Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | First Choice Bancorp | |
Entity Central Index Key | 0001716697 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 11,655,908 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 13,918 | $ 17,874 |
Interest-bearing deposits at other banks | 166,697 | 176,502 |
Federal funds sold | 0 | 3,000 |
Total cash and cash equivalents | 180,615 | 197,376 |
Securities available-for-sale, at fair value | 27,344 | 29,543 |
Securities held-to-maturity, at cost | 5,066 | 5,322 |
Equity securities, at fair value | 2,681 | 2,538 |
Restricted stock investments, at cost | 12,970 | 12,855 |
Loans held for sale, at lower of cost or fair value | 11,906 | 28,022 |
Loans held for investment | 1,316,620 | 1,250,981 |
Allowance for loan losses | (12,340) | (11,056) |
Loans held for investment, net | 1,304,280 | 1,239,925 |
Accrued interest receivable | 5,477 | 5,069 |
Premises and equipment | 1,796 | 1,973 |
Servicing asset | 3,370 | 3,186 |
Deferred taxes, net | 6,397 | 8,666 |
Goodwill | 73,425 | 73,425 |
Core deposit intangible | 5,986 | 6,576 |
Other assets | 14,282 | 8,025 |
TOTAL ASSETS | 1,655,595 | 1,622,501 |
Deposits: | ||
Noninterest-bearing demand | 666,271 | 546,713 |
Money market, interest checking and savings | 404,518 | 465,123 |
Time deposits | 268,749 | 240,503 |
Total deposits | 1,339,538 | 1,252,339 |
Borrowings | 30,000 | 104,998 |
Senior secured debt | 13,100 | 8,450 |
Accrued interest payable and other liabilities | 14,287 | 8,645 |
Total liabilities | 1,396,925 | 1,374,432 |
Commitments and contingencies - Note 10 | ||
Shareholders’ equity: | ||
Preferred stock 100,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock no par value; 100,000,000 shares authorized; issued and outstanding: 11,652,582 at September 30, 2019 and 11,726,074 at December 31, 2018 | 216,792 | 217,514 |
Additional paid-in capital | 2,973 | 7,269 |
Retained earnings | 38,865 | 23,985 |
Accumulated other comprehensive income (loss), net | 40 | (699) |
Total shareholders’ equity | 258,670 | 248,069 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,655,595 | $ 1,622,501 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 11,652,582 | 11,726,074 |
Common stock, shares outstanding (in shares) | 11,652,582 | 11,726,074 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST and DIVIDEND INCOME | |||||
Interest and fees on loans | $ 23,206 | $ 21,344 | $ 17,296 | $ 65,466 | $ 40,237 |
Interest on investment securities | 208 | 215 | 226 | 659 | 698 |
Interest on deposits in other financial institutions | 701 | 454 | 621 | 1,600 | 1,176 |
Dividends on FHLB and other stock | 228 | 206 | 46 | 676 | 182 |
Total interest and dividend income | 24,343 | 22,219 | 18,189 | 68,401 | 42,293 |
INTEREST EXPENSE | |||||
Interest on savings, interest checking and money market accounts | 1,283 | 1,254 | 1,223 | 3,776 | 3,012 |
Interest on time deposits | 1,605 | 1,463 | 1,072 | 4,073 | 2,607 |
Interest on borrowings | 429 | 666 | 98 | 1,498 | 508 |
Total interest expense | 3,317 | 3,383 | 2,393 | 9,347 | 6,127 |
Net interest income | 21,026 | 18,836 | 15,796 | 59,054 | 36,166 |
Provision for loan losses | 700 | 550 | 600 | 1,600 | 1,120 |
Net interest income after provision for loan losses | 20,326 | 18,286 | 15,196 | 57,454 | 35,046 |
NONINTEREST INCOME | |||||
Gain on sale of loans | 528 | 1,271 | 171 | 2,727 | 866 |
Service charges and fees on deposit accounts | 521 | 438 | 1,712 | 878 | |
Net servicing fees | 242 | 287 | 39 | 763 | 318 |
Other income | 428 | 200 | 122 | 1,048 | 81 |
Total noninterest income | 1,673 | 2,322 | 712 | 6,117 | 2,068 |
NONINTEREST EXPENSE | |||||
Salaries and employee benefits | 6,472 | 6,857 | 5,045 | 19,552 | 12,547 |
Occupancy and equipment | 1,097 | 987 | 898 | 3,513 | 1,999 |
Data processing | 718 | 639 | 666 | 1,961 | 1,536 |
Professional fees | 392 | 426 | 400 | 1,237 | 1,082 |
Office, postage and telecommunications | 253 | 255 | 256 | 780 | 641 |
Deposit insurance and regulatory assessments | 30 | 120 | 143 | 345 | 339 |
Loan related | 244 | 71 | 142 | 529 | 327 |
Customer service related | 437 | 273 | 208 | 1,187 | 448 |
Merger, integration and public company registration costs | 0 | 0 | 3,797 | 0 | 4,527 |
Amortization of core deposit intangible | 197 | 197 | 133 | 590 | |
Other expenses | 811 | 780 | 684 | 2,262 | 1,801 |
Total noninterest expense | 10,651 | 10,605 | 12,372 | 31,956 | 25,380 |
Income before taxes | 11,348 | 10,003 | 3,536 | 31,615 | 11,734 |
Income taxes | 3,277 | 3,192 | 932 | 9,725 | 3,317 |
Net income | $ 8,071 | $ 6,811 | $ 2,604 | $ 21,890 | $ 8,417 |
Net income per share: | |||||
Basic (in usd per share) | $ 0.69 | $ 0.58 | $ 0.26 | $ 1.87 | $ 1.02 |
Diluted (in usd per share) | $ 0.68 | $ 0.58 | $ 0.25 | $ 1.85 | $ 1.01 |
Weighted-average common shares outstanding: | |||||
Basic (in shares) | 11,584,955 | 11,581,889 | 10,144,954 | 11,605,687 | 8,170,234 |
Diluted (in shares) | 11,659,146 | 11,675,057 | 10,357,069 | 11,714,020 | 8,268,763 |
Service charges and fees on deposit accounts | |||||
NONINTEREST INCOME | |||||
Service charges and fees on deposit accounts | $ 475 | $ 564 | $ 380 | $ 1,579 | $ 803 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 8,071 | $ 6,811 | $ 2,604 | $ 21,890 | $ 8,417 |
Unrealized gain (loss) on investment securities: | |||||
Change in net unrealized gain (loss) on available-for-sale securities | 177 | 534 | (213) | 1,050 | (738) |
Related income taxes: | |||||
Change in net unrealized gain (loss) on available-for-sale securities | (52) | (159) | 63 | (311) | 218 |
Total other comprehensive income (loss) | 125 | 375 | (150) | 739 | (520) |
Total comprehensive net income | $ 8,196 | $ 7,186 | $ 2,454 | $ 22,629 | $ 7,897 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2017 | 7,260,119 | ||||
Beginning balance at Dec. 31, 2017 | $ 105,694 | $ 87,837 | $ 1,940 | $ 16,459 | $ (542) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,417 | 8,417 | |||
Stock and fair value of replacement awards issued in connection with business combination (in shares) | 4,386,816 | ||||
Stock and fair value of replacement awards issued in connection with business combination | 133,273 | $ 125,902 | 7,371 | ||
Stock-based compensation | 1,300 | 1,296 | 4 | ||
Cash dividends | $ (5,232) | (5,232) | |||
Exercise of stock options (in shares) | 74,343 | 74,343 | |||
Exercise of stock options | $ 753 | $ 2,126 | (1,373) | ||
Issuance of restricted shares, net of forfeitures (in shares) | 11,723 | ||||
Vesting of restricted shares | 0 | $ 1,487 | (1,487) | ||
Repurchase of shares from restricted shares vesting (in shares) | (12,419) | ||||
Repurchase of shares from restricted shares vesting | (308) | (308) | |||
Other comprehensive income (loss), net of taxes | (520) | (520) | |||
Ending balance (in shares) at Sep. 30, 2018 | 11,720,582 | ||||
Ending balance at Sep. 30, 2018 | 243,377 | $ 217,352 | 7,439 | 19,624 | (1,038) |
Beginning balance (in shares) at Jun. 30, 2018 | 7,253,787 | ||||
Beginning balance at Jun. 30, 2018 | 108,819 | $ 89,215 | 1,143 | 19,349 | (888) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,604 | 2,604 | |||
Stock and fair value of replacement awards issued in connection with business combination (in shares) | 4,386,816 | ||||
Stock and fair value of replacement awards issued in connection with business combination | 133,273 | $ 125,902 | 7,371 | ||
Stock-based compensation | 409 | 408 | 1 | ||
Cash dividends | $ (2,329) | (2,329) | |||
Exercise of stock options (in shares) | 74,343 | 74,343 | |||
Exercise of stock options | $ 753 | $ 2,126 | (1,373) | ||
Issuance of restricted shares, net of forfeitures (in shares) | 5,636 | ||||
Vesting of restricted shares | $ 109 | (109) | |||
Repurchase of shares from restricted shares vesting (in shares) | 0 | ||||
Repurchase of shares from restricted shares vesting | (1) | (1) | |||
Other comprehensive income (loss), net of taxes | (150) | (150) | |||
Ending balance (in shares) at Sep. 30, 2018 | 11,720,582 | ||||
Ending balance at Sep. 30, 2018 | 243,377 | $ 217,352 | 7,439 | 19,624 | (1,038) |
Beginning balance (in shares) at Dec. 31, 2018 | 11,726,074 | ||||
Beginning balance at Dec. 31, 2018 | 248,069 | $ 217,514 | 7,269 | 23,985 | (699) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 21,890 | 21,890 | |||
Stock-based compensation | 1,496 | 1,493 | 3 | ||
Cash dividends | $ (7,013) | (7,013) | |||
Exercise of stock options (in shares) | 244,249 | 244,249 | |||
Exercise of stock options | $ 2,588 | $ 6,863 | (4,275) | ||
Issuance of restricted shares, net of forfeitures (in shares) | 103,537 | ||||
Vesting of restricted shares | $ 0 | $ 1,406 | (1,406) | ||
Repurchase of shares from restricted shares vesting (in shares) | (416,270) | (5,008) | |||
Repurchase of shares from restricted shares vesting | $ (108) | (108) | |||
Common stock repurchased under stock repurchase program (in shares) | (416,270) | ||||
Common stock repurchased under stock repurchase program | (8,991) | $ (8,991) | |||
Other comprehensive income (loss), net of taxes | 739 | 739 | |||
Ending balance (in shares) at Sep. 30, 2019 | 11,652,582 | ||||
Ending balance at Sep. 30, 2019 | 258,670 | $ 216,792 | 2,973 | 38,865 | 40 |
Beginning balance (in shares) at Jun. 30, 2019 | 11,737,441 | ||||
Beginning balance at Jun. 30, 2019 | 254,121 | $ 218,532 | 2,588 | 33,086 | (85) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,071 | 8,071 | |||
Stock-based compensation | 527 | 527 | 0 | ||
Cash dividends | $ (2,292) | (2,292) | |||
Exercise of stock options (in shares) | 2,512 | 2,512 | |||
Exercise of stock options | $ 29 | $ 52 | (23) | ||
Issuance of restricted shares, net of forfeitures (in shares) | 129 | ||||
Vesting of restricted shares | $ 119 | (119) | |||
Repurchase of shares from restricted shares vesting (in shares) | (87,500) | ||||
Common stock repurchased under stock repurchase program (in shares) | (87,500) | ||||
Common stock repurchased under stock repurchase program | $ (1,911) | $ (1,911) | |||
Other comprehensive income (loss), net of taxes | 125 | 125 | |||
Ending balance (in shares) at Sep. 30, 2019 | 11,652,582 | ||||
Ending balance at Sep. 30, 2019 | $ 258,670 | $ 216,792 | $ 2,973 | $ 38,865 | $ 40 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends (in usd per share) | $ 0.2 | $ 0.2 | $ 0.60 | $ 0.60 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 21,890 | $ 8,417 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,231 | 509 |
Amortization of premiums of investment securities | 129 | 152 |
Amortization of servicing asset | 699 | 753 |
Provision for loan losses | 1,600 | 1,120 |
Provision for losses - unfunded commitments | 0 | 53 |
Gain on sale of loans | (2,727) | (866) |
Loss on disposal of fixed assets | 31 | 6 |
Impairment charges of fixed assets and right-of-use assets | 400 | |
Loans originated for sale | (28,626) | (26,934) |
Proceeds from loans originated for sale | 47,364 | 12,047 |
Accretion of net discounts and deferred loan fees, net | (5,304) | (2,672) |
Change in fair value of equity securities | (88) | 140 |
Deferred income taxes | 1,958 | 1,585 |
Stock-based compensation | 1,496 | 1,300 |
Appreciation of Bank Owned Life Insurance | (80) | (18) |
Net (decrease) increase in other items, net | (827) | 674 |
Net cash provided by (used in) operating activities | 39,146 | (3,734) |
INVESTING ACTIVITIES | ||
Cash acquired in business combination | 0 | 111,035 |
Proceeds from maturities and paydown of securities available-for-sale | 3,132 | 2,982 |
Proceeds from maturities and paydown of securities held-to-maturity | 244 | 30 |
Purchase of securities available-for-sale | 0 | (1,185) |
Proceeds from sale of securities available-for-sale | 0 | 1,237 |
Net increase in loans held-for-investment | (61,428) | (82,142) |
(Purchase) Redemption of restricted stock investments | (115) | 1,653 |
Purchase of equity and qualified CRA investments | (388) | (192) |
Proceeds from disposal of premises and equipment | 0 | 6 |
Purchases of premises and equipment | (679) | (767) |
Net cash (used in) provided by investing activities | (59,234) | 32,657 |
FINANCING ACTIVITIES | ||
Net increase in deposits | 87,199 | 59,506 |
Net decrease in borrowings | (74,998) | (5,000) |
Increase in senior secured notes | 4,650 | 12,200 |
Cash dividends paid | (7,013) | (5,232) |
Repurchase of shares | (9,099) | (308) |
Proceeds from exercise of stock options | 2,588 | 753 |
Net cash provided by financing activities | 3,327 | 61,919 |
Net (decrease) increase in cash and cash equivalents | (16,761) | 90,842 |
Cash and cash equivalents, beginning of period | 197,376 | 103,132 |
Cash and cash equivalents, end of period | 180,615 | 193,974 |
Cash paid during the period for: | ||
Interest paid | 9,173 | 5,873 |
Taxes paid | 8,013 | 4,100 |
Noncash investing and financing activities: | ||
Transfers of loans to (from) held for investment from (to) held for sale | 195 | |
Transfers of loans to (from) held for investment from (to) held for sale | (51) | |
Servicing rights asset recognized | 883 | 243 |
Transfer of securities available-for-sale to equity securities | 0 | 2,540 |
Issuance of common stock for acquisition, including stock option consideration | 0 | $ 133,273 |
Initial recognition of operating lease right-of-use assets | 6,022 | |
Initial recognition of operating lease liabilities | $ 6,141 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations First Choice Bancorp, headquartered in Cerritos, California, is a California corporation that was incorporated on September 1, 2017 and is the registered bank holding company for First Choice Bank. Incorporated in March 2005 and commencing commercial bank operations in August 2005, First Choice Bank is a California-chartered member bank. References herein to “First Choice Bancorp,” “Bancorp” or the “holding company,” refer to First Choice Bancorp on a stand-alone basis. The words “we," "us," "our," or the "Company" refer to First Choice Bancorp and First Choice Bank collectively and on a consolidated basis. References to the “Bank” refer to First Choice Bank on a stand-alone basis. Headquartered in Cerritos, California, the Bank is a community-based financial institution that serves commercial and consumer clients in diverse communities. The Bank specializes in loans to small- to medium-sized businesses and private banking clients, commercial and industrial loans, and commercial real estate loans with a specialization in providing financial solutions for the hospitality industry. The Bank is a Preferred Small Business Administration (“SBA”) Lender. The Bank conducts business through 9 full-service branches and 2 loan production offices located in Los Angeles, Orange and San Diego Counties. Effective May 17, 2019, the Little Tokyo branch was closed and consolidated with the 6th and Figueroa branch located in downtown Los Angeles and the San Diego branch operations were consolidated into the Carlsbad branch. The San Diego location remains as a loan production office. Effective July 31, 2018, we acquired Pacific Commerce Bancorp (“PCB”) and its wholly-owned subsidiary bank, Pacific Commerce Bank, by merger in an all-stock transaction. The acquisition has been accounted for using the acquisition method of accounting and, accordingly, the operating results of PCB have been included in the consolidated financial statements since August 1, 2018. As a California-chartered member bank, the Bank is primarily regulated by the California Department of Business Oversight (the “DBO”) and the Board of Governors of the Federal Reserve System (the “FRB”). The Bank’s deposits are insured up to the maximum legal limit by the Federal Deposit Insurance Corporation (the “FDIC”). First Choice Bancorp's stock is traded on the Nasdaq Capital Market under the ticker symbol “FCBP.” Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Bancorp and the Bank and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. These interim period condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the years ended December 31, 2018 and 2017 , which are included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC"). All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the condensed consolidated income statement for the three and nine months ended September 30, 2018 to conform to the September 30, 2019 presentation. For the three and nine months ended September 30, 2018 , these reclassifications include: (i) $97 thousand and $289 thousand of stock-based compensation expense for stock options and restricted stock awards for directors that were previously reported in salaries and employee benefits expense and are now included in other expenses; and (ii) $7 thousand and $21 thousand of rental income that were previously reported in occupancy and equipment expense and are now included in other income. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change are the determination of the allowance for loan losses, the valuation of acquired loans, the valuation of goodwill and separately identifiable intangible assets associated with mergers and acquisitions, and the valuation of deferred tax assets. Accounting Policies Except for the update to reflect the impact of the adoption of ASU 2016-02, Leases (Topic 842) effective January 1, 2019, discussed below, there were no significant changes to our accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018 under the section entitled "Summary of Critical Accounting Policies," and Note 1 - Basis of Presentation and Summary of Significant Accounting Policies to the audited consolidated financial statements included therewith. Leases We determine if an arrangement contains a lease at contract inception and recognize a right-of-use ("ROU") asset and operating lease liability based on the present value of lease payments over the lease term. While our operating leases may include options to extend the term, these options are not included when calculating the ROU asset and lease liability unless we are reasonably certain we will exercise such options. Most of our leases do not provide an implicit rate and, therefore, we determine the present value of lease payments by using our incremental borrowing rate, currently our FHLB secured borrowing rate for the remaining lease term, and other information available at lease commencement. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets. Lease expense is recognized on a straight line basis over the lease term. We have lease agreements with lease and non-lease components for which we have elected to account for as a single lease component. Refer to – Accounting Standards Adopted in 2019 below and Note 6. Leases for further discussion on our leasing arrangements and related accounting. Accounting Standards Adopted in 2019 We adopted ASU 2016-02, Leases (Topic 842) and ASU 2018-11, Leases (Topic 842): Targeted Improvements, referred to herein as Topic 842, effective January 1, 2019. The new guidance establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Entities are required to recognize ROU assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. Under the amendments in ASU 2018-11, entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard. Upon adoption, we elected to use the modified retrospective transition approach and recorded ROU assets of $6.0 million and lease liabilities of $6.1 million at the date of adoption with no adjustment to opening equity. We elected to apply the package of practical expedients which permits entities to not reassess: (i) whether any expired or existing contracts contain a lease; (ii) lease classification for any expired or existing leases; and (iii) whether initial direct costs for any existing leases qualify for capitalization under the amended guidance. We also elected not to include short-term leases (leases with initial terms of 12 months or less) on the consolidated balance sheets. Recent Accounting Guidance Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) (“ASU 2016-13”), also known as "CECL". This guidance will replace the incurred loss impairment methodology used to estimate the allowance for credit losses in current GAAP with a methodology that reflects future expected credit losses and requires consideration of a broader range of reasonable and supportable forecasts in the credit loss estimates. On October 16, 2019, the FASB decided to delay the effective date of ASU 2016-13 for smaller reporting companies, private companies and other non-SEC filers. We are considered a smaller reporting company. Therefore, this ASU will be effective for the Company on January 1, 2023 with early adoption permitted. Management continues to have a cross functional committee in place to oversee the project, has selected software to implement the new guidance, and has engaged an existing third-party service provider to assist in implementation. We have completed data gap analyses, developed initial modeling assumptions, and run a high level sensitivity analysis. We expect to run parallel calculations, testing, and further sensitivity analysis beginning in the first quarter of 2020. We have not yet determined the potential impact of the adoption of ASU 2016-13 to our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the current goodwill impairment test. Step 2 currently measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. On October 16, 2019, the FASB decided to delay the effective date of ASU 2017-04 for smaller reporting companies, private companies and other non-SEC filers. We are considered a smaller reporting company. Therefore, this ASU will be effective for the Company on January 1, 2023. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of ASU 2017-04 to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). The primary objective of ASU 2018-13 is to improve the effectiveness of disclosures in the notes to financial statements. ASU 2018-13 will be effective on January 1, 2020, although early adoption is permitted. The adoption of ASU 2018-13 is not expected to significantly impact our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ("ASU 2018-15"). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 will be effective on January 1, 2020, including interim periods within the years of adoption although early adoption is permitted. ASU 2018-15 is not expected to significantly impact our condensed consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS In connection with the acquisition of PCB, we recognized goodwill of $73.4 million and a core deposit intangible ("CDI") of $6.9 million on July 31, 2018. There were no changes in the carrying amount of goodwill during 2019 and 2018 . For the three and nine months ended September 30, 2019 , we recognized CDI amortization of $197 thousand and $590 thousand and $133 thousand for the three and nine months ended September 30, 2018 . No impairment was recognized. The following table presents the changes in CDI for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended 2019 2018 2019 2018 (dollars in thousands) Core deposit intangible: Gross balance, beginning of period $ 6,908 $ — $ 6,908 $ — Additions — 6,908 — 6,908 Gross balance, end of period $ 6,908 $ 6,908 $ 6,908 $ 6,908 Accumulated amortization: Balance, beginning of period (725 ) — (332 ) — Amortization (197 ) (133 ) (590 ) (133 ) Balance, end of period $ (922 ) $ (133 ) $ (922 ) $ (133 ) Net core deposit intangible, end of period $ 5,986 $ 6,775 $ 5,986 $ 6,775 The following table shows the estimated amortization expense for CDI during the next five fiscal years: Year Ended December 31, (dollars in thousands) Remainder 2019 $ 196 2020 771 2021 753 2022 732 2023 707 Thereafter 2,827 $ 5,986 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES Investment securities have been classified in the condensed consolidated balance sheets according to management’s intent to either hold them to maturity or make them available for sale. The carrying amount of securities held-to-maturity and securities available-for-sale and their approximate fair values at September 30, 2019 and December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2019 (dollars in thousands) Securities available-for-sale: Mortgage-backed securities $ 8,057 $ 25 $ (104 ) $ 7,978 Collateralized mortgage obligations 10,293 46 (33 ) 10,306 SBA pools 8,937 133 (10 ) 9,060 $ 27,287 $ 204 $ (147 ) $ 27,344 Securities held-to-maturity: U.S. Government and agency securities $ 3,342 $ — $ (1 ) $ 3,341 Mortgage-backed securities 1,724 60 (15 ) 1,769 $ 5,066 $ 60 $ (16 ) $ 5,110 December 31, 2018 Securities available-for-sale: Mortgage-backed securities $ 9,177 $ — $ (333 ) $ 8,844 Collateralized mortgage obligations 11,731 2 (272 ) 11,461 SBA pools 9,628 — (390 ) 9,238 $ 30,536 $ 2 $ (995 ) $ 29,543 Securities held-to-maturity: U.S. Government and agency securities $ 3,340 $ — $ (122 ) $ 3,218 Mortgage-backed securities 1,982 — (105 ) 1,877 $ 5,322 $ — $ (227 ) $ 5,095 The amortized cost and estimated fair value of all investment securities held-to-maturity and available-for-sale at September 30, 2019 , by contractual maturities are shown below. Contractual maturities may differ from expected maturities because the obligors and/or issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Due in one year or less $ — $ — $ — $ — Due after one year through five years 3,342 3,341 — — Due after five years through ten years — — — — Due after ten years (1) 1,724 1,769 27,287 27,344 $ 5,066 $ 5,110 $ 27,287 $ 27,344 (1) Mortgage-backed securities, collateralized mortgage obligations and SBA pools do not have a single stated maturity date and, therefore, have been included in the "Due after ten years" category. At September 30, 2019 and December 31, 2018 , there were no holdings of securities of any one issuer in an amount greater than 10% of our shareholders’ equity. There were no purchases, sales, maturities or calls of any investment securities available-for-sale or held-to-maturity during the three and nine months ended September 30, 2019 . There were $1.2 million in sales and $1.2 million in purchases of investment securities available-for-sale during the three and nine months ended September 30, 2018 and no maturities or calls of any investment securities available-for-sale or held-to-maturity during the same period of 2018 . At September 30, 2019 securities held-to-maturity with a carrying amount of $5.1 million were pledged to the Federal Reserve Bank as discussed in Note 8 – Borrowing Arrangements . As of September 30, 2019 and December 31, 2018 , unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value September 30, 2019 (dollars in thousands) Securities available-for-sale: Mortgage-backed securities $ — $ — $ (104 ) $ 6,525 $ (104 ) $ 6,525 Collateralized mortgage obligations — — (33 ) 2,347 (33 ) 2,347 SBA pools (10 ) 3,144 — — (10 ) 3,144 $ (10 ) $ 3,144 $ (137 ) $ 8,872 $ (147 ) $ 12,016 Securities held-to-maturity: U.S. Government and agency securities $ (1 ) $ 3,341 $ — $ — $ (1 ) $ 3,341 Mortgage-backed securities — — (15 ) 795 (15 ) 795 $ (1 ) $ 3,341 $ (15 ) $ 795 $ (16 ) $ 4,136 December 31, 2018 Securities available-for-sale: Mortgage-backed securities $ (20 ) $ 2,397 $ (313 ) $ 6,447 $ (333 ) $ 8,844 Collateralized mortgage obligations (3 ) 1,127 (269 ) 9,742 (272 ) 10,869 SBA pools — — (390 ) 9,238 (390 ) 9,238 $ (23 ) $ 3,524 $ (972 ) $ 25,427 $ (995 ) $ 28,951 Securities held-to-maturity: U.S. Government and agency securities $ — $ — $ (122 ) $ 3,218 $ (122 ) $ 3,218 Mortgage-backed securities — — (105 ) 1,877 (105 ) 1,877 $ — $ — $ (227 ) $ 5,095 $ (227 ) $ 5,095 At September 30, 2019 , we had 13 investment securities in an unrealized loss position with total unrealized losses of $163 thousand . Such unrealized losses on these investment securities have not been recognized into income. We do not believe these unrealized losses are other-than-temporary because the issuers’ bonds are above investment grade, the decline in fair value is largely due to changes in interest rates, and management does not intend to sell these securities nor is it more likely than not that management would be required to sell the securities prior to their anticipated recovery. Equity Securities with a Readily Determinable Fair Value At September 30, 2019 and December 31, 2018 , equity securities with a readily determinable fair value of $2.7 million and $2.5 million represent a mutual fund investment consisting of high quality debt securities and other debt instruments supporting domestic affordable housing and community development. With the adoption of ASU 2016-01 on January 1, 2018, we recorded a transition adjustment to reclassify $24 thousand in net unrealized losses from accumulated other comprehensive income to retained earnings for these investments. In addition, we recognized net gains of $14 thousand and net losses of $23 thousand related to changes in fair value during the three months ended September 30, 2019 and 2018 , all of which related to equity securities held during those periods. During the nine months ended September 30, 2019 and 2018 , we recognized net gains of $88 thousand and net losses of $94 thousand related to changes in fair value. Restricted Stock and Other Bank Stock Investments The Bank is a member of the FHLB system. Members are required to own FHLB stock of the greater of 1% of FHLB membership asset value or 2.7% of outstanding FHLB advances. At September 30, 2019 and December 31, 2018 , the Bank owned $6.1 million of FHLB stock which is carried at cost. During the three and nine months ended September 30, 2019 , there were no required purchases of FHLB stock. We evaluated the carrying value of our FHLB stock investment at September 30, 2019 and determined that it was not impaired. This evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB, repurchase activity of excess stock by the FHLB at its carrying value, the return on the investment from recurring and special dividends, and our intent and ability to hold this investment for a period of time sufficient to recover our recorded investment. As a member of the Board of Governors of the Federal Reserve System ("FRB"), the Bank owned $6.8 million and $6.7 million of FRB stock, which is carried at cost, at September 30, 2019 and December 31, 2018 . The Bank purchased $43 thousand and $115 thousand of FRB stock during the three and nine months ended September 30, 2019 . We evaluated the carrying value of our FRB stock investment at September 30, 2019 and determined that it was not impaired. This evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FRB, repurchase activity of excess stock by the FRB at its carrying value, the return on the investment from recurring dividends, and our intent and ability to hold this investment for a period of time sufficient to recover our recorded investment. The Bank also has restricted securities in the form of capital stock invested in two different banker’s bank stocks (collectively "Other Bank Stocks") which totaled $1.0 million at September 30, 2019 and December 31, 2018 and are reported in other assets in the condensed consolidated balance sheets. During the three and nine months ended September 30, 2019 , there were no changes in the fair value of these equity securities. There was no loss recognized related to changes in the fair value of these equity securities during the three months ended September 30, 2018 and a $46 thousand loss related to changes in the fair value of these equity securities for the nine months ended September 30, 2018 . |
Loans
Loans | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans | LOANS Our loan portfolio consists primarily of loans to borrowers within our principal market area which includes Los Angeles County, Orange County and San Diego County, California. Although we seek to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses, such as hospitality businesses, are among the principal industries in our market area and, as a result, our loan and collateral portfolios are, to some degree, concentrated in those industries. We also originate SBA loans either for sale to institutional investors or to hold in the loan portfolio. Loans identified as held for sale are carried at the lower of their net carrying value or market value and separately designated as such in the condensed consolidated financial statements. A portion of our revenues are from origination of loans guaranteed by the SBA under its various programs and sale of the guaranteed portions of the loans. Funding for these loans depends on annual appropriations by the U.S. Congress. As of September 30, 2019 , we had certain qualifying loans with an unpaid principal balance of $879.1 million pledged as collateral under a secured borrowing arrangement with the FHLB, and $226.9 million of loans with an unpaid principal balance pledged as collateral under a secured borrowing arrangement with the FRB. See Note 8 – Borrowing Arrangements for additional information regarding the FHLB and FRB secured lines of credit. The loans held for investment portfolio includes originated and acquired loans. The acquired loans includes: (i) loans that were not credit impaired on the date of acquisition; and (ii) purchased credit impaired ("PCI") loans, which are defined as loans with evidence of credit deterioration since their originations and for which it is probable that collection of all contractually required payments are unlikely as of the acquisition date. The following table presents loans held for investment, net by loan class at September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Loans PCI Loans Total Loans PCI Loans Total (dollars in thousands) Construction and land development $ 221,857 $ — $ 221,857 $ 184,177 $ — $ 184,177 Real estate: Residential 48,896 — 48,896 57,443 — 57,443 Commercial real estate - owner occupied 171,250 110 171,360 179,362 132 179,494 Commercial real estate - non-owner occupied 401,710 — 401,710 400,590 1,075 401,665 Commercial and industrial 310,699 506 311,205 281,121 597 281,718 SBA loans 161,044 564 161,608 145,622 840 146,462 Consumer 424 — 424 159 — 159 Loans held for investment, net of discounts 1,315,880 1,180 1,317,060 1,248,474 2,644 1,251,118 Net deferred origination fees (440 ) — (440 ) (137 ) — (137 ) Loans held for investment $ 1,315,440 $ 1,180 $ 1,316,620 $ 1,248,337 $ 2,644 $ 1,250,981 Allowance for loan losses (12,340 ) — (12,340 ) (11,056 ) — (11,056 ) Loans held for investment, net $ 1,303,100 $ 1,180 $ 1,304,280 $ 1,237,281 $ 2,644 $ 1,239,925 The following table presents the components of loans held for investment at September 30, 2019 and December 31, 2018 : September 30, December 31, (dollars in thousands) Gross loans (1) $ 1,328,031 $ 1,263,891 Unamortized net discounts (2) (10,971 ) (12,773 ) Net unamortized deferred origination fees (440 ) (137 ) Loans held for investment $ 1,316,620 $ 1,250,981 (1) Gross loans include the net carrying value of PCI loans of $1.2 million and $2.6 million at September 30, 2019 and December 31, 2018 . (2) Unamortized net discounts include discounts related to the retained portion of SBA loans and net discounts on Non-PCI acquired loans. At September 30, 2019 , net discounts related to loans acquired in the PCB acquisition totaled $7.6 million and are expected to be accreted into interest income over a weighted average life of 5.1 years . At December 31, 2018, net discounts related to loans acquired in the PCB acquisition totaled $9.5 million . The following table presents a summary of the changes in the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (dollars in thousands) Balance, beginning of period $ 12,053 $ 10,376 $ 11,056 $ 10,497 Provision for loan losses 700 600 1,600 1,120 Charge-offs (437 ) (358 ) (561 ) (1,133 ) Recoveries 24 38 245 172 Net charge-offs (413 ) (320 ) (316 ) (961 ) Balance, end of period $ 12,340 $ 10,656 $ 12,340 $ 10,656 The following tables present the activity in the allowance for loan losses, the composition of the period end allowance, and the loans evaluated for impariment by loan class for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, 2019 Real Estate Construction and Land Development Residential Commercial - Owner Occupied Commercial - Non-owner Occupied Commercial and Industrial SBA Loans Consumer Total (dollars in thousands) Balance, June 30, 2019 $ 1,892 $ 379 $ 905 $ 2,587 $ 4,502 $ 1,788 $ — $ 12,053 Provision for (reversal of) loan losses 247 (47 ) (107 ) (179 ) 384 399 3 700 Charge-offs — — — — (437 ) — — (437 ) Recoveries — — — — 24 — — 24 Net charge-offs — — — — (413 ) — — (413 ) Balance, September 30, 2019 $ 2,139 $ 332 $ 798 $ 2,408 $ 4,473 $ 2,187 $ 3 $ 12,340 Reserves: Specific $ — $ — $ — $ — $ — $ 624 $ — $ 624 General 2,139 332 798 2,408 4,473 1,563 3 11,716 $ 2,139 $ 332 $ 798 $ 2,408 $ 4,473 $ 2,187 $ 3 $ 12,340 Loans evaluated for impairment: Individually $ — $ — $ — $ — $ 730 $ 7,002 $ — $ 7,732 Collectively 221,857 48,896 171,250 401,710 309,969 154,042 424 1,308,148 PCI loans — — 110 — 506 564 — 1,180 $ 221,857 $ 48,896 $ 171,360 $ 401,710 $ 311,205 $ 161,608 $ 424 $ 1,317,060 Three Months Ended September 30, 2018 Real Estate Construction and Land Development Residential Commercial - Owner Occupied Commercial - Non-owner Occupied Commercial and Industrial SBA Loans Consumer Total (dollars in thousands) Balance, June 30, 2018 $ 1,603 $ 384 $ 637 $ 2,755 $ 3,288 $ 1,709 $ — $ 10,376 Provision for (reversal of) loan losses 295 28 141 70 (215 ) 281 — 600 Charge-offs — — — — (8 ) (350 ) — (358 ) Recoveries — — — — 38 — — 38 Net recoveries (charge-offs) — — — — 30 (350 ) — (320 ) Balance, September 30, 2018 $ 1,898 $ 412 $ 778 $ 2,825 $ 3,103 $ 1,640 $ — $ 10,656 Reserves: Specific $ — $ — $ — $ — $ — $ — $ — $ — General 1,898 412 778 2,825 3,103 1,640 — 10,656 $ 1,898 $ 412 $ 778 $ 2,825 $ 3,103 $ 1,640 $ — $ 10,656 Loans evaluated for impairment: Individually $ — $ — $ — $ — $ 95 $ 1,032 $ — $ 1,127 Collectively 172,938 60,570 180,985 391,536 269,921 145,440 — 1,221,390 PCI loans — — 104 1,383 645 887 — 3,019 $ 172,938 $ 60,570 $ 181,089 $ 392,919 $ 270,661 $ 147,359 $ — $ 1,225,536 Nine Months Ended September 30, 2019 Real Estate Construction and Land Development Residential Commercial - Owner Occupied Commercial - Non-owner Occupied Commercial and Industrial SBA Loans Consumer Total (dollars in thousands) Balance, December 31, 2018 $ 1,721 $ 422 $ 734 $ 2,686 $ 3,686 $ 1,807 $ — $ 11,056 Provision for (reversal of) loan losses 418 (90 ) 64 (278 ) 1,292 191 3 1,600 Charge-offs — — — — (561 ) — — (561 ) Recoveries — — — — 56 189 — 245 Net (charge-offs) recoveries — — — — (505 ) 189 — (316 ) Balance, September 30, 2019 $ 2,139 $ 332 $ 798 $ 2,408 $ 4,473 $ 2,187 $ 3 $ 12,340 Nine Months Ended September 30, 2018 Real Estate Construction and Land Development Residential Commercial - Owner Occupied Commercial - Non-owner Occupied Commercial and Industrial SBA Loans Consumer Total (dollars in thousands) Balance, December 31, 2017 $ 1,597 $ 375 $ 655 $ 3,136 $ 3,232 $ 1,494 $ 8 $ 10,497 Provision for (reversal of) loan losses 301 37 123 (311 ) 221 757 (8 ) 1,120 Charge-offs — — — — (522 ) (611 ) — (1,133 ) Recoveries — — — — 172 — — 172 Net charge-offs — — — — (350 ) (611 ) — (961 ) Balance, September 30, 2018 $ 1,898 $ 412 $ 778 $ 2,825 $ 3,103 $ 1,640 $ — $ 10,656 We categorize loans by risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. We use the following definitions for risk ratings: Pass - Loans classified as pass represent assets with a level of credit quality which contain no well-defined deficiency or weakness. Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, highly questionable and improbable. Loss - Loans classified loss are considered uncollectible and of such little value that their continuance as loans is not warranted. The following tables present loans held for investment, net of discounts by loan class and risk category, excluding PCI loans, as of September 30, 2019 and December 31, 2018 : September 30, 2019 Pass Special Mention Substandard (1) Total (dollars in thousands) Construction and land development $ 221,857 $ — $ — $ 221,857 Real estate: Residential 48,896 — — 48,896 Commercial real estate - owner occupied 166,085 — 5,165 171,250 Commercial real estate - non-owner occupied 400,862 — 848 401,710 Commercial and industrial 305,226 — 5,473 310,699 SBA loans 150,719 — 10,325 161,044 Consumer 424 — — 424 $ 1,294,069 $ — $ 21,811 $ 1,315,880 (1) At September 30, 2019 , substandard loans included $7.4 million of impaired loans. December 31, 2018 Pass Special Mention Substandard (1) Total (dollars in thousands) Construction and land development $ 184,177 $ — $ — $ 184,177 Real estate: Residential 57,443 — — 57,443 Commercial real estate - owner occupied 174,505 4,857 — 179,362 Commercial real estate - non-owner occupied 399,457 1,133 — 400,590 Commercial and industrial 269,640 8,341 3,140 281,121 SBA loans 137,740 6,065 1,817 145,622 Consumer 159 — — 159 $ 1,223,121 $ 20,396 $ 4,957 $ 1,248,474 (1) At December 31, 2018 , substandard loans included $1.7 million of impaired loans. The following tables present past due and nonaccrual loans, net of discounts by loan class, excluding PCI loans, at September 30, 2019 and December 31, 2018 : September 30, 2019 Still Accruing 30-59 Days Past Due 60-89 Days Past Due 90 Days or more Past Due Nonaccrual (dollars in thousands) Real estate - residential $ — $ — $ — $ — Commercial and industrial — 4 — 730 SBA loans — — — 6,678 Total $ — $ 4 $ — $ 7,408 December 31, 2018 Still Accruing 30-59 Days Past Due 60-89 Days Past Due 90 Days or more Nonaccrual (dollars in thousands) Real estate - residential $ 480 $ — $ — $ — Commercial and industrial 3 1 — 89 SBA loans — — — 1,633 Total $ 483 $ 1 $ — $ 1,722 A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Recorded investment represents unpaid principal balance, net of charge-offs, discounts and interest applied to principal on nonaccrual loans, if any. The following tables present impaired loans, excluding PCI loans, by loan class at September 30, 2019 and December 31, 2018 : September 30, 2019 Impaired Loans Unpaid Principal Balance Recorded Investment(1) Without Specific Reserve With Specific Reserve Related Allowance (dollars in thousands) Commercial and industrial $ 828 $ 730 $ 730 $ — $ — SBA loans 7,842 7,002 5,103 1,899 624 Total $ 8,670 $ 7,732 $ 5,833 $ 1,899 $ 624 (1) Includes troubled-debt restructurings (“TDRs”) on accrual of $324 thousand . December 31, 2018 Impaired Loans Unpaid Principal Balance Recorded Investment(1) Without Specific Reserve With Specific Reserve Related Allowance (dollars in thousands) Commercial and industrial $ 178 $ 89 $ 89 $ — $ — SBA loans 2,964 1,960 1,960 — — Total $ 3,142 $ 2,049 $ 2,049 $ — $ — (1) Includes TDRs on accrual of $327 thousand . The following tables present the average recorded investment in impaired loans, excluding PCI loans, and related interest income recognized by loan class for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial $ 732 $ — $ 98 $ — SBA loans 4,179 54 1,805 9 Total $ 4,911 $ 54 $ 1,903 $ 9 Nine Months Ended September 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial $ 304 $ — $ 239 $ — SBA loans 2,563 71 1,459 19 Total $ 2,867 $ 71 $ 1,698 $ 19 At September 30, 2019 and December 31, 2018 , the total recorded investment for loans identified as a TDR was approximately $490 thousand and $922 thousand . There were no specific reserves allocated for these loans and we had not committed to lend any additional amounts to customers with outstanding loans that are classified as TDRs at September 30, 2019 . Loan modifications resulting in TDR status generally included one or a combination of the following: extensions of the maturity date, principal payment deferments or signed forbearance agreements with a payment plan. During the three and nine months ended September 30, 2019 and 2018 , there were no new loan modifications resulting in TDRs. A loan is considered to be in payment default once it is 90 days contractually past due under the modification. During the three and nine months ended September 30, 2019 and 2018 , there was one loan in each period totaling $92 thousand and $95 thousand classified as a TDR for which there was a payment default within twelve months following the modification. PCI Loans The following table summarizes the changes in the carrying amount and accretable yield of PCI loans for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended Carrying Amount Accretable Carrying Amount Accretable (dollars in thousands) Balance, beginning of period $ 2,281 $ 1,928 $ 2,644 $ 2,073 Accretion 1,635 (1,635 ) 1,950 (1,950 ) Payments received (2,780 ) — (3,447 ) — Increase in expected cash flows, net 44 814 33 984 Balance, end of period $ 1,180 $ 1,107 $ 1,180 $ 1,107 Loans Held for Sale At September 30, 2019 and December 31, 2018 , loans held for sale consisted of SBA 7(a) loans and totaled $11.9 million and $28.0 million. We account for loans held for sale at the lower of carrying value or market. The fair value of loans held for sale totaled $12.6 million and $29.2 million at September 30, 2019 and December 31, 2018 . |
Transfers and Servicing of Fina
Transfers and Servicing of Financial Assets | 9 Months Ended |
Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets | TRANSFERS AND SERVICING OF FINANCIAL ASSETS We sell loans in the secondary market and, for certain loans, retain the servicing responsibility. The loans serviced for others are accounted for as sales and, therefore, are not included in the accompanying condensed consolidated balance sheets. Loans serviced for others totaled $295.7 million and $288.2 million at September 30, 2019 and December 31, 2018 . This includes SBA loans serviced for others of $213.5 million at September 30, 2019 and $198.4 million at December 31, 2018 for which there is a related servicing asset of $3.4 million and $3.2 million . In addition, the loan servicing portfolio includes construction and land development loans, commercial real estate loans and commercial & industrial loans participated with various other institutions of $82.2 million and $89.8 million at September 30, 2019 and December 31, 2018 for which there is no related servicing asset. Consideration for each SBA loan sale includes the cash received and a related servicing asset. We receive servicing fees ranging from 0.25% to 1.00% for the services provided over the life of the loan. The servicing asset is based on the estimated fair value of these future cash flows to be collected. The risk inherent in the SBA servicing asset primarily relates to accelerated prepayment of loans in excess of what was originally modeled driven by changes in interest rates and a reduction in the estimated future cash flows. The servicing asset activity includes additions from loan sales with servicing retained and reductions from amortization as the serviced loans are repaid and servicing fees are earned. The SBA servicing asset activity is summarized for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (dollars in thousands) Balance, beginning of period $ 3,482 $ 2,448 $ 3,186 $ 2,618 Additions (1) 170 1,111 883 1,297 Amortization (282 ) (397 ) (699 ) (753 ) Balance, end of period $ 3,370 $ 3,162 $ 3,370 $ 3,162 (1) For the three and nine months ended September 30, 2018 , additions included the servicing asset fair value of $1.1 million from the PCB acquisition on July 31, 2018. The fair value of the servicing asset for SBA loans is measured at least quarterly and was $3.3 million and $3.3 million as of September 30, 2019 and December 31, 2018 . The significant assumptions used in the valuation of the SBA servicing asset at September 30, 2019 included discount rates, ranging from 6.8% to 35.3% , and a weighted average prepayment speed assumption of 17.9% . The following table summarizes the estimated change in the value of servicing assets as of September 30, 2019 given hypothetical shifts in prepayments speeds and yield assumptions: Change in Assumption Change in Estimated Fair Value (dollars in thousands) Prepayment speeds +10% $ (179 ) Prepayment speeds +20% (341 ) Discount rate +1% (88 ) Discount rate +2% (172 ) During the three months ended September 30, 2019 and 2018 , SBA loans sold totaled $9.7 million and $2.4 million resulting in total gains on sale of SBA loans of $528 thousand and $171 thousand . During the nine months ended September 30, 2019 and 2018 , SBA loans sold totaled $44.7 million and $11.2 million resulting in total gains of $2.7 million and $866 thousand . Net servicing fees, a component of noninterest income, represent contractually specified servicing fees reported net of the servicing asset amortization. Net servicing fees totaled $242 thousand and $39 thousand for the three months ended September 30, 2019 and 2018 including contractually specified servicing fees of $524 thousand and $435 thousand , offset by the amortization indicated in the table above. Net servicing fees totaled $763 thousand and $318 thousand for the nine months ended September 30, 2019 and 2018 , including contractually specified servicing fees of $1.5 million and $1.1 million , offset by the amortization indicated in the table above. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES We adopted ASU 2016-02, Leases (Topic 842), and related amendments on January 1, 2019, using the modified retrospective transition method whereby comparative periods were not restated. No cumulative effect adjustment to the opening balance of retained earnings was required. We elected the package of practical expedients permitted under the new standard as described in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - Accounting Standards Adopted in 2019. All of our leases are operating leases for corporate offices, branch locations and loan production offices. The amount of the lease liability and ROU asset is impacted by the lease term and the discount rate applied to determine the present value of future lease payments. The remaining terms of our operating leases range from 9 months to 5.3 years . Most of our leases include one or more options to renew, with renewal terms that can extend the lease term by varying amounts. The exercise of renewal options is at our sole discretion. We do not include renewal options in the measurement of ROU assets and lease liabilities unless they are considered reasonably certain of exercise. Upon adoption of this standard, we recognized ROU assets of $6.0 million and lease liabilities of $6.1 million . Subsequent to adoption, we recognized a $220 thousand impairment of the ROU assets related to the consolidation of two branches. The impairment of the ROU assets was based on a discounted cash flow of estimated sublease income over the remaining lease term. The balance of ROU assets, net of impairment, and lease liabilities are included in other assets and other liabilities on the condensed consolidated balance sheets. In addition to the ROU impairment related to the branch consolidations, we recognized an $180 thousand impairment of other long lived assets; both impairment charges are included in occupancy and equipment expense on the condensed consolidated statements of income. The balance sheet and supplemental information at September 30, 2019 are shown below. Balance Sheet and Supplemental Information (dollars in thousands) Operating lease ROU assets classified as other assets $5,456 Operating lease liability classified as other liabilities $5,714 Weighted average remaining lease term, in years 3.1 Weighted average discount rate 2.52 % We elected not to separate lease and non-lease components and instead to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance and utilities. The following table represents lease costs and other lease information for the periods indicated: Three Months Ended September 30, 2019 Nine Months Ended (dollars in thousands) Lease Costs Operating lease cost $ 543 $ 1,629 Variable lease cost 47 103 Short-term lease cost 3 17 Total lease costs $ 593 $ 1,749 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 553 $ 1,673 Maturities of lease liabilities for periods indicated: Twelve Months Ended September 30, (dollars in thousands) 2020 $ 2,113 2021 1,715 2022 1,518 2023 422 2024 139 Thereafter 35 Total future minimum lease payments 5,942 Less: Imputed interest (228 ) Present value of net future minimum lease payments $ 5,714 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS Our ten largest depositor relationships accounted for approximately 28% of total deposits at September 30, 2019 and 25% at December 31, 2018 . Time deposits that exceeded the FDIC insurance limit of $250,000 amounted to $76.9 million and $109.4 million as of September 30, 2019 and December 31, 2018 . Such time deposits included collateralized time deposits from the State of California of $25 million and $35 million at September 30, 2019 and December 31, 2018. Total collateralized deposits, including the deposits of State of California and other public agencies, are $64.8 million at September 30, 2019 and are collateralized by letters of credit issued by the FHLB under the Bank's secured line of credit with the FHLB. See Note 8 – Borrowing Arrangements for additional information regarding the FHLB secured line of credit. |
Borrowing Arrangements
Borrowing Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | BORROWING ARRANGEMENTS Federal Home Loan Bank Secured Line of Credit At September 30, 2019 , the Bank had a secured line of credit of $432.6 million from the FHLB, of which $330.1 million was available. This secured borrowing arrangement is subject to the Bank providing adequate collateral and continued compliance with the Advances and Security Agreement and other eligibility requirements established by the FHLB. At September 30, 2019 , the Bank had pledged as collateral certain qualifying loans with an unpaid principal balance of $879.1 million under this borrowing agreement. The Bank had a long term fixed-rate advance of $30.0 million that matures in June 2021 with a weighted average interest rate of 1.93% at September 30, 2019 . There were no long term fixed-rated advances at December 31, 2018 . There were no overnight borrowings outstanding under this arrangement at September 30, 2019 and $90.0 million with a weighted average interest rate of 2.56% at December 31, 2018 . The average balance of total FHLB borrowings was $48.3 million and $4.6 million with an average interest rate of 2.08% and 2.17% for the three months ended September 30, 2019 and 2018 . The average balance of FHLB borrowings was $53.1 million and $29.0 million with an average interest rate of 2.39% and 1.73% for the nine months ended September 30, 2019 and 2018 . In addition, at September 30, 2019 , the Bank used $72.5 million of its secured FHLB borrowing capacity by having the FHLB issue letters of credit to meet collateral requirements for deposits from the State of California and other public agencies. Federal Reserve Bank Secured Line of Credit At September 30, 2019 , the Bank had a secured line of credit of $168.1 million from the Federal Reserve Bank. During the third quarter of 2019, the Bank expanded the existing secured borrowing capacity with the FRB through the Borrower-in-Custody ("BIC") program. At September 30, 2019 , the Bank had pledged qualifying loans with an unpaid principal balance of $226.9 million and securities held-to-maturity with a carrying value of $5.1 million as collateral for this line. Borrowings under this BIC program are overnight advances with interest chargeable at FRB discount window ("Primary Credit") borrowing rate. There were no borrowings under this arrangement at or during the three and nine months ended September 30, 2019 and 2018 . Federal Funds Unsecured Lines of Credit The Bank has established unsecured overnight borrowing arrangements for an aggregate amount of $77.0 million , subject to availability, with five of its correspondent banks. In general, interest rates on these lines approximate the federal funds target rate. There were no overnight borrowings under these credit facilities at September 30, 2019 and $15.0 million at December 31, 2018 . There were no borrowings under this line for the three months ended September 30, 2019 . The average borrowings were $924 thousand with an average interest rate of 2.15% for the three months ended September 30, 2018 . The average borrowings were $843 thousand and $531 thousand with an average interest rate of 2.70% and 2.52% for the nine months ended September 30, 2019 and 2018 . Senior Secured Notes At September 30, 2019 , the outstanding balance under the holding company's secured line of credit totaled $13.1 million with an interest rate of 5.25% . At December 31, 2018 , the outstanding balance totaled $8.5 million with an interest rate of 5.75% . The average outstanding borrowings under this facility totaled $12.3 million and $5.0 million with an average interest rate of 5.69% and 5.38% for the three months ended September 30, 2019 and 2018 . The average outstanding borrowings under this facility totaled $12.2 million and $3.1 million with an average interest rate of 5.82% and 5.20% for the nine months ended September 30, 2019 and 2018 . At September 30, 2019 , we were in compliance with all loan covenants on the facility and the remaining available credit was $11.9 million . One of our executives is also a member of the lending bank's board of directors. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We account for income taxes by recognizing deferred tax assets and liabilities based upon temporary differences between the amounts for financial reporting purposes and tax basis of its assets and liabilities. Deferred tax assets decreased by approximately $2.3 million during the nine months ended September 30, 2019 as a result of changes to temporary differences related to non-qualified stock options exercises and change in discount accretion on loans acquired in the PCB acquisition. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary. Based on this analysis, management has determined that a valuation allowance for deferred tax assets was not required at September 30, 2019 . For the three months ended September 30, 2019 and 2018 , income tax expense was $3.3 million and $932 thousand , resulting in an effective income tax rate of 28.9% and 26.4% . For the nine months ended September 30, 2019 and 2018 , income tax expense was $9.7 million and $3.3 million , resulting in an effective income tax rate of 30.8% and 28.3% . Our effective tax rate is lower than the statutory rate of 29.6% during the three months ended September 30, 2019 and higher than the statutory rate during the nine months ended September 30, 2019 due to the tax effect of stock-based compensation. We are subject to federal income and California franchise tax. At September 30, 2019, the federal statute of limitations for the assessment of income tax is closed for all tax years up to and including 2015. The California statute of limitations for the assessment of franchise tax is closed for all years up to and including 2013. We are currently not under examination in any taxing jurisdiction. The total amount of unrecognized tax benefits was $116 thousand and $480 thousand at September 30, 2019 and December 31, 2018, primarily comprised of unrecognized tax benefits from tax positions taken in prior years. The total amount of tax benefits that, if recognized, would favorably impact the effective tax rate was $0 at September 30, 2019 and December 31, 2018. We expect the total amount of unrecognized tax benefits to decrease by $3 thousand within the next twelve months due to the expiration of the statute of limitations for the assessment of taxes. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. We had accrued $18 thousand and $59 thousand of interest at September 30, 2019 and December 31, 2018, respectively. No amounts for penalties were accrued. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | COMMITMENTS In the ordinary course of business, we enter into financial commitments to meet the financing needs of our customers. These financial commitments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in our condensed consolidated financial statements. Our exposure to loan loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments as we do for loans reflected in our condensed consolidated financial statements. As of September 30, 2019 and December 31, 2018 , we had the following outstanding financial commitments whose contractual amounts represent credit risk: September 30, December 31, (dollars in thousands) Commitments to extend credit $ 386,974 $ 375,755 Standby letters of credit 8,353 4,019 Commitments to contribute capital to low income housing project partnerships and other CRA investments 2,032 385 Total $ 397,359 $ 380,159 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. We evaluate each client’s credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by us is based on management’s credit evaluation of the customer. The majority of our commitments to extend credit and standby letters of credit are secured by real estate. The reserve for unfunded commitments was $1.4 million at September 30, 2019 and December 31, 2018 . The reserve for unfunded commitments is included in "other liabilities" in our condensed consolidated balance sheets. We committed to invest in a partnership that sponsors affordable housing projects utilizing the Low Income Housing Tax Credit ("LIHTC") pursuant to Section 42 of the Internal Revenue Code. The purpose of this investment is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing projects, and to assist in achieving goals associated with the Community Reinvestment Act ("CRA"). Capital contributions are called for up to an amount specified in the partnership agreement. In addition, we invest in other CRA investments such as the Small Business Investment Company ("SBIC") program. At September 30, 2019 , the Company had unfunded commitments to contribute capital to this LIHTC investments and other CRA investments totaling $2.0 million . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS In the ordinary course of business, we may grant loans to certain executive officers and directors and the companies with which they are associated. There are no related party loans for the three and nine months ended September 30, 2019 and 2018 . Deposits from certain officers and directors and the companies with which they are associated totaled $32.7 million and $33.2 million at September 30, 2019 and December 31, 2018 . We have a $25.0 million senior secured facility (refer to Note 8 – Borrowing Arrangements ) with another bank in which one of our executives is also a member of the lending bank’s board of directors. The outstanding balance of this facility was $13.1 million at September 30, 2019 . |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS Our 2013 Omnibus Stock Incentive Plan (“2013 Plan”) was approved by shareholders in May 2013. Under the terms of the 2013 Plan, officers and key employees may be granted both nonqualified and incentive stock options and directors and other consultants, who are not also an officer or employee, may only be granted nonqualified stock options. The 2013 Plan also permits the grant of stock appreciation rights (“SARs”), restricted shares, deferred shares, performance shares and performance unit awards. The 2013 Plan provides that the total shares of common stock that may be awarded under the plan shall not exceed 1,390,620 shares, of which a maximum of 300,000 shares may be granted as incentive stock options. Stock options, SARs, performance share and unit awards are granted at a price not less than 100% of the fair market value of the stock on the date of grant. Options generally vest over a period of three to five years. The 2013 Plan provides for accelerated vesting if there is a change of control, as defined in the 2013 Plan. Stock options expire no later than ten years from the grant. The 2013 Plan expires in 2023. In connection with the PCB acquisition, we issued replacement stock options exercisable for 420,393 shares of our common stock in cancellation of PCB stock options with an aggregated fair value of $7.4 million to PCB directors, officers and employees, which we refer to as rollover stock options. The remaining term on the rollover stock options ranges from 1 month to 9 years. We recognized stock-based compensation expense of $527 thousand and $409 thousand for the three months ended September 30, 2019 and 2018 and $1.5 million and $1.3 million for the nine months ended September 30, 2019 and 2018 . A summary of activity in our outstanding stock options during the three and nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, 2019 2018 Shares Weighted Average Exercise Price Shares Weighted Outstanding, beginning of period 141,089 $ 10.18 65,978 $ 10.17 Rollover options — — 420,393 10.60 Exercised (2,512 ) 11.60 (74,343 ) 10.13 Granted — — — — Forfeited — — — — Outstanding, end of period 138,577 $ 10.16 412,028 $ 10.62 Options exercisable 138,577 $ 10.16 403,374 $ 10.60 Nine Months Ended September 30, 2019 2018 Shares Weighted Average Exercise Price Shares Weighted Outstanding, beginning of period 383,212 $ 10.44 65,978 $ 10.17 Rollover options — — 420,393 10.60 Exercised (244,249 ) 10.60 (74,343 ) 10.13 Granted — — — — Forfeited (386 ) 12.94 — — Outstanding, end of period 138,577 $ 10.16 412,028 $ 10.62 Options exercisable 138,577 $ 10.16 403,374 $ 10.60 As of September 30, 2019 , there was no unrecognized compensation cost related to the outstanding stock options. The weighted average of the remaining contractual terms of options outstanding and options exercisable were each 4.2 years at September 30, 2019 compared to 2.5 years and 2.4 years at September 30, 2018 . The aggregate intrinsic value of the options outstanding and options exercisable were each $1.5 million at September 30, 2019 compared to an aggregate intrinsic value of options outstanding of $6.8 million and options exercisable of $6.7 million at September 30, 2018 . The intrinsic value of options exercised during the three months ended September 30, 2019 and 2018 was approximately $25 thousand and $1.2 million . The intrinsic value of options exercised during the nine months ended September 30, 2019 and 2018 was approximately $2.7 million and $1.2 million . A summary of activity for outstanding restricted shares for the three and nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, 2019 2018 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, beginning of period 128,053 $ 22.91 77,627 $ 23.03 Granted 972 22.56 7,652 29.85 Vested (4,537 ) 26.41 (4,945 ) 22.24 Forfeited (843 ) 21.43 (2,016 ) 23.35 Nonvested, end of period 123,645 $ 22.79 78,318 $ 23.73 Nine Months Ended September 30, 2019 2018 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, beginning of period 84,120 $ 23.90 142,553 $ 20.28 Granted 111,205 22.19 18,592 27.71 Vested (64,012 ) 23.32 (75,958 ) 22.29 Forfeited (7,668 ) 21.83 (6,869 ) 20.45 Nonvested, end of period 123,645 $ 22.79 78,318 $ 23.73 As of September 30, 2019 , there was approximately $1.5 million of total unrecognized compensation cost related to the restricted shares that will be recognized over the weighted-average period of 2.5 years . The value of restricted shares that vested was approximately $120 thousand and $136 thousand during the three months ended September 30, 2019 and 2018 . The value of restricted shares that vested was approximately $1.5 million and $1.9 million during the nine months ended September 30, 2019 and 2018 . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings per share (“EPS”) are computed on a basic and diluted basis. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding. Basic shares outstanding exclude unvested shares of restricted stock and stock options. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shares in our earnings. Our unvested grants of restricted stock contain non-forfeitable rights to dividends, which are required to be treated as participating securities and included in the computation of earnings per share. The following is a reconciliation of net income and shares outstanding used in the computation of basic and diluted EPS: Three Months Ended Nine Months Ended September 30, September 30, June 30, September 30, 2019 2018 Numerator for basic earnings per share: (dollars in thousands, except share and per share data) Net income $ 8,071 $ 6,811 $ 2,604 $ 21,890 $ 8,417 Less: dividends and net income allocated to participating securities (86 ) (76 ) (17 ) (222 ) (73 ) Net income available to common shareholders $ 7,985 $ 6,735 $ 2,587 $ 21,668 $ 8,344 Denominator for basic earnings per share: Basic weighted average common shares outstanding during the period 11,584,955 11,581,889 10,144,954 11,605,687 8,170,234 Denominator for diluted earnings per share: Basic weighted average common shares outstanding during the period 11,584,955 11,581,889 10,144,954 11,605,687 8,170,234 Net effect of dilutive stock options 74,191 93,168 212,115 108,333 98,529 Diluted weighted average common shares 11,659,146 11,675,057 10,357,069 11,714,020 8,268,763 Net income per common share: Basic $ 0.69 $ 0.58 $ 0.26 $ 1.87 $ 1.02 Diluted $ 0.68 $ 0.58 $ 0.25 $ 1.85 $ 1.01 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged (using an exit price notion) in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The methods and assumptions used to estimate the fair value of certain financial instruments are described below: Loans. The fair value of loans, which is based on an exit price notion, is generally determined using an income-based approach based on discounted cash flow analysis. This approach utilizes the contractual maturity of the loans and market indications of interest rates, prepayment speeds, defaults and credit risk in determining fair value. For impaired loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral. This approach utilizes the estimated net sales proceeds to determine the fair value of the loans when deemed appropriate. The implied sales proceeds value provides a better indication of value than using an income-based approach as these loans are not performing or exhibit strong signs indicative of non-performance. Securities. The fair values of securities available-for-sale are determined by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Equity Securities. The fair value of equity securities is based on quoted prices in active markets for identical assets to determine the fair value. If quoted prices are not available to determine fair value, we use other inputs that are directly observable. Recurring fair value measurements The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018 : Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total September 30, 2019: (dollars in thousands) Securities available-for-sale: Mortgage-backed securities $ — $ 7,978 $ — $ 7,978 Collateralized mortgage obligations — 10,306 — 10,306 SBA Pools — 9,060 — 9,060 Securities available-for-sale $ — $ 27,344 $ — $ 27,344 Equity securities: Mutual fund investment $ 2,681 $ — $ — $ 2,681 December 31, 2018: Securities available-for-sale: Mortgage-backed securities $ — $ 8,844 $ — $ 8,844 Collateralized mortgage obligations — 11,461 — 11,461 SBA Pools — 9,238 — 9,238 Securities available-for-sale $ — $ 29,543 $ — $ 29,543 Equity securities: Mutual fund investment $ 2,538 $ — $ — $ 2,538 Nonrecurring fair value measurements These fair value measurements typically result from the application of specific accounting pronouncements under GAAP. The fair value measurements are considered nonrecurring fair value measurements under FASB ASC 820-10. At September 30, 2019 and December 31, 2018 the fair value measurements (Level 3) related to collateral dependent impaired loans totaled $1.9 million and $690 thousand . Total nonrecurring losses (which include charge-offs, net of recoveries and changes in specific reserves) recognized for impaired loans during the three months ended September 30, 2019 and 2018 totaled $624 thousand and $22 thousand in losses. Total nonrecurring losses (which include charge-offs, net of recoveries and changes in specific reserves) recognized for impaired loans during the nine months ended September 30, 2019 and 2018 totaled $624 thousand and $590 thousand in losses. We utilized selling costs ranging from 8% to 10% of appraised values for nonrecurring fair value measurements related to collateral-dependent impaired loans during the three and nine months ended September 30, 2019 and 2018 . There were no transfers of financial assets between Levels 1, 2 and 3 for the three and nine months ended September 30, 2019 and 2018 . Fair value of financial instruments The fair value hierarchy level and estimated fair value of significant financial instruments at September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial Assets: (dollars in thousands) Cash and cash equivalents Level 1 $ 180,615 $ 180,615 $ 197,376 $ 197,376 Securities available-for-sale Level 2 27,344 27,344 29,543 29,543 Securities held-to-maturity Level 2 5,066 5,110 5,322 5,095 Equity securities Level 1 2,681 2,681 2,538 2,538 Loans held for sale Level 2 11,906 12,594 28,022 29,238 Loan held for investment, net Level 3 1,304,280 1,341,668 1,239,925 1,265,013 Restricted stock investments, at cost Level 2 12,970 12,970 12,855 12,855 Servicing asset Level 3 3,370 3,345 3,186 3,295 Accrued interest receivable Level 2 5,477 5,477 5,069 5,069 Financial Liabilities: Deposits Level 2 $ 1,339,538 $ 1,339,611 $ 1,252,339 $ 1,250,555 Borrowings Level 2 30,000 30,000 104,998 104,998 Senior secured notes Level 2 13,100 13,100 8,450 8,450 Accrued interest payable Level 2 339 339 366 366 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The portion of our noninterest income which is in scope of Topic 606, Revenue from Contracts with Customers , includes fees from deposit customers for transaction-based fees, account maintenance charges, and overdraft services. Transaction-based fees include items such as ATM and ACH fees, overdraft and stop payment charges, and are recognized at the time such transactions are executed and our service has been fulfilled. Account maintenance charges, which are primarily monthly fees, are earned over the course of the month, which represents the period through which we satisfy our performance obligation. Overdraft fees are recognized at the time the overdraft occurs. Service charges are typically withdrawn from the customer’s account balance. The following is a summary of our noninterest income in-scope and not in-scope of Topic 606: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (dollars in thousands) Noninterest income, in-scope: Service charges and fees on deposit accounts $ 475 $ 380 $ 1,579 $ 803 Other income 46 58 133 75 Total noninterest income, in-scope 521 438 1,712 878 Noninterest income, not in-scope: Gain on sale of loans 528 171 2,727 866 Net servicing fees 242 39 763 318 Change in fair value of equity securities 14 (23 ) 88 (140 ) Other income 368 87 827 146 Total noninterest income, not in-scope 1,152 274 4,405 1,190 Total noninterest income $ 1,673 $ 712 $ 6,117 $ 2,068 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Dividends During the three months ended September 30, 2019 and 2018 , total quarterly cash dividends declared were $0.20 per share and total cash dividends paid were $2.3 million and $2.3 million . During the nine months ended September 30, 2019 and 2018 , total cash dividends declared were $0.60 per share and total cash dividends paid were $7.0 million and $5.2 million . Stock Repurchase Plan On December 3, 2018, we announced a stock repurchase plan, providing for the repurchase of up to 1.2 million shares, or approximately 10%, of our then outstanding shares (the "repurchase plan"). The repurchase plan permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rules 10b5-1 and 10b-18. The repurchase plan may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of tentative investment opportunities, liquidity, and other factors management deems appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase plan does not obligate us to purchase any particular number of shares. During the three months ended September 30, 2019 , we repurchased 87,500 shares at an average price of $21.84 per share and a total cost of $1.9 million under the repurchase plan. During the nine months ended September 30, 2019 , we repurchased 416,270 shares at an average price of $21.60 per share and total cost of $9.0 million . Since the plan was announced, we have repurchased a total of 452,553 shares at an average price of $21.62 per share. The remaining number of shares authorized to be repurchased under this plan is 747,447 shares at September 30, 2019 . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Company plans to relocate the downtown Los Angeles branch to a smaller space within the same building and has signed a sublease of the current space which shall begin on or after January 1, 2020. The sublease is contingent upon the Company executing a lease for smaller space in the same building and receiving all applicable federal and state regulatory approvals. As a result of this pending move and sublease agreement, the Company expects to recognize an after-tax impairment charge of between $475 thousand and $675 thousand , or $0.04 to $0.06 per diluted share, in the fourth quarter of 2019. Starting in the first quarter of 2020, annualized after-tax cost savings related to the sublease and newly leased space are estimated to be between $250 thousand and $325 thousand , or $0.02 to $0.03 per diluted share, through 2022. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Bancorp and the Bank and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. These interim period condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the years ended December 31, 2018 and 2017 , which are included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC"). All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change are the determination of the allowance for loan losses, the valuation of acquired loans, the valuation of goodwill and separately identifiable intangible assets associated with mergers and acquisitions, and the valuation of deferred tax assets. |
