Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | OPBK | |
Entity Registrant Name | OP BANCORP | |
Entity Central Index Key | 0001722010 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 15,044,540 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38437 | |
Entity Tax Identification Number | 81-3114676 | |
Entity Address, Address Line One | 1000 Wilshire Blvd. | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90017 | |
City Area Code | 213 | |
Local Phone Number | 892-9999 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | CA | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 127,524 | $ 106,405 |
Securities available for sale, at fair value | 102,413 | 91,791 |
Other investments | 9,953 | 10,006 |
Loans held for sale | 28,575 | 26,659 |
Loans receivable, net of allowance of $15,339 at March 31, 2021 and $15,352 at December 31, 2020 | 1,140,533 | 1,084,384 |
Premises and equipment, net | 4,368 | 4,544 |
Accrued interest receivable, net of allowance of $1,279 at March 31, 2021 and $643 at December 31, 2020 | 3,096 | 3,985 |
Servicing assets | 7,492 | 7,360 |
Company owned life insurance (COLI) | 10,941 | 10,879 |
Deferred tax assets | 5,391 | 5,242 |
Operating right-of-use assets | 6,443 | 6,786 |
Other assets | 8,605 | 8,785 |
Total assets | 1,455,334 | 1,366,826 |
Deposits: | ||
Noninterest bearing | 571,985 | 522,754 |
Interest bearing: | ||
Money market and others | 354,148 | 328,323 |
Time deposits greater than $250,000 | 190,960 | 200,210 |
Other time deposits | 168,297 | 148,803 |
Total deposits | 1,285,390 | 1,200,090 |
Federal Home Loan Bank advances | 5,000 | 5,000 |
Accrued interest payable | 622 | 1,021 |
Operating lease liabilities | 8,016 | 8,429 |
Other liabilities | 9,313 | 8,920 |
Total liabilities | 1,308,341 | 1,223,460 |
Shareholders’ equity | ||
Preferred stock – no par value; 10,000,000 shares authorized; no shares issued or outstanding at March 31, 2021 and December 31, 2020 | ||
Common stock – no par value; 50,000,000 shares authorized; 15,037,635 and 15,016,700 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 78,654 | 78,657 |
Additional paid-in capital | 8,652 | 8,521 |
Retained earnings | 59,373 | 55,348 |
Accumulated other comprehensive income | 314 | 840 |
Total shareholders’ equity | 146,993 | 143,366 |
Total liabilities and shareholders' equity | $ 1,455,334 | $ 1,366,826 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Loans receivable, allowance | $ 15,339 | $ 15,352 |
Accrued interest receivable, allowance | 1,279 | 643 |
Cash, FDIC insured amount | $ 250,000 | $ 250,000 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares, issued | 15,037,635 | 15,016,700 |
Common stock, shares, outstanding | 15,037,635 | 15,016,700 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest income | ||
Interest and fees on loans | $ 13,284,000 | $ 13,694,000 |
Interest on investment securities | 236,000 | 319,000 |
Other interest income | 112,000 | 332,000 |
Total interest income | 13,632,000 | 14,345,000 |
Interest expense | ||
Interest on deposits | 877,000 | 3,229,000 |
Total interest expense | 877,000 | 3,229,000 |
Net interest income | 12,755,000 | 11,116,000 |
Provision for loan losses | 620,000 | 743,000 |
Net interest income after provision for loan losses | 12,135,000 | 10,373,000 |
Noninterest income | ||
Service charges on deposits | 274,000 | 368,000 |
Loan servicing fees, net of amortization | 531,000 | 392,000 |
Gain on sale of loans | 1,882,000 | 1,155,000 |
Other income | 279,000 | 381,000 |
Total noninterest income | 2,966,000 | 2,296,000 |
Noninterest expense | ||
Salaries and employee benefits | 4,662,000 | 5,071,000 |
Occupancy and equipment | 1,235,000 | 1,230,000 |
Data processing and communication | 448,000 | 409,000 |
Professional fees | 314,000 | 273,000 |
FDIC insurance and regulatory assessments | 132,000 | 106,000 |
Promotion and advertising | 177,000 | 162,000 |
Directors’ fees | 116,000 | 233,000 |
Foundation donation and other contributions | 507,000 | 330,000 |
Other expenses | 375,000 | 393,000 |
Total noninterest expense | 7,966,000 | 8,207,000 |
Income before income taxes | 7,135,000 | 4,462,000 |
Income tax expense | 2,058,000 | 1,163,000 |
Net income | $ 5,077,000 | $ 3,299,000 |
Earnings per share - Basic | $ 0.33 | $ 0.21 |
Earnings per share - Diluted | $ 0.33 | $ 0.21 |
Other comprehensive (loss)/income: | ||
Change in unrealized (loss)/income on securities available for sale | $ (747,000) | $ 1,294,000 |
Tax effect | 221,000 | (382,000) |
Total other comprehensive (loss)/income | (526,000) | 912,000 |
Comprehensive income | $ 4,551,000 | $ 4,211,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2019 | $ 140,576 | $ 86,381 | $ 7,524 | $ 46,483 | $ 188 |
Beginning balance, shares at Dec. 31, 2019 | 15,703,276 | ||||
Net income | 3,299 | 3,299 | |||
Stock issued under stock-based compensation plans | 305 | $ 305 | |||
Stock issued under stock-based compensation plans, shares | 130,046 | ||||
Stock-based compensation | 358 | 358 | |||
Repurchase of common stock | (6,264) | $ (6,264) | |||
Repurchase of common stock, shares | (717,454) | ||||
Cash dividends declared | (1,087) | (1,087) | |||
Change in other comprehensive income(loss) | 912 | 912 | |||
Ending balance at Mar. 31, 2020 | 138,099 | $ 80,422 | 7,882 | 48,695 | 1,100 |
Ending balance, shares at Mar. 31, 2020 | 15,115,868 | ||||
Beginning balance at Dec. 31, 2020 | 143,366 | $ 78,657 | 8,521 | 55,348 | 840 |
Beginning balance, shares at Dec. 31, 2020 | 15,016,700 | ||||
Net income | 5,077 | 5,077 | |||
Stock issued under stock-based compensation plans | 25 | $ 25 | |||
Stock issued under stock-based compensation plans, shares | 24,765 | ||||
Stock-based compensation | 131 | 131 | |||
Repurchase of common stock | (28) | $ (28) | |||
Repurchase of common stock, shares | (3,830) | ||||
Cash dividends declared | (1,052) | (1,052) | |||
Change in other comprehensive income(loss) | (526) | (526) | |||
Ending balance at Mar. 31, 2021 | $ 146,993 | $ 78,654 | $ 8,652 | $ 59,373 | $ 314 |
Ending balance, shares at Mar. 31, 2021 | 15,037,635 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income | $ 5,077 | $ 3,299 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Provision for loan losses | 620 | 743 |
Depreciation and amortization of premises and equipment | 328 | 329 |
Amortization of net premiums on securities | 232 | 58 |
Stock-based compensation | 131 | 358 |
Gain on sales of loans | (1,882) | (1,155) |
Earnings on company owned life insurance (COLI) | (62) | (65) |
Origination of loans held for sale | (25,413) | (20,566) |
Proceeds from sales of loans held for sale | 24,716 | 19,012 |
Amortization of servicing assets | 438 | 467 |
Amortization of low income housing partnerships | 127 | 54 |
Net change in fair value of equity investment with readily determinable fair value | 66 | (58) |
Net change in: | ||
Accrued interest receivable | 253 | 110 |
Deferred tax assets | 72 | 98 |
Other assets | 41 | 968 |
Accrued interest payable | (399) | (94) |
Other liabilities | 510 | (1,192) |
Net cash from operating activities | 4,855 | 2,366 |
Cash flows from investing activities | ||
Net change in loans receivable | (56,039) | (6,445) |
Proceeds from matured, called, or paid-down securities available for sale | 8,325 | 5,605 |
Purchase of securities available for sale | (19,926) | |
Purchase of premises and equipment, net | (152) | (245) |
Investment in low income housing partnerships | (189) | (759) |
Net cash from investing activities | (67,981) | (1,844) |
Cash flows from financing activities | ||
Net change in deposits | 85,300 | 31,487 |
Cash received from stock option exercises | 25 | 305 |
Repurchase of common stock | (28) | (6,264) |
Cash dividend paid on common stock | (1,052) | (1,087) |
Net cash from financing activities | 84,245 | 24,441 |
Net change in cash and cash equivalents | 21,119 | 24,963 |
Cash and cash equivalents at beginning of period | 106,405 | 86,036 |
Cash and cash equivalents at end of period | 127,524 | 110,999 |
Supplemental cash flow information | ||
Income taxes | 2,868 | 1,335 |
Interest | $ 3,628 | 3,323 |
Supplemental noncash disclosure: | ||
New commitments to low income housing partnership investments | $ 3,477 |
Business Description
Business Description | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Description | Note 1. Business Description OP Bancorp (the “Company”) is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Company was formed to acquire 100% of the voting equity of Open Bank (the “Bank”) and commenced operation as a bank holding company on June 1, 2016. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. The Company has no operations other than ownership of the Bank. The Bank is a California state-chartered and FDIC-insured financial institution, which began its operations on June 10, 2005. Headquartered in downtown Los Angeles, California, the Company operates primarily in the traditional banking business arena that includes accepting deposits and making loans and investments. The Company’s primary deposit products are demand and time deposits, and the primary lending products are commercial business loans to small to medium sized businesses. The Company is operating with nine full service branches, eight of which are located in California, in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park and Santa Clara, and one full service branch is located in Carrollton, Texas. The Company also has four loan production offices in Atlanta, Georgia, Aurora, Colorado, and Lynwood and Seattle, Washington . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation: The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of the financial results for the interim periods presented, including eliminating intercompany transactions and balances. The results of operations for the interim periods are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The Company could experience a material adverse effect on its business as a result of the impact of the novel coronavirus pandemic (“COVID-19”) and the resulting governmental actions to curtail its spread. It is at least reasonably possible that the estimates based on information which was available at the date of the financial statements will change in the near term due to the COVID-19 pandemic and that the effect of the change would be material to the financial statements, including the allowance for loan losses. The extent to which the COVID-19 pandemic will impact our estimates and assumptions is highly uncertain and we are unable to make an estimate, at this time. Concentration of Risk: Most of the Company’s customers are located within Los Angeles County and the surrounding area. The concentration of loans originated in this area may subject the Company to the risk of adverse impacts associated with economic, regulatory or other developments that could occur in Southern California. The Company has significant concentration in commercial real estate loans. The Company obtains what it believes to be sufficient collateral to secure potential losses. The extent and value of the collateral obtained varies based upon the details underlying each loan agreement. There have been no significant or material changes to the Company’s accounting policies during the three months ended March 31, 2021, as compared to the Summary of Significant Accounting Policies as described in “Note 1 of the Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020. Recent Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The objective of ASU 2016-13 is to provide financial statement users with decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 includes provisions that require financial assets measured at amortized cost (such as loans and held to maturity (HTM) debt securities) to be presented at the net amount expected to be collected. This will be accomplished through recognition of an estimate of all current expected credit losses. The estimate will include forecasted information for the timeframe that an entity is able to develop reasonable and supportable forecasts. This is a change from the current practice of recognizing incurred losses based on the probable initial recognition threshold under current GAAP. In addition, credit losses on available for sale (AFS) debt securities will be recorded through an allowance for credit losses rather than as a write-down. Under ASU 2016-13, an entity will be able to record reversals of credit losses in current period income when the estimate of credit losses declines, whereas current GAAP prohibits reflecting those improvements in current period earnings. In July 2019, FASB proposed the effective date delay to January 2020 for SEC filers, excluding smaller reporting companies (“SRCs”) and emerging growth companies (“EGCs”), and January 2023 for all other entities including SRCs and EGCs, and on October 2019, FASB voted to approve the proposed delay. The Company expects the adoption date of ASU 2016-13 will be January 2023. ASU 2016-13 will be applied through a cumulative effect adjustment to retained earnings (modified-retrospective approach), except for debt securities for which an other-than-temporary impairment had been recognized before the effective date. A prospective transition approach is required for these debt securities. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures, including software solutions, data requirements and loss estimation methodologies. The company has engaged a third party advisor to develop a new expected loss model. While the effects cannot yet be quantified, the Company expects ASU 2016-13 to add complexity and costs to its current credit loss evaluation process. