Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SIERRA BANCORP | ||
Entity Central Index Key | 0001130144 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 395 | ||
Trading Symbol | BSRR | ||
Entity Common Stock, Shares Outstanding | 15,321,630 | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 72,439 | $ 61,142 |
Interest-bearing deposits in banks | 1,693 | 8,995 |
Cash and cash equivalents | 74,132 | 70,137 |
Securities available-for-sale | 560,479 | 558,329 |
Loans and leases: | ||
Gross loans and leases | 1,731,928 | 1,557,820 |
Allowance for loan and lease losses | (9,750) | (9,043) |
Deferred loan and lease costs, net | 2,602 | 2,774 |
Net loans and leases | 1,724,780 | 1,551,551 |
Foreclosed assets | 1,082 | 5,481 |
Premises and equipment, net | 29,500 | 29,388 |
Goodwill | 27,357 | 27,357 |
Other intangible assets, net | 6,455 | 6,234 |
Company owned life insurance | 48,153 | 47,108 |
Other assets | 50,564 | 44,713 |
Total assets | 2,522,502 | 2,340,298 |
Deposits: | ||
Non-interest bearing | 662,527 | 635,434 |
Interest bearing | 1,453,813 | 1,352,952 |
Total deposits | 2,116,340 | 1,988,386 |
Repurchase agreements | 16,359 | 8,150 |
Short-term borrowings | 56,100 | 21,900 |
Subordinated debentures, net | 34,767 | 34,588 |
Other liabilities | 25,912 | 31,332 |
Total liabilities | 2,249,478 | 2,084,356 |
Commitments and contingent liabilities (Notes 5 & 12) | ||
Shareholders' equity | ||
Serial Preferred stock, no par value; 10,000,000 shares authorized; none issued; | ||
Common stock, no par value; 24,000,000 shares authorized; 15,300,460 and 15,223,360 shares issued and outstanding in 2018 and 2017, respectively | 112,507 | 111,138 |
Additional paid-in capital | 3,066 | 2,937 |
Retained earnings | 164,117 | 144,197 |
Accumulated other comprehensive loss, net of taxes of $(2,798) in 2018 and $(977) in 2017 | (6,666) | (2,330) |
Total shareholders' equity | 273,024 | 255,942 |
Total liabilities and shareholder's equity | $ 2,522,502 | $ 2,340,298 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 24,000,000 | 24,000,000 |
Common Stock, Shares, Issued | 15,300,460 | 15,223,360 |
Common Stock, Shares, Outstanding | 15,300,460 | 15,223,360 |
Accumulated Other Comprehensive Loss Tax | $ (2,798) | $ (977) |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Interest and dividend income | |||||
Loans and leases, including fees | $ 87,792 | $ 68,227 | $ 57,450 | ||
Taxable securities | 9,548 | 8,614 | 7,922 | ||
Tax-exempt securities | 4,060 | 3,711 | 3,009 | ||
Dividend income on securities | 0 | 16 | 40 | ||
Federal funds sold and other | 238 | 356 | 84 | ||
Total interest income | 101,638 | 80,924 | 68,505 | ||
Interest expense | |||||
Deposits | 7,260 | 3,762 | 2,174 | ||
Short-term borrowings | 253 | 93 | 166 | ||
Subordinated debentures | 1,731 | 1,368 | 983 | ||
Total interest expense | 9,244 | 5,223 | 3,323 | ||
Net interest income | 92,394 | 75,701 | 65,182 | ||
Provision (benefit) for loan and lease losses | 4,350 | (1,140) | 0 | ||
Net interest income after provision for loan and lease losses | 88,044 | 76,841 | 65,182 | ||
Non-interest income | |||||
Service charges on deposits | 12,439 | 11,230 | 10,151 | ||
Gain on sale of loans | 0 | 3 | 2 | ||
Checkcard fees | 5,878 | 4,955 | 4,467 | ||
Net gains on sale of securities available-for-sale | 2 | [1] | 500 | [1] | 223 |
Increase in cash surrender value of life insurance | 591 | 1,640 | 994 | ||
Other income | 2,654 | 3,451 | 3,401 | ||
Total non-interest income | 21,564 | 21,779 | 19,238 | ||
Non-interest expense | |||||
Salaries and employee benefits | 36,133 | 31,506 | 27,452 | ||
Occupancy and equipment | 10,295 | 9,590 | 7,766 | ||
Acquisition costs | 449 | 2,225 | 2,411 | ||
Other | 23,147 | 22,120 | 20,424 | ||
Total non-interest expense | 70,024 | 65,441 | 58,053 | ||
Income before income taxes | 39,584 | 33,179 | 26,367 | ||
Provision for income taxes | 9,907 | 13,640 | 8,800 | ||
Net income | $ 29,677 | $ 19,539 | $ 17,567 | ||
Earnings per share | |||||
Basic | $ 1.94 | $ 1.38 | $ 1.30 | ||
Diluted | $ 1.92 | $ 1.36 | $ 1.29 | ||
Weighted average shares outstanding, basic | 15,261,794 | 14,172,196 | 13,530,293 | ||
Weighted average shares outstanding, diluted | 15,432,120 | 14,357,782 | 13,651,804 | ||
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 29,677 | $ 19,539 | $ 17,567 | |
Unrealized (loss) gain on securities: | ||||
Unrealized holding (loss) gain arising during period | (6,154) | 231 | (7,245) | |
Reclassification adjustment for gain included in net income | [1] | (2) | (500) | (223) |
Other comprehensive loss, before tax | (6,156) | (269) | (7,468) | |
Income tax benefit related to items of other comprehensive income | 1,820 | 112 | 3,162 | |
Total other comprehensive loss, net of tax | (4,336) | (157) | (4,306) | |
Comprehensive income | $ 25,341 | $ 19,382 | $ 13,261 | |
[1] | Amounts are included in net gains on securities available-for-sale on the Consolidated Statements of Income in non-interest income. Income tax expense associated with the reclassification adjustment for the years ended 2018, 2017 and 2016 was $0, $210,000 and $94,000 respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Reclassification adjustment for gain on securities available-for-sale included in net income, tax | $ 0 | $ 210,000 | $ 94,000 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (loss) [Member] |
Balance at Dec. 31, 2015 | $ 190,340 | $ 62,404 | $ 2,689 | $ 122,701 | $ 2,546 |
Balance (in shares) at Dec. 31, 2015 | 13,254,088,000 | ||||
Net income | 17,567 | 17,567 | |||
Other comprehensive loss, net of tax | (4,306) | (4,306) | |||
Exercise of stock options and related tax benefits | 649 | $ 694 | (45) | ||
Exercise of stock options and related tax benefits (in shares) | 48,640,000 | ||||
Stock compensation costs | 188 | 188 | |||
Stock repurchase | (2,259) | $ (677) | (1,582) | ||
Stock repurchase (in shares) | (125,365,000) | ||||
Stock issued-acquisition | 10,205 | $ 10,205 | |||
Stock issued-acquisition (in shares) | 599,226,000 | ||||
Cash dividends | (6,506) | (6,506) | |||
Balance at Dec. 31, 2016 | 205,878 | $ 72,626 | 2,832 | 132,180 | (1,760) |
Balance (in shares) at Dec. 31, 2016 | 13,776,589,000 | ||||
Net income | 19,539 | 19,539 | |||
Other comprehensive loss, net of tax | (157) | (157) | |||
Tax act reclassification | 413 | (413) | |||
Exercise of stock options and related tax benefits | 764 | $ 1,141 | (377) | ||
Exercise of stock options and related tax benefits (in shares) | 70,340,000 | ||||
Stock compensation costs | 476 | 476 | |||
Stock issued-acquisition | 37,377 | $ 37,371 | 6 | ||
Stock issued-acquisition (in shares) | 1,376,431,000 | ||||
Cash dividends | (7,935) | (7,935) | |||
Balance at Dec. 31, 2017 | 255,942 | $ 111,138 | 2,937 | 144,197 | (2,330) |
Balance (in shares) at Dec. 31, 2017 | 15,223,360,000 | ||||
Net income | 29,677 | 29,677 | |||
Other comprehensive loss, net of tax | (4,336) | (4,336) | |||
Exercise of stock options and related tax benefits | 1,131 | $ 1,369 | (238) | ||
Exercise of stock options and related tax benefits (in shares) | 77,100,000 | ||||
Stock compensation costs | 373 | 373 | |||
Stock issued-acquisition | (6) | (6) | |||
Cash dividends | (9,757) | (9,757) | |||
Balance at Dec. 31, 2018 | $ 273,024 | $ 112,507 | $ 3,066 | $ 164,117 | $ (6,666) |
Balance (in shares) at Dec. 31, 2018 | 15,300,460,000 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.64 | $ 0.56 | $ 0.48 |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 146 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 29,677,000 | $ 19,539,000 | $ 17,567,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sales of securities | (2,000) | (500,000) | (223,000) |
Gain on sale of loans | 0 | (3,000) | (2,000) |
Loss on disposal of fixed assets | 16,000 | 136,000 | 2,000 |
Gain on sale of foreclosed assets | (1,423,000) | (56,000) | (130,000) |
Writedown of foreclosed assets | 439,000 | 95,000 | 450,000 |
Share-based compensation expense | 373,000 | 476,000 | 188,000 |
Provision (benefit) for loan losses | 4,350,000 | (1,140,000) | 0 |
Depreciation and amortization | 3,174,000 | 3,030,000 | 2,584,000 |
Net amortization on securities premiums and discounts | 5,452,000 | 6,749,000 | 7,130,000 |
Accretion of discounts for loans acquired and net deferred loan fees | (1,647,000) | (1,384,000) | (1,030,000) |
Increase in cash surrender value of life insurance policies | (591,000) | (1,640,000) | (945,000) |
Amortization of core deposit intangible | 1,020,000 | 508,000 | 272,000 |
Decrease (increase) in interest receivable and other assets | (6,106,000) | 10,402,000 | (3,442,000) |
(Decrease) increase in other liabilities | (5,420,000) | 4,100,000 | (621,000) |
Deferred income tax benefit | (308,000) | (1,130,000) | (6,113,000) |
Deferred tax benefit from equity based compensation | 0 | 0 | (106,000) |
Increase in equity securities | (1,183,000) | 0 | 0 |
Net amortization of partnership investment | 2,625,000 | 1,497,000 | 0 |
Net cash provided by operating activities | 30,446,000 | 40,679,000 | 15,581,000 |
Cash flows from investing activities: | |||
Maturities of securities available for sale | 4,285,000 | 2,065,000 | 1,310,000 |
Proceeds from sales/calls of securities available for sale | 12,283,000 | 47,594,000 | 39,568,000 |
Purchases of securities available for sale | (122,818,000) | (179,092,000) | (138,675,000) |
Principal paydowns on securities available for sale | 92,494,000 | 100,161,000 | 99,181,000 |
Net purchases of FHLB stock | (300,000) | (1,689,000) | (960,000) |
Loan originations and payments, net | (183,737,000) | (76,129,000) | (36,761,000) |
Purchases of premises and equipment, net | (3,123,000) | (2,141,000) | (3,586,000) |
Proceeds from sales of foreclosed assets | 13,188,000 | 443,000 | 1,551,000 |
Purchase of bank owned life insurance | (454,000) | (455,000) | (360,000) |
Proceeds from BOLI death benefit | 0 | 999,000 | 1,739,000 |
Net increase in partnership investment | 0 | (5,000,000) | 0 |
Net cash from bank acquisition | (6,000) | 61,571,000 | 15,653,000 |
Net cash used in investing activities | (188,188,000) | (51,673,000) | (21,340,000) |
Cash flows from financing activities: | |||
Increase in deposits | 127,954,000 | 35,304,000 | 101,805,000 |
Increase (decrease) in borrowed funds | 34,200,000 | (67,500,000) | (14,800,000) |
Increase (decrease) in repurchase agreements | 8,209,000 | 56,000 | (1,311,000) |
Cash dividends paid | (9,757,000) | (7,935,000) | (6,506,000) |
Repurchases of common stock | 0 | 0 | (2,259,000) |
Stock options exercised | 1,131,000 | 764,000 | 543,000 |
Excess tax provision from equity based compensation | 0 | 0 | 106,000 |
Net cash provided by (used in) financing activities | 161,737,000 | (39,311,000) | 77,578,000 |
(Decrease) increase in cash and due from banks | 3,995,000 | (50,305,000) | 71,819,000 |
Cash and cash equivalents, beginning of year | 70,137,000 | 120,442,000 | 48,623,000 |
Cash and cash equivalents, end of year | 74,132,000 | 70,137,000 | 120,442,000 |
Cash paid during the year for: | |||
Interest | 8,707,000 | 5,000,000 | 3,396,000 |
Income taxes | 11,300,000 | 7,147,000 | 4,930,000 |
Non-cash investing activities | |||
Real estate acquired through foreclosure | 7,805,000 | 666,000 | 902,000 |
Change in unrealized net losses on securities available-for-sale | (6,156,000) | (269,000) | (7,468,000) |
Assets acquired (liabilities assumed) in bank acquisition: | |||
Cash and cash equivalents | 0 | 62,374,000 | 18,931,000 |
Securities | 0 | 5,492,000 | 23,363,000 |
Federal Home Loan Bank and Federal Reserve Bank stock | 0 | 0 | 1,057,000 |
Loans | 0 | 217,807,000 | 94,264,000 |
Premises and equipment | 0 | 1,342,000 | 5,844,000 |
Foreclosed assets | 0 | 3,072,000 | 0 |
Core deposit intangibles | 0 | 3,939,000 | 1,827,000 |
Goodwill | 0 | 19,089,000 | 1,360,000 |
Other assets | 0 | 10,479,000 | 2,504,000 |
Deposits | 0 | (257,611,000) | (129,038,000) |
Other liabilities | 0 | (3,404,000) | (705,000) |
Borrowings | 0 | (24,400,000) | (2,500,000) |
Subordinated debentures | $ 0 | $ 0 | $ (3,422,000) |
The Business of Sierra Bancorp
The Business of Sierra Bancorp | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Business of Sierra Bancorp | 1. THE BUSINESS OF SIERRA BANCORP Sierra Bancorp (the “Company”) is a California corporation registered as a bank holding company under the Bank Holding Company Act of 1956, as amended, and is headquartered in Porterville, California. The Company was incorporated in November 2000 and acquired all of the outstanding shares of Bank of the Sierra (the “Bank”) in August 2001. The Company’s principal subsidiary is the Bank, and the Company exists primarily for the purpose of holding the stock of the Bank and of such other subsidiaries it may acquire or establish. The Company’s only other direct subsidiaries are Sierra Statutory Trust II, Sierra Capital Trust III and Coast Bancorp Statutory Trust II, which were formed solely to facilitate the issuance of capital trust pass-through securities. At December 31, 2018, the Bank operated 40 full service branch offices, an online branch, an agricultural credit division, and an SBA lending unit. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable legal limits. The Bank maintains a diversified loan portfolio comprised of agricultural, commercial, consumer, real estate construction and mortgage loans. Loans are made in California within the market area of the South Central San Joaquin Valley, the Central Coast, Ventura County and neighboring communities. These areas have diverse economies with principal industries being agriculture, real estate and light manufacturing |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly-owned subsidiary, Bank of the Sierra. All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years' balances to conform to classifications used in 2018. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and prevailing practices within the banking industry. In accordance with U.S. GAAP, the Company’s investments in Sierra Statutory Trust II, Sierra Capital Trust III and Coast Bancorp Statutory Trust II are not consolidated and are accounted for under the equity method and included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the trusts are reflected on the Company’s consolidated balance sheet. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make 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. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan and lease losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and lease losses and other real estate, management obtains independent appraisals for significant properties, evaluates the overall loan portfolio characteristics and delinquencies and monitors economic conditions. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and deposits with other financial institutions that mature within 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and fed funds purchased and repurchase agreements. Securities Debt securities may be classified as held to maturity and carried at amortized cost when management has the positive ability and intent to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Debt securities available for sale are carried at fair value with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities are carried at fair value with changes in fair value included in net income. Interest income includes amortization of purchase premium or discount. Premiums or discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of the impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. FHLB Stock and Other Investments The Bank is a member of the Federal Home Loan Bank ("FHLB") system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost in other assets, and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank's investment in FHLB stock was approximately $9,894,000 and $9,594,000 at December 31, 2018 and 2017, respectively. Loans Held for Sale The Company may originate loans intended to be sold on the secondary market. Loans originated and intended for sale in the secondary market are carried at cost which approximates fair value since these loans are typically sold shortly after origination. The loan’s cost basis includes unearned deferred fees and costs, and premiums and discounts. If loans held for sale remain on our books for an extended period of time the fair value of those loans is determined using quoted secondary market prices. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans that might be held for sale by the Company typically consist of residential real estate loans. Loans classified as held for sale, if any, are disclosed in Note 4 to the consolidated financial statements. Gains and losses on sales of loans are recognized at the time of sale and are calculated based on the difference between the selling price and the allocated book value of loans sold. Book value allocations are determined in accordance with U.S. GAAP. Any inherent risk of loss on loans sold is transferred to the buyer at the date of sale. The Company has issued various representations and warranties associated with the sale of loans. These representations and warranties may require the Company to repurchase loans with underwriting deficiencies as defined per the applicable sales agreements and certain past due loans within 90 days of the sale. The Company did not experience losses during the years ended December 31, 2018, 2017, or 2016 regarding these representations and warranties. Loans and Leases (Financing Receivables) Our credit quality classifications of Loans and Leases include Pass, Special Mention, Substandard and Impaired. These classifications are defined in Note 4 to the consolidated financial statements. Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, purchase premiums and discounts, write-downs, and an allowance for loan and lease losses. Loan and lease origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized in interest income as an adjustment to yield of the related loans and leases over the contractual life of the loan using both the effective interest and straight line methods without anticipating prepayments. Interest income for all performing loans, regardless of classification (Pass, Special Mention, Substandard and Impaired), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan’s status changed. For loans with an interest reserve, i.e., where loan proceeds are advanced to the borrower to make interest payments, all interest recognized from the inception of the loan is reversed when the loan is placed on non-accrual. Once a loan is on non-accrual status subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Generally, loans and leases are not restored to accrual status until the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Impaired loans are classified as either nonaccrual or accrual, depending on individual circumstances regarding the collectability of interest and principal according to the contractual terms. Purchased Credit Impaired Loans The Company purchases individual loans and groups of loans, some of which may show evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, since there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics. The Company estimates the amount and timing of expected cash flows for the loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan and lease losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income Loans Modified in a Troubled Debt Restructuring Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when due to a borrower’s financial difficulties the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. A TDR is generally considered to be in default when it appears likely that the customer will not be able to repay all principal and interest pursuant to the terms of the restructured agreement. Allowance for Loan and Lease Losses The allowance for loan and lease losses is maintained at a level which, in management’s judgment, is adequate to absorb loan and lease losses inherent in the loan and lease portfolio. The allowance for loan and lease losses is increased by a provision for loan and lease losses, which is charged to expense, and by principal recovered on charged-off balances. It is reduced by principal charge-offs. The amount of the allowance is based on management’s evaluation of the collectability of the loan and lease portfolio, changes in its risk profile, credit concentrations, historical trends, and economic conditions. This evaluation also considers the balance of impaired loans and leases. A loan or lease is impaired when it is probable that the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan or lease agreement. The impairment on certain individually identified loans or leases is measured based on the present value of expected future cash flows discounted at the original effective interest rate of the loan or lease. As a practical expedient, impairment may be measured based on the loan’s or lease’s observable market price or the fair value of collateral if the loan or lease is collateral dependent. The amount of impairment, if any, is recorded through the provision for loan and lease losses and is added to the allowance for loan and lease losses, with any changes over time recognized as additional bad debt expense in our provision for loan losses. Impaired loans with homogenous characteristics, such as one-to-four family residential mortgages and consumer installment loans, may be subjected to a collective evaluation for impairment, considering delinquency and repossession statistics, historical loss experience, and other factors. General reserves cover non-impaired loans and are based on historical net loss rates for each portfolio segment by call report code, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments; changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in quality of the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit; and the effect of the other external factors such as competition and legal and regulatory requirements. Most of the Company’s business activity is with customers located in California within the Southern Central San Joaquin Valley; in the corridor stretching between Santa Paula and Santa Clarita in Southern California, and on the Central Coast. Therefore the Company’s exposure to credit risk is significantly affected by changes in the economy in those regions. The Company considers this concentration of credit risk when assessing and assigning qualitative factors in the allowance for loan losses. Portfolio segments identified by the Company include Agricultural, Commercial and Industrial, Real Estate, Small Business Administration, and Consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans; and credit scores, debt-to-income ratios, collateral type and loan-to-value ratios for consumer loans. Though management believes the allowance for loan and lease losses to be adequate, ultimate losses may vary from their estimates. However, estimates are reviewed periodically, and as adjustments become necessary they are reported in earnings during the periods they become known. In addition, the FDIC and the California Department of Business Oversight, as an integral part of their examination processes, review the allowance for loan and lease losses. These agencies may require additions to the allowance for loan and lease losses based on their judgment about information available at the time of their examinations. Reserve for Off-Balance Sheet Commitments In addition to the exposure to credit loss from outstanding loans, the Company is also exposed to credit loss from certain off-balance sheet commitments such as unused commitments from revolving lines of credit, mortgage warehouse lines of credit, construction loans and commercial and standby letters of credit. Because the available funds have not yet been disbursed on these commitments the estimated losses are not included in the calculation of the ALLL. The reserve for off-balance sheet commitments is an estimated loss contingency which is included in other liabilities on the Consolidated Balance Sheets. The adjustments to the reserve for off-balance sheet commitments are reported as a noninterest expense. This reserve is for estimated losses that could occur when the Company is contractually obligated to make a payment under these instruments and must seek repayment from a party that may not be as financially sound in the current period as it was when the commitment was originally made. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of premises range between twenty-five to thirty-nine years. The useful lives of furniture, fixtures and equipment range between three to twenty years. Leasehold improvements are amortized over the life of the asset or the term of the related lease, whichever is shorter. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. Foreclosed Assets Foreclosed assets include real estate and other property acquired in full or partial settlement of loan obligations. Upon acquisition, any excess of the recorded investment in the loan balance over the appraised fair market value, net of estimated selling costs, is charged against the allowance for loan and lease losses. A valuation allowance for losses on foreclosed assets is maintained to provide for declines in value. The allowance is established through a provision for losses on foreclosed assets which is included in other non-interest expense. Subsequent gains or losses on sales or write-downs resulting from permanent impairments are recorded in other non-interest expense as incurred. Operating costs after acquisition are expensed. The Company had two foreclosed residential real estate properties recorded at December 31, 2018, as a result of obtaining physical possession of the property. At December 31, 2018, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process was $111,000. Goodwill and Other Intangible Assets The Company acquired Sierra National Bank in 2000, Santa Clara Valley Bank in 2014, Coast National Bank in 2016, and Ojai Community Bank and the Woodlake Branch of Citizen’s Business Bank in 2017. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are tested for impairment at least annually or more frequently if events and circumstances exist which indicate that an impairment test should be performed. The Company selected December 31, 2018 as the date to perform the annual impairment test for 2018. Goodwill is the only intangible asset with an indefinite life on our balance sheet. There was no impairment recognized for the years ended December 31, 2018, 2017, and 2016. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The Company’s other intangible assets consist solely of core deposit intangible assets (CDI’s) arising from the acquisitions of Santa Clara Valley Bank, Coast National Bank, a Citizen’s Business Bank Porterville branch deposit portfolio, Ojai Community Bank, the Woodlake Branch of Citizen’s Business Bank and the Lompoc branch of Santa Maria Community Bank. All of the CDI’s are being amortized on a straight line basis over eight years, except for the Citizen’s Business Bank Porterville branch deposit portfolio which is being amortized on a straightline basis over five years. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Details regarding these commitments and financial instruments are discussed in detail in Note 12 to the consolidated financial statements. Income Taxes The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have determined that as of December 31, 2018 all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the financial statements. The Company recognizes interest and penalties related to uncertain tax positions as part of income tax expense. Salary Continuation Agreements and Directors’ Retirement Plan The Company has entered into agreements to provide members of the Board of Directors and certain key executives, or their designated beneficiaries, with annual benefits for up to fifteen years after retirement or death. The Company accrues for these future benefits from the effective date of the plan until the director’s or executive’s expected retirement date in a systematic and rational manner. At the consolidated balance sheet date, the amount of accrued benefits equals the then present value of the benefits expected to be provided to the director or employee, any beneficiaries, and covered dependents in exchange for the director’s or employee’s services to that date. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of an adjustment for the effects of realized gains and losses and any applicable tax. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company’s available for sale securities are included in other comprehensive income after adjusting for the effects of realized gains and losses. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. Stock-Based Compensation At December 31, 2018, the Company had one stock-based compensation plan, the Sierra Bancorp 2017 Stock Incentive Plan (the “2017 Plan”), which was adopted by the Company’s Board of Directors on March 16, 2017 and approved by the Company’s shareholders on May 24, 2017. The 2017 Plan replaced the Company’s 2007 Stock Incentive Plan (the “2007” Plan), which expired by its own terms on March 15, 2017. Options to purchase shares granted under the 2007 Plan that remained outstanding were unaffected by that plan’s termination. The 2017 Plan covers 850,000 shares of the Company’s authorized but unissued common stock, subject to adjustment for stock splits and dividends, and provides for the issuance of both “incentive” and “nonqualified” stock options to salaried officers and employees, and of “nonqualified” stock options to non-employee directors. The 2017 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants. We have not issued, nor do we currently have plans to issue, restricted stock awards. Compensation cost and director’s expense is recognized for stock options issued to employees and directors and is recognized over the required service period, generally defined as the vesting period. The Company is using the Black-Scholes model to value stock options. The “multiple option” approach is used to allocate the resulting valuation to actual expense for current period. Expected volatility is based on historical volatility of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding subsequent to vesting, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of each option is estimated on the date of grant using the following assumptions: Years Ended December 31, 2018 2017 2016 Dividend yield 2.12 % 1.70 % 2.55 % Expected Volatility 26.26 % 26.47 % 24.62 % Risk-free interest rate 2.38 % 1.92 % 1.14 % Expected option life 5.3 years 5.0 years 5.0 years Recent Accounting Pronouncements In May 2014 the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is the result of a joint project initiated by the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue, and to develop common revenue standards and disclosure requirements that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosures; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required with regard to contracts with customers, as well as for significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The guidance does not apply to revenue associated with financial instruments such as loans and investments, which is accounted for under other provisions of GAAP. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods therein, and the Company thus adopted ASU 2014-09 on January 1, 2018 utilizing the modified retrospective approach. The Company’s primary source of revenue is derived from income on financial instruments, which is not impacted by the guidance in ASU 2014-09. Furthermore, the Company evaluated the nature of its non-interest income, and determined that for income associated with customer contracts transaction prices are typically fixed and performance obligations are satisfied as services are rendered. Therefore, there is little or no judgment involved in the timing of revenue recognition under contracts within the scope of ASU 2014-09, and there was no impact on our financial statements upon the adoption of ASU 2014-09. Please see Note 23 to the consolidated financial statements for more detailed disclosure information. In January 2016 the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities Fair Value In February 25, 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842). The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. This Update is generally effective for public business entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has several lease agreements, including 21 branch locations, one administrative office and three offsite ATM locations which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. Effective January 1, 2019 the Company adopted ASU 2016-02 recording a right of use asset and a corresponding lease liability for $10,300,000. On March 30, 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , as part of its simplification initiative. ASU 2016-09 became effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting |
Securities Available-for-Sale
