(State or other jurisdiction of |
(I.R.S. Employer | |
Incorporation or organization) |
Identification No.) | |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ |
Accelerated filer |
☐ | ||||||
☐ |
Smaller reporting company |
|||||||
PART I – |
3 |
|||||
ITEM 1. |
5 |
|||||
10 |
||||||
ITEM 2. |
41 |
|||||
41 |
||||||
41 |
||||||
43 |
||||||
53 |
||||||
69 |
||||||
ITEM 3. |
71 |
|||||
ITEM 4. |
71 |
|||||
PART II – |
72 |
|||||
ITEM 1. |
72 |
|||||
ITEM 1A. |
72 |
|||||
ITEM 2. |
73 |
|||||
ITEM 3. |
73 |
|||||
ITEM 4. |
73 |
|||||
ITEM 5. |
73 |
|||||
ITEM 6. |
73 |
|||||
74 |
• | local, regional, national and international economic and market conditions and political events and the impact they may have on us, our customers and our assets and liabilities; |
• | our ability to attract deposits and other sources of funding or liquidity; |
• | supply and demand for commercial or residential real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend; |
• | a sharp or prolonged slowdown or decline in real estate construction, sales or leasing activities; |
• | changes in the financial performance and/or condition of our borrowers, depositors, key vendors or counterparties; |
• | changes in our levels of delinquent loans, nonperforming assets, allowance for loan losses and charge-offs; |
• | the costs or effects of mergers, acquisitions or dispositions we may make, including the 2018 merger of Community Bank with and into Citizens Business Bank, whether we are able to obtain any required governmental approvals in connection with any such mergers, acquisitions or dispositions, and/or our ability to realize the contemplated financial or business benefits or cost savings associated with any such mergers, acquisitions or dispositions; |
• | the effect of changes in laws, regulations and applicable judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, bank capital levels, allowance for loan losses, consumer, commercial or secured lending, securities and securities trading and hedging, bank operations, compliance, fair lending, the Community Reinvestment Act, employment, executive compensation, insurance, cybersecurity, vendor management and information security technology) with which we and our subsidiaries must comply or believe we should comply or which may otherwise impact us; |
• | the effects of additional legal and regulatory requirements to which we have or will become subject as a result of our total assets exceeding $10 billion, which first occurred in the third quarter of 2018 due to the closing of our merger transaction with Community Bank; |
• | changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting standards, including changes in the Basel Committee framework establishing capital standards for bank credit, operations and market risks; |
• | the accuracy of the assumptions and estimates and the absence of technical error in implementation or calibration of models used to estimate the fair value of financial instruments or currently expected credit losses or delinquencies; |
• | the sensitivity of our assets and liabilities to changes in market interest rates, or our current allowance for loan losses; |
• | inflation, changes in market interest rates, securities market and monetary fluctuations; |
• | changes in government-established interest rates, reference rates (including the anticipated phase-out of LIBOR) or monetary policies; |
• | changes in the amount, cost and availability of deposit insurance; |
• | disruptions in the infrastructure that supports our business and the communities where we are located, which are concentrated in California, involving or related to physical site access and/or communication facilities; cyber incidents or theft or loss of Company or customer data or money; political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, drought, the effects of pandemic diseases, climate changes, extreme weather events, that may affect electrical, environmental, computer servers, and communications or other services or facilities we use, or that may affect our customers, employees or third parties with whom we conduct business; |
• | our timely development and implementation of new banking products and services and the perceived overall value of these products and services by customers and potential customers; |
• | the Company’s relationships with and reliance upon outside vendors with respect to certain of the Company’s key internal and external systems, applications and controls; |
|
• | changes in commercial or consumer spending, borrowing and savings preferences or behaviors; |
• | technological changes and the expanding use of technology in banking and financial services (including the adoption of mobile banking, funds transfer applications, electronic marketplaces for loans, blockchain technology and other banking products, systems or services); |
• | our ability to retain and increase market share, retain and grow customers and control expenses; |
• | changes in the competitive environment among banks and other financial services and technology providers; |
• | competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers including retail businesses and technology companies; |
• | volatility in the credit and equity markets and its effect on the general economy or local or regional business conditions or on the Company’s assets, liabilities, or customers; |
• | fluctuations in the price of the Company’s common stock or other securities, and the resulting impact on the Company’s ability to raise capital or make acquisitions; |
• | the effect of changes in accounting policies and practices, as may be adopted from time-to-time by the regulatory agencies, as well as by the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; |
• | changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our workforce, management team and/or our board of directors; |
• | our ability to identify suitable and qualified replacements for any of our executive officers who may leave their employment with us, including our Chief Executive Officer; |
• | the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, bank operations, consumer or employee class action litigation); |
• | regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; |
• | our ongoing relations with our various federal and state regulators, including the SEC, Federal Reserve Board, FDIC and California DBO; |
• | our success at managing the risks involved in the foregoing items; and |
• | all other factors set forth in the Company’s public reports, including its Annual Report on Form 10-K for the year ended December 31, 2018, and particularly the discussion of risk factors within that document. |
September 30, 2019 |
|
December 31, 2018 |
|||||||
Assets |
|
||||||||
Cash and due from banks |
$ | |
|
$ | |
||||
Interest-earning balances due from Federal Reserve |
|
|
|
||||||
Total cash and cash equivalents |
|
|
|
||||||
Interest-earning balances due from depository institutions |
|
|
|
||||||
Investment securities available-for-sale, at fair value (with amortized cost of $2019, and $ |
|
|
|
||||||
Investment securities held-to-maturity (with fair value of $at September 30, 2019, and $ |
|
|
|
||||||
Total investment securities |
|
|
|
||||||
Investment in stock of Federal Home Loan Bank (FHLB) |
|
|
|
||||||
Loans and lease finance receivables |
|
|
|
||||||
Allowance for loan losses |
( |
) |
( |
) | |||||
Net loans and lease finance receivables |
|
|
|
||||||
Premises and equipment, net |
|
|
|
||||||
Bank owned life insurance (BOLI) |
|
|
|
||||||
Accrued interest receivable |
|
|
|
||||||
Intangibles |
|
|
|
||||||
Goodwill |
|
|
|
||||||
Other real estate owned (OREO) |
|
|
|
||||||
Income taxes |
|
|
|
||||||
Other assets |
|
|
|
||||||
Total assets |
$ | |
|
$ | |
||||
|
|||||||||
Liabilities and Stockholders’ Equity |
|
||||||||
Liabilities: |
|
||||||||
Deposits: |
|
||||||||
Noninterest-bearing |
$ | |
|
$ | |
||||
Interest-bearing |
|
|
|
||||||
Total deposits |
|
|
|
||||||
Customer repurchase agreements |
|
|
|
||||||
Other borrowings |
|
|
|||||||
Deferred compensation |
|
|
|
||||||
Junior subordinated debentures |
|
|
|
||||||
Other liabilities |
|
|
|
||||||
Total liabilities |
|
|
|
||||||
|
|||||||||
Commitments and Contingencies |
|
||||||||
Stockholders’ Equity |
|
||||||||
Common stock, authorized, |
|
|
|
||||||
Retained earnings |
|
|
|
||||||
Accumulated other comprehensive income (loss), net of tax |
|
|
( |
) | |||||
Total stockholders’ equity |
|
|
|
||||||
Total liabilities and stockholders’ equity |
$ | |
|
$ | |
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, | ||||||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||||
Interest income: |
|||||||||||||||||
Loans and leases, including fees |
$ | $ | $ | $ | |||||||||||||
Investment securities: |
|||||||||||||||||
Investment securities available-for-sale |
|||||||||||||||||
Investment securities held-to-maturity |
|||||||||||||||||
Total investment income |
|||||||||||||||||
Dividends from FHLB stock |
|||||||||||||||||
Interest-earning deposits with other institutions |
|||||||||||||||||
Total interest income |
|||||||||||||||||
Interest expense: |
|||||||||||||||||
Deposits |
|||||||||||||||||
Borrowings and customer repurchase agreements |
|||||||||||||||||
Junior subordinated debentures |
|||||||||||||||||
Total interest expense |
|||||||||||||||||
Net interest income before provision for (recapture of) loan losses |
|||||||||||||||||
Provision for (recapture of) loan losses |
( |
) | |||||||||||||||
Net interest income after provision for (recapture of) loan losses |
|||||||||||||||||
Noninterest income: |
|||||||||||||||||
Service charges on deposit accounts |
|||||||||||||||||
Trust and investment services |
|||||||||||||||||
Bankcard services |
|||||||||||||||||
BOLI income |
|||||||||||||||||
Gain on OREO, net |
- |
- |
|||||||||||||||
Gain on sale of building, net |
- |
- |
- |
||||||||||||||
Gain on eminent domain condemnation, net |
- |
- |
- |
||||||||||||||
Other |
|||||||||||||||||
Total noninterest income |
|||||||||||||||||
Noninterest expense: |
|||||||||||||||||
Salaries and employee benefits |
|||||||||||||||||
Occupancy and equipment |
|||||||||||||||||
Professional services |
|||||||||||||||||
Software licenses and maintenance |
|||||||||||||||||
Marketing and promotion |
|||||||||||||||||
Amortization of intangible assets |
|||||||||||||||||
Acquisition related expenses |
|||||||||||||||||
Other |
|||||||||||||||||
Total noninterest expense |
|||||||||||||||||
Earnings before income taxes |
|||||||||||||||||
Income taxes |
|||||||||||||||||
Net earnings |
$ | $ | $ | $ | |||||||||||||
Other comprehensive income (loss): |
|||||||||||||||||
Unrealized gain (loss) on securities arising during the period, before tax |
$ | $ | ( |
) | $ | $ | ( |
) | |||||||||
Less: Reclassification adjustment for net gain on securities included in net income |
( |
) |
- |
( |
) |
- |
|||||||||||
Other comprehensive income (loss), before tax |
( |
) |
( |
) | |||||||||||||
Less: Income tax (expense) benefit related to items of other comprehensive income |
( |
) | ( |
) | |||||||||||||
Other comprehensive income (loss), net tax of |
( |
) | ( |
) | |||||||||||||
Comprehensive income |
$ | $ | $ | $ | |||||||||||||
Basic earnings per common share |
$ | $ | $ | $ | |||||||||||||
Diluted earnings per common share |
$ | $ | $ | $ |
Common Shares Outstanding |
Common Stock |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||
