Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 10, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | OP Bancorp | ||
Entity Central Index Key | 0001722010 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Common Stock, Shares Outstanding | 15,258,546 | ||
Entity Public Float | $ 139,297,100 | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity File Number | 001-38437 | ||
Entity Tax Identification Number | 81-3114676 | ||
Entity Address, Address Line One | 1000 Wilshire Blvd | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90017 | ||
City Area Code | 213 | ||
Local Phone Number | 892-9999 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | CA | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | OPBK | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the 2020 Annual Meeting of Shareholders are incorporated by reference into Part III of this Report. The proxy statement will be filed with the Securities and Exchange Commission not later than 120 days after the Registrant’s fiscal year ended December 31, 2019. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and cash equivalents | $ 86,036 | $ 77,726 | |
Securities available for sale, at fair value | 56,549 | 55,336 | |
Other investments | 9,176 | 7,260 | |
Loans held for sale | 2,100 | 752 | |
Loans receivable, net of allowance of $10,050 at December 31, 2019 and $9,636 at December 31, 2018 | 980,088 | 865,423 | |
Premises and equipment, net | 5,226 | 4,633 | |
Accrued interest receivable | 3,166 | 3,068 | |
Servicing assets | 7,024 | 6,987 | |
Company owned life insurance (COLI) | 10,618 | 11,394 | |
Deferred tax assets | 3,189 | 3,672 | |
Operating right-of-use assets | [1] | 8,254 | |
Other assets | 8,094 | 7,935 | |
Total assets | 1,179,520 | 1,044,186 | |
Deposits: | |||
Noninterest bearing | 294,281 | 285,132 | |
Interest bearing: | |||
Savings | 4,753 | 3,421 | |
Money market and others | 291,865 | 261,349 | |
Time deposits greater than $250,000 | 213,345 | 164,281 | |
Other time deposits | 216,467 | 190,993 | |
Total deposits | 1,020,711 | 905,176 | |
Accrued interest payable | 2,686 | 1,715 | |
Operating lease liabilities | [1] | 10,126 | |
Other liabilities | 5,421 | 7,508 | |
Total liabilities | 1,038,944 | 914,399 | |
Shareholders’ equity | |||
Preferred stock – no par value; 10,000,000 shares authorized; no shares issued or outstanding at December 31, 2019 and December 31, 2018 | |||
Common stock – no par value; 50,000,000 shares authorized; 15,703,276 and 15,860,306 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively | 86,381 | 91,209 | |
Additional paid-in capital | 7,524 | 6,249 | |
Retained earnings | 46,483 | 32,877 | |
Accumulated other comprehensive income (loss) | 188 | (548) | |
Total shareholders’ equity | 140,576 | 129,787 | |
Total liabilities and shareholders' equity | $ 1,179,520 | $ 1,044,186 | |
[1] | The adoption of ASU 2016-02, Leases (Topic 842) in the first quarter of 2019 resulted in the recognition of right-of-use assets and lease liabilities on balance sheet. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Loans receivable, allowance | $ 10,050 | $ 9,636 |
Cash, FDIC insured amount | $ 250,000 | $ 250,000 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares, issued | 15,703,276 | 15,860,306 |
Common stock, shares, outstanding | 15,703,276 | 15,860,306 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income | |||
Interest and fees on loans | $ 55,720 | $ 48,108 | $ 39,112 |
Interest on securities available for sale | 1,353 | 985 | 676 |
Other interest income | 1,706 | 975 | 495 |
Total interest income | 58,779 | 50,068 | 40,283 |
Interest expense | |||
Interest on deposits | 14,507 | 8,964 | 4,470 |
Interest on borrowed funds | 147 | 103 | |
Total interest expense | 14,507 | 9,111 | 4,573 |
Net interest income | 44,272 | 40,957 | 35,710 |
Provision for loan losses | 1,102 | 1,267 | 1,311 |
Net interest income after provision for loan losses | 43,170 | 39,690 | 34,399 |
Noninterest income | |||
Service charges on deposits | 2,015 | 1,916 | 1,656 |
Loan servicing fees, net of amortization | 1,186 | 1,078 | 1,127 |
Gain on sale of loans | 5,905 | 4,880 | 4,939 |
Other income | 2,320 | 1,455 | 1,264 |
Total noninterest income | 11,426 | 9,329 | 8,986 |
Noninterest expense | |||
Salaries and employee benefits | 20,267 | 18,195 | 16,474 |
Occupancy and equipment | 4,648 | 4,111 | 3,918 |
Data processing and communication | 1,530 | 1,231 | 1,323 |
Professional fees | 980 | 921 | 589 |
FDIC insurance and regulatory assessments | 259 | 405 | 377 |
Promotion and advertising | 806 | 814 | 631 |
Directors’ fees | 908 | 851 | 796 |
Foundation donation and other contributions | 1,586 | 1,441 | 954 |
Other expenses | 1,536 | 1,593 | 1,195 |
Total noninterest expense | 32,520 | 29,562 | 26,257 |
Income before income taxes | 22,076 | 19,457 | 17,128 |
Provision for income taxes | 5,319 | 5,204 | 7,892 |
Net income | $ 16,757 | $ 14,253 | $ 9,236 |
Basic EPS | $ 1.04 | $ 0.92 | $ 0.68 |
Diluted EPS | $ 1.03 | $ 0.89 | $ 0.66 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 16,757 | $ 14,253 | $ 9,236 |
Other comprehensive income (loss): | |||
Change in unrealized income (loss) on securities available for sale | 1,045 | (175) | (238) |
Tax effect | (309) | (23) | 103 |
Total other comprehensive income (loss) | 736 | (198) | (135) |
Comprehensive income | $ 17,493 | $ 14,055 | $ 9,101 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2016 | $ 81,284 | $ 67,499 | $ 4,612 | $ 9,388 | $ (215) |
Beginning balance, shares at Dec. 31, 2016 | 12,896,548 | ||||
Net income | 9,236 | 9,236 | |||
Stock issued under stock-based compensation plans | 427 | $ 427 | |||
Stock issued under stock-based compensation plans, shares | 293,979 | ||||
Stock-based compensation | 668 | 668 | |||
Change in unrealized loss on securities available for sale net of reclassifications and tax effects | (135) | (135) | |||
Ending balance at Dec. 31, 2017 | 91,480 | $ 67,926 | 5,280 | 18,624 | (350) |
Ending balance, shares at Dec. 31, 2017 | 13,190,527 | ||||
Net income | 14,253 | 14,253 | |||
Stock issued under stock offering, net of expenses | 22,569 | $ 22,569 | |||
Stock issued under stock offering, net of expenses, shares | 2,300,000 | ||||
Stock issued under stock-based compensation plans | 714 | $ 714 | |||
Stock issued under stock-based compensation plans, shares | 369,779 | ||||
Stock-based compensation | 969 | 969 | |||
Change in unrealized loss on securities available for sale net of reclassifications and tax effects | (198) | (198) | |||
Ending balance at Dec. 31, 2018 | 129,787 | $ 91,209 | 6,249 | 32,877 | (548) |
Ending balance, shares at Dec. 31, 2018 | 15,860,306 | ||||
Net income | 16,757 | 16,757 | |||
Stock issued under stock-based compensation plans | 563 | $ 563 | |||
Stock issued under stock-based compensation plans, shares | 425,489 | ||||
Stock-based compensation | 1,275 | 1,275 | |||
Repurchase of common stock | (5,391) | $ (5,391) | |||
Repurchase of common stock, shares | (582,519) | ||||
Cash dividends declared | (3,151) | (3,151) | |||
Change in unrealized loss on securities available for sale net of reclassifications and tax effects | 736 | 736 | |||
Ending balance at Dec. 31, 2019 | $ 140,576 | $ 86,381 | $ 7,524 | $ 46,483 | $ 188 |
Ending balance, shares at Dec. 31, 2019 | 15,703,276 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities | ||||
Net income | $ 16,757 | $ 14,253 | $ 9,236 | |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||||
Provision for loan losses | 1,102 | 1,267 | 1,311 | |
Depreciation and amortization of premises and equipment | 1,146 | 1,043 | 1,008 | |
Amortization of net premiums on securities | 248 | 239 | 283 | |
Stock-based compensation | 1,275 | 969 | 668 | |
Gain on sales of loans | (5,905) | (4,880) | (4,939) | |
Earnings on company owned life insurance | (1,512) | (304) | (320) | |
Origination of loans held for sale | (89,778) | (74,246) | (83,423) | |
Proceeds from sales of loans held for sale | 92,213 | 91,856 | 72,346 | |
Amortization of servicing assets | 2,084 | 2,041 | 1,935 | |
Net change in fair value of equity investment with readily determinable fair value | (140) | 30 | ||
Net change in: | ||||
Accrued interest receivable | (98) | (605) | (462) | |
Deferred tax assets | (174) | 237 | 79 | |
Other assets | 189 | 695 | (2,898) | |
Accrued interest payable | 971 | 1,292 | 101 | |
Other liabilities | (215) | (3,282) | 2,928 | |
Net cash from operating activities | 18,163 | 30,605 | (2,147) | |
Cash flows from investing activities | ||||
Net change in loans receivable | (115,767) | (127,806) | (73,878) | |
Proceeds from matured, called, or paid-down securities available for sale | 14,549 | 6,562 | 6,169 | |
Proceeds from COLI | 2,288 | |||
Purchase of securities available for sale | (14,964) | (23,358) | (12,699) | |
Purchase of equity investments | (1,000) | |||
Purchase of premises and equipment, net | (1,739) | (1,195) | (421) | |
Purchase of other investments | (776) | (485) | (849) | |
Net cash from investing activities | (117,409) | (146,282) | (81,678) | |
Cash flows from financing activities | ||||
Net change in deposits | 115,535 | 131,870 | 111,522 | |
Cash received from stock option exercises | 563 | 714 | 427 | |
Borrowing (Repayment) of Federal Home Loan Bank advances | (25,000) | 15,000 | ||
Issuance of common stock, net of expenses | 22,569 | |||
Repurchase of common stock | (5,391) | |||
Cash dividend paid on common stock | (3,151) | |||
Net cash from financing activities | 107,556 | 130,153 | 126,949 | |
Net change in cash and cash equivalents | 8,310 | 14,476 | 43,124 | |
Cash and cash equivalents at beginning of period | 77,726 | 63,250 | 20,126 | |
Cash and cash equivalents at end of period | 86,036 | 77,726 | 63,250 | |
Supplemental cash flow information | ||||
Income taxes | 4,205 | 6,609 | 7,742 | |
Interest | 13,535 | 7,819 | $ 4,471 | |
Supplemental noncash disclosure: | ||||
The adoption of ASU 2016-02, leases (Topic 842) recognition right-of-use assets | [1] | 8,254 | ||
Transfer from securities available for sale to other investments | $ 2,486 | |||
ASU 2016-02 | ||||
Supplemental noncash disclosure: | ||||
The adoption of ASU 2016-02, leases (Topic 842) recognition right-of-use assets | $ 8,254 | |||
[1] | The adoption of ASU 2016-02, Leases (Topic 842) in the first quarter of 2019 resulted in the recognition of right-of-use assets and lease liabilities on balance sheet. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Business Description: OP Bancorp is a California corporation that was formed to acquire 100% of the voting equity of Open Bank (the “Bank”) and commenced operation as a bank holding company on June 1, 2016. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of OP Bancorp. OP Bancorp has no operations other than ownership of the Bank. The Bank is a California state-chartered and FDIC-insured financial institution, which began its operations on June 10, 2005. Headquartered in downtown Los Angeles, California, OP Bancorp operates primarily in the traditional banking business arena that includes accepting deposits and making loans and investments. OP Bancorp’s primary deposit products are demand and time deposits, and the primary lending products are commercial business loans to small to medium sized businesses. OP Bancorp is operating with nine full service branches. Initial Public Offering: On March 27, 2018, the Company completed its initial public offering of common stock, pursuant to which an aggregate of 2,300,000 shares of its common stock were sold at a public offering price of $11.00 per share, for aggregate net proceeds of approximately $22.6 million, after deducting underwriter discounts and commissions paid by it of approximately $1.7 million and other offering expenses of approximately $925,000. Basis of Presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Concentration of Risk: Most of the Company’s customers are located within Los Angeles County and the surrounding area. The concentration of loans originated in this area may subject the Company to the risk of adverse impacts of economic, regulatory or other developments that could occur in Southern California. The Company has significant concentration in commercial real estate loans. The Company obtains what it believes to be sufficient collateral to secure potential losses. The extent and value of the collateral obtained varies based upon the details underlying each loan agreement. Cash Flows: Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions and Federal Home Loan Bank advances transactions. Securities: Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement, and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Other investments: Other investments includes the followings : (i) Federal Home Loan Bank (“FHLB”) Stock - the Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; (ii) Pacific Coast Bankers Bank (“PCBB”) Stock - the Bank is a member of PCBB. PCBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; and (iii) the Company’s investment in a mutual fund to satisfy the Company’s requirements under the Community Reinvestment Act (“CRA”). CRA mutual fund is reported at fair value. Unrealized gains and losses on a CRA fund are recognized in other income in the Consolidated Statements of Income. Loans Held for Sale: Certain Small Business Administration (“SBA”) loans that may be sold prior to maturity are designated as held for sale at origination and are recorded at the lower of their cost or fair value less costs to sell, determined on an aggregate basis. A valuation allowance is established if the market value of such loans is lower than their cost, and operations are charged or credited for valuation adjustments. Origination fees on loans held for sale, net of certain costs of processing and closing the loans, are deferred until the time of sale and are included in the computation of the gain or loss from the sales of the related loans. A portion of the premium on sale of SBA loans is recognized as gains on sales of loans at the time of the sale. These loans are generally sold with servicing retained. Loans Receivable: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable, deferred loan fees and costs, and unearned income. The accrual of interest income on commercial real estate and other commercial and industrial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that in management’s judgment should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial real estate and construction loans. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Income recognition on impaired loans materially conforms to the method the Company uses for income recognition on nonaccrual loans. Allowance for impaired loans is determined based on the present value of the estimated cash flows or on the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measured fair value is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses, or alternatively, a specific allocation will be established. For consumer loans, management will generally charge off the balance if the loan is 90 days or more past due. The general component of the allowance covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent two years. For those portfolio segments that the Company does not have sufficient historical data available to track the loss migration, the loss factors are based on the actual loss history experienced by the Company over the most recent five years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified in the Company’s loan portfolio, and are also representative of the classes within the portfolio: commercial real estate, SBA loans—real estate, SBA loans—non-real estate, commercial and industrial, home mortgage, and consumer. The Company reviews the credit risk exposure of all its portfolio segments by internally assigned grades. The Company categorizes loans into risk grades based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For the home mortgage and consumer portfolio segments, the Company’s primary monitoring tool is reviewing past due listings to determine if the loans are performing. The determination of the allowance for loan losses is based on estimates that are particularly susceptible to changes in the economic environment and market conditions. Servicing Assets: When SBA loans are sold with servicing retained, servicing assets are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the assets as compared to their carrying amount. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in the valuation allowances are reported with other income on the income statement. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds, default rates, and losses. Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of servicing assets is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. Company Owned Life Insurance: The Company has purchased life insurance policies on certain key executives. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation. Equipment and furnishings are depreciated over 3 to 10 years, and leasehold improvements are amortized over the lesser of the terms of the respective leases or the estimated useful lives. The straight-line method of depreciation is used for financial reporting purposes. Repairs and maintenance are charged to operating expenses as incurred. Other Real Estate Owned, Net: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when the legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through the completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at the lower of their cost or fair value less estimated costs to sell. If their fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees based on the fair value of the awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of the grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Earnings per Common Share: Basic and diluted earnings per share is based on the two-class method prescribed in ASC Topic 260, Earnings Per Share (ASC 260). Stock options and restricted stock awards are considered outstanding for this calculation unless unearned. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock-based compensation plans. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. There were no interest or penalties recognized in the years ended December, 2019 or 2018. Comprehensive Income(Loss): Comprehensive income(loss) consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, which are also recognized as separate components of shareholders’ equity, net of tax. Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 13—Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. Operating Segments: While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Recent Accounting Pronouncements: In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842): Targeted Improvements he Company does not expect the adoption of this guidance will be material to its consolidated statement of income. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The objective of ASU 2016-13 is to provide financial statement users with decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 includes provisions that require financial assets measured at amortized cost (such as loans and held to maturity (HTM) debt securities) to be presented at the net amount expected to be collected. This will be accomplished through recognition of an estimate of all current expected credit losses. The estimate will include forecasted information for the timeframe that an entity is able to develop reasonable and supportable forecasts. This is a change from the current practice of recognizing incurred losses based on the probable initial recognition threshold under current GAAP. In addition, credit losses on available for sale (AFS) debt securities will be recorded through an allowance for credit losses rather than as a write-down. Under ASU 2016-13, an entity will be able to record reversals of credit losses in current period income when the estimate of credit losses declines, whereas current GAAP prohibits reflecting those improvements in current period earnings. In July 2019, FASB proposed the effective date delay to January 2020 for SEC filers, excluding smaller reporting companies (“SRCs”) and emerging growth companies (“EGCs”), and January 2023 for all other entities including SRCs and EGCs, and on October 2019, FASB voted to approve the proposed delay. The Compny expects the adoption date would be January 2023. ASU 2016-13 will be applied through a cumulative effect adjustment to retained earnings (modified-retrospective approach), except for debt securities for which an other-than-temporary impairment had been recognized before the effective date. A prospective transition approach is required for these debt securities. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures, including software solutions, data requirements and loss estimation methodologies. The company has engaged a third party advisor to develop a new expected loss model. While the effects cannot yet be quantified, the Company expects ASU 2016-13 to add complexity and costs to its current credit loss evaluation process. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 2 . Securities The following table summarizes the amortized cost, fair value, and the corresponding amounts of gross unrealized gains and losses for available for sale securities at December 31, 2019 and December 31, 2018: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) As of December 31, 2019: Available for sale: U.S. Government sponsored agency securities $ 5,000 $ 2 $ (1 ) $ 5,001 Mortgage-backed securities: residential 15,559 94 (12 ) 15,641 Collateralized mortgage obligations: residential 35,723 243 (59 ) 35,907 Total available for sale $ 56,282 $ 339 $ (72 ) $ 56,549 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) As of December 31, 2018: Available for sale: U.S. Government sponsored agency securities $ 6,994 $ — $ (88 ) $ 6,906 Mortgage-backed securities: residential 14,465 — (336 ) 14,129 Collateralized mortgage obligations: residential 34,655 156 (510 ) 34,301 Total available for sale $ 56,114 $ 156 $ (934 ) $ 55,336 There were no sales of securities available for sale during the years ended December 31, 2019 and 2018. The amortized cost and estimated fair value of securities available for sale at December 31, 2019, by contractual maturity, are shown below. Securities without a contractual maturity are shown separately. Amortized Cost Fair Value (Dollars in thousands) As of December 31, 2019: Available for sale: Within one year $ 4,000 $ 4,000 One to five years 1,000 1,001 Mortgage-backed securities: residential 15,559 15,641 Collateralized mortgage obligations: residential 35,723 35,907 Total available for sale $ 56,282 $ 56,549 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The following table summarizes securities with unrealized losses at December 31, 2019 and December 31, 2018, aggregated by length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) As of December 31, 2019: Available for sale: U.S. Government sponsored agency securities $ — $ — $ 1,999 $ (1 ) $ 1,999 $ (1 ) Mortgage-backed securities: residential — — 3,254 (12 ) 3,254 (12 ) Collateralized mortgage obligations: residential 8,878 (29 ) 3,658 (30 ) 12,536 (59 ) Total available for sale $ 8,878 $ (29 ) $ 8,911 $ (43 ) $ 17,789 $ (72 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) As of December 31, 2018: Available for sale: U.S. Government sponsored agency securities $ — $ — $ 6,906 $ (88 ) $ 6,906 $ (88 ) Mortgage-backed securities: residential 3,209 (23 ) 10,920 (313 ) 14,129 (336 ) Collateralized mortgage obligations: residential 3,348 (26 ) 14,544 (484 ) 17,892 (510 ) Total available for sale $ 6,557 $ (49 ) $ 32,370 $ (885 ) $ 38,927 $ (934 ) The Company believes that the unrealized losses are temporary, arising mainly from fluctuations in interest rates and do not reflect a deterioration of credit quality of the issuers. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The fair value is expected to recover as the securities approach maturity. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery. There were no securities pledged as collateral at December 31, 2019 or December 31, 2018. Other investments at December 31, 2019 and December 31, 2018, consisted of the following: December 31, 2019 December 31, 2018 (Dollars in thousands) FHLB stock $ 5,358 $ 4,582 PCBB stock 190 190 Mutual fund - CRA qualified 3,628 2,488 Total other investments $ 9,176 $ 7,260 Effective January 2018, the Company adopted ASU 2016-01 and |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | Note 3. Loans The composition of the loan portfolio was as follows at December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 (Dollars in thousands) Real estate: Commercial real estate $ 630,668 $ 503,834 SBA loans—real estate 122,373 117,834 Total real estate 753,041 621,668 SBA loans—non-real estate 9,895 9,541 Commercial and industrial 103,852 113,975 Home mortgage 120,686 127,298 Consumer 2,664 2,577 Gross loans receivable 990,138 875,059 Allowance for loan losses (10,050 ) (9,636 ) Loans receivable, net $ 980,088 $ 865,423 No loans were outstanding to related parties at December 31, 2019 or December 31, 2018. The activity in the allowance for loan losses for the years ended December 31, 2019, 2018, and 2017 was as follows: SBA Commercial Real Estate SBA Loans Real Estate Loans Non- Real Estate Commercial and Industrial Home Mortgage Consumer Total (Dollars in thousands) Balance at January 1, 2017 $ 4,217 $ 893 $ 59 $ 1,322 $ 1,364 $ 55 $ 7,910 Provision for loan losses 584 189 634 (57 ) 44 (83 ) 1,311 Charge-offs — — (169 ) — — — (169 ) Recoveries — — 14 — — 73 87 Balance at December 31, 2017 $ 4,801 $ 1,082 $ 538 $ 1,265 $ 1,408 $ 45 $ 9,139 Provision for loan losses 4 (188 ) 103 1,115 245 (12 ) 1,267 Charge-offs — — (153 ) (634 ) — — (787 ) Recoveries — — 17 — — — 17 Balance at December 31, 2018 $ 4,805 $ 894 $ 505 $ 1,746 $ 1,653 $ 33 $ 9,636 Provision for loan losses 1,195 734 (384 ) (457 ) 14 — 1,102 Charge-offs — (689 ) — — — — (689 ) Recoveries — — — — — 1 1 Balance at December 31, 2019 $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 The following table presents the balance in the allowance for loan losses and the recorded investment in loans (including accrued interest receivable of $2.9 million and $2.8 million as of December 31, 2019 and 2018, respectively) by portfolio segment at December 31, 2019 and December 31, 2018: Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total (Dollars in thousands) As of December 31, 2019: Allowance for loan losses: Commercial real estate $ — $ 6,000 $ 6,000 SBA loans—real estate — 939 939 SBA loans—non-real estate — 121 121 Commercial and industrial 333 956 1,289 Home mortgage — 1,667 1,667 Consumer — 34 34 Total $ 333 $ 9,717 $ 10,050 Loans: Commercial real estate $ — $ 632,205 $ 632,205 SBA loans—real estate 484 122,438 122,922 SBA loans—non-real estate 33 9,921 9,954 Commercial and industrial 333 103,774 104,107 Home mortgage — 121,161 121,161 Consumer — 2,671 2,671 Total $ 850 $ 992,170 $ 993,020 As of December 31, 2018: Allowance for loan losses: Commercial real estate $ — $ 4,805 $ 4,805 SBA loans—real estate — 894 894 SBA loans—non-real estate 362 143 505 Commercial and industrial 836 910 1,746 Home mortgage — 1,653 1,653 Consumer — 33 33 Total $ 1,198 $ 8,438 $ 9,636 Loans: Commercial real estate $ — $ 505,229 $ 505,229 SBA loans—real estate 834 117,159 117,993 SBA loans—non-real estate 57 9,875 9,932 Commercial and industrial 1,516 112,781 114,297 Home mortgage — 127,806 127,806 Consumer — 2,586 2,586 Total $ 2,407 $ 875,436 $ 877,843 The following table presents information related to impaired loans by class of loans as of and for the years ended December 31, 2019, 2018 and 2017. The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans is not considered to be material. The difference between interest income recognized and cash basis interest recognized was immaterial. Average Interest Recorded Allowance Recorded Income Investment Allocated Investment Recognized (Dollars in thousands) 2019 With no related allowance recorded: SBA loans—real estate $ 484 $ — $ 503 $ — SBA loans—non-real estate 33 — 45 — With an allowance recorded: Commercial and industrial 333 333 338 20 Total $ 850 $ 333 $ 886 $ 20 2018 With no related allowance recorded: SBA loans—real estate $ 834 $ — $ 473 $ — SBA loans—non-real estate 57 — — — Commercial and industrial 680 — 715 — With an allowance recorded: SBA loans—non-real estate — 362 14 — Commercial and industrial 836 836 841 49 Total $ 2,407 $ 1,198 $ 2,043 $ 49 2017 With no related allowance recorded: Home mortgage $ 241 $ — $ 242 $ — Consumer 21 — 31 — With an allowance recorded: Commercial and industrial 354 354 361 17 Total $ 616 $ 354 $ 634 $ 17 The following table presents the recorded investment in nonaccrual loans and loans past due greater than 90 days still accruing interest by class of loans at December 31, 2019 and December 31, 2018: Nonaccrual Loans >90 Days Past Due & Still Accruing Total (Dollars in thousands) As of December 31, 2019: SBA loans—real estate $ 484 $ — $ 484 SBA loans—non-real estate 33 — 33 Home mortgage 698 — 698 Total $ 1,215 $ — $ 1,215 As of December 31, 2018: SBA loans—real estate $ 834 $ — $ 834 SBA loans—non-real estate 57 — 57 Commercial and industrial 680 — 680 Total $ 1,571 $ — $ 1,571 Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table represents the aging of the recorded investment in past due loans at December 31, 2019 and December 31, 2018: 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Loans Not Past Due Total (Dollars in thousands) As of December 31, 2019: Commercial real estate $ — $ — $ — $ — $ 632,205 $ 632,205 SBA—real estate 1,552 — 484 2,036 120,886 122,922 SBA—non-real estate 3 126 33 162 9,792 9,954 Commercial and industrial 364 — — 364 103,743 104,107 Home mortgage 1,980 — 454 2,434 118,727 121,161 Consumer — — — — 2,671 2,671 $ 3,899 $ 126 $ 971 $ 4,996 $ 988,024 $ 993,020 As of December 31, 2018: Commercial real estate $ — $ — $ — $ — $ 505,229 $ 505,229 SBA—real estate — — 311 311 117,682 117,993 SBA—non-real estate — — — — 9,932 9,932 Commercial and industrial — — 680 680 113,617 114,297 Home mortgage 449 — — 449 127,357 127,806 Consumer — — — — 2,586 2,586 $ 449 $ — $ 991 $ 1,440 $ 876,403 $ 877,843 Troubled Debt Restructurings Modifications made were primarily extensions of existing payment modifications on loans previously identified as troubled debt restructurings. There were no new loans identified as trouble debt restructurings during the years ended December 31, 2019, 2018, or 2017. There were no payment defaults during the years ended December 31, 2019, 2018, or 2017 of loans that had been modified as troubled debt restructurings within the previous twelve months. Credit Quality Indicators Special Mention—Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard—Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. As of December 31, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Pass Special Mention Substandard Doubtful Total (Dollars in thousands) As of December 31, 2019: Commercial real estate $ 632,205 $ — $ — $ — $ 632,205 SBA loans—real estate 120,116 770 2,036 — 122,922 SBA loans—non-real estate 9,781 140 33 — 9,954 Commercial and industrial 98,509 4,901 697 — 104,107 Home mortgage 120,463 — 698 — 121,161 Consumer 2,671 — — — 2,671 $ 983,745 $ 5,811 $ 3,464 (1) $ — $ 993,020 As of December 31, 2018: Commercial real estate $ 505,229 $ — $ — $ — $ 505,229 SBA loans—real estate 115,993 — 2,000 — 117,993 SBA loans—non-real estate 9,859 16 57 — 9,932 Commercial and industrial 112,781 — 1,516 — 114,297 Home mortgage 127,806 — — — 127,806 Consumer 2,586 — — — 2,586 $ 874,254 $ 16 $ 3,573 (1) $ — $ 877,843 (1) Substandard loans include SBA guaranteed portion. Substandard loans, net of guaranteed are $3.0 million and $3.1 million, respectively |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 5. Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) , using the optional transition method permitted by ASU No. 2018-11, Leases (Topic 842): Targeted Improvements . See Note 1 “Summary of Significant Accounting Policies” for additional information regarding adoption of ASU No. 2016-02. The Company’s operating leases are real estate leases which are comprised of its headquarters and office facilities from nonaffiliated parties with remaining lease terms ranging from 1 to 10 years as of December 31, 2019. Certain lease arrangements contain extension option which are typically around 5 years. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. At December 31, 2019, operating right-of-use (“ROU”) assets and related liabilities were $8.3 million and $10.1 million, respectively. Short-term operating leases, which are defined as leases with term of twelve months or less, were not recognized as ROU assets with related lease liabilities as permitted under ASU No. 2016-02. The lease payments on short-term operating leases are immaterial. The Company did not have any finance leases at December 31, 2019. Operating lease ROU assets represent the Company’s right to use the underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at least commencement based on the present value of the remaining lease payments using the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in occupancy expense in the consolidated statements of income. The Company’s occupancy expense also includes variable lease costs which is comprised of the Company's share of actual costs for utilities, common area maintenance, property taxes, and insurance that are not included in lease liabilities and are expensed as incurred. Variable lease costs can also include rent escalations based on changes to indices, such as the Consumer Price Index, where the Company estimates future rent increases and records the actual difference to variable costs. The table below summarized the Company’s total lease cost: (Dollars in thousands) Year Ended December 31, 2019 Operating lease cost $ 1,731 Variable lease cost 728 Total lease cost $ 2,459 The table below summarizes other information related to the Company’s operating leases: (Dollars in thousands) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,902 Weighted average remaining lease term - operating leases 5.7 years Weighted average discount rate - operating leases 2.98 % Rent expense for the years ended December 31, 2019, 2018 and 2017 was $2.5 million, $2.1 million, and $2.0 million, respectively. The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the consolidated balance sheet as of December 31, 2019: (Dollars in thousands) December 31, 2019 2020 $ 2,001 2021 2,032 2022 2,028 2023 1,816 2024 1,702 Thereafter 1,641 Total lease payments 11,220 Discount to present value (1,094 ) Total lease liability $ 10,126 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 4. Premises and equipment The Company’s premises and equipment consisted of the following at December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 (Dollars in thousands) Leasehold improvements $ 6,571 $ 5,518 Furniture and fixtures 3,174 2,791 Equipment and others 2,414 2,111 Total cost 12,159 10,420 Accumulated depreciation (6,933 ) (5,787 ) Net book value $ 5,226 $ 4,633 Total depreciation expense included in occupancy and equipment expenses was $1.1 million for the year ended December 31, 2019 and $1.0 million for the years ended December 31, 2018, and 2017. |