Securities Available-for-Sale | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Securities Available-for-Sale | 3. SECURITIES AVAILABLE-FOR-SALE The amortized cost and fair value of the securities available-for-sale are as follows (dollars in thousands): December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agencies $ 15,553 $ 12 $ (353 ) $ 15,212 Mortgage-backed securities 414,208 398 (9,873 ) 404,733 State and political subdivisions 140,181 1,206 (853 ) 140,534 Total securities $ 569,942 $ 1,616 $ (11,079 ) $ 560,479 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agencies $ 21,524 $ 70 $ (268 ) $ 21,326 Mortgage-backed securities 399,203 816 (6,217 ) 393,802 State and political subdivisions 140,909 2,673 (381 ) 143,201 Total securities $ 561,636 $ 3,559 $ (6,866 ) $ 558,329 For the years ended December 31, 2018, 2017, and 2016, proceeds from sales of securities available-for-sale were $6.8 million, $45.7 million, and $21.5 million, respectively. Gains and losses on the sale of investment securities are recorded on the trade date and are determined using the specific identification method. Gross gains and losses from the sales and calls of securities for the years ended were as follows (dollars in thousands): December 31, 2018 2017 2016 Gross gains on sales and calls of securities $ 21 $ 1,024 $ 261 Gross losses on sales and calls of securities (19 ) (524 ) (38 ) Net gains on sales and calls of securities $ 2 $ 500 $ 223 The Company has reviewed all sectors and securities in the portfolio for impairment. During the year ended December 31, 2018 the Company realized gains through earnings from the sale and call of 11 debt securities for $21,000. The securities were sold with 8 other debt securities, for which a $19,000 loss was realized, to improve the structure of the portfolio at year end. During the year ended December 31, 2017, the Company realized gains through earnings from the sale and call of 25 debt securities for $106,000 and one equity position for $918,000. The securities were sold with 59 other debt securities, for which a $524,000 loss was realized, to raise liquidity at year-end. At December 31, 2018 and 2017, the Company had 552 and 396 securities with unrealized gross losses, respectively. Information pertaining to these securities aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands): December 31, 2018 Less than twelve months Twelve months or longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value U.S. government agencies $ (54 ) $ 2,815 $ (299 ) $ 10,764 Mortgage-backed securities (717 ) 69,686 (9,156 ) 273,230 State and political subdivisions (249 ) 33,864 (604 ) 22,213 Total $ (1,020 ) $ 106,365 $ (10,059 ) $ 306,207 December 31, 2017 Less than twelve months Twelve months or longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value U.S. government agencies $ (79 ) $ 8,154 $ (189 ) $ 7,100 Mortgage-backed securities (2,420 ) 188,885 (3,797 ) 158,344 State and political subdivisions (89 ) 16,218 (292 ) 11,562 Total $ (2,588 ) $ 213,257 $ (4,278 ) $ 177,006 The Company has concluded as of December 31, 2018 that all remaining securities, currently in an unrealized loss position, are not other-than-temporarily-impaired. The amortized cost and estimated fair value of securities available-for-sale at December 31, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without penalties (dollars in thousands): Amortized Cost Fair Value Maturing within one year $ 7,726 $ 7,789 Maturing after one year through five years 199,840 195,519 Maturing after five years through ten years 47,802 47,661 Maturing after ten years 83,606 83,444 Securities not due at a single maturity date: U.S. government agencies collateralized by mortgage obligations 230,968 226,066 $ 569,942 $ 560,479 Securities available-for-sale with amortized costs totaling $222,548,000 and estimated fair values totaling $217,421,000 were pledged to secure other contractual obligations and short-term borrowing arrangements at December 31, 2018 (see Note 9). Securities available-for-sale with amortized costs totaling $183,941,000 and estimated fair values totaling $182,717,000 were pledged to secure other contractual obligations and short-term borrowing arrangements at December 31, 2017 (see Note 9). At December 31, 2018, the Company’s investment portfolio included securities issued by 255 different government municipalities and agencies located within 29 states with a fair value of $140,533,000. The largest exposure to any single municipality or agency was $2.5 million (fair value) in six bonds issued for the renovation, modernization and construction of various school facilities by the Lindsay Unified School District, to be repaid by future tax revenues. The Company’s investments in bonds issued by states, municipalities and political subdivisions are evaluated in accordance with Supervision and Regulation Letter 12-15 (SR 12-15) issued by the Board of Governors of the Federal Reserve System, “Investing in Securities without Reliance on Nationally Recognized Statistical Rating Organization Ratings”, and other regulatory guidance. Credit ratings are considered in our analysis only as a guide to the historical default rate associated with similarly-rated bonds. There have been no significant differences in our internal analyses compared with the ratings assigned by the third party credit rating agencies. The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations (dollars in thousands): December 31, 2018 December 31, 2017 General obligation bonds Amortized Cost Fair Value Amortized Cost Fair Value State of Issuance: Texas $ 36,331 $ 36,199 $ 32,824 $ 33,184 California 26,928 27,357 27,205 28,027 Washington 16,036 16,062 13,282 13,524 Ohio 8,639 8,601 9,917 9,978 Illinois 6,827 6,838 8,822 8,925 Oregon 4,152 4,115 4,249 4,282 Nevada 3,287 3,345 3,306 3,438 Other (20 and 19 states, respectively) 14,091 14,116 17,036 17,251 Total general obligation bonds 116,291 116,633 116,641 118,609 Revenue bonds State of Issuance: Texas 7,526 7,506 7,088 7,172 Utah 5,364 5,353 5,397 5,454 Indiana 2,641 2,654 2,664 2,721 Washington 1,751 1,780 1,764 1,811 Virginia 1,341 1,315 1,613 1,626 Other (11 and 12 states, respectively) 5,267 5,293 5,742 5,808 Total revenue bonds 23,890 23,901 24,268 24,592 Total obligations of states and political subdivisions $ 140,181 $ 140,534 $ 140,909 $ 143,201 The following table summarizes the amortized cost and fair value of revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the revenue source of repayment for our largest source concentrations (dollars in thousands): December 31, 2018 December 31, 2017 Revenue bonds Amortized Cost Fair Value Amortized Cost Fair Value Revenue Source: Water $ 6,942 $ 6,946 $ 5,160 $ 5,230 College & university 2,583 2,604 3,649 3,715 Sales tax 2,932 2,901 4,375 4,417 Lease 2,053 2,068 3,657 3,706 Electric & power 1,027 1,047 2,076 2,116 Other (12 and 14 sources, respectively) 8,353 8,335 5,351 5,408 Total revenue bonds $ 23,890 $ 23,901 $ 24,268 $ 24,592 |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans and Leases | 4. LOANS AND LEASES The composition of the loan and lease portfolio is as follows (dollars in thousands): December 31, 2018 2017 Real estate: Secured by commercial and professional office properties, including construction and development $ 848,691 $ 701,658 Secured by residential properties 453,698 384,542 Secured by farm land 151,541 140,516 Total real estate loans 1,453,930 1,226,716 Agricultural 49,103 46,796 Commercial and industrial 128,220 135,662 Mortgage warehouse lines 91,813 138,020 Consumer 8,862 10,626 Total loans 1,731,928 1,557,820 Deferred loan and lease origination cost, net 2,602 2,774 Allowance for loan and lease losses (9,750 ) (9,043 ) Loans, net $ 1,724,780 $ 1,551,551 The Company monitors the credit quality of loans on a continuous basis using the regulatory and accounting classifications of pass, special mention, substandard and impaired to characterize and qualify the associated credit risk. Loans classified as “loss” are immediately charged-off. The Company uses the following definitions of risk classifications: Pass – Loans listed as pass include larger non-homogeneous loans not meeting the risk rating definitions below and smaller, homogeneous loans not assessed on an individual basis. Special Mention – Loans classified as special mention have the potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position and some future date. Substandard – Loans classified as substandard are those loans with clear and well-defined weaknesses such as a highly leveraged position, unfavorable financial operating results and/or trends, or uncertain repayment sources or poor financial condition, which may jeopardize ultimate recoverability of the debt. Impaired – A loan is considered impaired, when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as troubled debt restructurings are considered impaired. Credit quality classifications as of December 31, 2018 were as follows (dollars in thousands): Pass Special Mention Substandard Impaired Total Real estate: 1-4 family residential construction $ 105,676 $ — $ — $ — $ 105,676 Other construction/land 108,304 231 — 488 109,023 1-4 family - closed-end 230,022 1,861 1,310 3,632 236,825 Equity lines 49,346 2,194 64 4,716 56,320 Multi-family residential 54,504 — — 373 54,877 Commercial real estate owner occupied 292,886 4,192 3,021 1,225 301,324 Commercial real estate non-owner occupied 429,835 2,730 4,354 1,425 438,344 Farmland 148,680 1,073 146 1,642 151,541 Total real estate 1,419,253 12,281 8,895 13,501 1,453,930 Agricultural 48,517 580 — 6 49,103 Commercial and industrial 110,413 15,686 377 1,744 128,220 Mortgage warehouse lines 91,813 — — — 91,813 Consumer loans 7,851 151 39 821 8,862 Total gross loans and leases $ 1,677,847 $ 28,698 $ 9,311 $ 16,072 $ 1,731,928 Credit quality classifications as of December 31, 2017 were as follows (dollars in thousands): Pass Special Mention Substandard Impaired Total Real estate: 1-4 family residential construction $ 74,256 $ — $ — $ — $ 74,256 Other construction/land 57,421 807 — 551 58,779 1-4 family - closed-end 197,309 1,534 1,204 4,719 204,766 Equity lines 53,825 3,620 521 4,624 62,590 Multi-family residential 42,539 — — 391 42,930 Commercial real estate owner occupied 255,228 4,586 2,715 918 263,447 Commercial real estate non-owner occupied 369,801 4,923 3,132 1,576 379,432 Farmland 138,732 984 507 293 140,516 Total real estate 1,189,111 16,454 8,079 13,072 1,226,716 Agricultural 46,182 614 — - 46,796 Commercial and industrial 108,609 24,008 981 2,064 135,662 Mortgage warehouse lines 138,020 — — — 138,020 Consumer loans 9,067 210 72 1,277 10,626 Total gross loans and leases $ 1,490,989 $ 41,286 $ 9,132 $ 16,413 $ 1,557,820 Loans may or may not be collateralized, and collection efforts are continuously pursued. Loans or leases may be restructured by management when a borrower has experienced some change in financial status causing an inability to meet the original repayment terms and where the Company believes the borrower will eventually overcome those circumstances and make full restitution. Loans and leases are charged off when they are deemed to be uncollectible, while recoveries are generally recorded only when cash payments are received subsequent to the charge-off. The following tables present the activity in the allowance for loan losses and the recorded investment in loans and impairment method by portfolio segment for each of the years ending December 31, 2018, 2017, and 2016 (dollars in thousands): Commercial and Real Estate Agricultural Industrial (1) Consumer Unallocated Total Allowance for credit losses: Balance, December 31, 2015 $ 4,783 $ 722 $ 2,533 $ 1,263 $ 1,122 $ 10,423 Charge-offs (962 ) — (344 ) (1,905 ) — (3,211 ) Recoveries 983 14 477 1,015 — 2,489 Provision (1,256 ) (527 ) 1,613 835 (665 ) — Balance, December 31, 2016 3,548 209 4,279 1,208 457 9,701 Charge-offs (101 ) (154 ) (669 ) (2,161 ) — (3,085 ) Recoveries 2,235 5 310 1,017 — 3,567 Provision (896 ) 148 (1,148 ) 1,167 (411 ) (1,140 ) Balance, December 31, 2017 4,786 208 2,772 1,231 46 9,043 Charge-offs (2,474 ) — (608 ) (2,226 ) — (5,308 ) Recoveries 374 23 148 1,120 — 1,665 Provision 3,145 25 82 1,114 (16 ) 4,350 Balance, December 31, 2018 $ 5,831 $ 256 $ 2,394 $ 1,239 $ 30 $ 9,750 Loans evaluated for impairment: December 31, 2018 December 31, 2017 December 31, 2016 Individually Collectively Individually Collectively Individually Collectively Real estate $ 13,501 $ 1,440,429 $ 13,072 $ 1,213,644 $ 16,569 $ 900,928 Agricultural 6 49,097 — 46,796 89 46,140 Commercial and industrial (1) 1,744 218,289 2,064 271,618 2,273 284,367 Consumer 821 8,041 1,277 9,349 1,662 10,503 Total loans $ 16,072 $ 1,715,856 $ 16,413 $ 1,541,407 $ 20,593 $ 1,241,938 (1) Includes mortgage warehouse lines Reserves based on method of evaluation for impairment: December 31, 2018 December 31, 2017 December 31, 2016 Specific General Specific General Specific General Real estate $ 937 $ 4,894 $ 728 $ 4,058 $ 488 $ 3,059 Agricultural 2 254 — 208 24 185 Commercial and industrial (1) 918 1,476 188 2,584 608 3,671 Consumer 151 1,088 237 994 287 922 Unallocated — 30 — 46 — 457 Total loan loss reserves $ 2,008 $ 7,742 $ 1,153 $ 7,890 $ 1,407 $ 8,294 (1) Includes mortgage warehouse lines The following tables present the recorded investment in nonaccrual loans and loans past due over 30 days as of December 31, 2018 and December 31, 2017 (dollars in thousands, except footnotes): December 31, 2018 30-59 Days 60-89 Days 90 Days Or More Past Total Financing Non-Accrual Past Due Past Due Due (2) Total Past Due Current Receivables Loans (1) Real Estate: 1-4 family residential construction $ — $ — $ — $ — $ 105,676 $ 105,676 $ — Other construction/land 210 — 27 237 108,786 109,023 82 1-4 family - closed-end 319 — 775 1,094 235,731 236,825 799 Equity lines 1,471 — 57 1,528 54,792 56,320 408 Multi-family residential — — — — 54,877 54,877 — Commercial real estate owner occupied 183 — 102 285 301,039 301,324 605 Commercial real estate non-owner occupied 49 — — 49 438,295 438,344 49 Farmland 1,555 — — 1,555 149,986 151,541 1,642 Total real estate loans 3,787 — 961 4,748 1,449,182 1,453,930 3,585 Agricultural — — — — 49,103 49,103 — Commercial and industrial 1,567 83 886 2,536 125,684 128,220 1,425 Mortgage warehouse lines — — — — 91,813 91,813 - Consumer loans 95 45 56 196 8,666 8,862 146 Total gross loans and leases $ 5,449 $ 128 $ 1,903 $ 7,480 $ 1,724,448 $ 1,731,928 $ 5,156 (1) Included in Total Financing Receivables (2) As of December 31, 2018 there were no loans over 90 days past due and still accruing . December 31, 2017 30-59 Days 60-89 Days 90 Days Or More Past Total Financing Non-Accrual Past Due Past Due Due (2) Total Past Due Current Receivables Loans (1) Real Estate: 1-4 family residential construction $ — $ — $ — $ — $ 74,256 $ 74,256 $ — Other construction/land 20 — — 20 58,759 58,779 77 1-4 family - closed-end 125 — 895 1,020 203,746 204,766 871 Equity lines 466 — 203 669 61,921 62,590 922 Multi-family residential — — — — 42,930 42,930 — Commercial real estate owner occupied 1,270 — — 1,270 262,177 263,447 236 Commercial real estate non-owner occupied — — — — 379,432 379,432 123 Farmland — — — — 140,516 140,516 293 Total real estate loans 1,881 — 1,098 2,979 1,223,737 1,226,716 2,522 Agricultural — — — - 46,796 46,796 — Commercial and industrial 730 496 1,172 2,398 133,264 135,662 1,301 Mortgage warehouse lines — — — — 138,020 138,020 — Consumer loans 157 64 46 267 10,359 10,626 140 Total gross loans and leases $ 2,768 $ 560 $ 2,316 $ 5,644 $ 1,552,176 $ 1,557,820 $ 3,963 (1) Included in Total Financing Receivables (2) Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan’s status changed. Subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Individually impaired loans as of December 31, 2018 and December 31, 2017 were as follows (dollars in thousands): December 31, 2018 Unpaid Principal Recorded Average Recorded Interest Income Balance (1) Investment (2) Related Allowance Investment Recognized (3) With an Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 593 438 44 648 40 1-4 family - closed-end 3,325 3,325 75 3,182 175 Equity lines 4,603 4,550 656 4,368 206 Multifamily residential 373 373 25 359 20 Commercial real estate - owner occupied 842 723 135 740 40 Commercial real estate - non-owner occupied 1,572 1,425 3 1,644 107 Farmland — — — — — Total real estate 11,308 10,834 938 10,941 588 Agricultural 6 6 1 6 — Commercial and industrial 1,724 1,534 918 1,965 40 Consumer loans 813 764 151 909 61 13,851 13,138 2,008 13,821 689 With no Related Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 54 50 — 58 — 1-4 family - closed-end 357 307 — 375 3 Equity lines 224 166 — 221 — Multifamily residential — — — — — Commercial real estate - owner occupied 502 502 — 478 — Commercial real estate - non-owner occupied — — — — — Farmland 1,642 1,642 — 1,538 — Total real estate 2,779 2,667 — 2,670 3 Agricultural — — — — — Commercial and industrial 238 211 — 838 — Consumer loans 182 56 — 273 1 3,199 2,934 — 3,781 4 Total $ 17,050 $ 16,072 $ 2,008 $ 17,602 $ 693 (1) Contractual principal balance due from customer. (2) Principal balance on Company's books, less any direct charge offs. (3) Interest income is recognized on performing balances on a regular accrual basis. December 31, 2017 Unpaid Principal Recorded Average Recorded Interest Income Balance (1) Investment (2) Related Allowance Investment Recognized (3) With an Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 678 523 30 768 44 1-4 family - closed-end 4,061 4,054 109 4,042 226 Equity lines 4,546 4,446 405 4,711 154 Multifamily residential 390 391 29 410 24 Commercial real estate- owner occupied 926 801 151 948 44 Commercial real estate- non-owner occupied 1,724 1,576 4 1,914 111 Farmland — — — — — Total real estate 12,325 11,791 728 12,793 603 Agricultural — — — — — Commercial and industrial 917 917 188 1,576 83 Consumer loans 1,210 1,201 237 1,433 96 14,452 13,909 1,153 15,802 782 With no Related Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 28 28 — 34 — 1-4 family - closed-end 885 665 — 746 2 Equity Lines 206 178 — 208 — Multifamily residential — — — — — Commercial real estate- owner occupied 117 117 — 157 — Commercial real estate- non-owner occupied 10 — — 25 — Farmland 293 293 — 327 — Total real estate 1,539 1,281 — 1,497 2 Agricultural — — — — — Commercial and industrial 1,158 1,147 — 1,433 — Consumer loans 230 76 — 317 — 2,927 2,504 — 3,247 2 Total $ 17,379 $ 16,413 $ 1,153 $ 19,049 $ 784 (1) Contractual principal balance due from customer. (2) Principal balance on Company's books, less any direct charge offs. (3) Interest income is recognized on performing balances on a regular accrual basis. Included in loans above are troubled debt restructurings that were classified as impaired. The Company had $602,000 and $908,000 in commercial loans, $10,630,000 and $11,410,000 in real estate secured loans and $705,000 and $1,158,000 in consumer loans, which were modified as troubled debt restructurings and consequently classified as impaired at December 31, 2018 and 2017, respectively. Additional commitments to existing customers with restructured loans totaled $1,834,000 and $1,831,000 at December 31, 2018 and 2017, respectively. Interest income recognized on impaired loans was $693,000, $784,000, and $1,041,000, for the years ended December 31, 2018, 2017, and 2016, respectively. There was no interest income recognized on a cash basis on impaired loans for the years ended December 31, 2018, 2017, and 2016, respectively. The following is a summary of interest income from non-accrual loans in the portfolio at year-end that was not recognized (dollars in thousands): Years Ended December 31, 2018 2017 2016 Interest that would have been recorded under the loans’ original terms $ 484 $ 361 $ 478 Less gross interest recorded 167 103 158 Foregone interest $ 317 $ 258 $ 320 Certain loans have been pledged to secure short-term borrowing arrangements (see Note 9). These loans totaled $804,705,000 and $693,531,000 at December 31, 2018 and 2017, respectively. Salaries and employee benefits totaling $4,173,000, $3,854,000, and $3,430,000, have been deferred as loan and lease origination costs to be amortized over the estimated lives of the related loans and leases for the years ended December 31, 2018, 2017, and 2016, respectively. During the periods ended December 31, 2018 and 2017, the terms of certain loans were modified as troubled debt restructurings. Types of modifications applied to these loans include a reduction of the stated interest rate, a modification of term, an agreement to collect only interest rather than principal and interest for a specified period, or any combination thereof. The following tables present troubled debt restructurings by type of modification during the period ending December 31, 2018 and December 31, 2017 (dollars in thousands): December 31, 2018 Rate Term Interest Only Rate & Term Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — 1-4 family - closed-end — — — — — Equity lines — 460 504 — 964 Multi-family residential — — — — — Commercial real estate owner occupied — — — — — Commercial real estate non-owner occupied — — — — — Farmland — — — — — Total real estate loans — 460 504 — 964 Agricultural — 7 — — 7 Commercial and industrial — 73 25 225 323 Consumer loans — — 10 — 10 $ — $ 540 $ 539 $ 225 $ 1,304 December 31, 2017 Rate Term Interest Only Rate & Term Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — 1-4 family - closed-end — — — 340 340 Equity lines — 643 — 96 739 Multi-family residential — — — — — Commercial real estate owner occupied — 529 — — 529 Commercial real estate non-owner occupied — — — — — Farmland — — — — — Total real estate loans — 1,172 — 436 1,608 Agricultural — — — — — Commercial and industrial — 15 — — 15 Consumer loans — 7 — — 7 $ — $ 1,194 $ — $ 436 $ 1,630 The following tables present loans by class modified as troubled debt restructurings including any subsequent defaults during the period ending December 31, 2018 and December 31, 2017 (dollars in thousands): Pre-Modification Post-Modification Outstanding Outstanding Recorded Recorded Reserve December 31, 2018 Number of Loans Investment Investment Difference (1) Real estate: Other construction/land 0 $ — $ — $ — 1-4 family - closed-end 0 — — — Equity lines 8 964 964 4 Multi-family residential 0 — — — Commercial real estate - owner occupied 0 — — — Commercial real estate - non-owner occupied 0 — — — Farmland 0 — — — Total real estate loans 964 964 4 Agricultural 1 7 7 2 Commercial and industrial 4 323 323 — Consumer loans 1 10 10 — $ 1,304 $ 1,304 $ 6 (1) This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. Pre-Modification Post-Modification Outstanding Outstanding Recorded Recorded Reserve December 31, 2017 Number of Loans Investment Investment Difference (1) Real estate: Other construction/land 0 $ — $ — $ — 1-4 family - closed-end 6 340 340 32 Equity lines 7 739 739 85 Multi-family residential 0 — — — Commercial real estate - owner occupied 1 529 529 — Commercial real estate - non-owner occupied 0 — — — Farmland 0 — — — Total real estate loans 1,608 1,608 117 Agricultural 0 — — — Commercial and industrial 1 15 15 — Consumer loans 1 7 7 — $ 1,630 $ 1,630 $ 117 (1) This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. In the tables above, there were no TDRs that subsequently defaulted necessitating an increase in the allowance for loan and lease losses for the years ended December 31, 2018 and 2017. The total allowance for loan and lease losses specifically allocated to the balances that were classified as TDRs during the year ended December 31, 2018 and 2017 is $1,048,000 and $957,000, respectively. Loan Servicing The Company originates mortgage loans for sale to investors. During the years ended December 31, 2018, 2017, and 2016, all mortgage loans that were sold by the Company were sold without retention of related servicing. The Company’s servicing portfolio at December 31, 2018, 2017, and 2016 totaled $-0-, $-0-, and $72,000, respectively. Purchased Credit Impaired Loans As part of the acquisitions described in Note 21 Business Combinations , December 31, 2018 Unpaid Principal Balance Carrying Value Real estate secured $ 103 $ — Commercial and industrial — — Consumer — — Total purchased credit impaired loans $ 103 $ — December 31, 2017 Unpaid Principal Balance Carrying Value Real estate secured $ 148 $ 17 Commercial and industrial — — Consumer — — Total purchased credit impaired loans $ 148 $ 17 For those purchased credit impaired loans disclosed above, the Company had by $-0-, $-0-, and $58,000 There is no accretable yield, or income expected to be collected on these purchased credit impaired loans. there were no |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | 5. PREMISES AND EQUIPMENT Premises and equipment at cost consisted of the following (dollars in thousands): December 31, 2018 2017 Land $ 5,751 $ 5,261 Buildings and improvements 21,579 20,255 Furniture, fixtures and equipment 18,958 18,899 Leasehold improvements 15,023 15,013 61,311 59,428 Less accumulated depreciation and amortization 32,712 30,375 Construction in progress 901 335 $ 29,500 $ 29,388 Depreciation and amortization included in occupancy and equipment expense totaled $2,995,000, $2,852,000, and $2,524,000, for the years ended December 31, 2018, 2017, and 2016, respectively. Operating Leases The Company leases certain of its properties under non-cancelable operating leases. Rental expense included in occupancy and equipment expense totaled $2,257,000, $2,482,000, and $1,623,000 and for the years ended December 31, 2018, 2017, and 2016, respectively. Rent commitments, before considering renewal options that generally are present, were as follows (dollars in thousands): Year Ending December 31, 2019 $ 2,190 2020 2,204 2021 1,993 2022 1,558 2023 1,119 Thereafter 3,939 $ 13,003 The Company generally has options to renew its properties facilities after the initial leases expire. The renewal options range from one to ten years and are not included in the payments reflected above. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. GOODWILL AND INTANGIBLE ASSETS Goodwill The change in goodwill during the year is as follows (dollars in thousands): Years Ended December 31, 2018 2017 2016 Balance at January 1 $ 27,357 $ 8,268 $ 6,908 Acquired goodwill — 19,089 1,360 Impairment — — — Balance at December 31 $ 27,357 $ 27,357 $ 8,268 Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. Bank of the Sierra (the “Bank”) is the only subsidiary of the Company that meets the materiality criteria necessary to be deemed an operating segment, and because the Company exists primarily for the purpose of holding the stock of the Bank we have determined that only one unified operating segment (the consolidated Company) exists. At December 31, 2018, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the Company exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Acquired Intangible Assets Acquired intangible assets were as follows at year-end (dollars in thousands): Years Ended December 31, 2018 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangibles $ 8,401 $ 1,946 $ 7,160 $ 926 Aggregate amortization expense was $1,020,000, $508,000, and $272,000 for 2018, 2017, and 2016. Estimated amortization expense for each of the next five years and thereafter (dollars in thousands): 2019 $ 1,074 2020 1,074 2021 1,032 2022 1,000 2023 876 Thereafter $ 1,399 $ 6,455 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Other Assets | 7. OTHER ASSETS Other assets consisted of the following (dollars in thousands): December 31, 2018 2017 Accrued interest receivable $ 8,587 $ 7,682 Deferred tax assets 8,654 6,527 Investment in qualified affordable housing projects 5,905 8,440 Investment in limited partnerships 3,049 3,138 Federal Home Loan Bank stock, at cost 9,894 9,594 Other 14,475 9,332 $ 50,564 $ 44,713 The Company has invested in limited partnerships that operate qualified affordable housing projects to receive tax benefits in the form of tax deductions from operating losses and tax credits. The Company accounts for these investments under the cost method and management analyzes these investments annually for potential impairment. The Company had $1,958,000 in remaining capital commitments to these partnerships at December 31, 2018. The Company holds certain equity investments that are not readily marketable securities and thus are classified as “other assets” on the Company’s balance sheet. These include investments in Pacific Coast Bankers Bancshares, California Economic Development Lending Initiative, and the Federal Home Loan Bank (“FHLB”). The largest of these is the Company’s $9,894,000 investment in FHLB stock, carried at cost. Quarterly, the FHLB evaluates and adjusts the Company’s minimum stock requirement based on the Company’s borrowing activity and membership requirements. Any stock deemed in excess is automatically repurchased by the FHLB at cost. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | 8. DEPOSITS Interest-bearing deposits consisted of the following (dollars in thousands): December 31, 2018 2017 Interest bearing demand deposits $ 101,243 $ 118,533 NOW 434,483 405,057 Savings 283,953 283,126 Money market 123,807 171,611 Time, under $250,000 262,901 175,336 Time, $250,000 or more 247,426 199,289 $ 1,453,813 $ 1,352,952 Aggregate annual maturities of time deposits were as follows (dollars in thousands): Year Ending December 31, 2019 $ 499,067 2020 6,565 2021 2,402 2022 998 2023 534 Thereafter 761 $ 510,327 Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Interest bearing demand deposits $ 364 $ 417 $ 399 NOW 478 427 361 Savings 314 258 229 Money market 146 157 80 CDAR's — — 4 Time deposits 5,653 2,503 1,101 Brokered Deposits 305 — — $ 7,260 $ 3,762 $ 2,174 |
Other Borrowing Arrangements
