Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38437 | |
Entity Registrant Name | OP BANCORP | |
Entity Incorporation, State or Country Code | CA | |
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 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | OPBK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,133,407 | |
Entity Central Index Key | 0001722010 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 188,145 | $ 106,310 |
Available-for-sale debt securities, at fair value | 102,535 | 91,791 |
Other investments | 11,025 | 10,101 |
Loans held-for-sale | 94,466 | 26,659 |
Loans receivable, net of allowance of $14,134 in 2021 and $15,352 in 2020 | 1,217,687 | 1,084,384 |
Premises and equipment, net | 4,199 | 4,544 |
Accrued interest receivable, net of allowance of $465 in 2021 and $643 in 2020 | 3,931 | 3,985 |
Servicing assets | 12,389 | 7,360 |
Company owned life insurance | 11,070 | 10,879 |
Deferred tax assets | 5,247 | 5,242 |
Operating right-of-use assets | 9,270 | 6,786 |
Other assets | 19,947 | 8,785 |
Total assets | 1,679,911 | 1,366,826 |
Deposits: | ||
Noninterest bearing | 713,141 | 522,754 |
Interest bearing: | ||
Money market and others | 351,186 | 328,323 |
Time deposits greater than $250,000 | 209,091 | 200,210 |
Other time deposits | 222,988 | 148,803 |
Total deposits | 1,496,406 | 1,200,090 |
Federal Home Loan Bank advances | 0 | 5,000 |
Accrued interest payable | 575 | 1,021 |
Operating lease liabilities | 10,703 | 8,429 |
Other liabilities | 13,603 | 8,920 |
Total liabilities | 1,521,287 | 1,223,460 |
Shareholders’ equity | ||
Preferred stock – no par value; 10,000,000 shares authorized; no shares issued or outstanding in 2021 and 2020 | 0 | 0 |
Common stock – no par value; 50,000,000 shares authorized; 15,133,407 and 15,016,700 shares issued and outstanding in 2021 and 2020 | 78,718 | 78,657 |
Additional paid-in capital | 8,491 | 8,521 |
Retained earnings | 71,436 | 55,348 |
Accumulated other comprehensive (loss) income | (21) | 840 |
Total shareholders’ equity | 158,624 | 143,366 |
Total liabilities and shareholders' equity | $ 1,679,911 | $ 1,366,826 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance | $ 14,134 | $ 15,352 |
Accrued interest receivable, allowance | $ 465 | $ 643 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares, issued (in shares) | 15,133,407 | 15,016,700 |
Common stock, shares, outstanding (in shares) | 15,133,407 | 15,016,700 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 16,922 | $ 12,581 | $ 45,177 | $ 38,823 |
Interest on available-for-sale debt securities | 269 | 319 | 723 | 920 |
Other interest income | 164 | 116 | 436 | 538 |
Total interest income | 17,355 | 13,016 | 46,336 | 40,281 |
Interest expense | ||||
Interest on deposits | 766 | 1,597 | 2,406 | 7,098 |
Total interest expense | 766 | 1,597 | 2,406 | 7,098 |
Net interest income | 16,589 | 11,419 | 43,930 | 33,183 |
(Reversal of) provision for loan losses | (884) | 1,399 | (1,376) | 4,130 |
Net interest income after (reversal of) provision for loan losses | 17,473 | 10,020 | 45,306 | 29,053 |
NONINTEREST INCOME | ||||
Service charges on deposits | 409 | 334 | 1,157 | 1,063 |
Loan servicing fees, net of amortization | 599 | 583 | 1,432 | 1,489 |
Gain on sale of loans | 2,188 | 1,813 | 5,280 | 3,904 |
Other income | 346 | 291 | 859 | 923 |
Total noninterest income | 3,542 | 3,021 | 8,728 | 7,379 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 5,724 | 5,086 | 15,693 | 14,505 |
Occupancy and equipment | 1,326 | 1,266 | 3,795 | 3,737 |
Data processing and communication | 448 | 424 | 1,363 | 1,247 |
Professional fees | 308 | 287 | 925 | 836 |
FDIC insurance and regulatory assessments | 146 | 112 | 401 | 334 |
Promotion and advertising | 175 | 81 | 528 | 405 |
Directors’ fees | 183 | 147 | 427 | 603 |
Foundation donation and other contributions | 842 | 360 | 1,989 | 935 |
Other expenses | 367 | 224 | 1,153 | 926 |
Total noninterest expense | 9,519 | 7,987 | 26,274 | 23,528 |
INCOME BEFORE INCOME TAX EXPENSE | 11,496 | 5,054 | 27,760 | 12,904 |
INCOME TAX EXPENSE | 3,246 | 1,459 | 8,054 | 3,594 |
NET INCOME | $ 8,250 | $ 3,595 | $ 19,706 | $ 9,310 |
EARNINGS PER SHARE - BASIC (in dollars per share) | $ 0.54 | $ 0.23 | $ 1.29 | $ 0.60 |
EARNINGS PER SHARE - DILUTED (in dollars per share) | $ 0.54 | $ 0.23 | $ 1.29 | $ 0.60 |
Other comprehensive (loss)/income: | ||||
Change in unrealized (losses)/gains on securities available-for-sale | $ (343) | $ 57 | $ (1,222) | $ 1,120 |
Tax effect | 102 | (17) | 361 | (331) |
Total other comprehensive (loss)/income | (241) | 40 | (861) | 789 |
COMPREHENSIVE INCOME | $ 8,009 | $ 3,635 | $ 18,845 | $ 10,099 |
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 (shares) at Dec. 31, 2019 | 15,703,276 | ||||
Beginning balance at Dec. 31, 2019 | $ 140,576 | $ 86,381 | $ 7,524 | $ 46,483 | $ 188 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 9,310 | 9,310 | |||
Other comprehensive income (loss) | 789 | 789 | |||
Stock issued under stock-based compensation plans (shares) | 268,591 | ||||
Stock issued under stock-based compensation plans | 305 | $ 305 | |||
Stock-based compensation, net | 858 | 858 | |||
Repurchase of common stock (shares) | (845,597) | ||||
Repurchase of common stock | (7,086) | $ (7,086) | |||
Cash dividends declared | (3,203) | (3,203) | |||
Ending balance (shares) at Sep. 30, 2020 | 15,126,270 | ||||
Ending balance at Sep. 30, 2020 | 141,549 | $ 79,600 | 8,382 | 52,590 | 977 |
Beginning balance (shares) at Jun. 30, 2020 | 15,068,030 | ||||
Beginning balance at Jun. 30, 2020 | 139,136 | $ 79,925 | 8,218 | 50,056 | 937 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,595 | 3,595 | |||
Other comprehensive income (loss) | 40 | 40 | |||
Stock issued under stock-based compensation plans (shares) | 116,356 | ||||
Stock issued under stock-based compensation plans | 0 | $ 0 | |||
Stock-based compensation, net | 164 | 164 | |||
Repurchase of common stock (shares) | (58,116) | ||||
Repurchase of common stock | (325) | $ (325) | |||
Cash dividends declared | (1,061) | (1,061) | |||
Ending balance (shares) at Sep. 30, 2020 | 15,126,270 | ||||
Ending balance at Sep. 30, 2020 | 141,549 | $ 79,600 | 8,382 | 52,590 | 977 |
Beginning balance (shares) at Dec. 31, 2020 | 15,016,700 | ||||
Beginning balance at Dec. 31, 2020 | 143,366 | $ 78,657 | 8,521 | 55,348 | 840 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 19,706 | 19,706 | |||
Other comprehensive income (loss) | (861) | (861) | |||
Stock issued under stock-based compensation plans (shares) | 120,537 | ||||
Stock issued under stock-based compensation plans | 89 | $ 89 | |||
Stock-based compensation, net | (30) | (30) | |||
Repurchase of common stock (shares) | (3,830) | ||||
Repurchase of common stock | (28) | $ (28) | |||
Cash dividends declared | (3,618) | (3,618) | |||
Ending balance (shares) at Sep. 30, 2021 | 15,133,407 | ||||
Ending balance at Sep. 30, 2021 | 158,624 | $ 78,718 | 8,491 | 71,436 | (21) |
Beginning balance (shares) at Jun. 30, 2021 | 15,133,407 | ||||
Beginning balance at Jun. 30, 2021 | 151,962 | $ 78,718 | 8,324 | 64,700 | 220 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,250 | 8,250 | |||
Other comprehensive income (loss) | (241) | (241) | |||
Stock issued under stock-based compensation plans (shares) | 0 | ||||
Stock issued under stock-based compensation plans | 0 | $ 0 | |||
Stock-based compensation, net | 167 | 167 | |||
Repurchase of common stock (shares) | 0 | ||||
Repurchase of common stock | 0 | $ 0 | |||
Cash dividends declared | (1,514) | (1,514) | |||
Ending balance (shares) at Sep. 30, 2021 | 15,133,407 | ||||
Ending balance at Sep. 30, 2021 | $ 158,624 | $ 78,718 | $ 8,491 | $ 71,436 | $ (21) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.10 | $ 0.07 | $ 0.24 | $ 0.21 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 19,706 | $ 9,310 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
(Reversal of) provision for loan losses | (1,376) | 4,130 |
Depreciation and amortization of premises and equipment | 989 | 981 |
Amortization of net premiums on securities | 707 | 337 |
Amortization of servicing assets | 2,448 | 1,156 |
Amortization of low-income housing partnerships | 405 | 268 |
Stock-based compensation | 403 | 965 |
Deferred income taxes | 356 | (1,052) |
Gain on sales of loans | (5,280) | (3,904) |
Earnings on company owned life insurance | (191) | (197) |
Net change in fair value of equity investment with readily determinable fair value | 73 | (89) |
Origination of loans held for sale | (123,661) | (98,285) |
Proceeds from sales of loans held for sale | 59,545 | 61,457 |
Net change in: | ||
Accrued interest receivable | 631 | (1,802) |
Other assets | (6,935) | 2,878 |
Accrued interest payable | (446) | (1,331) |
Other liabilities | 443 | (1,008) |
Net cash used in by operating activities | (52,183) | (26,186) |
Cash flows from investing activities | ||
Net change in loans receivable | (40,761) | (82,621) |
Proceeds from matured, called, or paid-down securities available-for-sale | 27,118 | 20,552 |
Purchase of loans and servicing assets | (97,631) | 0 |
Purchase of securities available-for-sale | (39,791) | (56,703) |
Purchase of FHLB stock | (963) | (685) |
Purchase of premises and equipment, net | (644) | (511) |
Net change in investments in low-income housing partnerships | (636) | (1,262) |
Net cash used in investing activities | (153,308) | (121,230) |
Cash flows from financing activities | ||
Net change in deposits | 296,316 | 149,453 |
Cash received from stock option exercises | 89 | 305 |
Payment of Federal Home Loan Bank advances | (5,000) | 0 |
Proceeds from Federal Home Loan Bank advances | 0 | 10,000 |
Repurchase of common stock | (28) | (7,086) |
Cash dividend paid on common stock | (3,618) | (3,203) |
Payments related to tax-withholding for vested restricted stock awards | (433) | (108) |
Net cash provided by financing activities | 287,326 | 149,361 |
Net change in cash and cash equivalents | 81,835 | 1,945 |
Cash and cash equivalents at beginning of period | 106,310 | 85,943 |
Cash and cash equivalents at end of period | 188,145 | 87,888 |
Supplemental cash flow information | ||
Income taxes | 7,253 | 4,525 |
Interest | 2,852 | 8,429 |
Supplemental noncash disclosure: | ||
New commitments to low-income housing partnership investments | $ 3,500 | $ 3,477 |
Business Description
Business Description | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | 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 Bank operates primarily in the traditional banking business arena that includes accepting deposits and making loans and investments. The Bank’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 Bank 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, and one full-service branch is located in Carrollton, Texas. The Bank also has four loan production offices in Atlanta, Georgia, Aurora, Colorado, and Lynwood and Seattle, Washington . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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 the financial results for the interim periods presented, including eliminating intercompany transactions and balances. Certain items on the Consolidated Financial Statements and notes for the prior years have been reclassified to conform to the 2021 presentation. 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 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report on Form 10-K”) . 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 associated with 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. The Company has added the following significant accounting policies as a result of an asset purchase of loan portfolio from Hana Small Business Lending, Inc. (“Hana”) . Asset Purchase: On May 24, 2021, the Company completed the purchase of Hana’s loan portfolio and paid approximately $97.6 million that included loans of $100.0 million at a fair value discount of $8.9 million, servicing assets of $6.1 million and accrued interest receivable of $398 thousand. The following table summarizes the consideration paid for the loan portfolio and the amounts of assets purchased: ($ in thousands) Consideration Cash $ 97,631 Recognized amounts of identifiable assets purchased: Loans (1) $ 100,003 Loan discounts (8,867) Accrued interest receivable 398 Servicing assets 6,097 Total recognized identifiable assets $ 97,631 (1) Consists of $92.2 million of SBA loans, $6.9 million of PPP loans and $919 thousand of real estate loans. Asset Acquisitions : The Company follows the guidance in Accounting Standards Codification (“ASC”) 805, Business Combination , for determining the appropriate accounting treatment for acquisition. Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business , provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial test is met, the assets acquired would not represent a business combination, but rather an asset acquisition. If the transaction is deemed to be an asset acquisition, the cost accumulation and allocation model is used in which the cost of the acquisition is allocated on a relative fair value basis to the assets acquired. The Company concluded that this transaction did not qualify as a business combination and was accounted for as an asset acquisition in accordance with the “Acquisition of Assets Rather Than a Business” subsections of ASC 805-50 using a cost accumulation model. Purchased Performing Loans : The Company records purchased performing loans at fair value including a discount and recognizes discount accretion using the contractual cash flow method. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. The Company evaluated $100.0 million of the loans purchased in accordance with the provisions of ASC 310-20, Nonrefundable Fees and Other Costs and recorded an $8.9 million discount. There was no allowance for loan losses established as of June 30, 2021 for the purchased performing loans. A provision for loan losses is recorded for any further deterioration in these loans subsequent to the acquisition. Recent Accounting Pronouncements: In June 2016, Financial Accounting Standards Board (“ FASB ”) issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . 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 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 recognized in other comprehensive income (loss) . 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, the 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 in October 2019, the FASB voted to approve the proposed delay. The Company expects the adoption date of ASU 2016-13 will be January 2023. ASU 2016-13 will be applied using a modified retrospective approach through a cumulative effect adjustment to retained earnings, except for debt securities that an other-than-temporary impairment had been previously recognized will be applied using the prospective transition approach . 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, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU is a new accounting standard related to contracts or hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other reference rates that are expected to be discontinued. The new standard provides temporary optional expedients and exceptions regarding existing accounting requirements related to contractual modifications of contracts, hedging relationships, and other transactions that are affected by reference rate reform. In January 2021, the FASB issued ASU 2021-01, as subsequent amendments, which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from referent rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company adopted this guidance on a prospective basis in January 2021 and the guidance did not have a material impact on the Company’s Consolidated Financial Statements. The Company will assess the impact in conjunction with the reference rate transition as it occurs over the next two years. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This amendment simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The effective date will be January 2023. T he Company does not expect the adoption of this guidance will be material to its Consolidated Statement of Income. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of AFS debt securities as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 27,094 $ 256 $ (136) $ 27,214 Residential collateralized mortgage obligations 75,471 432 (582) 75,321 Total available-for-sale debt securities $ 102,565 $ 688 $ (718) $ 102,535 December 31, 2020 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities U.S. Government-sponsored agency securities $ 1,000 $ 5 $ — $ 1,005 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 19,281 $ 430 $ (7) $ 19,704 Residential collateralized mortgage obligations 70,318 814 (50) 71,082 Total available-for-sale debt securities $ 90,599 $ 1,249 $ (57) $ 91,791 There were no sales of AFS debt securities in the three and nine months ended September 30, 2021 and 2020. The amortized cost and estimated fair value of AFS debt securities at September 30, 2021, by contractual maturity, are shown below. ($ in thousands) Amortized Cost Fair Value Available-for-sale debt securities U.S. Government agencies or sponsored agency securities: After one year through five years $ 732 $ 766 After five years through ten years 3,990 4,133 After ten years 97,843 97,636 Total available-for-sale debt securities $ 102,565 $ 102,535 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 September 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss at September 30, 2021 and December 31, 2020: ($ in thousands) September 30, 2021 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale debt securities U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 20,201 $ (136) $ — $ — $ 20,201 $ (136) Residential collateralized mortgage obligations 47,696 (562) 2,626 (20) 50,322 (582) Total available-for-sale debt securities $ 67,897 $ (698) $ 2,626 $ (20) $ 70,523 $ (718) ($ in thousands) December 31, 2020 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale debt securities U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 3,089 $ (7) $ — $ — $ 3,089 $ (7) Residential collateralized mortgage obligations 13,593 (50) — — 13,593 (50) Total available-for-sale debt securities $ 16,682 $ (57) $ — $ — $ 16,682 $ (57) Management evaluates securities for other-than-temporary impairment (“OTTI”) on 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, along with the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or whether 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: (i) OTTI related to credit loss, which must be recognized in the income statement, and (ii) 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. The unrealized losses were primarily attributable to interest rate movement, not credit quality. These securities (Fannie Mae, Ginnie Mae, and Freddie Mac) are guaranteed or sponsored by agencies of the U.S. government, and the issuers of the securities are of high credit quality. The Company believes that the gross unrealized losses presented in the previous tables are temporary and no credit losses are expected. As a result, the Company expects full collection of the carrying amount of these securities, does not intend to sell the securities in an unrealized loss position, and it was more-likely-than-not the Company will not have to sell these securities prior to recovery of amortized cost. Accordingly, the Company does not consider these securities to be OTTI as of September 30, 2021. As of September 30, 2021 and December 31, 2020, there were no pledged securities to secure public deposits, borrowing and letters of credit from the Federal Home Loan Bank (“FHLB”) and the Board of Governors of the Federal Reserve System (“FRB”), and for other purposes required or permitted by law. The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheet as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, December 31, Federal Home Loan Bank stock $ 7,005 $ 6,043 Pacific Coast Bankers Bank stock 190 190 Mutual fund - CRA qualified 3,734 3,773 Total other investment securities $ 10,929 $ 10,006 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The following table presents the composition of the loan portfolio as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, December 31, Commercial real estate $ 688,430 $ 651,684 SBA loans—real estate 218,491 136,224 SBA loans—non-real estate (1) 85,134 75,151 Commercial and industrial 123,422 107,307 Home mortgage 115,255 128,212 Consumer 1,089 1,158 Gross loans receivable 1,231,821 1,099,736 Allowance for loan losses (14,134) (15,352) Loans receivable, net (2) $ 1,217,687 $ 1,084,384 (1) As of September 30, 2021 and December 31, 2020, SBA loans - non-real estate balances include SBA Paycheck Protection Program ("PPP") loans of $69.3 million and $64.9 million, respectively. (2) Includes net deferred loan fees or costs, unamortized premiums and unaccreted discounts of $(9.6) million and $(5.9) million as of September 30, 2021 and December 31, 2020, respectively. No loans were outstanding to related parties as of September 30, 2021 or December 31, 2020. The following table summarizes the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2021 and 2020: ($ in thousands) Three months ended September 30, 2021 Commercial SBA Loans SBA Commercial Home Consumer Total Beginning balance $ 8,456 $ 1,997 $ 228 $ 2,286 $ 1,704 $ 16 $ 14,687 (Reversal of) provision for loan losses (1) (241) 99 (35) (332) (46) (2) (557) Charge-offs — — — — — — — Recoveries — — 3 — — 1 4 Ending balance $ 8,215 $ 2,096 $ 196 $ 1,954 $ 1,658 $ 15 $ 14,134 Three months ended September 30, 2020 Beginning balance $ 7,145 $ 1,346 $ 253 $ 1,920 $ 2,074 $ 26 $ 12,764 (Reversal of) provision for loan losses (1) 994 412 18 (5) (15) (5) 1,399 Charge-offs — — — — — — — Recoveries — — — — — 1 1 Ending balance $ 8,139 $ 1,758 $ 271 $ 1,915 $ 2,059 $ 22 $ 14,164 (1) Excludes (reversal of) provision for uncollectible accrued interest receivable of $(327) thousand for the three months ended September 30, 2021. There was no provision for uncollectible accrued interest receivable for the three months ended September 30, 2020. Nine Months Ended September 30, 2021 ($ in thousands) Commercial SBA Loans SBA Commercial Home Consumer Total Beginning balance $ 8,505 $ 1,802 $ 278 $ 2,563 $ 2,185 $ 19 $ 15,352 (Reversal of) provision for loan losses (1) (290) 294 (58) (609) (527) (8) (1,198) Charge-offs — — (27) — — — (27) Recoveries — — 3 — — 4 7 Ending balance $ 8,215 $ 2,096 $ 196 $ 1,954 $ 1,658 $ 15 $ 14,134 Nine Months Ended September 30, 2020 Beginning balance $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 (Reversal of) provision for loan losses (1) 2,139 819 167 626 392 (13) 4,130 Charge-offs — — (45) — — — (45) Recoveries — — 28 — — 1 29 Ending balance $ 8,139 $ 1,758 $ 271 $ 1,915 $ 2,059 $ 22 $ 14,164 (1) Excludes (reversal of) provision for uncollectible accrued interest receivable of ($178) thousand for the nine months ended September 30, 2021. There was no provision for uncollectible accrued interest receivable for the nine months ended September 30, 2020. The following table presents the allowance for loan losses and recorded investment by portfolio segment and impairment methodology as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total Allowance for loan losses (1) : Commercial real estate $ — $ 8,215 $ 8,215 SBA loans—real estate 109 1,987 2,096 SBA loans—non-real estate — 196 196 Commercial and industrial 320 1,634 1,954 Home mortgage — 1,658 1,658 Consumer — 15 15 Total $ 429 $ 13,705 $ 14,134 Loans (2) : Commercial real estate $ — $ 690,391 $ 690,391 SBA loans—real estate 552 218,950 219,502 SBA loans—non-real estate — 85,644 85,644 Commercial and industrial 320 123,384 123,704 Home mortgage — 115,653 115,653 Consumer — 1,051 1,051 Total $ 872 $ 1,235,073 $ 1,235,945 December 31, 2020 Allowance for loan losses (1) : Commercial real estate $ — $ 8,505 $ 8,505 SBA loans—real estate — 1,802 1,802 SBA loans—non-real estate 87 191 278 Commercial and industrial 330 2,233 2,563 Home mortgage — 2,185 2,185 Consumer — 19 19 Total $ 417 $ 14,935 $ 15,352 Loans (2) : Commercial real estate $ — $ 654,235 $ 654,235 SBA loans—real estate — 136,873 136,873 SBA loans—non-real estate 174 75,477 75,651 Commercial and industrial 330 107,175 107,505 Home mortgage — 128,683 128,683 Consumer — 1,161 1,161 Total $ 504 $ 1,103,604 $ 1,104,108 (1) Excludes allowance for uncollectible accrued interest receivable of $465 thousand and $643 thousand as of September 30, 2021 and December 31, 2020, respectively. (2) Includes accrued interest receivable of $4.1 million and $4.4 million as of September 30, 2021 and December 31, 2020, respectively. The following table presents the recorded investment of individually impaired loans and the specific allowance for loan losses as of September 30, 2021 and December 31, 2020. ($ in thousands) September 30, 2021 December 31, 2020 (1) Unpaid Principal Balance Recorded Recorded Related Recorded Recorded Related SBA loans—real estate $ 786 $ 396 $ 156 $ 109 $ — $ — $ — SBA loans—non-real estate — — — — — 174 87 Commercial and industrial 320 — 320 320 — 330 330 Total $ 1,106 $ 396 $ 476 $ 429 $ — $ 504 $ 417 (1) The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans was not considered to be material. The following table presents the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans by portfolio segment for the three and nine months ended September 30, 2021 and 2020. The difference between interest income recognized and cash basis interest recognized was immaterial. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 ($ in thousands) Average Interest Average Interest Average Interest Average Interest SBA loans—real estate $ 540 $ — $ — $ — $ 450 $ — $ — $ — SBA loans—non-real estate — — 122 2 — — 124 5 Commercial and industrial 322 — 330 3 326 — 331 10 Total $ 862 $ — $ 452 $ 5 $ 776 $ — $ 455 $ 15 The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio segment, as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Nonaccrual Loans 90 or More Days Past Due & Still Accruing Total SBA loans—real estate $ 544 $ — $ 544 SBA loans—non-real estate 188 — 188 Commercial and industrial 320 — 320 Total $ 1,052 $ — $ 1,052 December 31, 2020 SBA loans—non-real estate $ 56 $ — $ 56 Commercial and industrial 330 — 330 Home mortgage 599 — 599 Total $ 985 $ — $ 985 Nonaccrual loans and loans past due 90 or more days and still accruing interest include both homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table represents the aging analysis of the recorded investment in past due loans as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 or More Days Past Due Total Past Due Total Current or Less Than 30 Total Commercial real estate $ — $ — $ — $ — $ 690,391 $ 690,391 SBA—real estate 52 396 148 596 218,906 219,502 SBA—non-real estate 213 20 162 395 85,249 85,644 Commercial and industrial — — — — 123,704 123,704 Home mortgage — 1,056 — $ 1,056 114,597 115,653 Consumer — — — — 1,051 1,051 $ 265 $ 1,472 $ 310 $ 2,047 $ 1,233,898 $ 1,235,945 December 31, 2020 Commercial real estate $ — $ — $ — $ — $ 654,235 $ 654,235 SBA—real estate — — — — 136,873 136,873 SBA—non-real estate — — — — 75,651 75,651 Commercial and industrial — — — — 107,505 107,505 Home mortgage — — 599 599 128,084 128,683 Consumer — — — — 1,161 1,161 $ — $ — $ 599 $ 599 $ 1,103,509 $ 1,104,108 Troubled Debt Restructurings : When, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to a borrower that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring (“TDR”), the balance of which totaled $320 thousand and $330 thousand as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 and December 31, 2020, the Company has allocated $320 thousand and $330 thousand of specific reserves to the loans classified as TDRs, respectively. The Company has not committed to lend any additional amounts to customers with outstanding loans that are classified as TDRs. Modifications made were primarily extensions of existing payment modifications on loans when the loan was previously identified as TDRs. There were no new loans identified as TDRs during the three and nine months ended September 30, 2021 or 2020. There were no payment defaults during the three and nine months ended September 30, 2021, or 2020, of loans that had been modified as TDRs within the previous twelve months. Loan Payment Deferrals : Through September 30, 2021, the Company has processed loan deferments for borrowers across multiple industries representing 225 loan accounts, with an aggregate loan balance of $250.7 million under the interagency guidance and Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). COVID-19 related modifications are generally not classified as TDRs due to the relief under the CARES Act and the interagency guidance, both of which the Company elected to apply. Additionally, the Company’s election to apply the TDR relief provided by the CARES Act and the interagency guidance impacts our regulatory capital ratios as these loan modifications related to COVID-19 are not adjusted to a higher risk-weighting normally required with TDR classification . As of September 30, 2021, 221 loans with an aggregate balance of $244.0 million, including 69 home mortgage loans with an aggregate balance of $30.2 million, have resumed regular payments. The following table represents the loan deferment status change by loan type as of September 30, 2021: Loan Deferment Status Change by Loan Type September 30, 2021 ($ in thousands) Total deferments Payment resumed Remaining deferments Loan Type Number of accounts Balance Number of accounts Balance Number of accounts Balance Loans, excluding home mortgage and consumer loans 156 $ 220,522 152 $ 213,774 4 $ 6,748 Home mortgage loans 69 30,205 69 30,205 — — Total 225 $ 250,727 221 $ 243,979 4 $ 6,748 Paycheck Protection Program loans : A provision in the CARES Act created the PPP, which is administered by the Small Business Administration (“SBA”). The PPP is intended to provide loans to small businesses to pay expenses related to their employees, rent, mortgage interest, and utilities. The loans may be forgiven conditioned upon the client providing applicable documentation evidencing their compliant with the terms of the program, including compliance regarding the use of funds. The Bank is an approved SBA lender and began accepting applications for the program on April 3, 2020. As of September 30, 2021, the Company had loans outstanding with a carrying value of $69.3 million, which were recorded in the SBA – non-real estate. Since the PPP’s inception through September 30, 2021, we have funded $154.5 million, and $88.8 million of principal forgiveness has been provided on qualifying PPP loans. Credit Quality Indicators : The Company monitor credit quality by evaluating various attributes and utilize such information in the evaluation of the appropriateness of the allowance for loan losses. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For consumer loans, a credit grade is established at inception, and generally only adjusted based on performance. The Company analyzes loans individually by classifying the loans according to their credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: 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. The following table presents the credit risk ratings by portfolio segment as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, 2021 Pass Special Mention Substandard Doubtful Total Commercial real estate $ 690,391 $ — $ — $ — $ 690,391 SBA loans—real estate 217,999 — 1,503 — 219,502 SBA loans—non-real estate 85,266 — 347 31 85,644 Commercial and industrial 123,384 — 320 — 123,704 Home mortgage 115,653 — — — 115,653 Consumer 1,051 — — — 1,051 $ 1,233,744 $ — $ 2,170 $ 31 $ 1,235,945 December 31, 2020 Commercial real estate $ 654,235 $ — $ — $ — $ 654,235 SBA loans—real estate 134,815 535 1,523 — 136,873 SBA loans—non-real estate 75,453 — 198 — 75,651 Commercial and industrial 102,500 — 5,005 — 107,505 Home mortgage 128,084 — 599 — 128,683 Consumer 1,161 — — — 1,161 $ 1,096,248 $ 535 $ 7,325 $ — $ 1,104,108 |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The Company’s premises and equipment consists of the following as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, 2021 December 31, 2020 Leasehold improvements $ 7,095 $ 6,878 Furniture and fixtures 3,377 3,307 Equipment and others 2,912 2,593 Total cost 13,384 12,778 Accumulated depreciation (9,185) (8,234) Net book value $ 4,199 $ 4,544 Total depreciation expense included in occupancy and equipment expenses was $332 thousand and $326 thousand for the three months ended September 30, 2021 and 2020, respectively, and $989 thousand and $981 thousand for the nine months ended September 30, 2021 and 2020, respectively. |
Servicing Assets
Servicing Assets | 9 Months Ended |
Sep. 30, 2021 | |
Servicing Asset [Abstract] | |
Servicing Assets | Servicing AssetsThe Company recognizes the right to service SBA loans for others as servicing assets when the servicing income the Company receives is more than adequate compensation. Servicing assets are accounted for using the amortization method. Under this method, the Company amortizes the servicing assets over the period of the economic life of the assets arising from estimated net servicing revenue. The Company periodically stratifies its servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. The Servicing assets totaled $12.4 million at September 30, 2021 and $7.4 million at December 31, 2020. Based on the results of the impairment test, there were no valuation allowance for impairment as of both September 30, 2021 and December 31, 2020. The following table presents an analysis of the changes in activity for loan servicing assets during the three and nine months ended September 30, 2021 and 2020 is as follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2021 2020 2021 2020 Beginning balance $ 12,903 $ 6,972 $ 7,360 $ 7,024 Additions from loans sold with servicing retained 533 585 1,380 1,354 Additions from purchase of servicing rights — — 6,097 — Amortized to expense (1,047) (335) (2,448) (1,156) Ending balance $ 12,389 $ 7,222 $ 12,389 $ 7,222 The fair value of the servicing assets was $15.1 million at September 30, 2021, which was determined using discount rates ranging from 3.8% to 10.0% and prepayment speeds ranging from 14.3% to 14.7%, depending on the stratification of the specific assets. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Deposits | Deposits Time deposits that exceed the FDIC insurance limit of $250,000 at September 30, 2021 and December 31, 2020 were $209.1 million and $200.2 million, respectively. The scheduled maturities of time deposits as of September 30, 2021 were as follows: ($ in thousands) September 30, 2021 Remainder of 2021 $ 127,429 2022 299,157 2023 3,132 2024 1,387 2025 768 Thereafter 206 Total $ 432,079 |
