Title of Each Class
|
|
Trading Symbol
|
|
Name of Each Exchange on Which Registered
|
Common Stock, par value $0.01 per share
|
|
PPBI
|
|
NASDAQ Stock Market
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
•
|
The strength of the United States economy in general and the strength of the local economies in which we conduct operations;
|
•
|
The effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve”);
|
•
|
Inflation/deflation, interest rate, market and monetary fluctuations;
|
•
|
The effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) or other accounting standards setters, including Accounting Standards Update (“ASU” or “Update”) 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss (“CECL”) model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption on January 1, 2020;
|
•
|
The effect of acquisitions we may make, such as our pending acquisition of Opus Bank, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations;
|
•
|
The timely development of competitive new products and services and the acceptance of these products and services by new and existing customers;
|
•
|
The impact of changes in financial services policies, laws and regulations, including those concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies;
|
•
|
Uncertainty relating to the London Interbank Offering Rate (“LIBOR”) calculation process and potential phasing out of LIBOR after 2021;
|
•
|
The effectiveness of our risk management framework and quantitative models;
|
•
|
Changes in the level of our nonperforming assets and charge-offs;
|
•
|
Deterioration in the value of its investment securities;
|
•
|
The impact of current governmental efforts to restructure the U.S. financial regulatory system, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”);
|
•
|
Changes in consumer spending, borrowing and savings habits;
|
•
|
The effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations;
|
•
|
Our ability to attract deposits and other sources of liquidity;
|
•
|
The possibility that we may reduce or discontinue the payments of dividends on common stock;
|
•
|
Changes in the financial performance and/or condition of our borrowers;
|
•
|
Changes in the competitive environment among financial and bank holding companies and other financial service providers;
|
•
|
Geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad;
|
•
|
Cybersecurity threats and the cost of defending against them, including the costs of compliance with potential legislation to combat cybersecurity at a state, national or global level;
|
•
|
Natural disasters, earthquakes, fires, and severe weather;
|
•
|
Unanticipated regulatory, legal or judicial proceedings; and
|
•
|
Our ability to manage the risks involved in the foregoing.
|
•
|
Expansion through Organic Growth. Over the past several years, our highly disciplined business development process has been enhanced through our investment in technology and the customization of our Salesforce platform. This technology enabled business development approach allows our relationship managers the ability to consistently generate business with new and existing clients. Market Presidents with in-depth commercial banking knowledge and expertise systematically manage the business development efforts of their respective teams of relationship managers within specific geographic areas.
|
•
|
Expansion through Acquisitions. Our acquisition strategy is twofold: first, we seek to acquire whole banks within and contiguous to the State of California to expand geographically and/or to consolidate in our existing markets; and second, we seek to acquire lines of business that we believe will complement our existing business banking strategy. We have completed ten acquisitions since 2010, the first two of which were FDIC-assisted transactions and all other bank transactions were whole bank acquisitions. We intend to continue to pursue acquisitions of banks and other lines of business that complement our commercial banking strategy.
|
•
|
a minimum ratio of CET1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer”, or 7%;
|
•
|
a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer, or 8.5%;
|
•
|
a minimum ratio of Total (Tier 1 plus Tier 2) capital to risk-weighted assets of at least 8.0%, plus the capital conservation buffer, or 10.5%; and
|
•
|
a minimum leverage ratio of 4%, calculated as the ratio of Tier 1 capital to balance sheet exposures plus certain off-balance sheet exposures.
|
Capital Category
|
Total Risk-Based
Capital Ratio
|
|
Tier 1 Risk-Based
Capital Ratio
|
|
Common Equity
Tier 1 (CET1) Capital Ratio
|
|
Leverage Ratio
|
|
Tangible Equity
to Assets
|
|
Supplemental
Leverage Ratio
|
Well Capitalized
|
10% or greater
|
|
8% or greater
|
|
6.5% or greater
|
|
5% or greater
|
|
n/a
|
|
n/a
|
Adequately Capitalized
|
8% or greater
|
|
6% or greater
|
|
4.5% or greater
|
|
4% or greater
|
|
n/a
|
|
3% or greater
|
Undercapitalized
|
Less than 8%
|
|
Less than 6%
|
|
Less than 4.5%
|
|
Less than 4%
|
|
n/a
|
|
Less than 3%
|
Significantly Undercapitalized
|
Less than 6%
|
|
Less than 4%
|
|
Less than 3%
|
|
Less than 3%
|
|
n/a
|
|
n/a
|
Critically Undercapitalized
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
Less than 2%
|
|
n/a
|
•
|
economic conditions that negatively affect real estate values and the job market may result, in the deterioration of the credit quality of our loan portfolio, and such deterioration in credit quality could have a negative impact on our business;
|
•
|
a decrease in the demand for loans and other products and services offered by us;
|
•
|
a decrease in deposit balances, including low-cost and non-interest bearing deposits, due to overall reductions in the accounts of customers;
|
•
|
a decrease in the value of our loans or other assets secured by commercial or residential real estate;
|
•
|
a decrease in net interest income derived from our lending and deposit gathering activities;
|
•
|
sustained weakness in our markets may affect consumer confidence levels and may cause adverse changes in payment patterns, causing increases in delinquencies and default rates on loans and other credit facilities;
|
•
|
the processes we use to estimate ALLL (and ACL under the CECL methodology beginning on January 1, 2020) and reserves may no longer be reliable because they rely on complex judgments, including forecasts of economic conditions, which may no longer be capable of accurate estimation; and
|
•
|
our ability to assess the creditworthiness of our customers may be impaired if the methodologies and approaches we use become less effective in controlling charge-offs.
|
•
|
historical experience with our loans;
|
•
|
industry historical losses as reported by the FDIC;
|
•
|
internal credit risk grades of loans in our loan portfolio;
|
•
|
evaluation of current economic conditions;
|
•
|
regular reviews of the quality, mix and size of our loan portfolio;
|
•
|
regular reviews of delinquencies;
|
•
|
the quality of the collateral underlying our loans; and
|
•
|
the effect of external factors, such as competition, legal developments and regulatory requirements.
|
•
|
changes or weaknesses in specific industry segments, including weakness affecting the business’ customer base;
|
•
|
changes in consumer behavior and a business’s personnel;
|
•
|
increases in supplier costs and operating costs that cannot be passed along to customers; and
|
•
|
changes in competition.
|
•
|
declines in real estate values, rental rates and occupancy rates;
|
•
|
increases in other operating expenses (including energy costs);
|
•
|
demand for the type of property or high-end home in question; and
|
•
|
the availability of property financing.
|
•
|
changes in consumer behavior and changes or weakness in employment and wage income;
|
•
|
declines in real estate values or rental rates;
|
•
|
increases in association operating expenses; and
|
•
|
the availability of property financing.
|
•
|
the cyclical nature of the agriculture industry;
|
•
|
fluctuating commodity prices;
|
•
|
changing climatic conditions, including drought conditions, which adversely impact agricultural customers’ operating costs, crop yields and crop quality and could impact such customers’ ability to repay loans;
|
•
|
the imposition of tariffs and retaliatory tariffs or other trade restrictions on agricultural products and materials that our clients import or export; and
|
•
|
increases in operating expenses and changes in real estate values.
|
•
|
Inaccurate management decisions regarding the fair value of assets and liabilities acquired which could materially affect our financial condition;
|
•
|
Natural disasters, fires, and severe weather;
|
•
|
Internal controls may fail;
|
•
|
Reliance on other companies to provide key components of our business processes;
|
•
|
Meeting capital adequacy standards and the need to raise additional capital in the future if needed, including through future sales of our common stock;
|
•
|
Actual or anticipated variations in quarterly results of operations;
|
•
|
Recommendations by securities analysts;
|
•
|
Failure of securities analysts to cover, or continue to cover, us;
|
•
|
Operating and stock price performance of other companies that investors deem comparable to us;
|
•
|
News reports relating to trends, concerns and other issues in the financial services industry, including the failures of other financial institutions in the current economic downturn;
|
•
|
Perceptions in the marketplace regarding us and/or our competitors;
|
•
|
Departure of our management team or other key personnel;
|
•
|
Cyber security breaches of the company or contracted partners;
|
•
|
New technology used, or services offered, by competitors;
|
•
|
Significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors;
|
•
|
Failure to integrate acquisitions or realize anticipated benefits from acquisitions;
|
•
|
Existing or increased regulatory and compliance requirements, changes or proposed changes in laws or regulations, or differing interpretations thereof affecting our business, or enforcement of these laws and regulations;
|
•
|
Litigation and governmental investigations;
|
•
|
Changes in government regulations; and
|
•
|
Geopolitical and public health conditions such as acts or threats of terrorism, military conflicts and pandemics.
|
Plan Category
|
|
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
|
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
|
|
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans
|
|
||||
Equity compensation plans approved by security holders:
|
|
|
|
|
|
||||||
Pacific Premier Bancorp, Inc. 2004 Long-term Incentive Plan
|
|
3,000
|
|
|
$
|
6.30
|
|
|
—
|
|
|
Pacific Premier Bancorp, Inc. Amended and Restated 2012 Stock Long-term Incentive Plan
|
|
576,821
|
|
|
15.85
|
|
|
2,879,949
|
|
|
|
Heritage Oaks Bancorp, Inc. 2005 Equity Incentive Plan
|
|
25,677
|
|
|
18.61
|
|
|
—
|
|
|
|
Heritage Oaks Bancorp, Inc. 2015 Equity Incentive Plan
|
|
24,961
|
|
|
21.63
|
|
|
655,429
|
|
(3)
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total equity compensation plans
|
|
630,459
|
|
(1)
|
$
|
16.26
|
|
(2)
|
3,535,378
|
|
(4)
|
|
|
|
|
|
|
|
|
Total Return Analysis
|
|
12/31/2014
|
|
12/31/2015
|
|
12/30/2016
|
|
12/29/2017
|
|
12/31/2018
|
|
12/31/2019
|
||||||||||||
Pacific Premier Bancorp, Inc.
|
|
$
|
100.00
|
|
|
$
|
122.62
|
|
|
$
|
203.98
|
|
|
$
|
230.81
|
|
|
$
|
147.26
|
|
|
$
|
188.11
|
|
NASDAQ Composite Index
|
|
100.00
|
|
|
105.73
|
|
|
113.66
|
|
|
145.76
|
|
|
140.1
|
|
|
188.89
|
|
||||||
NASDAQ Bank Stocks Index
|
|
100.00
|
|
|
106.62
|
|
|
143.97
|
|
|
149.02
|
|
|
122.35
|
|
|
148.24
|
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
|
|||||
October 1, 2019 to October 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
—
|
|
November 1, 2019 to November 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
December 1, 2019 to December 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,000,000
|
|
|
Total
|
|
—
|
|
|
|
|
—
|
|
|
|
•
|
Tangible common equity: Total stockholders’ equity is reduced by the amount of intangible assets, including goodwill.
|
•
|
Tangible common equity amounts and ratios, tangible assets and tangible book value per share: Given that the use of these measures is prevalent among banking regulators, investors and analysts, we disclose them in addition to equity-to-assets ratio, total assets and book value per share, respectively.
|
•
|
Efficiency ratio: This figure represents the ratio of noninterest expense less other real estate owned operations, core deposit intangible amortization and merger-related expense to the sum of net interest income before provision for loan losses and total noninterest income, less gain/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities, gain/(loss) on sale of other real estate owned and gain/(loss) from debt extinguishment.
|
•
|
Return on average tangible common equity: This figure is calculated by excluding CDI amortization expense and excluding the average CDI and average goodwill from the average stockholders’ equity during the period.
|
•
|
Core net interest income and core net interest margin: Core net interest income is calculated by excluding scheduled accretion income, accelerated accretion income, CD mark-to-market and nonrecurring nonaccrual interest paid from net interest income. The core net interest margin is calculated as the ratio of core net interest income to average interest-earning assets.
|
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Total stockholders’ equity
|
|
$
|
2,012,594
|
|
|
$
|
1,969,697
|
|
|
$
|
1,241,996
|
|
Less: intangible assets
|
|
891,634
|
|
|
909,282
|
|
|
536,343
|
|
|||
Tangible common equity
|
|
$
|
1,120,960
|
|
|
$
|
1,060,415
|
|
|
$
|
705,653
|
|
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
11,776,012
|
|
|
$
|
11,487,387
|
|
|
$
|
8,024,501
|
|
Less: intangible assets
|
|
891,634
|
|
|
909,282
|
|
|
536,343
|
|
|||
Tangible assets
|
|
$
|
10,884,378
|
|
|
$
|
10,578,105
|
|
|
$
|
7,488,158
|
|
|
|
|
|
|
|
|
||||||
Common equity ratio
|
|
17.09
|
%
|
|
17.15
|
%
|
|
15.48
|
%
|
|||
Less: intangible equity ratio
|
|
6.79
|
|
|
7.13
|
|
|
6.06
|
|
|||
Tangible common equity ratio
|
|
10.30
|
%
|
|
10.02
|
%
|
|
9.42
|
%
|
|||
|
|
|
|
|
|
|
||||||
Basic shares outstanding
|
|
59,506,057
|
|
|
62,480,755
|
|
|
46,245,050
|
|
|||
|
|
|
|
|
|
|
||||||
Book value per share
|
|
$
|
33.82
|
|
|
$
|
31.52
|
|
|
$
|
26.86
|
|
Less: intangible book value per share
|
|
14.98
|
|
|
14.55
|
|
|
11.60
|
|
|||
Tangible book value per share
|
|
$
|
18.84
|
|
|
$
|
16.97
|
|
|
$
|
15.26
|
|
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Total noninterest expense
|
|
$
|
259,065
|
|
|
$
|
249,905
|
|
|
$
|
167,958
|
|
Less: CDI amortization
|
|
17,245
|
|
|
13,594
|
|
|
6,144
|
|
|||
Less: merger-related expense
|
|
656
|
|
|
18,454
|
|
|
21,002
|
|
|||
Less: other real estate owned operations, net
|
|
160
|
|
|
4
|
|
|
72
|
|
|||
Noninterest expense, adjusted
|
|
$
|
241,004
|
|
|
$
|
217,853
|
|
|
$
|
140,740
|
|
|
|
|
|
|
|
|
||||||
Net interest income before provision for loan losses
|
|
$
|
447,301
|
|
|
$
|
392,711
|
|
|
$
|
247,502
|
|
Add: total noninterest income
|
|
35,236
|
|
|
31,027
|
|
|
31,114
|
|
|||
Less: net gain loss from investment securities
|
|
8,571
|
|
|
1,399
|
|
|
2,737
|
|
|||
Less: recoveries of OTTI impairment- securities
|
|
2
|
|
|
4
|
|
|
1
|
|
|||
Less: net gain (loss) from other real estate owned
|
|
52
|
|
|
281
|
|
|
46
|
|
|||
Less: net gain (loss) from debt extinguishment
|
|
(612
|
)
|
|
—
|
|
|
—
|
|
|||
Revenue, adjusted
|
|
$
|
474,524
|
|
|
$
|
422,054
|
|
|
$
|
275,832
|
|
|
|
|
|
|
|
|
||||||
Efficiency ratio
|
|
50.8
|
%
|
|
51.6
|
%
|
|
51.0
|
%
|
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Net income
|
|
$
|
159,718
|
|
|
$
|
123,340
|
|
|
$
|
60,100
|
|
Plus: CDI amortization expense
|
|
17,245
|
|
|
13,594
|
|
|
6,144
|
|
|||
Less: CDI amortization expense tax adjustment (1)
|
|
4,986
|
|
|
3,948
|
|
|
2,272
|
|
|||
Net income for average tangible common equity
|
|
$
|
171,977
|
|
|
$
|
132,986
|
|
|
$
|
63,972
|
|
|
|
|
|
|
|
|
||||||
Average stockholders’ equity
|
|
$
|
1,996,761
|
|
|
$
|
1,599,886
|
|
|
$
|
890,856
|
|
Less: average CDI
|
|
92,339
|
|
|
73,683
|
|
|
30,270
|
|
|||
Less: average goodwill
|
|
808,535
|
|
|
651,550
|
|
|
325,859
|
|
|||
Average tangible common equity
|
|
$
|
1,095,887
|
|
|
$
|
874,653
|
|
|
$
|
534,727
|
|
|
|
|
|
|
|
|
||||||
Return on average equity (2)
|
|
8.00
|
%
|
|
7.71
|
%
|
|
6.75
|
%
|
|||
Return on average tangible common equity (2)
|
|
15.69
|
%
|
|
15.20
|
%
|
|
11.96
|
%
|
|||
|
|
|
|
|
|
|
||||||
(1) CDI amortization expense adjusted by statutory tax rate.
|
|
|
|
|
|
|
||||||
(2) Ratio is annualized.
|
|
|
|
|
|
|
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Net interest income
|
|
$
|
447,301
|
|
|
$
|
392,711
|
|
|
$
|
247,502
|
|
Less: scheduled accretion income
|
|
9,151
|
|
|
9,164
|
|
|
9,144
|
|
|||
Less: accelerated accretion income
|
|
11,458
|
|
|
6,918
|
|
|
3,757
|
|
|||
Less: premium amortization on CD
|
|
521
|
|
|
1,551
|
|
|
969
|
|
|||
Less: nonrecurring nonaccrual interest paid
|
|
470
|
|
|
380
|
|
|
—
|
|
|||
Core net interest income
|
|
$
|
425,701
|
|
|
$
|
374,698
|
|
|
$
|
233,632
|
|
|
|
|
|
|
|
|
||||||
Average interest-earning assets
|
|
$
|
10,319,552
|
|
|
$
|
8,836,075
|
|
|
$
|
5,583,774
|
|
|
|
|
|
|
|
|
||||||
Net interest margin
|
|
4.33
|
%
|
|
4.44
|
%
|
|
4.43
|
%
|
|||
Core net interest margin
|
|
4.13
|
%
|
|
4.24
|
%
|
|
4.18
|
%
|
•
|
interest income earned from average interest-earning assets and the resultant yields; and
|
•
|
interest expense incurred from average interest-bearing liabilities and resultant costs, expressed as rates.
|
•
|
Changes in volume (changes in volume multiplied by the prior period rate);
|
•
|
Changes in interest rates (changes in interest rates multiplied by the prior period volume); and
|
•
|
The net change or the combined impact of volume and rate changes allocated proportionately to changes in volume and changes in interest rates.