Balance, July 1, 2018 |
|
$ | |
$ | |
$ | ( |
) | $ | |
|||||||||||
Repurchase of common stock |
( |
) | ( |
) | - |
- |
( |
) | |||||||||||||
Issuance of common stock for acquisition of Community |
|
|
- |
- |
|
||||||||||||||||
Exercise of stock options |
|
|
- |
- |
|
||||||||||||||||
Shares issued pursuant to stock-based compensation plan |
|
|
- |
- |
|
||||||||||||||||
Cash dividends declared on common stock ($ |
- |
- |
( |
) | - |
( |
) | ||||||||||||||
Net earnings |
- |
- |
|
- |
|
||||||||||||||||
Other comprehensive loss |
- |
- |
- |
( |
) | ( |
) | ||||||||||||||
Balance, September 30, 2018 |
|
$ | |
$ | |
$ | ( |
) | $ | |
|||||||||||
Balance, July 1, 2019 |
|
$ | |
$ | |
$ | |
$ | |
||||||||||||
Repurchase of common stock |
( |
) | ( |
) | - |
- |
( |
) | |||||||||||||
Exercise of stock options |
|
|
- |
- |
|
||||||||||||||||
Shares issued pursuant to stock-based compensation plan |
|
|
- |
- |
|
||||||||||||||||
Cash dividends declared on common stock ($ |
- |
- |
( |
) | - |
( |
) | ||||||||||||||
Net earnings |
- |
- |
|
- |
|
||||||||||||||||
Other comprehensive income |
- |
- |
- |
|
|
||||||||||||||||
Balance, September 30, 2019 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
For the Nine Months Ended September 30, 2019 |
Common Shares Outstanding |
Common Stock |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||
Balance, January 1, 2018 |
|
$ | |
$ | |
$ | |
$ | |
||||||||||||
Cumulative adjustment upon adoption of ASU 2018-02 |
- |
- |
( |
) | |
- |
|||||||||||||||
Repurchase of common stock |
( |
) | ( |
) | - |
- |
( |
) | |||||||||||||
Issuance of common stock for acquisition of Community Bank |
|
|
- |
- |
|
||||||||||||||||
Exercise of stock options |
|
|
- |
- |
|
||||||||||||||||
Shares issued pursuant to stock-based compensation plan |
|
|
- |
- |
|
||||||||||||||||
Cash dividends declared on common stock ($ |
- |
- |
( |
) | - |
( |
) | ||||||||||||||
Net earnings |
- |
- |
|
- |
|
||||||||||||||||
Other comprehensive lo s s |
- |
- |
- |
( |
) | ( |
) | ||||||||||||||
Balance, September 30, 2018 |
|
$ | |
$ | |
$ | ( |
) | $ | |
|||||||||||
Balance, January 1, 2019 |
|
$ | |
$ | |
$ | ( |
) | $ | |
|||||||||||
Repurchase of common stock |
( |
) | ( |
) | - |
- |
( |
) | |||||||||||||
Exercise of stock options |
|
|
- |
- |
|
||||||||||||||||
Shares issued pursuant to stock-based compensation plan |
|
|
- |
- |
|
||||||||||||||||
Cash dividends declared on common stock ($ |
- |
- |
( |
) | - |
( |
) | ||||||||||||||
Net earnings |
- |
- |
|
- |
|
||||||||||||||||
Other comprehensive income |
- |
- |
- |
|
|
||||||||||||||||
Balance, September 30, 2019 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
For the Nine Months Ended September 30, | |||||||||
2019 |
2018 |
||||||||
Cash Flows from Operating Activities |
|||||||||
Interest and dividends received |
$ | |
|
||||||
Service charges and other fees received |
|
|
|||||||
Interest paid |
( |
) | ( |
) | |||||
Net cash paid to vendors, employees and others |
( |
) | ( |
) | |||||
Income taxes |
( |
) | ( |
) | |||||
Payments to FDIC, loss share agreement |
- |
( |
) | ||||||
Net cash provided by operating activities |
|
|
|||||||
Cash Flows from Investing Activities |
|||||||||
Proceeds from redemption of FHLB stock |
- |
|
|||||||
Net change in interest-earning balances from depository institutions |
|
|
|||||||
Proceeds from sale of investment securities held-for-sale |
|
|
|||||||
Proceeds from repayment of investment securities available-for-sale |
|
|
|||||||
Proceeds from maturity of investment securities available-for-sale |
|
|
|||||||
Purchases of investment securities available-for-sale |
( |
) | ( |
) | |||||
Proceeds from repayment and maturity of investment securities held-to-maturity |
|
|
|||||||
Purchases of investment securities held-to-maturity |
( |
) | - |
||||||
Net increase in equity investments |
( |
) | ( |
) | |||||
Net decrease (increase) in loan and lease finance receivables |
|
( |
) | ||||||
Proceeds on eminent domain condemnation, net |
|
- |
|||||||
Proceeds from sale of building, net |
|
- |
|||||||
Purchase of premises and equipment |
( |
) | ( |
) | |||||
Proceeds from BOLI death benefit |
|
|
|||||||
Proceeds from sales of other real estate owned |
|
|
|||||||
Cash acquired from acquisition, net of cash paid |
- |
( |
) | ||||||
Net cash provided by investing activities |
|
|
|||||||
Cash Flows from Financing Activities |
|||||||||
Net increase (decrease) in other deposits |
|
( |
) | ||||||
Net decrease in time deposits |
( |
) | ( |
) | |||||
Repayment of FHLB advances |
- |
( |
) | ||||||
Net decrease in other borrowings |
( |
) | ( |
) | |||||
Net decrease in customer repurchase agreements |
( |
) | ( |
) | |||||
Cash dividends on common stock |
( |
) | ( |
) | |||||
Repurchase of common stock |
( |
) | ( |
) | |||||
Proceeds from exercise of stock options |
|
|
|||||||
Net cash used in financing activities |
( |
) | ( |
) | |||||
Net increase in cash and cash equivalents |
|
|
|||||||
Cash and cash equivalents, beginning of period |
|
|
|||||||
Cash and cash equivalents, end of period |
$ |
|
$ |
|
|||||
For the Nine Months Ended September 30, | |||||||||
2019 |
|
2018 |
|||||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities |
|||||||||
Net earnings |
|
|
| ||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||||||||
|
|
|
|
|
|
|
|
| |
Gain on sale of investment securities, net |
|
|
( |
) |
|
|
- |
| |
Gain on eminent domain condemnation, net |
( |
) | - |
||||||
Gain on sale of building, net |
( |
) | - |
||||||
Gain on sale of other real estate owned |
( |
) | ( |
) | |||||
Increase in BOLI |
( |
) | ( |
) | |||||
Net amortization of premiums and discounts on investment securities |
|
|
|||||||
Accretion of discount for acquired loans, net |
( |
) | ( |
) | |||||
Provision for (recapture of) loan losses |
|
( |
) | ||||||
Payments to FDIC, loss share agreement |
- |
( |
) | ||||||
Stock-based compensation |
|
|
|||||||
Depreciation and amortization, net |
|
|
|||||||
Change in other assets and liabilities |
( |
) | |
||||||
Total adjustments |
( |
) | |
||||||
Net cash provided by operating activities |
$ | |
|
|
|||||
Supplemental Disclosure of Non-cash Investing Activities |
|||||||||
Transfer of loans to other real estate owned |
$ | |
$ | |
|||||
Issuance of common stock for acquisition |
$ | - |
$ | |
1. |
BUSINESS |
2. |
BASIS OF PRESENTATION |
3. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
4. |
BUSINESS COMBINATIONS |
|
August 10, 2018 | ||||
|
(Dollars in thousands) | ||||
Merger Consideration |
|||||
Cash paid |
$ |
|
|||
CVBF common stock issued |
|
||||
Total merger consideration |
$ | | |||
Identifiable net assets acquired, at fair value |
|||||
Assets Acquired |
|||||
Cash and cash equivalents |
|
||||
Investment securities |
|
||||
FHLB stock |
|
||||
Loans |
|
||||
Accrued interest receivable |
|
||||
Premises and equipment |
|
||||
BOLI |
|
||||
Core deposit intangible |
|
||||
Other assets |
|
||||
Total assets acquired |
| ||||
Liabilities assumed |
|||||
Deposits |
|
||||
FHLB advances |
|
||||
Other borrowings |
|
||||
Other liabilities |
|
||||
Total liabilities assumed |
| ||||
Total fair value of identifiable net assets, at fair value |
| ||||
Goodwill |
$ |
| |||
Unaudited Pro Forma |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, 2018 |
||||||||
(Dollars in thousands, except per share amounts) |
||||||||
Total revenues (net interest income plus noninterest income) |
$ |
$ |
||||||
Net income |
$ |
$ |
||||||
Earnings per share - basic |
$ |
$ |
||||||
Earnings per share - diluted |
$ |
$ |
5. |
INVESTMENT SECURITIES |
September 30, 2019 | |||||||||||||||||||||
Amortized Cost |
Gross Unrealized Holding Gain |
Gross Unrealized Holding Loss |
Fair Value |
Total Percent |
|||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: |
|||||||||||||||||||||
Residential mortgage-backed securities |
$ |
$ |
$ |
( |
) |
$ |
% | ||||||||||||||
CMO/REMIC - residential |
( |
) |
% | ||||||||||||||||||
Municipal bonds |
( |
) |
% | ||||||||||||||||||
Other securities |
% | ||||||||||||||||||||
Total available-for-sale securities |
$ |
$ |
$ |
( |
) |
|
$ |
% | |||||||||||||
Investment securities held-to-maturity: |
|||||||||||||||||||||
Government agency/GSE |
$ |
$ |
$ |
( |
) |
$ |
% | ||||||||||||||
Residential mortgage-backed securities |
( |
) |
% | ||||||||||||||||||
CMO |
( |
) |
% | ||||||||||||||||||
Municipal bonds |
( |
) |
% | ||||||||||||||||||
Total held-to-maturity securities |
$ |
$ |
$ |
( |
) |
$ |
% | ||||||||||||||
December 31, 2018 | |||||||||||||||||||||
Amortized Cost |
Gross Unrealized Holding Gain |
Gross Unrealized Holding Loss |
Fair Value |
T otal Percent |
|||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: |
|||||||||||||||||||||
Residential mortgage-backed securities |
$ |
$ |
$ |
( |
) |
$ |
% | ||||||||||||||
CMO/REMIC - residential |
( |
) |
% | ||||||||||||||||||
Municipal bonds |
( |
) |
% | ||||||||||||||||||
Other securities |
% | ||||||||||||||||||||
Total available-for-sale securities |
$ |
$ |
$ |
( |
) |
$ |
% | ||||||||||||||
Investment securities held-to-maturity: |
|||||||||||||||||||||
Government agency/GSE |
$ |
$ |
$ |
( |
) |
$ |
% | ||||||||||||||
Residential mortgage-backed securities |
( |
) |
% | ||||||||||||||||||
CMO |
( |
) |
% | ||||||||||||||||||
Municipal bonds |
( |
) |
% | ||||||||||||||||||
Total held-to-maturity securities |
$ |
$ |
$ |
( |
) |
$ |
% |
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, | ||||||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Investment securities available-for-sale: |
|||||||||||||||||
Taxable |
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
Tax-advantaged |
|
|
|
|
|||||||||||||
Total interest income from available-for-sale securities |
|
|
|
|
|||||||||||||
Investment securities held-to-maturity: |
|||||||||||||||||
Taxable |
|
|
|
|
|||||||||||||
Tax-advantaged |
|
|
|
|
|||||||||||||
Total interest income from held-to-maturity securities |
|
|
|
|
|||||||||||||
Total interest income from investment securities |
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
September 30, 2019 | |||||||||||||||||||||||||
Less Than 12 Months |
12 Months or Longer |
Total | |||||||||||||||||||||||
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: |
|||||||||||||||||||||||||
Residential mortgage-backed securities |
$ | |
$ | |
$ | |
$ |
( |
) | $ | |
$ | ( |
) | |||||||||||
CMO/REMIC - residential |
|
( |
) | |
( |
) | |
( |
) | ||||||||||||||||
Municipal bonds |
|
|
|
( |
) | |
( |
) | |||||||||||||||||
Total available-for-sale securities |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||||||
Investment securities held-to-maturity: |
|||||||||||||||||||||||||
Government agency/GSE |
$ | |
$ | |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | |||||||||||
Residential mortgage-backed securities |
|
( |
) | |
|
|
( |
) | |||||||||||||||||
CMO |
|
|
|
( |
) | |
( |
) | |||||||||||||||||
Municipal bonds |
|
( |
) | |
( |
) | |
( |
) | ||||||||||||||||
Total held-to-maturity securities |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
$ | ( |
) |
|
|
December 31, 2018 | |||||||||||||||||||||
|
|
Less Than 12 Months |
|
|
12 Months or Longer |
|
|
Total | |||||||||||||||
|
|
Fair Value |
|
Gross Unrealized Holding Losses |
|
Fair Value |
|
Gross Unrealized Holding Losses |
|
Fair Value |
Gross Unrealized Holding Losses | ||||||||||||
|
|
(Dollars in thousands) |
| ||||||||||||||||||||
Investment securities available-for-sale: |
