FORM 10-K
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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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Smaller reporting company
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x
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Emerging growth company
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x
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Page
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Part I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Part II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Part III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Part IV
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Item 15.
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Item 16.
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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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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 (the “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, 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 effects of severe weather, natural disasters, acts of war or terrorism, health epidemics or pandemics (or expectations about them) and other external events on our business;
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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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•
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maintaining close relationships among the Company’s customers and their designated banker to ensure ongoing credit monitoring and loan servicing;
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•
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granting credit on a sound basis with full knowledge of the purpose and source of repayment for such credit ensuring that primary and secondary sources of repayment are adequate in relation to the amount of the loan;
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•
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developing and maintaining targeted levels of diversification for the loan portfolio as a whole and for loans within each category; and
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•
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ensuring that each loan is properly documented and that any insurance coverage requirements are satisfied.
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•
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Real estate loans consist of:
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◦
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Commercial property - loans secured by commercial real estate (“CRE”) other than loans guaranteed by the U.S. Small Business Administration (“SBA”);
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◦
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Residential property - loans secured by single family residential (“SFR”) real estate;
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◦
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SBA property - SBA guaranteed loans secured by CRE; and
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◦
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Construction.
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•
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Commercial and industrial (“C&I”) loans consist of:
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◦
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Commercial term;
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◦
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Commercial lines of credit; and
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◦
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SBA commercial term.
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•
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Other consumer loans consist of automobile secured loans and personal loans.
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December 31,
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||||||||||||
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2019
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2018
|
||||||||||
($ in thousands)
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Amount
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Percentage to Total
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Amount
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Percentage to Total
|
||||||
Real estate loans:
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|
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||||||
Commercial property
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$
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803,014
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55.4
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%
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$
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709,409
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53.1
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%
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Residential property
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235,046
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16.3
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%
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233,816
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17.5
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%
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SBA property
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129,837
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8.9
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%
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120,939
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9.0
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%
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Construction
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19,164
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1.3
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%
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27,323
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2.0
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%
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Commercial and industrial loans:
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Commercial term
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103,380
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7.1
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%
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102,133
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7.6
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%
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Commercial lines of credit
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111,768
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7.7
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%
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91,994
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6.9
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%
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SBA commercial term
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25,332
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1.7
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%
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27,147
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2.0
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%
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Other consumer loans
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23,290
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1.6
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%
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25,921
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1.9
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%
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Loans held-for-investment
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$
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1,450,831
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100.0
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%
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$
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1,338,682
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100.0
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%
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December 31,
|
||||||||||||
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2019
|
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2018
|
||||||||||
($ in thousands)
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Amount
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Percentage to Total
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Amount
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Percentage to Total
|
||||||
Real estate loans:
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||||||
Residential property
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$
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760
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38.5
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%
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$
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—
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—
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%
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SBA property
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150
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7.6
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%
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5,481
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94.8
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%
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Commercial and industrial loans:
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||||||
SBA commercial term
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1,065
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53.9
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%
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300
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5.2
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%
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Loans held-for-sale
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$
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1,975
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100.0
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%
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$
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5,781
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100.0
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%
|
|
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•
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provide a ready source of balance sheet liquidity, ensuring adequate availability of funds to meet fluctuations in loan demand, deposit balances and other changes in balance sheet volumes and composition;
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•
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serve as a tool to manage asset-quality diversification of assets; and
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•
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provide a vehicle to help manage interest rate risk profile pursuant to established policies and maximize overall return.
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•
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creating a Financial Stability Oversight Council tasked with identifying and monitoring systemic risks in the financial system;
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•
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creating the CFPB, which is responsible for implementing, examining and enforcing compliance with federal consumer financial protection laws;
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•
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requiring the FDIC to make its capital requirements for insured depository institutions countercyclical, so that capital requirements increase in times of economic expansion and decrease in times of economic contraction;
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•
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imposing more stringent capital requirements on bank holding companies and subjecting certain activities, including inter-state mergers and acquisitions, to heightened capital conditions;
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•
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with respect to mortgage lending:
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◦
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significantly expanding requirements applicable to loans secured by SFR real property;
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◦
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imposing strict rules on mortgage servicing, and
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◦
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requiring the originator of a securitized loan, or the sponsor of a securitization, to retain at least 5% of the credit risk of securitized exposures unless the underlying exposures are qualified residential mortgages or meet certain underwriting standards;
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•
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changing the assessment base for federal deposit insurance from the amount of the insured deposits held by the depository institution to the depository institution’s average total consolidated assets less tangible equity, eliminating the ceiling on the size of the FDIC’s Deposit Insurance Fund (“DIF”) and increasing the floor of the size of the FDIC’s DIF;
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•
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eliminating all remaining restrictions on interstate banking by authorizing state banks to establish de novo banking offices in any state that would permit a bank chartered in that state to open a banking office at that location;
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•
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repealing the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts; and
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•
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in the so-called “Volcker Rule,” subject to numerous exceptions, prohibiting depository institutions and affiliates from certain investments in, and sponsorship of, hedge funds and private equity funds and from engaging in proprietary trading.
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•
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4.0% Tier 1 leverage ratio;
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•
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4.5% CET1 to risk-weighted assets;
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•
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6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets; and
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•
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8.0% total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets.
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•
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4.0% Tier 1 leverage ratio;
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•
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4.5% CET1 to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7%;
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•
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6.0% Tier 1 capital to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum Tier 1 capital ratio of at least 8.5%; and
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•
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8.0% total capital to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum total capital ratio of at least 10.5%.
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•
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consistent with the Basel I risk-based capital rules, assigning exposures secured by single-family residential properties to either a 50% risk weight for first-lien mortgages that meet prudent underwriting standards or a 100% risk weight category for all other mortgages;
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•
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providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (set at 0% under the Basel I risk-based capital rules);
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•
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assigning a 150% risk weight to all exposures that are nonaccrual or 90 days or more past due (set at 100% under the Basel I risk-based capital rules), except for those secured by single-family residential properties, which will be assigned a 100% risk weight, consistent with the Basel I risk-based capital rules;
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•
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applying a 150% risk weight instead of a 100% risk weight for certain high volatility CRE acquisition, development and construction loans; and
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•
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applying a 250% risk weight to the portion of mortgage servicing rights and deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks that are not deducted from CET1 capital (set at 100% under the Basel I risk-based capital rules).
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•
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a decrease in the demand for our loans and other products and services offered by us;
|
•
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a decrease in our deposit balances due to overall reductions in the accounts of customers;
|
•
|
a decrease in the value of our investment securities and loans;
|
•
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an increase in the level of nonperforming and classified loans:
|
•
|
an increase in provisions for loan losses and loan charge-offs;
|
•
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a decrease in net interest income derived from our lending and deposit gathering activities;
|
•
|
a decrease in the Company’s stock price;
|
•
|
an increase in our operating expenses associated with attending to the effects of the above-listed circumstances; and/or
|
•
|
a decrease in real estate values or a general decrease in capital available to finance real estate transactions, which could have a negative impact on borrowers’ ability to pay off their loans at maturity.
|
•
|
the proliferation of new technologies, and the use of the Internet and telecommunications technologies to conduct financial transactions;
|
•
|
these threats arise from numerous sources, not all of which are in our control, including among others human error, fraud or malice on the part of employees or third-parties, accidental technological failure, electrical or telecommunication outages, failures of computer servers or other damage to our property or assets, natural disasters or severe weather conditions, health emergencies or pandemics, or outbreaks of hostilities or terrorist acts;
|
•
|
the techniques used in cyber-attacks change frequently and may not be recognized until launched or until well after the breach has occurred;
|
•
|
the increased sophistication and activities of organized crime groups, hackers, terrorist organizations, hostile foreign governments, disgruntled employees or vendors, activists and other external parties, including those involved in corporate espionage;
|
•
|
the vulnerability of systems to third-parties seeking to gain access to such systems either directly or using equipment or security passwords belonging to employees, customers, third-party service providers or other users of our systems; and
|
•
|
our frequent transmission of sensitive information to, and storage of such information by, third-parties, including our vendors and regulators, and possible weaknesses that go undetected in our data systems notwithstanding the testing we conduct of those systems.
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($ 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 October 1, 2019 to October 31, 2019
|
|
22,646
|
|
|
$
|
16.59
|
|
|
22,646
|
|
|
$
|
—
|
|
From November 1, 2019 to November 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
From December 1, 2019 to December 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
22,646
|
|
|
$
|
16.59
|
|
|
22,646
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
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As of or For the Year Ended December 31,
|
||||||||||||||||||
($ in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Selected balance sheet data:
|
|
|
|
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|
||||||||||
Cash and cash equivalents
|
|
$
|
146,228
|
|
|
$
|
162,273
|
|
|
$
|
73,658
|
|
|
$
|
69,951
|
|
|
$
|
76,950
|
|
Securities available-for-sale
|
|
97,566
|
|
|
146,991
|
|
|
129,689
|
|
|
82,838
|
|
|
84,847
|
|
|||||
Securities held-to-maturity
|
|
20,154
|
|
|
21,760
|
|
|
21,070
|
|
|
17,584
|
|
|
17,338
|
|
|||||
Loans held-for-sale
|
|
1,975
|
|
|
5,781
|
|
|
5,297
|
|
|
2,150
|
|
|
1,941
|
|
|||||
Loans held-for-investment
|
|
1,450,831
|
|
|
1,338,682
|
|
|
1,189,999
|
|
|
1,031,112
|
|
|
844,369
|
|
|||||
Allowance for loan losses
|
|
(14,380
|
)
|
|
(13,167
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)
|
|
(12,224
|
)
|
|
(11,320
|
)
|
|
(9,345
|
)
|
|||||
Total assets
|
|
1,746,328
|
|
|
1,697,028
|
|
|
1,441,999
|
|
|
1,226,642
|
|
|
1,042,517
|
|
|||||
Total deposits
|
|
1,479,307
|
|
|
1,443,753
|
|
|
1,251,290
|
|
|
1,091,812
|
|
|
939,439
|
|
|||||
Shareholders’ equity
|
|
226,834
|
|
|
210,296
|
|
|
142,184
|
|
|
127,007
|
|
|
98,040
|
|
|||||
Selected income statement data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
|
$
|
92,945
|
|
|
$
|
83,699
|
|
|
$
|
65,267
|
|
|
$
|
52,595
|
|
|
$
|
43,271
|
|
Interest expense
|
|
23,911
|
|
|
17,951
|
|
|
10,097
|
|
|
7,014
|
|
|
6,231
|
|
|||||
Net interest income
|
|
69,034
|
|
|
65,748
|
|
|
55,170
|
|
|
45,581
|
|
|
37,040
|
|
|||||
Provision for loan losses
|
|
4,237
|
|
|
1,231
|
|
|
1,827
|
|
|
2,283
|
|
|
412
|
|
|||||
Noninterest income
|
|
11,869
|
|
|
10,454
|
|
|
13,894
|
|
|
13,619
|
|
|
12,779
|
|
|||||
Noninterest expense
|
|
42,315
|
|
|
40,226
|
|
|
35,895
|
|
|
32,514
|
|
|
28,320
|
|
|||||
Income before income taxes
|
|
34,351
|
|
|
34,745
|
|
|
31,342
|
|
|
24,403
|
|
|
21,087
|
|
|||||
Income tax expense
|
|
10,243
|
|
|
10,444
|
|
|
14,939
|
|
|
10,401
|
|
|
8,901
|
|
|||||
Net income
|
|
24,108
|
|
|
24,301
|
|
|
16,403
|
|
|
14,002
|
|
|
12,186
|
|
|||||
Per share data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per common share, basic
|
|
$
|
1.52
|
|
|
$
|
1.69
|
|
|
$
|
1.22
|
|
|
$
|
1.12
|
|
|
$
|
1.03
|
|
Earnings per common share, diluted
|
|
1.49
|
|
|
1.65
|
|
|
1.21
|
|
|
1.11
|
|
|
1.02
|
|
|||||
Book value per common share (1)
|
|
14.44
|
|
|
13.16
|
|
|
10.60
|
|
|
9.48
|
|
|
8.26
|
|
|||||
Cash dividends declared per common share
|
|
0.25
|
|
|
0.12
|
|
|
0.12
|
|
|
0.11
|
|
|
0.08
|
|
|||||
Outstanding share data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of common shares outstanding
|
|
15,707,016
|
|
|
15,977,754
|
|
|
13,417,899
|
|
|
13,391,222
|
|
|
11,865,145
|
|
|||||
Weighted-average common shares outstanding, basic
|
|
15,873,383
|
|
|
14,397,075
|
|
|
13,408,030
|
|
|
12,532,807
|
|
|
11,840,528
|
|
|||||
Weighted-average common shares outstanding, diluted
|
|
16,172,282
|
|
|
14,691,370
|
|
|
13,540,293
|
|
|
12,607,990
|
|
|
11,929,503
|
|
|||||
Selected performance ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
1.40
|
%
|
|
1.53
|
%
|
|
1.22
|
%
|
|
1.25
|
%
|
|
1.25
|
%
|
|||||
Return on average shareholders’ equity
|
|
10.88
|
%
|
|
14.26
|
%
|
|
12.00
|
%
|
|
12.47
|
%
|
|
13.10
|
%
|
|||||
Dividend payout ratio (2)
|
|
16.45
|
%
|
|
7.10
|
%
|
|
9.84
|
%
|
|
9.82
|
%
|
|
7.77
|
%
|
|||||
Efficiency ratio (3)
|
|
52.30
|
%
|
|
52.79
|
%
|
|
51.97
|
%
|
|
54.92
|
%
|
|
56.85
|
%
|
|||||
Yield on average interest-earning assets
|
|
5.53
|
%
|
|
5.38
|
%
|
|
4.99
|
%
|
|
4.82
|
%
|
|
4.54
|
%
|
|||||
Cost of average interest-bearing liabilities
|
|
2.09
|
%
|
|
1.65
|
%
|
|
1.14
|
%
|
|
0.96
|
%
|
|
0.95
|
%
|
|||||
Net interest spread
|
|
3.44
|
%
|
|
3.73
|
%
|
|
3.85
|
%
|
|
3.86
|
%
|
|
3.59
|
%
|
|||||
Net interest margin (4)
|
|
4.11
|
%
|
|
4.23
|
%
|
|
4.22
|
%
|
|
4.18
|
%
|
|
3.89
|
%
|
|||||
Total loans to total deposits ratio (5)
|
|
98.21
|
%
|
|
93.12
|
%
|
|
95.53
|
%
|
|
94.64
|
%
|
|
90.09
|
%
|
|
|
As of or For the Year Ended December 31,
|
||||||||||||||||||
($ in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Asset quality:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans 30 to 89 days past due and still accruing
|
|
$
|
1,818
|
|
|
$
|
377
|
|
|
$
|
1,341
|
|
|
$
|
2,094
|
|
|
$
|
456
|
|
Loans past due 90 days or more and still accruing
|
|
287
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Nonaccrual loans
|
|
2,537
|
|
|
1,061
|
|
|
3,234
|
|
|
1,848
|
|
|
2,372
|
|
|||||
Nonperforming loans
|
|
2,824
|
|
|
1,061
|
|
|
3,234
|
|
|
1,848
|
|
|
2,372
|
|
|||||
Nonperforming assets (6)
|
|
2,824
|
|
|
1,061
|
|
|
3,333
|
|
|
2,354
|
|
|
2,372
|
|
|||||
Net charge-offs
|
|
3,024
|
|
|
288
|
|
|
923
|
|
|
308
|
|
|
500
|
|
|||||
Loans 30 to 89 days past due and still accruing to loans held-for-investment
|
|
0.13
|
%
|
|
0.03
|
%
|
|
0.11
|
%
|
|
0.20
|
%
|
|
0.05
|
%
|
|||||
Nonaccrual loans to loans held-for-investment
|
|
0.17
|
%
|
|
0.08
|
%
|
|
0.27
|
%
|
|
0.18
|
%
|
|
0.28
|
%
|
|||||
Nonaccrual loans to allowance for loan losses
|
|
17.64
|
%
|
|
8.06
|
%
|
|
26.46
|
%
|
|
16.33
|
%
|
|
25.38
|
%
|
|||||
Nonperforming loans to loans held-for-investment
|
|
0.19
|
%
|
|
0.08
|
%
|
|
0.27
|
%
|
|
0.18
|
%
|
|
0.28
|
%
|
|||||
Nonperforming loans to allowance for loan losses
|
|
19.64
|
%
|
|
8.06
|
%
|
|
26.46
|
%
|
|
16.33
|
%
|
|
25.38
|
%
|
|||||
Nonperforming assets to total assets
|
|
0.16
|
%
|
|
0.06
|
%
|
|
0.23
|
%
|
|
0.19
|
%
|
|
0.23
|
%
|
|||||
Allowance for loan losses to loans held-for-investment
|
|
0.99
|
%
|
|
0.98
|
%
|
|
1.03
|
%
|
|
1.10
|
%
|
|
1.11
|
%
|
|||||
Allowance for loan losses to nonaccrual loans
|
|
566.81
|
%
|
|
1,241.00
|
%
|
|
377.98
|
%
|
|
612.55
|
%
|
|
393.97
|
%
|
|||||
Allowance for loan losses to nonperforming loans
|
|
509.21
|
%
|
|
1,241.00
|
%
|
|
377.98
|
%
|
|
612.55
|
%
|
|
393.97
|
%
|
|||||
Net charge-offs to average loans held-for-investment
|
|
0.22
|
%
|
|
0.02
|
%
|
|
0.08
|
%
|
|
0.03
|
%
|
|
0.06
|
%
|
|||||
Capital ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity to total assets
|
|
12.99
|
%
|
|
12.39
|
%
|
|
9.86
|
%
|
|
10.35
|
%
|
|
9.40
|
%
|
|||||
Average equity to average assets
|
|
12.88
|
%
|
|
10.72
|
%
|
|
10.20
|
%
|
|
10.01
|
%
|
|
9.52
|
%
|
|||||
PCB Bancorp
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
15.87
|
%
|
|
16.28
|
%
|
|
12.15
|
%
|
|
12.47
|
%
|
|
12.26
|
%
|
|||||
Total capital (to risk-weighted assets)
|
|
16.90
|
%
|
|
17.31
|
%
|
|
13.20
|
%
|
|
13.59
|
%
|
|
13.44
|
%
|
|||||
Tier 1 capital (to risk-weighted assets)
|
|
15.87
|
%
|
|
16.28
|
%
|
|
12.15
|
%
|
|
12.47
|
%
|
|
12.26
|
%
|
|||||
Tier 1 capital (to average assets)
|
|
13.23
|
%
|
|
12.60
|
%
|
|
10.01
|
%
|
|
10.48
|
%
|
|
9.40
|
%
|
|||||
Pacific City Bank
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
15.68
|
%
|
|
16.19
|
%
|
|
12.06
|
%
|
|
12.35
|
%
|
|
12.07
|
%
|
|||||
Total capital (to risk-weighted assets)
|
|
16.71
|
%
|
|
17.21
|
%
|
|
13.12
|
%
|
|
13.48
|
%
|
|
13.25
|
%
|
|||||
Tier 1 capital (to risk-weighted assets)
|
|
15.68
|
%
|
|
16.19
|
%
|
|
12.06
|
%
|
|
12.35
|
%
|
|
12.07
|
%
|
|||||
Tier 1 capital (to average assets)
|
|
13.06
|
%
|
|
12.53
|
%
|
|
9.94
|
%
|
|
10.38
|
%
|
|
9.25
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Shareholders’ equity divided by common shares outstanding.
