0001104659-20-114304 | 10-Q | XBRL Viewer

Print Document View Excel Document

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	Sep. 30, 2020
Document and Entity Information
Entity Registrant Name	Sterling Bancorp, Inc.
Entity Central Index Key	0001680379
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Interactive Data Current	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		49,977,209
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	true
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 389,984	$ 77,819
Interest-bearing time deposits with other banks	1,025	1,025
Investment securities	159,168	152,544
Mortgage loans held for sale	3,776	1,337
Loans, net of allowance for loan losses of $42,613 and $21,730	2,799,645	2,891,530
Accrued interest receivable	13,221	13,718
Mortgage servicing rights, net	7,976	9,765
Leasehold improvements and equipment, net	9,081	9,198
Operating lease right-of-use assets	17,802	18,715
Federal Home Loan Bank stock, at cost	22,950	22,950
Cash surrender value of bank-owned life insurance	32,070	31,917
Deferred tax asset, net	18,113	12,095
Other assets	2,564	2,271
Total assets	3,477,375	3,244,884
Liabilities:
Noninterest-bearing deposits	68,650	77,563
Interest-bearing deposits	2,576,643	2,417,877
Total deposits	2,645,293	2,495,440
Federal Home Loan Bank borrowings	329,000	229,000
Subordinated notes, net	65,218	65,179
Operating lease liabilities	18,959	19,868
Accrued expenses and other liabilities	90,230	102,783
Total liabilities	3,148,700	2,912,270
Shareholders' equity:
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding
Additional paid-in capital	13,319	13,210
Retained earnings	233,790	238,319
Accumulated other comprehensive income	759	196
Total shareholders' equity	328,675	332,614
Total liabilities and shareholders' equity	3,477,375	3,244,884
Common stock
Shareholders' equity:
Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 50,067,738 shares at March 31, 2020 and 49,944,473 shares at December 31, 2019, respectively	80,807	80,889
Total shareholders' equity	$ 80,807	$ 80,889

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Allowance for loan losses	$ 42,613	$ 21,730
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)	50,067,738	49,944,473
Common stock, outstanding (in shares)	50,067,738	49,944,473

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest income
Interest and fees on loans	$ 39,525	$ 41,722
Interest and dividends on investment securities and restricted stock	1,034	1,227
Other interest	434	236
Total interest income	40,993	43,185
Interest expense
Interest on deposits	10,364	10,656
Interest on Federal Home Loan Bank borrowings	810	1,055
Interest on subordinated notes	1,177	1,174
Total interest expense	12,351	12,885
Net interest income	28,642	30,300
Provision (recovery) for loan losses	20,853	(1,014)
Net interest income after provision (recovery) for loan losses	7,789	31,314
Non-interest income
Gain on sale of investment securities	233
Gain on sale of mortgage loans held for sale	269	38
Gain on sale of portfolio loans		2,442
Unrealized gains on equity securities	80	49
Net servicing income (loss)	(911)	325
Income on cash surrender value of bank-owned life insurance	328	310
Other	100	220
Total non-interest income	529	3,828
Non-interest expense
Salaries and employee benefits	6,753	7,267
Occupancy and equipment	2,118	2,237
Professional fees	3,312	962
Advertising and marketing	273	439
FDIC assessments	19	255
Data processing	335	308
Other	1,425	1,654
Total non-interest expense	14,235	13,122
Income (loss) before income taxes	(5,917)	22,020
Income tax expense (benefit)	(1,887)	6,337
Net income (loss)	$ (4,030)	$ 15,683
Income (loss) per share, basic and diluted (in dollars per share)	$ (0.08)	$ 0.30
Weighted average common shares outstanding:
Basic (in shares)	49,837,662	52,554,446
Diluted (in shares)	49,837,662	52,562,820
Service charges and fees
Non-interest income
Non-interest income	$ 117	$ 104
Investment management and advisory fees
Non-interest income
Non-interest income	$ 313	$ 340

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Comprehensive Income
Net income (loss)	$ (4,030)	$ 15,683
Other comprehensive income, net of tax:
Unrealized gains on investment securities, arising during the period, net of tax effect of $284 and $41, respectively	731	106
Reclassification adjustment for gains included in net income of $233 and $-, respectively, included in gain on sale of investment securities, net of tax effect of $65 and $-, respectively	(168)
Total other comprehensive income	563	106
Comprehensive income (loss)	$ (3,467)	$ 15,789

- Definition

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

+ References + Details

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Comprehensive Income
Unrealized gains (losses) on investment securities, arising during the period, tax effect	$ 284	$ 41
Reclassification adjustment for gains included in net income on sale of investment securities, before tax	233	0
Reclassification adjustment for gains included in net income on sale of investment securities, tax effect	$ 65	$ 0

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at beginning of the period at Dec. 31, 2018	$ 111,238	$ 12,713	$ 211,115	$ (9)	$ 335,057
Balance at beginning of the period (in shares) at Dec. 31, 2018	53,012,283
Increase (Decrease) in Stockholders' Equity
Net income (loss)			15,683		15,683
Repurchases of shares of common stock (Note 10)	$ (11,544)				(11,544)
Repurchases of shares of common stock (Note 10) (in shares)	(1,212,574)
Stock-based compensation		126			126
Stock-based compensation (in shares)	71,144
Other comprehensive loss				106	106
Dividends distributed			(526)		(526)
Balance at end of the period at Mar. 31, 2019	$ 99,694	12,839	226,272	97	338,902
Balance at end of the period (in shares) at Mar. 31, 2019	51,870,853
Balance at beginning of the period at Dec. 31, 2019	$ 80,889	13,210	238,319	196	332,614
Balance at beginning of the period (in shares) at Dec. 31, 2019	49,944,473
Increase (Decrease) in Stockholders' Equity
Net income (loss)			(4,030)		(4,030)
Repurchases of shares of common stock (Note 10)	$ (82)				(82)
Repurchases of shares of common stock (Note 10) (in shares)	(10,912)
Stock-based compensation		109			109
Stock-based compensation (in shares)	134,177
Other comprehensive loss				563	563
Dividends distributed			(499)		(499)
Balance at end of the period at Mar. 31, 2020	$ 80,807	$ 13,319	$ 233,790	$ 759	$ 328,675
Balance at end of the period (in shares) at Mar. 31, 2020	50,067,738

Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Changes in Shareholders' Equity
Dividends paid per common share (in dollars per share)	$ 0.01	$ 0.01

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows From Operating Activities
Net income (loss)	$ (4,030)	$ 15,683
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (recovery) for loan losses	20,853	(1,014)
Deferred income taxes	(6,237)	143
Gain on sale of investment securities	(233)
Unrealized gains on equity securities	(80)	(49)
Accretion on investment securities, net	(128)	(441)
Depreciation and amortization on leasehold improvements and equipment	398	391
Amortization of intangible asset		113
Origination, net of principal payments, mortgage loans held for sale	(16,855)	(3,166)
Proceeds from sale of mortgage loans held for sale	14,578	4,152
Gain on sale of mortgage loans held for sale	(269)	(38)
Gain on sale of portfolio loans		(2,442)
Increase in cash surrender value of bank-owned life insurance, net of premiums	(153)	(152)
Valuation allowance adjustments and amortization of mortgage servicing rights	1,896	721
Stock-based compensation	109	126
Other	39	36
Change in operating assets and liabilities:
Accrued interest receivable	497	(217)
Other assets	662	1,432
Accrued expenses and other liabilities	(13,504)	5,336
Net cash provided by (used in) operating activities	(2,457)	20,614
Cash Flows From Investing Activities
Maturities and principal receipts of investment securities	47,272	45,124
Sales of investment securities	23,044
Purchases of investment securities	(75,717)	(46,640)
Net decrease (increase) in loans	71,032	(74,766)
Proceeds from the sale of portfolio loans		49,891
Purchase of leasehold improvements and equipment	(281)	(582)
Net cash provided by (used in) investing activities	65,350	(26,973)
Cash Flows From Financing Activities
Net increase (decrease) in deposits	149,853	(16,118)
Proceeds from advances from Federal Home Loan Bank	100,000	1,021,000
Repayments of advances from Federal Home Loan Bank		(981,000)
Net change in line of credit with Federal Home Loan Bank		51
Repurchases of shares of common stock	(82)	(11,544)
Dividends paid to shareholders	(499)	(526)
Net cash provided by financing activities	249,272	11,863
Net change in cash and due from banks	312,165	5,504
Cash and due from banks at beginning of period	77,819	52,526
Cash and due from banks at end of period	389,984	58,030
Cash paid:
Interest	9,993	12,278
Income taxes	102
Noncash investing and financing activities:
Transfers of residential real estate loans to mortgage loans held for sale		48,260
Transfers of residential real estate loans from mortgage loans held for sale		103
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 42	$ 513

Nature of Operations and Basis of Presentation	3 Months Ended
Nature of Operations and Basis of Presentation	Mar. 31, 2020
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 of 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 residential and commercial real estate loans, construction 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 30 branches of which 26 branches are located in San Francisco and Los Angeles, California with the remaining branches located in New York, New York, Southfield, Michigan and 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 The condensed consolidated balance sheet as of March 31, 2020, and the condensed consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the three months ended March 31, 2020 and 2019 are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, in the opinion of management, of a normal recurring nature that are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The financial data and other financial information disclosed in these notes to the condensed consolidated financial statements related to these periods are also unaudited. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020 or for any future annual or interim period. The consolidated balance sheet at December 31, 2019 included herein was derived from the audited financial statements as of that date. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

New Accounting Standards	3 Months Ended
New Accounting Standards	Mar. 31, 2020
New Accounting Standards
New Accounting Standards	Note 2—New Accounting Standards Recently Issued Accounting Guidance Not Yet Adopted 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. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances and recoveries, among other things. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. The amendments provide entities with an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis, upon adoption of Topic 326. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This update deferred the effective dates of Topic 326 to January 1, 2023 for certain entities including smaller reporting companies (as defined by the U.S. Securities and Exchange Commission (the “SEC”)). The Company, as a smaller reporting company as of the relevant measuring period, qualifies for this extension. At this time, the Company has formed a cross-functional implementation team consisting of individuals from credit, finance and information systems. The implementation team has been working with a software vendor to assist in implementing required changes to credit loss estimation models and processes. The historical data set for model development has been finalized, and the credit loss estimation models are in the process of being developed and tested. 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 cumulative adjustment or of the overall impact of ASU No. 2016-13 on its consolidated financial statements.

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 3—Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed 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 condensed 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. During 2020, economies throughout the world have been severely disrupted because of the outbreak of the novel coronavirus (“COVID-19”). The Company’s primary market areas of California, the greater Seattle market, and New York became part of several epicenters of the COVID-19 pandemic. Banking and financial services have been designated essential businesses and the Bank’s operations are continuing, subject to certain modifications to business practices imposed to safeguard the health and wellness of the Bank’s customers and employees, and to comply with applicable government directives. As of March 31, 2020, the impact of the outbreak of COVID-19 was continuing to unfold. As a result, many of management’s estimates and assumptions required increased judgement and carried a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, management’s estimates may change materially in future periods. Concentration of Credit Risk The loan portfolio consists primarily of residential real estate loans which are collateralized by real estate. At March 31, 2020 and December 31, 2019, residential real estate loans accounted for 83% and 85%, 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 March 31, 2020 and December 31, 2019, approximately 88% and 89%, respectively, of the loan portfolio was originated in California. Starting December 9, 2019, the Bank suspended its Advantage Loan Program and announced that it permanently discontinued this program on March 6, 2020. This Program was a material component of the Bank’s total loan originations. Loans under the Advantage Loan Program totaled $1,791,863, or 76% of residential loan portfolio, as of March 31, 2020, and $1,942,657, or 78% of residential loan portfolio, as of December 31, 2019.

Investment Securities

3 Months Ended

Mar. 31, 2020

Investment Securities

Investment Securities

Note 4—Investment Securities

Debt Securities

The following tables summarize the amortized cost and fair value of debt securities available for sale at March 31, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses:


	March 31, 2020
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury securities	$	95,949	$	917	$	—	$	96,866
Mortgage-backed securities		15,157		4		—		15,161
Collateralized mortgage obligations		41,458		226		(67)		41,617
Collateralized debt obligations		215		—		(26)		189
Total	$	152,779	$	1,147	$	(93)	$	153,833


	December 31, 2019
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury securities	$	122,634	$	170	$	(1)	$	122,803
Mortgage-backed securities		23,028		76		—		23,104
Collateralized mortgage obligations		1,138		45		—		1,183
Collateralized debt obligations		216		—		(17)		199
Total	$	147,016	$	291	$	(18)	$	147,289

All of the Company's mortgage-backed securities and the majority of the Company's collateralized mortgage obligations are issued and/or guaranteed by a U.S. government agency (Government National Mortgage Association) or a U.S. government-sponsored enterprise (Federal Home Loan Mortgage Corporation or Federal National Mortgage Association).

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 March 31, 2020 and December 31, 2019.

For the three months ended March 31, 2020, the proceeds from sales of debt securities available for sale were $23,044. The Company recorded gross realized gains of $235 and gross realized losses of $(2).

The amortized cost and fair value of debt securities available for sale issued by U.S. Treasury at March 31, 2020 are shown by contractual maturity. Mortgage-backed securities, 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	$	76,095	$	76,654
Due after one year through five years		19,854		20,212
Mortgage-backed securities		15,157		15,161
Collateralized mortgage obligations		41,458		41,617
Collateralized debt obligations		215		189
Total	$	152,779	$	153,833

The table summarizes debt securities available for sale, at fair value, with unrealized losses at March 31, 2020 and December 31, 2019 aggregated by major security type and length of time the individual securities have been in a continuous unrealized loss position, as follows:


	March 31, 2020
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Collateralized mortgage obligations	$	1,016	$	(67)	$	—	$	—	$	1,016	$	(67)
Collateralized debt obligations		—		—		189		(26)		189		(26)
Total	$	1,016	$	(67)	$	189	$	(26)	$	1,205	$	(93)


	December 31, 2019
	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	$	5,011	$	(1)	$	—	$	—	$	5,011	$	(1)
Collateralized debt obligations		—		—		199		(17)		199		(17)
Total	$	5,011	$	(1)	$	199	$	(17)	$	5,210	$	(18)

As of March 31, 2020, the debt securities portfolio consisted of 14 debt securities, with three 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. Non-agency collateralized mortgage obligations with a carrying value of $1,016 had an unrealized loss of $67 due to a temporary dislocation of the market for non-Agency mortgages and the corresponding effect on non-Agency securitizations as a result of the COVID-19 pandemic. These investments have historically been in a gain position, and is expected to recover within the coming months. All interest and dividends are considered taxable.

A collateralized debt obligation with a carrying value of $189 and $199 at March 31, 2020 and December 31, 2019, respectively, was rated high quality at inception, but it was subsequently rated by Moody’s as Ba1, which is defined as “speculative.” The issuers of the underlying investments (the collateral) of the collateralized debt obligation 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 collateralized debt obligation remained classified as available for sale and represented $26 and $17 of the unrealized losses reported at March 31, 2020 and December 31, 2019, respectively.

