1 325 3 2 C&I lending — — — 100 1 1 Subtotal 253 2 2 4,739 84 56 Total $ 8,041 $ 77 $ 65 $ 11,764 $ 209 $ 123 Nine Months Ended September 30, 2019 September 30, 2018 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Recognized Investment Recognized Recognized With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 105 $ — $ — $ — $ — $ — Commercial real estate: Retail 1,146 46 41 1,220 48 43 Multifamily 598 12 12 725 24 20 Offices 504 25 25 — — — Construction 8,274 376 370 2,996 196 147 Commercial lines of credit, C&I Lending 89 5 5 — — — Subtotal 10,716 464 453 4,941 268 210 With an allowance for loan losses recorded: Residential real estate, first mortgage 119 4 3 121 4 3 Commercial real estate, offices — — — 1,541 67 59 Construction — — — 1,774 107 89 Commercial lines of credit: Private banking 137 5 5 331 14 13 C&I lending — — — 67 3 3 Subtotal 256 9 8 3,834 195 167 Total $ 10,972 $ 473 $ 461 $ 8,775 $ 463 $ 377 Also presented in the table above is the average recorded investment of the impaired loans and the related amount of interest recognized during the time within the period that the loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. The average balances are calculated based on the month-end balances of the loans for the period reported. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Loans Past Loans Past Due Over Due Over 90 Days Still 90 Days Still Nonaccrual Accruing Nonaccrual Accruing Residential real estate: Residential first mortgage $ 6,417 $ 55 $ 4,360 $ 80 Commercial real estate: Retail 45 — 60 — Construction 3,457 — — — Total $ 9,919 $ 55 $ 4,420 $ 80 The following tables present the aging of the recorded investment in past due loan by class of loans as of September 30, 2019 and December 31, 2018: Greater 30 - 59 60 - 89 than Days Days 89 Days Total Loans Not September 30, 2019 Past Due Past Due Past Due Past Due Past Due Total Residential real estate: Residential first mortgage $ 8,930 $ 284 $ 6,472 $ 15,686 $ 2,465,981 $ 2,481,667 Residential second mortgage 210 309 — 519 23,088 23,607 Commercial real estate: Retail — — 45 45 6,170 6,215 Multifamily — — — — 59,889 59,889 Offices — — — — 28,208 28,208 Hotel/Single-room occupancy hotels — — — — 81,529 81,529 Industrial — — — — 14,211 14,211 Other — — — — 34,518 34,518 Construction — — 3,457 3,457 167,594 171,051 Commercial lines of credit: Private banking — — — — 12,138 12,138 C&I lending 4,996 — — 4,996 7,378 12,374 Other consumer — — — — 29 29 Total $ 14,136 $ 593 $ 9,974 $ 24,703 $ 2,900,733 $ 2,925,436 Greater 30 - 59 60 - 89 than Days Days 89 Days Total Loans Not December 31, 2018 Past Due Past Due Past Due Past Due Past Due Total Residential real estate: Residential first mortgage $ 3,110 $ 1,257 $ 4,440 $ 8,807 $ 2,421,190 $ 2,429,997 Residential second mortgage 377 295 — 672 21,772 22,444 Commercial real estate: Retail — — 60 60 9,957 10,017 Multifamily — — — — 64,638 64,638 Offices — — — — 27,670 27,670 Hotel/Single-room occupancy hotels — — — — 101,414 101,414 Industrial — — — — 14,756 14,756 Other — — — — 32,460 32,460 Construction 1,971 — — 1,971 174,634 176,605 Commercial lines of credit: Private banking 176 — — 176 15,762 15,938 C&I lending — — — — 21,838 21,838 Other consumer — — — — 26 26 Total $ 5,634 $ 1,552 $ 4,500 $ 11,686 $ 2,906,117 $ 2,917,803 The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which is presented above, and by payment activity. The Company reviews the status of nonperforming loans which include loans 90 days past due and still accruing and nonaccrual loans. Troubled Debt Restructurings At September 30, 2019 and December 31, 2018, the balance of outstanding loans identified as troubled debt restructurings was $2,517 and $5,826, respectively. The allowance for loan losses on these loans was $48 and $261 at September 30, 2019 and December 31, 2018, respectively. There were no loans identified as troubled debt restructurings that subsequently defaulted. During the nine months ended September 30, 2019, the terms of a construction loan was modified by providing for an extension of the maturity dates at the contract’s existing rate of interest, which is lower than the current market rate for new debt with similar risk. The total outstanding recorded investments was $1,046 both before and after modification. During the nine months ended September 30, 2018, the Company modified the terms of a construction loan and a commercial and industrial loan by providing for an extension of the maturity dates by 7 months at the contract’s existing rate of interest, which is lower than the current market rate for new debt with similar risk. The total outstanding recorded investment was $2,761 both before and after modification. The effect of these modifications on the allowance for loan losses was not significant. The terms of certain other loans have been modified during the nine months ended September 30, 2019 and 2018 that did not meet the definition of a troubled debt restructuring. These other loans that were modified were not considered significant. Credit Quality 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, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans such as residential real estate and consumer loans and non-homogeneous loans, such as commercial lines of credit, construction and commercial real estate loans. This analysis is performed monthly. The Company uses the following definitions for risk ratings: Pass: Loans are of satisfactory quality. 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 Company’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 Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. At September 30, 2019 and December 31, 2018, the risk rating of loans by class of loans was as follows: Special September 30, 2019 Pass Mention Substandard Doubtful Total Residential real estate: Residential first mortgage $ 2,475,200 $ — $ 2,191 $ 4,276 $ 2,481,667 Residential second mortgage 23,607 — — — 23,607 Commercial real estate: Retail 4,259 838 1,118 — 6,215 Multifamily 56,614 1,709 1,566 — 59,889 Offices 25,269 — 2,939 — 28,208 Hotel/Single-room occupancy hotels 69,479 8,532 3,518 — 81,529 Industrial 14,211 — — — 14,211 Other 27,021 925 6,572 — 34,518 Construction 156,119 — 14,932 — 171,051 Commercial lines of credit: Private banking 12,138 — — — 12,138 C&I lending 8,702 — 3,672 — 12,374 Other consumer 29 — — — 29 Total $ 2,872,648 $ 12,004 $ 36,508 $ 4,276 $ 2,925,436 Special December 31, 2018 Pass Mention Substandard Doubtful Total Residential real estate: Residential first mortgage $ 2,425,584 $ — $ 4,193 $ 220 $ 2,429,997 Residential second mortgage 22,444 — — — 22,444 Commercial real estate: Retail 8,843 — 1,174 — 10,017 Multifamily 63,555 — 1,083 — 64,638 Offices 27,670 — — — 27,670 Hotel/Single-room occupancy hotels 101,414 — — — 101,414 Industrial 14,756 — — — 14,756 Other 31,451 — 1,009 — 32,460 Construction 158,489 8,733 9,383 — 176,605 Commercial lines of credit: Private banking 15,762 — 176 — 15,938 C&I lending 17,785 — 4,053 — 21,838 Other consumer 26 — — — 26 Total $ 2,887,779 $ 8,733 $ 21,071 $ 220 $ 2,917,803 The Bank sold pools of residential real estate mortgages for $51,591 and $82,464 during the three months ended September 30, 2019 and 2018, respectively, and $173,397 and $352,141 during the nine months ended September 30, 2019 and 2018, respectively, to third-party investors. The transactions resulted in full derecognition of the mortgages (i.e. transferred assets) from the condensed consolidated balance sheets and recognition of gain on sale of portfolio loans of $1,683 and $2,876 for the three months ended September 30, 2019 and 2018, respectively, and $5,985 and $11,885 for the nine months ended September 30, 2019 and 2018, respectively. After the sales, the Bank’s only continuing involvement in the transferred assets is to act as servicer or subservicer of the mortgages.

Mortgage Servicing Rights, Net

Mortgage Servicing Rights, Net	9 Months Ended
	Sep. 30, 2019
Mortgage Servicing Rights, Net
Mortgage Servicing Rights, Net	Note 6—Mortgage Servicing Rights, Net The Bank records servicing assets from the sale of mortgage loans to the secondary market for which servicing has been retained. Residential real estate mortgage loans serviced for others are not included in the condensed consolidated balance sheets. The principal balance of these loans at September 30, 2019 and December 31, 2018 are as follows: September 30, December 31, 2019 2018 Residential real estate mortgage loan portfolios serviced for: FNMA $ 111,473 $ 85,364 FHLB 88,343 92,229 Private investors 703,358 713,095 Custodial escrow balances maintained with these serviced loans were $19,718 and $13,593 at September 30, 2019 and December 31, 2018, respectively. Activity for mortgage servicing rights and the related valuation allowance are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Mortgage servicing rights: Beginning of period $ 11,073 $ 9,313 $ 10,733 $ 6,706 Additions 903 703 2,765 4,290 Amortization (666) (580) (2,188) (1,560) End of period 11,310 9,436 11,310 9,436 Valuation allowance at beginning of period 1,301 18 100 210 Additions (recoveries) 99 7 1,300 (185) Valuation allowance at end of period 1,400 25 1,400 25 Mortgage servicing rights, net $ 9,910 $ 9,411 $ 9,910 $ 9,411 Servicing fee income, net of amortization of servicing rights and changes in the valuation allowance, was $240 and $291 for the three months ended September 30, 2019 and 2018, respectively, and $(437) and $1,001 for the nine months ended September 30, 2019 and 2018, respectively. The fair value of mortgage servicing rights was $10,313 and $11,523 at September 30, 2019 and December 31, 2018, respectively. The fair value of mortgage servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the estimate of the fair value of mortgage servicing rights. The fair value at September 30, 2019 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds ranging from 6.9% to 46.9%, depending on the stratification of the specific right, and a weighted average default rate of 0.2%. The fair value at December 31, 2018 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds ranging from 6.8% to 33.6%, depending on the stratification of the specific right, and a weighted average default rate of 0.2%. At September 30, 2019 and December 31, 2018, the carrying amount of certain individual groupings exceeded their fair values. See Note 13.

Deposits

Deposits	9 Months Ended
	Sep. 30, 2019
Deposits
Deposits	Note 7—Deposits Time deposits, included in interest‑bearing deposits, were $1,216,992 and $894,279 at September 30, 2019 and December 31, 2018, respectively. Time deposits includes brokered deposits of $25,000 and $33,750 at September 30, 2019 and December 31, 2018, respectively. Time deposits that meet or exceed the FDIC insurance limit of $250 were $333,050 and $208,888 at September 30, 2019 and December 31, 2018, respectively.

Federal Home Loan Bank Borrowin

Federal Home Loan Bank Borrowings	9 Months Ended
	Sep. 30, 2019
Federal Home Loan Bank Borrowings
Federal Home Loan Bank Borrowings	Note 8—Federal Home Loan Bank Borrowings Federal Home Loan Bank borrowings at September 30, 2019 and December 31, 2018 consist of the following: September 30, December 31, 2019 Interest Rates 2018 Interest Rates Short-term fixed rate advances $ — — $ 103,000 2.60% Long-term fixed rate advances 229,000 1.07%-1.96% 190,000 0.98%-1.18% Total FHLB advances $ 229,000 $ 293,000 FHLB Advances The long-term fixed rate advances have maturity dates ranging from July 2020 to May 2029. Interest on advances is payable monthly and each advance is payable at its maturity date, and may contain a prepayment penalty if paid before maturity. At September 30, 2019, advances totaling $207,000 were callable by the FHLB as follows: $67,000 in September 2021; $90,000 in October 2021; and $50,000 in May 2024. At September 30, 2019, the Bank had additional borrowing capacity of $376,353 from the FHLB. FHLB Overdraft Line of Credit The Bank has established an overdraft line of credit agreement with the FHLB providing maximum borrowings of $50,000. The average amount outstanding during the nine months ended September 30, 2019 and 2018 was $2,566 and $4,246, respectively. At September 30, 2019 and December 31, 2018, there were no outstanding borrowings under this agreement. Borrowings accrue interest based on a variable rate based on the FHLB’s overnight cost of funds rate, which was 2.33% and 2.87% at September 30, 2019 and December 31, 2018, respectively. The agreement has a one-year term and was renewed in October 2019 on substantially the same terms until October 2020. The FHLB advances and the overdraft line of credit are collateralized by pledged loans totaling $936,864 and $898,731 at September 30, 2019 and December 31, 2018, respectively. Other Borrowings The Company had available credit lines with other banks totaling $70,000 at September 30, 2019 and December 31, 2018. There were no borrowings under these credit lines during the nine months ended September 30, 2019 and the year ended December 31, 2018.