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in transition to use SOFR to replace LIBOR and does not expect the transition willl be material to its consolidated statement of income. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This amendment simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amedments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The effective date will be January 2023. T he Company does not expect the adoption of this guidance will be material to its consolidated statement of income. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 3. Securities The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of securities available for sale as of March 31, 2021 and December 31, 2020: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value As of March 31, 2021: (Dollars in thousands) Available for sale: U.S. Government sponsored agency securities $ 1,000 $ 1 $ — $ 1,001 Mortgage-backed securities: residential 25,196 352 (120 ) 25,428 Collateralized mortgage obligations: residential 75,772 679 (467 ) 75,984 Total available for sale $ 101,968 $ 1,032 $ (587 ) $ 102,413 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value As of December 31, 2020: (Dollars in thousands) Available for sale: U.S. Government sponsored agency securities $ 1,000 $ 5 $ — $ 1,005 Mortgage-backed securities: residential 19,281 430 (7 ) 19,704 Collateralized mortgage obligations: residential 70,318 814 (50 ) 71,082 Total available for sale $ 90,599 $ 1,249 $ (57 ) $ 91,791 There were no sales of securities available for sale in the three months ended March 31, 2021 or 2020. The amortized cost and estimated fair value of securities available for sale at March 31, 2021, by contractual maturity, are shown below. Securities without a contractual maturity are shown separately. Amortized Cost Fair Value As of March 31, 2021: (Dollars in thousands) Available for sale: Within one year $ 1,000 $ 1,001 One to five years 938 978 Mortgage-backed securities: residential 24,258 24,450 Collateralized mortgage obligations: residential 75,772 75,984 Total available for sale $ 101,968 $ 102,413 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The following table summarizes securities with unrealized losses as of March 31, 2021 and December 31, 2020, respectively, aggregated by length of time held in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of March 31, 2021: (Dollars in thousands) Available for sale: Mortgage-backed securities: residential $ 12,426 $ (120 ) $ — $ — $ 12,426 $ (120 ) Collateralized mortgage obligations: residential 34,616 (467 ) — — 34,616 (467 ) Total available for sale $ 47,042 $ (587 ) $ — $ — $ 47,042 $ (587 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of December 31, 2020: (Dollars in thousands) Available for sale: Mortgage-backed securities: residential $ 3,089 $ (7 ) $ — $ — $ 3,089 $ (7 ) Collateralized mortgage obligations: residential 13,593 (50 ) — — 13,593 (50 ) Total available for sale $ 16,682 $ (57 ) $ - $ - $ 16,682 $ (57 ) Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, along with the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or whether it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components, as follows: (i) OTTI related to credit loss, which must be recognized in the income statement, and (ii) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. As of March 31, 2021 , management believes no securities with unrealized losses were OTTI. There were no securities pledged as collateral as of March 31, 2021 or December 31, 2020. Other investments as of March 31, 2021 and December 31, 2020, consisted of the following: March 31, 2021 December 31, 2020 (Dollars in thousands) Federal Home Loan Bank (FHLB) stock $ 6,043 $ 6,043 Pacific Coast Bankers Bank (PCBB) stock 190 190 Mutual fund - CRA qualified 3,720 3,773 Total other investments $ 9,953 $ 10,006 As of March 31, 2021 and December 31, 2020, the Company has $3.7 million and $3.8 million, respectively, of a mutual fund that the Company invested to satisfy the CRA requirements, which is reported at fair value. Unrealized holding losses on this investment were $79,000 for the three months ended March 31, 2021 and unrealized holding gains on this investment were $58,000 for the three months ended March 31, 2020. These gains and losses are included in Other Income in the Statements of Income. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans | Note 4. Loans The composition of the loan portfolio was as follows at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 (Dollars in thousands) Real estate: Commercial real estate $ 662,445 $ 651,684 SBA loans—real estate 139,503 136,224 Total real estate 801,948 787,908 SBA loans—non-real estate 123,682 (1) 75,151 Commercial and industrial 103,883 107,307 Home mortgage 125,285 128,212 Consumer 1,074 1,158 Gross loans receivable 1,155,872 1,099,736 Allowance for loan losses (15,339 ) (15,352 ) Loans receivable, net $ 1,140,533 $ 1,084,384 (1) At March 31, 2021 and December 31, 2020, SBA loans - non-real estate balances include SBA PPP loans of $113.6 million and $64.9 million, respectively. No loans were outstanding to related parties as of March 31, 2021 or December 31, 2020. The activity in the allowance for loan losses for the three months ended March 31, 2021 and 2020 was as follows: SBA Commercial SBA Loans Loans Non- Commercial Home Real Estate Real Estate Real Estate and Industrial Mortgage Consumer Total (Dollars in thousands) Three months ended March 31, 2021: Beginning balance $ 8,505 $ 1,802 $ 278 $ 2,563 $ 2,185 $ 19 $ 15,352 Provision for loan losses (1) 89 228 14 (232 ) (110 ) (5 ) (16 ) Charge-offs — — — — — — — Recoveries — — — — — 3 3 Ending balance $ 8,594 $ 2,030 $ 292 $ 2,331 $ 2,075 $ 17 $ 15,339 Three months ended March 31, 2020: Beginning balance $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 Provision for loan losses 210 143 116 3 254 17 743 Charge-offs — — (45 ) — — — (45 ) Recoveries — — — — — — — Ending balance $ 6,210 $ 1,082 $ 192 $ 1,292 $ 1,921 $ 51 $ 10,748 (1) Loan loss provision for the three months ended March 31, 2021, reported on income statement is $620,000. The difference of $636,000 is allocated to allowance on accrued interest receivable on loan deferrals and loans that are no longer on deferral but have not fully caught up on their accrued interest. The following table presents the balance in the allowance for loan losses and the recorded investment in loans (including accrued interest receivable of $4.1 million and $4.4 million as of March 31, 2021 and December 31, 2020, respectively) by portfolio segment as of March 31, 2021 and December 31, 2020: Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total As of March 31, 2021: (Dollars in thousands) Allowance for loan losses: Commercial real estate $ — $ 8,594 $ 8,594 SBA loans—real estate — 2,030 2,030 SBA loans—non-real estate 125 167 292 Commercial and industrial 326 2,005 2,331 Home mortgage — 2,075 2,075 Consumer — 17 17 Total $ 451 $ 14,888 $ 15,339 Loans: Commercial real estate $ — $ 664,672 $ 664,672 SBA loans—real estate — 140,160 140,160 SBA loans—non-real estate 335 123,876 124,211 Commercial and industrial 327 103,785 104,112 Home mortgage — 125,759 125,759 Consumer — 1,076 1,076 Total $ 662 $ 1,159,328 $ 1,159,990 As of December 31, 2020: Allowance for loan losses: Commercial real estate $ — $ 8,505 $ 8,505 SBA loans—real estate — 1,802 1,802 SBA loans—non-real estate 87 191 278 Commercial and industrial 330 2,233 2,563 Home mortgage — 2,185 2,185 Consumer — 19 19 Total $ 417 $ 14,935 $ 15,352 Loans: Commercial real estate $ — $ 654,235 $ 654,235 SBA loans—real estate — 136,873 136,873 SBA loans—non-real estate 174 75,477 75,651 Commercial and industrial 330 107,175 107,505 Home mortgage — 128,683 128,683 Consumer — 1,161 1,161 Total $ 504 $ 1,103,604 $ 1,104,108 The following table presents the recorded investment of individually impaired loans and the specific allowance for loan losses as of March 31, 2021 and December 31, 2020. The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans is not considered to be material. As of March 31, 2021 As of December 31, 2020 Recorded Allowance Recorded Allowance Investment Allocated Investment Allocated (Dollars in thousands) With an allowance recorded: SBA loans—non-real estate $ 335 $ 124 $ 174 $ 87 Commercial and industrial 327 327 330 330 Total $ 662 $ 451 $ 504 $ 417 The following table presents information related to impaired loans by class of loans for the three months ended March 31, 2021 and 2020. The difference between interest income recognized and cash basis interest recognized was immaterial. Average Interest Recorded Income Investment Recognized For the three months ended March 31, 2021: (Dollars in thousands) With an allowance recorded: SBA loans—non-real estate $ 255 $ 4 Commercial and industrial 330 3 Total $ 585 $ 7 For the three months ended March 31, 2020: With no related allowance recorded: SBA loans—real estate $ 480 $ — SBA loans—non-real estate 33 — With an allowance recorded: SBA loans—non-real estate 126 9 Commercial and industrial 331 4 Total $ 970 $ 13 The following table presents the recorded investment in nonaccrual loans and loans past due greater than 90 days still accruing interest, by class of loans, as of March 31, 2021 and December 31, 2020: Nonaccrual Loans >90 Days Past Due & Still Accruing Total (Dollars in thousands) As of March 31, 2021: SBA loans—non-real estate $ 221 $ — $ 221 Commercial and industrial 327 — 327 Home mortgage 600 — 600 Total $ 1,148 $ — $ 1,148 As of December 31, 2020: SBA loans—non-real estate $ 56 $ — $ 56 Commercial and industrial 330 — 330 Home mortgage 599 — 599 Total $ 985 $ — $ 985 Nonaccrual loans and loans past due greater than 90 days still accruing interest include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table represents the aging of the recorded investment in past due loans as of March 31, 2021 and December 31, 2020: 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Loans Not Past Due Total As of March 31, 2021: (Dollars in thousands) Commercial real estate $ — $ — $ — $ — $ 664,672 $ 664,672 SBA—real estate — — — — 140,160 140,160 SBA—non-real estate — — 221 221 123,990 124,211 Commercial and industrial — — — — 104,112 104,112 Home mortgage — — 600 600 125,159 125,759 Consumer — — — — 1,076 1,076 $ — $ — $ 821 $ 821 $ 1,159,169 $ 1,159,990 As of December 31, 2020: Commercial real estate $ — $ — $ — $ — $ 654,235 $ 654,235 SBA—real estate — — — — 136,873 136,873 SBA—non-real estate — — — — 75,651 75,651 Commercial and industrial — — — — 107,505 107,505 Home mortgage — — 599 599 128,084 128,683 Consumer — — — — 1,161 1,161 $ — $ — $ 599 $ 599 $ 1,103,509 $ 1,104,108 Troubled Debt Restructurings Modifications made were primarily extensions of existing payment modifications on loans previously identified as TDRs. There were no new loans identified as TDRs during the three months ended March 31, 2021 or 2020. There were no payment defaults during the three months ended March 31, 2021, and March 31, 2020, of loans that had been modified as TDRs within the previous twelve months. Loan payment deferrals interagency guidance and Section 4013 of As of March 31, 2021, 171 loans with an aggregate balance of $217.8 million, including 64 home mortgage loans with an aggregate balance of $27.4 million, have resumed regular payments. The following table represents the loan deferment status change by loan type as of March 31, 2021: Loan Deferment Status Change by Loan Type Total deferments Payment resumed under the CARES Act or paid off Remaining deferments (Dollars in thousands) as of March 31, 2021 through March 31, 2021 as of March 31, 2021 Loan Type Number of accounts Balance Number of accounts Balance Number of accounts Balance Loans, excluding home mortgage and consumer loans 116 206,582 107 190,353 9 16,229 Home Mortgage loans 69 30,205 64 27,444 5 2,761 Total 185 $ 236,787 171 $ 217,797 14 $ 18,990 Paycheck Protection Program loans The Company originated 978 loans with an aggregate loan balance of $66.3 million under the first draw of SBA PPP, and $22.9 million and 429 loans from the first draw of SBA PPP loans have been forgiven as of March 31, 2021. The Company originated 1,336 loans with an aggregate loan balance of $74.2 million under the second draw of the SBA PPP loans as of March 31, 2021. The PPP loans are included in the SBA—non-real estate in the Company’s loan portfolio. Credit Quality Indicators Special Mention—Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard—Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. As of March 31, 2021 and December 31, 2020, and based on the most recent analysis performed, the balance of loans categorized by risk category and class of loans is as follows: Pass Special Mention Substandard Doubtful Total As of March 31, 2021: (Dollars in thousands) Commercial real estate $ 664,672 $ — $ — $ — $ 664,672 SBA loans—real estate 138,861 530 769 — 140,160 SBA loans—non-real estate 123,826 — 385 — 124,211 Commercial and industrial 99,280 — 4,832 — 104,112 Home mortgage 125,159 — 600 — 125,759 Consumer 1,076 — — — 1,076 $ 1,152,874 $ 530 $ 6,586 (1) $ — $ 1,159,990 As of December 31, 2020: Commercial real estate $ 654,235 $ — $ — $ — $ 654,235 SBA loans—real estate 134,815 535 1,523 — 136,873 SBA loans—non-real estate 75,453 — 198 — 75,651 Commercial and industrial 102,500 — 5,005 — 107,505 Home mortgage 128,084 — 599 — 128,683 Consumer 1,161 — — — 1,161 $ 1,096,248 $ 535 $ 7,325 (1) $ — $ 1,104,108 (1) Substandard loans include the guaranteed portion of unsold SBA loans. The aggregate balance of substandard loans, net of the guaranteed portion of unsold SBA loans is $6.4 million as of March 31, 2021. The Company did not have the guaranteed portion of unsold SBA loans as of December 31, 2020. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 5. Leases The Company’s operating leases are real estate leases which are comprised of its headquarters and office facilities from nonaffiliated parties with remaining lease terms ranging from four months to nine years as of March 31, 2021 . Certain lease arrangements contain extension options which are typically around five years. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. At March 31, 2021 and December 31, 2020 , operating right-of-use (“ROU”) assets were $6.4 million $6.8 million, respectively, and related liabilities were $8.0 million and $8.4 million, respectively. Short-term operating leases, which are defined as leases with term of twelve months or less, were not recognized as ROU assets with related lease liabilities as permitted under ASU No. 2016-02. The lease payments on short-term operating leases are immaterial. The Company did not have any finance leases at March 31, 2021 and December 31, 2020 . Operating lease ROU assets represent the Company’s right to use the underlying asset during the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the remaining lease payments using the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in occupancy and equipment expense in the consolidated statements of income. The Company’s occupancy and equipment expense also includes variable lease costs which is comprised of the Company's share of actual costs for utilities, common area maintenance, property taxes, and insurance that are not included in lease liabilities and are expensed as incurred. Variable lease costs can also include rent escalations based on changes to indices, such as the Consumer Price Index, where the Company estimates future rent increases and records the actual difference to variable costs. The table below summarized the Company’s total lease cost for the associated period: Three Months Ended March 31, (Dollars in thousands) 2021 2020 Operating lease cost $ 420 $ 444 Variable lease cost 218 184 Total lease cost $ 638 $ 628 The table below summarizes supplemental information related to the Company’s operating leases, as of the associated period: (Dollars in thousands) March 31, 2021 December 31, 2020 Operating right-of-use assets $ 6,443 $ 6,786 Operating lease liabilities 8,016 8,429 Weighted average remaining lease term - operating leases 4.8 years 5.0 years Weighted average discount rate - operating leases 2.99 % 2.99 % Three Months Ended March 31, (Dollars in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 505 $ 500 Rent expense was $638,000 and $628,000 for the three months ended March 31, 2021 and 2020, respectively. The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the consolidated balance sheet as of March 31, 2021: (Dollars in thousands) March 31, 2021 2021 remaining $ 1,536 2022 2,032 2023 1,811 2024 1,700 2025 676 Thereafter 956 Total lease payments 8,711 Discount to present value (695 ) Total lease liability $ 8,016 |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 6. Premises and equipment The Company’s premises and equipment consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 (Dollars in thousands) Leasehold improvements $ 6,882 $ 6,878 Furniture and fixtures 3,316 3,307 Equipment and others 2,732 2,593 Total cost 12,930 12,778 Accumulated depreciation (8,562 ) (8,234 ) Net book value $ 4,368 $ 4,544 Total depreciation expense included in occupancy and equipment expenses was $328,000 and $329,000 for the three months ended March 31, 2021 and 2020, respectively. |
Servicing Assets
Servicing Assets | 3 Months Ended |
Mar. 31, 2021 | |
Servicing Asset [Abstract] | |
Servicing Assets | Note 7. Servicing Assets Servicing assets at March 31, 2021 and December 31, 2020 were $7.5 million and $7.4 million, respectively. Activity for loan servicing assets during the three months ended March 31, 2021 and 2020 is as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Beginning balance $ 7,360 $ 7,024 Additions 570 406 Amortized to expense (438 ) (467 ) Ending balance $ 7,492 $ 6,963 There was no valuation allowance recorded against the carrying value of the servicing assets as of March 31, 2021 or 2020. The fair value of the servicing assets was $9.3 million at March 31, 2021, which was determined using discount rates ranging from 5.4% to 11.9% and prepayment speeds ranging from 14.3% to 14.4%, depending on the stratification of the specific assets. The fair value of the servicing assets was $8.0 million at March 31, 2020, which was determined using discount rates ranging from 5.7% to 11.9% and prepayment speeds ranging from 15.0% to 15.1%, depending on the stratification of the specific assets. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2021 | |
Deposits [Abstract] | |
Deposits | Note 8. Deposits Time deposits that exceed the FDIC insurance limit of $250,000 at March 31, 2021 and December 31, 2020 were $191.0 million and $200.2 million, respectively. The scheduled maturities of time deposits as of March 31, 2021 were as follows: March 31, 2021 (Dollars in thousands) 2021 remaining $ 272,931 2022 83,228 2023 1,694 2024 789 2025 582 Thereafter 33 Total $ 359,257 Deposits from principal officers, directors, and their affiliates as of March 31, 2021 and December 31, 2020 were $1.9 million and $1.5 million, respectively. |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Note 9. Borrowing Arrangements As of March 31, 2021, the Company had $5.0 million in borrowings from the Federal Home Loan Bank (“FHLB”) of San Francisco which had 0% rate under the Zero-Rate Recovery Advance Program, FHLB’s pandemic relief initiative. The Company had available borrowings from the following institutions as of March 31, 2021: March 31, 2021 (Dollars in thousands) Federal Home Loan Bank—San Francisco $ 269,708 Federal Reserve Bank 132,073 Pacific Coast Bankers Bank 50,000 Zions Bank 25,000 First Horizon Bank 25,000 Total $ 501,781 The Company has pledged approximately $914.0 million of loans as collateral for these lines of credit as of March 31, 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The Company’s income tax expense was $2.1 million and $1.2 million for the three months ended March 31, 2021 and 2020, respectively. The effective income tax rate was 28.8% and 26.1% for the three months ended March 31, 2021 and 2020, respectively. The Company is subject to U.S. Federal income tax as well as various state taxing jurisdictions. The Company is no longer subject to examination by Federal taxing authorities for tax years prior to 2017 and for state taxing authorities for tax years prior to 2016. There were no significant unrealized tax benefits recorded as of March 31, 2021 and 2020, and the Company does not expect any significant increase in unrealized tax benefits in the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Off-Balance-Sheet Credit Risk The Company evaluates the creditworthiness of each borrower. Collateral, if deemed necessary by the Company upon the extension of credit, is obtained based on management’s evaluation of the borrower. Collateral for commercial and industrial loans may vary, but may include securities, accounts receivable, inventory, property, plant and equipment, and income producing commercial or other properties. The following table shows the distribution of undisbursed loan commitments as of the dates indicated: March 31, 2021 December 31, 2020 (Dollars in thousands) Commitments to extend credit $ 108,887 $ 75,740 Standby letter of credit 8,586 9,212 Commercial letter of credit 981 1,552 Total undisbursed loan commitments $ 118,454 $ 86,504 The majority of these off-balance sheet commitments have a variable interest rate. Management does not anticipate any material losses as a result of these transactions. Investments in low income housing partnership March 31, 2021 December 31, 2020 (Dollars in thousands) Investments in low income housing partnerships $ 4,806 $ 4,932 Unfunded commitments to fund investments for low income housing partnerships 1,965 2,154 These balances are reflected in the other assets and other liabilities lines on the consolidated balance sheets. The Company expects to finish fulfilling these commitments during the year ending 2034. The Company recognized amortization expense of $127,000 and $54,000, for the three months ended March 31, 2021 and 2020, respectively, |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Note 12. Stock-based Compensation The Company has two stock-based compensation plans currently in effect as of March 31, 2021, as described further below. Total compensation cost charged against earnings for these plans was $131,000 and $358,000 for the three months ended March 31, 2021 and 2020, respectively. 2005 Plan The exercise prices of the options may not be less than 100% of the fair value of the Company’s common stock at the date of grant. The options, when granted, vest either immediately or ratably over five years from the date of the grant and expire after ten years if not exercised. The 2005 Plan expired in 2015 and no future grants can be made under the 2005 Plan. A summary of the transactions under the 2005 Plan for the three months ended March 31, 2021 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except per share data) Outstanding, as of January 1, 2021 100,000 $ 5.77 Options granted — — Options exercised (30,000 ) — Options forfeited — — Options expired — — Outstanding, as of March 31, 2021 70,000 6.30 $ 295 Fully vested and expected to vest 70,000 6.30 $ 295 Vested 70,000 $ 6.30 $ 295 Information related to the 2005 Plan for the periods indicated is as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Intrinsic value of options exercised $ 132 $ 370 Cash received from option exercises — 63 Tax benefit realized from option exercised 20 17 The weighted average remaining contractual term of stock options outstanding under the 2005 Plan at March 31, 2021 was 2.49 years. The weighted average remaining contractual term of stock options that were exercisable at March 31, 2021 was 2.49 years. All of the stock options that are outstanding under the 2005 Plan were fully vested as of March 31, 2021. 2010 Plan The exercise prices of stock options granted under the plan may not be less than 100% of the fair value of the Company’s stock at the date of grant. The options, when granted, vest ratably over five years from the date of the grant and expire after ten years if not exercised. There were no stock options granted under the 2010 Plan during the three months ended March 31, 2021 or 2020. Restricted stock awards issued under the 2010 Plan may or may not be subject to vesting provisions. No awards were granted in the three months ended March 31, 2021, or 2020. Owners of the restricted stock awards shall have all of the rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date. A summary of stock options outstanding under the 2010 Plan for the three months ended March 31, 2021 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except per share data) Outstanding, as of January 1, 2021 220,000 $ 7.75 Options granted — — Options exercised (10,000 ) 2.53 Options forfeited — — Options expired — — Outstanding, as of March 31, 2021 210,000 8.00 $ 529 Fully vested and expected to vest 202,500 8.00 $ 510 Vested 180,000 $ 8.00 $ 454 Information related to stock options exercised under the 2010 Plan for the periods indicated is as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Intrinsic value of options exercised $ 86 $ 519 Cash received from option exercises 25 242 Tax benefit realized from option exercised — 134 The weighted average remaining contractual term of stock options outstanding under the 2010 Plan at March 31, 2021 was 3.01 years. The weighted average remaining contractual term of stock options that were exercisable at March 31, 2021 was 3.01 years. A summary of the changes in the Company’s non-vested restricted stock awards under the 2010 Plan for the three months ended March 31, 2021 is as follows: Shares Issued Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (Dollars in thousands, except share data) Non-vested, as of January 1, 2021 154,500 $ 11.66 Awards granted — — Awards vested — — Awards forfeited — — Non-vested, as of March 31, 2021 154,500 $ 11.66 $ 1,625 No tax benefits or expenses were realized from restricted stock awards under the 2010 Plan for the three months ended March 31, 2021 or 2020. The 2010 Plan expired in August 2020, and no future grants can be made under the 2010 Plan. The Company had approximately $235,000 of unrecognized compensation cost related to unvested stock options and restricted stock awards under the 2010 Plan as of March 31, 2021. The Company expects to recognize these costs over a weighted average period of 0.52 years. |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 13. Employee Benefit Plan The Company established a 401(k) profit sharing plan (the “401(k) Plan”), which is open to all eligible employees who are at least 18 years old and have completed 90 days of service. Each employee is allowed to contribute to the 401(k) Plan up to the maximum percentage allowable, not to exceed the limits of applicable IRS Code Sections. Each year, the Company may, in its discretion, make matching contributions to the 401(k) Plan. Total employer contributions to the 401(k) Plan amounted to $174,000 and $180,000 for the three months ended March 31, 2021 and 2020, respectively. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 14. Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, letters of credit, and investment securities, as well as revenue related to mortgage servicing activities and revenue on COLI, as these activities are subject to other GAAP discussed elsewhere within the disclosures. Descriptions of the Company’s revenue-generating activities that are within the scope of ASC 606, which are presented in the Company’s income statements as components of noninterest income are as follows: Service charges on deposits Wire transfer fee income: Other revenue streams that are recorded in other income in noninterest income include revenue generated from letters of credit and income on COLI. These revenue streams are either not material or out of scope of ASC 606. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 15. Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Securities Available for Sale Other Investment Impaired Loans Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 are summarized below: Fair Value Measure Using Quoted Significant Other Significant Prices in Observable Unobservable Total Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) As of March 31, 2021 : U.S. Government sponsored agency securities $ 1,001 $ — $ 1,001 $ — Mortgage-backed securities - residential 25,428 — 25,428 — Collateralized mortgage obligations 75,984 — 75,984 — Other investments: Mutual fund - CRA qualified 3,720 3,720 — — As of December 31, 2020 : U.S. Government sponsored agency securities $ 5,001 $ — $ 5,001 $ — Mortgage-backed securities - residential 15,641 — 15,641 — Collateralized mortgage obligations 35,907 — 35,907 — Other investments: Mutual fund - CRA qualified 3,628 3,628 — — There were no transfers between Level 1 and Level 2 in the three months ended March 31, 2021 or 2020. There were no assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2021 or December 31, 2020. Financial Instruments Carrying Amount Level 1 Level 2 Level 3 Value As of March 31, 2021: (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 127,524 $ 127,524 $ — $ — $ 127,524 Loans held for sale 28,575 — 31,238 — 31,238 Loans receivable, net 1,140,533 — — 1,156,500 1,156,500 Accrued interest receivable, net 3,096 8 249 2,839 3,096 Other investments: FHLB and PCBB stock 6,233 N/A N/A N/A N/A Financial Liabilities: Deposit $ 1,285,390 $ — $ 1,285,750 $ — $ 1,285,750 FHLB Advances 5,000 — 5,000 — 5,000 Accrued interest payable 622 — 622 — 622 The carrying amounts and estimated fair values of financial instruments not carried at fair value as of December 31, 2020 are as follows: Carrying Amount Level 1 Level 2 Level 3 Value As of December 31, 2020: (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 106,405 $ 106,405 $ — $ — $ 106,405 Loans held for sale 26,659 — 26,659 — 26,659 Loans receivable, net 1,084,384 — — 1,109,217 1,109,217 Accrued interest receivable, net 3,985 7 249 3,729 3,985 Other investments: FHLB and PCBB stock 6,233 N/A N/A N/A N/A Financial Liabilities: Deposit $ 1,200,090 $ — $ 1,200,789 $ — $ 1,200,789 FHLB Advances 5,000 $ — $ 5,000 $ — 5,000 Accrued interest payable 1,021 — 1,021 — 1,021 |
Regulatory Capital Matters
Regulatory Capital Matters | 3 Months Ended |
Mar. 31, 2021 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Matters | Note 16. Regulatory Capital Matters Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. As of March 31, 2021, the capital conservation buffers for the Company is 2.50%. Management believes that as of March 31, 2021 and December 31, 2020, the Bank met all capital adequacy requirements to which they are subject to. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well. Unrealized gain or loss on securities available-for-sale is not included in computing regulatory capital. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2021: Total capital (to risk-weighted assets) Consolidated $ 159,626 15.04 % N/A N/A N/A N/A Bank 156,697 14.77 % 84,884 8.00 % 106,106 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 146,319 13.79 % N/A N/A N/A N/A Bank 143,391 13.51 % 63,663 6.00 % 84,884 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 146,319 13.79 % N/A N/A N/A N/A Bank 143,391 13.51 % 47,747 4.50 % 68,969 6.50 % Tier 1 capital (to average assets) Consolidated 146,319 10.38 % N/A N/A N/A N/A Bank 143,391 10.17 % 56,376 4.00 % 70,470 5.00 % Note: The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020: Total capital (to risk-weighted assets) Consolidated $ 155,287 14.81 % N/A N/A N/A N/A Bank 152,232 14.52 % 83,859 8.00 % 104,824 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 142,147 13.56 % N/A N/A N/A N/A Bank 139,092 13.27 % 62,894 6.00 % 83,859 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 142,147 13.56 % N/A N/A N/A N/A Bank 139,092 13.27 % 47,171 4.50 % 68,136 6.50 % Tier 1 capital (to average assets) Consolidated 142,147 10.55 % N/A N/A N/A N/A Bank 139,092 10.32 % 53,915 4.00 % 67,393 5.00 % Note: The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 17. Earnings per Share The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shares are allocated between common shares and participating securities. The Company’s restricted stock awards are considered participating securities as the unvested awards have non-forfeitable rights to dividends, paid or unpaid, on unvested awards. The factors used in the earnings per share computation are as follows: Three Months Ended March 31, (Dollars in thousands, except share data) 2021 2020 Basic Net income $ 5,077 $ 3,299 Undistributed earnings allocated to participating securities (52 ) (62 ) Net income allocated to common shares 5,025 3,237 Weighted average common shares outstanding 15,022,876 15,486,549 Basic earnings per common share $ 0.33 $ 0.21 Diluted Net income allocated to common shares $ 5,025 $ 3,237 Weighted average common shares outstanding for basic earnings per common share 15,022,876 15,486,549 Add: Dilutive effects of assumed exercises of stock options 46,568 99,706 Average shares and dilutive potential common shares 15,069,444 15,586,255 Diluted earnings per common share $ 0.33 $ 0.21 No shares of common stock were antidilutive for the three months ended March 31, 2021 or 2020 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of the financial results for the interim periods presented, including eliminating intercompany transactions and balances. The results of operations for the interim periods are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Use of Estimates | Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The Company could experience a material adverse effect on its business as a result of the impact of the novel coronavirus pandemic (“COVID-19”) and the resulting governmental actions to curtail its spread. It is at least reasonably possible that the estimates based on information which was available at the date of the financial statements will change in the near term due to the COVID-19 pandemic and that the effect of the change would be material to the financial statements, including the allowance for loan losses. The extent to which the COVID-19 pandemic will impact our estimates and assumptions is highly uncertain and we are unable to make an estimate, at this time. |
Concentration of Risk | Concentration of Risk: Most of the Company’s customers are located within Los Angeles County and the surrounding area. The concentration of loans originated in this area may subject the Company to the risk of adverse impacts associated with economic, regulatory or other developments that could occur in Southern California. The Company has significant concentration in commercial real estate loans. The Company obtains what it believes to be sufficient collateral to secure potential losses. The extent and value of the collateral obtained varies based upon the details underlying each loan agreement. There have been no significant or material changes to the Company’s accounting policies during the three months ended March 31, 2021, as compared to the Summary of Significant Accounting Policies as described in “Note 1 of the Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The objective of ASU 2016-13 is to provide financial statement users with decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 includes provisions that require financial assets measured at amortized cost (such as loans and held to maturity (HTM) debt securities) to be presented at the net amount expected to be collected. This will be accomplished through recognition of an estimate of all current expected credit losses. The estimate will include forecasted information for the timeframe that an entity is able to develop reasonable and supportable forecasts. This is a change from the current practice of recognizing incurred losses based on the probable initial recognition threshold under current GAAP. In addition, credit losses on available for sale (AFS) debt securities will be recorded through an allowance for credit losses rather than as a write-down. Under ASU 2016-13, an entity will be able to record reversals of credit losses in current period income when the estimate of credit losses declines, whereas current GAAP prohibits reflecting those improvements in current period earnings. In July 2019, FASB proposed the effective date delay to January 2020 for SEC filers, excluding smaller reporting companies (“SRCs”) and emerging growth companies (“EGCs”), and January 2023 for all other entities including SRCs and EGCs, and on October 2019, FASB voted to approve the proposed delay. The Company expects the adoption date of ASU 2016-13 will be January 2023. ASU 2016-13 will be applied through a cumulative effect adjustment to retained earnings (modified-retrospective approach), except for debt securities for which an other-than-temporary impairment had been recognized before the effective date. A prospective transition approach is required for these debt securities. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures, including software solutions, data requirements and loss estimation methodologies. The company has engaged a third party advisor to develop a new expected loss model. While the effects cannot yet be quantified, the Company expects ASU 2016-13 to add complexity and costs to its current credit loss evaluation process. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in transition to use SOFR to replace LIBOR and does not expect the transition willl be material to its consolidated statement of income. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This amendment simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amedments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The effective date will be January 2023. T he Company does not expect the adoption of this guidance will be material to its consolidated statement of income. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost, Corresponding Amounts of Gross Unrealized Gains and Losses and Estimated Fair Value of Securities Available for Sale | The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of securities available for sale as of March 31, 2021 and December 31, 2020: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value As of March 31, 2021: (Dollars in thousands) Available for sale: U.S. Government sponsored agency securities $ 1,000 $ 1 $ — $ 1,001 Mortgage-backed securities: residential 25,196 352 (120 ) 25,428 Collateralized mortgage obligations: residential 75,772 679 (467 ) 75,984 Total available for sale $ 101,968 $ 1,032 $ (587 ) $ 102,413 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value As of December 31, 2020: (Dollars in thousands) Available for sale: U.S. Government sponsored agency securities $ 1,000 $ 5 $ — $ 1,005 Mortgage-backed securities: residential 19,281 430 (7 ) 19,704 Collateralized mortgage obligations: residential 70,318 814 (50 ) 71,082 Total available for sale $ 90,599 $ 1,249 $ (57 ) $ 91,791 |
Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity | There were no sales of securities available for sale in the three months ended March 31, 2021 or 2020. The amortized cost and estimated fair value of securities available for sale at March 31, 2021, by contractual maturity, are shown below. Securities without a contractual maturity are shown separately. Amortized Cost Fair Value As of March 31, 2021: (Dollars in thousands) Available for sale: Within one year $ 1,000 $ 1,001 One to five years 938 978 Mortgage-backed securities: residential 24,258 24,450 Collateralized mortgage obligations: residential 75,772 75,984 Total available for sale $ 101,968 $ 102,413 |
Schedule of Securities With Unrealized Losses Aggregated by Length of Time in Continuous Unrealized Loss Position | The following table summarizes securities with unrealized losses as of March 31, 2021 and December 31, 2020, respectively, aggregated by length of time held in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of March 31, 2021: (Dollars in thousands) Available for sale: Mortgage-backed securities: residential $ 12,426 $ (120 ) $ — $ — $ 12,426 $ (120 ) Collateralized mortgage obligations: residential 34,616 (467 ) — — 34,616 (467 ) Total available for sale $ 47,042 $ (587 ) $ — $ — $ 47,042 $ (587 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of December 31, 2020: (Dollars in thousands) Available for sale: Mortgage-backed securities: residential $ 3,089 $ (7 ) $ — $ — $ 3,089 $ (7 ) Collateralized mortgage obligations: residential 13,593 (50 ) — — 13,593 (50 ) Total available for sale $ 16,682 $ (57 ) $ - $ - $ 16,682 $ (57 ) |