Other Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Other Borrowing Arrangements | 9. OTHER BORROWING ARRANGEMENTS At year end, short-term borrowings consisted of the following (dollars in thousands): 2018 2017 Average balance outstanding Amount Average interest rate during the year Maximum month-end balance during the year Weighted average interest rate at year-end Average balance outstanding Amount Average interest rate during the year Maximum month-end balance during the year Weighted average interest rate at year-end As of December 31: Repurchase agreements $ 14,332 $ 16,359 .40 % $ 17,672 .40 % $ 8,514 $ 8,150 .40 % $ 11,409 .40 % Overnight federal home loan bank advances 8,967 56,100 2.19 % 56,100 2.43 % 7,074 21,900 .82 % 55,000 .82 % Fed funds purchased 22 — — 850 — 166 — 0.60 % 5,500 — $ 23,321 $ 72,459 $ 74,622 $ 15,754 $ 30,050 $ 71,909 Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $724,210,000 of first mortgage loans under a blanket lien arrangement at year end 2018. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to the total of $538,146,000 at year-end 2018, with a remaining borrowing capacity of $464,179,000 if sufficient additional collateral was pledged. The Company had no borrowings at December 31, 2018 and 2017, respectively from the FRB. The Company was eligible to borrow up to $64,230,000 at year end 2018, which was collateralized by $80,496,000 in first mortgage loans under a blanket lien arrangement. The Company had no long-term borrowings at December 31, 2018 and 2017, respectively. The Company had unsecured lines of credit with its correspondent banks which, in the aggregate, amounted to $80,000,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES The provision for income taxes follows (dollars in thousands): Year Ended December 31, 2018 2017 2016 Federal: Current $ 5,780 $ 8,456 $ 11,517 Effect of tax act — 2,710 — Deferred 179 (828 ) (5,325 ) 5,959 10,338 6,192 State: Current 3,819 3,604 3,396 Deferred 129 (302 ) (788 ) 3,948 3,302 2,608 $ 9,907 $ 13,640 $ 8,800 The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands): December 31, 2018 2017 Deferred tax assets: Allowance for loan losses $ 2,882 $ 2,777 Foreclosed assets 704 868 Deferred compensation 3,538 3,498 Accrued reserves 421 416 Non accrual loans 205 190 Net operating loss carryforward 2,131 2,354 Net unrealized loss on securities available-for-sale 2,798 978 Other 3,510 3,850 Total deferred tax assets 16,189 14,931 Deferred tax liabilities: Premises and equipment (833 ) (1,301 ) Deferred loan costs (2,656 ) (2,344 ) Other (4,046 ) (4,759 ) Total deferred tax liabilities (7,535 ) (8,404 ) Net deferred tax assets $ 8,654 $ 6,527 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). Amont other changes, the Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%. For the year ended December 31, 2017, the Company recorded an income tax expense of $2.7 million related to the remeasurement of federal net deferred tax assets resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35%. The expense for income taxes differs from amounts computed by applying the statutory Federal income tax rates to income before income taxes. The significant items comprising these differences consisted of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Income tax expense at federal statutory rate $ 8,313 $ 11,613 $ 9,228 Increase (decrease) resulting from: State franchise tax expense, net of federal tax effect 3,390 2,363 1,705 Tax exempt municipal income (852 ) (1,299 ) (1,053 ) Affordable housing tax credits (632 ) (711 ) (685 ) Effect of the tax act — 2,710 — Excess tax benefit of stock-based compensation (177 ) (248 ) — Other (135 ) (788 ) (395 ) 9,907 13,640 8,800 Effective tax rate 25.0 % 41.1 % 33.4 % The Company is subject to federal income tax and income tax of the state of California. Our federal income tax returns for the years ended December 31, 2015, 2016 and 2017 are open to audit by the federal authorities and our California state tax returns for the years ended December 31, 2014, 2015, 2016 and 2017 are open to audit by the state authorities. The Company has net operating loss carry forwards of approximately $7,041,000 for federal income and approximately $7,623,000 for California franchise tax purposes. Net operating loss carry forwards, to the extent not used will begin to expire in 2030. Net operating loss carry forwards available from acquisitions are substantially limited by Section 382 of the Internal Revenue Code and benefits not expected to be realized due to the limitation have been excluded from the deferred tax asset and net operating loss carry forward amounts noted above. There were no recorded interest or penalties related to uncertain tax positions as part of income tax for the years ended December 31, 2018, 2017, and 2016, respectively. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease within the next twelve months. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | 11. SUBORDINATED DEBENTURES Sierra Statutory Trust II (“Trust II”), Sierra Capital Trust III (“Trust III”), and Coast Bancorp Statutory Trust II (“Trust IV”), (collectively, the “Trusts”) exist solely for the purpose of issuing trust preferred securities fully and unconditionally guaranteed by the Company. For financial reporting purposes, the Trusts are not consolidated and the Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Subordinated Debentures”) held by the Trusts and issued and guaranteed by the Company are reflected in the Company’s consolidated balance sheet in accordance with provisions of ASC Topic 810. Under applicable regulatory guidance, the amount of trust preferred securities that is eligible as Tier 1 capital is limited to twenty-five percent of the Company’s Tier 1 capital on a pro forma basis. At December 31, 2018, all $34,767,000 of the Company’s trust preferred securities qualified as Tier 1 capital. During the first quarter of 2004, Sierra Statutory Trust II issued 15,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS II), with a liquidation value of $1,000 per security, for gross proceeds of $15,000,000. The entire proceeds of the issuance were invested by Trust II in $15,464,000 of Subordinated Debentures issued by the Company, with identical maturity, re-pricing and payment terms as the TRUPS II. The Subordinated Debentures, purchased by Trust II, represent the sole assets of the Trust II. Those Subordinated Debentures mature on March 17, 2034, bear a current interest rate of 5.54% (based on 3-month LIBOR plus 2.75%), with re-pricing and payments due quarterly. Those Subordinated Debentures are currently redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 17 th th th th The TRUPS II are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on March 17, 2034. Trust II has the option to defer payment of the distributions for a period of up to five years, subject to certain conditions, including that the Company may not pay dividends on its common stock during such period. The TRUPS II issued in the offering were sold in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the TRUPS II. During the second quarter of 2006, Sierra Capital Trust III issued 15,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS III), with a liquidation value of $1,000 per security, for gross proceeds of $15,000,000. The entire proceeds of the issuance were invested by Trust III in $15,464,000 of Subordinated Debentures issued by the Company, with identical maturity, repricing and payment terms as the TRUPS III. The Subordinated Debentures, purchased by Trust III, represent the sole assets of the Trust III. Those Subordinated Debentures mature on September 23, 2036, bear a current interest rate of 4.22% (based on 3-month LIBOR plus 1.40%), with repricing and payments due quarterly. Those Subordinated Debentures are redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 23 rd rd rd rd Trust III has the option to defer payment of the distributions for a period of up to five years, subject to certain conditions, including that the Company may not pay dividends on its common stock during such period. The TRUPS III issued in the offering were sold in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the TRUPS III. During the third quarter of 2016, the Company acquired Coast Bancorp Statutory Trust II, which had issued 7,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS IV), with a liquidation value of $1,000 per security, for gross proceeds of $7,000,000. The entire proceeds of the issuance were invested by Trust IV in $7,217,000 of Subordinated Debentures issued by Coast Bancorp with identical maturity, re-pricing and payment terms as the TRUPS IV. The Subordinated Debentures, purchased by Trust IV, represent the sole assets of the Trust IV. Those Subordinated Debentures mature on December 15, 2037, bear a current interest rate of 4.29% (based on 3-month LIBOR plus 1.50%), with re-pricing and payments due quarterly. Those Subordinated Debentures are currently redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 15 th th th th The TRUPS IV are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on December 15, 2037. Coast Bancorp Statutory Trust II has the option to defer payment of the distributions for a period of up to five years, subject to certain conditions, including that the Company may not pay dividends on its common stock during such period. The TRUPS IV issued in the offering were sold in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the TRUPS IV. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES Letter of Credit The Company holds two letters of credit with the Federal Home Loan Bank of San Francisco totaling $95,446,000. An $90,000,000 letter of credit is pledged to secure public deposits at December 31, 2018 and a $5,446,000 standby letter of credit was obtained on behalf of one of our customers to guarantee financial performance. Should the standby letter of credit be drawn upon, the customer would reimburse the Company from an existing line of credit. Federal Reserve Requirements Banks are required to maintain reserves with the Federal Reserve Bank equal to a specified percentage of their reservable deposits less vault cash. Reserve balances maintained at the Federal Reserve Bank by the Company were $2,674,000 and $-0- at December 31, 2018 and 2017, respectively. Financial Instruments with Off-Balance-Sheet Risk The Company is a party to financial instruments with off‑balance‑sheet risk in the normal course of business. These financial instruments consist of commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and letters of credit as it does for loans included on the balance sheet. The following financial instruments represent off‑balance‑sheet credit risk (dollars in thousands): December 31, 2018 2017 Fixed-rate commitments to extend credit $ 96,648 $ 89,842 Variable-rate commitments to extend credit $ 685,339 $ 601,870 Standby letters of credit $ 8,966 $ 9,168 Commitments to extend credit consist primarily of the unused or unfunded portions of the following: home equity lines of credit; commercial real estate construction loans, where disbursements are made over the course of construction; commercial revolving lines of credit; mortgage warehouse lines of credit; unsecured personal lines of credit; and formalized (disclosed) deposit account overdraft lines. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future Concentration in Real Estate Lending At December 31, 2018, in management’s judgment the Company had, a concentration of loans secured by real estate. At that date, approximately 84% of the Company’s loans were real estate related. Balances secured by commercial buildings and construction and development loans represented 58% of all real estate loans, while loans secured by non-construction residential properties accounted for 31%, and loans secured by farmland were 10% of real estate loans. Although management believes the loans within these concentrations have no more than the normal risk of collectability, a decline in the performance of the economy in general or a decline in real estate values in the Company’s primary market areas, in particular, could have an adverse impact on collectability. Concentration by Geographic Location The Company extends commercial, real estate mortgage, real estate construction and consumer loans to customers primarily in the South Central San Joaquin Valley of California, specifically Tulare, Fresno, Kern, Kings and Madera counties; the Southern California corridor between Santa Paula and Santa Clarita in the counties of Ventura and Los Angeles; and the Coastal counties of San Luis Obispo, Ventura and Santa Barbara. The ability of a substantial portion of the Company’s customers to honor their contracts is dependent on the economy in these areas. Although the Company’s loan portfolio is diversified, there is a relationship in those regions between the local agricultural economy and the economic performance of loans made to non-agricultural customers. Contingencies The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 13. SHAREHOLDERS’ EQUITY Share Repurchase Plan At December 31, 2018, the Company had a stock repurchase plan which has no expiration date. During the year ended December 31, 2018, the Company did not repurchase any Earnings Per Share A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows: For the Years Ended December 31, 2018 2017 2016 Basic Earnings Per Share Net income (dollars in thousands) $ 29,677 $ 19,539 $ 17,567 Weighted average shares outstanding 15,261,794 14,172,196 13,530,293 Basic earnings per share $ 1.94 $ 1.38 $ 1.30 Diluted Earnings Per Share Net income (dollars in thousands) $ 29,677 $ 19,539 $ 17,567 Weighted average shares outstanding 15,261,794 14,172,196 13,530,293 Effect of dilutive stock options 170,326 185,586 121,511 Weighted average shares outstanding 15,432,120 14,357,782 13,651,804 Diluted earnings per share $ 1.92 $ 1.36 $ 1.29 Stock options for 157,532, 90,000, and 466,520 shares of common stock were not considered in computing diluted earnings per common share for 2018, 2017, and 2016, respectively, because they were antidilutive. Stock Options On March 16, 2017 the Company’s Board of Directors approved and adopted the 2017 Stock Incentive Plan (the “2017 Plan”), which became effective May 24, 2017 pursuant to the approval of the Company’s shareholders. The 2017 Plan replaced the Company’s 2007 Stock Incentive Plan (the “2007 Plan”), which expired by its own terms on March 15, 2017. Options to purchase 370,020 shares that were granted under the 2007 Plan were still outstanding as of December 31, 2018, and remain unaffected by that plan’s expiration. The 2017 Plan provides for the issuance of both “incentive” and “nonqualified” stock options to officers and employees, and of “nonqualified” stock options to non-employee directors and consultants of the Company. The 2017 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants, although no restricted stock awards have ever been issued by the Company. The total number of shares of the Company’s authorized but unissued stock reserved for issuance pursuant to awards under the 2017 Plan was initially 850,000 shares, and the number remaining available for grant as of December 31, 2018 was 767,000. All options granted under the 2017 and 2007 Plans have been or will be granted at an exercise price of not less than 100% of the fair market value of the stock on the date of grant, exercisable in installments as provided in individual stock option agreements. In the event of a “Change in Control” as defined in the Plans, all outstanding options shall become exercisable in full (subject to certain notification requirements), and shall terminate if not exercised within a specified period of time unless such options are assumed by the successor corporation or substitute options are granted. Options also terminate in the event an optionee ceases to be employed by or to serve as a director of the Company or its subsidiaries, and the vested portion thereof must be exercised within a specified period after such cessation of employment or service. A summary of the Company’s stock option activity follows (shares in thousands, except exercise price): 2018 2017 2016 Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of year 455 $ 16.33 467 $ 14.12 500 $ 14.83 Exercised (77 ) $ 14.67 (70 ) $ 12.42 (49 ) $ 11.16 Granted 84 $ 27.35 91 $ 28.21 71 $ 17.25 Canceled (9 ) $ 26.73 (33 ) $ 26.41 (55 ) $ 27.17 Outstanding, end of year 453 $ 18.45 $ 3,009 455 $ 16.33 467 $ 14.12 Exercisable, end of year (2) 330 $ 15.77 $ 2,868 400 $ 15.57 412 $ 13.99 (1) The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2018. This amount changes based on changes in the market value of the Company's stock. (2) The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2018 was 5.90 years and 4.91 years, respectively. Information related to stock options during each year follows: 2018 2017 2016 Weighted-average grant-date fair value per share $ 5.94 $ 6.13 $ 2.85 Total intrinsic value of stock options exercised $ 988,000 $ 1,042,000 $ 407,000 Total fair value of stock options vested $ 55,000 $ 494,000 $ 269,000 Cash received from the exercise of 77,100 shares was $1,131,000 for the period ended December 31, 2018 with a related tax benefit of $264,000. The Company is using the Black-Scholes model to value stock options. In accordance with U.S. GAAP, charges of $373,000, $476,000, and $188,000 are reflected in the Company’s income statements for the years ended December 31, 2018, 2017, and 2016, respectively, as pre-tax compensation and directors’ expense related to stock options. The related tax benefit of these options is $227,000, $141,000, and $43,000 for the years ended December 31, 2018, 2017, and 2016, respectively. Unamortized compensation expense associated with unvested stock options outstanding at December 31, 2018 was $144,000, which will be recognized over a weighted average period of 1.6 years. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | 14. REGULATORY MATTERS The Company and the Bank are subject to certain regulatory capital requirements administered by the Board of Governors of the Federal Reserve System and the FDIC. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for 2018 is 1.875%. The net unrealized loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2018, the Company and the Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end December 31, 2018 and 2017, notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. Actual and required capital amounts (in thousands) and ratios are presented below at year end. 2018 2017 Capital Amount Ratio Capital Amount Ratio Leverage Ratio Sierra Bancorp and subsidiary $ 282,484 11.49 % $ 261,987 11.32 % Minimum requirement for "Well-Capitalized" institutions 122,962 5.0 % 115,764 5.0 % Minimum regulatory requirement 98,370 4.0 % 92,611 4.0 % Bank of the Sierra $ 280,184 11.39 % $ 257,087 11.14 % Minimum requirement for "Well-Capitalized" institutions 140,092 5.0 % 115,399 5.0 % Minimum regulatory requirement 98,364 4.0 % 92,320 4.0 % 2018 2017 Capital Amount Ratio Capital Amount Ratio Common Equity Tier 1 Capital Ratio Sierra Bancorp and subsidiary $ 247,717 12.61 % $ 227,399 12.84 % Minimum requirements for "Well-Capitalized" institutions 127,709 6.5 % 115,149 6.5 % Minimum regulatory requirement 88,414 4.5 % 79,718 4.5 % Bank of the Sierra $ 280,184 14.25 % $ 257,085 14.51 % Minimum requirements for "Well-Capitalized" institutions 127,776 6.5 % 115,141 6.5 % Minimum regulatory requirement 88,461 4.5 % 79,713 4.5 % Tier 1 Risk-Based Capital Ratio Sierra Bancorp and subsidiary $ 282,484 14.38 % $ 261,987 14.79 % Minimum requirement for "Well-Capitalized" institutions 157,181 8.0 % 141,722 8.0 % Minimum regulatory requirement 117,885 6.0 % 106,291 6.0 % Bank of the Sierra $ 280,184 14.25 % $ 257,085 14.51 % Minimum requirement for "Well-Capitalized" institutions 157,263 8.0 % 141,712 8.0 % Minimum regulatory requirement 117,947 6.0 % 106,284 6.0 % Total Risk-Based Capital Ratio Sierra Bancorp and subsidiary $ 292,618 14.89 % $ 271,364 15.32 % Minimum requirement for "Well-Capitalized" institutions 196,476 10.0 % 177,152 10.0 % Minimum regulatory requirement 157,181 8.0 % 141,722 8.0 % Bank of the Sierra $ 290,318 14.77 % $ 266,463 15.04 % Minimum requirement for "Well-Capitalized" institutions 196,579 10.0 % 177,140 10.0 % Minimum regulatory requirement 157,263 8.0 % 141,712 8.0 % Under current rules of the Federal Reserve Board, qualified trust preferred securities are one of several “restricted” core capital elements which may be included in Tier 1 capital in an aggregate amount limited to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Amounts of restricted core capital elements in excess of these limits generally may be included in Tier 2 capital. Since the Company had less than $15 billion in assets at December 31, 2018, under the Dodd-Frank Act the Company will be able to continue to include its existing trust preferred securities in Tier 1 Capital to the extent permitted by FRB guidelines. Dividend Restrictions The Company’s ability to pay cash dividends is dependent on dividends paid to it by the Bank, and is also limited by state corporation law. California law allows a California corporation to pay dividends if the company’s retained earnings equal at least the amount of the proposed dividend plus any preferred dividend arrears amount. If a California corporation does not have sufficient retained earnings available for the proposed dividend, it may still pay a dividend to its shareholders if immediately after the dividend the value of the company’s assets would equal or exceed the sum of its total liabilities plus any preferred dividend arrears amount. Dividends from the Bank to the Company are restricted under California law to the lesser of the Bank’s retained earnings or the Bank’s net income for the latest three fiscal years, less dividends previously declared during that period, or, with the approval of the Department of Business Oversight, to the greater of the retained earnings of the Bank, the net income of the Bank for its last fiscal year, or the net income of the Bank for its current fiscal year. As of December 31, 2018, the maximum amount available for dividend distribution under this restriction was approximately $30,428,000. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 15. BENEFIT PLANS Salary Continuation Agreements, Directors’ Retirement and Officer Supplemental Life Insurance Plans The Company has entered into salary continuation agreements with its executive officers, and has established retirement plans for qualifying members of the Board of Directors. The plans provide for annual benefits for up to fifteen years after retirement or death. The benefit obligation under these plans totaled $5,229,000 and $5,150,000 and was fully accrued for the years ended December 31, 2018 and 2017, respectively. The expense recognized under these arrangements totaled $375,000, $325,000 and $141,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Salary continuation benefits paid to former directors or executives of the Company or their beneficiaries totaled $296,000, $254,000 and $275,000 for the years ended December 31, 2018, 2017 and 2016. Certain officers of the Company have supplemental life insurance policies with death benefits available to the officers’ beneficiaries. In connection with these plans the Company has purchased, or acquired through the merger, single premium life insurance policies with cash surrender values totaling $41,561,000 and $40,588,000 at December 31, 2018 and 2017, respectively. Officer and Director Deferred Compensation Plan The Company has established a deferred compensation plan for certain members of the management group and a deferred fee plan for directors for the purpose of providing the opportunity for participants to defer compensation. The Company bears the costs for the plan’s administration and the interest earned on participant deferrals. The related administrative expense was not material for the years ended December 31, 2018, 2017 and 2016. In connection with this plan, life insurance policies with cash surrender values totaling $6,592,000 and $6,520,000 at December 31, 2018 and 2017, respectively, are included on the consolidated balance sheet in other assets. 401(k) Savings Plan The 401(k) savings plan (the “Plan”) allows participants to defer, on a pre-tax basis, up to 15% of their salary (subject to Internal Revenue Service limitations) and accumulate tax-deferred earnings as a retirement fund. The Bank may make a discretionary contribution to match a specified percentage of the first 6% of the participants’ contributions annually. The amount of the matching contribution was 75%, for the years ended December 31, 2018, 2017 and 2016. The matching contribution is discretionary, vests over a period of five years from the participants’ hire date, and is subject to the approval of the Board of Directors. The Company contributed $934,000, $745,000, and $623,000 to the Plan in 2018, 2017 and 2016, respectively. |
Non-interest Revenue
Non-interest Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Non Interest Revenue Abstract [Abstract] | |
Non-interest Revenue | 16. NON-INTEREST REVENUE The major grouping Non-interest revenue also includes one general category of “other income” of which the following are major components (dollars in thousands): Year Ended December 31, 2018 2017 2016 Included in other income: Amortization of limited partnerships $ (2,561 ) $ (961 ) $ (944 ) Dividends on equity investments 961 761 1,007 Unrealized gains recognized on equity investments 1,183 — — Other 3,071 3,651 3,338 Total other non-interest income $ 2,654 $ 3,451 $ 3,401 |
Other Non-interest Expense
Other Non-interest Expense | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Non-interest Expense | 17. OTHER NON-INTEREST EXPENSE Other non-interest expense consisted of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Legal, audit and professional $ 3,032 $ 3,289 $ 2,530 Data processing 5,015 4,365 3,607 Advertising and promotional 2,748 2,514 2,386 Deposit services 5,413 4,426 3,737 Stationery and supplies 1,387 1,309 1,425 Telephone and data communication 1,479 1,654 1,552 Loan and credit card processing 1,142 1,029 635 Foreclosed assets (income) expense, net (730 ) 270 657 Postage 997 1,064 997 Other 1,808 1,691 1,757 Assessments 856 509 1,141 Total other non-interest expense $ 23,147 $ 22,120 $ 20,424 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. RELATED PARTY TRANSACTIONS During the normal course of business, the Bank enters into loans with related parties, including executive officers and directors. These loans are made with substantially the same terms, including rates and collateral, as loans to unrelated parties. The following is a summary of the aggregate activity involving related party borrowers (dollars in thousands): Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 3,047 $ 2,253 $ 2,784 Disbursements 13,873 15,223 16,939 Amounts repaid (14,376 ) (14,429 ) (17,470 ) Balance, end of year $ 2,544 $ 3,047 $ 2,253 Undisbursed commitments to related parties $ 2,130 $ 2,559 $ 2,559 Deposits from related parties held by the Bank at December 31, 2018 and 2017 amounted to $5,069,000 and $7,742,000, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 19. FAIR VALUE Fair value is defined by U.S. GAAP as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: ▪ 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 observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and 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 factors that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair values for each category of financial asset noted below: Securities Collateral-dependent impaired loans Foreclosed assets Assets and liabilities measured at fair value on a recurring basis, including financial liabilities for which the Company has elected the fair value option, are summarized below (dollars in thousands): Fair Value Measurements at December 31, 2018, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Realized Gain/(Loss) Securities: U.S. government agencies $ — $ 15,212 $ — $ 15,212 $ — Mortgage-backed securities — 404,733 — 404,733 — State and political subdivisions — 140,534 — 140,534 — Total available-for-sale securities $ — $ 560,479 $ — $ 560,479 $ — Fair Value Measurements at December 31, 2017, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Realized Gain/(Loss) Securities: U.S. government agencies $ — $ 21,326 $ — $ 21,326 $ — Mortgage-backed securities — 393,802 — 393,802 — State and political subdivisions — 143,201 — 143,201 — Total available-for-sale securities $ - $ 558,329 $ — $ 558,329 $ — Assets and liabilities measured at fair market value on a non-recurring basis are summarized below (dollars in thousands): Year Ended December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral dependent impaired loans $ — $ 205 $ — $ 205 Foreclosed assets $ — $ 1,082 $ — $ 1,082 Year Ended December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral dependent impaired loans $ — $ 377 $ — $ 377 Foreclosed assets $ — $ 5,481 $ — $ 5,481 |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Investments All Other Investments [Abstract] | |
Disclosures about Fair Value of Financial Instruments | 20. DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS Disclosures include estimated fair values for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at December 31, 2018 and 2017: Cash and cash equivalents, and fed funds sold Securities Loans and leases Fair values of loans, excluding loans held for sale, are based on the exit price notion set forth by ASU 2016-01 effective January 1, 2018 and estimated using discounted cash flow analyses. The estimation of fair values of loans results in a Level 3 classification as it requires various assumptions and considerable judgement to incorporate factors relevant when selling loans to market participants, such as funding costs, return requirements of likely buyers and performance expectations of the loans given the current market environment and quality of loans. Estimated fair value of loans carried at cost at December 31, 2017 were based on an entry price notion. Loans held for sale Deposits Short-term borrowings: Long-term borrowings: Subordinated debentures Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): Year Ended December 31, 2018 Estimated Fair Value Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial Assets: Cash and cash equivalents $ 74,132 $ 74,132 $ — $ — $ 74,132 Securities available for sale 560,479 — 560,479 — 560,479 Loans and leases held for investment 1,724,575 — 1,707,463 — 1,707,463 Collateral dependent impaired loans 205 — 205 — 205 Financial Liabilities: Deposits: Non-interest-bearing $ 662,527 $ 662,527 $ — $ — $ 662,527 Interest-bearing 1,453,813 — 1,453,048 — 1,453,048 Fed funds purchased and repurchase agreements 16,359 — 16,359 — 16,359 Short-term borrowings 56,100 — 56,100 — 56,100 Subordinated debentures 34,767 — 30,311 — 30,311 Notional Amount Off-balance-sheet financial instruments: Commitments to extend credit $ 781,987 Standby letters of credit 8,966 Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): Year Ended December 31, 2017 Estimated Fair Value Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial Assets: Cash and cash equivalents $ 70,137 $ 70,137 $ — $ — $ 70,137 Securities available for sale 558,329 — 558,329 — 558,329 Loans and leases held for investment 1,551,174 — 1,563,765 — 1,563,765 Collateral dependent impaired loans 377 — 377 — 377 Financial Liabilities: Deposits: Noninterest-bearing $ 635,434 $ 635,434 $ — $ — $ 635,434 Interest-bearing 1,352,952 — 1,352,952 — 1,352,952 Fed funds purchased and repurchase agreements 8,150 — 8,150 — 8,150 Short-term borrowings 21,900 — 21,900 — 21,900 Subordinated debentures 34,588 — 24,216 — 24,216 Notional Amount Off-balance-sheet financial instruments: Commitments to extend credit $ 691,712 Standby letters of credit 9,168 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | 21. BUSINESS COMBINATIONS On October 1, 2017, the Company acquired 100% of the outstanding common shares of Ojai Community Bancorp (OCB) in exchange for $809,000 in cash and 1,376,431 shares of stock. OCB results of operations were included in the Company’s results beginning October 1, 2017. Acquisition related costs of $41,000 and $2,169,000 are included in other operating expense in the Company’s income statement for the years ended December 31, 2018 and 2017. In accordance with GAAP, the Company recorded $18,464,000 of goodwill and $3,453,000 of core deposit intangibles. Goodwill represents the excess of the consideration transferred (cash) at the acquisition date over the fair values of the identifiable net assets acquired. The core deposit intangible is being amortized using a straight line basis over eight years. For tax purposes goodwill and core deposit intangibles are both non-deductible. The acquisition has provided the Company an opportunity to expand its market presence further in Ventura County and into Santa Barbara. Synergies and cost savings resulting from the combined operations along with the introduction of the Company’s existing products and services into the new region have provided growth opportunities and the potential to increase profitability. The following table summarizes the consideration paid for OCB and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ 809 Equity Instruments 37,370 Fair value of total consideration transferred $ 38,179 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 37,108 Securities 5,492 Federal Home Loan Bank stock — Loans 217,800 Premises and equipment 873 Real estate owned 3,072 Core deposit intangibles 3,453 Other assets 10,479 Total assets acquired 278,277 Deposits 230,950 Borrowed funds 24,400 Other liabilities 3,212 Total liabilities assumed 258,562 Total identifiable net assets 19,715 Goodwill 18,464 $ 38,179 On November 3, 2017, the Company acquired certain deposits of the Woodlake branch of Citizen’s Business Bank (CBB). Results of operations were included in the Company’s results beginning November 3, 2017. Acquisition related costs of $2,000 and $47,000 are included in other operating expense in the Company’s income statement for the years ended December 31, 2018 and 2017. In accordance with GAAP, the Company recorded $625,000 of goodwill and $486,000 of core deposit intangibles. Goodwill represents the excess of the consideration transferred (cash) at the acquisition date over the fair values of the identifiable net assets acquired. The core deposit intangible is being amortized using a straight line basis over eight years. For tax purposes goodwill and core deposit intangibles are both non-deductible. The acquisition has provided the Company an opportunity to expand its market presence in Tulare County. Synergies and cost savings resulting from the combined operations along with the introduction of the Company’s existing products and services into the new region have provided growth opportunities and the potential to increase profitability. The following table summarizes the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ — Equity instruments — Fair value of total consideration transferred $ — Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 25,266 Loans 7 Premises and equipment 469 Core deposit intangibles 486 Total assets acquired 26,228 Deposits 26,661 Other liabilities 192 Total liabilities assumed 26,853 Total identifiable net assets (625 ) Goodwill 625 $ — On July 8, 2016, the Company acquired 100% of the outstanding common shares of Coast National Bancorp (CNB) in exchange for $3,280,000 in cash and 599,226 shares of stock. CNB results of operations were included in the Company’s results beginning July 9, 2016. Acquisition related costs of $9,000 and $2,411,000 are included in other operating expense in the Company’s income statement for the years ended December 31, 2017 and 2016. In accordance with GAAP, the Company recorded $1,360,000 of goodwill and $1,827,000 of core deposit intangibles. Goodwill represents the excess of the consideration transferred (cash) at the acquisition date over the fair values of the identifiable net assets acquired. The core deposit intangible is being amortized using a straight line basis over eight years. For tax purposes goodwill and core deposit intangibles are both non-deductible. The acquisition has provided the Company an opportunity to expand its market presence further west into the Central California Coast. Synergies and cost savings resulting from the combined operations along with the introduction of the Company’s existing products and services into the new region have provided growth opportunities and the potential to increase profitability. The following table summarizes the consideration paid for CNB ts acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ 3,280 Equity Instruments 10,205 Fair value of total consideration transferred $ 13,485 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 18,931 Securities 23,363 Federal Home Loan Bank stock 561 Federal Reserve Bank stock 496 Loans 94,264 Premises and equipment 5,844 Core deposit intangibles 1,827 Other assets 2,504 Total assets acquired 147,790 Deposits 129,038 Trust preferred securities 3,422 Other liabilities 3,205 Total liabilities assumed 135,665 Total identifiable net assets 12,125 Goodwill 1,360 $ 13,485 In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was that of acquired loans. The excess of expected cash flows above the fair value of the majority of loans will be accreted to interest income over the remaining lives of the loans in accordance with FASB Accounting Standards Codification (ASC) 310-20 (formerly SFAS 91). The Company believes that all contractual cash flows related to these loans will be collected. As such, these loans were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. Loans acquired from OCB that were not subject to these requirements had a fair value and gross contractual amounts receivable of $217,800,000 and $223,036,000, as of the date of acquisition. Certain loans, for which specific credit-related deterioration, since origination, was identified, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition on these “purchased credit-impaired” loans is based on a reasonable expectation about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on non-accrual status and have no accretable yield. These loans are discussed in further detail in Note 4 Purchased Credit Impaired Loans. In accordance with GAAP, there was no carryover of the allowance for loan losses that had been previously recorded by OCB. The Company recorded a deferred income tax asset of $741,000 for OCB. The deferred income tax asset was related to net operating loss carry-forward, as well as other tax attributes of OCB, along with the effects of fair value adjustments resulting from applying the acquisition method of accounting. The fair value of savings and transaction deposit accounts acquired from OCB were assumed to approximate their carry value, as these accounts have no stated maturity and are payable on demand. The operating results of the Company for the twelve months ending December 31, 2018, 2017 and 2016 include the operating results of OCB since their respective acquisition dates. The following table presents the net interest and other income, basic earnings per share and diluted earnings per share as if the acquisition with OCB was effective as of January 1, 2018, 2017 and 2016 for the respective year in which the acquisition was closed. The unaudited pro forma information in the following table is intended for informational purposes only and is not necessarily indicative of our future operating results for operating results that would have occurred had the mergers been completed at the beginning of each respective year. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. Unaudited pro forma net interest income, net income and earnings per share presented below (dollars in thousands, except per share data): Pro Forma Pro Forma Pro Forma Year Ended Year Ended Year Ended 2018 2017 2016 Net interest income $ 92,394 $ 82,985 $ 65,182 Net income $ 29,677 $ 19,416 $ 17,567 Basic earnings per share $ 1.94 $ 1.37 $ 1.30 Diluted earnings per share $ 1.92 $ 1.35 $ 1.29 |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
