Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'PACIFIC PREMIER BANCORP INC | ' |
Entity Central Index Key | '0001028918 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,641,991 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Cash and due from banks | $61,393 | $59,325 | $58,216 |
Federal funds sold | 26 | 27 | 27 |
Cash and cash equivalents | 61,419 | 59,352 | 58,243 |
Investment securities available for sale | 282,846 | 84,066 | 114,250 |
FHLB/Federal Reserve Bank/TIB stock, at cost | 10,827 | 11,247 | 12,191 |
Loans held for sale, net | 3,176 | 3,681 | 4,728 |
Loans held for investment | 1,138,969 | 982,207 | 859,373 |
Allowance for loan losses | -7,994 | -7,994 | -7,658 |
Loans held for investment, net | 1,130,975 | 974,213 | 851,715 |
Accrued interest receivable | 5,629 | 4,126 | 3,933 |
Other real estate owned | 1,186 | 2,258 | 5,521 |
Premises and equipment | 9,829 | 8,575 | 10,067 |
Deferred income taxes | 9,029 | 6,887 | 5,515 |
Bank owned life insurance | 23,862 | 13,485 | 13,362 |
Intangible assets | 6,881 | 2,626 | 2,703 |
Goodwill | 17,428 | ' | ' |
Other assets | 5,933 | 3,276 | 7,108 |
TOTAL ASSETS | 1,569,020 | 1,173,792 | 1,089,336 |
Deposit accounts: | ' | ' | ' |
Noninterest bearing | 363,606 | 213,636 | 211,410 |
Interest bearing | 920,528 | 691,132 | 684,460 |
Total deposits | 1,284,134 | 904,768 | 895,870 |
FHLB advances and other borrowings | 86,474 | 115,500 | 75,500 |
Subordinated debentures | 10,310 | 10,310 | 10,310 |
Accrued expenses and other liabilities | 16,948 | 8,697 | 7,770 |
TOTAL LIABILITIES | 1,397,866 | 1,039,275 | 989,450 |
STOCKHOLDERS' EQUITY: | ' | ' | ' |
Common stock, $.01 par value; 25,000,000 shares authorized; 16,641,991 shares at September 30, 2013, 13,661,648 shares at December 31, 2012 and 10,343,434 shares at September 30, 2012 issued and outstanding | 166 | 137 | 103 |
Additional paid-in capital | 143,014 | 107,453 | 76,414 |
Retained earnings | 30,611 | 25,822 | 22,011 |
Accumulated other comprehensive income (loss), net of tax (benefit) of ($1,843) at September 30, 2013, $772 at December 31, 2012 and $949 at September 30, 2012 | -2,637 | 1,105 | 1,358 |
TOTAL STOCKHOLDERS' EQUITY | 171,154 | 134,517 | 99,886 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,569,020 | $1,173,792 | $1,089,336 |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Common stock, shares issued | 16,641,991 | 10,343,434 | 13,661,648 |
Common stock, shares outstanding | 16,641,991 | 10,343,434 | 13,661,648 |
Accumulated other comprehensive income, tax (in dollars) | ($1,843) | $949 | $772 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
INTEREST INCOME | ' | ' | ' | ' |
Loans | $14,420 | $12,847 | $41,504 | $36,182 |
Investment securities and other interest-earning assets | 1,954 | 779 | 4,041 | 2,606 |
Total interest income | 16,374 | 13,626 | 45,545 | 38,788 |
INTEREST EXPENSE | ' | ' | ' | ' |
Deposits | 1,045 | 1,444 | 3,097 | 4,647 |
FHLB advances and other borrowings | 244 | 247 | 722 | 717 |
Subordinated debentures | 77 | 81 | 230 | 247 |
Total interest expense | 1,366 | 1,772 | 4,049 | 5,611 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 15,008 | 11,854 | 41,496 | 33,177 |
PROVISION FOR LOAN LOSSES | 646 | 145 | 1,264 | 145 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 14,362 | 11,709 | 40,232 | 33,032 |
NONINTEREST INCOME | ' | ' | ' | ' |
Loan servicing fees | 237 | 224 | 881 | 615 |
Deposit fees | 485 | 486 | 1,382 | 1,459 |
Net gain (loss) from sales of loans | 982 | -41 | 1,927 | -31 |
Net gain from sales of investment securities | 305 | 857 | 1,373 | 1,031 |
Other-than-temporary impairment recovery (loss) on investment securities, net | 16 | -36 | -19 | -118 |
Gain on FDIC transaction | ' | ' | ' | 5,340 |
Other income | 296 | 420 | 932 | 1,082 |
Total noninterest income | 2,321 | 1,910 | 6,476 | 9,378 |
NONINTEREST EXPENSE | ' | ' | ' | ' |
Compensation and benefits | 5,948 | 4,367 | 16,732 | 11,834 |
Premises and occupancy | 1,600 | 1,063 | 4,222 | 2,922 |
Data processing and communications | 824 | 582 | 2,214 | 1,766 |
Other real estate owned operations, net | -1 | 244 | 610 | 981 |
FDIC insurance premiums | 201 | 165 | 537 | 466 |
Legal, audit and professional expense | 679 | 473 | 1,523 | 1,511 |
Marketing expense | 307 | 225 | 777 | 704 |
Office and postage expense | 375 | 232 | 960 | 612 |
Loan expense | 282 | 219 | 714 | 632 |
Deposit expense | 497 | 38 | 1,172 | 136 |
Merger related expense | ' | ' | 6,723 | ' |
Other expense | 1,059 | 423 | 2,622 | 1,313 |
Total noninterest expense | 11,771 | 8,031 | 38,806 | 22,877 |
NET INCOME BEFORE INCOME TAX | 4,912 | 5,588 | 7,902 | 19,533 |
INCOME TAX | 1,846 | 2,126 | 3,113 | 7,568 |
NET INCOME | $3,066 | $3,462 | $4,789 | $11,965 |
EARNINGS PER SHARE | ' | ' | ' | ' |
Basic (in dollars per share) | $0.19 | $0.34 | $0.31 | $1.16 |
Diluted (in dollars per share) | $0.18 | $0.32 | $0.29 | $1.12 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ' | ' | ' | ' |
Basic (in shares) | 16,640,471 | 10,330,814 | 15,512,508 | 10,332,223 |
Diluted (in shares) | 17,482,230 | 10,832,934 | 16,314,701 | 10,709,822 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' | ||||
Net income | $3,066 | $3,462 | $4,789 | $11,965 | ||||
Other comprehensive income (loss), net of tax (benefit): | ' | ' | ' | ' | ||||
Unrealized holding gains on securities arising during the period | -1,966 | -519 | -7,730 | 737 | ||||
Reclassification adjustment for net gain on sale of securities included in net income | 305 | [1] | 857 | [1] | 1,373 | [1] | 1,031 | [1] |
Income tax (benefit) | -683 | 139 | -2,615 | 728 | ||||
Net unrealized gain (loss) on securities, net of tax | -978 | 199 | -3,742 | 1,040 | ||||
Comprehensive income | 2,088 | 3,661 | 1,047 | 13,005 | ||||
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | $126 | $353 | $564 | $424 | ||||
[1] | Income tax expense associated with the reclassification adjustment for the three months ended September 30, 2013 and 2012 was $126 and $353, respectively, and the nine months ended September 30, 2013 and 2012 was $564 and $424, respectively. |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $86,777 | $103 | $76,310 | $10,046 | $318 |
Balance (in shares) at Dec. 31, 2011 | ' | 10,337,626 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 11,965 | ' | ' | 11,965 | ' |
Other comprehensive income (loss) | 1,040 | ' | ' | ' | 1,040 |
Share-based compensation expense | 96 | ' | 96 | ' | ' |
Common stock repurchased and retired | -102 | ' | -102 | ' | ' |
Common stock repurchased and retired (in shares) | ' | -13,022 | ' | ' | ' |
Stock options exercised | 110 | ' | 110 | ' | ' |
Stock options exercised (in shares) | ' | 18,830 | ' | ' | ' |
Balance at Sep. 30, 2012 | 99,886 | 103 | 76,414 | 22,011 | 1,358 |
Balance (in shares) at Sep. 30, 2012 | 10,343,434 | 10,343,434 | ' | ' | ' |
Balance at Dec. 31, 2012 | 134,517 | 137 | 107,453 | 25,822 | 1,105 |
Balance (in shares) at Dec. 31, 2012 | 13,661,648 | 13,661,648 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 4,789 | ' | ' | 4,789 | ' |
Other comprehensive income (loss) | -3,742 | ' | ' | ' | -3,742 |
Share-based compensation expense | 680 | ' | 680 | ' | ' |
Common stock repurchased and retired | -41 | ' | -41 | ' | ' |
Common stock repurchased and retired (in shares) | ' | -10,960 | ' | ' | ' |
Common stock issued | 34,924 | 29 | 34,895 | ' | ' |
Common stock issued (in shares) | ' | 2,972,472 | ' | ' | ' |
Stock options exercised | 27 | ' | 27 | ' | ' |
Stock options exercised (in shares) | ' | 18,831 | ' | ' | ' |
Balance at Sep. 30, 2013 | $171,154 | $166 | $143,014 | $30,611 | ($2,637) |
Balance (in shares) at Sep. 30, 2013 | 16,641,991 | 16,641,991 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $4,789 | $11,965 |
Adjustments to net income: | ' | ' |
Depreciation and amortization expense | 1,423 | 985 |
Provision for loan losses | 1,264 | 145 |
Share-based compensation expense | 680 | 96 |
Loss on sale and disposal of premises and equipment | 2 | ' |
Loss (gain) on sale of other real estate owned | 226 | 341 |
Write down of other real estate owned | 354 | 390 |
