Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 24, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Bank of Commerce Holdings | |
Entity Central Index Key | 0000702513 | |
Trading Symbol | boch | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 18,213,886 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 21,306 | $ 23,692 |
Interest-bearing deposits in other banks | 19,319 | 23,673 |
Total cash and cash equivalents | 40,625 | 47,365 |
Securities available-for-sale, at fair value | 285,819 | 256,928 |
Loans, net of deferred fees and costs | 1,038,729 | 948,178 |
Allowance for loan and lease losses | (12,445) | (12,292) |
Net loans | 1,026,284 | 935,886 |
Premises and equipment, net | 15,836 | 13,119 |
Other real estate owned | 31 | |
Life insurance | 23,449 | 22,410 |
Deferred tax asset, net | 4,791 | 7,039 |
Goodwill and core deposit intangible, net | 16,900 | 1,841 |
Other assets | 28,282 | 22,485 |
Total assets | 1,441,986 | 1,307,104 |
Liabilities: | ||
Demand - noninterest-bearing | 397,349 | 347,199 |
Demand - interest-bearing | 238,175 | 252,202 |
Money market | 300,847 | 265,093 |
Savings | 138,591 | 114,840 |
Certificates of deposit | 160,556 | 152,382 |
Total deposits | 1,235,518 | 1,131,716 |
Term debt: | ||
Junior subordinated debentures | 10,310 | 10,310 |
Other liabilities | 18,372 | 13,352 |
Total liabilities | 1,274,133 | 1,168,783 |
Commitments and contingencies (Note 7) | ||
Shareholders' equity: | ||
Common stock, no par value, 50,000,000 shares authorized: issued and outstanding - 18,213,886 as of June 30, 2019 and 16,333,502 as of December 31, 2018 | 72,087 | 52,284 |
Retained earnings | 93,363 | 89,045 |
Accumulated other comprehensive income (loss), net of tax | 2,403 | (3,008) |
Total shareholders' equity | 167,853 | 138,321 |
Total liabilities and shareholders' equity | 1,441,986 | 1,307,104 |
Term Debt [Member] | ||
Term debt: | ||
Other borrowings | 10,000 | 13,496 |
Less unamortized debt issuance costs | (67) | (91) |
Net term debt | $ 9,933 | $ 13,405 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 18,213,886 | 16,333,502 |
Common stock, outstanding (in shares) | 18,213,886 | 16,333,502 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Interest income: | |||||
Interest and fees on loans | $ 12,847 | $ 11,164 | $ 24,878 | $ 21,893 | |
Interest on taxable securities | 1,733 | 1,278 | 3,497 | 2,487 | |
Interest on tax-exempt securities | 328 | 413 | 715 | 876 | |
Interest on interest-bearing deposits in other banks | 219 | 135 | 464 | 264 | |
Total interest income | 15,127 | 12,990 | 29,554 | 25,520 | |
Interest expense: | |||||
Interest on demand - interest-bearing | 129 | 80 | 255 | 169 | |
Interest on money market | 380 | 135 | 669 | 267 | |
Interest on savings | 123 | 64 | 234 | 123 | |
Interest on certificates of deposit | 497 | 488 | 987 | 983 | |
Interest on Federal Home Loan Bank of San Francisco borrowings | 192 | 267 | 247 | 314 | |
Interest on other borrowings | 201 | 279 | 440 | 560 | |
Interest on junior subordinated debentures | 110 | 97 | 223 | 179 | |
Total interest expense | 1,632 | 1,410 | 3,055 | 2,595 | |
Net interest income | 13,495 | 11,580 | 26,499 | 22,925 | |
Provision for loan and lease losses | |||||
Net interest income after provision for loan and lease losses | 13,495 | 11,580 | 26,499 | 22,925 | |
Noninterest income: | |||||
Fees on payroll and benefit processing | 157 | 146 | 328 | 315 | |
Life insurance | 155 | 127 | 284 | 256 | |
Gain on sale of investment securities, net | 33 | 4 | 125 | 40 | |
Federal Home Loan Bank of San Francisco dividends | 124 | 95 | 245 | 175 | |
Gain on sale of OREO | 18 | 41 | 16 | ||
Other income | 108 | 115 | 196 | 225 | |
Total noninterest income | 1,100 | 962 | 2,157 | 1,944 | |
Noninterest expense: | |||||
Salaries and related benefits | 5,146 | 4,513 | 10,875 | 9,368 | |
Premises and equipment | 945 | 1,016 | 1,937 | 2,087 | |
Federal Deposit Insurance Corporation insurance premium | 95 | 93 | 195 | 189 | |
Data processing fees | 621 | 471 | 1,180 | 903 | |
Professional service fees | 535 | 314 | 838 | 659 | |
Telecommunications | 180 | 178 | 353 | 394 | |
Acquisition costs | 376 | 2,306 | |||
Other expenses | 1,713 | 1,086 | 2,850 | 2,104 | |
Total noninterest expense | 9,611 | 7,671 | 20,534 | 15,704 | |
Income before provision for income taxes | 4,984 | 4,871 | 8,122 | 9,165 | |
Provision for income taxes | 1,340 | 1,253 | 2,172 | 2,306 | |
Net income | $ 3,644 | $ 3,618 | $ 5,950 | $ 6,859 | |
Earnings per share - basic (in dollars per share) | $ 0.20 | $ 0.22 | $ 0.33 | $ 0.42 | |
Weighted average shares - basic (in shares) | [1] | 18,134 | 16,245 | 17,816 | 16,237 |
Earnings per share - diluted (in dollars per share) | $ 0.20 | $ 0.22 | $ 0.33 | $ 0.42 | |
Weighted average shares - diluted (in shares) | 18,194 | 16,325 | 17,878 | 16,319 | |
Deposit Account [Member] | |||||
Noninterest income: | |||||
Revenue from Contract with Customer | $ 187 | $ 175 | $ 355 | $ 351 | |
Credit and Debit Card [Member] | |||||
Noninterest income: | |||||
Revenue from Contract with Customer | $ 318 | $ 300 | $ 583 | $ 566 | |
[1] | Excludes unvested restricted shares because they do not have dividend or voting rights |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 3,644 | $ 3,618 | $ 5,950 | $ 6,859 |
Available-for-sale securities : | ||||
Unrealized gains (losses) arising during the period | 4,145 | (984) | 7,806 | (4,391) |
Income taxes | (1,225) | 291 | (2,307) | 1,298 |
Change in unrealized gains (losses), net of tax | 2,920 | (693) | 5,499 | (3,093) |
Reclassification adjustment for realized gains included in net income | (33) | (4) | (125) | (40) |
Income taxes | 10 | 1 | 37 | 11 |
Realized gains, net of tax | (23) | (3) | (88) | (29) |
Net increase (decrease) in unrealized gains (losses) on available-for-sale securities | 2,897 | (696) | 5,411 | (3,122) |
Other comprehensive income (loss) | 2,897 | (696) | 5,411 | (3,122) |
Comprehensive income – Bank of Commerce Holdings | $ 6,541 | $ 2,922 | $ 11,361 | $ 3,737 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 16,272,000 | |||
Balance at Dec. 31, 2017 | $ 51,830 | $ 75,700 | $ (266) | $ 127,264 |
Net income | 3,241 | 3,241 | ||
Reclassification of accumulated other comprehensive income due to tax rate change | 52 | (52) | ||
Other comprehensive loss, net of tax | (2,426) | (2,426) | ||
Comprehensive income | 815 | |||
Dividend declared on common stock | (486) | (486) | ||
Stock compensation grants (in shares) | 5,000 | |||
Stock issued under employee plans | $ 45 | 45 | ||
Restricted stock granted, net (in shares) | 20,000 | |||
Restricted stock granted, net | ||||
Stock options exercised (in shares) | 19,000 | |||
Stock options exercised | $ 113 | 113 | ||
Compensation expense associated with stock options | 3 | 3 | ||
Compensation expense associated with restricted stock, net of cash paid for shares surrendered for tax-withholding purposes | $ (32) | (32) | ||
Balance (in shares) at Mar. 31, 2018 | 16,316,000 | |||
Balance at Mar. 31, 2018 | $ 51,959 | 78,507 | (2,744) | 127,722 |
Balance (in shares) at Dec. 31, 2017 | 16,272,000 | |||
Balance at Dec. 31, 2017 | $ 51,830 | 75,700 | (266) | 127,264 |
Net income | 6,859 | |||
Other comprehensive loss, net of tax | (3,122) | |||
Comprehensive income | 3,737 | |||
Stock issued under employee plans | 45 | |||
Balance (in shares) at Jun. 30, 2018 | 16,318,000 | |||
Balance at Jun. 30, 2018 | $ 52,043 | 81,475 | (3,440) | 130,078 |
Balance (in shares) at Mar. 31, 2018 | 16,316,000 | |||
Balance at Mar. 31, 2018 | $ 51,959 | 78,507 | (2,744) | 127,722 |
Net income | 3,618 | 3,618 | ||
Other comprehensive loss, net of tax | (696) | (696) | ||
Comprehensive income | 2,922 | |||
Dividend declared on common stock | (650) | (650) | ||
Stock options exercised (in shares) | 2,000 | |||
Stock options exercised | $ 10 | 10 | ||
Compensation expense associated with stock options | 2 | 2 | ||
Compensation expense associated with restricted stock, net of cash paid for shares surrendered for tax-withholding purposes | $ 72 | 72 | ||
Balance (in shares) at Jun. 30, 2018 | 16,318,000 | |||
Balance at Jun. 30, 2018 | $ 52,043 | 81,475 | (3,440) | 130,078 |
Net income | 4,032 | 4,032 | ||
Other comprehensive loss, net of tax | (639) | (639) | ||
Comprehensive income | 3,393 | |||
Dividend declared on common stock | (650) | (650) | ||
Stock options exercised (in shares) | 12,000 | |||
Stock options exercised | $ 74 | 74 | ||
Compensation expense associated with stock options | 3 | 3 | ||
Compensation expense associated with restricted stock, net of cash paid for shares surrendered for tax-withholding purposes | $ 71 | 71 | ||
Balance (in shares) at Sep. 30, 2018 | 16,330,000 | |||
Balance at Sep. 30, 2018 | $ 52,191 | 84,857 | (4,079) | 132,969 |
Net income | 4,839 | 4,839 | ||
Other comprehensive loss, net of tax | 1,071 | 1,071 | ||
Comprehensive income | 5,910 | |||
Dividend declared on common stock | (651) | (651) | ||
Stock options exercised (in shares) | 4,000 | |||
Stock options exercised | $ 19 | 19 | ||
Compensation expense associated with restricted stock, net of cash paid for shares surrendered for tax-withholding purposes | $ 74 | $ 74 | ||
Balance (in shares) at Dec. 31, 2018 | 16,334,000 | 16,333,502 | ||
Balance at Dec. 31, 2018 | $ 52,284 | 89,045 | (3,008) | $ 138,321 |
Net income | 2,306 | 2,306 | ||
Other comprehensive loss, net of tax | 2,514 | 2,514 | ||
Comprehensive income | 4,820 | |||
Dividend declared on common stock | (725) | (725) | ||
Stock compensation grants (in shares) | 6,000 | |||
Stock issued under employee plans | $ 58 | 58 | ||
Restricted stock granted, net (in shares) | 31,000 | |||
Restricted stock granted, net | ||||
Stock options exercised (in shares) | 8,000 | |||
Stock options exercised | $ 40 | 40 | ||
Compensation expense associated with restricted stock, net of cash paid for shares surrendered for tax-withholding purposes | $ (22) | (22) | ||
Stock issued for Merchants acquisition (in shares) | 1,834,000 | |||
Stock issued for Merchants acquisition | $ 19,606 | 19,606 | ||
Balance (in shares) at Mar. 31, 2019 | 18,213,000 | |||
Balance at Mar. 31, 2019 | $ 71,966 | 90,626 | (494) | $ 162,098 |
Balance (in shares) at Dec. 31, 2018 | 16,334,000 | 16,333,502 | ||
Balance at Dec. 31, 2018 | $ 52,284 | 89,045 | (3,008) | $ 138,321 |
Net income | 5,950 | |||
Other comprehensive loss, net of tax | 5,411 | |||
Comprehensive income | 11,361 | |||
Stock issued under employee plans | $ 58 | |||
Balance (in shares) at Jun. 30, 2019 | 18,214,000 | 18,213,886 | ||
Balance at Jun. 30, 2019 | $ 72,087 | 93,363 | 2,403 | $ 167,853 |
Balance (in shares) at Mar. 31, 2019 | 18,213,000 | |||
Balance at Mar. 31, 2019 | $ 71,966 | 90,626 | (494) | 162,098 |
Net income | 3,644 | 3,644 | ||
Other comprehensive loss, net of tax | 2,897 | 2,897 | ||
Comprehensive income | 6,541 | |||
Dividend declared on common stock | (907) | (907) | ||
Restricted stock granted, net (in shares) | 1,000 | |||
Restricted stock granted, net | ||||
Compensation expense associated with restricted stock, net of cash paid for shares surrendered for tax-withholding purposes | $ 121 | $ 121 | ||
Balance (in shares) at Jun. 30, 2019 | 18,214,000 | 18,213,886 | ||
Balance at Jun. 30, 2019 | $ 72,087 | $ 93,363 | $ 2,403 | $ 167,853 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Dividend on common stock (in dollars per share) | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.03 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 5,950 | $ 6,859 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for unfunded commitments | (100) | |
Provision for depreciation and amortization | 741 | 945 |
Amortization of core deposit intangible | 337 | 110 |
Amortization of debt issuance costs | 24 | 23 |
Compensation expense associated with stock options | 5 | |
Compensation expense associated with restricted stock | 193 | 143 |
Tax benefits from vesting of restricted stock | (6) | (35) |
Net gain on sale or call of securities | (125) | (40) |
Amortization of investment premiums and accretion of discounts, net | 677 | 963 |
Amortization of premiums and accretion of discounts on acquired loans, net | (299) | (343) |
Gain on disposal of fixed assets | (5) | |
Gain on sale of OREO | (41) | (16) |
Increase in cash surrender value of life insurance | (284) | (256) |
Increase (decrease) in deferred compensation and salary continuation plans | 19 | (36) |
Increase in deferred loan fees and costs | (78) | (53) |
Decrease in other assets | 884 | 386 |
Decrease in other liabilities | (28) | (767) |
Net cash provided by operating activities | 7,864 | 7,883 |
Cash flows from investing activities: | ||
Proceeds from maturities and payments of available-for-sale securities | 24,616 | 14,662 |
Proceeds from sale of available-for-sale securities | 85,740 | 20,505 |
Purchases of available-for-sale securities | (24,778) | (21,501) |
Investment in qualified affordable housing partnerships | (31) | |
Net purchase of Federal Home Loan Bank of San Francisco stock | (34) | (1,355) |
Loan originations, net of principal repayments | (22,929) | (61,096) |
Net repayment on loan pools | 18,171 | 4,781 |
Purchase of premises and equipment | (1,262) | (227) |
Proceeds from the sale of OREO | 87 | 51 |
Acquisition of Merchants Holding Company, net of cash paid | (2,875) | |
Net cash provided (used) by investing activities | 76,736 | (44,211) |
Cash flows from financing activities: | ||
Net decrease in demand, money market and savings | (56,585) | (25,873) |
Net decrease in certificates of deposit | (29,829) | (22,330) |
Advances on term debt | 180,000 | 210,000 |
Repayment of term debt | (183,496) | (151,800) |
Proceeds from stock options exercised | 40 | 123 |
Cash paid for shares surrendered for tax-withholding purposes | (94) | (103) |
Cash dividends paid on common stock | (1,376) | (973) |
Net cash (used) provided by financing activities | (91,340) | 9,044 |
Net decrease in cash and cash equivalents | (6,740) | (27,284) |
Cash and cash equivalents at beginning of year | 47,365 | 66,970 |
Cash and cash equivalents at end of period | 40,625 | 39,686 |
Cash paid during the period for: | ||
Income taxes | 2,562 | 2,725 |
Interest | 3,033 | 2,560 |
Cash paid for operating leases | 432 | 419 |
Supplemental disclosures of non cash investing activities: | ||
Transfer of loans to other real estate owned | 15 | 140 |
Unrealized gain (loss) on investment securities available-for-sale | 7,681 | (4,431) |
Changes in net deferred tax asset related to changes in unrealized (gain) loss on investment securities available-for-sale | (2,270) | 1,309 |
Changes in accumulated other comprehensive income due to unrealized gain (loss) on investment securities available-for-sale, net of tax | 5,411 | (3,122) |
Reclassification of accumulated other comprehensive income due to tax rate change | 52 | |
Supplemental disclosures of non cash financing activities: | ||
Stock issued under employee plans | 58 | 45 |
Cash dividend declared on common shares and payable after period-end | 907 | 650 |
Right-of-use lease asset recorded on adoption of ASU No. 2016-02 | 3,998 | |
Lease liability recorded on adoption of ASU No. 2016-02 | 4,363 | |
Transactions related to the acquisition of Merchants Holding Company: | ||
Assets acquired - fair value | 215,018 | |
Goodwill | 11,043 | |
Liabilities assumed - fair value | $ 191,154 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 1. Bank of Commerce Holdings (“Company,” “Holding Company,” “we,” or “us”), is a corporation organized under the laws of California and a bank holding company (“BHC”) registered under the Bank Holding Company Act of 1956, as amended (“BHC Act”) with its principal offices in Sacramento, California. The Holding Company’s principal business is to serve as a holding company for Merchants Bank of Commerce (the “Bank” and together with the Holding Company, the “Company”) and for Bank of Commerce Mortgage (inactive). As previously announced, the Bank, which previously operated under three separate names, changed its name for all operations to Merchants Bank of Commerce effective May 20, 2019. We have an unconsolidated subsidiary in Bank of Commerce Holdings Trust II. The Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 are derived from the unaudited interim consolidated financial statements, audited consolidated financial statements, and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations. The Company believes that all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included and the disclosures made are adequate to make the information not misleading. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with prevailing practices within the banking and securities industries. In preparing such consolidated financial statements, management is required to make certain estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the Balance Sheets and the reported amounts of revenues and expenses for the reporting periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the valuation and impairment of investment securities, the determination of the allowance for loan and lease losses (“ALLL”), income taxes, the valuation of goodwill and Other Real Estate Owned (“OREO”), and fair value measurements. Certain amounts for prior periods have been reclassified to conform to the current financial statement presentation. The results of reclassifications are not considered material and have no effect on previously reported net income or shareholders' equity. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in Bank of Commerce Holdings 2018 Annual Report on Form 10 -K. The consolidated results of operations and cash flows for the 2019 interim period shown in this report is not necessarily indicative of the results for any future interim period or the entire fiscal year. Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of the Holding Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As of June 30, 2019 and December 31, 2018, the Company had one wholly-owned trust formed in 2005 to issue trust preferred securities and related common securities. We have not consolidated the accounts of the Trust in our Consolidated Financial Statements in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB”), Consolidation (“ASC 810” ). We are not considered the primary beneficiary of the Trust (variable interest entity). As a result, the junior subordinated debentures issued by the Holding Company to the Trust are reflected on the Company’s Consolidated Balance Sheets . Leases We determine if an arrangement is a lease at inception. Operating leases are included in Other Assets and Other Liabilities in our Consolidated Balance Sheets . Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an incremental borrowing rate we use the borrowing rates for terms similar to the lease terms available under our existing line of credit with the Federal Home Loan Bank of San Francisco as our incremental borrowing rate in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease which we recognize when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Application of new accounting guidance ASU No. 2016 - 02 Description - In February of 2016, the FASB issued ASU No. 2016 - 02, Leases (Topic 8 4 2 ) . This Update was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements on a retrospective basis. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, Elements of Financial Statements, and, therefore, recognition of those lease assets and lease liabilities represents an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. Methods and timing of adoption – For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In July of 2018, the FASB issued ASU No. 2018 - 11, Leases (Topic 8 4 2 ) . The standard contained improvements to ASU No. 2016 - 02 that permitted presentation on a prospective basis. Financial statement impact – We implemented the new leasing standard on January 1, 2019 on a prospective basis and recorded a new lease asset and related lease liability of approximately $4.4 million related to our current operating leases. The right-of-use asset was also reduced by $458 thousand for amounts recognized previously as part of the single lease cost. |
