Cover Page Cover Page
Cover Page Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 05, 2020 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39123 | |
Entity Registrant Name | SILVERGATE CAPITAL CORPORATION | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 33-0227337 | |
Entity Address, Address Line One | 4250 Executive Square | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | La Jolla | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92037 | |
City Area Code | 858 | |
Local Phone Number | 362-6300 | |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | |
Trading Symbol | SI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Entity Central Index Key | 0001312109 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 18,371,294 | |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 296,836 |
Consolidated Statements Of Fina
Consolidated Statements Of Financial Condition (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 2,778 | $ 1,579 |
Interest earning deposits in other banks | 163,422 | 132,025 |
Cash and cash equivalents | 166,200 | 133,604 |
Securities available-for-sale, at fair value | 964,317 | 897,766 |
Loans held-for-sale, at lower of cost or fair value | 435,023 | 375,922 |
Loans held-for-investment, net of allowance for loan losses of $6,558 and $6,191 at March 31, 2020 and December 31, 2019, respectively | 679,416 | 664,622 |
Federal home loan and federal reserve bank stock, at cost | 10,269 | 10,264 |
Accrued interest receivable | 6,344 | 5,950 |
Other real estate owned, net | 0 | 128 |
Premises and equipment, net | 3,406 | 3,259 |
Operating lease right-of-use assets | 4,210 | 4,571 |
Derivative assets | 33,506 | 23,440 |
Low income housing tax credit investment | 927 | 954 |
Other assets | 7,090 | 7,647 |
Total assets | 2,310,708 | 2,128,127 |
Deposits: | ||
Noninterest bearing demand accounts | 1,745,219 | 1,343,667 |
Interest bearing accounts | 257,738 | 470,987 |
Total deposits | 2,002,957 | 1,814,654 |
Federal home loan bank advances | 30,000 | 49,000 |
Notes payable | 0 | 3,714 |
Subordinated debentures, net | 15,820 | 15,816 |
Operating lease liabilities | 4,515 | 4,881 |
Accrued expenses and other liabilities | 12,664 | 9,026 |
Total liabilities | 2,065,956 | 1,897,091 |
Commitments and contingencies | ||
Preferred stock, $0.01 par value—authorized 10,000 shares; no shares issued or outstanding at March 31, 2020 and December 31, 2019 | 0 | 0 |
Additional paid-in capital | 132,336 | 132,138 |
Retained earnings | 96,703 | 92,310 |
Accumulated other comprehensive income | 15,526 | 6,401 |
Total shareholders’ equity | 244,752 | 231,036 |
Total liabilities and shareholders’ equity | 2,310,708 | 2,128,127 |
Class A common stock, $0.01 par value—authorized 125,000 shares; 18,371 and 17,775 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | ||
Deposits: | ||
Common stock | 184 | 178 |
Class B non-voting common stock, $0.01 par value—authorized 25,000 shares; 297 and 893 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | ||
Deposits: | ||
Common stock | $ 3 | $ 9 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses | $ 6,558 | $ 6,191 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 18,371,000 | 17,775,000 |
Common stock, shares outstanding (in shares) | 18,371,000 | 17,775,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 297,000 | 893,000 |
Common stock, shares outstanding (in shares) | 297,000 | 893,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income | ||
Loans, including fees | $ 13,121 | $ 13,111 |
Taxable securities | 6,048 | 3,033 |
Tax-exempt securities | 48 | 0 |
Other interest earning assets | 724 | 3,797 |
Dividends and other | 121 | 122 |
Total interest income | 20,062 | 20,063 |
Interest expense | ||
Deposits | 4,051 | 341 |
Federal home loan bank advances | 227 | 0 |
Notes payable and other | 36 | 142 |
Subordinated debentures | 270 | 264 |
Total interest expense | 4,584 | 747 |
Net interest income before provision for loan losses | 15,478 | 19,316 |
Provision for loan losses | 367 | 267 |
Net interest income after provision for loan losses | 15,111 | 19,049 |
Noninterest income | ||
Mortgage warehouse fee income | 382 | 366 |
Service fees related to off-balance sheet deposits | 70 | 759 |
Deposit related fees | 1,766 | 987 |
Gain on sale of securities, net | 1,197 | 0 |
Gain on sale of loans, net | 506 | 189 |
Gain on sale of branch, net | 0 | 5,509 |
Gain on extinguishment of debt | 925 | 0 |
Other income | 85 | 61 |
Total noninterest income | 4,931 | 7,871 |
Noninterest expense | ||
Salaries and employee benefits | 8,955 | 8,765 |
Occupancy and equipment | 907 | 873 |
Communications and data processing | 1,261 | 1,037 |
Professional services | 985 | 1,445 |
Federal deposit insurance | 123 | 175 |
Correspondent bank charges | 373 | 279 |
Other loan expense | 122 | 125 |
Other general and administrative | 1,149 | 787 |
Total noninterest expense | 13,875 | 13,486 |
Income before income taxes | 6,167 | 13,434 |
Income tax expense | 1,774 | 3,998 |
Net income | $ 4,393 | $ 9,436 |
Earnings Per Share [Abstract] | ||
Basic earnings per share (in dollars per share) | $ 0.24 | $ 0.53 |
Diluted earnings per share (in dollars per share) | $ 0.23 | $ 0.52 |
Weighted average shares outstanding: | ||
Basic (in shares) | 18,668 | 17,818 |
Diluted (in shares) | 19,117 | 18,258 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,393 | $ 9,436 |
Other comprehensive income (loss): | ||
Change in net unrealized (loss) gain on available-for-sale securities | (9,313) | 663 |
Less: Reclassification adjustment for net gains included in net income | (1,197) | 0 |
Income tax effect | 3,007 | (200) |
Unrealized (loss) gain on available-for-sale securities, net of tax | (7,503) | 463 |
Change in net unrealized gain (loss) on derivative assets | 23,466 | (46) |
Less: Reclassification adjustment for net gains included in net income | (171) | 0 |
Income tax effect | (6,667) | 19 |
Unrealized gain (loss) on derivative instruments, net of tax | 16,628 | (27) |
Other comprehensive income | 9,125 | 436 |
Total comprehensive income | $ 13,518 | $ 9,872 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2018 | $ 191,246 | $ 166 | $ 12 | $ 125,665 | $ 67,464 | $ (2,061) | ||
Beginning balance (in shares) at Dec. 31, 2018 | 16,628,941 | 1,189,548 | ||||||
Total comprehensive income, net of tax | 9,872 | 9,436 | 436 | |||||
Stock-based compensation | 19 | 19 | ||||||
Ending balance at Mar. 31, 2019 | 201,137 | $ 166 | $ 12 | 125,684 | 76,900 | (1,625) | ||
Ending balance (in shares) at Mar. 31, 2019 | 16,628,941 | 1,189,548 | ||||||
Beginning balance at Dec. 31, 2019 | 231,036 | $ 178 | $ 9 | 132,138 | 92,310 | 6,401 | ||
Beginning balance (in shares) at Dec. 31, 2019 | 17,775,000 | 893,000 | 17,775,160 | 892,836 | ||||
Total comprehensive income, net of tax | 13,518 | 4,393 | 9,125 | |||||
Conversion of Class B common stock to Class A common stock (in shares) | 596,000 | (596,000) | ||||||
Conversion of Class B common stock to Class A common stock | 0 | $ 6 | $ (6) | |||||
Stock-based compensation | $ 199 | 199 | ||||||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 1,250 | 134 | 0 | |||||
Exercise of stock options, net of shares withheld for employee taxes | $ (1) | (1) | ||||||
Ending balance at Mar. 31, 2020 | $ 244,752 | $ 184 | $ 3 | $ 132,336 | $ 96,703 | $ 15,526 | ||
Ending balance (in shares) at Mar. 31, 2020 | 18,371,000 | 297,000 | 18,371,294 | 296,836 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 4,393,000 | $ 9,436,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 830,000 | 255,000 |
Amortization of securities premiums and discounts, net | 679,000 | 130,000 |
Amortization of loan premiums and discounts and deferred loan origination fees and costs, net | 399,000 | (102,000) |
Stock-based compensation | 199,000 | 19,000 |
Deferred income tax expense (benefit) | 487,000 | (6,000) |
Provision for loan losses | 367,000 | 267,000 |
Gain on sale of loans, net | (506,000) | (189,000) |
Gain on sale of securities, net | (1,197,000) | 0 |
Originations/purchases of loans held-for-sale | (1,222,816,000) | (622,318,000) |
Proceeds from sales of loans held-for-sale | 1,153,515,000 | 606,240,000 |
Gain on sale of branch, net | 0 | (5,509,000) |
Gain on extinguishment of debt | (925,000) | 0 |
Other, net | (168,000) | 354,000 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable and other assets | (520,000) | (142,000) |
Accrued expenses and other liabilities | 87,000 | 398,000 |
Net cash used in operating activities | (65,176,000) | (11,167,000) |
Cash flows from investing activities | ||
Purchases of securities available-for-sale | (98,986,000) | (110,319,000) |
Proceeds from paydowns and maturities of securities available-for-sale | 7,936,000 | 5,498,000 |
Proceeds from sale of securities available-for-sale | 14,016,000 | 0 |
Loan originations/purchases and payments, net | (41,254,000) | (12,790,000) |
Proceeds from sale of loans held-for-sale previously classified as held-for-investment | 36,400,000 | 11,622,000 |
Purchase of federal home loan and federal reserve bank stock, net | (5,000) | (603,000) |
Proceeds from sale of other real estate owned | 128,000 | 0 |
Purchase of premises and equipment | (391,000) | (435,000) |
Proceeds from sale of branch, net of cash | 0 | 32,555,000 |
Proceeds from (purchases of) derivative contracts, net | 13,370,000 | (2,555,000) |
Other, net | 0 | 2,000 |
Net cash used in investing activities | (68,786,000) | (77,025,000) |
Cash flows from financing activities | ||
Net change in noninterest bearing deposits | 401,552,000 | (86,897,000) |
Net change in interest bearing deposits | (213,250,000) | (22,893,000) |
Net change in federal home loan bank advances | (18,075,000) | 0 |
Net change in other borrowings | 0 | 57,135,000 |
Payments made on notes payable | (3,714,000) | (571,000) |
Taxes paid related to net share settlement of equity awards | (1,000) | 0 |
Other, net | 46,000 | 22,000 |
Net cash provided by (used in) financing activities | 166,558,000 | (53,204,000) |
Net increase (decrease) in cash and cash equivalents | 32,596,000 | (141,396,000) |
Cash and cash equivalents, beginning of year | 133,604,000 | 674,420,000 |
Cash and cash equivalents, end of year | $ 166,200,000 | $ 533,024,000 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Nature of Business and Summary of Significant Accounting Policies Nature of Business The accompanying consolidated financial statements include the accounts of Silvergate Capital Corporation, a Maryland corporation and its wholly-owned subsidiary, Silvergate Bank (the “Bank”), collectively referred to as (the “Company” or “Silvergate”). The Bank was incorporated in 1987 and commenced business in 1988 under the California Financial Code as an industrial bank. In February 2009 the Bank converted its charter to a California commercial bank, which gave it the added authority to accept demand deposits. At the same time, the Company also became a registered bank holding company under the federal Bank Holding Company Act. The Bank became a member of the Federal Reserve System in December 2012. The Bank is subject to regulation by the California Department of Business Oversight (“DBO”), and the Federal Reserve Bank of San Francisco (“FRB”), and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to applicable legal limits. On November 15, 2018, the Company and the Bank entered into a purchase and assumption agreement to sell the Bank’s retail branch located in San Marcos, California and business loan portfolio to HomeStreet Bank. The Company completed the sale in March 2019, which included the reduction of $115.4 million in loans and $74.5 million in deposits and resulted in a pre-tax gain on sale of $5.5 million . Financial Statement Preparation and Presentation The accompanying interim consolidated financial statements have been prepared by the Company, without audit, in accordance with the instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”) and, therefore, do not include all information and footnotes necessary for a fair presentation of its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the Company’s consolidated financial statements as of March 31, 2020, however uncertainty over the ultimate impact that the novel coronavirus disease, (or “COVID-19”) will have on the economy generally, and on the Company’s business in particular, makes any estimates and assumptions as of March 31, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. These consolidated statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K dated March 10, 2020. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiaries. The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s financial statements and the accompanying notes. Actual results could materially differ from those estimates. Recently issued accounting pronouncements not yet effective In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (or “ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (or “CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. These amendments were initially effective for fiscal years beginning after December 15, 2019 for SEC registrants and after December 15, 2020, for Public Business Entities, or PBEs. In November 2019, the FASB issued ASU 2019-10, Financial Instruments-Credit Losses (Topic326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which finalized the delay of the effective date for smaller reporting companies, such as the Company to apply the standards related to CECL, until fiscal years beginning after December 15, 2022. For debt securities with other than temporary impairment (OTTI), the guidance will be applied prospectively and for existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets with the scope of CECL, the cumulative effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The Company formed a CECL implementation committee in 2018 which prepared a project plan to migrate towards the adoption date. As part of the project plan, the Company contracted a third-party vendor to assist in the application and analysis of ASU 2016-13 as well as a third party vendor to perform an independent model validation. As part of this process, the Company has determined preliminary loan pool segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company operationalized an initial CECL model during the second quarter of 2019, and is running this preliminary CECL model alongside the existing incurred loss methodology. The Company intends to continue to refine and run the model until the date of adoption. The Company continues to evaluate the effects of ASU 2016-13 on its financial statements and disclosures and whether or not to early adopt the guidance. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (or “ASU 2020-04”), which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the London Interbank Offered Rate (or “LIBOR”) or other interbank offered rate (reference rates) on financial reporting, which currently is expected to be discontinued by the end of 2021. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The Company is evaluating the impact that ASU 2020-04 will have on those financial assets where LIBOR is used as an index rate. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The fair value of available-for-sale securities and their related gross unrealized gains and losses at the dates indicated are as follows: Available-for-sale securities Amortized Cost Gross Gross Fair Value (Dollars in thousands) March 31, 2020 Residential mortgage-backed securities: Government agency mortgage-backed securities $ 682 $ 34 $ — $ 716 Government agency collateralized mortgage obligation 236,334 709 (863 ) 236,180 Private-label collateralized mortgage obligation 25,844 — (3,462 ) 22,382 Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 364,543 10,913 (806 ) 374,650 Municipal bonds 85,268 7,388 — 92,656 Asset backed securities: Government sponsored student loan pools 256,449 — (18,716 ) 237,733 $ 969,120 $ 19,044 $ (23,847 ) $ 964,317 Available-for-sale securities Amortized Cost Gross Gross Fair Value (Dollars in thousands) December 31, 2019 Residential mortgage-backed securities: Government agency mortgage-backed securities $ 769 $ 32 $ — $ 801 Government agency collateralized mortgage obligation 242,203 552 (837 ) 241,918 Private-label collateralized mortgage obligation 26,346 352 (198 ) 26,500 Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 364,719 12,474 (177 ) 377,016 Asset backed securities: Government sponsored student loan pools 258,022 — (6,491 ) 251,531 $ 892,059 $ 13,410 $ (7,703 ) $ 897,766 There were no investment securities pledged for borrowings or for other purposes as required or permitted by law as of March 31, 2020 and December 31, 2019 . At March 31, 2020 , the total fair value of securities issued by six individual issuers, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity was $343.0 million . Securities with unrealized losses as of the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: Available-for-sale securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) March 31, 2020 Residential mortgage-backed securities: Government agency collateralized mortgage obligation 134,490 (820 ) 4,530 (43 ) 139,020 (863 ) Private-label collateralized mortgage obligation 10,325 (481 ) 12,057 (2,981 ) 22,382 (3,462 ) Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 41,720 (806 ) — — 41,720 (806 ) Asset backed securities: Government sponsored student loan pools 22,615 (1,772 ) 215,117 (16,944 ) 237,732 (18,716 ) $ 209,150 $ (3,879 ) $ 231,704 $ (19,968 ) $ 440,854 $ (23,847 ) Available-for-sale securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) December 31, 2019 Residential mortgage-backed securities: Government agency collateralized mortgage obligation $ 143,633 $ (785 ) $ 15,794 $ (52 ) $ 159,427 $ (837 ) Private-label collateralized mortgage obligation 59 (1 ) 15,168 (197 ) 15,227 (198 ) Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 13,142 (177 ) — — 13,142 (177 ) Asset backed securities: Government sponsored student loan pools 62,938 (1,317 ) 188,593 (5,174 ) 251,531 (6,491 ) $ 219,772 $ (2,280 ) $ 219,555 $ (5,423 ) $ 439,327 $ (7,703 ) As indicated in the tables above, as of March 31, 2020 , the Company’s investment securities had gross unrealized losses totaling approximately $23.8 million , compared to approximately $7.7 million at December 31, 2019 . The Company analyzed all of its securities with an unrealized loss position. For each security, the Company analyzed the credit quality and performed a projected cash flow analysis. In analyzing the credit quality, management may consider whether the securities are issued by the federal government, its agencies or its sponsored entities, or non-governmental entities, whether downgrades by bond rating agencies have occurred, and if credit quality has deteriorated. When performing a cash flow analysis the Company uses models that project prepayments, default rates, and loss severities on the collateral supporting the security, based on underlying loan level borrower and loan characteristics and interest rate assumptions. In addition, the Company has contracted with third party companies to perform independent cash flow analyses of its securities portfolio as needed. Based on these analyses and reviews conducted by the Company, and assisted by independent third parties, the Company determined that none of its securities required an other-than-temporary impairment charge at March 31, 2020 or December 31, 2019 . Management continues to expect to recover the adjusted amortized cost basis of these bonds. As of March 31, 2020 , the Company had 33 securities whose estimated fair value declined 5.13% from the Company’s amortized cost; at December 31, 2019 , the Company had 33 securities whose estimated fair value declined 1.72% from the Company’s amortized cost. The increase in percentage of unrealized losses is related to market liquidity concerns associated with COVID-19 during the first quarter which widened credit spreads on securities and changes in market interest rates since the purchase dates. Unrecognized losses associated with liquidity concerns as a result of COVID-19 are not expected to remain constant in the future, however, unrecognized losses will continue to vary with general market interest rate fluctuations. Fair values are expected to recover as the securities approach their respective maturity dates and management believes it is not more likely than not it will be required to sell before recovery of the amortized cost basis. For the three months ended March 31, 2020 the Company received $14.0 million in proceeds and recognized a $1.2 million gain on sales of available-for-sale securities. There were no sales and calls of securities for the three months ended March 31, 2019 . There were no credit losses recognized in earnings for the three months ended March 31, 2020 and 2019 . |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans | Loans The following disclosure reports the Company’s loan portfolio segments and classes. Segments are groupings of similar loans at a level in which the Company has adopted systematic methods of documentation for determining its allowance for loan and credit losses. Classes are a disaggregation of the portfolio segments. The Company’s loan portfolio segments are: Real estate loans. Real estate includes loans for which the Company holds one-to-four family, multi-family, commercial and construction real property as collateral. Commercial real estate lending activity is typically restricted to owner-occupied properties or to investor properties that are owned by customers with a current banking relationship. The primary risks of real estate mortgage loans include the borrower’s inability to pay, material decreases in the value of the real estate that is being held as collateral and significant increases in interest rates, which may make the real estate mortgage loan unprofitable. Real estate loans also may be adversely affected by conditions in the real estate markets or in the general economy. Commercial and industrial . Commercial and industrial loans consist of loans and lines of credit to small and medium-sized businesses in a wide variety of industries, including distributors, manufacturers, software developers business services companies and independent finance companies. Commercial and industrial loans are generally collateralized by accounts receivable, inventory, equipment, loan and lease receivables, and other commercial assets, and may be supported by other credit enhancements such as personal guarantees. Risk may arise from differences between expected and actual cash flows and/or liquidity levels of the borrowers, as well as the type of collateral securing these loans and the reliability of the conversion thereof to cash. Since the March 2019 sale of the business loan portfolio, commercial and industrial loans consist primarily of asset based loans. In 2020, the Company began offering a new pilot product called SEN Leverage, which will allow Silvergate customers to obtain U.S. dollar loans collateralized by bitcoin held at select digital currency exchanges that are also Silvergate customers. The product uses the Silvergate Exchange Network (“SEN”) to fund loans and process repayments in real-time 24 hours per day, 7 days per week. The Company plans to expand this offering in the latter part of 2020. The outstanding loan balance of SEN Leverage loans was immaterial as of March 31, 2020. Consumer and other. Consumer loans consist of consumer loans and other loans secured by personal property. Reverse mortgage. From 2012 to 2014, the Company purchased home equity conversion mortgage (“HECM”) loans (also known as reverse mortgage loans) which are a special type of home loan, for homeowners aged 62 years or older, that requires no monthly mortgage payments. Reverse mortgage loan insurance is provided by the U.S. Federal Housing Administration through the HECM program which protects lenders from losses due to non-repayment of the loans. In mid-2014, the Company ceased purchases of reverse mortgage loans and, began selling its remaining loans in the secondary market. Mortgage warehouse. The Company’s warehouse lending division provides short-term interim funding for single-family residential mortgage loans originated by mortgage bankers or other lenders pending the sale of such loans in the secondary market. The Company’s risk is mitigated by comprehensive policies, procedures, and controls governing this activity, partial loan funding by the originating lender, guaranties or additional monies pledged to the Company as security, and the short holding period of funded loans on the Company’s balance sheet. In addition, the loss rates of this portfolio have historically been minimal, and these loans are all subject to written purchase commitments from takeout investors or are hedged. The Company’s mortgage warehouse loans may either be held-for-investment or held-for-sale depending on the underlying contract. The Company sold approximately $21.7 million and $63.9 million of loans to participants during the three months ended March 31, 2020 and 2019 , respectively. At March 31, 2020 and December 31, 2019 , gross warehouse loans were approximately $486.6 million and $405.0 million , respectively. A summary of loans as of the periods presented are as follows: March 31, December 31, (Dollars in thousands) Real estate loans: One-to-four family $ 202,214 $ 193,367 Multi-family 76,721 81,233 Commercial 325,116 331,052 Construction 10,034 7,213 Commercial and industrial 15,948 14,440 Consumer and other 154 122 Reverse mortgage 1,431 1,415 Mortgage warehouse 51,596 39,247 Total gross loans held-for-investment 683,214 668,089 Deferred fees, net 2,760 2,724 Total loans held-for-investment 685,974 670,813 Allowance for loan losses (6,558 ) (6,191 ) Total loans held-for-investment, net $ 679,416 $ 664,622 Total loans held-for-sale (1) $ 435,023 $ 375,922 ________________________ (1) Loans held-for-sale included $435.0 million and $365.8 million of mortgage warehouse loans at March 31, 2020 and December 31, 2019 , respectively. At March 31, 2020 and December 31, 2019 , approximately $615.5 million and $614.3 million , respectively, of the Company’s loan portfolio were collateralized by various forms of real estate. A significant percentage of such loans are collateralized by properties located in California ( 74.4% and 64.8% as of March 31, 2020 and December 31, 2019 , respectively) and Arizona ( 6.6% and 10.2% as of March 31, 2020 and December 31, 2019 , respectively) with no other state greater than 5%. The Company attempts to address and mitigate concentrations of credit risk by making loans that are diversified by collateral type, placing limits on the amounts of various categories of loans relative to total Company capital, and conducting quarterly reviews of its portfolio by collateral type, geography, and other characteristics. While management believes that the collateral presently securing its portfolio and the recorded allowance for loan losses are adequate to absorb potential losses, there can be no assurances that significant deterioration in the California and Arizona real estate markets would not expose the Company to significantly greater credit risk. Recorded investment in loans excludes accrued interest receivable, loan origination fees, net and unamortized premium or discount, net due to immateriality. Accrued interest on loans held-for-investment totaled approximately $2.3 million and $2.2 million and deferred fees totaled approximately $2.8 million and $2.7 million at March 31, 2020 and December 31, 2019 , respectively. Allowance for Loan Losses During the first quarter, the Company recorded a provision for loan losses of $0.4 million and t he ratio of the allowance for loan losses to gross loans held-for-investment at March 31, 2020 was 0.96% . The level of the first quarter provision was based on modest increases in loan portfolio balances, Silvergate’s historically strong credit quality and minimal loan charge-offs, and was largely influenced by the low to moderate loan-to-value margins in the Company's commercial and multi-family real estate and single-family residential real estate loans held-for-investment, as evidenced by weighted average loan-to-value ratios in the low- to mid-50% range as of March 31, 2020. Although there is significant uncertainly in the current economic environment due to the impact of the COVID-19 pandemic, the Company’s relatively low loan-to-value ratios provides a lower probability of loss in the event of defaults in the Company’s loan portfolio. The Company will continue to monitor trends in its portfolio segments for any known or probable adverse conditions with a particular emphasis on retail and hospitality loans within the commercial real estate loan portfolio. The following tables present the allocation of the allowance for loan losses, as well as the activity in the allowance by loan class, and recorded investment in loans held-for-investment as of and for the periods presented: Three Months Ended March 31, 2020 One-to Multi- Commercial Construction Commercial Consumer Reverse Mortgage Total (Dollars in thousands) Balance, December 31, 2019 $ 2,051 $ 653 $ 2,791 $ 96 $ 312 $ 1 $ 37 $ 250 $ 6,191 Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Provision for loan losses (80 ) 36 166 162 114 — 1 (32 ) 367 Balance, March 31, 2020 $ 1,971 $ 689 $ 2,957 $ 258 $ 426 $ 1 $ 38 $ 218 $ 6,558 Three Months Ended March 31, 2019 One-to Multi- Commercial Construction Commercial Consumer Reverse Mortgage Total (Dollars in thousands) Balance, December 31, 2018 $ 1,848 $ 483 $ 3,854 $ 98 $ 156 $ 1 $ 54 $ 229 $ 6,723 Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Provision for loan losses 41 28 83 10 100 (1 ) — 6 267 Balance, March 31, 2019 $ 1,889 $ 511 $ 3,937 $ 108 $ 256 $ — $ 54 $ 235 $ 6,990 March 31, 2020 One-to Multi- Commercial Construction Commercial Consumer Reverse Mortgage Total (Dollars in thousands) Amount of allowance attributed to: Specifically evaluated impaired loans $ 11 $ — $ — $ — $ — $ — $ 29 $ — $ 40 General portfolio allocation 1,960 689 2,957 258 426 1 9 218 6,518 Total allowance for loan losses $ 1,971 $ 689 $ 2,957 $ 258 $ 426 $ 1 $ 38 $ 218 $ 6,558 Loans evaluated for impairment: Specifically evaluated $ 3,732 $ — $ 1,941 $ — $ 2,252 $ — $ 850 $ — $ 8,775 Collectively evaluated 198,482 76,721 323,175 10,034 13,696 154 581 51,596 674,439 Total gross loans held-for-investment $ 202,214 $ 76,721 $ 325,116 $ 10,034 $ 15,948 $ 154 $ 1,431 $ 51,596 $ 683,214 December 31, 2019 One-to Multi- Commercial Construction Commercial Consumer Reverse Mortgage Total (Dollars in thousands) Amount of allowance attributed to: Specifically evaluated impaired loans $ 10 $ — $ — $ — $ — $ — $ 29 $ — $ 39 General portfolio allocation 2,041 653 2,791 96 312 1 8 250 6,152 Total allowance for loan losses $ 2,051 $ 653 $ 2,791 $ 96 $ 312 $ 1 $ 37 $ 250 $ 6,191 Loans evaluated for impairment: Specifically evaluated $ 4,222 $ — $ 7,353 $ — $ 2,714 $ — $ 848 $ — $ 15,137 Collectively evaluated 189,145 81,233 323,699 7,213 11,726 122 567 39,247 652,952 Total gross loans held-for-investment $ 193,367 $ 81,233 $ 331,052 $ 7,213 $ 14,440 $ 122 $ 1,415 $ 39,247 $ 668,089 Impaired Loans The following tables provide a summary of the Company’s investment in impaired loans as of and for the periods presented: March 31, 2020 Unpaid Recorded Related (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 4,315 $ 3,666 $ — Commercial 1,941 1,941 — Commercial and industrial 2,484 2,252 — Reverse mortgage 511 511 — 9,251 8,370 — With an allowance recorded: Real estate loans: One-to-four family 66 66 11 Reverse mortgage 339 339 29 405 405 40 Total impaired loans $ 9,656 $ 8,775 $ 40 December 31, 2019 Unpaid Recorded Related (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 4,792 $ 4,156 $ — Commercial 7,632 7,353 — Commercial and industrial 2,929 2,714 — Reverse mortgage 510 511 — 15,863 14,734 — With an allowance recorded: Real estate loans: One-to-four family 66 66 10 Reverse mortgage 337 337 29 403 403 39 Total impaired loans $ 16,266 $ 15,137 $ 39 Three Months Ended March 31, 2020 2019 Average Interest Average Interest (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 3,731 $ 26 $ 3,539 $ 47 Commercial 1,941 21 7,878 97 Commercial and industrial 2,329 42 2,888 53 Reverse mortgage 511 — 798 — 8,512 89 15,103 197 With an allowance recorded: Real estate loans: One-to-four family 66 1 8 — Reverse mortgage 338 — 430 — 404 1 438 — Total impaired loans $ 8,916 $ 90 $ 15,541 $ 197 For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs. Cash basis interest income is not materially different than interest income recognized. Nonaccrual and Past Due Loans Nonperforming loans include individually evaluated impaired loans. Nonperforming loans consist of loans on nonaccrual status for which the accrual of interest has been discontinued and loans 90 days or more past due and still accruing interest. The following tables present by loan class the aging analysis based on contractual terms, nonaccrual loans, and the Company’s recorded investment in loans held-for-investment as of the periods presented: March 31, 2020 30-59 60-89 Greater Total Current Total Nonaccruing Loans (Dollars in thousands) Real estate loans: One-to-four family $ 3,587 $ 2,804 $ 2,814 $ 9,205 $ 193,009 $ 202,214 $ 3,478 $ — Multi-family — — — — 76,721 76,721 — — Commercial — — — — 325,116 325,116 — — Construction — — — — 10,034 10,034 — — Commercial and industrial — — — — 15,948 15,948 798 — Consumer and other — — — — 154 154 — — Reverse mortgage — — — — 1,431 1,431 850 — Mortgage warehouse — — — — 51,596 51,596 — — Total gross loans held-for-investment $ 3,587 $ 2,804 $ 2,814 $ 9,205 $ 674,009 $ 683,214 $ 5,126 $ — December 31, 2019 30-59 60-89 Greater Total Current Total Nonaccruing Loans (Dollars in thousands) Real estate loans: One-to-four family $ 3,573 $ 96 $ 3,302 $ 6,971 $ 186,396 $ 193,367 $ 3,963 $ — Multi-family — — — — 81,233 81,233 — — Commercial — — — — 331,052 331,052 — — Construction — — — — 7,213 7,213 — — Commercial and industrial — — — — 14,440 14,440 1,098 — Consumer and other — — — — 122 122 — — Reverse mortgage — — — — 1,415 1,415 848 — Mortgage warehouse — — — — 39,247 39,247 — — Total gross loans held-for-investment $ 3,573 $ 96 $ 3,302 $ 6,971 $ 661,118 $ 668,089 $ 5,909 $ — Troubled Debt Restructurings A loan is identified as a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulties and, for economic or legal reasons related to these difficulties, the Company grants a concession to the borrower in the restructuring that it would not otherwise consider. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. The Company has granted a concession when, as a result of the restructuring, it does not expect to collect all amounts due or within the time periods originally due under the original contract, including one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a temporary forbearance with regard to the payment of principal or interest. All troubled debt restructurings are reviewed for potential impairment. Generally, a nonaccrual loan that is restructured remains on nonaccrual status for a minimum period of six months to demonstrate that the borrower can perform under the restructured terms. If the borrower’s performance under the new terms is not reasonably assured, the loan remains classified as a nonaccrual loan. Loans classified as TDRs are reported as impaired loans. As of March 31, 2020 and December 31, 2019 , the Company had a recorded investment in TDR’s of $1.7 million and $1.8 million , respectively. The Company has not allocated any amount of specific allowance for those loans at March 31, 2020 and December 31, 2019 . The Company has not committed to lend additional amounts to these TDRs. No loans were modified as TDRs during the three months ended March 31, 2020 or March 31, 2019 . A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. There were no loans modified as TDRs for which there was a payment default within twelve months during the three months ended March 31, 2020 or 2019 . There was no provision for loan loss or charge-offs for TDR’s that subsequently defaulted during the three months ended March 31, 2020 or 2019 . Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. This analysis typically includes larger, nonhomogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass : Loans in all classes that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. Special mention : Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss : Credits rated as loss are charged-off. Management has no expectation of the recovery of any payments in respect of credits rated as loss. The following tables present by portfolio class the Company’s internal risk grading system as well as certain other information concerning the credit quality of the Company’s recorded investment in loans held-for-investment as of the periods presented. No assets were classified as loss or doubtful during the periods presented. Credit Risk Grades Pass Special Mention Substandard Doubtful Total (Dollars in thousands) March 31, 2020 Real estate loans: One-to-four family $ 198,736 $ — $ 3,478 $ — $ 202,214 Multi-family 76,721 — — — 76,721 Commercial 316,595 8,521 — — 325,116 Construction 10,034 — — — 10,034 Commercial and industrial 13,696 — 2,252 — 15,948 Consumer and other 154 — — — 154 Reverse mortgage 444 137 850 — 1,431 Mortgage warehouse 51,596 — — — 51,596 Total gross loans held-for-investment $ 667,976 $ 8,658 $ 6,580 $ — $ 683,214 Credit Risk Grades Pass Special Mention Substandard Doubtful Total (Dollars in thousands) December 31, 2019 Real estate loans: One-to-four family $ 189,405 $ — $ 3,962 $ — $ 193,367 Multi-family 81,233 — — — 81,233 Commercial 322,671 8,381 — — 331,052 Construction 7,213 — — — 7,213 Commercial and industrial 11,726 — 2,714 — 14,440 Consumer and other 122 — — — 122 Reverse mortgage 435 132 848 — 1,415 Mortgage warehouse 39,247 — — — 39,247 Total gross loans held-for-investment $ 652,052 $ 8,513 $ 7,524 $ — $ 668,089 Related Party Loans The Company had related party loans with an outstanding balance of $4.6 million as of March 31, 2020 and December 31, 2019 . During the three months ended March 31, 2020 , the balance of related party loans decreased by $20,000 due to principal payments. |
FHLB Advances and Other Borrowi
FHLB Advances and Other Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
FHLB Advances and Other Borrowings | FHLB Advances and Other Borrowings Federal Home Loan Bank (“FHLB”) Advances The following table sets forth certain information on our FHLB advances during the period presented: Three Months Ended Year Ended (Dollars in thousands) Amount outstanding at period-end $ 30,000 49,000 Weighted average interest rate at period-end 0.21 % 1.66 % Maximum month-end balance during the period $ 115,000 $ 218,000 Average balance outstanding during the period $ 63,934 $ 28,205 Weighted average interest rate during the period 1.45 % 1.94 % FHLB advances are secured with eligible collateral consisting of certain real estate loans. Advances from the FHLB are subject to the FHLB’s collateral and underwriting requirements, and as of March 31, 2020 and December 31, 2019 , were limited in the aggregate to 35% of the Company’s total assets. Loans with carrying values of approximately $1.0 billion and $875.9 million were pledged to the FHLB as of March 31, 2020 and December 31, 2019 , respectively. Unused borrowing capacity based on the lesser of the percentage of total assets and pledged collateral was approximately $643.8 million and $554.6 million as of March 31, 2020 and December 31, 2019 , respectively. During the three months ended March 31, 2020, the Company initiated and settled a $64.0 million FHLB five-year term advance. Due to an increase in FHLB advance rates after settlement, the Company repaid the advance and recorded a gain on extinguishment of debt of $0.9 million . FRB Advances The Company is also approved to borrow through the Discount Window of the Federal Reserve Bank of San Francisco on a collateralized basis without any fixed dollar limit. Loans with a carrying value of approximately $7.6 million and $10.1 million were pledged to the FRB at March 31, 2020 and December 31, 2019 , respectively. The Company’s borrowing capacity under the Federal Reserve’s discount window program was $5.8 million as of March 31, 2020 . At March 31, 2020 and December 31, 2019 , there were no borrowings outstanding under any of these lines. Federal Funds Purchased The Company may borrow up to an aggregate $32.0 million , overnight on an unsecured basis, from three of its correspondent banks. Access to these funds is subject to liquidity availability, market conditions and any negative material change in the Company’s credit profile. As of March 31, 2020 and December 31, 2019 , the Company had no outstanding balance of federal funds purchased. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2020 | |
Notes payable | |
Debt Instrument [Line Items] | |
Notes Payable | Notes Payable On January 29, 2016, the Company entered into a term loan with a commercial bank for a single principal advance of $8.0 million due to mature on January 29, 2021. Loan interest and principal was payable quarterly commencing April 2016 and accrued interest at an annual rate equal to 2.60% plus the greater of zero percent and the one-month LIBOR rate. The proceeds were used to redeem preferred stock and could be prepaid at any time. During the three months ended March 31, 2020, the Company paid off the note in full. The outstanding principal balance at December 31, 2019 was $3.7 million |
Subordinated Debentures, Net
Subordinated Debentures, Net | 3 Months Ended |
Mar. 31, 2020 | |
Subordinated Debentures | |
Debt Instrument [Line Items] | |
Subordinated Debentures, Net | Subordinated Debentures, Net A trust formed by the Company issued $12.5 million of floating rate trust preferred securities in July 2001 as part of a pooled offering of such securities. The Company issued subordinated debentures to the trust in exchange for its proceeds from the offering. The debentures and related accrued interest represent substantially all of the assets of the trust. The subordinated debentures bear interest at six-month LIBOR plus 375 basis points, which adjusts every six months in January and July of each year. Interest is payable semiannually. At March 31, 2020 , the interest rate for the Company’s next scheduled payment was 5.51% , based on six-month LIBOR of 1.76% . On any January 25 or July 25 the Company may redeem the 2001 subordinated debentures at 100% of principal amount plus accrued interest. The 2001 subordinated debentures mature on July 25, 2031. A second trust formed by the Company issued $3.0 million of trust preferred securities in January 2005 as part of a pooled offering of such securities. The Company issued subordinated debentures to the trust in exchange for its proceeds from the offering. The debentures and related accrued interest represent substantially all of the assets of the trust. The subordinated debentures bear interest at three-month LIBOR plus 185 basis points, which adjusts every three months. Interest is payable quarterly. At March 31, 2020 , the interest rate for the Company’s next scheduled payment was 2.59% , based on three-month LIBOR of 0.74% . On the 15th day of any March, June, September, or December, the Company may redeem the 2005 subordinated debentures at 100% of principal amount plus accrued interest. The 2005 subordinated debentures mature on March 15, 2035. The Company also retained a 3% minority interest in each of these trusts which is included in subordinated debentures. The balance of the equity in the trusts is comprised of mandatorily redeemable preferred securities. The subordinated debentures may be included in Tier I capital (with certain limitations applicable) under current regulatory guidelines and interpretations. The Company has the right to defer interest payments on the subordinated debentures from time to time for a period not to exceed five years . |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivative and Hedging Activities The Company is exposed to certain risks relating to its ongoing business operations. The Company utilizes interest rate derivatives as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the derivative does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual derivative agreements. In accordance with accounting guidance, changes in the fair value of derivatives designated and that qualify as cash flow hedges are initially recorded in other comprehensive income (“OCI”), reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of financial condition under a systematic and rational method over the life of the hedging instrument and is presented in the same income statement line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income. Interest rate floor. In 2019, the Company entered into 20 interest rate floor agreements (the "Floor Agreements") for a total notional amount of $400.0 million to hedge cash flow receipts on cash and securities or loans, if needed. The original Floor Agreements expire on various dates in April 2024 and July 2029. The Company utilizes one-month LIBOR and three-month LIBOR interest rate floors as hedges against adverse changes in cash flows on the designated cash, securities or loans attributable to fluctuations in the federal funds rate or three-month LIBOR below 2.50% or 2.25% , as applicable. The Floor Agreements were determined to be fully effective during all periods presented and, as such, no amount of ineffectiveness has been included in net income. The upfront fee paid to the counterparty in entering into these Floor Agreements was approximately $20.8 million . During the three months ended March 31, 2020, the Company sold $200.0 million of its total $400.0 million notional amount of interest rate floors for $13.0 million , which resulted in a net gain of $8.4 million , to be recognized over the weighted average remaining term of 4.1 years. The remaining agreements are one-month LIBOR floors with a strike price of 2.25% and expire in July 2029. Interest rate cap. In 2012, the Company entered into a $12.5 million and a $3.0 million notional forward interest rate cap agreement (the “Cap Agreements”) to hedge its variable rate subordinated debentures. The Cap Agreements expire July 25, 2022 and March 15, 2022, respectively. The Company utilizes interest rate caps as hedges against adverse changes in cash flows on the designated preferred trusts attributable to fluctuations in three-month LIBOR beyond 0.50% for the $3.0 million subordinated debenture and six-month LIBOR beyond 0.75% for the $12.5 million subordinated debenture. The Cap Agreements were determined to be fully effective during all periods presented and, as such, no amount of ineffectiveness has been included in net income. The upfront fee paid to the counterparty in entering into these Cap Agreements was approximately $2.5 million . The table below presents the fair value of the Company’s derivative financial instruments as well as the classification within the consolidated balance sheets. March 31, December 31, Balance Sheet Fair Value Balance Sheet Fair Value (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor Derivative assets $ 33,445 Derivative assets $ 23,054 Cash flow hedge interest rate cap Derivative assets 61 Derivative assets 386 The following table summarizes the effects of derivatives in cash flow hedging relationships designated as hedging instruments on the Company’s consolidated statements of operations for the periods presented. Amount of Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended Three Months Ended 2020 2019 2020 2019 (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor $ 6,096 $ 16 Interest income - Other interest earning assets $ 125 $ (11 ) Cash flow hedge interest rate floor 17,666 14 Interest income - Securities 117 (10 ) Cash flow hedge interest rate cap (280 ) (113 ) Interest expense - Subordinated debentures (55 ) (16 ) The Company estimates that approximately $4.4 million of net derivative gain included in OCI will be reclassified into earnings within the next 12 months . No gain or loss was reclassified from OCI into earnings as a result of forecasted transactions that failed to occur during the periods presented. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Comparison of the federal statutory income tax rates to the Company’s effective income tax rates for the periods presented are as follows: Three Months Ended March 31, 2020 2019 Amount Rate Amount Rate (Dollars in thousands) Statutory federal tax $ 1,295 21.0 % $ 2,821 21.0 % State tax, net of federal benefit 494 8.0 % 1,018 7.6 % Tax credits (56 ) (0.9 )% (43 ) (0.3 )% Other items, net 41 0.7 % 202 1.5 % Actual tax expense $ 1,774 28.8 % $ 3,998 29.8 % Income tax expense was $1.8 million for the three months ended March 31, 2020 compared to $4.0 million for the three months ended March 31, 2019 . The decrease was primarily related to reduced pre-tax income for the three months ended March 31, 2020 when compared to the three months ended March 31, 2019 . The effective tax rates for the three months ended March 31, 2020 and 2019 were 28.8% and 29.8% , respectively. The decrease in the Company’s effective tax rate was primarily related to the recognition of state related tax adjustments during the three months ended March 31, 2019. The deferred tax liability balance as of March 31, 2020 was $4.6 million compared to $0.4 million as of December 31, 2019 . The primary change in balance was due to the increase in unrealized gains on derivative assets, partially offset by unrealized losses on our available-for-sale securities portfolio. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance Sheet Items In the normal course of business, the Company enters into various transactions, which, in accordance with GAAP, are not included in the consolidated statements of financial condition. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and issue letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk exceeding the amounts recognized on the consolidated statements of financial condition. The Company’s exposure to credit loss is represented by the contractual amounts of these commitments. The same credit policies and procedures are used in making these commitments as for on-balance sheet instruments. The Company is not aware of any accounting loss to be incurred by funding these commitments, however, an allowance for off-balance sheet credit risk is recorded in other liabilities on the statements of financial condition. The allowance for these commitments amounted to approximately $0.2 million and $0.1 million as of March 31, 2020 and December 31, 2019 , respectively. The Company’s commitments associated with outstanding letters of credit and commitments to extend credit expiring by period as of the date indicated are summarized below. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. March 31, December 31, (Dollars in thousands) Unfunded lines of credit $ 61,231 $ 47,433 Letters of credit 655 655 Total credit extension commitments $ 61,886 $ 48,088 Unfunded lines of credit represent unused credit facilities to the Company’s current borrowers that represent no change in credit risk that exist in the Company’s portfolio. Lines of credit generally have variable interest rates. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, the Company would be entitled to seek recovery from the client from the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and/or marketable securities. The Company’s policies generally require that letter of credit arrangements contain security and debt covenants like those contained in loan agreements and our credit risk associated with issuing letters of credit is essentially the same as the risk involved in extending loan facilities to customers. The Company minimizes its exposure to loss under letters of credit and credit commitments by subjecting them to the same credit approval and monitoring procedures used for on-balance sheet instruments. The effect on the Company’s revenue, expenses, cash flows and liquidity of the unused portions of these letters of credit commitments cannot be precisely predicted because there is no guarantee that the lines of credit will be used. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract, for a specific purpose. Commitments generally have variable interest rates, 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 disclosed above do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company is based on management’s credit evaluation of the customer. Litigation The Company is involved in various matters of litigation which have arisen in the ordinary course of its business. In the opinion of management, the disposition of such pending litigation will not have a material adverse effect on the Company’s financial statements. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation In June 2018, the Company adopted the 2018 Equity Compensation Plan, or 2018 Plan, that permits the Compensation Committee, in its sole discretion, to grant various forms of incentive awards. Under the 2018 Plan, the Compensation Committee has the power to grant stock options, stock appreciation rights, or SARs, restricted stock and restricted stock units. The number of shares that may be issued pursuant to awards under the 2018 Plan is 1,596,753 . In 2010, the Company adopted an equity compensation plan, or 2010 Plan, that provides for the grant of stock options to employees, directors, and other persons referred to in Rule 701 under the U.S. Securities Act of 1933. The number of shares that may be issued pursuant to awards under the 2010 Plan is 730,784 . The Compensation Committee of the Company’s Board of Directors is responsible for administrating the 2010 Plan and determining the terms of all awards under it, including their vesting, except that in the case of a change in control of the Company all options granted under the 2010 Plan shall become 100% vested. As of March 31, 2020 , there are no shares available for issuance under the 2010 Plan. In accordance with authoritative guidance for stock-based compensation, compensation expense is recognized only for those shares expected to vest, based on the Company’s historical experience and future expectations. The Company has elected a policy of estimating expected forfeitures. Total compensation cost charged against income was $199,000 and $19,000 for the three months ended March 31, 2020 and 2019 , respectively. A summary of stock option activity as of March 31, 2020 and changes during the three months ended March 31, 2020 is presented below: Number of Weighted Weighted (in years) Aggregate (in thousands) Outstanding at January 1, 2020 917,857 $ 7.54 Granted 3,456 14.89 Exercised (1,250 ) 12.00 Forfeited/Expired (3,636 ) 11.67 Outstanding at March 31, 2020 916,427 $ 7.20 4.1 years $ 3,249 Exercisable at March 31, 2020 681,909 $ 4.97 2.3 years $ 3,246 Vested or Expected to Vest at March 31, 2020 882,558 $ 7.25 3.9 years $ 3,249 As of March 31, 2020 , there was $0.8 million of total unrecognized compensation cost related to non-vested stock options which is expected to be recognized over a weighted-average period of 3.4 years. Restricted Stock Units A summary of the status of the Company’s nonvested restricted stock unit awards as of March 31, 2020 , and changes during the three months ended March 31, 2020 , is presented below: Number of Shares Weighted-Average Nonvested at January 1, 2020 82,627 $ 16.09 Granted 1,175 14.89 Canceled or Forfeited (3,944 ) 16.09 Nonvested at March 31, 2020 79,858 $ 16.07 At March 31, 2020 , there was approximately $0.9 million of total unrecognized compensation expense related to nonvested restricted stock unit awards, which is expected to be recognized over a weighted-average period of 3.0 years. |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. 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. As of January 1, 2019, the capital conservation buffer had fully phased in to 2.50%. Management believes, as of March 31, 2020 , 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. For the periods presented, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Actual capital amounts and ratios for the Company (assuming minimum capital adequacy ratios were applicable to the Company) and the Bank as of March 31, 2020 and December 31, 2019 , are presented in the following tables: Actual Minimum capital To be well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) March 31, 2020 The Company Tier 1 leverage ratio $ 244,726 10.98 % $ 89,127 4.00 % N/A N/A Common equity tier 1 capital ratio 229,226 23.75 % 43,436 4.50 % N/A N/A Tier 1 risk-based capital ratio 244,726 25.35 % 57,915 6.00 % N/A N/A Total risk-based capital ratio 251,438 26.05 % 77,219 8.00 % N/A N/A The Bank Tier 1 leverage ratio 230,056 10.33 % 89,096 4.00 % $ 111,371 5.00 % Common equity tier 1 capital ratio 230,056 23.86 % 43,398 4.50 % 62,686 6.50 % Tier 1 risk-based capital ratio 230,056 23.86 % 57,864 6.00 % 77,151 8.00 % Total risk-based capital ratio 236,768 24.55 % 77,151 8.00 % 96,439 10.00 % Actual Minimum capital To be well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 The Company Tier 1 leverage ratio $ 240,135 11.23 % $ 85,501 4.00 % N/A N/A Common equity tier 1 capital ratio 224,635 24.52 % 41,233 4.50 % N/A N/A Tier 1 risk-based capital ratio 240,135 26.21 % 54,978 6.00 % N/A N/A Total risk-based capital ratio 246,447 26.90 % 73,304 8.00 % N/A N/A The Bank Tier 1 leverage ratio 224,605 10.52 % 85,399 4.00 % $ 106,749 5.00 % Common equity tier 1 capital ratio 224,605 24.55 % 41,163 4.50 % 59,458 6.50 % Tier 1 risk-based capital ratio 224,605 24.55 % 54,884 6.00 % 73,179 8.00 % Total risk-based capital ratio 230,917 25.24 % 73,179 8.00 % 91,474 10.00 % The Bank is restricted as to the amount of dividends that it can pay to the Company. Dividends declared in excess of the lesser of the Bank’s undivided profits or the Bank’s net income for its last three fiscal years less the amount of any distribution made to the Bank’s shareholders during the same period must be approved by the California DBO. Also, the Bank may not pay dividends that would result in capital levels being reduced below the minimum requirements shown above. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair value is defined 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. This standard’s fair value hierarchy 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; or other inputs that are observable or can be corroborated by observable market data. Level 3— Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Financial Instruments Required To Be Carried At Fair Value The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities available-for-sale . The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Derivatives . The Company’s derivative assets and liabilities are carried at fair value as required by GAAP. The estimated fair values of the derivative assets and liabilities are based on current market prices for similar instruments. Given the meaningful level of secondary market activity for derivative contracts, active pricing is available for similar assets and accordingly, the Company classifies its derivative assets and liabilities as Level 2. Impaired loans (collateral-dependent) . The Company does not record impaired loans at fair value on a recurring basis. However, from time to time, fair value adjustments are recorded on these loans to reflect (1) partial write-downs, through charge-offs or specific allowances, that are based on the current appraised or market-quoted value of the underlying collateral or (2) the full charge-off of the loan carrying value. In some cases, the properties for which market quotes or appraised values have been obtained are located in areas where comparable sales data is limited, outdated, or unavailable. Fair value estimates for collateral-dependent impaired loans are obtained from real estate brokers or other third-party consultants. These appraisals may utilize a single valuation approach or a combination of approaches, which generally include various Level 3 inputs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available and such adjustments are typically significant. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. Impaired loans presented in the table below as of the periods presented include impaired loans with specific allowances as well as impaired loans that have been partially charged-off. Other real estate owned . Fair value estimates for foreclosed real estate are obtained from real estate brokers or other third-party consultants (Level 3). When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. The following tables provide the hierarchy and fair value for each class of assets and liabilities measured at fair value at March 31, 2020 and December 31, 2019 . As of March 31, 2020 and December 31, 2019 , assets and liabilities measured at fair value on a recurring basis are as follows: Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) March 31, 2020 Assets Securities available-for-sale $ — $ 964,317 $ — $ 964,317 Derivative assets — 33,506 — 33,506 $ — $ 997,823 $ — $ 997,823 Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2019 Assets Securities available-for-sale $ — $ 897,766 $ — $ 897,766 Derivative assets — 23,440 — 23,440 $ — $ 921,206 $ — $ 921,206 As of March 31, 2020 and December 31, 2019 , assets measured at fair value on a non-recurring basis are summarized as follows: Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) March 31, 2020 Assets Impaired loans: Reverse mortgage $ — $ — $ 310 $ 310 Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2019 Assets Impaired loans: Real estate: One-to-four family $ — $ — $ 56 $ 56 Reverse mortgage — — 308 308 Other real estate owned — — 128 128 $ — $ — $ 492 $ 492 Quantitative Information about Level 3 Fair Value Measurements The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated: Fair Value Valuation Technique(s) Significant Range Weighted Average (1) (Dollars in thousands) March 31, 2020 Collateral-dependent impaired loans $ 310 Market comparable properties Marketability discount 10.0 % 10.0 % Selling cost 8.0 % 8.0 % ________________________ (1) Unobservable inputs were weighted by the relative fair value of the instruments. Financial Instruments Not Required To Be Carried At Fair Value FASB ASC Topic 825, Financial Instruments , requires the disclosure of the estimated fair value of financial instruments. The Company’s estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates are not necessarily indicative of the amounts the Company could have realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The following tables present information about the Company’s assets and liabilities that are not measured at fair value in the consolidated statements of financial condition as of the dates presented: Carrying Fair Value Measurements Using Level 1 Level 2 Level 3 Total (Dollars in thousands) March 31, 2020 Financial assets: Cash and due from banks $ 2,778 $ 2,778 $ — $ — $ 2,778 Interest earning deposits 163,422 163,422 — — 163,422 Loans held-for-sale 435,023 — 435,023 — 435,023 Loans held-for-investment, net 679,416 — — 681,447 681,447 Accrued interest receivable 6,344 3 3,480 2,861 6,344 Financial liabilities: Deposits $ 2,002,957 $ — $ 2,064,700 $ — $ 2,064,700 FHLB advances 30,000 — 30,000 — 30,000 Subordinated debentures 15,820 — 14,982 — 14,982 Accrued interest payable 215 — 215 — 215 Carrying Fair Value Measurements Using Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2019 Financial assets: Cash and due from banks $ 1,579 $ 1,579 $ — $ — $ 1,579 Interest earning deposits 132,025 132,025 — — 132,025 Loans held-for-sale 375,922 — 376,126 — 376,126 Loans held-for-investment, net 664,622 — — 666,272 666,272 Accrued interest receivable 5,950 86 3,643 2,221 5,950 Financial liabilities: Deposits $ 1,814,654 $ — $ 1,826,100 $ — $ 1,826,100 Notes payable 3,714 — 3,714 — 3,714 Subordinated debentures 15,816 — 15,203 — 15,203 Accrued interest payable 559 — 559 — 559 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share is shown below. Three Months Ended 2020 2019 (In thousands, except per share data) Basic Net income $ 4,393 $ 9,436 Weighted average common shares outstanding 18,668 17,818 Basic earnings per common share $ 0.24 $ 0.53 Diluted Net income $ 4,393 $ 9,436 Weighted average common shares outstanding for basic earnings per common share 18,668 17,818 Add: Dilutive effects of stock-based awards 449 440 Average shares and dilutive potential common shares 19,117 18,258 Dilutive earnings per common share $ 0.23 $ 0.52 Stock options for 235,000 and 110,000 shares of common stock for the three months ended March 31, 2020 and 2019 , respectively were excluded from the computation of diluted earnings per share, because they were anti-dilutive. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Impact of COVID-19 Pandemic Subsequent to March 31, 2020, the Company began modifying loans by offering payment deferrals for customers experiencing difficulty due to COVID-19, with payment deferrals of two or three months . As of May 5, 2020, 33 loans or a total of $118.7 million in loan balances had been modified to provide payment deferrals, with the majority of the modifications for our commercial real estate borrowers. The two sectors within our commercial real estate loan portfolio that are expected to be most heavily impacted by COVID-19, hospitality and retail, made up $91.1 million of these modifications. As of May 5, 2020, the Company had an additional 37 customers with total loan balances of $34.0 million that were in the process of modification. Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) addressed COVID-19 related modifications and specified that such modifications made on loans that were current as of December 31, 2019 are not TDRs. In accordance with interagency guidance issued in April 2020, these short-term modifications made to a borrower affected by the COVID-19 pandemic and governmental shutdown orders, such as payment deferrals, fee waivers and extensions of repayment terms, do not need to be identified as TDRs if the loans were current at the time a modification plan was implemented. None of the modified loans met or are expected to meet the criteria of a TDR under the CARES Act or the related interagency statement. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business The accompanying consolidated financial statements include the accounts of Silvergate Capital Corporation, a Maryland corporation and its wholly-owned subsidiary, Silvergate Bank (the “Bank”), collectively referred to as (the “Company” or “Silvergate”). The Bank was incorporated in 1987 and commenced business in 1988 under the California Financial Code as an industrial bank. In February 2009 the Bank converted its charter to a California commercial bank, which gave it the added authority to accept demand deposits. At the same time, the Company also became a registered bank holding company under the federal Bank Holding Company Act. The Bank became a member of the Federal Reserve System in December 2012. The Bank is subject to regulation by the California Department of Business Oversight (“DBO”), and the Federal Reserve Bank of San Francisco (“FRB”), and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to applicable legal limits. |
Financial Statement Preparation and Presentation | Financial Statement Preparation and Presentation The accompanying interim consolidated financial statements have been prepared by the Company, without audit, in accordance with the instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”) and, therefore, do not include all information and footnotes necessary for a fair presentation of its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the Company’s consolidated financial statements as of March 31, 2020, however uncertainty over the ultimate impact that the novel coronavirus disease, (or “COVID-19”) will have on the economy generally, and on the Company’s business in particular, makes any estimates and assumptions as of March 31, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. These consolidated statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K dated March 10, 2020. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiaries. The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s financial statements and the accompanying notes. Actual results could materially differ from those estimates. |
Recently issued accounting pronouncements not yet effective | Recently issued accounting pronouncements not yet effective In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (or “ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (or “CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. These amendments were initially effective for fiscal years beginning after December 15, 2019 for SEC registrants and after December 15, 2020, for Public Business Entities, or PBEs. In November 2019, the FASB issued ASU 2019-10, Financial Instruments-Credit Losses (Topic326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which finalized the delay of the effective date for smaller reporting companies, such as the Company to apply the standards related to CECL, until fiscal years beginning after December 15, 2022. For debt securities with other than temporary impairment (OTTI), the guidance will be applied prospectively and for existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets with the scope of CECL, the cumulative effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The Company formed a CECL implementation committee in 2018 which prepared a project plan to migrate towards the adoption date. As part of the project plan, the Company contracted a third-party vendor to assist in the application and analysis of ASU 2016-13 as well as a third party vendor to perform an independent model validation. As part of this process, the Company has determined preliminary loan pool segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company operationalized an initial CECL model during the second quarter of 2019, and is running this preliminary CECL model alongside the existing incurred loss methodology. The Company intends to continue to refine and run the model until the date of adoption. The Company continues to evaluate the effects of ASU 2016-13 on its financial statements and disclosures and whether or not to early adopt the guidance. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (or “ASU 2020-04”), which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the London Interbank Offered Rate (or “LIBOR”) or other interbank offered rate (reference rates) on financial reporting, which currently is expected to be discontinued by the end of 2021. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The Company is evaluating the impact that ASU 2020-04 will have on those financial assets where LIBOR is used as an index rate. |