Borrowing Arrangements
Borrowing Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements As of September 30, 2021, the Company did not have any borrowings from the FHLB of San Francisco, compared with $5.0 million as of December 31, 2020, which had a zero interest rate under the Recovery Advance Program to support pandemic relief. The Company had a letter of credit with the FHLB in the amount of $67.0 million to secure public deposits as of both September 30, 2021 and December 31, 2020. The Company had available borrowings from the following institutions as of September 30, 2021: ($ in thousands) September 30, 2021 Federal Home Loan Bank—San Francisco $ 333,351 Federal Reserve Bank—San Francisco 138,607 Pacific Coast Bankers Bank 50,000 Zions Bank 25,000 First Horizon Bank 25,000 Total $ 571,958 The Company has pledged approximately $906.3 million and $909.2 million of loans as collateral for these lines of credit as of September 30, 2021 and December 31, 2020, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax expense was $3.2 million and $1.5 million for the three months ended September 30, 2021 and 2020, respectively, and $8.1 million and $3.6 million for the nine months ended September 30, 2021 and 2020, respectively. The effective income tax rate was 28.2% and 28.9% for the three months ended September 30, 2021 and 2020, respectively, and 29.0% and 27.9% for the nine months ended September 30, 2021 and 2020, 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 2017 and for state taxing authorities for tax years prior to 2016. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance-Sheet Credit Risk : In the normal course of business, the Company enters into commitments to extend credit such as loan commitments and standby letters of credits (“SBLC”s). These commitments expose the Company to varying degrees of credit and market risk and are subject to the same credit and market risk limitation reviews as those instruments recorded on the Consolidated Balance Sheet. Loan commitments represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These commitments generally have fixed expiration dates or contain termination clauses in the event the customer’s credit quality deteriorates. Since many of the commitments are expected to expire without being drawn upon, the commitment amounts do not necessarily represent future funding requirements. The Company applies the same credit underwriting criteria to extend loans and commitments to customers. Each customer’s credit worthiness is evaluated on a case-by-case basis. Collateral may be obtained based on management’s assessment of a customer’s credit. Collateral 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 credit-related commitments as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, December 31, Loan commitments $ 147,889 $ 75,740 Standby letters of credits 5,514 9,212 Commercial letters of credit 757 1,552 Total undisbursed credit related commitments $ 154,160 $ 86,504 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 : The Company invests in qualified affordable housing partnerships. The following table shows the Company’s investments in low-income housing partnerships, net, and related unfunded commitments as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, December 31, Investments in low-income housing partnerships $ 8,028 $ 4,932 Unfunded commitments to fund investments for low-income housing partnerships $ 5,020 $ 2,154 These balances are reflected in other assets and other liabilities on the Consolidated Balance Sheets. The Company expects to finish fulfilling these commitments during the year ending 2035. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credit and other benefits received and recognizes the amortization in income tax expense on the Consolidated Statements of Income and Comprehensive Income. The Company recognized amortization expense of $151 thousand and $107 thousand for the three months ended September 30, 2021 and 2020, respectively, and $405 thousand and $268 thousand for the nine months ended September 30, 2021 and 2020, respectively. Additionally, the Company recognized tax credits and other benefits received from the investments in low-income housing partnerships of $190 thousand and $83 thousand for the three months ended September 30, 2021 and 2020, and $506 thousand and $230 thousand for the nine months ended September 30, 2021 and 2020, respectively. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation The Company has three stock-based compensation plans currently in effect as of September 30, 2021, as described further below. Total compensation cost charged against income for these plans was $167 thousand and $403 thousand for the three and nine months ended September 30, 2021, and total compensation cost charged against income for these plans was $249 thousand and $965 thousand for the three and nine months ended September 30, 2020, respectively. 2005 Plan : In 2005, the Board of Directors and shareholders of the Bank approved a stock option plan for the benefit of directors and employees of the Bank (the “2005 Plan”). The 2005 Plan was assumed by the Company in 2016 at the time of the bank holding company reorganization. Under the 2005 Plan, the Bank was authorized to grant options to purchase up to 770,000 shares of the Company’s common stock. The exercise prices of the options may not be less than 100% of the fair value of the Company’s common stock at the date of grant. The options, when granted, vest either immediately or ratably over five years from the date of the grant and expire after ten years if not exercised. The 2005 Plan expired in 2015 and no future grants can be made under the 2005 Plan. A summary of the transactions under the 2005 Plan for the nine months ended September 30, 2021 is as follows: ($ in thousands, except per share data) Number of Weighted Aggregate Outstanding, as of January 1, 2021 100,000 $ 5.77 Options granted — — Options exercised (40,000) 1.60 Options forfeited — — Options expired — — Outstanding, as of September 30, 2021 60,000 6.28 $ 241 Fully vested and expected to vest 60,000 6.28 241 Vested 60,000 $ 6.28 $ 241 Information related to the 2005 Plan for the periods indicated is as follows: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Intrinsic value of options exercised $ — $ — $ 174 $ 370 Cash received from option exercises $ — $ — $ 64 $ 63 Tax benefit realized from option exercised $ — $ — $ 20 $ 17 The weighted average remaining contractual term of stock options outstanding under the 2005 Plan as of September 30, 2021 was 1.98 years. All stock options that are outstanding under the 2005 Plan were fully vested and exercisable as of September 30, 2021. 2010 Plan : In 2010, the Board of Directors of the Bank approved an equity incentive plan for granting stock options and restricted stock awards to key employees, officers, and non-employee directors of the Bank (the “2010 Plan”). In 2013, the 2010 Plan was amended and approved by the shareholders to increase the number of shares authorized to be issued from 1,350,000 shares of common stock to 2,500,000 shares of common stock. The 2010 Plan was assumed by the Company in 2016 at the time of the bank holding company reorganization. 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. The 2010 Plan expired in August 2020 and no future grants can be made under the 2010 Plan. Restricted stock awards issued under the 2010 Plan may or may not be subject to vesting provisions. Owners of the restricted stock awards shall have all 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 nine months ended September 30, 2021 is as follows: ($ in thousands, except per share data) Number of Weighted Aggregate Outstanding, as of January 1, 2021 220,000 $ 7.75 Options granted — — Options exercised (10,000) 2.53 Options forfeited — — Options expired — — Outstanding, as of September 30, 2021 210,000 8.00 $ 483 Fully vested and expected to vest 210,000 8.00 483 Vested 210,000 $ 8.00 $ 483 Information related to stock options exercised under the 2010 Plan for the periods indicated is as follows: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Intrinsic value of options exercised $ — $ — $ 86 $ 608 Cash received from option exercises $ — $ — $ 25 $ 242 Tax benefit realized from option exercised $ — $ — $ — $ 157 The weighted average remaining contractual term of stock options outstanding under the 2010 Plan as of September 30, 2021 was 2.50 years. All stock options that are outstanding under the 2010 Plan were fully vested and exercisable as of September 30, 2021. A summary of the changes in the Company’s non-vested restricted stock awards under the 2010 Plan for the nine months ended September 30, 2021 is as follows: ($ in thousands, except share data) Shares Issued Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested, as of January 1, 2021 154,500 $ 11.66 Awards granted — — Awards vested (128,500) 12.34 Awards forfeited (5,000) 9.69 Non-vested, as of September 30, 2021 21,000 $ 7.95 $ 216 Information related to non-vested restricted stock awards under the 2010 Plan for the periods indicated follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2021 2020 2021 2020 Tax benefit (provision) realized from awards vested $ — $ 24 $ (85) $ 21 The Company had approximately $69 thousand of unrecognized compensation cost related to unvested restricted stock awards under the 2010 Plan as of September 30, 2021. The Company expects to recognize these costs over a weighted average period of 2.43 years. 2021 Plan : In 2021, the Board of Directors of the Company approved a new equity incentive plan for granting stock options and restricted stock awards to key employees, officers, and non-employee directors of the Company and the Bank (the “2021 Plan”). The 2021 Plan was approved by the Company’s shareholders at the 2021 Annual Meeting. The number of shares authorized to be issued under the 2021 Plan was 1,500,000 shares of the Company’s common stock. The exercise prices of stock options granted under the plan may not be less than 100% of the fair value of the Company’s stock at the date of grant. There were no stock options granted under the 2021 Plan during the nine months ended September 30, 2021. Restricted stock awards issued under the 2021 Plan may or may not be subject to vesting provisions. Owners of the restricted stock awards shall have all rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date. A summary of the changes in the Company’s non-vested restricted stock awards under the 2021 Plan for the nine months ended September 30, 2021 is as follows: ($ in thousands, except share data) Shares Issued Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested, as of January 1, 2021 — $ — Awards granted 176,793 9.90 Awards vested (152) 9.90 Awards forfeited — — Non-vested, as of September 30, 2021 176,641 $ 9.90 $ 1,819 No tax benefits or expenses were realized from restricted stock awards under the 2021 Plan for the nine months ended September 30, 2021. |
Employee Benefit Plan
Employee Benefit Plan | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company sponsors a defined contribution plan, 401(k) profit sharing plan (the “401(k) Plan”), designed to provide retirement benefits financed by participant contributions, as well as contributions from the Company. Employees are eligible to participate in the 401(k) Plan as of the first day of the first calendar month after the date they have completed three months of service with the Company and have attained the age of 18. 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 $188 thousand and $170 thousand for the three months ended September 30, 2021 and 2020, respectively, $557 thousand and $526 thousand for the nine months ended September 30, 2021 and 2020, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date and is determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Assets and liabilities recorded at fair value on a recurring basis, such as AFS securities and equity investments. Additionally, from time to time, the Company records fair value adjustments on a nonrecurring basis. These nonrecurring adjustments typically involve application of lower of cost or fair value accounting and write-downs of individual assets. The Company classify its assets and liabilities recorded at fair value as one of the following three categories and a financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement: 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. Securities AFS : The fair values of investment securities AFS are determined by matrix pricing, which is a mathematical technique used to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Management obtains the fair values of investment securities on a monthly basis from a third-party pricing service. Other Investment : The Company has equity investment with readily determinable fair value. The fair value for the equity investment with readily determinable fair value is obtained from unadjusted quoted prices in active markets on the date of measurement and classified as Level 1. Assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 are summarized below: Fair Value Measure on a Recurring Basis ($ in thousands) September 30, 2021 Total Quoted Significant Other Significant U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 27,214 $ — $ 27,214 $ — Residential collateralized mortgage obligations $ 75,321 $ — $ 75,321 $ — Other investment securities: Mutual fund - CRA qualified $ 3,734 $ 3,734 $ — $ — December 31, 2020 U.S. Government sponsored agency securities $ 1,005 $ — $ 1,005 $ — U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 19,704 $ — $ 19,704 $ — Residential collateralized mortgage obligations $ 71,082 $ — $ 71,082 $ — Other investment securities: Mutual fund - CRA qualified $ 3,773 $ 3,773 $ — $ — There were no transfers between Level 1 and Level 2 for the three and nine months ended September 30, 2021 or 2020. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or fair value and write-downs of individual assets. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s judgment, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. 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. The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of September 30, 2021 and December 31, 2020: ($ in thousands) Fair Value Measure on a Nonrecurring Basis September 30, 2021 Total Quoted Significant Other Significant Impaired loans $ 443 $ — $ — $ 443 December 31, 2020 Impaired loans $ 87 $ — $ — $ 87 The following table presents the increase (decrease) in value of certain assets held at the end of the respective reporting periods presented for which a nonrecurring fair value adjustment was recognized during the period presented: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Impaired loans $ (106) $ — $ (99) $ (56) The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) Impaired loans: Commercial and industrial (2) $ — Income approach - discounted cash flows Discount rate 3.8% 3.8% SBA loans—real estate $ 47 Market approach Market data comparison (13.0)% to 18.0% (0.1)% SBA loans—real estate $ 396 Income approach - income capitalization Capitalization rate 12.0% 12.0% December 31, 2020 Impaired loans: Commercial and industrial (2) $ — Income approach - discounted cash flows Discount rate 3.8% 3.8% SBA loans—non-real estate $ 62 Income approach - discounted cash flows Discount rate 5.3% 5.3% SBA loans—non-real estate $ 25 Market approach Market data comparison (3.5)% to 7.1% 2.9% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2021 and December 31, 2020. (2) Applying fair value adjustments on the impaired loan through the full specific reserve allowance of the loan carrying value resulted in a zero fair value balance as of September 30, 2021 and December 31, 2020. Financial Instruments : The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet: ($ in thousands) September 30, 2021 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial Assets: Cash and cash equivalents $ 188,145 $ 188,145 $ — $ — $ 188,145 Loans held for sale $ 94,466 $ — $ 104,218 $ — $ 104,218 Loans receivable, net $ 1,217,687 $ — $ — $ 1,217,597 $ 1,217,597 Accrued interest receivable, net $ 3,931 $ 5 $ 267 $ 3,659 $ 3,931 Other investments: FHLB and PCBB stock $ 7,195 N/A N/A N/A N/A Time deposits placed $ 96 $ — $ 96 $ — $ 96 Servicing assets $ 12,389 $ — $ — $ 15,138 $ 15,138 Financial Liabilities: Deposit $ 1,496,406 $ — $ 1,497,270 $ — $ 1,497,270 Accrued interest payable $ 575 $ — $ 575 $ — $ 575 ($ in thousands) December 31, 2020 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial Assets: Cash and cash equivalents $ 106,310 $ 106,310 $ — $ — $ 106,310 Loans held for sale $ 26,659 $ — $ 26,659 $ — $ 26,659 Loans receivable, net $ 1,084,384 $ — $ — $ 1,109,217 $ 1,109,217 Accrued interest receivable, net $ 3,985 $ 7 $ 249 $ 3,729 $ 3,985 Other investments: FHLB and PCBB stock $ 6,233 N/A N/A N/A N/A Time deposits placed $ 95 $ — $ 95 $ — $ 95 Servicing assets $ 7,360 $ — $ — $ 9,106 $ 9,106 Financial Liabilities: Deposit $ 1,200,090 $ — $ 1,200,789 $ — $ 1,200,789 FHLB Advances $ 5,000 $ — $ 5,000 $ — $ 5,000 Accrued interest payable $ 1,021 $ — $ 1,021 $ — $ 1,021 |
