☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
California
|
77-0446957
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
445 Pine Avenue, Goleta, California
|
93117
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☐ (Do not check if a smaller reporting company)
|
Smaller reporting company ☒
|
Index
|
Page
|
||
Part I. Financial Information
|
|||
Item 1 – Financial Statements
|
|||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
8
|
|||
The financial statements included in this Form 10-Q should be read in conjunction with Community West Bancshares’ Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
|
|||
29
|
|||
43
|
|||
Item 4 – Controls and Procedures
|
43
|
||
Part II. Other Information
|
|||
Item 1 – Legal Proceedings
|
44 | ||
Item 1A – Risk Factors
|
44
|
||
44
|
|||
Item 3 – Defaults Upon Senior Securities
|
44
|
||
Item 4 – Mine Safety Disclosures
|
44
|
||
Item 5 – Other Information
|
44
|
||
Item 6 – Exhibits
|
45
|
||
46
|
Item 1.
|
Financial Statements-
|
March 31,
2016
|
December 31,
2015
|
|||||||
(unaudited)
|
||||||||
(in thousands, except share amounts)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
2,479
|
$
|
2,768
|
||||
Federal funds sold
|
20
|
21
|
||||||
Interest-earning demand in other financial institutions
|
26,438
|
32,730
|
||||||
Cash and cash equivalents
|
28,937
|
35,519
|
||||||
Money market investments
|
100
|
99
|
||||||
Investment securities - available-for-sale, at fair value; amortized cost of $28,634 at March 31, 2016 and $23,558 at December 31, 2015
|
28,717
|
23,441
|
||||||
Investment securities - held-to-maturity, at amortized cost; fair value of $7,307 at March 31, 2016 and $7,399 at December 31, 2015
|
6,916
|
7,025
|
||||||
Federal Home Loan Bank stock, at cost
|
1,886
|
1,886
|
||||||
Federal Reserve Bank stock, at cost
|
1,373
|
1,373
|
||||||
Loans:
|
||||||||
Held for sale, at lower of cost or fair value
|
61,897
|
64,488
|
||||||
Held for investment, net of allowance for loan losses of $6,819 at
|
||||||||
March 31, 2016 and $6,916 at December 31, 2015
|
478,265
|
472,058
|
||||||
Total loans
|
540,162
|
536,546
|
||||||
Other assets acquired through foreclosure, net
|
176
|
198
|
||||||
Premises and equipment, net
|
2,913
|
2,993
|
||||||
Other assets
|
11,575
|
12,133
|
||||||
Total assets
|
$
|
622,755
|
$
|
621,213
|
||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Non-interest-bearing demand
|
$
|
70,587
|
$
|
76,469
|
||||
Interest-bearing demand
|
250,404
|
250,509
|
||||||
Savings
|
14,294
|
13,690
|
||||||
Certificates of deposit ($250,000 or more)
|
67,995
|
66,722
|
||||||
Other certificates of deposit
|
142,795
|
136,948
|
||||||
Total deposits
|
546,075
|
544,338
|
||||||
Other borrowings
|
10,500
|
10,500
|
||||||
Other liabilities
|
3,741
|
4,431
|
||||||
Total liabilities
|
560,316
|
559,269
|
||||||
Stockholders’ equity:
|
||||||||
Common stock — no par value, 20,000,000 shares authorized; 8,103,105 shares issued and outstanding at March 31, 2016 and 8,205,858 at December 31, 2015
|
41,696
|
42,355
|
||||||
Retained earnings
|
20,694
|
19,657
|
||||||
Accumulated other comprehensive income (loss)
|
49
|
(68
|
)
|
|||||
Total stockholders’ equity
|
62,439
|
61,944
|
||||||
Total liabilities and stockholders’ equity
|
$
|
622,755
|
$
|
621,213
|
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
Interest income:
|
(in thousands, except per share amounts)
|
|||||||
Loans, including fees
|
$
|
7,175
|
$
|
6,712
|
||||
Investment securities and other
|
269
|
305
|
||||||
Total interest income
|
7,444
|
7,017
|
||||||
Interest expense:
|
||||||||
Deposits
|
651
|
605
|
||||||
Other borrowings
|
72
|
61
|
||||||
Total interest expense
|
723
|
666
|
||||||
Net interest income
|
6,721
|
6,351
|
||||||
Provision (credit) for loan losses
|
(247
|
)
|
(968
|
)
|
||||
Net interest income after provision for loan losses
|
6,968
|
7,319
|
||||||
Non-interest income:
|
||||||||
Other loan fees
|
275
|
175
|
||||||
Document processing fees
|
115
|
92
|
||||||
Service charges
|
90
|
73
|
||||||
Other
|
99
|
140
|
||||||
Total non-interest income
|
579
|
480
|
||||||
Non-interest expenses:
|
||||||||
Salaries and employee benefits
|
3,452
|
3,115
|
||||||
Occupancy, net
|
486
|
445
|
||||||
Professional services
|
179
|
248
|
||||||
Loan servicing and collection
|
179
|
89
|
||||||
Data processing
|
171
|
119
|
||||||
Depreciation
|
149
|
91
|
||||||
FDIC assessment
|
97
|
71
|
||||||
Advertising and marketing
|
81
|
80
|
||||||
Stock based compensation
|
80
|
42
|
||||||
Other
|
462
|
471
|
||||||
Total non-interest expenses
|
5,336
|
4,771
|
||||||
Income before provision for income taxes
|
2,211
|
3,028
|
||||||
Provision for income taxes
|
928
|
1,258
|
||||||
Net income
|
1,283
|
1,770
|
||||||
Dividends on preferred stock
|
—
|
140
|
||||||
Discount on partial redemption of preferred stock
|
—
|
(19
|
)
|
|||||
Net income available to common stockholders
|
$
|
1,283
|
$
|
1,649
|
||||
Earnings per share:
|
||||||||
Basic
|
$
|
0.16
|
$
|
0.20
|
||||
Diluted
|
$
|
0.15
|
$
|
0.19
|
||||
Weighted average number of common shares outstanding:
|
||||||||
Basic
|
8,169
|
8,203
|
||||||
Diluted
|
8,467
|
8,501
|
||||||
Dividends declared per common share
|
$
|
0.03
|
$
|
0.02
|
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Net income
|
$
|
1,283
|
$
|
1,770
|
||||
Other comprehensive income (loss), net:
|
||||||||
Unrealized income (loss) on securities available-for-sale (AFS), net (tax effect of ($83) and $10 for each respective period presented)
|
117
|
(14
|
)
|
|||||
Net other comprehensive income (loss)
|
117
|
(14
|
)
|
|||||
Comprehensive income
|
$
|
1,400
|
$
|
1,756
|
Common Stock
|
Accumulated
Other
|
Total
|
||||||||||||||||||
Shares
|
Amount
|
Comprehensive
Income (Loss)
|
Retained
Earnings
|
Stockholders'
Equity
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Balance, December 31, 2015:
|
8,206
|
$
|
42,355
|
$
|
(68
|
)
|
$
|
19,657
|
$
|
61,944
|
||||||||||
Net income
|
—
|
—
|
—
|
1,283
|
1,283
|
|||||||||||||||
Exercise of stock options
|
5
|
15
|
—
|
—
|
15
|
|||||||||||||||
Stock based compensation
|
—
|
80
|
—
|
—
|
80
|
|||||||||||||||
Common stock repurchases
|
(107
|
)
|
(754
|
)
|
—
|
—
|
(754
|
)
|
||||||||||||
Dividends on common stock
|
—
|
—
|
—
|
(246
|
)
|
(246
|
)
|
|||||||||||||
Other comprehensive income, net
|
—
|
—
|
117
|
—
|
117
|
|||||||||||||||
Balance, March 31, 2016
|
8,104
|
$
|
41,696
|
$
|
49
|
$
|
20,694
|
$
|
62,439
|
Three Months Ended March 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
1,283
|
$
|
1,770
|
||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
Provision for loan losses
|
(247
|
)
|
(968
|
)
|
||||
Depreciation
|
149
|
91
|
||||||
Stock based compensation
|
80
|
42
|
||||||
Deferred income taxes
|
190
|
283
|
||||||
Net accretion of discounts and premiums for investment securities
|
(8
|
)
|
(75
|
)
|
||||
(Gains)/Losses on:
|
||||||||
Sale of repossessed assets, net
|
(2
|
)
|
(1
|
)
|
||||
Sale of loans, net
|
—
|
(36
|
)
|
|||||
Sale of assets, net
|
—
|
39
|
||||||
Loans originated for sale and principal collections, net
|
2,591
|
3,071
|
||||||
Changes in:
|
||||||||
Other assets
|
309
|
356
|
||||||
Other liabilities
|
(724
|
)
|
894
|
|||||
Servicing rights, net
|
10
|
2
|
||||||
Net cash provided by operating activities
|
3,631
|
5,468
|
||||||
Cash flows from investing activities:
|
||||||||
Principal pay downs and maturities of available-for-sale securities
|
405
|
4,549
|
||||||
Purchase of available-for-sale securities
|
(5,472
|
)
|
(5,422
|
)
|
||||
Proceeds from principal pay downs and maturities of securities held-to-maturity
|
108
|
511
|
||||||
Loan originations and principal collections, net
|
(6,074
|
)
|
(834
|
)
|
||||
Net increase (decrease) in interest-bearing deposits in other financial institutions
|
(1
|
)
|
—
|
|||||
Purchase of premises and equipment, net
|
(69
|
)
|
(95
|
)
|
||||
Proceeds from sale of other real estate owned and repossessed assets, net
|
138
|
40
|
||||||
Net cash used in investing activities
|
(10,965
|
)
|
(1,251
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
1,737
|
18,586
|
||||||
Net decrease in borrowings
|
—
|
(5,000
|
)
|
|||||
Exercise of stock options
|
15
|
2
|
||||||
Cash dividends paid on common stock
|
(246
|
)
|
(164
|
)
|
||||
Common stock repurchase
|
(754
|
)
|
—
|
|||||
Redemption of preferred stock
|
—
|
(1,000
|
)
|
|||||
Cash dividends paid on preferred stock
|
—
|
(153
|
)
|
|||||
Net cash provided by financing activities
|
752
|
12,271
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(6,582
|
)
|
16,488
|
|||||
Cash and cash equivalents at beginning of year
|
35,519
|
18,959
|
||||||
Cash and cash equivalents at end of period
|
$
|
28,937
|
$
|
35,447
|
||||
Supplemental disclosure:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
657
|
$
|
661
|
||||
Income taxes
|
1,300
|
—
|
||||||
Non-cash investing and financing activity:
|
||||||||
Transfers to other assets acquired through foreclosure, net
|
114
|
223
|
● | Commercial Real Estate, Commercial, Commercial Agriculture, SBA, HELOC, Single Family Residential, and Consumer – Migration analysis combined with risk rating is used to determine the required ALL for all non-impaired loans. In addition, the migration results are adjusted based upon qualitative factors that affect this specific portfolio category. Reserves on impaired loans are determined based upon the individual characteristics of the loan. |
● | Manufactured Housing – The ALL is calculated on the basis of loss history and risk rating, which is primarily a function of delinquency. In addition, the loss results are adjusted based upon qualitative factors that affect this specific portfolio. |
● | The expected future cash flows are estimated and then discounted at the effective interest rate. |
● | The value of the underlying collateral net of selling costs. Selling costs are estimated based on industry standards, the Company’s actual experience or actual costs incurred as appropriate. When evaluating real estate collateral, the Company typically uses appraisals or valuations, no more than twelve months old at time of evaluation. When evaluating non-real estate collateral securing the loan, the Company will use audited financial statements or appraisals no more than twelve months old at time of evaluation. Additionally, for both real estate and non-real estate collateral, the Company may use other sources to determine value as deemed appropriate. |
● | The loan’s observable market price. |
● | Concentrations of credit |
● | International risk |
● | Trends in volume, maturity, and composition |
● | Volume and trend in delinquency |
● | Economic conditions |
● | Outside exams |
● | Geographic distance |
● | Policy and changes |
● | Staff experience and ability |
March 31, 2016
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Fair
Value
|
|||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||
U.S. government agency notes
|
$
|
11,242
|
$
|
77
|
$
|
(23
|
)
|
$
|
11,296
|
|||||||
U.S. government agency collateralized mortgage obligations ("CMO")
|
17,326
|
80
|
(60
|
)
|
17,346
|
|||||||||||
Equity securities: Farmer Mac class A stock
|
66
|
9
|
-
|
75
|
||||||||||||
Total
|
$
|
28,634
|
$
|
166
|
$
|
(83
|
)
|
$
|
28,717
|
|||||||
Securities held-to-maturity
|
||||||||||||||||
U.S. government agency mortgage backed securities ("MBS")
|
$
|
6,916
|
$
|
391
|
$
|
-
|
$
|
7,307
|
||||||||
Total
|
$
|
6,916
|
$
|
391
|
$
|
-
|
$
|
7,307
|
December 31, 2015
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Fair
Value
|
|||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||
U.S. government agency notes
|
$
|
11,257
|
$
|
5
|
$
|
(115
|
)
|
$
|
11,147
|
|||||||
U.S. government agency collateralized mortgage obligations ("CMO")
|
12,235
|
54
|
(58
|
)
|
12,231
|
|||||||||||
Equity securities: Farmer Mac class A stock
|
66
|
-
|
(3
|
)
|
63
|
|||||||||||
Total
|
$
|
23,558
|
$
|
59
|
$
|
(176
|
)
|
$
|
23,441
|
|||||||
Securities held-to-maturity
|
||||||||||||||||
U.S. government agency MBS
|
$
|
7,025
|
$
|
374
|
$
|
-
|
$
|
7,399
|
||||||||
Total
|
$
|
7,025
|
$
|
374
|
$
|
-
|
$
|
7,399
|
March 31, 2016
|
||||||||||||||||||||||||||||||||||||||||
Less than One Year
|
One to Five Years
|
Five to Ten Years
|
Over Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||||||||||||||||||||
Securities available-for-sale
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. government agency notes
|
$
|
9,126
|
2.9
|
%
|
$
|
-
|
-
|
$
|
2,170
|
1.2
|
%
|
$
|
-
|
-
|
$
|
11,296
|
2.6
|
%
|
||||||||||||||||||||||
U.S. government agency CMO
|
-
|
-
|
8,223
|
1.2
|
%
|
5,793
|
0.9
|
%
|
3,330
|
1.4
|
%
|
17,346
|
1.1
|
%
|
||||||||||||||||||||||||||
Farmer Mac class A stock
|
75
|
|||||||||||||||||||||||||||||||||||||||
Total
|
$
|
9,126
|
2.9
|
%
|
$
|
8,223
|
1.2
|
%
|
$
|
7,963
|
1.0
|
%
|
$
|
3,330
|
1.4
|
%
|
$
|
28,717
|
1.7
|
%
|
||||||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS
|
$
|
-
|
-
|
$
|
2,767
|
3.7
|
%
|
$
|
4,149
|
2.9
|
%
|
$
|
-
|
-
|
$
|
6,916
|
3.2
|
%
|
||||||||||||||||||||||
Total
|
$
|
-
|
-
|
$
|
2,767
|
3.7
|
%
|
$
|
4,149
|
2.9
|
%
|
$
|
-
|
-
|
$
|
6,916
|
3.2
|
%
|
December 31, 2015
|
||||||||||||||||||||||||||||||||||||||||
Less than One Year
|
One to Five Years
|
Five to Ten Years
|
Over Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||||||||||||||||||||
Securities available-for-sale
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. government agency notes
|
$
|
8,957
|
2.9
|
%
|
$
|
-
|
-
|
$
|
2,190
|
0.9
|
%
|
$
|
-
|
-
|
$
|
11,147
|
2.5
|
%
|
||||||||||||||||||||||
U.S. government agency CMO
|
-
|
-
|
4,337
|
1.3
|
%
|
4,527
|
0.7
|
%
|
3,367
|
1.2
|
%
|
12,231
|
1.0
|
%
|
||||||||||||||||||||||||||
Farmer Mac class A stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
63
|
-
|
||||||||||||||||||||||||||||||
Total
|
$
|
8,957
|
2.9
|
%
|
$
|
4,337
|
1.3
|
%
|
$
|
6,717
|
0.8
|
%
|
$
|
3,367
|
1.2
|
%
|
$
|
23,441
|
1.7
|
%
|
||||||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS
|
$
|
-
|
-
|
$
|
1,746
|
3.6
|
%
|
$
|
5,279
|
3.1
|
%
|
$
|
-
|
-
|
$
|
7,025
|
3.2
|
%
|
||||||||||||||||||||||
Total
|
$
|
-
|
-
|
$
|
1,746
|
3.6
|
%
|
$
|
5,279
|
3.1
|
%
|
$
|
-
|
-
|
$
|
7,025
|
3.2
|
%
|
March 31,
|
December 31,
|
|||||||||||||||
2016
|
2015
|
|||||||||||||||
Amortized
Cost
|
Estimated
Fair Value
|
Amortized
Cost
|
Estimated
Fair Value
|
|||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||
Due in one year or less
|
$
|
9,061
|
$
|
9,126
|
$
|
9,053
|
$
|
8,957
|
||||||||
After one year through five years
|
8,205
|
8,223
|
4,335
|
4,337
|
||||||||||||
After five years through ten years
|
7,956
|
7,963
|
6,713
|
6,717
|
||||||||||||
After ten years
|
3,346
|
3,330
|
3,391
|
3,367
|
||||||||||||
Farmer Mac class A stock
|
66
|
75
|
66
|
63
|
||||||||||||
$
|
28,634
|
$
|
28,717
|
$
|
23,558
|
$
|
23,441
|
|||||||||
Securities held-to-maturity
|
||||||||||||||||
Due in one year or less
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
After one year through five years
|
2,767
|
2,983
|
1,746
|
1,888
|
||||||||||||
After five years through ten years
|
4,149
|
4,324
|
5,279
|
5,511
|
||||||||||||
After ten years
|
-
|
-
|
-
|
-
|
||||||||||||
$
|
6,916
|
$
|
7,307
|
$
|
7,025
|
$
|
7,399
|