|
|
|
|
|||||||||||||||||||
Residential mortgage-backed securities |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
$ |
( |
) | ||||
CMO/REMIC - residential |
|
|
( |
) |
|
|
|
( |
) |
|
|
( |
) | ||||||||||
Municipal bonds |
|
|
( |
) |
|
|
|
( |
) |
|
|
( |
) | ||||||||||
|
|
|
|
||||||||||||||||||||
Total available-for-sale securities |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
$ |
( |
) | ||||
|
|
|
|
||||||||||||||||||||
Investment securities held-to-maturity: |
|
|
|
|
|||||||||||||||||||
Government agency/GSE |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
$ |
( |
) | ||||
Residential mortgage-backed securities |
|
|
( |
) |
|
|
|
( |
) |
|
|
( |
) | ||||||||||
CMO |
|
|
|
|
|
|
( |
) |
|
|
( |
) | |||||||||||
Municipal bonds |
|
|
( |
) |
|
|
|
( |
) |
|
|
( |
) | ||||||||||
|
|
|
|
||||||||||||||||||||
Total held-to-maturity securities |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
$ |
( |
) | ||||
|
|
|
|
September 30, 2019 | |||||||||||||||||
Available-for-sale |
Held-to-maturity | ||||||||||||||||
Amortized Cost |
Fair Value |
Cost |
|
||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Due in one year or less |
$ |
|
$ |
|
$ |
|
$ | |
|||||||||
Due after one year through five years |
|
|
|
|
|||||||||||||
Due after five years through ten years |
|
|
|
|
|||||||||||||
Due after ten years |
|
|
|
|
|||||||||||||
Total investment securities |
$ |
|
$ |
|
$ |
|
$ | |
6. |
LOANS AND LEASE FINANCE RECEIVABLES AND ALLOWANCE FOR LOAN LOSSES |
September 30, 2019 |
December 31, 2018 | |||||||||||||||
Total Loans and Leases |
Non-PCI Loansand Leases |
|
PCI Loans |
|
Total Loans and Leases | |||||||||||
(Dollars in thousands) |
| |||||||||||||||
Commercial and industrial |
$ | |
|
$ | |
|
$ | |
|
|
| |||||
SBA |
|
|
|
|
|
|
|
| ||||||||
Real estate: |
| |||||||||||||||
Commercial real estate |
|
|
|
|
|
|
|
| ||||||||
Construction |
|
|
|
|
|
|
|
| ||||||||
SFR mortgage |
|
|
|
|
|
|
|
| ||||||||
Dairy & livestock and agribusiness |
|
|
|
|
|
|
|
| ||||||||
Municipal lease finance receivables |
|
|
|
|
|
|
|
| ||||||||
Consumer and other loans |
|
|
|
|
|
|
|
| ||||||||
|
|
|
| |||||||||||||
Gross loans |
|
|
|
|
|
|
|
| ||||||||
Less: Deferred loan fees, net |
( |
) |
( |
) |
|
|
( |
) | ||||||||
|
|
|
| |||||||||||||
Gross loans, net of deferred loan fees |
|
|
|
|
|
|
|
| ||||||||
Less: Allowance for loan losses |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
| |||||||||||||
Total loans and lease finance receivables |
$ | |
|
$ | |
|
$ | |
|
$ |
|
| ||||
|
|
|
|
September 30, 2019 | |||||||||||||||||||||
Pass |
Special Mention |
Substandard (1) |
Doubtful & Loss |
Total |
|||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
SBA |
|
|
|
|
|
||||||||||||||||
Real estate: |
|||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||
Owner occupied |
|
|
|
|
|
||||||||||||||||
Non-owner occupied |
|
|
|
|
|
||||||||||||||||
Construction |
|||||||||||||||||||||
Speculative |
|
|
|
|
|
||||||||||||||||
Non-speculative |
|
|
|
|
|
||||||||||||||||
SFR mortgage |
|
|
|
|
|
||||||||||||||||
Dairy & livestock and agribusiness |
|
|
|
|
|
||||||||||||||||
Municipal lease finance receivables |
|
|
|
|
|
||||||||||||||||
Consumer and other loans |
|
|
|
|
|
||||||||||||||||
Total gross loans |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
(1) | Includes $18.0 million of classified loans acquired from CB in the third quarter of 2018. |
December 31, 2018 (1) | ||||||||||||||||||||
Pass |
Special Mention |
Substandard (2) |
Doubtful & Loss |
Total |
||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial |
$ | $ |
||||||||||||||||||
SBA |
||||||||||||||||||||
Real estate: |
||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||
Owner occupied |
||||||||||||||||||||
Non-owner occupied |
||||||||||||||||||||
Construction |
||||||||||||||||||||
Speculative |
||||||||||||||||||||
Non-speculative |
||||||||||||||||||||
SFR mortgage |
||||||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||||||
Municipal lease finance receivables |
||||||||||||||||||||
Consumer and other loans |
||||||||||||||||||||
Total gross loans |
$ | $ | $ | $ |
(1) | Excludes PCI loans of $ |
(2) | Includes $ |
For the Three Months Ended September 30, 2019 |
|||||||||||||||||||||
Ending Balance June 30, 2019 |
Charge-offs |
Recoveries |
Provision for (Recapture of) Loan Losses |
Ending Balance September 30, |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||
Commercial and industrial |
$ |
|
$ |
$ |
$ |
$ |
|||||||||||||||
SBA |
( |
) | |||||||||||||||||||
Real estate: |
|||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||
Construction |
|||||||||||||||||||||
SFR mortgage |
|||||||||||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||||||||||
Municipal lease finance receivables |
( |
) | |||||||||||||||||||
Consumer and other loans |
( |
) | |||||||||||||||||||
Total allowance for loan losses |
$ | $ | ( |
) | $ | $ | $ |
For the Three Months Ended September 30, 2018 | |||||||||||||||||||||||
Ending Balance June 30, 2018 |
Charge-offs |
Recoveries |
Provision for (Recapture of) Loan Losses |
Ending Balance September 30, 2018 | |||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||
Commercial and industrial |
$ | $ | $ | $ | |||||||||||||||||||
SBA |
( |
) | |||||||||||||||||||||
Real estate: |
|||||||||||||||||||||||
Commercial real estate |
( |
) |
|||||||||||||||||||||
Construction |
|||||||||||||||||||||||
SFR mortgage |
( |
) |
|||||||||||||||||||||
Dairy & livestock and |
|||||||||||||||||||||||
Municipal lease finance |
|||||||||||||||||||||||
Consumer and other loans |
( |
) | ( |
) |
|||||||||||||||||||
PCI loans |
( |
) |
|||||||||||||||||||||
Total allowance for loan |
$ |
$ | ( |
) | $ | $ | $ | ||||||||||||||||
For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Ending Balance December 31, 2018 |
Charge-offs |
Recoveries |
Provision for (Recapture of) Loan Losses |
Ending Balance September 30, 2019 | |||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||
Commercial and industrial |
$ |
$ | ( |
) | $ | $ |
$ |
||||||||||||||||
SBA |
( |
) | |||||||||||||||||||||
Real estate: |
|||||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||||
Construction |
( |
) |
|||||||||||||||||||||
SFR mortgage |
( |
) |
|||||||||||||||||||||
Dairy & livestock and |
( |
) | |||||||||||||||||||||
Municipal lease finance receivables |
( |
) | |||||||||||||||||||||
Consumer and other loans |
( |
) | ( |
) |
|||||||||||||||||||
Total allowance for loan |
$ | $ | ( |
) | $ | $ | $ | ||||||||||||||||
For the Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Ending Balance December 31, 2017 |
Charge-offs |
Recoveries |
(Recapture of) Provision for Loan Losses |
Ending Balance September 30, | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial and industrial |
$ | $ | $ | $ | $ | ||||||||||||||||||
SBA |
( |
) | |||||||||||||||||||||
Real estate: |
|||||||||||||||||||||||
Commercial real estate |
( |
) |
|||||||||||||||||||||
Construction |
( |
) |
|||||||||||||||||||||
SFR mortgage |
|||||||||||||||||||||||
Dairy & livestock and |
|||||||||||||||||||||||
Municipal lease finance receivables |
( |
) | |||||||||||||||||||||
Consumer and other loans |
( |
) | ( |
) |
|||||||||||||||||||
PCI loans |
( |
) |
|||||||||||||||||||||
Total allowance for loan losses |
$ | $ | ( |
) | $ | $ | ( |
) |
$ |
September 30, 2019 |
||||||||||||||||
Recorded Investment in Loans |
Allowance for Loan Losses |
|||||||||||||||
Individually Evaluated for Impairment |
Collectively Evaluated for Impairment |
Individually Evaluated for Impairment |
Collectively Evaluated for Impairment |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
$ |
||||||||||||
SBA |
||||||||||||||||
Real estate: |
||||||||||||||||
Commercial real estate |
||||||||||||||||
Construction |
||||||||||||||||
SFR mortgage |
||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||
Municipal lease finance receivables |
||||||||||||||||
Consumer and other loans |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
September 30, 2018 | |||||||||||||||||||||||||
Recorded Investment in Loans |
Allowance for Loan Losses | ||||||||||||||||||||||||
Individually Evaluated for Impairment |
Collectively Evaluated for Impairment |
Acquired with Deterioriated Credit Quality |
Individually Evaluated for Impairment |
Collectively Evaluated for Impairment |
Acquired with Deterioriated Credit Quality |
||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||
SBA |
|||||||||||||||||||||||||
Real estate: |
|||||||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||||||
Construction |
|||||||||||||||||||||||||
SFR mortgage |
|||||||||||||||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||||||||||||||
Municipal lease finance receivables |
|||||||||||||||||||||||||
Consumer and other loans |
|||||||||||||||||||||||||
PCI loans |
|||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||||
30-59 DaysPast Due |
60-89 DaysPast Due |
and Accruing |
Nonaccrual (1) (3) (4) |
Current |
Total Loans and Financing Receivables |
||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial |
$ |
$ |
$ | $ |
$ |
$ |
|||||||||||||||||||
SBA |
|||||||||||||||||||||||||
Real estate: |
|||||||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||||||
Owner occupied |
|||||||||||||||||||||||||
Non-owner occupied |
|||||||||||||||||||||||||
Construction |
|||||||||||||||||||||||||
Speculative (2) |
|||||||||||||||||||||||||
Non-speculative |
|||||||||||||||||||||||||
Dairy & livestock and |
|||||||||||||||||||||||||
Municipal lease finance |
|||||||||||||||||||||||||
Consumer and other loans |
|||||||||||||||||||||||||
Total gross loans |
$ | $ | $ | $ | $ | $ |
(1) | As of September 30, 2019, $30-59 days past due, $60-89 days past due, and $ |
(2) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
(3) | Includes $ |
(4) |
Excludes $ |
December 31, 2018 (1) |
|||||||||||||||||||||||||
30-59 DaysPast Due |
60-89 DaysPast Due |
Total Past Due and Accruing |
Nonaccrual (2) (4) |
Current |
Total Loans and Financing Receivables |
||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial |
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
SBA |
|||||||||||||||||||||||||
Real estate: |
|||||||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||||||
Owner occupied |
|||||||||||||||||||||||||
Non-owner occupied |
|||||||||||||||||||||||||
Construction |
|||||||||||||||||||||||||
Speculative (3) |
|||||||||||||||||||||||||
Non-speculative |
|||||||||||||||||||||||||
SFR mortgage |
|||||||||||||||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||||||||||||||
Municipal lease finance receivables |
|||||||||||||||||||||||||
Consumer and other loans |
|||||||||||||||||||||||||
$ | $ | $ | $ | $ |
$ |
(1) | Excludes PCI loans. |
(2) | As of December 31, 2018, $ 30-59 days past due, $60-89 days past due and $ |
(3) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
(4) | Includes $ |
As of and For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||
Recorded Investment |
Unpaid Principal Balance |
Related Allowance |
Average Recorded Investment |
Interest Income Recognized |
|||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: |
|||||||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||
SBA |
|||||||||||||||||||||
Real estate: |
|||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||
Owner occupied |
|||||||||||||||||||||
Non-owner occupied |
|||||||||||||||||||||
Construction |
|||||||||||||||||||||
Speculative |