Regulatory Capital Matters
Regulatory Capital Matters | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Matters | Regulatory Capital Matters Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. As of September 30, 2021, the capital conservation buffers for the Company is 2.50%. Management believes that as of September 30, 2021 and December 31, 2020, the Bank met all capital adequacy requirements to which they are subject to. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well. Unrealized gain or loss on securities available-for-sale is not included in computing regulatory capital. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: ($ in thousands) September 30, 2021 Actual (1) Required for Minimum Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 172,873 13.81 % N/A N/A N/A N/A Bank 170,171 13.60 % 100,135 8.00 % 125,169 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 158,126 12.63 % N/A N/A N/A N/A Bank 155,424 12.42 % 75,101 6.00 % 100,135 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 158,126 12.63 % N/A N/A N/A N/A Bank 155,424 12.42 % 56,326 4.50 % 81,360 6.50 % Tier 1 leverage (to average assets) Consolidated 158,126 9.75 % N/A N/A N/A N/A Bank 155,424 9.58 % 64,875 4.00 % 81,094 5.00 % (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. ($ in thousands) December 31, 2020 Actual (1) Required for Minimum Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 155,287 14.81 % N/A N/A N/A N/A Bank 152,232 14.52 % 83,859 8.00 % 104,824 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 142,147 13.56 % N/A N/A N/A N/A Bank 139,092 13.27 % 62,894 6.00 % 83,859 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 142,147 13.56 % N/A N/A N/A N/A Bank 139,092 13.27 % 47,171 4.50 % 68,136 6.50 % Tier 1 leverage (to average assets) Consolidated 142,147 10.55 % N/A N/A N/A N/A Bank 139,092 10.32 % 53,915 4.00 % 67,393 5.00 % (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 are as follows: ($ in thousands, except share and per share data) Three Months Ended 2021 2020 Basic Net income $ 8,250 $ 3,595 Undistributed earnings allocated to participating securities (109) (44) Net income allocated to common shares $ 8,141 $ 3,551 Weighted average common shares outstanding 15,133,407 15,148,833 Basic earnings per common share $ 0.54 $ 0.23 Diluted Net income allocated to common shares $ 8,141 $ 3,551 Weighted average common shares outstanding for basic earnings per common share 15,133,407 15,148,833 Add: Dilutive effects of assumed exercises of stock options 67,206 33,900 Average shares and dilutive potential common shares 15,200,613 15,182,733 Diluted earnings per common share $ 0.54 $ 0.23 No stock options for shares of common stock were antidilutive for the three months ended September 30, 2021. Stock options for 262 thousand shares of common stock were antidilutive for the three months ended September 30, 2020 . ($ in thousands, except share and per share data) Nine Months Ended 2021 2020 Basic Net income $ 19,706 $ 9,310 Undistributed earnings allocated to participating securities (216) (154) Net income allocated to common shares $ 19,490 $ 9,156 Weighted average common shares outstanding 15,071,327 15,235,617 Basic earnings per common share $ 1.29 $ 0.60 Diluted Net income allocated to common shares $ 19,490 $ 9,156 Weighted average common shares outstanding for basic earnings per common share 15,071,327 15,235,617 Add: Dilutive effects of assumed exercises of stock options 62,246 48,573 Average shares and dilutive potential common shares 15,133,573 15,284,190 Diluted earnings per common share $ 1.29 $ 0.60 No stock options for shares of common stock were antidilutive for the nine months ended September 30, 2021. Stock options for 212 thousand shares of common stock were antidilutive for the nine months ended September 30, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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 the financial results for the interim periods presented, including eliminating intercompany transactions and balances. Certain items on the Consolidated Financial Statements and notes for the prior years have been reclassified to conform to the 2021 presentation. 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 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report on Form 10-K”) . |
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 associated with 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. The Company has added the following significant accounting policies as a result of an asset purchase of loan portfolio from Hana Small Business Lending, Inc. (“Hana”) |
Asset Acquisitions | Asset Acquisitions : The Company follows the guidance in Accounting Standards Codification (“ASC”) 805, Business Combination , for determining the appropriate accounting treatment for acquisition. Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business , provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial test is met, the assets acquired would not represent a business combination, but rather an asset acquisition. If the transaction is deemed to be an asset acquisition, the cost accumulation and allocation model is used in which the cost of the acquisition is allocated on a relative fair value basis to the assets acquired. The Company concluded that this transaction did not qualify as a business combination and was accounted for as an asset acquisition in accordance with the “Acquisition of Assets Rather Than a Business” subsections of ASC 805-50 using a cost accumulation model. |
Purchased Performing Loans | Purchased Performing Loans : The Company records purchased performing loans at fair value including a discount and recognizes discount accretion using the contractual cash flow method. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. The Company evaluated $100.0 million of the loans purchased in accordance with the provisions of ASC 310-20, Nonrefundable Fees and Other Costs and recorded an $8.9 million discount. There was no allowance for loan losses established as of June 30, 2021 for the purchased performing loans. A provision for loan losses is recorded for any further deterioration in these loans subsequent to the acquisition. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In June 2016, Financial Accounting Standards Board (“ FASB ”) issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . 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 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 recognized in other comprehensive income (loss) . 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, the 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 in October 2019, the FASB voted to approve the proposed delay. The Company expects the adoption date of ASU 2016-13 will be January 2023. ASU 2016-13 will be applied using a modified retrospective approach through a cumulative effect adjustment to retained earnings, except for debt securities that an other-than-temporary impairment had been previously recognized will be applied using the prospective transition approach . 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, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU is a new accounting standard related to contracts or hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other reference rates that are expected to be discontinued. The new standard provides temporary optional expedients and exceptions regarding existing accounting requirements related to contractual modifications of contracts, hedging relationships, and other transactions that are affected by reference rate reform. In January 2021, the FASB issued ASU 2021-01, as subsequent amendments, which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from referent rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company adopted this guidance on a prospective basis in January 2021 and the guidance did not have a material impact on the Company’s Consolidated Financial Statements. The Company will assess the impact in conjunction with the reference rate transition as it occurs over the next two years. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This amendment simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The effective date will be January 2023. T he Company does not expect the adoption of this guidance will be material to its Consolidated Statement of Income. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Consideration Paid for Loan portfolio and Amounts of Assets Purchased | The following table summarizes the consideration paid for the loan portfolio and the amounts of assets purchased: ($ in thousands) Consideration Cash $ 97,631 Recognized amounts of identifiable assets purchased: Loans (1) $ 100,003 Loan discounts (8,867) Accrued interest receivable 398 Servicing assets 6,097 Total recognized identifiable assets $ 97,631 (1) Consists of $92.2 million of SBA loans, $6.9 million of PPP loans and $919 thousand of real estate loans. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Corresponding Amounts of Gross Unrealized Gains and Losses and Estimated Fair Value of AFS Debt Securities | The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of AFS debt securities as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 27,094 $ 256 $ (136) $ 27,214 Residential collateralized mortgage obligations 75,471 432 (582) 75,321 Total available-for-sale debt securities $ 102,565 $ 688 $ (718) $ 102,535 December 31, 2020 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities U.S. Government-sponsored agency securities $ 1,000 $ 5 $ — $ 1,005 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 19,281 $ 430 $ (7) $ 19,704 Residential collateralized mortgage obligations 70,318 814 (50) 71,082 Total available-for-sale debt securities $ 90,599 $ 1,249 $ (57) $ 91,791 |
Schedule of Amortized Cost and Estimated Fair Value of AFS Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of AFS debt securities at September 30, 2021, by contractual maturity, are shown below. ($ in thousands) Amortized Cost Fair Value Available-for-sale debt securities U.S. Government agencies or sponsored agency securities: After one year through five years $ 732 $ 766 After five years through ten years 3,990 4,133 After ten years 97,843 97,636 Total available-for-sale debt securities $ 102,565 $ 102,535 |
Schedule of Fair Value and Associated Gross Unrealized Losses on AFS Debt Securities by Length of Time in Continuous Loss | The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss at September 30, 2021 and December 31, 2020: ($ in thousands) September 30, 2021 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale debt securities U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 20,201 $ (136) $ — $ — $ 20,201 $ (136) Residential collateralized mortgage obligations 47,696 (562) 2,626 (20) 50,322 (582) Total available-for-sale debt securities $ 67,897 $ (698) $ 2,626 $ (20) $ 70,523 $ (718) ($ in thousands) December 31, 2020 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale debt securities U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 3,089 $ (7) $ — $ — $ 3,089 $ (7) Residential collateralized mortgage obligations 13,593 (50) — — 13,593 (50) Total available-for-sale debt securities $ 16,682 $ (57) $ — $ — $ 16,682 $ (57) |
Schedule of Other Investments Securities | The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheet as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, December 31, Federal Home Loan Bank stock $ 7,005 $ 6,043 Pacific Coast Bankers Bank stock 190 190 Mutual fund - CRA qualified 3,734 3,773 Total other investment securities $ 10,929 $ 10,006 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The following table presents the composition of the loan portfolio as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, December 31, Commercial real estate $ 688,430 $ 651,684 SBA loans—real estate 218,491 136,224 SBA loans—non-real estate (1) 85,134 75,151 Commercial and industrial 123,422 107,307 Home mortgage 115,255 128,212 Consumer 1,089 1,158 Gross loans receivable 1,231,821 1,099,736 Allowance for loan losses (14,134) (15,352) Loans receivable, net (2) $ 1,217,687 $ 1,084,384 (1) As of September 30, 2021 and December 31, 2020, SBA loans - non-real estate balances include SBA Paycheck Protection Program ("PPP") loans of $69.3 million and $64.9 million, respectively. (2) Includes net deferred loan fees or costs, unamortized premiums and unaccreted discounts of $(9.6) million and $(5.9) million as of September 30, 2021 and December 31, 2020, respectively. |
Schedule of Activity in Allowance for Loan Losses by Portfolio Segment | The following table summarizes the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2021 and 2020: ($ in thousands) Three months ended September 30, 2021 Commercial SBA Loans SBA Commercial Home Consumer Total Beginning balance $ 8,456 $ 1,997 $ 228 $ 2,286 $ 1,704 $ 16 $ 14,687 (Reversal of) provision for loan losses (1) (241) 99 (35) (332) (46) (2) (557) Charge-offs — — — — — — — Recoveries — — 3 — — 1 4 Ending balance $ 8,215 $ 2,096 $ 196 $ 1,954 $ 1,658 $ 15 $ 14,134 Three months ended September 30, 2020 Beginning balance $ 7,145 $ 1,346 $ 253 $ 1,920 $ 2,074 $ 26 $ 12,764 (Reversal of) provision for loan losses (1) 994 412 18 (5) (15) (5) 1,399 Charge-offs — — — — — — — Recoveries — — — — — 1 1 Ending balance $ 8,139 $ 1,758 $ 271 $ 1,915 $ 2,059 $ 22 $ 14,164 (1) Excludes (reversal of) provision for uncollectible accrued interest receivable of $(327) thousand for the three months ended September 30, 2021. There was no provision for uncollectible accrued interest receivable for the three months ended September 30, 2020. Nine Months Ended September 30, 2021 ($ in thousands) Commercial SBA Loans SBA Commercial Home Consumer Total Beginning balance $ 8,505 $ 1,802 $ 278 $ 2,563 $ 2,185 $ 19 $ 15,352 (Reversal of) provision for loan losses (1) (290) 294 (58) (609) (527) (8) (1,198) Charge-offs — — (27) — — — (27) Recoveries — — 3 — — 4 7 Ending balance $ 8,215 $ 2,096 $ 196 $ 1,954 $ 1,658 $ 15 $ 14,134 Nine Months Ended September 30, 2020 Beginning balance $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 (Reversal of) provision for loan losses (1) 2,139 819 167 626 392 (13) 4,130 Charge-offs — — (45) — — — (45) Recoveries — — 28 — — 1 29 Ending balance $ 8,139 $ 1,758 $ 271 $ 1,915 $ 2,059 $ 22 $ 14,164 (1) Excludes (reversal of) provision for uncollectible accrued interest receivable of ($178) thousand for the nine months ended September 30, 2021. There was no provision for uncollectible accrued interest receivable for the nine months ended September 30, 2020. The following table presents the allowance for loan losses and recorded investment by portfolio segment and impairment methodology as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total Allowance for loan losses (1) : Commercial real estate $ — $ 8,215 $ 8,215 SBA loans—real estate 109 1,987 2,096 SBA loans—non-real estate — 196 196 Commercial and industrial 320 1,634 1,954 Home mortgage — 1,658 1,658 Consumer — 15 15 Total $ 429 $ 13,705 $ 14,134 Loans (2) : Commercial real estate $ — $ 690,391 $ 690,391 SBA loans—real estate 552 218,950 219,502 SBA loans—non-real estate — 85,644 85,644 Commercial and industrial 320 123,384 123,704 Home mortgage — 115,653 115,653 Consumer — 1,051 1,051 Total $ 872 $ 1,235,073 $ 1,235,945 December 31, 2020 Allowance for loan losses (1) : Commercial real estate $ — $ 8,505 $ 8,505 SBA loans—real estate — 1,802 1,802 SBA loans—non-real estate 87 191 278 Commercial and industrial 330 2,233 2,563 Home mortgage — 2,185 2,185 Consumer — 19 19 Total $ 417 $ 14,935 $ 15,352 Loans (2) : Commercial real estate $ — $ 654,235 $ 654,235 SBA loans—real estate — 136,873 136,873 SBA loans—non-real estate 174 75,477 75,651 Commercial and industrial 330 107,175 107,505 Home mortgage — 128,683 128,683 Consumer — 1,161 1,161 Total $ 504 $ 1,103,604 $ 1,104,108 (1) Excludes allowance for uncollectible accrued interest receivable of $465 thousand and $643 thousand as of September 30, 2021 and December 31, 2020, respectively. (2) Includes accrued interest receivable of $4.1 million and $4.4 million as of September 30, 2021 and December 31, 2020, respectively. |