|
|
Year Ended December 31, 2019
Compared to Year Ended December 31, 2018 Increase (Decrease) Due to |
|
Year Ended December 31, 2018
Compared to Year Ended December 31, 2017 Increase (Decrease) Due to |
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||
Interest-Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
(288
|
)
|
|
$
|
(618
|
)
|
|
$
|
(906
|
)
|
|
$
|
628
|
|
|
$
|
653
|
|
|
$
|
1,281
|
|
Investment securities
|
7,898
|
|
|
439
|
|
|
8,337
|
|
|
10,225
|
|
|
2,529
|
|
|
12,754
|
|
||||||
Loans receivable, net
|
68,744
|
|
|
1,509
|
|
|
70,253
|
|
|
154,121
|
|
|
10,262
|
|
|
164,383
|
|
||||||
Total interest-earning assets
|
76,354
|
|
|
1,330
|
|
|
77,684
|
|
|
164,974
|
|
|
13,444
|
|
|
178,418
|
|
||||||
Interest-Bearing Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking
|
350
|
|
|
823
|
|
|
1,173
|
|
|
227
|
|
|
575
|
|
|
802
|
|
||||||
Money market
|
3,497
|
|
|
5,215
|
|
|
8,712
|
|
|
4,908
|
|
|
7,939
|
|
|
12,847
|
|
||||||
Savings
|
1
|
|
|
24
|
|
|
25
|
|
|
68
|
|
|
38
|
|
|
106
|
|
||||||
Retail certificates of deposit
|
1,624
|
|
|
5,246
|
|
|
6,870
|
|
|
3,274
|
|
|
3,810
|
|
|
7,084
|
|
||||||
Wholesale/brokered certificates of deposit
|
1,043
|
|
|
2,821
|
|
|
3,864
|
|
|
1,143
|
|
|
2,300
|
|
|
3,443
|
|
||||||
FHLB advances and other borrowings
|
(5,361
|
)
|
|
3,847
|
|
|
(1,514
|
)
|
|
3,648
|
|
|
3,284
|
|
|
6,932
|
|
||||||
Subordinated debentures
|
4,690
|
|
|
(726
|
)
|
|
3,964
|
|
|
1,429
|
|
|
566
|
|
|
1,995
|
|
||||||
Total interest-bearing liabilities
|
5,844
|
|
|
17,250
|
|
|
23,094
|
|
|
14,697
|
|
|
18,512
|
|
|
33,209
|
|
||||||
Changes in net interest income
|
$
|
70,510
|
|
|
$
|
(15,920
|
)
|
|
$
|
54,590
|
|
|
$
|
150,277
|
|
|
$
|
(5,068
|
)
|
|
$
|
145,209
|
|
|
|
For the Year Ended December 31,
|
|||||||
|
|
2019
|
|
2018
|
|
2017
|
|||
Provision for Credit Losses
|
|
(dollars in thousands)
|
|||||||
Provision for loans and lease losses
|
|
7,135
|
|
|
8,156
|
|
|
8,640
|
|
Provision for unfunded commitments
|
|
(1,363
|
)
|
|
163
|
|
|
(208
|
)
|
Provision for sold loans
|
|
(53
|
)
|
|
(66
|
)
|
|
—
|
|
Total provision for credit losses
|
|
5,719
|
|
|
8,253
|
|
|
8,432
|
|
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Noninterest Income
|
|
(dollars in thousands)
|
||||||||||
Loan servicing fees
|
|
$
|
1,840
|
|
|
$
|
1,445
|
|
|
$
|
787
|
|
Service charges on deposit accounts
|
|
5,769
|
|
|
5,128
|
|
|
3,273
|
|
|||
Other service fee income
|
|
1,438
|
|
|
902
|
|
|
1,847
|
|
|||
Debit card interchange fee income
|
|
3,004
|
|
|
4,326
|
|
|
2,043
|
|
|||
Earnings on BOLI
|
|
3,486
|
|
|
3,427
|
|
|
2,279
|
|
|||
Net gain from sales of loans
|
|
6,642
|
|
|
10,759
|
|
|
12,468
|
|
|||
Net gain from sales of investment securities
|
|
8,571
|
|
|
1,399
|
|
|
2,737
|
|
|||
Other income
|
|
4,486
|
|
|
3,641
|
|
|
5,680
|
|
|||
Total noninterest income
|
|
$
|
35,236
|
|
|
$
|
31,027
|
|
|
$
|
31,114
|
|
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Noninterest Expense
|
|
(dollars in thousands)
|
||||||||||
Compensation and benefits
|
|
$
|
139,187
|
|
|
$
|
129,886
|
|
|
$
|
84,138
|
|
Premises and occupancy
|
|
30,758
|
|
|
24,544
|
|
|
14,742
|
|
|||
Data processing
|
|
12,301
|
|
|
13,412
|
|
|
8,206
|
|
|||
Other real estate owned operations, net
|
|
160
|
|
|
4
|
|
|
72
|
|
|||
FDIC insurance premiums
|
|
764
|
|
|
3,002
|
|
|
2,151
|
|
|||
Legal, audit and professional expense
|
|
12,869
|
|
|
10,040
|
|
|
6,101
|
|
|||
Marketing expense
|
|
6,402
|
|
|
6,151
|
|
|
4,436
|
|
|||
Office, telecommunications and postage expense
|
|
4,826
|
|
|
5,312
|
|
|
3,117
|
|
|||
Loan expense
|
|
4,079
|
|
|
3,370
|
|
|
3,299
|
|
|||
Deposit expense
|
|
15,266
|
|
|
9,916
|
|
|
6,240
|
|
|||
Merger-related expense
|
|
656
|
|
|
18,454
|
|
|
21,002
|
|
|||
CDI amortization
|
|
17,245
|
|
|
13,594
|
|
|
6,144
|
|
|||
Other expense
|
|
14,552
|
|
|
12,220
|
|
|
8,310
|
|
|||
Total noninterest expense
|
|
$
|
259,065
|
|
|
$
|
249,905
|
|
|
$
|
167,958
|
|
|
At December 31,
|
|||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
% Portfolio
|
|
Amortized
Cost
|
|
Fair
Value
|
|
% Portfolio
|
|
Amortized
Cost
|
|
Fair
Value
|
|
% Portfolio
|
|||||||||||||||
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||
Investment Securities Available-for-Sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury
|
$
|
60,457
|
|
|
$
|
63,555
|
|
|
4.5
|
%
|
|
$
|
59,688
|
|
|
$
|
60,912
|
|
|
5.3
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
Agency
|
240,348
|
|
|
246,358
|
|
|
17.5
|
|
|
128,958
|
|
|
130,070
|
|
|
11.3
|
|
|
47,051
|
|
|
47,209
|
|
|
5.9
|
|
||||||
Corporate debt
|
149,150
|
|
|
151,353
|
|
|
10.8
|
|
|
104,158
|
|
|
103,543
|
|
|
9.0
|
|
|
78,155
|
|
|
79,546
|
|
|
9.9
|
|
||||||
Municipal bonds
|
384,032
|
|
|
397,298
|
|
|
28.2
|
|
|
238,914
|
|
|
238,630
|
|
|
20.8
|
|
|
228,929
|
|
|
232,128
|
|
|
28.8
|
|
||||||
Collateralized mortgage obligation: residential
|
9,869
|
|
|
9,984
|
|
|
0.7
|
|
|
24,699
|
|
|
24,338
|
|
|
2.1
|
|
|
33,984
|
|
|
33,781
|
|
|
4.2
|
|
||||||
Mortgage-backed securities: residential
|
494,404
|
|
|
499,836
|
|
|
35.6
|
|
|
554,751
|
|
|
545,729
|
|
|
47.6
|
|
|
398,664
|
|
|
394,765
|
|
|
49.0
|
|
||||||
Total investment securities available-for-sale
|
1,338,260
|
|
|
1,368,384
|
|
|
97.3
|
|
|
1,111,168
|
|
|
1,103,222
|
|
|
96.1
|
|
|
786,783
|
|
|
787,429
|
|
|
97.8
|
|
||||||
Investment Securities Held-to-Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgage-backed securities: residential
|
36,114
|
|
|
37,036
|
|
|
2.6
|
|
|
43,381
|
|
|
42,843
|
|
|
3.7
|
|
|
17,153
|
|
|
16,944
|
|
|
2.1
|
|
||||||
Other
|
1,724
|
|
|
1,724
|
|
|
0.1
|
|
|
1,829
|
|
|
1,829
|
|
|
0.2
|
|
|
1,138
|
|
|
1,138
|
|
|
0.1
|
|
||||||
Total investment securities held-to-maturity
|
37,838
|
|
|
38,760
|
|
|
2.7
|
|
|
45,210
|
|
|
44,672
|
|
|
3.9
|
|
|
18,291
|
|
|
18,082
|
|
|
2.2
|
|
||||||
Total investment securities
|
$
|
1,376,098
|
|
|
$
|
1,407,144
|
|
|
100
|
%
|
|
$
|
1,156,378
|
|
|
$
|
1,147,894
|
|
|
100
|
%
|
|
$
|
805,074
|
|
|
$
|
805,511
|
|
|
100
|
%
|
|
At December 31, 2019
|
|||||||||||||||||||||||||||||||||
|
Due in One Year
or Less |
|
Due after One Year
through Five Years |
|
Due after Five Years
through Ten Years |
|
Due after
Ten Years |
|
Total
|
|||||||||||||||||||||||||
|
Fair
Value
|
|
Weighted
Average
Yield
|
|
Fair
Value
|
|
Weighted
Average
Yield
|
|
Fair
Value
|
|
Weighted
Average
Yield
|
|
Fair
Value
|
|
Weighted
Average
Yield
|
|
Fair
Value
|
|
Weighted
Average
Yield
|
|||||||||||||||
|
(dollars in thousands)
|
|
|
|||||||||||||||||||||||||||||||
Investment Securities Available-for-Sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury
|
$
|
500
|
|
|
2.51
|
%
|
|
$
|
20,586
|
|
|
2.26
|
%
|
|
$
|
42,469
|
|
|
2.90
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
63,555
|
|
|
2.68
|
%
|
Agency
|
1,014
|
|
|
3.08
|
|
|
42,162
|
|
|
2.72
|
|
|
169,070
|
|
|
2.39
|
|
|
34,112
|
|
|
3.00
|
|
|
246,358
|
|
|
2.53
|
|
|||||
Corporate debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137,518
|
|
|
4.22
|
|
|
13,835
|
|
|
3.97
|
|
|
151,353
|
|
|
4.20
|
|
|||||
Municipal bonds
|
—
|
|
|
—
|
|
|
1,952
|
|
|
2.60
|
|
|
26,996
|
|
|
2.26
|
|
|
368,350
|
|
|
2.83
|
|
|
397,298
|
|
|
2.79
|
|
|||||
Collateralized mortgage obligation: residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
603
|
|
|
2.08
|
|
|
9,381
|
|
|
2.67
|
|
|
9,984
|
|
|
2.63
|
|
|||||
Mortgage-backed securities: residential
|
—
|
|
|
—
|
|
|
2,352
|
|
|
3.37
|
|
|
195,933
|
|
|
2.67
|
|
|
301,551
|
|
|
2.62
|
|
|
499,836
|
|
|
2.65
|
|
|||||
Total investment securities available-for-sale
|
1,514
|
|
|
2.89
|
|
|
67,052
|
|
|
2.60
|
|
|
572,589
|
|
|
2.96
|
|
|
727,229
|
|
|
2.77
|
|
|
1,368,384
|
|
|
2.84
|
|
|||||
Investment Securities Held-to-Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities: residential
|
—
|
|
|
—
|
|
|
942
|
|
|
3.13
|
|
|
—
|
|
|
—
|
|
|
36,094
|
|
|
3.08
|
|
|
37,036
|
|
|
3.08
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,724
|
|
|
0.97
|
|
|
1,724
|
|
|
0.97
|
|
|||||
Total investment securities held-to-maturity
|
—
|
|
|
—
|
|
|
942
|
|
|
3.13
|
|
|
—
|
|
|
—
|
|
|
37,818
|
|
|
2.99
|
|
|
38,760
|
|
|
2.99
|
|
|||||
Total investment securities
|
$
|
1,514
|
|
|
2.89
|
%
|
|
$
|
67,994
|
|
|
2.61
|
%
|
|
$
|
572,589
|
|
|
2.96
|
%
|
|
$
|
765,047
|
|
|
2.78
|
%
|
|
$
|
1,407,144
|
|
|
2.85
|
%
|
|
At December 31,
|
||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
% Capital
|
|
Amortized
Cost
|
|
Fair
Value
|
|
% Capital
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||
Issuer
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GNMA
|
$
|
5,785
|
|
|
$
|
5,823
|
|
|
0.3
|
%
|
|
$
|
27,048
|
|
|
$
|
26,402
|
|
|
1.3
|
%
|
FNMA
|
369,371
|
|
|
373,010
|
|
|
18.5
|
|
|
361,687
|
|
|
357,110
|
|
|
18.1
|
|
||||
FHLMC
|
165,231
|
|
|
167,101
|
|
|
8.3
|
|
|
234,096
|
|
|
229,936
|
|
|
11.7
|
|
|
At December 31, 2019
|
|||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
% Municipal
|
|||||
|
(dollars in thousands)
|
|||||||||
Issuer
|
|
|
|
|
|
|||||
Texas
|
$
|
205,153
|
|
|
$
|
211,762
|
|
|
53.3
|
%
|
California
|
49,171
|
|
|
51,848
|
|
|
13.1
|
|
||
Other
|
129,708
|
|
|
133,688
|
|
|
33.6
|
|
||
Total municipal securities
|
$
|
384,032
|
|
|
$
|
397,298
|
|
|
100.0
|
%
|
|
At December 31,
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
Amount
|
|
% of Total
|
|
Weighted Average Interest Rate
|
|
Amount
|
|
% of Total
|
|
Weighted Average Interest Rate
|
|
Amount
|
|
% of Total
|
|
Weighted Average Interest Rate
|
||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Business Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
1,265,185
|
|
|
14.5
|
%
|
|
5.22
|
%
|
|
$
|
1,364,423
|
|
|
15.4
|
%
|
|
5.83
|
%
|
|
$
|
1,086,659
|
|
|
17.5
|
%
|
|
5.18
|
%
|
Franchise
|
916,875
|
|
|
10.5
|
|
|
5.58
|
|
|
765,416
|
|
|
8.7
|
|
|
5.40
|
|
|
660,414
|
|
|
10.7
|
|
|
5.23
|
|
|||
Commercial owner occupied (1)
|
1,674,092
|
|
|
19.2
|
|
|
4.85
|
|
|
1,679,122
|
|
|
19.0
|
|
|
4.94
|
|
|
1,289,213
|
|
|
20.8
|
|
|
5.01
|
|
|||
SBA
|
175,815
|
|
|
2.0
|
|
|
6.82
|
|
|
193,882
|
|
|
2.2
|
|
|
7.17
|
|
|
185,514
|
|
|
3.0
|
|
|
6.30
|
|
|||
Agribusiness
|
127,834
|
|
|
1.4
|
|
|
4.92
|
|
|
138,519
|
|
|
1.6
|
|
|
5.46
|
|
|
116,066
|
|
|
1.9
|
|
|
4.62
|
|
|||
Total business loans
|
4,159,801
|
|
|
47.6
|
|
|
5.21
|
|
|
4,141,362
|
|
|
46.9
|
|
|
5.44
|
|
|
3,337,866
|
|
|
53.9
|
|
|
5.16
|
|
|||
Real Estate Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial non-owner occupied
|
2,072,374
|
|
|
23.7
|
|
|
4.61
|
|
|
2,003,174
|
|
|
22.6
|
|
|
4.67
|
|
|
1,243,115
|
|
|
20.0
|
|
|
4.60
|
|
|||
Multi-family
|
1,576,870
|
|
|
18.1
|
|
|
4.30
|
|
|
1,535,289
|
|
|
17.4
|
|
|
4.33
|
|
|
794,384
|
|
|
12.8
|
|
|
4.29
|
|
|||
One-to-four family (2)
|
254,779
|
|
|
2.9
|
|
|
4.78
|
|
|
356,264
|
|
|
4.0
|
|
|
5.01
|
|
|
270,894
|
|
|
4.4
|
|
|
4.63
|
|
|||
Construction
|
410,065
|
|
|
4.7
|
|
|
5.99
|
|
|
523,643
|
|
|
5.9
|
|
|
6.74
|
|
|
282,811
|
|
|
4.6
|
|
|
6.13
|
|
|||
Farmland
|
175,997
|
|
|
2.0
|
|
|
4.71
|
|
|
150,502
|
|
|
1.7
|
|
|
4.80
|
|
|
145,393
|
|
|
2.3
|
|
|
4.52
|
|
|||
Land
|
31,090
|
|
|
0.4
|
|
|
5.45
|
|
|
46,628
|
|
|
0.5
|
|
|
5.61
|
|
|
31,233
|
|
|
0.5
|
|
|
5.72
|
|
|||
Total real estate loans
|
4,521,175
|
|
|
51.8
|
|
|
4.65
|
|
|
4,615,500
|
|
|
52.1
|
|
|
4.83
|
|
|
2,767,830
|
|
|
44.6
|
|
|
4.68
|
|
|||
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
50,922
|
|
|
0.6
|
|
|
3.96
|
|
|
89,424
|
|
|
1.0
|
|
|
5.60
|
|
|
92,931
|
|
|
1.5
|
|
|
5.63
|
|
|||
Gross loans held for investment
|
8,731,898
|
|
|
100
|
%
|
|
4.91
|
%
|
|
8,846,286
|
|
|
100
|
%
|
|
5.13
|
%
|
|
6,198,627
|
|
|
100
|
%
|
|
4.95
|
%
|
|||
Deferred loan origination (fees)/costs and (discounts)/premiums, net
|
(9,587
|
)
|
|
|
|
|
|
(9,468
|
)
|
|
|
|
|
|
|
|
(2,403
|
)
|
|
|
|
|
|
|
|||||
Loans held for investment
|
8,722,311
|
|
|
|
|
|
|
8,836,818
|
|
|
|
|
|
|
6,196,224
|
|
|
|
|
|
|||||||||
Allowance for loan losses
|
(35,698
|
)
|
|
|
|
|
|
(36,072
|
)
|
|
|
|
|
|
|
|
(28,936
|
)
|
|
|
|
|
|
|
|||||
Loans held for investment, net
|
$
|
8,686,613
|
|
|
|
|
|
|
$
|
8,800,746
|
|
|
|
|
|
|
|
|
$
|
6,167,288
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for sale, at lower of cost or fair value
|
$
|
1,672
|
|
|
|
|
|
|
$
|
5,719
|
|
|
|
|
|
|
|
|
$
|
23,426
|
|
|
|
|
|
|
|
|
At December 31, 2019
|
||||||||||||||
|
Due in One Year or Less
|
|
Due after One Year through Five Years
|
|
Due after Five Years
|
|
Total
|
||||||||
|
(dollars in thousands)
|
||||||||||||||
Business loans:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
562,397
|
|
|
$
|
334,856
|
|
|
$
|
367,932
|
|
|
$
|
1,265,185
|
|
Franchise
|
30,393
|
|
|
24,055
|
|
|
862,427
|
|
|
916,875
|
|
||||
Commercial owner occupied
|
38,284
|
|
|
88,401
|
|
|
1,547,407
|
|
|
1,674,092
|
|
||||
SBA
|
374
|
|
|
3,890
|
|
|
173,223
|
|
|
177,487
|
|
||||
Agribusiness
|
53,721
|
|
|
56,296
|
|
|
17,817
|
|
|
127,834
|
|
||||
Total business loans
|
685,169
|
|
|
507,498
|
|
|
2,968,806
|
|
|
4,161,473
|
|
||||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Commercial non-owner occupied
|
94,926
|
|
|
124,963
|
|
|
1,852,486
|
|
|
2,072,375
|
|
||||
Multi-family
|
16,507
|
|
|
10,110
|
|
|
1,550,253
|
|
|
1,576,870
|
|
||||
One-to-four family
|
17,052
|
|
|
6,897
|
|
|
230,830
|
|
|
254,779
|
|
||||
Construction
|
276,557
|
|
|
69,862
|
|
|
63,646
|
|
|
410,065
|
|
||||
Farmland
|
5,512
|
|
|
31,392
|
|
|
139,092
|
|
|
175,996
|
|
||||
Land
|
12,512
|
|
|
6,849
|
|
|
11,729
|
|
|
31,090
|
|
||||
Total real estate loans
|
423,066
|
|
|
250,073
|
|
|
3,848,036
|
|
|
4,521,175
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
||||||||
Consumer loans
|
3,592
|
|
|
41,882
|
|
|
5,448
|
|
|
50,922
|
|
||||
Total gross loans
|
$
|
1,111,827
|
|
|
$
|
799,453
|
|
|
$
|
6,822,290
|
|
|
$
|
8,733,570
|
|
|
At December 31, 2019
Loans Due After December 31, 2020 |
||||||||||
|
Fixed
|
|
Adjustable
|
|
Total
|
||||||
|
(dollars in thousands)
|
||||||||||
Business loans
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
283,482
|
|
|
$
|
419,306
|
|
|
$
|
702,788
|
|
Franchise
|
88,874
|
|
|
797,608
|
|
|
886,482
|
|
|||
Commercial owner occupied
|
504,646
|
|
|
1,131,162
|
|
|
1,635,808
|
|
|||
SBA
|
3,568
|
|
|
173,545
|
|
|
177,113
|
|
|||
Agribusiness
|
51,801
|
|
|
22,312
|
|
|
74,113
|
|
|||
Total business loans
|
932,371
|
|
|
2,543,933
|
|
|
3,476,304
|
|
|||
Real estate loans
|
|
|
|
|
|
||||||
Commercial non-owner occupied
|
642,063
|
|
|
1,335,385
|
|
|
1,977,448
|
|
|||
Multi-family
|
127,079
|
|
|
1,433,284
|
|
|
1,560,363
|
|
|||
One-to-four family
|
37,479
|
|
|
200,248
|
|
|
237,727
|
|
|||
Construction
|
33,662
|
|
|
99,846
|
|
|
133,508
|
|
|||
Farmland
|
111,007
|
|
|
59,478
|
|
|
170,485
|
|
|||
Land
|
2,873
|
|
|
15,705
|
|
|
18,578
|
|
|||
Total real estate loans
|
954,163
|
|
|
3,143,946
|
|
|
4,098,109
|
|
|||
Consumer loans
|
|
|
|
|
|
||||||
Consumer loans
|
5,710
|
|
|
41,620
|
|
|
47,330
|
|
|||
Total gross loans
|
$
|
1,892,244
|
|
|
$
|
5,729,499
|
|
|
$
|
7,621,743
|
|
|
30 - 59 Days
|
|
60 - 89 Days
|
|
90 Days or More (1)
|
|
Total
|
||||||||||||||||||||
|
# of
Loans
|
|
Principal
Balance
of Loans
|
|
# of
Loans
|
|
Principal
Balance
of Loans
|
|
# of
Loans
|
|
Principal
Balance
of Loans
|
|
# of
Loans
|
|
Principal
Balance
of Loans
|
||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||
At December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
7
|
|
|
$
|
422
|
|
|
6
|
|
|
$
|
826
|
|
|
2
|
|
|
$
|
2,997
|
|
|
15
|
|
|
$
|
4,245
|
|
Franchise
|
—
|
|
|
—
|
|
|
2
|
|
|
9,142
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
9,142
|
|
||||
Commercial owner occupied
|
1
|
|
|
331
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
331
|
|
||||
SBA
|
2
|
|
|
169
|
|
|
1
|
|
|
613
|
|
|
10
|
|
|
2,434
|
|
|
13
|
|
|
3,216
|
|
||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial non-owner occupied
|
2
|
|
|
1,179
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1,128
|
|
|
4
|
|
|
2,307
|
|
||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
1
|
|
|
5
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
8
|
|
||||
Total
|
13
|
|
|
$
|
2,106
|
|
|
10
|
|
|
$
|
10,583
|
|
|
15
|
|
|
$
|
6,560
|
|
|
38
|
|
|
$
|
19,249
|
|
Delinquent loans to total loans held for investment
|
|
|
0.02
|
%
|
|
|
|
|
0.12
|
%
|
|
|
|
|
0.08
|
%
|
|
|
|
|
0.22
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
At December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
6
|
|
|
$
|
309
|
|
|
4
|
|
|
$
|
1,204
|
|
|
5
|
|
|
$
|
931
|
|
|
15
|
|
|
$
|
2,444
|
|
Franchise
|
1
|
|
|
5,680
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
190
|
|
|
2
|
|
|
5,870
|
|
||||
Commercial owner occupied
|
1
|
|
|
343
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
812
|
|
|
6
|
|
|
1,155
|
|
||||
SBA
|
3
|
|
|
524
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
2,626
|
|
|
6
|
|
|
3,150
|
|
||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Multi-family
|
1
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
14
|
|
||||
One-to-four family
|
1
|
|
|
30
|
|
|
1
|
|
|
9
|
|
|
1
|
|
|
6
|
|
|
3
|
|
|
45
|
|
||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
3
|
|
|
146
|
|
|
1
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
175
|
|
||||
Total
|
16
|
|
|
$
|
7,046
|
|
|
6
|
|
|
$
|
1,242
|
|
|
15
|
|
|
$
|
4,565
|
|
|
37
|
|
|
$
|
12,853
|
|
Delinquent loans to total loans held for investment
|
|
|
0.08
|
%
|
|
|
|
|
0.02
|
%
|
|
|
|
|
0.05
|
%
|
|
|
|
|
0.15
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||
Nonperforming Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
4,637
|
|
|
$
|
931
|
|
|
$
|
1,160
|
|
|
$
|
250
|
|
|
$
|
463
|
|
Franchise
|
—
|
|
|
190
|
|
|
—
|
|
|
—
|
|
|
1,630
|
|
|||||
Commercial owner occupied
|
—
|
|
|
599
|
|
|
97
|
|
|
436
|
|
|
536
|
|
|||||
SBA
|
2,519
|
|
|
2,739
|
|
|
1,201
|
|
|
316
|
|
|
—
|
|
|||||
Total business loans
|
7,156
|
|
|
4,459
|
|
|
2,458
|
|
|
1,002
|
|
|
2,629
|
|
|||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial non-owner occupied
|
1,128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,164
|
|
|||||
One-to-four family
|
366
|
|
|
398
|
|
|
817
|
|
|
124
|
|
|
155
|
|
|||||
Land
|
—
|
|
|
—
|
|
|
9
|
|
|
15
|
|
|
21
|
|
|||||
Total real estate loans
|
1,494
|
|
|
398
|
|
|
826
|
|
|
139
|
|
|
1,340
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total nonperforming loans
|
8,650
|
|
|
4,857
|
|
|
3,284
|
|
|
1,141
|
|
|
3,970
|
|
|||||
Other real estate owned
|
441
|
|
|
147
|
|
|
326
|
|
|
460
|
|
|
1,161
|
|
|||||
Other assets owned
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming assets
|
$
|
9,091
|
|
|
$
|
5,017
|
|
|
$
|
3,610
|
|
|
$
|
1,601
|
|
|
$
|
5,131
|
|
Allowance for loan losses
|
$
|
35,698
|
|
|
$
|
36,072
|
|
|
$
|
28,936
|
|
|
$
|
21,296
|
|
|
$
|
17,317
|
|
Allowance for loan losses as a percent of total nonperforming loans, gross
|
413
|
%
|
|
743
|
%
|
|
881
|
%
|
|
1,866
|
%
|
|
436
|
%
|
|||||
Nonperforming loans as a percent of loans held for investment
|
0.10
|
|
|
0.05
|
|
|
0.05
|
|
|
0.04
|
|
|
0.18
|
|
|||||
Nonperforming assets as a percent of total assets
|
0.08
|
|
|
0.04
|
|
|
0.04
|
|
|
0.04
|
|
|
0.18
|
|
•
|
Pass classifications represent loans with a level of credit quality that contains no well-defined deficiencies or weaknesses.