|||||||||||||||||||||
Non-speculative |
|||||||||||||||||||||
SFR mortgage |
|||||||||||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||||||||||
Municipal lease finance receivables |
|||||||||||||||||||||
Consumer and other loans |
|||||||||||||||||||||
Total |
|||||||||||||||||||||
With a related allowance recorded: |
|||||||||||||||||||||
Commercial and industrial |
|||||||||||||||||||||
SBA |
|||||||||||||||||||||
Real estate: |
|||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||
Owner occupied |
|||||||||||||||||||||
Non-owner occupied |
|||||||||||||||||||||
Construction |
|||||||||||||||||||||
Speculative |
|||||||||||||||||||||
Non-speculative |
|||||||||||||||||||||
SFR mortgage |
|||||||||||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||||||||||
Municipal lease finance receivables |
|||||||||||||||||||||
Consumer and other loans |
|||||||||||||||||||||
Total |
|||||||||||||||||||||
Total impaired loans |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||
As of and For the Nine Months Ended September 30, 2018 (1) | |||||||||||||||||||||
Recorded Investment |
Unpaid Principal Balance |
Related Allowance |
Average Recorded Investment |
Interest Income Recognized |
|||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: |
|||||||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||
SBA |
|||||||||||||||||||||
Real estate: |
|||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||
Owner occupied |
|||||||||||||||||||||
Non-owner occupied |
|||||||||||||||||||||
Construction |
|||||||||||||||||||||
Speculative |
|||||||||||||||||||||
Non-speculative |
|||||||||||||||||||||
SFR mortgage |
|||||||||||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||||||||||
Municipal lease finance receivables |
|||||||||||||||||||||
Consumer and other loans |
|||||||||||||||||||||
Total |
|||||||||||||||||||||
With a related allowance recorded: |
|||||||||||||||||||||
Commercial and industrial |
|||||||||||||||||||||
SBA |
|||||||||||||||||||||
Real estate: |
|||||||||||||||||||||
Commercial real estate |
|||||||||||||||||||||
Owner occupied |
|||||||||||||||||||||
Non-owner occupied |
|||||||||||||||||||||
Construction |
|||||||||||||||||||||
Speculative |
|||||||||||||||||||||
Non-speculative |
|||||||||||||||||||||
SFR mortgage |
|||||||||||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||||||||||
Municipal lease finance receivables |
|||||||||||||||||||||
Consumer and other loans |
|||||||||||||||||||||
Total |
|||||||||||||||||||||
Total impaired loans |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||
(1) | Excludes PCI loans. |
As of December 31, 2018 (1) | |||||||||||||
Recorded Investment |
Unpaid Principal Balance |
Related Allowance |
|||||||||||
(Dollars in thousands) | |||||||||||||
With no related allowance recorded: |
|||||||||||||
Commercial and industrial |
$ |
$ |
$ |
||||||||||
SBA |
|||||||||||||
Real estate: |
|||||||||||||
Commercial real estate |
|||||||||||||
Owner occupied |
|||||||||||||
Non-owner occupied |
|||||||||||||
Construction |
|||||||||||||
Speculative |
|||||||||||||
Non-speculative |
|||||||||||||
SFR mortgage |
|||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||
Municipal lease finance receivables |
|||||||||||||
Consumer and other loans |
|||||||||||||
Total |
|||||||||||||
With a related allowance recorded: |
|||||||||||||
Commercial and industrial |
|||||||||||||
SBA |
|||||||||||||
Real estate: |
|||||||||||||
Commercial real estate |
|||||||||||||
Owner occupied |
|||||||||||||
Non-owner occupied |
|||||||||||||
Construction |
|||||||||||||
Speculative |
|||||||||||||
Non-speculative |
|||||||||||||
SFR mortgage |
|||||||||||||
Dairy & livestock and agribusiness |
|||||||||||||
Municipal lease finance receivables |
|||||||||||||
Consumer and other loans |
|||||||||||||
Total |
|||||||||||||
Total impaired loans |
$ | $ | $ | ||||||||||
(1) | Excludes PCI loans. |
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) |
(Dollars in thousands) | |||||||||||||||
Performing TDRs: |
||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
||||||||||||
New modifications |
||||||||||||||||
Payoffs/payments, net and other |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
TDRs returned to accrual status |
||||||||||||||||
TDRs placed on nonaccrual status |
||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
||||||||||||
Nonperforming TDRs: |
||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
||||||||||||
New modifications |
||||||||||||||||
Charge-offs |
( |
) |
||||||||||||||
Transfer to OREO |
( |
) |
||||||||||||||
Payoffs/payments, net and other |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
TDRs returned to accrual status |
||||||||||||||||
TDRs placed on nonaccrual status |
||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
||||||||||||
Total TDRs |
$ |
$ |
$ |
$ |
(1) |
Excludes PCI loans. |
For the Three Months Ended September 30, 201 8 (2) |
|||||||||||||||||||||
Loans |
Outstanding Recorded Investment |
Outstanding Recorded Investment |
Outstanding Recorded Investment at September 30, 2018 |
Financial Effect Resulting From Modifications (3) |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||
Commercial and industrial: |
|||||||||||||||||||||
Interest rate reduction |
$ |
||||||||||||||||||||
Change in amortization period |
|||||||||||||||||||||
Real estate: |
|||||||||||||||||||||
Commercial real estate: |
|||||||||||||||||||||
Owner occupied |
|||||||||||||||||||||
Interest rate reduction |
|||||||||||||||||||||
Change in amortization period |
|||||||||||||||||||||
Non-owner occupied |
|||||||||||||||||||||
Interest rate reduction |
|||||||||||||||||||||
Change in amortization period |
|||||||||||||||||||||
SFR mortgage: |
|||||||||||||||||||||
Interest rate reduction |
|||||||||||||||||||||
Change in amortization period |
|||||||||||||||||||||
Consumer: |
|||||||||||||||||||||
Interest rate reduction |
|||||||||||||||||||||
Change in amortization period |
|||||||||||||||||||||
Total loans |
$ |
$ |
$ |
$ |
For the Nine Months Ended September 30, 2018 (2) |
||||||||||||||||||||
Number of Loans |
Pre-Modification Outstanding Recorded Investment |
Post-Modification Outstanding Recorded Investment |
Outstanding Recorded Investment at September 30, 2018 |
Financial Effect Resulting From Modifications (3) |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Commercial and industrial: |
||||||||||||||||||||
Interest rate reduction |
$ |
$ |
$ |
$ |
||||||||||||||||
Change in amortization period or maturity |
||||||||||||||||||||
Real estate: |
||||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||
Owner occupied |
||||||||||||||||||||
Interest rate reduction |
||||||||||||||||||||
Change in amortization period or maturity |
||||||||||||||||||||
Non-owner occupied |
||||||||||||||||||||
Interest rate reduction |
||||||||||||||||||||
Change in amortization period or maturity |
||||||||||||||||||||
SFR mortgage: |
||||||||||||||||||||
Interest rate reduction |
||||||||||||||||||||
Change in amortization period or maturity |
||||||||||||||||||||
Consumer: |
||||||||||||||||||||
Interest rate reduction |
||||||||||||||||||||
Change in amortization period or maturity |
||||||||||||||||||||
Total loans |
$ |
$ |
$ |
$ |
||||||||||||||||
(1) |
The tables above exclude modified loans that were paid off prior to the end of the period. |
(2) |
Excludes PCI loans. |
(3) |
Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date. |
7. |
EARNINGS PER SHARE RECONCILIATION |
For the Three Months Ended S 30, eptember |
For the Nine Months Ended September 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Earnings per common share: |
||||||||||||||||
Net earnings |
$ |
$ |
$ |
$ |
||||||||||||
Less: Net earnings allocated to restricted stock |
||||||||||||||||
Net earnings allocated to common shareholders |
$ | $ | $ | $ | ||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic earnings per common share |
$ | $ | $ | $ | ||||||||||||
Diluted earnings per common share: |
||||||||||||||||
Net income allocated to common shareholders |
||||||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Incremental shares from assumed exercise of outstanding options |
||||||||||||||||
Diluted weighted average shares outstanding |
||||||||||||||||
Diluted earnings per common share |
$ | $ | $ | $ | ||||||||||||
8. |
FAIR VALUE INFORMATION |
• | Level 1 |
• | Level 2 - derived valuations that can be corroborated by observable market data, either directly or indirectly, for substantially the full term of the financial instrument. |
• | Level 3 |
Carrying Value at |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other (Level 2) |
|
Significant (Level 3) |
||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets |
||||||||||||||||
Investment securities - AFS: |
||||||||||||||||
Residential mortgage-backed securities |
$ | $ | $ | $ | ||||||||||||
CMO/REMIC - residential |
||||||||||||||||
Municipal bonds |
||||||||||||||||
Other securities |
||||||||||||||||
Interest rate swaps |
||||||||||||||||
Total assets |
$ | $ | $ | $ | ||||||||||||
Description of liability |
||||||||||||||||
Interest rate swaps |
$ | $ | $ | $ | ||||||||||||
Total liabilities |
$ | $ | $ | $ | ||||||||||||
Carrying Value at December 31, 2018 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets |
||||||||||||||||
Investment securities - AFS: |
||||||||||||||||
Residential mortgage-backed securities |
$ | $ | $ | $ | ||||||||||||
CMO/REMIC - residential |
||||||||||||||||
Municipal bonds |
||||||||||||||||
Other securities |
||||||||||||||||
Total investment securities - AFS |
||||||||||||||||
Interest rate swaps |
||||||||||||||||
Total assets |
$ | $ | $ | $ | ||||||||||||
Description of liability |
||||||||||||||||
Interest rate swaps |
$ | $ | $ | $ | ||||||||||||
Total liabilities |
$ | $ | $ | $ |
Carrying Value at September 30, 2019 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Losses For the Nine Months Ended September 30, 2019 |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Description of assets |
||||||||||||||||||||
Impaired loans, excluding loans: |
||||||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
SBA |
||||||||||||||||||||
Real estate: |
||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||
Construction |
||||||||||||||||||||
SFR mortgage |
||||||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||||||
Consumer and other loans |
||||||||||||||||||||
Other real estate owned |
||||||||||||||||||||
Asset held-for-sale |
||||||||||||||||||||
Total assets |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Carrying Value at December 31, 2018 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Losses For the Year Ended December 31, 2018 |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Description of assets |
||||||||||||||||||||
Impaired loans, excluding loans: |
||||||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
$ |
||||||||||||||||
SBA |
||||||||||||||||||||
Real estate: |
||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||
Construction |
||||||||||||||||||||
SFR mortgage |
||||||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||||||
Consumer and other loans |
||||||||||||||||||||
Other real estate owned |
||||||||||||||||||||
Asset held-for-sale |
||||||||||||||||||||
Total assets |
$ |
$ |
$ |
$ |
$ |
September 30, 2019 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying Amount |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||
Assets |
|||||||||||||||||||||