Schedule of Impaired Loans and Specific Allowance | The following table presents the recorded investment of individually impaired loans and the specific allowance for loan losses as of September 30, 2021 and December 31, 2020. ($ in thousands) September 30, 2021 December 31, 2020 (1) Unpaid Principal Balance Recorded Recorded Related Recorded Recorded Related SBA loans—real estate $ 786 $ 396 $ 156 $ 109 $ — $ — $ — SBA loans—non-real estate — — — — — 174 87 Commercial and industrial 320 — 320 320 — 330 330 Total $ 1,106 $ 396 $ 476 $ 429 $ — $ 504 $ 417 (1) The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans was not considered to be material. The following table presents the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans by portfolio segment for the three and nine months ended September 30, 2021 and 2020. The difference between interest income recognized and cash basis interest recognized was immaterial. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 ($ in thousands) Average Interest Average Interest Average Interest Average Interest SBA loans—real estate $ 540 $ — $ — $ — $ 450 $ — $ — $ — SBA loans—non-real estate — — 122 2 — — 124 5 Commercial and industrial 322 — 330 3 326 — 331 10 Total $ 862 $ — $ 452 $ 5 $ 776 $ — $ 455 $ 15 |
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment | The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio segment, as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Nonaccrual Loans 90 or More Days Past Due & Still Accruing Total SBA loans—real estate $ 544 $ — $ 544 SBA loans—non-real estate 188 — 188 Commercial and industrial 320 — 320 Total $ 1,052 $ — $ 1,052 December 31, 2020 SBA loans—non-real estate $ 56 $ — $ 56 Commercial and industrial 330 — 330 Home mortgage 599 — 599 Total $ 985 $ — $ 985 |
Schedule of Aging Analysis of Recorded Investment in Past Due Loans | The following table represents the aging analysis of the recorded investment in past due loans as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 or More Days Past Due Total Past Due Total Current or Less Than 30 Total Commercial real estate $ — $ — $ — $ — $ 690,391 $ 690,391 SBA—real estate 52 396 148 596 218,906 219,502 SBA—non-real estate 213 20 162 395 85,249 85,644 Commercial and industrial — — — — 123,704 123,704 Home mortgage — 1,056 — $ 1,056 114,597 115,653 Consumer — — — — 1,051 1,051 $ 265 $ 1,472 $ 310 $ 2,047 $ 1,233,898 $ 1,235,945 December 31, 2020 Commercial real estate $ — $ — $ — $ — $ 654,235 $ 654,235 SBA—real estate — — — — 136,873 136,873 SBA—non-real estate — — — — 75,651 75,651 Commercial and industrial — — — — 107,505 107,505 Home mortgage — — 599 599 128,084 128,683 Consumer — — — — 1,161 1,161 $ — $ — $ 599 $ 599 $ 1,103,509 $ 1,104,108 |
Schedule of Loan Deferment Status Change by Loan Type | The following table represents the loan deferment status change by loan type as of September 30, 2021: Loan Deferment Status Change by Loan Type September 30, 2021 ($ in thousands) Total deferments Payment resumed Remaining deferments Loan Type Number of accounts Balance Number of accounts Balance Number of accounts Balance Loans, excluding home mortgage and consumer loans 156 $ 220,522 152 $ 213,774 4 $ 6,748 Home mortgage loans 69 30,205 69 30,205 — — Total 225 $ 250,727 221 $ 243,979 4 $ 6,748 |
Schedule of Credit Risk Ratings by Portfolio Segment | The following table presents the credit risk ratings by portfolio segment as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, 2021 Pass Special Mention Substandard Doubtful Total Commercial real estate $ 690,391 $ — $ — $ — $ 690,391 SBA loans—real estate 217,999 — 1,503 — 219,502 SBA loans—non-real estate 85,266 — 347 31 85,644 Commercial and industrial 123,384 — 320 — 123,704 Home mortgage 115,653 — — — 115,653 Consumer 1,051 — — — 1,051 $ 1,233,744 $ — $ 2,170 $ 31 $ 1,235,945 December 31, 2020 Commercial real estate $ 654,235 $ — $ — $ — $ 654,235 SBA loans—real estate 134,815 535 1,523 — 136,873 SBA loans—non-real estate 75,453 — 198 — 75,651 Commercial and industrial 102,500 — 5,005 — 107,505 Home mortgage 128,084 — 599 — 128,683 Consumer 1,161 — — — 1,161 $ 1,096,248 $ 535 $ 7,325 $ — $ 1,104,108 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The Company’s premises and equipment consists of the following as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, 2021 December 31, 2020 Leasehold improvements $ 7,095 $ 6,878 Furniture and fixtures 3,377 3,307 Equipment and others 2,912 2,593 Total cost 13,384 12,778 Accumulated depreciation (9,185) (8,234) Net book value $ 4,199 $ 4,544 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Servicing Asset [Abstract] | |
Schedule of Changes in Activity for Loan Servicing Assets | The following table presents an analysis of the changes in activity for loan servicing assets during the three and nine months ended September 30, 2021 and 2020 is as follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2021 2020 2021 2020 Beginning balance $ 12,903 $ 6,972 $ 7,360 $ 7,024 Additions from loans sold with servicing retained 533 585 1,380 1,354 Additions from purchase of servicing rights — — 6,097 — Amortized to expense (1,047) (335) (2,448) (1,156) Ending balance $ 12,389 $ 7,222 $ 12,389 $ 7,222 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | The scheduled maturities of time deposits as of September 30, 2021 were as follows: ($ in thousands) September 30, 2021 Remainder of 2021 $ 127,429 2022 299,157 2023 3,132 2024 1,387 2025 768 Thereafter 206 Total $ 432,079 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings Available to the Company from Institutions | The Company had available borrowings from the following institutions as of September 30, 2021: ($ in thousands) September 30, 2021 Federal Home Loan Bank—San Francisco $ 333,351 Federal Reserve Bank—San Francisco 138,607 Pacific Coast Bankers Bank 50,000 Zions Bank 25,000 First Horizon Bank 25,000 Total $ 571,958 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Distribution of Undisbursed Credit-related Commitments | The following table shows the distribution of undisbursed credit-related commitments as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, December 31, Loan commitments $ 147,889 $ 75,740 Standby letters of credits 5,514 9,212 Commercial letters of credit 757 1,552 Total undisbursed credit related commitments $ 154,160 $ 86,504 |
Schedule of Investments in Low Income Housing Partnerships, Net and Related Unfunded Commitments | The following table shows the Company’s investments in low-income housing partnerships, net, and related unfunded commitments as of September 30, 2021 and December 31, 2020: ($ in thousands) September 30, December 31, Investments in low-income housing partnerships $ 8,028 $ 4,932 Unfunded commitments to fund investments for low-income housing partnerships $ 5,020 $ 2,154 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Stock Options Activity | A summary of the transactions under the 2005 Plan for the nine months ended September 30, 2021 is as follows: ($ in thousands, except per share data) Number of Weighted Aggregate Outstanding, as of January 1, 2021 100,000 $ 5.77 Options granted — — Options exercised (40,000) 1.60 Options forfeited — — Options expired — — Outstanding, as of September 30, 2021 60,000 6.28 $ 241 Fully vested and expected to vest 60,000 6.28 241 Vested 60,000 $ 6.28 $ 241 A summary of stock options outstanding under the 2010 Plan for the nine months ended September 30, 2021 is as follows: ($ in thousands, except per share data) Number of Weighted Aggregate Outstanding, as of January 1, 2021 220,000 $ 7.75 Options granted — — Options exercised (10,000) 2.53 Options forfeited — — Options expired — — Outstanding, as of September 30, 2021 210,000 8.00 $ 483 Fully vested and expected to vest 210,000 8.00 483 Vested 210,000 $ 8.00 $ 483 |
Summary of Information Related to Stock Option Plan | Information related to the 2005 Plan for the periods indicated is as follows: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Intrinsic value of options exercised $ — $ — $ 174 $ 370 Cash received from option exercises $ — $ — $ 64 $ 63 Tax benefit realized from option exercised $ — $ — $ 20 $ 17 Information related to stock options exercised under the 2010 Plan for the periods indicated is as follows: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Intrinsic value of options exercised $ — $ — $ 86 $ 608 Cash received from option exercises $ — $ — $ 25 $ 242 Tax benefit realized from option exercised $ — $ — $ — $ 157 |
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 nine months ended September 30, 2021 is as follows: ($ in thousands, except share data) Shares Issued Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested, as of January 1, 2021 154,500 $ 11.66 Awards granted — — Awards vested (128,500) 12.34 Awards forfeited (5,000) 9.69 Non-vested, as of September 30, 2021 21,000 $ 7.95 $ 216 A summary of the changes in the Company’s non-vested restricted stock awards under the 2021 Plan for the nine months ended September 30, 2021 is as follows: ($ in thousands, except share data) Shares Issued Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested, as of January 1, 2021 — $ — Awards granted 176,793 9.90 Awards vested (152) 9.90 Awards forfeited — — Non-vested, as of September 30, 2021 176,641 $ 9.90 $ 1,819 |
Summary of Information Related to Non-vested Restricted Stock Awards | Information related to non-vested restricted stock awards under the 2010 Plan for the periods indicated follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2021 2020 2021 2020 Tax benefit (provision) realized from awards vested $ — $ 24 $ (85) $ 21 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020 are summarized below: Fair Value Measure on a Recurring Basis ($ in thousands) September 30, 2021 Total Quoted Significant Other Significant U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 27,214 $ — $ 27,214 $ — Residential collateralized mortgage obligations $ 75,321 $ — $ 75,321 $ — Other investment securities: Mutual fund - CRA qualified $ 3,734 $ 3,734 $ — $ — December 31, 2020 U.S. Government sponsored agency securities $ 1,005 $ — $ 1,005 $ — U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 19,704 $ — $ 19,704 $ — Residential collateralized mortgage obligations $ 71,082 $ — $ 71,082 $ — Other investment securities: Mutual fund - CRA qualified $ 3,773 $ 3,773 $ — $ — |
Summary of Fair Value Hierarchy and Fair Value of Assets that Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis | The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of September 30, 2021 and December 31, 2020: ($ in thousands) Fair Value Measure on a Nonrecurring Basis September 30, 2021 Total Quoted Significant Other Significant Impaired loans $ 443 $ — $ — $ 443 December 31, 2020 Impaired loans $ 87 $ — $ — $ 87 |
Summary of Increase (Decrease) In Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment | The following table presents the increase (decrease) in value of certain assets held at the end of the respective reporting periods presented for which a nonrecurring fair value adjustment was recognized during the period presented: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Impaired loans $ (106) $ — $ (99) $ (56) |
Summary of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements | The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) Impaired loans: Commercial and industrial (2) $ — Income approach - discounted cash flows Discount rate 3.8% 3.8% SBA loans—real estate $ 47 Market approach Market data comparison (13.0)% to 18.0% (0.1)% SBA loans—real estate $ 396 Income approach - income capitalization Capitalization rate 12.0% 12.0% December 31, 2020 Impaired loans: Commercial and industrial (2) $ — Income approach - discounted cash flows Discount rate 3.8% 3.8% SBA loans—non-real estate $ 62 Income approach - discounted cash flows Discount rate 5.3% 5.3% SBA loans—non-real estate $ 25 Market approach Market data comparison (3.5)% to 7.1% 2.9% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2021 and December 31, 2020. (2) Applying fair value adjustments on the impaired loan through the full specific reserve allowance of the loan carrying value resulted in a zero fair value balance as of September 30, 2021 and December 31, 2020. |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | Financial Instruments : The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet: ($ in thousands) September 30, 2021 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial Assets: Cash and cash equivalents $ 188,145 $ 188,145 $ — $ — $ 188,145 Loans held for sale $ 94,466 $ — $ 104,218 $ — $ 104,218 Loans receivable, net $ 1,217,687 $ — $ — $ 1,217,597 $ 1,217,597 Accrued interest receivable, net $ 3,931 $ 5 $ 267 $ 3,659 $ 3,931 Other investments: FHLB and PCBB stock $ 7,195 N/A N/A N/A N/A Time deposits placed $ 96 $ — $ 96 $ — $ 96 Servicing assets $ 12,389 $ — $ — $ 15,138 $ 15,138 Financial Liabilities: Deposit $ 1,496,406 $ — $ 1,497,270 $ — $ 1,497,270 Accrued interest payable $ 575 $ — $ 575 $ — $ 575 ($ in thousands) December 31, 2020 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial Assets: Cash and cash equivalents $ 106,310 $ 106,310 $ — $ — $ 106,310 Loans held for sale $ 26,659 $ — $ 26,659 $ — $ 26,659 Loans receivable, net $ 1,084,384 $ — $ — $ 1,109,217 $ 1,109,217 Accrued interest receivable, net $ 3,985 $ 7 $ 249 $ 3,729 $ 3,985 Other investments: FHLB and PCBB stock $ 6,233 N/A N/A N/A N/A Time deposits placed $ 95 $ — $ 95 $ — $ 95 Servicing assets $ 7,360 $ — $ — $ 9,106 $ 9,106 Financial Liabilities: Deposit $ 1,200,090 $ — $ 1,200,789 $ — $ 1,200,789 FHLB Advances $ 5,000 $ — $ 5,000 $ — $ 5,000 Accrued interest payable $ 1,021 $ — $ 1,021 $ — $ 1,021 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Summary of Actual and Required Capital Amounts and Ratios | The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: ($ in thousands) September 30, 2021 Actual (1) Required for Minimum Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 172,873 13.81 % N/A N/A N/A N/A Bank 170,171 13.60 % 100,135 8.00 % 125,169 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 158,126 12.63 % N/A N/A N/A N/A Bank 155,424 12.42 % 75,101 6.00 % 100,135 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 158,126 12.63 % N/A N/A N/A N/A Bank 155,424 12.42 % 56,326 4.50 % 81,360 6.50 % Tier 1 leverage (to average assets) Consolidated 158,126 9.75 % N/A N/A N/A N/A Bank 155,424 9.58 % 64,875 4.00 % 81,094 5.00 % (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. ($ in thousands) December 31, 2020 Actual (1) Required for Minimum Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 155,287 14.81 % N/A N/A N/A N/A Bank 152,232 14.52 % 83,859 8.00 % 104,824 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 142,147 13.56 % N/A N/A N/A N/A Bank 139,092 13.27 % 62,894 6.00 % 83,859 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 142,147 13.56 % N/A N/A N/A N/A Bank 139,092 13.27 % 47,171 4.50 % 68,136 6.50 % Tier 1 leverage (to average assets) Consolidated 142,147 10.55 % N/A N/A N/A N/A Bank 139,092 10.32 % 53,915 4.00 % 67,393 5.00 % (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The factors used in the earnings per share computation are as follows: ($ in thousands, except share and per share data) Three Months Ended 2021 2020 Basic Net income $ 8,250 $ 3,595 Undistributed earnings allocated to participating securities (109) (44) Net income allocated to common shares $ 8,141 $ 3,551 Weighted average common shares outstanding 15,133,407 15,148,833 Basic earnings per common share $ 0.54 $ 0.23 Diluted Net income allocated to common shares $ 8,141 $ 3,551 Weighted average common shares outstanding for basic earnings per common share 15,133,407 15,148,833 Add: Dilutive effects of assumed exercises of stock options 67,206 33,900 Average shares and dilutive potential common shares 15,200,613 15,182,733 Diluted earnings per common share $ 0.54 $ 0.23 No stock options for shares of common stock were antidilutive for the three months ended September 30, 2021. Stock options for 262 thousand shares of common stock were antidilutive for the three months ended September 30, 2020 . ($ in thousands, except share and per share data) Nine Months Ended 2021 2020 Basic Net income $ 19,706 $ 9,310 Undistributed earnings allocated to participating securities (216) (154) Net income allocated to common shares $ 19,490 $ 9,156 Weighted average common shares outstanding 15,071,327 15,235,617 Basic earnings per common share $ 1.29 $ 0.60 Diluted Net income allocated to common shares $ 19,490 $ 9,156 Weighted average common shares outstanding for basic earnings per common share 15,071,327 15,235,617 Add: Dilutive effects of assumed exercises of stock options 62,246 48,573 Average shares and dilutive potential common shares 15,133,573 15,284,190 Diluted earnings per common share $ 1.29 $ 0.60 |
Business Description - Addition
Business Description - Additional Information (Details) | Sep. 30, 2021branchoffice | Jun. 01, 2016 |
Business Description [Line Items] | ||
Number of full service branches | branch | 9 | |
Number of loan production offices | office | 4 | |
Open Bank | ||
Business Description [Line Items] | ||
