FORM 10-Q
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California
(State or other jurisdiction of
incorporation or organization)
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20-8856755
(IRS Employer Identification No.)
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3701 Wilshire Boulevard, Suite 900
Los Angeles, California
(Address of principal executive offices)
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90010
(Zip Code)
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(213) 210-2000
(Registrant’s telephone number, including area code)
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Pacific City Financial Corporation
(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock, no par value
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PCB
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Nasdaq Global Select Market
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Large accelerated filer
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¨
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Accelerated filer
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x
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Non-accelerated filer
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¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
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x
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Emerging growth company
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x
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Part I - Financial Information
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Part II - Other Information
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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•
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business and economic conditions, particularly those affecting the financial services industry and our primary market areas;
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•
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our ability to successfully manage our credit risk and the sufficiency of our allowance for loan loss;
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•
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factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance;
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•
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governmental monetary and fiscal policies, and changes in market interest rates;
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•
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compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Economic Growth, Regulatory Relief and Consumer Protection Act and others relating to banking, consumer protection, securities and tax matters;
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•
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compliance with the regulatory consent order related to Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”) matters to which Pacific City Bank, our wholly owned subsidiary, is subject;
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•
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the significant portion of our loan portfolio that is comprised of real estate loans;
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•
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our ability to attract and retain Korean-American customers;
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•
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our ability to identify and address cyber-security risks, breaches, fraud and systems errors;
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•
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our ability to effectively execute our strategic plan and manage our growth;
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•
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changes in our senior management team and our ability to attract, motivate and retain qualified personnel;
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•
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liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary;
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•
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costs and obligations associated with operating as a public company;
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•
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effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services;
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•
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the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; and
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•
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changes in federal tax law or policy.
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(Unaudited)
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June 30, 2019
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December 31, 2018
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Assets
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||||
Cash and due from banks
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$
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19,080
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$
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24,121
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Interest-bearing deposits in other financial institutions
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114,205
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138,152
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Total cash and cash equivalents
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133,285
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162,273
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Securities available-for-sale, at fair value
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142,539
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146,991
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Securities held-to-maturity, at amortized cost (fair value of $22,813 at June 30, 2019 and $21,152 at December 31, 2018)
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22,685
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21,760
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Total investment securities
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165,224
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168,751
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Loans held-for-sale
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440
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5,781
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Loans held-for-investment, net of deferred loan costs (fees)
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1,395,557
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1,338,682
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Allowance for loan losses
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(13,328
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)
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(13,167
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)
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Net loans held-for-investment
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1,382,229
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1,325,515
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Premises and equipment, net
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4,334
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4,588
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Federal Home Loan Bank and other restricted stock, at cost
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8,345
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7,433
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Other real estate owned, net
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395
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—
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Deferred tax assets, net
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3,241
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3,377
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Servicing assets
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7,230
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7,666
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Operating lease assets
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10,105
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—
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Accrued interest receivable and other assets
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11,658
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11,644
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Total assets
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$
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1,726,486
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$
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1,697,028
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Liabilities and Shareholders’ Equity
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Deposits:
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Noninterest-bearing demand
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$
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339,603
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$
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329,270
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Savings, NOW and money market accounts
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331,357
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313,610
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Time deposits of $250,000 or less
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480,786
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519,634
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Time deposits of more than $250,000
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294,780
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281,239
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Total deposits
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1,446,526
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1,443,753
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Federal Home Loan Bank advances
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35,000
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30,000
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Operating lease liabilities
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11,131
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—
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Accrued interest payable and other liabilities
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10,429
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12,979
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Total liabilities
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1,503,086
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1,486,732
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Commitments and contingent liabilities
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Preferred stock, 10,000,000 shares authorized, no par value, 0 issued and outstanding shares
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—
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—
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Common stock, 60,000,000 shares authorized, no par value; 15,980,655 and 15,977,754 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively
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170,769
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171,067
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Additional paid-in capital
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3,366
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3,299
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Retained earnings
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48,927
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37,577
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Accumulated other comprehensive income (loss), net
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338
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(1,647
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)
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Total shareholders’ equity
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223,400
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210,296
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Total liabilities and shareholders’ equity
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$
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1,726,486
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$
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1,697,028
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2019
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2018
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2019
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2018
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Interest income:
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Interest and fees on loans
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$
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21,969
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$
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18,610
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$
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42,903
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$
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36,050
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Interest on tax-exempt investment securities
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38
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41
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77
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81
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Interest on investment securities
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1,024
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828
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2,078
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1,636
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Interest and dividends on other interest-earning assets
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999
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865
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1,924
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1,205
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Total interest income
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24,030
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20,344
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46,982
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38,972
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Interest expense:
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Interest on deposits
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6,200
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4,292
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11,865
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7,458
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|
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Interest on borrowings
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138
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170
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|
272
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|
|
338
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||||
Total interest expense
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6,338
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4,462
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12,137
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7,796
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||||
Net interest income
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17,692
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15,882
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34,845
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31,176