Subordinated Notes, Net

Subordinated Notes, Net	9 Months Ended
	Sep. 30, 2019
Subordinated Notes, Net
Subordinated Notes, Net	Note 9—Subordinated Notes, Net The subordinated notes (“Notes”) were as follows: September 30, December 31, 2019 2018 7.0% fixed to floating rate subordinated notes $ 65,000 $ 65,000 Unamortized note premium 489 533 Unamortized debt issuance costs (349) (504) Total $ 65,140 $ 65,029 The Notes bear interest at 7% per annum, payable semi-annually on April 15 and October 15 in arrears, through April 2021 after which the Notes will have a variable interest rate of the three-month LIBOR rate plus a margin of 5.82%. Premiums and debt issuance costs are amortized over the contractual term of the Notes into interest expense using the effective interest method. Interest expense on these Notes was $1,175 and $1,173 for the three months ended September 30, 2019 and 2018, respectively, and $3,524 and $3,516 for the nine months ended September 30, 2019 and 2018, respectively. The Notes mature in April 2026. On or after April 14, 2021, the Company may redeem the Notes, in whole or in part, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued interest, in a principal amount with integral multiples of $1. The Notes are not redeemable by the Company prior to April 14, 2021 except in the event that (i) the Notes no longer qualify as Tier 2 Capital, (ii) the interest on the Notes is determined by law to be not deductible for Federal Income Tax reporting or (iii) the Company is considered an investment company pursuant to the Investment Company Act of 1940. The Notes are not subject to redemption by the noteholder. The Notes are unsecured obligations and are subordinated in right of payment to all existing and future indebtedness, deposits and other liabilities of the Company’s current and future subsidiaries, including the Bank’s deposits as well as the Company’s subsidiaries liabilities to general creditors and liabilities arising during the ordinary course of business. The Notes may be included in Tier 1 capital of the Bank and Tier 2 capital for the Company under current regulatory guidelines and interpretations. As long as the Notes are outstanding, the Company is permitted to pay dividends if prior to such dividends, the Bank is considered well capitalized, as defined in Note 14, Regulatory Capital Requirements.

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Sep. 30, 2019
Stock Repurchase Program.
Stock Repurchase Program	Note 10—Stock Repurchase Program In late 2018, the board of directors approved the repurchase of up to $50,000 of the Company’s outstanding shares of common stock. The stock repurchase program permits the Company to purchase shares of its common stock from time to time in the open market or in privately negotiated transactions. The program does not have an expiration date. The Company received regulatory approval of its stock repurchase program and publicly announced the program in January 2019. Under this program, the Company is not obligated to repurchase shares of its common stock. The repurchased shares will be canceled and returned to authorized but unissued status. During the three months ended September 30, 2019, the Company repurchased and cancelled 421,581 shares of its common stock for $4,168, including commissions and fees (average repurchase price of $9.89 per share). During the nine months ended September 30, 2019, the Company repurchased and cancelled 2,668,947 shares of its common stock for $25,723, including commissions and fees (average repurchase price of $9.64 per share). Such repurchases of common stock were funded through cash generated from operations. As of September 30, 2019, the Company had $24,277 of common stock purchases remaining that may be made under the program.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2019
Stock-based Compensation
Stock-based Compensation	Note 11—Stock-based Compensation The board of directors established a 2017 Omnibus Equity Incentive Plan (the “Plan”) which was approved by the shareholders. The Plan provides for the grant of up to 4,237,100 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards for issuance to employees, consultants and board of directors of the Company. The stock-based awards are issued at no less than the market price on the date the awards are granted. Stock Options Stock option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant. The stock option awards generally vest in installments of 50% in each of the third and fourth year after the date of grant and have a maximum term of ten years. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted below. Estimating the grant date fair values for employee stock options requires management to make assumptions regarding expected volatility of the value of those underlying shares, the risk-free rate over the expected life of the stock options and the date on which stock-based payments will be settled. Expected volatilities are based on a weighted average of the Company’s historic volatility and an implied volatility for a group of industry-relevant bank holding companies as of the measurement date. The expected term of options granted is calculated using the simplified method (the midpoint between the end of the vesting period and the end of the maximum term). The risk-free rate for the expected term of the option is based upon U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield represents what the Company anticipates will be declared during the expected term of the options. On March 1, 2019, the board of directors approved the issuance of options to purchase 84,889 shares of common stock with an exercise price of $10.12 to certain key employees which are accounted for as equity awards. These options to purchase shares of common stock had a weighted average grant-date fair value of $3.20 per option. The grant-date fair value of each stock option award is estimated using the Black-Scholes option pricing model that uses the assumptions set forth in the following table: Exercise price of options $ 10.12 Risk-free interest rate 2.66 % Expected term (in years) Expected stock price volatility 26.26 % Dividend yield .40 % A summary of the stock option activity as of and for the nine months ended September 30, 2019 is as follows: Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic of Shares Price Term Value (Years) Outstanding at January 1, 2019 92,625 $ 13.73 $ — Granted 84,889 10.12 Exercised — — Forfeited (3,000) 13.73 Outstanding at September 30, 2019 174,514 $ 11.97 $ — The Company recorded stock-based compensation expense associated with stock options of $43 and $27 for the three months ended September 30, 2019 and 2018, respectively, and $114 and $56 for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019, there was $484 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.93 years. No options are exercisable at September 30, 2019. Restricted Stock Awards On March 1, 2019, the board of directors approved the issuance of 71,144 restricted stock awards to certain key employees. The restricted stock awards vest in installments of 50% in each of the third and fourth year after the date of grant. On May 23, 2019, the board of directors approved an additional issuance of 10,460 restricted stock awards to non-employee directors that vest on the first anniversary of the grant date. Upon a change in control, as defined in the Plan, the outstanding restricted stock awards will immediately vest. The value of a restricted stock award is based on the market value of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested. A summary of the restricted stock awards activity as of and for the nine months ended September 30, 2019 is as follows: Weighted Average Number Grant Date Fair of Shares Value Nonvested at January 1, 2019 48,975 $ 13.55 Granted 81,604 9.91 Vested (15,875) 13.50 Forfeited — — Nonvested at September 30, 2019 114,704 $ 10.97 The fair value of the award is recorded as compensation expense on a straight-line basis over the vesting period. The Company recorded stock-based compensation expense associated with restricted stock awards of $103 and $76 for the three months ended September 30, 2019 and 2018, respectively, and $311 and $132 for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019, there was $947 of total unrecognized compensation cost related to the nonvested stock granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.95 years.

Income Per Share

Income Per Share	9 Months Ended
	Sep. 30, 2019
Income Per Share
Income Per Share	Note 12—Income Per Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per common share further includes any common shares available to be issued upon the exercise of outstanding stock options and restricted stock awards if such inclusions would be dilutive. The Company determines the potentially dilutive common shares using the treasury stock method. The following table presents the computation of income per share, basic and diluted: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator: Net income $ 13,884 $ 15,741 $ 43,001 $ Denominator: Weighted average common shares outstanding, basic 50,428,108 52,963,308 51,490,046 52,963,308 Weighted average effect of potentially dilutive common shares: Stock options — — — — Restricted stock 13,464 3,285 10,611 1,781 Weighted average common shares outstanding, diluted 50,441,572 52,966,593 51,500,657 52,965,089 Income per share: Basic $ 0.28 $ 0.30 $ 0.84 $ 0.90 Diluted $ 0.28 $ 0.30 $ 0.83 $ 0.90 The weighted average effect of certain stock options and nonvested restricted stock were excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive, are summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Stock options 174,514 92,625 175,514 92,625 Restricted stock — — 38,235 — Total 174,514 92,625 213,749 92,625

Fair Values of Financial Instru

Fair Values of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 13—Fair Values of Financial Instruments Financial instruments include assets carried at fair value, as well as certain assets and liabilities carried at cost or amortized cost but disclosed at fair value in these condensed consolidated financial statements. Fair value is defined as the exit price, the price that would be received for an asset or paid to transfer a liability in the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following methods and significant assumptions are used to estimate fair value: Investment Securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar investment securities (Level 2). For investment securities where quoted prices or market prices of similar investment securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using spread to LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the analysis. Rating agency and industry research reports as well as defaults and deferrals on individual investment securities are reviewed and incorporated into the calculations. Impaired Loans The fair value of collateral dependent impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach, such as comparable sales or income approach, or a combination of both. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by us. Once received, an appraisal compliance review is completed in accordance with regulatory guidelines. Mortgage Servicing Rights Fair value of mortgage servicing rights is initially determined at the individual grouping level based on an internal valuation model that calculates the present value of estimated future net servicing income. On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon third party valuations obtained. As disclosed in Note 6, the valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income (Level 3). Assets Measured at Fair Value on a Recurring Basis The table below presents the assets measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset at September 30, 2019 and December 31, 2018: Fair Value Measurements at September 30, 2019 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Financial Assets Available for sale debt securities: U.S. Treasury securities $ 147,548 $ 147,548 $ — $ — Collateralized mortgage obligations 1,281 — 1,281 — Collateralized debt obligations 200 — — 200 Equity securities 4,031 4,031 — — Fair Value Measurements at December 31, 2018 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Financial Assets Available for sale debt securities: U.S. Treasury securities $ 142,858 $ 142,858 $ — $ — Collateralized mortgage obligations 1,600 — 1,600 — Collateralized debt obligations 297 — — 297 Equity securities 3,895 3,895 — — There were no transfers between Level 1 and Level 2 during the nine-month period ending September 30, 2019 or 2018. The table below presents a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at September 30, 2019 and December 31, 2018: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Investment Securities September 30, 2019 December 31, 2018 Collateralized Debt Collateralized Debt Obligations Obligations Balance of recurring Level 3 assets at January 1, $ 297 $ 571 Total gains or losses (realized/unrealized): Included in income-realized — — Included in other comprehensive income (loss) (6) 24 Principal maturities/settlements (91) (298) Sales — — Transfers in and/or out of Level 3 — — Balance of recurring Level 3 assets at end of period $ 200 $ 297 Unrealized losses on Level 3 investments for collateralized debt obligations was $17 at September 30, 2019. In addition to the amounts included in income for the nine months ended September 30, 2019 as presented in the table above, interest income recorded on collateralized debt obligations was $10. Unrealized losses on Level 3 investments for collateralized debt obligations were $11 at December 31, 2018. In addition to the amounts included in income for the year ended December 31, 2018 as presented in the table above, interest income recorded on collateralized debt obligations was $16. The fair value of the collateralized debt obligations is obtained from third party pricing information. It is determined by calculating discounted cash flows using LIBOR curves plus spreads that adjust for credit risk and illiquidity. The Company also performs an internal analysis that considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers to collaborate the information used from the independent third party. Assets Measured at Fair Value on a Non‑Recurring Basis From time to time, the Bank may be required to measure certain other assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held in the condensed consolidated balance sheet at September 30, 2019 and December 31, 2018, the following table provides the level of valuation assumptions used to determine each adjustment and the related carrying value: Fair Value Measurements at September 30, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Mortgage servicing rights $ 8,005 $ — $ — $ 8,005 Fair Value Measurements at December 31, 2018 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Impaired loans: Construction $ 2,583 $ — $ — $ 2,583 Residential real estate 108 — — 108 Mortgage servicing rights 1,858 — — 1,858 As discussed previously, the fair values of collateral dependent impaired loans carried at fair value are determined by third-party appraisals. Management adjusts these appraised values based on the age of the appraisal and the type of the property. The following table presents quantitative information about Level 3 fair value measurements for the financial instruments measured at fair value on a nonrecurring basis at September 30, 2019 and December 31, 2018: Quantitative Information about Level 3 Fair Value Measurements at September 30, 2019 Fair Value Valuation Technique Unobservable Inputs Mortgage servicing rights $ 8,005 Discounted cash flow Discount rate 9.5% - 12.0% Prepayment speed 7.6% - 46.9% Weighted average default rate 0.2% Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Impaired loans: Construction $ 2,583 Sales comparison approach Management discount for 10% property type and recent market volatility Residential real estate 108 Sales comparison approach Management discount for 10% property type and recent market volatility Mortgage servicing rights 1,858 Discounted cash flow Discount rate 9.5% - 12.0% Prepayment speed 7.0% - 33.6% Weighted average default rate 0.2% Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value at September 30, 2019 and December 31, 2018, are as follows: Fair Value Measurements at September 30, 2019 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 146,246 $ 146,246 $ 146,246 $ — $ — Interest-bearing time deposits with other banks 1,100 1,100 — 1,100 — Mortgage loans held for sale 837 837 — 837 — Loans, net 2,904,232 2,971,238 — — 2,971,238 Financial Liabilities Time deposits 1,216,992 1,224,307 — 1,224,307 — Federal Home Loan Bank borrowings 229,000 228,550 — 228,550 — Subordinated notes, net 65,140 68,088 — 68,088 — Fair Value Measurements at December 31, 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 52,526 $ 52,526 $ 52,526 $ — $ — Interest-bearing time deposits with other banks 1,100 1,100 1,100 — — Mortgage loans held for sale 1,248 1,261 — 1,261 — Loans, net 2,893,262 2,987,419 — — 2,987,419 Financial Liabilities Time deposits 894,279 890,020 — 890,020 — Federal Home Loan Bank borrowings 293,000 285,265 — 285,265 — Subordinated notes, net 65,029 65,650 — 65,650 —

