Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | RBB | |
Entity Registrant Name | RBB BANCORP | |
Entity Central Index Key | 0001499422 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 19,739,281 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38149 | |
Entity Tax Identification Number | 27-2776416 | |
Entity Incorporation State Country Code | CA | |
Entity Address, Address Line One | 1055 Wilshire Blvd. | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90017 | |
City Area Code | 213 | |
Local Phone Number | 627-9888 | |
Title of each class | Common Stock, No Par Value | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 285,667 | $ 114,763 |
Federal funds sold and other cash equivalents | 75,300 | 67,000 |
Cash and cash equivalents | 360,967 | 181,763 |
Interest-earning deposits in other financial institutions | 600 | 600 |
Securities: | ||
Available for sale | 126,294 | 126,069 |
Held to maturity (fair value of $8,154 and $8,632 at March 31, 2020 and December 31, 2019, respectively) | 7,825 | 8,332 |
Mortgage loans held for sale | 52,096 | 108,194 |
Loans held for investment: | ||
Real estate | 2,051,767 | 1,852,206 |
Commercial and other | 353,722 | 349,391 |
Total loans | 2,405,489 | 2,201,597 |
Unaccreted discount on acquired loans | (5,065) | (5,067) |
Deferred loan (fees) costs, net | (442) | 404 |
Total loans, net of deferred loan fees | 2,399,982 | 2,196,934 |
Allowance for loan losses | (20,130) | (18,816) |
Net loans | 2,379,852 | 2,178,118 |
Premises and equipment | 24,472 | 16,813 |
Federal Home Loan Bank (FHLB) stock | 15,630 | 15,000 |
Net deferred tax assets | 2,326 | |
Other real estate owned (OREO) | 293 | 293 |
Cash surrender value of life insurance (BOLI) | 34,544 | 34,353 |
Goodwill | 69,790 | 58,563 |
Servicing assets | 16,826 | 17,083 |
Core deposit intangibles | 6,234 | 6,100 |
Accrued interest and other assets | 33,230 | 34,928 |
Total assets | 3,128,653 | 2,788,535 |
Deposits: | ||
Noninterest-bearing demand | 504,324 | 458,763 |
Savings, NOW and money market accounts | 571,870 | 537,490 |
Time deposits under $100,000 | 245,827 | 257,362 |
Time deposits $100,000 and over | 1,113,960 | 995,323 |
Total deposits | 2,435,981 | 2,248,938 |
Reserve for unfunded commitments | 979 | 826 |
Net deferred tax liabilities | 312 | |
FHLB advances | 150,000 | 0 |
Long-term debt, net of debt issuance costs | 104,135 | 104,049 |
Subordinated debentures | 14,120 | 9,673 |
Accrued interest and other liabilities | 15,133 | 17,359 |
Total liabilities | 2,720,660 | 2,380,845 |
Commitments and contingencies - Note 13 | ||
Shareholders' equity: | ||
Preferred Stock - 100,000,000 shares authorized, no par value; none outstanding | ||
Common Stock - 100,000,000 shares authorized, no par value; 19,739,280 shares issued and outstanding at March 31, 2020 and 20,030,866 shares at December 31, 2019 | 286,350 | 290,395 |
Additional paid-in capital | 4,833 | 4,938 |
Retained earnings | 116,149 | 112,046 |
Non-controlling interest | 72 | 72 |
Accumulated other comprehensive income, net | 589 | 239 |
Total shareholders’ equity | 407,993 | 407,690 |
Total liabilities and shareholders’ equity | $ 3,128,653 | $ 2,788,535 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 8,154 | $ 8,632 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, par value | ||
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | ||
Common stock, shares issued | 19,739,280 | 20,030,866 |
Common stock, shares outstanding | 19,739,280 | 20,030,866 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 32,276 | $ 35,839 |
Interest on interest-earning deposits | 451 | 468 |
Interest on investment securities | 821 | 588 |
Dividend income on FHLB stock | 2 | 198 |
Interest on federal funds sold and other | 478 | 113 |
Total interest income | 34,028 | 37,206 |
Interest expense: | ||
Interest on savings deposits, now and money market accounts | 1,243 | 1,294 |
Interest on time deposits | 7,086 | 5,953 |
Interest on subordinated debentures and long-term debt | 1,956 | 1,933 |
Interest on other borrowed funds | 150 | 2,114 |
Total interest expense | 10,435 | 11,294 |
Net interest income | 23,593 | 25,912 |
Provision for loan losses | 1,945 | 550 |
Net interest income after provision for loan losses | 21,648 | 25,362 |
Noninterest income: | ||
Service charges, fees and other | 1,079 | 820 |
Gain on sale of loans | 2,711 | 2,198 |
Loan servicing fees, net of amortization | 592 | 840 |
Recoveries on loans acquired in business combinations | 42 | 6 |
Unrealized gain on equity investments | 147 | |
Increase in cash surrender value of life insurance | 191 | 191 |
Total noninterest income | 4,615 | 4,202 |
Noninterest expense: | ||
Salaries and employee benefits | 9,505 | 9,118 |
Occupancy and equipment expenses | 2,404 | 2,252 |
Data processing | 1,142 | 1,009 |
Legal and professional | 604 | 425 |
Office expenses | 323 | 336 |
Marketing and business promotion | 214 | 362 |
Insurance and regulatory assessments | 177 | 298 |
Core deposit premium | 357 | 388 |
OREO expenses | 14 | 81 |
Merger and conversion expenses | 403 | 71 |
Other expenses | 1,120 | 985 |
Total noninterest expense | 16,263 | 15,325 |
Income before income taxes | 10,000 | 14,239 |
Income tax expense | 3,252 | 3,859 |
Net income | $ 6,748 | $ 10,380 |
Net income per share | ||
Basic | $ 0.34 | $ 0.52 |
Diluted | 0.33 | 0.51 |
Cash dividends declared per common share | $ 0.12 | $ 0.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 6,748 | $ 10,380 |
Other comprehensive income: | ||
Unrealized gains on securities available for sale, Change in unrealized gains | 498 | 958 |
Unrealized gains on securities available for sale | 498 | 958 |
Related income tax effect, Change in unrealized gains | (148) | (284) |
Related income tax effect | (148) | (284) |
Total other comprehensive income | 350 | 674 |
Total comprehensive income | $ 7,098 | $ 11,054 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Non-Controlling Interest | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2018 | $ 374,621 | $ 288,610 | $ 5,659 | $ 81,618 | $ 72 | $ (1,338) |
Beginning balance, shares at Dec. 31, 2018 | 20,000,022 | |||||
Net income | 10,380 | 10,380 | ||||
Stock-based compensation | 231 | 231 | ||||
Cash dividend | (2,007) | (2,007) | ||||
Stock options exercised, net of expense recognized | 904 | $ 1,303 | (399) | |||
Stock options exercised, net of expense recognized, shares | 73,969 | |||||
Other comprehensive income, net of taxes | 674 | 674 | ||||
Ending balance at Mar. 31, 2019 | 384,803 | $ 289,913 | 5,491 | 89,991 | 72 | (664) |
Ending balance, shares at Mar. 31, 2019 | 20,073,991 | |||||
Beginning balance at Dec. 31, 2018 | $ 374,621 | $ 288,610 | 5,659 | 81,618 | 72 | (1,338) |
Beginning balance, shares at Dec. 31, 2018 | 20,000,022 | |||||
Stock options exercised, net of expense recognized, shares | 200,629 | |||||
Ending balance at Dec. 31, 2019 | $ 407,690 | $ 290,395 | 4,938 | 112,046 | 72 | 239 |
Ending balance, shares at Dec. 31, 2019 | 20,030,866 | 20,030,866 | ||||
Net income | $ 6,748 | 6,748 | ||||
Stock-based compensation | 161 | 161 | ||||
Cash dividend | (2,414) | (2,414) | ||||
Stock options exercised, net of expense recognized | $ 712 | $ 978 | (266) | |||
Stock options exercised, net of expense recognized, shares | 56,498 | 56,498 | ||||
Repurchase of common stock | $ (5,254) | $ (5,023) | (231) | |||
Repurchase of common stock, shares | (348,084) | |||||
Other comprehensive income, net of taxes | 350 | 350 | ||||
Ending balance at Mar. 31, 2020 | $ 407,993 | $ 286,350 | $ 4,833 | $ 116,149 | $ 72 | $ 589 |
Ending balance, shares at Mar. 31, 2020 | 19,739,280 | 19,739,280 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Operating activities | |||
Net income | $ 6,748,000 | $ 10,380,000 | |
Adjustments to reconcile net income to net cash from Operating activities: | |||
Depreciation and amortization of premises, and equipment | 522,000 | 481,000 | |
Net accretion of securities, loans, deposits, and other | (873,000) | (964,000) | |
Unrealized gain on equity securities | (147,000) | ||
Amortization of investment in affordable housing tax credits | 247,000 | 225,000 | |
Amortization of intangible assets | 1,441,000 | 1,187,000 | |
Provision for loan losses | 1,945,000 | 550,000 | $ 2,390,000 |
Stock-based compensation | 161,000 | 231,000 | |
Deferred tax benefit (expense) | 1,503,000 | (31,000) | |
Gain on sale of loans | (2,711,000) | (2,198,000) | |
Increase in cash surrender value of life insurance | (191,000) | (191,000) | |
Loans originated and purchased for sale | (30,423,000) | (41,348,000) | |
Proceeds from loans sold | 104,273,000 | 144,272,000 | |
Other items | (4,442,000) | (663,000) | |
Net cash provided by operating activities | 78,200,000 | 111,784,000 | |
Investing activities | |||
Increase in interest-earning deposits | (596,000) | ||
Securities available for sale: | |||
Purchases | (151,163,000) | ||
Maturities, prepayments and calls | 151,707,000 | 16,185,000 | |
Securities held to maturity: | |||
Maturities, prepayments and calls | 500,000 | 500,000 | |
Redemption of Federal Home Loan Bank stock | 1,751,000 | ||
Purchase of Federal Home Loan Bank stock and other equity securities, net | (621,000) | (1,007,000) | |
Purchase of investment in qualified affordable housing projects | (2,004,000) | ||
Net increase in loans | (45,668,000) | (20,438,000) | |
Net cash received in connection with acquisition | 6,634,000 | ||
Purchases of premises and equipment | (135,000) | (484,000) | |
Net cash used in investing activities | (40,750,000) | (4,089,000) | |
Financing activities | |||
Net decrease in demand deposits and savings accounts | (108,420,000) | (118,098,000) | |
Net increase in time deposits | 107,130,000 | 158,400,000 | |
Net decrease in short-term FHLB advances | (44,500,000) | ||
Net increase in long-term FHLB advances | 150,000,000 | ||
Cash dividends paid | (2,414,000) | (2,007,000) | |
Common stock repurchased, net of repurchased costs | (5,254,000) | ||
Exercise of stock options | 712,000 | 904,000 | 2,800,000 |
Net cash provided by (used in) financing activities | 141,754,000 | (5,301,000) | |
Net increase in cash and cash equivalents | 179,204,000 | 102,394,000 | |
Cash and cash equivalents at beginning of period | 181,763,000 | 147,685,000 | 147,685,000 |
Cash and cash equivalents at end of period | 360,967,000 | 250,079,000 | $ 181,763,000 |
Cash paid during the period: | |||
Interest paid | 8,643,000 | 2,350,000 | |
Non-cash investing and financing activities: | |||
Transfer from loans to other real estate owned | 955,000 | ||
Transfer of loans to held for sale, net | 15,041,000 | 33,633,000 | |
Loan to facilitate OREO | 1,025,000 | 412,000 | |
Net change in unrealized holding gain on securities available for sale | 350,000 | $ 674,000 | |
Additions to servicing assets | 827,000 | ||
Acquisition: | |||
Assets acquired, net of cash received | 183,524,000 | ||
Liabilities assumed | 201,385,000 | ||
Cash considerations | 32,885,000 | ||
Goodwill | $ 11,227,000 |
Business Description
Business Description | 3 Months Ended |
Mar. 31, 2020 | |
Business Description [Abstract] | |
Business Description | NOTE 1 - BUSINESS DESCRIPTION RBB Bancorp (“RBB”) is a financial holding company registered under the Bank Holding Company Act of 1956, as amended. RBB Bancorp’s principal business is to serve as the holding company for its wholly-owned banking subsidiaries, Royal Business Bank ("Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as "the Company". RAM was formed to hold and manage problem assets acquired in business combinations. At March 31, 2020, the Company had total consolidated assets of $3.1 billion, gross consolidated loans (held for investment and held for sale) of $2.5 billion, total consolidated deposits of $2.4 billion and total consolidated stockholders' equity of $408.0 million. RBB’s common stock trades on the Nasdaq Global Select Market under the symbol “RBB”. The Bank provides business banking services to the Chinese-American communities in Los Angeles County, Orange County, Ventura County, Las Vegas, the New York City metropolitan area and the Chicago metropolitan area, including remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, Small Business Administration (“SBA”) 7A and 504 loans, mortgage loans, trade finance and a full range of depository accounts. The Company operates full-service banking offices in Arcadia, Cerritos, Diamond Bar, Irvine, Los Angeles, Monterey Park, Oxnard, Rowland Heights, San Gabriel, Silver Lake, Torrance, West Los Angeles, and Westlake Village, California; Las Vegas, Nevada; Manhattan, Brooklyn, Flushing, and Elmhurst, New York; and the Bridgeport and Chinatown areas of Chicago, Illinois. The Company’s primary source of revenue is providing loans to customers, who are predominantly small and middle-market businesses and individuals. The Company generates its revenue primarily from interest received on loans and leases and, to a lesser extent, from interest received on investment securities. The Company also derives income from noninterest sources, such as fees received in connection with various lending and deposit services, residential mortgage loan originations, loan servicing, gain on sales of loans and wealth management services. The Company’s principal expenses include interest expense on deposits and subordinated debentures, and operating expenses, such as salaries and employee benefits, occupancy and equipment, data processing, and income tax expense. The Company has completed six acquisitions from July 8, 2011 through March 31, 2020, including the acquisition of PGB Holdings Inc. (“PGBH”) and its wholly-owned subsidiary, Pacific Global Bank (“PGB”), which closed on January 10, 2020. PGB operated three branches in Chicago. See Note 3 – Acquisition, for more information about the PGBH acquisition transaction. All of the Company’s acquisitions have been accounted for using the acquisition method of accounting and, accordingly, the operating results of the acquired entities have been included in the consolidated financial statements from their respective acquisition dates. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2019, included in our Annual Report filed on Form 10-K for the fiscal year ended December 31, 2019 (our “2019 Annual Report”). Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It is reasonably possible our estimate of the allowance for loan losses and the fair value of mortgage servicing rights could change as actual results could differ from those estimates. Actual results could differ from those estimates. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements were compiled in accordance with the accounting policies set forth in Note 2 – Basis of Presentation and Summary of Significant Policies in our Consolidated Financial Statements as of and for the year ended December 31, 2019, included in our 2019 Annual Report. The accompanying consolidated unaudited financial statements reflect all adjustments consisting of normal recurring adjustments that, in the opinion of management, are necessary to reflect a fair statement of our consolidated financial condition, results of operations, and cash flows. The results of operations for acquired companies are included from the dates of acquisition. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020. The Financial Accounting Standards Board ("FASB") issues Accounting Standards Updates ("ASU" or “Update”) and Accounting Standards Codifications (“ASC”), which are the primary source of GAAP. Recent Accounting Pronouncements When RBB conducted its initial public offering (“IPO”) in 2017, we qualified as an emerging growth company (“EGC”). We will remain an EGC until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.0 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of our IPO, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the date on which we are deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We anticipate no longer qualifying as an EGC on January 1, 2023. EGCs are entitled to reduced regulatory and reporting requirements under the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Our revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. Accordingly, the majority of the Company’s revenues will not be affected. In addition, the standard does not materially impact the timing or measurement of the Company’s revenue recognition as it is consistent with the Company’s existing accounting for contracts within the scope of the standard. As an EGC, the Company adopted ASU 2014-09 as of January 1, 2019, utilizing the modified prospective approach. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements, as substantially all of the Company’s revenues are excluded from the scope of the new standard. Since there was no net income impact upon adoption of this ASU, a cumulative effect adjustment to opening retained earnings was not deemed necessary. See Note 20 (Revenue from Contracts with Customers) for more information. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) he amendments in this Update to be effective for interim periods beginning after December 15, 2021 and annual periods beginning after December 15, 2020, for an EGC. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instrument (Topic 326) , including subsequent amending ASUs The Company anticipates adopting this ASU 2016-13 on that date. In February 2019, the U.S. federal bank regulatory agencies approved a final rule modifying their regulatory capital rules and providing an option to phase in over a three year period the day-one adverse regulatory capital effects of ASU 2016-13. Additionally, in March 2020, the U.S. federal bank regulatory agencies issued an interim final rule that provides banking organizations an option to delay the estimated CECL impact on regulatory capital for an additional two years for a total transition period of up to five years to provide regulatory relief to banking organizations to better focus on supporting lending to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the novel coronavirus disease 2019 ("COVID-19") pandemic. As a result, entities will have the option to gradually phase in the full effect of CECL on regulatory capital over a five-year transition period. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement at a minimum In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In November 2019, the FASB issued ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), Codification Improvements—Share-Based Consideration Payable to a Customer 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," which provides temporary optional expedients to ease the financial reporting burdens of the expected market transition from London Interbank Offered Rate (“LIBOR”) to an alternative reference rate such as Secured Overnight Financing Rate (“SOFR”). The guidance was effective upon issuance and generally can be applied through December 31, 2022. Of the Company’s $2.3 billion in total gross loans as of December 31, 2019, approximately 25% have a LIBOR based reference rate. The Company has several LIBOR based debt issues, refer to Notes 9 and 10 of the Company’s consolidated financial statements included in this Form 10-Q. We are currently evaluating this guidance to determine the date of adoption and the impact on the Company. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 3 – ACQUISITION PGB Holdings, Inc. Acquisition: On January 10, 2020, the Company acquired all the assets and assumed all the liabilities of PGB Holdings, Inc. (“PGBH” or “PGB”) in exchange for cash of $32.9 million. PGBH operated three branches in the Chicago, Illinois metropolitan area. The Company acquired PGBH to strategically establish a presence in the Chicago area. Goodwill in the amount of $11.2 million was recognized in this acquisition. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill is not deductible for income tax purposes. The following table represents the assets acquired and liabilities assumed of PGBH as of January 10, 2020 and the fair value adjustments and amounts recorded by the Company in 2020 under the acquisition method of accounting: PGBH Fair Value Fair (dollars in thousands) Book Value Adjustments Value Assets acquired Cash and cash equivalents $ 17,033 $ — $ 17,033 Fed funds sold 8,300 — 8,300 Interest-bearing deposits in other financial Institutions 14,186 — 14,186 Loans, gross 172,443 715 173,158 Allowance for loan losses (2,265 ) 2,265 — Bank premises and equipment 6,394 1,639 8,033 Core deposit premium — 491 491 Investment in trust 155 — 155 Other assets 1,687 — 1,687 Total assets acquired $ 217,933 $ 5,110 $ 223,043 Liabilities assumed Deposits $ 187,393 $ 969 $ 188,362 Escrow Payable 4,277 — 4,277 Subordinated debentures 5,155 (763 ) 4,392 Deferred income taxes 1,016 1,588 2,604 Other liabilities 1,664 86 1,750 Total liabilities assumed 199,505 1,880 201,385 Excess of assets acquired over liabilities assumed 18,428 3,230 21,658 $ 217,933 $ 5,110 Cash paid 32,885 Goodwill recognized $ 11,227 The fair values are estimates and are subject to adjustment for up to one year after the merger date. The Company accounted for these transactions under the acquisition method of accounting in accordance with ASC 805, Business Combinations, which requires purchased assets and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The loan portfolio of PGBH was recorded at fair value at the date of acquisition with the assistance of third-party valuation. A valuation of PGBH’s loan portfolio was performed as of the acquisition date to assess the fair value of the loan portfolio. The loan portfolio was segmented into two groups; loans with credit deterioration and loans without credit deterioration, and then split further by loan type. The fair value was calculated on an individual loan basis using a discounted cash flow analysis. The discount rate utilized was based on a weighted average cost of capital, considering the cost of equity and cost of debt. Also factored into the fair value estimates were loss rates, recovery period and prepayment rates based on industry standards. The Company also determined the fair value of the core deposit intangible, securities and deposits with the assistance of third-party valuations. The core deposit intangible on non-maturing deposits was determined by evaluating the underlying characteristics of the deposit relationships, including customer attrition, deposit interest rates, service charge income, overhead expense and costs of alternative funding. Since the fair value of intangible assets are calculated as if they were stand-alone assets, the presumption is that a hypothetical buyer of the intangible asset would be able to take advantage of potential tax benefits resulting from the asset purchase. The value of the benefit is the present value over the period of the tax benefit, using the discount rate applicable to the asset. In determining the fair value of certificates of deposit, a discounted cash flow analysis was used, which involved present valuing the contractual payments over the remaining life of the certificates of deposit at market-based interest rates. For loans acquired from PGBH, the contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates were as follows: PGBH Acquired Loans Contractual amounts due $ 195,227 Cash flows not expected to be collected 5,176 Expected cash flows 190,051 Interest component of expected cash flows 16,893 Fair value of acquired loans $ 173,158 In accordance with U.S. GAAP, there was no carryover of the allowance for loan losses that had been previously recorded by PGBH. The operating results of the Company for the three months ended March 31, 2020 include the operating results of PGBH since its acquisition date. The following table presents the net interest and other income, net income and earnings per share as if the acquisition of PGBH was effective as of January 1, 2020. There were no material, nonrecurring adjustments to the pro forma net interest and other income, net income and earnings per share presented below: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Net interest and other income $ 28,442 $ 32,225 Net income 5,582 10,956 Basic earnings per share 0.28 0.55 Diluted earnings per share 0.28 0.54 The initial accounting for the PGBH acquisition is incomplete as of May 11, 2020, as the fair value analysis for income taxes is in process with the third-party consultant. Third-party acquisition related expenses are recognized as incurred and continue until the acquired system is converted and operational functions become fully integrated. The Company incurred third-party acquisition related expenses in the consolidated statements of income for the periods indicated in the Statements of Income in the expense item “Merger and conversion expenses”. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | NOTE 4 - INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of available for sale (“AFS”) securities and held to maturity (“HTM”) securities March 31, 2020 and December 31, 2019, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair March 31, 2020 Cost Gains Losses Value Available for sale Government agency securities $ 1,410 $ 16 $ — $ 1,426 SBA agency securities 4,565 87 (5 ) 4,647 Mortgage-backed securities- Government sponsored agencies 18,260 520 (8 ) 18,772 Collateralized mortgage obligations 11,036 183 — 11,219 Corporate debt securities 90,185 204 (159 ) 90,230 Total $ 125,456 $ 1,010 $ (172 ) $ 126,294 Held to maturity Municipal taxable securities $ 3,003 $ 158 $ — $ 3,161 Municipal securities 4,822 171 — 4,993 Total $ 7,825 $ 329 $ — $ 8,154 December 31, 2019 Available for sale Government agency securities $ 1,591 $ — $ (19 ) $ 1,572 SBA agency securities 4,671 42 (22 ) 4,691 Mortgage-backed securities- Government sponsored agencies 19,126 74 (29 ) 19,171 Collateralized mortgage obligations 11,641 38 (25 ) 11,654 Corporate debt securities 88,700 281 — 88,981 Total $ 125,729 $ 435 $ (95 ) $ 126,069 Held to maturity Municipal taxable securities $ 3,505 $ 147 $ — $ 3,652 Municipal securities 4,827 153 — 4,980 Total $ 8,332 $ 300 $ — $ 8,632 One security with a fair value of $608,000 and $627,000 at March 31, 2020 and December 31, 2019, respectively, was pledged to secure a local agency deposit. The amortized cost and fair value of the investment securities portfolio at March 31, 2020 and December 31, 2019 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Less than One Year More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Estimated Amortized Estimated Amortized Estimated Amortized Estimated Amortized Estimated (dollars in thousands) Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value March 31, 2020 Government agency securities $ — $ — $ 1,410 $ 1,426 $ — $ — $ — $ — $ 1,410 $ 1,426 SBA securities — — 656 678 3,909 3,969 — — 4,565 4,647 Mortgage-backed securities- Government sponsored agencies 3,532 3,566 14,728 15,206 — — — — 18,260 18,772 Collateralized mortgage obligations — — 8,855 8,984 2,181 2,235 — — 11,036 11,219 Corporate debt securities 72,413 72,415 2,002 1,998 11,762 11,937 4,008 3,880 90,185 90,230 Total available for sale $ 75,945 $ 75,981 $ 27,651 $ 28,292 $ 17,852 $ 18,141 $ 4,008 $ 3,880 $ 125,456 $ 126,294 Municipal taxable securities $ 787 $ 804 $ 1,712 $ 1,767 $ 504 $ 590 $ — $ — $ 3,003 $ 3,161 Municipal securities — — 40 40 876 903 3,906 4,050 4,822 4,993 Total held to maturity $ 787 $ 804 $ 1,752 $ 1,807 $ 1,380 $ 1,493 $ 3,906 $ 4,050 $ 7,825 $ 8,154 December 31, 2019 Government agency securities $ — $ — $ 1,591 $ 1,572 $ — $ — $ — $ — $ 1,591 $ 1,572 SBA securities — — 714 725 3,957 3,966 — — 4,671 4,691 Mortgage-backed securities- Government sponsored agencies 3,663 3,679 13,027 13,059 2,436 2,433 — — 19,126 19,171 Collateralized mortgage obligations — — 9,288 9,265 2,353 2,389 — — 11,641 11,654 Corporate debt securities 70,914 70,919 2,002 2,008 11,772 12,024 4,012 4,030 88,700 88,981 Total available for sale $ 74,577 $ 74,598 $ 26,622 $ 26,629 $ 20,518 $ 20,812 $ 4,012 $ 4,030 $ 125,729 $ 126,069 Municipal taxable securities $ 285 $ 289 $ 2,716 $ 2,784 $ 504 $ 579 $ — $ — $ 3,505 $ 3,652 Municipal securities — — 40 40 366 379 4,421 4,561 4,827 4,980 Total held to maturity $ 285 $ 289 $ 2,756 $ 2,824 $ 870 $ 958 $ 4,421 $ 4,561 $ 8,332 $ 8,632 The following table summarizes investment securities with unrealized losses at March 31, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position: Less than Twelve Months Twelve Months or More Total (dollars in thousands) Unrealized Losses Estimated Fair Value No. of Issuances Unrealized Losses Estimated Fair Value No. of Issuances Unrealized Losses Estimated Fair Value No. of Issuances March 31, 2020 SBA securities $ (5 ) $ 1,440 2 $ — $ — — $ (5 ) $ 1,440 2 Mortgage-backed securities- Government sponsored agencies (8 ) 1,039 6 — — — (8 ) 1,039 6 Corporate debt securities (159 ) 7,971 4 — — — (159 ) 7,971 4 Total available for sale $ (172 ) $ 10,450 12 $ — $ — — $ (172 ) $ 10,450 12 Municipal securities $ — $ — — $ — $ — — $ — $ — — Total held to maturity $ — $ — — $ — $ — — $ — $ — — December 31, 2019 Government agency securities $ (19 ) $ 1,572 2 $ — $ — — $ (19 ) $ 1,572 2 SBA securities (22 ) 1,469 2 — — — (22 ) 1,469 2 Mortgage-backed securities- Government sponsored agencies (5 ) 2,631 4 (24 ) 3,912 6 (29 ) 6,543 10 Collateralized mortgage obligations (10 ) 5,738 3 (15 ) 953 2 (25 ) 6,691 5 Total available for sale $ (56 ) $ 11,410 11 $ (39 ) $ 4,865 8 $ (95 ) $ 16,275 19 Municipal securities $ — $ — — $ — $ — — $ — $ — — Total held to maturity $ — $ — — $ — $ — — $ — $ — — Unrealized losses have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell, it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach maturity. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 5 - LOANS AND ALLOWANCE FOR LOAN LOSSES The Company's loan portfolio consists primarily of loans to borrowers within the Southern California metropolitan area, the New York City metropolitan area, the Chicago, Illinois metropolitan area and Las Vegas, Nevada. Although the Company seeks to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses are among the principal industries in the Company's market area and, as a result, the Company's loan and collateral portfolios are, to some degree, concentrated in those industries. The following tables present the balance and activity related to the allowance for loan losses for held for investment loans by type for the periods presented. Three Months Ended March 31, 2020 2019 (dollars in thousands) Real Estate Commercial Other Unallocated Total Real Estate Commercial Other Total Allowance for loan losses: Beginning balance $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 $ 13,437 $ 4,140 $ — $ 17,577 Additions (reductions) to the allowance charged to expense 1,273 735 7 (70 ) 1,945 952 (405 ) 3 550 Charge-offs on loans — (631 ) — — (631 ) — — — — Recoveries on loans — — — — — — 109 — 109 Ending balance $ 16,391 $ 3,692 $ 16 $ 31 $ 20,130 $ 14,389 $ 3,844 $ 3 $ 18,236 For the year end December 31, 2019 (dollars in thousands) Real Estate Commercial Other Unallocated Total Allowance for loan losses: Beginning of year $ 13,437 $ 4,140 $ — $ — $ 17,577 Additions (reductions) to the allowance charged to expense 1,847 433 9 101 2,390 Charge-offs on loans (166 ) (1,093 ) — — (1,259 ) Recoveries on loans — 108 — — 108 Ending balance $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 The following table presents the recorded investment in loans and impairment method as of March 31, 2020 and March 31, 2019, and the activity in the allowance for loan losses for the year ended December 31, 2019, by portfolio segment: (dollars in thousands) March 31, 2020 Real Estate Commercial Other Unallocated Total Reserves: Specific $ — $ — $ — $ — $ — General 16,391 3,692 16 31 20,130 Total allowance for loan losses $ 16,391 $ 3,692 $ 16 $ 31 $ 20,130 Loans evaluated for impairment: Individually 5,376 14,898 — — 20,274 Collectively 2,039,968 338,270 1,470 — 2,379,708 Total loans, net of deferred loan fees and unaccreted discount on acquired loans $ 2,045,344 $ 353,168 $ 1,470 $ — $ 2,399,982 March 31, 2019 Real Estate Commercial Unallocated Total Reserves: Specific $ — $ 11 $ — $ 11 General 14,389 3,833 3 18,225 Total allowance for loan losses 14,389 3,844 3 18,236 Loans evaluated for impairment: Individually 2,365 221 — 2,586 Collectively 1,765,585 351,906 336 2,117,827 Total loans, net of deferred loan fees and unaccreted discount on acquired loans $ 1,767,950 $ 352,127 $ 336 $ 2,120,413 December 31, 2019 Real Estate Commercial Other Unallocated Total Reserves: Specific $ — $ — $ — $ — $ — General 15,118 3,588 9 101 18,816 Loans acquired with deteriorated credit quality — — — — Total allowance for loan losses $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 Loans evaluated for impairment: Individually $ 3,795 $ 9,423 $ — $ — $ 13,218 Collectively 1,842,747 340,148 821 — 2,183,716 Loans acquired with deteriorated credit quality — — — — Total loans, net of deferred loan fees and unaccreted discount on acquired loans $ 1,846,542 $ 349,571 $ 821 $ — $ 2,196,934 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. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous 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 classified as pass include loans not meeting the risk ratings defined below. 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 institution will sustain some loss if the deficiencies are not corrected. Impaired - A loan is considered impaired, when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as troubled debt restructurings are considered impaired. The risk category of loans by class of loans was as follows at March 31, 2020 and December 31, 2019: (dollars in thousands) Special March 31, 2020 Pass Mention Substandard Impaired (1) Total Real estate: Construction and land development $ 119,681 $ — $ 173 $ 261 $ 120,115 Commercial real estate 804,312 29,073 19,009 2,186 854,580 Single-family residential mortgages 1,066,360 495 865 2,929 1,070,649 Commercial: Other 261,934 6,080 5,719 1,869 275,602 SBA 59,897 189 4,451 13,029 77,566 Other: 1,470 — — — 1,470 Total loans $ 2,313,654 $ 35,837 $ 30,217 $ 20,274 $ 2,399,982 (dollars in thousands) Special December 31, 2019 Pass Mention Substandard Impaired (1) Total Real estate: Construction and land development $ 95,756 $ — $ — $ 264 $ 96,020 Commercial real estate 767,603 5,353 18,115 2,197 793,268 Single-family residential mortgages 955,327 — 593 1,334 957,254 Commercial: Other 265,178 4,078 5,330 — 274,586 SBA 61,496 189 3,877 9,423 74,985 Other: 821 — — — 821 Total loans $ 2,146,181 $ 9,620 $ 27,915 $ 13,218 $ 2,196,934 (1) Loans, net of deferred fees The following table presents the aging of the recorded investment in past-due loans at March 31, 2020 and December 31, 2019 by class of loans: (dollars in thousands) 30-59 60-89 90 Days Total Loans Not Total Non- Accrual March 31, 2020 Days Days Or More Past Due Past Due Loans Loans (1) Real estate: Construction and land development $ — $ — $ — $ — $ 120,115 $ 120,115 $ — Commercial real estate 11,606 — 725 12,331 842,249 854,580 725 Single-family residential mortgages 3,048 2,669 1,813 7,530 1,063,119 1,070,649 2,930 Commercial: Other 1,554 1,090 1,315 3,959 271,643 275,602 1,363 SBA 2,671 646 12,987 16,304 61,262 77,566 12,987 Other: 74 — — 74 1,396 1,470 — $ 18,953 $ 4,405 $ 16,840 $ 40,198 $ 2,359,784 $ 2,399,982 $ 18,005 Real estate: Single-family residential mortgages held for sale $ 404 $ — $ — $ 404 $ 51,692 $ 52,096 $ — 30-59 60-89 90 Days Total Loans Not Total Non- Accrual December 31, 2019 Days Days Or More Past Due Past Due Loans Loans (1) Real estate: Construction and land development $ — $ — $ — $ — $ 96,020 $ 96,020 $ — Commercial real estate — — 725 725 792,543 793,268 725 Single-family residential mortgages 1,454 1,560 450 3,464 953,790 957,254 1,334 Commercial: Other — — — — 274,586 274,586 — SBA 2,263 — 9,378 11,641 63,344 74,985 9,378 Other: — — — — 821 821 — $ 3,717 $ 1,560 $ 10,553 $ 15,830 $ 2,181,104 $ 2,196,934 $ 11,437 Real estate: Single-family residential mortgages held for sale $ — $ — $ — $ — $ 108,194 $ 108,194 $ — (1) Included in total loans. The Company has one loan in the amount of $225,000 90 days or more past due and still accruing at March 31, 2020. Information relating to individually impaired loans presented by class of loans was as follows at March 31, 2020 and December 31, 2019: (dollars in thousands) Principal Recorded Related March 31, 2020 Balance Investment Allowance With no related allowance recorded Construction and land development $ 261 $ 261 $ — Commercial and industrial 1,881 1,869 Commercial real estate 2,186 2,186 — Residential mortgage loans 2,965 2,929 — Commercial – SBA 13,039 13,029 — With related allowance recorded Commercial and industrial — — — Single-family residential mortgage — — — Total $ 20,332 $ 20,274 $ — (dollars in thousands) Principal Recorded Average Interest Related December 31, 2019 Balance Investment Balance Income Allowance With no related allowance recorded Construction and land development $ 264 $ 264 $ 271 $ 24 $ — Commercial real estate 2,198 2,197 2,384 100 — Residential mortgage loans 1,349 1,334 1,351 — — Commercial – SBA 9,423 9,423 10,791 4 — With related allowance recorded Commercial – SBA — — — — — Total $ 13,234 $ 13,218 $ 14,797 $ 128 $ — The following table presents information on impaired loans and leases, disaggregated by loan segment, for the periods indicated: Three Months Ended March 31, 2020 March 31, 2019 Average Interest Average Interest (dollars in thousands) Balance Income Balance Income With no related allowance recorded Construction and land development $ 262 $ 2 $ 275 $ 6 Commercial and industrial 1,987 9 — — Commercial real estate 2,423 25 2,100 17 Residential mortgage loans 2,962 — — — Commercial – SBA 15,153 1 56 1 With related allowance recorded Commercial - SBA — — 166 — $ 22,787 $ 37 $ 2,597 $ 24 No interest income was recognized on a cash basis for the three months ended March 31, 2020 and 2019 and for the year ended December 31, 2019. The Company had five and four loans identified as troubled debt restructurings (“TDRs”) at March 31, 2020 and December 31, 2019, respectively, with aggregate balances of $2.3 million and $1.8 million, respectively. There were no specific reserves allocated to the loans as of March 31, 2020 and December 31, 2019. There are no commitments to lend additional amounts at March 31, 2020 and December 31, 2019 to customers with outstanding loans that are classified as TDRs. There were no loans that were modified as TDRs during the past twelve months that had payment defaults during the periods. The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2020. There was one loan modified as a TDR during the three months ended March 31, 2020. There were no new TDRs during the three months ended March 31, 2019. The modification of the terms generally included loans where a moratorium on loan payments was granted. Such moratoriums ranged from six months to nine months on the loans restructured in 2020 and 2019. Pre- Post- Modification Modification (dollars in thousands) Number of Recorded Recorded March 31, 2020 Loans Investment Investment Commercial and industrial 1 506 506 Total 1 $ 506 $ 506 |
Loan Servicing
Loan Servicing | 3 Months Ended |
Mar. 31, 2020 | |
Loan Servicing [Abstract] | |
Loan Servicing | NOTE 6 - LOAN SERVICING Mortgage and SBA loans serviced for others are not reported as assets. The principal balances at March 31, 2020 and December 31, 2019 are as follows: March 31, December 31, (dollars in thousands) 2020 2019 Loans serviced for others: Mortgage loans $ 1,673,304 $ 1,683,298 SBA loans $ 156,750 $ 170,849 Commercial real estate loans $ 4,199 $ 4,216 The fair value of servicing assets for mortgage loans was $13.2 million and $15.1 million at March 31, 2020 and December 31, 2019, respectively. The fair value of servicing assets for SBA loans was $4.1 million and $5.6 million at March 31, 2020 and December 31, 2019, respectively. Estimates of the loan servicing asset fair value are derived through a discounted cash flow analysis. Portfolio characteristics include loan delinquency rates, age of loans, note rate and geography. The assumptions embedded in the valuation are obtained from a range of metrics utilized by active buyers in the market place. The analysis accounts for recent transactions, and supply and demand within the market. Servicing fees net of servicing asset amortization totaled $592,000 and $840,000 for the three months ended March 31, 2020 and 2019, respectively. When mortgage and SBA loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal. The amortization of mortgage servicing rights is netted against loan servicing fee income. Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Mortgage SBA Mortgage SBA (dollars in thousands) Loans Loans Loans Loans Servicing assets: Beginning of period $ 12,997 $ 4,086 $ 12,858 $ 4,512 Additions 789 38 604 112 Disposals (343 ) (217 ) (33 ) (127 ) Amortized to expense (382 ) (142 ) (466 ) (172 ) End of period $ 13,061 $ 3,765 $ 12,963 $ 4,325 |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | NOTE 7 - GOODWILL AND INTANGIBLES Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill resulting from whole bank acquisitions is not amortized, but tested for impairment at least annually. The Company has selected December 31st as the date to perform the annual impairment test. Goodwill amounted to $69.8 million at March 31, 2020 and $58.6 million at December 31, 2019, and is the only intangible asset with an indefinite life on the balance sheet. There were no impairment losses recognized on goodwill during the three months ended March 31, 2020 and 2019. Other intangible assets consist of core deposit intangible ("CDI") assets arising from whole bank acquisitions. CDI assets are amortized on an accelerated method over their estimated useful life of 8 to 10 years. The unamortized balance at March 31, 2020 and December 31, 2019 was $6.2 million and $6.1 million, respectively. CDI amortization expense was $357,000 and $388,000 for the three months ended March 31, 2020 and March 31, 2019, respectively. Estimated CDI amortization expense for future years is as follows: (dollars in thousands) As of March 31: Remainder of 2020 $ 1,037 2021 1,121 2022 936 2023 800 2024 683 Thereafter 1,657 Total $ 6,234 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Maturities Of Time Deposits [Abstract] | |