Servicing Assets
Servicing Assets | 12 Months Ended |
Dec. 31, 2019 | |
Servicing Asset [Abstract] | |
Servicing Assets | Note 5. Servicing Assets Activity for loan servicing assets during the years ended December 31, 2019, 2018, and 2017 is as follows: Year Ended 2019 2018 2017 (Dollars in thousands) Beginning balance $ 6,987 $ 6,771 $ 6,783 Additions 2,121 2,257 1,923 Amortized to expense (2,084 ) (2,041 ) (1,935 ) Ending balance $ 7,024 $ 6,987 $ 6,771 There was no valuation allowance recorded against the carrying value of the servicing assets as of December 31, 2019, 2018, or 2017. The fair value of the servicing assets was $8.2 million at December 31, 2019, which was determined using discount rates ranging from 1.75% to 10.00% and prepayment speeds ranging from 14.0% to 15.3%, depending on the stratification of the specific assets. The fair value of the servicing assets was $8.5 million at December 31, 2018, which was determined using discount rates ranging from 1.81% to 11.08% and prepayment speeds ranging from 11.2% to 13.0%, depending on the stratification of the specific assets. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Deposits | Note 6. Deposits Time deposits that exceed the FDIC insurance limit of $250,000 at December 31, 2019 and December 31, 2018 were $213.3 million and $164.3 million, respectively. The scheduled maturities of time deposits were as follows at December 31, 2019: December 31, 2019 (In thousands) 2020 $ 417,316 2021 10,246 2022 1,242 2023 765 2024 243 Total $ 429,812 Deposits from principal officers, directors, and their affiliates at December 31, 2019 and December 31, 2018 were $1.6 million and $778,000, respectively. |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Note 7. Borrowing arrangements As of December 31, 2019, the Company had no The Company had available borrowings from the following institutions as of December 31, 2019: December 31, 2019 (In thousands) Federal Home Loan Bank—San Francisco $ 238,906 Federal Reserve Bank 124,027 Pacific Coast Bankers Bank 8,000 Zions Bank 5,500 Total $ 376,433 The Company has pledged approximately $832.8 million of loans as collateral for these lines of credit as of December 31, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes Income tax expense/(benefit) was as follows: Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 (Dollars in thousands) Current federal expense $ 3,162 $ 3,458 $ 5,894 Current state expense 1,983 1,983 2,002 5,145 5,441 7,896 Deferred federal expense 228 (131 ) (1,061 ) Deferred state expense (54 ) (106 ) (279 ) Deferred tax asset revaluation — — 1,336 174 (237 ) (4 ) Total tax expense $ 5,319 $ 5,204 $ 7,892 Effective tax rates differ from the federal statutory rates of 21% for 2019 and 2018, and 35% for 2017 applied to income before taxes due to the following: Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 (Dollars in thousands) Federal statutory rate times financial statement income $ 4,636 $ 4,086 $ 5,995 Effect of: Meals and entertainment 39 39 45 State income taxes, net of federal tax benefit 1,608 1,494 1,096 Stock option expense and related excess tax benefits (419 ) (400 ) (301 ) Company owned life insurance (314 ) (64 ) (112 ) Other, net (231 ) 49 (167 ) Deferred tax asset revaluation — — 1,336 683 1,118 1,897 Total tax expense $ 5,319 $ 5,204 $ 7,892 On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law, which among other items reduces the federal corporate tax rate to 21% from 35%, effective January 1, 2018. U.S. generally accepted accounting principles requires companies to revalue certain tax-related assets as of the date of enactment of the new legislation with resulting tax effects accounted for in the reporting period of enactment. As a result, the value of the Company’s deferred tax asset was reduced by $1.3 million, and such $1.3 million was recorded as tax expense for the year ended December 31, 2017. The net deferred tax asset included in the statement of financial position includes the following components at the dates indicated below: December 31, 2019 December 31, 2018 (Dollars in thousands) Deferred tax assets: Pre-opening expense $ 7 $ 25 Organizational costs 27 30 Allowance for loan losses 2,971 2,849 Loans held for sale 52 16 Stock-based compensation 464 345 Accrued compensation 138 163 Lease liability 2,994 — Accrued rent — 553 State taxes 456 414 Net unrealized loss on securities available for sale — 230 Nonaccrual loan interest income 27 55 Other 24 44 Total deferred tax assets 7,160 4,724 Deferred tax liabilities: Loan origination costs (752 ) (590 ) Depreciation (663 ) (394 ) Right of use asset (2,441 ) — Net unrealized gain on securities available for sale (79 ) — Other (36 ) (68 ) Total deferred tax liabilities (3,971 ) (1,052 ) Net deferred tax asset $ 3,189 $ 3,672 A valuation allowance for deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and tax planning strategies which will create taxable income during the periods in which those temporary differences become deductible. At December 31, 2019, management reevaluated all positive and negative evidence that existed and concluded all deferred tax assets are realizable. Therefore, no valuation allowance is necessary. The Company is subject to U.S. Federal income tax as well as various state taxing jurisdictions. The Company is no longer subject to examination by Federal taxing authorities for tax years prior to 2016 and for state taxing authorities for tax years prior to 2015. There were no significant unrealized tax benefits recorded as of December 31, 2019, 2018 and 2017, and the Company does not expect any significant increase in unrealized tax benefits in the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Off-Balance-Sheet Credit Risk The Company evaluates the creditworthiness of each customer. Collateral, if deemed necessary by the Company upon the extension of credit, is obtained based on management’s evaluation of the borrower. Collateral for commercial and industrial loans may vary, but may include securities, accounts receivable, inventory, property, plant and equipment, and income producing commercial or other properties. The following table shows the distribution of undisbursed loan commitments as of the dates indicated: December 31, 2019 December 31, 2018 (Dollars in thousands) Commitments to extend credit $ 66,153 $ 60,789 Standby letter of credit 7,377 1,790 Commercial letter of credit 1,111 1,209 Total undisbursed loan commitments $ 74,641 $ 63,788 The majority of these off-balance sheet commitments have a variable interest rate. Management does not anticipate any material losses as a result of these transactions. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Note 10. Stock-based Compensation The Company has two stock-based compensation plans currently in effect as of December 31, 2019, as described further below. Total compensation cost that has been charged against earnings for these plans in 2019, 2018, and 2017 was $1,275,000, $969,000, and $668,000. 2005 Plan The exercise prices of the options may not be less than 100 percent of the fair value of the Company’s common stock at the date of grant. The options, when granted, vest either immediately or ratably over five years from the date of the grant and expire after ten years if not exercised. The 2005 plan was expired in 2015 and no shares are available for grant. A summary of the transactions under the 2005 Plan for the year ended December 31, 2019 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except share data) Outstanding, as of January 1, 2019 250,000 $ 4.00 Options granted — — Options exercised (95,000 ) 2.20 Options forfeited — — Options expired — — Outstanding, as of December 31, 2019 155,000 4.70 $ 879 Fully vested and expected to vest 155,000 4.70 $ 879 Vested 155,000 $ 4.70 $ 879 Information related to the 2005 Plan for the periods indicated follows: Year Ended December 31, 2019 2018 2017 Intrinsic value of options exercised $ 592 $ 634 $ 175 Cash received from option exercises 178 195 142 Tax benefit realized from option exercised — — — The weighted average remaining contractual term of stock options outstanding under the 2005 Plan at December 31, 2019 was 2.52 years. The weighted average remaining contractual term of stock options that were exercisable at December 31, 2019 was 2.5 years. All of the stock options that are outstanding under the 2005 Plan were fully vested as of December 31, 2019. 2010 Plan The exercise prices of stock options granted under the plan may not be less than 100 percent of the fair value of the Company’s stock at the date of grant. The options, when granted, vest ratably over five years from the date of the grant and expire after ten years if not exercised. There were no stock options granted under the 2010 Plan during 2019 or 2018. Restricted stock awards issued under the 2010 Plan may or may not be subject to vesting provisions. Awards which were granted in 2019 and 2018 vest at the end of three years or five years from the date of the grant. Owners of the restricted stock awards shall have all of the rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date. A summary of the transactions under the 2010 Plan for the year ended December 31, 2019 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except share data) Outstanding, as of January 1, 2019 620,000 $ 4.57 Options granted — — Options exercised (255,000 ) 1.51 Options forfeited — — Options expired — — Outstanding, as of December 31, 2019 365,000 5.78 $ 1,677 Fully vested and expected to vest 350,000 5.68 $ 1,641 Vested 305,000 $ 5.34 $ 1,535 Information related to stock options exercised under the 2010 Plan for the periods indicated follows: Year Ended December 31, 2019 2018 2017 Intrinsic value of options exercised $ 1,728 $ 1,338 $ 497 Cash received from option exercises 385 519 285 Tax benefit realized from option exercised 453 286 209 The weighted average remaining contractual term of stock options outstanding under the 2010 Plan at December 31, 2019 was 2.76 years. The weighted average remaining contractual term of stock options that were exercisable at December 31, 2019 was 2.46 years. A summary of the changes in the Company’s non-vested restricted stock awards under the 2010 Plan for the year ended December 31, 2019 is as follows: Shares Issued Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (Dollars in thousands, except share data) Non-vested, as of January 1, 2019 436,000 $ 8.19 Awards granted 18,000 9.43 Awards vested (141,500 ) 5.91 Awards forfeited (18,000 ) 10.78 Non-vested, as of December 31, 2019 294,500 $ 9.20 $ 3,054 Information related to non-vested restricted stock awards under the 2010 Plan for the periods indicated follows: Year Ended December 31, 2019 2018 2017 Tax benefit realized from awards vested $ 144 $ 291 $ 615 There were 90,427 shares available for grant under the 2010 Plan as of December 31, 2019 (in either stock options or restricted stock awards). As of December 31, 2019, the Company had approximately $1.8 million of unrecognized compensation cost related to unvested stock options and restricted stock awards under the 2010 Plan. The Company expects to recognize these costs over a weighted average period of 1.32 years. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 11. Employee Benefit Plan The Company established a 401(k) profit sharing plan (the “401(k) Plan”) which is open to all eligible employees who are at least 21 years old and have completed 90 days of service. Each employee is allowed to contribute to the 401(k) Plan up to the maximum percentage allowable, not to exceed the limits of applicable IRS Code Sections. Each year, the Company may, in its discretion, make matching contributions to the 401(k) Plan. Total employer contributions to the 401(k) Plan amounted to $602,000, $481,000, and $420,000 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 12. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, letters of credit, and investment securities, as well as revenue related to mortgage servicing activities and revenue on company owned life insurance, as these activities are subject to other GAAP discussed elsewhere within the disclosures. Descriptions of the Company’s revenue-generating activities that are within the scope of ASC 606, which are presented in the Company’s income statements as components of noninterest income are as follows: Service charges on deposits Wire transfer fee income: Other revenue streams that are recorded in other income in noninterest income include revenue generated from letters of credit and income on company owned life insurance. These revenue streams are either not material or out of scope of ASC 606. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 13. Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Securities Available for Sale Impaired Loans Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Assets and liabilities measured at fair value on a recurring basis at December 31, 2019 and December 31, 2018 are summarized below: Fair Value Measuring Using Quoted Significant Other Significant Prices in Observable Unobservable Total Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) As of December 31, 2019: U.S. Government sponsored agency securities $ 5,001 $ — $ 5,001 $ — Mortgage-backed securities - residential 15,641 — 15,641 — Collateralized mortgage obligations 35,907 — 35,907 — Other investments: Mutual fund - CRA qualified 3,628 3,628 — — As of December 31, 2018: U.S. Government sponsored agency securities $ 6,906 $ — $ 6,906 $ — Mortgage-backed securities - residential 14,129 — 14,129 — Collateralized mortgage obligations 34,301 — 34,301 — Other investments: Mutual fund - CRA qualified 2,488 2,488 — — There were no transfers of assets or liabilities between the Level 1 and Level 2 classifications during 2019 or 2018. There were no assets or liabilities measured at fair value on a non-recurring basis at December 31, 2019 or 2018. Financial Instruments Carrying Amount Level 1 Level 2 Level 3 Value (Dollars in thousands) As of December 31, 2019: Financial Assets: Cash and cash equivalents $ 86,036 $ 86,036 $ — $ — $ 86,036 Loans held for sale 2,100 — 2,100 — 2,100 Loans receivable, net 980,088 — — 1,009,490 1,009,490 Accrued interest receivable 3,166 41 243 2,882 3,166 Other investments: FHLB and PCBB stock 5,548 N/A N/A N/A N/A Financial Liabilities: Deposit $ 1,020,711 $ — $ 1,021,571 $ — $ 1,021,571 Accrued interest payable 2,686 — 2,686 — 2,686 The carrying amounts and estimated fair values of financial instruments not carried at fair value at December 31, 2018 are as follows: Carrying Amount Level 1 Level 2 Level 3 Value (Dollars in thousands) As of December 31, 2018: Financial Assets: Cash and cash equivalents $ 77,726 $ 77,726 $ — $ — $ 77,726 Loans held for sale 752 — 806 — 806 Loans receivable, net 865,423 — — 862,394 862,394 Accrued interest receivable 3,068 44 240 2,784 3,068 Other investments: FHLB and PCBB stock 4,772 N/A N/A N/A N/A Financial Liabilities: Deposit $ 905,176 $ — $ 904,466 $ — $ 904,466 Accrued interest payable 1,715 — 1,715 — 1,715 The methods and assumptions, not previously presented, used to estimate fair value are described as follows: (a) Cash and Cash equivalents The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. (b) Loans Held for Sale The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. (c) Loans Receivable, Net Fair values of loans, excluding loans held for sale, are based on the exit price notion set forth by ASU 2016-01 effective January 1, 2018 and estimated using discounted cash flow analyses. The estimation of fair values of loans results in a Level 3 classification as it requires various assumptions and considerable judgement to incorporate factors relevant when selling loans to market participants, such as funding costs, return requirements of likely buyers and performance expectations of the loans given the current market environment and quality of loans. (d) Other Investments Fair value of CRA qualified mutual fund is readily determinable using quoted prices and is classified as Level 1. It is not practical to determine the fair value of FHLB and PCBB stock due to restrictions placed on their transferability. (e) Deposits The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. The carrying amounts of variable rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date resulting in a Level 2 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. (f) Federal Home Loan Bank Advances The fair values of Federal Home Loan Bank Advances are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements, resulting in a Level 2 classification. (g) Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value and are classified within the same fair value hierarchy level as the related asset or liability. (h) Off-balance Sheet Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Matters | Note 14. Regulatory Capital Matters Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffers for 2018 and 2019 are 1.875% and 2.50%, respectively. Management believes that as of December 31, 2019 and 2018, the Bank met all capital adequacy requirements to which they are subject to. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums. Unrealized gain or loss on securities available-for-sale is not included in computing regulatory capital. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2019: Total capital (to risk-weighted assets) Consolidated $ 150,092 15.18 % N/A N/A N/A N/A Bank 147,820 14.96 % 79,069 8.00 % 98,836 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 139,975 14.16 % N/A N/A N/A N/A Bank 137,703 13.93 % 59,301 6.00 % 79,069 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 139,975 14.16 % N/A N/A N/A N/A Bank 137,703 13.93 % 44,476 4.50 % 64,243 6.50 % Tier 1 capital (to average assets) Consolidated 139,975 12.14 % N/A N/A N/A N/A Bank 137,703 11.95 % 46,103 4.00 % 57,629 5.00 % Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2018: Total capital (to risk-weighted assets) Consolidated $ 139,593 16.26 % N/A N/A N/A N/A Bank 139,538 16.25 % 68,686 8.00 % 85,857 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 129,893 15.13 % N/A N/A N/A N/A Bank 129,838 15.12 % 51,514 6.00 % 68,686 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 129,893 15.13 % N/A N/A N/A N/A Bank 129,838 15.12 % 38,636 4.50 % 55,807 6.50 % Tier 1 capital (to average assets) Consolidated 129,893 12.88 % N/A N/A N/A N/A Bank 129,838 12.87 % 40,346 4.00 % 50,432 5.00 % |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15. Earnings per Share The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shares are allocated between common shares and participating securities. The Company’s restricted stock awards are considered participating securities as the unvested awards have non-forfeitable rights to dividends, paid or unpaid, on unvested awards. The factors used in the earnings per share computation follow: Year Ended December 31, (Dollars in thousands, except share data) 2019 2018 2017 Basic Net income $ 16,757 $ 14,253 $ 9,236 Undistributed earnings allocated to participating securities (383 ) (422 ) (366 ) Net income allocated to common shares 16,374 13,831 8,870 Weighted average common shares outstanding 15,741,926 15,104,939 13,063,344 Basic earnings per common share $ 1.04 $ 0.92 $ 0.68 Diluted Net income allocated to common shares $ 16,374 $ 13,831 $ 8,870 Weighted average common shares outstanding for basic earnings per common share 15,741,926 15,104,939 13,063,344 Add: Dilutive effects of assumed exercises of stock options 193,388 446,124 422,447 Average shares and dilutive potential common shares 15,935,314 15,551,063 13,485,791 Diluted earnings per common share $ 1.03 $ 0.89 $ 0.66 No share |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | Note 16. Condensed Financial Statements of Parent Company The following presents the unconsolidated condensed financial statements of only the parent company, OP Bancorp, as of December 31, 2019 and 2018: CONDENSED BALANCE SHEETS December 31, 2019 2018 (Dollars in thousands) ASSETS Investment in bank subsidiary $ 138,304 $ 129,732 Cash and cash equivalents 2,219 — Other assets 141 55 Total assets $ 140,664 $ 129,787 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable and other liabilities 88 — Shareholders’ equity 140,576 129,787 Total liabilities and shareholders' equity $ 140,664 $ 129,787 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Other expense $ 1,011 $ 134 $ 38 Income before income tax and undistributed subsidiary income (1,011 ) (134 ) (38 ) Income tax benefit (288 ) (40 ) (16 ) Equity in undistributed subsidiary income 17,480 14,347 9,258 Net income 16,757 14,253 9,236 Other comprehensive income (loss), net of tax 736 (198 ) (135 ) Net income $ 17,493 $ 14,055 $ 9,101 CONDENSED STATEMENT OF CASH FLOWS Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Cash flows from operating activities Net income $ 16,757 $ 14,253 $ 9,236 Adjustments: Equity in undistributed subsidiary income (17,480 ) (14,347 ) (9,258 ) Change in other assets 6 94 22 Change in accounts payable and other liabilities 88 — — Net cash from operating activities (629 ) — — Cash flows from investing activities Net cash from investing activities — — — Cash flows from financing activities Repurchase of common stock (5,391 ) — — Cash dividend paid on common stock (3,151 ) — — Proceeds from subsidiaries 11,390 — — Net cash from financing activities 2,848 — — Net change in cash and cash equivalents 2,219 — — Cash and cash equivalents at beginning of year — — — Cash and cash equivalents at end of year $ 2,219 $ — $ — |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 17. QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized unaudited quarterly financial data follows for the three months ended: 2019 Quarter Ended, March 31 June 30 September 30 December 31 (Dollars in thousands, except per share data) Interest income $ 14,086 $ 14,878 $ 15,112 $ 14,703 Interest expense 3,288 3,701 3,893 3,625 Net interest income before provision for loan losses 10,798 11,177 11,219 11,078 Provision for loan losses — 401 290 411 Net interest income after provision for loan losses 10,798 10,776 10,929 10,667 Noninterest income 3,533 2,647 2,733 2,513 Noninterest expense 8,073 8,358 8,424 7,665 Income before income tax provision 6,258 5,065 5,238 5,515 Income tax provision 1,518 1,229 1,238 1,334 Net income $ 4,740 $ 3,836 $ 4,000 $ 4,181 Basic earnings per common share $ 0.29 $ 0.24 $ 0.25 $ 0.26 Diluted earnings per common share $ 0.29 $ 0.23 $ 0.24 $ 0.26 2018 Quarter Ended, March 31 June 30 September 30 December 31 (Dollars in thousands, except per share data) Interest income $ 11,180 $ 12,062 $ 13,006 $ 13,820 Interest expense 1,621 2,075 2,521 2,894 Net interest income before provision for loan losses 9,559 9,987 10,485 10,926 Provision for loan losses 575 33 439 220 Net interest income after provision for loan losses 8,984 9,954 10,046 10,706 Noninterest income 2,212 2,783 2,284 2,050 Noninterest expense 6,811 7,478 7,705 7,568 Income before income tax provision 4,385 5,259 4,625 5,188 Income tax provision 1,169 1,468 1,144 1,423 Net income $ 3,216 $ 3,791 $ 3,481 $ 3,765 Basic earnings per common share $ 0.23 $ 0.24 $ 0.22 $ 0.23 Diluted earnings per common share $ 0.22 $ 0.23 $ 0.21 $ 0.23 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business Description | Business Description: OP Bancorp is a California corporation that was formed to acquire 100% of the voting equity of Open Bank (the “Bank”) and commenced operation as a bank holding company on June 1, 2016. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of OP Bancorp. OP Bancorp has no operations other than ownership of the Bank. The Bank is a California state-chartered and FDIC-insured financial institution, which began its operations on June 10, 2005. Headquartered in downtown Los Angeles, California, OP Bancorp operates primarily in the traditional banking business arena that includes accepting deposits and making loans and investments. OP Bancorp’s primary deposit products are demand and time deposits, and the primary lending products are commercial business loans to small to medium sized businesses. OP Bancorp is operating with nine full service branches. |
Initial Public Offering | Initial Public Offering: On March 27, 2018, the Company completed its initial public offering of common stock, pursuant to which an aggregate of 2,300,000 shares of its common stock were sold at a public offering price of $11.00 per share, for aggregate net proceeds of approximately $22.6 million, after deducting underwriter discounts and commissions paid by it of approximately $1.7 million and other offering expenses of approximately $925,000. |
Basis of Presentation | Basis of Presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Use of Estimates | Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. |
Concentration of Risk | Concentration of Risk: Most of the Company’s customers are located within Los Angeles County and the surrounding area. The concentration of loans originated in this area may subject the Company to the risk of adverse impacts of economic, regulatory or other developments that could occur in Southern California. The Company has significant concentration in commercial real estate loans. The Company obtains what it believes to be sufficient collateral to secure potential losses. The extent and value of the collateral obtained varies based upon the details underlying each loan agreement. |
Cash Flows | Cash Flows: Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions and Federal Home Loan Bank advances transactions. |
Securities | Securities: Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement, and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Other investments | Other investments: Other investments includes the followings : (i) Federal Home Loan Bank (“FHLB”) Stock - the Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; (ii) Pacific Coast Bankers Bank (“PCBB”) Stock - the Bank is a member of PCBB. PCBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; and (iii) the Company’s investment in a mutual fund to satisfy the Company’s requirements under the Community Reinvestment Act (“CRA”). CRA mutual fund is reported at fair value. Unrealized gains and losses on a CRA fund are recognized in other income in the Consolidated Statements of Income. |
Loans Held for Sale | Loans Held for Sale: Certain Small Business Administration (“SBA”) loans that may be sold prior to maturity are designated as held for sale at origination and are recorded at the lower of their cost or fair value less costs to sell, determined on an aggregate basis. A valuation allowance is established if the market value of such loans is lower than their cost, and operations are charged or credited for valuation adjustments. Origination fees on loans held for sale, net of certain costs of processing and closing the loans, are deferred until the time of sale and are included in the computation of the gain or loss from the sales of the related loans. A portion of the premium on sale of SBA loans is recognized as gains on sales of loans at the time of the sale. These loans are generally sold with servicing retained. |
Loans Receivable | Loans Receivable: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable, deferred loan fees and costs, and unearned income. The accrual of interest income on commercial real estate and other commercial and industrial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that in management’s judgment should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial real estate and construction loans. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Income recognition on impaired loans materially conforms to the method the Company uses for income recognition on nonaccrual loans. Allowance for impaired loans is determined based on the present value of the estimated cash flows or on the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measured fair value is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses, or alternatively, a specific allocation will be established. For consumer loans, management will generally charge off the balance if the loan is 90 days or more past due. The general component of the allowance covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent two years. For those portfolio segments that the Company does not have sufficient historical data available to track the loss migration, the loss factors are based on the actual loss history experienced by the Company over the most recent five years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified in the Company’s loan portfolio, and are also representative of the classes within the portfolio: commercial real estate, SBA loans—real estate, SBA loans—non-real estate, commercial and industrial, home mortgage, and consumer. The Company reviews the credit risk exposure of all its portfolio segments by internally assigned grades. The Company categorizes loans into risk grades based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For the home mortgage and consumer portfolio segments, the Company’s primary monitoring tool is reviewing past due listings to determine if the loans are performing. The determination of the allowance for loan losses is based on estimates that are particularly susceptible to changes in the economic environment and market conditions. |
Servicing Assets | Servicing Assets: When SBA loans are sold with servicing retained, servicing assets are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the assets as compared to their carrying amount. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in the valuation allowances are reported with other income on the income statement. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds, default rates, and losses. Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of servicing assets is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. |
Company Owned Life Insurance | Company Owned Life Insurance: The Company has purchased life insurance policies on certain key executives. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Premises and Equipment | Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation. Equipment and furnishings are depreciated over 3 to 10 years, and leasehold improvements are amortized over the lesser of the terms of the respective leases or the estimated useful lives. The straight-line method of depreciation is used for financial reporting purposes. Repairs and maintenance are charged to operating expenses as incurred. |
Other Real Estate Owned, Net | Other Real Estate Owned, Net: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when the legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through the completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at the lower of their cost or fair value less estimated costs to sell. If their fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Stock-Based Compensation | Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees based on the fair value of the awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of the grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Earnings per Common Share | Earnings per Common Share: Basic and diluted earnings per share is based on the two-class method prescribed in ASC Topic 260, Earnings Per Share (ASC 260). Stock options and restricted stock awards are considered outstanding for this calculation unless unearned. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock-based compensation plans. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. |
Income Taxes | Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. There were no interest or penalties recognized in the years ended December, 2019 or 2018. |
Comprehensive Income(Loss) | Comprehensive Income(Loss): Comprehensive income(loss) consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, which are also recognized as separate components of shareholders’ equity, net of tax. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 13—Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Operating Segments | Operating Segments: While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842): Targeted Improvements he Company does not expect the adoption of this guidance will be material to its consolidated statement of income. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The objective of ASU 2016-13 is to provide financial statement users with decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 includes provisions that require financial assets measured at amortized cost (such as loans and held to maturity (HTM) debt securities) to be presented at the net amount expected to be collected. This will be accomplished through recognition of an estimate of all current expected credit losses. The estimate will include forecasted information for the timeframe that an entity is able to develop reasonable and supportable forecasts. This is a change from the current practice of recognizing incurred losses based on the probable initial recognition threshold under current GAAP. In addition, credit losses on available for sale (AFS) debt securities will be recorded through an allowance for credit losses rather than as a write-down. Under ASU 2016-13, an entity will be able to record reversals of credit losses in current period income when the estimate of credit losses declines, whereas current GAAP prohibits reflecting those improvements in current period earnings. In July 2019, FASB proposed the effective date delay to January 2020 for SEC filers, excluding smaller reporting companies (“SRCs”) and emerging growth companies (“EGCs”), and January 2023 for all other entities including SRCs and EGCs, and on October 2019, FASB voted to approve the proposed delay. The Compny expects the adoption date would be January 2023. ASU 2016-13 will be applied through a cumulative effect adjustment to retained earnings (modified-retrospective approach), except for debt securities for which an other-than-temporary impairment had been recognized before the effective date. A prospective transition approach is required for these debt securities. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures, including software solutions, data requirements and loss estimation methodologies. The company has engaged a third party advisor to develop a new expected loss model. While the effects cannot yet be quantified, the Company expects ASU 2016-13 to add complexity and costs to its current credit loss evaluation process. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost, Fair Value, and the Corresponding Amounts of Gross Unrealized Gains and Losses | The following table summarizes the amortized cost, fair value, and the corresponding amounts of gross unrealized gains and losses for available for sale securities at December 31, 2019 and December 31, 2018: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) As of December 31, 2019: Available for sale: U.S. Government sponsored agency securities $ 5,000 $ 2 $ (1 ) $ 5,001 Mortgage-backed securities: residential 15,559 94 (12 ) 15,641 Collateralized mortgage obligations: residential 35,723 243 (59 ) 35,907 Total available for sale $ 56,282 $ 339 $ (72 ) $ 56,549 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) As of December 31, 2018: Available for sale: U.S. Government sponsored agency securities $ 6,994 $ — $ (88 ) $ 6,906 Mortgage-backed securities: residential 14,465 — (336 ) 14,129 Collateralized mortgage obligations: residential 34,655 156 (510 ) 34,301 Total available for sale $ 56,114 $ 156 $ (934 ) $ 55,336 |
Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale | There were no sales of securities available for sale during the years ended December 31, 2019 and 2018. The amortized cost and estimated fair value of securities available for sale at December 31, 2019, by contractual maturity, are shown below. Securities without a contractual maturity are shown separately. Amortized Cost Fair Value (Dollars in thousands) As of December 31, 2019: Available for sale: Within one year $ 4,000 $ 4,000 One to five years 1,000 1,001 Mortgage-backed securities: residential 15,559 15,641 Collateralized mortgage obligations: residential 35,723 35,907 Total available for sale $ 56,282 $ 56,549 |
Schedule of Securities With Unrealized Losses | The following table summarizes securities with unrealized losses at December 31, 2019 and December 31, 2018, aggregated by length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) As of December 31, 2019: Available for sale: U.S. Government sponsored agency securities $ — $ — $ 1,999 $ (1 ) $ 1,999 $ (1 ) Mortgage-backed securities: residential — — 3,254 (12 ) 3,254 (12 ) Collateralized mortgage obligations: residential 8,878 (29 ) 3,658 (30 ) 12,536 (59 ) Total available for sale $ 8,878 $ (29 ) $ 8,911 $ (43 ) $ 17,789 $ (72 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) As of December 31, 2018: Available for sale: U.S. Government sponsored agency securities $ — $ — $ 6,906 $ (88 ) $ 6,906 $ (88 ) Mortgage-backed securities: residential 3,209 (23 ) 10,920 (313 ) 14,129 (336 ) Collateralized mortgage obligations: residential 3,348 (26 ) 14,544 (484 ) 17,892 (510 ) Total available for sale $ 6,557 $ (49 ) $ 32,370 $ (885 ) $ 38,927 $ (934 ) |
Schedule of Other Investments | Other investments at December 31, 2019 and December 31, 2018, consisted of the following: December 31, 2019 December 31, 2018 (Dollars in thousands) FHLB stock $ 5,358 $ 4,582 PCBB stock 190 190 Mutual fund - CRA qualified 3,628 2,488 Total other investments $ 9,176 $ 7,260 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The composition of the loan portfolio was as follows at December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 (Dollars in thousands) Real estate: Commercial real estate $ 630,668 $ 503,834 SBA loans—real estate 122,373 117,834 Total real estate 753,041 621,668 SBA loans—non-real estate 9,895 9,541 Commercial and industrial 103,852 113,975 Home mortgage 120,686 127,298 Consumer 2,664 2,577 Gross loans receivable 990,138 875,059 Allowance for loan losses (10,050 ) (9,636 ) Loans receivable, net $ 980,088 $ 865,423 |
Schedule of Activity in Allowance for Loan Losses | The activity in the allowance for loan losses for the years ended December 31, 2019, 2018, and 2017 was as follows: SBA Commercial Real Estate SBA Loans Real Estate Loans Non- Real Estate Commercial and Industrial Home Mortgage Consumer Total (Dollars in thousands) Balance at January 1, 2017 $ 4,217 $ 893 $ 59 $ 1,322 $ 1,364 $ 55 $ 7,910 Provision for loan losses 584 189 634 (57 ) 44 (83 ) 1,311 Charge-offs — — (169 ) — — — (169 ) Recoveries — — 14 — — 73 87 Balance at December 31, 2017 $ 4,801 $ 1,082 $ 538 $ 1,265 $ 1,408 $ 45 $ 9,139 Provision for loan losses 4 (188 ) 103 1,115 245 (12 ) 1,267 Charge-offs — — (153 ) (634 ) — — (787 ) Recoveries — — 17 — — — 17 Balance at December 31, 2018 $ 4,805 $ 894 $ 505 $ 1,746 $ 1,653 $ 33 $ 9,636 Provision for loan losses 1,195 734 (384 ) (457 ) 14 — 1,102 Charge-offs — (689 ) — — — — (689 ) Recoveries — — — — — 1 1 Balance at December 31, 2019 $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 |
Schedule of Allowance for Loan Losses and Recorded Investment in Loans (including accrued interest receivable) by Portfolio Segment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans (including accrued interest receivable of $2.9 million and $2.8 million as of December 31, 2019 and 2018, respectively) by portfolio segment at December 31, 2019 and December 31, 2018: Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total (Dollars in thousands) As of December 31, 2019: Allowance for loan losses: Commercial real estate $ — $ 6,000 $ 6,000 SBA loans—real estate — 939 939 SBA loans—non-real estate — 121 121 Commercial and industrial 333 956 1,289 Home mortgage — 1,667 1,667 Consumer — 34 34 Total $ 333 $ 9,717 $ 10,050 Loans: Commercial real estate $ — $ 632,205 $ 632,205 SBA loans—real estate 484 122,438 122,922 SBA loans—non-real estate 33 9,921 9,954 Commercial and industrial 333 103,774 104,107 Home mortgage — 121,161 121,161 Consumer — 2,671 2,671 Total $ 850 $ 992,170 $ 993,020 As of December 31, 2018: Allowance for loan losses: Commercial real estate $ — $ 4,805 $ 4,805 SBA loans—real estate — 894 894 SBA loans—non-real estate 362 143 505 Commercial and industrial 836 910 1,746 Home mortgage — 1,653 1,653 Consumer — 33 33 Total $ 1,198 $ 8,438 $ 9,636 Loans: Commercial real estate $ — $ 505,229 $ 505,229 SBA loans—real estate 834 117,159 117,993 SBA loans—non-real estate 57 9,875 9,932 Commercial and industrial 1,516 112,781 114,297 Home mortgage — 127,806 127,806 Consumer — 2,586 2,586 Total $ 2,407 $ 875,436 $ 877,843 |
Schedule of Information Related to Impaired Loans by Class of Loans | The following table presents information related to impaired loans by class of loans as of and for the years ended December 31, 2019, 2018 and 2017. The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans is not considered to be material. The difference between interest income recognized and cash basis interest recognized was immaterial. Average Interest Recorded Allowance Recorded Income Investment Allocated Investment Recognized (Dollars in thousands) 2019 With no related allowance recorded: SBA loans—real estate $ 484 $ — $ 503 $ — SBA loans—non-real estate 33 — 45 — With an allowance recorded: Commercial and industrial 333 333 338 20 Total $ 850 $ 333 $ 886 $ 20 2018 With no related allowance recorded: SBA loans—real estate $ 834 $ — $ 473 $ — SBA loans—non-real estate 57 — — — Commercial and industrial 680 — 715 — With an allowance recorded: SBA loans—non-real estate — 362 14 — Commercial and industrial 836 836 841 49 Total $ 2,407 $ 1,198 $ 2,043 $ 49 2017 With no related allowance recorded: Home mortgage $ 241 $ — $ 242 $ — Consumer 21 — 31 — With an allowance recorded: Commercial and industrial 354 354 361 17 Total $ 616 $ 354 $ 634 $ 17 |
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due Greater Than 90 Days Still Accruing Interest by Class of Loans | The following table presents the recorded investment in nonaccrual loans and loans past due greater than 90 days still accruing interest by class of loans at December 31, 2019 and December 31, 2018: Nonaccrual Loans >90 Days Past Due & Still Accruing Total (Dollars in thousands) As of December 31, 2019: SBA loans—real estate $ 484 $ — $ 484 SBA loans—non-real estate 33 — 33 Home mortgage 698 — 698 Total $ 1,215 $ — $ 1,215 As of December 31, 2018: SBA loans—real estate $ 834 $ — $ 834 SBA loans—non-real estate 57 — 57 Commercial and industrial 680 — 680 Total $ 1,571 $ — $ 1,571 |
Schedule of Aging of Recorded Investment in Past Due Loans | The following table represents the aging of the recorded investment in past due loans at December 31, 2019 and December 31, 2018: 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Loans Not Past Due Total (Dollars in thousands) As of December 31, 2019: Commercial real estate $ — $ — $ — $ — $ 632,205 $ 632,205 SBA—real estate 1,552 — 484 2,036 120,886 122,922 SBA—non-real estate 3 126 33 162 9,792 9,954 Commercial and industrial 364 — — 364 103,743 104,107 Home mortgage 1,980 — 454 2,434 118,727 121,161 Consumer — — — — 2,671 2,671 $ 3,899 $ 126 $ 971 $ 4,996 $ 988,024 $ 993,020 As of December 31, 2018: Commercial real estate $ — $ — $ — $ — $ 505,229 $ 505,229 SBA—real estate — — 311 311 117,682 117,993 SBA—non-real estate — — — — 9,932 9,932 Commercial and industrial — — 680 680 113,617 114,297 Home mortgage 449 — — 449 127,357 127,806 Consumer — — — — 2,586 2,586 $ 449 $ — $ 991 $ 1,440 $ 876,403 $ 877,843 |
Schedule of Risk Category of Loans by Class of Loans | As of December 31, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Pass Special Mention Substandard Doubtful Total (Dollars in thousands) As of December 31, 2019: Commercial real estate $ 632,205 $ — $ — $ — $ 632,205 SBA loans—real estate 120,116 770 2,036 — 122,922 SBA loans—non-real estate 9,781 140 33 — 9,954 Commercial and industrial 98,509 4,901 697 — 104,107 Home mortgage 120,463 — 698 — 121,161 Consumer 2,671 — — — 2,671 $ 983,745 $ 5,811 $ 3,464 (1) $ — $ 993,020 As of December 31, 2018: Commercial real estate $ 505,229 $ — $ — $ — $ 505,229 SBA loans—real estate 115,993 — 2,000 — 117,993 SBA loans—non-real estate 9,859 16 57 — 9,932 Commercial and industrial 112,781 — 1,516 — 114,297 Home mortgage 127,806 — — — 127,806 Consumer 2,586 — — — 2,586 $ 874,254 $ 16 $ 3,573 (1) $ — $ 877,843 (1) Substandard loans include SBA guaranteed portion. Substandard loans, net of guaranteed are $3.0 million and $3.1 million, respectively |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease, Cost | The table below summarized the Company’s total lease cost: (Dollars in thousands) Year Ended December 31, 2019 Operating lease cost $ 1,731 Variable lease cost 728 Total lease cost $ 2,459 |
Summary of Other Information Related to Operating Leases | The table below summarizes other information related to the Company’s operating leases: (Dollars in thousands) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,902 Weighted average remaining lease term - operating leases 5.7 years Weighted average discount rate - operating leases 2.98 % |
Summary of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease liability | The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the consolidated balance sheet as of December 31, 2019: (Dollars in thousands) December 31, 2019 2020 $ 2,001 2021 2,032 2022 2,028 2023 1,816 2024 1,702 Thereafter 1,641 Total lease payments 11,220 Discount to present value (1,094 ) Total lease liability $ 10,126 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment | The Company’s premises and equipment consisted of the following at December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 (Dollars in thousands) Leasehold improvements $ 6,571 $ 5,518 Furniture and fixtures 3,174 2,791 Equipment and others 2,414 2,111 Total cost 12,159 10,420 Accumulated depreciation (6,933 ) (5,787 ) Net book value $ 5,226 $ 4,633 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Servicing Asset [Abstract] | |
Schedule of Activity for Loan Servicing Assets | Activity for loan servicing assets during the years ended December 31, 2019, 2018, and 2017 is as follows: Year Ended 2019 2018 2017 (Dollars in thousands) Beginning balance $ 6,987 $ 6,771 $ 6,783 Additions 2,121 2,257 1,923 Amortized to expense (2,084 ) (2,041 ) (1,935 ) Ending balance $ 7,024 $ 6,987 $ 6,771 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Maturities of Time Deposits | The scheduled maturities of time deposits were as follows at December 31, 2019: December 31, 2019 (In thousands) 2020 $ 417,316 2021 10,246 2022 1,242 2023 765 2024 243 Total $ 429,812 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings Available to the Company from Institutions | The Company had available borrowings from the following institutions as of December 31, 2019: December 31, 2019 (In thousands) Federal Home Loan Bank—San Francisco $ 238,906 Federal Reserve Bank 124,027 Pacific Coast Bankers Bank 8,000 Zions Bank 5,500 Total $ 376,433 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense (Benefit) | Income tax expense/(benefit) was as follows: Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 (Dollars in thousands) Current federal expense $ 3,162 $ 3,458 $ 5,894 Current state expense 1,983 1,983 2,002 5,145 5,441 7,896 Deferred federal expense 228 (131 ) (1,061 ) Deferred state expense (54 ) (106 ) (279 ) Deferred tax asset revaluation — — 1,336 174 (237 ) (4 ) Total tax expense $ 5,319 $ 5,204 $ 7,892 |
Summary of Effective Tax Rates Differ from Federal Statutory Rates | Effective tax rates differ from the federal statutory rates of 21% for 2019 and 2018, and 35% for 2017 applied to income before taxes due to the following: Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 (Dollars in thousands) Federal statutory rate times financial statement income $ 4,636 $ 4,086 $ 5,995 Effect of: Meals and entertainment 39 39 45 State income taxes, net of federal tax benefit 1,608 1,494 1,096 Stock option expense and related excess tax benefits (419 ) (400 ) (301 ) Company owned life insurance (314 ) (64 ) (112 ) Other, net (231 ) 49 (167 ) Deferred tax asset revaluation — — 1,336 683 1,118 1,897 Total tax expense $ 5,319 $ 5,204 $ 7,892 |
Summary of Net Deferred Tax Assets Included in Statement of Financial Position | The net deferred tax asset included in the statement of financial position includes the following components at the dates indicated below: December 31, 2019 December 31, 2018 (Dollars in thousands) Deferred tax assets: Pre-opening expense $ 7 $ 25 Organizational costs 27 30 Allowance for loan losses 2,971 2,849 Loans held for sale 52 16 Stock-based compensation 464 345 Accrued compensation 138 163 Lease liability 2,994 — Accrued rent — 553 State taxes 456 414 Net unrealized loss on securities available for sale — 230 Nonaccrual loan interest income 27 55 Other 24 44 Total deferred tax assets 7,160 4,724 Deferred tax liabilities: Loan origination costs (752 ) (590 ) Depreciation (663 ) (394 ) Right of use asset (2,441 ) — Net unrealized gain on securities available for sale (79 ) — Other (36 ) (68 ) Total deferred tax liabilities (3,971 ) (1,052 ) Net deferred tax asset $ 3,189 $ 3,672 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Distribution of Undisbursed Loan Commitments | The following table shows the distribution of undisbursed loan commitments as of the dates indicated: December 31, 2019 December 31, 2018 (Dollars in thousands) Commitments to extend credit $ 66,153 $ 60,789 Standby letter of credit 7,377 1,790 Commercial letter of credit 1,111 1,209 Total undisbursed loan commitments $ 74,641 $ 63,788 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
2005 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock-based Compensation Stock Options Activity | A summary of the transactions under the 2005 Plan for the year ended December 31, 2019 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except share data) Outstanding, as of January 1, 2019 250,000 $ 4.00 Options granted — — Options exercised (95,000 ) 2.20 Options forfeited — — Options expired — — Outstanding, as of December 31, 2019 155,000 4.70 $ 879 Fully vested and expected to vest 155,000 4.70 $ 879 Vested 155,000 $ 4.70 $ 879 |
Summary of Information Related to Stock Option Plan | Information related to the 2005 Plan for the periods indicated follows: Year Ended December 31, 2019 2018 2017 Intrinsic value of options exercised $ 592 $ 634 $ 175 Cash received from option exercises 178 195 142 Tax benefit realized from option exercised — — — |
2010 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock-based Compensation Stock Options Activity | A summary of the transactions under the 2010 Plan for the year ended December 31, 2019 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except share data) Outstanding, as of January 1, 2019 620,000 $ 4.57 Options granted — — Options exercised (255,000 ) 1.51 Options forfeited — — Options expired — — Outstanding, as of December 31, 2019 365,000 5.78 $ 1,677 Fully vested and expected to vest 350,000 5.68 $ 1,641 Vested 305,000 $ 5.34 $ 1,535 |
Summary of Information Related to Stock Option Plan | Information related to stock options exercised under the 2010 Plan for the periods indicated follows: Year Ended December 31, 2019 2018 2017 Intrinsic value of options exercised $ 1,728 $ 1,338 $ 497 Cash received from option exercises 385 519 285 Tax benefit realized from option exercised 453 286 209 |