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Provision for loan losses
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394
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|
|
425
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309
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|
520
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|
||||
Net interest income after provision for loan losses
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17,298
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15,457
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34,536
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30,656
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|
||||
Noninterest income:
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||||||||
Service charges and fees on deposits
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368
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376
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|
732
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|
|
725
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|
||||
Loan servicing income
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492
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|
585
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1,123
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1,211
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|
||||
Gain on sale of loans
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1,891
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1,033
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3,011
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3,149
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|
||||
Other income
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303
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|
279
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|
597
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|
550
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|
||||
Total noninterest income
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3,054
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2,273
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5,463
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5,635
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|
||||
Noninterest expense:
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|
|
|
|
|
|
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|
||||||||
Salaries and employee benefits
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6,600
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6,153
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13,222
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|
|
12,399
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|
||||
Occupancy and equipment
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1,407
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|
|
1,246
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2,720
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|
|
2,390
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|
||||
Professional fees
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|
686
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|
|
988
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|
|
1,444
|
|
|
1,511
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|
||||
Marketing and business promotion
|
|
529
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|
|
541
|
|
|
757
|
|
|
929
|
|
||||
Data processing
|
|
338
|
|
|
295
|
|
|
656
|
|
|
597
|
|
||||
Director fees and expenses
|
|
185
|
|
|
211
|
|
|
374
|
|
|
441
|
|
||||
Regulatory assessments
|
|
309
|
|
|
145
|
|
|
425
|
|
|
277
|
|
||||
Other expenses
|
|
930
|
|
|
1,361
|
|
|
1,675
|
|
|
2,027
|
|
||||
Total noninterest expense
|
|
10,984
|
|
|
10,940
|
|
|
21,273
|
|
|
20,571
|
|
||||
Income before income taxes
|
|
9,368
|
|
|
6,790
|
|
|
18,726
|
|
|
15,720
|
|
||||
Income tax expense
|
|
2,767
|
|
|
2,028
|
|
|
5,561
|
|
|
4,694
|
|
||||
Net income
|
|
$
|
6,601
|
|
|
$
|
4,762
|
|
|
$
|
13,165
|
|
|
$
|
11,026
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share, basic
|
|
$
|
0.41
|
|
|
$
|
0.35
|
|
|
$
|
0.82
|
|
|
$
|
0.82
|
|
Earnings per common share, diluted
|
|
$
|
0.40
|
|
|
$
|
0.35
|
|
|
$
|
0.81
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding, basic
|
|
16,017,089
|
|
|
13,432,775
|
|
|
16,008,325
|
|
|
13,425,557
|
|
||||
Weighted-average common shares outstanding, diluted
|
|
16,330,039
|
|
|
13,628,677
|
|
|
16,303,274
|
|
|
13,607,834
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
|
$
|
6,601
|
|
|
$
|
4,762
|
|
|
$
|
13,165
|
|
|
$
|
11,026
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on securities available-for-sale arising during the period
|
|
1,638
|
|
|
(515
|
)
|
|
2,810
|
|
|
(1,960
|
)
|
||||
Income tax benefit (expense) related to items of other comprehensive income
|
|
(480
|
)
|
|
151
|
|
|
(825
|
)
|
|
571
|
|
||||
Total other comprehensive income (loss), net of tax
|
|
1,158
|
|
|
(364
|
)
|
|
1,985
|
|
|
(1,389
|
)
|
||||
Total comprehensive income
|
|
$
|
7,759
|
|
|
$
|
4,398
|
|
|
$
|
15,150
|
|
|
$
|
9,637
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||||||||||
|
|
|
|
Shareholders
’
Equity
|
|||||||||||||||||||
|
|
Common Stock Outstanding Shares
|
|
Common stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
|||||||||||
Balance at April 1, 2018
|
|
13,424,777
|
|
|
$
|
125,511
|
|
|
$
|
3,072
|
|
|
$
|
20,898
|
|
|
$
|
(2,248
|
)
|
|
$
|
147,233
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,762
|
|
|
—
|
|
|
4,762
|
|
|||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(364
|
)
|
|
(364
|
)
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
157
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|||||
Stock options exercised
|
|
10,437
|
|
|
68
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||
Cash dividends declared on common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(402
|
)
|
|
—
|
|
|
(402
|
)
|
|||||
Balance at June 30, 2018
|
|
13,435,214
|
|
|
$
|
125,579
|
|
|
$
|
3,206
|
|
|
$
|
25,258
|
|
|
$
|
(2,612
|
)
|
|
$
|
151,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at April 1, 2019
|
|
16,011,151
|
|
|
$
|
171,407
|
|
|
$
|
3,336
|
|
|
$
|
43,288
|
|
|
$
|
(820
|
)
|
|
$
|
217,211
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,601
|
|
|
—
|
|
|
6,601
|
|
|||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,158
|
|
|
1,158
|
|
|||||
Repurchase of common stock
|
|
(57,551
|
)
|
|
(974
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(974
|
)
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
162
|
|
|
—
|
|
|
—
|
|
|
162
|
|
|||||
Stock options exercised
|
|
27,055
|
|
|
336
|
|
|
(132
|
)
|
|
—
|
|
|
—
|
|
|
204
|
|
|||||
Cash dividends declared on common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(962
|
)
|
|
—
|
|
|
(962
|
)
|
|||||
Balance at June 30, 2019
|
|
15,980,655
|
|
|
$
|
170,769
|
|
|
$
|
3,366
|
|
|
$
|
48,927
|
|
|
$
|
338
|
|
|
$
|
223,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||||||||||||||
|
|
|
|
Shareholders
’
Equity
|
|||||||||||||||||||
|
|
Common Stock Outstanding Shares
|
|
Common stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
|||||||||||
Balance at January 1, 2018
|
|
13,417,899
|
|
|
$
|
125,430
|
|
|
$
|
2,941
|
|
|
$
|
15,036
|
|
|
$
|
(1,223
|
)
|
|
$
|
142,184
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,026
|
|
|
—
|
|
|
11,026
|
|
|||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,389
|
)
|
|
(1,389
|
)
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
339
|
|
|
—
|
|
|
—
|
|
|
339
|
|
|||||
Stock options exercised
|
|
17,315
|
|
|
149
|
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
75
|
|
|||||
Cash dividends declared on common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(804
|
)
|
|
—
|
|
|
(804
|
)
|
|||||
Balance at June 30, 2018
|
|
13,435,214
|
|
|
$
|
125,579
|
|
|
$
|
3,206
|
|
|
$
|
25,258
|
|
|
$
|
(2,612
|
)
|
|
$
|
151,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at January 1, 2019
|
|
15,977,754
|
|
|
$
|
171,067
|
|
|
$
|
3,299
|
|
|
$
|
37,577
|
|
|
$
|
(1,647
|
)
|
|
$
|
210,296
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,165
|
|
|
—
|
|
|
13,165
|
|
|||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,985
|
|
|
1,985
|
|
|||||
Repurchase of common stock
|
|
(57,551
|
)
|
|
(974
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(974
|
)
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
323
|
|
|
—
|
|
|
—
|
|
|
323
|
|
|||||
Stock options exercised
|
|
60,452
|
|
|
676
|
|
|
(256
|
)
|
|
—
|
|
|
—
|
|
|
420
|
|
|||||
Cash dividends declared on common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,762
|
)
|
|
—
|
|
|
(1,762
|
)
|
|||||
Cumulative effect adjustment upon adoption of new lease accounting standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
(53
|
)
|
|||||
Balance at June 30, 2019
|
|
15,980,655
|
|
|
$
|
170,769
|
|
|
$
|
3,366
|
|
|
$
|
48,927
|
|
|
$
|
338
|
|
|
$
|
223,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
13,165
|
|
|
$
|
11,026
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation of premises and equipment
|
|
763
|
|
|
612
|
|
||
Net amortization of premiums (discounts) on securities
|
|
406
|
|
|
406
|
|
||
Accretion of discounts on loans
|
|
(2,041
|
)
|
|
(1,967
|
)
|
||
Net accretion of deferred loan costs (fees)
|
|
(209
|
)
|
|
(262
|
)
|
||
Amortization of servicing assets
|
|
1,213
|
|
|
1,244
|
|
||
Provision for loan losses
|
|
309
|
|
|
520
|
|
||
Deferred tax expense (benefit)
|
|
(689
|
)
|
|
57
|
|
||
Stock-based compensation
|
|
323
|
|
|
339
|
|
||
Gain on sale of loans
|
|
(3,011
|
)
|
|
(3,149
|
)
|
||
Originations of loans held-for-sale
|
|
(47,532
|
)
|
|
(60,399
|
)
|
||
Proceeds from sales of and principal collected on loans held-for-sale
|
|
56,693
|
|
|
49,135
|
|
||
Change in accrued interest receivable and other assets
|
|
(12
|
)
|
|
(41
|
)
|
||
Change in accrued interest payable and other liabilities
|
|
(1,920
|
)
|
|
1,968
|
|
||
Net cash provided by operating activities
|
|
17,458
|
|
|
(511
|
)
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Purchase of securities available-for-sale
|
|
(6,247
|
)
|
|
(16,060
|
)
|
||
Proceeds from maturities, calls, and paydowns of securities available-for-sale
|
|
13,179
|
|
|
11,329
|
|
||
Purchase of securities held-to-maturity
|
|
(2,150
|
)
|
|
—
|
|
||
Proceeds from maturities and paydowns of securities held-to-maturity
|
|
1,149
|
|
|
629
|
|
||
Proceeds from sale of loans held-for-sale previously classified as held-for-investment
|
|
303
|
|
|
7,208
|
|
||
Net change in loans receivable
|
|
(56,712
|
)
|
|
(71,304
|
)
|
||
Purchase of Federal Home Loan Bank stock
|
|
(912
|
)
|
|
(844
|
)
|
||
Proceeds from sale of other real estate owned
|
|
—
|
|
|
102
|
|
||
Purchases of premises and equipment
|
|
(513
|
)
|
|
(787
|
)
|
||
Net cash used in investing activities
|
|
(51,903
|
)
|
|
(69,727
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Net increase in deposits
|
|
2,773
|
|
|
175,955
|
|
||
Net change in short-term Federal Home Loan Bank advances
|
|
15,000
|
|
|
—
|
|
||
Repayment of long-term Federal Home Loan Bank advances
|
|
(10,000
|
)
|
|
(10,000
|
)
|
||
Stock options exercised
|
|
420
|
|
|
75
|
|
||
Repurchase of common stock
|
|
(974
|
)
|
|
—
|
|
||
Cash dividends paid on common stock
|
|
(1,762
|
)
|
|
(804
|
)
|
||
Net cash provided by financing activities
|
|
5,457
|
|
|
165,226
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(28,988
|
)
|
|
94,988
|
|
||
Cash and cash equivalents at beginning of year
|
|
162,273
|
|
|
73,658
|
|
||
Cash and cash equivalents at end of year
|
|
$
|
133,285
|
|
|
$
|
168,646
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
||||
Interest paid
|
|
$
|
13,017
|
|
|
$
|
7,438
|
|
Income taxes paid
|
|
7,322
|
|
|
4,194
|
|
||
Supplemental disclosures of non-cash investment activities:
|
|
|
|
|
||||
Loans transferred to loans held-for-sale
|
|
$
|
303
|
|
|
$
|
7,034
|
|
Loans transferred to other real estate owned
|
|
50
|
|
|
—
|
|
||
Right of use assets obtained in exchange for lease obligations
|
|
1,588
|
|
|
—
|
|
||
|
|
|
|
|
•
|
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
|
•
|
Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
|
|
|
Fair Value Measurement Level
|
|
|
||||||||||||
($ in thousands)
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
68,497
|
|
|
$
|
—
|
|
|
$
|
68,497
|
|
Residential collateralized mortgage obligations
|
|
—
|
|
|
52,121
|
|
|
—
|
|
|
52,121
|
|
||||
SBA loan pool securities
|
|
—
|
|
|
21,131
|
|
|
—
|
|
|
21,131
|
|
||||
Municipal bonds
|
|
—
|
|
|
790
|
|
|
—
|
|
|
790
|
|
||||
Total securities available-for-sale
|
|
—
|
|
|
142,539
|
|
|
—
|
|
|
142,539
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
—
|
|
|
$
|
142,539
|
|
|
$
|
—
|
|
|
$
|
142,539
|
|
Total liabilities measured at fair value on a recurring basis
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
67,921
|
|
|
$
|
—
|
|
|
$
|
67,921
|
|
Residential collateralized mortgage obligations
|
|
—
|
|
|
55,649
|
|
|
—
|
|
|
55,649
|
|
||||
SBA loan pool securities
|
|
—
|
|
|
22,632
|
|
|
—
|
|
|
22,632
|
|
||||
Municipal bonds
|
|
—
|
|
|
789
|
|
|
—
|
|
|
789
|
|
||||
Total securities available-for-sale
|
|
—
|
|
|
146,991
|
|
|
—
|
|
|
146,991
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
—
|
|
|
$
|
146,991
|
|
|
$
|
—
|
|
|
$
|
146,991
|
|
Total liabilities measured at fair value on a recurring basis
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurement Level
|
|
|
||||||||||||
($ in thousands)
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Total assets measured at fair value on a non-recurring basis
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total liabilities measured at fair value on a non-recurring basis
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
SBA property
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
$
|
51
|
|
Total impaired loans
|
|
—
|
|
|
—
|
|
|
51
|
|
|
51
|
|
||||
Total assets measured at fair value on a non-recurring basis
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
$
|
51
|
|
Total liabilities measured at fair value on a non-recurring basis
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Collateral dependent impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial property
|
|
$
|
—
|
|
|
$
|
(53
|
)
|
|
$
|
—
|
|
|
$
|
(53
|
)
|
SBA property
|
|
(18
|
)
|
|
(25
|
)
|
|
(20
|
)
|
|
(151
|
)
|
||||
Servicing assets - SBA property loans
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
(63
|
)
|
||||
Other real estate owned
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Net losses recognized
|
|
$
|
(18
|
)
|
|
$
|
(141
|
)
|
|
$
|
(20
|
)
|
|
$
|
(264
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value
|
|
Fair Value
|
|
Fair Value Measurements
|
||||||||||||||
($ in thousands)
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in other financial institutions
|
|
$
|
114,205
|
|
|
$
|
114,205
|
|
|
$
|
114,205
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
142,539
|
|
|
142,539
|
|
|
—
|
|
|
142,539
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
22,685
|
|
|
22,813
|
|
|
—
|
|
|
22,813
|
|
|
—
|
|
|||||
Loans held-for-sale
|
|
440
|
|
|
449
|
|
|
—
|
|
|
449
|
|
|
—
|
|
|||||
Net loans held-for-investment
|
|
1,382,229
|
|
|
1,391,534
|
|
|
—
|
|
|
—
|
|
|
1,391,534
|
|
|||||
FHLB and other restricted stock
|
|
8,345
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
5,314
|
|
|
5,314
|
|
|
83
|
|
|
551
|
|
|
4,680
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
1,446,526
|
|
|
$
|
1,451,505
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,451,505
|
|
FHLB advances
|
|
35,000
|
|
|
35,075
|
|
|
—
|
|
|
35,075
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
5,343
|
|
|
5,343
|
|
|
—
|
|
|
36
|
|
|
5,307
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in other financial institutions
|
|
$
|
138,152
|
|
|
$
|
138,152
|
|
|
$
|
138,152
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
146,991
|
|
|
146,991
|
|
|
—
|
|
|
146,991
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
21,760
|
|
|
21,152
|
|
|
—
|
|
|
21,152
|
|
|
—
|
|
|||||
Loans held-for-sale
|
|
5,781
|
|
|
6,175
|
|
|
—
|
|
|
6,175
|
|
|
—
|
|
|||||
Net loans held-for-investment
|
|
1,325,515
|
|
|
1,337,299
|
|
|
—
|
|
|
—
|
|
|
1,337,299
|
|
|||||
FHLB and other restricted stock
|
|
7,433
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
5,178
|
|
|
5,178
|
|
|
112
|
|
|
568
|
|
|
4,498
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
1,443,753
|
|
|
$
|
1,425,023
