Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2018	May 11, 2018
Document and Entity Information
Entity Registrant Name	Sterling Bancorp, Inc.
Entity Central Index Key	0001680379
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		53,002,963
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 37,541	$ 40,147
Investment securities	124,956	126,848
Mortgage loans held for sale	200,467	112,866
Loans, net of allowance for loan losses of $19,132 and $18,457	2,580,560	2,594,357
Accrued interest receivable	11,936	11,493
Mortgage servicing rights, net	7,780	6,496
Leasehold improvements and equipment, net	7,705	7,043
Federal Home Loan Bank stock, at cost	22,950	22,950
Cash surrender value of bank-owned life insurance	30,837	30,680
Deferred tax asset, net	7,234	6,847
Other assets	2,366	2,231
Total assets	3,034,332	2,961,958
Liabilities:
Noninterest-bearing deposits	75,062	73,682
Interest-bearing deposits	2,216,103	2,171,428
Total deposits	2,291,165	2,245,110
Federal Home Loan Bank borrowings	342,937	338,000
Subordinated notes, net	64,923	64,889
Accrued expenses and other liabilities	46,795	40,661
Total liabilities	2,745,820	2,688,660
Shareholders' equity:
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding
Additional paid-in capital	12,425	12,416
Retained earnings	164,984	149,816
Accumulated other comprehensive loss	(135)	(172)
Total shareholders' equity	288,512	273,298
Total liabilities and shareholders' equity	3,034,332	2,961,958
Common Stock
Shareholders' equity:
Common stock, voting, no par value, authorized 500,000,000 shares; issued and outstanding 53,002,963 and 52,963,308 shares at March 31, 2018 and December 31, 2017, respectively	$ 111,238	$ 111,238

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Allowance for loan losses	$ 19,132	$ 18,457
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common Stock
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	53,002,963	52,963,308
Common stock, outstanding (in shares)	53,002,963	52,963,308

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest income
Interest and fees on loans	$ 35,856	$ 26,759
Interest and dividends on investment securities	819	365
Other interest	114	19
Total interest income	36,789	27,143
Interest expense
Interest on deposits	6,589	3,534
Interest on Federal Home Loan Bank borrowings	833	830
Interest on subordinated notes and other	1,172	908
Total interest expense	8,594	5,272
Net interest income	28,195	21,871
Provision for loan losses	641	600
Net interest income after provision for loan losses	27,554	21,271
Non-interest income
Service charges and fees	618	409
Investment management and advisory fees	623	552
Gain on sale of mortgage loans held for sale	65	187
Gain on sale of portfolio loans	3,941	3,865
Unrealized losses on equity securities	(64)
Income on cash surrender value of bank-owned life insurance	295	291
Other income	559	282
Total non-interest income	6,037	5,586
Non-interest expense
Salaries and employee benefits	6,649	5,410
Occupancy and equipment	1,546	1,389
Professional fees	622	369
Advertising and marketing	349	192
FDIC assessments	543	242
Data processing	288	207
Other	1,506	1,283
Total non-interest expense	11,503	9,092
Income before income taxes	22,088	17,765
Income tax expense	6,339	7,349
Net income	$ 15,749	$ 10,416
Income per share, basic and diluted (in dollars per share)	$ 0.30	$ 0.23
Weighted average common shares outstanding, basic and diluted	52,963,308	45,271,000

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 15,749	$ 10,416
Other comprehensive income (loss), net of tax:
Unrealized losses on investment securities, arising during the year, net of income tax of ($3) and ($16) in 2018 and 2017, respectively	(13)	(29)
Total other comprehensive loss	(13)	(29)
Comprehensive income	$ 15,736	$ 10,387

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Unrealized losses on available for sale debt securities, arising during the year, tax effect	$ (3)	$ (16)

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock Common stock, voting	Common Stock Common stock, non-voting	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at beginning of the period at Dec. 31, 2016	$ 22,863	$ 2,885	$ 15,118	$ 121,446	$ (40)	$ 162,272
Increase (Decrease) in Stockholders' Equity
Net income				10,416		10,416
Capital contributions from controlling member of merged entity (Note 1)			218			218
Other comprehensive loss					(29)	(29)
Dividends distributed ($0.04 and $0.01 per share for the period three months ended March 31, 2017 and 2018)				(1,767)		(1,767)
Balance at end of the period at Mar. 31, 2017	22,863	$ 2,885	15,336	130,095	(69)	171,110
Balance at beginning of the period at Dec. 31, 2017	111,238		12,416	149,816	(172)	273,298
Increase (Decrease) in Stockholders' Equity
Cumulative effect adjustment, reclassification of unrealized losses on equity securities (Note 3)				(50)	50
Net income				15,749		15,749
Stock-based compensation			9			9
Other comprehensive loss					(13)	(13)
Dividends distributed ($0.04 and $0.01 per share for the period three months ended March 31, 2017 and 2018)				(531)		(531)
Balance at end of the period at Mar. 31, 2018	$ 111,238		$ 12,425	$ 164,984	$ (135)	$ 288,512

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows From Operating Activities
Net income	$ 15,749	$ 10,416
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	641	600
Deferred income taxes	(387)	327
Unrealized losses on equity securities	64
Amortization and (accretion), net, debt securities available for sale	(69)	3
Depreciation and amortization of leasehold improvements and equipment	318	268
Amortization of intangible asset	113	113
Origination, premium paid and purchase of loans, net of principal payments, mortgage loans held for sale	(7,424)	(6,326)
Proceeds from the sale of mortgage loans held for sale	6,165	9,695
Gain on sale of mortgage loans held for sale	(65)	(187)
Gain on sale of portfolio loans	(3,941)	(3,865)
Increase in cash surrender value of bank-owned life insurance	(157)	(166)
Net change in servicing assets	237	250
Other	43	33
Change in operating assets and liabilities:
Accrued interest receivable	(443)	(261)
Other assets	(245)	153
Accrued expenses and other liabilities	6,134	8,783
Net cash provided by operating activities	16,733	19,836
Cash Flows From Investing Activities
Maturities and principal receipts of investment securities	26,615	23,671
Purchases of investment securities	(24,734)	(35,234)
Loans originated, net of repayments	(182,870)	(123,695)
Proceeds from the sale of portfolio loans	112,169	105,184
Purchase of leasehold improvements and equipment	(980)	(659)
Net cash used in investing activities	(69,800)	(30,733)
Cash Flows From Financing Activities
Net increase in deposits	46,055	107,003
Proceeds from advances from Federal Home Loan Bank	505,000	660,000
Repayments of advances from Federal Home Loan Bank	(513,000)	(735,000)
Net change in line of credit with Federal Home Loan Bank	12,937	(11,083)
Capital contributions from controlling member of merged entity		218
Dividends paid to shareholders	(531)	(1,767)
Net cash provided by financing activities	50,461	19,371
Net increase (decrease) in cash and due from banks	(2,606)	8,474
Cash and due from banks at beginning of period	40,147	22,124
Cash and due from banks at end of period	37,541	30,598
Cash paid:
Interest	6,333	$ 5,011
Noncash investing and financing activities:
Transfers of residential real estate loans to mortgage loans held for sale	198,184
Transfers of residential real estate loans from mortgage loans held for sale	$ 2,158

Nature of Operations and Basis of Presentation	3 Months Ended
Nature of Operations and Basis of Presentation	Mar. 31, 2018
Nature of Operations and Basis of Presentation
Nature of Operations and Basis of Presentation	Note 1—Nature of Operations and Basis of Presentation Nature of Operations Sterling Bancorp, Inc. (the “Company”) is a unitary thrift holding company that was incorporated in 1989 and the parent company to its wholly owned subsidiary, Sterling Bank and Trust, F.S.B. (the “Bank”). The Company’s business is conducted through the Bank which was formed in 1984. The Bank originates construction, residential and commercial real estate loans, commercial lines of credit, and other consumer loans and receives deposits from its customers located primarily in California and Michigan. The Bank operates through a network of 28 branches: one branch at its headquarters, 25 branches located in San Francisco and Los Angeles, California and two branches located in New York, New York. Additionally, the Bank’s operations include a registered investment advisory business with assets held under management of $451 million at March 31, 2018. The Company is headquartered in Southfield, Michigan and its operations are in the financial services industry. Management evaluates the performance of its business based on one reportable segment, community banking. The Company is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve (“Federal Reserve”). The Bank is a federally chartered stock savings bank which is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency (“OCC”) of the U.S. Department of Treasury and the Federal Deposit Insurance Corporation (“FDIC”) and is a member of the Federal Home Loan Bank (“FHLB”) system. Initial Public Offering In November 2017, the Company completed its initial public offering whereby it issued and sold 7,692,308 shares of common stock at a public offering price of $12.00 per share. The Company received net proceeds of $85.5 million after deducting underwriting discounts and commissions of $5.5 million and other offering expenses of $1.3 million. The Company continues to use the proceeds to support the Bank’s growth initiatives. Basis of Presentation The condensed consolidated balance sheet as of March 31, 2018, and the condensed consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the three months ended March 31, 2018 and 2017 are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in the opinion of management, all adjustments, consisting of a normal and recurring nature that are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The financial data and other financial information disclosed in these notes to the condensed consolidated financial statements related to these periods are also unaudited. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or for any future annual or interim period. The consolidated balance sheet at December 31, 2017 included herein was derived from the audited financial statements as of that date. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Merger of Quantum Fund, LLC On April 24, 2017, the Bank acquired all the outstanding equity interests of Quantum Fund, LLC, an entity controlled by the Company’s principal shareholder who owned, directly and indirectly 80% of the members’ interests with the remaining 20% members’ interest held by a member of the Board of Directors of the Company and Bank, for $2.9 million in cash. The entity operated a registered investment advisory business with assets held under management of approximately $425 million. In 2017, the Bank recorded the assets and liabilities transferred at their carrying amounts, consisting primarily of a customer-related intangible asset, in the accounts of the entity transferred. Prior to 2017, the consolidated financial statements have been retrospectively adjusted to include the results of the Company and its wholly-owned subsidiary, and the entity under common control on a combined basis, since the entities were under common control.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2—Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the results of the Company and its wholly-owned subsidiary, and an entity under common control that was merged with the Company in April 2017 (Note 1). All significant intercompany accounts and transactions have been eliminated in the consolidation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value Measurements

The Bank utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Bank uses present value techniques and other valuations methods, as disclosed in Note 11, to estimate the fair value of its financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used.

Investment securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Bank may be required to record other assets and liabilities on a nonrecurring basis, such as impaired loans, other real estate owned, nonmarketable equity securities and certain other assets and liabilities. These nonrecurring fair value adjustments generally involve write-downs of individual assets or application of lower of amortized cost or fair value accounting.

Concentration of Credit Risk

The Company’s loan portfolio consists primarily of residential real estate loans which are collateralized by real estate. At March 31, 2018 and December 31, 2017, residential real estate loans accounted for 82%, of the loan portfolio. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California which are dependent on the area economy for their livelihoods and servicing of their loan obligation. At March 31, 2018 and December 31, 2017, approximately 96% and 95% of the loan portfolio was originated in California, respectively.

Investment Securities

Investment securities includes available for sale debt securities and equity securities.

Debt Securities

Debt securities are classified as either available for sale or held to maturity. Management determines the classification of the investment securities when they are purchased.

Debt securities available for sale are stated at fair value, with unrealized gains and losses excluded from income and shown as a separate component of shareholders’ equity in accumulated other comprehensive income (loss), net of income taxes. Held to maturity securities are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The amortized cost of debt securities classified as held to maturity or available for sale is adjusted for amortization of premiums and accretion of discounts over the contractual life of the investment security using the effective interest method or, in the case of mortgage-backed securities, over the estimated life of the investment security using the effective yield method.

Interest income includes amortization or accretion of purchase premium or discount. Gains and losses on sales are recorded on the settlement date and determined using the specific identification method.

Management evaluates the debt securities for other-than-temporary impairment at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In determining other-than-temporary impairment for debt securities, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether a decline is other-than-temporary involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. A charge is recognized against income for all or a portion of the impairment if the loss is determined to be other than temporary.

If the Bank intends to sell the debt security or it is more likely than not that the Bank will be required to sell the debt security prior to the recovery of its amortized cost basis, the debt security is written down to fair value, and the full amount of any impairment charge is recorded as a loss in the condensed consolidated statements of income. If the Bank does not intend to sell the debt security and it is more likely than not that the Bank will not be required to sell the debt security prior to recovery of its amortized cost basis, only the current period credit loss of any impairment of a debt security is recognized in the condensed consolidated statements of income, with the remaining impairment recorded in other comprehensive income (loss).

Equity Securities

Beginning January 1, 2018, equity securities with readily determinable fair values are stated at fair value with unrealized and realized gains and losses reported in income. Those equity securities without readily determinable fair values are recorded at cost less any impairments, adjusted for subsequent observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any changes in the carrying value of the equity investments are recognized in net income. Refer to Note 3, Investment Securities.

For periods prior to January 1, 2018, equity securities were classified as available for sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax.

The Company performs a qualitative assessment each reporting period to identify impairment. When a qualitative assessment indicates that an impairment exists, the Company determines the fair value of the investment and records an impairment loss equal to the difference between the fair value and the carrying amount of the investment in net income.

Federal Home Loan Bank Stock

The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest additional amounts. The FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The FHLB stock does not have a readily determinable fair value and no quoted market value as the ownership is restricted to member institutions. Also, the FHLB stock is pledged as collateral on FHLB borrowings. Cash and stock dividends are reported as income in interest and dividends on investment securities in the condensed consolidated statements of income. Cash dividends received amounted $390 and $196 for the three months ended March 31, 2018 and 2017, respectively.

Revenue from Contracts with Customers

On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”), which establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts to provide goods or services to its customers. The core principle of ASC 606 requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performed obligations are satisfied.

The Company adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of the adoption date. The adoption of ASC 606 did not result in a change in the accounting for any of the in-scope revenue streams; as such no cumulative effect adjustment was recorded. The majority of the Company’s revenues are from interest income and other sources, including loans and investment securities, as well as fees related to mortgage servicing activities, that are not within the scope of ASC 606 and subject to other accounting guidance. The Company’s services that are within the scope of ASC 606 are recorded within non-interest income which includes investment management and advisory fees, service charges on deposit accounts, interchange income and other service charges and fees. Descriptions of these activities that are within the scope of ASC 606, which are presented in the condensed consolidated statements of income as components of non-interest income, are as follows:

Service charges on deposit accounts: The Bank earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Bank fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Bank satisfies the performance obligations. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Investment management and advisory fees: The Bank enters into a contract with its customer to provide asset management services that will continue indefinitely unless terminated in writing by either party to the other. The Bank receives a quarterly management fee, payable in advance, based on the customer’s assets held under management at the beginning of the period. These fees are earned over time as the Bank provides the contracted services and are assessed based on a tiered rate applied to the market value of assets held under management. The Bank does not earn performance-based incentives.

