(Mark One) |
|
|
|
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
|
|
California
|
77-0446957
|
|
(State or other jurisdiction of incorporation or organization)
|
(I. R. S. Employer Identification No.)
|
|
445 Pine Avenue, Goleta, California
|
93117
|
|
(Address of principal executive offices)
|
(Zip code)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock, No Par Value
|
CWBC
|
Nasdaq Global Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☑
|
Emerging growth company ☐
|
PART I
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Page
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||
3
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|||
Item 1.
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3
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||
Item 1A.
|
5
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||
Item 1B.
|
12
|
||
Item 2.
|
12
|
||
Item 3.
|
12
|
||
Item 4.
|
12
|
||
PART II
|
|||
Item 5.
|
13
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||
Item 6.
|
15
|
||
Item 7.
|
16
|
||
Item 7A.
|
46
|
||
Item 8.
|
48
|
||
Item 9.
|
92
|
||
Item 9A.
|
92
|
||
Item 9B.
|
92
|
||
PART III
|
|||
Item 10.
|
93
|
||
Item 11.
|
93
|
||
Item 12.
|
93
|
||
Item 13.
|
93
|
||
Item 14.
|
93
|
||
PART IV
|
|||
Item 15.
|
94
|
||
97
|
|||
CERTIFICATIONS
|
|
|
• |
loan delinquencies, problem assets and foreclosures may increase;
|
|
• |
the sale of foreclosed assets may slow;
|
|
• |
demand for our products and services may decline possibly resulting in a decrease in our total loans or assets;
|
|
• |
collateral for loans made could decline in value, exposing us to increased risk in our loans, reducing customers’ borrowing power, and reducing the value of assets and collateral associated with existing loans;
|
|
• |
the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; and
|
|
• |
the amount of our low-cost or non-interest bearing deposits may decrease and the composition of our deposits may be adversely affected.
|
2019 Quarters
|
2018 Quarters
|
|||||||||||||||||||||||||||||||
Fourth
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Second
|
First
|
|||||||||||||||||||||||||
Range of stock prices:
|
||||||||||||||||||||||||||||||||
High
|
$
|
11.86
|
$
|
9.96
|
$
|
10.28
|
$
|
10.65
|
$
|
12.20
|
$
|
12.95
|
$
|
11.95
|
$
|
12.97
|
||||||||||||||||
Low
|
9.78
|
9.60
|
9.54
|
9.77
|
9.44
|
11.75
|
11.05
|
10.45
|
||||||||||||||||||||||||
Cash Dividends Declared:
|
$
|
0.055
|
$
|
0.055
|
$
|
0.055
|
$
|
0.050
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
$
|
0.04
|
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 Number (or
Approximate Dollar
Value) of Shares that
May Yet be Purchased
Under the Plans or
Programs
|
||||||||||||
January 1 – 31
|
1,270
|
$
|
10.10
|
1,270
|
$
|
952,776
|
|||||||||||
February 1 – 28
|
76,326
|
$
|
10.36
|
76,326
|
$
|
1,661,719
|
|||||||||||
March 1 – 31
|
12,164
|
$
|
10.32
|
12,164
|
$
|
1,536,165
|
|||||||||||
April 1 – 30
|
0
|
$
|
0.00
|
0
|
$
|
1,536,165
|
|||||||||||
May 1 – 31
|
0
|
$
|
0.00
|
0
|
$
|
1,536,165
|
|||||||||||
June 1 – 30
|
0
|
$
|
0.00
|
0
|
$
|
1,536,165
|
|||||||||||
July 1 – 31
|
0
|
$
|
0.00
|
0
|
$
|
1,536,165
|
|||||||||||
August 1 – 31
|
5,108
|
$
|
9.62
|
5,108
|
$
|
1,485,969
|
|||||||||||
September 1 – 30
|
5,115
|
$
|
9.77
|
5,115
|
$
|
1,435,784
|
|||||||||||
October 1 – 31
|
0
|
$
|
0.00
|
0
|
$
|
1,435,784
|
|||||||||||
November 1 – 30
|
0
|
$
|
0.00
|
0
|
$
|
1,435,784
|
|||||||||||
December 1 – 31
|
0
|
$
|
0.00
|
0
|
$
|
1,435,784
|
|||||||||||
Total
|
99,983
|
$
|
10.25
|
99,983
|
$
|
1,435,784
|
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
(excluding securities
reflected in column (a))
|
|||||||
(a)
|
(b)
|
(c)
|
||||||||
Plans approved by shareholders
|
731,300
|
$
|
8.74
|
55,100
|
||||||
Plans not approved by shareholders
|
—
|
—
|
—
|
|||||||
Total
|
731,300
|
$
|
8.74
|
55,100
|
Year Ended December 31,
|
||||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||
(in thousands, except ratios and per share amounts)
|
||||||||||||||||||||
Results of Operations:
|
||||||||||||||||||||
Interest income
|
$
|
45,739
|
$
|
42,631
|
$
|
37,391
|
$
|
32,216
|
$
|
30,222
|
||||||||||
Interest expense
|
11,382
|
8,988
|
4,729
|
3,127
|
2,516
|
|||||||||||||||
Net interest income
|
34,357
|
33,643
|
32,662
|
29,089
|
27,706
|
|||||||||||||||
Provision (credit) for loan losses
|
(165
|
)
|
14
|
411
|
(48
|
)
|
(2,274
|
)
|
||||||||||||
Net interest income after provision for loan losses
|
34,522
|
33,629
|
32,251
|
29,137
|
29,980
|
|||||||||||||||
Non-interest income
|
3,607
|
2,628
|
2,757
|
2,253
|
2,309
|
|||||||||||||||
Non-interest expenses
|
26,755
|
26,039
|
24,545
|
22,548
|
27,281
|
|||||||||||||||
Income before income taxes
|
11,374
|
10,218
|
10,463
|
8,842
|
5,008
|
|||||||||||||||
Provision for income taxes
|
3,411
|
2,809
|
5,548
|
3,613
|
2,138
|
|||||||||||||||
Net income
|
7,963
|
7,409
|
4,915
|
5,229
|
2,870
|
|||||||||||||||
Dividends and accretion on preferred stock
|
—
|
—
|
—
|
—
|
445
|
|||||||||||||||
Discount on partial redemption of preferred stock
|
—
|
—
|
—
|
—
|
(129
|
)
|
||||||||||||||
Net income available to common stockholders
|
$
|
7,963
|
$
|
7,409
|
$
|
4,915
|
$
|
5,229
|
$
|
2,554
|
||||||||||
Per Share Data:
|
||||||||||||||||||||
Income per common share - basic
|
$
|
0.94
|
$
|
0.89
|
$
|
0.60
|
$
|
0.64
|
$
|
0.31
|
||||||||||
Income per common share - diluted
|
$
|
0.93
|
$
|
0.88
|
$
|
0.57
|
$
|
0.62
|
$
|
0.30
|
||||||||||
Weighted average shares outstanding - basic
|
8,470
|
8,288
|
8,146
|
8,114
|
8,203
|
|||||||||||||||
Weighted average shares outstanding - diluted
|
8,579
|
8,451
|
8,589
|
8,444
|
8,491
|
|||||||||||||||
Shares outstanding at period end
|
8,472
|
8,533
|
8,193
|
8,096
|
8,206
|
|||||||||||||||
Dividends declared per common share
|
$
|
0.215
|
$
|
0.190
|
$
|
0.155
|
$
|
0.135
|
$
|
0.110
|
||||||||||
Dividend payout ratio
|
22.87
|
%
|
21.35
|
%
|
25.83
|
%
|
21.09
|
%
|
35.48
|
%
|
||||||||||
Book value per common share
|
$
|
9.68
|
$
|
8.92
|
$
|
8.55
|
$
|
8.07
|
$
|
7.55
|
||||||||||
Selected Balance Sheet Data:
|
||||||||||||||||||||
Net loans
|
766,846
|
759,552
|
726,189
|
623,355
|
536,546
|
|||||||||||||||
Allowance for loan losses
|
8,717
|
8,691
|
8,420
|
7,464
|
6,916
|
|||||||||||||||
Total assets
|
913,870
|
877,291
|
833,315
|
710,572
|
621,213
|
|||||||||||||||
Total deposits
|
750,934
|
716,006
|
699,684
|
612,236
|
544,338
|
|||||||||||||||
Total liabilities
|
831,892
|
801,140
|
763,245
|
645,236
|
559,269
|
|||||||||||||||
Total stockholders’ equity
|
81,978
|
76,151
|
70,070
|
65,336
|
61,944
|
|||||||||||||||
Selected Financial and Liquidity Ratios:
|
||||||||||||||||||||
Net interest margin
|
4.06
|
%
|
4.07
|
%
|
4.34
|
%
|
4.60
|
%
|
4.80
|
%
|
||||||||||
Return on average assets
|
0.91
|
%
|
0.88
|
%
|
0.64
|
%
|
0.81
|
%
|
0.49
|
%
|
||||||||||
Return on average stockholders’ equity
|
10.15
|
%
|
10.02
|
%
|
7.16
|
%
|
8.19
|
%
|
4.34
|
%
|
||||||||||
Equity to assets ratio
|
8.97
|
%
|
8.68
|
%
|
8.41
|
%
|
9.19
|
%
|
11.23
|
%
|
||||||||||
Loan to deposit ratio
|
103.30
|
%
|
106.08
|
%
|
104.99
|
%
|
103.04
|
%
|
99.84
|
%
|
||||||||||
Capital Ratios:
|
||||||||||||||||||||
Tier 1 leverage ratio (1)
|
9.33
|
%
|
8.96
|
%
|
8.72
|
%
|
9.64
|
%
|
10.11
|
%
|
||||||||||
Common Equity Tier 1 ratio (1)
|
10.60
|
%
|
10.10
|
%
|
9.96
|
%
|
10.57
|
%
|
12.12
|
%
|
||||||||||
Tier 1 risk-based capital ratio (1)
|
10.60
|
%
|
10.10
|
%
|
9.96
|
%
|
10.57
|
%
|
12.12
|
%
|
||||||||||
Total risk-based capital ratio (1)
|
11.73
|
%
|
11.26
|
%
|
11.17
|
%
|
11.80
|
%
|
13.37
|
%
|
||||||||||
Selected Asset Quality Ratios:
|
||||||||||||||||||||
Net charge-offs (recoveries) to average loans
|
(0.02
|
)%
|
(0.03
|
)%
|
(0.08
|
)%
|
(0.10
|
)%
|
(0.26
|
)%
|
||||||||||
Allowance for loan losses to total loans
|
1.12
|
%
|
1.13
|
%
|
1.15
|
%
|
1.18
|
%
|
1.27
|
%
|
||||||||||
Allowance for loan losses to nonaccrual loans
|
325.38
|
%
|
139.59
|
%
|
123.03
|
%
|
239.46
|
%
|
99.42
|
%
|
||||||||||
Nonaccrual loans to gross loans
|
0.35
|
%
|
0.81
|
%
|
0.93
|
%
|
0.49
|
%
|
1.28
|
%
|
||||||||||
Nonaccrual loans and repossessed assets to total loans
|
0.67
|
%
|
0.81
|
%
|
0.98
|
%
|
0.52
|
%
|
1.32
|
%
|
||||||||||
Loans past due 90 days or more and still accruing interest to total loans
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
(1) |
Effective 2015, CWB was subject to Basel III regulatory capital guidelines. CWBC as a small bank holding company is not subject to the Basel III capital reporting requirements. The 2019, 2018, 2017, 2016 and
2015 ratios were the estimated consolidated capital ratios under Basel III.
|
|
• |
Net income was $8.0 million, or $0.93 per diluted share for the year ended 2019, compared to $7.4 million, or $0.88 per diluted share in 2018.
|
|
• |
Net interest margin of 4.06% at December 31, 2019 compared to 4.07% for the year ended 2018.
|
|
• |
Total deposits were $750.9 million at December 31, 2019 and increased by 4.9% compared to $716.0 million at December 31, 2018.
|
|
• |
Total demand deposits represented 56.6% of total deposits at December 31, 2019 compared to 52.9% at December 31, 2018.
|
|
• |
Book value per common share increased to $9.68 at December 31, 2019, compared to $8.92 at December 31, 2018.
|
|
• |
Provision (credit) for loan losses was ($165,000) for the year, compared to a provision for loan losses of $14,000 for 2018.
|
|
• |
Net recoveries were $0.2 million for the year ended 2019 compared to $0.3 million for 2018.
|
|
• |
Total risk based capital improved to 11.73% at December 31, 2019 from 11.26% at December 31, 2018.
|
|
• |
Net nonaccrual loans improved to $2.4 million at December 31, 2019 compared to $3.4 million at December 31, 2018.
|
|
• |
Other assets acquired through foreclosure, net was $2.5 million at December 31, 2019, compared to zero at December 31, 2018.
|
Year Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands, except per share amounts)
|
||||||||||||
Net income available to common stockholders
|
$
|
7,963
|
$
|
7,409
|
$
|
4,915
|
||||||
Basic earnings per share
|
0.94
|
0.89
|
0.60
|
|||||||||
Diluted earnings per share
|
0.93
|
0.88
|
0.57
|
|||||||||
Total assets
|
913,870
|
877,291
|
833,315
|
|||||||||
Gross loans
|
775,563
|
768,243
|
734,609
|
|||||||||
Total deposits
|
750,934
|
716,006
|
699,684
|
|||||||||
Net interest margin
|
4.06
|
%
|
4.07
|
%
|
4.34
|
%
|
||||||
Return on average assets
|
0.91
|
%
|
0.88
|
%
|
0.64
|
%
|
||||||
Return on average stockholders’ equity
|
10.15
|
%
|
10.02
|
%
|
7.16
|
%
|
||||||
Dividend payout ratio
|
22.87
|
%
|
21.35
|
%
|
25.83
|
%
|
||||||
Equity to assets ratio
|
8.97
|
%
|
8.68
|
%
|
8.41
|
%
|
Year Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Non-accrual loans (net of guaranteed portion)
|
$
|
2,389
|
$
|
3,378
|
$
|
4,472
|
||||||
Non-accrual loans to gross loans
|
0.31
|
%
|
0.44
|
%
|
0.61
|
%
|
||||||
Net charge-offs (recoveries) to average loans
|
(0.02
|
)%
|
(0.03
|
)%
|
(0.08
|
)%
|
Year Ended
December 31,
|
Increase
|
Year Ended
December 31,
|
Increase
|
|||||||||||||||||||||
2019
|
2018
|
(Decrease)
|
2018
|
2017
|
(Decrease)
|
|||||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||||||||||
Consolidated Income Statement Data:
|
||||||||||||||||||||||||
Interest income
|
$
|
45,739
|
$
|
42,631
|
$
|
3,108
|
$
|
42,631
|
$
|
37,391
|
$
|
5,240
|
||||||||||||
Interest expense
|
11,382
|
8,988
|
2,394
|
8,988
|
4,729
|
4,259
|
||||||||||||||||||
Net interest income
|
34,357
|
33,643
|
714
|
33,643
|
32,662
|
981
|
||||||||||||||||||
Provision (credit) for loan losses
|
(165
|
)
|
14
|
(179
|
)
|
14
|
411
|
(397
|
)
|
|||||||||||||||
Net interest income after provision for loan losses
|
34,522
|
33,629
|
893
|
33,629
|
32,251
|
1,378
|
||||||||||||||||||
Non-interest income
|
3,607
|
2,628
|
979
|
2,628
|
2,757
|
(129
|
)
|
|||||||||||||||||
Non-interest expenses
|
26,755
|
26,039
|
716
|
26,039
|
24,545
|
1,494
|
||||||||||||||||||
Income before provision for income taxes
|
11,374
|
10,218
|
1,156
|
10,218
|
10,463
|
(245
|
)
|
|||||||||||||||||
Provision for income taxes
|
3,411
|
2,809
|
602
|
2,809
|
5,548
|
(2,739
|
)
|
|||||||||||||||||
Net income
|
$
|
7,963
|
$
|
7,409
|
$
|
554
|
$
|
7,409
|
$
|
4,915
|
$
|
2,494
|
||||||||||||
Earnings per share - basic
|
$
|
0.94
|
$
|
0.89
|
$
|
0.05
|
$
|
0.89
|
$
|
0.60
|
$
|
0.29
|
||||||||||||
Earnings per share - diluted
|
$
|
0.93
|
$
|
0.88
|
$
|
0.05
|
$
|
0.88
|
$
|
0.57
|
$
|
0.30
|
Year Ended December 31,
|
||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|||||||||||||||||||
Interest-Earning Assets
|
(in thousands)
|
|||||||||||||||||||||||
Federal funds sold and interest-earning deposits
|
$
|
33,587
|
$
|
648
|
1.93
|
%
|
$
|
36,275
|
$
|
641
|
1.77
|
%
|
||||||||||||
Investment securities
|
34,341
|
1,201
|
3.50
|
%
|
38,242
|
1,125
|
2.94
|
%
|
||||||||||||||||
Loans (1)
|
778,745
|
43,890
|
5.64
|
%
|
751,775
|
40,865
|
5.44
|
%
|
||||||||||||||||
Total earnings assets
|
846,673
|
45,739
|
5.40
|
%
|
826,292
|
42,631
|
5.16
|
%
|
||||||||||||||||
Nonearning Assets
|
||||||||||||||||||||||||
Cash and due from banks
|
2,431
|
3,201
|
||||||||||||||||||||||
Allowance for loan losses
|
(8,787
|
)
|
(8,535
|
)
|
||||||||||||||||||||
Other assets
|
32,192
|
21,510
|
||||||||||||||||||||||
Total assets
|
$
|
872,509
|
$
|
842,468
|
||||||||||||||||||||
Interest-Bearing Liabilities
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
289,798
|
3,531
|
1.22
|
%
|
265,974
|
2,100
|
0.79
|
%
|
||||||||||||||||
Savings deposits
|
15,650
|
125
|
0.80
|
%
|
14,458
|
124
|
0.86
|
%
|
||||||||||||||||
Time deposits
|
303,687
|
6,399
|
2.11
|
%
|
322,972
|
5,478
|
1.70
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
609,135
|
10,055
|
1.65
|
%
|
603,404
|
7,702
|
1.28
|
%
|
||||||||||||||||
Other borrowings
|
51,045
|
1,327
|
2.60
|
%
|
46,014
|
1,286
|
2.79
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
660,180
|
11,382
|
1.72
|
%
|
649,418
|
8,988
|
1.38
|
%
|
||||||||||||||||
Noninterest-Bearing Liabilities
|
||||||||||||||||||||||||
Noninterest-bearing demand deposits
|
116,887
|
111,246
|
||||||||||||||||||||||
Other liabilities
|
17,005
|
7,898
|
||||||||||||||||||||||
Stockholders’ equity
|
78,437
|
73,906
|
||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity
|
$
|
872,509
|
$
|
842,468
|
||||||||||||||||||||
Net interest income and margin (2)
|
$
|
34,357
|
4.06
|
%
|
$
|
33,643
|
4.07
|
%
|
||||||||||||||||
Net interest spread (3)
|
3.68
|
%
|
3.78
|
%
|
(1) |
Includes nonaccrual loans.