Leases | Leases We determine if an arrangement contains a lease at contract inception and recognize a right-of-use ("ROU") asset and operating lease liability based on the present value of lease payments over the lease term. While our operating leases may include options to extend the term, these options are not included when calculating the ROU asset and lease liability unless we are reasonably certain we will exercise such options. Most of our leases do not provide an implicit rate and, therefore, we determine the present value of lease payments by using our incremental borrowing rate, currently our FHLB secured borrowing rate for the remaining lease term, and other information available at lease commencement. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets. Lease expense is recognized on a straight line basis over the lease term. We have lease agreements with lease and non-lease components for which we have elected to account for as a single lease component. Refer to – Accounting Standards Adopted in 2019 below and Note 6. Leases for further discussion on our leasing arrangements and related accounting. |
Accounting Standards Adopted in 2019 and Recent Accounting Guidance Not Yet Effective | Accounting Standards Adopted in 2019 We adopted ASU 2016-02, Leases (Topic 842) and ASU 2018-11, Leases (Topic 842): Targeted Improvements, referred to herein as Topic 842, effective January 1, 2019. The new guidance establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Entities are required to recognize ROU assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. Under the amendments in ASU 2018-11, entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard. Upon adoption, we elected to use the modified retrospective transition approach and recorded ROU assets of $6.0 million and lease liabilities of $6.1 million at the date of adoption with no adjustment to opening equity. We elected to apply the package of practical expedients which permits entities to not reassess: (i) whether any expired or existing contracts contain a lease; (ii) lease classification for any expired or existing leases; and (iii) whether initial direct costs for any existing leases qualify for capitalization under the amended guidance. We also elected not to include short-term leases (leases with initial terms of 12 months or less) on the consolidated balance sheets. Recent Accounting Guidance Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) (“ASU 2016-13”), also known as "CECL". This guidance will replace the incurred loss impairment methodology used to estimate the allowance for credit losses in current GAAP with a methodology that reflects future expected credit losses and requires consideration of a broader range of reasonable and supportable forecasts in the credit loss estimates. On October 16, 2019, the FASB decided to delay the effective date of ASU 2016-13 for smaller reporting companies, private companies and other non-SEC filers. We are considered a smaller reporting company. Therefore, this ASU will be effective for the Company on January 1, 2023 with early adoption permitted. Management continues to have a cross functional committee in place to oversee the project, has selected software to implement the new guidance, and has engaged an existing third-party service provider to assist in implementation. We have completed data gap analyses, developed initial modeling assumptions, and run a high level sensitivity analysis. We expect to run parallel calculations, testing, and further sensitivity analysis beginning in the first quarter of 2020. We have not yet determined the potential impact of the adoption of ASU 2016-13 to our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the current goodwill impairment test. Step 2 currently measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. On October 16, 2019, the FASB decided to delay the effective date of ASU 2017-04 for smaller reporting companies, private companies and other non-SEC filers. We are considered a smaller reporting company. Therefore, this ASU will be effective for the Company on January 1, 2023. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of ASU 2017-04 to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). The primary objective of ASU 2018-13 is to improve the effectiveness of disclosures in the notes to financial statements. ASU 2018-13 will be effective on January 1, 2020, although early adoption is permitted. The adoption of ASU 2018-13 is not expected to significantly impact our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ("ASU 2018-15"). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 will be effective on January 1, 2020, including interim periods within the years of adoption although early adoption is permitted. ASU 2018-15 is not expected to significantly impact our condensed consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in CDI | The following table presents the changes in CDI for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended 2019 2018 2019 2018 (dollars in thousands) Core deposit intangible: Gross balance, beginning of period $ 6,908 $ — $ 6,908 $ — Additions — 6,908 — 6,908 Gross balance, end of period $ 6,908 $ 6,908 $ 6,908 $ 6,908 Accumulated amortization: Balance, beginning of period (725 ) — (332 ) — Amortization (197 ) (133 ) (590 ) (133 ) Balance, end of period $ (922 ) $ (133 ) $ (922 ) $ (133 ) Net core deposit intangible, end of period $ 5,986 $ 6,775 $ 5,986 $ 6,775 |
Schedule of estimated amortization expense for CDI | The following table shows the estimated amortization expense for CDI during the next five fiscal years: Year Ended December 31, (dollars in thousands) Remainder 2019 $ 196 2020 771 2021 753 2022 732 2023 707 Thereafter 2,827 $ 5,986 |
Investment Securities - (Tables
Investment Securities - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-sale Securities Amortized Cost and Fair Value | The carrying amount of securities held-to-maturity and securities available-for-sale and their approximate fair values at September 30, 2019 and December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2019 (dollars in thousands) Securities available-for-sale: Mortgage-backed securities $ 8,057 $ 25 $ (104 ) $ 7,978 Collateralized mortgage obligations 10,293 46 (33 ) 10,306 SBA pools 8,937 133 (10 ) 9,060 $ 27,287 $ 204 $ (147 ) $ 27,344 Securities held-to-maturity: U.S. Government and agency securities $ 3,342 $ — $ (1 ) $ 3,341 Mortgage-backed securities 1,724 60 (15 ) 1,769 $ 5,066 $ 60 $ (16 ) $ 5,110 December 31, 2018 Securities available-for-sale: Mortgage-backed securities $ 9,177 $ — $ (333 ) $ 8,844 Collateralized mortgage obligations 11,731 2 (272 ) 11,461 SBA pools 9,628 — (390 ) 9,238 $ 30,536 $ 2 $ (995 ) $ 29,543 Securities held-to-maturity: U.S. Government and agency securities $ 3,340 $ — $ (122 ) $ 3,218 Mortgage-backed securities 1,982 — (105 ) 1,877 $ 5,322 $ — $ (227 ) $ 5,095 |
Summary of Held-to-maturity Securities Amortized Cost and Fair Value | The carrying amount of securities held-to-maturity and securities available-for-sale and their approximate fair values at September 30, 2019 and December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2019 (dollars in thousands) Securities available-for-sale: Mortgage-backed securities $ 8,057 $ 25 $ (104 ) $ 7,978 Collateralized mortgage obligations 10,293 46 (33 ) 10,306 SBA pools 8,937 133 (10 ) 9,060 $ 27,287 $ 204 $ (147 ) $ 27,344 Securities held-to-maturity: U.S. Government and agency securities $ 3,342 $ — $ (1 ) $ 3,341 Mortgage-backed securities 1,724 60 (15 ) 1,769 $ 5,066 $ 60 $ (16 ) $ 5,110 December 31, 2018 Securities available-for-sale: Mortgage-backed securities $ 9,177 $ — $ (333 ) $ 8,844 Collateralized mortgage obligations 11,731 2 (272 ) 11,461 SBA pools 9,628 — (390 ) 9,238 $ 30,536 $ 2 $ (995 ) $ 29,543 Securities held-to-maturity: U.S. Government and agency securities $ 3,340 $ — $ (122 ) $ 3,218 Mortgage-backed securities 1,982 — (105 ) 1,877 $ 5,322 $ — $ (227 ) $ 5,095 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of all investment securities held-to-maturity and available-for-sale at September 30, 2019 , by contractual maturities are shown below. Contractual maturities may differ from expected maturities because the obligors and/or issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Due in one year or less $ — $ — $ — $ — Due after one year through five years 3,342 3,341 — — Due after five years through ten years — — — — Due after ten years (1) 1,724 1,769 27,287 27,344 $ 5,066 $ 5,110 $ 27,287 $ 27,344 (1) Mortgage-backed securities, collateralized mortgage obligations and SBA pools do not have a single stated maturity date and, therefore, have been included in the "Due after ten years" category. |
Schedule of Unrealized Loss on Investments | As of September 30, 2019 and December 31, 2018 , unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value September 30, 2019 (dollars in thousands) Securities available-for-sale: Mortgage-backed securities $ — $ — $ (104 ) $ 6,525 $ (104 ) $ 6,525 Collateralized mortgage obligations — — (33 ) 2,347 (33 ) 2,347 SBA pools (10 ) 3,144 — — (10 ) 3,144 $ (10 ) $ 3,144 $ (137 ) $ 8,872 $ (147 ) $ 12,016 Securities held-to-maturity: U.S. Government and agency securities $ (1 ) $ 3,341 $ — $ — $ (1 ) $ 3,341 Mortgage-backed securities — — (15 ) 795 (15 ) 795 $ (1 ) $ 3,341 $ (15 ) $ 795 $ (16 ) $ 4,136 December 31, 2018 Securities available-for-sale: Mortgage-backed securities $ (20 ) $ 2,397 $ (313 ) $ 6,447 $ (333 ) $ 8,844 Collateralized mortgage obligations (3 ) 1,127 (269 ) 9,742 (272 ) 10,869 SBA pools — — (390 ) 9,238 (390 ) 9,238 $ (23 ) $ 3,524 $ (972 ) $ 25,427 $ (995 ) $ 28,951 Securities held-to-maturity: U.S. Government and agency securities $ — $ — $ (122 ) $ 3,218 $ (122 ) $ 3,218 Mortgage-backed securities — — (105 ) 1,877 (105 ) 1,877 $ — $ — $ (227 ) $ 5,095 $ (227 ) $ 5,095 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents loans held for investment, net by loan class at September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Loans PCI Loans Total Loans PCI Loans Total (dollars in thousands) Construction and land development $ 221,857 $ — $ 221,857 $ 184,177 $ — $ 184,177 Real estate: Residential 48,896 — 48,896 57,443 — 57,443 Commercial real estate - owner occupied 171,250 110 171,360 179,362 132 179,494 Commercial real estate - non-owner occupied 401,710 — 401,710 400,590 1,075 401,665 Commercial and industrial 310,699 506 311,205 281,121 597 281,718 SBA loans 161,044 564 161,608 145,622 840 146,462 Consumer 424 — 424 159 — 159 Loans held for investment, net of discounts 1,315,880 1,180 1,317,060 1,248,474 2,644 1,251,118 Net deferred origination fees (440 ) — (440 ) (137 ) — (137 ) Loans held for investment $ 1,315,440 $ 1,180 $ 1,316,620 $ 1,248,337 $ 2,644 $ 1,250,981 Allowance for loan losses (12,340 ) — (12,340 ) (11,056 ) — (11,056 ) Loans held for investment, net $ 1,303,100 $ 1,180 $ 1,304,280 $ 1,237,281 $ 2,644 $ 1,239,925 The following table presents the components of loans held for investment at September 30, 2019 and December 31, 2018 : September 30, December 31, (dollars in thousands) Gross loans (1) $ 1,328,031 $ 1,263,891 Unamortized net discounts (2) (10,971 ) (12,773 ) Net unamortized deferred origination fees (440 ) (137 ) Loans held for investment $ 1,316,620 $ 1,250,981 (1) Gross loans include the net carrying value of PCI loans of $1.2 million and $2.6 million at September 30, 2019 and December 31, 2018 . (2) Unamortized net discounts include discounts related to the retained portion of SBA loans and net discounts on Non-PCI acquired loans. At September 30, 2019 , net discounts related to loans acquired in the PCB acquisition totaled $7.6 million and are expected to be accreted into interest income over a weighted average life of 5.1 years . At December 31, 2018, net discounts related to loans acquired in the PCB acquisition totaled $9.5 million . |
Allowance for Credit Losses on Financing Receivables | The following table presents a summary of the changes in the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (dollars in thousands) Balance, beginning of period $ 12,053 $ 10,376 $ 11,056 $ 10,497 Provision for loan losses 700 600 1,600 1,120 Charge-offs (437 ) (358 ) (561 ) (1,133 ) Recoveries 24 38 245 172 Net charge-offs (413 ) (320 ) (316 ) (961 ) Balance, end of period $ 12,340 $ 10,656 $ 12,340 $ 10,656 The following tables present the activity in the allowance for loan losses, the composition of the period end allowance, and the loans evaluated for impariment by loan class for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, 2019 Real Estate Construction and Land Development Residential Commercial - Owner Occupied Commercial - Non-owner Occupied Commercial and Industrial SBA Loans Consumer Total (dollars in thousands) Balance, June 30, 2019 $ 1,892 $ 379 $ 905 $ 2,587 $ 4,502 $ 1,788 $ — $ 12,053 Provision for (reversal of) loan losses 247 (47 ) (107 ) (179 ) 384 399 3 700 Charge-offs — — — — (437 ) — — (437 ) Recoveries — — — — 24 — — 24 Net charge-offs — — — — (413 ) — — (413 ) Balance, September 30, 2019 $ 2,139 $ 332 $ 798 $ 2,408 $ 4,473 $ 2,187 $ 3 $ 12,340 Reserves: Specific $ — $ — $ — $ — $ — $ 624 $ — $ 624 General 2,139 332 798 2,408 4,473 1,563 3 11,716 $ 2,139 $ 332 $ 798 $ 2,408 $ 4,473 $ 2,187 $ 3 $ 12,340 Loans evaluated for impairment: Individually $ — $ — $ — $ — $ 730 $ 7,002 $ — $ 7,732 Collectively 221,857 48,896 171,250 401,710 309,969 154,042 424 1,308,148 PCI loans — — 110 — 506 564 — 1,180 $ 221,857 $ 48,896 $ 171,360 $ 401,710 $ 311,205 $ 161,608 $ 424 $ 1,317,060 Three Months Ended September 30, 2018 Real Estate Construction and Land Development Residential Commercial - Owner Occupied Commercial - Non-owner Occupied Commercial and Industrial SBA Loans Consumer Total (dollars in thousands) Balance, June 30, 2018 $ 1,603 $ 384 $ 637 $ 2,755 $ 3,288 $ 1,709 $ — $ 10,376 Provision for (reversal of) loan losses 295 28 141 70 (215 ) 281 — 600 Charge-offs — — — — (8 ) (350 ) — (358 ) Recoveries — — — — 38 — — 38 Net recoveries (charge-offs) — — — — 30 (350 ) — (320 ) Balance, September 30, 2018 $ 1,898 $ 412 $ 778 $ 2,825 $ 3,103 $ 1,640 $ — $ 10,656 Reserves: Specific $ — $ — $ — $ — $ — $ — $ — $ — General 1,898 412 778 2,825 3,103 1,640 — 10,656 $ 1,898 $ 412 $ 778 $ 2,825 $ 3,103 $ 1,640 $ — $ 10,656 Loans evaluated for impairment: Individually $ — $ — $ — $ — $ 95 $ 1,032 $ — $ 1,127 Collectively 172,938 60,570 180,985 391,536 269,921 145,440 — 1,221,390 PCI loans — — 104 1,383 645 887 — 3,019 $ 172,938 $ 60,570 $ 181,089 $ 392,919 $ 270,661 $ 147,359 $ — $ 1,225,536 Nine Months Ended September 30, 2019 Real Estate Construction and Land Development Residential Commercial - Owner Occupied Commercial - Non-owner Occupied Commercial and Industrial SBA Loans Consumer Total (dollars in thousands) Balance, December 31, 2018 $ 1,721 $ 422 $ 734 $ 2,686 $ 3,686 $ 1,807 $ — $ 11,056 Provision for (reversal of) loan losses 418 (90 ) 64 (278 ) 1,292 191 3 1,600 Charge-offs — — — — (561 ) — — (561 ) Recoveries — — — — 56 189 — 245 Net (charge-offs) recoveries — — — — (505 ) 189 — (316 ) Balance, September 30, 2019 $ 2,139 $ 332 $ 798 $ 2,408 $ 4,473 $ 2,187 $ 3 $ 12,340 Nine Months Ended September 30, 2018 Real Estate Construction and Land Development Residential Commercial - Owner Occupied Commercial - Non-owner Occupied Commercial and Industrial SBA Loans Consumer Total (dollars in thousands) Balance, December 31, 2017 $ 1,597 $ 375 $ 655 $ 3,136 $ 3,232 $ 1,494 $ 8 $ 10,497 Provision for (reversal of) loan losses 301 37 123 (311 ) 221 757 (8 ) 1,120 Charge-offs — — — — (522 ) (611 ) — (1,133 ) Recoveries — — — — 172 — — 172 Net charge-offs — — — — (350 ) (611 ) — (961 ) Balance, September 30, 2018 $ 1,898 $ 412 $ 778 $ 2,825 $ 3,103 $ 1,640 $ — $ 10,656 |
Financing Receivable Credit Quality Indicators | The following tables present loans held for investment, net of discounts by loan class and risk category, excluding PCI loans, as of September 30, 2019 and December 31, 2018 : September 30, 2019 Pass Special Mention Substandard (1) Total (dollars in thousands) Construction and land development $ 221,857 $ — $ — $ 221,857 Real estate: Residential 48,896 — — 48,896 Commercial real estate - owner occupied 166,085 — 5,165 171,250 Commercial real estate - non-owner occupied 400,862 — 848 401,710 Commercial and industrial 305,226 — 5,473 310,699 SBA loans 150,719 — 10,325 161,044 Consumer 424 — — 424 $ 1,294,069 $ — $ 21,811 $ 1,315,880 (1) At September 30, 2019 , substandard loans included $7.4 million of impaired loans. December 31, 2018 Pass Special Mention Substandard (1) Total (dollars in thousands) Construction and land development $ 184,177 $ — $ — $ 184,177 Real estate: Residential 57,443 — — 57,443 Commercial real estate - owner occupied 174,505 4,857 — 179,362 Commercial real estate - non-owner occupied 399,457 1,133 — 400,590 Commercial and industrial 269,640 8,341 3,140 281,121 SBA loans 137,740 6,065 1,817 145,622 Consumer 159 — — 159 $ 1,223,121 $ 20,396 $ 4,957 $ 1,248,474 (1) At December 31, 2018 , substandard loans included $1.7 million of impaired loans. |
Past Due Financing Receivables | The following tables present past due and nonaccrual loans, net of discounts by loan class, excluding PCI loans, at September 30, 2019 and December 31, 2018 : September 30, 2019 Still Accruing 30-59 Days Past Due 60-89 Days Past Due 90 Days or more Past Due Nonaccrual (dollars in thousands) Real estate - residential $ — $ — $ — $ — Commercial and industrial — 4 — 730 SBA loans — — — 6,678 Total $ — $ 4 $ — $ 7,408 December 31, 2018 Still Accruing 30-59 Days Past Due 60-89 Days Past Due 90 Days or more Nonaccrual (dollars in thousands) Real estate - residential $ 480 $ — $ — $ — Commercial and industrial 3 1 — 89 SBA loans — — — 1,633 Total $ 483 $ 1 $ — $ 1,722 |
Impaired Financing Receivables | Recorded investment represents unpaid principal balance, net of charge-offs, discounts and interest applied to principal on nonaccrual loans, if any. The following tables present impaired loans, excluding PCI loans, by loan class at September 30, 2019 and December 31, 2018 : September 30, 2019 Impaired Loans Unpaid Principal Balance Recorded Investment(1) Without Specific Reserve With Specific Reserve Related Allowance (dollars in thousands) Commercial and industrial $ 828 $ 730 $ 730 $ — $ — SBA loans 7,842 7,002 5,103 1,899 624 Total $ 8,670 $ 7,732 $ 5,833 $ 1,899 $ 624 (1) Includes troubled-debt restructurings (“TDRs”) on accrual of $324 thousand . December 31, 2018 Impaired Loans Unpaid Principal Balance Recorded Investment(1) Without Specific Reserve With Specific Reserve Related Allowance (dollars in thousands) Commercial and industrial $ 178 $ 89 $ 89 $ — $ — SBA loans 2,964 1,960 1,960 — — Total $ 3,142 $ 2,049 $ 2,049 $ — $ — (1) Includes TDRs on accrual of $327 thousand . The following tables present the average recorded investment in impaired loans, excluding PCI loans, and related interest income recognized by loan class for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial $ 732 $ — $ 98 $ — SBA loans 4,179 54 1,805 9 Total $ 4,911 $ 54 $ 1,903 $ 9 Nine Months Ended September 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial $ 304 $ — $ 239 $ — SBA loans 2,563 71 1,459 19 Total $ 2,867 $ 71 $ 1,698 $ 19 |