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,425,023
|
|
FHLB advances
|
|
30,000
|
|
|
29,641
|
|
|
—
|
|
|
29,641
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
6,223
|
|
|
6,223
|
|
|
—
|
|
|
1
|
|
|
6,222
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Amortized Cost
|
|
Gross Unrealized Gain
|
|
Gross Unrealized Loss
|
|
Fair Value
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
|
$
|
68,067
|
|
|
$
|
755
|
|
|
$
|
(325
|
)
|
|
$
|
68,497
|
|
Residential collateralized mortgage obligations
|
|
52,406
|
|
|
132
|
|
|
(417
|
)
|
|
52,121
|
|
||||
SBA loan pool securities
|
|
21,019
|
|
|
164
|
|
|
(52
|
)
|
|
21,131
|
|
||||
Municipal bonds
|
|
774
|
|
|
16
|
|
|
—
|
|
|
790
|
|
||||
Total securities available-for-sale
|
|
$
|
142,266
|
|
|
$
|
1,067
|
|
|
$
|
(794
|
)
|
|
$
|
142,539
|
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
$
|
17,601
|
|
|
$
|
20
|
|
|
$
|
(172
|
)
|
|
$
|
17,449
|
|
Municipal bonds
|
|
5,084
|
|
|
281
|
|
|
(1
|
)
|
|
5,364
|
|
||||
Total securities held-to-maturity
|
|
$
|
22,685
|
|
|
$
|
301
|
|
|
$
|
(173
|
)
|
|
$
|
22,813
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
|
$
|
68,975
|
|
|
$
|
177
|
|
|
$
|
(1,231
|
)
|
|
$
|
67,921
|
|
Residential collateralized mortgage obligations
|
|
56,625
|
|
|
55
|
|
|
(1,031
|
)
|
|
55,649
|
|
||||
SBA loan pool securities
|
|
23,144
|
|
|
—
|
|
|
(512
|
)
|
|
22,632
|
|
||||
Municipal bonds
|
|
784
|
|
|
5
|
|
|
—
|
|
|
789
|
|
||||
Total securities available-for-sale
|
|
$
|
149,528
|
|
|
$
|
237
|
|
|
$
|
(2,774
|
)
|
|
$
|
146,991
|
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
$
|
16,659
|
|
|
$
|
—
|
|
|
$
|
(602
|
)
|
|
$
|
16,057
|
|
Municipal bonds
|
|
5,101
|
|
|
37
|
|
|
(43
|
)
|
|
5,095
|
|
||||
Total securities held-to-maturity
|
|
$
|
21,760
|
|
|
$
|
37
|
|
|
$
|
(645
|
)
|
|
$
|
21,152
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Available-For-Sale
|
|
Securities Held-To-Maturity
|
||||||||||||
($ in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Within one year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
131
|
|
|
$
|
131
|
|
One to five years
|
|
—
|
|
|
—
|
|
|
1,424
|
|
|
1,464
|
|
||||
Five to ten years
|
|
774
|
|
|
790
|
|
|
1,208
|
|
|
1,244
|
|
||||
Greater than ten years
|
|
—
|
|
|
—
|
|
|
2,321
|
|
|
2,525
|
|
||||
Residential mortgage-backed securities, residential collateralized mortgage obligations and SBA loan pool securities
|
|
141,492
|
|
|
141,749
|
|
|
17,601
|
|
|
17,449
|
|
||||
Total
|
|
$
|
142,266
|
|
|
$
|
142,539
|
|
|
$
|
22,685
|
|
|
$
|
22,813
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross realized gains on sales and calls of securities available-for-sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Gross realized losses on sales and calls of securities available-for-sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net realized gains (losses) on sales and calls of securities available-for-sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Proceeds from sales and calls of securities available-for-sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,060
|
|
Tax expense on sales and calls of securities available-for-sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Length of Time that Individual Securities Have Been In a Continuous Unrealized Loss Position
|
|||||||||||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
|||||||||||||||||||||||||||
($ in thousands)
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Number of Securities
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Number of Securities
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Number of Securities
|
|||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
30,778
|
|
|
$
|
(325
|
)
|
|
37
|
|
|
$
|
30,778
|
|
|
$
|
(325
|
)
|
|
37
|
|
Residential collateralized mortgage obligations
|
|
10,175
|
|
|
(87
|
)
|
|
6
|
|
|
34,408
|
|
|
(330
|
)
|
|
33
|
|
|
44,583
|
|
|
(417
|
)
|
|
39
|
|
||||||
SBA loan pool securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,113
|
|
|
(52
|
)
|
|
6
|
|
|
5,113
|
|
|
(52
|
)
|
|
6
|
|
||||||
Total securities available-for-sale
|
|
$
|
10,175
|
|
|
$
|
(87
|
)
|
|
6
|
|
|
$
|
70,299
|
|
|
$
|
(707
|
)
|
|
76
|
|
|
$
|
80,474
|
|
|
$
|
(794
|
)
|
|
82
|
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
11,803
|
|
|
$
|
(172
|
)
|
|
12
|
|
|
$
|
11,803
|
|
|
$
|
(172
|
)
|
|
12
|
|
Municipal bonds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
131
|
|
|
(1
|
)
|
|
1
|
|
|
131
|
|
|
(1
|
)
|
|
1
|
|
||||||
Total securities held-to-maturity
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
11,934
|
|
|
$
|
(173
|
)
|
|
13
|
|
|
$
|
11,934
|
|
|
$
|
(173
|
)
|
|
13
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage-backed securities
|
|
$
|
1,868
|
|
|
$
|
(6
|
)
|
|
2
|
|
|
$
|
41,845
|
|
|
$
|
(1,225
|
)
|
|
48
|
|
|
$
|
43,713
|
|
|
$
|
(1,231
|
)
|
|
50
|
|
Residential collateralized mortgage obligations
|
|
7,067
|
|
|
(29
|
)
|
|
5
|
|
|
34,943
|
|
|
(1,002
|
)
|
|
34
|
|
|
42,010
|
|
|
(1,031
|
)
|
|
39
|
|
||||||
SBA loan pool securities
|
|
2,809
|
|
|
(7
|
)
|
|
2
|
|
|
19,823
|
|
|
(505
|
)
|
|
18
|
|
|
22,632
|
|
|
(512
|
)
|
|
20
|
|
||||||
Total securities available-for-sale
|
|
$
|
11,744
|
|
|
$
|
(42
|
)
|
|
9
|
|
|
$
|
96,611
|
|
|
$
|
(2,732
|
)
|
|
100
|
|
|
$
|
108,355
|
|
|
$
|
(2,774
|
)
|
|
109
|
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
$
|
2,022
|
|
|
$
|
(23
|
)
|
|
1
|
|
|
$
|
14,035
|
|
|
$
|
(579
|
)
|
|
15
|
|
|
$
|
16,057
|
|
|
$
|
(602
|
)
|
|
16
|
|
Municipal bonds
|
|
2,600
|
|
|
(38
|
)
|
|
8
|
|
|
497
|
|
|
(5
|
)
|
|
3
|
|
|
3,097
|
|
|
(43
|
)
|
|
11
|
|
||||||
Total securities held-to-maturity
|
|
$
|
4,622
|
|
|
$
|
(61
|
)
|
|
9
|
|
|
$
|
14,532
|
|
|
$
|
(584
|
)
|
|
18
|
|
|
$
|
19,154
|
|
|
$
|
(645
|
)
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Real estate loans:
|
|
|
|
|
||||
Commercial property
|
|
$
|
748,526
|
|
|
$
|
709,409
|
|
Residential property
|
|
240,630
|
|
|
233,816
|
|
||
SBA property
|
|
128,208
|
|
|
120,939
|
|
||
Construction
|
|
22,455
|
|
|
27,323
|
|
||
Total real estate loans
|
|
1,139,819
|
|
|
1,091,487
|
|
||
Commercial and industrial loans:
|
|
|
|
|
||||
Commercial term
|
|
105,651
|
|
|
102,133
|
|
||
Commercial lines of credit
|
|
85,197
|
|
|
80,473
|
|
||
SBA commercial term
|
|
24,762
|
|
|
27,147
|
|
||
Trade finance
|
|
16,334
|
|
|
11,521
|
|
||
Total commercial and industrial loans
|
|
231,944
|
|
|
221,274
|
|
||
Other consumer loans
|
|
23,794
|
|
|
25,921
|
|
||
Loans held-for-investment
|
|
1,395,557
|
|
|
1,338,682
|
|
||
Allowance for loan losses
|
|
(13,328
|
)
|
|
(13,167
|
)
|
||
Net loans held-for-investment
|
|
$
|
1,382,229
|
|
|
$
|
1,325,515
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||||||
($ in thousands)
|
|
Real Estate
|
|
Commercial and Industrial
|
|
Other Consumer
|
|
Total
|
||||||||
Balance at April 1, 2019
|
|
$
|
9,324
|
|
|
$
|
3,608
|
|
|
$
|
205
|
|
|
$
|
13,137
|
|
Charge-offs
|
|
(17
|
)
|
|
(168
|
)
|
|
(67
|
)
|
|
(252
|
)
|
||||
Recoveries on loans previously charged off
|
|
—
|
|
|
33
|
|
|
16
|
|
|
49
|
|
||||
Provision (reversal) for loan losses
|
|
404
|
|
|
(47
|
)
|
|
37
|
|
|
394
|
|
||||
Balance at June 30, 2019
|
|
$
|
9,711
|
|
|
$
|
3,426
|
|
|
$
|
191
|
|
|
$
|
13,328
|
|
Balance at April 1, 2018
|
|
$
|
9,076
|
|
|
$
|
3,100
|
|
|
$
|
195
|
|
|
$
|
12,371
|
|
Charge-offs
|
|
(79
|
)
|
|
(90
|
)
|
|
(127
|
)
|
|
(296
|
)
|
||||
Recoveries on loans previously charged off
|
|
50
|
|
|
54
|
|
|
17
|
|
|
121
|
|
||||
Provision for loan losses
|
|
276
|
|
|
44
|
|
|
105
|
|
|
425
|
|
||||
Balance at June 30, 2018
|
|
$
|
9,323
|
|
|
$
|
3,108
|
|
|
$
|
190
|
|
|
$
|
12,621
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||
($ in thousands)
|
|
Real Estate
|
|
Commercial and Industrial
|
|
Other Consumer
|
|
Total
|
||||||||
Balance at January 1, 2019
|
|
$
|
9,104
|
|
|
$
|
3,877
|
|
|
$
|
186
|
|
|
$
|
13,167
|
|
Charge-offs
|
|
(19
|
)
|
|
(168
|
)
|
|
(111
|
)
|
|
(298
|
)
|
||||
Recoveries on loans previously charged off
|
|
4
|
|
|
74
|
|
|
72
|
|
|
150
|
|
||||
Provision (reversal) for loan losses
|
|
622
|
|
|
(357
|
)
|
|
44
|
|
|
309
|
|
||||
Balance at June 30, 2019
|
|
$
|
9,711
|
|
|
$
|
3,426
|
|
|
$
|
191
|
|
|
$
|
13,328
|
|
Balance at January 1, 2018
|
|
$
|
8,507
|
|
|
$
|
3,548
|
|
|
$
|
169
|
|
|
$
|
12,224
|
|
Charge-offs
|
|
(204
|
)
|
|
(90
|
)
|
|
(141
|
)
|
|
(435
|
)
|
||||
Recoveries on loans previously charged off
|
|
52
|
|
|
234
|
|
|
26
|
|
|
312
|
|
||||
Provision (reversal) for loan losses
|
|
968
|
|
|
(584
|
)
|
|
136
|
|
|
520
|
|
||||
Balance at June 30, 2018
|
|
$
|
9,323
|
|
|
$
|
3,108
|
|
|
$
|
190
|
|
|
$
|
12,621
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Real Estate
|
|
Commercial and Industrial
|
|
Other Consumer
|
|
Total
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated for impairment
|
|
9,711
|
|
|
3,426
|
|
|
191
|
|
|
13,328
|
|
||||
Total
|
|
$
|
9,711
|
|
|
$
|
3,426
|
|
|
$
|
191
|
|
|
$
|
13,328
|
|
Loans receivable:
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
1,676
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
1,779
|
|
Collectively evaluated for impairment
|
|
1,138,143
|
|
|
231,841
|
|
|
23,794
|
|
|
1,393,778
|
|
||||
Total
|
|
$
|
1,139,819
|
|
|
$
|
231,944
|
|
|
$
|
23,794
|
|
|
$
|
1,395,557
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
1
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
94
|
|
Collectively evaluated for impairment
|
|
9,103
|
|
|
3,784
|
|
|
186
|
|
|
13,073
|
|
||||
Total
|
|
$
|
9,104
|
|
|
$
|
3,877
|
|
|
$
|
186
|
|
|
$
|
13,167
|
|
Loans receivable:
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
1,156
|
|
|
$
|
320
|
|
|
$
|
—
|
|
|
$
|
1,476
|
|
Collectively evaluated for impairment
|
|
1,090,331
|
|
|
220,954
|
|
|
25,921
|
|
|
1,337,206
|
|
||||
Total
|
|
$
|
1,091,487
|
|
|
$
|
221,274
|
|
|
$
|
25,921
|
|
|
$
|
1,338,682
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial property
|
|
$
|
747,877
|
|
|
$
|
—
|
|
|
$
|
649
|
|
|
$
|
—
|
|
|
$
|
748,526
|
|
Residential property
|
|
240,630
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
240,630
|
|
|||||
SBA property
|
|
121,684
|
|
|
73
|
|
|
6,451
|
|
|
—
|
|
|
128,208
|
|
|||||
Construction
|
|
19,228
|
|
|
3,227
|
|
|
—
|
|
|
—
|
|
|
22,455
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
105,638
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
105,651
|
|
|||||
Commercial lines of credit
|
|
85,197
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85,197
|
|
|||||
SBA commercial term
|
|
24,378
|
|
|
54
|
|
|
330
|
|
|
—
|
|
|
24,762
|
|
|||||
Trade finance
|
|
16,334
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,334
|
|
|||||
Other consumer loans
|
|
23,753
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
23,794
|
|
|||||
Total
|
|
$
|
1,384,719
|
|
|
$
|
3,354
|
|
|
$
|
7,484
|
|
|
$
|
—
|
|
|
$
|
1,395,557
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial property
|
|
$
|
708,742
|
|
|
$
|
—
|
|
|
$
|
667
|
|
|
$
|
—
|
|
|
$
|
709,409
|
|
Residential property
|
|
233,514
|
|
|
—
|
|
|
302
|
|
|
—
|
|
|
233,816
|
|
|||||
SBA property
|
|
115,543
|
|
|
74
|
|
|
5,322
|
|
|
—
|
|
|
120,939
|
|
|||||
Construction
|
|
24,325
|
|
|
2,998
|
|
|
—
|
|
|
—
|
|
|
27,323
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
102,106
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
102,133
|
|
|||||
Commercial lines of credit
|
|
79,874
|
|
|
599
|
|
|
—
|
|
|
—
|
|
|
80,473
|
|
|||||
SBA commercial term
|
|
26,616
|
|
|
—
|
|
|
531
|
|
|
—
|
|
|
27,147
|
|
|||||
Trade finance
|
|
11,521
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,521
|
|
|||||
Other consumer loans
|
|
25,905
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
25,921
|
|
|||||
Total
|
|
$
|
1,328,146
|
|
|
$
|
3,671
|
|
|
$
|
6,865
|
|
|
$
|
—
|
|
|
$
|
1,338,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Still Accruing
|
|
|
|
|
||||||||||||||
($ in thousands)
|
|
30 to 59 Days
Past Due
|
|
60 to 89 Days
Past Due
|
|
90 or More Days Past Due
|
|
Nonaccrual
|
|
Total Past Due and Nonaccrual
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SBA property
|
|
$
|
375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,372
|
|
|
$
|
1,747
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SBA commercial term
|
|
343
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
359
|
|
|||||
Other consumer loans
|
|
86
|
|
|
5
|
|
|
—
|
|
|
41
|
|
|
132
|
|
|||||
Total
|
|
$
|
804
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
1,429
|
|
|
$
|
2,238
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential property
|
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
302
|
|
|
$
|
397
|
|
SBA property
|
|
183
|
|
|
—
|
|
|
—
|
|
|
540
|
|
|
723
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SBA commercial term
|
|
—
|
|
|
—
|
|
|
—
|
|
|
203
|
|
|
203
|
|
|||||
Other consumer loans
|
|
90
|
|
|
9
|
|
|
—
|
|
|
16
|
|
|
115
|
|
|||||
Total
|
|
$
|
368
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
1,061
|
|
|
$
|
1,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With No Allowance Recorded
|
|
With an Allowance Recorded
|
||||||||||||||||
($ in thousands)
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SBA property
|
|
$
|
1,676
|
|
|
$
|
1,733
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
47
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SBA commercial term
|
|
56
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
1,779
|
|
|
$
|
1,850
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential property
|
|
$
|
302
|
|
|
$
|
303
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
SBA property
|
|
802
|
|
|
854
|
|
|
52
|
|
|
50
|
|
|
1
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
68
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SBA commercial term
|
|
73
|
|
|
99
|
|
|
179
|
|
|
189
|
|
|
93
|
|
|||||
Total
|
|
$
|
1,245
|
|
|
$
|
1,325
|
|
|
$
|
231
|
|
|
$
|
239
|
|
|
$
|
94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
($ in thousands)
|
|
Average Recorded Investment
|
|
Interest
Income
|
|
Average Recorded Investment
|
|
Interest
Income
|
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial property
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
275
|
|
|
$
|
—
|
|
Residential property
|
|
—
|
|
|
—
|
|
|
365
|
|
|
—
|
|
||||
SBA property
|
|
1,666
|
|
|
6
|
|
|
1,538
|
|
|
5
|
|
||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial term
|
|
52
|
|
|
1
|
|
|
136
|
|
|
2
|
|
||||
Commercial lines of credit
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
||||
SBA commercial term
|
|
59
|
|
|
1
|
|
|
567
|
|
|
1
|
|
||||
Total
|
|
$
|
1,777
|
|
|
$
|
8
|
|
|
$
|
2,901
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
($ in thousands)
|
|
Average Recorded Investment
|
|
Interest
Income
|
|
Average Recorded Investment
|
|
Interest
Income
|
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial property
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
295
|
|
|
$
|
—
|
|
Residential property
|
|
76
|
|
|
—
|
|
|
547
|
|
|
—
|
|
||||
SBA property
|
|
1,507
|
|
|
12
|
|
|
1,362
|
|
|
10
|
|
||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial term
|
|
57
|
|
|
2
|
|
|
162
|
|
|
5
|
|
||||
Commercial lines of credit
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||
SBA commercial term
|
|
150
|
|
|
2
|
|
|
509
|
|
|
6
|
|
||||
Total
|
|
$
|
1,790
|
|
|
$
|
16
|
|
|
$
|
2,888
|
|
|
$
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest income that would have been recognized had impaired loans performed in accordance with their original terms
|
|
$
|
32
|
|
|
$
|
47
|
|
|
$
|
64
|
|
|
$
|
128
|
|
Less: interest income recognized on impaired loans on a cash basis
|
|
(8
|
)
|
|
(8
|
)
|
|
(16
|
)
|
|
(54
|
)
|
||||
Interest income foregone on impaired loans
|
|
$
|
24
|
|
|
$
|
39
|
|
|
$
|
48
|
|
|
$
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Accruing
|
|
Nonaccrual
|
|
Total
|
|
Accruing
|
|
Nonaccrual
|
|
Total
|
||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SBA property
|
|
$
|
304
|
|
|
$
|
131
|
|
|
$
|
435
|
|
|
$
|
315
|
|
|
$
|
—
|
|
|
$
|
315
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial term
|
|
47
|
|
|
—
|
|
|
47
|
|
|
68
|
|
|
—
|
|
|
68
|
|
||||||
SBA commercial term
|
|
40
|
|
|
—
|
|
|
40
|
|
|
49
|
|
|
131
|
|
|
180
|
|
||||||
Total
|
|
$
|
391
|
|
|
$
|
131
|
|
|
$
|
522
|
|
|
$
|
432
|
|
|
$
|
131
|
|
|
$
|
563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
($ in thousands)
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SBA property
(1)
|
|
1
|
|
|
$
|
131
|
|
|
$
|
131
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
1
|
|
|
$
|
131
|
|
|
$
|
131
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Modified by deferral of principal payment.