Financial Instruments Required To Be Carried At Fair Value | Financial Instruments Required To Be Carried At Fair Value The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities available-for-sale . The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Derivatives . The Company’s derivative assets and liabilities are carried at fair value as required by GAAP. The estimated fair values of the derivative assets and liabilities are based on current market prices for similar instruments. Given the meaningful level of secondary market activity for derivative contracts, active pricing is available for similar assets and accordingly, the Company classifies its derivative assets and liabilities as Level 2. Impaired loans (collateral-dependent) . The Company does not record impaired loans at fair value on a recurring basis. However, from time to time, fair value adjustments are recorded on these loans to reflect (1) partial write-downs, through charge-offs or specific allowances, that are based on the current appraised or market-quoted value of the underlying collateral or (2) the full charge-off of the loan carrying value. In some cases, the properties for which market quotes or appraised values have been obtained are located in areas where comparable sales data is limited, outdated, or unavailable. Fair value estimates for collateral-dependent impaired loans are obtained from real estate brokers or other third-party consultants. These appraisals may utilize a single valuation approach or a combination of approaches, which generally include various Level 3 inputs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available and such adjustments are typically significant. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. Impaired loans presented in the table below as of the periods presented include impaired loans with specific allowances as well as impaired loans that have been partially charged-off. Other real estate owned . Fair value estimates for foreclosed real estate are obtained from real estate brokers or other third-party consultants (Level 3). When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Gain (Loss) on Investments | The fair value of available-for-sale securities and their related gross unrealized gains and losses at the dates indicated are as follows: Available-for-sale securities Amortized Cost Gross Gross Fair Value (Dollars in thousands) March 31, 2020 Residential mortgage-backed securities: Government agency mortgage-backed securities $ 682 $ 34 $ — $ 716 Government agency collateralized mortgage obligation 236,334 709 (863 ) 236,180 Private-label collateralized mortgage obligation 25,844 — (3,462 ) 22,382 Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 364,543 10,913 (806 ) 374,650 Municipal bonds 85,268 7,388 — 92,656 Asset backed securities: Government sponsored student loan pools 256,449 — (18,716 ) 237,733 $ 969,120 $ 19,044 $ (23,847 ) $ 964,317 Available-for-sale securities Amortized Cost Gross Gross Fair Value (Dollars in thousands) December 31, 2019 Residential mortgage-backed securities: Government agency mortgage-backed securities $ 769 $ 32 $ — $ 801 Government agency collateralized mortgage obligation 242,203 552 (837 ) 241,918 Private-label collateralized mortgage obligation 26,346 352 (198 ) 26,500 Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 364,719 12,474 (177 ) 377,016 Asset backed securities: Government sponsored student loan pools 258,022 — (6,491 ) 251,531 $ 892,059 $ 13,410 $ (7,703 ) $ 897,766 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | Securities with unrealized losses as of the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: Available-for-sale securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) March 31, 2020 Residential mortgage-backed securities: Government agency collateralized mortgage obligation 134,490 (820 ) 4,530 (43 ) 139,020 (863 ) Private-label collateralized mortgage obligation 10,325 (481 ) 12,057 (2,981 ) 22,382 (3,462 ) Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 41,720 (806 ) — — 41,720 (806 ) Asset backed securities: Government sponsored student loan pools 22,615 (1,772 ) 215,117 (16,944 ) 237,732 (18,716 ) $ 209,150 $ (3,879 ) $ 231,704 $ (19,968 ) $ 440,854 $ (23,847 ) Available-for-sale securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) December 31, 2019 Residential mortgage-backed securities: Government agency collateralized mortgage obligation $ 143,633 $ (785 ) $ 15,794 $ (52 ) $ 159,427 $ (837 ) Private-label collateralized mortgage obligation 59 (1 ) 15,168 (197 ) 15,227 (198 ) Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 13,142 (177 ) — — 13,142 (177 ) Asset backed securities: Government sponsored student loan pools 62,938 (1,317 ) 188,593 (5,174 ) 251,531 (6,491 ) $ 219,772 $ (2,280 ) $ 219,555 $ (5,423 ) $ 439,327 $ (7,703 ) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | A summary of loans as of the periods presented are as follows: March 31, December 31, (Dollars in thousands) Real estate loans: One-to-four family $ 202,214 $ 193,367 Multi-family 76,721 81,233 Commercial 325,116 331,052 Construction 10,034 7,213 Commercial and industrial 15,948 14,440 Consumer and other 154 122 Reverse mortgage 1,431 1,415 Mortgage warehouse 51,596 39,247 Total gross loans held-for-investment 683,214 668,089 Deferred fees, net 2,760 2,724 Total loans held-for-investment 685,974 670,813 Allowance for loan losses (6,558 ) (6,191 ) Total loans held-for-investment, net $ 679,416 $ 664,622 Total loans held-for-sale (1) $ 435,023 $ 375,922 ________________________ (1) Loans held-for-sale included $435.0 million and $365.8 million of mortgage warehouse loans at March 31, 2020 and December 31, 2019 , respectively. |
Financing Receivable, Allowance for Credit Loss | The following tables present the allocation of the allowance for loan losses, as well as the activity in the allowance by loan class, and recorded investment in loans held-for-investment as of and for the periods presented: Three Months Ended March 31, 2020 One-to Multi- Commercial Construction Commercial Consumer Reverse Mortgage Total (Dollars in thousands) Balance, December 31, 2019 $ 2,051 $ 653 $ 2,791 $ 96 $ 312 $ 1 $ 37 $ 250 $ 6,191 Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Provision for loan losses (80 ) 36 166 162 114 — 1 (32 ) 367 Balance, March 31, 2020 $ 1,971 $ 689 $ 2,957 $ 258 $ 426 $ 1 $ 38 $ 218 $ 6,558 Three Months Ended March 31, 2019 One-to Multi- Commercial Construction Commercial Consumer Reverse Mortgage Total (Dollars in thousands) Balance, December 31, 2018 $ 1,848 $ 483 $ 3,854 $ 98 $ 156 $ 1 $ 54 $ 229 $ 6,723 Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Provision for loan losses 41 28 83 10 100 (1 ) — 6 267 Balance, March 31, 2019 $ 1,889 $ 511 $ 3,937 $ 108 $ 256 $ — $ 54 $ 235 $ 6,990 March 31, 2020 One-to Multi- Commercial Construction Commercial Consumer Reverse Mortgage Total (Dollars in thousands) Amount of allowance attributed to: Specifically evaluated impaired loans $ 11 $ — $ — $ — $ — $ — $ 29 $ — $ 40 General portfolio allocation 1,960 689 2,957 258 426 1 9 218 6,518 Total allowance for loan losses $ 1,971 $ 689 $ 2,957 $ 258 $ 426 $ 1 $ 38 $ 218 $ 6,558 Loans evaluated for impairment: Specifically evaluated $ 3,732 $ — $ 1,941 $ — $ 2,252 $ — $ 850 $ — $ 8,775 Collectively evaluated 198,482 76,721 323,175 10,034 13,696 154 581 51,596 674,439 Total gross loans held-for-investment $ 202,214 $ 76,721 $ 325,116 $ 10,034 $ 15,948 $ 154 $ 1,431 $ 51,596 $ 683,214 December 31, 2019 One-to Multi- Commercial Construction Commercial Consumer Reverse Mortgage Total (Dollars in thousands) Amount of allowance attributed to: Specifically evaluated impaired loans $ 10 $ — $ — $ — $ — $ — $ 29 $ — $ 39 General portfolio allocation 2,041 653 2,791 96 312 1 8 250 6,152 Total allowance for loan losses $ 2,051 $ 653 $ 2,791 $ 96 $ 312 $ 1 $ 37 $ 250 $ 6,191 Loans evaluated for impairment: Specifically evaluated $ 4,222 $ — $ 7,353 $ — $ 2,714 $ — $ 848 $ — $ 15,137 Collectively evaluated 189,145 81,233 323,699 7,213 11,726 122 567 39,247 652,952 Total gross loans held-for-investment $ 193,367 $ 81,233 $ 331,052 $ 7,213 $ 14,440 $ 122 $ 1,415 $ 39,247 $ 668,089 |
Impaired Financing Receivables | The following tables provide a summary of the Company’s investment in impaired loans as of and for the periods presented: March 31, 2020 Unpaid Recorded Related (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 4,315 $ 3,666 $ — Commercial 1,941 1,941 — Commercial and industrial 2,484 2,252 — Reverse mortgage 511 511 — 9,251 8,370 — With an allowance recorded: Real estate loans: One-to-four family 66 66 11 Reverse mortgage 339 339 29 405 405 40 Total impaired loans $ 9,656 $ 8,775 $ 40 December 31, 2019 Unpaid Recorded Related (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 4,792 $ 4,156 $ — Commercial 7,632 7,353 — Commercial and industrial 2,929 2,714 — Reverse mortgage 510 511 — 15,863 14,734 — With an allowance recorded: Real estate loans: One-to-four family 66 66 10 Reverse mortgage 337 337 29 403 403 39 Total impaired loans $ 16,266 $ 15,137 $ 39 Three Months Ended March 31, 2020 2019 Average Interest Average Interest (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 3,731 $ 26 $ 3,539 $ 47 Commercial 1,941 21 7,878 97 Commercial and industrial 2,329 42 2,888 53 Reverse mortgage 511 — 798 — 8,512 89 15,103 197 With an allowance recorded: Real estate loans: One-to-four family 66 1 8 — Reverse mortgage 338 — 430 — 404 1 438 — Total impaired loans $ 8,916 $ 90 $ 15,541 $ 197 |
Financing Receivable, Past Due | The following tables present by loan class the aging analysis based on contractual terms, nonaccrual loans, and the Company’s recorded investment in loans held-for-investment as of the periods presented: March 31, 2020 30-59 60-89 Greater Total Current Total Nonaccruing Loans (Dollars in thousands) Real estate loans: One-to-four family $ 3,587 $ 2,804 $ 2,814 $ 9,205 $ 193,009 $ 202,214 $ 3,478 $ — Multi-family — — — — 76,721 76,721 — — Commercial — — — — 325,116 325,116 — — Construction — — — — 10,034 10,034 — — Commercial and industrial — — — — 15,948 15,948 798 — Consumer and other — — — — 154 154 — — Reverse mortgage — — — — 1,431 1,431 850 — Mortgage warehouse — — — — 51,596 51,596 — — Total gross loans held-for-investment $ 3,587 $ 2,804 $ 2,814 $ 9,205 $ 674,009 $ 683,214 $ 5,126 $ — December 31, 2019 30-59 60-89 Greater Total Current Total Nonaccruing Loans (Dollars in thousands) Real estate loans: One-to-four family $ 3,573 $ 96 $ 3,302 $ 6,971 $ 186,396 $ 193,367 $ 3,963 $ — Multi-family — — — — 81,233 81,233 — — Commercial — — — — 331,052 331,052 — — Construction — — — — 7,213 7,213 — — Commercial and industrial — — — — 14,440 14,440 1,098 — Consumer and other — — — — 122 122 — — Reverse mortgage — — — — 1,415 1,415 848 — Mortgage warehouse — — — — 39,247 39,247 — — Total gross loans held-for-investment $ 3,573 $ 96 $ 3,302 $ 6,971 $ 661,118 $ 668,089 $ 5,909 $ — |
Financing Receivable Credit Quality Indicators Description | The Company uses the following definitions for risk ratings: Pass : Loans in all classes that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. Special mention : Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss : Credits rated as loss are charged-off. Management has no expectation of the recovery of any payments in respect of credits rated as loss. |
Financing Receivable Credit Quality Indicators | The following tables present by portfolio class the Company’s internal risk grading system as well as certain other information concerning the credit quality of the Company’s recorded investment in loans held-for-investment as of the periods presented. No assets were classified as loss or doubtful during the periods presented. Credit Risk Grades Pass Special Mention Substandard Doubtful Total (Dollars in thousands) March 31, 2020 Real estate loans: One-to-four family $ 198,736 $ — $ 3,478 $ — $ 202,214 Multi-family 76,721 — — — 76,721 Commercial 316,595 8,521 — — 325,116 Construction 10,034 — — — 10,034 Commercial and industrial 13,696 — 2,252 — 15,948 Consumer and other 154 — — — 154 Reverse mortgage 444 137 850 — 1,431 Mortgage warehouse 51,596 — — — 51,596 Total gross loans held-for-investment $ 667,976 $ 8,658 $ 6,580 $ — $ 683,214 Credit Risk Grades Pass Special Mention Substandard Doubtful Total (Dollars in thousands) December 31, 2019 Real estate loans: One-to-four family $ 189,405 $ — $ 3,962 $ — $ 193,367 Multi-family 81,233 — — — 81,233 Commercial 322,671 8,381 — — 331,052 Construction 7,213 — — — 7,213 Commercial and industrial 11,726 — 2,714 — 14,440 Consumer and other 122 — — — 122 Reverse mortgage 435 132 848 — 1,415 Mortgage warehouse 39,247 — — — 39,247 Total gross loans held-for-investment $ 652,052 $ 8,513 $ 7,524 $ — $ 668,089 |
FHLB Advances and Other Borro_2
FHLB Advances and Other Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of FHLB Advances | The following table sets forth certain information on our FHLB advances during the period presented: Three Months Ended Year Ended (Dollars in thousands) Amount outstanding at period-end $ 30,000 49,000 Weighted average interest rate at period-end 0.21 % 1.66 % Maximum month-end balance during the period $ 115,000 $ 218,000 Average balance outstanding during the period $ 63,934 $ 28,205 Weighted average interest rate during the period 1.45 % 1.94 % |
Derivative and Hedging Activi_2
Derivative and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents the fair value of the Company’s derivative financial instruments as well as the classification within the consolidated balance sheets. March 31, December 31, Balance Sheet Fair Value Balance Sheet Fair Value (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor Derivative assets $ 33,445 Derivative assets $ 23,054 Cash flow hedge interest rate cap Derivative assets 61 Derivative assets 386 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the effects of derivatives in cash flow hedging relationships designated as hedging instruments on the Company’s consolidated statements of operations for the periods presented. Amount of Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended Three Months Ended 2020 2019 2020 2019 (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor $ 6,096 $ 16 Interest income - Other interest earning assets $ 125 $ (11 ) Cash flow hedge interest rate floor 17,666 14 Interest income - Securities 117 (10 ) Cash flow hedge interest rate cap (280 ) (113 ) Interest expense - Subordinated debentures (55 ) (16 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Comparison of the federal statutory income tax rates to the Company’s effective income tax rates for the periods presented are as follows: Three Months Ended March 31, 2020 2019 Amount Rate Amount Rate (Dollars in thousands) Statutory federal tax $ 1,295 21.0 % $ 2,821 21.0 % State tax, net of federal benefit 494 8.0 % 1,018 7.6 % Tax credits (56 ) (0.9 )% (43 ) (0.3 )% Other items, net 41 0.7 % 202 1.5 % Actual tax expense $ 1,774 28.8 % $ 3,998 29.8 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Off-Balance Sheet Items | The Company’s commitments associated with outstanding letters of credit and commitments to extend credit expiring by period as of the date indicated are summarized below. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. March 31, December 31, (Dollars in thousands) Unfunded lines of credit $ 61,231 $ 47,433 Letters of credit 655 655 Total credit extension commitments $ 61,886 $ 48,088 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Compensation Plans | A summary of stock option activity as of March 31, 2020 and changes during the three months ended March 31, 2020 is presented below: Number of Weighted Weighted (in years) Aggregate (in thousands) Outstanding at January 1, 2020 917,857 $ 7.54 Granted 3,456 14.89 Exercised (1,250 ) 12.00 Forfeited/Expired (3,636 ) 11.67 Outstanding at March 31, 2020 916,427 $ 7.20 4.1 years $ 3,249 Exercisable at March 31, 2020 681,909 $ 4.97 2.3 years $ 3,246 Vested or Expected to Vest at March 31, 2020 882,558 $ 7.25 3.9 years $ 3,249 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | A summary of the status of the Company’s nonvested restricted stock unit awards as of March 31, 2020 , and changes during the three months ended March 31, 2020 , is presented below: Number of Shares Weighted-Average Nonvested at January 1, 2020 82,627 $ 16.09 Granted 1,175 14.89 Canceled or Forfeited (3,944 ) 16.09 Nonvested at March 31, 2020 79,858 $ 16.07 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual capital amounts and ratios for the Company (assuming minimum capital adequacy ratios were applicable to the Company) and the Bank as of March 31, 2020 and December 31, 2019 , are presented in the following tables: Actual Minimum capital To be well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) March 31, 2020 The Company Tier 1 leverage ratio $ 244,726 10.98 % $ 89,127 4.00 % N/A N/A Common equity tier 1 capital ratio 229,226 23.75 % 43,436 4.50 % N/A N/A Tier 1 risk-based capital ratio 244,726 25.35 % 57,915 6.00 % N/A N/A Total risk-based capital ratio 251,438 26.05 % 77,219 8.00 % N/A N/A The Bank Tier 1 leverage ratio 230,056 10.33 % 89,096 4.00 % $ 111,371 5.00 % Common equity tier 1 capital ratio 230,056 23.86 % 43,398 4.50 % 62,686 6.50 % Tier 1 risk-based capital ratio 230,056 23.86 % 57,864 6.00 % 77,151 8.00 % Total risk-based capital ratio 236,768 24.55 % 77,151 8.00 % 96,439 10.00 % Actual Minimum capital To be well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 The Company Tier 1 leverage ratio $ 240,135 11.23 % $ 85,501 4.00 % N/A N/A Common equity tier 1 capital ratio 224,635 24.52 % 41,233 4.50 % N/A N/A Tier 1 risk-based capital ratio 240,135 26.21 % 54,978 6.00 % N/A N/A Total risk-based capital ratio 246,447 26.90 % 73,304 8.00 % N/A N/A The Bank Tier 1 leverage ratio 224,605 10.52 % 85,399 4.00 % $ 106,749 5.00 % Common equity tier 1 capital ratio 224,605 24.55 % 41,163 4.50 % 59,458 6.50 % Tier 1 risk-based capital ratio 224,605 24.55 % 54,884 6.00 % 73,179 8.00 % Total risk-based capital ratio 230,917 25.24 % 73,179 8.00 % 91,474 10.00 % |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | As of March 31, 2020 and December 31, 2019 , assets and liabilities measured at fair value on a recurring basis are as follows: Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) March 31, 2020 Assets Securities available-for-sale $ — $ 964,317 $ — $ 964,317 Derivative assets — 33,506 — 33,506 $ — $ 997,823 $ — $ 997,823 Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2019 Assets Securities available-for-sale $ — $ 897,766 $ — $ 897,766 Derivative assets — 23,440 — 23,440 $ — $ 921,206 $ — $ 921,206 |
