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California
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6022
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37-1849111
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(State or other jurisdiction of
incorporation or organization) |
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(Primary Standard Industrial
Classification Code Number) |
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(I.R.S. Employer
Identification No.) |
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Dave M. Muchnikoff, P.C.
Michael S. Sadow, P.C. Silver, Freedman, Taff & Tiernan LLP 3299 K Street, N.W. Suite 100 Washington, DC 20007 (202) 295-4500 |
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Nikki Wolontis, Esq.
King, Holmes, Paterno & Soriano, LLP 1900 Avenue of the Stars 25th Floor Los Angeles, California 90067 (818) 631-2224 |
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Large accelerated filer
☐
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Accelerated filer
☐
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Non-accelerated filer
☒ (Do not check if a smaller reporting company)
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Smaller reporting company
☐
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Emerging growth company
☒
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Title of each class of securities to be registered
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Proposed maximum aggregate
offering price(1)(2) |
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Amount of registration fee(3)
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Common Stock, no par value per share
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| | | $ | 57,500,000 | | | | | $ | 7,159 | | |
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Per Share
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Total
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Initial public offering price
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| | | $ | | | | | $ | | | ||
Underwriting discounts and commissions(1)
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| | | $ | | | | | | $ | | | |
Proceeds to us, before expenses
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| | | $ | | | | | | $ | | | |
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| | | | F-1 |
(Dollars in Thousands and as of period end dates)
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2013
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2014
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2015
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2016
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2017
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Commercial and Industrial
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| | | $ | 73,430 | | | | | $ | 71,983 | | | | | $ | 71,605 | | | | | $ | 71,093 | | | | | $ | 114,373 | | |
Residential RE
|
| | | | 17,596 | | | | | | 25,312 | | | | | | 29,378 | | | | | | 31,917 | | | | | | 84,781 | | |
Multifamily RE
|
| | | | 920 | | | | | | 8,233 | | | | | | 36,778 | | | | | | 38,236 | | | | | | 118,128 | | |
Owner occupied CRE
|
| | | | 53,974 | | | | | | 81,434 | | | | | | 131,686 | | | | | | 150,289 | | | | | | 256,451 | | |
Non-owner occupied CRE
|
| | | | 93,371 | | | | | | 125,737 | | | | | | 176,900 | | | | | | 195,753 | | | | | | 297,244 | | |
Construction and land
|
| | | | 14,598 | | | | | | 12,548 | | | | | | 17,086 | | | | | | 19,745 | | | | | | 22,720 | | |
Consumer and other(1)
|
| | | | 289 | | | | | | 452 | | | | | | 967 | | | | | | 1,317 | | | | | | 1,096 | | |
Total Loans
|
| | | $ | 254,178 | | | | | $ | 325,699 | | | | | $ | 464,400 | | | | | $ | 508,350 | | | | | $ | 894,793 | | |
|
(Dollars in Thousands and as of period end dates)
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2013
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2014
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2015
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2016
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2017
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Noninterest-bearing demand
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| | | $ | 58,017 | | | | | $ | 124,228 | | | | | $ | 152,013 | | | | | $ | 128,697 | | | | | $ | 327,309 | | |
Money market
|
| | | | 101,038 | | | | | | 143,028 | | | | | | 210,523 | | | | | | 247,732 | | | | | | 356,640 | | |
Interest-bearing demand and savings
|
| | | | 15,621 | | | | | | 42,760 | | | | | | 53,982 | | | | | | 53,186 | | | | | | 191,550 | | |
Certificates
|
| | | | 111,788 | | | | | | 127,923 | | | | | | 126,786 | | | | | | 161,144 | | | | | | 228,806 | | |
Total Deposits
|
| | | $ | 286,464 | | | | | $ | 437,939 | | | | | $ | 543,304 | | | | | $ | 590,759 | | | | | $ | 1,104,305 | | |
Cost of Interest-Bearing Deposits
|
| | | | 0.95% | | | | | | 0.89% | | | | | | 0.72% | | | | | | 0.73% | | | | | | 0.59% | | |
Net Interest Margin
|
| | | | 4.10% | | | | | | 3.95% | | | | | | 4.00% | | | | | | 4.25% | | | | | | 4.14% | | |
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Total Banks
|
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Median Asset Size
|
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Banks $100M – $500M
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| | | | 121 | | | | | $ | 229,034 | | |
Banks $500M – $1B
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| | | | 50 | | | | | $ | 751,945 | | |
Banks $1B – $1.5B
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| | | | 16 | | | | | $ | 1,208,314 | | |
Loan Type
|
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Amount
|
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Percent of
Total |
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Commercial and industrial
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| | | $ | 114,373 | | | | | | 12.8% | | |
Real estate: | | | | | | | | | | | | | |
Residential
|
| | | | 84,781 | | | | | | 9.5% | | |
Multifamily residential
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| | | | 118,128 | | | | | | 13.2% | | |
Owner occupied CRE
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| | | | 256,451 | | | | | | 28.7% | | |
Non-owner occupied CRE
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| | | | 297,244 | | | | | | 33.2% | | |
Construction and land
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| | | | 22,720 | | | | | | 2.5% | | |
Total real estate
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| | | | 779,324 | | | | | | 87.1% | | |
Consumer and other
|
| | | | 1,096 | | | | | | 0.1% | | |
Gross loans
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| | | | 894,793 | | | | | | 100.0% | | |
Deferred loan fees and costs, net
|
| | | | (469) | | | | | | | | |
Allowance for loan losses
|
| | | | (4,215) | | | | | | | | |
Loans receivable, net
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| | | $ | 890,109 | | | | | | | | |
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Deposit Type
|
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Amount
|
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Percent of
Total Deposits |
| ||||||
Noninterest-bearing demand
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| | | $ | 327,309 | | | | | | 29.6% | | |
Money market
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| | | | 356,640 | | | | | | 32.3% | | |
Interest-bearing demand and savings
|
| | | | 191,550 | | | | | | 17.3% | | |
Certificates that mature: | | | | | | | | | | | | | |
Within one year
|
| | | | 170,306 | | | | | | 15.5% | | |
After one year, but within three years
|
| | | | 44,174 | | | | | | 4.0% | | |
After three years
|
| | | | 14,326 | | | | | | 1.3% | | |
Total
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| | | $ | 1,104,305 | | | | | | 100.0% | | |
|
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At December 31,
|
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2017
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2016
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2015
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2014
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2013
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(In thousands)
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Selected Financial Condition Data: | | | | | | | |||||||||||||||||||||||||
Total assets
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| | | $ | 1,245,794 | | | | | $ | 675,299 | | | | | $ | 623,304 | | | | | $ | 504,391 | | | | | $ | 342,304 | | |
Cash and due from banks
|
| | | | 251,596 | | | | | | 130,213 | | | | | | 111,391 | | | | | | 145,281 | | | | | | 80,980 | | |
Investments available-for-sale
|
| | | | 40,505 | | | | | | 13,918 | | | | | | 23,615 | | | | | | 17,540 | | | | | | — | | |
FHLB stock and FRB stock, at cost
|
| | | | 7,759 | | | | | | 3,923 | | | | | | 3,846 | | | | | | 2,859 | | | | | | 2,250 | | |
Loans receivable, net
|
| | | | 890,109 | | | | | | 504,264 | | | | | | 460,208 | | | | | | 322,908 | | | | | | 251,105 | | |
Total liabilities
|
| | | | 1,127,159 | | | | | | 597,236 | | | | | | 550,923 | | | | | | 446,217 | | | | | | 289,982 | | |
Deposits
|
| | | | 1,104,305 | | | | | | 590,759 | | | | | | 543,304 | | | | | | 437,941 | | | | | | 286,464 | | |
Borrowed funds
|
| | | | 11,387 | | | | | | — | | | | | | — | | | | | | 6,000 | | | | | | 2,000 | | |
Total equity
|
| | | | 118,635 | | | | | | 78,063 | | | | | | 72,381 | | | | | | 58,174 | | | | | | 52,322 | | |
| | |
For the Years Ended December 31,
|
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2017
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2016
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2015
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2014
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2013
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(Dollars in thousands, except per share data)
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Selected Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and dividend income
|
| | | $ | 44,253 | | | | | $ | 29,625 | | | | | $ | 25,715 | | | | | | 19,637 | | | | | $ | 14,915 | | |
Interest expense
|
| | | | 4,312 | | | | | | 3,074 | | | | | | 2,691 | | | | | | 2,310 | | | | | | 2,010 | | |
Net interest income before provision for loan
losses |
| | | | 39,941 | | | | | | 26,551 | | | | | | 23,024 | | | | | | 17,057 | | | | | | 12,835 | | |
Provision for loan losses
|
| | | | 462 | | | | | | 598 | | | | | | 1,412 | | | | | | 1,074 | | | | | | 348 | | |
Net interest income after provision for loan losses
|
| | | | 39,479 | | | | | | 25,953 | | | | | | 21,612 | | | | | | 15,983 | | | | | | 12,487 | | |
Noninterest income
|
| | | | 4,794 | | | | | | 1,358 | | | | | | 6,902 | | | | | | 3,705 | | | | | | 628 | | |
Noninterest expense
|
| | | | 30,124 | | | | | | 16,963 | | | | | | 19,350 | | | | | | 13,063 | | | | | | 8,596 | | |
Income before provision for income taxes
|
| | | | 14,149 | | | | | | 10,348 | | | | | | 9,164 | | | | | | 6,895 | | | | | | 4,589 | | |
Provision for income taxes
|
| | | | 8,889 | | | | | | 4,436 | | | | | | 1,712 | | | | | | 1,717 | | | | | | 1,899 | | |
Net income
|
| | | $ | 5,260 | | | | | $ | 5,912 | | | | | $ | 7,452 | | | | | $ | 5,178 | | | | | $ | 2,690 | | |
Per Share Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share (EPS): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic EPS
|
| | | $ | 0.82 | | | | | $ | 1.10 | | | | | $ | 1.37 | | | | | $ | 1.09 | | | | | $ | 0.56 | | |
Diluted EPS
|
| | | | 0.81 | | | | | | 1.09 | | | | | | 1.36 | | | | | | 1.08 | | | | | | 0.54 | | |
Book value per share
|
| | | | 15.82 | | | | | | 14.26 | | | | | | 13.18 | | | | | | 11.93 | | | | | | 11.07 | | |
Tangible book value per share(1)
|
| | | | 13.81 | | | | | | 14.12 | | | | | | 12.96 | | | | | | 11.76 | | | | | | 11.05 | | |
Dividends paid during period
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dividend payout ratio
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
At or For the Years Ended December 31,
|
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| | |
2017
|
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2016
|
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2015
|
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2014
|
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2013
|
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Selected Financial Ratios and Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets
|
| | | | 0.51% | | | | | | 0.91% | | | | | | 1.24% | | | | | | 1.13% | | | | | | 0.84% | | |
Return on average equity
|
| | | | 5.28% | | | | | | 7.87% | | | | | | 10.36% | | | | | | 10.02% | | | | | | 5.24% | | |
Yield on interest-earning assets
|
| | | | 4.59% | | | | | | 4.74% | | | | | | 4.47% | | | | | | 4.55% | | | | | | 4.76% | | |
Rate paid on interest-bearing liabilities
|
| | | | 0.65% | | | | | | 0.73% | | | | | | 0.72% | | | | | | 0.89% | | | | | | 0.95% | | |
Interest rate spread(1)
|
| | | | 3.94% | | | | | | 4.01% | | | | | | 3.75% | | | | | | 3.66% | | | | | | 3.81% | | |
Net interest margin(2)
|
| | | | 4.14% | | | | | | 4.25% | | | | | | 4.00% | | | | | | 3.95% | | | | | | 4.10% | | |
Dividend payout ratio
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Noninterest expense to average total assets
|
| | | | 2.93% | | | | | | 2.61% | | | | | | 3.21% | | | | | | 2.79% | | | | | | 2.65% | | |
Average interest-earning assets to average interest-bearing liabilities
|
| | | | 144.87% | | | | | | 149.24% | | | | | | 153.08% | | | | | | 148.15% | | | | | | 143.26% | | |
Efficiency ratio(3)
|
| | | | 67.34% | | | | | | 60.78% | | | | | | 64.66% | | | | | | 62.11% | | | | | | 63.85% | | |
Capital Ratios:(4) | | | | | | | |||||||||||||||||||||||||
Tier 1 leverage
|
| | | | 8.92% | | | | | | 10.59% | | | | | | 10.59% | | | | | | 10.67% | | | | | | 15.65% | | |
Common equity tier 1
|
| | | | 12.43% | | | | | | 13.43% | | | | | | 13.30% | | | | | | N/A | | | | | | N/A | | |
Tier 1 capital ratio
|
| | | | 12.43% | | | | | | 13.43% | | | | | | 13.30% | | | | | | 15.78% | | | | | | 19.49% | | |
Total capital ratio
|
| | | | 12.94% | | | | | | 14.18% | | | | | | 14.13% | | | | | | 16.50% | | | | | | 20.53% | | |
Equity to total assets at end of period
|
| | | | 9.52% | | | | | | 11.56% | | | | | | 11.61% | | | | | | 11.53% | | | | | | 15.29% | | |
Average equity to average assets
|
| | | | 9.70% | | | | | | 11.55% | | | | | | 11.94% | | | | | | 11.28% | | | | | | 15.97% | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets to total assets(5)
|
| | | | 0.01% | | | | | | 0.28% | | | | | | 0.05% | | | | | | 0.59% | | | | | | 0.83% | | |
Nonperforming loans to total loans
|
| | | | 0.02% | | | | | | 0.22% | | | | | | 0.07% | | | | | | 0.26% | | | | | | 0.32% | | |
Allowance for loan losses to non-performing
loans |
| | | | 2,354.75% | | | | | | 343.18% | | | | | | 1,152.69% | | | | | | 84.49% | | | | | | 97.20% | | |
Allowance for loan losses to total loans
|
| | | | 0.47% | | | | | | 0.74% | | | | | | 0.83% | | | | | | 0.77% | | | | | | 1.09% | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of full service offices
|
| | | | 19 | | | | | | 10 | | | | | | 10 | | | | | | 7 | | | | | | 5 | | |
Number of full-time equivalent employees
|
| | | | 158 | | | | | | 110 | | | | | | 103 | | | | | | 78 | | | | | | 49 | | |
| | |
At March 31,
2018 |
| |
At December 31,
2017 |
| ||||||
| | |
(In thousands)
|
| |||||||||
Selected Financial Condition Data: | | | | | | | | | | | | | |
Total assets
|
| | | $ | 1,241,833 | | | | | $ | 1,245,794 | | |
Cash and due from banks
|
| | | | 256,796 | | | | | | 251,596 | | |
Investments available-for-sale
|
| | | | 36,789 | | | | | | 40,505 | | |
FHLB stock and FRB stock, at cost
|
| | | | 8,295 | | | | | | 7,759 | | |
Loans receivable, net
|
| | | | 886,229 | | | | | | 890,109 | | |
Total liabilities
|