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
($ in thousands)
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SBA property
(1)
|
|
1
|
|
|
$
|
131
|
|
|
$
|
131
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
1
|
|
|
$
|
131
|
|
|
$
|
131
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Modified by deferral of principal payment.
|
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
($ in thousands)
|
|
Number of Loans
|
|
Recorded Investment at Date of Default
|
|
Number of Loans
|
|
Recorded Investment at Date of Default
|
||||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
||||||
SBA commercial term
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
233
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
233
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
($ in thousands)
|
|
Number of Loans
|
|
Recorded Investment at Date of Default
|
|
Number of Loans
|
|
Recorded Investment at Date of Default
|
||||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
||||||
SBA commercial term
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
233
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
233
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Real estate loans:
|
|
|
|
|
||||
Residential property
|
|
$
|
355
|
|
|
$
|
—
|
|
SBA property
|
|
—
|
|
|
5,481
|
|
||
Commercial and industrial loans:
|
|
|
|
|
||||
SBA commercial term
|
|
85
|
|
|
300
|
|
||
Total
|
|
$
|
440
|
|
|
$
|
5,781
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
||||||||||||
Carrying amount
|
|
$
|
204
|
|
|
$
|
6,094
|
|
|
$
|
932
|
|
|
$
|
244
|
|
|
$
|
6,349
|
|
|
$
|
1,073
|
|
Fair value
|
|
$
|
210
|
|
|
$
|
6,861
|
|
|
$
|
1,058
|
|
|
$
|
298
|
|
|
$
|
6,937
|
|
|
$
|
1,206
|
|
Discount rate
|
|
11.25
|
%
|
|
13.25
|
%
|
|
12.75
|
%
|
|
11.25
|
%
|
|
13.25
|
%
|
|
12.75
|
%
|
||||||
Prepayment speed
|
|
31.00
|
%
|
|
15.18
|
%
|
|
15.69
|
%
|
|
25.00
|
%
|
|
14.12
|
%
|
|
13.55
|
%
|
||||||
Weighted average remaining life
|
|
24.7 years
|
|
|
21.1 years
|
|
|
7.2 years
|
|
|
25.2 years
|
|
|
21.1 years
|
|
|
7.4 years
|
|
||||||
Underlying loans being serviced
|
|
$
|
38,487
|
|
|
$
|
379,345
|
|
|
$
|
86,262
|
|
|
$
|
45,728
|
|
|
$
|
367,856
|
|
|
$
|
93,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||||
($ in thousands)
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
||||||||||||
Balance at beginning of period
|
|
$
|
221
|
|
|
$
|
6,277
|
|
|
$
|
987
|
|
|
$
|
290
|
|
|
$
|
7,375
|
|
|
$
|
1,225
|
|
Additions
|
|
—
|
|
|
386
|
|
|
56
|
|
|
22
|
|
|
132
|
|
|
60
|
|
||||||
Amortization
|
|
(17
|
)
|
|
(569
|
)
|
|
(111
|
)
|
|
(27
|
)
|
|
(504
|
)
|
|
(120
|
)
|
||||||
Impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
||||||
Balance at end of period
|
|
$
|
204
|
|
|
$
|
6,094
|
|
|
$
|
932
|
|
|
$
|
285
|
|
|
$
|
6,940
|
|
|
$
|
1,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||||
($ in thousands)
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
||||||||||||
Balance at beginning of period
|
|
$
|
244
|
|
|
$
|
6,349
|
|
|
$
|
1,073
|
|
|
$
|
308
|
|
|
$
|
7,369
|
|
|
$
|
1,296
|
|
Additions
|
|
—
|
|
|
670
|
|
|
107
|
|
|
22
|
|
|
568
|
|
|
134
|
|
||||||
Amortization
|
|
(40
|
)
|
|
(925
|
)
|
|
(248
|
)
|
|
(45
|
)
|
|
(934
|
)
|
|
(265
|
)
|
||||||
Impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
||||||
Balance at end of period
|
|
$
|
204
|
|
|
$
|
6,094
|
|
|
$
|
932
|
|
|
$
|
285
|
|
|
$
|
6,940
|
|
|
$
|
1,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
Operating lease cost
(1)
|
|
$
|
649
|
|
|
$
|
1,273
|
|
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
|
||||
Operating cash flows from operating leases
|
|
—
|
|
|
—
|
|
||
Right of use assets obtained in exchange for lease obligations
|
|
1,523
|
|
|
1,588
|
|
||
|
|
|
|
|
(1)
|
Included in Occupancy and Equipment on the Consolidated Statements of Income. Operating lease cost for the three and
six
months ended
June 30, 2018
was under Topic 840.
|
($ in thousands)
|
|
June 30, 2019
|
||
Operating leases:
|
|
|
||
Operating lease assets
|
|
$
|
10,105
|
|
Operating lease liabilities
|
|
11,131
|
|
|
|
|
|
||
Weighted-average remaining lease term
|
|
5.4 years
|
|
|
Weighted-average discount rate
|
|
2.81
|
%
|
|
|
|
|
($ in thousands)
|
|
June 30, 2019
|
||
Maturities:
|
|
|
||
2019
|
|
$
|
1,347
|
|
2020
|
|
2,675
|
|
|
2021
|
|
2,283
|
|
|
2022
|
|
2,171
|
|
|
2023
|
|
1,828
|
|
|
After 2023
|
|
1,899
|
|
|
Total lease payment
|
|
12,203
|
|
|
Imputed Interest
|
|
(1,072
|
)
|
|
Present value of operating lease liabilities
|
|
$
|
11,131
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Unrealized gain (loss) on securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
(820
|
)
|
|
$
|
(2,248
|
)
|
|
$
|
(1,647
|
)
|
|
$
|
(1,223
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) arising during the period
|
|
1,638
|
|
|
(515
|
)
|
|
2,810
|
|
|
(1,960
|
)
|
||||
Tax effect of current period changes
|
|
(480
|
)
|
|
151
|
|
|
(825
|
)
|
|
571
|
|
||||
Total other comprehensive income (loss)
|
|
1,158
|
|
|
(364
|
)
|
|
1,985
|
|
|
(1,389
|
)
|
||||
Balance at end of period
|
|
$
|
338
|
|
|
$
|
(2,612
|
)
|
|
$
|
338
|
|
|
$
|
(2,612
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019
|
|||||||||||
($ in thousands except per share data)
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|
Weighted-Average Contractual Term
|
|
Aggregated Intrinsic Value
|
|||||
Outstanding at beginning of period
|
|
874,894
|
|
|
$
|
10.03
|
|
|
6.40 years
|
|
$
|
6,493
|
|
Exercised
|
|
(27,055
|
)
|
|
$
|
7.53
|
|
|
4.81 years
|
|
|
||
Balance at end of period
|
|
847,839
|
|
|
$
|
10.11
|
|
|
6.19 years
|
|
$
|
5,877
|
|
Exercisable at end of period
|
|
503,066
|
|
|
$
|
8.65
|
|
|
5.48 years
|
|
$
|
4,219
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|||||||||||
($ in thousands except per share data)
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|
Weighted-Average Contractual Term
|
|
Aggregated Intrinsic Value
|
|||||
Outstanding at beginning of period
|
|
898,291
|
|
|
$
|
9.81
|
|
|
6.55 years
|
|
$
|
5,243
|
|
Granted
|
|
10,000
|
|
|
$
|
17.47
|
|
|
10.00 years
|
|
|
||
Exercised
|
|
(60,452
|
)
|
|
$
|
6.95
|
|
|
4.66 years
|
|
|
||
Balance at end of period
|
|
847,839
|
|
|
$
|
10.11
|
|
|
6.19 years
|
|
$
|
5,877
|
|
Exercisable at end of period
|
|
503,066
|
|
|
$
|
8.65
|
|
|
5.48 years
|
|
$
|
4,219
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||||||||
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
||||||
Outstanding at beginning of period
|
|
344,773
|
|
|
$
|
12.23
|
|
|
347,274
|
|
|
$
|
12.17
|
|
Granted
|
|
—
|
|
|
$
|
—
|
|
|
10,000
|
|
|
$
|
17.47
|
|
Vested
|
|
—
|
|
|
$
|
—
|
|
|
(12,501
|
)
|
|
$
|
14.75
|
|
Balance at end of period
|
|
344,773
|
|
|
$
|
12.23
|
|
|
344,773
|
|
|
$
|
12.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands, except per share)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
6,601
|
|
|
$
|
4,762
|
|
|
$
|
13,165
|
|
|
$
|
11,026
|
|
Weighted-average common shares outstanding
|
|
16,017,089
|
|
|
13,432,775
|
|
|
16,008,325
|
|
|
13,425,557
|
|
||||
Basic earnings per share
|
|
$
|
0.41
|
|
|
$
|
0.35
|
|
|
$
|
0.82
|
|
|
$
|
0.82
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
6,601
|
|
|
$
|
4,762
|
|
|
$
|
13,165
|
|
|
$
|
11,026
|
|
Weighted-average commons shares outstanding
|
|
16,017,089
|
|
|
13,432,775
|
|
|
16,008,325
|
|
|
13,425,557
|
|
||||
Diluted effect of stock options
|
|
312,950
|
|
|
195,902
|
|
|
294,949
|
|
|
182,277
|
|
||||
Diluted weighted-average common shares outstanding
|
|
16,330,039
|
|
|
13,628,677
|
|
|
16,303,274
|
|
|
13,607,834
|
|
||||
Diluted earnings per share
|
|
$
|
0.40
|
|
|
$
|
0.35
|
|
|
$
|
0.81
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Commitments to extend credit
|
|
$
|
154,453
|
|
|
$
|
127,443
|
|
Standby letters of credit
|
|
2,363
|
|
|
2,998
|
|
||
Commercial letters of credit
|
|
532
|
|
|
477
|
|
||
Total
|
|
$
|
157,348
|
|
|
$
|
130,918
|
|
|
|
|
|
|
|
|
Actual
|
|
Minimum Capital Requirement
|
|
To Be Well Capitalized Under Prompt Corrective Provisions
|
|||||||||||||||
($ in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PCB Bancorp
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
$
|
222,131
|
|
|
16.20
|
%
|
|
$
|
61,710
|
|
|
4.5
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Total capital (to risk-weighted assets)
|
|
235,599
|
|
|
17.18
|
%
|
|
109,707
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital (to risk-weighted assets)
|
|
222,131
|
|
|
16.20
|
%
|
|
82,280
|
|
|
6.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital (to average assets)
|
|
222,131
|
|
|
12.74
|
%
|
|
69,725
|
|
|
4.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Pacific City Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
$
|
220,342
|
|
|
16.07
|
%
|
|
$
|
61,709
|
|
|
4.5
|
%
|
|
$
|
89,135
|
|
|
6.5
|
%
|
Total capital (to risk-weighted assets)
|
|
233,810
|
|
|
17.05
|
%
|
|
109,704
|
|
|
8.0
|
%
|
|
137,130
|
|
|
10.0
|
%
|
|||
Tier 1 capital (to risk-weighted assets)
|
|
220,342
|
|
|
16.07
|
%
|
|
82,278
|
|
|
6.0
|
%
|
|
109,704
|
|
|
8.0
|
%
|
|||
Tier 1 capital (to average assets)
|
|
220,342
|
|
|
12.64
|
%
|
|
69,723
|
|
|
4.0
|
%
|
|
87,154
|
|
|
5.0
|
%
|
|||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PCB Bancorp
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
$
|
210,871
|
|
|
16.28
|
%
|
|
$
|
58,273
|
|
|
4.5