|
(2) |
Net interest margin is computed by dividing net interest income by total average earning assets.
|
(3) |
Net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
|
Year Ended December 31,
|
||||||||||||||||||||||||
2018
|
2017
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|||||||||||||||||||
Interest-Earning Assets
|
(in thousands)
|
|||||||||||||||||||||||
Federal funds sold and interest-earning deposits
|
$
|
36,275
|
$
|
641
|
1.77
|
%
|
$
|
22,378
|
$
|
204
|
0.91
|
%
|
||||||||||||
Investment securities
|
38,242
|
1,125
|
2.94
|
%
|
40,084
|
995
|
2.48
|
%
|
||||||||||||||||
Loans (1)
|
751,775
|
40,865
|
5.44
|
%
|
690,658
|
36,192
|
5.24
|
%
|
||||||||||||||||
Total earnings assets
|
826,292
|
42,631
|
5.16
|
%
|
753,120
|
37,391
|
4.96
|
%
|
||||||||||||||||
Nonearning Assets
|
||||||||||||||||||||||||
Cash and due from banks
|
3,201
|
2,550
|
||||||||||||||||||||||
Allowance for loan losses
|
(8,535
|
)
|
(7,997
|
)
|
||||||||||||||||||||
Other assets
|
21,510
|
19,161
|
||||||||||||||||||||||
Total assets
|
$
|
842,468
|
$
|
766,834
|
||||||||||||||||||||
Interest-Bearing Liabilities
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
265,974
|
2,100
|
0.79
|
%
|
260,868
|
1,105
|
0.42
|
%
|
||||||||||||||||
Savings deposits
|
14,458
|
124
|
0.86
|
%
|
14,197
|
113
|
0.80
|
%
|
||||||||||||||||
Time deposits
|
322,972
|
5,478
|
1.70
|
%
|
282,224
|
3,065
|
1.09
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
603,404
|
7,702
|
1.28
|
%
|
557,289
|
4,283
|
0.77
|
%
|
||||||||||||||||
Other borrowings
|
46,014
|
1,286
|
2.79
|
%
|
28,114
|
446
|
1.59
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
649,418
|
8,988
|
1.38
|
%
|
585,403
|
4,729
|
0.81
|
%
|
||||||||||||||||
Noninterest-Bearing Liabilities
|
||||||||||||||||||||||||
Noninterest-bearing demand deposits
|
111,246
|
107,589
|
||||||||||||||||||||||
Other liabilities
|
7,898
|
5,158
|
||||||||||||||||||||||
Stockholders’ equity
|
73,906
|
68,684
|
||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity
|
$
|
842,468
|
$
|
766,834
|
||||||||||||||||||||
Net interest income and margin (2)
|
$
|
33,643
|
4.07
|
%
|
$
|
32,662
|
4.34
|
%
|
||||||||||||||||
Net interest spread (3)
|
3.78
|
%
|
4.15
|
%
|
(1) |
Includes nonaccrual loans.
|
(2) |
Net interest margin is computed by dividing net interest income by total average earning assets.
|
(3) |
Net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
|
Year Ended December 31, 2019 versus
2018
|
Year Ended December 31, 2018 versus
2017
|
|||||||||||||||||||||||
Increase (Decrease)
Due to Changes in (1)
|
Increase (Decrease)
Due to Changes in (1)
|
|||||||||||||||||||||||
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
|||||||||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||||||||||
Interest income:
|
||||||||||||||||||||||||
Investment securities
|
$
|
(137
|
)
|
$
|
214
|
$
|
77
|
$
|
(54
|
)
|
$
|
184
|
$
|
130
|
||||||||||
Federal funds sold and other
|
(52
|
)
|
58
|
6
|
245
|
192
|
437
|
|||||||||||||||||
Loans, net
|
1,521
|
1,504
|
3,025
|
3,292
|
1,381
|
4,673
|
||||||||||||||||||
Total interest income
|
1,332
|
1,776
|
3,108
|
3,483
|
1,757
|
5,240
|
||||||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Interest checking
|
291
|
1,140
|
1,431
|
40
|
955
|
995
|
||||||||||||||||||
Savings
|
10
|
(9
|
)
|
1
|
2
|
9
|
11
|
|||||||||||||||||
Time deposits
|
(407
|
)
|
1,328
|
921
|
693
|
1,720
|
2,413
|
|||||||||||||||||
Other borrowings
|
131
|
(90
|
)
|
41
|
499
|
341
|
840
|
|||||||||||||||||
Total interest expense
|
25
|
2,369
|
2,394
|
1,234
|
3,025
|
4,259
|
||||||||||||||||||
Net increase
|
$
|
1,307
|
$
|
(593
|
)
|
$
|
714
|
$
|
2,249
|
$
|
(1,268
|
)
|
$
|
981
|
(1) |
Changes due to both volume and rate have been allocated to volume changes.
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||||
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single
Family
Real
Estate
|
Consumer
|
Total
|
|||||||||||||||||||||||||
2019
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Beginning balance
|
$
|
2,196
|
$
|
5,028
|
$
|
1,210
|
$
|
79
|
$
|
90
|
$
|
88
|
$
|
—
|
$
|
8,691
|
||||||||||||||||
Charge-offs
|
—
|
—
|
(31
|
)
|
—
|
—
|
—
|
—
|
(31
|
)
|
||||||||||||||||||||||
Recoveries
|
54
|
52
|
60
|
50
|
5
|
1
|
—
|
222
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
54
|
52
|
29
|
50
|
5
|
1
|
—
|
191
|
||||||||||||||||||||||||
Provision (credit)
|
(66
|
)
|
137
|
(77
|
)
|
(97
|
)
|
(68
|
)
|
3
|
3
|
(165
|
)
|
|||||||||||||||||||
Ending balance
|
$
|
2,184
|
$
|
5,217
|
$
|
1,162
|
$
|
32
|
$
|
27
|
$
|
92
|
$
|
3
|
$
|
8,717
|
||||||||||||||||
2018
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
2,180
|
$
|
4,844
|
$
|
1,133
|
$
|
73
|
$
|
92
|
$
|
98
|
$
|
—
|
$
|
8,420
|
||||||||||||||||
Charge-offs
|
(6
|
)
|
—
|
(127
|
)
|
—
|
—
|
—
|
—
|
(133
|
)
|
|||||||||||||||||||||
Recoveries
|
120
|
15
|
66
|
133
|
55
|
1
|
—
|
390
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
114
|
15
|
(61
|
)
|
133
|
55
|
1
|
—
|
257
|
|||||||||||||||||||||||
Provision (credit)
|
(98
|
)
|
169
|
138
|
(127
|
)
|
(57
|
)
|
(11
|
)
|
—
|
14
|
||||||||||||||||||||
Ending balance
|
$
|
2,196
|
$
|
5,028
|
$
|
1,210
|
$
|
79
|
$
|
90
|
$
|
88
|
$
|
—
|
$
|
8,691
|
||||||||||||||||
2017
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
2,201
|
$
|
3,707
|
$
|
1,241
|
$
|
106
|
$
|
100
|
$
|
109
|
$
|
—
|
$
|
7,464
|
||||||||||||||||
Charge-offs
|
(119
|
)
|
—
|
—
|
(30
|
)
|
—
|
(54
|
)
|
—
|
(203
|
)
|
||||||||||||||||||||
Recoveries
|
142
|
249
|
161
|
177
|
18
|
1
|
—
|
748
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
23
|
249
|
161
|
147
|
18
|
(53
|
)
|
—
|
545
|
|||||||||||||||||||||||
Provision (credit)
|
(44
|
)
|
888
|
(269
|
)
|
(180
|
)
|
(26
|
)
|
42
|
—
|
411
|
||||||||||||||||||||
Ending balance
|
$
|
2,180
|
$
|
4,844
|
$
|
1,133
|
$
|
73
|
$
|
92
|
$
|
98
|
$
|
—
|
$
|
8,420
|
Year Ended December 31,
|
Increase
|
Year Ended December 31,
|
Increase
|
|||||||||||||||||||||
2019
|
2018
|
(Decrease)
|
2018
|
2017
|
(Decrease)
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Other loan fees
|
$
|
1,383
|
$
|
1,348
|
$
|
35
|
$
|
1,348
|
$
|
1,300
|
$
|
48
|
||||||||||||
Document processing fees
|
423
|
489
|
(66
|
)
|
489
|
558
|
(69
|
)
|
||||||||||||||||
Service charges
|
567
|
459
|
108
|
459
|
458
|
1
|
||||||||||||||||||
Gains from loan sales, net
|
765
|
—
|
765
|
—
|
53
|
(53
|
)
|
|||||||||||||||||
Other
|
469
|
332
|
137
|
332
|
388
|
(56
|
)
|
|||||||||||||||||
Total non-interest income
|
$
|
3,607
|
$
|
2,628
|
$
|
979
|
$
|
2,628
|
$
|
2,757
|
$
|
(129
|
)
|
Year Ended December 31,
|
Increase
|
Year Ended December 31,
|
Increase
|
|||||||||||||||||||||
2019
|
2018
|
(Decrease)
|
2018
|
2017
|
(Decrease)
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Salaries and employee benefits
|
$
|
17,094
|
$
|
16,329
|
$
|
765
|
$
|
16,329
|
$
|
15,339
|
$
|
990
|
||||||||||||
Occupancy expense, net
|
3,088
|
3,132
|
(44
|
)
|
3,132
|
2,862
|
270
|
|||||||||||||||||
Professional services
|
1,679
|
1,356
|
323
|
1,356
|
1,069
|
287
|
||||||||||||||||||
Data processing
|
774
|
685
|
89
|
685
|
750
|
(65
|
)
|
|||||||||||||||||
Depreciation
|
876
|
852
|
24
|
852
|
725
|
127
|
||||||||||||||||||
Advertising and marketing
|
864
|
764
|
100
|
764
|
685
|
79
|
||||||||||||||||||
FDIC assessment
|
427
|
770
|
(343
|
)
|
770
|
664
|
106
|
|||||||||||||||||
Stock based compensation expense
|
382
|
478
|
(96
|
)
|
478
|
537
|
(59
|
)
|
||||||||||||||||
Other
|
1,571
|
1,673
|
(102
|
)
|
1,673
|
1,914
|
(241
|
)
|
||||||||||||||||
Total non-interest expenses
|
$
|
26,755
|
$
|
26,039
|
$
|
716
|
$
|
26,039
|
$
|
24,545
|
$
|
1,494
|
December 31,
|
||||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Manufactured housing
|
$
|
257,247
|
$
|
247,114
|
$
|
223,115
|
$
|
194,222
|
$
|
177,891
|
||||||||||
Commercial real estate
|
385,642
|
365,809
|
354,617
|
272,142
|
179,491
|
|||||||||||||||
Commercial
|
101,485
|
118,518
|
111,459
|
105,290
|
107,510
|
|||||||||||||||
SBA
|
14,833
|
19,148
|
26,341
|
36,659
|
48,071
|
|||||||||||||||
HELOC
|
4,531
|
6,756
|
9,422
|
10,292
|
10,934
|
|||||||||||||||
Single family real estate
|
11,845
|
11,261
|
10,346
|
12,750
|
19,073
|
|||||||||||||||
Consumer
|
94
|
46
|
83
|
87
|
123
|
|||||||||||||||
Total loans
|
775,677
|
768,651
|
735,383
|
631,442
|
543,093
|
|||||||||||||||
Less:
|
||||||||||||||||||||
Allowance for loan losses
|
8,717
|
8,691
|
8,420
|
7,464
|
6,916
|
|||||||||||||||
Deferred fees (costs), net
|
58
|
337
|
652
|
453
|
(560
|
)
|
||||||||||||||
Discount on SBA loans
|
56
|
71
|
122
|
170
|
191
|
|||||||||||||||
Total loans, net
|
$
|
766,846
|
$
|
759,552
|
$
|
726,189
|
$
|
623,355
|
$
|
536,546
|
||||||||||
Percentage to Total Loans:
|
||||||||||||||||||||
Manufactured housing
|
33.2
|
%
|
32.1
|
%
|
30.3
|
%
|
30.8
|
%
|
32.8
|
%
|
||||||||||
Commercial real estate
|
49.7
|
%
|
47.6
|
%
|
48.2
|
%
|
43.1
|
%
|
33.0
|
%
|
||||||||||
Commercial
|
13.1
|
%
|
15.4
|
%
|
15.2
|
%
|
16.7
|
%
|
19.8
|
%
|
||||||||||
SBA
|
1.9
|
%
|
2.5
|
%
|
3.6
|
%
|
5.8
|
%
|
8.9
|
%
|
||||||||||
HELOC
|
0.6
|
%
|
0.9
|
%
|
1.3
|
%
|
1.6
|
%
|
2.0
|
%
|
||||||||||
Single family real estate
|
1.5
|
%
|
1.5
|
%
|
1.4
|
%
|
2.0
|
%
|
3.5
|
%
|
||||||||||
Consumer
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
||||||||||
Total
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
Due in One
Year or Less
|
Due After One
Year to Five Years
|
Due After
Five Years
|
Total
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Manufactured housing
|
||||||||||||||||
Floating rate
|
$
|
6,049
|
$
|
27,613
|
$
|
161,506
|
$
|
195,168
|
||||||||
Fixed rate
|
4,889
|
19,626
|
37,564
|
62,079
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Floating rate
|
49,515
|
47,487
|
211,586
|
308,588
|
||||||||||||
Fixed rate
|
7,937
|
48,679
|
20,438
|
77,054
|
||||||||||||
Commercial
|
||||||||||||||||
Floating rate
|
27,813
|
23,248
|
27,044
|
78,105
|
||||||||||||
Fixed rate
|
9,315
|
13,586
|
479
|
23,380
|
||||||||||||
SBA
|
||||||||||||||||
Floating rate
|
2,699
|
5,135
|
6,998
|
14,832
|
||||||||||||
Fixed rate
|
—
|
—
|
—
|
—
|
||||||||||||
HELOC
|
||||||||||||||||
Floating rate
|
(7
|
)
|
1,603
|
2,936
|
4,532
|
|||||||||||
Fixed rate
|
—
|
—
|
—
|
—
|
||||||||||||
Single family real estate
|
||||||||||||||||
Floating rate
|
344
|
1,682
|
7,931
|
9,957
|
||||||||||||
Fixed rate
|
113
|
537
|
1,237
|
1,887
|
||||||||||||
Consumer
|
||||||||||||||||
Floating rate
|
—
|
—
|
—
|
—
|
||||||||||||
Fixed rate
|
41
|
5
|
49
|
95
|
||||||||||||
Total
|
$
|
108,708
|
$
|
189,201
|
$
|
477,768
|
$
|
775,677
|
Year Ended December 31,
|
||||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Impaired loans without specific valuation allowances
|
$
|
6,172
|
$
|
9,744
|
$
|
12,352
|
$
|
4,463
|
$
|
7,591
|
||||||||||
Impaired loans with specific valuation allowances
|
6,656
|
14,159
|
8,275
|
13,080
|
11,940
|
|||||||||||||||
Specific valuation allowance related to impaired loans
|
(352
|
)
|
(465
|
)
|
(524
|
)
|
(759
|
)
|
(573
|
)
|
||||||||||
Impaired loans, net
|
$
|
12,476
|
$
|
23,438
|
$
|
20,103
|
$
|
16,784
|
$
|
18,958
|
||||||||||
Average investment in impaired loans
|
$
|
18,504
|
$
|
20,731
|
$
|
16,484
|
$
|
17,285
|
$
|
16,302
|
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single
Family
Real
Estate
|
Consumer
|
Total
Loans
|
|||||||||||||||||||||||||
Impaired Loans as of December 31, 2019:
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
5,702
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
470
|
$
|
—
|
$
|
6,172
|
||||||||||||||||
Impaired loans with no allowance recorded
|
2,296
|
318
|
1,802
|
382
|
—
|
1,858
|
—
|
6,656
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
7,998
|
318
|
1,802
|
382
|
—
|
2,328
|
—
|
12,828
|
||||||||||||||||||||||||
Related Allowance for Loan Losses
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
334
|
—
|
—
|
—
|
—
|
18
|
—
|
352
|
||||||||||||||||||||||||
Impaired loans with no allowance recorded
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
334
|
—
|
—
|
—
|
—
|
18
|
—
|
352
|
||||||||||||||||||||||||
Total impaired loans, net
|
$
|
7,664
|
$
|
318
|
$
|
1,802
|
$
|
382
|
$
|
—
|
$
|
2,310
|
$
|
—
|
$
|
12,476
|
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single
Family
Real
Estate
|
Consumer
|
Total
Loans
|
|||||||||||||||||||||||||
Impaired Loans as of December 31, 2018:
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
8,726
|
$
|
243
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
775
|
$
|
—
|
$
|
9,744
|
||||||||||||||||
Impaired loans with no allowance recorded
|
3,269
|
102
|
7,811
|
815
|
198
|
1,964
|
—
|
14,159
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
11,995
|
345
|
7,811
|
815
|
198
|
2,739
|
—
|
23,903
|
||||||||||||||||||||||||
Related Allowance for Loan Losses
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
432
|
9
|
—
|
—
|
—
|
24
|
—
|
465
|
||||||||||||||||||||||||
Impaired loans with no allowance recorded
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
432
|
9
|
—
|
—
|
—
|
24
|
—
|
465
|
||||||||||||||||||||||||
Total impaired loans, net
|
$
|
11,563
|
$
|
336
|
$
|
7,811
|
$
|
815
|
$
|
198
|
$
|
2,715
|
$
|
—
|
$
|
23,438
|
Year Ended December 31,
|
||||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Total nonaccrual loans
|
$
|
2,679
|
$
|
6,226
|
$
|
6,844
|
$
|
3,117
|
$
|
6,956
|
||||||||||
Government guaranteed portion of loans included above
|
(290
|
)
|
(2,848
|
)
|
(2,372
|
)
|
(742
|
)
|
(1,943
|
)
|
||||||||||
Total nonaccrual loans without government guarantees
|
$
|
2,389