| | | | 1,119,266 | | | | | | 1,127,159 | | |
Deposits
|
| | | | 1,098,773 | | | | | | 1,104,305 | | |
Borrowed funds
|
| | | | 11,402 | | | | | | 11,387 | | |
Total equity
|
| | | | 122,567 | | | | | | 118,635 | | |
| | |
For the Three Months Ended
March 31, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
(Dollars in thousands,
except per share data) |
| |||||||||
Interest income
|
| | | $ | 13,552 | | | | | $ | 7,402 | | |
Interest expense
|
| | | | 1,138 | | | | | | 918 | | |
Net interest income before provision for loan losses
|
| | | | 12,414 | | | | | | 6,484 | | |
Provision for loan losses
|
| | | | 254 | | | | | | 143 | | |
Net interest income after provision for loan losses
|
| | | | 12,160 | | | | | | 6,341 | | |
Noninterest income
|
| | | | 1,726 | | | | | | 736 | | |
Noninterest expense
|
| | | | 8,123 | | | | | | 4,637 | | |
Income before provision for income taxes
|
| | | | 5,763 | | | | | | 2,446 | | |
Provision for income taxes
|
| | | | 1,694 | | | | | | 1,022 | | |
Net income
|
| | | $ | 4,069 | | | | | $ | 1,418 | | |
Per Share Data: | | | | | | | | | | | | | |
Earnings per share (EPS): | | | | | | | | | | | | | |
Basic EPS
|
| | | $ | 0.54 | | | | | $ | 0.26 | | |
Diluted EPS
|
| | | | 0.54 | | | | | | 0.26 | | |
Book value per share
|
| | | | 16.32 | | | | | | 14.54 | | |
Tangible book value per share(1)
|
| | | | 14.34 | | | | | | 14.41 | | |
Dividends paid during period
|
| | | | — | | | | | | — | | |
Dividend payout ratio
|
| | | | — | | | | | | — | | |
| | |
At or For the Three Months Ended
March 31, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Selected Financial Ratios and Other Data: | | | | | | | | | | | | | |
Performance Ratios: | | | | | | | | | | | | | |
Return on average assets
|
| | | | 1.31% | | | | | | 0.83% | | |
Return on average equity
|
| | | | 13.41% | | | | | | 7.17% | | |
Yield on interest-earning assets
|
| | | | 4.66% | | | | | | 4.58% | | |
Rate paid on interest-bearing liabilities
|
| | | | 0.59% | | | | | | 0.81% | | |
Interest rate spread(1)
|
| | | | 4.07% | | | | | | 3.77% | | |
Net interest margin(2)
|
| | | | 4.27% | | | | | | 4.02% | | |
Dividend payout ratio
|
| | | | — | | | | | | — | | |
Noninterest expense to average total assets
|
| | | | 2.65% | | | | | | 2.77% | | |
Average interest-earning assets to average interest-bearing liabilities
|
| | | | 149.83% | | | | | | 142.32% | | |
Efficiency ratio(3)
|
| | | | 57.45% | | | | | | 64.23% | | |
Capital Ratios:(4) | | | | ||||||||||
Tier 1 leverage
|
| | | | 9.45% | | | | | | 11.09% | | |
Common equity tier 1
|
| | | | 13.17% | | | | | | 13.56% | | |
Tier 1 capital ratio
|
| | | | 13.17% | | | | | | 13.56% | | |
Total capital ratio
|
| | | | 13.73% | | | | | | 14.32% | | |
Equity to total assets at end of period
|
| | | | 9.87% | | | | | | 11.41% | | |
Average equity to average assets
|
| | | | 9.76% | | | | | | 11.61% | | |
Asset Quality Ratios: | | | | | | | | | | | | | |
Nonperforming assets to total assets(5)
|
| | | | 0.02% | | | | | | 0.29% | | |
Nonperforming loans to total loans
|
| | | | 0.03% | | | | | | 0.19% | | |
Allowance for loan losses to non-performing loans
|
| | | | 2008.73% | | | | | | 395.76% | | |
Allowance for loan losses to total loans
|
| | | | 0.52% | | | | | | 0.73% | | |
Other Data: | | | | | | | | | | | | | |
Number of full service offices
|
| | | | 18 | | | | | | 10 | | |
Number of full-time equivalent employees
|
| | | | 158 | | | | | | 107 | | |
| | |
Three Months Ended
March 31, |
| |
Increase (Decrease)
|
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
Amount
|
| |
Percent
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Gain on sale of loans
|
| | | $ | 651 | | | | | $ | 400 | | | | | $ | 251 | | | | | | 62.8% | | |
Service charges and other fees
|
| | | | 446 | | | | | | 143 | | | | | | 303 | | | | | | 211.9% | | |
Loan fee income
|
| | | | 245 | | | | | | 57 | | | | | | 188 | | | | | | 329.8% | | |
Other income and fees
|
| | | | 384 | | | | | | 136 | | | | | | 248 | | | | | | 182.4% | | |
Total noninterest income
|
| | | $ | 1,726 | | | | | $ | 736 | | | | | $ | 990 | | | | | | 134.6% | | |
|
| | |
Three Months Ended
March 31, |
| |
Increase (Decrease)
|
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
Amount
|
| |
Percent
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Salaries and related benefits
|
| | | $ | 4,914 | | | | | $ | 3,082 | | | | | $ | 1,832 | | | | | | 59.4% | | |
Occupancy and equipment
|
| | | | 975 | | | | | | 569 | | | | | | 406 | | | | | | 71.4% | | |
Data processing
|
| | | | 708 | | | | | | 360 | | | | | | 348 | | | | | | 96.7% | | |
Other
|
| | | | 1,525 | | | | | | 626 | | | | | | 899 | | | | | | 143.6% | | |
Total noninterest expense
|
| | | $ | 8,123 | | | | | $ | 4,637 | | | | | $ | 3,485 | | | | | | 75.2% | | |
|
| | |
At March 31,
|
| |
At December 31,
|
| ||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||||||
Tangible Common Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity
|
| | | $ | 122,567 | | | | | $ | 79,580 | | | | | $ | 118,635 | | | | | $ | 78,063 | | | | | $ | 72,381 | | | | | $ | 58,174 | | | | | $ | 52,322 | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core deposit intangibles
|
| | | | 4,483 | | | | | | 719 | | | | | | (4,772) | | | | | | (802) | | | | | | (1,201) | | | | | | (812) | | | | | | (62) | | |
Goodwill
|
| | | | 10,365 | | | | | | — | | | | | | (10,365) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity
|
| | | $ | 107,719 | | | | | $ | 78,861 | | | | | $ | 103,498 | | | | | $ | 77,261 | | | | | $ | 71,179 | | | | | $ | 57,362 | | | | | $ | 52,260 | | |
Tangible Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 1,241,833 | | | | | $ | 1,245,794 | | | | | $ | 1,245,794 | | | | | $ | 675,299 | | | | | $ | 623,304 | | | | | $ | 504,391 | | | | | $ | 342,304 | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core deposit intangibles
|
| | | | 4,483 | | | | | | 719 | | | | | | (4,772) | | | | | | (802) | | | | | | (1,201) | | | | | | (812) | | | | | | (62) | | |
Goodwill
|
| | | | 10,365 | | | | | | — | | | | | | (10,365) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible assets
|
| | | $ | 1,226,985 | | | | | $ | 1,245,075 | | | | | $ | 1,230,657 | | | | | $ | 674,497 | | | | | $ | 622,103 | | | | | $ | 503,579 | | | | | $ | 342,242 | | |
Common shares outstanding
|
| | | | 7,512,227 | | | | | | 5,472,503 | | | | | | 7,496,995 | | | | | | 5,472,426 | | | | | | 5,493,209 | | | | | | 4,875,787 | | | | | | 4,727,457 | | |
Book value per common share
|
| | | $ | 16.32 | | | | | $ | 14.54 | | | | | $ | 15.82 | | | | | $ | 14.26 | | | | | $ | 13.18 | | | | | $ | 11.93 | | | | | $ | 11.07 | | |
Tangible book value per common
share |
| | | $ | 14.34 | | | | | $ | 14.41 | | | | | $ | 13.81 | | | | | $ | 14.12 | | | | | $ | 12.96 | | | | | $ | 11.76 | | | | | $ | 11.05 | | |
Tangible common equity to tangible assets
|
| | | | 8.78% | | | | | | 6.33% | | | | | | 8.41% | | | | | | 11.45% | | | | | | 11.44% | | | | | | 11.39% | | | | | | 15.27% | | |
| | |
As of December 31, 2017
|
| | |||||||||||
| | |
Actual
|
| |
As Adjusted
|
| | ||||||||
| | |
(Dollars in thousands)
|
| ||||||||||||
Indebtedness: | | | | | | | | | | | | | | | ||
Subordinated debentures(1)
|
| | | $ | 6,392 | | | | | $ | 6,392 | | | | ||
Long-term debt(2)
|
| | | | 6,000 | | | | | | — | | | | ||
Total indebtedness
|
| | | $ | 12,392 | | | | | $ | 6,392 | | | | ||
Shareholders’ equity: | | | | | | | | | | | | | | | ||
Preferred stock – no par value, 10,000,000 authorized; no shares issued and outstanding
|
| | | | — | | | | | | — | | | | ||
Common stock – no par value, 100,000,000 authorized; 7,496,995 shares outstanding (actual) and 9,769,722 shares outstanding as adjusted
|
| | | $ | 81,307 | | | | | $ | 127,307 | | | | ||
Additional paid-in capital
|
| | | | 287 | | | | | | 287 | | | | ||
Accumulated other comprehensive income
|
| | | | 213 | | | | | | 213 | | | | ||
Retained earnings
|
| | | | 36,828 | | | | | | 36,828 | | | | ||
Total shareholders’ equity
|
| | | $ | 118,635 | | | | | $ | 164,635 | | | | ||
Book value and tangible book value per share | | | | | | | | | | | | | | | ||
Book value per share
|
| | | $ | 15.82 | | | | | $ | 16.85 | | | | ||
Tangible book value per share(3)
|
| | | | 13.81 | | | | | | 15.30 | | | | ||
Capital ratios (Basel III guidelines): | | | | | | | | | | | | | | | ||
Tier 1 leverage ratio
|
| | | | 8.73% | | | | | | 12.02% | | | | ||
Common equity Tier 1 capital ratio
|
| | | | 11.43% | | | | | | 15.84% | | | | ||
Tier 1 risk-based capital ratio
|
| | | | 12.16% | | | | | | 16.53% | | | | ||
Total risk-based capital ratio
|
| | | | 12.67% | | | | | | 17.01% | | | | ||
Tangible common equity to tangible assets(3)
|
| | | | 8.41% | | | | | | 11.71% | | | |
|
Assumed initial public offering price per share
|
| | | $ | 22.00 | | |
|
Tangible book value per share of common stock as of December 31, 2017
|
| | | | 13.81 | | |
|
Increase in tangible book value per common share attributable to new investors
|
| | | | 1.49 | | |
|
Pro forma tangible book value per common share upon completion of this offering
|
| | | | 15.30 | | |
|
Dilution per common share to new investors in this offering
|
| | | | 6.70 | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average
Price Per Share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
(in thousands) |
| |
Percent
|
| ||||||||||||||||||
Existing shareholders as of December 31, 2017
|
| | | | 7,496,995 | | | | | | 76.7% | | | | | $ | 103,498 | | | | | | 67.4% | | | | | $ | 13.81 | | |
Investors in this offering
|
| | | | 2,272,727 | | | | | | 23.3% | | | | | | 50,000 | | | | | | 32.6% | | | | | | 22.00 | | |
Total
|
| | | | 9,769,722 | | | | | | 100.0% | | | | | $ | 153,498 | | | | | | 100.0% | | | | | $ | 15.71 | | |
|
| | |
Trading Price
|
| |
Shares
Traded |
| ||||||||||||
| | |
High
|
| |
Low
|
| ||||||||||||
2016 | | | | | | | | | | | | | | | | | | | |
First quarter
|
| | | $ | 13.25 | | | | | $ | 11.96 | | | | | | 107,500 | | |
Second quarter
|
| | | | 12.15 | | | | | | 11.56 | | | | | | 225,000 | | |
Third quarter
|
| | | | 12.42 | | | | | | 11.99 | | | | | | 660,600 | | |
Fourth quarter
|
| | | | 14.92 | | | | | | 12.30 | | | | | | 371,600 | | |
2017 | | | | | | | | | | | | | | | | | | | |
First quarter
|
| | | $ | 16.75 | | | | | $ | 14.80 | | | | | | 199,200 | | |
Second quarter
|
| | | | 17.45 | | | | | | 16.35 | | | | | | 256,400 | | |
Third quarter
|
| | | | 18.00 | | | | | | 16.90 | | | | | | 434,900 | | |
Fourth quarter
|
| | | | 19.75 | | | | | | 17.80 | | | | | | 1,055,700 | | |
2018 | | | | | | | | | | | | | | | | | | | |
First quarter
|
| | | $ | 23.50 | | | | | $ | 19.25 | | | | | | 980,500 | | |
Second quarter (through April 26, 2018)
|
| | | | 22.75 | | | | | | 21.35 | | | | | | 257,800 | | |
| | |
At December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||
| | |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal securities
|
| | | $ | 15,910 | | | | | $ | 16,047 | | | | | $ | 4,003 | | | | | $ | 4,081 | | | | | $ | 5,002 | | | | | $ | 5,160 | | |
Mortgage-backed securities
|
| | | | 9,621 | | | | | | 9,740 | | | | | | 1,666 | | | | | | 1,684 | | | | | | 2,207 | | | | | | 2,229 | | |
Collateralized mortgage obligations
|
| | | | 1,758 | | | | | | 1,750 | | | | | | 1,732 | | | | | | 1,770 | | | | | | 2,813 | | | | | | 2,825 | | |
U.S. Government Agencies
|
| | | | 12,913 | | | | | | 12,968 | | | | | | 5,358 | | | | | | 5,377 | | | | | | 12,353 | | | | | | 12,372 | | |
U.S. Treasury Obligations
|
| | | | — | | | | | | — | | | | | | 1,008 | | | | | | 1,006 | | | | | | 1,031 | | | | | | 1,029 | | |
Total
|
| | | $ | 40,202 | | | | | $ | 40,505 | | | | | $ | 13,767 | | | | | $ | 13,918 | | | | | $ | 23,406 | | | | | $ | 23,615 | | |
|
| | |
Amount Due or Repricing Within:
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
One Year
or Less |
| |
Over One
to Five Years |
| |
Over Five
to Ten Years |
| |
Over
Ten Years |
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
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 |
| ||||||||||||||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal securities
|
| | | $ | — | | | | | | — | | | | | $ | 2,525 | | | | | | 1.85% | | | | | $ | 8,795 | | | | | | 2.34% | | | | | $ | 4,590 | | | | | | 2.93% | | | | | $ | 15,910 | | | | | | 2.43% | | |
Mortgage-backed securities
|
| | | | 1,401 | | | | | | 2.95% | | | | | | 409 | | | | | | 2.66% | | | | | | 2,704 | | | | | | 2.86% | | | | | | 5,107 | | | | | | 2.84% | | | | | | 9,621 | | | | | | 2.85% | | |
Collateralized mortgage
obligations |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,152 | | | | | | 2.04% | | | | | | 606 | | | | | | 2.72% | | | | | | 1,758 | | | | | | 2.27% | | |
U.S. Government agencies
|
| | | | 11,161 | | | | | | 2.21% | | | | | | 1,752 | | | | | | 1.56% | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,913 | | | | | | 2.12% | | |
Total
|
| | | $ | 12,562 | | | | | | 2.29% | | | | | $ | 4,686 | | | | | | 1.81% | | | | | $ | 12,651 | | | | | | 2.42% | | | | | $ | 10,303 | | | | | | 2.87% | | | | | $ | 40,202 | | | | | | 2.43% | | |
|
| | |
As of December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Percent
of Total |
| |
Amount
|
| |
Percent
of Total |
| |
Amount
|
| |
Percent
of Total |
| |
Amount
|
| |
Percent
of Total |
| |
Amount
|
| |
Percent
of Total |
| ||||||||||||||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 114,373 | | | | | | 12.8% | | | | | $ | 70,987 | | | | | | 14.0% | | | | | $ | 71,357 | | | | | | 15.4% | | | | | $ | 71,248 | | | | | | 21.8% | | | | | $ | 73,430 | | | | | | 28.9% | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 83,486 | | | | | | 9.3% | | | | | | 30,498 | | | | | | 6.0% | | | | | | 27,938 | | | | | | 6.0% | | | | | | 25,312 | | | | | | 7.8% | | | | | | 17,596 | | | | | | 6.9% | | |
Multifamily residential
|
| | | | 113,759 | | | | | | 12.7% | | | | | | 38,235 | | | | | | 7.5% | | | | | | 36,778 | | | | | | 7.9% | | | | | | 8,233 | | | | | | 2.5% | | | | | | 920 | | | | | | 0.4% | | |
Owner occupied CRE
|
| | | | 251,712 | | | | | | 28,1% | | | | | | 145,200 | | | | | | 28.6% | | | | | | 126,413 | | | | | | 27.2% | | | | | | 80,813 | | | | | | 24.7% | | | | | | 53,974 | | | | | | 21.2% | | |
Non-owner occupied CRE
|
| | | | 293,332 | | | | | | 32.9% | | | | | | 194,961 | | | | | | 38.4% | | | | | | 174,007 | | | | | | 37.5% | | | | | | 124,981 | | | | | | 38.6% | | | | | | 93,371 | | | | | | 36.7% | | |
Construction and land
|
| | | | 22,720 | | | | | | 2.5% | | | | | | 19,745 | | | | | | 3.9% | | | | | | 17,086 | | | | | | 3.7% | | | | | | 12,548 | | | | | | 3.9% | | | | | | 14,598 | | | | | | 5.7% | | |
Total real estate
|
| | | | 765,009 | | | | | | 85.5% | | | | | | 428,639 | | | | | | 84.3% | | | | | | 382,222 | | | | | | 82.3% | | | | | | 251,887 | | | | | | 77.4% | | | | | | 180,459 | | | | | | 71.0% | | |
Consumer and other
|
| | | | 1,096 | | | | | | 0.1% | | | | | | 1,317 | | | | | | 0.3% | | | | | | 967 | | | | | | 0.2% | | | | | | 452 | | | | | | 0.1% | | | | | | 289 | | | | | | 0.1% | | |
PCI loans
|
| | | | 14,315 | | | | | | 1.6% | | | | | | 7,407 | | | | | | 1.5% | | | | | | 9,854 | | | | | | 2.1% | | | | | | 2,112 | | | | | | 0.6% | | | | | | — | | | | | | 0.0% | | |
Total loans
|
| | | | 894,793 | | | | | | 100.0% | | | | | | 508,350 | | | | | | 100.0% | | | | | | 464,400 | | | | | | 100.0% | | | | | | 325,699 | | | | | | 100.0% | | | | | | 254,178 | | | | | | 100.0% | | |
Deferred loan fees and costs, net
|
| | | | (469) | | | | | | | | | | | | (311) | | | | | | | | | | | | (342) | | | | | | | | | | | | (292) | | | | | | | | | | | | (298) | | | | | | | | |
Allowance for loan losses
|
| | | | (4,215) | | | | | | | | | | | | (3,775) | | | | | | | | | | | | (3,850) | | | | | | | | | | | | (2,500) | | | | | | | | | | | | (2,775) | | | | | | | | |
Loans receivable, net
|
| | | $ | 890,109 | | | | | | | | | | | $ | 504,264 | | | | | | | | | | | $ | 460,208 | | | | | | | | | | | $ | 322,907 | | | | | | | | | | | $ | 251,105 | | | | | | | | |
|