Regulatory Capital Requirements

Regulatory Capital Requirements	9 Months Ended
	Sep. 30, 2019
Regulatory Capital Requirements
Regulatory Capital Requirements	Note 14—Regulatory Capital Requirements The Bank is subject to the capital adequacy requirements of the OCC. The Company, as a thrift holding company, is subject to the capital adequacy requirements of the Federal Reserve. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off‑balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors, and the regulators could lower classifications in certain cases. Prompt corrective action provisions are not applicable to thrift holding companies. Failure to meet minimum capital requirements can initiate regulatory action that could have a direct material effect on the condensed consolidated financial statements. Prompt corrective action regulations provide five classifications, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. Under the Basel III rules, the Company must hold a capital conservation buffer over the adequately capitalized risk-based capital ratios. The capital conservation buffer was 2.50% starting January 1, 2019. The net unrealized gain or loss on investment securities is not included in regulatory capital. Starting January 1, 2019, banking organizations are required to maintain a minimum total capital ratio of 10.5%, a minimum Tier 1 capital ratio of 8.5% and a minimum common equity Tier 1 capital ratio minimums of 7.0%, respectively. Management believes that at September 30, 2019, the Company and the Bank have met all regulatory capital requirements. At September 30, 2019 and December 31, 2018, the Bank exceeded all capital requirements to be categorized as well-capitalized and the Company exceeded the Capital Adequacy requirements as presented below. The Company and the Bank’s actual and minimum required capital amounts and ratios, with such regulatory minimum not including the capital conservation buffer, at September 30, 2019 and December 31, 2018 are as follows: For Capital Adequacy To be Well Actual Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2019 Total adjusted capital to risk-weighted assets Consolidated $ 437,455 22.64 % $ 154,555 8.00 % N/A N/A Bank 356,776 18.47 154,531 8.00 $ 193,164 10.00 % Tier 1 (core) capital to risk-weighted assets Consolidated 351,111 18.17 115,916 6.00 N/A N/A Bank 335,572 17.37 115,898 6.00 154,531 8.00 Common Equity Tier 1 (CET1) Consolidated 351,111 18.17 86,937 4.50 N/A N/A Bank 335,572 17.37 86,924 4.50 125,556 6.50 Tier 1 (core) capital to adjusted tangible assets Consolidated 351,111 10.54 133,246 4.00 N/A N/A Bank 335,572 10.07 133,245 4.00 166,556 5.00 For Capital Adequacy To be Well Actual Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total adjusted capital to risk-weighted assets Consolidated $ 421,495 21.98 % $ 153,426 8.00 % N/A N/A Bank 324,905 16.94 153,403 8.00 $ 191,754 10.00 % Tier 1 (core) capital to risk-weighted assets Consolidated 334,616 17.45 115,069 6.00 N/A N/A Bank 303,055 15.80 115,052 6.00 153,403 8.00 Common Equity Tier 1 (CET1) Consolidated 334,616 17.45 86,302 4.50 N/A N/A Bank 303,055 15.80 86,289 4.50 124,640 6.50 Tier 1 (core) capital to adjusted tangible assets Consolidated 334,616 10.42 128,431 4.00 N/A N/A Bank 303,055 9.44 128,430 4.00 160,538 5.00 Dividend Restrictions As noted above, banking regulations require the Bank to maintain certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to its shareholders. The Company’s principal source of funds for dividend payments is dividends received from the Bank and banking regulations limit the dividends that may be paid. Approval by regulatory authorities is required if the total capital distributions for the applicable calendar year exceed the sum of the Bank’s net income for that year to date plus the Bank’s retained net income for the preceding two years, or the Bank would not be at least adequately capitalized following the distribution. The Qualified Thrift Lender (“QTL”) test requires that a minimum of 65% of assets be maintained in housing‑related finance and other specified areas. If the QTL test is not met, limits are placed on growth, branching, new investments, FHLB Advances and dividends, or the Bank must convert to a commercial bank charter. Management believes that the QTL test has been met. Also, pursuant to the terms of the subordinated note agreements, the Company may pay dividends if it is “well capitalized” as defined by regulatory guidelines. At September 30, 2019, the Bank has the ability to pay aggregate dividends of approximately $120,616 to the Company without prior regulatory approval.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions
Related Party Transactions	Note 15—Related Party Transactions From time to time, the Company makes charitable contributions to a foundation which certain members of the board of directors of the Company and Bank, and whom are also related to the Company’s principal shareholder, serve as trustees of the foundation. The Company paid $225 to the foundation during the three months ended September 30, 2019 and 2018, and $675 during the nine months ended September 30, 2019 and 2018. The Bank provides monthly data processing and programming services to entities controlled by the Company’s principal shareholders. Aggregate fees received amounted to $29 and $33 during the three months ended September 30, 2019 and 2018, respectively, and $81 and $87 during the nine months ended September 30, 2019 and 2018, respectively. Related party leases are disclosed in Note 16, Operating Leases.

Operating Leases

Operating Leases	9 Months Ended
	Sep. 30, 2019
Operating Leases
Operating Leases	Note 16—Operating Leases The Company leases its corporate headquarters and branch offices through noncancelable operating lease contracts. Such noncancelable operating lease contracts convey the right to control such real estate for a period of time in exchange for consideration. The operating leases have remaining terms ranging from 2019 to 2029, and generally have options to extend for one or two five-year periods. Beginning in 2019, the lease term may include options to extend the lease when it is reasonably certain that the option will be exercised based on the facts and circumstances at lease commencement. The lease agreements, most often, provide for rental payments that increase over the lease term based on a fixed percentage or based on a specified consumer price index. Any changes in the consumer price index after the lease commencement date are considered variable lease payments and recorded in the period when incurred. Additionally, the Company, in most cases, is required to pay insurance costs, real estate taxes and other operating expenses such as common area maintenance. The Company leases certain storage and office space from entities owned by the Company’s principal shareholders. Amounts paid under such leases totaled $13 and $15 during the three months ended September 30, 2019 and 2018, respectively, and $39 and $49 during the nine months ended September 30, 2019 and 2018, respectively. The Company also subleases certain office space to entities owned by the Company’s principal shareholders. Amounts received under such subleases totaled $70 and $68 during the three months ended September 30, 2019 and 2018, respectively, and $207 and $203 during the nine months ended September 30, 2019 and 2018. Rent expense totaled $1,080 and $2,949 for the three and nine months ended September 30, 2018, respectively. The components of lease expense, which are recorded in noninterest expense - occupancy and equipment, in the condensed consolidated statements of income for the three and nine months ended September 30, 2019 were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 1,122 $ 3,382 Variable lease cost 187 738 Total $ 1,309 $ 4,120 Maturities of lease liabilities, including reconciliation to the lease liabilities, based on required contractual payments, were as follows: Year Ended December 31, 2019 (excluding the nine months ended September 30, 2019) $ 1,114 2020 4,166 2021 3,539 2022 2,756 2023 2,507 Thereafter 9,528 Total lease payments 23,610 Less: future interest costs(1) (2,806) Present value of lease liabilities $ 20,804 (1) Computed using the estimated interest rate for each lease Other information related to the lease liabilities as of and for the nine months ended September 30, 2019 was as follows: Nine Months Ended Other Information September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,193 Weighted average remaining lease term 6.98 years Weighted average discount rate 3.54 %

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	Note 17—Commitments and Contingencies Legal Proceedings The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on its financial position, results of operations or liquidity. Financial Instruments with Off-Balance Sheet Risk The Bank is a party to financial instruments with off-balance risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit which are not reflected in the condensed consolidated financial statements. Unfunded Commitments to Extend Credit A commitment to extend credit, such as a loan commitment, credit line and overdraft protection, is a legally binding agreement to lend funds to a customer, usually at a stated interest rate and for a specific purpose. Such commitments have fixed expiration dates and generally require a fee. The extension of a commitment gives rise to credit risk. The actual liquidity requirements or credit risk that the Bank will experience is expected to be lower than the contractual amount of commitments to extend credit because a significant portion of those commitments are expected to expire without being drawn upon. Certain commitments are subject to loan agreements containing covenants regarding the financial performance of the customer that must be met before the Bank is required to fund the commitment. The Bank uses the same credit policies in making commitments to extend credit as it does in making loans. The commitments outstanding to make loans include primarily residential real estate loans that are made for a period of 90 days or less. At September 30, 2019, outstanding commitments to make loans consisted of fixed rate loans of $45,798 with interest rates ranging from 2.75% to 4.625% and maturities ranging from 10 years to 30 years and variable rate loans of $150,053 with varying interest rates (ranging from 3.375% to 7.875% at September 30, 2019) and maturities ranging from 2 to 30 years. Standby Letters of Credit Standby letters of credit are issued on behalf of customers in connection with construction contracts between the customers and third parties. Under standby letters of credit, the Bank assures that the third parties will receive specified funds if customers fail to meet their contractual obligations. The credit risk to the Bank arises from its obligation to make payment in the event of a customer’s contractual default. The maximum amount of potential future payments guaranteed by the Bank is limited to the contractual amount of these letters. Collateral may be obtained at exercise of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The following is a summary of the total amount of unfunded commitments to extend credit and standby letters of credit outstanding at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Commitments to make loans $ 195,851 $ 241,809 Unused lines of credit 195,243 160,803 Standby letters of credit 70 70

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events
Subsequent Events	Note 18—Subsequent Events Subsequent to September 30, 2019, the Company repurchased and canceled 221,859 shares of common stock for $2,200. including commission and fees.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“U.S. GAAP’). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates.
Concentration of Credit Risk	Concentration of Credit Risk The loan portfolio consists primarily of residential real estate loans which are collateralized by real estate. At September 30, 2019 and December 31, 2018, residential real estate loans accounted for 86% and 84%, respectively, of the loan portfolio. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California which are dependent on the area economy for their livelihoods and servicing of their loan obligation. Approximately 90% and 94% of the loan portfolio was originated in California at September 30, 2019 and December 31, 2018, respectively.
Reclassifications to Prior Periods' Financial Statements	Reclassifications to Prior Periods’ Financial Statements Certain prior period amounts have been reclassified to conform with the current period presentation. Net servicing income (loss) has been reclassified from other non-interest income and reported separately on the condensed consolidated statements of income.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2019
Investment Securities
Schedule of amortized cost and fair value of debt securities available for sale	September 30, 2019 Amortized Gross Unrealized Fair Cost Gain Loss Value Available for sale: U.S. Treasury securities $ 147,363 $ 189 $ (4) $ 147,548 Collateralized mortgage obligations 1,236 45 — 1,281 Collateralized debt obligations 217 — (17) 200 Total $ 148,816 $ 234 $ (21) $ 149,029 December 31, 2018 Amortized Gross Unrealized Fair Cost Gain Loss Value Available for sale: U.S. Treasury securities $ 142,905 $ 9 $ (56) $ 142,858 Collateralized mortgage obligations 1,554 46 — 1,600 Collateralized debt obligations 308 — (11) 297 Total $ 144,767 $ 55 $ (67) $ 144,755
Schedule of amortized cost and fair value of debt securities available for sale, shown by contractual maturity	Amortized Fair Cost Value U.S. Treasury securities Due less than one year $ 127,566 $ 127,744 Due greater than one year 19,797 19,804 Collateralized mortgage obligations 1,236 1,281 Collateralized debt obligations 217 200 Total $ 148,816 $ 149,029
Schedule of debt securities available for sale, at fair value, continuous unrealized losses position	September 30, 2019 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Treasury securities $ 19,912 $ (4) $ — $ — $ 19,912 $ (4) Collateralized debt obligations — — 200 (17) 200 (17) Total $ 19,912 $ (4) $ 200 $ (17) $ 20,112 $ (21) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Treasury securities $ 113,219 $ (56) $ — $ — $ 113,219 $ (56) Collateralized debt obligations — — 297 (11) 297 (11) Total $ 113,219 $ (56) $ 297 $ (11) $ 113,516 $ (67)
Schedule of equity securities with readily determinable fair values	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net gains (losses) recorded during the period on equity securities $ 30 $ (31) $ 136 $ (125) Less: net gains (losses) recorded during the period on equity securities sold during the period — — — — Unrealized gains (losses) recorded during the period on equity securities held at the reporting date $ 30 $ (31) $ 136 $ (125)