Percentage of voting equity interests acquired | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | May 24, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Loans | $ 1,217,687 | $ 1,084,384 | |||||
Servicing assets | 12,389 | 7,360 | |||||
Accrued interest receivable | 3,931 | 3,985 | |||||
Loans receivable, allowance | $ 14,134 | $ 14,687 | $ 15,352 | $ 14,164 | $ 12,764 | $ 10,050 | |
Hana Small Business Lending Inc | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Payments to purchase loan portfolio | $ 97,631 | ||||||
Loans | 100,003 | ||||||
Fair value discount of loans | 8,867 | ||||||
Servicing assets | 6,097 | ||||||
Accrued interest receivable | 398 | ||||||
Purchased Performing Loans | Hana Small Business Lending Inc | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Loans | 100,000 | ||||||
Fair value discount of loans | $ 8,900 | ||||||
Loans receivable, allowance | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Consideration Paid for Loan Portfolio and Amounts of Assets Purchased (Details) - USD ($) $ in Thousands | May 24, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans | $ 1,217,687 | $ 1,084,384 | |
Accrued interest receivable | 3,931 | 3,985 | |
Servicing assets | 12,389 | 7,360 | |
Total assets | $ 1,679,911 | $ 1,366,826 | |
Hana Small Business Lending Inc | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Cash | $ 97,631 | ||
Loans | 100,003 | ||
Loan discounts | (8,867) | ||
Accrued interest receivable | 398 | ||
Servicing assets | 6,097 | ||
Total assets | 97,631 | ||
SBA Loans | Hana Small Business Lending Inc | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans | 92,200 | ||
SBA Loans | PPP loans | Hana Small Business Lending Inc | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans | 6,900 | ||
Real Estate Loans | Hana Small Business Lending Inc | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans | $ 919 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost, Corresponding Amounts of Gross Unrealized Gains and Losses and Estimated Fair Value of AFS Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities [Line Items] | ||
Available for sale, Amortized Cost | $ 102,565 | $ 90,599 |
Gross Unrealized Gains | 688 | 1,249 |
Gross Unrealized Losses | (718) | (57) |
Available-for-sale debt securities, at fair value | 102,535 | 91,791 |
U.S. Government-sponsored agency securities | ||
Securities [Line Items] | ||
Available for sale, Amortized Cost | 1,000 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | 0 | |
Available-for-sale debt securities, at fair value | 1,005 | |
Residential mortgage-backed securities | ||
Securities [Line Items] | ||
Available for sale, Amortized Cost | 27,094 | 19,281 |
Gross Unrealized Gains | 256 | 430 |
Gross Unrealized Losses | (136) | (7) |
Available-for-sale debt securities, at fair value | 27,214 | 19,704 |
Residential collateralized mortgage obligations | ||
Securities [Line Items] | ||
Available for sale, Amortized Cost | 75,471 | 70,318 |
Gross Unrealized Gains | 432 | 814 |
Gross Unrealized Losses | (582) | (50) |
Available-for-sale debt securities, at fair value | $ 75,321 | $ 71,082 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Securities [Line Items] | |||||
Proceeds from sale of AFS securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Equity investment in mutual fund with readily determinable fair value | 3,700,000 | 3,700,000 | $ 3,800,000 | ||
Other Income | |||||
Securities [Line Items] | |||||
Unrealized holding gains (losses) of mutual fund | (14,000) | $ 0 | (73,000) | $ 89,000 | |
Pledged Securities | |||||
Securities [Line Items] | |||||
Number of pledged securities | $ 0 | $ 0 | $ 0 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Estimated Fair Value of Securities AFS Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Available for sale, Amortized Cost | $ 102,565 | $ 90,599 |
Fair Value | ||
Available for sale, Fair Value | 102,535 | $ 91,791 |
U.S. Government Agencies or Sponsored Agency Securities | ||
Amortized Cost | ||
After one year through five years | 732 | |
After five years through ten years | 3,990 | |
After ten years | 97,843 | |
Available for sale, Amortized Cost | 102,565 | |
Fair Value | ||
After one year through five years | 766 | |
After five years through ten years | 4,133 | |
After ten years | 97,636 | |
Available for sale, Fair Value | $ 102,535 |
Securities -Schedule of Fair Va
Securities -Schedule of Fair Value and Associated Gross Unrealized Losses on AFS Debt Securities by Length of Time in Continuous Loss (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities [Line Items] | ||
Fair Value, Less Than 12 Months | $ 67,897 | $ 16,682 |
Gross Unrealized Losses, Less Than 12 Months | (698) | (57) |
Fair Value, 12 Months or Longer | 2,626 | 0 |
Gross Unrealized Losses, 12 Months or Longer | (20) | 0 |
Total Fair Value | 70,523 | 16,682 |
Total Gross Unrealized Losses | (718) | (57) |
Residential mortgage-backed securities | ||
Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 20,201 | 3,089 |
Gross Unrealized Losses, Less Than 12 Months | (136) | (7) |
Fair Value, 12 Months or Longer | 0 | 0 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Total Fair Value | 20,201 | 3,089 |
Total Gross Unrealized Losses | (136) | (7) |
Residential collateralized mortgage obligations | ||
Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 47,696 | 13,593 |
Gross Unrealized Losses, Less Than 12 Months | (562) | (50) |
Fair Value, 12 Months or Longer | 2,626 | 0 |
Gross Unrealized Losses, 12 Months or Longer | (20) | 0 |
Total Fair Value | 50,322 | 13,593 |
Total Gross Unrealized Losses | $ (582) | $ (50) |
Securities - Schedule of Other
Securities - Schedule of Other Investments Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities [Line Items] | ||
Equity investment in mutual fund with readily determinable fair value | $ 3,700 | $ 3,800 |
Other Investments | ||
Securities [Line Items] | ||
Federal Home Loan Bank stock | 7,005 | 6,043 |
Pacific Coast Bankers Bank stock | 190 | 190 |
Equity investment in mutual fund with readily determinable fair value | 3,734 | 3,773 |
Total other investment securities | $ 10,929 | $ 10,006 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Gross loans receivable | $ 1,231,821 | $ 1,099,736 | ||||
Allowance for loan losses | (14,134) | $ (14,687) | (15,352) | $ (14,164) | $ (12,764) | $ (10,050) |
Loans receivable, net | 1,217,687 | 1,084,384 | ||||
Deferred loan fees, unamortized premiums and unaccreted discounts | 9,600 | 5,900 | ||||
Real Estate | Commercial Real Estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Gross loans receivable | 688,430 | 651,684 | ||||
Real Estate | SBA Loans—Real Estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Gross loans receivable | 218,491 | 136,224 | ||||
SBA Loans Non- Real Estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Gross loans receivable | 85,134 | 75,151 | ||||
Allowance for loan losses | (196) | (228) | (278) | (271) | (253) | (121) |
SBA Loans Non- Real Estate | PPP loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Gross loans receivable | 69,300 | 64,900 | ||||
Commercial and Industrial | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Gross loans receivable | 123,422 | 107,307 | ||||
Allowance for loan losses | (1,954) | (2,286) | (2,563) | (1,915) | (1,920) | (1,289) |
Home Mortgage | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Gross loans receivable | 115,255 | 128,212 | ||||
Allowance for loan losses | (1,658) | (1,704) | (2,185) | (2,059) | (2,074) | (1,667) |
Consumer | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Gross loans receivable | 1,089 | 1,158 | ||||
Allowance for loan losses | (15) | (16) | (19) | (22) | (26) | (34) |
Commercial Real Estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses | (8,215) | (8,456) | (8,505) | (8,139) | (7,145) | (6,000) |
SBA Loans Real Estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses | $ (2,096) | $ (1,997) | $ (1,802) | $ (1,758) | $ (1,346) | $ (939) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | |||||
Loans, related parties | $ 0 | $ 0 | $ 0 | ||
Recorded investment in troubled debt restructurings | 320,000 | 320,000 | 330,000 | ||
Specific reserves to loans classified as TDRs | $ 320,000 | $ 320,000 | 330,000 | ||
Loans identified as TDRs | loan | 0 | 0 | 0 | 0 | |
Financing receivable, modifications, subsequent default, recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Gross loans receivable | 1,235,945,000 | 1,235,945,000 | 1,104,108,000 | ||
SBA PPP Loan | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans funded | 154,500,000 | 154,500,000 | |||
Loans forgiven | (88,800,000) | (88,800,000) | |||
Home Mortgage | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 115,653,000 | 115,653,000 | 128,683,000 | ||
SBA Loans Non- Real Estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 85,644,000 | 85,644,000 | $ 75,651,000 | ||
SBA Loans Non- Real Estate | SBA PPP Loan | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | $ 69,300,000 | $ 69,300,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Schedule of Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Analysis of allowance for loan losses | ||||
Beginning balance | $ 14,687,000 | $ 12,764,000 | $ 15,352,000 | $ 10,050,000 |
(Reversal of) provision for loan losses | (557,000) | 1,399,000 | (1,198,000) | 4,130,000 |
Charge-offs | 0 | 0 | (27,000) | (45,000) |
Recoveries | 4,000 | 1,000 | 7,000 | 29,000 |
Ending balance | 14,134,000 | 14,164,000 | 14,134,000 | 14,164,000 |
(Reversal of) provision for loan losses | (884,000) | 1,399,000 | (1,376,000) | 4,130,000 |
Uncollectible Accrued Interest Receivable | ||||
Analysis of allowance for loan losses | ||||
(Reversal of) provision for loan losses | (327,000) | 0 | (178,000) | 0 |
Commercial Real Estate | ||||
Analysis of allowance for loan losses | ||||
Beginning balance | 8,456,000 | 7,145,000 | 8,505,000 | 6,000,000 |
(Reversal of) provision for loan losses | (241,000) | 994,000 | (290,000) | 2,139,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 8,215,000 | 8,139,000 | 8,215,000 | 8,139,000 |
SBA Loans Real Estate | ||||
Analysis of allowance for loan losses | ||||
Beginning balance | 1,997,000 | 1,346,000 | 1,802,000 | 939,000 |
(Reversal of) provision for loan losses | 99,000 | 412,000 | 294,000 | 819,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 2,096,000 | 1,758,000 | 2,096,000 | 1,758,000 |
SBA Loans Non- Real Estate | ||||
Analysis of allowance for loan losses | ||||
Beginning balance | 228,000 | 253,000 | 278,000 | 121,000 |
(Reversal of) provision for loan losses | (35,000) | 18,000 | (58,000) | 167,000 |
Charge-offs | 0 | 0 | (27,000) | (45,000) |
Recoveries | 3,000 | 0 | 3,000 | 28,000 |
Ending balance | 196,000 | 271,000 | 196,000 | 271,000 |
Commercial and Industrial | ||||
Analysis of allowance for loan losses | ||||
Beginning balance | 2,286,000 | 1,920,000 | 2,563,000 | 1,289,000 |
(Reversal of) provision for loan losses | (332,000) | (5,000) | (609,000) | 626,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 1,954,000 | 1,915,000 | 1,954,000 | 1,915,000 |
Home Mortgage | ||||
Analysis of allowance for loan losses | ||||
Beginning balance | 1,704,000 | 2,074,000 | 2,185,000 | 1,667,000 |
(Reversal of) provision for loan losses | (46,000) | (15,000) | (527,000) | 392,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 1,658,000 | 2,059,000 | 1,658,000 | 2,059,000 |
Consumer | ||||
Analysis of allowance for loan losses | ||||
Beginning balance | 16,000 | 26,000 | 19,000 | 34,000 |
(Reversal of) provision for loan losses | (2,000) | (5,000) | (8,000) | (13,000) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 1,000 | 1,000 | 4,000 | 1,000 |
Ending balance | $ 15,000 | $ 22,000 | $ 15,000 | $ 22,000 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses and Recorded Investment by Portfolio Segment and Impairment Methodology (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for Loans Individually Evaluated for Impairment | $ 429 | $ 417 | ||||
Allowance for Loan Collectively Evaluated for Impairment | 13,705 | 14,935 | ||||
Total | 14,134 | $ 14,687 | 15,352 | $ 14,164 | $ 12,764 | $ 10,050 |
Loans Individually Evaluated for Impairment | 872 | 504 | ||||
Loans Collectively Evaluated for Impairment | 1,235,073 | 1,103,604 | ||||
Total | 1,235,945 | 1,104,108 | ||||
Allowance for uncollectible accrued interest receivable | 465 | 643 | ||||
Accrued interest receivable | 4,100 | 4,400 | ||||
Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Loan Collectively Evaluated for Impairment | 8,215 | 8,505 | ||||
Total | 8,215 | 8,456 | 8,505 | 8,139 | 7,145 | 6,000 |
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 690,391 | 654,235 | ||||
Total | 690,391 | 654,235 | ||||
SBA Loans Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for Loans Individually Evaluated for Impairment | 109 | 0 | ||||
Allowance for Loan Collectively Evaluated for Impairment | 1,987 | 1,802 | ||||
Total | 2,096 | 1,997 | 1,802 | 1,758 | 1,346 | 939 |
Loans Individually Evaluated for Impairment | 552 | 0 | ||||
Loans Collectively Evaluated for Impairment | 218,950 | 136,873 | ||||
Total | 219,502 | 136,873 | ||||
SBA Loans Non- Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 87 | ||||
Allowance for Loan Collectively Evaluated for Impairment | 196 | 191 | ||||
Total | 196 | 228 | 278 | 271 | 253 | 121 |
Loans Individually Evaluated for Impairment | 0 | 174 | ||||
Loans Collectively Evaluated for Impairment | 85,644 | 75,477 | ||||
Total | 85,644 | 75,651 | ||||
Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for Loans Individually Evaluated for Impairment | 320 | 330 | ||||
Allowance for Loan Collectively Evaluated for Impairment | 1,634 | 2,233 | ||||
Total | 1,954 | 2,286 | 2,563 | 1,915 | 1,920 | 1,289 |
Loans Individually Evaluated for Impairment | 320 | 330 | ||||
Loans Collectively Evaluated for Impairment | 123,384 | 107,175 | ||||
Total | 123,704 | 107,505 | ||||
Home Mortgage | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Loan Collectively Evaluated for Impairment | 1,658 | 2,185 | ||||
Total | 1,658 | 1,704 | 2,185 | 2,059 | 2,074 | 1,667 |
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 115,653 | 128,683 | ||||
Total | 115,653 | 128,683 | ||||
Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Loan Collectively Evaluated for Impairment | 15 | 19 | ||||
Total | 15 | $ 16 | 19 | $ 22 | $ 26 | $ 34 |
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 1,051 | 1,161 | ||||
Total | $ 1,051 | $ 1,161 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Recorded Investment of Individually Impaired Loans and Specific Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Unpaid Principal Balance | $ 1,106 | |
Recorded Investment With No Allowance | 396 | $ 0 |
Recorded Investment With Allowance | 476 | 504 |
Related Allowance | 429 | 417 |
SBA Loans Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Unpaid Principal Balance | 786 | |
Recorded Investment With No Allowance | 396 | 0 |
Recorded Investment With Allowance | 156 | 0 |
Related Allowance | 109 | 0 |
SBA Loans Non- Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Unpaid Principal Balance | 0 | |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 174 |
Related Allowance | 0 | 87 |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Unpaid Principal Balance | 320 | |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 320 | 330 |
Related Allowance | $ 320 | $ 330 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Schedule of Average Recorded Investment In Impaired Loans and Amount of Interest Income Recognized on Impaired Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | $ 862 | $ 452 | $ 776 | $ 455 |
Interest Income Recognized | 0 | 5 | 0 | 15 |
SBA Loans Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 540 | 0 | 450 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
SBA Loans Non- Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 0 | 122 | 0 | 124 |
Interest Income Recognized | 0 | 2 | 0 | 5 |
Commercial and Industrial | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 322 | 330 | 326 | 331 |
Interest Income Recognized | $ 0 | $ 3 | $ 0 | $ 10 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | $ 1,052 | $ 985 |
Loans 90 or More Days Past Due & Still Accruing | 0 | 0 |
Total | 1,052 | 985 |
SBA Loans Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 544 | |
Loans 90 or More Days Past Due & Still Accruing | 0 | |
Total | 544 | |
SBA Loans Non- Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 188 | 56 |
Loans 90 or More Days Past Due & Still Accruing | 0 | 0 |
Total | 188 | 56 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 320 | 330 |
Loans 90 or More Days Past Due & Still Accruing | 0 | 0 |
Total | $ 320 | 330 |
Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 599 | |
Loans 90 or More Days Past Due & Still Accruing | 0 | |
Total | $ 599 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Schedule of Aging Analysis of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | $ 2,047 | $ 599 |
Total Current or Less Than 30 Days Past Due | 1,233,898 | 1,103,509 |
Total | 1,235,945 | 1,104,108 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Total Current or Less Than 30 Days Past Due | 690,391 | 654,235 |