Deposits | NOTE 8 - DEPOSITS At March 31, 2020, the scheduled maturities of time deposits are as follows: (dollars in thousands) March 31, 2020 One year $ 1,267,249 Two to three years 76,236 Over three years 16,301 Total $ 1,359,786 The Board of Governors of the Federal Reserve System (“Federal Reserve”) announced the reduction of the reserve requirement ratio to zero percent across all deposit tiers, effective March 26, 2020. Depository institutions that were required to maintain deposits in a Federal Reserve bank account to satisfy reserve requirements will no longer be required to do and can use the additional liquidity to lend to individuals and businesses. The Federal Reserve has indicated that it may adjust reserve requirement ratios in the future if conditions warrant. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | NOTE 9 - LONG-TERM DEBT In March 2016, the Company issued $50 million of 6.5% fixed to floating rate subordinated debentures, due March 31, 2026. The interest rate is fixed through March 31, 2021 and floats at the 3 month LIBOR plus 516 basis points thereafter. The Company can redeem these subordinated debentures beginning March 31, 2021. The subordinated debentures are considered Tier 2 capital at the Company. The Company allocated $35 million to the Bank as Tier 1 capital. In November 2018, the Company issued $55 million of 6.18% fixed to floating rate subordinated debentures, due December 1, 2028. The interest rate is fixed through December 1, 2023 and floats at 3 month LIBOR plus 315 basis points thereafter. The Company can redeem these subordinated debentures beginning December 1, 2023. The subordinated debentures are considered Tier 2 capital at the Company. The Company allocated $25 million to the Bank as Tier 1 capital. At March 31, 2020 and December 31, 2019, long-term debt was as follows: March 31, December 31, (dollars in thousands) 2020 2019 Principal $ 105,000 $ 105,000 Unamortized debt issuance costs $ 865 $ 951 The following table presents interest and amortization expense the Company incurred for the three months ended March 31, 2020 and 2019: For the Three Months Ended March 31, (dollars in thousands) 2020 2019 Interest Expense: Interest $ 1,662 $ 1,662 Amortization 86 85 In July 2017, British banking regulators announced plans to eliminate the LIBOR rate by the end of 2021, before this long-term debt and subordinated debentures mature. For these subordinated debentures, there are provisions for amendments to establish a new interest rate benchmark |
Subordinated Debentures
Subordinated Debentures | 3 Months Ended |
Mar. 31, 2020 | |
Debt Instruments [Abstract] | |
Subordinated Debentures | NOTE 10 - SUBORDINATED DEBENTURES The Company, through the acquisition of TFC Holding Company (“TFC”) in 2016, acquired TFC Statutory Trust (the “Trust”). The Trust conducted a pooled private offering of 5,000 trust preferred securities with a liquidation amount of $1,000 per security. TFC issued $5 million of subordinated debentures to the Trust in exchange for ownership of all of the common securities of the Trust and the proceeds of the preferred securities sold by the Trust. The Company is not considered the primary beneficiary of this Trust (variable interest entity), therefore the Trust is not consolidated in the Company's financial statements, but rather the subordinated debentures are shown as a liability at market value as of the close of the acquisition, which was $3.3 million. There was a $1.9 million valuation reserve recorded to arrive at market value, which is treated as a yield adjustment and is amortized over the life of the security. The Company also purchased an investment in the common stock of the Trust for $155,000, which is included in other assets. The Company may redeem the subordinated debentures, subject to prior approval by the Federal Reserve on or after March 15, 2012, at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on March 15, 2037. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years. The Company has been paying interest on a quarterly basis. The subordinated debentures may be included in Tier I capital (with certain limitations applicable) under current regulatory guidelines and interpretations. The subordinated debentures have a variable rate of interest equal to the three month LIBOR plus 1.65%, which was 2.39% as of March 31, 2020 and 3.54% at December 31, 2019. In October 2018, the Company, through the acquisition of First American International Corp. (“FAIC”), acquired First American International Statutory Trust I (“FAIC Trust”), a Delaware statutory trust formed in December 2004. The FAIC Trust issued 7,000 units of thirty-year fixed to floating rate capital securities with an aggregate liquidation amount of $7,000,000 to an independent investor, and FAIC issued $7 million of subordinated debentures to the FAIC Trust and all of its common securities, amounting to $217,000, which is included in other assets. There was a $1.2 million valuation reserve recorded to arrive at market value which is treated as a yield adjustment and is amortized over the life of the security. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years. The subordinated debentures have a variable rate of interest equal to the three-month LIBOR plus 2.25% through final maturity on December 15, 2034. The rate at March 31, 2020 was 2.99% and 4.14% at December 31, 2019. In January 2020, the Company, through the acquisition of PGBH, acquired Pacific Global Bank Trust I (“PGBH Trust”), a Delaware statutory trust formed in December 2004. PGBH Trust issued 5,000 units of fixed to floating rate capital securities with an aggregate liquidation amount of $5,000,000 and 155 common securities with an aggregate liquidation amount of $155,000. PGBH issued $5.2 million of subordinated debentures to PGBH Trust in exchange for ownership of all the common securities of PGBH Trust. There was a $763,000 valuation reserve recorded to arrive at market value which is treated as a yield adjustment and is amortized over the life of the security. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years. The subordinated debentures have a variable rate of interest equal to the three-month LIBOR plus 2.10% through final maturity on December 15, 2034. The rate at March 31, 2020 was 2.84%. The Company paid interest expense of $153,000 and $144,000 for the three months ended March 31, 2020 and 2019, respectively. The amount of aggregate amortization expense recognized for the three months ended March 31, 2020 and 2019 was $55,000 and $42,000, respectively. For regulatory reporting purposes, the Federal Reserve has indicated that the capital or trust preferred securities qualify as Tier I capital of the Company subject to previously specified limitations, until further notice. If regulators make a determination that the capital securities can no longer be considered in regulatory capital, the securities become callable and the Company may redeem them. In July 2017, British banking regulators announced plans to eliminate the LIBOR rate by the end of 2021, before these subordinated notes and debentures mature. For these subordinated debentures, there are provisions for amendments to establish a new interest rate benchmark. |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | NOTE 11 - BORROWING ARRANGEMENTS The Company has established secured and unsecured lines of credit. The Company may borrow funds from time to time on a term or overnight basis from the Federal Home Loan Bank of San Francisco ("FHLB"), the Federal Reserve Bank of San Francisco ("FRB") and other financial institutions as indicated below. FHLB Advances. The Company borrowed $150.0 million five-year term fixed rate FHLB advances at a weighted average fixed rate of 1.18% and the advances will mature by March 2025. Federal Funds Arrangements with Commercial Banks. At March 31, 2020, the Company may borrow on an unsecured basis, up to $20.0 million, $10.0 million, $12.0 million and $5.0 million overnight from Zions Bank, Wells Fargo Bank, First Tennessee National Bank, and Pacific Coast Bankers' Bank, respectively. Letter of Credit Arrangements. At March 31, 2020, the Company had an unsecured commercial letter of credit line with Wells Fargo Bank for $2.0 million. FRB Secured Line of Credit. The secured borrowing capacity with the FRB of $14.0 million at March 31, 2020 is collateralized by loans pledged with a carrying value of $28.6 million. FHLB Secured Line of Credit. The secured borrowing capacity with the FHLB of $468.2 million at March 31, 2020 is collateralized by loans pledged with a carrying value of $568.7 million. At March 31, 2020, the Company had $150.0 million at a weighted average rate of 1.18% in long-term (five year) advances with the FHLB, and no overnight or long-term advances at December 31, 2019. There were no amounts outstanding under any of the other borrowing arrangements above as of March 31, 2020 and at December 31, 2019 except FHLB advances maturing in 2025. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 - INCOME TAXES The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. During the three months ended March 31, 2020 and 2019, the Company recorded an income tax provision of $3.3 million and $3.9 million, respectively, reflecting an effective tax rate of 32.5% and 27.1% for the three months ended March 31, 2020 and 2019, respectively. The Company recognized a tax benefit from stock option exercises of $28,000 and $133,000 for the three months ended March 31, 2020 and 2019, respectively. |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | NOTE 13 - COMMITMENTS The Company leases several of its operating facilities under various noncancellable operating leases expiring at various dates through 2028. The Company is also responsible for common area maintenance, taxes and insurance at the various branch locations. Future minimum rent payments on the Company’s leases were as follows at March 31, 2020: (dollars in thousands) Year ending December 31: 2020 remaining $ 4,241 2021 4,751 2022 4,284 2023 3,322 2024 2,224 Thereafter 9,016 Total $ 27,838 The minimum rent payments shown above are given for the existing lease obligation and are not a forecast of future rental expense. Total rental expense, recognized on a straight-line basis, was $1.5 million and $1.5 million for the three months ended March 31, 2020 and 2019, respectively. The Company received rental income of $84,000 and $49,000 in the first quarter of 2020 and 2019, respectively. In the ordinary course of business, the Company enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit, unused lines of credit, commercial and similar letters of credit and standby letters of credit. Those instruments involve to varying degrees, elements of credit and interest rate risk not recognized in the Company's financial statements. The Company's exposure to loan loss in the event of nonperformance on these financial commitments is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for loans reflected in the financial statements. At March 31, 2020 and December 31, 2019, the Company had the following financial commitments whose contractual amount represents credit risk: March 31, December 31, (dollars in thousands) 2020 2019 Commitments to extend credit $ 387,248 $ 326,126 Commercial and similar letters of credit 227 358 Standby letters of credit 3,963 3,715 Total $ 391,438 $ 330,199 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. Since many of the commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Company evaluates each client'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. The Company is involved in various matters of litigation which have arisen in the ordinary course of business and accruals for estimates of potential losses have been provided when necessary and appropriate under generally accepted accounting principles. In the opinion of management, the disposition of such pending litigation will not have a material effect on the Company's financial statements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14 - RELATED PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates were as follows: March 31, December 31, (dollars in thousands) 2020 2019 Beginning balance $ 4,000 $ 3,600 New loans and advances 4,000 16,180 Repayments (4,000 ) $ (15,780 ) Ending balance $ 4,000 $ 4,000 There were no unfunded loan commitments outstanding to executive officers, directors and their related interests with whom they are associated at March 31, 2020 and at December 31, 2019. Deposits from principal officers, directors, and their affiliates at March 31, 2020 and December 31, 2019 were $81.4 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | NOTE 15 - STOCK-BASED COMPENSATION RBB Bancorp 2010 Stock Option Plan Under the RBB Bancorp 2010 Stock Option Plan (the “2010 Plan”), the Company was permitted to grant awards to eligible persons in the form of qualified and non-qualified stock options. The Company reserved up to 30% of the issued and outstanding shares of common stock as of the date the Company adopted the 2010 Plan or 3,494,478 shares, for issuance under the 2010 Plan. After approval of the 2017 Omnibus Stock Incentive Plan (the “OSIP”) at the Company’s annual meeting on May 23, 2017, no additional grants were made under the 2010 Plan. The 2010 Plan has been terminated and options that were granted under that Plan have become subject to the OSIP. Awards that were granted under the 2010 Plan will remain exercisable pursuant to the terms and conditions set forth in individual award agreements, but such awards will be assumed and administered under the OSIP. The 2010 Plan award agreements allow for acceleration of exercise privileges of grants upon occurrence of a change in control of the Company. If a participant’s job is terminated for cause, then all unvested awards expire at the date of termination. RBB Bancorp 2017 Omnibus Stock Incentive Plan The OSIP was adopted by the Company’s board of directors on January 18, 2017 and approved by the Company’s shareholders at the Company’s annual meeting on May 23, 2017. The OSIP was designed to ensure continued availability of equity awards that will assist the Company in attracting and retaining competent managerial personnel and rewarding key employees, directors and other service providers for high levels of performance. Pursuant to the OSIP, the Company’s board of directors are allowed to grant awards to eligible persons in the form of qualified and non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights and other incentive awards. The Company has reserved up to 30% of issued and outstanding shares of common stock as of the date the Company adopted the OSIP, or 3,848,341 shares. As of March 31, 2020, there were 1,207,045 shares of common stock available for issuance under the OSIP. This represents 6.11% of the issued and outstanding shares of the Company’s common stock as of March 31, 2020. Awards vest, become exercisable and contain such other terms and conditions as determined by the board of directors and set forth in individual agreements with the employees receiving the awards. The OSIP enables the board of directors to set specific performance criteria that must be met before an award vests. The OSIP allows for acceleration of vesting and exercise privileges of grants if a participant’s termination of employment is due to a change in control, death or total disability. If a participant’s job is terminated for cause, then all awards expire at the date of termination. The Company recognized stock-based compensation expense of $161,000 and $231,000 and recognized income tax benefits on that expense of $28,000 and $92,000 for the three months ended March 31, 2020 and 2019, respectively. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions presented below for 2020 and 2019. 2020 2019 Expected volatility 28.5 % 35.0 % Expected term 6.0 years 6.0 years Expected dividends 1.99 % 1.90 % Risk free rate 1.31 % 2.66 % Grant date fair value $ 4.61 $ 6.32 Since the Company had a limited amount of historical stock activity, the expected volatility was based on the historical volatility of similar banks that had a longer trading history. The expected term represents the estimated average period of time that the options remain outstanding. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding. The risk free rate of return reflects the grant date interest rate offered for zero coupon U.S. Treasury bonds over the expected term of the options. A summary of the status of awards pursuant to the Company's stock option plans as of March 31, 2020 and changes during the three months ended ended is presented below: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic (dollars in thousands, except for share amounts) Shares Price Term Value Outstanding at beginning of year 1,090,968 $ 13.11 Granted 51,000 20.10 Exercised (56,498 ) 12.61 Forfeited/cancelled (4,000 ) 18.38 Outstanding at end of year 1,081,470 $ 13.45 4.10 years $ 1,826 Options exercisable 982,470 $ 12.87 3.57 years $ 1,826 As of March 31, 2020 there was approximately $512,000 of total unrecognized compensation cost related to outstanding stock options that will be recognized over a weighted-average period of 2.2 years. The total fair value of the shares vested was $350,000, and $460,000 in 2020, and 2019, respectively. The number of unvested stock options were 99,000, and 76,500 with a weighted-average grant date fair value of $5.43 and $6.32 as of March 31, 2020, and December 31, 2019. Cash received from the exercise of 56,498 share options was $712,000 for the period ended March 31, 2020 and cash received from the exercise of 200,629 share options was $2.8 million for the year ended December 31, 2019. The intrinsic value of options exercised was $389,000, and $1.2 million, in 2020 and 2019 respectively. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2020 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | NOTE 16 - REGULATORY MATTERS Holding companies (with assets over $3 billion at the beginning of the year) and banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. In July 2013, the federal bank regulatory agencies approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks. The new rules became effective on January 1, 2015, with certain of the requirements phased-in over a multi-year schedule. Under the rules, minimum requirements increased for both the quantity and quality of capital held by the Bank. The rules include a common equity Tier 1 (“CET1”) capital to risk-weighted assets ratio with minimums for capital adequacy and prompt corrective action purposes of 4.5% and 6.5%, respectively. The minimum Tier 1 capital to risk-weighted assets ratio was raised from 4.0% to 6.0% under the capital adequacy framework and from 6.0% to 8.0% to be well-capitalized under the prompt corrective action framework. In addition, the rules introduced the concept of a "conservation buffer" of 2.5% applicable to the three capital adequacy risk-weighted asset ratios (CET1, Tier 1, and Total). The implementation of the capital conservation buffer began on January 1, 2016 at 0.625% and was phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reached 2.5% on January 1, 2019). If the capital adequacy minimum ratios plus the phased-in conservation buffer amount exceed actual risk-weighted capital ratios, then dividends, share buybacks, and discretionary bonuses to executives could be limited in amount. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and CET1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). As permitted by the regulators for financial institutions that are not deemed to be “advanced approaches” institutions, the Company has elected to opt out of the Basel III requirement to include accumulated other comprehensive income in risk-based capital. Management believes, at March 31, 2020 and December 31, 2019, that RBB and the Bank satisfied all capital adequacy requirements to which they were subject. As defined in applicable regulations and set forth in the tables below, RBB and the Bank continue to exceed the regulatory capital minimum requirements and the Bank continues to exceed the "well capitalized" standards at the dates indicated: Amount of Capital Required Minimum Required Plus To Be Well- Minimum Required Capital Capitalized Actual for Capital Adequacy Purposes Conservation Buffer Fully Phased-In Under Prompt Corrective Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of March 31, 2020: Tier 1 Leverage Ratio Consolidated $ 347,133 11.74 % NA NA NA NA NA NA Bank 426,236 14.44 % $ 118,042 4.0 % $ 118,042 4.0 % $ 147,552 5.0 % Common Equity Tier 1 Risk- Based Capital Ratio Consolidated 333,013 15.45 % NA NA NA NA NA NA Bank 426,236 19.79 % 96,911 4.5 % 150,750 7.0 % 139,982 6.5 % Tier 1 Risk-Based Capital Ratio Consolidated 347,133 16.10 % NA NA NA NA NA NA Bank 426,236 19.79 % 129,214 6.0 % 183,054 8.5 % 172,286 8.0 % Total Risk-Based Capital Ratio Consolidated 472,376 21.91 % NA NA NA NA NA NA Bank 447,344 20.77 % 172,286 8.0 % 226,125 10.5 % 215,357 10.0 % Amount of Capital Required Minimum Required Plus To Be Well- Minimum Required for Capital Adequacy Capital Conservation Buffer Capitalized Under Prompt Corrective Actual Purposes Fully Phased-In Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Tier 1 Leverage Ratio Consolidated $ 353,572 12.89 % NA NA NA NA NA NA Bank 417,036 15.23 % $ 108,150 4.0 % $ 108,150 4.0 % $ 135,187 5.0 % Common Equity Tier 1 Risk- Based Capital Ratio Consolidated 343,899 17.16 % NA NA NA NA NA NA Bank 417,036 20.87 % 89,127 4.5 % 138,642 7.0 % 128,739 6.5 % Tier 1 Risk-Based Capital Ratio Consolidated 353,572 17.65 % NA NA NA NA NA NA Bank 417,036 20.87 % 118,836 6.0 % 168,351 8.5 % 158,448 8.0 % Total Risk-Based Capital Ratio Consolidated 477,262 23.82 % NA NA NA NA NA NA Bank 436,677 21.86 % 158,448 8.0 % 207,964 10.5 % 198,061 10.0 % The California Financial Code generally acts to prohibit banks from making a cash distribution to its shareholders 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 by the bank's shareholders during the same period. The California General Corporation Law generally acts to prohibit companies from paying dividends on common stock unless its retained earnings, immediately prior to the dividend payment, equals or exceeds the amount of the dividend. If a company fails this test, then it may still pay dividends if after giving effect to the dividend the company's assets are at least 125% of its liabilities. Additionally, the Federal Reserve has issued guidance which requires that they be consulted before payment of a dividend if a financial holding company does not have earnings over the prior four quarters of at least equal to the dividend to be paid, plus other holding company obligations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 17 - FAIR VALUE MEASUREMENTS The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities: 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). Other Real Estate Owned Appraisals for OREO are performed by state licensed appraisers (for commercial properties) or state certified appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. When a Notice of Default is recorded, an appraisal report is ordered. Once received, a member of the credit administration department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison to independent data sources such as recent market data or industry wide-statistics for residential appraisals. Commercial appraisals are sent to an independent third party to review. The Company also compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal values on any remaining other real estate owned to arrive at fair value. If the existing appraisal is older than twelve months a new appraisal report is ordered. No significant adjustments to appraised values have been made as a result of this comparison process as of March 31, 2020. Collateral-dependent impaired loans The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value at March 31, 2020 and December 31, 2019: (dollars in thousands) Fair Value Measurements Using: March 31, 2020 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ — $ 1,426 $ — $ 1,426 SBA agency securities — 4,647 — 4,647 Mortgage-backed securities — 18,772 — 18,772 Collateralized mortgage obligations — 11,219 — 11,219 Corporate debt securities — 90,230 — 90,230 $ — $ 126,294 $ — $ 126,294 On a non-recurring basis: Commercial real estate - collateral dependent impaired loans $ — $ — $ 3,608 $ 3,608 Other real estate owned — — 293 293 $ — $ — $ 3,901 $ 3,901 December 31, 2019 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ — $ 1,572 $ — $ 1,572 SBA agency securities — 4,691 — 4,691 Mortgage-backed securities — 19,171 — 19,171 Collateralized mortgage obligations — 11,654 — 11,654 Commercial paper — 69,898 — 69,898 Corporate debt securities — 19,083 — 19,083 $ — $ 126,069 $ — $ 126,069 On a non-recurring basis: Other real estate owned $ — $ — $ 293 $ 293 No write-downs to OREO were recorded for the three months ended March 31, 2020 or for the year ended December 31, 2019. Quantitative information about the Company's impaired loans and OREO non-recurring Level 3 fair value measurements at March 31, 2020 and December 31, 2019 is as follows: (dollars in thousands) Fair Value Valuation Unobservable Adjustment March 31, 2020 Amount Technique Input Range Collateral dependent impaired loans - commercial real estate $ 3,608 Third Party Appraisals Management Adjustments to Reflect Current Conditions and Selling Costs 5% - 6% Other real estate owned $ 293 Third Party Appraisals Management Adjustments to Reflect Current Conditions and Selling Costs 5%-6% December 31, 2019 Other real estate owned $ 293 Third Party Management Adjustments 5%-6% Appraisals to Reflect Current Conditions and Selling Costs OREO as of March 31, 2020 consists of one single-family residence with a fair value of $293,000. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 18 - FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The fair value hierarchy level and estimated fair value of significant financial instruments at March 31, 2020 and December 31, 2019 are summarized as follows: March 31, December 31, 2020 2019 Fair Value Carrying Fair Carrying Fair (dollars in thousands) Hierarchy Value Value Value Value Financial Assets: Cash and due from banks Level 1 $ 285,667 $ 285,667 $ 114,763 $ 114,763 Federal funds sold and other cash equivalents Level 1 75,300 75,300 67,000 67,000 Interest-earning deposits in other financial institutions Level 1 600 600 600 600 Investment securities - AFS Level 2 126,294 126,294 126,069 126,069 Investment securities - HTM Level 2 7,825 8,154 8,332 8,632 Mortgage loans held for sale Level 1 52,096 52,664 108,194 109,385 Loans, net Level 3 2,379,852 2,325,638 2,178,118 2,158,970 Equity security Level 3 11,817 11,817 11,826 11,826 Mortgage serving rights Level 2 16,826 17,251 17,083 20,752 Financial Liabilities: Deposits Level 2 $ 2,435,981 $ 2,427,037 $ 2,248,938 $ 2,236,329 FHLB advances Level 2 150,000 150,000 — — Long-term debt Level 2 104,135 131,284 104,049 109,877 Subordinated debentures Level 3 14,120 20,902 9,673 11,709 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 19 - EARNINGS PER SHARE The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute earnings per share (“EPS”): For the Three Months Ended March 31, 2020 2019 (dollars in thousands except per share amounts) Income Shares Income Shares Net income as reported $ 6,748 $ 10,380 Less: Earnings allocated to participating securities (10 ) (22 ) Shares outstanding 19,739,280 20,073,991 Impact of weighting shares 232,576 (69,700 ) Used in basic EPS 6,738 19,971,856 10,358 20,004,291 Dilutive effect of outstanding Stock options 294,472 389,025 Used in dilutive EPS $ 6,738 20,266,328 $ 10,358 20,393,316 Basic earnings per common share $ 0.34 $ 0.52 Diluted earnings per common share 0.33 0.51 |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue From Contracts With Customers | NOTE 20 – REVENUE FROM CONTRACTS WITH CUSTOMERS On January 1, 2019, the Company adopted ASU 2014-09, Revenue from Contracts with Customers - Topic 606 The following is a summary of revenue from contracts with customers that are in-scope and not in-scope under Topic 606: For the Three Months Ended March 31, (dollars in thousands) 2020 2019 Non-interest income, in scope (1) Fees and service charges on deposit accounts $ 451 $ 298 Other fees (2) 149 198 Other income (3) 452 291 Total in-scope non-interest income 1,052 787 Non-interest income, not in scope (4) 3,563 3,415 Total non-interest income $ 4,615 $ 4,202 (1) There were no adjustments to the Company's financial statements recorded as a result of the adoption of ASC 606. (2) Other fees consists of wealth management fees, miscellaneous loan fees and postage/courier fees. (3) Other income consists of safe deposit box rental income, wire transfer fees, security brokerage fees, annuity sales, insurance activity and OREO income. (4) The amounts primarily represent revenue from contracts with customers that are out of scope of ASC 606: Net loan servicing income, letter of credit commissions, import/export commissions, recoveries on purchased loans, BOLI income, and gains (losses) on sales of mortgage loans, loans and investment securities. The major revenue streams by fee type that are within the scope of ASC 606 presented in the above tables are described in additional detail below: Fees and Services Charges on Deposit Accounts Fees and service charges on deposit accounts include charges for analysis, overdraft, cash checking, ATM, and safe deposit activities executed by our deposit clients, as well as interchange income earned through card payment networks for the acceptance of card based transactions. Fees earned from our deposit clients are governed by contracts that provide for overall custody and access to deposited funds and other related services, and can be terminated at will by either party; this includes fees from money service businesses (“MSBs”). Fees received from deposit clients for the various deposit activities are recognized as revenue once the performance obligations are met. The adoption of ASU 2014-09 had no impact to the recognition of fees and service charges on deposit accounts. Wealth Management Fees The Company employs financial consultants to provide investment planning services for customers including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies, and risk management strategies. The fees the Company earns are variable and are generally received monthly. The Company recognizes revenue for the services performed at quarter-end based on actual transaction details received from the broker dealer the Company engages. In the Company’s wealth management division, revenue is primarily generated from (1) securities brokerage accounts, (2) investment advisor accounts, (3) full service brokerage implementation fees, and Gain on Sales of OREO and Fixed Assets The Company records a gain or loss from the sale of OREO and fixed assets, when control of the property or asset transfers to the buyer, which generally occurs at the time of an executed deed or sales agreement. When the Company finances the sale of OREO to a buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present. |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Qualified Affordable Housing Project Investments | NOTE 21 - QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS The Company began investing in qualified housing projects in 2016. At March 31, 2020 and December 31, 2019, the balance of the investment for qualified affordable housing projects was $8.4 million and $8.6 million, respectively. This balance is reflected in the accrued interest and other assets line on the consolidated balance sheets. Total unfunded commitments related to the investments in qualified housing projects totaled $2.2 million and $4.2 million at March 31, 2020 and December 31, 2019, respectively. The Company expects to fulfill these commitments between 2020 and 2027. For the three months ended March 31, 2020 and 2019, the Company recognized amortization expense of $247,000 and $225,000, respectively, which was included within income tax expense on the consolidated statements of income. |
Recent Developments
Recent Developments | 3 Months Ended |
Mar. 31, 2020 | |
Recent Developments [Abstract] | |
Recent Developments | NOTE 22 - RECENT DEVELOPMENTS On April 20, 2020, RBB Bancorp announced a cash dividend of $0.06 per share for the first quarter of 2020. The dividend is payable on May 13, 2020 to common shareholders of record as of April 30, 2020. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2019, included in our Annual Report filed on Form 10-K for the fiscal year ended December 31, 2019 (our “2019 Annual Report”). |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It is reasonably possible our estimate of the allowance for loan losses and the fair value of mortgage servicing rights could change as actual results could differ from those estimates. Actual results could differ from those estimates. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements were compiled in accordance with the accounting policies set forth in Note 2 – Basis of Presentation and Summary of Significant Policies in our Consolidated Financial Statements as of and for the year ended December 31, 2019, included in our 2019 Annual Report. The accompanying consolidated unaudited financial statements reflect all adjustments consisting of normal recurring adjustments that, in the opinion of management, are necessary to reflect a fair statement of our consolidated financial condition, results of operations, and cash flows. The results of operations for acquired companies are included from the dates of acquisition. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020. The Financial Accounting Standards Board ("FASB") issues Accounting Standards Updates ("ASU" or “Update”) and Accounting Standards Codifications (“ASC”), which are the primary source of GAAP. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements When RBB conducted its initial public offering (“IPO”) in 2017, we qualified as an emerging growth company (“EGC”). We will remain an EGC until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.0 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of our IPO, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the date on which we are deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We anticipate no longer qualifying as an EGC on January 1, 2023. EGCs are entitled to reduced regulatory and reporting requirements under the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Our revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. Accordingly, the majority of the Company’s revenues will not be affected. In addition, the standard does not materially impact the timing or measurement of the Company’s revenue recognition as it is consistent with the Company’s existing accounting for contracts within the scope of the standard. As an EGC, the Company adopted ASU 2014-09 as of January 1, 2019, utilizing the modified prospective approach. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements, as substantially all of the Company’s revenues are excluded from the scope of the new standard. Since there was no net income impact upon adoption of this ASU, a cumulative effect adjustment to opening retained earnings was not deemed necessary. See Note 20 (Revenue from Contracts with Customers) for more information. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) he amendments in this Update to be effective for interim periods beginning after December 15, 2021 and annual periods beginning after December 15, 2020, for an EGC. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instrument (Topic 326) , including subsequent amending ASUs The Company anticipates adopting this ASU 2016-13 on that date. In February 2019, the U.S. federal bank regulatory agencies approved a final rule modifying their regulatory capital rules and providing an option to phase in over a three year period the day-one adverse regulatory capital effects of ASU 2016-13. Additionally, in March 2020, the U.S. federal bank regulatory agencies issued an interim final rule that provides banking organizations an option to delay the estimated CECL impact on regulatory capital for an additional two years for a total transition period of up to five years to provide regulatory relief to banking organizations to better focus on supporting lending to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the novel coronavirus disease 2019 ("COVID-19") pandemic. As a result, entities will have the option to gradually phase in the full effect of CECL on regulatory capital over a five-year transition period. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement at a minimum In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In November 2019, the FASB issued ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), Codification Improvements—Share-Based Consideration Payable to a Customer 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," which provides temporary optional expedients to ease the financial reporting burdens of the expected market transition from London Interbank Offered Rate (“LIBOR”) to an alternative reference rate such as Secured Overnight Financing Rate (“SOFR”). The guidance was effective upon issuance and generally can be applied through December 31, 2022. Of the Company’s $2.3 billion in total gross loans as of December 31, 2019, approximately 25% have a LIBOR based reference rate. The Company has several LIBOR based debt issues, refer to Notes 9 and 10 of the Company’s consolidated financial statements included in this Form 10-Q. We are currently evaluating this guidance to determine the date of adoption and the impact on the Company. |
Acquisition (Tables)
Acquisition (Tables) - PGB Holdings, Inc. | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of Assets Acquired and Liabilities Assumed and Fair Value Adjustments | The following table represents the assets acquired and liabilities assumed of PGBH as of January 10, 2020 and the fair value adjustments and amounts recorded by the Company in 2020 under the acquisition method of accounting: PGBH Fair Value Fair (dollars in thousands) Book Value Adjustments Value Assets acquired Cash and cash equivalents $ 17,033 $ — $ 17,033 Fed funds sold 8,300 — 8,300 Interest-bearing deposits in other financial Institutions 14,186 — 14,186 Loans, gross 172,443 715 173,158 Allowance for loan losses (2,265 ) 2,265 — Bank premises and equipment 6,394 1,639 8,033 Core deposit premium — 491 491 Investment in trust 155 — 155 Other assets 1,687 — 1,687 Total assets acquired $ 217,933 $ 5,110 $ 223,043 Liabilities assumed Deposits $ 187,393 $ 969 $ 188,362 Escrow Payable 4,277 — 4,277 Subordinated debentures 5,155 (763 ) 4,392 Deferred income taxes 1,016 1,588 2,604 Other liabilities 1,664 86 1,750 Total liabilities assumed 199,505 1,880 201,385 Excess of assets acquired over liabilities assumed 18,428 3,230 21,658 $ 217,933 $ 5,110 Cash paid 32,885 Goodwill recognized $ 11,227 |
Schedule of Loans Acquired | For loans acquired from PGBH, the contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates were as follows: PGBH Acquired Loans Contractual amounts due $ 195,227 Cash flows not expected to be collected 5,176 Expected cash flows 190,051 Interest component of expected cash flows 16,893 Fair value of acquired loans $ 173,158 |
Schedule of Net Interest and Other Income, Net Income and Earnings Per Share | The following table presents the net interest and other income, net income and earnings per share as if the acquisition of PGBH was effective as of January 1, 2020. There were no material, nonrecurring adjustments to the pro forma net interest and other income, net income and earnings per share presented below: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Net interest and other income $ 28,442 $ 32,225 Net income 5,582 10,956 Basic earnings per share 0.28 0.55 Diluted earnings per share 0.28 0.54 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities | The following table summarizes the amortized cost and fair value of available for sale (“AFS”) securities and held to maturity (“HTM”) securities March 31, 2020 and December 31, 2019, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair March 31, 2020 Cost Gains Losses Value Available for sale Government agency securities $ 1,410 $ 16 $ — $ 1,426 SBA agency securities 4,565 87 (5 ) 4,647 Mortgage-backed securities- Government sponsored agencies 18,260 520 (8 ) 18,772 Collateralized mortgage obligations 11,036 183 — 11,219 Corporate debt securities 90,185 204 (159 ) 90,230 Total $ 125,456 $ 1,010 $ (172 ) $ 126,294 Held to maturity Municipal taxable securities $ 3,003 $ 158 $ — $ 3,161 Municipal securities 4,822 171 — 4,993 Total $ 7,825 $ 329 $ — $ 8,154 December 31, 2019 Available for sale Government agency securities $ 1,591 $ — $ (19 ) $ 1,572 SBA agency securities 4,671 42 (22 ) 4,691 Mortgage-backed securities- Government sponsored agencies 19,126 74 (29 ) 19,171 Collateralized mortgage obligations 11,641 38 (25 ) 11,654 Corporate debt securities 88,700 281 — 88,981 Total $ 125,729 $ 435 $ (95 ) $ 126,069 Held to maturity Municipal taxable securities $ 3,505 $ 147 $ — $ 3,652 Municipal securities 4,827 153 — 4,980 Total $ 8,332 $ 300 $ — $ 8,632 |