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Loans
Schedule of major categories of loans	September 30, December 31, 2019 2018 Residential real estate $ 2,505,274 $ 2,452,441 Commercial real estate 224,570 250,955 Construction 171,051 176,605 Commercial lines of credit 24,512 37,776 Other consumer 29 26 Total loans 2,925,436 2,917,803 Less: allowance for loan losses (21,204) (21,850) Loans, net $ 2,904,232 $ 2,895,953
Summary of activity in allowance for loan losses and recorded investment by portfolio segment	The table presents the activity in the allowance for loan losses by portfolio segment for the three and nine months ending September 30, 2019 and 2018: Commercial Residential Commercial Lines of Other Three Months Ended September 30, 2019 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 12,758 $ 3,214 $ 3,067 $ 780 $ 1 $ 1,098 $ 20,918 Provision (recovery) for loan losses (321) 696 155 (193) — (86) 251 Charge offs — — — — — — — Recoveries 3 30 2 — — — 35 Total ending balance $ 12,440 $ 3,940 $ 3,224 $ 587 $ 1 $ 1,012 $ 21,204 Commercial Residential Commercial Lines of Other Nine Months Ended September 30, 2019 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 13,826 $ 2,573 $ 3,273 $ 1,058 $ 1 $ 1,119 $ 21,850 Provision (recovery) for loan losses (1,402) 1,275 (54) (295) — (107) (583) Charge offs — — — (176) — — (176) Recoveries 16 92 5 — — — 113 Total ending balance $ 12,440 $ 3,940 $ 3,224 $ 587 $ 1 $ 1,012 $ 21,204 Commercial Residential Commercial Lines of Other Three Months Ended September 30, 2018 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 12,675 $ 2,595 $ 3,211 $ 787 $ 1 $ 1,031 $ 20,300 Provision (recovery) for loan losses 28 — 110 181 — 104 423 Charge offs — — — — — — — Recoveries 6 31 5 — — — 42 Total ending balance $ 12,709 $ 2,626 $ 3,326 $ 968 $ 1 $ 1,135 $ 20,765 Commercial Residential Commercial Lines of Other Nine Months Ended September 30, 2018 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 12,279 $ 2,040 $ 2,218 $ 469 $ 1 $ 1,450 $ 18,457 Provision (recovery) for loan losses 421 484 1,095 499 — (315) 2,184 Charge offs (4) — — — — — (4) Recoveries 13 102 13 — — — 128 Total ending balance $ 12,709 $ 2,626 $ 3,326 $ 968 $ 1 $ 1,135 $ 20,765 The following tables present the balance in the allowance for loan losses and the recorded investment by portfolio segment and based on impairment method as of September 30, 2019 and December 31, 2018: Commercial Residential Commercial Lines of Other September 30, 2019 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 43 $ — $ — $ 5 $ — $ — $ 48 Collectively evaluated for impairment 12,397 3,940 3,224 582 1 1,012 21,156 Total ending allowance balance $ 12,440 $ 3,940 $ 3,224 $ 587 $ 1 $ 1,012 $ 21,204 Loans: Loans individually evaluated for impairment $ 219 $ 1,118 $ 4,503 $ 134 $ — $ — $ 5,974 Loans collectively evaluated for impairment 2,505,055 223,452 166,548 24,378 29 — 2,919,462 Total ending loans balance $ 2,505,274 $ 224,570 $ 171,051 $ 24,512 $ 29 $ — $ 2,925,436 Commercial Residential Commercial Lines of Other December 31, 2018 Real Estate Real Estate Construction Credit Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 46 $ 30 $ 78 $ 195 $ — $ — $ 349 Collectively evaluated for impairment 13,780 2,543 3,195 863 1 1,119 21,501 Total ending allowance balance $ 13,826 $ 2,573 $ 3,273 $ 1,058 $ 1 $ 1,119 $ 21,850 Loans: Loans individually evaluated for impairment $ 228 $ 3,779 $ 7,412 $ 416 $ — $ — $ 11,835 Loans collectively evaluated for impairment 2,452,213 247,176 169,193 37,360 26 — 2,905,968 Total ending loans balance $ 2,452,441 $ 250,955 $ 176,605 $ 37,776 $ 26 $ — $ 2,917,803
Summary of information related to impaired loans by class of loans	At September 30, 2019 At December 31, 2018 Unpaid Allowance Unpaid Allowance Principal Recorded for Loan Principal Recorded for Loan Balance Investment Losses Balance Investment Losses With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 127 $ 101 $ — $ — $ — $ — Commercial real estate: Retail 1,323 1,118 — 1,370 1,174 — Multifamily — — — 1,088 1,083 — Construction 4,504 4,503 — 4,751 4,751 — Commercial lines of credit, C&I lending — — — — — — Subtotal 5,954 5,722 — 7,209 7,008 — With an allowance for loan losses recorded: Residential real estate, first mortgage 117 118 43 254 228 46 Commercial real estate, offices — — — 1,530 1,522 30 Construction — — — 2,661 2,661 78 Commercial lines of credit: Private banking 134 134 5 316 316 95 C&I lending — — — 100 100 100 Subtotal 251 252 48 4,861 4,827 349 Total $ 6,205 $ 5,974 $ 48 $ 12,070 $ 11,835 $ 349 Three Months Ended September 30, 2019 September 30, 2018 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Recognized Investment Recognized Recognized With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 102 $ — $ — $ — $ — $ — Commercial real estate: Retail 1,127 16 10 1,202 16 11 Multifamily — — — 1,091 12 8 Construction 6,492 58 52 4,732 97 48 Commercial lines of credit, C&I lending 67 1 1 — — — Subtotal 7,788 75 63 7,025 125 67 With an allowance for loan losses recorded: Residential real estate, first mortgage 118 1 1 121 1 1 Commercial real estate, offices — — — 1,532 24 15 Construction — — — 2,661 55 37 Commercial lines of credit: Private banking 135 1 1 325 3 2 C&I lending — — — 100 1 1 Subtotal 253 2 2 4,739 84 56 Total $ 8,041 $ 77 $ 65 $ 11,764 $ 209 $ 123 Nine Months Ended September 30, 2019 September 30, 2018 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Recognized Investment Recognized Recognized With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 105 $ — $ — $ — $ — $ — Commercial real estate: Retail 1,146 46 41 1,220 48 43 Multifamily 598 12 12 725 24 20 Offices 504 25 25 — — — Construction 8,274 376 370 2,996 196 147 Commercial lines of credit, C&I Lending 89 5 5 — — — Subtotal 10,716 464 453 4,941 268 210 With an allowance for loan losses recorded: Residential real estate, first mortgage 119 4 3 121 4 3 Commercial real estate, offices — — — 1,541 67 59 Construction — — — 1,774 107 89 Commercial lines of credit: Private banking 137 5 5 331 14 13 C&I lending — — — 67 3 3 Subtotal 256 9 8 3,834 195 167 Total $ 10,972 $ 473 $ 461 $ 8,775 $ 463 $ 377
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans and aging of the recorded investment in past due loans	The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Loans Past Loans Past Due Over Due Over 90 Days Still 90 Days Still Nonaccrual Accruing Nonaccrual Accruing Residential real estate: Residential first mortgage $ 6,417 $ 55 $ 4,360 $ 80 Commercial real estate: Retail 45 — 60 — Construction 3,457 — — — Total $ 9,919 $ 55 $ 4,420 $ 80 The following tables present the aging of the recorded investment in past due loan by class of loans as of September 30, 2019 and December 31, 2018: Greater 30 - 59 60 - 89 than Days Days 89 Days Total Loans Not September 30, 2019 Past Due Past Due Past Due Past Due Past Due Total Residential real estate: Residential first mortgage $ 8,930 $ 284 $ 6,472 $ 15,686 $ 2,465,981 $ 2,481,667 Residential second mortgage 210 309 — 519 23,088 23,607 Commercial real estate: Retail — — 45 45 6,170 6,215 Multifamily — — — — 59,889 59,889 Offices — — — — 28,208 28,208 Hotel/Single-room occupancy hotels — — — — 81,529 81,529 Industrial — — — — 14,211 14,211 Other — — — — 34,518 34,518 Construction — — 3,457 3,457 167,594 171,051 Commercial lines of credit: Private banking — — — — 12,138 12,138 C&I lending 4,996 — — 4,996 7,378 12,374 Other consumer — — — — 29 29 Total $ 14,136 $ 593 $ 9,974 $ 24,703 $ 2,900,733 $ 2,925,436 Greater 30 - 59 60 - 89 than Days Days 89 Days Total Loans Not December 31, 2018 Past Due Past Due Past Due Past Due Past Due Total Residential real estate: Residential first mortgage $ 3,110 $ 1,257 $ 4,440 $ 8,807 $ 2,421,190 $ 2,429,997 Residential second mortgage 377 295 — 672 21,772 22,444 Commercial real estate: Retail — — 60 60 9,957 10,017 Multifamily — — — — 64,638 64,638 Offices — — — — 27,670 27,670 Hotel/Single-room occupancy hotels — — — — 101,414 101,414 Industrial — — — — 14,756 14,756 Other — — — — 32,460 32,460 Construction 1,971 — — 1,971 174,634 176,605 Commercial lines of credit: Private banking 176 — — 176 15,762 15,938 C&I lending — — — — 21,838 21,838 Other consumer — — — — 26 26 Total $ 5,634 $ 1,552 $ 4,500 $ 11,686 $ 2,906,117 $ 2,917,803
Schedule of risk rating of loans by class of loans	Special September 30, 2019 Pass Mention Substandard Doubtful Total Residential real estate: Residential first mortgage $ 2,475,200 $ — $ 2,191 $ 4,276 $ 2,481,667 Residential second mortgage 23,607 — — — 23,607 Commercial real estate: Retail 4,259 838 1,118 — 6,215 Multifamily 56,614 1,709 1,566 — 59,889 Offices 25,269 — 2,939 — 28,208 Hotel/Single-room occupancy hotels 69,479 8,532 3,518 — 81,529 Industrial 14,211 — — — 14,211 Other 27,021 925 6,572 — 34,518 Construction 156,119 — 14,932 — 171,051 Commercial lines of credit: Private banking 12,138 — — — 12,138 C&I lending 8,702 — 3,672 — 12,374 Other consumer 29 — — — 29 Total $ 2,872,648 $ 12,004 $ 36,508 $ 4,276 $ 2,925,436 Special December 31, 2018 Pass Mention Substandard Doubtful Total Residential real estate: Residential first mortgage $ 2,425,584 $ — $ 4,193 $ 220 $ 2,429,997 Residential second mortgage 22,444 — — — 22,444 Commercial real estate: Retail 8,843 — 1,174 — 10,017 Multifamily 63,555 — 1,083 — 64,638 Offices 27,670 — — — 27,670 Hotel/Single-room occupancy hotels 101,414 — — — 101,414 Industrial 14,756 — — — 14,756 Other 31,451 — 1,009 — 32,460 Construction 158,489 8,733 9,383 — 176,605 Commercial lines of credit: Private banking 15,762 — 176 — 15,938 C&I lending 17,785 — 4,053 — 21,838 Other consumer 26 — — — 26 Total $ 2,887,779 $ 8,733 $ 21,071 $ 220 $ 2,917,803

Mortgage Servicing Rights, Net

Mortgage Servicing Rights, Net (Tables)	9 Months Ended
	Sep. 30, 2019
Mortgage Servicing Rights, Net
Schedule of principal balance of mortgage loans serviced for others	September 30, December 31, 2019 2018 Residential real estate mortgage loan portfolios serviced for: FNMA $ 111,473 $ 85,364 FHLB 88,343 92,229 Private investors 703,358 713,095
Schedule of activity for mortgage servicing rights and related valuation allowance	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Mortgage servicing rights: Beginning of period $ 11,073 $ 9,313 $ 10,733 $ 6,706 Additions 903 703 2,765 4,290 Amortization (666) (580) (2,188) (1,560) End of period 11,310 9,436 11,310 9,436 Valuation allowance at beginning of period 1,301 18 100 210 Additions (recoveries) 99 7 1,300 (185) Valuation allowance at end of period 1,400 25 1,400 25 Mortgage servicing rights, net $ 9,910 $ 9,411 $ 9,910 $ 9,411

Federal Home Loan Bank Borrow_2

Federal Home Loan Bank Borrowings (Tables)	9 Months Ended
	Sep. 30, 2019
Federal Home Loan Bank Borrowings
Schedule of Federal Home Loan Bank (FHLB) borrowings	September 30, December 31, 2019 Interest Rates 2018 Interest Rates Short-term fixed rate advances $ — — $ 103,000 2.60% Long-term fixed rate advances 229,000 1.07%-1.96% 190,000 0.98%-1.18% Total FHLB advances $ 229,000 $ 293,000

Subordinated Notes, Net (Tables

Subordinated Notes, Net (Tables)	9 Months Ended
	Sep. 30, 2019
Subordinated Notes, Net
Schedule of subordinated notes	September 30, December 31, 2019 2018 7.0% fixed to floating rate subordinated notes $ 65,000 $ 65,000 Unamortized note premium 489 533 Unamortized debt issuance costs (349) (504) Total $ 65,140 $ 65,029