|
•
|
Special Mention loans do not currently expose the Bank to a sufficient risk to warrant classification in one of the adverse categories, but possess correctable deficiencies or potential weaknesses deserving management’s close attention.
|
•
|
Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
|
•
|
Doubtful loans have all the weaknesses inherent in substandard loans, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
|
•
|
Loss loans are those that are considered uncollectible and of such little value that their continuance as assets is not warranted. Amounts classified as loss are promptly charged off.
|
|
At December 31, 2019
|
||||||||||||
|
Substandard
|
|
Doubtful
|
||||||||||
|
Gross Balance
|
|
# of Loans
|
|
Balance
|
|
# of Loans
|
||||||
|
(dollars in thousands)
|
||||||||||||
Business loans
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
15,886
|
|
|
42
|
|
|
$
|
—
|
|
|
—
|
|
Franchise
|
10,833
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||
Commercial owner occupied
|
3,534
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||
SBA
|
8,221
|
|
|
47
|
|
|
—
|
|
|
—
|
|
||
Agribusiness
|
4,496
|
|
|
11
|
|
|
—
|
|
|
—
|
|
||
Total business loans
|
42,970
|
|
|
114
|
|
|
—
|
|
|
—
|
|
||
Real estate loans
|
|
|
|
|
|
|
|
|
|
||||
Commercial non-owner occupied
|
1,128
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||
Multi-family
|
216
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||
One-to-four family
|
561
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||
Land
|
17
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||
Total real estate loans
|
1,922
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||
Consumer loans
|
|
|
|
|
|
|
|
||||||
Consumer loans
|
54
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||
Total loans
|
$
|
44,946
|
|
|
134
|
|
|
$
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
||||||
|
At December 31, 2018
|
||||||||||||
|
Substandard
|
|
Doubtful
|
||||||||||
|
Gross Balance
|
|
# of Loans
|
|
Balance
|
|
# of Loans
|
||||||
|
(dollars in thousands)
|
||||||||||||
Business loans
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
12,134
|
|
|
63
|
|
|
$
|
—
|
|
|
—
|
|
Franchise
|
190
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||
Commercial owner occupied
|
16,548
|
|
|
25
|
|
|
—
|
|
|
—
|
|
||
SBA
|
6,906
|
|
|
34
|
|
|
—
|
|
|
—
|
|
||
Agribusiness
|
13,164
|
|
|
18
|
|
|
—
|
|
|
—
|
|
||
Total business loans
|
48,942
|
|
|
141
|
|
|
—
|
|
|
—
|
|
||
Real estate loans
|
|
|
|
|
|
|
|
|
|
||||
Commercial non-owner occupied
|
5,687
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||
Multi-family
|
662
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||
One-to-four family
|
5,453
|
|
|
25
|
|
|
—
|
|
|
—
|
|
||
Farmland
|
121
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||
Land
|
488
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||
Total real estate loans
|
12,411
|
|
|
37
|
|
|
—
|
|
|
—
|
|
||
Consumer loans
|
|
|
|
|
|
|
|
||||||
Consumer loans
|
103
|
|
|
19
|
|
|
—
|
|
|
—
|
|
||
Total loans
|
$
|
61,456
|
|
|
197
|
|
|
$
|
—
|
|
|
—
|
|
•
|
changes in lending policies and procedures, including underwriting standards and collection, charge-offs and recovery practices;
|
•
|
changes in the nature and volume of the loan portfolio, as well as new types of lending;
|
•
|
changes in the experience, ability and depth of lending management and other relevant staff that may have an impact on our loan portfolio;
|
•
|
changes in the volume and severity of adversely classified or graded loans;
|
•
|
changes in the quality of our loan review system and management oversight; and
|
•
|
the existence and effect of any concentrations of credit and changes in the level of such concentrations.
|
•
|
changes in national, state or local economic business conditions and developments affecting the collectability of the portfolio, including the condition of various market segments (includes trends in real estate values, economic activity and the interest rate environment);
|
•
|
changes in the value of the underlying collateral for collateral-dependent loans; and
|
•
|
the effect of external factors, such as competition, legal developments and regulatory requirements on the level of estimated credit losses in our current loan portfolio.
|
|
For the Year Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
36,072
|
|
|
$
|
28,936
|
|
|
$
|
21,296
|
|
|
$
|
17,317
|
|
|
$
|
12,200
|
|
Provision for loan losses
|
7,135
|
|
|
8,156
|
|
|
8,640
|
|
|
8,776
|
|
|
6,425
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
2,318
|
|
|
1,411
|
|
|
1,344
|
|
|
2,802
|
|
|
484
|
|
|||||
Franchise
|
2,531
|
|
|
—
|
|
|
—
|
|
|
980
|
|
|
764
|
|
|||||
Commercial owner occupied
|
125
|
|
|
33
|
|
|
—
|
|
|
329
|
|
|
—
|
|
|||||
SBA
|
2,238
|
|
|
102
|
|
|
8
|
|
|
980
|
|
|
—
|
|
|||||
Real Estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial non-owner occupied
|
625
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|||||
One-to-four family
|
—
|
|
|
—
|
|
|
10
|
|
|
151
|
|
|
16
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
16
|
|
|
409
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total charge-offs
|
$
|
7,853
|
|
|
$
|
1,955
|
|
|
$
|
1,362
|
|
|
$
|
5,242
|
|
|
$
|
1,380
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
$
|
189
|
|
|
$
|
698
|
|
|
$
|
94
|
|
|
$
|
177
|
|
|
$
|
47
|
|
Franchise
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial owner occupied
|
46
|
|
|
47
|
|
|
105
|
|
|
25
|
|
|
—
|
|
|||||
SBA
|
78
|
|
|
169
|
|
|
127
|
|
|
193
|
|
|
8
|
|
|||||
Real Estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial non-owner occupied
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
3
|
|
|||||
One-to-four family
|
2
|
|
|
13
|
|
|
35
|
|
|
25
|
|
|
13
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
11
|
|
|
8
|
|
|
1
|
|
|
4
|
|
|
1
|
|
|||||
Total recoveries
|
344
|
|
|
935
|
|
|
362
|
|
|
445
|
|
|
72
|
|
|||||
Net loan charge-offs
|
7,509
|
|
|
1,020
|
|
|
1,000
|
|
|
4,797
|
|
|
1,308
|
|
|||||
Balance at end of period
|
$
|
35,698
|
|
|
$
|
36,072
|
|
|
$
|
28,936
|
|
|
$
|
21,296
|
|
|
$
|
17,317
|
|
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net charge-offs to average total loans, net
|
0.09
|
%
|
|
0.01
|
%
|
|
0.02
|
%
|
|
0.17
|
%
|
|
0.06
|
%
|
|||||
Allowance for loan losses to loans held for investment
|
0.41
|
%
|
|
0.41
|
%
|
|
0.47
|
%
|
|
0.66
|
%
|
|
0.77
|
%
|
|
|
At December 31,
|
||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
Balance at End of Period Applicable to
|
|
Amount
|
|
% of Loans in Category to Total Loans
|
|
Allowance as a % of Loan Category Balance
|
|
Amount
|
|
% of Loans in Category to Total Loans
|
|
Allowance as a % of Loan Category Balance
|
|
Amount
|
|
% of Loans in Category to Total Loans
|
|
Allowance as a % of Loan Category Balance
|
||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
11,334
|
|
|
14.5
|
%
|
|
0.90
|
%
|
|
$
|
10,821
|
|
|
15.4
|
%
|
|
0.79
|
%
|
|
$
|
9,721
|
|
|
17.5
|
%
|
|
0.89
|
%
|
Franchise
|
|
6,408
|
|
|
10.5
|
|
|
0.70
|
|
|
6,500
|
|
|
8.7
|
|
|
0.85
|
|
|
5,797
|
|
|
10.7
|
|
|
0.88
|
|
|||
Commercial owner occupied
|
|
1,923
|
|
|
19.2
|
|
|
0.11
|
|
|
1,386
|
|
|
19.0
|
|
|
0.08
|
|
|
767
|
|
|
20.8
|
|
|
0.06
|
|
|||
SBA
|
|
4,479
|
|
|
2.0
|
|
|
2.55
|
|
|
4,288
|
|
|
2.2
|
|
|
2.21
|
|
|
2,890
|
|
|
3.0
|
|
|
1.56
|
|
|||
Agribusiness
|
|
2,523
|
|
|
1.4
|
|
|
1.97
|
|
|
3,283
|
|
|
1.6
|
|
|
2.37
|
|
|
1,291
|
|
|
1.9
|
|
|
1.11
|
|
|||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial non-owner occupied
|
|
1,899
|
|
|
23.7
|
|
|
0.09
|
|
|
1,604
|
|
|
22.6
|
|
|
0.08
|
|
|
1,266
|
|
|
20.0
|
|
|
0.10
|
|
|||
Multi-family
|
|
729
|
|
|
18.1
|
|
|
0.05
|
|
|
725
|
|
|
17.4
|
|
|
0.05
|
|
|
607
|
|
|
12.8
|
|
|
0.08
|
|
|||
One-to-four family
|
|
655
|
|
|
2.9
|
|
|
0.26
|
|
|
805
|
|
|
4.0
|
|
|
0.23
|
|
|
803
|
|
|
4.4
|
|
|
0.30
|
|
|||
Construction
|
|
3,809
|
|
|
4.7
|
|
|
0.93
|
|
|
5,166
|
|
|
5.9
|
|
|
0.99
|
|
|
4,569
|
|
|
4.6
|
|
|
1.62
|
|
|||
Farmland
|
|
858
|
|
|
2.0
|
|
|
0.49
|
|
|
503
|
|
|
1.7
|
|
|
0.33
|
|
|
137
|
|
|
2.3
|
|
|
0.09
|
|
|||
Land
|
|
675
|
|
|
0.4
|
|
|
2.17
|
|
|
772
|
|
|
0.5
|
|
|
1.66
|
|
|
993
|
|
|
0.5
|
|
|
3.18
|
|
|||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
406
|
|
|
0.6
|
|
|
0.80
|
|
|
219
|
|
|
1.0
|
|
|
0.24
|
|
|
95
|
|
|
1.5
|
|
|
0.10
|
|
|||
Total
|
|
$
|
35,698
|
|
|
100.0
|
%
|
|
0.41
|
%
|
|
$
|
36,072
|
|
|
100.0
|
%
|
|
0.41
|
%
|
|
$
|
28,936
|
|
|
100.0
|
%
|
|
0.47
|
%
|
|
|
At December 31,
|
||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||
Balance at End of Period Applicable to
|
|
Amount
|
|
% of Loans in Category to Total Loans
|
|
Allowance as a % of Loan Category Balance
|
|
Amount
|
|
% of Loans in Category to Total Loans
|
|
Allowance as a % of Loan Category Balance
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Business Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
$
|
6,362
|
|
|
17.4
|
%
|
|
1.13
|
%
|
|
$
|
3,449
|
|
|
13.7
|
%
|
|
1.11
|
%
|
Franchise
|
|
3,845
|
|
|
14.1
|
|
|
0.84
|
|
|
3,124
|
|
|
14.5
|
|
|
0.95
|
|
||
Commercial owner occupied
|
|
1,193
|
|
|
14.0
|
|
|
0.26
|
|
|
1,870
|
|
|
13.0
|
|
|
0.63
|
|
||
SBA
|
|
1,039
|
|
|
3.0
|
|
|
1.17
|
|
|
1,500
|
|
|
2.8
|
|
|
2.79
|
|
||
Warehouse facilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
759
|
|
|
6.3
|
|
|
0.53
|
|
||
Real estate Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial non-owner occupied
|
|
1,715
|
|
|
18.1
|
|
|
0.29
|
|
|
2,048
|
|
|
18.7
|
|
|
0.49
|
|
||
Multi-family
|
|
2,927
|
|
|
21.3
|
|
|
0.42
|
|
|
1,583
|
|
|
19.0
|
|
|
0.37
|
|
||
One-to-four family
|
|
365
|
|
|
3.1
|
|
|
0.36
|
|
|
698
|
|
|
3.5
|
|
|
0.87
|
|
||
Construction
|
|
3,632
|
|
|
8.3
|
|
|
1.35
|
|
|
2,030
|
|
|
7.5
|
|
|
1.20
|
|
||
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Land
|
|
198
|
|
|
0.6
|
|
|
1.00
|
|
|
233
|
|
|
0.8
|
|
|
1.27
|
|
||
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer loans
|
|
20
|
|
|
0.1
|
|
|
0.49
|
|
|
23
|
|
|
0.2
|
|
|
0.45
|
|
||
Total
|
|
$
|
21,296
|
|
|
100.0
|
%
|
|
0.66
|
%
|
|
$
|
17,317
|
|
|
100.0
|
%
|
|
0.77
|
%
|
|
|
At December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
Balance at End of Period Applicable to
|
|
Amount
|
|
% of
Allowance
to Total
|
|
Amount
|
|
% of
Allowance to Total |
|
Amount
|
|
% of
Allowance to Total |
|
Amount
|
|
% of
Allowance to Total |
|
Amount
|
|
% of
Allowance to Total |
|||||||||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Allocated allowance
|
|
$
|
35,698
|
|
|
100.0
|
%
|
|
$
|
35,488
|
|
|
98.4
|
%
|
|
$
|
28,881
|
|
|
99.8
|
%
|
|
$
|
21,046
|
|
|
98.8
|
%
|
|
$
|
16,586
|
|
|
95.9
|
%
|
Specific allowance
|
|
—
|
|
|
—
|
|
|
584
|
|
|
1.6
|
|
|
55
|
|
|
0.2
|
|
|
250
|
|
|
1.2
|
|
|
731
|
|
|
4.1
|
|
|||||
Total
|
|
$
|
35,698
|
|
|
100.0
|
%
|
|
$
|
36,072
|
|
|
100.0
|
%
|
|
$
|
28,936
|
|
|
100.0
|
%
|
|
$
|
21,296
|
|
|
100.0
|
%
|
|
$
|
17,317
|
|
|
100.0
|
%
|
|
For the Year Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Average
Balance
|
|
Average
Yield/Cost
|
|
Average
Balance
|
|
Average
Yield/Cost
|
|
Average
Balance
|
|
Average
Yield/Cost
|
|||||||||
|
(dollars in thousands)
|
|||||||||||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Noninterest bearing checking
|
$
|
3,564,809
|
|
|
—
|
%
|
|
$
|
2,909,588
|
|
|
—
|
%
|
|
$
|
1,758,730
|
|
|
—
|
%
|
Interest bearing checking
|
549,221
|
|
|
0.43
|
|
|
438,698
|
|
|
0.27
|
|
|
293,450
|
|
|
0.12
|
|
|||
Money market
|
3,046,593
|
|
|
0.93
|
|
|
2,624,106
|
|
|
0.75
|
|
|
1,701,209
|
|
|
0.40
|
|
|||
Savings
|
242,127
|
|
|
0.16
|
|
|
241,686
|
|
|
0.15
|
|
|
189,408
|
|
|
0.13
|
|
|||
Retail certificates of deposit
|
1,017,445
|
|
|
1.75
|
|
|
897,033
|
|
|
1.22
|
|
|
556,121
|
|
|
0.61
|
|
|||
Wholesale/brokered certificates of deposit
|
389,978
|
|
|
2.43
|
|
|
334,728
|
|
|
1.68
|
|
|
227,822
|
|
|
1.16
|
|
|||
Total deposits
|
$
|
8,810,173
|
|
|
0.66
|
%
|
|
$
|
7,445,839
|
|
|
0.51
|
%
|
|
$
|
4,726,740
|
|
|
0.28
|
%
|
|
|
At December 31, 2019
|
||||||||||||||||||||||||||||
|
|
$100,000 through $250,000
|
|
Greater than $250,000
|
|
Total
|
||||||||||||||||||||||||
Maturity Period
|
|
Amount
|
|
Weighted
Average Rate |
|
% of Total
Deposits |
|
Amount
|
|
Weighted
Average Rate |
|
% of Total
Deposits |
|
Amount
|
|
Weighted
Average Rate |
|
% of Total
Deposits |
||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Certificates of deposit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three months or less
|
|
$
|
128,637
|
|
|
1.67
|
%
|
|
1.45
|
%
|
|
$
|
379,867
|
|
|
1.74
|
%
|
|
4.27
|
%
|
|
$
|
508,504
|
|
|
1.72
|
%
|
|
5.71
|
%
|
Over three months through 6 months
|
|
113,682
|
|
|
1.84
|
|
|
1.28
|
|
|
67,725
|
|
|
2.06
|
|
|
0.76
|
|
|
181,407
|
|
|
1.92
|
|
|
2.04
|
|
|||
Over 6 months through 12 months
|
|
49,813
|
|
|
1.38
|
|
|
0.56
|
|
|
53,265
|
|
|
1.68
|
|
|
0.60
|
|
|
103,078
|
|
|
1.53
|
|
|
1.16
|
|
|||
Over 12 months
|
|
28,810
|
|
|
1.39
|
|
|
0.32
|
|
|
46,654
|
|
|
1.78
