Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | OPBK | |
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 | 15,052,746 | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | CA | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 110,999 | $ 86,036 |
Securities available for sale, at fair value | 52,179 | 56,549 |
Other investments | 9,253 | 9,176 |
Loans held for sale | 4,382 | 2,100 |
Loans receivable, net of allowance of $10,748 at March 31, 2020 and $10,050 at December 31, 2019 | 985,811 | 980,088 |
Premises and equipment, net | 5,141 | 5,226 |
Accrued interest receivable | 3,056 | 3,166 |
Servicing assets | 6,963 | 7,024 |
Company owned life insurance (COLI) | 10,683 | 10,618 |
Deferred tax assets | 2,709 | 3,189 |
Operating right-of-use assets | 7,885 | 8,254 |
Other assets | 10,532 | 8,094 |
Total assets | 1,209,593 | 1,179,520 |
Deposits: | ||
Noninterest bearing | 304,845 | 294,281 |
Interest bearing: | ||
Savings | 5,220 | 4,753 |
Money market and others | 291,137 | 291,865 |
Time deposits greater than $250,000 | 210,507 | 213,345 |
Other time deposits | 240,489 | 216,467 |
Total deposits | 1,052,198 | 1,020,711 |
Accrued interest payable | 2,592 | 2,686 |
Operating lease liabilities | 9,701 | 10,126 |
Other liabilities | 7,003 | 5,421 |
Total liabilities | 1,071,494 | 1,038,944 |
Shareholders’ equity | ||
Preferred stock – no par value; 10,000,000 shares authorized; no shares issued or outstanding at March 31, 2020 and December 31, 2019 | ||
Common stock – no par value; 50,000,000 shares authorized; 15,115,868 and 15,703,276 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 80,422 | 86,381 |
Additional paid-in capital | 7,882 | 7,524 |
Retained earnings | 48,695 | 46,483 |
Accumulated other comprehensive loss | 1,100 | 188 |
Total shareholders’ equity | 138,099 | 140,576 |
Total liabilities and shareholders' equity | $ 1,209,593 | $ 1,179,520 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Loans receivable, allowance | $ 10,748 | $ 10,050 |
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 | 15,115,868 | 15,703,276 |
Common stock, shares, outstanding | 15,115,868 | 15,703,276 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income | ||
Interest and fees on loans | $ 13,694 | $ 13,354 |
Interest on investment securities | 319 | 360 |
Other interest income | 332 | 372 |
Total interest income | 14,345 | 14,086 |
Interest expense | ||
Interest on deposits | 3,229 | 3,288 |
Total interest expense | 3,229 | 3,288 |
Net interest income | 11,116 | 10,798 |
Provision for loan losses | 743 | |
Net interest income after provision for loan losses | 10,373 | 10,798 |
Noninterest income | ||
Service charges on deposits | 430 | 527 |
Loan servicing fees, net of amortization | 392 | 383 |
Gain on sale of loans | 1,155 | 1,077 |
Other income | 319 | 1,546 |
Total noninterest income | 2,296 | 3,533 |
Noninterest expense | ||
Salaries and employee benefits | 5,071 | 5,168 |
Occupancy and equipment | 1,230 | 1,077 |
Data processing and communication | 409 | 358 |
Professional fees | 273 | 203 |
FDIC insurance and regulatory assessments | 106 | 104 |
Promotion and advertising | 162 | 178 |
Directors’ fees | 233 | 228 |
Foundation donation and other contributions | 330 | 388 |
Other expenses | 393 | 369 |
Total noninterest expense | 8,207 | 8,073 |
Income before income taxes | 4,462 | 6,258 |
Income tax expense | 1,163 | 1,518 |
Net income | $ 3,299 | $ 4,740 |
Earnings per share - Basic | $ 0.21 | $ 0.29 |
Earnings per share - Diluted | $ 0.21 | $ 0.29 |
Other comprehensive income: | ||
Change in unrealized income on securities available for sale | $ 1,294 | $ 503 |
Tax effect | (382) | (149) |
Total other comprehensive income | 912 | 354 |
Comprehensive income | $ 4,211 | $ 5,094 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2018 | $ 129,787 | $ 91,209 | $ 6,249 | $ 32,877 | $ (548) |
Beginning balance, shares at Dec. 31, 2018 | 15,860,306 | ||||
Net income | 4,740 | 4,740 | |||
Stock issued under stock-based compensation plans | 292 | $ 292 | |||
Stock issued under stock-based compensation plans, shares | 118,162 | ||||
Stock-based compensation | 377 | 377 | |||
Repurchase of common stock | (2,381) | $ (2,381) | |||
Repurchase of common stock, shares | (258,885) | ||||
Cash dividends declared | (793) | (793) | |||
Change in unrealized loss on securities available for sale net of reclassifications and tax effects | 354 | 354 | |||
Ending balance at Mar. 31, 2019 | 132,376 | $ 89,120 | 6,626 | 36,824 | (194) |
Ending balance, shares at Mar. 31, 2019 | 15,719,583 | ||||
Beginning balance at Dec. 31, 2019 | 140,576 | $ 86,381 | 7,524 | 46,483 | 188 |
Beginning balance, shares at Dec. 31, 2019 | 15,703,276 | ||||
Net income | 3,299 | 3,299 | |||
Stock issued under stock-based compensation plans | 305 | $ 305 | |||
Stock issued under stock-based compensation plans, shares | 130,046 | ||||
Stock-based compensation | 358 | 358 | |||
Repurchase of common stock | (6,264) | $ (6,264) | |||
Repurchase of common stock, shares | (717,454) | ||||
Cash dividends declared | (1,087) | (1,087) | |||
Change in unrealized loss on securities available for sale net of reclassifications and tax effects | 912 | 912 | |||
Ending balance at Mar. 31, 2020 | $ 138,099 | $ 80,422 | $ 7,882 | $ 48,695 | $ 1,100 |
Ending balance, shares at Mar. 31, 2020 | 15,115,868 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 3,299 | $ 4,740 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Provision for loan losses | 743 | |
Depreciation and amortization of premises and equipment | 329 | 268 |
Amortization of net premiums on securities | 58 | 53 |
Stock-based compensation | 358 | 377 |
Gain on sales of loans | (1,155) | (1,077) |
Earnings on company owned life insurance (COLI) | (65) | (1,308) |
Origination of loans held for sale | (20,566) | (18,044) |
Proceeds from sales of loans held for sale | 19,012 | 19,165 |
Amortization of servicing assets | 467 | 403 |
Net change in fair value of equity investment with readily determinable fair value | (77) | (46) |
Net change in: | ||
Accrued interest receivable | 110 | (300) |
Deferred tax assets | 98 | 7 |
Other assets | 1,041 | (80) |
Accrued interest payable | (94) | 463 |
Other liabilities | (1,192) | (1,967) |
Net cash from operating activities | 2,366 | 2,654 |
Cash flows from investing activities | ||
Net change in loans receivable | (6,445) | (39,168) |
Proceeds from matured, called, or paid-down securities available for sale | 5,605 | 1,670 |
Proceeds from COLI | 2,288 | |
Purchase of premises and equipment, net | (245) | (718) |
Investment in low income housing partnership | 759 | |
Net cash from investing activities | (1,844) | (35,928) |
Cash flows from financing activities | ||
Net change in deposits | 31,487 | 24,226 |
Cash received from stock option exercises | 305 | 292 |
Repurchase of common stock | (6,264) | (2,381) |
Cash dividend paid on common stock | (1,087) | (793) |
Net cash from financing activities | 24,441 | 21,344 |
Net change in cash and cash equivalents | 24,963 | (11,930) |
Cash and cash equivalents at beginning of period | 86,036 | 77,726 |
Cash and cash equivalents at end of period | 110,999 | 65,796 |
Supplemental cash flow information | ||
Income taxes | 1,335 | 465 |
Interest | 3,323 | 2,825 |
Supplemental noncash disclosure: | ||
Transfer from loan receivable to OREO | 1,146 | |
The adoption of ASU 2016-02, leases (Topic 842) recognition right-of-use assets | 7,885 | |
New commitments to low income housing partnership investments | $ 3,477 | |
ASU 2016-02 | ||
Supplemental noncash disclosure: | ||
The adoption of ASU 2016-02, leases (Topic 842) recognition right-of-use assets | $ 8,057 |
Business Description
Business Description | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Description | Note 1. Business Description OP Bancorp (the “Company”) is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Company 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 the Company. The Company 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, the Company operates primarily in the traditional banking business arena that includes accepting deposits and making loans and investments. The Company’s primary deposit products are demand and time deposits, and the primary lending products are commercial business loans to small to medium sized businesses. The Company is operating with nine full service branches, eight of which are located in California, in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park and Santa Clara. The Company opened a ninth full service branch in Carrollton, Texas in April, 2019. The Company also has four loan production offices in Atlanta, Georgia, Aurora, Colorado, and Lynwood and Seattle, Washington . 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation: The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented, including eliminating intercompany transactions and balances. The results of operations for the interim periods are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. 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. The Company could experience a material adverse effect on its business as a result of the impact of the novel coronavirus pandemic (“COVID-19”) and the resulting governmental actions to curtail its spread. It is at least reasonably possible that the estimates based on information which was available at the date of the financial statements will change in the near term due to the COVID-19 pandemic and that the effect of the change would be material to the financial statements, including the allowance for loan losses. The extent to which the COVID-19 pandemic will impact our estimates and assumptions is highly uncertain and we are unable to make an estimate, at this time. 