Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Registrant Name | California BanCorp | |
Entity Central Index Key | 0001752036 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 8,149,678 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CALB | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | CA | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Address, Country | CA |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS: | ||
Cash and due from banks | $ 23,339 | $ 19,579 |
Federal funds sold | 480,555 | 94,763 |
Total cash and cash equivalents | 503,894 | 114,342 |
Investment securities, available for sale | 50,906 | 28,555 |
Loans, net of allowance for losses of $13,385 and $11,075 at September 30, 2020 and December 31, 2019, respectively | 1,340,725 | 941,132 |
Premises and equipment, net | 5,933 | 3,668 |
Bank owned life insurance (BOLI) | 23,577 | 22,316 |
Goodwill and other intangible assets | 7,564 | 7,595 |
Accrued interest receivable and other assets | 40,152 | 34,426 |
Total assets | 1,972,751 | 1,152,034 |
Deposits | ||
Non-interest bearing | 633,726 | 387,267 |
Interest bearing | 803,506 | 600,969 |
Total deposits | 1,437,232 | 988,236 |
Other borrowings | 352,703 | 10,000 |
Junior Subordinated debt securities | 24,990 | 4,977 |
Accrued interest payable and other liabilities | 23,231 | 18,565 |
Total liabilities | 1,838,156 | 1,021,778 |
Commitments and Contingencies (Note 5) | ||
Shareholders' equity | ||
Common stock, no par value; 40,000,000 shares authorized; 8,149,678 and 8,092,966 issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 107,776 | 106,427 |
Retained earnings | 26,036 | 23,518 |
Accumulated other comprehensive income, net of taxes | 783 | 311 |
Total shareholders' equity | 134,595 | 130,256 |
Total liabilities and shareholders' equity | $ 1,972,751 | $ 1,152,034 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for losses | $ 13,385 | $ 11,075 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 8,149,678 | 8,092,966 |
Common stock, shares outstanding | 8,149,678 | 8,092,966 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income | ||||
Loans | $ 12,849 | $ 12,087 | $ 37,096 | $ 34,784 |
Federal funds sold | 117 | 180 | 554 | 556 |
Investment securities | 222 | 290 | 621 | 933 |
Total interest income | 13,188 | 12,557 | 38,271 | 36,273 |
Interest expense | ||||
Deposits | 1,467 | 1,928 | 4,981 | 5,112 |
Borrowings and subordinated debt | 533 | 196 | 1,136 | 806 |
Total interest expense | 2,000 | 2,124 | 6,117 | 5,918 |
Net interest income | 11,188 | 10,433 | 32,154 | 30,355 |
Provision for credit losses | 850 | 500 | 4,180 | 1,326 |
Net interest income after provision for credit losses | 10,338 | 9,933 | 27,974 | 29,029 |
Non-interest income | ||||
Service charges and other fees | 779 | 762 | 2,287 | 2,151 |
Gain on the sale of SBA loans | 212 | 235 | ||
Other | 249 | 287 | 809 | 714 |
Total non-interest income | 1,028 | 1,261 | 3,096 | 3,100 |
Non-interest expense | ||||
Salaries and benefits | 6,452 | 5,567 | 15,051 | 14,905 |
Premises and equipment | 1,359 | 826 | 3,630 | 2,343 |
Professional fees | 634 | 396 | 3,013 | 1,703 |
Data processing | 734 | 525 | 1,796 | 1,365 |
Other | 1,366 | 1,085 | 3,903 | 3,081 |
Total non-interest expense | 10,545 | 8,399 | 27,393 | 23,397 |
Income before provision for income taxes | 821 | 2,795 | 3,677 | 8,732 |
Provision for income taxes | 326 | 791 | 1,159 | 2,310 |
Net income | $ 495 | $ 2,004 | $ 2,518 | $ 6,422 |
Earnings per common share | ||||
Basic | $ 0.06 | $ 0.25 | $ 0.31 | $ 0.80 |
Diluted | $ 0.06 | $ 0.25 | $ 0.31 | $ 0.79 |
Average common shares outstanding | 8,141,807 | 8,051,729 | 8,124,387 | 8,040,196 |
Average common and equivalent shares outstanding | 8,169,334 | 8,135,337 | 8,159,521 | 8,120,376 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 495 | $ 2,004 | $ 2,518 | $ 6,422 |
Other comprehensive income | ||||
Unrealized (losses) gains on securities available for sale | (143) | 4 | 602 | 501 |
Reclassification adjustment for realized loss on securities available for sale | 70 | |||
Tax effect | 43 | (1) | (200) | (148) |
Total other comprehensive (loss) income | (100) | 3 | 472 | 353 |
Total comprehensive income | $ 395 | $ 2,007 | $ 2,990 | $ 6,775 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance (in shares) at Dec. 31, 2018 | 7,993,908 | |||
Balance at Dec. 31, 2018 | $ 121,079 | $ 104,561 | $ 16,517 | $ 1 |
Stock awards issued and related compensation expense, shares | 12,638 | |||
Stock awards issued and related compensation expense | 172 | $ 172 | ||
Stock options exercised , shares | 40,008 | |||
Stock options exercised | 372 | $ 372 | ||
Net income | 1,868 | 1,868 | ||
Other comprehensive income | 166 | 166 | ||
Balance (in shares) at Mar. 31, 2019 | 8,046,554 | |||
Balance at Mar. 31, 2019 | 123,657 | $ 105,105 | 18,385 | 167 |
Balance (in shares) at Dec. 31, 2018 | 7,993,908 | |||
Balance at Dec. 31, 2018 | 121,079 | $ 104,561 | 16,517 | 1 |
Net income | 6,422 | |||
Other comprehensive income | 353 | |||
Balance (in shares) at Sep. 30, 2019 | 8,052,549 | |||
Balance at Sep. 30, 2019 | 129,002 | $ 105,709 | 22,939 | 354 |
Balance (in shares) at Mar. 31, 2019 | 8,046,554 | |||
Balance at Mar. 31, 2019 | 123,657 | $ 105,105 | 18,385 | 167 |
Stock awards issued and related compensation expense, shares | 3,132 | |||
Stock awards issued and related compensation expense | 229 | $ 229 | ||
Stock options exercised , shares | 660 | |||
Stock options exercised | 20 | $ 20 | ||
Net income | 2,550 | 2,550 | ||
Other comprehensive income | 184 | 184 | ||
Balance (in shares) at Jun. 30, 2019 | 8,047,214 | |||
Balance at Jun. 30, 2019 | 126,640 | $ 105,354 | 20,935 | 351 |
Stock awards issued and related compensation expense | 347 | $ 347 | ||
Stock options exercised , shares | 2,203 | |||
Stock options exercised | 8 | $ 8 | ||
Net income | 2,004 | 2,004 | ||
Other comprehensive income | 3 | 3 | ||
Balance (in shares) at Sep. 30, 2019 | 8,052,549 | |||
Balance at Sep. 30, 2019 | 129,002 | $ 105,709 | 22,939 | 354 |
Balance (in shares) at Dec. 31, 2019 | 8,092,966 | |||
Balance at Dec. 31, 2019 | 130,256 | $ 106,427 | 23,518 | 311 |
Stock awards issued and related compensation expense, shares | 25,215 | |||
Stock awards issued and related compensation expense | 413 | $ 413 | ||
Shares withheld to pay taxes on stock based compensation , shares | (7,550) | |||
Shares withheld to pay taxes on stock based compensation | (133) | $ (133) | ||
Stock options exercised , shares | 11,217 | |||
Stock options exercised | 83 | $ 83 | ||
Net income | 473 | 473 | ||
Other comprehensive income | 101 | 101 | ||
Balance (in shares) at Mar. 31, 2020 | 8,121,848 | |||
Balance at Mar. 31, 2020 | 131,193 | $ 106,790 | 23,991 | 412 |
Balance (in shares) at Dec. 31, 2019 | 8,092,966 | |||
Balance at Dec. 31, 2019 | 130,256 | $ 106,427 | 23,518 | 311 |
Net income | 2,518 | |||
Other comprehensive income | 472 | |||
Balance (in shares) at Sep. 30, 2020 | 8,149,678 | |||
Balance at Sep. 30, 2020 | 134,595 | $ 107,776 | 26,036 | 783 |
Balance (in shares) at Mar. 31, 2020 | 8,121,848 | |||
Balance at Mar. 31, 2020 | 131,193 | $ 106,790 | 23,991 | 412 |
Stock awards issued and related compensation expense, shares | 1,428 | |||
Stock awards issued and related compensation expense | 314 | $ 314 | ||
Stock options exercised , shares | 10,181 | |||
Stock options exercised | 137 | $ 137 | ||
Net income | 1,550 | 1,550 | ||
Other comprehensive income | 471 | 471 | ||
Balance (in shares) at Jun. 30, 2020 | 8,133,457 | |||
Balance at Jun. 30, 2020 | 133,665 | $ 107,241 | 25,541 | 883 |
Stock awards issued and related compensation expense, shares | 12,483 | |||
Stock awards issued and related compensation expense | 525 | $ 525 | ||
Stock options exercised , shares | 3,738 | |||
Stock options exercised | 10 | $ 10 | ||
Net income | 495 | 495 | ||
Other comprehensive income | (100) | (100) | ||
Balance (in shares) at Sep. 30, 2020 | 8,149,678 | |||
Balance at Sep. 30, 2020 | $ 134,595 | $ 107,776 | $ 26,036 | $ 783 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 2,518 | $ 6,422 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 4,180 | 1,326 |
Depreciation | 996 | 540 |
Deferred loan fees, net | 3,823 | 101 |
Accretion on discount of purchased loans, net | (216) | (289) |
Stock based compensation, net | 1,119 | 748 |
Increase in cash surrender value of life insurance | (440) | (392) |
Discount on retained portion of sold loans, net | (176) | 40 |
Loss on sale of investment securities, net | 70 | |
Gain on sale of loans, net | (235) | |
Increase in accrued interest receivable and other assets | (2,340) | (3,581) |
Decrease in accrued interest payable and other liabilities | 2,929 | 2,653 |
Net cash from operating activities | 12,463 | 7,333 |
Cash flows from investing activities: | ||
Purchase of investment securities | (35,403) | |
Proceeds from sales of investment securities | 7,729 | |
Proceeds from principal payments on investment securities | 5,425 | 7,786 |
Purchase of loans | (24,289) | |
Net increase in loans | (382,916) | (90,068) |
Purchase of low income tax credit investments | (941) | (948) |
Purchase of Federal Home Loan Bank stock | (363) | (866) |
Purchase of premises and equipment | (3,261) | (380) |
Purchase of bank-owned life insurance policies | (821) | (3,958) |
Net cash used in investing activities | (434,840) | (88,434) |
Cash flows from financing activities: | ||
Net increase (decrease) in customer deposits | 448,996 | 49,656 |
Proceeds from short term and overnight borrowings | 342,703 | 20,000 |
Proceeds from issuance of subordinated debt | 20,000 | |
Proceeds from exercised stock options | 230 | 400 |
Net cash provided by financing activities | 811,929 | 70,056 |
Increase (decrease) in cash and cash equivalents | 389,552 | (11,045) |
Cash and cash equivalents, beginning of period | 114,342 | 78,705 |
Cash and cash equivalents, end of period | 503,894 | 67,660 |
Supplemental disclosure of cash flow information: | ||
Transfer of SBA loans to held-for-sale from loan portfolio | 3,068 | |
Recording of right to use assets and operating lease liabilities | 2,903 | 6,725 |
Cash paid during the year for: | ||
Interest | 10,097 | 5,738 |