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Total capital (to risk-weighted assets)
|
|
224,178
|
|
|
17.31
|
%
|
|
103,596
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital (to risk-weighted assets)
|
|
210,871
|
|
|
16.28
|
%
|
|
77,697
|
|
|
6.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital (to average assets)
|
|
210,871
|
|
|
12.60
|
%
|
|
66,930
|
|
|
4.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Pacific City Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
$
|
209,587
|
|
|
16.19
|
%
|
|
$
|
58,272
|
|
|
4.5
|
%
|
|
$
|
84,171
|
|
|
6.5
|
%
|
Total capital (to risk-weighted assets)
|
|
222,894
|
|
|
17.21
|
%
|
|
103,594
|
|
|
8.0
|
%
|
|
129,493
|
|
|
10.0
|
%
|
|||
Tier 1 capital (to risk-weighted assets)
|
|
209,587
|
|
|
16.19
|
%
|
|
77,696
|
|
|
6.0
|
%
|
|
103,594
|
|
|
8.0
|
%
|
|||
Tier 1 capital (to average assets)
|
|
209,587
|
|
|
12.53
|
%
|
|
66,929
|
|
|
4.0
|
%
|
|
83,661
|
|
|
5.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
||||||||
In scope of Topic 606
|
|
|
|
|
|
|
|
|
||||||||
Service charges and fees on deposits:
|
|
|
|
|
|
|
|
|
||||||||
Monthly service fees
|
|
$
|
29
|
|
|
$
|
27
|
|
|
$
|
57
|
|
|
$
|
52
|
|
Account analysis fees
|
|
242
|
|
|
241
|
|
|
469
|
|
|
476
|
|
||||
Non-sufficient funds charges
|
|
73
|
|
|
86
|
|
|
159
|
|
|
153
|
|
||||
Other deposit related fees
|
|
24
|
|
|
22
|
|
|
47
|
|
|
44
|
|
||||
Total service charges and fees on deposits
|
|
368
|
|
|
376
|
|
|
732
|
|
|
725
|
|
||||
Debit card fees
|
|
68
|
|
|
50
|
|
|
133
|
|
|
95
|
|
||||
Gain on sale of other real estate owned
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Wire transfer fees
|
|
126
|
|
|
122
|
|
|
235
|
|
|
226
|
|
||||
Other service charges
|
|
58
|
|
|
49
|
|
|
108
|
|
|
113
|
|
||||
Total noninterest income in-scope of Topic 606
|
|
$
|
620
|
|
|
$
|
597
|
|
|
$
|
1,208
|
|
|
$
|
1,162
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or For the Three Months Ended June 30,
|
|
As of or For the Six Months Ended June 30,
|
||||||||||||
($ in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Selected balance sheet data:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
133,285
|
|
|
$
|
168,646
|
|
|
$
|
133,285
|
|
|
$
|
168,646
|
|
Securities available-for-sale
|
|
142,539
|
|
|
132,106
|
|
|
142,539
|
|
|
132,106
|
|
||||
Securities held-to-maturity
|
|
22,685
|
|
|
20,390
|
|
|
22,685
|
|
|
20,390
|
|
||||
Loans held-for-sale
|
|
440
|
|
|
20,331
|
|
|
440
|
|
|
20,331
|
|
||||
Loans held-for-investment, net of deferred loan costs (fees)
|
|
1,395,557
|
|
|
1,254,856
|
|
|
1,395,557
|
|
|
1,254,856
|
|
||||
Allowance for loan losses
|
|
(13,328
|
)
|
|
(12,621
|
)
|
|
(13,328
|
)
|
|
(12,621
|
)
|
||||
Total assets
|
|
1,726,486
|
|
|
1,619,169
|
|
|
1,726,486
|
|
|
1,619,169
|
|
||||
Total deposits
|
|
1,446,526
|
|
|
1,427,245
|
|
|
1,446,526
|
|
|
1,427,245
|
|
||||
Shareholders’ equity
|
|
223,400
|
|
|
151,431
|
|
|
223,400
|
|
|
151,431
|
|
||||
Selected income statement data:
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
24,030
|
|
|
$
|
20,344
|
|
|
$
|
46,982
|
|
|
$
|
38,972
|
|
Interest expense
|
|
6,338
|
|
|
4,462
|
|
|
12,137
|
|
|
7,796
|
|
||||
Net interest income
|
|
17,692
|
|
|
15,882
|
|
|
34,845
|
|
|
31,176
|
|
||||
Provision for loan losses
|
|
394
|
|
|
425
|
|
|
309
|
|
|
520
|
|
||||
Noninterest income
|
|
3,054
|
|
|
2,273
|
|
|
5,463
|
|
|
5,635
|
|
||||
Noninterest expense
|
|
10,984
|
|
|
10,940
|
|
|
21,273
|
|
|
20,571
|
|
||||
Income before income taxes
|
|
9,368
|
|
|
6,790
|
|
|
18,726
|
|
|
15,720
|
|
||||
Income tax expense
|
|
2,767
|
|
|
2,028
|
|
|
5,561
|
|
|
4,694
|
|
||||
Net income
|
|
6,601
|
|
|
4,762
|
|
|
13,165
|
|
|
11,026
|
|
||||
Per share data:
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share, basic
|
|
$
|
0.41
|
|
|
$
|
0.35
|
|
|
$
|
0.82
|
|
|
$
|
0.82
|
|
Earnings per common share, diluted
|
|
0.40
|
|
|
0.35
|
|
|
0.81
|
|
|
0.81
|
|
||||
Book value per common share
(1)
|
|
13.98
|
|
|
11.27
|
|
|
13.98
|
|
|
11.27
|
|
||||
Cash dividends declared per common share
|
|
0.06
|
|
|
0.03
|
|
|
0.11
|
|
|
0.06
|
|
|
|
As of or For the Three Months Ended June 30,
|
|
As of or For the Six Months Ended June 30,
|
||||||||||||
($ in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Outstanding share data:
|
|
|
|
|
|
|
|
|
||||||||
Number of common shares outstanding
|
|
15,980,655
|
|
|
13,435,214
|
|
|
15,980,655
|
|
|
13,435,214
|
|
||||
Weighted-average common shares outstanding, basic
|
|
16,017,089
|
|
|
13,432,775
|
|
|
16,008,325
|
|
|
13,425,557
|
|
||||
Weighted-average common shares outstanding, diluted
|
|
16,330,039
|
|
|
13,628,677
|
|
|
16,303,274
|
|
|
13,607,834
|
|
||||
Selected performance ratios:
|
|
|
|
|
|
|
|
|
||||||||
Return on average assets
(2)
|
|
1.52
|
%
|
|
1.20
|
%
|
|
1.55
|
%
|
|
1.45
|
%
|
||||
Return on average shareholders' equity
(2)
|
|
12.01
|
%
|
|
12.74
|
%
|
|
12.22
|
%
|
|
15.07
|
%
|
||||
Dividend payout ratio
(3)
|
|
14.63
|
%
|
|
8.57
|
%
|
|
13.41
|
%
|
|
7.32
|
%
|
||||
Efficiency ratio
(4)
|
|
52.95
|
%
|
|
60.26
|
%
|
|
52.78
|
%
|
|
55.88
|
%
|
||||
Yield on average interest-earning assets
(2)
|
|
5.66
|
%
|
|
5.23
|
%
|
|
5.65
|
%
|
|
5.25
|
%
|
||||
Cost of average interest-bearing liabilities
(2)
|
|
2.17
|
%
|
|
1.60
|
%
|
|
2.11
|
%
|
|
1.48
|
%
|
||||
Net interest spread
(2)
|
|
3.49
|
%
|
|
3.63
|
%
|
|
3.54
|
%
|
|
3.77
|
%
|
||||
Net interest margin
(2), (5)
|
|
4.17
|
%
|
|
4.08
|
%
|
|
4.19
|
%
|
|
4.20
|
%
|
||||
Total loans to total deposits ratio
(6)
|
|
96.51
|
%
|
|
89.35
|
%
|
|
96.51
|
%
|
|
89.35
|
%
|
||||
Asset quality:
|
|
|
|
|
|
|
|
|
||||||||
Loans 30 to 89 days past due and still accruing
|
|
$
|
809
|
|
|
$
|
330
|
|
|
$
|
809
|
|
|
$
|
330
|
|
Nonperforming loans
(7)
|
|
1,429
|
|
|
2,026
|
|
|
1,429
|
|
|
2,026
|
|
||||
Nonperforming assets
(8)
|
|
1,824
|
|
|
2,026
|
|
|
1,824
|
|
|
2,026
|
|
||||
Net charge-offs
|
|
203
|
|
|
175
|
|
|
148
|
|
|
123
|
|
||||
Loans 30 to 89 days past due and still accruing to loans held-for-investment
|
|
0.06
|
%
|
|
0.03
|
%
|
|
0.06
|
%
|
|
0.03
|
%
|
||||
Nonperforming loans to loans held-for-investment
|
|
0.10
|
%
|
|
0.16
|
%
|
|
0.10
|
%
|
|
0.16
|
%
|
||||
Nonperforming loans to allowance for loan losses
|
|
10.72
|
%
|
|
16.05
|
%
|
|
10.72
|
%
|
|
16.05
|
%
|
||||
Nonperforming assets to total assets
|
|
0.11
|
%
|
|
0.13
|
%
|
|
0.11
|
%
|
|
0.13
|
%
|
||||
Allowance for loan losses to loans held-for-investment
|
|
0.96
|
%
|
|
1.01
|
%
|
|
0.96
|
%
|
|
1.01
|
%
|
||||
Allowance for loan losses to nonperforming loans
|
|
932.68
|
%
|
|
622.95
|
%
|
|
932.68
|
%
|
|
622.95
|
%
|
||||
Net charge-offs to average loans held-for-investment
(2)
|
|
0.06
|
%
|
|
0.06
|
%
|
|
0.02
|
%
|
|
0.02
|
%
|
||||
Capital ratios:
|
|
|
|
|
|
|
|
|
||||||||
Shareholders’ equity to total assets
|
|
12.94
|
%
|
|
9.35
|
%
|
|
12.94
|
%
|
|
9.35
|
%
|
||||
Average equity to average assets
|
|
12.65
|
%
|
|
9.41
|
%
|
|
12.66
|
%
|
|
9.64
|
%
|
||||
PCB Bancorp
|
|
|
|
|
|
|
|
|
||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
16.20
|
%
|
|
12.43
|
%
|
|
16.20
|
%
|
|
12.43
|
%
|
||||
Total capital (to risk-weighted assets)
|
|
17.18
|
%
|
|
13.46
|
%
|
|
17.18
|
%
|
|
13.46
|
%
|
||||
Tier 1 capital (to risk-weighted assets)
|
|
16.20
|
%
|
|
12.43
|
%
|
|
16.20
|
%
|
|
12.43
|
%
|
||||
Tier 1 capital (to average assets)
|
|
12.74
|
%
|
|
9.58
|
%
|
|
12.74
|
%
|
|
9.58
|
%
|
||||
Pacific City Bank
|
|
|
|
|
|
|
|
|
||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
16.07
|
%
|
|
12.37
|
%
|
|
16.07
|
%
|
|
12.37
|
%
|
||||
Total capital (to risk-weighted assets)
|
|
17.05
|
%
|
|
13.40
|
%
|
|
17.05
|
%
|
|
13.40
|
%
|
||||
Tier 1 capital (to risk-weighted assets)
|
|
16.07
|
%
|
|
12.37
|
%
|
|
16.07
|
%
|
|
12.37
|
%
|
||||
Tier 1 capital (to average assets)
|
|
12.64
|
%
|
|
9.53
|
%
|
|
12.64
|
%
|
|
9.53
|
%
|
||||
|
|
|
|
|
|
|
|
|
(1)
|
Shareholders’ equity divided by common shares outstanding.
|
(2)
|
Annualized.
|
(3)
|
Dividends declared per common share divided by basic earnings per common share.
|
(4)
|
Noninterest expenses divided by the sum of net interest income and noninterest income.
|
(5)
|
Net interest income divided by average total interest-earning assets.
|
(6)
|
Total loans include both loans held-for-sale and loans held-for-investment, net of unearned loan costs (fees).
|
(7)
|
Nonperforming loans include nonaccrual loans and loans past due 90 days or more and still accruing.
|
(8)
|
Nonperforming assets include nonperforming loans and other real estate owned.
|
•
|
Net income totaled
$6.6 million
or
$0.40
per diluted common share for the three months ended
June 30, 2019
;
|
•
|
Total assets were
$1.73 billion
at
June 30, 2019
, an increase of
$29.5 million
, or
1.7%
, from
$1.70 billion
at
December 31, 2018
;
|
•
|
Loans held-for-investment, net of deferred costs (fees), were
$1.40 billion
at
June 30, 2019
, an increase of
$56.9 million
, or
4.2%
, from
$1.34 billion
at
December 31, 2018
;
|
•
|
Total deposits were
$1.45 billion
at
June 30, 2019
, an increase of
$2.8 million
, or
0.2%
, from
$1.44 billion
at
December 31, 2018
;
|
•
|
The Company repurchased 57,551 shares of its common stock totaling $974 thousand under the publicly announced $6.5 million share repurchase program; and
|
•
|
The Company declared an increased cash dividend of $0.06 per common share.