Amortization of premium/discounts on securities held for sale, net | 2,319 | 627 |
Amortization of loan mark-to-market discount from FDIC transaction | -2,032 | -1,570 |
Gain on sale of loans held for sale | ' | -80 |
Gain on sale of investment securities available for sale | -1,373 | -1,031 |
Other-than-temporary impairment loss on investment securities, net | 19 | 118 |
Gain on sale of loans held for investment | -1,927 | 111 |
Purchase and origination of loans held for sale | ' | -11,005 |
Recoveries on loans | 344 | 198 |
Principal payments from loans held for sale | 505 | 6,225 |
Gain on FDIC transaction | ' | -5,340 |
Deferred income tax provision | -2,142 | 2,755 |
Change in accrued expenses and other liabilities, net | 5,562 | 1,106 |
Income from bank owned life insurance, net | -470 | -385 |
Change in accrued interest receivable and other assets, net | 1,196 | -5,577 |
Net cash provided by operating activities | 10,739 | 74 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Proceeds from sale and principal payments on loans held for investment | 131,619 | 142,907 |
Net change in undisbursed loan funds | 246,814 | 71,304 |
Purchase and origination of loans held for investment | -463,706 | -267,805 |
Proceeds from sale of other real estate owned | 1,488 | 9,663 |
Principal payments on securities available for sale | 27,528 | 13,033 |
Purchase of securities available for sale | -98,799 | -96,438 |
Proceeds from sale or maturity of securities available for sale | 212,314 | 86,919 |
Purchases of premises and equipment | -3,010 | -1,233 |
Purchase of Federal Reserve Bank stock | -1,276 | 63 |
Redemption of FHLB stock | 2,349 | 1,611 |
Cash acquired in Palm Desert National acquisition | ' | 39,491 |
Cash acquired in acquisitions, net | 138,751 | ' |
Net cash provided by investing activities | 194,072 | -485 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Net (decrease) increase in deposit accounts | -161,359 | -48,589 |
Repayment of FHLB advances and other borrowings | -45,931 | ' |
Proceeds from FHLB advances | ' | 47,000 |
Proceeds from issuance of common stock, net of issuance cost | 4,560 | ' |
Proceeds from exercise of stock options | 27 | 110 |
Repurchase of common stock | -41 | -102 |
Net cash (used in) provided by financing activities | -202,744 | -1,581 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,067 | -1,992 |
CASH AND CASH EQUIVALENTS, beginning of period | 59,352 | 60,235 |
CASH AND CASH EQUIVALENTS, end of period | 61,419 | 58,243 |
SUPPLEMENTAL CASH FLOW DISCLOSURES | ' | ' |
Interest paid | 4,012 | 5,549 |
Income taxes paid | 6,825 | 6,075 |
Assets acquired (liabilities assumed and capital created) in acquisitions (See Note 4): | ' | ' |
Investment securities | 347,196 | 101 |
Federal Reserve Bank/FHLB/TIB Stock | 1,765 | 1,390 |
FDIC receivable | ' | 167 |
Loans | 68,815 | 63,773 |
Core deposit intangible | 4,766 | 840 |
Other real estate owned | 752 | 11,533 |
Goodwill | 18,234 | ' |
Fixed assets | 1,446 | ' |
Other assets | 12,468 | 3,656 |
Deposits | -540,725 | -115,582 |
Other borrowings | -16,905 | ' |
Other liabilities | -7,199 | -29 |
Additional paid-in capital | -29,364 | ' |
NONCASH INVESTING ACTIVITIES DURING THE PERIOD | ' | ' |
Transfers from loans to other real estate owned | 244 | 3,151 |
Investment securities available for sale purchased and not settled | $0 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
Note 1 — Basis of Presentation | |
The consolidated financial statements include the accounts of Pacific Premier Bancorp, Inc. (the “Corporation”) and its wholly owned subsidiaries, including Pacific Premier Bank (the “Bank”) (collectively, the “Company,” “we,” “our” or “us”). All significant intercompany accounts and transactions have been eliminated in consolidation. | |
In the opinion of management, the consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2013, December 31, 2012, and September 30, 2012, the results of its operations and comprehensive income for the three and nine months ended September 30, 2013 and 2012 and the changes in stockholders’ equity and cash flows for the three and nine months ended September 30, 2013 and 2012. Operating results or comprehensive income for the three and nine months ended September 30, 2013 are not necessarily indicative of the results or comprehensive income that may be expected for any other interim period or the full year ending December 31, 2013. | |
Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as amended (the “2012 Annual Report”). | |
The Company accounts for its investments in its wholly owned special purpose entity, PPBI Trust I, under the equity method whereby the subsidiary’s net earnings are recognized in the Company’s statement of operations. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | ' |
Note 2 — Recently Issued Accounting Pronouncements | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities”. ASU 2011-11 affects all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information is intended to enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. The amended guidance is effective for interim and annual periods beginning after January 1, 2013 and should be applied retrospectively to all periods presented. The adoption of the disclosure requirements had no impact on the Company’s consolidated financial statements. | |
In October 2012, the FASB issued ASU 2012-06, “Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution.” The amendments in this update clarify the applicable guidance for subsequently measuring an indemnification asset recognized as a result of a government-assisted acquisition of a financial institution. The update provides that changes in cash flows expected to be collected on the indemnification asset arising subsequent to initial recognition as a result of changes in cash flows expected to be collected on the related indemnified assets should be accounted for on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement. The Company is required to adopt this update prospectively for the quarter ending September 30, 2013. The requirements of the update are consistent with the Company’s existing accounting policy; therefore, adoption has no impact on the Company’s consolidated financial position, results of operations or cash flows. | |
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The adoption of the disclosure requirements had no impact on the Company’s consolidated financial statements. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies | ' |
Significant Accounting Policies | ' |
Note 3 — Significant Accounting Policies | |
Certain Acquired Loans: As part of business acquisitions, the Bank acquires certain loans that have shown evidence of credit deterioration since origination. These acquired loans are recorded at the allocated fair value, such that there is no carryover of the seller’s allowance for loan losses. Such acquired loans are accounted for individually. The Bank estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. | |
Goodwill and Core Deposit Intangible: Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate the necessity for such impairment tests to be performed. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. | |
Core deposit intangible assets arising from whole bank acquisitions are amortized on an accelerated method over their estimated useful lives, which range from 8 to 10 years. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Acquisitions | ' | ||||||||||
Acquisitions | ' | ||||||||||
Note 4 — Acquisitions | |||||||||||
San Diego Trust Bank Acquisition | |||||||||||
On June 25, 2013, the Company completed its acquisition of San Diego Trust Bank (“SDTB”) in exchange for consideration valued at $30.6 million which consisted of $16.2 million of cash and 1,198,255 shares of the Corporation’s common stock. | |||||||||||
SDTB was a San Diego, California based state-chartered bank. The acquisition was an opportunity for the Company to acquire a banking network that complemented our existing banking franchise and expanded into a new market area. Additionally, the SDTB acquisition improved the Company’s deposit base by lowering our cost of deposits and providing an opportunity to accelerate future core deposit growth in the San Diego, California, market area. | |||||||||||