|
$
|
3,378
|
$
|
4,472
|
$
|
2,375
|
$
|
5,013
|
||||||||||
TDR loans, gross
|
$
|
10,774
|
$
|
16,749
|
$
|
16,603
|
$
|
14,437
|
$
|
13,741
|
||||||||||
Loans 30 through 89 days past due with interest accruing
|
$
|
1,947
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||
Allowance for loan losses to gross loans held for investment
|
1.19
|
%
|
1.21
|
%
|
1.24
|
%
|
1.31
|
%
|
1.44
|
%
|
||||||||||
Interest income recognized on impaired loans
|
$
|
1,001
|
$
|
1,324
|
$
|
1,142
|
$
|
1,148
|
$
|
933
|
||||||||||
Interest income that would have been recorded under the original terms of nonaccrual loans
|
$
|
512
|
$
|
454
|
$
|
379
|
$
|
412
|
$
|
761
|
At December 31, 2019
|
At December 31, 2018
|
|||||||||||||||||||||||
Nonaccrual
Balance
|
%
|
Percent of
Total Loans
|
Nonaccrual
Balance
|
%
|
Percent of
Total Loans
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Manufactured housing
|
$
|
594
|
22.17
|
%
|
0.08
|
%
|
$
|
229
|
6.11
|
%
|
0.06
|
%
|
||||||||||||
Commercial real estate
|
84
|
3.14
|
%
|
0.01
|
%
|
102
|
4.47
|
%
|
0.04
|
%
|
||||||||||||||
Commercial
|
1,619
|
60.43
|
%
|
0.21
|
%
|
4,881
|
69.93
|
%
|
0.65
|
%
|
||||||||||||||
SBA
|
382
|
14.26
|
%
|
0.05
|
%
|
816
|
13.79
|
%
|
0.13
|
%
|
||||||||||||||
HELOC
|
—
|
0.00
|
%
|
0.00
|
%
|
198
|
3.13
|
%
|
0.03
|
%
|
||||||||||||||
Single family real estate
|
—
|
0.00
|
%
|
0.00
|
%
|
—
|
2.57
|
%
|
0.02
|
%
|
||||||||||||||
Consumer
|
—
|
0.00
|
%
|
0.00
|
%
|
—
|
0.00
|
%
|
0.00
|
%
|
||||||||||||||
Total nonaccrual loans
|
$
|
2,679
|
100.00
|
%
|
0.35
|
%
|
$
|
6,226
|
100.00
|
%
|
0.93
|
%
|
Year Ended December 31,
|
||||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||
Allowance for loan losses:
|
(dollars in thousands)
|
|||||||||||||||||||
Balance at beginning of period
|
$
|
8,691
|
$
|
8,420
|
$
|
7,464
|
$
|
6,916
|
$
|
7,877
|
||||||||||
Provision (credit) charged to operating expenses:
|
||||||||||||||||||||
Manufactured housing
|
(66
|
)
|
(98
|
)
|
(44
|
)
|
(1,329
|
)
|
(415
|
)
|
||||||||||
Commercial real estate
|
137
|
169
|
888
|
1,722
|
(151
|
)
|
||||||||||||||
Commercial
|
(77
|
)
|
138
|
(269
|
)
|
166
|
(469
|
)
|
||||||||||||
SBA
|
(97
|
)
|
(127
|
)
|
(180
|
)
|
(490
|
)
|
(1,069
|
)
|
||||||||||
HELOC
|
(68
|
)
|
(57
|
)
|
(26
|
)
|
(29
|
)
|
(107
|
)
|
||||||||||
Single family real estate
|
3
|
(11
|
)
|
42
|
(87
|
)
|
(63
|
)
|
||||||||||||
Consumer
|
3
|
—
|
—
|
(1
|
)
|
—
|
||||||||||||||
Total provision (credit)
|
(165
|
)
|
14
|
411
|
(48
|
)
|
(2,274
|
)
|
||||||||||||
Recoveries of loans previously charged-off:
|
||||||||||||||||||||
Manufactured housing
|
54
|
120
|
142
|
128
|
205
|
|||||||||||||||
Commercial real estate
|
52
|
15
|
249
|
132
|
545
|
|||||||||||||||
Commercial
|
60
|
66
|
161
|
136
|
422
|
|||||||||||||||
SBA
|
50
|
133
|
177
|
266
|
454
|
|||||||||||||||
HELOC
|
5
|
55
|
18
|
86
|
10
|
|||||||||||||||
Single family real estate
|
1
|
1
|
1
|
93
|
3
|
|||||||||||||||
Consumer
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Total recoveries
|
222
|
390
|
748
|
841
|
1,639
|
|||||||||||||||
Loans charged-off:
|
||||||||||||||||||||
Manufactured housing
|
—
|
6
|
119
|
123
|
297
|
|||||||||||||||
Commercial real estate
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Commercial
|
31
|
127
|
—
|
—
|
—
|
|||||||||||||||
SBA
|
—
|
—
|
30
|
121
|
—
|
|||||||||||||||
HELOC
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Single family real estate
|
—
|
—
|
54
|
—
|
29
|
|||||||||||||||
Consumer
|
—
|
—
|
—
|
1
|
—
|
|||||||||||||||
Total charged-off
|
31
|
133
|
203
|
245
|
326
|
|||||||||||||||
Net charge-offs (recoveries)
|
(191
|
)
|
(257
|
)
|
(545
|
)
|
(596
|
)
|
(1,313
|
)
|
||||||||||
Balance at end of period
|
$
|
8,717
|
$
|
8,691
|
$
|
8,420
|
$
|
7,464
|
$
|
6,916
|
||||||||||
Net charge-offs (recoveries) to average loans outstanding
|
(0.02
|
)%
|
(0.03
|
)%
|
(0.08
|
)%
|
(0.10
|
)%
|
(0.26
|
)%
|
||||||||||
Allowance for loan losses to gross loans including held for sale loans
|
1.12
|
%
|
1.13
|
%
|
1.15
|
%
|
1.18
|
%
|
1.18
|
%
|
December 31,
|
||||||||||||||||||||||||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Amount
|
% of
Loans in
Each
Category
to Gross
Loans
|
Amount
|
% of
Loans in
Each
Category
to Gross
Loans
|
Amount
|
% of
Loans in
Each
Category
to Gross
Loans
|
Amount
|
% of
Loans in
Each
Category
to Gross
Loans
|
Amount
|
% of
Loans in
Each
Category
to Gross
Loans
|
|||||||||||||||||||||||||||||||
Manufactured housing
|
$
|
2,184
|
33.2 |
%
|
$
|
2,196
|
32.1 |
%
|
$
|
2,180
|
30.3 |
%
|
$
|
2,201
|
30.8 |
%
|
$
|
3,525
|
32.8 |
%
|
||||||||||||||||||||
Commercial real estate
|
5,217
|
49.7 |
%
|
5,028
|
47.6 |
%
|
4,844
|
48.2 |
%
|
3,707
|
43.1 |
%
|
1,853
|
33.0 |
%
|
|||||||||||||||||||||||||
Commercial
|
1,162
|
13.1 |
%
|
1,210
|
15.4 |
%
|
1,133
|
15.2 |
%
|
1,241
|
16.7 |
%
|
939
|
19.8 |
%
|
|||||||||||||||||||||||||
SBA
|
32
|
1.9
|
%
|
79
|
2.5 |
%
|
73
|
3.6 |
%
|
106
|
5.8 |
%
|
451
|
8.9 |
%
|
|||||||||||||||||||||||||
HELOC
|
27
|
0.6 |
%
|
90
|
0.9 |
%
|
92
|
1.3 |
%
|
100
|
1.6 |
%
|
43
|
2.0 |
%
|
|||||||||||||||||||||||||
Single family real estate
|
92
|
1.5
|
%
|
88
|
1.5 |
%
|
98
|
1.4 |
%
|
109
|
2.0 |
%
|
103
|
3.5 |
%
|
|||||||||||||||||||||||||
Consumer
|
3
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
2
|
0.0
|
%
|
|||||||||||||||||||||||||
Total
|
$
|
8,717
|
100.0 |
%
|
$
|
8,691
|
100.0
|
%
|
$
|
8,420
|
100.0 |
%
|
$
|
7,464
|
100.0 |
%
|
$
|
6,916
|
100.0 |
%
|
December 31, 2019
|
||||||||||||||||
Number
of Loans
|
Loan
Balance (1)
|
Percent
|
Percent of
Total Loans
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Manufactured housing
|
2
|
$
|
163
|
1.92
|
%
|
0.02
|
%
|
|||||||||
Commercial real estate
|
5
|
5,824
|
68.60
|
%
|
0.75
|
%
|
||||||||||
Commercial
|
2
|
1,699
|
20.01
|
%
|
0.22
|
%
|
||||||||||
SBA
|
5
|
799
|
9.41
|
%
|
0.10
|
%
|
||||||||||
HELOC
|
—
|
—
|
0.00
|
%
|
0.00
|
%
|
||||||||||
Single family real estate
|
1
|
5
|
0.06
|
%
|
0.00
|
%
|
||||||||||
Consumer
|
—
|
—
|
0.00
|
%
|
0.00
|
%
|
||||||||||
Total
|
15
|
$
|
8,490
|
100.00
|
%
|
1.09
|
%
|
(1) |
Loan balance includes $2.1 million guaranteed by government agencies.
|
December 31, 2018
|
||||||||||||||||
Number
of Loans
|
Loan
Balance (1)
|
Percent
|
Percent of
Total Loans
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Manufactured housing
|
—
|
$
|
—
|
0.00
|
%
|
0.00
|
%
|
|||||||||
Commercial real estate
|
4
|
2,435
|
67.88
|
%
|
0.32
|
%
|
||||||||||
Commercial
|
1
|
278
|
7.75
|
%
|
0.04
|
%
|
||||||||||
SBA
|
5
|
869
|
24.23
|
%
|
0.11
|
%
|
||||||||||
HELOC
|
—
|
—
|
0.00
|
%
|
0.00
|
%
|
||||||||||
Single family real estate
|
1
|
5
|
0.14
|
%
|
0.00
|
%
|
||||||||||
Consumer
|
—
|
—
|
0.00
|
%
|
0.00
|
%
|
||||||||||
Total
|
11
|
$
|
3,587
|
100.00
|
%
|
0.47
|
%
|
(1) |
Loan balance includes $1.5 million guaranteed by government agencies.
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
U.S. government agency notes
|
$
|
8,048
|
$
|
12,070
|
$
|
13,978
|
||||||
U.S. government agency mortgage backed securities (“MBS”)
|
6,132
|
7,301
|
7,565
|
|||||||||
U.S. government agency collateralized mortgage obligations (“CMO”)
|
11,216
|
12,861
|
14,649
|
|||||||||
Equity securities: Farmer Mac class A stock
|
167
|
121
|
156
|
|||||||||
$
|
25,563
|
$
|
32,353
|
$
|
36,348
|
December 31, 2019
|
||||||||||||||||||||||||||||||||||||||||
Less than One
Year
|
One to Five
Years
|
Five to Ten
Years
|
Over Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||||||||||||||||||||
Securities available-for-sale
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. government agency notes
|
$
|
—
|
—
|
$
|
1,094
|
2.3
|
%
|
$
|
6,955
|
2.8
|
%
|
$
|
—
|
—
|
$
|
8,049
|
2.8
|
%
|
||||||||||||||||||||||
U.S. government agency CMO
|
—
|
—
|
3,766
|
2.1
|
%
|
6,120
|
2.3
|
%
|
1,329
|
2.4
|
%
|
11,215
|
2.3
|
%
|
||||||||||||||||||||||||||
Total
|
$
|
—
|
—
|
$
|
4,860
|
2.2
|
%
|
$
|
13,075
|
2.6
|
%
|
$
|
1,329
|
2.4
|
%
|
$
|
19,264
|
2.5
|
%
|
|||||||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS
|
$
|
—
|
—
|
$
|
2,465
|
4.2
|
%
|
$
|
2,887
|
2.9
|
%
|
$
|
780
|
3.6
|
%
|
$
|
6,132
|
3.5
|
%
|
|||||||||||||||||||||
Total
|
$
|
—
|
—
|
$
|
2,465
|
4.2
|
%
|
$
|
2,887
|
2.9
|
%
|
$
|
780
|
3.6
|
%
|
$
|
6,132
|
3.5
|
%
|
|||||||||||||||||||||
Securities measured at fair value
|
||||||||||||||||||||||||||||||||||||||||
Farmer Mac class A stock
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
167
|
—
|
|||||||||||||||||||||||||
Total
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
167
|
—
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Balance, beginning of period
|
$
|
—
|
$
|
372
|
$
|
137
|
||||||
Additions
|
3,401
|
174
|
501
|
|||||||||
Proceeds from dispositions
|
(844
|
)
|
(484
|
)
|
(416
|
)
|
||||||
Gains (losses) on sales, net
|
(33
|
)
|
(62
|
)
|
150
|
|||||||
Balance, end of period
|
$
|
2,524
|
$
|
—
|
$
|
372
|
Year Ended December 31,
|
||||||||||||||||||||||||
2019
|
2018
|
2017
|
||||||||||||||||||||||
Average
Balance
|
Percent of
Total
|
Average
Balance
|
Percent of
Total
|
Average
Balance
|
Percent of
Total
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Non-interest bearing demand deposits
|
$
|
116,887
|
16.1
|
%
|
$
|
111,246
|
15.6
|
%
|
$
|
107,589
|
16.2
|
%
|
||||||||||||
Interest-bearing demand deposits
|
289,798
|
39.9
|
%
|
265,974
|
37.2
|
%
|
260,868
|
39.2
|
%
|
|||||||||||||||
Savings
|
15,650
|
2.2
|
%
|
14,458
|
2.0
|
%
|
14,197
|
2.1
|
%
|
|||||||||||||||
Time deposits of $100,000 or more
|
144,711
|
19.9
|
%
|
181,472
|
25.4
|
%
|
200,729
|
30.2
|
%
|
|||||||||||||||
Other time deposits
|
158,976
|
21.9
|
%
|
141,501
|
19.8
|
%
|
81,495
|
12.3
|
%
|
|||||||||||||||
Total deposits
|
$
|
726,022
|
100.0
|
%
|
$
|
714,651
|
100.0
|
%
|
$
|
664,878
|
100.0
|
%
|
December 31,
|
||||||||||||||||
2019
|
2018
|
|||||||||||||||
TCDs Over
$ 100,000
|
Other
TCDs
|
TCDs Over
$ 100,000
|
Other
TCDs
|
|||||||||||||
Less than three months
|
$
|
62,802
|
$
|
12,623
|
$
|
78,935
|
$
|
42,976
|
||||||||
Three to six months
|
70,761
|
46,010
|
50,964
|
50,478
|
||||||||||||
Six to twelve months
|
33,630
|
46,698
|
39,892
|
14,141
|
||||||||||||
Over twelve months
|
21,831
|
15,769
|
39,143
|
6,244
|
||||||||||||
Total TCDs
|
$
|
189,024
|
$
|
121,100
|
$
|
208,934
|
$
|
113,839
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
FHLB Advances
|
(in thousands)
|
|||||||||||
Maximum month-end balance
|
$
|
65,000
|
$
|
75,000
|
$
|
50,000
|
||||||
Balance at year end
|
65,000
|
70,000
|
50,000
|
|||||||||
Average balance
|
49,414
|
40,551
|
24,704
|
|||||||||
Other Borrowings
|
||||||||||||
Maximum month-end balance
|
5,750
|
6,843
|
6,843
|
|||||||||
Balance at year end
|
—
|
5,000
|
6,843
|
|||||||||
Average balance
|
1,631
|
5,463
|
3,410
|
|||||||||
Total borrowed funds
|
$
|
65,000
|
$
|
75,000
|
$
|
56,843
|
||||||
Weighted average interest rate at end of year
|
2.29
|
%
|
2.77
|
%
|
1.87
|
%
|
||||||
Weighted average interest rate during the year
|
2.48
|
%
|
2.41
|
%
|
1.56
|
%
|
Total Capital
(To Risk-
Weighted
Assets)
|
Tier 1 Capital
(To Risk-
Weighted
Assets)
|
Common Equity Tier 1
(To Risk-
Weighted
Assets)
|
Leverage
Ratio/Tier 1
Capital
(To Average
Assets)
|
|||||||||||||
December 31, 2019
|
||||||||||||||||
CWB’s actual regulatory ratios
|
11.41
|
%
|
10.28
|
%
|
10.28
|
%
|
9.06
|
%
|
||||||||
Minimum capital requirements
|
8.00
|
%
|
6.00
|
%
|
4.50
|
%
|
4.00
|
%
|
||||||||
Well-capitalized requirements
|
10.00
|
%
|
8.00
|
%
|
6.50
|
%
|
N/A
|
|||||||||
Minimum capital requirements including fully-phased in capital conservation buffer
|
10.50
|
%
|
8.50
|
%
|
7.00
|
%
|
N/A
|
|||||||||
December 31, 2018
|
||||||||||||||||
CWB’s actual regulatory ratios
|
10.83
|
%
|
9.68
|
%
|
9.68
|
%
|
8.57
|
%
|
||||||||
Minimum capital requirements
|
8.00
|
%
|
6.00
|
%
|
4.50
|
%
|
4.00
|
%
|
||||||||
Well-capitalized requirements
|
10.00
|
%
|
8.00
|
%
|
6.50
|
%
|
5.00
|
%
|
||||||||
Minimum capital requirements including fully-phased in capital conservation buffer
|
10.50
|
%
|
8.50
|
%
|
7.00
|
%
|
N/A
|
Payments Due by Period
|
||||||||||||||||||||
Total
|
Less Than 1
Year
|
1 to 3
Years
|
3 to 5
Years
|
After 5
Years
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Time deposit maturities
|
$
|
310,124
|
$
|
272,257
|
$
|
33,403
|
$
|
4,464
|
$
|
—
|
||||||||||
FHLB advances
|
65,000
|
50,000
|
15,000
|
—
|
—
|
|||||||||||||||
Other borrowings
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Purchase obligations
|
8,495
|
3,571
|
2,907
|
2,017
|
—
|
|||||||||||||||
Operating lease obligations
|
7,216
|
1,361
|
2,253
|
1,807
|
1,795
|
|||||||||||||||
Total
|
$
|
390,835
|
$
|
327,189
|
$
|
53,563
|
$
|
8,288
|
$
|
1,795
|
Amount of Commitment By Period of Expiration
|
||||||||||||||||||||
Total
Commitments
|
Less Than 1
Year
|
1 to 3
Years
|
3 to 5
Years
|
After 5
Years
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Commitments to extend credit
|
$
|
67,538
|
$
|
37,470
|
$
|
21,907
|
$
|
5,216
|
$
|
2,945
|
||||||||||
Standby letters of credit
|
655
|
51
|
604
|
—
|
—
|
|||||||||||||||
Total
|
$
|
68,193
|
$
|
37,521
|
$
|
22,511
|
$
|
5,216
|
$
|
2,945
|
|
• |
the customer must obtain or provide some additional credit, property or services from or to CWB other than a loan, discount, deposit or trust services;
|
|
• |
the customer must obtain or provide some additional credit, property or service from or to CWBC or any subsidiaries; or
|
|
• |
the customer must not obtain some other credit, property or services from competitors, except reasonable requirements to assure soundness of credit extended.