Total cash and cash equivalents |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||
Interest-earning balances due from depository institutions |
|||||||||||||||||||||
Investment securities available-for-sale |
|||||||||||||||||||||
Investment securities held-to-maturity |
|||||||||||||||||||||
Total loans, net of allowance for loan losses |
|||||||||||||||||||||
Swaps |
|||||||||||||||||||||
Liabilities |
|||||||||||||||||||||
Deposits: |
|||||||||||||||||||||
Interest-bearing |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||
Borrowings |
|||||||||||||||||||||
Junior subordinated debentures |
|||||||||||||||||||||
Swaps |
|||||||||||||||||||||
December 31, 2018 |
|||||||||||||||||||||
Estimated Fair Value |
|||||||||||||||||||||
Carrying Amount |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||
Assets |
|||||||||||||||||||||
Total cash and cash equivalents |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||
Interest-earning balances due from depository institutions |
|||||||||||||||||||||
Investment securities available-for-sale |
|||||||||||||||||||||
Investment securities held-to-maturity |
|||||||||||||||||||||
Total loans, net of allowance for loan losses |
|||||||||||||||||||||
Swaps |
|||||||||||||||||||||
Liabilities |
|||||||||||||||||||||
Deposits: |
|||||||||||||||||||||
Interest-bearing |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||
Borrowings |
|||||||||||||||||||||
Junior subordinated debentures |
|||||||||||||||||||||
Swaps |
9. |
DERIVATIVE FINANCIAL INSTRUMENTS |
September 30, 2019 |
||||||||||||||||
Asset Derivatives |
Liability Derivatives |
|||||||||||||||
Balance Sheet Location |
Fair Value |
Balance Sheet Location |
Fair Value |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||||||
Interest rate swaps |
Other assets |
$ | |
Other liabilities |
$ | |
||||||||||
Total derivatives |
$ | |
$ | |
||||||||||||
December 31, 2018 |
||||||||||||||||
Asset Derivatives |
Liability Derivatives |
|||||||||||||||
Balance Sheet Location |
Fair Value |
Balance Sheet Location |
Fair Value |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||||||
Interest rate swaps |
Other assets |
$ | |
Other liabilities |
$ | |
||||||||||
Total derivatives |
$ | |
$ | |
||||||||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain Recognized in Instruments |
Amount of Gain Recognized in Income on Derivative Instruments |
||||||||||||||||||
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Interest rate swaps |
Other income |
|
$ |
|
$ |
|
$ |
|
$ | |
||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
||||||||||||
10. |
OTHER COMPREHENSIVE INCOME |
For the Three Months Ended September 30, | |||||||||||||||||||||||||
2019 |
2018 | ||||||||||||||||||||||||
Before-tax |
Tax effect |
After-tax |
Before-tax |
Tax effect |
After-tax |
||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities: |
|||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI |
$ |
|
$ | ( |
) |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||||||
Net realized gain reclassified into earnings (1) |
|
|
( |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
| |
Amortization of unrealized losses on securities transferred from available-for-sale toheld-to-maturity |
( |
) | |
( |
) | ( |
|
( |
) | ||||||||||||||||
Net change |
$ |
|
$ |
( |
) | $ |
|
$ |
( |
$ |
|
$ |
( |
) | |||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 |
2018 | ||||||||||||||||||||||||
Before-tax |
Tax effect |
After-tax |
Before-tax |
Tax effect |
After-tax |
||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities: |
|||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI |
$ |
|
$ | ( |
) | $ | |
$ | ( |
) | $ | |
$ |
( |
) | ||||||||||
Net realized gain reclassified into earnings (1) |
|
|
( |
) | |
|
|
|
|
|
( |
) | |
|
|
|
|
|
|
|
|
|
|
| |
Amortization of unrealized losses on securities transferred from available-for-sale toheld-to-maturity |
( |
) | |
( |
) | ( |
) | |
( |
) | |||||||||||||||
Net change |
$ |
|
$ |
( |
) | $ |
|
$ |
( |
) |
$ | |
$ | ( |
) |
(1) |
Included in other noninterest income. |
11. |
BALANCE SHEET OFFSETTING |
Gross Amounts Recognized in the Condensed Consolidated Balance Sheets |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets |
Net Amounts Presented in the Condensed Consolidated Balance Sheets |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets |
Net Amount |
|||||||||||||||||||||
Financial |
Collateral Pledged |
||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
September 30, |
|||||||||||||||||||||||||
Financial assets: |
|||||||||||||||||||||||||
Derivatives not designated as hedging instruments |
$ | |
$ | |
$ | |
$ |
|
$ | |
$ | |
|||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Financial liabilities: |
|||||||||||||||||||||||||
Derivatives not designated as hedging instruments |
$ | |
$ | ( |
) | $ | |
$ | |
$ | ( |
) | $ | ( |
) | ||||||||||
Repurchase agreements |
|
|
|
|
( |
) | ( |
) | |||||||||||||||||
Total |
$ | |
$ | ( |
) | $ | |
$ | |
$ | ( |
) | $ |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
December 31, 2018 |
|||||||||||||||||||||||||
Financial assets: |
|||||||||||||||||||||||||
Derivatives not designated as hedging instruments |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Financial liabilities: |
|||||||||||||||||||||||||
Derivatives not designated as hedging instruments |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
||||||||||||
Repurchase agreements |
|
|
|
|
( |
) | ( |
) | |||||||||||||||||
Total |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
) | $ | ( |
) | ||||||||||
12. |
LEASES |
As of September 30, 2019 |
||||
(Dollars in thousands) |
||||
Lease Assets and Liabilities |
||||
ROU assets |
$ |
|
||
Total lease liabilities |
|
For the Three Months Ended |
For the Nine Months Ended |
|||||||
September 30, 2019 |
||||||||
(Dollars in thousands) |
||||||||
Lease Cost |
||||||||
Operating lease expense (1) |
$ |
|
$ |
|
||||
Total lease expense |
$ |
|
$ |
|
||||
(1) Includes short-term leases and variable lease costs, which are immaterial. |
||||||||
Other Information |
||||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||
Operating cash outflows from operating leases, net |
$ |
|
$ |
|
||||
Lease Term and Discount Rate |
||||||||
As of September 30, 2019 |
||||||||
Weighted average remaining lease term (years) |
|
|||||||
Weighted average discount rate |
|
As of September 30, 2019 |
|||||
(Dollars in thousands) |
|||||
Year: |
|||||
2019 (excluding the nine months ended September 30, 2019) |
$ |
|
|||
2020 |
|
||||
2021 |
|
||||
2022 |
|
||||
2023 |
|
||||
Thereafter |
|
||||
Total future lease payments |
|
||||
Less: Imputed interest |
( |
) | |||
Present value of lease liabilities |
$ |
|
|||
13. |
REVENUE RECOGNITION |
For the Three Months Ended September 30, |
For the Nine Months Months Ended September 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Noninterest income: |
||||||||||||||||
In-scope of Topic 606: |
||||||||||||||||
Service charges on deposit accounts |
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Trust and investment services |
|
|
|
|
||||||||||||
Bankcard services |
|
|
|
|
||||||||||||
Gain on OREO, net |
|
|
|
|
||||||||||||
Other |
|
|
|
|
||||||||||||
Noninterest Income (in-scope of Topic 606) |
|
|
|
|
||||||||||||
Noninterest Income (out-of-scope of Topic 606) |
|
|
|
|
||||||||||||
Total noninterest income |
$ |
|
$ |
|
$ |
|
$ |
|
• | Allowance for Loan Losses (“ALLL”) |
• | Business Combinations |
• | Valuation and Recoverability of Goodwill |
• | Income Taxes |
For the Three Months Ended |
Variance | ||||||||||||||||
September 30, 2019 |
June 30, 2019 |
$ |
% |
||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Net interest income |
$ | 108,159 |
$ | 111,057 |
$ | (2,898) |
-2.61% |
||||||||||
Provision for loan losses |
(1,500 |
) | (2,000 |
) | 500 |
25.00% |
|||||||||||
Noninterest income |
11,894 |
18,205 |
(6,311) |
-34.67% |
|||||||||||||
Noninterest expense |
(47,535 |
) | (50,528 |
) | 2,993 |
5.92% |
|||||||||||
Income taxes |
(20,595 |
) | (22,253 |
) | 1,658 |
7.45% |
|||||||||||
Net earnings |
$ | 50,423 |
$ | 54,481 |
$ | (4,058) |
-7.45% |
||||||||||
Earnings per common share: |
|||||||||||||||||
Basic |
$ | 0.36 |
$ | 0.39 |
$ | (0.03) |
|||||||||||
Diluted |
$ | 0.36 |
$ | 0.39 |
$ | (0.03) |
|||||||||||
Return on average assets |
1.78% |
1.95% |
-0.17% |
||||||||||||||
Return on average shareholders’ equity |
10.18% |
11.38% |
-1.20% |
||||||||||||||
Efficiency ratio |
39.60% |
39.09% |
0.51% |
||||||||||||||
Noninterest expense to average assets |
1.68% |
1.81% |
-0.13% |
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||||||||||||||||
September 30, |
Variance |
September 30, |
Variance |
|||||||||||||||||||||||||||||
2019 |
2018 |
$ |
% |
2019 |
2018 |
$ |
% |
|||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||||||||
Net interest income |
$ | 108,159 |
$ | 92,820 |
$ | 15,339 |
16.53% |
$ | 328,752 |
$ | 236,029 |
$ | 92,723 |
39.28% |
||||||||||||||||||
(Provision for) recapture of provision for loan losses |
(1,500) |
(500) |
(1,000) |
-200.00% |
(5,000) |
1,500 |
(6,500) |
-433.33% |
||||||||||||||||||||||||
Noninterest income |
11,894 |
10,112 |
1,782 |
17.62% |
46,402 |
32,723 |
13,679 |
41.80% |
||||||||||||||||||||||||
Noninterest expense |
(47,535) |
(48,880) |
1,345 |
2.75% |
(149,667) |
(119,080) |
(30,587) |
-25.69% |
||||||||||||||||||||||||
Income taxes |
(20,595) |
(14,994) |
(5,601) |
-37.35% |
(63,941) |
(42,328) |
(21,613) |
-51.06% |
||||||||||||||||||||||||
Net earnings |
$ | 50,423 |
$ | 38,558 |
$ | 11,865 |
30.77% |
$ | 156,546 |
$ | 108,844 |
$ | 47,702 |
43.83% |
||||||||||||||||||
Earnings per common share: |
||||||||||||||||||||||||||||||||
Basic |
$ | 0.36 |
$ | 0.30 |
$ | 0.06 |
$ | 1.12 |
$ | 0.94 |
$ | 0.18 |
||||||||||||||||||||
Diluted |
$ | 0.36 |
$ | 0.30 |
$ | 0.06 |
$ | 1.12 |
$ | 0.94 |
$ | 0.18 |
||||||||||||||||||||
Return on average assets |
1.78% |
1.52% |
0.26% |
1.86% |
1.65% |
0.21% |
||||||||||||||||||||||||||
Return on average shareholders’ equity |
10.18% |
10.17% |
0.01% |
10.89% |
11.86% |
-0.97% |
||||||||||||||||||||||||||
Efficiency ratio |
39.60% |
47.49% |
-7.89% |
39.89% |
44.31% |
-4.42% |
||||||||||||||||||||||||||
Noninterest expense to average assets |
1.68% |
1.93% |
-0.25% |
1.77% |
1.80% |
-0.03% |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Net Income |
$ | 50,423 |
$ | 38,558 |
$ | 156,546 |
$ | 108,844 |
||||||||
Add: Amortization of intangible assets |
2,648 |
1,736 |
8,338 |
2,395 |
||||||||||||
Less: Tax effect of amortization of intangible assets (1) |
(783) |
(513) |
(2,465) |
(708) |
||||||||||||
Tangible net income |
$ | 52,288 |
$ | 39,781 |
$ | 162,419 |
$ | 110,531 |
||||||||
Average stockholders’ equity |
$ | 1,965,427 |
$ | 1,503,643 |
$ | 1,921,981 |
$ | 1,226,848 |
||||||||
Less: Average goodwill |
(663,707) |
(419,418) |
(665,470) |
(218,625) |
||||||||||||
Less: Average intangible assets |
(46,720) |
(34,811) |
(49,682) |
(16,078) |
||||||||||||
Average tangible common equity |
$ | 1,255,000 |
$ | 1,049,414 |
$ | 1,206,829 |
$ | 992,145 |
||||||||
Return on average equity, annualized |
10.18 |
% | 10.17 |
% | 10.89 |
% | 11.86 |
% | ||||||||
Return on average tangible common equity, annualized |
16.53 |
% | 15.04 |
% | 17.99 |
% | 14.89 |
% |
(1) | Tax effected at respective statutory rates. |
For the Three Months Ended September 30, | ||||||||||||||||||||||||
2019 |
2018 | |||||||||||||||||||||||
Average Balance |
Interest |