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. There has been no significant or material changes to the Company’s accounting policies during the three months ended March 31, 2020, as compared to the Summary of Significant Accounting Policies as described in “Note 1 of the Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2019. Recent Accounting Pronouncements: 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. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as troubled debt restructurings (“TDRs”). The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. This interagency guidance is expected to reduce the number of TDRs that will be reported in future periods; however, the amount is indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 3. 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 as of March 31, 2020 and December 31, 2019: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value As of March 31, 2020: (Dollars in thousands) Available for sale: U.S. Government sponsored agency securities $ 3,000 $ 25 $ — $ 3,025 Mortgage-backed securities: residential 14,900 403 — 15,303 Collateralized mortgage obligations: residential 32,718 1,133 — 33,851 Total available for sale $ 50,618 $ 1,561 $ — $ 52,179 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value As of December 31, 2019: (Dollars in thousands) 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 There were no sales of securities available for sale in the three months ended March 31, 2020 or 2019. The amortized cost and estimated fair value of securities available for sale at March 31, 2020, by contractual maturity, are shown below. Securities without a contractual maturity are shown separately. Amortized Cost Fair Value As of March 31, 2020: (Dollars in thousands) Available for sale: Within one year $ 2,000 $ 2,010 One to five years 1,000 1,015 Mortgage-backed securities: residential 14,900 15,303 Collateralized mortgage obligations 32,718 33,851 Total available for sale $ 50,618 $ 52,179 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 March 31, 2020 and December 31, 2019, 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. There were no securities with unrealized losses as of March 31, 2020. The following table summarizes securities with unrealized losses as of December 31, 2019, 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 As of December 31, 2019: (Dollars in thousands) 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 8,878 (29 ) 3,658 (30 ) 12,536 (59 ) Total available for sale $ 8,878 $ (29 ) $ 8,911 $ (43 ) $ 17,789 $ (72 ) 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. As of March 31, 2020 , management believes no securities with unrealized losses were OTTI. There were no securities pledged as collateral as of March 31, 2020 or December 31, 2019. Other investments as of March 31, 2020 and December 31, 2019, consisted of the following: March 31, 2020 December 31, 2019 (Dollars in thousands) FHLB stock $ 5,358 $ 5,358 PCBB stock 190 190 Mutual fund - CRA qualified 3,705 3,628 Total other investments $ 9,253 $ 9,176 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans | Note 4. Loans The composition of the loan portfolio was as follows at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (Dollars in thousands) Real estate: Commercial real estate $ 639,411 $ 630,668 SBA loans—real estate 123,795 122,373 Total real estate 763,206 753,041 SBA loans—non-real estate 10,114 9,895 Commercial and industrial 99,860 103,852 Home mortgage 119,984 120,686 Consumer 3,395 2,664 Gross loans receivable 996,559 990,138 Allowance for loan losses (10,748 ) (10,050 ) Loans receivable, net $ 985,811 $ 980,088 No loans were outstanding to related parties as of March 31, 2020 or December 31, 2019. The activity in the allowance for loan losses for the three months ended March 31, 2020 and 2019 was as follows: SBA Commercial SBA Loans Loans Non- Commercial Home Real Estate Real Estate Real Estate and Industrial Mortgage Consumer Total (Dollars in thousands) Three months ended March 31, 2020: Beginning balance $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 Provision for loan losses 210 143 116 3 254 17 743 Charge-offs — — (45 ) — — — (45 ) Recoveries — — — — — — — Ending balance $ 6,210 $ 1,082 $ 192 $ 1,292 $ 1,921 $ 51 $ 10,748 Three months ended March 31, 2019: Beginning balance $ 4,805 $ 894 $ 505 $ 1,746 $ 1,653 $ 33 $ 9,636 Provision for loan losses 391 53 (376 ) (73 ) 7 (2 ) — Charge-offs — (17 ) — — — — (17 ) Recoveries — — — — — — — Ending balance $ 5,196 $ 930 $ 129 $ 1,673 $ 1,660 $ 31 $ 9,619 The following table presents the balance in the allowance for loan losses and the recorded investment in loans (including accrued interest receivable of $2.8 million and $2.9 million as of March 31, 2020 and December 31, 2019, respectively) by portfolio segment as of March 31, 2020 and December 31, 2019: Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total As of March 31, 2020: (Dollars in thousands) Allowance for loan losses: Commercial real estate $ — $ 6,210 $ 6,210 SBA loans—real estate — 1,082 1,082 SBA loans—non-real estate 60 132 192 Commercial and industrial 330 962 1,292 Home mortgage — 1,921 1,921 Consumer — 51 51 Total $ 390 $ 10,358 $ 10,748 Loans: Commercial real estate $ — $ 640,889 $ 640,889 SBA loans—real estate 476 123,914 124,390 SBA loans—non-real estate 159 10,011 10,170 Commercial and industrial 330 99,728 100,058 Home mortgage — 120,468 120,468 Consumer — 3,403 3,403 Total $ 965 $ 998,413 $ 999,378 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 The following table presents information related to impaired loans by class of loans as of and for the three months ended March 31, 2020 and 2019. 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 As of and for the three months ended March 31, 2020: (Dollars in thousands) With no related allowance recorded: SBA loans—real estate $ 476 $ — $ 480 $ — SBA loans—non-real estate 33 — 33 — With an allowance recorded: SBA loans—non-real estate 126 60 126 9 Commercial and industrial 330 330 331 4 Total $ 965 $ 390 $ 970 $ 13 As of and for the three months ended March 31, 2019: With no related allowance recorded: SBA loans—real estate $ 510 $ — $ 516 $ — SBA loans—non-real estate 49 — 53 — Commercial and industrial 680 — 680 — With an allowance recorded: Commercial and industrial 834 834 835 13 Total $ 2,073 $ 834 $ 2,084 $ 13 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, as of March 31, 2020 and December 31, 2019: Nonaccrual Loans >90 Days Past Due & Still Accruing Total As of March 31, 2020: (Dollars in thousands) SBA loans—real estate $ 476 $ — $ 476 SBA loans—non-real estate 33 — 33 Home mortgage 694 — 694 Total $ 1,203 $ — $ 1,203 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 Nonaccrual loans and loans past due greater than 90 days still accruing interest 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 as of March 31, 2020 and December 31, 2019: 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Loans Not Past Due Total As of March 31, 2020: (Dollars in thousands) Commercial real estate $ — $ — $ — $ — $ 640,889 $ 640,889 SBA—real estate — 1,545 476 2,021 122,369 124,390 SBA—non-real estate — 2 33 35 10,135 10,170 Commercial and industrial — 356 — 356 99,702 100,058 Home mortgage 1,789 373 454 2,616 117,852 120,468 Consumer — — — — 3,403 3,403 $ 1,789 $ 2,276 $ 963 $ 5,028 $ 994,350 $ 999,378 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 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 three months ended March 31, 2020 or 2019. There were no payment defaults during the three months ended March 31, 2020 or 2019 of loans that had been modified as troubled debt restructurings within the previous twelve months. Loan payment deferrals PPP loans The Paycheck Protection Program and Health Care Enhancement Act (“PPP / HCEA Act”), which was signed into law on April 24, 2020, authorized additional funding under the CARES Act of $310 billion for PPP loans to be issued by financial institutions through the SBA. As of April 30, 2020, the Company approved 530 applications for an aggregate of $27.8 million under the PPP / HCEA Act. 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 March 31, 2020 and December 31, 2019, 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 As of March 31, 2020: (Dollars in thousands) Commercial real estate $ 640,889 $ — $ — $ — $ 640,889 SBA loans—real estate 121,603 766 2,021 — 124,390 SBA loans—non-real estate 9,998 13 159 — 10,170 Commercial and industrial 94,611 4,761 686 — 100,058 Home mortgage 119,774 — 694 — 120,468 Consumer 3,403 — — — 3,403 $ 990,278 $ 5,540 $ 3,560 (1) $ — $ 999,378 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 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 5. Leases 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 March 31, 2020 . 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 March 31, 2020 , operating right-of-use (“ROU”) assets and related liabilities were $7.9 million and $9.7 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 March 31, 2020 . 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 the lease 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: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Operating lease cost $ 444 $ 403 Variable lease cost 184 161 Total lease cost $ 628 $ 564 The table below summarizes other information related to the Company’s operating leases: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 500 $ 436 Weighted average remaining lease term - operating leases 5.5 6.1 Weighted average discount rate - operating leases 2.98 % 2.99 % Rent expense was $628,000 and $564,000 for the three months ended March 31, 2020 and 2019, 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 March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, 2020 2020 remaining $ 1,502 2021 2,032 2022 2,028 2023 1,816 2024 1,702 Thereafter 1,641 Total lease payments 10,721 Discount to present value (1,020 ) Total lease liability $ 9,701 (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 | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 6. Premises and equipment The Company’s premises and equipment consisted of the following as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (Dollars in thousands) Leasehold improvements $ 6,734 $ 6,571 Furniture and fixtures 3,201 3,174 Equipment and others 2,463 2,414 Total cost 12,398 12,159 Accumulated depreciation (7,257 ) (6,933 ) Net book value $ 5,141 $ 5,226 Total depreciation expense included in occupancy and equipment expenses was $329,000 and $268,000 for the three months ended March 31, 2020 and 2019, respectively. |