| | |
2017
|
| |
2016
|
| ||||||||||||||||||||||||||||||
| | |
Legacy
|
| |
Acquired
|
| |
Total
|
| |
Legacy
|
| |
Acquired
|
| |
Total
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 76,938 | | | | | $ | 37,435 | | | | | $ | 114,373 | | | | | $ | 67,925 | | | | | $ | 3,062 | | | | | $ | 70,987 | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 19,771 | | | | | | 63,715 | | | | | | 83,486 | | | | | | 24,494 | | | | | | 6,004 | | | | | | 30,498 | | |
Multifamily residential
|
| | | | 34,041 | | | | | | 79,718 | | | | | | 113,759 | | | | | | 35,334 | | | | | | 2,901 | | | | | | 38,235 | | |
Owner occupied CRE
|
| | | | 150,419 | | | | | | 101,293 | | | | | | 251,712 | | | | | | 112,247 | | | | | | 32,953 | | | | | | 145,200 | | |
Non-owner occupied CRE
|
| | | | 195,670 | | | | | | 97,662 | | | | | | 293,332 | | | | | | 174,499 | | | | | | 20,462 | | | | | | 194,961 | | |
Construction and land
|
| | | | 17,028 | | | | | | 5,692 | | | | | | 22,720 | | | | | | 19,010 | | | | | | 735 | | | | | | 19,745 | | |
Total real estate
|
| | | | 416,929 | | | | | | 348,080 | | | | | | 765,009 | | | | | | 365,584 | | | | | | 63,055 | | | | | | 428,639 | | |
Consumer and other
|
| | | | 1,005 | | | | | | 91 | | | | | | 1,096 | | | | | | 781 | | | | | | 536 | | | | | | 1,317 | | |
PCI loans
|
| | | | — | | | | | | 14,315 | | | | | | 14,315 | | | | | | — | | | | | | 7,407 | | | | | | 7,407 | | |
Total Loans
|
| | | | 494,872 | | | | | | 399,921 | | | | | | 894,793 | | | | | | 434,290 | | | | | | 74,060 | | | | | | 508,350 | | |
Deferred loan fees and costs, net
|
| | | | (469) | | | | | | — | | | | | | (469) | | | | | | (311) | | | | | | — | | | | | | (311) | | |
Allowance for loan losses
|
| | | | (4,215) | | | | | | — | | | | | | (4,215) | | | | | | (3,775) | | | | | | — | | | | | | (3,775) | | |
Net loans
|
| | | $ | 490,188 | | | | | $ | 399,921 | | | | | $ | 890,109 | | | | | $ | 430,204 | | | | | $ | 74,060 | | | | | $ | 504,264 | | |
|
| | |
Maturing
Within One Year |
| |
Maturing
After One to Five Years |
| |
Maturing
After Five Years |
| |
Total
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Commercial and industrial
|
| | | $ | 27,437 | | | | | $ | 33,991 | | | | | $ | 52,945 | | | | | $ | 114,373 | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 4,402 | | | | | | 4,982 | | | | | | 74,102 | | | | | | 83,486 | | |
Multifamily residential
|
| | | | 2,369 | | | | | | 10,394 | | | | | | 100,996 | | | | | | 113,759 | | |
Owner occupied CRE
|
| | | | 14,248 | | | | | | 28,945 | | | | | | 208,519 | | | | | | 251,712 | | |
Non-owner occupied CRE
|
| | | | 21,356 | | | | | | 82,497 | | | | | | 189,479 | | | | | | 293,332 | | |
Construction and land
|
| | | | 17,090 | | | | | | 4,322 | | | | | | 1,308 | | | | | | 22,720 | | |
Total real estate
|
| | | | 59,465 | | | | | | 131,140 | | | | | | 574,404 | | | | | | 765,009 | | |
Consumer and other
|
| | | | 1,054 | | | | | | — | | | | | | 42 | | | | | | 1,096 | | |
PCI loans
|
| | | | 1,900 | | | | | | 3,167 | | | | | | 9,248 | | | | | | 14,315 | | |
Total loans
|
| | | | 89,856 | | | | | | 168,298 | | | | | | 636,639 | | | | | | 894,793 | | |
Deferred loan fees and costs, net
|
| | | | (469) | | | | | | — | | | | | | — | | | | | | (469) | | |
Allowance for loan losses
|
| | | | (4,215) | | | | | | — | | | | | | — | | | | | | (4,215) | | |
Loans receivable, net
|
| | | $ | 85,172 | | | | | $ | 168,298 | | | | | $ | 636,639 | | | | | $ | 890,109 | | |
|
| | |
Floating or
Adjustable Rate |
| |
Fixed Rate
|
| |
Total
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Commercial and industrial
|
| | | $ | 30,300 | | | | | $ | 56,634 | | | | | $ | 86,934 | | |
Real estate: | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 55,404 | | | | | | 23,679 | | | | | | 79,083 | | |
Multifamily residential
|
| | | | 107,139 | | | | | | 4,252 | | | | | | 111,391 | | |
Owner occupied CRE
|
| | | | 155,957 | | | | | | 81,509 | | | | | | 237,466 | | |
Non-owner occupied CRE
|
| | | | 204,753 | | | | | | 67,222 | | | | | | 271,975 | | |
Construction and land
|
| | | | 4,558 | | | | | | 1,073 | | | | | | 5,631 | | |
Total real estate
|
| | | | 527,811 | | | | | | 177,735 | | | | | | 705,546 | | |
Consumer and other
|
| | | | — | | | | | | 42 | | | | | | 42 | | |
PCI loans
|
| | | | 10,717 | | | | | | 1,698 | | | | | | 12,415 | | |
Total loans
|
| | | $ | 568,828 | | | | | $ | 236,109 | | | | | $ | 804,937 | | |
|
| | |
As of December 31, 2017
|
| |||
| | |
Average Age
(months) |
| |||
Commercial and industrial
|
| | | | 32 | | |
Real estate: | | | | | | | |
Residential
|
| | | | 36 | | |
Multifamily residential
|
| | | | 39 | | |
Owner occupied CRE
|
| | | | 42 | | |
Non-owner occupied CRE
|
| | | | 42 | | |
Construction and land
|
| | | | 34 | | |
Consumer and other
|
| | | | 62 | | |
Total
|
| | | | 40 | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Loans originated | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | $ | 35,817 | | | | | $ | 30,954 | | | | | $ | 33,948 | | |
Real estate: | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 5,323 | | | | | | 11,985 | | | | | | 6,967 | | |
Multifamily residential
|
| | | | 6,465 | | | | | | 5,808 | | | | | | 23,151 | | |
Owner occupied CRE
|
| | | | 41,180 | | | | | | 43,102 | | | | | | 47,309 | | |
Non-owner occupied CRE
|
| | | | 50,345 | | | | | | 62,862 | | | | | | 66,715 | | |
Construction and land
|
| | | | 26,801 | | | | | | — | | | | | | 23,546 | | |
Total real estate
|
| | | | 130,114 | | | | | | 123,757 | | | | | | 167,688 | | |
Consumer and other
|
| | | | 500 | | | | | | — | | | | | | 900 | | |
Total loans originated
|
| | | | 166,432 | | | | | | 154,711 | | | | | | 202,536 | | |
Loans purchased | | | | | | | | | | | | | | | | | | | |
Net loans purchased in acquisition
|
| | | | 381,336 | | | | | | — | | | | | | 75,935 | | |
Other loans purchased
|
| | | | 5,808 | | | | | | — | | | | | | — | | |
Loans sold | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | | (6,445) | | | | | | — | | | | | | — | | |
Real estate
|
| | | | (15,867) | | | | | | — | | | | | | (2,250) | | |
Principal repayments
|
| | | | (144,979) | | | | | | (109,494) | | | | | | (137,570) | | |
Transfer to real estate owned
|
| | | | — | | | | | | (1,235) | | | | | | — | | |
Increase/(decrease) in allowance for loan losses and other items, net
|
| | | | (440) | | | | | | 75 | | | | | | (1,351) | | |
Net increase in loans receivable and loans held for sale
|
| | | $ | 385,845 | | | | | $ | 44,056 | | | | | $ | 137,300 | | |
|
| | |
Past Due Loans But Still Accruing:
|
| | | |||||||||||||||||||||||||||||||
| | |
30 – 89 Days
|
| |
Over 90 Days
|
| |
Nonaccrual Loans
|
| |||||||||||||||||||||||||||
| | |
Number of
Loans |
| |
Principal
Balance of Loans |
| |
Number
of Loans |
| |
Principal
Balance of Loans |
| |
Number
of Loans |
| |
Principal
Balance of Loans |
| ||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
Commercial and industrial
|
| | | | 1 | | | | | $ | 96 | | | | | | — | | | | | $ | — | | | | | | 1 | | | | | $ | 13 | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 1 | | | | | | 349 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Multifamily residential
|
| | | | 1 | | | | | | 132 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Owner occupied CRE
|
| | | | 1 | | | | | | 336 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 78 | | |
Non-owner occupied CRE
|
| | | | 2 | | | | | | 978 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 88 | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total real estate
|
| | | | 5 | | | | | | 1,795 | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 166 | | |
Consumer and other
|
| | | | 1 | | | | | | 3 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
PCI loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total past due and nonaccrual loans
|
| | | | 7 | | | | | $ | 1,894 | | | | | | — | | | | | $ | — | | | | | | 3 | | | | | $ | 179 | | |
|
| | |
As of December 31,
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||
Loans accounted for on a non-accrual basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | $ | 13 | | | | | $ | 458 | | | | | $ | 334 | | | | | $ | 614 | | | | | $ | 40 | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | 241 | | | | | | — | | |
Multifamily residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Owner occupied CRE
|
| | | | 78 | | | | | | — | | | | | | — | | | | | | — | | | | | | 778 | | |
Non-owner occupied CRE
|
| | | | 88 | | | | | | 632 | | | | | | — | | | | | | — | | | | | | — | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total real estate
|
| | | | 166 | | | | | | 632 | | | | | | — | | | | | | 241 | | | | | | 778 | | |
Consumer and other
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total nonaccrual loans
|
| | | | 179 | | | | | | 1,090 | | | | | | 334 | | | | | | 855 | | | | | | 818 | | |
More than 90 days past due and still accruing
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total of nonaccrual and 90 days past due loans
|
| | | | 179 | | | | | | 1,090 | | | | | | 334 | | | | | | 855 | | | | | | 818 | | |
Real estate owned
|
| | | | — | | | | | | 775 | | | | | | — | | | | | | 2,103 | | | | | | 2,040 | | |
Total nonperforming assets(1)
|
| | | $ | 179 | | | | | $ | 1,865 | | | | | $ | 334 | | | | | $ | 2,958 | | | | | $ | 2,858 | | |
Troubled debt restructurings – performing
|
| | | $ | 1,045 | | | | | $ | 632 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
PCI loans
|
| | | $ | 14,315 | | | | | $ | 7,407 | | | | | $ | 9,854 | | | | | $ | 2,112 | | | | | $ | — | | |
Nonperforming assets to total assets(1)
|
| | | | 0.01% | | | | | | 0.28% | | | | | | 0.05% | | | | | | 0.59% | | | | | | 0.83% | | |
Nonperforming loans to total loans(1)
|
| | | | 0.02% | | | | | | 0.22% | | | | | | 0.07% | | | | | | 0.26% | | | | | | 0.32% | | |
| | |
Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||
Allowance at beginning of period
|
| | | $ | 3,775 | | | | | $ | 3,850 | | | | | $ | 2,500 | | | | | $ | 2,775 | | | | | $ | 2,700 | | |
Provisions for loan losses
|
| | | | 462 | | | | | | 599 | | | | | | 1,412 | | | | | | 1,074 | | | | | | 348 | | |
Recoveries:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | | 45 | | | | | | 55 | | | | | | 46 | | | | | | 119 | | | | | | 509 | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15 | | |
Owner occupied CRE
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5 | | |
Consumer and other
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | — | | | | | | — | | |
Total recoveries
|
| | | | 45 | | | | | | 67 | | | | | | 46 | | | | | | 119 | | | | | | 529 | | |
Charge-offs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | | (63) | | | | | | (490) | | | | | | (95) | | | | | | (1,112) | | | | | | (676) | | |
Owner occupied CRE
|
| | | | — | | | | | | | | | | | | — | | | | | | (356) | | | | | | (126) | | |
Non-owner occupied CRE
|
| | | | (3) | | | | | | (250) | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other
|
| | | | (1) | | | | | | — | | | | | | (13) | | | | | | — | | | | | | — | | |
Total charge-offs
|
| | | | (67) | | | | | | (741) | | | | | | (108) | | | | | | (1,468) | | | | | | (802) | | |
Net charge-offs
|
| | | | (22) | | | | | | (673) | | | | | | (62) | | | | | | (1,349) | | | | | | (273) | | |
Balance at end of period
|
| | | $ | 4,215 | | | | | $ | 3,775 | | | | | $ | 3,850 | | | | | $ | 2,500 | | | | | $ | 2,775 | | |
Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses as a percentage of total
loans |
| | | | 0.47% | | | | | | 0.74% | | | | | | 0.83% | | | | | | 0.77% | | | | | | 1.09% | | |
Allowance for loan losses to total loans excluding
PCI loans |
| | | | 0.48% | | | | | | 0.75% | | | | | | 0.85% | | | | | | 0.77% | | | | | | 1.09% | | |
Allowance for loan losses excluding acquired loans (loans not covered by the allowance)
|
| | | | 0.85% | | | | | | 0.87% | | | | | | 1.08% | | | | | | 0.96% | | | | | | 1.25% | | |
Allowance for loan losses as a percentage of total
nonperforming loans |
| | | | 2,352.28% | | | | | | 346.33% | | | | | | 1,152.69% | | | | | | 84.49% | | | | | | 97.20% | | |
Net charge-offs as a percentage of average loans outstanding during the period
|
| | | | 0.00% | | | | | | 0.14% | | | | | | 0.02% | | | | | | 0.43% | | | | | | 0.11% | | |
| | |
As of December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Loan
Balance |
| |
Allowance
by Loan Category |
| |
Percent of
Loans in Category to Total Loans |
| |
Loan
Balance |
| |
Allowance
by Loan Category |
| |
Percent of
Loans in Category to Total Loans |
| |
Loan
Balance |
| |
Allowance
by Loan Category |
| |
Percent of
Loans in Category to Total Loans |
| |||||||||||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 114,373 | | | | | $ | 911 | | | | | | 12.8% | | | | | $ | 70,987 | | | | | $ | 1,072 | | | | | | 14.0% | | | | | $ | 71,357 | | | | | $ | 1,559 | | | | | | 15.4% | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 83,486 | | | | | | 163 | | | | | | 9.3% | | | | | | 30,498 | | | | | | 160 | | | | | | 6.0% | | | | | | 27,938 | | | | | | 144 | | | | | | 6.0% | | |
Multifamily residential
|
| | | | 113,759 | | | | | | 289 | | | | | | 12.7% | | | | | | 38,235 | | | | | | 407 | | | | | | 7.5% | | | | | | 36,778 | | | | | | 384 | | | | | | 7.9% | | |
Owner occupied CRE
|
| | | | 251,712 | | | | | | 1,105 | | | | | | 28.1% | | | | | | 145,200 | | | | | | 671 | | | | | | 28.6% | | | | | | 126,413 | | | | | | 494 | | | | | | 27.2% | | |
Non-owner occupied CRE
|
| | | | 293,332 | | | | | | 1,528 | | | | | | 32.8% | | | | | | 194,961 | | | | | | 1,156 | | | | | | 38.4% | | | | | | 174,007 | | | | | | 1,032 | | | | | | 37.5% | | |
Construction and land
|
| | | | 22,720 | | | | | | 216 | | | | | | 2.5% | | | | | | 19,745 | | | | | | 304 | | | | | | 3.9% | | | | | | 17,086 | | | | | | 234 | | | | | | 3.7% | | |
Total real estate
|
| | | | 765,009 | | | | | | 3,301 | | | | | | 85.5% | | | | | | 428,639 | | | | | | 2,698 | | | | | | 84.3% | | | | | | 382,222 | | | | | | 2,288 | | | | | | 82.3% | | |
Consumer and other
|
| | | | 1,096 | | | | | | 3 | | | | | | 0.1% | | | | | | 1,317 | | | | | | 5 | | | | | | 0.3% | | | | | | 967 | | | | | | 3 | | | | | | 0.2% | | |
PCI loans
|
| | | | 14,315 | | | | | | — | | | | | | 1.6% | | | | | | 7,407 | | | | | | — | | | | | | 1.5 | | | | | | 9,854 | | | | | | — | | | | | | 2.1% | | |
Total loans
|
| | | $ | 894,793 | | | | | $ | 4,215 | | | | | | 100.0% | | | | | $ | 508,350 | | | | | $ | 3,775 | | | | | | 100.0% | | | | | $ | 464,400 | | | | | $ | 3,850 | | | | | | 100.0% | | |
|
| | |
As of December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2014
|
| |
2013
|
| ||||||||||||||||||||||||||||||
| | |
Loan
Balance |
| |
Allowance
by Loan Category |
| |
Percent of
Loans in Category to Total Loans |
| |
Loan
Balance |
| |
Allowance
by Loan Category |
| |
Percent of
Loans in Category to Total Loans |
| ||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 70,901 | | | | | $ | 1,368 | | | | | | 21.8% | | | | | $ | 73,430 | | | | | $ | 1,362 | | | | | | 28.9% | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 25,312 | | | | | | 285 | | | | | | 7.8% | | | | | | 17,596 | | | | | | 36 | | | | | | 6.9% | | |
Multifamily residential
|
| | | | 8,233 | | | | | | 11 | | | | | | 2.5% | | | | | | 920 | | | | | | 2 | | | | | | 0.4% | | |
Owner occupied CRE
|
| | | | 68,821 | | | | | | 178 | | | | | | 21.1% | | | | | | 53,568 | | | | | | 329 | | | | | | 21.1% | | |
Non-owner occupied CRE
|
| | | | 125,737 | | | | | | 362 | | | | | | 38.7% | | | | | | 93,371 | | | | | | 930 | | | | | | 36.7% | | |
Construction and land
|
| | | | 24,131 | | | | | | 293 | | | | | | 7.4% | | | | | | 15,004 | | | | | | 115 | | | | | | 5.9% | | |
Total real estate
|
| | | | 252,234 | | | | | | 1,457 | | | | | | 77.4% | | | | | | 180,459 | | | | | | 1,412 | | | | | | 71.0% | | |
Consumer and other
|
| | | | 452 | | | | | | 3 | | | | | | 0.1% | | | | | | 289 | | | | | | 1 | | | | | | 0.1% | | |
PCI loans
|
| | | | 2,112 | | | | | | — | | | | | | 0.6% | | | | | | — | | | | | | — | | | | | | —% | | |