Yield/ Rate |
Average Balance |
Interest |
Yield/ Rate |
|||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS |
||||||||||||||||||||||||
Investment securities (1) |
||||||||||||||||||||||||
Available-for-sale securities: |
||||||||||||||||||||||||
Taxable |
$ | 1,505,087 |
$ | 8,949 |
2.38% |
$ | 1,863,399 |
$ | 11,126 |
2.39% |
||||||||||||||
Tax-advantaged |
40,189 |
273 |
3.75% |
55,020 |
395 |
3.86% |
||||||||||||||||||
Held-to-maturity securities: |
||||||||||||||||||||||||
Taxable |
506,203 |
2,883 |
2.28% |
527,688 |
2,961 |
2.24% |
||||||||||||||||||
Tax-advantaged |
205,996 |
1,415 |
3.32% |
237,933 |
1,705 |
3.47% |
||||||||||||||||||
Investment in FHLB stock |
17,688 |
301 |
6.75% |
24,645 |
329 |
5.30% |
||||||||||||||||||
Interest-earning deposits with other institutions |
174,119 |
946 |
2.16% |
63,572 |
304 |
1.90% |
||||||||||||||||||
Loans (2) |
7,495,289 |
98,796 |
5.23% |
6,350,240 |
79,818 |
4.99% |
||||||||||||||||||
Total interest-earning assets |
9,944,571 |
113,563 |
4.55% |
9,122,497 |
96,638 |
4.23% |
||||||||||||||||||
Total noninterest-earning assets |
1,269,845 |
935,028 |
||||||||||||||||||||||
Total assets |
$ | 11,214,416 |
$ | 10,057,525 |
||||||||||||||||||||
INTEREST-BEARING LIABILITIES |
||||||||||||||||||||||||
Savings deposits (3) |
$ | 2,991,330 |
3,501 |
0.46% |
$ | 2,850,169 |
2,101 |
0.29% |
||||||||||||||||
Time deposits |
473,347 |
1,088 |
0.91% |
503,649 |
866 |
0.68% |
||||||||||||||||||
Total interest-bearing deposits |
3,464,677 |
4,589 |
0.53% |
3,353,818 |
2,967 |
0.35% |
||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements |
446,087 |
815 |
0.72% |
478,538 |
851 |
0.70% |
||||||||||||||||||
Interest-bearing liabilities |
3,910,764 |
5,404 |
0.55% |
3,832,356 |
3,818 |
0.39% |
||||||||||||||||||
Noninterest-bearing deposits |
5,227,595 |
4,651,127 |
||||||||||||||||||||||
Other liabilities |
110,630 |
70,399 |
||||||||||||||||||||||
Stockholders’ equity |
1,965,427 |
1,503,643 |
||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ | 11,214,416 |
$ | 10,057,525 |
||||||||||||||||||||
Net interest income |
$ | 108,159 |
$ | 92,820 |
||||||||||||||||||||
Net interest spread - tax equivalent |
4.00% |
3.84% |
||||||||||||||||||||||
Net interest margin |
4.32% |
4.04% |
||||||||||||||||||||||
Net interest margin - tax equivalent |
4.34% |
4.06% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended September 30, 2019 and 2018. The non TE rates were 2.40% and 2.41% for the three months ended September 30, 2019 and 2018, respectively. |
(2) | Includes loan fees of $782,000 and $865,000 for the three months ended September 30, 2019 and 2018, respectively. Prepayment penalty fees of $1.0 million and $674,000 are included in interest income for the three months ended September 30, 2019 and 2018, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2019 |
2018 | |||||||||||||||||||||||
Average Balance |
Interest |
Yield/ Rate |
Average Balance |
Interest |
Yield/ Rate |
|||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS |
||||||||||||||||||||||||
Investment securities (1) |
||||||||||||||||||||||||
Available-for-sale securities: |
||||||||||||||||||||||||
Taxable |
$ | 1,582,902 |
$ | 29,079 |
2.45% |
$ | 1,920,942 |
$ | 33,861 |
2.36% |
||||||||||||||
Tax-advantaged |
42,746 |
906 |
3.87% |
54,517 |
1,225 |
3.99% |
||||||||||||||||||
Held-to-maturity securities: |
||||||||||||||||||||||||
Taxable |
509,247 |
8,725 |
2.29% |
540,952 |
8,887 |
2.19% |
||||||||||||||||||
Tax-advantaged |
216,343 |
4,524 |
3.37% |
246,270 |
5,351 |
3.50% |
||||||||||||||||||
Investment in FHLB stock |
17,688 |
931 |
7.04% |
20,032 |
959 |
6.40% |
||||||||||||||||||
Interest-earning deposits with other institutions |
70,848 |
1,140 |
2.15% |
115,200 |
1,475 |
1.71% |
||||||||||||||||||
Loans (2) |
7,571,502 |
300,326 |
5.30% |
5,312,557 |
192,382 |
4.84% |
||||||||||||||||||
Total interest-earning assets |
10,011,276 |
345,631 |
4.63% |
8,210,470 |
244,140 |
4.00% |
||||||||||||||||||
Total noninterest-earning assets |
1,269,160 |
626,966 |
||||||||||||||||||||||
Total assets |
$ | 11,280,436 |
$ | 8,837,436 |
||||||||||||||||||||
INTEREST-BEARING LIABILITIES |
||||||||||||||||||||||||
Savings deposits (3) |
$ | 3,047,444 |
9,159 |
0.40% |
$ | 2,460,390 |
4,667 |
0.25% |
||||||||||||||||
Time deposits |
497,370 |
3,394 |
0.91% |
416,754 |
1,374 |
0.44% |
||||||||||||||||||
Total interest-bearing deposits |
3,544,814 |
12,553 |
0.47% |
2,877,144 |
6,041 |
0.28% |
||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements |
573,633 |
4,326 |
1.00% |
507,755 |
2,070 |
0.54% |
||||||||||||||||||
Interest-bearing liabilities |
4,118,447 |
16,879 |
0.55% |
3,384,899 |
8,111 |
0.32% |
||||||||||||||||||
Noninterest-bearing deposits |
5,136,233 |
4,158,365 |
||||||||||||||||||||||
Other liabilities |
103,775 |
67,324 |
||||||||||||||||||||||
Stockholders’ equity |
1,921,981 |
1,226,848 |
||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ | 11,280,436 |
$ | 8,837,436 |
||||||||||||||||||||
Net interest income |
$ | 328,752 |
$ | 236,029 |
||||||||||||||||||||
Net interest spread - tax equivalent |
4.08% |
3.68% |
||||||||||||||||||||||
Net interest margin |
4.39% |
3.84% |
||||||||||||||||||||||
Net interest margin - tax equivalent |
4.41% |
3.87% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the nine months ended September 30, 2019 and 2018. The non TE rates were 2.45% and 2.38% for the nine months ended September 30, 2019 and 2018, respectively. |
(2) | Includes loan fees of $2.3 million and $2.6 million for the nine months ended September 30, 2019 and 2018, respectively. Prepayment penalty fees of $3.4 million and $2.1 million are included in interest income for the nine months ended September 30, 2019 and 2018, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
Comparision of Three Months Ended September 30, 2019 Compared to 2018 Increase (Decrease) Due to | |||||||||||||||||
Volume |
Rate |
Rate/ Volume |
Total |
||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
Interest income: |
|||||||||||||||||
Available-for-sale securities: |
|||||||||||||||||
Taxable investment securities |
$ | (2,122 |
) | $ | (46 |
) | $ | (9 |
) | $ | (2,177 |
) | |||||
Tax-advantaged investment securities |
(98 |
) | (19 |
) | (5 |
) | (122 |
) | |||||||||
Held-to-maturity securities: |
|||||||||||||||||
Taxable investment securities |
(120 |
) | 44 |
(2 |
) | (78 |
) | ||||||||||
Tax-advantaged investment securities |
(215 |
) | (66 |
) | (9 |
) | (290 |
) | |||||||||
Investment in FHLB stock |
(93 |
) | 91 |
(26 |
) | (28 |
) | ||||||||||
Interest-earning deposits with other institutions |
529 |
41 |
72 |
642 |
|||||||||||||
Loans |
14,389 |
3,888 |
701 |
18,978 |
|||||||||||||
Total interest income |
12,270 |
3,933 |
722 |
16,925 |
|||||||||||||
Interest expense: |
|||||||||||||||||
Savings deposits |
104 |
1,235 |
61 |
1,400 |
|||||||||||||
Time deposits |
(52 |
) | 292 |
(18 |
) | 222 |
|||||||||||
FHLB advances, other borrowings, and customer repurchase agreements |
(56 |
) | 21 |
(1 |
) | (36 |
) | ||||||||||
Total interest expense |
(4 |
) | 1,548 |
42 |
1,586 |
||||||||||||
Net interest income |
$ | 12,274 |
$ | 2,385 |
$ | 680 |
$ | 15,339 |
|||||||||
Comparision of Nine Months Ended September 30, 2019 Compared to 2018 Increase (Decrease) Due to | |||||||||||||||||
Volume |
Rate |
Rate/ Volume |
Total |
||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
Interest income: |
|||||||||||||||||
Available-for-sale securities: |
|||||||||||||||||
Taxable investment securities |
$ | (5,894 |
) | $ | 1,346 |
$ | (234 |
) | $ | (4,782 |
) | ||||||
Tax-advantaged investment securities |
(264 |
) | (70 |
) | 15 |
(319 |
) | ||||||||||
Held-to-maturity securities: |
|||||||||||||||||
Taxable investment securities |
(583 |
) | 447 |
(26 |
) | (162 |
) | ||||||||||
Tax-advantaged investment securities |
(651 |
) | (201 |
) | 25 |
(827 |
) | ||||||||||
Investment in FHLB stock |
(114 |
) | 97 |
(11 |
) | (28 |
) | ||||||||||
Interest-earning deposits with other institutions |
(567 |
) | 378 |
(146 |
) | (335 |
) | ||||||||||
Loans |
81,793 |
18,349 |
7,802 |
107,944 |
|||||||||||||
Total interest income |
73,720 |
20,346 |
7,425 |
101,491 |
|||||||||||||
Interest expense: |
|||||||||||||||||
Savings deposits |
1,113 |
2,728 |
651 |
4,492 |
|||||||||||||
Time deposits |
266 |
1,470 |
284 |
2,020 |
|||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements |
271 |
1,757 |
228 |
2,256 |
|||||||||||||
Total interest expense |
1,650 |
5,955 |
1,163 |
8,768 |
|||||||||||||
Net interest income |
$ | 72,070 |
$ | 14,391 |
$ | 6,262 |
$ | 92,723 |
|||||||||
For the Three Months Ended September 30, |
Variance |
For the Nine Months Ended September 30, |
Variance |
|||||||||||||||||||||||||||||
2019 |
2018 |
$ |
% |
2019 |
2018 |
$ |
% |
|||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||||
Noninterest income: |
||||||||||||||||||||||||||||||||
Service charges on deposit accounts |
$ | 4,833 |
$ | 4,295 |
$ | 538 |
12.53 |
% | $ | 15,039 |
$ | 12,431 |
$ | 2,608 |
20.98 |
% | ||||||||||||||||
Trust and investment services |
2,330 |
2,182 |
148 |
6.78 |
% | 6,964 |
6,738 |
226 |
3.35 |
% | ||||||||||||||||||||||
Bankcard services |
637 |
875 |
(238 |
) | -27.20 |
% | 2,614 |
2,637 |
(23 |
) | -0.87 |
% | ||||||||||||||||||||
BOLI income |
1,797 |
936 |
861 |
91.99 |
% | 4,482 |
2,984 |
1,498 |
50.20 |
% | ||||||||||||||||||||||
Gain on OREO, net |
- |
- |
- |
- |
129 |
3,540 |
(3,411 |
) | -96.36 |
% | ||||||||||||||||||||||
Gain on sale of building, net |
- |
- |
- |
4,545 |
- |
4,545 |
- |
|||||||||||||||||||||||||
Gain on eminent domain condemnation, net |
- |
- |
- |
5,685 |
- |
5,685 |
- |
|||||||||||||||||||||||||
Other |
2,297 |
1,824 |
473 |
25.93% |
6,944 |
4,393 |
2,551 |
58.07% |
||||||||||||||||||||||||
Total noninterest income |
$ | 11,894 |
$ | 10,112 |
$ | 1,782 |
17.62 |
% | $ | 46,402 |
$ | 32,723 |
$ | 13,679 |
41.80 |
% | ||||||||||||||||
For the Three Months Ended September 30, |
Variance |
For the Nine Months Ended September 30, |
Variance |
|||||||||||||||||||||||||||||
2019 |
2018 |
$ |
% |
2019 |
2018 |
$ |
% |
|||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||||
Noninterest expense: |
||||||||||||||||||||||||||||||||
Salaries and employee benefits |
$ | 30,122 |
$ | 26,319 |
$ | 3,803 |
14.45% |
$ | 88,286 |
$ | 69,684 |
$ | 18,602 |
26.69% |
||||||||||||||||||
Occupancy |
3,976 |
4,168 |
(192 |
) | -4.61% |
12,771 |
10,924 |
1,847 |
16.91% |
|||||||||||||||||||||||
Equipment |
1,116 |
1,156 |
(40 |
) | -3.46% |
3,577 |
2,910 |
667 |
22.92% |
|||||||||||||||||||||||
Professional services |
1,688 |
1,154 |
534 |
46.27% |
5,653 |
4,374 |
1,279 |
29.24% |
||||||||||||||||||||||||
Software licenses and maintenance |
2,450 |
2,317 |
133 |
5.74% |
7,414 |
5,836 |
1,578 |
27.04% |
||||||||||||||||||||||||
Marketing and promotion |
1,517 |
1,134 |
383 |
33.77% |
4,149 |
3,638 |
511 |
14.05% |
||||||||||||||||||||||||
Amortization of intangible assets |
2,648 |
1,736 |
912 |
52.53% |
8,338 |
2,395 |
5,943 |
248.14% |
||||||||||||||||||||||||
Telecommunications expense |
656 |
622 |
34 |
5.47% |
2,126 |
1,711 |
415 |
24.25% |
||||||||||||||||||||||||
Regulatory assessments |
147 |
896 |
(749 |
) | -83.59% |
1,805 |
2,276 |
(471 |
) | -20.69% |
||||||||||||||||||||||
Insurance |
430 |
432 |
(2 |
) | -0.46% |
1,368 |
1,278 |
90 |
7.04% |
|||||||||||||||||||||||
Loan expense |
308 |
274 |
34 |
12.41% |
1,115 |
678 |
437 |
64.45% |
||||||||||||||||||||||||