|
(2)
|
Dividends declared per common share divided by basic earnings per common share.
|
(3)
|
Noninterest expenses divided by the sum of net interest income and noninterest income.
|
(4)
|
Net interest income divided by average total interest-earning assets.
|
(5)
|
Total loans include both loans held-for-sale and loans held-for-investment, net of unearned loan costs (fees).
|
(6)
|
Nonperforming assets include nonperforming loans (nonaccrual loans plus loans past due 90 days or more and still accruing) and other real estate owned.
|
•
|
Total assets were $1.75 billion at December 31, 2019, an increase of $49.3 million, or 2.9%, from $1.70 billion at December 31, 2018;
|
•
|
Loans held-for-investment, net of deferred costs (fees), were $1.45 billion at December 31, 2019, an increase of $112.1 million, or 8.4%, from $1.34 billion at December 31, 2018; and
|
•
|
Total deposits were $1.48 billion at December 31, 2019, an increase of $35.6 million, or 2.5%, from $1.44 billion at December 31, 2018.
|
•
|
Net income was $24.1 million for the year ended December 31, 2019, a decrease of $193 thousand, or 0.8%, from $24.3 million for the year ended December 31, 2018;
|
•
|
Diluted earnings per common share was $1.49, $1.65 and $1.21, respectively, for the years ended December 31, 2019, 2018 and 2017.
|
•
|
Net interest margin was 4.11%, 4.23% and 4.22%, respectively, for the years ended December 31, 2019, 2018 and 2017.
|
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
($ in thousands)
|
|
Average Balance
|
|
Interest
|
|
Yield/Cost
|
|
Average Balance
|
|
Interest
|
|
Yield/Cost
|
|
Average Balance
|
|
Interest
|
|
Yield/Cost
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total loans (1)
|
|
$
|
1,383,562
|
|
|
$
|
85,667
|
|
|
6.19
|
%
|
|
$
|
1,264,166
|
|
|
$
|
76,837
|
|
|
6.08
|
%
|
|
$
|
1,111,248
|
|
|
$
|
61,516
|
|
|
5.54
|
%
|
Mortgage backed securities
|
|
82,848
|
|
|
2,081
|
|
|
2.51
|
%
|
|
70,971
|
|
|
1,717
|
|
|
2.42
|
%
|
|
57,171
|
|
|
1,110
|
|
|
1.94
|
%
|
||||||
Collateralized mortgage obligation
|
|
51,441
|
|
|
1,185
|
|
|
2.30
|
%
|
|
53,312
|
|
|
1,272
|
|
|
2.39
|
%
|
|
36,660
|
|
|
746
|
|
|
2.03
|
%
|
||||||
SBA loan pool securities
|
|
20,681
|
|
|
536
|
|
|
2.59
|
%
|
|
23,671
|
|
|
576
|
|
|
2.43
|
%
|
|
24,762
|
|
|
571
|
|
|
2.31
|
%
|
||||||
Municipal securities - tax exempt (2)
|
|
5,833
|
|
|
154
|
|
|
2.64
|
%
|
|
6,312
|
|
|
159
|
|
|
2.52
|
%
|
|
8,319
|
|
|
187
|
|
|
2.25
|
%
|
||||||
Interest-bearing deposits in other financial institutions
|
|
126,803
|
|
|
2,781
|
|
|
2.19
|
%
|
|
130,453
|
|
|
2,539
|
|
|
1.95
|
%
|
|
62,327
|
|
|
690
|
|
|
1.11
|
%
|
||||||
FHLB and other bank stock
|
|
8,067
|
|
|
541
|
|
|
6.71
|
%
|
|
7,174
|
|
|
599
|
|
|
8.35
|
%
|
|
6,310
|
|
|
447
|
|
|
7.08
|
%
|
||||||
Total interest-earning assets
|
|
1,679,235
|
|
|
92,945
|
|
|
5.53
|
%
|
|
1,556,059
|
|
|
83,699
|
|
|
5.38
|
%
|
|
1,306,797
|
|
|
65,267
|
|
|
4.99
|
%
|
||||||
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents
|
|
18,614
|
|
|
|
|
|
|
19,079
|
|
|
|
|
|
|
16,973
|
|
|
|
|
|
||||||||||||
Allowances for loan losses
|
|
(13,197
|
)
|
|
|
|
|
|
(12,632
|
)
|
|
|
|
|
|
(11,435
|
)
|
|
|
|
|
||||||||||||
Other assets
|
|
35,010
|
|
|
|
|
|
|
26,827
|
|
|
|
|
|
|
27,793
|
|
|
|
|
|
||||||||||||
Total noninterest earning assets
|
|
40,427
|
|
|
|
|
|
|
33,274
|
|
|
|
|
|
|
33,331
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
1,719,662
|
|
|
|
|
|
|
$
|
1,589,333
|
|
|
|
|
|
|
$
|
1,340,128
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW and money market accounts
|
|
$
|
329,562
|
|
|
5,162
|
|
|
1.57
|
%
|
|
$
|
287,131
|
|
|
3,477
|
|
|
1.21
|
%
|
|
$
|
320,701
|
|
|
3,244
|
|
|
1.01
|
%
|
|||
Savings
|
|
7,965
|
|
|
32
|
|
|
0.40
|
%
|
|
8,613
|
|
|
26
|
|
|
0.30
|
%
|
|
8,873
|
|
|
25
|
|
|
0.28
|
%
|
||||||
Time deposits
|
|
783,353
|
|
|
18,245
|
|
|
2.33
|
%
|
|
758,029
|
|
|
13,837
|
|
|
1.83
|
%
|
|
539,068
|
|
|
6,480
|
|
|
1.20
|
%
|
||||||
Borrowings
|
|
25,388
|
|
|
472
|
|
|
1.86
|
%
|
|
34,904
|
|
|
611
|
|
|
1.75
|
%
|
|
20,384
|
|
|
348
|
|
|
1.71
|
%
|
||||||
Total interest-bearing liabilities
|
|
1,146,268
|
|
|
23,911
|
|
|
2.09
|
%
|
|
1,088,677
|
|
|
17,951
|
|
|
1.65
|
%
|
|
889,026
|
|
|
10,097
|
|
|
1.14
|
%
|
||||||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
|
329,731
|
|
|
|
|
|
|
319,832
|
|
|
|
|
|
|
305,354
|
|
|
|
|
|
||||||||||||
Other liabilities
|
|
22,087
|
|
|
|
|
|
|
10,395
|
|
|
|
|
|
|
9,026
|
|
|
|
|
|
||||||||||||
Total noninterest-bearing liabilities
|
|
351,818
|
|
|
|
|
|
|
330,227
|
|
|
|
|
|
|
314,380
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
1,498,086
|
|
|
|
|
|
|
1,418,904
|
|
|
|
|
|
|
1,203,406
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
|
221,576
|
|
|
|
|
|
|
170,429
|
|
|
|
|
|
|
136,722
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
|
$
|
1,719,662
|
|
|
|
|
|
|
$
|
1,589,333
|
|
|
|
|
|
|
$
|
1,340,128
|
|
|
|
|
|
|||||||||
Net interest income
|
|
|
|
$
|
69,034
|
|
|
|
|
|
|
$
|
65,748
|
|
|
|
|
|
|
$
|
55,170
|
|
|
|
|||||||||
Net interest spread (3)
|
|
|
|
|
|
3.44
|
%
|
|
|
|
|
|
3.73
|
%
|
|
|
|
|
|
3.85
|
%
|
||||||||||||
Net interest margin (4)
|
|
|
|
|
|
4.11
|
%
|
|
|
|
|
|
4.23
|
%
|
|
|
|
|
|
4.22
|
%
|
||||||||||||
Cost of funds (5)
|
|
|
|
|
|
1.62
|
%
|
|
|
|
|
|
1.27
|
%
|
|
|
|
|
|
0.85
|
%
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $452 thousand, $515 thousand and $559 thousand, respectively, and net accretion of discount on loans of $4.0 million, $4.4 million and $3.5 million, respectively, are included in the interest income for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(2)
|
The yield on municipal bonds has not been computed on a tax-equivalent basis.
|
(3)
|
Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
|
(4)
|
Net interest margin is calculated by dividing net interest income by average interest-earning assets.
|
(5)
|
Cost of funds is calculated by dividing interest expense on deposits by the sum of interest-bearing and noninterest-bearing demand deposits.