Total loans
|
| | | $ | 325,699 | | | | | $ | 2,500 | | | | | | 100.0% | | | | | $ | 254,178 | | | | | $ | 2,775 | | | | | | 100.0% | | |
|
| | |
December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Percent
of Total Deposits |
| |
Increase/
(Decrease) |
| |
Amount
|
| |
Percent
of Total Deposits |
| |
Increase/
(Decrease) |
| |
Amount
|
| |
Percent
of Total Deposits |
| |
Increase/
(Decrease) |
| |||||||||||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand
|
| | | $ | 327,309 | | | | | | 29.6% | | | | | $ | 198,612 | | | | | $ | 128,697 | | | | | | 21.8% | | | | | $ | (23,316) | | | | | $ | 152,013 | | | | | | 28.0% | | | | | $ | 27,785 | | |
Money market
|
| | | | 356,640 | | | | | | 32.3% | | | | | | 108,908 | | | | | | 247,732 | | | | | | 41.9% | | | | | | 37,209 | | | | | | 210,523 | | | | | | 38.7% | | | | | | 67,495 | | |
Interest-bearing demand and
savings |
| | | | 191,550 | | | | | | 17.3% | | | | | | 138,364 | | | | | | 53,186 | | | | | | 9.0% | | | | | | (796) | | | | | | 53,982 | | | | | | 9.9% | | | | | | 11,221 | | |
Time deposits – $250,000 or less
|
| | | | 128,521 | | | | | | 11.7% | | | | | | 47,712 | | | | | | 80,809 | | | | | | 13.7% | | | | | | 7,271 | | | | | | 73,538 | | | | | | 13.6% | | | | | | 2,843 | | |
Time deposits – more than
$250,000 |
| | | | 100,285 | | | | | | 9.1% | | | | | | 19,950 | | | | | | 80,335 | | | | | | 13.6% | | | | | | 27,087 | | | | | | 53,248 | | | | | | 9.8% | | | | | | (3,981) | | |
Total
|
| | | $ | 1,104,305 | | | | | | 100.0% | | | | | $ | 513,546 | | | | | $ | 590,759 | | | | | | 100.0% | | | | | $ | 47,455 | | | | | $ | 543,304 | | | | | | 100.0% | | | | | $ | 105,363 | | |
|
| | |
One Year
or Less |
| |
After One
Year Through Two Years |
| |
After Two
Years Through Three Years |
| |
After Three
Years |
| |
Total
|
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
0.00 – 0.99%
|
| | | $ | 95,970 | | | | | $ | 10,775 | | | | | $ | 872 | | | | | $ | 336 | | | | | $ | 107,953 | | |
1.00 – 1.99%
|
| | | | 73,179 | | | | | | 25,568 | | | | | | 3,115 | | | | | | 6,495 | | | | | | 108,357 | | |
2.00% and above
|
| | | | 1,157 | | | | | | 3,098 | | | | | | 746 | | | | | | 7,495 | | | | | | 12,496 | | |
Total
|
| | | $ | 170,306 | | | | | $ | 39,441 | | | | | $ | 4,733 | | | | | $ | 14,326 | | | | | $ | 228,806 | | |
|
| | |
Three
Months or Less |
| |
Over Three
to Six Months |
| |
Over Six
to 12 Months |
| |
Over 12
Months |
| |
Total
|
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Certificates of deposit less than $100,000
|
| | | $ | 7,059 | | | | | $ | 5,258 | | | | | $ | 9,446 | | | | | $ | 4,801 | | | | | $ | 26,564 | | |
Certificates of deposit of $100,000 or more
|
| | | | 26,093 | | | | | | 39,231 | | | | | | 70,449 | | | | | | 53,699 | | | | | | 189,472 | | |
Public funds
|
| | | | 12,272 | | | | | | 498 | | | | | | — | | | | | | — | | | | | | 12,770 | | |
Total
|
| | | $ | 45,424 | | | | | $ | 44,987 | | | | | $ | 79,895 | | | | | $ | 58,500 | | | | | $ | 228,806 | | |
|
| | |
December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||
Maximum balance: | | | | | | | | | | | | | | | | | | | |
Subordinated debt
|
| | | $ | 6,392 | | | | | $ | — | | | | | $ | — | | |
FHLB and other borrowings
|
| | | | 13,502 | | | | | | 26,000 | | | | | | 6,000 | | |
Term loan(1)
|
| | | | 6,000 | | | | | | — | | | | | | — | | |
Average balance: | | | | | | | | | | | | | | | | | | | |
Subordinated debt
|
| | | | 3,618 | | | | | | — | | | | | | — | | |
FHLB and other borrowings
|
| | | | 85 | | | | | | 76 | | | | | | 992 | | |
Term loan(1)
|
| | | | 4,092 | | | | | | — | | | | | | — | | |
Weighted average rate: | | | | | | | | | | | | | | | | | | | |
Subordinated debt
|
| | | | 5.48% | | | | | | — | | | | | | — | | |
FHLB and other borrowings
|
| | | | 0.75% | | | | | | 0.57% | | | | | | 0.53% | | |
Term loan(1)
|
| | | | 4.71% | | | | | | — | | | | | | — | | |
| | |
Years Ended December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Average
Balance(1) |
| |
Interest
Inc/Exp |
| |
Average
Yield/Rate |
| |
Average
Balance(1) |
| |
Interest
Inc/Exp |
| |
Average
Yield/Rate |
| |
Average
Balance(1) |
| |
Interest
Inc/Exp |
| |
Average
Yield/Rate |
| |||||||||||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits
|
| | | $ | 173,321 | | | | | $ | 2,092 | | | | | | 1.21% | | | | | $ | 105,999 | | | | | $ | 566 | | | | | | 0.53% | | | | | $ | 133,223 | | | | | $ | 517 | | | | | | 0.39% | | |
Investments available-for-sale
|
| | | | 30,452 | | | | | | 631 | | | | | | 2.07% | | | | | | 21,400 | | | | | | 268 | | | | | | 1.25% | | | | | | 43,799 | | | | | | 478 | | | | | | 1.09% | | |
FHLB stock
|
| | | | 4,116 | | | | | | 356 | | | | | | 8.65% | | | | | | 2,462 | | | | | | 307 | | | | | | 12.47% | | | | | | 2,274 | | | | | | 231 | | | | | | 10.16% | | |
FRB stock
|
| | | | 1,863 | | | | | | 87 | | | | | | 4.67% | | | | | | 1,441 | | | | | | 90 | | | | | | 6.25% | | | | | | 1,296 | | | | | | 74 | | | | | | 5.71% | | |
Total loans
|
| | | | 755,404 | | | | | | 41,087 | | | | | | 5.44% | | | | | | 493,091 | | | | | | 28,394 | | | | | | 5.76% | | | | | | 395,047 | | | | | | 24,415 | | | | | | 6.18% | | |
Total interest-earning assets
|
| | | | 965,156 | | | | | | 44,253 | | | | | | 4.59% | | | | | | 624,393 | | | | | | 29,625 | | | | | | 4.74% | | | | | | 575,639 | | | | | | 25,715 | | | | | | 4.47% | | |
Noninterest-earning assets
|
| | | | 61,545 | | | | | | | | | | | | | | | | | | 25,350 | | | | | | | | | | | | | | | | | | 27,386 | | | | | | | | | | | | | | |
Total average assets
|
| | | $ | 1,026,701 | | | | | | | | | | | | | | | | | $ | 649,743 | | | | | | | | | | | | | | | | | $ | 603,025 | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings accounts
|
| | | $ | 30,748 | | | | | | 28 | | | | | | 0.09% | | | | | $ | 13,694 | | | | | | 21 | | | | | | 0.15% | | | | | $ | 13,978 | | | | | | 19 | | | | | | 0.14% | | |
Interest-bearing checking
|
| | | | 117,965 | | | | | | 120 | | | | | | 0.10% | | | | | | 40,222 | | | | | | 77 | | | | | | 0.19% | | | | | | 39,972 | | | | | | 72 | | | | | | 0.18% | | |
Money market accounts
|
| | | | 317,946 | | | | | | 1,703 | | | | | | 0.54% | | | | | | 228,011 | | | | | | 1,102 | | | | | | 0.48% | | | | | | 185,866 | | | | | | 1,257 | | | | | | 0.68% | | |
Certificates of deposit
|
| | | | 191,086 | | | | | | 2,057 | | | | | | 1.08% | | | | | | 136,382 | | | | | | 1,874 | | | | | | 1.37% | | | | | | 135,230 | | | | | | 1,338 | | | | | | 0.99% | | |
Total deposit accounts
|
| | | | 657,745 | | | | | | 3,908 | | | | | | 0.59% | | | | | | 418,309 | | | | | | 3,074 | | | | | | 0.73% | | | | | | 375,046 | | | | | | 2,686 | | | | | | 0.72% | | |
Borrowed funds
|
| | | | 8,485 | | | | | | 404 | | | | | | 4.76% | | | | | | 77 | | | | | | — | | | | | | — | | | | | | 992 | | | | | | 5 | | | | | | 0.50% | | |
Total int-bearing liabilities
|
| | | | 666,230 | | | | | | 4,312 | | | | | | 0.65% | | | | | | 418,386 | | | | | | 3,074 | | | | | | 0.73% | | | | | | 376,038 | | | | | | 2,691 | | | | | | 0.72% | | |
Noninterest-bearing liabilities
|
| | | | 260,903 | | | | | | | | | | | | | | | | | | 156,280 | | | | | | | | | | | | | | | | | | 155,001 | | | | | | | | | | | | | | |
Total average liabilities
|
| | | | 927,133 | | | | | | | | | | | | | | | | | | 574,666 | | | | | | | | | | | | | | | | | | 531,039 | | | | | | | | | | | | | | |
Average equity
|
| | | | 99,568 | | | | | | | | | | | | | | | | | | 75,077 | | | | | | | | | | | | | | | | | | 71,986 | | | | | | | | | | | | | | |
Total average liabilities and equity
|
| | | $ | 1,026,701 | | | | | | | | | | | | | | | | | $ | 649,743 | | | | | | | | | | | | | | | | | $ | 603,025 | | | | | | | | | | | | | | |
Net interest income
|
| | | | | | | | | $ | 39,941 | | | | | | | | | | | | | | | | | $ | 26,551 | | | | | | | | | | | | | | | | | $ | 23,024 | | | | | | | | |
Interest rate spread(2)
|
| | | | | | | | | | | | | | | | 3.94% | | | | | | | | | | | | | | | | | | 4.01% | | | | | | | | | | | | | | | | | | 3.75% | | |
Net interest margin(3)
|
| | | | | | | | | | | | | | | | 4.14% | | | | | | | | | | | | | | | | | | 4.25% | | | | | | | | | | | | | | | | | | 4.00% | | |
Ratio of average interest-earning assets to average interest-bearing liabilities
|
| | | | | | | | | | | | | | | | 144.87% | | | | | | | | | | | | | | | | | | 149.24% | | | | | | | | | | | | | | | | | | 153.08% | | |
| | |
Year Ended December 31, 2017
Compared to Year Ended December 31, 2016 |
| |
Year Ended December 31, 2016
Compared to Year Ended December 31, 2015 |
| ||||||||||||||||||||||||||||||
| | |
Increase/(Decrease)
Due to |
| | | | | | | |
Increase/(Decrease)
Due to |
| | |||||||||||||||||||||||
| | |
Rate
|
| |
Volume
|
| |
Total
|
| |
Rate
|
| |
Volume
|
| |
Total
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits
|
| | | $ | 716 | | | | | $ | 810 | | | | | $ | 1,526 | | | | | $ | 216 | | | | | $ | (167) | | | | | $ | 49 | | |
Investments available-for-sale
|
| | | | 176 | | | | | | 188 | | | | | | 363 | | | | | | 70 | | | | | | (281) | | | | | | (211) | | |
FHLB stock
|
| | | | (94) | | | | | | 143 | | | | | | 49 | | | | | | 53 | | | | | | 23 | | | | | | 76 | | |
FRB stock
|
| | | | (23) | | | | | | 20 | | | | | | (3) | | | | | | 7 | | | | | | 9 | | | | | | 16 | | |
Total loans
|
| | | | (1,578) | | | | | | 14,571 | | | | | | 12,693 | | | | | | (1,654) | | | | | | 5,634 | | | | | | 3,979 | | |
Total interest income
|
| | | | (802) | | | | | | 15,431 | | | | | | 14,628 | | | | | | (1,308) | | | | | | 5,218 | | | | | | 3,910 | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings accounts
|
| | | | (8) | | | | | | 15 | | | | | | 7 | | | | | | 2 | | | | | | — | | | | | | 2 | | |
Interest-bearing checking
|
| | | | (37) | | | | | | 80 | | | | | | 43 | | | | | | 4 | | | | | | 1 | | | | | | 5 | | |
Money market accounts
|
| | | | 132 | | | | | | 469 | | | | | | 601 | | | | | | (340) | | | | | | 185 | | | | | | (155) | | |
Certificates of deposit
|
| | | | 371 | | | | | | 544 | | | | | | 183 | | | | | | 520 | | | | | | 16 | | | | | | 536 | | |
Total deposit accounts
|
| | | | (284) | | | | | | 1,118 | | | | | | 835 | | | | | | 187 | | | | | | 301 | | | | | | 388 | | |
Borrowed funds
|
| | | | 3 | | | | | | 400 | | | | | | 403 | | | | | | — | | | | | | (5) | | | | | | (5) | | |
Total interest expense
|
| | | | (281) | | | | | | 1,529 | | | | | | 1,238 | | | | | | 187 | | | | | | 196 | | | | | | 383 | | |
Net interest income
|
| | | $ | (522) | | | | | $ | 13,913 | | | | | $ | 13,390 | | | | | $ | (1,496) | | | | | $ | 5,022 | | | | | $ | 3,526 | | |
|
| | |
Years Ended December 31,
|
| |
Increase (Decrease)
|
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
Amount
|
| |
Percent
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Gain on sale of loans
|
| | | $ | 2,173 | | | | | $ | — | | | | | $ | 2,173 | | | | | | NM | | |
Service charges and other fees
|
| | | | 1,249 | | | | | | 607 | | | | | | 642 | | | | | | 105.8% | | |
Loan servicing and other loan fees
|
| | | | 566 | | | | | | 331 | | | | | | 235 | | | | | | 71.0% | | |
Gain on sale of OREO, net
|
| | | | 252 | | | | | | — | | | | | | 252 | | | | | | NM | | |
Other income and fees
|
| | | | 554 | | | | | | 420 | | | | | | 134 | | | | | | 31.9% | | |
Total noninterest income
|
| | | $ | 4,794 | | | | | $ | 1,358 | | | | | $ | 3,436 | | | | | | 253.0% | | |
|
| | |
Years Ended December 31,
|
| |
Increase (Decrease)
|
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
Amount
|
| |
Percent
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Salaries and related benefits
|
| | | $ | 17,018 | | | | | $ | 10,611 | | | | | $ | 6,407 | | | | | | 60.4% | | |
Occupancy and equipment
|
| | | | 3,227 | | | | | | 2,147 | | | | | | 1,080 | | | | | | 50.3% | | |
Data processing
|
| | | | 4,735 | | | | | | 1,386 | | | | | | 3,349 | | | | | | 241.6% | | |
Other
|
| | | | 5,144 | | | | | | 2,819 | | | | | | 2,325 | | | | | | 82.5% | | |
Total noninterest expense
|
| | | $ | 30,124 | | | | | $ | 16,963 | | | | | $ | 13,161 | | | | | | 77.6% | | |
|
| | |
Actual
|
| |
Minimum
Regulatory Requirement |
| |
Minimum
Regulatory Requirement for “Well-Capitalized” |
| |||||||||||||||||||||||||||
| | |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
BayCom Corp | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2017
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio
|
| | | $ | 107,153 | | | | | | 8.73% | | | | | $ | 49,117 | | | | | | 4.00% | | | | | $ | 61,396 | | | | | | 5.00% | | |
Common equity tier 1 capital
|
| | | | 100,761 | | | | | | 11.43% | | | | | | 39,659 | | | | | | 4.50% | | | | | | 57,285 | | | | | | 6.50% | | |
Tier 1 capital to risk-weighted assets
|
| | | | 107,153 | | | | | | 12.16% | | | | | | 52,878 | | | | | | 6.00% | | | | | | 70,504 | | | | | | 8.00% | | |
Total capital to risk-weighted assets
|
| | | | 111,678 | | | | | | 12.67% | | | | | | 70,504 | | | | | | 8.00% | | | | | | 88,133 | | | | | | 10.00% | | |
United Business Bank | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2017
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio
|
| | | $ | 111,143 | | | | | | 8.92% | | | | | $ | 49,823 | | | | | | 4.00% | | | | | $ | 62,279 | | | | | | 5.00% | | |
Common equity tier 1 capital
|
| | | | 111,143 | | | | | | 12.43% | | | | | | 40,229 | | | | | | 4.50% | | | | | | 58,109 | | | | | | 6.50% | | |
Tier 1 capital to risk-weighted assets
|
| | | | 111,143 | | | | | | 12.43% | | | | | | 53,639 | | | | | | 6.00% | | | | | | 71,519 | | | | | | 8.00% | | |
Total capital to risk-weighted assets
|
| | | | 115,668 | | | | | | 12.94% | | | | | | 71,519 | | | | | | 8.00% | | | | | | 89,399 | | | | | | 10.00% | | |
Bay Commercial Bank | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2016
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio
|
| | | $ | 72,937 | | | | | | 10.59% | | | | | $ | 27,461 | | | | | | 4.00% | | | | | $ | 34,327 | | | | | | 5.00% | | |
Common equity tier 1 capital
|
| | | | 72,937 | | | | | | 13.43% | | | | | | 24,437 | | | | | | 4.50% | | | | | | 35,298 | | | | | | 6.50% | | |
Tier 1 capital to risk-weighted assets
|
| | | | 72,937 | | | | | | 13.43% | | | | | | 32,583 | | | | | | 6.00% | | | | | | 43,444 | | | | | | 8.00% | | |
Total capital to risk-weighted assets
|
| | | | 76,992 | | | | | | 14.18% | | | | | | 43,444 | | | | | | 8.00% | | | | | | 54,305 | | | | | | 10.00% | | |
| | |
One Year
or Less |
| |
After One
Year Through Three Years |
| |
After Three
Years Through Five Years |
| |
After Five
Years |
| |
Total
|
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Deposits without a stated maturity
|
| | | $ | 875,499 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 875,499 | | |
Certificates of deposit
|
| | | | 170,306 | | | | | | 39,441 | | | | | | 4,733 | | | | | | 14,326 | | | | | | 228,806 | | |
Term loan
|
| | | | 300 | | | | | | 1,200 | | | | | | 4,500 | | | | | | — | | | | | | 6,000 | | |
Subordinated debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5,387 | | | | | | 5,387 | | |
Salary continuation plan
|
| | | | 300 | | | | | | 600 | | | | | | 600 | | | | | | 2,546 | | | | | | 4,046 | | |
Operating lease obligations
|
| | | | 1,899 | | | | | | 3,208 | | | | | | 2,033 | | | | | | 1,018 | | | | | | 8,158 | | |
Total contractual obligations
|
| | | $ | 1,048,304 | | | | | $ | 44,449 | | | | | $ | 11,866 | | | | | $ | 23,277 | | | | | $ | 1,127,896 | | |
|
| | |
Net Interest Income Sensitivity
Immediate Change in Rates |
| |||||||||||||||||||||
| | |
-100
|
| |
+100
|
| |
+200
|
| |
+300
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
Dollar change
|
| | | $ | (8,011) | | | | | $ | 1,917 | | | | | $ | 2,908 | | | | | $ | 3,221 | | |
Percent change
|
| | | | (8.5)% | | | | | | 2.0% | | | | | | 3.1% | | | | | | 3.4% | | |
December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | |
Dollar change
|
| | | $ | (3,515) | | | | | $ | 1,346 | | | | | $ | 2,569 | | | | | $ | 3,630 | | |
Percent change
|
| | | | (6.7)% | | | | | | 2.6% | | | | | | 4.9% | | | | | | 6.9% | | |