|
|
• |
assets (exclusive of goodwill and other intangible assets) would be 1.25 times its liabilities (exclusive of deferred taxes, deferred income and other deferred credits); and
|
|
• |
current assets would be at least equal to current liabilities.
|
Adequately
Capitalized
|
Well
Capitalized
|
Capital
Conservation
Buffer Fully
Phased-In
|
CWB
|
CWBC
(consolidated)
|
||||||||||||||||
Total risk-based capital
|
8.00
|
%
|
10.00
|
%
|
10.50
|
%
|
11.41
|
%
|
11.73
|
%
|
||||||||||
Tier 1 risk-based capital ratio
|
6.00
|
%
|
8.00
|
%
|
8.50
|
%
|
10.28
|
%
|
10.60
|
%
|
||||||||||
Common Equity Tier 1
|
4.50
|
%
|
6.50
|
%
|
7.00
|
%
|
10.28
|
%
|
10.60
|
%
|
||||||||||
Tier 1 leverage capital ratio
|
4.00
|
%
|
N/A
|
N/A
|
9.06
|
%
|
9.33
|
%
|
|
• |
“well capitalized” if it has a total risk-based capital ratio of 10% or more, has a Tier 1 risk-based capital ratio of 6% or more, has a leverage capital ratio of 5% or more and is not subject to specified
requirements to meet and maintain a specific capital level for any capital measure;
|
|
• |
“adequately capitalized” if it has a total risk-based capital ratio of 8% or more, a Tier 1 risk-based capital ratio of 4% or more and a leverage capital ratio of 4% or more (3% under certain circumstances) and
does not meet the definition of “well capitalized”;
|
|
• |
“undercapitalized” if it has a total risk-based capital ratio that is less than 8%, a Tier 1 risk-based capital ratio that is less than 4%, or a leverage capital ratio that is less than 4% (3% under certain
circumstances)
|
|
• |
“significantly undercapitalized” if it has a total risk-based capital ratio that is less than 6%, a Tier 1 risk-based capital ratio that is less than 3% or a leverage capital ratio that is less than 3%; and
|
|
• |
“critically undercapitalized” if it has a ratio of tangible equity to total assets that is equal to or less than 2%
|
Sensitivity of Net Interest Income
|
||||||||||||||||||||||||||||
Interest Rate Scenario (change in basis point from Base)
|
||||||||||||||||||||||||||||
Down 100
|
Base
|
Up 100
|
Up 200
|
Up 300
|
Up 400
|
Up 500
|
||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||
Interest income
|
$
|
42,602
|
$
|
45,015
|
$
|
47,538
|
$
|
50,328
|
$
|
53,176
|
$
|
55,978
|
$
|
58,673
|
||||||||||||||
Interest expense
|
7,549
|
10,267
|
14,159
|
18,039
|
21,903
|
25,767
|
29,632
|
|||||||||||||||||||||
Net interest income
|
$
|
35,053
|
$
|
34,748
|
$
|
33,379
|
$
|
32,289
|
$
|
31,273
|
$
|
30,211
|
$
|
29,042
|
||||||||||||||
% change
|
0.9
|
%
|
(3.9
|
)%
|
(7.1
|
)%
|
(10.0
|
)%
|
(13.1
|
)%
|
(16.4
|
)%
|
Sensitivity of Net Interest Income
|
||||||||||||||||||||||||||||
Interest Rate Scenario (change in basis point from Base)
|
||||||||||||||||||||||||||||
Down 100
|
Base
|
Up 100
|
Up 200
|
Up 300
|
Up 400
|
Up 500
|
||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||
Interest income
|
$
|
42,761
|
$
|
45,290
|
$
|
48,039
|
$
|
50,797
|
$
|
53,571
|
$
|
56,210
|
$
|
58,826
|
||||||||||||||
Interest expense
|
9,280
|
12,258
|
16,154
|
19,981
|
23,808
|
27,636
|
31,463
|
|||||||||||||||||||||
Net interest income
|
$
|
33,481
|
$
|
33,032
|
$
|
31,885
|
$
|
30,816
|
$
|
29,762
|
$
|
28,575
|
$
|
27,363
|
||||||||||||||
% change
|
1.4
|
%
|
(3.5
|
)%
|
(6.7
|
)%
|
(9.9
|
)%
|
(13.5
|
)%
|
(17.2
|
)%
|
Economic Value of Equity
|
||||||||||||||||||||||||||||
As of December 31, 2019
|
||||||||||||||||||||||||||||
Interest Rate Scenario (change in basis point from Base)
|
||||||||||||||||||||||||||||
Down 100
|
Base
|
Up 100
|
Up 200
|
Up 300
|
Up 400
|
Up 500
|
||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||
Assets
|
$
|
933,368
|
$
|
908,364
|
$
|
888,642
|
$
|
870,519
|
$
|
853,961
|
$
|
837,636
|
$
|
819,847
|
||||||||||||||
Liabilities
|
853,908
|
836,330
|
824,925
|
814,210
|
804,128
|
794,629
|
785,667
|
|||||||||||||||||||||
Net present value
|
$
|
79,460
|
$
|
72,034
|
$
|
63,716
|
$
|
56,309
|
$
|
49,832
|
$
|
43,007
|
$
|
34,180
|
||||||||||||||
% change
|
10.3
|
%
|
(11.5
|
)%
|
(21.8
|
)%
|
(30.8
|
)%
|
(40.3
|
)%
|
(52.6
|
)%
|
Economic Value of Equity
|
||||||||||||||||||||||||||||
As of December 31, 2018
|
||||||||||||||||||||||||||||
Interest Rate Scenario (change in basis point from Base)
|
||||||||||||||||||||||||||||
Down 100
|
Base
|
Up 100
|
Up 200
|
Up 300
|
Up 400
|
Up 500
|
||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||
Assets
|
$
|
878,269
|
$
|
858,280
|
$
|
841,547
|
$
|
824,377
|
$
|
808,434
|
$
|
792,496
|
$
|
774,020
|
||||||||||||||
Liabilities
|
790,702
|
776,998
|
768,730
|
760,927
|
753,552
|
746,571
|
739,954
|
|||||||||||||||||||||
Net present value
|
$
|
87,567
|
$
|
81,282
|
$
|
72,817
|
$
|
63,450
|
$
|
54,882
|
$
|
45,925
|
$
|
34,067
|
||||||||||||||
% change
|
7.7
|
%
|
(10.4
|
)%
|
(21.9
|
)%
|
(32.5
|
)%
|
(43.5
|
)%
|
(58.1
|
)%
|
PAGE
|
|
Report of Independent Registered Public Accounting Firm
|
48
|
Consolidated Financial Statements
|
49 |
Consolidated Balance Sheets
|
50
|
Consolidated Income Statements
|
51
|
Consolidated Statements of Comprehensive Income
|
52
|
Consolidated Statements of Stockholders’ Equity
|
53
|
Consolidated Statements of Cash Flows
|
54
|
Notes to Consolidated Financial Statements
|
55
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands, except share amounts)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
2,536
|
$
|
2,975
|
||||
Federal funds sold
|
3
|
8
|
||||||
Interest-earning demand in other financial institutions
|
80,122
|
53,932
|
||||||
Cash and cash equivalents
|
82,661
|
56,915
|
||||||
Investment securities - available-for-sale, at fair value; amortized cost of $19,382 at December 31, 2019 and $25,156 at December 31, 2018
|
19,264
|
24,931
|
||||||
Investment securities - held-to-maturity, at amortized cost; fair value of $6,302 at December 31, 2019 and $7,269 at December 31, 2018
|
6,132
|
7,301
|
||||||
Investment securities - measured at fair value
|
167
|
121
|
||||||
Federal Home Loan Bank stock, at cost
|
2,714
|
2,714
|
||||||
Federal Reserve Bank stock, at cost
|
1,373
|
1,373
|
||||||
Loans:
|
||||||||
Held for sale, at lower of cost or fair value
|
42,046
|
48,355
|
||||||
Held for investment, net of allowance for loan losses of $8,717 at December 31, 2019 and $8,691 at December 31, 2018
|
724,800
|
711,197
|
||||||
Total loans
|
766,846
|
759,552
|
||||||
Other assets acquired through foreclosure, net
|
2,524
|
-
|
||||||
Premises and equipment, net
|
7,655
|
6,381
|
||||||
Other assets
|
24,534
|
18,003
|
||||||
Total assets
|
$
|
913,870
|
$
|
877,291
|
||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Non-interest-bearing demand
|
$
|
110,843
|
$
|
108,161
|
||||
Interest-bearing demand
|
314,278
|
270,431
|
||||||
Savings
|
15,689
|
14,641
|
||||||
Certificates of deposit ($250,000 or more)
|
96,431
|
93,439
|
||||||
Other certificates of deposit
|
213,693
|
229,334
|
||||||
Total deposits
|
750,934
|
716,006
|
||||||
Other borrowings
|
65,000
|
75,000
|
||||||
Other liabilities
|
15,958
|
10,134
|
||||||
Total liabilities
|
831,892
|
801,140
|
||||||
Stockholders’ equity:
|
||||||||
Common stock — no par value, 60,000,000 shares authorized; 8,472,463 shares issued and outstanding at December 31, 2019 and 8,533,346 at December 31, 2018
|
42,586
|
42,964
|
||||||
Retained earnings
|
39,470
|
33,328
|
||||||
Accumulated other comprehensive (loss)
|
(78
|
)
|
(141
|
)
|
||||
Total stockholders’ equity
|
81,978
|
76,151
|
||||||
Total liabilities and stockholders’ equity
|
$
|
913,870
|
$
|
877,291
|
Year Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Interest income:
|
(in thousands, except per share amounts)
|
|||||||||||
Loans, including fees
|
$
|
43,890
|
$
|
40,865
|
$
|
36,192
|
||||||
Investment securities and other
|
1,849
|
1,766
|
1,199
|
|||||||||
Total interest income
|
45,739
|
42,631
|
37,391
|
|||||||||
Interest expense:
|
||||||||||||
Deposits
|
10,055
|
7,702
|
4,283
|
|||||||||
Other borrowings
|
1,327
|
1,286
|
446
|
|||||||||
Total interest expense
|
11,382
|
8,988
|
4,729
|
|||||||||
Net interest income
|
34,357
|
33,643
|
32,662
|
|||||||||
Provision (credit) for loan losses
|
(165
|
)
|
14
|
411
|
||||||||
Net interest income after provision for loan losses
|
34,522
|
33,629
|
32,251
|
|||||||||
Non-interest income:
|
||||||||||||
Other loan fees
|
1,383
|
1,348
|
1,300
|
|||||||||
Gains from loan sales, net
|
765
|
—
|
53
|
|||||||||
Service charges
|
567
|
459
|
458
|
|||||||||
Document processing fees
|
423
|
489
|
558
|
|||||||||
Other
|
469
|
332
|
388
|
|||||||||
Total non-interest income
|
3,607
|
2,628
|
2,757
|
|||||||||
Non-interest expenses:
|
||||||||||||
Salaries and employee benefits
|
17,094
|
16,329
|
15,339
|
|||||||||
Occupancy, net
|
3,088
|
3,132
|
2,862
|
|||||||||
Professional services
|
1,679
|
1,356
|
1,069
|
|||||||||
Advertising and marketing
|
774
|
685
|
750
|
|||||||||
Data processing
|
876
|
852
|
725
|
|||||||||
Depreciation
|
864
|
764
|
685
|
|||||||||
FDIC assessment
|
427
|
770
|
664
|
|||||||||
Stock based compensation
|
382
|
478
|
537
|
|||||||||
Other
|
1,571
|
1,673
|
1,914
|
|||||||||
Total non-interest expenses
|
26,755
|
26,039
|
24,545
|
|||||||||
Income before provision for income taxes
|
11,374
|
10,218
|
10,463
|
|||||||||
Provision for income taxes
|
3,411
|
2,809
|
5,548
|
|||||||||
Net income
|
$
|
7,963
|
$
|
7,409
|
$
|
4,915
|
||||||
Earnings per share:
|
||||||||||||
Basic
|
$
|
0.94
|
$
|
0.89
|
$
|
0.60
|
||||||
Diluted
|
$
|
0.93
|
$
|
0.88
|
$
|
0.57
|
||||||
Weighted average number of common shares outstanding:
|
||||||||||||
Basic
|
8,470
|
8,288
|
8,146
|
|||||||||
Diluted
|
8,579
|
8,451
|
8,589
|
|||||||||
Dividends declared per common share
|
$
|
0.215
|
$
|
0.190
|
$
|
0.155
|
Year Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Net income
|
$
|
7,963
|
$
|
7,409
|
$
|
4,915
|
||||||
Other comprehensive income (loss), net:
|
||||||||||||
Unrealized income (loss) on securities available-for-sale (AFS), net (tax effect of ($44), $70, ($32) for each respective period presented)
|
63
|
(107
|
)
|
54
|
||||||||
Net other comprehensive income (loss)
|
63
|
(107
|
)
|
54
|
||||||||
Comprehensive income
|
$
|
8,026
|
$
|
7,302
|
$
|
4,969
|
Preferred Stock
|
Common Stock
|
Accumulated
Other
Comprehensive
|
Retained
|
Total
Stockholders’
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Income (Loss)
|
Earnings
|
Equity
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Balance, December 31, 2016:
|
—
|
$
|
—
|
8,096
|
$
|
41,575
|
$
|
(29
|
)
|
$
|
23,790
|
$
|
65,336
|
|||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
4,915
|
4,915
|
|||||||||||||||||||||
Exercise of stock options
|
—
|
—
|
97
|
492
|
—
|
—
|
492
|
|||||||||||||||||||||
Stock based compensation
|
—
|
—
|
—
|
537
|
—
|
—
|
537
|
|||||||||||||||||||||
Common stock repurchase
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Dividends on common stock
|
—
|
—
|
—
|
—
|
—
|
(1,264
|
)
|
(1,264
|
)
|
|||||||||||||||||||
Other comprehensive loss, net
|
—
|
—
|
—
|
—
|
54
|
—
|
54
|
|||||||||||||||||||||
Balance, December 31, 2017:
|
—
|
—
|
8,193
|
42,604
|
25
|
27,441
|
70,070
|
|||||||||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
7,409
|
7,409
|
|||||||||||||||||||||
Exercise of stock options
|
—
|
—
|
102
|
551
|
—
|
—
|
551
|
|||||||||||||||||||||
Stock based compensation
|
—
|
—
|
—
|
478
|
—
|
—
|
478
|
|||||||||||||||||||||
Common stock repurchase
|
—
|
—
|
(63
|
)
|
(669
|
)
|
—
|
—
|
(669
|
)
|
||||||||||||||||||
Dividends on common stock
|
—
|
—
|
—
|
—
|
—
|
(1,581
|
)
|
(1,581
|
)
|
|||||||||||||||||||
Other comprehensive income, net
|
—
|
—
|
—
|
—
|
(107
|
)
|
—
|
(107
|
)
|
|||||||||||||||||||
Impact of ASU 2016-01 and 2018-02 as of January 1, 2018
|
—
|
—
|
—
|
—
|
(59
|
)
|
59
|
—
|
||||||||||||||||||||
Conversion of common stock warrants
|
—
|
—
|
301
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Balance, December 31, 2018:
|
—
|
—
|
8,533
|
42,964
|
(141
|
)
|
33,328
|
76,151
|
||||||||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
7,963
|
7,963
|
|||||||||||||||||||||
Exercise of stock options
|
—
|
—
|
39
|
270
|
—
|
—
|
270
|
|||||||||||||||||||||
Stock based compensation
|
—
|
—
|
—
|
382
|
—
|
—
|
382
|
|||||||||||||||||||||
Common stock repurchase
|
—
|
—
|
(100
|
)
|
(1,030
|
)
|
—
|
—
|
(1,030
|
)
|
||||||||||||||||||
Dividends on common stock
|
—
|
—
|
—
|
—
|
—
|
(1,821
|
)
|
(1,821
|
)
|
|||||||||||||||||||
Other comprehensive income, net
|
—
|
—
|
—
|
—
|
63
|
—
|
63
|
|||||||||||||||||||||
Balance, December 31, 2019:
|
—
|
—
|
8,472
|
42,586
|
(78
|
)
|
39,470
|
81,978
|
Year Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
7,963
|
$
|
7,409
|
$
|
4,915
|
||||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||||||
Provision (credit) for loan losses
|
(165
|
)
|
14
|
411
|
||||||||
Depreciation
|
864
|
764
|
685
|
|||||||||
Stock-based compensation
|
382
|
478
|
537
|
|||||||||
Deferred income taxes
|
(328
|
)
|