|
|
|
Year Ended December 31, 2019 vs. 2018
|
|
Year Ended December 31, 2018 vs. 2017
|
||||||||||||||||||||
|
|
Increase (Decrease) Due to
|
|
Net Increase (Decrease)
|
|
Increase (Decrease) Due to
|
|
Net Increase (Decrease)
|
||||||||||||||||
($ in thousands)
|
|
Volume
|
|
Rate
|
|
|
Volume
|
|
Rate
|
|
||||||||||||||
Interest earned on:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans
|
|
$
|
7,257
|
|
|
$
|
1,573
|
|
|
$
|
8,830
|
|
|
$
|
8,465
|
|
|
$
|
6,856
|
|
|
$
|
15,321
|
|
Investment securities
|
|
158
|
|
|
74
|
|
|
232
|
|
|
563
|
|
|
547
|
|
|
1,110
|
|
||||||
Other interest-earning assets
|
|
(63
|
)
|
|
247
|
|
|
184
|
|
|
1,143
|
|
|
858
|
|
|
2,001
|
|
||||||
Total interest income
|
|
7,352
|
|
|
1,894
|
|
|
9,246
|
|
|
10,171
|
|
|
8,261
|
|
|
18,432
|
|
||||||
Interest paid on:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings, NOW, and money market deposits
|
|
495
|
|
|
1,196
|
|
|
1,691
|
|
|
(336
|
)
|
|
570
|
|
|
234
|
|
||||||
Time deposits
|
|
462
|
|
|
3,946
|
|
|
4,408
|
|
|
2,632
|
|
|
4,725
|
|
|
7,357
|
|
||||||
Other borrowings
|
|
(167
|
)
|
|
28
|
|
|
(139
|
)
|
|
248
|
|
|
15
|
|
|
263
|
|
||||||
Total interest expense
|
|
790
|
|
|
5,170
|
|
|
5,960
|
|
|
2,544
|
|
|
5,310
|
|
|
7,854
|
|
||||||
Change in net interest income
|
|
$
|
6,562
|
|
|
$
|
(3,276
|
)
|
|
$
|
3,286
|
|
|
$
|
7,627
|
|
|
$
|
2,951
|
|
|
$
|
10,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
||||||
Interest and fees on loans
|
|
$
|
85,667
|
|
|
$
|
76,837
|
|
|
$
|
8,830
|
|
|
11.5
|
%
|
Interest on tax-exempt investment securities
|
|
154
|
|
|
159
|
|
|
(5
|
)
|
|
(3.1
|
)%
|
|||
Interest on investment securities
|
|
3,802
|
|
|
3,565
|
|
|
237
|
|
|
6.6
|
%
|
|||
Interest and dividends on other interest-earning assets
|
|
3,322
|
|
|
3,138
|
|
|
184
|
|
|
5.9
|
%
|
|||
Total interest income
|
|
92,945
|
|
|
83,699
|
|
|
9,246
|
|
|
11.0
|
%
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|||||||
Interest on deposits
|
|
23,439
|
|
|
17,340
|
|
|
6,099
|
|
|
35.2
|
%
|
|||
Interest on borrowings
|
|
472
|
|
|
611
|
|
|
(139
|
)
|
|
(22.7
|
)%
|
|||
Total interest expense
|
|
23,911
|
|
|
17,951
|
|
|
5,960
|
|
|
33.2
|
%
|
|||
Net interest income
|
|
$
|
69,034
|
|
|
$
|
65,748
|
|
|
$
|
3,286
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2018
|
|
2017
|
|
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|||||||
Interest and fees on loans
|
|
$
|
76,837
|
|
|
$
|
61,516
|
|
|
$
|
15,321
|
|
|
24.9
|
%
|
Interest on tax-exempt investment securities
|
|
159
|
|
|
186
|
|
|
(27
|
)
|
|
(14.5
|
)%
|
|||
Interest on investment securities
|
|
3,565
|
|
|
2,428
|
|
|
1,137
|
|
|
46.8
|
%
|
|||
Interest and dividends on other interest-earning assets
|
|
3,138
|
|
|
1,137
|
|
|
2,001
|
|
|
176.0
|
%
|
|||
Total interest income
|
|
83,699
|
|
|
65,267
|
|
|
18,432
|
|
|
28.2
|
%
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|||||||
Interest on deposits
|
|
17,340
|
|
|
9,749
|
|
|
7,591
|
|
|
77.9
|
%
|
|||
Interest on borrowings
|
|
611
|
|
|
348
|
|
|
263
|
|
|
75.6
|
%
|
|||
Total interest expense
|
|
17,951
|
|
|
10,097
|
|
|
7,854
|
|
|
77.8
|
%
|
|||
Net interest income
|
|
$
|
65,748
|
|
|
$
|
55,170
|
|
|
$
|
10,578
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Service charges and fees on deposits
|
|
$
|
1,544
|
|
|
$
|
1,500
|
|
|
$
|
44
|
|
|
2.9
|
%
|
Loan servicing income
|
|
2,309
|
|
|
2,160
|
|
|
149
|
|
|
6.9
|
%
|
|||
Gain on sale of loans
|
|
5,996
|
|
|
5,560
|
|
|
436
|
|
|
7.8
|
%
|
|||
Gain on sale of securities
|
|
786
|
|
|
—
|
|
|
786
|
|
|
—
|
%
|
|||
Other income
|
|
1,234
|
|
|
1,234
|
|
|
—
|
|
|
—
|
%
|
|||
Total noninterest income
|
|
$
|
11,869
|
|
|
$
|
10,454
|
|
|
$
|
1,415
|
|
|
13.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2018
|
|
2017
|
|
|
|||||||||
Service charges and fees on deposits
|
|
$
|
1,500
|
|
|
$
|
1,377
|
|
|
$
|
123
|
|
|
8.9
|
%
|
Loan servicing income
|
|
2,160
|
|
|
2,446
|
|
|
(286
|
)
|
|
(11.7
|
)%
|
|||
Gain on sale of loans
|
|
5,560
|
|
|
9,000
|
|
|
(3,440
|
)
|
|
(38.2
|
)%
|
|||
Other income
|
|
1,234
|
|
|
1,071
|
|
|
163
|
|
|
15.2
|
%
|
|||
Total noninterest income
|
|
$
|
10,454
|
|
|
$
|
13,894
|
|
|
$
|
(3,440
|
)
|
|
(24.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
|
|||||||||
Salaries and employee benefits
|
|
$
|
26,139
|
|
|
$
|
24,473
|
|
|
$
|
1,666
|
|
|
6.8
|
%
|
Occupancy and equipment
|
|
5,545
|
|
|
4,992
|
|
|
553
|
|
|
11.1
|
%
|
|||
Professional fees
|
|
2,730
|
|
|
2,176
|
|
|
554
|
|
|
25.5
|
%
|
|||
Marketing and business promotion
|
|
1,550
|
|
|
2,010
|
|
|
(460
|
)
|
|
(22.9
|
)%
|
|||
Data processing
|
|
1,365
|
|
|
1,220
|
|
|
145
|
|
|
11.9
|
%
|
|||
Director fees and expenses
|
|
751
|
|
|
942
|
|
|
(191
|
)
|
|
(20.3
|
)%
|
|||
Regulatory assessments
|
|
551
|
|
|
544
|
|
|
7
|
|
|
1.3
|
%
|
|||
Other expenses
|
|
3,684
|
|
|
3,869
|
|
|
(185
|
)
|
|
(4.8
|
)%
|
|||
Total noninterest expense
|
|
$
|
42,315
|
|
|
$
|
40,226
|
|
|
$
|
2,089
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
Amount Change
|
|
Percentage Change
|
|||||||||
($ in thousands)
|
|
2018
|
|
2017
|
|
|
|||||||||
Salaries and employee benefits
|
|
$
|
24,473
|
|
|
$
|
22,829
|
|
|
$
|
1,644
|
|
|
7.2
|
%
|
Occupancy and equipment
|
|
4,992
|
|
|
4,426
|
|
|
566
|
|
|
12.8
|
%
|
|||
Professional fees
|
|
2,176
|
|
|
1,842
|
|
|
334
|
|
|
18.1
|
%
|
|||
Marketing and business promotion
|
|
2,010
|
|
|
1,647
|
|
|
363
|
|
|
22.0
|
%
|
|||
Data processing
|
|
1,220
|
|
|
1,074
|
|
|
146
|
|
|
13.6
|
%
|
|||
Director fees and expenses
|
|
942
|
|
|
757
|
|
|
185
|
|
|
24.4
|
%
|
|||
Regulatory assessments
|
|
544
|
|
|
423
|
|
|
121
|
|
|
28.6
|
%
|
|||
Other expenses
|
|
3,869
|
|
|
2,897
|
|
|
972
|
|
|
33.6
|
%
|
|||
Total noninterest expense
|
|
$
|
40,226
|
|
|
$
|
35,895
|
|
|
$
|
4,331
|
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2019
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
$
|
38,793
|
|
|
$
|
38,738
|
|
|
$
|
(55
|
)
|
|
$
|
68,975
|
|
|
$
|
67,921
|
|
|
$
|
(1,054
|
)
|
Collateralized mortgage obligations
|
|
44,115
|
|
|
43,894
|
|
|
(221
|
)
|
|
56,625
|
|
|
55,649
|
|
|
(976
|
)
|
||||||
SBA loan pool securities
|
|
14,179
|
|
|
14,152
|
|
|
(27
|
)
|
|
23,144
|
|
|
22,632
|
|
|
(512
|
)
|
||||||
Municipal bonds
|
|
764
|
|
|
782
|
|
|
18
|
|
|
784
|
|
|
789
|
|
|
5
|
|
||||||
Total securities available-for-sale
|
|
$
|
97,851
|
|
|
$
|
97,566
|
|
|
$
|
(285
|
)
|
|
$
|
149,528
|
|
|
$
|
146,991
|
|
|
$
|
(2,537
|
)
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
$
|
15,215
|
|
|
$
|
15,204
|
|
|
$
|
(11
|
)
|
|
$
|
16,659
|
|
|
$
|
16,057
|
|
|
$
|
(602
|
)
|
Municipal bonds
|
|
4,939
|
|
|
5,276
|
|
|
337
|
|
|
5,101
|
|
|
5,095
|
|
|
(6
|
)
|
||||||
Total securities held-to-maturity
|
|
$
|
20,154
|
|
|
$
|
20,480
|
|
|
$
|
326
|
|
|
$
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
883
|
|
|
1.51
|
%
|
|
$
|
7,489
|
|
|
1.84
|
%
|
|
$
|
30,421
|
|
|
2.19
|
%
|
|
$
|
38,793
|
|
|
2.11
|
%
|
Collateralized mortgage obligations
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
10,729
|
|
|
2.01
|
%
|
|
33,386
|
|
|
2.22
|
%
|
|
44,115
|
|
|
2.17
|
%
|
|||||
SBA loan pool securities
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
3,661
|
|
|
2.43
|
%
|
|
10,518
|
|
|
2.34
|
%
|
|
14,179
|
|
|
2.37
|
%
|
|||||
Municipal bonds
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
764
|
|
|
2.74
|
%
|
|
—
|
|
|
—
|
%
|
|
764
|
|
|
2.74
|
%
|
|||||
Total securities available-for-sale
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
883
|
|
|
1.51
|
%
|
|
$
|
22,643
|
|
|
2.04
|
%
|
|
$
|
74,325
|
|
|
2.23
|
%
|
|
$
|
97,851
|
|
|
2.18
|
%
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
1,127
|
|
|
1.81
|
%
|
|
$
|
14,088
|
|
|
2.74
|
%
|
|
$
|
15,215
|
|
|
2.67
|
%
|
Municipal bonds
|
|
102
|
|
|
1.86
|
%
|
|
2,226
|
|
|
2.74
|
%
|
|
285
|
|
|
3.82
|
%
|
|
2,326
|
|
|
4.87
|
%
|
|
4,939
|
|
|
3.78
|
%
|
|||||
Total securities held-to-maturity
|
|
$
|
102
|
|
|
1.86
|
%
|
|
$
|
2,226
|
|
|
2.74
|
%
|
|
$
|
1,412
|
|
|
2.22
|
%
|
|
$
|
16,414
|
|
|
3.04
|
%
|
|
$
|
20,154
|
|
|
2.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential property
|
|
$
|
760
|
|
|
—
|
|
|
$
|
270
|
|
|
—
|
|
|
417
|
|
SBA property
|
|
150
|
|
|
5,481
|
|
|
3,857
|
|
|
—
|
|
|
1,024
|
|
||
Total real estate loans
|
|
910
|
|
|
5,481
|
|
|
4,127
|
|
|
—
|
|
|
1,441
|
|
||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|||||||
SBA commercial term
|
|
1,065
|
|
|
300
|
|
|
1,170
|
|
|
2,150
|
|
|
500
|
|
||
Total commercial and industrial loans
|
|
1,065
|
|
|
300
|
|
|
1,170
|
|
|
2,150
|
|
|
500
|
|
||
Loans held-for-sale
|
|
$
|
1,975
|
|
|
5,781
|
|
|
$
|
5,297
|
|
|
2,150
|
|
|
1,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
($ in thousands)
|
|
Amount
|
|
Percentage to Total
|
|
Amount
|
|
Percentage to Total
|
|
Amount
|
|
Percentage to Total
|
|
Amount
|
|
Percentage to Total
|
|
Amount
|
|
Percentage to Total
|
|||||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial property
|
|
803,014
|
|
|
55.4
|
%
|
|
709,409
|
|
|
53.1
|
%
|
|
662,031
|
|
|
55.5
|
%
|
|
596,392
|
|
|
57.8
|
%
|
|
484,749
|
|
|
57.5
|
%
|
|||||
Residential property
|
|
235,046
|
|
|
16.3
|
%
|
|
233,816
|
|
|
17.5
|
%
|
|
168,560
|
|
|
14.2
|
%
|
|
140,419
|
|
|
13.6
|
%
|
|
129,215
|
|
|
15.3
|
%
|
|||||
SBA property
|
|
129,837
|
|
|
8.9
|
%
|
|
120,939
|
|
|
9.0
|
%
|
|
131,740
|
|
|
11.1
|
%
|
|
105,221
|
|
|
10.2
|
%
|
|
87,926
|
|
|
10.4
|
%
|
|||||
Construction
|
|
19,164
|
|
|
1.3
|
%
|
|
27,323
|
|
|
2.0
|
%
|
|
23,117
|
|
|
1.9
|
%
|
|
14,973
|
|
|
1.5
|
%
|
|
2,091
|
|
|
0.2
|
%
|
|||||
Total real estate loans
|
|
1,187,061
|
|
|
81.9
|
%
|
|
1,091,487
|
|
|
81.6
|
%
|
|
985,448
|
|
|
82.7
|
%
|
|
857,005
|
|
|
83.1
|
%
|
|
703,981
|
|
|
83.4
|
%
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial term
|
|
103,380
|
|
|
7.1
|
%
|
|
102,133
|
|
|
7.6
|
%
|
|
77,402
|
|
|
6.5
|
%
|
|
64,898
|
|
|
6.3
|
%
|
|
51,721
|
|
|
6.1
|
%
|
|||||
Commercial lines of credit
|
|
111,768
|
|
|
7.7
|
%
|
|
91,994
|
|
|
6.9
|
%
|
|
62,751
|
|
|
5.3
|
%
|
|
48,694
|
|
|
4.7
|
%
|
|
33,949
|
|
|
4.0
|
%
|
|||||
SBA commercial term
|
|
25,332
|
|
|
1.7
|
%
|
|
27,147
|
|
|
2.0
|
%
|
|
30,376
|
|
|
2.6
|
%
|
|
26,643
|
|
|
2.6
|
%
|
|
25,466
|
|
|
3.0
|
%
|
|||||
Total commercial and industrial loans
|
|
240,480
|
|
|
16.5
|
%
|
|
221,274
|
|
|
16.5
|
%
|
|
170,529
|
|
|
14.4
|
%
|
|
140,235
|
|
|
13.6
|
%
|
|
111,136
|
|
|
13.1
|
%
|
|||||
Other consumer loans
|
|
23,290
|
|
|
1.6
|
%
|
|
25,921
|
|
|
1.9
|
%
|
|
34,022
|
|
|
2.9
|
%
|
|
33,872
|
|
|
3.3
|
%
|
|
29,252
|
|
|
3.5
|
%
|
|||||
Loans held-for-investment
|
|
1,450,831
|
|
|
100.0
|
%
|
|
1,338,682
|
|
|
100.0
|
%
|
|
1,189,999
|
|
|
100.0
|
%
|
|
1,031,112
|
|
|
100.0
|
%
|
|
844,369
|
|
|
100.0
|
%
|
|||||
Allowance for loan losses
|
|
(14,380
|
)
|
|
|
|
(13,167
|
)
|
|
|
|
(12,224
|
)
|
|
|
|
(11,320
|
)
|
|
|
|
(9,345
|
)
|
|
|
||||||||||
Net loans held-for-investment
|
|
$
|
1,436,451
|
|
|
|
|
$
|
1,325,515
|
|
|
|
|
$
|
1,177,775
|
|
|
|
|
$
|
1,019,792
|
|
|
|
|
$
|
835,024
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Within One Year
|
|
Due After One Year to Five Years
|
|
Due After Five Years
|
|
Total
|
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial property
|
|
$
|
71,369
|
|
|
$
|
563,842
|
|
|
$
|
167,803
|
|
|
$
|
803,014
|
|
Residential property
|
|
—
|
|
|
—
|
|
|
235,046
|
|
|
235,046
|
|
||||
SBA property
|
|
2,134
|
|
|
58
|
|
|
127,645
|
|
|
129,837
|
|
||||
Construction
|
|
18,957
|
|
|
207
|
|
|
—
|
|
|
19,164
|
|
||||
Total real estate loans
|
|
92,460
|
|
|
564,107
|
|
|
530,494
|
|
|
1,187,061
|
|
||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial term
|
|
3,461
|
|
|
57,180
|
|
|
42,739
|
|
|
103,380
|
|
||||