Goodwill in the amount of $6.4 million was recognized in this acquisition. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill recognized in this transaction is not deductible for income tax purposes. | |||||||||||
The following table represents the assets acquired and liabilities assumed of SDTB as of June 25, 2013 and the provisional fair value adjustments and amounts recorded by the Company in 2013 under the acquisition method of accounting: | |||||||||||
SDTB | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 30,252 | $ | — | $ | 30,252 | |||||
Investment securities | 124,960 | (155 | ) | 124,805 | |||||||
Loans, gross | 42,945 | (552 | ) | 42,393 | |||||||
Allowance for loan losses | (1,013 | ) | 1,013 | — | |||||||
Other real estate owned | 752 | — | 752 | ||||||||
Core deposit intangible | — | 2,836 | 2,836 | ||||||||
Other assets | 9,856 | — | 9,856 | ||||||||
Total assets acquired | $ | 207,752 | $ | 3,142 | $ | 210,894 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 183,901 | $ | 6 | $ | 183,907 | |||||
Deferred tax liability (asset) | (333 | ) | 1,255 | 922 | |||||||
Other liabilities | 1,823 | — | 1,823 | ||||||||
Total liabilities assumed | 185,391 | 1,261 | 186,652 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 22,361 | $ | 1,881 | 24,242 | ||||||
Consideration paid | 30,622 | ||||||||||
Goodwill recognized | $ | 6,380 | |||||||||
The Company accounted for these transactions under the acquisition method of accounting which requires purchased assets and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of the core deposit intangible, securities and deposits with the assistance of third-party valuations. The fair value of other real estate owned (“OREO”) was based on recent appraisals of the properties. | |||||||||||
The estimated fair values are subject to refinement as additional information relative to the closing date fair values become available through the measurement period, which can extend for up to one year after the closing date of the transaction. While additional significant changes to the closing date fair values are not expected, any information relative to the changes in these fair values will be evaluated to determine if such changes are due to events and circumstances that existed as of the acquisition date. During the measurement period, any such changes will be recorded as part of the closing date fair value. | |||||||||||
First Association Bank Acquisition | |||||||||||
On March 15, 2013, the Company completed its acquisition of First Association Bank (“FAB”) in exchange for consideration valued as of the closing at $57.9 million which consisted of $43.0 million of cash and 1,279,217 shares of the Corporation’s common stock. | |||||||||||
FAB was a Dallas, Texas, based bank which specialized in providing commercial banking services to home owner association (“HOA”) management companies throughout the United States. The FAB acquisition was an opportunity for the Company to acquire a highly efficient, consistently profitable and niche-focused business that complimented our banking franchise. Additionally, this acquisition improved the Company’s deposit base by lowering our cost of deposits and providing a platform to accelerate future core deposit growth from HOAs. | |||||||||||
Goodwill in the amount of $11.9 million was recognized in this acquisition. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill recognized in this transaction is not deductible for income tax purposes. | |||||||||||
The following table represents the assets acquired and liabilities assumed of FAB as of March 15, 2013, the provisional fair value adjustments and amounts recorded by the Company in 2013 under the acquisition method of accounting: | |||||||||||
FAB | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 167,663 | $ | — | $ | 167,663 | |||||
Investment securities | 219,913 | 2,478 | 222,391 | ||||||||
Loans, gross | 26,264 | 158 | 26,422 | ||||||||
Allowance for loan losses | (224 | ) | 224 | — | |||||||
Core deposit intangible | — | 1,930 | 1,930 | ||||||||
Other assets | 5,823 | — | 5,823 | ||||||||
Total assets acquired | $ | 419,439 | $ | 4,790 | $ | 424,229 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 356,737 | $ | 81 | $ | 356,818 | |||||
Borrowings | 16,905 | — | 16,905 | ||||||||
Deferred tax liability | — | 3,918 | 3,918 | ||||||||
Other Liabilities | 536 | — | 536 | ||||||||
Total liabilities assumed | 374,178 | 3,999 | 378,177 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 45,261 | $ | 791 | 46,052 | ||||||
Consideration paid | 57,906 | ||||||||||
Goodwill recognized | $ | 11,854 | |||||||||
There were no purchased credit impaired loans acquired from FAB or SDTB. For loans acquired from FAB and SDTB, the contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates were as follows: | |||||||||||
Acquired Loans | |||||||||||
(dollars in thousands) | |||||||||||
Contractual amounts due | $ | 79,358 | |||||||||
Cash flows not expected to be collected | — | ||||||||||
Expected cash flows | 79,358 | ||||||||||
Interest component of expected cash flows | 10,543 | ||||||||||
Fair value of acquired loans | $ | 68,815 | |||||||||
In accordance with generally accepted accounting principles there was no carryover of the allowance for loan losses that had been previously recorded by FAB or SDTB. | |||||||||||
The operating results of the Company for the nine months ending September 30, 2013 include the operating results of FAB and SDTB since their respective acquisition dates. The following table presents the net interest and other income, net income and earnings per share as if the merger with FAB and SDTB were effective as of January 1, 2013 and 2012. There were no material, nonrecurring adjustments to the pro forma net interest and other income, net income and earnings per share presented below: | |||||||||||
Nine months Ended September 30, | |||||||||||
2013 | 2012 | ||||||||||
Net interest and other income | $ | 52,738 | $ | 55,791 | |||||||
Net income | 5,648 | 14,902 | |||||||||
Basic earnings per share | $ | 0.36 | $ | 1.16 | |||||||
Diluted earnings per share | $ | 0.35 | $ | 1.13 | |||||||
Palm Desert National Bank Acquisition | |||||||||||
Effective April 27, 2012, the Bank acquired certain assets and assumed certain liabilities of Palm Desert National Bank (“Palm Desert National”) from the Federal Deposit Insurance Corporation (“FDIC”) as receiver for Palm Desert National (the “Palm Desert National Acquisition”), pursuant to the terms of a purchase and assumption agreement entered into by the Bank and the FDIC on April 27, 2012. The Palm Desert National Acquisition included one branch of Palm Desert National that became a branch of the Bank upon consummation of the Palm Desert National Acquisition. The Bank did not enter into any loss sharing agreements with the FDIC in connection the Palm Desert National Acquisition. As a result of the Palm Desert National Acquisition, the Bank acquired and recorded at the acquisition date certain assets with a fair value of approximately $120.9 million, including $63.8 million of loans, $39.5 million of cash and cash equivalents, $11.5 million of other real estate owned (“OREO”), $1.5 million in investment securities, including Federal Home Loan Bank (“FHLB”) stock and Federal Reserve Bank stock, $840,000 of a core deposit intangible and $3.8 million of other types of assets. Liabilities with a fair value of approximately $118.0 million, including $50.1 million in deposit transaction accounts, $30.8 million in retail certificates of deposit, $34.1 million in whole sale certificates of deposits, which were purposefully run off during the second quarter of 2012, $2.4 million in deferred tax liability and $578,000 of other liabilities. The fair values of the assets acquired and liabilities assumed were determined based on the requirements of FASB ASC Topic 820: Fair Value Measurements and Disclosures. | |||||||||||
Canyon National Bank Acquisition | |||||||||||