Amortized Cost and Fair Value of Investment Securities Portfolio Expected Maturity | The amortized cost and fair value of the investment securities portfolio at March 31, 2020 and December 31, 2019 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Less than One Year More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Estimated Amortized Estimated Amortized Estimated Amortized Estimated Amortized Estimated (dollars in thousands) Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value March 31, 2020 Government agency securities $ — $ — $ 1,410 $ 1,426 $ — $ — $ — $ — $ 1,410 $ 1,426 SBA securities — — 656 678 3,909 3,969 — — 4,565 4,647 Mortgage-backed securities- Government sponsored agencies 3,532 3,566 14,728 15,206 — — — — 18,260 18,772 Collateralized mortgage obligations — — 8,855 8,984 2,181 2,235 — — 11,036 11,219 Corporate debt securities 72,413 72,415 2,002 1,998 11,762 11,937 4,008 3,880 90,185 90,230 Total available for sale $ 75,945 $ 75,981 $ 27,651 $ 28,292 $ 17,852 $ 18,141 $ 4,008 $ 3,880 $ 125,456 $ 126,294 Municipal taxable securities $ 787 $ 804 $ 1,712 $ 1,767 $ 504 $ 590 $ — $ — $ 3,003 $ 3,161 Municipal securities — — 40 40 876 903 3,906 4,050 4,822 4,993 Total held to maturity $ 787 $ 804 $ 1,752 $ 1,807 $ 1,380 $ 1,493 $ 3,906 $ 4,050 $ 7,825 $ 8,154 December 31, 2019 Government agency securities $ — $ — $ 1,591 $ 1,572 $ — $ — $ — $ — $ 1,591 $ 1,572 SBA securities — — 714 725 3,957 3,966 — — 4,671 4,691 Mortgage-backed securities- Government sponsored agencies 3,663 3,679 13,027 13,059 2,436 2,433 — — 19,126 19,171 Collateralized mortgage obligations — — 9,288 9,265 2,353 2,389 — — 11,641 11,654 Corporate debt securities 70,914 70,919 2,002 2,008 11,772 12,024 4,012 4,030 88,700 88,981 Total available for sale $ 74,577 $ 74,598 $ 26,622 $ 26,629 $ 20,518 $ 20,812 $ 4,012 $ 4,030 $ 125,729 $ 126,069 Municipal taxable securities $ 285 $ 289 $ 2,716 $ 2,784 $ 504 $ 579 $ — $ — $ 3,505 $ 3,652 Municipal securities — — 40 40 366 379 4,421 4,561 4,827 4,980 Total held to maturity $ 285 $ 289 $ 2,756 $ 2,824 $ 870 $ 958 $ 4,421 $ 4,561 $ 8,332 $ 8,632 |
Summary of Investment Securities With Unrealized Losses | The following table summarizes investment securities with unrealized losses at March 31, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position: Less than Twelve Months Twelve Months or More Total (dollars in thousands) Unrealized Losses Estimated Fair Value No. of Issuances Unrealized Losses Estimated Fair Value No. of Issuances Unrealized Losses Estimated Fair Value No. of Issuances March 31, 2020 SBA securities $ (5 ) $ 1,440 2 $ — $ — — $ (5 ) $ 1,440 2 Mortgage-backed securities- Government sponsored agencies (8 ) 1,039 6 — — — (8 ) 1,039 6 Corporate debt securities (159 ) 7,971 4 — — — (159 ) 7,971 4 Total available for sale $ (172 ) $ 10,450 12 $ — $ — — $ (172 ) $ 10,450 12 Municipal securities $ — $ — — $ — $ — — $ — $ — — Total held to maturity $ — $ — — $ — $ — — $ — $ — — December 31, 2019 Government agency securities $ (19 ) $ 1,572 2 $ — $ — — $ (19 ) $ 1,572 2 SBA securities (22 ) 1,469 2 — — — (22 ) 1,469 2 Mortgage-backed securities- Government sponsored agencies (5 ) 2,631 4 (24 ) 3,912 6 (29 ) 6,543 10 Collateralized mortgage obligations (10 ) 5,738 3 (15 ) 953 2 (25 ) 6,691 5 Total available for sale $ (56 ) $ 11,410 11 $ (39 ) $ 4,865 8 $ (95 ) $ 16,275 19 Municipal securities $ — $ — — $ — $ — — $ — $ — — Total held to maturity $ — $ — — $ — $ — — $ — $ — — |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of Balance and Activity Related to Allowance for Loan Losses for Held for Investment Loans and the Recorded Investments in Loans and Impairment method by Portfolio Segment | The following tables present the balance and activity related to the allowance for loan losses for held for investment loans by type for the periods presented. Three Months Ended March 31, 2020 2019 (dollars in thousands) Real Estate Commercial Other Unallocated Total Real Estate Commercial Other Total Allowance for loan losses: Beginning balance $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 $ 13,437 $ 4,140 $ — $ 17,577 Additions (reductions) to the allowance charged to expense 1,273 735 7 (70 ) 1,945 952 (405 ) 3 550 Charge-offs on loans — (631 ) — — (631 ) — — — — Recoveries on loans — — — — — — 109 — 109 Ending balance $ 16,391 $ 3,692 $ 16 $ 31 $ 20,130 $ 14,389 $ 3,844 $ 3 $ 18,236 For the year end December 31, 2019 (dollars in thousands) Real Estate Commercial Other Unallocated Total Allowance for loan losses: Beginning of year $ 13,437 $ 4,140 $ — $ — $ 17,577 Additions (reductions) to the allowance charged to expense 1,847 433 9 101 2,390 Charge-offs on loans (166 ) (1,093 ) — — (1,259 ) Recoveries on loans — 108 — — 108 Ending balance $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 The following table presents the recorded investment in loans and impairment method as of March 31, 2020 and March 31, 2019, and the activity in the allowance for loan losses for the year ended December 31, 2019, by portfolio segment: (dollars in thousands) March 31, 2020 Real Estate Commercial Other Unallocated Total Reserves: Specific $ — $ — $ — $ — $ — General 16,391 3,692 16 31 20,130 Total allowance for loan losses $ 16,391 $ 3,692 $ 16 $ 31 $ 20,130 Loans evaluated for impairment: Individually 5,376 14,898 — — 20,274 Collectively 2,039,968 338,270 1,470 — 2,379,708 Total loans, net of deferred loan fees and unaccreted discount on acquired loans $ 2,045,344 $ 353,168 $ 1,470 $ — $ 2,399,982 March 31, 2019 Real Estate Commercial Unallocated Total Reserves: Specific $ — $ 11 $ — $ 11 General 14,389 3,833 3 18,225 Total allowance for loan losses 14,389 3,844 3 18,236 Loans evaluated for impairment: Individually 2,365 221 — 2,586 Collectively 1,765,585 351,906 336 2,117,827 Total loans, net of deferred loan fees and unaccreted discount on acquired loans $ 1,767,950 $ 352,127 $ 336 $ 2,120,413 December 31, 2019 Real Estate Commercial Other Unallocated Total Reserves: Specific $ — $ — $ — $ — $ — General 15,118 3,588 9 101 18,816 Loans acquired with deteriorated credit quality — — — — Total allowance for loan losses $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 Loans evaluated for impairment: Individually $ 3,795 $ 9,423 $ — $ — $ 13,218 Collectively 1,842,747 340,148 821 — 2,183,716 Loans acquired with deteriorated credit quality — — — — Total loans, net of deferred loan fees and unaccreted discount on acquired loans $ 1,846,542 $ 349,571 $ 821 $ — $ 2,196,934 |
Summary of Risk Category of Loans by Class of Loans | The risk category of loans by class of loans was as follows at March 31, 2020 and December 31, 2019: (dollars in thousands) Special March 31, 2020 Pass Mention Substandard Impaired (1) Total Real estate: Construction and land development $ 119,681 $ — $ 173 $ 261 $ 120,115 Commercial real estate 804,312 29,073 19,009 2,186 854,580 Single-family residential mortgages 1,066,360 495 865 2,929 1,070,649 Commercial: Other 261,934 6,080 5,719 1,869 275,602 SBA 59,897 189 4,451 13,029 77,566 Other: 1,470 — — — 1,470 Total loans $ 2,313,654 $ 35,837 $ 30,217 $ 20,274 $ 2,399,982 (dollars in thousands) Special December 31, 2019 Pass Mention Substandard Impaired (1) Total Real estate: Construction and land development $ 95,756 $ — $ — $ 264 $ 96,020 Commercial real estate 767,603 5,353 18,115 2,197 793,268 Single-family residential mortgages 955,327 — 593 1,334 957,254 Commercial: Other 265,178 4,078 5,330 — 274,586 SBA 61,496 189 3,877 9,423 74,985 Other: 821 — — — 821 Total loans $ 2,146,181 $ 9,620 $ 27,915 $ 13,218 $ 2,196,934 (1) Loans, net of deferred fees |
Summary of Aging Recorded Investment Past-due Loans | The following table presents the aging of the recorded investment in past-due loans at March 31, 2020 and December 31, 2019 by class of loans: (dollars in thousands) 30-59 60-89 90 Days Total Loans Not Total Non- Accrual March 31, 2020 Days Days Or More Past Due Past Due Loans Loans (1) Real estate: Construction and land development $ — $ — $ — $ — $ 120,115 $ 120,115 $ — Commercial real estate 11,606 — 725 12,331 842,249 854,580 725 Single-family residential mortgages 3,048 2,669 1,813 7,530 1,063,119 1,070,649 2,930 Commercial: Other 1,554 1,090 1,315 3,959 271,643 275,602 1,363 SBA 2,671 646 12,987 16,304 61,262 77,566 12,987 Other: 74 — — 74 1,396 1,470 — $ 18,953 $ 4,405 $ 16,840 $ 40,198 $ 2,359,784 $ 2,399,982 $ 18,005 Real estate: Single-family residential mortgages held for sale $ 404 $ — $ — $ 404 $ 51,692 $ 52,096 $ — 30-59 60-89 90 Days Total Loans Not Total Non- Accrual December 31, 2019 Days Days Or More Past Due Past Due Loans Loans (1) Real estate: Construction and land development $ — $ — $ — $ — $ 96,020 $ 96,020 $ — Commercial real estate — — 725 725 792,543 793,268 725 Single-family residential mortgages 1,454 1,560 450 3,464 953,790 957,254 1,334 Commercial: Other — — — — 274,586 274,586 — SBA 2,263 — 9,378 11,641 63,344 74,985 9,378 Other: — — — — 821 821 — $ 3,717 $ 1,560 $ 10,553 $ 15,830 $ 2,181,104 $ 2,196,934 $ 11,437 Real estate: Single-family residential mortgages held for sale $ — $ — $ — $ — $ 108,194 $ 108,194 $ — (1) Included in total loans. |
Summary of Individually Impaired Loans Presented by Class of Loans | Information relating to individually impaired loans presented by class of loans was as follows at March 31, 2020 and December 31, 2019: (dollars in thousands) Principal Recorded Related March 31, 2020 Balance Investment Allowance With no related allowance recorded Construction and land development $ 261 $ 261 $ — Commercial and industrial 1,881 1,869 Commercial real estate 2,186 2,186 — Residential mortgage loans 2,965 2,929 — Commercial – SBA 13,039 13,029 — With related allowance recorded Commercial and industrial — — — Single-family residential mortgage — — — Total $ 20,332 $ 20,274 $ — (dollars in thousands) Principal Recorded Average Interest Related December 31, 2019 Balance Investment Balance Income Allowance With no related allowance recorded Construction and land development $ 264 $ 264 $ 271 $ 24 $ — Commercial real estate 2,198 2,197 2,384 100 — Residential mortgage loans 1,349 1,334 1,351 — — Commercial – SBA 9,423 9,423 10,791 4 — With related allowance recorded Commercial – SBA — — — — — Total $ 13,234 $ 13,218 $ 14,797 $ 128 $ — |
Summary of Impaired Loans and Leases | The following table presents information on impaired loans and leases, disaggregated by loan segment, for the periods indicated: Three Months Ended March 31, 2020 March 31, 2019 Average Interest Average Interest (dollars in thousands) Balance Income Balance Income With no related allowance recorded Construction and land development $ 262 $ 2 $ 275 $ 6 Commercial and industrial 1,987 9 — — Commercial real estate 2,423 25 2,100 17 Residential mortgage loans 2,962 — — — Commercial – SBA 15,153 1 56 1 With related allowance recorded Commercial - SBA — — 166 — $ 22,787 $ 37 $ 2,597 $ 24 |
Summary of Loans by Class Modified as TDRs | The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2020. There was one loan modified as a TDR during the three months ended March 31, 2020. There were no new TDRs during the three months ended March 31, 2019. The modification of the terms generally included loans where a moratorium on loan payments was granted. Such moratoriums ranged from six months to nine months on the loans restructured in 2020 and 2019. Pre- Post- Modification Modification (dollars in thousands) Number of Recorded Recorded March 31, 2020 Loans Investment Investment Commercial and industrial 1 506 506 Total 1 $ 506 $ 506 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loan Servicing [Abstract] | |
Schedule of Principal Balances of Mortgage and SBA Loans Serviced for Others | Mortgage and SBA loans serviced for others are not reported as assets. The principal balances at March 31, 2020 and December 31, 2019 are as follows: March 31, December 31, (dollars in thousands) 2020 2019 Loans serviced for others: Mortgage loans $ 1,673,304 $ 1,683,298 SBA loans $ 156,750 $ 170,849 Commercial real estate loans $ 4,199 $ 4,216 |
Schedule of Amortization of Mortgage Servicing Rights Netted Against Loan Servicing Fee Income | The amortization of mortgage servicing rights is netted against loan servicing fee income. Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Mortgage SBA Mortgage SBA (dollars in thousands) Loans Loans Loans Loans Servicing assets: Beginning of period $ 12,997 $ 4,086 $ 12,858 $ 4,512 Additions 789 38 604 112 Disposals (343 ) (217 ) (33 ) (127 ) Amortized to expense (382 ) (142 ) (466 ) (172 ) End of period $ 13,061 $ 3,765 $ 12,963 $ 4,325 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Future Estimated Amortization Expense | Estimated CDI amortization expense for future years is as follows: (dollars in thousands) As of March 31: Remainder of 2020 $ 1,037 2021 1,121 2022 936 2023 800 2024 683 Thereafter 1,657 Total $ 6,234 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Maturities Of Time Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | At March 31, 2020, the scheduled maturities of time deposits are as follows: (dollars in thousands) March 31, 2020 One year $ 1,267,249 Two to three years 76,236 Over three years 16,301 Total $ 1,359,786 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | At March 31, 2020 and December 31, 2019, long-term debt was as follows: March 31, December 31, (dollars in thousands) 2020 2019 Principal $ 105,000 $ 105,000 Unamortized debt issuance costs $ 865 $ 951 |
Schedule of Interest and Amortization Expense | The following table presents interest and amortization expense the Company incurred for the three months ended March 31, 2020 and 2019: For the Three Months Ended March 31, (dollars in thousands) 2020 2019 Interest Expense: Interest $ 1,662 $ 1,662 Amortization 86 85 |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rent Payments on Company's Leases | Future minimum rent payments on the Company’s leases were as follows at March 31, 2020: (dollars in thousands) Year ending December 31: 2020 remaining $ 4,241 2021 4,751 2022 4,284 2023 3,322 2024 2,224 Thereafter 9,016 Total $ 27,838 |
Schedule of Financial Commitments whose Contractual Amount Represents Credit Risk | At March 31, 2020 and December 31, 2019, the Company had the following financial commitments whose contractual amount represents credit risk: March 31, December 31, (dollars in thousands) 2020 2019 Commitments to extend credit $ 387,248 $ 326,126 Commercial and similar letters of credit 227 358 Standby letters of credit 3,963 3,715 Total $ 391,438 $ 330,199 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Loans to principal officers, directors, and their affiliates were as follows: March 31, December 31, (dollars in thousands) 2020 2019 Beginning balance $ 4,000 $ 3,600 New loans and advances 4,000 16,180 Repayments (4,000 ) $ (15,780 ) Ending balance $ 4,000 $ 4,000 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Weighted Average Assumption for Fair Value of Option Grant Estimated Using Black-Scholes Option Pricing Model | The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions presented below for 2020 and 2019. 2020 2019 Expected volatility 28.5 % 35.0 % Expected term 6.0 years 6.0 years Expected dividends 1.99 % 1.90 % Risk free rate 1.31 % 2.66 % Grant date fair value $ 4.61 $ 6.32 |
Summary of Awards Pursuant to Stock Option Plans | A summary of the status of awards pursuant to the Company's stock option plans as of March 31, 2020 and changes during the three months ended ended is presented below: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic (dollars in thousands, except for share amounts) Shares Price Term Value Outstanding at beginning of year 1,090,968 $ 13.11 Granted 51,000 20.10 Exercised (56,498 ) 12.61 Forfeited/cancelled (4,000 ) 18.38 Outstanding at end of year 1,081,470 $ 13.45 4.10 years $ 1,826 Options exercisable 982,470 $ 12.87 3.57 years $ 1,826 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking And Thrift [Abstract] | |
Summary of Company and Bank Continue to Exceed Regulatory Capital Minimum Requirements and Bank Continues to Exceed Well Capitalized Standards | As defined in applicable regulations and set forth in the tables below, RBB and the Bank continue to exceed the regulatory capital minimum requirements and the Bank continues to exceed the "well capitalized" standards at the dates indicated: Amount of Capital Required Minimum Required Plus To Be Well- Minimum Required Capital Capitalized Actual for Capital Adequacy Purposes Conservation Buffer Fully Phased-In Under Prompt Corrective Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of March 31, 2020: Tier 1 Leverage Ratio Consolidated $ 347,133 11.74 % NA NA NA NA NA NA Bank 426,236 14.44 % $ 118,042 4.0 % $ 118,042 4.0 % $ 147,552 5.0 % Common Equity Tier 1 Risk- Based Capital Ratio Consolidated 333,013 15.45 % NA NA NA NA NA NA Bank 426,236 19.79 % 96,911 4.5 % 150,750 7.0 % 139,982 6.5 % Tier 1 Risk-Based Capital Ratio Consolidated 347,133 16.10 % NA NA NA NA NA NA Bank 426,236 19.79 % 129,214 6.0 % 183,054 8.5 % 172,286 8.0 % Total Risk-Based Capital Ratio Consolidated 472,376 21.91 % NA NA NA NA NA NA Bank 447,344 20.77 % 172,286 8.0 % 226,125 10.5 % 215,357 10.0 % Amount of Capital Required Minimum Required Plus To Be Well- Minimum Required for Capital Adequacy Capital Conservation Buffer Capitalized Under Prompt Corrective Actual Purposes Fully Phased-In Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Tier 1 Leverage Ratio Consolidated $ 353,572 12.89 % NA NA NA NA NA NA Bank 417,036 15.23 % $ 108,150 4.0 % $ 108,150 4.0 % $ 135,187 5.0 % Common Equity Tier 1 Risk- Based Capital Ratio Consolidated 343,899 17.16 % NA NA NA NA NA NA Bank 417,036 20.87 % 89,127 4.5 % 138,642 7.0 % 128,739 6.5 % Tier 1 Risk-Based Capital Ratio Consolidated 353,572 17.65 % NA NA NA NA NA NA Bank 417,036 20.87 % 118,836 6.0 % 168,351 8.5 % 158,448 8.0 % Total Risk-Based Capital Ratio Consolidated 477,262 23.82 % NA NA NA NA NA NA Bank 436,677 21.86 % 158,448 8.0 % 207,964 10.5 % 198,061 10.0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Hierarchy and Fair Value for Each Major Category of Assets and Liabilities Measured at Fair Value | The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value at March 31, 2020 and December 31, 2019: (dollars in thousands) Fair Value Measurements Using: March 31, 2020 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ — $ 1,426 $ — $ 1,426 SBA agency securities — 4,647 — 4,647 Mortgage-backed securities — 18,772 — 18,772 Collateralized mortgage obligations — 11,219 — 11,219 Corporate debt securities — 90,230 — 90,230 $ — $ 126,294 $ — $ 126,294 On a non-recurring basis: Commercial real estate - collateral dependent impaired loans $ — $ — $ 3,608 $ 3,608 Other real estate owned — — 293 293 $ — $ — $ 3,901 $ 3,901 December 31, 2019 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ — $ 1,572 $ — $ 1,572 SBA agency securities — 4,691 — 4,691 Mortgage-backed securities — 19,171 — 19,171 Collateralized mortgage obligations — 11,654 — 11,654 Commercial paper — 69,898 — 69,898 Corporate debt securities — 19,083 — 19,083 $ — $ 126,069 $ — $ 126,069 On a non-recurring basis: Other real estate owned $ — $ — $ 293 $ 293 |