Servicing Assets
Servicing Assets | 3 Months Ended |
Mar. 31, 2020 | |
Servicing Asset [Abstract] | |
Servicing Assets | Note 7. Servicing Assets Activity for loan servicing assets during the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Beginning balance $ 7,024 $ 6,987 Additions 406 462 Amortized to expense (467 ) (403 ) Ending balance $ 6,963 $ 7,046 There was no valuation allowance recorded against the carrying value of the servicing assets as of March 31, 2020 or 2019. The fair value of the servicing assets was $8.0 million at March 31, 2020, which was determined using discount rates ranging from 5.7% to 11.9% and prepayment speeds ranging from 15.0% to 15.1%, depending on the stratification of the specific assets. The fair value of the servicing assets was $8.5 million at March 31, 2019, which was determined using discount rates ranging from 5.7% to 11.4% and prepayment speeds ranging from 12.1% to 12.8%, depending on the stratification of the specific assets. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Banking And Thrift [Abstract] | |
Deposits | Note 8. Deposits The scheduled maturities of time deposits were as follows as of March 31, 2020: March 31, 2020 (Dollars in thousands) 2020 remaining $ 356,851 2021 91,198 2022 1,701 2023 855 2024 359 Thereafter 32 Total $ 450,996 Deposits from principal officers, directors, and their affiliates as of March 31, 2020 and December 31, 2019 were $1.1 million and $1.6 million, respectively. |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Note 9. Borrowing arrangements As of March 31, 2020, the Company had no The Company had available borrowings from the following institutions as of March 31, 2020: March 31, 2020 (Dollars in thousands) Federal Home Loan Bank—San Francisco $ 245,845 Federal Reserve Bank 128,204 Pacific Coast Bankers Bank 8,000 Zions Bank 25,000 Total $ 407,049 The Company has pledged approximately $851.4 million of loans as collateral for these lines of credit as of March 31, 2020. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The Company’s income tax expense was $1.2 million and $1.5 million for the three months ended March 31, 2020 and 2019, respectively. The effective income tax rate was 26.1% and 24.3% for the three months ended March 31, 2020 and 2019, respectively. 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 March 31, 2020 and 2019, and the Company does not expect any significant increase in unrealized tax benefits in the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. 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: March 31, 2020 December 31, 2019 (Dollars in thousands) Commitments to extend credit $ 68,917 $ 66,153 Standby letter of credit 7,327 7,377 Commercial letter of credit 685 1,111 Total undisbursed loan commitments $ 76,929 $ 74,641 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. Investments in low income housing partnership March 31, 2020 December 31, 2019 (Dollars in thousands) Investments in low income housing partnerships $ 5,142 $ 1,719 Unfunded commitments to fund investments for low income housing partnerships 2,788 70 These balances are reflected in the other assets and other liabilities line on the consolidated balance sheets. The Company expects to fulfill these commitments during the year ending 2034. During the three months ended March 31, 2020 and 2019, the Company recognized amortization expense of $54,000 each for those periods, which was included within income tax expense on the consolidated statements of income. Additionally, during the three months ended March 31, 2020 and 2019, the Company recognized tax credits and other benefits from the investments in low income housing partnerships of $50,000 and $51,000, respectively. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Note 12. Stock-based Compensation The Company has two stock-based compensation plans currently in effect as of March 31, 2020, as described further below. Total compensation cost that has been charged against earnings for these plans was $358,000 and $377,000 in the three months ended March 31, 2020 and 2019, respectively. 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 three months ended March 31, 2020 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except per share data) Outstanding, as of January 1, 2020 155,000 $ 4.70 Options granted — — Options exercised (55,000 ) 1.15 Options forfeited — — Options expired — — Outstanding, as of March 31, 2020 100,000 5.77 $ 171 Fully vested and expected to vest 100,000 5.77 $ 171 Vested 100,000 $ 5.77 $ 171 Information related to the 2005 Plan for the periods indicated follows: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Intrinsic value of options exercised $ 370 $ 387 Cash received from option exercises 63 107 Tax benefit realized from option exercised 15 — The weighted average remaining contractual term of stock options outstanding under the 2005 Plan at March 31, 2020 was 3.40 years. The weighted average remaining contractual term of stock options that were exercisable at March 31, 2020 was 3.40 years. All of the stock options that are outstanding under the 2005 Plan were fully vested as of March 31, 2020. 2010 Plan The exercise prices of stock options granted under the plan may not be less than 100% 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 the three months ended March 31, 2020 or 2019. Restricted stock awards issued under the 2010 Plan may or may not be subject to vesting provisions. No awards were granted in the three months ended March 31, 2020. Awards which were granted in the three months ended March 31, 2019 vest at the end of three 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 stock options outstanding under the 2010 Plan for the three months ended March 31, 2020 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except per share data) Outstanding, as of January 1, 2020 365,000 $ 5.78 Options granted — — Options exercised (85,000 ) 2.85 Options forfeited — — Options expired — — Outstanding, as of March 31, 2020 280,000 6.66 $ 336 Fully vested and expected to vest 265,000 6.59 $ 336 Vested 220,000 $ 6.30 $ 336 Information related to stock options exercised under the 2010 Plan for the periods indicated follows: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Intrinsic value of options exercised $ 519 $ 396 Cash received from option exercises 242 185 Tax benefit realized from option exercised 134 102 The weighted average remaining contractual term of stock options outstanding under the 2010 Plan at March 31, 2020 was 3.15 years. The weighted average remaining contractual term of stock options that were exercisable at March 31, 2020 was 2.92 years. A summary of the changes in the Company’s non-vested restricted stock awards under the 2010 Plan for the three months ended March 31, 2020 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, 2020 294,500 $ 9.20 Awards granted — — Awards vested — — Awards forfeited — — Non-vested, as of March 31, 2020 294,500 $ 9.20 $ 2,197 There were no vested restricted stock awards for the three months ended March 31, 2020, or 2019. There were 95,427 shares available for grant under the 2010 Plan as of March 31, 2020 (in either stock options or restricted stock awards). As of March 31, 2020, the Company had approximately $1.4 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 1.07 years. |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 13. 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 $180,000 and $137,000 for the three months ended March 31, 2020 and 2019, respectively. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 14. 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 bank 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 bank 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 | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 15. 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 Other Investment 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 as of March 31, 2020 and December 31, 2019 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 March 31, 2020 : U.S. Government sponsored agency securities $ 3,025 $ — $ 3,025 $ — Mortgage-backed securities - residential 15,303 — 15,303 — Collateralized mortgage obligations 33,851 — 33,851 — Other investments: Mutual fund - CRA qualified 3,705 3,705 — — 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 — — There were no transfers between Level 1 and Level 2 in the three months ended March 31, 2020 or 2019. There were no assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2020 or December 31, 2019. Financial Instruments Carrying Amount Level 1 Level 2 Level 3 Value As of March 31, 2020: (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 110,999 $ 110,999 $ — $ — $ 110,999 Loans held for sale 4,382 — 4,754 — 4,754 Loans receivable, net 985,811 — — 980,882 980,882 Accrued interest receivable 3,056 9 228 2,819 3,056 Other investments: FHLB and PCBB stock 5,548 N/A N/A N/A N/A Financial Liabilities: Deposit $ 1,052,198 $ — $ 1,054,002 $ — $ 1,054,002 Accrued interest payable 2,592 — 2,592 — 2,592 The carrying amounts and estimated fair values of financial instruments not carried at fair value at December 31, 2019 are as follows: Carrying Amount Level 1 Level 2 Level 3 Value As of December 31, 2019: (Dollars in thousands) 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 |