Income taxes | $ 164 | $ 1,640 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 1. NATURE OF OPERATIONS Organization California BanCorp (the “Company”, or ‘we”), a California corporation headquartered in Oakland, California, is the bank holding company for its wholly-owned subsidiary California Bank of Commerce (the “Bank”). The Bank has 2 full service branches in California located in Contra Costa County and Santa Clara County and 4 loan production offices in California located in Alameda County, Contra Costa County, Sacramento County, and Santa Clara County. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q 10-K The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2020. The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry. Subsequent Events Management has reviewed all events through the date the unaudited consolidated financial statements were filed with the SEC. See Note 7 to the unaudited consolidated financial statements for additional information regarding the COVID-19 pandemic. Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited consolidated financial statements and the disclosures provided, and actual results could differ. The estimates utilized to determine the appropriate allowance for loan losses at September 30, 2020 may be materially different from actual results due to the COVID-19 pandemic. See Note 7 to the unaudited consolidated financial statements for additional information regarding the COVID-19 pandemic. Reclassifications Certain prior balances in the unaudited consolidated financial statements may have been reclassified to conform to current year presentation. These reclassifications had no effect on prior year net income or shareholders’ equity. Specifically, we have modified how we disclose our loan segments to be purpose-based versus collateral-based (as previously disclosed) so that there is more transparency to our SBA loan portfolio which now consists largely of Paycheck Protection Program loans under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). As a result, prior balances for both the current and prior year in the unaudited consolidated statements have been reclassified. These reclassifications had no effect on current or prior year net income, shareholders’ equity, total gross loan balances, or the overall balance of the allowance for credit losses. Earnings Per Share (“EPS”) Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the period. In determining the weighted average number of shares outstanding, vested restricted stock units are included. Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of common shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and units, calculated using the treasury stock method. Three months ended Nine months ended (Dollars in thousands, except per share data) 2020 2019 2020 2019 Net income available to common shareholders $ 495 $ 2,004 $ 2,518 $ 6,422 Weighted average basic common shares outstanding 8,141,807 8,051,729 8,124,387 8,040,196 Add: dilutive potential common shares 27,527 83,608 35,134 80,180 Weighted average diluted common shares outstanding 8,169,334 8,135,337 8,159,521 8,120,376 Basic earnings per share $ 0.06 $ 0.25 $ 0.31 $ 0.80 Diluted earnings per share $ 0.06 $ 0.25 $ 0.31 $ 0.79 New Financial Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued “Simplifying the Accounting for Income Taxes (Topic 740)” (“ASU 2019-12”) 2019-12 In June 2016, the FASB issued ASU 2016-13, held-to off-balance |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 2. INVESTMENT SECURITIES The following table summarizes the amortized cost and estimated fair value of securities available for sale at September 30, 2020 and December 31, 2019. Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) At September 30, 2020: Mortgage backed securities $ 31,815 $ 881 $ (47 ) $ 32,649 Government agencies 2,444 — (5 ) 2,439 Corporate bonds 15,535 323 (40 ) 15,818 Total available for sale securities $ 49,794 $ 1,204 $ (92 ) $ 50,906 At December 31, 2019: Mortgage backed securities $ 20,291 $ 436 $ (5 ) $ 20,722 Government agencies 7,824 9 — 7,833 Corporate bonds — — — — Total available for sale securities $ 28,115 $ 445 $ (5 ) $ 28,555 Net unrealized gains on available for sale investment securities totaling $1.1 million and $440,000 were recorded, net of deferred tax assets, as accumulated other comprehensive income within shareholders’ equity at September 30, 2020 and December 31, 2019, respectively. The Company purchased 8 securities for $35.4 million and sold 6 available for sale securities for total proceeds of $7.7 million during the nine months ended September 30, 2020. The Company did not purchase or sell available for sale investment securities during the nine months ended September 30, 2019. The following table summarizes securities with unrealized losses at September 30, 2020 and December 31, 2019 aggregated by major security type and length of time in a continuous unrealized loss position. Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses At September 30, 2020: Mortgage backed securities $ 5,215 $ (47 ) $ — $ — $ 5,215 $ (47 ) Government agencies 2,444 (5 ) — — 2,444 (5 ) Corporate bonds 5,000 (40 ) — — 5,000 (40 ) Total available for sale securities $ 12,659 $ (92 ) $ — $ — $ 12,659 $ (92 ) At December 31, 2019: Mortgage backed securities $ 481 $ (5 ) $ — $ — $ 481 $ (5 ) Government agencies 1,598 — — — 1,598 — Corporate bonds — — — — — — Total available for sale securities $ 2,079 $ (5) $ — $ — $ 2,079 $ (5) At September 30, 2020 the Company’s investment security portfolio consisted of 23 securities, three of which (government agency securities) were in an unrealized loss position at quarter end. Management believes that changes in the market value since purchase are primarily attributable to changes in interest rates and relative illiquidity. Because the Company does not intend to sell and is unlikely to be required to sell until a recovery of fair value, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2020. At December 31, 2019, the Company’s investment security portfolio consisted of 21 securities, two of which were in an unrealized loss position at year end. One security was a government agency security issued by the Small Business Administration. One security was a Mortgage-Backed-Security. Management believes that changes in the market value of its Mortgage-Backed-Securities since purchase are primarily attributable to changes in interest rates and relative illiquidity and not credit quality. Because the Company does not intend to sell and unlikely to be required to sell until a recovery of fair value, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at December 31, 2019. The following table summarizes the scheduled maturities of available for sale investment securities as of September 30, 2020. September 30, 2020 Amortized Fair (Dollars in thousands) Cost Value Available for sale securities: Less that one year $ — $ — One to five years — — Five to ten years — — Beyond ten years 15,535 15,818 Securities not due at a single maturity date 34,259 35,088 Total available for sale securities $ 49,794 $ 50,906 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. As such, mortgage backed securities and government agencies are not included in the maturity categories above and instead are shown separately as securities not due at a single maturity date. |
Loans and Allowance For Loan Lo
Loans and Allowance For Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and Allowance For Loan Losses | 3. LOANS AND ALLOWANCE FOR LOAN LOSSES Outstanding loans as of September 30, 2020 and December 31, 2019 are summarized below. Certain loans have been pledged to secure borrowing arrangements (see Note 4). Additionally, SBA loans include loans funded under the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was enacted as a result of the COVID-19 pandemic (see Note 7). September 30, December 31, (Dollars in thousands) 2020 2019 Commercial and industrial 379,400 389,746 Real estate - other 539,541 502,929 Real estate - construction and land 36,596 42,519 SBA 373,921 12,830 Other 25,706 1,628 Total loans, gross 1,355,164 949,652 Deferred loan origination (fees)/costs, net (1,054 ) 2,555 Allowance for loan losses (13,385 ) (11,075 ) Total loans, net 1,340,725 941,132 The following table reflects the loan portfolio allocated by management’s internal risk ratings at September 30, 2020 and December 31, 2019. Commercial Real Estate and Real Estate Construction (Dollars in thousands) Industrial Other and Land SBA Other Total As of September 30, 2020 Grade: Pass $ 361,080 $ 529,404 $ 34,052 $ 371,459 $ 25,706 $ 1,321,701 Special Mention 11,677 5,658 766 1,023 — 19,124 Substandard 6,643 4,479 1,778 1,439 — 14,339 Total $ 379,400 $ 539,541 $ 36,596 $ 373,921 $ 25,706 $ 1,355,164 As of December 31, 2019 Grade: Pass $ 378,327 $ 494,314 $ 40,731 $ 10,736 $ 1,628 $ 925,736 Special Mention 6,894 7,928 1,788 1,655 — 18,265 Substandard 4,525 687 — 439 — 5,651 Total $ 389,746 $ 502,929 $ 42,519 $ 12,830 $ 1,628 $ 949,652 The following table reflects an aging analysis of the loan portfolio by the time past due at September 30, 2020 and December 31, 2019. (Dollars in thousands) 30 Days 60 Days 90+ Days Non-Accrual Current Total As of September 30, 2020 Commercial and industrial $ — $ 3,444 $ — $ 346 $ 375,610 $ 379,400 Real estate - other 628 — — — 538,913 539,541 Real estate - construction and land — — — — 36,596 36,596 SBA — — — 234 373,687 373,921 Other — — — — 25,706 25,706 Total loans, gross $ 628 $ 3,444 $ — $ 580 $ 1,350,512 $ 1,355,164 As of December 31, 2019 Commercial and industrial $ — $ 1,440 $ — $ 2,409 $ 385,897 $ 389,746 Real estate - other — — — — 502,929 502,929 Real estate- construction and land — — — — 42,519 42,519 SBA — — — 344 12,486 12,830 Other — — — — 1,628 1,628 Total loans, gross $ — $ 1,440 $ — $ 2,753 $ 945,459 $ 949,652 The following table reflects the impairment methodology applied to gross loans by portfolio segment and the related allowance for loan losses as of September 30, 2020 and December 31, 2019. (Dollars in thousands) Commercial Real Estate Real Estate SBA Other Total As of September 30, 2020 Gross loans: Loans individually evaluated for impairment $ 2,508 $ — $ — $ 234 $ — $ 2,742 Loans collectively evaluated for impairment 376,892 539,541 36,596 373,687 25,706 1,352,422 Total gross loans $ 379,400 $ 539,541 $ 36,596 $ 373,921 $ 25,706 $ 1,355,164 Allowance for loan losses: Loans individually evaluated for impairment $ 99 $ — $ — $ — $ — $ 99 Loans collectively evaluated for impairment 8,535 3,608 676 445 22 13,286 Total allowance for loan losses $ 8,634 $ 3,608 $ 676 $ 445 $ 22 $ 13,385 As of December 31, 2019 Gross loans: Loans individually evaluated for impairment $ 4,572 $ 687 $ — $ 344 $ — $ 5,603 Loans collectively evaluated for impairment 385,174 502,242 42,519 12,486 1,628 944,049 Total loans $ 389,746 $ 502,929 $ 42,519 $ 12,830 $ 1,628 $ 949,652 Allowance for loan losses: Loans individually evaluated for impairment $ 600 $ — $ — $ 50 $ — $ 650 Loans collectively evaluated for impairment 6,108 3,281 1,022 6 8 10,425 Total allowance for loan losses $ 6,708 $ 3,281 $ 1,022 $ 56 $ 8 $ 11,075 The following table reflects information related to impaired loans as of September 30, 2020 and December 31, 2019. Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized As of September 30, 2020 With no related allowance recorded: Commercial and industrial $ 346 $ 1,480 $ — $ 1,480 $ — SBA $ 234 $ 479 $ — $ 1,921 $ — With an allowance recorded: Commercial and industrial $ 2,162 $ 2,162 $ 99 $ 2,338 $ 119 Total: Commercial and industrial $ 2,508 $ 3,642 $ 99 $ 3,818 $ 119 SBA $ 234 $ 479 $ — $ 1,921 $ — As of December 31, 2019 With no related allowance recorded: Commercial and industrial $ 1,846 $ 1,860 $ — $ 1,282 $ 68 Real estate - other $ 687 $ 687 $ — $ 700 $ 52 SBA $ 294 $ 294 $ — $ 1,723 $ — With an allowance recorded: Commercial and industrial $ 2,726 $ 4,623 $ 600 $ 4,620 $ 56 SBA $ 50 $ 200 $ 50 $ 203 $ 15 Total: Commercial and industrial $ 4,572 $ 6,483 $ 600 $ 5,902 $ 124 Real estate - other $ 687 $ 687 $ — $ 700 $ 52 SBA $ 344 $ 494 $ 50 $ 1,926 $ 15 The following table reflects the changes in, and allocation of, the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2020 and September 30, 2019. Commercial Real Estate and Real Estate Construction (Dollars in thousands) Industrial Other and Land SBA Other Total Three months ended September 30, 2020 Beginning balance $ 7,851 $ 3,332 $ 956 $ 366 $ 19 $ 12,524 Provision for loan losses 772 276 (280 ) 79 3 850 Charge-offs — — — — — — Recoveries 11 — — — — 11 Ending balance $ 8,634 $ 3,608 $ 676 $ 445 $ 22 $ 13,385 Three months ended September 30, 2019 Beginning balance $ 7,654 $ 2,688 $ 945 $ 199 $ 15 $ 11,501 Provision for loan losses 208 418 (68 ) (58 ) — 500 Charge-offs (1,604 ) — — — — (1,604 ) Recoveries 15 — — — — 15 Ending balance $ 6,273 $ 3,106 $ 877 $ 141 $ 15 $ 10,412 Nine months ended September 30, 2020 Beginning balance $ 6,708 $ 3,281 $ 1,022 $ 50 $ 14 $ 11,075 Provision for loan losses 3,688 327 (346 ) 503 8 4,180 Charge-offs (1,868 ) — — (108 ) — (1,976 ) Recoveries 106 — — — — 106 Ending balance $ 8,634 $ 3,608 $ 676 $ 445 $ 22 $ 13,385 Nine months ended September 30, 2019 Beginning balance $ 5,401 $ 3,677 $ 1,524 $ 172 $ 26 $ 10,800 Provision for loan losses 2,449 (571 ) (647 ) 106 (11 ) 1,326 Charge-offs (1,603 ) — — (137 ) — (1,740 ) Recoveries 26 — — — — 26 Ending balance $ 6,273 $ 3,106 $ 877 $ 141 $ 15 $ 10,412 Interest forgone on nonaccrual loans totaled $23,000 and $154,000 for the three months ended September 30, 2020 and 2019, respectively, and $168,000 and $367,000 for the nine months ended September 30, 2020 and 2019, respectively. There was no interest recognized on a cash-basis on impaired loans for the three months and nine months ended September 30, 2020 and 2019, respectively. The recorded investment in impaired loans in the tables above excludes accrued interest receivable and net deferred loan origination costs due to their immateriality. Trouble Debt Restructurings At September 30, 2020, the Company had no recorded investments or allocated specific reserves related to loans with terms that had been modified in troubled debt restructurings. At December 31, 2019, the Company had a recorded investment of $722,000 and had allocated specific reserves totaling $12,000 related to loans with terms that had been modified in troubled debt restructurings. The Company had no commitments as of September 30, 2020 and December 31, 2019 to customers with outstanding loans that were classified as troubled debt restructurings. There were no new troubled debt restructurings during the nine months ended September 30, 2020 and 2019. The Company had no troubled debt restructurings with a subsequent payment default within twelve months following the modification during the three and nine months ended September 30, 2020 and 2019. COVID-19 For additional information regarding the impact of COVID-19 on the loan portfolio, see Footnote 7. |
Borrowing Arrangements
Borrowing Arrangements | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | 4. BORROWING ARRANGEMENTS The Company has a borrowing arrangement with the Federal Reserve Bank of San Francisco (FRB) under which advances are secured by portions of the Bank’s loan and investment securities portfolios. The Company’s credit limit varies according to the amount and composition of the assets pledged as collateral. At September 30, 2020, amounts pledged and available borrowing capacity under such limits were approximately $557.4 million and $472.2 million, respectively. At December 31, 2019, amounts pledged and available borrowing capacity under such limits were approximately $193.7 million and $127.3 million, respectively. In April 2020, the Company secured a $332.7 million Paycheck Protection Liquidity Facility (PPPLF) term borrowing for two years maturing in April 2022 at a fixed rate of 0.35%. The Company has a borrowing arrangement with the Federal Home Loan Bank (FHLB) under which advances are secured by portions of the Bank’s loan portfolio. The Bank’s credit limit varies according to its total assets and the amount and composition of the loan portfolio pledged as collateral. At September 30, 2020, amounts pledged and available borrowing capacity under such limits were approximately $236.8 million and $170.8 million, respectively. At December 31, 2019, amounts pledged and available borrowing capacity under such limits were approximately $188.8 million and $133.8 million, respectively. In June 2019, the Company secured a $10.0 million FHLB term borrowing for two years maturing in June 2021 at a fixed rate of 1.89%. In May 2020, the Company secured a $5.0 million FHLB term borrowing for one year maturing in May 2021 at a fixed rate of 0.00%, and another $5.0 million FHLB term borrowing for six months maturing in November 2020 at a fixed rate of 0.00%. Under agreements with several correspondent banks, the Company can borrow up to $61.0 million. In a separate agreement, the Company can borrow up to $10.0 million or the total market value of securities pledged to a correspondent bank under a repurchase agreement. At September 30, 2020 and December 31, 2019 there were no investment securities pledged to the correspondent bank under this agreement. There were no borrowings outstanding under these arrangements at September 30, 2020 and December 31, 2019. The Company maintains a revolving line of credit with a commitment of $3.0 million for a six month term at a rate of Prime plus 0.40%. At September 30, 2020 and December 31, 2019, no borrowings were outstanding under this line of credit. The Company entered into a three year borrowing arrangement with a correspondent bank on March 20, 2020 for $12.0 million. The note is secured by the Company’s investment in the Bank and has a fixed rate of 3.95%. The Bank issued $5.0 million in subordinated debt on April 15, 2016. The subordinated debt has a fixed interest rate of 5.875% for the first 5 years. After the fifth year, the interest rate changes to a variable rate of prime plus 2.00%. The subordinated debt was recorded net of related issuance costs of $87,000. On September 30, 2020 and December 31, 2019, the balances were $5.0 million and $5.0 million, net of issuance cost, respectively. The Company issued $20.0 million in subordinated debt on September 30, 2020. The subordinated debt has a fixed interest rate of 5.00% for the first 5 years and a stated maturity of September 30, 2030. After the fifth year, the interest rate changes to a quarterly variable rate equal to then current tree-month term SOFR plus 0.488% |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 5. COMMITMENTS AND CONTINGENT LIABILITIES Financial Instruments with Off-Balance The Company is a party to financial instruments with off-balance-sheet Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case At September 30, 2020 and December 31, 2019, the Company had outstanding commitments for loans of approximately $453.1 million and $390.0 million, respectively. Unfunded loan commitment reserves totaled $255,000 and $185,000 at September 30, 2020 and December 31, 2019, respectively. Operating Leases The Company leases various office premises under long-term operating lease agreements. These leases expire between 2020 and 2027, with certain leases containing either three, five, or seven year renewal options. The following table reflects the quantitative information for the Company’s leases. September 30, (Dollars in thousands) 2020 Operating lease cost (cost resulting from $ 1,859 Operating lease - operating cash flows (fixed payments) $ 1,811 Operating lease - ROU assets $ 8,781 Operating lease - liabilities $ 10,943 Weighted average lease term - operating leases 3.5 years Weighted average discount rate - operating leases 2.58 % The following table reflects the minimum commitments under these non-cancellable September 30, (Dollars in thousands) 2020 2020 $ 595 2021 2,431 2022 2,441 2023 1,497 2024 1,456 Thereafter 3,291 Total undiscounted cash 11,711 Discount on cash flows (768 ) Total lease libility $ 10,943 Rent expense included in premises and equipment expense totaled $619,000 and $473,000 for the three months ended September 30, 2020 and 2019, respectively. Rent expense included in premises and equipment expense totaled $1.9 million and $1.3 million for the nine months ended September 30, 2020 and 2019, respectively. Contingencies The Company may be subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the financial position or results of operations of the Company. Correspondent Banking Agreements The Company maintains funds on deposit with other federally insured financial institutions under correspondent banking agreements. Insured financial institution deposits up to $250,000 are fully insured by the FDIC under the FDIC’s general deposit insurance rules. At September 30, 2020, uninsured deposits at financial institutions were approximately $483.3 million. At December 31, 2019, uninsured deposits at financial institutions were approximately $4.0 million. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. FAIR VALUE MEASUREMENTS Fair Value Hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1—Quoted market prices for identical instruments traded in active exchange markets. Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3—Model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use on pricing the asset or liability. Valuation techniques include management judgment and estimation which may be significant. Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. The carrying amounts and estimated fair values of financial instruments at September 30, 2020 and December 31, 2019 are as follows: Carrying Fair Value Measurements (Dollars in thousands) Amount Level 1 Level 2 Level 3 Total As of September 30, 2020 Financial assets: Cash and due from banks $ 503,894 $ 503,894 $ — $ — $ 503,894 Securities available for sale 50,906 — 50,906 — 50,906 Loans, net 1,340,725 — — 1,343,541 1,343,541 Accrued interest receivable 6,488 — 103 6,385 6,488 Financial liabilities: Deposits $ 1,437,232 $ 1,301,370 $ 135,875 $ — $ 1,437,245 Other borrowings 352,703 — — 352,824 352,824 Subordinated debt 24,990 — — 24,633 24,633 Accrued interest payable 640 — 51 589 640 As of December 31, 2019 Financial assets: Cash and due from banks $ 114,342 $ 114,342 $ — $ — $ 114,342 Securities available for sale 28,555 — 28,555 — 28,555 Loans, net 941,132 — — 940,944 940,944 Accrued interest receivable 3,398 — 168 3,230 3,398 Financial liabilities: Deposits $ 988,236 $ 870,495 $ 121,136 $ — $ 991,631 Other borrowings 10,000 — — 10,032 10,032 Subordinated debt 4,977 — — 5,112 5,112 Accrued interest payable 400 — 326 74 400 These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. The methods and assumptions used to estimate fair values are described as follows: Cash and Due from banks—The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. Investment Securities—Since quoted prices are generally not available for identical securities, fair values are calculated based on market prices of similar securities on similar dates, resulting in Level 2 classification. FHLB, IBFC, PCBB Stock—It is not practical to determine the fair value of these correspondent bank stocks due to restrictions placed on their transferability. Loans—Fair values of loans for September 30, 2020 and December 31, 2019 are estimated on an exit price basis with contractual cash flow, prepayments, discount spreads, credit loss and liquidity premium assumptions. Loans with similar