Interchange fees: The Bank earns interchange fees from debit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Such interchange activity is shown on a net basis through other non-interest income.

Other service charges and fees: Other charges and fees includes revenue generated from wire transfers, lockboxes, and bank issuance of checks. Such fees are recognized at the point in time the customer requests the service and the service has been rendered.

The following table presents the Company’s sources of non-interest income for the three months ended March 31, 2018 and 2017 that are within the scope of ASC 606:

	Three Months Ended March 31,
	2018		2017
Non-Interest Income:
Service charges on deposit accounts*	$	52	$	40
Investment management and advisory fees	623		552
Interchange fees*	25		26
Other service charges and fees*	7		3
Not within the scope of ASC 606	5,330		4,965

Total non-interest income	$	6,037	$	5,586

Included in service charges and fees in the condensed consolidated statements of income

Contract Balances

The Bank’s noninterest revenue streams are largely based on transactional activity, or month-end revenue accruals such as investment management and advisory fees based on the customer’s assets held under management at the beginning of the period. Consideration is often received immediately or shortly thereafter, and the Bank satisfies its performance obligation and recognizes revenue over time. At March 31, 2018 and December 31, 2017, the Bank had a contract asset balance of $82 and $91 respectively, which was recorded in other assets in the condensed consolidated balance sheets.

Stock-based compensation

Compensation cost is recognized for stock options and restricted stock awards issued to employees and non-employee members of the Company’s Board of Directors, based on the fair value of these awards at the date of grant. The fair value of stock options is estimated using a Black-Scholes option pricing model and the fair value of restricted stock awards is based on the market price of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested.

Compensation cost is recorded over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recorded on a straight-line basis over the requisite service period of the entire award. The Company’s accounting policy is to record forfeitures in the period that they occur.

Income per Share, Basic and Diluted

Basic income per share represents net income divided by the weighted average number of common shares outstanding during the period. Diluted income per share represents net income divided by the weighted average number of common shares outstanding during the period, plus the effect of outstanding dilutive potential common shares.

Recently Issued Accounting Guidance

In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. ASU No. 2016-13 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2019. The Company is currently evaluating the impact of ASU No. 2016-13 but expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which ASU No. 2016-13 is effective. The Company has not yet determined the magnitude of any such one-time adjustment or the overall impact of ASU No. 2016-13 on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which require lessees to recognize the following for all leases, except for short-term leases, at the commencement date: (1) a lease liability which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessor accounting is largely unchanged. ASU No. 2016-02 will also require expanded disclosures. ASU No. 2016-02 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company is currently evaluating the impact of the ASU No. 2016-02 on its financial condition and results of operations. The Company will record a right-of-use asset and a lease liability on its consolidated balance sheet for the leases of its facilities in place at adoption of this ASU.

Investment Securities

3 Months Ended

Mar. 31, 2018

Investment Securities

Investment Securities

Note 3—Investment Securities

Debt Securities

The following tables summarize the amortized cost and fair value of debt securities available for sale at March 31, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses:

	March 31, 2018
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Available for sale:
U.S. Treasury securities	$	118,764	$	—	$	(224	)	$	118,540
Collateralized mortgage obligations	1,888		67		—			1,955
Collateralized debt obligations	311		—		(13		)	298

Total	$	120,963	$	67	$	(237	)	$	120,793

	December 31, 2017
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Available for sale:
U.S. Treasury securities	$	120,216	$	—	$	(174	)	$	120,042
Collateralized mortgage obligations	1,953		55		—			2,008
Collateralized debt obligations	606		—		(35		)	571

Total	$	122,775	$	55	$	(209	)	$	122,621

The Company held no securities of any single issuer, other than debt securities issued by the U.S. government, government agency and government-sponsored enterprises, which were in excess of 10% of shareholders’ equity as of March 31, 2018 and December 31, 2017.

There were no sales of debt securities available for sale for the three months ended March 31, 2018 and 2017.

The amortized cost and fair value of debt securities available for sale issued by U.S. Treasury at March 31, 2018 are shown by contractual maturity. Mortgage-backed securities and collateralized debt obligations are disclosed separately in the table below as the expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
U.S. Treasury securities
Due less than one year	$	118,764	$	118,540
Collateralized mortgage obligations	1,888		1,955
Collateralized debt obligations	311		298

Total	$	120,963	$	120,793

The table summarizes debt securities available for sale, at fair value, with unrealized losses at March 31, 2018 and December 31, 2017 aggregated by major security type and length of time the individual securities have been in a continuous unrealized loss position, as follows:

	March 31, 2018
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities	$	118,540	$	(224	)	$	—	$	—		$	118,540	$	(224	)
Collateralized debt obligations	—		—			298		(13		)	298		(13		)

Total	$	118,540	$	(224	)	$	298	$	(13	)	$	118,838	$	(237	)

	December 31, 2017
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities	$	120,042	$	(174	)	$	—	$	—		$	120,042	$	(174	)
Collateralized debt obligations	—		—			571		(35		)	571		(35		)

Total	$	120,042	$	(174	)	$	571	$	(35	)	$	120,613	$	(209	)

At March 31, 2018, the Company’s debt securities portfolio consisted of 9 debt securities, with 7 debt securities in an unrealized loss position. For debt securities in an unrealized loss position, management has both the intent and ability to hold these investments until the recovery of the decline; thus, the impairment was determined to be temporary. All interest and dividends are considered taxable.

The Company holds a collateralized debt obligation with a carrying value of $298 and $571 at March 31, 2018 and December 31, 2017, respectively. The security was rated high quality at inception, but it was subsequently rated by Moody’s as B1, which is defined as “extremely speculative.” The issuers of the security are primarily banks. The Company uses in-house and third party other-than-temporary impairment evaluation models to compare the present value of expected cash flows to the previous estimate to ensure there are no adverse changes in cash flows during the period. The other-than-temporary impairment model considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers. Assumptions used in the model include expected future default rates and prepayments. The security remained classified as available for sale and represented $13 and $35 of the unrealized losses reported at March 31, 2018 and December 31, 2017, respectively.

Equity Securities

Equity securities consist of an investment in a qualified community reinvestment act investment fund, which is a publicly-traded mutual fund and an investment in Pacific Coast Banker’s Bank, a thinly traded, restricted stock. At March 31, 2018 and December 31, 2017, equity securities totaled $4,163 and $4,227, respectively. Prior to January 1, 2018, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax.

On January 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) and early adopted ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2018-03”). ASU No. 2016-01 requires equity investments, except those investments accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized in net income. Also, for equity investments without readily determinable fair values, ASU No. 2016-01 provides a new measurement alternative. ASU No. 2016-01 requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in accumulated other comprehensive income. ASU No. 2018-03 clarifies certain aspects of the guidance in ASU No. 2016-01 primarily pertaining to the measurement alternative for equity securities without readily determinable fair values.

On January 1, 2018, the Company recorded a cumulative-effect adjustment to decrease retained earnings by $50 with offsetting adjustment to accumulated other comprehensive income. Beginning January 1, 2018, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income.

At March 31, 2018 and December 31, 2017, equity securities with readily determinable fair values were $3,917 and $3,981, respectively. The following is a summary of unrealized and realized gains and losses recognized in the condensed consolidated statement of income during the three months ended March 31, 2018:

	Three months ended March 31, 2018
Net losses recorded during the period on equity securities	$	(64	)
Less: Net losses recorded during the period on equity securities sold during the period	—

Unrealized losses recorded during the period on equity securities held at the reporting date	$	(64	)

The Company has elected to account for its investment in a thinly traded, restricted stock reported at $246 at March 31, 2018 and December 31, 2017 using the measurement alternative for equity securities without readily determinable fair values.

Loans

3 Months Ended

Mar. 31, 2018

Loans

Loans

Note 4—Loans

Major categories of loans were as follows:

	March 31,			December 31,
	2018			2017
Construction loans	$	179,846		$	192,319
Residential real estate loans, mortgage	2,134,447			2,132,641
Commercial real estate loans, mortgage	239,204			247,076
Commercial and industrial loans, lines of credit	46,166			40,749
Other consumer loans	29			29

Total loans	2,599,692			2,612,814
Less: allowance for loan losses	(19,132		)	(18,457		)

Loans, net	$	2,580,560		$	2,594,357

Loans with carrying values of $1,038.7 million and $968.4 million were pledged as collateral on FHLB borrowings at March 31, 2018 and December 31, 2017, respectively.

The table presents the activity in the allowance for loan losses by portfolio segment for the three months ending March 31, 2018 and 2017:

March 31, 2018	Construction		Residential Real Estate			Commercial Real Estate		Commercial Lines of Credit		Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	2,218	$	12,279		$	2,040	$	469	$	1	$	1,450	$	18,457
Provision for loan losses	760		(782		)	501		147		—		15		641
Charge offs	—		—			—		—		—		—		—
Recoveries	1		2			31		—		—		—		34

Total ending balance	$	2,979	$	11,499		$	2,572	$	616	$	1	$	1,465	$	19,132

March 31, 2017	Construction		Residential Real Estate		Commercial Real Estate		Commercial Lines of Credit		Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	679	$	11,863	$	915	$	373	$	2	$	990	$	14,822
Provision for loan losses	185		—		147		3		—		265		600
Charge offs	—		—		—		—		—		—		—
Recoveries	95		10		40		—		—		—		145

Total ending balance	$	959	$	11,873	$	1,102	$	376	$	2	$	1,255	$	15,567

The following tables present the balance in the allowance for loan losses and the recorded investment by portfolio segment and based on impairment method as of March 31, 2018 and December 31, 2017:

March 31, 2018	Construction		Residential Real Estate		Commercial Real Estate		Commercial Lines of Credit		Other Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	46	$	11	$	95	$	—	$	—	$	152
Collectively evaluated for impairment	2,979		11,453		2,561		521		1		1,465		18,980

Total ending allowance balance	$	2,979	$	11,499	$	2,572	$	616	$	1	$	1,465	$	19,132

Loans:
Loans individually evaluated for impairment	$	—	$	122	$	2,774	$	335	$	—	$	—	$	3,231
Loans collectively evaluated for impairment	179,846		2,134,325		236,430		45,831		29		—		2,596,461

Total ending loans balance	$	179,846	$	2,134,447	$	239,204	$	46,166	$	29	$	—	$	2,599,692

December 31, 2017	Construction		Residential Real Estate		Commercial Real Estate		Commercial Lines of Credit		Other Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	37	$	19	$	98	$	—	$	—	$	154
Collectively evaluated for impairment	2,218		12,242		2,021		371		1		1,450		18,303

Total ending allowance balance	$	2,218	$	12,279	$	2,040	$	469	$	1	$	1,450	$	18,457

Loans:
Loans individually evaluated for impairment	$	—	$	122	$	2,804	$	343	$	—	$	—	$	3,269
Loans collectively evaluated for impairment	192,319		2,132,519		244,272		40,406		29		—		2,609,545

Total ending loans balance	$	192,319	$	2,132,641	$	247,076	$	40,749	$	29	$	—	$	2,612,814

The following tables present information related to impaired loans by class of loans as of and for the periods indicated:

	At March 31, 2018						At December 31, 2017
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses
With no related allowance for loan losses recorded:
Commercial real estate, retail	$	1,415	$	1,228	$	—	$	1,431	$	1,247	$	—
Commercial lines of credit, private banking	145		145		—		147		147		—

Subtotal	1,560		1,373		—		1,578		1,394		—

With an allowance for loan losses recorded:
Residential real estate, first mortgage	122		122		46		122		122		37
Commercial real estate, offices	1,558		1,546		11		1,567		1,557		19
Commercial lines of credit, private banking	190		190		95		196		196		98

Subtotal	1,870		1,858		152		1,885		1,875		154

Total	$	3,430	$	3,231	$	152	$	3,463	$	3,269	$	154

	Three Months Ended March 31,
	2018						2017
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With no related allowance recorded:
Residential real estate, construction	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate:
Retail	1,238		16		10		1,308		17		17
Gas stations	—		—		—		31		—		—
Commercial lines of credit, private banking	146		2		2		153		2		2

Subtotal	1,384		18		12		1,492		19		19

With an allowance recorded:
Residential real estate, first mortgage	122		1		1		122		1		4
Commercial real estate, offices	1,550		21		14		1,587		19		19
Commercial lines of credit, private banking	193		3		2		213		3		3

Subtotal	1,865		25		17		1,922		23		26

Total	$	3,249	$	43	$	29	$	3,414	$	42	$	45

The unpaid principal balance is not reduced for partial charge offs. The recorded investment excludes accrued interest receivable on loans which was not significant.

Also presented in the above table is the average recorded investment of the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. The average balances are calculated based on the month-end balances of the loans for the period reported.

The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2018 and December 31, 2017:

	March 31, 2018				December 31, 2017
	Nonaccrual		Loans Past Due Over 90 Days Still Accruing		Nonaccrual		Loans Past Due Over 90 Days Still Accruing
Residential real estate:
Residential first mortgage	$	4,912	$	129	$	573	$	131
Commercial real estate:
Retail	74		—		79		—

Total	$	4,986	$	129	$	652	$	131

The following tables present the aging of the recorded investment in past due loans as of March 31, 2018 and December 31, 2017 by class of loans:

March 31, 2018	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Construction	$	—	$	—	$	—	$	—	$	179,846	$	179,846
Residential real estate:
Residential first mortgage	731		48		5,041		5,820		2,109,748		2,115,568
Residential second mortgage	295		—		—		295		18,584		18,879
Commercial real estate:
Retail	—		—		74		74		10,423		10,497
Apartments	—		—		—		—		61,388		61,388
Offices	—		—		—		—		25,592		25,592
Hotel	—		—		—		—		103,653		103,653
Industrial	—		—		—		—		11,317		11,317
Gas stations	—		—		—		—		1,036		1,036
Other	—		—		—		—		25,721		25,721
Commercial lines of credit:
Private banking	—		—		—		—		26,587		26,587
C&I lending	—		—		—		—		19,579		19,579
Other consumer loans	—		—		—		—		29		29

Total	$	1,026	$	48	$	5,115	$	6,189	$	2,593,503	$	2,599,692

December 31, 2017	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Construction	$	—	$	—	$	—	$	—	$	192,319	$	192,319
Residential real estate:
Residential first mortgage	8,902		392		704		9,998		2,105,142		2,115,140
Residential second mortgage	107		—		—		107		17,394		17,501
Commercial real estate:
Retail	—		—		79		79		10,530		10,609
Apartments	—		—		—		—		59,582		59,582
Offices	—		—		—		—		26,571		26,571
Hotel	—		—		—		—		103,195		103,195
Industrial	—		—		—		—		15,907		15,907
Gas stations	—		—		—		—		1,067		1,067
Other	—		—		—		—		30,145		30,145
Commercial lines of credit:
Private banking	—		—		—		—		22,898		22,898
C&I lending	—		—		—		—		17,851		17,851
Other consumer loans	—		—		—		—		29		29

Total	$	9,009	$	392	$	783	$	10,184	$	2,602,630	$	2,612,814

The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which is presented above, and by payment activity. The Company reviews the status of nonperforming loans which include loans 90 days past due and still accruing and nonaccrual loans.