Regulatory Capital Matters
Regulatory Capital Matters | 3 Months Ended |
Mar. 31, 2020 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Matters | Note 16. Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer was 0.625% in 2016 and increased 0.625% annually until 2019. As of Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At March 31, 2020 and December 31, 2019, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Actual and required capital amounts (in thousands) and ratios, exclusive of the capital conservation buffer, are presented below as of March 31, 2020 and December 31, 2019: Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2020: Total capital (to risk-weighted assets) Consolidated $ 147,410 14.78 % N/A N/A N/A N/A Bank 145,465 14.59 % 79,782 8.00 % 99,727 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 136,594 13.69 % N/A N/A N/A N/A Bank 134,649 13.50 % 59,836 6.00 % 79,782 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 136,594 13.69 % N/A N/A N/A N/A Bank 134,649 13.50 % 44,877 4.50 % 64,823 6.50 % Tier 1 capital (to average assets) Consolidated 136,594 11.59 % N/A N/A N/A N/A Bank 134,649 11.42 % 47,143 4.00 % 58,929 5.00 % Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio 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 % |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 17. 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: Three Months Ended March 31, (Dollars in thousands, except share data) 2020 2019 Basic Net income $ 3,299 $ 4,740 Undistributed earnings allocated to participating securities (62 ) (127 ) Net income allocated to common shares 3,237 4,613 Weighted average common shares outstanding 15,486,549 15,817,060 Basic earnings per common share $ 0.21 $ 0.29 Diluted Net income allocated to common shares $ 3,237 $ 4,613 Weighted average common shares outstanding for basic earnings per common share 15,486,549 15,817,060 Add: Dilutive effects of assumed exercises of stock options 99,706 295,665 Average shares and dilutive potential common shares 15,586,255 16,112,725 Diluted earnings per common share $ 0.21 $ 0.29 No shares of common stock were antidilutive for the three months ended March 31, 2020. Stock options and restricted stock awards for 145,000 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2019 because they were antidilutive. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented, including eliminating intercompany transactions and balances. The results of operations for the interim periods are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
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. The Company could experience a material adverse effect on its business as a result of the impact of the novel coronavirus pandemic (“COVID-19”) and the resulting governmental actions to curtail its spread. It is at least reasonably possible that the estimates based on information which was available at the date of the financial statements will change in the near term due to the COVID-19 pandemic and that the effect of the change would be material to the financial statements, including the allowance for loan losses. The extent to which the COVID-19 pandemic will impact our estimates and assumptions is highly uncertain and we are unable to make an estimate, at this time. |
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. There has been no significant or material changes to the Company’s accounting policies during the three months ended March 31, 2020, as compared to the Summary of Significant Accounting Policies as described in “Note 1 of the Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2019. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: 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. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as troubled debt restructurings (“TDRs”). The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. This interagency guidance is expected to reduce the number of TDRs that will be reported in future periods; however, the amount is indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 as of March 31, 2020 and December 31, 2019: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value As of March 31, 2020: (Dollars in thousands) Available for sale: U.S. Government sponsored agency securities $ 3,000 $ 25 $ — $ 3,025 Mortgage-backed securities: residential 14,900 403 — 15,303 Collateralized mortgage obligations: residential 32,718 1,133 — 33,851 Total available for sale $ 50,618 $ 1,561 $ — $ 52,179 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value As of December 31, 2019: (Dollars in thousands) 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 |
Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale | There were no sales of securities available for sale in the three months ended March 31, 2020 or 2019. The amortized cost and estimated fair value of securities available for sale at March 31, 2020, by contractual maturity, are shown below. Securities without a contractual maturity are shown separately. Amortized Cost Fair Value As of March 31, 2020: (Dollars in thousands) Available for sale: Within one year $ 2,000 $ 2,010 One to five years 1,000 1,015 Mortgage-backed securities: residential 14,900 15,303 Collateralized mortgage obligations 32,718 33,851 Total available for sale $ 50,618 $ 52,179 |
Schedule of Securities With Unrealized Losses | There were no securities with unrealized losses as of March 31, 2020. The following table summarizes securities with unrealized losses as of December 31, 2019, 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 As of December 31, 2019: (Dollars in thousands) 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 8,878 (29 ) 3,658 (30 ) 12,536 (59 ) Total available for sale $ 8,878 $ (29 ) $ 8,911 $ (43 ) $ 17,789 $ (72 ) |
Schedule of Other Investments | Other investments as of March 31, 2020 and December 31, 2019, consisted of the following: March 31, 2020 December 31, 2019 (Dollars in thousands) FHLB stock $ 5,358 $ 5,358 PCBB stock 190 190 Mutual fund - CRA qualified 3,705 3,628 Total other investments $ 9,253 $ 9,176 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The composition of the loan portfolio was as follows at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (Dollars in thousands) Real estate: Commercial real estate $ 639,411 $ 630,668 SBA loans—real estate 123,795 122,373 Total real estate 763,206 753,041 SBA loans—non-real estate 10,114 9,895 Commercial and industrial 99,860 103,852 Home mortgage 119,984 120,686 Consumer 3,395 2,664 Gross loans receivable 996,559 990,138 Allowance for loan losses (10,748 ) (10,050 ) Loans receivable, net $ 985,811 $ 980,088 |
Schedule of Activity in Allowance for Loan Losses | The activity in the allowance for loan losses for the three months ended March 31, 2020 and 2019 was as follows: SBA Commercial SBA Loans Loans Non- Commercial Home Real Estate Real Estate Real Estate and Industrial Mortgage Consumer Total (Dollars in thousands) Three months ended March 31, 2020: Beginning balance $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 Provision for loan losses 210 143 116 3 254 17 743 Charge-offs — — (45 ) — — — (45 ) Recoveries — — — — — — — Ending balance $ 6,210 $ 1,082 $ 192 $ 1,292 $ 1,921 $ 51 $ 10,748 Three months ended March 31, 2019: Beginning balance $ 4,805 $ 894 $ 505 $ 1,746 $ 1,653 $ 33 $ 9,636 Provision for loan losses 391 53 (376 ) (73 ) 7 (2 ) — Charge-offs — (17 ) — — — — (17 ) Recoveries — — — — — — — Ending balance $ 5,196 $ 930 $ 129 $ 1,673 $ 1,660 $ 31 $ 9,619 |
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 $2.8 million and $2.9 million as of March 31, 2020 and December 31, 2019, respectively) by portfolio segment as of March 31, 2020 and December 31, 2019: Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total As of March 31, 2020: (Dollars in thousands) Allowance for loan losses: Commercial real estate $ — $ 6,210 $ 6,210 SBA loans—real estate — 1,082 1,082 SBA loans—non-real estate 60 132 192 Commercial and industrial 330 962 1,292 Home mortgage — 1,921 1,921 Consumer — 51 51 Total $ 390 $ 10,358 $ 10,748 Loans: Commercial real estate $ — $ 640,889 $ 640,889 SBA loans—real estate 476 123,914 124,390 SBA loans—non-real estate 159 10,011 10,170 Commercial and industrial 330 99,728 100,058 Home mortgage — 120,468 120,468 Consumer — 3,403 3,403 Total $ 965 $ 998,413 $ 999,378 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 |
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 three months ended March 31, 2020 and 2019. 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 As of and for the three months ended March 31, 2020: (Dollars in thousands) With no related allowance recorded: SBA loans—real estate $ 476 $ — $ 480 $ — SBA loans—non-real estate 33 — 33 — With an allowance recorded: SBA loans—non-real estate 126 60 126 9 Commercial and industrial 330 330 331 4 Total $ 965 $ 390 $ 970 $ 13 As of and for the three months ended March 31, 2019: With no related allowance recorded: SBA loans—real estate $ 510 $ — $ 516 $ — SBA loans—non-real estate 49 — 53 — Commercial and industrial 680 — 680 — With an allowance recorded: Commercial and industrial 834 834 835 13 Total $ 2,073 $ 834 $ 2,084 $ 13 |
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, as of March 31, 2020 and December 31, 2019: Nonaccrual Loans >90 Days Past Due & Still Accruing Total As of March 31, 2020: (Dollars in thousands) SBA loans—real estate $ 476 $ — $ 476 SBA loans—non-real estate 33 — 33 Home mortgage 694 — 694 Total $ 1,203 $ — $ 1,203 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 |