Equity Securities

Equity securities consist of an investment in a qualified community reinvestment act investment fund, which is a publicly-traded mutual fund, and an investment in Pacific Coast Banker’s Bank, a thinly traded, restricted stock. At March 31, 2020 and December 31, 2019, equity securities totaled $5,335 and $5,255, respectively. Equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income.

At March 31, 2020 and December 31, 2019, equity securities with readily determinable fair values were $5,089 and $5,009, respectively. The following is a summary of unrealized and realized gains and losses recognized in the condensed consolidated statements of income during the three months ended March 31, 2020 and 2019:


	Three Months Ended
	March 31,
	2020		2019
Net gains recorded during the period on equity securities	$	80	$	49
Less: net gains (losses) recorded during the period on equity securities sold during the period		—		—
Unrealized gains recorded during the period on equity securities held at the reporting date	$	80	$	49

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 both March 31, 2020 and December 31, 2019.

Loans

3 Months Ended

Mar. 31, 2020

Loans

Loans

Note 5—Loans

Major categories of loans were as follows:


	March 31,		December 31,
	2020		2019
Residential real estate	$	2,345,328	$	2,476,866
Commercial real estate		279,508		240,081
Construction		198,115		178,376
Commercial lines of credit		19,271		17,903
Other consumer		36		34
Total loans		2,842,258		2,913,260
Less: allowance for loan losses		(42,613)		(21,730)
Loans, net	$	2,799,645	$	2,891,530

Loans with carrying values of $1,157,536 and $933,747 were pledged as collateral on FHLB borrowings at March 31, 2020 and December 31, 2019, respectively.

The table presents the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2020 and 2019:


							Commercial
	Residential		Commercial				Lines of		Other
Three Months Ended March 31, 2020	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	12,336	$	5,243	$	3,822	$	328	$	1	$	—	$	21,730
Provision for loan losses		6,808		5,999		7,616		40		—		390		20,853
Charge offs		—		—		—		—		—		—		—
Recoveries		10		19		1		—		—		—		30
Total ending balance	$	19,154	$	11,261	$	11,439	$	368	$	1	$	390	$	42,613

							Commercial
	Residential		Commercial				Lines of		Other
Three Months Ended March 31, 2019	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	13,826	$	2,573	$	3,273	$	1,058	$	1	$	1,119	$	21,850
Provision (recovery) for loan losses		(343)		(253)		(558)		(58)		—		198		(1,014)
Charge offs		—		—		—		(176)		—		—		(176)
Recoveries		5		31		2		—		—		—		38
Total ending balance	$	13,488	$	2,351	$	2,717	$	824	$	1	$	1,317	$	20,698

The following tables present the balance in the allowance for loan losses and the recorded investment by portfolio segment and based on impairment method as of March 31, 2020 and December 31, 2019:


							Commercial
	Residential		Commercial				Lines of		Other
March 31, 2020	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	42	$	—	$	—	$	5	$	—	$	—	$	47
Collectively evaluated for impairment		19,112		11,261		11,439		363		1		390		42,566
Total ending allowance balance	$	19,154	$	11,261	$	11,439	$	368	$	1	$	390	$	42,613
Loans:
Loans individually evaluated for impairment	$	211	$	1,079	$	26,846	$	1,373	$	—	$	—	$	29,509
Loans collectively evaluated for impairment		2,345,117		278,429		171,269		17,898		36		—		2,812,749
Total ending loans balance	$	2,345,328	$	279,508	$	198,115	$	19,271	$	36	$	—	$	2,842,258


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2019	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	43	$	—	$	—	$	5	$	—	$	—	$	48
Collectively evaluated for impairment		12,293		5,243		3,822		323		1		—		21,682
Total ending allowance balance	$	12,336	$	5,243	$	3,822	$	328	$	1	$	—	$	21,730
Loans:
Loans individually evaluated for impairment	$	215	$	1,100	$	17,112	$	1,377	$	—	$	—	$	19,804
Loans collectively evaluated for impairment		2,476,651		238,981		161,264		16,526		34		—		2,893,456
Total ending loans balance	$	2,476,866	$	240,081	$	178,376	$	17,903	$	34	$	—	$	2,913,260

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


	At March 31, 2020						At December 31, 2019
	Unpaid				Allowance		Unpaid				Allowance
	Principal		Recorded		for Loan		Principal		Recorded		for Loan
	Balance		Investment		Losses		Balance		Investment		Losses
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	121	$	95	$	—	$	125	$	98	$	—
Commercial real estate, retail		1,292		1,079		—		1,308		1,100		—
Construction		26,889		26,846		—		17,156		17,112		—
Commercial lines of credit, private banking		1,245		1,242		—		1,245		1,245		—
Subtotal		29,547		29,262		—		19,834		19,555		—
With an allowance for loan losses recorded:
Residential real estate, first mortgage		116		116		42		116		117		43
Commercial lines of credit, private banking		131		131		5		132		132		5
Subtotal		247		247		47		248		249		48
Total	$	29,794	$	29,509	$	47	$	20,082	$	19,804	$	48

In the above tables, the unpaid principal balance is not reduced for partial charge offs. Also, the recorded investment excludes accrued interest receivable on loans which was not significant.


	Three Months Ended March 31,
	2020						2019
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	96	$	—	$	—	$	107	$	—	$	—
Commercial real estate:
Retail		1,089		15		10		1,165		15		10
Multifamily		—		—		—		1,080		12		8
Offices		—		—		—		1,516		25		17
Construction		26,653		466		269		9,325		146		97
Commercial lines of credit:
Private banking		1,243		21		14		—		—		—
C&I lending		—		—		—		100		2		1
Subtotal		29,081		502		293		13,293		200		133
With an allowance for loan losses recorded:
Residential real estate, first mortgage		117		1		1		120		1		1
Commercial lines of credit, private banking		131		2		1		139		2		1
Subtotal		248		3		2		259		3		2
Total	$	29,329	$	505	$	295	$	13,552	$	203	$	135

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 table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2020 and December 31, 2019:


	March 31, 2020				December 31, 2019
			Loans Past				Loans Past
			Due Over				Due Over
			90 Days Still				90 Days Still
	Nonaccrual		Accruing		Nonaccrual		Accruing
Residential real estate:
Residential first mortgage	$	15,768	$	48	$	14,482	$	50
Residential second mortgage		505		—		210		—
Commercial real estate:
Retail		35		—		40		—
Total	$	16,308	$	48	$	14,732	$	50

The following tables present the aging of the recorded investment in past due loans as of March 31, 2020 and December 31, 2019 by class of loans:


					Greater
	30 - 59		60 - 89		than
	Days		Days		89 Days		Total		Loans Not
March 31, 2020	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	29,528	$	12,668	$	15,816	$	58,012	$	2,262,732	$	2,320,744
Residential second mortgage		477		127		505		1,109		23,475		24,584
Commercial real estate:
Retail		—		—		35		35		17,995		18,030
Multifamily		979		—		—		979		92,293		93,272
Offices		—		—		—		—		27,822		27,822
Hotels/Single room occupancy hotels		13,538		—		—		13,538		59,949		73,487
Industrial		—		—		—		—		14,089		14,089
Other		—		—		—		—		52,808		52,808
Construction		20,214		—		—		20,214		177,901		198,115
Commercial lines of credit:
Private banking		—		—		—		—		10,874		10,874
C&I lending		—		—		—		—		8,397		8,397
Other consumer		—		—		—		—		36		36
Total	$	64,736	$	12,795	$	16,356	$	93,887	$	2,748,371	$	2,842,258


					Greater
	30 - 59		60 - 89		than
	Days		Days		89 Days		Total		Loans Not
December 31, 2019	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	36,112	$	5,112	$	14,532	$	55,756	$	2,396,800	$	2,452,556
Residential second mortgage		97		295		210		602		23,708		24,310
Commercial real estate:
Retail		—		—		40		40		6,089		6,129
Multifamily		—		—		—		—		64,873		64,873
Offices		—		—		—		—		28,048		28,048
Hotel/Single room occupancy hotels		5,605		—		—		5,605		76,165		81,770
Industrial		—		—		—		—		14,150		14,150
Other		—		—		—		—		45,111		45,111
Construction		15,008		—		—		15,008		163,368		178,376
Commercial lines of credit:
Private banking		—		—		—		—		11,914		11,914
C&I lending		1,249		—		—		1,249		4,740		5,989
Other consumer		—		—		—		—		34		34
Total	$	58,071	$	5,407	$	14,782	$	78,260	$	2,835,000	$	2,913,260

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 loans, 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.

As a response to COVID-19, the Company has offered forbearance under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to customers facing COVID-19 related financial difficulties. The Company is not adjusting the aging of loans for customers granted a payment deferral in response to COVID-19. These loans remain in the aging category that was applicable at the time of payment deferral. Interest continues to accrue on these loans.

Troubled Debt Restructurings

At March 31, 2020 and December 31, 2019, the balance of outstanding loans identified as troubled debt restructurings was $24,563 and $13,708, respectively. The allocated portion of the allowance for loan losses with respect to these loans was $47 and $48 at March 31, 2020 and December 31, 2019, respectively. There were no loans identified as troubled debt restructurings that subsequently defaulted.

During the three months ended March 31, 2020, the Bank modified the terms of two construction loans and one private banking loan with 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 were $10,863 both before and after modification. During the three months ended March 31, 2019, the Bank modified the terms of a construction loan 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 outstanding recorded investment was $1,046 both before and after modification. The effect of the modification on the allowance for loan losses was not significant.

The terms of certain other loans have been modified during the three months ended March 31, 2020 and 2019 that did not meet the definition of a troubled debt restructuring. These other loans that were modified were not considered significant.

Certain provisions of the CARES Act encourage financial institutions to practice prudent efforts to work with borrowers impacted by COVID-19. Under these provisions, a modification deemed to be COVID-19 related would not be considered a troubled debt restructuring if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. The banking regulators issued similar guidance, which also clarified that a COVID-19 related modification should not be considered a troubled debt restructuring if the borrower was current on payments at the time the underlying loan modification program was implemented and if the modification is considered to be short-term. Under these terms, the Company had implemented a COVID-19 forbearance program that generally provides for principal and interest forbearance for 120 days to residential and commercial borrowers and these loans were not considered troubled debt restructurings. As of March 31, 2020, the Company had received approximately 150 forbearance requests under this program with an aggregate loan balance of $70,288, the vast majority of which were in the process of review as of that date. As of September 30, 2020, the Company approved 245 forbearance requests on loans totaling $114,989. Of these, 116 loans, totaling $69,828 have completed the agreed-upon deferment period and have returned to normal debt service. There are 62 loans that remain in payment deferral totaling $75,161.

Foreclosure Proceedings

At March 31, 2020 and December 31, 2019, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process is $8,132 and $1,643, respectively.

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 at least quarterly. The Company uses the following definitions for risk ratings:

Pass: Loans are of satisfactory quality.

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

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

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

At March 31, 2020 and December 31, 2019, the risk rating of loans by class of loans was as follows:


			Special
March 31, 2020	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	2,304,928	$	—	$	15,459	$	357	$	2,320,744
Residential second mortgage		24,079		—		505		—		24,584
Commercial real estate:
Retail		16,118		833		1,079		—		18,030
Multifamily		84,601		7,118		1,553		—		93,272
Offices		24,343		—		3,479		—		27,822
Hotels/Single room occupancy hotels		28,205		15,355		29,927		—		73,487
Industrial		5,888		—		8,201		—		14,089
Other		45,468		916		6,424		—		52,808
Construction		163,679		14,539		19,897		—		198,115
Commercial lines of credit:
Private banking		9,632		1,242		—		—		10,874
C&I lending		7,015		1,382		—		—		8,397
Other consumer loans		36		—		—		—		36
Total	$	2,713,992	$	41,385	$	86,524	$	357	$	2,842,258


			Special
December 31, 2019	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	2,438,024	$	—	$	14,077	$	455	$	2,452,556
Residential second mortgage		24,100		—		210		—		24,310
Commercial real estate:
Retail		4,195		834		1,100		—		6,129
Multifamily		56,164		7,150		1,559		—		64,873
Offices		24,484		645		2,919		—		28,048
Hotels/Single room occupancy hotels		60,074		18,189		3,507		—		81,770
Industrial		5,894		8,256		—		—		14,150
Other		37,693		920		6,498		—		45,111
Construction		156,339		7,008		15,029		—		178,376
Commercial lines of credit:
Private banking		10,669		1,245		—		—		11,914
C&I lending		4,013		—		1,976		—		5,989
Other consumer		34		—		—		—		34
Total	$	2,821,683	$	44,247	$	46,875	$	455	$	2,913,260

During the three months ended March 31, 2019, the Bank sold pools of residential real estate mortgages for $49,891 to third-party investors. The transactions resulted in full de-recognition of the mortgages (i.e. transferred assets) from the condensed consolidated balance sheets and recognition of gain on sale of portfolio loans of $2,442. After the sales, the Bank’s only continuing involvement in the transferred assets is to act as servicer or subservicer of the mortgages. For more information on repurchase exposures, see Note 16— Commitments and Contingencies.

Mortgage Servicing Rights, net

3 Months Ended

Mar. 31, 2020

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 condensed consolidated balance sheets. The principal balance of these loans at March 31, 2020 and December 31, 2019 are as follows:


	March 31,		December 31,
	2020		2019
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	136,184	$	130,425
FHLB		87,753		86,778
Private investors		610,094		656,035
Total	$	834,031	$	873,238

Custodial escrow balances maintained with these serviced loans were $7,122 and $7,688 at March 31, 2020 and December 31, 2019, respectively.

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


	Three Months Ended
	March 31,
	2020		2019
Mortgage servicing rights:
Beginning of period	$	10,845	$	10,733
Additions		107		843
Amortization		(650)		(684)
End of period		10,302		10,892

Valuation allowance at beginning of period		1,080		100
Additions (recoveries)		1,246		37
Valuation allowance at end of period		2,326		137

Mortgage servicing rights, net	$	7,976	$	10,755

Servicing fee income, net of amortization of servicing rights and changes in the valuation allowance, was $(911) and $325 for the three months ended March 31, 2020 and 2019, respectively.

The fair value of mortgage servicing rights was $8,119 and $10,271 at March 31, 2020 and December 31, 2019, respectively. The fair value of mortgage servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the estimate of the fair value of mortgage servicing rights. The fair value at March 31, 2020 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds ranging from 7.3% to 47.8%, depending on the stratification of the specific right, and a weighted average default rate of 0.2%. The fair value at December 31, 2019 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds ranging from 6.8% to 47.1%, depending on the stratification of the specific right, and a weighted average default rate of 0.2%.

At March 31, 2020 and December 31, 2019, the carrying amount of certain individual groupings exceeded their fair values. See Note 13—Fair Values of Financial Instruments.