Schedule of Other Investments | Other investments as of March 31, 2021 and December 31, 2020, consisted of the following: March 31, 2021 December 31, 2020 (Dollars in thousands) Federal Home Loan Bank (FHLB) stock $ 6,043 $ 6,043 Pacific Coast Bankers Bank (PCBB) stock 190 190 Mutual fund - CRA qualified 3,720 3,773 Total other investments $ 9,953 $ 10,006 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The composition of the loan portfolio was as follows at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 (Dollars in thousands) Real estate: Commercial real estate $ 662,445 $ 651,684 SBA loans—real estate 139,503 136,224 Total real estate 801,948 787,908 SBA loans—non-real estate 123,682 (1) 75,151 Commercial and industrial 103,883 107,307 Home mortgage 125,285 128,212 Consumer 1,074 1,158 Gross loans receivable 1,155,872 1,099,736 Allowance for loan losses (15,339 ) (15,352 ) Loans receivable, net $ 1,140,533 $ 1,084,384 (1) At March 31, 2021 and December 31, 2020, SBA loans - non-real estate balances include SBA PPP loans of $113.6 million and $64.9 million, respectively. |
Schedule of Activity in Allowance for Loan Losses | The activity in the allowance for loan losses for the three months ended March 31, 2021 and 2020 was as follows: SBA Commercial SBA Loans Loans Non- Commercial Home Real Estate Real Estate Real Estate and Industrial Mortgage Consumer Total (Dollars in thousands) Three months ended March 31, 2021: Beginning balance $ 8,505 $ 1,802 $ 278 $ 2,563 $ 2,185 $ 19 $ 15,352 Provision for loan losses (1) 89 228 14 (232 ) (110 ) (5 ) (16 ) Charge-offs — — — — — — — Recoveries — — — — — 3 3 Ending balance $ 8,594 $ 2,030 $ 292 $ 2,331 $ 2,075 $ 17 $ 15,339 Three months ended March 31, 2020: Beginning balance $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 Provision for loan losses 210 143 116 3 254 17 743 Charge-offs — — (45 ) — — — (45 ) Recoveries — — — — — — — Ending balance $ 6,210 $ 1,082 $ 192 $ 1,292 $ 1,921 $ 51 $ 10,748 (1) Loan loss provision for the three months ended March 31, 2021, reported on income statement is $620,000. The difference of $636,000 is allocated to allowance on accrued interest receivable on loan deferrals and loans that are no longer on deferral but have not fully caught up on their accrued interest. |
Schedule of Allowance for Loan Losses and Recorded Investment in Loans (including accrued interest receivable) by Portfolio Segment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans (including accrued interest receivable of $4.1 million and $4.4 million as of March 31, 2021 and December 31, 2020, respectively) by portfolio segment as of March 31, 2021 and December 31, 2020: Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total As of March 31, 2021: (Dollars in thousands) Allowance for loan losses: Commercial real estate $ — $ 8,594 $ 8,594 SBA loans—real estate — 2,030 2,030 SBA loans—non-real estate 125 167 292 Commercial and industrial 326 2,005 2,331 Home mortgage — 2,075 2,075 Consumer — 17 17 Total $ 451 $ 14,888 $ 15,339 Loans: Commercial real estate $ — $ 664,672 $ 664,672 SBA loans—real estate — 140,160 140,160 SBA loans—non-real estate 335 123,876 124,211 Commercial and industrial 327 103,785 104,112 Home mortgage — 125,759 125,759 Consumer — 1,076 1,076 Total $ 662 $ 1,159,328 $ 1,159,990 As of December 31, 2020: Allowance for loan losses: Commercial real estate $ — $ 8,505 $ 8,505 SBA loans—real estate — 1,802 1,802 SBA loans—non-real estate 87 191 278 Commercial and industrial 330 2,233 2,563 Home mortgage — 2,185 2,185 Consumer — 19 19 Total $ 417 $ 14,935 $ 15,352 Loans: Commercial real estate $ — $ 654,235 $ 654,235 SBA loans—real estate — 136,873 136,873 SBA loans—non-real estate 174 75,477 75,651 Commercial and industrial 330 107,175 107,505 Home mortgage — 128,683 128,683 Consumer — 1,161 1,161 Total $ 504 $ 1,103,604 $ 1,104,108 |
Schedule of Impaired Loans and Specific Allowance | The following table presents the recorded investment of individually impaired loans and the specific allowance for loan losses as of March 31, 2021 and December 31, 2020. The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans is not considered to be material. As of March 31, 2021 As of December 31, 2020 Recorded Allowance Recorded Allowance Investment Allocated Investment Allocated (Dollars in thousands) With an allowance recorded: SBA loans—non-real estate $ 335 $ 124 $ 174 $ 87 Commercial and industrial 327 327 330 330 Total $ 662 $ 451 $ 504 $ 417 The following table presents information related to impaired loans by class of loans for the three months ended March 31, 2021 and 2020. The difference between interest income recognized and cash basis interest recognized was immaterial. Average Interest Recorded Income Investment Recognized For the three months ended March 31, 2021: (Dollars in thousands) With an allowance recorded: SBA loans—non-real estate $ 255 $ 4 Commercial and industrial 330 3 Total $ 585 $ 7 For the three months ended March 31, 2020: With no related allowance recorded: SBA loans—real estate $ 480 $ — SBA loans—non-real estate 33 — With an allowance recorded: SBA loans—non-real estate 126 9 Commercial and industrial 331 4 Total $ 970 $ 13 |
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due Greater Than 90 Days Still Accruing Interest by Class of Loans | The following table presents the recorded investment in nonaccrual loans and loans past due greater than 90 days still accruing interest, by class of loans, as of March 31, 2021 and December 31, 2020: Nonaccrual Loans >90 Days Past Due & Still Accruing Total (Dollars in thousands) As of March 31, 2021: SBA loans—non-real estate $ 221 $ — $ 221 Commercial and industrial 327 — 327 Home mortgage 600 — 600 Total $ 1,148 $ — $ 1,148 As of December 31, 2020: SBA loans—non-real estate $ 56 $ — $ 56 Commercial and industrial 330 — 330 Home mortgage 599 — 599 Total $ 985 $ — $ 985 |
Schedule of Aging of Recorded Investment in Past Due Loans | The following table represents the aging of the recorded investment in past due loans as of March 31, 2021 and December 31, 2020: 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Loans Not Past Due Total As of March 31, 2021: (Dollars in thousands) Commercial real estate $ — $ — $ — $ — $ 664,672 $ 664,672 SBA—real estate — — — — 140,160 140,160 SBA—non-real estate — — 221 221 123,990 124,211 Commercial and industrial — — — — 104,112 104,112 Home mortgage — — 600 600 125,159 125,759 Consumer — — — — 1,076 1,076 $ — $ — $ 821 $ 821 $ 1,159,169 $ 1,159,990 As of December 31, 2020: Commercial real estate $ — $ — $ — $ — $ 654,235 $ 654,235 SBA—real estate — — — — 136,873 136,873 SBA—non-real estate — — — — 75,651 75,651 Commercial and industrial — — — — 107,505 107,505 Home mortgage — — 599 599 128,084 128,683 Consumer — — — — 1,161 1,161 $ — $ — $ 599 $ 599 $ 1,103,509 $ 1,104,108 |
Schedule of Loan Deferment Status Change by Loan Type | The following table represents the loan deferment status change by loan type as of March 31, 2021: Loan Deferment Status Change by Loan Type Total deferments Payment resumed under the CARES Act or paid off Remaining deferments (Dollars in thousands) as of March 31, 2021 through March 31, 2021 as of March 31, 2021 Loan Type Number of accounts Balance Number of accounts Balance Number of accounts Balance Loans, excluding home mortgage and consumer loans 116 206,582 107 190,353 9 16,229 Home Mortgage loans 69 30,205 64 27,444 5 2,761 Total 185 $ 236,787 171 $ 217,797 14 $ 18,990 |
Schedule of Risk Category of Loans by Class of Loans | As of March 31, 2021 and December 31, 2020, and based on the most recent analysis performed, the balance of loans categorized by risk category and class of loans is as follows: Pass Special Mention Substandard Doubtful Total As of March 31, 2021: (Dollars in thousands) Commercial real estate $ 664,672 $ — $ — $ — $ 664,672 SBA loans—real estate 138,861 530 769 — 140,160 SBA loans—non-real estate 123,826 — 385 — 124,211 Commercial and industrial 99,280 — 4,832 — 104,112 Home mortgage 125,159 — 600 — 125,759 Consumer 1,076 — — — 1,076 $ 1,152,874 $ 530 $ 6,586 (1) $ — $ 1,159,990 As of December 31, 2020: Commercial real estate $ 654,235 $ — $ — $ — $ 654,235 SBA loans—real estate 134,815 535 1,523 — 136,873 SBA loans—non-real estate 75,453 — 198 — 75,651 Commercial and industrial 102,500 — 5,005 — 107,505 Home mortgage 128,084 — 599 — 128,683 Consumer 1,161 — — — 1,161 $ 1,096,248 $ 535 $ 7,325 (1) $ — $ 1,104,108 (1) Substandard loans include the guaranteed portion of unsold SBA loans. The aggregate balance of substandard loans, net of the guaranteed portion of unsold SBA loans is $6.4 million as of March 31, 2021. The Company did not have the guaranteed portion of unsold SBA loans as of December 31, 2020. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease, Cost | The table below summarized the Company’s total lease cost for the associated period: Three Months Ended March 31, (Dollars in thousands) 2021 2020 Operating lease cost $ 420 $ 444 Variable lease cost 218 184 Total lease cost $ 638 $ 628 |
Summary of Supplemental information Related to Operating Leases | The table below summarizes supplemental information related to the Company’s operating leases, as of the associated period: (Dollars in thousands) March 31, 2021 December 31, 2020 Operating right-of-use assets $ 6,443 $ 6,786 Operating lease liabilities 8,016 8,429 Weighted average remaining lease term - operating leases 4.8 years 5.0 years Weighted average discount rate - operating leases 2.99 % 2.99 % Three Months Ended March 31, (Dollars in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 505 $ 500 |
Summary of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease liability | The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the consolidated balance sheet as of March 31, 2021: (Dollars in thousands) March 31, 2021 2021 remaining $ 1,536 2022 2,032 2023 1,811 2024 1,700 2025 676 Thereafter 956 Total lease payments 8,711 Discount to present value (695 ) Total lease liability $ 8,016 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment | The Company’s premises and equipment consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 (Dollars in thousands) Leasehold improvements $ 6,882 $ 6,878 Furniture and fixtures 3,316 3,307 Equipment and others 2,732 2,593 Total cost 12,930 12,778 Accumulated depreciation (8,562 ) (8,234 ) Net book value $ 4,368 $ 4,544 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Servicing Asset [Abstract] | |
Schedule of Activity for Loan Servicing Assets | Servicing assets at March 31, 2021 and December 31, 2020 were $7.5 million and $7.4 million, respectively. Activity for loan servicing assets during the three months ended March 31, 2021 and 2020 is as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Beginning balance $ 7,360 $ 7,024 Additions 570 406 Amortized to expense (438 ) (467 ) Ending balance $ 7,492 $ 6,963 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | The scheduled maturities of time deposits as of March 31, 2021 were as follows: March 31, 2021 (Dollars in thousands) 2021 remaining $ 272,931 2022 83,228 2023 1,694 2024 789 2025 582 Thereafter 33 Total $ 359,257 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings Available to the Company from Institutions | The Company had available borrowings from the following institutions as of March 31, 2021: March 31, 2021 (Dollars in thousands) Federal Home Loan Bank—San Francisco $ 269,708 Federal Reserve Bank 132,073 Pacific Coast Bankers Bank 50,000 Zions Bank 25,000 First Horizon Bank 25,000 Total $ 501,781 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Distribution of Undisbursed Loan Commitments | The following table shows the distribution of undisbursed loan commitments as of the dates indicated: March 31, 2021 December 31, 2020 (Dollars in thousands) Commitments to extend credit $ 108,887 $ 75,740 Standby letter of credit 8,586 9,212 Commercial letter of credit 981 1,552 Total undisbursed loan commitments $ 118,454 $ 86,504 |
Schedule of Balance and Total Unfunded Commitments Related to Investment in Low Income Housing Partnerships | The following table shows the balance of the investments in low income housing partnerships and the total unfunded commitments related to the investments in low income housing partnerships as of the dates indicated: March 31, 2021 December 31, 2020 (Dollars in thousands) Investments in low income housing partnerships $ 4,806 $ 4,932 Unfunded commitments to fund investments for low income housing partnerships 1,965 2,154 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
2005 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock-based Compensation Stock Options Activity | A summary of the transactions under the 2005 Plan for the three months ended March 31, 2021 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except per share data) Outstanding, as of January 1, 2021 100,000 $ 5.77 Options granted — — Options exercised (30,000 ) — Options forfeited — — Options expired — — Outstanding, as of March 31, 2021 70,000 6.30 $ 295 Fully vested and expected to vest 70,000 6.30 $ 295 Vested 70,000 $ 6.30 $ 295 |