|
|
|
0.52
|
|
|
75,464
|
|
|
1.63
|
|
|
0.85
|
|
|||
Total
|
|
$
|
320,942
|
|
|
1.66
|
%
|
|
3.61
|
%
|
|
$
|
547,511
|
|
|
1.77
|
%
|
|
6.15
|
%
|
|
$
|
868,453
|
|
|
1.73
|
%
|
|
9.76
|
%
|
|
At or For Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(dollars in thousands)
|
||||||||||
FHLB Advances
|
|
|
|
|
|
||||||
Balance outstanding at end of year
|
$
|
517,026
|
|
|
$
|
667,606
|
|
|
$
|
490,148
|
|
Weighted average interest rate at end of year
|
1.69
|
%
|
|
2.51
|
%
|
|
1.49
|
%
|
|||
Average balance outstanding
|
$
|
404,959
|
|
|
$
|
529,278
|
|
|
$
|
290,839
|
|
Weighted average interest rate during the year
|
2.43
|
%
|
|
2.06
|
%
|
|
1.19
|
%
|
|||
Maximum amount outstanding at any month-end during the year
|
$
|
1,091,596
|
|
|
$
|
883,612
|
|
|
$
|
490,148
|
|
Other Borrowings
|
|
|
|
|
|
|
|
||||
Balance outstanding at end of year
|
$
|
—
|
|
|
$
|
75
|
|
|
$
|
46,139
|
|
Weighted average interest rate at end of year
|
—
|
%
|
|
0.01
|
%
|
|
2.02
|
%
|
|||
Average balance outstanding
|
$
|
230
|
|
|
$
|
29,193
|
|
|
$
|
50,866
|
|
Weighted average interest rate during the year
|
0.63
|
%
|
|
1.69
|
%
|
|
1.86
|
%
|
|||
Maximum amount outstanding at any month-end during the year
|
$
|
10,000
|
|
|
$
|
52,091
|
|
|
$
|
52,996
|
|
Subordinated Indentures
|
|
|
|
|
|
|
|
||||
Balance outstanding at end of year
|
$
|
215,145
|
|
|
$
|
110,313
|
|
|
$
|
105,123
|
|
Weighted average interest rate at end of year
|
5.37
|
%
|
|
6.04
|
%
|
|
5.60
|
%
|
|||
Average balance outstanding
|
$
|
183,382
|
|
|
$
|
107,732
|
|
|
$
|
81,466
|
|
Weighted average interest rate during the year
|
5.82
|
%
|
|
6.23
|
%
|
|
5.80
|
%
|
|||
Maximum amount outstanding at any month-end during the year
|
$
|
233,119
|
|
|
$
|
110,313
|
|
|
$
|
105,123
|
|
Total Borrowings
|
|
|
|
|
|
|
|
||||
Balance outstanding at end of year
|
$
|
732,171
|
|
|
$
|
777,994
|
|
|
$
|
641,410
|
|
Weighted average interest rate at end of year
|
2.77
|
%
|
|
3.01
|
%
|
|
2.21
|
%
|
|||
Average balance outstanding
|
$
|
588,571
|
|
|
$
|
666,250
|
|
|
$
|
423,248
|
|
Weighted average interest rate during the year
|
3.48
|
%
|
|
2.71
|
%
|
|
2.16
|
%
|
|||
Maximum amount outstanding at any month-end during the year
|
$
|
1,211,954
|
|
|
$
|
994,816
|
|
|
$
|
648,267
|
|
|
At December 31, 2019
|
||||||||||||||||||
|
Less than 1 year
|
|
1 - 3 years
|
|
3 - 5 years
|
|
More than 5 years
|
|
Total
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||
Contractual Obligations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
FHLB advances
|
$
|
496,000
|
|
|
$
|
21,026
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
517,026
|
|
Subordinated debentures
|
—
|
|
|
—
|
|
|
59,432
|
|
|
155,713
|
|
|
215,145
|
|
|||||
Certificates of deposit
|
949,790
|
|
|
87,799
|
|
|
9,644
|
|
|
609
|
|
|
1,047,842
|
|
|||||
Operating leases
|
10,281
|
|
|
29,801
|
|
|
13,491
|
|
|
1,092
|
|
|
54,665
|
|
|||||
Total contractual cash obligations
|
$
|
1,456,071
|
|
|
$
|
138,626
|
|
|
$
|
82,567
|
|
|
$
|
157,414
|
|
|
$
|
1,834,678
|
|
|
At December 31, 2019
|
||||||||||||||||||
|
Less than 1 year
|
|
1 - 3 years
|
|
3 - 5 years
|
|
More than 5 years
|
|
Total
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||
Other Unused Commitments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
810,886
|
|
|
$
|
208,959
|
|
|
$
|
34,064
|
|
|
$
|
48,412
|
|
|
$
|
1,102,321
|
|
Construction
|
127,760
|
|
|
109,864
|
|
|
—
|
|
|
10,003
|
|
|
247,627
|
|
|||||
Agribusiness and farmland
|
40,062
|
|
|
9,260
|
|
|
—
|
|
|
3,479
|
|
|
52,801
|
|
|||||
Home equity lines of credit
|
6,648
|
|
|
4,559
|
|
|
9,467
|
|
|
53,811
|
|
|
74,485
|
|
|||||
Standby letters of credit
|
11,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,788
|
|
|||||
All other
|
28,913
|
|
|
22,217
|
|
|
11,980
|
|
|
27,560
|
|
|
90,670
|
|
|||||
Total commitments
|
$
|
1,026,057
|
|
|
$
|
354,859
|
|
|
$
|
55,511
|
|
|
$
|
143,265
|
|
|
$
|
1,579,692
|
|
December 31, 2019
|
||||||||||||||
(dollars in thousands)
|
||||||||||||||
|
|
Earnings at Risk
|
|
Projected Net Interest Margin
|
||||||||||
Change in Rates (Basis Points)
|
|
$ Amount
|
|
$ Change
|
|
% Change
|
|
Rate %
|
|
% Change
|
||||
200
|
|
457,284
|
|
|
2,271
|
|
|
0.5
|
|
|
4.33
|
|
0.5
|
|
100
|
|
456,115
|
|
|
1,101
|
|
|
0.2
|
|
|
4.32
|
|
0.2
|
|
Static
|
|
455,013
|
|
|
—
|
|
|
—
|
|
|
4.31
|
|
—
|
|
-100
|
|
452,307
|
|
|
(2,706
|
)
|
|
(0.6
|
)
|
|
4.29
|
|
(0.6
|
)
|
-200
|
|
444,418
|
|
|
(10,595
|
)
|
|
(2.3
|
)
|
|
4.21
|
|
(2.3
|
)
|
December 31, 2019
|
||||||||||||||
(dollars in thousands)
|
||||||||||||||
|
|
Economic Value of Equity
|
|
EVE as % of market value of portfolio assets
|
||||||||||
Change in Rates (Basis Points)
|
|
$ Amount
|
|
$ Change
|
|
% Change
|
|
EVE Ratio
|
|
% Change
|
||||
200
|
|
2,084,891
|
|
|
106,053
|
|
|
5.4
|
|
|
19.77
|
|
1.9
|
|
100
|
|
2,042,116
|
|
|
63,277
|
|
|
3.2
|
|
|
18.91
|
|
1.0
|
|
Static
|
|
1,978,839
|
|
|
—
|
|
|
—
|
|
|
17.90
|
|
—
|
|
-100
|
|
1,884,247
|
|
|
(94,591
|
)
|
|
(4.8
|
)
|
|
16.63
|
|
(1.3
|
)
|
-200
|
|
1,728,146
|
|
|
(250,693
|
)
|
|
(12.7
|
)
|
|
14.86
|
|
(3.0
|
)
|
|
Page
|
•
|
the assignment of risk grades to loans based upon their underlying characteristics,
|
•
|
the determination of the loss emergence period for each segment,
|
•
|
the use of data from peer institutions to supplement their historical loss experience, and
|
•
|
the qualitative analysis of adjustments for current portfolio trends, economic conditions, and other relevant internal and external factors.
|
•
|
Testing the design and operating effectiveness of controls over the estimate of the probable incurred losses inherent in the remainder of the loan portfolio, including controls addressing:
|
◦
|
Assignment of risk grades to loans within the portfolio.
|
◦
|
Completeness and accuracy of the data used as the basis for the historical loss rate calculation.
|
◦
|
Mathematical accuracy of the model used to calculate the historical loss rates and resulting allowance for loan losses.
|
◦
|
Management’s judgments over the appropriateness of the loss emergence periods applied to each segment and the use of data from peer institutions in their loss rate calculations, as needed.
|
◦
|
Management’s judgments over the adequacy of the internal and external factors used to adjust the historical loss factors.
|
•
|
Substantively testing management’s process, including evaluating their judgments and assumptions, for developing the estimate of the probable incurred losses in the remainder of the loan portfolio which included:
|
◦
|
Testing the appropriateness and consistency of management’s judgments related to the assignment of risk grades to loans within the portfolio.
|
◦
|
Testing the completeness and accuracy of data used as the basis for the loss rate calculation.
|
◦
|
Testing the mathematical accuracy of the model used to calculate the adjusted loss rates and resulting allowance for loan losses.
|
◦
|
Testing the reasonableness of management’s judgments over the appropriateness of the loss emergence periods applied to each segment and the use of data from peer institutions in the loss rate calculations, as needed.
|
◦
|
Testing the reasonableness of management’s judgments over the adequacy of the internal and external factors used to adjust to the historical loss factors and whether such adjustments were applied consistently period over period.
|
◦
|
Analytically evaluating the estimate of probable incurred losses based on the trends within the loan portfolio year over year for reasonableness.
|
•
|
Commercial and industrial (including Franchise) - C&I loans are secured by business assets including inventory, receivables and machinery and equipment to businesses located generally in our primary market area. Loan types includes revolving lines or credit, term loans, seasonal loans and loans secured by liquid collateral such as cash deposits or marketable securities. HOA credit facilities are included in C&I loans. We also issue letters of credit on behalf of our customers. Risk arises primarily due to the difference between expected and actual cash flows of the borrowers. In addition, the recoverability of the Company’s investment in these loans is also dependent on other factors primarily dictated by the type of collateral securing these loans. The fair value of the collateral securing these loans may fluctuate as market conditions change. In the case of loans secured by accounts receivable, the recovery of the Company’s investment is dependent upon the borrower’s ability to collect amounts due from its customers.
|
•
|
Commercial real estate (including owner occupied and non-owner occupied) - CRE loans include various type of loans which the Company holds real property as collateral. CRE lending activity is typically restricted to owner occupied or non-owner occupied. The primary risks of real estate loans include the borrower’s inability to pay, material decreases in the value of the real estate that is being held as collateral and significant increases in interest rates, which may make the real estate loan unprofitable to the borrower. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy.
|
•
|
SBA - We are approved to originate loans under the SBA’s Preferred Lenders Program (“PLP”). The PLP lending status affords us a higher level of delegated credit autonomy, translating to a significantly shorter turnaround time from application to funding, which is critical to our marketing efforts. We originate loans nationwide under the SBA’s 7(a), SBAExpress, International Trade and 504(a) loan programs, in conformity with SBA underwriting and documentation standards. SBA loans are similar to commercial business loans, but have additional credit enhancement provided by the U.S. Small Business Administration, for up to 85.00% of the loan amount for loans up to $150,000 and 75.00% of the loan amount for loans of more than $150,000. The Company originates SBA loans with the intent to sell the guaranteed portion into the secondary market on a quarterly basis.
|
•
|
Agribusiness and farmland - We originate loans to the agricultural community to fund seasonal production and longer term investments in land, buildings, equipment, and livestock. Agribusiness loans are for the purpose of financing agricultural production to finance crops and livestock. Farmland loans include all land known to be used or usable for agricultural purposes, such as crop and livestock production and is secured by the land and improvements thereon.
|
•
|
Multi-family - Loans secured by multi-family and commercial real estate properties generally involve a greater degree of credit risk than one-to-four family loans. Because payments on loans secured by multi-family and commercial real estate properties are often dependent on the successful operation or management of the properties, repayment of these loans may be subject to adverse conditions in the real estate market or the economy.
|
•
|
One-to-four family - Although we do not originate, through our bank acquisitions, we have acquired first lien single family loans. The primary risks of one-to-four family loans include the borrower’s inability to pay, material decreases in the value of the real estate that is being held as collateral and significant increases in interest rates, which may make loans unprofitable.
|
•
|
Construction and land - We originate loans for the construction of one-to-four family and multi-family residences and CRE properties in our primary market area. We concentrate our efforts on single homes and small infill projects in established neighborhoods where there is not abundant land available for development. Construction loans are considered to have higher risks due to construction completion and timing risk, and the ultimate repayment being sensitive to interest rate changes, government regulation of real property and the availability of long-term financing. Additionally, economic conditions may impact the Company’s ability to recover its investment in construction loans, as adverse economic conditions may negatively impact the real estate market, which could affect the borrower’s ability to complete and sell the project. Additionally, the fair value of the underlying collateral may fluctuate as market conditions change. We occasionally originate land loans located predominantly in California for the purpose of facilitating the ultimate construction of a home or commercial building. The primary risks include the borrower’s inability to pay and the inability of the Company to recover its investment due to a decline in the fair value of the underlying collateral.
|
•
|
Consumer loans - In addition to consumer loans acquired through our various bank acquisitions, we originate a limited number of consumer loans, generally for banking customers only, which consist primarily of home equity lines of credit, savings account secured loans and auto loans. Repayment of these loans is dependent on the borrower’s ability to pay and the fair value of the underlying collateral.