Affordable Housing Program | 22. QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS T he Company invests in qualified affordable housing projects. At December 31, 2018 and 2017, the balance of the investment for qualified affordable housing projects totaled $5,905,000 and $8,440,000, respectively. These balances are reflected in the other assets line on the consolidated balance sheet. Unfunded commitments related to these investments in qualified affordable housing projects totaled $1,958,000 and $3,321,000 at December 31, 2018 and 2017, respectively. During the years ended December 31, 2018, 2017 and 2016, the Company recognized amortization expense on these investments of $2,535,000, $961,000, and $944,000, respectively which was included within pretax income on the consolidated statements of income. Additionally, during the years ended December 31, 2018 and 2017, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $632,000 and $711,000, respectively. The Company had no impairment losses during the years ended December 31, 2018 and 2017. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue From Contracts With Customers | 23. REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within Non-interest Income. The following table presents the Company’s sources of Non-interest Income for the twelve months ended December 31, 2018 and 2017. Items outside the scope of ASC 606 are noted as such. Year Ended December 31, 2018 2017 Non-interest income Service charges on deposits Returned item and overdraft fees $ 6,574 $ 6,406 Other service charges on deposits 5,865 4,824 Debit card interchange income 5,878 4,955 Loss on limited partnerships (1) (2,561 ) (961 ) Dividends on equity investments (1) 961 761 Unrealized gains recognized on equity investments (1) 1,183 — Net gains (losses) on sale of securities (1) 2 500 Other (1) 3,662 5,294 Total non-interest income $ 21,564 $ 21,779 (1) Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financial
Parent Only Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Only Condensed Financial Statements | 2 4 . PARENT ONLY CONDENSED FINANCIAL STATEMENTS BALANCE SHEETS Years Ended December 31, 2018 and 2017 (dollars in thousands) 2018 2017 ASSETS Cash and due from banks $ 2,338 $ 4,908 Investments in bank subsidiary 305,492 285,629 Investment in trust subsidiaries 1,145 1,145 Other assets 20 24 $ 308,995 $ 291,706 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Other liabilities $ 1,204 $ 1,176 Subordinated debentures 34,767 34,588 Total liabilities 35,971 35,764 Shareholders' equity: Common stock 115,573 114,075 Retained earnings 164,117 144,197 Accumulated other comprehensive income, net of taxes (6,666 ) (2,330 ) Total shareholders' equity 273,024 255,942 $ 308,995 $ 291,706 STATEMENTS OF INCOME Years Ended December 31, 2018, 2017 and 2016 (dollars in thousands) 2018 2017 2016 Income: Dividend from subsidiary $ 7,750 $ 15,500 $ 16,500 Gain on sale of securities — 918 58 Other operating income — 16 3 Total income 7,750 16,434 16,561 Expense Salaries and employee benefits 516 481 404 Other expenses 2,533 2,276 1,857 Total expenses 3,049 2,757 2,261 Income before income taxes 4,701 13,677 14,300 Income tax benefit (1,150 ) (1,602 ) (926 ) Income before equity in undistributed income of subsidiary 5,851 15,279 15,226 Equity in undistributed income of subsidiary 23,826 4,260 2,341 Net income $ 29,677 $ 19,539 $ 17,567 STATEMENTS OF CASH FLOWS Years Ended December 31, 2018, 2017 and 2016 (dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 29,677 $ 19,539 $ 17,567 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed net loss of subsidiary (23,826 ) (4,260 ) (2,341 ) Gain on sale of securities — (918 ) (58 ) Increase (decrease) in other assets 182 170 (220 ) (Decrease) increase in other liabilities 28 (757 ) 20 Net cash provided for operating activities 6,061 13,774 14,968 Cash flows from investing activities: Sales of securities — 1,480 170 Cash paid from acquisitions, net (6 ) (7,061 ) (2,994 ) Net cash provided by investing activities (6 ) (5,581 ) (2,824 ) Cash flows from financing activities: Change in other borrowings — — (2,365 ) Stock options exercised 1,131 764 649 Repurchase of common stock — — (2,258 ) Dividends paid (9,756 ) (7,935 ) (6,506 ) Net cash used in by financing activities (8,625 ) (7,171 ) (10,480 ) Net decrease (increase) in cash and cash equivalents (2,570 ) 1,022 1,664 Cash and cash equivalents, beginning of year 4,908 3,886 2,222 Cash and cash equivalents, end of year $ 2,338 $ 4,908 $ 3,886 |
Condensed Quarterly Results of
Condensed Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Condensed Quarterly Results of Operations | 2 5 . CONDENSED QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table sets forth the Company’s unaudited results of operations for the four quarters of 2017 and 2016. In management’s opinion, the results of operations reflect all adjustments (which include only recurring adjustments) necessary to present fairly the condensed results for such periods (dollars in thousands, except per share data). 2018 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 27,042 $ 26,236 $ 24,883 $ 23,476 Interest expense 2,984 2,460 2,083 1,716 Net interest income 24,058 23,776 22,800 21,760 Provision for loan and lease losses 1,400 2,450 300 200 Non-interest income 5,279 5,723 5,429 5,133 Non-interest expense 17,036 17,807 17,294 17,887 Net income before taxes 10,901 9,242 10,635 8,806 Provision for taxes 2,997 2,171 2,643 2,096 Net income $ 7,904 $ 7,071 $ 7,992 $ 6,710 Diluted earnings per share $ .51 $ .46 $ .52 $ .44 Cash dividend per share $ .16 $ .16 $ .16 $ .16 2017 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 24,134 $ 19,832 $ 19,055 $ 17,903 Interest expense 1,592 1,397 1,215 1,019 Net interest income 22,542 18,435 17,840 16,884 Provision for loan and lease losses (1,440 ) — 300 — Non-interest income 5,371 5,910 5,364 5,134 Non-interest expense 19,203 15,445 15,091 15,702 Net income before taxes 10,150 8,900 7,813 6,316 Provision for taxes 6,106 3,158 2,611 1,765 Net income $ 4,044 $ 5,742 $ 5,202 $ 4,551 Diluted earnings per share $ .26 $ .41 $ .37 $ .32 Cash dividend per share $ .14 $ .14 $ .14 $ .14 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly-owned subsidiary, Bank of the Sierra. All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years' balances to conform to classifications used in 2018. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and prevailing practices within the banking industry. In accordance with U.S. GAAP, the Company’s investments in Sierra Statutory Trust II, Sierra Capital Trust III and Coast Bancorp Statutory Trust II are not consolidated and are accounted for under the equity method and included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the trusts are reflected on the Company’s consolidated balance sheet. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make 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. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan and lease losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and lease losses and other real estate, management obtains independent appraisals for significant properties, evaluates the overall loan portfolio characteristics and delinquencies and monitors economic conditions. |
Cash Flows | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and deposits with other financial institutions that mature within 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and fed funds purchased and repurchase agreements. |
Securities | Securities Debt securities may be classified as held to maturity and carried at amortized cost when management has the positive ability and intent to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Debt securities available for sale are carried at fair value with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities are carried at fair value with changes in fair value included in net income. Interest income includes amortization of purchase premium or discount. Premiums or discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of the impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
FHLB Stock and Other Investments | FHLB Stock and Other Investments The Bank is a member of the Federal Home Loan Bank ("FHLB") system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost in other assets, and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank's investment in FHLB stock was approximately $9,894,000 and $9,594,000 at December 31, 2018 and 2017, respectively. |
Loans Held for Sale | Loans Held for Sale The Company may originate loans intended to be sold on the secondary market. Loans originated and intended for sale in the secondary market are carried at cost which approximates fair value since these loans are typically sold shortly after origination. The loan’s cost basis includes unearned deferred fees and costs, and premiums and discounts. If loans held for sale remain on our books for an extended period of time the fair value of those loans is determined using quoted secondary market prices. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans that might be held for sale by the Company typically consist of residential real estate loans. Loans classified as held for sale, if any, are disclosed in Note 4 to the consolidated financial statements. Gains and losses on sales of loans are recognized at the time of sale and are calculated based on the difference between the selling price and the allocated book value of loans sold. Book value allocations are determined in accordance with U.S. GAAP. Any inherent risk of loss on loans sold is transferred to the buyer at the date of sale. The Company has issued various representations and warranties associated with the sale of loans. These representations and warranties may require the Company to repurchase loans with underwriting deficiencies as defined per the applicable sales agreements and certain past due loans within 90 days of the sale. The Company did not experience losses during the years ended December 31, 2018, 2017, or 2016 regarding these representations and warranties. |
Loans and Leases (Financing Receivables) | Loans and Leases (Financing Receivables) Our credit quality classifications of Loans and Leases include Pass, Special Mention, Substandard and Impaired. These classifications are defined in Note 4 to the consolidated financial statements. Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, purchase premiums and discounts, write-downs, and an allowance for loan and lease losses. Loan and lease origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized in interest income as an adjustment to yield of the related loans and leases over the contractual life of the loan using both the effective interest and straight line methods without anticipating prepayments. Interest income for all performing loans, regardless of classification (Pass, Special Mention, Substandard and Impaired), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan’s status changed. For loans with an interest reserve, i.e., where loan proceeds are advanced to the borrower to make interest payments, all interest recognized from the inception of the loan is reversed when the loan is placed on non-accrual. Once a loan is on non-accrual status subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Generally, loans and leases are not restored to accrual status until the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Impaired loans are classified as either nonaccrual or accrual, depending on individual circumstances regarding the collectability of interest and principal according to the contractual terms. |
Purchased Credit Impaired Loans | Purchased Credit Impaired Loans The Company purchases individual loans and groups of loans, some of which may show evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, since there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics. The Company estimates the amount and timing of expected cash flows for the loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan and lease losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income |
Loans Modified in a Troubled Debt Restructuring | Loans Modified in a Troubled Debt Restructuring Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when due to a borrower’s financial difficulties the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. A TDR is generally considered to be in default when it appears likely that the customer will not be able to repay all principal and interest pursuant to the terms of the restructured agreement. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The allowance for loan and lease losses is maintained at a level which, in management’s judgment, is adequate to absorb loan and lease losses inherent in the loan and lease portfolio. The allowance for loan and lease losses is increased by a provision for loan and lease losses, which is charged to expense, and by principal recovered on charged-off balances. It is reduced by principal charge-offs. The amount of the allowance is based on management’s evaluation of the collectability of the loan and lease portfolio, changes in its risk profile, credit concentrations, historical trends, and economic conditions. This evaluation also considers the balance of impaired loans and leases. A loan or lease is impaired when it is probable that the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan or lease agreement. The impairment on certain individually identified loans or leases is measured based on the present value of expected future cash flows discounted at the original effective interest rate of the loan or lease. As a practical expedient, impairment may be measured based on the loan’s or lease’s observable market price or the fair value of collateral if the loan or lease is collateral dependent. The amount of impairment, if any, is recorded through the provision for loan and lease losses and is added to the allowance for loan and lease losses, with any changes over time recognized as additional bad debt expense in our provision for loan losses. Impaired loans with homogenous characteristics, such as one-to-four family residential mortgages and consumer installment loans, may be subjected to a collective evaluation for impairment, considering delinquency and repossession statistics, historical loss experience, and other factors. General reserves cover non-impaired loans and are based on historical net loss rates for each portfolio segment by call report code, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments; changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in quality of the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit; and the effect of the other external factors such as competition and legal and regulatory requirements. Most of the Company’s business activity is with customers located in California within the Southern Central San Joaquin Valley; in the corridor stretching between Santa Paula and Santa Clarita in Southern California, and on the Central Coast. Therefore the Company’s exposure to credit risk is significantly affected by changes in the economy in those regions. The Company considers this concentration of credit risk when assessing and assigning qualitative factors in the allowance for loan losses. Portfolio segments identified by the Company include Agricultural, Commercial and Industrial, Real Estate, Small Business Administration, and Consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans; and credit scores, debt-to-income ratios, collateral type and loan-to-value ratios for consumer loans. Though management believes the allowance for loan and lease losses to be adequate, ultimate losses may vary from their estimates. However, estimates are reviewed periodically, and as adjustments become necessary they are reported in earnings during the periods they become known. In addition, the FDIC and the California Department of Business Oversight, as an integral part of their examination processes, review the allowance for loan and lease losses. These agencies may require additions to the allowance for loan and lease losses based on their judgment about information available at the time of their examinations. |
Reserve for Off-Balance Sheet Commitments | Reserve for Off-Balance Sheet Commitments In addition to the exposure to credit loss from outstanding loans, the Company is also exposed to credit loss from certain off-balance sheet commitments such as unused commitments from revolving lines of credit, mortgage warehouse lines of credit, construction loans and commercial and standby letters of credit. Because the available funds have not yet been disbursed on these commitments the estimated losses are not included in the calculation of the ALLL. The reserve for off-balance sheet commitments is an estimated loss contingency which is included in other liabilities on the Consolidated Balance Sheets. The adjustments to the reserve for off-balance sheet commitments are reported as a noninterest expense. This reserve is for estimated losses that could occur when the Company is contractually obligated to make a payment under these instruments and must seek repayment from a party that may not be as financially sound in the current period as it was when the commitment was originally made. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of premises range between twenty-five to thirty-nine years. The useful lives of furniture, fixtures and equipment range between three to twenty years. Leasehold improvements are amortized over the life of the asset or the term of the related lease, whichever is shorter. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. |
Foreclosed Assets | Foreclosed Assets Foreclosed assets include real estate and other property acquired in full or partial settlement of loan obligations. Upon acquisition, any excess of the recorded investment in the loan balance over the appraised fair market value, net of estimated selling costs, is charged against the allowance for loan and lease losses. A valuation allowance for losses on foreclosed assets is maintained to provide for declines in value. The allowance is established through a provision for losses on foreclosed assets which is included in other non-interest expense. Subsequent gains or losses on sales or write-downs resulting from permanent impairments are recorded in other non-interest expense as incurred. Operating costs after acquisition are expensed. The Company had two foreclosed residential real estate properties recorded at December 31, 2018, as a result of obtaining physical possession of the property. At December 31, 2018, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process was $111,000. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company acquired Sierra National Bank in 2000, Santa Clara Valley Bank in 2014, Coast National Bank in 2016, and Ojai Community Bank and the Woodlake Branch of Citizen’s Business Bank in 2017. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are tested for impairment at least annually or more frequently if events and circumstances exist which indicate that an impairment test should be performed. The Company selected December 31, 2018 as the date to perform the annual impairment test for 2018. Goodwill is the only intangible asset with an indefinite life on our balance sheet. There was no impairment recognized for the years ended December 31, 2018, 2017, and 2016. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The Company’s other intangible assets consist solely of core deposit intangible assets (CDI’s) arising from the acquisitions of Santa Clara Valley Bank, Coast National Bank, a Citizen’s Business Bank Porterville branch deposit portfolio, Ojai Community Bank, the Woodlake Branch of Citizen’s Business Bank and the Lompoc branch of Santa Maria Community Bank. All of the CDI’s are being amortized on a straight line basis over eight years, except for the Citizen’s Business Bank Porterville branch deposit portfolio which is being amortized on a straightline basis over five years. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Details regarding these commitments and financial instruments are discussed in detail in Note 12 to the consolidated financial statements. |
Income Taxes | Income Taxes The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have determined that as of December 31, 2018 all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the financial statements. The Company recognizes interest and penalties related to uncertain tax positions as part of income tax expense. |
Salary Continuation Agreements and Directors’ Retirement Plan | Salary Continuation Agreements and Directors’ Retirement Plan The Company has entered into agreements to provide members of the Board of Directors and certain key executives, or their designated beneficiaries, with annual benefits for up to fifteen years after retirement or death. The Company accrues for these future benefits from the effective date of the plan until the director’s or executive’s expected retirement date in a systematic and rational manner. At the consolidated balance sheet date, the amount of accrued benefits equals the then present value of the benefits expected to be provided to the director or employee, any beneficiaries, and covered dependents in exchange for the director’s or employee’s services to that date. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of an adjustment for the effects of realized gains and losses and any applicable tax. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company’s available for sale securities are included in other comprehensive income after adjusting for the effects of realized gains and losses. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. |
Stock-Based Compensation | Stock-Based Compensation At December 31, 2018, the Company had one stock-based compensation plan, the Sierra Bancorp 2017 Stock Incentive Plan (the “2017 Plan”), which was adopted by the Company’s Board of Directors on March 16, 2017 and approved by the Company’s shareholders on May 24, 2017. The 2017 Plan replaced the Company’s 2007 Stock Incentive Plan (the “2007” Plan), which expired by its own terms on March 15, 2017. Options to purchase shares granted under the 2007 Plan that remained outstanding were unaffected by that plan’s termination. The 2017 Plan covers 850,000 shares of the Company’s authorized but unissued common stock, subject to adjustment for stock splits and dividends, and provides for the issuance of both “incentive” and “nonqualified” stock options to salaried officers and employees, and of “nonqualified” stock options to non-employee directors. The 2017 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants. We have not issued, nor do we currently have plans to issue, restricted stock awards. Compensation cost and director’s expense is recognized for stock options issued to employees and directors and is recognized over the required service period, generally defined as the vesting period. The Company is using the Black-Scholes model to value stock options. The “multiple option” approach is used to allocate the resulting valuation to actual expense for current period. Expected volatility is based on historical volatility of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding subsequent to vesting, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of each option is estimated on the date of grant using the following assumptions: Years Ended December 31, 2018 2017 2016 Dividend yield 2.12 % 1.70 % 2.55 % Expected Volatility 26.26 % 26.47 % 24.62 % Risk-free interest rate 2.38 % 1.92 % 1.14 % Expected option life 5.3 years 5.0 years 5.0 years |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014 the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is the result of a joint project initiated by the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue, and to develop common revenue standards and disclosure requirements that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosures; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required with regard to contracts with customers, as well as for significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The guidance does not apply to revenue associated with financial instruments such as loans and investments, which is accounted for under other provisions of GAAP. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods therein, and the Company thus adopted ASU 2014-09 on January 1, 2018 utilizing the modified retrospective approach. The Company’s primary source of revenue is derived from income on financial instruments, which is not impacted by the guidance in ASU 2014-09. Furthermore, the Company evaluated the nature of its non-interest income, and determined that for income associated with customer contracts transaction prices are typically fixed and performance obligations are satisfied as services are rendered. Therefore, there is little or no judgment involved in the timing of revenue recognition under contracts within the scope of ASU 2014-09, and there was no impact on our financial statements upon the adoption of ASU 2014-09. Please see Note 23 to the consolidated financial statements for more detailed disclosure information. In January 2016 the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities Fair Value In February 25, 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842). The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. This Update is generally effective for public business entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has several lease agreements, including 21 branch locations, one administrative office and three offsite ATM locations which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. Effective January 1, 2019 the Company adopted ASU 2016-02 recording a right of use asset and a corresponding lease liability for $10,300,000. On March 30, 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , as part of its simplification initiative. ASU 2016-09 became effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Accordingly, the Company adopted ASU 2016-09 effective January 1, 2017. Prior guidance dictated that as they relate to share-based payments, tax benefits in excess of compensation costs (“windfalls”) were to be recorded in equity, and tax deficiencies (“shortfalls”) were to be recorded in equity to the extent of previous windfalls and then to the income statement. ASU 2016-09 reduced some of the administrative complexities by eliminating the need to track a windfall “pool,” but it increases the volatility of income tax expense. ASU 2016-09 also removed the requirement to delay recognition of a windfall tax benefit until such time as it reduces current taxes payable. Under this guidance, the benefit is recorded when it arises, subject to normal valuation allowance considerations. This change was applied by us on a modified retrospective basis, as required, with a cumulative-effect adjustment to opening retained earnings. Furthermore, all tax-related cash flows resulting from share-based payments are now reported as operating activities on the statement of cash flows, a change from the previous requirement to present windfall tax benefits as an inflow from financing activities and an outflow from operating activities. However, cash paid by an employer when directly withholding shares for tax withholding purposes is classified as a financing activity. Pursuant to the guidance, entities were permitted to make an accounting policy election for the impact of forfeitures on expense recognition for share-based payment awards. Forfeitures can be estimated in advance, as required previously, or recognized as they occur. Estimates are still required in certain circumstances, such as when an award is modified or a replacement award is issued in a business combination. If elected, the change to recognize forfeitures when they occur would have been adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to opening retained earnings. We did not elect to recognize forfeitures as they occur, and continue to estimate potential forfeitures in advan ce. In September 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017 the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . In January 2017 the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment this update are effective for public business entities In March 2017 the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities In May 2017 the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting In February 2018 the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In May 2017 the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This update was issued to provide clarity, reduce diversity in practice, and lower cost and complexity when applying the guidance in Topic 718. Under the updated guidance, an entity will be expected to account for the effects of an equity award modification unless all the following are met: 1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 continue to apply. ASU 2017-09 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted ASU 2017-09 effective January 1, 2018, but since we have not modified equity awards in the past and do not expect to do so in the future, there was no impact on our financial statements or operations upon adoption. In August 2018 the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Share-based Compensation, Fair Value Assumptions | The fair value of each option is estimated on the date of grant using the following assumptions: Years Ended December 31, 2018 2017 2016 Dividend yield 2.12 % 1.70 % 2.55 % Expected Volatility 26.26 % 26.47 % 24.62 % Risk-free interest rate 2.38 % 1.92 % 1.14 % Expected option life 5.3 years 5.0 years 5.0 years |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Available-For-Sale Investment Securities | The amortized cost and fair value of the securities available-for-sale are as follows (dollars in thousands): December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agencies $ 15,553 $ 12 $ (353 ) $ 15,212 Mortgage-backed securities 414,208 398 (9,873 ) 404,733 State and political subdivisions 140,181 1,206 (853 ) 140,534 Total securities $ 569,942 $ 1,616 $ (11,079 ) $ 560,479 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agencies $ 21,524 $ 70 $ (268 ) $ 21,326 Mortgage-backed securities 399,203 816 (6,217 ) 393,802 State and political subdivisions 140,909 2,673 (381 ) 143,201 Total securities $ 561,636 $ 3,559 $ (6,866 ) $ 558,329 |