Commercial lines of credit
|
|
108,089
|
|
|
3,679
|
|
|
—
|
|
|
111,768
|
|
||||
SBA commercial term
|
|
47
|
|
|
3,467
|
|
|
21,818
|
|
|
25,332
|
|
||||
Total commercial and industrial loans
|
|
111,597
|
|
|
64,326
|
|
|
64,557
|
|
|
240,480
|
|
||||
Other consumer loans
|
|
2,427
|
|
|
20,518
|
|
|
345
|
|
|
23,290
|
|
||||
Loans held-for-investment
|
|
$
|
206,484
|
|
|
$
|
648,951
|
|
|
$
|
595,396
|
|
|
$
|
1,450,831
|
|
Loans with variable (floating) interest rates
|
|
$
|
191,734
|
|
|
$
|
355,050
|
|
|
$
|
274,458
|
|
|
$
|
821,242
|
|
Loans with predetermined (fixed) interest rates
|
|
14,750
|
|
|
293,901
|
|
|
320,938
|
|
|
629,589
|
|
||||
Total
|
|
$
|
206,484
|
|
|
$
|
648,951
|
|
|
$
|
595,396
|
|
|
$
|
1,450,831
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||
($ in thousands)
|
|
Allowance for Loan Losses
|
|
Percentage of Loans to Total Loans
|
|
Allowance for Loan Losses
|
|
Percentage of Loans to Total Loans
|
|
Allowance for Loan Losses
|
|
Percentage of Loans to Total Loans
|
|
Allowance for Loan Losses
|
|
Percentage of Loans to Total Loans
|
|
Allowance for Loan Losses
|
|
Percentage of Loans to Total Loans
|
|||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial property
|
|
$
|
6,942
|
|
|
55.4
|
%
|
|
6,216
|
|
|
53.1
|
%
|
|
6,366
|
|
|
55.5
|
%
|
|
5,904
|
|
|
57.8
|
%
|
|
3,615
|
|
|
57.5
|
%
|
Residential property
|
|
1,167
|
|
|
16.3
|
%
|
|
1,152
|
|
|
17.5
|
%
|
|
833
|
|
|
14.2
|
%
|
|
674
|
|
|
13.6
|
%
|
|
527
|
|
|
15.3
|
%
|
|
SBA property
|
|
1,446
|
|
|
8.9
|
%
|
|
1,225
|
|
|
9.0
|
%
|
|
1,124
|
|
|
11.1
|
%
|
|
801
|
|
|
10.2
|
%
|
|
822
|
|
|
10.4
|
%
|
|
Construction
|
|
299
|
|
|
1.3
|
%
|
|
511
|
|
|
2.0
|
%
|
|
184
|
|
|
1.9
|
%
|
|
118
|
|
|
1.5
|
%
|
|
10
|
|
|
0.2
|
%
|
|
Total real estate loans
|
|
9,854
|
|
|
81.9
|
%
|
|
9,104
|
|
|
81.6
|
%
|
|
8,507
|
|
|
82.7
|
%
|
|
7,497
|
|
|
83.1
|
%
|
|
4,974
|
|
|
83.4
|
%
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial term
|
|
1,848
|
|
|
7.1
|
%
|
|
1,525
|
|
|
7.6
|
%
|
|
1,513
|
|
|
6.5
|
%
|
|
1,828
|
|
|
6.3
|
%
|
|
1,408
|
|
|
6.1
|
%
|
|
Commercial lines of credit
|
|
1,805
|
|
|
7.7
|
%
|
|
1,443
|
|
|
6.9
|
%
|
|
1,126
|
|
|
5.3
|
%
|
|
839
|
|
|
4.7
|
%
|
|
1,744
|
|
|
4.0
|
%
|
|
SBA commercial term
|
|
701
|
|
|
1.7
|
%
|
|
909
|
|
|
2.0
|
%
|
|
909
|
|
|
2.6
|
%
|
|
990
|
|
|
2.6
|
%
|
|
1,000
|
|
|
3.0
|
%
|
|
Total commercial and industrial loans
|
|
4,354
|
|
|
16.5
|
%
|
|
3,877
|
|
|
16.5
|
%
|
|
3,548
|
|
|
14.4
|
%
|
|
3,657
|
|
|
13.6
|
%
|
|
4,152
|
|
|
13.1
|
%
|
|
Other consumer loans
|
|
172
|
|
|
1.6
|
%
|
|
186
|
|
|
1.9
|
%
|
|
169
|
|
|
2.9
|
%
|
|
166
|
|
|
3.3
|
%
|
|
219
|
|
|
3.5
|
%
|
|
Total
|
|
$
|
14,380
|
|
|
100.0
|
%
|
|
13,167
|
|
|
100.0
|
%
|
|
12,224
|
|
|
100.0
|
%
|
|
11,320
|
|
|
100.0
|
%
|
|
9,345
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or For the Year Ended December 31,
|
||||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of year
|
|
$
|
13,167
|
|
|
$
|
12,224
|
|
|
$
|
11,320
|
|
|
$
|
9,345
|
|
|
$
|
9,432
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
|
31
|
|
|
381
|
|
|
168
|
|
|
—
|
|
|
622
|
|
|||||
Commercial and industrial
|
|
3,350
|
|
|
272
|
|
|
1,320
|
|
|
729
|
|
|
597
|
|
|||||
Other consumer
|
|
198
|
|
|
356
|
|
|
88
|
|
|
38
|
|
|
131
|
|
|||||
Total charge-offs
|
|
3,579
|
|
|
1,009
|
|
|
1,576
|
|
|
767
|
|
|
1,350
|
|
|||||
Recoveries on loans previously charged off
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
|
6
|
|
|
213
|
|
|
1
|
|
|
1
|
|
|
35
|
|
|||||
Commercial and industrial
|
|
378
|
|
|
356
|
|
|
580
|
|
|
406
|
|
|
687
|
|
|||||
Other consumer
|
|
171
|
|
|
152
|
|
|
72
|
|
|
52
|
|
|
128
|
|
|||||
Total recoveries
|
|
555
|
|
|
721
|
|
|
653
|
|
|
459
|
|
|
850
|
|
|||||
Net charge-offs
|
|
3,024
|
|
|
288
|
|
|
923
|
|
|
308
|
|
|
500
|
|
|||||
Provision (reversal) for loan losses
|
|
4,237
|
|
|
1,231
|
|
|
1,827
|
|
|
2,283
|
|
|
413
|
|
|||||
Balance at end of year
|
|
$
|
14,380
|
|
|
$
|
13,167
|
|
|
$
|
12,224
|
|
|
$
|
11,320
|
|
|
$
|
9,345
|
|
Loans held-for-investment:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at end of year
|
|
$
|
1,450,831
|
|
|
$
|
1,338,682
|
|
|
$
|
1,189,999
|
|
|
$
|
1,031,112
|
|
|
$
|
844,369
|
|
Average balance
|
|
1,378,073
|
|
|
1,254,512
|
|
|
1,099,725
|
|
|
942,037
|
|
|
792,840
|
|
|||||
Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs to average loans held-for-investment
|
|
0.22
|
%
|
|
0.02
|
%
|
|
0.08
|
%
|
|
0.03
|
%
|
|
0.06
|
%
|
|||||
Allowance for loan losses to loans held-for-investment
|
|
0.99
|
%
|
|
0.98
|
%
|
|
1.03
|
%
|
|
1.10
|
%
|
|
1.11
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential property
|
|
$
|
697
|
|
|
$
|
95
|
|
|
$
|
1,045
|
|
|
$
|
—
|
|
|
$
|
—
|
|
SBA property
|
|
794
|
|
|
183
|
|
|
—
|
|
|
—
|
|
|
172
|
|
|||||
Total real estate loans
|
|
1,491
|
|
|
278
|
|
|
1,045
|
|
|
—
|
|
|
172
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
—
|
|
|
—
|
|
|
—
|
|
|
442
|
|
|
—
|
|
|||||
Commercial lines of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,500
|
|
|
—
|
|
|||||
SBA commercial term
|
|
189
|
|
|
—
|
|
|
2
|
|
|
37
|
|
|
34
|
|
|||||
Total commercial and industrial loans
|
|
189
|
|
|
—
|
|
|
2
|
|
|
1,979
|
|
|
34
|
|
|||||
Other consumer loans
|
|
138
|
|
|
99
|
|
|
294
|
|
|
115
|
|
|
250
|
|
|||||
Total
|
|
$
|
1,818
|
|
|
$
|
377
|
|
|
$
|
1,341
|
|
|
$
|
2,094
|
|
|
$
|
456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial property
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
318
|
|
|
$
|
57
|
|
|
$
|
78
|
|
Residential property
|
|
—
|
|
|
302
|
|
|
730
|
|
|
—
|
|
|
—
|
|
|||||
SBA property
|
|
442
|
|
|
540
|
|
|
1,810
|
|
|
602
|
|
|
998
|
|
|||||
Total real estate loans
|
|
442
|
|
|
842
|
|
|
2,858
|
|
|
659
|
|
|
1,076
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
—
|
|
|
—
|
|
|
4
|
|
|
169
|
|
|
706
|
|
|||||
Commercial lines of credit
|
|
1,888
|
|
|
—
|
|
|
10
|
|
|
115
|
|
|
—
|
|
|||||
SBA commercial term
|
|
159
|
|
|
203
|
|
|
338
|
|
|
866
|
|
|
554
|
|
|||||
Total commercial and industrial loans
|
|
2,047
|
|
|
203
|
|
|
352
|
|
|
1,150
|
|
|
1,260
|
|
|||||
Other consumer loans
|
|
48
|
|
|
16
|
|
|
24
|
|
|
39
|
|
|
36
|
|
|||||
Total nonaccrual loans
|
|
2,537
|
|
|
1,061
|
|
|
3,234
|
|
|
1,848
|
|
|
2,372
|
|
|||||
Loans past due 90 days or more still on accrual
|
|
287
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming loans
|
|
2,824
|
|
|
1,061
|
|
|
3,234
|
|
|
1,848
|
|
|
2,372
|
|
|||||
Other real estate owned
|
|
—
|
|
|
—
|
|
|
99
|
|
|
506
|
|
|
—
|
|
|||||
Total nonperforming assets
|
|
$
|
2,824
|
|
|
$
|
1,061
|
|
|
$
|
3,333
|
|
|
$
|
2,354
|
|
|
$
|
2,372
|
|
Nonperforming loans to loans held-for-investment
|
|
0.19
|
%
|
|
0.08
|
%
|
|
0.27
|
%
|
|
0.18
|
%
|
|
0.28
|
%
|
|||||
Nonperforming assets to total assets
|
|
0.16
|
%
|
|
0.06
|
%
|
|
0.23
|
%
|
|
0.19
|
%
|
|
0.23
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial property
|
|
$
|
339
|
|
|
$
|
—
|
|
|
$
|
318
|
|
|
$
|
435
|
|
|
$
|
486
|
|
SBA property
|
|
415
|
|
|
315
|
|
|
1,373
|
|
|
1,540
|
|
|
1,899
|
|
|||||
Total real estate loans
|
|
754
|
|
|
315
|
|
|
1,691
|
|
|
1,975
|
|
|
2,385
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
28
|
|
|
68
|
|
|
199
|
|
|
458
|
|
|
1,189
|
|
|||||
Commercial lines of credit
|
|
—
|
|
|
—
|
|
|
10
|
|
|
115
|
|
|
—
|
|
|||||
SBA commercial term
|
|
39
|
|
|
180
|
|
|
367
|
|
|
311
|
|
|
512
|
|
|||||
Total commercial and industrial loans
|
|
67
|
|
|
248
|
|
|
576
|
|
|
884
|
|
|
1,701
|
|
|||||
Other consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total TDRs
|
|
$
|
821
|
|
|
$
|
563
|
|
|
$
|
2,267
|
|
|
$
|
2,859
|
|
|
$
|
4,086
|
|
Total nonaccrual TDRs, included above
|
|
$
|
121
|
|
|
$
|
131
|
|
|
$
|
1,675
|
|
|
$
|
663
|
|
|
$
|
1,562
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Three Months or Less
|
|
Three to Six Months
|
|
Six Months to One Year
|
|
One to Three Years
|
|
Over Three Years
|
|
Total
|
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Time deposits less than $100,000
|
|
$
|
41,456
|
|
|
$
|
29,899
|
|
|
$
|
92,695
|
|
|
$
|
10,165
|
|
|
$
|
1,557
|
|
|
$
|
175,772
|
|
Time deposits of $100,000 through $250,000
|
|
111,182
|
|
|
53,198
|
|
|
121,674
|
|
|
5,537
|
|
|
—
|
|
|
291,591
|
|
||||||
Time deposits of more than $250,000
|
|
167,825
|
|
|
38,740
|
|
|
77,334
|
|
|
5,827
|
|
|
—
|
|
|
289,726
|
|
||||||
Total
|
|
$
|
320,463
|
|
|
$
|
121,837
|
|
|
$
|
291,703
|
|
|
$
|
21,529
|
|
|
$
|
1,557
|
|
|
$
|
757,089
|
|
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)
|
||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||
Common tier 1 capital (to risk-weighted assets)
|
|
15.87
|
%
|
|
15.68
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
Total capital (to risk-weighted assets)
|
|
16.90
|
%
|
|
16.71
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
Tier 1 capital (to risk-weighted assets)
|
|
15.87
|
%
|
|
15.68
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
Tier 1 capital (to average assets)
|
|
13.23
|
%
|
|
13.06
|
%
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||
Commitments to extend credit
|
|
$
|
171,608
|
|
|
$
|
127,443
|
|
Standby letters of credit
|
|
3,300
|
|
|
2,998
|
|
||
Commercial letters of credit
|
|
292
|
|
|
477
|
|
||
Total
|
|
$
|
175,200
|
|
|
$
|
130,918
|
|
|
|
|
|
|
($ in thousands)
|
|
Within One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
Over Five Years
|
|
Total
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
|
$
|
734,003
|
|
|
$
|
21,529
|
|
|
$
|
1,557
|
|
|
$
|
—
|
|
|
$
|
757,089
|
|
FHLB advances
|
|
10,000
|
|
|
10,000
|
|
|
—
|
|
|
—
|
|
|
20,000
|
|
|||||
Operating leases
|
|
2,686
|
|
|
4,454
|
|
|
2,375
|
|
|
1,352
|
|
|
10,867
|
|
|||||
Total
|
|
$
|
746,689
|
|
|
$
|
35,983
|
|
|
$
|
3,932
|
|
|
$
|
1,352
|
|
|
$
|
787,956
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||
|
|
2019
|
|
2018
|
||||||||
Simulated Rate Changes
|
|
Net Interest Income Sensitivity
|
|
Economic Value of Equity Sensitivity
|
|
Net Interest Income Sensitivity
|
|
Economic Value of Equity Sensitivity
|
||||
+200
|
|
20.3
|
%
|
|
7.7
|
%
|
|
21.4
|
%
|
|
6.0
|
%
|
+100
|
|
10.4
|
%
|
|
4.7
|
%
|
|
11.0
|
%
|
|
3.7
|
%
|
-100
|
|
(11.7
|
)%
|
|
(6.1
|
)%
|
|
(13.7
|
)%
|
|
(5.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
17,808
|
|
|
$
|
24,121
|
|
Interest-bearing deposits in other financial institutions
|
|
128,420
|
|
|
138,152
|
|
||
Total cash and cash equivalents
|
|
146,228
|
|
|
162,273
|
|
||
Securities available-for-sale, at fair value
|
|
97,566
|
|
|
146,991
|
|
||
Securities held-to-maturity, at amortized cost (fair value of $20,480 and $21,152 at December 31, 2019 and 2018, respectively)
|
|
20,154
|
|
|
21,760
|
|
||
Total investment securities
|
|
117,720
|
|
|
168,751
|
|
||
Loans held-for-sale
|
|
1,975
|
|
|
5,781
|
|
||
Loans held-for-investment, net of deferred loan costs (fees)
|
|
1,450,831
|
|
|
1,338,682
|
|
||
Allowance for loan losses
|
|
(14,380
|
)
|
|
(13,167
|
)
|
||
Net loans held-for-investment
|
|
1,436,451
|
|
|
1,325,515
|
|
||
Premises and equipment, net
|
|
3,760
|
|
|
4,588
|
|
||
Federal Home Loan Bank and other restricted stock, at cost
|
|
8,345
|
|
|
7,433
|
|
||
Deferred tax assets, net
|
|
5,288
|
|
|
3,377
|
|
||
Servicing assets
|
|
6,798
|
|
|
7,666
|
|
||
Operating lease assets
|
|
8,991
|
|
|
—
|
|
||
Accrued interest receivable and other assets
|
|
10,772
|
|
|
11,644
|
|
||
Total assets
|
|
$
|
1,746,328
|
|
|
$
|
1,697,028
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing demand
|
|
$
|
360,039
|
|
|
$
|
329,270
|
|
Savings, NOW and money market accounts
|
|
362,179
|
|
|
313,610
|
|
||
Time deposits of $250,000 or less
|
|
467,363
|
|
|
519,634
|
|
||
Time deposits of more than $250,000