characteristics such as prepayment rates, terms and rate indexed are aggregated for purposes of the calculations. Impaired loans—Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. The fair value of impaired loans with specific allocations of the allowance for loan losses that are secured by real property is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The methods utilized to estimate the fair value of impaired loans do not necessarily represent an exit price. Deposits—The fair values disclosed for demand deposits (e.g., interest and non-interest FHLB Advances—FHLB Advances are included in Other Borrowings. Fair values for FHLB Advances are estimated using discounted cash flow analyses using interest rates offered at each reporting date by correspondent banks for advances with similar maturities resulting in Level 3 classification. Paycheck Protection Program Liquidity Facility (PPPLF)—The fair value of PPPLF is estimated using a discounted cash flow based on the remaining contractual term and current rates at which similar advances would be obtained resulting in Level 3 classification. Senior Notes—Fair values for senior notes are estimated using a discounted cash flow calculation based on current rates for similar types of debt which may be unobservable, and considering recent trading activity of similar instruments in market which can be inactive and accordingly are classified within in the Level 3 classification. Subordinated Debt—Fair values for subordinated debt are calculated based on its terms and were discounted to the date of the valuation to calculate the fair value on the debt. A market rate based on recent debt offering by peer bank was used to discount cash flow until reprice date and subsequently cash flow were discounted at Prime plus 2% for its security. These assumptions which may be unobservable, and considering recent trading activity of similar instruments in market which can be inactive and accordingly are classified within the Level 3 classification. Accrued Interest Receivable—The carrying amounts of accrued interest receivable approximate fair value resulting in a Level 2 classification for accrued interest receivable on investment securities and a Level 3 classification for accrued interest receivable on loans since investment securities are generally classified using Level 2 inputs and loans are generally classified using Level 3 inputs. Accrued Interest Payable—The carrying amounts of accrued interest payable approximate fair value resulting in a Level 2 classification, since accrued interest payable is from deposits that are generally classified using Level 2 inputs. Off Balance Sheet Instruments—Fair values for off-balance Assets Recorded at Fair Value on a Recurring Basis The Company is required or permitted to record the following assets at fair value on a recurring basis. (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 As of September 30, 2020 Investments available for sale: Mortgage backed securities $ 32,649 $ — $ 32,649 $ — Government agencies 2,439 — 2,439 — Corporate bonds 15,818 — 15,818 — Total assets measured at fair value on a recurring basis $ 50,906 $ — $ 50,906 $ — As of December 31, 2019 Investments available for sale: Mortgage backed securities $ 20,722 $ — $ 20,722 $ — Government agencies 7,833 — 7,833 — Corporate bonds — — — — Total assets measured at fair value on a recurring basis $ 28,555 $ — $ 28,555 $ — Fair values for available-for-sale Assets Recorded at Fair Value on a Non-Recurring The Company may be required, from time to time, to measure certain assets at fair value on a non-recurring non-recurring Carrying Fair Value Measurements (Dollars in thousands) Amount Level 1 Level 2 Level 3 As of September 31, 2020 Impaired loans - Commercial $ 346 $ — $ — $ 346 Impaired loans - SBA $ 234 $ — $ — $ 234 Total assets measured at fair value on a non-recurring $ 580 $ — $ — $ 580 As of December 31, 2019 Impaired loans - Commercial $ 2,474 $ — $ — $ 2,474 Impaired loans - Real estate other 705 705 Impaired loans - SBA 296 296 Total assets measured at fair value on a non-recurring $ 3,475 $ — $ — $ 3,475 The fair value of impaired loans is based upon independent market prices, estimated liquidation values of loan collateral or appraised value of the collateral as determined by third-party independent appraisers, less selling costs, generally. Level 3 fair value measurement includes other real estate owned that has been measured at fair value upon transfer to foreclosed assets and impaired loans collateralized by real property and other business asset collateral where a specific reserve has been established or a charged-off |
Business Impact Of Covid-19
Business Impact Of Covid-19 | 9 Months Ended |
Sep. 30, 2020 | |
Text Block [Abstract] | |
Business Impact Of Covid-19 | 7. BUSINESS IMPACT OF COVID-19 In December 2019, a novel strain of coronavirus, COVID-19, was reported in Wuhan, China. The COVID-19 virus continues to aggressively spread globally and has spread to over 185 countries, including all 50 states in the United States. A prolonged COVID-19 outbreak, or any other epidemic that harms the global economy, U.S. economy, or the economies in which we operate could adversely affect our operations. While the spread of the COVID-19 virus has minimally impacted our operations as of September 30, 2020, it has caused significant economic disruption throughout the United States as state and local governments issued “shelter at home” orders along with the closing of non-essential Investments Management has analyzed the investment portfolio and determined that any impairment would be temporary based on the type of investments the company holds. As part of the Company’s assessment of other-than-temporary-impairment (OTTI), management considered coronavirus COVID-19 and determined that the significant change in the general economic environment and financial markets represents an interim impairment indicator that will require continued evaluation. As a result, there is a reasonable possibility that OTTI could occur in the near term. Loan Portfolio The Company has taken measures to both support customers affected by the pandemic and to maintain strong asset quality, including implementing a broad-based risk management strategy to manage credit segments on a real-time basis, and monitoring portfolio risk and related mitigation strategies also by segment. The CARES Act and the revised interagency guidance issued in April 2020, “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by the Coronavirus (Revised)”, provide banks the option to temporarily suspend certain requirements under GAAP related to Troubled Debt Restructurings (“TDRs”) for a limited time to account for the effects of COVID-19. As a result, the Company will not be recognizing eligible COVID-19 loan modifications as TDRs. Additionally, loans qualifying for these modifications will not be required to be reported as delinquent, nonaccrual, impaired or criticized solely as a result of a COVID-19 loan modification. However, management continues to evaluate these loans for performance criteria separate from their respective COVID-19 loan modification status. Through the date of this filing, the Company has not experienced any loan charge-offs caused by the economic impact from COVID-19. Management has evaluated events related to COVID-19 that have occurred subsequent to September 30, 2020 and has concluded there are no matters that would require recognition in the accompanying unaudited consolidated financial statements. Proactive Deferral Program: As a result of the novel coronavirus COVID-19, through September 30, 2020 the Company granted payment deferments on approximately 385 loans with an aggregate outstanding balance of approximately $323.9 million and aggregate monthly principal and interest payments of approximately $3.7 million, none of which are considered to be TDRs, based on the relief provided under the CARES Act described above. The payment deferments were granted initially for up to 90 days, and the Company has considered an additional 90 days based on the circumstances on both a macro and micro level at the time. Of the initial deferments, 6 borrowers with 8 loans totaling $12.5 million have applied for an additional 90 day extension. As of the date of this filing, with the exception of these 8 loans, all loans that encompassed the original deferment pool have returned to a normal payment schedule. Paycheck Protection Program (PPP): The Company is also participating in the SBA Paycheck Protection Program (PPP). Key Features of the PPP include: • 24-month • Interest-rate of 1%, deferred payments for the first 6-months • The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). No collateral or personal guarantees are required. Neither the government nor lenders will charge any fees. • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. • Loans are guaranteed by the United States Treasury Department The Company processed 100% of the approximately 737 applications received and all of the eligible applications that were submitted to the SBA received approval. At September 30, 2020, the balance of the loans funded under the PPP was $362.0 million. The following table reflects the concentration of loans funded through the Paycheck Protection Program Liquidity Facility (PPPLF) as of September 30, 2020. Number of Principal Number of Loans as a % of Principal Balance as a % of (Dollars in millions) Loans Balance PPP Loans Gross Loans PPP Loans Gross Loans Dental services 284 $ 42.8 39 % 14 % 12 % 3 % Contractors 114 138.0 16 % 6 % 38 % 10 % Other 333 181.2 46 % 15 % 50 % 13 % Total 731 $ 362.0 100 % 35 % 100 % 26 % The PPP loans categorized above as “other” are comprised of multiple sectors, including professional/scientific services, retail, manufacturing, finance, wholesale, and real estate. The SBA began accepting client applications for loan forgiveness in August 2020. The Company has submitted 43 client applications to the SBA totaling $32.2 million. As of the date of this filing, clients representing an additional 174 loans totaling $120.7 million are in the process of completing loan forgiveness applications. Impact of Response to COVID-19 Pandemic Specific impacts of the COVID-19 macroeconomic environment on our operating results for the third quarter and first nine months of 2020 include the following: • Funding of loans under the PPP and related borrowing under the Paycheck Protection Program Liquidity Facility (PPPLF) provided net benefit to net interest income of $1.4 million and $2.8 million during the third quarter and nine months ended September 30, 2020, respectively, including the impact of amortization of deferred fees and origination costs. • The Company received $9.1 million in fees year-to-date related to the origination of PPP loans. Recognition of the fees was deferred at origination and is being recognized over the 24 month term of the loans. For the third quarter and nine months ended September 30, 2020, the Company amortized into interest income approximately $1.1 million and $2.3 million, respectively. As clients are accepted for loan forgiveness by the SBA, the remaining fees will be recognized at the time of payoff of the loan. • The Company deferred loan origination costs of approximately $2.5 million year-to-date year-to-date • The continued uncertainty regarding the severity and duration of the pandemic and related economic effects considered in our qualitative assessment of the allowance for loan losses resulted in a gross increase in the provision for the third quarter and nine months ended September 30, 2020 of approximately million, respectively. Our overall analysis of the allowance for loan losses considers multiple qualitative factors that may, in part, offset the gross impact on the provision specifically related to COVID-19. Goodwill The Company completed an impairment analysis of goodwill as of September 30, 2020 and determined there was no impairment. Goodwill impairment exists when a reporting unit’s carrying value exceeds its fair value, which is determined through a qualitative assessment whether it is more likely than not that the fair value of equity of the reporting unit exceeds the carrying value (“Step Zero”). As part of the Company’s qualitative assessment of goodwill impairment, management considered the triggering event of coronavirus COVID-19 and determined that the significant change in the general economic environment and financial markets, including our market capitalization, represents an interim impairment indicator that will require continued evaluation. However, we do not believe that it is more likely than not that a goodwill impairment exists as of September 30, 2020. |