| | |
Economic Value of Equity Sensitivity
Immediate Change in Rates |
| |||||||||||||||||||||
| | |
-100
|
| |
+100
|
| |
+200
|
| |
+300
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
Dollar change
|
| | | $ | (22,343) | | | | | $ | 5,090 | | | | | $ | 6,307 | | | | | $ | 5,246 | | |
Percent change
|
| | | | (10.0)% | | | | | | 2.3% | | | | | | 2.8% | | | | | | 2.3% | | |
December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | |
Dollar change
|
| | | $ | (8,943) | | | | | $ | 2,633 | | | | | $ | 2,720 | | | | | $ | 2,219 | | |
Percent change
|
| | | | (7.6)% | | | | | | 2.2% | | | | | | 2.3% | | | | | | 1.9% | | |
(Dollars in Thousands and as of period end dates)
|
| |
2013
|
| |
2014
|
| |
2015
|
| |
2016
|
| |
2017
|
| |||||||||||||||
Commercial and Industrial
|
| | | $ | 73,430 | | | | | $ | 71,983 | | | | | $ | 71,605 | | | | | $ | 71,093 | | | | | $ | 114,373 | | |
Residential RE
|
| | | | 17,596 | | | | | | 25,312 | | | | | | 29,378 | | | | | | 31,917 | | | | | | 84,781 | | |
Multifamily RE
|
| | | | 920 | | | | | | 8,233 | | | | | | 36,778 | | | | | | 38,236 | | | | | | 118,128 | | |
Owner occupied CRE
|
| | | | 53,974 | | | | | | 81,434 | | | | | | 131,686 | | | | | | 150,289 | | | | | | 256,451 | | |
Non-owner occupied CRE
|
| | | | 93,371 | | | | | | 125,737 | | | | | | 176,900 | | | | | | 195,753 | | | | | | 297,244 | | |
Construction and land
|
| | | | 14,598 | | | | | | 12,548 | | | | | | 17,086 | | | | | | 19,745 | | | | | | 22,720 | | |
Consumer and other(1)
|
| | | | 289 | | | | | | 452 | | | | | | 967 | | | | | | 1,317 | | | | | | 1,096 | | |
Total Loans
|
| | | $ | 254,178 | | | | | $ | 325,699 | | | | | $ | 464,400 | | | | | $ | 508,350 | | | | | $ | 894,793 | | |
|
(Dollars in Thousands and as of period end dates)
|
| |
2013
|
| |
2014
|
| |
2015
|
| |
2016
|
| |
2017
|
| |||||||||||||||
Noninterest-bearing demand
|
| | | $ | 58,017 | | | | | $ | 124,228 | | | | | $ | 152,013 | | | | | $ | 128,697 | | | | | $ | 327,309 | | |
Money market
|
| | | | 101,038 | | | | | | 143,028 | | | | | | 210,523 | | | | | | 247,732 | | | | | | 356,640 | | |
Interest-bearing demand and savings
|
| | | | 15,621 | | | | | | 42,760 | | | | | | 53,982 | | | | | | 53,186 | | | | | | 191,550 | | |
Certificates
|
| | | | 111,788 | | | | | | 127,923 | | | | | | 126,786 | | | | | | 161,144 | | | | | | 228,806 | | |
Total Deposits
|
| | | $ | 286,464 | | | | | $ | 437,939 | | | | | $ | 543,304 | | | | | $ | 590,759 | | | | | $ | 1,104,305 | | |
Cost of Interest-Bearing Deposits
|
| | | | 0.95% | | | | | | 0.88% | | | | | | 0.72% | | | | | | 0.73% | | | | | | 0.59% | | |
Net Interest Margin
|
| | | | 4.10% | | | | | | 3.95% | | | | | | 4.00% | | | | | | 4.25% | | | | | | 4.14% | | |
| | |
Total Banks
|
| |
Median Asset Size
|
| ||||||
Banks $100M – $500M
|
| | | | 121 | | | | | $ | 229,034 | | |
Banks $500M – $1B
|
| | | | 50 | | | | | $ | 751,945 | | |
Banks $1B – $1.5B
|
| | | | 16 | | | | | $ | 1,208,314 | | |
Loan Type
|
| |
Amount
|
| |
Percent of
Total |
| ||||||
| | |
(In thousands)
|
| | ||||||||
Commercial and industrial
|
| | | $ | 114,373 | | | | | | 12.8% | | |
Real estate: | | | | | | | | | | | | | |
Residential
|
| | | | 84,781 | | | | | | 9.5% | | |
Multifamily residential
|
| | | | 118,128 | | | | | | 13.2% | | |
Owner occupied CRE
|
| | | | 256,451 | | | | | | 28.7% | | |
Non-owner occupied CRE
|
| | | | 297,244 | | | | | | 33.2% | | |
Construction and land
|
| | | | 22,720 | | | | | | 2.5% | | |
Total real estate
|
| | | | 779,324 | | | | | | 87.1% | | |
Consumer and other
|
| | | | 1,096 | | | | | | 0.1% | | |
Total loans
|
| | | | 894,793 | | | | | | 100.0% | | |
Deferred loan fees and costs, net
|
| | | | (469) | | | | | | | | |
Allowance for loan losses
|
| | | | (4,215) | | | | | | | | |
Loans receivable, net
|
| | | $ | 890,109 | | | | | | | | |
|
| | |
San Francisco Bay
Region(1) |
| |
Other California
|
| |
Total in State of
California |
| |
All Other States(2)
|
| |
Total
|
| | |||||||||||||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
% of
Total in Category |
| |
Amount
|
| |
% of
Total in Category |
| |
Amount
|
| |
% of
Total in Category |
| |
Amount
|
| |
% of
Total in Category |
| |
Amount
|
| |
% of
Total in Category |
| | ||||||||||||||||||||||||||||||||
| | |
(Dollars in thousands)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 85,243 | | | | | | 14.1% | | | | | $ | 2,783 | | | | | | 2.1% | | | | | $ | 88,026 | | | | | | 11.9% | | | | | $ | 26,347 | | | | | | 16.8% | | | | | $ | 114,373 | | | | | | 12.8% | | | | ||
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Residential
|
| | | | 63,933 | | | | | | 10.6% | | | | | | 6,793 | | | | | | 5.1% | | | | | | 70,726 | | | | | | 9.6% | | | | | | 14,055 | | | | | | 8.9% | | | | | | 84,781 | | | | | | 9.5% | | | | ||
Multifamily residential
|
| | | | 83,699 | | | | | | 13.9% | | | | | | 11,297 | | | | | | 8.5% | | | | | | 94,996 | | | | | | 12.9% | | | | | | 23,132 | | | | | | 14.7% | | | | | | 118,128 | | | | | | 13.2% | | | | ||
Owner occupied CRE
|
| | | | 171,386 | | | | | | 28.4% | | | | | | 48,323 | | | | | | 36.1% | | | | | | 219,709 | | | | | | 29.8% | | | | | | 36,742 | | | | | | 23.4% | | | | | | 256,451 | | | | | | 28.7% | | | | ||
Non-owner occupied CRE
|
| | | | 183,451 | | | | | | 30.3% | | | | | | 61,464 | | | | | | 46.0% | | | | | | 244,915 | | | | | | 33.2% | | | | | | 52,329 | | | | | | 33.3% | | | | | | 297,244 | | | | | | 33.2% | | | | ||
Construction and land
|
| | | | 15,182 | | | | | | 2.5% | | | | | | 2,924 | | | | | | 2.2% | | | | | | 18,106 | | | | | | 2.5% | | | | | | 4,614 | | | | | | 2.9% | | | | | | 22,720 | | | | | | 2.5% | | | | ||
Total real estate
|
| | | | 517,649 | | | | | | 85.7% | | | | | | 130,801 | | | | | | 97.9% | | | | | | 648,452 | | | | | | 88.0% | | | | | | 130,872 | | | | | | 83.2% | | | | | | 779,324 | | | | | | 87.1% | | | | ||
Consumer and other
|
| | | | 1,069 | | | | | | 0.2% | | | | | | — | | | | | | 0.0% | | | | | | 1,069 | | | | | | 0.1% | | | | | | 27 | | | | | | 0.0% | | | | | | 1,096 | | | | | | 0.1% | | | | ||
Total loans
|
| | | $ | 603,963 | | | | | | 100.0% | | | | | $ | 133,584 | | | | | | 100.0% | | | | | $ | 737,547 | | | | | | 100.0% | | | | | $ | 157,246 | | | | | | 100.0% | | | | | $ | 894,793 | | | | | | 100.0% | | | | ||
|
| | | | | | | | |
Loan Type
|
| | | | | | | | | | | | |||||||||||||||||||||||||||||||
Borrower Type
|
| |
Number of
Loans |
| |
Commercial
& Industrial |
| |
CRE
Owner Occupied |
| |
CRE
Non-Owner Occupied |
| |
Construction
|
| |
Total
|
| | | | | | ||||||||||||||||||||||||||||
| | |
(Dollars in thousands)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate investor
|
| | | | 3 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,256 | | | | | $ | 2,546 | | | | | $ | 17,802 | | | | | | | | ||||||||||
Commercial real estate investor
|
| | | | 9 | | | | | | 3,075 | | | | | | 10,163 | | | | | | 5,727 | | | | | | — | | | | | | 18,965 | | | | | | | | ||||||||||
Individual investor
|
| | | | 3 | | | | | | — | | | | | | 9,601 | | | | | | 7,381 | | | | | | — | | | | | | 16,982 | | | | | | | | ||||||||||
Individual investor
|
| | | | 6 | | | | | | 750 | | | | | | 1,417 | | | | | | 5,999 | | | | | | 5,035 | | | | | | 13,201 | | | | | | | | ||||||||||
Individual investor
|
| | | | 8 | | | | | | 3,451 | | | | | | 9,308 | | | | | | — | | | | | | — | | | | | | 12,759 | | | | | | | | ||||||||||
Totals
|
| | | | 29 | | | | | $ | 7,276 | | | | | $ | 30,489 | | | | | $ | 34,363 | | | | | $ | 7,581 | | | | | $ | 79,709 | | | | | | | | ||||||||||
|
| | |
December 31, 2017
|
| |
December 31, 2016
|
| ||||||||||||||||||
| | |
Amount
|
| |
% of
Total in Category |
| |
Amount
|
| |
% of
Total in Category |
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Retail
|
| | | $ | 74,380 | | | | | | 11.1% | | | | | $ | 53,344 | | | | | | 13.9% | | |
Multifamily residential
|
| | | | 118,128 | | | | | | 17.6% | | | | | | 37,995 | | | | | | 10.0% | | |
Hotel/motel
|
| | | | 95,295 | | | | | | 14.2% | | | | | | 51,375 | | | | | | 13.4% | | |
Office
|
| | | | 99,187 | | | | | | 14.8% | | | | | | 46,011 | | | | | | 12.0% | | |
Gas station
|
| | | | 69,241 | | | | | | 10.3% | | | | | | 48,912 | | | | | | 12.7% | | |
Convalescent facility
|
| | | | 31,419 | | | | | | 4.7% | | | | | | 33,990 | | | | | | 8.8% | | |
Industrial
|
| | | | 60,751 | | | | | | 9.0% | | | | | | 25,180 | | | | | | 6.6% | | |
Restaurants
|
| | | | 21,438 | | | | | | 3.2% | | | | | | 10,659 | | | | | | 2.8% | | |
Agricultural real estate
|
| | | | 17,037 | | | | | | 2.5% | | | | | | 19,954 | | | | | | 5.2% | | |
Other
|
| | | | 84,946 | | | | | | 12.6% | | | | | | 56,857 | | | | | | 14.7% | | |
Total
|
| | | $ | 671,822 | | | | | | 100.0% | | | | | $ | 384,278 | | | | | | 100.0% | | |
|
Office Location
|
| |
Owned/Leased
|
|
San Francisco Bay Area, California | | | | |
500 Ygnacio Valley Rd, Suites 130, 200, 350
and 390 Walnut Creek, CA |
| | Leased | |
3895 E Castro Valley, Suite A
Castro Valley, CA |
| | Leased | |
700 E El Camino Real, Suite 110
Mountain View, CA |
| | Leased | |
960 School St
Napa, CA |
| | Leased | |
155 Grand Ave, Suite 105
Oakland, CA |
| | Leased; Closed 1/19/18 | |
100 Hegenberger Rd
Oakland, CA |
| | Owned | |
465 Main St
Pleasanton, CA |
| | Leased | |
2300 First St, Suite 100
Livermore, CA |
| | Leased | |
1150 S Bascom Ave, Suite 29
San Jose, CA |
| | Leased; Closed 3/30/18 | |
2 Harrison St, Suite 158
San Francisco, CA |
| | Leased | |
2250 N First St, Suite 102
San Jose, CA |
| | Leased | |
Central Valley, California | | | | |
22 W Yokuts Ave
Stockton, CA |
| | Leased | |
4426 E Waterloo Rd
Stockton, CA |
| | Leased | |
2815 J St
Sacramento, CA |
| | Leased | |
Office Location
|
| |
Owned/Leased
|
|
Southern California | | | | |
330 N Brand Blvd, Suite 120
Glendale, CA |
| | Leased | |
3750 Kilroy Airway Way, Suite 130
Long Beach, CA |
| | Leased | |
3530 Wilshire Blvd, Suite 1400
Los Angeles, CA |
| | Leased | |
Washington | | | | |
14900 Interurban Ave S, Suite 150
Seattle, WA |
| | Leased | |
520 Pike St, Suite 2750
Seattle, WA |
| | Leased | |
New Mexico | | | | |
1500 Mercantile Ave NE
Albuquerque, NM |
| | Owned | |
Name
|
| |
Age
|
| |
Position(s) Held
|
| |
Director
Since(1) |
| |
Term
Expires |
|
DIRECTORS
|
| ||||||||||||
Lloyd W. Kendall, Jr. | | |
71
|
| | Chairman of the Board | | |
2004
|
| |
2018
|
|
George J. Guarini | | |
64
|
| | President, Chief Executive Officer and Director | | |
2004
|
| |
2018
|
|
James S. Camp | | |
66
|
| | Director | | |
2004
|
| |
2018
|
|
Harpreet S. Chaudhary | | |
56
|
| | Director | | |
2011
|
| |
2018
|
|
Rocco Davis | | |
59
|
| | Director | | |
2017
|
| |
2018
|
|
Malcolm F. Hotchkiss | | |
69
|
| | Director | | |
2017
|
| |
2018
|
|
Robert G. Laverne, MD
|
| |
69
|
| | Director | | |
2004
|
| |
2018
|
|
David M. Spatz | | |
70
|
| | Director | | |
2004
|
| |
2018
|
|
EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS
|
| ||||||||||||
Janet L. King | | |
55
|
| | Sr. Executive Vice President and Chief Operating Officer | | |
N/A
|
| |
N/A
|
|
Keary L. Colwell | | |
58
|
| | Sr. Executive Vice President, Chief Financial Officer and Secretary | | |
N/A
|
| |
N/A
|
|
Izabella L. Zhu(2) | | |
39
|
| | Executive Vice President and Chief Risk Officer | | |
N/A
|
| |
N/A
|
|
David J. Funkhouser(2) | | |
62
|
| | Executive Vice President and Chief Credit Officer | | |
N/A
|
| |
N/A
|
|
Charles Yun(2) | | |
49
|
| | Executive Vice President and Chief Lending Officer | | |
N/A
|
| |
N/A
|
|
Mary Therese Curley(2) | | |
60
|
| | Executive Vice President, Director of Labor Service Division | | |
N/A
|
| |
N/A
|
|
Director Name
|
| |
Audit
Committee |
| |
Compensation
Committee |
| |
Governance and
Nominating Committee |
| |||||||||
Lloyd W. Kendall, Jr.
|
| | | | X | | | | | | X | | | | | | X* | | |
George J. Guarini
|
| | | | | | | | | | | | | | | | | | |
James S. Camp
|
| | | | | | | | | | X | | | | | | X | | |
Harpreet S. Chaudhary
|
| | | | X* | | | | | | X | | | | | | | | |
Rocco Davis
|
| | | | | | | | | | | | | | | | | | |
Malcolm F. Hotchkiss
|
| | | | X | | | | | | X | | | | | | | | |
Robert G. Laverne, MD
|
| | | | X | | | | | | | | | | | | | | |
David M. Spatz
|
| | | | | | | | | | X* | | | | | | X | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
|
| |
Bonus
|
| |
Stock
Awards(1) |
| |
All Other
Compensation(2) |
| |
Total
|
| |||||||||||||||
George J. Guarini
President and CEO |
| |
2017
|
| | | $ | 450,000 | | | | | $ | 411,122 | | | | | $ | 112,505 | | | | | $ | 282,571 | | | | | $ | 1,256,198 | | |
Janet L. King
Senior Executive Vice President and COO |
| |
2017
|
| | | $ | 325,000 | | | | | $ | 212,095 | | | | | $ | 48,756 | | | | | $ | 62,049 | | | | | $ | 647,900 | | |
Keary L. Colwell
Senior Executive Vice President, CFO and Corporate Secretary |
| |
2017
|
| | | $ | 325,000 | | | | | $ | 212,095 | | | | | $ | 48,756 | | | | | $ | 61,910 | | | | | $ | 647,761 | | |
Name
|
| |
401(k)
Matching Contribution |
| |
Salary
Continuation Plan |
| |
Premiums on
Split-dollar life insurance benefits |
| |
Total
|
| ||||||||||||
George J. Guarini
|
| | | $ | 24,000 | | | | | $ | 256,050 | | | | | $ | 2,521 | | | | | $ | 282,571 | | |
Janet L. King
|
| | | | 17,735 | | | | | | 44,314 | | | | | | — | | | | | | 62,049 | | |
Keary L. Colwell
|
| | | | 17,596 | | | | | | 44,314 | | | | | | — | | | | | | 61,910 | | |
| | |
Stock Awards
|
| | | | | | | |||||||||
Name
|
| |
Number of
Unvested Shares |
| |
Market
Value of Unvested Shares(1) |
| |
Vesting
Date |
| |||||||||
George J. Guarini
|
| | | | 4,541 | | | | | $ | 88,322 | | | | | | 1/1/2018 | | |
| | | | | 6,098 | | | | | | 118,606 | | | | | | 8/19/2018 | | |
| | | | | 4,540 | | | | | | 88,303 | | | | | | 1/1/2019 | | |
| | | | | 6,098 | | | | | | 118,606 | | | | | | 8/19/2019 | | |
| | | | | 4,540 | | | | | | 88,303 | | | | | | 1/1/2020 | | |
| | | | | 2,966 | | | | | | 57,689 | | | | | | 1/1/2021 | | |
| | | | | 1,514 | | | | | | 29,447 | | | | | | 1/1/2022 | | |
Total
|
| | | | 30,297 | | | | | | 589,276 | | | | | | | | |
Janet L. King
|
| | | | 1,810 | | | | | | 35,205 | | | | | | 1/1/2018 | | |
| | | | | 1,677 | | | | | | 32,618 | | | | | | 8/19/2018 | | |
| | | | | 1,810 | | | | | | 35,205 | | | | | | 1/1/2019 | | |
| | | | | 1,676 | | | | | | 32,598 | | | | | | 8/19/2019 | | |
| | | | | 1,809 | | | | | | 35,185 | | | | | | 1/1/2020 | | |
| | | | | 1,209 | | | | | | 23,515 | | | | | | 1/1/2021 | | |
| | | | | 656 | | | | | | 12,759 | | | | | | 1/1/2022 | | |
Total
|
| | | | 10,647 | | | | | | 207,085 | | | | | | | | |
Keary L. Colwell
|
| | | | 1,810 | | | | | | 35,205 | | | | | | 1/1/2018 | | |
| | | | | 1,677 | | | | | | 32,618 | | | | | | 8/19/2018 | | |
| | | | | 1,810 | | | | | | 35,205 | | | | | | 1/1/2019 | | |
| | | | | 1,676 | | | | | | 32,598 | | | | | | 8/19/2019 | | |
| | | | | 1,809 | | | | | | 35,185 | | | | | | 1/1/2020 | | |
| | | | | 1,209 | | | | | | 23,515 | | | | | | 1/1/2021 | | |
| | | | | 656 | | | | | | 12,759 | | | | | | 1/1/2022 | | |
Total
|
| | | | 10,647 | | | | | | 207,085 | | | | | | | | |
Name
|
| |
Percentage of
Gross Proceeds(1) |
| |
Aggregate Grant
Date Value of IPO Awards(2) |
| ||||||
Non-employee directors:(3) | | | | | | | | | | | | | |
Lloyd W. Kendall, Jr
|
| | | | 0.120% | | | | | $ | 69,193 | | |
James S. Camp
|
| | | | 0.120 | | | | | | 69,193 | | |
Harpreet S. Chaudhary
|
| | | | 0.082 | | | | | | 47,097 | | |
Rocco Davis
|
| | | | 0.049 | | | | | | 28,157 | | |
Malcolm F. Hotchkiss
|
| | | | 0.049 | | | | | | 28,157 | | |
Robert G. Laverne, MD
|
| | | | 0.120 | | | | | | 69,193 | | |
David M. Spatz
|
| | | | 0.120 | | | | | | 69,193 | | |
Executive officers: | | | | | | | | | | | | | |
George J. Guarini
|
| | | | 3.025 | | | | | | 1,739,375 | | |
Janet L. King
|
| | | | 0.825 | | | | | | 474,375 | | |
Keary L. Colwell
|
| | | | 0.825 | | | | | | 474,375 | | |
Total(4) | | | | | 5.335% | | | | | $ | 3,068,308 | | |
|
Name
|
| |
Fees Earned
or Paid in Cash |
| |
Stock
Awards(1) |
| |
Total
Compensation |
| |||||||||
Lloyd W. Kendall, Jr.