|
|
289,726
|
|
|
281,239
|
|
||
Total deposits
|
|
1,479,307
|
|
|
1,443,753
|
|
||
Federal Home Loan Bank advances
|
|
20,000
|
|
|
30,000
|
|
||
Operating lease liabilities
|
|
9,990
|
|
|
—
|
|
||
Accrued interest payable and other liabilities
|
|
10,197
|
|
|
12,979
|
|
||
Total liabilities
|
|
1,519,494
|
|
|
1,486,732
|
|
||
Commitments and contingent liabilities
|
|
|
|
|
||||
Preferred stock, 10,000,000 shares authorized, no par value, no issued and outstanding shares
|
|
—
|
|
|
—
|
|
||
Common stock, 60,000,000 shares authorized, no par value; issued and outstanding 15,707,016 and 15,977,754 shares, respectively, and included 37,400 and 0 shares of unvested restricted stock, respectively, at December 31, 2019 and 2018
|
|
169,221
|
|
|
174,366
|
|
||
Retained earnings
|
|
57,670
|
|
|
37,577
|
|
||
Accumulated other comprehensive loss, net
|
|
(57
|
)
|
|
(1,647
|
)
|
||
Total shareholders’ equity
|
|
226,834
|
|
|
210,296
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
1,746,328
|
|
|
$
|
1,697,028
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Interest and fees on loans
|
|
$
|
85,667
|
|
|
$
|
76,837
|
|
|
$
|
61,516
|
|
Interest on tax-exempt investment securities
|
|
154
|
|
|
159
|
|
|
186
|
|
|||
Interest on investment securities
|
|
3,802
|
|
|
3,565
|
|
|
2,428
|
|
|||
Interest and dividends on other interest-earning assets
|
|
3,322
|
|
|
3,138
|
|
|
1,137
|
|
|||
Total interest income
|
|
92,945
|
|
|
83,699
|
|
|
65,267
|
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Interest on deposits
|
|
23,439
|
|
|
17,340
|
|
|
9,749
|
|
|||
Interest on borrowings
|
|
472
|
|
|
611
|
|
|
348
|
|
|||
Total interest expense
|
|
23,911
|
|
|
17,951
|
|
|
10,097
|
|
|||
Net interest income
|
|
69,034
|
|
|
65,748
|
|
|
55,170
|
|
|||
Provision for loan losses
|
|
4,237
|
|
|
1,231
|
|
|
1,827
|
|
|||
Net interest income after provision for loan losses
|
|
64,797
|
|
|
64,517
|
|
|
53,343
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
||||||
Service charges and fees on deposits
|
|
1,544
|
|
|
1,500
|
|
|
1,377
|
|
|||
Loan servicing income
|
|
2,309
|
|
|
2,160
|
|
|
2,446
|
|
|||
Gain on sale of loans
|
|
5,996
|
|
|
5,560
|
|
|
9,000
|
|
|||
Gain on sale of securities available-for-sale
|
|
786
|
|
|
—
|
|
|
—
|
|
|||
Other income
|
|
1,234
|
|
|
1,234
|
|
|
1,071
|
|
|||
Total noninterest income
|
|
11,869
|
|
|
10,454
|
|
|
13,894
|
|
|||
Noninterest expense:
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
26,139
|
|
|
24,473
|
|
|
22,829
|
|
|||
Occupancy and equipment
|
|
5,545
|
|
|
4,992
|
|
|
4,426
|
|
|||
Professional fees
|
|
2,730
|
|
|
2,176
|
|
|
1,842
|
|
|||
Marketing and business promotion
|
|
1,550
|
|
|
2,010
|
|
|
1,647
|
|
|||
Data processing
|
|
1,365
|
|
|
1,220
|
|
|
1,074
|
|
|||
Director fees and expenses
|
|
751
|
|
|
942
|
|
|
757
|
|
|||
Regulatory assessments
|
|
551
|
|
|
544
|
|
|
423
|
|
|||
Other expenses
|
|
3,684
|
|
|
3,869
|
|
|
2,897
|
|
|||
Total noninterest expense
|
|
42,315
|
|
|
40,226
|
|
|
35,895
|
|
|||
Income before income taxes
|
|
34,351
|
|
|
34,745
|
|
|
31,342
|
|
|||
Income tax expense
|
|
10,243
|
|
|
10,444
|
|
|
14,939
|
|
|||
Net income
|
|
$
|
24,108
|
|
|
$
|
24,301
|
|
|
$
|
16,403
|
|
|
|
|
|
|
|
|
||||||
Earnings per common share, basic
|
|
$
|
1.52
|
|
|
$
|
1.69
|
|
|
$
|
1.22
|
|
Earnings per common share, diluted
|
|
$
|
1.49
|
|
|
$
|
1.65
|
|
|
$
|
1.21
|
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding, basic
|
|
15,873,383
|
|
|
14,397,075
|
|
|
13,408,030
|
|
|||
Weighted-average common shares outstanding, diluted
|
|
16,172,282
|
|
|
14,691,370
|
|
|
13,540,293
|
|
|||
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
24,108
|
|
|
$
|
24,301
|
|
|
$
|
16,403
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
||||||
Unrealized gain (loss) on securities available-for-sale arising during the year
|
|
3,038
|
|
|
(595
|
)
|
|
(778
|
)
|
|||
Reclassification adjustment for net gain included in net income
|
|
(786
|
)
|
|
—
|
|
|
—
|
|
|||
Income tax benefit (expense) related to items of other comprehensive income (loss)
|
|
(662
|
)
|
|
171
|
|
|
328
|
|
|||
Total other comprehensive income (loss), net of tax
|
|
1,590
|
|
|
(424
|
)
|
|
(450
|
)
|
|||
Total comprehensive income
|
|
$
|
25,698
|
|
|
$
|
23,877
|
|
|
$
|
15,953
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity
|
|||||||||||||||
|
|
Common Stock Outstanding Shares
|
|
Common stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
|||||||||
Balance at January 1, 2017
|
|
13,391,222
|
|
|
$
|
127,538
|
|
|
$
|
—
|
|
|
$
|
(531
|
)
|
|
$
|
127,007
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
|
—
|
|
|
—
|
|
|
16,403
|
|
|
—
|
|
|
16,403
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(450
|
)
|
|
(450
|
)
|
||||
Share-based compensation expense
|
|
—
|
|
|
699
|
|
|
—
|
|
|
—
|
|
|
699
|
|
||||
Stock options exercised
|
|
26,811
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
136
|
|
||||
Retirement of fractional shares
|
|
(134
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
Cash dividends declared on common stock ($0.12 per share)
|
|
—
|
|
|
—
|
|
|
(1,609
|
)
|
|
—
|
|
|
(1,609
|
)
|
||||
Reclassification of disproportionate tax effect
|
|
—
|
|
|
—
|
|
|
242
|
|
|
(242
|
)
|
|
—
|
|
||||
Balance at December 31, 2017
|
|
13,417,899
|
|
|
128,371
|
|
|
15,036
|
|
|
(1,223
|
)
|
|
142,184
|
|
||||
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
|
—
|
|
|
—
|
|
|
24,301
|
|
|
—
|
|
|
24,301
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(424
|
)
|
|
(424
|
)
|
||||
Stock issued under stock offering, net of expenses
|
|
2,508,234
|
|
|
45,037
|
|
|
—
|
|
|
—
|
|
|
45,037
|
|
||||
Share-based compensation expense
|
|
—
|
|
|
648
|
|
|
—
|
|
|
—
|
|
|
648
|
|
||||
Stock options exercised
|
|
51,621
|
|
|
310
|
|
|
—
|
|
|
—
|
|
|
310
|
|
||||
Cash dividends declared on common stock ($0.12 per share)
|
|
—
|
|
|
—
|
|
|
(1,760
|
)
|
|
—
|
|
|
(1,760
|
)
|
||||
Balance at December 31, 2018
|
|
15,977,754
|
|
|
174,366
|
|
|
37,577
|
|
|
(1,647
|
)
|
|
210,296
|
|
||||
Cumulative effect adjustment upon adoption of new lease accounting standard
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
(53
|
)
|
||||
Adjusted balance at December 31, 2018
|
|
15,977,754
|
|
|
174,366
|
|
|
37,524
|
|
|
(1,647
|
)
|
|
210,243
|
|
||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
|
—
|
|
|
—
|
|
|
24,108
|
|
|
—
|
|
|
24,108
|
|
||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,590
|
|
|
1,590
|
|
||||
Issuance of restricted stock
|
|
37,700
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repurchase of common stock
|
|
(396,715
|
)
|
|
(6,480
|
)
|
|
—
|
|
|
—
|
|
|
(6,480
|
)
|
||||
Share-based compensation expense
|
|
—
|
|
|
709
|
|
|
—
|
|
|
—
|
|
|
709
|
|
||||
Stock options exercised
|
|
88,277
|
|
|
626
|
|
|
—
|
|
|
—
|
|
|
626
|
|
||||
Cash dividends declared on common stock ($0.25 per share)
|
|
—
|
|
|
—
|
|
|
(3,962
|
)
|
|
—
|
|
|
(3,962
|
)
|
||||
Balance at December 31, 2019
|
|
15,707,016
|
|
|
$
|
169,221
|
|
|
$
|
57,670
|
|
|
$
|
(57
|
)
|
|
$
|
226,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
24,108
|
|
|
$
|
24,301
|
|
|
$
|
16,403
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation of premises and equipment
|
|
1,534
|
|
|
1,269
|
|
|
1,120
|
|
|||
Net amortization of premiums on securities
|
|
883
|
|
|
790
|
|
|
818
|
|
|||
Net accretion of discounts on loans
|
|
(4,022
|
)
|
|
(4,397
|
)
|
|
(3,474
|
)
|
|||
Net accretion of deferred loan fees
|
|
(452
|
)
|
|
(515
|
)
|
|
(559
|
)
|
|||
Amortization of servicing assets
|
|
2,382
|
|
|
2,765
|
|
|
2,233
|
|
|||
Provision for loan losses
|
|
4,237
|
|
|
1,231
|
|
|
1,827
|
|
|||
Deferred tax expense (benefit)
|
|
(2,573
|
)
|
|
641
|
|
|
1,733
|
|
|||
Share-based compensation
|
|
709
|
|
|
648
|
|
|
699
|
|
|||
Gain on sale of securities available-for-sale
|
|
(786
|
)
|
|
—
|
|
|
—
|
|
|||
Gain on sale of loans
|
|
(5,996
|
)
|
|
(5,560
|
)
|
|
(9,000
|
)
|
|||
Originations of loans held-for-sale
|
|
(105,153
|
)
|
|
(99,864
|
)
|
|
(143,119
|
)
|
|||
Proceeds from sales of and principal collected on loans held-for-sale
|
|
116,544
|
|
|
106,282
|
|
|
151,972
|
|
|||
Change in accrued interest receivable and other assets
|
|
801
|
|
|
(1,362
|
)
|
|
(243
|
)
|
|||
Change in accrued interest payable and other liabilities
|
|
(2,096
|
)
|
|
4,454
|
|
|
800
|
|
|||
Net cash provided by operating activities
|
|
30,120
|
|
|
30,683
|
|
|
21,210
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Purchase of securities available-for-sale
|
|
(11,961
|
)
|
|
(41,965
|
)
|
|
(66,866
|
)
|
|||
Proceeds from sale of securities available-for-sale
|
|
33,627
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from maturities, calls, and paydowns of securities available-for-sale
|
|
30,134
|
|
|
23,374
|
|
|
18,558
|
|
|||
Purchase of securities held-to-maturity
|
|
(2,150
|
)
|
|
(2,075
|
)
|
|
(6,106
|
)
|
|||
Proceeds from maturities, calls, and paydowns of securities held-to-maturity
|
|
3,600
|
|
|
1,289
|
|
|
2,481
|
|
|||
Proceeds from sale of loans held-for-sale previously classified as held-for-investment
|
|
826
|
|
|
8,254
|
|
|
—
|
|
|||
Net increase in loans held-for-investment
|
|
(113,139
|
)
|
|
(155,113
|
)
|
|
(161,680
|
)
|
|||
Purchase of loans held-for-investment
|
|
(1,539
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of Federal Home Loan Bank and other restricted stock
|
|
(912
|
)
|
|
(844
|
)
|
|
(903
|
)
|
|||
Proceeds from sale of other real estate owned
|
|
321
|
|
|
102
|
|
|
291
|
|
|||
Purchases of premises and equipment
|
|
(710
|
)
|
|
(1,140
|
)
|
|
(1,281
|
)
|
|||
Net cash used in investing activities
|
|
(61,903
|
)
|
|
(168,118
|
)
|
|
(215,506
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Net increase in deposits
|
|
35,554
|
|
|
192,463
|
|
|
159,478
|
|
|||
Proceeds from long-term Federal Home Loan Bank advances
|
|
—
|
|
|
—
|
|
|
40,000
|
|
|||
Repayment of long-term Federal Home Loan Bank advances
|
|
(10,000
|
)
|
|
(10,000
|
)
|
|
—
|
|
|||
Stock options exercised
|
|
626
|
|
|
310
|
|
|
134
|
|
|||
Stock issued under stock offering, net of expenses
|
|
—
|
|
|
45,037
|
|
|
—
|
|
|||
Repurchase of common stock
|
|
(6,480
|
)
|
|
—
|
|
|
—
|
|
|||
Cash dividends paid on common stock
|
|
(3,962
|
)
|
|
(1,760
|
)
|
|
(1,609
|
)
|
|||
Net cash provided by financing activities
|
|
15,738
|
|
|
226,050
|
|
|
198,003
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
(16,045
|
)
|
|
88,615
|
|
|
3,707
|
|
|||
Cash and cash equivalents at beginning of year
|
|
162,273
|
|
|
73,658
|
|
|
69,951
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
146,228
|
|
|
$
|
162,273
|
|
|
$
|
73,658
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
||||||
Interest paid
|
|
$
|
24,130
|
|
|
$
|
13,979
|
|
|
$
|
9,465
|
|
Income taxes paid
|
|
13,379
|
|
|
7,568
|
|
|
12,056
|
|
|||
Supplemental disclosures of non-cash investment activities:
|
|
|
|
|
|
|
||||||
Loans transferred to loans held-for-sale
|
|
$
|
824
|
|
|
$
|
8,062
|
|
|
$
|
—
|
|
Loans transferred to other real estate owned
|
|
50
|
|
|
—
|
|
|
—
|
|
|||
Right-of-use assets obtained in exchange for lease obligations
|
|
1,616
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
•
|
Pass - Loans classified as pass include non-homogeneous loans not meeting the risk ratings defined below and smaller, homogeneous loans not assessed on an individual basis.
|
•
|
Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of repayment prospects for the loan or of the institution’s credit position at some future date.
|
•
|
Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
|
•
|
Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
|
•
|
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.