Nature of Operations (Tables)
Nature of Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Earnings Per Share, Basic and Diluted | Three months ended Nine months ended (Dollars in thousands, except per share data) 2020 2019 2020 2019 Net income available to common shareholders $ 495 $ 2,004 $ 2,518 $ 6,422 Weighted average basic common shares outstanding 8,141,807 8,051,729 8,124,387 8,040,196 Add: dilutive potential common shares 27,527 83,608 35,134 80,180 Weighted average diluted common shares outstanding 8,169,334 8,135,337 8,159,521 8,120,376 Basic earnings per share $ 0.06 $ 0.25 $ 0.31 $ 0.80 Diluted earnings per share $ 0.06 $ 0.25 $ 0.31 $ 0.79 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The following table summarizes the amortized cost and estimated fair value of securities available for sale at September 30, 2020 and December 31, 2019. Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) At September 30, 2020: Mortgage backed securities $ 31,815 $ 881 $ (47 ) $ 32,649 Government agencies 2,444 — (5 ) 2,439 Corporate bonds 15,535 323 (40 ) 15,818 Total available for sale securities $ 49,794 $ 1,204 $ (92 ) $ 50,906 At December 31, 2019: Mortgage backed securities $ 20,291 $ 436 $ (5 ) $ 20,722 Government agencies 7,824 9 — 7,833 Corporate bonds — — — — Total available for sale securities $ 28,115 $ 445 $ (5 ) $ 28,555 |
Summary of available for sale securities and held to maturity securities continuous unrealized loss position fair value | The following table summarizes securities with unrealized losses at September 30, 2020 and December 31, 2019 aggregated by major security type and length of time in a continuous unrealized loss position. Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses At September 30, 2020: Mortgage backed securities $ 5,215 $ (47 ) $ — $ — $ 5,215 $ (47 ) Government agencies 2,444 (5 ) — — 2,444 (5 ) Corporate bonds 5,000 (40 ) — — 5,000 (40 ) Total available for sale securities $ 12,659 $ (92 ) $ — $ — $ 12,659 $ (92 ) At December 31, 2019: Mortgage backed securities $ 481 $ (5 ) $ — $ — $ 481 $ (5 ) Government agencies 1,598 — — — 1,598 — Corporate bonds — — — — — — Total available for sale securities $ 2,079 $ (5) $ — $ — $ 2,079 $ (5) |
Summary of maturities available for sale investment securities | The following table summarizes the scheduled maturities of available for sale investment securities as of September 30, 2020. September 30, 2020 Amortized Fair (Dollars in thousands) Cost Value Available for sale securities: Less that one year $ — $ — One to five years — — Five to ten years — — Beyond ten years 15,535 15,818 Securities not due at a single maturity date 34,259 35,088 Total available for sale securities $ 49,794 $ 50,906 |
Loans and Allowance For Loan _2
Loans and Allowance For Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | |
Summary of Outstanding Loans | Outstanding loans as of September 30, 2020 and December 31, 2019 are summarized below. Certain loans have been pledged to secure borrowing arrangements (see Note 4). Additionally, SBA loans include loans funded under the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was enacted as a result of the COVID-19 pandemic (see Note 7). September 30, December 31, (Dollars in thousands) 2020 2019 Commercial and industrial 379,400 389,746 Real estate - other 539,541 502,929 Real estate - construction and land 36,596 42,519 SBA 373,921 12,830 Other 25,706 1,628 Total loans, gross 1,355,164 949,652 Deferred loan origination (fees)/costs, net (1,054 ) 2,555 Allowance for loan losses (13,385 ) (11,075 ) Total loans, net 1,340,725 941,132 |
Summary of Information Related to Impaired Loans | The following table reflects information related to impaired loans as of September 30, 2020 and December 31, 2019. Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized As of September 30, 2020 With no related allowance recorded: Commercial and industrial $ 346 $ 1,480 $ — $ 1,480 $ — SBA $ 234 $ 479 $ — $ 1,921 $ — With an allowance recorded: Commercial and industrial $ 2,162 $ 2,162 $ 99 $ 2,338 $ 119 Total: Commercial and industrial $ 2,508 $ 3,642 $ 99 $ 3,818 $ 119 SBA $ 234 $ 479 $ — $ 1,921 $ — As of December 31, 2019 With no related allowance recorded: Commercial and industrial $ 1,846 $ 1,860 $ — $ 1,282 $ 68 Real estate - other $ 687 $ 687 $ — $ 700 $ 52 SBA $ 294 $ 294 $ — $ 1,723 $ — With an allowance recorded: Commercial and industrial $ 2,726 $ 4,623 $ 600 $ 4,620 $ 56 SBA $ 50 $ 200 $ 50 $ 203 $ 15 Total: Commercial and industrial $ 4,572 $ 6,483 $ 600 $ 5,902 $ 124 Real estate - other $ 687 $ 687 $ — $ 700 $ 52 SBA $ 344 $ 494 $ 50 $ 1,926 $ 15 |
Loans Receivable [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Summary of Financing Receivable and Related Impairment Methodology | The following table reflects the impairment methodology applied to gross loans by portfolio segment and the related allowance for loan losses as of September 30, 2020 and December 31, 2019. (Dollars in thousands) Commercial Real Estate Real Estate SBA Other Total As of September 30, 2020 Gross loans: Loans individually evaluated for impairment $ 2,508 $ — $ — $ 234 $ — $ 2,742 Loans collectively evaluated for impairment 376,892 539,541 36,596 373,687 25,706 1,352,422 Total gross loans $ 379,400 $ 539,541 $ 36,596 $ 373,921 $ 25,706 $ 1,355,164 Allowance for loan losses: Loans individually evaluated for impairment $ 99 $ — $ — $ — $ — $ 99 Loans collectively evaluated for impairment 8,535 3,608 676 445 22 13,286 Total allowance for loan losses $ 8,634 $ 3,608 $ 676 $ 445 $ 22 $ 13,385 As of December 31, 2019 Gross loans: Loans individually evaluated for impairment $ 4,572 $ 687 $ — $ 344 $ — $ 5,603 Loans collectively evaluated for impairment 385,174 502,242 42,519 12,486 1,628 944,049 Total loans $ 389,746 $ 502,929 $ 42,519 $ 12,830 $ 1,628 $ 949,652 Allowance for loan losses: Loans individually evaluated for impairment $ 600 $ — $ — $ 50 $ — $ 650 Loans collectively evaluated for impairment 6,108 3,281 1,022 6 8 10,425 Total allowance for loan losses $ 6,708 $ 3,281 $ 1,022 $ 56 $ 8 $ 11,075 |
Summary of Allowance for Loan Losses | The following table reflects the changes in, and allocation of, the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2020 and September 30, 2019. Commercial Real Estate and Real Estate Construction (Dollars in thousands) Industrial Other and Land SBA Other Total Three months ended September 30, 2020 Beginning balance $ 7,851 $ 3,332 $ 956 $ 366 $ 19 $ 12,524 Provision for loan losses 772 276 (280 ) 79 3 850 Charge-offs — — — — — — Recoveries 11 — — — — 11 Ending balance $ 8,634 $ 3,608 $ 676 $ 445 $ 22 $ 13,385 Three months ended September 30, 2019 Beginning balance $ 7,654 $ 2,688 $ 945 $ 199 $ 15 $ 11,501 Provision for loan losses 208 418 (68 ) (58 ) — 500 Charge-offs (1,604 ) — — — — (1,604 ) Recoveries 15 — — — — 15 Ending balance $ 6,273 $ 3,106 $ 877 $ 141 $ 15 $ 10,412 Nine months ended September 30, 2020 Beginning balance $ 6,708 $ 3,281 $ 1,022 $ 50 $ 14 $ 11,075 Provision for loan losses 3,688 327 (346 ) 503 8 4,180 Charge-offs (1,868 ) — — (108 ) — (1,976 ) Recoveries 106 — — — — 106 Ending balance $ 8,634 $ 3,608 $ 676 $ 445 $ 22 $ 13,385 Nine months ended September 30, 2019 Beginning balance $ 5,401 $ 3,677 $ 1,524 $ 172 $ 26 $ 10,800 Provision for loan losses 2,449 (571 ) (647 ) 106 (11 ) 1,326 Charge-offs (1,603 ) — — (137 ) — (1,740 ) Recoveries 26 — — — — 26 Ending balance $ 6,273 $ 3,106 $ 877 $ 141 $ 15 $ 10,412 |
Summary of Loan Portfolio Allocated by Management's Internal Risk Ratings | The following table reflects the loan portfolio allocated by management’s internal risk ratings at September 30, 2020 and December 31, 2019. Commercial Real Estate and Real Estate Construction (Dollars in thousands) Industrial Other and Land SBA Other Total As of September 30, 2020 Grade: Pass $ 361,080 $ 529,404 $ 34,052 $ 371,459 $ 25,706 $ 1,321,701 Special Mention 11,677 5,658 766 1,023 — 19,124 Substandard 6,643 4,479 1,778 1,439 — 14,339 Total $ 379,400 $ 539,541 $ 36,596 $ 373,921 $ 25,706 $ 1,355,164 As of December 31, 2019 Grade: Pass $ 378,327 $ 494,314 $ 40,731 $ 10,736 $ 1,628 $ 925,736 Special Mention 6,894 7,928 1,788 1,655 — 18,265 Substandard 4,525 687 — 439 — 5,651 Total $ 389,746 $ 502,929 $ 42,519 $ 12,830 $ 1,628 $ 949,652 |
Summary of Aging Analysis of the Loan Portfolio by the Time Past Due | The following table reflects an aging analysis of the loan portfolio by the time past due at September 30, 2020 and December 31, 2019. (Dollars in thousands) 30 Days 60 Days 90+ Days Non-Accrual Current Total As of September 30, 2020 Commercial and industrial $ — $ 3,444 $ — $ 346 $ 375,610 $ 379,400 Real estate - other 628 — — — 538,913 539,541 Real estate - construction and land — — — — 36,596 36,596 SBA — — — 234 373,687 373,921 Other — — — — 25,706 25,706 Total loans, gross $ 628 $ 3,444 $ — $ 580 $ 1,350,512 $ 1,355,164 As of December 31, 2019 Commercial and industrial $ — $ 1,440 $ — $ 2,409 $ 385,897 $ 389,746 Real estate - other — — — — 502,929 502,929 Real estate- construction and land — — — — 42,519 42,519 SBA — — — 344 12,486 12,830 Other — — — — 1,628 1,628 Total loans, gross $ — $ 1,440 $ — $ 2,753 $ 945,459 $ 949,652 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Quantitative Information About Operating Leases | The following table reflects the quantitative information for the Company’s leases. September 30, (Dollars in thousands) 2020 Operating lease cost (cost resulting from $ 1,859 Operating lease - operating cash flows (fixed payments) $ 1,811 Operating lease - ROU assets $ 8,781 Operating lease - liabilities $ 10,943 Weighted average lease term - operating leases 3.5 years Weighted average discount rate - operating leases 2.58 % |
