Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2018	Mar. 13, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	Sterling Bancorp, Inc.
Entity Central Index Key	0001680379
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		51,979,370
Entity Public Float			$ 240.9
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	true
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 52,526	$ 40,147
Interest-bearing deposits with other banks	1,100
Investment securities	148,896	126,848
Mortgage loans held for sale	1,248	112,866
Loans, net of allowance for loan losses of $21,850 and $18,457	2,895,953	2,594,357
Accrued interest receivable	13,529	11,493
Mortgage servicing rights, net	10,633	6,496
Leasehold improvements and equipment, net	9,489	7,043
Federal Home Loan Bank stock, at cost	22,950	22,950
Cash surrender value of bank-owned life insurance	31,302	30,680
Deferred tax asset, net	6,122	6,847
Other assets	3,026	2,231
Total assets	3,196,774	2,961,958
Liabilities:
Noninterest-bearing deposits	76,815	73,682
Interest-bearing deposits	2,375,870	2,171,428
Total deposits	2,452,685	2,245,110
Federal Home Loan Bank borrowings	293,000	338,000
Subordinated notes, net	65,029	64,889
Accrued expenses and other liabilities	51,003	40,661
Total liabilities	2,861,717	2,688,660
Commitments and Contingencies (Note 17)
Shareholders' equity:
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding
Additional paid-in capital	12,713	12,416
Retained earnings	211,115	149,816
Accumulated other comprehensive loss	(9)	(172)
Total shareholders' equity	335,057	273,298
Total liabilities and shareholders' equity	3,196,774	2,961,958
Common stock
Shareholders' equity:
Common stock, voting, no par value, authorized 500,000,000 shares; issued and outstanding 53,012,283 and 52,963,308 shares at December 31, 2018 and 2017, respectively	$ 111,238	$ 111,238

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Allowance for loan losses	$ 21,850	$ 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)	53,012,283	52,963,308
Common stock, outstanding (in shares)	53,012,283	52,963,308

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest income
Interest and fees on loans	$ 157,499	$ 122,789	$ 90,719
Interest and dividends on investment securities and restricted stock	3,679	1,890	1,180
Other interest	593	157	57
Total interest income	161,771	124,836	91,956
Interest expense
Interest on deposits	32,031	17,570	11,428
Interest on Federal Home Loan Bank borrowings	4,951	3,795	2,439
Interest on subordinated notes	4,689	4,070	1,978
Total interest expense	41,671	25,435	15,845
Net interest income	120,100	99,401	76,111
Provision for loan losses	3,229	2,700	1,280
Net interest income after provision for loan losses	116,871	96,701	74,831
Non-interest income
Gain (loss) on sale of investment securities	86	119	(898)
Gain (loss) on sale of mortgage loans held for sale	240	(381)	1,541
Gain on sale of portfolio loans	16,433	10,062	8,016
Unrealized losses on equity securities	(87)
Income on cash surrender value of bank-owned life insurance	1,193	1,175	1,166
Other income	1,758	942	1,006
Total non-interest income	22,037	14,508	14,228
Non-interest expense
Salaries and employee benefits	28,438	23,778	17,812
Occupancy and equipment	7,250	5,986	4,891
Professional fees	3,118	1,673	1,466
Advertising and marketing	1,640	1,025	1,449
FDIC assessments	1,447	1,296	990
Data processing	1,223	1,059	986
Other	7,220	5,944	5,016
Total non-interest expense	50,336	40,761	32,610
Income before income taxes	88,572	70,448	56,449
Income tax expense	25,104	32,471	23,215
Net income	$ 63,468	$ 37,977	$ 33,234
Income per share, basic and diluted (in dollars per share)	$ 1.20	$ 0.82	$ 0.73
Weighted average common shares outstanding:
Basic (in shares)	52,963,308	46,219,367	45,271,000
Diluted (in shares)	52,965,567	46,219,367	45,271,000
Service charges and fees
Non-interest income
Non-interest income	$ 379	$ 253	$ 188
Investment management and advisory fees
Non-interest income
Non-interest income	$ 2,035	$ 2,338	$ 3,209

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 63,468	$ 37,977	$ 33,234
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investment securities, arising during the period, net of tax effect of $48, $(13), and $23, respectively	181	(26)	43
Reclassification adjustment for (gains) losses included in net income of $(86), $(119), and $898, respectively, included in gain (loss) on sale of investment securities, net of tax effect of $18, $41, and $(314), respectively	(68)	(78)	584
Total other comprehensive income (loss)	113	(104)	627
Comprehensive income	$ 63,581	$ 37,873	$ 33,861

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income
Unrealized gains (losses) on available for sale debt securities, arising during the year, tax effect	$ 48	$ (13)	$ 23
Reclassification adjustment for (gains) losses included in net income on sale of investment securities, before tax	(86)	(119)	898
Reclassification adjustment for gains (losses) included in net income on sale of investment securities, tax expense	$ 18	$ 41	$ (314)

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common stock, voting Common stock	Common stock, non-voting Common stock	Common stock, non-voting	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at beginning of the year at Dec. 31, 2015	$ 22,863	$ 2,885		$ 14,418	$ 96,779	$ (667)	$ 136,278
Balance at beginning of the year (in shares) at Dec. 31, 2015	40,199,000	5,072,000
Increase (Decrease) in Stockholders' Equity
Net income					33,234		33,234
Capital contributions from controlling member of merged entity (Note 1)				700			700
Other comprehensive income (loss)						627	627
Dividends distributed					(8,567)		(8,567)
Balance at end of the year at Dec. 31, 2016	$ 22,863	$ 2,885		15,118	121,446	(40)	162,272
Balance at end of the year (in shares) at Dec. 31, 2016	40,199,000	5,072,000
Increase (Decrease) in Stockholders' Equity
Reclassification of certain income tax effects (Note 2)					28	(28)
Net income					37,977		37,977
Exchange of 5,072,000 shares of non-voting common stock for 5,027,000 shares of voting common stock (Note 10)	$ 2,885	$ (2,885)
Exchange of 5,072,000 shares of non-voting common stock for 5,027,000 shares of voting common stock (Note 10) (in shares)	5,072,000	(5,072,000)	5,072,000
Issuance of 7,692,308 shares of common stock, net of offering expenses of $6,818 (Note 10)	$ 85,490						$ 85,490
Issuance of 7,692,308 shares of common stock, net of offering expenses of $6,818 (Note 10) (in shares)	7,692,308						7,692,308
Capital contributions from controlling member of merged entity (Note 1)				218			$ 218
Distribution to members of merged entity (Note 1)				(2,920)			(2,920)
Other comprehensive income (loss)						(104)	(104)
Dividends distributed					(9,635)		(9,635)
Balance at end of the year at Dec. 31, 2017	$ 111,238			12,416	149,816	(172)	273,298
Balance at end of the year (in shares) at Dec. 31, 2017	52,963,308
Increase (Decrease) in Stockholders' Equity
Net income					63,468		63,468
Stock-based compensation				297			297
Stock-based compensation (in shares)	48,975
Other comprehensive income (loss)						113	113
Dividends distributed					(2,119)		(2,119)
Balance at end of the year at Dec. 31, 2018	$ 111,238			$ 12,713	$ 211,115	$ (9)	$ 335,057
Balance at end of the year (in shares) at Dec. 31, 2018	53,012,283

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares
Number of shares of stock issued and sold	7,692,308
Offering expenses \| $	$ 6,818
Dividends paid per common share (in dollars per share) \| $ / shares	$ 0.21
Common stock, voting
Number of shares issued on exchange	5,027,000
Common stock, non-voting
Number of shares exchanged	5,072,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows From Operating Activities
Net income	$ 63,468	$ 37,977	$ 33,234
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	3,229	2,700	1,280
Deferred income taxes	696	2,669	(1,041)
(Gain) loss on sale of investment securities	(86)	(119)	898
Unrealized losses on equity securities	87
Amortization (accretion), net, on investment securities	(876)	40	33
Depreciation and amortization on leasehold improvements and equipment	1,399	1,191	1,058
Amortization of intangible asset	450	450	450
Origination, premium paid and purchase of loans, net of principal payments, mortgage loans held for sale	(47,778)	(94,986)	(72,279)
Proceeds from the sale of mortgage loans held for sale	47,868	98,315	71,817
(Gain) loss on sale of mortgage loans held for sale	(240)	381	(1,541)
Gain on sale of portfolio loans	(16,433)	(10,062)	(8,016)
Increase in cash surrender value of bank-owned life insurance	(622)	(652)	(697)
Amortization, net of valuation allowance adjustments, of mortgage servicing rights	1,915	1,607	625
Stock-based compensation	297
Other	140	131	35
Change in operating assets and liabilities:
Accrued interest receivable	(2,036)	(3,324)	(2,107)
Other assets	(1,245)	(3,918)	(5,201)
Accrued expenses and other liabilities	10,342	12,013	10,156
Net cash provided by operating activities	60,575	44,413	28,704
Cash Flows From Investing Activities
Purchase of interest-bearing deposits with other banks	(1,100)
Investment securities: Maturities and principal receipts	121,179	80,890	66,359
Investment securities: Sales	14,964	96,432	596
Investment securities: Purchases	(157,174)	(228,643)	(93,871)
Purchases of investment securities, restricted stock		(4,590)	(1,235)
Loans originated, net of repayments	(658,322)	(1,024,824)	(687,318)
Proceeds from the sale of portfolio loans	475,646	308,404	287,368
Purchase of leasehold improvements and equipment	(3,845)	(2,399)	(2,004)
Proceeds from the sale of other real estate owned			1,359
Net cash used in investing activities	(208,652)	(774,730)	(428,746)
Cash Flows From Financing Activities
Net increase in deposits	207,575	629,965	385,385
Proceeds from advances from Federal Home Loan Bank	6,222,000	4,541,000	5,004,000
Repayments of advances from Federal Home Loan Bank	(6,267,000)	(4,483,000)	(5,034,000)
Net change in line of credit with Federal Home Loan Bank		(28,198)	11,761
Proceeds from issuance of subordinated notes		15,611	50,000
Payment of debt issuance costs		(191)	(729)
Proceeds from issuance of shares of common stock, net of offering costs		85,490
Capital contributions from controlling member of merged entity		218	700
Distribution to members of merged entity		(2,920)
Dividends paid to shareholders	(2,119)	(9,635)	(8,567)
Net cash provided by financing activities	160,456	748,340	408,550
Net change in cash and due from banks	12,379	18,023	8,508
Cash and due from banks at beginning of period	40,147	22,124	13,616
Cash and due from banks at end of period	52,526	40,147	22,124
Cash paid:
Interest	34,792	23,615	14,594
Income taxes	26,055	28,010	26,350
Noncash investing and financing activities:
Transfer from loans to other real estate owned			$ 48
Transfers of residential real estate loans to mortgage loans held for sale	431,384	$ 111,862
Transfers of residential real estate loans from mortgage loans held for sale	$ 77,887

Nature of Operations and Basis of Presentation	12 Months Ended
Nature of Operations and Basis of Presentation	Dec. 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 provides deposit products, consisting primarily of checking, savings and term certificate accounts. The Bank operates through a network of 29 branches of which 25 branches are located in San Francisco and Los Angeles, California with the remaining branches located in New York, New York, Southfield, Michigan and in the greater Seattle market. 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. Basis of Presentation Adjustments to Prior Years' Financial Statements In the second quarter of 2018, the Company corrected the classification of commitment fees, net of direct loan origination costs, earned on construction loans and other lines of credit to commercial customers in its consolidated statements of income to the financial statement caption, interest and fees on loans, within interest income, which were previously reported in service charges and fees, within non-interest income. The Company has made the correction to conform with accounting principles generally accepted in the United States of America ("U.S. GAAP"). As a result, prior years' financial statements included herein have been adjusted from the amounts previously reported. The amount of the adjustment to decrease service charges and fees, and increase interest and fees on loans was $2,088 and $1,153 for the year ended December 31, 2017 and 2016, respectively. There was no change to the reported net income or income per share, basic and diluted, as previously reported as a result of this immaterial correction. Management has evaluated the materiality of these corrections on its previously filed financial statements from a quantitative and qualitative perspective, and has concluded that these corrections were not material to the prior years as previously reported and the quarterly periods within those years. 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. Such amount has been reflected as a distribution to the members in the consolidated statements of changes in shareholders' equity. The entity operated a registered investment advisory business with assets held under management of approximately $425 million at the time of merger. 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. The respective adjustments made to include the results of Quantum Fund, LLC in these consolidated financial statements increased total shareholders’ equity and other assets at December 31, 2016 by approximately $2,000 and decreased net income for the year ended December 31, 2016 by approximately $1,200.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 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 in conformity with 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 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. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that 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 its 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 readily available, the Bank uses present value techniques and other valuation methods, as disclosed in Note 14, 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.

Investments 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.

Cash and Due From Banks

For the purposes of the accompanying consolidated statements of cash flows, cash includes cash and time deposits, and other deposits held with other banks with original maturities of three months or less. Cash on hand or on deposit with the Federal Reserve at December 31, 2018 and 2017 of $26,791 and $23,113, respectively, was required to be held to meet certain regulatory reserve and clearing requirements.

The Company presents the cash flows from customer loans, deposit transactions and short‑term borrowings on a net basis in its consolidated statements of cash flows.

Interest-bearing Deposits with Other Banks

Interest-bearing deposits with other banks, consisting of certificates of deposit, have maturities greater than three months and are carried at cost. Each certificate of deposit is below the FDIC insurance limit of $250. Interest income is recorded when earned.

Concentration of Credit Risk

The loan portfolio consists primarily of residential real estate loans which are collateralized by real estate. At December 31, 2018 and 2017, residential real estate loans accounted for 84% and 82%, respectively, 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 December 31, 2018 and 2017, approximately 94% and 95%, respectively, of the loan portfolio was originated in California.

Investment Securities

Investment securities includes 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 debt 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 tax. 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 (noncallable) and accretion of discounts over the contractual life of the investment security using the effective interest method or, in the case of asset‑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 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 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 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 income.

Management performs a qualitative assessment each reporting period to identify impairment of equity securities without readily determinable fair values. When a qualitative assessment indicates that an impairment exists, Management determines the fair value of the investment and if the fair value is less than the investment's carrying value, an impairment charge is recorded equal to the difference between the fair value and the carrying amount of the investment in income.

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 (loss), net of tax. A decline in value of an equity security that was considered other than temporary was recorded in income.

Mortgage Loans Held for Sale

Residential real estate loans originated or purchased and intended for sale in the secondary market are carried at the lower of amortized cost or fair value on an individual loan basis as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to income in the consolidated statements of income. Residential real estate loans originated as held for investment are periodically sold generally with servicing retained in order to manage liquidity, interest rate or concentration risk. Loans that are transferred into loans held for sale from loans held for investment, due to a change in intent, are recorded at the lower of amortized cost or fair value.

When loans originally classified as held for sale or as held for investment are reclassified due to a change in intent or ability to hold, cash flows associated with the loans are classified in the consolidated statements of cash flows as operating or investing, as appropriate, in accordance with the initial classification of the loans.

Residential real estate loans held for sale are generally sold with servicing rights retained. Upon the sale of an originated loan, the mortgage servicing right asset is established and recorded at its estimated fair value, and a corresponding gain is recognized in gain on sale of mortgage loans held for sale or gain on sale of portfolio loans. Gains and losses on sales of residential real estate loans are based on the difference between the selling price and the carrying value of the related loans sold.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the principal balance outstanding, net of unearned income, including unamortized loan fees and costs on originated loans, and allowances for loan losses. Loan origination fees, net of certain direct loan origination costs, are deferred and amortized over the contractual lives of the respective loans as a yield adjustment using the effective interest method. Other credit-related fees are recognized as fee income, as a component of noninterest income.

Interest income on loans is accrued as earned using the interest method over the term of the loan. The accrual of interest income is discontinued at the time the loan is 90 days past due or earlier if conditions warrant (i.e. nonaccrual loan), unless the loan is secured and in the process of collection. In all cases, loans are placed on nonaccrual status at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed on nonaccrual status, interest accrued and unpaid during prior periods is reversed. Any payments on nonaccrual loans are applied first to outstanding loan principal amounts and then to the recovery of the charged off loan amounts. Any excess is treated as a recovery of interest and fees. Loans are returned to accrual status after all principal and interest amounts contractually due are made and future payments are reasonably assured.

A loan is considered impaired when, based on current information and events, it is probable that Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings, as defined below, and classified as impaired.

Factors considered by management in determining if a loan is impaired include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case‑by‑case basis, taking into consideration all circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

Construction loans, commercial real estate loans and commercial lines of credit are individually evaluated for impairment. If a loan is impaired, a portion of the allowance for loan losses is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral or operations of collateral. Large groups of smaller balance homogeneous loans, such as other consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures.

Troubled Debt Restructurings

The Bank periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and minimize risk of loss. Loans which have been modified resulting in a concession, and where the borrower is experiencing financial difficulties, are considered troubled debt restructurings. To determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed as part of the credit underwriting process.

Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For loans that are considered troubled debt restructurings that subsequently go into default, the Company determines the amount of the allowance for loan losses in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired.

Allowance for Loan Losses

The allowance for loan losses is a valuation allowance for probable incurred credit losses, increased or decreased by the provision for loan losses and decreased by charge offs less recoveries. Loan losses are charged against the allowance for loan losses when a loan is considered partially or fully uncollectible, or has such little value that continuance as an asset is not warranted. Subsequent recoveries, if any, are credited to the allowance for loan losses. Management estimates the allowance for loan losses balance using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance for loan losses may be made for specific loans, but the entire allowance for loan losses is available for any loan that, in management’s judgment, should be charged off.

The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers all other loans and is based on historical loss experience adjusted for general economic conditions and other qualitative factors by portfolio segment. The historical loss experience is determined by portfolio segment, discussed below, and is based on the actual loss history experienced over the most recent three-year period. This actual loss experience is supplemented with economic and other factors based on the risks present for each portfolio segment. These economic and other risk factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge offs and recoveries; trends in portfolio volume; effects of any changes in underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.