Summary of Information Related to Stock Option Plan | Information related to the 2005 Plan for the periods indicated is as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Intrinsic value of options exercised $ 132 $ 370 Cash received from option exercises — 63 Tax benefit realized from option exercised 20 17 |
2010 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock-based Compensation Stock Options Activity | A summary of stock options outstanding under the 2010 Plan for the three months ended March 31, 2021 is as follows: Weighted Number of Average Aggregate Options Exercise Intrinsic Outstanding Price Value (Dollars in thousands, except per share data) Outstanding, as of January 1, 2021 220,000 $ 7.75 Options granted — — Options exercised (10,000 ) 2.53 Options forfeited — — Options expired — — Outstanding, as of March 31, 2021 210,000 8.00 $ 529 Fully vested and expected to vest 202,500 8.00 $ 510 Vested 180,000 $ 8.00 $ 454 |
Summary of Information Related to Stock Option Plan | Information related to stock options exercised under the 2010 Plan for the periods indicated is as follows: Three Months Ended March 31, 2021 2020 (Dollars in thousands) Intrinsic value of options exercised $ 86 $ 519 Cash received from option exercises 25 242 Tax benefit realized from option exercised — 134 |
Summary of Changes in Non-vested Restricted Stock Awards | A summary of the changes in the Company’s non-vested restricted stock awards under the 2010 Plan for the three months ended March 31, 2021 is as follows: Shares Issued Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (Dollars in thousands, except share data) Non-vested, as of January 1, 2021 154,500 $ 11.66 Awards granted — — Awards vested — — Awards forfeited — — Non-vested, as of March 31, 2021 154,500 $ 11.66 $ 1,625 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 are summarized below: Fair Value Measure Using Quoted Significant Other Significant Prices in Observable Unobservable Total Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) As of March 31, 2021 : U.S. Government sponsored agency securities $ 1,001 $ — $ 1,001 $ — Mortgage-backed securities - residential 25,428 — 25,428 — Collateralized mortgage obligations 75,984 — 75,984 — Other investments: Mutual fund - CRA qualified 3,720 3,720 — — As of December 31, 2020 : U.S. Government sponsored agency securities $ 5,001 $ — $ 5,001 $ — Mortgage-backed securities - residential 15,641 — 15,641 — Collateralized mortgage obligations 35,907 — 35,907 — Other investments: Mutual fund - CRA qualified 3,628 3,628 — — |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | Financial Instruments Carrying Amount Level 1 Level 2 Level 3 Value As of March 31, 2021: (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 127,524 $ 127,524 $ — $ — $ 127,524 Loans held for sale 28,575 — 31,238 — 31,238 Loans receivable, net 1,140,533 — — 1,156,500 1,156,500 Accrued interest receivable, net 3,096 8 249 2,839 3,096 Other investments: FHLB and PCBB stock 6,233 N/A N/A N/A N/A Financial Liabilities: Deposit $ 1,285,390 $ — $ 1,285,750 $ — $ 1,285,750 FHLB Advances 5,000 — 5,000 — 5,000 Accrued interest payable 622 — 622 — 622 The carrying amounts and estimated fair values of financial instruments not carried at fair value as of December 31, 2020 are as follows: Carrying Amount Level 1 Level 2 Level 3 Value As of December 31, 2020: (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 106,405 $ 106,405 $ — $ — $ 106,405 Loans held for sale 26,659 — 26,659 — 26,659 Loans receivable, net 1,084,384 — — 1,109,217 1,109,217 Accrued interest receivable, net 3,985 7 249 3,729 3,985 Other investments: FHLB and PCBB stock 6,233 N/A N/A N/A N/A Financial Liabilities: Deposit $ 1,200,090 $ — $ 1,200,789 $ — $ 1,200,789 FHLB Advances 5,000 $ — $ 5,000 $ — 5,000 Accrued interest payable 1,021 — 1,021 — 1,021 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer | The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2021: Total capital (to risk-weighted assets) Consolidated $ 159,626 15.04 % N/A N/A N/A N/A Bank 156,697 14.77 % 84,884 8.00 % 106,106 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 146,319 13.79 % N/A N/A N/A N/A Bank 143,391 13.51 % 63,663 6.00 % 84,884 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 146,319 13.79 % N/A N/A N/A N/A Bank 143,391 13.51 % 47,747 4.50 % 68,969 6.50 % Tier 1 capital (to average assets) Consolidated 146,319 10.38 % N/A N/A N/A N/A Bank 143,391 10.17 % 56,376 4.00 % 70,470 5.00 % Note: The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. Required for Minimum Capital Adequacy To be Considered Actual Purposes "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020: Total capital (to risk-weighted assets) Consolidated $ 155,287 14.81 % N/A N/A N/A N/A Bank 152,232 14.52 % 83,859 8.00 % 104,824 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 142,147 13.56 % N/A N/A N/A N/A Bank 139,092 13.27 % 62,894 6.00 % 83,859 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Consolidated 142,147 13.56 % N/A N/A N/A N/A Bank 139,092 13.27 % 47,171 4.50 % 68,136 6.50 % Tier 1 capital (to average assets) Consolidated 142,147 10.55 % N/A N/A N/A N/A Bank 139,092 10.32 % 53,915 4.00 % 67,393 5.00 % Note: The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The factors used in the earnings per share computation are as follows: Three Months Ended March 31, (Dollars in thousands, except share data) 2021 2020 Basic Net income $ 5,077 $ 3,299 Undistributed earnings allocated to participating securities (52 ) (62 ) Net income allocated to common shares 5,025 3,237 Weighted average common shares outstanding 15,022,876 15,486,549 Basic earnings per common share $ 0.33 $ 0.21 Diluted Net income allocated to common shares $ 5,025 $ 3,237 Weighted average common shares outstanding for basic earnings per common share 15,022,876 15,486,549 Add: Dilutive effects of assumed exercises of stock options 46,568 99,706 Average shares and dilutive potential common shares 15,069,444 15,586,255 Diluted earnings per common share $ 0.33 $ 0.21 |
Business Description - Addition
Business Description - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021BranchOffice | |
Business Description [Line Items] | |
Operations commenced date | Jun. 1, 2016 |
Number of full service branches | Branch | 9 |
Number of loan production offices | Office | 4 |
Open Bank | |
Business Description [Line Items] | |
Percentage of voting equity interests acquired | 100.00% |
Operations commenced date | Jun. 10, 2005 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost, Corresponding Amounts of Gross Unrealized Gains and Losses and Estimated Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 101,968 | $ 90,599 |
Gross Unrealized Gains | 1,032 | 1,249 |
Gross Unrealized Losses | (587) | (57) |
Fair Value | 102,413 | 91,791 |
U.S. Government Sponsored Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains | 1 | 5 |
Fair Value | 1,001 | 1,005 |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 25,196 | 19,281 |
Gross Unrealized Gains | 352 | 430 |
Gross Unrealized Losses | (120) | (7) |
Fair Value | 25,428 | 19,704 |
Collateralized Mortgage Obligations, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 75,772 | 70,318 |
Gross Unrealized Gains | 679 | 814 |
Gross Unrealized Losses | (467) | (50) |
Fair Value | $ 75,984 | $ 71,082 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Proceeds from sale of available-for-sale securities | $ 0 | $ 0 | |
Other than temporary impairments unrealized losses on securities | 0 | ||
Mutual fund - CRA qualified | 3,720,000 | $ 3,773,000 | |
Other Income | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Unrealized holding (losses) gains on investment | (79,000) | $ 58,000 | |
Collateral Pledged | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Number of securities pledged as collateral | $ 0 | $ 0 | |
Stockholder's Equity | Credit Concentration Risk | Non-US Government and Agency Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Within one year, Amortized Cost | $ 1,000 | |
Available for sale, One to five years, Amortized Cost | 938 | |
Available for sale, Amortized Cost | 101,968 | $ 90,599 |
Available for sale, Within one year, Fair Value | 1,001 | |
Available for sale, One to five years, Fair Value | 978 | |
Available for sale, Fair Value | 102,413 | 91,791 |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, debt maturities Amortized Cost | 24,258 | |
Available for sale, Amortized Cost | 25,196 | 19,281 |
Available for sale, debt maturities Fair Value | 24,450 | |
Available for sale, Fair Value | 25,428 | 19,704 |
Collateralized Mortgage Obligations, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 75,772 | 70,318 |
Available for sale, Fair Value | $ 75,984 | $ 71,082 |
Securities - Schedule of Securi
Securities - Schedule of Securities With Unrealized Losses Aggregated by Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | $ 47,042 | $ 16,682 |
Unrealized Losses, Less Than 12 Months | (587) | (57) |
Total Fair Value | 47,042 | 16,682 |
Total Unrealized Losses | (587) | (57) |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 12,426 | 3,089 |
Unrealized Losses, Less Than 12 Months | (120) | (7) |
Total Fair Value | 12,426 | 3,089 |
Total Unrealized Losses | (120) | (7) |
Collateralized Mortgage Obligations, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 34,616 | 13,593 |
Unrealized Losses, Less Than 12 Months | (467) | (50) |
Total Fair Value | 34,616 | 13,593 |
Total Unrealized Losses | $ (467) | $ (50) |
Securities - Schedule of Other
Securities - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Federal Home Loan Bank (FHLB) stock | $ 6,043 | $ 6,043 |
Pacific Coast Bankers Bank (PCBB) stock | 190 | 190 |
Mutual fund - CRA qualified | 3,720 | 3,773 |
Total other investments | $ 9,953 | $ 10,006 |
Loans - Composition of Loan Por
Loans - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | $ 1,155,872 | $ 1,099,736 |
Allowance for loan losses | (15,339) | (15,352) |
Loans receivable, net | 1,140,533 | 1,084,384 |
Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 801,948 | 787,908 |
Real Estate | Commercial Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 662,445 | 651,684 |
Real Estate | SBA Loans—Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 139,503 | 136,224 |
SBA Loans—Non-Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 123,682 | 75,151 |
Commercial and Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 103,883 | 107,307 |
Home Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 125,285 | 128,212 |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | $ 1,074 | $ 1,158 |
Loans - Composition of Loan P_2
Loans - Composition of Loan Portfolio (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | $ 1,155,872 | $ 1,099,736 |
SBA Loans—Non-Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | 123,682 | 75,151 |
SBA Loans—Non-Real Estate | SBA PPP Loan | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Gross loans receivable | $ 113,600 | $ 64,900 |
Loans - Additional Information
Loans - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)Contractloan | Mar. 31, 2020USD ($)Contract | Dec. 31, 2020USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans | $ 0 | $ 0 | |
Accrued interest receivable | 4,100,000 | 4,400,000 | |
Recorded investment in troubled debt restructurings | 327,000 | 330,000 | |
Specific reserves to customers whose loan terms have been modified in TDRs | $ 327,000 | 330,000 | |
Loans identified as TDRs | Contract | 0 | 0 | |
Financing receivable, modifications, subsequent default, recorded investment | $ 0 | $ 0 | |
Loans aggregate balance | $ 1,159,990,000 | 1,104,108,000 | |
First Draw of SBA PPP Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Number of loans originated | loan | 978 | ||
Total loans funded | $ 66,300,000 | ||
Loans forgiven | $ 22,900,000 | ||
Number of loans forgiven | loan | 429 | ||
Second Draw of SBA PPP Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Number of loans originated | loan | 1,336 | ||
Total loans funded | $ 74,200,000 | ||
Home Mortgage | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans aggregate balance | 125,759,000 | $ 128,683,000 | |
Payment Deferral | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Recorded investment in troubled debt restructurings | $ 236,787,000 | ||
Number of processed loan deferments | loan | 185 | ||
Number of loans | loan | 171 | ||
Loans aggregate balance | $ 217,797,000 | ||
Payment Deferral | Home Mortgage | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Recorded investment in troubled debt restructurings | $ 30,205,000 | ||
Number of processed loan deferments | loan | 69 | ||
Number of loans | loan | 64 | ||
Loans aggregate balance | $ 27,444,000 |
Loans - Schedule of Activity in
Loans - Schedule of Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | $ 15,352 | $ 10,050 |
Provision for loan losses | (16) | 743 |
Charge-offs | (45) | |
Recoveries | 3 | |
Ending balance | 15,339 | 10,748 |
Commercial Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 8,505 | 6,000 |
Provision for loan losses | 89 | 210 |
Ending balance | 8,594 | 6,210 |
SBA Loans-Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 1,802 | 939 |
Provision for loan losses | 228 | 143 |
Ending balance | 2,030 | 1,082 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 278 | 121 |
Provision for loan losses | 14 | 116 |
Charge-offs | (45) | |
Ending balance | 292 | 192 |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 2,563 | 1,289 |
Provision for loan losses | (232) | 3 |
Ending balance | 2,331 | 1,292 |
Home Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 2,185 | 1,667 |