|
•
|
The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy
|
•
|
The policy for timing of transfers between levels
|
•
|
The valuation processes for Level 3 fair value measurements
|
•
|
The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period
|
•
|
The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements
|
|
|
December 31, 2019
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross Unrealized
Gain
|
|
Gross Unrealized
Loss
|
|
Estimated
Fair Value
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. Treasury
|
|
$
|
60,457
|
|
|
$
|
3,137
|
|
|
$
|
(39
|
)
|
|
$
|
63,555
|
|
Agency
|
|
240,348
|
|
|
7,686
|
|
|
(1,676
|
)
|
|
246,358
|
|
||||
Corporate debt
|
|
149,150
|
|
|
2,217
|
|
|
(14
|
)
|
|
151,353
|
|
||||
Municipal bonds
|
|
384,032
|
|
|
13,450
|
|
|
(184
|
)
|
|
397,298
|
|
||||
Collateralized mortgage obligation: residential
|
|
9,869
|
|
|
123
|
|
|
(8
|
)
|
|
9,984
|
|
||||
Mortgage-backed securities: residential
|
|
494,404
|
|
|
7,603
|
|
|
(2,171
|
)
|
|
499,836
|
|
||||
Total investment securities available-for-sale
|
|
1,338,260
|
|
|
34,216
|
|
|
(4,092
|
)
|
|
1,368,384
|
|
||||
Investment securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities: residential
|
|
36,114
|
|
|
922
|
|
|
—
|
|
|
37,036
|
|
||||
Other
|
|
1,724
|
|
|
—
|
|
|
—
|
|
|
1,724
|
|
||||
Total investment securities held-to-maturity
|
|
37,838
|
|
|
922
|
|
|
—
|
|
|
38,760
|
|
||||
Total investment securities
|
|
$
|
1,376,098
|
|
|
$
|
35,138
|
|
|
$
|
(4,092
|
)
|
|
$
|
1,407,144
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross Unrealized
Gain
|
|
Gross Unrealized
Loss
|
|
Estimated
Fair Value
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
|
$
|
59,688
|
|
|
$
|
1,224
|
|
|
$
|
—
|
|
|
$
|
60,912
|
|
Agency
|
|
128,958
|
|
|
1,631
|
|
|
(519
|
)
|
|
130,070
|
|
||||
Corporate debt
|
|
104,158
|
|
|
291
|
|
|
(906
|
)
|
|
103,543
|
|
||||
Municipal bonds
|
|
238,914
|
|
|
1,941
|
|
|
(2,225
|
)
|
|
238,630
|
|
||||
Collateralized mortgage obligation: residential
|
|
24,699
|
|
|
64
|
|
|
(425
|
)
|
|
24,338
|
|
||||
Mortgage-backed securities: residential
|
|
554,751
|
|
|
1,112
|
|
|
(10,134
|
)
|
|
545,729
|
|
||||
Total investment securities available-for-sale
|
|
1,111,168
|
|
|
6,263
|
|
|
(14,209
|
)
|
|
1,103,222
|
|
||||
Investment securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities: residential
|
|
43,381
|
|
|
148
|
|
|
(686
|
)
|
|
42,843
|
|
||||
Other
|
|
1,829
|
|
|
—
|
|
|
—
|
|
|
1,829
|
|
||||
Total investment securities held-to-maturity
|
|
45,210
|
|
|
148
|
|
|
(686
|
)
|
|
44,672
|
|
||||
Total investment securities
|
|
$
|
1,156,378
|
|
|
$
|
6,411
|
|
|
$
|
(14,895
|
)
|
|
$
|
1,147,894
|
|
|
December 31, 2019
|
|||||||||||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or Longer
|
|
Total
|
|||||||||||||||||||||||||||
|
Number
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Number
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Number
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|||||||||||||||
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury
|
1
|
|
|
$
|
10,194
|
|
|
$
|
(39
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
10,194
|
|
|
$
|
(39
|
)
|
Agency
|
13
|
|
|
102,874
|
|
|
(1,340
|
)
|
|
9
|
|
|
13,514
|
|
|
(336
|
)
|
|
22
|
|
|
116,388
|
|
|
(1,676
|
)
|
||||||
Corporate debt
|
1
|
|
|
1,017
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1,017
|
|
|
(14
|
)
|
||||||
Municipal bonds
|
12
|
|
|
30,541
|
|
|
(184
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
30,541
|
|
|
(184
|
)
|
||||||
Collateralized mortgage obligation: residential
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
603
|
|
|
(8
|
)
|
|
1
|
|
|
603
|
|
|
(8
|
)
|
||||||
Mortgage-backed securities: residential
|
18
|
|
|
130,014
|
|
|
(1,681
|
)
|
|
11
|
|
|
26,886
|
|
|
(490
|
)
|
|
29
|
|
|
156,900
|
|
|
(2,171
|
)
|
||||||
Total investment securities available-for-sale
|
45
|
|
|
274,640
|
|
|
(3,258
|
)
|
|
21
|
|
|
41,003
|
|
|
(834
|
)
|
|
66
|
|
|
315,643
|
|
|
(4,092
|
)
|
||||||
Investment securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities: residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total investment securities held-to-maturity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total investment securities
|
45
|
|
|
$
|
274,640
|
|
|
$
|
(3,258
|
)
|
|
21
|
|
|
$
|
41,003
|
|
|
$
|
(834
|
)
|
|
66
|
|
|
$
|
315,643
|
|
|
$
|
(4,092
|
)
|
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or Longer
|
|
Total
|
|||||||||||||||||||||||||||
|
Number
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Number
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Number
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|||||||||||||||
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Agency
|
15
|
|
|
$
|
26,229
|
|
|
$
|
(333
|
)
|
|
6
|
|
|
$
|
10,434
|
|
|
$
|
(186
|
)
|
|
21
|
|
|
$
|
36,663
|
|
|
$
|
(519
|
)
|
Corporate debt
|
9
|
|
|
47,805
|
|
|
(471
|
)
|
|
8
|
|
|
19,369
|
|
|
(435
|
)
|
|
17
|
|
|
67,174
|
|
|
(906
|
)
|
||||||
Municipal bonds
|
60
|
|
|
45,083
|
|
|
(369
|
)
|
|
102
|
|
|
69,693
|
|
|
(1,856
|
)
|
|
162
|
|
|
114,776
|
|
|
(2,225
|
)
|
||||||
Collateralized mortgage obligation: residential
|
1
|
|
|
814
|
|
|
(1
|
)
|
|
8
|
|
|
18,104
|
|
|
(424
|
)
|
|
9
|
|
|
18,918
|
|
|
(425
|
)
|
||||||
Mortgage-backed securities: residential
|
20
|
|
|
70,839
|
|
|
(435
|
)
|
|
120
|
|
|
324,864
|
|
|
(9,699
|
)
|
|
140
|
|
|
395,703
|
|
|
(10,134
|
)
|
||||||
Total available-for-sale
|
105
|
|
|
190,770
|
|
|
(1,609
|
)
|
|
244
|
|
|
442,464
|
|
|
(12,600
|
)
|
|
349
|
|
|
633,234
|
|
|
(14,209
|
)
|
||||||
Investment securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities: residential
|
3
|
|
|
11,256
|
|
|
(81
|
)
|
|
3
|
|
|
15,741
|
|
|
(605
|
)
|
|
6
|
|
|
26,997
|
|
|
(686
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total held-to-maturity
|
3
|
|
|
11,256
|
|
|
(81
|
)
|
|
3
|
|
|
15,741
|
|
|
(605
|
)
|
|
6
|
|
|
26,997
|
|
|
(686
|
)
|
||||||
Total securities
|
108
|
|
|
$
|
202,026
|
|
|
$
|
(1,690
|
)
|
|
247
|
|
|
$
|
458,205
|
|
|
$
|
(13,205
|
)
|
|
355
|
|
|
$
|
660,231
|
|
|
$
|
(14,895
|
)
|
|
|
Due in One Year
or Less |
|
Due after One Year
through Five Years |
|
Due after Five Years
through Ten Years |
|
Due after
Ten Years |
|
Total
|
||||||||||||||||||||||||||||||
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Treasury
|
|
$
|
499
|
|
|
$
|
500
|
|
|
$
|
20,163
|
|
|
$
|
20,586
|
|
|
$
|
39,795
|
|
|
$
|
42,469
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60,457
|
|
|
$
|
63,555
|
|
Agency
|
|
1,000
|
|
|
1,014
|
|
|
40,647
|
|
|
42,162
|
|
|
166,244
|
|
|
169,070
|
|
|
32,457
|
|
|
34,112
|
|
|
240,348
|
|
|
246,358
|
|
||||||||||
Corporate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
135,407
|
|
|
137,518
|
|
|
13,743
|
|
|
13,835
|
|
|
149,150
|
|
|
151,353
|
|
||||||||||
Municipal bonds
|
|
—
|
|
|
—
|
|
|
1,842
|
|
|
1,952
|
|
|
26,024
|
|
|
26,996
|
|
|
356,166
|
|
|
368,350
|
|
|
384,032
|
|
|
397,298
|
|
||||||||||
Collateralized mortgage obligation: residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
610
|
|
|
603
|
|
|
9,259
|
|
|
9,381
|
|
|
9,869
|
|
|
9,984
|
|
||||||||||
Mortgage-backed securities: residential
|
|
—
|
|
|
—
|
|
|
2,258
|
|
|
2,352
|
|
|
193,771
|
|
|
195,933
|
|
|
298,375
|
|
|
301,551
|
|
|
494,404
|
|
|
499,836
|
|
||||||||||
Total investment securities available-for-sale
|
|
1,499
|
|
|
1,514
|
|
|
64,910
|
|
|
67,052
|
|
|
561,851
|
|
|
572,589
|
|
|
710,000
|
|
|
727,229
|
|
|
1,338,260
|
|
|
1,368,384
|
|
||||||||||
Investment securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities: residential
|
|
—
|
|
|
—
|
|
|
908
|
|
|
942
|
|
|
—
|
|
|
—
|
|
|
35,206
|
|
|
36,094
|
|
|
36,114
|
|
|
37,036
|
|
||||||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,724
|
|
|
1,724
|
|
|
1,724
|
|
|
1,724
|
|
||||||||||
Total investment securities held-to-maturity
|
|
—
|
|
|
—
|
|
|
908
|
|
|
942
|
|
|
—
|
|
|
—
|
|
|
36,930
|
|
|
37,818
|
|
|
37,838
|
|
|
38,760
|
|
||||||||||
Total investment securities
|
|
$
|
1,499
|
|
|
$
|
1,514
|
|
|
$
|
65,818
|
|
|
$
|
67,994
|
|
|
$
|
561,851
|
|
|
$
|
572,589
|
|
|
$
|
746,930
|
|
|
$
|
765,047
|
|
|
$
|
1,376,098
|
|
|
$
|
1,407,144
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Business loans:
|
|
|
|
||||
Commercial and industrial
|
$
|
1,265,185
|
|
|
$
|
1,364,423
|
|
Franchise
|
916,875
|
|
|
765,416
|
|
||
Commercial owner occupied (1)
|
1,674,092
|
|
|
1,679,122
|
|
||
SBA
|
175,815
|
|
|
193,882
|
|
||
Agribusiness
|
127,834
|
|
|
138,519
|
|
||
Total business loans
|
4,159,801
|
|
|
4,141,362
|
|
||
Real estate loans:
|
|
|
|
|
|
||
Commercial non-owner occupied
|
2,072,374
|
|
|
2,003,174
|
|
||
Multi-family
|
1,576,870
|
|
|
1,535,289
|
|
||
One-to-four family (2)
|
254,779
|
|
|
356,264
|
|
||
Construction
|
410,065
|
|
|
523,643
|
|
||
Farmland
|
175,997
|
|
|
150,502
|
|
||
Land
|
31,090
|
|
|
46,628
|
|
||
Total real estate loans
|
4,521,175
|
|
|
4,615,500
|
|
||
Consumer loans:
|
|
|
|
||||
Consumer loans
|
50,922
|
|
|
89,424
|
|
||
Gross loans held for investment (3)
|
8,731,898
|
|
|
8,846,286
|
|
||
Deferred loan origination fees and discounts, net
|
(9,587
|
)
|
|
(9,468
|
)
|
||
Loans held for investment
|
8,722,311
|
|
|
8,836,818
|
|
||
Allowance for loan losses
|
(35,698
|
)
|
|
(36,072
|
)
|
||
Loans held for investment, net
|
$
|
8,686,613
|
|
|
$
|
8,800,746
|
|
|
|
|
|
||||
Loans held for sale, at lower of cost or fair value
|
$
|
1,672
|
|
|
$
|
5,719
|
|
•
|
Pass classifications represent assets with an acceptable level of credit quality that contains no well-defined deficiencies or weaknesses.
|
•
|
Special Mention assets do not currently expose the Bank to a sufficient risk to warrant classification in one of the adverse categories, but possess correctable deficiencies or potential weaknesses deserving management’s close attention.
|
•
|
Substandard assets are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. These assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
|
•
|
Doubtful credits have all the weaknesses inherent in substandard credits, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
|
•
|
Loss assets are those that are considered uncollectible and of such little value that their continuance as assets is not warranted. Amounts classified as loss are promptly charged off.
|
|
|
Credit Risk Grades
|
||||||||||||||||||
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total Gross
Loans
|
||||||||||
December 31, 2019
|
|
(dollars in thousands)
|
||||||||||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
1,236,073
|
|
|
$
|
13,226
|
|
|
$
|
15,886
|
|
|
$
|
—
|
|
|
$
|
1,265,185
|
|
Franchise
|
|
898,191
|
|
|
7,851
|
|
|
10,833
|
|
|
—
|
|
|
916,875
|
|
|||||
Commercial owner occupied
|
|
1,659,391
|
|
|
11,167
|
|
|
3,534
|
|
|
—
|
|
|
1,674,092
|
|
|||||
SBA
|
|
166,011
|
|
|
3,255
|
|
|
8,221
|
|
|
—
|
|
|
177,487
|
|
|||||
Agribusiness
|
|
123,338
|
|
|
—
|
|
|
4,496
|
|
|
—
|
|
|
127,834
|
|
|||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial non-owner occupied
|
|
2,070,068
|
|
|
1,178
|
|
|
1,128
|
|
|
—
|
|
|
2,072,374
|
|
|||||
Multi-family
|
|
1,576,654
|
|
|
—
|
|
|
216
|
|
|
—
|
|
|
1,576,870
|
|
|||||
One-to-four family
|
|
254,218
|
|
|
—
|
|
|
561
|
|
|
—
|
|
|
254,779
|
|
|||||
Construction
|
|
410,065
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
410,065
|
|
|||||
Farmland
|
|
175,997
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175,997
|
|
|||||
Land
|
|
31,073
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
31,090
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
50,868
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
50,922
|
|
|||||
Totals
|
|
$
|
8,651,947
|
|
|
$
|
36,677
|
|
|
$
|
44,946
|
|
|
$
|
—
|
|
|
$
|
8,733,570
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Credit Risk Grades
|
||||||||||||||||||
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total Gross
Loans
|
||||||||||
December 31, 2018
|
|
(dollars in thousands)
|
||||||||||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
1,340,322
|
|
|
$
|
12,005
|
|
|
$
|
12,134
|
|
|
$
|
—
|
|
|
$
|
1,364,461
|
|
Franchise
|
|
760,795
|
|
|
4,431
|
|
|
190
|
|
|
—
|
|
|
765,416
|
|
|||||
Commercial owner occupied
|
|
1,660,994
|
|
|
1,580
|
|
|
16,548
|
|
|
—
|
|
|
1,679,122
|
|
|||||
SBA
|
|
189,006
|
|
|
2,289
|
|
|
6,906
|
|
|
—
|
|
|
198,201
|
|
|||||
Warehouse facilities
|
|
125,355
|
|
|
—
|
|
|
13,164
|
|
|
—
|
|
|
138,519
|
|
|||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial non-owner occupied
|
|
1,998,118
|
|
|
731
|
|
|
5,687
|
|
|
—
|
|
|
2,004,536
|
|
|||||
Multi-family
|
|
1,530,567
|
|
|
4,060
|
|
|
662
|
|
|
—
|
|
|
1,535,289
|
|
|||||
One-to-four family
|
|
350,083
|
|
|
728
|
|
|
5,453
|
|
|
—
|
|
|
356,264
|
|
|||||
Construction
|
|
523,643
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
523,643
|
|
|||||
Farmland
|
|
150,381
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
150,502
|
|
|||||
Land
|
|
46,008
|
|
|
132
|
|
|
488
|
|
|
—
|
|
|
46,628
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
89,321
|
|
|
—
|
|
|
103
|
|
|
—
|
|
|
89,424
|
|
|||||
Totals
|
|
$
|
8,764,593
|
|
|
$
|
25,956
|
|
|
$
|
61,456
|
|
|
$
|
—
|
|
|
$
|
8,852,005
|
|
|
|
|
|
Days Past Due
|
|
|
|
|
||||||||||||||||
|
|
Current
|
|
30-59
|
|
60-89
|
|
90+
|
|
Total Gross Loans
|
|
Non-accruing
|
||||||||||||
December 31, 2019
|
|
(dollars in thousands)
|
||||||||||||||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
|
$
|
1,260,940
|
|
|
$
|
422
|
|
|
$
|
826
|
|
|
$
|
2,997
|
|
|
$
|
1,265,185
|
|
|
$
|
4,637
|
|
Franchise
|
|
907,733
|
|
|
—
|
|
|
9,142
|
|
|
—
|
|
|
916,875
|
|
|
—
|
|
||||||
Commercial owner occupied
|
|
1,673,761
|
|
|
331
|
|
|
—
|
|
|
—
|
|
|
1,674,092
|
|
|
—
|
|
||||||
SBA
|
|
174,271
|
|
|
169
|
|
|
613
|
|
|
2,434
|
|
|
177,487
|
|
|
2,519
|
|
||||||
Agribusiness
|
|
127,834
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127,834
|
|
|
—
|
|
||||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial non-owner occupied
|
|
2,070,067
|
|
|
1,179
|
|
|
—
|
|
|
1,128
|
|
|
2,072,374
|
|
|
1,128
|
|
||||||
Multi-family
|
|
1,576,870
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,576,870
|
|
|
—
|
|
||||||
One-to-four family
|
|
254,779
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
254,779
|
|
|
366
|
|
||||||
Construction
|
|
410,065
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
410,065
|
|
|
—
|
|
||||||
Farmland
|
|
175,997
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175,997
|
|
|
—
|
|
||||||
Land
|
|
31,090
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,090
|
|
|
—
|
|
||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
50,914
|
|
|
5
|
|
|
2
|
|
|
1
|
|
|
50,922
|
|
|
—
|
|
||||||
Totals
|
|
$
|
8,714,321
|
|
|
$
|
2,106
|
|
|
$
|
10,583
|
|
|
$
|
6,560
|
|
|
$
|
8,733,570
|
|
|
$
|
8,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
Days Past Due
|
|
|
|
|
|
|
|||||||||||||
|
|
Current
|
|
30-59
|
|
60-89
|
|
90+
|
|
Total Gross Loans
|
|
Non-accruing
|
||||||||||||
December 31, 2018
|
|
(dollars in thousands)
|
||||||||||||||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
|
$
|
1,362,017
|
|
|
$
|
309
|
|
|
$
|
1,204
|
|
|
$
|
931
|
|
|
$
|
1,364,461
|
|
|
$
|
931
|
|
Franchise
|
|
759,546
|
|
|
5,680
|
|
|
—
|
|
|
190
|
|
|
765,416
|
|
|
190
|
|
||||||
Commercial owner occupied
|
|
1,677,967
|
|
|
343
|
|
|
—
|
|
|
812
|
|
|
1,679,122
|
|
|
599
|
|
||||||
SBA
|
|
195,051
|
|
|
524
|
|
|
—
|
|
|
2,626
|
|
|
198,201
|
|
|
2,739
|
|
||||||
Warehouse facilities
|
|
138,519
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
138,519
|
|
|
—
|
|
||||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial non-owner occupied
|
|
2,004,536
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,004,536
|
|
|
—
|
|
||||||
Multi-family
|
|
1,535,275
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
1,535,289
|
|
|
—
|
|
||||||
One-to-four family
|
|
356,219
|
|
|
30
|
|
|
9
|
|
|
6
|
|
|
356,264
|
|
|
398
|
|
||||||
Construction
|
|
523,643
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
523,643
|
|
|
—
|
|
||||||
Farmland
|
|
150,502
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150,502
|
|
|
—
|
|
||||||
Land
|
|
46,628
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,628
|
|
|
—
|
|
||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
89,249
|
|
|
146
|
|
|
29
|
|
|
—
|
|
|
89,424
|
|
|
—
|
|
||||||
Totals
|
|
$
|
8,839,152
|
|
|
$
|
7,046
|
|
|
$
|
1,242
|
|
|
$
|
4,565
|
|
|
$
|
8,852,005
|
|
|
$
|
4,857
|
|
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
With Specific Allowance
|
|
Without Specific Allowance
|
|
Specific Allowance for Impaired Loans
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
7,529