The following portfolio segments have been identified:

A)Construction Loans—The construction loan portfolio is comprised of loans to builders and developers primarily for residential, commercial and mixed‑use development. In addition to general commercial real estate risks, construction loans have additional risk of cost overruns, market deterioration during construction, lack of permanent financing and no operating history. There is no further segmentation of the construction portfolio segment into classes.

B)Residential Real Estate—The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. The classes in the residential real estate portfolio segment consist of residential first mortgages and residential second mortgages.

C)Commercial Real Estate—Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for the properties to produce sufficient cash flow to service debt obligations. The segmentation classes in the commercial real estate portfolio consist of retail, multifamily, offices, hotels/single-room occupancy hotels ("SROs"), industrial and other.

D)Commercial Lines of Credit—The commercial lines of credit portfolio is comprised of loans to businesses such as sole proprietorships, partnerships, limited liability companies and corporations for the daily operating needs of the business. The risk characteristics of these loans vary based on the borrowers’ business and industry as repayment is typically dependent on cash flows generated from the underlying business. These loans may be secured by real estate or other assets or may be unsecured. The segmentation classes in the commercial lines of credit portfolio consist of private banking loans and commercial & industrial (“C&I”) lending.

E)Other Consumer—The consumer loan portfolio currently consists only of overdraft protection lines with no further segmentation into classes. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate the borrowers’ capacity to repay their obligations may be deteriorating.

Mortgage Servicing Rights, net

Servicing assets (i.e. mortgage servicing rights) are recognized separately when residential real estate loans are sold with servicing rights retained by the Bank. Mortgage servicing rights are initially recorded at fair value, which is determined based on an internal valuation model that calculates the present value of estimated future net servicing income. The servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into non-interest income in the consolidated statements of income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recognized as income when earned. The Bank also records late fees and ancillary fees related to loan servicing which were not material for the periods presented.

On a quarterly basis, servicing assets are evaluated for impairment based upon the fair value of the mortgage servicing rights as compared to its carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type, and investor type. If the carrying amount of an individual grouping exceeds fair value, impairment is recorded on that grouping so that the servicing asset is carried at fair value. Impairment is recognized through a valuation allowance for an individual grouping. If it is later determined that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance may be recorded as an increase to income. The fair values of servicing assets are subject to significant fluctuations due to changes in estimated and actual prepayment speeds and default rates and losses.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

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 FHLB 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 and restricted stock in the consolidated statements of income. Cash dividends received amounted to $1,149, $815 and $730 for the year ended December 31, 2018, 2017 and 2016, respectively.

Cash Surrender Value of Bank‑Owned Life Insurance

The Bank has purchased life insurance policies on certain officers and employees; in addition, the Bank still owns policies on retired and former employees. Cash surrender value of bank‑owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Long‑Lived Assets

Long‑lived assets, such as leasehold improvements and equipment, and definite‑lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require long‑lived assets or asset groups to be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long‑lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, such as discounted cash flow models and third‑party independent appraisals.

Definite‑lived intangible assets, consisting of customer‑related intangibles, are amortized on a straight‑line basis over their estimated useful lives of ten years. At December 31, 2018 and 2017, customer‑related intangibles totaled $4,500, less accumulated amortization of $4,050, and $3,600, respectively. Amortization expense related to the customer‑related intangibles was $450 for the years ended December 31, 2018, 2017 and 2016. Remaining future annual amortization is $450 for the year 2019.

Revenue from Contracts with Customers (effective January 1, 2018)

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 performance 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 at adoption. 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, which are not within the scope of ASC 606 and are instead 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 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 deposit accounts are withdrawn from the customer's account balance.

Investment management and advisory fees: The Bank enters into contracts with certain customers to provide asset management services that will continue indefinitely unless terminated in writing by either party to the contract. 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 non-interest income, other 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 sources of non-interest income for the year ended December 31, 2018, 2017 and 2016 that are within the scope of ASC 606:


	Year Ended December 31,
	2018		2017		2016
Non-Interest Income:
Service charges on deposit accounts*	$	230	$	175	$	67
Investment management and advisory fees		2,035		2,338		3,209
Interchange fees*		109		117		97
Other service charges and fees*		48		31		105
Not within the scope of ASC 606		19,615		11,847		10,750
Total non-interest income	$	22,037	$	14,508	$	14,228

* Included in service charges and fees in the 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 December 31, 2018, the Bank had a contract asset balance of $29, which was recorded in other assets in the 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.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on debt securities available for sale, net of income taxes, which is also recognized as a separate component of shareholders’ equity. The Company releases the income tax effects on unrealized gains and losses on debt securities available for sale that are reported in other comprehensive income (loss) on a security‑by‑security basis when debt securities are sold.

In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018‑02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to address certain tax rate changes that affect deferred taxes originally recorded in other comprehensive income (loss) related to the Tax Cuts and Jobs Act (H.R.1) (“Tax Act”). This guidance is effective for fiscal years beginning after December 15, 2018, with early application permitted in periods where financial statements have not been issued. The guidance gives entities the option to reclassify the stranded tax effects resulting from the tax law and tax rate changes under the Tax Act from accumulated other comprehensive income (loss) to retained earnings.

The Company early adopted the guidance in 2017. The Company has elected to reclassify, to retained earnings in the consolidated statements of changes in shareholders’ equity, the stranded tax effect, which includes the effect of the change in the newly enacted federal corporate tax rate of 21% and the historical tax rate, from accumulated other comprehensive income (loss). The reclassification from accumulated other comprehensive loss to retained earnings amounted to $28 as shown in the consolidated statements of changes in shareholders’ equity.

Loan Commitments and Related Financial Instruments

Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Assets Held under Administration and Investment Management and Advisory Fees

The Company does not include assets held in fiduciary or agency capacities in the consolidated balance sheets as such assets held under administration are not assets of the Company. Fees from asset management activities are recorded on an accrual basis over the period in which the service is provided. Fees, as set forth in the underlying customer contract, are a function of the market value of assets administrated and managed.

Income Taxes

Income taxes are provided for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period the change occurs. Deferred tax assets are reduced, through a valuation allowance, if necessary, by the amount of such benefits that are not expected to be realized based on current available evidence.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

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 potential dilutive common shares.

Recently Issued Accounting Guidance

In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements as follows: (1) removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the reporting entity's policy for timing of transfers between levels; (2) removes the requirement to disclose the valuation processes for Level 3 fair value measurements; (3) clarifies that the measurement uncertainty disclosure for recurring Level 3 fair value measurements is to communicate information about the uncertainty in measurement as of the reporting date; (4) requires disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (5) requires disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU No. 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. An entity is permitted to early adopt the provisions that remove or modify disclosures upon issuance of this ASU and delay adoption of the additional disclosures until the effective date. The Company is currently evaluating the impact adoption will have on its current fair value measurement disclosures.

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 has formed a cross-functional implementation team consisting of individuals from credit, finance and information systems. A project plan and timeline has been developed and the implementation team has evaluated the Company’s existing credit models to assess its appropriateness for the new requirements. The implementation team has also engaged a software vendor to assist in implementing required changes to credit loss estimation models and processes, and continues to collect historical data to be used in the credit loss models. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which provides corrections or clarification on narrow aspects of Topic 842. Also, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provides entities with another transition method for adopting the new leasing guidance. As originally issued, ASC 842 requires entities to use a modified retrospective transition approach to apply the new guidance as of the beginning of the earliest period presented in the financial statements in the period adopted. The optional transition method allows entities to apply the new guidance at the adoption date by recording a cumulative-effect adjustment to the opening balance of retained earnings, and not to restate the comparative periods presented. 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 has adopted the new lease accounting guidance in the first quarter of 2019. As of January 1, 2019, the Company recorded $21.8 million of net right‑of‑use assets and $22.7 million of lease liabilities on the consolidated balance sheet primarily related to its real estate operating leases using the optional transition method. The Company elected to apply the package of practical expedients upon transition, which includes no reassessment of whether existing contracts are or contain leases as well as the lease classification for existing leases was retained. The new guidance will not have a significant impact on the timing or measurement of the Company's lease expense.

Investment Securities

12 Months Ended

Dec. 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 December 31, 2018 and 2017 and the corresponding amounts of gross unrealized gains and losses:


	December 31, 2018
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury securities	$	142,905	$	9	$	(56)	$	142,858
Collateralized mortgage obligations		1,554		46		—		1,600
Collateralized debt obligations		308		—		(11)		297
Total	$	144,767	$	55	$	(67)	$	144,755


	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

No securities of any single issuer, other than debt securities issued by the U.S. government, government agency and government-sponsored enterprises, were in excess of 10% of total shareholders' equity as of December 31, 2018 and 2017.

Information pertaining to sales of debt securities available for sale for the year ended December 31, 2018, 2017 and 2016 is as follows:


	2018		2017		2016
Proceeds	$	14,964	$	96,432	$	596

Gross realized gains	$	89	$	162	$	—
Gross realized losses		(3)		(43)		(898)
Total net realized gains (losses)	$	86	$	119	$	(898)

The income tax expense (benefit) related to the net realized gains and losses was $18, $41 and $(314) for the year ended December 31, 2018, 2017 and 2016, respectively.

The amortized cost and fair value of debt securities available for sale issued by U.S. Treasury at December 31, 2018 are shown by contractual maturity. Collateralized mortgage obligations 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		Fair
	Cost		Value
U.S. Treasury securities
Due less than one year	$	142,905	$	142,858
Collateralized mortgage obligations		1,554		1,600
Collateralized debt obligations		308		297
Total	$	144,767	$	144,755

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


	December 31, 2018
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury securities	$	113,219	$	(56)	$	—	$	—	$	113,219	$	(56)
Collateralized debt obligations		—		—		297		(11)		297		(11)
Total	$	113,219	$	(56)	$	297	$	(11)	$	113,516	$	(67)


	December 31, 2017
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		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)

As of December 31, 2018, the debt securities portfolio consisted of 9 debt securities, with 6 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.

A collateralized debt obligation with a carrying value of $297 and $571 at December 31, 2018 and 2017, respectively, 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. Management 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 $11 and $35 of the unrealized losses reported at December 31, 2018 and 2017, respectively.

Another collateralized debt obligation had other-than-temporary impairments recognized in prior years before it was sold during 2016. The table below presents a rollforward of the cumulative credit losses taken on this collateralized debt obligation that were recognized in the consolidated statements of income for the year ended December 31:


	2018		2017		2016
Beginning balance, January 1,	$	—	$	—	$	2,507
Reduction for previous credit losses realized on securities sold during the year		—		—		(2,507)
Ending balance, December 31,	$	—	$	—	$	—

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 December 31, 2018 and 2017, equity securities totaled $4,141 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 (loss), 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 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 (loss). 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 loss. 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 December 31, 2018 and 2017, equity securities with readily determinable fair values were $3,895 and $3,981, respectively. The following is a summary of unrealized and realized gains and losses recognized in the consolidated statements of income during the year ended December 31, 2018:



	Year Ended
	December 31, 2018
Net losses recorded during the year on equity securities	$	87
Less: net losses recorded during the period on equity securities sold during the year		—
Unrealized losses recorded during the year on equity securities held at the reporting date	$	87

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

Loans

12 Months Ended

Dec. 31, 2018

Loans

Loans

Note 4—Loans

Major categories of loans were as follows:


	December 31,
	2018		2017
Construction loans	$	176,605	$	192,319
Residential real estate loans		2,452,441		2,132,641
Commercial real estate loans		250,955		247,076
Commercial and industrial loans, lines of credit		37,776		40,749
Other consumer loans		26		29
Total loans		2,917,803		2,612,814
Less: allowance for loan losses		(21,850)		(18,457)
Loans, net	$	2,895,953	$	2,594,357

The amounts above are presented net of deferred loan origination fees and costs of $1,224 and $2,561 as of December 31, 2018 and 2017, respectively. Loans with carrying values of $899 million and $968 million were pledged as collateral on FHLB borrowings at December 31, 2018 and 2017, respectively.

The table presents the activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2018, 2017 and 2016:


							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2018	Construction		Real Estate		Real Estate		Credit		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		1,040		1,533		398		589		—		(331)		3,229
Charge offs		—		(4)		—		—		—		—		(4)
Recoveries		15		18		135		—		—		—		168
Total ending balance	$	3,273	$	13,826	$	2,573	$	1,058	$	1	$	1,119	$	21,850

							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2017	Construction		Real Estate		Real Estate		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	679	$	11,863	$	915	$	373	$	2	$	990	$	14,822
Provision for loan losses		1,432		174		556		96		(18)		460		2,700
Charge offs		—		(19)		—		—		—		—		(19)
Recoveries		107		261		569		—		17		—		954
Total ending balance	$	2,218	$	12,279	$	2,040	$	469	$	1	$	1,450	$	18,457

							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2016	Construction		Real Estate		Real Estate		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	317	$	8,192	$	1,530	$	392	$	2	$	551	$	10,984
Provision for loan losses		52		3,578		(2,768)		(19)		(2)		439		1,280
Charge offs		—		(24)		—		—		—		—		(24)
Recoveries		310		117		2,153		—		2		—		2,582
Total ending balance	$	679	$	11,863	$	915	$	373	$	2	$	990	$	14,822

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 December 31, 2018 and 2017:


							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2018	Construction		Real Estate		Real Estate		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	78	$	46	$	30	$	195	$	—	$	—	$	349
Collectively evaluated for impairment		3,195		13,780		2,543		863		1		1,119		21,501
Total ending allowance balance	$	3,273	$	13,826	$	2,573	$	1,058	$	1	$	1,119	$	21,850
Loans:
Loans individually evaluated for impairment	$	7,412	$	228	$	3,779	$	416	$	—	$	—	$	11,835
Loans collectively evaluated for impairment		169,193		2,452,213		247,176		37,360		26		—		2,905,968
Total ending loans balance	$	176,605	$	2,452,441	$	250,955	$	37,776	$	26	$	—	$	2,917,803


							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2017	Construction		Real Estate		Real Estate		Credit		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 December 31, 2018						Year Ended December 31, 2018
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Construction	$	4,751	$	4,751	$	—	$	3,563	$	301	$	230
Commercial real estate:
Retail		1,370		1,174		—		1,210		64		58
Multifamily		1,088		1,083		—		812		37		33
Subtotal		7,209		7,008		—		5,585		402		321
With an allowance for loan losses recorded:
Residential real estate, first mortgage		254		228		46		148		5		4
Construction		2,661		2,661		78		1,996		163		144
Commercial real estate, offices		1,530		1,522		30		1,538		88		80
Commercial lines of credit:
Private banking		316		316		95		330		19		16
C&I lending		100		100		100		75		5		4
Subtotal		4,861		4,827		349		4,087		280		248
Total	$	12,070	$	11,835	$	349	$	9,672	$	682	$	569


	At December 31, 2017						Year Ended December 31, 2017
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Commercial real estate, retail	$	1,431	$	1,247	$	—	$	1,281	$	75	$	75
Commercial lines of credit, private banking		147		147		—		150		8		8
Subtotal		1,578		1,394		—		1,431		83		83
With an allowance for loan losses recorded:
Residential real estate, first mortgage		122		122		37		121		6		8
Commercial real estate, offices		1,567		1,557		19		1,573		80		79
Commercial lines of credit, private banking		196		196		98		206		14		14
Subtotal		1,885		1,875		154		1,900		100		101
Total	$	3,463	$	3,269	$	154	$	3,331	$	183	$	184


	At December 31, 2016						Year Ended December 31, 2016
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Commercial real estate:
Retail	$	1,491	$	1,316	$	—	$	1,347	$	69	$	64
Other		476		39		—		67		—		—
Commercial lines of credit, private banking		154		154		—		157		6		5
Subtotal		2,121		1,509		—		1,571		75		69
With an allowance for loan losses recorded:
Residential real estate, first mortgage		72		72		21		73		3		3
Commercial real estate, offices		1,606		1,595		61		1,610		73		67
Commercial lines of credit, private banking		215		215		107		223		19		18
Subtotal		1,893		1,882		189		1,906		95		88
Total	$	4,014	$	3,391	$	189	$	3,477	$	170	$	157

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 December 31, 2018 and 2017:


	2018				2017
			Loans Past				Loans Past
			Due Over 90				Due Over 90
			Days Still				Days Still
	Nonaccrual		Accruing		Nonaccrual		Accruing
Residential real estate:
Residential first mortgage	$	4,360	$	80	$	573	$	131
Commercial real estate:
Retail		60		—		79		—
Total	$	4,420	$	80	$	652	$	131

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


	30 ‑ 59		60 ‑ 89		Greater than
	Days		Days		89 Days		Total		Loans Not
December 31, 2018	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Construction	$	1,971	$	—	$	—	$	1,971	$	174,634	$	176,605
Residential real estate:
Residential first mortgage		3,110		1,257		4,440		8,807		2,421,190		2,429,997
Residential second mortgage		377		295		—		672		21,772		22,444
Commercial real estate:
Retail		—		—		60		60		9,957		10,017
Multifamily		—		—		—		—		64,638		64,638
Offices		—		—		—		—		27,670		27,670
Hotel/SROs		—		—		—		—		101,414		101,414
Industrial		—		—		—		—		14,756		14,756
Other		—		—		—		—		32,460		32,460
Commercial lines of credit:
Private banking		176		—		—		176		15,762		15,938
C&I lending		—		—		—		—		21,838		21,838
Other consumer loans		—		—		—		—		26		26
Total	$	5,634	$	1,552	$	4,500	$	11,686	$	2,906,117	$	2,917,803


	30 ‑ 59		60 ‑ 89		Greater than
	Days		Days		89 Days		Total		Loans Not
December 31, 2017	Past Due		Past Due		Past Due		Past Due		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
Multifamily		—		—		—		—		59,582		59,582
Offices		—		—		—		—		26,571		26,571
Hotel/SROs		—		—		—		—		103,195		103,195
Industrial		—		—		—		—		15,907		15,907
Other		—		—		—		—		31,212		31,212
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 other consumer loan portfolio segments, 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 December 31, 2018 and 2017, the balance of outstanding loans identified as troubled debt restructurings was $5,826 and $3,073, respectively. The allowance for loan losses was $261 and $56 on these loans at December 31, 2018 and 2017, respectively. There were no loans identified as troubled debt restructurings that subsequently defaulted.