Provision for loan losses | (110) | 254 |
Ending balance | 2,075 | 1,921 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 19 | 34 |
Provision for loan losses | (5) | 17 |
Recoveries | 3 | |
Ending balance | $ 17 | $ 51 |
Loans - Schedule of Activity _2
Loans - Schedule of Activity in Allowance for Loan Losses (Parenthetical) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Loans And Leases Receivable Disclosure [Abstract] | ||
Loan loss provision | $ 620,000 | $ 743,000 |
Allowance on accrued interest receivable on loan deferrals | $ 636,000 |
Loans - Schedule of Allowance f
Loans - Schedule of Allowance for Loan Losses and Recorded Investment in Loans (including accrued interest receivable) by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | $ 451 | $ 417 | ||
Allowance for Loan Collectively Evaluated for Impairment | 14,888 | 14,935 | ||
Total | 15,339 | 15,352 | $ 10,748 | $ 10,050 |
Loans Individually Evaluated for Impairment | 662 | 504 | ||
Loans Collectively Evaluated for Impairment | 1,159,328 | 1,103,604 | ||
Total | 1,159,990 | 1,104,108 | ||
Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 8,594 | 8,505 | ||
Total | 8,594 | 8,505 | 6,210 | 6,000 |
Loans Collectively Evaluated for Impairment | 664,672 | 654,235 | ||
Total | 664,672 | 654,235 | ||
SBA Loans-Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 2,030 | 1,802 | ||
Total | 2,030 | 1,802 | 1,082 | 939 |
Loans Collectively Evaluated for Impairment | 140,160 | 136,873 | ||
Total | 140,160 | 136,873 | ||
SBA Loans—Non-Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | 125 | 87 | ||
Allowance for Loan Collectively Evaluated for Impairment | 167 | 191 | ||
Total | 292 | 278 | 192 | 121 |
Loans Individually Evaluated for Impairment | 335 | 174 | ||
Loans Collectively Evaluated for Impairment | 123,876 | 75,477 | ||
Total | 124,211 | 75,651 | ||
Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses Individually Evaluated for Impairment | 326 | 330 | ||
Allowance for Loan Collectively Evaluated for Impairment | 2,005 | 2,233 | ||
Total | 2,331 | 2,563 | 1,292 | 1,289 |
Loans Individually Evaluated for Impairment | 327 | 330 | ||
Loans Collectively Evaluated for Impairment | 103,785 | 107,175 | ||
Total | 104,112 | 107,505 | ||
Home Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 2,075 | 2,185 | ||
Total | 2,075 | 2,185 | 1,921 | 1,667 |
Loans Collectively Evaluated for Impairment | 125,759 | 128,683 | ||
Total | 125,759 | 128,683 | ||
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loan Collectively Evaluated for Impairment | 17 | 19 | ||
Total | 17 | 19 | $ 51 | $ 34 |
Loans Collectively Evaluated for Impairment | 1,076 | 1,161 | ||
Total | $ 1,076 | $ 1,161 |
Loans - Schedule of Recorded In
Loans - Schedule of Recorded Investment of Individually Impaired Loans and Specific Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Recorded Investment, With an allowance recorded | $ 662 | $ 504 |
Allowance Allocated, With an allowance recorded | 451 | 417 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Recorded Investment, With an allowance recorded | 335 | 174 |
Allowance Allocated, With an allowance recorded | 124 | 87 |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Recorded Investment, With an allowance recorded | 327 | 330 |
Allowance Allocated, With an allowance recorded | $ 327 | $ 330 |
Loans - Schedule of Information
Loans - Schedule of Information Related to Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable Impaired [Line Items] | ||
Average Recorded Investment | $ 585 | $ 970 |
Interest Income Recognized | 7 | 13 |
SBA Loans-Non-Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Average Recorded Investment, With no related allowance recorded | 33 | |
Average Recorded Investment, With an allowance recorded | 255 | 126 |
Interest Income Recognized, With an allowance recorded | 4 | 9 |
SBA Loans—Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Average Recorded Investment, With no related allowance recorded | 480 | |
Commercial And Industrial | ||
Financing Receivable Impaired [Line Items] | ||
Average Recorded Investment, With an allowance recorded | 330 | 331 |
Interest Income Recognized, With an allowance recorded | $ 3 | $ 4 |
Loans - Schedule of Recorded _2
Loans - Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due Greater Than 90 Days Still Accruing Interest by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | $ 1,148 | $ 985 |
Total | 1,148 | 985 |
SBA Loans-Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 221 | 56 |
Total | 221 | 56 |
Commercial And Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 327 | 330 |
Total | 327 | 330 |
Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 600 | 599 |
Total | $ 600 | $ 599 |
Loans - Schedule of Aging of Re
Loans - Schedule of Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | $ 821 | $ 599 |
Loans Not Past Due | 1,159,169 | 1,103,509 |
Total | 1,159,990 | 1,104,108 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 664,672 | 654,235 |
Total | 664,672 | 654,235 |
SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 140,160 | 136,873 |
Total | 140,160 | 136,873 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 221 | |
Loans Not Past Due | 123,990 | 75,651 |
Total | 124,211 | 75,651 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 104,112 | 107,505 |
Total | 104,112 | 107,505 |
Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 600 | 599 |
Loans Not Past Due | 125,159 | 128,084 |
Total | 125,759 | 128,683 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 1,076 | 1,161 |
Total | 1,076 | 1,161 |
> 90 Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 821 | 599 |
> 90 Days Pass Due | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | 221 | |
> 90 Days Pass Due | Home Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due Loans | $ 600 | $ 599 |
Loans - Schedule of Loan Deferm
Loans - Schedule of Loan Deferment Status Change by Loan Type (Details) | Mar. 31, 2021USD ($)loan | Dec. 31, 2020USD ($) |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total deferments under the CARES Act, Balance | $ 327,000 | $ 330,000 |
Payment resumed or paid off, Balance | 1,159,990,000 | 1,104,108,000 |
Home Mortgage Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Payment resumed or paid off, Balance | $ 125,759,000 | $ 128,683,000 |
Payment Deferral | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total deferments under the CARES Act, Number of accounts | loan | 185 | |
Payment resumed or paid off, Number of accounts | loan | 171 | |
Remaining deferments, Number of accounts | loan | 14 | |
Total deferments under the CARES Act, Balance | $ 236,787,000 | |
Payment resumed or paid off, Balance | 217,797,000 | |
Remaining deferments, Balance | $ 18,990,000 | |
Payment Deferral | Loans, Excluding Home Mortgage and Consumer Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total deferments under the CARES Act, Number of accounts | loan | 116 | |
Payment resumed or paid off, Number of accounts | loan | 107 | |
Remaining deferments, Number of accounts | loan | 9 | |
Total deferments under the CARES Act, Balance | $ 206,582,000 | |
Payment resumed or paid off, Balance | 190,353,000 | |
Remaining deferments, Balance | $ 16,229,000 | |
Payment Deferral | Home Mortgage Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total deferments under the CARES Act, Number of accounts | loan | 69 | |
Payment resumed or paid off, Number of accounts | loan | 64 | |
Remaining deferments, Number of accounts | loan | 5 | |
Total deferments under the CARES Act, Balance | $ 30,205,000 | |
Payment resumed or paid off, Balance | 27,444,000 | |
Remaining deferments, Balance | $ 2,761,000 |
Loans - Schedule of Risk Catego
Loans - Schedule of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 1,159,990 | $ 1,104,108 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 664,672 | 654,235 |
SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 140,160 | 136,873 |
SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 124,211 | 75,651 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 104,112 | 107,505 |
Home Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 125,759 | 128,683 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,076 | 1,161 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,152,874 | 1,096,248 |
Pass | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 664,672 | 654,235 |
Pass | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 138,861 | 134,815 |
Pass | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 123,826 | 75,453 |
Pass | Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 99,280 | 102,500 |
Pass | Home Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 125,159 | 128,084 |
Pass | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,076 | 1,161 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 530 | 535 |
Special Mention | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 530 | 535 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 6,586 | 7,325 |
Substandard | SBA Loans-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 769 | 1,523 |
Substandard | SBA Loans—Non-Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 385 | 198 |
Substandard | Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 4,832 | 5,005 |
Substandard | Home Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 600 | $ 599 |
Loans - Schedule of Risk Cate_2
Loans - Schedule of Risk Category of Loans by Class of Loans (Parenthetical) (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Substandard | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, net of unsold guarantee | $ 6,400,000 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | |||
Lease renewal term | 5 years | ||
Operating lease, existence of option to terminate [true false] | true | ||
Operating lease, Option to terminate description | Certain lease arrangements contain extension options which are typically around five years. | ||
Operating lease liabilities | $ 8,016,000 | $ 8,429,000 | |
Operating right-of-use assets | 6,443,000 | $ 6,786,000 | |
Operating lease rent expense | $ 638,000 | $ 628,000 | |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Remaining operating lease terms | 4 months | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Remaining operating lease terms | 9 years |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 420 | $ 444 |
Variable lease cost | 218 | 184 |
Total lease cost | $ 638 | $ 628 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating right-of-use assets | $ 6,443 | $ 6,786 | |
Operating lease liabilities | $ 8,016 | $ 8,429 | |
Weighted average remaining lease term - operating leases | 4 years 9 months 18 days | 5 years | |
Weighted average discount rate - operating leases | 2.99% | 2.99% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 505 | $ 500 |
Leases - Summary of Remaining C
Leases - Summary of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 remaining | $ 1,536 | |
2022 | 2,032 | |
2023 | 1,811 | |
2024 | 1,700 | |
2025 | 676 | |
Thereafter | 956 | |
Total lease payments | 8,711 | |
Discount to present value | (695) | |
Total lease liability | $ 8,016 | $ 8,429 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total cost | $ 12,930 | $ 12,778 |
Accumulated depreciation | (8,562) | (8,234) |
Net book value | 4,368 | 4,544 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 6,882 | 6,878 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 3,316 | 3,307 |
Equipment and Others | ||
Property Plant And Equipment [Line Items] | ||
Total cost | $ 2,732 | $ 2,593 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 328,000 | $ 329,000 |
Servicing Assets - Additional I
Servicing Assets - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Servicing Assets At Amortized Value [Line Items] | |||
Servicing assets | $ 7,492,000 | $ 7,360,000 | |
Valuation allowance against carrying value of servicing assets | 0 | $ 0 | |
Servicing asset at fair value, amount | $ 9,300,000 | $ 8,000,000 | |
Minimum | |||
Servicing Assets At Amortized Value [Line Items] | |||
Fair value of servicing assets, discount rates | 5.40% | 5.70% | |
Fair value of servicing assets, prepayment speed | 14.30% | 15.00% | |
Maximum | |||
Servicing Assets At Amortized Value [Line Items] | |||
Fair value of servicing assets, discount rates | 11.90% | 11.90% | |
Fair value of servicing assets, prepayment speed | 14.40% | 15.10% |
Servicing Assets - Schedule of
Servicing Assets - Schedule of Activity for Loan Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Servicing Asset [Abstract] | ||
Beginning balance | $ 7,360 | $ 7,024 |
Additions | 570 | 406 |
Amortized to expense | (438) | (467) |
Ending balance | $ 7,492 | $ 6,963 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Time Deposits [Line Items] | ||
Time deposits greater than $250,000 | $ 190,960 | $ 200,210 |
Principal Officers, Directors, and Affiliates | ||
Time Deposits [Line Items] | ||
Deposits from principal officers, directors, and their affiliates | $ 1,900 | $ 1,500 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Deposits [Abstract] | |
2021 remaining | $ 272,931 |
2022 | 83,228 |
2023 | 1,694 |
2024 | 789 |
2025 | 582 |
Thereafter | 33 |
Total | $ 359,257 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Federal home loan bank borrowings | $ 5,000,000 | $ 5,000,000 |
Letter of credit | 67,000,000 | |
Collateral pledged | $ 914,000,000 |
Borrowing Arrangements - Summar
Borrowing Arrangements - Summary of Borrowings Available to the Company from Institutions (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 501,781 |