Schedule of Aging of Recorded Investment in Past Due Loans | The following table represents the aging of the recorded investment in past due loans as of March 31, 2020 and December 31, 2019: 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Loans Not Past Due Total As of March 31, 2020: (Dollars in thousands) Commercial real estate $ — $ — $ — $ — $ 640,889 $ 640,889 SBA—real estate — 1,545 476 2,021 122,369 124,390 SBA—non-real estate — 2 33 35 10,135 10,170 Commercial and industrial — 356 — 356 99,702 100,058 Home mortgage 1,789 373 454 2,616 117,852 120,468 Consumer — — — — 3,403 3,403 $ 1,789 $ 2,276 $ 963 $ 5,028 $ 994,350 $ 999,378 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 |
Schedule of Risk Category of Loans by Class of Loans | As of March 31, 2020 and December 31, 2019, 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 As of March 31, 2020: (Dollars in thousands) Commercial real estate $ 640,889 $ — $ — $ — $ 640,889 SBA loans—real estate 121,603 766 2,021 — 124,390 SBA loans—non-real estate 9,998 13 159 — 10,170 Commercial and industrial 94,611 4,761 686 — 100,058 Home mortgage 119,774 — 694 — 120,468 Consumer 3,403 — — — 3,403 $ 990,278 $ 5,540 $ 3,560 (1) $ — $ 999,378 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 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Summary of Lease, Cost | The table below summarized the Company’s total lease cost: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Operating lease cost $ 444 $ 403 Variable lease cost 184 161 Total lease cost $ 628 $ 564 |
Summary of Other Information Related to Operating Leases | The table below summarizes other information related to the Company’s operating leases: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 500 $ 436 Weighted average remaining lease term - operating leases 5.5 6.1 Weighted average discount rate - operating leases 2.98 % 2.99 % |
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 March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, 2020 2020 remaining $ 1,502 2021 2,032 2022 2,028 2023 1,816 2024 1,702 Thereafter 1,641 Total lease payments 10,721 Discount to present value (1,020 ) Total lease liability $ 9,701 (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) | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment | The Company’s premises and equipment consisted of the following as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (Dollars in thousands) Leasehold improvements $ 6,734 $ 6,571 Furniture and fixtures 3,201 3,174 Equipment and others 2,463 2,414 Total cost 12,398 12,159 Accumulated depreciation (7,257 ) (6,933 ) Net book value $ 5,141 $ 5,226 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Servicing Asset [Abstract] | |
Schedule of Activity for Loan Servicing Assets | Activity for loan servicing assets during the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Beginning balance $ 7,024 $ 6,987 Additions 406 462 Amortized to expense (467 ) (403 ) Ending balance $ 6,963 $ 7,046 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking And Thrift [Abstract] | |
Schedule of Maturities of Time Deposits | The scheduled maturities of time deposits were as follows as of March 31, 2020: March 31, 2020 (Dollars in thousands) 2020 remaining $ 356,851 2021 91,198 2022 1,701 2023 855 2024 359 Thereafter 32 Total $ 450,996 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings Available to the Company from Institutions | The Company had available borrowings from the following institutions as of March 31, 2020: March 31, 2020 (Dollars in thousands) Federal Home Loan Bank—San Francisco $ 245,845 Federal Reserve Bank 128,204 Pacific Coast Bankers Bank 8,000 Zions Bank 25,000 Total $ 407,049 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 December 31, 2019 (Dollars in thousands) Commitments to extend credit $ 68,917 $ 66,153 Standby letter of credit 7,327 7,377 Commercial letter of credit 685 1,111 Total undisbursed loan commitments $ 76,929 $ 74,641 |
Schedule of Balance and Total Unfunded Commitments Related to Investment in Low Income Housing Partnerships | The following table shows the balance of the investments in low income housing partnership and the total unfunded commitments related to the investments in low income housing partnerships as of the dates indicated: March 31, 2020 December 31, 2019 (Dollars in thousands) Investments in low income housing partnerships $ 5,142 $ 1,719 Unfunded commitments to fund investments for low income housing partnerships 2,788 70 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except per share data) Outstanding, as of January 1, 2020 155,000 $ 4.70 Options granted — — Options exercised (55,000 ) 1.15 Options forfeited — — Options expired — — Outstanding, as of March 31, 2020 100,000 5.77 $ 171 Fully vested and expected to vest 100,000 5.77 $ 171 Vested 100,000 $ 5.77 $ 171 |
Summary of Information Related to Stock Option Plan | Information related to the 2005 Plan for the periods indicated follows: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Intrinsic value of options exercised $ 370 $ 387 Cash received from option exercises 63 107 Tax benefit realized from option exercised 15 — |
2010 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock-based Compensation Stock Options Activity | A summary of stock options outstanding under the 2010 Plan for the three months ended March 31, 2020 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except per share data) Outstanding, as of January 1, 2020 365,000 $ 5.78 Options granted — — Options exercised (85,000 ) 2.85 Options forfeited — — Options expired — — Outstanding, as of March 31, 2020 280,000 6.66 $ 336 Fully vested and expected to vest 265,000 6.59 $ 336 Vested 220,000 $ 6.30 $ 336 |
Summary of Information Related to Stock Option Plan | Information related to stock options exercised under the 2010 Plan for the periods indicated follows: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Intrinsic value of options exercised $ 519 $ 396 Cash received from option exercises 242 185 Tax benefit realized from option exercised 134 102 |
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 three months ended March 31, 2020 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, 2020 294,500 $ 9.20 Awards granted — — Awards vested — — Awards forfeited — — Non-vested, as of March 31, 2020 294,500 $ 9.20 $ 2,197 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 as of March 31, 2020 and December 31, 2019 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 March 31, 2020 : U.S. Government sponsored agency securities $ 3,025 $ — $ 3,025 $ — Mortgage-backed securities - residential 15,303 — 15,303 — Collateralized mortgage obligations 33,851 — 33,851 — Other investments: Mutual fund - CRA qualified 3,705 3,705 — — 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 — — |
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 As of March 31, 2020: (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 110,999 $ 110,999 $ — $ — $ 110,999 Loans held for sale 4,382 — 4,754 — 4,754 Loans receivable, net 985,811 — — 980,882 980,882 Accrued interest receivable 3,056 9 228 2,819 3,056 Other investments: FHLB and PCBB stock 5,548 N/A N/A N/A N/A Financial Liabilities: Deposit $ 1,052,198 $ — $ 1,054,002 $ — $ 1,054,002 Accrued interest payable 2,592 — 2,592 — 2,592 The carrying amounts and estimated fair values of financial instruments not carried at fair value at December 31, 2019 are as follows: Carrying Amount Level 1 Level 2 Level 3 Value As of December 31, 2019: (Dollars in thousands) 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 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer | Actual and required capital amounts (in thousands) and ratios, exclusive of the capital conservation buffer, are presented below as of March 31, 2020 and December 31, 2019: Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2020: Total capital (to risk-weighted assets) Consolidated $ 147,410 14.78 % N/A N/A N/A N/A Bank 145,465 14.59 % 79,782 8.00 % 99,727 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 136,594 13.69 % N/A N/A N/A N/A Bank 134,649 13.50 % 59,836 6.00 % 79,782 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 136,594 13.69 % N/A N/A N/A N/A Bank 134,649 13.50 % 44,877 4.50 % 64,823 6.50 % Tier 1 capital (to average assets) Consolidated 136,594 11.59 % N/A N/A N/A N/A Bank 134,649 11.42 % 47,143 4.00 % 58,929 5.00 % Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio 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 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The factors used in the earnings per share computation follow: Three Months Ended March 31, (Dollars in thousands, except share data) 2020 2019 Basic Net income $ 3,299 $ 4,740 Undistributed earnings allocated to participating securities (62 ) (127 ) Net income allocated to common shares 3,237 4,613 Weighted average common shares outstanding 15,486,549 15,817,060 Basic earnings per common share $ 0.21 $ 0.29 Diluted Net income allocated to common shares $ 3,237 $ 4,613 Weighted average common shares outstanding for basic earnings per common share 15,486,549 15,817,060 Add: Dilutive effects of assumed exercises of stock options 99,706 295,665 Average shares and dilutive potential common shares 15,586,255 16,112,725 Diluted earnings per common share $ 0.21 $ 0.29 |
Business Description - Addition
Business Description - Additional Information (Details) | Mar. 27, 2018USD ($)$ / sharesshares | Mar. 31, 2020BranchOffice |
Business Description [Line Items] | ||
Operations commenced date | Jun. 1, 2016 | |
Number of full service branches | Branch | 9 | |
Number of loan production offices | Office | 4 | |
Common Stock | ||
Business Description [Line Items] | ||
Proceeds from issuance initial public offering | $ 22,600,000 | |
Initial Public Offering | Common Stock | ||