Deposits	3 Months Ended
Deposits	Mar. 31, 2020
Deposits
Deposits	Note 7—Deposits Time deposits, included in interest‑bearing deposits, were $1,377,610 and $1,154,076 at March 31, 2020 and December 31, 2019, respectively. Time deposits included brokered deposits of $167,751 and $25,000 at March 31, 2020 and December 31, 2019, respectively. Time deposits that meet or exceed the FDIC insurance limit of $250 were $335,218 and $283,457 at March 31, 2020 and December 31, 2019, respectively.

FHLB Borrowings

3 Months Ended

Mar. 31, 2020

FHLB Borrowings

FHLB Borrowings

Note 8—FHLB Borrowings

FHLB borrowings at March 31, 2020 and December 31, 2019 consist of the following:


	March 31,			December 31,
	2020		Interest Rates	2019		Interest Rates
Long-term fixed rate advances	$	329,000	0.43%-1.96%	$	229,000	1.07%-1.96%

FHLB Advances

The long-term fixed rate advances have maturity dates ranging from July 2020 to February 2030. 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 March 31, 2020, advances totaling $307,000 were callable by the FHLB as follows: $100,000 in August 2020; $67,000 in September 2021; $90,000 in October 2021; and $50,000 in May 2024. At March 31, 2020, the Bank had additional borrowing capacity of $430,153 from the FHLB.

FHLB Overdraft Line of Credit

The Bank has established an overdraft line of credit agreement with the FHLB providing maximum borrowings of $50,000. The average amount outstanding during the three months ended March 31, 2020 and 2019 was $5 and $4,133, respectively. Borrowings accrue interest based on a variable rate based on the FHLB’s overnight cost of funds rate, which was 0.53% and 1.99% at March 31, 2020 and December 31, 2019, respectively. The agreement has a one-year term and terminates in October 2020.

The FHLB advances and the overdraft line of credit are collateralized by pledged loans totaling $1,157,536 and $933,747 at March 31, 2020 and December 31, 2019, respectively.

Other Borrowings

The Bank had available unsecured credit lines with other banks totaling $70,000 at both March 31, 2020 and December 31, 2019. There were no borrowings under these credit lines during the three months ended March 31, 2020 or the year ended December 31, 2019.

Subordinated Notes, net

3 Months Ended

Mar. 31, 2020

Subordinated Notes, net

Subordinated Notes, net

Note 9—Subordinated Notes, net

The subordinated notes (the "Notes") were as follows:


	March 31,		December 31,
	2020		2019
7.0% fixed to floating rate subordinated notes	$	65,000	$	65,000
Unamortized note premium		458		474
Unamortized debt issuance costs		(240)		(295)
Total	$	65,218	$	65,179

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 London Interbank Offered Rate (“LIBOR”) rate plus a margin of 5.82%. Premiums and debt issuance costs are amortized over the contractual term of the Notes into interest expense using the effective interest method. Interest expense on these Notes was $1,177 and $1,174 for the three months ended March 31, 2020 and 2019, 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 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 14—Regulatory Capital Requirements.

Stock Repurchase Program	3 Months Ended
Stock Repurchase Program	Mar. 31, 2020
Stock Repurchase Program
Stock Repurchase Program	Note 10—Stock Repurchase Program In late 2018, the board of directors approved the repurchase of up to $50,000 of the Company’s outstanding shares of common stock. The stock repurchase program permits the Company to purchase shares of its common stock from time to time in the open market or in privately negotiated transactions. The program does not have an expiration date. The Company received regulatory approval of its stock repurchase program and publicly announced the program in January 2019. Under this program, the Company is not obligated to repurchase shares of its common stock. The repurchased shares will be canceled and returned to authorized but unissued status. During the three months ended March 31, 2020, the Company repurchased and cancelled 10,912 shares of its common stock for $82, including commissions and fees (average repurchase price of $7.57 per share). Such repurchases of common stock were funded through cash generated from operations. As of March 31, 2020, the Company had $19,568 of common stock purchases remaining that may be made under the program. In March 2020, in connection with the issues giving rise to the internal review of the Advantage Loan Program (the “Internal Review”), the Company suspended the stock repurchase program for at least the near term.

Stock-based Compensation

3 Months Ended

Mar. 31, 2020

Stock-based Compensation

Stock-based Compensation

Note 11—Stock-based Compensation

The board of directors established a 2017 Omnibus Equity Incentive Plan (the “Plan”) which was approved by the shareholders. 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. Stock option awards granted prior to 2020 generally vest in installments of 50% in each of the third and fourth year after the date of grant, while stock options awards granted beginning in 2020 will vest ratably over three years (33% per year) after the date of grant. All stock option awards 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 2, 2020, the board of directors approved the issuance of options to purchase 67,361 shares of common stock with an exercise price of $7.10 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 $1.78 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	$	7.10
Risk-free interest rate		0.94	%
Expected term (in years)		6.00
Expected stock price volatility		26.45	%
Dividend yield		.56	%

A summary of the Company's stock option activity as of and for the three months ended March 31, 2020 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term	Value
				(Years)
Outstanding at January 1, 2020	142,477	$	12.29	8.60	$	—
Granted	67,361		7.10
Exercised	—		—
Forfeited /expired	(8,673)		11.78
Outstanding at March 31, 2020	201,165	$	10.57	8.88	$	—

The Company recorded stock-based compensation expense associated with stock options of $26 and $32 for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020, there was $422 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.51 years. No options are exercisable at March 31, 2020.

Restricted Stock Awards

On March 2, 2020, the board of directors approved the issuance of 141,374 restricted stock awards to certain key employees. The restricted stock awards vest ratably over three years (33% per year) after the date of grant. Upon a change in control, as defined in the Plan, the outstanding restricted stock awards will immediately vest. 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.

A summary of the Company's restricted stock awards activity for the three months ended March 31, 2020 is as follows:


		Weighted Average
	Number	Grant Date Fair
	of Shares	Value

Nonvested at January 1, 2020	100,096	$	11.02
Granted	141,374		6.98
Vested	—		—
Forfeited	(7,197)		11.35
Nonvested at March 31, 2020	234,273	$	8.57

The fair value of the award is recorded as compensation expense on a straight-line basis over the vesting period. The Company recorded stock-based compensation expense associated with restricted stock awards of $83 and $94 for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020, there was $1,557 of total unrecognized compensation cost related to the nonvested stock granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.78 years.

Income (Loss) Per Share

3 Months Ended

Mar. 31, 2020

Income (Loss) Per Share

Income (Loss) Per Share

Note 12—Income (Loss) 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 (loss) per share, basic and diluted:


	Three Months Ended
	March 31,
	2020		2019
Numerator:
Net income (loss)	$	(4,030)	$	15,683

Denominator:
Weighted average common shares outstanding, basic		49,837,662		52,554,446
Weighted average effect of potentially dilutive common shares:
Stock options		—		—
Restricted stock		—		8,374
Weighted average common shares outstanding, diluted		49,837,662		52,562,820

Income (loss) per share:
Basic	$	(0.08)	$	0.30
Diluted	$	(0.08)	$	0.30

For the three months ended March 31, 2020, the effect of 234,273 nonvested restricted shares of common stock and 201,165 options to purchase shares of common stock were excluded in computing diluted income per common share, as the inclusion would be antidilutive. For the three months ended March 31, 2019, the effect of 104,244 nonvested restricted shares of common stock and 177,514 options to purchase shares of common stock were excluded in computing diluted income per common share, as the inclusion would be antidilutive.

Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2020

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Note 13—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 condensed 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 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 analysis. Rating agency and industry research reports as well as defaults and deferrals on individual investment securities are reviewed and incorporated into the calculations.

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 5, 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 March 31, 2020 and December 31, 2019:


	Fair Value Measurements at
	March 31, 2020
			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	$	96,866	$	96,866	$	—	$	—
Mortgage-backed securities		15,161		—		15,161		—
Collateralized mortgage obligations		41,617		—		41,617		—
Collateralized debt obligations		189		—		—		189
Equity securities		5,089		5,089		—		—


	Fair Value Measurements at
	December 31, 2019
			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	$	122,803	$	122,803	$	—	$	—
Mortgage-backed securities		23,104		—		23,104		—
Collateralized mortgage obligations		1,183		—		1,183		—
Collateralized debt obligations		199		—		—		199
Equity securities		5,009		5,009		—		—

The table below presents a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at March 31, 2020 and 2019:


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Collateralized Debt Obligations
	March 31, 2020		March 31, 2019
Balance of recurring Level 3 assets at beginning of period	$	199	$	297
Total gains or losses (realized/unrealized):
Included in income-realized		—		—
Included in other comprehensive income (loss)		(9)		(6)
Principal maturities/settlements		(1)		(1)
Sales		—		—
Transfers in and/or out of Level 3		—		—
Balance of recurring Level 3 assets at end of period	$	189	$	290

Unrealized losses on Level 3 investments for collateralized debt obligations was $26 and $17 at March 31, 2020 and December 31, 2019, respectively. In addition to the amounts included in income as presented in the table above, interest income recorded on collateralized debt obligations was $2 and $4 for the three months ended March 31, 2020 and 2019, respectively.

The fair value of the collateralized debt obligations is obtained from third party pricing information. It is determined by calculating discounted cash flows using LIBOR curves plus spreads that adjust for credit risk and illiquidity. The Company also performs an internal analysis that considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers to corroborate the information used from the independent third party.

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 condensed consolidated balance sheet at March 31, 2020 and December 31, 2019, the following table provides the level of valuation assumptions used to determine each adjustment and the related carrying value:

Fair Value Measurements at March 31, 2020

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

7,466

—

7,466

Fair Value Measurements at December 31, 2019

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

7,949

—

7,949

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 March 31, 2020 and December 31, 2019:


	Quantitative Information about Level 3 Fair Value Measurements at March 31, 2020
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average) (1)
Mortgage servicing rights	$	7,466	Discounted cash flow	Discount rate	9.5% - 12.0% (11.7%)
				Prepayment speed	7.8% - 47.8% (22.5%)
				Default rate	0.1% - 0.3% (0.2%)

(1) The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average) (1)
Mortgage servicing rights	$	7,949	Discounted cash flow	Discount rate	9.5% - 12.0% (11.9%)
				Prepayment speed	7.2% - 47.1% (21.3%)
				Default rate	0.1% - 0.3% (0.2%)

(1) The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

Fair Value of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not carried at fair value at March 31, 2020 and December 31, 2019, are as follows:


	Fair Value Measurements at March 31, 2020
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	391,009	$	391,009	$	391,009	$	—	$	—
Interest-bearing time deposits with other banks		1,025		1,031		—		1,031		—
Mortgage loans held for sale		3,776		3,890		—		3,890		—
Loans, net		2,799,645		2,840,329		—		—		2,840,329

Financial Liabilities
Time deposits		1,377,610		1,383,282		—		1,383,282		—
Federal Home Loan Bank borrowings		329,000		344,961		—		344,961		—
Subordinated notes, net		65,218		59,150		—		59,150		—


	Fair Value Measurements at December 31, 2019
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	77,819	$	77,819	$	77,819	$	—	$	—
Interest-bearing time deposits with other banks		1,025		1,025		1,025		—		—
Mortgage loans held for sale		1,337		1,368		—		1,368		—
Loans, net		2,891,530		2,978,846		—		—		2,978,846

Financial Liabilities
Time deposits		1,154,076		1,161,490		—		1,161,490		—
Federal Home Loan Bank borrowings		229,000		227,333		—		227,333		—
Subordinated notes, net		65,179		65,650		—		65,650		—

- 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

Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2020

Regulatory Capital Requirements

Regulatory Capital Requirements

Note 14—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 condensed 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.

Under the Basel III rules, the Company must hold a capital conservation buffer over the adequately capitalized risk-based capital ratios. At present, in order to avoid the imposition of restrictions on capital distributions and discretionary bonus payments, the Company in required to maintain a capital conservation buffer of at least 2.50%. The net unrealized gain or loss on investment securities is not included in regulatory capital. Banking organizations are required to maintain a minimum total capital ratio of 10.5%, a minimum Tier 1 capital ratio of 8.5% and a minimum common equity Tier 1 capital ratio of 7.0%, respectively (in each case accounting for the required capital conservation buffer). Management believes that at March 31, 2020, the Company and the Bank meet all regulatory capital requirements to which they are subject.

The holding company contributed $50,000 of capital into the Bank during the three months ended March 31, 2020. At March 31, 2020 and December 31, 2019, the Bank exceeded all capital requirements to be categorized as well-capitalized and the Company exceeded the applicable 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 March 31, 2020 and December 31, 2019 are as follows:


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
March 31, 2020
Total adjusted capital to risk-weighted assets
Consolidated	$	413,905	21.15	%	$	156,553	8.00	%		N/A	N/A
Bank		396,945	20.37			155,911	8.00		$	194,889	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		327,917	16.76			117,415	6.00			N/A	N/A
Bank		372,307	19.10			116,933	6.00			155,809	8.00
Common Equity Tier 1 (CET1)
Consolidated		327,917	16.76			88,061	4.50			N/A	N/A
Bank		372,307	19.10			87,700	4.50			126,595	6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated		327,917	9.95			131,795	4.00			N/A	N/A
Bank		372,307	11.31			131,681	4.00			164,337	5.00


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2019
Total adjusted capital to risk-weighted assets
Consolidated	$	419,327	21.49	%	$	156,081	8.00	%		N/A	N/A
Bank		346,985	17.82			155,809	8.00		$	194,761	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		332,418	17.04			117,061	6.00			N/A	N/A
Bank		325,255	16.70			116,857	6.00			155,809	8.00
Common Equity Tier 1 (CET1)
Consolidated		332,418	17.04			87,796	4.50			N/A	N/A
Bank		325,255	16.70			87,643	4.50			126,595	6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated		332,418	10.11			131,471	4.00			N/A	N/A
Bank		325,255	9.90			131,469	4.00			164,337	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. Approval by regulatory authorities is required if the total capital distributions for the applicable calendar year exceed the sum of the Bank’s net income for that year to date plus the Bank’s retained net income for the preceding two years, or the Bank would not be at least adequately capitalized following the distribution.

The Qualified Thrift Lender (“QTL”) test requires that a minimum of 65% of assets be maintained in “qualified thrift investments”, including mortgage loans, housing- and real estate-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. Also, pursuant to the terms of the subordinated note agreements, the Company may pay dividends if it is “well capitalized” as defined by regulatory guidelines.

At March 31, 2020, the Bank has the ability to pay aggregate dividends of approximately $79,036 to the Company without prior regulatory approval.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ 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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&loc=d3e65071-112826

+ Details

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2020
Related Party Transactions
Related Party Transactions	Note 15—Related Party Transactions From time to time, the Company makes charitable contributions to a foundation for which certain members of the boards of directors of the Company and Bank, and who are also related to the Company’s controlling shareholders, serve as trustees. The Company paid $225 to the foundation during both the three months ended March 31, 2020 and 2019. The Bank provides monthly data processing and programming services to entities controlled by the Company’s controlling shareholders. Aggregate fees received for such services amounted to $27 during both the three months ended March 31, 2020 and 2019. The Company leases certain storage and office space from entities owned by the Company’s controlling shareholders. Amounts paid under such leases totaled $60 and $59 during the three months ended March 31, 2020 and 2019, respectively. The Company also subleases certain office space to entities owned by the Company’s controlling shareholders. Amounts received under such subleases totaled $69 and $68 during the three months ended March 31, 2020 and 2019, respectively.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies

Commitments and Contingencies

Note 16—Commitments and Contingencies

Financial Instruments with Off-Balance Sheet Risk

The Bank is a party to financial instruments with off-balance sheet 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 condensed consolidated financial statements.