Troubled Debt Restructurings

At March 31, 2018 and December 31, 2017, the balance of outstanding loans identified as troubled debt restructurings was $3,041 and $3,073, respectively. The Company has an allowance for loan losses of $57 and $56 on these loans at March 31, 2018 and December 31, 2017, respectively. There were no loans identified as troubled debt restructurings that subsequently defaulted.

The terms of certain loans have been modified as troubled debt restructurings by the Company. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; extension of the amortization period of the loan; change in loan payments to interest only for a defined period for the loan; or a permanent reduction of the recorded investment in the loan. During the three months ended March 31, 2018 and 2017, the Company did not modify any loans as a troubled debt restructuring.

The terms of certain other loans have been modified during the three months ended March 31, 2018 and 2017 that did not meet the definition of a troubled debt restructuring. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment. These other loans that were modified were not considered significant.

Credit Quality

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans such as residential real estate and consumer loans and non-homogeneous loans, such as commercial lines of credit, construction and commercial real estate loans. This analysis is performed monthly. The Company uses the following definitions for risk ratings:

Pass: Loans are of satisfactory quality.

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable.

At March 31, 2018 and December 31, 2017, the risk rating of loans by class of loans was as follows:

March 31, 2018	Pass		Special Mention		Substandard		Doubtful		Total
Construction	$	160,343	$	16,049	$	3,454	$	—	$	179,846
Residential real estate:
Residential first mortgage	2,110,600		—		4,339		629		2,115,568
Residential second mortgage	18,879		—		—		—		18,879
Commercial real estate:
Retail	9,268		—		1,229		—		10,497
Apartments	59,798		1,590		—		—		61,388
Offices	25,592		—		—		—		25,592
Hotel	103,653		—		—		—		103,653
Industrial	11,317		—		—		—		11,317
Gas stations	1,036		—		—		—		1,036
Other	20,379		4,704		638		—		25,721
Commercial lines of credit:
Private banking	26,397		—		190		—		26,587
C&I lending	18,706		873		—		—		19,579
Other consumer loans	29		—		—		—		29

Total	$	2,565,997	$	23,216	$	9,850	$	629	$	2,599,692

December 31, 2017	Pass		Special Mention		Substandard		Doubtful		Total
Construction	$	177,241	$	11,670	$	3,408	$	—	$	192,319
Residential real estate:
Residential first mortgage	2,114,511		—		109		520		2,115,140
Residential second mortgage	17,501		—		—		—		17,501
Commercial real estate:
Retail	9,363		1,167		79		—		10,609
Apartments	58,472		1,110		—		—		59,582
Offices	26,571		—		—		—		26,571
Hotel	103,195		—		—		—		103,195
Industrial	15,907		—		—		—		15,907
Gas stations	1,067		—		—		—		1,067
Other	24,741		4,733		671		—		30,145
Commercial lines of credit:
Private banking	22,702		—		196		—		22,898
C&I lending	17,851		—		—		—		17,851
Other consumer loans	29		—		—		—		29

Total	$	2,589,151	$	18,680	$	4,463	$	520	$	2,612,814

During the three months ended March 31, 2018 and 2017, the Bank sold pools of residential real estate mortgages for $112.2 million and $105.2 million, respectively, to third-party investors. The transactions resulted in full derecognition of the mortgages (i.e. transferred assets) from the consolidated balance sheets and recognition of gain on sale of portfolio loans of $3.9 million for each of the three months ended March 31, 2018 and 2017, respectively. After the sales, the Bank’s only continuing involvement in the transferred assets is to act as servicer of the mortgages.

Mortgage Servicing Rights

3 Months Ended

Mar. 31, 2018

Mortgage Servicing Rights

Mortgage Servicing Rights

Note 5—Mortgage Servicing Rights

The Bank records servicing assets from the sale of mortgage loans to the secondary market for which servicing has been retained. Residential real estate mortgage loans serviced for others are not included in the consolidated balance sheets. The principal balance of these loans at March 31, 2018 and December 31, 2017 are as follows:

	March 31, 2018		December 31, 2017
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	72,707	$	73,039
FHLB	93,402		92,697
Private investors	518,557		442,984

Custodial escrow balances maintained with these serviced loans were $15,458 and $11,944 at March 31, 2018 and December 31, 2017, respectively.

Activity for mortgage servicing rights and the related valuation allowance are as follows:

	Three Months Ended March 31,
	2018			2017
Mortgage servicing rights:
Beginning of period	$	6,706		$	4,454
Additions	1,521			1,260
Amortization	(426		)	(260		)

End of period	7,801			5,454

Valuation allowance at beginning of period	210			40
Additions (recoveries)	(189		)	(10		)

Valuation allowance at end of period	21			30

Net carrying amount	$	7,780		$	5,424

Mortgage servicing assets were $7,780 and $6,496 at March 31, 2018 and December 31, 2017, respectively. Servicing fee income, net of amortization of servicing rights and changes in the valuation allowance, was $477 and $169 for the three months ended March 31, 2018 and 2017, respectively, and were included in other non-interest income in the condensed consolidated statements of income.

The fair value of mortgage servicing rights was $9,074 and $7,086 at Mach 31, 2018 and December 31, 2017, respectively. The fair value of mortgage servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the estimate of the fair value of mortgage servicing rights. The fair value at March 31, 2018 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds ranging from 6.8% to 31.2%, depending on the stratification of the specific right, and a weighted average default rate of 0.2%. The fair value at December 31, 2017 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds ranging from 6.8% to 36.0%, depending on the stratification of the specific right, and a weighted average default rate of 0.2%.

Deposits	3 Months Ended
Deposits	Mar. 31, 2018
Deposits
Deposits	Note 6—Deposits Time deposits, included in interest-bearing deposits, were $679,622 and $663,472 at March 31, 2018 and December 31, 2017, respectively. Time deposits includes brokered deposits of $79,510 and $156,084 at March 31, 2018 and December 31, 2017, respectively. Time deposits that meet or exceed the FDIC insurance limit of $250 were $150,523 and $129,101 at March 31, 2018 and December 31, 2017, respectively.

Federal Home Loan Bank Borrowings

3 Months Ended

Mar. 31, 2018

Federal Home Loan Bank Borrowings

Federal Home Loan Bank Borrowings

Note 7—Federal Home Loan Bank Borrowings

Federal Home Loan Bank borrowings at March 31, 2018 and December 31, 2017 consist of the following:

	March 31, 2018		Interest Rates	December 31, 2017		Interest Rates
Short-term fixed rate advances	$	125,000	1.78%	$	148,000	1.47% - 1.56%
Short-term adjustable rate advances	15,000		2.06%*	—

Total short-term FHLB advances	140,000			148,000
Long-term fixed rate advances	190,000		0.98%-1.18%	190,000		0.98% - 1.18%

Total FHLB advances	330,000			338,000
FHLB overdraft line of credit	12,937		2.06%*	—

Total	$	342,937		$	338,000

At period end.

FHLB Advances

At March 31, 2018, fixed rate advances totaled $315,000 with maturity dates ranging from April 2018 to October 2026. Also, at March 31, 2018, the Bank had a variable rate advance of $15,000 (interest rate of 2.06% at March 31, 2018) with a maturity date of September 2018.

Interest on advances is payable monthly and each advance is payable at its maturity date, and may contain a prepayment penalty if paid before maturity. At March 31, 2018, advances totaling $157,000 were callable by the FHLB as follows: $67,000 in September 2021; and $90,000 in October 2021. At March 31, 2018, the Bank had additional borrowing capacity of $374 million from the FHLB.

FHLB Overdraft Line of Credit

The Bank has established an overdraft line of credit agreement with the FHLB providing maximum borrowings of $50,000. The average amount outstanding during the three months ended March 31, 2018 and 2017 was $3,673 and $14,597, respectively. At March 31, 2018, the Bank had $12,937 outstanding under this agreement. Borrowings accrue interest based on a variable rate based on the FHLB’s overnight cost of funds rate, which was 2.06% and 1.67% at March 31, 2018 and December 31, 2017, respectively. The agreement has a one-year term and terminates in October 2018.

The FHLB advances and the overdraft line of credit are collateralized by pledged loans totaling $1,038.7 million at March 31, 2018.

Other Borrowings

The Company had available credit lines with other banks totaling $60 million. There were no amounts outstanding under these credit lines at March 31, 2018 and December 31, 2017.

Subordinated Notes, net

3 Months Ended

Mar. 31, 2018

Subordinated Notes, net

Subordinated Notes, net

Note 8—Subordinated Notes, net

The subordinated notes were as follows:

	March 31, 2018			December 31, 2017
7.0% fixed to floating rate subordinated notes	$	65,000		$	65,000
Unamortized note premium	575			588
Unamortized debt issuance costs	(652		)	(699		)

Total	$	64,923		$	64,889

In August 2017, the Company issued an additional $15 million in aggregate principal amount of subordinated notes to accredited investors. The terms of the subordinated note purchase agreements were substantially identical to the subordinated notes that were previously issued in 2016 (collectively, “Notes”), except that the first interest payment on the subordinated notes included accrued interest from April 15, 2017. The Company recorded a premium of $611 and debt issuance costs of $191 upon issuance of the notes.

During the period April through September 2016, the Company issued subordinated notes to accredited investors in the aggregate principal amount of $50 million. Issuance costs of $729 were netted against the proceeds.

The Notes bear interest at 7% per annum, payable semi-annually on April 15 and October 15 in arrears, through April 2021 after which the Notes will have a variable interest rate of the three-month LIBOR rate plus a margin of 5.82%. Premiums and debt issuance costs are amortized over the contractual term of the Notes into interest expense using the effective interest method. Interest expense on these Notes was $1,172 and $908 for the three months ended March 31, 2018 and 2017, respectively. The Notes mature in April 2026.

On or after April 14, 2021, the Company may redeem the Notes, in whole or in part, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued interest, in a principal amount with integral multiples of $1. The Notes are not redeemable by the Company prior to April 14, 2021 except in the event of (i) the Notes no longer qualify as Tier 2 Capital, (ii) the interest on the Notes is determined by law to be not deductible for Federal Income Tax reporting or (iii) the Company is considered an investment company pursuant to the Investment Company Act of 1940. The Notes are not subject to redemption by the noteholder.

The Notes are unsecured obligations and are subordinated in right of payment to all existing and future indebtedness, deposits and other liabilities of the Company’s current and future subsidiaries, including the Bank’s deposits as well as the Company’s subsidiaries liabilities to general creditors and liabilities arising during the ordinary course of business. The Notes may be included in Tier 1 capital of the Bank and Tier 2 capital for the Company under current regulatory guidelines and interpretations. As long as the Notes are outstanding, the Company is permitted to pay dividends if prior to such dividends, the Bank is considered well capitalized, as defined below.

Stock-based Compensation

3 Months Ended

Mar. 31, 2018

Stock-based Compensation

Stock-based Compensation

Note 9—Stock-based Compensation

The Board of Directors established a 2017 Omnibus Equity Incentive Plan (“The Plan”) which was approved by the shareholders in October 2017. The Plan provides for the grant of up to 4,237,100 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards for issuance to employees, consultants and Board of Directors of the Company. The stock-based awards are issued at no less than the market price on the date the awards are granted.

Stock Options

Stock option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant. The stock option awards generally vest in installments of 50% in each of the third and fourth year after the date of grant and have a maximum term of ten years.

The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted below. Estimating the grant date fair values for employee stock options requires management to make assumptions regarding expected volatility of the value of those underlying shares, the risk-free rate over the expected life of the stock options and the date on which share-based payments will be settled. Expected volatilities are based on a weighted average of the Company’s historic volatility and an implied volatility for a group of industry-relevant bank holding companies as of the measurement date. The expected term of options granted is calculated using the simplified method (the midpoint between the end of the vesting period and the end of the maximum term). The risk-free rate for the expected term of the option is based upon U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield represents what the Company anticipates will be declared during the expected term of the options.

On March 21, 2018, the Board of Directors approved the issuance of options to purchase 92,625 shares of common stock with an exercise price of $13.73 to certain key employees which are accounted for as equity awards. These options to purchase shares of common stock had a weighted average grant-date fair value of $4.56 per option. The grant-date fair value of each stock option award for the three months ended March 31, 2018 is estimated using the Black-Scholes option pricing model that uses the assumptions set forth in the following table:

Exercise price of options	$	13.73
Risk-free interest rate	2.80		%
Expected term (in years)	6.75
Expected stock price volatility	23.7		%
Dividend yield	.29		%

A summary of the Company’s stock option activity as of and for the three months ended March 31, 2018 is as follows:

	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
				(Years)
Outstanding at January 1, 2018	—	$	—	—	$	—
Granted	92,625	13.73
Exercised	—	—
Forfeited/expired	—	—

Outstanding at March 31, 2018	92,625	$	13.73	9.97	$	—

The Company recorded share-based compensation expense associated with stock options of $3 for the three months ended March 31, 2018. At March 31, 2018, there was $419 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3.75 years. No options are exercisable at March 31, 2018.

Restricted Stock Awards

The value of a restricted stock award is based on the market value of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested.

On March 21, 2018, the Board of Directors approved the issuance of 39,655 restricted stock awards to certain key employees and non-employee directors. The restricted stock awards of 33,100 issued to key employees vest in installments of 50% in each of the third and fourth year after the date of grant. The 6,555 restricted stock awards issued to non-employee directors vest on the first anniversary of the grant date. The restricted stock awards were issued with a weighted average grant-date fair value of $13.60. Upon a change in control, as defined in the Plan, the outstanding restricted stock awards will immediately vest.

The fair value of the award is recorded as compensation expense on a straight-line basis over the vesting period. The Company recorded share-based compensation expense associated with restricted stock awards of $6 for the three months ended March 31, 2018. At March 31, 2018, there was $534 of total unrecognized compensation cost related to the nonvested stock granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3.48 years.

Income Per Share	3 Months Ended
Income Per Share	Mar. 31, 2018
Income Per Share
Income Per Share	Note 10— Income Per Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per common share further includes any common shares available to be issued upon the exercise of outstanding stock options and restricted stock awards if such inclusions would be dilutive. The Company determines the potentially dilutive common shares using the treasury stock method. For the three months ended March 31, 2018 basic income per share and diluted income per share were the same since the effect of the potential dilutive securities were considered antidilutive. Potentially dilutive securities, consisting of 39,655 nonvested restricted shares of common stock and 92,625 options to purchase shares of common stock, were excluded from the diluted per share calculation. There were no dilutive securities outstanding for the three months ended March 31, 2017. In September 2017, the Board of Directors approved a 1,000 for one stock split to be effected as a stock dividend on the Company’s common stock. The stock split was effected on September 11, 2017. All share and per share amounts have been retroactively adjusted to reflect the stock split for the three months ended March 31, 2017.

Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2018

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Note 11—Fair Values of Financial Instruments

The Company’s financial instruments include assets carried at fair value, as well as assets carried at cost or amortized cost but disclosed at fair value in these consolidated financial statements. Fair value is defined as the exit price, the price that would be received for an asset or paid to transfer a liability in the principal most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of investment securities available for sale:

Investment Securities

The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar investment securities (Level 2). For investment securities where quoted prices or market prices of similar investment securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using spread to LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual investment securities are reviewed and incorporated into the calculations.

Assets Measured at Fair Value on a Recurring Basis

The table below presents the assets measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset at March 31, 2018 and December 31, 2017:

			Fair Value Measurements at March 31, 2018
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury securities	$	118,540	$	118,540	$	—	$	—
Collateralized mortgage obligations	1,955		—		1,955		—
Collateralized debt obligations	298		—		—		298
Equity securities	3,917		3,917		—		—

			Fair Value Measurements at December 31, 2017
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury securities	$	120,042	$	120,042	$	—	$	—
Collateralized mortgage obligations	2,008		—		2,008		—
Collateralized debt obligations	571		—		—		571
Equity securities	4,227		3,981		—		246		*

The Company has elected to account for its investment in a thinly traded, restricted stock with a carrying value of $246 using the measurement alternative for equity securities without a readily determinable fair value therefore, the investment is excluded from the fair value measurement disclosures at March 31, 2018.

There were no transfers between Level 1 and Level 2 during 2018 and 2017.

The table below presents a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at March 31, 2018 and December 31, 2017:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Investment Securities
	March 31, 2018					December 31, 2017
	Collateralized Debt Obligations			Equity Securities		Collateralized Debt Obligations			Equity Securities
Balance of recurring Level 3 assets at beginning of period	$	571		$	—	$	585		$	529
Total gains or losses (realized/unrealized):
Included in income-realized	—			—		—			—
Included in other comprehensive income (loss)	22			—		(10		)	—
Principal maturities/settlements	(295		)	—		(4		)	(283		)
Sales	—			—		—			—
Transfers in and/or out of Level 3	—			—		—			—

Balance at end of period	$	298		$	—	$	571		$	246

Unrealized losses on Level 3 investments for collateralized debt obligations at March 31, 2018 was $13. In addition to the amounts included in income for the three months ended March 31, 2018 as presented in the table above, the Company also recorded interest income on collateralized debt obligations of $5. Unrealized losses on Level 3 investments for collateralized debt obligations and equity securities at December 31, 2017 were $35 and $0, respectively. In addition to the amounts included in income for the year ended December 31, 2017 as presented in the table above, the Company also recorded interest income on collateralized debt obligations of $21 and dividend income on equity securities of $15.

The fair value of collateralized debt obligations is determined by calculating discounted cash flows using LIBOR curves plus spreads that adjust for loss severities, volatility, credit risk and optionality. When available, broker quotes are used to validate the internal model. Rating agency and industry research reports as well as assumptions about specific-issuer defaults and deferrals are reviewed and incorporated into the calculations. Assumptions are reviewed on a quarterly basis as specific-issuer deferral and defaults that occurred are compared to those that were projected and ongoing assumptions are adjusted in accordance with the level of unexpected deferrals and defaults that occurred.

The following table presents quantitative information about recurring Level 3 fair value measurements at March 31, 2018 and December 31, 2017:

	Fair Value		Valuation Technique	Unobservable Inputs
March 31, 2018
Collateralized debt obligations	$	298	Discounted cash flow	Collateral default rate	0%
				Recovery probability	15%
December 31, 2017
Collateralized debt obligations	$	571	Discounted cash flow	Collateral default rate	0%
				Recovery probability	15%

The significant unobservable inputs used on the fair value measurement of the Company’s collateralized debt obligations are probabilities of specific-issuer defaults and specific-issuer recovery assumptions. Significant increases in specific-issuer default assumptions or decreases in specific-issuer recovery assumptions would result in a significantly lower fair value measurement. Conversely, decreases in specific-issuer default assumptions or increases in specific-issuer recovery assumptions would result in a significantly higher fair value measurement.

Assets Measured at Fair Value on a Non-Recurring Basis

From time to time, the Bank may be required to measure certain other assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. There were no assets held at fair value on a non-recurring basis at March 31, 2018 and December 31, 2017.

Fair Value of Financial Instruments

With the adoption of ASU No. 2016-01, the Company is required to calculate fair value of its financial instruments for disclosure purposes based on an exit price notion. The Company is not required to revise its prior-period disclosures of fair value for those financial instruments that may have been calculated using the entry price notion, which was acceptable prior to January 1, 2018. Therefore, the prior-period fair values disclosed may not be determined in a manner consistent with the current-period fair values disclosed because of a change in methodology.

The carrying amounts and estimated fair values of financial instruments not carried at fair value at March 31, 2018 and December 31, 2017, are as follows:

	Fair Value Measurements at March 31, 2018
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	37,541	$	37,541	$	37,541	$	—	$	—
Mortgage loans held for sale	200,467		204,205		—		204,205		—
Loans, net	2,580,560		2,628,979		—		—		2,628,979

Financial Liabilities
Time deposits	679,622		675,620		—		675,620		—
Federal Home Loan Bank borrowings	342,937		332,507		—		332,507		—
Subordinated notes, net	64,923		66,950		—		66,950		—

	Fair Value Measurements at December 31, 2017
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	40,147	$	40,147	$	40,147	$	—	$	—
Mortgage loans held for sale	112,866		115,619		—		115,619		—
Loans, net	2,594,357		2,635,986		—		—		2,635,986

Financial Liabilities
Time deposits	663,472		660,380		—		660,380		—
Federal Home Loan Bank borrowings	338,000		330,004		—		330,004		—
Subordinated notes, net	64,889		67,485		—		67,485		—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes

3 Months Ended

Mar. 31, 2018

Income Taxes

Income Taxes

Note 12—Income Taxes

The Tax Cut and Jobs Act (the “Tax Act”) enacted in December 2017 reduced the federal corporate income tax rate from 35% to 21%, effective January 1, 2018. Due to the change in tax rate, the Company was required to remeasure its deferred tax assets and liabilities, including the deferred tax balance attributable to items of pretax comprehensive income (loss), based on the rates at which they are expected to reverse in the future. The effect of the Tax Act of $3.3 million was recorded in deferred income tax expense in the fourth quarter and year ended December 31, 2017 which related entirely to the remeasurement of the net deferred tax asset.

The Company has implemented the new corporate tax rate in the three months ended March 31, 2018. The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:

	Three Months Ended March 31,
	2018		2017
U.S. federal statutory rate	21.0	%	35.0	%
Effect of:
State taxes, net of federal benefit	7.9	%	6.0	%
Loss incurred by pass-through entity	—	%	0.7	%
Income on cash surrender value of bank-owned life insurance	(0.2	)%	(0.3	)%

Effective tax rate	28.7	%	41.4	%

Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2018

Regulatory Capital Requirements

Regulatory Capital Requirements

Note 13—Regulatory Capital Requirements

The Bank is subject to the capital adequacy requirements of the OCC. The Company, as a thrift holding company, is subject to the capital adequacy requirements of the Federal Reserve. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors, and the regulators can lower classifications in certain cases. Prompt corrective action provisions are not applicable to thrift holding companies. Failure to meet minimum capital requirements can initiate regulatory action that could have a direct material effect on the consolidated financial statements.

The final rules implementing Basel III became effective on January 1, 2015 with full compliance with all requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Company must hold a capital conservation buffer over the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer is 1.875% for 2018. The net unrealized gain or loss on investment securities is not included in regulatory capital. Management believes that as of March 31, 2018, the Company and the Bank meet all regulatory capital requirements to which they are subject.

Prompt corrective action regulations provide five classifications, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. The minimum requirements, excluding significantly undercapitalized and critically undercapitalized categories, are as follows:

	Capital Weighted Assets				Tier 1 Capital to Average		Common Tier 1
	Total		Tier 1		Assets		(CET1)
Well Capitalized	10.0	%	8.0	%	5.0	%	6.5	%
Adequately Capitalized	8.0	%	6.0	%	4.0	%	4.5	%
Undercapitalized	6.0	%	4.0	%	3.0	%	3.0	%

At March 31, 2018, the most recent regulatory notifications categorized the Bank as well capitalized. There have been no conditions or events since these notifications that management believes would have changed the Bank’s category.

At March 31, 2018 and December 31, 2017, the Bank exceeded all capital requirements to be categorized as well-capitalized and the Company exceeded the Capital Adequacy requirements as presented below. The Company and the Bank’s actual and minimum required capital amounts and ratios, not including the capital conservation buffer, at March 31, 2018 and December 31, 2017 are as follows:

	Actual				For Capital Adequacy Purposes				To be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
March 31, 2018
Total adjusted capital to risk weighted assets
Consolidated	$	371,915	20.38	%	$	146,022	8.00	%	N/A		N/A
Bank	275,118		15.07		146,019		8.00		$	182,524	10.00	%
Tier 1 (core) capital to risk weighted assets
Consolidated	287,860		15.77		109,517		6.00		N/A		N/A
Bank	255,986		14.02		109,515		6.00		146,019		8.00
Common Tier 1 (CET1)
Consolidated	287,860		15.77		82,138		4.50		N/A		N/A
Bank	255,986		14.02		82,136		4.50		118,641		6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated	287,860		9.73		118,383		4.00		N/A		N/A
Bank	255,986		8.65		118,383		4.00		147,978		5.00

	Actual				For Capital Adequacy Purposes				To be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2017
Total adjusted capital to risk weighted assets
Consolidated	$	365,078	20.28	%	$	140,447	8.00	%	N/A		N/A
Bank	259,165		14.76		140,447		8.00		$	175,559	10.00	%
Tier 1 (core) capital to risk weighted assets
Consolidated	272,732		15.53		105,336		6.00		N/A		N/A
Bank	240,708		13.71		105,336		6.00		140,447		8.00
Common Tier 1 (CET1)
Consolidated	272,732		15.53		79,002		4.50		N/A		N/A
Bank	240,708		13.71		79,002		4.50		114,114		6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated	272,732		9.83		110,949		4.00		N/A		N/A
Bank	240,708		8.68		110,949		4.00		138,687		5.00

Dividend Restrictions

As noted above, banking regulations require the Bank to maintain certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to its shareholders. The Company’s principal source of funds for dividend payments is dividends received from the Bank and banking regulations limit the dividends that may be paid. Also, pursuant to the terms of the subordinated note agreements, the Company may pay dividends if it is “well capitalized” as defined by regulatory guidelines. At March 31, 2018, $139.9 million of consolidated retained earnings were available to pay dividends to the Company’s shareholders.

The Qualified Thrift Lender (“QTL”) test requires that a minimum of 65% of assets be maintained in housing-related finance and other specified areas. If the QTL test is not met, limits are placed on growth, branching, new investments, FHLB Advances and dividends, or the Bank must convert to a commercial bank charter. Management believes that the QTL test has been met.

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 942
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-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Topic 942
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-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826

+ Details

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2018
Related Party Transactions
Related Party Transactions	Note 14—Related Party Transactions As disclosed in Note 1, the Company purchased an entity owned 80% by its principal shareholder and 20% by a member of the Board of Directors of the Company and Bank. At the time of the purchase in April 2017, the Director was and will continue as the Chief Executive Officer (“CEO”) of the purchased entity. For the three months ended March 31, 2017, the consolidated statements of income include compensation-related expenses of $125 for the Director’s services as CEO of this purchased entity. From time to time, the Company makes charitable contributions to a foundation which certain members of the Board of Directors of the Company and Bank, and whom are also related to the Company’s principal shareholder, serve as trustees of the foundation. The Company paid $225 to the foundation during each of the three months ended March 31, 2018 and 2017. The Bank leases certain storage and office space from entities owned by the Company’s principal shareholders. Amounts paid under such leases totaled $17 and $9 during the three months ended March 31, 2018 and 2017, respectively. The Bank provides monthly data processing and programming services to entities controlled by the Company’s principal shareholders. Aggregate fees paid amounted to $25 and $27 during the three months ended March 31, 2018 and 2017, respectively.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies

Commitments and Contingencies

Note 15—Commitments and Contingencies

Legal Proceedings

The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on its financial position, results of operations or liquidity.

Lease Commitments

The Company leases its corporate headquarters and branch offices through noncancelable operating leases with terms that range from years 2009 to 2029, with renewal options thereafter. Rent expense was $921 and $825 for the three months ended March 31, 2018 and 2017, respectively.

Financial Instruments with Off-Balance Sheet Risk

The Bank is a party to financial instruments with off-balance risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit which are not reflected in the consolidated financial statements.

Unfunded Commitments to Extend Credit

A commitment to extend credit, such as a loan commitment, credit line and overdraft protection, is a legally binding agreement to lend funds to a customer, usually at a stated interest rate and for a specific purpose. Such commitments have fixed expiration dates and generally require a fee. The extension of a commitment gives rise to credit risk. The actual liquidity requirements or credit risk that the Bank will experience is expected to be lower than the contractual amount of commitments to extend credit because a significant portion of those commitments are expected to expire without being drawn upon. Certain commitments are subject to loan agreements containing covenants regarding the financial performance of the customer that must be met before the Bank is required to fund the commitment. The Bank uses the same credit policies in making commitments to extend credit as it does in making loans.

The commitments outstanding to make loans include primarily residential real estate loans that are made for a period of 90 days or less. At March 31, 2018, outstanding commitments to make loans consisted of fixed rate loans of $6,072 with interest rates ranging from 3.75% to 7.00% and maturities ranging from ten years to thirty years and variable rate loans of $258,464 with varying interest rates (ranging from 3.75% to 7.125% at March 31, 2018) and maturities of 25 and 30 years.

Standby Letters of Credit

Standby letters of credit are issued on behalf of customers in connection with construction contracts between the customers and third parties. Under standby letters of credit, the Bank assures that the third parties will receive specified funds if customers fail to meet their contractual obligations. The credit risk to the Bank arises from its obligation to make payment in the event of a customer’s contractual default. The maximum amount of potential future payments guaranteed by the Bank is limited to the contractual amount of these letters. Collateral made be obtained at exercise of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

The following is a summary of the total amount of unfunded commitments to extend credit and standby letters of credit outstanding at March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
Commitments to make loans	$	264,536	$	268,401
Unused lines of credit	160,177		157,234
Standby letters of credit	70		70

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2018
Subsequent Events
Subsequent Events	Note 16—Subsequent Events In March 2018, the Company committed to sell a portfolio of residential real estate loans to third-party investors. In April 2018, the Company received net proceeds of $88.0 million and recorded a gain of $3.2 million on the sale of residential real estate loans. Servicing of the loan portfolio sold was retained by the Company.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Principles of Consolidation

Use of Estimates

Fair Value Measurements

Concentration of Credit Risk

Investment Securities

Investment securities includes available for sale debt securities and equity securities.