|
|
|
$
|
7,755
|
|
|
$
|
—
|
|
|
$
|
7,529
|
|
|
$
|
—
|
|
|
$
|
3,649
|
|
|
$
|
22
|
|
Franchise
|
|
10,834
|
|
|
10,835
|
|
|
—
|
|
|
10,834
|
|
|
—
|
|
|
3,079
|
|
|
151
|
|
|||||||
Commercial owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
683
|
|
|
—
|
|
|||||||
SBA
|
|
3,132
|
|
|
4,070
|
|
|
—
|
|
|
3,132
|
|
|
—
|
|
|
2,996
|
|
|
16
|
|
|||||||
Agribusiness
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,602
|
|
|
363
|
|
|||||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial non-owner occupied
|
|
1,128
|
|
|
1,184
|
|
|
—
|
|
|
1,128
|
|
|
—
|
|
|
411
|
|
|
—
|
|
|||||||
One-to-four family
|
|
366
|
|
|
412
|
|
|
—
|
|
|
366
|
|
|
—
|
|
|
379
|
|
|
—
|
|
|||||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
|||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|||||||
Totals
|
|
$
|
22,989
|
|
|
$
|
24,256
|
|
|
$
|
—
|
|
|
$
|
22,989
|
|
|
$
|
—
|
|
|
$
|
17,938
|
|
|
$
|
552
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
|
$
|
1,023
|
|
|
$
|
1,071
|
|
|
$
|
550
|
|
|
$
|
473
|
|
|
$
|
118
|
|
|
$
|
1,173
|
|
|
$
|
1
|
|
Franchise
|
|
189
|
|
|
190
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|||||||
Commercial owner occupied
|
|
599
|
|
|
628
|
|
|
—
|
|
|
599
|
|
|
—
|
|
|
1,549
|
|
|
—
|
|
|||||||
SBA
|
|
2,739
|
|
|
7,598
|
|
|
488
|
|
|
2,251
|
|
|
466
|
|
|
1,814
|
|
|
—
|
|
|||||||
Agribusiness
|
|
7,500
|
|
|
7,500
|
|
|
—
|
|
|
7,500
|
|
|
—
|
|
|
625
|
|
|
35
|
|
|||||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
538
|
|
|
—
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|
—
|
|
|||||||
One-to-four family
|
|
408
|
|
|
453
|
|
|
—
|
|
|
408
|
|
|
—
|
|
|
1,206
|
|
|
—
|
|
|||||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|||||||
Totals
|
|
$
|
12,458
|
|
|
$
|
17,440
|
|
|
$
|
1,038
|
|
|
$
|
11,420
|
|
|
$
|
584
|
|
|
$
|
7,562
|
|
|
$
|
36
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
|
$
|
1,160
|
|
|
$
|
1,585
|
|
|
$
|
—
|
|
|
$
|
1,160
|
|
|
$
|
—
|
|
|
$
|
441
|
|
|
$
|
—
|
|
Commercial owner occupied
|
|
97
|
|
|
98
|
|
|
97
|
|
|
—
|
|
|
55
|
|
|
153
|
|
|
—
|
|
|||||||
SBA
|
|
1,201
|
|
|
4,329
|
|
|
—
|
|
|
1,201
|
|
|
—
|
|
|
434
|
|
|
—
|
|
|||||||
Real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|||||||
One-to-four family
|
|
817
|
|
|
849
|
|
|
—
|
|
|
817
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,017
|
|
|
—
|
|
|||||||
Land
|
|
9
|
|
|
35
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|||||||
Totals
|
|
$
|
3,284
|
|
|
$
|
6,896
|
|
|
$
|
97
|
|
|
$
|
3,187
|
|
|
$
|
55
|
|
|
$
|
2,309
|
|
|
$
|
—
|
|
•
|
Changes in lending policies and procedures, including underwriting standards and collection, charge-offs and recovery practices;
|
•
|
Changes in the nature and volume of the loan portfolio, including new types of lending;
|
•
|
Changes in the experience, ability, and depth of lending management and other relevant staff that may have an impact on our loan portfolio;
|
•
|
Changes in the volume and severity of adversely classified or graded loans;
|
•
|
Changes in the quality of our loan review system and the management oversight;
|
•
|
The existence and effect of any concentrations of credit and changes in the level of such concentrations;
|
•
|
Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment;
|
•
|
Changes in the value of the underlying collateral for collateral-dependent loans; and
|
•
|
The effect of external factors, such as competition, legal developments and regulatory requirements on the level of estimated credit losses in our current loan portfolio
|
|
Commercial
and Industrial
|
|
Franchise
|
|
Commercial
Owner Occupied
|
|
SBA
|
|
Agribusiness
|
|
Commercial
Non-owner Occupied
|
|
Multi-family
|
|
One-to-four
Family
|
|
Construction
|
|
Farmland
|
|
Land
|
|
Consumer Loans
|
|
Total
|
||||||||||||||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018
|
$
|
10,821
|
|
|
$
|
6,500
|
|
|
$
|
1,386
|
|
|
$
|
4,288
|
|
|
$
|
3,283
|
|
|
$
|
1,604
|
|
|
$
|
725
|
|
|
$
|
805
|
|
|
$
|
5,166
|
|
|
$
|
503
|
|
|
$
|
772
|
|
|
$
|
219
|
|
|
$
|
36,072
|
|
Charge-offs
|
(2,318
|
)
|
|
(2,531
|
)
|
|
(125
|
)
|
|
(2,238
|
)
|
|
—
|
|
|
(625
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
(7,853
|
)
|
|||||||||||||
Recoveries
|
189
|
|
|
18
|
|
|
46
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
344
|
|
|||||||||||||
Provisions for (reduction in) loan losses
|
2,642
|
|
|
2,421
|
|
|
616
|
|
|
2,351
|
|
|
(760
|
)
|
|
920
|
|
|
4
|
|
|
(152
|
)
|
|
(1,357
|
)
|
|
355
|
|
|
(97
|
)
|
|
192
|
|
|
7,135
|
|
|||||||||||||
Balance, December 31, 2019
|
$
|
11,334
|
|
|
$
|
6,408
|
|
|
$
|
1,923
|
|
|
$
|
4,479
|
|
|
$
|
2,523
|
|
|
$
|
1,899
|
|
|
$
|
729
|
|
|
$
|
655
|
|
|
$
|
3,809
|
|
|
$
|
858
|
|
|
$
|
675
|
|
|
$
|
406
|
|
|
$
|
35,698
|
|
Amount of allowance attributed to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Specifically evaluated impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
General portfolio allocation
|
11,334
|
|
|
6,408
|
|
|
1,923
|
|
|
4,479
|
|
|
2,523
|
|
|
1,899
|
|
|
729
|
|
|
655
|
|
|
3,809
|
|
|
858
|
|
|
675
|
|
|
406
|
|
|
35,698
|
|
|||||||||||||
Loans individually evaluated for impairment
|
7,529
|
|
|
10,834
|
|
|
—
|
|
|
3,132
|
|
|
—
|
|
|
1,128
|
|
|
—
|
|
|
366
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,989
|
|
|||||||||||||
Specific reserves to total loans individually evaluated for impairment
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|||||||||||||
Loans collectively evaluated for impairment
|
$
|
1,257,656
|
|
|
$
|
906,041
|
|
|
$
|
1,674,092
|
|
|
$
|
172,683
|
|
|
$
|
127,834
|
|
|
$
|
2,071,246
|
|
|
$
|
1,576,870
|
|
|
$
|
254,413
|
|
|
$
|
410,065
|
|
|
$
|
175,997
|
|
|
$
|
31,090
|
|
|
$
|
50,922
|
|
|
$
|
8,708,909
|
|
General reserves to total loans collectively evaluated for impairment
|
0.90
|
%
|
|
0.71
|
%
|
|
0.11
|
%
|
|
2.59
|
%
|
|
1.97
|
%
|
|
0.09
|
%
|
|
0.05
|
%
|
|
0.26
|
%
|
|
0.93
|
%
|
|
0.49
|
%
|
|
2.17
|
%
|
|
0.80
|
%
|
|
0.41
|
%
|
|||||||||||||
Total gross loans
|
$
|
1,265,185
|
|
|
$
|
916,875
|
|
|
$
|
1,674,092
|
|
|
$
|
175,815
|
|
|
$
|
127,834
|
|
|
$
|
2,072,374
|
|
|
$
|
1,576,870
|
|
|
$
|
254,779
|
|
|
$
|
410,065
|
|
|
$
|
175,997
|
|
|
$
|
31,090
|
|
|
$
|
50,922
|
|
|
$
|
8,731,898
|
|
Total allowance to gross loans
|
0.90
|
%
|
|
0.70
|
%
|
|
0.11
|
%
|
|
2.55
|
%
|
|
1.97
|
%
|
|
0.09
|
%
|
|
0.05
|
%
|
|
0.26
|
%
|
|
0.93
|
%
|
|
0.49
|
%
|
|
2.17
|
%
|
|
0.80
|
%
|
|
0.41
|
%
|
|
Commercial
and Industrial
|
|
Franchise
|
|
Commercial
Owner Occupied
|
|
SBA
|
|
Agribusiness
|
|
Commercial
Non-owner Occupied
|
|
Multi-family
|
|
One-to-four
Family
|
|
Construction
|
|
Farmland
|
|
Land
|
|
Consumer Loans
|
|
Total
|
||||||||||||||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Balance, December 31, 2017
|
$
|
9,721
|
|
|
$
|
5,797
|
|
|
$
|
767
|
|
|
$
|
2,890
|
|
|
$
|
1,291
|
|
|
$
|
1,266
|
|
|
$
|
607
|
|
|
$
|
803
|
|
|
$
|
4,569
|
|
|
$
|
137
|
|
|
$
|
993
|
|
|
$
|
95
|
|
|
$
|
28,936
|
|
Charge-offs
|
(1,411
|
)
|
|
—
|
|
|
(33
|
)
|
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(409
|
)
|
|
(1,955
|
)
|
|||||||||||||
Recoveries
|
698
|
|
|
—
|
|
|
47
|
|
|
169
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
935
|
|
|||||||||||||
Provisions for (reduction in) loan losses
|
1,813
|
|
|
703
|
|
|
605
|
|
|
1,331
|
|
|
1,992
|
|
|
338
|
|
|
118
|
|
|
(11
|
)
|
|
597
|
|
|
366
|
|
|
(221
|
)
|
|
525
|
|
|
8,156
|
|
|||||||||||||
Balance, December 31, 2018
|
$
|
10,821
|
|
|
$
|
6,500
|
|
|
$
|
1,386
|
|
|
$
|
4,288
|
|
|
$
|
3,283
|
|
|
$
|
1,604
|
|
|
$
|
725
|
|
|
$
|
805
|
|
|
$
|
5,166
|
|
|
$
|
503
|
|
|
$
|
772
|
|
|
$
|
219
|
|
|
$
|
36,072
|
|
Amount of allowance attributed to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Specifically evaluated impaired loans
|
$
|
118
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
466
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
584
|
|
General portfolio allocation
|
10,703
|
|
|
6,500
|
|
|
1,386
|
|
|
3,822
|
|
|
3,283
|
|
|
1,604
|
|
|
725
|
|
|
805
|
|
|
5,166
|
|
|
503
|
|
|
772
|
|
|
219
|
|
|
35,488
|
|
|||||||||||||
Loans individually evaluated for impairment
|
1,023
|
|
|
189
|
|
|
599
|
|
|
2,739
|
|
|
7,500
|
|
|
—
|
|
|
—
|
|
|
408
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,458
|
|
|||||||||||||
Specific reserves to total loans individually evaluated for impairment
|
11.53
|
%
|
|
—
|
%
|
|
—
|
%
|
|
17.01
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
4.69
|
%
|
|||||||||||||
Loans collectively evaluated for impairment
|
$
|
1,363,400
|
|
|
$
|
765,227
|
|
|
$
|
1,678,523
|
|
|
$
|
191,143
|
|
|
$
|
131,019
|
|
|
$
|
2,003,174
|
|
|
$
|
1,535,289
|
|
|
$
|
355,856
|
|
|
$
|
523,643
|
|
|
$
|
150,502
|
|
|
$
|
46,628
|
|
|
$
|
89,424
|
|
|
$
|
8,833,828
|
|
General reserves to total loans collectively evaluated for impairment
|
0.79
|
%
|
|
0.85
|
%
|
|
0.08
|
%
|
|
2.00
|
%
|
|
2.51
|
%
|
|
0.08
|
%
|
|
0.05
|
%
|
|
0.23
|
%
|
|
0.99
|
%
|
|
0.33
|
%
|
|
1.66
|
%
|
|
0.24
|
%
|
|
0.40
|
%
|
|||||||||||||
Total gross loans
|
$
|
1,364,423
|
|
|
$
|
765,416
|
|
|
$
|
1,679,122
|
|
|
$
|
193,882
|
|
|
$
|
138,519
|
|
|
$
|
2,003,174
|
|
|
$
|
1,535,289
|
|
|
$
|
356,264
|
|
|
$
|
523,643
|
|
|
$
|
150,502
|
|
|
$
|
46,628
|
|
|
$
|
89,424
|
|
|
$
|
8,846,286
|
|
Total allowance to gross loans
|
0.79
|
%
|
|
0.85
|
%
|
|
0.08
|
%
|
|
2.21
|
%
|
|
2.37
|
%
|
|
0.08
|
%
|
|
0.05
|
%
|
|
0.23
|
%
|
|
0.99
|
%
|
|
0.33
|
%
|
|
1.66
|
%
|
|
0.24
|
%
|
|
0.41
|
%
|
|
Commercial
and Industrial |
|
Franchise
|
|
Commercial
Owner Occupied |
|
SBA
|
|
Agribusiness
|
|
Commercial
Non-owner Occupied |
|
Multi-family
|
|
One-to-four
Family |
|
Construction
|
|
Farmland
|
|
Land
|
|
Consumer Loans
|
|
Total
|
||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2016
|
$
|
6,362
|
|
|
$
|
3,845
|
|
|
$
|
1,193
|
|
|
$
|
1,039
|
|
|
$
|
—
|
|
|
$
|
1,715
|
|
|
$
|
2,927
|
|
|
$
|
365
|
|
|
$
|
3,632
|
|
|
$
|
—
|
|
|
$
|
198
|
|
|
$
|
20
|
|
|
$
|
21,296
|
|
Charge-offs
|
(1,344
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,362
|
)
|
|||||||||||||
Recoveries
|
94
|
|
|
—
|
|
|
105
|
|
|
127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
362
|
|
|||||||||||||
Provisions for (reduction in) loan losses
|
4,609
|
|
|
1,952
|
|
|
(531
|
)
|
|
1,732
|
|
|
1,291
|
|
|
(449
|
)
|
|
(2,320
|
)
|
|
413
|
|
|
937
|
|
|
137
|
|
|
795
|
|
|
74
|
|
|
8,640
|
|
|||||||||||||
Balance, December 31, 2017
|
$
|
9,721
|
|
|
$
|
5,797
|
|
|
$
|
767
|
|
|
$
|
2,890
|
|
|
$
|
1,291
|
|
|
$
|
1,266
|
|
|
$
|
607
|
|
|
$
|
803
|
|
|
$
|
4,569
|
|
|
$
|
137
|
|
|
$
|
993
|
|
|
$
|
95
|
|
|
$
|
28,936
|
|
Amount of allowance attributed to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Specifically evaluated impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55
|
|
General portfolio allocation
|
9,721
|
|
|
5,797
|
|
|
712
|
|
|
2,890
|
|
|
1,291
|
|
|
1,266
|
|
|
607
|
|
|
803
|
|
|
4,569
|
|
|
137
|
|
|
993
|
|
|
95
|
|
|
28,881
|
|
|||||||||||||
Loans individually evaluated for impairment
|
1,160
|
|
|
—
|
|
|
97
|
|
|
1,201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
817
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
3,284
|
|
|||||||||||||
Specific reserves to total loans individually evaluated for impairment
|
—
|
%
|
|
—
|
%
|
|
56.70
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.67
|
%
|
|||||||||||||
Loans collectively evaluated for impairment
|
$
|
1,085,499
|
|
|
$
|
660,414
|
|
|
$
|
1,289,116
|
|
|
$
|
184,313
|
|
|
$
|
116,066
|
|
|
$
|
1,243,115
|
|
|
$
|
794,384
|
|
|
$
|
270,077
|
|
|
$
|
282,811
|
|
|
$
|
145,393
|
|
|
$
|
31,224
|
|
|
$
|
92,931
|
|
|
$
|
6,195,343
|
|
General reserves to total loans collectively evaluated for impairment
|
0.90
|
%
|
|
0.88
|
%
|
|
0.06
|
%
|
|
1.57
|
%
|
|
1.11
|
%
|
|
0.10
|
%
|
|
0.08
|
%
|
|
0.30
|
%
|
|
1.62
|
%
|
|
0.09
|
%
|
|
3.18
|
%
|
|
0.10
|
%
|
|
0.47
|
%
|
|||||||||||||
Total gross loans
|
$
|
1,086,659
|
|
|
$
|
660,414
|
|
|
$
|
1,289,213
|
|
|
$
|
185,514
|
|
|
$
|
116,066
|
|
|
$
|
1,243,115
|
|
|
$
|
794,384
|
|
|
$
|
270,894
|
|
|
$
|
282,811
|
|
|
$
|
145,393
|
|
|
$
|
31,233
|
|
|
$
|
92,931
|
|
|
$
|
6,198,627
|
|
Total allowance to gross loans
|
0.89
|
%
|
|
0.88
|
%
|
|
0.06
|
%
|
|
1.56
|
%
|
|
1.11
|
%
|
|
0.10
|
%
|
|
0.08
|
%
|
|
0.30
|
%
|
|
1.62
|
%
|
|
0.09
|
%
|
|
3.18
|
%
|
|
0.10
|
%
|
|
0.47
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(dollars in thousands)
|
||||||||||
Balance, beginning of year
|
$
|
147
|
|
|
$
|
326
|
|
|
$
|
460
|
|
Additions:
|
|
|
|
|
|
||||||
Acquisitions
|
—
|
|
|
524
|
|
|
326
|
|
|||
Foreclosures
|
644
|
|
|
15
|
|
|
—
|
|
|||
Sales
|
(329
|
)
|
|
(1,055
|
)
|
|
(507
|
)
|
|||
Gain (loss) on sale
|
(20
|
)
|
|
346
|
|
|
47
|
|
|||
Write downs
|
(1
|
)
|
|
(9
|
)
|
|
—
|
|
|||
Balance, end of year
|
$
|
441
|
|
|
$
|
147
|
|
|
$
|
326
|
|
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Land
|
$
|
13,820
|
|
|
$
|
18,902
|
|
Premises
|
16,697
|
|
|
25,361
|
|
||
Leasehold improvements
|
25,884
|
|
|
15,824
|
|
||
Furniture, fixtures and equipment
|
33,871
|
|
|
28,994
|
|
||
Automobiles
|
173
|
|
|
173
|
|
||
Subtotal
|
90,445
|
|
|
89,254
|
|
||
Less: accumulated depreciation
|
31,444
|
|
|
24,563
|
|
||
Total
|
$
|
59,001
|
|
|
$
|
64,691
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(dollars in thousands)
|
||||||||||
Balance, beginning of year
|
$
|
808,726
|
|
|
$
|
493,329
|
|
|
$
|
102,490
|
|
Goodwill acquired during the year
|
—
|
|
|
313,043
|
|
|
390,839
|
|
|||
Purchase accounting adjustments
|
(404
|
)
|
|
2,354
|
|
|
—
|
|
|||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance, end of year
|
$
|
808,322
|
|
|
$
|
808,726
|
|
|
$
|
493,329
|
|
Accumulated impairment losses at end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(dollars in thousands)
|
||||||||||
Gross Balance of CDI:
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
125,945
|
|
|
$
|
54,809
|
|
|
$
|
15,102
|
|
Additions due to acquisitions
|
—
|
|
|
71,136
|
|
|
39,707
|
|
|||
Balance, end of year
|
125,945
|
|
|
125,945
|
|
|
54,809
|
|
|||
Accumulated amortization:
|
|
|
|
|
|
||||||
Balance, beginning of year
|
(25,389
|
)
|
|
(11,795
|
)
|
|
(5,651
|
)
|
|||
Amortization
|
(17,244
|
)
|
|
(13,594
|
)
|
|
(6,144
|
)
|
|||
Balance, end of year
|
(42,633
|
)
|
|
(25,389
|
)
|
|
(11,795
|
)
|
|||
Net CDI, end of year
|
$
|
83,312
|
|
|
$
|
100,556
|
|
|
$
|
43,014
|
|
|
|
Amount
|
||
Year Ending December 31,
|
|
(dollars in thousands)
|
||
2020
|
|
$
|
9,776
|
|
2021
|
|
6,596
|
|
|
2022
|
|
3,806
|
|
|
2023
|
|
187
|
|
|
2024
|
|
182
|
|
|
Thereafter
|
|
867
|
|
|
Total unfunded commitments
|
|
$
|
21,414
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Tax credit and other tax benefits recognized
|
|
$
|
6,506
|
|
|
$
|
4,748
|
|
|
$
|
1,719
|
|
Amortization of investments
|
|
5,527
|
|
|
4,574
|
|
|
1,599
|
|
|
|
2019
|
|
2018
|
||||||||||
|
|
Amount
|
|
Weighted
Average Interest Rate |
|
Amount
|
|
Weighted
Average Interest Rate |
||||||
|
|
(dollars in thousands)
|
||||||||||||
Noninterest-bearing checking
|
|
$
|
3,857,660
|
|
|
—
|
%
|
|
$
|
3,495,737
|
|
|
—
|
%
|
Interest-bearing checking
|
|
586,019
|
|
|
0.43
|
%
|
|
526,088
|
|
|
0.38
|
%
|
||
Money market
|
|
3,171,164
|
|
|
0.83
|
%
|
|
2,975,578
|
|
|
0.89
|
%
|
||
Savings
|
|
235,824
|
|
|
0.16
|
%
|
|
250,271
|
|
|
0.14
|
%
|
||
Certificates of deposit accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
||
250,000 or less
|
|
500,331
|
|
|
1.59
|
%
|
|
569,877
|
|
|
1.44
|
%
|
||
Greater than $250,000
|
|
547,511
|
|
|
1.77
|
%
|
|
840,800
|
|
|
2.12
|
%
|
||
Total certificates of deposit accounts
|
|
1,047,842
|
|
|
1.69
|
%
|
|
1,410,677
|
|
|
1.84
|
%
|
||
Total deposits
|
|
$
|
8,898,509
|
|
|
0.53
|
%
|
|
$
|
8,658,351
|
|
|
0.63
|
%
|
|
2019
|
|||||
|
Amount
|
|
Weighted Average Interest Rate
|
|||
|
(dollars in thousands)
|
|||||
Within 3 months
|
$
|
571,143
|
|
|
1.70
|
%
|
4 to 6 months
|
240,132
|
|
|
1.87
|
%
|
|
7 to 12 months
|
138,515
|
|
|
1.46
|
%
|
|
13 to 24 months
|
76,617
|
|
|
1.49
|
%
|
|
25 to 36 months
|
11,182
|
|
|
1.24
|
%
|
|
37 to 60 months
|
9,644
|
|
|
1.71
|
%
|
|
Over 60 months
|
609
|
|
|
2.08
|
%
|
|
Total
|
$
|
1,047,842
|
|
|
1.69
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(dollars in thousands)
|
||||||||||
Checking accounts
|
$
|
2,340
|
|
|
$
|
1,167
|
|
|
$
|
365
|
|
Money market accounts
|
28,279
|
|
|
19,567
|
|
|
6,720
|
|
|||
Savings
|
382
|
|
|
357
|
|
|
251
|
|
|||
Certificates of deposit accounts
|
27,296
|
|
|
16,562
|
|
|
6,035
|
|
|||
Total
|
$
|
58,297
|
|
|
$
|
37,653
|
|
|
$
|
13,371
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Average balance outstanding
|
$
|
404,959
|
|
|
$
|
529,278
|
|
Weighted average rate
|
2.43
|
%
|
|
2.06
|
%
|
||
Maximum amount outstanding at any month-end during the year