Unfunded Commitments to Extend Credit

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

The commitments outstanding to make loans include primarily residential real estate loans that are made for a period of 90 days or less. At March 31, 2020, outstanding commitments to make loans consisted of fixed rate loans of $49,123 with interest rates ranging from 2.375% to 4.50% and maturities ranging from 15 years to 30 years and variable rate loans of $38,640 with varying interest rates (ranging from 3.375% to 6.75% at March 31, 2020) and maturities ranging from 15 to 30 years.

Unused Lines of Credit

The Bank also issues unused lines of credit to meet customer financing needs. At March 31, 2020, the unused lines of credit include residential second mortgages of $20,283, construction loans of $212,448, commercial lines of credit of $11,716 and consumer loans of $401. These unused lines of credit consisted of fixed rate loans of $438 with interest rates ranging from 5.25% to 18.0% and maturities ranging from three months to 7 years and variable rate loans of $244,410 with varying interest rates (ranging from 3.25% to 8.5%) and maturities ranging from one month to 15 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 March 31, 2020 and December 31, 2019:


	March 31,		December 31,
	2020		2019
Commitments to make loans	$	87,762	$	76,927
Unused lines of credit		244,848		220,553
Standby letters of credit		24		24

Legal Proceedings

The Bank is currently under formal investigation by the OCC and continues to be subject to a publicly available formal agreement with the OCC, dated June 18, 2019 (the “OCC Agreement”), relating primarily to certain aspects of its Bank Secrecy Act/Anti-Money Laundering compliance program as well as the Bank’s credit administration. The OCC Agreement generally requires that the Bank enhance its policies and procedures to ensure compliance with BSA/AML laws and regulations and ensure effective controls over residential loan underwriting. Specifically, the OCC Agreement requires the Bank to: (i) establish a compliance committee to monitor and oversee the Bank’s compliance with the provisions of OCC Agreement; (ii) develop a revised customer due diligence and enhanced due diligence program; (iii) develop a revised suspicious activity monitoring program; (iv) engage an independent, third-party consultant to review and provide a written report on the Bank’s suspicious activity monitoring; (v) develop revised policies and procedures to ensure effective BSA/AML model risk management for the Bank’s automated suspicious activity monitoring system, which must be validated by a qualified, independent third party; (vi) ensure that the Bank’s BSA Department maintains sufficient personnel; and (vii) develop revised policies and procedures to ensure effective controls over loan underwriting. In addition to these requirements, while the OCC Agreement remains in effect, the Bank is subject to certain restrictions on expansion activities, such as growth through acquisition or branching to supplement organic growth of the Bank. Further, any failure to comply with the requirements of the OCC Agreement could result in further enforcement actions, the imposition of material restrictions on the activities of the Bank, or the assessment of fines or penalties. The Bank established a Compliance Committee to monitor and assure compliance with the OCC Agreement, oversee the completion of an independent review of account and transaction activity to be conducted by a third party vendor, and engage a third party to conduct a model validation for its BSA/AML monitoring software.

The Bank is fully cooperating with the OCC investigation and implementing the items necessary to achieve compliance with the obligations in the OCC Agreement. A finding by the OCC that the Bank failed to comply with the OCC Agreement or adverse findings in the OCC investigation could result in additional regulatory scrutiny, constraints on the Bank’s business, or other formal enforcement action. Any of those events could have a material adverse effect on our future operations, financial condition, growth, or other aspects of our business. The Bank has incurred significant costs in its efforts to comply with the OCC Agreement and respond to the OCC investigation, which are reflected in the Company’s results of operations for the first quarter of 2020.

The Bank also has received grand jury subpoenas from the United States Department of Justice (the “DOJ”) beginning in 2020 requesting the production of documents and information in connection with an investigation that appears to be focused on the Bank’s residential lending practices and related issues. The Bank is fully cooperating with this ongoing investigation. Adverse findings in the DOJ investigation could result in material losses due to damages, penalties, costs, and/or expenses imposed on the Company, which could have a material adverse effect on our future operations, financial condition, growth, or other aspects of our business. The Bank expects to incur significant costs in its efforts to comply with the DOJ investigation in 2020.

In addition, the Company, certain of its current and former officers and directors, and other parties have been named as defendants in a shareholder class action captioned Oklahoma Police Pension and Retirement System v. Sterling Bancorp, Inc., et al., Case No. 5:20-cv-10490-JEL-EAS, filed on February 26, 2020 in the United States District Court for the Eastern District of Michigan. The plaintiffs filed an amended complaint on July 2, 2020. This action alleges violations of the federal securities laws, primarily with respect to disclosures concerning the Bank’s residential lending practices that were made in the Company’s registration statement and prospectus for its initial public offering, in subsequent press releases, in periodic and other filings with the SEC, and during earnings calls. The Company filed a motion to dismiss the amended complaint with the court on September 22, 2020. The Company intends to vigorously defend this and any related actions.

On December 9, 2019, the Company announced it had voluntarily suspended its Advantage Loan Program in connection with an internal review of the program (the “Internal Review”). The primary focus of the Internal Review, which has been led by outside legal counsel under the direction of a special committee of independent directors (the “Special Committee”), has involved the origination of residential mortgage loans under the Advantage Loan Program and related matters. Results from the Special Committee’s Internal Review have indicated that certain employees engaged in misconduct in connection with the origination of a significant number of such loans, including with respect to verification of income, the amount of income reported for borrowers, reliance on third parties, and related documentation. As a result, the Company has permanently discontinued the Advantage Loan Program. While the Internal Review is substantially complete, the Company expects it to remain open during the pendency of the government investigations discussed herein, and it is possible additional work will be required in connection with the Internal Review.

As of December 31, 2019, the Company established a liability of $25,000 for contingent losses based on additional information obtained during the course of the Internal Review and significant judgments by management. The Company has maintained the same level of liability for contingent losses at March 31, 2020. The outcome of the pending investigations and litigation is uncertain. There can be no assurance (i) that the Company will not incur material losses due to damages, penalties, costs and/or expenses as a result of such investigations and litigation, (ii) that the accrual for contingent losses will be sufficient to cover such losses, or (iii) that such losses will not materially exceed such accrual and have a material impact on the Company’s financial condition or results of operations.

In addition, on July 28, 2020, the Company received a demand letter from two law firms representing a purported stockholder of the Company alleging facts and claims substantially the same as many of the alleged facts and claims in the class action lawsuit. The demand letter requests that the board of directors take action to (1) recover damages the Company has purportedly sustained as a result of alleged breaches of fiduciary duties by certain of its officers and directors; (2) recover for the benefit of the Company the amounts by which certain of its officers and directors purportedly were unjustly enriched; and (3) correct alleged deficiencies in the Company's internal controls. The demand letter states that, if the board of directors has not taken the actions demanded within 90 days after the receipt of the letter, or in the event the board of directors refuses to take the actions demanded, the purported stockholder will commence a stockholder derivative action on behalf of the Company seeking appropriate relief. The board of directors has recently established a demand review committee to evaluate the matters raised in the demand letter and to determine the actions, if any, that should be taken by the Company with respect to those matters. The Company has responded to the demand letter advising the purported shareholder of the appointment of the demand review committee. There can be no assurance as to whether any litigation will be commenced by or against the Company with respect to the claims set forth in the demand letter or that, if any such litigation is commenced, it will not have a material impact on our financial condition or results of operations.

Mortgage Loan Repurchase Liability

During the period 2015 through 2019, the Company sold portfolio loans originated under the Advantage Loan Program to private investors in the secondary market. The Company also sells conventional residential mortgage loans (which excludes Advantage Loan Program loans) in the secondary market primarily to Federal National Mortgage Association (“Fannie Mae”) on an ongoing basis. In connection with these loans sold, the Company makes customary representations and warranties about various characteristics of each loan. The Company may be required pursuant to the terms of the applicable mortgage loan purchase and sale agreements to repurchase any previously sold loan or indemnify (make whole) the investor for which the representation or warranty of the Company proves to be inaccurate, incomplete or misleading. In the event of a repurchase, the Company is typically required to pay the unpaid principal balance, the proportionate premium received when selling the loans and certain expenses. Historically, any repurchases due to a breach of any such representations and warranties have been de minimis.

The Bank recorded a total mortgage repurchase liability of $7,823 at December 31, 2019 primarily related to probable losses on the sold Advantage Loan Program loan portfolio taking into account the results of the Internal Review. The Bank has maintained the same level of mortgage repurchase liability at March 31, 2020. The repurchase liability is included in accrued expenses and other liabilities in the condensed consolidated balance sheets. The unpaid principal balance of residential mortgage loans sold that were subject to potential repurchase obligations for breach of representations and warranties totaled $713,427 and $759,568 at March 31, 2020 and December 31, 2019, respectively.

The repurchase liability reflects management’s estimate of losses based on a combination of factors. The Company’s estimation process requires management to make subjective and complex judgements about matters that are inherently uncertain, such as future repurchase demand expectations, economic factors, and findings from the Internal Review. The actual repurchase losses could vary significantly from the recorded repurchase liability, depending on the outcome of various factors, including those previously discussed.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2020
Subsequent Events
Subsequent Events	Note 17—Subsequent Events Repurchases of Mortgage Loans In May 2020, the Company negotiated the repurchases of two pools of Advantage Loan Program loans sold to the secondary market with a total outstanding unpaid principal balance of $38,704. The Company recognized a loss of $136 in other non-interest expense in connection with this repurchase. These loans were previously sold to such third-party investors with servicing retained and were considered to be performing at the acquisition date. In addition, to avoid the uncertainty of audits and inquiries by third-party investors in Advantage Loan Program loans sold to the secondary market, beginning at the end of the second quarter of 2020, the Company commenced making offers to each of those investors to repurchase 100% of our sold Advantage Loan Program loan portfolio. In July 2020, three third-party investors accepted the above mentioned offer, from which the Company repurchased three pools of Advantage Loan Program loans sold with a total outstanding unpaid principal balance of $19,251. The Company recognized a loss of $135 in other non-interest expense and charged a loss of $433 against mortgage repurchase liability in connection with this repurchase. These loans were previously sold to such third-party investors with servicing retained and were considered to be performing at the acquisition date. Executive Transition The Company experienced significant executive transitions in late 2019 continuing through the first half of 2020. On May 7, 2020, Thomas Lopp resigned from each of his positions with the Company, including Chairman, President and Chief Executive Officer, and the board of directors appointed Stephen Huber as interim Chief Executive Officer in addition to his existing role as Chief Financial Officer. On May 29, 2020, Michael Montemayor was terminated from his positions as President of Commercial and Retail Banking and Chief Lending Officer. Effective June 3, 2020, the Company and the Bank appointed Thomas M. O’Brien as Chairman, President and Chief Executive Officer of the Company and the Bank, respectively. Mr. Huber continued in his role as Chief Financial Officer following the appointment of Mr. O’Brien. Stock-based Compensation Effective June 3, 2020, the Company and the Bank appointed Thomas M. O'Brien as Chairman, President and Chief Executive Officer of the Company and the Bank, respectively. In connection with Mr. O’Brien entering into an Employment Agreement with the Company on May 31, 2020, on June 5, 2020 the Company granted Mr. O’Brien options to purchase 300,000 shares of common stock with an exercise price of $4.00 per share. The options vest 1/3 on January 1, 2021, 1/3 on the first anniversary of the date of grant, and 1/3 on January 1, 2022 subject to his remaining employed on the vesting date; provided that the unvested portion of the Option would vest immediately in full upon Mr. O’Brien’s termination of employment due to “death” or “disability” and would vest immediately in full upon a “change of control” (each, as defined in Mr. O’Brien’s Employment Agreement). In the event of termination of employment other than termination for “cause” (as defined in Mr. O’Brien’s Employment Agreement), if the Option is exercisable at the time of such termination of employment, it will remain exercisable for three years following termination, provided that Mr. O’Brien remains in compliance with certain terms contained in his Employment Agreement. The Company is required to cause such equity awards to be registered with the SEC as soon as practicable following the Company’s eligibility to do so. The options have a maximum term of ten years. The unrecognized compensation cost associated with Mr. O’Brien’s stock options was $354 at the time of grant. The cost is expected to be recognized over a weighted-average period of 1.05 years. Subsequent to March 31, 2020, a total of 93,029 nonvested restricted stock awards and 123,238 options to purchase shares of common stock have been forfeited due to the termination or resignation of employees and loan officers, whether in connection with the Internal Review or otherwise.

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2020
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the condensed 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 condensed 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. During 2020, economies throughout the world have been severely disrupted because of the outbreak of the novel coronavirus (“COVID-19”). The Company’s primary market areas of California, the greater Seattle market, and New York became part of several epicenters of the COVID-19 pandemic. Banking and financial services have been designated essential businesses and the Bank’s operations are continuing, subject to certain modifications to business practices imposed to safeguard the health and wellness of the Bank’s customers and employees, and to comply with applicable government directives. As of March 31, 2020, the impact of the outbreak of COVID-19 was continuing to unfold. As a result, many of management’s estimates and assumptions required increased judgement and carried a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, management’s estimates may change materially in future periods.
Concentration of Credit Risk	Concentration of Credit Risk The loan portfolio consists primarily of residential real estate loans which are collateralized by real estate. At March 31, 2020 and December 31, 2019, residential real estate loans accounted for 83% and 85%, 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 March 31, 2020 and December 31, 2019, approximately 88% and 89%, respectively, of the loan portfolio was originated in California. Starting December 9, 2019, the Bank suspended its Advantage Loan Program and announced that it permanently discontinued this program on March 6, 2020. This Program was a material component of the Bank’s total loan originations. Loans under the Advantage Loan Program totaled $1,791,863, or 76% of residential loan portfolio, as of March 31, 2020, and $1,942,657, or 78% of residential loan portfolio, as of December 31, 2019.