Realized Gain (Loss) on Investments | Gross gains and losses from the sales and calls of securities for the years ended were as follows (dollars in thousands): December 31, 2018 2017 2016 Gross gains on sales and calls of securities $ 21 $ 1,024 $ 261 Gross losses on sales and calls of securities (19 ) (524 ) (38 ) Net gains on sales and calls of securities $ 2 $ 500 $ 223 |
Information Pertaining to Investment Securities Aggregated by Investment Category and Length of Time that Individual Securities in a Continuous Loss Position | At December 31, 2018 and 2017, the Company had 552 and 396 securities with unrealized gross losses, respectively. Information pertaining to these securities aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands): December 31, 2018 Less than twelve months Twelve months or longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value U.S. government agencies $ (54 ) $ 2,815 $ (299 ) $ 10,764 Mortgage-backed securities (717 ) 69,686 (9,156 ) 273,230 State and political subdivisions (249 ) 33,864 (604 ) 22,213 Total $ (1,020 ) $ 106,365 $ (10,059 ) $ 306,207 December 31, 2017 Less than twelve months Twelve months or longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value U.S. government agencies $ (79 ) $ 8,154 $ (189 ) $ 7,100 Mortgage-backed securities (2,420 ) 188,885 (3,797 ) 158,344 State and political subdivisions (89 ) 16,218 (292 ) 11,562 Total $ (2,588 ) $ 213,257 $ (4,278 ) $ 177,006 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities available-for-sale at December 31, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without penalties (dollars in thousands): Amortized Cost Fair Value Maturing within one year $ 7,726 $ 7,789 Maturing after one year through five years 199,840 195,519 Maturing after five years through ten years 47,802 47,661 Maturing after ten years 83,606 83,444 Securities not due at a single maturity date: U.S. government agencies collateralized by mortgage obligations 230,968 226,066 $ 569,942 $ 560,479 |
Summary of Amortized Cost and Fair Values of General Obligation and Revenue Bonds | The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations (dollars in thousands): December 31, 2018 December 31, 2017 General obligation bonds Amortized Cost Fair Value Amortized Cost Fair Value State of Issuance: Texas $ 36,331 $ 36,199 $ 32,824 $ 33,184 California 26,928 27,357 27,205 28,027 Washington 16,036 16,062 13,282 13,524 Ohio 8,639 8,601 9,917 9,978 Illinois 6,827 6,838 8,822 8,925 Oregon 4,152 4,115 4,249 4,282 Nevada 3,287 3,345 3,306 3,438 Other (20 and 19 states, respectively) 14,091 14,116 17,036 17,251 Total general obligation bonds 116,291 116,633 116,641 118,609 Revenue bonds State of Issuance: Texas 7,526 7,506 7,088 7,172 Utah 5,364 5,353 5,397 5,454 Indiana 2,641 2,654 2,664 2,721 Washington 1,751 1,780 1,764 1,811 Virginia 1,341 1,315 1,613 1,626 Other (11 and 12 states, respectively) 5,267 5,293 5,742 5,808 Total revenue bonds 23,890 23,901 24,268 24,592 Total obligations of states and political subdivisions $ 140,181 $ 140,534 $ 140,909 $ 143,201 The following table summarizes the amortized cost and fair value of revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the revenue source of repayment for our largest source concentrations (dollars in thousands): December 31, 2018 December 31, 2017 Revenue bonds Amortized Cost Fair Value Amortized Cost Fair Value Revenue Source: Water $ 6,942 $ 6,946 $ 5,160 $ 5,230 College & university 2,583 2,604 3,649 3,715 Sales tax 2,932 2,901 4,375 4,417 Lease 2,053 2,068 3,657 3,706 Electric & power 1,027 1,047 2,076 2,116 Other (12 and 14 sources, respectively) 8,353 8,335 5,351 5,408 Total revenue bonds $ 23,890 $ 23,901 $ 24,268 $ 24,592 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Line Items] | |
Schedule of Participating Mortgage Loans | The composition of the loan and lease portfolio is as follows (dollars in thousands): December 31, 2018 2017 Real estate: Secured by commercial and professional office properties, including construction and development $ 848,691 $ 701,658 Secured by residential properties 453,698 384,542 Secured by farm land 151,541 140,516 Total real estate loans 1,453,930 1,226,716 Agricultural 49,103 46,796 Commercial and industrial 128,220 135,662 Mortgage warehouse lines 91,813 138,020 Consumer 8,862 10,626 Total loans 1,731,928 1,557,820 Deferred loan and lease origination cost, net 2,602 2,774 Allowance for loan and lease losses (9,750 ) (9,043 ) Loans, net $ 1,724,780 $ 1,551,551 |
Credit Quality Classifications for Loan Balances | Credit quality classifications as of December 31, 2018 were as follows (dollars in thousands): Pass Special Mention Substandard Impaired Total Real estate: 1-4 family residential construction $ 105,676 $ — $ — $ — $ 105,676 Other construction/land 108,304 231 — 488 109,023 1-4 family - closed-end 230,022 1,861 1,310 3,632 236,825 Equity lines 49,346 2,194 64 4,716 56,320 Multi-family residential 54,504 — — 373 54,877 Commercial real estate owner occupied 292,886 4,192 3,021 1,225 301,324 Commercial real estate non-owner occupied 429,835 2,730 4,354 1,425 438,344 Farmland 148,680 1,073 146 1,642 151,541 Total real estate 1,419,253 12,281 8,895 13,501 1,453,930 Agricultural 48,517 580 — 6 49,103 Commercial and industrial 110,413 15,686 377 1,744 128,220 Mortgage warehouse lines 91,813 — — — 91,813 Consumer loans 7,851 151 39 821 8,862 Total gross loans and leases $ 1,677,847 $ 28,698 $ 9,311 $ 16,072 $ 1,731,928 Credit quality classifications as of December 31, 2017 were as follows (dollars in thousands): Pass Special Mention Substandard Impaired Total Real estate: 1-4 family residential construction $ 74,256 $ — $ — $ — $ 74,256 Other construction/land 57,421 807 — 551 58,779 1-4 family - closed-end 197,309 1,534 1,204 4,719 204,766 Equity lines 53,825 3,620 521 4,624 62,590 Multi-family residential 42,539 — — 391 42,930 Commercial real estate owner occupied 255,228 4,586 2,715 918 263,447 Commercial real estate non-owner occupied 369,801 4,923 3,132 1,576 379,432 Farmland 138,732 984 507 293 140,516 Total real estate 1,189,111 16,454 8,079 13,072 1,226,716 Agricultural 46,182 614 — - 46,796 Commercial and industrial 108,609 24,008 981 2,064 135,662 Mortgage warehouse lines 138,020 — — — 138,020 Consumer loans 9,067 210 72 1,277 10,626 Total gross loans and leases $ 1,490,989 $ 41,286 $ 9,132 $ 16,413 $ 1,557,820 |
Allowance for Credit Losses on Financing Receivables | The following tables present the activity in the allowance for loan losses and the recorded investment in loans and impairment method by portfolio segment for each of the years ending December 31, 2018, 2017, and 2016 (dollars in thousands): Commercial and Real Estate Agricultural Industrial (1) Consumer Unallocated Total Allowance for credit losses: Balance, December 31, 2015 $ 4,783 $ 722 $ 2,533 $ 1,263 $ 1,122 $ 10,423 Charge-offs (962 ) — (344 ) (1,905 ) — (3,211 ) Recoveries 983 14 477 1,015 — 2,489 Provision (1,256 ) (527 ) 1,613 835 (665 ) — Balance, December 31, 2016 3,548 209 4,279 1,208 457 9,701 Charge-offs (101 ) (154 ) (669 ) (2,161 ) — (3,085 ) Recoveries 2,235 5 310 1,017 — 3,567 Provision (896 ) 148 (1,148 ) 1,167 (411 ) (1,140 ) Balance, December 31, 2017 4,786 208 2,772 1,231 46 9,043 Charge-offs (2,474 ) — (608 ) (2,226 ) — (5,308 ) Recoveries 374 23 148 1,120 — 1,665 Provision 3,145 25 82 1,114 (16 ) 4,350 Balance, December 31, 2018 $ 5,831 $ 256 $ 2,394 $ 1,239 $ 30 $ 9,750 Loans evaluated for impairment: December 31, 2018 December 31, 2017 December 31, 2016 Individually Collectively Individually Collectively Individually Collectively Real estate $ 13,501 $ 1,440,429 $ 13,072 $ 1,213,644 $ 16,569 $ 900,928 Agricultural 6 49,097 — 46,796 89 46,140 Commercial and industrial (1) 1,744 218,289 2,064 271,618 2,273 284,367 Consumer 821 8,041 1,277 9,349 1,662 10,503 Total loans $ 16,072 $ 1,715,856 $ 16,413 $ 1,541,407 $ 20,593 $ 1,241,938 (1) Includes mortgage warehouse lines Reserves based on method of evaluation for impairment: December 31, 2018 December 31, 2017 December 31, 2016 Specific General Specific General Specific General Real estate $ 937 $ 4,894 $ 728 $ 4,058 $ 488 $ 3,059 Agricultural 2 254 — 208 24 185 Commercial and industrial (1) 918 1,476 188 2,584 608 3,671 Consumer 151 1,088 237 994 287 922 Unallocated — 30 — 46 — 457 Total loan loss reserves $ 2,008 $ 7,742 $ 1,153 $ 7,890 $ 1,407 $ 8,294 (1) Includes mortgage warehouse lines |
Past Due Financing Receivables | The following tables present the recorded investment in nonaccrual loans and loans past due over 30 days as of December 31, 2018 and December 31, 2017 (dollars in thousands, except footnotes): December 31, 2018 30-59 Days 60-89 Days 90 Days Or More Past Total Financing Non-Accrual Past Due Past Due Due (2) Total Past Due Current Receivables Loans (1) Real Estate: 1-4 family residential construction $ — $ — $ — $ — $ 105,676 $ 105,676 $ — Other construction/land 210 — 27 237 108,786 109,023 82 1-4 family - closed-end 319 — 775 1,094 235,731 236,825 799 Equity lines 1,471 — 57 1,528 54,792 56,320 408 Multi-family residential — — — — 54,877 54,877 — Commercial real estate owner occupied 183 — 102 285 301,039 301,324 605 Commercial real estate non-owner occupied 49 — — 49 438,295 438,344 49 Farmland 1,555 — — 1,555 149,986 151,541 1,642 Total real estate loans 3,787 — 961 4,748 1,449,182 1,453,930 3,585 Agricultural — — — — 49,103 49,103 — Commercial and industrial 1,567 83 886 2,536 125,684 128,220 1,425 Mortgage warehouse lines — — — — 91,813 91,813 - Consumer loans 95 45 56 196 8,666 8,862 146 Total gross loans and leases $ 5,449 $ 128 $ 1,903 $ 7,480 $ 1,724,448 $ 1,731,928 $ 5,156 (1) Included in Total Financing Receivables (2) As of December 31, 2018 there were no loans over 90 days past due and still accruing . December 31, 2017 30-59 Days 60-89 Days 90 Days Or More Past Total Financing Non-Accrual Past Due Past Due Due (2) Total Past Due Current Receivables Loans (1) Real Estate: 1-4 family residential construction $ — $ — $ — $ — $ 74,256 $ 74,256 $ — Other construction/land 20 — — 20 58,759 58,779 77 1-4 family - closed-end 125 — 895 1,020 203,746 204,766 871 Equity lines 466 — 203 669 61,921 62,590 922 Multi-family residential — — — — 42,930 42,930 — Commercial real estate owner occupied 1,270 — — 1,270 262,177 263,447 236 Commercial real estate non-owner occupied — — — — 379,432 379,432 123 Farmland — — — — 140,516 140,516 293 Total real estate loans 1,881 — 1,098 2,979 1,223,737 1,226,716 2,522 Agricultural — — — - 46,796 46,796 — Commercial and industrial 730 496 1,172 2,398 133,264 135,662 1,301 Mortgage warehouse lines — — — — 138,020 138,020 — Consumer loans 157 64 46 267 10,359 10,626 140 Total gross loans and leases $ 2,768 $ 560 $ 2,316 $ 5,644 $ 1,552,176 $ 1,557,820 $ 3,963 (1) Included in Total Financing Receivables (2) |
Impaired Financing Receivables | Individually impaired loans as of December 31, 2018 and December 31, 2017 were as follows (dollars in thousands): December 31, 2018 Unpaid Principal Recorded Average Recorded Interest Income Balance (1) Investment (2) Related Allowance Investment Recognized (3) With an Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 593 438 44 648 40 1-4 family - closed-end 3,325 3,325 75 3,182 175 Equity lines 4,603 4,550 656 4,368 206 Multifamily residential 373 373 25 359 20 Commercial real estate - owner occupied 842 723 135 740 40 Commercial real estate - non-owner occupied 1,572 1,425 3 1,644 107 Farmland — — — — — Total real estate 11,308 10,834 938 10,941 588 Agricultural 6 6 1 6 — Commercial and industrial 1,724 1,534 918 1,965 40 Consumer loans 813 764 151 909 61 13,851 13,138 2,008 13,821 689 With no Related Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 54 50 — 58 — 1-4 family - closed-end 357 307 — 375 3 Equity lines 224 166 — 221 — Multifamily residential — — — — — Commercial real estate - owner occupied 502 502 — 478 — Commercial real estate - non-owner occupied — — — — — Farmland 1,642 1,642 — 1,538 — Total real estate 2,779 2,667 — 2,670 3 Agricultural — — — — — Commercial and industrial 238 211 — 838 — Consumer loans 182 56 — 273 1 3,199 2,934 — 3,781 4 Total $ 17,050 $ 16,072 $ 2,008 $ 17,602 $ 693 (1) Contractual principal balance due from customer. (2) Principal balance on Company's books, less any direct charge offs. (3) Interest income is recognized on performing balances on a regular accrual basis. December 31, 2017 Unpaid Principal Recorded Average Recorded Interest Income Balance (1) Investment (2) Related Allowance Investment Recognized (3) With an Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 678 523 30 768 44 1-4 family - closed-end 4,061 4,054 109 4,042 226 Equity lines 4,546 4,446 405 4,711 154 Multifamily residential 390 391 29 410 24 Commercial real estate- owner occupied 926 801 151 948 44 Commercial real estate- non-owner occupied 1,724 1,576 4 1,914 111 Farmland — — — — — Total real estate 12,325 11,791 728 12,793 603 Agricultural — — — — — Commercial and industrial 917 917 188 1,576 83 Consumer loans 1,210 1,201 237 1,433 96 14,452 13,909 1,153 15,802 782 With no Related Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 28 28 — 34 — 1-4 family - closed-end 885 665 — 746 2 Equity Lines 206 178 — 208 — Multifamily residential — — — — — Commercial real estate- owner occupied 117 117 — 157 — Commercial real estate- non-owner occupied 10 — — 25 — Farmland 293 293 — 327 — Total real estate 1,539 1,281 — 1,497 2 Agricultural — — — — — Commercial and industrial 1,158 1,147 — 1,433 — Consumer loans 230 76 — 317 — 2,927 2,504 — 3,247 2 Total $ 17,379 $ 16,413 $ 1,153 $ 19,049 $ 784 (1) Contractual principal balance due from customer. (2) Principal balance on Company's books, less any direct charge offs. (3) Interest income is recognized on performing balances on a regular accrual basis. |
Schedule of Loans and Leases Receivable Impaired Interest Income and Lost from Non Accrual Loans | The following is a summary of interest income from non-accrual loans in the portfolio at year-end that was not recognized (dollars in thousands): Years Ended December 31, 2018 2017 2016 Interest that would have been recorded under the loans’ original terms $ 484 $ 361 $ 478 Less gross interest recorded 167 103 158 Foregone interest $ 317 $ 258 $ 320 |
Troubled Debt Restructurings, by Type of Loan Modification | The following tables present troubled debt restructurings by type of modification during the period ending December 31, 2018 and December 31, 2017 (dollars in thousands): December 31, 2018 Rate Term Interest Only Rate & Term Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — 1-4 family - closed-end — — — — — Equity lines — 460 504 — 964 Multi-family residential — — — — — Commercial real estate owner occupied — — — — — Commercial real estate non-owner occupied — — — — — Farmland — — — — — Total real estate loans — 460 504 — 964 Agricultural — 7 — — 7 Commercial and industrial — 73 25 225 323 Consumer loans — — 10 — 10 $ — $ 540 $ 539 $ 225 $ 1,304 December 31, 2017 Rate Term Interest Only Rate & Term Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — 1-4 family - closed-end — — — 340 340 Equity lines — 643 — 96 739 Multi-family residential — — — — — Commercial real estate owner occupied — 529 — — 529 Commercial real estate non-owner occupied — — — — — Farmland — — — — — Total real estate loans — 1,172 — 436 1,608 Agricultural — — — — — Commercial and industrial — 15 — — 15 Consumer loans — 7 — — 7 $ — $ 1,194 $ — $ 436 $ 1,630 |
Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods | The following tables present loans by class modified as troubled debt restructurings including any subsequent defaults during the period ending December 31, 2018 and December 31, 2017 (dollars in thousands): Pre-Modification Post-Modification Outstanding Outstanding Recorded Recorded Reserve December 31, 2018 Number of Loans Investment Investment Difference (1) Real estate: Other construction/land 0 $ — $ — $ — 1-4 family - closed-end 0 — — — Equity lines 8 964 964 4 Multi-family residential 0 — — — Commercial real estate - owner occupied 0 — — — Commercial real estate - non-owner occupied 0 — — — Farmland 0 — — — Total real estate loans 964 964 4 Agricultural 1 7 7 2 Commercial and industrial 4 323 323 — Consumer loans 1 10 10 — $ 1,304 $ 1,304 $ 6 (1) This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. Pre-Modification Post-Modification Outstanding Outstanding Recorded Recorded Reserve December 31, 2017 Number of Loans Investment Investment Difference (1) Real estate: Other construction/land 0 $ — $ — $ — 1-4 family - closed-end 6 340 340 32 Equity lines 7 739 739 85 Multi-family residential 0 — — — Commercial real estate - owner occupied 1 529 529 — Commercial real estate - non-owner occupied 0 — — — Farmland 0 — — — Total real estate loans 1,608 1,608 117 Agricultural 0 — — — Commercial and industrial 1 15 15 — Consumer loans 1 7 7 — $ 1,630 $ 1,630 $ 117 (1) This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. |
Purchased Credit Impaired Loans [Member] | |
Receivables [Line Items] | |
Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods | The carrying amount and unpaid principal balance of those loans are as follows (dollars in thousands): December 31, 2018 Unpaid Principal Balance Carrying Value Real estate secured $ 103 $ — Commercial and industrial — — Consumer — — Total purchased credit impaired loans $ 103 $ — December 31, 2017 Unpaid Principal Balance Carrying Value Real estate secured $ 148 $ 17 Commercial and industrial — — Consumer — — Total purchased credit impaired loans $ 148 $ 17 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Premises and equipment at cost consisted of the following (dollars in thousands): December 31, 2018 2017 Land $ 5,751 $ 5,261 Buildings and improvements 21,579 20,255 Furniture, fixtures and equipment 18,958 18,899 Leasehold improvements 15,023 15,013 61,311 59,428 Less accumulated depreciation and amortization 32,712 30,375 Construction in progress 901 335 $ 29,500 $ 29,388 |
Schedule of rent commitments, before considering renewal options | Rent commitments, before considering renewal options that generally are present, were as follows (dollars in thousands): Year Ending December 31, 2019 $ 2,190 2020 2,204 2021 1,993 2022 1,558 2023 1,119 Thereafter 3,939 $ 13,003 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of change in goodwill | The change in goodwill during the year is as follows (dollars in thousands): Years Ended December 31, 2018 2017 2016 Balance at January 1 $ 27,357 $ 8,268 $ 6,908 Acquired goodwill — 19,089 1,360 Impairment — — — Balance at December 31 $ 27,357 $ 27,357 $ 8,268 |
Schedule of acquired intangible assets | Acquired intangible assets were as follows at year-end (dollars in thousands): Years Ended December 31, 2018 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangibles $ 8,401 $ 1,946 $ 7,160 $ 926 |
Schedule of estimated amortization expense for each of the next five years and thereafter | Estimated amortization expense for each of the next five years and thereafter (dollars in thousands): 2019 $ 1,074 2020 1,074 2021 1,032 2022 1,000 2023 876 Thereafter $ 1,399 $ 6,455 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (dollars in thousands): December 31, 2018 2017 Accrued interest receivable $ 8,587 $ 7,682 Deferred tax assets 8,654 6,527 Investment in qualified affordable housing projects 5,905 8,440 Investment in limited partnerships 3,049 3,138 Federal Home Loan Bank stock, at cost 9,894 9,594 Other 14,475 9,332 $ 50,564 $ 44,713 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule Of Interest Bearing Deposit Liabilities Domestic By Component | Interest-bearing deposits consisted of the following (dollars in thousands): December 31, 2018 2017 Interest bearing demand deposits $ 101,243 $ 118,533 NOW 434,483 405,057 Savings 283,953 283,126 Money market 123,807 171,611 Time, under $250,000 262,901 175,336 Time, $250,000 or more 247,426 199,289 $ 1,453,813 $ 1,352,952 |
Schedule Of Maturities Of Times Deposit | Aggregate annual maturities of time deposits were as follows (dollars in thousands): Year Ending December 31, 2019 $ 499,067 2020 6,565 2021 2,402 2022 998 2023 534 Thereafter 761 $ 510,327 |
Schedule Of Interest Expense Recognized In Interest Bearing Deposit | Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Interest bearing demand deposits $ 364 $ 417 $ 399 NOW 478 427 361 Savings 314 258 229 Money market 146 157 80 CDAR's — — 4 Time deposits 5,653 2,503 1,101 Brokered Deposits 305 — — $ 7,260 $ 3,762 $ 2,174 |
Other Borrowing Arrangements (T
Other Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | At year end, short-term borrowings consisted of the following (dollars in thousands): 2018 2017 Average balance outstanding Amount Average interest rate during the year Maximum month-end balance during the year Weighted average interest rate at year-end Average balance outstanding Amount Average interest rate during the year Maximum month-end balance during the year Weighted average interest rate at year-end As of December 31: Repurchase agreements $ 14,332 $ 16,359 .40 % $ 17,672 .40 % $ 8,514 $ 8,150 .40 % $ 11,409 .40 % Overnight federal home loan bank advances 8,967 56,100 2.19 % 56,100 2.43 % 7,074 21,900 .82 % 55,000 .82 % Fed funds purchased 22 — — 850 — 166 — 0.60 % 5,500 — $ 23,321 $ 72,459 $ 74,622 $ 15,754 $ 30,050 $ 71,909 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes follows (dollars in thousands): Year Ended December 31, 2018 2017 2016 Federal: Current $ 5,780 $ 8,456 $ 11,517 Effect of tax act — 2,710 — Deferred 179 (828 ) (5,325 ) 5,959 10,338 6,192 State: Current 3,819 3,604 3,396 Deferred 129 (302 ) (788 ) 3,948 3,302 2,608 $ 9,907 $ 13,640 $ 8,800 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands): December 31, 2018 2017 Deferred tax assets: Allowance for loan losses $ 2,882 $ 2,777 Foreclosed assets 704 868 Deferred compensation 3,538 3,498 Accrued reserves 421 416 Non accrual loans 205 190 Net operating loss carryforward 2,131 2,354 Net unrealized loss on securities available-for-sale 2,798 978 Other 3,510 3,850 Total deferred tax assets 16,189 14,931 Deferred tax liabilities: Premises and equipment (833 ) (1,301 ) Deferred loan costs (2,656 ) (2,344 ) Other (4,046 ) (4,759 ) Total deferred tax liabilities (7,535 ) (8,404 ) Net deferred tax assets $ 8,654 $ 6,527 |
Schedule of Effective Income Tax Rate Reconciliation | The expense for income taxes differs from amounts computed by applying the statutory Federal income tax rates to income before income taxes. The significant items comprising these differences consisted of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Income tax expense at federal statutory rate $ 8,313 $ 11,613 $ 9,228 Increase (decrease) resulting from: State franchise tax expense, net of federal tax effect 3,390 2,363 1,705 Tax exempt municipal income (852 ) (1,299 ) (1,053 ) Affordable housing tax credits (632 ) (711 ) (685 ) Effect of the tax act — 2,710 — Excess tax benefit of stock-based compensation (177 ) (248 ) — Other (135 ) (788 ) (395 ) 9,907 13,640 8,800 Effective tax rate 25.0 % 41.1 % 33.4 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Financial Instruments Representing Off-Balance-Sheet Credit Risk | The following financial instruments represent off‑balance‑sheet credit risk (dollars in thousands): December 31, 2018 2017 Fixed-rate commitments to extend credit $ 96,648 $ 89,842 Variable-rate commitments to extend credit $ 685,339 $ 601,870 Standby letters of credit $ 8,966 $ 9,168 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows: For the Years Ended December 31, 2018 2017 2016 Basic Earnings Per Share Net income (dollars in thousands) $ 29,677 $ 19,539 $ 17,567 Weighted average shares outstanding 15,261,794 14,172,196 13,530,293 Basic earnings per share $ 1.94 $ 1.38 $ 1.30 Diluted Earnings Per Share Net income (dollars in thousands) $ 29,677 $ 19,539 $ 17,567 Weighted average shares outstanding 15,261,794 14,172,196 13,530,293 Effect of dilutive stock options 170,326 185,586 121,511 Weighted average shares outstanding 15,432,120 14,357,782 13,651,804 Diluted earnings per share $ 1.92 $ 1.36 $ 1.29 |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the Company’s stock option activity follows (shares in thousands, except exercise price): 2018 2017 2016 Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of year 455 $ 16.33 467 $ 14.12 500 $ 14.83 Exercised (77 ) $ 14.67 (70 ) $ 12.42 (49 ) $ 11.16 Granted 84 $ 27.35 91 $ 28.21 71 $ 17.25 Canceled (9 ) $ 26.73 (33 ) $ 26.41 (55 ) $ 27.17 Outstanding, end of year 453 $ 18.45 $ 3,009 455 $ 16.33 467 $ 14.12 Exercisable, end of year (2) 330 $ 15.77 $ 2,868 400 $ 15.57 412 $ 13.99 (1) The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2018. This amount changes based on changes in the market value of the Company's stock. (2) The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2018 was 5.90 years and 4.91 years, respectively. |
Schedule of Options Indexed to Issuer Equity | Information related to stock options during each year follows: 2018 2017 2016 Weighted-average grant-date fair value per share $ 5.94 $ 6.13 $ 2.85 Total intrinsic value of stock options exercised $ 988,000 $ 1,042,000 $ 407,000 Total fair value of stock options vested $ 55,000 $ 494,000 $ 269,000 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual and required capital amounts (in thousands) and ratios are presented below at year end. 2018 2017 Capital Amount Ratio Capital Amount Ratio Leverage Ratio Sierra Bancorp and subsidiary $ 282,484 11.49 % $ 261,987 11.32 % Minimum requirement for "Well-Capitalized" institutions 122,962 5.0 % 115,764 5.0 % Minimum regulatory requirement 98,370 4.0 % 92,611 4.0 % Bank of the Sierra $ 280,184 11.39 % $ 257,087 11.14 % Minimum requirement for "Well-Capitalized" institutions 140,092 5.0 % 115,399 5.0 % Minimum regulatory requirement 98,364 4.0 % 92,320 4.0 % 2018 2017 Capital Amount Ratio Capital Amount Ratio Common Equity Tier 1 Capital Ratio Sierra Bancorp and subsidiary $ 247,717 12.61 % $ 227,399 12.84 % Minimum requirements for "Well-Capitalized" institutions 127,709 6.5 % 115,149 6.5 % Minimum regulatory requirement 88,414 4.5 % 79,718 4.5 % Bank of the Sierra $ 280,184 14.25 % $ 257,085 14.51 % Minimum requirements for "Well-Capitalized" institutions 127,776 6.5 % 115,141 6.5 % Minimum regulatory requirement 88,461 4.5 % 79,713 4.5 % Tier 1 Risk-Based Capital Ratio Sierra Bancorp and subsidiary $ 282,484 14.38 % $ 261,987 14.79 % Minimum requirement for "Well-Capitalized" institutions 157,181 8.0 % 141,722 8.0 % Minimum regulatory requirement 117,885 6.0 % 106,291 6.0 % Bank of the Sierra $ 280,184 14.25 % $ 257,085 14.51 % Minimum requirement for "Well-Capitalized" institutions 157,263 8.0 % 141,712 8.0 % Minimum regulatory requirement 117,947 6.0 % 106,284 6.0 % Total Risk-Based Capital Ratio Sierra Bancorp and subsidiary $ 292,618 14.89 % $ 271,364 15.32 % Minimum requirement for "Well-Capitalized" institutions 196,476 10.0 % 177,152 10.0 % Minimum regulatory requirement 157,181 8.0 % 141,722 8.0 % Bank of the Sierra $ 290,318 14.77 % $ 266,463 15.04 % Minimum requirement for "Well-Capitalized" institutions 196,579 10.0 % 177,140 10.0 % Minimum regulatory requirement 157,263 8.0 % 141,712 8.0 % |
Non-interest Revenue (Tables)
Non-interest Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Non Interest Revenue Abstract [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Non-interest revenue also includes one general category of “other income” of which the following are major components (dollars in thousands): Year Ended December 31, 2018 2017 2016 Included in other income: Amortization of limited partnerships $ (2,561 ) $ (961 ) $ (944 ) Dividends on equity investments 961 761 1,007 Unrealized gains recognized on equity investments 1,183 — — Other 3,071 3,651 3,338 Total other non-interest income $ 2,654 $ 3,451 $ 3,401 |
Other Non-interest Expense (Tab
Other Non-interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | Other non-interest expense consisted of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Legal, audit and professional $ 3,032 $ 3,289 $ 2,530 Data processing 5,015 4,365 3,607 Advertising and promotional 2,748 2,514 2,386 Deposit services 5,413 4,426 3,737 Stationery and supplies 1,387 1,309 1,425 Telephone and data communication 1,479 1,654 1,552 Loan and credit card processing 1,142 1,029 635 Foreclosed assets (income) expense, net (730 ) 270 657 Postage 997 1,064 997 Other 1,808 1,691 1,757 Assessments 856 509 1,141 Total other non-interest expense $ 23,147 $ 22,120 $ 20,424 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of the Aggregate Activity Involving Related Party Borrowers | During the normal course of business, the Bank enters into loans with related parties, including executive officers and directors. These loans are made with substantially the same terms, including rates and collateral, as loans to unrelated parties. The following is a summary of the aggregate activity involving related party borrowers (dollars in thousands): Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 3,047 $ 2,253 $ 2,784 Disbursements 13,873 15,223 16,939 Amounts repaid (14,376 ) (14,429 ) (17,470 ) Balance, end of year $ 2,544 $ 3,047 $ 2,253 Undisbursed commitments to related parties $ 2,130 $ 2,559 $ 2,559 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured at Fair Value On a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, including financial liabilities for which the Company has elected the fair value option, are summarized below (dollars in thousands): Fair Value Measurements at December 31, 2018, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Realized Gain/(Loss) Securities: U.S. government agencies $ — $ 15,212 $ — $ 15,212 $ — Mortgage-backed securities — 404,733 — 404,733 — State and political subdivisions — 140,534 — 140,534 — Total available-for-sale securities $ — $ 560,479 $ — $ 560,479 $ — Fair Value Measurements at December 31, 2017, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Realized Gain/(Loss) Securities: U.S. government agencies $ — $ 21,326 $ — $ 21,326 $ — Mortgage-backed securities — 393,802 — 393,802 — State and political subdivisions — 143,201 — 143,201 — Total available-for-sale securities $ - $ 558,329 $ — $ 558,329 $ — |
Assets And Liabilities Measured At Fair Market Value On a Non-Recurring Basis | Assets and liabilities measured at fair market value on a non-recurring basis are summarized below (dollars in thousands): Year Ended December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral dependent impaired loans $ — $ 205 $ — $ 205 Foreclosed assets $ — $ 1,082 $ — $ 1,082 Year Ended December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral dependent impaired loans $ — $ 377 $ — $ 377 Foreclosed assets $ — $ 5,481 $ — $ 5,481 |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments All Other Investments [Abstract] | |
Carrying Amount And Estimated Fair Values of Financial Instruments | Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): Year Ended December 31, 2018 Estimated Fair Value Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial Assets: Cash and cash equivalents $ 74,132 $ 74,132 $ — $ — $ 74,132 Securities available for sale 560,479 — 560,479 — 560,479 Loans and leases held for investment 1,724,575 — 1,707,463 — 1,707,463 Collateral dependent impaired loans 205 — 205 — 205 Financial Liabilities: Deposits: Non-interest-bearing $ 662,527 $ 662,527 $ — $ — $ 662,527 Interest-bearing 1,453,813 — 1,453,048 — 1,453,048 Fed funds purchased and repurchase agreements 16,359 — 16,359 — 16,359 Short-term borrowings 56,100 — 56,100 — 56,100 Subordinated debentures 34,767 — 30,311 — 30,311 Notional Amount Off-balance-sheet financial instruments: Commitments to extend credit $ 781,987 Standby letters of credit 8,966 Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): Year Ended December 31, 2017 Estimated Fair Value Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial Assets: Cash and cash equivalents $ 70,137 $ 70,137 $ — $ — $ 70,137 Securities available for sale 558,329 — 558,329 — 558,329 Loans and leases held for investment 1,551,174 — 1,563,765 — 1,563,765 Collateral dependent impaired loans 377 — 377 — 377 Financial Liabilities: Deposits: Noninterest-bearing $ 635,434 $ 635,434 $ — $ — $ 635,434 Interest-bearing 1,352,952 — 1,352,952 — 1,352,952 Fed funds purchased and repurchase agreements 8,150 — 8,150 — 8,150 Short-term borrowings 21,900 — 21,900 — 21,900 Subordinated debentures 34,588 — 24,216 — 24,216 Notional Amount Off-balance-sheet financial instruments: Commitments to extend credit $ 691,712 Standby letters of credit 9,168 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Acquisition, Pro Forma Information | Unaudited pro forma net interest income, net income and earnings per share presented below (dollars in thousands, except per share data): Pro Forma Pro Forma Pro Forma Year Ended Year Ended Year Ended 2018 2017 2016 Net interest income $ 92,394 $ 82,985 $ 65,182 Net income $ 29,677 $ 19,416 $ 17,567 Basic earnings per share $ 1.94 $ 1.37 $ 1.30 Diluted earnings per share $ 1.92 $ 1.35 $ 1.29 |
Ojai Community Bancorp [Member] | |