Debt Securities

Debt securities are classified as either available for sale or held to maturity. Management determines the classification of the investment securities when they are purchased.

Equity Securities

Federal Home Loan Bank Stock

Revenue from Contracts with Customers

The following table presents the Company’s sources of non-interest income for the three months ended March 31, 2018 and 2017 that are within the scope of ASC 606:

	Three Months Ended March 31,
	2018		2017
Non-Interest Income:
Service charges on deposit accounts*	$	52	$	40
Investment management and advisory fees	623		552
Interchange fees*	25		26
Other service charges and fees*	7		3
Not within the scope of ASC 606	5,330		4,965

Total non-interest income	$	6,037	$	5,586

Included in service charges and fees in the condensed consolidated statements of income

Contract Balances

Stock-based compensation

Income per Share, Basic and Diluted

Recently Issued Accounting Guidance

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Schedule of non-interest income within the scope of ASC 606

	Three Months Ended March 31,
	2018		2017
Non-Interest Income:
Service charges on deposit accounts*	$	52	$	40
Investment management and advisory fees	623		552
Interchange fees*	25		26
Other service charges and fees*	7		3
Not within the scope of ASC 606	5,330		4,965

Total non-interest income	$	6,037	$	5,586

Included in service charges and fees in the condensed consolidated statements of income

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2018

Investment Securities

Schedule of amortized cost and fair value of debt securities available for sale

	March 31, 2018
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Available for sale:
U.S. Treasury securities	$	118,764	$	—	$	(224	)	$	118,540
Collateralized mortgage obligations	1,888		67		—			1,955
Collateralized debt obligations	311		—		(13		)	298

Total	$	120,963	$	67	$	(237	)	$	120,793

	December 31, 2017
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Available for sale:
U.S. Treasury securities	$	120,216	$	—	$	(174	)	$	120,042
Collateralized mortgage obligations	1,953		55		—			2,008
Collateralized debt obligations	606		—		(35		)	571

Total	$	122,775	$	55	$	(209	)	$	122,621

Schedule of amortized cost and fair value of the debt securities available for sale, shown by contractual maturity

The amortized cost and fair value of debt securities available for sale issued by U.S. Treasury at March 31, 2018 are shown by contractual maturity.

	Amortized Cost		Fair Value
U.S. Treasury securities
Due less than one year	$	118,764	$	118,540
Collateralized mortgage obligations	1,888		1,955
Collateralized debt obligations	311		298

Total	$	120,963	$	120,793

Schedule of debt securities available for sale, at fair value, continuous unrealized loss position

	March 31, 2018
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities	$	118,540	$	(224	)	$	—	$	—		$	118,540	$	(224	)
Collateralized debt obligations	—		—			298		(13		)	298		(13		)

Total	$	118,540	$	(224	)	$	298	$	(13	)	$	118,838	$	(237	)

	December 31, 2017
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities	$	120,042	$	(174	)	$	—	$	—		$	120,042	$	(174	)
Collateralized debt obligations	—		—			571		(35		)	571		(35		)

Total	$	120,042	$	(174	)	$	571	$	(35	)	$	120,613	$	(209	)

Schedule of equity securities with readily determinable fair values

	Three months ended March 31, 2018
Net losses recorded during the period on equity securities	$	(64	)
Less: Net losses recorded during the period on equity securities sold during the period	—

Unrealized losses recorded during the period on equity securities held at the reporting date	$	(64	)

Loans (Tables)

3 Months Ended

Mar. 31, 2018

Loans

Schedule of major categories of loans

	March 31,			December 31,
	2018			2017
Construction loans	$	179,846		$	192,319
Residential real estate loans, mortgage	2,134,447			2,132,641
Commercial real estate loans, mortgage	239,204			247,076
Commercial and industrial loans, lines of credit	46,166			40,749
Other consumer loans	29			29

Total loans	2,599,692			2,612,814
Less: allowance for loan losses	(19,132		)	(18,457		)

Loans, net	$	2,580,560		$	2,594,357

Summary of activity in allowance for loan losses and recorded investment by portfolio segment

March 31, 2018	Construction		Residential Real Estate			Commercial Real Estate		Commercial Lines of Credit		Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	2,218	$	12,279		$	2,040	$	469	$	1	$	1,450	$	18,457
Provision for loan losses	760		(782		)	501		147		—		15		641
Charge offs	—		—			—		—		—		—		—
Recoveries	1		2			31		—		—		—		34

Total ending balance	$	2,979	$	11,499		$	2,572	$	616	$	1	$	1,465	$	19,132

March 31, 2017	Construction		Residential Real Estate		Commercial Real Estate		Commercial Lines of Credit		Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	679	$	11,863	$	915	$	373	$	2	$	990	$	14,822
Provision for loan losses	185		—		147		3		—		265		600
Charge offs	—		—		—		—		—		—		—
Recoveries	95		10		40		—		—		—		145

Total ending balance	$	959	$	11,873	$	1,102	$	376	$	2	$	1,255	$	15,567

March 31, 2018	Construction		Residential Real Estate		Commercial Real Estate		Commercial Lines of Credit		Other Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	46	$	11	$	95	$	—	$	—	$	152
Collectively evaluated for impairment	2,979		11,453		2,561		521		1		1,465		18,980

Total ending allowance balance	$	2,979	$	11,499	$	2,572	$	616	$	1	$	1,465	$	19,132

Loans:
Loans individually evaluated for impairment	$	—	$	122	$	2,774	$	335	$	—	$	—	$	3,231
Loans collectively evaluated for impairment	179,846		2,134,325		236,430		45,831		29		—		2,596,461

Total ending loans balance	$	179,846	$	2,134,447	$	239,204	$	46,166	$	29	$	—	$	2,599,692

December 31, 2017	Construction		Residential Real Estate		Commercial Real Estate		Commercial Lines of Credit		Other Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	37	$	19	$	98	$	—	$	—	$	154
Collectively evaluated for impairment	2,218		12,242		2,021		371		1		1,450		18,303

Total ending allowance balance	$	2,218	$	12,279	$	2,040	$	469	$	1	$	1,450	$	18,457

Loans:
Loans individually evaluated for impairment	$	—	$	122	$	2,804	$	343	$	—	$	—	$	3,269
Loans collectively evaluated for impairment	192,319		2,132,519		244,272		40,406		29		—		2,609,545

Total ending loans balance	$	192,319	$	2,132,641	$	247,076	$	40,749	$	29	$	—	$	2,612,814

Summary of information related to impaired loans by class of loans

	At March 31, 2018						At December 31, 2017
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses
With no related allowance for loan losses recorded:
Commercial real estate, retail	$	1,415	$	1,228	$	—	$	1,431	$	1,247	$	—
Commercial lines of credit, private banking	145		145		—		147		147		—

Subtotal	1,560		1,373		—		1,578		1,394		—

With an allowance for loan losses recorded:
Residential real estate, first mortgage	122		122		46		122		122		37
Commercial real estate, offices	1,558		1,546		11		1,567		1,557		19
Commercial lines of credit, private banking	190		190		95		196		196		98

Subtotal	1,870		1,858		152		1,885		1,875		154

Total	$	3,430	$	3,231	$	152	$	3,463	$	3,269	$	154

	Three Months Ended March 31,
	2018						2017
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With no related allowance recorded:
Residential real estate, construction	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate:
Retail	1,238		16		10		1,308		17		17
Gas stations	—		—		—		31		—		—
Commercial lines of credit, private banking	146		2		2		153		2		2

Subtotal	1,384		18		12		1,492		19		19

With an allowance recorded:
Residential real estate, first mortgage	122		1		1		122		1		4
Commercial real estate, offices	1,550		21		14		1,587		19		19
Commercial lines of credit, private banking	193		3		2		213		3		3

Subtotal	1,865		25		17		1,922		23		26

Total	$	3,249	$	43	$	29	$	3,414	$	42	$	45

Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans and aging of the recorded investment in past due loans

	March 31, 2018				December 31, 2017
	Nonaccrual		Loans Past Due Over 90 Days Still Accruing		Nonaccrual		Loans Past Due Over 90 Days Still Accruing
Residential real estate:
Residential first mortgage	$	4,912	$	129	$	573	$	131
Commercial real estate:
Retail	74		—		79		—

Total	$	4,986	$	129	$	652	$	131

March 31, 2018	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Construction	$	—	$	—	$	—	$	—	$	179,846	$	179,846
Residential real estate:
Residential first mortgage	731		48		5,041		5,820		2,109,748		2,115,568
Residential second mortgage	295		—		—		295		18,584		18,879
Commercial real estate:
Retail	—		—		74		74		10,423		10,497
Apartments	—		—		—		—		61,388		61,388
Offices	—		—		—		—		25,592		25,592
Hotel	—		—		—		—		103,653		103,653
Industrial	—		—		—		—		11,317		11,317
Gas stations	—		—		—		—		1,036		1,036
Other	—		—		—		—		25,721		25,721
Commercial lines of credit:
Private banking	—		—		—		—		26,587		26,587
C&I lending	—		—		—		—		19,579		19,579
Other consumer loans	—		—		—		—		29		29

Total	$	1,026	$	48	$	5,115	$	6,189	$	2,593,503	$	2,599,692

December 31, 2017	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Construction	$	—	$	—	$	—	$	—	$	192,319	$	192,319
Residential real estate:
Residential first mortgage	8,902		392		704		9,998		2,105,142		2,115,140
Residential second mortgage	107		—		—		107		17,394		17,501
Commercial real estate:
Retail	—		—		79		79		10,530		10,609
Apartments	—		—		—		—		59,582		59,582
Offices	—		—		—		—		26,571		26,571
Hotel	—		—		—		—		103,195		103,195
Industrial	—		—		—		—		15,907		15,907
Gas stations	—		—		—		—		1,067		1,067
Other	—		—		—		—		30,145		30,145
Commercial lines of credit:
Private banking	—		—		—		—		22,898		22,898
C&I lending	—		—		—		—		17,851		17,851
Other consumer loans	—		—		—		—		29		29

Total	$	9,009	$	392	$	783	$	10,184	$	2,602,630	$	2,612,814

Schedule of risk rating of loans by class of loans

March 31, 2018	Pass		Special Mention		Substandard		Doubtful		Total
Construction	$	160,343	$	16,049	$	3,454	$	—	$	179,846
Residential real estate:
Residential first mortgage	2,110,600		—		4,339		629		2,115,568
Residential second mortgage	18,879		—		—		—		18,879
Commercial real estate:
Retail	9,268		—		1,229		—		10,497
Apartments	59,798		1,590		—		—		61,388
Offices	25,592		—		—		—		25,592
Hotel	103,653		—		—		—		103,653
Industrial	11,317		—		—		—		11,317
Gas stations	1,036		—		—		—		1,036
Other	20,379		4,704		638		—		25,721
Commercial lines of credit:
Private banking	26,397		—		190		—		26,587
C&I lending	18,706		873		—		—		19,579
Other consumer loans	29		—		—		—		29

Total	$	2,565,997	$	23,216	$	9,850	$	629	$	2,599,692

December 31, 2017	Pass		Special Mention		Substandard		Doubtful		Total
Construction	$	177,241	$	11,670	$	3,408	$	—	$	192,319
Residential real estate:
Residential first mortgage	2,114,511		—		109		520		2,115,140
Residential second mortgage	17,501		—		—		—		17,501
Commercial real estate:
Retail	9,363		1,167		79		—		10,609
Apartments	58,472		1,110		—		—		59,582
Offices	26,571		—		—		—		26,571
Hotel	103,195		—		—		—		103,195
Industrial	15,907		—		—		—		15,907
Gas stations	1,067		—		—		—		1,067
Other	24,741		4,733		671		—		30,145
Commercial lines of credit:
Private banking	22,702		—		196		—		22,898
C&I lending	17,851		—		—		—		17,851
Other consumer loans	29		—		—		—		29

Total	$	2,589,151	$	18,680	$	4,463	$	520	$	2,612,814

Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2018

Mortgage Servicing Rights

Schedule of principal balance of mortgage loans serviced for others

	March 31, 2018		December 31, 2017
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	72,707	$	73,039
FHLB	93,402		92,697
Private investors	518,557		442,984

Schedule of activity for mortgage servicing rights and related valuation allowance

	Three Months Ended March 31,
	2018			2017
Mortgage servicing rights:
Beginning of period	$	6,706		$	4,454
Additions	1,521			1,260
Amortization	(426		)	(260		)

End of period	7,801			5,454

Valuation allowance at beginning of period	210			40
Additions (recoveries)	(189		)	(10		)

Valuation allowance at end of period	21			30

Net carrying amount	$	7,780		$	5,424

Federal Home Loan Bank Borrowings (Tables)

3 Months Ended

Mar. 31, 2018

Federal Home Loan Bank Borrowings

Schedule of Federal Home Loan Bank (FHLB) borrowings

	March 31, 2018		Interest Rates	December 31, 2017		Interest Rates
Short-term fixed rate advances	$	125,000	1.78%	$	148,000	1.47% - 1.56%
Short-term adjustable rate advances	15,000		2.06%*	—

Total short-term FHLB advances	140,000			148,000
Long-term fixed rate advances	190,000		0.98%-1.18%	190,000		0.98% - 1.18%

Total FHLB advances	330,000			338,000
FHLB overdraft line of credit	12,937		2.06%*	—

Total	$	342,937		$	338,000

At period end.