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2020

Investment Securities

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


	March 31, 2020
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury securities	$	95,949	$	917	$	—	$	96,866
Mortgage-backed securities		15,157		4		—		15,161
Collateralized mortgage obligations		41,458		226		(67)		41,617
Collateralized debt obligations		215		—		(26)		189
Total	$	152,779	$	1,147	$	(93)	$	153,833


	December 31, 2019
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury securities	$	122,634	$	170	$	(1)	$	122,803
Mortgage-backed securities		23,028		76		—		23,104
Collateralized mortgage obligations		1,138		45		—		1,183
Collateralized debt obligations		216		—		(17)		199
Total	$	147,016	$	291	$	(18)	$	147,289

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


	Amortized		Fair
	Cost		Value
U.S. Treasury securities
Due less than one year	$	76,095	$	76,654
Due after one year through five years		19,854		20,212
Mortgage-backed securities		15,157		15,161
Collateralized mortgage obligations		41,458		41,617
Collateralized debt obligations		215		189
Total	$	152,779	$	153,833

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


	March 31, 2020
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Collateralized mortgage obligations	$	1,016	$	(67)	$	—	$	—	$	1,016	$	(67)
Collateralized debt obligations		—		—		189		(26)		189		(26)
Total	$	1,016	$	(67)	$	189	$	(26)	$	1,205	$	(93)


	December 31, 2019
	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	$	5,011	$	(1)	$	—	$	—	$	5,011	$	(1)
Collateralized debt obligations		—		—		199		(17)		199		(17)
Total	$	5,011	$	(1)	$	199	$	(17)	$	5,210	$	(18)

Schedule of equity securities with readily determinable fair values


	Three Months Ended
	March 31,
	2020		2019
Net gains recorded during the period on equity securities	$	80	$	49
Less: net gains (losses) recorded during the period on equity securities sold during the period		—		—
Unrealized gains recorded during the period on equity securities held at the reporting date	$	80	$	49

Loans (Tables)

3 Months Ended

Mar. 31, 2020

Loans

Schedule of major categories of loans


	March 31,		December 31,
	2020		2019
Residential real estate	$	2,345,328	$	2,476,866
Commercial real estate		279,508		240,081
Construction		198,115		178,376
Commercial lines of credit		19,271		17,903
Other consumer		36		34
Total loans		2,842,258		2,913,260
Less: allowance for loan losses		(42,613)		(21,730)
Loans, net	$	2,799,645	$	2,891,530

Schedule 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 three months ended March 31, 2020 and 2019:


							Commercial
	Residential		Commercial				Lines of		Other
Three Months Ended March 31, 2020	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	12,336	$	5,243	$	3,822	$	328	$	1	$	—	$	21,730
Provision for loan losses		6,808		5,999		7,616		40		—		390		20,853
Charge offs		—		—		—		—		—		—		—
Recoveries		10		19		1		—		—		—		30
Total ending balance	$	19,154	$	11,261	$	11,439	$	368	$	1	$	390	$	42,613

							Commercial
	Residential		Commercial				Lines of		Other
Three Months Ended March 31, 2019	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	13,826	$	2,573	$	3,273	$	1,058	$	1	$	1,119	$	21,850
Provision (recovery) for loan losses		(343)		(253)		(558)		(58)		—		198		(1,014)
Charge offs		—		—		—		(176)		—		—		(176)
Recoveries		5		31		2		—		—		—		38
Total ending balance	$	13,488	$	2,351	$	2,717	$	824	$	1	$	1,317	$	20,698

The following tables present the balance in the allowance for loan losses and the recorded investment by portfolio segment and based on impairment method as of March 31, 2020 and December 31, 2019:


							Commercial
	Residential		Commercial				Lines of		Other
March 31, 2020	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	42	$	—	$	—	$	5	$	—	$	—	$	47
Collectively evaluated for impairment		19,112		11,261		11,439		363		1		390		42,566
Total ending allowance balance	$	19,154	$	11,261	$	11,439	$	368	$	1	$	390	$	42,613
Loans:
Loans individually evaluated for impairment	$	211	$	1,079	$	26,846	$	1,373	$	—	$	—	$	29,509
Loans collectively evaluated for impairment		2,345,117		278,429		171,269		17,898		36		—		2,812,749
Total ending loans balance	$	2,345,328	$	279,508	$	198,115	$	19,271	$	36	$	—	$	2,842,258


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2019	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	43	$	—	$	—	$	5	$	—	$	—	$	48
Collectively evaluated for impairment		12,293		5,243		3,822		323		1		—		21,682
Total ending allowance balance	$	12,336	$	5,243	$	3,822	$	328	$	1	$	—	$	21,730
Loans:
Loans individually evaluated for impairment	$	215	$	1,100	$	17,112	$	1,377	$	—	$	—	$	19,804
Loans collectively evaluated for impairment		2,476,651		238,981		161,264		16,526		34		—		2,893,456
Total ending loans balance	$	2,476,866	$	240,081	$	178,376	$	17,903	$	34	$	—	$	2,913,260

Schedule of information related to impaired loans by class of loans


	At March 31, 2020						At December 31, 2019
	Unpaid				Allowance		Unpaid				Allowance
	Principal		Recorded		for Loan		Principal		Recorded		for Loan
	Balance		Investment		Losses		Balance		Investment		Losses
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	121	$	95	$	—	$	125	$	98	$	—
Commercial real estate, retail		1,292		1,079		—		1,308		1,100		—
Construction		26,889		26,846		—		17,156		17,112		—
Commercial lines of credit, private banking		1,245		1,242		—		1,245		1,245		—
Subtotal		29,547		29,262		—		19,834		19,555		—
With an allowance for loan losses recorded:
Residential real estate, first mortgage		116		116		42		116		117		43
Commercial lines of credit, private banking		131		131		5		132		132		5
Subtotal		247		247		47		248		249		48
Total	$	29,794	$	29,509	$	47	$	20,082	$	19,804	$	48


	Three Months Ended March 31,
	2020						2019
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	96	$	—	$	—	$	107	$	—	$	—
Commercial real estate:
Retail		1,089		15		10		1,165		15		10
Multifamily		—		—		—		1,080		12		8
Offices		—		—		—		1,516		25		17
Construction		26,653		466		269		9,325		146		97
Commercial lines of credit:
Private banking		1,243		21		14		—		—		—
C&I lending		—		—		—		100		2		1
Subtotal		29,081		502		293		13,293		200		133
With an allowance for loan losses recorded:
Residential real estate, first mortgage		117		1		1		120		1		1
Commercial lines of credit, private banking		131		2		1		139		2		1
Subtotal		248		3		2		259		3		2
Total	$	29,329	$	505	$	295	$	13,552	$	203	$	135

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 table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2020 and December 31, 2019:


	March 31, 2020				December 31, 2019
			Loans Past				Loans Past
			Due Over				Due Over
			90 Days Still				90 Days Still
	Nonaccrual		Accruing		Nonaccrual		Accruing
Residential real estate:
Residential first mortgage	$	15,768	$	48	$	14,482	$	50
Residential second mortgage		505		—		210		—
Commercial real estate:
Retail		35		—		40		—
Total	$	16,308	$	48	$	14,732	$	50

The following tables present the aging of the recorded investment in past due loans as of March 31, 2020 and December 31, 2019 by class of loans:


					Greater
	30 - 59		60 - 89		than
	Days		Days		89 Days		Total		Loans Not
March 31, 2020	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	29,528	$	12,668	$	15,816	$	58,012	$	2,262,732	$	2,320,744
Residential second mortgage		477		127		505		1,109		23,475		24,584
Commercial real estate:
Retail		—		—		35		35		17,995		18,030
Multifamily		979		—		—		979		92,293		93,272
Offices		—		—		—		—		27,822		27,822
Hotels/Single room occupancy hotels		13,538		—		—		13,538		59,949		73,487
Industrial		—		—		—		—		14,089		14,089
Other		—		—		—		—		52,808		52,808
Construction		20,214		—		—		20,214		177,901		198,115
Commercial lines of credit:
Private banking		—		—		—		—		10,874		10,874
C&I lending		—		—		—		—		8,397		8,397
Other consumer		—		—		—		—		36		36
Total	$	64,736	$	12,795	$	16,356	$	93,887	$	2,748,371	$	2,842,258


					Greater
	30 - 59		60 - 89		than
	Days		Days		89 Days		Total		Loans Not
December 31, 2019	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	36,112	$	5,112	$	14,532	$	55,756	$	2,396,800	$	2,452,556
Residential second mortgage		97		295		210		602		23,708		24,310
Commercial real estate:
Retail		—		—		40		40		6,089		6,129
Multifamily		—		—		—		—		64,873		64,873
Offices		—		—		—		—		28,048		28,048
Hotel/Single room occupancy hotels		5,605		—		—		5,605		76,165		81,770
Industrial		—		—		—		—		14,150		14,150
Other		—		—		—		—		45,111		45,111
Construction		15,008		—		—		15,008		163,368		178,376
Commercial lines of credit:
Private banking		—		—		—		—		11,914		11,914
C&I lending		1,249		—		—		1,249		4,740		5,989
Other consumer		—		—		—		—		34		34
Total	$	58,071	$	5,407	$	14,782	$	78,260	$	2,835,000	$	2,913,260

Schedule of risk rating of loans by class of loans


			Special
March 31, 2020	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	2,304,928	$	—	$	15,459	$	357	$	2,320,744
Residential second mortgage		24,079		—		505		—		24,584
Commercial real estate:
Retail		16,118		833		1,079		—		18,030
Multifamily		84,601		7,118		1,553		—		93,272
Offices		24,343		—		3,479		—		27,822
Hotels/Single room occupancy hotels		28,205		15,355		29,927		—		73,487
Industrial		5,888		—		8,201		—		14,089
Other		45,468		916		6,424		—		52,808
Construction		163,679		14,539		19,897		—		198,115
Commercial lines of credit:
Private banking		9,632		1,242		—		—		10,874
C&I lending		7,015		1,382		—		—		8,397
Other consumer loans		36		—		—		—		36
Total	$	2,713,992	$	41,385	$	86,524	$	357	$	2,842,258


			Special
December 31, 2019	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	2,438,024	$	—	$	14,077	$	455	$	2,452,556
Residential second mortgage		24,100		—		210		—		24,310
Commercial real estate:
Retail		4,195		834		1,100		—		6,129
Multifamily		56,164		7,150		1,559		—		64,873
Offices		24,484		645		2,919		—		28,048
Hotels/Single room occupancy hotels		60,074		18,189		3,507		—		81,770
Industrial		5,894		8,256		—		—		14,150
Other		37,693		920		6,498		—		45,111
Construction		156,339		7,008		15,029		—		178,376
Commercial lines of credit:
Private banking		10,669		1,245		—		—		11,914
C&I lending		4,013		—		1,976		—		5,989
Other consumer		34		—		—		—		34
Total	$	2,821,683	$	44,247	$	46,875	$	455	$	2,913,260

Mortgage Servicing Rights, net (Tables)

3 Months Ended

Mar. 31, 2020

Mortgage Servicing Rights, net

Schedule of principal balance of mortgage loans serviced for others


	March 31,		December 31,
	2020		2019
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	136,184	$	130,425
FHLB		87,753		86,778
Private investors		610,094		656,035
Total	$	834,031	$	873,238

Schedule of activity for mortgage servicing rights and related valuation allowance


	Three Months Ended
	March 31,
	2020		2019
Mortgage servicing rights:
Beginning of period	$	10,845	$	10,733
Additions		107		843
Amortization		(650)		(684)
End of period		10,302		10,892

Valuation allowance at beginning of period		1,080		100
Additions (recoveries)		1,246		37
Valuation allowance at end of period		2,326		137

Mortgage servicing rights, net	$	7,976	$	10,755

FHLB Borrowings (Tables)

3 Months Ended

Mar. 31, 2020

FHLB Borrowings

Schedule of FHLB borrowings


	March 31,			December 31,
	2020		Interest Rates	2019		Interest Rates
Long-term fixed rate advances	$	329,000	0.43%-1.96%	$	229,000	1.07%-1.96%

Subordinated Notes, net (Tables)

3 Months Ended

Mar. 31, 2020

Subordinated Notes, net

Schedule of subordinated notes


	March 31,		December 31,
	2020		2019
7.0% fixed to floating rate subordinated notes	$	65,000	$	65,000
Unamortized note premium		458		474
Unamortized debt issuance costs		(240)		(295)
Total	$	65,218	$	65,179

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

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	$	7.10
Risk-free interest rate		0.94	%
Expected term (in years)		6.00
Expected stock price volatility		26.45	%
Dividend yield		.56	%

Summary of the Company's stock option activity


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term	Value
				(Years)
Outstanding at January 1, 2020	142,477	$	12.29	8.60	$	—
Granted	67,361		7.10
Exercised	—		—
Forfeited /expired	(8,673)		11.78
Outstanding at March 31, 2020	201,165	$	10.57	8.88	$	—

Summary of the Company's restricted stock awards activity


		Weighted Average
	Number	Grant Date Fair
	of Shares	Value

Nonvested at January 1, 2020	100,096	$	11.02
Granted	141,374		6.98
Vested	—		—
Forfeited	(7,197)		11.35
Nonvested at March 31, 2020	234,273	$	8.57

Income (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Income (Loss) Per Share

Schedule of computation of income (loss) per share, basic and diluted


	Three Months Ended
	March 31,
	2020		2019
Numerator:
Net income (loss)	$	(4,030)	$	15,683

Denominator:
Weighted average common shares outstanding, basic		49,837,662		52,554,446
Weighted average effect of potentially dilutive common shares:
Stock options		—		—
Restricted stock		—		8,374
Weighted average common shares outstanding, diluted		49,837,662		52,562,820

Income (loss) per share:
Basic	$	(0.08)	$	0.30
Diluted	$	(0.08)	$	0.30

Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Values of Financial Instruments

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


	Fair Value Measurements at
	March 31, 2020
			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	$	96,866	$	96,866	$	—	$	—
Mortgage-backed securities		15,161		—		15,161		—
Collateralized mortgage obligations		41,617		—		41,617		—
Collateralized debt obligations		189		—		—		189
Equity securities		5,089		5,089		—		—


	Fair Value Measurements at
	December 31, 2019
			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	$	122,803	$	122,803	$	—	$	—
Mortgage-backed securities		23,104		—		23,104		—
Collateralized mortgage obligations		1,183		—		1,183		—
Collateralized debt obligations		199		—		—		199
Equity securities		5,009		5,009		—		—

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)
	Collateralized Debt Obligations
	March 31, 2020		March 31, 2019
Balance of recurring Level 3 assets at beginning of period	$	199	$	297
Total gains or losses (realized/unrealized):
Included in income-realized		—		—
Included in other comprehensive income (loss)		(9)		(6)
Principal maturities/settlements		(1)		(1)
Sales		—		—
Transfers in and/or out of Level 3		—		—
Balance of recurring Level 3 assets at end of period	$	189	$	290

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

Fair Value Measurements at March 31, 2020

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

7,466

—

7,466

Fair Value Measurements at December 31, 2019

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

7,949

—

7,949

Schedule of quantitative information about nonrecurring Level 3 fair value measurements


	Quantitative Information about Level 3 Fair Value Measurements at March 31, 2020
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average) (1)
Mortgage servicing rights	$	7,466	Discounted cash flow	Discount rate	9.5% - 12.0% (11.7%)
				Prepayment speed	7.8% - 47.8% (22.5%)
				Default rate	0.1% - 0.3% (0.2%)

(1) The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average) (1)
Mortgage servicing rights	$	7,949	Discounted cash flow	Discount rate	9.5% - 12.0% (11.9%)
				Prepayment speed	7.2% - 47.1% (21.3%)
				Default rate	0.1% - 0.3% (0.2%)