Summary of Lessee, Operating Lease | The following table reflects the minimum commitments under these non-cancellable September 30, (Dollars in thousands) 2020 2020 $ 595 2021 2,431 2022 2,441 2023 1,497 2024 1,456 Thereafter 3,291 Total undiscounted cash 11,711 Discount on cash flows (768 ) Total lease libility $ 10,943 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments at September 30, 2020 and December 31, 2019 are as follows: Carrying Fair Value Measurements (Dollars in thousands) Amount Level 1 Level 2 Level 3 Total As of September 30, 2020 Financial assets: Cash and due from banks $ 503,894 $ 503,894 $ — $ — $ 503,894 Securities available for sale 50,906 — 50,906 — 50,906 Loans, net 1,340,725 — — 1,343,541 1,343,541 Accrued interest receivable 6,488 — 103 6,385 6,488 Financial liabilities: Deposits $ 1,437,232 $ 1,301,370 $ 135,875 $ — $ 1,437,245 Other borrowings 352,703 — — 352,824 352,824 Subordinated debt 24,990 — — 24,633 24,633 Accrued interest payable 640 — 51 589 640 As of December 31, 2019 Financial assets: Cash and due from banks $ 114,342 $ 114,342 $ — $ — $ 114,342 Securities available for sale 28,555 — 28,555 — 28,555 Loans, net 941,132 — — 940,944 940,944 Accrued interest receivable 3,398 — 168 3,230 3,398 Financial liabilities: Deposits $ 988,236 $ 870,495 $ 121,136 $ — $ 991,631 Other borrowings 10,000 — — 10,032 10,032 Subordinated debt 4,977 — — 5,112 5,112 Accrued interest payable 400 — 326 74 400 |
Summary of Assets at Fair Value on a Recurring Basis | The Company is required or permitted to record the following assets at fair value on a recurring basis. (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 As of September 30, 2020 Investments available for sale: Mortgage backed securities $ 32,649 $ — $ 32,649 $ — Government agencies 2,439 — 2,439 — Corporate bonds 15,818 — 15,818 — Total assets measured at fair value on a recurring basis $ 50,906 $ — $ 50,906 $ — As of December 31, 2019 Investments available for sale: Mortgage backed securities $ 20,722 $ — $ 20,722 $ — Government agencies 7,833 — 7,833 — Corporate bonds — — — — Total assets measured at fair value on a recurring basis $ 28,555 $ — $ 28,555 $ — |
Summary of Impaired Loans Measured at Fair Value on a Non-Recurring Basis | The following table summarizes impaired loans measured at fair value on a non-recurring Carrying Fair Value Measurements (Dollars in thousands) Amount Level 1 Level 2 Level 3 As of September 31, 2020 Impaired loans - Commercial $ 346 $ — $ — $ 346 Impaired loans - SBA $ 234 $ — $ — $ 234 Total assets measured at fair value on a non-recurring $ 580 $ — $ — $ 580 As of December 31, 2019 Impaired loans - Commercial $ 2,474 $ — $ — $ 2,474 Impaired loans - Real estate other 705 705 Impaired loans - SBA 296 296 Total assets measured at fair value on a non-recurring $ 3,475 $ — $ — $ 3,475 |
Business Impact Of Covid-19 (Ta
Business Impact Of Covid-19 (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Text Block [Abstract] | |
Schedule of loans funded through PPPLF | The following table reflects the concentration of loans funded through the Paycheck Protection Program Liquidity Facility (PPPLF) as of September 30, 2020. Number of Principal Number of Loans as a % of Principal Balance as a % of (Dollars in millions) Loans Balance PPP Loans Gross Loans PPP Loans Gross Loans Dental services 284 $ 42.8 39 % 14 % 12 % 3 % Contractors 114 138.0 16 % 6 % 38 % 10 % Other 333 181.2 46 % 15 % 50 % 13 % Total 731 $ 362.0 100 % 35 % 100 % 26 % |
Nature of Operations - Summary
Nature of Operations - Summary of Earnings Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||||
Net income available to common shareholders | $ 495 | $ 1,550 | $ 473 | $ 2,004 | $ 2,550 | $ 1,868 | $ 2,518 | $ 6,422 |
Weighted average basic common shares outstanding | 8,141,807 | 8,051,729 | 8,124,387 | 8,040,196 | ||||
Add: dilutive potential common shares | 27,527 | 83,608 | 35,134 | 80,180 | ||||
Weighted average diluted common shares outstanding | 8,169,334 | 8,135,337 | 8,159,521 | 8,120,376 | ||||
Basic earnings per share | $ 0.06 | $ 0.25 | $ 0.31 | $ 0.80 | ||||
Diluted earnings per share | $ 0.06 | $ 0.25 | $ 0.31 | $ 0.79 |
Investment Securities - Summary
Investment Securities - Summary Of The Amortized Cost And Estimated Fair Value Of Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 49,794 | $ 28,115 |
Gross unrealized gains | 1,204 | 445 |
Gross unrealized losses | (92) | (5) |
Estimated fair value | 50,906 | 28,555 |
Corporate bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 15,535 | 0 |
Gross unrealized gains | 323 | 0 |
Gross unrealized losses | (40) | 0 |
Estimated fair value | 15,818 | |
Mortgage backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 31,815 | 20,291 |
Gross unrealized gains | 881 | 436 |
Gross unrealized losses | (47) | (5) |
Estimated fair value | 32,649 | 20,722 |
Government agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 2,444 | 7,824 |
Gross unrealized gains | 0 | 9 |
Gross unrealized losses | (5) | 0 |
Estimated fair value | $ 2,439 | $ 7,833 |
Investment Securities - Summa_2
Investment Securities - Summary of Available-For-Sale Securities and Held to Maturity Securities, Continuous Unrealized Loss Position, Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Line Items] | ||
Less than 12 months fair value | $ 12,659 | $ 2,079 |
Less than 12 months unrealized losses | (92) | (5) |
Fair value | 12,659 | 2,079 |
Unrealized losses | (92) | (5) |
Mortgage backed securities [Member] | ||
Investments Debt And Equity Securities [Line Items] | ||
Less than 12 months fair value | 5,215 | 481 |
Less than 12 months unrealized losses | (47) | (5) |
Fair value | 5,215 | 481 |
Unrealized losses | (47,000) | (5) |
Government agencies [Member] | ||
Investments Debt And Equity Securities [Line Items] | ||
Less than 12 months fair value | 2,444 | 1,598 |
Less than 12 months unrealized losses | (5) | |
Fair value | 2,444 | $ 1,598 |
Unrealized losses | (5) | |
Corporate bonds [Member] | ||
Investments Debt And Equity Securities [Line Items] | ||
Less than 12 months fair value | 5,000 | |
Less than 12 months unrealized losses | (40) | |
Fair value | 5,000 | |
Unrealized losses | $ (40,000) |
Investment Securities - Summa_3
Investment Securities - Summary of Maturities Available for Sale Investment Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost Available for sale securities: | ||
Beyond ten years | $ 15,535 | |
Securities not due at a single maturity date | 34,259 | |
Total available for sale securities | 49,794 | $ 28,115 |
Fair Value Available for sale securities: | ||
Beyond ten years | 15,818 | |
Securities not due at a single maturity date | 35,088 | |
Total available for sale securities | $ 50,906 | $ 28,555 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)Securities | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)Securities | Dec. 31, 2018Securities | |
Investments Debt And Equity Securities [Line Items] | ||||
Number of securities held in portfolio | 21 | |||
Number of available for sale securities in unrealized loss positions | 6 | 12 | ||
Net unrealized gains on available for sale investment securities | $ | $ 1,100,000 | $ 440,000 | ||
Payments to acquire securities | $ | 35,400,000 | |||
Proceeds from sale of securities | $ | $ 7,700,000 | $ 0 | ||
Government agency [Member] | ||||
Investments Debt And Equity Securities [Line Items] | ||||
Number of available for sale securities in unrealized loss positions | 1 | |||
Mortgage-backed and Government securities—Residential [Member] | ||||
Investments Debt And Equity Securities [Line Items] | ||||
Number of available for sale securities in unrealized loss positions | 1 |
Loans and Allowance For Loan _3
Loans and Allowance For Loan Losses - Summary of Outstanding Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and Leases Receivable Gross | $ 1,355,164 | $ 949,652 | ||||
Deferred loan origination (fees)/costs, net | (1,054) | 2,555 | ||||
Allowance for loan losses | (13,385) | $ (12,524) | (11,075) | $ (10,412) | $ (11,501) | $ (10,800) |
Total loans, net | 1,340,725 | 941,132 | ||||
Commercial And Industrial [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and Leases Receivable Gross | 379,400 | 389,746 | ||||
Allowance for loan losses | (8,634) | (7,851) | (6,708) | (6,273) | (7,654) | (5,401) |
Real Estate - Other [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and Leases Receivable Gross | 539,541 | 502,929 | ||||
Real Estate - Construction & Land [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and Leases Receivable Gross | 36,596 | 42,519 | ||||
Allowance for loan losses | (676) | (956) | (1,022) | (877) | (945) | (1,524) |
SBA [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and Leases Receivable Gross | 373,921 | 12,830 | ||||
Allowance for loan losses | (445) | (366) | (50) | (141) | (199) | (172) |
Other Loans [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and Leases Receivable Gross | 25,706 | 1,628 | ||||
Allowance for loan losses | $ (22) | $ (19) | $ (14) | $ (15) | $ (15) | $ (26) |
Loans and Allowance For Loan _4
Loans and Allowance For Loan Losses - Summary of Loan Portfolio Allocated by Management's Internal Risk Ratings (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | $ 1,355,164 | $ 949,652 |
Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 379,400 | 389,746 |
Real Estate Construction And Land [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 36,596 | 42,519 |
SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 373,921 | 12,830 |
Other Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 25,706 | 1,628 |
Loans Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 1,355,164 | 949,652 |
Loans Receivable [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 1,321,701 | 925,736 |
Loans Receivable [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 19,124 | 18,265 |
Loans Receivable [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 14,339 | 5,651 |
Loans Receivable [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 379,400 | 389,746 |
Loans Receivable [Member] | Commercial And Industrial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 361,080 | 378,327 |
Loans Receivable [Member] | Commercial And Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 11,677 | 6,894 |
Loans Receivable [Member] | Commercial And Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 6,643 | 4,525 |
Loans Receivable [Member] | Real Estate, Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 539,541 | 502,929 |
Loans Receivable [Member] | Real Estate, Other [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 529,404 | 494,314 |
Loans Receivable [Member] | Real Estate, Other [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 5,658 | 7,928 |
Loans Receivable [Member] | Real Estate, Other [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 4,479 | 687 |
Loans Receivable [Member] | Real Estate Construction And Land [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 36,596 | 42,519 |
Loans Receivable [Member] | Real Estate Construction And Land [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 34,052 | 40,731 |
Loans Receivable [Member] | Real Estate Construction And Land [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 766 | 1,788 |