Note 2 - Common Stock Outstandi
Note 2 - Common Stock Outstanding and Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 2. On January 31, 2019, 1,834,142 $15.3 10% 10 Acquisition Notes to Consolidated Financial Statements Basic earnings per share excludes dilution and is computed by dividing income by the weighted-average number of common shares outstanding for the period, excluding unvested restricted stock awards which do not not The following is a computation of basic and diluted earnings per share for the three six June 30, 2019 2018. For the Three Months Ended For the Six Months Ended (Amounts in thousands, except per share information) June 30, June 30, Earnings Per Share 2019 2018 2019 2018 Numerators: Net income $ 3,644 $ 3,618 $ 5,950 $ 6,859 Denominators: Weighted average number of common shares outstanding - basic (1) 18,134 16,245 17,816 16,237 Effect of potentially dilutive common shares (2) 60 80 62 82 Weighted average number of common shares outstanding - diluted 18,194 16,325 17,878 16,319 Earnings per common share: Basic $ 0.20 $ 0.22 $ 0.33 $ 0.42 Diluted $ 0.20 $ 0.22 $ 0.33 $ 0.42 Anti-dilutive options not included in diluted earnings per share calculation — — — — Anti-dilutive restricted shares not included in diluted earnings per share calculation — — — — ( 1 not ( 2 |
Note 3 - Securities
Note 3 - Securities | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3. The following tables present the amortized costs, unrealized gains, unrealized losses and estimated fair values of our investment securities as of June 30, 2019, December 31, 2018. As of June 30, 2019 Gross Gross Amortized Unrealized Unrealized Estimated (Amounts in thousands) Cost Gain Loss Fair Value Available-for-sale securities: U.S. government & agencies $ 44,334 $ 531 $ (28 ) $ 44,837 Obligations of state and political subdivisions 43,585 1,434 (16 ) 45,003 Residential mortgage-backed securities and collateralized mortgage obligations 166,683 2,068 (666 ) 168,085 Corporate securities 3,014 — (36 ) 2,978 Commercial mortgage-backed securities 24,744 260 (136 ) 24,868 Other asset-backed securities 48 — — 48 Total $ 282,408 $ 4,293 $ (882 ) $ 285,819 As of December 31, 2018 Gross Gross Amortized Unrealized Unrealized Estimated (Amounts in thousands) Cost Gain Loss Fair Value Available-for-sale securities: U.S. government & agencies $ 40,215 $ 202 $ (330 ) $ 40,087 Obligations of state and political subdivisions 50,037 1,082 (589 ) 50,530 Residential mortgage-backed securities and collateralized mortgage obligations 142,355 129 (3,981 ) 138,503 Corporate securities 3,022 — (100 ) 2,922 Commercial mortgage-backed securities 25,446 17 (701 ) 24,762 Other asset-backed securities 123 1 — 124 Total $ 261,198 $ 1,431 $ (5,701 ) $ 256,928 The following table presents the expected maturities of investment securities at June 30, 2019. Available-For-Sale (Amounts in thousands) Amortized Cost Fair Value Amounts maturing in: One year or less $ 3,894 $ 3,895 After one year through five years 125,541 127,308 After five years through ten years 84,830 85,406 After ten years 68,143 69,210 Total $ 282,408 $ 285,819 The amortized cost and fair value of residential mortgage-backed securities, collateralized mortgage obligations and commercial mortgage securities are presented by their expected average life, rather than contractual maturity, because the underlying loans may At June 30, 2019 December 31, 2018 $74.3 $68.8 The following table presents the cash proceeds from sales of investment securities and the associated gross realized gains and gross realized losses that have been included in earnings for the three six June 30, 2019 2018. Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Proceeds from sales of investment securities $ 18,338 $ 1,107 $ 85,740 $ 20,505 Gross realized gains on sales of investment securities: U.S. government & agencies $ 6 $ — $ 39 $ — Obligations of state and political subdivisions 115 4 294 156 Residential mortgage-backed securities and collateralized mortgage obligations 16 — 64 — Commercial mortgage-backed securities 2 — 2 — Total gross realized gains on sales of investment securities 139 4 399 156 Gross realized losses on sales of investment securities: U.S. government & agencies — — (4 ) — Obligations of state and political subdivisions (12 ) — (90 ) (71 ) Residential mortgage-backed securities and collateralized mortgage obligations (64 ) — (149 ) — Commercial mortgage-backed securities (30 ) — (31 ) — Other asset-backed securities — — — (45 ) Total gross realized losses on sales of investment securities (106 ) — (274 ) (116 ) Gain on sales of investment securities, net $ 33 $ 4 $ 125 $ 40 Investment securities that were in an unrealized loss position as of June 30, 2019 December 31, 2018 As of June 30, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Amounts in thousands) Value Losses Value Losses Value Losses Available-for-sale securities: U.S. government & agencies $ 3,462 $ (22 ) $ 1,958 $ (6 ) $ 5,420 $ (28 ) Obligations of states and political subdivisions 409 (1 ) 2,070 (15 ) 2,479 (16 ) Residential mortgage-backed securities and collateralized mortgage obligations 4,811 (11 ) 56,087 (655 ) 60,898 (666 ) Corporate securities — — 2,978 (36 ) 2,978 (36 ) Commercial mortgage-backed securities — — 8,812 (136 ) 8,812 (136 ) Total temporarily impaired securities $ 8,682 $ (34 ) $ 71,905 $ (848 ) $ 80,587 $ (882 ) As of December 31, 2018 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Amounts in thousands) Value Loss Value Loss Value Loss Available-for-sale securities: U.S. government & agencies $ 7,223 $ (39 ) $ 12,274 $ (291 ) $ 19,497 $ (330 ) Obligations of states and political subdivisions 5,545 (40 ) 16,320 (549 ) 21,865 (589 ) Residential mortgage-backed securities and collateralized mortgage obligations 21,791 (183 ) 93,038 (3,798 ) 114,829 (3,981 ) Corporate securities — — 2,922 (100 ) 2,922 (100 ) Commercial mortgage-backed securities 1,548 (7 ) 20,176 (694 ) 21,724 (701 ) Total temporarily impaired securities $ 36,107 $ (269 ) $ 144,730 $ (5,432 ) $ 180,837 $ (5,701 ) At June 30, 2019 December 31, 2018, 69 163, not A3/A not no not The following table presents the characteristics of our securities that are in unrealized loss positions at June 30, 2019 December 31, 2018. Characteristics of securities in unrealized loss positions at Available-for-sale securities: June 30, 2019 December 31, 2018 U.S. government & agencies Direct obligations of the U.S. Government or obligations guaranteed by U.S. Government agencies. Obligations of states and political subdivisions General obligation issuances or revenue securities secured by revenues from specific sources issued by municipalities and political subdivisions located within the U.S. Residential mortgage-backed securities and collateralized mortgage obligations Obligations of U.S. government sponsored entities or non-governmental entities collateralized by high quality mortgages on residential properties. Issuances by non-governmental entities usually include good credit enhancements. Of the residential mortgage-backed securities and collateralized mortgage obligations that we owned at June 30, 2019 December 31, 2018, 82% 66% Corporate securities Debt obligations generally issued or guaranteed by large U.S. corporate institutions. Commercial mortgage-backed securities Obligations of U.S. government sponsored entities or non-governmental entities collateralized by high quality mortgages on commercial properties. Issuances by non-governmental entities usually include good credit enhancements. Of the commercial mortgage-backed securities that we owned at June 30, 2019 December 31, 2018, 95% 90% Other asset-backed securities Obligations secured by high quality loans with good credit enhancements issued by non-governmental issuers. |
Note 4 - Loans
Note 4 - Loans | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4. Outstanding loan balances consisted of the following at June 30, 2019, December 31, 2018. (Amounts in thousands) June 30, December 31, Loan Portfolio 2019 2018 Commercial $ 152,303 $ 135,543 Commercial real estate: Real estate - construction and land development 37,685 22,563 Real estate - commercial non-owner occupied 468,706 433,708 Real estate - commercial owner occupied 210,711 204,622 Residential real estate: Real estate - residential - Individual Tax Identification Number (“ITIN”) 35,162 37,446 Real estate - residential - 1-4 family mortgage 67,092 34,366 Real estate - residential - equity lines 23,656 26,958 Consumer and other 41,409 51,045 Gross loans 1,036,724 946,251 Deferred fees and costs 2,005 1,927 Loans, net of deferred fees and costs 1,038,729 948,178 Allowance for loan and lease losses (12,445 ) (12,292 ) Net loans $ 1,026,284 $ 935,886 Certain loans are pledged as collateral for lines of credit with the Federal Home Loan Bank of San Francisco and the Federal Reserve Bank. Pledged loans totaled $517.6 $490.2 June 30, 2019 December 31, 2018, When we purchase loans, they are typically purchased at a discount to enhance yield and compensate for credit risk. We have no June 30, 2019, December 31, 2018. $1.9 $2.5 June 30, 2019, December 31, 2018. Gross loan balances in the table above at June 30, 2019 $2.0 first 2019. $195 $243 three six June 30, 2019, Past Due Loans Past due loans (gross), segregated by loan portfolio were as follows, as of June 30, 2019, December 31, 2018. Recorded (Amounts in thousands) 30-59 60-89 90 or Greater Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and June 30, 2019 Due Due Due Due Current Total Accruing Commercial $ 31 $ 56 $ — $ 87 $ 152,216 $ 152,303 $ — Commercial real estate: Real estate - construction and land development — — — — 37,685 37,685 — Real estate - commercial non-owner occupied 10,315 374 — 10,689 458,017 468,706 — Real estate - commercial owner occupied — — — — 210,711 210,711 — Residential real estate: Real estate - residential - ITIN 200 181 213 594 34,568 35,162 — Real estate - residential - 1-4 family mortgage — — — — 67,092 67,092 — Real estate - residential - equity lines 165 — — 165 23,491 23,656 — Consumer and other 164 41 — 205 41,204 41,409 — Total $ 10,875 $ 652 $ 213 $ 11,740 $ 1,024,984 $ 1,036,724 $ — Recorded (Amounts in thousands) 30-59 60-89 90 or Greater Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and December 31, 2018 Due Due Due Due Current Total Accruing Commercial $ — $ — $ — $ — $ 135,543 $ 135,543 $ — Commercial real estate: Real estate - construction and land development — — — — 22,563 22,563 — Real estate - commercial non-owner occupied 10,878 — 548 11,426 422,282 433,708 — Real estate - commercial owner occupied 688 — — 688 203,934 204,622 — Residential real estate: Real estate - residential - ITIN 184 279 259 722 36,724 37,446 — Real estate - residential - 1-4 family mortgage — — 185 185 34,181 34,366 — Real estate - residential - equity lines 90 — — 90 26,868 26,958 — Consumer and other 534 263 — 797 50,248 51,045 — Total $ 12,374 $ 542 $ 992 $ 13,908 $ 932,343 $ 946,251 $ — Nonaccrual Loans Nonaccrual loans, segregated by loan portfolio, were as follows as of June 30, 2019 December 31, 2018. (Amounts in thousands) June 30, December 31, Nonaccrual Loans 2019 2018 Commercial $ 194 $ 959 Commercial real estate: Real estate - commercial non-owner occupied 10,690 548 Residential real estate: Real estate - residential - ITIN 2,389 2,388 Real estate - residential - 1-4 family mortgage 217 185 Real estate - residential - equity lines — 43 Consumer and other 22 23 Total $ 13,512 $ 4,146 Had nonaccrual loans performed in accordance with their contractual terms, we would have recognized additional interest income, net of tax, of approximately $229 $43 three June 30, 2019 2018, $376 $84 six June 30, 2019 2018, Impaired Loans A loan is considered impaired when, based on current information and events, we determine it is probable that we will not June 30, 2019 December 31, 2018. As of June 30, 2019 Unpaid (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 227 $ 522 $ — Commercial real estate: Real estate - commercial non-owner occupied 10,690 11,136 — Residential real estate: Real estate - residential - ITIN 6,227 7,917 — Real estate - residential - 1-4 family mortgage 217 324 — Total with no related allowance recorded $ 17,361 $ 19,899 $ — With an allowance recorded: Commercial $ 1,059 $ 1,060 $ 385 Commercial real estate: Real estate - commercial non-owner occupied 791 791 169 Residential real estate: Real estate - residential - ITIN 462 462 45 Real estate - residential - equity lines 242 242 121 Consumer and other 22 22 7 Total with an allowance recorded $ 2,576 $ 2,577 $ 727 By loan portfolio: Commercial $ 1,286 $ 1,582 $ 385 Commercial real estate 11,481 11,927 169 Residential real estate 7,148 8,945 166 Consumer and other 22 22 7 Total impaired loans $ 19,937 $ 22,476 $ 727 As of December 31, 2018 (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 51 $ 69 $ — Commercial real estate: Real estate - commercial non-owner occupied 548 548 — Residential real estate: Real estate - residential - ITIN 6,138 7,676 — Real estate - residential - 1-4 family mortgage 185 223 — Real estate - residential - equity lines 43 48 — Total with no related allowance recorded $ 6,965 $ 8,564 $ — With an allowance recorded: Commercial $ 2,132 $ 2,256 $ 748 Commercial real estate: Real estate - commercial non-owner occupied 795 795 209 Residential real estate: Real estate - residential - ITIN 734 772 91 Real estate - residential - equity lines 363 363 182 Consumer and other 23 23 7 Total with an allowance recorded $ 4,047 $ 4,209 $ 1,237 By loan portfolio: Commercial $ 2,183 $ 2,325 $ 748 Commercial real estate 1,343 1,343 209 Residential real estate 7,463 9,082 273 Consumer and other 23 23 7 Total impaired loans $ 11,012 $ 12,773 $ 1,237 The following tables summarize average recorded investment and interest income recognized on impaired loans by loan portfolio for the three six June 30, 2019 2018. Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Average Interest Average Interest (Amounts in thousands) Recorded Income Recorded Income Average Recorded Investment and Interest Income Investment Recognized Investment Recognized Commercial $ 1,304 $ 16 $ 2,681 $ 20 Commercial real estate: Real estate - commercial non-owner occupied 11,622 11 799 12 Residential real estate: Real estate - residential - ITIN 6,719 41 7,237 42 Real estate - residential - 1-4 family mortgage 192 — 185 — Real estate - residential - equity lines 277 5 418 5 Consumer and other 22 — 34 — Total $ 20,136 $ 73 $ 11,354 $ 79 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Average Interest Average Interest (Amounts in thousands) Recorded Income Recorded Income Average Recorded Investment and Interest Income Investment Recognized Investment Recognized Commercial $ 1,662 $ 32 $ 2,635 $ 41 Commercial real estate: Real estate - commercial non-owner occupied 10,017 23 801 23 Residential real estate: Real estate - residential - ITIN 6,797 83 7,331 83 Real estate - residential - 1-4 family mortgage 188 — 255 — Real estate - residential - equity lines 340 10 420 10 Consumer and other 22 — 34 — Total $ 19,026 $ 148 $ 11,476 $ 157 The impaired loans on which these interest income amounts were recognized are primarily accruing troubled debt restructured loans. Loans are reported as troubled debt restructurings when we grant a concession(s) to a borrower experiencing financial difficulties that we would not not Troubled Debt Restructurings At June 30, 2019 December 31, 2018, $6.4 $6.9 For a restructured loan to be on accrual status, the loan’s collateral coverage must generally be greater than or equal to 100% December 31, 2018, one $313 June 30, 2019, no As of June 30, 2019, $8.2 $9.6 December 31, 2018. June 30, 2019, 103 101 0.80% June 30, 2019, 1.01% December 31, 2018. The types of modifications offered can generally be described in the following categories: Maturity Payment Deferral The following table presents the period ended balances of newly restructured loans and the types of modifications that occurred during the three six June 30, 2019. no three six June 30, 2018. For the Three Months Ended For the Six Months Ended (Amounts in thousands) Troubled Debt Restructuring Maturity Payment Deferral Total Maturity Payment Deferral Total Commercial $ 86 $ — $ 86 $ 86 $ — $ 86 Residential real estate: Real estate - residential - equity lines — 39 39 — 39 39 Total $ 86 $ 39 $ 125 $ 86 $ 39 $ 125 For the three six June 30, 2019, For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Amounts in thousands) Number of Recorded Recorded Number of Recorded Recorded Troubled Debt Restructurings Contracts Investment Investment Contracts Investment Investment Commercial 1 $ 99 $ 99 1 $ 99 $ 99 Residential real estate: Real estate - residential - equity lines 1 39 39 1 39 39 Total 2 $ 138 $ 138 2 $ 138 $ 138 There were no twelve three six June 30, 2019. Performing and Nonperforming Loans We define a performing loan as a loan where any installment of principal or interest is not 90 may 90 not June 30, 2019 December 31, 2018. (Amounts in thousands) June 30, 2019 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 152,109 $ 194 $ 152,303 Commercial real estate: Real estate - construction and land development 37,685 — 37,685 Real estate - commercial non-owner occupied 458,016 10,690 468,706 Real estate - commercial owner occupied 210,711 — 210,711 Residential real estate: Real estate - residential - ITIN 32,773 2,389 35,162 Real estate - residential - 1-4 family mortgage 66,875 217 67,092 Real estate - residential - equity lines 23,656 — 23,656 Consumer and other 41,387 22 41,409 Total $ 1,023,212 $ 13,512 $ 1,036,724 (Amounts in thousands) December 31, 2018 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 134,584 $ 959 $ 135,543 Commercial real estate: Real estate - construction and land development 22,563 — 22,563 Real estate - commercial non-owner occupied 433,160 548 433,708 Real estate - commercial owner occupied 204,622 — 204,622 Residential real estate: Real estate - residential - ITIN 35,058 2,388 37,446 Real estate - residential - 1-4 family mortgage 34,181 185 34,366 Real estate - residential - equity lines 26,915 43 26,958 Consumer and other 51,022 23 51,045 Total $ 942,105 $ 4,146 $ 946,251 Credit Quality Ratings Management assigns a credit quality rating (risk grade) to each loan. The foundation or primary factor in determining the appropriate credit quality rating is the degree of a debtor’s willingness and ability to perform as agreed. In conjunction with evaluating the performing versus nonperforming nature of our loan portfolio, management evaluates the following credit risk and other relevant factors in determining the appropriate credit quality indicator (rating) for each loan portfolio: Pass Grade: no may ● Strong Cash Flows – borrower’s cash flows must meet or exceed our minimum debt service coverage ratio. ● Collateral Margin – generally, the borrower must have pledged an acceptable collateral class with an adequate collateral margin. ● Qualitative Factors – in addition to meeting our minimum cash flow and collateral requirements, a number of other qualitative factors are also factored into assigning a Pass Grade including the borrower’s level of leverage (debt to equity), prospects, history and experience in their industry, credit history, and any other relevant factors including a borrower’s character. Those borrowers who qualify for unsecured loans must fully demonstrate above average cash flows and strong secondary sources of repayment to mitigate the lack of unpledged collateral. Watch Grade: may one not ● The primary source of repayment may ● The primary source of repayment is adequate, but the secondary source of repayment is insufficient ● In-depth financial analysis would compare to the lower quartile in two ● Volatile or deteriorating collateral ● Management decisions may ● Delinquencies in bank credits or other financial/trade creditors ● Frequent overdrafts ● Significant change in management/ownership Special Mention Grade: may not not not ● Inadequate or incomplete loan documentation or perfection of collateral, or any other deviation from prudent lending practices ● Credit is structured in a manner in which the timing of the repayment source does not ● Current economic or market conditions exist which may ● Adverse trends in the borrower's operations or continued deterioration in the borrower’s financial condition that has not ● The borrower is less than cooperative or unable to produce current and adequate financial information Substandard Grade: not not may may not The following represents, but is not not ● Sustained or substantial deteriorating financial trends, ● Unresolved management problems, ● Collateral is insufficient to repay debt; collateral is not ● Improper perfection of lien position, which is not ● Unanticipated and severe decline in market values, ● High reliance on secondary source of repayment, ● Legal proceedings, such as bankruptcy or a divorce, which has substantially decreased the borrower’s capacity to repay the debt, ● Fraud committed by the borrower, ● IRS liens that take precedence, ● Forfeiture statutes for assets involved in criminal activities, ● Protracted repayment terms outside of policy that are for longer than the same type of credit in our portfolio, ● Any other relevant quantitative or qualitative factor that negatively affects the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Doubtful Grade: one may may may not ● Proposed merger(s), ● Acquisition or liquidation procedures, ● Capital injection, ● Perfecting liens on additional collateral, ● Refinancing plans. Generally, a Doubtful Grade does not six six The following tables summarize loans by internal risk grades and by loan class as of June 30, 2019 December 31, 2018. As of June 30, 2019 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 142,317 $ 7,889 $ 502 $ 1,595 $ — $ 152,303 Commercial real estate: Real estate - construction and land development 37,663 22 — — — 37,685 Real estate - commercial non-owner occupied 434,340 9,354 12,416 12,596 — 468,706 Real estate - commercial owner occupied 194,406 5,217 — 11,088 — 210,711 Residential real estate: Real estate - residential - ITIN 29,721 — — 5,441 — 35,162 Real estate - residential - 1-4 family mortgage 65,352 1,050 473 217 — 67,092 Real estate - residential - equity lines 23,568 — — 88 — 23,656 Consumer and other 41,383 — — 26 — 41,409 Total $ 968,750 $ 23,532 $ 13,391 $ 31,051 $ — $ 1,036,724 As of December 31, 2018 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 118,643 $ 15,247 $ — $ 1,653 $ — $ 135,543 Commercial real estate: Real estate - construction and land development 22,539 24 — — — 22,563 Real estate - commercial non-owner occupied 409,157 21,698 — 2,853 — 433,708 Real estate - commercial owner occupied 179,154 14,075 — 11,393 — 204,622 Residential real estate: Real estate - residential - ITIN 31,805 — — 5,641 — 37,446 Real estate - residential - 1-4 family mortgage 33,388 793 — 185 — 34,366 Real estate - residential - equity lines 25,336 1,313 — 309 — 26,958 Consumer and other 51,016 — — 29 — 51,045 Total $ 871,038 $ 53,150 $ — $ 22,063 $ — $ 946,251 The recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure was $229 June 30, 2019. Allowance for Loan and Lease Losses The following tables summarize the ALLL by portfolio for the three six June 30, 2019 2018. For the Three Months Ended June 30, 2019 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,479 $ 6,956 $ 1,211 $ 1,056 $ 540 $ 12,242 Charge-offs (145 ) (233 ) (71 ) (210 ) — (659 ) Recoveries 757 — 18 87 — 862 Provision (987 ) 875 (88 ) 137 63 — Ending balance $ 2,104 $ 7,598 $ 1,070 $ 1,070 $ 603 $ 12,445 For the Three Months Ended June 30, 2018 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,298 $ 6,898 $ 1,149 $ 1,473 $ 477 $ 12,295 Charge-offs (133 ) — (49 ) (200 ) — (382 ) Recoveries 350 — 47 78 — 475 Provision (73 ) 193 (36 ) (34 ) (50 ) — Ending balance $ 2,442 $ 7,091 $ 1,111 $ 1,317 $ 427 $ 12,388 For the Six Months Ended June 30, 2019 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,205 $ 7,116 $ 1,173 $ 1,356 $ 442 $ 12,292 Charge-offs (145 ) (233 ) (139 ) (490 ) — (1,007 ) Recoveries 911 — 100 149 — 1,160 Provision (867 ) 715 (64 ) 55 161 — Ending balance $ 2,104 $ 7,598 $ 1,070 $ 1,070 $ 603 $ 12,445 For the Six Months Ended June 30, 2018 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,397 $ 6,514 $ 1,169 $ 1,435 $ 410 $ 11,925 Charge-offs (133 ) — (163 ) (475 ) — (771 ) Recoveries 803 — 293 138 — 1,234 Provision (625 ) 577 (188 ) 219 17 — Ending balance $ 2,442 $ 7,091 $ 1,111 $ 1,317 $ 427 $ 12,388 The following tables summarize the ALLL and the recorded investment in loans and leases as of June 30, 2019 December 31, 2018. As of June 30, 2019 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 385 $ 169 $ 166 $ 7 $ — $ 727 Collectively evaluated for impairment 1,719 7,429 904 1,063 603 11,718 Total $ 2,104 $ 7,598 $ 1,070 $ 1,070 $ 603 $ 12,445 Gross loans: Individually evaluated for impairment $ 1,286 $ 11,481 $ 7,148 $ 22 $ — $ 19,937 Collectively evaluated for impairment 151,017 705,621 118,762 41,387 — 1,016,787 Total gross loans $ 152,303 $ 717,102 $ 125,910 $ 41,409 $ — $ 1,036,724 As of December 31, 2018 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 748 $ 209 $ 273 $ 7 $ — $ 1,237 Collectively evaluated for impairment 1,457 6,907 900 1,349 442 11,055 Total $ 2,205 $ 7,116 $ 1,173 $ 1,356 $ 442 $ 12,292 Gross loans: Individually evaluated for impairment $ 2,183 $ 1,343 $ 7,463 $ 23 $ — $ 11,012 Collectively evaluated for impairment 133,360 659,550 91,307 51,022 — 935,239 Total gross loans $ 135,543 $ 660,893 $ 98,770 $ 51,045 $ — $ 946,251 The ALLL totaled $12.4 1.20% June 30, 2019 $12.3 1.30% December 31, 2018. June 30, 2019 December 31, 2018, $263.3 $235.8 Other Liabilities Consolidated Balance Sheets June 30, 2019 December 31, 2018 $595 $695 The ALLL is based upon estimates of future loan and lease losses and is maintained at a level considered adequate to provide for probable losses inherent in the outstanding loan portfolio. Our ALLL methodology incorporates management’s current judgments, and reflects management’s estimate of future loan and lease losses and risks inherent in the loan portfolio in accordance with ASC Topic 450 Contingencies 310 Receivables The allowance is increased by provisions charged to expense and adjusted for charge-offs or recoveries. In periodic evaluations of the adequacy of the allowance may Management monitors delinquent loans continuously and identifies problem loans to be evaluated individually for impairment testing. For loans that are determined impaired, a formal impairment measurement is performed at least quarterly on a loan-by-loan basis. Our method for assessing the appropriateness of the allowance includes specific allowances for identified problem loans, an allowance factor for categories of credits and allowances for changing environmental factors (e.g., portfolio trends, concentration of credit, growth, economic factors). Allowances for identified problem loans are based on specific analysis of individual credits. Loss estimation factors for loan categories are based on analysis of local economic factors applicable to each loan category. Allowances for changing environmental factors are management’s best estimate of the probable impact these changes have had on the loan portfolio as a whole. We believe that the ALLL was adequate as of June 30, 2019. no not may As of June 30, 2019, 81% may may may Impaired loans are individually evaluated for impairment. If the measurement of each impaired loans’ value is less than the recorded investment in the loan, we recognize this impairment and adjust the carrying value of the loan to fair value through the ALLL. For collateral dependent loans, this can be accomplished by charging off the impaired portion of the loan based on the underlying value of the collateral. For non-collateral dependent loans, we establish a specific component within the ALLL based on the present value of the future cash flows. If we determine the sources of repayment will not The unallocated portion of the ALLL provides for coverage of credit losses inherent in the loan portfolio but not June 30, 2019, 5% 4% December 31, 2018. While the ALLL composition is an indication of specific amounts or loan categories in which future charge-offs may may We have lending policies and procedures in place with the objective of optimizing loan income within an accepted risk tolerance level. We review and approve these policies and procedures annually. Monitoring and reporting systems supplement the review process with regular frequency as related to loan production, loan quality, concentrations of credit, potential problem loans, loan delinquencies, and nonperforming loans.The following is a brief summary, by loan type, of management’s evaluation of the general risk characteristics and underwriting standards: Commercial Loans may may Most commercial loans are generally secured by the assets being financed and other business assets such as accounts receivable or inventory. Management may may may Commercial Real Estate (“CRE”) Loans The properties securing the CRE portfolio are diverse in terms of type and primary source of repayment. This diversity helps reduce our exposure to adverse economic events that affect any single industry. We monitor and evaluate CRE loans based on occupancy status (investor versus owner occupied), collateral, geography, and risk grade criteria. Generally, CRE loans are made to developers and builders that are secured by non-owner occupied properties require the borrower to have had an existing relationship with the Company and a proven record of success. Construction loans are underwritten utilizing feasibility studies, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of cost and value associated with the complete project (as-is value). These estimates may may Residential Real Estate Loans not We originate some single family residence construction loans. The loan amounts are no $1 12 may Consumer Loans – third not 80%, one We maintain an independent loan review program that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to the Board of Directors, Loan Committee and Audit Committee. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as our policies and procedures. Management’s continuing evaluation of all known relevant quantitative and qualitative internal and external risk factors provides the foundation for the three 1 450, 450” 2 450 3 310, 310” three may not not no not may Our loan portfolio is evaluated by general loan class including commercial, commercial real estate (which includes construction and other real estate), residential real estate (which includes 1 4 450, General valuation allowances, as prescribed by ASC 450, |
Note 5 - Qualified Affordable H
Note 5 - Qualified Affordable Housing Partnership Investments | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Qualified Affordable Housing Project Investments [Text Block] | NOTE 5. We have invested in four 18 3% 5% None Our investments in Qualified Affordable Housing Partnerships totaled $2.8 June 30, 2019. Other Assets $343 Other Liabilities Consolidated Balance Sheets Consolidated Statements of Income The following tables present our original investment in LIHTC partnerships, the current recorded investment balance, and the unfunded liability balance of each investment at June 30, 2019 December 31, 2018. six June 30, 2019 2018. At June 30, 2019 For the Six Months Ended June 30, 2019 Original Current Unfunded Tax Credits Amortization Net (Amounts in thousands) Investment Recorded Liability and of Income Tax Qualified Affordable Housing Partnerships Value Investment Obligation Benefits Investments Benefit (Expense) Raymond James California Housing Opportunities Fund II $ 2,000 $ 932 $ 28 $ 100 $ 90 $ 10 WNC Institutional Tax Credit Fund 38, L.P. 1,000 444 — 54 45 9 Merritt Community Capital Corporation Fund XV, L.P. 2,500 1,160 315 112 110 2 California Affordable Housing Fund 2,454 219 — 12 20 (8 ) Total $ 7,954 $ 2,755 $ 343 $ 278 $ 265 $ 13 At December 31, 2018 For the Six Months Ended June 30, 2018 Original Current Unfunded Tax Credits Amortization Net (Amounts in thousands) Investment Recorded Liability and of Income Tax Qualified Affordable Housing Partnerships Value Investment Obligation Benefits Investments Benefit (Expense) Raymond James California Housing Opportunities Fund II $ 2,000 $ 1,022 $ 28 $ 100 $ 89 $ 11 WNC Institutional Tax Credit Fund 38, L.P. 1,000 489 — 63 53 10 Merritt Community Capital Corporation Fund XV, L.P. 2,500 1,270 315 113 111 2 California Affordable Housing Fund 2,454 239 — 15 24 (9 ) Total $ 7,954 $ 3,020 $ 343 $ 291 $ 277 $ 14 The following tables present our generated tax credits and tax benefits from investments in qualified affordable housing partnerships for the three six June 30, 2019 2018. For the Three Months Ended June 30, 2019 June 30, 2018 (Amounts in thousands) Generated Tax Benefits From Generated Tax Benefits from Qualified Affordable Housing Partnerships Tax Credits Taxable Losses Tax Credits Taxable Losses Raymond James California Housing Opportunities $ 43 $ 7 $ 43 $ 8 WNC Institutional Tax Credit Fund 38, L.P. 23 4 28 4 Merritt Community Capital Corporation Fund 48 8 48 8 California Affordable Housing Fund — 6 1 6 Total $ 114 $ 25 $ 120 $ 26 For the Six Months Ended June 30, 2019 June 30, 2018 (Amounts in thousands) Generated Tax Benefits From Generated Tax Benefits from Qualified Affordable Housing Partnerships Tax Credits Taxable Losses Tax Credits Taxable Losses Raymond James California Housing Opportunities $ 85 $ 15 $ 85 $ 15 WNC Institutional Tax Credit Fund 38, L.P. 46 8 56 7 Merritt Community Capital Corporation Fund 96 16 96 17 California Affordable Housing Fund — 12 2 13 Total $ 227 $ 51 $ 239 $ 52 The following table reflects the net income tax benefit and (expense) at June 30, 2019 December 22, 2017. (Amounts in thousands) Qualified Affordable Housing Partnerships: Raymond James WNC Institutional Merritt Community California Total Net Anticipated net income tax benefit (expense) California Housing Tax Credit Capital Corporation Affordable Income Tax less amortization of investments Opportunities Fund II Fund 38, L.P. Fund XV, L.P Housing Fund Benefit 2019 $ 14 $ 13 $ 3 $ (10 ) $ 20 2020 19 17 4 (14 ) 26 2021 19 16 4 (14 ) 25 2022 19 14 3 (13 ) 23 2023 and thereafter 32 27 6 (32 ) 33 Total $ 103 $ 87 $ 20 $ (83 ) $ 127 |
Note 6 - Term Debt
Note 6 - Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 6. Term debt at June 30, 2019 December 31, 2018 (Amounts in thousands) June 30, 2019 December 31, 2018 Senior debt $ — $ 3,496 Unamortized debt issuance costs — (2 ) Subordinated Debt 10,000 10,000 Unamortized debt issuance costs (67 ) (89 ) Net term debt $ 9,933 $ 13,405 Future contractual maturities of term debt at June 30, 2019 (Amounts in thousands) 2019 2020 2021 2022 2023 Thereafter Total Subordinated Debt $ — $ — $ — $ — $ — $ 10,000 10,000 Total future maturities $ — $ — $ — $ — $ — $ 10,000 $ 10,000 Federal Home Loan Bank of San Francisco Borrowings We have an available line of credit with the Federal Home Loan Bank of San Francisco of $426.3 The Bank had no June 30, 2019 December 31, 2018. six June 30, 2019 December 31, 2018 $19.4 $22.5 six June 30, 2019 December 31, 2018 $40.0 $70.0 June 30, 2019, $7.4 Other Assets Consolidated Balance Sheets 320 321. We have pledged $488.3 $30.0 June 30, 2019. Senior Debt In December 2015, $10.0 second 2019, $83 January 1, 2016, December 10, 2020 $5.0 December 10, 2020. three 400 December 2015, $15 Subordinated Debt In December 2015, $10.0 2025. 6.88% five three 526 December 2015, $210 five The Subordinated Debt is subordinate and junior in right of payment to the prior payment in full of all existing and future claims of creditors and depositors of the Holding Company and its subsidiaries, whether now outstanding or subsequently created. The Subordinated Debt ranks equally with all other unsecured subordinated debt, except any which by its terms is expressly stated to be subordinated to the Subordinated Debt. The Subordinated Debt ranks senior to all preferred stock and common stock of the Holding Company and all future junior subordinated debt obligations. The Subordinated Debt is recorded as term debt on the Holding Company’s balance sheet; however, for regulatory purposes, it is treated as Tier 2 The Subordinated Debt will mature on December 10, 2025 may five no Federal Funds We have entered into nonbinding unsecured federal funds line of credit agreements with three $35.0 June 30, 2019 2.64% 3.38%. may June 30, 2019 December 31, 2018, no Federal Reserve Bank We have an available line of credit with the Federal Reserve Bank totaling $20.4 June 30, 2019 December 31, 2018, no $29.3 June 30, 2019. |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 7. Financial Instruments with Off-Balance Sheet Risk Our consolidated financial statements do not Consolidated Balance Sheets The following table presents a summary of our commitments and contingent liabilities at June 30, 2019 December 31, 2018. (Amounts in thousands) June 30, 2019 December 31, 2018 Commitments to extend credit $ 255,673 $ 223,882 Standby letters of credit 4,241 8,548 Affordable housing grants 3,338 3,338 Total commitments and contingent liabilities $ 263,252 $ 235,768 We were not six June 30, 2019, December 31, 2018. June 30, 2019, $3.4 one $856 Affordable Housing Grants In fulfilling our CRA responsibilities, we are a sponsor for various nonprofit organizations that receive cash grants from the Federal Home Loan Bank of San Francisco. Those grants require the nonprofit organization to comply with stipulated conditions of the grant over specified periods of time which typically vary from 10 15 Reserve For Unfunded Commitments The reserve for unfunded commitments, which is included in Other Liabilities Consolidated Balance Sheets $595 $695 June 30, 2019 December 31, 2018, Other Expenses Consolidated Statements of Income. Death Benefit Agreement The Company has entered into agreements with certain employees to pay a cash benefit to designated beneficiaries following the death of the employee. The payment will be made only if, at the time of death, the deceased employee was employed by the Bank and the Bank owned a life insurance policy on the employee’s life. Depending on specific facts and circumstances, the payment amount can vary up to a maximum of $225 may Legal Proceedings We are involved in various pending and threatened legal actions arising in the ordinary course of business and if necessary, we maintain reserves for losses from legal actions, which are both probable and estimable. In our opinion, the disposition of claims currently pending will not Concentrations of Credit Risk We grant many loans collateralized by real estate. In our judgment, a concentration exists in real estate related loans, which represented approximately 81% June 30, 2019 December 31, 2018. Although we believe such concentrations have no We recognize the credit risks inherent in dealing with other depository institutions. Accordingly, to prevent excessive exposure to other depository institutions in aggregate or individually, we have established general standards for selecting correspondent banks as well as internal limits for allowable exposure to other depository institutions in aggregate or individually. In addition, we have an investment policy that sets forth limitations that apply to all investments with respect to credit rating and concentrations with an issuer. |