During the year ended December 31, 2018, the terms of a construction loan and a commercial and industrial loan were modified by providing for an extension of the maturity dates at the contract’s existing rate of interest, which is lower than the current market rate for new debt with similar risk. The total outstanding recorded investments was $2,761 at the time of modification. The modification of a residential real estate loan performed during the year ended December 31, 2018 included a confirmed Chapter 13 repayment plan. The outstanding recorded investments was $109 at the time of modification. These modifications did not result in an increase of the allowance for loan losses or charge offs. During the year ended December 31, 2017, a residential mortgage loan was modified by providing for an extension of the amortization period. The Bank had commitments to lend an additional $477 to these customers as of December 31, 2018.

The terms of certain other loans have been modified during 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 significant 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 other 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 fcapacity 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 December 31, 2018 and 2017, the risk rating of loans by class of loans was as follows:


			Special
December 31, 2018	Pass		Mention		Substandard		Doubtful		Total
Construction	$	158,489	$	8,733	$	9,383	$	—	$	176,605
Residential real estate:
Residential first mortgage		2,425,584		—		4,193		220		2,429,997
Residential second mortgage		22,444		—		—		—		22,444
Commercial real estate:
Retail		8,843		—		1,174		—		10,017
Multifamily		63,555		—		1,083		—		64,638
Offices		27,670		—		—		—		27,670
Hotel/SROs		101,414		—		—		—		101,414
Industrial		14,756		—		—		—		14,756
Other		31,451		—		1,009		—		32,460
Commercial lines of credit:
Private banking		15,762		—		176		—		15,938
C&I lending		17,785		—		4,053		—		21,838
Other consumer loans		26		—		—		—		26
Total	$	2,887,779	$	8,733	$	21,071	$	220	$	2,917,803


			Special
December 31, 2017	Pass		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
Multifamily		58,472		1,110		—		—		59,582
Offices		26,571		—		—		—		26,571
Hotel/SROs		103,195		—		—		—		103,195
Industrial		15,907		—		—		—		15,907
Other		25,808		4,733		671		—		31,212
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 year ended December 31, 2018, 2017 and 2016, the Bank sold pools of residential real estate mortgages for $475.6 million, $308.4 million and $287.4 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 $16.4 million, $10.1 million and $8.0 million for the year ended December 31, 2018, 2017 and 2016, respectively. After the sales, the Bank’s only continuing involvement in the transferred assets is to act as servicer or subservicer of the mortgages.

Leasehold Improvements and Equipment, net

12 Months Ended

Dec. 31, 2018

Leasehold Improvements and Equipment, net

Leasehold Improvements and Equipment, net

Note 5—Leasehold Improvements and Equipment, net

Leasehold improvements and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are determined using the straight-line method. Leasehold improvements and equipment at December 31, 2018 and 2017, are as follows:


	Estimated
	Useful
	Life
	(in years)	2018		2017
Leasehold improvements	*	$	10,315	$	8,290
Furniture and equipment	3 ‑ 7		13,256		11,436
Total			23,571		19,726
Less: accumulated depreciation and amortization			(14,082)		(12,683)
Leasehold improvements and equipment, net		$	9,489	$	7,043

* Amortized over the shorter of the lease term or estimated useful life

The amount charged to occupancy and equipment in the consolidated statements of income for depreciation and amortization was $1,399, $1,191 and $1,058 for the year ended December 31, 2018, 2017 and 2016, respectively.

Mortgage Servicing Rights, net

12 Months Ended

Dec. 31, 2018

Mortgage Servicing Rights, net

Mortgage Servicing Rights, net

Note 6—Mortgage Servicing Rights, net

The Bank records servicing assets from the sale of residential real estate 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 December 31, 2018 and 2017 are as follows:


	2018		2017
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	85,364	$	73,039
FHLB		92,229		92,697
Private investors		713,095		442,984

Custodial escrow balances maintained with these serviced loans were $13,593 and $11,944 at December 31, 2018 and 2017, respectively.

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


	2018		2017		2016
Mortgage servicing rights:
Beginning of year	$	6,706	$	4,454	$	1,371
Additions		6,052		3,689		3,766
Amortization		(2,025)		(1,437)		(683)
End of year		10,733		6,706		4,454
Valuation allowance at beginning of year		210		40		98
Additions (recoveries)		(110)		170		(58)
Valuation allowance at end of year		100		210		40
Mortgage servicing rights, net	$	10,633	$	6,496	$	4,414

Servicing fee income, net of amortization of servicing rights and changes in the valuation allowance, was $1,381, $407 and $490 for the year ended December 31, 2018, 2017 and 2016, respectively, and were included in other non-interest income in the consolidated statements of income.

The fair value of mortgage servicing rights was $11,523 and $7,086 at December 31, 2018 and 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 December 31, 2018 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds ranging from 6.8% to 33.6%, 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%.

At December 31, 2018, the carrying amount of certain individual groupings exceeded their fair values. See Note 14.

Deposits

12 Months Ended

Dec. 31, 2018

Deposits

Deposits

Note 7—Deposits

Time deposits, included in interest-bearing deposits, were $894,279 and $663,472 at December 31, 2018 and 2017, respectively. Time deposits includes brokered deposits of $33,750 and $156,084 at December 31, 2018 and 2017, respectively.

Time deposits that meet or exceed the FDIC insurance limit of $250 were $208,888 and $129,101 at December 31, 2018 and 2017, respectively.

At December 31, 2018, the scheduled maturities of time deposits, including brokered deposits, were as follows:


2019	$	473,900
2020		294,601
2021		117,995
2022		6,244
2023		1,539
	$	894,279

Federal Home Loan Bank Borrowings

12 Months Ended

Dec. 31, 2018

Federal Home Loan Bank Borrowings

Federal Home Loan Bank Borrowings

Note 8—Federal Home Loan Bank Borrowings

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


	2018		Interest Rates	2017		Interest Rates
Short-term fixed rate advances	$	103,000	2.60%	$	148,000	1.47% - 1.56%
Long-term fixed rate advances		190,000	0.98% - 1.18%		190,000	0.98% - 1.18%
Total FHLB advances	$	293,000		$	338,000

FHLB Advances

The long-term fixed rate advances have maturity dates ranging from July 2019 to October 2026. Interest on these advances is payable monthly and each advance is payable at its maturity date, and may contain a prepayment penalty if paid before maturity. At December 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 December 31, 2018, the Bank had additional borrowing capacity of $325 million from the FHLB.

The contractual annual maturities of FHLB advances at December 31, 2018 are as follows:


2019	$	114,000
2020		11,000
2021		11,000
2022		—
2023		—
Thereafter		157,000
	$	293,000

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 year ended December 31, 2018 and 2017 was $4,133 and $8,338, respectively. At December 31, 2018 and 2017, there were no outstanding borrowings under this agreement. Borrowings accrue interest based on a variable rate based on the FHLB’s overnight cost of funds rate, which was 2.87% and 1.67% at December 31, 2018 and 2017, respectively. The agreement has a one-year term and terminates in October 2019.

The FHLB advances and the overdraft line of credit are collateralized by pledged loans totaling $899 million at December 31, 2018.

Other Borrowings

The Company had available credit lines with other banks totaling $70 million and $60 million at December 31, 2018 and 2017, respectively. There were no amounts outstanding under these credit lines during the year ended December 31, 2018 and 2017.

Subordinated Notes, net

12 Months Ended

Dec. 31, 2018

Subordinated Notes, net

Subordinated Notes, net

Note 9—Subordinated Notes, net

The subordinated notes were as follows:


	December 31,
	2018		2017
7.0% fixed to floating rate subordinated notes	$	65,000	$	65,000
Unamortized note premium		533		588
Unamortized debt issuance costs		(504)		(699)
Total	$	65,029	$	64,889

In 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.

In 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 sold 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 2017 and 2016, the Company contributed cash proceeds received from the issuance of the Notes of $22 million and $33 million, respectively, to the Bank as capital to support its growth.

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 $4,689, $4,070 and $1,978 for the years ended December 31, 2018, 2017 and 2016, 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 that (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 in Note 18, Regulatory Capital Requirements.

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Dec. 31, 2018
Shareholders' Equity
Shareholders' Equity	Note 10—Shareholders’ Equity Capital Stock In October 2017, the Company amended its articles of incorporation to change its authorized shares to one class of no par, common stock, consisting of 500,000,000 shares, and increased the authorized shares of preferred stock from 1,000,000 to 10,000,000. Prior to this amendment, the Company’s authorized capital stock consisted of (i) 490,000,000 shares of voting common stock, no par value, and 10,000,000 shares of non‑voting common stock, no par value, and (ii) 1,000,000 authorized shares of preferred stock (200,000 shares designated as Series A Cumulative Redeemable Preferred Shares). No Par, Common Stock 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. All of the then outstanding shares of non-voting common stock, consisting of 5,072,000 shares, were exchanged, at fair value, for 5,072,000 shares of unregistered shares of voting common stock. The Company continues to use the offering proceeds to support the Bank's current growth, and also plans to use the proceeds for its future growth initiatives or selected acquisition activity. Holders of voting common stock are entitled to one vote per share on all matters submitted to shareholders and entitled to dividends at the sole direction of the board of directors. Dividends declared per common share were $0.04, $0.21 and $0.19 and dividends paid on common stock were $2,119, $9,635 and $8,567 for the years ended December 31, 2018, 2017 and 2016, respectively. The holders have no preemptive, conversion or subscription rights, and there is no redemption or sinking fund provisions with respect to such shares. Common stock is subordinate to the series preferred stock as described below with respect to dividend rights or rights upon liquidation, winding up, and dissolution of the Company. Holders of nonvoting common stock had equal and identical rights, preferences and limitations, as holders of voting common stock. The non‑voting common stock did not have any voting rights. Preferred Stock The shares of preferred stock may be divided into and issued in one or more series. The board of directors is authorized to issue preferred stock from time to time in one or more series, with such designations and such relative voting, dividend, liquidation and other rights, preferences and limitations as may be adopted by the board of directors. No shares of preferred stock are currently issued or outstanding.

Stock-based Compensation

12 Months Ended

Dec. 31, 2018

Stock-based Compensation

Stock-based Compensation

Note 11—Stock‑based Compensation

The board of directors established a 2017 Omnibus Equity Incentive Plan (“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 was 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		23.70	%
Dividend yield		.29	%

A summary of the Company's stock option activity as of and for the year ended December 31, 2018 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Options	Price		Term	Value
				(Years)
Outstanding at January 1, 2018	—	$	—	—	$	—
Granted	92,625		13.73
Exercised	—		—
Forfeited/expired	—		—
Outstanding at December 31, 2018	92,625	$	13.73	9.22	$	—

The Company recorded share-based compensation expense associated with stock options of $82 for the year ended December 31, 2018. At December 31, 2018, there was $340 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The unrecognized compensation cost related to nonvested stock options is expected to be recognized over a weighted-average period of 3.22 years. No options are exercisable at December 31, 2018.

Restricted Stock Awards

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. On July 17, 2018, the board of directors approved an additional issuance of 9,320 restricted stock awards to non-employee directors that vest on the first anniversary of the grant date. 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. The weighted average grant-date fair value of the restricted stock awards is $13.55. 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 $215 for the year ended December 31, 2018. At December 31, 2018, there was $449 of total unrecognized compensation cost related to the nonvested stock granted under the Plan. The unrecognized compensation cost related to nonvested restricted stock awards is expected to be recognized over a weighted-average period of 2.68 years.

Income Per Share

12 Months Ended

Dec. 31, 2018

Income Per Share

Income Per Share

Note 12- 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. The following table presents the computation of income per share, basic and diluted:


	Year Ended
	December 31,
	2018		2017		2016
Numerator:
Net income	$	63,468	$	37,977	$	33,234

Denominator:
Weighted average common shares outstanding, basic		52,963,308		46,219,367		45,271,000
Weighted average effect of potentially dilutive common shares:
Stock options		—		—		—
Restricted stock		2,259		—		—
Weighted average common shares outstanding, diluted		52,965,567		46,219,367		45,271,000

Income per share:
Basic	$	1.20	$	0.82	$	0.73
Diluted	$	1.20	$	0.82	$	0.73

The effect of 92,625 options to purchase shares of common stock were excluded in computing diluted income per common share for the year ended December 31, 2018, as the inclusion would be antidilutive.

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 year ended December 31, 2017 and 2016.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2018
Employee Benefit Plans
Employee Benefit Plans	Note 13—Employee Benefit Plans Defined Contribution Retirement Plan The Company has a defined contribution retirement plan that allows for annual employee contributions up to the lesser of 100% of eligible compensation or $18, which are matched equal to 100% of the first 3% of the amount contributed. Dependent on the level of the Company’s financial performance, there is a mandatory contribution, in addition to an employee match of up to 1% of the amount contributed based on a tiered scale. The Company’s contribution to the plan was $773, $661 and $432 for the year ended December 31, 2018, 2017 and 2016, respectively. Supplemental Retirement Benefit Plan An unfunded supplemental retirement benefit plan covers certain employees. The agreements are subject to various terms and conditions but generally provide covered employees with a specified retirement benefit if they retire from the Company at a normal retirement date. The agreements also provide for the payment of vested amounts upon termination. The participant can elect to receive the payout as a lump sum or as an annuity. The supplemental retirement obligation liability was $2,898 and $2,653 at December 31, 2018 and 2017, respectively. The expense, net of forfeitures, incurred for the supplemental retirement benefit plan was $273, $281 and $254 for the year ended December 31, 2018, 2017 and 2016, respectively. Benefit payments of $28, $25 and $22 were made during 2018, 2017 and 2016, respectively. Spilt Dollar Life Insurance Agreement In October 1997, the Company entered into an endorsement split‑dollar life insurance agreement with its principal shareholder and former chief executive officer. Pursuant to the plan, a portion of the death benefits arising from life insurance policies owned by the Company will be paid to beneficiaries designated by the principal shareholder and not to the Company. The estimated present value of this postretirement benefit accrued by the Company was $4,200 and $4,281 at December 31, 2018 and 2017, respectively.

Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2018

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Note 14—Fair Values of Financial Instruments

Financial instruments include assets carried at fair value, as well as certain assets and liabilities 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 following methods and significant assumptions are used to estimate fair value:

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.

Impaired Loans

The fair value of collateral dependent impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach, such as comparable sales or income approach, or a combination of both. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Appraisals for collateral-dependent impaired loans are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by us. Once received, an appraisal compliance review is completed in accordance with regulatory guidelines.

Mortgage Servicing Rights

Fair value of mortgage servicing rights is initially determined at the individual grouping level based on an internal valuation model that calculates the present value of estimated future net servicing income. On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon third party valuations obtained. As disclosed in Note 6, the valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income (Level 3).

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 December 31, 2018 and 2017:


			Fair Value Measurements at
			December 31, 2018
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury securities	$	142,858	$	142,858	$	—	$	—
Collateralized mortgage obligations		1,600		—		1,600		—
Collateralized debt obligations		297		—		—		297
Equity securities		3,895		3,895		—		—


			Fair Value Measurements at
			December 31, 2017
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(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 December 31, 2018.

There were no transfers between Level 1 and Level 2 during the year ended December 31, 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) for the year ended December 31, 2018 and 2017:


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Investment Securities
	2018				2017
	Collateralized				Collateralized
	Debt		Equity		Debt		Equity
	Obligations		Securities		Obligations		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)		24		—		(10)		—
Principal maturities/settlements		(298)		—		(4)		(283)
Sales		—		—		—		—
Transfers in and/or out of Level 3		—		—		—		—
Balance of recurring Level 3 assets at end of period	$	297	$	—	$	571	$	246

Unrealized losses on Level 3 investments for collateralized debt obligations was $11 at December 31, 2018. In addition to the amounts included in income for the year ended December 31, 2018 as presented in the table above, interest income recorded on collateralized debt obligations was $16. 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, interest income recorded on collateralized debt obligations was $21 and dividend income on equity securities was $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 December 31, 2018 and 2017:


			Valuation
	Fair Value		Technique	Unobservable Inputs
2018
Collateralized debt obligations	$	297	Discounted cash flow	Collateral default rate	0	%
				Recovery probability	0	%
2017
Collateralized debt obligations	$	571	Discounted cash flow	Collateral default rate	0	%
				Recovery probability	15	%

The significant unobservable inputs used in the fair value measurement of the 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. For assets measured at fair value on a nonrecurring basis which were still held in the consolidated balance sheet at December 31, 2018 and 2017, the following table provides the level of valuation assumptions used to determine each adjustment and the related carrying value:


	Fair Value Measurements at December 31, 2018
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Construction	$	2,583	$	—	$	—	$	2,583
Residential real estate		108		—		—		108
Mortgage servicing rights		1,858		—		—		1,858

Fair Value Measurements at December 31, 2017

Quoted Prices in

Significant

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Assets

Inputs

Fair Value

(Level 1)

(Level 2)

(Level 3)

Mortgage servicing rights

1,930

—

1,930

As discussed previously, the fair values of collateral dependent impaired loans carried at fair value are determined by third-party appraisals. Management adjusts these appraised values based on the age of the appraisal and the type of the property. The following table presents quantitative information about Level 3 fair value measurements for the financial instruments measured at fair value on a nonrecurring basis at December 31, 2018 and 2017:


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)
Impaired loans:
Construction	$	2,583	Sales comparison approach	Management discount for property type and recent market volatility	10	%
Residential real estate		108	Sales comparison approach	Management discount for property type and recent market volatility	10	%
Mortgage servicing rights		1,858	Discounted cash flow	Discount rate	9.5% - 12.0	%
				Prepayment speed	7.0% - 33.6	%
				Weighted average default rate	0.2	%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017
					Range
					(Weighted
	Fair Value		Valuation Technique	Unobservable Inputs	Average)
Mortgage servicing rights	$	1,930	Discounted cash flow	Discount rate	9.5% - 12.0	%
				Prepayment speed	7.2% - 46.2	%
				Weighted average default rate	0.1% - 0.3	%

Fair Value of Financial Instruments

With the adoption of ASU No. 2016-01, as discussed in Note 3, 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 December 31, 2018 and 2017, are as follows:


	Fair Value Measurements at December 31, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	52,526	$	52,526	$	52,526	$	—	$	—
Interest-bearing deposits with other banks		1,100		1,100		1,100		—		—
Mortgage loans held for sale		1,248		1,261		—		1,261		—
Loans, net		2,893,262		2,987,419		—		—		2,987,419

Financial Liabilities
Time deposits		894,279		890,020		—		890,020		—
Federal Home Loan Bank borrowings		293,000		285,265		—		285,265		—
Subordinated notes, net		65,029		65,650		—		65,650		—


	Fair Value Measurements at December 31, 2017
	Carrying		Fair
	Amount		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

12 Months Ended

Dec. 31, 2018

Income Taxes

Income Taxes

Note 15—Income Taxes

The components of the income tax expense are as follows:


	2018		2017		2016
Current:
Federal	$	16,435	$	22,804	$	19,131
State		7,979		6,973		5,125
Total current expense		24,414		29,777		24,256
Deferred:
Federal		478		2,835		(936)
State		212		(141)		(105)
Total deferred expense (benefit)		690		2,694		(1,041)
Total income tax expense	$	25,104	$	32,471	$	23,215

The Company has implemented the new corporate tax rate, as discussed below, as of January 1, 2018. The reconciliation of the U.S. federal statutory tax rate to the Company's effective tax rate is as follows:


	2018			2017			2016
U.S. federal statutory rate		21.0	%		35.0	%		35.0	%
Effect of:
State taxes, net of federal benefit		7.1	%		6.3	%		5.8	%
Change in tax laws		—	%		4.7	%		—	%
Loss incurred by pass-through entity		—	%		0.3	%		0.7	%
Income on cash surrender value of bank-owned life insurance		(0.2)	%		(0.3)	%		(0.4)	%
Other, net		0.4	%		0.1	%		—	%
Effective tax rate		28.3	%		46.1	%		41.1	%

The components of deferred tax assets and liabilities at December 31, 2018 and 2017 were comprised of the following:


	2018		2017
Deferred tax assets:
Allowance for loan losses	$	6,113	$	5,188
Mark-to-market adjustments on mortgage loans held for sale		3		774
Supplemental retirement benefit plan		811		746
Deferred loan fee income		342		719
State franchise tax		1,416		1,234
Compensation plans		775		225
Other		265		168
Total deferred tax assets		9,725		9,054
Deferred tax liabilities:
FHLB stock dividends		(121)		(122)
Mortgage servicing rights		(2,975)		(1,825)
Other		(507)		(260)
Total deferred tax liabilities		(3,603)		(2,207)
Deferred tax asset, net	$	6,122	$	6,847

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. Realization of deferred tax assets is dependent upon the generation of future taxable income. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. Based on its evaluation, the Company believes it is more likely than not that the deferred tax asset at December 31, 2018 and 2017, will be realized.

The Company is subject to U.S. federal income tax as well as income taxes of the state of New York and California. The Company is no longer subject to examination by the Internal Revenue Service for the years before 2015.

There were no unrecognized tax benefits at December 31, 2018, and the Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2018
Related Party Transactions
Related Party Transactions	Note 16—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 years ended December 31, 2017 and 2016, the consolidated statements of income include compensation-related expenses of $125 and $760 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 shareholders, serve as trustees of the foundation. The Company paid $900 annually to the foundation during 2018, 2017 and 2016. The Bank leases certain storage and office space from entities owned by the Company’s principal shareholders. Amounts paid under such leases totaled $62, $45 and $32 for 2018, 2017 and 2016, respectively. The Bank provides monthly data processing and programming services to entities controlled by the Company’s principal shareholders. Aggregate fees received amounted to $105, $98 and $158 during 2018, 2017 and 2016, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies

Commitments and Contingencies

Note 17—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 2019 to 2029, with certain renewal options thereafter. Rent expense was $4,401, $3,544 and $2,770 for the year ended December 31, 2018, 2017 and 2016, respectively.

At December 31, 2018, the minimum annual rental payments under noncancelable operating leases were as follows:



2019	$	4,171
2020		4,015
2021		3,387
2022		2,605
2023		2,356
Thereafter		9,479
	$	26,013

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 December 31, 2018, outstanding commitments to make loans consisted of fixed rate loans of $5,603 with interest rates ranging from 4.25% to 7.50% and maturities of 20 and 30 years and variable rate loans of $236,206 with varying interest rates (ranging from 3.875% to 7.875% at December 31, 2018) and maturities ranging from 2 to 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 may 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 December 31, 2018 and 2017:


	2018		2017
Commitments to make loans	$	241,809	$	268,401
Unused lines of credit		160,803		157,234
Standby letters of credit		70		70

Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2018

Regulatory Capital Requirements

Regulatory Capital Requirements

Note 18—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.

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				Tier 1
	Weighted				Capital to		Common
	Assets				Average		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	%

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 on 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 was required to be phased in from 0.0% for 2015 to 2.50% on January 1, 2019. As of December 31, 2018, the capital conservation buffer was 1.875%. The net unrealized gain or loss on investment securities is not included in regulatory capital. Management believes that at December 31, 2018, the Company and the Bank meet all regulatory capital requirements to which they are subject.

At December 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 December 31, 2018 and 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, with such regulatory minimums not including the capital conservation buffer, at December 31, 2018 and 2017 are as follows:


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2018
Total adjusted capital to risk-weighted assets
Consolidated	$	421,495	21.98	%	$	153,426	8.00	%		N/A	N/A
Bank		324,905	16.94			153,403	8.00		$	191,754	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		334,616	17.45			115,069	6.00			N/A	N/A
Bank		303,055	15.80			115,052	6.00			153,403	8.00
Common Tier 1 (CET1)
Consolidated		334,616	17.45			86,302	4.50			N/A	N/A
Bank		303,055	15.80			86,289	4.50			124,640	6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated		334,616	10.42			128,431	4.00			N/A	N/A
Bank		303,055	9.44			128,430	4.00			160,538	5.00


					For Capital
					Adequacy				To be Well
	Actual				Purposes				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 December 31, 2018, $174 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://fasb.org/us-gaap/role/ref/legacyRef
-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 2: http://fasb.org/us-gaap/role/ref/legacyRef
-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

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-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 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-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 6: http://fasb.org/us-gaap/role/ref/legacyRef
-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 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826

+ Details

Condensed Financial Information of Sterling Bancorp (Parent Only)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information of Sterling Bancorp (Parent Only)

Condensed Financial Information of Sterling Bancorp (Parent Only)

Note 19—Condensed Financial Information of Sterling Bancorp (Parent Only)

Financial statements of Sterling Bancorp (“Parent company”) are shown below. The Parent company has no significant operating activities.

CONDENSED BALANCE SHEETS


	December 31,
	2018		2017
ASSETS
Cash held at Bank	$	97,315	$	97,464
Investment in subsidiaries		303,496		241,273
Other assets		272		447
Total assets	$	401,083	$	339,184
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Subordinated notes, net	$	65,029	$	64,889
Other liabilities		997		997
Total liabilities		66,026		65,886
Total shareholders’ equity		335,057		273,298
Total liabilities and shareholders’ equity	$	401,083	$	339,184

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME


	Year Ended December 31,
	2018		2017		2016
Expenses:
Interest expense	$	4,689	$	4,070	$	1,978
Other		961		305		84
Total expenses		5,650		4,375		2,062
Loss before income tax and equity in subsidiaries income		(5,650)		(4,375)		(2,062)
Income tax benefit		1,186		1,513		722
Loss before equity in subsidiaries income		(4,464)		(2,862)		(1,340)
Equity in subsidiaries income		67,932		40,839		34,574
Net income	$	63,468	$	37,977	$	33,234
Other comprehensive income
Equity in other comprehensive income (loss) of subsidiaries		113		(104)		627
Total comprehensive income	$	63,581	$	37,873	$	33,861

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2018		2017		2016
Cash flows from operating activities
Net income	$	63,468	$	37,977	$	33,234
Adjustments to reconcile net income to net cash used in operating activities:
Equity in subsidiaries income		(67,932)		(40,839)		(34,574)
Other		140		131		68
Changes in operating assets and liabilities:
Change in other assets		175		275		(682)
Change in other liabilities		—		260		737
Net cash used in operating activities		(4,149)		(2,196)		(1,217)
Cash flows from investing activities
Capital contributed to subsidiary (Bank)		—		(22,000)		(33,250)
Dividends received from subsidiaries		6,119		12,635		10,067
Net cash provided by (used in) investing activities		6,119		(9,365)		(23,183)
Cash flows from financing activities
Proceeds from issuance of subordinated notes		—		15,611		50,000
Payment of debt issuance costs		—		(191)		(729)
Proceeds from issuance of shares of common stock, net of offering costs		—		85,490		—
Dividends paid to shareholders		(2,119)		(9,635)		(8,567)
Net cash provided by (used in) financing activities		(2,119)		91,275		40,704
Net increase (decrease) in cash		(149)		79,714		16,304
Cash held at Bank, beginning of year		97,464		17,750		1,446
Cash held at Bank, end of year	$	97,315	$	97,464	$	17,750
Supplemental cash flows information:
Cash paid for:
Interest	$	4,550	$	4,025	$	1,750
Income taxes		—		—		—

Dividends

The Parent received cash dividends from its subsidiaries of $6,119, $12,635 and $10,067 during the year ended December 31, 2018, and 2017 and 2016, respectively.

Summary of Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2018

Summary of Quarterly Results of Operations (Unaudited)

Summary of Quarterly Results of Operations (Unaudited)

Note 20—Summary of Quarterly Results of Operations (Unaudited)

The following is a summary of the unaudited quarterly results of operations for the year ended December 31, 2018 and 2017:


	2018
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Interest income(1)	$	37,333	$	39,541	$	41,896	$	43,001
Interest expense		8,594		9,684		11,098		12,295
Net interest income		28,739		29,857		30,798		30,706
Provision for loan losses		641		1,120		423		1,045
Non-interest income(1)		5,493		6,297		4,233		6,014
Non-interest expense		11,503		12,621		12,531		13,681
Income before income taxes		22,088		22,413		22,077		21,994
Income tax expense		6,339		6,431		6,336		5,998
Net income	$	15,749	$	15,982	$	15,741	$	15,996
Income per share, basic and diluted	$	0.30	$	0.30	$	0.30	$	0.30


	2017
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Interest income(1)	$	27,503	$	29,088	$	32,930	$	35,315
Interest expense		5,272		5,555		6,786		7,822
Net interest income		22,231		23,533		26,144		27,493
Provision for loan losses		600		600		900		600
Non-interest income(1)		5,226		1,530		5,504		2,248
Non-interest expense		9,092		9,391		10,335		11,943
Income before income taxes		17,765		15,072		20,413		17,198
Income tax expense(2)		7,349		6,134		8,321		10,667
Net income	$	10,416	$	8,938	$	12,092	$	6,531
Income per share, basic and diluted	$	0.23	$	0.20	$	0.27	$	0.13

(1)

In the second quarter of 2018, the Company corrected the classification of commitment fees, net of direct loan origination costs, earned on construction loans and other lines of credit to commercial customers in its consolidated statements of income to the financial statement caption, interest and fees on loans, which were previously reported in service charges and fees. As a result, certain prior period interest income and non-interest income amounts have been adjusted from the amounts previously reported to correct the classification error. The amount of the adjustment was a decrease to non-interest income and an increase to interest income of $360, $502, $648, $578, and $544 for the first quarter of 2017, second quarter of 2017, third quarter of 2017, fourth quarter of 2017 and the first quarter of 2018, respectively.

(2)

The fourth quarter of 2017 income tax expense includes the deferred income tax expense of $3.3 million recorded on the enactment of the Tax Cuts and Jobs Act.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2018
Subsequent Events
Subsequent Events	Note 21—Subsequent Events Stock Repurchase Program On December 24, 2018, the board of directors approved the repurchase of up to $50 million of the Company’s outstanding shares of common stock. The stock repurchase program permits the Company to acquire shares of common stock from time to time in the open market or in privately negotiated transactions. The Company received regulatory approval of the stock repurchase program on January 28, 2019. Under the stock repurchase program, the Company is not obligated to repurchase shares of its common stock, and there is no assurance that it will do so. Any shares repurchased under this program will be canceled and returned to authorized but unissued status. Subsequent to December 31, 2018, the Company repurchased and canceled 1,104,060 shares of common stock for $10,462, including commission and fees. Stock-based Compensation On March 1, 2019, the board of directors approved the issuance of options to purchase 84,891 shares of common stock with an exercise price of $10.12 to certain key employees. The options vest in installment of 50% in each of the third and fourth year after the date of a grant and have a maximum term of ten years. Also, the board of directors approved the issuance of 71,147 restricted stock awards to certain key employees. The restricted stock awards vest in installments of 50% in each of the third and fourth year after the date of grant. Sale of Mortgage Loans The Bank has identified a portfolio of residential real estate loans of approximately $49 million which we intend to sell in the first quarter of 2019.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies

Principles of Consolidation

Use of Estimates

Fair Value Measurements

Cash and Due From Banks

The Company presents the cash flows from customer loans, deposit transactions and short‑term borrowings on a net basis in its consolidated statements of cash flows.

Interest-bearing Deposits with Other Banks

Interest-bearing deposits with other banks, consisting of certificates of deposit, have maturities greater than three months and are carried at cost.

Concentration of Credit Risk

Investment Securities

Investment securities includes 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 debt securities when they are purchased.

Equity Securities

Mortgage Loans Held for Sale

Loans

Troubled Debt Restructurings

Allowance for Loan Losses

The following portfolio segments have been identified:

Mortgage Servicing Rights, net

Transfers of Financial Assets

Federal Home Loan Bank Stock

Cash Surrender Value of Bank-Owned Life Insurance

Cash Surrender Value of Bank‑Owned Life Insurance

Long-Lived Assets

Long‑Lived Assets

Revenue from Contracts with Customers

Revenue from Contracts with Customers (effective January 1, 2018)

The following table presents sources of non-interest income for the year ended December 31, 2018, 2017 and 2016 that are within the scope of ASC 606:


	Year Ended December 31,
	2018		2017		2016
Non-Interest Income:
Service charges on deposit accounts*	$	230	$	175	$	67
Investment management and advisory fees		2,035		2,338		3,209
Interchange fees*		109		117		97
Other service charges and fees*		48		31		105
Not within the scope of ASC 606		19,615		11,847		10,750
Total non-interest income	$	22,037	$	14,508	$	14,228

* Included in service charges and fees in the consolidated statements of income.

Contract Balances

Stock-based compensation

Comprehensive Income

Loan Commitments and Related Financial Instruments

Assets Held under Administration and Investment Management and Advisory Fees

Income Taxes

Income per Share, Basic and Diluted

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies

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


	Year Ended December 31,
	2018		2017		2016
Non-Interest Income:
Service charges on deposit accounts*	$	230	$	175	$	67
Investment management and advisory fees		2,035		2,338		3,209
Interchange fees*		109		117		97
Other service charges and fees*		48		31		105
Not within the scope of ASC 606		19,615		11,847		10,750
Total non-interest income	$	22,037	$	14,508	$	14,228

* Included in service charges and fees in the consolidated statements of income.

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2018

Investment Securities

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


	December 31, 2018
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury securities	$	142,905	$	9	$	(56)	$	142,858
Collateralized mortgage obligations		1,554		46		—		1,600
Collateralized debt obligations		308		—		(11)		297
Total	$	144,767	$	55	$	(67)	$	144,755


	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 information pertaining to sales of debt securities available for sale


	2018		2017		2016
Proceeds	$	14,964	$	96,432	$	596

Gross realized gains	$	89	$	162	$	—
Gross realized losses		(3)		(43)		(898)
Total net realized gains (losses)	$	86	$	119	$	(898)

Schedule of amortized cost and fair value of 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 December 31, 2018 are shown by contractual maturity.