Subordinated Notes, net (Tables)

3 Months Ended

Mar. 31, 2018

Subordinated Notes, net

Schedule of subordinated notes, net

	March 31, 2018			December 31, 2017
7.0% fixed to floating rate subordinated notes	$	65,000		$	65,000
Unamortized note premium	575			588
Unamortized debt issuance costs	(652		)	(699		)

Total	$	64,923		$	64,889

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Stock-based Compensation

Schedule of assumptions used to estimate grant date fair value of stock option awards using Black Scholes option pricing model

The grant-date fair value of each stock option award for the three months ended March 31, 2018 is estimated using the Black-Scholes option pricing model that uses the assumptions set forth in the following table:

Exercise price of options	$	13.73
Risk-free interest rate	2.80		%
Expected term (in years)	6.75
Expected stock price volatility	23.7		%
Dividend yield	.29		%

Summary of the company's stock option activity

	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
				(Years)
Outstanding at January 1, 2018	—	$	—	—	$	—
Granted	92,625	13.73
Exercised	—	—
Forfeited/expired	—	—

Outstanding at March 31, 2018	92,625	$	13.73	9.97	$	—

Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Fair Values of Financial Instruments

Schedule of assets measured at fair value on a recurring basis categorized by level of inputs

			Fair Value Measurements at March 31, 2018
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury securities	$	118,540	$	118,540	$	—	$	—
Collateralized mortgage obligations	1,955		—		1,955		—
Collateralized debt obligations	298		—		—		298
Equity securities	3,917		3,917		—		—

			Fair Value Measurements at December 31, 2017
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury securities	$	120,042	$	120,042	$	—	$	—
Collateralized mortgage obligations	2,008		—		2,008		—
Collateralized debt obligations	571		—		—		571
Equity securities	4,227		3,981		—		246		*

Summary of reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Investment Securities
	March 31, 2018					December 31, 2017
	Collateralized Debt Obligations			Equity Securities		Collateralized Debt Obligations			Equity Securities
Balance of recurring Level 3 assets at beginning of period	$	571		$	—	$	585		$	529
Total gains or losses (realized/unrealized):
Included in income-realized	—			—		—			—
Included in other comprehensive income (loss)	22			—		(10		)	—
Principal maturities/settlements	(295		)	—		(4		)	(283		)
Sales	—			—		—			—
Transfers in and/or out of Level 3	—			—		—			—

Balance at end of period	$	298		$	—	$	571		$	246

Schedule of quantitative information about recurring Level 3 fair value measurements

	Fair Value		Valuation Technique	Unobservable Inputs
March 31, 2018
Collateralized debt obligations	$	298	Discounted cash flow	Collateral default rate	0%
				Recovery probability	15%
December 31, 2017
Collateralized debt obligations	$	571	Discounted cash flow	Collateral default rate	0%
				Recovery probability	15%

Schedule of carrying amounts and estimated fair values of financial instruments not carried at fair value

	Fair Value Measurements at March 31, 2018
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	37,541	$	37,541	$	37,541	$	—	$	—
Mortgage loans held for sale	200,467		204,205		—		204,205		—
Loans, net	2,580,560		2,628,979		—		—		2,628,979

Financial Liabilities
Time deposits	679,622		675,620		—		675,620		—
Federal Home Loan Bank borrowings	342,937		332,507		—		332,507		—
Subordinated notes, net	64,923		66,950		—		66,950		—

	Fair Value Measurements at December 31, 2017
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	40,147	$	40,147	$	40,147	$	—	$	—
Mortgage loans held for sale	112,866		115,619		—		115,619		—
Loans, net	2,594,357		2,635,986		—		—		2,635,986

Financial Liabilities
Time deposits	663,472		660,380		—		660,380		—
Federal Home Loan Bank borrowings	338,000		330,004		—		330,004		—
Subordinated notes, net	64,889		67,485		—		67,485		—

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

Income Taxes

Schedule of reconciliation of the U.S. federal statutory tax rate to effective tax rate

	Three Months Ended March 31,
	2018		2017
U.S. federal statutory rate	21.0	%	35.0	%
Effect of:
State taxes, net of federal benefit	7.9	%	6.0	%
Loss incurred by pass-through entity	—	%	0.7	%
Income on cash surrender value of bank-owned life insurance	(0.2	)%	(0.3	)%

Effective tax rate	28.7	%	41.4	%

Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2018

Regulatory Capital Requirements

Schedule of minimum requirements under prompt corrective action regulations classifications

	Capital Weighted Assets				Tier 1 Capital to Average		Common Tier 1
	Total		Tier 1		Assets		(CET1)
Well Capitalized	10.0	%	8.0	%	5.0	%	6.5	%
Adequately Capitalized	8.0	%	6.0	%	4.0	%	4.5	%
Undercapitalized	6.0	%	4.0	%	3.0	%	3.0	%

Schedule of actual and minimum required capital amounts and ratios

	Actual				For Capital Adequacy Purposes				To be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
March 31, 2018
Total adjusted capital to risk weighted assets
Consolidated	$	371,915	20.38	%	$	146,022	8.00	%	N/A		N/A
Bank	275,118		15.07		146,019		8.00		$	182,524	10.00	%
Tier 1 (core) capital to risk weighted assets
Consolidated	287,860		15.77		109,517		6.00		N/A		N/A
Bank	255,986		14.02		109,515		6.00		146,019		8.00
Common Tier 1 (CET1)
Consolidated	287,860		15.77		82,138		4.50		N/A		N/A
Bank	255,986		14.02		82,136		4.50		118,641		6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated	287,860		9.73		118,383		4.00		N/A		N/A
Bank	255,986		8.65		118,383		4.00		147,978		5.00

	Actual				For Capital Adequacy Purposes				To be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2017
Total adjusted capital to risk weighted assets
Consolidated	$	365,078	20.28	%	$	140,447	8.00	%	N/A		N/A
Bank	259,165		14.76		140,447		8.00		$	175,559	10.00	%
Tier 1 (core) capital to risk weighted assets
Consolidated	272,732		15.53		105,336		6.00		N/A		N/A
Bank	240,708		13.71		105,336		6.00		140,447		8.00
Common Tier 1 (CET1)
Consolidated	272,732		15.53		79,002		4.50		N/A		N/A
Bank	240,708		13.71		79,002		4.50		114,114		6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated	272,732		9.83		110,949		4.00		N/A		N/A
Bank	240,708		8.68		110,949		4.00		138,687		5.00

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies

Summary of total amount of unfunded commitments to extend credit and standby letters of credit outstanding

	March 31, 2018		December 31, 2017
Commitments to make loans	$	264,536	$	268,401
Unused lines of credit	160,177		157,234
Standby letters of credit	70		70

Nature of Operations and Basis of Presentation (Details) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended
	Apr. 24, 2017 USD ($)	Nov. 30, 2017 USD ($) $ / shares shares	Mar. 31, 2018 USD ($) segment item
Nature of Operations and Basis of Presentation
Number of branches \| item			28
Number of reportable segments \| segment			1
Merger
Assets held under management			$ 451.0
Quantum Fund, LLC
Merger
Cash consideration	$ 2.9
Assets held under management	$ 425.0
Southfield, Michigan
Nature of Operations and Basis of Presentation
Number of branches \| item			1
San Francisco and Los Angeles, California
Nature of Operations and Basis of Presentation
Number of branches \| item			25
New York, New York
Nature of Operations and Basis of Presentation
Number of branches \| item			2
Common Stock \| IPO
Initial Public Offering
Number of shares of stock issued and sold \| shares		7,692,308
Offering price (in dollars per share) \| $ / shares		$ 12.00
Net proceeds from IPO		$ 85.5
Underwriting discounts and commissions		5.5
Offering expenses		$ 1.3
Principal Shareholder \| Quantum Fund, LLC
Merger
Equity interest of acquired entity that is owned by the principal shareholder of the Company and Bank (as a percent)	80.00%
Member of the Board of Directors \| Quantum Fund, LLC
Merger
Equity interest of acquired entity that is owned by a member of the Board of Directors of the Company and Bank (as a percent)	20.00%

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Loans receivables	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Residential real estate loans
Concentration of Credit Risk
Concentration of Credit Risk	82.00%	82.00%
California
Concentration of Credit Risk
Concentration of Credit Risk	96.00%	95.00%

Summary of Significant Accounting Policies - Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Non-Interest Income:
Non - interest income not with in the scope of ASC 606	$ 5,330	$ 4,965
Total non-interest income	6,037	5,586
Contract Balances
Contract asset balance	82		$ 91
Service charges on deposit accounts
Non-Interest Income:
Non - interest income with in the scope of ASC 606	52	40
Investment management and advisory fees
Non-Interest Income:
Non - interest income with in the scope of ASC 606	623	552
Interchange fees
Non-Interest Income:
Non - interest income with in the scope of ASC 606	25	26
Other service charges and fees
Non-Interest Income:
Non - interest income with in the scope of ASC 606	$ 7	$ 3

Investment Securities - Amortized Cost and Fair Value Corresponding Gross Unrealized Gains and Losses (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Available for sale:
Available for sale, Amortized Cost	$ 120,963,000		$ 122,775,000
Available for sale, Gross Unrealized Gain	67,000		55,000
Available for sale, Gross Unrealized Loss	(237,000)		(209,000)
Available for sale, Fair Value	120,793,000		122,621,000
Carrying value of debt securities held of any single issuer in excess of 10% of shareholders' equity	$ 0		$ 0
Threshold percentage of shareholders' equity above which securities of any single issuer exceed	10.00%		10.00%
Sales of debt securities available for sale	$ 0	$ 0
U.S. Treasury securities
Available for sale:
Available for sale, Amortized Cost	118,764,000		$ 120,216,000
Available for sale, Gross Unrealized Loss	(224,000)		(174,000)
Available for sale, Fair Value	118,540,000		120,042,000
Collateralized mortgage obligations
Available for sale:
Available for sale, Amortized Cost	1,888,000		1,953,000
Available for sale, Gross Unrealized Gain	67,000		55,000
Available for sale, Fair Value	1,955,000		2,008,000
Collateralized debt obligations
Available for sale:
Available for sale, Amortized Cost	311,000		606,000
Available for sale, Gross Unrealized Loss	(13,000)		(35,000)
Available for sale, Fair Value	$ 298,000		$ 571,000

Investment Securities - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available for sale, Amortized Cost
Available for sale, Amortized Cost	$ 120,963	$ 122,775
Available for sale, Fair Value
Available for sale, Fair Value	120,793	122,621
U.S. Treasury securities
Available for sale, Amortized Cost
Due less than one year	118,764
Available for sale, Amortized Cost	118,764	120,216
Available for sale, Fair Value
Due less than one year	118,540
Available for sale, Fair Value	118,540	120,042
Collateralized mortgage obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	1,888	1,953
Available for sale, Fair Value
Available for sale, Fair Value	1,955	2,008
Collateralized debt obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	311	606
Available for sale, Fair Value
Available for sale, Fair Value	$ 298	$ 571

Investment Securities - Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) security	Dec. 31, 2017 USD ($)
Fair Value
Less than 12 Months, Fair value	$ 118,540	$ 120,042
12 Months or More, Fair Value	298	571
Available for sale, Continuous unrealized loss position, Fair Value	118,838	120,613
Unrealized Losses
Less than 12 Months, Unrealized Losses	(224)	(174)
12 Months or More, Unrealized Losses	(13)	(35)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (237)	(209)
Number of debt securities in portfolio \| security	9
Number of debt securities in an unrealized loss position \| security	7
U.S. Treasury securities
Fair Value
Less than 12 Months, Fair value	$ 118,540	120,042
Available for sale, Continuous unrealized loss position, Fair Value	118,540	120,042
Unrealized Losses
Less than 12 Months, Unrealized Losses	(224)	(174)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(224)	(174)
Collateralized debt obligations
Fair Value
12 Months or More, Fair Value	298	571
Available for sale, Continuous unrealized loss position, Fair Value	298	571
Unrealized Losses
12 Months or More, Unrealized Losses	(13)	(35)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (13)	$ (35)

Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Equity Securities
Fair value of equity securities	$ 4,163		$ 4,227
Retained earnings	164,984		149,816
Equity securities with readily determinable fair values	3,917		3,981
Equity securities with readily determinable fair values
Net losses recorded during the period on equity securities	(64)
Unrealized losses recorded during the period on equity securities held at the reporting date	(64)
ASU 2016-01
Equity Securities
Retained earnings		$ (50)
Deferred taxes and accumulated other comprehensive income		$ 50
Level 3
Equity Securities
Investment in equity securities without readily determinable fair value	$ 246		$ 246

Loans - Major Categories of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Major categories of loans
Total Loans	$ 2,599,692	$ 2,612,814
Less: allowance for loan losses	(19,132)	(18,457)	$ (15,567)	$ (14,822)
Loans, net	2,580,560	2,594,357
Carrying value of loans pledged as collateral on FHLB borrowings	1,038,700	968,400
Construction loans
Major categories of loans
Total Loans	179,846	192,319
Less: allowance for loan losses	(2,979)	(2,218)	(959)	(679)
Real Estate loans \| Residential
Major categories of loans
Total Loans	2,134,447	2,132,641
Less: allowance for loan losses	(11,499)	(12,279)	(11,873)	(11,863)
Real Estate loans \| Commercial
Major categories of loans
Total Loans	239,204	247,076
Less: allowance for loan losses	(2,572)	(2,040)	(1,102)	(915)
Commercial and industrial loans, lines of credit
Major categories of loans
Total Loans	46,166	40,749
Less: allowance for loan losses	(616)	(469)	(376)	(373)
Other consumer loans \| Consumer
Major categories of loans
Total Loans	29	29
Less: allowance for loan losses	$ (1)	$ (1)	$ (2)	$ (2)

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Allowance for loan losses
Beginning balance	$ 18,457	$ 14,822
Provision for loan losses	641	600
Recoveries	34	145
Total ending balance	19,132	15,567
Construction loans
Allowance for loan losses
Beginning balance	2,218	679
Provision for loan losses	760	185
Recoveries	1	95
Total ending balance	2,979	959
Real Estate loans \| Residential
Allowance for loan losses
Beginning balance	12,279	11,863
Provision for loan losses	(782)
Recoveries	2	10
Total ending balance	11,499	11,873
Real Estate loans \| Commercial
Allowance for loan losses
Beginning balance	2,040	915
Provision for loan losses	501	147
Recoveries	31	40
Total ending balance	2,572	1,102
Commercial and industrial loans, lines of credit
Allowance for loan losses
Beginning balance	469	373
Provision for loan losses	147	3
Total ending balance	616	376
Other consumer loans \| Consumer
Allowance for loan losses
Beginning balance	1	2
Total ending balance	1	2
Unallocated
Allowance for loan losses
Beginning balance	1,450	990
Provision for loan losses	15	265
Total ending balance	$ 1,465	$ 1,255

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment And Based On Impairment Method (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 152	$ 154
Collectively evaluated for impairment	18,980	18,303
Total ending allowance balance	19,132	18,457	$ 15,567	$ 14,822
Loans:
Loans individually evaluated for impairment	3,231	3,269
Loans collectively evaluated for impairment	2,596,461	2,609,545
Total Loans	2,599,692	2,612,814
Construction loans
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	2,979	2,218
Total ending allowance balance	2,979	2,218	959	679
Loans:
Loans collectively evaluated for impairment	179,846	192,319
Total Loans	179,846	192,319
Real Estate loans \| Residential
Ending allowance balance attributable to loans:
Individually evaluated for impairment	46	37
Collectively evaluated for impairment	11,453	12,242
Total ending allowance balance	11,499	12,279	11,873	11,863
Loans:
Loans individually evaluated for impairment	122	122
Loans collectively evaluated for impairment	2,134,325	2,132,519
Total Loans	2,134,447	2,132,641
Real Estate loans \| Commercial
Ending allowance balance attributable to loans:
Individually evaluated for impairment	11	19
Collectively evaluated for impairment	2,561	2,021
Total ending allowance balance	2,572	2,040	1,102	915
Loans:
Loans individually evaluated for impairment	2,774	2,804
Loans collectively evaluated for impairment	236,430	244,272
Total Loans	239,204	247,076
Commercial and industrial loans, lines of credit
Ending allowance balance attributable to loans:
Individually evaluated for impairment	95	98
Collectively evaluated for impairment	521	371
Total ending allowance balance	616	469	376	373
Loans:
Loans individually evaluated for impairment	335	343
Loans collectively evaluated for impairment	45,831	40,406
Total Loans	46,166	40,749
Other consumer loans \| Consumer
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	1	1
Total ending allowance balance	1	1	2	2
Loans:
Loans collectively evaluated for impairment	29	29
Total Loans	29	29
Unallocated
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	1,465	1,450
Total ending allowance balance	$ 1,465	$ 1,450	$ 1,255	$ 990