Loans Receivable [Member] | Real Estate Construction And Land [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 1,778 | |
Loans Receivable [Member] | SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 373,921 | 12,830 |
Loans Receivable [Member] | SBA [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 371,459 | 10,736 |
Loans Receivable [Member] | SBA [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 1,023 | 1,655 |
Loans Receivable [Member] | SBA [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 1,439 | 439 |
Loans Receivable [Member] | Other Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | 25,706 | 1,628 |
Loans Receivable [Member] | Other Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Credit Exposure | $ 25,706 | $ 1,628 |
Loans and Allowance For Loan _5
Loans and Allowance For Loan Losses - Summary of Aging Analysis of the Loan Portfolio by the Time Past Due (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,355,164 | $ 949,652 |
Commercial And Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 379,400 | 389,746 |
Real Estate - Construction & Land [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 36,596 | 42,519 |
SBA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 373,921 | 12,830 |
Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25,706 | 1,628 |
Loans Receivable [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 580 | 2,753 |
Current | 1,350,512 | 945,459 |
Total | 1,355,164 | 949,652 |
Loans Receivable [Member] | Over 30 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Past Due | 628 | |
Loans Receivable [Member] | Over 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Past Due | 3,444 | 1,440 |
Loans Receivable [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 346 | 2,409 |
Current | 375,610 | 385,897 |
Total | 379,400 | 389,746 |
Loans Receivable [Member] | Commercial And Industrial [Member] | Over 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Past Due | 3,444 | 1,440 |
Loans Receivable [Member] | Real Estate - Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 538,913 | 502,929 |
Total | 539,541 | 502,929 |
Loans Receivable [Member] | Real Estate - Other [Member] | Over 30 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Past Due | 628 | |
Loans Receivable [Member] | Real Estate - Construction & Land [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 36,596 | 42,519 |
Total | 36,596 | 42,519 |
Loans Receivable [Member] | SBA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 234 | 344 |
Current | 373,687 | 12,486 |
Total | 373,921 | 12,830 |
Loans Receivable [Member] | Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 25,706 | 1,628 |
Total | $ 25,706 | $ 1,628 |
Loans and Allowance For Loan _6
Loans and Allowance For Loan Losses - Summary of Financing Receivable and Related Impairment Methodology (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | $ 1,355,164 | $ 949,652 |
Commercial And Industrial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 379,400 | 389,746 |
Real Estate Construction & Land [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 36,596 | 42,519 |
SBA [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 373,921 | 12,830 |
Other Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total gross loans | 25,706 | 1,628 |
Loans Receivable [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans individually evaluated for impairment | 2,742 | 5,603 |
Loans collectively evaluated for impairment | 1,352,422 | 944,049 |
Total gross loans | 1,355,164 | 949,652 |
Loans individually evaluated for impairment | 99 | 650 |
Loans collectively evaluated for impairment | 13,286 | 10,425 |
Total allowance for loan losses | 13,385 | 11,075 |
Loans Receivable [Member] | Commercial And Industrial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans individually evaluated for impairment | 2,508 | 4,572 |
Loans collectively evaluated for impairment | 376,892 | 385,174 |
Total gross loans | 379,400 | 389,746 |
Loans individually evaluated for impairment | 99 | 600 |
Loans collectively evaluated for impairment | 8,535 | 6,108 |
Total allowance for loan losses | 8,634 | 6,708 |
Loans Receivable [Member] | Real Estate - Other [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans individually evaluated for impairment | 687 | |
Loans collectively evaluated for impairment | 539,541 | 502,242 |
Total gross loans | 539,541 | 502,929 |
Loans collectively evaluated for impairment | 3,608 | 3,281 |
Total allowance for loan losses | 3,608 | 3,281 |
Loans Receivable [Member] | Real Estate Construction & Land [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans collectively evaluated for impairment | 36,596 | 42,519 |
Total gross loans | 36,596 | 42,519 |
Loans collectively evaluated for impairment | 676 | 1,022 |
Total allowance for loan losses | 676 | 1,022 |
Loans Receivable [Member] | SBA [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans individually evaluated for impairment | 234 | 344 |
Loans collectively evaluated for impairment | 373,687 | 12,486 |
Total gross loans | 373,921 | 12,830 |
Loans individually evaluated for impairment | 50 | |
Loans collectively evaluated for impairment | 445 | 6 |
Total allowance for loan losses | 445 | 56 |
Loans Receivable [Member] | Other Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans collectively evaluated for impairment | 25,706 | 1,628 |
Total gross loans | 25,706 | 1,628 |
Loans collectively evaluated for impairment | 22 | 8 |
Total allowance for loan losses | $ 22 | $ 8 |
Loans and Allowance For Loan _7
Loans and Allowance For Loan Losses - Summary of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Beginning balance | $ 12,524 | $ 11,501 | $ 11,075 | $ 10,800 |
Provision for loan losses | 850 | 500 | 4,180 | 1,326 |
Charge offs | (1,604) | (1,976) | (1,740) | |
Recoveries | 11 | 15 | 106 | 26 |
Ending balance | 13,385 | 10,412 | 13,385 | 10,412 |
Commercial And Industrial [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Beginning balance | 7,851 | 7,654 | 6,708 | 5,401 |
Provision for loan losses | 772 | 208 | 3,688 | 2,449 |
Charge offs | (1,604) | (1,868) | (1,603) | |
Recoveries | 11 | 15 | 106 | 26 |
Ending balance | 8,634 | 6,273 | 8,634 | 6,273 |
Real Estate, Other [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Beginning balance | 3,332 | 2,688 | 3,281 | 3,677 |
Provision for loan losses | 276 | 418 | 327 | (571) |
Ending balance | 3,608 | 3,106 | 3,608 | 3,106 |
Real Estate Construction And Land [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Beginning balance | 956 | 945 | 1,022 | 1,524 |
Provision for loan losses | (280) | (68) | (346) | (647) |
Ending balance | 676 | 877 | 676 | 877 |
SBA [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Beginning balance | 366 | 199 | 50 | 172 |
Provision for loan losses | 79 | (58) | 503 | 106 |
Charge offs | (108) | (137) | ||
Ending balance | 445 | 141 | 445 | 141 |
Other Loans [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Beginning balance | 19 | 15 | 14 | 26 |
Provision for loan losses | 3 | 0 | 8 | (11) |
Ending balance | $ 22 | $ 15 | $ 22 | $ 15 |
Loans and Allowance For Loan _8
Loans and Allowance For Loan Losses - Summary of Information Related to Impaired Loans (Detail) - Loans Receivable [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Commercial And Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With no related allowance | $ 346 | $ 1,846 |
Unpaid Principal Balance With no related allowance | 1,480 | 1,860 |
Average Recorded Investment With no related allowance | 1,480 | 1,282 |
Interest Income Recognized With no related allowance | 0 | 68 |
Recorded Investment With an allowance | 2,162 | 2,726 |
Unpaid Principal Balance With an allowance | 2,162 | 4,623 |
Related Allowance | 99 | 600 |
Average Recorded Investment With an allowance | 2,338 | 4,620 |
Interest Income Recognized With an allowance | 119 | 56 |
Recorded Investment | 2,508 | 4,572 |
Unpaid Principal Balance | 3,642 | 6,483 |
Average Recorded Investment | 3,818 | 5,902 |
Interest Income Recognized | 119 | 124 |
Real Estate - Other [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With no related allowance | 687 | |
Unpaid Principal Balance With no related allowance | 687 | |
Average Recorded Investment With no related allowance | 700 | |
Interest Income Recognized With no related allowance | 52 | |
Recorded Investment | 687 | |
Unpaid Principal Balance | 687 | |
Average Recorded Investment | 700 | |
Interest Income Recognized | 52 | |
SBA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With no related allowance | 234 | 294 |
Unpaid Principal Balance With no related allowance | 479 | 294 |
Average Recorded Investment With no related allowance | 1,921 | 1,723 |
Recorded Investment With an allowance | 50 | |
Unpaid Principal Balance With an allowance | 200 | |
Related Allowance | 50 | |
Average Recorded Investment With an allowance | 203 | |
Interest Income Recognized With an allowance | 15 | |
Recorded Investment | 234 | 344 |
Unpaid Principal Balance | 479 | 494 |
Average Recorded Investment | $ 1,921 | 1,926 |
Interest Income Recognized | $ 15 |
Loans and Allowance For Loan _9
Loans and Allowance For Loan Losses - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Loans | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest forgone on nonaccrual loans | $ 23,000 | $ 154,000 | $ 168,000 | $ 367,000 | |
Financing Receivable, Troubled Debt Restructuring | $ 0 | $ 0 | |||
Financing Receivable, Modifications, Number of Contracts | Loans | 0 | 0 | |||
Increase Decrease In Allowance For Loan And Lease Losses | $ 0 | $ 0 | |||
Revolving Credit Facility [Member] | One Year Prime Rate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt Instrument, Variable Interest Rate Basis | six month term at a rate of Prime plus 0.40% | one-year at a rate of Prime plus 0.40% | |||
Loans Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring | $ 722,000 | ||||
Financing Receivables Impaired Troubled Debt Restructuring Specific Reserve | $ 12,000 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Detail) - USD ($) | Jun. 30, 2020 | May 31, 2020 | Apr. 30, 2020 | Apr. 15, 2016 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||||||||
FHLB Advance, Collateral Pledged | $ 236,800,000 | $ 236,800,000 | $ 188,800,000 | |||||
FHLB Advance, Available Borrowing Capacity | 170,800,000 | 170,800,000 | 133,800,000 | |||||
FHLB Advance, Amount Of Advances | $ 5,000,000 | $ 5,000,000 | $ 10,000,000 | |||||
FHLB Advance, Term | 6 months | 1 year | 2 years | |||||
FHLB Advance, Maturity Date | 2020 | 2021 | 2021 | |||||
FHLB Advance, Interest Rate | 0.00% | 0.00% | 1.89% | |||||
Security Owned And Pledged As Collateral | 0 | 0 | 0 | |||||
Junior Subordinated debt securities | 24,990,000 | $ 24,990,000 | 4,977,000 | |||||
Junior Subordinated Debt [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 5,000,000 | |||||||
Debt Instrument, IssuanceDate | Apr. 15, 2016 | Sep. 30, 2020 | ||||||
Debt Instrument, Interest Rate Terms | The subordinated debt has a fixed interest rate of 5.875% for the first 5 years. | The subordinated debt has a fixed interest rate of 5.00% for the first 5 years | ||||||
Debt Instrument, Fixed Interest Rate | 5.875% | |||||||
Related issuance costs | $ 87,000 | |||||||
Junior Subordinated debt securities | 5,000,000 | |||||||