|
| | | $ | 47,100 | | | | | $ | 23,994 | | | | | $ | 71,094 | | |
James S. Camp
|
| | | | 23,500 | | | | | | 23,994 | | | | | | 47,494 | | |
Harpreet S. Chaudhary
|
| | | | 33,900 | | | | | | 23,994 | | | | | | 57,894 | | |
Rocco Davis(2)
|
| | | | 4,000 | | | | | | 9,999 | | | | | | 13,999 | | |
Malcolm F. Hotchkiss(2)
|
| | | | 4,000 | | | | | | 9,999 | | | | | | 13,999 | | |
Robert G. Laverne, MD
|
| | | | 23,500 | | | | | | 23,994 | | | | | | 47,494 | | |
David M. Spatz
|
| | | | 34,500 | | | | | | 23,994 | | | | | | 58,494 | | |
Name of Beneficial Owners Greater than 5% Shareholders
|
| |
Beneficial Ownership
Prior to the Completion of this Offering |
| |
Beneficial Ownership
After the Completion of this Offering(12) |
| ||||||||||||||||||
|
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| ||||||||||||||
EJF Sidecar Fund Series
LLC Small Financial Equities 2107 Wilson Boulevard, Suite 410 Arlington, VA 22201 |
| | | | 525,000 | | | | | | 7.0% | | | | | | 525,000 | | | | | | 5.3% | | |
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | |
Lloyd W. Kendall, Jr.(1)
|
| | | | 67,274 | | | | | | * | | | | | | 69,921 | | | | | | * | | |
George J. Guarini(2)
|
| | | | 78,447 | | | | | | 1.0% | | | | | | 147,197 | | | | | | 1.5% | | |
James S. Camp(3)
|
| | | | 104,552 | | | | | | 1.4% | | | | | | 107,199 | | | | | | 1.1% | | |
Harpreet S. Chaudhary(4)
|
| | | | 24,222 | | | | | | * | | | | | | 26,114 | | | | | | * | | |
Rocco Davis(5)
|
| | | | 1,793 | | | | | | * | | | | | | 3,036 | | | | | | * | | |
Malcolm F. Hotchkiss(6)
|
| | | | 8,573 | | | | | | * | | | | | | 9,816 | | | | | | * | | |
Robert G. Laverne, M.D,(7)
|
| | | | 103,825 | | | | | | 1.4% | | | | | | 106,472 | | | | | | 1.1% | | |
David M. Spatz(8)
|
| | | | 58,435 | | | | | | * | | | | | | 61,082 | | | | | | * | | |
Keary L. Colwell(9)
|
| | | | 19,429 | | | | | | * | | | | | | 38,179 | | | | | | * | | |
Janet L. King(10)
|
| | | | 23,431 | | | | | | * | | | | | | 42,181 | | | | | | * | | |
All directors and executive officers as a group (14 persons)(11)
|
| | | | 494,348 | | | | | | 6.6% | | | | | | 619,348 | | | | | | 6.3% | | |
|
Underwriter
|
| |
Number of Shares
|
|
| FIG Partners, LLC | | |
|
|
| D.A. Davidson & Co. | | | | |
| Total | | | | |
|
| | |
Per Share
|
| |
No Exercise
|
| |
Full Exercise
|
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount
|
| | | | | | | | | | | | | | | | | | |
Proceeds to us, before expenses
|
| | | | | | | | | | | | | | | | | | |
| December 31, 2017 and 2016 | | | |||||
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-9 | | |
| | |
2017
|
| |
2016
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 14,754 | | | | | $ | 5,666 | | |
Federal funds sold
|
| | | | 235,099 | | | | | | 123,018 | | |
Cash and cash equivalents
|
| | | | 249,853 | | | | | | 128,684 | | |
Interest bearing deposits in banks
|
| | | | 1,743 | | | | | | 1,529 | | |
Investment securities available-for-sale
|
| | | | 40,505 | | | | | | 13,918 | | |
Federal Home Loan Bank stock, at par
|
| | | | 4,772 | | | | | | 2,511 | | |
Federal Reserve Bank stock, at par
|
| | | | 2,987 | | | | | | 1,412 | | |
Loans held for sale
|
| | | | 3,245 | | | | | | — | | |
Loans
|
| | | | 891,548 | | | | | | 508,350 | | |
Deferred fees, net
|
| | | | (469) | | | | | | (311) | | |
Allowance for loan losses
|
| | | | (4,215) | | | | | | (3,775) | | |
Loans, net
|
| | | | 890,109 | | | | | | 504,264 | | |
Premises and equipment, net
|
| | | | 8,399 | | | | | | 1,106 | | |
Other real estate owned (OREO)
|
| | | | — | | | | | | 775 | | |
Core deposit intangible
|
| | | | 4,772 | | | | | | 802 | | |
Cash surrender value of Bank owned life insurance policies, net
|
| | | | 17,132 | | | | | | 6,470 | | |
Goodwill
|
| | | | 10,365 | | | | | | — | | |
Interest receivable and other assets
|
| | | | 15,157 | | | | | | 13,828 | | |
Total Assets
|
| | | $ | 1,245,794 | | | | | $ | 675,299 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Non-interest bearing deposits
|
| | | $ | 327,309 | | | | | $ | 128,697 | | |
Interest bearing deposits
|
| | | | 776,996 | | | | | | 462,062 | | |
Total deposits
|
| | | | 1,104,305 | | | | | | 590,759 | | |
Other borrowings
|
| | | | 6,000 | | | | | | — | | |
Salary continuation plan
|
| | | | 4,046 | | | | | | 3,157 | | |
Interest payable and other liabilities
|
| | | | 7,421 | | | | | | 3,320 | | |
Junior subordinated deferrable interest debentures, net
|
| | | | 5,387 | | | | | | — | | |
Total liabilities
|
| | | | 1,127,159 | | | | | | 597,236 | | |
Commitments and contingencies (Note 14) | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Preferred stock – no par value; 10,000,000 shares authorized; no shares issued and outstanding
|
| | | | — | | | | | | — | | |
Common stock – no par value; 100,000,000 shares authorized in 2017 and 2016;
7,496,995 and 5,472,426 shares issued and outstanding in 2017 and 2016, respectively |
| | | | 81,307 | | | | | | 46,084 | | |
Additional paid in capital
|
| | | | 287 | | | | | | 287 | | |
Accumulated other comprehensive income, net of tax
|
| | | | 213 | | | | | | 88 | | |
Retained earnings
|
| | | | 36,828 | | | | | | 31,604 | | |
Total shareholders’ equity
|
| | | | 118,635 | | | | | | 78,063 | | |
Total Liabilities and Shareholders’ Equity
|
| | | $ | 1,245,794 | | | | | $ | 675,299 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Interest income: | | | | | | | | | | | | | |
Loans, including fees
|
| | | $ | 41,087 | | | | | $ | 28,394 | | |
Investment securities and interest bearing deposits in banks
|
| | | | 2,661 | | | | | | 809 | | |
FHLB dividends
|
| | | | 356 | | | | | | 307 | | |
FRB dividends
|
| | | | 87 | | | | | | 90 | | |
Federal funds sold
|
| | | | 62 | | | | | | 25 | | |
Total interest income
|
| | | | 44,253 | | | | | | 29,625 | | |
Interest expense: | | | | | | | | | | | | | |
Deposits
|
| | | | 3,908 | | | | | | 3,074 | | |
Other borrowings
|
| | | | 404 | | | | | | — | | |
Total interest expense
|
| | | | 4,312 | | | | | | 3,074 | | |
Net interest income
|
| | | | 39,941 | | | | | | 26,551 | | |
Provision for loan losses
|
| | | | 462 | | | | | | 598 | | |
Net interest income after provision for loan losses
|
| | | | 39,479 | | | | | | 25,953 | | |
Non-interest income: | | | | | | | | | | | | | |
Gain on sale of loans
|
| | | | 2,173 | | | | | | — | | |
Service charges and other fees
|
| | | | 1,249 | | | | | | 607 | | |
Loan servicing and other loan fees
|
| | | | 566 | | | | | | 331 | | |
Gain on sale of OREO, net
|
| | | | 252 | | | | | | — | | |
Other income and fees
|
| | | | 554 | | | | | | 420 | | |
Total non-interest income
|
| | | | 4,794 | | | | | | 1,358 | | |
Non-interest expense: | | | | | | | | | | | | | |
Salaries and related benefits
|
| | | | 17,018 | | | | | | 10,611 | | |
Occupancy and equipment
|
| | | | 3,227 | | | | | | 2,147 | | |
Data processing
|
| | | | 4,735 | | | | | | 1,386 | | |
Other
|
| | | | 5,144 | | | | | | 2,819 | | |
Total non-interest expense
|
| | | | 30,124 | | | | | | 16,963 | | |
Income before provision for income taxes
|
| | | | 14,149 | | | | | | 10,348 | | |
Provision for income taxes
|
| | | | 8,889 | | | | | | 4,436 | | |
Net income
|
| | | $ | 5,260 | | | | | $ | 5,912 | | |
Earnings per common share: | | | | | | | | | | | | | |
Basic: Earnings per common share
|
| | | $ | 0.82 | | | | | $ | 1.10 | | |
Weighted average shares outstanding
|
| | | | 6,444,475 | | | | | | 5,392,597 | | |
Diluted: Earnings per common share
|
| | | $ | 0.81 | | | | | $ | 1.09 | | |
Weighted average shares outstanding
|
| | | | 6,485,094 | | | | | | 5,433,719 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Net income
|
| | | $ | 5,260 | | | | | $ | 5,912 | | |
Other comprehensive income (loss):
|
| | | | | | | | | | | | |
Unrealized holding gain (loss) on available-for-sale on investment securities, net of tax of $63 in 2017 and $24 in 2016
|
| | | | 89 | | | | | | (33) | | |
Other comprehensive (loss) income
|
| | | | 89 | | | | | | (33) | | |
Total comprehensive income
|
| | | $ | 5,349 | | | | | $ | 5,879 | | |
|
| | |
Number of
Shares |
| |
Common
Stock Amount |
| |
Additional
Paid in Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income/(loss) |
| |
Total
Shareholders’ Equity |
| ||||||||||||||||||
Balance, December 31, 2015
|
| | | | 5,493,209 | | | | | $ | 46,280 | | | | | $ | 287 | | | | | $ | 25,692 | | | | | $ | 121 | | | | | $ | 72,380 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | 5,912 | | | | | | | | | | | | 5,912 | | |
Other comprehensive loss, net
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (33) | | | | | | (33) | | |
Restricted stock granted
|
| | | | 12,794 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Termination of restricted stock
|
| | | | (2,000) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stock based compensation
|
| | | | | | | | | | 334 | | | | | | | | | | | | | | | | | | | | | | | | 334 | | |
Exercise of stock options
|
| | | | 38,331 | | | | | | 371 | | | | | | | | | | | | | | | | | | | | | | | | 371 | | |
Repurchase of shares
|
| | | | (69,908) | | | | | | (901) | | | | | | | | | | | | | | | | | | | | | | | | (901) | | |
Balance, December 31, 2016
|
| | | | 5,472,426 | | | | | | 46,084 | | | | | | 287 | | | | | | 31,604 | | | | | | 88 | | | | | | 78,063 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | 5,260 | | | | | | | | | | | | 5,260 | | |
Other comprehensive income, net
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 89 | | | | | | 89 | | |
Reclassification of stranded tax effects from change in tax rate
|
| | | | | | | | | | | | | | | | | | | | | | (36) | | | | | | 36 | | | | | | — | | |
Restricted stock granted
|
| | | | 28,500 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stock based compensation
|
| | | | | | | | | | 423 | | | | | | | | | | | | | | | | | | | | | | | | 423 | | |
Issuance of shares
|
| | | | 1,997,960 | | | | | | 34,824 | | | | | | | | | | | | | | | | | | | | | | | | 34,824 | | |
Repurchase of shares
|
| | | | (1,891) | | | | | | (24) | | | | | | | | | | | | | | | | | | | | | | | | (24) | | |
Balance, December 31, 2017
|
| | | | 7,496,995 | | | | | $ | 81,307 | | | | | $ | 287 | | | | | $ | 36,828 | | | | | $ | 213 | | | | | $ | 118,635 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 5,260 | | | | | $ | 5,912 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Decrease in deferred tax asset
|
| | | | 3,491 | | | | | | 1,699 | | |
Mark-to-market accretion on acquired loans
|
| | | | (3,000) | | | | | | (1,891) | | |
Gain on sale of loans
|
| | | | (2,173) | | | | | | — | | |
Proceeds from the sale of loans
|
| | | | 24,784 | | | | | | — | | |
Loans originated for sale
|
| | | | (25,558) | | | | | | — | | |
Mark-to-market accretion Trust Preferred
|
| | | | 40 | | | | | | — | | |
Change in cash surrender value of the life insurance policies
|
| | | | (231) | | | | | | (214) | | |
Provision for loan losses
|
| | | | 462 | | | | | | 598 | | |
Net (gain) or loss on sale of OREO
|
| | | | (252) | | | | | | 179 | | |
Amortization/accretion of premium/discount on investment securities
|
| | | | 369 | | | | | | 190 | | |
Depreciation and amortization
|
| | | | 762 | | | | | | 498 | | |
Core deposit intangible amortization
|
| | | | 850 | | | | | | 398 | | |
Stock based compensation
|
| | | | 423 | | | | | | 334 | | |
Deferred loan origination fees
|
| | | | 158 | | | | | | (30) | | |
Decrease (increase) in accrued interest receivable and other assets
|
| | | | 990 | | | | | | (212) | | |
Increase (decrease) in salary continuation liability
|
| | | | 126 | | | | | | (37) | | |
Increase (decrease) in accrued interest payable and other liabilities
|
| | | | 2,827 | | | | | | (1,106) | | |
Net cash provided by operating activities
|
| | | | 9,328 | | | | | | 6,318 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Maturity of interest bearing deposits in banks
|
| | | | 2,522 | | | | | | 1,690 | | |
Purchase of investment securities available for sale
|
| | | | (1,180) | | | | | | — | | |
Proceeds from the maturity and repayment of securities
|
| | | | 7,651 | | | | | | 9,564 | | |
Redemption (purchase) of Federal Home Loan Bank stock
|
| | | | 319 | | | | | | (151) | | |
Net decrease (increase) in loans
|
| | | | 295 | | | | | | (43,687) | | |
(Purchase) redemption of Federal Reserve Bank stock
|
| | | | (1,576) | | | | | | 75 | | |
Purchase of bank owned life insurance
|
| | | | (4,003) | | | | | | (8) | | |
Proceeds from sale of OREO
|
| | | | 1,754 | | | | | | — | | |
Purchase of premises and equipment
|
| | | | (368) | | | | | | (214) | | |
Net cash received from acquisition
|
| | | | 84,996 | | | | | | — | | |
Net cash provided by (used in) investing activities
|
| | | | 90,410 | | | | | | (32,731) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Net increase in demand, interest bearing and savings deposits
|
| | | | 7,812 | | | | | | 13,098 | | |
Increase in time deposits
|
| | | | 23,538 | | | | | | 34,357 | | |
Repurchase of common stock
|
| | | | (24) | | | | | | (901) | | |
Exercise of stock options
|
| | | | — | | | | | | 371 | | |
Increase in long-term borrowings
|
| | | | 6,000 | | | | | | — | | |
Decrease in short-term borrowings
|
| | | | (15,895) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 21,431 | | | | | | 46,925 | | |
Increase in cash and cash equivalents
|
| | | | 121,169 | | | | | | 20,512 | | |
Cash and cash equivalents at the beginning of the year
|
| | | | 128,684 | | | | | | 108,172 | | |
Cash and cash equivalents at end of the year
|
| | | $ | 249,853 | | | | | $ | 128,684 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year for: | | | | | | | | | | | | | |
Interest expense
|
| | | $ | 4,178 | | | | | $ | 3,055 | | |
Income tax, net of refunds
|
| | | | 3,838 | | | | | | 2,845 | | |
Non-cash investing activities: | | | | | | | | | | | | | |
Net change in unrealized gain on investment securities available-for sale
|
| | | $ | 125 | | | | | $ | (33) | | |
Transfers of loans to other real estate owned
|
| | | | 275 | | | | | | 954 | | |
Acquisitions: | | | | | | | | | | | | | |
Assets acquired, net of cash received
|
| | | $ | 444,826 | | | | | $ | — | | |
Liabilities assumed
|
| | | | 505,364 | | | | | | — | | |
Common stock issued
|
| | | | 34,824 | | | | | | — | | |
Goodwill
|
| | | | 10,365 | | | | | | — | | |
| | |
2017
|
| |
2016
|
| ||||||
Common Stock
|
| | | | 6,444,475 | | | | | | 5,392,597 | | |
Diluted effect of restricted stock grants
|
| | | | 40,619 | | | | | | 32,209 | | |
Diluted effect of stock options
|
| | | | — | | | | | | 8,913 | | |
Total weighted average diluted shares
|
| | | | 6,485,094 | | | | | | 5,433,719 | | |
|
| | |
FULB
Acquisition Date April 28, 2017 |
| |
Plaza
Acquisition Date November 3, 2017 |
| ||||||
Fair value of Assets: | | | | | | | | | | | | | |
Cash and due from Banks
|
| | | $ | 27,992 | | | | | $ | 1,124 | | |
Federal funds sold
|
| | | | 75,037 | | | | | | — | | |
Total cash and cash equivalents
|
| | | | 103,029 | | | | | | 1,124 | | |
Investment securities
|
| | | | 30,241 | | | | | | 5,772 | | |
FHLB stock
|
| | | | 2,087 | | | | | | 493 | | |
Loans
|
| | | | 315,970 | | | | | | 65,366 | | |
Core deposit intangible
|
| | | | 4,435 | | | | | | 385 | | |
Deferred tax asset, including refunds
|
| | | | (164) | | | | | | 2,070 | | |
Servicing asset
|
| | | | 1,282 | | | | | | — | | |
BOLI
|
| | | | 6,428 | | | | | | — | | |
Other assets
|
| | | | 9,831 | | | | | | 630 | | |
Total assets acquired
|
| | | | 473,139 | | | | | | 75,840 | | |
Liabilities: | | | | | | | | | | | | | |
Deposits
|
| | | | | | | | | | | | |
Noninterest bearing
|
| | | | 152,842 | | | | | | 17,256 | | |
Interest bearing
|
| | | | 275,175 | | | | | | 36,923 | | |
Total deposits
|
| | | | 428,017 | | | | | | 54,179 | | |
Salary continuation plan
|
| | | | 764 | | | | | | — | | |
Other borrowings
|
| | | | 10,775 | | | | | | 10,467 | | |
Other liabilities
|
| | | | 812 | | | | | | 350 | | |
Total liabilities assumed
|
| | | | 440,368 | | | | | | 64,996 | | |
Stock issued
|
| | | | 22,860 | | | | | | 11,964 | | |
Cash consideration
|
| | | | 19,037 | | | | | | 119 | | |
Goodwill
|
| | | $ | 9,126 | | | | | $ | 1,239 | | |
|
| | |
FULB
Acquisition Date April 28, 2017 |
| |
Plaza
Acquisition Date November 3, 2017 |
| ||||||
Book value of net assets acquired
|
| | | $ | 29,321 | | | | | $ | 8,107 | | |
Fair value adjustments: | | | | | | | | | | | | | |
Loans
|
| | | | 636 | | | | | | 386 | | |
Write-down on real estate investment
|
| | | | (262) | | | | | | — | | |
Time-deposits
|
| | | | — | | | | | | (74) | | |
Other borrowings
|
| | | | — | | | | | | (30) | | |
Trust preferred securities
|
| | | | 1,045 | | | | | | — | | |
Core deposit intangible
|
| | | | 4,435 | | | | | | 385 | | |
Deferred tax assets
|
| | | | (2,404) | | | | | | 2,070 | | |
Total purchase accounting adjustments
|
| | | | 3,450 | | | | | | 2,737 | | |
Fair value of net assets acquired
|
| | | | 32,771 | | | | | | 10,844 | | |
Common stock issued
|
| | | | 22,860 | | | | | | 11,964 | | |
Cash paid
|
| | | | 19,037 | | | | | | 119 | | |
Total price paid
|
| | | | 41,897 | | | | | | 12,083 | | |
Goodwill
|
| | | $ | 9,126 | | | | | $ | 1,239 | | |
|
| | |
Credit-impaired
loans |
| |
Non-credit
impaired loans |
| |
Total
|
| |||||||||
Contractually required payments
|
| | | $ | 8,577 | | | | | $ | 379,144 | | | | | $ | 387,721 | | |
Less: nonaccretable difference
|
| | | | (966) | | | | | | — | | | | | | (966) | | |
Cash flows expected to be collected (undiscounted)
|
| | | | 7,611 | | | | | | 379,144 | | | | | | 386,755 | | |
Accretable yield
|
| | | | (322) | | | | | | (5,097) | | | | | | (5,419) | | |
Fair value of purchased loans
|
| | | $ | 7,289 | | | | | $ | 374,047 | | | | | $ | 381,336 | | |
|
| | |
Proforma
2017 |
| |
Proforma
2016 |
| ||||||
Net interest income
|
| | | $ | 47,656 | | | | | $ | 44,635 | | |
Net income
|
| | | | 4,387 | | | | | | 9,380 | | |
Basic earnings per share
|
| | | $ | 0.59 | | | | | $ | 1.27 | | |
Diluted earnings per share
|
| | | $ | 0.59 | | | | | $ | 1.26 | | |
| | |
FULB
|
| |
Plaza
|
| |
Total
|
| |||||||||
Acquisition related expenses in 2017 | | | | | | | | | | | | | | | | | | | |
Professional fees
|
| | | $ | 349 | | | | | $ | 225 | | | | | $ | 574 | | |
Data processing
|
| | | | 1,586 | | | | | | 855 | | | | | | 2,441 | | |
Severance expense
|
| | | | 212 | | | | | | 75 | | | | | | 287 | | |
Other
|
| | | | 120 | | | | | | 54 | | | | | | 174 | | |
Total
|
| | | $ | 2,267 | | | | | $ | 1,209 | | | | | $ | 3,476 | | |
|
2017
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gain |
| |
Gross
Unrealized Loss |
| |
Estimated
Fair Value |