Note 8 - Leases
Note 8 - Leases | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE 8. We lease nine one no We have applied ASC Topic 842 January 1, 2019 not not January 1, 2019, $4.4 Other Liabilities Other Assets $458 January 1, 2019 June 30, 2019. (Amounts in thousands) June 30, 2019 Right-of-use lease asset $ 3,569 Lease liability $ 3,994 Weighted Average Remaining Lease Term 6.05 Weighted Average Discount Rate 3.00 % Lease expenses are recorded on a straight-line basis over the life of each lease. Lease expense and cash paid on leases are presented in the table below for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Operating lease expense $ 199 $ 189 $ 398 $ 379 Cash paid for operating leases $ 215 $ 213 $ 432 $ 419 The following table sets forth, as of June 30, 2019, (Amounts in thousands) Amounts due in: 2019 $ 434 2020 884 2021 899 2022 807 2023 335 Thereafter 1,032 Total undiscounted future minimum lease cash payments 4,391 Present value adjustment (397 ) Lease liability $ 3,994 Our election to utilize the practical expedients package did not 842 not 842 |
Note 9 - Fair Values
Note 9 - Fair Values | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 9. The following tables present estimated fair values of our financial instruments as of June 30, 2019 December 31, 2018, not Consolidated Balance Sheets 820, not 825, (Amounts in thousands) Carrying Fair Value Measurements Using June 30, 2019 Amounts Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 40,625 $ 40,625 $ — $ — Securities available-for-sale $ 285,819 $ — $ 285,819 $ — Net loans $ 1,026,284 $ — $ — $ 1,041,177 Federal Home Loan Bank of San Francisco stock $ 7,380 $ 7,380 $ — $ — Financial liabilities Deposits $ 1,235,518 $ — $ 1,234,981 $ — Term debt $ 9,933 $ — $ 9,975 $ — Junior subordinated debenture $ 10,310 $ — $ 13,887 $ — (Amounts in thousands) Carrying Fair Value Measurements Using December 31, 2018 Amounts Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 47,365 $ 47,365 $ — $ — Securities available-for-sale $ 256,928 $ — $ 256,928 $ — Net loans $ 935,886 $ — $ — $ 936,697 Federal Home Loan Bank of San Francisco stock $ 5,892 $ 5,892 $ — $ — Financial liabilities Deposits $ 1,131,716 $ — $ 1,129,795 $ — Term debt $ 13,405 $ — $ 13,323 $ — Junior subordinated debenture $ 10,310 $ — $ 14,183 $ — Fair Value Hierarchy Level 1 Level 2 1 2 Level 3 not In certain cases, the inputs used to measure fair value may We maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Recurring Items Debt Securities – may 2 The following tables present information about our assets and liabilities measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation techniques we utilized to determine such fair value, as of June 30, 2019 December 31, 2018. (Amounts in thousands) Fair Value at June 30, 2019 Recurring Basis Total Level 1 Level 2 Level 3 Available-for-sale securities U.S. government and agencies $ 44,837 $ — $ 44,837 $ — Obligations of states and political subdivisions 45,003 — 45,003 — Residential mortgage-backed securities and collateralized mortgage obligations 168,085 — 168,085 — Corporate securities 2,978 — 2,978 — Commercial mortgage-backed securities 24,868 — 24,868 — Other asset-backed securities 48 — 48 — Total assets measured at fair value $ 285,819 $ — $ 285,819 $ — (Amounts in thousands) Fair Value at December 31, 2018 Recurring Basis Total Level 1 Level 2 Level 3 Available-for-sale securities U.S. government and agencies $ 40,087 $ — $ 40,087 $ — Obligations of states and political subdivisions 50,530 — 50,530 — Residential mortgage-backed securities and collateralized mortgage obligations 138,503 — 138,503 — Corporate securities 2,922 — 2,922 — Commercial mortgage-backed securities 24,762 — 24,762 — Other investment securities 124 — 124 — Total assets measured at fair value $ 256,928 $ — $ 256,928 $ — Transfers Between Fair Value Hierarchy Levels Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstance that caused the transfer. There were no three six June 30, 2019 December 31, 2018. Nonrecurring Items We may Collateral Dependent Loans – no 3 OREO – 3 The following tables present information about our assets at June 30, 2019 December 31, 2018 not (Amounts in thousands) Fair Value at June 30, 2019 Nonrecurring basis Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 10,429 $ — $ — $ 10,429 Total assets measured at fair value $ 10,429 $ — $ — $ 10,429 (Amounts in thousands) Fair Value at December 31, 2018 Nonrecurring basis Total Level 1 Level 2 Level 3 Other real estate owned $ 31 $ — $ — $ 31 Total assets measured at fair value $ 31 $ — $ — $ 31 The following table presents the losses resulting from nonrecurring fair value adjustments for the three six June 30, 2019 2018 June 30, 2019 2018. (Amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, Fair value adjustments 2019 2018 2019 2018 Collateral dependent impaired loans $ 425 $ — $ 467 $ — Other real estate owned — 66 — 162 Total $ 425 $ 66 $ 467 $ 162 During the six June 30, 2019, $10.9 $10.4 $467 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and other information about the financial instrument. These estimates do not one no Fair value estimates are based only on current on and off-balance sheet financial instruments. Our fair value estimates do not not |
Note 10 - Acquisition
Note 10 - Acquisition | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | NOTE 10. On January 31, 2019, 97 $211.7 January 31, 2019. one one May 2019, We paid $15.3 1,834,142 10% January 31, 2019. $85.3 $190.2 $107.4 January 31, 2019. The acquisition of Merchants constituted a business combination and has been accounted for using the acquisition method of accounting. The assets acquired and liabilities assumed, both tangible and intangible, were recorded at their fair values as of the acquisition date in accordance with ASC 805, third 368 The preliminary calculation of goodwill recorded during the first 2019 As Recorded by Preliminary Fair Value Merchants And Other Acquisition As Recorded by (Amounts in thousands) Holding Company Related Adjustments the Company Consideration paid: Cash $ 15,300 Stock 1,834,142 shares at $10.69 per share 19,607 Total consideration $ 34,907 Assets acquired: Cash and fed funds sold $ 12,425 $ — $ 12,425 Investment securities 107,931 (551 ) 107,380 Loans, gross 87,570 (2,292 ) 85,278 Allowance for loan and lease losses (1,286 ) 1,286 — Interest receivable 688 — 688 Premises and equipment, net 378 1,856 2,234 Deferred tax assets, net 1,374 (1,352 ) 22 Federal Home Loan Bank of San Francisco stock 1,454 — 1,454 Life insurance 755 — 755 Other assets 371 58 429 Core deposit intangible — 4,353 4,353 Total assets acquired $ 211,660 $ 3,358 $ 215,018 Liabilities assumed: Demand, money market and savings $ 152,213 $ — $ 152,213 Certificates of deposit 38,003 — 38,003 Total deposits 190,216 — 190,216 Other liabilities 916 22 938 Total liabilities assumed $ 191,132 $ 22 $ 191,154 Net identifiable assets acquired over liabilities assumed $ 20,528 $ 3,336 $ 23,864 Goodwill $ 11,043 Goodwill As a result of the Merchants acquisition, we have recorded a provisional amount of goodwill totaling $11.0 may Other Assets Other Liabilities six June 30, 2019 $4 not Goodwill reflects the expected value of Merchants reputation in the community, stable customer base and expected synergies created through the combined operations with our Company. The following is a description of the methods used to determine the fair values of significant assets and liabilities whose fair values are different from their carrying amounts on Merchants' books at acquisition date presented above. Investment Securities Fair values for securities were obtained from an independent pricing service and are based on quoted market prices, where available. If quoted market prices were not not Loans We engaged a third no $2.3 $195 $243 three six June 30, 2019, Premises and Equipment We engaged an independent licensed appraiser to determine the fair value of the acquired real estate located in Sacramento. The fair value of tangible personal property was not Deferred Tax Assets The deferred income tax assets are recorded to reflect the differences in the carrying values of the acquired assets and liabilities for financial reporting purposes and the basis for federal income tax purposes at the Company’s statutory federal and state income tax rate. The amounts recognized for deferred tax assets have been determined only provisionally, and will not 2018 2019 third 2019. Core Deposit Intangible We recorded a core deposit intangible asset of $4.4 first 2019. eight No 2019. $136 $227 three six June 30, 2019, June 30, 2019 (Amounts in thousands) 2019 2020 2021 2022 2023 Thereafter Total Core deposit intangible amortization $ 272 $ 544 $ 544 $ 544 $ 544 $ 1,678 $ 4,126 Pro Forma Results of Operations The following table presents pro forma information of the combined entity as if the acquisition occurred on January 1, 2018. not not For the Three Months Ended For the Six Months Ended Pro forma revenue and earnings June 30, June 30, (Amounts in thousands) 2019 2018 2019 2018 Net interest income $ 13,495 $ 12,929 $ 26,694 $ 25,603 Net income (1) $ 3,644 $ 4,011 $ 5,913 $ 7,603 ( 1 $376 $2.3 three six June 30, 2019, From the January 31, 2019 June 30, 2019 $1.2 $2.2 three five June 30, 2019, Consolidated Statement of Income Consolidated Statem ent of I n come |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Bank of Commerce Holdings (“Company,” “Holding Company,” “we,” or “us”), is a corporation organized under the laws of California and a bank holding company (“BHC”) registered under the Bank Holding Company Act of 1956, three May 20, 2019. Consolidated Balance Sheets June 30, 2019 December 31, 2018 not The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with prevailing practices within the banking and securities industries. In preparing such consolidated financial statements, management is required to make certain estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the Balance Sheets and the reported amounts of revenues and expenses for the reporting periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the valuation and impairment of investment securities, the determination of the allowance for loan and lease losses (“ALLL”), income taxes, the valuation of goodwill and Other Real Estate Owned (“OREO”), and fair value measurements. Certain amounts for prior periods have been reclassified to conform to the current financial statement presentation. The results of reclassifications are not no 2018 10 2019 not |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of the Holding Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As of June 30, 2019 December 31, 2018, one 2005 not Consolidation 810” not Consolidated Balance Sheets . |
Lessee, Leases [Policy Text Block] | Leases We determine if an arrangement is a lease at inception. Operating leases are included in Other Assets Other Liabilities Consolidated Balance Sheets not may |
New Accounting Pronouncements, Policy [Policy Text Block] | Application of new accounting guidance ASU No. 2016 02 Description - In February 2016, No. 2016 02, Leases (Topic 8 4 2 ) 842 No. 6, not Methods and timing of adoption – For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2018, July 2018, No. 2018 11, Leases (Topic 8 4 2 No. 2016 02 Financial statement impact – We implemented the new leasing standard on January 1, 2019 $4.4 $458 |
Note 2 - Common Stock Outstan_2
Note 2 - Common Stock Outstanding and Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended For the Six Months Ended (Amounts in thousands, except per share information) June 30, June 30, Earnings Per Share 2019 2018 2019 2018 Numerators: Net income $ 3,644 $ 3,618 $ 5,950 $ 6,859 Denominators: Weighted average number of common shares outstanding - basic (1) 18,134 16,245 17,816 16,237 Effect of potentially dilutive common shares (2) 60 80 62 82 Weighted average number of common shares outstanding - diluted 18,194 16,325 17,878 16,319 Earnings per common share: Basic $ 0.20 $ 0.22 $ 0.33 $ 0.42 Diluted $ 0.20 $ 0.22 $ 0.33 $ 0.42 Anti-dilutive options not included in diluted earnings per share calculation — — — — Anti-dilutive restricted shares not included in diluted earnings per share calculation — — — — |
Note 3 - Securities (Tables)
Note 3 - Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | As of June 30, 2019 Gross Gross Amortized Unrealized Unrealized Estimated (Amounts in thousands) Cost Gain Loss Fair Value Available-for-sale securities: U.S. government & agencies $ 44,334 $ 531 $ (28 ) $ 44,837 Obligations of state and political subdivisions 43,585 1,434 (16 ) 45,003 Residential mortgage-backed securities and collateralized mortgage obligations 166,683 2,068 (666 ) 168,085 Corporate securities 3,014 — (36 ) 2,978 Commercial mortgage-backed securities 24,744 260 (136 ) 24,868 Other asset-backed securities 48 — — 48 Total $ 282,408 $ 4,293 $ (882 ) $ 285,819 As of December 31, 2018 Gross Gross Amortized Unrealized Unrealized Estimated (Amounts in thousands) Cost Gain Loss Fair Value Available-for-sale securities: U.S. government & agencies $ 40,215 $ 202 $ (330 ) $ 40,087 Obligations of state and political subdivisions 50,037 1,082 (589 ) 50,530 Residential mortgage-backed securities and collateralized mortgage obligations 142,355 129 (3,981 ) 138,503 Corporate securities 3,022 — (100 ) 2,922 Commercial mortgage-backed securities 25,446 17 (701 ) 24,762 Other asset-backed securities 123 1 — 124 Total $ 261,198 $ 1,431 $ (5,701 ) $ 256,928 |
Amortized Cost and Estimated Fair Value Available for Sale Securities [Table Text Block] | Available-For-Sale (Amounts in thousands) Amortized Cost Fair Value Amounts maturing in: One year or less $ 3,894 $ 3,895 After one year through five years 125,541 127,308 After five years through ten years 84,830 85,406 After ten years 68,143 69,210 Total $ 282,408 $ 285,819 |
Schedule of Realized Gain (Loss) [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Proceeds from sales of investment securities $ 18,338 $ 1,107 $ 85,740 $ 20,505 Gross realized gains on sales of investment securities: U.S. government & agencies $ 6 $ — $ 39 $ — Obligations of state and political subdivisions 115 4 294 156 Residential mortgage-backed securities and collateralized mortgage obligations 16 — 64 — Commercial mortgage-backed securities 2 — 2 — Total gross realized gains on sales of investment securities 139 4 399 156 Gross realized losses on sales of investment securities: U.S. government & agencies — — (4 ) — Obligations of state and political subdivisions (12 ) — (90 ) (71 ) Residential mortgage-backed securities and collateralized mortgage obligations (64 ) — (149 ) — Commercial mortgage-backed securities (30 ) — (31 ) — Other asset-backed securities — — — (45 ) Total gross realized losses on sales of investment securities (106 ) — (274 ) (116 ) Gain on sales of investment securities, net $ 33 $ 4 $ 125 $ 40 |
Schedule of Unrealized Loss on Investments [Table Text Block] | As of June 30, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Amounts in thousands) Value Losses Value Losses Value Losses Available-for-sale securities: U.S. government & agencies $ 3,462 $ (22 ) $ 1,958 $ (6 ) $ 5,420 $ (28 ) Obligations of states and political subdivisions 409 (1 ) 2,070 (15 ) 2,479 (16 ) Residential mortgage-backed securities and collateralized mortgage obligations 4,811 (11 ) 56,087 (655 ) 60,898 (666 ) Corporate securities — — 2,978 (36 ) 2,978 (36 ) Commercial mortgage-backed securities — — 8,812 (136 ) 8,812 (136 ) Total temporarily impaired securities $ 8,682 $ (34 ) $ 71,905 $ (848 ) $ 80,587 $ (882 ) As of December 31, 2018 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Amounts in thousands) Value Loss Value Loss Value Loss Available-for-sale securities: U.S. government & agencies $ 7,223 $ (39 ) $ 12,274 $ (291 ) $ 19,497 $ (330 ) Obligations of states and political subdivisions 5,545 (40 ) 16,320 (549 ) 21,865 (589 ) Residential mortgage-backed securities and collateralized mortgage obligations 21,791 (183 ) 93,038 (3,798 ) 114,829 (3,981 ) Corporate securities — — 2,922 (100 ) 2,922 (100 ) Commercial mortgage-backed securities 1,548 (7 ) 20,176 (694 ) 21,724 (701 ) Total temporarily impaired securities $ 36,107 $ (269 ) $ 144,730 $ (5,432 ) $ 180,837 $ (5,701 ) |
Note 4 - Loans (Tables)