(1) The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

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


	Fair Value Measurements at March 31, 2020
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	391,009	$	391,009	$	391,009	$	—	$	—
Interest-bearing time deposits with other banks		1,025		1,031		—		1,031		—
Mortgage loans held for sale		3,776		3,890		—		3,890		—
Loans, net		2,799,645		2,840,329		—		—		2,840,329

Financial Liabilities
Time deposits		1,377,610		1,383,282		—		1,383,282		—
Federal Home Loan Bank borrowings		329,000		344,961		—		344,961		—
Subordinated notes, net		65,218		59,150		—		59,150		—


	Fair Value Measurements at December 31, 2019
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	77,819	$	77,819	$	77,819	$	—	$	—
Interest-bearing time deposits with other banks		1,025		1,025		1,025		—		—
Mortgage loans held for sale		1,337		1,368		—		1,368		—
Loans, net		2,891,530		2,978,846		—		—		2,978,846

Financial Liabilities
Time deposits		1,154,076		1,161,490		—		1,161,490		—
Federal Home Loan Bank borrowings		229,000		227,333		—		227,333		—
Subordinated notes, net		65,179		65,650		—		65,650		—

Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2020

Regulatory Capital Requirements

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
March 31, 2020
Total adjusted capital to risk-weighted assets
Consolidated	$	413,905	21.15	%	$	156,553	8.00	%		N/A	N/A
Bank		396,945	20.37			155,911	8.00		$	194,889	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		327,917	16.76			117,415	6.00			N/A	N/A
Bank		372,307	19.10			116,933	6.00			155,809	8.00
Common Equity Tier 1 (CET1)
Consolidated		327,917	16.76			88,061	4.50			N/A	N/A
Bank		372,307	19.10			87,700	4.50			126,595	6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated		327,917	9.95			131,795	4.00			N/A	N/A
Bank		372,307	11.31			131,681	4.00			164,337	5.00


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2019
Total adjusted capital to risk-weighted assets
Consolidated	$	419,327	21.49	%	$	156,081	8.00	%		N/A	N/A
Bank		346,985	17.82			155,809	8.00		$	194,761	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		332,418	17.04			117,061	6.00			N/A	N/A
Bank		325,255	16.70			116,857	6.00			155,809	8.00
Common Equity Tier 1 (CET1)
Consolidated		332,418	17.04			87,796	4.50			N/A	N/A
Bank		325,255	16.70			87,643	4.50			126,595	6.50
Tier 1 (core) capital to adjusted tangible assets
Consolidated		332,418	10.11			131,471	4.00			N/A	N/A
Bank		325,255	9.90			131,469	4.00			164,337	5.00

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies

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


	March 31,		December 31,
	2020		2019
Commitments to make loans	$	87,762	$	76,927
Unused lines of credit		244,848		220,553
Standby letters of credit		24		24

Nature of Operations and Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2020 segment item
Nature of Operations and Basis of Presentation
Number of branches	30
Number of reportable segments \| segment	1
San Francisco and Los Angeles, California
Nature of Operations and Basis of Presentation
Number of branches	26

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Concentration of Credit Risk
Loans Receivable	$ 2,842,258	$ 2,842,258	$ 2,913,260
Residential real estate
Concentration of Credit Risk
Loans Receivable	$ 2,345,328	$ 2,345,328	$ 2,476,866
Residential real estate loans \| Loans receivables
Concentration of Credit Risk
Concentration of credit risk		83.00%	85.00%
California \| Loans receivables
Concentration of Credit Risk
Concentration of credit risk		88.00%	89.00%
Advantage loan program \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk	76.00%		78.00%
Loans Receivable	$ 1,791,863	$ 1,791,863	$ 1,942,657

Investment Securities - Amortized Cost and Fair Value Corresponding Gross Unrealized Gains and Losses (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Available for sale:
Available for sale, Amortized Cost	$ 152,779,000	$ 147,016,000
Available for sale, Gross Unrealized Gain	1,147,000	291,000
Available for sale, Gross Unrealized Loss	(93,000)	(18,000)
Investment securities available for sale, at fair value	153,833,000	147,289,000
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%
Sales of investment securities	$ 23,044,000
Gross realized gains	235,000
Gross realized losses	(2,000)
U.S. Treasury securities
Available for sale:
Available for sale, Amortized Cost	95,949,000	$ 122,634,000
Available for sale, Gross Unrealized Gain	917,000	170,000
Available for sale, Gross Unrealized Loss		(1,000)
Investment securities available for sale, at fair value	96,866,000	122,803,000
Mortgage-backed securities
Available for sale:
Available for sale, Amortized Cost	15,157,000	23,028,000
Available for sale, Gross Unrealized Gain	4,000	76,000
Investment securities available for sale, at fair value	15,161,000	23,104,000
Collateralized mortgage obligations
Available for sale:
Available for sale, Amortized Cost	41,458,000	1,138,000
Available for sale, Gross Unrealized Gain	226,000	45,000
Available for sale, Gross Unrealized Loss	(67,000)
Investment securities available for sale, at fair value	41,617,000	1,183,000
Collateralized debt obligations
Available for sale:
Available for sale, Amortized Cost	215,000	216,000
Available for sale, Gross Unrealized Loss	(26,000)	(17,000)
Investment securities available for sale, at fair value	$ 189,000	$ 199,000

Investment Securities - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available for sale, Amortized Cost
Available for sale, Amortized Cost	$ 152,779	$ 147,016
Available for sale, Fair Value
Available for sale, Fair Value	153,833	147,289
U.S. Treasury securities
Available for sale, Amortized Cost
Due less than one year	76,095
Due after one year through five years	19,854
Available for sale, Amortized Cost	95,949	122,634
Available for sale, Fair Value
Due less than one year	76,654
Due after one year through five years	20,212
Available for sale, Fair Value	96,866	122,803
Mortgage-backed securities
Available for sale, Amortized Cost
Available for sale, Amortized Cost	15,157	23,028
Available for sale, Fair Value
Available for sale, Fair Value	15,161	23,104
Collateralized mortgage obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	41,458	1,138
Available for sale, Fair Value
Available for sale, Fair Value	41,617	1,183
Collateralized debt obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	215	216
Available for sale, Fair Value
Available for sale, Fair Value	$ 189	$ 199

Investment Securities - Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) security	Dec. 31, 2019 USD ($)
Fair Value
Less than 12 Months, Fair value	$ 1,016	$ 5,011
12 Months or More, Fair Value	189	199
Available for sale, Continuous unrealized loss position, Fair Value	1,205	5,210
Unrealized Losses
Less than 12 Months, Unrealized Losses	(67)	(1)
12 Months or More, Unrealized Losses	(26)	(17)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (93)	(18)
Number of debt securities in portfolio \| security	14
Number of debt securities in an unrealized loss position \| security	3
U.S. Treasury securities
Fair Value
Less than 12 Months, Fair value		5,011
Available for sale, Continuous unrealized loss position, Fair Value		5,011
Unrealized Losses
Less than 12 Months, Unrealized Losses		(1)
Available for sale, Continuous unrealized loss position, Unrealized Losses		(1)
Collateralized mortgage obligations
Fair Value
Less than 12 Months, Fair value	$ 1,016
Available for sale, Continuous unrealized loss position, Fair Value	1,016
Unrealized Losses
Less than 12 Months, Unrealized Losses	(67)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(67)
Collateralized debt obligations
Fair Value
12 Months or More, Fair Value	189	199
Available for sale, Continuous unrealized loss position, Fair Value	189	199
Unrealized Losses
12 Months or More, Unrealized Losses	(26)	(17)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (26)	$ (17)

Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Equity Securities
Fair value of equity securities	$ 5,335		$ 5,255
Equity securities with readily determinable fair values	5,089		5,009
Equity securities with readily determinable fair values
Net gains recorded during the period on equity securities	80	$ 49
Unrealized gains recorded during the period on equity securities held at the reporting date	80	$ 49
Level 3
Equity Securities
Investment in equity securities without readily determinable fair value	$ 246		$ 246

Loans - Major Categories of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Major categories of loans
Total Loans	$ 2,842,258	$ 2,913,260
Less: allowance for loan losses	(42,613)	(21,730)	$ (20,698)	$ (21,850)
Loans, net	2,799,645	2,891,530
Carrying value of loans pledged as collateral on FHLB borrowings	1,157,536	933,747
Residential real estate
Major categories of loans
Total Loans	2,345,328	2,476,866
Less: allowance for loan losses	(19,154)	(12,336)	(13,488)	(13,826)
Loans, net	713,427	759,568
Commercial real estate
Major categories of loans
Total Loans	279,508	240,081
Less: allowance for loan losses	(11,261)	(5,243)	(2,351)	(2,573)
Construction
Major categories of loans
Total Loans	198,115	178,376
Less: allowance for loan losses	(11,439)	(3,822)	(2,717)	(3,273)
Commercial lines of credit
Major categories of loans
Total Loans	19,271	17,903
Less: allowance for loan losses	(368)	(328)	(824)	(1,058)
Other consumer
Major categories of loans
Total Loans	36	34
Less: allowance for loan losses	$ (1)	$ (1)	$ (1)	$ (1)

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Allowance for loan losses
Beginning balance	$ 21,730	$ 21,850
Provision (recovery) for loan losses	20,853	(1,014)
Charge offs		(176)
Recoveries	30	38
Total ending balance	42,613	20,698
Residential real estate
Allowance for loan losses
Beginning balance	12,336	13,826
Provision (recovery) for loan losses	6,808	(343)
Recoveries	10	5
Total ending balance	19,154	13,488
Commercial real estate
Allowance for loan losses
Beginning balance	5,243	2,573
Provision (recovery) for loan losses	5,999	(253)
Recoveries	19	31
Total ending balance	11,261	2,351
Construction
Allowance for loan losses
Beginning balance	3,822	3,273
Provision (recovery) for loan losses	7,616	(558)
Recoveries	1	2
Total ending balance	11,439	2,717
Commercial lines of credit
Allowance for loan losses
Beginning balance	328	1,058
Provision (recovery) for loan losses	40	(58)
Charge offs		(176)
Total ending balance	368	824
Other consumer
Allowance for loan losses
Beginning balance	1	1
Total ending balance	1	1
Unallocated
Allowance for loan losses
Beginning balance		1,119
Provision (recovery) for loan losses	390	198
Total ending balance	$ 390	$ 1,317

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment And Based On Impairment Method (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 47	$ 48
Collectively evaluated for impairment	42,566	21,682
Total ending allowance balance	42,613	21,730	$ 20,698	$ 21,850
Loans:
Loans individually evaluated for impairment	29,509	19,804
Loans collectively evaluated for impairment	2,812,749	2,893,456
Total Loans	2,842,258	2,913,260
Residential real estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment	42	43
Collectively evaluated for impairment	19,112	12,293
Total ending allowance balance	19,154	12,336	13,488	13,826
Loans:
Loans individually evaluated for impairment	211	215
Loans collectively evaluated for impairment	2,345,117	2,476,651
Total Loans	2,345,328	2,476,866
Commercial real estate
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	11,261	5,243
Total ending allowance balance	11,261	5,243	2,351	2,573
Loans:
Loans individually evaluated for impairment	1,079	1,100
Loans collectively evaluated for impairment	278,429	238,981
Total Loans	279,508	240,081
Construction
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	11,439	3,822
Total ending allowance balance	11,439	3,822	2,717	3,273
Loans:
Loans individually evaluated for impairment	26,846	17,112
Loans collectively evaluated for impairment	171,269	161,264
Total Loans	198,115	178,376
Commercial lines of credit
Ending allowance balance attributable to loans:
Individually evaluated for impairment	5	5
Collectively evaluated for impairment	363	323
Total ending allowance balance	368	328	824	1,058
Loans:
Loans individually evaluated for impairment	1,373	1,377
Loans collectively evaluated for impairment	17,898	16,526
Total Loans	19,271	17,903
Other consumer
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	1	1
Total ending allowance balance	1	1	1	1
Loans:
Loans collectively evaluated for impairment	36	34
Total Loans	36	$ 34
Unallocated
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	390
Total ending allowance balance	$ 390		$ 1,317	$ 1,119

Loans - Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	$ 29,547		$ 19,834
Unpaid principal balance, with an allowance for loan losses recorded	247		248
Total Unpaid Principal Balance	29,794		20,082
Recorded investment, with no related allowance for loan losses recorded	29,262		19,555
Recorded investment, with an allowance for loan losses recorded	247		249
Total Recorded Investment	29,509		19,804
Allowance for Loan Losses	47		48
Average recorded investment, with no related allowance for loan losses recorded	29,081	$ 13,293
Average recorded investment, with an allowance for loan losses recorded	248	259
Total Average Recorded Investment	29,329	13,552
Interest Income Recognized, with no related allowance for loan losses recorded	502	200
Interest Income Recognized, with an allowance for loan losses recorded	3	3
Total Interest Income Recognized	505	203
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	293	133
Cash Basis Interest Recognized, with an allowance for loan losses recorded	2	2
Total Cash Basis Interest Recognized	295	135
Residential real estate \| Real estate loan, first mortgage
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	121		125
Unpaid principal balance, with an allowance for loan losses recorded	116		116
Recorded investment, with no related allowance for loan losses recorded	95		98
Recorded investment, with an allowance for loan losses recorded	116		117
Allowance for Loan Losses	42		43
Average recorded investment, with no related allowance for loan losses recorded	96	107
Average recorded investment, with an allowance for loan losses recorded	117	120
Interest Income Recognized, with an allowance for loan losses recorded	1	1
Cash Basis Interest Recognized, with an allowance for loan losses recorded	1	1
Commercial real estate \| Real estate loan, Retail
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	1,292		1,308
Recorded investment, with no related allowance for loan losses recorded	1,079		1,100
Average recorded investment, with no related allowance for loan losses recorded	1,089	1,165
Interest Income Recognized, with no related allowance for loan losses recorded	15	15
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	10	10
Commercial real estate \| Real estate loan, Multifamily
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded		1,080
Interest Income Recognized, with no related allowance for loan losses recorded		12
Cash Basis Interest Recognized, with no related allowance for loan losses recorded		8
Commercial real estate \| Real estate loan, Offices
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded		1,516
Interest Income Recognized, with no related allowance for loan losses recorded		25
Cash Basis Interest Recognized, with no related allowance for loan losses recorded		17
Construction
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	26,889		17,156
Recorded investment, with no related allowance for loan losses recorded	26,846		17,112
Average recorded investment, with no related allowance for loan losses recorded	26,653	9,325
Interest Income Recognized, with no related allowance for loan losses recorded	466	146
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	269	97
Commercial lines of credit \| Private banking
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	1,245		1,245
Unpaid principal balance, with an allowance for loan losses recorded	131		132
Recorded investment, with no related allowance for loan losses recorded	1,242		1,245
Recorded investment, with an allowance for loan losses recorded	131		132
Allowance for Loan Losses	5		$ 5
Average recorded investment, with no related allowance for loan losses recorded	1,243
Average recorded investment, with an allowance for loan losses recorded	131	139
Interest Income Recognized, with no related allowance for loan losses recorded	21
Interest Income Recognized, with an allowance for loan losses recorded	2	2
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	14
Cash Basis Interest Recognized, with an allowance for loan losses recorded	$ 1	1
Commercial lines of credit \| C&I lending
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded		100
Interest Income Recognized, with no related allowance for loan losses recorded		2
Cash Basis Interest Recognized, with no related allowance for loan losses recorded		$ 1