Schedule of Changes in Carrying Amount and Accretable Yield of PCI Loans | The following table summarizes the changes in the carrying amount and accretable yield of PCI loans for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended Carrying Amount Accretable Carrying Amount Accretable (dollars in thousands) Balance, beginning of period $ 2,281 $ 1,928 $ 2,644 $ 2,073 Accretion 1,635 (1,635 ) 1,950 (1,950 ) Payments received (2,780 ) — (3,447 ) — Increase in expected cash flows, net 44 814 33 984 Balance, end of period $ 1,180 $ 1,107 $ 1,180 $ 1,107 |
Transfers and Servicing of Fi_2
Transfers and Servicing of Financial Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Servicing Asset at Amortized Cost | The SBA servicing asset activity is summarized for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (dollars in thousands) Balance, beginning of period $ 3,482 $ 2,448 $ 3,186 $ 2,618 Additions (1) 170 1,111 883 1,297 Amortization (282 ) (397 ) (699 ) (753 ) Balance, end of period $ 3,370 $ 3,162 $ 3,370 $ 3,162 (1) For the three and nine months ended September 30, 2018 , additions included the servicing asset fair value of $1.1 million from the PCB acquisition on July 31, 2018. |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | The following table summarizes the estimated change in the value of servicing assets as of September 30, 2019 given hypothetical shifts in prepayments speeds and yield assumptions: Change in Assumption Change in Estimated Fair Value (dollars in thousands) Prepayment speeds +10% $ (179 ) Prepayment speeds +20% (341 ) Discount rate +1% (88 ) Discount rate +2% (172 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Supplemental Lease Information and Lease Cost | The balance sheet and supplemental information at September 30, 2019 are shown below. Balance Sheet and Supplemental Information (dollars in thousands) Operating lease ROU assets classified as other assets $5,456 Operating lease liability classified as other liabilities $5,714 Weighted average remaining lease term, in years 3.1 Weighted average discount rate 2.52 % We elected not to separate lease and non-lease components and instead to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance and utilities. The following table represents lease costs and other lease information for the periods indicated: Three Months Ended September 30, 2019 Nine Months Ended (dollars in thousands) Lease Costs Operating lease cost $ 543 $ 1,629 Variable lease cost 47 103 Short-term lease cost 3 17 Total lease costs $ 593 $ 1,749 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 553 $ 1,673 |
Schedule of Future Minimum Payments | Maturities of lease liabilities for periods indicated: Twelve Months Ended September 30, (dollars in thousands) 2020 $ 2,113 2021 1,715 2022 1,518 2023 422 2024 139 Thereafter 35 Total future minimum lease payments 5,942 Less: Imputed interest (228 ) Present value of net future minimum lease payments $ 5,714 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding Financial Commitments | As of September 30, 2019 and December 31, 2018 , we had the following outstanding financial commitments whose contractual amounts represent credit risk: September 30, December 31, (dollars in thousands) Commitments to extend credit $ 386,974 $ 375,755 Standby letters of credit 8,353 4,019 Commitments to contribute capital to low income housing project partnerships and other CRA investments 2,032 385 Total $ 397,359 $ 380,159 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding | A summary of activity in our outstanding stock options during the three and nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, 2019 2018 Shares Weighted Average Exercise Price Shares Weighted Outstanding, beginning of period 141,089 $ 10.18 65,978 $ 10.17 Rollover options — — 420,393 10.60 Exercised (2,512 ) 11.60 (74,343 ) 10.13 Granted — — — — Forfeited — — — — Outstanding, end of period 138,577 $ 10.16 412,028 $ 10.62 Options exercisable 138,577 $ 10.16 403,374 $ 10.60 Nine Months Ended September 30, 2019 2018 Shares Weighted Average Exercise Price Shares Weighted Outstanding, beginning of period 383,212 $ 10.44 65,978 $ 10.17 Rollover options — — 420,393 10.60 Exercised (244,249 ) 10.60 (74,343 ) 10.13 Granted — — — — Forfeited (386 ) 12.94 — — Outstanding, end of period 138,577 $ 10.16 412,028 $ 10.62 Options exercisable 138,577 $ 10.16 403,374 $ 10.60 |
Nonvested Restricted Stock Shares Activity | A summary of activity for outstanding restricted shares for the three and nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, 2019 2018 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, beginning of period 128,053 $ 22.91 77,627 $ 23.03 Granted 972 22.56 7,652 29.85 Vested (4,537 ) 26.41 (4,945 ) 22.24 Forfeited (843 ) 21.43 (2,016 ) 23.35 Nonvested, end of period 123,645 $ 22.79 78,318 $ 23.73 Nine Months Ended September 30, 2019 2018 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, beginning of period 84,120 $ 23.90 142,553 $ 20.28 Granted 111,205 22.19 18,592 27.71 Vested (64,012 ) 23.32 (75,958 ) 22.29 Forfeited (7,668 ) 21.83 (6,869 ) 20.45 Nonvested, end of period 123,645 $ 22.79 78,318 $ 23.73 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of net income and shares outstanding used in the computation of basic and diluted EPS: Three Months Ended Nine Months Ended September 30, September 30, June 30, September 30, 2019 2018 Numerator for basic earnings per share: (dollars in thousands, except share and per share data) Net income $ 8,071 $ 6,811 $ 2,604 $ 21,890 $ 8,417 Less: dividends and net income allocated to participating securities (86 ) (76 ) (17 ) (222 ) (73 ) Net income available to common shareholders $ 7,985 $ 6,735 $ 2,587 $ 21,668 $ 8,344 Denominator for basic earnings per share: Basic weighted average common shares outstanding during the period 11,584,955 11,581,889 10,144,954 11,605,687 8,170,234 Denominator for diluted earnings per share: Basic weighted average common shares outstanding during the period 11,584,955 11,581,889 10,144,954 11,605,687 8,170,234 Net effect of dilutive stock options 74,191 93,168 212,115 108,333 98,529 Diluted weighted average common shares 11,659,146 11,675,057 10,357,069 11,714,020 8,268,763 Net income per common share: Basic $ 0.69 $ 0.58 $ 0.26 $ 1.87 $ 1.02 Diluted $ 0.68 $ 0.58 $ 0.25 $ 1.85 $ 1.01 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018 : Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total September 30, 2019: (dollars in thousands) Securities available-for-sale: Mortgage-backed securities $ — $ 7,978 $ — $ 7,978 Collateralized mortgage obligations — 10,306 — 10,306 SBA Pools — 9,060 — 9,060 Securities available-for-sale $ — $ 27,344 $ — $ 27,344 Equity securities: Mutual fund investment $ 2,681 $ — $ — $ 2,681 December 31, 2018: Securities available-for-sale: Mortgage-backed securities $ — $ 8,844 $ — $ 8,844 Collateralized mortgage obligations — 11,461 — 11,461 SBA Pools — 9,238 — 9,238 Securities available-for-sale $ — $ 29,543 $ — $ 29,543 Equity securities: Mutual fund investment $ 2,538 $ — $ — $ 2,538 |
Schedule of Fair Value by Balance Sheet Grouping | The fair value hierarchy level and estimated fair value of significant financial instruments at September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial Assets: (dollars in thousands) Cash and cash equivalents Level 1 $ 180,615 $ 180,615 $ 197,376 $ 197,376 Securities available-for-sale Level 2 27,344 27,344 29,543 29,543 Securities held-to-maturity Level 2 5,066 5,110 5,322 5,095 Equity securities Level 1 2,681 2,681 2,538 2,538 Loans held for sale Level 2 11,906 12,594 28,022 29,238 Loan held for investment, net Level 3 1,304,280 1,341,668 1,239,925 1,265,013 Restricted stock investments, at cost Level 2 12,970 12,970 12,855 12,855 Servicing asset Level 3 3,370 3,345 3,186 3,295 Accrued interest receivable Level 2 5,477 5,477 5,069 5,069 Financial Liabilities: Deposits Level 2 $ 1,339,538 $ 1,339,611 $ 1,252,339 $ 1,250,555 Borrowings Level 2 30,000 30,000 104,998 104,998 Senior secured notes Level 2 13,100 13,100 8,450 8,450 Accrued interest payable Level 2 339 339 366 366 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following is a summary of our noninterest income in-scope and not in-scope of Topic 606: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (dollars in thousands) Noninterest income, in-scope: Service charges and fees on deposit accounts $ 475 $ 380 $ 1,579 $ 803 Other income 46 58 133 75 Total noninterest income, in-scope 521 438 1,712 878 Noninterest income, not in-scope: Gain on sale of loans 528 171 2,727 866 Net servicing fees 242 39 763 318 Change in fair value of equity securities 14 (23 ) 88 (140 ) Other income 368 87 827 146 Total noninterest income, not in-scope 1,152 274 4,405 1,190 Total noninterest income $ 1,673 $ 712 $ 6,117 $ 2,068 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segmentbranchlending_office | Sep. 30, 2018USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of full-service branches | branch | 9 | |||
Number of operating segments | segment | 1 | |||
Number of lending offices | lending_office | 2 | |||
Reclassification of stock-based compensation expense | $ 1,496 | $ 1,300 | ||
Operating lease right-of-use assets | 5,456 | $ 6,000 | ||
Operating lease liabilities | $ 5,714 | $ 6,100 | ||
Restatement Adjustments | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification of stock-based compensation expense | $ 97 | 289 | ||
Reclassification of rental income | $ 7 | $ 21 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jul. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill recognized | $ 73,425 | $ 73,425 | $ 73,425 | ||||
Amortization of core deposit intangible | 197 | $ 197 | $ 133 | 590 | |||
Core Deposit Intangibles | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization of core deposit intangible | $ 197 | $ 133 | $ 590 | $ 133 | |||
Pacific Commerce Bancorp | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill recognized | $ 73,400 | ||||||
Pacific Commerce Bancorp | Core Deposit Intangibles | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Core deposit intangible | $ 6,900 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Changes in CDI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated amortization: | |||||
Amortization | $ (197) | $ (197) | $ (133) | $ (590) | |
Net core deposit intangible, end of period | 5,986 | 5,986 | |||
Core Deposit Intangibles | |||||
Core deposit intangible: | |||||
Gross balance, beginning of period | 6,908 | 0 | 6,908 | $ 0 | |
Additions | 0 | 6,908 | 0 | 6,908 | |
Gross balance, end of period | 6,908 | 6,908 | 6,908 | 6,908 | 6,908 |
Accumulated amortization: | |||||
Balance, beginning of period | (725) | (332) | |||
Amortization | (197) | (133) | (590) | (133) | |
Balance, end of period | (922) | $ (725) | (133) | (922) | (133) |
Net core deposit intangible, end of period | $ 5,986 | $ 6,775 | $ 5,986 | $ 6,775 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Total estimated amortization expense | $ 5,986 | $ 6,576 | |
Core Deposit Intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Remainder 2019 | 196 | ||
2020 | 771 | ||
2021 | 753 | ||
2022 | 732 | ||
2023 | 707 | ||
Thereafter | 2,827 | ||
Total estimated amortization expense | $ 5,986 | $ 6,775 |
Investment Securities - Carryin
Investment Securities - Carrying Amount of Held-to-Maturity and Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | $ 27,287 | $ 30,536 |
Gross Unrealized Gains | 204 | 2 |
Gross Unrealized Losses | (147) | (995) |
Securities available-for-sale | 27,344 | 29,543 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 5,066 | 5,322 |
Gross Unrealized Gains | 60 | 0 |
Gross Unrealized Losses | (16) | (227) |
Securities held-to-maturity | 5,110 | 5,095 |
U.S. Government and agency securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 3,342 | 3,340 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (122) |
Securities held-to-maturity | 3,341 | 3,218 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 8,057 | 9,177 |
Gross Unrealized Gains | 25 | 0 |
Gross Unrealized Losses | (104) | (333) |
Securities available-for-sale | 7,978 | 8,844 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 1,724 | 1,982 |
Gross Unrealized Gains | 60 | 0 |
Gross Unrealized Losses | (15) | (105) |
Securities held-to-maturity | 1,769 | 1,877 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 10,293 | 11,731 |
Gross Unrealized Gains | 46 | 2 |
Gross Unrealized Losses | (33) | (272) |
Securities available-for-sale | 10,306 | 11,461 |
SBA Pools | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 8,937 | 9,628 |
Gross Unrealized Gains | 133 | 0 |
Gross Unrealized Losses | (10) | (390) |
Securities available-for-sale | $ 9,060 | $ 9,238 |
Investment Securities - Investm
Investment Securities - Investments by Maturity Dates (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Held-to-Maturity Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 3,342 | |
Due after five years through ten years | 0 | |
Due after ten years | 1,724 | |
Amortized Cost | 5,066 | $ 5,322 |
Held-to-Maturity Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 3,341 | |
Due after five years through ten years | 0 | |
Due after ten years | 1,769 | |
Securities held-to-maturity | 5,110 | 5,095 |
Available-for-Sale Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 27,287 | |
Amortized Cost | 27,287 | 30,536 |
Available-for-Sale Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 27,344 | |
Securities available-for-sale | $ 27,344 | $ 29,543 |
Investment Securities - Unreali
Investment Securities - Unrealized Loss Position of AFS and HTM Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
AFS, debt securities, gross unrealized loss position, less than 12 months | $ (10) | $ (23) |
AFS, debt securities, less than 12 months, fair value | 3,144 | 3,524 |
AFS, debt securities, gross unrealized loss position, 12 months or longer | (137) | (972) |
AFS, debt securities, 12 months or longer, fair value | 8,872 | 25,427 |
AFS, debt securities, total gross unrealized loss position | (147) | (995) |
AFS, total fair value | 12,016 | 28,951 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
HTM, gross unrealized loss position, less than 12 months | (1) | 0 |
HTM, less than 12 months, fair value | 3,341 | 0 |
HTM, gross unrealized loss position, 12 months or longer | (15) | (227) |
HTM, 12 months or longer, fair value | 795 | 5,095 |
HTM, total gross unrealized losses | (16) | (227) |
HTM, total fair value | 4,136 | 5,095 |
U.S. Government and agency securities | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
HTM, gross unrealized loss position, less than 12 months | (1) | 0 |
HTM, less than 12 months, fair value | 3,341 | 0 |
HTM, gross unrealized loss position, 12 months or longer | 0 | (122) |
HTM, 12 months or longer, fair value | 0 | 3,218 |
HTM, total gross unrealized losses | (1) | (122) |
HTM, total fair value | 3,341 | 3,218 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
AFS, debt securities, gross unrealized loss position, less than 12 months | 0 | (20) |
AFS, debt securities, less than 12 months, fair value | 0 | 2,397 |
AFS, debt securities, gross unrealized loss position, 12 months or longer | (104) | (313) |
AFS, debt securities, 12 months or longer, fair value | 6,525 | 6,447 |
AFS, debt securities, total gross unrealized loss position | (104) | (333) |
AFS, total fair value | 6,525 | 8,844 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
HTM, gross unrealized loss position, less than 12 months | 0 | 0 |
HTM, less than 12 months, fair value | 0 | 0 |
HTM, gross unrealized loss position, 12 months or longer | (15) | (105) |
HTM, 12 months or longer, fair value | 795 | 1,877 |
HTM, total gross unrealized losses | (15) | (105) |
HTM, total fair value | 795 | 1,877 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
AFS, debt securities, gross unrealized loss position, less than 12 months | 0 | (3) |
AFS, debt securities, less than 12 months, fair value | 0 | 1,127 |
AFS, debt securities, gross unrealized loss position, 12 months or longer | (33) | (269) |
AFS, debt securities, 12 months or longer, fair value | 2,347 | 9,742 |
AFS, debt securities, total gross unrealized loss position | (33) | (272) |
AFS, total fair value | 2,347 | 10,869 |
SBA Pools | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
AFS, debt securities, gross unrealized loss position, less than 12 months | (10) | 0 |
AFS, debt securities, less than 12 months, fair value | 3,144 | 0 |
AFS, debt securities, gross unrealized loss position, 12 months or longer | 0 | (390) |
AFS, debt securities, 12 months or longer, fair value | 0 | 9,238 |
AFS, debt securities, total gross unrealized loss position | (10) | (390) |
AFS, total fair value | $ 3,144 | $ 9,238 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | ||
Concentration Risk [Line Items] | |||||||
Sale of available-for-sale investment securities | $ 0 | $ 1,236,000 | $ 0 | $ 1,200,000 | |||
Held-to-maturity securities, pledged to Federal Reserve Bank | $ 5,100,000 | $ 5,100,000 | |||||
Securities in unrealized loss position | security | 13 | 13 | |||||
Value of securities in unrealized loss securities | $ (163,000) | $ (163,000) | |||||
Equity securities, at fair value | 2,681,000 | 2,681,000 | $ 2,538,000 | ||||
Gain (loss) recognized related to changes in fair value | 88,000 | (140,000) | |||||
Investment in restricted common stock, at cost | 6,100,000 | 6,100,000 | 6,100,000 | ||||
Federal Reserve Bank stock | 6,800,000 | 6,800,000 | 6,700,000 | ||||
Payments to acquire Federal Reserve Bank stock | 43,000 | 115,000 | |||||
AOCI Attributable to Parent | |||||||
Concentration Risk [Line Items] | |||||||
Cumulative adjustment – adoption of ASU No. 2016-01 | [1] | $ 24,000 | |||||
Retained Earnings | |||||||
Concentration Risk [Line Items] | |||||||
Cumulative adjustment – adoption of ASU No. 2016-01 | [1] | (24,000) | |||||
Accounting Standards Update 2016-01 | AOCI Attributable to Parent | |||||||
Concentration Risk [Line Items] | |||||||
Cumulative adjustment – adoption of ASU No. 2016-01 | (24,000) | ||||||
Accounting Standards Update 2016-01 | Retained Earnings | |||||||
Concentration Risk [Line Items] | |||||||
Cumulative adjustment – adoption of ASU No. 2016-01 | [1] | $ 24,000 | |||||
Mutual Funds | |||||||
Concentration Risk [Line Items] | |||||||
Equity securities, at fair value | 2,700,000 | 2,700,000 | 2,500,000 | ||||
Gain (loss) recognized related to changes in fair value | 14,000 | (23,000) | 88,000 | (94,000) | |||
Other Bank Stock | |||||||
Concentration Risk [Line Items] | |||||||
Gain (loss) recognized related to changes in fair value | 0 | $ 0 | 0 | $ (46,000) | |||
Equity securities, restricted | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||