Schedule of Assets Measured at Fair Value on Non-Recurring Basis | As of March 31, 2020 and December 31, 2019 , assets measured at fair value on a non-recurring basis are summarized as follows: Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) March 31, 2020 Assets Impaired loans: Reverse mortgage $ — $ — $ 310 $ 310 Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2019 Assets Impaired loans: Real estate: One-to-four family $ — $ — $ 56 $ 56 Reverse mortgage — — 308 308 Other real estate owned — — 128 128 $ — $ — $ 492 $ 492 |
Fair Value Measurement Inputs and Valuation Techniques | The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated: Fair Value Valuation Technique(s) Significant Range Weighted Average (1) (Dollars in thousands) March 31, 2020 Collateral-dependent impaired loans $ 310 Market comparable properties Marketability discount 10.0 % 10.0 % Selling cost 8.0 % 8.0 % ________________________ (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Schedule of Fair Value by Balance Sheet Grouping | The following tables present information about the Company’s assets and liabilities that are not measured at fair value in the consolidated statements of financial condition as of the dates presented: Carrying Fair Value Measurements Using Level 1 Level 2 Level 3 Total (Dollars in thousands) March 31, 2020 Financial assets: Cash and due from banks $ 2,778 $ 2,778 $ — $ — $ 2,778 Interest earning deposits 163,422 163,422 — — 163,422 Loans held-for-sale 435,023 — 435,023 — 435,023 Loans held-for-investment, net 679,416 — — 681,447 681,447 Accrued interest receivable 6,344 3 3,480 2,861 6,344 Financial liabilities: Deposits $ 2,002,957 $ — $ 2,064,700 $ — $ 2,064,700 FHLB advances 30,000 — 30,000 — 30,000 Subordinated debentures 15,820 — 14,982 — 14,982 Accrued interest payable 215 — 215 — 215 Carrying Fair Value Measurements Using Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2019 Financial assets: Cash and due from banks $ 1,579 $ 1,579 $ — $ — $ 1,579 Interest earning deposits 132,025 132,025 — — 132,025 Loans held-for-sale 375,922 — 376,126 — 376,126 Loans held-for-investment, net 664,622 — — 666,272 666,272 Accrued interest receivable 5,950 86 3,643 2,221 5,950 Financial liabilities: Deposits $ 1,814,654 $ — $ 1,826,100 $ — $ 1,826,100 Notes payable 3,714 — 3,714 — 3,714 Subordinated debentures 15,816 — 15,203 — 15,203 Accrued interest payable 559 — 559 — 559 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of basic and diluted earnings per share is shown below. Three Months Ended 2020 2019 (In thousands, except per share data) Basic Net income $ 4,393 $ 9,436 Weighted average common shares outstanding 18,668 17,818 Basic earnings per common share $ 0.24 $ 0.53 Diluted Net income $ 4,393 $ 9,436 Weighted average common shares outstanding for basic earnings per common share 18,668 17,818 Add: Dilutive effects of stock-based awards 449 440 Average shares and dilutive potential common shares 19,117 18,258 Dilutive earnings per common share $ 0.23 $ 0.52 |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies - Sale of Retail Branch (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Retail Branch in San Marcos, California $ in Millions | 1 Months Ended |
Mar. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Reduction in loans | $ 115.4 |
Reduction in deposits | 74.5 |
Pre-tax gain on sale | $ 5.5 |
Securities - Reconciliation fro
Securities - Reconciliation from Amortized Cost to Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities | ||
Amortized Cost | $ 969,120 | $ 892,059 |
Gross Unrealized Gains | 19,044 | 13,410 |
Gross Unrealized Losses | (23,847) | (7,703) |
Fair Value | 964,317 | 897,766 |
Government agency mortgage-backed securities, Residential | ||
Available-for-sale securities | ||
Amortized Cost | 682 | 769 |
Gross Unrealized Gains | 34 | 32 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 716 | 801 |
Government agency collateralized mortgage obligation, Residential | ||
Available-for-sale securities | ||
Amortized Cost | 236,334 | 242,203 |
Gross Unrealized Gains | 709 | 552 |
Gross Unrealized Losses | (863) | (837) |
Fair Value | 236,180 | 241,918 |
Private-label collateralized mortgage obligation, Residential | ||
Available-for-sale securities | ||
Amortized Cost | 25,844 | 26,346 |
Gross Unrealized Gains | 0 | 352 |
Gross Unrealized Losses | (3,462) | (198) |
Fair Value | 22,382 | 26,500 |
Private-label collateralized mortgage obligation, Commercial | ||
Available-for-sale securities | ||
Amortized Cost | 364,543 | 364,719 |
Gross Unrealized Gains | 10,913 | 12,474 |
Gross Unrealized Losses | (806) | (177) |
Fair Value | 374,650 | 377,016 |
Municipal bonds | ||
Available-for-sale securities | ||
Amortized Cost | 85,268 | |
Gross Unrealized Gains | 7,388 | |
Gross Unrealized Losses | 0 | |
Fair Value | 92,656 | |
Government sponsored student loan pools | ||
Available-for-sale securities | ||
Amortized Cost | 256,449 | 258,022 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (18,716) | (6,491) |
Fair Value | $ 237,733 | $ 251,531 |
Securities - Securities in Unre
Securities - Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Fair Value | $ 209,150 | $ 219,772 |
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Unrealized Losses | (3,879) | (2,280) |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Fair Value | 231,704 | 219,555 |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Unrealized Losses | (19,968) | (5,423) |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 440,854 | 439,327 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses | (23,847) | (7,703) |
Government agency collateralized mortgage obligation | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Fair Value | 134,490 | |
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Unrealized Losses | (820) | |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Fair Value | 4,530 | |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Unrealized Losses | (43) | |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 139,020 | |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses | (863) | |
Government agency collateralized mortgage obligation, Residential | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Fair Value | 143,633 | |
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Unrealized Losses | (785) | |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Fair Value | 15,794 | |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Unrealized Losses | (52) | |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 159,427 | |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses | (837) | |
Private-label collateralized mortgage obligation, Residential | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Fair Value | 10,325 | 59 |
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Unrealized Losses | (481) | (1) |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Fair Value | 12,057 | 15,168 |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Unrealized Losses | (2,981) | (197) |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 22,382 | 15,227 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses | (3,462) | (198) |
Private-label collateralized mortgage obligation, Commercial | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Fair Value | 41,720 | 13,142 |
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Unrealized Losses | (806) | (177) |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Fair Value | 0 | 0 |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 41,720 | 13,142 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses | (806) | (177) |
Government sponsored student loan pools | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Fair Value | 22,615 | 62,938 |
Available-for-sale securities, continuous unrealized loss position, Less than 12 Months, Unrealized Losses | (1,772) | (1,317) |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Fair Value | 215,117 | 188,593 |
Available-for-sale securities, continuous unrealized loss position, 12 Months or Longer, Unrealized Losses | (16,944) | (5,174) |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 237,732 | 251,531 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses | $ (18,716) | $ (6,491) |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)issuersecurity | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)security | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Investment securities pledged for borrowings | $ 0 | $ 0 | |
Securities issued in an amount greater than 10% of shareholders' equity, number of issuers | issuer | 6 | ||
Securities issued in an amount greater than 10% of shareholders' equity, fair value | $ 343,000,000 | ||
Securities, continuous unrealized loss position, unrealized Losses | $ (23,847,000) | $ (7,703,000) | |
Number of securities whose estimated fair value declined | security | 33 | 33 | |
Decline in fair value from amortized cost, percent | 5.13% | 1.72% | |
Proceeds from sale of securities available-for-sale | $ 14,016,000 | $ 0 | |
Gain (loss) on sale of available-for-sale securities | 1,200,000 | 0 | |
Credit losses recognized in earnings | $ 0 | $ 0 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($)contract | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total gross loans held-for-investment | $ 685,974 | $ 670,813 | |
Total loans held-for-sale | 435,023 | 375,922 | |
Accrued interest | 2,300 | 2,200 | |
Deferred fees, net | 2,760 | 2,724 | |
Investment in TDRs | $ 1,700 | 1,800 | |
Loans modified as TDRs | contract | 0 | 0 | |
Loans modified as TDRs, subsequent default | contract | 0 | ||
Related party loans | $ 4,600 | 4,600 | |
Increase (decrease) in balance of related party loans | (20) | ||
Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total gross loans held-for-investment | $ 615,500 | $ 614,300 | |
Real Estate | CALIFORNIA | Financing Receivable | Credit Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percentage | 74.40% | 64.80% | |
Real Estate | ARIZONA | Financing Receivable | Credit Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percentage | 6.60% | 10.20% | |
Mortgage warehouse | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total gross loans held-for-investment | $ 486,600 | $ 405,000 | |
Proceeds from sale of mortgage loans | 21,700 | $ 63,900 | |
Total loans held-for-sale | $ 435,000 | $ 365,800 |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | $ 683,214 | $ 668,089 |
Deferred fees, net | 2,760 | 2,724 |
Total loans held-for-investment | 685,974 | 670,813 |
Allowance for loan losses | (6,558) | (6,191) |
Total loans held-for-investment, net | 679,416 | 664,622 |
Total loans held-for-sale | 435,023 | 375,922 |
Residential | Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | 51,596 | 39,247 |
Total loans held-for-investment | 486,600 | 405,000 |
Total loans held-for-sale | 435,000 | 365,800 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | 154 | 122 |
Reverse mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | 1,431 | 1,415 |
Real estate loans | Residential | One-to-four family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | 202,214 | 193,367 |
Real estate loans | Residential | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | 76,721 | 81,233 |
Real estate loans | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | 325,116 | 331,052 |
Real estate loans | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | 10,034 | 7,213 |
Commercial and industrial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans held-for-investment | $ 15,948 | $ 14,440 |
Loans - Allowance (Details)
Loans - Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for loan losses | $ 367 | $ 267 | ||
Ratio of the allowance for loan losses to gross loans held-for-investment | 0.96% | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,191 | 6,723 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 367 | 267 | ||
Ending balance | 6,558 | 6,990 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | $ 40 | $ 39 | ||
General portfolio allocation | 6,518 | 6,152 | ||
Total allowance for loan losses | 6,191 | 6,990 | 6,558 | 6,191 |
Specifically evaluated | 8,775 | 15,137 | ||
Collectively evaluated | 674,439 | 652,952 | ||
Total gross loans held-for-investment | 683,214 | 668,089 | ||
Residential | One-to-four family | Real estate loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 2,051 | 1,848 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | (80) | 41 | ||
Ending balance | 1,971 | 1,889 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | 11 | 10 | ||
General portfolio allocation | 1,960 | 2,041 | ||
Total allowance for loan losses | 1,971 | 1,889 | 1,971 | 2,051 |
Specifically evaluated | 3,732 | 4,222 | ||
Collectively evaluated | 198,482 | 189,145 | ||
Total gross loans held-for-investment | 202,214 | 193,367 | ||
Residential | Multi-family | Real estate loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 653 | 483 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 36 | 28 | ||
Ending balance | 689 | 511 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | 0 | 0 | ||
General portfolio allocation | 689 | 653 | ||
Total allowance for loan losses | 689 | 511 | 689 | 653 |
Specifically evaluated | 0 | 0 | ||
Collectively evaluated | 76,721 | 81,233 | ||
Total gross loans held-for-investment | 76,721 | 81,233 | ||
Residential | Mortgage warehouse | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 250 | 229 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | (32) | 6 | ||
Ending balance | 218 | 235 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | 0 | 0 | ||
General portfolio allocation | 218 | 250 | ||
Total allowance for loan losses | 218 | 235 | 218 | 250 |
Specifically evaluated | 0 | 0 | ||
Collectively evaluated | 51,596 | 39,247 | ||
Total gross loans held-for-investment | 51,596 | 39,247 | ||
Commercial | Real estate loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 2,791 | 3,854 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 166 | 83 | ||
Ending balance | 2,957 | 3,937 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | 0 | 0 | ||
General portfolio allocation | 2,957 | 2,791 | ||
Total allowance for loan losses | 2,791 | 3,937 | 2,957 | 2,791 |
Specifically evaluated | 1,941 | 7,353 | ||
Collectively evaluated | 323,175 | 323,699 | ||
Total gross loans held-for-investment | 325,116 | 331,052 | ||
Commercial | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 312 | 156 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 114 | 100 | ||
Ending balance | 426 | 256 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | 0 | 0 | ||
General portfolio allocation | 426 | 312 | ||
Total allowance for loan losses | 312 | 256 | 426 | 312 |
Specifically evaluated | 2,252 | 2,714 | ||
Collectively evaluated | 13,696 | 11,726 | ||
Total gross loans held-for-investment | 15,948 | 14,440 | ||
Commercial | Construction | Real estate loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 96 | 98 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 162 | 10 | ||
Ending balance | 258 | 108 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | 0 | 0 | ||
General portfolio allocation | 258 | 96 | ||