|
•
|
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
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
38,738
|
|
|
$
|
—
|
|
|
$
|
38,738
|
|
Collateralized mortgage obligations
|
|
—
|
|
|
43,894
|
|
|
—
|
|
|
43,894
|
|
||||
SBA loan pool securities
|
|
—
|
|
|
14,152
|
|
|
—
|
|
|
14,152
|
|
||||
Municipal bonds
|
|
—
|
|
|
782
|
|
|
—
|
|
|
782
|
|
||||
Total securities available-for-sale
|
|
—
|
|
|
97,566
|
|
|
—
|
|
|
97,566
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
—
|
|
|
$
|
97,566
|
|
|
$
|
—
|
|
|
$
|
97,566
|
|
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:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
67,921
|
|
|
$
|
—
|
|
|
$
|
67,921
|
|
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
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
SBA property
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
116
|
|
Commercial lines of credit
|
|
—
|
|
|
—
|
|
|
1,562
|
|
|
1,562
|
|
||||
Total impaired loans
|
|
—
|
|
|
—
|
|
|
1,678
|
|
|
1,678
|
|
||||
Total assets measured at fair value on a non-recurring basis
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,678
|
|
|
$
|
1,678
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range (Weighted-Average)
|
||
December 31, 2019
|
|
|
|
|
|
|
|
|
||
Impaired loans:
|
|
|
|
|
|
|
|
|
||
SBA property
|
|
$
|
116
|
|
|
Fair value of collateral
|
|
NM
|
|
NM
|
Commercial lines of credit
|
|
$
|
1,562
|
|
|
Sales comparison approach
|
|
Adjustment for differences between the comparable estate sales
|
|
-4% to 26% (0.86%)
|
|
|
|
|
Income approach
|
|
Adjustment for differences in net operating income expectations
|
|
-4% to -11% (-6.20%)
|
||
|
|
|
|
|
|
Capitalization rate
|
|
5%
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
||
Impaired loans:
|
|
|
|
|
|
|
|
|
||
SBA property
|
|
$
|
51
|
|
|
Fair value of collateral
|
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Collateral dependent impaired loans:
|
|
|
|
|
|
|
||||||
Commercial property
|
|
$
|
—
|
|
|
$
|
(53
|
)
|
|
$
|
(49
|
)
|
SBA property
|
|
(31
|
)
|
|
(238
|
)
|
|
(440
|
)
|
|||
Commercial lines of credit
|
|
(2,475
|
)
|
|
—
|
|
|
—
|
|
|||
Other real estate owned
|
|
(18
|
)
|
|
3
|
|
|
(20
|
)
|
|||
Net losses recognized
|
|
$
|
(2,524
|
)
|
|
$
|
(288
|
)
|
|
$
|
(509
|
)
|
|
|
|
|
|
|
|
|
|
Carrying Value
|
|
Fair Value
|
|
Fair Value Measurements
|
||||||||||||||
($ in thousands)
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in other financial institutions
|
|
$
|
128,420
|
|
|
$
|
128,420
|
|
|
$
|
128,420
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
97,566
|
|
|
97,566
|
|
|
—
|
|
|
97,566
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
20,154
|
|
|
20,480
|
|
|
—
|
|
|
20,480
|
|
|
—
|
|
|||||
Loans held-for-sale
|
|
1,975
|
|
|
2,102
|
|
|
—
|
|
|
2,102
|
|
|
—
|
|
|||||
Net loans held-for-investment
|
|
1,436,451
|
|
|
1,449,383
|
|
|
—
|
|
|
—
|
|
|
1,449,383
|
|
|||||
FHLB and other restricted stock
|
|
8,345
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
5,136
|
|
|
5,136
|
|
|
78
|
|
|
375
|
|
|
4,683
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
1,479,307
|
|
|
$
|
1,468,540
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,468,540
|
|
FHLB advances
|
|
20,000
|
|
|
20,092
|
|
|
—
|
|
|
20,092
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
6,004
|
|
|
6,004
|
|
|
—
|
|
|
1
|
|
|
6,003
|
|
|||||
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
|
|
|
—
|
|
|||||
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
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
|
$
|
38,793
|
|
|
$
|
96
|
|
|
$
|
(151
|
)
|
|
$
|
38,738
|
|
Collateralized mortgage obligations
|
|
44,115
|
|
|
36
|
|
|
(257
|
)
|
|
43,894
|
|
||||
SBA loan pool securities
|
|
14,179
|
|
|
34
|
|
|
(61
|
)
|
|
14,152
|
|
||||
Municipal bonds
|
|
764
|
|
|
18
|
|
|
—
|
|
|
782
|
|
||||
Total securities available-for-sale
|
|
$
|
97,851
|
|
|
$
|
184
|
|
|
$
|
(469
|
)
|
|
$
|
97,566
|
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
$
|
15,215
|
|
|
$
|
70
|
|
|
$
|
(81
|
)
|
|
$
|
15,204
|
|
Municipal bonds
|
|
4,939
|
|
|
337
|
|
|
—
|
|
|
5,276
|
|
||||
Total securities held-to-maturity
|
|
$
|
20,154
|
|
|
$
|
407
|
|
|
$
|
(81
|
)
|
|
$
|
20,480
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
|
$
|
68,975
|
|
|
$
|
177
|
|
|
$
|
(1,231
|
)
|
|
$
|
67,921
|
|
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 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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
102
|
|
|
$
|
103
|
|
One to five years
|
|
—
|
|
|
—
|
|
|
2,226
|
|
|
2,302
|
|
||||
Five to ten years
|
|
764
|
|
|
782
|
|
|
285
|
|
|
298
|
|
||||
Greater than ten years
|
|
—
|
|
|
—
|
|
|
2,326
|
|
|
2,573
|
|
||||
Mortgage-backed securities, collateralized mortgage obligations and SBA loan pool securities
|
|
97,087
|
|
|
96,784
|
|
|
15,215
|
|
|
15,204
|
|
||||
Total
|
|
$
|
97,851
|
|
|
$
|
97,566
|
|
|
$
|
20,154
|
|
|
$
|
20,480
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Gross realized gains on sales and calls of securities available-for-sale
|
|
$
|
786
|
|
|
$
|
—
|
|
|
$
|
—
|
|
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
|
|
$
|
786
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Proceeds from sales and calls of securities available-for-sale
|
|
$
|
33,627
|
|
|
$
|
1,075
|
|
|
$
|
—
|
|
Tax expense on sales and calls of securities available-for-sale
|
|
$
|
234
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
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
|
|||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
|
$
|
5,401
|
|
|
$
|
(28
|
)
|
|
5
|
|
|
$
|
15,772
|
|
|
$
|
(123
|
)
|
|
23
|
|
|
$
|
21,173
|
|
|
$
|
(151
|
)
|
|
28
|
|
Collateralized mortgage obligations
|
|
15,392
|
|
|
(52
|
)
|
|
13
|
|
|
19,834
|
|
|
(205
|
)
|
|
23
|
|
|
35,226
|
|
|
(257
|
)
|
|
36
|
|
||||||
SBA loan pool securities
|
|
4,787
|
|
|
(38
|
)
|
|
5
|
|
|
2,308
|
|
|
(23
|
)
|
|
4
|
|
|
7,095
|
|
|
(61
|
)
|
|
9
|
|
||||||
Total securities available-for-sale
|
|
$
|
25,580
|
|
|
$
|
(118
|
)
|
|
23
|
|
|
$
|
37,914
|
|
|
$
|
(351
|
)
|
|
50
|
|
|
$
|
63,494
|
|
|
$
|
(469
|
)
|
|
73
|
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
6,842
|
|
|
$
|
(81
|
)
|
|
7
|
|
|
$
|
6,842
|
|
|
$
|
(81
|
)
|
|
7
|
|
Total securities held-to-maturity
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
6,842
|
|
|
$
|
(81
|
)
|
|
7
|
|
|
$
|
6,842
|
|
|
$
|
(81
|
)
|
|
7
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
|
$
|
1,868
|
|
|
$
|
(6
|
)
|
|
2
|
|
|
$
|
41,845
|
|
|
$
|
(1,225
|
)
|
|
48
|
|
|
$
|
43,713
|
|
|
$
|
(1,231
|
)
|
|
50
|
|
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 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||
Real estate loans:
|
|
|
|
|
||||
Commercial property
|
|
$
|
803,014
|
|
|
$
|
709,409
|
|
Residential property
|
|
235,046
|
|
|
233,816
|
|
||
SBA property
|
|
129,837
|
|
|
120,939
|
|
||
Construction
|
|
19,164
|
|
|
27,323
|
|
||
Total real estate loans
|
|
1,187,061
|
|
|
1,091,487
|
|
||
Commercial and industrial loans:
|
|
|
|
|
||||
Commercial term
|
|
103,380
|
|
|
102,133
|
|
||
Commercial lines of credit
|
|
111,768
|
|
|
91,994
|
|
||
SBA commercial term
|
|
25,332
|
|
|
27,147
|
|
||
Total commercial and industrial loans
|
|
240,480
|
|
|
221,274
|
|
||
Other consumer loans
|
|
23,290
|
|
|
25,921
|
|
||
Loans held-for-investment
|
|
1,450,831
|
|
|
1,338,682
|
|
||
Allowance for loan losses
|
|
(14,380
|
)
|
|
(13,167
|
)
|
||
Net loans held-for-investment
|
|
$
|
1,436,451
|
|
|
$
|
1,325,515
|
|
|
|
|
|
|
($ in thousands)
|
|
Real Estate
|
|
Commercial and Industrial
|
|
Consumer
|
|
Total
|
||||||||
Balance at January 1, 2017
|
|
$
|
7,497
|
|
|
$
|
3,657
|
|
|
$
|
166
|
|
|
$
|
11,320
|
|
Charge-offs
|
|
(168
|
)
|
|
(1,320
|
)
|
|
(88
|
)
|
|
(1,576
|
)
|
||||
Recoveries on loans previously charged off
|
|
1
|
|
|
580
|
|
|
72
|
|
|
653
|
|
||||
Provision (reversal) for loan losses
|
|
1,177
|
|
|
631
|
|
|
19
|
|
|
1,827
|
|
||||
Balance at December 31, 2017
|
|
8,507
|
|
|
3,548
|
|
|
169
|
|
|
12,224
|
|
||||
Charge-offs
|
|
(381
|
)
|
|
(272
|
)
|
|
(356
|
)
|
|
(1,009
|
)
|
||||
Recoveries on loans previously charged off
|
|
213
|
|
|
356
|
|
|
152
|
|
|
721
|
|
||||
Provision for loan losses
|
|
765
|
|
|
245
|
|
|
221
|
|
|
1,231
|
|
||||
Balance at December 31, 2018
|
|
9,104
|
|
|
3,877
|
|
|
186
|
|
|
13,167
|
|
||||
Charge-offs
|
|
(31
|
)
|
|
(3,350
|
)
|
|
(198
|
)
|
|
(3,579
|
)
|
||||
Recoveries on loans previously charged off
|
|
6
|
|
|
378
|
|
|
171
|
|
|
555
|
|
||||
Provision for loan losses
|
|
775
|
|
|
3,449
|
|
|
13
|
|
|
4,237
|
|
||||
Balance at December 31, 2019
|
|
$
|
9,854
|
|
|
$
|
4,354
|
|
|
$
|
172
|
|
|
$
|
14,380
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Real Estate
|
|
Commercial and Industrial
|
|
Consumer
|
|
Total
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
4
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
19
|
|
Collectively evaluated for impairment
|
|
9,850
|
|
|
4,339
|
|
|
172
|
|
|
14,361
|
|
||||
Total
|
|
$
|
9,854
|
|
|
$
|
4,354
|
|
|
$
|
172
|
|
|
$
|
14,380
|
|
Loans receivable:
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
2,158
|
|
|
$
|
2,401
|
|
|
$
|
—
|
|
|
$
|
4,559
|
|
Collectively evaluated for impairment
|
|
1,184,903
|
|
|
238,079
|
|
|
23,290
|
|
|
1,446,272
|
|
||||
Total
|
|
$
|
1,187,061
|
|
|
$
|
240,480
|
|
|
$
|
23,290
|
|
|
$
|
1,450,831
|
|
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
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial property
|
|
$
|
802,373
|
|
|
$
|
—
|
|
|
$
|
641
|
|
|
$
|
—
|
|
|
$
|
803,014
|
|
Residential property
|
|
235,046
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
235,046
|
|
|||||
SBA property
|
|
124,135
|
|
|
72
|
|
|
5,630
|
|
|
—
|
|
|
129,837
|
|
|||||
Construction
|
|
17,453
|
|
|
1,711
|
|
|
—
|
|
|
—
|
|
|
19,164
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
103,380
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103,380
|
|
|||||
Commercial lines of credit
|
|
109,880
|
|
|
—
|
|
|
1,888
|
|
|
—
|
|
|
111,768
|
|
|||||
SBA commercial term
|
|
24,677
|
|
|
—
|
|
|
655
|
|
|
—
|
|
|
25,332
|
|
|||||
Other consumer loans
|
|
23,242
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
23,290
|
|
|||||
Total
|
|
$
|
1,440,186
|
|
|
$
|
1,783
|
|
|
$
|
8,862
|
|
|
$
|
—
|
|
|
$
|
1,450,831
|
|
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
|
|
91,395
|
|
|
599
|
|
|
—
|
|
|
—
|
|
|
91,994
|
|
|||||
SBA commercial term
|
|
26,616
|
|
|
—
|
|
|
531
|
|
|
—
|
|
|
27,147
|
|
|||||
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
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential property
|
|
$
|
—
|
|
|
$
|
697
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
697
|
|
SBA property
|
|
794
|
|
|
—
|
|
|
—
|
|
|
442
|
|
|
1,236
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial lines of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,888
|
|
|
1,888
|
|
|||||
SBA commercial term
|
|
—
|
|
|
189
|
|
|
287
|
|
|
159
|
|
|
635
|
|
|||||
Other consumer loans
|
|
99
|
|
|
39
|
|
|
—
|
|
|
48
|
|
|
186
|
|
|||||
Total
|
|
$
|
893
|
|
|
$
|
925
|
|
|
$
|
287
|
|
|
$
|
2,537
|
|
|
$
|
4,642
|
|
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
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial property
|
|
$
|
339
|
|
|
$
|
338
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
SBA property
|
|
1,699
|
|
|
1,828
|
|
|
120
|
|
|
154
|
|
|
4
|
|
|||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial term
|
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial lines of credit
|
|
1,888
|
|
|
1,888
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SBA commercial term
|
|
457
|
|
|
495
|
|
|
28
|
|
|
28
|
|
|
15
|
|
|||||
Total
|
|
$
|
4,411
|
|
|
$
|
4,577
|
|
|
$
|
148
|
|
|
$
|
182
|
|
|
$
|
19
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
($ in thousands)
|
|
Average Recorded Investment
|
|
Interest Income
|
|
Average Recorded Investment
|
|
Interest Income
|
|
Average Recorded Investment
|
|
Interest Income
|
||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial property
|
|
$
|
170
|
|
|
$
|
12
|
|
|
$
|
199
|
|
|
$
|
—
|
|
|
$
|
396
|
|
|
$
|
5
|
|
Residential property
|
|
38
|
|
|
—
|
|
|
281
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
SBA property
|
|
1,685
|
|
|
41
|
|
|
1,245
|
|
|
22
|
|
|
1,982
|
|
|
35
|
|
||||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial term
|
|
47
|
|
|
3
|
|
|
112
|
|
|
8
|
|
|
512
|
|
|
30
|
|
||||||
Commercial lines of credit
|
|
921
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
431
|
|
|
39
|
|
||||||
SBA commercial term
|
|
224
|
|
|
9
|
|
|
382
|
|
|
8
|
|
|
595
|
|
|
25
|
|
||||||
Total
|
|
$
|
3,085
|
|
|
$
|
65
|
|
|
$
|
2,224
|
|
|
$
|
38
|
|
|
$
|
3,916
|
|
|
$
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest income that would have been recognized had impaired loans performed in accordance with their original terms
|
|
$
|
213
|
|
|
$
|
191
|
|
|
$
|
294
|
|
Less: interest income recognized on impaired loans on a cash basis
|
|
(65
|
)
|
|
(38
|
)
|
|
(128
|
)
|
|||
Interest income foregone on impaired loans
|
|
$
|
148
|
|
|
$
|
153
|
|
|
$
|
166
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||||
($ in thousands)
|
|
Accruing
|
|
Nonaccrual
|
|
Total
|
|
Accruing
|
|
Nonaccrual
|
|
Total
|
||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial property
|
|
$
|
339
|
|
|
$
|
—
|
|
|
$
|
339
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
SBA property
|
|
294
|
|
|
121
|
|
|
415
|
|
|
315
|
|
|
—
|
|
|
315
|
|
||||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial term
|
|
28
|
|
|
—
|
|
|
28
|
|
|
68
|
|
|
—
|
|
|
68
|
|
||||||
SBA commercial term
|
|
39
|
|
|
—
|
|
|
39
|
|
|
49
|
|
|
131
|
|
|
180
|
|
||||||
Total
|
|
$
|
700
|
|
|
$
|
121
|
|
|
$
|
821
|
|
|
$
|
432
|
|
|
$
|
131
|
|
|
$
|
563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
($ in thousands)
|
|
Number of Loans
|
|
Pre-Modification Recorded Investment
|
|
Post-Modification Recorded Investment
|
|
Number of Loans
|
|
Pre-Modification Recorded Investment
|
|
Post-Modification Recorded Investment
|
|
Number of Loans
|
|
Pre-Modification Recorded Investment
|
|
Post-Modification Recorded Investment
|
|||||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial property
|
|
1
|
|
|
$
|
341
|
|
|
$
|
341
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
312
|
|
|
$
|
301
|
|
SBA property
|
|
2
|
|
|
254
|
|
|
254
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
SBA commercial term
|
|
2
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
274
|
|
|
241
|
|
||||||
Total
|
|
5
|
|
|
$
|
610
|
|
|
$
|
610
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
4
|
|
|
$
|
586
|
|
|
$
|
542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal (1)
|
|
Principal and Interest (2)
|
|
Total
|
|||||||||||||||
($ in thousands)
|
|
Number of Loans
|
|
Pre-Modification Recorded Investment
|
|
Number of Loans
|
|
Pre-Modification Recorded Investment
|
|
Number of Loans
|
|
Pre-Modification Recorded Investment
|
|||||||||
Year ended December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial property
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
341
|
|
|
1
|
|
|
$
|
341
|
|
SBA property
|
|
2
|
|
|
254
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
254
|
|
|||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
SBA commercial term
|
|
2
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
15
|
|
|||
Total
|
|
4
|
|
|
$
|
269
|
|
|
1
|
|
|
$
|
341
|
|
|
5
|
|
|
$
|
610
|
|
Year ended December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial property
|
|
1
|
|
|
$
|
312
|
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
312
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
SBA commercial term
|
|
3
|
|
|
274
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
274
|
|
|||
Total
|
|
4
|
|
|
$
|
586
|
|
|
—
|
|
|
$
|
—
|
|
|
4
|
|
|
$
|
586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Real estate loans:
|
|
|
|
|
|
|
||||||
Commercial property
|
|
$
|
—
|
|
|
$
|
2,112
|
|
|
$
|
—
|
|
Residential property
|
|
824
|
|
|
5,950
|
|
|
—
|
|
|||
Total
|
|
$
|
824
|
|
|
$
|
8,062
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Real estate loans:
|
|
|
|
|
|
|
||||||
Residential property
|
|
$
|
1,539
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
$
|
1,539
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||
Real estate loans:
|
|
|
|
|
||||
Residential property
|
|
$
|
760
|
|
|
$
|
—
|
|
SBA property
|
|
150
|
|
|
5,481
|
|
||
Commercial and industrial loans:
|
|
|
|
|
||||
SBA commercial term
|
|
1,065
|
|
|
300
|
|
||
Total
|
|
$
|
1,975
|
|
|
$
|
5,781
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||
Leasehold improvements
|
|
$
|
6,791
|
|
|
$
|
6,787
|
|
Furniture, fixtures and equipment
|
|
3,305
|
|
|
2,992
|
|
||
Computer equipment
|
|
2,207
|
|
|
2,033
|
|
||
Computer software
|
|
1,360
|
|
|
1,262
|
|
||
Total premises and equipment
|
|
13,663
|
|
|
13,074
|
|
||
Less: accumulated depreciation
|
|
(9,903
|
)
|
|
(8,486
|
)
|
||
Premises and equipment, net
|
|
$
|
3,760
|
|
|
$
|
4,588
|
|
|
|
|
|
|
($ in thousands)
|
|
Year Ended December 31, 2019
|
||
Operating lease cost (1)
|
|
$
|
2,632
|
|
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
|
|
1,616
|
|
|
|
|
|
(1)
|
Included in Occupancy and Equipment on the Consolidated Statements of Income. Operating lease cost for the years ended December 31, 2018 and 2017 was under Topic 840.