Summary of Changes in Non-vested Restricted Stock Awards | A summary of the changes in the Company’s non-vested restricted stock awards under the 2010 Plan for the year ended December 31, 2019 is as follows: Shares Issued Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (Dollars in thousands, except share data) Non-vested, as of January 1, 2019 436,000 $ 8.19 Awards granted 18,000 9.43 Awards vested (141,500 ) 5.91 Awards forfeited (18,000 ) 10.78 Non-vested, as of December 31, 2019 294,500 $ 9.20 $ 3,054 |
2010 Plan | Restricted Stock Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Information Related to Non-vested Restricted Stock Awards | Information related to non-vested restricted stock awards under the 2010 Plan for the periods indicated follows: Year Ended December 31, 2019 2018 2017 Tax benefit realized from awards vested $ 144 $ 291 $ 615 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis at December 31, 2019 and December 31, 2018 are summarized below: Fair Value Measuring Using Quoted Significant Other Significant Prices in Observable Unobservable Total Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) As of December 31, 2019: U.S. Government sponsored agency securities $ 5,001 $ — $ 5,001 $ — Mortgage-backed securities - residential 15,641 — 15,641 — Collateralized mortgage obligations 35,907 — 35,907 — Other investments: Mutual fund - CRA qualified 3,628 3,628 — — As of December 31, 2018: U.S. Government sponsored agency securities $ 6,906 $ — $ 6,906 $ — Mortgage-backed securities - residential 14,129 — 14,129 — Collateralized mortgage obligations 34,301 — 34,301 — Other investments: Mutual fund - CRA qualified 2,488 2,488 — — |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | Financial Instruments Carrying Amount Level 1 Level 2 Level 3 Value (Dollars in thousands) As of December 31, 2019: Financial Assets: Cash and cash equivalents $ 86,036 $ 86,036 $ — $ — $ 86,036 Loans held for sale 2,100 — 2,100 — 2,100 Loans receivable, net 980,088 — — 1,009,490 1,009,490 Accrued interest receivable 3,166 41 243 2,882 3,166 Other investments: FHLB and PCBB stock 5,548 N/A N/A N/A N/A Financial Liabilities: Deposit $ 1,020,711 $ — $ 1,021,571 $ — $ 1,021,571 Accrued interest payable 2,686 — 2,686 — 2,686 The carrying amounts and estimated fair values of financial instruments not carried at fair value at December 31, 2018 are as follows: Carrying Amount Level 1 Level 2 Level 3 Value (Dollars in thousands) As of December 31, 2018: Financial Assets: Cash and cash equivalents $ 77,726 $ 77,726 $ — $ — $ 77,726 Loans held for sale 752 — 806 — 806 Loans receivable, net 865,423 — — 862,394 862,394 Accrued interest receivable 3,068 44 240 2,784 3,068 Other investments: FHLB and PCBB stock 4,772 N/A N/A N/A N/A Financial Liabilities: Deposit $ 905,176 $ — $ 904,466 $ — $ 904,466 Accrued interest payable 1,715 — 1,715 — 1,715 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer | The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2019: Total capital (to risk-weighted assets) Consolidated $ 150,092 15.18 % N/A N/A N/A N/A Bank 147,820 14.96 % 79,069 8.00 % 98,836 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 139,975 14.16 % N/A N/A N/A N/A Bank 137,703 13.93 % 59,301 6.00 % 79,069 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 139,975 14.16 % N/A N/A N/A N/A Bank 137,703 13.93 % 44,476 4.50 % 64,243 6.50 % Tier 1 capital (to average assets) Consolidated 139,975 12.14 % N/A N/A N/A N/A Bank 137,703 11.95 % 46,103 4.00 % 57,629 5.00 % Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2018: Total capital (to risk-weighted assets) Consolidated $ 139,593 16.26 % N/A N/A N/A N/A Bank 139,538 16.25 % 68,686 8.00 % 85,857 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 129,893 15.13 % N/A N/A N/A N/A Bank 129,838 15.12 % 51,514 6.00 % 68,686 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 129,893 15.13 % N/A N/A N/A N/A Bank 129,838 15.12 % 38,636 4.50 % 55,807 6.50 % Tier 1 capital (to average assets) Consolidated 129,893 12.88 % N/A N/A N/A N/A Bank 129,838 12.87 % 40,346 4.00 % 50,432 5.00 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The factors used in the earnings per share computation follow: Year Ended December 31, (Dollars in thousands, except share data) 2019 2018 2017 Basic Net income $ 16,757 $ 14,253 $ 9,236 Undistributed earnings allocated to participating securities (383 ) (422 ) (366 ) Net income allocated to common shares 16,374 13,831 8,870 Weighted average common shares outstanding 15,741,926 15,104,939 13,063,344 Basic earnings per common share $ 1.04 $ 0.92 $ 0.68 Diluted Net income allocated to common shares $ 16,374 $ 13,831 $ 8,870 Weighted average common shares outstanding for basic earnings per common share 15,741,926 15,104,939 13,063,344 Add: Dilutive effects of assumed exercises of stock options 193,388 446,124 422,447 Average shares and dilutive potential common shares 15,935,314 15,551,063 13,485,791 Diluted earnings per common share $ 1.03 $ 0.89 $ 0.66 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2019 2018 (Dollars in thousands) ASSETS Investment in bank subsidiary $ 138,304 $ 129,732 Cash and cash equivalents 2,219 — Other assets 141 55 Total assets $ 140,664 $ 129,787 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable and other liabilities 88 — Shareholders’ equity 140,576 129,787 Total liabilities and shareholders' equity $ 140,664 $ 129,787 |
Condensed Statements of Income and Comprehensive Income | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Other expense $ 1,011 $ 134 $ 38 Income before income tax and undistributed subsidiary income (1,011 ) (134 ) (38 ) Income tax benefit (288 ) (40 ) (16 ) Equity in undistributed subsidiary income 17,480 14,347 9,258 Net income 16,757 14,253 9,236 Other comprehensive income (loss), net of tax 736 (198 ) (135 ) Net income $ 17,493 $ 14,055 $ 9,101 |
Condensed Statement of Cash Flows | CONDENSED STATEMENT OF CASH FLOWS Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Cash flows from operating activities Net income $ 16,757 $ 14,253 $ 9,236 Adjustments: Equity in undistributed subsidiary income (17,480 ) (14,347 ) (9,258 ) Change in other assets 6 94 22 Change in accounts payable and other liabilities 88 — — Net cash from operating activities (629 ) — — Cash flows from investing activities Net cash from investing activities — — — Cash flows from financing activities Repurchase of common stock (5,391 ) — — Cash dividend paid on common stock (3,151 ) — — Proceeds from subsidiaries 11,390 — — Net cash from financing activities 2,848 — — Net change in cash and cash equivalents 2,219 — — Cash and cash equivalents at beginning of year — — — Cash and cash equivalents at end of year $ 2,219 $ — $ — |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Unaudited Quarterly Financial Data | Summarized unaudited quarterly financial data follows for the three months ended: 2019 Quarter Ended, March 31 June 30 September 30 December 31 (Dollars in thousands, except per share data) Interest income $ 14,086 $ 14,878 $ 15,112 $ 14,703 Interest expense 3,288 3,701 3,893 3,625 Net interest income before provision for loan losses 10,798 11,177 11,219 11,078 Provision for loan losses — 401 290 411 Net interest income after provision for loan losses 10,798 10,776 10,929 10,667 Noninterest income 3,533 2,647 2,733 2,513 Noninterest expense 8,073 8,358 8,424 7,665 Income before income tax provision 6,258 5,065 5,238 5,515 Income tax provision 1,518 1,229 1,238 1,334 Net income $ 4,740 $ 3,836 $ 4,000 $ 4,181 Basic earnings per common share $ 0.29 $ 0.24 $ 0.25 $ 0.26 Diluted earnings per common share $ 0.29 $ 0.23 $ 0.24 $ 0.26 2018 Quarter Ended, March 31 June 30 September 30 December 31 (Dollars in thousands, except per share data) Interest income $ 11,180 $ 12,062 $ 13,006 $ 13,820 Interest expense 1,621 2,075 2,521 2,894 Net interest income before provision for loan losses 9,559 9,987 10,485 10,926 Provision for loan losses 575 33 439 220 Net interest income after provision for loan losses 8,984 9,954 10,046 10,706 Noninterest income 2,212 2,783 2,284 2,050 Noninterest expense 6,811 7,478 7,705 7,568 Income before income tax provision 4,385 5,259 4,625 5,188 Income tax provision 1,169 1,468 1,144 1,423 Net income $ 3,216 $ 3,791 $ 3,481 $ 3,765 Basic earnings per common share $ 0.23 $ 0.24 $ 0.22 $ 0.23 Diluted earnings per common share $ 0.22 $ 0.23 $ 0.21 $ 0.23 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Jan. 01, 2019USD ($) | Mar. 27, 2018USD ($)$ / sharesshares | Dec. 31, 2019USD ($)Branch | Dec. 31, 2018USD ($)shares | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Operations commenced date | Jun. 1, 2016 | ||||
Number of full service branches | Branch | 9 | ||||
Interest and/or penalties related to income tax matters | $ 0 | $ 0 | |||
Operating lease liabilities | [1] | 10,126,000 | |||
Operating right-of-use assets | [1] | 8,254,000 | |||
ASU 2016-02 | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Operating lease liabilities | $ 9,900,000 | ||||
Operating right-of-use assets | 8,000,000 | $ 8,254,000 | |||
Cumulative-effect adjustment to retained earnings | $ 0 | ||||
Equipment and Furnishings | Minimum | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Equipment and furnishings, useful lives | 3 years | ||||
Equipment and Furnishings | Maximum | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Equipment and furnishings, useful lives | 10 years | ||||
Common Stock | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Stock issued under stock offering, net of expenses, shares | shares | 2,300,000 | ||||
Proceeds from issuance initial public offering | $ 22,600,000 | ||||
Initial Public Offering | Common Stock | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Stock issued under stock offering, net of expenses, shares | shares | 2,300,000 | ||||
Stock price per share | $ / shares | $ 11 | ||||
Payments for underwriting discounts and commissions | $ 1,700,000 | ||||
Payments of stock offering expenses | $ 925,000 | ||||
Open Bank | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Percentage of voting equity interests acquired | 100.00% | ||||
Operations commenced date | Jun. 10, 2005 | ||||
[1] | The adoption of ASU 2016-02, Leases (Topic 842) in the first quarter of 2019 resulted in the recognition of right-of-use assets and lease liabilities on balance sheet. |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost, Fair Value, and the Corresponding Amounts of Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 56,282 | $ 56,114 |
Gross Unrealized Gains | 339 | 156 |
Gross Unrealized Losses | (72) | (934) |
Fair Value | 56,549 | 55,336 |
U.S. Government Sponsored Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 5,000 | 6,994 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (1) | (88) |
Fair Value | 5,001 | 6,906 |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 15,559 | 14,465 |
Gross Unrealized Gains | 94 | |
Gross Unrealized Losses | (12) | (336) |
Fair Value | 15,641 | 14,129 |
Collateralized Mortgage Obligations, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 35,723 | 34,655 |
Gross Unrealized Gains | 243 | 156 |
Gross Unrealized Losses | (59) | (510) |
Fair Value | $ 35,907 | $ 34,301 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Proceeds from sale of available-for-sale securities | $ 0 | $ 0 |
Mutual fund - CRA qualified | 3,628,000 | 2,488,000 |
Other Income | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized holding gains (losses) on investment | 72,000 | (87,000) |
Securities Available For Sale, At Fair Value | ASU 2016-01 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Mutual fund - CRA qualified | (2,500,000) | |
Other Investments | ASU 2016-01 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Mutual fund - CRA qualified | 2,500,000 | |
Collateral Pledged | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of securities pledged as collateral | $ 0 | $ 0 |
Stockholder's Equity | Credit Concentration Risk | Non-US Government and Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Within one year, Amortized Cost | $ 4,000 | |
One to five years, Amortized Cost | 1,000 | |
Available for sale, Amortized Cost | 56,282 | $ 56,114 |
Within one year, Fair Value | 4,000 | |
One to five years, Fair Value | 1,001 | |
Available for sale, Fair Value | 56,549 | 55,336 |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 15,559 | 14,465 |
Available for sale, Fair Value | 15,641 | 14,129 |
Collateralized Mortgage Obligations, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 35,723 | 34,655 |
Available for sale, Fair Value | $ 35,907 | $ 34,301 |
Securities - Schedule of Securi
Securities - Schedule of Securities With Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | $ 8,878 | $ 6,557 |
Unrealized Losses, Less Than 12 Months | (29) | (49) |
Fair Value, 12 Months or Longer | 8,911 | 32,370 |
Unrealized Losses, 12 Months or Longer | (43) | (885) |
Total Fair Value | 17,789 | 38,927 |
Total Unrealized Losses | (72) | (934) |
U.S. Government Sponsored Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, 12 Months or Longer | 1,999 | 6,906 |
Unrealized Losses, 12 Months or Longer | (1) | (88) |
Total Fair Value | 1,999 | 6,906 |
Total Unrealized Losses | (1) | (88) |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 3,209 | |
Unrealized Losses, Less Than 12 Months | (23) | |
Fair Value, 12 Months or Longer | 3,254 | 10,920 |
Unrealized Losses, 12 Months or Longer | (12) | (313) |
Total Fair Value | 3,254 | 14,129 |
Total Unrealized Losses | (12) | (336) |
Collateralized Mortgage Obligations, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 8,878 | 3,348 |
Unrealized Losses, Less Than 12 Months | (29) | (26) |
Fair Value, 12 Months or Longer | 3,658 | 14,544 |
Unrealized Losses, 12 Months or Longer | (30) | (484) |
Total Fair Value | 12,536 | 17,892 |
Total Unrealized Losses | $ (59) | $ (510) |
Securities - Schedule of Other
Securities - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
FHLB stock | $ 5,358 | $ 4,582 |
PCBB stock | 190 | 190 |
Mutual fund - CRA qualified | 3,628 | 2,488 |
Total other investments | $ 9,176 | $ 7,260 |
Loans - Composition of Loan Por
Loans - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | $ 990,138 | $ 875,059 |
Allowance for loan losses | (10,050) | (9,636) |
Loans receivable, net | 980,088 | 865,423 |
Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 753,041 | 621,668 |
Real Estate | Commercial Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 630,668 | 503,834 |
Real Estate | SBA Loans—Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 122,373 | 117,834 |
SBA Loans—Non-Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 9,895 | 9,541 |
Commercial and Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 103,852 | 113,975 |
Home Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 120,686 | 127,298 |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | $ 2,664 | $ 2,577 |
Loans - Additional Information
Loans - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |||
Loans | $ 0 | $ 0 | |
Accrued interest receivable | 2,900,000 | 2,800,000 | |
Recorded investment in troubled debt restructurings | 333,000 | 343,000 | |
Specific reserves to customers whose loan terms have been modified in troubled debt restructurings | $ 333,000 | $ 343,000 | |
Loans identified as trouble debt restructurings | Contract | 0 | 0 | 0 |
Financing receivable, modifications, subsequent default, recorded investment | $ 0 | $ 0 | $ 0 |
Loans - Schedule of Activity in
Loans - Schedule of Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | $ 9,636 | $ 9,139 | $ 7,910 |
Provision for loan losses | 1,102 | 1,267 | 1,311 |
Charge-offs | (689) | (787) | (169) |
Recoveries | 1 | 17 | 87 |
Ending balance | 10,050 | 9,636 | 9,139 |
Commercial Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 4,805 | 4,801 | 4,217 |
Provision for loan losses | 1,195 | 4 | 584 |
Ending balance | 6,000 | 4,805 | 4,801 |
SBA Loans-Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 894 | 1,082 | 893 |
Provision for loan losses | 734 | (188) | 189 |
Charge-offs | (689) | ||
Ending balance | 939 | 894 | 1,082 |
SBA Loans—Non-Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 505 | 538 | 59 |
Provision for loan losses | (384) | 103 | 634 |
Charge-offs | (153) | (169) | |
Recoveries | 17 | 14 | |
Ending balance | 121 | 505 | 538 |
Commercial and Industrial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 1,746 | 1,265 | 1,322 |
Provision for loan losses | (457) | 1,115 | (57) |
Charge-offs | (634) | ||
Ending balance | 1,289 | 1,746 | 1,265 |
Home Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 1,653 | 1,408 | 1,364 |
Provision for loan losses | 14 | 245 | 44 |
Ending balance | 1,667 | 1,653 | 1,408 |
Consumer | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 33 | 45 | 55 |
Provision for loan losses | (12) | (83) | |
Recoveries | 1 | 73 | |
Ending balance | $ 34 | $ 33 | $ 45 |
Loans - Schedule of Allowance f
Loans - Schedule of Allowance for Loan Losses and Recorded Investment in Loans (including accrued interest receivable) by Portfolio Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | $ 333 | $ 1,198 | ||