Effective February 11, 2011, the Bank acquired certain assets and assumed certain liabilities of Canyon National Bank (“Canyon National”) from the FDIC as receiver for Canyon National (the “Canyon National Acquisition”), pursuant to the terms of a purchase and assumption agreement entered into by the Bank and the FDIC on February 11, 2011. The Canyon National Acquisition included the three branches of Canyon National, all of which became branches of the Bank upon consummation of the Canyon National Acquisition. The Bank did not enter into any loss sharing agreements with the FDIC in connection with the Canyon National Acquisition. As a result of the Canyon National Acquisition, the Bank acquired and received certain assets with a fair value of approximately $208.9 million, including $149.7 million of loans, $16.1 million of a FDIC receivable, $13.2 million of cash and cash equivalents, $12.8 million of investment securities, $12.0 million of OREO, $2.3 million of a core deposit intangibles, $1.5 million of other assets and $1.3 million of FHLB and Federal Reserve Bank stock. Liabilities with a fair value of approximately $206.6 million were also assumed, including $204.7 million of deposits, $1.9 million in deferred tax liability and $39,000 of other liabilities. The fair values of the assets acquired and liabilities assumed were determined based on the requirements of FASB ASC Topic 820: Fair Value Measurements and Disclosures. |
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
Note 5 — Investment Securities | ||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of securities were as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Gain | Loss | Fair Value | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 73 | $ | 9 | $ | — | $ | 82 | ||||||||||||||||||||||||
Municipal bonds | 95,971 | 709 | (1,795 | ) | 94,885 | |||||||||||||||||||||||||||
Mortgage-backed securities | 191,282 | 182 | (3,585 | ) | 187,879 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 287,326 | $ | 900 | $ | (5,380 | ) | $ | 282,846 | |||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized | Unrealized | Estimated Fair | |||||||||||||||||||||||||||||
Gain | Loss | Value | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 147 | $ | 12 | $ | — | $ | 159 | ||||||||||||||||||||||||
Municipal bonds | 25,401 | 1,186 | (1 | ) | 26,586 | |||||||||||||||||||||||||||
Mortgage-backed securities | 56,641 | 1,162 | (482 | ) | 57,321 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 82,189 | $ | 2,360 | $ | (483 | ) | $ | 84,066 | |||||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized | Unrealized | Estimated Fair | |||||||||||||||||||||||||||||
Gain | Loss | Value | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 147 | $ | 13 | $ | — | $ | 160 | ||||||||||||||||||||||||
Municipal bonds | 55,445 | 1,667 | (15 | ) | 57,097 | |||||||||||||||||||||||||||
Mortgage-backed securities | 56,351 | 1,121 | (479 | ) | 56,993 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 111,943 | $ | 2,801 | $ | (494 | ) | $ | 114,250 | |||||||||||||||||||||||
At September 30, 2013, the Company had a $7.5 million investment in FHLB stock carried at cost. During the nine months of 2013, the FHLB has repurchased $3.0 million of the Company’s excess FHLB stock through its stock repurchase program. | ||||||||||||||||||||||||||||||||
At September 30, 2013, mortgage-backed securities (“MBS”) with an estimated par value of $34.9 million and a fair value of $36.0 million were pledged as collateral for the Bank’s three reverse repurchase agreements which totaled $28.5 million. | ||||||||||||||||||||||||||||||||
The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous loss position. | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 131 | $ | 60,183 | $ | (1,795 | ) | — | $ | — | $ | — | 131 | $ | 60,183 | $ | (1,795 | ) | |||||||||||||||
Mortgage-backed securities | 39 | 136,513 | (2,725 | ) | 1 | 13,117 | (860 | ) | 40 | 149,630 | (3,585 | ) | ||||||||||||||||||||
Total | 170 | $ | 196,696 | $ | (4,520 | ) | 1 | $ | 13,117 | $ | (860 | ) | 171 | $ | 209,813 | $ | (5,380 | ) | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 1 | $ | 292 | $ | (1 | ) | — | $ | — | $ | — | 1 | $ | 292 | $ | (1 | ) | |||||||||||||||
Mortgage-backed securities | 2 | 15,128 | (152 | ) | 31 | 1,012 | (330 | ) | 33 | 16,140 | (482 | ) | ||||||||||||||||||||
Total | 3 | $ | 15,420 | $ | (153 | ) | 31 | $ | 1,012 | $ | (330 | ) | 34 | $ | 16,432 | $ | (483 | ) | ||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 9 | $ | 2,775 | $ | (15 | ) | — | $ | — | $ | — | 9 | $ | 2,775 | $ | (15 | ) | |||||||||||||||
Mortgage-backed securities | 4 | 9,025 | (33 | ) | 34 | 1,004 | (446 | ) | 38 | 10,029 | (479 | ) | ||||||||||||||||||||
Total | 13 | $ | 11,800 | $ | (48 | ) | 34 | $ | 1,004 | $ | (446 | ) | 47 | $ | 12,804 | $ | (494 | ) | ||||||||||||||
The amortized cost and estimated fair value of investment securities available for sale at September 30, 2013, by contractual maturity are shown in the table below. | ||||||||||||||||||||||||||||||||
One Year | More than One | More than Five Years | More than | |||||||||||||||||||||||||||||
or Less | Year to Five Years | to Ten Years | Ten Years | Total | ||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | 73 | $ | 82 | $ | — | $ | — | $ | — | $ | — | $ | 73 | $ | 82 | ||||||||||||
Municipal bonds | — | — | 9,995 | 9,905 | 42,734 | 42,392 | 43,242 | 42,588 | 95,971 | 94,885 | ||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | 14,153 | 14,038 | 177,129 | 173,841 | 191,282 | 187,879 | ||||||||||||||||||||||
Total investment securities available for sale | — | — | 10,068 | 9,987 | 56,887 | 56,430 | 220,371 | 216,429 | 287,326 | 282,846 | ||||||||||||||||||||||
Any temporary impairment is a result of the change in market interest rates and not the underlying issuers’ ability to repay. The Company has the intent and ability to hold these securities until the temporary impairment is eliminated. Accordingly, the Company has not recognized the temporary impairment in earnings. | ||||||||||||||||||||||||||||||||
Unrealized gains and losses on investment securities available for sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At September 30, 2013, the Company had accumulated other comprehensive loss of $4.5 million, or $2.6 million net of tax, compared to accumulated other comprehensive income of $1.9 million, or $1.1 million net of tax, at December 31, 2012. |
Loans_Held_for_Investment
Loans Held for Investment | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Loans Held for Investment | ' | ||||||||||||||||||||||
Loans Held for Investment | ' | ||||||||||||||||||||||
Note 6 — Loans Held for Investment | |||||||||||||||||||||||
The following table sets forth the composition of our loan portfolio in dollar amounts at the dates indicated: | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2012 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 173,720 | $ | 115,354 | $ | 88,105 | |||||||||||||||||
Commercial owner occupied (1) | 222,162 | 150,934 | 148,139 | ||||||||||||||||||||
SBA | 6,455 | 6,882 | 4,736 | ||||||||||||||||||||
Warehouse facilities | 49,104 | 195,761 | 112,053 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 304,979 | 253,409 | 262,046 | ||||||||||||||||||||
Multi-family | 218,929 | 156,424 | 173,484 | ||||||||||||||||||||
One-to-four family (2) | 152,667 | 97,463 | 62,771 | ||||||||||||||||||||
Construction | 2,835 | — | 308 | ||||||||||||||||||||
Land | 7,371 | 8,774 | 11,005 | ||||||||||||||||||||
Other loans | 3,793 | 1,193 | 2,191 | ||||||||||||||||||||
Total gross loans (3) | 1,142,015 | 986,194 | 864,838 | ||||||||||||||||||||
Less loans held for sale, net | 3,176 | 3,681 | 4,728 | ||||||||||||||||||||
Total gross loans held for investment | 1,138,839 | 982,513 | 860,110 | ||||||||||||||||||||
Less: | |||||||||||||||||||||||
Deferred loan origination costs (fees) and premiums (discounts), net | 130 | (306 | ) | (737 | ) | ||||||||||||||||||
Allowance for loan losses | (7,994 | ) | (7,994 | ) | (7,658 | ) | |||||||||||||||||