Total allowance for loan losses | 258 | 108 | 258 | 96 |
Specifically evaluated | 0 | 0 | ||
Collectively evaluated | 10,034 | 7,213 | ||
Total gross loans held-for-investment | 10,034 | 7,213 | ||
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1 | 1 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 0 | (1) | ||
Ending balance | 1 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | 0 | 0 | ||
General portfolio allocation | 1 | 1 | ||
Total allowance for loan losses | 1 | 0 | 1 | 1 |
Specifically evaluated | 0 | 0 | ||
Collectively evaluated | 154 | 122 | ||
Total gross loans held-for-investment | 154 | 122 | ||
Reverse mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 37 | 54 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 1 | 0 | ||
Ending balance | 38 | 54 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Specifically evaluated impaired loans | 29 | 29 | ||
General portfolio allocation | 9 | 8 | ||
Total allowance for loan losses | $ 38 | $ 54 | 38 | 37 |
Specifically evaluated | 850 | 848 | ||
Collectively evaluated | 581 | 567 | ||
Total gross loans held-for-investment | $ 1,431 | $ 1,415 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with no related allowance - Unpaid Principal Balance | $ 9,251 | $ 15,863 | |
Impaired loans with no related allowance - Recorded Investment | 8,370 | 14,734 | |
Impaired loans with related allowance - Unpaid Principal Balance | 405 | 403 | |
Impaired loans with related allowance - Recorded Investment | 405 | 403 | |
Impaired loans - Unpaid Principal Balance | 9,656 | 16,266 | |
Impaired loans - Recorded Investment | 8,775 | 15,137 | |
Impaired loans - Related Allowance | 40 | 39 | |
Impaired loans with no related allowance - Average Recorded Investment | 8,512 | $ 15,103 | |
Impaired loans with no related allowance - Interest Income Recognized | 89 | 197 | |
Impaired loans with related allowance - Average Recorded Investment | 404 | 438 | |
Impaired loans with related allowance - Interest Income Recognized | 1 | 0 | |
Impaired loans - Average Recorded Investment | 8,916 | 15,541 | |
Impaired loans - Interest Income Recognized | 90 | 197 | |
Reverse mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with no related allowance - Unpaid Principal Balance | 511 | 510 | |
Impaired loans with no related allowance - Recorded Investment | 511 | 511 | |
Impaired loans with related allowance - Unpaid Principal Balance | 339 | 337 | |
Impaired loans with related allowance - Recorded Investment | 339 | 337 | |
Impaired loans - Related Allowance | 29 | 29 | |
Impaired loans with no related allowance - Average Recorded Investment | 511 | 798 | |
Impaired loans with no related allowance - Interest Income Recognized | 0 | 0 | |
Impaired loans with related allowance - Average Recorded Investment | 338 | 430 | |
Impaired loans with related allowance - Interest Income Recognized | 0 | 0 | |
Real estate loans | Residential | One-to-four family | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with no related allowance - Unpaid Principal Balance | 4,315 | 4,792 | |
Impaired loans with no related allowance - Recorded Investment | 3,666 | 4,156 | |
Impaired loans with related allowance - Unpaid Principal Balance | 66 | 66 | |
Impaired loans with related allowance - Recorded Investment | 66 | 66 | |
Impaired loans - Related Allowance | 11 | 10 | |
Impaired loans with no related allowance - Average Recorded Investment | 3,731 | 3,539 | |
Impaired loans with no related allowance - Interest Income Recognized | 26 | 47 | |
Impaired loans with related allowance - Average Recorded Investment | 66 | 8 | |
Impaired loans with related allowance - Interest Income Recognized | 1 | 0 | |
Real estate loans | Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with no related allowance - Unpaid Principal Balance | 1,941 | 7,632 | |
Impaired loans with no related allowance - Recorded Investment | 1,941 | 7,353 | |
Impaired loans with no related allowance - Average Recorded Investment | 1,941 | 7,878 | |
Impaired loans with no related allowance - Interest Income Recognized | 21 | 97 | |
Commercial and industrial | Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with no related allowance - Unpaid Principal Balance | 2,484 | 2,929 | |
Impaired loans with no related allowance - Recorded Investment | 2,252 | $ 2,714 | |
Impaired loans with no related allowance - Average Recorded Investment | 2,329 | 2,888 | |
Impaired loans with no related allowance - Interest Income Recognized | $ 42 | $ 53 |
Loans - Aging Analysis (Details
Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | $ 9,205 | $ 6,971 |
Loans Receivable, Current | 674,009 | 661,118 |
Total gross loans held-for-investment | 683,214 | 668,089 |
Loans Receivable, Nonaccruing | 5,126 | 5,909 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 3,587 | 3,573 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 2,804 | 96 |
Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 2,814 | 3,302 |
Residential | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Loans Receivable, Current | 51,596 | 39,247 |
Total gross loans held-for-investment | 51,596 | 39,247 |
Loans Receivable, Nonaccruing | 0 | 0 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
Residential | Mortgage warehouse | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Residential | Mortgage warehouse | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Residential | Mortgage warehouse | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Loans Receivable, Current | 154 | 122 |
Total gross loans held-for-investment | 154 | 122 |
Loans Receivable, Nonaccruing | 0 | 0 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
Consumer and other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Consumer and other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Consumer and other | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Reverse mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Loans Receivable, Current | 1,431 | 1,415 |
Total gross loans held-for-investment | 1,431 | 1,415 |
Loans Receivable, Nonaccruing | 850 | 848 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
Reverse mortgage | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Reverse mortgage | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Reverse mortgage | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Residential | One-to-four family | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 9,205 | 6,971 |
Loans Receivable, Current | 193,009 | 186,396 |
Total gross loans held-for-investment | 202,214 | 193,367 |
Loans Receivable, Nonaccruing | 3,478 | 3,963 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
Real estate loans | Residential | One-to-four family | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 3,587 | 3,573 |
Real estate loans | Residential | One-to-four family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 2,804 | 96 |
Real estate loans | Residential | One-to-four family | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 2,814 | 3,302 |
Real estate loans | Residential | Multi-family | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Loans Receivable, Current | 76,721 | 81,233 |
Total gross loans held-for-investment | 76,721 | 81,233 |
Loans Receivable, Nonaccruing | 0 | 0 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
Real estate loans | Residential | Multi-family | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Residential | Multi-family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Residential | Multi-family | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Loans Receivable, Current | 325,116 | 331,052 |
Total gross loans held-for-investment | 325,116 | 331,052 |
Loans Receivable, Nonaccruing | 0 | 0 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
Real estate loans | Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Commercial | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Commercial | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Loans Receivable, Current | 10,034 | 7,213 |
Total gross loans held-for-investment | 10,034 | 7,213 |
Loans Receivable, Nonaccruing | 0 | 0 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
Real estate loans | Commercial | Construction | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Commercial | Construction | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Real estate loans | Commercial | Construction | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Commercial and industrial | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Loans Receivable, Current | 15,948 | 14,440 |
Total gross loans held-for-investment | 15,948 | 14,440 |
Loans Receivable, Nonaccruing | 798 | 1,098 |
Loans Receivable 89 Days and Accruing | 0 | 0 |
Commercial and industrial | Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Commercial and industrial | Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | 0 | 0 |
Commercial and industrial | Commercial | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Receivable, Past Due | $ 0 | $ 0 |
Loans - Credit Quality Indicato
Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | $ 683,214 | $ 668,089 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 667,976 | 652,052 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 8,658 | 8,513 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 6,580 | 7,524 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Residential | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 51,596 | 39,247 |
Residential | Mortgage warehouse | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 51,596 | 39,247 |
Residential | Mortgage warehouse | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Residential | Mortgage warehouse | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Residential | Mortgage warehouse | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 154 | 122 |
Consumer and other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 154 | 122 |
Consumer and other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Consumer and other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Consumer and other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Reverse mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 1,431 | 1,415 |
Reverse mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 444 | 435 |
Reverse mortgage | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 137 | 132 |
Reverse mortgage | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 850 | 848 |
Reverse mortgage | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Residential | One-to-four family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 202,214 | 193,367 |
Real estate loans | Residential | One-to-four family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 198,736 | 189,405 |
Real estate loans | Residential | One-to-four family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Residential | One-to-four family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 3,478 | 3,962 |
Real estate loans | Residential | One-to-four family | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Residential | Multi-family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 76,721 | 81,233 |
Real estate loans | Residential | Multi-family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 76,721 | 81,233 |
Real estate loans | Residential | Multi-family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Residential | Multi-family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Residential | Multi-family | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 325,116 | 331,052 |
Real estate loans | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 316,595 | 322,671 |
Real estate loans | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 8,521 | 8,381 |
Real estate loans | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Commercial | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 10,034 | 7,213 |
Real estate loans | Commercial | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 10,034 | 7,213 |
Real estate loans | Commercial | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Commercial | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Real estate loans | Commercial | Construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Commercial and industrial | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 15,948 | 14,440 |
Commercial and industrial | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 13,696 | 11,726 |
Commercial and industrial | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 0 | 0 |
Commercial and industrial | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | 2,252 | 2,714 |
Commercial and industrial | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans held-for-investment | $ 0 | $ 0 |
FHLB Advances and Other Borro_3
FHLB Advances and Other Borrowings - Schedule of FHLB Advances (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Amount outstanding at period-end | $ 30,000 | $ 49,000 |
Weighted average interest rate at period-end | 0.21% | 1.66% |
Maximum month-end balance during the period | $ 115,000 | $ 218,000 |
Average balance outstanding during the period | $ 63,934 | $ 28,205 |
Weighted average interest rate during the period | 1.45% | 1.94% |
FHLB Advances and Other Borro_4
FHLB Advances and Other Borrowings - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)bank | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt Disclosure [Abstract] | |||
FHLB advances, leverage ratio, maximum | 35.00% | 35.00% | |
FHLB advances, collateral pledged | $ 1,000,000,000 | $ 875,900,000 | |
FHLB advances, unused borrowing capacity | 643,800,000 | 554,600,000 | |
FHLB advances, settled | $ 64,000,000 | ||
FHLB advances, term | 5 years | ||
Gain (loss) on extinguishment of debt | $ 925,000 | $ 0 | |
Short-term Debt [Line Items] | |||
Federal funds purchased, maximum borrowing capacity | $ 32,000,000 | ||
Number of correspondent banks | bank | 3 | ||
Federal funds purchased, amount outstanding | $ 0 | 0 | |
Federal Reserve Bank Advances | |||
Short-term Debt [Line Items] | |||
FRB advances, collateral pledged | 7,600,000 | 10,100,000 | |
FRB advances, current borrowing capacity | 5,800,000 | ||
FRB advances, amount outstanding | $ 0 | $ 0 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | Jan. 29, 2016 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Outstanding principal balance | $ 0 | $ 3,714 | |
Term Loan | 2.60% Note Payable Due January 29, 2021 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 8,000 | ||
Interest rate | 2.60% | ||
Outstanding principal balance | $ 3,700 | ||
Minimum | Term Loan | 2.60% Note Payable Due January 29, 2021 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.00% |
Subordinated Debentures, Net (D
Subordinated Debentures, Net (Details) - Subordinated Debentures - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Jan. 31, 2005 | Jul. 31, 2001 | |
Debt Instrument [Line Items] | |||
Interest payments, deferment period | 5 years | ||
Trust One | |||
Debt Instrument [Line Items] | |||
Minority interest percentage | 3.00% | ||
Trust Two | |||
Debt Instrument [Line Items] | |||
Minority interest percentage | 3.00% | ||
Trust One | 2001 Subordinated Debentures Maturing July 25, 2031 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 12.5 | ||
Effective interest rate | 5.51% | ||
Redemption price, percentage | 100.00% | ||
Trust One | 2001 Subordinated Debentures Maturing July 25, 2031 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.76% | 375.00% | |
Trust Two | 2005 Subordinated Debentures Maturing March 15, 2035 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 3 | ||
Redemption price, percentage | 100.00% | ||
Trust Two | 2005 Subordinated Debentures Maturing March 15, 2035 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.74% | 185.00% | |
Effective interest rate | 2.59% |
Derivative and Hedging Activi_3
Derivative and Hedging Activities - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)instrument | Dec. 31, 2012USD ($) | |
Cash flow hedge interest rate floor | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of derivative instruments | instrument | 20 | ||
Derivative, notional amount | $ 400 | ||
Derivative, notional amount sold | $ 200 | ||
Upfront fee paid to counterparty | $ 20.8 | ||
Proceeds from sale of derivative | 13 | ||
Gain (loss) on sale of derivatives | $ 8.4 | ||
Recognition period for net gain on sale of derivative | 4 years 1 month 6 days | ||
Cash flow hedge interest rate cap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Upfront fee paid to counterparty | $ 2.5 | ||
Cap Agreement Expiring July 25, 2022 | Cash flow hedge interest rate cap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | 12.5 | ||
Cap Agreement Expiring March 15, 2022 | Cash flow hedge interest rate cap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 3 | ||
Fed Funds Rate | Cash flow hedge interest rate floor | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Floor interest rate | 2.50% | ||
London Interbank Offered Rate (LIBOR) | Cash flow hedge interest rate floor | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Floor interest rate | 2.25% | 2.25% | |
London Interbank Offered Rate (LIBOR) | Cap Agreement Expiring July 25, 2022 | Cash flow hedge interest rate cap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cap interest rate | 0.75% | ||
London Interbank Offered Rate (LIBOR) | Cap Agreement Expiring March 15, 2022 | Cash flow hedge interest rate cap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cap interest rate | 0.50% |