March 31, 2016
|
||||||||||||||||||||||||
Less Than Twelve Months
|
More Than Twelve Months
|
Total
|
||||||||||||||||||||||
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||||||||||
U.S. government agency notes
|
$
|
11
|
$
|
1,981
|
$
|
12
|
$
|
2,170
|
$
|
23
|
$
|
4,151
|
||||||||||||
U.S. government agency CMO
|
15
|
5,576
|
45
|
1,895
|
60
|
7,471
|
||||||||||||||||||
Equity securities: Farmer Mac class A stock
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||
$
|
26
|
$
|
7,557
|
$
|
57
|
$
|
4,065
|
$
|
83
|
$
|
11,622
|
|||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||
U.S. Government-agency MBS
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
December 31, 2015
|
||||||||||||||||||||||||
Less Than Twelve Months
|
More Than Twelve Months
|
Total
|
||||||||||||||||||||||
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||||||||
Securities available-for-sale
|
(in thousands)
|
|||||||||||||||||||||||
U.S. government agency notes
|
$
|
48
|
$
|
7,224
|
$
|
67
|
$
|
1,924
|
$
|
115
|
$
|
9,148
|
||||||||||||
U.S. government agency CMO
|
9
|
1,654
|
49
|
1,945
|
58
|
3,599
|
||||||||||||||||||
Equity securities: Farmer Mac class A stock
|
-
|
-
|
3
|
63
|
3
|
63
|
||||||||||||||||||
$
|
57
|
$
|
8,878
|
$
|
119
|
$
|
3,932
|
$
|
176
|
$
|
12,810
|
|||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||
U.S. Government-agency MBS
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Manufactured housing
|
$
|
182,018
|
$
|
177,891
|
||||
Commercial real estate
|
185,458
|
179,491
|
||||||
Commercial
|
75,345
|
77,349
|
||||||
SBA
|
13,220
|
13,744
|
||||||
HELOC
|
10,885
|
10,934
|
||||||
Single family real estate
|
17,919
|
19,073
|
||||||
Consumer
|
107
|
123
|
||||||
484,952
|
478,605
|
|||||||
Allowance for loan losses
|
(6,819
|
)
|
(6,916
|
)
|
||||
Deferred costs, net
|
318
|
560
|
||||||
Discount on SBA loans
|
(186
|
)
|
(191
|
)
|
||||
Total loans held for investment, net
|
$
|
478,265
|
$
|
472,058
|
March 31, 2016
|
||||||||||||||||||||||||||||
Current
|
30-59 Days*
Past Due
|
60-89 Days*
Past Due
|
Over 90 Days*
Past Due
|
Total
Past Due
|
Total
|
Recorded
Investment
Over 90 Days
and Accruing
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Manufactured housing
|
$
|
181,923
|
$
|
3
|
$
|
92
|
$
|
-
|
$
|
95
|
$
|
182,018
|
$
|
-
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||
Commercial real estate
|
137,628
|
-
|
-
|
612
|
612
|
138,240
|
-
|
|||||||||||||||||||||
SBA 504 1st trust deed
|
24,440
|
-
|
-
|
463
|
463
|
24,903
|
-
|
|||||||||||||||||||||
Land
|
2,948
|
-
|
-
|
-
|
-
|
2,948
|
-
|
|||||||||||||||||||||
Construction
|
19,367
|
-
|
-
|
-
|
-
|
19,367
|
-
|
|||||||||||||||||||||
Commercial
|
75,301
|
-
|
-
|
44
|
44
|
75,345
|
-
|
|||||||||||||||||||||
SBA
|
13,220
|
-
|
-
|
-
|
-
|
13,220
|
-
|
|||||||||||||||||||||
HELOC
|
10,528
|
357
|
-
|
-
|
357
|
10,885
|
-
|
|||||||||||||||||||||
Single family real estate
|
17,919
|
-
|
-
|
-
|
-
|
17,919
|
-
|
|||||||||||||||||||||
Consumer
|
107
|
-
|
-
|
-
|
-
|
107
|
-
|
|||||||||||||||||||||
Total
|
$
|
483,381
|
$
|
360
|
$
|
92
|
$
|
1,119
|
$
|
1,571
|
$
|
484,952
|
$
|
-
|
December 31, 2015
|
||||||||||||||||||||||||||||
Current
|
30-59 Days*
Past Due
|
60-89 Days*
Past Due
|
Over 90 Days*
Past Due
|
Total
Past Due
|
Total
|
Recorded
Investment
Over 90 Days
and Accruing
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Manufactured housing
|
$
|
177,480
|
$
|
-
|
$
|
372
|
$
|
39
|
$
|
411
|
$
|
177,891
|
$
|
-
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||
Commercial real estate
|
138,004
|
-
|
-
|
612
|
612
|
138,616
|
-
|
|||||||||||||||||||||
SBA 504 1st trust deed
|
25,099
|
-
|
-
|
463
|
463
|
25,562
|
-
|
|||||||||||||||||||||
Land
|
2,895
|
-
|
-
|
-
|
-
|
2,895
|
-
|
|||||||||||||||||||||
Construction
|
12,016
|
-
|
402
|
-
|
402
|
12,418
|
-
|
|||||||||||||||||||||
Commercial
|
77,305
|
-
|
-
|
44
|
44
|
77,349
|
-
|
|||||||||||||||||||||
SBA
|
13,743
|
1
|
-
|
-
|
1
|
13,744
|
-
|
|||||||||||||||||||||
HELOC
|
10,934
|
-
|
-
|
-
|
-
|
10,934
|
-
|
|||||||||||||||||||||
Single family real estate
|
19,073
|
-
|
-
|
-
|
19,073
|
-
|
||||||||||||||||||||||
Consumer
|
123
|
-
|
-
|
-
|
-
|
123
|
-
|
|||||||||||||||||||||
Total
|
$
|
476,672
|
$
|
1
|
$
|
774
|
$
|
1,158
|
$
|
1,933
|
$
|
478,605
|
$
|
-
|
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Beginning balance
|
$
|
6,916
|
$
|
7,877
|
||||
Charge-offs
|
(11
|
)
|
(131
|
)
|
||||
Recoveries
|
161
|
497
|
||||||
Net recoveries
|
150
|
366
|
||||||
Provision (credit)
|
(247
|
)
|
(968
|
)
|
||||
Ending balance
|
$
|
6,819
|
$
|
7,275
|
For the Three Months Ended March 31,
|
||||||||||||||||||||||||||||||||
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single Family
Real Estate
|
Consumer
|
Total
|
|||||||||||||||||||||||||
2016
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Beginning balance
|
$
|
3,525
|
$
|
1,853
|
$
|
939
|
$
|
451
|
$
|
43
|
$
|
103
|
$
|
2
|
$
|
6,916
|
||||||||||||||||
Charge-offs
|
-
|
-
|
-
|
(11
|
)
|
-
|
-
|
-
|
(11
|
)
|
||||||||||||||||||||||
Recoveries
|
4
|
13
|
27
|
114
|
2
|
1
|
-
|
161
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
4
|
13
|
27
|
103
|
2
|
1
|
-
|
150
|
||||||||||||||||||||||||
Provision (credit)
|
(98
|
)
|
34
|
-
|
(178
|
)
|
(3
|
)
|
(1
|
)
|
(1
|
)
|
(247
|
)
|
||||||||||||||||||
Ending balance
|
$
|
3,431
|
$
|
1,900
|
$
|
966
|
$
|
376
|
$
|
42
|
$
|
103
|
$
|
1
|
$
|
6,819
|
||||||||||||||||
2015
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
4,032
|
$
|
1,459
|
$
|
986
|
$
|
1,066
|
$
|
140
|
$
|
192
|
$
|
2
|
$
|
7,877
|
||||||||||||||||
Charge-offs
|
(131
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
(131
|
)
|
||||||||||||||||||||||
Recoveries
|
49
|
13
|
321
|
110
|
3
|
1
|
-
|
497
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
(82
|
)
|
13
|
321
|
110
|
3
|
1
|
-
|
366
|
|||||||||||||||||||||||
Provision (credit)
|
88
|
105
|
(707
|
)
|
(298
|
)
|
(90
|
)
|
(68
|
)
|
2
|
(968
|
)
|
|||||||||||||||||||
Ending balance
|
$
|
4,038
|
$
|
1,577
|
$
|
600
|
$
|
878
|
$
|
53
|
$
|
125
|
$
|
4
|
$
|
7,275
|
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single Family
Real Estate
|
Consumer
|
Total
Loans
|
|||||||||||||||||||||||||
Loans Held for Investment as of March 31, 2016:
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
5,588
|
$
|
898
|
$
|
2,917
|
$
|
1,302
|
$
|
-
|
$
|
1,962
|
$
|
-
|
$
|
12,667
|
||||||||||||||||
Impaired loans with no allowance recorded
|
3,386
|
1,689
|
146
|
1,414
|
289
|
274
|
-
|
7,198
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
8,974
|
2,587
|
3,063
|
2,716
|
289
|
2,236
|
-
|
19,865
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
173,044
|
182,871
|
72,282
|
10,504
|
10,596
|
15,683
|
107
|
465,087
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
182,018
|
$
|
185,458
|
$
|
75,345
|
$
|
13,220
|
$
|
10,885
|
$
|
17,919
|
$
|
107
|
$
|
484,952
|
||||||||||||||||
Unpaid Principal Balance
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
5,670
|
$
|
1,002
|
$
|
2,917
|
$
|
1,425
|
$
|
-
|
$
|
1,962
|
$
|
-
|
$
|
12,976
|
||||||||||||||||
Impaired loans with no allowance recorded
|
5,072
|
3,056
|
152
|
2,040
|
308
|
418
|
-
|
11,046
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
10,742
|
4,058
|
3,069
|
3,465
|
308
|
2,380
|
-
|
24,022
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
173,044
|
182,871
|
72,282
|
10,504
|
10,596
|
15,683
|
107
|
465,087
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
183,786
|
$
|
186,929
|
$
|
75,351
|
$
|
13,969
|
$
|
10,904
|
$
|
18,063
|
$
|
107
|
$
|
489,109
|
||||||||||||||||
Related Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
514
|
$
|
7
|
$
|
166
|
$
|
3
|
$
|
-
|
$
|
18
|
$
|
-
|
$
|
708
|
||||||||||||||||
Impaired loans with no allowance recorded
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
514
|
7
|
166
|
3
|
-
|
18
|
-
|
708
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
2,917
|
1,893
|
800
|
373
|
42
|
85
|
1
|
6,111
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
3,431
|
$
|
1,900
|
$
|
966
|
$
|
376
|
$
|
42
|
$
|
103
|
$
|
1
|
$
|
6,819
|
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single Family
Real Estate
|
Consumer
|
Total
Loans
|
|||||||||||||||||||||||||
Loans Held for Investment as of December 31, 2015:
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
4,914
|
$
|
376
|
$
|
2,966
|
$
|
1,695
|
$
|
19
|
$
|
1,970
|
$
|
-
|
$
|
11,940
|
||||||||||||||||
Impaired loans with no allowance recorded
|
3,672
|
2,247
|
44
|
1,052
|
294
|
282
|
-
|
7,591
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
8,586
|
2,623
|
3,010
|
2,747
|
313
|
2,252
|
-
|
19,531
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
169,305
|
176,868
|
74,339
|
10,997
|
10,621
|
16,821
|
123
|
459,074
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
177,891
|
$
|
179,491
|
$
|
77,349
|
$
|
13,744
|
$
|
10,934
|
$
|
19,073
|
$
|
123
|
$
|
478,605
|
||||||||||||||||
Unpaid Principal Balance
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
4,964
|
$
|
439
|
$
|
2,966
|
$
|
1,909
|
$
|
19
|
$
|
1,970
|
$
|
-
|
$
|
12,267
|
||||||||||||||||
Impaired loans with no allowance recorded
|
3,975
|
2,734
|
50
|
1,553
|
309
|
352
|
-
|
8,973
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
8,939
|
3,173
|
3,016
|
3,462
|
328
|
2,322
|
-
|
21,240
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
169,305
|
176,868
|
74,339
|
10,997
|
10,621
|
16,821
|
123
|
459,074
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
178,244
|
$
|
180,041
|
$
|
77,355
|
$
|
14,459
|
$
|
10,949
|
$
|
19,143
|
$
|
123
|
$
|
480,314
|
||||||||||||||||
Related Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
483
|
$
|
3
|
$
|
45
|
$
|
25
|
$
|
-
|
$
|
17
|
$
|
-
|
$
|
573
|
||||||||||||||||
Impaired loans with no allowance recorded
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
483
|
3
|
45
|
25
|
-
|
17
|
-
|
573
|
||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
3,042
|
1,850
|
894
|
426
|
43
|
86
|
2
|
6,343
|
||||||||||||||||||||||||
Total loans held for investment
|
$
|
3,525
|
$
|
1,853
|
$
|
939
|
$
|
451
|
$
|
43
|
$
|
103
|
$
|
2
|
$
|
6,916
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Impaired loans with a specific valuation allowance under ASC 310
|
$
|
12,667
|
$
|
11,940
|
||||
Impaired loans without a specific valuation allowance under ASC 310
|
7,198
|
7,591
|
||||||
Total impaired loans
|
$
|
19,865
|
$
|
19,531
|
||||
Valuation allowance related to impaired loans
|
$
|
708
|
$
|
573
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Manufactured housing
|
$
|
8,974
|
$
|
8,586
|
||||
Commercial real estate :
|
||||||||
Commercial real estate
|
870
|
875
|
||||||
SBA 504 1st trust deed
|
1,717
|
1,748
|
||||||
Commercial
|
3,063
|
3,010
|
||||||
SBA
|
2,716
|
2,747
|
||||||
HELOC
|
289
|
313
|
||||||
Single family real estate
|
2,236
|
2,252
|
||||||
Total
|
$
|
19,865
|
$
|
19,531
|
Three Months Ended
March 31,
|
||||||||||||||||
2016
|
2015
|
|||||||||||||||
Average Investment
in Impaired Loans
|
Interest
Income
|
Average Investment
in Impaired Loans
|
Interest
Income
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Manufactured housing
|
$
|
8,785
|
$
|
185
|
$
|
7,288
|
$
|
115
|
||||||||
Commercial real estate:
|
||||||||||||||||
Commercial real estate
|
873
|
3
|
2,269
|
-
|
||||||||||||
SBA 504 1st trust deed
|
1,733
|
23
|
1,133
|
9
|
||||||||||||
Land
|
-
|
-
|
-
|
-
|
||||||||||||
Construction
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
3,038
|
42
|
3,003
|
-
|
||||||||||||
SBA
|
311
|
46
|
1,814
|
11
|
||||||||||||
HELOC
|
508
|
4
|
85
|
-
|
||||||||||||
Single family real estate
|
2,245
|
29
|
600
|
1
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Total
|
$
|
17,493
|
$
|
332
|
$
|
16,192
|
$
|
136
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Nonaccrual loans
|
$
|
6,711
|
$
|
6,956
|
||||
Government guaranteed portion of loans included above
|
$
|
1,904
|
$
|
1,943
|
||||
Troubled debt restructured loans, gross
|
$
|
14,388
|
$
|
13,741
|
||||
Loans 30 through 89 days past due with interest accruing
|
$
|
449
|
$
|
-
|
||||
Allowance for loan losses to gross loans held for investment
|
1.41
|
%
|
1.44
|
%
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Manufactured housing
|
$
|
1,460
|
$
|
1,615
|
||||
Commercial real estate:
|
||||||||
Commercial real estate
|
870
|
875
|
||||||
SBA 504 1st trust deed
|
1,453
|
1,481
|
||||||
Commercial
|
44
|
44
|
||||||
SBA
|
2,302
|
2,346
|
||||||
HELOC
|
308
|
313
|
||||||
Single family real estate
|
274
|
282
|
||||||
Consumer
|
-
|
-
|
||||||
Total
|
$
|
6,711
|
$
|
6,956
|
March 31, 2016
|
||||||||||||||||||||
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Manufactured housing
|
$
|
178,258
|
$
|
-
|
$
|
3,760
|
$
|
-
|
$
|
182,018
|
||||||||||
Commercial real estate:
|
||||||||||||||||||||
Commercial real estate
|
134,916
|
2,454
|
870
|
-
|
138,240
|
|||||||||||||||
SBA 504 1st trust deed
|
22,611
|
575
|
1,717
|
-
|
24,903
|
|||||||||||||||
Land
|
2,948
|
-
|
-
|
-
|
2,948
|
|||||||||||||||
Construction
|
19,367
|
-
|
-
|
-
|
19,367
|
|||||||||||||||
Commercial
|
64,876
|
6,762
|
3,707
|
-
|
75,345
|
|||||||||||||||
SBA
|
9,626
|
112
|
599
|
44
|
10,381
|
|||||||||||||||
HELOC
|
10,071
|
-
|
814
|
-
|
10,885
|
|||||||||||||||
Single family real estate
|
17,640
|
-
|
279
|
-
|
17,919
|
|||||||||||||||
Consumer
|
107
|
-
|
-
|
-
|
107
|
|||||||||||||||
Total, net
|
460,420
|
9,903
|
11,746
|
44
|
482,113
|
|||||||||||||||
SBA guarantee
|
-
|
-
|
2,839
|
-
|
2,839
|
|||||||||||||||
Total
|
$
|
460,420
|
$
|
9,903
|
$
|
14,585
|
$
|
44
|
$
|
484,952
|
December 31, 2015
|
||||||||||||||||||||
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Manufactured housing
|
$
|
173,971
|
$
|
-
|
$
|
3,920
|
$
|
-
|
$
|
177,891
|
||||||||||
Commercial real estate:
|
||||||||||||||||||||
Commercial real estate
|
131,857
|
2,481
|
4,278
|
-
|
138,616
|
|||||||||||||||
SBA 504 1st trust deed
|
23,231
|
583
|
1,748
|
-
|
25,562
|
|||||||||||||||
Land
|
2,895
|
-
|
-
|
-
|
2,895
|
|||||||||||||||
Construction
|
12,418
|
-
|
-
|
-
|
12,418
|
|||||||||||||||
Commercial
|
66,788
|
6,805
|
3,756
|
-
|
77,349
|
|||||||||||||||
SBA
|
10,733
|
158
|
547
|
64
|
11,502
|
|||||||||||||||
HELOC
|
10,115
|
-
|
819
|
-
|
10,934
|
|||||||||||||||
Single family real estate
|
18,678
|
-
|
395
|
-
|
19,073
|
|||||||||||||||
Consumer
|
123
|
-
|
-
|
-
|
123
|
|||||||||||||||
Total, net
|
450,809
|
10,027
|
15,463
|
64
|
476,363
|
|||||||||||||||
SBA guarantee
|
-
|
-
|
2,242
|
-
|
2,242
|
|||||||||||||||
Total
|
$
|
450,809
|
$
|
10,027
|
$
|
17,705
|
$
|
64
|
$
|
478,605
|
For the Three Months Ended March 31, 2016
|
||||||||||||||||||||||||
Number
of Loans
|
Pre-
Modification
Recorded Investment
|
Post
Modification
Recorded Investment
|
Balance of
Loans with
Rate Reduction
|
Balance of
Loans with
Term Extension
|
Effect on
Allowance for
Loan Losses
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Manufactured housing
|
8
|
$
|
743
|
$
|
743
|
$
|
743
|
$
|
743
|
$
|
49
|
|||||||||||||
Commercial
|
1
|
102
|
102
|
-
|
102
|
-
|
||||||||||||||||||
Total
|
9
|
$
|
845
|
$
|
845
|
$
|
743
|
$
|
845
|
$
|
49
|
For the Three Months Ended March 31, 2015
|
||||||||||||||||||||||||
Number