Allowance for Loan Collectively Evaluated for Impairment | 9,717 | 8,438 | ||
Total | 10,050 | 9,636 | $ 9,139 | $ 7,910 |
Loans Individually Evaluated for Impairment | 850 | 2,407 | ||
Loans Collectively Evaluated for Impairment | 992,170 | 875,436 | ||
Total | 993,020 | 877,843 | ||
Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 6,000 | 4,805 | ||
Total | 6,000 | 4,805 | 4,801 | 4,217 |
Loans Collectively Evaluated for Impairment | 632,205 | 505,229 | ||
Total | 632,205 | 505,229 | ||
SBA Loans-Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 939 | 894 | ||
Total | 939 | 894 | 1,082 | 893 |
Loans Individually Evaluated for Impairment | 484 | 834 | ||
Loans Collectively Evaluated for Impairment | 122,438 | 117,159 | ||
Total | 122,922 | 117,993 | ||
SBA Loans—Non-Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | 362 | |||
Allowance for Loan Collectively Evaluated for Impairment | 121 | 143 | ||
Total | 121 | 505 | 538 | 59 |
Loans Individually Evaluated for Impairment | 33 | 57 | ||
Loans Collectively Evaluated for Impairment | 9,921 | 9,875 | ||
Total | 9,954 | 9,932 | ||
Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | 333 | 836 | ||
Allowance for Loan Collectively Evaluated for Impairment | 956 | 910 | ||
Total | 1,289 | 1,746 | 1,265 | 1,322 |
Loans Individually Evaluated for Impairment | 333 | 1,516 | ||
Loans Collectively Evaluated for Impairment | 103,774 | 112,781 | ||
Total | 104,107 | 114,297 | ||
Home Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 1,667 | 1,653 | ||
Total | 1,667 | 1,653 | 1,408 | 1,364 |
Loans Collectively Evaluated for Impairment | 121,161 | 127,806 | ||
Total | 121,161 | 127,806 | ||
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 34 | 33 | ||
Total | 34 | 33 | $ 45 | $ 55 |
Loans Collectively Evaluated for Impairment | 2,671 | 2,586 | ||
Total | $ 2,671 | $ 2,586 |
Loans - Schedule of Information
Loans - Schedule of Information Related to Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | |||
Recorded investment | $ 850 | $ 616 | |
Recorded investment | $ 2,407 | ||
Allowance Allocated | 333 | 1,198 | 354 |
Average Recorded Investment | 886 | 2,043 | |
Average Recorded Investment, With an allowance recorded | 634 | ||
Interest Income Recognized | 20 | 49 | 17 |
SBA Loans—Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment, With no related allowance recorded | 484 | 834 | |
Average Recorded Investment, With no related allowance recorded | 503 | 473 | |
SBA Loans—Non-Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment, With no related allowance recorded | 33 | 57 | |
Average Recorded Investment, With no related allowance recorded | 45 | ||
Commercial And Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment, With no related allowance recorded | 333 | 680 | |
Recorded investment | 836 | 354 | |
Allowance Allocated | 333 | ||
Allowance Allocated | 836 | 354 | |
Average Recorded Investment, With no related allowance recorded | 338 | 715 | |
Average Recorded Investment, With an allowance recorded | 841 | 361 | |
Interest Income Recognized, With no related allowance recorded | $ 20 | ||
Interest Income Recognized, With an allowance recorded | 49 | 17 | |
SBA Loans-Non-Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Allowance Allocated | 362 | ||
Average Recorded Investment, With no related allowance recorded | $ 14 | ||
Home Mortgage | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment, With no related allowance recorded | 241 | ||
Average Recorded Investment, With no related allowance recorded | 242 | ||
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment, With no related allowance recorded | 21 | ||
Average Recorded Investment, With no related allowance recorded | $ 31 |
Loans - Schedule of Recorded In
Loans - Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due Greater Than 90 Days Still Accruing Interest by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | $ 1,215 | $ 1,571 |
Total | 1,215 | 1,571 |
SBA Loans—Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 484 | 834 |
Total | 484 | 834 |
SBA Loans-Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 33 | 57 |
Total | 33 | 57 |
Commercial And Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 680 | |
Total | $ 680 | |
Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 698 | |
Total | $ 698 |
Loans - Schedule of Aging of Re
Loans - Schedule of Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | $ 4,996 | $ 1,440 |
Loans Not Past Due | 988,024 | 876,403 |
Total | 993,020 | 877,843 |
30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 3,899 | 449 |
60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 126 | |
> 90 Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 971 | 991 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 632,205 | 505,229 |
Total | 632,205 | 505,229 |
SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 2,036 | 311 |
Loans Not Past Due | 120,886 | 117,682 |
Total | 122,922 | 117,993 |
SBA Loans-Real Estate | 30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,552 | |
SBA Loans-Real Estate | > 90 Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 484 | 311 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 162 | |
Loans Not Past Due | 9,792 | 9,932 |
Total | 9,954 | 9,932 |
SBA Loans—Non-Real Estate | 30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 3 | |
SBA Loans—Non-Real Estate | 60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 126 | |
SBA Loans—Non-Real Estate | > 90 Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 33 | |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 364 | 680 |
Loans Not Past Due | 103,743 | 113,617 |
Total | 104,107 | 114,297 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 364 | |
Commercial and Industrial | > 90 Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 680 | |
Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 2,434 | 449 |
Loans Not Past Due | 118,727 | 127,357 |
Total | 121,161 | 127,806 |
Home Mortgage | 30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,980 | 449 |
Home Mortgage | > 90 Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 454 | |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 2,671 | 2,586 |
Total | $ 2,671 | $ 2,586 |
Loans - Schedule of Risk Catego
Loans - Schedule of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment [Line Items] | ||
Total | $ 993,020 | $ 877,843 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 983,745 | 874,254 |
Special Member | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 5,811 | 16 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 3,464 | 3,573 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 632,205 | 505,229 |
Commercial Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 632,205 | 505,229 |
SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 122,922 | 117,993 |
SBA Loans-Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 120,116 | 115,993 |
SBA Loans-Real Estate | Special Member | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 770 | |
SBA Loans-Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 2,036 | 2,000 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 9,954 | 9,932 |
SBA Loans—Non-Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 9,781 | 9,859 |
SBA Loans—Non-Real Estate | Special Member | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 140 | 16 |
SBA Loans—Non-Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 33 | 57 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 104,107 | 114,297 |
Commercial and Industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 98,509 | 112,781 |
Commercial and Industrial | Special Member | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 4,901 | |
Commercial and Industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 697 | 1,516 |
Home Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 121,161 | 127,806 |
Home Mortgage | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 120,463 | 127,806 |
Home Mortgage | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 698 | |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 2,671 | 2,586 |
Consumer | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | $ 2,671 | $ 2,586 |
Loans - Schedule of Risk Cate_2
Loans - Schedule of Risk Category of Loans by Class of Loans (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans net of guarantee | $ 3 | $ 3.1 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | ||
Lessee Lease Description [Line Items] | |||||
Remaining operating lease terms | 5 years 8 months 12 days | ||||
Operating lease liabilities | [1] | $ 10,126 | |||
Operating right-of-use assets | [1] | 8,254 | |||
Operating lease rent expense | $ 2,500 | $ 2,100 | $ 2,000 | ||
ASU 2016-02 | |||||
Lessee Lease Description [Line Items] | |||||
Lease renewal term | 5 years | ||||
Operating lease, existence of option to terminate [true false] | true | ||||
Operating lease, Option to terminate description | Certain lease arrangements contain extension option which are typically around 5 years. | ||||
Operating lease liabilities | $ 9,900 | ||||
Operating right-of-use assets | $ 8,254 | $ 8,000 | |||
ASU 2016-02 | Minimum | |||||
Lessee Lease Description [Line Items] | |||||
Remaining operating lease terms | 1 year | ||||
ASU 2016-02 | Maximum | |||||
Lessee Lease Description [Line Items] | |||||
Remaining operating lease terms | 10 years | ||||
[1] | The adoption of ASU 2016-02, Leases (Topic 842) in the first quarter of 2019 resulted in the recognition of right-of-use assets and lease liabilities on balance sheet. |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,731 |
Variable lease cost | 728 |
Total lease cost | $ 2,459 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Operating Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 1,902 |
Weighted average remaining lease term - operating leases | 5 years 8 months 12 days |
Weighted average discount rate - operating leases | 2.98% |
Leases - Summary of Remaining C
Leases - Summary of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease liability (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
Leases [Abstract] | ||
2020 | $ 2,001 | |
2021 | 2,032 | |
2022 | 2,028 | |
2023 | 1,816 | |
2024 | 1,702 | |
Thereafter | 1,641 | |
Total lease payments | 11,220 | |
Discount to present value | (1,094) | |
Total lease liability | $ 10,126 | [1] |
[1] | The adoption of ASU 2016-02, Leases (Topic 842) in the first quarter of 2019 resulted in the recognition of right-of-use assets and lease liabilities on balance sheet. |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Total cost | $ 12,159 | $ 10,420 |
Accumulated depreciation | (6,933) | (5,787) |
Net book value | 5,226 | 4,633 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 6,571 | 5,518 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 3,174 | 2,791 |
Equipment and Others | ||
Property Plant And Equipment [Line Items] | ||
Total cost | $ 2,414 | $ 2,111 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 1.1 | $ 1 | $ 1 |
Servicing Assets - Schedule of
Servicing Assets - Schedule of Activity for Loan Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Servicing Asset [Abstract] | |||
Beginning balance | $ 6,987 | $ 6,771 | $ 6,783 |
Additions | 2,121 | 2,257 | 1,923 |
Amortized to expense | (2,084) | (2,041) | (1,935) |
Ending balance | $ 7,024 | $ 6,987 | $ 6,771 |
Servicing Assets - Additional I
Servicing Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Servicing Assets At Amortized Value [Line Items] | |||
Valuation allowance against carrying value of servicing assets | $ 0 | $ 0 | $ 0 |
Servicing asset at fair value, amount | $ 8,200,000 | $ 8,500,000 | |
Minimum | |||
Servicing Assets At Amortized Value [Line Items] | |||
Fair value of servicing assets, discount rates | 1.75% | 1.81% | |
Fair value of servicing assets, prepayment speed | 14.00% | 11.20% | |
Maximum | |||
Servicing Assets At Amortized Value [Line Items] | |||
Fair value of servicing assets, discount rates | 10.00% | 11.00% | |
Fair value of servicing assets, prepayment speed | 15.30% | 13.00% |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposits [Line Items] | ||
Time deposits greater than $250,000 | $ 213,345,000 | $ 164,281,000 |
Principal Officers, Directors, and Affiliates | ||
Time Deposits [Line Items] | ||
Deposits from principal officers, directors, and their affiliates | $ 1,600,000 | $ 778,000 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Deposits [Abstract] | |
2020 | $ 417,316 |
2021 | 10,246 |
2022 | 1,242 |
2023 | 765 |
2024 | 243 |
Total | $ 429,812 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Federal home loan bank borrowings | $ 0 |
Letter of credit | 49,000,000 |
Collateral pledged | $ 832,800,000 |
Borrowing Arrangements - Summar
Borrowing Arrangements - Summary of Borrowings Available to the Company from Institutions (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 376,433 |
Federal Home Loan Bank—San Francisco | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 238,906 |
Federal Reserve Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 124,027 |
Pacific Coast Bankers Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 8,000 |
Zions Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 5,500 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current federal expense | $ 3,162 | $ 3,458 | $ 5,894 | ||||||||
Current state expense | 1,983 | 1,983 | 2,002 | ||||||||
Current federal, state expense (benefit) | 5,145 | 5,441 | 7,896 | ||||||||
Deferred federal expense | 228 | (131) | (1,061) | ||||||||
Deferred state expense | (54) | (106) | (279) | ||||||||
Deferred tax asset revaluation | 1,336 | ||||||||||
Deferred federal, state expense (benefit) | 174 | (237) | (4) | ||||||||
Total tax expense | $ 1,334 | $ 1,238 | $ 1,229 | $ 1,518 | $ 1,423 | $ 1,144 | $ 1,468 | $ 1,169 | $ 5,319 | $ 5,204 | $ 7,892 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Change in deferred tax assets | $ 1,300,000 | ||
Income tax expense | 1,300,000 | ||
Unrealized tax benefits | $ 0 | $ 0 | $ 0 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Tax Rates Differ from Federal Statutory Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal statutory rate times financial statement income | $ 4,636 | $ 4,086 | $ 5,995 | ||||||||
Effect of: | |||||||||||
Meals and entertainment | 39 | 39 | 45 | ||||||||
State income taxes, net of federal tax benefit | 1,608 | 1,494 | 1,096 | ||||||||
Stock option expense and related excess tax benefits | (419) | (400) | (301) | ||||||||
Company owned life insurance | (314) | (64) | (112) | ||||||||
Other, net | (231) | 49 | (167) | ||||||||
Deferred tax asset revaluation | 1,336 | ||||||||||
Effect of income tax rate to income before taxes | 683 | 1,118 | 1,897 | ||||||||
Total tax expense | $ 1,334 | $ 1,238 | $ 1,229 | $ 1,518 | $ 1,423 | $ 1,144 | $ 1,468 | $ 1,169 | $ 5,319 | $ 5,204 | $ 7,892 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets Included in Statement of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Pre-opening expense | $ 7 | $ 25 |
Organizational costs | 27 | 30 |
Allowance for loan losses | 2,971 | 2,849 |
Loans held for sale | 52 | 16 |
Stock-based compensation | 464 | 345 |
Accrued compensation | 138 | 163 |
Lease liability | 2,994 | |
Accrued rent | 553 | |
State taxes | 456 | 414 |
Net unrealized loss on securities available for sale | 230 | |
Nonaccrual loan interest income | 27 | 55 |
Other | 24 | 44 |
Total deferred tax assets | 7,160 | 4,724 |
Deferred tax liabilities: | ||
Loan origination costs | (752) | (590) |
Depreciation | (663) | (394) |
Right of use asset | (2,441) | |
Net unrealized gain on securities available for sale | (79) | |
Other | (36) | (68) |
Total deferred tax liabilities | (3,971) | (1,052) |
Net deferred tax asset | $ 3,189 | $ 3,672 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Distribution of Undisbursed Loan Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | $ 74,641 | $ 63,788 |
Commitments to Extend Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | 66,153 | 60,789 |
Standby Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | 7,377 | 1,790 |
Commercial Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | $ 1,111 | $ 1,209 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based compensation expense | $ 1,275,000 | $ 969,000 | $ 668,000 | ||
2005 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation shares authorized under stock option plans | 770,000 | ||||
Percent of the fair value options granted | 100.00% | ||||
Shares available for grant | 0 | ||||
Weighted average remaining contractual term stock options outstanding | 2 years 6 months 7 days | ||||
Weighted average remaining contractual life for options exercisable | 2 years 6 months | ||||
2005 Plan | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Stock options, when granted, expiration period | 10 years | ||||
2010 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation shares authorized under stock option plans | 90,427 | 2,500,000 | 1,350,000 | ||
Percent of the fair value options granted | 100.00% | ||||
Weighted average remaining contractual term stock options outstanding | 2 years 9 months 3 days | ||||
Weighted average remaining contractual life for options exercisable | 2 years 5 months 15 days | ||||
Number of options outstanding, Granted | 0 | 0 | |||
Unrecognized compensation costs related to unvested stock options | $ 1,800,000 | ||||