Summary of Consideration Paid And Amounts of Assets Acquired And Liabilities Assumed | The following table summarizes the consideration paid for OCB and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ 809 Equity Instruments 37,370 Fair value of total consideration transferred $ 38,179 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 37,108 Securities 5,492 Federal Home Loan Bank stock — Loans 217,800 Premises and equipment 873 Real estate owned 3,072 Core deposit intangibles 3,453 Other assets 10,479 Total assets acquired 278,277 Deposits 230,950 Borrowed funds 24,400 Other liabilities 3,212 Total liabilities assumed 258,562 Total identifiable net assets 19,715 Goodwill 18,464 $ 38,179 |
Woodlake Branch of Citizen's Business Bank [Member] | |
Summary of Consideration Paid And Amounts of Assets Acquired And Liabilities Assumed | The following table summarizes the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ — Equity instruments — Fair value of total consideration transferred $ — Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 25,266 Loans 7 Premises and equipment 469 Core deposit intangibles 486 Total assets acquired 26,228 Deposits 26,661 Other liabilities 192 Total liabilities assumed 26,853 Total identifiable net assets (625 ) Goodwill 625 $ — |
Coast National Bancorp [Member] | |
Summary of Consideration Paid And Amounts of Assets Acquired And Liabilities Assumed | Consideration Cash $ 3,280 Equity Instruments 10,205 Fair value of total consideration transferred $ 13,485 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 18,931 Securities 23,363 Federal Home Loan Bank stock 561 Federal Reserve Bank stock 496 Loans 94,264 Premises and equipment 5,844 Core deposit intangibles 1,827 Other assets 2,504 Total assets acquired 147,790 Deposits 129,038 Trust preferred securities 3,422 Other liabilities 3,205 Total liabilities assumed 135,665 Total identifiable net assets 12,125 Goodwill 1,360 $ 13,485 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Sources of Non-interest Income | The following table presents the Company’s sources of Non-interest Income for the twelve months ended December 31, 2018 and 2017. Items outside the scope of ASC 606 are noted as such. Year Ended December 31, 2018 2017 Non-interest income Service charges on deposits Returned item and overdraft fees $ 6,574 $ 6,406 Other service charges on deposits 5,865 4,824 Debit card interchange income 5,878 4,955 Loss on limited partnerships (1) (2,561 ) (961 ) Dividends on equity investments (1) 961 761 Unrealized gains recognized on equity investments (1) 1,183 — Net gains (losses) on sale of securities (1) 2 500 Other (1) 3,662 5,294 Total non-interest income $ 21,564 $ 21,779 (1) Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financi_2
Parent Only Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | BALANCE SHEETS Years Ended December 31, 2018 and 2017 (dollars in thousands) 2018 2017 ASSETS Cash and due from banks $ 2,338 $ 4,908 Investments in bank subsidiary 305,492 285,629 Investment in trust subsidiaries 1,145 1,145 Other assets 20 24 $ 308,995 $ 291,706 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Other liabilities $ 1,204 $ 1,176 Subordinated debentures 34,767 34,588 Total liabilities 35,971 35,764 Shareholders' equity: Common stock 115,573 114,075 Retained earnings 164,117 144,197 Accumulated other comprehensive income, net of taxes (6,666 ) (2,330 ) Total shareholders' equity 273,024 255,942 $ 308,995 $ 291,706 |
Schedule of Condensed Income Statement | STATEMENTS OF INCOME Years Ended December 31, 2018, 2017 and 2016 (dollars in thousands) 2018 2017 2016 Income: Dividend from subsidiary $ 7,750 $ 15,500 $ 16,500 Gain on sale of securities — 918 58 Other operating income — 16 3 Total income 7,750 16,434 16,561 Expense Salaries and employee benefits 516 481 404 Other expenses 2,533 2,276 1,857 Total expenses 3,049 2,757 2,261 Income before income taxes 4,701 13,677 14,300 Income tax benefit (1,150 ) (1,602 ) (926 ) Income before equity in undistributed income of subsidiary 5,851 15,279 15,226 Equity in undistributed income of subsidiary 23,826 4,260 2,341 Net income $ 29,677 $ 19,539 $ 17,567 |
Schedule of Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS Years Ended December 31, 2018, 2017 and 2016 (dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 29,677 $ 19,539 $ 17,567 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed net loss of subsidiary (23,826 ) (4,260 ) (2,341 ) Gain on sale of securities — (918 ) (58 ) Increase (decrease) in other assets 182 170 (220 ) (Decrease) increase in other liabilities 28 (757 ) 20 Net cash provided for operating activities 6,061 13,774 14,968 Cash flows from investing activities: Sales of securities — 1,480 170 Cash paid from acquisitions, net (6 ) (7,061 ) (2,994 ) Net cash provided by investing activities (6 ) (5,581 ) (2,824 ) Cash flows from financing activities: Change in other borrowings — — (2,365 ) Stock options exercised 1,131 764 649 Repurchase of common stock — — (2,258 ) Dividends paid (9,756 ) (7,935 ) (6,506 ) Net cash used in by financing activities (8,625 ) (7,171 ) (10,480 ) Net decrease (increase) in cash and cash equivalents (2,570 ) 1,022 1,664 Cash and cash equivalents, beginning of year 4,908 3,886 2,222 Cash and cash equivalents, end of year $ 2,338 $ 4,908 $ 3,886 |
Condensed Quarterly Results o_2
Condensed Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Results of Operations Activities Disclosure | The following table sets forth the Company’s unaudited results of operations for the four quarters of 2017 and 2016. In management’s opinion, the results of operations reflect all adjustments (which include only recurring adjustments) necessary to present fairly the condensed results for such periods (dollars in thousands, except per share data). 2018 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 27,042 $ 26,236 $ 24,883 $ 23,476 Interest expense 2,984 2,460 2,083 1,716 Net interest income 24,058 23,776 22,800 21,760 Provision for loan and lease losses 1,400 2,450 300 200 Non-interest income 5,279 5,723 5,429 5,133 Non-interest expense 17,036 17,807 17,294 17,887 Net income before taxes 10,901 9,242 10,635 8,806 Provision for taxes 2,997 2,171 2,643 2,096 Net income $ 7,904 $ 7,071 $ 7,992 $ 6,710 Diluted earnings per share $ .51 $ .46 $ .52 $ .44 Cash dividend per share $ .16 $ .16 $ .16 $ .16 2017 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 24,134 $ 19,832 $ 19,055 $ 17,903 Interest expense 1,592 1,397 1,215 1,019 Net interest income 22,542 18,435 17,840 16,884 Provision for loan and lease losses (1,440 ) — 300 — Non-interest income 5,371 5,910 5,364 5,134 Non-interest expense 19,203 15,445 15,091 15,702 Net income before taxes 10,150 8,900 7,813 6,316 Provision for taxes 6,106 3,158 2,611 1,765 Net income $ 4,044 $ 5,742 $ 5,202 $ 4,551 Diluted earnings per share $ .26 $ .41 $ .37 $ .32 Cash dividend per share $ .14 $ .14 $ .14 $ .14 |
The Business of Sierra Bancorp
The Business of Sierra Bancorp (Narrative) (Details) | Dec. 31, 2018Branch |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of full service branch offices | 40 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)BranchRealEstateOfficeATMshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | |
Accounting Policies [Line Items] | ||||
Federal Home Loan Bank stock, at cost | $ 9,894,000 | $ 9,594,000 | ||
Losses on representations and warranties associated with sale of loans | 0 | 0 | $ 0 | |
Proceeds from sales of foreclosed assets | $ 13,188,000 | 443,000 | 1,551,000 | |
Number of foreclosed residential real estate properties | RealEstate | 2 | |||
Goodwill and intangible asset impairment | $ 0 | 0 | 0 | |
Finite-lived intangible assets method | All of the CDI’s are being amortized on a straight line basis over eight years, except for the Citizen’s Business Bank Porterville branch deposit portfolio which is being amortized on a straightline basis over five years. | |||
Percentage of minimum likelihood of fair value less than carrying value | 50.00% | |||
Increase in equity securities without readily determinable values and non-interest revenue | $ 1,183,000 | $ 0 | $ 0 | |
Corporate income tax rate | 21.00% | |||
2017 Plan [Member] | ||||
Accounting Policies [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 850,000 | |||
Core Deposits [Member] | ||||
Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||
Core Deposits [Member] | Citizen’s Business Bank Porterville Branch [Member] | ||||
Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Residential Real Estate [Member] | ||||
Accounting Policies [Line Items] | ||||
Proceeds from sales of foreclosed assets | $ 111,000,000 | |||
Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Corporate income tax rate | 35.00% | |||
Building and Building Improvements [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 25 years | |||
Building and Building Improvements [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 39 years | |||
Furniture and Fixtures [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Furniture and Fixtures [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
Purchased Credit Impaired Loans [Member] | ||||
Accounting Policies [Line Items] | ||||
Allowance for loan losses | $ 0 | |||
ASU 2016-01 [Member] | ||||
Accounting Policies [Line Items] | ||||
Increase in equity securities without readily determinable values and non-interest revenue | 1,183,000 | |||
ASU 2016-01 [Member] | PCBB [Member] | ||||
Accounting Policies [Line Items] | ||||
Carrying amount of equity securities without readily determinable fair values | 1,784,000 | |||
Remeasurement gain | $ 1,183,000 | |||
ASC 606 [Member] | ||||
Accounting Policies [Line Items] | ||||
Revenue, performance obligation satisfied, description | Company evaluated the nature of its non-interest income, and determined that for income associated with customer contracts transaction prices are typically fixed and performance obligations are satisfied as services are rendered. | |||
Accounting Standards Update 2016-02 [Member] | ||||
Accounting Policies [Line Items] | ||||
Number of branch locations | Branch | 21 | |||
Number of administration offices | Office | 1 | |||
Number of ATM locations | ATM | 3 | |||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | ||||
Accounting Policies [Line Items] | ||||
Operating lease, right of use asset | $ 10,300,000,000 | |||
Operating lease, liability | $ 10,300,000,000 | |||
ASU 2016-13 [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses increase in percentage | 100.00% | |||
ASU 2018-02 [Member] | ||||
Accounting Policies [Line Items] | ||||
Change in accounting principle cumulative-effect adjustment to the balance sheet | $ 413,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Share-based Compensation, Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Dividend yield | 2.12% | 1.70% | 2.55% |
Expected Volatility | 26.26% | 26.47% | 24.62% |
Risk-free interest rate | 2.38% | 1.92% | 1.14% |
Expected option life | 5 years 3 months 18 days | 5 years | 5 years |
Securities Available-for-Sale -
Securities Available-for-Sale - Amortized Cost and Fair Value of Available-For-Sale Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 569,942 | $ 561,636 |
Gross Unrealized Gains | 1,616 | 3,559 |
Gross Unrealized Losses | (11,079) | (6,866) |
Securities available-for-sale | 560,479 | 558,329 |
US Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,553 | 21,524 |
Gross Unrealized Gains | 12 | 70 |
Gross Unrealized Losses | (353) | (268) |
Securities available-for-sale | 15,212 | 21,326 |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 414,208 | 399,203 |
Gross Unrealized Gains | 398 | 816 |
Gross Unrealized Losses | (9,873) | (6,217) |
Securities available-for-sale | 404,733 | 393,802 |
State and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 140,181 | 140,909 |
Gross Unrealized Gains | 1,206 | 2,673 |
Gross Unrealized Losses | (853) | (381) |
Securities available-for-sale | $ 140,534 | $ 143,201 |
Securities Available-for-Sale_2
Securities Available-for-Sale (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($) | |
Proceeds from Sale of Available-for-sale Securities, Total | $ 6,800,000 | $ 45,700,000 | $ 21,500,000 |
Available-for-sale Securities, Gross Realized Gains | 21,000 | 1,024,000 | 261,000 |
Available-for-sale Securities, Gross Realized Losses | $ 19,000 | $ 524,000 | $ 38,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | Security | 552 | 396 | |
Securities available-for-sale | $ 569,942,000 | $ 561,636,000 | |
Available-for-sale Securities, Amortized Cost Basis, Total | 560,479,000 | 558,329,000 | |
Other Contractual Obligations And Short Term Borrowing Arrangements [Member] | |||
Pledged Financial Instruments, Not Separately Reported, Securities, Total | 222,548,000 | 183,941,000 | |
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value, Total | 217,421,000 | 182,717,000 | |
Equity Security [Member] | |||
Available-for-sale Securities, Gross Realized Gains | $ 918,000,000 | ||
States and Political Subdivisions [Member] | |||
Securities available-for-sale | $ 140,533,000 | ||
U.S. Government Agencies [Member] | |||
Number Of Securities With Realized Gross Gains | Security | 11 | 25 | |
Available-for-sale Securities, Gross Realized Gains | $ 21,000,000 | $ 106,000,000 | |
Other Debt Obligations [Member] | |||
Number Of Securities With Unrealized Gross Losses | Security | 8 | 59 | |
Available-for-sale Securities, Gross Realized Losses | $ 19,000,000 | $ 524,000,000 | |
States and Political Subdivisions [Member] | |||
Available-for-sale Securities, Amortized Cost Basis, Total | $ 2,500,000 |
Securities Available-for-Sale_3
Securities Available-for-Sale - Realized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Available For Sale Securities Gross Realized Gain Loss [Abstract] | |||||
Gross gains on sales and calls of securities | $ 21 | $ 1,024 | $ 261 | ||
Gross losses on sales and calls of securities | (19) | (524) | (38) | ||
Net gains on sales and calls of securities | $ 2 | [1] | $ 500 | [1] | $ 223 |
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Securities Available-for-Sale_4
Securities Available-for-Sale - Information Pertaining to Investment Securities Aggregated by Investment Category and Length of Time that Individual Securities in a Continuous Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less than twelve months | $ (1,020) | $ (2,588) |
Fair Value, Less than twelve months | 106,365 | 213,257 |
Gross Unrealized Losses, Twelve months or more | (10,059) | (4,278) |
Fair Value, Twelve months or more | 306,207 | 177,006 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less than twelve months | (54) | (79) |
Fair Value, Less than twelve months | 2,815 | 8,154 |
Gross Unrealized Losses, Twelve months or more | (299) | (189) |
Fair Value, Twelve months or more | 10,764 | 7,100 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less than twelve months | (717) | (2,420) |
Fair Value, Less than twelve months | 69,686 | 188,885 |
Gross Unrealized Losses, Twelve months or more | (9,156) | (3,797) |
Fair Value, Twelve months or more | 273,230 | 158,344 |
State and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less than twelve months | (249) | (89) |
Fair Value, Less than twelve months | 33,864 | 16,218 |
Gross Unrealized Losses, Twelve months or more | (604) | (292) |
Fair Value, Twelve months or more | $ 22,213 | $ 11,562 |
Securities Available-for-Sale_5
Securities Available-for-Sale - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Contractual Maturity [Line Items] | ||
Maturing within one year, Amortized Cost | $ 7,726 | |
Maturing after one year through five years, Amortized Cost | 199,840 | |
Maturing after five years through ten years, Amortized Cost | 47,802 | |
Maturing after ten years, Amortized Cost | 83,606 | |
Amortized Cost, Total | 569,942 | $ 561,636 |
Maturing within one year, Fair Value | 7,789 | |
Maturing after one year through five years, Fair Value | 195,519 | |
Maturing after five years through ten years, Fair Value | 47,661 | |
Maturing after ten years, Fair Value | 83,444 | |
Fair Value, Total | 560,479 | $ 558,329 |
U.S government agencies collateralized by mortgage obligations [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Contractual Maturity [Line Items] | ||
Investment securities not due at a single maturity date, Amortized Cost | 230,968 | |
Investment securities not due at a single maturity date, Fair Value | $ 226,066 |
Securities Available-for-Sale_6
Securities Available-for-Sale - Summary of Amortized Cost and Fair Values of General Obligation and Revenue Bonds (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | $ 569,942 | $ 561,636 |
Fair Value | 560,479 | 558,329 |
State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 140,181 | 140,909 |
Fair Value | 140,534 | 143,201 |
General Obligation Bonds [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 116,291 | 116,641 |
Fair Value | 116,633 | 118,609 |
General Obligation Bonds [Member] | California [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 26,928 | 27,205 |
Fair Value | 27,357 | 28,027 |
General Obligation Bonds [Member] | Texas [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 36,331 | 32,824 |
Fair Value | 36,199 | 33,184 |
General Obligation Bonds [Member] | Illinois [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 6,827 | 8,822 |
Fair Value | 6,838 | 8,925 |
General Obligation Bonds [Member] | Ohio [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 8,639 | 9,917 |
Fair Value | 8,601 | 9,978 |
General Obligation Bonds [Member] | Washington [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 16,036 | 13,282 |
Fair Value | 16,062 | 13,524 |
General Obligation Bonds [Member] | Oregon [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 4,152 | 4,249 |
Fair Value | 4,115 | 4,282 |
General Obligation Bonds [Member] | Nevada [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 3,287 | 3,306 |
Fair Value | 3,345 | 3,438 |
General Obligation Bonds [Member] | Other [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 14,091 | 17,036 |
Fair Value | 14,116 | 17,251 |
Revenue Bonds [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 23,890 | 24,268 |
Fair Value | 23,901 | 24,592 |
Revenue Bonds [Member] | Water [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 6,942 | 5,160 |
Fair Value | 6,946 | 5,230 |
Revenue Bonds [Member] | College & university [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,583 | 3,649 |
Fair Value | 2,604 | 3,715 |
Revenue Bonds [Member] | Sales tax [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,932 | 4,375 |
Fair Value | 2,901 | 4,417 |
Revenue Bonds [Member] | Lease [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,053 | 3,657 |
Fair Value | 2,068 | 3,706 |
Revenue Bonds [Member] | Electric & power [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 1,027 | 2,076 |
Fair Value | 1,047 | 2,116 |
Revenue Bonds [Member] | Other (12 and 14 sources) [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 8,353 | 5,351 |
Fair Value | 8,335 | 5,408 |
Revenue Bonds [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 23,890 | 24,268 |
Fair Value | 23,901 | 24,592 |
Revenue Bonds [Member] | Texas [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 7,526 | 7,088 |
Fair Value | 7,506 | 7,172 |
Revenue Bonds [Member] | Washington [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 1,751 | 1,764 |
Fair Value | 1,780 | 1,811 |
Revenue Bonds [Member] | Other [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 5,267 | 5,742 |
Fair Value | 5,293 | 5,808 |
Revenue Bonds [Member] | Utah [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 5,364 | 5,397 |
Fair Value | 5,353 | 5,454 |
Revenue Bonds [Member] | Indiana [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,641 | 2,664 |
Fair Value | 2,654 | 2,721 |
Revenue Bonds [Member] | Virginia [Member] | State and political subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Type Of Bonds [Line Items] | ||
Amortized Cost | 1,341 | 1,613 |
Fair Value | $ 1,315 | $ 1,626 |
Loans and Leases - Schedule of
Loans and Leases - Schedule of Participating Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Real estate: | ||
Agricultural | $ 49,103 | $ 46,796 |
Commercial and industrial | 128,220 | 135,662 |
Mortgage warehouse lines | 91,813 | 138,020 |
Consumer | 8,862 | 10,626 |
Gross loans and leases | 1,731,928 | 1,557,820 |
Deferred loan and lease origination cost, net | 2,602 | 2,774 |
Allowance for loan and lease losses | (9,750) | (9,043) |
Loans, net | 1,724,780 | 1,551,551 |
Secured By Commercial And Professional Office Properties Including Construction And Development [Member] | ||
Real estate: | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 848,691 | 701,658 |
Secured by residential properties [Member] | ||
Real estate: | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 453,698 | 384,542 |
Secured by farm land [Member] | ||
Real estate: | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 151,541 | 140,516 |
Total real estate loans [Member] | ||
Real estate: | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 1,453,930 | $ 1,226,716 |
Loans and Leases - Credit Quali
Loans and Leases - Credit Quality Classifications for Loan Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 1,731,928 | $ 1,557,820 |
Agricultural [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 49,103 | 46,796 |
Commercial And Industrial [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 128,220 | 135,662 |
Mortgage warehouse lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 91,813 | 138,020 |
Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 8,862 | 10,626 |
Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,677,847 | 1,490,989 |
Pass [Member] | Agricultural [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 48,517 | 46,182 |
Pass [Member] | Commercial And Industrial [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 110,413 | 108,609 |
Pass [Member] | Mortgage warehouse lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 91,813 | 138,020 |
Pass [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 7,851 | 9,067 |
Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 28,698 | 41,286 |
Special Mention [Member] | Agricultural [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 580 | 614 |
Special Mention [Member] | Commercial And Industrial [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 15,686 | 24,008 |
Special Mention [Member] | Mortgage warehouse lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 151 | 210 |
Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 9,311 | 9,132 |
Substandard [Member] | Agricultural [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 377 | 981 |
Substandard [Member] | Mortgage warehouse lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 39 | 72 |
Impaired [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 16,072 | 16,413 |
Impaired [Member] | Agricultural [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 6 | 0 |
Impaired [Member] | Commercial And Industrial [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,744 | 2,064 |
Impaired [Member] | Mortgage warehouse lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Impaired [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 821 | 1,277 |
Real Estate Loan [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,453,930 | 1,226,716 |
Real Estate Loan [Member] | 1-4 family residential construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 105,676 | 74,256 |
Real Estate Loan [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 109,023 | 58,779 |
Real Estate Loan [Member] | 1-4 Family - closed-end [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 236,825 | 204,766 |
Real Estate Loan [Member] | Equity lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 56,320 | 62,590 |
Real Estate Loan [Member] | Multi-family residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 54,877 | 42,930 |
Real Estate Loan [Member] | Commercial real estate owner occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 301,324 | 263,447 |
Real Estate Loan [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 438,344 | 379,432 |
Real Estate Loan [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 151,541 | 140,516 |
Real Estate Loan [Member] | Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,419,253 | 1,189,111 |
Real Estate Loan [Member] | Pass [Member] | 1-4 family residential construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 105,676 | 74,256 |
Real Estate Loan [Member] | Pass [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 108,304 | 57,421 |
Real Estate Loan [Member] | Pass [Member] | 1-4 Family - closed-end [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 230,022 | 197,309 |
Real Estate Loan [Member] | Pass [Member] | Equity lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 49,346 | 53,825 |
Real Estate Loan [Member] | Pass [Member] | Multi-family residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 54,504 | 42,539 |
Real Estate Loan [Member] | Pass [Member] | Commercial real estate owner occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 292,886 | 255,228 |
Real Estate Loan [Member] | Pass [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 429,835 | 369,801 |
Real Estate Loan [Member] | Pass [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 148,680 | 138,732 |
Real Estate Loan [Member] | Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 12,281 | 16,454 |
Real Estate Loan [Member] | Special Mention [Member] | 1-4 family residential construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Real Estate Loan [Member] | Special Mention [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 231 | 807 |
Real Estate Loan [Member] | Special Mention [Member] | 1-4 Family - closed-end [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,861 | 1,534 |
Real Estate Loan [Member] | Special Mention [Member] | Equity lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,194 | 3,620 |
Real Estate Loan [Member] | Special Mention [Member] | Multi-family residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Real Estate Loan [Member] | Special Mention [Member] | Commercial real estate owner occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,192 | 4,586 |
Real Estate Loan [Member] | Special Mention [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,730 | 4,923 |
Real Estate Loan [Member] | Special Mention [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,073 | 984 |
Real Estate Loan [Member] | Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 8,895 | 8,079 |
Real Estate Loan [Member] | Substandard [Member] | 1-4 family residential construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Real Estate Loan [Member] | Substandard [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Real Estate Loan [Member] | Substandard [Member] | 1-4 Family - closed-end [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,310 | 1,204 |
Real Estate Loan [Member] | Substandard [Member] | Equity lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 64 | 521 |
Real Estate Loan [Member] | Substandard [Member] | Multi-family residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Real Estate Loan [Member] | Substandard [Member] | Commercial real estate owner occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,021 | 2,715 |
Real Estate Loan [Member] | Substandard [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,354 | 3,132 |
Real Estate Loan [Member] | Substandard [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 146 | 507 |
Real Estate Loan [Member] | Impaired [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 13,501 | 13,072 |
Real Estate Loan [Member] | Impaired [Member] | 1-4 family residential construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Real Estate Loan [Member] | Impaired [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 488 | 551 |
Real Estate Loan [Member] | Impaired [Member] | 1-4 Family - closed-end [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,632 | 4,719 |
Real Estate Loan [Member] | Impaired [Member] | Equity lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,716 | 4,624 |
Real Estate Loan [Member] | Impaired [Member] | Multi-family residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 373 | 391 |
Real Estate Loan [Member] | Impaired [Member] | Commercial real estate owner occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,225 | 918 |
Real Estate Loan [Member] | Impaired [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,425 | 1,576 |
Real Estate Loan [Member] | Impaired [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 1,642 | $ 293 |
Loans and Leases - Allowance fo
Loans and Leases - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Allowance for credit losses: | ||||
Beginning Balance | $ 9,043 | $ 9,701 | $ 10,423 | |
Charge-offs | (5,308) | (3,085) | (3,211) | |
Recoveries | 1,665 | 3,567 | 2,489 | |
Provision | 4,350 | (1,140) | 0 | |
Ending Balance | 9,750 | 9,043 | 9,701 | |
Loans evaluated for impairment: | ||||
Individually | 16,072 | 16,413 | 20,593 | |
Collectively | 1,715,856 | 1,541,407 | 1,241,938 | |
Reserves: | ||||
Specific | 2,008 | 1,153 | 1,407 | |
General | 7,742 | 7,890 | 8,294 | |
Unallocated [Member] | ||||
Allowance for credit losses: | ||||
Beginning Balance | 46 | 457 | 1,122 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision | (16) | (411) | (665) | |
Ending Balance | 30 | 46 | 457 | |
Reserves: | ||||
Specific | 0 | 0 | 0 | |
General | 30 | 46 | 457 | |
Agricultural Products [Member] | ||||
Allowance for credit losses: | ||||
Beginning Balance | 208 | 209 | 722 | |
Charge-offs | 0 | (154) | 0 | |
Recoveries | 23 | 5 | 14 | |
Provision | 25 | 148 | (527) | |
Ending Balance | 256 | 208 | 209 | |
Loans evaluated for impairment: | ||||
Individually | 6 | 0 | 89 | |
Collectively | 49,097 | 46,796 | 46,140 | |
Reserves: | ||||
Specific | 2 | 0 | 24 | |
General | 254 | 208 | 185 | |
Commercial And Industrial [Member] | ||||
Allowance for credit losses: | ||||
Beginning Balance | [1] | 2,772 | 4,279 | 2,533 |
Charge-offs | [1] | (608) | (669) | (344) |
Recoveries | [1] | 148 | 310 | 477 |
Provision | [1] | 82 | (1,148) | 1,613 |
Ending Balance | [1] | 2,394 | 2,772 | 4,279 |
Loans evaluated for impairment: | ||||
Individually | [1] | 1,744 | 2,064 | 2,273 |
Collectively | [1] | 218,289 | 271,618 | 284,367 |
Reserves: | ||||
Specific | [1] | 918 | 188 | 608 |
General | [1] | 1,476 | 2,584 | 3,671 |
Consumer Loans [Member] | ||||
Allowance for credit losses: | ||||
Beginning Balance | 1,231 | 1,208 | 1,263 | |
Charge-offs | (2,226) | (2,161) | (1,905) | |
Recoveries | 1,120 | 1,017 | 1,015 | |
Provision | 1,114 | 1,167 | 835 | |
Ending Balance | 1,239 | 1,231 | 1,208 | |
Loans evaluated for impairment: | ||||
Individually | 821 | 1,277 | 1,662 | |
Collectively | 8,041 | 9,349 | 10,503 | |
Reserves: | ||||
Specific | 151 | 237 | 287 | |
General | 1,088 | 994 | 922 | |
Real Estate Loan [Member] | ||||
Allowance for credit losses: | ||||
Beginning Balance | 4,786 | 3,548 | 4,783 | |
Charge-offs | (2,474) | (101) | (962) | |
Recoveries | 374 | 2,235 | 983 | |
Provision | 3,145 | (896) | (1,256) | |
Ending Balance | 5,831 | 4,786 | 3,548 | |
Loans evaluated for impairment: | ||||
Individually | 13,501 | 13,072 | 16,569 | |
Collectively | 1,440,429 | 1,213,644 | 900,928 | |
Reserves: | ||||
Specific | 937 | 728 | 488 | |
General | $ 4,894 | $ 4,058 | $ 3,059 | |
[1] | Includes mortgage warehouse lines |
Loans and Leases - Past Due Fin
Loans and Leases - Past Due Financing Receivables (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | $ 7,480,000 | $ 5,644,000 | |||
Current | 1,724,448,000 | 1,552,176,000 | |||
Total Financing Receivables | 1,731,928,000 | 1,557,820,000 | |||
Non-Accrual Loans | [1] | 5,156,000 | 3,963,000 | ||
Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 4,748,000 | 2,979,000 | |||
Current | 1,449,182,000 | 1,223,737,000 | |||
Total Financing Receivables | 1,453,930,000 | 1,226,716,000 | |||
Non-Accrual Loans | [1] | 3,585,000 | 2,522,000 | ||
1-4 family residential construction [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Current | 105,676,000 | 74,256,000 | |||
Total Financing Receivables | 105,676,000 | 74,256,000 | |||
Non-Accrual Loans | [1] | 0 | 0 | ||
Other construction/land [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 237,000 | 20,000 | |||
Current | 108,786,000 | 58,759,000 | |||
Total Financing Receivables | 109,023,000 | 58,779,000 | |||
Non-Accrual Loans | [1] | 82,000 | 77,000 | ||
1-4 Family - closed-end [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,094,000 | 1,020,000 | |||
Current | 235,731,000 | 203,746,000 | |||
Total Financing Receivables | 236,825,000 | 204,766,000 | |||
Non-Accrual Loans | [1] | 799,000 | 871,000 | ||
Equity lines [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,528,000 | 669,000 | |||
Current | 54,792,000 | 61,921,000 | |||
Total Financing Receivables | 56,320,000 | 62,590,000 | |||
Non-Accrual Loans | [1] | 408,000 | 922,000 | ||
Multi Family Residential [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Current | 54,877,000 | 42,930,000 | |||
Total Financing Receivables | 54,877,000 | 42,930,000 | |||
Non-Accrual Loans | [1] | 0 | 0 | ||
Commercial Real Estate Owner Occupied [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 285,000 | 1,270,000 | |||
Current | 301,039,000 | 262,177,000 | |||
Total Financing Receivables | 301,324,000 | 263,447,000 | |||
Non-Accrual Loans | [1] | 605,000 | 236,000 | ||