Derivative and Hedging Activi_4
Derivative and Hedging Activities - Fair Value by Balance Sheet Location (Details) - Derivatives designated as hedging instruments - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash flow hedge interest rate floor | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 33,445 | $ 23,054 |
Cash flow hedge interest rate cap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 61 | $ 386 |
Derivative and Hedging Activi_5
Derivative and Hedging Activities - Amount of Gain (Loss) Recognized in OCI and Reclassified into Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | $ 23,466 | $ (46) |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 171 | 0 |
Estimated net derivative gain included in OCI to be reclassified into earnings | $ 4,400 | |
Estimated time for net derivative gain included in OCI to be reclassified into earnings | 12 months | |
Cash Flow Hedge Interest Rate Floor 1 | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | $ 6,096 | 16 |
Cash Flow Hedge Interest Rate Floor 2 | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | 17,666 | 14 |
Cash flow hedge interest rate cap | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | (280) | (113) |
Interest income - Other interest earning assets | Cash Flow Hedge Interest Rate Floor 1 | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 125 | (11) |
Interest income - Securities | Cash Flow Hedge Interest Rate Floor 2 | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 117 | (10) |
Interest expense - Subordinated debentures | Cash flow hedge interest rate cap | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | $ (55) | $ (16) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Amount | ||
Statutory federal tax | $ 1,295 | $ 2,821 |
State tax, net of federal benefit | 494 | 1,018 |
Tax credits | (56) | (43) |
Other items, net | 41 | 202 |
Actual tax expense | $ 1,774 | $ 3,998 |
Rate | ||
Statutory federal tax | 21.00% | 21.00% |
State tax, net of federal benefit | 8.00% | 7.60% |
Tax credits | (0.90%) | (0.30%) |
Other items, net | 0.70% | 1.50% |
Actual tax expense | 28.80% | 29.80% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 1,774 | $ 3,998 | |
Effective tax rate | 28.80% | 29.80% | |
Deferred tax liabilities | $ 4,600 | $ 400 |
Commitments and Contingencies
Commitments and Contingencies - Off-Balance Sheet Items (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total credit extension commitments | $ 61,886 | $ 48,088 |
Allowance for commitments | 200 | 100 |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total credit extension commitments | 61,231 | 47,433 |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total credit extension commitments | $ 655 | $ 655 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 199 | $ 19 | |||
Unrecognized stock-based compensation expense related to stock options | $ 800 | ||||
Period unrecognized expenses is expected to be recognized | 3 years 4 months 24 days | ||||
2018 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 1,596,753 | ||||
2010 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 0 | 730,784 | |||
Award vesting rights, percentage, change in control | 100.00% |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Compensation Plans (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Stock options outstanding, number of options, balance (in shares) | shares | 917,857 |
Stock options outstanding, number of options, granted (in shares) | shares | 3,456 |
Stock options outstanding, number of options, exercised (in shares) | shares | (1,250) |
Stock options outstanding, number of options, forfeited/expired (in shares) | shares | (3,636) |
Stock options outstanding, number of options, balance (in shares) | shares | 916,427 |
Stock options outstanding, weighted average remaining contractual life | 4 years 1 month 6 days |
Stock options outstanding, aggregate intrinsic value | $ | $ 3,249 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Stock options, weighted average exercise price, balance (in dollars per share) | $ / shares | $ 7.54 |
Stock options, weighted average exercise price, granted (in dollars per share) | $ / shares | 14.89 |
Stock options, weighted average exercise price, exercised (in dollars per share) | $ / shares | 12 |
Stock options, weighted average exercise price, forfeited/expired (in dollars per share) | $ / shares | 11.67 |
Stock options, weighted average exercise price, balance (in dollars per share) | $ / shares | $ 7.20 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Stock options outstanding, number of options, exercisable (in shares) | shares | 681,909 |
Stock options outstanding, weighted average exercise price, exercisable (in dollars per share) | $ / shares | $ 4.97 |
Stock options outstanding, weighted average remaining contractual life, exercisable | 2 years 3 months 18 days |
Stock options outstanding, aggregate intrinsic value, exercisable | $ | $ 3,246 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Stock options outstanding, number of options, vested or expected to vest (in shares) | shares | 882,558 |
Stock options outstanding, weighted average exercise price, vested or expected to vest (in dollars per share) | $ / shares | $ 7.25 |
Stock options outstanding, weighted average remaining contractual life, vested or expected to vest | 3 years 10 months 24 days |
Stock options outstanding, aggregate intrinsic value, vested or expected to vest | $ | $ 3,249 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units Activity (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Weighted-Average Grant Date Fair Value Per Share | |
Period unrecognized expenses is expected to be recognized | 3 years 4 months 24 days |
Restricted Stock Units | |
Number of Shares | |
Beginning balance (in shares) | shares | 82,627 |
Granted (in shares) | shares | 1,175 |
Canceled or Forfeited (in shares) | shares | (3,944) |
Ending balance (in shares) | shares | 79,858 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 16.09 |
Granted (in dollars per share) | $ / shares | 14.89 |
Canceled or Forfeited (in dollars per share) | $ / shares | 16.09 |
Ending balance (in dollars per share) | $ / shares | $ 16.07 |
Unrecognized stock-based compensation expense | $ | $ 0.9 |
Period unrecognized expenses is expected to be recognized | 3 years |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
The Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio, amount | $ 244,726 | $ 240,135 |
Tier 1 leverage ratio | 10.98% | 11.23% |
Tier 1 leverage ratio, minimum capital adequacy, amount | $ 89,127 | $ 85,501 |
Tier 1 leverage ratio, minimum capital adequacy | 4.00% | 4.00% |
Common equity tier 1 capital ratio, amount | $ 229,226 | $ 224,635 |
Common equity tier 1 capital ratio | 23.75% | 24.52% |
Common equity tier 1 capital ratio, minimum capital adequacy, amount | $ 43,436 | $ 41,233 |
Common equity tier 1 capital ratio, minimum capital adequacy | 4.50% | 4.50% |
Tier 1 risk-based capital ratio, amount | $ 244,726 | $ 240,135 |
Tier 1 risk-based capital ratio | 25.35% | 26.21% |
Tier 1 risk-based capital ratio, minimum capital adequacy, amount | $ 57,915 | $ 54,978 |
Tier 1 risk-based capital ratio, minimum capital adequacy | 6.00% | 6.00% |
Total risk-based capital ratio, amount | $ 251,438 | $ 246,447 |
Total risk-based capital ratio | 26.05% | 26.90% |
Total risk-based capital ratio, minimum capital adequacy, amount | $ 77,219 | $ 73,304 |
Total risk-based capital ratio, minimum capital adequacy | 8.00% | 8.00% |
The Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio, amount | $ 230,056 | $ 224,605 |
Tier 1 leverage ratio | 10.33% | 10.52% |
Tier 1 leverage ratio, minimum capital adequacy, amount | $ 89,096 | $ 85,399 |
Tier 1 leverage ratio, minimum capital adequacy | 4.00% | 4.00% |
Tier 1 leverage ratio, to be well capitalized, amount | $ 111,371 | $ 106,749 |
Tier 1 leverage ratio, to be well capitalized | 5.00% | 5.00% |
Common equity tier 1 capital ratio, amount | $ 230,056 | $ 224,605 |
Common equity tier 1 capital ratio | 23.86% | 24.55% |
Common equity tier 1 capital ratio, minimum capital adequacy, amount | $ 43,398 | $ 41,163 |
Common equity tier 1 capital ratio, minimum capital adequacy | 4.50% | 4.50% |
Common equity tier 1 capital ratio, to be well capitalized, amount | $ 62,686 | $ 59,458 |
Common equity tier 1 capital ratio, to be well capitalized | 6.50% | 6.50% |
Tier 1 risk-based capital ratio, amount | $ 230,056 | $ 224,605 |
Tier 1 risk-based capital ratio | 23.86% | 24.55% |
Tier 1 risk-based capital ratio, minimum capital adequacy, amount | $ 57,864 | $ 54,884 |
Tier 1 risk-based capital ratio, minimum capital adequacy | 6.00% | 6.00% |
Tier 1 risk-based capital ratio, to be well capitalized, amount | $ 77,151 | $ 73,179 |
Tier 1 risk-based capital ratio, to be well capitalized | 8.00% | 8.00% |
Total risk-based capital ratio, amount | $ 236,768 | $ 230,917 |
Total risk-based capital ratio | 24.55% | 25.24% |
Total risk-based capital ratio, minimum capital adequacy, amount | $ 77,151 | $ 73,179 |
Total risk-based capital ratio, minimum capital adequacy | 8.00% | 8.00% |
Total risk-based capital ratio, to be well capitalized, amount | $ 96,439 | $ 91,474 |
Total risk-based capital ratio, to be well capitalized | 10.00% | 10.00% |
Fair Value - Recurring Basis (D
Fair Value - Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Securities available-for-sale | $ 964,317 | $ 897,766 |
Derivative assets | 33,506 | 23,440 |
Recurring Basis | ||
Assets | ||
Securities available-for-sale | 964,317 | 897,766 |
Derivative assets | 33,506 | 23,440 |
Total | 997,823 | 921,206 |
Recurring Basis | Level 1 | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Derivative assets | 0 | 0 |
Total | 0 | 0 |
Recurring Basis | Level 2 | ||
Assets | ||
Securities available-for-sale | 964,317 | 897,766 |
Derivative assets | 33,506 | 23,440 |
Total | 997,823 | 921,206 |
Recurring Basis | Level 3 | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Derivative assets | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value - Non-Recurring Basi
Fair Value - Non-Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Impaired loans | $ 681,447 | $ 666,272 |
Other real estate owned | 0 | 128 |
Level 1 | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 2 | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 3 | ||
Assets | ||
Impaired loans | 681,447 | 666,272 |
Non-recurring basis | ||
Assets | ||
Other real estate owned | 128 | |
Total | 492 | |
Non-recurring basis | Level 1 | ||
Assets | ||
Total | 0 | |
Non-recurring basis | Level 2 | ||
Assets | ||
Other real estate owned | 0 | |
Total | 0 | |
Non-recurring basis | Level 3 | ||
Assets | ||
Other real estate owned | 128 | |
Total | 492 | |
Reverse mortgage | Level 3 | ||
Assets | ||
Impaired loans | 310 | |
Reverse mortgage | Non-recurring basis | ||
Assets | ||
Impaired loans | 310 | 308 |
Reverse mortgage | Non-recurring basis | Level 1 | ||
Assets | ||
Impaired loans | 0 | 0 |
Reverse mortgage | Non-recurring basis | Level 2 | ||
Assets | ||
Impaired loans | 0 | 0 |
Reverse mortgage | Non-recurring basis | Level 3 | ||
Assets | ||
Impaired loans | $ 310 | 308 |
Real estate loans | Residential | Non-recurring basis | One-to-four family | ||
Assets | ||
Impaired loans | 56 | |
Real estate loans | Residential | Non-recurring basis | Level 1 | One-to-four family | ||
Assets | ||
Impaired loans | 0 | |
Other real estate owned | 0 | |
Real estate loans | Residential | Non-recurring basis | Level 2 | One-to-four family | ||
Assets | ||
Impaired loans | 0 | |
Real estate loans | Residential | Non-recurring basis | Level 3 | One-to-four family | ||
Assets | ||
Impaired loans | $ 56 |
Fair Value - Valuation Methodol
Fair Value - Valuation Methodology and Unobservable Inputs (Details) $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral-dependent impaired loans | $ 681,447 | $ 666,272 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral-dependent impaired loans | $ 681,447 | $ 666,272 |
Collateral-Dependent Impaired Loans | Level 3 | Selling cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.080 | |
Collateral-Dependent Impaired Loans | Market comparable properties | Level 3 | Marketability discount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.100 | |
Collateral-Dependent Impaired Loans | Weighted Average | Level 3 | Selling cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.080 | |
Collateral-Dependent Impaired Loans | Weighted Average | Market comparable properties | Level 3 | Marketability discount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.100 | |
Reverse mortgage | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral-dependent impaired loans | $ 310 |
Fair Value - Fair Value by Bala
Fair Value - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Cash and due from banks, Carrying Amount | $ 2,778 | $ 1,579 |
Cash and due from banks, Fair Value | 2,778 | 1,579 |
Interest earning deposits, Carrying Amount | 163,422 | 132,025 |
Loans held-for-investment, net, Carrying Amount | 679,416 | 664,622 |
Loans held-for-investment, net, Fair Value | 681,447 | 666,272 |
Loans held-for-sale, Carrying Amount | 435,023 | 375,922 |
Loans held-for-sale, Fair Value | 435,023 | 376,126 |
FHLB and FRB stock, Carrying Amount | 10,269 | 10,264 |
Accrued interest receivable, Carrying Amount | 6,344 | 5,950 |
Accrued interest receivable, Fair Value | 6,344 | 5,950 |
Financial liabilities: | ||
Deposits, Carrying Amount | 2,002,957 | 1,814,654 |
Deposits, Carrying Amount | 1,814,654 | |
Deposits, Fair Value | 2,064,700 | 1,826,100 |
Federal home loan bank advances | 30,000 | 49,000 |
FHLB advances, Fair Value | 30,000 | |
Notes payable, Carrying Amount | 0 | 3,714 |
Notes payable, Fair Value | 3,714 | |
Subordinated debentures, Carrying Amount | 15,820 | 15,816 |
Subordinated debentures, Fair Value | 14,982 | 15,203 |
Accrued interest payable, Carrying Amount | 215 | 559 |
Accrued interest payable, Fair Value | 215 | 559 |
Interest earning deposits | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 163,422 | 132,025 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 2,778 | 1,579 |
Loans held-for-investment, net, Fair Value | 0 | 0 |
Loans held-for-sale, Fair Value | 0 | 0 |
Accrued interest receivable, Fair Value | 3 | 86 |
Financial liabilities: | ||
Deposits, Fair Value | 0 | 0 |
FHLB advances, Fair Value | 0 | |
Notes payable, Fair Value | 0 | |
Subordinated debentures, Fair Value | 0 | 0 |
Accrued interest payable, Fair Value | 0 | 0 |
Level 1 | Interest earning deposits | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 163,422 | 132,025 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 0 | 0 |
Loans held-for-investment, net, Fair Value | 0 | 0 |
Loans held-for-sale, Fair Value | 435,023 | 376,126 |
Accrued interest receivable, Fair Value | 3,480 | 3,643 |
Financial liabilities: | ||
Deposits, Fair Value | 2,064,700 | 1,826,100 |
FHLB advances, Fair Value | 30,000 | |
Notes payable, Fair Value | 3,714 | |
Subordinated debentures, Fair Value | 14,982 | 15,203 |
Accrued interest payable, Fair Value | 215 | 559 |
Level 2 | Interest earning deposits | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 0 | 0 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 0 | 0 |
Loans held-for-investment, net, Fair Value | 681,447 | 666,272 |
Loans held-for-sale, Fair Value | 0 | 0 |
Accrued interest receivable, Fair Value | 2,861 | 2,221 |
Financial liabilities: | ||
Deposits, Fair Value | 0 | 0 |
FHLB advances, Fair Value | 0 | |
Notes payable, Fair Value | 0 | |
Subordinated debentures, Fair Value | 0 | 0 |
Accrued interest payable, Fair Value | 0 | 0 |
Level 3 | Interest earning deposits | ||
Financial assets: | ||
Cash and due from banks, Fair Value | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic | ||
Net income | $ 4,393 | $ 9,436 |
Weighted average common shares outstanding (in shares) | 18,668 | 17,818 |
Basic earnings per common share (in dollars per share) | $ 0.24 | $ 0.53 |
Diluted | ||
Net income | $ 4,393 | $ 9,436 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 18,668 | 17,818 |
Add: Dilutive effects of assumed exercise of stock options (in shares) | 449 | 440 |
Average shares and dilutive potential common shares (in shares) | 19,117 | 18,258 |
Dilutive earnings per common share (in dollars per share) | $ 0.23 | $ 0.52 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Share awards excluded from computation of diluted earnings per share, because they were anti-dilutive (in shares) | 235 | 110 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | May 05, 2020USD ($)contractsectorcustome | Mar. 31, 2020USD ($)contract | Mar. 31, 2019contract | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | ||||
Number of loans modified | contract | 0 | 0 | ||
Loan balance | $ 683,214 | $ 668,089 | ||
Payment Deferral | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of loans modified | contract | 33 | |||
Loan balance | $ 118,700 | |||
Additional customers in process of modification | custome | 37 | |||
Loan in process | $ 34,000 | |||
Minimum | Payment Deferral | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Payment deferral period | 2 months | |||
Maximum | Payment Deferral | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Payment deferral period | 3 months | |||
Hospitality And Retail | Commercial Real Estate | Payment Deferral | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Loan balance | $ 91,100 | |||
Number of sectors affected | sector | 2 |