(529
|
)
|
528
|
|||||||
Net amortization of discounts and premiums for investment securities (Gains) losses on:
|
107
|
100
|
80
|
|||||||||
Sale of repossessed assets, net
|
33
|
62
|
(150
|
)
|
||||||||
Sale of loans, net
|
(765 |
)
|
—
|
(53
|
)
|
|||||||
Sale of assets, net
|
7
|
—
|
—
|
|||||||||
Loans originated for sale and principal collections, net
|
6,309
|
6,739
|
6,375
|
|||||||||
Changes in:
|
||||||||||||
Other assets
|
1,641
|
(2,210
|
)
|
(1,882
|
)
|
|||||||
Other liabilities
|
(1,366
|
)
|
3,416
|
2,719
|
||||||||
Servicing assets, net
|
(745
|
)
|
78
|
78
|
||||||||
Net cash provided by operating activities
|
13,937
|
16,321
|
14,243
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Principal pay downs and maturities of available-for-sale securities
|
5,686
|
3,436
|
3,256
|
|||||||||
Purchase of available-for-sale securities
|
—
|
—
|
(9,413
|
)
|
||||||||
Principal pay downs and maturities of held-to-maturity securities
|
1,151
|
1,040
|
1,413
|
|||||||||
Purchases of held-to-maturity securities
|
—
|
(794
|
)
|
—
|
||||||||
Loan originations and principal collections, net
|
(16,074
|
)
|
(40,290
|
)
|
(110,069
|
)
|
||||||
Purchase of bank owned life insurance
|
—
|
—
|
—
|
|||||||||
Purchase of restricted stock, net
|
—
|
(367
|
)
|
(277
|
)
|
|||||||
Net increase in interest-bearing deposits in other financial institutions
|
—
|
—
|
—
|
|||||||||
Purchase of premises and equipment, net
|
(2,145
|
)
|
(1,564
|
)
|
(2,335
|
)
|
||||||
Proceeds from sale of other real estate owned and repossessed assets, net
|
844
|
484
|
416
|
|||||||||
Net cash used in investing activities
|
(10,538
|
)
|
(38,055
|
)
|
(117,009
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Net increase in deposits
|
34,928
|
16,322
|
87,448
|
|||||||||
Net (decrease) increase in borrowings
|
(10,000
|
)
|
18,157
|
27,843
|
||||||||
Exercise of stock options
|
270
|
551
|
492
|
|||||||||
Cash dividends paid on common stock
|
(1,821
|
)
|
(1,581
|
)
|
(1,264
|
)
|
||||||
Common stock repurchase
|
(1,030
|
)
|
(669
|
)
|
—
|
|||||||
Net cash provided by financing activities
|
22,347
|
32,780
|
114,519
|
|||||||||
Net increase in cash and cash equivalents
|
25,746
|
11,046
|
11,753
|
|||||||||
Cash and cash equivalents at beginning of year
|
56,915
|
45,869
|
34,116
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
82,661
|
$
|
56,915
|
$
|
45,869
|
||||||
Supplemental disclosure:
|
||||||||||||
Cash paid during the period for:
|
||||||||||||
Interest
|
$
|
11,675
|
$
|
8,321
|
$
|
4,357
|
||||||
Income taxes
|
2,526
|
3,360
|
4,830
|
|||||||||
Non-cash investing and financing activity:
|
||||||||||||
Transfers to other assets acquired through foreclosure, net
|
3,401
|
174
|
501
|
|||||||||
Operating lease right-of-use asset
|
7,190
|
—
|
—
|
|||||||||
Operating lease liability
|
6,316
|
—
|
—
|
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
• |
Commercial Real Estate, Commercial, Commercial Agriculture, SBA, HELOC, Single Family Residential, and Consumer – Migration analysis combined with risk rating is used to determine the required ALL for all
non-impaired loans. In addition, the migration results are adjusted based upon qualitative factors that affect the specific portfolio category. Reserves on impaired loans are determined based upon the individual characteristics of the
loan.
|
|
• |
Manufactured Housing – The ALL is calculated on the basis of loss history and risk rating, which is primarily a function of delinquency. In addition, the loss results are adjusted based upon qualitative
factors that affect this specific portfolio.
|
|
• |
The expected future cash flows are estimated and then discounted at the effective interest rate.
|
|
• |
The value of the underlying collateral net of selling costs. Selling costs are estimated based on industry standards, the Company’s actual experience or actual costs incurred as appropriate. When evaluating
real estate collateral, the Company typically uses appraisals or valuations, no more than twelve months old at time of evaluation. When evaluating non-real estate collateral securing the loan, the Company will use audited financial
statements or appraisals no more than twelve months old at time of evaluation. Additionally, for both real estate and non-real estate collateral, the Company may use other sources to determine value as deemed appropriate.
|
|
• |
The loan’s observable market price.
|
|
• |
Concentrations of credit
|
|
• |
International risk
|
|
• |
Trends in volume, maturity, and composition of loans
|
|
• |
Volume and trend in delinquency, nonaccrual, and classified assets
|
|
• |
Economic conditions
|
|
• |
Geographic distance
|
|
• |
Policy and procedures or underwriting standards
|
|
• |
Staff experience and ability
|
|
• |
Value of underlying collateral
|
|
• |
Competition, legal, or regulatory environment
|
|
• |
Quality of loan review and Board oversight
|
Years
|
|
Building and improvements
|
31.5
|
Furniture and equipment
|
5 – 10
|
Electronic equipment and software
|
3 – 5
|
|
• |
Level 1— Observable quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
|
|
• |
Level 2— Observable quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, matrix pricing or model-based valuation
techniques where all significant assumptions are observable, either directly or indirectly in the market.
|
|
• |
Level 3— Model-based techniques where all significant assumptions are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect management’s estimates of assumptions
that market participants would use in pricing the asset or liability. Valuation techniques may include use of discounted cash flow models and similar techniques.
|
2. |
INVESTMENT SECURITIES
|
December 31, 2019
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Fair
Value
|
|||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||
U.S. government agency notes
|
$
|
8,112
|
$
|
—
|
$
|
(64
|
)
|
$
|
8,048
|
|||||||
U.S. government agency collateralized mortgage obligations (“CMO”)
|
11,270
|
23
|
(77
|
)
|
11,216
|
|||||||||||
Total
|
$
|
19,382
|
$
|
23
|
$
|
(141
|
)
|
$
|
19,264
|
|||||||
Securities held-to-maturity
|
||||||||||||||||
U.S. government agency mortgage backed securities (“MBS”)
|
$
|
6,132
|
$
|
189
|
$
|
(19
|
)
|
$
|
6,302
|
|||||||
Total
|
$
|
6,132
|
$
|
189
|
$
|
(19
|
)
|
$
|
6,302
|
|||||||
Securities measured at fair value
|
||||||||||||||||
Equity securities: Farmer Mac class A stock
|
$
|
66
|
$
|
101
|
$
|
—
|
$
|
167
|
||||||||
Total
|
$
|
66
|
$
|
101
|
$
|
—
|
$
|
167
|
December 31, 2018
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Fair
Value
|
|||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||
U.S. government agency notes
|
$
|
12,225
|
$
|
—
|
$
|
(155
|
)
|
$
|
12,070
|
|||||||
U.S. government agency collateralized mortgage obligations (“CMO”)
|
12,931
|
9
|
(79
|
)
|
12,861
|
|||||||||||
Total
|
25,156
|
9
|
(234
|
)
|
24,931
|
|||||||||||
Securities held-to-maturity
|
||||||||||||||||
U.S. government agency mortgage backed securities (“MBS”)
|
$
|
7,301
|
$
|
118
|
$
|
(150
|
)
|
$
|
7,269
|
|||||||
Total
|
$
|
7,301
|
$
|
118
|
$
|
(150
|
)
|
$
|
7,269
|
|||||||
Securities measured at fair value
|
||||||||||||||||
Equity securities: Farmer Mac class A stock
|
$
|
66
|
$
|
55
|
$
|
—
|
$
|
121
|
||||||||
Total
|
$
|
66
|
$
|
55
|
$
|
—
|
$
|
121
|
December 31, 2019
|
||||||||||||||||||||||||||||||||||||||||
Less than One
Year
|
One to Five
Years
|
Five to Ten
Years
|
Over Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||||||||||||||||||||
Securities available-for-sale
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. government agency notes
|
$
|
—
|
—
|
$
|
1,094
|
2.3
|
%
|
$
|
6,955
|
2.8
|
%
|
$
|
—
|
—
|
$
|
8,049
|
2.8
|
%
|
||||||||||||||||||||||
U.S. government agency CMO
|
—
|
—
|
3,766
|
2.1
|
%
|
6,120
|
2.3
|
%
|
1,329
|
2.4
|
%
|
11,215
|
2.3
|
%
|
||||||||||||||||||||||||||
Total
|
$
|
—
|
—
|
$
|
4,860
|
2.2
|
%
|
$
|
13,075
|
2.6
|
%
|
$
|
1,329
|
2.4
|
%
|
$
|
19,264
|
2.5
|
%
|
|||||||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS
|
$
|
—
|
—
|
$
|
2,465
|
4.2
|
%
|
$
|
2,887
|
2.9
|
%
|
$
|
780
|
3.6
|
%
|
$
|
6,132
|
3.5
|
%
|
|||||||||||||||||||||
Total
|
$
|
—
|
—
|
$
|
2,465
|
4.2
|
%
|
$
|
2,887
|
2.9
|
%
|
$
|
780
|
3.6
|
%
|
$
|
6,132
|
3.5
|
%
|
|||||||||||||||||||||
Securities measured at fair value
|
||||||||||||||||||||||||||||||||||||||||
Farmer Mac class A stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
167
|
—
|
||||||||||||||||||||||||||||||
Total
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
167
|
—
|
December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||
Less than One
Year
|
One to Five
Years
|
Five to Ten
Years
|
Over Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||||||||||||||||||||
Securities available-for-sale
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. government agency notes
|
$
|
1,946
|
2.6
|
%
|
$
|
1,388
|
2.6
|
%
|
$
|
8,736
|
3.1
|
%
|
$
|
—
|
—
|
$
|
12,070
|
2.0
|
%
|
|||||||||||||||||||||
U.S. government agency CMO
|
—
|
—
|
2,717
|
2.5
|
%
|
7,284
|
2.8
|
%
|
2,860
|
3.2
|
%
|
12,861
|
1.9
|
%
|
||||||||||||||||||||||||||
Total
|
$
|
1,946
|
2.6
|
%
|
$
|
4,105
|
2.5
|
%
|
$
|
16,020
|
3.0
|
%
|
$
|
2,860
|
3.2
|
%
|
$
|
24,931
|
2.0
|
%
|
||||||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS
|
$
|
—
|
—
|
$
|
2,058
|
4.7
|
%
|
$
|
4,449
|
3.2
|
%
|
$
|
794
|
3.6
|
%
|
$
|
7,301
|
3.3
|
%
|
|||||||||||||||||||||
Total
|
$
|
—
|
—
|
$
|
2,058
|
4.7
|
%
|
$
|
4,449
|
3.2
|
%
|
$
|
794
|
3.6
|
%
|
$
|
7,301
|
3.3
|
%
|
|||||||||||||||||||||
Securities measured at fair value
|
||||||||||||||||||||||||||||||||||||||||
Farmer Mac class A stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
121
|
—
|
||||||||||||||||||||||||||||||
Total
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
121
|
—
|
December 31,
|
||||||||||||||||
2019
|
2018
|
|||||||||||||||
Amortized
Cost
|
Estimated
Fair Value
|
Amortized
Cost
|
Estimated
Fair Value
|
|||||||||||||
Securities available for sale
|
(in thousands)
|
|||||||||||||||
Due in one year or less
|
$
|
—
|
$
|
—
|
$
|
1,998
|
$
|
1,946
|
||||||||
After one year through five years
|
4,884
|
4,860
|
4,138
|
4,105
|
||||||||||||
After five years through ten years
|
13,121
|
13,075
|
16,107
|
16,020
|
||||||||||||
After ten years
|
1,377
|
1,329
|
2,913
|
2,860
|
||||||||||||
Farmer Mac class A stock
|
—
|
—
|
—
|
—
|
||||||||||||
Total
|
$
|
19,382
|
$
|
19,264
|
$
|
25,156
|
$
|
24,931
|
||||||||
Securities held to maturity
|
||||||||||||||||
Due in one year or less
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
After one year through five years
|
2,465
|
2,565
|
2,058
|
2,153
|
||||||||||||
After five years through ten years
|
2,887
|
2,892
|
4,449
|
4,323
|
||||||||||||
After ten years
|
780
|
845
|
794
|
793
|
||||||||||||
Total
|
$
|
6,132
|
$
|
6,302
|
$
|
7,301
|
$
|
7,269
|
||||||||
Securities measured at fair value
|
||||||||||||||||
Farmer Mac class A stock
|
$
|
66
|
$
|
167
|
$
|
66
|
$
|
121
|
||||||||
Total
|
$
|
66
|
$
|
167
|
$
|
66
|
$
|
121
|
December 31, 2019
|
||||||||||||||||||||||||
Less Than Twelve
Months
|
More Than Twelve
Months
|
Total
|
||||||||||||||||||||||
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||||||||||
U.S. government agency notes
|
$
|
3
|
$
|
1,126
|
$
|
61
|
$
|
6,922
|
$
|
64
|
$
|
8,048
|
||||||||||||
U.S. government agency CMO
|
25
|
5,275
|
52
|
2,264
|
77
|
7,539
|
||||||||||||||||||
Total
|
$
|
28
|
$
|
6,401
|
$
|
113
|
$
|
9,186
|
$
|
141
|
$
|
15,587
|
||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||
U.S. Government-agency MBS
|
$
|
—
|
$
|
—
|
$
|
19
|
$
|
2,139
|
$
|
19
|
$
|
2,139
|
||||||||||||
Total
|
$
|
—
|
$
|
—
|
$
|
19
|
$
|
2,139
|
$
|
19
|
$
|
2,139
|
||||||||||||
Securities measured at fair value
|
||||||||||||||||||||||||
Equity securities: Farmer Mac class A stock
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Total
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
December 31, 2018
|
||||||||||||||||||||||||
Less Than Twelve
Months
|
More Than Twelve
Months
|
Total
|
||||||||||||||||||||||
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||||||||||
U.S. government agency notes
|
$
|
21
|
$
|
4,001
|
$
|
134
|
$
|
8,070
|
$
|
155
|
$
|
12,071
|
||||||||||||
U.S. government agency CMO
|
2
|
4,749
|
77
|
3,289
|
79
|
8,038
|
||||||||||||||||||
Total
|
$
|
23
|
$
|
8,750
|
$
|
211
|
$
|
11,359
|
$
|
234
|
$
|
20,109
|
||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||
U.S. Government-agency MBS
|
$
|
10
|
$
|
1,706
|
$
|
140
|
$
|
2,094
|
$
|
150
|
$
|
3,800
|
||||||||||||
Total
|
$
|
10
|
$
|
1,706
|
$
|
140
|
$
|
2,094
|
$
|
150
|
$
|
3,800
|
||||||||||||
Securities measured at fair value
|
||||||||||||||||||||||||
Equity securities: Farmer Mac class A stock
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Total
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
3. |
LOANS HELD FOR SALE
|
4. |