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
($ in thousands)
|
|
Average Balance
|
|
Interest
|
|
Yield/ Cost
(6)
|
|
Average Balance
|
|
Interest
|
|
Yield/ Cost
(6)
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans
(1)
|
|
$
|
1,378,910
|
|
|
$
|
21,969
|
|
|
6.39
|
%
|
|
$
|
1,236,075
|
|
|
$
|
18,610
|
|
|
6.04
|
%
|
Mortgage backed securities
|
|
87,787
|
|
|
559
|
|
|
2.55
|
%
|
|
65,708
|
|
|
378
|
|
|
2.31
|
%
|
||||
Collateralized mortgage obligation
|
|
53,027
|
|
|
325
|
|
|
2.46
|
%
|
|
52,455
|
|
|
309
|
|
|
2.36
|
%
|
||||
SBA loan pool securities
|
|
21,297
|
|
|
140
|
|
|
2.64
|
%
|
|
23,212
|
|
|
141
|
|
|
2.44
|
%
|
||||
Municipal securities - tax exempt
(2)
|
|
5,880
|
|
|
38
|
|
|
2.59
|
%
|
|
6,552
|
|
|
41
|
|
|
2.51
|
%
|
||||
Interest-bearing deposits in other financial institutions
|
|
146,527
|
|
|
874
|
|
|
2.39
|
%
|
|
168,386
|
|
|
754
|
|
|
1.80
|
%
|
||||
FHLB and other bank stock
|
|
8,134
|
|
|
125
|
|
|
6.16
|
%
|
|
7,229
|
|
|
111
|
|
|
6.16
|
%
|
||||
Total interest-earning assets
|
|
1,701,562
|
|
|
24,030
|
|
|
5.66
|
%
|
|
1,559,617
|
|
|
20,344
|
|
|
5.23
|
%
|
||||
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
18,342
|
|
|
|
|
|
|
$
|
18,530
|
|
|
|
|
|
||||||
Allowances for loan losses
|
|
(13,163
|
)
|
|
|
|
|
|
(12,446
|
)
|
|
|
|
|
||||||||
Other assets
|
|
35,843
|
|
|
|
|
|
|
27,460
|
|
|
|
|
|
||||||||
Total noninterest earning assets
|
|
41,022
|
|
|
|
|
|
|
33,544
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
1,742,584
|
|
|
|
|
|
|
$
|
1,593,161
|
|
|
|
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW and money market accounts
|
|
$
|
323,285
|
|
|
1,339
|
|
|
1.66
|
%
|
|
$
|
279,515
|
|
|
773
|
|
|
1.11
|
%
|
||
Savings
|
|
9,146
|
|
|
14
|
|
|
0.61
|
%
|
|
8,739
|
|
|
6
|
|
|
0.28
|
%
|
||||
Time deposits
|
|
811,247
|
|
|
4,847
|
|
|
2.40
|
%
|
|
790,430
|
|
|
3,513
|
|
|
1.78
|
%
|
||||
Borrowings
|
|
30,166
|
|
|
138
|
|
|
1.83
|
%
|
|
39,782
|
|
|
170
|
|
|
1.71
|
%
|
||||
Total interest-bearing liabilities
|
|
1,173,844
|
|
|
6,338
|
|
|
2.17
|
%
|
|
1,118,466
|
|
|
4,462
|
|
|
1.60
|
%
|
||||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
326,813
|
|
|
|
|
|
|
315,232
|
|
|
|
|
|
||||||||
Other liabilities
|
|
21,441
|
|
|
|
|
|
|
9,533
|
|
|
|
|
|
||||||||
Total noninterest-bearing liabilities
|
|
348,254
|
|
|
|
|
|
|
324,765
|
|
|
|
|
|
||||||||
Total liabilities
|
|
1,522,098
|
|
|
|
|
|
|
1,443,231
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
|
220,486
|
|
|
|
|
|
|
149,930
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
|
$
|
1,742,584
|
|
|
|
|
|
|
$
|
1,593,161
|
|
|
|
|
|
||||||
Net interest income
|
|
|
|
$
|
17,692
|
|
|
|
|
|
|
$
|
15,882
|
|
|
|
||||||
Net interest spread
(3)
|
|
|
|
|
|
3.49
|
%
|
|
|
|
|
|
3.63
|
%
|
||||||||
Net interest margin
(4)
|
|
|
|
|
|
4.17
|
%
|
|
|
|
|
|
4.08
|
%
|
||||||||
Cost of funds
(5)
|
|
|
|
|
|
1.69
|
%
|
|
|
|
|
|
1.25
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Average balance includes both loans held-for-sale and loans held-for-investment, as well as nonaccrual loans. Net amortization of deferred loan fees (cost) of
$131 thousand
and
$133 thousand
are included in the interest income for the three months ended
June 30, 2019
and
2018
, respectively.
|
(2)
|
The yield on municipal bonds has not been computed on a tax-equivalent basis.
|
(3)
|
Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
|
(4)
|
Net interest margin is calculated by dividing net interest income by average interest-earning assets.
|
(5)
|
Cost of funds is calculated by dividing annualized interest expense on total interest-bearing liabilities by the sum of average total interest-bearing liabilities and noninterest-bearing demand deposits.
|
(6)
|
Annualized.
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
($ in thousands)
|
|
Average Balance
|
|
Interest
|
|
Yield/ Cost
(6)
|
|
Average Balance
|
|
Interest
|
|
Yield/ Cost
(6)
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans
(1)
|
|
$
|
1,360,641
|
|
|
$
|
42,903
|
|
|
6.36
|
%
|
|
$
|
1,228,015
|
|
|
$
|
36,050
|
|
|
5.92
|
%
|
Mortgage backed securities
|
|
86,164
|
|
|
1,108
|
|
|
2.59
|
%
|
|
66,591
|
|
|
769
|
|
|
2.33
|
%
|
||||
Collateralized mortgage obligation
|
|
53,962
|
|
|
683
|
|
|
2.55
|
%
|
|
51,719
|
|
|
589
|
|
|
2.30
|
%
|
||||
SBA loan pool securities
|
|
21,717
|
|
|
287
|
|
|
2.66
|
%
|
|
23,778
|
|
|
278
|
|
|
2.36
|
%
|
||||
Municipal securities - tax exempt
(2)
|
|
5,884
|
|
|
77
|
|
|
2.64
|
%
|
|
6,567
|
|
|
81
|
|
|
2.49
|
%
|
||||
Interest-bearing deposits in other financial institutions
|
|
139,816
|
|
|
1,666
|
|
|
2.40
|
%
|
|
113,196
|
|
|
976
|
|
|
1.74
|
%
|
||||
FHLB and other bank stock
|
|
7,785
|
|
|
258
|
|
|
6.68
|
%
|
|
6,911
|
|
|
229
|
|
|
6.68
|
%
|
||||
Total interest-earning assets
|
|
1,675,969
|
|
|
46,982
|
|
|
5.65
|
%
|
|
1,496,777
|
|
|
38,972
|
|
|
5.25
|
%
|
||||
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
18,509
|
|
|
|
|
|
|
$
|
19,425
|
|
|
|
|
|
||||||
Allowances for loan losses
|
|
(13,141
|
)
|
|
|
|
|
|
(12,406
|
)
|
|
|
|
|
||||||||
Other assets
|
|
35,215
|
|
|
|
|
|
|
27,105
|
|
|
|
|
|
||||||||
Total noninterest earning assets
|
|
40,583
|
|
|
|
|
|
|
34,124
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
1,716,552
|
|
|
|
|
|
|
$
|
1,530,901
|
|
|
|
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW and money market accounts
|
|
$
|
308,348
|
|
|
2,471
|
|
|
1.62
|
%
|
|
$
|
288,680
|
|
|
1,533
|
|
|
1.07
|
%
|
||
Savings
|
|
8,810
|
|
|
22
|
|
|
0.50
|
%
|
|
8,686
|
|
|
12
|
|
|
0.28
|
%
|
||||
Time deposits
|
|
812,583
|
|
|
9,372
|
|
|
2.33
|
%
|
|
722,654
|
|
|
5,913
|
|
|
1.65
|
%
|
||||
Borrowings
|
|
30,120
|
|
|
272
|
|
|
1.82
|
%
|
|
39,890
|
|
|
338
|
|
|
1.71
|
%
|
||||
Total interest-bearing liabilities
|
|
1,159,861
|
|
|
12,137
|
|
|
2.11
|
%
|
|
1,059,910
|
|
|
7,796
|
|
|
1.48
|
%
|
||||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
317,493
|
|
|
|
|
|
|
314,450
|
|
|
|
|
|
||||||||
Other liabilities
|
|
21,880
|
|
|
|
|
|
|
8,962
|
|
|
|
|
|
||||||||
Total noninterest-bearing liabilities
|
|
339,373
|
|
|
|
|
|
|
323,412
|
|
|
|
|
|
||||||||
Total liabilities
|
|
1,499,234
|
|
|
|
|
|
|
1,383,322
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
|
217,318
|
|
|
|
|
|
|
147,579
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
|
$
|
1,716,552
|
|
|
|
|
|
|
$
|
1,530,901
|
|
|
|
|
|
||||||
Net interest income
|
|
|
|
$
|
34,845
|
|
|
|
|
|
|
$
|
31,176
|
|
|
|
||||||
Net interest spread
(3)
|
|
|
|
|
|
3.54
|
%
|
|
|
|
|
|
3.77
|
%
|
||||||||
Net interest margin
(4)
|
|
|
|
|
|
4.19
|
%
|
|
|
|
|
|
4.20
|
%
|
||||||||
Cost of funds
(5)
|
|
|
|
|
|
1.66
|
%
|
|
|
|
|
|
1.14
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Average balance includes both loans held-for-sale and loans held-for-investment, as well as nonaccrual loans. Net amortization of deferred loan fees (cost) of
$209 thousand
and
$262 thousand
are included in the interest income for the
six
months ended
June 30, 2019
and
2018
, respectively.
|
(2)
|
The yield on municipal bonds has not been computed on a tax-equivalent basis.
|
(3)
|
Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
|
(4)
|
Net interest margin is calculated by dividing net interest income by average interest-earning assets.
|
(5)
|
Cost of funds is calculated by dividing annualized interest expense on total interest-bearing liabilities by the sum of average total interest-bearing liabilities and noninterest-bearing demand deposits.
|
(6)
|
Annualized.