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Stock-based Compensation
Schedule of assumptions used to estimate grant date fair value of stock option awards using Black-Scholes option pricing model	Exercise price of options $ 10.12 Risk-free interest rate 2.66 % Expected term (in years) Expected stock price volatility 26.26 % Dividend yield .40 %
Summary of the Company's stock option activity	Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic of Shares Price Term Value (Years) Outstanding at January 1, 2019 92,625 $ 13.73 $ — Granted 84,889 10.12 Exercised — — Forfeited (3,000) 13.73 Outstanding at September 30, 2019 174,514 $ 11.97 $ —
Summary of the Company's restricted stock awards activity	Weighted Average Number Grant Date Fair of Shares Value Nonvested at January 1, 2019 48,975 $ 13.55 Granted 81,604 9.91 Vested (15,875) 13.50 Forfeited — — Nonvested at September 30, 2019 114,704 $ 10.97

Income Per Share (Tables)

Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Income Per Share
Schedule of computation of income per share, basic and diluted	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator: Net income $ 13,884 $ 15,741 $ 43,001 $ Denominator: Weighted average common shares outstanding, basic 50,428,108 52,963,308 51,490,046 52,963,308 Weighted average effect of potentially dilutive common shares: Stock options — — — — Restricted stock 13,464 3,285 10,611 1,781 Weighted average common shares outstanding, diluted 50,441,572 52,966,593 51,500,657 52,965,089 Income per share: Basic $ 0.28 $ 0.30 $ 0.84 $ 0.90 Diluted $ 0.28 $ 0.30 $ 0.83 $ 0.90
Schedule of anti-dilutive shares that were excluded from the computation of weighted average diluted shares outstanding	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Stock options 174,514 92,625 175,514 92,625 Restricted stock — — 38,235 — Total 174,514 92,625 213,749 92,625

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Values of Financial Instruments
Schedule of assets measured at fair value on a recurring basis categorized by level of inputs	Fair Value Measurements at September 30, 2019 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Financial Assets Available for sale debt securities: U.S. Treasury securities $ 147,548 $ 147,548 $ — $ — Collateralized mortgage obligations 1,281 — 1,281 — Collateralized debt obligations 200 — — 200 Equity securities 4,031 4,031 — — Fair Value Measurements at December 31, 2018 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Financial Assets Available for sale debt securities: U.S. Treasury securities $ 142,858 $ 142,858 $ — $ — Collateralized mortgage obligations 1,600 — 1,600 — Collateralized debt obligations 297 — — 297 Equity securities 3,895 3,895 — —
Summary of reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Investment Securities September 30, 2019 December 31, 2018 Collateralized Debt Collateralized Debt Obligations Obligations Balance of recurring Level 3 assets at January 1, $ 297 $ 571 Total gains or losses (realized/unrealized): Included in income-realized — — Included in other comprehensive income (loss) (6) 24 Principal maturities/settlements (91) (298) Sales — — Transfers in and/or out of Level 3 — — Balance of recurring Level 3 assets at end of period $ 200 $ 297
Schedule of assets measured at fair value on a nonrecurring basis categorized by level of inputs	Fair Value Measurements at September 30, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Mortgage servicing rights $ 8,005 $ — $ — $ 8,005 Fair Value Measurements at December 31, 2018 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Impaired loans: Construction $ 2,583 $ — $ — $ 2,583 Residential real estate 108 — — 108 Mortgage servicing rights 1,858 — — 1,858
Schedule of quantitative information about nonrecurring Level 3 fair value measurements	Quantitative Information about Level 3 Fair Value Measurements at September 30, 2019 Fair Value Valuation Technique Unobservable Inputs Mortgage servicing rights $ 8,005 Discounted cash flow Discount rate 9.5% - 12.0% Prepayment speed 7.6% - 46.9% Weighted average default rate 0.2% Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Impaired loans: Construction $ 2,583 Sales comparison approach Management discount for 10% property type and recent market volatility Residential real estate 108 Sales comparison approach Management discount for 10% property type and recent market volatility Mortgage servicing rights 1,858 Discounted cash flow Discount rate 9.5% - 12.0% Prepayment speed 7.0% - 33.6% Weighted average default rate 0.2%
Schedule of carrying amounts and estimated fair values of financial instruments not carried at fair value	Fair Value Measurements at September 30, 2019 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 146,246 $ 146,246 $ 146,246 $ — $ — Interest-bearing time deposits with other banks 1,100 1,100 — 1,100 — Mortgage loans held for sale 837 837 — 837 — Loans, net 2,904,232 2,971,238 — — 2,971,238 Financial Liabilities Time deposits 1,216,992 1,224,307 — 1,224,307 — Federal Home Loan Bank borrowings 229,000 228,550 — 228,550 — Subordinated notes, net 65,140 68,088 — 68,088 — Fair Value Measurements at December 31, 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 52,526 $ 52,526 $ 52,526 $ — $ — Interest-bearing time deposits with other banks 1,100 1,100 1,100 — — Mortgage loans held for sale 1,248 1,261 — 1,261 — Loans, net 2,893,262 2,987,419 — — 2,987,419 Financial Liabilities Time deposits 894,279 890,020 — 890,020 — Federal Home Loan Bank borrowings 293,000 285,265 — 285,265 — Subordinated notes, net 65,029 65,650 — 65,650 —

Regulatory Capital Requiremen_2

Regulatory Capital Requirements (Tables)	9 Months Ended
	Sep. 30, 2019
Regulatory Capital Requirements
Schedule of actual and minimum required capital amounts and ratios	For Capital Adequacy To be Well Actual Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2019 Total adjusted capital to risk-weighted assets Consolidated $ 437,455 22.64 % $ 154,555 8.00 % N/A N/A Bank 356,776 18.47 154,531 8.00 $ 193,164 10.00 % Tier 1 (core) capital to risk-weighted assets Consolidated 351,111 18.17 115,916 6.00 N/A N/A Bank 335,572 17.37 115,898 6.00 154,531 8.00 Common Equity Tier 1 (CET1) Consolidated 351,111 18.17 86,937 4.50 N/A N/A Bank 335,572 17.37 86,924 4.50 125,556 6.50 Tier 1 (core) capital to adjusted tangible assets Consolidated 351,111 10.54 133,246 4.00 N/A N/A Bank 335,572 10.07 133,245 4.00 166,556 5.00 For Capital Adequacy To be Well Actual Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total adjusted capital to risk-weighted assets Consolidated $ 421,495 21.98 % $ 153,426 8.00 % N/A N/A Bank 324,905 16.94 153,403 8.00 $ 191,754 10.00 % Tier 1 (core) capital to risk-weighted assets Consolidated 334,616 17.45 115,069 6.00 N/A N/A Bank 303,055 15.80 115,052 6.00 153,403 8.00 Common Equity Tier 1 (CET1) Consolidated 334,616 17.45 86,302 4.50 N/A N/A Bank 303,055 15.80 86,289 4.50 124,640 6.50 Tier 1 (core) capital to adjusted tangible assets Consolidated 334,616 10.42 128,431 4.00 N/A N/A Bank 303,055 9.44 128,430 4.00 160,538 5.00

Operating Leases (Tables)

Operating Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Operating Leases
Schedule of Operating lease expense information	Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 1,122 $ 3,382 Variable lease cost 187 738 Total $ 1,309 $ 4,120
Schedule of Maturity of lease liabilities	Year Ended December 31, 2019 (excluding the nine months ended September 30, 2019) $ 1,114 2020 4,166 2021 3,539 2022 2,756 2023 2,507 Thereafter 9,528 Total lease payments 23,610 Less: future interest costs(1) (2,806) Present value of lease liabilities $ 20,804 (1) Computed using the estimated interest rate for each lease
Schedule of Other information	Nine Months Ended Other Information September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,193 Weighted average remaining lease term 6.98 years Weighted average discount rate 3.54 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies
Summary of total amount of unfunded commitments to extend credit and standby letters of credit outstanding	September 30, December 31, 2019 2018 Commitments to make loans $ 195,851 $ 241,809 Unused lines of credit 195,243 160,803 Standby letters of credit 70 70

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2019segmentitem
Nature of Operations and Basis of Presentation
Number of branches	30
Number of reportable segments | segment	1
San Francisco and Los Angeles, California
Nature of Operations and Basis of Presentation
Number of branches	26

New Accounting Standards (Detai

New Accounting Standards (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Sep. 30, 2019
Leases
Right-of-use assets		$ 19,662
Operating lease liabilities		$ 20,804
Lease, Practical Expedient, Use of Hindsight [true false]	false
Lease, Practical Expedients, Package [true false]	true
ASU 2016-02 | Adjustments to Prior Interim Periods
Leases
Right-of-use assets	$ 21,812
Operating lease liabilities	$ 22,682

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Loans receivables	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Residential real estate loans
Concentration of Credit Risk
Concentration of credit risk	86.00%	84.00%
California
Concentration of Credit Risk
Concentration of credit risk	90.00%	94.00%

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Value Corresponding Gross Unrealized Gains and Losses (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Available for sale:
Available for sale, Amortized Cost	$ 148,816,000		$ 148,816,000		$ 144,767,000
Available for sale, Gross Unrealized Gain	234,000		234,000		55,000
Available for sale, Gross Unrealized Loss	(21,000)		(21,000)		(67,000)
Investment securities available for sale, at fair value	149,029,000		149,029,000		144,755,000
Carrying value of debt securities held of any single issuer in excess of 10% of shareholders' equity	0		$ 0		$ 0
Threshold percentage of total shareholders' equity above which securities of any single issuer exceed			10.00%		10.00%
Sales of debt securities available for sale	0		$ 0
Sales of investment securities		$ 0		$ 2,778,000
Gross realized losses		$ 0		$ (3,000)
U.S. Treasury securities
Available for sale:
Available for sale, Amortized Cost	147,363,000		147,363,000		$ 142,905,000
Available for sale, Gross Unrealized Gain	189,000		189,000		9,000
Available for sale, Gross Unrealized Loss	(4,000)		(4,000)		(56,000)
Investment securities available for sale, at fair value	147,548,000		147,548,000		142,858,000
Collateralized mortgage obligations
Available for sale:
Available for sale, Amortized Cost	1,236,000		1,236,000		1,554,000
Available for sale, Gross Unrealized Gain	45,000		45,000		46,000
Investment securities available for sale, at fair value	1,281,000		1,281,000		1,600,000
Collateralized debt obligations
Available for sale:
Available for sale, Amortized Cost	217,000		217,000		308,000
Available for sale, Gross Unrealized Loss	(17,000)		(17,000)		(11,000)
Investment securities available for sale, at fair value	$ 200,000		$ 200,000		$ 297,000

Investment Securities - Amort_2

Investment Securities - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available for sale, Amortized Cost
Available for sale, Amortized Cost	$ 148,816	$ 144,767
Available for sale, Fair Value
Available for sale, Fair Value	149,029	144,755
U.S. Treasury securities
Available for sale, Amortized Cost
Due less than one year	127,566
Due greater than one year	19,797
Available for sale, Amortized Cost	147,363	142,905
Available for sale, Fair Value
Due less than one year	127,744
Due greater than one year	19,804
Available for sale, Fair Value	147,548	142,858
Collateralized mortgage obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	1,236	1,554
Available for sale, Fair Value
Available for sale, Fair Value	1,281	1,600
Collateralized debt obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	217	308
Available for sale, Fair Value
Available for sale, Fair Value	$ 200	$ 297

Investment Securities - Aggrega

Investment Securities - Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)
Fair Value
Less than 12 Months, Fair value	$ 19,912	$ 113,219
12 Months or More, Fair Value	200	297
Available for sale, Continuous unrealized loss position, Fair Value	20,112	113,516
Unrealized Losses
Less than 12 Months, Unrealized Losses	(4)	(56)
12 Months or More, Unrealized Losses	(17)	(11)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (21)	(67)
Number of debt securities in portfolio | security	8
Number of debt securities in an unrealized loss position | security	2
U.S. Treasury securities
Fair Value
Less than 12 Months, Fair value	$ 19,912	113,219
Available for sale, Continuous unrealized loss position, Fair Value	19,912	113,219
Unrealized Losses
Less than 12 Months, Unrealized Losses	(4)	(56)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(4)	(56)
Collateralized debt obligations
Fair Value
12 Months or More, Fair Value	200	297
Available for sale, Continuous unrealized loss position, Fair Value	200	297
Unrealized Losses
12 Months or More, Unrealized Losses	(17)	(11)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (17)	$ (11)

Investment Securities - Equity

Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Equity Securities
Fair value of equity securities	$ 4,277		$ 4,277		$ 4,141
Equity securities with readily determinable fair values	4,031		4,031		3,895
Equity securities with readily determinable fair values
Net gains (losses) recorded during the period on equity securities	30	$ (31)	136	$ (125)
Unrealized gains (losses) recorded during the period on equity securities held at the reporting date	30	$ (31)	136	$ (125)
Level 3
Equity Securities
Investment in equity securities without readily determinable fair value	$ 246		$ 246		$ 246