of Loans
|
Pre-
Modification
Recorded Investment
|
Post
Modification
Recorded Investment
|
Balance of
Loans with
Rate Reduction
|
Balance of
Loans with
Term Extension
|
Effect on
Allowance for
Loan Losses
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Manufactured housing
|
3
|
$
|
174
|
$
|
174
|
$
|
-
|
$
|
156
|
$
|
4
|
|||||||||||||
Total
|
3
|
$
|
174
|
$
|
174
|
$
|
-
|
$
|
156
|
$
|
4
|
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Balance, beginning of period
|
$
|
198
|
$
|
137
|
||||
Additions
|
114
|
222
|
||||||
Proceeds from dispositions
|
(138
|
)
|
(40
|
)
|
||||
Gains on sales, net
|
2
|
1
|
||||||
Balance, end of period
|
$
|
176
|
$
|
320
|
● | Level 1— Observable quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
● | Level 2— Observable quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, matrix pricing or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly in the market. |
● | Level 3— Model-based techniques where all significant assumptions are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of discounted cash flow models and similar techniques. |
Fair Value Measurements at the End of the Reporting Period Using:
|
||||||||||||||||
March 31, 2016
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Fair
Value
|
||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||
Investment securities available-for-sale
|
$
|
75
|
$
|
28,642
|
$
|
-
|
$
|
28,717
|
||||||||
Interest only strips
|
-
|
-
|
210
|
210
|
||||||||||||
Servicing assets
|
-
|
-
|
180
|
180
|
||||||||||||
$
|
75
|
$
|
28,642
|
$
|
390
|
$
|
29,107
|
Fair Value Measurements at the End of the Reporting Period Using:
|
||||||||||||||||
December 31, 2015
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Fair
Value
|
||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||
Investment securities available-for-sale
|
$
|
63
|
$
|
23,378
|
$
|
-
|
$
|
23,441
|
||||||||
Interest only strips
|
-
|
-
|
226
|
226
|
||||||||||||
Servicing assets
|
-
|
-
|
182
|
182
|
||||||||||||
$
|
63
|
$
|
23,378
|
$
|
408
|
$
|
23,849
|
Fair Value Measurements at the End of the Reporting Period Using
|
||||||||||||||||
Total
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Active
Markets for
Similar Assets
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
|||||||||||||
(in thousands)
|
||||||||||||||||
As of March 31, 2016:
|
||||||||||||||||
Impaired loans
|
$
|
4,698
|
$
|
-
|
$
|
4,698
|
$
|
-
|
||||||||
Foreclosed real estate and repossessed assets
|
176
|
-
|
176
|
-
|
||||||||||||
$
|
4,874
|
$
|
-
|
$
|
4,874
|
$
|
-
|
|||||||||
As of December 31, 2015:
|
||||||||||||||||
Impaired loans
|
$
|
4,545
|
$
|
-
|
$
|
4,545
|
$
|
-
|
||||||||
Foreclosed real estate and repossessed assets
|
198
|
-
|
198
|
-
|
||||||||||||
$
|
4,743
|
$
|
-
|
$
|
4,743
|
$
|
-
|
March 31, 2016
|
||||||||||||||||||||
Carrying
|
Fair Value
|
|||||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets:
|
(in thousands)
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
28,937
|
$
|
28,937
|
$
|
-
|
$
|
-
|
$
|
28,937
|
||||||||||
Interest-bearing deposits in other financial institutions
|
100
|
100
|
-
|
-
|
100
|
|||||||||||||||
FRB and FHLB stock
|
3,259
|
-
|
3,259
|
-
|
3,259
|
|||||||||||||||
Investment securities
|
35,633
|
75
|
35,949
|
-
|
36,024
|
|||||||||||||||
Loans held for sale
|
61,897
|
-
|
66,572
|
-
|
66,572
|
|||||||||||||||
Loans, net
|
540,162
|
-
|
535,552
|
14,653
|
550,205
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
546,075
|
-
|
546,796
|
-
|
546,796
|
|||||||||||||||
Other borrowings
|
10,500
|
-
|
10,499
|
-
|
10,499
|
December 31, 2015
|
||||||||||||||||||||
Carrying
|
Fair Value
|
|||||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets:
|
(in thousands)
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
35,519
|
$
|
35,519
|
$
|
-
|
$
|
-
|
$
|
35,519
|
||||||||||
Interest-bearing deposits in other financial institutions
|
99
|
99
|
-
|
-
|
99
|
|||||||||||||||
FRB and FHLB stock
|
3,259
|
-
|
3,259
|
-
|
3,259
|
|||||||||||||||
Investment securities
|
30,466
|
63
|
30,777
|
-
|
30,840
|
|||||||||||||||
Loans held for sale
|
64,488
|
69,262
|
69,262
|
|||||||||||||||||
Loans, net
|
472,058
|
-
|
458,726
|
13,679
|
472,405
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
544,338
|
-
|
544,350
|
-
|
544,350
|
|||||||||||||||
Other borrowings
|
10,500
|
-
|
10,489
|
-
|
10,489
|
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
Unrealized holding gains
(losses) on AFS
|
||||||||
(in thousands)
|
||||||||
Beginning balance
|
$
|
(68
|
)
|
$
|
31
|
|||
Other comprehensive income (loss) before reclassifications
|
117
|
(14
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income
|
-
|
-
|
||||||
Net current-period other comprehensive income (loss)
|
117
|
(14
|
)
|
|||||
Ending Balance
|
$
|
49
|
$
|
17
|
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands, except per share amounts)
|
||||||||
Net income
|
$
|
1,283
|
$
|
1,770
|
||||
Less: dividends and accretion on preferred stock and discount on partial redemption
|
-
|
121
|
||||||
Net income available to common stockholders
|
$
|
1,283
|
$
|
1,649
|
||||
Weighted average number of common shares outstanding - basic
|
8,169
|
8,203
|
||||||
Weighted average number of common shares outstanding - diluted
|
8,467
|
8,501
|
||||||
Earnings per share:
|
||||||||
Basic
|
$
|
0.16
|
$
|
0.20
|
||||
Diluted
|
$
|
0.15
|
$
|
0.19
|
Total
Capital
|
Tier 1
Capital
|
Common
Equity Tier 1
Capital
|
Risk-
Weighted
Assets
|
Adjusted
Average
Assets
|
Total Risk-
Based Capital
Ratio
|
Tier 1
Risk-Based
Capital Ratio
|
Common
Equity Tier 1
Ratio
|
Tier 1
Leverage
Ratio
|
||||||||||||||||||||||||||||
March 31, 2016
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||
CWB
|
$
|
71,625
|
$
|
65,150
|
$
|
65,150
|
$
|
517,311
|
$
|
617,817
|
13.85
|
%
|
12.59
|
%
|
12.59
|
%
|
10.55
|
%
|
||||||||||||||||||
Well-capitalized ratios
|
10.00
|
%
|
8.00
|
%
|
6.50
|
%
|
5.00
|
%
|
||||||||||||||||||||||||||||
Minimum capital ratios
|
8.00
|
%
|
6.00
|
%
|
4.50
|
%
|
4.00
|
%
|
||||||||||||||||||||||||||||
December 31, 2015
|
||||||||||||||||||||||||||||||||||||
CWB
|
$
|
70,199
|
$
|
63,788
|
$
|
63,788
|
$
|
512,364
|
$
|
614,331
|
13.70
|
%
|
12.45
|
%
|
12.45
|
%
|
10.38
|
%
|
||||||||||||||||||
Well-capitalized ratios
|
10.00
|
%
|
8.00
|
%
|
6.50
|
%
|
5.00
|
%
|
||||||||||||||||||||||||||||
Minimum capital ratios
|
8.00
|
%
|
6.00
|
%
|
4.50
|
%
|
4.00
|
%
|
● | general economic conditions, either nationally or locally in some or all areas in which business is conducted, or conditions in the real estate or securities markets or the banking industry which could affect liquidity in the capital markets, the volume of loan origination, deposit flows, real estate values, the levels of non-interest income and the amount of loan losses; |
● | changes in existing loan portfolio composition and credit quality, and changes in loan loss requirements; |
● | legislative or regulatory changes which may adversely affect the Company’s business, including but not limited to the impact of the Dodd-Frank Act and Consumer Protection Act and the regulations required to be promulgated thereunder; |
● | the drought in California and its impact on the economy; |
● | the Company’s success in implementing its new business initiatives, including expanding its product line, adding new branches and successfully building its brand image; |
● | changes in interest rates which may reduce net interest margin and net interest income; |
● | increases in competitive pressure among financial institutions or non-financial institutions; |
● | technological changes which may be more difficult to implement or more expensive than anticipated; |
● | changes in borrowing facilities, capital markets and investment opportunities which may adversely affect the business; |
● | changes in accounting principles, policies or guidelines which may cause conditions to be perceived differently; |
● | litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, which may delay the occurrence or non-occurrence of events longer than anticipated; |
● | the ability to originate loans with attractive terms and acceptable credit quality; |
● | the ability to attract and retain key members of management; |
● | the ability to realize cost efficiencies; and |
● | a failure or breach of our operational or security systems or infrastructure. |
● | Net income of $1.3 million in 1Q16 compared to net income of $1.8 million in 1Q15. |
● | Net interest margin for 1Q16 was 4.45% compared to 4.65% for 1Q15. |
● | Total loans increased slightly to $540.2 million at March 31, 2016 compared to $536.5 million at December 31, 2015. |
● | Total deposits increased slightly to $546.1 million at March 31, 2016 from $544.3 at December 31, 2015. |
● | Net nonaccrual loans decreased 54.3% to $4.8 million at March 31, 2016, compared to $10.5 million at March 31, 2015, and down slightly from $5.0 million at December 31, 2015. |
● | Allowance for loan losses was $6.8 million at March 31, 2016, or 1.41% of total loans held for investment compared to 1.44% at December 31, 2015 and 1.69% at March 31, 2015. |
● | Most key asset quality ratios improved for Q1 2016 compared to Q1 2015. Nonaccrual loans and net other assets acquired through foreclosure to total assets improved to 0.80% from 1.89% in Q1 2015 and net nonaccrual loans to gross loans improved to 0.88% at the end of Q1 2016 compared to 2.13% at the end of Q1 2015. |
● | Received approvals to open full-service branch office in San Luis Obispo and to relocate its existing full-service branch in Santa Maria to a more desirable business location. |
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands, except per share amounts)
|
||||||||
Net income available to common stockholders
|
$
|
1,283
|
$
|
1,649
|
||||
Basic earnings per share
|
0.16
|
0.20
|
||||||
Diluted earnings per share
|
0.15
|
0.19
|
||||||
Total assets
|
622,755
|
572,271
|
||||||
Gross loans
|
546,981
|
493,076
|
||||||
Total deposits
|
546,075
|
495,670
|
||||||
Total stockholders' equity
|
62,439
|
67,503
|
||||||
Book value per common share
|
7.71
|
7.50
|
||||||
Net interest margin
|
4.45
|
%
|
4.65
|
%
|
||||
Return on average assets
|
0.83
|
%
|
1.27
|
%
|
||||
Return on average stockholders' equity
|
8.23
|
%
|
10.68
|
%
|
Three Months Ended
March 31,
|
Increase
|
|||||||||||
2016
|
2015
|
(Decrease)
|
||||||||||
(in thousands, except per share amounts)
|
||||||||||||
Consolidated Income Statement Data:
|
||||||||||||
Interest income
|
$
|
7,444
|
$
|
7,017
|
$
|
427
|
||||||
Interest expense
|
723
|
666
|
57
|
|||||||||
Net interest income
|
6,721
|
6,351
|
370
|
|||||||||
Provision (credit) for loan losses
|
(247
|
)
|
(968
|
)
|
721
|
|||||||
Net interest income after provision for loan losses
|
6,968
|
7,319
|
(351
|
)
|
||||||||
Non-interest income
|
579
|
480
|
99
|
|||||||||
Non-interest expenses
|
5,336
|
4,771
|
565
|
|||||||||
Income before income taxes
|
2,211
|
3,028
|
(817
|
)
|
||||||||
Provision for income taxes
|
928
|
1,258
|
(330
|
)
|
||||||||
Net income
|
$
|
1,283
|
$
|
1,770
|
$
|
(487
|
)
|
|||||
Dividends on preferred stock
|
-
|
140
|
(140
|
)
|
||||||||
Discount on partial redemption of preferred stock
|
-
|
(19
|
)
|
19
|
||||||||
Net income available to common stockholders
|
$
|
1,283
|
$
|
1,649
|
$
|
(366
|
)
|
|||||
Income per share - basic
|
$
|
0.16
|
$
|
0.20
|
$
|
(0.04
|
)
|
|||||
Income per share - diluted
|
$
|
0.15
|
$
|
0.19
|
$
|
(0.04
|
)
|
Three Months Ended March 31,
|
||||||||||||||||||||||||
2016
|
2015
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Cost
(2)
|
Average
Balance
|
Interest
|
Average
Yield/Cost
(2)
|
|||||||||||||||||||
Interest-Earning Assets
|
(in thousands)
|
|||||||||||||||||||||||
Federal funds sold and interest-earning deposits
|
$
|
28,741
|
$
|
41
|
0.57
|
%
|
$
|
26,773
|
$
|
20
|
0.30
|
%
|
||||||||||||
Investment securities
|
35,576
|
228
|
2.58
|
%
|
33,208
|
285
|
3.48
|
%
|
||||||||||||||||
Loans (1)
|
543,555
|
7,175
|
5.31
|
%
|
493,959
|
6,712
|
5.51
|
%
|
||||||||||||||||
Total earnings assets
|
607,872
|
7,444
|
4.93
|
%
|
553,940
|
7,017
|
5.14
|
%
|
||||||||||||||||
Nonearning Assets
|
||||||||||||||||||||||||
Cash and due from banks
|
2,684
|
1,843
|
||||||||||||||||||||||
Allowance for loan losses
|
(6,961
|
)
|
(7,923
|
)
|
||||||||||||||||||||
Other assets
|
14,688
|
16,476
|
||||||||||||||||||||||
Total assets
|
$
|
618,283
|
$
|
564,336
|
||||||||||||||||||||
Interest-Bearing Liabilities
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
249,988
|
228
|
0.37
|
%
|
268,792
|
229
|
0.35
|
%
|
||||||||||||||||
Savings deposits
|
13,925
|
27
|
0.78
|
%
|
15,177
|
36
|
0.96
|
%
|
||||||||||||||||
Time deposits
|
205,628
|
396
|
0.77
|
%
|
136,030
|
340
|
1.01
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
469,541
|
651
|
0.56
|
%
|
419,999
|
605
|
0.58
|
%
|
||||||||||||||||
Other borrowings
|
10,500
|
72
|
2.76
|
%
|
12,000
|
61
|
2.06
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
480,041
|
723
|
0.61
|
%
|
431,999
|
666
|
0.63
|
%
|
||||||||||||||||
Noninterest-Bearing Liabilities
|
||||||||||||||||||||||||
Noninterest-bearing demand deposits
|
70,998
|
61,532
|
||||||||||||||||||||||
Other liabilities
|
4,566
|
3,587
|
||||||||||||||||||||||
Stockholders' equity
|
62,678
|
67,218
|
||||||||||||||||||||||
Total Liabilities and Stockholders' Equity
|
$
|
618,283
|
$
|
564,336
|
||||||||||||||||||||
Net interest income and margin (3)
|
$
|
6,721
|
4.45
|
%
|
$
|
6,351
|
4.65
|
%
|
||||||||||||||||
Net interest spread (4)
|
4.32
|
%
|
4.51
|
%
|
(1) | Includes nonaccrual loans. |
(2) | Annualized. |
(3) | Net interest margin is computed by dividing net interest income by total average earning assets. |
(4) | Net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities. |
Three Months Ended March 31,
|
||||||||||||
2016 versus 2015
|
||||||||||||
Increase (Decrease)
Due to Changes in (1)
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Interest income:
|
||||||||||||
Investment securities
|
$
|
15
|
$
|
(72
|
)
|
$
|
(57
|
)
|
||||
Federal funds sold and other
|
3
|
18
|
21
|
|||||||||
Loans, net
|
655
|
(192
|
)
|
463
|
||||||||
Total interest income
|
673
|
(246
|
)
|
427
|
||||||||
Interest expense:
|
||||||||||||
Interest checking
|
(17
|
)
|
16
|
(1
|
)
|
|||||||
Savings
|
(2
|
)
|
(7
|
)
|
(9
|
)
|
||||||
Time deposits
|
133
|
(77
|
)
|
56
|
||||||||
Other borrowings
|
(10
|
)
|
21
|
11
|
||||||||
Total interest expense
|
104
|
(47
|
)
|
57
|
||||||||
Net increase
|
$
|
569
|
$
|
(199
|
)
|
$
|
370
|
(1) | Changes due to both volume and rate have been allocated to volume changes. |
For the Three Months Ended March 31,
|
||||||||||||||||||||||||||||||||
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single Family
Real Estate
|
Consumer
|
Total
|
|||||||||||||||||||||||||
2016
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Beginning balance
|
$
|
3,525
|
$
|
1,853
|
$
|
939
|
$
|
451
|
$
|
43
|
$
|
103
|
$
|
2
|
$
|
6,916
|
||||||||||||||||
Charge-offs
|
-
|
-
|
-
|
(11
|
)
|
-
|
-
|
-
|
(11
|
)
|
||||||||||||||||||||||
Recoveries
|
4
|
13
|
27
|
114
|
2
|
1
|
-
|
161
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
4
|
13
|
27
|
103
|
2
|
1
|
-
|
150
|
||||||||||||||||||||||||