Unrecognized compensation costs weighted average period | 1 year 3 months 25 days | ||||
2010 Plan | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Stock options, when granted, expiration period | 10 years | ||||
2010 Plan | Restricted Stock Awards | Share-based Payment Arrangement, Vesting in Three Years | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | 3 years | |||
2010 Plan | Restricted Stock Awards | Share-based Payment Arrangement, Vesting in Five Years | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | 5 years |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock-based Compensation Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options outstanding, Beginning of period | 250,000 | |
Number of options outstanding, Exercised | (95,000) | |
Number of options outstanding, Ending of year | 155,000 | 250,000 |
Number of options outstanding, Full vested and expected to vest | 155,000 | |
Number of options outstanding, Vested | 155,000 | |
2005 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average exercise price, Outstanding beginning | $ 4 | |
Weighted average exercise price, Exercised | 2.20 | |
Weighted average exercise price, Outstanding ending | 4.70 | $ 4 |
Weighted average exercise price, Full vested and expected to vest | 4.70 | |
Weighted average exercise price, Vested | $ 4.70 | |
Aggregate intrinsic value, Outstanding | $ 879 | |
Aggregate intrinsic value, Fully vested and expected to vest | 879 | |
Aggregate intrinsic value, Vested | $ 879 | |
2010 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options outstanding, Beginning of period | 620,000 | |
Number of options outstanding, Granted | 0 | 0 |
Number of options outstanding, Exercised | (255,000) | |
Number of options outstanding, Ending of year | 365,000 | 620,000 |
Number of options outstanding, Full vested and expected to vest | 350,000 | |
Number of options outstanding, Vested | 305,000 | |
Weighted average exercise price, Outstanding beginning | $ 4.57 | |
Weighted average exercise price, Exercised | 1.51 | |
Weighted average exercise price, Outstanding ending | 5.78 | $ 4.57 |
Weighted average exercise price, Full vested and expected to vest | 5.68 | |
Weighted average exercise price, Vested | $ 5.34 | |
Aggregate intrinsic value, Outstanding | $ 1,677 | |
Aggregate intrinsic value, Fully vested and expected to vest | 1,641 | |
Aggregate intrinsic value, Vested | $ 1,535 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Information Related to Stock Option Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash received from option exercises | $ 563 | $ 714 | $ 427 |
2005 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value of options exercised | 592 | 634 | 175 |
Cash received from option exercises | 178 | 195 | 142 |
2010 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value of options exercised | 1,728 | 1,338 | 497 |
Cash received from option exercises | 385 | 519 | 285 |
Tax benefit realized from option exercised | 453 | 286 | 209 |
2010 Plan | Restricted Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax benefit realized from awards vested | $ 144 | $ 291 | $ 615 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Changes in Non-vested Restricted Stock Awards (Details) - 2010 Plan - Restricted Stock Awards $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares issued, Non-vested beginning of period | shares | 436,000 |
Shares issued, Awards granted | shares | 18,000 |
Shares issued, Awards vested | shares | (141,500) |
Shares issued, Awards forfeited | shares | (18,000) |
Shares issued, Non-vested end of period | shares | 294,500 |
Weighted average grant date fair value, Non-vested beginning of period | $ / shares | $ 8.19 |
Weighted average grant date fair value, Awards granted | $ / shares | 9.43 |
Weighted average grant date fair value, Awards vested | $ / shares | 5.91 |
Weighted average grant date fair value, Awards forfeited | $ / shares | 10.78 |
Weighted average grant date fair value, Non-vested end of period | $ / shares | $ 9.20 |
Aggregate intrinsic value, Non-vested end of year | $ | $ 3,054 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - 401 (k) Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Eligibility age of employees for plan | 21 years | ||
Employee minimum service period | 90 days | ||
Employer contribution amount | $ 602,000 | $ 481,000 | $ 420,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||||||||
Service charges on deposits | $ 2,015,000 | $ 1,916,000 | $ 1,656,000 | ||||||||
Noninterest income | $ 2,513,000 | $ 2,733,000 | $ 2,647,000 | $ 3,533,000 | $ 2,050,000 | $ 2,284,000 | $ 2,783,000 | $ 2,212,000 | 11,426,000 | $ 9,329,000 | $ 8,986,000 |
Service Fees and Transaction-Based Fees Income | |||||||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||||||||
Service charges on deposits | $ 736,000 | ||||||||||
Percentage on revenue | 1.30% | ||||||||||
Overdraft and NSF Fees Income | |||||||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||||||||
Service charges on deposits | $ 958,000 | ||||||||||
Percentage on revenue | 1.70% | ||||||||||
Wire Transfer Fee Income | |||||||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||||||||
Percentage on revenue | 0.60% | ||||||||||
Noninterest income | $ 320,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other investments: | ||
Mutual fund - CRA qualified | $ 3,628 | $ 2,488 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
U.S. Government sponsored agency securities | 5,001 | 6,906 |
Mortgage-backed securities - residential | 15,641 | 14,129 |
Collateralized mortgage obligations | 35,907 | 34,301 |
Other investments: | ||
Mutual fund - CRA qualified | 3,628 | 2,488 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Other investments: | ||
Mutual fund - CRA qualified | 3,628 | 2,488 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
U.S. Government sponsored agency securities | 5,001 | 6,906 |
Mortgage-backed securities - residential | 15,641 | 14,129 |
Collateralized mortgage obligations | $ 35,907 | $ 34,301 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Fair value assets transfers between level 1 to level 2 | $ 0 | $ 0 |
Fair value liabilities transfers between level 1 to level 2 | 0 | 0 |
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Liabilities measured at fair value on a nonrecurring basis | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Cash and cash equivalents | $ 86,036 | $ 77,726 |
Loans held for sale | 2,100 | 806 |
Loans receivable, net | 1,009,490 | 862,394 |
Accrued interest receivable | 3,166 | 3,068 |
Other investments: | ||
Mutual fund - CRA qualified | 3,628 | 2,488 |
Financial Liabilities: | ||
Deposit | 1,021,571 | 904,466 |
Accrued interest payable | 2,686 | 1,715 |
Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 86,036 | 77,726 |
Loans held for sale | 2,100 | 752 |
Loans receivable, net | 980,088 | 865,423 |
Accrued interest receivable | 3,166 | 3,068 |
Other investments: | ||
FHLB and PCBB stock | 5,548 | 4,772 |
Financial Liabilities: | ||
Deposit | 1,020,711 | 905,176 |
Accrued interest payable | 2,686 | 1,715 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 86,036 | 77,726 |
Accrued interest receivable | 41 | 44 |
Level 2 | ||
Financial Assets: | ||
Loans held for sale | 2,100 | 806 |
Accrued interest receivable | 243 | 240 |
Financial Liabilities: | ||
Deposit | 1,021,571 | 904,466 |
Accrued interest payable | 2,686 | 1,715 |
Level 3 | ||
Financial Assets: | ||
Loans receivable, net | 1,009,490 | 862,394 |
Accrued interest receivable | $ 2,882 | $ 2,784 |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital conservation buffer | 2.50% | 1.875% |
Capital conservation buffer description | The capital conservation buffers for 2018 and 2019 are 1.875% and 2.50%, respectively. | |
Minimum | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital required to be well capitalized | $ 3 |
Regulatory Capital Matters - Su
Regulatory Capital Matters - Summary of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 150,092 | $ 139,593 |
Tier 1 capital (to risk-weighted assets), Actual Amount | 139,975 | 129,893 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount | 139,975 | 129,893 |
Tier 1 capital (to average assets), Actual Amount | $ 139,975 | $ 129,893 |
Total capital (to risk-weighted assets), Actual Ratio | 15.18% | 16.26% |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 14.16% | 15.13% |
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio | 14.16% | 15.13% |
Tier 1 capital (to average assets), Actual Ratio | 12.14% | 12.88% |
Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 147,820 | $ 139,538 |
Tier 1 capital (to risk-weighted assets), Actual Amount | 137,703 | 129,838 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount | 137,703 | 129,838 |
Tier 1 capital (to average assets), Actual Amount | $ 137,703 | $ 129,838 |
Total capital (to risk-weighted assets), Actual Ratio | 14.96% | 16.25% |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 13.93% | 15.12% |
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio | 13.93% | 15.12% |
Tier 1 capital (to average assets), Actual Ratio | 11.95% | 12.87% |
Total capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | $ 79,069 | $ 68,686 |
Tier 1 capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | 59,301 | 51,514 |
Common equity Tier 1 capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | 44,476 | 38,636 |
Tier 1 capital (to average assets), Amount, Required for Capital Adequacy Purposes | $ 46,103 | $ 40,346 |
Total capital (to risk-weighted assets), Ratio, Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), Ratio, Required for Capital Adequacy Purposes | 6.00% | 6.00% |
Common equity Tier 1 capital (to risk-weighted assets), Ratio, Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Tier 1 capital (to average assets), Ratio, Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Total capital (to risk-weighted assets), Amount, Minimum To be Considered "Well Capitalized" | $ 98,836 | $ 85,857 |
Tier 1 capital (to risk-weighted assets), Amount, Minimum To be Considered "Well Capitalized" | 79,069 | 68,686 |
Common equity Tier 1 capital (to risk-weighted assets), Amount, Minimum To be Considered "Well Capitalized" | 64,243 | 55,807 |
Tier 1 capital (to average assets), Amount, Minimum To be Considered "Well Capitalized" | $ 57,629 | $ 50,432 |
Total capital (to risk-weighted assets), Ratio, Minimum To be Considered "Well Capitalized" | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), Ratio, Minimum To be Considered "Well Capitalized" | 8.00% | 8.00% |
Common equity Tier 1 capital (to risk-weighted assets), Ratio, Minimum To be Considered "Well Capitalized" | 6.50% | 6.50% |
Tier 1 capital (to average assets), Ratio, Minimum To be Considered "Well Capitalized" | 5.00% | 5.00% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic | |||||||||||
Net income | $ 4,181 | $ 4,000 | $ 3,836 | $ 4,740 | $ 3,765 | $ 3,481 | $ 3,791 | $ 3,216 | $ 16,757 | $ 14,253 | $ 9,236 |
Undistributed earnings allocated to participating securities | (383) | (422) | (366) | ||||||||
Net income allocated to common shares | $ 16,374 | $ 13,831 | $ 8,870 | ||||||||
Weighted average common shares outstanding | 15,741,926 | 15,104,939 | 13,063,344 | ||||||||
Basic earnings per common share | $ 0.26 | $ 0.25 | $ 0.24 | $ 0.29 | $ 0.23 | $ 0.22 | $ 0.24 | $ 0.23 | $ 1.04 | $ 0.92 | $ 0.68 |
Diluted | |||||||||||
Net income allocated to common shares | $ 16,374 | $ 13,831 | $ 8,870 | ||||||||
Weighted average common shares outstanding | 15,741,926 | 15,104,939 | 13,063,344 | ||||||||
Add: Dilutive effects of assumed exercises of stock options | 193,388 | 446,124 | 422,447 | ||||||||
Average shares and dilutive potential common shares | 15,935,314 | 15,551,063 | 13,485,791 | ||||||||
Diluted earnings per common share | $ 0.26 | $ 0.24 | $ 0.23 | $ 0.29 | $ 0.23 | $ 0.21 | $ 0.23 | $ 0.22 | $ 1.03 | $ 0.89 | $ 0.66 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares of common stock excluded from computation of earnings per share | 0 | 0 | |
Stock Options and Restricted Stock Awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares of common stock excluded from computation of earnings per share | 220,000 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Condensed Financial Statements of Parent Company (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 86,036 | $ 77,726 | ||
Other assets | 8,094 | 7,935 | ||
Total assets | 1,179,520 | 1,044,186 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Shareholders’ equity | 140,576 | 129,787 | $ 91,480 | $ 81,284 |
Total liabilities and shareholders' equity | 1,179,520 | 1,044,186 | ||
Parent Company | ||||
ASSETS | ||||
Investment in bank subsidiary | 138,304 | 129,732 | ||
Cash and cash equivalents | 2,219 | |||
Other assets | 141 | 55 | ||
Total assets | 140,664 | 129,787 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Accounts payable and other liabilities | 88 | |||
Shareholders’ equity | 140,576 | 129,787 | ||
Total liabilities and shareholders' equity | $ 140,664 | $ 129,787 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Condensed Financial Statements Company (Condensed Statements of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements Captions [Line Items] | |||||||||||
Income before income taxes | $ 5,515 | $ 5,238 | $ 5,065 | $ 6,258 | $ 5,188 | $ 4,625 | $ 5,259 | $ 4,385 | $ 22,076 | $ 19,457 | $ 17,128 |
Income tax benefit | 1,334 | 1,238 | 1,229 | 1,518 | 1,423 | 1,144 | 1,468 | 1,169 | 5,319 | 5,204 | 7,892 |
Net income | $ 4,181 | $ 4,000 | $ 3,836 | $ 4,740 | $ 3,765 | $ 3,481 | $ 3,791 | $ 3,216 | 16,757 | 14,253 | 9,236 |
Other comprehensive income (loss), net of tax | 736 | (198) | (135) | ||||||||
Comprehensive income | 17,493 | 14,055 | 9,101 | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||
Other expense | 1,011 | 134 | 38 | ||||||||
Income before income taxes | (1,011) | (134) | (38) | ||||||||
Income tax benefit | (288) | (40) | (16) | ||||||||
Equity in undistributed subsidiary income | 17,480 | 14,347 | 9,258 | ||||||||
Net income | 16,757 | 14,253 | 9,236 | ||||||||
Other comprehensive income (loss), net of tax | 736 | (198) | (135) | ||||||||
Comprehensive income | $ 17,493 | $ 14,055 | $ 9,101 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Condensed Financial Statements of Parent Company (Condensed Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 16,757 | $ 14,253 | $ 9,236 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Other assets | 189 | 695 | (2,898) |
Net cash from operating activities | 18,163 | 30,605 | (2,147) |
Cash flows from investing activities | |||
Net cash from investing activities | (117,409) | (146,282) | (81,678) |
Cash flows from financing activities | |||
Repurchase of common stock | (5,391) | ||
Cash dividend paid on common stock | (3,151) | ||
Net cash from financing activities | 107,556 | 130,153 | 126,949 |
Net change in cash and cash equivalents | 8,310 | 14,476 | 43,124 |
Cash and cash equivalents at beginning of period | 77,726 | 63,250 | 20,126 |
Cash and cash equivalents at end of period | 86,036 | 77,726 | 63,250 |
Parent Company | |||
Cash flows from operating activities | |||
Net income | 16,757 | 14,253 | 9,236 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Equity in undistributed subsidiary income | (17,480) | (14,347) | (9,258) |
Other assets | 6 | $ 94 | $ 22 |
Change in accounts payable and other liabilities | 88 | ||
Net cash from operating activities | (629) | ||
Cash flows from financing activities | |||
Repurchase of common stock | (5,391) | ||
Cash dividend paid on common stock | (3,151) | ||
Proceeds from subsidiaries | 11,390 | ||
Net cash from financing activities | 2,848 | ||
Net change in cash and cash equivalents | 2,219 | ||
Cash and cash equivalents at end of period | $ 2,219 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summarized Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 14,703 | $ 15,112 | $ 14,878 | $ 14,086 | $ 13,820 | $ 13,006 | $ 12,062 | $ 11,180 | $ 58,779 | $ 50,068 | $ 40,283 |
Interest expense | 3,625 | 3,893 | 3,701 | 3,288 | 2,894 | 2,521 | 2,075 | 1,621 | 14,507 | 9,111 | 4,573 |
Net interest income | 11,078 | 11,219 | 11,177 | 10,798 | 10,926 | 10,485 | 9,987 | 9,559 | 44,272 | 40,957 | 35,710 |
Provision for loan losses | 411 | 290 | 401 | 220 | 439 | 33 | 575 | 1,102 | 1,267 | 1,311 | |
Net interest income after provision for loan losses | 10,667 | 10,929 | 10,776 | 10,798 | 10,706 | 10,046 | 9,954 | 8,984 | 43,170 | 39,690 | 34,399 |
Noninterest income | 2,513 | 2,733 | 2,647 | 3,533 | 2,050 | 2,284 | 2,783 | 2,212 | 11,426 | 9,329 | 8,986 |
Noninterest expense | 7,665 | 8,424 | 8,358 | 8,073 | 7,568 | 7,705 | 7,478 | 6,811 | 32,520 | 29,562 | 26,257 |
Income before income taxes | 5,515 | 5,238 | 5,065 | 6,258 | 5,188 | 4,625 | 5,259 | 4,385 | 22,076 | 19,457 | 17,128 |
Provision for income taxes | 1,334 | 1,238 | 1,229 | 1,518 | 1,423 | 1,144 | 1,468 | 1,169 | 5,319 | 5,204 | 7,892 |
Net income | $ 4,181 | $ 4,000 | $ 3,836 | $ 4,740 | $ 3,765 | $ 3,481 | $ 3,791 | $ 3,216 | $ 16,757 | $ 14,253 | $ 9,236 |
Basic earnings per common share | $ 0.26 | $ 0.25 | $ 0.24 | $ 0.29 | $ 0.23 | $ 0.22 | $ 0.24 | $ 0.23 | $ 1.04 | $ 0.92 | $ 0.68 |
Diluted earnings per common share | $ 0.26 | $ 0.24 | $ 0.23 | $ 0.29 | $ 0.23 | $ 0.21 | $ 0.23 | $ 0.22 | $ 1.03 | $ 0.89 | $ 0.66 |