Commercial Real Estate Non Owner Occupied [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 49,000 | 0 | |||
Current | 438,295,000 | 379,432,000 | |||
Total Financing Receivables | 438,344,000 | 379,432,000 | |||
Non-Accrual Loans | [1] | 49,000 | 123,000 | ||
Farmland [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,555,000 | 0 | |||
Current | 149,986,000 | 140,516,000 | |||
Total Financing Receivables | 151,541,000 | 140,516,000 | |||
Non-Accrual Loans | [1] | 1,642,000 | 293,000 | ||
Agricultural [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Current | 49,103,000 | 46,796,000 | |||
Total Financing Receivables | 49,103,000 | 46,796,000 | |||
Non-Accrual Loans | [1] | 0 | 0 | ||
Commercial And Industrial Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 2,536,000 | 2,398,000 | |||
Current | 125,684,000 | 133,264,000 | |||
Total Financing Receivables | 128,220,000 | 135,662,000 | |||
Non-Accrual Loans | [1] | 1,425,000 | 1,301,000 | ||
Mortgage warehouse lines [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Current | 91,813,000 | 138,020,000 | |||
Total Financing Receivables | 91,813,000 | 138,020,000 | |||
Non-Accrual Loans | [1] | 0 | 0 | ||
Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 196,000 | 267,000 | |||
Current | 8,666,000 | 10,359,000 | |||
Total Financing Receivables | 8,862,000 | 10,626,000 | |||
Non-Accrual Loans | [1] | 146,000 | 140,000 | ||
30-59 Days Past Due [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 5,449,000 | 2,768,000 | |||
30-59 Days Past Due [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 3,787,000 | 1,881,000 | |||
30-59 Days Past Due [Member] | 1-4 family residential construction [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
30-59 Days Past Due [Member] | Other construction/land [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 210,000 | 20,000 | |||
30-59 Days Past Due [Member] | 1-4 Family - closed-end [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 319,000 | 125,000 | |||
30-59 Days Past Due [Member] | Equity lines [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,471,000 | 466,000 | |||
30-59 Days Past Due [Member] | Multi Family Residential [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
30-59 Days Past Due [Member] | Commercial Real Estate Owner Occupied [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 183,000 | 1,270,000 | |||
30-59 Days Past Due [Member] | Commercial Real Estate Non Owner Occupied [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 49,000 | 0 | |||
30-59 Days Past Due [Member] | Farmland [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,555,000 | 0 | |||
30-59 Days Past Due [Member] | Agricultural [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
30-59 Days Past Due [Member] | Commercial And Industrial Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,567,000 | 730,000 | |||
30-59 Days Past Due [Member] | Mortgage warehouse lines [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
30-59 Days Past Due [Member] | Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 95,000 | 157,000 | |||
60-89 Days Past Due [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 128,000 | 560,000 | |||
60-89 Days Past Due [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | 1-4 family residential construction [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Other construction/land [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | 1-4 Family - closed-end [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Equity lines [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Multi Family Residential [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Commercial Real Estate Owner Occupied [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Commercial Real Estate Non Owner Occupied [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Farmland [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Agricultural [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Commercial And Industrial Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 83,000 | 496,000 | |||
60-89 Days Past Due [Member] | Mortgage warehouse lines [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 45,000 | 64,000 | |||
90 Days Or More Past Due [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,903,000 | [2] | 2,316,000 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 961,000 | [2] | 1,098,000 | [3] | |
90 Days Or More Past Due [Member] | 1-4 family residential construction [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Other construction/land [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 27,000 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | 1-4 Family - closed-end [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
90 Days Or More Past Due [Member] | 1-4 Family - closed-end [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 775,000 | [2] | 895,000 | [3] | |
90 Days Or More Past Due [Member] | Equity lines [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 57,000 | [2] | 203,000 | [3] | |
90 Days Or More Past Due [Member] | Multi Family Residential [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Commercial Real Estate Owner Occupied [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 102,000 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Commercial Real Estate Non Owner Occupied [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Farmland [Member] | Real Estate Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Agricultural [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Commercial And Industrial Loan [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 886,000 | [2] | 1,172,000 | [3] | |
90 Days Or More Past Due [Member] | Mortgage warehouse lines [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | $ 56,000 | [2] | $ 46,000 | [3] | |
[1] | Included in Total Financing Receivables | ||||
[2] | As of December 31, 2018 there were no loans over 90 days past due and still accruing . | ||||
[3] | As of December 31, 2017 there were no loans over 90 days past due and still accruing. |
Loans and Leases - Past Due F_2
Loans and Leases - Past Due Financing Receivables (Parenthetical) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Past Due And Accruing | $ 7,480,000 | $ 5,644,000 | ||
90 Days Or More Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Past Due And Accruing | 1,903,000 | [1] | 2,316,000 | [2] |
90 Days Or More Past Due [Member] | 1-4 Family - closed-end [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Past Due And Accruing | $ 0 | $ 0 | ||
[1] | As of December 31, 2018 there were no loans over 90 days past due and still accruing . | |||
[2] | As of December 31, 2017 there were no loans over 90 days past due and still accruing. |
Loans and Leases - Impaired Fin
Loans and Leases - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | $ 13,851 | $ 14,452 | |||
With an Allowance Recorded Recorded Investment | [2] | 13,138 | 13,909 | |||
With an Allowance Recorded Related Allowance | 2,008 | 1,153 | ||||
With an Allowance Recorded Average Recorded Investment | 13,821 | 15,802 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 689 | 782 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 3,199 | 2,927 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 2,934 | 2,504 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 3,781 | 3,247 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 4 | 2 | |||
Individually impaired loans Unpaid Principal Balance | [1] | 17,050 | 17,379 | |||
Total impaired loans | [2] | 16,072 | 16,413 | |||
Individually impaired loans Related Allowance | 2,008 | 1,153 | ||||
Individually impaired loans Average Recorded Investment | 17,602 | 19,049 | ||||
Individually impaired loans Interest Income Recognized | 693 | [3] | 784 | [3] | $ 1,041 | |
Impaired Financing Receivable, Unpaid Principal Balance, Total | [1] | 17,050 | 17,379 | |||
Impaired Financing Receivable, Carrying Value, Total | [2] | 16,072 | 16,413 | |||
Purchased Credit Impaired Loans [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Individually impaired loans Unpaid Principal Balance | 103 | 148 | ||||
Total impaired loans | 17 | |||||
Impaired Financing Receivable, Unpaid Principal Balance, Total | 103 | 148 | ||||
Impaired Financing Receivable, Carrying Value, Total | 17 | |||||
Purchased Credit Impaired Loans [Member] | Real Estate Loans [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Individually impaired loans Unpaid Principal Balance | 103 | 148 | ||||
Total impaired loans | 17 | |||||
Impaired Financing Receivable, Unpaid Principal Balance, Total | 103 | 148 | ||||
Impaired Financing Receivable, Carrying Value, Total | 17 | |||||
Agricultural [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 6 | 0 | |||
With an Allowance Recorded Recorded Investment | [2] | 6 | 0 | |||
With an Allowance Recorded Related Allowance | 1 | 0 | ||||
With an Allowance Recorded Average Recorded Investment | 6 | 0 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Commercial And Industrial Loan [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 1,724 | 917 | |||
With an Allowance Recorded Recorded Investment | [2] | 1,534 | 917 | |||
With an Allowance Recorded Related Allowance | 918 | 188 | ||||
With an Allowance Recorded Average Recorded Investment | 1,965 | 1,576 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 40 | 83 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 238 | 1,158 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 211 | 1,147 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 838 | 1,433 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Consumer Loans [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 813 | 1,210 | |||
With an Allowance Recorded Recorded Investment | [2] | 764 | 1,201 | |||
With an Allowance Recorded Related Allowance | 151 | 237 | ||||
With an Allowance Recorded Average Recorded Investment | 909 | 1,433 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 61 | 96 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 182 | 230 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 56 | 76 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 273 | 317 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 1 | 0 | |||
Real Estate Loan [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 11,308 | 12,325 | |||
With an Allowance Recorded Recorded Investment | [2] | 10,834 | 11,791 | |||
With an Allowance Recorded Related Allowance | 938 | 728 | ||||
With an Allowance Recorded Average Recorded Investment | 10,941 | 12,793 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 588 | 603 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 2,779 | 1,539 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 2,667 | 1,281 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 2,670 | 1,497 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 3 | 2 | |||
Real Estate Loan [Member] | 1-4 family residential construction [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With an Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With an Allowance Recorded Related Allowance | 0 | 0 | ||||
With an Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Loan [Member] | Other construction/land [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 593 | 678 | |||
With an Allowance Recorded Recorded Investment | [2] | 438 | 523 | |||
With an Allowance Recorded Related Allowance | 44 | 30 | ||||
With an Allowance Recorded Average Recorded Investment | 648 | 768 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 40 | 44 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 54 | 28 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 50 | 28 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 58 | 34 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Loan [Member] | 1-4 Family - closed-end [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 3,325 | 4,061 | |||
With an Allowance Recorded Recorded Investment | [2] | 3,325 | 4,054 | |||
With an Allowance Recorded Related Allowance | 75 | 109 | ||||
With an Allowance Recorded Average Recorded Investment | 3,182 | 4,042 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 175 | 226 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 357 | 885 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 307 | 665 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 375 | 746 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 3 | 2 | |||
Real Estate Loan [Member] | Equity lines [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 4,603 | 4,546 | |||
With an Allowance Recorded Recorded Investment | [2] | 4,550 | 4,446 | |||
With an Allowance Recorded Related Allowance | 656 | 405 | ||||
With an Allowance Recorded Average Recorded Investment | 4,368 | 4,711 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 206 | 154 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 224 | 206 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 166 | 178 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 221 | 208 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Loan [Member] | Multi Family Residential [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 373 | 390 | |||
With an Allowance Recorded Recorded Investment | [2] | 373 | 391 | |||
With an Allowance Recorded Related Allowance | 25 | 29 | ||||
With an Allowance Recorded Average Recorded Investment | 359 | 410 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 20 | 24 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Loan [Member] | Commercial Real Estate Owner Occupied [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 842 | 926 | |||
With an Allowance Recorded Recorded Investment | [2] | 723 | 801 | |||
With an Allowance Recorded Related Allowance | 135 | 151 | ||||
With an Allowance Recorded Average Recorded Investment | 740 | 948 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 40 | 44 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 502 | 117 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 502 | 117 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 478 | 157 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Loan [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 1,572 | 1,724 | |||
With an Allowance Recorded Recorded Investment | [2] | 1,425 | 1,576 | |||
With an Allowance Recorded Related Allowance | 3 | 4 | ||||
With an Allowance Recorded Average Recorded Investment | 1,644 | 1,914 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 107 | 111 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 0 | 10 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 0 | 25 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Loan [Member] | Farmland [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With an Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With an Allowance Recorded Related Allowance | 0 | 0 | ||||
With an Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 1,642 | 293 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 1,642 | 293 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 1,538 | 327 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | $ 0 | $ 0 | |||
[1] | Contractual principal balance due from customer. | |||||
[2] | Principal balance on Company's books, less any direct charge offs. | |||||
[3] | Interest income is recognized on performing balances on a regular accrual basis. |
Loans and Leases (Narrative) (D
Loans and Leases (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Financing Receivable, Modifications [Line Items] | |||||
Additional Commitments To Financing Receivable Modifications Amount | $ 1,834,000 | $ 1,831,000 | |||
Impaired Financing Receivable, Interest Income, Accrual Method, Total | 693,000 | [1] | 784,000 | [1] | $ 1,041,000 |
Interest income recognized on a cash basis on impaired loans | 0 | 0 | 0 | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 804,705,000 | 693,531,000 | |||
Deferred Salaries And Benefits | 4,173,000 | 3,854,000 | 3,430,000 | ||
Allowance for Loan and Lease Losses, Adjustments, Other | 1,048,000 | 957,000 | |||
Servicing Portfolio | 0 | 0 | 72,000 | ||
Purchased Credit Impaired Loans Increase Decrease Allowance For Loan And Lease Losses | 0 | 0 | $ 58,000 | ||
Purchased credit impaired loans acquired | 0 | 0 | |||
Mortgages [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 10,630,000 | 11,410,000 | |||
Commercial And Industrial [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 602,000 | 908,000 | |||
Consumer Loans [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 705,000 | $ 1,158,000 | |||
[1] | Interest income is recognized on performing balances on a regular accrual basis. |
Loans and Leases - Schedule o_2
Loans and Leases - Schedule of Loans and Leases Receivable Impaired Interest Income and Lost from Non Accrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Interest that would have been recorded under the loans' original terms | $ 484 | $ 361 | $ 478 |
Less gross interest recorded | 167 | 103 | 158 |
Foregone interest | $ 317 | $ 258 | $ 320 |
Loans and Leases - Troubled Deb
Loans and Leases - Troubled Debt Restructurings, by Type of Loan Modification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | $ 1,304 | $ 1,630 |
Consumer Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 10 | 7 |
Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 7 | 0 |
Commercial And Industrial Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 323 | 15 |
Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 964 | 1,608 |
Real Estate Loans [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Real Estate Loans [Member] | Other Construction Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Real Estate Loans [Member] | One to Four Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 340 |
Real Estate Loans [Member] | Equity Line Of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 964 | 739 |
Real Estate Loans [Member] | Multifamily [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Real Estate Loans [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 529 |
Real Estate Loans [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Consumer Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Commercial And Industrial Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Loans [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Loans [Member] | Other Construction Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Loans [Member] | One to Four Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Loans [Member] | Equity Line Of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Loans [Member] | Multifamily [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Loans [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Loans [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 540 | 1,194 |
Troubled Debt Restructurings Term Modifications [Member] | Consumer Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 7 |
Troubled Debt Restructurings Term Modifications [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 7 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Commercial And Industrial Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 73 | 15 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 460 | 1,172 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Loans [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Loans [Member] | Other Construction Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Loans [Member] | One to Four Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Loans [Member] | Equity Line Of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 460 | 643 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Loans [Member] | Multifamily [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Loans [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 529 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Loans [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 539 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Consumer Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 10 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Commercial And Industrial Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 25 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 504 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Loans [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Loans [Member] | Other Construction Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Loans [Member] | One to Four Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Loans [Member] | Equity Line Of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 504 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Loans [Member] | Multifamily [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Loans [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Loans [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 225 | 436 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Consumer Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Commercial And Industrial Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 225 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 436 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Loans [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Loans [Member] | Other Construction Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Loans [Member] | One to Four Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 340 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Loans [Member] | Equity Line Of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 96 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Loans [Member] | Multifamily [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Loans [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Loans [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | $ 0 | $ 0 |
Loans and Leases - Schedule o_3
Loans and Leases - Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Number | Dec. 31, 2017USD ($)Number | ||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 1,304 | $ 1,630 | |
Post-Modification Outstanding Recorded Investment | 1,304 | 1,630 | |
Reserve Difference | [1] | $ 6 | $ 117 |
Consumer Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 10 | $ 7 | |
Post-Modification Outstanding Recorded Investment | 10 | 7 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Agricultural [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 1 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 7 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 7 | 0 | |
Reserve Difference | [1] | $ 2 | $ 0 |
Commercial And Industrial Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 4 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 323 | $ 15 | |
Post-Modification Outstanding Recorded Investment | 323 | 15 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 964 | $ 1,608 | |
Post-Modification Outstanding Recorded Investment | 964 | 1,608 | |
Reserve Difference | [1] | $ 4 | $ 117 |
Real Estate Loans [Member] | Farmland [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Loans [Member] | 1-4 Family - closed-end [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 0 | 6 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 340 | |
Post-Modification Outstanding Recorded Investment | 0 | 340 | |
Reserve Difference | [1] | $ 0 | $ 32 |
Real Estate Loans [Member] | Equity Line Of Credit [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 8 | 7 | |
Pre-Modification Outstanding Recorded Investment | $ 964 | $ 739 | |
Post-Modification Outstanding Recorded Investment | 964 | 739 | |
Reserve Difference | [1] | $ 4 | $ 85 |
Real Estate Loans [Member] | Multifamily [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Loans [Member] | Commercial real estate owner occupied [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 0 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 529 | |
Post-Modification Outstanding Recorded Investment | 0 | 529 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Loans [Member] | Commercial Real Estate Non Owner Occupied [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Loans [Member] | Other construction/Land [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Number | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
[1] | This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. |
Premises and Equipment - Proper
Premises and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 61,311 | $ 59,428 |
Less accumulated depreciation and amortization | 32,712 | 30,375 |
Construction in progress | 901 | 335 |
Property, Plant and Equipment, Net, Total | 29,500 | 29,388 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 5,751 | 5,261 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 21,579 | 20,255 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 18,958 | 18,899 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 15,023 | $ 15,013 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 3,174,000 | $ 3,030,000 | $ 2,584,000 |
Rental expense included in occupancy and equipment expense | $ 2,257,000 | 2,482,000 | 1,623,000 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 10 years | ||
Occupancy and Equipment Expense [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 2,995,000 | $ 2,852,000 | $ 2,524,000 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Rent Commitments, Before Considering Renewal Options (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases Operating [Abstract] | |
2019 | $ 2,190 |
2020 | 2,204 |
2021 | 1,993 |
2022 | 1,558 |
2023 | 1,119 |
Thereafter | 3,939 |
Total | $ 13,003 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Change in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Balance at January 1 | $ 27,357 | $ 8,268 | $ 6,908 |
Acquired goodwill | 0 | 19,089 | 1,360 |
Impairment | 0 | 0 | 0 |
Balance at December 31 | $ 27,357 | $ 27,357 | $ 8,268 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Details) - Core deposit intangibles [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Acquired intangible assets [Line Items] | ||
Gross Carrying Amount | $ 8,401 | $ 7,160 |
Accumulated Amortization | $ 1,946 | $ 926 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 1,020,000 | $ 508,000 | $ 272,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense for Each of the Next Five Years and Thereafter (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Estimated amortization expense for each of the next five years and thereafter | |
2019 | $ 1,074 |
2020 | 1,074 |
2021 | 1,032 |
2022 | 1,000 |
2023 | 876 |
Thereafter | 1,399 |
Total | $ 6,455 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | ||
Accrued interest receivable | $ 8,587,000 | $ 7,682,000 |
Deferred tax assets | 8,654,000 | 6,527,000 |
Investment in qualified affordable housing projects | 5,905,000 | 8,440,000 |
Investment in limited partnerships | 3,049,000 | 3,138,000 |
Federal Home Loan Bank stock, at cost | 9,894,000 | 9,594,000 |
Other | 14,475,000 | 9,332,000 |
Other Assets | $ 50,564,000 | $ 44,713,000 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets Miscellaneous [Abstract] | ||
Qualified affordable housing projects capital commitment | $ 1,958,000 | |
Federal Home Loan Bank stock, at cost | $ 9,894,000 | $ 9,594,000 |
Deposits - Schedule Of Interest
Deposits - Schedule Of Interest Bearing Deposit Liabilities Domestic By Component (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Interest bearing demand deposits | $ 101,243 | $ 118,533 |
NOW | 434,483 | 405,057 |
Savings | 283,953 | 283,126 |
Money market | 123,807 | 171,611 |
Time, under $250,000 | 262,901 | 175,336 |
Time, $250,000 or more | 247,426 | 199,289 |
Interest-bearing Deposit Liabilities | $ 1,453,813 | $ 1,352,952 |
Deposits - Schedule Of Maturiti
Deposits - Schedule Of Maturities Of Times Deposit (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Deposits [Abstract] | |
2019 | $ 499,067 |
2020 | 6,565 |
2021 | 2,402 |
2022 | 998 |
2023 | 534 |
Thereafter | 761 |
Time Deposits | $ 510,327 |
Deposits - Schedule Of Intere_2
Deposits - Schedule Of Interest Expense Recognized In Interest Bearing Deposit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deposits [Abstract] | |||
Interest bearing demand deposits | $ 364 | $ 417 | $ 399 |
NOW | 478 | 427 | 361 |
Savings | 314 | 258 | 229 |
Money market | 146 | 157 | 80 |
CDAR's | 0 | 0 | 4 |
Time deposits | 5,653 | 2,503 | 1,101 |
Brokered Deposits | 305 | 0 | 0 |
Interest Expense, Deposits | $ 7,260 | $ 3,762 | $ 2,174 |
Other Borrowing Arrangements -
Other Borrowing Arrangements - Schedule of Short-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 23,321 | $ 15,754 |
Amount | 72,459 | 30,050 |
Maximum month-end balance during the year | 74,622 | 71,909 |
Repurchase Agreements [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | 14,332 | 8,514 |
Amount | $ 16,359 | $ 8,150 |
Average interest rate during the year | 0.40% | 0.40% |
Maximum month-end balance during the year | $ 17,672 | $ 11,409 |
Weighted average interest rate | 0.40% | 0.40% |
Overnight Federal Home Loan Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 8,967 | $ 7,074 |
Amount | $ 56,100 | $ 21,900 |
Average interest rate during the year | 2.19% | 0.82% |
Maximum month-end balance during the year | $ 56,100 | $ 55,000 |
Weighted average interest rate | 2.43% | 0.82% |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 22 | $ 166 |
Amount | $ 0 | $ 0 |
Average interest rate during the year | 0.00% | 0.60% |
Maximum month-end balance during the year | $ 850 | $ 5,500 |
Weighted average interest rate | 0.00% | 0.00% |
Other Borrowing Arrangements (N
Other Borrowing Arrangements (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
First mortgage loans under a blanket lien arrangement collateralized | $ 724,210,000 | |
Maximum borrowing capacity | 538,146,000 | |
Remaining borrowing capacity | 464,179,000 | |
Unused lines of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Long-term Line of Credit | 0 | $ 0 |
Unsecured line of credit facility, amount | 80,000,000 | 80,000,000 |
FRB [Member] | ||
Short-term Debt [Line Items] | ||
First mortgage loans under a blanket lien arrangement collateralized | 80,496,000 | |
Maximum borrowing capacity | 64,230,000 | |
Long-term Line of Credit | $ 0 | $ 0 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal (Current) | $ 5,780 | $ 8,456 | $ 11,517 | ||||||||
Effect of tax act | 0 | 2,710 | 0 | ||||||||
Federal (Deferred) | 179 | (828) | (5,325) | ||||||||
Federal | 5,959 | 10,338 | 6,192 | ||||||||
State (Current) | 3,819 | 3,604 | 3,396 | ||||||||
State (Deferred) | 129 | (302) | (788) | ||||||||
State | 3,948 | 3,302 | 2,608 | ||||||||
Income Tax Benefit | $ 2,997 | $ 2,171 | $ 2,643 | $ 2,096 | $ 6,106 | $ 3,158 | $ 2,611 | $ 1,765 | $ 9,907 | $ 13,640 | $ 8,800 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,882 | $ 2,777 |
Foreclosed assets | 704 | 868 |
Deferred compensation | 3,538 | 3,498 |
Accrued reserves | 421 | 416 |
Non accrual loans | 205 | 190 |
Net operating loss carryforward | 2,131 | 2,354 |
Net unrealized loss on securities available-for-sale | 2,798 | 978 |
Other | 3,510 | 3,850 |
Total deferred tax assets | 16,189 | 14,931 |
Deferred tax liabilities: | ||
Premises and equipment | (833) | (1,301) |
Deferred loan costs | (2,656) | (2,344) |
Other | (4,046) | (4,759) |
Total deferred tax liabilities | (7,535) | (8,404) |
Net deferred tax assets | $ 8,654 | $ 6,527 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Corporate income tax rate | 21.00% | ||
Income tax expense related to remeasurement of federal net deferred tax assets | $ 0 | $ 2,710,000 | $ 0 |
Recorded interest or penalties related to uncertain tax positions | 0 | $ 0 | $ 0 |
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 7,041,000 | ||
California [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 7,623,000 | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Corporate income tax rate | 35.00% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense at federal statutory rate | $ 8,313 | $ 11,613 | $ 9,228 | ||||||||
Increase (decrease) resulting from: | |||||||||||
State franchise tax expense, net of federal tax effect | 3,390 | 2,363 | 1,705 | ||||||||
Tax exempt municipal income | (852) | (1,299) | (1,053) | ||||||||
Affordable housing tax credits | (632) | (711) | (685) | ||||||||
Effect of the tax act | 0 | 2,710 | 0 | ||||||||
Excess tax benefit of stock-based compensation | (177) | (248) | 0 | ||||||||
Other | (135) | (788) | (395) | ||||||||
Income Tax Benefit | $ 2,997 | $ 2,171 | $ 2,643 | $ 2,096 | $ 6,106 | $ 3,158 | $ 2,611 | $ 1,765 | $ 9,907 | $ 13,640 | $ 8,800 |
Effective tax rate | 25.00% | 41.10% | 33.40% |
Subordinated Debentures (Narrat
Subordinated Debentures (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2006 | Mar. 31, 2004 | Dec. 31, 2018 | |
Subordinated Debt [Member] | ||||
Subordinated Borrowings [Line Items] | ||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 7,217,000 | $ 15,464,000 | $ 15,464,000 | |
Subordinated Borrowing, Due Date | Dec. 15, 2037 | Sep. 23, 2036 | Mar. 17, 2034 | |
Subordinated Borrowing, Interest Rate | 4.29% | 4.22% | 5.54% | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 1.40% | 2.75% | |
Statutory Trust [Member] | ||||
Subordinated Borrowings [Line Items] | ||||
Trust Preferred Securities Qualified As Tier One Capital | $ 34,767,000 | |||
Sierra Statutory Trust II [Member] | ||||
Subordinated Borrowings [Line Items] | ||||
Floating Rate Capital Trust Pass Through Securities Issued During Period | 15,000 | 15,000 | ||