Provision (credit)
|
(98
|
)
|
34
|
-
|
(178
|
)
|
(3
|
)
|
(1
|
)
|
(1
|
)
|
(247
|
)
|
||||||||||||||||||
Ending balance
|
$
|
3,431
|
$
|
1,900
|
$
|
966
|
$
|
376
|
$
|
42
|
$
|
103
|
$
|
1
|
$
|
6,819
|
||||||||||||||||
2015
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
4,032
|
$
|
1,459
|
$
|
986
|
$
|
1,066
|
$
|
140
|
$
|
192
|
$
|
2
|
$
|
7,877
|
||||||||||||||||
Charge-offs
|
(131
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
(131
|
)
|
||||||||||||||||||||||
Recoveries
|
49
|
13
|
321
|
110
|
3
|
1
|
-
|
497
|
||||||||||||||||||||||||
Net (charge-offs) recoveries
|
(82
|
)
|
13
|
321
|
110
|
3
|
1
|
-
|
366
|
|||||||||||||||||||||||
Provision (credit)
|
88
|
105
|
(707
|
)
|
(298
|
)
|
(90
|
)
|
(68
|
)
|
2
|
(968
|
)
|
|||||||||||||||||||
Ending balance
|
$
|
4,038
|
$
|
1,577
|
$
|
600
|
$
|
878
|
$
|
53
|
$
|
125
|
$
|
4
|
$
|
7,275
|
Three Months Ended
March 31,
|
Increase
|
|||||||||||
2016
|
2015
|
(Decrease)
|
||||||||||
(in thousands)
|
||||||||||||
Other loan fees
|
$
|
275
|
$
|
175
|
$
|
100
|
||||||
Document processing fees
|
115
|
92
|
23
|
|||||||||
Service charges
|
90
|
73
|
17
|
|||||||||
Other
|
99
|
140
|
(41
|
)
|
||||||||
Total non-interest income
|
$
|
579
|
$
|
480
|
$
|
99
|
Three Months Ended
March 31,
|
Increase
|
|||||||||||
2016
|
2015
|
(Decrease)
|
||||||||||
(in thousands)
|
||||||||||||
Salaries and employee benefits
|
$
|
3,452
|
$
|
3,115
|
$
|
337
|
||||||
Occupancy, net
|
486
|
445
|
41
|
|||||||||
Professional services
|
179
|
248
|
(69
|
)
|
||||||||
Loan servicing and collection
|
179
|
89
|
90
|
|||||||||
Data processing
|
171
|
119
|
52
|
|||||||||
Depreciation
|
149
|
91
|
58
|
|||||||||
FDIC assessment
|
97
|
71
|
26
|
|||||||||
Advertising and marketing
|
81
|
80
|
1
|
|||||||||
Stock based compensation
|
80
|
42
|
38
|
|||||||||
Other
|
462
|
471
|
(9
|
)
|
||||||||
Total non-interest expenses
|
$
|
5,336
|
$
|
4,771
|
$
|
565
|
March 31,
2016
|
December 31,
2015
|
Increase
(Decrease)
|
Percent
Increase
(Decrease)
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Cash and cash equivalents
|
$
|
28,937
|
$
|
35,519
|
$
|
(6,582
|
)
|
(18.5
|
)%
|
|||||||
Investment securities available-for-sale
|
28,717
|
23,441
|
5,276
|
22.5
|
%
|
|||||||||||
Investment securities held-to-maturity
|
6,916
|
7,025
|
(109
|
)
|
(1.6
|
)%
|
||||||||||
Loans - held for sale
|
61,897
|
64,488
|
(2,591
|
)
|
(4.0
|
)%
|
||||||||||
Loans - held for investment, net
|
478,265
|
472,058
|
6,207
|
1.3
|
%
|
|||||||||||
Total assets
|
622,755
|
621,213
|
1,542
|
0.2
|
%
|
|||||||||||
Total deposits
|
546,075
|
544,338
|
1,737
|
0.3
|
%
|
|||||||||||
Other borrowings
|
10,500
|
10,500
|
-
|
0.0
|
%
|
|||||||||||
Total stockholder's equity
|
62,439
|
61,944
|
495
|
0.8
|
%
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Manufactured housing
|
$
|
182,018
|
$
|
177,891
|
||||
Commercial real estate
|
185,458
|
179,491
|
||||||
Commercial
|
75,345
|
77,349
|
||||||
SBA
|
13,220
|
13,744
|
||||||
HELOC
|
10,885
|
10,934
|
||||||
Single family real estate
|
17,919
|
19,073
|
||||||
Consumer
|
107
|
123
|
||||||
484,952
|
478,605
|
|||||||
Allowance for loan losses
|
(6,819
|
)
|
(6,916
|
)
|
||||
Deferred costs, net
|
318
|
560
|
||||||
Discount on SBA loans
|
(186
|
)
|
(191
|
)
|
||||
Total loans held for investment, net
|
$
|
478,265
|
$
|
472,058
|
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Nonaccrual loans (net of government guaranteed portion)
|
$
|
4,807
|
$
|
10,482
|
||||
Troubled debt restructured loans, gross
|
14,388
|
9,462
|
||||||
Nonaccrual loans (net of government guaranteed portion) to gross loans
|
0.88
|
%
|
2.13
|
%
|
||||
Net charge-offs (recoveries) (annualized) to average loans
|
(0.11)
|
%
|
(0.30)
|
%
|
||||
Allowance for loan losses to nonaccrual loans (net of government guaranteed portion)
|
(141.86)
|
%
|
69.40
|
%
|
||||
Allowance for loan losses to gross loans
|
1.25
|
%
|
1.48
|
%
|
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Total nonaccrual loans
|
$
|
6,711
|
$
|
6,956
|
||||
Government guaranteed portion of loans included above
|
(1,904
|
)
|
(1,943
|
)
|
||||
Total nonaccrual loans, without guarantees
|
$
|
4,807
|
$
|
5,013
|
||||
Troubled debt restructured loans, gross
|
$
|
14,388
|
$
|
13,741
|
||||
Loans 30 through 89 days past due with interest accruing
|
$
|
449
|
$
|
-
|
||||
Allowance for loan losses to gross loans held for investment
|
1.41
|
%
|
1.44
|
%
|
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single Family
Real Estate
|
Consumer
|
Total
Loans
|
|||||||||||||||||||||||||
Impaired Loans as of March 31, 2016:
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
5,588
|
$
|
898
|
$
|
2,917
|
$
|
1,302
|
$
|
-
|
$
|
1,962
|
$
|
-
|
$
|
12,667
|
||||||||||||||||
Impaired loans with no allowance recorded
|
3,386
|
1,689
|
146
|
1,414
|
289
|
274
|
-
|
7,198
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
8,974
|
2,587
|
3,063
|
2,716
|
289
|
2,236
|
-
|
19,865
|
||||||||||||||||||||||||
Related Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
514
|
7
|
166
|
3
|
-
|
18
|
-
|
708
|
||||||||||||||||||||||||
Impaired loans with no allowance recorded
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
514
|
7
|
166
|
3
|
-
|
18
|
-
|
708
|
||||||||||||||||||||||||
Total impaired loans, net
|
$
|
8,460
|
$
|
2,580
|
$
|
2,897
|
$
|
2,713
|
$
|
289
|
$
|
2,218
|
$
|
-
|
$
|
19,157
|
Manufactured
Housing
|
Commercial
Real Estate
|
Commercial
|
SBA
|
HELOC
|
Single Family
Real Estate
|
Consumer
|
Total
Loans
|
|||||||||||||||||||||||||
Impaired Loans as of December 31, 2015:
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
$
|
4,914
|
$
|
376
|
$
|
2,966
|
$
|
1,695
|
$
|
19
|
$
|
1,970
|
$
|
-
|
$
|
11,940
|
||||||||||||||||
Impaired loans with no allowance recorded
|
3,672
|
2,247
|
44
|
1,052
|
294
|
282
|
-
|
7,591
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
8,586
|
2,623
|
3,010
|
2,747
|
313
|
2,252
|
-
|
19,531
|
||||||||||||||||||||||||
Related Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded
|
483
|
3
|
45
|
25
|
-
|
17
|
-
|
573
|
||||||||||||||||||||||||
Impaired loans with no allowance recorded
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total loans individually evaluated for impairment
|
483
|
3
|
45
|
25
|
-
|
17
|
-
|
573
|
||||||||||||||||||||||||
Total impaired loans, net
|
$
|
8,103
|
$
|
2,620
|
$
|
2,965
|
$
|
2,722
|
$
|
313
|
$
|
2,235
|
$
|
-
|
$
|
18,958
|
At March 31, 2016
|
At December 31, 2015
|
|||||||||||||||||||||||
Nonaccrual
Balance
|
%
|
Percent of
Total Loans
|
Nonaccrual
Balance
|
%
|
Percent of
Total Loans
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Manufactured housing
|
$
|
1,460
|
21.76
|
%
|
0.14
|
%
|
$
|
1,615
|
23.22
|
%
|
0.30
|
%
|
||||||||||||
Commercial real estate
|
2,323
|
34.61
|
%
|
0.23
|
%
|
2,356
|
33.87
|
%
|
0.43
|
%
|
||||||||||||||
Commercial
|
44
|
0.66
|
%
|
0.00
|
%
|
44
|
0.63
|
%
|
0.01
|
%
|
||||||||||||||
SBA
|
2,302
|
34.30
|
%
|
0.22
|
%
|
2,346
|
33.73
|
%
|
0.43
|
%
|
||||||||||||||
HELOC
|
308
|
4.59
|
%
|
0.03
|
%
|
313
|
4.50
|
%
|
0.06
|
%
|
||||||||||||||
Single family real estate
|
274
|
4.08
|
%
|
0.03
|
%
|
282
|
4.05
|
%
|
0.05
|
%
|
||||||||||||||
Consumer
|
-
|
0.00
|
%
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Total nonaccrual loans
|
$
|
6,711
|
100.00
|
%
|
0.65
|
%
|
$
|
6,956
|
100.00
|
%
|
1.28
|
%
|
Three Months Ended March 31,
|
||||||||
2016
|
2015
|
|||||||
Allowance for loan losses:
|
(in thousands)
|
|||||||
Balance at beginning of period
|
$
|
6,916
|
$
|
7,877
|
||||
Provisions charged to operating expenses:
|
||||||||
Manufactured housing
|
(98
|
)
|
88
|
|||||
Commercial real estate
|
34
|
105
|
||||||
Commercial
|
-
|
(707
|
)
|
|||||
SBA
|
(178
|
)
|
(298
|
)
|
||||
HELOC
|
(3
|
)
|
(90
|
)
|
||||
Single family real estate
|
(1
|
)
|
(68
|
)
|
||||
Consumer
|
(1
|
)
|
2
|
|||||
Total Provision (credit)
|
(247
|
)
|
(968
|
)
|
||||
Recoveries of loans previously charged-off:
|
||||||||
Manufactured housing
|
4
|
49
|
||||||
Commercial real estate
|
13
|
13
|
||||||
Commercial
|
27
|
321
|
||||||
SBA
|
114
|
110
|
||||||
HELOC
|
2
|
3
|
||||||
Single family real estate
|
1
|
1
|
||||||
Consumer
|
-
|
-
|
||||||
Total recoveries
|
161
|
497
|
||||||
Loans charged-off:
|
||||||||
Manufactured housing
|
-
|
131
|
||||||
Commercial real estate
|
-
|
-
|
||||||
Commercial
|
-
|
-
|
||||||
SBA
|
11
|
-
|
||||||
HELOC
|
-
|
-
|
||||||
Single family real estate
|
-
|
-
|
||||||
Consumer
|
-
|
-
|
||||||
Total charged-off
|
11
|
131
|
||||||
Net charge-offs (recoveries)
|
(150
|
)
|
(366
|
)
|
||||
Balance at end of period
|
$
|
6,819
|
$
|
7,275
|
March 31, 2016
|
||||||||||||||||
Number
of Loans
|
Loan
Balance (1)
|
Percent
|
Percent
of Total
Loans
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Manufactured housing
|
25
|
$
|
1,050
|
6.03
|
%
|
0.19
|
%
|
|||||||||
Commercial real estate
|
6
|
4,139
|
23.76
|
%
|
0.76
|
%
|
||||||||||
Commercial
|
10
|
9,480
|
54.41
|
%
|
1.73
|
%
|
||||||||||
SBA
|
12
|
2,242
|
12.87
|
%
|
0.41
|
%
|
||||||||||
HELOC
|
2
|
506
|
2.90
|
%
|
0.09
|
%
|
||||||||||
Single family real estate
|
1
|
5
|
0.03
|
%
|
0.00
|
%
|
||||||||||
Total
|
56
|
$
|
17,422
|
100.00
|
%
|
3.18
|
%
|
(1) | Of the $17.4 million of potential problem loans, $3.8 million are guaranteed by government agencies. |
December 31, 2015
|
||||||||||||||||
Number
of Loans
|
Loan
Balance (1)
|
Percent
|
Percent
of Total
Loans
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Manufactured housing
|
24
|
$
|
1,044
|
6.05
|
%
|
0.19
|
%
|
|||||||||
Commercial real estate
|
9
|
7,519
|
43.55
|
%
|
1.38
|
%
|
||||||||||
Commercial
|
10
|
7,551
|
43.74
|
%
|
1.39
|
%
|
||||||||||
SBA
|
14
|
464
|
2.69
|
%
|
0.09
|
%
|
||||||||||
HELOC
|
3
|
573
|
3.32
|
%
|
0.11
|
%
|
||||||||||
Single family real estate
|
2
|
113
|
0.65
|
%
|
0.02
|
%
|
||||||||||
Total
|
62
|
$
|
17,264
|
100.00
|
%
|
3.18
|
%
|
(1) | Of the $17.3 million of potential problem loans, $3.2 million are guaranteed by government agencies. |
March 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
U.S. government agency notes
|
$
|
11,296
|
$
|
11,147
|
||||
U.S. government agency mortgage backed securities ("MBS")
|
6,916
|
7,025
|
||||||
U.S. government agency collateralized mortgage obligations ("CMO")
|
17,346
|
12,231
|
||||||
Equity securities: Farmer Mac class A stock
|
75
|
63
|
||||||
$
|
35,633
|
$
|
30,466
|
Three Months Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Balance, beginning of period
|
$
|
198
|
$
|
137
|
||||
Additions
|
114
|
222
|
||||||
Proceeds from dispositions
|
(138
|
)
|
(40
|
)
|
||||
Gains on sales, net
|
2
|
1
|
||||||
Balance, end of period
|
$
|
176
|
$
|
320
|
March 31,
|
December 31,
|
Increase
|
Percent
Increase
|
|||||||||||||
2016
|
2015
|
(Decrease)
|
(Decrease)
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Non-interest bearing demand deposits
|
$
|
70,587
|
$
|
76,469
|
$
|
(5,882
|
)
|
(7.7
|
)%
|
|||||||
Interest-bearing demand deposits
|
250,404
|
250,509
|
(105
|
)
|
(0.0
|
)%
|
||||||||||
Savings
|
14,294
|
13,690
|
604
|
4.4
|
%
|
|||||||||||
Certificates of deposit ($250,000 or more)
|
67,995
|
66,722
|
1,273
|
1.9
|
%
|
|||||||||||
Other certificates of deposit
|
142,795
|
136,948
|
5,847
|
4.3
|
%
|
|||||||||||
Total deposits
|
$
|
546,075
|
$
|
544,338
|
$
|
1,737
|
0.3
|
%
|
Liquidity and Capital Resources
|
Total
Capital
|
Tier 1
Capital
|
Common
Equity Tier 1
Capital
|
Risk-
Weighted
Assets
|
Adjusted
Average
Assets
|
Total Risk-
Based Capital
Ratio
|
Tier 1
Risk-Based
Capital Ratio
|
Common
Equity Tier 1
Ratio
|
Tier 1
Leverage
Ratio
|
||||||||||||||||||||||||||||
March 31, 2016
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||
CWB
|
$
|
71,625
|
$
|
65,150
|
$
|
65,150
|
$
|
517,311
|
$
|
617,817
|
13.85
|
%
|
12.59
|
%
|
12.59
|
%
|
10.55
|
%
|
||||||||||||||||||
Well-capitalized ratios
|
10.00
|
%
|
8.00
|
%
|
6.50
|
%
|
5.00
|
%
|
||||||||||||||||||||||||||||
Minimum capital ratios
|
8.00
|
%
|
6.00
|
%
|
4.50
|
%
|
4.00
|
%
|
||||||||||||||||||||||||||||
December 31, 2015
|
||||||||||||||||||||||||||||||||||||
CWB
|
$
|
70,199
|
$
|
63,788
|
$
|
63,788
|
$
|
512,364
|
$
|
614,331
|
13.70
|
%
|
12.45
|
%
|
12.45
|
%
|
10.38
|
%
|
||||||||||||||||||
Well-capitalized ratios
|
10.00
|
%
|
8.00
|
%
|
6.50
|
%
|
5.00
|
%
|
||||||||||||||||||||||||||||
Minimum capital ratios
|
8.00
|
%
|
6.00
|
%
|
4.50
|
%
|
4.00
|
%
|
Supervision and Regulation
|
Period
|
Total Number of Shares
Purchased (a)
|
Average Price Paid per
Share
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs (b)
|
Maximum Number (or
Approximate Dollar
Value) of Shares that
May Yet be Purchased
Under the Plans or
Programs (b)
|
||||||||||||
January 1 – 31
|
-
|
-
|
-
|
-
|
||||||||||||
February 1 – 29
|
54,253
|
$
|
6.9815
|
54,253
|
$
|
2,592,043
|
||||||||||
March 1 – 31
|
53,000
|
$
|
7.015
|
53,000
|
$
|
2,218,591
|
||||||||||
Total
|
107,000
|
$
|
6.998
|
107,253
|
$
|
2,218,591
|
(a) | Shares purchased other than through a publicly announced plan or program and the nature of the transaction. |
(b) | On August 27, 2015, the Board of Directors of the Company authorized the repurchase of up to $3.0 million of the outstanding common stock of the Company. The repurchase program is expected to be executed over no more than a two-year period. Stock repurchases may be made from time to time on the open market or through privately negotiated transactions. As of March 31, 2016, approximately $2.2 million remains authorized for repurchase. |
Exhibit No.
|
||
31.1
|
Certification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) or Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
|
|
31.2
|
Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a) or Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
|
|
32.1*
|
Certification of Chief Executive Officer and Chief Financial Officer of the Registrant pursuant to Rule 13a-14(b) or Rule 15d-14(b), promulgated under the Securities Exchange Act of 1934, as Amended, and 18 U.S.C. 1350.
|
101INS – XBRL Instance Document
|
|
101SCH –XBRL Taxonomy Extension Schema Document
|
|
101CAL – XBRL Taxonomy Calculation Linkbase Document
|
|
101DEF – XBRL Taxonomy Extension Definition Linkbase Document
|
|
101LAB – XBRL Taxonomy Label Linkbase Document
|
|
101PRE – XBRL Taxonomy Presentation Linkbase Document
|
*
|
This certification is furnished to, but shall not be deemed filed, with the Commission. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates it by reference.
|
COMMUNITY WEST BANCSHARES
|
|
(Registrant)
|
|
Date: May 6, 2016
|
BY: /s/ Charles G. Baltuskonis
|
Charles G. Baltuskonis
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
On Behalf of Registrant and as a Duly Authorized Officer
|
|
and as Principal Financial and Accounting Officer
|
Exhibit
Number |
|
Certification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) or Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
|
|
Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a) or Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
|
|
Certification of Chief Executive Officer and Chief Financial Officer of the Registrant pursuant to Rule 13a-14(b) or Rule 15d-14(b), promulgated under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. 1350.