Loans held for investment, net | $ | 1,130,975 | $ | 974,213 | $ | 851,715 | |||||||||||||||||
(1) Majority secured by real estate. | |||||||||||||||||||||||
(2) Includes second trust deeds. | |||||||||||||||||||||||
(3) Total gross loans for September 30, 2013 are net of the unaccreted mark-to-market discounts on Canyon National loans of $2.3 million, on Palm Desert National loans of $3.7 million, and on SDTB loans of $230,000 and of the mark-to-market premium on FAB loans of $103,000. | |||||||||||||||||||||||
From time to time, we may purchase or sell loans in order to manage concentrations, maximize interest income, change risk profiles, improve returns and generate liquidity. | |||||||||||||||||||||||
The Company makes residential and commercial loans held for investment to customers located primarily in Southern California. Consequently, the underlying collateral for our loans and a borrower’s ability to repay may be impacted unfavorably by adverse changes in the economy and real estate market in the region. | |||||||||||||||||||||||
Under applicable laws and regulations, the Bank may not make secured loans to one borrower in excess of 25% of unimpaired capital plus surplus and likewise in excess of 15% for unsecured loans. These loans-to-one borrower limitations result in a dollar limitation of $45.8 million for secured loans and $27.5 million for unsecured loans at September 30, 2013. At September 30, 2013, the Bank’s largest aggregate outstanding balance of loans to one borrower was $34.9 million of secured credit. | |||||||||||||||||||||||
Purchased Credit Impaired | |||||||||||||||||||||||
The following table provides a summary of the Company’s investment in purchased credit impaired loans, acquired from Canyon National and Palm Desert National, as of the period indicated: | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Canyon | Palm Desert | Total | |||||||||||||||||||||
National | National | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 79 | $ | 174 | $ | 253 | |||||||||||||||||
Commercial owner occupied | 942 | — | 942 | ||||||||||||||||||||
SBA | — | — | — | ||||||||||||||||||||
Warehouse facilities | — | — | — | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,009 | — | 1,009 | ||||||||||||||||||||
Multi-family | — | — | — | ||||||||||||||||||||
One-to-four family | — | 21 | 21 | ||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||
Land | — | — | — | ||||||||||||||||||||
Other loans | — | — | — | ||||||||||||||||||||
Total purchase credit impaired | $ | 2,030 | $ | 195 | $ | 2,225 | |||||||||||||||||
On the acquisition date, the amount by which the undiscounted expected cash flows of the purchased credit impaired loans exceed the estimated fair value of the loan is the “accretable yield.” The accretable yield is measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the purchased credit impaired loan. At September 30, 2013, the Company had $2.2 million of purchased credit impaired loans, of which $10,000 were placed on nonaccrual status. | |||||||||||||||||||||||
The following table summarizes the accretable yield on the purchased credit impaired for the nine months ended September 30, 2013: | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Canyon National | Palm Desert National | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at the beginning of period | $ | 2,029 | $ | 247 | $ | 2,276 | |||||||||||||||||
Accretable yield at acquisition | — | — | — | ||||||||||||||||||||
Accretion | (348 | ) | (49 | ) | (397 | ) | |||||||||||||||||
Disposals and other | (31 | ) | (514 | ) | (545 | ) | |||||||||||||||||
Change in accretable yield | 157 | 448 | 605 | ||||||||||||||||||||
Balance at the end of period | $ | 1,807 | $ | 132 | $ | 1,939 | |||||||||||||||||
Impaired Loans | |||||||||||||||||||||||
The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated: | |||||||||||||||||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | |||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 186 | $ | 68 | $ | — | $ | 68 | $ | — | $ | 326 | $ | 71 | |||||||||
Commercial owner occupied | — | — | — | — | — | 153 | 18 | ||||||||||||||||
SBA | 246 | 14 | — | 14 | — | 60 | 16 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 527 | 437 | — | 437 | — | 983 | 157 | ||||||||||||||||
Multi-family | — | — | — | — | — | 144 | 2 | ||||||||||||||||
One-to-four family | 701 | 642 | 282 | 360 | 104 | 772 | 154 | ||||||||||||||||
Totals | $ | 1,660 | $ | 1,161 | $ | 282 | $ | 879 | $ | 104 | $ | 2,438 | $ | 418 | |||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | |||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 707 | $ | 593 | $ | 287 | $ | 306 | $ | 270 | $ | 203 | $ | 29 | |||||||||
Commercial owner occupied | — | — | — | — | — | 444 | — | ||||||||||||||||
SBA | 810 | 259 | — | 259 | — | 468 | 21 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 746 | 670 | — | 670 | — | 1,031 | 59 | ||||||||||||||||
Multi-family | 315 | 266 | — | 266 | — | 1,123 | 22 | ||||||||||||||||
One-to-four family | 960 | 948 | 541 | 407 | 395 | 720 | 59 | ||||||||||||||||
Totals | $ | 3,538 | $ | 2,736 | $ | 828 | $ | 1,908 | $ | 665 | $ | 3,989 | $ | 190 | |||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | |||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 59 | $ | 60 | $ | 60 | $ | — | $ | 36 | $ | 140 | $ | 3 | |||||||||
Commercial owner occupied | — | — | — | — | — | 592 | — | ||||||||||||||||
SBA | 1,368 | 309 | — | 309 | — | 518 | 37 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 507 | 460 | — | 460 | — | 1,257 | 15 | ||||||||||||||||
Multi-family | 1,437 | 1,394 | — | 1,394 | — | 1,408 | 67 | ||||||||||||||||
One-to-four family | 657 | 643 | 299 | 344 | 153 | 656 | 31 | ||||||||||||||||
Totals | $ | 4,028 | $ | 2,866 | $ | 359 | $ | 2,507 | $ | 189 | $ | 4,571 | $ | 153 | |||||||||
The Company considers a loan to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or it is determined that the likelihood of the Company receiving all scheduled payments, including interest, when due is remote. The Company has no commitments to lend additional funds to debtors whose loans have been impaired. | |||||||||||||||||||||||
The Company reviews loans for impairment when the loan is classified as substandard or worse, delinquent 90 days, or determined by management to be collateral dependent, or when the borrower files bankruptcy or is granted a troubled debt restructurings (“TDRs”). Measurement of impairment is based on the loan’s expected future cash flows discounted at the loan’s effective interest rate, measured by reference to an observable market value, if one exists, or the fair value of the collateral if the loan is deemed collateral dependent. All loans are generally charged-off at such time the loan is classified as a loss. Valuation allowances are determined on a loan-by-loan basis or by aggregating loans with similar risk characteristics. | |||||||||||||||||||||||
The following table provides additional detail on the components of impaired loans at the period end indicated: | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2012 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Nonaccruing loans | $ | 972 | $ | 1,988 | $ | 1,439 | |||||||||||||||||
Accruing loans | 189 | 748 | 1,427 | ||||||||||||||||||||
Total impaired loans | $ | 1,161 | $ | 2,736 | $ | 2,866 | |||||||||||||||||
When loans are placed on nonaccrual status all accrued interest is reversed from earnings. Payments received on nonaccrual loans are generally applied as a reduction to the loan principal balance. If the likelihood of further loss is remote, the Company will recognize interest on a cash basis only. Loans may be returned to accruing status if the Company believes that all remaining principal and interest is fully collectible and there has been at least three months of sustained repayment performance since the loan was placed on nonaccrual. | |||||||||||||||||||||||