Business Description [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 | ||
Business Description [Line Items] | ||
Percentage of voting equity interests acquired | 100.00% | |
Operations commenced date | Jun. 10, 2005 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 50,618 | $ 56,282 |
Gross Unrealized Gains | 1,561 | 339 |
Gross Unrealized Losses | (72) | |
Fair Value | 52,179 | 56,549 |
U.S. Government Sponsored Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 3,000 | 5,000 |
Gross Unrealized Gains | 25 | 2 |
Gross Unrealized Losses | (1) | |
Fair Value | 3,025 | 5,001 |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 14,900 | 15,559 |
Gross Unrealized Gains | 403 | 94 |
Gross Unrealized Losses | (12) | |
Fair Value | 15,303 | 15,641 |
Collateralized Mortgage Obligations, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 32,718 | 35,723 |
Gross Unrealized Gains | 1,133 | 243 |
Gross Unrealized Losses | (59) | |
Fair Value | $ 33,851 | $ 35,907 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Proceeds from sale of available-for-sale securities | $ 0 | $ 0 | |
Unrealized losses | 0 | ||
Other than temporary impairments unrealized losses on securities | 0 | ||
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Within one year, Amortized Cost | $ 2,000 | |
One to five years, Amortized Cost | 1,000 | |
Available for sale, Amortized Cost | 50,618 | $ 56,282 |
Within one year, Fair Value | 2,010 | |
One to five years, Fair Value | 1,015 | |
Available for sale, Fair Value | 52,179 | 56,549 |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 14,900 | 15,559 |
Available for sale, Fair Value | 15,303 | $ 15,641 |
Collateralized Mortgage Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 32,718 | |
Available for sale, Fair Value | $ 33,851 |
Securities - Schedule of Securi
Securities - Schedule of Securities With Unrealized Losses (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Fair Value, Less Than 12 Months | $ 8,878 |
Unrealized Losses, Less Than 12 Months | (29) |
Fair Value, 12 Months or Longer | 8,911 |
Unrealized Losses, 12 Months or Longer | (43) |
Total Fair Value | 17,789 |
Total Unrealized Losses | (72) |
U.S. Government Sponsored Agency Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair Value, 12 Months or Longer | 1,999 |
Unrealized Losses, 12 Months or Longer | (1) |
Total Fair Value | 1,999 |
Total Unrealized Losses | (1) |
Mortgage-backed Securities, Residential | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair Value, 12 Months or Longer | 3,254 |
Unrealized Losses, 12 Months or Longer | (12) |
Total Fair Value | 3,254 |
Total Unrealized Losses | (12) |
Collateralized Mortgage Obligations | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair Value, Less Than 12 Months | 8,878 |
Unrealized Losses, Less Than 12 Months | (29) |
Fair Value, 12 Months or Longer | 3,658 |
Unrealized Losses, 12 Months or Longer | (30) |
Total Fair Value | 12,536 |
Total Unrealized Losses | $ (59) |
Securities - Schedule of Other
Securities - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
FHLB stock | $ 5,358 | $ 5,358 |
PCBB stock | 190 | 190 |
Mutual fund - CRA qualified | 3,705 | 3,628 |
Total other investments | $ 9,253 | $ 9,176 |
Loans - Composition of Loan Por
Loans - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | $ 996,559 | $ 990,138 |
Allowance for loan losses | (10,748) | (10,050) |
Loans receivable, net | 985,811 | 980,088 |
Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 763,206 | 753,041 |
Real Estate | Commercial Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 639,411 | 630,668 |
Real Estate | SBA Loans—Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 123,795 | 122,373 |
SBA Loans—Non-Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 10,114 | 9,895 |
Commercial and Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 99,860 | 103,852 |
Home Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 119,984 | 120,686 |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | $ 3,395 | $ 2,664 |
Loans - Additional Information
Loans - Additional Information (Details) | Apr. 24, 2020USD ($)loan | Mar. 31, 2020USD ($)Contract | Mar. 31, 2019USD ($)Contract | Apr. 30, 2020USD ($)Borrowerloan | Dec. 31, 2019USD ($) |
Loans And Leases Receivable Disclosure [Line Items] | |||||
Loans | $ 0 | $ 0 | |||
Accrued interest receivable | 2,800,000 | 2,900,000 | |||
Recorded investment in troubled debt restructurings | 330,000 | 333,000 | |||
Specific reserves to customers whose loan terms have been modified in troubled debt restructurings | $ 330,000 | $ 333,000 | |||
Loans identified as trouble debt restructurings | Contract | 0 | 0 | |||
Financing receivable, modifications, subsequent default, recorded investment | $ 0 | $ 0 | |||
Subsequent Event | Paycheck Protection Program Loans | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Number of loans processed | loan | 323 | ||||
Total loans funded | $ 36,700,000 | ||||
Subsequent Event | Paycheck Protection Program and Health Care Enhancement Act | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Number of loans processed | loan | 530 | ||||
Total loans funded | $ 27,800,000 | ||||
Additional funding under CARES act | $ 310,000,000,000 | ||||
Payment Deferral | Subsequent Event | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Recorded investment in troubled debt restructurings | $ 219,200,000 | ||||
Number of requests for loan payment deferral | Borrower | 175 |
Loans - Schedule of Activity in
Loans - Schedule of Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | $ 10,050 | $ 9,636 |
Provision for loan losses | 743 | |
Charge-offs | (45) | (17) |
Ending balance | 10,748 | 9,619 |
Commercial Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 6,000 | 4,805 |
Provision for loan losses | 210 | 391 |
Ending balance | 6,210 | 5,196 |
SBA Loans-Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 939 | 894 |
Provision for loan losses | 143 | 53 |
Charge-offs | (17) | |
Ending balance | 1,082 | 930 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 121 | 505 |
Provision for loan losses | 116 | (376) |
Charge-offs | (45) | |
Ending balance | 192 | 129 |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 1,289 | 1,746 |
Provision for loan losses | 3 | (73) |
Ending balance | 1,292 | 1,673 |
Home Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 1,667 | 1,653 |
Provision for loan losses | 254 | 7 |
Ending balance | 1,921 | 1,660 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 34 | 33 |
Provision for loan losses | 17 | (2) |
Ending balance | $ 51 | $ 31 |
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 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | $ 390 | $ 333 | ||
Allowance for Loan Collectively Evaluated for Impairment | 10,358 | 9,717 | ||
Total | 10,748 | 10,050 | $ 9,619 | $ 9,636 |
Loans Individually Evaluated for Impairment | 965 | 850 | ||
Loans Collectively Evaluated for Impairment | 998,413 | 992,170 | ||
Total | 999,378 | 993,020 | ||
Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 6,210 | 6,000 | ||
Total | 6,210 | 6,000 | 5,196 | 4,805 |
Loans Collectively Evaluated for Impairment | 640,889 | 632,205 | ||
Total | 640,889 | 632,205 | ||
SBA Loans-Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 1,082 | 939 | ||
Total | 1,082 | 939 | 930 | 894 |
Loans Individually Evaluated for Impairment | 476 | 484 | ||
Loans Collectively Evaluated for Impairment | 123,914 | 122,438 | ||
Total | 124,390 | 122,922 | ||
SBA Loans—Non-Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | 60 | |||
Allowance for Loan Collectively Evaluated for Impairment | 132 | 121 | ||
Total | 192 | 121 | 129 | 505 |
Loans Individually Evaluated for Impairment | 159 | 33 | ||
Loans Collectively Evaluated for Impairment | 10,011 | 9,921 | ||
Total | 10,170 | 9,954 | ||
Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | 330 | 333 | ||
Allowance for Loan Collectively Evaluated for Impairment | 962 | 956 | ||
Total | 1,292 | 1,289 | 1,673 | 1,746 |
Loans Individually Evaluated for Impairment | 330 | 333 | ||
Loans Collectively Evaluated for Impairment | 99,728 | 103,774 | ||
Total | 100,058 | 104,107 | ||
Home Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 1,921 | 1,667 | ||
Total | 1,921 | 1,667 | 1,660 | 1,653 |
Loans Collectively Evaluated for Impairment | 120,468 | 121,161 | ||
Total | 120,468 | 121,161 | ||
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 51 | 34 | ||
Total | 51 | 34 | $ 31 | $ 33 |
Loans Collectively Evaluated for Impairment | 3,403 | 2,671 | ||
Total | $ 3,403 | $ 2,671 |
Loans - Schedule of Information
Loans - Schedule of Information Related to Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable Impaired [Line Items] | ||
Recorded investment | $ 965 | $ 2,073 |
Allowance Allocated | 390 | 834 |
Average Recorded Investment | 970 | 2,084 |
Interest Income Recognized | 13 | 13 |
SBA Loans—Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Recorded investment, With no related allowance recorded | 476 | 510 |
Average Recorded Investment, With no related allowance recorded | 480 | 516 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Recorded investment, With no related allowance recorded | 33 | 49 |
Average Recorded Investment, With no related allowance recorded | 33 | 53 |
Commercial And Industrial | ||
Financing Receivable Impaired [Line Items] | ||
Recorded investment, With no related allowance recorded | 680 | |
Recorded investment, With an allowance recorded | 330 | 834 |
Allowance Allocated | 330 | 834 |
Average Recorded Investment, With no related allowance recorded | 680 | |
Average Recorded Investment, With an allowance recorded | 331 | 835 |
Interest Income Recognized, With an allowance recorded | 4 | $ 13 |
SBA Loans-Non-Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Recorded investment, With an allowance recorded | 126 | |