|
|
101
|
101INS – XBRL Instance Document
|
101SCH –XBRL Taxonomy Extension Schema Document
|
|
101CAL – XBRL Taxonomy Calculation Linkbase Document
|
|
101DEF – XBRL Taxonomy Extension Definition Linkbase Document
|
|
101LAB – XBRL Taxonomy Label Linkbase Document
|
|
101PRE – XBRL Taxonomy Presentation Linkbase Document
|
* | This certification is furnished to, but shall not be deemed filed, with the Commission. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates it by reference. |
1. | I have reviewed this quarterly report on Form 10-Q of Community West Bancshares; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) 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 we 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 quarterly report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Martin E. Plourd
|
|
Martin E. Plourd
|
|
President and Chief Executive Officer
|
|
Community West Bancshares
|
|
May 6, 2016
|
1. | I have reviewed this quarterly report on Form 10-Q of Community West Bancshares; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) 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 we 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 quarterly report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Charles G. Baltuskonis
|
|
Charles G. Baltuskonis
|
|
Executive Vice President and Chief Financial Officer
|
|
Community West Bancshares
|
|
May 6, 2016
|
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant as of and for the periods presented in the Report. |
/s/ Martin E. Plourd
|
|
Martin E. Plourd
|
|
President and Chief Executive Officer
|
|
/s/ Charles G. Baltuskonis
|
|
Charles G. Baltuskonis
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
May 6, 2016
|
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 29, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | COMMUNITY WEST BANCSHARES / | |
Entity Central Index Key | 0001051343 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 8,103,505 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets: | ||
Investment securities available-for-sale, amortized cost | $ 28,634 | $ 23,558 |
Investment securities held-to-maturity, fair value | 7,307 | 7,399 |
Loans: | ||
Held for investment, allowance for loan losses | $ 6,819 | $ 6,916 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 8,103,105 | 8,205,858 |
Common stock, shares outstanding (in shares) | 8,103,105 | 8,205,858 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ||
Net income | $ 1,283 | $ 1,770 |
Other comprehensive income (loss), net: | ||
Unrealized income (loss) on securities available-for-sale (AFS), net (tax effect of ($83) and $10 for each respective period presented) | 117 | (14) |
Net other comprehensive income (loss) | 117 | (14) |
Comprehensive income | $ 1,400 | $ 1,756 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Other comprehensive income (loss), net: | ||
Unrealized income (loss) on securities available-for-sale (AFS), tax effect | $ (83) | $ 10 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands |
Common Stock [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Retained Earnings [Member] |
Total |
---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 1,770 | |||
Other comprehensive income, net | (14) | |||
Balance at Dec. 31, 2015 | $ 42,355 | $ (68) | $ 19,657 | $ 61,944 |
Balance (in shares) at Dec. 31, 2015 | 8,206,000 | 8,205,858 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 1,283 | $ 1,283 |
Exercise of stock options | $ 15 | 0 | 0 | 15 |
Exercise of stock options (in shares) | 5,000 | |||
Stock based compensation | $ 80 | 0 | 0 | 80 |
Stock based compensation (in shares) | 0 | |||
Common stock repurchases | $ (754) | 0 | 0 | (754) |
Common stock repurchases (in shares) | (107,000) | |||
Dividends on common stock | $ 0 | 0 | (246) | (246) |
Other comprehensive income, net | 0 | 117 | 0 | 117 |
Balance at Mar. 31, 2016 | $ 41,696 | $ 49 | $ 20,694 | $ 62,439 |
Balance (in shares) at Mar. 31, 2016 | 8,104,000 | 8,103,105 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Community West Bancshares (“CWBC”), incorporated under the laws of the state of California, is a bank holding company providing full service banking through its wholly-owned subsidiary Community West Bank, N.A. (“CWB” or the “Bank”). These entities are collectively referred to herein as the “Company.” Basis of Presentation The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States (“GAAP”) and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiary are included in these Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, the fair value of other real estate owned and the fair value of securities available for sale. Although Management believes these estimates to be reasonably accurate, actual amounts may differ. In the opinion of Management, all adjustments considered necessary have been reflected in the financial statements during their preparation. Interim Financial Information The accompanying unaudited consolidated financial statements as of and for the three months ended March 31, 2016 and 2015 have been prepared in a condensed format, and therefore do not include all of the information and footnotes required by GAAP for complete financial statements. These statements have been prepared on a basis that is substantially consistent with the accounting principles applied to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the Company’s audited consolidated financial statements. Reclassifications Certain amounts in the consolidated financial statements as of December 31, 2015 and for the three months ended March 31, 2015 have been reclassified to conform to the current presentation. The reclassifications have no effect on net income, comprehensive income or stockholders’ equity as previously reported. Loans Held For Sale Loans which are originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value determined on an aggregate basis. Valuation adjustments, if any, are recognized through a valuation allowance by charges to lower of cost or fair value provision. Loans held for sale are mostly comprised of SBA and commercial agriculture. In the third quarter of 2015, the Company announced its exit from originating single family residential loans for sale. The Company did not incur any lower of cost or fair value provision in the three months ended March 31, 2016 and 2015. Loans Held for Investment and Interest and Fees from Loans Loans are recognized at the principal amount outstanding, net of unearned income, loan participations and amounts charged off. Unearned income includes deferred loan origination fees reduced by loan origination costs. Unearned income on loans is amortized to interest income over the life of the related loan using the level yield method. Interest income on loans is accrued daily using the effective interest method and recognized over the terms of the loans. Loan fees collected for the origination of loans less direct loan origination costs (net deferred loan fees) are amortized over the contractual life of the loan through interest income. If the loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of unearned fees, deferred fees and costs and premiums and discounts paid on purchased loans are accounted for though interest income. Nonaccrual loans: For all loan types, when a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. Generally, the Company places loans in a nonaccrual status and ceases recognizing interest income when the loan has become delinquent by more than 90 days or when Management determines that the full repayment of principal and collection of interest is unlikely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent if they are well secured by collateral and in the process of collection. Other personal loans are typically charged off no later than 180 days delinquent. For all loan types, when a loan is placed on nonaccrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed. Subsequent payments received from the customer are applied to principal and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. The Company occasionally recognizes income on a cash basis for non-accrual loans in which the collection of the remaining principal balance is not in doubt. Impaired loans: A loan is considered impaired when, based on current information; it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays or payment shortfalls on a case-by-case basis. When determining the possibility of impairment, management considers the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. For collateral-dependent loans, the Company uses the fair value of collateral method to measure impairment. The collateral-dependent loans that recognize impairment are charged down to the fair value less costs to sell. All other loans are measured for impairment either based on the present value of future cash flows or the loan’s observable market price. Troubled debt restructured loan (“TDR”): A TDR is a loan on which the Company, for reasons related to the borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. These concessions included but are not limited to term extensions, rate reductions and principal reductions. Forgiveness of principal is rarely granted and modifications for all classes of loans are predominately term extensions. A TDR loan is also considered impaired. Generally, a loan that is modified at an effective market rate of interest may no longer be disclosed as a troubled debt restructuring in years subsequent to the restructuring if it is not impaired based on the terms specified by the restructuring agreement. Allowance for Loan Losses and Provision for Loan Losses The Company maintains a detailed, systematic analysis and procedural discipline to determine the amount of the allowance for loan losses (“ALL”). The ALL is based on estimates and is intended to be appropriate to provide for probable losses inherent in the loan portfolio. This process involves deriving probable loss estimates that are based on migration analysis and historical loss rates, in addition to qualitative factors that are based on management’s judgment. The migration analysis and historical loss rate calculations are based on the annualized loss rates utilizing a twelve-quarter loss history. Migration analysis is utilized for the Commercial Real Estate (“CRE”), Commercial, Commercial Agriculture, Small Business Administration (“SBA”), Home Equity Line of Credit (“HELOC”), Single Family Residential, and Consumer portfolios. The historical loss rate method is utilized primarily for the Manufactured Housing portfolio. The migration analysis takes into account the risk rating of loans that are charged off in each loan category. Loans that are considered Doubtful are typically charged off. The following is a description of the characteristics of loan ratings. Loan ratings are reviewed as part of our normal loan monitoring process, but, at a minimum, updated on an annual basis. Outstanding – This is the highest quality rating that is assigned to any loan in the portfolio. These loans are made to the highest quality borrowers with strong financial statements and unquestionable repayment sources. Collateral securing these types of credits are generally cash deposits in the bank or marketable securities held in custody. Good – Loans rated in this category are strong loans, underwritten well, that bear little risk of loss to the Company. Loans in this category are loans to quality borrowers with very good financial statements that present an identifiable strong primary source and good secondary source of repayment. Generally, these credits are well collateralized by good quality and liquid assets or low loan to value market real estate. Pass - Loans rated in this category are acceptable loans, appropriately underwritten, bearing an ordinary risk of loss to the Company. Loans in this category are loans to quality borrowers with financial statements presenting a good primary source as well as an adequate secondary source of repayment. In the case of individuals, borrowers with this rating are quality borrowers demonstrating a reasonable level of secure income, a net worth adequate to support the loan and presenting a good primary source as well as an adequate secondary source of repayment. Watch – Acceptable credit that requires a temporary increase in attention by management. This can be caused by declines in sales, margins, liquidity or working capital. Generally the primary weakness is lack of current financial statements and industry issues. Special Mention - A Special Mention loan has potential weaknesses that require management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize full collection of amounts due. They are characterized by the distinct possibility that the Company will sustain some loss if the borrower’s deficiencies are not corrected. Doubtful - A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. Losses are taken in the period in which they are considered uncollectible. The Company’s ALL is maintained at a level believed appropriate by management to absorb known and inherent probable losses on existing loans. The allowance is charged for losses when management believes that full recovery on the loan is unlikely. The following is the Company’s policy regarding charging off loans. Commercial, CRE and SBA Loans Charge-offs on these loan categories are taken as soon as all or a portion of any loan balance is deemed to be uncollectible. A loan is considered impaired when, based on current information, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Generally, loan balances are charged-down to the fair value of the collateral, if, based on a current assessment of the value, an apparent deficiency exists. In the event there is no perceived equity, the loan is charged-off in full. Unsecured loans which are delinquent over 90 days are also charged-off in full. Single Family Real Estate, HELOC’s and Manufactured Housing Loans Consumer loans and residential mortgages secured by one-to-four family residential properties, HELOC and manufactured housing loans in which principal or interest is due and unpaid for 90 days, are evaluated for impairment. Loan balances are charged-off to the fair value of the property, less estimated selling costs, if, based on a current appraisal, an apparent deficiency exists. In the event there is no perceived equity, the loan is generally fully charged-off. Consumer Loans All consumer loans (excluding real estate mortgages, HELOCs and savings secured loans) are charged-off or charged-down to net recoverable value before becoming 120 days or five payments delinquent. The ALL calculation for the different loan portfolios is as follows:
The Company evaluates and individually assesses for impairment loans generally greater than $500,000, classified as substandard or doubtful in addition to loans either on nonaccrual, considered a TDR or when other conditions exist which lead management to review for possible impairment. Measurement of impairment on impaired loans is determined on a loan-by-loan basis and in total establishes a specific reserve for impaired loans. The amount of impairment is determined by comparing the recorded investment in each loan with its value measured by one of three methods:
Interest income is not recognized on impaired loans except for limited circumstances in which a loan, although impaired, continues to perform in accordance with the loan contract and the borrower provides financial information to support maintaining the loan on accrual. The Company determines the appropriate ALL on a monthly basis. Any differences between estimated and actual observed losses from the prior month are reflected in the current period in determining the appropriate ALL determination and adjusted as deemed necessary. The review of the appropriateness of the allowance takes into consideration such factors as concentrations of credit, changes in the growth, size and composition of the loan portfolio, overall and individual portfolio quality, review of specific problem loans, collateral, guarantees and economic and environmental conditions that may affect the borrowers' ability to pay and/or the value of the underlying collateral. Additional factors considered include: geographic location of borrowers, changes in the Company’s product-specific credit policy and lending staff experience. These estimates depend on the outcome of future events and, therefore, contain inherent uncertainties. Another component of the ALL considers qualitative factors related to non-impaired loans. The qualitative portion of the allowance on each of the loan pools is based on the following factors:
Off Balance Sheet and Credit Exposure In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the consolidated balance sheets. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral. As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for loan losses on off-balance sheet instruments is included within other liabilities and the charge to income that establishes this liability is included in non-interest expense. Foreclosed Real Estate and Repossessed Assets Foreclosed real estate and other repossessed assets are recorded at fair value at the time of foreclosure less estimated costs to sell. Any excess of loan balance over the fair value less estimated costs to sell of the other assets is charged-off against the allowance for loan losses. Any excess of the fair value less estimated costs to sell over the loan balance is recorded as a loan loss recovery to the extent of the loan loss previously charged-off against the allowance for loan losses; and, if greater, recorded as a gain on foreclosed assets. Subsequent to the legal ownership date, the Company periodically performs a new valuation and the asset is carried at the lower of carrying amount or fair value less estimated costs to sell. Operating expenses or income, and gains or losses on disposition of such properties, are recorded in current operations. Income Taxes The Company uses the asset and liability method, which recognizes an asset or liability representing the tax effects of future deductible or taxable amounts that have been recognized in the consolidated financial statements. Due to tax regulations, certain items of income and expense are recognized in different periods for tax return purposes than for financial statement reporting. These items represent “temporary differences.” Deferred income taxes are recognized for the tax effect of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established for deferred tax assets if, based on weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets may not be realized. Any interest or penalties assessed by the taxing authorities is classified in the financial statements as income tax expense. Deferred tax assets are included in other assets on the consolidated balance sheets. Management evaluates the Company’s deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including the Company’s historical profitability and projections of future taxable income. The Company is required to establish a valuation allowance for deferred tax assets and record a charge to income if management determines, based on available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax assets may not be realized. The Company is subject to the provisions of ASC 740, Income Taxes (“ASC 740”). ASC 740 prescribes a more likely than not threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. On a quarterly basis, the Company evaluates income tax accruals in accordance with ASC 740 guidance on uncertain tax positions. Earnings Per Share Basic earnings per common share is computed using the weighted average number of common shares outstanding for the period divided into the net income available to common shareholders. Diluted earnings per share include the effect of all dilutive potential common shares for the period. Potentially dilutive common shares include stock options and warrants. Recent Accounting Pronouncements In May 2014, the FASB issued guidance codified within ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers,” which amends the guidance in former Topic 605, Revenue Recognition. The new revenue recognition standard will supersede virtually all revenue guidance in U.S. GAAP, including industry specific guidance. The guidance in this Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. ASU 2014-09 is effective for the Company for annual reporting periods beginning after December 15, 2016. In July 2015, this effective date was extended for the Company to December 18, 2017. The Company may elect to apply the amendments of this Update using one of the following two methods: 1) retrospectively to each prior reporting period presented or 2) retrospectively with the cumulative effect of initially applying this Update recognized at the date of initial application. The Company is currently evaluating the impact of the provisions in this standard on the Company’s consolidated financial statements. In January 2016, the FASB issued guidance codified within ASU 2016-01, “Financial Instruments – Overall, Subtopic 825-10: Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain guidance on classification and measurement of financial instruments. The update is intended to enhance the reporting model for financial instruments to provide users of financial instruments with more decision-useful information and addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for the Company for annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the provisions in this standard on the Company’s consolidated financial statements. In February 2016, the FASB amended its standards with respect to the accounting for leases. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and requires that an operating lease be recognized on the statement of financial condition as a “right-to-use” asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting remain unchanged from existing guidance. This standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes. The guidance requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application and will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The standard is effective for the Company as of January 1, 2019. The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements. |
INVESTMENT SECURITIES |
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INVESTMENT SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities are as follows:
At March 31, 2016 and December 31, 2015, $35.6 million and $30.5 million of securities at carrying value, respectively, were pledged to the Federal Home Loan Bank (“FHLB”), as collateral for current and future advances. The maturity periods and weighted average yields of investment securities at March 31, 2016 and December 31, 2015 were as follows:
The amortized cost and fair value of investment securities by contractual maturities as of the periods presented were as shown below:
Actual maturities may differ from contractual maturities as borrowers or issuers have the right to prepay or call the investment securities. Changes in interest rates may also impact prepayments. The following tables show all securities that are in an unrealized loss position:
As of March 31, 2016 and December 31, 2015, there were seven and nine securities, respectively, in an unrealized loss position. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers, among other things (i) the length of time and the extent to which the fair value has been less than cost (ii) the financial condition and near-term prospects of the issuer and (iii) the Company’s intent to sell an impaired security and if it is not more likely than not it will be required to sell the security before the recovery of its amortized basis. The unrealized losses are primarily due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date, repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of March 31, 2016 and December 31, 2015, management believes the impairments detailed in the table above are temporary and no other-than-temporary impairment loss has been realized in the Company’s consolidated income statements. |
LOANS HELD FOR INVESTMENT |
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LOANS HELD FOR INVESTMENT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT | 3. LOANS HELD FOR INVESTMENT The composition of the Company’s loans held for investment loan portfolio follows:
The following table presents the contractual aging of the recorded investment in past due held for investment loans by class of loans:
* Table reports past dues based on Call Report definitions of number of payments past due.