	Amortized		Fair
	Cost		Value
U.S. Treasury securities
Due less than one year	$	142,905	$	142,858
Collateralized mortgage obligations		1,554		1,600
Collateralized debt obligations		308		297
Total	$	144,767	$	144,755

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


	December 31, 2018
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury securities	$	113,219	$	(56)	$	—	$	—	$	113,219	$	(56)
Collateralized debt obligations		—		—		297		(11)		297		(11)
Total	$	113,219	$	(56)	$	297	$	(11)	$	113,516	$	(67)


	December 31, 2017
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		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 cumulative credit losses taken on collateralized debt obligation


	2018		2017		2016
Beginning balance, January 1,	$	—	$	—	$	2,507
Reduction for previous credit losses realized on securities sold during the year		—		—		(2,507)
Ending balance, December 31,	$	—	$	—	$	—

Schedule of equity securities with readily determinable fair values



	Year Ended
	December 31, 2018
Net losses recorded during the year on equity securities	$	87
Less: net losses recorded during the period on equity securities sold during the year		—
Unrealized losses recorded during the year on equity securities held at the reporting date	$	87

Loans (Tables)

12 Months Ended

Dec. 31, 2018

Loans

Schedule of major categories of loans


	December 31,
	2018		2017
Construction loans	$	176,605	$	192,319
Residential real estate loans		2,452,441		2,132,641
Commercial real estate loans		250,955		247,076
Commercial and industrial loans, lines of credit		37,776		40,749
Other consumer loans		26		29
Total loans		2,917,803		2,612,814
Less: allowance for loan losses		(21,850)		(18,457)
Loans, net	$	2,895,953	$	2,594,357

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

The table presents the activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2018, 2017 and 2016:


							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2018	Construction		Real Estate		Real Estate		Credit		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		1,040		1,533		398		589		—		(331)		3,229
Charge offs		—		(4)		—		—		—		—		(4)
Recoveries		15		18		135		—		—		—		168
Total ending balance	$	3,273	$	13,826	$	2,573	$	1,058	$	1	$	1,119	$	21,850

							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2017	Construction		Real Estate		Real Estate		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	679	$	11,863	$	915	$	373	$	2	$	990	$	14,822
Provision for loan losses		1,432		174		556		96		(18)		460		2,700
Charge offs		—		(19)		—		—		—		—		(19)
Recoveries		107		261		569		—		17		—		954
Total ending balance	$	2,218	$	12,279	$	2,040	$	469	$	1	$	1,450	$	18,457

							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2016	Construction		Real Estate		Real Estate		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	317	$	8,192	$	1,530	$	392	$	2	$	551	$	10,984
Provision for loan losses		52		3,578		(2,768)		(19)		(2)		439		1,280
Charge offs		—		(24)		—		—		—		—		(24)
Recoveries		310		117		2,153		—		2		—		2,582
Total ending balance	$	679	$	11,863	$	915	$	373	$	2	$	990	$	14,822

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 December 31, 2018 and 2017:


							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2018	Construction		Real Estate		Real Estate		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	78	$	46	$	30	$	195	$	—	$	—	$	349
Collectively evaluated for impairment		3,195		13,780		2,543		863		1		1,119		21,501
Total ending allowance balance	$	3,273	$	13,826	$	2,573	$	1,058	$	1	$	1,119	$	21,850
Loans:
Loans individually evaluated for impairment	$	7,412	$	228	$	3,779	$	416	$	—	$	—	$	11,835
Loans collectively evaluated for impairment		169,193		2,452,213		247,176		37,360		26		—		2,905,968
Total ending loans balance	$	176,605	$	2,452,441	$	250,955	$	37,776	$	26	$	—	$	2,917,803


							Commercial
			Residential		Commercial		Lines of		Other
December 31, 2017	Construction		Real Estate		Real Estate		Credit		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 December 31, 2018						Year Ended December 31, 2018
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Construction	$	4,751	$	4,751	$	—	$	3,563	$	301	$	230
Commercial real estate:
Retail		1,370		1,174		—		1,210		64		58
Multifamily		1,088		1,083		—		812		37		33
Subtotal		7,209		7,008		—		5,585		402		321
With an allowance for loan losses recorded:
Residential real estate, first mortgage		254		228		46		148		5		4
Construction		2,661		2,661		78		1,996		163		144
Commercial real estate, offices		1,530		1,522		30		1,538		88		80
Commercial lines of credit:
Private banking		316		316		95		330		19		16
C&I lending		100		100		100		75		5		4
Subtotal		4,861		4,827		349		4,087		280		248
Total	$	12,070	$	11,835	$	349	$	9,672	$	682	$	569


	At December 31, 2017						Year Ended December 31, 2017
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Commercial real estate, retail	$	1,431	$	1,247	$	—	$	1,281	$	75	$	75
Commercial lines of credit, private banking		147		147		—		150		8		8
Subtotal		1,578		1,394		—		1,431		83		83
With an allowance for loan losses recorded:
Residential real estate, first mortgage		122		122		37		121		6		8
Commercial real estate, offices		1,567		1,557		19		1,573		80		79
Commercial lines of credit, private banking		196		196		98		206		14		14
Subtotal		1,885		1,875		154		1,900		100		101
Total	$	3,463	$	3,269	$	154	$	3,331	$	183	$	184


	At December 31, 2016						Year Ended December 31, 2016
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Commercial real estate:
Retail	$	1,491	$	1,316	$	—	$	1,347	$	69	$	64
Other		476		39		—		67		—		—
Commercial lines of credit, private banking		154		154		—		157		6		5
Subtotal		2,121		1,509		—		1,571		75		69
With an allowance for loan losses recorded:
Residential real estate, first mortgage		72		72		21		73		3		3
Commercial real estate, offices		1,606		1,595		61		1,610		73		67
Commercial lines of credit, private banking		215		215		107		223		19		18
Subtotal		1,893		1,882		189		1,906		95		88
Total	$	4,014	$	3,391	$	189	$	3,477	$	170	$	157

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

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 December 31, 2018 and 2017:


	2018				2017
			Loans Past				Loans Past
			Due Over 90				Due Over 90
			Days Still				Days Still
	Nonaccrual		Accruing		Nonaccrual		Accruing
Residential real estate:
Residential first mortgage	$	4,360	$	80	$	573	$	131
Commercial real estate:
Retail		60		—		79		—
Total	$	4,420	$	80	$	652	$	131

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


	30 ‑ 59		60 ‑ 89		Greater than
	Days		Days		89 Days		Total		Loans Not
December 31, 2018	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Construction	$	1,971	$	—	$	—	$	1,971	$	174,634	$	176,605
Residential real estate:
Residential first mortgage		3,110		1,257		4,440		8,807		2,421,190		2,429,997
Residential second mortgage		377		295		—		672		21,772		22,444
Commercial real estate:
Retail		—		—		60		60		9,957		10,017
Multifamily		—		—		—		—		64,638		64,638
Offices		—		—		—		—		27,670		27,670
Hotel/SROs		—		—		—		—		101,414		101,414
Industrial		—		—		—		—		14,756		14,756
Other		—		—		—		—		32,460		32,460
Commercial lines of credit:
Private banking		176		—		—		176		15,762		15,938
C&I lending		—		—		—		—		21,838		21,838
Other consumer loans		—		—		—		—		26		26
Total	$	5,634	$	1,552	$	4,500	$	11,686	$	2,906,117	$	2,917,803


	30 ‑ 59		60 ‑ 89		Greater than
	Days		Days		89 Days		Total		Loans Not
December 31, 2017	Past Due		Past Due		Past Due		Past Due		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
Multifamily		—		—		—		—		59,582		59,582
Offices		—		—		—		—		26,571		26,571
Hotel/SROs		—		—		—		—		103,195		103,195
Industrial		—		—		—		—		15,907		15,907
Other		—		—		—		—		31,212		31,212
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


			Special
December 31, 2018	Pass		Mention		Substandard		Doubtful		Total
Construction	$	158,489	$	8,733	$	9,383	$	—	$	176,605
Residential real estate:
Residential first mortgage		2,425,584		—		4,193		220		2,429,997
Residential second mortgage		22,444		—		—		—		22,444
Commercial real estate:
Retail		8,843		—		1,174		—		10,017
Multifamily		63,555		—		1,083		—		64,638
Offices		27,670		—		—		—		27,670
Hotel/SROs		101,414		—		—		—		101,414
Industrial		14,756		—		—		—		14,756
Other		31,451		—		1,009		—		32,460
Commercial lines of credit:
Private banking		15,762		—		176		—		15,938
C&I lending		17,785		—		4,053		—		21,838
Other consumer loans		26		—		—		—		26
Total	$	2,887,779	$	8,733	$	21,071	$	220	$	2,917,803


			Special
December 31, 2017	Pass		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
Multifamily		58,472		1,110		—		—		59,582
Offices		26,571		—		—		—		26,571
Hotel/SROs		103,195		—		—		—		103,195
Industrial		15,907		—		—		—		15,907
Other		25,808		4,733		671		—		31,212
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

Leasehold Improvements and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2018

Leasehold Improvements and Equipment, net

Schedule of leasehold improvements and equipment, net


	Estimated
	Useful
	Life
	(in years)	2018		2017
Leasehold improvements	*	$	10,315	$	8,290
Furniture and equipment	3 ‑ 7		13,256		11,436
Total			23,571		19,726
Less: accumulated depreciation and amortization			(14,082)		(12,683)
Leasehold improvements and equipment, net		$	9,489	$	7,043

* Amortized over the shorter of the lease term or estimated useful life

Mortgage Servicing Rights, net (Tables)

12 Months Ended

Dec. 31, 2018

Mortgage Servicing Rights, net

Schedule of principal balance of mortgage loans serviced for others


	2018		2017
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	85,364	$	73,039
FHLB		92,229		92,697
Private investors		713,095		442,984

Schedule of activity for mortgage servicing rights and related valuation allowance


	2018		2017		2016
Mortgage servicing rights:
Beginning of year	$	6,706	$	4,454	$	1,371
Additions		6,052		3,689		3,766
Amortization		(2,025)		(1,437)		(683)
End of year		10,733		6,706		4,454
Valuation allowance at beginning of year		210		40		98
Additions (recoveries)		(110)		170		(58)
Valuation allowance at end of year		100		210		40
Mortgage servicing rights, net	$	10,633	$	6,496	$	4,414

Deposits (Tables)

12 Months Ended

Dec. 31, 2018

Deposits

Schedule of maturities of time deposits, including brokered deposits

At December 31, 2018, the scheduled maturities of time deposits, including brokered deposits, were as follows:


2019	$	473,900
2020		294,601
2021		117,995
2022		6,244
2023		1,539
	$	894,279

Federal Home Loan Bank Borrowings (Tables)

12 Months Ended

Dec. 31, 2018

Federal Home Loan Bank Borrowings

Schedule of Federal Home Loan Bank (FHLB) borrowings


	2018		Interest Rates	2017		Interest Rates
Short-term fixed rate advances	$	103,000	2.60%	$	148,000	1.47% - 1.56%
Long-term fixed rate advances		190,000	0.98% - 1.18%		190,000	0.98% - 1.18%
Total FHLB advances	$	293,000		$	338,000

Schedule of contractual annual maturities of FHLB advances

The contractual annual maturities of FHLB advances at December 31, 2018 are as follows:


2019	$	114,000
2020		11,000
2021		11,000
2022		—
2023		—
Thereafter		157,000
	$	293,000

Subordinated Notes, net (Tables)

12 Months Ended

Dec. 31, 2018

Subordinated Notes, net

Schedule of subordinated notes


	December 31,
	2018		2017
7.0% fixed to floating rate subordinated notes	$	65,000	$	65,000
Unamortized note premium		533		588
Unamortized debt issuance costs		(504)		(699)
Total	$	65,029	$	64,889

Stock-based Compensation (Tables)

12 Months Ended

Dec. 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


Exercise price of options	$	13.73
Risk-free interest rate		2.80	%
Expected term (in years)		6.75
Expected stock price volatility		23.70	%
Dividend yield		.29	%

Summary of the company's stock option activity


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Options	Price		Term	Value
				(Years)
Outstanding at January 1, 2018	—	$	—	—	$	—
Granted	92,625		13.73
Exercised	—		—
Forfeited/expired	—		—
Outstanding at December 31, 2018	92,625	$	13.73	9.22	$	—

Income Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Income Per Share

Schedule of computation of income per share, basic and diluted


	Year Ended
	December 31,
	2018		2017		2016
Numerator:
Net income	$	63,468	$	37,977	$	33,234

Denominator:
Weighted average common shares outstanding, basic		52,963,308		46,219,367		45,271,000
Weighted average effect of potentially dilutive common shares:
Stock options		—		—		—
Restricted stock		2,259		—		—
Weighted average common shares outstanding, diluted		52,965,567		46,219,367		45,271,000

Income per share:
Basic	$	1.20	$	0.82	$	0.73
Diluted	$	1.20	$	0.82	$	0.73

Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 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
			December 31, 2018
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury securities	$	142,858	$	142,858	$	—	$	—
Collateralized mortgage obligations		1,600		—		1,600		—
Collateralized debt obligations		297		—		—		297
Equity securities		3,895		3,895		—		—


			Fair Value Measurements at
			December 31, 2017
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(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
	2018				2017
	Collateralized				Collateralized
	Debt		Equity		Debt		Equity
	Obligations		Securities		Obligations		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)		24		—		(10)		—
Principal maturities/settlements		(298)		—		(4)		(283)
Sales		—		—		—		—
Transfers in and/or out of Level 3		—		—		—		—
Balance of recurring Level 3 assets at end of period	$	297	$	—	$	571	$	246

Schedule of quantitative information about recurring Level 3 fair value measurements


			Valuation
	Fair Value		Technique	Unobservable Inputs
2018
Collateralized debt obligations	$	297	Discounted cash flow	Collateral default rate	0	%
				Recovery probability	0	%
2017
Collateralized debt obligations	$	571	Discounted cash flow	Collateral default rate	0	%
				Recovery probability	15	%

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


	Fair Value Measurements at December 31, 2018
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Construction	$	2,583	$	—	$	—	$	2,583
Residential real estate		108		—		—		108
Mortgage servicing rights		1,858		—		—		1,858

Fair Value Measurements at December 31, 2017

Quoted Prices in

Significant

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Assets

Inputs

Fair Value

(Level 1)

(Level 2)

(Level 3)

Mortgage servicing rights

1,930

—

1,930

Schedule of quantitative information about nonrecurring Level 3 fair value measurements


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)
Impaired loans:
Construction	$	2,583	Sales comparison approach	Management discount for property type and recent market volatility	10	%
Residential real estate		108	Sales comparison approach	Management discount for property type and recent market volatility	10	%
Mortgage servicing rights		1,858	Discounted cash flow	Discount rate	9.5% - 12.0	%
				Prepayment speed	7.0% - 33.6	%
				Weighted average default rate	0.2	%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017
					Range
					(Weighted
	Fair Value		Valuation Technique	Unobservable Inputs	Average)
Mortgage servicing rights	$	1,930	Discounted cash flow	Discount rate	9.5% - 12.0	%
				Prepayment speed	7.2% - 46.2	%
				Weighted average default rate	0.1% - 0.3	%

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


	Fair Value Measurements at December 31, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	52,526	$	52,526	$	52,526	$	—	$	—
Interest-bearing deposits with other banks		1,100		1,100		1,100		—		—
Mortgage loans held for sale		1,248		1,261		—		1,261		—
Loans, net		2,893,262		2,987,419		—		—		2,987,419

Financial Liabilities
Time deposits		894,279		890,020		—		890,020		—
Federal Home Loan Bank borrowings		293,000		285,265		—		285,265		—
Subordinated notes, net		65,029		65,650		—		65,650		—


	Fair Value Measurements at December 31, 2017
	Carrying		Fair
	Amount		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)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of components of the income tax expense


	2018		2017		2016
Current:
Federal	$	16,435	$	22,804	$	19,131
State		7,979		6,973		5,125
Total current expense		24,414		29,777		24,256
Deferred:
Federal		478		2,835		(936)
State		212		(141)		(105)
Total deferred expense (benefit)		690		2,694		(1,041)
Total income tax expense	$	25,104	$	32,471	$	23,215

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


	2018			2017			2016
U.S. federal statutory rate		21.0	%		35.0	%		35.0	%
Effect of:
State taxes, net of federal benefit		7.1	%		6.3	%		5.8	%
Change in tax laws		—	%		4.7	%		—	%
Loss incurred by pass-through entity		—	%		0.3	%		0.7	%
Income on cash surrender value of bank-owned life insurance		(0.2)	%		(0.3)	%		(0.4)	%
Other, net		0.4	%		0.1	%		—	%
Effective tax rate		28.3	%		46.1	%		41.1	%

Schedule of components of deferred tax assets and liabilities


	2018		2017
Deferred tax assets:
Allowance for loan losses	$	6,113	$	5,188
Mark-to-market adjustments on mortgage loans held for sale		3		774
Supplemental retirement benefit plan		811		746
Deferred loan fee income		342		719
State franchise tax		1,416		1,234
Compensation plans		775		225
Other		265		168
Total deferred tax assets		9,725		9,054
Deferred tax liabilities:
FHLB stock dividends		(121)		(122)
Mortgage servicing rights		(2,975)		(1,825)
Other		(507)		(260)
Total deferred tax liabilities		(3,603)		(2,207)
Deferred tax asset, net	$	6,122	$	6,847

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies

Schedule of minimum annual rental payments under noncancelable operating leases



2019	$	4,171
2020		4,015
2021		3,387
2022		2,605
2023		2,356
Thereafter		9,479
	$	26,013

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


	2018		2017
Commitments to make loans	$	241,809	$	268,401
Unused lines of credit		160,803		157,234
Standby letters of credit		70		70

Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2018

Regulatory Capital Requirements

Schedule of minimum requirements under prompt corrective action regulations classifications


	Capital				Tier 1
	Weighted				Capital to		Common
	Assets				Average		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


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2018
Total adjusted capital to risk-weighted assets
Consolidated	$	421,495	21.98	%	$	153,426	8.00	%		N/A	N/A
Bank		324,905	16.94			153,403	8.00		$	191,754	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		334,616	17.45			115,069	6.00			N/A	N/A
Bank		303,055	15.80			115,052	6.00			153,403	8.00
Common Tier 1 (CET1)
Consolidated		334,616	17.45			86,302	4.50			N/A	N/A
Bank		303,055	15.80			86,289	4.50			124,640	6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated		334,616	10.42			128,431	4.00			N/A	N/A
Bank		303,055	9.44			128,430	4.00			160,538	5.00


					For Capital
					Adequacy				To be Well
	Actual				Purposes				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

Condensed Financial Information of Sterling Bancorp (Parent Only) (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information of Sterling Bancorp (Parent Only)

Schedule of Financial statements of Sterling Bancorp

CONDENSED BALANCE SHEETS


	December 31,
	2018		2017
ASSETS
Cash held at Bank	$	97,315	$	97,464
Investment in subsidiaries		303,496		241,273
Other assets		272		447
Total assets	$	401,083	$	339,184
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Subordinated notes, net	$	65,029	$	64,889
Other liabilities		997		997
Total liabilities		66,026		65,886
Total shareholders’ equity		335,057		273,298
Total liabilities and shareholders’ equity	$	401,083	$	339,184

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME


	Year Ended December 31,
	2018		2017		2016
Expenses:
Interest expense	$	4,689	$	4,070	$	1,978
Other		961		305		84
Total expenses		5,650		4,375		2,062
Loss before income tax and equity in subsidiaries income		(5,650)		(4,375)		(2,062)
Income tax benefit		1,186		1,513		722
Loss before equity in subsidiaries income		(4,464)		(2,862)		(1,340)
Equity in subsidiaries income		67,932		40,839		34,574
Net income	$	63,468	$	37,977	$	33,234
Other comprehensive income
Equity in other comprehensive income (loss) of subsidiaries		113		(104)		627
Total comprehensive income	$	63,581	$	37,873	$	33,861

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2018		2017		2016
Cash flows from operating activities
Net income	$	63,468	$	37,977	$	33,234
Adjustments to reconcile net income to net cash used in operating activities:
Equity in subsidiaries income		(67,932)		(40,839)		(34,574)
Other		140		131		68
Changes in operating assets and liabilities:
Change in other assets		175		275		(682)
Change in other liabilities		—		260		737
Net cash used in operating activities		(4,149)		(2,196)		(1,217)
Cash flows from investing activities
Capital contributed to subsidiary (Bank)		—		(22,000)		(33,250)
Dividends received from subsidiaries		6,119		12,635		10,067
Net cash provided by (used in) investing activities		6,119		(9,365)		(23,183)
Cash flows from financing activities
Proceeds from issuance of subordinated notes		—		15,611		50,000
Payment of debt issuance costs		—		(191)		(729)
Proceeds from issuance of shares of common stock, net of offering costs		—		85,490		—
Dividends paid to shareholders		(2,119)		(9,635)		(8,567)
Net cash provided by (used in) financing activities		(2,119)		91,275		40,704
Net increase (decrease) in cash		(149)		79,714		16,304
Cash held at Bank, beginning of year		97,464		17,750		1,446
Cash held at Bank, end of year	$	97,315	$	97,464	$	17,750
Supplemental cash flows information:
Cash paid for:
Interest	$	4,550	$	4,025	$	1,750
Income taxes		—		—		—

Summary of Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Quarterly Results of Operations (Unaudited)

Schedule of unaudited quarterly results of operations


	2018
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Interest income(1)	$	37,333	$	39,541	$	41,896	$	43,001
Interest expense		8,594		9,684		11,098		12,295
Net interest income		28,739		29,857		30,798		30,706
Provision for loan losses		641		1,120		423		1,045
Non-interest income(1)		5,493		6,297		4,233		6,014
Non-interest expense		11,503		12,621		12,531		13,681
Income before income taxes		22,088		22,413		22,077		21,994
Income tax expense		6,339		6,431		6,336		5,998
Net income	$	15,749	$	15,982	$	15,741	$	15,996
Income per share, basic and diluted	$	0.30	$	0.30	$	0.30	$	0.30


	2017
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Interest income(1)	$	27,503	$	29,088	$	32,930	$	35,315
Interest expense		5,272		5,555		6,786		7,822
Net interest income		22,231		23,533		26,144		27,493
Provision for loan losses		600		600		900		600
Non-interest income(1)		5,226		1,530		5,504		2,248
Non-interest expense		9,092		9,391		10,335		11,943
Income before income taxes		17,765		15,072		20,413		17,198
Income tax expense(2)		7,349		6,134		8,321		10,667
Net income	$	10,416	$	8,938	$	12,092	$	6,531
Income per share, basic and diluted	$	0.23	$	0.20	$	0.27	$	0.13

(1)

(2)

The fourth quarter of 2017 income tax expense includes the deferred income tax expense of $3.3 million recorded on the enactment of the Tax Cuts and Jobs Act.