Note 4 - Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Outstanding Loan Balances [Table Text Block] | (Amounts in thousands) June 30, December 31, Loan Portfolio 2019 2018 Commercial $ 152,303 $ 135,543 Commercial real estate: Real estate - construction and land development 37,685 22,563 Real estate - commercial non-owner occupied 468,706 433,708 Real estate - commercial owner occupied 210,711 204,622 Residential real estate: Real estate - residential - Individual Tax Identification Number (“ITIN”) 35,162 37,446 Real estate - residential - 1-4 family mortgage 67,092 34,366 Real estate - residential - equity lines 23,656 26,958 Consumer and other 41,409 51,045 Gross loans 1,036,724 946,251 Deferred fees and costs 2,005 1,927 Loans, net of deferred fees and costs 1,038,729 948,178 Allowance for loan and lease losses (12,445 ) (12,292 ) Net loans $ 1,026,284 $ 935,886 |
Financing Receivable, Past Due [Table Text Block] | Recorded (Amounts in thousands) 30-59 60-89 90 or Greater Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and June 30, 2019 Due Due Due Due Current Total Accruing Commercial $ 31 $ 56 $ — $ 87 $ 152,216 $ 152,303 $ — Commercial real estate: Real estate - construction and land development — — — — 37,685 37,685 — Real estate - commercial non-owner occupied 10,315 374 — 10,689 458,017 468,706 — Real estate - commercial owner occupied — — — — 210,711 210,711 — Residential real estate: Real estate - residential - ITIN 200 181 213 594 34,568 35,162 — Real estate - residential - 1-4 family mortgage — — — — 67,092 67,092 — Real estate - residential - equity lines 165 — — 165 23,491 23,656 — Consumer and other 164 41 — 205 41,204 41,409 — Total $ 10,875 $ 652 $ 213 $ 11,740 $ 1,024,984 $ 1,036,724 $ — Recorded (Amounts in thousands) 30-59 60-89 90 or Greater Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and December 31, 2018 Due Due Due Due Current Total Accruing Commercial $ — $ — $ — $ — $ 135,543 $ 135,543 $ — Commercial real estate: Real estate - construction and land development — — — — 22,563 22,563 — Real estate - commercial non-owner occupied 10,878 — 548 11,426 422,282 433,708 — Real estate - commercial owner occupied 688 — — 688 203,934 204,622 — Residential real estate: Real estate - residential - ITIN 184 279 259 722 36,724 37,446 — Real estate - residential - 1-4 family mortgage — — 185 185 34,181 34,366 — Real estate - residential - equity lines 90 — — 90 26,868 26,958 — Consumer and other 534 263 — 797 50,248 51,045 — Total $ 12,374 $ 542 $ 992 $ 13,908 $ 932,343 $ 946,251 $ — |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent 1 [Table Text Block] | (Amounts in thousands) June 30, December 31, Nonaccrual Loans 2019 2018 Commercial $ 194 $ 959 Commercial real estate: Real estate - commercial non-owner occupied 10,690 548 Residential real estate: Real estate - residential - ITIN 2,389 2,388 Real estate - residential - 1-4 family mortgage 217 185 Real estate - residential - equity lines — 43 Consumer and other 22 23 Total $ 13,512 $ 4,146 |
Impaired Financing Receivables [Table Text Block] | As of June 30, 2019 Unpaid (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 227 $ 522 $ — Commercial real estate: Real estate - commercial non-owner occupied 10,690 11,136 — Residential real estate: Real estate - residential - ITIN 6,227 7,917 — Real estate - residential - 1-4 family mortgage 217 324 — Total with no related allowance recorded $ 17,361 $ 19,899 $ — With an allowance recorded: Commercial $ 1,059 $ 1,060 $ 385 Commercial real estate: Real estate - commercial non-owner occupied 791 791 169 Residential real estate: Real estate - residential - ITIN 462 462 45 Real estate - residential - equity lines 242 242 121 Consumer and other 22 22 7 Total with an allowance recorded $ 2,576 $ 2,577 $ 727 By loan portfolio: Commercial $ 1,286 $ 1,582 $ 385 Commercial real estate 11,481 11,927 169 Residential real estate 7,148 8,945 166 Consumer and other 22 22 7 Total impaired loans $ 19,937 $ 22,476 $ 727 As of December 31, 2018 (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 51 $ 69 $ — Commercial real estate: Real estate - commercial non-owner occupied 548 548 — Residential real estate: Real estate - residential - ITIN 6,138 7,676 — Real estate - residential - 1-4 family mortgage 185 223 — Real estate - residential - equity lines 43 48 — Total with no related allowance recorded $ 6,965 $ 8,564 $ — With an allowance recorded: Commercial $ 2,132 $ 2,256 $ 748 Commercial real estate: Real estate - commercial non-owner occupied 795 795 209 Residential real estate: Real estate - residential - ITIN 734 772 91 Real estate - residential - equity lines 363 363 182 Consumer and other 23 23 7 Total with an allowance recorded $ 4,047 $ 4,209 $ 1,237 By loan portfolio: Commercial $ 2,183 $ 2,325 $ 748 Commercial real estate 1,343 1,343 209 Residential real estate 7,463 9,082 273 Consumer and other 23 23 7 Total impaired loans $ 11,012 $ 12,773 $ 1,237 |
Average Recorded Investment and Interest Income Recognized on Impaired Loans by Loan Class [Table Text Block] | Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Average Interest Average Interest (Amounts in thousands) Recorded Income Recorded Income Average Recorded Investment and Interest Income Investment Recognized Investment Recognized Commercial $ 1,304 $ 16 $ 2,681 $ 20 Commercial real estate: Real estate - commercial non-owner occupied 11,622 11 799 12 Residential real estate: Real estate - residential - ITIN 6,719 41 7,237 42 Real estate - residential - 1-4 family mortgage 192 — 185 — Real estate - residential - equity lines 277 5 418 5 Consumer and other 22 — 34 — Total $ 20,136 $ 73 $ 11,354 $ 79 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Average Interest Average Interest (Amounts in thousands) Recorded Income Recorded Income Average Recorded Investment and Interest Income Investment Recognized Investment Recognized Commercial $ 1,662 $ 32 $ 2,635 $ 41 Commercial real estate: Real estate - commercial non-owner occupied 10,017 23 801 23 Residential real estate: Real estate - residential - ITIN 6,797 83 7,331 83 Real estate - residential - 1-4 family mortgage 188 — 255 — Real estate - residential - equity lines 340 10 420 10 Consumer and other 22 — 34 — Total $ 19,026 $ 148 $ 11,476 $ 157 |
Newly Restructured Loans [Table Text Block] | For the Three Months Ended For the Six Months Ended (Amounts in thousands) Troubled Debt Restructuring Maturity Payment Deferral Total Maturity Payment Deferral Total Commercial $ 86 $ — $ 86 $ 86 $ — $ 86 Residential real estate: Real estate - residential - equity lines — 39 39 — 39 39 Total $ 86 $ 39 $ 125 $ 86 $ 39 $ 125 |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Amounts in thousands) Number of Recorded Recorded Number of Recorded Recorded Troubled Debt Restructurings Contracts Investment Investment Contracts Investment Investment Commercial 1 $ 99 $ 99 1 $ 99 $ 99 Residential real estate: Real estate - residential - equity lines 1 39 39 1 39 39 Total 2 $ 138 $ 138 2 $ 138 $ 138 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (Amounts in thousands) June 30, 2019 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 152,109 $ 194 $ 152,303 Commercial real estate: Real estate - construction and land development 37,685 — 37,685 Real estate - commercial non-owner occupied 458,016 10,690 468,706 Real estate - commercial owner occupied 210,711 — 210,711 Residential real estate: Real estate - residential - ITIN 32,773 2,389 35,162 Real estate - residential - 1-4 family mortgage 66,875 217 67,092 Real estate - residential - equity lines 23,656 — 23,656 Consumer and other 41,387 22 41,409 Total $ 1,023,212 $ 13,512 $ 1,036,724 (Amounts in thousands) December 31, 2018 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 134,584 $ 959 $ 135,543 Commercial real estate: Real estate - construction and land development 22,563 — 22,563 Real estate - commercial non-owner occupied 433,160 548 433,708 Real estate - commercial owner occupied 204,622 — 204,622 Residential real estate: Real estate - residential - ITIN 35,058 2,388 37,446 Real estate - residential - 1-4 family mortgage 34,181 185 34,366 Real estate - residential - equity lines 26,915 43 26,958 Consumer and other 51,022 23 51,045 Total $ 942,105 $ 4,146 $ 946,251 |
Financing Receivable Credit Quality Indicator [Table Text Block] | As of June 30, 2019 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 142,317 $ 7,889 $ 502 $ 1,595 $ — $ 152,303 Commercial real estate: Real estate - construction and land development 37,663 22 — — — 37,685 Real estate - commercial non-owner occupied 434,340 9,354 12,416 12,596 — 468,706 Real estate - commercial owner occupied 194,406 5,217 — 11,088 — 210,711 Residential real estate: Real estate - residential - ITIN 29,721 — — 5,441 — 35,162 Real estate - residential - 1-4 family mortgage 65,352 1,050 473 217 — 67,092 Real estate - residential - equity lines 23,568 — — 88 — 23,656 Consumer and other 41,383 — — 26 — 41,409 Total $ 968,750 $ 23,532 $ 13,391 $ 31,051 $ — $ 1,036,724 As of December 31, 2018 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 118,643 $ 15,247 $ — $ 1,653 $ — $ 135,543 Commercial real estate: Real estate - construction and land development 22,539 24 — — — 22,563 Real estate - commercial non-owner occupied 409,157 21,698 — 2,853 — 433,708 Real estate - commercial owner occupied 179,154 14,075 — 11,393 — 204,622 Residential real estate: Real estate - residential - ITIN 31,805 — — 5,641 — 37,446 Real estate - residential - 1-4 family mortgage 33,388 793 — 185 — 34,366 Real estate - residential - equity lines 25,336 1,313 — 309 — 26,958 Consumer and other 51,016 — — 29 — 51,045 Total $ 871,038 $ 53,150 $ — $ 22,063 $ — $ 946,251 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | For the Three Months Ended June 30, 2019 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,479 $ 6,956 $ 1,211 $ 1,056 $ 540 $ 12,242 Charge-offs (145 ) (233 ) (71 ) (210 ) — (659 ) Recoveries 757 — 18 87 — 862 Provision (987 ) 875 (88 ) 137 63 — Ending balance $ 2,104 $ 7,598 $ 1,070 $ 1,070 $ 603 $ 12,445 For the Three Months Ended June 30, 2018 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,298 $ 6,898 $ 1,149 $ 1,473 $ 477 $ 12,295 Charge-offs (133 ) — (49 ) (200 ) — (382 ) Recoveries 350 — 47 78 — 475 Provision (73 ) 193 (36 ) (34 ) (50 ) — Ending balance $ 2,442 $ 7,091 $ 1,111 $ 1,317 $ 427 $ 12,388 For the Six Months Ended June 30, 2019 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,205 $ 7,116 $ 1,173 $ 1,356 $ 442 $ 12,292 Charge-offs (145 ) (233 ) (139 ) (490 ) — (1,007 ) Recoveries 911 — 100 149 — 1,160 Provision (867 ) 715 (64 ) 55 161 — Ending balance $ 2,104 $ 7,598 $ 1,070 $ 1,070 $ 603 $ 12,445 For the Six Months Ended June 30, 2018 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,397 $ 6,514 $ 1,169 $ 1,435 $ 410 $ 11,925 Charge-offs (133 ) — (163 ) (475 ) — (771 ) Recoveries 803 — 293 138 — 1,234 Provision (625 ) 577 (188 ) 219 17 — Ending balance $ 2,442 $ 7,091 $ 1,111 $ 1,317 $ 427 $ 12,388 As of June 30, 2019 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 385 $ 169 $ 166 $ 7 $ — $ 727 Collectively evaluated for impairment 1,719 7,429 904 1,063 603 11,718 Total $ 2,104 $ 7,598 $ 1,070 $ 1,070 $ 603 $ 12,445 Gross loans: Individually evaluated for impairment $ 1,286 $ 11,481 $ 7,148 $ 22 $ — $ 19,937 Collectively evaluated for impairment 151,017 705,621 118,762 41,387 — 1,016,787 Total gross loans $ 152,303 $ 717,102 $ 125,910 $ 41,409 $ — $ 1,036,724 As of December 31, 2018 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 748 $ 209 $ 273 $ 7 $ — $ 1,237 Collectively evaluated for impairment 1,457 6,907 900 1,349 442 11,055 Total $ 2,205 $ 7,116 $ 1,173 $ 1,356 $ 442 $ 12,292 Gross loans: Individually evaluated for impairment $ 2,183 $ 1,343 $ 7,463 $ 23 $ — $ 11,012 Collectively evaluated for impairment 133,360 659,550 91,307 51,022 — 935,239 Total gross loans $ 135,543 $ 660,893 $ 98,770 $ 51,045 $ — $ 946,251 |
Note 5 - Qualified Affordable_2
Note 5 - Qualified Affordable Housing Partnership Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Proportional Amortization Method Investment Qualified Affordable Housing Project [Table Text Block] | At June 30, 2019 For the Six Months Ended June 30, 2019 Original Current Unfunded Tax Credits Amortization Net (Amounts in thousands) Investment Recorded Liability and of Income Tax Qualified Affordable Housing Partnerships Value Investment Obligation Benefits Investments Benefit (Expense) Raymond James California Housing Opportunities Fund II $ 2,000 $ 932 $ 28 $ 100 $ 90 $ 10 WNC Institutional Tax Credit Fund 38, L.P. 1,000 444 — 54 45 9 Merritt Community Capital Corporation Fund XV, L.P. 2,500 1,160 315 112 110 2 California Affordable Housing Fund 2,454 219 — 12 20 (8 ) Total $ 7,954 $ 2,755 $ 343 $ 278 $ 265 $ 13 At December 31, 2018 For the Six Months Ended June 30, 2018 Original Current Unfunded Tax Credits Amortization Net (Amounts in thousands) Investment Recorded Liability and of Income Tax Qualified Affordable Housing Partnerships Value Investment Obligation Benefits Investments Benefit (Expense) Raymond James California Housing Opportunities Fund II $ 2,000 $ 1,022 $ 28 $ 100 $ 89 $ 11 WNC Institutional Tax Credit Fund 38, L.P. 1,000 489 — 63 53 10 Merritt Community Capital Corporation Fund XV, L.P. 2,500 1,270 315 113 111 2 California Affordable Housing Fund 2,454 239 — 15 24 (9 ) Total $ 7,954 $ 3,020 $ 343 $ 291 $ 277 $ 14 |
Qualified Affordable Housing Project Investments Tax Credits and Benefits [Table Text Block] | For the Three Months Ended June 30, 2019 June 30, 2018 (Amounts in thousands) Generated Tax Benefits From Generated Tax Benefits from Qualified Affordable Housing Partnerships Tax Credits Taxable Losses Tax Credits Taxable Losses Raymond James California Housing Opportunities $ 43 $ 7 $ 43 $ 8 WNC Institutional Tax Credit Fund 38, L.P. 23 4 28 4 Merritt Community Capital Corporation Fund 48 8 48 8 California Affordable Housing Fund — 6 1 6 Total $ 114 $ 25 $ 120 $ 26 For the Six Months Ended June 30, 2019 June 30, 2018 (Amounts in thousands) Generated Tax Benefits From Generated Tax Benefits from Qualified Affordable Housing Partnerships Tax Credits Taxable Losses Tax Credits Taxable Losses Raymond James California Housing Opportunities $ 85 $ 15 $ 85 $ 15 WNC Institutional Tax Credit Fund 38, L.P. 46 8 56 7 Merritt Community Capital Corporation Fund 96 16 96 17 California Affordable Housing Fund — 12 2 13 Total $ 227 $ 51 $ 239 $ 52 |
Qualified Affordable Housing Projects Future Income Tax Benefit [Table Text Block] | (Amounts in thousands) Qualified Affordable Housing Partnerships: Raymond James WNC Institutional Merritt Community California Total Net Anticipated net income tax benefit (expense) California Housing Tax Credit Capital Corporation Affordable Income Tax less amortization of investments Opportunities Fund II Fund 38, L.P. Fund XV, L.P Housing Fund Benefit 2019 $ 14 $ 13 $ 3 $ (10 ) $ 20 2020 19 17 4 (14 ) 26 2021 19 16 4 (14 ) 25 2022 19 14 3 (13 ) 23 2023 and thereafter 32 27 6 (32 ) 33 Total $ 103 $ 87 $ 20 $ (83 ) $ 127 |
Note 6 - Term Debt (Tables)
Note 6 - Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | (Amounts in thousands) June 30, 2019 December 31, 2018 Senior debt $ — $ 3,496 Unamortized debt issuance costs — (2 ) Subordinated Debt 10,000 10,000 Unamortized debt issuance costs (67 ) (89 ) Net term debt $ 9,933 $ 13,405 |
Schedule of Maturities of Long-term Debt [Table Text Block] | (Amounts in thousands) 2019 2020 2021 2022 2023 Thereafter Total Subordinated Debt $ — $ — $ — $ — $ — $ 10,000 10,000 Total future maturities $ — $ — $ — $ — $ — $ 10,000 $ 10,000 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Commitments and Contingent Liabilities [Table Text Block] | (Amounts in thousands) June 30, 2019 December 31, 2018 Commitments to extend credit $ 255,673 $ 223,882 Standby letters of credit 4,241 8,548 Affordable housing grants 3,338 3,338 Total commitments and contingent liabilities $ 263,252 $ 235,768 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | (Amounts in thousands) June 30, 2019 Right-of-use lease asset $ 3,569 Lease liability $ 3,994 Weighted Average Remaining Lease Term 6.05 Weighted Average Discount Rate 3.00 % Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Operating lease expense $ 199 $ 189 $ 398 $ 379 Cash paid for operating leases $ 215 $ 213 $ 432 $ 419 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (Amounts in thousands) Amounts due in: 2019 $ 434 2020 884 2021 899 2022 807 2023 335 Thereafter 1,032 Total undiscounted future minimum lease cash payments 4,391 Present value adjustment (397 ) Lease liability $ 3,994 |
Note 9 - Fair Values (Tables)
Note 9 - Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | (Amounts in thousands) Carrying Fair Value Measurements Using June 30, 2019 Amounts Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 40,625 $ 40,625 $ — $ — Securities available-for-sale $ 285,819 $ — $ 285,819 $ — Net loans $ 1,026,284 $ — $ — $ 1,041,177 Federal Home Loan Bank of San Francisco stock $ 7,380 $ 7,380 $ — $ — Financial liabilities Deposits $ 1,235,518 $ — $ 1,234,981 $ — Term debt $ 9,933 $ — $ 9,975 $ — Junior subordinated debenture $ 10,310 $ — $ 13,887 $ — (Amounts in thousands) Carrying Fair Value Measurements Using December 31, 2018 Amounts Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 47,365 $ 47,365 $ — $ — Securities available-for-sale $ 256,928 $ — $ 256,928 $ — Net loans $ 935,886 $ — $ — $ 936,697 Federal Home Loan Bank of San Francisco stock $ 5,892 $ 5,892 $ — $ — Financial liabilities Deposits $ 1,131,716 $ — $ 1,129,795 $ — Term debt $ 13,405 $ — $ 13,323 $ — Junior subordinated debenture $ 10,310 $ — $ 14,183 $ — |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | (Amounts in thousands) Fair Value at June 30, 2019 Recurring Basis Total Level 1 Level 2 Level 3 Available-for-sale securities U.S. government and agencies $ 44,837 $ — $ 44,837 $ — Obligations of states and political subdivisions 45,003 — 45,003 — Residential mortgage-backed securities and collateralized mortgage obligations 168,085 — 168,085 — Corporate securities 2,978 — 2,978 — Commercial mortgage-backed securities 24,868 — 24,868 — Other asset-backed securities 48 — 48 — Total assets measured at fair value $ 285,819 $ — $ 285,819 $ — (Amounts in thousands) Fair Value at December 31, 2018 Recurring Basis Total Level 1 Level 2 Level 3 Available-for-sale securities U.S. government and agencies $ 40,087 $ — $ 40,087 $ — Obligations of states and political subdivisions 50,530 — 50,530 — Residential mortgage-backed securities and collateralized mortgage obligations 138,503 — 138,503 — Corporate securities 2,922 — 2,922 — Commercial mortgage-backed securities 24,762 — 24,762 — Other investment securities 124 — 124 — Total assets measured at fair value $ 256,928 $ — $ 256,928 $ — |
Fair Value Measurements, Nonrecurring [Table Text Block] | (Amounts in thousands) Fair Value at June 30, 2019 Nonrecurring basis Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 10,429 $ — $ — $ 10,429 Total assets measured at fair value $ 10,429 $ — $ — $ 10,429 (Amounts in thousands) Fair Value at December 31, 2018 Nonrecurring basis Total Level 1 Level 2 Level 3 Other real estate owned $ 31 $ — $ — $ 31 Total assets measured at fair value $ 31 $ — $ — $ 31 |
Loss from Nonrecurring Fair Value [Table Text Block] | (Amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, Fair value adjustments 2019 2018 2019 2018 Collateral dependent impaired loans $ 425 $ — $ 467 $ — Other real estate owned — 66 — 162 Total $ 425 $ 66 $ 467 $ 162 |