Loans - Investment in Nonaccrual and Loans Past Due Still Accruing by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	$ 16,308	$ 14,732
Loans Past Due Over 90 Days Still Accruing	48	50
Total Past Due	93,887	78,260
Loans Not Past Due	2,748,371	2,835,000
Total Loans	2,842,258	2,913,260
30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	64,736	58,071
60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	12,795	5,407
Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	16,356	14,782
Residential real estate
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	2,345,328	2,476,866
Residential real estate \| Real estate loan, first mortgage
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	15,768	14,482
Loans Past Due Over 90 Days Still Accruing	48	50
Total Past Due	58,012	55,756
Loans Not Past Due	2,262,732	2,396,800
Total Loans	2,320,744	2,452,556
Residential real estate \| Real estate loan, first mortgage \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	29,528	36,112
Residential real estate \| Real estate loan, first mortgage \| 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	12,668	5,112
Residential real estate \| Real estate loan, first mortgage \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	15,816	14,532
Residential real estate \| Real estate loan, second mortgage
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	505	210
Total Past Due	1,109	602
Loans Not Past Due	23,475	23,708
Total Loans	24,584	24,310
Residential real estate \| Real estate loan, second mortgage \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	477	97
Residential real estate \| Real estate loan, second mortgage \| 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	127	295
Residential real estate \| Real estate loan, second mortgage \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	505	210
Commercial real estate
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	279,508	240,081
Commercial real estate \| Real estate loan, Retail
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	35	40
Total Past Due	35	40
Loans Not Past Due	17,995	6,089
Total Loans	18,030	6,129
Commercial real estate \| Real estate loan, Retail \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	35	40
Commercial real estate \| Real estate loan, Multifamily
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	979
Loans Not Past Due	92,293	64,873
Total Loans	93,272	64,873
Commercial real estate \| Real estate loan, Multifamily \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	979
Commercial real estate \| Real estate loan, Offices
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	27,822	28,048
Total Loans	27,822	28,048
Commercial real estate \| Real estate loan, Hotels/Single room occupancy hotels
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	13,538	5,605
Loans Not Past Due	59,949	76,165
Total Loans	73,487	81,770
Commercial real estate \| Real estate loan, Hotels/Single room occupancy hotels \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	13,538	5,605
Commercial real estate \| Real estate loan, Industrial
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	14,089	14,150
Total Loans	14,089	14,150
Commercial real estate \| Real estate loan, Other
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	52,808	45,111
Total Loans	52,808	45,111
Construction
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	20,214	15,008
Loans Not Past Due	177,901	163,368
Total Loans	198,115	178,376
Construction \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due	20,214	15,008
Commercial lines of credit
Investment in nonaccrual and loans past due still accruing by class of loans
Total Loans	19,271	17,903
Commercial lines of credit \| Private banking
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	10,874	11,914
Total Loans	10,874	11,914
Commercial lines of credit \| C&I lending
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due		1,249
Loans Not Past Due	8,397	4,740
Total Loans	8,397	5,989
Commercial lines of credit \| C&I lending \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total Past Due		1,249
Other consumer
Investment in nonaccrual and loans past due still accruing by class of loans
Loans Not Past Due	36	34
Total Loans	$ 36	$ 34

Loans - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) loan item	Sep. 30, 2020 USD ($) item	Dec. 31, 2019 USD ($)
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	$ 24,563		$ 13,708
Allowance for outstanding loan losses classified as troubled debt restructurings	$ 47		48
Number of TDRs subsequently defaulted \| loan	0
Total outstanding recorded investment	$ 1,046
Number of forbearance requests received under the CARES Act COVID-19 forbearance program \| item	150	245
Aggregate loan balance of forbearance requests received under the CARES Act COVID-19 forbearance program	$ 70,288	$ 114,989
Loans that have completed deferment period under the CARES Act COVID-19 forbearance program and returned to normal debt service \| item		116
Aggregate loan balance of loans that have completed deferment period under the CARES Act COVID-19 forbearance program and returned to normal debt service		$ 69,828
Loans that remain in payment deferral under the CARES Act COVID-19 forbearance program \| item		62
Aggregate loan balance of loans that remain in payment deferral under the CARES Act COVID-19 forbearance program		$ 75,161
Residential real estate
Troubled Debt Restructurings
Mortgage Loans in Process of Foreclosure, Amount	8,132		$ 1,643
Construction \| Pre and Post Modification
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	$ 10,863

Loans - Risk Rating of Loans by Class of Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019
Recorded investment in loans
Total		$ 2,842,258	$ 2,913,260
Portfolio loans sold during the period	$ 49,891
Gain on sale of portfolio loans	$ 2,442
Pass
Recorded investment in loans
Total		2,713,992	2,821,683
Special Mention
Recorded investment in loans
Total		41,385	44,247
Substandard
Recorded investment in loans
Total		86,524	46,875
Doubtful
Recorded investment in loans
Total		357	455
Residential real estate
Recorded investment in loans
Total		2,345,328	2,476,866
Residential real estate \| Real estate loan, first mortgage
Recorded investment in loans
Total		2,320,744	2,452,556
Residential real estate \| Real estate loan, second mortgage
Recorded investment in loans
Total		24,584	24,310
Residential real estate \| Pass \| Real estate loan, first mortgage
Recorded investment in loans
Total		2,304,928	2,438,024
Residential real estate \| Pass \| Real estate loan, second mortgage
Recorded investment in loans
Total		24,079	24,100
Residential real estate \| Substandard \| Real estate loan, first mortgage
Recorded investment in loans
Total		15,459	14,077
Residential real estate \| Substandard \| Real estate loan, second mortgage
Recorded investment in loans
Total		505	210
Residential real estate \| Doubtful \| Real estate loan, first mortgage
Recorded investment in loans
Total		357	455
Commercial real estate
Recorded investment in loans
Total		279,508	240,081
Commercial real estate \| Real estate loan, Retail
Recorded investment in loans
Total		18,030	6,129
Commercial real estate \| Real estate loan, Multifamily
Recorded investment in loans
Total		93,272	64,873
Commercial real estate \| Real estate loan, Offices
Recorded investment in loans
Total		27,822	28,048
Commercial real estate \| Real estate loan, Hotels/Single room occupancy hotels
Recorded investment in loans
Total		73,487	81,770
Commercial real estate \| Real estate loan, Industrial
Recorded investment in loans
Total		14,089	14,150
Commercial real estate \| Real estate loan, Other
Recorded investment in loans
Total		52,808	45,111
Commercial real estate \| Pass \| Real estate loan, Retail
Recorded investment in loans
Total		16,118	4,195
Commercial real estate \| Pass \| Real estate loan, Multifamily
Recorded investment in loans
Total		84,601	56,164
Commercial real estate \| Pass \| Real estate loan, Offices
Recorded investment in loans
Total		24,343	24,484
Commercial real estate \| Pass \| Real estate loan, Hotels/Single room occupancy hotels
Recorded investment in loans
Total		28,205	60,074
Commercial real estate \| Pass \| Real estate loan, Industrial
Recorded investment in loans
Total		5,888	5,894
Commercial real estate \| Pass \| Real estate loan, Other
Recorded investment in loans
Total		45,468	37,693
Commercial real estate \| Special Mention \| Real estate loan, Retail
Recorded investment in loans
Total		833	834
Commercial real estate \| Special Mention \| Real estate loan, Multifamily
Recorded investment in loans
Total		7,118	7,150
Commercial real estate \| Special Mention \| Real estate loan, Offices
Recorded investment in loans
Total			645
Commercial real estate \| Special Mention \| Real estate loan, Hotels/Single room occupancy hotels
Recorded investment in loans
Total		15,355	18,189
Commercial real estate \| Special Mention \| Real estate loan, Industrial
Recorded investment in loans
Total			8,256
Commercial real estate \| Special Mention \| Real estate loan, Other
Recorded investment in loans
Total		916	920
Commercial real estate \| Substandard \| Real estate loan, Retail
Recorded investment in loans
Total		1,079	1,100
Commercial real estate \| Substandard \| Real estate loan, Multifamily
Recorded investment in loans
Total		1,553	1,559
Commercial real estate \| Substandard \| Real estate loan, Offices
Recorded investment in loans
Total		3,479	2,919
Commercial real estate \| Substandard \| Real estate loan, Hotels/Single room occupancy hotels
Recorded investment in loans
Total		29,927	3,507
Commercial real estate \| Substandard \| Real estate loan, Industrial
Recorded investment in loans
Total		8,201
Commercial real estate \| Substandard \| Real estate loan, Other
Recorded investment in loans
Total		6,424	6,498
Construction
Recorded investment in loans
Total		198,115	178,376
Construction \| Pass
Recorded investment in loans
Total		163,679	156,339
Construction \| Special Mention
Recorded investment in loans
Total		14,539	7,008
Construction \| Substandard
Recorded investment in loans
Total		19,897	15,029
Commercial lines of credit
Recorded investment in loans
Total		19,271	17,903
Commercial lines of credit \| Private banking
Recorded investment in loans
Total		10,874	11,914
Commercial lines of credit \| C&I lending
Recorded investment in loans
Total		8,397	5,989
Commercial lines of credit \| Pass \| Private banking
Recorded investment in loans
Total		9,632	10,669
Commercial lines of credit \| Pass \| C&I lending
Recorded investment in loans
Total		7,015	4,013
Commercial lines of credit \| Special Mention \| Private banking
Recorded investment in loans
Total		1,242	1,245
Commercial lines of credit \| Special Mention \| C&I lending
Recorded investment in loans
Total		1,382
Commercial lines of credit \| Substandard \| C&I lending
Recorded investment in loans
Total			1,976
Other consumer
Recorded investment in loans
Total		36	34
Other consumer \| Pass
Recorded investment in loans
Total		$ 36	$ 34

Mortgage Servicing Rights, net - Principle Balance by Category (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Mortgage Servicing Rights
Total	$ 834,031	$ 873,238
Custodial escrow balances maintained on serviced loans	7,122	7,688
FNMA
Mortgage Servicing Rights
Total	136,184	130,425
FHLB
Mortgage Servicing Rights
Total	87,753	86,778
Private investors
Mortgage Servicing Rights
Total	$ 610,094	$ 656,035

Mortgage Servicing Rights, net - Activity and Related Valuation Allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Mortgage servicing rights activity
Mortgage servicing rights Beginning of period	$ 10,845	$ 10,733
Additions	107	843
Amortization	(650)	(684)
Mortgage servicing rights End of period	10,302	10,892
Valuation allowance at beginning of period	1,080	100
Additions (recoveries)	1,246	37
Valuation allowance at end of period	2,326	137
Mortgage servicing rights, net	7,976	10,755	$ 9,765
Servicing fee income, net of amortization of servicing rights and changes in the valuation allowance	$ (911)	$ 325

Mortgage Servicing Rights, net - Valuation techniques (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Mortgage Servicing Rights
Fair value of mortgage servicing rights	$ 8,119	$ 10,271
Weighted average default rate	0.20%	0.20%
Minimum
Mortgage Servicing Rights
Discount rate range	9.50%	9.50%
Prepayment speed range	7.30%	6.80%
Maximum
Mortgage Servicing Rights
Discount rate range	12.00%	12.00%
Prepayment speed range	47.80%	47.10%

Deposits - Time deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Deposits
Interest-bearing time deposits	$ 1,377,610	$ 1,154,076
Brokered time deposits	167,751	25,000
Time deposits that meet or exceed the FDIC insurance limit of $250	$ 335,218	$ 283,457

FHLB Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
FHLB Borrowings
Long-term fixed rate advances	$ 329,000	$ 229,000
Minimum \| Long term
FHLB Borrowings
FHLB interest rates (as a percent)	0.43%	1.07%
Maximum \| Long term
FHLB Borrowings
FHLB interest rates (as a percent)	1.96%	1.96%

FHLB Borrowings - FHLB Advances (Details) $ in Thousands	Mar. 31, 2020 USD ($)
FHLB Borrowings
Additional borrowing capacity	$ 430,153
Callable Option
FHLB Borrowings
Total FHLB advances	307,000
Callable Option August, 2020
FHLB Borrowings
Total FHLB advances	100,000
Callable Option September, 2021
FHLB Borrowings
Total FHLB advances	67,000
Callable Option October, 2021
FHLB Borrowings
Total FHLB advances	90,000
Callable Option May, 2024
FHLB Borrowings
Total FHLB advances	$ 50,000

FHLB Borrowings - FHLB Overdraft Line of Credit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
FHLB Borrowings
FHLB line of credit agreement maximum borrowing limit	$ 50,000
FHLB overdraft line of credit average borrowings outstanding	$ 5	$ 4,133
FHLB overdraft line of credit (as percent)	0.53%		1.99%
FHLB, agreement term	1 year
Carrying value of loans pledged as collateral on FHLB borrowings	$ 1,157,536		$ 933,747

FHLB Borrowings - Other Borrowings (Details) - Other Banks - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Other Borrowings
Maximum borrowing capacity	$ 70,000		$ 70,000
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	3 Months Ended		12 Months Ended
Subordinated Notes, net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Subordinated Notes
Total	$ 65,218		$ 65,179
Cash proceeds from capital contribution	50,000
Interest expense	1,177	$ 1,174
Subordinated notes
Subordinated Notes
7.0% fixed to floating rate subordinated notes	65,000		65,000
Unamortized note premium	458		474
Unamortized debt issuance costs	(240)		(295)
Total	$ 65,218		$ 65,179
Interest rate (as a percent)	7.00%		7.00%
Interest expense	$ 1,177		$ 1,174
Redemption price percentage of outstanding principal amount	100.00%
LIBOR \| Subordinated notes
Subordinated Notes
Variable interest rate on subordinate notes (in percent)	5.82%

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018
Stock Repurchase Program
Shares repurchased and cancelled, value	$ 82	$ 11,544
Common stock
Stock Repurchase Program
Shares repurchased and canceled	10,912	1,212,574
Shares repurchased and cancelled, value	$ 82	$ 11,544
Average repurchase price (in dollars per share)	$ 7.57
Common stock repurchases remaining value	$ 19,568
Maximum \| Common stock
Stock Repurchase Program
Stock repurchase program authorized amount			$ 50,000