Summary of Quantitative Information About Impaired Loans and OREO Non-recurring Level 3 Fair Value Measurements | Quantitative information about the Company's impaired loans and OREO non-recurring Level 3 fair value measurements at March 31, 2020 and December 31, 2019 is as follows: (dollars in thousands) Fair Value Valuation Unobservable Adjustment March 31, 2020 Amount Technique Input Range Collateral dependent impaired loans - commercial real estate $ 3,608 Third Party Appraisals Management Adjustments to Reflect Current Conditions and Selling Costs 5% - 6% Other real estate owned $ 293 Third Party Appraisals Management Adjustments to Reflect Current Conditions and Selling Costs 5%-6% December 31, 2019 Other real estate owned $ 293 Third Party Management Adjustments 5%-6% Appraisals to Reflect Current Conditions and Selling Costs |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy Level and Estimated Fair Value of Significant Financial Instruments | The fair value hierarchy level and estimated fair value of significant financial instruments at March 31, 2020 and December 31, 2019 are summarized as follows: March 31, December 31, 2020 2019 Fair Value Carrying Fair Carrying Fair (dollars in thousands) Hierarchy Value Value Value Value Financial Assets: Cash and due from banks Level 1 $ 285,667 $ 285,667 $ 114,763 $ 114,763 Federal funds sold and other cash equivalents Level 1 75,300 75,300 67,000 67,000 Interest-earning deposits in other financial institutions Level 1 600 600 600 600 Investment securities - AFS Level 2 126,294 126,294 126,069 126,069 Investment securities - HTM Level 2 7,825 8,154 8,332 8,632 Mortgage loans held for sale Level 1 52,096 52,664 108,194 109,385 Loans, net Level 3 2,379,852 2,325,638 2,178,118 2,158,970 Equity security Level 3 11,817 11,817 11,826 11,826 Mortgage serving rights Level 2 16,826 17,251 17,083 20,752 Financial Liabilities: Deposits Level 2 $ 2,435,981 $ 2,427,037 $ 2,248,938 $ 2,236,329 FHLB advances Level 2 150,000 150,000 — — Long-term debt Level 2 104,135 131,284 104,049 109,877 Subordinated debentures Level 3 14,120 20,902 9,673 11,709 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Shares Outstanding to Income and Number of Shares Used to Compute EPS | The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute earnings per share (“EPS”): For the Three Months Ended March 31, 2020 2019 (dollars in thousands except per share amounts) Income Shares Income Shares Net income as reported $ 6,748 $ 10,380 Less: Earnings allocated to participating securities (10 ) (22 ) Shares outstanding 19,739,280 20,073,991 Impact of weighting shares 232,576 (69,700 ) Used in basic EPS 6,738 19,971,856 10,358 20,004,291 Dilutive effect of outstanding Stock options 294,472 389,025 Used in dilutive EPS $ 6,738 20,266,328 $ 10,358 20,393,316 Basic earnings per common share $ 0.34 $ 0.52 Diluted earnings per common share 0.33 0.51 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue From Contracts With Customers in-Scope and Not in-Scope under Topic 606 | The following is a summary of revenue from contracts with customers that are in-scope and not in-scope under Topic 606: For the Three Months Ended March 31, (dollars in thousands) 2020 2019 Non-interest income, in scope (1) Fees and service charges on deposit accounts $ 451 $ 298 Other fees (2) 149 198 Other income (3) 452 291 Total in-scope non-interest income 1,052 787 Non-interest income, not in scope (4) 3,563 3,415 Total non-interest income $ 4,615 $ 4,202 (1) There were no adjustments to the Company's financial statements recorded as a result of the adoption of ASC 606. (2) Other fees consists of wealth management fees, miscellaneous loan fees and postage/courier fees. (3) Other income consists of safe deposit box rental income, wire transfer fees, security brokerage fees, annuity sales, insurance activity and OREO income. (4) The amounts primarily represent revenue from contracts with customers that are out of scope of ASC 606: Net loan servicing income, letter of credit commissions, import/export commissions, recoveries on purchased loans, BOLI income, and gains (losses) on sales of mortgage loans, loans and investment securities. |
Business Description - Addition
Business Description - Additional Information (Details) $ in Thousands | 3 Months Ended | 105 Months Ended | |||
Mar. 31, 2020USD ($)Branch | Mar. 31, 2020USD ($)AcquisitionBranch | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Description Of Business [Line Items] | |||||
Total consolidated assets | $ 3,128,653 | $ 3,128,653 | $ 2,788,535 | ||
Gross consolidated loans held for investment and held for sale | 2,500,000 | ||||
Total consolidated deposits | 2,435,981 | 2,435,981 | 2,248,938 | ||
Total consolidated stockholders' Equity | $ 407,993 | $ 407,993 | $ 407,690 | $ 384,803 | $ 374,621 |
Number of acquisitions | Acquisition | 6 | ||||
PGB Holdings, Inc. | Illinois | |||||
Description Of Business [Line Items] | |||||
Number of branches operated | Branch | 3 | 3 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Total gross loans | $ 2,300 | |
Percentage of gross loans with LIBOR based reference rate | 25.00% | |
Minimum | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Right-of-use asset | $ 25 | |
Lease liability | 25 | |
Maximum | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Right-of-use asset | 30 | |
Lease liability | $ 30 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) $ in Thousands | Jan. 10, 2020USD ($)Branch | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 69,790 | $ 58,563 | |
PGB Holdings, Inc. | |||
Business Acquisition [Line Items] | |||
Business acquisition, date | Jan. 10, 2020 | ||
Cash consideration | $ 32,885 | ||
Goodwill | $ 11,227 | ||
PGB Holdings, Inc. | Illinois | |||
Business Acquisition [Line Items] | |||
Number of branches operated | Branch | 3 |
Acquisition - Schedule of Asset
Acquisition - Schedule of Assets Acquired and Liabilities Assumed and Fair Value Adjustments (Details) - USD ($) $ in Thousands | Jan. 10, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill recognized | $ 69,790 | $ 58,563 | |
PGB Holdings, Inc. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 17,033 | ||
Fed funds sold | 8,300 | ||
Interest-bearing deposits in other financial Institutions | 14,186 | ||
Loans, gross | 173,158 | ||
Bank premises and equipment | 8,033 | ||
Core deposit premium | 491 | ||
Investment in trust | 155 | ||
Other assets | 1,687 | ||
Total assets acquired | 223,043 | ||
Deposits | 188,362 | ||
Escrow Payable | 4,277 | ||
Subordinated debentures | 4,392 | ||
Deferred income taxes | 2,604 | ||
Other liabilities | 1,750 | ||
Total liabilities assumed | 201,385 | ||
Excess of assets acquired over liabilities assumed | 21,658 | ||
Cash paid | 32,885 | ||
Goodwill recognized | 11,227 | ||
PGB Holdings, Inc. | Book Value | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 17,033 | ||
Fed funds sold | 8,300 | ||
Interest-bearing deposits in other financial Institutions | 14,186 | ||
Loans, gross | 172,443 | ||
Allowance for loan losses | (2,265) | ||
Bank premises and equipment | 6,394 | ||
Investment in trust | 155 | ||
Other assets | 1,687 | ||
Total assets acquired | 217,933 | ||
Deposits | 187,393 | ||
Escrow Payable | 4,277 | ||
Subordinated debentures | 5,155 | ||
Deferred income taxes | 1,016 | ||
Other liabilities | 1,664 | ||
Total liabilities assumed | 199,505 | ||
Excess of assets acquired over liabilities assumed | 18,428 | ||
Business combination, Recognized identifiable assets acquired and liabilities assumed, net | 217,933 | ||
PGB Holdings, Inc. | Fair Value Adjustments | |||
Business Acquisition [Line Items] | |||
Loans, gross | 715 | ||
Allowance for loan losses | 2,265 | ||
Bank premises and equipment | 1,639 | ||
Core deposit premium | 491 | ||
Total assets acquired | 5,110 | ||
Deposits | 969 | ||
Subordinated debentures | (763) | ||
Deferred income taxes | 1,588 | ||
Other liabilities | 86 | ||
Total liabilities assumed | 1,880 | ||
Excess of assets acquired over liabilities assumed | 3,230 | ||
Business combination, Recognized identifiable assets acquired and liabilities assumed, net | $ 5,110 |
Acquisition - Schedule of Loans
Acquisition - Schedule of Loans Acquired (Details) - PGB Holdings, Inc. $ in Thousands | Jan. 10, 2020USD ($) |
Business Acquisition [Line Items] | |
Contractual amounts due | $ 195,227 |
Cash flows not expected to be collected | 5,176 |
Expected cash flows | 190,051 |
Interest component of expected cash flows | 16,893 |
Fair value of acquired loans | $ 173,158 |
Acquisition - Schedule of Net I
Acquisition - Schedule of Net Interest and Other Income, Net Income and Earnings Per Share (Details) - PGB Holdings, Inc. - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Net interest and other income | $ 28,442 | $ 32,225 |
Net income | $ 5,582 | $ 10,956 |
Basic earnings per share | $ 0.28 | $ 0.55 |
Diluted earnings per share | $ 0.28 | $ 0.54 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities - (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | $ 125,456 | $ 125,729 |
Available for sale, Gross Unrealized Gains | 1,010 | 435 |
Available for sale, Gross Unrealized Losses | (172) | (95) |
Available for sale, Fair Value | 126,294 | 126,069 |
Held to maturity, Amortized Cost | 7,825 | 8,332 |
Held to maturity, Gross Unrealized Gains | 329 | 300 |
Securities held to maturity, fair value | 8,154 | 8,632 |
Government Agency Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 1,410 | 1,591 |
Available for sale, Gross Unrealized Gains | 16 | |
Available for sale, Gross Unrealized Losses | (19) | |
Available for sale, Fair Value | 1,426 | 1,572 |
SBA Agency Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 4,565 | 4,671 |
Available for sale, Gross Unrealized Gains | 87 | 42 |
Available for sale, Gross Unrealized Losses | (5) | (22) |
Available for sale, Fair Value | 4,647 | 4,691 |
Mortgage-Backed Securities - Government Sponsored Agencies | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 18,260 | 19,126 |
Available for sale, Gross Unrealized Gains | 520 | 74 |
Available for sale, Gross Unrealized Losses | (8) | (29) |
Available for sale, Fair Value | 18,772 | 19,171 |
Collateralized Mortgage Obligations | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 11,036 | 11,641 |
Available for sale, Gross Unrealized Gains | 183 | 38 |
Available for sale, Gross Unrealized Losses | (25) | |
Available for sale, Fair Value | 11,219 | 11,654 |
Corporate Debt Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 90,185 | 88,700 |
Available for sale, Gross Unrealized Gains | 204 | 281 |
Available for sale, Gross Unrealized Losses | (159) | |
Available for sale, Fair Value | 90,230 | 88,981 |
Municipal Taxable Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 3,003 | 3,505 |
Held to maturity, Gross Unrealized Gains | 158 | 147 |
Securities held to maturity, fair value | 3,161 | 3,652 |
Municipal Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 4,822 | 4,827 |
Held to maturity, Gross Unrealized Gains | 171 | 153 |
Securities held to maturity, fair value | $ 4,993 | $ 4,980 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Mar. 31, 2020USD ($)Security | Dec. 31, 2019USD ($)Security |
Investments Debt And Equity Securities [Abstract] | ||
Number of investment securities pledged as collateral | Security | 1 | 1 |
Fair value of securities pledged to secure local agency deposit | $ | $ 608,000 | $ 627,000 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Investment Securities Portfolio Expected Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Amortized Cost | $ 75,945 | $ 74,577 |
More than one year to five years, Available for sale, Amortized Cost | 27,651 | 26,622 |
More than five years to ten years, Available for sale, Amortized Cost | 17,852 | 20,518 |
More than ten years, Available for sale, Amortized Cost | 4,008 | 4,012 |
Available for sale, Amortized Cost | 125,456 | 125,729 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Estimated Fair Value | 75,981 | 74,598 |
More than one year, Available for sale, Estimated Fair Value | 28,292 | 26,629 |
More than five years to ten years, Available for sale, Estimated Fair Value | 18,141 | 20,812 |
More than ten years, Available for sale, Estimated Fair Value | 3,880 | 4,030 |
Available for sale, Estimated Fair value | 126,294 | 126,069 |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
Less than one year, Held to Maturity, Amortized Cost | 787 | 285 |
More than one year to five years, Held to Maturity, Amortized Cost | 1,752 | 2,756 |
More than five years to ten years, Held to Maturity, Amortized Cost | 1,380 | 870 |
More than ten years, Held to Maturity, Amortized Cost | 3,906 | 4,421 |
Held to maturity, Amortized Cost | 7,825 | 8,332 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year, Held to Maturity, Estimated Fair Value | 804 | 289 |
More than one year to five years, Held to Maturity, Estimated Fair Value | 1,807 | 2,824 |
More than five years to ten years, Held to Maturity, Estimated Fair Value | 1,493 | 958 |
More than ten years, Held to Maturity,Estimated Fair Value | 4,050 | 4,561 |
Held to Maturity, Estimated Fair Value | 8,154 | 8,632 |
Government Agency Securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
More than one year to five years, Available for sale, Amortized Cost | 1,410 | 1,591 |
Available for sale, Amortized Cost | 1,410 | 1,591 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
More than one year, Available for sale, Estimated Fair Value | 1,426 | 1,572 |
Available for sale, Estimated Fair value | 1,426 | 1,572 |
Mortgage-Backed Securities - Government Sponsored Agencies | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Amortized Cost | 3,532 | 3,663 |
More than one year to five years, Available for sale, Amortized Cost | 14,728 | 13,027 |
More than five years to ten years, Available for sale, Amortized Cost | 2,436 | |
Available for sale, Amortized Cost | 18,260 | 19,126 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Estimated Fair Value | 3,566 | 3,679 |
More than one year, Available for sale, Estimated Fair Value | 15,206 | 13,059 |
More than five years to ten years, Available for sale, Estimated Fair Value | 2,433 | |
Available for sale, Estimated Fair value | 18,772 | 19,171 |
Collateralized Mortgage Obligations | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
More than one year to five years, Available for sale, Amortized Cost | 8,855 | 9,288 |
More than five years to ten years, Available for sale, Amortized Cost | 2,181 | 2,353 |
Available for sale, Amortized Cost | 11,036 | 11,641 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
More than one year, Available for sale, Estimated Fair Value | 8,984 | 9,265 |
More than five years to ten years, Available for sale, Estimated Fair Value | 2,235 | 2,389 |
Available for sale, Estimated Fair value | 11,219 | 11,654 |
Corporate Debt Securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Amortized Cost | 72,413 | 70,914 |
More than one year to five years, Available for sale, Amortized Cost | 2,002 | 2,002 |
More than five years to ten years, Available for sale, Amortized Cost | 11,762 | 11,772 |
More than ten years, Available for sale, Amortized Cost | 4,008 | 4,012 |
Available for sale, Amortized Cost | 90,185 | 88,700 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Estimated Fair Value | 72,415 | 70,919 |
More than one year, Available for sale, Estimated Fair Value | 1,998 | 2,008 |
More than five years to ten years, Available for sale, Estimated Fair Value | 11,937 | 12,024 |
More than ten years, Available for sale, Estimated Fair Value | 3,880 | 4,030 |
Available for sale, Estimated Fair value | 90,230 | 88,981 |
Municipal Taxable Securities | ||
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
Less than one year, Held to Maturity, Amortized Cost | 787 | 285 |
More than one year to five years, Held to Maturity, Amortized Cost | 1,712 | 2,716 |
More than five years to ten years, Held to Maturity, Amortized Cost | 504 | 504 |
Held to maturity, Amortized Cost | 3,003 | 3,505 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year, Held to Maturity, Estimated Fair Value | 804 | 289 |
More than one year to five years, Held to Maturity, Estimated Fair Value | 1,767 | 2,784 |
More than five years to ten years, Held to Maturity, Estimated Fair Value | 590 | 579 |
Held to Maturity, Estimated Fair Value | 3,161 | 3,652 |
Municipal Securities | ||
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
More than one year to five years, Held to Maturity, Amortized Cost | 40 | 40 |
More than five years to ten years, Held to Maturity, Amortized Cost | 876 | 366 |
More than ten years, Held to Maturity, Amortized Cost | 3,906 | 4,421 |
Held to maturity, Amortized Cost | 4,822 | 4,827 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
More than one year to five years, Held to Maturity, Estimated Fair Value | 40 | 40 |
More than five years to ten years, Held to Maturity, Estimated Fair Value | 903 | 379 |
More than ten years, Held to Maturity,Estimated Fair Value | 4,050 | 4,561 |
Held to Maturity, Estimated Fair Value | 4,993 | 4,980 |
SBA Securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
More than one year to five years, Available for sale, Amortized Cost | 656 | 714 |
More than five years to ten years, Available for sale, Amortized Cost | 3,909 | 3,957 |
Available for sale, Amortized Cost | 4,565 | 4,671 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
More than one year, Available for sale, Estimated Fair Value | 678 | 725 |
More than five years to ten years, Available for sale, Estimated Fair Value | 3,969 | 3,966 |
Available for sale, Estimated Fair value | $ 4,647 | $ 4,691 |
Investment Securities - Summa_2
Investment Securities - Summary of Investment Securities With Unrealized Losses (Details) $ in Thousands | Mar. 31, 2020USD ($)Security | Dec. 31, 2019USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (172) | $ (56) |
Less than Twelve Months Estimated Fair Value | $ 10,450 | $ 11,410 |
Less than Twelve Months No. of Issuances | Security | 12 | 11 |
Twelve Months or More Unrealized Losses | $ (39) | |
Twelve Months or More Estimated Fair Value | $ 4,865 | |
Twelve Months or More No. of Issuances | Security | 8 | |
Total Unrealized Losses | $ (172) | $ (95) |
Total Estimated Fair Value | $ 10,450 | $ 16,275 |
Available for sale, Total No. of Issuances | Security | 12 | 19 |
SBA Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (5) | $ (22) |
Less than Twelve Months Estimated Fair Value | $ 1,440 | $ 1,469 |
Less than Twelve Months No. of Issuances | Security | 2 | 2 |
Total Unrealized Losses | $ (5) | $ (22) |
Total Estimated Fair Value | $ 1,440 | $ 1,469 |
Available for sale, Total No. of Issuances | Security | 2 | 2 |
Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (19) | |
Less than Twelve Months Estimated Fair Value | $ 1,572 | |
Less than Twelve Months No. of Issuances | Security | 2 | |
Total Unrealized Losses | $ (19) | |
Total Estimated Fair Value | $ 1,572 | |
Available for sale, Total No. of Issuances | Security | 2 | |
Mortgage-Backed Securities - Government Sponsored Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (8) | $ (5) |
Less than Twelve Months Estimated Fair Value | $ 1,039 | $ 2,631 |
Less than Twelve Months No. of Issuances | Security | 6 | 4 |
Twelve Months or More Unrealized Losses | $ (24) | |
Twelve Months or More Estimated Fair Value | $ 3,912 | |
Twelve Months or More No. of Issuances | Security | 6 | |
Total Unrealized Losses | $ (8) | $ (29) |
Total Estimated Fair Value | $ 1,039 | $ 6,543 |
Available for sale, Total No. of Issuances | Security | 6 | 10 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (159) | |
Less than Twelve Months Estimated Fair Value | $ 7,971 | |
Less than Twelve Months No. of Issuances | Security | 4 | |
Total Unrealized Losses | $ (159) | |
Total Estimated Fair Value | $ 7,971 | |
Available for sale, Total No. of Issuances | Security | 4 | |
Collateralized Mortgage Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (10) | |
Less than Twelve Months Estimated Fair Value | $ 5,738 | |
Less than Twelve Months No. of Issuances | Security | 3 | |
Twelve Months or More Unrealized Losses | $ (15) | |
Twelve Months or More Estimated Fair Value | $ 953 | |
Twelve Months or More No. of Issuances | Security | 2 | |
Total Unrealized Losses | $ (25) | |
Total Estimated Fair Value | $ 6,691 | |
Available for sale, Total No. of Issuances | Security | 5 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Balance and Activity Related to Allowance for Loan Losses for Held for Investment Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | $ 18,816 | $ 17,577 | $ 17,577 |
Allowance of loan losses, Additions (reductions) to the allowance charged to expense | 1,945 | 550 | 2,390 |
Allowance for loan losses, Charge-offs on loans | (631) | (1,259) | |
Allowance for loan losses, Recoveries on loans | 109 | 108 | |
Allowance for loan losses, Ending balance | 20,130 | 18,236 | 18,816 |
Real Estate | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | 15,118 | 13,437 | 13,437 |
Allowance of loan losses, Additions (reductions) to the allowance charged to expense | 1,273 | 952 | 1,847 |
Allowance for loan losses, Charge-offs on loans | (166) | ||
Allowance for loan losses, Ending balance | 16,391 | 14,389 | 15,118 |
Commercial | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | 3,588 | 4,140 | 4,140 |
Allowance of loan losses, Additions (reductions) to the allowance charged to expense | 735 | (405) | 433 |
Allowance for loan losses, Charge-offs on loans | (631) | (1,093) | |
Allowance for loan losses, Recoveries on loans | 109 | 108 | |
Allowance for loan losses, Ending balance | 3,692 | 3,844 | 3,588 |
Other | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | 9 | ||
Allowance of loan losses, Additions (reductions) to the allowance charged to expense | 7 | 3 | 9 |
Allowance for loan losses, Ending balance | 16 | $ 3 | 9 |
Unallocated | |||
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | 101 | ||