Note 10 - Acquisition (Tables)
Note 10 - Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | As Recorded by Preliminary Fair Value Merchants And Other Acquisition As Recorded by (Amounts in thousands) Holding Company Related Adjustments the Company Consideration paid: Cash $ 15,300 Stock 1,834,142 shares at $10.69 per share 19,607 Total consideration $ 34,907 Assets acquired: Cash and fed funds sold $ 12,425 $ — $ 12,425 Investment securities 107,931 (551 ) 107,380 Loans, gross 87,570 (2,292 ) 85,278 Allowance for loan and lease losses (1,286 ) 1,286 — Interest receivable 688 — 688 Premises and equipment, net 378 1,856 2,234 Deferred tax assets, net 1,374 (1,352 ) 22 Federal Home Loan Bank of San Francisco stock 1,454 — 1,454 Life insurance 755 — 755 Other assets 371 58 429 Core deposit intangible — 4,353 4,353 Total assets acquired $ 211,660 $ 3,358 $ 215,018 Liabilities assumed: Demand, money market and savings $ 152,213 $ — $ 152,213 Certificates of deposit 38,003 — 38,003 Total deposits 190,216 — 190,216 Other liabilities 916 22 938 Total liabilities assumed $ 191,132 $ 22 $ 191,154 Net identifiable assets acquired over liabilities assumed $ 20,528 $ 3,336 $ 23,864 Goodwill $ 11,043 |
Business Acquisition, Pro Forma Information [Table Text Block] | For the Three Months Ended For the Six Months Ended Pro forma revenue and earnings June 30, June 30, (Amounts in thousands) 2019 2018 2019 2018 Net interest income $ 13,495 $ 12,929 $ 26,694 $ 25,603 Net income (1) $ 3,644 $ 4,011 $ 5,913 $ 7,603 |
Merchants Holding Company [Member] | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (Amounts in thousands) 2019 2020 2021 2022 2023 Thereafter Total Core deposit intangible amortization $ 272 $ 544 $ 544 $ 544 $ 544 $ 1,678 $ 4,126 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands | Jan. 01, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018 |
Number Of Wholly Owned Trusts | 1 | 1 | |
Operating Lease, Right-of-Use Asset | $ 3,569 | ||
Operating Lease, Right-of-use Assets, Reduction for Amounts Recognized Previously | $ 458 | ||
Operating Lease, Liability, Total | $ 3,994 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Right-of-Use Asset | 4,400 | ||
Operating Lease, Liability, Total | $ 4,400 |
Note 2 - Common Stock Outstan_3
Note 2 - Common Stock Outstanding and Earnings Per Share (Details Textual) - USD ($) $ in Millions | Jan. 31, 2019 | Jun. 30, 2019 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,834,142 | 1,834,142 |
Payments to Acquire Businesses, Gross | $ 15.3 | |
Merchants Holding Company [Member] | Bank of Commerce [Member] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% |
Note 2 - Common Stock Outstan_4
Note 2 - Common Stock Outstanding and Earnings Per Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net income | $ 3,644 | $ 2,306 | $ 4,839 | $ 4,032 | $ 3,618 | $ 3,241 | $ 5,950 | $ 6,859 | |
Weighted average shares - basic (in shares) | [1] | 18,134 | 16,245 | 17,816 | 16,237 | ||||
Effect of potentially dilutive common shares (in shares) | [2] | 60 | 80 | 62 | 82 | ||||
Weighted average number of common shares outstanding - diluted (in shares) | 18,194 | 16,325 | 17,878 | 16,319 | |||||
Earnings per share - basic (in dollars per share) | $ 0.20 | $ 0.22 | $ 0.33 | $ 0.42 | |||||
Earnings per share - diluted (in dollars per share) | $ 0.20 | $ 0.22 | $ 0.33 | $ 0.42 | |||||
Share-based Payment Arrangement, Option [Member] | |||||||||
Anti-dilutive options not included in diluted earnings per share calculation (in shares) | |||||||||
Restricted Stock [Member] | |||||||||
Anti-dilutive options not included in diluted earnings per share calculation (in shares) | |||||||||
[1] | Excludes unvested restricted shares because they do not have dividend or voting rights | ||||||||
[2] | Represents the effects of the assumed exercise of stock options and vesting of non-participating restricted shares. |
Note 3 - Securities (Details Te
Note 3 - Securities (Details Textual) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Held as Collateral, at Fair Value | $ 74.3 | $ 68.8 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 69 | 163 |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Available for Sale Securities, Percent of Portfolio Guaranteed | 82.00% | 66.00% |
Commercial Mortgage Backed Securities [Member] | ||
Available for Sale Securities, Percent of Portfolio Guaranteed | 95.00% | 90.00% |
Note 3 - Securities - Securitie
Note 3 - Securities - Securities Reconciliation (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale securities: | ||
Available-for-sale securities, amortized costs | $ 282,408 | $ 261,198 |
Available-for-sale securities, gross unrealized gain | 4,293 | 1,431 |
Available-for-sale securities, gross unrealized loss | (882) | (5,701) |
Securities available-for-sale | 285,819 | 256,928 |
US Government Agencies Debt Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized costs | 44,334 | 40,215 |
Available-for-sale securities, gross unrealized gain | 531 | 202 |
Available-for-sale securities, gross unrealized loss | (28) | (330) |
Securities available-for-sale | 44,837 | 40,087 |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized costs | 43,585 | 50,037 |
Available-for-sale securities, gross unrealized gain | 1,434 | 1,082 |
Available-for-sale securities, gross unrealized loss | (16) | (589) |
Securities available-for-sale | 45,003 | 50,530 |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized costs | 166,683 | 142,355 |
Available-for-sale securities, gross unrealized gain | 2,068 | 129 |
Available-for-sale securities, gross unrealized loss | (666) | (3,981) |
Securities available-for-sale | 168,085 | 138,503 |
Corporate Debt Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized costs | 3,014 | 3,022 |
Available-for-sale securities, gross unrealized gain | ||
Available-for-sale securities, gross unrealized loss | (36) | (100) |
Securities available-for-sale | 2,978 | 2,922 |
Commercial Mortgage Backed Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized costs | 24,744 | 25,446 |
Available-for-sale securities, gross unrealized gain | 260 | 17 |
Available-for-sale securities, gross unrealized loss | (136) | (701) |
Securities available-for-sale | 24,868 | 24,762 |
Asset-backed Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized costs | 48 | 123 |
Available-for-sale securities, gross unrealized gain | 1 | |
Available-for-sale securities, gross unrealized loss | ||
Securities available-for-sale | $ 48 | $ 124 |
Note 3 - Securities - Expected
Note 3 - Securities - Expected Maturities of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amounts maturing in: | ||
Available-for-sale securities, amortized cost, one year or less | $ 3,894 | |
Available-for-sale securities, fair value, one year or less | 3,895 | |
Available-for-sale securities, amortized cost, after one year through five years | 125,541 | |
Available-for-sale securities, fair value, after one year through five years | 127,308 | |
Available-for-sale securities, amortized cost, after five years through ten years | 84,830 | |
Available-for-sale securities, fair value, after five years through ten years | 85,406 | |
Available-for-sale securities, amortized cost, after ten years | 68,143 | |
Available-for-sale securities, fair value, after ten years | 69,210 | |
Available-for-sale securities, amortized cost, total | 282,408 | $ 261,198 |
Available-for-sale securities, fair value, total | $ 285,819 |
Note 3 - Securities - Sales of
Note 3 - Securities - Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Proceeds from sales of investment securities | $ 18,338 | $ 1,107 | $ 85,740 | $ 20,505 |
Gross realized gains on sales of securities | 139 | 4 | 399 | 156 |
Gross realized losses on sales of securities | (106) | (274) | (116) | |
Gain on sales of investment securities, net | 33 | 4 | 125 | 40 |
US Government Agencies Debt Securities [Member] | ||||
Gross realized gains on sales of securities | 6 | 39 | ||
Gross realized losses on sales of securities | (4) | |||
US States and Political Subdivisions Debt Securities [Member] | ||||
Gross realized gains on sales of securities | 115 | 4 | 294 | 156 |
Gross realized losses on sales of securities | (12) | (90) | (71) | |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||||
Gross realized gains on sales of securities | 16 | 64 | ||
Gross realized losses on sales of securities | (64) | (149) | ||
Commercial Mortgage Backed Securities [Member] | ||||
Gross realized gains on sales of securities | 2 | 2 | ||
Gross realized losses on sales of securities | (30) | (31) | ||
Asset-backed Securities [Member] | ||||
Gross realized losses on sales of securities | $ (45) |
Note 3 - Securities - Securit_2
Note 3 - Securities - Securities in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale securities, less than 12 months, fair value | $ 8,682 | $ 36,107 |
Available-for-sale securities, less than 12 months, unrealized losses | (34) | (269) |
Available-for-sale securities, 12 months or more, fair value | 71,905 | 144,730 |
Available-for-sale securities, 12 months or more, unrealized losses | (848) | (5,432) |
Available-for-sale securities, fair value | 80,587 | 180,837 |
Available-for-sale securities, unrealized losses | (882) | (5,701) |
US Government Agencies Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 3,462 | 7,223 |
Available-for-sale securities, less than 12 months, unrealized losses | (22) | (39) |
Available-for-sale securities, 12 months or more, fair value | 1,958 | 12,274 |
Available-for-sale securities, 12 months or more, unrealized losses | (6) | (291) |
Available-for-sale securities, fair value | 5,420 | 19,497 |
Available-for-sale securities, unrealized losses | (28) | (330) |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 409 | 5,545 |
Available-for-sale securities, less than 12 months, unrealized losses | (1) | (40) |
Available-for-sale securities, 12 months or more, fair value | 2,070 | 16,320 |
Available-for-sale securities, 12 months or more, unrealized losses | (15) | (549) |
Available-for-sale securities, fair value | 2,479 | 21,865 |
Available-for-sale securities, unrealized losses | (16) | (589) |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 4,811 | 21,791 |
Available-for-sale securities, less than 12 months, unrealized losses | (11) | (183) |
Available-for-sale securities, 12 months or more, fair value | 56,087 | 93,038 |
Available-for-sale securities, 12 months or more, unrealized losses | (655) | (3,798) |
Available-for-sale securities, fair value | 60,898 | 114,829 |
Available-for-sale securities, unrealized losses | (666) | (3,981) |
Corporate Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | ||
Available-for-sale securities, less than 12 months, unrealized losses | ||
Available-for-sale securities, 12 months or more, fair value | 2,978 | 2,922 |
Available-for-sale securities, 12 months or more, unrealized losses | (36) | (100) |
Available-for-sale securities, fair value | 2,978 | 2,922 |
Available-for-sale securities, unrealized losses | (36) | (100) |
Commercial Mortgage Backed Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 1,548 | |
Available-for-sale securities, less than 12 months, unrealized losses | (7) | |
Available-for-sale securities, 12 months or more, fair value | 8,812 | 20,176 |
Available-for-sale securities, 12 months or more, unrealized losses | (136) | (694) |
Available-for-sale securities, fair value | 8,812 | 21,724 |
Available-for-sale securities, unrealized losses | $ (136) | $ (701) |
Note 4 - Loans (Details Textual
Note 4 - Loans (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 1,900 | $ 1,900 | $ 2,500 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 229 | $ 43 | 376 | $ 84 | |
Impaired Financing Receivable, Recorded Investment, Total | $ 19,937 | $ 19,937 | 11,012 | ||
Percentage of Collateral Coverage to Loan Balance to Consider Restructured Loan to Performing and Accrual Status | 100.00% | ||||
Financing Receivable, Modifications, Number of Contracts | 2 | 0 | 2 | 0 | |
Financing Receivable, Nonaccrual | $ 13,512 | $ 13,512 | 4,146 | ||
Financing Receivable, Troubled Debt Restructuring | $ 8,200 | $ 8,200 | $ 9,600 | ||
Financing Receivable, Number of Contracts Qualified as Troubled Debt Restructuring | 103 | 103 | |||
Troubled Debt Restructurings Percentage of Gross Portfolio Loans | 0.80% | 0.80% | 1.01% | ||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | 0 | 0 | |||
Doubtful Grade Remaining Outstanding Period, Minimum | 180 days | ||||
Mortgage Loans in Process of Foreclosure, Amount | $ 229 | $ 229 | |||
Loans and Leases Receivable, Allowance, Ending Balance | $ 12,445 | $ 12,445 | $ 12,292 | ||
Percentage of Allowance for Loan and Lease Losses out of Net Loans | 1.20% | 1.20% | 1.30% | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 263,300 | $ 263,300 | $ 235,800 | ||
Reserve for Unfunded Commitments Included in Other Liabilities | $ 595 | $ 595 | $ 695 | ||
Percentage of Loan Portfolio Secured by Real Estate | 81.00% | 81.00% | |||
Percentage of Unallocated Allowance Amount out of Allowance for Loan and Lease Losses | 5.00% | 4.00% | |||
Maximum Loan to Value, Percentage | 80.00% | ||||
Commercial Portfolio Segment [Member] | |||||
Impaired Financing Receivable, Recorded Investment, Total | $ 1,286 | $ 1,286 | $ 2,183 | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 1 | |||
Financing Receivable, Nonaccrual | $ 194 | $ 194 | $ 959 | ||
Commercial Portfolio Segment [Member] | Line of Credit [Member] | |||||
Financing Receivable, Modifications, Number of Contracts | 1 | ||||
Financing Receivable, Nonaccrual | $ 313 | ||||
Performing Financial Instruments [Member] | |||||
Impaired Financing Receivable, Recorded Investment, Total | $ 6,400 | $ 6,400 | 6,900 | ||
Financing Receivable, Number of Contracts Qualified as Troubled Debt Restructuring | 101 | 101 | |||
Merchants Holding Company [Member] | |||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 2,000 | $ 2,000 | |||
Accretion (Amortization) of Discounts and Premiums, Acquired Loans | 195 | 243 | |||
Federal Home Loan Bank of San Francisco [Member] | |||||
Loans Pledged as Collateral | $ 517,600 | $ 517,600 | $ 490,200 |
Note 4 - Loans - Outstanding Lo
Note 4 - Loans - Outstanding Loan Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Gross loans | $ 1,036,724 | $ 946,251 |
Deferred fees and costs | 2,005 | 1,927 |
Loans, net of deferred fees and costs | 1,038,729 | 948,178 |
Allowance for loan and lease losses | (12,445) | (12,292) |
Net loans | 1,026,284 | 935,886 |
Commercial Portfolio Segment [Member] | ||
Gross loans | 152,303 | 135,543 |
Commercial Real Estate Portfolio Segment [Member] | ||
Gross loans | 717,102 | 660,893 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | 37,685 | 22,563 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 468,706 | 433,708 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | 210,711 | 204,622 |
Residential Portfolio Segment [Member] | ||
Gross loans | 125,910 | 98,770 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | 35,162 | 37,446 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 67,092 | 34,366 |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | 23,656 | 26,958 |
Consumer Portfolio Segment [Member] | ||
Gross loans | $ 41,409 | $ 51,045 |
Note 4 - Loans - Age Analysis o
Note 4 - Loans - Age Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans, past due | $ 11,740 | $ 13,908 |
Loans, current | 1,024,984 | 932,343 |
Gross loans | 1,036,724 | 946,251 |
Recorded investment greater than 90 days and accruing | ||
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 10,875 | 12,374 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 652 | 542 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due | 213 | 992 |
Commercial Portfolio Segment [Member] | ||
Loans, past due | 87 | |
Loans, current | 152,216 | 135,543 |
Gross loans | 152,303 | 135,543 |
Recorded investment greater than 90 days and accruing | ||
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 31 | |
Commercial Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 56 | |
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due | ||
Commercial Real Estate Portfolio Segment [Member] | ||
Gross loans | 717,102 | 660,893 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans, past due | ||
Loans, current | 37,685 | 22,563 |
Gross loans | 37,685 | 22,563 |
Recorded investment greater than 90 days and accruing | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Loans, past due | 10,689 | 11,426 |
Loans, current | 458,017 | 422,282 |
Gross loans | 468,706 | 433,708 |
Recorded investment greater than 90 days and accruing | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Loans, past due | 688 | |
Loans, current | 210,711 | 203,934 |
Gross loans | 210,711 | 204,622 |
Recorded investment greater than 90 days and accruing | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Construction Loans [Member] | ||
Loans, past due | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Non-owner Occupied [Member] | ||
Loans, past due | 10,315 | 10,878 |
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Owner Occupied Loan [Member] | ||
Loans, past due | 688 | |
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Construction Loans [Member] | ||
Loans, past due | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Non-owner Occupied [Member] | ||
Loans, past due | 374 | |
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Owner Occupied Loan [Member] | ||
Loans, past due | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction Loans [Member] | ||
Loans, past due | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Non-owner Occupied [Member] | ||
Loans, past due | 548 | |
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Owner Occupied Loan [Member] | ||
Loans, past due | ||
Residential Portfolio Segment [Member] | ||
Gross loans | 125,910 | 98,770 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Loans, past due | 594 | 722 |
Loans, current | 34,568 | 36,724 |
Gross loans | 35,162 | 37,446 |
Recorded investment greater than 90 days and accruing | ||
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Loans, past due | 185 | |
Loans, current | 67,092 | 34,181 |
Gross loans | 67,092 | 34,366 |
Recorded investment greater than 90 days and accruing | ||
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Loans, past due | 165 | 90 |
Loans, current | 23,491 | 26,868 |
Gross loans | 23,656 | 26,958 |
Recorded investment greater than 90 days and accruing | ||
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Loans, past due | 200 | 184 |
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Loans, past due | ||
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Home Equity Loan [Member] | ||
Loans, past due | 165 | 90 |
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Loans, past due | 181 | 279 |
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Loans, past due | ||
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Home Equity Loan [Member] | ||
Loans, past due | ||