Nature of Operations and Basis of Presentation (Details) $ in Thousands		12 Months Ended
	Apr. 24, 2017 USD ($)	Dec. 31, 2018 USD ($) segment item	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Nature of Operations and Basis of Presentation
Number of branches \| item		29
Number of reportable segments \| segment		1
Adjustments to Prior Interim Periods
Interest and fees on loans		$ 157,499	$ 122,789	$ 90,719
Merger
Increase in equity after inclusion of acquiree results				2,000
Increase in other assets after inclusion of acquiree results				2,000
Decrease in net income after inclusion of acquiree results				(1,200)
Quantum Fund, LLC
Merger
Cash consideration	$ 2,900
Assets held under management	$ 425,000
Quantum Fund, LLC \| Principal Shareholder
Merger
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 \| Board of directors
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%
Adjustments to Prior Interim Periods
Adjustments to Prior Interim Periods
Service charges and fees			2,088	1,153
Interest and fees on loans			$ 2,088	$ 1,153
San Francisco and Los Angeles, California
Nature of Operations and Basis of Presentation
Number of branches \| item		25

Summary of Significant Accounting Policies - Cash and Due From Banks (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Summary of Significant Accounting Policies
Cash on hand or deposit held to meet regulatory reserve	$ 26,791	$ 23,113

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Loans receivables	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Residential real estate loans
Concentration of Credit Risk
Concentration of credit risk	84.00%	82.00%
California
Concentration of Credit Risk
Concentration of credit risk	94.00%	95.00%

Summary of Significant Accounting Policies - Long-Lived Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets
Amortization expense	$ 450	$ 450	$ 450
Customer-related intangibles
Finite-Lived Intangible Assets
Estimated useful life	10 years
Gross value of intangible assets	$ 4,500	4,500
Accumulated amortization of intangible assets	4,050	3,600
Amortization expense	450	$ 450	$ 450
Future annual amortization for 2019	$ 450

Summary of Significant Accounting Policies - Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Non-Interest Income:
Non - interest income not with in the scope of ASC 606									$ 19,615	$ 11,847	$ 10,750
Total non-interest income	$ 6,014	$ 4,233	$ 6,297	$ 5,493	$ 2,248	$ 5,504	$ 1,530	$ 5,226	22,037	14,508	14,228
Contract Balances
Contract asset balance	$ 29								29
Service charges on deposit accounts
Non-Interest Income:
Non- interest income with in the scope of ASC 606									230	175	67
Investment management and advisory fees
Non-Interest Income:
Non- interest income with in the scope of ASC 606									2,035	2,338	3,209
Interchange fees
Non-Interest Income:
Non- interest income with in the scope of ASC 606									109	117	97
Other service charges and fees
Non-Interest Income:
Non- interest income with in the scope of ASC 606									$ 48	$ 31	$ 105

Summary of Significant Accounting Policies - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Comprehensive Income (Loss)
Federal statutory tax rate (as a percentage)	21.00%	35.00%	35.00%
Accumulated Other Comprehensive Loss
Comprehensive Income (Loss)
Reclassification of certain income tax effects		$ (28)
Accumulated Other Comprehensive Loss \| ASU 2018-02 \| Early adoption
Comprehensive Income (Loss)
Reclassification of certain income tax effects		(28)
Retained Earnings
Comprehensive Income (Loss)
Reclassification of certain income tax effects		28
Retained Earnings \| ASU 2018-02 \| Early adoption
Comprehensive Income (Loss)
Reclassification of certain income tax effects		$ 28

Summary of Significant Accounting Policies - Recently Issued Accounting Guidance (Details) - ASU 2016-02 - Adjustments to Prior Interim Periods $ in Millions	Jan. 01, 2019 USD ($)
Recently Issued Accounting Guidance
Operating lease, net right-of-use assets	$ 21.8
Operating lease, liabilities	$ 22.7

Investment Securities - Amortized Cost and Fair Value Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Available for sale:
Available for sale, Amortized Cost	$ 144,767	$ 122,775
Available for sale, Gross Unrealized Gain	55	55
Available for sale, Gross Unrealized Loss	(67)	(209)
Investment securities available for sale, at fair value	144,755	122,621
Carrying value of debt securities held of any single issuer in excess of 10% of shareholders' equity	$ 0	$ 0
Threshold percentage of total shareholders' equity above which securities of any single issuer exceed	10.00%	10.00%
Proceeds	$ 14,964	$ 96,432	$ 596
Gross realized gains	89	162
Gross realized losses	(3)	(43)	(898)
Total net realized gains (losses)	86	119	(898)
Income tax expense (benefit) on net realized gains and losses	18	41	$ (314)
U.S. Treasury securities
Available for sale:
Available for sale, Amortized Cost	142,905	120,216
Available for sale, Gross Unrealized Gain	9
Available for sale, Gross Unrealized Loss	(56)	(174)
Investment securities available for sale, at fair value	142,858	120,042
Collateralized mortgage obligations
Available for sale:
Available for sale, Amortized Cost	1,554	1,953
Available for sale, Gross Unrealized Gain	46	55
Investment securities available for sale, at fair value	1,600	2,008
Collateralized debt obligations
Available for sale:
Available for sale, Amortized Cost	308	606
Available for sale, Gross Unrealized Loss	(11)	(35)
Investment securities available for sale, at fair value	$ 297	$ 571

Investment Securities - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Available for sale, Amortized Cost
Available for sale, Amortized Cost	$ 144,767	$ 122,775
Available for sale, Fair Value
Available for sale, Fair Value	144,755	122,621
U.S. Treasury securities
Available for sale, Amortized Cost
Due less than one year	142,905
Available for sale, Amortized Cost	142,905	120,216
Available for sale, Fair Value
Due less than one year	142,858
Available for sale, Fair Value	142,858	120,042
Collateralized mortgage obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	1,554	1,953
Available for sale, Fair Value
Available for sale, Fair Value	1,600	2,008
Collateralized debt obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	308	606
Available for sale, Fair Value
Available for sale, Fair Value	$ 297	$ 571

Investment Securities - Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) security	Dec. 31, 2016 USD ($)	Dec. 31, 2017 USD ($)
Fair Value
Less than 12 Months, Fair value	$ 113,219		$ 120,042
12 Months or More, Fair Value	297		571
Available for sale, Continuous unrealized loss position, Fair Value	113,516		120,613
Unrealized Losses
Less than 12 Months, Unrealized Losses	(56)		(174)
12 Months or More, Unrealized Losses	(11)		(35)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (67)		(209)
Number of debt securities in portfolio \| security	9
Number of debt securities in an unrealized loss position \| security	6
U.S. Treasury securities
Fair Value
Less than 12 Months, Fair value	$ 113,219		120,042
Available for sale, Continuous unrealized loss position, Fair Value	113,219		120,042
Unrealized Losses
Less than 12 Months, Unrealized Losses	(56)		(174)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(56)		(174)
Collateralized debt obligations
Fair Value
12 Months or More, Fair Value	297		571
Available for sale, Continuous unrealized loss position, Fair Value	297		571
Unrealized Losses
12 Months or More, Unrealized Losses	(11)		(35)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (11)		$ (35)
Other than temporary impairments
Cumulative credit losses taken on collateralized debt obligations, beginning balance		$ 2,507
Reduction for previous credit losses realized on securities sold during the year		$ (2,507)

Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Equity Securities
Fair value of equity securities	$ 4,141		$ 4,227
Equity securities with readily determinable fair values	3,895		3,981
Equity securities with readily determinable fair values
Net losses recorded during the period on equity securities	87
Unrealized losses recorded during the period on equity securities held at the reporting date	87
Level 3
Equity Securities
Investment in equity securities without readily determinable fair value	$ 246		$ 246
Retained Earnings \| ASU 2016-01
Equity Securities
Cumulative effect adjustment, reclassification of unrealized losses on equity securities (Note 3)		$ (50)
Accumulated Other Comprehensive Loss \| ASU 2016-01
Equity Securities
Cumulative effect adjustment, reclassification of unrealized losses on equity securities (Note 3)		$ 50

Loans - Major Categories of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Major categories of loans
Total Loans	$ 2,917,803	$ 2,612,814
Less: allowance for loan losses	(21,850)	(18,457)	$ (14,822)	$ (10,984)
Loans, net	2,895,953	2,594,357
Deferred loan origination fees and costs	1,224	2,561
Carrying value of loans pledged as collateral on FHLB borrowings	899,000	968,000
Construction loans
Major categories of loans
Total Loans	176,605	192,319
Less: allowance for loan losses	(3,273)	(2,218)	(679)	(317)
Real Estate loans \| Residential
Major categories of loans
Total Loans	2,452,441	2,132,641
Less: allowance for loan losses	(13,826)	(12,279)	(11,863)	(8,192)
Real Estate loans \| Commercial
Major categories of loans
Total Loans	250,955	247,076
Less: allowance for loan losses	(2,573)	(2,040)	(915)	(1,530)
Commercial and industrial loans, lines of credit
Major categories of loans
Total Loans	37,776	40,749
Less: allowance for loan losses	(1,058)	(469)	(373)	(392)
Other consumer loans \| Consumer
Major categories of loans
Total Loans	26	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	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for loan losses
Beginning balance	$ 18,457	$ 14,822	$ 10,984
Provision for loan losses	3,229	2,700	1,280
Charge offs	(4)	(19)	(24)
Recoveries	168	954	2,582
Total ending balance	21,850	18,457	14,822
Construction loans
Allowance for loan losses
Beginning balance	2,218	679	317
Provision for loan losses	1,040	1,432	52
Recoveries	15	107	310
Total ending balance	3,273	2,218	679
Real Estate loans \| Residential
Allowance for loan losses
Beginning balance	12,279	11,863	8,192
Provision for loan losses	1,533	174	3,578
Charge offs	(4)	(19)	(24)
Recoveries	18	261	117
Total ending balance	13,826	12,279	11,863
Real Estate loans \| Commercial
Allowance for loan losses
Beginning balance	2,040	915	1,530
Provision for loan losses	398	556	(2,768)
Recoveries	135	569	2,153
Total ending balance	2,573	2,040	915
Commercial and industrial loans, lines of credit
Allowance for loan losses
Beginning balance	469	373	392
Provision for loan losses	589	96	(19)
Total ending balance	1,058	469	373
Other consumer loans \| Consumer
Allowance for loan losses
Beginning balance	1	2	2
Provision for loan losses		(18)	(2)
Recoveries		17	2
Total ending balance	1	1	2
Unallocated
Allowance for loan losses
Beginning balance	1,450	990	551
Provision for loan losses	(331)	460	439
Total ending balance	$ 1,119	$ 1,450	$ 990

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment And Based On Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 349	$ 154
Collectively evaluated for impairment	21,501	18,303
Total ending allowance balance	21,850	18,457	$ 14,822	$ 10,984
Loans:
Loans individually evaluated for impairment	11,835	3,269
Loans collectively evaluated for impairment	2,905,968	2,609,545
Total Loans	2,917,803	2,612,814
Construction loans
Ending allowance balance attributable to loans:
Individually evaluated for impairment	78
Collectively evaluated for impairment	3,195	2,218
Total ending allowance balance	3,273	2,218	679	317
Loans:
Loans individually evaluated for impairment	7,412
Loans collectively evaluated for impairment	169,193	192,319
Total Loans	176,605	192,319
Real Estate loans \| Residential
Ending allowance balance attributable to loans:
Individually evaluated for impairment	46	37
Collectively evaluated for impairment	13,780	12,242
Total ending allowance balance	13,826	12,279	11,863	8,192
Loans:
Loans individually evaluated for impairment	228	122
Loans collectively evaluated for impairment	2,452,213	2,132,519
Total Loans	2,452,441	2,132,641
Real Estate loans \| Commercial
Ending allowance balance attributable to loans:
Individually evaluated for impairment	30	19
Collectively evaluated for impairment	2,543	2,021
Total ending allowance balance	2,573	2,040	915	1,530
Loans:
Loans individually evaluated for impairment	3,779	2,804
Loans collectively evaluated for impairment	247,176	244,272
Total Loans	250,955	247,076
Commercial and industrial loans, lines of credit
Ending allowance balance attributable to loans:
Individually evaluated for impairment	195	98
Collectively evaluated for impairment	863	371
Total ending allowance balance	1,058	469	373	392
Loans:
Loans individually evaluated for impairment	416	343
Loans collectively evaluated for impairment	37,360	40,406
Total Loans	37,776	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	26	29
Total Loans	26	29
Unallocated
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	1,119	1,450
Total ending allowance balance	$ 1,119	$ 1,450	$ 990	$ 551

Loans - Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	$ 7,209	$ 1,578	$ 2,121
Unpaid principal balance, with an allowance for loan losses recorded	4,861	1,885	1,893
Total Unpaid Principal Balance	12,070	3,463	4,014
Recorded investment, with no related allowance for loan losses recorded	7,008	1,394	1,509
Recorded investment, with an allowance for loan losses recorded	4,827	1,875	1,882
Total Recorded Investment	11,835	3,269	3,391
Allowance for Loan Losses	349	154	189
Average recorded investment, with no related allowance for loan losses recorded	5,585	1,431	1,571
Average recorded investment, with an allowance for loan losses recorded	4,087	1,900	1,906
Total Average Recorded Investment	9,672	3,331	3,477
Interest Income Recognized, with no related allowance for loan losses recorded	402	83	75
Interest Income Recognized, with an allowance for loan losses recorded	280	100	95
Total Interest Income Recognized	682	183	170
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	321	83	69
Cash Basis Interest Recognized, with an allowance for loan losses recorded	248	101	88
Total Cash Basis Interest Recognized	569	184	157
Construction loans
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	4,751
Unpaid principal balance, with an allowance for loan losses recorded	2,661
Recorded investment, with no related allowance for loan losses recorded	4,751
Recorded investment, with an allowance for loan losses recorded	2,661
Allowance for Loan Losses	78
Average recorded investment, with no related allowance for loan losses recorded	3,563
Average recorded investment, with an allowance for loan losses recorded	1,996
Interest Income Recognized, with no related allowance for loan losses recorded	301
Interest Income Recognized, with an allowance for loan losses recorded	163
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	230
Cash Basis Interest Recognized, with an allowance for loan losses recorded	144
Real estate loan, First mortgage \| Residential
Impaired loans by class of loans
Unpaid principal balance, with an allowance for loan losses recorded	254	122	72
Recorded investment, with an allowance for loan losses recorded	228	122	72
Allowance for Loan Losses	46	37	21
Average recorded investment, with an allowance for loan losses recorded	148	121	73
Interest Income Recognized, with an allowance for loan losses recorded	5	6	3
Cash Basis Interest Recognized, with an allowance for loan losses recorded	4	8	3
Real estate loan, Retail \| Commercial
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	1,370	1,431	1,491
Recorded investment, with no related allowance for loan losses recorded	1,174	1,247	1,316
Average recorded investment, with no related allowance for loan losses recorded	1,210	1,281	1,347
Interest Income Recognized, with no related allowance for loan losses recorded	64	75	69
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	58	75	64
Real estate loan, Multifamily \| Commercial
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	1,088
Recorded investment, with no related allowance for loan losses recorded	1,083
Average recorded investment, with no related allowance for loan losses recorded	812
Interest Income Recognized, with no related allowance for loan losses recorded	37
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	33
Real estate loan, Offices \| Commercial
Impaired loans by class of loans
Unpaid principal balance, with an allowance for loan losses recorded	1,530	1,567	1,606
Recorded investment, with an allowance for loan losses recorded	1,522	1,557	1,595
Allowance for Loan Losses	30	19	61
Average recorded investment, with an allowance for loan losses recorded	1,538	1,573	1,610
Interest Income Recognized, with an allowance for loan losses recorded	88	80	73
Cash Basis Interest Recognized, with an allowance for loan losses recorded	80	79	67
Real estate loan, Other \| Commercial
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded			476
Recorded investment, with no related allowance for loan losses recorded			39
Average recorded investment, with no related allowance for loan losses recorded			67
Private banking
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded		147	154
Unpaid principal balance, with an allowance for loan losses recorded	316	196	215
Recorded investment, with no related allowance for loan losses recorded		147	154
Recorded investment, with an allowance for loan losses recorded	316	196	215
Allowance for Loan Losses	95	98	107
Average recorded investment, with no related allowance for loan losses recorded		150	157
Average recorded investment, with an allowance for loan losses recorded	330	206	223
Interest Income Recognized, with no related allowance for loan losses recorded		8	6
Interest Income Recognized, with an allowance for loan losses recorded	19	14	19
Cash Basis Interest Recognized, with no related allowance for loan losses recorded		8	5
Cash Basis Interest Recognized, with an allowance for loan losses recorded	16	$ 14	$ 18
C&I lending
Impaired loans by class of loans
Unpaid principal balance, with an allowance for loan losses recorded	100
Recorded investment, with an allowance for loan losses recorded	100
Allowance for Loan Losses	100
Average recorded investment, with an allowance for loan losses recorded	75
Interest Income Recognized, with an allowance for loan losses recorded	5
Cash Basis Interest Recognized, with an allowance for loan losses recorded	$ 4