|||||||||||
Municipal securities
|
| | | $ | 15,910 | | | | | $ | 182 | | | | | $ | (45) | | | | | $ | 16,047 |
Mortgage-backed securities
|
| | | | 9,621 | | | | | | 143 | | | | | | (24) | | | | | | 9,740 |
Collateralized mortgage obligations
|
| | | | 1,758 | | | | | | 1 | | | | | | (9) | | | | | | 1,750 |
U.S. Government Agencies
|
| | | | 6,984 | | | | | | — | | | | | | (13) | | | | | | 6,971 |
SBA securities
|
| | | | 5,929 | | | | | | 78 | | | | | | (10) | | | | | | 5,997 |
Total investment securities
|
| | | $ | 40,202 | | | | | $ | 404 | | | | | $ | (101) | | | | | $ | 40,505 |
|
2016
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gain |
| |
Gross
Unrealized Loss |
| |
Estimated
Fair Value |
|||||||||||
Municipal securities
|
| | | $ | 4,003 | | | | | $ | 82 | | | | | $ | (4) | | | | | $ | 4,081 |
Mortgage-backed securities
|
| | | | 1,666 | | | | | | 18 | | | | | | — | | | | | | 1,684 |
Collateralized mortgage obligations
|
| | | | 1,732 | | | | | | 38 | | | | | | — | | | | | | 1,770 |
U.S. Government Agencies
|
| | | | 5,358 | | | | | | 19 | | | | | | — | | | | | | 5,377 |
U.S. Treasury
|
| | | | 1,008 | | | | | | — | | | | | | (2) | | | | | | 1,006 |
Total investment securities
|
| | | $ | 13,767 | | | | | $ | 157 | | | | | $ | (6) | | | | | $ | 13,918 |
|
| | |
Less than 12 Months
|
| |
12 Months or more
|
| |
Total
|
| |||||||||||||||||||||||||||
2017
|
| |
Estimated
Fair Value |
| |
Unrealized
Loss |
| |
Estimated
Fair Value |
| |
Unrealized
Loss |
| |
Estimated
Fair Value |
| |
Unrealized
Loss |
| ||||||||||||||||||
Municipal securities
|
| | | $ | 4,011 | | | | | $ | (39) | | | | | $ | 267 | | | | | $ | (6) | | | | | $ | 4,278 | | | | | $ | (45) | | |
Mortgage-backed securities
|
| | | | 4,075 | | | | | | (24) | | | | | | — | | | | | | — | | | | | | 4,075 | | | | | | (24) | | |
Collateralized mortgage obligations
|
| | | | 1,201 | | | | | | (9) | | | | | | — | | | | | | — | | | | | | 1,201 | | | | | | (9) | | |
U.S. Government Agencies
|
| | | | 6,981 | | | | | | (13) | | | | | | — | | | | | | — | | | | | | 6,981 | | | | | | (13) | | |
SBA securities
|
| | | | 1,245 | | | | | | (10) | | | | | | — | | | | | | — | | | | | | 1,245 | | | | | | (10) | | |
Total
|
| | | $ | 17,513 | | | | | $ | (95) | | | | | $ | 267 | | | | | $ | (6) | | | | | $ | 17,780 | | | | | $ | (101) | | |
|
| | |
Less than 12 Months
|
| |
12 Months or more
|
| |
Total
|
| |||||||||||||||||||||||||||
2016
|
| |
Estimated
Fair Value |
| |
Unrealized
Loss |
| |
Estimated
Fair Value |
| |
Unrealized
Loss |
| |
Estimated
Fair Value |
| |
Unrealized
Loss |
| ||||||||||||||||||
Municipal securities
|
| | | $ | 515 | | | | | $ | (1) | | | | | $ | 844 | | | | | $ | (3) | | | | | $ | 1,358 | | | | | $ | (4) | | |
Mortgage-backed securities
|
| | | | 508 | | | | | | — | | | | | | 66 | | | | | | — | | | | | | 574 | | | | | | — | | |
Collateralized mortgage obligations
|
| | | | — | | | | | | — | | | | | | 117 | | | | | | — | | | | | | 117 | | | | | | — | | |
U.S. Government Agencies
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
U.S. Treasury
|
| | | | 1,006 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | 1,006 | | | | | | (2) | | |
Total
|
| | | $ | 2,029 | | | | | $ | (3) | | | | | $ | 1,027 | | | | | $ | (3) | | | | | $ | 3,055 | | | | | $ | (6) | | |
|
| | |
2017
|
| |
2016
|
|||||||||||||||||
| | |
Amortized
Cost |
| |
Estimated
Fair Value |
| |
Amortized
Cost |
| |
Estimated
Fair Value |
|||||||||||
Due in one year or less
|
| | | $ | 5,248 | | | | | $ | 5,243 | | | | | $ | 3,745 | | | | | $ | 3,740 |
Due after one year through five years
|
| | | | 4,987 | | | | | | 4,959 | | | | | | 4,662 | | | | | | 4,690 |
Due after five year through ten years
|
| | | | 14,619 | | | | | | 14,737 | | | | | | 4,920 | | | | | | 5,040 |
Due after ten years
|
| | | | 15,348 | | | | | | 15,566 | | | | | | 440 | | | | | | 448 |
Total
|
| | | $ | 40,202 | | | | | $ | 40,505 | | | | | $ | 13,767 | | | | | $ | 13,918 |
|
| | |
2017
|
| |
2016
|
| ||||||
Commercial and industrial
|
| | | $ | 114,373 | | | | | $ | 71,093 | | |
Construction and land
|
| | | | 22,720 | | | | | | 19,745 | | |
Commercial real estate
|
| | | | 671,823 | | | | | | 384,278 | | |
Residential real estate
|
| | | | 84,781 | | | | | | 31,917 | | |
Consumer
|
| | | | 1,096 | | | | | | 1,317 | | |
Total loans
|
| | | | 894,793 | | | | | | 508,350 | | |
Deferred loan fees and costs, net
|
| | | | (469) | | | | | | (311) | | |
Allowance for loan losses
|
| | | | (4,215) | | | | | | (3,775) | | |
Net loans
|
| | | $ | 890,109 | | | | | $ | 504,264 | | |
|
| | |
Recorded
Investment |
| |
Unpaid
Principal Balance |
| |
Related
Allowance |
| |
Average
Recorded Investment |
| |
Interest
Income Recognized |
| |||||||||||||||
2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate
|
| | | | 1,120 | | | | | | 1,228 | | | | | | — | | | | | | 1,147 | | | | | | 56 | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
With an allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate
|
| | | | 13 | | | | | | 13 | | | | | | 13 | | | | | | 13 | | | | | | 2 | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 1,133 | | | | | $ | 1,241 | | | | | $ | 13 | | | | | $ | 1,160 | | | | | $ | 58 | | |
2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | $ | 230 | | | | | $ | 230 | | | | | $ | — | | | | | $ | 230 | | | | | $ | — | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate
|
| | | | 632 | | | | | | 632 | | | | | | — | | | | | | 653 | | | | | | — | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
With an allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | | 228 | | | | | | 228 | | | | | | 46 | | | | | | 243 | | | | | | — | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 1,090 | | | | | $ | 1,090 | | | | | $ | 46 | | | | | $ | 1,126 | | | | | $ | — | | |
|
2017
|
| |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| |
Total
|
| |||||||||||||||
Commercial and industrial
|
| | | $ | 112,650 | | | | | $ | 807 | | | | | $ | 916 | | | | | $ | — | | | | | $ | 114,373 | | |
Construction and land
|
| | | | 19,833 | | | | | | — | | | | | | 2,887 | | | | | | — | | | | | | 22,720 | | |
Commercial real estate
|
| | | | 664,551 | | | | | | 4,058 | | | | | | 3,214 | | | | | | — | | | | | | 671,823 | | |
Residential real estate
|
| | | | 84,781 | | | | | | — | | | | | | — | | | | | | — | | | | | | 84,781 | | |
Consumer
|
| | | | 1,096 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,096 | | |
Total
|
| | | $ | 882,911 | | | | | $ | 4,865 | | | | | $ | 7,017 | | | | | $ | — | | | | | $ | 894,793 | | |
|
2016
|
| |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| |
Total
|
| |||||||||||||||
Commercial and industrial
|
| | | $ | 68,720 | | | | | $ | 311 | | | | | $ | 1,832 | | | | | $ | 230 | | | | | $ | 71,093 | | |
Construction and land
|
| | | | 16,808 | | | | | | — | | | | | | 2,937 | | | | | | — | | | | | | 19,745 | | |
Commercial real estate
|
| | | | 379,073 | | | | | | 2,603 | | | | | | 2,602 | | | | | | — | | | | | | 384,278 | | |
Residential real estate
|
| | | | 31,917 | | | | | | — | | | | | | — | | | | | | — | | | | | | 31,917 | | |
Consumer
|
| | | | 1,317 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,317 | | |
Total
|
| | | $ | 497,835 | | | | | $ | 2,914 | | | | | $ | 7,371 | | | | | $ | 230 | | | | | $ | 508,350 | | |
|
| | |
30 – 59 Days
Past Due |
| |
60 – 89 Days
Past Due |
| |
Greater
Than 90 Days |
| |
Total Past
Due |
| |
Current
|
| |
PCI Loans
|
| |
Total Loans
Receivable |
| |
Recorded
Investment > 90 Days and Accruing |
| ||||||||||||||||||||||||
2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | $ | 96 | | | | | $ | — | | | | | $ | — | | | | | $ | 96 | | | | | $ | 114,274 | | | | | $ | 3 | | | | | $ | 114,373 | | | | | $ | — | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,720 | | | | | | — | | | | | | 22,720 | | | | | | — | | |
Commercial real estate
|
| | | | 1,446 | | | | | | — | | | | | | — | | | | | | 1,446 | | | | | | 657,360 | | | | | | 13,017 | | | | | | 671,823 | | | | | | — | | |
Residential
|
| | | | 349 | | | | | | — | | | | | | — | | | | | | 349 | | | | | | 83,137 | | | | | | 1,295 | | | | | | 84,781 | | | | | | — | | |
Consumer
|
| | | | 3 | | | | | | — | | | | | | — | | | | | | 3 | | | | | | 1,093 | | | | | | — | | | | | | 1,096 | | | | | | — | | |
Total
|
| | | $ | 1,894 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,894 | | | | | $ | 878,584 | | | | | $ | 14,315 | | | | | $ | 894,793 | | | | | $ | — | | |
2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | $ | — | | | | | $ | — | | | | | $ | 230 | | | | | $ | 230 | | | | | $ | 70,756 | | | | | $ | 107 | | | | | $ | 71,093 | | | | | $ | — | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,745 | | | | | | — | | | | | | 19,745 | | | | | | — | | |
Commercial real estate
|
| | | | 625 | | | | | | — | | | | | | — | | | | | | 625 | | | | | | 377,772 | | | | | | 5,881 | | | | | | 384,278 | | | | | | — | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,498 | | | | | | 1,419 | | | | | | 31,917 | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,317 | | | | | | — | | | | | | 1,317 | | | | | | — | | |
Total
|
| | | $ | 625 | | | | | $ | — | | | | | $ | 230 | | | | | $ | 855 | | | | | $ | 500,088 | | | | | $ | 7,407 | | | | | $ | 508,350 | | | | | $ | — | | |
|
2017
|
| |
Number of
Loans |
| |
Rate
Modification |
| |
Term
Modification |
| |
Interest Only
Modification |
| |
Rate & Term
Modification |
| |
Total
|
| ||||||||||||||||||
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | | 1 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 13 | | | | | $ | 13 | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate
|
| | | | 3 | | | | | | — | | | | | | 238 | | | | | | — | | | | | | 794 | | | | | | 1,032 | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 4 | | | | | $ | — | | | | | $ | 238 | | | | | $ | — | | | | | $ | 807 | | | | | $ | 1,045 | | |
|
2017
|
| |
Number of
Loans |
| |
Pre-Modification
Outstanding Recorded Investment |
| |
Post-Modification
Outstanding Recorded Investment |
| |
Reserve
Difference(1) |
| ||||||||||||
Commercial and Industrial
|
| | | | 1 | | | | | $ | 13 | | | | | $ | 13 | | | | | $ | — | | |
Construction and land
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate
|
| | | | 3 | | | | | | 1,032 | | | | | | 1,032 | | | | | | — | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | 4 | | | | | $ | 1,045 | | | | | $ | 1,045 | | | | | $ | — | | |
|
| | |
December 31, 2017
|
| |
December 31, 2016
|
| ||||||||||||||||||
| | |
Unpaid
Principal Balance |
| |
Carrying
Value |
| |
Unpaid
Principal Balance |
| |
Carrying
Value |
| ||||||||||||
Real estate secured
|
| | | $ | 17,268 | | | | | $ | 14,313 | | | | | $ | 10,341 | | | | | $ | 7,300 | | |
Commercial and industrial
|
| | | | 149 | | | | | | 2 | | | | | | 309 | | | | | | 107 | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total purchase credit impaired loans
|
| | | $ | 17,417 | | | | | $ | 14,315 | | | | | $ | 10,650 | | | | | $ | 7,407 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Contractually required payments
|
| | | $ | 17,417 | | | | | $ | 10,650 | | |
Less: non-accretable difference
|
| | | | (2,730) | | | | | | (2,932) | | |
Cash flows expected to be collected (undiscounted)
|
| | | | 14,687 | | | | | | 7,718 | | |
Accretable Yield
|
| | | | (372) | | | | | | (311) | | |
Carrying Amount
|
| | | $ | 14,315 | | | | | $ | 7,407 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Balance at beginning of period
|
| | | $ | 311 | | | | | $ | 2,744 | | |
Additions
|
| | | | 1,422 | | | | | | — | | |
Removals
|
| | | | — | | | | | | (365) | | |
Accretion
|
| | | | (1,361) | | | | | | (2,068) | | |
Balance at end of period
|
| | | $ | 372 | | | | | $ | 311 | | |
|
2017
|
| |
Commercial
and Industrial |
| |
Construction
and Land |
| |
Commercial
Real Estate |
| |
Residential
|
| |
Consumer
|
| |
Unallocated
|
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 1,011 | | | | | $ | 287 | | | | | $ | 2,105 | | | | | $ | 151 | | | | | $ | 4 | | | | | $ | 217 | | | | | $ | 3,775 | | |
Charge-offs
|
| | | | (63) | | | | | | — | | | | | | (3) | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (67) | | |
Recoveries
|
| | | | 45 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45 | | |
Provision
|
| | | | (152) | | | | | | (88) | | | | | | 593 | | | | | | (1) | | | | | | — | | | | | | 110 | | | | | | 462 | | |
Ending balance
|
| | | $ | 841 | | | | | $ | 199 | | | | | $ | 2,695 | | | | | $ | 150 | | | | | $ | 3 | | | | | $ | 327 | | | | | $ | 4,215 | | |
Allowance for loan loss related to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment
|
| | | $ | 13 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 13 | | |
Loans collectively evaluated for impairment
|
| | | | 828 | | | | | | 199 | | | | | | 2,695 | | | | | | 150 | | | | | | 3 | | | | | | 327 | | | | | | 4,202 | | |
PCI loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance of loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | | 13 | | | | | | — | | | | | | 1,120 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,133 | | |
Collectively evaluated for impairment
|
| | | | 114,357 | | | | | | 22,720 | | | | | | 657,686 | | | | | | 83,486 | | | | | | 1,096 | | | | | | — | | | | | | 879,345 | | |
PCI loans
|
| | | | 3 | | | | | | — | | | | | | 13,017 | | | | | | 1,295 | | | | | | — | | | | | | — | | | | | | 14,315 | | |
Balance of loans collectively evaluated for impairment
|
| | | | 114,360 | | | | | | 22,720 | | | | | | 670,703 | | | | | | 84,781 | | | | | | 1,096 | | | | | | — | | | | | | 893,660 | | |
Total
|
| | | $ | 114,373 | | | | | $ | 22,720 | | | | | $ | 671,823 | | | | | $ | 84,781 | | | | | $ | 1,096 | | | | | $ | — | | | | | $ | 894,793 | | |
|
2016
|
| |
Commercial
and Industrial |
| |
Construction
and Land |
| |
Commercial
Real Estate |
| |
Residential
|
| |
Consumer
|
| |
Unallocated
|
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 1,418 | | | | | $ | 212 | | | | | $ | 1,735 | | | | | $ | 131 | | | | | $ | 3 | | | | | $ | 351 | | | | | $ | 3,850 | | |
Charge-offs
|
| | | | (491) | | | | | | — | | | | | | (250) | | | | | | — | | | | | | — | | | | | | — | | | | | | (741) | | |
Recoveries
|
| | | | 55 | | | | | | — | | | | | | — | | | | | | — | | | | | | 12 | | | | | | — | | | | | | 67 | | |
Provision
|
| | | | 29 | | | | | | 75 | | | | | | 620 | | | | | | 20 | | | | | | (11) | | | | | | (134) | | | | | | 599 | | |
Ending balance
|
| | | $ | 1,011 | | | | | $ | 287 | | | | | $ | 2,105 | | | | | $ | 151 | | | | | $ | 4 | | | | | $ | 217 | | | | | $ | 3,775 | | |
Allowance for loan loss related to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment
|
| | | $ | 46 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 46 | | |
Loans collectively evaluated for impairment
|
| | | | 965 | | | | | | 287 | | | | | | 2,105 | | | | | | 151 | | | | | | 4 | | | | | | 217 | | | | | | 3,729 | | |
PCI loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance of loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | | 458 | | | | | | — | | | | | | 632 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,090 | | |
Collectively evaluated for impairment
|
| | | | 70,528 | | | | | | 19,745 | | | | | | 377,765 | | | | | | 30,498 | | | | | | 1,317 | | | | | | — | | | | | | 499,853 | | |
PCI loans
|
| | | | 107 | | | | | | — | | | | | | 5,881 | | | | | | 1,419 | | | | | | — | | | | | | — | | | | | | 7,407 | | |
Balance of loans collectively evaluated for impairment
|
| | | | 70,635 | | | | | | 19,745 | | | | | | 383,646 | | | | | | 31,917 | | | | | | 1,317 | | | | | | — | | | | | | 507,260 | | |
Total
|
| | | $ | 71,093 | | | | | $ | 19,745 | | | | | $ | 384,278 | | | | | $ | 31,917 | | | | | $ | 1,317 | | | | | $ | — | | | | | $ | 508,350 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Premises Owned
|
| | | $ | 7,276 | | | | | $ | — | | |
Furniture, fixtures and equipment
|
| | | | 2,939 | | | | | | 2,280 | | |
Leasehold improvements
|
| | | | 1,271 | | | | | | 1,172 | | |
Less accumulated depreciation and amortization
|
| | | | (3,087) | | | | | | (2,346) | | |
Total premises and equipment, net
|
| | | $ | 8,399 | | | | | $ | 1,106 | | |
|
| Year Ending December 31, | | | | | | | |
|
2018
|
| | | $ | 1,899 | | |
|
2019
|
| | | | 1,781 | | |
|
2020
|
| | | | 1,427 | | |
|
2021
|
| | | | 1,087 | | |
|
2022
|
| | | | 946 | | |
|
Thereafter
|
| | | | 1,018 | | |
|
Total
|
| | | $ | 8,158 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Commercial real estate
|
| | | $ | — | | | | | $ | 954 | | |
Valuation allowance
|
| | | | — | | | | | | (179) | | |
Total
|
| | | $ | — | | | | | $ | 775 | | |
|
| | |
2017
|
| |
2016
|
|||||
Beginning of the year
|
| | | $ | — | | | | | $ | — |
Acquired goodwill
|
| | | | 10,365 | | | | | | — |
Impairment
|
| | | | — | | | | | | — |
End of year
|
| | | $ | 10,365 | | | | | $ | — |
|
| | |
2017
|
| |
2016
|
| ||||||
Core deposit intangible
|
| | | $ | 802 | | | | | $ | 1,200 | | |
Additions
|
| | | | 4,820 | | | | | | — | | |
Less accumulated amortization
|
| | | | (850) | | | | | | (398) | | |
Net core deposit intangibles
|
| | | $ | 4,772 | | | | | $ | 802 | | |
|
| Year Ending December 31, | | | | | | | |
|
2018
|
| | | $ | 1,157 | | |
|
2019
|
| | | | 1,145 | | |
|
2020
|
| | | | 991 | | |
|
2021
|
| | | | 977 | | |
|
2022
|
| | | | 325 | | |
|
Thereafter
|
| | | | 177 | | |
|
Total
|
| | | $ | 4,772 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Deferred tax assets
|
| | | $ | 6,519 | | | | | $ | 10,004 | | |
Accrued interest receivable
|
| | | | 3,002 | | | | | | 1,481 | | |
SBA servicing asset
|
| | | | 1,270 | | | | | | 470 | | |
Investment in SBJ Fund, LP
|
| | | | 799 | | | | | | 555 | | |
Investment in statutory trust
|
| | | | 296 | | | | | | — | | |
All other
|
| | | | 3,271 | | | | | | 1,318 | | |
| | | | $ | 15,157 | | | | | $ | 13,828 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Demand deposits
|
| | | $ | 327,309 | | | | | $ | 128,697 | | |
NOW accounts and Savings
|
| | | | 191,550 | | | | | | 53,186 | | |
Money market
|
| | | | 356,640 | | | | | | 247,732 | | |
CDAR’s
|
| | | | 51,275 | | | | | | 7,537 | | |
Time under $250,000
|
| | | | 74,996 | | | | | | 73,271 | | |
Time $250,000 and over
|
| | | | 102,535 | | | | | | 80,336 | | |
Total deposits
|
| | | $ | 1,104,305 | | | | | $ | 590,759 | | |
|
| Year Ending December 31, | | | | | | | |
|
2018
|
| | | $ | 170,306 | | |
|
2019
|
| | | | 39,441 | | |
|
2020
|
| | | | 4,733 | | |
|
2021
|
| | | | 3,152 | | |
|
2022
|
| | | | 11,174 | | |
| | | | | $ | 228,806 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