LOANS HELD FOR INVESTMENT
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Manufactured housing
|
$
|
257,247
|
$
|
247,114
|
||||
Commercial real estate
|
385,642
|
365,809
|
||||||
Commercial
|
69,843
|
83,753
|
||||||
SBA
|
4,429
|
5,557
|
||||||
HELOC
|
4,531
|
6,756
|
||||||
Single family real estate
|
11,845
|
11,261
|
||||||
Consumer
|
94
|
46
|
||||||
733,631
|
720,296
|
|||||||
Allowance for loan losses
|
(8,717
|
)
|
(8,691
|
)
|
||||
Deferred fees, net
|
(58
|
)
|
(337
|
)
|
||||
Discount on SBA loans
|
(56
|
)
|
(71
|
)
|
||||
Total loans held for investment, net
|
$
|
724,800
|
$
|
711,197
|
December 31, 2019
|
||||||||||||||||||||||||||||||||
Current
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
Over 90
Days
Past Due
|
Total
Past Due
|
Nonaccrual
|
Total
|
Recorded
Investment
Over 90
Days
and
Accruing
|
|||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||
Manufactured housing
|
$
|
256,251
|
$
|
156
|
$
|
246
|
$
|
—
|
$
|
402
|
$
|
594
|
$
|
257,247
|
$
|
—
|
||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Commercial real estate
|
327,255
|
—
|
—
|
—
|
—
|
84
|
327,339
|
—
|
||||||||||||||||||||||||
SBA 504 1st trust deed
|
17,151
|
1,401
|
—
|
—
|
1,401
|
—
|
18,552
|
—
|
||||||||||||||||||||||||
Land
|
4,457
|
—
|
—
|
—
|
—
|
—
|
4,457
|
—
|
||||||||||||||||||||||||
Construction
|
35,294
|
—
|
—
|
—
|
—
|
—
|
35,294
|
—
|
||||||||||||||||||||||||
Commercial
|
68,224
|
—
|
—
|
—
|
—
|
1,619
|
69,843
|
—
|
||||||||||||||||||||||||
SBA
|
3,935
|
112
|
—
|
—
|
112
|
382
|
4,429
|
—
|
||||||||||||||||||||||||
HELOC
|
4,531
|
—
|
—
|
—
|
—
|
—
|
4,531
|
—
|
||||||||||||||||||||||||
Single family real estate
|
11,813
|
32
|
—
|
—
|
32
|
—
|
11,845
|
—
|
||||||||||||||||||||||||
Consumer
|
94
|
—
|
—
|
—
|
—
|
—
|
94
|
—
|
||||||||||||||||||||||||
Total
|
$
|
729,005
|
$
|
1,701
|
$
|
246
|
$
|
—
|
$
|
1,947
|
$
|
2,679
|
$
|
733,631
|
$
|
—
|
December 31, 2018
|
||||||||||||||||||||||||||||||||
Current
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
Over 90
Days
Past Due
|
Total
Past Due
|
Nonaccrual
|
Total
|
Recorded
Investment
Over 90
Days
and
Accruing
|
|||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||
Manufactured housing
|
$
|
246,456
|
$
|
285
|
$
|
144
|
$
|
—
|
$
|
429
|
$
|
229
|
$
|
247,114
|
$
|
—
|
||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Commercial real estate
|
267,377
|
2,478
|
—
|
—
|
2,478
|
102
|
269,957
|
—
|
||||||||||||||||||||||||
SBA 504 1st trust deed
|
20,835
|
—
|
322
|
—
|
322
|
—
|
21,157
|
—
|
||||||||||||||||||||||||
Land
|
6,381
|
—
|
—
|
—
|
—
|
—
|
6,381
|
—
|
||||||||||||||||||||||||
Construction
|
67,835
|
479
|
—
|
—
|
479
|
—
|
68,314
|
—
|
||||||||||||||||||||||||
Commercial
|
78,857
|
15
|
—
|
—
|
15
|
4,881
|
83,753
|
—
|
||||||||||||||||||||||||
SBA
|
4,741
|
—
|
—
|
—
|
—
|
816
|
5,557
|
—
|
||||||||||||||||||||||||
HELOC
|
6,558
|
—
|
—
|
—
|
—
|
198
|
6,756
|
—
|
||||||||||||||||||||||||
Single family real estate
|
11,221
|
16
|
—
|
24
|
40
|
—
|
11,261
|
—
|
||||||||||||||||||||||||
Consumer
|
46
|
—
|
—
|
—
|
—
|
—
|
46
|
—
|
||||||||||||||||||||||||
Total
|
$
|
710,307
|
$
|
3,273
|
$
|
466
|
$
|
24
|
$
|
3,763
|
$
|
6,226
|
$
|
720,296
|
$
|
—
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Beginning balance
|
$
|
8,691
|
$
|
8,420
|
$
|
7,464
|
||||||
Charge-offs
|
(31
|
)
|
(133
|
)
|
(203
|
)
|
||||||
Recoveries
|
222
|
390
|
748
|
|||||||||
Net recoveries
|
191
|
257
|
545
|
|||||||||
Provision (credit)
|
(165
|
)
|
14
|
411
|
||||||||
Ending balance
|
$
|
8,717
|
$
|
8,691
|
$
|
8,420
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||||
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single
Family
Real
Estate
|
Consumer
|
Total
|
|||||||||||||||||||||||||
2019
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Beginning balance
|
$
|
2,196
|
$
|
5,028
|
$
|
1,210
|
$
|
79
|
$
|
90
|
$
|
88
|
$
|
—
|
$
|
8,691
|
||||||||||||||||
Charge-offs
|
—
|
—
|
(31
|
)
|
—
|
—
|
—
|
—
|
(31
|
)
|
||||||||||||||||||||||
Recoveries
|
54
|
52
|
60
|
50
|
5
|
1
|
—
|
222
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
54
|
52
|
29
|
50
|
5
|
1
|
—
|
191
|
||||||||||||||||||||||||
Provision (credit)
|
(66
|
)
|
137
|
(77
|
)
|
(97
|
)
|
(68
|
)
|
3
|
3
|
(165
|
)
|
|||||||||||||||||||
Ending balance
|
$
|
2,184
|
$
|
5,217
|
$
|
1,162
|
$
|
32
|
$
|
27
|
$
|
92
|
$
|
3
|
$
|
8,717
|
||||||||||||||||
2018
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
2,180
|
$
|
4,844
|
$
|
1,133
|
$
|
73
|
$
|
92
|
$
|
98
|
$
|
—
|
$
|
8,420
|
||||||||||||||||
Charge-offs
|
(6
|
)
|
—
|
(127
|
)
|
—
|
—
|
—
|
—
|
(133
|
)
|
|||||||||||||||||||||
Recoveries
|
120
|
15
|
66
|
133
|
55
|
1
|
—
|
390
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
114
|
15
|
(61
|
)
|
133
|
55
|
1
|
—
|
257
|
|||||||||||||||||||||||
Provision (credit)
|
(98
|
)
|
169
|
138
|
(127
|
)
|
(57
|
)
|
(11
|
)
|
—
|
14
|
||||||||||||||||||||
Ending balance
|
$
|
2,196
|
$
|
5,028
|
$
|
1,210
|
$
|
79
|
$
|
90
|
$
|
88
|
$
|
—
|
$
|
8,691
|
||||||||||||||||
2017
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
2,201
|
$
|
3,707
|
$
|
1,241
|
$
|
106
|
$
|
100
|
$
|
109
|
$
|
—
|
$
|
7,464
|
||||||||||||||||
Charge-offs
|
(119
|
)
|
—
|
—
|
(30
|
)
|
—
|
(54
|
)
|
—
|
(203
|
)
|
||||||||||||||||||||
Recoveries
|
142
|
249
|
161
|
177
|
18
|
1
|
—
|
748
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
23
|
249
|
161
|
147
|
18
|
(53
|
)
|
—
|
545
|
|||||||||||||||||||||||
Provision (credit)
|
(44
|
)
|
888
|
(269
|
)
|
(180
|
)
|
(26
|
)
|
42
|
—
|
411
|
||||||||||||||||||||
Ending balance
|
$
|
2,180
|
$
|
4,844
|
$
|
1,133
|
$
|
73
|
$
|
92
|
$
|
98
|
$
|
—
|
$
|
8,420
|
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single
Family
Real
Estate
|
Consumer
|
Total
Loans
|
|||||||||||||||||||||||||
Loans Held for Investment as of December 31, 2019:
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
5,702
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
470
|
$
|
—
|
$
|
6,172
|
||||||||||||||||
Impaired loans with no allowance recorded
|
2,296
|
318
|
1,802
|
382
|
—
|
1,858
|
—
|
6,656
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
7,998
|
318
|
1,802
|
382
|
—
|
2,328
|
—
|
12,828
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
249,249
|
385,324
|
68,041
|
4,047
|
4,531
|
9,517
|
94
|
720,803
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
257,247
|
$
|
385,642
|
$
|
69,843
|
$
|
4,429
|
$
|
4,531
|
$
|
11,845
|
$
|
94
|
$
|
733,631
|
||||||||||||||||
Unpaid Principal Balance
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
5,702
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
470
|
$
|
—
|
$
|
6,172
|
||||||||||||||||
Impaired loans with no allowance recorded
|
3,134
|
384
|
2,156
|
736
|
—
|
1,858
|
—
|
8,268
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
8,836
|
384
|
2,156
|
736
|
—
|
2,328
|
—
|
14,440
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
249,249
|
385,324
|
68,041
|
4,046
|
4,531
|
9,517
|
95
|
720,803
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
258,085
|
$
|
385,708
|
$
|
70,197
|
$
|
4,782
|
$
|
4,531
|
$
|
11,845
|
$
|
95
|
$
|
735,243
|
||||||||||||||||
Related Allowance for Loan Losses
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
334
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
18
|
$
|
—
|
$
|
352
|
||||||||||||||||
Impaired loans with no allowance recorded
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
334
|
—
|
—
|
—
|
—
|
18
|
—
|
352
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
1,850
|
5,217
|
1,162
|
32
|
27 | 74 |
3
|
8,365
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
2,184
|
$
|
5,217
|
$
|
1,162
|
$
|
32
|
$
|
27
|
$
|
92 |
$
|
3
|
$
|
8,717
|
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single
Family
Real
Estate
|
Consumer
|
Total
Loans
|
|||||||||||||||||||||||||
Loans Held for Investment as of December 31, 2018:
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
8,726
|
$
|
243
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
775
|
$
|
—
|
$
|
9,744
|
||||||||||||||||
Impaired loans with no allowance recorded
|
3,269
|
102
|
7,811
|
815
|
198
|
1,964
|
—
|
14,159
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
11,995
|
345
|
7,811
|
815
|
198
|
2,739
|
—
|
23,903
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
235,119
|
365,464
|
75,942
|
4,742
|
6,558
|
8,522
|
46
|
696,393
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
247,114
|
$
|
365,809
|
$
|
83,753
|
$
|
5,557
|
$
|
6,756
|
$
|
11,261
|
$
|
46
|
$
|
720,296
|
||||||||||||||||
Unpaid Principal Balance
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
8,726
|
$
|
243
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
775
|
$
|
—
|
$
|
9,744
|
||||||||||||||||
Impaired loans with no allowance recorded
|
4,321
|
160
|
8,078
|
1,211
|
249
|
1,963
|
—
|
15,982
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
13,047
|
403
|
8,078
|
1,211
|
249
|
2,738
|
—
|
25,726
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
235,119
|
365,464
|
75,942
|
4,742
|
6,558
|
8,522
|
46
|
696,393
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
248,166
|
$
|
365,867
|
$
|
84,020
|
$
|
5,953
|
$
|
6,807
|
$
|
11,260
|
$
|
46
|
$
|
722,119
|
||||||||||||||||
Related Allowance for Loan Losses
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
432
|
$
|
9
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
24
|
$
|
—
|
$
|
465
|
||||||||||||||||
Impaired loans with no allowance recorded
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
432
|
9
|
—
|
—
|
—
|
24
|
—
|
465
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
1,764
|
5,019
|
1,210
|
79
|
90
|
64
|
—
|
8,226
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
2,196
|
$
|
5,028
|
$
|
1,210
|
$
|
79
|
$
|
90
|
$
|
88
|
$
|
—
|
$
|
8,691
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Impaired loans with a specific valuation allowance under ASC 310
|
$
|
6,172
|
$
|
9,744
|
||||
Impaired loans without a specific valuation allowance under ASC 310
|
6,656
|
14,159
|
||||||
Total impaired loans
|
$
|
12,828
|
$
|
23,903
|
||||
Valuation allowance related to impaired loans
|
$
|
352
|
$
|
465
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Manufactured housing
|
$
|
7,998
|
$
|
11,995
|
||||
Commercial real estate :
|
||||||||
Commercial real estate
|
84
|
102
|
||||||
SBA 504 1st trust deed
|
234
|
243
|
||||||
Land
|
—
|
—
|
||||||
Construction
|
—
|
—
|
||||||
Commercial
|
1,802
|
7,811
|
||||||
SBA
|
382
|
815
|
||||||
HELOC
|
—
|
198
|
||||||
Single family real estate
|
2,328
|
2,739
|
||||||
Consumer
|
—
|
—
|
||||||
Total
|
$
|
12,828
|
$
|
23,903
|
2019
|
2018
|
2017
|
||||||||||||||||||||||
Average
Investment
in Impaired
Loans
|
Interest
Income
|
Average
Investment
in Impaired
Loans
|
Interest
Income
|
Average
Investment
in Impaired
Loans
|
Interest
Income
|
|||||||||||||||||||
Manufactured housing
|
$
|
9,171
|
$
|
640
|
$
|
8,709
|
$
|
887
|
$
|
7,616
|
$
|
659
|
||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Commercial real estate
|
104
|
—
|
108
|
—
|
121
|
1
|
||||||||||||||||||
SBA 504 1st
|
190
|
27
|
341
|
19
|
502
|
19
|
||||||||||||||||||
Land
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Construction
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Commercial
|
5,491
|
164
|
7,520
|
245
|
5,176
|
339
|
||||||||||||||||||
SBA
|
970
|
32
|
874
|
18
|
797
|
21
|
||||||||||||||||||
HELOC
|
127
|
11
|
199
|
11
|
259
|
—
|
||||||||||||||||||
Single family real estate
|
2,451
|
127
|
2,298
|
144
|
2,013
|
103
|
||||||||||||||||||
Consumer
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Total
|
$
|
18,504
|
$
|
1,001
|
$
|
20,049
|
$
|
1,324
|
$
|
16,484
|
$
|
1,142
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Nonaccrual loans
|
$
|
2,679
|
$
|
6,226
|
$
|
6,844
|
||||||
SBA guaranteed portion of loans included above
|
$
|
290
|
$
|
2,848
|
$
|
2,372
|
||||||
Troubled debt restructured loans, gross
|
$
|
10,774
|
$
|
16,749
|
$
|
16,603
|
||||||
Loans 30 through 89 days past due with interest accruing
|
$
|
1,947
|
$
|
—
|
$
|
—
|
||||||
Interest income recognized on impaired loans
|
$
|
1,001
|
$
|
1,324
|
$
|
1,142
|
||||||
Foregone interest on nonaccrual and troubled debt restructured loans
|
$
|
512
|
$
|
454
|
$
|
379
|
||||||
Allowance for loan losses to gross loans held for investment
|
1.19
|
%
|
1.21
|
%
|
1.24
|
%
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Manufactured housing
|
$
|
594
|
$
|
229
|
||||
Commercial real estate:
|
||||||||
Commercial real estate
|
84
|
102
|
||||||
SBA 504 1st trust deed
|
—
|
—
|
||||||
Land
|
—
|
—
|
||||||
Construction
|
—
|
—
|
||||||
Commercial
|
1,619
|
4,881
|
||||||
SBA
|
382
|
816
|
||||||
HELOC
|
—
|
198
|
||||||
Single family real estate
|
—
|
—
|
||||||
Consumer
|
—
|
—
|
||||||
Total
|
$
|
2,679
|
$
|
6,226
|
December 31, 2019
|
||||||||||||||||||||
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Manufactured housing