Loans - Investment in Nonaccrual and Loans Past Due Still Accruing by Class of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	$ 4,420	$ 652
Loans Past Due Over 90 Days Still Accruing	80	131
Total Past Due	11,686	10,184
Loans Not Past Due	2,906,117	2,602,630
Total Loans	2,917,803	2,612,814
30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	5,634	9,009
60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	1,552	392
Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	4,500	783
Construction loans
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	1,971
Loans Not Past Due	174,634	192,319
Total Loans	176,605	192,319
Construction loans \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	1,971
Real Estate loans \| Residential
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	2,452,441	2,132,641
Real Estate loans \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	250,955	247,076
Real estate loan, First mortgage \| Residential
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	4,360	573
Loans Past Due Over 90 Days Still Accruing	80	131
Total Past Due	8,807	9,998
Loans Not Past Due	2,421,190	2,105,142
Total Loans	2,429,997	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	3,110	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	1,257	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	4,440	704
Real estate loan, Second mortgage \| Residential
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	672	107
Loans Not Past Due	21,772	17,394
Total Loans	22,444	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	377	107
Real estate loan, Second mortgage \| Residential \| 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	295
Real estate loan, Retail \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	60	79
Total Past Due	60	79
Loans Not Past Due	9,957	10,530
Total Loans	10,017	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	60	79
Real estate loan, Multifamily \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	64,638	59,582
Total Loans	64,638	59,582
Real estate loan, Offices \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	27,670	26,571
Total Loans	27,670	26,571
Real estate loan, Hotel/SROs \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	101,414	103,195
Total Loans	101,414	103,195
Real estate loan, Industrial \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	14,756	15,907
Total Loans	14,756	15,907
Real estate loan, Other \| Commercial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	32,460	31,212
Total Loans	32,460	31,212
Commercial and industrial loans, lines of credit
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	37,776	40,749
Private banking
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	176
Loans Not Past Due	15,762	22,898
Total Loans	15,938	22,898
Private banking \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	176
C&I lending
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	21,838	17,851
Total Loans	21,838	17,851
Other consumer loans \| Consumer
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	26	29
Total Loans	$ 26	$ 29

Loans - Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) loan	Dec. 31, 2017 USD ($)
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	$ 5,826	$ 3,073
Allowance for outstanding loan losses classified as troubled debt restructurings	$ 261	$ 56
Number of TDRs subsequently defaulted \| loan	0
Commitment to lend funds	$ 477

Loans - Risk Rating of Loans by Class of Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Recorded investment in loans
Total	$ 2,917,803	$ 2,612,814
Portfolio loans sold during the period	475,646	308,404	$ 287,368
Gain on sale of portfolio loans	16,433	10,062	$ 8,016
Pass
Recorded investment in loans
Total	2,887,779	2,589,151
Special Mention
Recorded investment in loans
Total	8,733	18,680
Substandard
Recorded investment in loans
Total	21,071	4,463
Doubtful
Recorded investment in loans
Total	220	520
Construction loans
Recorded investment in loans
Total	176,605	192,319
Construction loans \| Pass
Recorded investment in loans
Total	158,489	177,241
Construction loans \| Special Mention
Recorded investment in loans
Total	8,733	11,670
Construction loans \| Substandard
Recorded investment in loans
Total	9,383	3,408
Real Estate loans \| Residential
Recorded investment in loans
Total	2,452,441	2,132,641
Real Estate loans \| Commercial
Recorded investment in loans
Total	250,955	247,076
Real estate loan, First mortgage \| Residential
Recorded investment in loans
Total	2,429,997	2,115,140
Real estate loan, First mortgage \| Pass \| Residential
Recorded investment in loans
Total	2,425,584	2,114,511
Real estate loan, First mortgage \| Substandard \| Residential
Recorded investment in loans
Total	4,193	109
Real estate loan, First mortgage \| Doubtful \| Residential
Recorded investment in loans
Total	220	520
Real estate loan, Second mortgage \| Residential
Recorded investment in loans
Total	22,444	17,501
Real estate loan, Second mortgage \| Pass \| Residential
Recorded investment in loans
Total	22,444	17,501
Real estate loan, Retail \| Commercial
Recorded investment in loans
Total	10,017	10,609
Real estate loan, Retail \| Pass \| Commercial
Recorded investment in loans
Total	8,843	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	1,174	79
Real estate loan, Multifamily \| Commercial
Recorded investment in loans
Total	64,638	59,582
Real estate loan, Multifamily \| Pass \| Commercial
Recorded investment in loans
Total	63,555	58,472
Real estate loan, Multifamily \| Special Mention \| Commercial
Recorded investment in loans
Total		1,110
Real estate loan, Multifamily \| Substandard \| Commercial
Recorded investment in loans
Total	1,083
Real estate loan, Hotel/SROs \| Commercial
Recorded investment in loans
Total	101,414	103,195
Real estate loan, Hotel/SROs \| Pass \| Commercial
Recorded investment in loans
Total	101,414	103,195
Real estate loan, Offices \| Commercial
Recorded investment in loans
Total	27,670	26,571
Real estate loan, Offices \| Pass \| Commercial
Recorded investment in loans
Total	27,670	26,571
Real estate loan, Industrial \| Commercial
Recorded investment in loans
Total	14,756	15,907
Real estate loan, Industrial \| Pass \| Commercial
Recorded investment in loans
Total	14,756	15,907
Real estate loan, Other \| Commercial
Recorded investment in loans
Total	32,460	31,212
Real estate loan, Other \| Pass \| Commercial
Recorded investment in loans
Total	31,451	25,808
Real estate loan, Other \| Special Mention \| Commercial
Recorded investment in loans
Total		4,733
Real estate loan, Other \| Substandard \| Commercial
Recorded investment in loans
Total	1,009	671
Commercial and industrial loans, lines of credit
Recorded investment in loans
Total	37,776	40,749
Private banking
Recorded investment in loans
Total	15,938	22,898
Private banking \| Pass
Recorded investment in loans
Total	15,762	22,702
Private banking \| Substandard
Recorded investment in loans
Total	176	196
C&I lending
Recorded investment in loans
Total	21,838	17,851
C&I lending \| Pass
Recorded investment in loans
Total	17,785	17,851
C&I lending \| Substandard
Recorded investment in loans
Total	4,053
Other consumer loans \| Consumer
Recorded investment in loans
Total	26	29
Other consumer loans \| Pass \| Consumer
Recorded investment in loans
Total	$ 26	$ 29

Leasehold Improvements and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Leasehold Improvements and Equipment, net
Leasehold improvements	$ 23,571	$ 19,726
Less: accumulated depreciation and amortization	(14,082)	(12,683)
Leasehold improvements and equipment, net	9,489	7,043
Depreciation and amortization	1,399	1,191	$ 1,058
Leasehold improvements
Leasehold Improvements and Equipment, net
Leasehold improvements	10,315	8,290
Furniture and equipment
Leasehold Improvements and Equipment, net
Leasehold improvements	$ 13,256	$ 11,436
Minimum \| Furniture and equipment
Leasehold Improvements and Equipment, net
Estimated Useful Life (in years)	P3Y
Maximum \| Furniture and equipment
Leasehold Improvements and Equipment, net
Estimated Useful Life (in years)	P7Y

Mortgage Servicing Rights, net - Principle Balance by Category (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Mortgage Servicing Rights, net
Custodial escrow balances maintained on serviced loans	$ 13,593	$ 11,944
FNMA
Mortgage Servicing Rights, net
Principal balance of mortgage loan portfolios	85,364	73,039
FHLB
Mortgage Servicing Rights, net
Principal balance of mortgage loan portfolios	92,229	92,697
Private investors
Mortgage Servicing Rights, net
Principal balance of mortgage loan portfolios	$ 713,095	$ 442,984

Mortgage Servicing Rights, net - Activity and Related Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Mortgage servicing rights activity
Mortgage servicing rights Beginning of period	$ 6,706	$ 4,454	$ 1,371
Additions	6,052	3,689	3,766
Amortization	(2,025)	(1,437)	(683)
Mortgage servicing rights End of period	10,733	6,706	4,454
Valuation allowance at beginning of period	210	40	98
Additions (recoveries)	(110)	170	(58)
Valuation allowance at end of period	100	210	40
Mortgage servicing rights, net	10,633	6,496	4,414
Servicing fee income (expense), net of amortization of servicing rights and changes in the valuation allowance	$ 1,381	$ 407	$ 490

Mortgage Servicing Rights, net - Valuation techniques (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Mortgage Servicing Rights, net
Fair value of mortgage servicing rights	$ 11,523	$ 7,086
Weighted average default rate	0.20%	0.20%
Minimum
Mortgage Servicing Rights, net
Discount rate range	9.50%	9.50%
Prepayment speed range	6.80%	6.80%
Maximum
Mortgage Servicing Rights, net
Discount rate range	12.00%	12.00%
Prepayment speed range	33.60%	36.00%

Deposits - Time deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deposits
Interest-bearing time deposits	$ 894,279	$ 663,472
Brokered time deposits	33,750	156,084
Time deposits that meet or exceed the FDIC insurance limit of $250	$ 208,888	$ 129,101

Deposits - Scheduled maturities of time deposits (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Scheduled maturities of time deposits
2019	$ 473,900
2020	294,601
2021	117,995
2022	6,244
2023	1,539
Total	$ 894,279

Federal Home Loan Bank Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Federal Home Loan Bank Borrowings
Short-term fixed rate advances	$ 103,000	$ 148,000
Long-term fixed rate advances	190,000	190,000
Total FHLB advances	$ 293,000	$ 338,000
Short term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)	2.60%
Minimum \| Short term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)		1.47%
Minimum \| Long term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)	0.98%	0.98%
Maximum \| Short term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)		1.56%
Maximum \| Long term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)	1.18%	1.18%

Federal Home Loan Bank Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Federal Home Loan Bank Borrowings
Total FHLB advances	$ 293,000	$ 338,000
Additional borrowing capacity	325,000
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 - Contractual annual maturities of FHLB advances (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Contractual annual maturities of FHLB advances
2019	$ 114,000
2020	11,000
2021	11,000
Thereafter	157,000
Total FHLB advances	$ 293,000	$ 338,000

Federal Home Loan Bank Borrowings - FHLB Overdraft Line of Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	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	4,133	$ 8,338
FHLB overdraft line of credit	$ 0	$ 0
FHLB overdraft line of credit (as percent)	2.87%	1.67%
FHLB, agreement term	1 year
Carrying value of loans pledged as collateral on FHLB borrowings	$ 899,000	$ 968,000

Federal Home Loan Bank Borrowings - Other Borrowings (Details) - Other Banks - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other Borrowings
Maximum borrowing capacity	$ 70,000	$ 60,000
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	12 Months Ended
Subordinated Notes, net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Aug. 31, 2017	Sep. 30, 2016
Subordinated Notes
Total	$ 65,029	$ 64,889
Interest expense	4,689	4,070	$ 1,978
Bank
Subordinated Notes
Cash proceeds contributed to the Bank		22,000	33,000
Subordinated notes
Subordinated Notes
7.0% fixed to floating rate subordinated notes	65,000	65,000
Unamortized note premium	533	588
Unamortized debt issuance costs	(504)	(699)
Total	$ 65,029	64,889
Interest rate (as a percent)	7.00%
Interest expense	$ 4,689	$ 4,070	$ 1,978
Redemption price percentage of outstanding principal amount	100.00%
Subordinated notes issued April through September, 2016 \| Subordinated notes
Subordinated Notes
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
7.0% fixed to floating rate subordinated notes				$ 15,000
Unamortized note premium				611
Unamortized debt issuance costs				$ (191)
LIBOR \| Subordinated notes
Subordinated Notes
Variable interest rate on subordinate notes (in percent)	5.82%

Shareholders' Equity (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2017 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) Vote $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares	Oct. 31, 2017 $ / shares shares	Sep. 30, 2017 $ / shares shares
Shareholders' Equity
Common stock, par value (in dollars per share) \| $ / shares					$ 0
Common stock, shares authorized					500,000,000
Preferred stock, shares authorized		10,000,000	10,000,000		10,000,000	1,000,000
Number of shares of stock issued and sold			7,692,308
Number of votes \| Vote		1
Offering expenses \| $			$ 6,818
Dividends paid per common share (in dollars per share) \| $ / shares		$ 0.04	$ 0.21	$ 0.19
Dividends distributed \| $		$ 2,119	$ 9,635	$ 8,567
Preferred stock, shares issued		0	0
Preferred stock, shares outstanding		0	0
Common stock
Shareholders' Equity
Common stock, par value (in dollars per share) \| $ / shares		$ 0	$ 0
Common stock, shares authorized		500,000,000	500,000,000
Common stock \| IPO
Shareholders' Equity
Number of shares of stock issued and sold	7,692,308
Offering price (in dollars per share) \| $ / shares	$ 12.00
Net proceeds from IPO \| $	$ 85,500
Underwriting discounts and commissions \| $	5,500
Offering expenses \| $	$ 1,300
Common stock, voting
Shareholders' Equity
Common stock, par value (in dollars per share) \| $ / shares						$ 0
Common stock, shares authorized						490,000,000
Common stock, shares issued on exchange	5,072,000
Common stock, voting \| Common stock
Shareholders' Equity
Number of shares of stock issued and sold			7,692,308
Common stock, non-voting
Shareholders' Equity
Common stock, par value (in dollars per share) \| $ / shares						$ 0
Common stock, shares authorized						10,000,000
Common stock, shares exchanged at fair value	5,072,000
Series A Cumulative Redeemable Preferred Shares
Shareholders' Equity
Preferred stock, shares authorized						200,000

Stock-based Compensation (Details) - 2017 Omnibus Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Jul. 17, 2018	Mar. 21, 2018	Dec. 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 Options
Granted			92,625
Outstanding at September 30, 2018			92,625
Weighted Average Exercise Price
Granted			$ 13.73
Outstanding at September 30, 2018			$ 13.73
Outstanding share options
Weighted Average Remaining Contractual Term (Years)			9 years 2 months 19 days
Share-based compensation costs recognized			$ 82
Total unrecognized compensation cost - stock options			$ 340
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period			3 years 2 months 19 days
Number of options exercisable			0
Restricted Stock
Stock-based Compensation
Number of share instruments issued		39,655
Weighted average grant-date fair value	$ 13.55
Outstanding share options
Share-based compensation costs recognized			$ 215
Total unrecognized compensation cost - restricted stock awards			$ 449
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period			2 years 8 months 5 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	9,320	6,555

Income Per Share (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended								12 Months Ended
	Sep. 30, 2017	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares
Numerator:
Net income \| $		$ 15,996	$ 15,741	$ 15,982	$ 15,749	$ 6,531	$ 12,092	$ 8,938	$ 10,416	$ 63,468	$ 37,977	$ 33,234
Denominator:
Basic (in shares)										52,963,308	46,219,367	45,271,000
Weighted average effect of potentially dilutive common shares:
Weighted Average Number of Shares Outstanding, Diluted										52,965,567	46,219,367	45,271,000
Income per share:
Basic (in dollars per share) \| $ / shares										$ 1.20	$ 0.82	$ 0.73
Diluted (in dollars per share) \| $ / shares										$ 1.20	$ 0.82	$ 0.73
Number of dilutive securities outstanding (in shares)										52,965,567	46,219,367	45,271,000
Common stock
Income per share:
Stock split ratio	1,000
Common stock \| Restricted Stock
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation										2,259
Common stock \| Stock Options
Income per share:
Potentially dilutive securities excluded from diluted per share calculation										92,625

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee Benefit Plans
Maximum percentage of eligible annual compensation that the employee can contribute under the plan	100.00%
Maximum amount of eligible annual compensation that the employee can contribute under the plan	$ 18
Employer matching contribution, as a percent of employee's contribution	100.00%
Percentage of employee's compensation that is matched by employer	3.00%
Maximum percentage of additional contribution in-excess of employee match	1.00%
Amount of contributions to the plan	$ 773	$ 661	$ 432
Supplemental Retirement Benefit Plan
Employee Benefit Plans
Retirement obligation liability	2,898	2,653
Retirement benefit plan expense, net of forfeitures	273	281	254
Retirement benefit plan, benefit payments	28	25	$ 22
Spilt Dollar Life Insurance Agreement
Employee Benefit Plans
Postretirement benefit estimated present value	$ 4,200	$ 4,281