The Company does not accrue interest on loans 90 days or more past due or when, in the opinion of management, there is reasonable doubt as to the collection of interest. The Company had impaired loans on nonaccrual status of $972,000 at September 30, 2013, $2.0 million at December 31, 2012, and $1.4 million at September 30, 2012. The Company had no loans 90 days or more past due and still accruing at September 30, 2013, December 31, 2012 or September 30, 2012. | |||||||||||||||||||||||
The Company had an immaterial amount of TDRs related to two U.S. Small Business Administration (“SBA”) loans which were all completed prior to 2011. | |||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||
As of September 30, 2013, the Company’s loan portfolio was collateralized by various forms of real estate and business assets located principally in Southern California. The Company’s loan portfolio contains concentrations of credit in multi-family real estate, commercial non-owner occupied real estate and commercial owner occupied business loans. The Bank maintains policies approved by the Bank’s Board of Directors (the “Bank Board”) that address these concentrations and continues to diversify its loan portfolio through loan originations, purchases and sales to meet approved concentration levels. While management believes that the collateral presently securing these loans is adequate, there can be no assurances that further significant deterioration in the California real estate market and economy would not expose the Company to significantly greater credit risk. | |||||||||||||||||||||||
Credit Quality and Credit Risk Management | |||||||||||||||||||||||
The Company’s credit quality is maintained and credit risk managed in two distinct areas. The first is the loan origination process, wherein the Bank underwrites credit quality and chooses which risks it is willing to accept. The second is in the ongoing oversight of the loan portfolio, where existing credit risk is measured and monitored, and where performance issues are dealt with in a timely and comprehensive fashion. | |||||||||||||||||||||||
The Company maintains a comprehensive credit policy which sets forth minimum and maximum tolerances for key elements of loan risk. The policy identifies and sets forth specific guidelines for analyzing each of the loan products the Company offers from both an individual and portfolio wide basis. The credit policy is reviewed annually by the Bank Board. The Bank’s seasoned underwriters ensure all key risk factors are analyzed with nearly all underwriting including a comprehensive global cash flow analysis of the prospective borrowers. The credit approval process mandates multiple-signature approval by the management credit committee for every loan that requires any subjective credit analysis. | |||||||||||||||||||||||
Credit risk is managed within the loan portfolio by the Company’s Portfolio Management department based on a comprehensive credit and investment review policy. This policy requires a program of financial data collection and analysis, comprehensive loan reviews, property and/or business inspections and monitoring of portfolio concentrations and trends. The Portfolio Management department also monitors asset-based lines of credit, loan covenants and other conditions associated with the Company’s business loans as a means to help identify potential credit risk. Individual loans, excluding the homogeneous loan portfolio, are reviewed at least biennially, and in most cases more often, including the assignment of a risk grade. | |||||||||||||||||||||||
Risk grades are based on a six-grade Pass scale, along with Special Mention, Substandard, Doubtful and Loss classifications as such classifications are defined by the regulatory agencies. The assignment of risk grades allows the Company to, among other things, identify the risk associated with each credit in the portfolio, and to provide a basis for estimating credit losses inherent in the portfolio. Risk grades are reviewed regularly by the Company’s Credit and Investment Review committee, and are reviewed annually by an independent third-party, as well as by regulatory agencies during scheduled examinations. | |||||||||||||||||||||||
The following provides brief definitions for risk grades assigned to loans in the portfolio: | |||||||||||||||||||||||
· Pass classifications represent assets with a level of credit quality which contain no well-defined deficiency or weakness. | |||||||||||||||||||||||
· Special Mention assets do not currently expose the Bank to a sufficient risk to warrant classification in one of the adverse categories, but possess correctable deficiency or potential weaknesses deserving management’s close attention. | |||||||||||||||||||||||
· Substandard assets are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. These assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. OREO acquired from foreclosure is also classified as substandard. | |||||||||||||||||||||||
· Doubtful credits have all the weaknesses inherent in substandard credits, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | |||||||||||||||||||||||
· Loss assets are those that are considered uncollectible and of such little value that their continuance as assets is not warranted. Amounts classified as loss are promptly charged off. | |||||||||||||||||||||||
The Portfolio Management department also manages loan performance risks, collections, workouts, bankruptcies and foreclosures. Loan performance risks are mitigated by our portfolio managers acting promptly and assertively to address problem credits when they are identified. Collection efforts are commenced immediately upon non-payment, and the portfolio managers seek to promptly determine the appropriate steps to minimize the Company’s risk of loss. When foreclosure will maximize the Company’s recovery for a non-performing loan, the portfolio managers will take appropriate action to initiate the foreclosure process. | |||||||||||||||||||||||
When a loan is graded as special mention or substandard or doubtful, the Company obtains an updated valuation of the underlying collateral. If the credit in question is also identified as impaired, a valuation allowance, if necessary, is established against such loan or a loss is recognized by a charge to the allowance for loan losses (“ALLL”) if management believes that the full amount of the Company’s recorded investment in the loan is no longer collectable. The Company typically continues to obtain updated valuations of underlying collateral for special mention and classified loans on an annual basis in order to have the most current indication of fair value. Once a loan is identified as impaired, an analysis of the underlying collateral is performed at least quarterly, and corresponding changes in any related valuation allowance are made or balances deemed to be fully uncollectable are charged-off. | |||||||||||||||||||||||
The following tables stratify the loan portfolio by the Company’s internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio as of the periods indicated: | |||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 170,840 | $ | 68 | $ | 2,812 | $ | 173,720 | |||||||||||||||
Commercial owner occupied | 207,519 | 2,632 | 12,011 | 222,162 | |||||||||||||||||||
SBA | 6,455 | — | — | 6,455 | |||||||||||||||||||
Warehouse facilities | 49,104 | — | — | 49,104 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 299,940 | 355 | 4,684 | 304,979 | |||||||||||||||||||
Multi-family | 217,897 | 513 | 519 | 218,929 | |||||||||||||||||||
One-to-four family | 151,564 | — | 1,103 | 152,667 | |||||||||||||||||||
Construction | 2,835 | — | — | 2,835 | |||||||||||||||||||
Land | 7,371 | — | — | 7,371 | |||||||||||||||||||
Other loans | 3,787 | — | 6 | 3,793 | |||||||||||||||||||
Totals | $ | 1,117,312 | $ | 3,568 | $ | 21,135 | $ | 1,142,015 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 111,895 | $ | 92 | $ | 3,367 | $ | 115,354 | |||||||||||||||
Commercial owner occupied | 136,330 | 2,674 | 11,930 | 150,934 | |||||||||||||||||||
SBA | 6,819 | — | 63 | 6,882 | |||||||||||||||||||
Warehouse facilities | 195,761 | — | — | 195,761 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 240,585 | 687 | 12,137 | 253,409 | |||||||||||||||||||
Multi-family | 143,003 | 11,583 | 1,838 | 156,424 | |||||||||||||||||||