Floating rate capital trust pass through securities liquidation value per securities | $ 1,000 | $ 1,000 | ||
Proceeds from Issuance of Mandatory Redeemable Capital Securities | $ 15,000,000 | $ 15,000,000 | ||
Coast Bancorp Statutory Trust II [Member] | ||||
Subordinated Borrowings [Line Items] | ||||
Floating Rate Capital Trust Pass Through Securities Issued During Period | 7,000 | |||
Floating rate capital trust pass through securities liquidation value per securities | $ 1,000 | |||
Proceeds from Issuance of Mandatory Redeemable Capital Securities | $ 7,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies [Line Items] | ||
Federal Reserve Bank Reserve Balance | $ 2,674,000 | $ 0 |
Letter of Credit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Advances from Federal Home Loan Banks, Total | 95,446,000 | |
Secure Public Deposits [Member] | ||
Commitments And Contingencies [Line Items] | ||
Advances from Federal Home Loan Banks, Total | 90,000,000 | |
Guarantee Financial Performance [Member] | ||
Commitments And Contingencies [Line Items] | ||
Advances from Federal Home Loan Banks, Total | $ 5,446,000 | |
Commercial Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration Risk, Percentage | 84.00% | |
Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration Risk, Percentage | 58.00% | |
Residential Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration Risk, Percentage | 31.00% | |
Farmland [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
Commitments and Contingencies -
Commitments and Contingencies - Financial Instruments Representing Off-Balance-Sheet Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed Rate Commitments to Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 96,648 | $ 89,842 |
Variable Rate Commitments To Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 685,339 | 601,870 |
Standby Letters of Credit [Member] | ||
Other Commitments [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 8,966 | $ 9,168 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class Of Stock [Line Items] | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 478,954 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options outstanding | 453,000 | 455,000 | 467,000 | 500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 10 months 24 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 10 months 28 days | |||
Stock Issued During Period Shares Stock Option Exercised | 77,000 | 70,000 | 49,000 | |
Stock Issued During Period, Value, Stock Options Exercised | $ 1,131,000 | $ 764,000 | $ 649,000 | |
Allocated Share-based Compensation Expense | 373,000 | 476,000 | 188,000 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 227,000 | $ 141,000 | $ 43,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 144,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | |||
Stock Options [Member] | ||||
Class Of Stock [Line Items] | ||||
Shares of common stock were not considered in computing diluted earnings per common share | 157,532 | 90,000 | 466,520 | |
Share Repurchase Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | 0 | |||
2007 Stock Option Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options outstanding | 370,020 | |||
Percentage of Share Based Compensation Arrangement by Share Based Payment Award Options Exercise Price to Fair Market Value | 100.00% | |||
2017 Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 850,000 | |||
Number of shares remained available for grant | 767,000 | |||
Percentage of Share Based Compensation Arrangement by Share Based Payment Award Options Exercise Price to Fair Market Value | 100.00% | |||
Stock Issued During Period Shares Stock Option Exercised | 77,100 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 1,131,000 | |||
Deferred Tax Expense from Stock Options Exercised | $ 264,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic Earnings Per Share | |||||||||||
Net income (dollars in thousands) | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | $ 4,044 | $ 5,742 | $ 5,202 | $ 4,551 | $ 29,677 | $ 19,539 | $ 17,567 |
Weighted average shares outstanding | 15,261,794 | 14,172,196 | 13,530,293 | ||||||||
Basic earnings per share | $ 1.94 | $ 1.38 | $ 1.30 | ||||||||
Diluted Earnings Per Share | |||||||||||
Net income (dollars in thousands) | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | $ 4,044 | $ 5,742 | $ 5,202 | $ 4,551 | $ 29,677 | $ 19,539 | $ 17,567 |
Weighted average shares outstanding | 15,261,794 | 14,172,196 | 13,530,293 | ||||||||
Effect of dilutive stock options | 170,326 | 185,586 | 121,511 | ||||||||
Weighted average shares outstanding | 15,432,120 | 14,357,782 | 13,651,804 | ||||||||
Diluted earnings per share | $ 0.51 | $ 0.46 | $ 0.52 | $ 0.44 | $ 0.26 | $ 0.41 | $ 0.37 | $ 0.32 | $ 1.92 | $ 1.36 | $ 1.29 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Share-based Compensation, Stock Options, Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Stockholders Equity Note [Abstract] | ||||
Outstanding, beginning of year | 455 | 467 | 500 | |
Exercised, Shares | (77) | (70) | (49) | |
Granted, Shares | 84 | 91 | 71 | |
Canceled, Shares | (9) | (33) | (55) | |
Outstanding Shares, end of year | 453 | 455 | 467 | |
Exercisable Shares, end of year | [1] | 330 | 400 | 412 |
Outstanding, beginning of year, Weighted Average Exercise Price | $ 16.33 | $ 14.12 | $ 14.83 | |
Exercised, Weighted Average Exercise Price | 14.67 | 12.42 | 11.16 | |
Granted, Weighted Average Exercise Price | 27.35 | 28.21 | 17.25 | |
Canceled, Weighted Average Exercise Price | 26.73 | 26.41 | 27.17 | |
Outstanding, end of year, Weighted Average Exercise Price | 18.45 | 16.33 | 14.12 | |
Exercisable, end of year, Weighted Average Exercise Price | [1] | $ 15.77 | $ 15.57 | $ 13.99 |
Outstanding, end of year, Aggregate Intrinsic vaue | [2] | $ 3,009 | ||
Exercisable, end of year, Aggregate Intrinsic value | [1],[2] | $ 2,868 | ||
[1] | The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2018 was 5.90 years and 4.91 years, respectively. | |||
[2] | The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2018. This amount changes based on changes in the market value of the Company's stock. |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Options Indexed to Issuer Equity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders Equity Note [Abstract] | |||
Weighted-average grant-date fair value per share | $ 5.94 | $ 6.13 | $ 2.85 |
Total intrinsic value of stock options exercised | $ 988,000 | $ 1,042,000 | $ 407,000 |
Total fair value of stock options vested | $ 55,000 | $ 494,000 | $ 269,000 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2015 | |
Banking And Thrift [Line Items] | ||
Permitted Assets Value Requirement to Continue Include Trust Preferred Securities In Tier One Capital | $ 15,000,000,000 | |
Regulatory Restrictions on Payment of Dividends | If a California corporation does not have sufficient retained earnings available for the proposed dividend, it may still pay a dividend to its shareholders if immediately after the dividend the value of the company’s assets would equal or exceed the sum of its total liabilities plus any preferred dividend arrears amount. | |
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements | $ 30,428,000 | |
Statutory Trust [Member] | ||
Banking And Thrift [Line Items] | ||
Excess Capital to Risk Weighted Assets | 1.875% | |
Percentage Of Trust Preferred Securities To Tier One Capital | 25.00% | |
Statutory Trust [Member] | Maximum [Member] | ||
Banking And Thrift [Line Items] | ||
Excess Capital to Risk Weighted Assets | 2.50% | |
Statutory Trust [Member] | Minimum [Member] | ||
Banking And Thrift [Line Items] | ||
Excess Capital to Risk Weighted Assets | 0.00% |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Sierra Bancorp And Subsidiary [Member] | ||
Leverage Ratio | ||
Sierra Bancorp and subsidiary | $ 282,484 | $ 261,987 |
Minimum requirement for "Well-Capitalized" institutions | 122,962 | 115,764 |
Minimum regulatory requirement | $ 98,370 | $ 92,611 |
Bank of the Sierra | 11.49% | 11.32% |
Minimum requirement for "Well-Capitalized" institutions | 5.00% | 5.00% |
Minimum regulatory requirement | 4.00% | 4.00% |
Common Equity Tier 1 Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 247,717 | $ 227,399 |
Minimum requirements for "Well-Capitalized" institutions | 127,709 | 115,149 |
Minimum regulatory requirement | $ 88,414 | $ 79,718 |
Bank of the Sierra | 12.61% | 12.84% |
Minimum requirements for "Well-Capitalized" institutions | 6.50% | 6.50% |
Minimum regulatory requirement | 4.50% | 4.50% |
Tier 1 Risk-Based Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 282,484 | $ 261,987 |
Minimum requirement for "Well-Capitalized" institutions | 157,181 | 141,722 |
Minimum regulatory requirement | $ 117,885 | $ 106,291 |
Bank of the Sierra | 14.38% | 14.79% |
Minimum requirement for "Well-Capitalized" institutions | 8.00% | 8.00% |
Minimum regulatory requirement | 6.00% | 6.00% |
Total Risk-Based Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 292,618 | $ 271,364 |
Minimum requirement for "Well-Capitalized" institutions | 196,476 | 177,152 |
Minimum regulatory requirement | $ 157,181 | $ 141,722 |
Bank of the Sierra | 14.89% | 15.32% |
Minimum requirement for "Well-Capitalized" institutions | 10.00% | 10.00% |
Minimum regulatory requirement | 8.00% | 8.00% |
Bank Of Sierra [Member] | ||
Leverage Ratio | ||
Sierra Bancorp and subsidiary | $ 280,184 | $ 257,087 |
Minimum requirement for "Well-Capitalized" institutions | 140,092 | 115,399 |
Minimum regulatory requirement | $ 98,364 | $ 92,320 |
Bank of the Sierra | 11.39% | 11.14% |
Minimum requirement for "Well-Capitalized" institutions | 5.00% | 5.00% |
Minimum regulatory requirement | 4.00% | 4.00% |
Common Equity Tier 1 Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 280,184 | $ 257,085 |
Minimum requirements for "Well-Capitalized" institutions | 127,776 | 115,141 |
Minimum regulatory requirement | $ 88,461 | $ 79,713 |
Bank of the Sierra | 14.25% | 14.51% |
Minimum requirements for "Well-Capitalized" institutions | 6.50% | 6.50% |
Minimum regulatory requirement | 4.50% | 4.50% |
Tier 1 Risk-Based Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 280,184 | $ 257,085 |
Minimum requirement for "Well-Capitalized" institutions | 157,263 | 141,712 |
Minimum regulatory requirement | $ 117,947 | $ 106,284 |
Bank of the Sierra | 14.25% | 14.51% |
Minimum requirement for "Well-Capitalized" institutions | 8.00% | 8.00% |
Minimum regulatory requirement | 6.00% | 6.00% |
Total Risk-Based Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 290,318 | $ 266,463 |
Minimum requirement for "Well-Capitalized" institutions | 196,579 | 177,140 |
Minimum regulatory requirement | $ 157,263 | $ 141,712 |
Bank of the Sierra | 14.77% | 15.04% |
Minimum requirement for "Well-Capitalized" institutions | 10.00% | 10.00% |
Minimum regulatory requirement | 8.00% | 8.00% |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan annual benefit after retirement or death period | 15 years | ||
Pension and other postretirement benefit contributions, Total | $ 5,229,000 | $ 5,150,000 | |
Pension and other postretirement benefit expense, Total | 375,000 | 325,000 | $ 141,000 |
Defined benefit plan, Benefits paid | $ 296,000 | $ 254,000 | $ 275,000 |
Percentage Of Salary Deferred For Tax Deferred Savings Plan Maximum | 15.00% | ||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 6.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 75.00% | 75.00% | 75.00% |
Defined contribution plan employer matching contribution vesting period | 5 years | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 934,000 | $ 745,000 | $ 623,000 |
Premium Life Insurance Policies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash Surrender Value of Life Insurance | 41,561,000 | 40,588,000 | |
Deferred Compensation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash Surrender Value of Life Insurance | $ 6,592,000 | $ 6,520,000 |
Non-interest Revenue - Schedule
Non-interest Revenue - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Included in other income: | ||||||
Amortization of limited partnerships | $ (2,561) | $ (961) | $ (944) | |||
Dividends on equity investments | 961 | [1] | 761 | [1] | 1,007 | |
Unrealized gains recognized on equity investments | [1] | 1,183 | 0 | |||
Other | 3,071 | 3,651 | 3,338 | |||
Total other non-interest income | $ 2,654 | $ 3,451 | $ 3,401 | |||
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Other Non-interest Expense - Sc
Other Non-interest Expense - Schedule of Other Operating Cost and Expense, by Component (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | $ 23,147 | $ 22,120 | $ 20,424 |
Legal, audit and professional [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 3,032 | 3,289 | 2,530 |
Data processing [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 5,015 | 4,365 | 3,607 |
Advertising and promotion [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 2,748 | 2,514 | 2,386 |
Deposit services [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 5,413 | 4,426 | 3,737 |
Stationery and supplies [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 1,387 | 1,309 | 1,425 |
Telephone and data communication [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 1,479 | 1,654 | 1,552 |
Loan and credit card processing [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 1,142 | 1,029 | 635 |
Foreclosed assets (income) expense, net [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | (730) | 270 | 657 |
Postage [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 997 | 1,064 | 997 |
Other [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | 1,808 | 1,691 | 1,757 |
Assessments [Member] | |||
Components Of Other Expenses [Line Items] | |||
Total other non-interest expense | $ 856 | $ 509 | $ 1,141 |
Related Party Transactions - Su
Related Party Transactions - Summary of the Aggregate Activity Involving Related Party Borrowers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Balance, beginning of year | $ 3,047 | $ 2,253 | $ 2,784 |
Disbursements | 13,873 | 15,223 | 16,939 |
Amounts repaid | (14,376) | (14,429) | (17,470) |
Balance, end of year | 2,544 | 3,047 | 2,253 |
Undisbursed commitments to related parties | $ 2,130 | $ 2,559 | $ 2,559 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transactions [Abstract] | ||
Deposit From Related Party | $ 5,069,000 | $ 7,742,000 |
Fair Value - Assets And Liabili
Fair Value - Assets And Liabilities Measured at Fair Value On a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 560,479 | $ 558,329 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 560,479 | 558,329 |
Other-than-temporary impairment losses on equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 560,479 | 558,329 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 140,534 | 143,201 |
Other-than-temporary impairment losses on equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | State and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | State and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 140,534 | 143,201 |
Fair Value, Measurements, Recurring [Member] | State and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 15,212 | 21,326 |
Other-than-temporary impairment losses on equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 15,212 | 21,326 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agencies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 404,733 | 393,802 |
Other-than-temporary impairment losses on equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 404,733 | 393,802 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value - Assets And Liabi_2
Fair Value - Assets And Liabilities Measured At Fair Market Value On a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | [1] | $ 16,072 | $ 16,413 |
Foreclosed assets | 1,082 | 5,481 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 205 | 377 | |
Foreclosed assets | 1,082 | 5,481 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 0 | 0 | |
Foreclosed assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 205 | 377 | |
Foreclosed assets | 1,082 | 5,481 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 0 | 0 | |
Foreclosed assets | $ 0 | $ 0 | |
[1] | Principal balance on Company's books, less any direct charge offs. |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments - Carrying Amount And Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Fair Value | $ 560,479 | $ 558,329 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 74,132 | 70,137 |
Fair Value | 560,479 | 558,329 |
Loans and leases held for investment | 1,724,575 | 1,551,174 |
Collateral dependent impaired loans | 205 | 377 |
Deposits: | ||
Non-interest-bearing | 662,527 | 635,434 |
Interest-bearing | 1,453,813 | 1,352,952 |
Fed funds purchased and repurchase agreements | 16,359 | 8,150 |
Short-term borrowings | 56,100 | 21,900 |
Subordinated debentures | 34,767 | 34,588 |
Fair Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 74,132 | 70,137 |
Fair Value | 560,479 | 558,329 |
Loans and leases held for investment | 1,707,463 | 1,563,765 |
Collateral dependent impaired loans | 205 | 377 |
Deposits: | ||
Non-interest-bearing | 662,527 | 635,434 |
Interest-bearing | 1,453,048 | 1,352,952 |
Fed funds purchased and repurchase agreements | 16,359 | 8,150 |
Short-term borrowings | 56,100 | 21,900 |
Subordinated debentures | 30,311 | 24,216 |
Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 74,132 | 70,137 |
Fair Value | 0 | 0 |
Loans and leases held for investment | 0 | 0 |
Collateral dependent impaired loans | 0 | 0 |
Deposits: | ||
Non-interest-bearing | 662,527 | 635,434 |
Interest-bearing | 0 | 0 |
Fed funds purchased and repurchase agreements | 0 | 0 |
Short-term borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | 560,479 | 558,329 |
Loans and leases held for investment | 1,707,463 | 1,563,765 |
Collateral dependent impaired loans | 205 | 377 |
Deposits: | ||
Non-interest-bearing | 0 | 0 |
Interest-bearing | 1,453,048 | 1,352,952 |
Fed funds purchased and repurchase agreements | 16,359 | 8,150 |
Short-term borrowings | 56,100 | 21,900 |
Subordinated debentures | 30,311 | 24,216 |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | 0 | 0 |
Loans and leases held for investment | 0 | 0 |
Collateral dependent impaired loans | 0 | 0 |
Deposits: | ||
Non-interest-bearing | 0 | 0 |
Interest-bearing | 0 | 0 |
Fed funds purchased and repurchase agreements | 0 | 0 |
Short-term borrowings | 0 | 0 |
Subordinated debentures | $ 0 | $ 0 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments - Off-balance-sheet financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments to Extend Credit [Member] | ||
Off-balance-sheet financial instruments: | ||
Notional Amount | $ 781,987 | $ 691,712 |
Standby Letters of Credit [Member] | ||
Off-balance-sheet financial instruments: | ||
Notional Amount | $ 8,966 | $ 9,168 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) | Nov. 03, 2017 | Oct. 01, 2017 | Jul. 08, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||
Business combination, Acquisition related costs | $ 449,000 | $ 2,225,000 | $ 2,411,000 | ||||
Goodwill | 27,357,000 | 27,357,000 | 8,268,000 | $ 6,908,000 | |||
Purchased Credit Impaired Loans [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Accretable yield | 0 | ||||||
Allowance for loan losses | 0 | ||||||
Ojai Community Bancorp [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition date | Oct. 1, 2017 | ||||||
Business acquisition, Percentage of voting interests acquired | 100.00% | ||||||
Payments to acquire businesses, Gross | $ 809,000 | ||||||
Business acquisition, Equity interest issued or issuable, Number of shares | 1,376,431 | ||||||
Business combination, Acquisition related costs | 41,000 | 2,169,000 | |||||
Goodwill | $ 18,464,000 | ||||||
Business combination, Recognized identifiable assets acquired and liabilities assumed, Intangible assets, Other than goodwill, Total | $ 3,453,000 | ||||||
Business acquisition, intangible, useful life | 8 years | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Loans Fair Value | $ 217,800,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Loans Gross Contractual Amounts Receivable | 223,036,000 | ||||||
Allowance for loan losses | 0 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | $ 741,000 | ||||||
Woodlake Branch of Citizen's Business Bank [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition date | Nov. 3, 2017 | ||||||
Payments to acquire businesses, Gross | $ 0 | ||||||
Business combination, Acquisition related costs | $ 2,000 | 47,000 | |||||
Goodwill | 625,000 | ||||||
Business combination, Recognized identifiable assets acquired and liabilities assumed, Intangible assets, Other than goodwill, Total | $ 486,000 | ||||||
Business acquisition, intangible, useful life | 8 years | ||||||
Coast National Bancorp [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition date | Jul. 8, 2016 | ||||||
Business acquisition, Percentage of voting interests acquired | 100.00% | ||||||
Payments to acquire businesses, Gross | $ 3,280,000 | ||||||
Business acquisition, Equity interest issued or issuable, Number of shares | 599,226 | ||||||
Business combination, Acquisition related costs | $ 9,000 | $ 2,411,000 | |||||
Goodwill | $ 1,360,000 | ||||||
Business combination, Recognized identifiable assets acquired and liabilities assumed, Intangible assets, Other than goodwill, Total | $ 1,827,000 | ||||||
Business acquisition, intangible, useful life | 8 years |
Business Combinations - Summary
Business Combinations - Summary of Consideration Paid And Amounts of Assets Acquired And Liabilities Assumed (Details) - USD ($) | Nov. 03, 2017 | Oct. 01, 2017 | Jul. 08, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Goodwill | $ 27,357,000 | $ 27,357,000 | $ 8,268,000 | $ 6,908,000 | |||
Ojai Community Bancorp [Member] | |||||||
Consideration | |||||||
Cash | $ 809,000 | ||||||
Equity Instruments | 37,370,000 | ||||||
Fair value of total consideration transferred | 38,179,000 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Cash and cash equivalents | 37,108,000 | ||||||
Securities | 5,492,000 | ||||||
Federal Home Loan Bank stock | 0 | ||||||
Loans | 217,800,000 | ||||||
Premises and equipment | 873,000 | ||||||
Real estate owned | 3,072,000 | ||||||
Core deposit intangibles | 3,453,000 | ||||||
Other assets | 10,479,000 | ||||||
Total assets acquired | 278,277,000 | ||||||
Deposits | 230,950,000 | ||||||
Borrowed funds | 24,400,000 | ||||||
Other liabilities | 3,212,000 | ||||||
Total liabilities assumed | 258,562,000 | ||||||
Total identifiable net assets | 19,715,000 | ||||||
Goodwill | 18,464,000 | ||||||
Fair value of total consideration transferred | $ 38,179,000 | ||||||
Woodlake Branch of Citizen's Business Bank [Member] | |||||||
Consideration | |||||||
Cash | $ 0 | ||||||
Equity Instruments | 0 | ||||||
Fair value of total consideration transferred | 0 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Cash and cash equivalents | 25,266,000 | ||||||
Loans | 7,000 | ||||||
Premises and equipment | 469,000 | ||||||
Core deposit intangibles | 486,000 | ||||||
Total assets acquired | 26,228,000 | ||||||
Deposits | 26,661,000 | ||||||
Other liabilities | 192,000 | ||||||
Total liabilities assumed | 26,853,000 | ||||||
Total identifiable net assets | (625,000) | ||||||
Goodwill | 625,000 | ||||||
Fair value of total consideration transferred | $ 0 | ||||||
Coast National Bancorp [Member] | |||||||
Consideration | |||||||
Cash | $ 3,280,000 | ||||||
Equity Instruments | 10,205,000 | ||||||
Fair value of total consideration transferred | 13,485,000 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Cash and cash equivalents | 18,931,000 | ||||||
Securities | 23,363,000 | ||||||
Federal Home Loan Bank stock | 561,000 | ||||||
Federal Reserve Bank stock | 496,000 | ||||||
Loans | 94,264,000 | ||||||
Premises and equipment | 5,844,000 | ||||||
Core deposit intangibles | 1,827,000 | ||||||
Other assets | 2,504,000 | ||||||
Total assets acquired | 147,790,000 | ||||||
Deposits | 129,038,000 | ||||||
Trust preferred securities | 3,422,000 | ||||||
Other liabilities | 3,205,000 | ||||||
Total liabilities assumed | 135,665,000 | ||||||
Total identifiable net assets | 12,125,000 | ||||||
Goodwill | 1,360,000 | ||||||
Fair value of total consideration transferred | $ 13,485,000 |
Business Combinations - Busines
Business Combinations - Business Acquisition, Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pro forma financial information | |||
Net interest income | $ 92,394 | $ 82,985 | $ 65,182 |
Net income | $ 29,677 | $ 19,416 | $ 17,567 |
Basic earnings per share | $ 1.94 | $ 1.37 | $ 1.30 |
Diluted earnings per share | $ 1.92 | $ 1.35 | $ 1.29 |
Qualified Affordable Housing _2
Qualified Affordable Housing Project Investments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Home Loan Banks [Abstract] | |||
Amortization Method Qualified Affordable Housing Project Investments | $ 5,905,000 | $ 8,440,000 | |
Qualified Affordable Housing Project Investments, Commitment | 1,958,000 | 3,321,000 | |
Amortization Method Qualified Affordable Housing Project Investments, Amortization | 2,535,000 | 961,000 | $ 944,000 |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | 632,000 | 711,000 | |
Impairment Loss | $ 0 | $ 0 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Schedule of Sources of Non-interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Non-interest income | ||||||||||||||
Returned item and overdraft fees | $ 6,574 | $ 6,406 | ||||||||||||
Other service charges on deposits | 5,865 | 4,824 | ||||||||||||
Debit card interchange income | 5,878 | 4,955 | ||||||||||||
Loss on limited partnerships | [1] | (2,561) | (961) | |||||||||||
Dividends on equity investments | 961 | [1] | 761 | [1] | $ 1,007 | |||||||||
Unrealized gains recognized on equity investments | [1] | 1,183 | 0 | |||||||||||
Net gains (losses) on sale of securities | 2 | [1] | 500 | [1] | 223 | |||||||||
Other | [1] | 3,662 | 5,294 | |||||||||||
Total non-interest income | $ 5,279 | $ 5,723 | $ 5,429 | $ 5,133 | $ 5,371 | $ 5,910 | $ 5,364 | $ 5,134 | $ 21,564 | $ 21,779 | $ 19,238 | |||
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financi_3
Parent Only Condensed Financial Statements - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and due from banks | $ 72,439 | $ 61,142 | ||
Other assets | 50,564 | 44,713 | ||
Total assets | 2,522,502 | 2,340,298 | ||
Liabilities: | ||||
Other liabilities | 25,912 | 31,332 | ||
Subordinated debentures, net | 34,767 | 34,588 | ||
Total liabilities | 2,249,478 | 2,084,356 | ||
Shareholders' equity | ||||
Common stock | 112,507 | 111,138 | ||
Retained earnings | 164,117 | 144,197 | ||
Accumulated other comprehensive income, net of taxes | (6,666) | (2,330) | ||
Total shareholders' equity | 273,024 | 255,942 | $ 205,878 | $ 190,340 |
Total liabilities and shareholder's equity | 2,522,502 | 2,340,298 | ||
Parent [Member] | ||||
ASSETS | ||||
Cash and due from banks | 2,338 | 4,908 | ||
Other assets | 20 | 24 | ||
Total assets | 308,995 | 291,706 | ||
Liabilities: | ||||
Other liabilities | 1,204 | 1,176 | ||
Subordinated debentures, net | 34,767 | 34,588 | ||
Total liabilities | 35,971 | 35,764 | ||
Shareholders' equity | ||||
Common stock | 115,573 | 114,075 | ||
Retained earnings | 164,117 | 144,197 | ||
Accumulated other comprehensive income, net of taxes | (6,666) | (2,330) | ||
Total shareholders' equity | 273,024 | 255,942 | ||
Total liabilities and shareholder's equity | 308,995 | 291,706 | ||
Parent [Member] | Trust Subsidiaries [Member] | ||||
ASSETS | ||||
Investments in bank subsidiary | 1,145 | 1,145 | ||
Parent [Member] | Subsidiaries [Member] | ||||
ASSETS | ||||
Investments in bank subsidiary | $ 305,492 | $ 285,629 |
Parent Only Condensed Financi_4
Parent Only Condensed Financial Statements - Schedule of Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income: | |||||||||||||
Dividend from subsidiary | $ 0 | $ 16 | $ 40 | ||||||||||
Gain on sale of securities | 2 | [1] | 500 | [1] | 223 | ||||||||
Expense | |||||||||||||
Salaries and employee benefits | 36,133 | 31,506 | 27,452 | ||||||||||
Income before income taxes | $ 10,901 | $ 9,242 | $ 10,635 | $ 8,806 | $ 10,150 | $ 8,900 | $ 7,813 | $ 6,316 | 39,584 | 33,179 | 26,367 | ||
Provision for income taxes | $ 2,997 | $ 2,171 | $ 2,643 | $ 2,096 | $ 6,106 | $ 3,158 | $ 2,611 | $ 1,765 | 9,907 | 13,640 | 8,800 | ||
Comprehensive income | 25,341 | 19,382 | 13,261 | ||||||||||
Parent [Member] | |||||||||||||
Income: | |||||||||||||
Dividend from subsidiary | 7,750 | 15,500 | 16,500 | ||||||||||
Gain on sale of securities | 0 | 918 | 58 | ||||||||||
Other operating income | 0 | 16 | 3 | ||||||||||
Total income | 7,750 | 16,434 | 16,561 | ||||||||||
Expense | |||||||||||||
Salaries and employee benefits | 516 | 481 | 404 | ||||||||||
Other expenses | 2,533 | 2,276 | 1,857 | ||||||||||
Total expenses | 3,049 | 2,757 | 2,261 | ||||||||||
Income before income taxes | 4,701 | 13,677 | 14,300 | ||||||||||
Provision for income taxes | (1,150) | (1,602) | (926) | ||||||||||
Income before equity in undistributed income of subsidiary | 5,851 | 15,279 | 15,226 | ||||||||||
Equity in undistributed income of subsidiary | 23,826 | 4,260 | 2,341 | ||||||||||
Comprehensive income | $ 29,677 | $ 19,539 | $ 17,567 | ||||||||||
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financi_5
Parent Only Condensed Financial Statements - Schedule of Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | $ 4,044 | $ 5,742 | $ 5,202 | $ 4,551 | $ 29,677 | $ 19,539 | $ 17,567 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Gain on sales of securities | (2) | (500) | (223) | ||||||||
Increase (decrease) in other assets | (6,106) | 10,402 | (3,442) | ||||||||
(Decrease) increase in other liabilities | (5,420) | 4,100 | (621) | ||||||||
Net cash provided by operating activities | 30,446 | 40,679 | 15,581 | ||||||||
Cash flows from investing activities: | |||||||||||
Sales of securities | 12,283 | 47,594 | 39,568 | ||||||||
Net cash used in investing activities | (188,188) | (51,673) | (21,340) | ||||||||
Cash flows from financing activities: | |||||||||||
Stock options exercised | 1,131 | 764 | 543 | ||||||||
Repurchase of common stock | 0 | 0 | (2,259) | ||||||||
Net cash provided by (used in) financing activities | 161,737 | (39,311) | 77,578 | ||||||||
(Decrease) increase in cash and due from banks | 3,995 | (50,305) | 71,819 | ||||||||
Cash and cash equivalents, beginning of year | 70,137 | 120,442 | 70,137 | 120,442 | 48,623 | ||||||
Cash and cash equivalents, end of year | 74,132 | 70,137 | 74,132 | 70,137 | 120,442 | ||||||
Parent [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 29,677 | 19,539 | 17,567 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undistributed net loss of subsidiary | (23,826) | (4,260) | (2,341) | ||||||||
Gain on sales of securities | 0 | (918) | (58) | ||||||||
Increase (decrease) in other assets | 182 | 170 | (220) | ||||||||
(Decrease) increase in other liabilities | 28 | (757) | 20 | ||||||||
Net cash provided by operating activities | 6,061 | 13,774 | 14,968 | ||||||||
Cash flows from investing activities: | |||||||||||
Sales of securities | 0 | 1,480 | 170 | ||||||||
Cash paid from acquisitions, net | (6) | (7,061) | (2,994) | ||||||||
Net cash used in investing activities | (6) | (5,581) | (2,824) | ||||||||
Cash flows from financing activities: | |||||||||||
Change in other borrowings | 0 | 0 | (2,365) | ||||||||
Stock options exercised | 1,131 | 764 | 649 | ||||||||
Repurchase of common stock | 0 | 0 | (2,258) | ||||||||
Dividends paid | (9,756) | (7,935) | (6,506) | ||||||||
Net cash provided by (used in) financing activities | (8,625) | (7,171) | (10,480) | ||||||||
(Decrease) increase in cash and due from banks | (2,570) | 1,022 | 1,664 | ||||||||
Cash and cash equivalents, beginning of year | $ 4,908 | $ 3,886 | 4,908 | 3,886 | 2,222 | ||||||
Cash and cash equivalents, end of year | $ 2,338 | $ 4,908 | $ 2,338 | $ 4,908 | $ 3,886 |
Condensed Quarterly Results o_3
Condensed Quarterly Results of Operations - Schedule of Results of Operations Activities Disclosure (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||||||||||
Interest income | $ 27,042 | $ 26,236 | $ 24,883 | $ 23,476 | $ 24,134 | $ 19,832 | $ 19,055 | $ 17,903 | $ 101,638 | $ 80,924 | $ 68,505 |
Interest expense | 2,984 | 2,460 | 2,083 | 1,716 | 1,592 | 1,397 | 1,215 | 1,019 | 9,244 | 5,223 | 3,323 |
Net interest income | 24,058 | 23,776 | 22,800 | 21,760 | 22,542 | 18,435 | 17,840 | 16,884 | 92,394 | 75,701 | 65,182 |
Provision for loan and lease losses | 1,400 | 2,450 | 300 | 200 | (1,440) | 0 | 300 | 0 | 4,350 | (1,140) | 0 |
Non-interest income | 5,279 | 5,723 | 5,429 | 5,133 | 5,371 | 5,910 | 5,364 | 5,134 | 21,564 | 21,779 | 19,238 |
Non-interest expense | 17,036 | 17,807 | 17,294 | 17,887 | 19,203 | 15,445 | 15,091 | 15,702 | 70,024 | 65,441 | 58,053 |
Net income before taxes | 10,901 | 9,242 | 10,635 | 8,806 | 10,150 | 8,900 | 7,813 | 6,316 | 39,584 | 33,179 | 26,367 |
Provision for income taxes | 2,997 | 2,171 | 2,643 | 2,096 | 6,106 | 3,158 | 2,611 | 1,765 | 9,907 | 13,640 | 8,800 |
Net income | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | $ 4,044 | $ 5,742 | $ 5,202 | $ 4,551 | $ 29,677 | $ 19,539 | $ 17,567 |
Diluted earnings per share | $ 0.51 | $ 0.46 | $ 0.52 | $ 0.44 | $ 0.26 | $ 0.41 | $ 0.37 | $ 0.32 | $ 1.92 | $ 1.36 | $ 1.29 |
Cash dividend per share | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 |