Total | 690,391 | 654,235 |
SBA Loans Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 596 | 0 |
Total Current or Less Than 30 Days Past Due | 218,906 | 136,873 |
Total | 219,502 | 136,873 |
SBA Loans Non- Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 395 | 0 |
Total Current or Less Than 30 Days Past Due | 85,249 | 75,651 |
Total | 85,644 | 75,651 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Total Current or Less Than 30 Days Past Due | 123,704 | 107,505 |
Total | 123,704 | 107,505 |
Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,056 | 599 |
Total Current or Less Than 30 Days Past Due | 114,597 | 128,084 |
Total | 115,653 | 128,683 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Total Current or Less Than 30 Days Past Due | 1,051 | 1,161 |
Total | 1,051 | 1,161 |
30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 265 | 0 |
30-59 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
30-59 Days Past Due | SBA Loans Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 52 | 0 |
30-59 Days Past Due | SBA Loans Non- Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 213 | 0 |
30-59 Days Past Due | Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
30-59 Days Past Due | Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
30-59 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,472 | 0 |
60-89 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
60-89 Days Past Due | SBA Loans Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 396 | 0 |
60-89 Days Past Due | SBA Loans Non- Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 20 | 0 |
60-89 Days Past Due | Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
60-89 Days Past Due | Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 1,056 | 0 |
60-89 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
90 or More Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 310 | 599 |
90 or More Days Pass Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
90 or More Days Pass Due | SBA Loans Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 148 | 0 |
90 or More Days Pass Due | SBA Loans Non- Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 162 | 0 |
90 or More Days Pass Due | Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
90 or More Days Pass Due | Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 0 | 599 |
90 or More Days Pass Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | $ 0 | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Schedule of Loan Deferment Status Change by Loan Type (Details) $ in Thousands | Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($) |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total deferments under the CARES Act, Balance | $ 320 | $ 330 |
Payment resumed or paid off, Balance | 1,235,945 | 1,104,108 |
Home mortgage loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Payment resumed or paid off, Balance | $ 115,653 | $ 128,683 |
Payment Deferral | Total deferments under the CARES Act | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total deferments under the CARES Act, Number of accounts | loan | 225 | |
Payment resumed or paid off, Balance | $ 250,727 | |
Payment Deferral | Remaining deferments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Payment resumed or paid off, Balance | $ 6,748 | |
Remaining deferments, Number of accounts | loan | 4 | |
Payment Deferral | payment resumed or paid off | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Payment resumed or paid off, Number of accounts | loan | 221 | |
Payment resumed or paid off, Balance | $ 243,979 | |
Payment Deferral | Loans, excluding home mortgage and consumer loans | Total deferments under the CARES Act | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total deferments under the CARES Act, Number of accounts | loan | 156 | |
Payment resumed or paid off, Balance | $ 220,522 | |
Payment Deferral | Loans, excluding home mortgage and consumer loans | Remaining deferments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Payment resumed or paid off, Balance | $ 6,748 | |
Remaining deferments, Number of accounts | loan | 4 | |
Payment Deferral | Loans, excluding home mortgage and consumer loans | payment resumed or paid off | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Payment resumed or paid off, Number of accounts | loan | 152 | |
Payment resumed or paid off, Balance | $ 213,774 | |
Payment Deferral | Home mortgage loans | Total deferments under the CARES Act | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total deferments under the CARES Act, Number of accounts | loan | 69 | |
Payment resumed or paid off, Balance | $ 30,205 | |
Payment Deferral | Home mortgage loans | Remaining deferments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Payment resumed or paid off, Balance | $ 0 | |
Remaining deferments, Number of accounts | loan | 0 | |
Payment Deferral | Home mortgage loans | payment resumed or paid off | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Payment resumed or paid off, Number of accounts | loan | 69 | |
Payment resumed or paid off, Balance | $ 30,205 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Schedule of Credit Risk Ratings by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 1,235,945 | $ 1,104,108 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,233,744 | 1,096,248 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 535 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 2,170 | 7,325 |
Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 31 | 0 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 690,391 | 654,235 |
Commercial Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 690,391 | 654,235 |
Commercial Real Estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Real Estate | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
SBA Loans Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 219,502 | 136,873 |
SBA Loans Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 217,999 | 134,815 |
SBA Loans Real Estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 535 |
SBA Loans Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,503 | 1,523 |
SBA Loans Real Estate | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
SBA Loans Non- Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 85,644 | 75,651 |
SBA Loans Non- Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 85,266 | 75,453 |
SBA Loans Non- Real Estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
SBA Loans Non- Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 347 | 198 |
SBA Loans Non- Real Estate | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 31 | 0 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 123,704 | 107,505 |
Commercial and Industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 123,384 | 102,500 |
Commercial and Industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial and Industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 320 | 5,005 |
Commercial and Industrial | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Home Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 115,653 | 128,683 |
Home Mortgage | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 115,653 | 128,084 |
Home Mortgage | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Home Mortgage | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 599 |
Home Mortgage | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,051 | 1,161 |
Consumer | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,051 | 1,161 |
Consumer | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total cost | $ 13,384 | $ 12,778 |
Accumulated depreciation | (9,185) | (8,234) |
Net book value | 4,199 | 4,544 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 7,095 | 6,878 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 3,377 | 3,307 |
Equipment and others | ||
Property Plant And Equipment [Line Items] | ||
Total cost | $ 2,912 | $ 2,593 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 332 | $ 326 | $ 989 | $ 981 |
Servicing Assets - Additional I
Servicing Assets - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Servicing Assets At Amortized Value [Line Items] | |||
Servicing assets | $ 12,389,000 | $ 7,360,000 | |
Valuation allowance for impairment | 0 | 0 | |
Servicing assets | $ 15,138,000 | $ 8,800,000 | $ 9,106,000 |
Minimum | |||
Servicing Assets At Amortized Value [Line Items] | |||
Fair value of servicing assets, discount rates | 3.80% | 5.40% | |
Fair value of servicing assets, prepayment speed | 14.30% | 14.50% | |
Maximum | |||
Servicing Assets At Amortized Value [Line Items] | |||
Fair value of servicing assets, discount rates | 10.00% | 11.90% | |
Fair value of servicing assets, prepayment speed | 14.70% | 14.90% |
Servicing Assets - Schedule of
Servicing Assets - Schedule of Changes in Activity for Loan Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Analysis of Changes in Activity | ||||
Beginning balance | $ 12,903 | $ 6,972 | $ 7,360 | $ 7,024 |
Amortized to expense | (1,047) | (335) | (2,448) | (1,156) |
Ending balance | 12,389 | 7,222 | 12,389 | 7,222 |
Loans sold with servicing retained | ||||
Analysis of Changes in Activity | ||||
Additions | 533 | 585 | 1,380 | 1,354 |
Purchase of servicing rights | ||||
Analysis of Changes in Activity | ||||
Additions | $ 0 | $ 0 | $ 6,097 | $ 0 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Time Deposits [Line Items] | ||
Time deposits greater than $250,000 | $ 209,091 | $ 200,210 |
Principal Officers, Directors, and Affiliates | ||
Time Deposits [Line Items] | ||
Deposits from principal officers, directors, and their affiliates | $ 1,800 | $ 1,500 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Deposits [Abstract] | |
Remainder of 2021 | $ 127,429 |
2022 | 299,157 |
2023 | 3,132 |
2024 | 1,387 |
2025 | 768 |
Thereafter | 206 |
Total | $ 432,079 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Federal home loan bank borrowings | $ 0 | $ 5,000 |
Interest rate under the Recovery Advance Program to support pandemic relief | 0.00% | |
Letter of credit | 67,000 | $ 67,000 |
Collateral pledged | $ 906,300 | $ 909,200 |
Borrowing Arrangements - Summar
Borrowing Arrangements - Summary of Borrowings Available to the Company from Institutions (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 571,958 |
Federal Home Loan Bank—San Francisco | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 333,351 |
Federal Reserve Bank—San Francisco | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 138,607 |
Pacific Coast Bankers Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 50,000 |
Zions Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 25,000 |
First Horizon Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 25,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,246,000 | $ 1,459,000 | $ 8,054,000 | $ 3,594,000 |
Effective income tax rate | 28.20% | 28.90% | 29.00% | 27.90% |
Unrealized tax benefits | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Distribution of Undisbursed Credit-related Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Undisbursed Credit Related Commitments [Line Items] | ||
Other Commitment | $ 154,160 | $ 86,504 |
Loan commitments | ||
Undisbursed Credit Related Commitments [Line Items] | ||
Other Commitment | 147,889 | 75,740 |
Standby letters of credits | ||
Undisbursed Credit Related Commitments [Line Items] | ||
Letters of Credit Outstanding, Amount | 5,514 | 9,212 |
Commercial letters of credit | ||
Undisbursed Credit Related Commitments [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 757 | $ 1,552 |
Commitments and Contingencies_2
Commitments and Contingencies - Investments in Low Income Housing Partnerships, Net and Related Unfunded Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Investments in low-income housing partnerships | $ 8,028 | $ 4,932 |
Unfunded commitments to fund investments for low-income housing partnerships | $ 5,020 | $ 2,154 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Recognized amortization expense of investments in low-income housing partnership | $ 151 | $ 107 | $ 405 | $ 268 |
Recognized tax credits and other benefits received | $ 190 | $ 83 | $ 506 | $ 230 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation expense | $ 167,000 | $ 249,000 | $ 403,000 | $ 965,000 | ||
2005 Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation shares authorized under stock option plans (in shares) | 770,000 | 770,000 | ||||
Percent of the fair value options granted | 100.00% | |||||
Shares available for future grant (in shares) | 0 | 0 | ||||
Weighted average remaining contractual term stock options outstanding | 1 year 11 months 23 days | |||||
Number of options outstanding, Granted (in shares) | 0 | |||||
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 (in shares) | 0 | 0 | 2,500,000 | 1,350,000 | ||
Percent of the fair value options granted | 100.00% | |||||
Weighted average remaining contractual term stock options outstanding | 2 years 6 months | |||||
Unrecognized compensation costs related to unvested restricted stock awards | $ 69,000 | $ 69,000 | ||||
Unrecognized compensation costs weighted average period | 2 years 5 months 4 days | |||||
Number of options outstanding, Granted (in shares) | 0 | |||||
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] | ||||||
Tax benefits or expenses realized from awards | $ 0 | $ 24,000 | $ (85,000) | $ 21,000 | ||
2021 Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for future grant (in shares) | 1,323,207 | 1,323,207 | ||||
Unrecognized compensation costs related to unvested restricted stock awards | $ 1,600,000 | $ 1,600,000 | ||||
Unrecognized compensation costs weighted average period | 3 years 6 months | |||||
2021 Plan | Restricted Stock Awards | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation shares authorized under stock option plans (in shares) | 1,500,000 | 1,500,000 | ||||
Percent of the fair value options granted | 100.00% | |||||
Number of options outstanding, Granted (in shares) | 0 | |||||
Tax benefits or expenses realized from awards | $ 0 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock-based Compensation Stock Options Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
2005 Plan | |
Stock Option Activity | |
Number of options outstanding, Beginning of period (in shares) | shares | 100,000 |
Number of options outstanding, Granted (in shares) | shares | 0 |
Number of options outstanding, Exercised (in shares) | shares | (40,000) |
Number of options outstanding, Forfeited (in shares) | shares | 0 |
Number of options outstanding, Expired (in shares) | shares | 0 |
Number of options outstanding, Ending of period (in shares) | shares | 60,000 |
Weighted Average Exercise Price | |
Weighted average exercise price, Outstanding beginning (USD per share) | $ / shares | $ 5.77 |
Weighted average exercise price, Granted (USD per share) | $ / shares | 0 |
Weighted average exercise price, Exercised (USD per share) | $ / shares | 1.60 |
Weighted average exercise price, Forfeited (USD per share) | $ / shares | 0 |
Weighted average exercise price, Expired (USD per share) | $ / shares | 0 |
Weighted average exercise price, Outstanding ending (USD per share) | $ / shares | $ 6.28 |
Stock Option Additional Disclosures | |
Number of options outstanding, Full vested and expected to vest (in shares) | shares | 60,000 |
Number of options outstanding, Vested (in shares) | shares | 60,000 |
Weighted average exercise price, Full vested and expected to vest (USD per share) | $ / shares | $ 6.28 |
Weighted average exercise price, Vested (USD per share) | $ / shares | $ 6.28 |
Aggregate intrinsic value, Outstanding | $ | $ 241 |
Aggregate intrinsic value, Fully vested and expected to vest | $ | 241 |
Aggregate intrinsic value, Vested | $ | $ 241 |
2010 Plan | |
Stock Option Activity | |
Number of options outstanding, Beginning of period (in shares) | shares | 220,000 |
Number of options outstanding, Granted (in shares) | shares | 0 |
Number of options outstanding, Exercised (in shares) | shares | (10,000) |
Number of options outstanding, Forfeited (in shares) | shares | 0 |
Number of options outstanding, Expired (in shares) | shares | 0 |
Number of options outstanding, Ending of period (in shares) | shares | 210,000 |
Weighted Average Exercise Price | |
Weighted average exercise price, Outstanding beginning (USD per share) | $ / shares | $ 7.75 |
Weighted average exercise price, Granted (USD per share) | $ / shares | 0 |
Weighted average exercise price, Exercised (USD per share) | $ / shares | 2.53 |
Weighted average exercise price, Forfeited (USD per share) | $ / shares | 0 |
Weighted average exercise price, Expired (USD per share) | $ / shares | 0 |
Weighted average exercise price, Outstanding ending (USD per share) | $ / shares | $ 8 |
Stock Option Additional Disclosures | |
Number of options outstanding, Full vested and expected to vest (in shares) | shares | 210,000 |
Number of options outstanding, Vested (in shares) | shares | 210,000 |
Weighted average exercise price, Full vested and expected to vest (USD per share) | $ / shares | $ 8 |