* Table reports past dues based on Call Report definitions of number of payments past due. Allowance for Loan Losses The following table summarizes the changes in the allowance for loan losses:
As of March 31, 2016 and December 31, 2015, the Company had reserves for credit losses on undisbursed loans of $74,000 and $61,000 which were included in Other liabilities. The following tables summarize the changes in the allowance for loan losses by portfolio type:
The following tables present impairment method information related to loans and allowance for loan losses by loan portfolio segment:
Included in impaired loans are $2.2 million of loans guaranteed by government agencies at March 31, 2016 and December 31, 2015, respectively. A valuation allowance is established for an impaired loan when the fair value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are charged-off to realizable value instead of establishing a valuation allowance and are included, when applicable in the table below as “Impaired loans without specific valuation allowance under ASC 310.” The valuation allowance disclosed above is included in the allowance for loan losses reported in the consolidated balance sheets as of March 31, 2016 and December 31, 2015. The table below reflects recorded investment in loans classified as impaired:
The following tables summarize impaired loans by class of loans:
The following table summarizes average investment in impaired loans by class of loans and the related interest income recognized:
The Company is not committed to lend additional funds on these impaired loans. The following table reflects the recorded investment in certain types of loans at the periods indicated:
The accrual of interest is discontinued when substantial doubt exists as to collectability of the loan; generally at the time the loan is 90 days delinquent. Any unpaid but accrued interest is reversed at that time. Thereafter, interest income is no longer recognized on the loan. Interest income may be recognized on impaired loans to the extent they are not past due by 90 days. Interest on nonaccrual loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Foregone interest on nonaccrual and TDR loans for the three months ended March 31, 2016 and 2015 was $0.1 million and $0.3 million, respectively. The following table presents the composition of nonaccrual loans by class of loans:
Included in nonaccrual loans are $1.9 million of loans guaranteed by government agencies at March 31, 2016 and December 31, 2015. The guaranteed portion of each SBA loan is repurchased from investors when those loans become past due 120 days by either CWB or the SBA directly. After the foreclosure and collection process is complete, the principal balance of loans repurchased by CWB are reimbursed by the SBA. Although these balances do not earn interest during this period, they generally do not result in a loss of principal to CWB; therefore a repurchase reserve has not been established related to these loans. The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as “Special Mention,” “Substandard,” “Doubtful” and “Loss”. For a detailed discussion on these risk classifications see “Note 1 Summary of Significant Accounting Policies - Allowance for Loan Losses and Provision for Loan Losses” of this Form 10-Q. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution's credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Risk ratings are updated as part of our normal loan monitoring process, at a minimum, annually. The following tables present gross loans by risk rating:
Troubled Debt Restructured Loan (TDR) A TDR is a loan on which the bank, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the bank would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, extensions, deferrals, renewals and rewrites. The majority of the bank’s modifications are extensions in terms or deferral of payments which result in no lost principal or interest followed by reductions in interest rates or accrued interest. A TDR is also considered impaired. Generally, a loan that is modified at an effective market rate of interest may no longer be disclosed as a troubled debt restructuring in years subsequent to the restructuring if it is not impaired based on the terms specified by the restructuring agreement. The following tables summarize the financial effects of TDR loans by loan class for the periods presented:
The average rate concessions were 89 basis points and 0 basis points for the three months ended March 31, 2016 and 2015, respectively. The average term extension in months was 164 and 13 for the first quarter 2016 and 2015, respectively. A TDR loan is deemed to have a payment default when the borrower fails to make two consecutive payments or the collateral is transferred to repossessed assets. The Company had no TDR’s with payment defaults for the three months ended March 31, 2016 or 2015. At March 31, 2016 there were no material loan commitments outstanding on TDR loans. |
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE |
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OTHER ASSETS ACQUIRED THROUGH FORECLOSURE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE | 4. OTHER ASSETS ACQUIRED THROUGH FORECLOSURE The following table summarizes the changes in other assets acquired through foreclosure:
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FAIR VALUE MEASUREMENT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | 5. FAIR VALUE MEASUREMENT The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) established a framework for measuring fair value using a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset as of the measurement date. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would consider in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs, as follows:
The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date. FASB ASC 825, Financial Instruments (“ASC 825”) requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at March 31, 2016 and December 31, 2015. The estimated fair value amounts for March 31, 2016 and December 31, 2015 have been measured as of period-end, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at the period-end. This information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful. The following tables summarize the fair value of assets measured on a recurring basis:
Market valuations of our investment securities which are classified as level 2 are provided by an independent third party. The fair values are determined by using several sources for valuing fixed income securities. Their techniques include pricing models that vary based on the type of asset being valued and incorporate available trade, bid and other market information. In accordance with the fair value hierarchy, the market valuation sources include observable market inputs and are therefore considered Level 2 inputs for purposes of determining the fair values. On certain SBA loan sales, the Company retained I/O strips which represent the present value of excess net cash flows generated by the difference between (a) interest at the stated rate paid by borrowers and (b) the sum of (i) pass-through interest paid to third-party investors and (ii) contractual servicing fees. I/O strips are classified as Level 3 in the fair value hierarchy. The fair value is determined on a quarterly basis through a discounted cash flow analysis prepared by an independent third party using industry prepayment speeds. I/O strip valuation adjustments are recorded as additions or offsets to loan servicing income. Historically, the Company has elected to use the amortizing method for the treatment of servicing assets and has measured for impairment on a quarterly basis through a discounted cash flow analysis prepared by an independent third party using industry prepayment speeds. In connection with the sale of certain SBA and USDA loans the Company recorded servicing assets and elected to measure those assets at fair value in accordance with ASC 825-10. Significant assumptions in the valuation of servicing assets include estimated loan repayment rates, the discount rate, and servicing costs, among others. Servicing assets are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include loans held for sale, foreclosed real estate and repossessed assets and certain loans that are considered impaired per generally accepted accounting principles. The following summarizes the fair value measurements of assets measured on a non-recurring basis:
The Company records certain loans at fair value on a non-recurring basis. When a loan is considered impaired an allowance for a loan loss is established. The fair value measurement and disclosure requirement applies to loans measured for impairment using the practical expedients method permitted by accounting guidance for impaired loans. Impaired loans are measured at an observable market price, if available or at the fair value of the loan’s collateral, if the loan is collateral dependent. The fair value of the loan’s collateral is determined by appraisals or independent valuation. When the fair value of the loan’s collateral is based on an observable market price or current appraised value, given the current real estate markets, the appraisals may contain a wide range of values and accordingly, the Company classifies the fair value of the impaired loans as a non-recurring valuation within Level 2 of the valuation hierarchy. For loans in which impairment is determined based on the net present value of cash flows, the Company classifies these as a non-recurring valuation within Level 3 of the valuation hierarchy. Foreclosed real estate and repossessed assets are carried at the lower of book value or fair value less estimated costs to sell. Fair value is based upon independent market prices obtained from certified appraisers or the current listing price, if lower. When the fair value of the collateral is based on a current appraised value, the Company reports the fair value of the foreclosed collateral as non-recurring Level 2. When a current appraised value is not available or if management determines the fair value of the collateral is further impaired, the Company reports the foreclosed collateral as non-recurring Level 3. FAIR VALUES OF FINANCIAL INSTRUMENTS The estimated fair values of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The estimated fair value of the Company’s financial instruments are as follows:
The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents The carrying amounts reported in the consolidated balance sheets for cash and due from banks approximate their fair value. Money market investments The carrying amounts reported in the consolidated balance sheets for money market investments approximate their fair value. Investment securities The fair value of Farmer Mac class A stock is based on quoted market prices and are categorized as Level 1 of the fair value hierarchy. The fair value of other investment securities were determined based on matrix pricing. Matrix pricing is a mathematical technique that utilizes observable market inputs including, for example, yield curves, credit ratings and prepayment speeds. Fair values determined using matrix pricing are generally categorized as Level 2 in the fair value hierarchy. Federal Reserve Stock and Federal Home Loan Bank Stock CWB is a member of the FHLB system and maintains an investment in capital stock of the FHLB. CWB also maintain an investment in capital stock of the Federal Reserve Bank (“FRB”). These investments are carried at cost since no ready market exists for them, and they have no quoted market value. The Company conducts a periodic review and evaluation of our FHLB stock to determine if any impairment exists. The fair values have been categorized as Level 2 in the fair value hierarchy. Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics or based on the agreed-upon sale price. As such, the Company classifies the fair value of loans held for sale as a non-recurring valuation within Level 2 of the fair value hierarchy. At March 31, 2016 and December 31 2015, the Company had loans held for sale with an aggregate carrying value of $61.9 million and $64.5 million respectively. Loans Fair value for loans is estimated based on discounted cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality with adjustments that the Company believes a market participant would consider in determining fair value based on a third party independent valuation. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy. Fair values of impaired loans using a discounted cash flow method to measure impairment have been categorized as Level 3. Deposits The amount payable at demand at report date is used to estimate the fair value of demand and savings deposits. The estimated fair values of fixed-rate time deposits are determined by discounting the cash flows of segments of deposits that have similar maturities and rates, utilizing a discount rate that approximates the prevailing rates offered to depositors as of the measurement date. The fair value measurement of deposit liabilities is categorized as Level 2 in the fair value hierarchy. Federal Home Loan Bank advances and other borrowings The fair values of the Company’s borrowings are estimated using discounted cash flow analyses, based on the market rates for similar types of borrowing arrangements. The FHLB advances have been categorized as Level 2 in the fair value hierarchy. Off-balance sheet instruments Fair values for the Company’s off-balance sheet instruments (lending commitments and standby letters of credit) are based on quoted fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The standby letters of credit outstanding at March 31, 2016 and December 31, 2015 were $0.1 million, respectively. Unfunded loan commitments at March 31, 2016 and December 31, 2015 were $46.9 million, respectively. |
OTHER BORROWINGS AND CONVERTIBLE DEBENTURES |
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OTHER BORROWINGS AND CONVERTIBLE DEBENTURES [Abstract] | |
OTHER BORROWINGS AND CONVERTIBLE DEBENTURES | 6. OTHER BORROWINGS AND CONVERTIBLE DEBENTURES Federal Home Loan Bank Advances – The Company through the bank has a blanket lien credit line with the FHLB. FHLB advances are collateralized in the aggregate by CWB’s eligible loans and securities. There were $5.0 million of FHLB advances outstanding at March 31, 2016 and December 31, 2015, borrowed at a fixed rate of 0.55%. The Company also had $90.0 million of letters of credit with FHLB at March 31, 2016 to secure public funds. At March 31, 2016, CWB had pledged to the FHLB, $35.6 million of securities and $149.4 million of loans. At March 31, 2016, CWB had $50.6 million available for additional borrowing. At December 31, 2015, CWB had pledged to the FHLB, $30.5 million of securities and $140.0 million of loans. At December 31, 2015, CWB had $67.8 million available for additional borrowing. Total FHLB interest expense for the three months ended March 31, 2016 and 2015 was $7,000 and $0.6 million, respectively. Federal Reserve Bank – The Company has established a credit line with the FRB. Advances are collateralized in the aggregate by eligible loans for up to 28 days. There were no outstanding FRB advances as of March 31, 2016 and December 31, 2015. Available borrowing capacity was $93.7 million and $94.0 million as of March 31, 2016 and December 31, 2015, respectively. Federal Funds Purchased Lines – The Company has federal funds borrowing lines at correspondent banks totaling $20.0 million. There was no amount outstanding as of March 31, 2016 and December 31, 2015. Line of Credit - In October of 2015, the Company entered into a one year revolving line of credit agreement for up to $10.0 million. At March 31, 2016, the balance was $5.5 million at a rate of 4.187%. The Company must maintain a compensating deposit with the lender of 25% of the outstanding principal balance in a non-interest bearing deposit account which was $1.4 million at March 31, 2016 and December 31, 2015, respectively. In addition, the Company must maintain a minimum debt service coverage ratio of 1.65, a minimum Tier 1 leverage ratio of 7.0% and a minimum total risked based capital ratio of 10.0%. The Company incurs a quarterly unused commitment fee of 50 basis points per annum on the average available balance. The outstanding balance of the revolving line of credit converts to a term loan at maturity with quarterly payments of 5% and maturity date of October 31, 2021. |
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STOCKHOLDERS' EQUITY | 7. STOCKHOLDERS’ EQUITY The following table summarizes the changes in other comprehensive income (loss) by component, net of tax for the period indicated:
There were no reclassifications out of accumulated other comprehensive income for the three and nine months ended March 31, 2016 or 2015. Common Stock During the first quarter of 2016, the Company repurchased 107,253 common stock shares for an average price of $6.99 a share under the common stock repurchase program. During the three months ended March 31, 2016 and 2015, the Company paid a quarterly common stock dividend of $0.2 million, respectively. Common Stock Warrant The Warrant issued as part of the TARP provides for the purchase of up to 521,158 shares of the common stock, at an exercise price of $4.49 per share (“Warrant Shares”). The Warrant is immediately exercisable and expires on December 19, 2018. The exercise price and the ultimate number of shares of common stock that may be issued under the Warrant are subject to certain anti-dilution adjustments, such as upon stock splits or distributions of securities or other assets to holders of the common stock, and upon certain issuances of the common stock at or below a specified price relative to the then current market price of the common stock. In the second quarter of 2013, the Treasury sold its warrant position to a private investor. Pursuant to the Securities Purchase Agreement, the private investor has agreed not to exercise voting power with respect to any Warrant Shares. |
EARNINGS PER SHARE |
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EARNINGS PER SHARE | 8. EARNINGS PER SHARE The following table presents a reconciliation of basic earnings per share and diluted earnings per share:
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CAPITAL REQUIREMENT |
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CAPITAL REQUIREMENT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL REQUIREMENT | 9. CAPITAL REQUIREMENT The Company and CWB are subject to various regulatory capital adequacy requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the Company’s business and financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and CWB must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Effective January 1, 2015, CWB was subject to the “Basel III” guidelines for determining regulatory capital. These capital rules among other things introduced a minimum Common Equity Tier 1 (CET1) ratio of 4.5% and a capital conservation buffer of 2.5%. Phase-in of the capital conservation buffer requirements began on January 1, 2016. Effective March 31, 2015, CWBC met the requirements under the final rule changes to the Federal Reserve’s Small Bank Holding Company Policy Statement for institutions with $500 million to $1 billion in total consolidated assets. Under the revised policy, CWBC is no longer subject to certain consolidated regulatory financial reporting requirements and is not subject to Basel III capital rules and reporting requirements. As of March 31, 2016 and December 31, 2015, the Company and CWB met the minimum capital ratio requirements to be classified as well-capitalized, as defined by the banking agencies. The Company’s and CWB’s capital amounts and ratios as of March 31, 2016 and December 31, 2015 are presented in the table below:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Nature of Operations | Nature of Operations Community West Bancshares (“CWBC”), incorporated under the laws of the state of California, is a bank holding company providing full service banking through its wholly-owned subsidiary Community West Bank, N.A. (“CWB” or the “Bank”). These entities are collectively referred to herein as the “Company.” |
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Basis of Presentation | Basis of Presentation The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States (“GAAP”) and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiary are included in these Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, the fair value of other real estate owned and the fair value of securities available for sale. Although Management believes these estimates to be reasonably accurate, actual amounts may differ. In the opinion of Management, all adjustments considered necessary have been reflected in the financial statements during their preparation. |
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Interim Financial Information | Interim Financial Information The accompanying unaudited consolidated financial statements as of and for the three months ended March 31, 2016 and 2015 have been prepared in a condensed format, and therefore do not include all of the information and footnotes required by GAAP for complete financial statements. These statements have been prepared on a basis that is substantially consistent with the accounting principles applied to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the Company’s audited consolidated financial statements. |
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Reclassifications | Reclassifications Certain amounts in the consolidated financial statements as of December 31, 2015 and for the three months ended March 31, 2015 have been reclassified to conform to the current presentation. The reclassifications have no effect on net income, comprehensive income or stockholders’ equity as previously reported. |
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Loans Held for Sale | Loans Held For Sale Loans which are originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value determined on an aggregate basis. Valuation adjustments, if any, are recognized through a valuation allowance by charges to lower of cost or fair value provision. Loans held for sale are mostly comprised of SBA and commercial agriculture. In the third quarter of 2015, the Company announced its exit from originating single family residential loans for sale. The Company did not incur any lower of cost or fair value provision in the three months ended March 31, 2016 and 2015. |
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Loans Held for Investment and Interest and Fees from Loans | Loans Held for Investment and Interest and Fees from Loans Loans are recognized at the principal amount outstanding, net of unearned income, loan participations and amounts charged off. Unearned income includes deferred loan origination fees reduced by loan origination costs. Unearned income on loans is amortized to interest income over the life of the related loan using the level yield method. Interest income on loans is accrued daily using the effective interest method and recognized over the terms of the loans. Loan fees collected for the origination of loans less direct loan origination costs (net deferred loan fees) are amortized over the contractual life of the loan through interest income. If the loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of unearned fees, deferred fees and costs and premiums and discounts paid on purchased loans are accounted for though interest income. Nonaccrual loans: For all loan types, when a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. Generally, the Company places loans in a nonaccrual status and ceases recognizing interest income when the loan has become delinquent by more than 90 days or when Management determines that the full repayment of principal and collection of interest is unlikely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent if they are well secured by collateral and in the process of collection. Other personal loans are typically charged off no later than 180 days delinquent. For all loan types, when a loan is placed on nonaccrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed. Subsequent payments received from the customer are applied to principal and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. The Company occasionally recognizes income on a cash basis for non-accrual loans in which the collection of the remaining principal balance is not in doubt. Impaired loans: A loan is considered impaired when, based on current information; it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays or payment shortfalls on a case-by-case basis. When determining the possibility of impairment, management considers the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. For collateral-dependent loans, the Company uses the fair value of collateral method to measure impairment. The collateral-dependent loans that recognize impairment are charged down to the fair value less costs to sell. All other loans are measured for impairment either based on the present value of future cash flows or the loan’s observable market price. Troubled debt restructured loan (“TDR”): A TDR is a loan on which the Company, for reasons related to the borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. These concessions included but are not limited to term extensions, rate reductions and principal reductions. Forgiveness of principal is rarely granted and modifications for all classes of loans are predominately term extensions. A TDR loan is also considered impaired. Generally, a loan that is modified at an effective market rate of interest may no longer be disclosed as a troubled debt restructuring in years subsequent to the restructuring if it is not impaired based on the terms specified by the restructuring agreement. |