Minimum | |||||||
Concentration Risk [Line Items] | |||||||
FHLB required stock ownership percentage of membership asset value | 1.00% | 1.00% | |||||
FHLB required stock ownership percentage of outstanding advances | 2.70% | 2.70% | |||||
[1] | Impact due to adoption on January 1, 2018 of ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" |
Loans (Details)
Loans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018loan | Dec. 31, 2018USD ($) | |
Financing Receivable, Modifications [Line Items] | |||||
Recorded investment in loans identified as troubled debt restructuring | $ 7,732 | $ 7,732 | $ 2,049 | ||
Loans modified as troubled debt restructuring | loan | 0 | 0 | 0 | ||
Number of loans modified as troubled debt restructuring, subsequent default | loan | 1 | 1 | |||
Loans modified as troubled debt restructuring, subsequent default | $ 92 | $ 95 | |||
Loans held for sale, at lower of cost or fair value | 11,906 | $ 11,906 | 28,022 | ||
Loans held for sale | 12,600 | 12,600 | 29,200 | ||
Restructured Loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Recorded investment in loans identified as troubled debt restructuring | 490 | 490 | $ 922 | ||
Federal Home Loan Bank | |||||
Financing Receivable, Modifications [Line Items] | |||||
Loans pledged as collateral with the FHLB | 879,100 | 879,100 | |||
Federal Reserve Bank | |||||
Financing Receivable, Modifications [Line Items] | |||||
Loans pledged as collateral with the FHLB | $ 226,900 | $ 226,900 |
Loans - Composition of Loan Por
Loans - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | $ 1,317,060 | $ 1,251,118 | $ 1,225,536 | |||
Net deferred origination fees | (440) | (137) | ||||
Loans held for investment | 1,316,620 | 1,250,981 | ||||
Allowance for loan losses | (12,340) | $ (12,053) | (11,056) | (10,656) | $ (10,376) | $ (10,497) |
Loans held for investment, net | 1,304,280 | 1,239,925 | ||||
Construction and Land Development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 221,857 | 184,177 | 172,938 | |||
Allowance for loan losses | (2,139) | (1,892) | (1,721) | (1,898) | (1,603) | (1,597) |
Commercial and Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 311,205 | 281,718 | 270,661 | |||
Allowance for loan losses | (4,473) | (4,502) | (3,686) | (3,103) | (3,288) | (3,232) |
SBA Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 161,608 | 146,462 | 147,359 | |||
Allowance for loan losses | (2,187) | (1,788) | (1,807) | (1,640) | (1,709) | (1,494) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 424 | 159 | 0 | |||
Allowance for loan losses | (3) | 0 | 0 | 0 | 0 | (8) |
Residential | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 48,896 | 57,443 | 60,570 | |||
Allowance for loan losses | (332) | (379) | (422) | (412) | (384) | (375) |
Commercial real estate - owner occupied | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 171,360 | 179,494 | 181,089 | |||
Allowance for loan losses | (798) | (905) | (734) | (778) | (637) | (655) |
Commercial real estate - non-owner occupied | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 401,710 | 401,665 | 392,919 | |||
Allowance for loan losses | (2,408) | $ (2,587) | (2,686) | (2,825) | $ (2,755) | $ (3,136) |
Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 1,315,880 | 1,248,474 | ||||
Net deferred origination fees | (440) | (137) | ||||
Loans held for investment | 1,315,440 | 1,248,337 | ||||
Allowance for loan losses | (12,340) | (11,056) | ||||
Loans held for investment, net | 1,303,100 | 1,237,281 | ||||
Loans | Construction and Land Development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 221,857 | 184,177 | ||||
Loans | Commercial and Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 310,699 | 281,121 | ||||
Loans | SBA Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 161,044 | 145,622 | ||||
Loans | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 424 | 159 | ||||
Loans | Residential | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 48,896 | 57,443 | ||||
Loans | Commercial real estate - owner occupied | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 171,250 | 179,362 | ||||
Loans | Commercial real estate - non-owner occupied | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 401,710 | 400,590 | ||||
PCI Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 1,180 | 2,644 | 3,019 | |||
Net deferred origination fees | 0 | 0 | ||||
Loans held for investment | 1,180 | 2,644 | ||||
Allowance for loan losses | 0 | 0 | ||||
Loans held for investment, net | 1,180 | 2,644 | ||||
PCI Loans | Construction and Land Development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 0 | 0 | 0 | |||
PCI Loans | Commercial and Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 506 | 597 | 645 | |||
PCI Loans | SBA Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 564 | 840 | 887 | |||
PCI Loans | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 0 | 0 | 0 | |||
PCI Loans | Residential | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 0 | 0 | 0 | |||
PCI Loans | Commercial real estate - owner occupied | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 110 | 132 | 104 | |||
PCI Loans | Commercial real estate - non-owner occupied | Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | $ 0 | $ 1,075 | $ 1,383 |
Loans - Loans Held for Investme
Loans - Loans Held for Investment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans(1) | $ 1,328,031 | $ 1,263,891 |
Unamortized net discounts | (10,971) | (12,773) |
Net unamortized deferred origination fees | (440) | (137) |
Loans held for investment | 1,316,620 | 1,250,981 |
Pacific Commerce Bancorp | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net discount on acquired loans | $ 7,600 | 9,500 |
Net discount on acquired loans, weighted average life | 5 years 1 month 2 days | |
PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans(1) | $ 1,200 | 2,600 |
Net unamortized deferred origination fees | 0 | 0 |
Loans held for investment | $ 1,180 | $ 2,644 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of period | $ 12,053 | $ 10,376 | $ 11,056 | $ 10,497 | |
Provision for loan losses | 700 | $ 550 | 600 | 1,600 | 1,120 |
Charge-offs | (437) | (358) | (561) | (1,133) | |
Recoveries | 24 | 38 | 245 | 172 | |
Net charge-offs | (413) | (320) | (316) | (961) | |
Balance, end of period | $ 12,340 | $ 12,053 | $ 10,656 | $ 12,340 | $ 10,656 |
Loans - Allowance for Loan Lo_2
Loans - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | $ 12,053 | $ 10,376 | $ 11,056 | $ 10,497 | ||||
Provision for (reversal of) loan losses | 700 | $ 550 | 600 | 1,600 | 1,120 | |||
Charge-offs | (437) | (358) | (561) | (1,133) | ||||
Recoveries | 24 | 38 | 245 | 172 | ||||
Net charge-offs | (413) | (320) | (316) | (961) | ||||
Balance, end of period | 12,340 | 12,053 | 10,656 | 12,340 | 10,656 | |||
Reserves: | ||||||||
Specific | $ 624 | $ 0 | ||||||
General | 11,716 | 10,656 | ||||||
Total loan reserve | 12,053 | 12,053 | 10,376 | 11,056 | 10,497 | 12,340 | $ 11,056 | 10,656 |
Loans evaluated for impairment: | ||||||||
Individually | 7,732 | 1,127 | ||||||
Collectively | 1,308,148 | 1,221,390 | ||||||
Total loans evaluated for impairment | 1,317,060 | 1,251,118 | 1,225,536 | |||||
PCI Loans | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | 0 | |||||||
Balance, end of period | 0 | 0 | ||||||
Reserves: | ||||||||
Total loan reserve | 0 | 0 | 0 | 0 | ||||
Loans evaluated for impairment: | ||||||||
Total loans evaluated for impairment | 1,180 | 2,644 | 3,019 | |||||
Construction and Land Development | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | 1,892 | 1,603 | 1,721 | 1,597 | ||||
Provision for (reversal of) loan losses | 247 | 295 | 418 | 301 | ||||
Charge-offs | 0 | 0 | 0 | 0 | ||||
Recoveries | 0 | 0 | 0 | 0 | ||||
Net charge-offs | 0 | 0 | 0 | 0 | ||||
Balance, end of period | 2,139 | 1,892 | 1,898 | 2,139 | 1,898 | |||
Reserves: | ||||||||
Specific | 0 | 0 | ||||||
General | 2,139 | 1,898 | ||||||
Total loan reserve | 1,892 | 1,892 | 1,603 | 1,721 | 1,597 | 2,139 | 1,721 | 1,898 |
Loans evaluated for impairment: | ||||||||
Individually | 0 | 0 | ||||||
Collectively | 221,857 | 172,938 | ||||||
Total loans evaluated for impairment | 221,857 | 184,177 | 172,938 | |||||
Construction and Land Development | PCI Loans | ||||||||
Loans evaluated for impairment: | ||||||||
Total loans evaluated for impairment | 0 | 0 | 0 | |||||
Commercial and Industrial | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | 4,502 | 3,288 | 3,686 | 3,232 | ||||
Provision for (reversal of) loan losses | 384 | (215) | 1,292 | 221 | ||||
Charge-offs | (437) | (8) | (561) | (522) | ||||
Recoveries | 24 | 38 | 56 | 172 | ||||
Net charge-offs | (413) | 30 | (505) | (350) | ||||
Balance, end of period | 4,473 | 4,502 | 3,103 | 4,473 | 3,103 | |||
Reserves: | ||||||||
Specific | 0 | 0 | ||||||
General | 4,473 | 3,103 | ||||||
Total loan reserve | 4,502 | 4,502 | 3,288 | 3,686 | 3,232 | 4,473 | 3,686 | 3,103 |
Loans evaluated for impairment: | ||||||||
Individually | 730 | 95 | ||||||
Collectively | 309,969 | 269,921 | ||||||
Total loans evaluated for impairment | 311,205 | 281,718 | 270,661 | |||||
Commercial and Industrial | PCI Loans | ||||||||
Loans evaluated for impairment: | ||||||||
Total loans evaluated for impairment | 506 | 597 | 645 | |||||
SBA Loans | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | 1,788 | 1,709 | 1,807 | 1,494 | ||||
Provision for (reversal of) loan losses | 399 | 281 | 191 | 757 | ||||
Charge-offs | 0 | (350) | 0 | (611) | ||||
Recoveries | 0 | 0 | 189 | 0 | ||||
Net charge-offs | 0 | (350) | 189 | (611) | ||||
Balance, end of period | 2,187 | 1,788 | 1,640 | 2,187 | 1,640 | |||
Reserves: | ||||||||
Specific | 624 | 0 | ||||||
General | 1,563 | 1,640 | ||||||
Total loan reserve | 1,788 | 1,788 | 1,709 | 1,807 | 1,494 | 2,187 | 1,807 | 1,640 |
Loans evaluated for impairment: | ||||||||
Individually | 7,002 | 1,032 | ||||||
Collectively | 154,042 | 145,440 | ||||||
Total loans evaluated for impairment | 161,608 | 146,462 | 147,359 | |||||
SBA Loans | PCI Loans | ||||||||
Loans evaluated for impairment: | ||||||||
Total loans evaluated for impairment | 564 | 840 | 887 | |||||
Consumer | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | 0 | 0 | 0 | 8 | ||||
Provision for (reversal of) loan losses | 3 | 0 | 3 | (8) | ||||
Charge-offs | 0 | 0 | 0 | 0 | ||||
Recoveries | 0 | 0 | 0 | 0 | ||||
Net charge-offs | 0 | 0 | 0 | 0 | ||||
Balance, end of period | 3 | 0 | 0 | 3 | 0 | |||
Reserves: | ||||||||
Specific | 0 | 0 | ||||||
General | 3 | 0 | ||||||
Total loan reserve | 0 | 0 | 0 | 0 | 8 | 3 | 0 | 0 |
Loans evaluated for impairment: | ||||||||
Individually | 0 | 0 | ||||||
Collectively | 424 | 0 | ||||||
Total loans evaluated for impairment | 424 | 159 | 0 | |||||
Consumer | PCI Loans | ||||||||
Loans evaluated for impairment: | ||||||||
Total loans evaluated for impairment | 0 | 0 | 0 | |||||
Residential | Real Estate | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | 379 | 384 | 422 | 375 | ||||
Provision for (reversal of) loan losses | (47) | 28 | (90) | 37 | ||||
Charge-offs | 0 | 0 | 0 | 0 | ||||
Recoveries | 0 | 0 | 0 | 0 | ||||
Net charge-offs | 0 | 0 | 0 | 0 | ||||
Balance, end of period | 332 | 379 | 412 | 332 | 412 | |||
Reserves: | ||||||||
Specific | 0 | 0 | ||||||
General | 332 | 412 | ||||||
Total loan reserve | 379 | 379 | 384 | 422 | 375 | 332 | 422 | 412 |
Loans evaluated for impairment: | ||||||||
Individually | 0 | 0 | ||||||
Collectively | 48,896 | 60,570 | ||||||
Total loans evaluated for impairment | 48,896 | 57,443 | 60,570 | |||||
Residential | Real Estate | PCI Loans | ||||||||
Loans evaluated for impairment: | ||||||||
Total loans evaluated for impairment | 0 | 0 | 0 | |||||
Commercial real estate - owner occupied | Real Estate | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | 905 | 637 | 734 | 655 | ||||
Provision for (reversal of) loan losses | (107) | 141 | 64 | 123 | ||||
Charge-offs | 0 | 0 | 0 | 0 | ||||
Recoveries | 0 | 0 | 0 | 0 | ||||
Net charge-offs | 0 | 0 | 0 | 0 | ||||
Balance, end of period | 798 | 905 | 778 | 798 | 778 | |||
Reserves: | ||||||||
Specific | 0 | 0 | ||||||
General | 798 | 778 | ||||||
Total loan reserve | 905 | 905 | 637 | 734 | 655 | 798 | 734 | 778 |
Loans evaluated for impairment: | ||||||||
Individually | 0 | 0 | ||||||
Collectively | 171,250 | 180,985 | ||||||
Total loans evaluated for impairment | 171,360 | 179,494 | 181,089 | |||||
Commercial real estate - owner occupied | Real Estate | PCI Loans | ||||||||
Loans evaluated for impairment: | ||||||||
Total loans evaluated for impairment | 110 | 132 | 104 | |||||
Commercial real estate - non-owner occupied | Real Estate | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance, beginning of period | 2,587 | 2,755 | 2,686 | 3,136 | ||||
Provision for (reversal of) loan losses | (179) | 70 | (278) | (311) | ||||
Charge-offs | 0 | 0 | 0 | 0 | ||||
Recoveries | 0 | 0 | 0 | 0 | ||||
Net charge-offs | 0 | 0 | 0 | 0 | ||||
Balance, end of period | 2,408 | 2,587 | 2,825 | 2,408 | 2,825 | |||
Reserves: | ||||||||
Specific | 0 | 0 | ||||||
General | 2,408 | 2,825 | ||||||
Total loan reserve | $ 2,587 | $ 2,587 | $ 2,755 | $ 2,686 | $ 3,136 | 2,408 | 2,686 | 2,825 |
Loans evaluated for impairment: | ||||||||
Individually | 0 | 0 | ||||||
Collectively | 401,710 | 391,536 | ||||||
Total loans evaluated for impairment | 401,710 | 401,665 | 392,919 | |||||
Commercial real estate - non-owner occupied | Real Estate | PCI Loans | ||||||||
Loans evaluated for impairment: | ||||||||
Total loans evaluated for impairment | $ 0 | $ 1,075 | $ 1,383 |
Loans - Risk Category of Loans
Loans - Risk Category of Loans by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | $ 1,315,880 | $ 1,248,474 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 1,294,069 | 1,223,121 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 20,396 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 21,811 | 4,957 |
Impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 7,400 | 1,700 |
Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 221,857 | 184,177 |
Construction and Land Development | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 221,857 | 184,177 |
Construction and Land Development | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 0 |
Construction and Land Development | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 310,699 | 281,121 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 305,226 | 269,640 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 8,341 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 5,473 | 3,140 |
SBA Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 161,044 | 145,622 |
SBA Loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 150,719 | 137,740 |
SBA Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 6,065 |
SBA Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 10,325 | 1,817 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 424 | 159 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 424 | 159 |
Consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 0 |
Residential | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 48,896 | 57,443 |
Residential | Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 48,896 | 57,443 |
Residential | Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 0 |
Residential | Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 0 |
Commercial real estate - owner occupied | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 171,250 | 179,362 |
Commercial real estate - owner occupied | Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 166,085 | 174,505 |
Commercial real estate - owner occupied | Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 4,857 |
Commercial real estate - owner occupied | Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 5,165 | 0 |
Commercial real estate - non-owner occupied | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 401,710 | 400,590 |
Commercial real estate - non-owner occupied | Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 400,862 | 399,457 |
Commercial real estate - non-owner occupied | Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | 0 | 1,133 |
Commercial real estate - non-owner occupied | Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment, net of discounts | $ 848 | $ 0 |
Loans - Past Due and Nonaccrual
Loans - Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $ 7,408 | $ 1,722 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 483 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4 | 1 |
90 Days or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 730 | 89 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 3 |
Commercial and Industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4 | 1 |
Commercial and Industrial | 90 Days or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
SBA Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 6,678 | 1,633 |
SBA Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
SBA Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
SBA Loans | 90 Days or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Residential | Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Residential | Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 480 |
Residential | Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Residential | Real Estate | 90 Days or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 0 | $ 0 |
Loans - Individually Impaired L
Loans - Individually Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 8,670 | $ 3,142 |
Recorded investment | 7,732 | 2,049 |
Impaired loans, without specific reserve | 5,833 | 2,049 |
Impaired loans, with specific reserve | 1,899 | 0 |
Related Allowance | 624 | 0 |
Commercial and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 828 | 178 |
Recorded investment | 730 | 89 |
Impaired loans, without specific reserve | 730 | 89 |
Impaired loans, with specific reserve | 0 | 0 |
Related Allowance | 0 | 0 |
SBA Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 7,842 | 2,964 |
Recorded investment | 7,002 | 1,960 |
Impaired loans, without specific reserve | 5,103 | 1,960 |
Impaired loans, with specific reserve | 1,899 | 0 |
Related Allowance | 624 | 0 |
TDRs on Accrual | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment | $ 324 | $ 327 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 4,911 | $ 1,903 | $ 2,867 | $ 1,698 |
Interest Income Recognized | 54 | 9 | 71 | 19 |
Commercial and Industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 732 | 98 | 304 | 239 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
SBA Loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 4,179 | 1,805 | 2,563 | 1,459 |
Interest Income Recognized | $ 54 | $ 9 | $ 71 | $ 19 |
Loans - Changes in Carrying Amo
Loans - Changes in Carrying Amount and Accretable Yield of PCI Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Carrying Amount | ||
Balance, beginning of period | $ 2,281 | $ 2,644 |
Accretion | 1,635 | 1,950 |
Payments received | (2,780) | (3,447) |
Increase in expected cash flows, net | 44 | 33 |
Balance, end of period | 1,180 | 1,180 |
Accretable Yield | ||
Balance, beginning of period | 1,928 | 2,073 |
Accretion | (1,635) | (1,950) |
Increase in expected cash flows, net | 814 | 984 |
Balance, end of period | $ 1,107 | $ 1,107 |
Transfers and Servicing of Fi_3