One-to-four family | 96,061 | — | 1,402 | 97,463 | |||||||||||||||||||
Land | 8,762 | — | 12 | 8,774 | |||||||||||||||||||
Other loans | 1,177 | — | 16 | 1,193 | |||||||||||||||||||
Totals | $ | 940,393 | $ | 15,036 | $ | 30,765 | $ | 986,194 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 86,000 | $ | 847 | $ | 1,258 | $ | 88,105 | |||||||||||||||
Commercial owner occupied | 137,289 | 3,334 | 7,516 | 148,139 | |||||||||||||||||||
SBA | 4,455 | — | 281 | 4,736 | |||||||||||||||||||
Warehouse facilities | 112,053 | — | — | 112,053 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 252,216 | 663 | 9,167 | 262,046 | |||||||||||||||||||
Multi-family | 170,365 | — | 3,119 | 173,484 | |||||||||||||||||||
One-to-four family | 61,378 | — | 1,393 | 62,771 | |||||||||||||||||||
Construction | 308 | — | — | 308 | |||||||||||||||||||
Land | 9,009 | — | 1,996 | 11,005 | |||||||||||||||||||
Other loans | 2,174 | — | 17 | 2,191 | |||||||||||||||||||
Totals | $ | 835,247 | $ | 4,844 | $ | 24,747 | $ | 864,838 | |||||||||||||||
The following tables set forth delinquencies in the Company’s loan portfolio at the dates indicated: | |||||||||||||||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 173,478 | $ | 163 | $ | 79 | $ | — | $ | 173,720 | $ | 78 | |||||||||||
Commercial owner occupied | 222,162 | — | — | — | 222,162 | — | |||||||||||||||||
SBA | 6,312 | — | 129 | 14 | 6,455 | 142 | |||||||||||||||||
Warehouse facilities | 49,104 | — | — | — | 49,104 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 304,420 | 559 | — | — | 304,979 | 437 | |||||||||||||||||
Multi-family | 218,929 | — | — | — | 218,929 | — | |||||||||||||||||
One-to-four family | 152,570 | — | — | 97 | 152,667 | 496 | |||||||||||||||||
Construction | 2,835 | — | — | — | 2,835 | — | |||||||||||||||||
Land | 7,371 | — | — | — | 7,371 | — | |||||||||||||||||
Other loans | 3,785 | 2 | 6 | — | 3,793 | — | |||||||||||||||||
Totals | $ | 1,140,966 | $ | 724 | $ | 214 | $ | 111 | $ | 1,142,015 | $ | 1,153 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 115,078 | $ | — | $ | 58 | $ | 218 | $ | 115,354 | $ | 347 | |||||||||||
Commercial owner occupied | 150,689 | — | 245 | — | 150,934 | 14 | |||||||||||||||||
SBA | 6,697 | — | — | 185 | 6,882 | 260 | |||||||||||||||||
Warehouse facilities | 195,761 | — | — | — | 195,761 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 253,409 | — | — | — | 253,409 | 670 | |||||||||||||||||
Multi-family | 156,424 | — | — | — | 156,424 | 266 | |||||||||||||||||
One-to-four family | 97,283 | 101 | — | 79 | 97,463 | 522 | |||||||||||||||||
Land | 8,774 | — | — | — | 8,774 | 127 | |||||||||||||||||
Other loans | 1,188 | 5 | — | — | 1,193 | — | |||||||||||||||||
Totals | $ | 985,303 | $ | 106 | $ | 303 | $ | 482 | $ | 986,194 | $ | 2,206 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 87,984 | $ | — | $ | 121 | $ | — | $ | 88,105 | $ | — | |||||||||||
Commercial owner occupied | 147,812 | 327 | — | — | 148,139 | 218 | |||||||||||||||||
SBA | 4,551 | — | — | 185 | 4,736 | 266 | |||||||||||||||||
Warehouse facilities | 112,053 | — | — | — | 112,053 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 256,489 | 1,708 | — | 3,849 | 262,046 | 4,528 | |||||||||||||||||
Multi-family | 173,484 | — | — | — | 173,484 | 273 | |||||||||||||||||
One-to-four family | 62,307 | 301 | 43 | 120 | 62,771 | 578 | |||||||||||||||||
Construction | 308 | — | — | — | 308 | — | |||||||||||||||||
Land | 10,776 | 229 | — | — | 11,005 | 417 | |||||||||||||||||
Other loans | 2,191 | — | — | — | 2,191 | — | |||||||||||||||||
Totals | $ | 857,955 | $ | 2,565 | $ | 164 | $ | 4,154 | $ | 864,838 | $ | 6,280 |
Allowance_for_Loan_Losses
Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||
Note 7 — Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||
The Company’s ALLL covers estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated credit losses inherent in the remainder of the loan portfolio. The ALLL is prepared using the information provided by the Company’s credit and investment review process together with data from peer institutions and economic information gathered from published sources. | |||||||||||||||||||||||||||||||||||
The loan portfolio is segmented into groups of loans with similar risk characteristics. Each segment possesses varying degrees of risk based on, among other things, the type of loan, the type of collateral, and the sensitivity of the borrower or industry to changes in external factors such as economic conditions. An estimated loss rate calculated using the Company’s actual historical loss rates adjusted for current portfolio trends, economic conditions, and other relevant internal and external factors, is applied to each group’s aggregate loan balances. | |||||||||||||||||||||||||||||||||||
The following provides a summary of the ALLL calculation for the major segments within the Company’s loan portfolio. | |||||||||||||||||||||||||||||||||||
Owner Occupied Commercial Real Estate Loans, Commercial and Industrial Loans and SBA Loans | |||||||||||||||||||||||||||||||||||
The Company’s base ALLL factor for owner occupied commercial real estate loans, commercial business loans and SBA loans is determined by management using the Bank’s actual trailing 36 month, 24 month, trailing 12 month and annualized trailing six month charge-off data. Adjustments to those base factors are made for relevant internal and external factors. For owner occupied commercial real estate loans, commercial business loans and SBA loans, those factors include: | |||||||||||||||||||||||||||||||||||
· Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment, | |||||||||||||||||||||||||||||||||||
· Changes in the nature and volume of the loan portfolio, including new types of lending, | |||||||||||||||||||||||||||||||||||
· Changes in volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans, and | |||||||||||||||||||||||||||||||||||
· The existence and effect of concentrations of credit, and changes in the level of such concentrations. | |||||||||||||||||||||||||||||||||||
The resulting total ALLL factor is compared for reasonableness against the 10-year average, 15-year average, and trailing 12 month total charge-off data for all FDIC insured commercial banks and savings institutions based in California. This factor is applied to balances graded pass-1 through pass-5. For loans risk graded as watch or worse, progressively higher potential loss factors are applied based on management’s judgment, taking into consideration the specific characteristics of the Bank’s portfolio and analysis of results from a select group of the Company’s peers. | |||||||||||||||||||||||||||||||||||
Multi-Family and Non-Owner Occupied Commercial Real Estate Loans | |||||||||||||||||||||||||||||||||||
The Company’s base ALLL factor for multi-family and non-owner occupied commercial real estate loans is determined by management using the Bank’s actual trailing 36 month, 24 month, trailing 12 month and annualized trailing six month charge-off data. Adjustments to those base factors are made for relevant internal and external factors. For multi-family and non-owner occupied commercial real estate loans, those factors include: | |||||||||||||||||||||||||||||||||||
· Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment, | |||||||||||||||||||||||||||||||||||
· Changes in volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans, and | |||||||||||||||||||||||||||||||||||
· The existence and effect of concentrations of credit, and changes in the level of such concentrations. | |||||||||||||||||||||||||||||||||||
The resulting total ALLL factor is compared for reasonableness against the 10-year average, 15-year average, and trailing 12 month total charge-off data for all FDIC insured commercial banks and savings institutions based in California. This factor is applied to balances graded pass-1 through pass-5. For loans risk graded as watch or worse, progressively higher potential loss factors are applied based on management’s judgment, taking into consideration the specific characteristics of the Bank’s portfolio and analysis of results from a select group of the Company’s peers. | |||||||||||||||||||||||||||||||||||