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Loans, past due | 213 | 259 |
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Loans, past due | 185 | |
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Home Equity Loan [Member] | ||
Loans, past due | ||
Consumer Portfolio Segment [Member] | ||
Loans, past due | 205 | 797 |
Loans, current | 41,204 | 50,248 |
Gross loans | 41,409 | 51,045 |
Recorded investment greater than 90 days and accruing | ||
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 164 | 534 |
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 41 | 263 |
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due |
Note 4 - Loans - Nonaccrual Loa
Note 4 - Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Nonaccrual loans | $ 13,512 | $ 4,146 |
Commercial Portfolio Segment [Member] | ||
Nonaccrual loans | 194 | 959 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Nonaccrual loans | 10,690 | 548 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Nonaccrual loans | 2,389 | 2,388 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Nonaccrual loans | 217 | 185 |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Nonaccrual loans | 43 | |
Consumer Portfolio Segment [Member] | ||
Nonaccrual loans | $ 22 | $ 23 |
Note 4 - Loans - Impaired Loans
Note 4 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Recorded investment with no related allowance recorded | $ 17,361 | $ 6,965 |
Unpaid principal balance with no related allowance recorded | 19,899 | 8,564 |
Recorded investment with related allowance recorded | 2,576 | 4,047 |
Unpaid principal balance with related allowance recorded | 2,577 | 4,209 |
Related allowance | 727 | 1,237 |
Recorded investment | 19,937 | 11,012 |
Unpaid principle balance | 22,476 | 12,773 |
Commercial Portfolio Segment [Member] | ||
Recorded investment with no related allowance recorded | 227 | 51 |
Unpaid principal balance with no related allowance recorded | 522 | 69 |
Recorded investment with related allowance recorded | 1,059 | 2,132 |
Unpaid principal balance with related allowance recorded | 1,060 | 2,256 |
Related allowance | 385 | 748 |
Recorded investment | 1,286 | 2,183 |
Unpaid principle balance | 1,582 | 2,325 |
Commercial Real Estate Portfolio Segment [Member] | ||
Related allowance | 169 | 209 |
Recorded investment | 11,481 | 1,343 |
Unpaid principle balance | 11,927 | 1,343 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Recorded investment with no related allowance recorded | 10,690 | 548 |
Unpaid principal balance with no related allowance recorded | 11,136 | 548 |
Recorded investment with related allowance recorded | 791 | 795 |
Unpaid principal balance with related allowance recorded | 791 | 795 |
Related allowance | 169 | 209 |
Residential Portfolio Segment [Member] | ||
Related allowance | 166 | 273 |
Recorded investment | 7,148 | 7,463 |
Unpaid principle balance | 8,945 | 9,082 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Recorded investment with no related allowance recorded | 6,227 | 6,138 |
Unpaid principal balance with no related allowance recorded | 7,917 | 7,676 |
Recorded investment with related allowance recorded | 462 | 734 |
Unpaid principal balance with related allowance recorded | 462 | 772 |
Related allowance | 45 | 91 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Recorded investment with no related allowance recorded | 217 | 185 |
Unpaid principal balance with no related allowance recorded | 324 | 223 |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Recorded investment with no related allowance recorded | 43 | |
Unpaid principal balance with no related allowance recorded | 48 | |
Recorded investment with related allowance recorded | 242 | 363 |
Unpaid principal balance with related allowance recorded | 242 | 363 |
Related allowance | 121 | 182 |
Consumer Portfolio Segment [Member] | ||
Recorded investment with related allowance recorded | 22 | 23 |
Unpaid principal balance with related allowance recorded | 22 | 23 |
Related allowance | 7 | 7 |
Recorded investment | 22 | 23 |
Unpaid principle balance | $ 22 | $ 23 |
Note 4 - Loans - Average Record
Note 4 - Loans - Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Average recorded investment | $ 20,136 | $ 11,354 | $ 19,026 | $ 11,476 |
Interest income recognized | 73 | 79 | 148 | 157 |
Commercial Portfolio Segment [Member] | ||||
Average recorded investment | 1,304 | 2,681 | 1,662 | 2,635 |
Interest income recognized | 16 | 20 | 32 | 41 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||||
Average recorded investment | 11,622 | 799 | 10,017 | 801 |
Interest income recognized | 11 | 12 | 23 | 23 |
Residential Portfolio Segment [Member] | Individual Tax Identification Number Loan [Member] | ||||
Average recorded investment | 6,719 | 7,237 | 6,797 | 7,331 |
Interest income recognized | 41 | 42 | 83 | 83 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||||
Average recorded investment | 192 | 185 | 188 | 255 |
Interest income recognized | ||||
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||||
Average recorded investment | 277 | 418 | 340 | 420 |
Interest income recognized | 5 | 5 | 10 | 10 |
Consumer Portfolio Segment [Member] | ||||
Average recorded investment | 22 | 34 | 22 | 34 |
Interest income recognized |
Note 4 - Loans - Newly Restruct
Note 4 - Loans - Newly Restructured Loans and Types of Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Financing receivable modifications | $ 125 | $ 125 |
Commercial Portfolio Segment [Member] | ||
Financing receivable modifications | 86 | 86 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Equity Lines [Member] | ||
Financing receivable modifications | 39 | 39 |
Extended Maturity [Member] | ||
Financing receivable modifications | 86 | 86 |
Extended Maturity [Member] | Commercial Portfolio Segment [Member] | ||
Financing receivable modifications | 86 | 86 |
Extended Maturity [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Equity Lines [Member] | ||
Financing receivable modifications | ||
Payment Deferral [Member] | ||
Financing receivable modifications | 39 | 39 |
Payment Deferral [Member] | Commercial Portfolio Segment [Member] | ||
Financing receivable modifications | ||
Payment Deferral [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Equity Lines [Member] | ||
Financing receivable modifications | $ 39 | $ 39 |
Note 4 - Loans - Troubled Debt
Note 4 - Loans - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018 | Jun. 30, 2019USD ($) | Jun. 30, 2018 | |
Number of contracts | 2 | 0 | 2 | 0 |
Pre-modification outstanding recorded investment | $ 138 | $ 138 | ||
Post-modification outstanding recorded investment | $ 138 | $ 138 | ||
Commercial Portfolio Segment [Member] | ||||
Number of contracts | 1 | 1 | ||
Pre-modification outstanding recorded investment | $ 99 | $ 99 | ||
Post-modification outstanding recorded investment | $ 99 | $ 99 | ||
Residential Portfolio Segment [Member] | Equity Lines [Member] | Real Estate Loan [Member] | ||||
Number of contracts | 1 | 1 | ||
Pre-modification outstanding recorded investment | $ 39 | $ 39 | ||
Post-modification outstanding recorded investment | $ 39 | $ 39 |
Note 4 - Loans - Performing and
Note 4 - Loans - Performing and Nonperforming Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Gross loans | $ 1,036,724 | $ 946,251 |
Commercial Portfolio Segment [Member] | ||
Gross loans | 152,303 | 135,543 |
Commercial Real Estate Portfolio Segment [Member] | ||
Gross loans | 717,102 | 660,893 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | 37,685 | 22,563 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 468,706 | 433,708 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | 210,711 | 204,622 |
Residential Portfolio Segment [Member] | ||
Gross loans | 125,910 | 98,770 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | 35,162 | 37,446 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 67,092 | 34,366 |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | 23,656 | 26,958 |
Consumer Portfolio Segment [Member] | ||
Gross loans | 41,409 | 51,045 |
Performing Financial Instruments [Member] | ||
Gross loans | 1,023,212 | 942,105 |
Performing Financial Instruments [Member] | Commercial Portfolio Segment [Member] | ||
Gross loans | 152,109 | 134,584 |
Performing Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | 37,685 | 22,563 |
Performing Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 458,016 | 433,160 |
Performing Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | 210,711 | 204,622 |
Performing Financial Instruments [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | 32,773 | 35,058 |
Performing Financial Instruments [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 66,875 | 34,181 |
Performing Financial Instruments [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | 23,656 | 26,915 |
Performing Financial Instruments [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans | 41,387 | 51,022 |
Nonperforming Financial Instruments [Member] | ||
Gross loans | 13,512 | 4,146 |
Nonperforming Financial Instruments [Member] | Commercial Portfolio Segment [Member] | ||
Gross loans | 194 | 959 |
Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | ||
Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 10,690 | 548 |
Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | ||
Nonperforming Financial Instruments [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | 2,389 | 2,388 |
Nonperforming Financial Instruments [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 217 | 185 |
Nonperforming Financial Instruments [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | 43 | |
Nonperforming Financial Instruments [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans | $ 22 | $ 23 |
Note 4 - Loans - Internal Risk
Note 4 - Loans - Internal Risk Rating by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Gross loans | $ 1,036,724 | $ 946,251 |
Commercial Portfolio Segment [Member] | ||
Gross loans | 152,303 | 135,543 |
Commercial Real Estate Portfolio Segment [Member] | ||
Gross loans | 717,102 | 660,893 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | 37,685 | 22,563 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 468,706 | 433,708 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | 210,711 | 204,622 |
Residential Portfolio Segment [Member] | ||
Gross loans | 125,910 | 98,770 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | 35,162 | 37,446 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 67,092 | 34,366 |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | 23,656 | 26,958 |
Consumer Portfolio Segment [Member] | ||
Gross loans | 41,409 | 51,045 |
Pass [Member] | ||
Gross loans | 968,750 | 871,038 |
Pass [Member] | Commercial Portfolio Segment [Member] | ||
Gross loans | 142,317 | 118,643 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | 37,663 | 22,539 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 434,340 | 409,157 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | 194,406 | 179,154 |
Pass [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | 29,721 | 31,805 |
Pass [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 65,352 | 33,388 |
Pass [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | 23,568 | 25,336 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans | 41,383 | 51,016 |
Watch [Member] | ||
Gross loans | 23,532 | 53,150 |
Watch [Member] | Commercial Portfolio Segment [Member] | ||
Gross loans | 7,889 | 15,247 |
Watch [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | 22 | 24 |
Watch [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 9,354 | 21,698 |
Watch [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | 5,217 | 14,075 |
Watch [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | ||
Watch [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 1,050 | 793 |
Watch [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | 1,313 | |
Watch [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans | ||
Special Mention [Member] | ||
Gross loans | 13,391 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | ||
Gross loans | 502 | |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | ||
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 12,416 | |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | ||
Special Mention [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | ||
Special Mention [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 473 | |
Special Mention [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | ||
Special Mention [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans | ||
Substandard [Member] | ||
Gross loans | 31,051 | 22,063 |
Substandard [Member] | Commercial Portfolio Segment [Member] | ||
Gross loans | 1,595 | 1,653 |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | ||
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | 12,596 | 2,853 |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | 11,088 | 11,393 |
Substandard [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | 5,441 | 5,641 |
Substandard [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | 217 | 185 |
Substandard [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | 88 | 309 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans | 26 | 29 |
Doubtful [Member] | ||
Gross loans | ||
Doubtful [Member] | Commercial Portfolio Segment [Member] | ||
Gross loans | ||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Gross loans | ||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Gross loans | ||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Gross loans | ||
Doubtful [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Gross loans | ||
Doubtful [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Gross loans | ||
Doubtful [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Gross loans | ||
Doubtful [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans |
Note 4 - Loans - Allowance for
Note 4 - Loans - Allowance for Credit Losses and Recorded Investment in Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Balance | $ 12,242 | $ 12,295 | $ 12,292 | $ 11,925 | ||
Charge-offs | (659) | (382) | (1,007) | (771) | ||
Recoveries | 862 | 475 | 1,160 | 1,234 | ||
Provision for loan and lease losses | ||||||
Balance | 12,445 | 12,388 | 12,445 | 12,388 | ||
Individually evaluated for impairment | $ 727 | $ 1,237 | ||||
Collectively evaluated for impairment | 11,718 | 11,055 | ||||
Total | 12,242 | 12,295 | 12,445 | 12,388 | 12,445 | 12,292 |
Individually evaluated for impairment | 19,937 | 11,012 | ||||
Collectively evaluated for impairment | 1,016,787 | 935,239 | ||||
Total gross loans | 1,036,724 | 946,251 | ||||
Commercial Portfolio Segment [Member] | ||||||
Balance | 2,479 | 2,298 | 2,205 | 2,397 | ||
Charge-offs | (145) | (133) | (145) | (133) | ||
Recoveries | 757 | 350 | 911 | 803 | ||
Provision for loan and lease losses | (987) | (73) | (867) | (625) | ||
Balance | 2,104 | 2,442 | 2,104 | 2,442 | ||
Individually evaluated for impairment | 385 | 748 | ||||
Collectively evaluated for impairment | 1,719 | 1,457 | ||||
Total | 2,479 | 2,298 | 2,104 | 2,442 | 2,104 | 2,205 |
Individually evaluated for impairment | 1,286 | 2,183 | ||||
Collectively evaluated for impairment | 151,017 | 133,360 | ||||
Total gross loans | 152,303 | 135,543 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Balance | 6,956 | 6,898 | 7,116 | 6,514 | ||
Charge-offs | (233) | (233) | ||||
Recoveries | ||||||
Provision for loan and lease losses | 875 | 193 | 715 | 577 | ||
Balance | 7,598 | 7,091 | 7,598 | 7,091 | ||
Individually evaluated for impairment | 169 | 209 | ||||
Collectively evaluated for impairment | 7,429 | 6,907 | ||||
Total | 6,956 | 6,898 | 7,598 | 7,091 | 7,598 | 7,116 |
Individually evaluated for impairment | 11,481 | 1,343 | ||||
Collectively evaluated for impairment | 705,621 | 659,550 | ||||
Total gross loans | 717,102 | 660,893 | ||||
Residential Portfolio Segment [Member] | ||||||
Balance | 1,211 | 1,149 | 1,173 | 1,169 | ||
Charge-offs | (71) | (49) | (139) | (163) | ||
Recoveries | 18 | 47 | 100 | 293 | ||
Provision for loan and lease losses | (88) | (36) | (64) | (188) | ||
Balance | 1,070 | 1,111 | 1,070 | 1,111 | ||
Individually evaluated for impairment | 166 | 273 | ||||
Collectively evaluated for impairment | 904 | 900 | ||||
Total | 1,211 | 1,149 | 1,070 | 1,111 | 1,070 | 1,173 |
Individually evaluated for impairment | 7,148 | 7,463 | ||||
Collectively evaluated for impairment | 118,762 | 91,307 | ||||
Total gross loans | 125,910 | 98,770 | ||||
Consumer Portfolio Segment [Member] | ||||||
Balance | 1,056 | 1,473 | 1,356 | 1,435 | ||
Charge-offs | (210) | (200) | (490) | (475) | ||
Recoveries | 87 | 78 | 149 | 138 | ||
Provision for loan and lease losses | 137 | (34) | 55 | 219 | ||
Balance | 1,070 | 1,317 | 1,070 | 1,317 | ||
Individually evaluated for impairment | 7 | 7 | ||||
Collectively evaluated for impairment | 1,063 | 1,349 | ||||
Total | 1,056 | 1,473 | 1,070 | 1,317 | 1,070 | 1,356 |
Individually evaluated for impairment | 22 | 23 | ||||
Collectively evaluated for impairment | 41,387 | 51,022 | ||||
Total gross loans | 41,409 | 51,045 | ||||
Unallocated Financing Receivables [Member] | ||||||
Balance | 540 | 477 | 442 | 410 | ||
Charge-offs | ||||||
Recoveries | ||||||
Provision for loan and lease losses | 63 | (50) | 161 | 17 | ||
Balance | 603 | 427 | 603 | 427 | ||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 603 | 442 | ||||
Total | $ 540 | $ 477 | $ 603 | $ 427 | 603 | 442 |
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | ||||||
Total gross loans |
Note 5 - Qualified Affordable_3
Note 5 - Qualified Affordable Housing Partnership Investments (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Qualified Affordable Housing Project Investments Term | 18 years | |
Proportional Amortization Method Qualified Affordable Housing Project Investments | $ 2,755 | $ 3,020 |
Proportional Amortization Method Qualified Affordable Housing Project Investments Unfunded Liability Obligation | $ 343 | $ 343 |
Minimum [Member] | ||
Qualified Affordable Housing Project Investments Return Rate | 3.00% | |
Maximum [Member] | ||
Qualified Affordable Housing Project Investments Return Rate | 5.00% |
Note 5 - Qualified Affordable_4
Note 5 - Qualified Affordable Housing Partnership Investments - Original Investment in LIHTC Projects (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Original Investment | $ 7,954 | $ 7,954 |
Current Recorded Investment | 2,755 | 3,020 |
Unfunded Liability Obligation | 343 | 343 |
Tax Credits and Benefits | 278 | 291 |
Amortization of Investments | 265 | 277 |
Net Income Tax Benefit | 13 | 14 |
Raymond James California Housing Opportunities Fund II [Member] | ||
Original Investment | 2,000 | 2,000 |
Current Recorded Investment | 932 | 1,022 |
Unfunded Liability Obligation | 28 | 28 |
Tax Credits and Benefits | 100 | 100 |
Amortization of Investments | 90 | 89 |
Net Income Tax Benefit | 10 | 11 |
WNC Institutional Tax Credit Fun 38 L.P. [Member] | ||
Original Investment | 1,000 | 1,000 |
Current Recorded Investment | 444 | 489 |
Unfunded Liability Obligation | ||
Tax Credits and Benefits | 54 | 63 |
Amortization of Investments | 45 | 53 |