|
|
|
Three Months Ended June 30, 2019 vs. 2018
|
|
Six Months Ended June 30, 2019 vs. 2018
|
||||||||||||||||||||
|
|
Increase (Decrease) Due to
|
|
Net Increase (Decrease)
|
|
Increase (Decrease) Due to
|
|
Net Increase (Decrease)
|
||||||||||||||||
($ in thousands)
|
|
Volume
|
|
Rate
|
|
|
Volume
|
|
Rate
|
|
||||||||||||||
Interest earned on:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans
|
|
$
|
2,150
|
|
|
$
|
1,209
|
|
|
$
|
3,359
|
|
|
$
|
3,893
|
|
|
$
|
2,960
|
|
|
$
|
6,853
|
|
Investment securities
|
|
118
|
|
|
75
|
|
|
193
|
|
|
220
|
|
|
218
|
|
|
438
|
|
||||||
Other interest-earning assets
|
|
(103
|
)
|
|
237
|
|
|
134
|
|
|
276
|
|
|
443
|
|
|
719
|
|
||||||
Total interest income
|
|
2,165
|
|
|
1,521
|
|
|
3,686
|
|
|
4,389
|
|
|
3,621
|
|
|
8,010
|
|
||||||
Interest incurred on:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings, NOW, and money market deposits
|
|
119
|
|
|
455
|
|
|
574
|
|
|
103
|
|
|
845
|
|
|
948
|
|
||||||
Time deposits
|
|
93
|
|
|
1,241
|
|
|
1,334
|
|
|
736
|
|
|
2,723
|
|
|
3,459
|
|
||||||
Borrowings
|
|
(41
|
)
|
|
9
|
|
|
(32
|
)
|
|
(83
|
)
|
|
17
|
|
|
(66
|
)
|
||||||
Total interest expense
|
|
171
|
|
|
1,705
|
|
|
1,876
|
|
|
756
|
|
|
3,585
|
|
|
4,341
|
|
||||||
Change in net interest income
|
|
$
|
1,994
|
|
|
$
|
(184
|
)
|
|
$
|
1,810
|
|
|
$
|
3,633
|
|
|
$
|
36
|
|
|
$
|
3,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and fees on loans
|
|
$
|
21,969
|
|
|
$
|
18,610
|
|
|
$
|
3,359
|
|
|
18.0
|
%
|
Interest on tax-exempt investment securities
|
|
38
|
|
|
41
|
|
|
(3
|
)
|
|
(7.3
|
)%
|
|||
Interest on investment securities
|
|
1,024
|
|
|
828
|
|
|
196
|
|
|
23.7
|
%
|
|||
Interest and dividend on other interest-earning assets
|
|
999
|
|
|
865
|
|
|
134
|
|
|
15.5
|
%
|
|||
Total interest income
|
|
24,030
|
|
|
20,344
|
|
|
3,686
|
|
|
18.1
|
%
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||
Interest on deposits
|
|
6,200
|
|
|
4,292
|
|
|
1,908
|
|
|
44.5
|
%
|
|||
Interest on borrowings
|
|
138
|
|
|
170
|
|
|
(32
|
)
|
|
(18.8
|
)%
|
|||
Total interest expense
|
|
6,338
|
|
|
4,462
|
|
|
1,876
|
|
|
42.0
|
%
|
|||
Net interest income
|
|
$
|
17,692
|
|
|
$
|
15,882
|
|
|
$
|
1,810
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|||||||
Interest and fees on loans
|
|
$
|
42,903
|
|
|
$
|
36,050
|
|
|
$
|
6,853
|
|
|
19.0
|
%
|
Interest on tax-exempt investment securities
|
|
77
|
|
|
81
|
|
|
(4
|
)
|
|
(4.9
|
)%
|
|||
Interest on investment securities
|
|
2,078
|
|
|
1,636
|
|
|
442
|
|
|
27.0
|
%
|
|||
Interest and dividend on other interest-earning assets
|
|
1,924
|
|
|
1,205
|
|
|
719
|
|
|
59.7
|
%
|
|||
Total interest income
|
|
46,982
|
|
|
38,972
|
|
|
8,010
|
|
|
20.6
|
%
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|||||||
Interest on deposits
|
|
11,865
|
|
|
7,458
|
|
|
4,407
|
|
|
59.1
|
%
|
|||
Interest on borrowings
|
|
272
|
|
|
338
|
|
|
(66
|
)
|
|
(19.5
|
)%
|
|||
Total interest expense
|
|
12,137
|
|
|
7,796
|
|
|
4,341
|
|
|
55.7
|
%
|
|||
Net interest income
|
|
$
|
34,845
|
|
|
$
|
31,176
|
|
|
$
|
3,669
|
|
|
11.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Service charges and fees on deposits
|
|
$
|
368
|
|
|
$
|
376
|
|
|
$
|
(8
|
)
|
|
(2.1
|
)%
|
Loan servicing income
|
|
492
|
|
|
585
|
|
|
(93
|
)
|
|
(15.9
|
)%
|
|||
Gain on sale of loans
|
|
1,891
|
|
|
1,033
|
|
|
858
|
|
|
83.1
|
%
|
|||
Other income
|
|
303
|
|
|
279
|
|
|
24
|
|
|
8.6
|
%
|
|||
Total noninterest income
|
|
$
|
3,054
|
|
|
$
|
2,273
|
|
|
$
|
781
|
|
|
34.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Service charges and fees on deposits
|
|
$
|
732
|
|
|
$
|
725
|
|
|
$
|
7
|
|
|
1.0
|
%
|
Loan servicing income
|
|
1,123
|
|
|
1,211
|
|
|
(88
|
)
|
|
(7.3
|
)%
|
|||
Gain on sale of loans
|
|
3,011
|
|
|
3,149
|
|
|
(138
|
)
|
|
(4.4
|
)%
|
|||
Other income
|
|
597
|
|
|
550
|
|
|
47
|
|
|
8.5
|
%
|
|||
Total noninterest income
|
|
$
|
5,463
|
|
|
$
|
5,635
|
|
|
$
|
(172
|
)
|
|
(3.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Salaries and employee benefits
|
|
$
|
6,600
|
|
|
$
|
6,153
|
|
|
$
|
447
|
|
|
7.3
|
%
|
Occupancy and equipment
|
|
1,407
|
|
|
1,246
|
|
|
161
|
|
|
12.9
|
%
|
|||
Professional fees
|
|
686
|
|
|
988
|
|
|
(302
|
)
|
|
(30.6
|
)%
|
|||
Marketing and business promotion
|
|
529
|
|
|
541
|
|
|
(12
|
)
|
|
(2.2
|
)%
|
|||
Data processing
|
|
338
|
|
|
295
|
|
|
43
|
|
|
14.6
|
%
|
|||
Director fees and expenses
|
|
185
|
|
|
211
|
|
|
(26
|
)
|
|
(12.3
|
)%
|
|||
Regulatory assessments
|
|
309
|
|
|
145
|
|
|
164
|
|
|
113.1
|
%
|
|||
Other expenses
|
|
930
|
|
|
1,361
|
|
|
(431
|
)
|
|
(31.7
|
)%
|
|||
Total noninterest expense
|
|
$
|
10,984
|
|
|
$
|
10,940
|
|
|
$
|
44
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Salaries and employee benefits
|
|
$
|
13,222
|
|
|
$
|
12,399
|
|
|
$
|
823
|
|
|
6.6
|
%
|
Occupancy and equipment
|
|
2,720
|
|
|
2,390
|
|
|
330
|
|
|
13.8
|
%
|
|||
Professional fees
|
|
1,444
|
|
|
1,511
|
|
|
(67
|
)
|
|
(4.4
|
)%
|
|||
Marketing and business promotion
|
|
757
|
|
|
929
|
|
|
(172
|
)
|
|
(18.5
|
)%
|
|||
Data processing
|
|
656
|
|
|
597
|
|
|
59
|
|
|
9.9
|
%
|
|||
Director fees and expenses
|
|
374
|
|
|
441
|
|
|
(67
|
)
|
|
(15.2
|
)%
|
|||
Regulatory assessments
|
|
425
|
|
|
277
|
|
|
148
|
|
|
53.4
|
%
|
|||
Other expenses
|
|
1,675
|
|
|
2,027
|
|
|
(352
|
)
|
|
(17.4
|
)%
|
|||
Total noninterest expense
|
|
$
|
21,273
|
|
|
$
|
20,571
|
|
|
$
|
702
|
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
|
Unrealized Gain (Loss)
|
|
Amortized Cost
|
|
Fair Value
|
|
Unrealized Gain (Loss)
|
||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities
|
|
$
|
68,067
|
|
|
$
|
68,497
|
|
|
$
|
430
|
|
|
$
|
68,975
|
|
|
$
|
67,921
|
|
|
$
|
(1,054
|
)
|
Residential collateralized mortgage obligations
|
|
52,406
|
|
|
52,121
|
|
|
(285
|
)
|
|
56,625
|
|
|
55,649
|
|
|
(976
|
)
|
||||||
SBA loan pool securities
|
|
21,019
|
|
|
21,131
|
|
|
112
|
|
|
23,144
|
|
|
22,632
|
|
|
(512
|
)
|
||||||
Municipal bonds
|
|
774
|
|
|
790
|
|
|
16
|
|
|
784
|
|
|
789
|
|
|
5
|
|
||||||
Total securities available-for-sale
|
|
$
|
142,266
|
|
|
$
|
142,539
|
|
|
$
|
273
|
|
|
$
|
149,528
|
|
|
$
|
146,991
|
|
|
$
|
(2,537
|
)
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
17,601
|
|
|
17,449
|
|
|
(152
|
)
|
|
16,659
|
|
|
16,057
|
|
|
(602
|
)
|
||||||
Municipal bonds
|
|
5,084
|
|
|
5,364
|
|
|
280
|
|
|
5,101
|
|
|
5,095
|
|
|
(6
|
)
|
||||||
Total securities held-to-maturity
|
|
$
|
22,685
|
|
|
$
|
22,813
|
|
|
$
|
128
|
|
|
$
|
21,760
|
|
|
$
|
21,152
|
|
|
$
|
(608
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Within One Year
|
|
More than One Year through Five Years
|
|
More than Five Years through Ten Years
|
|
More than Ten Years
|
|
Total
|
|||||||||||||||||||||||||
($ in thousands)
|
|
Amortized Cost
|
|
Weighted-Average Yield
|
|
Amortized Cost
|
|
Weighted-Average Yield
|
|
Amortized Cost
|
|
Weighted-Average Yield
|
|
Amortized Cost
|
|
Weighted-Average Yield
|
|
Amortized Cost
|
|
Weighted-Average Yield
|
|||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage-backed securities
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
1,096
|
|
|
1.54
|
%
|
|
$
|
13,293
|
|
|
1.85
|
%
|
|
$
|
53,678
|
|
|
2.36
|
%
|
|
$
|
68,067
|
|
|
2.25
|
%
|
Residential collateralized mortgage obligations
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
11,424
|
|
|
2.41
|
%
|
|
40,982
|
|
|
2.28
|
%
|
|
52,406
|
|
|
2.31
|
%
|
|||||
SBA loan pool securities
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
4,024
|
|
|
2.74
|
%
|
|
16,995
|
|
|
2.51
|
%
|
|
21,019
|
|
|
2.55
|
%
|
|||||
Municipal bonds
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
774
|
|
|
2.70
|
%
|
|
—
|
|
|
—
|
%
|
|
774
|
|
|
2.70
|
%
|
|||||
Total securities available-for-sale
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
1,096
|
|
|
1.54
|
%
|
|
$
|
29,515
|
|
|
2.21
|
%
|
|
$
|
111,655
|
|
|
2.36
|
%
|
|
$
|
142,266
|
|
|
2.32
|
%
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
914
|
|
|
1.82
|
%
|
|
$
|
1,312
|
|
|
1.84
|
%
|
|
$
|
15,375
|
|
|
2.53
|
%
|
|
$
|
17,601
|
|
|
2.44
|
%
|
Municipal bonds
|
|
131
|
|
|
1.53
|
%
|
|
1,424
|
|
|
2.65
|
%
|
|
1,208
|
|
|
2.93
|
%
|
|
2,321
|
|
|
4.83
|
%
|
|
5,084
|
|
|
3.68
|
%
|
|||||
Total securities held-to-maturity
|
|
$
|
131
|
|
|
1.53
|
%
|
|
$
|
2,338
|
|
|
2.32
|
%
|
|
$
|
2,520
|
|
|
2.36
|
%
|
|
$
|
17,696
|
|
|
2.83
|
%
|
|
$
|
22,685
|
|
|
2.72
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Real estate loans:
|
|
|
|
|
||||
Residential property
|
|
$
|
355
|
|
|
$
|
—
|
|
SBA property
|
|
—
|
|
|
5,481
|
|
||
Commercial and industrial loans:
|
|
|
|
|
||||
SBA commercial term
|
|
85
|
|
|
300
|
|
||
Total
|
|
$
|
440
|
|
|
$
|
5,781
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
($ in thousands)
|
|
Amount
|
|
Percentage to Total
|
|
Amount
|
|
Percentage to Total
|
||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
||||||
Commercial property
|
|
$
|
748,526
|
|
|
53.6
|
%
|
|
$
|
709,409
|
|
|
53.1
|
%
|
Residential property
|
|
240,630
|
|
|
17.2
|
%
|
|
233,816
|
|
|
17.5
|
%
|
||
SBA property
|
|
128,208
|
|
|
9.2
|
%
|
|
120,939
|
|
|
9.0
|
%
|
||
Construction
|
|
22,455
|
|
|
1.6
|
%
|
|
27,323
|
|
|
2.0
|
%
|
||
Total real estate loans
|
|
1,139,819
|
|
|
81.6
|
%
|
|
1,091,487
|
|
|
81.6
|
%
|
||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
||||||
Commercial term
|
|
105,651
|
|
|
7.6
|
%
|
|
102,133
|
|
|
7.6
|
%
|
||
Commercial lines of credit
|
|
85,197
|
|
|
6.1
|
%
|
|
80,473
|
|
|
6.0
|
%
|
||
SBA commercial term
|
|
24,762
|
|
|
1.8
|
%
|
|
27,147
|
|
|
2.0
|
%
|
||
Trade finance
|
|
16,334
|
|
|
1.2
|
%
|
|
11,521
|
|
|
0.9
|
%
|
||
Total commercial and industrial loans
|
|
231,944
|
|
|
16.7
|
%
|
|
221,274
|
|
|
16.5
|
%
|
||
Consumer loans
|
|
23,794
|
|
|
1.7
|
%
|
|
25,921
|
|
|
1.9
|
%
|
||
Loans held-for-investment
|
|
1,395,557
|
|
|
100.0
|
%
|
|
1,338,682
|
|
|
100.0
|
%
|
||
Allowance for loan losses
|
|
(13,328
|
)
|
|
|
|
(13,167
|
)
|
|
|
||||
Net loans held-for-investment
|
|
$
|
1,382,229
|
|
|
|
|
$
|
1,325,515
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
|
$
|
13,137
|
|
|
$
|
12,371
|
|
|
$
|
13,167
|
|
|
$
|
12,224
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Real estate
|
|
17
|
|
|
79
|
|
|
19
|
|
|
204
|
|
||||
Commercial and industrial
|
|
168
|
|
|
90
|
|
|
168
|
|
|
90
|
|
||||
Other consumer
|
|
67
|
|
|
127
|
|
|
111
|
|
|
141
|
|
||||
Total charge-offs