|
$
|
256,430
|
$
|
—
|
$
|
817
|
$
|
—
|
$
|
257,247
|
||||||||||
Commercial real estate:
|
||||||||||||||||||||
Commercial real estate
|
323,748
|
3,507
|
84
|
—
|
327,339
|
|||||||||||||||
SBA 504 1st trust deed
|
18,250
|
—
|
302
|
—
|
18,552
|
|||||||||||||||
Land
|
4,457
|
—
|
—
|
—
|
4,457
|
|||||||||||||||
Construction
|
33,280
|
—
|
2,014
|
—
|
35,294
|
|||||||||||||||
Commercial
|
66,525
|
170
|
1,619
|
—
|
68,314
|
|||||||||||||||
SBA
|
2,379
|
28
|
1,154
|
3,561
|
||||||||||||||||
HELOC
|
4,531
|
—
|
—
|
—
|
4,531
|
|||||||||||||||
Single family real estate
|
11,840
|
—
|
5
|
—
|
11,845
|
|||||||||||||||
Consumer
|
94 |
—
|
—
|
—
|
94
|
|||||||||||||||
Total, net
|
$
|
721,534
|
$
|
3,705
|
$
|
5,995
|
$
|
—
|
$
|
731,234
|
||||||||||
Government guarantee
|
—
|
1,530
|
867
|
—
|
2,397
|
|||||||||||||||
Total
|
$
|
721,534
|
$
|
5,235
|
$
|
6,862
|
$
|
—
|
$
|
733,631
|
December 31, 2018
|
||||||||||||||||||||
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Manufactured housing
|
$
|
246,884
|
$
|
—
|
$
|
230
|
$
|
—
|
$
|
247,114
|
||||||||||
Commercial real estate:
|
||||||||||||||||||||
Commercial real estate
|
269,855
|
—
|
102
|
—
|
269,957
|
|||||||||||||||
SBA 504 1st trust deed
|
20,109
|
—
|
1,048
|
—
|
21,157
|
|||||||||||||||
Land
|
6,381
|
—
|
—
|
—
|
6,381
|
|||||||||||||||
Construction
|
66,683
|
1,631
|
—
|
—
|
68,314
|
|||||||||||||||
Commercial
|
73,580
|
—
|
7,771
|
—
|
81,351
|
|||||||||||||||
SBA
|
2,770
|
34
|
1,557
|
—
|
4,361
|
|||||||||||||||
HELOC
|
6,558
|
—
|
198
|
—
|
6,756
|
|||||||||||||||
Single family real estate
|
11,256
|
—
|
5
|
—
|
11,261
|
|||||||||||||||
Consumer
|
46
|
—
|
—
|
—
|
46
|
|||||||||||||||
Total, net
|
$
|
704,122
|
$
|
1,665
|
$
|
10,911
|
$
|
—
|
$
|
716,698
|
||||||||||
Government guarantee
|
—
|
—
|
3,598
|
—
|
3,598
|
|||||||||||||||
Total
|
$
|
704,122
|
$
|
1,665
|
$
|
14,509
|
$
|
—
|
$
|
720,296
|
For the Year Ended December 31, 2019
|
||||||||||||||||||||||||
Number
of Loans
|
Pre-
Modification
Recorded
Investment
|
Post
Modification
Recorded
Investment
|
Balance of
Loans with
Rate
Reduction
|
Balance of
Loans with
Term
Extension
|
Effect on
Allowance
for
Loan
Losses
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Manufactured housing
|
1
|
$
|
25
|
$
|
25
|
$
|
25
|
$
|
25
|
$
|
2
|
|||||||||||||
Commercial
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
SBA
|
1
|
48
|
48
|
48
|
—
|
—
|
||||||||||||||||||
Total
|
2
|
$
|
73
|
$
|
73
|
$
|
73
|
$
|
25
|
$
|
2
|
For the Year Ended December 31, 2018
|
||||||||||||||||||||||||
Number
of Loans
|
Pre-
Modification
Recorded
Investment
|
Post
Modification
Recorded
Investment
|
Balance of
Loans with
Rate
Reduction
|
Balance of
Loans with
Term
Extension
|
Effect on
Allowance
for
Loan
Losses
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Manufactured housing
|
12
|
$
|
1,047
|
$
|
1,213
|
$
|
1,100
|
$
|
1,213
|
$
|
66
|
|||||||||||||
Commercial
|
3
|
1,780
|
1,780
|
—
|
1,780
|
—
|
||||||||||||||||||
SBA
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
HELOC
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Single family real estate
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Total
|
15
|
$
|
2,827
|
$
|
2,993
|
$
|
1,100
|
$
|
2,993
|
$
|
66
|
For the Year Ended December 31, 2017
|
||||||||||||||||||||||||
Number
of Loans
|
Pre-
Modification
Recorded
Investment
|
Post
Modification
Recorded
Investment
|
Balance of
Loans with
Rate
Reduction
|
Balance of
Loans with
Term
Extension
|
Effect on
Allowance
for
Loan
Losses
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Manufactured housing
|
11
|
$
|
894
|
$
|
894
|
$
|
894
|
$
|
894
|
$
|
48
|
|||||||||||||
Commercial real estate
|
3
|
3,052
|
3,052
|
-
|
3,052
|
41
|
||||||||||||||||||
SBA
|
2
|
298
|
298
|
—
|
298
|
1
|
||||||||||||||||||
HELOC
|
-
|
-
|
-
|
-
|
-
|
—
|
||||||||||||||||||
Single family real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
16
|
$
|
4,244
|
$
|
4,244
|
$
|
894
|
$
|
4,244
|
$
|
90
|
Year Ended December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Balance, beginning
|
$
|
3,505
|
$
|
3,505
|
||||
New loans
|
—
|
160
|
||||||
Repayments and other
|
(343
|
)
|
(160
|
)
|
||||
Balance, ending
|
$
|
3,162
|
$
|
3,505
|
5. |
PREMISES AND EQUIPMENT
|
Year Ended December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Bank premises and land
|
$
|
3,959
|
$
|
1,355
|
||||
Furniture, fixtures and equipment
|
11,077
|
10,956
|
||||||
Leasehold improvements
|
5,106
|
5,747
|
||||||
Construction in progress
|
7
|
5
|
||||||
20,149
|
18,063
|
|||||||
Accumulated depreciation
|
(12,494
|
)
|
(11,682
|
)
|
||||
Premises and equipment, net
|
$
|
7,655
|
$
|
6,381
|
(in thousands)
|
||||
2020
|
$
|
1,015
|
||
2021
|
884
|
|||
2022
|
779
|
|||
2023
|
705
|
|||
2024
|
713
|
|||
Thereafter
|
3,291
|
|||
Total
|
$
|
7,387
|
6. |
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Balance, beginning of period
|
$
|
—
|
$
|
372
|
$
|
137
|
||||||
Additions
|
3,401
|
174
|
501
|
|||||||||
Proceeds from dispositions
|
(844
|
)
|
(484
|
)
|
(416
|
)
|
||||||
Gains (losses) on sales, net
|
(33
|
)
|
(62
|
)
|
150
|
|||||||
Balance, end of period
|
$
|
2,524
|
$
|
—
|
$
|
372
|
7. |
INCOME TAXES
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Current:
|
(in thousands)
|
|||||||||||
Federal
|
$
|
2,402
|
$
|
2,130
|
$
|
3,722
|
||||||
State
|
1,337
|
1,208
|
1,298
|
|||||||||
3,739
|
3,338
|
5,020
|
||||||||||
Deferred:
|
||||||||||||
Federal
|
(242
|
)
|
(421
|
)
|
701
|
|||||||
State
|
(86
|
)
|
(108
|
)
|
(173
|
)
|
||||||
(328
|
)
|
(529
|
)
|
528
|
||||||||
Total provision for income taxes
|
$
|
3,411
|
$
|
2,809
|
$
|
5,548
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Federal income tax at statutory rate
|
21.0
|
%
|
21.0
|
%
|
34.0
|
%
|
||||||
State franchise tax, net of federal benefit
|
8.6
|
%
|
8.6
|
%
|
7.2
|
%
|
||||||
Other
|
0.4
|
%
|
(2.1
|
)%
|
(0.4
|
)%
|
||||||
Tax law change
|
0.0
|
%
|
0.0
|
%
|
12.2
|
%
|
||||||
Total provision for income taxes
|
30.0
|
%
|
27.5
|
%
|
53.0
|
%
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
Deferred Tax Assets:
|
(in thousands)
|
|||||||
Allowance for loan losses
|
$
|
2,663
|
$
|
2,619
|
||||
Unrealized loss on AFS securities
|
14
|
58
|
||||||
Other
|
2,446
|
2,028
|
||||||
Total gross deferred tax assets
|
5,123
|
4,705
|
||||||
Deferred tax asset valuation allowance
|
—
|
—
|
||||||
Total deferred tax assets
|
5,123
|
4,705
|
||||||
Deferred Tax Liabilities:
|
||||||||
Deferred state taxes
|
(266
|
)
|
(248
|
)
|
||||
Depreciation
|
(653
|
)
|
(446
|
)
|
||||
Unrealized gain on AFS securities
|
—
|
—
|
||||||
Other
|
(1,032
|
)
|
(786
|
)
|
||||
Total deferred tax liabilities
|
(1,951
|
)
|
(1,480
|
)
|
||||
Net deferred tax asset
|
$
|
3,172
|
$
|
3,225
|
8. |
DEPOSITS
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Non-interest bearing demand deposits
|
$
|
110,843
|
$
|
108,161
|
||||
Interest-bearing deposits:
|
||||||||
NOW accounts
|
25,523
|
23,085
|
||||||
Money market deposit account
|
288,755
|
247,346
|
||||||
Savings accounts
|
15,689
|
14,641
|
||||||
Time deposits of $250,000 or more
|
96,431
|
93,439
|
||||||
Other time deposits
|
213,693
|
229,334
|
||||||
Total deposits
|
$
|
750,934
|
$
|
716,006
|
(in thousands)
|
||||
2020
|
$
|
272,257
|
||
2021
|
25,028
|
|||
2022
|
8,375
|
|||
2023
|
2,647
|
|||
2024
|
1,817
|
|||
Thereafter
|
—
|
|||
Total
|
$
|
310,124
|
9. |
OTHER BORROWINGS
|
December 31,
|
||||||||||||||||
2019
|
2018
|
|||||||||||||||
Contractual Maturity Date
|
Amount
|
Rate
|
Amount
|
Rate
|
||||||||||||
(dollars in thousands)
|
||||||||||||||||
January 2, 2019
|
$
|
—
|
—
|
$
|
25,000
|
2.56
|
%
|
|||||||||
March 21, 2019
|
—
|
—
|
5,000
|
2.34
|
%
|
|||||||||||
April 3, 2019
|
—
|
—
|
5,000
|
2.29
|
%
|
|||||||||||
May 31, 2019
|
—
|
—
|
5,000
|
2.41
|
%
|
|||||||||||
March 30, 2020
|
5,000
|
2.56
|
%
|
5,000
|
2.56
|
%
|
||||||||||
April 3, 2020
|
15,000
|
2.54
|
%
|
15,000
|
2.54
|
%
|
||||||||||
April 27, 2020
|
5,000
|
2.49
|
%
|
—
|
—
|
|||||||||||
May 29, 2020
|
5,000
|
2.35
|
%
|
—
|
—
|
|||||||||||
October 2, 2020
|
20,000
|
1.74
|
%
|
—
|
—
|
|||||||||||
April 5, 2021
|
10,000
|
2.65
|
%
|
10,000
|
2.65
|
%
|
||||||||||
May 10, 2021
|
5,000
|
2.44
|
%
|
—
|
—
|
|||||||||||
Total FHLB advances
|
$
|
65,000
|
$
|
70,000
|
||||||||||||
Weighted average rate
|
2.29
|
%
|
2.52
|
%
|
10. |
COMMITMENTS AND CONTINGENCIES
|
Year Ended December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Commitments to extend credit
|
$
|
67,538
|
$
|
57,450
|
||||
Standby letters of credit
|
655
|
—
|
||||||
Total
|
$
|
68,193
|
$
|
57,450
|
11. |
STOCKHOLDERS’ EQUITY
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Expected life in years
|
6.2
|
6.3
|
6.4
|
|||||||||
Risk-free interest rate
|
2.41
|
%
|
2.85
|
%
|
2.04
|
%
|
||||||
Expected volatility
|
27.6
|
%
|
34.7
|
%
|
44.1
|
%
|
||||||
Annual dividend rate
|
2.00
|
%
|
1.64
|
%
|
1.49
|
%
|
Year ended December 31, 2019
|
||||||||||||||||
Option
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
(in thousands, except exercise price and contractual terms)
|
||||||||||||||||
Outstanding options, beginning of period
|
679
|
$
|
8.32
|
|||||||||||||
Granted
|
126
|
10.19
|
||||||||||||||
Exercised
|
(39
|
)
|
6.92
|
|||||||||||||
Forfeited or expired
|
(35
|
)
|
7.81
|
|||||||||||||
Outstanding options, end of period
|
731
|
$
|
8.74
|
6.9
|
$
|
1,805
|
||||||||||
Options exercisable, end of period
|
394
|
$
|
7.77
|
5.9
|
$
|
1,337
|
||||||||||
Options expected to vest, end of period
|
644
|
$
|
8.52
|
6.7
|
$
|
1,721
|
Year Ended December 31, 2018
|
||||||||||||||||
Option
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
(in thousands, except exercise price and contractual terms)
|
||||||||||||||||
Outstanding options, beginning of period
|
680
|
$
|
7.21
|
|||||||||||||
Granted
|
136
|
11.61
|
||||||||||||||
Exercised
|
(102
|
)
|
5.39
|
|||||||||||||
Forfeited or expired
|
(35
|
)
|
8.16
|
|||||||||||||
Outstanding options, end of period
|
679
|
$
|
8.32
|
7.4
|
$
|
1,400
|
||||||||||
Options exercisable, end of period
|
340
|
$
|
7.39
|
6.6
|
$
|
945
|
||||||||||
Options expected to vest, end of period
|
588
|
$
|
8.08
|
7.2
|
$
|
1,318
|
Year Ended December 31, 2017
|
||||||||||||||||
Option
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
(in thousands, except exercise price and contractual terms)
|
||||||||||||||||
Outstanding options, beginning of period
|
705
|
$
|
6.41
|
|||||||||||||
Granted
|
159
|
10.15
|
||||||||||||||
Exercised
|
(97
|
)
|
5.05
|
|||||||||||||
Forfeited or expired
|
(87
|
)
|
8.57
|
|||||||||||||
Outstanding options, end of period
|
680
|
$
|
7.21
|
7.5
|
$
|
2,342
|
||||||||||
Options exercisable, end of period
|
319
|
$
|
6.35
|
6.6
|
$
|
1,371
|
||||||||||
Options expected to vest, end of period
|
576
|
$
|
7.03
|
7.3
|
$
|
719
|
Number of
Option Shares
|
Weighted
Average
Grant-Date Fair
Value
|
|||||||
(in thousands, except per share data)
|
||||||||
Unvested options, beginning of period
|
339
|
$
|
3.70
|
|||||
Granted
|
126
|
2.51
|
||||||
Vested
|
(105
|
)
|
3.71
|
|||||
Forfeited
|
(23
|
)
|
3.14
|
|||||
Unvested options, end of period
|
337
|
$
|
3.29
|
12. |
CAPITAL REQUIREMENTS
|
Total Capital
(To Risk-
Weighted
Assets) |
Tier 1 Capital
(To Risk-
Weighted
Assets)
|
Common
Equity Tier 1
(To Risk-
Weighted
Assets)
|
Leverage
Ratio/Tier1
Capital
(To Average
Assets)
|
|||||||||||||
December 31, 2019
|
||||||||||||||||
CWB’s actual regulatory ratios
|
11.41
|
%
|
10.28
|
%
|
10.28
|
%
|
9.06
|
%
|
||||||||
Minimum capital requirements
|
8.00
|
%
|
6.00
|
%
|
4.50
|
%
|
4.00
|
%
|
||||||||
Well-capitalized requirements
|
10.00
|
%
|
8.00
|
%
|
6.50
|
%
|
N/A
|
|||||||||
Minimum capital requirements including fully-phased in capital conservation buffer (2019)
|
10.50
|
%
|
8.50
|
%
|
7.00
|
%
|
N/A
|
Total Capital
(To Risk-
Weighted
Assets)
|
Tier 1 Capital
(To Risk-
Weighted
Assets)
|
Common
Equity Tier 1
(To Risk-
Weighted
Assets)
|
Leverage
Ratio/Tier1
Capital
(To Average
Assets)
|
|||||||||||||
December 31, 2018
|
||||||||||||||||
CWB’s actual regulatory ratios
|
10.83
|
%
|
9.68
|
%
|
9.68
|
%
|
8.57
|
%
|
||||||||
Minimum capital requirements
|
8.00
|
%
|
6.00
|
%
|
4.50
|
%
|
4.00
|
%
|
||||||||
Well-capitalized requirements
|
10.00
|
%
|
8.00
|
%
|
6.50
|
%
|
5.00
|
%
|
||||||||
Minimum capital requirements including fully-phased in capital conservation buffer (2019)
|
10.50
|
%
|
8.50
|
%
|
7.00
|
%
|
N/A
|
13. |
REVENUE RECOGNITION
|
Non-interest income
|
Twelve Months Ended December 31,
|
|||||||||||
In-scope of Topic 606:
|
2019
|
2018
|
2017
|
|||||||||
Service charges on deposit accounts
|
$
|
507
|
$
|
369
|
$
|
—
|
||||||
Exchange fees and other service charges
|
159
|
186
|
—
|
|||||||||
Non-interest income (in-scope of Topic 606)
|
666
|
555
|
—
|
|||||||||
Non-interest income (out-of-scope of Topic 606)
|
2,941
|
2,073
|
—
|
|||||||||
Total
|
$
|
3,607
|
$
|
2,628
|
$
|
—
|
14.