|
1,091,596
|
|
|
883,612
|
|
||
Balance outstanding at end of year
|
517,026
|
|
|
667,606
|
|
||
Weighted average interest rate at year-end
|
1.69
|
%
|
|
2.51
|
%
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Average balance outstanding
|
$
|
229
|
|
|
$
|
29,193
|
|
Weighted average rate
|
0.63
|
%
|
|
1.69
|
%
|
||
Maximum amount outstanding at any month-end during the year
|
10,000
|
|
|
52,091
|
|
||
Balance outstanding at end of year
|
—
|
|
|
75
|
|
||
Weighted average interest rate at year-end
|
—
|
%
|
|
0.01
|
%
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|||||||
|
|
Stated Maturity
|
|
Current Interest Rate
|
|
Current Principal Balance
|
|
Carrying Value
|
|||||||||
|
|
|
|
|
|
(dollars in thousands)
|
|||||||||||
Subordinated notes
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated notes due 2024, 5.75% per annum
|
|
September 3, 2024
|
|
5.75
|
%
|
|
$
|
60,000
|
|
|
$
|
59,432
|
|
|
$
|
59,312
|
|
Subordinated notes due 2029, 4.875% per annum until May 15, 2024, 3-month LIBOR +2.5% thereafter
|
|
May 15, 2029
|
|
4.875
|
%
|
|
125,000
|
|
|
122,622
|
|
|
—
|
|
|||
Subordinated notes due 2025, 7.125% per annum
|
|
June 26, 2025
|
|
7.125
|
%
|
|
25,000
|
|
|
25,133
|
|
|
25,158
|
|
|||
Total subordinated notes
|
|
|
|
|
|
210,000
|
|
|
207,187
|
|
|
84,470
|
|
||||
Subordinated debt
|
|
|
|
|
|
|
|
|
|
|
|||||||
PPBI Trust I, 3-month LIBOR+2.75%
|
|
April 6, 2034
|
|
|
|
—
|
|
|
—
|
|
|
10,310
|
|
||||
Heritage Oaks Capital Trust II (junior subordinated debt), 3-month LIBOR+1.72%
|
|
January 1, 2037
|
|
3.82
|
%
|
|
5,248
|
|
|
4,054
|
|
|
3,986
|
|
|||
Santa Lucia Bancorp (CA) Capital Trust (junior subordinated debt), 3-month LIBOR+1.48%
|
|
July 7, 2036
|
|
3.47
|
%
|
|
5,155
|
|
|
3,904
|
|
|
3,829
|
|
|||
Mission Community Capital Trust (junior subordinated debt), 3-month LIBOR+2.95%
|
|
October 7, 2033
|
|
|
|
—
|
|
|
—
|
|
|
2,787
|
|
||||
First Commerce Bancorp Statutory Trust I (junior subordinated debt), 3-month LIBOR+2.95%
|
|
September 17, 2033
|
|
|
|
—
|
|
|
—
|
|
|
4,931
|
|
||||
Total subordinated debt
|
|
|
|
|
|
10,403
|
|
|
7,958
|
|
|
25,843
|
|
||||
Total subordinated debentures
|
|
|
|
|
|
$
|
220,403
|
|
|
$
|
215,145
|
|
|
$
|
110,313
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Average balance outstanding
|
$
|
183,383
|
|
|
$
|
107,732
|
|
Weighted average rate
|
5.82
|
%
|
|
6.23
|
%
|
||
Maximum amount outstanding at any month-end during the year
|
233,119
|
|
|
110,313
|
|
||
Balance outstanding at end of year
|
215,145
|
|
|
110,313
|
|
||
Weighted average interest rate at year-end
|
5.37
|
%
|
|
6.04
|
%
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Current income tax provision:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
34,124
|
|
|
$
|
19,787
|
|
|
$
|
18,644
|
|
State
|
|
16,415
|
|
|
13,178
|
|
|
7,062
|
|
|||
Total current income tax provision
|
|
50,539
|
|
|
32,965
|
|
|
25,706
|
|
|||
Deferred income tax provision (benefit):
|
|
|
|
|
|
|
|
|
|
|||
Federal
|
|
4,645
|
|
|
8,142
|
|
|
8,294
|
|
|||
Effect of the Tax Act
|
|
—
|
|
|
(1,441
|
)
|
|
5,633
|
|
|||
State
|
|
2,851
|
|
|
2,574
|
|
|
2,493
|
|
|||
Total deferred income tax provision (benefit)
|
|
7,496
|
|
|
9,275
|
|
|
16,420
|
|
|||
Total income tax provision
|
|
$
|
58,035
|
|
|
$
|
42,240
|
|
|
$
|
42,126
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Statutory federal income tax provision
|
|
$
|
45,729
|
|
|
$
|
34,803
|
|
|
$
|
35,778
|
|
State taxes, net of federal income tax effect
|
|
15,764
|
|
|
12,724
|
|
|
6,720
|
|
|||
Cash surrender life insurance
|
|
(565
|
)
|
|
(582
|
)
|
|
(645
|
)
|
|||
Tax exempt interest
|
|
(1,503
|
)
|
|
(1,135
|
)
|
|
(1,660
|
)
|
|||
Non-deductible merger costs
|
|
—
|
|
|
375
|
|
|
824
|
|
|||
LIHTC investments
|
|
(1,570
|
)
|
|
(761
|
)
|
|
(1,031
|
)
|
|||
Effect of the Tax Act
|
|
—
|
|
|
(1,441
|
)
|
|
5,633
|
|
|||
Excess tax benefit of stock-based compensation
|
|
(728
|
)
|
|
(1,811
|
)
|
|
(1,995
|
)
|
|||
Prior year true-up
|
|
—
|
|
|
—
|
|
|
(1,108
|
)
|
|||
Other
|
|
908
|
|
|
68
|
|
|
(390
|
)
|
|||
Total income tax provision
|
|
$
|
58,035
|
|
|
$
|
42,240
|
|
|
$
|
42,126
|
|
|
|
2019
|
|
2018
|
||||
|
|
(dollars in thousands)
|
||||||
Deferred tax assets:
|
|
|
|
|
||||
Accrued expenses
|
|
$
|
2,126
|
|
|
$
|
3,239
|
|
Net operating loss
|
|
4,765
|
|
|
6,115
|
|
||
Allowance for loan losses, net of bad debt charge-offs
|
|
10,415
|
|
|
10,709
|
|
||
Deferred compensation
|
|
3,616
|
|
|
3,649
|
|
||
State taxes
|
|
3,746
|
|
|
2,707
|
|
||
Loan discount
|
|
11,634
|
|
|
17,677
|
|
||
Stock-based compensation
|
|
3,535
|
|
|
3,234
|
|
||
Unrealized loss on available for sale securities
|
|
—
|
|
|
2,308
|
|
||
Operating lease liabilities
|
|
13,334
|
|
|
—
|
|
||
AMT credit and other state tax credit carryovers
|
|
416
|
|
|
96
|
|
||
Total deferred tax assets
|
|
53,587
|
|
|
49,734
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
Operating lease right-of-use assets
|
|
$
|
(12,382
|
)
|
|
$
|
—
|
|
Deferred FDIC gain
|
|
(228
|
)
|
|
(364
|
)
|
||
Core deposit intangibles
|
|
(22,415
|
)
|
|
(27,388
|
)
|
||
Loan origination costs
|
|
(4,828
|
)
|
|
(4,760
|
)
|
||
Depreciation
|
|
(1,814
|
)
|
|
(1,192
|
)
|
||
Unrealized gain on available for sale securities
|
|
(8,639
|
)
|
|
—
|
|
||
Other
|
|
(4,652
|
)
|
|
(403
|
)
|
||
Total deferred tax liabilities
|
|
(54,958
|
)
|
|
(34,107
|
)
|
||
Valuation allowance
|
|
—
|
|
|
—
|
|
||
Net deferred tax (liabilities) asset
|
|
$
|
(1,371
|
)
|
|
$
|
15,627
|
|
|
|
2019
|
|
2018
|
||||
|
|
(dollars in thousands)
|
||||||
Balance at January 1,
|
|
$
|
2,906
|
|
|
$
|
2,906
|
|
Additions based on tax positions related to prior years
|
|
—
|
|
|
—
|
|
||
Balance at December 31,
|
|
$
|
2,906
|
|
|
$
|
2,906
|
|
|
2019
|
|||||||||||
|
Number of Stock Options Outstanding
|
|
Weighted Average Exercise Price Per Share
|
|
Weighted Average Remaining Contractual Term
|
|
Aggregate Intrinsic value
|
|||||
|
|
|
|
|
(in years)
|
|
(dollars in thousands)
|
|||||
Outstanding at January 1, 2019
|
681,933
|
|
|
$
|
15.26
|
|
|
|
|
|
||
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
(220,118
|
)
|
|
13.17
|
|
|
|
|
|
|||
Forfeited and expired
|
(8,711
|
)
|
|
15.84
|
|
|
|
|
|
|||
Outstanding at December 31, 2019
|
453,104
|
|
|
$
|
16.26
|
|
|
4.66
|
|
$
|
7,401
|
|
Vested and exercisable at December 31, 2019
|
451,424
|
|
|
$
|
16.24
|
|
|
4.66
|
|
$
|
7,382
|
|
|
2019
|
|||||
|
Shares
|
|
Weighted Average Grant-Date Fair Value Per Share
|
|||
Unvested at the beginning of the year
|
636,077
|
|
|
$
|
35.98
|
|
Granted
|
423,823
|
|
|
29.92
|
|
|
Vested
|
(287,754
|
)
|
|
29.43
|
|
|
Forfeited
|
(32,213
|
)
|
|
34.76
|
|
|
Unvested at the end of the year
|
739,933
|
|
|
$
|
35.11
|
|
|
|
At December 31, 2019
|
||||||||||||||
|
|
Fair Value Measurement Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Securities at
Fair Value
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
|
$
|
—
|
|
|
$
|
63,555
|
|
|
$
|
—
|
|
|
$
|
63,555
|
|
Agency
|
|
—
|
|
|
246,358
|
|
|
—
|
|
|
246,358
|
|
||||
Corporate
|
|
—
|
|
|
151,353
|
|
|
—
|
|
|
151,353
|
|
||||
Municipal bonds
|
|
—
|
|
|
397,298
|
|
|
—
|
|
|
397,298
|
|
||||
Collateralized mortgage obligation: residential
|
|
—
|
|
|
9,984
|
|
|
—
|
|
|
9,984
|
|
||||
Mortgage-backed securities: residential
|
|
—
|
|
|
499,836
|
|
|
—
|
|
|
499,836
|
|
||||
Total securities available-for-sale
|
|
$
|
—
|
|
|
$
|
1,368,384
|
|
|
$
|
—
|
|
|
$
|
1,368,384
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
$
|
—
|
|
|
$
|
2,103
|
|
|
$
|
—
|
|
|
$
|
2,103
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
|
$
|
—
|
|
|
$
|
2,103
|
|
|
$
|
—
|
|
|
$
|
2,103
|
|
|
|
At December 31, 2018
|
||||||||||||||
|
|
Fair Value Measurement Using
|
|
|
|
|||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Securities at
Fair Value
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
|
$
|
—
|
|
|
$
|
60,912
|
|
|
$
|
—
|
|
|
$
|
60,912
|
|
Agency
|
|
—
|
|
|
130,070
|
|
|
$
|
—
|
|
|
130,070
|
|
|||
Corporate
|
|
—
|
|
|
103,543
|
|
|
$
|
—
|
|
|
103,543
|
|
|||
Municipal bonds
|
|
—
|
|
|
238,630
|
|
|
—
|
|
|
238,630
|
|
||||
Collateralized mortgage obligation: residential
|
|
—
|
|
|
24,338
|
|
|
—
|
|
|
24,338
|
|
||||
Mortgage-backed securities: residential
|
|
—
|
|
|
545,729
|
|
|
—
|
|
|
545,729
|
|
||||
Total securities available-for-sale
|
|
$
|
—
|
|
|
$
|
1,103,222
|
|
|
$
|
—
|
|
|
$
|
1,103,222
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
$
|
—
|
|
|
$
|
1,681
|
|
|
$
|
—
|
|
|
$
|
1,681
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
|
$
|
—
|
|
|
$
|
1,681
|
|
|
$
|
—
|
|
|
$
|
1,681
|
|
|
|
At December 31, 2019
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,257
|
|
|
$
|
2,257
|
|
|
|
At December 31, 2018
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,445
|
|
|
$
|
1,445
|
|
|
|
At December 31, 2019
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
326,850
|
|
|
$
|
326,850
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
326,850
|
|
Interest-bearing time deposits with financial institutions
|
|
2,708
|
|
|
2,708
|
|
|
—
|
|
|
—
|
|
|
2,708
|
|
|||||
Investments held-to-maturity
|
|
37,838
|
|
|
—
|
|
|
38,760
|
|
|
—
|
|
|
38,760
|
|
|||||
Investment securities available-for-sale
|
|
1,368,384
|
|
|
—
|
|
|
1,368,384
|
|
|
—
|
|
|
1,368,384
|
|
|||||
Loans held for sale
|
|
1,672
|
|
|
—
|
|
|
1,821
|
|
|
—
|
|
|
1,821
|
|
|||||
Loans held for investment, net
|
|
8,722,311
|
|
|
—
|
|
|
—
|
|
|
8,691,019
|
|
|
8,691,019
|
|
|||||
Derivative asset
|
|
2,103
|
|
|
—
|
|
|
2,103
|
|
|
—
|
|
|
2,103
|
|
|||||
Accrued interest receivable
|
|
39,442
|
|
|
39,442
|
|
|
—
|
|
|
—
|
|
|
39,442
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposit accounts
|
|
8,898,509
|
|
|
7,850,667
|
|
|
1,048,583
|
|
|
—
|
|
|
8,899,250
|
|
|||||
FHLB advances
|
|
517,026
|
|
|
—
|
|
|
517,291
|
|
|
—
|
|
|
517,291
|
|
|||||
Other borrowings
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subordinated debentures
|
|
215,145
|
|
|
—
|
|
|
237,001
|
|
|
—
|
|
|
237,001
|
|
|||||
Derivative liability
|
|
2,103
|
|
|
—
|
|
|
2,103
|
|
|
—
|
|
|
2,103
|
|
|||||
Accrued interest payable
|
|
2,686
|
|
|
2,686
|
|
|
—
|
|
|
—
|
|
|
2,686
|
|
|
|
At December 31, 2018
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
203,406
|
|
|
$
|
203,406
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
203,406
|
|
Interest-bearing time deposits with financial institutions
|
|
6,143
|
|
|
6,143
|
|
|
—
|
|
|
—
|
|
|
6,143
|
|
|||||
Investments held-to-maturity
|
|
45,210
|
|
|
—
|
|
|
44,672
|
|
|
—
|
|
|
44,672
|
|
|||||
Investment securities available-for-sale
|
|
1,103,222
|
|
|
—
|
|
|
1,103,222
|
|
|
—
|
|
|
1,103,222
|
|
|||||
Loans held for sale
|
|
5,719
|
|
|
—
|
|
|
6,072
|
|
|
—
|
|
|
6,072
|
|
|||||
Loans held for investment, net
|
|
8,836,818
|
|
|
—
|
|
|
—
|
|
|
8,697,594
|
|
|
8,697,594
|
|
|||||
Derivative asset
|
|
1,929
|
|
|
—
|
|
|
1,681
|
|
|
—
|
|
|
1,681
|
|
|||||
Accrued interest receivable
|
|
37,837
|
|
|
37,837
|
|
|
—
|
|
|
—
|
|
|
37,837
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposit accounts
|
|
8,658,351
|
|
|
7,247,673
|
|
|
1,403,524
|
|
|
—
|
|
|
8,651,197
|
|
|||||
FHLB advances
|
|
667,606
|
|
|
—
|
|
|
666,864
|
|
|
—
|
|
|
666,864
|
|
|||||
Other borrowings
|
|
75
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
75
|
|
|||||
Subordinated debentures
|
|
110,313
|
|
|
—
|
|
|
115,613
|
|
|
—
|
|
|
115,613
|
|
|||||
Derivative liability
|
|
1,929
|
|
|
—
|
|
|
1,681
|
|
|
—
|
|
|
1,681
|
|
|||||
Accrued interest payable
|
|
3,255
|
|
|
3,255
|
|
|
—
|
|
|
—
|
|
|
3,255
|
|
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands, except per share data)
|
||||||||||
Basic
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
159,718
|
|
|
$
|
123,340
|
|
|
$
|
60,100
|
|
Less: Earnings allocated to participating securities
|
|
(1,650
|
)
|
|
—
|
|
|
—
|
|
|||
Net income allocated to common stockholders
|
|
$
|
158,068
|
|
|
$
|
123,340
|
|
|
$
|
60,100
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding
|
|
60,339,714
|
|
|
53,963,047
|
|
|
37,705,556
|
|
|||
Basic earnings per common share
|
|
$
|
2.62
|
|
|
$
|
2.29
|
|
|
$
|
1.59
|
|
|
|
|
|
|
|
|
||||||
Diluted
|
|
|
|
|
|
|
||||||
Net income allocated to common stockholders
|
|
$
|
158,068
|
|
|
$
|
123,340
|
|
|
$
|
60,100
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding
|
|
60,339,714
|
|
|
53,963,047
|
|
|
37,705,556
|
|
|||
Diluted effect of share-based compensation
|
|
352,567
|
|
|
650,010
|
|
|
805,705
|
|
|||
Weighted average diluted common shares
|
|
60,692,281
|
|
|
54,613,057
|
|
|
38,511,261
|
|
|||
Diluted earnings per common share
|
|
$
|
2.60
|
|
|
$
|
2.26
|
|
|
$
|
1.56
|
|
|
December 31, 2019
|
||||||||||||||
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
Notional
|
|
Fair Value
|
|
Notional
|
|
Fair Value
|
||||||||
|
(dollars in thousands)
|
||||||||||||||
Derivative instruments not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
$
|
76,314
|
|
|
$
|
2,103
|
|
|
$
|
76,314
|
|
|
$
|
2,103
|
|
Total derivative instruments
|
$
|
76,314
|
|
|
$
|
2,103
|
|
|
$
|
76,314
|
|
|
$
|
2,103
|
|
|
December 31, 2018
|
||||||||||||||
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
Notional
|
|
Fair Value
|
|
Notional
|
|
Fair Value
|
||||||||
|
(dollars in thousands)
|
||||||||||||||
Derivative instruments not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
$
|
57,502
|
|
|
$
|
1,681
|
|
|
$
|
57,502
|
|
|
$
|
1,681
|
|
Total derivative instruments
|
$
|
57,502
|
|
|
$
|
1,681
|
|
|
$
|
57,502
|
|
|
$
|
1,681
|
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
|
Within Scope(1)
|
|
Out-of-Scope(2)
|
|
Within Scope(1)
|
|
Out-of-Scope(2)
|
|
Within Scope(1)
|
|
Out-of-Scope(2)
|
||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan servicing fees
|
$
|
—
|
|
|
$
|
1,840
|
|
|
$
|
—
|
|
|
$
|
1,445
|
|
|
$
|
—
|
|
|
$
|
787
|
|
Service charges on deposit accounts
|
5,769
|
|
|
—
|
|
|
5,128
|
|
|
—
|
|
|
3,273
|
|
|
—
|
|
||||||
Other service fee income
|
1,438
|
|
|
—
|
|
|
902
|
|
|
—
|
|
|
1,847
|
|
|
—
|
|
||||||
Debit card interchange income
|
3,004
|
|
|
—
|
|
|
4,326
|
|
|
—
|
|
|
2,043
|
|
|
—
|
|
||||||
Earnings on bank-owned life insurance
|
—
|
|
|
3,486
|
|
|
—
|
|
|
3,427
|
|
|
—
|
|
|
2,279
|
|
||||||
Net gain from sales of loans
|
—
|
|
|
6,642
|
|
|
—
|
|
|
10,759
|
|
|
—
|
|
|
12,468
|
|
||||||
Net gain from sales of investment securities
|
—
|
|
|
8,571
|
|
|
—
|
|
|
1,399
|
|
|
—
|
|
|
2,737
|
|
||||||
Other income
|
1,015
|
|
|
3,471
|
|
|
1,242
|
|
|
2,399
|
|
|
491
|
|
|
5,189
|
|
||||||
Total noninterest income
|
$
|
11,226
|
|
|
$
|
24,010
|
|
|
$
|
11,598
|
|
|
$
|
19,429
|
|
|
$
|
7,654
|
|
|
$
|
23,460
|
|
|
|
December 31, 2019
|
||
|
|
(dollars in thousands)
|
||
Balance Sheet:
|
|
|
||
Operating lease right of use assets
|
|
$
|
43,177
|
|
Operating lease liabilities
|
|
46,498
|
|
|
Cash Flows:
|
|
|
||
Operating cash flows from operating leases
|
|
11,747
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
|
|
(dollars in thousands, except per share data)
|
||||||||||||||
For the year ended December 31, 2019:
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
131,243
|
|
|
$
|
132,414
|
|
|
$
|
132,604
|
|
|
$
|
129,846
|
|
Interest expense
|
|
19,837
|
|
|
21,773
|
|
|
20,269
|
|
|
16,927
|
|
||||
Provision for credit losses
|
|
1,526
|
|
|
334
|
|
|
1,562
|
|
|
2,297
|
|
||||
Noninterest income
|
|
7,681
|
|
|
6,324
|
|
|
11,430
|
|
|
9,801
|
|
||||
Noninterest expense
|
|
63,577
|
|
|
63,936
|
|
|
65,336
|
|
|
66,216
|
|
||||
Income tax provision
|
|
15,266
|
|
|
14,168
|
|
|
15,492
|
|
|
13,109
|
|
||||
Net income
|
|
$
|
38,718
|
|
|
$
|
38,527
|
|
|
$
|
41,375
|
|
|
$
|
41,098
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
0.62
|
|
|
$
|
0.62
|
|
|
$
|
0.69
|
|
|
$
|
0.69
|
|
Diluted
|
|
0.62
|
|
|
0.62
|
|
|
0.69
|
|
|
0.69
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
For the year ended December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income
|
|
$
|
90,827
|
|
|
$
|
92,699
|
|
|
$
|
128,876
|
|
|
$
|
136,021
|
|
Interest expense
|
|
9,546
|
|
|
11,528
|
|
|
16,163
|
|
|
18,475
|
|
||||
Provision for credit losses
|
|
2,253
|
|
|
1,761
|
|
|
1,981
|
|
|
2,258
|
|
||||
Noninterest income
|
|
7,666
|
|
|
8,151
|
|
|
8,240
|
|
|
6,970
|
|
||||
Noninterest expense
|
|
49,808
|
|
|
50,076
|
|
|
82,782
|
|
|
67,239
|
|
||||
Income tax provision
|
|
8,884
|
|
|
10,182
|
|
|
7,798
|
|
|
15,376
|
|
||||
Net income
|
|
$
|
28,002
|
|
|
$
|
27,303
|
|
|
$
|
28,392
|
|
|
$
|
39,643
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
0.61
|
|
|
$
|
0.59
|
|
|
$
|
0.46
|
|
|
$
|
0.64
|
|
Diluted
|
|
0.60
|
|
|
0.58
|
|
|
0.46
|
|
|
0.63
|
|
PACIFIC PREMIER BANCORP, INC.