Allowance of loan losses, Additions (reductions) to the allowance charged to expense | (70) | 101 | |
Allowance for loan losses, Ending balance | $ 31 | $ 101 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Summary of Recorded Investment in Loans Impairment Method and Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Reserves: | |||
Loan losses, Reserves | $ 20,130 | $ 18,816 | $ 18,236 |
Loans evaluated for impairment: | |||
Loans, Individually evaluated for impairment | 20,274 | 13,218 | 2,586 |
Loans, Collectively evaluated for impairment | 2,379,708 | 2,183,716 | 2,117,827 |
Loans acquired | 2,300,000 | ||
Total loans, net of deferred loan fees | 2,399,982 | 2,196,934 | 2,120,413 |
Specific Reserves | |||
Reserves: | |||
Loan losses, Reserves | 11 | ||
General Reserves | |||
Reserves: | |||
Loan losses, Reserves | 20,130 | 18,816 | 18,225 |
Real Estate | |||
Reserves: | |||
Loan losses, Reserves | 16,391 | 15,118 | 14,389 |
Loans evaluated for impairment: | |||
Loans, Individually evaluated for impairment | 5,376 | 3,795 | 2,365 |
Loans, Collectively evaluated for impairment | 2,039,968 | 1,842,747 | 1,765,585 |
Total loans, net of deferred loan fees | 2,045,344 | 1,846,542 | 1,767,950 |
Real Estate | General Reserves | |||
Reserves: | |||
Loan losses, Reserves | 16,391 | 15,118 | 14,389 |
Commercial | |||
Reserves: | |||
Loan losses, Reserves | 3,692 | 3,588 | 3,844 |
Loans evaluated for impairment: | |||
Loans, Individually evaluated for impairment | 14,898 | 9,423 | 221 |
Loans, Collectively evaluated for impairment | 338,270 | 340,148 | 351,906 |
Total loans, net of deferred loan fees | 353,168 | 349,571 | 352,127 |
Commercial | Specific Reserves | |||
Reserves: | |||
Loan losses, Reserves | 11 | ||
Commercial | General Reserves | |||
Reserves: | |||
Loan losses, Reserves | 3,692 | 3,588 | 3,833 |
Other | |||
Reserves: | |||
Loan losses, Reserves | 16 | 9 | |
Loans evaluated for impairment: | |||
Loans, Collectively evaluated for impairment | 1,470 | 821 | |
Total loans, net of deferred loan fees | 1,470 | 821 | |
Other | General Reserves | |||
Reserves: | |||
Loan losses, Reserves | 16 | 9 | |
Unallocated | |||
Reserves: | |||
Loan losses, Reserves | 31 | 101 | 3 |
Loans evaluated for impairment: | |||
Loans, Collectively evaluated for impairment | 336 | ||
Total loans, net of deferred loan fees | 336 | ||
Unallocated | General Reserves | |||
Reserves: | |||
Loan losses, Reserves | $ 31 | $ 101 | $ 3 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 2,399,982 | $ 2,196,934 |
Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 120,115 | 96,020 |
Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 854,580 | 793,268 |
Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,070,649 | 957,254 |
Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 275,602 | 274,586 |
Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 77,566 | 74,985 |
Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,470 | 821 |
Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,313,654 | 2,146,181 |
Pass | Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 119,681 | 95,756 |
Pass | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 804,312 | 767,603 |
Pass | Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,066,360 | 955,327 |
Pass | Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 261,934 | 265,178 |
Pass | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 59,897 | 61,496 |
Pass | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,470 | 821 |
Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 35,837 | 9,620 |
Special Mention | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 29,073 | 5,353 |
Special Mention | Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 495 | |
Special Mention | Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 6,080 | 4,078 |
Special Mention | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 189 | 189 |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 30,217 | 27,915 |
Substandard | Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 173 | |
Substandard | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 19,009 | 18,115 |
Substandard | Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 865 | 593 |
Substandard | Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,719 | 5,330 |
Substandard | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,451 | 3,877 |
Impaired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 20,274 | 13,218 |
Impaired | Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 261 | 264 |
Impaired | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,186 | 2,197 |
Impaired | Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,929 | 1,334 |
Impaired | Commercial | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,869 | |
Impaired | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 13,029 | $ 9,423 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Aging Recorded Investment Past-due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 40,198 | $ 15,830 |
Loans Not Past Due | 2,359,784 | 2,181,104 |
Total Loans | 2,399,982 | 2,196,934 |
Non-Accrual Loans | 18,005 | 11,437 |
Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 120,115 | 96,020 |
Total Loans | 120,115 | 96,020 |
Real Estate | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 12,331 | 725 |
Loans Not Past Due | 842,249 | 792,543 |
Total Loans | 854,580 | 793,268 |
Non-Accrual Loans | 725 | 725 |
Real Estate | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 7,530 | 3,464 |
Loans Not Past Due | 1,063,119 | 953,790 |
Total Loans | 1,070,649 | 957,254 |
Non-Accrual Loans | 2,930 | 1,334 |
Real Estate | Single Family Residential Mortgages Held For Sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 404 | |
Loans Not Past Due | 51,692 | 108,194 |
Total Loans | 52,096 | 108,194 |
Commercial | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 3,959 | |
Loans Not Past Due | 271,643 | 274,586 |
Total Loans | 275,602 | 274,586 |
Non-Accrual Loans | 1,363 | |
Commercial | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 16,304 | 11,641 |
Loans Not Past Due | 61,262 | 63,344 |
Total Loans | 77,566 | 74,985 |
Non-Accrual Loans | 12,987 | 9,378 |
Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 74 | |
Loans Not Past Due | 1,396 | 821 |
Total Loans | 1,470 | 821 |
30-59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 18,953 | 3,717 |
30-59 Days | Real Estate | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 11,606 | |
30-59 Days | Real Estate | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 3,048 | 1,454 |
30-59 Days | Real Estate | Single Family Residential Mortgages Held For Sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 404 | |
30-59 Days | Commercial | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,554 | |
30-59 Days | Commercial | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,671 | 2,263 |
30-59 Days | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 74 | |
60-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 4,405 | 1,560 |
60-89 Days | Real Estate | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,669 | 1,560 |
60-89 Days | Commercial | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,090 | |
60-89 Days | Commercial | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 646 | |
90 Days Or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 16,840 | 10,553 |
90 Days Or More | Real Estate | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 725 | 725 |
90 Days Or More | Real Estate | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,813 | 450 |
90 Days Or More | Commercial | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,315 | |
90 Days Or More | Commercial | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 12,987 | $ 9,378 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)Loan | Mar. 31, 2019USD ($)Loan | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($) | |
Financing Receivable Recorded Investment [Line Items] | ||||
Financing receivable, 90 days or more past due, still accruing, number of loans | Loan | 1 | |||
Financing receivable, 90 days or more past due, still accruing | $ 225,000 | |||
Interest income recognized on cash basis | $ 0 | $ 0 | $ 0 | |
Number of loans identified as troubled debt restructurings | Loan | 5 | 4 | ||
Troubled debt restructuring, aggregate balance | $ 2,300,000 | $ 1,800,000 | ||
Reserve for loans | 20,130,000 | $ 18,236,000 | 18,816,000 | |
Commitments to lend an additional amounts of outstanding loans are classified as TDR's | $ 0 | $ 0 | ||
Number of loans modified as troubled debt restructuring past twelve months with payment default | Loan | 0 | 0 | ||
Financing receivable modified as TDR's | Loan | 1 | 0 | ||
Minimum | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Moratorium on loan payments period granted | 6 months | |||
Maximum | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Moratorium on loan payments period granted | 9 months | |||
Specific Reserves | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Reserve for loans | $ 11,000 | |||
One Loan | Specific Reserves | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Reserve for loans | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Individually Impaired Loans Presented by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable Impaired [Line Items] | |||
Principal Balance | $ 20,332 | $ 13,234 | |
Recorded Investment | 20,274 | 13,218 | |
Average Balance | 22,787 | $ 2,597 | 14,797 |
Interest Income | 37 | 24 | 128 |
Construction and Land Development | |||
Financing Receivable Impaired [Line Items] | |||
Principal Balance, With no related allowance recorded | 261 | 264 | |
Recorded Investment, With no related allowance recorded | 261 | 264 | |
Average Balance, With no related allowance recorded | 262 | 275 | 271 |
Interest Income, With no related allowance recorded | 2 | 6 | 24 |
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Principal Balance, With no related allowance recorded | 1,881 | ||
Recorded Investment, With no related allowance recorded | 1,869 | ||
Average Balance, With no related allowance recorded | 1,987 | ||
Interest Income, With no related allowance recorded | 9 | ||
Commercial Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Principal Balance, With no related allowance recorded | 2,186 | 2,198 | |
Recorded Investment, With no related allowance recorded | 2,186 | 2,197 | |
Average Balance, With no related allowance recorded | 2,423 | 2,100 | 2,384 |
Interest Income, With no related allowance recorded | 25 | 17 | 100 |
Residential mortgage loans | |||
Financing Receivable Impaired [Line Items] | |||
Principal Balance, With no related allowance recorded | 2,965 | 1,349 | |
Recorded Investment, With no related allowance recorded | 2,929 | 1,334 | |
Average Balance, With no related allowance recorded | 2,962 | 1,351 | |
Commercial | SBA | |||
Financing Receivable Impaired [Line Items] | |||
Principal Balance, With no related allowance recorded | 13,039 | 9,423 | |
Recorded Investment, With no related allowance recorded | 13,029 | 9,423 | |
Average Balance, With no related allowance recorded | 15,153 | 56 | 10,791 |
Interest Income, With no related allowance recorded | $ 1 | $ 1 | $ 4 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Impaired Loans and Leases, Disaggregated by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable Impaired [Line Items] | |||
Average Balance | $ 22,787 | $ 2,597 | $ 14,797 |
Interest Income | 37 | 24 | 128 |
Construction and Land Development | |||
Financing Receivable Impaired [Line Items] | |||
Average Balance, With no related allowance recorded | 262 | 275 | 271 |
Interest Income, With no related allowance recorded | 2 | 6 | 24 |
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Average Balance, With no related allowance recorded | 1,987 | ||
Interest Income, With no related allowance recorded | 9 | ||
Commercial Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Average Balance, With no related allowance recorded | 2,423 | 2,100 | 2,384 |
Interest Income, With no related allowance recorded | 25 | 17 | 100 |
Residential mortgage loans | |||
Financing Receivable Impaired [Line Items] | |||
Average Balance, With no related allowance recorded | 2,962 | 1,351 | |
Commercial | SBA | |||
Financing Receivable Impaired [Line Items] | |||
Average Balance, With no related allowance recorded | 15,153 | 56 | 10,791 |
Interest Income, With no related allowance recorded | $ 1 | $ 1 | $ 4 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Loans by Class Modified as TDRs (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)Loan | Mar. 31, 2019Loan | |
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | Loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 506 | |
Post-Modification Recorded Investment | $ 506 | |
Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of Loans | Loan | 1 | |
Pre-Modification Recorded Investment | $ 506 | |
Post-Modification Recorded Investment | $ 506 |
Loan Servicing - Schedule of Pr
Loan Servicing - Schedule of Principal Balances of Mortgage and SBA Loans Serviced for Others (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Mortgage Loans | ||
Schedule Of Mortgage And Small Business Administration Loans Serviced [Line Items] | ||
Loans serviced for others | $ 1,673,304 | $ 1,683,298 |
SBA Loans | ||
Schedule Of Mortgage And Small Business Administration Loans Serviced [Line Items] | ||
Loans serviced for others | 156,750 | 170,849 |
Commercial Real Estate Loans | ||
Schedule Of Mortgage And Small Business Administration Loans Serviced [Line Items] | ||
Loans serviced for others | $ 4,199 | $ 4,216 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | $ 16,826 | $ 17,083 | |
Servicing fees net of servicing asset amortization | 592 | $ 840 | |
Mortgage Loans | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | 13,200 | 15,100 | |
SBA Loans | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | $ 4,100 | $ 5,600 |
Loan Servicing - Schedule of Am
Loan Servicing - Schedule of Amortization of Mortgage Servicing Rights Netted Against Loan Servicing Fee Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Mortgage Loans | ||
Servicing assets: | ||
Beginning of period | $ 12,997 | $ 12,858 |
Additions | 789 | 604 |
Disposals | (343) | (33) |
Amortized to expense | (382) | (466) |
End of period | 13,061 | 12,963 |
SBA Loans | ||
Servicing assets: | ||
Beginning of period | 4,086 | 4,512 |
Additions | 38 | 112 |
Disposals | (217) | (127) |
Amortized to expense | (142) | (172) |
End of period | $ 3,765 | $ 4,325 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule Of Finite Lived Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 69,790,000 | $ 58,563,000 | |
Impairment losses recognized on goodwill | 0 | $ 0 | |
Unamortized balance of intangible assets | 6,234,000 | $ 6,100,000 | |
Amortization of intangibles | 1,441,000 | 1,187,000 | |
Core Deposit Intangible | |||
Schedule Of Finite Lived Intangible Assets And Goodwill [Line Items] | |||
Amortization of intangibles | $ 357,000 | $ 388,000 | |
Core Deposit Intangible | Minimum | |||
Schedule Of Finite Lived Intangible Assets And Goodwill [Line Items] | |||
Intangible assets, estimated useful life | 8 years | ||
Core Deposit Intangible | Maximum | |||
Schedule Of Finite Lived Intangible Assets And Goodwill [Line Items] | |||
Intangible assets, estimated useful life | 10 years |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Future Estimated Amortization Expense (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2020 | $ 1,037 |
2021 | 1,121 |
2022 | 936 |
2023 | 800 |
2024 | 683 |
Thereafter | 1,657 |
Total | $ 6,234 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Maturities Of Time Deposits [Abstract] | |
One year | $ 1,267,249 |
Two to three years | 76,236 |
Over three years | 16,301 |
Total | $ 1,359,786 |
Deposits - Additional Informati
Deposits - Additional Information (Details) | Mar. 26, 2020 |
Maturities Of Time Deposits [Abstract] | |
Reduction of reserve requirement ratio | 0.00% |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2018 | Mar. 31, 2016 | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 105,000,000 | $ 105,000,000 | ||
6.5% Fixed to Floating Rate Subordinated Debentures, Due March 31, 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 50,000,000 | |||
Long-term debt, fixed interest rate | 6.50% | |||
Debt instrument, due date | Mar. 31, 2026 | |||
Debt instrument, fixed to floating interest rate conversion date | Mar. 31, 2021 | |||
Debt instrument, floating rate description | 3 month LIBOR plus 516 basis points | |||
Debt instrument, basis points | 5.16% | |||
Tier-1 capital | $ 35,000,000 | |||
Debt instrument, redemption period, start date | Mar. 31, 2021 | |||
6.18% Fixed to Floating Rate Subordinated Debentures, Due December 1, 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 55,000,000 | |||
Long-term debt, fixed interest rate | 6.18% | |||
Debt instrument, due date | Dec. 1, 2028 | |||
Debt instrument, fixed to floating interest rate conversion date | Dec. 1, 2023 | |||
Debt instrument, floating rate description | 3 month LIBOR plus 315 basis points | |||
Debt instrument, basis points | 3.15% | |||
Tier-1 capital | $ 25,000,000 | |||
Debt instrument, redemption period, start date | Dec. 1, 2023 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instruments [Abstract] | ||
Principal | $ 105,000,000 | $ 105,000,000 |
Unamortized debt issuance costs | $ 865,000 | $ 951,000 |
Long-term Debt - Schedule of In
Long-term Debt - Schedule of Interest and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest Expense: | ||
Interest | $ 1,662 | $ 1,662 |
Amortization | $ 86 | $ 85 |
Subordinated Debentures - Addit
Subordinated Debentures - Additional Information (Details) | Feb. 19, 2016USD ($)$ / sharesshares | Mar. 15, 2012 | Oct. 31, 2018USD ($)Securityshares | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Principal | $ 105,000,000 | $ 105,000,000 | ||||
Interest expense, paid | 1,662,000 | $ 1,662,000 | ||||
Debt aggregate amortization expense | 55,000 | 42,000 | ||||
Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense, paid | 153,000 | $ 144,000 | ||||
TFC Statutory Trust | Private Offering | ||||||
Debt Instrument [Line Items] | ||||||
Number of trust preferred securities | shares | 5,000 | |||||
Trust preferred securities liquidation amount per preferred security | $ / shares | $ 1,000 | |||||
TFC Statutory Trust | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 5,000,000 | |||||
Debt valuation reserve | $ 1,900,000 | |||||
Redemption percentage of principal amount outstanding | 100.00% | |||||
Debt instrument redemption period | Mar. 15, 2012 | |||||
Debt instrument maturity period | Mar. 15, 2037 | |||||
Defer interest payments maximum period | 5 years | |||||
Debt instrument interest rate description | the three month LIBOR plus 1.65%, which was 2.39% as of March 31, 2020 and 3.54% at December 31, 2019. | |||||
Debt instrument interest percentage | 2.39% | 3.54% | ||||
TFC Statutory Trust | Fair Value, Inputs, Level 1 | ||||||
Debt Instrument [Line Items] | ||||||
Subordinated debenture liability | $ 3,300,000 | |||||
First American International Statutory Trust I | ||||||
Debt Instrument [Line Items] | ||||||
Number of units issued | shares | 7,000 | |||||
Aggregate liquidation amount of units issued | $ 7,000,000 | |||||
Floating rate maturity period | 30 years | |||||
First American International Statutory Trust I | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 7,000,000 | |||||
Debt valuation reserve | $ 1,200,000 | |||||
Debt instrument maturity period | Dec. 15, 2034 | |||||
Defer interest payments maximum period | 5 years | |||||
Debt instrument interest rate description | the three-month LIBOR plus 2.25% through final maturity on December 15, 2034. The rate at March 31, 2020 was 2.99% and 4.14% at December 31, 2019. | |||||
Debt instrument interest percentage | 2.99% | 4.14% | ||||
PGBH | ||||||
Debt Instrument [Line Items] | ||||||
Number of units issued | shares | 5,000 | |||||
Aggregate liquidation amount of units issued | $ 5,000,000 | |||||
Number of securities issued | Security | 155 | |||||
Aggregate liquidation amount of securities issued | $ 155,000 | |||||
PGBH | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 5,200,000 | |||||
Debt valuation reserve | $ 763,000 | |||||
Debt instrument maturity period | Dec. 15, 2034 | |||||
Defer interest payments maximum period | 5 years | |||||
Debt instrument interest rate description | the three-month LIBOR plus 2.10% through final maturity on December 15, 2034. The rate at March 31, 2020 was 2.84%. | |||||
Debt instrument interest percentage | 2.84% | |||||
Other Assets | TFC Statutory Trust | ||||||
Debt Instrument [Line Items] | ||||||
Investment in common stock | $ 155,000 | |||||
Other Assets | First American International Statutory Trust I | ||||||