|
LEASES
|
Twelve Months Ended December 31,
|
||||||||
2019
|
2018
|
|||||||
Lease cost:
|
(in thousands)
|
|||||||
Operating lease cost
|
1,137
|
—
|
||||||
Sublease income
|
—
|
—
|
||||||
Total lease cost
|
1,137
|
—
|
||||||
Other information
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities
|
—
|
—
|
||||||
Operating cash flows from operating leases
|
1,117
|
—
|
||||||
Weighted average remaining lease term in years - operating leases
|
9.62
|
—
|
||||||
Weighted average discount rate - operating leases
|
3.23
|
%
|
—
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
2020
|
$
|
1,015
|
$
|
—
|
||||
2021
|
884
|
—
|
||||||
2022
|
779
|
—
|
||||||
2023
|
705
|
—
|
||||||
2024
|
713
|
—
|
||||||
Thereafter
|
3,291
|
—
|
||||||
Total future minimum lease payments
|
$
|
7,387
|
$
|
—
|
||||
Less remaining imputed interest
|
1,071
|
—
|
||||||
Total lease liabilities
|
$
|
6,316
|
$
|
—
|
15. |
EMPLOYEE BENEFIT PLANS
|
16. |
FAIR VALUE MEASUREMENT
|
Fair Value Measurements at the End of the Reporting
Period Using:
|
||||||||||||||||
December 31, 2019
|
Quoted
Prices
in Active
Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Fair Value
|
||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||
Investment securities measured at fair value
|
$
|
167
|
$
|
-
|
$
|
-
|
$
|
167
|
||||||||
Investment securities available-for-sale
|
-
|
19,264
|
-
|
19,264
|
||||||||||||
Interest only strips
|
-
|
-
|
41
|
41
|
||||||||||||
Servicing assets
|
-
|
-
|
846
|
846
|
||||||||||||
$
|
167
|
$
|
19,264
|
$
|
887
|
$
|
20,318
|
Fair Value Measurements at the End of the Reporting
Period Using:
|
||||||||||||||||
December 31, 2018
|
Quoted
Prices
in Active
Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Fair Value
|
||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||
Investment securities measured at fair value
|
$
|
121
|
$
|
-
|
$
|
-
|
$
|
121
|
||||||||
Investment securities available-for-sale
|
-
|
24,931
|
-
|
24,931
|
||||||||||||
Interest only strips
|
-
|
-
|
63
|
63
|
||||||||||||
Servicing assets
|
-
|
-
|
101
|
101
|
||||||||||||
$
|
121
|
$
|
24,931
|
$
|
164
|
$
|
25,216
|
Fair Value Measurements at the End of the Reporting
Period Using
|
||||||||||||||||
Total
|
Quoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)
|
Active
Markets
for
Similar
Assets
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
|||||||||||||
(in thousands)
|
||||||||||||||||
As of December 31, 2019:
|
||||||||||||||||
Impaired loans
|
$
|
2,334
|
$
|
—
|
$
|
2,334
|
$
|
—
|
||||||||
Loans held for sale
|
42,900
|
—
|
42,900
|
—
|
||||||||||||
Foreclosed real estate and repossessed assets
|
2,524
|
—
|
2,524
|
—
|
||||||||||||
$
|
47,758
|
$
|
—
|
$
|
47,758
|
$
|
—
|
|||||||||
As of December 31, 2018:
|
||||||||||||||||
Impaired loans
|
$
|
5,592
|
$
|
—
|
$
|
5,592
|
$
|
—
|
||||||||
Loans held for sale
|
49,050
|
—
|
49,050
|
—
|
||||||||||||
Foreclosed real estate and repossessed assets
|
—
|
—
|
—
|
—
|
||||||||||||
$
|
54,642
|
$
|
—
|
$
|
54,642
|
$
|
—
|
December 31, 2019
|
||||||||||||||||||||
Carrying
|
Fair Value
|
|||||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets:
|
(in thousands)
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
82,661
|
$
|
82,661
|
$
|
—
|
$
|
—
|
$
|
82,661
|
||||||||||
FRB and FHLB stock
|
4,087
|
—
|
4,087
|
—
|
4,087
|
|||||||||||||||
Investment securities
|
25,563
|
167
|
25,399
|
—
|
25,566
|
|||||||||||||||
Loans, net
|
766,846
|
—
|
752,287
|
9,907
|
762,194
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
750,934
|
—
|
751,398
|
—
|
751,398
|
|||||||||||||||
Other borrowings
|
65,000
|
—
|
65,236
|
—
|
65,236
|
December 31, 2018
|
||||||||||||||||||||
Carrying
|
Fair Value
|
|||||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets:
|
(in thousands)
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
56,915
|
$
|
56,915
|
$
|
—
|
$
|
—
|
$
|
56,915
|
||||||||||
FRB and FHLB stock
|
4,087
|
—
|
4,087
|
—
|
4,087
|
|||||||||||||||
Investment securities
|
32,353
|
121
|
32,079
|
—
|
32,200
|
|||||||||||||||
Loans, net
|
759,552
|
—
|
735,377
|
17,846
|
753,223
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
716,006
|
—
|
712,900
|
—
|
712,900
|
|||||||||||||||
Other borrowings
|
75,000
|
—
|
74,930
|
—
|
74,930
|
17. |
ACCUMULATED OTHER COMPREHENSIVE INCOME
|
Year Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Unrealized holding gains (losses ) on AFS
|
(in thousands)
|
|||||||||||
Beginning balance
|
$
|
(141
|
)
|
$
|
25
|
$
|
(29
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
63
|
(107
|
)
|
54
|
||||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
(59
|
)
|
—
|
||||||||
Net current-period other comprehensive income
|
63
|
(166
|
)
|
54
|
||||||||
Ending Balance
|
$
|
(78
|
)
|
$
|
(141
|
)
|
$
|
25
|
18. |
PARENT COMPANY FINANCIAL INFORMATION
|
December 31,
|
||||||||
2019
|
2018
|
|||||||
(in thousands)
|
||||||||
Assets:
|
||||||||
Cash and cash equivalents (including interest-bearing deposits in other financial institutions)
|
$
|
972
|
$
|
299
|
||||
Investment in subsidiary
|
81,171
|
72,429
|
||||||
Total loans
|
—
|
8,355
|
||||||
Other assets
|
168
|
240
|
||||||
Total assets
|
$
|
82,311
|
$
|
81,323
|
||||
Liabilities and Stockholders’ Equity:
|
||||||||
Other borrowings
|
$
|
—
|
$
|
5,000
|
||||
Other liabilities
|
333
|
172
|
||||||
Total liabilities
|
333
|
5,172
|
||||||
Total stockholders’ equity
|
81,978
|
76,151
|
||||||
Total liabilities and stockholders’ equity
|
$
|
82,311
|
$
|
81,323
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Interest income
|
$
|
227
|
$
|
264
|
$
|
60
|
||||||
Interest expense
|
111
|
329
|
196
|
|||||||||
Net interest expense
|
116
|
(65
|
)
|
(136
|
)
|
|||||||
Provision for loan losses
|
(145
|
)
|
60
|
—
|
||||||||
Net interest income after provision for loan losses
|
261
|
(125
|
)
|
(136
|
)
|
|||||||
Income from consolidated subsidiary
|
8,145
|
7,844
|
5,441
|
|||||||||
Total income
|
8,406
|
7,719
|
5,305
|
|||||||||
Total non-interest expenses
|
405
|
516
|
669
|
|||||||||
Income before income tax benefit
|
8,001
|
7,203
|
4,636
|
|||||||||
Income tax benefit
|
38
|
(206
|
)
|
(279
|
)
|
|||||||
Net income
|
$
|
7,963
|
$
|
7,409
|
$
|
4,915
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(in thousands)
|
||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||
Net income
|
$
|
7,963
|
$
|
7,409
|
$
|
4,915
|
||||||
Adjustments to reconcile net income to cash provided by operating activities:
|
—
|
—
|
—
|
|||||||||
Equity in undistributed income from subsidiary
|
(8,145
|
)
|
(7,844
|
)
|
(5,441
|
)
|
||||||
Stock-based compensation
|
382
|
478
|
537
|
|||||||||
Changes in:
|
—
|
—
|
—
|
|||||||||
Other assets
|
72
|
(50
|
)
|
129
|
||||||||
Other liabilities
|
161
|
157
|
(99
|
)
|
||||||||
Net cash provided by operating activities
|
433
|
150
|
41
|
|||||||||
Cash Flows from Investing Activities:
|
—
|
—
|
—
|
|||||||||
Loan originations and principal collections, net
|
8,355
|
(3,440
|
)
|
(4,915
|
)
|
|||||||
Net dividends from and investment in subsidiary
|
(534
|
)
|
6,158
|
3,201
|
||||||||
Net cash provided by (used in) investing activities
|
7,821
|
2,718
|
(1,714
|
)
|
||||||||
Cash Flows from Financing Activities:
|
||||||||||||
Net increase (decrease) from other borrowings
|
(5,000
|
)
|
(1,843
|
)
|
2,843
|
|||||||
Common stock dividends paid
|
(1,821
|
)
|
(1,581
|
)
|
(1,264
|
)
|
||||||
Common stock repurchase
|
(1,030
|
)
|
(669
|
)
|
—
|
|||||||
Proceeds from issuance of common stock
|
270
|
551
|
492
|
|||||||||
Net cash used in financing activities
|
(7,581
|
)
|
(3,542
|
)
|
2,071
|
|||||||
Net (decrease) increase in cash and cash equivalents
|
673
|
(674
|
)
|
398
|
||||||||
Cash and cash equivalents at beginning of year
|
299
|
973
|
575
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
972
|
$
|
299
|
$
|
973
|
19. |
QUARTERLY FINANCIAL DATA (UNAUDITED)
|
December 31, 2019
|
||||||||||||||||||||
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Total
|
||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||||||
Interest income
|
$
|
11,025
|
$
|
11,367
|
$
|
11,719
|
$
|
11,628
|
$
|
45,739
|
||||||||||
Interest expense
|
2,802
|
2,869
|
2,921
|
2,790
|
11,382
|
|||||||||||||||
Net interest income
|
8,223
|
8,498
|
8,798
|
8,838
|
34,357
|
|||||||||||||||
Provision (credit) for loan losses
|
(57
|
)
|
177
|
(75
|
)
|
(210
|
)
|
(165
|
)
|
|||||||||||
Net interest income after provision for loan losses
|
8,280
|
8,321
|
8,873
|
9,048
|
34,522
|
|||||||||||||||
Non-interest income
|
604
|
692
|
647
|
1,664
|
3,607
|
|||||||||||||||
Non-interest expenses
|
6,717
|
6,760
|
6,464
|
6,814
|
26,755
|
|||||||||||||||
Income before income taxes
|
2,167
|
2,253
|
3,056
|
3,898
|
11,374
|
|||||||||||||||
Provision for income taxes
|
657
|
673
|
902
|
1,179
|
3,411
|
|||||||||||||||
Net income
|
$
|
1,510
|
$
|
1,580
|
$
|
2,154
|
$
|
2,719
|
$
|
7,963
|
||||||||||
Earnings per share:
|
||||||||||||||||||||
Income per common share - basic
|
$
|
0.18
|
$
|
0.19
|
$
|
0.25
|
$
|
0.32
|
$
|
0.94
|
||||||||||
Income per common share - diluted
|
$
|
0.18
|
$
|
0.18
|
$
|
0.25
|
$
|
0.32
|
$
|
0.93
|
December 31, 2018
|
||||||||||||||||||||
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Total
|
||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||||||
Interest income
|
$
|
9,988
|
$
|
10,401
|
$
|
11,201
|
$
|
11,041
|
$
|
42,631
|
||||||||||
Interest expense
|
1,638
|
2,090
|
2,573
|
2,687
|
8,988
|
|||||||||||||||
Net interest income
|
8,350
|
8,311
|
8,628
|
8,354
|
33,643
|
|||||||||||||||
(Credit) provision for loan losses
|
(144
|
)
|
117
|
(197
|
)
|
238
|
14
|
|||||||||||||
Net interest income after provision for loan losses
|
8,494
|
8,194
|
8,825
|
8,116
|
33,629
|
|||||||||||||||
Non-interest income
|
639
|
688
|
641
|
660
|
2,628
|
|||||||||||||||
Non-interest expenses
|
6,533
|
6,257
|
6,402
|
6,847
|
26,039
|
|||||||||||||||
Income before income taxes
|
2,600
|
2,625
|
3,064
|
1,929
|
10,218
|
|||||||||||||||
Provision for income taxes
|
786
|
758
|
695
|
570
|
2,809
|
|||||||||||||||
Net income
|
$
|
1,814
|
$
|
1,867
|
$
|
2,369
|
$
|
1,359
|
$
|
7,409
|
||||||||||
Earnings per share:
|
||||||||||||||||||||
Income per common share - basic
|
$
|
0.22
|
$
|
0.23
|
$
|
0.29
|
$
|
0.16
|
$
|
0.89
|
||||||||||
Income per common share - diluted
|
$
|
0.21
|
$
|
0.21
|
$
|
0.27
|
$
|
0.16
|
$
|
0.88
|
Report of Independent Registered Public Accounting Firm
|
Page 48
|
|
Consolidated Balance Sheets as of December 31, 2019 and 2018
|
Page 50
|
|
Consolidated Income Statements for the three years ended December 31, 2019, 2018 and 2017
|
Page 51
|
|
Consolidated Statements of Comprehensive Income for the three years ended December 31, 2019, 2018 and 2017
|
Page 52
|
|
Consolidated Statements of Stockholders’ Equity for the three years ended December 31, 2019, 2018 and 2017
|
Page 53
|
|
Consolidated Statements of Cash Flows for the three years ended December 31, 2019, 2018 and 2017
|
Page 54
|
|
Notes to Consolidated Financial Statements
|
Page 55
|
101.INS
|
XBRL Taxonomy Instance Document***
|
101.SCH
|
XBRL Taxonomy Schema Document***
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document***
|
101.DEF
|
XBRL Taxonomy Definition Linkbase Document***
|
101.LAB
|
XBRL Taxonomy Label Linkbase Document***
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase Document***
|
(1)
|
Incorporated by reference from the Registrant’s Annual Report on Form 10-K filed with the Commission on March 26, 1998.
|
(2) |
Incorporated by reference from the Registrant’s Form 8-K filed with the Commission on December 18, 2008.
|
(3)
|
Incorporated by reference from the Registrant’s Amendment to Registration Statement on Form 8-A filed with the Commission on March 12, 1998.
|
(4) |
Incorporated by reference from the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2002 filed with the Commission on March 31, 2003.
|
(5) |
Incorporated by reference from Registrant’s Annual Report on Form 10-K for the year ended December 31, 2006 filed with the Commission on March 26, 2007.
|
(6) |
Incorporated by reference from the Registrant’s Form 8-K filed with the Commission on July 2, 2007.
|
(7) |
Incorporated by reference from the Registrant’s Form 8-K filed with the Commission on November 3, 2011.
|
(8)
|
Incorporated by reference from the Registrant’s Form 8-K filed with the Commission on January 29, 2014.
|
(9) |
Incorporated by reference from Registrant’s Statement on Form S-8 (File No 333-201281) filed with the Commission on December 29, 2014.
|
(10) |
Incorporated by reference from the Registrant’s Form 10-Q for the quarter and nine months ended September 30, 2015 filed with the Commission on November 6, 2015.
|
(11) |
Incorporated by reference from the Registrant’s Form 10-Q for the quarter and six months ended June 30, 2017 filed with the Commission on August 4, 2017.
|
(12) |
Incorporated by reference from the Registrant’s Statement on Form S-8 (File No 323-218994) filed with the Commission on June 27, 2017.
|
(13) |
Incorporated by reference from the Registrant’s Form 10-Q for the quarter and nine months ended September 30, 2018 filed with the Commission on November 2, 2018.
|
* |
Indicates a management contract or compensatory plan or arrangement.
|
** |
Filed herewith.
|
*** |
Furnished herewith.
|
COMMUNITY WEST BANCSHARES
|
||
(Registrant)
|
||
Date: March 10, 2020
|
By:
|
/s/ William R. Peeples
|
William R. Peeples
|
||
Chairman of the Board
|
Signature
|
Title
|
Date
|
|||
/s/ William R. Peeples
|
Director and Chairman of the Board
|
March 10, 2020
|
|||
William R. Peeples
|
|||||
/s/ Martin E. Plourd
|
President and Chief Executive Officer and Director
|
March 10, 2020
|
|||
Martin E. Plourd
|
(Principal Executive Officer)
|
||||
/s/ Susan C. Thompson
|
Executive Vice President and Chief Financial Officer
|
March 10, 2020
|
|||
Susan C. Thompson
|
(Principal Financial and Accounting Officer)
|
||||
/s/ Robert H. Bartlein
|
Director
|
March 10, 2020
|
|||
Robert H. Bartlein
|
|||||
/s/ Jean W. Blois
|
Director
|
March 10, 2020
|
|||
Jean W. Blois
|
|||||
/s/ Dana L. Boutain
|
Director
|
March 10, 2020
|
|||
Dana L. Boutain
|
|||||
/s/ Tom L. Dobyns
|
Director
|
March 10, 2020
|
|||
Tom L. Dobyns
|
|||||
/s/ John D. Illgen
|
Director and Secretary of the Board
|
March 10, 2020
|
|||
John D. Illgen
|
|||||
/s/ James W. Lokey
|
Director
|
March 10, 2020
|
|||
James W. Lokey
|
|||||
/s/ Shereef Moharram
|
Director
|
March 10, 2020
|
|||
Shereef Moharram
|
|||||
/s/ Kirk B. Stovesand
|
Director
|
March 10, 2020
|
|||
Kirk B. Stovesand
|
|
1. |
I have reviewed this annual report on Form 10-K of Community West Bancshares;
|
|
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 Rule 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:
|
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
|
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c. |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
|
d. |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
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 registrant's board of directors
(or persons performing the equivalent functions):
|
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
|
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Martin E. Plourd
|
|
Martin E. Plourd
|
|
President and Chief Executive Officer
|
|
Community West Bancshares
|
|
March 10, 2020
|
|
1. |
I have reviewed this annual report on Form 10-K of Community West Bancshares;
|
|
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 Rule 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:
|
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
|
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c. |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
|
d. |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
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 registrant's board of directors
(or persons performing the equivalent functions):
|
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
|
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Susan C. Thompson
|
|
Susan C. Thompson
|
|
Executive Vice President and Chief Financial Officer
|
|
Community West Bancshares
|
|
March 10, 2020
|
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant as of and for the periods presented in the Report.
|
/s/Martin E. Plourd
|
|
Martin E. Plourd
|
|
President and Chief Executive Officer
|
|
/s/Susan C. Thompson
|
|
Susan C. Thompson
|
|
Executive Vice President and Chief Financial Officer
|
|
March 10, 2020
|