Loans - Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Impaired loans by class of loans
Unpaid principal balance, with no related allowance	$ 1,560		$ 1,578
Unpaid principal balance, with a related allowance	1,870		1,885
Total Unpaid Principal Balance	3,430		3,463
Recorded investment, with no related allowance	1,373		1,394
Recorded investment, with a related allowance	1,858		1,875
Total Recorded Investment	3,231		3,269
Allowance for Loan Losses	152		154
Average recorded investment, with no related allowance	1,384	$ 1,492
Average recorded investment, with a related allowance	1,865	1,922
Total Average Recorded Investment	3,249	3,414
Interest Income Recognized, with no related allowance	18	19
Interest Income Recognized, with a related allowance	25	23
Total Interest Income Recognized	43	42
Cash Basis Interest Recognized, with no related allowance	12	19
Cash Basis Interest Recognized, with a related allowance	17	26
Total Cash Basis Interest Recognized	29	45
Real estate loan, First mortgage \| Residential
Impaired loans by class of loans
Unpaid principal balance, with a related allowance	122		122
Recorded investment, with a related allowance	122		122
Allowance for Loan Losses	46		37
Average recorded investment, with a related allowance	122	122
Interest Income Recognized, with a related allowance	1	1
Cash Basis Interest Recognized, with a related allowance	1	4
Real estate loan, Retail \| Commercial
Impaired loans by class of loans
Unpaid principal balance, with no related allowance	1,415		1,431
Recorded investment, with no related allowance	1,228		1,247
Average recorded investment, with no related allowance	1,238	1,308
Interest Income Recognized, with no related allowance	16	17
Cash Basis Interest Recognized, with no related allowance	10	17
Real estate loan, Offices \| Commercial
Impaired loans by class of loans
Unpaid principal balance, with a related allowance	1,558		1,567
Recorded investment, with a related allowance	1,546		1,557
Allowance for Loan Losses	11		19
Average recorded investment, with a related allowance	1,550	1,587
Interest Income Recognized, with a related allowance	21	19
Cash Basis Interest Recognized, with a related allowance	14	19
Real estate loan, Gas stations \| Commercial
Impaired loans by class of loans
Average recorded investment, with no related allowance		31
Private banking
Impaired loans by class of loans
Unpaid principal balance, with no related allowance	145		147
Unpaid principal balance, with a related allowance	190		196
Recorded investment, with no related allowance	145		147
Recorded investment, with a related allowance	190		196
Allowance for Loan Losses	95		$ 98
Average recorded investment, with no related allowance	146	153
Average recorded investment, with a related allowance	193	213
Interest Income Recognized, with no related allowance	2	2
Interest Income Recognized, with a related allowance	3	3
Cash Basis Interest Recognized, with no related allowance	2	2
Cash Basis Interest Recognized, with a related allowance	$ 2	$ 3

Loans - Investment in Nonaccrual and Loans Past Due Still Accruing by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	$ 4,986	$ 652
Loans Past Due Over 90 Days Still Accruing	129	131
Total Past Due	6,189	10,184
Loans Not Past Due	2,593,503	2,602,630
Total Loans	2,599,692	2,612,814
30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	1,026	9,009
60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	48	392
Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	5,115	783
Construction loans
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	179,846	192,319
Total Loans	179,846	192,319
Real Estate loans \| Residential
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	2,134,447	2,132,641
Real Estate loans \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	239,204	247,076
Real estate loan, First mortgage \| Residential
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	4,912	573
Loans Past Due Over 90 Days Still Accruing	129	131
Total Past Due	5,820	9,998
Loans Not Past Due	2,109,748	2,105,142
Total Loans	2,115,568	2,115,140
Real estate loan, First mortgage \| Residential \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	731	8,902
Real estate loan, First mortgage \| Residential \| 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	48	392
Real estate loan, First mortgage \| Residential \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	5,041	704
Real estate loan, Second mortgage \| Residential
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	295	107
Loans Not Past Due	18,584	17,394
Total Loans	18,879	17,501
Real estate loan, Second mortgage \| Residential \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	295	107
Real estate loan, Retail \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	74	79
Total Past Due	74	79
Loans Not Past Due	10,423	10,530
Total Loans	10,497	10,609
Real estate loan, Retail \| Commercial \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	74	79
Real estate loan, Apartments \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	61,388	59,582
Total Loans	61,388	59,582
Real estate loan, Offices \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	25,592	26,571
Total Loans	25,592	26,571
Real estate loan, Hotel \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	103,653	103,195
Total Loans	103,653	103,195
Real estate loan, Industrial \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	11,317	15,907
Total Loans	11,317	15,907
Real estate loan, Gas stations \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	1,036	1,067
Total Loans	1,036	1,067
Real estate loan, Other \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	25,721	30,145
Total Loans	25,721	30,145
Commercial and industrial loans, lines of credit
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	46,166	40,749
Private banking
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	26,587	22,898
Total Loans	26,587	22,898
C&I lending
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	19,579	17,851
Total Loans	19,579	17,851
Other consumer loans \| Consumer
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	29	29
Total Loans	$ 29	$ 29

Loans - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) loan	Dec. 31, 2017 USD ($)
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	$ 3,041	$ 3,073
Allowance for outstanding loan losses classified as troubled debt restructurings	$ 57	$ 56
Number of TDRs subsequently defaulted \| loan	0

Loans - Risk Rating of Loans by Class of Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Recorded investment in loans
Total	$ 2,599,692		$ 2,612,814
Portfolio loans sold during the period	112,169	$ 105,184
Gain on sale of portfolio loans	3,941	3,865
Pass
Recorded investment in loans
Total	2,565,997		2,589,151
Special Mention
Recorded investment in loans
Total	23,216		18,680
Substandard
Recorded investment in loans
Total	9,850		4,463
Doubtful
Recorded investment in loans
Total	629		520
Construction loans
Recorded investment in loans
Total	179,846		192,319
Construction loans \| Pass
Recorded investment in loans
Total	160,343		177,241
Construction loans \| Special Mention
Recorded investment in loans
Total	16,049		11,670
Construction loans \| Substandard
Recorded investment in loans
Total	3,454		3,408
Real Estate loans \| Residential
Recorded investment in loans
Total	2,134,447		2,132,641
Real Estate loans \| Commercial
Recorded investment in loans
Total	239,204		247,076
Real estate loan, First mortgage \| Residential
Recorded investment in loans
Total	2,115,568		2,115,140
Real estate loan, First mortgage \| Pass \| Residential
Recorded investment in loans
Total	2,110,600		2,114,511
Real estate loan, First mortgage \| Substandard \| Residential
Recorded investment in loans
Total	4,339		109
Real estate loan, First mortgage \| Doubtful \| Residential
Recorded investment in loans
Total	629		520
Real estate loan, Second mortgage \| Residential
Recorded investment in loans
Total	18,879		17,501
Real estate loan, Second mortgage \| Pass \| Residential
Recorded investment in loans
Total	18,879		17,501
Real estate loan, Retail \| Commercial
Recorded investment in loans
Total	10,497		10,609
Real estate loan, Retail \| Pass \| Commercial
Recorded investment in loans
Total	9,268		9,363
Real estate loan, Retail \| Special Mention \| Commercial
Recorded investment in loans
Total			1,167
Real estate loan, Retail \| Substandard \| Commercial
Recorded investment in loans
Total	1,229		79
Real estate loan, Apartments \| Commercial
Recorded investment in loans
Total	61,388		59,582
Real estate loan, Apartments \| Pass \| Commercial
Recorded investment in loans
Total	59,798		58,472
Real estate loan, Apartments \| Special Mention \| Commercial
Recorded investment in loans
Total	1,590		1,110
Real estate loan, Offices \| Commercial
Recorded investment in loans
Total	25,592		26,571
Real estate loan, Offices \| Pass \| Commercial
Recorded investment in loans
Total	25,592		26,571
Real estate loan, Hotel \| Commercial
Recorded investment in loans
Total	103,653		103,195
Real estate loan, Hotel \| Pass \| Commercial
Recorded investment in loans
Total	103,653		103,195
Real estate loan, Industrial \| Commercial
Recorded investment in loans
Total	11,317		15,907
Real estate loan, Industrial \| Pass \| Commercial
Recorded investment in loans
Total	11,317		15,907
Real estate loan, Gas stations \| Commercial
Recorded investment in loans
Total	1,036		1,067
Real estate loan, Gas stations \| Pass \| Commercial
Recorded investment in loans
Total	1,036		1,067
Real estate loan, Other \| Commercial
Recorded investment in loans
Total	25,721		30,145
Real estate loan, Other \| Pass \| Commercial
Recorded investment in loans
Total	20,379		24,741
Real estate loan, Other \| Special Mention \| Commercial
Recorded investment in loans
Total	4,704		4,733
Real estate loan, Other \| Substandard \| Commercial
Recorded investment in loans
Total	638		671
Commercial and industrial loans, lines of credit
Recorded investment in loans
Total	46,166		40,749
Private banking
Recorded investment in loans
Total	26,587		22,898
Private banking \| Pass
Recorded investment in loans
Total	26,397		22,702
Private banking \| Substandard
Recorded investment in loans
Total	190		196
C&I lending
Recorded investment in loans
Total	19,579		17,851
C&I lending \| Pass
Recorded investment in loans
Total	18,706		17,851
C&I lending \| Special Mention
Recorded investment in loans
Total	873
Other consumer loans \| Consumer
Recorded investment in loans
Total	29		29
Other consumer loans \| Pass \| Consumer
Recorded investment in loans
Total	29		$ 29
Residential real estate mortgage loans
Recorded investment in loans
Portfolio loans sold during the period	$ 112,200	$ 105,200

Mortgage Servicing Rights - Principle Balance by Category (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Mortgage Servicing Rights
Custodial escrow balances maintained on serviced loans	$ 15,458	$ 11,944
FNMA
Mortgage Servicing Rights
Principal balance of mortgage loan portfolios	72,707	73,039
FHLB
Mortgage Servicing Rights
Principal balance of mortgage loan portfolios	93,402	92,697
Private investors
Mortgage Servicing Rights
Principal balance of mortgage loan portfolios	$ 518,557	$ 442,984

Mortgage Servicing Rights - Activity and Related Valuation Allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Mortgage servicing rights activity
Mortgage servicing rights Beginning of period	$ 6,706	$ 4,454
Additions	1,521	1,260
Amortization	(426)	(260)
Mortgage servicing rights End of period	7,801	5,454
Valuation allowance at beginning of period	210	40
Additions (recoveries)	(189)	(10)
Valuation allowance at end of period	21	30
Net carrying amount	7,780	5,424	$ 6,496
Servicing fee income (expense), net of amortization of servicing rights and changes in the valuation allowance	$ 477	$ 169

Mortgage Servicing Rights - Valuation techniques (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Mortgage Servicing Rights
Fair value of mortgage servicing rights	$ 9,074	$ 7,086
Weighted average default rate	0.20%	0.20%
Minimum
Mortgage Servicing Rights
Discount rate range	9.50%	9.50%
Prepayment speed range	6.80%	6.80%
Maximum
Mortgage Servicing Rights
Discount rate range	12.00%	12.00%
Prepayment speed range	31.20%	36.00%

Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Deposits
Interest-bearing time deposits	$ 679,622	$ 663,472
Brokered time deposits	79,510	156,084
Time deposits of $250,000 and over	$ 150,523	$ 129,101

Federal Home Loan Bank Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Federal Home Loan Bank Borrowings
Short-term fixed rate advances	$ 125,000	$ 148,000
Short-term adjustable rate advances	15,000
Total short-term FHLB advances	140,000	148,000
Long-term fixed rate advances	190,000	190,000
Total FHLB advances	330,000	338,000
FHLB overdraft line of credit	12,937
Total	$ 342,937	$ 338,000
FHLB overdraft line of credit (as percent)	2.06%	1.67%
Short term
Federal Home Loan Bank Borrowings
Short-term adjustable rate(as percent)	2.06%
FHLB interest rates (as percent)	1.78%
Minimum
Federal Home Loan Bank Borrowings
FHLB interest rates (as percent)	0.98%	0.98%
Minimum \| Short term
Federal Home Loan Bank Borrowings
FHLB interest rates (as percent)		1.47%
Maximum
Federal Home Loan Bank Borrowings
FHLB interest rates (as percent)	1.18%	1.18%
Maximum \| Short term
Federal Home Loan Bank Borrowings
FHLB interest rates (as percent)		1.56%

Federal Home Loan Bank Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Federal Home Loan Bank Borrowings
Total FHLB advances	$ 330,000	$ 338,000
Additional borrowing capacity	374,000
Callable Option
Federal Home Loan Bank Borrowings
Total FHLB advances	157,000
Callable Option September, 2021
Federal Home Loan Bank Borrowings
Total FHLB advances	67,000
Callable Option October, 2021
Federal Home Loan Bank Borrowings
Total FHLB advances	$ 90,000

Federal Home Loan Bank Borrowings - FHLB Overdraft Line of Credit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Federal Home Loan Bank Borrowings
FHLB line of credit agreement maximum borrowing limit	$ 50,000
FHLB overdraft line of credit average borrowings outstanding	3,673	$ 14,597
FHLB overdraft line of credit	$ 12,937
FHLB overdraft line of credit (as percent)	2.06%		1.67%
FHLB, agreement term	1 year
Carrying value of loans pledged as collateral on FHLB borrowings	$ 1,038,700		$ 968,400