Prime Rate [Member] | Junior Subordinated Debt [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Debt Instrument, Variable Interest Rate Basis | variable rate of prime plus 2.00% | |||||||
Debt Instrument, Variable Rate | 2.00% | |||||||
SOFR [Member] | Junior Subordinated Debt [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Debt Instrument, Variable Interest Rate Basis | variable rate equal to then current tree-month term SOFR plus 0.488% | |||||||
Debt Instrument, Variable Rate | 0.488% | |||||||
Debt Instrument, Face Amount | $ 20,000,000 | $ 20,000,000 | ||||||
Debt Instrument, Fixed Interest Rate | 5.00% | 5.00% | ||||||
Correspondent Banks [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Borrowings outstanding | $ 0 | $ 0 | 0 | |||||
Line Of Credit Maximum Borrowing Capacity | 61,000,000 | 61,000,000 | ||||||
Correspondent Banks [Member] | Repurchase Agreement [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Line Of Credit Maximum Borrowing Capacity | 10,000,000 | 10,000,000 | ||||||
Secured Debt [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Line Of Credit Maximum Borrowing Capacity | $ 12,000,000 | $ 12,000,000 | ||||||
Line of Credit Facility, Expiration Period | 3 years | |||||||
Line Of Credit, Fixed Interest Rate | 3.95% | |||||||
Secured Debt [Member] | Federal Reserve Bank of San Francisco [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Loans Pledged As Collateral | $ 557,400,000 | $ 557,400,000 | 193,700,000 | |||||
Line Of Credit Available Borrowing Capacity | 472,200,000 | 472,200,000 | 127,300,000 | |||||
Revolving Credit Facility [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Borrowings outstanding | 0 | 0 | $ 0 | |||||
Line Of Credit Maximum Borrowing Capacity | $ 3,000,000 | $ 3,000,000 | ||||||
Revolving Credit Facility [Member] | One Year Prime Rate [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Debt Instrument, Variable Interest Rate Basis | six month term at a rate of Prime plus 0.40% | one-year at a rate of Prime plus 0.40% | ||||||
Debt Instrument, Variable Rate | 0.40% | |||||||
Paycheck Protection Liquidity Facility [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Line Of Credit Maximum Borrowing Capacity | $ 332,700,000 | |||||||
Line of Credit Facility, Expiration Period | 2 years | |||||||
Line Of Credit, Fixed Interest Rate | 0.35% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Percentage Of Commercial And industrial Loans to Total Loans | |||||
Cash Deposit FDIC Insurance Limit | $ 250,000 | $ 250,000 | |||
Uninsured deposits at financial institutions | 483,300 | 483,300 | $ 4,000 | ||
Commitments for loans | 453,100 | 453,100 | 390,000 | ||
Reserve for unfunded loan commitments | 255,000 | 255,000 | $ 185,000 | ||
Rent and equipment expense | $ 619,000 | $ 473,000 | $ 1,900 | $ 1,300 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Summary of Quantitative Information for the Company's Leases (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Operating lease cost (cost resulting from lease payments) | $ 1,859 |
Operating lease - operating cash flows (fixed payments) | 1,811 |
Operating lease - ROU assets | 8,781 |
Operating lease - liabilities | $ 10,943 |
Weighted average lease term - operating leases | 3 years 6 months |
Weighted average discount rate - operating leases | 2.58% |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Summary of Operating Lease (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 595 |
2021 | 2,431 |
2022 | 2,441 |
2023 | 1,497 |
2024 | 1,456 |
Thereafer | 3,291 |
Total undiscounted cash flows | 11,711 |
Discount on cash flows | (768) |
Total lease libility | $ 10,943 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets | ||||
Cash and due from banks | $ 503,894 | $ 114,342 | $ 67,660 | $ 78,705 |
Securities available for sale | 50,906 | 28,555 | ||
Loans, net | 1,343,541 | 940,944 | ||
Accrued interest receivable | 6,488 | 3,398 | ||
Financial liabilities | ||||
Deposits | 1,437,245 | 991,631 | ||
Other borrowings | 352,824 | 10,032 | ||
Subordinated debt | 24,633 | 5,112 | ||
Accrued interest payable | 640 | 400 | ||
Carrying Amount [Member] | ||||
Financial assets | ||||
Cash and due from banks | 503,894 | 114,342 | ||
Securities available for sale | 50,906 | 28,555 | ||
Loans, net | 1,340,725 | 941,132 | ||
Accrued interest receivable | 6,488 | 3,398 | ||
Financial liabilities | ||||
Deposits | 1,437,232 | 988,236 | ||
Other borrowings | 352,703 | 10,000 | ||
Subordinated debt | 24,990 | 4,977 | ||
Accrued interest payable | 640 | 400 | ||
Level 1 [Member] | ||||
Financial assets | ||||
Cash and due from banks | 503,894 | 114,342 | ||
Financial liabilities | ||||
Deposits | 1,301,370 | 870,495 | ||
Level 2 [Member] | ||||
Financial assets | ||||
Securities available for sale | 50,906 | 28,555 | ||
Accrued interest receivable | 103 | 168 | ||
Financial liabilities | ||||
Deposits | 135,875 | 121,136 | ||
Accrued interest payable | 51 | 326 | ||
Level 3 [Member] | ||||
Financial assets | ||||
Loans, net | 1,343,541 | 940,944 | ||
Accrued interest receivable | 6,385 | 3,230 | ||
Financial liabilities | ||||
Other borrowings | 352,824 | 10,032 | ||
Subordinated debt | 24,633 | 5,112 | ||
Accrued interest payable | $ 589 | $ 74 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Apr. 15, 2016 |
Junior Subordinated Debt [Member] | Prime Rate [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt Instrument, Variable Rate | 2.00% |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Assets at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a recurring basis | $ 50,906 | $ 28,555 |
Mortgage backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a recurring basis | 32,649 | 20,722 |
Government agencies [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a recurring basis | 2,439 | 7,833 |
Corporate bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a recurring basis | 15,818 | |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a recurring basis | 50,906 | 28,555 |
Level 2 [Member] | Mortgage backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a recurring basis | 32,649 | 20,722 |
Level 2 [Member] | Government agencies [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a recurring basis | 2,439 | $ 7,833 |
Level 2 [Member] | Corporate bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a recurring basis | $ 15,818 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Impaired Loans Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 580 | $ 3,475 |
Carrying Amount [Member] | Commercial [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 346 | 2,474 |
Carrying Amount [Member] | Real estate other [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 705 | |
Carrying Amount [Member] | SBA [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 234 | 296 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 580 | 3,475 |
Level 3 [Member] | Commercial [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 346 | 2,474 |
Level 3 [Member] | Real estate other [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 705 | |
Level 3 [Member] | SBA [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 234 | $ 296 |
Business Impact Of Covid-19 - A
Business Impact Of Covid-19 - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020USD ($)Loans | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Loans | Sep. 30, 2019USD ($) | Dec. 31, 2019Loans | Aug. 31, 2020USD ($) | |
Financing receivable, modifications, number of contracts | Loans | 0 | 0 | |||||
Financing receivable, troubled debt restructuring | $ 0 | $ 0 | |||||
Number of loan applications received | Loans | 731 | ||||||
Goodwill, Impairment | $ 0 | ||||||
Percentage of processed application under PPP loan | 100.00% | ||||||
Loan funded under PPP loan | 362,000,000 | $ 362,000,000 | |||||
Interest Income (Expense), Net | $ 11,188,000 | $ 10,433,000 | 32,154,000 | $ 30,355,000 | |||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 0 | $ 0 | |||||
SBA Payment Protection Program [Member] | |||||||
Financing receivable modifications payment deferral number of days | 6 months | ||||||
Debt Instrument, Term | 24 months | ||||||
Debt Instrument, Fixed Interest Rate | 1.00% | 1.00% | |||||
Number of loan applications received | Loans | 737 | ||||||
Value of financing receivables apply for loan forgiveness | $ 32,200,000 | ||||||
Value of financing receivables apply for loan forgiveness in process | $ 120,700,000 | ||||||
PPP Loans [Member] | |||||||
Loan funded under PPP loan | $ 362,000,000 | $ 362,000,000 | |||||
Interest Income (Expense), Net | 312,000 | 625,000 | |||||
COVID-19 [Member] | PPP Loans [Member] | |||||||
Fees received | 9,100,000 | ||||||
Amortization of loan | 1,100,000 | $ 2,500,000 | 2,300,000 | ||||
Interest Income (Expense), Net | 1.4 | 2,800,000 | |||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 1,100,000 | 3,300,000 | |||||
COVID-19 [Member] | Loan Modifications Loans [Member] | |||||||
Amortization of loan | $ 1,700,000 | ||||||
COVID-19 [Member] | Payment Deferral [Member] | |||||||
Financing receivable, modifications, number of contracts | Loans | 385 | ||||||
Financing receivable, troubled debt restructuring | $ 323,900,000 | 323,900,000 | |||||
Financing receivable modifications aggregate monthly principal and interest payments | $ 3,700,000 | 3,700,000 | |||||
Financing receivable modifications payment deferral number of days | 90 days | ||||||
Financing receivable modifications, payment deferral, additional number of days | 90 days | ||||||
Financing receivables apply for extension | $ 12,500,000 | $ 12,500,000 |
Business Impact Of Covid-19 - S
Business Impact Of Covid-19 - Summary of Loans Funded under PPPLF (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)Loans | |
Number of Loans | Loans | 731 |
Long-term Debt, Gross | $ 362 |
PPP Loans [Member] | |
Long-term Debt, Gross | $ 362 |
Number of Loans as a Percentage of Loans | 100.00% |
Principal Balance as a Percentage of Loans | 100.00% |
Gross Loans [Member] | |
Number of Loans as a Percentage of Loans | 35.00% |
Principal Balance as a Percentage of Loans | 26.00% |
Dental services [Member] | |
Number of Loans | Loans | 284 |
Long-term Debt, Gross | $ 42.8 |
Dental services [Member] | PPP Loans [Member] | |
Number of Loans as a Percentage of Loans | 39.00% |
Principal Balance as a Percentage of Loans | 12.00% |
Dental services [Member] | Gross Loans [Member] | |
Number of Loans as a Percentage of Loans | 14.00% |
Principal Balance as a Percentage of Loans | 3.00% |
Contractors [Member] | |
Number of Loans | Loans | 114 |
Long-term Debt, Gross | $ 138 |
Contractors [Member] | PPP Loans [Member] | |
Number of Loans as a Percentage of Loans | 16.00% |
Principal Balance as a Percentage of Loans | 38.00% |
Contractors [Member] | Gross Loans [Member] | |
Number of Loans as a Percentage of Loans | 6.00% |
Principal Balance as a Percentage of Loans | 10.00% |
Other [Member] | |
Number of Loans | Loans | 333 |
Long-term Debt, Gross | $ 181.2 |
Other [Member] | PPP Loans [Member] | |
Number of Loans as a Percentage of Loans | 46.00% |
Principal Balance as a Percentage of Loans | 50.00% |
Other [Member] | Gross Loans [Member] | |
Number of Loans as a Percentage of Loans | 15.00% |
Principal Balance as a Percentage of Loans | 13.00% |