Net Income Tax Benefit | 9 | 10 |
Merritt Community Capital Corporation Fund XV, L.P. [Member] | ||
Original Investment | 2,500 | 2,500 |
Current Recorded Investment | 1,160 | 1,270 |
Unfunded Liability Obligation | 315 | 315 |
Tax Credits and Benefits | 112 | 113 |
Amortization of Investments | 110 | 111 |
Net Income Tax Benefit | 2 | 2 |
California Affordable Housing Fund [Member] | ||
Original Investment | 2,454 | 2,454 |
Current Recorded Investment | 219 | 239 |
Unfunded Liability Obligation | ||
Tax Credits and Benefits | 12 | 15 |
Amortization of Investments | 20 | 24 |
Net Income Tax Benefit | $ (8) | $ (9) |
Note 5 - Qualified Affordable_5
Note 5 - Qualified Affordable Housing Partnership Investments - Generated Tax Credits and Benefits From Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Generated tax credits | $ 114 | $ 120 | $ 227 | $ 239 |
Tax benefits from taxable losses | 25 | 26 | 51 | 52 |
Raymond James California Housing Opportunities Fund II [Member] | ||||
Generated tax credits | 43 | 43 | 85 | 85 |
Tax benefits from taxable losses | 7 | 8 | 15 | 15 |
WNC Institutional Tax Credit Fun 38 L.P. [Member] | ||||
Generated tax credits | 23 | 28 | 46 | 56 |
Tax benefits from taxable losses | 4 | 4 | 8 | 7 |
Merritt Community Capital Corporation Fund XV, L.P. [Member] | ||||
Generated tax credits | 48 | 48 | 96 | 96 |
Tax benefits from taxable losses | 8 | 8 | 16 | 17 |
California Affordable Housing Fund [Member] | ||||
Generated tax credits | 1 | 2 | ||
Tax benefits from taxable losses | $ 6 | $ 6 | $ 12 | $ 13 |
Note 5 - Qualified Affordable_6
Note 5 - Qualified Affordable Housing Partnership Investments - Anticipated Net Income Tax Benefit (Details) $ in Thousands | Jun. 30, 2019USD ($) |
2019 | $ 20 |
2020 | 26 |
2021 | 25 |
2022 | 23 |
2023 and thereafter | 33 |
Total | 127 |
Raymond James California Housing Opportunities Fund II [Member] | |
2019 | 14 |
2020 | 19 |
2021 | 19 |
2022 | 19 |
2023 and thereafter | 32 |
Total | 103 |
WNC Institutional Tax Credit Fun 38 L.P. [Member] | |
2019 | 13 |
2020 | 17 |
2021 | 16 |
2022 | 14 |
2023 and thereafter | 27 |
Total | 87 |
Merritt Community Capital Corporation Fund XV, L.P. [Member] | |
2019 | 3 |
2020 | 4 |
2021 | 4 |
2022 | 3 |
2023 and thereafter | 6 |
Total | 20 |
California Affordable Housing Fund [Member] | |
2019 | (10) |
2020 | (14) |
2021 | (14) |
2022 | (13) |
2023 and thereafter | (32) |
Total | $ (83) |
Note 6 - Term Debt (Details Tex
Note 6 - Term Debt (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2019 | Dec. 31, 2018 | |
Proceeds from Issuance of Senior Long-term Debt | $ 10,000 | ||
Proceeds from Issuance of Subordinated Long-term Debt | 10,000 | ||
Federal Funds Purchased | $ 0 | $ 0 | |
Federal Funds Purchased [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000 | ||
Federal Funds Purchased [Member] | Minimum [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.64% | ||
Federal Funds Purchased [Member] | Maximum [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.38% | ||
Federal Reserve Bank Advances [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,400 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 0 | 0 | |
Senior Notes [Member] | |||
Debt Instrument, Periodic Payment, Total | 83 | ||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 5,000 | ||
Debt Issuance Costs, Gross | $ 15 | ||
Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||
Subordinated Debt [Member] | Fixed to Floating Interest Rate [Member] | |||
Debt Issuance Costs, Gross | $ 210 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | ||
Debt Fixed Interest Term | 5 years | ||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Fixed to Floating Interest Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 5.26% | ||
Commercial Loans [Member] | Federal Reserve Bank Advances [Member] | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 29,300 | ||
Federal Home Loan Bank of San Francisco [Member] | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 426,300 | ||
Advances from Federal Home Loan Banks, Total | 0 | 0 | |
Federal Home Loan Bank, Advances, Activity for Year, Average Balance of Agreements Outstanding | 19,400 | 22,500 | |
Federal Home Loan Bank, Advances, Activity for Year, Maximum Outstanding at any Month End | 40,000 | $ 70,000 | |
Federal Home Loan Bank of San Francisco [Member] | Real Estate [Member] | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 488,300 | ||
Federal Home Loan Bank of San Francisco [Member] | Equity Securities [Member] | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 30,000 | ||
Federal Home Loan Bank of San Francisco [Member] | Other Assets [Member] | |||
Federal Home Loan Bank Stock | $ 7,400 |
Note 6 - Term Debt - Term Debt
Note 6 - Term Debt - Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Senior Notes [Member] | ||
Long-term debt, gross | $ 3,496 | |
Unamortized debt issuance costs | (2) | |
Subordinated Debt [Member] | ||
Long-term debt, gross | 10,000 | 10,000 |
Unamortized debt issuance costs | (67) | (89) |
Term Debt [Member] | ||
Long-term debt, gross | 10,000 | 13,496 |
Unamortized debt issuance costs | (67) | (91) |
Net term debt | $ 9,933 | $ 13,405 |
Note 6 - Term Debt - Future Con
Note 6 - Term Debt - Future Contractual Maturities of Term Debt (Details) $ in Millions | Jun. 30, 2019USD ($) |
2019 | |
2020 | |
2021 | |
2022 | |
2023 | |
Thereafter | 10 |
Total future maturities | 10 |
Subordinated Debt [Member] | |
2019 | |
2020 | |
2021 | |
2022 | |
2023 | |
Thereafter | 10 |
Total future maturities | $ 10 |
Note 7 - Commitments and Cont_3
Note 7 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Expiry of Standby Letters of Credit Within One Year | $ 3,400 | |
Expiry of Standby Letter of Credit Thereafter | 856 | |
Reserve for Unfunded Commitments Included in Other Liabilities | $ 595 | $ 695 |
Real Estate Related Loans Representing Lease Portfolio | 81.00% | 81.00% |
Insurance Claims [Member] | Maximum [Member] | ||
Loss Contingency, Estimate of Possible Loss | $ 225 | |
Other Liabilities [Member] | ||
Reserve for Unfunded Commitments Included in Other Liabilities | $ 595 | $ 695 |
Note 7 - Commitments and Cont_4
Note 7 - Commitments and Contingencies - Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments | $ 263,252 | $ 235,768 |
Standby Letters of Credit [Member] | ||
Commitments | 4,241 | 8,548 |
Federal Home Loan Bank of San Francisco Affordable Housing Grant Sponsorships [Member] | ||
Commitments | 3,338 | 3,338 |
Commitments to Extend Credit [Member] | ||
Commitments | $ 255,673 | $ 223,882 |
Note 8 - Leases (Details Textua
Note 8 - Leases (Details Textual) $ in Thousands | Jan. 01, 2019USD ($) | Jun. 30, 2019USD ($) |
Number of Operating Leases Sites | 9 | |
Operating Lease, Liability, Total | $ 3,994 | |
Operating Lease, Right-of-use Assets, Reduction for Amounts Recognized Previously | $ 458 | |
Operating Lease, Right-of-Use Asset | $ 3,569 | |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Liability, Total | 4,400 | |
Operating Lease, Right-of-Use Asset | 4,400 | |
Other Liabilities [Member] | Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Liability, Total | 4,400 | |
Other Assets [Member] | Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Right-of-Use Asset | $ 4,400 |
Note 8 - Leases - Lease Informa
Note 8 - Leases - Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Right-of-use lease asset | $ 3,569 | $ 3,569 | ||
Lease liability | $ 3,994 | $ 3,994 | ||
Weighted Average Remaining Lease Term (Year) | 6 years 18 days | 6 years 18 days | ||
Weighted Average Discount Rate | 3.00% | 3.00% | ||
Operating lease expense | $ 199 | $ 189 | $ 398 | $ 379 |
Cash paid for operating leases | $ 215 | $ 213 | $ 432 | $ 419 |
Note 8 - Leases - Future Minimu
Note 8 - Leases - Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
2019 | $ 434 |
2020 | 884 |
2021 | 899 |
2022 | 807 |
2023 | 335 |
Thereafter | 1,032 |
Total undiscounted future minimum lease cash payments | 4,391 |
Present value adjustment | (397) |
Lease liability | $ 3,994 |
Note 9 - Fair Values (Details T
Note 9 - Fair Values (Details Textual) - Other Real Estate Owned [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
OREO Carrying Amount | $ 10,400 | $ 10,900 |
Allowance for Loan and Lease Losses, Adjustments, Other | $ 467 |
Note 9 - Fair Values - Fair Val
Note 9 - Fair Values - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets | ||
Securities available-for-sale | $ 285,819 | $ 256,928 |
Reported Value Measurement [Member] | ||
Financial assets | ||
Cash and cash equivalents | 40,625 | 47,365 |
Securities available-for-sale | 285,819 | 256,928 |
Net loans | 1,026,284 | 935,886 |
Federal Home Loan Bank of San Francisco stock | 7,380 | 5,892 |
Financial liabilities | ||
Deposits | 1,235,518 | 1,131,716 |
Term debt | 9,933 | 13,405 |
Junior subordinated debenture | 10,310 | 10,310 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and cash equivalents | 40,625 | 47,365 |
Securities available-for-sale | ||
Net loans | ||
Federal Home Loan Bank of San Francisco stock | 7,380 | 5,892 |
Financial liabilities | ||
Deposits | ||
Term debt | ||
Junior subordinated debenture | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial assets | ||
Cash and cash equivalents | ||
Securities available-for-sale | 285,819 | 256,928 |
Net loans | ||
Federal Home Loan Bank of San Francisco stock | ||
Financial liabilities | ||
Deposits | 1,234,981 | 1,129,795 |
Term debt | 9,975 | 13,323 |
Junior subordinated debenture | 13,887 | 14,183 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial assets | ||
Cash and cash equivalents | ||
Securities available-for-sale | ||
Net loans | 1,041,177 | 936,697 |
Federal Home Loan Bank of San Francisco stock | ||
Financial liabilities | ||
Deposits | ||
Term debt | ||
Junior subordinated debenture |
Note 9 - Fair Values - Assets a
Note 9 - Fair Values - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale | $ 285,819 | $ 256,928 |
Fair Value, Recurring [Member] | ||
Total assets measured at fair value | 285,819 | 256,928 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Total assets measured at fair value | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Total assets measured at fair value | 285,819 | 256,928 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Total assets measured at fair value | ||
US Government Agencies Debt Securities [Member] | ||
Securities available-for-sale | 44,837 | 40,087 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Securities available-for-sale | 44,837 | 40,087 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | 44,837 | 40,087 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale | ||
US States and Political Subdivisions Debt Securities [Member] | ||
Securities available-for-sale | 45,003 | 50,530 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Securities available-for-sale | 45,003 | 50,530 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | 45,003 | 50,530 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale | ||
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Securities available-for-sale | 168,085 | 138,503 |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | Fair Value, Recurring [Member] | ||
Securities available-for-sale | 168,085 | 138,503 |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | 168,085 | 138,503 |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale | ||
Corporate Debt Securities [Member] | ||
Securities available-for-sale | 2,978 | 2,922 |
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Securities available-for-sale | 2,978 | 2,922 |
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | 2,978 | 2,922 |
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale | ||
Commercial Mortgage Backed Securities [Member] | ||
Securities available-for-sale | 24,868 | 24,762 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Securities available-for-sale | 24,868 | 24,762 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | 24,868 | 24,762 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale | ||
Asset-backed Securities [Member] | ||
Securities available-for-sale | 48 | 124 |
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | ||
Securities available-for-sale | 48 | |
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | 48 | |
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale | ||
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | ||
Securities available-for-sale | 124 | |
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | 124 | |
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale |
Note 9 - Fair Values - Fair V_2
Note 9 - Fair Values - Fair Value of Assets Measured on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other real estate owned | $ 31 | |
Fair Value, Nonrecurring [Member] | ||
Collateral dependent impaired loans | 10,429 | |
Total assets measured at fair value | 10,429 | 31 |
Other real estate owned | 31 | |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Collateral dependent impaired loans | ||
Total assets measured at fair value | ||
Other real estate owned | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Collateral dependent impaired loans | ||
Total assets measured at fair value | ||
Other real estate owned | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Collateral dependent impaired loans | 10,429 | |
Total assets measured at fair value | $ 10,429 | 31 |
Other real estate owned | $ 31 |
Note 9 - Fair Values - Losses R
Note 9 - Fair Values - Losses Resulting From Non-recurring Fair Value Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Losses resulting from nonrecurring fair value adjustments | $ 425 | $ 66 | $ 467 | $ 162 |
Collateral Dependent Impaired Loans [Member] | ||||
Losses resulting from nonrecurring fair value adjustments | 425 | 467 | ||
Other Real Estate Owned [Member] | ||||
Losses resulting from nonrecurring fair value adjustments | $ 66 | $ 162 |
Note 10 - Acquisition (Details
Note 10 - Acquisition (Details Textual) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Payments to Acquire Businesses, Gross | $ 15,300 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,834,142 | 1,834,142 | ||||
Amortization of Intangible Assets, Total | $ 337 | $ 110 | ||||
Merchants Holding Company [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 211,660 | $ 211,660 | 211,660 | |||
Bank of Commerce [Member] | Merchants Holding Company [Member] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | 10.00% | ||||
Merchants Holding Company [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 211,700 | $ 211,700 | 215,018 | 215,018 | 215,018 | |
Payments to Acquire Businesses, Gross | $ 15,300 | 15,300 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,834,142 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans | 85,300 | $ 85,300 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deposits | 190,200 | 190,200 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Investment Securities | 107,400 | 107,400 | ||||
Goodwill, Ending Balance | 11,000 | 11,000 | 11,043 | 11,043 | 11,043 | |
Goodwill, Purchase Accounting Adjustments | 4 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Discount of Loans | 2,300 | 2,300 | ||||
Amortization of Debt Discount (Premium) | 195 | 243 | ||||
Business Combination, Acquisition Related Costs | 376 | 2,300 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 1,200 | $ 2,200 | ||||
Merchants Holding Company [Member] | Core Deposits [Member] | ||||||
Finite-Lived Intangible Assets, Gross, Total | $ 4,400 | $ 4,400 | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||||
Impairment of Intangible Assets, Finite-lived | 0 | |||||
Amortization of Intangible Assets, Total | $ 136 | $ 227 |
Note 10 - Acquisition - Assets
Note 10 - Acquisition - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2019 | Jun. 30, 2019 |
Consideration paid: | |||
Cash | $ 15,300 | ||
Merchants Holding Company [Member] | |||
Consideration paid: | |||
Cash and fed funds sold | $ 12,425 | ||
Investment securities | 107,931 | ||
Loans, gross | 87,570 | ||
Allowance for loan and lease losses | (1,286) | ||
Interest receivable | 688 | ||
Premises and equipment, net | 378 | ||
Deferred tax assets, net | 1,374 | ||
Federal Home Loan Bank of San Francisco stock | 1,454 | ||
Life insurance | 755 | ||
Other assets | 371 | ||
Core deposit intangible | |||
Total assets acquired | 211,660 | ||
Liabilities assumed: | |||
Demand, money market and savings | 152,213 | ||
Certificates of deposit | 38,003 | ||
Total deposits | 190,216 | ||
Other liabilities | 916 | ||
Total liabilities assumed | 191,132 | ||
Net identifiable assets acquired over liabilities assumed | 20,528 | ||
Merchants Holding Company [Member] | |||
Consideration paid: | |||
Cash | $ 15,300 | 15,300 | |
Stock 1,834,142 shares at $10.69 per share | 19,607 | ||
Total consideration | 34,907 | ||
Cash and fed funds sold | 12,425 | ||
Investment securities | 107,380 | ||
Investment securities, adjustment | (551) | ||
Loans, gross | 85,278 | ||
Loans, gross, adjustment | (2,292) | ||
Allowance for loan and lease losses | |||
Allowance for loan and lease losses, adjustment | 1,286 | ||
Interest receivable | 688 | ||
Premises and equipment, net | 2,234 | ||
Premises and equipment, net, adjustment | 1,856 | ||
Deferred tax assets, net | 22 | ||
Deferred tax assets, net, adjustment | (1,352) | ||
Federal Home Loan Bank of San Francisco stock | 1,454 | ||
Life insurance | 755 | ||
Other assets | 429 | ||
Other assets, adjustment | 58 | ||
Core deposit intangible | 4,353 | ||
Core deposit intangible, adjustment | 4,353 | ||
Total assets acquired | 211,700 | 211,700 | 215,018 |
Total assets acquired, adjustment | 3,358 | ||
Liabilities assumed: | |||
Demand, money market and savings | 152,213 | ||
Certificates of deposit | 38,003 | ||
Total deposits | 190,216 | ||
Other liabilities | 938 | ||
Other liabilities, adjustment | 22 | ||
Total liabilities assumed | 191,154 | ||
Total liabilities assumed, adjustment | 22 | ||
Net identifiable assets acquired over liabilities assumed | 23,864 | ||
Net identifiable assets acquired over liabilities assumed, adjustment | 3,336 | ||
Goodwill | $ 11,000 | $ 11,000 | $ 11,043 |
Note 10 - Acquisition - Asset_2
Note 10 - Acquisition - Assets and Liabilities Acquired (Details) (Parentheticals) - $ / shares | Jan. 31, 2019 | Jun. 30, 2019 |
Shares issued (in shares) | 1,834,142 | 1,834,142 |
Price per share (in dollars per share) | $ 10.69 |
Note 10 - Acquisition - Future
Note 10 - Acquisition - Future Estimated Amortization Expense (Details) - Merchants Holding Company [Member] - Core Deposits [Member] $ in Thousands | Jun. 30, 2019USD ($) |
2019 | $ 272 |
2020 | 544 |
2021 | 544 |
2022 | 544 |
2023 | 544 |
Thereafter | 1,678 |
Total | $ 4,126 |
Note 10 - Acquisition - Pro For
Note 10 - Acquisition - Pro Forma Revenue and Earnings (Details) - Merchants Holding Company [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net interest income | $ 13,495 | $ 12,929 | $ 26,694 | $ 25,603 | |
Net income | $ 3,644 | [1] | $ 4,011 | $ 5,913 | $ 7,603 |
[1] | Net income for the three months ended March 31, 2019 includes acquisition-related costs of $1.9 million. |