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Allowance for Loan Losses and Provision for Loan Losses | Allowance for Loan Losses and Provision for Loan Losses The Company maintains a detailed, systematic analysis and procedural discipline to determine the amount of the allowance for loan losses (“ALL”). The ALL is based on estimates and is intended to be appropriate to provide for probable losses inherent in the loan portfolio. This process involves deriving probable loss estimates that are based on migration analysis and historical loss rates, in addition to qualitative factors that are based on management’s judgment. The migration analysis and historical loss rate calculations are based on the annualized loss rates utilizing a twelve-quarter loss history. Migration analysis is utilized for the Commercial Real Estate (“CRE”), Commercial, Commercial Agriculture, Small Business Administration (“SBA”), Home Equity Line of Credit (“HELOC”), Single Family Residential, and Consumer portfolios. The historical loss rate method is utilized primarily for the Manufactured Housing portfolio. The migration analysis takes into account the risk rating of loans that are charged off in each loan category. Loans that are considered Doubtful are typically charged off. The following is a description of the characteristics of loan ratings. Loan ratings are reviewed as part of our normal loan monitoring process, but, at a minimum, updated on an annual basis. Outstanding – This is the highest quality rating that is assigned to any loan in the portfolio. These loans are made to the highest quality borrowers with strong financial statements and unquestionable repayment sources. Collateral securing these types of credits are generally cash deposits in the bank or marketable securities held in custody. Good – Loans rated in this category are strong loans, underwritten well, that bear little risk of loss to the Company. Loans in this category are loans to quality borrowers with very good financial statements that present an identifiable strong primary source and good secondary source of repayment. Generally, these credits are well collateralized by good quality and liquid assets or low loan to value market real estate. Pass - Loans rated in this category are acceptable loans, appropriately underwritten, bearing an ordinary risk of loss to the Company. Loans in this category are loans to quality borrowers with financial statements presenting a good primary source as well as an adequate secondary source of repayment. In the case of individuals, borrowers with this rating are quality borrowers demonstrating a reasonable level of secure income, a net worth adequate to support the loan and presenting a good primary source as well as an adequate secondary source of repayment. Watch – Acceptable credit that requires a temporary increase in attention by management. This can be caused by declines in sales, margins, liquidity or working capital. Generally the primary weakness is lack of current financial statements and industry issues. Special Mention - A Special Mention loan has potential weaknesses that require management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize full collection of amounts due. They are characterized by the distinct possibility that the Company will sustain some loss if the borrower’s deficiencies are not corrected. Doubtful - A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. Losses are taken in the period in which they are considered uncollectible. The Company’s ALL is maintained at a level believed appropriate by management to absorb known and inherent probable losses on existing loans. The allowance is charged for losses when management believes that full recovery on the loan is unlikely. The following is the Company’s policy regarding charging off loans. Commercial, CRE and SBA Loans Charge-offs on these loan categories are taken as soon as all or a portion of any loan balance is deemed to be uncollectible. A loan is considered impaired when, based on current information, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Generally, loan balances are charged-down to the fair value of the collateral, if, based on a current assessment of the value, an apparent deficiency exists. In the event there is no perceived equity, the loan is charged-off in full. Unsecured loans which are delinquent over 90 days are also charged-off in full. Single Family Real Estate, HELOC’s and Manufactured Housing Loans Consumer loans and residential mortgages secured by one-to-four family residential properties, HELOC and manufactured housing loans in which principal or interest is due and unpaid for 90 days, are evaluated for impairment. Loan balances are charged-off to the fair value of the property, less estimated selling costs, if, based on a current appraisal, an apparent deficiency exists. In the event there is no perceived equity, the loan is generally fully charged-off. Consumer Loans All consumer loans (excluding real estate mortgages, HELOCs and savings secured loans) are charged-off or charged-down to net recoverable value before becoming 120 days or five payments delinquent. The ALL calculation for the different loan portfolios is as follows:
The Company evaluates and individually assesses for impairment loans generally greater than $500,000, classified as substandard or doubtful in addition to loans either on nonaccrual, considered a TDR or when other conditions exist which lead management to review for possible impairment. Measurement of impairment on impaired loans is determined on a loan-by-loan basis and in total establishes a specific reserve for impaired loans. The amount of impairment is determined by comparing the recorded investment in each loan with its value measured by one of three methods:
Interest income is not recognized on impaired loans except for limited circumstances in which a loan, although impaired, continues to perform in accordance with the loan contract and the borrower provides financial information to support maintaining the loan on accrual. The Company determines the appropriate ALL on a monthly basis. Any differences between estimated and actual observed losses from the prior month are reflected in the current period in determining the appropriate ALL determination and adjusted as deemed necessary. The review of the appropriateness of the allowance takes into consideration such factors as concentrations of credit, changes in the growth, size and composition of the loan portfolio, overall and individual portfolio quality, review of specific problem loans, collateral, guarantees and economic and environmental conditions that may affect the borrowers' ability to pay and/or the value of the underlying collateral. Additional factors considered include: geographic location of borrowers, changes in the Company’s product-specific credit policy and lending staff experience. These estimates depend on the outcome of future events and, therefore, contain inherent uncertainties. Another component of the ALL considers qualitative factors related to non-impaired loans. The qualitative portion of the allowance on each of the loan pools is based on the following factors:
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Off Balance Sheet and Credit Exposure | Off Balance Sheet and Credit Exposure In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the consolidated balance sheets. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral. As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for loan losses on off-balance sheet instruments is included within other liabilities and the charge to income that establishes this liability is included in non-interest expense. |
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Foreclosed Real Estate and Repossessed Assets | Foreclosed Real Estate and Repossessed Assets Foreclosed real estate and other repossessed assets are recorded at fair value at the time of foreclosure less estimated costs to sell. Any excess of loan balance over the fair value less estimated costs to sell of the other assets is charged-off against the allowance for loan losses. Any excess of the fair value less estimated costs to sell over the loan balance is recorded as a loan loss recovery to the extent of the loan loss previously charged-off against the allowance for loan losses; and, if greater, recorded as a gain on foreclosed assets. Subsequent to the legal ownership date, the Company periodically performs a new valuation and the asset is carried at the lower of carrying amount or fair value less estimated costs to sell. Operating expenses or income, and gains or losses on disposition of such properties, are recorded in current operations. |
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Income Taxes | Income Taxes The Company uses the asset and liability method, which recognizes an asset or liability representing the tax effects of future deductible or taxable amounts that have been recognized in the consolidated financial statements. Due to tax regulations, certain items of income and expense are recognized in different periods for tax return purposes than for financial statement reporting. These items represent “temporary differences.” Deferred income taxes are recognized for the tax effect of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established for deferred tax assets if, based on weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets may not be realized. Any interest or penalties assessed by the taxing authorities is classified in the financial statements as income tax expense. Deferred tax assets are included in other assets on the consolidated balance sheets. Management evaluates the Company’s deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including the Company’s historical profitability and projections of future taxable income. The Company is required to establish a valuation allowance for deferred tax assets and record a charge to income if management determines, based on available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax assets may not be realized. The Company is subject to the provisions of ASC 740, Income Taxes (“ASC 740”). ASC 740 prescribes a more likely than not threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. On a quarterly basis, the Company evaluates income tax accruals in accordance with ASC 740 guidance on uncertain tax positions. |
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Earnings Per Share | Earnings Per Share Basic earnings per common share is computed using the weighted average number of common shares outstanding for the period divided into the net income available to common shareholders. Diluted earnings per share include the effect of all dilutive potential common shares for the period. Potentially dilutive common shares include stock options and warrants. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued guidance codified within ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers,” which amends the guidance in former Topic 605, Revenue Recognition. The new revenue recognition standard will supersede virtually all revenue guidance in U.S. GAAP, including industry specific guidance. The guidance in this Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. ASU 2014-09 is effective for the Company for annual reporting periods beginning after December 15, 2016. In July 2015, this effective date was extended for the Company to December 18, 2017. The Company may elect to apply the amendments of this Update using one of the following two methods: 1) retrospectively to each prior reporting period presented or 2) retrospectively with the cumulative effect of initially applying this Update recognized at the date of initial application. The Company is currently evaluating the impact of the provisions in this standard on the Company’s consolidated financial statements. In January 2016, the FASB issued guidance codified within ASU 2016-01, “Financial Instruments – Overall, Subtopic 825-10: Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain guidance on classification and measurement of financial instruments. The update is intended to enhance the reporting model for financial instruments to provide users of financial instruments with more decision-useful information and addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for the Company for annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the provisions in this standard on the Company’s consolidated financial statements. In February 2016, the FASB amended its standards with respect to the accounting for leases. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and requires that an operating lease be recognized on the statement of financial condition as a “right-to-use” asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting remain unchanged from existing guidance. This standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes. The guidance requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application and will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The standard is effective for the Company as of January 1, 2019. The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements. |
INVESTMENT SECURITIES (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Investment Securities | The amortized cost and estimated fair value of investment securities are as follows:
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Maturity Periods and Weighted Average Yields of Investment Securities | The maturity periods and weighted average yields of investment securities at March 31, 2016 and December 31, 2015 were as follows:
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Amortized Cost and Fair Value of Investment Securities by Contractual Maturities | The amortized cost and fair value of investment securities by contractual maturities as of the periods presented were as shown below:
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Fair Value and Unrealized Losses of Securities in Unrealized Loss Position | The following tables show all securities that are in an unrealized loss position:
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LOANS HELD FOR INVESTMENT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Loans Held for Investment Loan Portfolio | The composition of the Company’s loans held for investment loan portfolio follows:
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Contractual Aging of Recorded Investment in Past Due Held for Investment Loans by Class of Loans | The following table presents the contractual aging of the recorded investment in past due held for investment loans by class of loans:
* Table reports past dues based on Call Report definitions of number of payments past due.
* Table reports past dues based on Call Report definitions of number of payments past due. |
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Analysis of Allowance for Loan Losses for Loans Held for Investment | The following table summarizes the changes in the allowance for loan losses:
The following tables summarize the changes in the allowance for loan losses by portfolio type:
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Impairment Method Information Related to Loans and Allowance for Loan Losses by Loan Portfolio Segment | The following tables present impairment method information related to loans and allowance for loan losses by loan portfolio segment:
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Recorded Investment in Loans Classified as Impaired | The table below reflects recorded investment in loans classified as impaired:
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Summary of Impaired Loans by Class of Loans | The following tables summarize impaired loans by class of loans:
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Summary of Average Investment in Impaired Loans by Class and Related Interest Income Recognized | The following table summarizes average investment in impaired loans by class of loans and the related interest income recognized:
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Schedule of Recorded Investment in Certain Types of Loans | The following table reflects the recorded investment in certain types of loans at the periods indicated:
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Composition of Net Nonaccrual Loans | The following table presents the composition of nonaccrual loans by class of loans:
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Schedule of Gross Loans by Risk Rating | The following tables present gross loans by risk rating:
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Troubled Debt Restructurings | The following tables summarize the financial effects of TDR loans by loan class for the periods presented:
|
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets Acquired through Foreclosure | The following table summarizes the changes in other assets acquired through foreclosure:
|
FAIR VALUE MEASUREMENT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value Measurements of Assets Measured on a Recurring Basis | The following tables summarize the fair value of assets measured on a recurring basis:
|
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Summary of Fair Value Measurements of Assets Measured on a Non-recurring Basis | The following summarizes the fair value measurements of assets measured on a non-recurring basis:
|
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Estimated Fair Values and Carrying Values of Financial Instruments | The estimated fair value of the Company’s financial instruments are as follows:
|
STOCKHOLDERS' EQUITY (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Other Comprehensive Income (loss) by Component, Net of Tax | The following table summarizes the changes in other comprehensive income (loss) by component, net of tax for the period indicated:
|
EARNINGS PER SHARE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings per Share | The following table presents a reconciliation of basic earnings per share and diluted earnings per share:
|
CAPITAL REQUIREMENT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CAPITAL REQUIREMENT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's and CWB's Capital Amounts and Ratios | The Company’s and CWB’s capital amounts and ratios as of March 31, 2016 and December 31, 2015 are presented in the table below:
|
LOANS HELD FOR INVESTMENT, Allowance for Credit Losses by Portfolio Type (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Summary of provision, charge-offs and recoveries by loan category [Roll Forward] | |||
Beginning balance | $ 6,916 | $ 7,877 | |
Charge-offs | (11) | (131) | |
Recoveries | 161 | 497 | |
Net (charge-offs) recoveries | 150 | 366 | |
Provision (credit) | (247) | (968) | |
Ending balance | 6,819 | 7,275 | |
Reserve for credit losses on undisbursed loans | 74 | $ 61 | |
Manufactured Housing [Member] | |||
Summary of provision, charge-offs and recoveries by loan category [Roll Forward] | |||
Beginning balance | 3,525 | 4,032 | |
Charge-offs | 0 | (131) | |
Recoveries | 4 | 49 | |
Net (charge-offs) recoveries | 4 | (82) | |
Provision (credit) | (98) | 88 | |
Ending balance | 3,431 | 4,038 | |
Commercial Real Estate [Member] | |||
Summary of provision, charge-offs and recoveries by loan category [Roll Forward] | |||
Beginning balance | 1,853 | 1,459 | |
Charge-offs | 0 | 0 | |
Recoveries | 13 | 13 | |
Net (charge-offs) recoveries | 13 | 13 | |
Provision (credit) | 34 | 105 | |
Ending balance | 1,900 | 1,577 | |
Commercial [Member] | |||
Summary of provision, charge-offs and recoveries by loan category [Roll Forward] | |||
Beginning balance | 939 | 986 | |
Charge-offs | 0 | 0 | |
Recoveries | 27 | 321 | |
Net (charge-offs) recoveries | 27 | 321 | |
Provision (credit) | 0 | (707) | |
Ending balance | 966 | 600 | |
SBA [Member] | |||
Summary of provision, charge-offs and recoveries by loan category [Roll Forward] | |||
Beginning balance | 451 | 1,066 | |
Charge-offs | (11) | 0 | |
Recoveries | 114 | 110 | |
Net (charge-offs) recoveries | 103 | 110 | |
Provision (credit) | (178) | (298) | |
Ending balance | 376 | 878 | |
HELOC [Member] | |||
Summary of provision, charge-offs and recoveries by loan category [Roll Forward] | |||
Beginning balance | 43 | 140 | |
Charge-offs | 0 | 0 | |
Recoveries | 2 | 3 | |
Net (charge-offs) recoveries | 2 | 3 | |
Provision (credit) | (3) | (90) | |
Ending balance | 42 | 53 | |
Single Family Real Estate [Member] | |||
Summary of provision, charge-offs and recoveries by loan category [Roll Forward] | |||
Beginning balance | 103 | 192 | |
Charge-offs | 0 | 0 | |
Recoveries | 1 | 1 | |
Net (charge-offs) recoveries | 1 | 1 | |
Provision (credit) | (1) | (68) | |
Ending balance | 103 | 125 | |
Consumer [Member] | |||
Summary of provision, charge-offs and recoveries by loan category [Roll Forward] | |||
Beginning balance | 2 | 2 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Provision (credit) | (1) | 2 | |
Ending balance | $ 1 | $ 4 |
LOANS HELD FOR INVESTMENT, Impaired Financing Receivables (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | $ 12,667 | $ 11,940 |
Impaired loans with no allowance recorded | 7,198 | 7,591 |
Total loans individually evaluated for impairment | 19,865 | 19,531 |
Loans collectively evaluated for impairment | 465,087 | 459,074 |
Total loans held for investment | 484,952 | 478,605 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 12,976 | 12,267 |
Impaired loans with no allowance recorded | 11,046 | 8,973 |
Total loans individually evaluated for impairment | 24,022 | 21,240 |
Loans collectively evaluated for impairment | 465,087 | 459,074 |
Total loans held for investment | 489,109 | 480,314 |
Related Allowance for Credit Losses [Abstract] | ||
Impaired loans with an allowance recorded | 708 | 573 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 708 | 573 |
Loans collectively evaluated for impairment | 6,111 | 6,343 |
Total loans held for investment | 6,819 | 6,916 |
Impaired loans guaranteed by government agencies | 2,200 | 2,200 |
Impaired loans with a specific valuation allowance under ASC 310 | 12,667 | 11,940 |
Impaired loans without a specific valuation allowance under ASC 310 | 7,198 | 7,591 |
Total impaired loans | 19,865 | 19,531 |
Valuation allowance related to impaired loans | 708 | 573 |
Manufactured Housing [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 5,588 | 4,914 |
Impaired loans with no allowance recorded | 3,386 | 3,672 |
Total loans individually evaluated for impairment | 8,974 | 8,586 |
Loans collectively evaluated for impairment | 173,044 | 169,305 |
Total loans held for investment | 182,018 | 177,891 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 5,670 | 4,964 |
Impaired loans with no allowance recorded | 5,072 | 3,975 |
Total loans individually evaluated for impairment | 10,742 | 8,939 |
Loans collectively evaluated for impairment | 173,044 | 169,305 |
Total loans held for investment | 183,786 | 178,244 |
Related Allowance for Credit Losses [Abstract] | ||
Impaired loans with an allowance recorded | 514 | 483 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 514 | 483 |
Loans collectively evaluated for impairment | 2,917 | 3,042 |
Total loans held for investment | 3,431 | 3,525 |
Impaired loans with a specific valuation allowance under ASC 310 | 5,588 | 4,914 |
Impaired loans without a specific valuation allowance under ASC 310 | 3,386 | 3,672 |
Total impaired loans | 8,974 | 8,586 |
Valuation allowance related to impaired loans | 514 | 483 |
Commercial Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 898 | 376 |
Impaired loans with no allowance recorded | 1,689 | 2,247 |
Total loans individually evaluated for impairment | 2,587 | 2,623 |
Loans collectively evaluated for impairment | 182,871 | 176,868 |
Total loans held for investment | 185,458 | 179,491 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 1,002 | 439 |
Impaired loans with no allowance recorded | 3,056 | 2,734 |
Total loans individually evaluated for impairment | 4,058 | 3,173 |
Loans collectively evaluated for impairment | 182,871 | 176,868 |
Total loans held for investment | 186,929 | 180,041 |
Related Allowance for Credit Losses [Abstract] | ||
Impaired loans with an allowance recorded | 7 | 3 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 7 | 3 |
Loans collectively evaluated for impairment | 1,893 | 1,850 |
Total loans held for investment | 1,900 | 1,853 |