Loans - Major Categories of Loa

Loans - Major Categories of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Major categories of loans
Total Loans	$ 2,925,436		$ 2,917,803
Less: allowance for loan losses	(21,204)	$ (20,918)	(21,850)	$ (20,765)	$ (20,300)	$ (18,457)
Loans, net	2,904,232		2,895,953
Carrying value of loans pledged as collateral on FHLB borrowings	936,864		898,731
Construction
Major categories of loans
Total Loans	171,051		176,605
Less: allowance for loan losses	(3,224)	(3,067)	(3,273)	(3,326)	(3,211)	(2,218)
Commercial lines of credit
Major categories of loans
Total Loans	24,512		37,776
Less: allowance for loan losses	(587)	(780)	(1,058)	(968)	(787)	(469)
Residential | Real Estate
Major categories of loans
Total Loans	2,505,274		2,452,441
Less: allowance for loan losses	(12,440)	(12,758)	(13,826)	(12,709)	(12,675)	(12,279)
Commercial | Real Estate
Major categories of loans
Total Loans	224,570		250,955
Less: allowance for loan losses	(3,940)	(3,214)	(2,573)	(2,626)	(2,595)	(2,040)
Consumer | Other consumer
Major categories of loans
Total Loans	29		26
Less: allowance for loan losses	$ (1)	$ (1)	$ (1)	$ (1)	$ (1)	$ (1)

Loans - Activity in the Allowan

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Allowance for loan losses
Beginning balance	$ 20,918	$ 20,300	$ 21,850	$ 18,457
Provision (recovery) for loan losses	251	423	(583)	2,184
Charge offs			(176)	(4)
Recoveries	35	42	113	128
Total ending balance	21,204	20,765	21,204	20,765
Construction
Allowance for loan losses
Beginning balance	3,067	3,211	3,273	2,218
Provision (recovery) for loan losses	155	110	(54)	1,095
Recoveries	2	5	5	13
Total ending balance	3,224	3,326	3,224	3,326
Commercial lines of credit
Allowance for loan losses
Beginning balance	780	787	1,058	469
Provision (recovery) for loan losses	(193)	181	(295)	499
Charge offs			(176)
Total ending balance	587	968	587	968
Unallocated
Allowance for loan losses
Beginning balance	1,098	1,031	1,119	1,450
Provision (recovery) for loan losses	(86)	104	(107)	(315)
Total ending balance	1,012	1,135	1,012	1,135
Residential | Real Estate
Allowance for loan losses
Beginning balance	12,758	12,675	13,826	12,279
Provision (recovery) for loan losses	(321)	28	(1,402)	421
Charge offs				(4)
Recoveries	3	6	16	13
Total ending balance	12,440	12,709	12,440	12,709
Commercial | Real Estate
Allowance for loan losses
Beginning balance	3,214	2,595	2,573	2,040
Provision (recovery) for loan losses	696		1,275	484
Recoveries	30	31	92	102
Total ending balance	3,940	2,626	3,940	2,626
Consumer | Other consumer
Allowance for loan losses
Beginning balance	1	1	1	1
Total ending balance	$ 1	$ 1	$ 1	$ 1

Loans - Activity in the Allow_2

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment And Based On Impairment Method (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 48		$ 349
Collectively evaluated for impairment	21,156		21,501
Total ending allowance balance	21,204	$ 20,918	21,850	$ 20,765	$ 20,300	$ 18,457
Loans:
Loans individually evaluated for impairment	5,974		11,835
Loans collectively evaluated for impairment	2,919,462		2,905,968
Total Loans	2,925,436		2,917,803
Construction
Ending allowance balance attributable to loans:
Individually evaluated for impairment			78
Collectively evaluated for impairment	3,224		3,195
Total ending allowance balance	3,224	3,067	3,273	3,326	3,211	2,218
Loans:
Loans individually evaluated for impairment	4,503		7,412
Loans collectively evaluated for impairment	166,548		169,193
Total Loans	171,051		176,605
Commercial lines of credit
Ending allowance balance attributable to loans:
Individually evaluated for impairment	5		195
Collectively evaluated for impairment	582		863
Total ending allowance balance	587	780	1,058	968	787	469
Loans:
Loans individually evaluated for impairment	134		416
Loans collectively evaluated for impairment	24,378		37,360
Total Loans	24,512		37,776
Unallocated
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	1,012		1,119
Total ending allowance balance	1,012	1,098	1,119	1,135	1,031	1,450
Residential | Real Estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment	43		46
Collectively evaluated for impairment	12,397		13,780
Total ending allowance balance	12,440	12,758	13,826	12,709	12,675	12,279
Loans:
Loans individually evaluated for impairment	219		228
Loans collectively evaluated for impairment	2,505,055		2,452,213
Total Loans	2,505,274		2,452,441
Commercial | Real Estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment			30
Collectively evaluated for impairment	3,940		2,543
Total ending allowance balance	3,940	3,214	2,573	2,626	2,595	2,040
Loans:
Loans individually evaluated for impairment	1,118		3,779
Loans collectively evaluated for impairment	223,452		247,176
Total Loans	224,570		250,955
Consumer | Other consumer
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	1		1
Total ending allowance balance	1	$ 1	1	$ 1	$ 1	$ 1
Loans:
Loans collectively evaluated for impairment	29		26
Total Loans	$ 29		$ 26

Loans - Impaired Loans by Class

Loans - Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	$ 5,954		$ 5,954		$ 7,209
Unpaid principal balance, with an allowance for loan losses recorded	251		251		4,861
Total Unpaid Principal Balance	6,205		6,205		12,070
Recorded investment, with no related allowance for loan losses recorded	5,722		5,722		7,008
Recorded investment, with an allowance for loan losses recorded	252		252		4,827
Total Recorded Investment	5,974		5,974		11,835
Allowance for Loan Losses	48		48		349
Average recorded investment, with no related allowance for loan losses recorded	7,788	$ 7,025	10,716	$ 4,941
Average recorded investment, with an allowance for loan losses recorded	253	4,739	256	3,834
Total Average Recorded Investment	8,041	11,764	10,972	8,775
Interest Income Recognized, with no related allowance for loan losses recorded	75	125	464	268
Interest Income Recognized, with an allowance for loan losses recorded	2	84	9	195
Total Interest Income Recognized	77	209	473	463
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	63	67	453	210
Cash Basis Interest Recognized, with an allowance for loan losses recorded	2	56	8	167
Total Cash Basis Interest Recognized	65	123	461	377
Real estate loan, First mortgage
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	127		127
Recorded investment, with no related allowance for loan losses recorded	101		101
Construction
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	4,504		4,504		4,751
Unpaid principal balance, with an allowance for loan losses recorded					2,661
Recorded investment, with no related allowance for loan losses recorded	4,503		4,503		4,751
Recorded investment, with an allowance for loan losses recorded					2,661
Allowance for Loan Losses					78
Average recorded investment, with no related allowance for loan losses recorded	6,492	4,732	8,274	2,996
Average recorded investment, with an allowance for loan losses recorded		2,661		1,774
Interest Income Recognized, with no related allowance for loan losses recorded	58	97	376	196
Interest Income Recognized, with an allowance for loan losses recorded		55		107
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	52	48	370	147
Cash Basis Interest Recognized, with an allowance for loan losses recorded		37		89
Commercial lines of credit
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded	67		89
Interest Income Recognized, with no related allowance for loan losses recorded	1		5
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	1		5
Private banking
Impaired loans by class of loans
Unpaid principal balance, with an allowance for loan losses recorded	134		134		316
Recorded investment, with an allowance for loan losses recorded	134		134		316
Allowance for Loan Losses	5		5		95
Average recorded investment, with an allowance for loan losses recorded	135	325	137	331
Interest Income Recognized, with an allowance for loan losses recorded	1	3	5	14
Cash Basis Interest Recognized, with an allowance for loan losses recorded	1	2	5	13
C&I lending
Impaired loans by class of loans
Unpaid principal balance, with an allowance for loan losses recorded					100
Recorded investment, with an allowance for loan losses recorded					100
Allowance for Loan Losses					100
Average recorded investment, with an allowance for loan losses recorded		100		67
Interest Income Recognized, with an allowance for loan losses recorded		1		3
Cash Basis Interest Recognized, with an allowance for loan losses recorded		1		3
Residential | Real estate loan, First mortgage
Impaired loans by class of loans
Unpaid principal balance, with an allowance for loan losses recorded	117		117		254
Recorded investment, with an allowance for loan losses recorded	118		118		228
Allowance for Loan Losses	43		43		46
Average recorded investment, with no related allowance for loan losses recorded	102		105
Average recorded investment, with an allowance for loan losses recorded	118	121	119	121
Interest Income Recognized, with an allowance for loan losses recorded	1	1	4	4
Cash Basis Interest Recognized, with an allowance for loan losses recorded	1	1	3	3
Commercial | Real estate loan, Retail
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	1,323		1,323		1,370
Recorded investment, with no related allowance for loan losses recorded	1,118		1,118		1,174
Average recorded investment, with no related allowance for loan losses recorded	1,127	1,202	1,146	1,220
Interest Income Recognized, with no related allowance for loan losses recorded	16	16	46	48
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	$ 10	11	41	43
Commercial | Real estate loan, Multifamily
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded					1,088
Recorded investment, with no related allowance for loan losses recorded					1,083
Average recorded investment, with no related allowance for loan losses recorded		1,091	598	725
Interest Income Recognized, with no related allowance for loan losses recorded		12	12	24
Cash Basis Interest Recognized, with no related allowance for loan losses recorded		8	12	20
Commercial | Real estate loan, Offices
Impaired loans by class of loans
Unpaid principal balance, with an allowance for loan losses recorded					1,530
Recorded investment, with an allowance for loan losses recorded					1,522
Allowance for Loan Losses					$ 30
Average recorded investment, with no related allowance for loan losses recorded			504
Average recorded investment, with an allowance for loan losses recorded		1,532		1,541
Interest Income Recognized, with no related allowance for loan losses recorded			25
Interest Income Recognized, with an allowance for loan losses recorded		24		67
Cash Basis Interest Recognized, with no related allowance for loan losses recorded			$ 25
Cash Basis Interest Recognized, with an allowance for loan losses recorded		$ 15		$ 59

Loans - Investment in Nonaccrua

Loans - Investment in Nonaccrual and Loans Past Due Still Accruing by Class of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	$ 9,919	$ 4,420
Loans Past Due Over 90 Days Still Accruing	55	80
Total Past Due	24,703	11,686
Loans Not Past Due	2,900,733	2,906,117
Total Loans	2,925,436	2,917,803
30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	14,136	5,634
60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	593	1,552
Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	9,974	4,500
Construction
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	3,457
Total Past Due	3,457	1,971
Loans Not Past Due	167,594	174,634
Total Loans	171,051	176,605
Construction | 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due		1,971
Construction | Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	3,457
Commercial lines of credit
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	24,512	37,776
Private banking
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due		176
Loans Not Past Due	12,138	15,762
Total Loans	12,138	15,938
Private banking | 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due		176
C&I lending
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	4,996
Loans Not Past Due	7,378	21,838
Total Loans	12,374	21,838
C&I lending | 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	4,996
Residential | Real Estate
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	2,505,274	2,452,441
Residential | Real estate loan, First mortgage
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	6,417	4,360
Loans Past Due Over 90 Days Still Accruing	55	80
Total Past Due	15,686	8,807
Loans Not Past Due	2,465,981	2,421,190
Total Loans	2,481,667	2,429,997
Residential | Real estate loan, First mortgage | 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	8,930	3,110
Residential | Real estate loan, First mortgage | 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	284	1,257
Residential | Real estate loan, First mortgage | Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	6,472	4,440
Residential | Real estate loan, Second mortgage
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	519	672
Loans Not Past Due	23,088	21,772
Total Loans	23,607	22,444
Residential | Real estate loan, Second mortgage | 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	210	377
Residential | Real estate loan, Second mortgage | 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	309	295
Commercial | Real Estate
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	224,570	250,955
Commercial | Real estate loan, Retail
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	45	60
Total Past Due	45	60
Loans Not Past Due	6,170	9,957
Total Loans	6,215	10,017
Commercial | Real estate loan, Retail | Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	45	60
Commercial | Real estate loan, Multifamily
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	59,889	64,638
Total Loans	59,889	64,638
Commercial | Real estate loan, Offices
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	28,208	27,670
Total Loans	28,208	27,670
Commercial | Real estate loan, Hotel/Single-room occupancy hotels
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	81,529	101,414
Total Loans	81,529	101,414
Commercial | Real estate loan, Industrial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	14,211	14,756
Total Loans	14,211	14,756
Commercial | Real estate loan, Other
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	34,518	32,460
Total Loans	34,518	32,460
Consumer | Other consumer
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	29	26
Total Loans	$ 29	$ 26

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)loan	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	$ 2,517		$ 5,826
Allowance for outstanding loan losses classified as troubled debt restructurings	$ 48		$ 261
Number of TDRs subsequently defaulted | loan	0
Extension of maturity term (in months)		7 months
Total outstanding recorded investment	$ 1,046	$ 2,761