|
($ in thousands)
|
|
December 31, 2019
|
||
Operating leases:
|
|
|
||
Operating lease assets
|
|
$
|
8,991
|
|
Operating lease liabilities
|
|
9,990
|
|
|
Weighted-average remaining lease term
|
|
5.0 years
|
|
|
Weighted-average discount rate
|
|
2.81
|
%
|
|
|
|
|
($ in thousands)
|
|
December 31,
|
||
Maturities:
|
|
|
||
2020
|
|
$
|
2,686
|
|
2021
|
|
2,283
|
|
|
2022
|
|
2,171
|
|
|
2023
|
|
1,828
|
|
|
2024
|
|
547
|
|
|
After 2024
|
|
1,352
|
|
|
Total lease payment
|
|
10,867
|
|
|
Imputed interest
|
|
(877
|
)
|
|
Present value of operating lease liabilities
|
|
$
|
9,990
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||||
($ in thousands)
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
||||||||||||
Carrying amount
|
|
$
|
171
|
|
|
$
|
5,805
|
|
|
$
|
822
|
|
|
$
|
244
|
|
|
$
|
6,349
|
|
|
$
|
1,073
|
|
Fair value
|
|
$
|
200
|
|
|
$
|
6,693
|
|
|
$
|
976
|
|
|
$
|
298
|
|
|
$
|
6,937
|
|
|
$
|
1,206
|
|
Discount rates
|
|
11.25
|
%
|
|
13.25
|
%
|
|
12.75
|
%
|
|
11.25
|
%
|
|
13.25
|
%
|
|
12.75
|
%
|
||||||
Prepayment speeds
|
|
26.60
|
%
|
|
16.28
|
%
|
|
16.03
|
%
|
|
25.00
|
%
|
|
14.12
|
%
|
|
13.55
|
%
|
||||||
Weighted average remaining life
|
|
24.2 years
|
|
|
21.3 years
|
|
|
7.0 years
|
|
|
25.2 years
|
|
|
21.1 years
|
|
|
7.4 years
|
|
||||||
Underlying loans being serviced
|
|
$
|
32,428
|
|
|
$
|
384,007
|
|
|
$
|
82,181
|
|
|
$
|
45,728
|
|
|
$
|
367,856
|
|
|
$
|
93,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Residential Property
|
|
SBA Property
|
|
SBA Commercial Term
|
|
Total
|
||||||||
Balance at January 1, 2017
|
|
$
|
408
|
|
|
$
|
6,692
|
|
|
$
|
1,202
|
|
|
$
|
8,302
|
|
Additions
|
|
—
|
|
|
2,353
|
|
|
551
|
|
|
2,904
|
|
||||
Amortization
|
|
(100
|
)
|
|
(1,676
|
)
|
|
(457
|
)
|
|
(2,233
|
)
|
||||
Balance at December 31, 2017
|
|
308
|
|
|
7,369
|
|
|
1,296
|
|
|
8,973
|
|
||||
Additions
|
|
22
|
|
|
1,166
|
|
|
270
|
|
|
1,458
|
|
||||
Amortization
|
|
(86
|
)
|
|
(2,186
|
)
|
|
(493
|
)
|
|
(2,765
|
)
|
||||
Balance at December 31, 2018
|
|
244
|
|
|
6,349
|
|
|
1,073
|
|
|
7,666
|
|
||||
Additions
|
|
—
|
|
|
1,329
|
|
|
185
|
|
|
1,514
|
|
||||
Amortization
|
|
(73
|
)
|
|
(1,873
|
)
|
|
(436
|
)
|
|
(2,382
|
)
|
||||
Balance at December 31, 2019
|
|
$
|
171
|
|
|
$
|
5,805
|
|
|
$
|
822
|
|
|
$
|
6,798
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
|
—
|
|
|
99
|
|
|
506
|
|
|||
Additions
|
|
395
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
|
(329
|
)
|
|
(210
|
)
|
|
(296
|
)
|
|||
Net change in valuation allowance
|
|
(66
|
)
|
|
111
|
|
|
(111
|
)
|
|||
Balance at end of year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
99
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net (gain) loss on sales
|
|
1
|
|
|
(3
|
)
|
|
5
|
|
|||
Operating expenses, net of rental income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
5
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
||||||||||||||
Time deposits of $250,000 or less
|
|
$
|
450,104
|
|
|
$
|
12,179
|
|
|
$
|
3,523
|
|
|
$
|
1,014
|
|
|
$
|
543
|
|
|
$
|
—
|
|
|
$
|
467,363
|
|
Time deposits of more than $250,000
|
|
283,899
|
|
|
5,515
|
|
|
312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
289,726
|
|
|||||||
Total time deposits
|
|
$
|
734,003
|
|
|
$
|
17,694
|
|
|
$
|
3,835
|
|
|
$
|
1,014
|
|
|
$
|
543
|
|
|
$
|
—
|
|
|
$
|
757,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||
Fixed Rate
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,000
|
|
Variable Rate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or For the Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Weighted-average interest rate at end of year
|
|
1.92
|
%
|
|
1.81
|
%
|
|
1.71
|
%
|
|||
Average interest rate during the year
|
|
1.86
|
%
|
|
1.75
|
%
|
|
1.71
|
%
|
|||
Average balance
|
|
$
|
25,370
|
|
|
$
|
34,904
|
|
|
$
|
20,384
|
|
Maximum amount outstanding at any month-end
|
|
$
|
35,000
|
|
|
$
|
40,000
|
|
|
$
|
40,000
|
|
Balance at end of year
|
|
$
|
20,000
|
|
|
$
|
30,000
|
|
|
$
|
40,000
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Unrealized loss on securities available-for-sale:
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
$
|
(1,647
|
)
|
|
$
|
(1,223
|
)
|
|
$
|
(531
|
)
|
Other comprehensive loss
|
|
|
|
|
|
|
||||||
Unrealized gain (loss) arising during the year
|
|
3,038
|
|
|
(595
|
)
|
|
(778
|
)
|
|||
Reclassification adjustment from other comprehensive income
|
|
(786
|
)
|
|
—
|
|
|
—
|
|
|||
Tax effect of current period changes
|
|
(662
|
)
|
|
171
|
|
|
328
|
|
|||
Total other comprehensive income (loss)
|
|
1,590
|
|
|
(424
|
)
|
|
(450
|
)
|
|||
Reclassification of disproportionate tax effect to retained earnings
|
|
—
|
|
|
—
|
|
|
(242
|
)
|
|||
Balance at end of year
|
|
$
|
(57
|
)
|
|
$
|
(1,647
|
)
|
|
$
|
(1,223
|
)
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Share-based compensation expense related to:
|
|
|
|
|
|
|
||||||
Stock options
|
|
$
|
650
|
|
|
$
|
648
|
|
|
$
|
699
|
|
Restricted stock awards
|
|
59
|
|
|
—
|
|
|
—
|
|
|||
Total share-based compensation expense
|
|
$
|
709
|
|
|
$
|
648
|
|
|
$
|
699
|
|
Related tax benefits
|
|
$
|
44
|
|
|
$
|
50
|
|
|
$
|
88
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
Unrecognized Expense
|
|
Weighted-Average Remaining Expected Recognition Period
|
||
Unrecognized share-based compensation expense related to:
|
|
|
|
|
||
Stock options
|
|
$
|
986
|
|
|
2.1 years
|
Restricted stock awards
|
|
566
|
|
|
4.0 years
|
|
Total unrecognized share-based compensation expense
|
|
$
|
1,552
|
|
|
2.8 years
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|||||||
|
|
2019
|
|
2018
|
|
2017
|
|||
Risk-free interest rate
|
|
2.06
|
%
|
|
2.58
|
%
|
|
2.08
|
%
|
Expected term
|
|
5.00 years
|
|
|
6.18 years
|
|
|
6.50 years
|
|
Expected stock price volatility
|
|
36.10
|
%
|
|
37.10
|
%
|
|
42.72
|
%
|
Dividend yield
|
|
1.33
|
%
|
|
0.78
|
%
|
|
0.89
|
%
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Intrinsic value of options exercised
|
|
$
|
851
|
|
|
$
|
601
|
|
|
$
|
235
|
|
Cash received from options exercised
|
|
$
|
627
|
|
|
$
|
310
|
|
|
$
|
134
|
|
Tax benefit from options exercised
|
|
$
|
31
|
|
|
$
|
21
|
|
|
$
|
6
|
|
Weighted-average estimated fair value per share of options granted
|
|
$
|
5.76
|
|
|
$
|
5.71
|
|
|
$
|
5.08
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 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 year
|
|
898,291
|
|
|
$
|
9.81
|
|
|
6.55 years
|
|
$
|
5,243
|
|
Granted
|
|
25,000
|
|
|
$
|
16.94
|
|
|
10.00 years
|
|
|
||
Exercised
|
|
(88,277
|
)
|
|
$
|
7.09
|
|
|
4.51 years
|
|
|
||
Forfeited
|
|
(5,638
|
)
|
|
$
|
10.18
|
|
|
5.69 years
|
|
|
||
Balance at end of year
|
|
829,376
|
|
|
$
|
10.32
|
|
|
5.80 years
|
|
$
|
5,776
|
|
Exercisable at end of year
|
|
583,059
|
|
|
$
|
9.05
|
|
|
5.17 years
|
|
$
|
4,799
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019
|
|||||
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|||
Outstanding at beginning of year
|
|
347,274
|
|
|
$
|
12.17
|
|
Granted
|
|
25,000
|
|
|
$
|
16.94
|
|
Vested
|
|
(120,319
|
)
|
|
$
|
10.91
|
|
Forfeited
|
|
(5,638
|
)
|
|
$
|
10.18
|
|
Balance at end of year
|
|
246,317
|
|
|
$
|
13.31
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019
|
|||||
|
|
Number of Shares
|
|
Weighted-Average Grant Date Fair Value Per Share
|
|||
Outstanding at beginning of period
|
|
—
|
|
|
$
|
—
|
|
Granted
|
|
37,700
|
|
|
$
|
16.61
|
|
Vested
|
|
(300
|
)
|
|
$
|
17.09
|
|
Outstanding at end of period
|
|
37,400
|
|
|
$
|
16.60
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
8,317
|
|
|
$
|
6,322
|
|
|
$
|
9,924
|
|
State
|
|
4,499
|
|
|
3,481
|
|
|
3,282
|
|
|||
Total current income tax expense
|
|
12,816
|
|
|
9,803
|
|
|
13,206
|
|
|||
Deferred:
|
|
|
|
|
|
|
||||||
Federal
|
|
(1,747
|
)
|
|
369
|
|
|
66
|
|
|||
Adjustment of deferred tax assets for enacted changes in tax rate
|
|
—
|
|
|
25
|
|
|
1,622
|
|
|||
State
|
|
(826
|
)
|
|
247
|
|
|
45
|
|
|||
Total deferred income tax expense (benefit)
|
|
(2,573
|
)
|
|
641
|
|
|
1,733
|
|
|||
Total
|
|
$
|
10,243
|
|
|
$
|
10,444
|
|
|
$
|
14,939
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|||||||
|
|
2019
|
|
2018
|
|
2017
|
|||
Statutory federal tax rate
|
|
21.00
|
%
|
|
21.00
|
%
|
|
35.00
|
%
|
State franchise tax, net of federal tax benefit
|
|
8.45
|
%
|
|
8.48
|
%
|
|
6.90
|
%
|
Share-based compensation
|
|
0.10
|
%
|
|
0.24
|
%
|
|
0.49
|
%
|
Remeasurement from the Tax Cuts and Jobs Act
|
|
—
|
%
|
|
0.07
|
%
|
|
5.17
|
%
|
Other items, net
|
|
0.27
|
%
|
|
0.27
|
%
|
|
0.10
|
%
|
Effective income tax rate
|
|
29.82
|
%
|
|
30.06
|
%
|
|
47.66
|
%
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Allowance for loan losses
|
|
$
|
4,219
|
|
|
$
|
3,866
|
|
Share-based compensation
|
|
299
|
|
|
264
|
|
||
Unrealized loss on investment securities
|
|
84
|
|
|
744
|
|
||
Loans held-for-sale market adjustment
|
|
99
|
|
|
—
|
|
||
Operating lease liabilities
|
|
2,931
|
|
|
—
|
|
||
Deferred rent payable
|
|
—
|
|
|
181
|
|
||
State tax benefit
|
|
947
|
|
|
739
|
|
||
Other
|
|
312
|
|
|
348
|
|
||
Total deferred tax assets
|
|
8,891
|
|
|
6,142
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
Depreciation on premises and equipment
|
|
308
|
|
|
453
|
|
||
Loans held-for-sale market adjustment
|
|
—
|
|
|
1,653
|
|
||
Deferred loan origination costs
|
|
597
|
|
|
582
|
|
||
Operating lease assets
|
|
2,638
|
|
|
—
|
|
||
Other
|
|
60
|
|
|
77
|
|
||
Total deferred tax liabilities
|
|
3,603
|
|
|
2,765
|
|
||
Deferred tax assets, net
|
|
$
|
5,288
|
|
|
$
|
3,377
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands, except per share)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Basic earnings per share:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
24,108
|
|
|
$
|
24,301
|
|
|
$
|
16,403
|
|
Less: income allocated to unvested restricted stock
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|||
Net income allocated to common stock
|
|
$
|
24,086
|
|
|
$
|
24,301
|
|
|
$
|
16,403
|
|
Weighted-average total common shares outstanding
|
|
15,887,566
|
|
|
14,397,075
|
|
|
13,408,030
|
|
|||
Less: weighted-average unvested restricted stock
|
|
(14,183
|
)
|
|
—
|
|
|
—
|
|
|||
Weighted-average common shares outstanding, basic
|
|
15,873,383
|
|
|
14,397,075
|
|
|
13,408,030
|
|
|||
Basic earnings per share
|
|
$
|
1.52
|
|
|
$
|
1.69
|
|
|
$
|
1.22
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
||||||
Net income allocated to common stock
|
|
$
|
24,086
|
|
|
$
|
24,301
|
|
|
$
|
16,403
|
|
Weighted-average commons shares outstanding
|
|
15,873,383
|
|
|
14,397,075
|
|
|
13,408,030
|
|
|||
Diluted effect of stock options
|
|
298,899
|
|
|
294,295
|
|
|
132,263
|
|