Impaired loans with a specific valuation allowance under ASC 310 | 898 | 376 |
Impaired loans without a specific valuation allowance under ASC 310 | 1,689 | 2,247 |
Valuation allowance related to impaired loans | 7 | 3 |
Commercial [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 2,917 | 2,966 |
Impaired loans with no allowance recorded | 146 | 44 |
Total loans individually evaluated for impairment | 3,063 | 3,010 |
Loans collectively evaluated for impairment | 72,282 | 74,339 |
Total loans held for investment | 75,345 | 77,349 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 2,917 | 2,966 |
Impaired loans with no allowance recorded | 152 | 50 |
Total loans individually evaluated for impairment | 3,069 | 3,016 |
Loans collectively evaluated for impairment | 72,282 | 74,339 |
Total loans held for investment | 75,351 | 77,355 |
Related Allowance for Credit Losses [Abstract] | ||
Impaired loans with an allowance recorded | 166 | 45 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 166 | 45 |
Loans collectively evaluated for impairment | 800 | 894 |
Total loans held for investment | 966 | 939 |
Impaired loans with a specific valuation allowance under ASC 310 | 2,917 | 2,966 |
Impaired loans without a specific valuation allowance under ASC 310 | 146 | 44 |
Total impaired loans | 3,063 | 3,010 |
Valuation allowance related to impaired loans | 166 | 45 |
SBA [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 1,302 | 1,695 |
Impaired loans with no allowance recorded | 1,414 | 1,052 |
Total loans individually evaluated for impairment | 2,716 | 2,747 |
Loans collectively evaluated for impairment | 10,504 | 10,997 |
Total loans held for investment | 13,220 | 13,744 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 1,425 | 1,909 |
Impaired loans with no allowance recorded | 2,040 | 1,553 |
Total loans individually evaluated for impairment | 3,465 | 3,462 |
Loans collectively evaluated for impairment | 10,504 | 10,997 |
Total loans held for investment | 13,969 | 14,459 |
Related Allowance for Credit Losses [Abstract] | ||
Impaired loans with an allowance recorded | 3 | 25 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 3 | 25 |
Loans collectively evaluated for impairment | 373 | 426 |
Total loans held for investment | 376 | 451 |
Impaired loans with a specific valuation allowance under ASC 310 | 1,302 | 1,695 |
Impaired loans without a specific valuation allowance under ASC 310 | 1,414 | 1,052 |
Total impaired loans | 2,716 | 2,747 |
Valuation allowance related to impaired loans | 3 | 25 |
HELOC [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 19 |
Impaired loans with no allowance recorded | 289 | 294 |
Total loans individually evaluated for impairment | 289 | 313 |
Loans collectively evaluated for impairment | 10,596 | 10,621 |
Total loans held for investment | 10,885 | 10,934 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 19 |
Impaired loans with no allowance recorded | 308 | 309 |
Total loans individually evaluated for impairment | 308 | 328 |
Loans collectively evaluated for impairment | 10,596 | 10,621 |
Total loans held for investment | 10,904 | 10,949 |
Related Allowance for Credit Losses [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 42 | 43 |
Total loans held for investment | 42 | 43 |
Impaired loans with a specific valuation allowance under ASC 310 | 0 | 19 |
Impaired loans without a specific valuation allowance under ASC 310 | 289 | 294 |
Total impaired loans | 289 | 313 |
Valuation allowance related to impaired loans | 0 | 0 |
Single Family Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 1,962 | 1,970 |
Impaired loans with no allowance recorded | 274 | 282 |
Total loans individually evaluated for impairment | 2,236 | 2,252 |
Loans collectively evaluated for impairment | 15,683 | 16,821 |
Total loans held for investment | 17,919 | 19,073 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 1,962 | 1,970 |
Impaired loans with no allowance recorded | 418 | 352 |
Total loans individually evaluated for impairment | 2,380 | 2,322 |
Loans collectively evaluated for impairment | 15,683 | 16,821 |
Total loans held for investment | 18,063 | 19,143 |
Related Allowance for Credit Losses [Abstract] | ||
Impaired loans with an allowance recorded | 18 | 17 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 18 | 17 |
Loans collectively evaluated for impairment | 85 | 86 |
Total loans held for investment | 103 | 103 |
Impaired loans with a specific valuation allowance under ASC 310 | 1,962 | 1,970 |
Impaired loans without a specific valuation allowance under ASC 310 | 274 | 282 |
Total impaired loans | 2,236 | 2,252 |
Valuation allowance related to impaired loans | 18 | 17 |
Consumer [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 107 | 123 |
Total loans held for investment | 107 | 123 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 107 | 123 |
Total loans held for investment | 107 | 123 |
Related Allowance for Credit Losses [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 1 | 2 |
Total loans held for investment | 1 | 2 |
Impaired loans with a specific valuation allowance under ASC 310 | 0 | 0 |
Impaired loans without a specific valuation allowance under ASC 310 | 0 | 0 |
Valuation allowance related to impaired loans | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | $ 19,865 | $ 19,531 |
Manufactured Housing [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 8,974 | 8,586 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 870 | 875 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 1,717 | 1,748 |
Commercial [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 3,063 | 3,010 |
SBA [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 2,716 | 2,747 |
HELOC [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 289 | 313 |
Single Family Real Estate [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | $ 2,236 | $ 2,252 |
LOANS HELD FOR INVESTMENT, Average Investment in Impaired Loans by Class (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | $ 17,493 | $ 16,192 |
Interest Income | 332 | 136 |
Manufactured Housing [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 8,785 | 7,288 |
Interest Income | 185 | 115 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 873 | 2,269 |
Interest Income | 3 | 0 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 1,733 | 1,133 |
Interest Income | 23 | 9 |
Commercial Real Estate [Member] | Land [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 0 | 0 |
Interest Income | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 0 | 0 |
Interest Income | 0 | 0 |
Commercial [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 3,038 | 3,003 |
Interest Income | 42 | 0 |
SBA [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 311 | 1,814 |
Interest Income | 46 | 11 |
HELOC [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 508 | 85 |
Interest Income | 4 | 0 |
Single Family Real Estate [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 2,245 | 600 |
Interest Income | 29 | 1 |
Consumer [Member] | ||
Average recorded investment and interest income recognized [Abstract] | ||
Average Investment in Impaired Loans | 0 | 0 |
Interest Income | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Recorded Investment in Certain Types of Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Financing receivable recorded investment [Abstract] | |||
Nonaccrual loans | $ 6,711 | $ 6,956 | |
Government guaranteed portion of loans included above | 1,904 | 1,943 | |
Troubled debt restructured loans, gross | 14,388 | 13,741 | |
Loans 30 through 89 days past due with interest accruing | $ 449 | $ 0 | |
Allowance for loan losses to gross loans held for investment | 1.41% | 1.44% | |
Number of days a loan is past due after which accrual of interest is discontinued | 90 days | ||
Foregone interest on nonaccrual and troubled debt restructured loans | $ 100 | $ 300 |
LOANS HELD FOR INVESTMENT, Nonaccrual Loans, Net of SBA Guarantee (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | $ 6,711 | $ 6,956 |
Number of days a loan is past due after which guaranteed portion of SBA loan is repurchased from investors | 120 days | |
Manufactured Housing [Member] | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | $ 1,460 | 1,615 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | 870 | 875 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | 1,453 | 1,481 |
Commercial [Member] | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | 44 | 44 |
SBA [Member] | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | 2,302 | 2,346 |
Consumer [Member] | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | 0 | 0 |
HELOC [Member] | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | 308 | 313 |
Single Family Real Estate [Member] | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ||
Nonaccrual loans, net | $ 274 | $ 282 |
LOANS HELD FOR INVESTMENT, Credit Quality Indicators (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | $ 482,113 | $ 476,363 |
Total loans held for investment | 484,952 | 478,605 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 460,420 | 450,809 |
Total loans held for investment | 460,420 | 450,809 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 9,903 | 10,027 |
Total loans held for investment | 9,903 | 10,027 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 11,746 | 15,463 |
Total loans held for investment | 14,585 | 17,705 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 44 | 64 |
Total loans held for investment | 44 | 64 |
SBA Guarantee [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 2,839 | 2,242 |
SBA Guarantee [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
SBA Guarantee [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
SBA Guarantee [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 2,839 | 2,242 |
SBA Guarantee [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Manufactured Housing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 182,018 | 177,891 |
Total loans held for investment | 182,018 | 177,891 |
Manufactured Housing [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 178,258 | 173,971 |
Manufactured Housing [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Manufactured Housing [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 3,760 | 3,920 |
Manufactured Housing [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 185,458 | 179,491 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 138,240 | 138,616 |
Total loans held for investment | 138,240 | 138,616 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 134,916 | 131,857 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 2,454 | 2,481 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 870 | 4,278 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 24,903 | 25,562 |
Total loans held for investment | 24,903 | 25,562 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 22,611 | 23,231 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 575 | 583 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 1,717 | 1,748 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial Real Estate [Member] | Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 2,948 | 2,895 |
Total loans held for investment | 2,948 | 2,895 |
Commercial Real Estate [Member] | Land [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 2,948 | 2,895 |
Commercial Real Estate [Member] | Land [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial Real Estate [Member] | Land [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial Real Estate [Member] | Land [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 19,367 | 12,418 |
Total loans held for investment | 19,367 | 12,418 |
Commercial Real Estate [Member] | Construction [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 19,367 | 12,418 |
Commercial Real Estate [Member] | Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 75,345 | 77,349 |
Total loans held for investment | 75,345 | 77,349 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 64,876 | 66,788 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 6,762 | 6,805 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 3,707 | 3,756 |
Commercial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
SBA [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 13,220 | 13,744 |
SBA [Member] | Non-guaranteed [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 10,381 | 11,502 |
SBA [Member] | Non-guaranteed [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 9,626 | 10,733 |
SBA [Member] | Non-guaranteed [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 112 | 158 |
SBA [Member] | Non-guaranteed [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 599 | 547 |
SBA [Member] | Non-guaranteed [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 44 | 64 |
HELOC [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 10,885 | 10,934 |
Total loans held for investment | 10,885 | 10,934 |
HELOC [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 10,071 | 10,115 |
HELOC [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
HELOC [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 814 | 819 |
HELOC [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Single Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 17,919 | 19,073 |
Total loans held for investment | 17,919 | 19,073 |
Single Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 17,640 | 18,678 |
Single Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Single Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 279 | 395 |
Single Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 107 | 123 |
Total loans held for investment | 107 | 123 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 107 | 123 |
Consumer [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | 0 | 0 |
Consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment, net | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Troubled Debt Restructuring (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016
USD ($)
Loan
Nonpayment
|
Mar. 31, 2015
USD ($)
Loan
|
Dec. 31, 2015
USD ($)
|
|
Troubled debt restructurings (TDR) [Abstract] | |||
Number of loans | Loan | 9 | 3 | |
Pre-modification recorded investment | $ 845,000 | $ 174,000 | |
Post Modification Recorded Investment | 845,000 | 174,000 | |
Balance of loans | 14,388,000 | $ 13,741,000 | |
Effect on allowance for loan losses | $ 49,000 | $ 4,000 | |
Number of consecutive non-payments for a TDR loan to be deemed default | Nonpayment | 2 | ||
Average rate concessions | 0.89% | 0.00% | |
Average Extension | 164 months | 13 months | |
Trouble debt restructurings with payment defaults | $ 0 | $ 0 | |
Rate Reduction [Member] | |||
Troubled debt restructurings (TDR) [Abstract] | |||
Balance of loans | 743,000 | 0 | |
Term Extension [Member] | |||
Troubled debt restructurings (TDR) [Abstract] | |||
Balance of loans | $ 845,000 | $ 156,000 | |
Manufactured Housing [Member] | |||
Troubled debt restructurings (TDR) [Abstract] | |||
Number of loans | Loan | 8 | 3 | |
Pre-modification recorded investment | $ 743,000 | $ 174,000 | |
Post Modification Recorded Investment | 743,000 | 174,000 | |
Effect on allowance for loan losses | 49,000 | 4,000 | |
Manufactured Housing [Member] | Rate Reduction [Member] | |||
Troubled debt restructurings (TDR) [Abstract] | |||
Balance of loans | 743,000 | 0 | |
Manufactured Housing [Member] | Term Extension [Member] | |||
Troubled debt restructurings (TDR) [Abstract] | |||
Balance of loans | $ 743,000 | $ 156,000 | |
Commercial [Member] | |||
Troubled debt restructurings (TDR) [Abstract] | |||
Number of loans | Loan | 1 | ||
Pre-modification recorded investment | $ 102,000 | ||
Post Modification Recorded Investment | 102,000 | ||
Effect on allowance for loan losses | 0 | ||
Commercial [Member] | Rate Reduction [Member] | |||
Troubled debt restructurings (TDR) [Abstract] | |||
Balance of loans | 0 | ||
Commercial [Member] | Term Extension [Member] | |||
Troubled debt restructurings (TDR) [Abstract] | |||
Balance of loans | $ 102,000 |
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE [Abstract] | ||
Balance, beginning of period | $ 198 | $ 137 |
Additions | 114 | 222 |
Proceeds from dispositions | (138) | (40) |
Gains on sales, net | 2 | 1 |
Balance, end of period | $ 176 | $ 320 |
FAIR VALUE MEASUREMENT, Fair Value of Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets [Abstract] | ||
Investment securities available-for-sale | $ 28,717 | $ 23,441 |
Recurring [Member] | ||
Assets [Abstract] | ||
Investment securities available-for-sale | 28,717 | 23,441 |
Interest only strips | 210 | 226 |
Servicing assets | 180 | 182 |
Total | 29,107 | 23,849 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Investment securities available-for-sale | 75 | 63 |
Interest only strips | 0 | 0 |
Servicing assets | 0 | 0 |
Total | 75 | 63 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Investment securities available-for-sale | 28,642 | 23,378 |
Interest only strips | 0 | 0 |
Servicing assets | 0 | 0 |
Total | 28,642 | 23,378 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Interest only strips | 210 | 226 |
Servicing assets | 180 | 182 |
Total | $ 390 | $ 408 |
FAIR VALUE MEASUREMENT, Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||||
Impaired loans | $ 19,865 | $ 19,531 | ||
Foreclosed real estate and repossessed assets | 176 | 198 | $ 320 | $ 137 |
Loans held-for-sale at carrying value | 61,897 | 64,488 | ||
Non-recurring [Member] | ||||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||||
Impaired loans | 4,698 | 4,545 | ||
Foreclosed real estate and repossessed assets | 176 | 198 | ||
Total | 4,874 | 4,743 | ||
Non-recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||||
Impaired loans | 0 | 0 | ||
Foreclosed real estate and repossessed assets | 0 | 0 | ||
Total | 0 | 0 | ||
Non-recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||||
Impaired loans | 4,698 | 4,545 | ||
Foreclosed real estate and repossessed assets | 176 | 198 | ||
Total | 4,874 | 4,743 | ||
Non-recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||||
Impaired loans | 0 | 0 | ||
Foreclosed real estate and repossessed assets | 0 | 0 | ||
Total | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | $ 28,937 | $ 35,519 |
Interest-bearing deposits in other financial institutions | 100 | 99 |
FRB and FHLB stock | 3,259 | 3,259 |
Investment securities | 35,633 | 30,466 |
Loans held for sale | 61,897 | 64,488 |
Loans, net | 540,162 | 472,058 |
Financial liabilities [Abstract] | ||
Deposits | 546,075 | 544,338 |
Other borrowings | 10,500 | 10,500 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 28,937 | 35,519 |
Interest-bearing deposits in other financial institutions | 100 | 99 |
FRB and FHLB stock | 3,259 | 3,259 |
Investment securities | 36,024 | 30,840 |
Loans held for sale | 66,572 | 69,262 |
Loans, net | 550,205 | 472,405 |
Financial liabilities [Abstract] | ||
Deposits | 546,796 | 544,350 |
Other borrowings | 10,499 | 10,489 |
Fair Value [Member] | Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 28,937 | 35,519 |
Interest-bearing deposits in other financial institutions | 100 | 99 |
FRB and FHLB stock | 0 | 0 |
Investment securities | 75 | 63 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Other borrowings | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits in other financial institutions | 0 | 0 |
FRB and FHLB stock | 3,259 | 3,259 |
Investment securities | 35,949 | 30,777 |
Loans held for sale | 66,572 | 69,262 |
Loans, net | 535,552 | 458,726 |
Financial liabilities [Abstract] | ||
Deposits | 546,796 | 544,350 |
Other borrowings | 10,499 | 10,489 |
Fair Value [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits in other financial institutions | 0 | 0 |
FRB and FHLB stock | 0 | 0 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 14,653 | 13,679 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Other borrowings | 0 | 0 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks outstanding | 100 | 100 |
Unfunded Loan Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks outstanding | $ 46,900 | $ 46,900 |
OTHER BORROWINGS AND CONVERTIBLE DEBENTURES (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Oct. 29, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Federal Funds Purchased Lines [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Federal funds borrowing lines at correspondent banks | $ 20,000,000 | |||
Federal funds amount outstanding | 0 | |||
Federal Home Loan Bank Advances [Member] | ||||
Line of Credit Facility [Line Items] | ||||
FHLB advances | $ 5,000,000 | $ 5,000,000 | ||
FHLB advances borrowed weighted average rate | 0.55% | 0.55% | ||
Letter of credit with FHLB | $ 90,000,000 | |||
Securities pledged to FHLB | 35,600,000 | $ 30,500,000 | ||
Loans pledged to FHLB | 149,400,000 | 140,000,000 | ||
Available for additional borrowing | 50,600,000 | 67,800,000 | ||
Total FHLB interest expense | $ 7,000 | $ 600,000 | ||
Federal Reserve Bank Advances [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Length of time advances are collateralized | 28 days | |||
Outstanding balance | $ 0 | 0 | ||
Available borrowing capacity | 93,700,000 | 94,000,000 | ||
Line of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding balance | $ 5,500,000 | |||
Term of agreement | 1 year | |||
Maximum borrowing capacity | $ 10,000,000 | |||
Interest rate | 4.187% | |||
Percentage of compensating deposit with the lender | 25.00% | |||
Compensating deposit | $ 1,400,000 | $ 1,400,000 | ||
Minimum debt service coverage ratio | 1.65 | |||
Minimum Tier 1 leverage ratio | 7.00% | |||
Minimum total risk-based capital ratio | 10.00% | |||
Quarterly unused commitment fee | 0.50% | |||
Line of Credit [Member] | Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Quarterly interest rate | 5.00% | |||
Maturity date | Oct. 31, 2021 |
STOCKHOLDERS' EQUITY, Changes in Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Changes in other comprehensive income (loss) by component, net of tax [Roll Forward] | ||
Balance | $ 61,944 | |
Net current-period other comprehensive income (loss) | 117 | $ (14) |
Balance | 62,439 | |
Unrealized Holding Gains (Losses) on AFS [Member] | ||
Changes in other comprehensive income (loss) by component, net of tax [Roll Forward] | ||
Balance | (68) | 31 |
Other comprehensive income (loss) before reclassifications | 117 | (14) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current-period other comprehensive income (loss) | 117 | (14) |
Balance | $ 49 | $ 17 |
STOCKHOLDERS' EQUITY, Common Stock Warrants and Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Class of Stock [Line Items] | ||
Common stock dividend paid | $ 246 | $ 164 |
Common Stock Warrant [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of shares that can be issued against warrants (in shares) | 521,158 | |
Exercise price of warrants (in dollars per share) | $ 4.49 | |
Expiration date of warrants | Dec. 19, 2018 | |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock repurchase (in shares) | 107,253 | |
Common stock repurchase, average price (in dollars per share) | $ 6.99 | |
Common stock dividend paid | $ 200 | $ 200 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Reconciliation of basic and diluted earnings per share [Abstract] | ||
Net income | $ 1,283 | $ 1,770 |
Less: dividends and accretion on preferred stock and discount on partial redemption | 0 | 121 |
Net income available to common stockholders | $ 1,283 | $ 1,649 |
Weighted average number of common shares outstanding - basic (in shares) | 8,169 | 8,203 |
Weighted average number of common shares outstanding - diluted (in shares) | 8,467 | 8,501 |
Earnings per share [Abstract] | ||
Basic (in dollars per share) | $ 0.16 | $ 0.20 |
Diluted (in dollars per share) | $ 0.15 | $ 0.19 |
CAPITAL REQUIREMENT (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Well-capitalized ratios, Total Risk-Based Capital Ratio | 10.00% | 10.00% |
Well capitalized ratios, Tier 1 Risk-Based Capital Ratio | 8.00% | 8.00% |
Well capitalized ratios, Common Equity Tier 1 Capital | 6.50% | 6.50% |
Well capitalized ratios, Tier 1 Leverage Capital | 5.00% | 5.00% |
Minimum capital ratios, Total Risk-Based Capital Ratio | 8.00% | 8.00% |
Minimum capital ratios, Tier 1 Risk-Based Capital Ratio | 6.00% | 6.00% |
Minimum capital ratios, Common Equity Tier 1 Capital | 4.50% | 4.50% |
Minimum capital ratios, Tier 1 Leverage Capital | 4.00% | 4.00% |
Minimum [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Consolidated asset requirement under the Small Bank Holding Policy Statement final ruling | $ 500,000 | |
Maximum [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Consolidated asset requirement under the Small Bank Holding Policy Statement final ruling | 1,000,000 | |
CWB [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital | 71,625 | $ 70,199 |
Tier 1 Capital | 65,150 | 63,788 |
Common Equity Tier 1 Capital | 65,150 | 63,788 |
Risk-Weighted Assets | 517,311 | 512,364 |
Adjusted Average Assets | $ 617,817 | $ 614,331 |
Total Risk-Based Capital Ratio | 13.85% | 13.70% |
Tier 1 Risk-Based Capital Ratio | 12.59% | 12.45% |
Common Equity Tier 1 Ratio | 12.59% | 12.45% |
Tier 1 Leverage Ratio | 10.55% | 10.38% |
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