Transfers and Servicing of Financial Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||||
Loans serviced for others | $ 295,700 | $ 295,700 | $ 288,200 | |||
Servicing asset | 3,370 | 3,370 | 3,186 | |||
Loans serviced for others with no related servicing assets | 82,200 | 82,200 | 89,800 | |||
Net servicing fees | 242 | $ 287 | $ 39 | 763 | $ 318 | |
SBA Loans | ||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||||
Loans serviced for others | 213,500 | 213,500 | 198,400 | |||
Servicing asset at fair value | 3,300 | $ 3,300 | $ 3,300 | |||
Change in assumption, prepayment speed | 17.90% | |||||
SBA loans sold | 9,700 | 2,400 | $ 44,700 | 11,200 | ||
Total gain on sale of SBA loans | 500 | 171 | 2,700 | 866 | ||
Net servicing fees | 242 | 39 | 763 | 318 | ||
Contractually specified servicing fees | $ 524 | $ 435 | $ 1,500 | $ 1,100 | ||
Minimum | ||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||||
Servicing fees, percentage | 0.25% | |||||
Change in assumption, discount rate | 1.00% | |||||
Change in assumption, prepayment speed | 10.00% | |||||
Minimum | SBA Loans | ||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||||
Change in assumption, discount rate | 6.80% | |||||
Maximum | ||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||||
Servicing fees, percentage | 1.00% | |||||
Change in assumption, discount rate | 2.00% | |||||
Change in assumption, prepayment speed | 20.00% | |||||
Maximum | SBA Loans | ||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||||
Change in assumption, discount rate | 35.30% |
Transfers and Servicing of Fi_4
Transfers and Servicing of Financial Assets - SBA Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance, beginning of period | $ 3,482 | $ 2,448 | $ 3,186 | $ 2,618 |
Additions (1) | 170 | 1,111 | 883 | 1,297 |
Amortization | (282) | (397) | (699) | (753) |
Balance, end of period | $ 3,370 | 3,162 | $ 3,370 | 3,162 |
Pacific Commerce Bancorp | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Additions (1) | $ 1,054 | $ 1,100 |
Transfers and Servicing of Fi_5
Transfers and Servicing of Financial Assets - Prepayment Speeds and Assumptions (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | |
Change in estimated fair value, prepayment speeds, 10% | $ (179) |
Change in estimated fair value, prepayment speeds, 20% | (341) |
Change in estimated fair value, discount rate, 1% | (88) |
Change in estimated fair value, discount rate, 2% | $ (172) |
Minimum | |
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | |
Change in assumption, prepayment speed | 10.00% |
Maximum | |
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | |
Change in assumption, prepayment speed | 20.00% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 5,456 | $ 6,000 |
Operating lease liabilities | 5,714 | $ 6,100 |
Impairment of right of use asset | 220 | |
Impairment of other long lived assets related to pending consolidation | $ 180 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 9 months | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 5 years 3 months 4 days |
Leases - Supplemental Lease Inf
Leases - Supplemental Lease Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Balance Sheet and Supplemental Information | ||
Operating lease ROU assets classified as other assets | $ 5,456 | $ 6,000 |
Operating lease liability classified as other liabilities | $ 5,714 | $ 6,100 |
Weighted average remaining lease term, in years | 3 years 1 month 13 days | |
Weighted average discount rate | 2.52% |
Leases - Lease Cost and Other L
Leases - Lease Cost and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Costs | ||
Operating lease cost | $ 543 | $ 1,629 |
Variable lease cost | 47 | 103 |
Short-term lease cost | 3 | 17 |
Total lease costs | 593 | 1,749 |
Other Information | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 553 | $ 1,673 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 2,113 | |
2021 | 1,715 | |
2022 | 1,518 | |
2023 | 422 | |
2024 | 139 | |
Thereafter | 35 | |
Total future minimum lease payments | 5,942 | |
Less: Imputed interest | (228) | |
Present value of net future minimum lease payments | $ 5,714 | $ 6,100 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Depositor relationships, percentage of total deposits | 28.00% | 25.00% |
Time deposits, equaling or exceeding FDIC insurance limit | $ 76.9 | $ 109.4 |
Time deposits collateralized by the State of California | 25 | $ 35 |
State public deposits | $ 64.8 |
Borrowing Arrangements (Details
Borrowing Arrangements (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)bank | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Average balance of FHLB borrowings | $ 48,300,000 | $ 4,600,000 | $ 53,100,000 | $ 29,000,000 | |
Average balance of FHLB borrowings, interest rate | 2.08% | 2.17% | 2.39% | 1.73% | |
Primary correspondent bank | bank | 5 | ||||
Senior secured debt | $ 13,100,000 | $ 13,100,000 | $ 8,450,000 | ||
Federal Reserve Bank | |||||
Debt Instrument [Line Items] | |||||
Loans pledged as collateral with the FHLB | 226,900,000 | 226,900,000 | |||
Maximum borrowing capacity | 168,144,000 | 168,144,000 | |||
Collateral amount | $ 5,100,000 | $ 5,100,000 | |||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 5.69% | 5.38% | 5.82% | 5.20% | |
Senior secured debt | $ 13,100,000 | $ 13,100,000 | $ 8,500,000 | ||
Effective percentage | 5.25% | 5.25% | 5.75% | ||
Average outstanding borrowings | $ 12,300,000 | $ 5,000,000 | $ 12,200,000 | $ 3,100,000 | |
Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity, Federal Home Loan Bank borrowing | 77,000,000 | 77,000,000 | |||
Overnight borrowings | 0 | 0 | $ 15,000,000 | ||
Average borrowings, Federal Funds purchased | $ 924,000 | $ 800,000 | $ 531,000 | ||
Weighted average interest rate | 2.15% | 2.70% | 2.52% | ||
Federal Home Loan Bank Advances | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity, Federal Home Loan Bank borrowing | 432,600,000 | $ 432,600,000 | |||
Line of credit facility, remaining borrowing capacity | 330,100,000 | 330,100,000 | |||
Federal Home Loan Bank borrowings | 0 | 0 | $ 90,000,000 | ||
Interest rate, Federal Home Loan Bank borrowings | 2.56% | ||||
FHLB secured borrowing capacity, additional amount used | 72,500,000 | 72,500,000 | |||
Affiliated Entity | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 11,900,000 | 11,900,000 | |||
Long Term, Fixed-Rate Advance, Maturing June 2021 | Federal Home Loan Bank Advances | |||||
Debt Instrument [Line Items] | |||||
Federal Home Loan Bank borrowings | $ 30,000,000 | $ 30,000,000 | $ 0 | ||
Interest rate, Federal Home Loan Bank borrowings | 1.93% | 1.93% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Decrease in deferred tax asset | $ 2,300,000 | |||||
Income taxes | $ 3,277,000 | $ 3,192,000 | $ 932,000 | $ 9,725,000 | $ 3,317,000 | |
Effective income tax rate | 28.90% | 26.40% | 30.80% | 28.30% | ||
Statutory tax rate | 29.60% | 29.60% | ||||
Unrecognized tax benefits | $ 116,000 | $ 116,000 | $ 480,000 | |||
Tax benefits that would favorably impact effective tax rate | 0 | 0 | 0 | |||
Decrease in unrecognized tax benefits | 3,000 | |||||
Unrecognized tax benefits, interest accrued | $ 18,000 | $ 18,000 | $ 59,000 |
Commitments - Financial Commitm
Commitments - Financial Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial commitments | $ 397,359 | $ 380,159 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial commitments | 386,974 | 375,755 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial commitments | 8,353 | 4,019 |
Commitments to contribute capital to low income housing project partnerships and other CRA investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial commitments | $ 2,032 | $ 385 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Allowance for unfunded commitments | $ 1.4 | $ 1.4 |
Unfunded commitments to contribute capital | $ 2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Deposits from related party, held by the Company | $ 32,700,000 | $ 33,200,000 |
Senior secured debt | 13,100,000 | 8,450,000 |
Secured Debt | ||
Related Party Transaction [Line Items] | ||
Senior secured debt | 13,100,000 | $ 8,500,000 |
Secured Debt | Management | ||
Related Party Transaction [Line Items] | ||
Senior secured facility | $ 25,000,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 527 | $ 409 | $ 1,500 | $ 1,300 | |
Options, exercises in period, intrinsic value | 25 | 1,200 | $ 2,700 | 1,200 | |
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Stock options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Stock options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Restricted stocks | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | 1,500 | $ 1,500 | |||
Compensation cost not yet recognized, period for recognition | 2 years 6 months | ||||
Options, vested in period, intrinsic value | $ 120 | $ 136 | $ 1,500 | $ 1,900 | |
2013 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 1,390,620 | 1,390,620 | |||
2013 Plan | Incentive Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 300,000 | 300,000 | |||
Pacific Commerce Bancorp | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Rollover options issued in connection with acquisition (in shares) | 420,393 | ||||
Fair value of rollover options | $ 7,400 | ||||
Pacific Commerce Bancorp | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining term of rollover options | 1 month | ||||
Pacific Commerce Bancorp | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining term of rollover options | 9 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summary of Outstanding Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 141,089 | 65,978 | 383,212 | 65,978 |
Rollover options (in shares) | 0 | 420,393 | 0 | 420,393 |
Exercised (in shares) | (2,512) | (74,343) | (244,249) | (74,343) |
Granted (in shares) | 0 | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | (386) | 0 |
Outstanding, end of period (in shares) | 138,577 | 412,028 | 138,577 | 412,028 |
Option exercisable (in shares) | 138,577 | 403,374 | 138,577 | 403,374 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 10.18 | $ 10.17 | $ 10.44 | $ 10.17 |
Rollover options (in dollars per share) | 0 | 10.60 | 0 | 10.60 |
Exercised (in dollars per share) | 11.60 | 10.13 | 10.60 | 10.13 |
Granted (in dollars per share) | 0 | 0 | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 | 12.94 | 0 |
Outstanding, end of period (in dollars per share) | 10.16 | 10.62 | 10.16 | 10.62 |
Option exercisable (in dollars per share) | $ 10.16 | $ 10.60 | $ 10.16 | $ 10.60 |
Outstanding, weighted average remaining contractual term | 4 years 2 months 10 days | 2 years 6 months | ||
Exercisable, weighted average remaining contractual term | 2 years 4 months 24 days | |||
Outstanding, aggregate intrinsic value | $ 1,547 | $ 6,787 | $ 1,547 | $ 6,787 |
Exercisable, aggregate intrinsic value | $ 6,650 | $ 6,650 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Outstanding Restricted Shares (Details) - Restricted stocks - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, beginning of period (in shares) | 128,053 | 77,627 | 84,120 | 142,553 |
Granted (in shares) | 972 | 7,652 | 111,205 | 18,592 |
Shares vested (in shares) | (4,537) | (4,945) | (64,012) | (75,958) |
Shares forfeited (in shares) | (843) | (2,016) | (7,668) | (6,869) |
Nonvested, end of period (in shares) | 123,645 | 78,318 | 123,645 | 78,318 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Nonvested, beginning of period (in dollars per share) | $ 22.91 | $ 23.03 | $ 23.90 | $ 20.28 |
Granted (in dollars per share) | 22.56 | 29.85 | 22.19 | 27.71 |
Shares vested (in dollars per share) | 26.41 | 22.24 | 23.32 | 22.29 |
Shares forfeited (in dollars per share) | 21.43 | 23.35 | 21.83 | 20.45 |
Nonvested, end of period (in dollars per share) | $ 22.79 | $ 23.73 | $ 22.79 | $ 23.73 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator for basic earnings per share: | |||||
Net income | $ 8,071 | $ 6,811 | $ 2,604 | $ 21,890 | $ 8,417 |
Less: dividends and net income allocated to participating securities | (86) | (76) | (17) | (222) | (73) |
Net income available to common shareholders | $ 7,985 | $ 6,735 | $ 2,587 | $ 21,668 | $ 8,344 |
Denominator for basic earnings per share: | |||||
Basic weighted average common shares outstanding during the period (in shares) | 11,584,955 | 11,581,889 | 10,144,954 | 11,605,687 | 8,170,234 |
Denominator for diluted earnings per share: | |||||
Basic weighted average common shares outstanding during the period (in shares) | 11,584,955 | 11,581,889 | 10,144,954 | 11,605,687 | 8,170,234 |
Net effect of dilutive stock options and restricted stock (in shares) | 74,191 | 93,168 | 212,115 | 108,333 | 98,529 |
Diluted weighted average common shares (in shares) | 11,659,146 | 11,675,057 | 10,357,069 | 11,714,020 | 8,268,763 |
Net income per common share: | |||||
Basic (in usd per share) | $ 0.69 | $ 0.58 | $ 0.26 | $ 1.87 | $ 1.02 |
Diluted (in usd per share) | $ 0.68 | $ 0.58 | $ 0.25 | $ 1.85 | $ 1.01 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring and Nonrecurring Fair Value Measurements (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | $ 27,344 | $ 27,344 | $ 29,543 | ||
Equity securities | 2,681 | 2,681 | 2,538 | ||
Mortgage-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 7,978 | 7,978 | 8,844 | ||
Collateralized mortgage obligations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 10,306 | 10,306 | 11,461 | ||
SBA Pools | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 9,060 | 9,060 | 9,238 | ||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 27,344 | 27,344 | 29,543 | ||
Fair Value, Measurements, Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 27,344 | 27,344 | 29,543 | ||
Fair Value, Measurements, Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 7,978 | 7,978 | 8,844 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 7,978 | 7,978 | 8,844 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 10,306 | 10,306 | 11,461 | ||
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 10,306 | 10,306 | 11,461 | ||
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | SBA Pools | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 9,060 | 9,060 | 9,238 | ||
Fair Value, Measurements, Recurring | SBA Pools | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | SBA Pools | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 9,060 | 9,060 | 9,238 | ||
Fair Value, Measurements, Recurring | SBA Pools | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Securities available-for-sale | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mutual fund investment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 2,681 | 2,681 | 2,538 | ||
Fair Value, Measurements, Recurring | Mutual fund investment | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 2,681 | 2,681 | 2,538 | ||
Fair Value, Measurements, Recurring | Mutual fund investment | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mutual fund investment | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 0 | 0 | 0 | ||
Impaired Loans | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans subject to nonrecurring fair value measurement | 1,900 | 1,900 | $ 690 | ||
Total nonrecurring losses recognized for impaired loans | $ (624) | $ (22) | $ (624) | $ (590) | |
Measurement Input, Discount Rate | Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Discount rates used in nonrecurring fair value measurements | 0.08 | 0.08 | 0.08 | 0.08 | |
Measurement Input, Discount Rate | Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Discount rates used in nonrecurring fair value measurements | 0.10 | 0.10 | 0.10 | 0.10 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Securities available-for-sale | $ 27,344 | $ 29,543 |
Securities held-to-maturity | 5,110 | 5,095 |
Equity securities | 2,681 | 2,538 |
Loans held for sale | 12,600 | 29,200 |
Restricted stock investments, at cost | 6,100 | 6,100 |
Level 1 | Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 180,615 | 197,376 |
Equity securities | 2,681 | 2,538 |
Level 1 | Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 180,615 | 197,376 |
Equity securities | 2,681 | 2,538 |
Level 2 | Carrying Amount | ||
Financial Assets: | ||
Securities available-for-sale | 27,344 | 29,543 |
Securities held-to-maturity | 5,066 | 5,322 |
Loans held for sale | 11,906 | 28,022 |
Restricted stock investments, at cost | 12,970 | 12,855 |
Accrued interest receivable | 5,477 | 5,069 |
Financial Liabilities: | ||
Deposits | 1,339,538 | 1,252,339 |
Borrowings | 30,000 | 104,998 |
Senior secured notes | 13,100 | 8,450 |
Accrued interest payable | 339 | 366 |
Level 2 | Fair Value | ||
Financial Assets: | ||
Securities available-for-sale | 27,344 | 29,543 |
Securities held-to-maturity | 5,110 | 5,095 |
Loans held for sale | 12,594 | 29,238 |
Restricted stock investments, at cost | 12,970 | 12,855 |
Accrued interest receivable | 5,477 | 5,069 |
Financial Liabilities: | ||
Deposits | 1,339,611 | 1,250,555 |
Borrowings | 30,000 | 104,998 |
Senior secured notes | 13,100 | 8,450 |
Accrued interest payable | 339 | 366 |
Level 3 | Carrying Amount | ||
Financial Assets: | ||
Loan held for investment, net | 1,304,280 | 1,239,925 |
Servicing asset | 3,370 | 3,186 |
Level 3 | Fair Value | ||
Financial Assets: | ||
Loan held for investment, net | 1,341,668 | 1,265,013 |
Servicing asset | $ 3,345 | $ 3,295 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Noninterest income, in-scope: | $ 521 | $ 438 | $ 1,712 | $ 878 | |
Noninterest income, not in-scope: | 1,152 | 274 | 4,405 | 1,190 | |
Total noninterest income | 1,673 | $ 2,322 | 712 | 6,117 | 2,068 |
Service charges and fees on deposit accounts | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest income, in-scope: | 475 | $ 564 | 380 | 1,579 | 803 |
Other income | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest income, in-scope: | 46 | 58 | 133 | 75 | |
Noninterest income, not in-scope: | 368 | 87 | 827 | 146 | |
Gain on sale of loans | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest income, not in-scope: | 528 | 171 | 2,727 | 866 | |
Net servicing fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest income, not in-scope: | 242 | 39 | 763 | 318 | |
Change in fair value of equity securities | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest income, not in-scope: | $ 14 | $ (23) | $ 88 | $ (140) |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 03, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 |
Class of Stock [Line Items] | ||||||
Dividends declared (in usd per share) | $ 0.2 | $ 0.2 | $ 0.60 | $ 0.60 | ||
Cash dividends declared | $ 2,300 | $ 2,300 | $ 7,000 | $ 5,200 | ||
Repurchase of shares (in shares) | 1,200,000 | 87,500 | 416,270 | 452,553 | ||
Repurchase of shares, average price per share (in usd per share) | $ 21.84 | $ 21.60 | $ 21.62 | |||
Cost to repurchase stock | $ 1,911 | $ 8,991 | ||||
Remaining number of shares authorized for repurchase (in shares) | 747,447 | 747,447 | 747,447 |
Subsequent Events (Details)
Subsequent Events (Details) - Scenario, Forecast - Subsequent Event - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Minimum | ||
Subsequent Event [Line Items] | ||
After-tax impairment charge | $ 250 | $ 475 |
After-tax impairment charge (in usd per share) | $ 0.02 | $ 0.04 |
Maximum | ||
Subsequent Event [Line Items] | ||
After-tax impairment charge | $ 325 | $ 675 |
After-tax impairment charge (in usd per share) | $ 0.03 | $ 0.06 |