Fair Values of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Available for sale debt securities:
Available for sale debt securities, at fair value	$ 144,755	$ 122,621
Equity securities
Equity securities	3,895	3,981
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	142,858	120,042
U.S. Treasury securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	142,858	120,042
U.S. Treasury securities \| Level 1 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	142,858	120,042
Collateralized mortgage obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	1,600	2,008
Collateralized mortgage obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	1,600	2,008
Collateralized mortgage obligations \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	1,600	2,008
Collateralized debt obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	297	571
Collateralized debt obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	297	571
Collateralized debt obligations \| Level 3 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	297	571
Equity securities \| Recurring
Equity securities
Equity securities	3,895	4,227
Equity securities \| Level 1 \| Recurring
Equity securities
Equity securities	$ 3,895	3,981
Equity securities \| Level 3 \| Recurring
Equity securities
Equity securities		$ 246

Fair Values of Financial Instruments - Reconciliation and income statement classification using Level 3 inputs (Details) - Recurring - Level 3 - USD ($) $ in Thousands	12 Months Ended
	Dec. 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 January 1	$ 571	$ 585
Included in other comprehensive income (loss)	24	(10)
Principal maturities/settlements	(298)	(4)
Balance of recurring Level 3 assets at end of period	297	571
Investment income
Unrealized losses on investments	11	35
Interest income	16	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 January 1	$ 246	529
Principal maturities/settlements		(283)
Balance of recurring Level 3 assets 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) $ in Thousands	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($) item
Unobservable inputs
Available for sale debt securities, at fair value	$ 144,755	$ 122,621
Collateralized debt obligations
Unobservable inputs
Available for sale debt securities, at fair value	297	571
Collateralized debt obligations \| Recurring
Unobservable inputs
Available for sale debt securities, at fair value	297	571
Collateralized debt obligations \| Level 3 \| Recurring
Unobservable inputs
Available for sale debt securities, at fair value	297	571
Collateralized debt obligations \| Level 3 \| Recurring \| Discounted cash flow
Unobservable inputs
Available for sale debt securities, at fair value	$ 297	$ 571
Collateralized debt obligations \| Level 3 \| Recurring \| Discounted cash flow \| Collateral default rate
Unobservable inputs
Debt securities measurement input \| item	0.00	0.00
Collateralized debt obligations \| Level 3 \| Recurring \| Discounted cash flow \| Recovery probability
Unobservable inputs
Debt securities measurement input \| item	0.00	0.15

Fair Values of Financial Instruments - Carrying amounts and estimated fair values of financial instruments not carried at fair value (Details)	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($) item
Financial Assets
Interest-bearing deposits with other banks	$ 1,100,000
Nonrecurring \| Level 3 \| Weighted average default rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item	0.002
Nonrecurring \| Maximum \| Level 3 \| Prepayment speed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item		0.462
Nonrecurring \| Maximum \| Level 3 \| Weighted average default rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item		0.003
Nonrecurring \| Maximum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item	0.336
Nonrecurring \| Minimum \| Level 3 \| Prepayment speed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item		0.072
Nonrecurring \| Minimum \| Level 3 \| Weighted average default rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item		0.001
Nonrecurring \| Minimum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item	0.070
Nonrecurring \| Impaired loans, construction
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	$ 2,583,000
Nonrecurring \| Impaired loans, construction \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	2,583,000
Nonrecurring \| Impaired loans, construction \| Level 3 \| Sales comparison approach
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	$ 2,583,000
Nonrecurring \| Impaired loans, construction \| Level 3 \| Sales comparison approach \| Management discount for property type and recent market volatility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item	0.10
Nonrecurring \| Residential real estate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	$ 108,000
Nonrecurring \| Residential real estate \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	108,000
Nonrecurring \| Residential real estate \| Level 3 \| Sales comparison approach
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	$ 108,000
Nonrecurring \| Residential real estate \| Level 3 \| Sales comparison approach \| Management discount for property type and recent market volatility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item	0.10
Nonrecurring \| Mortgage servicing rights
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	$ 1,858,000	$ 1,930,000
Nonrecurring \| Mortgage servicing rights \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	1,858,000	1,930,000
Nonrecurring \| Mortgage servicing rights \| Level 3 \| Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a non-recurring basis	$ 1,858,000	$ 1,930
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discount rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item	0.120
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Discount rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item		0.120
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discount rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item	0.095
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Discount rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value, measurement input \| item		0.095
Carrying value per balance sheet
Financial Assets
Cash and due from banks	$ 52,526,000	$ 40,147,000
Interest-bearing deposits with other banks	1,100,000
Mortgage loans held for sale	1,248,000	112,866,000
Loans, net	2,893,262,000	2,594,357,000
Financial Liabilities
Time deposits	894,279,000	663,472,000
Federal Home Loan Bank borrowings	293,000,000	338,000,000
Subordinated notes, net	65,029,000	64,889,000
Estimated fair value
Financial Assets
Cash and due from banks	52,526,000	40,147,000
Interest-bearing deposits with other banks	1,100,000
Mortgage loans held for sale	1,261,000	115,619,000
Loans, net	2,987,419,000	2,635,986,000
Financial Liabilities
Time deposits	890,020,000	660,380,000
Federal Home Loan Bank borrowings	285,265,000	330,004,000
Subordinated notes, net	65,650,000	67,485,000
Estimated fair value \| Level 1
Financial Assets
Cash and due from banks	52,526,000	40,147,000
Interest-bearing deposits with other banks	1,100,000
Estimated fair value \| Level 2
Financial Assets
Mortgage loans held for sale	1,261,000	115,619,000
Financial Liabilities
Time deposits	890,020,000	660,380,000
Federal Home Loan Bank borrowings	285,265,000	330,004,000
Subordinated notes, net	65,650,000	67,485,000
Estimated fair value \| Level 3
Financial Assets
Loans, net	$ 2,987,419,000	$ 2,635,986,000

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current:
Federal									$ 16,435	$ 22,804	$ 19,131
State									7,979	6,973	5,125
Total current expense									24,414	29,777	24,256
Deferred:
Federal									478	2,835	(936)
State									212	(141)	(105)
Total deferred expense (benefit)									690	2,694	(1,041)
Total income tax expense	$ 5,998	$ 6,336	$ 6,431	$ 6,339	$ 10,667	$ 8,321	$ 6,134	$ 7,349	$ 25,104	$ 32,471	$ 23,215

Income Taxes - Reconciliation of income tax rate (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of U.S. federal statutory tax rate and effective income tax rate
U.S. federal statutory rate (as a percentage)	21.00%	35.00%	35.00%
Effect of:
State taxes, net of federal benefit (as a percentage)	7.10%	6.30%	5.80%
Change in tax laws (as a percentage)		4.70%
Loss incurred by pass-through entity (as a percentage)		0.30%	0.70%
Income on cash surrender value of bank-owned life insurance (as a percentage)	(0.20%)	(0.30%)	(0.40%)
Other, net (as a percentage)	0.40%	0.10%
Effective tax rate (as a percentage)	28.30%	46.10%	41.10%

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Allowance for loan losses	$ 6,113	$ 5,188
Mark-to-market adjustments on mortgage loans held for sale	3	774
Supplemental retirement benefit plan	811	746
Deferred loan fee income	342	719
State franchise tax	1,416	1,234
Compensation plans	775	225
Other	265	168
Total deferred tax assets	9,725	9,054
Deferred tax liabilities:
FHLB stock dividends	(121)	(122)
Mortgage servicing rights	(2,975)	(1,825)
Other	(507)	(260)
Total deferred tax liabilities	(3,603)	(2,207)
Deferred tax asset, net	$ 6,122	$ 6,847

Income Taxes - Tax Cut and Jobs Act (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes
Federal statutory tax rate (as a percentage)		21.00%	35.00%	35.00%
Deferred income tax expense due to effect of the Tax Act	$ 3,300
Unrecognized tax benefits		$ 0

Related Party Transactions (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 24, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Charitable donation to foundation \| Board of directors
Related party transactions
Amount of related party transaction, expense		$ 900	$ 900	$ 900
Lease of storage and office space \| Principal Shareholder
Related party transactions
Amount of related party transaction, expense		62	45	32
Data processing and programming services provided \| Principal Shareholder
Related party transactions
Amount of related party transaction, revenue		$ 105	98	158
Quantum Fund, LLC \| 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 \| 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	$ 760
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 - Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies
Rent expense	$ 4,401	$ 3,544	$ 2,770
Minimum annual rental payments under noncancelable operating leases
2019	4,171
2020	4,015
2021	3,387
2022	2,605
2023	2,356
Thereafter	9,479
Total	$ 26,013

Commitments and Contingencies - Unfunded Commitments to Extend Credit and Standby Letters of Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Commitment to make loans
Commitments and Contingencies
Face amount	$ 241,809	$ 268,401
Unused lines of credit
Commitments and Contingencies
Face amount	160,803	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	5,603
Outstanding commitments with varying interest rates	$ 236,206
Real Estate loans \| Residential \| Minimum \| Unfunded Commitments to Extend Credit
Commitments and Contingencies
Fixed interest rate (as a percent)	4.25%
Maturity period	20 years
Variable interest rate (as a percentage)	3.875%
Maturity period for variable interest loans	2 years
Real Estate loans \| Residential \| Maximum \| Unfunded Commitments to Extend Credit
Commitments and Contingencies
Fixed interest rate (as a percent)	7.50%
Maturity period	30 years
Variable interest rate (as a percentage)	7.875%
Maturity period for variable interest loans	30 years

Regulatory Capital Requirements - Capital adequacy requirements (Details)		12 Months Ended
	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2016	Dec. 31, 2017
Regulatory Capital Requirements
Capital conservation buffer (as a percent)	2.50%	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%

Regulatory Capital Requirements - Actual and minimum required capital amounts and ratios and Dividend Restrictions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Total adjusted capital to risk-weighted assets, Amount
Actual	$ 421,495	$ 365,078
For Capital Adequacy Purposes	$ 153,426	$ 140,447
Total adjusted capital to risk-weighted assets, Ratio
Actual (as a percent)	21.98%	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	$ 334,616	$ 272,732
For Capital Adequacy Purposes	$ 115,069	$ 105,336
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual (as a percent)	17.45%	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	$ 334,616	$ 272,732
For Capital Adequacy Purposes	$ 86,302	$ 79,002
Common Tier 1 (CET1), Ratio
Actual (as a percent)	17.45%	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	$ 334,616	$ 272,732
For Capital Adequacy Purposes	$ 128,431	$ 110,949
Tier 1 (core) capital to adjusted tangible assets, Ratio
Actual (as a percent)	10.42%	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	$ 174,000
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	$ 324,905	$ 259,165
For Capital Adequacy Purposes	153,403	140,447
To be Well Capitalized	$ 191,754	$ 175,559
Total adjusted capital to risk-weighted assets, Ratio
Actual (as a percent)	16.94%	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	$ 303,055	$ 240,708
For Capital Adequacy Purposes	115,052	105,336
To be Well Capitalized	$ 153,403	$ 140,447
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual (as a percent)	15.80%	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	$ 303,055	$ 240,708
For Capital Adequacy Purposes	86,289	79,002
To be Well Capitalized	$ 124,640	$ 114,114
Common Tier 1 (CET1), Ratio
Actual (as a percent)	15.80%	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	$ 303,055	$ 240,708
For Capital Adequacy Purposes	128,430	110,949
To be Well Capitalized	$ 160,538	$ 138,687
Tier 1 (core) capital to adjusted tangible assets, Ratio
Actual (as a percent)	9.44%	8.68%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To be Well Capitalized (as a percent)	5.00%	5.00%

Condensed Financial Information of Sterling Bancorp (Parent Only) - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Other assets	$ 3,026	$ 2,231
Total assets	3,196,774	2,961,958
Liabilities:
Subordinated notes, net	65,029	64,889
Total liabilities	2,861,717	2,688,660
Total shareholders' equity	335,057	273,298	$ 162,272	$ 136,278
Total liabilities and shareholders' equity	3,196,774	2,961,958
Parent company \| Reportable legal entities
ASSETS
Cash held at Bank	97,315	97,464
Investment in subsidiaries	303,496	241,273
Other assets	272	447
Total assets	401,083	339,184
Liabilities:
Subordinated notes, net	65,029	64,889
Other liabilities	997	997
Total liabilities	66,026	65,886
Total shareholders' equity	335,057	273,298
Total liabilities and shareholders' equity	$ 401,083	$ 339,184

Condensed Financial Information of Sterling Bancorp (Parent Only) - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Expenses
Interest expense									$ 4,689	$ 4,070	$ 1,978
Income tax benefit	$ (5,998)	$ (6,336)	$ (6,431)	$ (6,339)	$ (10,667)	$ (8,321)	$ (6,134)	$ (7,349)	(25,104)	(32,471)	(23,215)
Net income	$ 15,996	$ 15,741	$ 15,982	$ 15,749	$ 6,531	$ 12,092	$ 8,938	$ 10,416	63,468	37,977	33,234
Other comprehensive income
Comprehensive income									63,581	37,873	33,861
Parent company \| Reportable legal entities
Expenses
Interest expense									4,689	4,070	1,978
Other									961	305	84
Total expenses									5,650	4,375	2,062
Loss before income tax and equity in subsidiaries income									(5,650)	(4,375)	(2,062)
Income tax benefit									1,186	1,513	722
Loss before equity in subsidiaries income									(4,464)	(2,862)	(1,340)
Equity in subsidiaries income									67,932	40,839	34,574
Net income									63,468	37,977	33,234
Other comprehensive income
Equity in other comprehensive income (loss) of subsidiaries									113	(104)	627
Comprehensive income									$ 63,581	$ 37,873	$ 33,861

Condensed Financial Information of Sterling Bancorp (Parent Only) - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Net income	$ 63,468	$ 37,977	$ 33,234
Adjustments to reconcile net income to net cash provided by operating activities:
Other	140	131	35
Change in operating assets and liabilities:
Change in other assets	(1,245)	(3,918)	(5,201)
Net cash provided by operating activities	60,575	44,413	28,704
Cash Flows From Investing Activities
Net cash used in investing activities	(208,652)	(774,730)	(428,746)
Cash Flows From Financing Activities
Proceeds from issuance of subordinated notes		15,611	50,000
Payment of debt issuance costs		(191)	(729)
Proceeds from issuance of shares of common stock, net of offering costs		85,490
Dividends paid to shareholders	(2,119)	(9,635)	(8,567)
Net cash provided by financing activities	160,456	748,340	408,550
Net change in cash and due from banks	12,379	18,023	8,508
Cash and due from banks at beginning of period	40,147	22,124	13,616
Cash and due from banks at end of period	52,526	40,147	22,124
Cash paid for:
Interest	34,792	23,615	14,594
Income taxes	26,055	28,010	26,350
Parent company \| Reportable legal entities
Cash flows from operating activities
Net income	63,468	37,977	33,234
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in subsidiaries income	(67,932)	(40,839)	(34,574)
Other	140	131	68
Change in operating assets and liabilities:
Change in other assets	175	275	(682)
Change in other liabilities		260	737
Net cash provided by operating activities	(4,149)	(2,196)	(1,217)
Cash Flows From Investing Activities
Capital contributed to subsidiary (Bank)		(22,000)	(33,250)
Dividends received from subsidiaries	6,119	12,635	10,067
Net cash used in investing activities	6,119	(9,365)	(23,183)
Cash Flows From Financing Activities
Proceeds from issuance of subordinated notes		15,611	50,000
Payment of debt issuance costs		(191)	(729)
Proceeds from issuance of shares of common stock, net of offering costs		85,490
Dividends paid to shareholders	(2,119)	(9,635)	(8,567)
Net cash provided by financing activities	(2,119)	91,275	40,704
Net change in cash and due from banks	(149)	79,714	16,304
Cash and due from banks at beginning of period	97,464	17,750	1,446
Cash and due from banks at end of period	97,315	97,464	17,750
Cash paid for:
Interest	$ 4,550	$ 4,025	$ 1,750

Summary of Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Summary of Quarterly Results of Operations (Unaudited)
Interest income	$ 43,001	$ 41,896	$ 39,541	$ 37,333	$ 35,315	$ 32,930	$ 29,088	$ 27,503	$ 161,771	$ 124,836	$ 91,956
Interest expense	12,295	11,098	9,684	8,594	7,822	6,786	5,555	5,272	41,671	25,435	15,845
Net interest income	30,706	30,798	29,857	28,739	27,493	26,144	23,533	22,231	120,100	99,401	76,111
Provision for loan losses	1,045	423	1,120	641	600	900	600	600	3,229	2,700	1,280
Non-interest income	6,014	4,233	6,297	5,493	2,248	5,504	1,530	5,226	22,037	14,508	14,228
Non-interest expense	13,681	12,531	12,621	11,503	11,943	10,335	9,391	9,092	50,336	40,761	32,610
Income before income taxes	21,994	22,077	22,413	22,088	17,198	20,413	15,072	17,765	88,572	70,448	56,449
Income tax expense	5,998	6,336	6,431	6,339	10,667	8,321	6,134	7,349	25,104	32,471	23,215
Net income	$ 15,996	$ 15,741	$ 15,982	$ 15,749	$ 6,531	$ 12,092	$ 8,938	$ 10,416	$ 63,468	$ 37,977	$ 33,234
Income per share, basic and diluted (in dollars per share)	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.13	$ 0.27	$ 0.20	$ 0.23	$ 1.20	$ 0.82	$ 0.73
Decrease in non-interest income				$ 544	$ 578	$ 648	$ 502	$ 360
Increase in interest income				$ 544	578	$ 648	$ 502	$ 360
Deferred income tax expense due to effect of the Tax Act					$ 3,300

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended	12 Months Ended
	Mar. 01, 2019	Jan. 01, 2019	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 24, 2018
Subsequent events
Mortgage loans intend to sell				$ 47,868	$ 98,315	$ 71,817
Maximum
Subsequent events
Stock repurchase program authorized amount							$ 50,000
Subsequent Events \| Residential \| Residential real estate
Subsequent events
Mortgage loans intend to sell			$ 49,000
Subsequent Events \| Stock Options
Subsequent events
Issuance options to purchase	84,891
Exercise price of options	$ 10.12
Percentage of awards vested in each of third and fourth year	50.00%
Maximum term of stock awards granted	10 years
Subsequent Events \| Restricted Stock
Subsequent events
Issuance options to purchase	71,147
Percentage of awards vested in each of third and fourth year	50.00%
Subsequent Events \| Common stock
Subsequent events
Shares repurchased		1,104,060
Shares repurchased, value		$ 10,462