Debt Instrument [Line Items] | ||||||
Investment in common stock | $ 217,000 | |||||
London Interbank Offered Rate | TFC Statutory Trust | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis points | 1.65% | |||||
London Interbank Offered Rate | First American International Statutory Trust I | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis points | 2.25% | |||||
London Interbank Offered Rate | PGBH | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis points | 2.10% |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Line of credit amount outstanding | $ 0 | $ 0 |
FHLB advances | 150,000,000 | $ 0 |
FRB Secured Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 14,000,000 | |
Carrying value of collateral loan pledged | 28,600,000 | |
FHLB Secured Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 468,200,000 | |
Carrying value of collateral loan pledged | 568,700,000 | |
Zions Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 20,000,000 | |
Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 10,000,000 | |
First Tennessee National Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 12,000,000 | |
Pacific Coast Bankers' Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 5,000,000 | |
FHLB | ||
Debt Instrument [Line Items] | ||
Line of credit amount outstanding | $ 150,000,000 | |
Debt instrument, term | 5 years | |
Overnight advances interest percentage | 1.18% | |
Maturity date | 2025-03 | |
Letter of Credit | Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | $ 2,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 3,252,000 | $ 3,859,000 |
Effective tax rate | 32.50% | 27.10% |
Tax benefit from stock option exercises | $ 28,000 | $ 133,000 |
Commitments - Schedule of Futur
Commitments - Schedule of Future Minimum Rent Payments on Company's Leases (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 remaining | $ 4,241 |
2021 | 4,751 |
2022 | 4,284 |
2023 | 3,322 |
2024 | 2,224 |
Thereafter | 9,016 |
Total | $ 27,838 |
Commitments - Additional Inform
Commitments - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Total rental expense, recognized on straight-line basis | $ 1,500,000 | $ 1,500,000 |
Rental income received | $ 84,000 | $ 49,000 |
Commitments - Schedule of Finan
Commitments - Schedule of Financial Commitments whose Contractual Amount Represents Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | $ 391,438 | $ 330,199 |
Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | 387,248 | 326,126 |
Commercial and Similar Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | 227 | 358 |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount | $ 3,963 | $ 3,715 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 4,000 | $ 3,600 |
New loans and advances | 4,000 | 16,180 |
Repayments | (4,000) | (15,780) |
Ending balance | $ 4,000 | $ 4,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Executive Officers, Directors and their Related Interests | ||
Related Party Transaction [Line Items] | ||
Unfunded loan commitments outstanding to related parties | $ 0 | $ 0 |
Principal Officers, Directors and their Affiliates | ||
Related Party Transaction [Line Items] | ||
Deposits from related parties | $ 81,400,000 | $ 84,600,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 18, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 161,000 | $ 231,000 | ||
Income tax benefits recognized | 28,000 | 92,000 | ||
Total unrecognized compensation cost | $ 512,000 | |||
Unrecognized compensation costs, weighted-average recognition period | 2 years 2 months 12 days | |||
Total fair value of shares vested | $ 350,000 | $ 460,000 | ||
Number of nonvested stock options | 99,000 | 76,500 | ||
Weighted average grant date fair value, nonvested stock options | $ 5.43 | $ 6.32 | ||
Stock options exercised, shares | 56,498 | 200,629 | ||
Stock options exercised | $ 712,000 | $ 904,000 | $ 2,800,000 | |
Intrinsic value of options exercised | $ 389,000 | $ 1,200,000 | ||
2010 Stock Option Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for issuance | 3,494,478 | |||
Additional shares of common stock available for grant | 0 | |||
2010 Stock Option Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved as percentage of issued and outstanding shares | 30.00% | |||
Omnibus Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for issuance | 3,848,341 | |||
Percentage of number of shares of common stock issued and outstanding | 6.11% | |||
Available for issuance of common stock | 1,207,045 | |||
Omnibus Stock Incentive Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved as percentage of issued and outstanding shares | 30.00% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Weighted Average Assumption for Fair Value of Option Grant Estimated Using Black-Scholes Option Pricing Model (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected volatility | 28.50% | 35.00% |
Expected term | 6 years | 6 years |
Expected dividends | 1.99% | 1.90% |
Risk free rate | 1.31% | 2.66% |
Grant date fair value | $ 4.61 | $ 6.32 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Awards Pursuant to Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Beginning Balance, Shares | 1,090,968 | |
Granted, Shares | 51,000 | |
Exercised, Shares | (56,498) | (200,629) |
Forfeited/cancelled, Shares | (4,000) | |
Ending Balance, Shares | 1,081,470 | 1,090,968 |
Options exercisable, Shares | 982,470 | |
Beginning Balance, Weighted Average Exercise Price | $ 13.11 | |
Granted, Weighted Average Exercise Price | 20.10 | |
Exercised, Weighted Average Exercise Price | 12.61 | |
Forfeited/cancelled, Weighted Average Exercise Price | 18.38 | |
Ending Balance, Weighted Average Exercise Price | 13.45 | $ 13.11 |
Options exercisable, Weighted Average Exercise Price | $ 12.87 | |
Ending Balance, Weighted Average Remaining Contractual Term | 4 years 1 month 6 days | |
Options exercisable, Weighted Average Remaining Contractual Term | 3 years 6 months 25 days | |
Ending Balance, Aggregate Intrinsic Value | $ 1,826 | |
Options exercisable, Aggregate Intrinsic Value | $ 1,826 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) - USD ($) | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 02, 2017 | Jan. 02, 2016 | Jan. 01, 2015 | Mar. 31, 2020 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||||
Common equity Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 4.50% | |||||
Common equity Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 6.50% | |||||
Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 4.00% | |||||
Increased Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 6.00% | |||||
Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 6.00% | |||||
Increased Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 8.00% | |||||
Capital conservation buffer | 2.50% | 2.50% | 2.50% | 0.625% | 2.50% | |
Capital conservation buffer phased-in on pro rata basis period | 4 years | |||||
Minimum | ||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||||
Regulatory assets | $ 3,000,000,000 | |||||
Required assets to liabilities ratio after dividend effect | 125.00% |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Company and Bank Continue to Exceed Regulatory Capital Minimum Requirements and Bank Continues to Exceed Well Capitalized Standards (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | ||
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 6.00% | ||
RBB Bancorp | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Leverage Ratio, Amount | $ 347,133 | $ 353,572 | |
Tier 1 Leverage Ratio, Ratio | 11.74% | 12.89% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Amount | $ 333,013 | $ 343,899 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Ratio | 15.45% | 17.16% | |
Tier 1 Risk-Based Capital Ratio, Amount | $ 347,133 | $ 353,572 | |
Tier 1 Risk-Based Capital Ratio, Ratio | 16.10% | 17.65% | |
Total Risk-Based Capital Ratio, Amount | $ 472,376 | $ 477,262 | |
Total Risk-Based Capital Ratio, Ratio | 21.91% | 23.82% | |
Royal Business Bank | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Leverage Ratio, Amount | $ 426,236 | $ 417,036 | |
Tier 1 Leverage Ratio, Ratio | 14.44% | 15.23% | |
Tier 1 Leverage Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 118,042 | $ 108,150 | |
Tier 1 Leverage Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% | |
Tier 1 Leverage Ratio, Minimum Required Plus Capital Conservation Buffer Fully Phased-In Amount | $ 118,042 | $ 108,150 | |
Tier 1 Leverage Ratio, Minimum Required Plus Capital Conservation Buffer Fully Phased-In Ratio | 4.00% | 4.00% | |
Tier 1 Leverage Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 147,552 | $ 135,187 | |
Tier 1 Leverage Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 5.00% | 5.00% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Amount | $ 426,236 | $ 417,036 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Ratio | 19.79% | 20.87% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 96,911 | $ 89,127 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 4.50% | 4.50% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required Plus Capital Conversation Buffer Fully Phased-In, Amount | $ 150,750 | $ 138,642 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required Plus Capital Conversation Buffer Fully Phased-In, Ratio | 7.00% | 7.00% | |
Common Equity Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 139,982 | $ 128,739 | |
Common Equity Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 6.50% | 6.50% | |
Tier 1 Risk-Based Capital Ratio, Amount | $ 426,236 | $ 417,036 | |
Tier 1 Risk-Based Capital Ratio, Ratio | 19.79% | 20.87% | |
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 129,214 | $ 118,836 | |
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 6.00% | 6.00% | |
Tier 1 Risk-Based Capital Ratio, Minimum Required Plus Capital Conversation Buffer Fully Phased-In, Amount | $ 183,054 | $ 168,351 | |
Tier 1 Risk-Based Capital Ratio, Minimum Required Plus Capital Conversation Buffer Fully Phased-In, Ratio | 8.50% | 8.50% | |
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 172,286 | $ 158,448 | |
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital Ratio, Amount | $ 447,344 | $ 436,677 | |
Total Risk-Based Capital Ratio, Ratio | 20.77% | 21.86% | |
Total Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Amount | $ 172,286 | $ 158,448 | |
Total Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital Ratio, Minimum Required Plus Capital Conversation Buffer Fully Phased-In, Amount | $ 226,125 | $ 207,964 | |
Total Risk-Based Capital Ratio, Minimum Required Plus Capital Conversation Buffer Fully Phased-In, Ratio | 10.50% | 10.50% | |
Total Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Amount | $ 215,357 | $ 198,061 | |
Total Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions Ratio | 10.00% | 10.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Hierarchy and Fair Value for Each Major Category of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurements, Recurring Basis | ||
Assets measured at fair value: | ||
Assets measured at fair value | $ 126,294 | $ 126,069 |
Fair Value Measurements, Recurring Basis | Government Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 1,426 | 1,572 |
Fair Value Measurements, Recurring Basis | SBA Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 4,647 | 4,691 |
Fair Value Measurements, Recurring Basis | Mortgage-Backed Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 18,772 | 19,171 |
Fair Value Measurements, Recurring Basis | Collateralized Mortgage Obligations | ||
Assets measured at fair value: | ||
Assets measured at fair value | 11,219 | 11,654 |
Fair Value Measurements, Recurring Basis | Corporate Debt Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 90,230 | 19,083 |
Fair Value Measurements, Recurring Basis | Commercial Paper | ||
Assets measured at fair value: | ||
Assets measured at fair value | 69,898 | |
Fair Value Measurements, Nonrecurring Basis | ||
Assets measured at fair value: | ||
Assets measured at fair value | 3,901 | |
Fair Value Measurements, Nonrecurring Basis | Commercial Real Estate | Collateral Dependent Impaired Loans | ||
Assets measured at fair value: | ||
Assets measured at fair value | 3,608 | |
Fair Value Measurements, Nonrecurring Basis | Other Real Estate Owned | ||
Assets measured at fair value: | ||
Assets measured at fair value | 293 | 293 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | ||
Assets measured at fair value: | ||
Assets measured at fair value | 126,294 | 126,069 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Government Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 1,426 | 1,572 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | SBA Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 4,647 | 4,691 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Mortgage-Backed Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 18,772 | 19,171 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Collateralized Mortgage Obligations | ||
Assets measured at fair value: | ||
Assets measured at fair value | 11,219 | 11,654 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Corporate Debt Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 90,230 | 19,083 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Commercial Paper | ||
Assets measured at fair value: | ||
Assets measured at fair value | 69,898 | |
Fair Value Measurements Using Level 3 | Fair Value Measurements, Nonrecurring Basis | ||
Assets measured at fair value: | ||
Assets measured at fair value | 3,901 | |
Fair Value Measurements Using Level 3 | Fair Value Measurements, Nonrecurring Basis | Commercial Real Estate | Collateral Dependent Impaired Loans | ||
Assets measured at fair value: | ||
Assets measured at fair value | 3,608 | |
Fair Value Measurements Using Level 3 | Fair Value Measurements, Nonrecurring Basis | Other Real Estate Owned | ||
Assets measured at fair value: | ||
Assets measured at fair value | $ 293 | $ 293 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)Property | Dec. 31, 2019USD ($) | |
Fair Value Option Quantitative Disclosures [Line Items] | ||
Write-downs to OREO | $ 0 | $ 0 |
Other Real Estate Owned | Single-Family Residences | ||
Fair Value Option Quantitative Disclosures [Line Items] | ||
Number of other real estate owned | Property | 1 | |
Assets measured at fair value | $ 293,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Quantitative Information About Impaired Loans and OREO Non-recurring Level 3 Fair Value Measurements (Details) - Fair Value Measurements, Nonrecurring Basis $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 3,901 | |
Collateral Dependent Impaired Loans | Commercial Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 3,608 | |
Collateral Dependent Impaired Loans | Third Party Appraisals | Measurement Input, Comparability Adjustment | Commercial Real Estate | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjustment | 6 | |
Fair Value Measurements Using Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 3,901 | |
Fair Value Measurements Using Level 3 | Collateral Dependent Impaired Loans | Commercial Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 3,608 | |
Fair Value Measurements Using Level 3 | Collateral Dependent Impaired Loans | Third Party Appraisals | Commercial Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 3,608 | |
Fair Value Measurements Using Level 3 | Collateral Dependent Impaired Loans | Third Party Appraisals | Measurement Input, Comparability Adjustment | Commercial Real Estate | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjustment | 5 | |
Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 293 | $ 293 |
Other Real Estate Owned | Third Party Appraisals | Measurement Input, Comparability Adjustment | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjustment | 6 | 6 |
Other Real Estate Owned | Fair Value Measurements Using Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 293 | $ 293 |
Other Real Estate Owned | Fair Value Measurements Using Level 3 | Third Party Appraisals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 293 | $ 293 |
Other Real Estate Owned | Fair Value Measurements Using Level 3 | Third Party Appraisals | Measurement Input, Comparability Adjustment | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjustment | 5 | 5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value Hierarchy Level and Estimated Fair Value of Significant Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Investment securities - AFS | $ 126,294 | $ 126,069 |
Investment securities - HTM | 8,154 | 8,632 |
Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | 285,667 | 114,763 |
Federal funds sold and other cash equivalents | 75,300 | 67,000 |
Interest-earning deposits in other financial institutions | 600 | 600 |
Investment securities - AFS | 126,294 | 126,069 |
Investment securities - HTM | 7,825 | 8,332 |
Mortgage loans held for sale | 52,096 | 108,194 |
Loans, net | 2,379,852 | 2,178,118 |
Equity security | 11,817 | 11,826 |
Mortgage serving rights | 16,826 | 17,083 |
Financial Liabilities: | ||
Deposits | 2,435,981 | 2,248,938 |
FHLB advances | 150,000 | |
Long-term debt | 104,135 | 104,049 |
Subordinated debenture liability | 14,120 | 9,673 |
Fair Value | Fair Value, Inputs, Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 285,667 | 114,763 |
Federal funds sold and other cash equivalents | 75,300 | 67,000 |
Interest-earning deposits in other financial institutions | 600 | 600 |
Mortgage loans held for sale | 52,664 | 109,385 |
Fair Value | Fair Value Measurements Using Level 2 | ||
Financial Assets: | ||
Investment securities - AFS | 126,294 | 126,069 |
Investment securities - HTM | 8,154 | 8,632 |
Mortgage serving rights | 17,251 | 20,752 |
Financial Liabilities: | ||
Deposits | 2,427,037 | 2,236,329 |
FHLB advances | 150,000 | |
Long-term debt | 131,284 | 109,877 |
Fair Value | Fair Value Measurements Using Level 3 | ||
Financial Assets: | ||
Loans, net | 2,325,638 | 2,158,970 |
Equity security | 11,817 | 11,826 |
Financial Liabilities: | ||
Subordinated debenture liability | $ 20,902 | $ 11,709 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income as reported | $ 6,748 | $ 10,380 |
Less: Earnings allocated to participating securities | $ (10) | $ (22) |
Shares outstanding | 19,739,280 | 20,073,991 |
Impact of weighting shares | 232,576 | (69,700) |
Used in basic EPS, Income | $ 6,738 | $ 10,358 |
Used in basic EPS, Shares | 19,971,856 | 20,004,291 |
Dilutive effect of outstanding | ||
Stock options, Shares | 294,472 | 389,025 |
Used in dilutive EPS, Income | $ 6,738 | $ 10,358 |
Used in dilutive EPS, Shares | 20,266,328 | 20,393,316 |
Basic earnings per common share | $ 0.34 | $ 0.52 |
Diluted earnings per common share | $ 0.33 | $ 0.51 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock options | Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Excluded common stock for computation of diluted earnings per share | 263,500 | 76,500 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Additional Information (Details) | Jan. 01, 2019USD ($) |
ASU 2014-09 | |
Disaggregation Of Revenue [Line Items] | |
Cumulative effect adjustment to retained earnings | $ 0 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Summary of Revenue From Contracts With Customers in-Scope and Not in-Scope under Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total in-scope non-interest income | $ 1,052 | $ 787 |
Non-interest income, not in scope | 3,563 | 3,415 |
Total noninterest income | 4,615 | 4,202 |
Fees and Service Charges on Deposit Accounts | ||
Disaggregation Of Revenue [Line Items] | ||
Total in-scope non-interest income | 451 | 298 |
Other Fees | ||
Disaggregation Of Revenue [Line Items] | ||
Total in-scope non-interest income | 149 | 198 |
Other Income | ||
Disaggregation Of Revenue [Line Items] | ||
Total in-scope non-interest income | $ 452 | $ 291 |
Qualified Affordable Housing _2
Qualified Affordable Housing Project Investments - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investment for qualified affordable housing projects | $ 8,400,000 | $ 8,600,000 | |
Unfunded commitments related to the investments in qualified affordable housing projects | 2,200,000 | $ 4,200,000 | |
Amortization expense | $ 247,000 | $ 225,000 | |
Minimum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Expected year in which commitments are fulfilled | 2020 | ||
Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Expected year in which commitments are fulfilled | 2027 |
Recent Developments - Additiona
Recent Developments - Additional Information (Details) - Subsequent Event | Apr. 20, 2020$ / shares |
Recent Developments [Line Items] | |
Cash dividend announced date | Apr. 20, 2020 |
Cash dividends announced per share | $ 0.06 |
Cash dividend payable date | May 13, 2020 |
Cash dividend announced, record date | Apr. 30, 2020 |