Loans - Risk Rating of Loans by

Loans - Risk Rating of Loans by Class of Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Recorded investment in loans
Total	$ 2,925,436		$ 2,925,436		$ 2,917,803
Portfolio loans sold during the period	51,591	$ 82,464	173,397	$ 352,141
Gain on sale of portfolio loans	1,683	$ 2,876	5,985	$ 11,885
Construction
Recorded investment in loans
Total	171,051		171,051		176,605
Commercial lines of credit
Recorded investment in loans
Total	24,512		24,512		37,776
Private banking
Recorded investment in loans
Total	12,138		12,138		15,938
C&I lending
Recorded investment in loans
Total	12,374		12,374		21,838
Pass
Recorded investment in loans
Total	2,872,648		2,872,648		2,887,779
Pass | Construction
Recorded investment in loans
Total	156,119		156,119		158,489
Pass | Private banking
Recorded investment in loans
Total	12,138		12,138		15,762
Pass | C&I lending
Recorded investment in loans
Total	8,702		8,702		17,785
Special Mention
Recorded investment in loans
Total	12,004		12,004		8,733
Special Mention | Construction
Recorded investment in loans
Total					8,733
Substandard
Recorded investment in loans
Total	36,508		36,508		21,071
Substandard | Construction
Recorded investment in loans
Total	14,932		14,932		9,383
Substandard | Private banking
Recorded investment in loans
Total					176
Substandard | C&I lending
Recorded investment in loans
Total	3,672		3,672		4,053
Doubtful
Recorded investment in loans
Total	4,276		4,276		220
Residential | Real Estate
Recorded investment in loans
Total	2,505,274		2,505,274		2,452,441
Residential | Real estate loan, First mortgage
Recorded investment in loans
Total	2,481,667		2,481,667		2,429,997
Residential | Real estate loan, Second mortgage
Recorded investment in loans
Total	23,607		23,607		22,444
Residential | Pass | Real estate loan, First mortgage
Recorded investment in loans
Total	2,475,200		2,475,200		2,425,584
Residential | Pass | Real estate loan, Second mortgage
Recorded investment in loans
Total	23,607		23,607		22,444
Residential | Substandard | Real estate loan, First mortgage
Recorded investment in loans
Total	2,191		2,191		4,193
Residential | Doubtful | Real estate loan, First mortgage
Recorded investment in loans
Total	4,276		4,276		220
Commercial | Real Estate
Recorded investment in loans
Total	224,570		224,570		250,955
Commercial | Real estate loan, Retail
Recorded investment in loans
Total	6,215		6,215		10,017
Commercial | Real estate loan, Multifamily
Recorded investment in loans
Total	59,889		59,889		64,638
Commercial | Real estate loan, Offices
Recorded investment in loans
Total	28,208		28,208		27,670
Commercial | Real estate loan, Hotel/Single-room occupancy hotels
Recorded investment in loans
Total	81,529		81,529		101,414
Commercial | Real estate loan, Industrial
Recorded investment in loans
Total	14,211		14,211		14,756
Commercial | Real estate loan, Other
Recorded investment in loans
Total	34,518		34,518		32,460
Commercial | Pass | Real estate loan, Retail
Recorded investment in loans
Total	4,259		4,259		8,843
Commercial | Pass | Real estate loan, Multifamily
Recorded investment in loans
Total	56,614		56,614		63,555
Commercial | Pass | Real estate loan, Offices
Recorded investment in loans
Total	25,269		25,269		27,670
Commercial | Pass | Real estate loan, Hotel/Single-room occupancy hotels
Recorded investment in loans
Total	69,479		69,479		101,414
Commercial | Pass | Real estate loan, Industrial
Recorded investment in loans
Total	14,211		14,211		14,756
Commercial | Pass | Real estate loan, Other
Recorded investment in loans
Total	27,021		27,021		31,451
Commercial | Special Mention | Real estate loan, Retail
Recorded investment in loans
Total	838		838
Commercial | Special Mention | Real estate loan, Multifamily
Recorded investment in loans
Total	1,709		1,709
Commercial | Special Mention | Real estate loan, Hotel/Single-room occupancy hotels
Recorded investment in loans
Total	8,532		8,532
Commercial | Special Mention | Real estate loan, Other
Recorded investment in loans
Total	925		925
Commercial | Substandard | Real estate loan, Retail
Recorded investment in loans
Total	1,118		1,118		1,174
Commercial | Substandard | Real estate loan, Multifamily
Recorded investment in loans
Total	1,566		1,566		1,083
Commercial | Substandard | Real estate loan, Offices
Recorded investment in loans
Total	2,939		2,939
Commercial | Substandard | Real estate loan, Hotel/Single-room occupancy hotels
Recorded investment in loans
Total	3,518		3,518
Commercial | Substandard | Real estate loan, Other
Recorded investment in loans
Total	6,572		6,572		1,009
Consumer | Other consumer
Recorded investment in loans
Total	29		29		26
Consumer | Pass | Other consumer
Recorded investment in loans
Total	$ 29		$ 29		$ 26

Mortgage Servicing Rights, Ne_2

Mortgage Servicing Rights, Net - Principle Balance by Category (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Mortgage Servicing Rights
Custodial escrow balances maintained on serviced loans	$ 19,718	$ 13,593
FNMA
Mortgage Servicing Rights
Principal balance of mortgage loan portfolios	111,473	85,364
FHLB
Mortgage Servicing Rights
Principal balance of mortgage loan portfolios	88,343	92,229
Private investors
Mortgage Servicing Rights
Principal balance of mortgage loan portfolios	$ 703,358	$ 713,095

Mortgage Servicing Rights, Ne_3

Mortgage Servicing Rights, Net - Activity and Related Valuation Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Mortgage servicing rights activity
Mortgage servicing rights Beginning of period	$ 11,073	$ 9,313	$ 10,733	$ 6,706
Additions	903	703	2,765	4,290
Amortization	(666)	(580)	(2,188)	(1,560)
Mortgage servicing rights End of period	11,310	9,436	11,310	9,436
Valuation allowance at beginning of period	1,301	18	100	210
Additions (recoveries)	99	7	1,300	(185)
Valuation allowance at end of period	1,400	25	1,400	25
Mortgage servicing rights, net	9,910	9,411	9,910	9,411	$ 10,633
Servicing fee income, net of amortization of servicing rights and changes in the valuation allowance	$ 240	$ 291	$ (437)	$ 1,001

Mortgage Servicing Rights, Ne_4

Mortgage Servicing Rights, Net - Valuation techniques (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Mortgage Servicing Rights
Fair value of mortgage servicing rights	$ 10,313	$ 11,523
Weighted average default rate	0.20%	0.20%
Minimum
Mortgage Servicing Rights
Discount rate range	9.50%	9.50%
Prepayment speed range	6.90%	6.80%
Maximum
Mortgage Servicing Rights
Discount rate range	12.00%	12.00%
Prepayment speed range	46.90%	33.60%

Deposits - Time deposits (Detai

Deposits - Time deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Deposits
Interest-bearing time deposits	$ 1,216,992	$ 894,279
Brokered time deposits	25,000	33,750
Time deposits that meet or exceed the FDIC insurance limit of $250	$ 333,050	$ 208,888

Federal Home Loan Bank Borrow_3

Federal Home Loan Bank Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Federal Home Loan Bank Borrowings
Short-term fixed rate advances		$ 103,000
Long-term fixed rate advances	$ 229,000	190,000
Total FHLB advances	229,000	293,000
FHLB overdraft line of credit	$ 0	$ 0
FHLB overdraft line of credit (as percent)	2.33%	2.87%
Short term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)		2.60%
Minimum | Long term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)	1.07%	0.98%
Maximum | Long term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)	1.96%	1.18%

Federal Home Loan Bank Borrow_4

Federal Home Loan Bank Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Federal Home Loan Bank Borrowings
Total FHLB advances	$ 229,000	$ 293,000
Additional borrowing capacity	376,353
Callable Option
Federal Home Loan Bank Borrowings
Total FHLB advances	207,000
Callable Option September, 2021
Federal Home Loan Bank Borrowings
Total FHLB advances	67,000
Callable Option October, 2021
Federal Home Loan Bank Borrowings
Total FHLB advances	90,000
Callable Option May, 2024
Federal Home Loan Bank Borrowings
Total FHLB advances	$ 50,000

Federal Home Loan Bank Borrow_5

Federal Home Loan Bank Borrowings - FHLB Overdraft Line of Credit (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Federal Home Loan Bank Borrowings
FHLB line of credit agreement maximum borrowing limit	$ 50,000
FHLB overdraft line of credit average borrowings outstanding	2,566	$ 4,246
FHLB overdraft line of credit	$ 0		$ 0
FHLB overdraft line of credit (as percent)	2.33%		2.87%
FHLB, agreement term	1 year
Carrying value of loans pledged as collateral on FHLB borrowings	$ 936,864		$ 898,731

Federal Home Loan Bank Borrow_6

Federal Home Loan Bank Borrowings - Other Borrowings (Details) - Other Banks - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other Borrowings
Maximum borrowing capacity	$ 70,000	$ 70,000
Outstanding balance	$ 0	$ 0

Subordinated Notes, Net (Detail

Subordinated Notes, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Subordinated Notes
Total	$ 65,140		$ 65,140		$ 65,029
Interest expense	1,175	$ 1,173	3,524	$ 3,516
Subordinated notes
Subordinated Notes
7.0% fixed to floating rate subordinated notes	65,000		65,000		65,000
Unamortized note premium	489		489		533
Unamortized debt issuance costs	(349)		(349)		(504)
Total	65,140		$ 65,140		$ 65,029
Interest rate (as a percent)			7.00%		7.00%
Interest expense	$ 1,175	$ 1,173	$ 3,524	$ 3,516
Redemption price percentage of outstanding principal amount			100.00%
LIBOR | Subordinated notes
Subordinated Notes
Variable interest rate on subordinate notes (in percent)	5.82%

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Stock Repurchase Program
Shares repurchased and cancelled, value	$ 4,168	$ 10,011	$ 11,544
Common stock repurchases remaining value	$ 24,277			$ 24,277
Common stock
Stock Repurchase Program
Shares repurchased and canceled	421,581	1,034,792	1,212,574	2,668,947
Shares repurchased and cancelled, value	$ 4,168	$ 10,011	$ 11,544	$ 25,723
Average repurchase price (in dollars per share)	$ 9.89			$ 9.64
Maximum | Common stock
Stock Repurchase Program
Stock repurchase program authorized amount					$ 50,000

Stock-based Compensation (Detai

Stock-based Compensation (Details) - 2017 Omnibus Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	May 23, 2019	Mar. 01, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Stock-based Compensation
Number of shares authorized			4,237,100		4,237,100
Stock Options
Stock-based Compensation
Maximum term of stock awards granted					10 years
Number of share instruments issued		84,889
Weighted average grant-date fair value		$ 3.20
Fair value assumptions used in Black-Scholes option pricing model
Exercise price of options		$ 10.12	$ 10.12		$ 10.12
Risk-free interest rate					2.66%
Expected term (in years)					6 years 9 months
Expected stock price volatility					26.26%
Dividend yield					0.40%
Number of Shares
Outstanding at January 1, 2019					92,625
Granted					84,889
Forfeited					(3,000)
Outstanding at September 30, 2019			174,514		174,514		92,625
Weighted Average Exercise Price
Outstanding at January 1, 2019					$ 13.73
Granted					10.12
Forfeited					13.73
Outstanding at September 30, 2019			$ 11.97		$ 11.97		$ 13.73
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (Years)					8 years 11 months 9 days		9 years 2 months 19 days
Stock-based compensation costs recognized			$ 43	$ 27	$ 114	$ 56
Total unrecognized compensation cost - stock options			$ 484		$ 484
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period					2 years 11 months 5 days
Number of options exercisable			0		0
Stock Options | Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting					50.00%
Stock Options | Awards vesting at the end of the fourth year
Stock-based Compensation
Percentage of awards vesting					50.00%
Restricted Stock
Weighted Average Remaining Contractual Term
Stock-based compensation costs recognized			$ 103	$ 76	$ 311	$ 132
Total unrecognized compensation cost - restricted stock awards			$ 947		$ 947
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period					2 years 11 months 12 days
Number of Shares
Nonvested at January 1, 2019					48,975
Granted					81,604
Vested					(15,875)
Nonvested at September 30, 2019			114,704		114,704		48,975
Weighted Average Grant Date Fair Value
Nonvested at January 1, 2019					$ 13.55
Granted					9.91
Vested					13.50
Nonvested at September 30, 2019			$ 10.97		$ 10.97		$ 13.55
Key employees Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued		71,144
Key employees Restricted Stock Awards | Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting		50.00%
Key employees Restricted Stock Awards | Awards vesting at the end of the fourth year
Stock-based Compensation
Percentage of awards vesting		50.00%
Non-employee directors Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued	10,460
Non-employee directors Restricted Stock Awards | Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting	100.00%