Federal Home Loan Bank—San Francisco | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 269,708 |
Federal Reserve Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 132,073 |
Pacific Coast Bankers Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 50,000 |
Zions Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 25,000 |
First Horizon Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 25,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 2,058,000 | $ 1,163,000 |
Effective income tax rate | 28.80% | 26.10% |
Unrealized tax benefits | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Distribution of Undisbursed Loan Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | $ 118,454 | $ 86,504 |
Commitments to Extend Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | 108,887 | 75,740 |
Standby Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | 8,586 | 9,212 |
Commercial Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Undisbursed loan commitments | $ 981 | $ 1,552 |
Commitments and Contingencies_2
Commitments and Contingencies - Balance and Total Unfunded Commitments Related to Investment in Low Income Housing Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Investments in low income housing partnerships | $ 4,806 | $ 4,932 |
Unfunded commitments to fund investments for low income housing partnerships | $ 1,965 | $ 2,154 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Recognized amortization expense | $ 127,000 | $ 54,000 |
Recognized tax credits and other benefits | $ 114,000 | $ 50,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation expense | $ 131,000 | $ 358,000 | ||
2005 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation shares authorized under stock option plans | 770,000 | |||
Percent of the fair value options granted | 100.00% | |||
'Shares available for future grant | 0 | |||
Weighted average remaining contractual term stock options outstanding | 2 years 5 months 26 days | |||
Weighted average remaining contractual life for options exercisable | 2 years 5 months 26 days | |||
2005 Plan | Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Stock options, when granted, expiration period | 10 years | |||
2010 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation shares authorized under stock option plans | 0 | 2,500,000 | 1,350,000 | |
Percent of the fair value options granted | 100.00% | |||
Weighted average remaining contractual term stock options outstanding | 3 years 3 days | |||
Weighted average remaining contractual life for options exercisable | 3 years 3 days | |||
Number of options outstanding, Granted | 0 | 0 | ||
Unrecognized compensation costs related to unvested stock options | $ 235,000 | |||
Unrecognized compensation costs weighted average period | 6 months 7 days | |||
2010 Plan | Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Stock options, when granted, expiration period | 10 years | |||
2010 Plan | Restricted Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock awards granted | 0 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock-based Compensation Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
2005 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options outstanding, Beginning of period | 100,000 | |
Number of options outstanding, Exercised | (30,000) | |
Number of options outstanding, Ending of period | 70,000 | |
Number of options outstanding, Full vested and expected to vest | 70,000 | |
Number of options outstanding, Vested | 70,000 | |
Weighted average exercise price, Outstanding beginning | $ 5.77 | |
Weighted average exercise price, Outstanding ending | 6.30 | |
Weighted average exercise price, Full vested and expected to vest | 6.30 | |
Weighted average exercise price, Vested | $ 6.30 | |
Aggregate intrinsic value, Outstanding | $ 295 | |
Aggregate intrinsic value, Fully vested and expected to vest | 295 | |
Aggregate intrinsic value, Vested | $ 295 | |
2010 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options outstanding, Beginning of period | 220,000 | |
Number of options outstanding, Granted | 0 | 0 |
Number of options outstanding, Exercised | (10,000) | |
Number of options outstanding, Ending of period | 210,000 | |
Number of options outstanding, Full vested and expected to vest | 202,500 | |
Number of options outstanding, Vested | 180,000 | |
Weighted average exercise price, Outstanding beginning | $ 7.75 | |
Weighted average exercise price, Exercised | 2.53 | |
Weighted average exercise price, Outstanding ending | 8 | |
Weighted average exercise price, Full vested and expected to vest | 8 | |
Weighted average exercise price, Vested | $ 8 | |
Aggregate intrinsic value, Outstanding | $ 529 | |
Aggregate intrinsic value, Fully vested and expected to vest | 510 | |
Aggregate intrinsic value, Vested | $ 454 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Information Related to Stock Option Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Cash received from option exercises | $ 25 | $ 305 |
2005 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Intrinsic value of options exercised | 132 | 370 |
Cash received from option exercises | 63 | |
Tax benefit realized from option exercised | 20 | 17 |
2010 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Intrinsic value of options exercised | 86 | 519 |
Cash received from option exercises | $ 25 | 242 |
Tax benefit realized from option exercised | $ 134 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Changes in Non-vested Restricted Stock Awards (Details) - 2010 Plan - Restricted Stock Awards $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares issued, Non-vested beginning of period | 154,500 |
Restricted stock awards granted | 0 |
Shares issued, Non-vested end of period | 154,500 |
Weighted average grant date fair value, Non-vested beginning of period | $ / shares | $ 11.66 |
Weighted average grant date fair value, Non-vested end of period | $ / shares | $ 11.66 |
Aggregate intrinsic value, Non-vested end of year | $ | $ 1,625 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - 401 (k) Plan - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Eligibility age of employees for plan | 18 years | |
Employee minimum service period | 90 days | |
Employer contribution amount | $ 174,000 | $ 180,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Service charges on deposits | $ 274,000 | $ 368,000 |
Noninterest income | 2,966,000 | 2,296,000 |
Service Fees and Transaction-Based Fees Income | ||
Disaggregation Of Revenue [Line Items] | ||
Service charges on deposits | $ 227,000 | $ 152,000 |
Percentage on revenue | 1.40% | 1.10% |
Overdraft and NSF Fees Income | ||
Disaggregation Of Revenue [Line Items] | ||
Service charges on deposits | $ 47,000 | $ 215,000 |
Percentage on revenue | 0.30% | 1.60% |
Wire Transfer Fee Income | ||
Disaggregation Of Revenue [Line Items] | ||
Percentage on revenue | 0.50% | 0.60% |
Noninterest income | $ 81,000 | $ 63,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other investments: | ||
Mutual fund - CRA qualified | $ 3,720 | $ 3,773 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
U.S. Government sponsored agency securities | 1,001 | 5,001 |
Mortgage-backed securities - residential | 25,428 | 15,641 |
Collateralized mortgage obligations | 75,984 | 35,907 |
Other investments: | ||
Mutual fund - CRA qualified | 3,720 | 3,628 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Other investments: | ||
Mutual fund - CRA qualified | 3,720 | 3,628 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
U.S. Government sponsored agency securities | 1,001 | 5,001 |
Mortgage-backed securities - residential | 25,428 | 15,641 |
Collateralized mortgage obligations | $ 75,984 | $ 35,907 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value assets transfers between level 1 to level 2 | $ 0 | $ 0 | |
Fair value liabilities transfers between level 1 to level 2 | 0 | $ 0 | |
Fair Value, Non-recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | 0 | $ 0 | |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Cash and cash equivalents | $ 127,524 | $ 106,405 |
Loans held for sale | 31,238 | 26,659 |
Loans receivable, net | 1,156,500 | 1,109,217 |
Accrued interest receivable, net | 3,096 | 3,985 |
Financial Liabilities: | ||
Deposit | 1,285,750 | 1,200,789 |
FHLB Advances | 5,000 | 5,000 |
Accrued interest payable | 622 | 1,021 |
Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 127,524 | 106,405 |
Loans held for sale | 28,575 | 26,659 |
Loans receivable, net | 1,140,533 | 1,084,384 |
Accrued interest receivable, net | 3,096 | 3,985 |
Other investments: | ||
FHLB and PCBB stock | 6,233 | 6,233 |
Financial Liabilities: | ||
Deposit | 1,285,390 | 1,200,090 |
FHLB Advances | 5,000 | 5,000 |
Accrued interest payable | 622 | 1,021 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 127,524 | 106,405 |
Accrued interest receivable, net | 8 | 7 |
Level 2 | ||
Financial Assets: | ||
Loans held for sale | 31,238 | 26,659 |
Accrued interest receivable, net | 249 | 249 |
Financial Liabilities: | ||
Deposit | 1,285,750 | 1,200,789 |
FHLB Advances | 5,000 | 5,000 |
Accrued interest payable | 622 | 1,021 |
Level 3 | ||
Financial Assets: | ||
Loans receivable, net | 1,156,500 | 1,109,217 |
Accrued interest receivable, net | $ 2,839 | $ 3,729 |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |
Capital conservation buffer | 2.50% |
Capital conservation buffer description | the capital conservation buffers for the Company is 2.50% |
Minimum | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |
Capital required to be well capitalized | $ 3 |
Regulatory Capital Matters - Su
Regulatory Capital Matters - Summary of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer (Details) $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 159,626 | $ 155,287 |
Tier 1 capital (to risk-weighted assets), Actual Amount | 146,319 | 142,147 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount | 146,319 | 142,147 |
Tier 1 capital (to average assets), Actual Amount | $ 146,319 | $ 142,147 |
Total capital (to risk-weighted assets), Actual Ratio | 0.1504 | 0.1481 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 0.1379 | 0.1356 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio | 0.1379 | 0.1356 |
Tier 1 capital (to average assets), Actual Ratio | 0.1038 | 0.1055 |
Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 156,697 | $ 152,232 |
Tier 1 capital (to risk-weighted assets), Actual Amount | 143,391 | 139,092 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount | 143,391 | 139,092 |
Tier 1 capital (to average assets), Actual Amount | $ 143,391 | $ 139,092 |
Total capital (to risk-weighted assets), Actual Ratio | 0.1477 | 0.1452 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 0.1351 | 0.1327 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio | 0.1351 | 0.1327 |
Tier 1 capital (to average assets), Actual Ratio | 0.1017 | 0.1032 |
Total capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | $ 84,884 | $ 83,859 |
Tier 1 capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | 63,663 | 62,894 |
Common equity Tier 1 capital (to risk-weighted assets), Amount, Required for Capital Adequacy Purposes | 47,747 | 47,171 |
Tier 1 capital (to average assets), Amount, Required for Capital Adequacy Purposes | $ 56,376 | $ 53,915 |
Total capital (to risk-weighted assets), Ratio, Required for Capital Adequacy Purposes | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets), Ratio, Required for Capital Adequacy Purposes | 0.0600 | 0.0600 |
Common equity Tier 1 capital (to risk-weighted assets), Ratio, Required for Capital Adequacy Purposes | 0.0450 | 0.0450 |
Tier 1 capital (to average assets), Ratio, Required for Capital Adequacy Purposes | 0.0400 | 0.0400 |
Capital required to be well capitalized | $ 106,106 | $ 104,824 |
Tier 1 capital (to risk-weighted assets), Amount, Minimum To be Considered "Well Capitalized" | 84,884 | 83,859 |
Common equity Tier 1 capital (to risk-weighted assets), Amount, Minimum To be Considered "Well Capitalized" | 68,969 | 68,136 |
Tier 1 capital (to average assets), Amount, Minimum To be Considered "Well Capitalized" | $ 70,470 | $ 67,393 |
Total capital (to risk-weighted assets), Ratio, Minimum To be Considered "Well Capitalized" | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets), Ratio, Minimum To be Considered "Well Capitalized" | 0.0800 | 0.0800 |
Common equity Tier 1 capital (to risk-weighted assets), Ratio, Minimum To be Considered "Well Capitalized" | 0.0650 | 0.0650 |
Tier 1 capital (to average assets), Ratio, Minimum To be Considered "Well Capitalized" | 0.0500 | 0.0500 |
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, 2021 | Mar. 31, 2020 | |
Basic | ||
Net income | $ 5,077 | $ 3,299 |
Undistributed earnings allocated to participating securities | (52) | (62) |
Net income allocated to common shares | $ 5,025 | $ 3,237 |
Weighted average common shares outstanding | 15,022,876 | 15,486,549 |
Basic earnings per common share | $ 0.33 | $ 0.21 |
Diluted | ||
Net income allocated to common shares | $ 5,025 | $ 3,237 |
Weighted average common shares outstanding | 15,022,876 | 15,486,549 |
Add: Dilutive effects of assumed exercises of stock options | 46,568 | 99,706 |
Average shares and dilutive potential common shares | 15,069,444 | 15,586,255 |
Diluted earnings per common share | $ 0.33 | $ 0.21 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive shares of common stock excluded from computation of earnings per share | 0 | 0 |