Allowance Allocated | 60 | |
Average Recorded Investment, With an allowance recorded | 126 | |
Interest Income Recognized, With an allowance recorded | $ 9 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | $ 1,203 | $ 1,215 |
Total | 1,203 | 1,215 |
SBA Loans—Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 476 | 484 |
Total | 476 | 484 |
SBA Loans-Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 33 | 33 |
Total | 33 | 33 |
Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 694 | 698 |
Total | $ 694 | $ 698 |
Loans - Schedule of Aging of Re
Loans - Schedule of Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | $ 5,028 | $ 4,996 |
Loans Not Past Due | 994,350 | 988,024 |
Total | 999,378 | 993,020 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 640,889 | 632,205 |
Total | 640,889 | 632,205 |
SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 2,021 | 2,036 |
Loans Not Past Due | 122,369 | 120,886 |
Total | 124,390 | 122,922 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 35 | 162 |
Loans Not Past Due | 10,135 | 9,792 |
Total | 10,170 | 9,954 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 356 | 364 |
Loans Not Past Due | 99,702 | 103,743 |
Total | 100,058 | 104,107 |
Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 2,616 | 2,434 |
Loans Not Past Due | 117,852 | 118,727 |
Total | 120,468 | 121,161 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 3,403 | 2,671 |
Total | 3,403 | 2,671 |
30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,789 | 3,899 |
30-59 Days Past Due | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,552 | |
30-59 Days Past Due | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 3 | |
30-59 Days Past Due | Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 364 | |
30-59 Days Past Due | Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,789 | 1,980 |
60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 2,276 | 126 |
60-89 Days Past Due | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,545 | |
60-89 Days Past Due | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 2 | 126 |
60-89 Days Past Due | Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 356 | |
60-89 Days Past Due | Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 373 | |
> 90 Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 963 | 971 |
> 90 Days Pass Due | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 476 | 484 |
> 90 Days Pass Due | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 33 | 33 |
> 90 Days Pass Due | Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | $ 454 | $ 454 |
Loans - Schedule of Risk Catego
Loans - Schedule of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment [Line Items] | ||
Total | $ 999,378 | $ 993,020 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 640,889 | 632,205 |
SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 124,390 | 122,922 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 10,170 | 9,954 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 100,058 | 104,107 |
Home Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 120,468 | 121,161 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 3,403 | 2,671 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 990,278 | 983,745 |
Pass | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 640,889 | 632,205 |
Pass | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 121,603 | 120,116 |
Pass | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 9,998 | 9,781 |
Pass | Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 94,611 | 98,509 |
Pass | Home Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 119,774 | 120,463 |
Pass | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 3,403 | 2,671 |
Special Member | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 5,540 | 5,811 |
Special Member | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 766 | 770 |
Special Member | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 13 | 140 |
Special Member | Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 4,761 | 4,901 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 3,560 | 3,464 |
Substandard | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 2,021 | 2,036 |
Substandard | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 159 | 33 |
Substandard | Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 686 | 697 |
Substandard | Home Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | $ 694 | $ 698 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | |||
Remaining operating lease terms | 5 years 6 months | 6 years 1 month 6 days | |
Operating lease liabilities | $ 9,701,000 | $ 10,126,000 | |
Operating right-of-use assets | 7,885,000 | $ 8,254,000 | |
Operating lease rent expense | $ 628,000 | $ 564,000 | |
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 right-of-use assets | $ 8,057,000 | ||
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 |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 444 | $ 403 |
Variable lease cost | 184 | 161 |
Total lease cost | $ 628 | $ 564 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 500 | $ 436 |
Weighted average remaining lease term - operating leases | 5 years 6 months | 6 years 1 month 6 days |
Weighted average discount rate - operating leases | 2.98% | 2.99% |
Leases - Summary of Remaining C
Leases - Summary of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease liability (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 remaining | $ 1,502 | |
2020 | $ 2,001 | |
2021 | 2,032 | 2,032 |
2022 | 2,028 | 2,028 |
2023 | 1,816 | 1,816 |
2024 | 1,702 | 1,702 |
Thereafter | 1,641 | 1,641 |
Total lease payments | 10,721 | 11,220 |
Discount to present value | (1,020) | (1,094) |
Total lease liability | $ 9,701 | $ 10,126 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total cost | $ 12,398 | $ 12,159 |
Accumulated depreciation | (7,257) | (6,933) |
Net book value | 5,141 | 5,226 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 6,734 | 6,571 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 3,201 | 3,174 |
Equipment and Others | ||
Property Plant And Equipment [Line Items] | ||
Total cost | $ 2,463 | $ 2,414 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 329,000 | $ 268,000 |
Servicing Assets - Schedule of
Servicing Assets - Schedule of Activity for Loan Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Servicing Asset [Abstract] | ||
Beginning balance | $ 7,024 | $ 6,987 |
Additions | 406 | 462 |
Amortized to expense | (467) | (403) |
Ending balance | $ 6,963 | $ 7,046 |
Servicing Assets - Additional I
Servicing Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Servicing Assets At Amortized Value [Line Items] | ||
Valuation allowance against carrying value of servicing assets | $ 0 | $ 0 |
Servicing asset at fair value, amount | $ 8,000,000 | $ 8,500,000 |
Minimum | ||
Servicing Assets At Amortized Value [Line Items] | ||
Fair value of servicing assets, discount rates | 5.70% | 5.70% |
Fair value of servicing assets, prepayment speed | 15.00% | 12.10% |
Maximum | ||
Servicing Assets At Amortized Value [Line Items] | ||
Fair value of servicing assets, discount rates | 11.90% | 11.40% |
Fair value of servicing assets, prepayment speed | 15.10% | 12.80% |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Deposits [Abstract] | |
2020 remaining | $ 356,851 |
2021 | 91,198 |
2022 | 1,701 |
2023 | 855 |
2024 | 359 |
Thereafter | 32 |
Total | $ 450,996 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Principal Officers, Directors, and Affiliates | ||
Time Deposits [Line Items] | ||
Deposits from principal officers, directors, and their affiliates | $ 1.1 | $ 1.6 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) | Mar. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Federal home loan bank borrowings | $ 0 |
Letter of credit | 49,000,000 |
Collateral pledged | $ 851,400,000 |
Borrowing Arrangements - Summar
Borrowing Arrangements - Summary of Borrowings Available to the Company from Institutions (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 407,049 |
Federal Home Loan Bank—San Francisco | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 245,845 |
Federal Reserve Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 128,204 |
Pacific Coast Bankers Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 8,000 |
Zions Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 25,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 1,163,000 | $ 1,518,000 |
Effective income tax rate | 26.10% | 24.30% |
Unrealized tax benefits | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Distribution of Undisbursed Loan Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | $ 76,929 | $ 74,641 |
Commitments to Extend Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | 68,917 | 66,153 |
Standby Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | 7,327 | 7,377 |
Commercial Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | $ 685 | $ 1,111 |
Commitments and Contingencies_2
Commitments and Contingencies - Balance and Total Unfunded Commitments Related to Investment in Low Income Housing Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Investments in low income housing partnerships | $ 5,142 | $ 1,719 |
Unfunded commitments to fund investments for low income housing partnerships | $ 2,788 | $ 70 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Recognized amortization expense | $ 54,000 | $ 54,000 |
Recognized tax credits and other benefits | $ 50,000 | $ 51,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation expense | $ 358,000 | $ 377,000 | ||
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 | 3 years 4 months 24 days | |||
Weighted average remaining contractual life for options exercisable | 3 years 4 months 24 days | |||
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 | 95,427 | 2,500,000 | 1,350,000 | |