Weighted average exercise price, Vested (USD per share) | $ / shares | $ 8 |
Aggregate intrinsic value, Outstanding | $ | $ 483 |
Aggregate intrinsic value, Fully vested and expected to vest | $ | 483 |
Aggregate intrinsic value, Vested | $ | $ 483 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Information Related to Stock Option Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Cash received from option exercises | $ 89 | $ 305 | ||
2005 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | $ 0 | $ 0 | 174 | 370 |
Cash received from option exercises | 0 | 0 | 64 | 63 |
Tax benefit realized from option exercised | 0 | 0 | 20 | 17 |
2010 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | 0 | 0 | 86 | 608 |
Cash received from option exercises | 0 | 0 | 25 | 242 |
Tax benefit realized from option exercised | 0 | 0 | 0 | 157 |
2010 Plan | Restricted Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Tax benefit (provision) realized from awards vested | $ 0 | $ 24 | $ (85) | $ 21 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Changes in Non-vested Restricted Stock Awards (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
2010 Plan | |
Equity Instruments Other than Options Activity | |
Shares issued, Awards granted (in shares) | shares | 0 |
Shares issued, Awards forfeited (in shares) | shares | (5,000) |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, Awards granted (USD per share) | $ / shares | $ 0 |
Weighted average grant date fair value, Awards forfeited (USD per share) | $ / shares | $ 9.69 |
2010 Plan | Restricted Stock Awards | |
Equity Instruments Other than Options Activity | |
Shares issued, Non-vested beginning of period (in shares) | shares | 154,500 |
Shares issued, Awards vested (in shares) | shares | (128,500) |
Shares issued, Non-vested end of period (in shares) | shares | 21,000 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, Non-vested beginning of period (USD per share) | $ / shares | $ 11.66 |
Weighted average grant date fair value, Awards vested (USD per share) | $ / shares | 12.34 |
Weighted average grant date fair value, Non-vested end of period (USD per share) | $ / shares | $ 7.95 |
Aggregate intrinsic value, Non-vested end of year | $ | $ 216 |
2021 Plan | Restricted Stock Awards | |
Equity Instruments Other than Options Activity | |
Shares issued, Non-vested beginning of period (in shares) | shares | 0 |
Shares issued, Awards granted (in shares) | shares | 176,793 |
Shares issued, Awards vested (in shares) | shares | (152) |
Shares issued, Awards forfeited (in shares) | shares | 0 |
Shares issued, Non-vested end of period (in shares) | shares | 176,641 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, Non-vested beginning of period (USD per share) | $ / shares | $ 0 |
Weighted average grant date fair value, Awards granted (USD per share) | $ / shares | 9.90 |
Weighted average grant date fair value, Awards vested (USD per share) | $ / shares | 9.90 |
Weighted average grant date fair value, Awards forfeited (USD per share) | $ / shares | 0 |
Weighted average grant date fair value, Non-vested end of period (USD per share) | $ / shares | $ 9.90 |
Aggregate intrinsic value, Non-vested end of year | $ | $ 1,819 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - 401 (k) Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Employee minimum service period | 3 months | |||
Eligibility age of employees for plan | 18 years | |||
Employer contribution amount | $ 188 | $ 170 | $ 557 | $ 526 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | $ 102,535 | $ 91,791 |
Other investment securities: | ||
Equity investment in mutual fund with readily determinable fair value | 3,700 | 3,800 |
U.S. Government-sponsored agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 1,005 | |
Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 27,214 | 19,704 |
Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 75,321 | 71,082 |
Fair Value, Measurements, Recurring | ||
Other investment securities: | ||
Equity investment in mutual fund with readily determinable fair value | 3,734 | 3,773 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 1,005 | |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 27,214 | 19,704 |
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 75,321 | 71,082 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Other investment securities: | ||
Equity investment in mutual fund with readily determinable fair value | 3,734 | 3,773 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | U.S. Government-sponsored agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Other investment securities: | ||
Equity investment in mutual fund with readily determinable fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 1,005 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 27,214 | 19,704 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 75,321 | 71,082 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Other investment securities: | ||
Equity investment in mutual fund with readily determinable fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Fair Value Hierarchy and Fair Value of Assets That Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Impaired [Line Items] | ||
Impaired loans | $ 1,217,597 | $ 1,109,217 |
Quoted Prices in Active Markets (Level 1) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 1,217,597 | 1,109,217 |
Fair Value, Measurements, Nonrecurring | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 443 | 87 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets (Level 1) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | $ 443 | $ 87 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Increase (Decrease) In Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Measurements, Nonrecurring | Loans Receivable | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans | $ (106) | $ 0 | $ (99) | $ (56) |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Summary of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,217,597 | $ 1,109,217 |
Summary of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements | The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of September 30, 2021 and December 31, 2020: September 30, 2021 ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) Impaired loans: Commercial and industrial (2) $ — Income approach - discounted cash flows Discount rate 3.8% 3.8% SBA loans—real estate $ 47 Market approach Market data comparison (13.0)% to 18.0% (0.1)% SBA loans—real estate $ 396 Income approach - income capitalization Capitalization rate 12.0% 12.0% December 31, 2020 Impaired loans: Commercial and industrial (2) $ — Income approach - discounted cash flows Discount rate 3.8% 3.8% SBA loans—non-real estate $ 62 Income approach - discounted cash flows Discount rate 5.3% 5.3% SBA loans—non-real estate $ 25 Market approach Market data comparison (3.5)% to 7.1% 2.9% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2021 and December 31, 2020. (2) Applying fair value adjustments on the impaired loan through the full specific reserve allowance of the loan carrying value resulted in a zero fair value balance as of September 30, 2021 and December 31, 2020. | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,217,597 | 1,109,217 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 443 | 87 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 443 | $ 87 |
Fair Value, Measurements, Nonrecurring | Commercial and Industrial | Valuation Technique, Discounted Cash Flow | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.038 | 0.038 |
Fair Value, Measurements, Nonrecurring | Commercial and Industrial | Weighted Average | Valuation Technique, Discounted Cash Flow | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.038 | 0.038 |
Fair Value, Measurements, Nonrecurring | Commercial and Industrial | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 0 | $ 0 |
Fair Value, Measurements, Nonrecurring | SBA Loans Non- Real Estate | Valuation Technique, Discounted Cash Flow | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.053 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Non- Real Estate | Minimum | Valuation, Market Approach | Market Data Comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | (0.035) | |
Fair Value, Measurements, Nonrecurring | SBA Loans Non- Real Estate | Maximum | Valuation, Market Approach | Market Data Comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.071 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Non- Real Estate | Weighted Average | Valuation Technique, Discounted Cash Flow | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.053 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Non- Real Estate | Weighted Average | Valuation, Market Approach | Market Data Comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.029 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Non- Real Estate | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 62 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Non- Real Estate | Significant Unobservable Inputs (Level 3) | Valuation, Market Approach | Market Data Comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 25 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Real Estate | Valuation Technique Income Approach Income Approach | Capitalization Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.120 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Real Estate | Minimum | Valuation, Market Approach | Market Data Comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.130 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Real Estate | Maximum | Valuation, Market Approach | Market Data Comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | (0.180) | |
Fair Value, Measurements, Nonrecurring | SBA Loans Real Estate | Weighted Average | Valuation, Market Approach | Market Data Comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | (0.001) | |
Fair Value, Measurements, Nonrecurring | SBA Loans Real Estate | Weighted Average | Valuation Technique Income Approach Income Approach | Capitalization Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.120 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Real Estate | Significant Unobservable Inputs (Level 3) | Valuation, Market Approach | Market Data Comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 47 | |
Fair Value, Measurements, Nonrecurring | SBA Loans Real Estate | Significant Unobservable Inputs (Level 3) | Valuation Technique Income Approach Income Approach | Capitalization Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 396 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Financial Assets: | |||
Cash and cash equivalents | $ 188,145 | $ 106,310 | |
Loans held for sale | 104,218 | 26,659 | |
Loans receivable, net | 1,217,597 | 1,109,217 | |
Accrued interest receivable, net | 3,931 | 3,985 | |
Other investments: | |||
Time deposits placed | 96 | 95 | |
Servicing assets | 15,138 | 9,106 | $ 8,800 |
Financial Liabilities: | |||
Deposit | 1,497,270 | 1,200,789 | |
FHLB Advances | 5,000 | ||
Accrued interest payable | 575 | 1,021 | |
Carrying Amount | |||
Financial Assets: | |||
Cash and cash equivalents | 188,145 | 106,310 | |
Loans held for sale | 94,466 | 26,659 | |
Loans receivable, net | 1,217,687 | 1,084,384 | |
Accrued interest receivable, net | 3,931 | 3,985 | |
Other investments: | |||
FHLB and PCBB stock | 7,195 | 6,233 | |
Time deposits placed | 96 | 95 | |
Servicing assets | 12,389 | 7,360 | |
Financial Liabilities: | |||
Deposit | 1,496,406 | 1,200,090 | |
FHLB Advances | 5,000 | ||
Accrued interest payable | 575 | 1,021 | |
Level 1 | |||
Financial Assets: | |||
Cash and cash equivalents | 188,145 | 106,310 | |
Loans held for sale | 0 | 0 | |
Loans receivable, net | 0 | 0 | |
Accrued interest receivable, net | 5 | 7 | |
Other investments: | |||
Time deposits placed | 0 | 0 | |
Servicing assets | 0 | 0 | |
Financial Liabilities: | |||
Deposit | 0 | 0 | |
FHLB Advances | 0 | ||
Accrued interest payable | 0 | 0 | |
Level 2 | |||
Financial Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Loans held for sale | 104,218 | 26,659 | |
Loans receivable, net | 0 | 0 | |
Accrued interest receivable, net | 267 | 249 | |
Other investments: | |||
Time deposits placed | 96 | 95 | |
Servicing assets | 0 | 0 | |
Financial Liabilities: | |||
Deposit | 1,497,270 | 1,200,789 | |
FHLB Advances | 5,000 | ||
Accrued interest payable | 575 | 1,021 | |
Level 3 | |||
Financial Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans receivable, net | 1,217,597 | 1,109,217 | |
Accrued interest receivable, net | 3,659 | 3,729 | |
Other investments: | |||
Time deposits placed | 0 | 0 | |
Servicing assets | 15,138 | 9,106 | |
Financial Liabilities: | |||
Deposit | 0 | 0 | |
FHLB Advances | 0 | ||
Accrued interest payable | $ 0 | $ 0 |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) | Sep. 30, 2021 |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Capital conservation buffer | 2.50% |
Regulatory Capital Matters - Su
Regulatory Capital Matters - Summary of Actual and Required Capital Amounts and Ratios (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) | $ 172,873 | $ 155,287 |
Tier 1 capital (to risk-weighted assets) | 158,126 | 142,147 |
Common equity Tier 1 capital (to risk-weighted assets) | 158,126 | 142,147 |
Tier 1 leverage (to average assets) | $ 158,126 | $ 142,147 |
Total capital (to risk-weighted assets), ratio | 0.1381 | 0.1481 |
Tier 1 capital (to risk-weighted assets), ratio | 0.1263 | 0.1356 |
Common equity Tier 1 capital (to risk-weighted assets), ratio | 0.1263 | 0.1356 |
Tier 1 leverage (to average assets), ratio | 0.0975 | 0.1055 |
Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) | $ 170,171 | $ 152,232 |
Tier 1 capital (to risk-weighted assets) | 155,424 | 139,092 |
Common equity Tier 1 capital (to risk-weighted assets) | 155,424 | 139,092 |
Tier 1 leverage (to average assets) | $ 155,424 | $ 139,092 |
Total capital (to risk-weighted assets), ratio | 0.1360 | 0.1452 |
Tier 1 capital (to risk-weighted assets), ratio | 0.1242 | 0.1327 |
Common equity Tier 1 capital (to risk-weighted assets), ratio | 0.1242 | 0.1327 |
Tier 1 leverage (to average assets), ratio | 0.0958 | 0.1032 |
Total capital (to risk-weighted assets), amount, Required for Capital Adequacy Purposes | $ 100,135 | $ 83,859 |
Tier 1 capital (to risk-weighted assets), amount, Required for Capital Adequacy Purposes | 75,101 | 62,894 |
Common equity Tier 1 capital (to risk-weighted assets), amount, Required for Capital Adequacy Purposes | 56,326 | 47,171 |
Tier 1 leverage (to average assets), amount, Required for Capital Adequacy Purposes | $ 64,875 | $ 53,915 |
Total capital (to risk-weighted assets), ratio, Required for Capital Adequacy Purposes | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets), ratio, Required for Capital Adequacy Purposes | 0.0600 | 0.0600 |
Common equity Tier 1 capital (to risk-weighted assets), ratio, Required for Capital Adequacy Purposes | 0.0450 | 0.0450 |
Tier 1 leverage (to average assets), ratio, Required for Capital Adequacy Purposes | 0.0400 | 0.0400 |
Capital required to be well capitalized | $ 125,169 | $ 104,824 |
Tier 1 capital (to risk-weighted assets), amount, Minimum To be Considered "Well Capitalized" | 100,135 | 83,859 |
Common equity Tier 1 capital (to risk-weighted assets), amount, Minimum To be Considered "Well Capitalized" | 81,360 | 68,136 |
Tier 1 leverage (to average assets), amount, Minimum To be Considered "Well Capitalized" | $ 81,094 | $ 67,393 |
Total capital (to risk-weighted assets), ratio, Minimum To be Considered "Well Capitalized" | 0.1000 | 0.001000 |
Tier 1 capital (to risk-weighted assets), ratio, Minimum To be Considered "Well Capitalized" | 0.0800 | 0.000800 |
Common equity Tier 1 capital (to risk-weighted assets), ratio, Minimum To be Considered "Well Capitalized" | 0.0650 | 0.0650 |
Tier 1 leverage (to average assets), ratio, Minimum To be Considered "Well Capitalized" | 0.0500 | 0.000500 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic | ||||
Net income | $ 8,250 | $ 3,595 | $ 19,706 | $ 9,310 |
Undistributed earnings allocated to participating securities | (109) | (44) | (216) | (154) |
Net income allocated to common shares | $ 8,141 | $ 3,551 | $ 19,490 | $ 9,156 |
Weighted average common shares outstanding (shares) | 15,133,407 | 15,148,833 | 15,071,327 | 15,235,617 |
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.23 | $ 1.29 | $ 0.60 |
Diluted | ||||
Net income allocated to common shares | $ 8,141 | $ 3,551 | $ 19,490 | $ 9,156 |
Weighted average common shares outstanding for basic earnings per common share (shares) | 15,133,407 | 15,148,833 | 15,071,327 | 15,235,617 |
Add: Dilutive effects of assumed exercises of stock options | 67,206 | 33,900 | 62,246 | 48,573 |
Average shares and dilutive potential common shares (shares) | 15,200,613 | 15,182,733 | 15,133,573 | 15,284,190 |
Diluted earnings per common share (in dollars per share) | $ 0.54 | $ 0.23 | $ 1.29 | $ 0.60 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares of common stock excluded from computation of earnings per share (shares) | 0 | 262,000 | 0 | 212,000 |