|
|
252
|
|
|
296
|
|
|
298
|
|
|
435
|
|
||||
Recoveries on loans previously charged off
|
|
|
|
|
|
|
|
|
||||||||
Real estate
|
|
—
|
|
|
50
|
|
|
4
|
|
|
52
|
|
||||
Commercial and industrial
|
|
33
|
|
|
54
|
|
|
74
|
|
|
234
|
|
||||
Other consumer
|
|
16
|
|
|
17
|
|
|
72
|
|
|
26
|
|
||||
Total recoveries
|
|
49
|
|
|
121
|
|
|
150
|
|
|
312
|
|
||||
Net charge-offs
|
|
203
|
|
|
175
|
|
|
148
|
|
|
123
|
|
||||
Provision for loan losses
|
|
394
|
|
|
425
|
|
|
309
|
|
|
520
|
|
||||
Balance at end of period
|
|
13,328
|
|
|
12,621
|
|
|
13,328
|
|
|
12,621
|
|
||||
Loans held-for-investment:
|
|
|
|
|
|
|
|
|
||||||||
Balance at end of period
|
|
$
|
1,395,557
|
|
|
$
|
1,254,312
|
|
|
$
|
1,395,557
|
|
|
$
|
1,254,312
|
|
Average balance
|
|
1,375,537
|
|
|
1,222,532
|
|
|
1,354,946
|
|
|
1,218,362
|
|
||||
Ratios:
|
|
|
|
|
|
|
|
|
||||||||
Annualized net charge-offs to average loans held-for-investment
|
|
0.06
|
%
|
|
0.06
|
%
|
|
0.02
|
%
|
|
0.02
|
%
|
||||
Allowance for loan losses to loans held-for-investment
|
|
0.96
|
%
|
|
1.01
|
%
|
|
0.96
|
%
|
|
1.01
|
%
|
||||
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Amount Change
|
|
Percentage Change
|
|||||||
Nonaccrual loans
|
|
|
|
|
|
|
|
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|||||||
Residential property
|
|
$
|
—
|
|
|
$
|
302
|
|
|
$
|
(302
|
)
|
|
(100.0
|
)%
|
SBA property
|
|
1,372
|
|
|
540
|
|
|
832
|
|
|
154.1
|
%
|
|||
Total real estate loans
|
|
1,372
|
|
|
842
|
|
|
530
|
|
|
62.9
|
%
|
|||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|||||||
SBA commercial term
|
|
16
|
|
|
203
|
|
|
(187
|
)
|
|
(92.1
|
)%
|
|||
Total commercial and industrial loans
|
|
16
|
|
|
203
|
|
|
(187
|
)
|
|
(92.1
|
)%
|
|||
Consumer loans
|
|
41
|
|
|
16
|
|
|
25
|
|
|
156.3
|
%
|
|||
Total nonaccrual loans
|
|
1,429
|
|
|
1,061
|
|
|
368
|
|
|
34.7
|
%
|
|||
Loans past due 90 days or more still on accrual
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Total nonperforming loans
|
|
1,429
|
|
|
1,061
|
|
|
368
|
|
|
34.7
|
%
|
|||
Other real estate owned
|
|
395
|
|
|
—
|
|
|
395
|
|
|
NM
|
|
|||
Total nonperforming assets
|
|
$
|
1,824
|
|
|
$
|
1,061
|
|
|
$
|
763
|
|
|
71.9
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||
Nonperforming loans to loans held-for-investment
|
|
0.10
|
%
|
|
0.08
|
%
|
|
|
|
|
|||||
Nonperforming assets to total assets
|
|
0.11
|
%
|
|
0.06
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Accruing
|
|
Nonaccrual
|
|
Total
|
|
Accruing
|
|
Nonaccrual
|
|
Total
|
||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SBA property
|
|
$
|
304
|
|
|
$
|
131
|
|
|
$
|
435
|
|
|
$
|
315
|
|
|
$
|
—
|
|
|
$
|
315
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial term
|
|
47
|
|
|
—
|
|
|
47
|
|
|
68
|
|
|
—
|
|
|
68
|
|
||||||
SBA commercial term
|
|
40
|
|
|
—
|
|
|
40
|
|
|
49
|
|
|
131
|
|
|
180
|
|
||||||
Total
|
|
$
|
391
|
|
|
$
|
131
|
|
|
$
|
522
|
|
|
$
|
432
|
|
|
$
|
131
|
|
|
$
|
563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Three Months or Less
|
|
Three to Six Months
|
|
Six Months to One Year
|
|
One to Three Years
|
|
Over Three Years
|
|
Total
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Time deposits less than $100,000
|
|
$
|
38,742
|
|
|
$
|
35,933
|
|
|
$
|
63,637
|
|
|
$
|
10,738
|
|
|
$
|
1,950
|
|
|
$
|
151,000
|
|
Time deposits of $100,000 through $250,000
|
|
98,291
|
|
|
56,810
|
|
|
168,314
|
|
|
6,371
|
|
|
—
|
|
|
329,786
|
|
||||||
Time deposits of more than $250,000
|
|
132,002
|
|
|
45,563
|
|
|
114,350
|
|
|
2,865
|
|
|
—
|
|
|
294,780
|
|
||||||
Total
|
|
$
|
269,035
|
|
|
$
|
138,306
|
|
|
$
|
346,301
|
|
|
$
|
19,974
|
|
|
$
|
1,950
|
|
|
$
|
775,566
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Time deposits less than $100,000
|
|
$
|
38,772
|
|
|
$
|
28,829
|
|
|
$
|
74,628
|
|
|
$
|
19,771
|
|
|
$
|
2,289
|
|
|
$
|
164,289
|
|
Time deposits of $100,000 through $250,000
|
|
131,190
|
|
|
45,398
|
|
|
157,047
|
|
|
21,710
|
|
|
—
|
|
|
355,345
|
|
||||||
Time deposits of more than $250,000
|
|
144,225
|
|
|
40,224
|
|
|
84,502
|
|
|
12,288
|
|
|
—
|
|
|
281,239
|
|
||||||
Total
|
|
$
|
314,187
|
|
|
$
|
114,451
|
|
|
$
|
316,177
|
|
|
$
|
53,769
|
|
|
$
|
2,289
|
|
|
$
|
800,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCB Bancorp
|
|
Pacific City Bank
|
|
Minimum Regulatory Requirements
|
|
Well Capitalized Requirements (Bank)
|
||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||
Common tier 1 capital (to risk-weighted assets)
|
|
16.20
|
%
|
|
16.07
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
Total capital (to risk-weighted assets)
|
|
17.18
|
%
|
|
17.05
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
Tier 1 capital (to risk-weighted assets)
|
|
16.20
|
%
|
|
16.07
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
Tier 1 capital (to average assets)
|
|
12.74
|
%
|
|
12.64
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||
Common tier 1 capital (to risk-weighted assets)
|
|
16.28
|
%
|
|
16.19
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
Total capital (to risk-weighted assets)
|
|
17.31
|
%
|
|
17.21
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
Tier 1 capital (to risk-weighted assets)
|
|
16.28
|
%
|
|
16.19
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
Tier 1 capital (to average assets)
|
|
12.60
|
%
|
|
12.53
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Commitments to extend credit
|
|
$
|
154,453
|
|
|
$
|
127,443
|
|
Standby letters of credit
|
|
2,363
|
|
|
2,998
|
|
||
Commercial letters of credit
|
|
532
|
|
|
477
|
|
||
Total
|
|
$
|
157,348
|
|
|
$
|
130,918
|
|
|
|
|
|
|
($ in thousands)
|
|
Within One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
Over Five Years
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
|
$
|
753,642
|
|
|
$
|
19,974
|
|
|
$
|
1,950
|
|
|
$
|
—
|
|
|
$
|
775,566
|
|
FHLB advances
|
|
25,000
|
|
|
10,000
|
|
|
—
|
|
|
—
|
|
|
35,000
|
|
|||||
Operating leases
|
|
2,685
|
|
|
4,706
|
|
|
3,187
|
|
|
1,625
|
|
|
12,203
|
|
|||||
Total
|
|
$
|
781,327
|
|
|
$
|
34,680
|
|
|
$
|
5,137
|
|
|
$
|
1,625
|
|
|
$
|
822,769
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
|
$
|
744,815
|
|
|
$
|
53,769
|
|
|
$
|
2,289
|
|
|
$
|
—
|
|
|
$
|
800,873
|
|
FHLB advances
|
|
10,000
|
|
|
10,000
|
|
|
10,000
|
|
|
—
|
|
|
30,000
|
|
|||||
Operating leases
|
|
2,446
|
|
|
4,335
|
|
|
3,413
|
|
|
1,104
|
|
|
11,298
|
|
|||||
Total
|
|
$
|
757,261
|
|
|
$
|
68,104
|
|
|
$
|
15,702
|
|
|
$
|
1,104
|
|
|
$
|
842,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||
Simulated Rate Changes
|
|
Net Interest Income Sensitivity
|
|
Economic Value of Equity Sensitivity
|
|
Net Interest Income Sensitivity
|
|
Economic Value of Equity Sensitivity
|
||||
+200
|
|
21.8
|
%
|
|
7.8
|
%
|
|
21.4
|
%
|
|
6.0
|
%
|
+100
|
|
11.3
|
%
|
|
4.9
|
%
|
|
11.0
|
%
|
|
3.7
|
%
|
-100
|
|
(14.0
|
)%
|
|
(7.3
|
)%
|
|
(13.7
|
)%
|
|
(5.9
|
)%
|
-200
|
|
(28.0
|
)%
|
|
(15.2
|
)%
|
|
(27.7
|
)%
|
|
(13.8
|
)%
|
|
|
|
|
|
|
|
|
|
($ in thousands, except per share data)
|
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program
|
||||||
From April 1, 2019 to April 30, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
6,500
|
|
From May 1, 2019 to May 31, 2019
|
|
12,050
|
|
|
16.91
|
|
|
12,050
|
|
|
6,296
|
|
||
From June 1, 2019 to June 30, 2019
|
|
45,501
|
|
|
16.93
|
|
|
45,501
|
|
|
5,526
|
|
||
Total
|
|
57,551
|
|
|
$
|
16.93
|
|
|
57,551
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Exhibit Number
|
|
Description
|
|
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
3.1
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
|
8-K
|
|
001-38621
|
|
3.2
|
|
July 2, 2019
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
|
S-1
|
|
333-226208
|
|
10.1
|
|
July 17, 2018
|
|
10.2
|
|
|
S-1
|
|
333-226208
|
|
10.2
|
|
July 17, 2018
|
|
10.3
|
|
|
S-1
|
|
333-226208
|
|
10.3
|
|
July 17, 2018
|
|
10.4
|
|
|
S-1
|
|
333-226208
|
|
10.4
|
|
July 17, 2018
|
|
10.5
|
|
|
S-1
|
|
333-226208
|
|
10.5
|
|
July 17, 2018
|
|
10.6
|
|
|
S-1
|
|
333-226208
|
|
10.6
|
|
July 17, 2018
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document*
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document*
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document*
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document*
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document*
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCB Bancorp
|
|
|
|
|
Date:
|
August 8, 2019
|
|
/s/ Henry Kim
|
|
|
|
Henry Kim
|
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
Date:
|
August 8, 2019
|
|
/s/ Timothy Chang
|
|
|
|
Timothy Chang
|
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
Dated:
|
May 23, 2019
|
|
|
|
/s/ Henry Kim
|
|
|
|
Henry Kim
|
|
|
|
President and CEO
|
|
|
|
|
|
|
|
/s/ Timothy Chang
|
|
|
|
Timothy Chang
|
|
|
|
Corporate Secretary
|
1.
|
I have reviewed this periodic report on Form 10-Q of PCB Bancorp;
|
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 statement 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 reports;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(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 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 the 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.
|
Date:
|
August 8, 2019
|
|
/s/ Henry Kim
|
|
|
|
Henry Kim
|
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
1.
|
I have reviewed this periodic report on Form 10-Q of PCB Bancorp;
|
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 statement 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 reports;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(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 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 the 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.
|
Date:
|
August 8, 2019
|
|
/s/ Timothy Chang
|
|
|
|
Timothy Chang
|
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
(1)
|
the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, 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 Company.
|
Date:
|
August 8, 2019
|
|
/s/ Henry Kim
|
|
|
|
Henry Kim
|
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
(1)
|
the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, 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 Company.
|
Date:
|
August 8, 2019
|
|
/s/ Timothy Chang
|
|
|
|
Timothy Chang
|
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|