Directors’ expenses |
314 |
275 |
39 |
14.18% |
921 |
785 |
136 |
17.32% |
||||||||||||||||||||||||
Stationery and supplies |
259 |
251 |
8 |
3.19% |
867 |
795 |
72 |
9.06% |
||||||||||||||||||||||||
Acquisition related expenses |
244 |
6,645 |
(6,401 |
) | -96.33% |
6,005 |
7,942 |
(1,937 |
) | -24.39% |
||||||||||||||||||||||
Other |
1,660 |
1,501 |
159 |
10.59% |
5,272 |
3,854 |
1,418 |
36.79% |
||||||||||||||||||||||||
Total noninterest expense |
$ | 47,535 |
$ | 48,880 |
$ | (1,345 |
) | -2.75% |
$ | 149,667 |
$ | 119,080 |
$ | 30,587 |
25.69% |
|||||||||||||||||
Noninterest expense to average assets |
1.68% |
1.93% |
1.77% |
1.80% |
||||||||||||||||||||||||||||
Efficiency ratio (1) |
39.60% |
47.49% |
39.89% |
44.31% |
(1) | Noninterest expense divided by net interest income before provision for loan losses plus noninterest income. |
September 30, 2019 | |||||||||||||||||||||
Amortized Cost |
Gross Unrealized Holding Gain |
Gross Unrealized Holding Loss |
Fair Value |
Total Percent |
|||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: |
|||||||||||||||||||||
Residential mortgage-backed securities |
$ | 1,127,395 |
$ | 20,105 |
$ | (1,341) |
$ | 1,146,159 |
72.99% |
||||||||||||
CMO/REMIC - residential |
381,615 |
1,649 |
(336) |
382,928 |
24.38% |
||||||||||||||||
Municipal bonds |
39,564 |
924 |
(1) |
40,487 |
2.58% |
||||||||||||||||
Other securities |
832 |
- |
- |
832 |
0.05% |
||||||||||||||||
Total available-for-sale securities |
$ | 1,549,406 |
$ | 22,678 |
$ | (1,678) |
$ | 1,570,406 |
100.00% |
||||||||||||
Investment securities held-to-maturity: |
|||||||||||||||||||||
Government agency/GSE |
$ | 123,917 |
$ | 3,238 |
$ | (170) |
$ | 126,985 |
17.60% |
||||||||||||
Residential mortgage-backed securities |
172,919 |
2,624 |
(3) |
175,540 |
24.56% |
||||||||||||||||
CMO |
204,263 |
76 |
(1,467) |
202,872 |
29.02% |
||||||||||||||||
Municipal bonds |
202,854 |
4,198 |
(558) |
206,494 |
28.82% |
||||||||||||||||
Total held-to-maturity securities |
$ | 703,953 |
$ | 10,136 |
$ | (2,198) |
$ | 711,891 |
100.00% |
||||||||||||
December 31, 2018 | |||||||||||||||||||||
Amortized Cost |
Gross Unrealized Holding Gain |
Gross Unrealized Holding Loss |
Fair Value |
Total Percent |
|||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: |
|||||||||||||||||||||
Residential mortgage-backed securities |
$ | 1,494,106 |
$ | 1,348 |
$ | (20,946) |
$ | 1,474,508 |
85.03% |
||||||||||||
CMO/REMIC - residential |
217,223 |
353 |
(3,525) |
214,051 |
12.34% |
||||||||||||||||
Municipal bonds |
45,621 |
332 |
(1,143) |
44,810 |
2.59% |
||||||||||||||||
Other securities |
716 |
- |
- |
716 |
0.04% |
||||||||||||||||
Total available-for-sale securities |
$ | 1,757,666 |
$ | 2,033 |
$ | (25,614) |
$ | 1,734,085 |
100.00% |
||||||||||||
Investment securities held-to-maturity: |
|||||||||||||||||||||
Government agency/GSE |
$ | 138,274 |
$ | 572 |
$ | (2,622) |
$ | 136,224 |
18.57% |
||||||||||||
Residential mortgage-backed securities |
153,874 |
- |
(3,140) |
150,734 |
20.67% |
||||||||||||||||
CMO |
215,336 |
- |
(12,081) |
203,255 |
28.93% |
||||||||||||||||
Municipal bonds |
236,956 |
556 |
(6,188) |
231,324 |
31.83% |
||||||||||||||||
Total held-to-maturity securities |
$ | 744,440 |
$ | 1,128 |
$ | (24,031) |
$ | 721,537 |
100.00% |
||||||||||||
September 30, 2019 | |||||||||||||||||||||||||
Less Than 12 Months |
12 Months or Longer |
Total | |||||||||||||||||||||||
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: |
|||||||||||||||||||||||||
Residential mortgage-backed securities |
$ | 2 |
$ | - |
$ | 127,904 |
$ | (1,341 |
) | $ | 127,906 |
$ | (1,341 |
) | |||||||||||
CMO/REMIC - residential |
122,595 |
(156 |
) | 39,498 |
(180 |
) | 162,093 |
(336 |
) | ||||||||||||||||
Municipal bonds |
- |
- |
564 |
(1 |
) | 564 |
(1 |
) | |||||||||||||||||
Total available-for-sale securities |
$ | 122,597 |
$ | (156 |
) | $ | 167,966 |
$ | (1,522 |
) | $ | 290,563 |
$ | (1,678 |
) | ||||||||||
Investment securities held-to-maturity: |
|||||||||||||||||||||||||
Government agency/GSE |
$ | - |
$ | - |
$ | 19,923 |
$ | (170 |
) | $ | 19,923 |
$ | (170 |
) | |||||||||||
Residential mortgage-backed securities |
5,021 |
(3 |
) | - |
- |
5,021 |
(3 |
) | |||||||||||||||||
CMO |
- |
- |
178,297 |
(1,467 |
) | 178,297 |
(1,467 |
) | |||||||||||||||||
Municipal bonds |
3,037 |
(5 |
) | 32,217 |
(553 |
) | 35,254 |
(558 |
) | ||||||||||||||||
Total held-to-maturity securities |
$ | 8,058 |
$ | (8 |
) | $ | 230,437 |
$ | (2,190 |
) | $ | 238,495 |
$ | (2,198 |
) | ||||||||||
December 31, 2018 | |||||||||||||||||||||||||
Less Than 12 Months |
12 Months or Longer |
Total | |||||||||||||||||||||||
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||
Investment securities available-for-sale: |
|||||||||||||||||||||||||
Residential mortgage-backed securities |
$ | 692,311 |
$ | (4,864 |
) | $ | 593,367 |
$ | (16,082 |
) | $ | 1,285,678 |
$ | (20,946 |
) | ||||||||||
CMO/REMIC - residential |
36,582 |
(365 |
) | 135,062 |
(3,160 |
) | 171,644 |
(3,525 |
) | ||||||||||||||||
Municipal bonds |
9,568 |
(188 |
) | 14,181 |
(955 |
) | 23,749 |
(1,143 |
) | ||||||||||||||||
Total available-for-sale securities |
$ | 738,461 |
$ | (5,417 |
) | $ | 742,610 |
$ | (20,197 |
) | $ | 1,481,071 |
$ | (25,614 |
) | ||||||||||
Investment securities held-to-maturity: |
|||||||||||||||||||||||||
Government agency/GSE |
$ | 7,479 |
$ | (15 |
) | $ | 54,944 |
$ | (2,607 |
) | $ | 62,423 |
$ | (2,622 |
) | ||||||||||
Residential mortgage-backed securities |
59,871 |
(484 |
) | 90,863 |
(2,656 |
) | 150,734 |
(3,140 |
) | ||||||||||||||||
CMO |
- |
- |
203,254 |
(12,081 |
) | 203,254 |
(12,081 |
) | |||||||||||||||||
Municipal bonds |
70,989 |
(778 |
) | 77,723 |
(5,410 |
) | 148,712 |
(6,188 |
) | ||||||||||||||||
Total held-to-maturity securities |
$ | 138,339 |
$ | (1,277 |
) | $ | 426,784 |
$ | (22,754 |
) | $ | 565,123 |
$ | (24,031 |
) | ||||||||||
September 30, 2019 |
December 31, 2018 | ||||||||||||||||
Total Loans and Leases |
Non-PCI Loansand Leases |
PCI Loans |
Total Loans and Leases |
||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
Commercial and industrial |
$ | 921,678 |
$ | 1,002,209 |
$ | 519 |
$ | 1,002,728 |
|||||||||
SBA |
319,571 |
350,043 |
1,258 |
351,301 |
|||||||||||||
Real estate: |
|||||||||||||||||
Commercial real estate |
5,375,668 |
5,394,229 |
14,407 |
5,408,636 |
|||||||||||||
Construction |
119,931 |
122,782 |
- |
122,782 |
|||||||||||||
SFR mortgage |
278,644 |
296,504 |
145 |
296,649 |
|||||||||||||
Dairy & livestock and agribusiness |
311,229 |
393,843 |
700 |
394,543 |
|||||||||||||
Municipal lease finance receivables |
54,468 |
64,186 |
- |
64,186 |
|||||||||||||
Consumer and other loans |
117,128 |
128,429 |
185 |
128,614 |
|||||||||||||
Gross loans |
7,498,317 |
7,752,225 |
17,214 |
7,769,439 |
|||||||||||||
Less: Deferred loan fees, net |
(3,866 |
) | (4,828 |
) | - |
(4,828 |
) | ||||||||||
Gross loans, net of deferred loan fees |
7,494,451 |
7,747,397 |
17,214 |
7,764,611 |
|||||||||||||
Less: Allowance for loan losses |
(68,672 |
) | (63,409 |
) | (204 |
) | (63,613 |
) | |||||||||
Total loans and lease finance receivables |
$ | 7,425,779 |
$ | 7,683,988 |
$ | 17,010 |
$ | 7,700,998 |
|||||||||
September 30, 2019 | ||||||||||||||||
Total Loans |
Commercial Real Estate Loans | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Los Angeles County |
$ | 3,301,874 |
44.0% |
$ | 2,267,332 |
42.2% |
||||||||||
Central Valley |
1,112,079 |
14.8% |
879,344 |
16.3% |
||||||||||||
Orange County |
1,008,152 |
13.5% |
665,360 |
12.4% |
||||||||||||
Inland Empire |
976,892 |
13.0% |
853,110 |
15.9% |
||||||||||||
Central Coast |
420,226 |
5.6% |
343,152 |
6.4% |
||||||||||||
San Diego |
227,235 |
3.0% |
129,115 |
2.4% |
||||||||||||
Other California |
140,005 |
1.9% |
70,640 |
1.3% |
||||||||||||
Out of State |
311,854 |
4.2% |
167,615 |
3.1% |
||||||||||||
$ | 7,498,317 |
100.0% |
$ | 5,375,668 |
100.0% |
|||||||||||
September 30, 2019 | |||||||||||||||||
Loan Balance |
Percent |
Percent Owner- Occupied (1) |
Average Loan Balance |
||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
Commercial real estate: |
|||||||||||||||||
Industrial |
$ | 1,890,465 |
35.2% |
54.6% |
$ | 1,430 |
|||||||||||
Office |
921,565 |
17.1% |
26.9% |
1,506 |
|||||||||||||
Retail |
800,406 |
14.9% |
13.1% |
1,707 |
|||||||||||||
Multi-family |
577,700 |
10.7% |
0.5% |
1,596 |
|||||||||||||
Medical |
279,805 |
5.2% |
45.3% |
1,829 |
|||||||||||||
Secured by farmland (2) |
245,574 |
4.6% |
100.0% |
2,030 |
|||||||||||||
Other (3) |
660,153 |
12.3% |
50.7% |
1,423 |
|||||||||||||
Total commercial real estate |
$ | 5,375,668 |
100.0% |
39.0% |
1,535 |
||||||||||||
(1) | Represents percentage of reported owner-occupied at origination in each real estate loan category. |
(2) | The loans secured by farmland included $130.4 million for loans secured by dairy & livestock land and $115.1 million for loans secured by agricultural land at September 30, 2019. |
(3) | Other loans consist of a variety of loan types, none of which exceeds 2.0% of total commercial real estate loans. |
September 30, 2019 |
December 31, 2018 |
|||||||
(Dollars in thousands) |
||||||||
Nonaccrual loans |
$ | 6,363 |
$ | 16,442 |
||||
Troubled debt restructured loans (nonperforming) |
249 |
3,509 |
||||||
OREO, net |
9,450 |
420 |
||||||
Total nonperforming assets |
$ | 16,062 |
$ | 20,371 |
||||
Troubled debt restructured performing loans |
$ | 3,168 |
$ | 3,594 |
||||
Percentage of nonperforming assets to total loans outstanding, net of deferred fees, and OREO |
0.21% |
0.26% |
||||||
Percentage of nonperforming assets to total assets |
0.14% |
0.18% |
(1) | Excludes PCI loans. |
September 30, 2019 |
December 31, 2018 | ||||||||||||||||
Balance |
Number of Loans |
Balance |
Number of Loans |
||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
Performing TDRs: |
|||||||||||||||||
Commercial and industrial |
$ | 88 |
2 |
$ | 135 |
2 |
|||||||||||
SBA |
542 |
1 |
575 |
1 |
|||||||||||||
Real Estate: |
|||||||||||||||||
Commercial real estate |
417 |
1 |
472 |
1 |
|||||||||||||
Construction |
- |
- |
- |
- |
|||||||||||||
SFR mortgage |
2,121 |
8 |
2,412 |
9 |
|||||||||||||
Dairy & livestock and agribusiness |
- |
- |
- |
- |
|||||||||||||
Consumer and other |
- |
- |
- |
- |
|||||||||||||
Total performing TDRs |
$ | 3,168 |
12 |
$ | 3,594 |
13 |
|||||||||||
Nonperforming TDRs: |
|||||||||||||||||
Commercial and industrial |
$ | 1 |
1 |
$ | 21 |
1 |
|||||||||||
SBA |
- |
- |
- |
- |
|||||||||||||
Real Estate: |
|||||||||||||||||
Commercial real estate |
- |
- |
3,143 |
1 |
|||||||||||||
Construction |
- |
- |
- |
- |
|||||||||||||
SFR mortgage |
- |
- |
- |
- |
|||||||||||||
Dairy & livestock and agribusiness |
- |
- |
78 |
1 |
|||||||||||||
Consumer and other |
248 |
1 |
267 |
1 |
|||||||||||||
Total nonperforming TDRs |
$ | 249 |
2 |
$ | 3,509 |
4 |
|||||||||||
Total TDRs |
$ | 3,417 |
14 |
$ | 7,103 |
17 |
|||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Nonperforming loans: |
||||||||||||||||||||
Commercial and industrial |
$ | 1,550 |
$ | 1,993 |
$ | 8,388 |
$ | 7,490 |
$ | 3,026 |
||||||||||
SBA |
2,706 |
5,082 |
4,098 |
2,892 |
3,005 |
|||||||||||||||
Real estate: |
||||||||||||||||||||
Commercial real estate |
1,083 |
1,095 |
1,134 |
6,068 |
5,856 |
|||||||||||||||
Construction |
- |
- |
- |
- |
- |
|||||||||||||||
SFR mortgage |
888 |
2,720 |
2,894 |
2,937 |
2,961 |
|||||||||||||||
Dairy & livestock and agribusiness |
- |
- |
- |
78 |
775 |
|||||||||||||||