Stock-based Compensation (Details) - 2017 Omnibus Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		12 Months Ended
	Mar. 02, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Stock-based Compensation
Number of shares authorized		4,237,100
Stock Options
Stock-based Compensation
Maximum term of stock awards granted		10 years
Number of share instruments issued	67,361
Weighted average grant-date fair value	$ 1.78
Fair value assumptions used in Black-Scholes option pricing model
Exercise price of options	$ 7.10	$ 7.10
Risk-free interest rate		0.94%
Expected term (in years)		6 years
Expected stock price volatility		26.45%
Dividend yield		0.56%
Number of Shares
Outstanding at January 1, 2020		142,477
Granted		67,361
Forfeited/expired		(8,673)
Outstanding at March 31, 2020		201,165		142,477
Weighted Average Exercise Price
Outstanding at January 1, 2020		$ 12.29
Granted		7.10
Forfeited		11.78
Outstanding at March 31, 2020		$ 10.57		$ 12.29
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (Years)		8 years 10 months 17 days		8 years 7 months 6 days
Stock-based compensation costs recognized		$ 26	$ 32
Total unrecognized compensation cost - stock options		$ 422
Unrecognized compensation cost related to nonvested awards, expected weighted-average recognition period		2 years 6 months 4 days
Number of options exercisable		0
Stock Options \| Awards vesting at the end of the fourth year
Stock-based Compensation
Percentage of awards vesting		50.00%
Stock Options granted prior to 2020 \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting		50.00%
Stock Options granted starting in 2020
Stock-based Compensation
Vesting period		3 years
Stock Options granted starting in 2020 \| Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting		33.00%
Stock Options granted starting in 2020 \| Awards vesting at the end of the second year
Stock-based Compensation
Percentage of awards vesting		33.00%
Stock Options granted starting in 2020 \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting		33.00%
Restricted Stock
Weighted Average Remaining Contractual Term
Stock-based compensation costs recognized		$ 83	$ 94
Total unrecognized compensation cost - restricted stock awards		$ 1,557
Unrecognized compensation cost related to nonvested awards, expected weighted-average recognition period		2 years 9 months 11 days
Number of Shares
Nonvested at January 1, 2020		100,096
Granted		141,374
Forfeited		(7,197)
Nonvested at March 31, 2020		234,273		100,096
Weighted Average Grant Date Fair Value
Nonvested at January 1, 2020		$ 11.02
Granted		6.98
Forfeited		11.35
Nonvested at March 31, 2020		$ 8.57		$ 11.02
Restricted Stock \| Key employees Restricted Stock Awards
Stock-based Compensation
Vesting period	3 years
Number of share instruments issued	141,374
Restricted Stock \| Key employees Restricted Stock Awards \| Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting	33.00%
Restricted Stock \| Key employees Restricted Stock Awards \| Awards vesting at the end of the second year
Stock-based Compensation
Percentage of awards vesting	33.00%
Restricted Stock \| Key employees Restricted Stock Awards \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting	33.00%

Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net income (loss)	$ (4,030)	$ 15,683
Denominator:
Weighted average common shares outstanding, basic	49,837,662	52,554,446
Weighted average effect of potentially dilutive common shares:
Weighted average common shares outstanding, diluted	49,837,662	52,562,820
Income (loss) per share:
Basic (in dollars per share)	$ (0.08)	$ 0.30
Diluted (in dollars per share)	$ (0.08)	$ 0.30
Common stock \| Restricted Stock
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation		8,374
Income (loss) per share:
Potentially dilutive securities excluded from diluted per share calculation	234,273	104,244
Common stock \| Stock Options
Income (loss) per share:
Potentially dilutive securities excluded from diluted per share calculation	201,165	177,514

Fair Values of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available for sale debt securities:
Available for sale debt securities, at fair value	$ 153,833	$ 147,289
Equity securities
Equity securities	5,089	5,009
U.S. Treasury securities
Available for sale debt securities:
Available for sale debt securities, at fair value	96,866	122,803
U.S. Treasury securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	96,866	122,803
U.S. Treasury securities \| Level 1 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	96,866	122,803
Mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities, at fair value	15,161	23,104
Mortgage-backed securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	15,161	23,104
Mortgage-backed securities \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	15,161	23,104
Collateralized mortgage obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	41,617	1,183
Collateralized mortgage obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	41,617	1,183
Collateralized mortgage obligations \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	41,617	1,183
Collateralized debt obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	189	199
Collateralized debt obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	189	199
Collateralized debt obligations \| Level 3 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	189	199
Equity securities \| Recurring
Equity securities
Equity securities	5,089	5,009
Equity securities \| Level 1 \| Recurring
Equity securities
Equity securities	$ 5,089	$ 5,009

Fair Values of Financial Instruments - Reconciliation and income statement classification using Level 3 inputs (Details) - Collateralized debt obligations - Recurring - Level 3 - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
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	$ 199	$ 297	$ 297
Included in other comprehensive income (loss)	(9)	(6)
Principal maturities/settlements	(1)	(1)
Balance of recurring Level 3 assets at end of period	189	290	199
Investment income
Unrealized losses on investments	26		$ 17
Interest income	$ 2	$ 4

Fair Values of Financial Instruments - Assets Measured at Fair Value on a Non Recurring Basis and Fair Value of Financial Instruments (Details) $ in Thousands	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Financial Assets
Interest-bearing time deposits with other banks	$ 1,025	$ 1,025
Nonrecurring \| Mortgage servicing rights
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	7,466	7,949
Nonrecurring \| Mortgage servicing rights \| Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	7,466	7,949
Nonrecurring \| Mortgage servicing rights \| Level 3 \| Discounted cash flow
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 7,466	$ 7,949
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.120	0.120
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.478	0.471
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.003	0.003
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.095	0.095
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.078	0.072
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.001	0.001
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.117	0.119
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.225	0.213
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.002	0.002
Carrying value per balance sheet
Financial Assets
Cash and due from banks	$ 391,009	$ 77,819
Interest-bearing time deposits with other banks	1,025	1,025
Mortgage loans held for sale	3,776	1,337
Loans, net	2,799,645	2,891,530
Financial Liabilities
Time deposits	1,377,610	1,154,076
Federal Home Loan Bank borrowings	329,000	229,000
Subordinated notes, net	65,218	65,179
Estimated fair value
Financial Assets
Cash and due from banks	391,009	77,819
Interest-bearing time deposits with other banks	1,031	1,025
Mortgage loans held for sale	3,890	1,368
Loans, net	2,840,329	2,978,846
Financial Liabilities
Time deposits	1,383,282	1,161,490
Federal Home Loan Bank borrowings	344,961	227,333
Subordinated notes, net	59,150	65,650
Estimated fair value \| Level 1
Financial Assets
Cash and due from banks	391,009	77,819
Interest-bearing time deposits with other banks		1,025
Estimated fair value \| Level 2
Financial Assets
Interest-bearing time deposits with other banks	1,031
Mortgage loans held for sale	3,890	1,368
Financial Liabilities
Time deposits	1,383,282	1,161,490
Federal Home Loan Bank borrowings	344,961	227,333
Subordinated notes, net	59,150	65,650
Estimated fair value \| Level 3
Financial Assets
Loans, net	$ 2,840,329	$ 2,978,846

Regulatory Capital Requirements - Capital adequacy requirements (Details)	Mar. 31, 2020
Regulatory Capital Requirements
Capital conservation buffer (as a percent)	2.50%

Regulatory Capital Requirements - Actual and minimum required capital amounts and ratios and Dividend Restrictions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Regulatory Capital Requirements
Required Total capital adequacy with capital conservation buffer (as a percent)	10.50%
Required Tier 1 capital adequacy with capital conservation buffer (as a percent)	8.50%
Required Common Equity capital adequacy with capital conservation buffer (as a percent)	7.00%
Cash proceeds from capital contribution	$ 50,000
Total adjusted capital to risk-weighted assets, Amount
Actual	413,905	$ 419,327
For Capital Adequacy Purposes	$ 156,553	$ 156,081
Total adjusted capital to risk-weighted assets, Ratio
Actual (as a percent)	21.15%	21.49%
For Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Tier 1 (core) capital to risk-weighted assets, Amount
Actual	$ 327,917	$ 332,418
For Capital Adequacy Purposes	$ 117,415	$ 117,061
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual (as a percent)	16.76%	17.04%
For Capital Adequacy Purposes (as a percent)	6.00%	6.00%
Common Equity Tier 1 (CET1), Amount
Actual	$ 327,917	$ 332,418
For Capital Adequacy Purposes	$ 88,061	$ 87,796
Common Equity Tier 1 (CET1), Ratio
Actual (as a percent)	16.76%	17.04%
For Capital Adequacy Purposes (as a percent)	4.50%	4.50%
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 327,917	$ 332,418
For Capital Adequacy Purposes	$ 131,795	$ 131,471
Tier 1 (core) capital to adjusted tangible assets, Ratio
Actual (as a percent)	9.95%	10.11%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
Dividend Restrictions
Minimum percentage of assets be maintained as per Qualified Thrift Lender ("QTL") test	65.00%
Retained earnings available for distribution to Sterling Bancorp by its banking subsidiary as dividends	$ 79,036
Bank
Regulatory Capital Requirements
Required Total capital adequacy with capital conservation buffer (as a percent)	10.50%
Required Tier 1 capital adequacy with capital conservation buffer (as a percent)	8.50%
Required Common Equity capital adequacy with capital conservation buffer (as a percent)	7.00%
Total adjusted capital to risk-weighted assets, Amount
Actual	$ 396,945	$ 346,985
For Capital Adequacy Purposes	155,911	155,809
To be Well Capitalized	$ 194,889	$ 194,761
Total adjusted capital to risk-weighted assets, Ratio
Actual (as a percent)	20.37%	17.82%
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	$ 372,307	$ 325,255
For Capital Adequacy Purposes	116,933	116,857
To be Well Capitalized	$ 155,809	$ 155,809
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual (as a percent)	19.10%	16.70%
For Capital Adequacy Purposes (as a percent)	6.00%	6.00%
To be Well Capitalized (as a percent)	8.00%	8.00%
Common Equity Tier 1 (CET1), Amount
Actual	$ 372,307	$ 325,255
For Capital Adequacy Purposes	87,700	87,643
To be Well Capitalized	$ 126,595	$ 126,595
Common Equity Tier 1 (CET1), Ratio
Actual (as a percent)	19.10%	16.70%
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	$ 372,307	$ 325,255
For Capital Adequacy Purposes	131,681	131,469
To be Well Capitalized	$ 164,337	$ 164,337
Tier 1 (core) capital to adjusted tangible assets, Ratio
Actual (as a percent)	11.31%	9.90%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To be Well Capitalized (as a percent)	5.00%	5.00%

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Board of Directors \| Charitable donation to foundation
Related party transactions
Amount of related party transaction, expense	$ 225	$ 225
Controlling shareholders
Related party transactions
Payments under leases	60	59
Sublease income	69	68
Controlling shareholders \| Data processing and programming services provided
Related party transactions
Amount of related party transaction, revenue	$ 27	$ 27

Commitments and Contingencies - Unfunded Commitments to Extend Credit and Standby Letters of Credit (Details) $ in Thousands		3 Months Ended
	Jul. 28, 2020 item	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Commitments and Contingencies
Outstanding principal balance		$ 2,799,645	$ 2,891,530
Loss contingency from legal proceedings
Commitments and Contingencies
Accrued liability		25,000	25,000
Demand letter from purported stockholders
Commitments and Contingencies
Number of law firms \| item	2
Threshold period for responding to Demand letter	90 days
Residential real estate
Commitments and Contingencies
Mortgage loan repurchase liability		7,823
Outstanding principal balance		713,427	759,568
Unfunded Commitments to Extend Credit \| Residential real estate
Commitments and Contingencies
Outstanding commitments regarding fixed rate loans		49,123
Outstanding commitments with varying interest rates		$ 38,640
Unfunded Commitments to Extend Credit \| Residential real estate \| Minimum
Commitments and Contingencies
Fixed interest rate (as a percent)		2.375%
Maturity period		15 years
Variable interest rate (as a percentage)		3.375%
Maturity period for variable interest loans		15 years
Unfunded Commitments to Extend Credit \| Residential real estate \| Maximum
Commitments and Contingencies
Fixed interest rate (as a percent)		4.50%
Maturity period		30 years
Variable interest rate (as a percentage)		6.75%
Maturity period for variable interest loans		30 years
Commitments to make loans
Commitments and Contingencies
Unused lines of credit		$ 87,762	76,927
Unused lines of credit
Commitments and Contingencies
Outstanding commitments regarding fixed rate loans		438
Outstanding commitments with varying interest rates		244,410
Unused lines of credit		$ 244,848	220,553
Unused lines of credit \| Minimum
Commitments and Contingencies
Fixed interest rate (as a percent)		5.25%
Maturity period		3 months
Variable interest rate (as a percentage)		3.25%
Maturity period for variable interest loans		1 month
Unused lines of credit \| Maximum
Commitments and Contingencies
Fixed interest rate (as a percent)		18.00%
Maturity period		7 years
Variable interest rate (as a percentage)		8.50%
Maturity period for variable interest loans		15 years
Unused lines of credit \| Residential real estate
Commitments and Contingencies
Unused lines of credit		$ 20,283
Unused lines of credit \| Construction
Commitments and Contingencies
Unused lines of credit		212,448
Unused lines of credit \| Commercial lines of credit
Commitments and Contingencies
Unused lines of credit		11,716
Unused lines of credit \| Other consumer
Commitments and Contingencies
Unused lines of credit		401
Standby letters of credit
Commitments and Contingencies
Unused lines of credit		$ 24	$ 24

Subsequent Events (Details) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 05, 2020 USD ($) $ / shares shares	Jul. 31, 2020 USD ($) item	May 31, 2020 USD ($) item	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Oct. 09, 2020 shares	Jun. 30, 2020	Dec. 31, 2019 USD ($)
Subsequent events
Other Noninterest Expense				$ 1,425	$ 1,654
Outstanding principal balance				$ 2,799,645				$ 2,891,530
Subsequent event
Subsequent events
Nonvested restricted stock awards forfeited \| shares						93,029
Options to purchase shares of stock forfeited \| shares						123,238
Subsequent event \| Thomas M. O'Brien
Subsequent events
Number of awards granted \| shares	300,000
Exercise price \| $ / shares	$ 4.00
Vesting period	3 years
Maximum term of options	10 years
Total unrecognized compensation cost - stock options	$ 354
Unrecognized compensation cost related to nonvested awards, expected weighted-average recognition period	1 year 18 days
Subsequent event \| Thomas M. O'Brien \| Awards vesting on January 1, 2021
Subsequent events
Percentage of awards vesting	33.00%
Subsequent event \| Thomas M. O'Brien \| Awards vesting on the first anniversary of the grant date
Subsequent events
Percentage of awards vesting	33.00%
Subsequent event \| Thomas M. O'Brien \| Awards vesting on January 1, 2022
Subsequent events
Percentage of awards vesting	33.00%
Subsequent event \| Advantage Loan Program
Subsequent events
Number of loan pools negotiated to be repurchased \| item		3	2
Percentage of loans offered to each of investors to repurchase							100.00%
Other Noninterest Expense			$ 136
Outstanding principal balance			$ 38,704
Number of third party investors accepted to repurchase \| item		3
Subsequent event \| Advantage Loan Program loans repurchased
Subsequent events
Other Noninterest Expense		$ 135
Outstanding principal balance		19,251
Loss charged against mortgage repurchase liability		$ 433