|||
Diluted weighted-average common shares outstanding
|
|
16,172,282
|
|
|
14,691,370
|
|
|
13,540,293
|
|
|||
Diluted earnings per share
|
|
$
|
1.49
|
|
|
$
|
1.65
|
|
|
$
|
1.21
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||
Commitments to extend credit
|
|
$
|
171,608
|
|
|
$
|
127,443
|
|
Standby letters of credit
|
|
3,300
|
|
|
2,998
|
|
||
Commercial letters of credit
|
|
292
|
|
|
477
|
|
||
Total
|
|
$
|
175,200
|
|
|
$
|
130,918
|
|
|
|
|
|
|
|
|
Actual
|
|
Minimum Capital Requirement
|
|
To Be Well Capitalized Under Prompt Corrective Provisions
|
|||||||||||||||
($ in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PCB Bancorp
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
$
|
226,069
|
|
|
15.87
|
%
|
|
$
|
64,087
|
|
|
4.5
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Total capital (to risk-weighted assets)
|
|
240,750
|
|
|
16.90
|
%
|
|
113,933
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital (to risk-weighted assets)
|
|
226,069
|
|
|
15.87
|
%
|
|
85,450
|
|
|
6.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital (to average assets)
|
|
226,069
|
|
|
13.23
|
%
|
|
68,355
|
|
|
4.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Pacific City Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common tier 1 capital (to risk-weighted assets)
|
|
$
|
223,241
|
|
|
15.68
|
%
|
|
$
|
64,084
|
|
|
4.5
|
%
|
|
$
|
92,566
|
|
|
6.5
|
%
|
Total capital (to risk-weighted assets)
|
|
237,922
|
|
|
16.71
|
%
|
|
113,928
|
|
|
8.0
|
%
|
|
142,410
|
|
|
10.0
|
%
|
|||
Tier 1 capital (to risk-weighted assets)
|
|
223,241
|
|
|
15.68
|
%
|
|
85,446
|
|
|
6.0
|
%
|
|
113,928
|
|
|
8.0
|
%
|
|||
Tier 1 capital (to average assets)
|
|
223,241
|
|
|
13.06
|
%
|
|
68,354
|
|
|
4.0
|
%
|
|
85,442
|
|
|
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
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Noninterest income in-scope of Topic 606
|
|
|
|
|
|
|
||||||
Service charges and fees on deposits:
|
|
|
|
|
|
|
||||||
Monthly service fees
|
|
$
|
113
|
|
|
$
|
108
|
|
|
$
|
100
|
|
Account analysis fees
|
|
972
|
|
|
975
|
|
|
912
|
|
|||
Non-sufficient funds charges
|
|
364
|
|
|
326
|
|
|
276
|
|
|||
Other deposit related fees
|
|
95
|
|
|
91
|
|
|
89
|
|
|||
Total service charges and fees on deposits
|
|
1,544
|
|
|
1,500
|
|
|
1,377
|
|
|||
Debit card fees
|
|
272
|
|
|
221
|
|
|
203
|
|
|||
Gain (loss) on sale of other real estate owned
|
|
(1
|
)
|
|
3
|
|
|
(20
|
)
|
|||
Wire transfer fees
|
|
515
|
|
|
472
|
|
|
431
|
|
|||
Other service charges
|
|
221
|
|
|
243
|
|
|
208
|
|
|||
Total noninterest income in-scope of Topic 606
|
|
$
|
2,551
|
|
|
$
|
2,439
|
|
|
$
|
2,199
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
||||
Cash
|
|
$
|
2,739
|
|
|
$
|
1,254
|
|
Investment in Pacific City Bank
|
|
224,006
|
|
|
209,012
|
|
||
Other assets
|
|
89
|
|
|
49
|
|
||
Total assets
|
|
$
|
226,834
|
|
|
$
|
210,315
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
||||
Other liabilities
|
|
—
|
|
|
19
|
|
||
Total liabilities
|
|
—
|
|
|
19
|
|
||
Total shareholders’ equity
|
|
226,834
|
|
|
210,296
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
226,834
|
|
|
$
|
210,315
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Income:
|
|
|
|
|
|
|
||||||
Dividends from subsidiary
|
|
$
|
11,950
|
|
|
$
|
1,694
|
|
|
$
|
1,566
|
|
Other income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total income
|
|
11,950
|
|
|
1,694
|
|
|
1,566
|
|
|||
Expense:
|
|
|
|
|
|
|
||||||
Other expense
|
|
835
|
|
|
923
|
|
|
454
|
|
|||
Total expense
|
|
835
|
|
|
923
|
|
|
454
|
|
|||
Income (loss) before taxes and equity in undistributed subsidiary income
|
|
11,115
|
|
|
771
|
|
|
1,112
|
|
|||
Income tax benefit
|
|
(245
|
)
|
|
(277
|
)
|
|
(190
|
)
|
|||
Income (loss) before equity in undistributed subsidiary income
|
|
11,360
|
|
|
1,048
|
|
|
1,302
|
|
|||
Equity in undistributed subsidiary income
|
|
12,748
|
|
|
23,253
|
|
|
15,101
|
|
|||
Net income
|
|
24,108
|
|
|
24,301
|
|
|
16,403
|
|
|||
Other comprehensive loss, net of tax
|
|
1,590
|
|
|
(424
|
)
|
|
(450
|
)
|
|||
Comprehensive income
|
|
$
|
25,698
|
|
|
$
|
23,877
|
|
|
$
|
15,953
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
24,108
|
|
|
$
|
24,301
|
|
|
$
|
16,403
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Equity in undistributed subsidiary income
|
|
(12,748
|
)
|
|
(23,253
|
)
|
|
(15,101
|
)
|
|||
Change in other assets
|
|
(40
|
)
|
|
(29
|
)
|
|
3
|
|
|||
Change in other liabilities
|
|
(19
|
)
|
|
19
|
|
|
(28
|
)
|
|||
Net cash provided by (used in) operating activities
|
|
11,301
|
|
|
1,038
|
|
|
1,277
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Capital contribution to subsidiary
|
|
—
|
|
|
(44,361
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
|
—
|
|
|
(44,361
|
)
|
|
—
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Stock issued under stock offering, net of expenses
|
|
—
|
|
|
45,037
|
|
|
—
|
|
|||
Repurchase of common stock
|
|
(6,480
|
)
|
|
—
|
|
|
—
|
|
|||
Stock options exercised
|
|
626
|
|
|
310
|
|
|
134
|
|
|||
Cash dividends paid on common stock
|
|
(3,962
|
)
|
|
(1,760
|
)
|
|
(1,609
|
)
|
|||
Net cash provided by (used in) financing activities
|
|
(9,816
|
)
|
|
43,587
|
|
|
(1,475
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
1,485
|
|
|
264
|
|
|
(198
|
)
|
|||
Cash and cash equivalents at beginning of year
|
|
1,254
|
|
|
990
|
|
|
1,188
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
2,739
|
|
|
$
|
1,254
|
|
|
$
|
990
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||||||
($ in thousands, except per share)
|
|
March 31, 2019
|
|
June 30, 2019
|
|
September 30, 2019
|
|
December 31, 2019
|
||||||||
Interest income
|
|
$
|
22,952
|
|
|
$
|
24,030
|
|
|
$
|
23,687
|
|
|
$
|
22,276
|
|
Interest expense
|
|
5,799
|
|
|
6,338
|
|
|
6,158
|
|
|
5,616
|
|
||||
Net interest income
|
|
17,153
|
|
|
17,692
|
|
|
17,529
|
|
|
16,660
|
|
||||
Provision for loan losses
|
|
(85
|
)
|
|
394
|
|
|
(102
|
)
|
|
4,030
|
|
||||
Noninterest income
|
|
2,409
|
|
|
3,054
|
|
|
2,802
|
|
|
3,604
|
|
||||
Noninterest expense
|
|
10,289
|
|
|
10,984
|
|
|
10,777
|
|
|
10,265
|
|
||||
Income before income taxes
|
|
9,358
|
|
|
9,368
|
|
|
9,656
|
|
|
5,969
|
|
||||
Income tax expense
|
|
2,794
|
|
|
2,767
|
|
|
2,871
|
|
|
1,811
|
|
||||
Net income
|
|
$
|
6,564
|
|
|
$
|
6,601
|
|
|
$
|
6,785
|
|
|
$
|
4,158
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share, basic
|
|
$
|
0.41
|
|
|
$
|
0.41
|
|
|
$
|
0.43
|
|
|
$
|
0.26
|
|
Earnings per common share, diluted
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.42
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||||||
($ in thousands, except per share)
|
|
March 31, 2018
|
|
June 30, 2018
|
|
September 30, 2018
|
|
December 31, 2018
|
||||||||
Interest income
|
|
$
|
18,628
|
|
|
$
|
20,344
|
|
|
$
|
21,496
|
|
|
$
|
23,231
|
|
Interest expense
|
|
3,334
|
|
|
4,462
|
|
|
4,780
|
|
|
5,375
|
|
||||
Net interest income
|
|
15,294
|
|
|
15,882
|
|
|
16,716
|
|
|
17,856
|
|
||||
Provision (reversal) for loan losses
|
|
95
|
|
|
425
|
|
|
417
|
|
|
294
|
|
||||
Noninterest income
|
|
3,362
|
|
|
2,273
|
|
|
2,580
|
|
|
2,239
|
|
||||
Noninterest expense
|
|
9,631
|
|
|
10,940
|
|
|
9,520
|
|
|
10,135
|
|
||||
Income before income taxes
|
|
8,930
|
|
|
6,790
|
|
|
9,359
|
|
|
9,666
|
|
||||
Income tax expense
|
|
2,666
|
|
|
2,028
|
|
|
2,816
|
|
|
2,934
|
|
||||
Net income
|
|
$
|
6,264
|
|
|
$
|
4,762
|
|
|
$
|
6,543
|
|
|
$
|
6,732
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share, basic
|
|
$
|
0.47
|
|
|
$
|
0.35
|
|
|
$
|
0.44
|
|
|
$
|
0.42
|
|
Earnings per common share, diluted
|
|
$
|
0.46
|
|
|
$
|
0.35
|
|
|
$
|
0.44
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
•
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that the Company’s receipts and expenditures are being made only in accordance with the authorization of its management and directors; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
(a)(2)
|
Financial Statement Schedule: All financial statements schedules have been omitted as the information is not required under the related instructions or is not applicable.
|
Exhibit Number
|
|
Description
|
|
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
3.1
|
|
|
10-Q
|
|
001-38621
|
|
3.1
|
|
August 8, 2019
|
|
3.2
|
|
|
8-K
|
|
001-38621
|
|
3.2
|
|
July 2, 2019
|
|
4.1
|
|
|
10-Q
|
|
001-38621
|
|
4.1
|
|
August 8, 2019
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
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
|
|
11.1
|
|
Reserved
|
|
|
|
|
|
|
|
|
12.1
|
|
Reserved
|
|
|
|
|
|
|
|
|
21.1
|
|
|
|
|
|
|
|
|
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
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:
|
March 9, 2020
|
|
/s/ Henry Kim
|
|
|
|
Henry Kim
|
|
|
|
President and Chief Executive Officer
|
|
Signature/Name
|
|
Title
|
|
Date
|
|
|
|
|
|
|
By:
|
/s/ Henry Kim
|
|
Director, President and Chief Executive Officer
|
|
March 9, 2020
|
|
Henry Kim
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
By:
|
/s/ Timothy Chang
|
|
Executive Vice President and Chief Financial Officer
|
|
March 9, 2020
|
|
Timothy Chang
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
|
|
By:
|
/s/ Sang Young Lee
|
|
Chairman of the Board of Directors
|
|
March 9, 2020
|
|
Sang Young Lee
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Kijun Ahn
|
|
Director
|
|
March 9, 2020
|
|
Kijun Ahn
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Haeyoung Cho
|
|
Director
|
|
March 9, 2020
|
|
Haeyoung Cho
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Hong Kyun “Daniel” Park
|
|
Director
|
|
March 9, 2020
|
|
Hong Kyun “Daniel” Park
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Don Rhee
|
|
Director
|
|
March 9, 2020
|
|
Don Rhee
|
|
|
|
|
•
|
general or special voting rights;
|
•
|
preferential liquidation rights;
|
•
|
preferential cumulative or noncumulative dividend rights;
|
•
|
redemption or put rights; and
|
•
|
conversion or exchange rights.
|
•
|
adversely affect voting or other rights evidenced by, or amounts otherwise payable with respect to, the common stock or other series of preferred stock;
|
•
|
discourage an unsolicited proposal to acquire us; or
|
•
|
facilitate a particular business combination involving us.
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
March 9, 2020
|
|
/s/ Henry Kim
|
|
|
|
Henry Kim
|
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
March 9, 2020
|
|
/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:
|
March 9, 2020
|
|
/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:
|
March 9, 2020
|
|
/s/ Timothy Chang
|
|
|
|
Timothy Chang
|
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|