|
||||||||
STATEMENTS OF FINANCIAL CONDITION
|
||||||||
(Parent company only)
|
||||||||
|
|
At December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(dollars in thousands)
|
||||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
13,717
|
|
|
$
|
13,160
|
|
Investment in subsidiaries
|
|
2,217,903
|
|
|
2,068,077
|
|
||
Other assets
|
|
1,230
|
|
|
1,689
|
|
||
Total Assets
|
|
$
|
2,232,850
|
|
|
$
|
2,082,926
|
|
Liabilities
|
|
|
|
|
|
|
||
Subordinated debentures
|
|
$
|
215,145
|
|
|
$
|
110,313
|
|
Accrued expenses and other liabilities
|
|
5,111
|
|
|
2,916
|
|
||
Total Liabilities
|
|
220,256
|
|
|
113,229
|
|
||
Total Stockholders’ Equity
|
|
2,012,594
|
|
|
1,969,697
|
|
||
Total Liabilities and Stockholders’ Equity
|
|
$
|
2,232,850
|
|
|
$
|
2,082,926
|
|
PACIFIC PREMIER BANCORP, INC.
|
||||||||||||
STATEMENTS OF OPERATIONS
|
||||||||||||
(Parent company only)
|
||||||||||||
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Income
|
|
|
|
|
|
|
||||||
Dividend income from the Bank
|
|
$
|
54,118
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest income
|
|
51
|
|
|
57
|
|
|
36
|
|
|||
Total income
|
|
54,169
|
|
|
57
|
|
|
36
|
|
|||
Expense
|
|
|
|
|
|
|
|
|
|
|||
Interest expense on subordinated debentures
|
|
10,680
|
|
|
6,716
|
|
|
4,721
|
|
|||
Compensation and benefits
|
|
3,106
|
|
|
2,757
|
|
|
2,832
|
|
|||
Other noninterest expense
|
|
2,818
|
|
|
3,384
|
|
|
6,123
|
|
|||
Total expense
|
|
16,604
|
|
|
12,857
|
|
|
13,676
|
|
|||
Income (loss) before income tax provision
|
|
37,565
|
|
|
(12,800
|
)
|
|
(13,640
|
)
|
|||
Income tax benefit
|
|
(4,695
|
)
|
|
(3,680
|
)
|
|
(5,417
|
)
|
|||
Income (loss) before undistributed income of subsidiary
|
|
42,260
|
|
|
(9,120
|
)
|
|
(8,223
|
)
|
|||
Equity in undistributed earnings of subsidiary
|
|
117,458
|
|
|
132,460
|
|
|
68,323
|
|
|||
Net income
|
|
$
|
159,718
|
|
|
$
|
123,340
|
|
|
$
|
60,100
|
|
PACIFIC PREMIER BANCORP, INC.
|
||||||||||||
SUMMARY STATEMENTS OF CASH FLOWS
|
||||||||||||
(Parent company only)
|
||||||||||||
|
|
For the Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(dollars in thousands)
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
159,718
|
|
|
$
|
123,340
|
|
|
$
|
60,100
|
|
Adjustments to reconcile net income to cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Share-based compensation expense
|
|
10,528
|
|
|
9,033
|
|
|
5,809
|
|
|||
Equity in undistributed earnings of subsidiary and dividends from the bank
|
|
(117,458
|
)
|
|
(132,460
|
)
|
|
(68,323
|
)
|
|||
Increase in current and deferred taxes
|
|
42
|
|
|
65
|
|
|
—
|
|
|||
Change in accrued expenses and other liabilities, net
|
|
3,131
|
|
|
(4,149
|
)
|
|
(365
|
)
|
|||
Change in accrued interest receivable and other assets, net
|
|
(4,826
|
)
|
|
2,461
|
|
|
817
|
|
|||
Net cash provided by (used) in operating activities
|
|
51,135
|
|
|
(1,710
|
)
|
|
(1,962
|
)
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Cash acquired in acquisitions, net
|
|
—
|
|
|
2,985
|
|
|
—
|
|
|||
Other, net
|
|
—
|
|
|
(5,467
|
)
|
|
601
|
|
|||
Net cash (used in) provided by investing activities
|
|
—
|
|
|
(2,482
|
)
|
|
601
|
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|||
Redemption of junior subordinated debt securities
|
|
(18,558
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of subordinated debt, net
|
|
122,453
|
|
|
—
|
|
|
—
|
|
|||
Cash dividends paid
|
|
(53,867
|
)
|
|
—
|
|
|
—
|
|
|||
Repurchase and retirement of common stock
|
|
(100,000
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from exercise of options
|
|
2,679
|
|
|
1,924
|
|
|
4,592
|
|
|||
Restricted stock surrendered and canceled
|
|
(3,285
|
)
|
|
(1,669
|
)
|
|
(1,258
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(50,578
|
)
|
|
255
|
|
|
3,334
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
557
|
|
|
(3,937
|
)
|
|
1,973
|
|
|||
Cash and cash equivalents, beginning of year
|
|
13,160
|
|
|
17,097
|
|
|
15,124
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
13,717
|
|
|
13,160
|
|
|
$
|
17,097
|
|
|
Grandpoint
|
|
Fair Value
|
|
Fair
|
||||||
|
Book Value
|
|
Adjustment
|
|
Value
|
||||||
|
(dollars in thousands)
|
||||||||||
ASSETS ACQUIRED
|
|
||||||||||
Cash and cash equivalents
|
$
|
147,551
|
|
|
$
|
—
|
|
|
$
|
147,551
|
|
Investment securities
|
395,905
|
|
|
(3,047
|
)
|
|
392,858
|
|
|||
Loans, gross
|
2,404,042
|
|
|
(51,325
|
)
|
|
2,352,717
|
|
|||
Allowance for loan losses
|
(18,665
|
)
|
|
18,665
|
|
|
—
|
|
|||
Fixed assets
|
6,015
|
|
|
3,107
|
|
|
9,122
|
|
|||
Core deposit intangible
|
5,093
|
|
|
66,850
|
|
|
71,943
|
|
|||
Deferred tax assets
|
14,185
|
|
|
(9,157
|
)
|
|
5,028
|
|
|||
Other assets
|
97,441
|
|
|
(436
|
)
|
|
97,005
|
|
|||
Total assets acquired
|
$
|
3,051,567
|
|
|
$
|
24,657
|
|
|
$
|
3,076,224
|
|
LIABILITIES ASSUMED
|
|
|
|
|
|
||||||
Deposits
|
$
|
2,506,663
|
|
|
$
|
266
|
|
|
$
|
2,506,929
|
|
Borrowings
|
255,155
|
|
|
(232
|
)
|
|
254,923
|
|
|||
Other Liabilities
|
23,687
|
|
|
1,172
|
|
|
24,859
|
|
|||
Total liabilities assumed
|
2,785,505
|
|
|
1,206
|
|
|
2,786,711
|
|
|||
Excess of assets acquired over liabilities assumed
|
$
|
266,062
|
|
|
$
|
23,451
|
|
|
289,513
|
|
|
Consideration paid
|
|
|
|
|
602,152
|
|
|||||
Goodwill recognized
|
|
|
|
|
$
|
312,639
|
|
|
PLZZ
|
|
Fair Value
|
|
Fair
|
||||||
|
Book Value
|
|
Adjustment
|
|
Value
|
||||||
|
(dollars in thousands)
|
||||||||||
ASSETS ACQUIRED
|
|
||||||||||
Cash and cash equivalents
|
$
|
150,459
|
|
|
$
|
—
|
|
|
$
|
150,459
|
|
Loans, gross
|
1,069,359
|
|
|
(6,458
|
)
|
|
1,062,901
|
|
|||
Allowance for loan losses
|
(13,009
|
)
|
|
13,009
|
|
|
—
|
|
|||
Fixed assets
|
7,389
|
|
|
(1,424
|
)
|
|
5,965
|
|
|||
Core deposit intangible
|
198
|
|
|
10,575
|
|
|
10,773
|
|
|||
Deferred tax assets
|
11,849
|
|
|
(6,123
|
)
|
|
5,726
|
|
|||
Other assets
|
19,495
|
|
|
(589
|
)
|
|
18,906
|
|
|||
Total assets acquired
|
$
|
1,245,740
|
|
|
$
|
8,990
|
|
|
$
|
1,254,730
|
|
LIABILITIES ASSUMED
|
|
|
|
|
|
||||||
Deposits
|
$
|
1,081,727
|
|
|
$
|
1,224
|
|
|
$
|
1,082,951
|
|
Borrowings
|
40,755
|
|
|
397
|
|
|
41,152
|
|
|||
Other Liabilities
|
8,956
|
|
|
(450
|
)
|
|
8,506
|
|
|||
Total liabilities assumed
|
1,131,438
|
|
|
1,171
|
|
|
1,132,609
|
|
|||
Excess of assets acquired over liabilities assumed
|
$
|
114,302
|
|
|
$
|
7,819
|
|
|
122,121
|
|
|
Consideration paid
|
|
|
|
|
245,761
|
|
|||||
Goodwill recognized
|
|
|
|
|
$
|
123,640
|
|
|
HEOP
Book Value
|
|
Fair Value
Adjustments
|
|
Fair
Value
|
||||||
ASSETS ACQUIRED
|
(dollars in thousands)
|
||||||||||
Cash and cash equivalents
|
$
|
78,728
|
|
|
$
|
—
|
|
|
$
|
78,728
|
|
Investment securities
|
445,299
|
|
|
(2,376
|
)
|
|
442,923
|
|
|||
Loans, gross
|
1,384,949
|
|
|
(20,261
|
)
|
|
1,364,688
|
|
|||
Allowance for loan losses
|
(17,200
|
)
|
|
17,200
|
|
|
—
|
|
|||
Fixed assets
|
35,567
|
|
|
(665
|
)
|
|
34,902
|
|
|||
Core deposit intangible
|
3,207
|
|
|
24,916
|
|
|
28,123
|
|
|||
Deferred tax assets
|
17,850
|
|
|
(7,606
|
)
|
|
10,244
|
|
|||
Other assets
|
55,235
|
|
|
(21
|
)
|
|
55,214
|
|
|||
Total assets acquired
|
$
|
2,003,635
|
|
|
$
|
11,187
|
|
|
$
|
2,014,822
|
|
LIABILITIES ASSUMED
|
|
|
|
|
|
|
|
|
|||
Deposits
|
$
|
1,668,085
|
|
|
$
|
1,465
|
|
|
$
|
1,669,550
|
|
Borrowings
|
139,150
|
|
|
(116
|
)
|
|
139,034
|
|
|||
Other Liabilities
|
8,059
|
|
|
293
|
|
|
8,352
|
|
|||
Total liabilities assumed
|
1,815,294
|
|
|
1,642
|
|
|
1,816,936
|
|
|||
Excess of assets acquired over liabilities assumed
|
$
|
188,341
|
|
|
$
|
9,545
|
|
|
197,886
|
|
|
Consideration paid
|
|
|
|
|
|
|
467,439
|
|
|||
Goodwill recognized
|
|
|
|
|
|
|
$
|
269,553
|
|
|
|
Acquired Loans
|
||||||||||
|
|
Grandpoint
|
|
PLZZ
|
|
HEOP
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Contractual amounts due
|
|
$
|
3,496,905
|
|
|
$
|
1,708,685
|
|
|
$
|
1,717,230
|
|
Cash flows not expected to be collected
|
|
39,071
|
|
|
20,152
|
|
|
4,442
|
|
|||
Expected cash flows
|
|
3,457,834
|
|
|
1,688,533
|
|
|
1,712,788
|
|
|||
Interest component of expected cash flows
|
|
1,105,117
|
|
|
625,632
|
|
|
348,100
|
|
|||
Fair value of acquired loans
|
|
$
|
2,352,717
|
|
|
$
|
1,062,901
|
|
|
$
|
1,364,688
|
|
|
Year Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(dollars in thousands, except per share data)
|
||||||
Net interest and other income
|
$
|
473,748
|
|
|
$
|
465,400
|
|
Net income
|
133,565
|
|
|
96,758
|
|
||
Basic earnings per share
|
2.16
|
|
|
1.58
|
|
||
Diluted earnings per share
|
2.14
|
|
|
1.56
|
|
•
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with United States generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with the authorization of its management and directors; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
|
(1)
|
The following financial statements are incorporated by reference from Item 8 hereof:
|
(2)
|
All schedules for which provision is made in the applicable accounting regulation of the SEC are omitted because they are not applicable or the required information is included in the consolidated financial statements or related notes thereto.
|
(b)
|
The following exhibits are filed with or incorporated by reference in this Annual Report on Form 10-K, and this list includes the Exhibit Index.
|
Exhibit No.
|
Description
|
4.3
|
Long-term borrowing instruments are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. The Company undertakes to furnish copies of such instruments to the SEC upon request.
|
101.INS
|
XBRL Instance Document #
|
101.SCH
|
XBRL Taxonomy Extension Schema Document #
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document #
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document #
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document #
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document #
|
104
|
The cover page of Pacific Premier Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019, formatted in Inline XBRL (contained in Exhibit 101)
|
|
|
(1)
|
Incorporated by reference from the Registrant's Form 8-K filed with the SEC on December 13, 2016.
|
(2)
|
Incorporated by reference from the Registrant's Form 8-K filed with the SEC on August 9, 2017.
|
(3)
|
Incorporated by reference from the Registrant's Form 8-K filed with the SEC on February 12, 2018.
|
(4)
|
Incorporated by reference from the Registrant’s Form 8-K filed with the SEC on May 15, 2018.
|
(5)
|
Incorporated by reference from the Registrant’s Registration Statement on Form S-1 (Registration No. 333-20497) filed with the SEC on January 27, 1997.
|
(6)
|
Incorporated by reference from the Registrant’s Proxy Statement filed with the SEC on April 23, 2004.
|
(7)
|
Incorporated by reference from the Registrant’s Post-Effective Amendment No. 1 to Form S-8 (Registration No. 333-117857) filed with the SEC on September 3, 2004.
|
(8)
|
Incorporated by reference from the Registrant’s Form 8-K filed with the SEC on May 19, 2006.
|
(9)
|
Incorporated by reference from the Registrant’s Form 8-K filed with the SEC on June 4, 2012.
|
(10)
|
Incorporated by reference from the Registrant’s Form 8-K filed with the SEC on June 2, 2017.
|
(11)
|
Incorporated by reference from the Registrant’s Form 8-K filed with the SEC on February 1, 2016.
|
(12)
|
Incorporated by reference from the Registrant's Form 8-K filed with the SEC on June 2, 2016.
|
(13)
|
Incorporated by reference from the Registrant’s Form 8-K filed with the SEC on November 16, 2017.
|
(14)
|
Incorporated by reference from the Registrant’s Form 8-K filed with the SEC on February 6, 2020.
|
|
|
*
|
Management contract or compensatory plan or arrangement.
|
#
|
Attached as Exhibit 101 to this Annual Report on Form 10-K for the period ended December 31, 2019 of Pacific Premier Bancorp., Inc. are the following documents in XBRL (eXtensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of December 31, 2019 and 2018; (ii) Consolidated Statements of Income for the Years Ended December 31, 2019, 2018 and 2017; (iii) Consolidated Statement of Stockholders’ Equity for the Years Ended December 31, 2019, 2018 and 2017; (iv) Other Comprehensive Income for the Years Ended December 31, 2019, 2018 and 2017; (v) Consolidated Statements of Cash Flows for the Years Ended December 31, 2019, 2018 and 2017, and (vi) Notes to Consolidated Financial Statements.
|
|
PACIFIC PREMIER BANCORP, INC.
|
||
|
By:
|
|
/s/ Steven R. Gardner
|
|
|
|
Steven R. Gardner
|
|
|
|
Chairman, President and Chief Executive Officer
|
Signature
|
Title
|
Date
|
|
|
|
/s/ Steven R. Gardner
|
Chairman, President and Chief Executive Officer
(Principal Executive Officer)
|
February 28, 2020
|
Steven R. Gardner
|
|
|
|
|
|
/s/ Ronald J. Nicolas, Jr.
|
Senior Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
February 28, 2020
|
Ronald J. Nicolas, Jr.
|
|
|
|
|
|
/s/ Lori Wright
|
Executive Vice President and Chief Accounting Officer
(Principal Accounting Officer)
|
February 28, 2020
|
Lori Wright
|
|
|
|
|
|
/s/ John J. Carona
|
Director
|
February 28, 2020
|
John J. Carona
|
|
|
|
|
|
/s/ Ayad A. Fargo
|
Director
|
February 28, 2020
|
Ayad A Fargo
|
|
|
|
|
|
/s/ Joseph L. Garrett
|
Director
|
February 28, 2020
|
Joseph L. Garrett
|
|
|
|
|
|
/s/ Jeff C. Jones
|
Director
|
February 28, 2020
|
Jeff C. Jones
|
|
|
|
|
|
/s/ M. Christian Mitchell
|
Director
|
February 28, 2020
|
M. Christian Mitchell
|
|
|
|
|
|
/s/ Michael J. Morris
|
Director
|
February 28, 2020
|
Michael J. Morris
|
|
|
|
|
|
/s/ Barbara S. Polsky
|
Director
|
February 28, 2020
|
Barbara S. Polsky
|
|
|
|
|
|
/s/ Zareh H. Sarrafian
|
Director
|
February 28, 2020
|
Zareh H. Sarrafian
|
|
|
|
|
|
/s/ Jaynie Miller Studenmund
|
Director
|
February 28, 2020
|
Jaynie Miller Studenmund
|
|
|
|
|
|
/s/ Cora M. Tellez
|
Director
|
February 28, 2020
|
Cora M. Tellez
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of Pacific Premier Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
Dated:
|
February 28, 2020
|
|
/s/ Steven R. Gardner
|
|
|
|
|
Steven R. Gardner
|
|
|
|
|
Chairman, President and Chief Executive Officer
|
|
|
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of Pacific Premier Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
Dated:
|
February 28, 2020
|
|
/s/ Ronald J. Nicolas, Jr.
|
|
|
|
|
Ronald J. Nicolas, Jr.
|
|
|
|
|
Senior Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
PACIFIC PREMIER BANCORP, INC.
|
|
|
|
|
|
|
|
/s/ Steven R. Gardner
|
|
|
|
Steven R. Gardner
|
|
|
|
Chairman, President and
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
/s/ Ronald J. Nicolas, Jr.
|
|
|
|
Ronald J. Nicolas, Jr.
|
|
|
|
Senior Executive Vice President and
|
|
|
|
Chief Financial Officer
|