Federal Home Loan Bank Borrowings - Other Borrowings (Details) - Other Banks - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Other Borrowings
Maximum borrowing capacity	$ 60
Outstanding balance	$ 0	$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Subordinated Notes, net (Details) - USD ($) $ in Thousands	3 Months Ended
Subordinated Notes, net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Aug. 31, 2017	Sep. 30, 2016
Subordinated Notes, net
Total	$ 64,923		$ 64,889
Interest expense	1,172	$ 908
Subordinated notes
Subordinated Notes, net
7.0% fixed to floating rate subordinated notes	65,000		65,000
Unamortized note premium	575		588
Unamortized debt issuance costs	(652)		(699)
Total	$ 64,923		$ 64,889
Interest rate (as a percent)	7.00%
Interest expense	$ 1,172	$ 908
Redemption price percentage of outstanding principal amount	100.00%
Subordinated notes issued April through September, 2016 \| Subordinated notes
Subordinated Notes, net
7.0% fixed to floating rate subordinated notes					$ 50,000
Unamortized debt issuance costs					$ (729)
Subordinated notes issued in August, 2017 \| Subordinated notes
Subordinated Notes, net
7.0% fixed to floating rate subordinated notes				$ 15,000
Unamortized note premium				611
Unamortized debt issuance costs				$ (191)
LIBOR \| Subordinated notes
Subordinated Notes, net
Variable interest rate on subordinate notes (in percent)	5.82%

Stock-based Compensation (Details) - 2017 Omnibus Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Mar. 21, 2018	Mar. 31, 2018
Stock-based Compensation
Number of shares authorized		4,237,100
Stock Options
Stock-based Compensation
Percentage of awards vested in each of third and fourth year		50.00%
Maximum term of stock awards granted		10 years
Number of share instruments issued	92,625
Weighted average grant-date fair value	$ 4.56
Fair value assumptions used in Black-Scholes option pricing model
Exercise price of options	$ 13.73	$ 13.73
Risk-free interest rate		2.80%
Expected term (in years)		6 years 9 months
Expected stock price volatility		23.70%
Dividend yield		0.29%
Number of Shares
Granted		92,625
Outstanding at March 31, 2018		92,625
Weighted Average Exercise Price
Granted		$ 13.73
Outstanding at March 31, 2018		$ 13.73
Outstanding share options
Weighted Average Remaining Contractual Term (Years)		9 years 11 months 19 days
Share-based compensation costs recognized		$ 3
Total unrecognized compensation cost - stock options		$ 419
Unrecognized cost expected to be recognized over a weighted-average period		3 years 9 months
Number of options exercisable		0
Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued	39,655
Outstanding share options
Weighted average grant-date fair value	$ 13.60
Share-based compensation costs recognized		$ 6
Total unrecognized compensation cost - restricted stock awards		$ 534
Unrecognized cost expected to be recognized over a weighted-average period		3 years 5 months 23 days
Key employees Restricted Stock Awards
Stock-based Compensation
Percentage of awards vested in each of third and fourth year	50.00%
Number of share instruments issued	33,100
Non-employee directors Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued	6,555

Income Per Share (Details)	1 Months Ended	3 Months Ended
Income Per Share (Details)	Sep. 30, 2017	Mar. 31, 2018 shares	Mar. 31, 2017 shares
Income per share
Number of dilutive securities outstanding (in shares)			0
Common Stock
Income per share
Stock split ratio	1,000
Common Stock \| Restricted Stock Awards
Income per share
Potentially dilutive securities excluded from diluted per share calculation		39,655
Common Stock \| Stock Options
Income per share
Potentially dilutive securities excluded from diluted per share calculation		92,625

Fair Values of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available for sale debt securities:
Available for sale debt securities, at fair value	$ 120,793	$ 122,621
Fair value of transfers between Levels
Transfers between Level 1 to Level 2 of fair value hierarchy, assets	0	0
Transfers between Level 2 to Level 1 of fair value hierarchy, assets	0	0
U.S. Treasury securities
Available for sale debt securities:
Available for sale debt securities, at fair value	118,540	120,042
U.S. Treasury securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	118,540	120,042
U.S. Treasury securities \| Level 1 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	118,540	120,042
Collateralized mortgage obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	1,955	2,008
Collateralized mortgage obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	1,955	2,008
Collateralized mortgage obligations \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	1,955	2,008
Collateralized debt obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	298	571
Collateralized debt obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	298	571
Collateralized debt obligations \| Level 3 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	298	571
Equity securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	3,917	4,227
Equity securities \| Level 1 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	$ 3,917	3,981
Equity securities \| Level 3 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value		$ 246

Fair Values of Financial Instruments - Reconciliation and income statement classification using Level 3 inputs (Details) - Recurring - Level 3 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Collateralized debt obligations
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance of recurring Level 3 assets at beginning of period	$ 571	$ 585
Included in other comprehensive income (loss)	22	(10)
Principal maturities/settlements	(295)	(4)
Balance at end of period	298	571
Investment income
Unrealized losses on investments	13	35
Interest income	5	21
Equity securities
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance of recurring Level 3 assets at beginning of period	$ 246	529
Principal maturities/settlements		(283)
Balance at end of period		246
Investment income
Unrealized losses on investments		0
Dividend income		$ 15

Fair Values of Financial Instruments - Quantitative information about recurring Level 3 fair value measurements (Details) - Level 3 - Recurring - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Collateralized debt obligations
Unobservable inputs
Investment securities available for sale, at fair value	$ 298	$ 571	$ 585
Collateralized debt obligations \| Discounted cash flow
Unobservable inputs
Investment securities available for sale, at fair value	$ 298	$ 571
Collateral default rate	0.00%	0.00%
Recovery probability	15.00%	15.00%
Equity securities
Unobservable inputs
Investment securities available for sale, at fair value		$ 246	$ 529

Fair Values of Financial Instruments - Carrying amounts and estimated fair values of financial instruments not carried at fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets held at fair value on a non recurring basis		$ 0	$ 0
Carrying Amount
Financial Assets
Cash and due from banks	$ 37,541		40,147
Mortgage loans held for sale	200,467		112,866
Loans, net	2,580,560		2,594,357
Financial Liabilities
Time deposits	679,622		663,472
Federal Home Loan Bank borrowings	342,937		338,000
Subordinated notes, net	64,923		64,889
Fair Value
Financial Assets
Cash and due from banks	37,541		40,147
Mortgage loans held for sale	204,205		115,619
Loans, net	2,628,979		2,635,986
Financial Liabilities
Time deposits	675,620		660,380
Federal Home Loan Bank borrowings	332,507		330,004
Subordinated notes, net	66,950		67,485
Level 1 \| Fair Value
Financial Assets
Cash and due from banks	37,541		40,147
Level 2 \| Fair Value
Financial Assets
Mortgage loans held for sale	204,205		115,619
Financial Liabilities
Time deposits	675,620		660,380
Federal Home Loan Bank borrowings	332,507		330,004
Subordinated notes, net	66,950		67,485
Level 3 \| Fair Value
Financial Assets
Loans, net	$ 2,628,979		$ 2,635,986

Income Taxes - Tax Cut and Jobs Act (Details) - USD ($) $ in Millions		3 Months Ended		12 Months Ended
	Jan. 01, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Taxes
Federal statutory tax rate (as a percentage)	21.00%	21.00%	35.00%	35.00%
Deferred income tax expense due to effect of the Tax Act				$ 3.3

Income Taxes - Reconciliation of income tax rate (Details)		3 Months Ended		12 Months Ended
	Jan. 01, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Reconciliation of U.S. federal statutory tax rate and effective income tax rate
U.S. federal statutory rate (as a percentage)	21.00%	21.00%	35.00%	35.00%
Effect of:
State taxes, net of federal benefit (as a percentage)		7.90%	6.00%
Loss incurred by pass-through entity (as a percentage)			0.70%
Income on cash surrender value of bank-owned life insurance (as a percentage)		(0.20%)	(0.30%)
Effective tax rate (as a percentage)		28.70%	41.40%

Regulatory Capital Requirements - Capital adequacy requirements (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2015	Dec. 31, 2017
Regulatory Capital Requirements
Capital conservation buffer (as a percent)	1.875%		0.00%
Total Capital Weighted Assets
Well Capitalized (as a percent)	10.00%
Adequately Capitalized (as a percent)	8.00%			8.00%
Undercapitalized (as a percent)	6.00%
Tier 1 Capital Weighted Assets
Well Capitalized (as a percent)	8.00%
Adequately Capitalized (as a percent)	6.00%			6.00%
Undercapitalized (as a percent)	4.00%
Tier 1 Capital to Average Assets
Well Capitalized (as a percent)	5.00%
Adequately Capitalized (as a percent)	4.00%			4.00%
Undercapitalized (as a percent)	3.00%
Common Tier 1 (CET1)
Well Capitalized (as a percent)	6.50%
Adequately Capitalized (as a percent)	4.50%			4.50%
Undercapitalized (as a percent)	3.00%
Forecast
Regulatory Capital Requirements
Capital conservation buffer (as a percent)		2.50%

Regulatory Capital Requirements - Actual and minimum required capital amounts and ratios and Dividend Restrictions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Total adjusted capital to risk weighted assets, Amount
Actual	$ 371,915	$ 365,078
For Capital Adequacy Purposes	$ 146,022	$ 140,447
Total adjusted capital to risk weighted assets, Ratio
Actual (as a percent)	20.38%	20.28%
For Capital Adequacy Purposes (as a percent)	8.00%	8.00%
To be Well Capitalized (as a percent)	10.00%
Tier 1 (core) capital to risk weighted assets, Amount
Actual	$ 287,860	$ 272,732
For Capital Adequacy Purposes	$ 109,517	$ 105,336
Tier 1 (core) capital to risk weighted assets, Ratio
Actual (as a percent)	15.77%	15.53%
For Capital Adequacy Purposes (as a percent)	6.00%	6.00%
To be Well Capitalized (as a percent)	8.00%
Common Tier 1 (CET1), Amount
Actual	$ 287,860	$ 272,732
For Capital Adequacy Purposes	$ 82,138	$ 79,002
Common Tier 1 (CET1), Ratio
Actual (as a percent)	15.77%	15.53%
For Capital Adequacy Purposes (as a percent)	4.50%	4.50%
To be Well Capitalized (as a percent)	6.50%
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 287,860	$ 272,732
For Capital Adequacy Purposes	$ 118,383	$ 110,949
Tier 1 (core) capital to adjusted tangible assets, Ratio
Actual (as a percent)	9.73%	9.83%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To be Well Capitalized (as a percent)	5.00%
Dividend Restrictions
Consolidated retained earnings available to pay dividends	$ 139,900
Minimum percentage of assets be maintained as per Qualified Thrift Lender ("QTL") test	65.00%
Bank
Total adjusted capital to risk weighted assets, Amount
Actual	$ 275,118	$ 259,165
For Capital Adequacy Purposes	146,019	140,447
To be Well Capitalized	$ 182,524	$ 175,559
Total adjusted capital to risk weighted assets, Ratio
Actual (as a percent)	15.07%	14.76%
For Capital Adequacy Purposes (as a percent)	8.00%	8.00%
To be Well Capitalized (as a percent)	10.00%	10.00%
Tier 1 (core) capital to risk weighted assets, Amount
Actual	$ 255,986	$ 240,708
For Capital Adequacy Purposes	109,515	105,336
To be Well Capitalized	$ 146,019	$ 140,447
Tier 1 (core) capital to risk weighted assets, Ratio
Actual (as a percent)	14.02%	13.71%
For Capital Adequacy Purposes (as a percent)	6.00%	6.00%
To be Well Capitalized (as a percent)	8.00%	8.00%
Common Tier 1 (CET1), Amount
Actual	$ 255,986	$ 240,708
For Capital Adequacy Purposes	82,136	79,002
To be Well Capitalized	$ 118,641	$ 114,114
Common Tier 1 (CET1), Ratio
Actual (as a percent)	14.02%	13.71%
For Capital Adequacy Purposes (as a percent)	4.50%	4.50%
To be Well Capitalized (as a percent)	6.50%	6.50%
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 255,986	$ 240,708
For Capital Adequacy Purposes	118,383	110,949
To be Well Capitalized	$ 147,978	$ 138,687
Tier 1 (core) capital to adjusted tangible assets, Ratio
Actual (as a percent)	8.65%	8.68%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To be Well Capitalized (as a percent)	5.00%	5.00%

Related Party Transactions (Details) - USD ($) $ in Thousands		3 Months Ended
	Apr. 24, 2017	Mar. 31, 2018	Mar. 31, 2017
Charitable donation to foundation \| Member of the Board of Directors
Related party transactions
Amount of related party transaction		$ 225	$ 225
Lease of storage and office space \| Principal Shareholder
Related party transactions
Amount of related party transaction		17	9
Data processing and programming services provided \| Principal Shareholder
Related party transactions
Amount of related party transaction		$ 25	27
Quantum Fund, LLC \| Member of the Board of Directors
Related party transactions
Equity interest of acquired entity that is owned by a member of the Board of Directors of the Company and Bank (as a percent)	20.00%
Quantum Fund, LLC \| Principal Shareholder
Related party transactions
Equity interest of acquired entity that is owned by the principal shareholder of the Company and Bank (as a percent)	80.00%
Quantum Fund, LLC \| Business acquired, owned by principal shareholder and board member \| Member of the Board of Directors
Related party transactions
Equity interest of acquired entity that is owned by a member of the Board of Directors of the Company and Bank (as a percent)	20.00%
Compensation related expenses to related party			$ 125
Quantum Fund, LLC \| Business acquired, owned by principal shareholder and board member \| Principal Shareholder
Related party transactions
Equity interest of acquired entity that is owned by the principal shareholder of the Company and Bank (as a percent)	80.00%

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Commitments and Contingencies
Rent expense	$ 921	$ 825
Commitment to make loans
Commitments and Contingencies
Face amount	264,536		$ 268,401
Unused lines of credit
Commitments and Contingencies
Face amount	160,177		157,234
Standby letters of credit
Commitments and Contingencies
Face amount	70		$ 70
Real Estate loans \| Residential \| Unfunded Commitments to Extend Credit
Commitments and Contingencies
Outstanding commitments regarding fixed rate loans	6,072
Outstanding commitments with varying interest rates	$ 258,464
Real Estate loans \| Residential \| Minimum \| Unfunded Commitments to Extend Credit
Commitments and Contingencies
Fixed interest rate (as a percent)	3.75%
Variable interest rate (as a percentage)	3.75%
Maturity period	10 years
Maturity period for variable interest loans	25 years
Real Estate loans \| Residential \| Maximum \| Unfunded Commitments to Extend Credit
Commitments and Contingencies
Fixed interest rate (as a percent)	7.00%
Variable interest rate (as a percentage)	7.125%
Maturity period	30 years
Maturity period for variable interest loans	30 years

Subsequent Events - (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
Subsequent Events - (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Mar. 31, 2018	Mar. 31, 2017
Subsequent events
Proceeds from the sale of portfolio loans		$ 112,169	$ 105,184
Gain on sale of portfolio loans		3,941	3,865
Residential real estate mortgage loans
Subsequent events
Proceeds from the sale of portfolio loans		$ 112,200	$ 105,200
Residential real estate mortgage loans \| Subsequent Event
Subsequent events
Proceeds from the sale of portfolio loans	$ 88,000
Gain on sale of portfolio loans	$ 3,200

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited)
Dividends paid per common share (in dollars per share)	$ 0.01	$ 0.04