Income Per Share (Details)

Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income	$ 13,884	$ 13,434	$ 15,683	$ 15,741	$ 15,982	$ 15,749	$ 43,001	$ 47,472
Denominator:
Weighted average common shares outstanding, basic	50,428,108			52,963,308			51,490,046	52,963,308
Weighted average effect of potentially dilutive common shares:
Weighted average common shares outstanding, diluted	50,441,572			52,966,593			51,500,657	52,965,089
Basic (in dollars per share)	$ 0.28			$ 0.30			$ 0.84	$ 0.90
Diluted (in dollars per share)	$ 0.28			$ 0.30			$ 0.83	$ 0.90
Common stock
Weighted average effect of potentially dilutive common shares:
Potentially dilutive securities excluded from diluted per share calculation	174,514			92,625			213,749	92,625
Common stock | Restricted Stock
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation	13,464			3,285			10,611	1,781
Potentially dilutive securities excluded from diluted per share calculation							38,235
Common stock | Stock Options
Weighted average effect of potentially dilutive common shares:
Potentially dilutive securities excluded from diluted per share calculation	174,514			92,625			175,514	92,625

Fair Values of Financial Inst_3

Fair Values of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Available for sale debt securities:
Available for sale debt securities, at fair value	$ 149,029	$ 144,755
Equity securities
Equity securities	4,031	3,895
Fair value of transfers between Levels
Transfers between Level 1 to Level 2 of fair value hierarchy, assets	0		$ 0
Transfers between Level 2 to Level 1 of fair value hierarchy, assets	0		$ 0
U.S. Treasury securities
Available for sale debt securities:
Available for sale debt securities, at fair value	147,548	142,858
U.S. Treasury securities | Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	147,548	142,858
U.S. Treasury securities | Level 1 | Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	147,548	142,858
Collateralized mortgage obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	1,281	1,600
Collateralized mortgage obligations | Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	1,281	1,600
Collateralized mortgage obligations | Level 2 | Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	1,281	1,600
Collateralized debt obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	200	297
Collateralized debt obligations | Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	200	297
Collateralized debt obligations | Level 3 | Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	200	297
Equity securities | Recurring
Equity securities
Equity securities	4,031	3,895
Equity securities | Level 1 | Recurring
Equity securities
Equity securities	$ 4,031	$ 3,895

Fair Values of Financial Inst_4

Fair Values of Financial Instruments - Reconciliation and income statement classification using Level 3 inputs (Details) - Collateralized debt obligations - Recurring - Level 3 - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance of recurring Level 3 assets at January 1	$ 297	$ 571
Included in other comprehensive income (loss)	(6)	24
Principal maturities/settlements	(91)	(298)
Balance of recurring Level 3 assets at end of period	200	297
Investment income
Unrealized losses on investments	17	11
Interest income	$ 10	$ 16

Fair Values of Financial Inst_5

Fair Values of Financial Instruments - Assets Measured at Fair Value on a Non Recurring Basis and Fair Value of Financial Instruments (Details) $ in Thousands	Sep. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Financial Assets
Interest-bearing time deposits with other banks	$ 1,100	$ 1,100
Nonrecurring | Level 3 | Weighted average default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.2	0.2
Nonrecurring | Maximum | Level 3 | Discounted cash flow | Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	46.9	33.6
Nonrecurring | Minimum | Level 3 | Discounted cash flow | Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	7.6	7
Nonrecurring | Impaired loans, construction
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		$ 2,583
Nonrecurring | Impaired loans, construction | Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		2,583
Nonrecurring | Impaired loans, construction | Level 3 | Sales comparison approach
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		$ 2,583
Nonrecurring | Impaired loans, construction | Level 3 | Sales comparison approach | Management discount for property type and recent market volatility
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input		10
Nonrecurring | Residential real estate
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		$ 108
Nonrecurring | Residential real estate | Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		108
Nonrecurring | Residential real estate | Level 3 | Sales comparison approach
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		$ 108
Nonrecurring | Residential real estate | Level 3 | Sales comparison approach | Management discount for property type and recent market volatility
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input		10
Nonrecurring | Mortgage servicing rights
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 8,005	$ 1,858
Nonrecurring | Mortgage servicing rights | Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	8,005	1,858
Nonrecurring | Mortgage servicing rights | Level 3 | Discounted cash flow
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 8,005	$ 1,858
Nonrecurring | Mortgage servicing rights | Maximum | Level 3 | Discounted cash flow | Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	12	12
Nonrecurring | Mortgage servicing rights | Minimum | Level 3 | Discounted cash flow | Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	9.5	9.5
Carrying value per balance sheet
Financial Assets
Cash and due from banks	$ 146,246	$ 52,526
Interest-bearing time deposits with other banks	1,100	1,100
Mortgage loans held for sale	837	1,248
Loans, net	2,904,232	2,893,262
Financial Liabilities
Time deposits	1,216,992	894,279
Federal Home Loan Bank borrowings	229,000	293,000
Subordinated notes, net	65,140	65,029
Estimated fair value
Financial Assets
Cash and due from banks	146,246	52,526
Interest-bearing time deposits with other banks	1,100	1,100
Mortgage loans held for sale	837	1,261
Loans, net	2,971,238	2,987,419
Financial Liabilities
Time deposits	1,224,307	890,020
Federal Home Loan Bank borrowings	228,550	285,265
Subordinated notes, net	68,088	65,650
Estimated fair value | Level 1
Financial Assets
Cash and due from banks	146,246	52,526
Interest-bearing time deposits with other banks		1,100
Estimated fair value | Level 2
Financial Assets
Interest-bearing time deposits with other banks	1,100
Mortgage loans held for sale	837	1,261
Financial Liabilities
Time deposits	1,224,307	890,020
Federal Home Loan Bank borrowings	228,550	285,265
Subordinated notes, net	68,088	65,650
Estimated fair value | Level 3
Financial Assets
Loans, net	$ 2,971,238	$ 2,987,419

Regulatory Capital Requiremen_3

Regulatory Capital Requirements - Capital adequacy requirements (Details)	Jan. 01, 2019
Regulatory Capital Requirements
Capital conservation buffer (as a percent)	2.50%

Regulatory Capital Requiremen_4

Regulatory Capital Requirements - Actual and minimum required capital amounts and ratios and Dividend Restrictions (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Regulatory Capital Requirements
Required Total capital adequacy with capital conservation buffer (as a percent)		10.50%
Required Tier 1 capital adequacy with capital conservation buffer (as a percent)		8.50%
Required Common Equity capital adequacy with capital conservation buffer (as a percent)		7.00%
Total adjusted capital to risk-weighted assets, Amount
Actual	$ 437,455		$ 421,495
For Capital Adequacy Purposes	$ 154,555		$ 153,426
Total adjusted capital to risk-weighted assets, Ratio
Actual (as a percent)	22.64%		21.98%
For Capital Adequacy Purposes (as a percent)	8.00%		8.00%
Tier 1 (core) capital to risk-weighted assets, Amount
Actual	$ 351,111		$ 334,616
For Capital Adequacy Purposes	$ 115,916		$ 115,069
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual (as a percent)	18.17%		17.45%
For Capital Adequacy Purposes (as a percent)	6.00%		6.00%
Common Equity Tier 1 (CET1), Amount
Actual	$ 351,111		$ 334,616
For Capital Adequacy Purposes	$ 86,937		$ 86,302
Common Equity Tier 1 (CET1), Ratio
Actual (as a percent)	18.17%		17.45%
For Capital Adequacy Purposes (as a percent)	4.50%		4.50%
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 351,111		$ 334,616
For Capital Adequacy Purposes	$ 133,246		$ 128,431
Tier 1 (core) capital to adjusted tangible assets, Ratio
Actual (as a percent)	10.54%		10.42%
For Capital Adequacy Purposes (as a percent)	4.00%		4.00%
Dividend Restrictions
Minimum percentage of assets be maintained as per Qualified Thrift Lender ("QTL") test	65.00%
Amount of aggregate dividends able to pay without regulatory approval	$ 120,616
Bank
Regulatory Capital Requirements
Required Total capital adequacy with capital conservation buffer (as a percent)		10.50%
Required Tier 1 capital adequacy with capital conservation buffer (as a percent)		8.50%
Required Common Equity capital adequacy with capital conservation buffer (as a percent)		7.00%
Total adjusted capital to risk-weighted assets, Amount
Actual	356,776		$ 324,905
For Capital Adequacy Purposes	154,531		153,403
To be Well Capitalized	$ 193,164		$ 191,754
Total adjusted capital to risk-weighted assets, Ratio
Actual (as a percent)	18.47%		16.94%
For Capital Adequacy Purposes (as a percent)	8.00%		8.00%
To be Well Capitalized (as a percent)	10.00%		10.00%
Tier 1 (core) capital to risk-weighted assets, Amount
Actual	$ 335,572		$ 303,055
For Capital Adequacy Purposes	115,898		115,052
To be Well Capitalized	$ 154,531		$ 153,403
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual (as a percent)	17.37%		15.80%
For Capital Adequacy Purposes (as a percent)	6.00%		6.00%
To be Well Capitalized (as a percent)	8.00%		8.00%
Common Equity Tier 1 (CET1), Amount
Actual	$ 335,572		$ 303,055
For Capital Adequacy Purposes	86,924		86,289
To be Well Capitalized	$ 125,556		$ 124,640
Common Equity Tier 1 (CET1), Ratio
Actual (as a percent)	17.37%		15.80%
For Capital Adequacy Purposes (as a percent)	4.50%		4.50%
To be Well Capitalized (as a percent)	6.50%		6.50%
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 335,572		$ 303,055
For Capital Adequacy Purposes	133,245		128,430
To be Well Capitalized	$ 166,556		$ 160,538
Tier 1 (core) capital to adjusted tangible assets, Ratio
Actual (as a percent)	10.07%		9.44%
For Capital Adequacy Purposes (as a percent)	4.00%		4.00%
To be Well Capitalized (as a percent)	5.00%		5.00%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Charitable donation to foundation | Board of directors
Related party transactions
Amount of related party transaction, expense	$ 225	$ 225	$ 675	$ 675
Data processing and programming services provided | Principal Shareholder
Related party transactions
Amount of related party transaction, revenue	$ 29	$ 33	$ 81	$ 87

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating Leases
Lessee, operating lease, existence of option to extend [true false]	true		true
Components of lease expense
Operating lease cost	$ 1,122		$ 3,382
Variable lease cost	187		738
Total	$ 1,309	$ 1,080	$ 4,120	$ 2,949
Minimum
Operating Leases
Renewal term (in years)	5 years		5 years
Maximum
Operating Leases
Renewal term (in years)	10 years		10 years
Principal Shareholder
Operating Leases
Payments under leases	$ 13	15	$ 39	49
Sublease income	$ 70	$ 68	$ 207	$ 203

Operating Leases - Maturity of

Operating Leases - Maturity of lease liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Maturities of lease liabilities
2019 (excluding the nine months ended September 30, 2019)	$ 1,114
2020	4,166
2021	3,539
2022	2,756
2023	2,507
Thereafter	9,528
Total lease payments	23,610
Less: future interest costs	(2,806)
Present value of lease liabilities	$ 20,804

Operating Leases - Other Inform

Operating Leases - Other Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 3,193
Weighted average remaining lease term	6 years 11 months 23 days
Weighted average discount rate	3.54%

Commitments and Contingencies -

Commitments and Contingencies - Unfunded Commitments to Extend Credit and Standby Letters of Credit (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Commitments to make loans
Commitments and Contingencies
Face amount	$ 195,851	$ 241,809
Unused lines of credit
Commitments and Contingencies
Face amount	195,243	160,803
Standby letters of credit
Commitments and Contingencies
Face amount	70	$ 70
Real Estate | Residential | Unfunded Commitments to Extend Credit
Commitments and Contingencies
Outstanding commitments regarding fixed rate loans	45,798
Outstanding commitments with varying interest rates	$ 150,053
Real Estate | Residential | Minimum | Unfunded Commitments to Extend Credit
Commitments and Contingencies
Fixed interest rate (as a percent)	2.75%
Maturity period	10 years
Variable interest rate (as a percentage)	3.375%
Maturity period for variable interest loans	2 years
Real Estate | Residential | Maximum | Unfunded Commitments to Extend Credit
Commitments and Contingencies
Fixed interest rate (as a percent)	4.625%
Maturity period	30 years
Variable interest rate (as a percentage)	7.875%
Maturity period for variable interest loans	30 years

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Nov. 09, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2019
Subsequent events
Shares repurchased and cancelled, value		$ 4,168	$ 10,011	$ 11,544
Common stock
Subsequent events
Shares repurchased and canceled		421,581	1,034,792	1,212,574	2,668,947
Shares repurchased and cancelled, value		$ 4,168	$ 10,011	$ 11,544	$ 25,723
Subsequent Events | Common stock
Subsequent events
Shares repurchased and canceled	221,859
Shares repurchased and cancelled, value	$ 2,200