NOW accounts and savings
|
| | | $ | 148 | | | | | $ | 98 | | |
Money market
|
| | | | 1,703 | | | | | | 1,102 | | |
Time under $250,000
|
| | | | 1,137 | | | | | | 1,114 | | |
Time $250,000 and over
|
| | | | 920 | | | | | | 760 | | |
Total
|
| | | $ | 3,908 | | | | | $ | 3,074 | | |
|
| Year Ending December 31, | | | | | | | |
|
2018
|
| | | $ | 300 | | |
|
2019
|
| | | | 600 | | |
|
2020
|
| | | | 600 | | |
|
2021
|
| | | | 600 | | |
|
2022
|
| | | | 3,900 | | |
|
Total
|
| | | $ | 6,000 | | |
|
| | |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
Federal
|
| |
State
|
| |
Federal
|
| |
State
|
| ||||||||||||
Current income taxes
|
| | | $ | 4,164 | | | | | $ | 1,234 | | | | | $ | 2,060 | | | | | $ | 677 | | |
Deferred tax asset adjustment for enacted change in tax rate
|
| | | | 2,681 | | | | | | — | | | | | | — | | | | | | — | | |
Deferred income taxes, net
|
| | | | 437 | | | | | | 373 | | | | | | 1,222 | | | | | | 477 | | |
Total provision for income taxes
|
| | | $ | 7,282 | | | | | $ | 1,607 | | | | | $ | 3,282 | | | | | $ | 1,154 | | |
|
| | |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
Amount
|
| |
Rate %
|
| |
Amount
|
| |
Rate %
|
| ||||||||||||
Federal statutory tax rate
|
| | | $ | 4,811 | | | | | | 34.00% | | | | | $ | 3,518 | | | | | | 34.00% | | |
State statutory tax rate, net of Federal effective tax rate
|
| | | | 1,061 | | | | | | 7.50% | | | | | | 727 | | | | | | 7.02% | | |
Tax exempt interest
|
| | | | (77) | | | | | | -0.54% | | | | | | (13) | | | | | | -0.13% | | |
Bank owned life insurance
|
| | | | (79) | | | | | | -0.56% | | | | | | (73) | | | | | | -0.70% | | |
Tax impact from enacted change in tax rate
|
| | | | 2,681 | | | | | | 18.95% | | | | | | — | | | | | | 0.00% | | |
Acquisition expenses
|
| | | | 179 | | | | | | 1.26% | | | | | | — | | | | | | 0.00% | | |
Other
|
| | | | 313 | | | | | | 2.21% | | | | | | 277 | | | | | | 2.68% | | |
Total income tax expense
|
| | | $ | 8,889 | | | | | | 62.82% | | | | | $ | 4,436 | | | | | | 42.87% | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Net operating loss carryforward
|
| | | $ | 3,935 | | | | | $ | 4,573 | | |
Mark to market adjustments
|
| | | | 515 | | | | | | 2,000 | | |
Salary continuation plan
|
| | | | 1,178 | | | | | | 1,299 | | |
Allowance for loan losses
|
| | | | 879 | | | | | | 1,554 | | |
Amortization of start up costs
|
| | | | 221 | | | | | | 206 | | |
Other
|
| | | | 196 | | | | | | 285 | | |
Stock based compensation
|
| | | | 279 | | | | | | 973 | | |
Deferred tax assets
|
| | | | 7,203 | | | | | | 10,890 | | |
Depreciation
|
| | | | (3) | | | | | | (84) | | |
FHLB stock dividend
|
| | | | (193) | | | | | | (117) | | |
Unrealized gain on AFS securities
|
| | | | (88) | | | | | | (26) | | |
Other
|
| | | | (370) | | | | | | (194) | | |
Stock based compensation
|
| | | | (30) | | | | | | (465) | | |
Deferred tax liability
|
| | | | (684) | | | | | | (886) | | |
Total deferred tax assets, net
|
| | | $ | 6,519 | | | | | $ | 10,004 | | |
|
| | |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
Number of
Shares |
| |
Weighted
Average Grant Date Fair Value |
| |
Number of
Shares |
| |
Weighted
Average Grant Date Fair Value |
| ||||||||||||
Unvested shares at beginning of the year
|
| | | | 68,605 | | | | | $ | 11.51 | | | | | | 84,877 | | | | | $ | 11.09 | | |
Granted
|
| | | | 28,500 | | | | | | 15.94 | | | | | | 12,794 | | | | | | 13.25 | | |
Vested
|
| | | | (29,624) | | | | | | 11.23 | | | | | | (27,066) | | | | | | 11.04 | | |
Forfeited/expired
|
| | | | — | | | | | | — | | | | | | (2,000) | | | | | | 10.96 | | |
Unvested shares at end of the year
|
| | | | 67,481 | | | | | $ | 13.51 | | | | | | 68,605 | | | | | $ | 11.51 | | |
|
| | |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
Number of
Shares |
| |
Weighted
Average Exercise Price |
| |
Number of
Shares |
| |
Weighted
Average Exercise Price |
| ||||||||||||
Balance at beginning of the year
|
| | | | — | | | | | $ | — | | | | | | 52,988 | | | | | $ | 9.77 | | |
Granted
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Exercised
|
| | | | — | | | | | | — | | | | | | (38,331) | | | | | | 9.68 | | |
Expired
|
| | | | — | | | | | | — | | | | | | (14,657) | | | | | | 10.00 | | |
Balance at end of the year
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | | — | | |
|
| | |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
Dollars
|
| |
Ratio
|
| |
Dollars
|
| |
Ratio
|
| ||||||||||||
Leverage Ratio | | | | | | | | | | | | | | | | | | | | | | | | | |
BayCom Corp
|
| | | $ | 107,153 | | | | | | 8.73% | | | | | | NA | | | | | | NA | | |
Minimum requirement for “Well-Capitalized”
|
| | | | 61,396 | | | | | | 5.00% | | | | | | NA | | | | | | NA | | |
Minimum regulatory requirement
|
| | | | 49,117 | | | | | | 4.00% | | | | | | NA | | | | | | NA | | |
United Business Bank
|
| | | $ | 111,143 | | | | | | 8.92% | | | | | $ | 72,937 | | | | | | 10.59% | | |
Minimum requirement for “Well-Capitalized”
|
| | | | 62,279 | | | | | | 5.00% | | | | | | 34,327 | | | | | | 5.00% | | |
Minimum regulatory requirement
|
| | | | 49,823 | | | | | | 4.00% | | | | | | 27,461 | | | | | | 4.00% | | |
Common Equity Tier 1 Ratio | | | | | | | | | | | | | | | | | | | | | | | | | |
BayCom Corp
|
| | | $ | 100,761 | | | | | | 11.43% | | | | | | NA | | | | | | NA | | |
Minimum requirement for “Well-Capitalized”
|
| | | | 57,285 | | | | | | 6.50% | | | | | | NA | | | | | | NA | | |
Minimum regulatory requirement
|
| | | | 39,659 | | | | | | 4.50% | | | | | | NA | | | | | | NA | | |
United Business Bank
|
| | | $ | 111,143 | | | | | | 12.43% | | | | | $ | 72,937 | | | | | | 13.43% | | |
Minimum requirement for “Well-Capitalized”
|
| | | | 58,109 | | | | | | 6.50% | | | | | | 35,298 | | | | | | 6.50% | | |
Minimum regulatory requirement
|
| | | | 40,229 | | | | | | 4.50% | | | | | | 24,437 | | | | | | 4.50% | | |
Tier 1 Risk-Based Capital Ratio | | | | | | | | | | | | | | | | | | | | | | | | | |
BayCom Corp
|
| | | $ | 107,153 | | | | | | 12.16% | | | | | | NA | | | | | | NA | | |
Minimum requirement for “Well-Capitalized”
|
| | | | 70,504 | | | | | | 8.00% | | | | | | NA | | | | | | NA | | |
Minimum regulatory requirement
|
| | | | 52,878 | | | | | | 6.00% | | | | | | NA | | | | | | NA | | |
United Business Bank
|
| | | $ | 111,143 | | | | | | 12.43% | | | | | $ | 72,937 | | | | | | 13.43% | | |
Minimum requirement for “Well-Capitalized”
|
| | | | 71,519 | | | | | | 8.00% | | | | | | 43,444 | | | | | | 8.00% | | |
Minimum regulatory requirement
|
| | | | 53,639 | | | | | | 6.00% | | | | | | 32,583 | | | | | | 6.00% | | |
Total Risk-Based Capital Ratio | | | | | | | | | | | | | | | | | | | | | | | | | |
BayCom Corp
|
| | | $ | 111,678 | | | | | | 12.67% | | | | | | NA | | | | | | NA | | |
Minimum requirement for “Well-Capitalized”
|
| | | | 88,133 | | | | | | 10.00% | | | | | | NA | | | | | | NA | | |
Minimum regulatory requirement
|
| | | | 70,504 | | | | | | 8.00% | | | | | | NA | | | | | | NA | | |
United Business Bank
|
| | | $ | 115,668 | | | | | | 12.94% | | | | | $ | 76,992 | | | | | | 14.18% | | |
Minimum requirement for “Well-Capitalized”
|
| | | | 89,399 | | | | | | 10.00% | | | | | | 54,305 | | | | | | 10.00% | | |
Minimum regulatory requirement
|
| | | | 71,519 | | | | | | 8.00% | | | | | | 43,444 | | | | | | 8.00% | | |
| | |
2017
|
| |
2016
|
| ||||||
Balance, beginning
|
| | | $ | 9,862 | | | | | $ | 9,378 | | |
Disbursements
|
| | | | 1,488 | | | | | | 1,069 | | |
Amounts repaid
|
| | | | (6,791) | | | | | | (585) | | |
Balance, ending
|
| | | $ | 4,559 | | | | | $ | 9,862 | | |
Undisbursed commitments to related parties
|
| | | $ | 7,187 | | | | | $ | 500 | | |
Letters of credit issued for related parties
|
| | | $ | — | | | | | $ | — | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Professional fees
|
| | | $ | 1,217 | | | | | $ | 700 | | |
Core deposit premium amortization
|
| | | | 850 | | | | | | 398 | | |
Marketing and promotions
|
| | | | 601 | | | | | | 269 | | |
Stationery and supplies
|
| | | | 585 | | | | | | 289 | | |
Insurance including FDIC Premiums
|
| | | | 508 | | | | | | 349 | | |
Communication and postage
|
| | | | 368 | | | | | | 219 | | |
Loan default related expenses
|
| | | | 234 | | | | | | (61) | | |
Director fees
|
| | | | 219 | | | | | | 181 | | |
Bank service charges
|
| | | | 113 | | | | | | 81 | | |
Courier expense
|
| | | | 112 | | | | | | 82 | | |
Write-down on OREO
|
| | | | — | | | | | | 179 | | |
Other
|
| | | | 337 | | | | | | 133 | | |
Total other expenses
|
| | | $ | 5,144 | | | | | $ | 2,819 | | |
|
| | |
As of December 31, 2017
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Description of Financial Instruments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal Securities
|
| | | $ | 16,047 | | | | | $ | — | | | | | $ | 16,047 | | | | | $ | — | | |
Mortgage-back securities
|
| | | | 9,740 | | | | | | — | | | | | | 9,740 | | | | | | — | | |
Collateralized mortgage obligations
|
| | | | 1,750 | | | | | | — | | | | | | 1,750 | | | | | | — | | |
U.S. Government Agencies
|
| | | | 6,971 | | | | | | — | | | | | | 6,971 | | | | | | — | | |
SBA securities
|
| | | | 5,997 | | | | | | — | | | | | | 5,997 | | | | | | — | | |
Total at fair value
|
| | | $ | 40,505 | | | | | $ | — | | | | | $ | 40,505 | | | | | $ | — | | |
|
| | |
As of December 31, 2016
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Description of Financial Instruments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal Securities
|
| | | $ | 4,081 | | | | | $ | — | | | | | $ | 4,081 | | | | | $ | — | | |
Mortgage-back securities
|
| | | | 1,684 | | | | | | — | | | | | | 1,684 | | | | | | — | | |
Collateralized mortgage obligations
|
| | | | 1,770 | | | | | | — | | | | | | 1,770 | | | | | | — | | |
U.S. Government Agencies
|
| | | | 5,377 | | | | | | — | | | | | | 5,377 | | | | | | — | | |
U.S. Treasury
|
| | | | 1,006 | | | | | | — | | | | | | 1,006 | | | | | | — | | |
Total at fair value
|
| | | $ | 13,918 | | | | | $ | — | | | | | $ | 13,918 | | | | | $ | — | | |
|
2017
|
| |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
OREO
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Valuation allowance
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total assets measured at fair value
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
2016
|
| |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
OREO
|
| | | $ | 954 | | | | | $ | — | | | | | $ | — | | | | | $ | 954 | | |
Valuation allowance
|
| | | | (179) | | | | | | — | | | | | | — | | | | | | (179) | | |
Total assets measured at fair value
|
| | | $ | 775 | | | | | $ | — | | | | | $ | — | | | | | $ | 775 | | |
|
2017
|
| |
Carrying
Amount |
| |
Fair
Value |
| |
Fair value measurements
|
| | | | | | |||||||||||||||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| | | | | | |||||||||||||||||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 249,853 | | | | | $ | 249,853 | | | | | $ | 249,853 | | | | | $ | — | | | | | $ | — | | | | | | | | ||||||||||
Interest bearing deposits in banks
|
| | | | 1,743 | | | | | | 1,743 | | | | | | 1,743 | | | | | | — | | | | | | — | | | | | | | | ||||||||||
Investment securities
|
| | | | 40,505 | | | | | | 40,505 | | | | | | — | | | | | | 40,505 | | | | | | — | | | | | | | | ||||||||||
Other equity securities
|
| | | | 7,759 | | | | | | 7,759 | | | | | | — | | | | | | 7,759 | | | | | | — | | | | | | | | ||||||||||
Loans, net
|
| | | | 886,864 | | | | | | 883,361 | | | | | | — | | | | | | — | | | | | | 883,361 | | | | | | | | ||||||||||
Loans held for sale
|
| | | | 3,245 | | | | | | 3,245 | | | | | | — | | | | | | 3,245 | | | | | | | | | | | | | | ||||||||||
Accrued interest receivable
|
| | | | 3,002 | | | | | | 3,002 | | | | | | — | | | | | | 3,002 | | | | | | — | | | | | | | | | | | | | | | | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Deposits
|
| | | | 1,104,305 | | | | | | 1,104,665 | | | | | | 875,506 | | | | | | 229,159 | | | | | | — | | | | | | | | ||||||||||
Subordinated Debenture
|
| | | | 5,387 | | | | | | 5,387 | | | | | | — | | | | | | — | | | | | | 5,387 | | | | | | | | ||||||||||
Other borrowings
|
| | | | 6,000 | | | | | | 6,000 | | | | | | — | | | | | | — | | | | | | 6,000 | | | | | | | | ||||||||||
Accrued interest payable
|
| | | | 141 | | | | | | 141 | | | | | | — | | | | | | 141 | | | | | | — | | | | | | | | ||||||||||
Off-balance sheet liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Undisbursed loan commitments
|
| | | | 310 | | | | | | 310 | | | | | | — | | | | | | — | | | | | | 310 | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2016
|
| |
Carrying
Amount |
| |
Fair
Value |
| |
Fair value measurements
|
| |||||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 128,684 | | | | | $ | 128,684 | | | | | $ | 128,684 | | | | | $ | — | | | | | $ | — | | |
Interest bearing deposits in banks
|
| | | | 1,529 | | | | | | 1,529 | | | | | | 1,529 | | | | | | — | | | | | | — | | |
Investment securities
|
| | | | 13,918 | | | | | | 13,918 | | | | | | — | | | | | | 13,918 | | | | | | — | | |
Other equity securities
|
| | | | 3,922 | | | | | | 3,922 | | | | | | — | | | | | | 3,922 | | | | | | — | | |
Loans, net
|
| | | | 504,264 | | | | | | 504,264 | | | | | | — | | | | | | — | | | | | | 504,264 | | |
Accrued interest receivable
|
| | | | 1,481 | | | | | | 1,481 | | | | | | — | | | | | | 1,481 | | | | | | — | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | | 590,758 | | | | | | 591,067 | | | | | | 429,902 | | | | | | 161,166 | | | | | | — | | |
Accrued interest payable
|
| | | | 87 | | | | | | 87 | | | | | | — | | | | | | 87 | | | | | | — | | |
Off-balance sheet liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Undisbursed loan commitments
|
| | | | 280 | | | | | | 280 | | | | | | — | | | | | | — | | | | | | 280 | | |
| | |
2017
|
| |
2016
|
|||||
ASSETS | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 676 | | | | | $ | — |
Investment in bank subsidiary
|
| | | | 129,246 | | | | | | — |
Premises and equipment, net
|
| | | | 4 | | | | | | — |
Other assets
|
| | | | 198 | | | | | | — |
Total Assets
|
| | | $ | 130,124 | | | | | $ | — |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | |
Subordinated debentures, net
|
| | | $ | 5,387 | | | | | $ | — |
Other borrowings
|
| | | | 6,000 | | | | | | — |
Interest payable and other liabilities
|
| | | | 102 | | | | | | — |
Total liabilities
|
| | | | 11,489 | | | | | | — |
Shareholders’ equity: | | | | | | | | | | | |
Preferred stock – no par value; 10,000,000 shares authorized; no shares issued and outstanding
|
| | | | — | | | | | | — |
Common stock – no par value; 100,000,000 shares authorized in 2017 and 2016; 7,496,995 and 5,472,426 shares issued and outstanding in 2017 and 2016, respectively
|
| | | | 81,307 | | | | | | — |
Additional paid in capital
|
| | | | 287 | | | | | | — |
Accumulated other comprehensive income, net of tax
|
| | | | 213 | | | | | | — |
Retained earnings
|
| | | | 36,828 | | | | | | — |
Total shareholders’ equity
|
| | | | 118,635 | | | | | | — |
Total Liabilities and Shareholders’ Equity
|
| | | $ | 130,124 | | | | | $ | — |
|
| | |
2017
|
| |
2016
|
|||||
Income: | | | | | | | | | | | |
Dividends from bank subsidiary
|
| | | $ | 5,620 | | | | | $ | — |
Dividends from statutory trust
|
| | | | 3 | | | | | | — |
Total income
|
| | | | 5,623 | | | | | | — |
Expense: | | | | | | | | | | | |
Interest expense
|
| | | | 404 | | | | | | — |
Non-interest expense
|
| | | | 106 | | | | | | — |
Total expense
|
| | | | 510 | | | | | | — |
Income before provision for income taxes
|
| | | | 5,113 | | | | | | |
Provision for income taxes (benefit)
|
| | | | (147) | | | | | | — |
Net income
|
| | | $ | 5,260 | | | | | $ | — |
|
| | |
2017
|
| |
2016
|
|||||
Cash flows from operating activities: | | | | | | | | | | | |
Net income
|
| | | $ | 5,260 | | | | | $ | — |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | |
Income from subsidiary
|
| | | | (5,620) | | | | | | — |
Dividend from subsidiary
|
| | | | 19,035 | | | | | | |
Income tax benefit
|
| | | | (147) | | | | | | — |
Depreciation of furniture, fixtures and equipment
|
| | | | 2 | | | | | | — |
Mark to market amortization
|
| | | | 40 | | | | | | — |
Increase in other assets
|
| | | | (12) | | | | | | — |
Net cash provided by operating activities
|
| | | | 18,558 | | | | | | — |
Cash flows from investing activities: | | | | | | | | | | | |
Sale of real estate owned
|
| | | | 452 | | | | | | — |
Net cash paid for acquisitions
|
| | | | (18,881) | | | | | | — |
Net cash used in investing activities
|
| | | | (18,429) | | | | | | — |
Cash flows from financing activities: | | | | | | | | | | | |
Increase in long-term borrowings
|
| | | | 6,000 | | | | | | — |
Purchase of shares
|
| | | | (24) | | | | | | — |
Payoff of short-term borrowings
|
| | | | (5,429) | | | | | | — |
Net cash provided by financing activities
|
| | | | 547 | | | | | | — |
Increase in cash and cash equivalents
|
| | | | 676 | | | | | | — |
Cash and cash equivalents at the beginning of the year
|
| | | | — | | | | | | — |
Cash and cash equivalents at end of the year
|
| | | $ | 676 | | | | | $ | — |
|
|
FIG Partners, LLC
|
| |
D.A. Davidson & Co.
|
|
| | |
Amount
|
| |||
SEC registration fee
|
| | | $ | 7,159 | | |
FINRA filing fee
|
| | | | 9,125 | | |
Nasdaq listing fee
|
| | | | 25,000 | | |
Legal fees and expenses
|
| | | | 450,000 | | |
Accounting fees and expenses
|
| | | | 100,000 | | |
Printing fees and expenses
|
| | | | 60,000 | | |
Transfer agent and registrar fees and expenses
|
| | | | 10,000 | | |
Underwriters’ fees and expenses
|
| | | | 250,000 | | |
Miscellaneous
|
| | | | 100,000 | | |
Total
|
| | | $ | 1,011,284 | | |
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ George J. Guarini
George J. Guarini
|
| | Director; President and Chief Executive Officer (principal executive officer) | | |
April 27, 2018
|
|
|
/s/ Keary L. Colwell
Keary L. Colwell
|
| | Senior Executive Vice President and Chief Financial Officer (principal financial officer and accounting officer)) | | |
April 27, 2018
|
|
|
/s/ Lloyd W. Kendall, Jr.
Lloyd W. Kendall, Jr.
|
| | Director (Chairman) | | |
April 27, 2018
|
|
|
/s/ James S. Camp
James S. Camp
|
| | Director | | |
April 27, 2018
|
|
|
/s/ Harpreet S. Chaudhary
Harpreet S. Chaudhary
|
| | Director | | |
April 27, 2018
|
|
|
/s/ Rocco Davis
Rocco Davis
|
| | Director | | |
April 27, 2018
|
|
|
/s/ Malcolm F. Hotchkiss
Malcolm F. Hotchkiss
|
| | Director | | |
April 27, 2018
|
|
|
/s/ Robert G. Laverne, MD
Robert G. Laverne, MD
|
| | Director | | |
April 27, 2018
|
|
|
/s/ David M. Spatz
David M. Spatz
|
| | Director | | |
April 27, 2018
|
|