Percent of the fair value options granted | 100.00% | |||
Weighted average remaining contractual term stock options outstanding | 3 years 1 month 24 days | |||
Weighted average remaining contractual life for options exercisable | 2 years 11 months 1 day | |||
Number of options outstanding, Granted | 0 | 0 | ||
Restricted stock awards vested | 0 | 0 | ||
Unrecognized compensation costs related to unvested stock options | $ 1,400,000 | |||
Unrecognized compensation costs weighted average period | 1 year 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 Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted stock awards granted | 0 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock-based Compensation Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options outstanding, Beginning of period | 155,000 | |
Number of options outstanding, Exercised | (55,000) | |
Number of options outstanding, Ending of year | 100,000 | |
Number of options outstanding, Full vested and expected to vest | 100,000 | |
Number of options outstanding, Vested | 100,000 | |
2005 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average exercise price, Outstanding beginning | $ 4.70 | |
Weighted average exercise price, Exercised | 1.15 | |
Weighted average exercise price, Outstanding ending | 5.77 | |
Weighted average exercise price, Full vested and expected to vest | 5.77 | |
Weighted average exercise price, Vested | $ 5.77 | |
Aggregate intrinsic value, Outstanding | $ 171 | |
Aggregate intrinsic value, Fully vested and expected to vest | 171 | |
Aggregate intrinsic value, Vested | $ 171 | |
2010 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options outstanding, Beginning of period | 365,000 | |
Number of options outstanding, Granted | 0 | 0 |
Number of options outstanding, Exercised | (85,000) | |
Number of options outstanding, Ending of year | 280,000 | |
Number of options outstanding, Full vested and expected to vest | 265,000 | |
Number of options outstanding, Vested | 220,000 | |
Weighted average exercise price, Outstanding beginning | $ 5.78 | |
Weighted average exercise price, Exercised | 2.85 | |
Weighted average exercise price, Outstanding ending | 6.66 | |
Weighted average exercise price, Full vested and expected to vest | 6.59 | |
Weighted average exercise price, Vested | $ 6.30 | |
Aggregate intrinsic value, Outstanding | $ 336 | |
Aggregate intrinsic value, Fully vested and expected to vest | 336 | |
Aggregate intrinsic value, Vested | $ 336 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Information Related to Stock Option Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Cash received from option exercises | $ 305 | $ 292 |
2005 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Intrinsic value of options exercised | 370 | 387 |
Cash received from option exercises | 63 | 107 |
Tax benefit realized from option exercised | 15 | |
2010 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Intrinsic value of options exercised | 519 | 396 |
Cash received from option exercises | 242 | 185 |
Tax benefit realized from option exercised | $ 134 | $ 102 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Changes in Non-vested Restricted Stock Awards (Details) - 2010 Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued, Awards vested | 0 | 0 |
Restricted Stock Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued, Non-vested beginning of period | 294,500 | |
Shares issued, Awards granted | 0 | |
Shares issued, Non-vested end of period | 294,500 | |
Weighted average grant date fair value, Non-vested beginning of period | $ 9.20 | |
Weighted average grant date fair value, Non-vested end of period | $ 9.20 | |
Aggregate intrinsic value, Non-vested end of year | $ 2,197 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - 401 (k) Plan - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Eligibility age of employees for plan | 21 years | |
Employee minimum service period | 90 days | |
Employer contribution amount | $ 180,000 | $ 137,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Service charges on deposits | $ 430,000 | $ 527,000 |
Noninterest income | 2,296,000 | 3,533,000 |
Service Fees and Transaction-Based Fees Income | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Service charges on deposits | $ 152,000 | $ 172,000 |
Percentage on revenue | 1.10% | 1.20% |
Overdraft and NSF Fees Income | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Service charges on deposits | $ 215,000 | $ 276,000 |
Percentage on revenue | 1.60% | 1.90% |
Wire Transfer Fee Income | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Percentage on revenue | 0.50% | 0.50% |
Noninterest income | $ 63,000 | $ 79,000 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Other investments: | ||
Mutual fund - CRA qualified | $ 3,705 | $ 3,628 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
U.S. Government sponsored agency securities | 3,025 | 5,001 |
Mortgage-backed securities - residential | 15,303 | 15,641 |
Collateralized mortgage obligations | 33,851 | 35,907 |
Other investments: | ||
Mutual fund - CRA qualified | 3,705 | 3,628 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Other investments: | ||
Mutual fund - CRA qualified | 3,705 | 3,628 |
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 | 3,025 | 5,001 |
Mortgage-backed securities - residential | 15,303 | 15,641 |
Collateralized mortgage obligations | $ 33,851 | $ 35,907 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
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 | Mar. 31, 2020 | Dec. 31, 2018 |
Financial Assets: | ||
Cash and cash equivalents | $ 110,999 | $ 86,036 |
Loans held for sale | 4,754 | 2,100 |
Loans receivable, net | 980,882 | 1,009,490 |
Accrued interest receivable | 3,056 | 3,166 |
Financial Liabilities: | ||
Deposit | 1,054,002 | 1,021,571 |
Accrued interest payable | 2,592 | 2,686 |
Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 110,999 | 86,036 |
Loans held for sale | 4,382 | 2,100 |
Loans receivable, net | 985,811 | 980,088 |
Accrued interest receivable | 3,056 | 3,166 |
Other investments: | ||
FHLB and PCBB stock | 5,548 | 5,548 |
Financial Liabilities: | ||
Deposit | 1,052,198 | 1,020,711 |
Accrued interest payable | 2,592 | 2,686 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 110,999 | 86,036 |
Accrued interest receivable | 9 | 41 |
Level 2 | ||
Financial Assets: | ||
Loans held for sale | 4,754 | 2,100 |
Accrued interest receivable | 228 | 243 |
Financial Liabilities: | ||
Deposit | 1,054,002 | 1,021,571 |
Accrued interest payable | 2,592 | 2,686 |
Level 3 | ||
Financial Assets: | ||
Loans receivable, net | 980,882 | 1,009,490 |
Accrued interest receivable | $ 2,819 | $ 2,882 |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2016 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Capital conservation buffer | 2.50% | 0.625% | |
Capital conservation buffer, percentage of annual increase until 2019 | 0.625% | ||
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 147,410 | $ 150,092 |
Tier 1 capital (to risk-weighted assets), Actual Amount | 136,594 | 139,975 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount | 136,594 | 139,975 |
Tier 1 capital (to average assets), Actual Amount | $ 136,594 | $ 139,975 |
Total capital (to risk-weighted assets), Actual Ratio | 14.78% | 15.18% |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 13.69% | 14.16% |
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio | 13.69% | 14.16% |
Tier 1 capital (to average assets), Actual Ratio | 11.59% | 12.14% |
Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 145,465 | $ 147,820 |
Tier 1 capital (to risk-weighted assets), Actual Amount | 134,649 | 137,703 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount | 134,649 | 137,703 |
Tier 1 capital (to average assets), Actual Amount | $ 134,649 | $ 137,703 |
Total capital (to risk-weighted assets), Actual Ratio | 14.59% | 14.96% |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 13.50% | 13.93% |
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio | 13.50% | 13.93% |
Tier 1 capital (to average assets), Actual Ratio | 11.42% | 11.95% |
Total capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | $ 79,782 | $ 79,069 |
Tier 1 capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | 59,836 | 59,301 |
Common equity Tier 1 capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | 44,877 | 44,476 |
Tier 1 capital (to average assets), Amount, Required for Capital Adequacy Purposes | $ 47,143 | $ 46,103 |
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" | $ 99,727 | $ 98,836 |
Tier 1 capital (to risk-weighted assets), Amount, Minimum To be Considered "Well Capitalized" | 79,782 | 79,069 |
Common equity Tier 1 capital (to risk-weighted assets), Amount, Minimum To be Considered "Well Capitalized" | 64,823 | 64,243 |
Tier 1 capital (to average assets), Amount, Minimum To be Considered "Well Capitalized" | $ 58,929 | $ 57,629 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic | ||
Net income | $ 3,299 | $ 4,740 |
Undistributed earnings allocated to participating securities | (62) | (127) |
Net income allocated to common shares | $ 3,237 | $ 4,613 |
Weighted average common shares outstanding | 15,486,549 | 15,817,060 |
Basic earnings per common share | $ 0.21 | $ 0.29 |
Diluted | ||
Net income allocated to common shares | $ 3,237 | $ 4,613 |
Weighted average common shares outstanding | 15,486,549 | 15,817,060 |
Add: Dilutive effects of assumed exercises of stock options | 99,706 | 295,665 |
Average shares and dilutive potential common shares | 15,586,255 | 16,112,725 |
Diluted earnings per common share | $ 0.21 | $ 0.29 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares of common stock excluded from computation of earnings per share | 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 | 145,000 |