Consumer and other loans |
385 |
397 |
477 |
486 |
807 |
|||||||||||||||
Total |
$ |
6,612 |
$ |
11,287 |
$ |
16,991 |
$ |
19,951 |
$ |
16,430 |
||||||||||
% of Total gross loans |
0.09% |
0.15% |
0.22% |
0.26% |
0.22% |
|||||||||||||||
Past due 30-89 days: |
||||||||||||||||||||
Commercial and industrial |
$ | 756 |
$ | 310 |
$ | 369 |
$ | 909 |
$ | 274 |
||||||||||
SBA |
303 |
- |
601 |
1,307 |
123 |
|||||||||||||||
Real estate: |
||||||||||||||||||||
Commercial real estate |
368 |
- |
124 |
2,789 |
- |
|||||||||||||||
Construction |
- |
- |
- |
- |
- |
|||||||||||||||
SFR mortgage |
- |
- |
- |
285 |
- |
|||||||||||||||
Dairy & livestock and agribusiness |
- |
- |
- |
- |
- |
|||||||||||||||
Consumer and other loans |
- |
22 |
101 |
- |
98 |
|||||||||||||||
Total |
$ |
1,427 |
$ |
332 |
$ |
1,195 |
$ |
5,290 |
$ |
495 |
||||||||||
% of Total gross loans |
0.02% |
0.004% |
0.02% |
0.07% |
0.01% |
|||||||||||||||
OREO: |
||||||||||||||||||||
SBA |
$ | 444 |
$ | - |
$ | - |
$ | - |
$ | - |
||||||||||
Real estate: |
||||||||||||||||||||
Commercial real estate |
2,275 |
2,275 |
2,275 |
- |
- |
|||||||||||||||
SFR mortgage |
6,731 |
- |
- |
420 |
420 |
|||||||||||||||
Total |
$ |
9,450 |
$ |
2,275 |
$ |
2,275 |
$ |
420 |
$ |
420 |
||||||||||
Total nonperforming, past due, and OREO |
$ |
17,489 |
$ |
13,894 |
$ |
20,461 |
$ |
25,661 |
$ |
17,345 |
||||||||||
% of Total gross loans |
0.23% |
0.18% |
0.27% |
0.33% |
0.23% |
As of and For the Nine Months Ended September 30, | ||||
2019 |
2018 | |||
(Dollars in thousands) | ||||
Allowance for loan losses at beginning of period |
$ 63,613 |
$ 59,585 | ||
Charge-offs: |
||||
Commercial and industrial |
(48) |
- | ||
SBA |
(295) |
(257) | ||
Commercial real estate |
- |
- | ||
Construction |
- |
- | ||
SFR mortgage |
- |
- | ||
Dairy & livestock and agribusiness |
(78) |
- | ||
Consumer and other loans |
(7) |
(10) | ||
Total charge-offs |
(428) |
(267) | ||
Recoveries: |
||||
Commercial and industrial |
253 |
81 | ||
SBA |
9 |
15 | ||
Commercial real estate |
- |
- | ||
Construction |
9 |
1,945 | ||
SFR mortgage |
191 |
- | ||
Dairy & livestock and agribusiness |
19 |
19 | ||
Consumer and other loans |
6 |
129 | ||
Total recoveries |
487 |
2,189 | ||
Net recoveries |
59 |
1,922 | ||
Provision for (recapture of) loan losses |
5,000 |
(1,500) | ||
Allowance for loan losses at end of period |
$ 68,672 |
$ 60,007 | ||
Summary of reserve for unfunded loan commitments: |
||||
Reserve for unfunded loan commitments at beginning of period |
$ 8,959 |
$ 6,306 | ||
Estimated fair value of reserve for unfunded loan commitment assumed from Community Bank |
- |
2,903 | ||
Provision for unfunded loan commitments |
- |
- | ||
Reserve for unfunded loan commitments at end of period |
$ 8,959 |
$ 9,209 | ||
Reserve for unfunded loan commitments to total unfunded loan commitments |
0.55% |
0.54% | ||
Amount of total loans at end of period (1) |
$ 7,494,451 |
$ 7,582,459 | ||
Average total loans outstanding (1) |
$ 7,571,502 |
$ 5,312,558 | ||
Net recoveries to average total loans |
0.00% |
0.04% | ||
Net recoveries to total loans at end of period |
0.00% |
0.03% | ||
Allowance for loan losses to average total loans |
0.91% |
1.13% | ||
Allowance for loan losses to total loans at end of period |
0.92% |
0.79% | ||
Net recoveries to allowance for loan losses |
0.09% |
3.20% | ||
Net recoveries to provision for (recapture of) loan losses |
1.18% |
-128.13% |
(1) | Includes PCI loans and is net of deferred loan origination fees, costs and discounts. |
September 30, 2019 |
December 31, 2018 | ||||||||||||||||
Balance |
Percent |
Balance |
Percent |
||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Noninterest-bearing deposits |
$ | 5,385,104 |
61.23% |
$ | 5,204,787 |
58.96% |
|||||||||||
Interest-bearing deposits |
|||||||||||||||||
Investment checking |
433,615 |
4.93% |
460,972 |
5.22% |
|||||||||||||
Money market |
2,110,780 |
24.00% |
2,236,018 |
25.33% |
|||||||||||||
Savings |
403,108 |
4.59% |
393,769 |
4.46% |
|||||||||||||
Time deposits |
461,723 |
5.25% |
531,944 |
6.03% |
|||||||||||||
Total deposits |
$ | 8,794,330 |
100.00% |
$ | 8,827,490 |
100.00% |
|||||||||||
Maturity by Period |
||||||||||||||||||||
Total |
Less Than One Year |
One Year Through Three Years |
Four Years Through Five Years |
Over Five Years |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Deposits (1) |
$ | 8,794,330 |
$ | 8,674,968 |
$ | 107,752 |
$ | 3,251 |
$ | 8,359 |
||||||||||
Customer repurchase agreements (1) |
407,850 |
407,850 |
- |
- |
- |
|||||||||||||||
Junior subordinated debentures (1) |
25,774 |
- |
- |
- |
25,774 |
|||||||||||||||
Deferred compensation |
23,305 |
723 |
1,356 |
807 |
20,419 |
|||||||||||||||
Operating leases |
23,533 |
7,349 |
9,905 |
4,297 |
1,982 |
|||||||||||||||
Affordable housing investment |
6,242 |
4,167 |
1,984 |
55 |
36 |
|||||||||||||||
Total |
$ | 9,281,034 |
$ | 9,095,057 |
$ | 120,997 |
$ | 8,410 |
$ | 56,570 |
||||||||||
(1) | Amounts exclude accrued interest. |
Maturity by Period |
||||||||||||||||||||
Total |
Less Than One Year |
One Year to Three Years |
Four Years to Five Years |
After Five Years |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Commitment to extend credit: |
||||||||||||||||||||
Commercial and industrial |
$ | 951,334 |
$ | 695,927 |
$ | 160,214 |
$ | 7,333 |
$ | 87,860 |
||||||||||
SBA |
410 |
60 |
4 |
- |
346 |
|||||||||||||||
Real estate: |
||||||||||||||||||||
Commercial real estate |
253,648 |
48,533 |
86,165 |
100,747 |
18,203 |
|||||||||||||||
Construction |
80,342 |
63,445 |
13,697 |
- |
3,200 |
|||||||||||||||
SFR Mortgage |
6,998 |
5,006 |
- |
- |
1,992 |
|||||||||||||||
Dairy & livestock and agribusiness (1) |
151,947 |
81,488 |
70,254 |
205 |
- |
|||||||||||||||
Consumer and other loans |
139,059 |
17,430 |
7,036 |
4,894 |
109,699 |
|||||||||||||||
Total commitment to extend credit |
1,583,738 |
911,889 |
337,370 |
113,179 |
221,300 |
|||||||||||||||
Obligations under letters of credit |
50,244 |
41,383 |
8,613 |
248 |
- |
|||||||||||||||
Total |
$ | 1,633,982 |
$ | 953,272 |
$ | 345,983 |
$ | 113,427 |
$ | 221,300 |
||||||||||
(1) | Total commitments to extend credit to agribusiness were $13.3 million at September 30, 2019. |
September 30, 2019 |
December 31, 2018 |
|||||||||||||||||||||||
Capital Ratios |
Adequately Capitalized Ratios |
Well Capitalized Ratios |
CVB Financial Corp. Consolidated |
Citizens Business Bank |
CVB Financial Corp. Consolidated |
Citizens Business Bank |
||||||||||||||||||
Tier 1 leverage capital ratio |
4.00% |
5.00% |
12.23% |
12.09% |
10.98% |
10.90% |
||||||||||||||||||
Common equity Tier I capital ratio |
4.50% |
6.50% |
14.64% |
14.75% |
13.04% |
13.22% |
||||||||||||||||||
Tier 1 risk-based capital ratio |
6.00% |
8.00% |
14.93% |
14.75% |
13.32% |
13.22% |
||||||||||||||||||
Total risk-based capital ratio |
8.00% |
10.00% |
15.83% |
15.65% |
14.13% |
14.03% |
Equity Tier 1 Ratio |
Tier 1 Capital Ratio |
Total Capital Ratio |
Leverage Ratio |
|||||||||||||
Regulatory minimum ratio |
4.5% |
6.0% |
8.0% |
4.0% |
||||||||||||
Plus: Capital conservation buffer requirement |
2.5% |
2.5% |
2.5% |
- |
||||||||||||
Regulatory minimum ratio plus capital conservation buffer |
7.0% |
8.5% |
10.5% |
4.0% |
For the Nine Months Ended September 30, |
||||||||
2019 |
2018 |
|||||||
(Dollars in thousands) |
||||||||
Average cash and cash equivalents |
$ | 237,244 |
$ | 237,817 |
||||
Percentage of total average assets |
2.10% |
2.69% |
||||||
Net cash provided by operating activities |
$ | 147,410 |
$ | 116,564 |
||||
Net cash provided by investing activities |
538,256 |
874,202 |
||||||
Net cash used in financing activities |
(412,066) |
(940,668) |
||||||
Net increase in cash and cash equivalents |
$ | 273,600 |
$ | 50,098 |
||||
Estimated Net Interest Income Sensitivity (1) |
||||||||||||||||||||
September 30, 2019 |
December 31, 2018 |
|||||||||||||||||||
Interest Rate Scenario |
12-month Period |
24-month Period(Cumulative) |
Interest Rate Scenario |
12-month Period |
24-month Period(Cumulative) |
|||||||||||||||
+ 200 basis points |
4.50% |
8.70% |
+ 200 basis points |
3.80% |
7.40% |
|||||||||||||||
- 100 basis points |
-2.30% |
-5.00% |
- 200 basis points |
-5.29% |
-10.26% |
(1) | Percentage change from base. |
Instantaneous Rate Change |
September 30, 2019 |
December 31, 2018 |
||||||||||
100 bp decrease in interest rates |
-19.6% |
-10.2% |
||||||||||
100 bp increase in interest rates |
13.3% |
5.8% |
||||||||||
200 bp increase in interest rates |
23.3% |
10.3% |
||||||||||
300 bp increase in interest rates |
31.0% |
13.8% |
||||||||||
400 bp increase in interest rates |
37.1% |
16.6% |
Period |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Average Price Paid Per Share |
Maximum Number of Shares Available for Repurchase Under the Plans or Programs |
|||||||||
July 1 - 31, 2019 |
- |
$ | - |
9,577,917 |
||||||||
August 1 - 31, 2019 |
584 |
20.03 |
9,577,333 |
|||||||||
September 1 - 30, 2019 |
321 |
20.03 |
9,577,012 |
|||||||||
Total |
905 |
20.03 |
9,577,012 |
|||||||||
Exhibit No. |
Description of Exhibits | |||
10.1 |
||||
10.2 |
||||
31.1 |
||||
31.2 |
||||
32.1 |
||||
32.2 |
||||
101.INS |
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH |
XBRL Taxonomy Extension Schema Document | |||
101.CAL |
XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.DEF |
XBRL Taxonomy Extension Definition Linkbase Document | |||
101.LAB |
XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE |
XBRL Taxonomy Extension Presentation Linkbase Document | |||
104 |
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, has been formatted in Inline XBRL. |
† | Indicates a management contract or compensation plan. |
(1) | Incorporated herein by reference to Exhibit 10.1 to our Form 8-K filed with the SEC on July 19, 2019. |
(2) | Incorporated herein by reference to Exhibit 10.2 to our Form 8-K filed with the SEC on July 19, 2019. |
CVB FINANCIAL CORP. | ||||
(Registrant) | ||||
Date: November 12, 2019 |
||||
/s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||
Executive Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |
Exhibit 31.1
CERTIFICATION
I, Christopher D. Myers, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of CVB Financial Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: November 12, 2019 | By: | /s/ Christopher D. Myers | ||||
Christopher D. Myers | ||||||
President and Chief Executive Officer |
Exhibit 31.2
CERTIFICATION
I, E. Allen Nicholson, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of CVB Financial Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: November 12, 2019 | By: | /s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||||
Chief Financial Officer |
Exhibit 32.1
CERTIFICATION
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of CVB Financial Corp. (the Company) on Form 10-Q for the period ended September 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Christopher D. Myers, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 12, 2019 | By: | /s/ Christopher D. Myers | ||||
Christopher D. Myers | ||||||
President and Chief Executive Officer |
Exhibit 32.2
CERTIFICATION
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of CVB Financial Corp. (the Company) on Form 10-Q for the period ended September 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, E. Allen Nicholson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 12, 2019 | By: | /s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||||
Chief Financial Officer |