One-to-Four Family and Consumer Loans | |||||||||||||||||||||||||||||||||||
The Company’s base ALLL factor for one-to-four family and consumer loans is determined by management using the Bank’s actual trailing 36 month, trailing 24 month, trailing 12 month and annualized trailing six month charge-off data. Adjustments to those base factors are made for relevant internal and external factors. For one-to-four family and consumer loans, those factors include: | |||||||||||||||||||||||||||||||||||
· Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment, and | |||||||||||||||||||||||||||||||||||
· Changes in volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. | |||||||||||||||||||||||||||||||||||
The resulting total ALLL factor is compared for reasonableness against the 10-year average, 15-year average, and trailing 12 month total charge-off data for all FDIC insured commercial banks and savings institutions based in California. This factor is applied to balances graded pass-1 through pass-5. For loans risk graded as watch or worse, progressively higher potential loss factors are applied based on management’s judgment, taking into consideration the specific characteristics of the Bank’s portfolio and analysis of results from a select group of the Company’s peers. | |||||||||||||||||||||||||||||||||||
Warehouse Facilities | |||||||||||||||||||||||||||||||||||
The Company’s warehouse facilities are structured as repurchase facilities, whereby we purchase funded one-to-four family loans on an interim basis. Therefore, the base ALLL factor for warehouse facilities is equal to that for one-to-four family and consumer loans as discussed above. Adjustments to the base factor are made for relevant internal and external factors. Those factors include: | |||||||||||||||||||||||||||||||||||
· Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment, | |||||||||||||||||||||||||||||||||||
· Changes in the nature and volume of the loan portfolio, including new types of lending, and | |||||||||||||||||||||||||||||||||||
· The existence and effect of concentrations of credit, and changes in the level of such concentrations. | |||||||||||||||||||||||||||||||||||
The resulting total ALLL factor is compared for reasonableness against the 10-year average, 15-year average, and trailing 12 month total charge-off data for one-to-four family loans for all FDIC insured commercial banks and savings institutions based in California. This factor is applied to balances graded pass-1 through pass-5. For loans risk graded as watch or worse, progressively higher potential loss factors are applied based on management’s judgment, taking into consideration the specific characteristics of the Bank’s portfolio and analysis of results from a select group of the Company’s peers. | |||||||||||||||||||||||||||||||||||
The following tables summarize the allocation of the ALLL as well as the activity in the ALLL attributed to various segments in the loan portfolio as of and For the nine months ended for the periods indicated: | |||||||||||||||||||||||||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to- | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | non-owner | family | four family | loans | ||||||||||||||||||||||||||||||
occupied | occupied | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,310 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 862 | $ | — | $ | 31 | $ | 52 | $ | 7,994 | |||||||||||||
Charge-offs | (291 | ) | (163 | ) | (16 | ) | — | (757 | ) | (101 | ) | (273 | ) | — | — | (7 | ) | (1,608 | ) | ||||||||||||||||
Recoveries | 107 | — | 51 | — | — | — | 45 | — | — | 141 | 344 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 1,675 | 170 | (64 | ) | (1,319 | ) | 701 | (538 | ) | 540 | 121 | 116 | (138 | ) | 1,264 | ||||||||||||||||||||
Balance, September 30, 2013 | $ | 2,801 | $ | 1,519 | $ | 50 | $ | 225 | $ | 1,403 | $ | 506 | $ | 1,174 | $ | 121 | $ | 147 | $ | 48 | $ | 7,994 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 104 | $ | — | $ | — | $ | — | $ | 104 | |||||||||||||
General portfolio allocation | 2,801 | 1,519 | 50 | 225 | 1,403 | 506 | 1,070 | 121 | 147 | 48 | 7,890 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | 68 | — | 14 | — | 437 | — | 642 | — | — | — | 1,161 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 16.2 | % | 0 | % | 0 | % | 0 | % | 8.96 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 173,652 | $ | 222,162 | $ | 6,441 | $ | 49,104 | $ | 304,542 | $ | 218,929 | $ | 152,025 | $ | 2,835 | $ | 7,371 | $ | 3,793 | $ | 1,140,854 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.61 | % | 0.68 | % | 0.78 | % | 0.46 | % | 0.46 | % | 0.23 | % | 0.7 | % | 4.27 | % | 1.99 | % | 1.27 | % | 0.69 | % | |||||||||||||
Total gross loans | $ | 173,720 | $ | 222,162 | $ | 6,455 | $ | 49,104 | $ | 304,979 | $ | 218,929 | $ | 152,667 | $ | 2,835 | $ | 7,371 | $ | 3,793 | $ | 1,142,015 | |||||||||||||
Total allowance to gross loans | 1.61 | % | 0.68 | % | 0.77 | % | 0.46 | % | 0.46 | % | 0.23 | % | 0.77 | % | 4.27 | % | 1.99 | % | 1.27 | % | 0.7 | % | |||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to- | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | non-owner | family | four family | loans | ||||||||||||||||||||||||||||||
occupied | occupied | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,361 | $ | 1,119 | $ | 80 | $ | 1,347 | $ | 1,287 | $ | 2,281 | $ | 931 | $ | — | $ | 39 | $ | 77 | $ | 8,522 | |||||||||||||
Charge-offs | (270 | ) | (405 | ) | (132 | ) | — | (88 | ) | — | (305 | ) | — | (5 | ) | (2 | ) | (1,207 | ) | ||||||||||||||||
Recoveries | 2 | — | 162 | — | 2 | — | 7 | — | — | 25 | 198 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | (269 | ) | 437 | (44 | ) | (301 | ) | 835 | (184 | ) | (215 | ) | — | (34 | ) | (80 | ) | 145 | |||||||||||||||||
Balance, September 30, 2012 | $ | 824 | $ | 1,151 | $ | 66 | $ | 1,046 | $ | 2,036 | $ | 2,097 | $ | 418 | $ | — | $ | — | $ | 20 | $ | 7,658 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | 36 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 153 | $ | — | $ | — | $ | — | $ | 189 | |||||||||||||
General portfolio allocation | 788 | 1,151 | 66 | 1,046 | 2,036 | 2,097 | 265 | — | — | 20 | 7,469 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | 60 | — | 309 | — | 460 | 1,394 | 643 | — | — | — | 2,866 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 60 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 23.79 | % | 0 | % | 0 | % | 0 | % | 6.59 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 88,045 | $ | 148,139 | $ | 4,427 | $ | 112,053 | $ | 261,586 | $ | 172,090 | $ | 62,128 | $ | 308 | $ | 11,005 | $ | 2,191 | $ | 861,972 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 0.89 | % | 0.78 | % | 1.49 | % | 0.93 | % | 0.78 | % | 1.22 | % | 0.43 | % | 0 | % | 0 | % | 0.91 | % | 0.87 | % | |||||||||||||
Total gross loans | $ | 88,105 | $ | 148,139 | $ | 4,736 | $ | 112,053 | $ | 262,046 | $ | 173,484 | $ | 62,771 | $ | 308 | $ | 11,005 | $ | 2,191 | $ | 864,838 | |||||||||||||
Total allowance to gross loans | 0.94 | % | 0.78 | % | 1.39 | % | 0.93 | % | 0.78 | % | 1.21 | % | 0.67 | % | 0 | % | 0 | % | 0.91 | % | 0.89 | % |
Subordinated_Debentures
Subordinated Debentures | 9 Months Ended |
Sep. 30, 2013 | |
Subordinated Debentures | ' |
Subordinated Debentures | ' |
Note 8 — Subordinated Debentures | |
In March 2004, the Corporation issued $10.3 million of Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Subordinated Debentures”) to PPBI Trust I, which funded the payment of $10.0 million of Floating Rate Trust Preferred Securities (“Trust Preferred Securities”) issued by PPBI Trust I in March 2004. The net proceeds from the offering of Trust Preferred Securities were contributed as capital to the Bank to support further growth. Interest is payable quarterly on the Subordinated Debentures at three-month LIBOR plus 2.75% per annum, for an effective rate of 3.02% per annum as of September 30, 2013. | |
The Corporation is not allowed to consolidate PPBI Trust I into the Company’s consolidated financial statements. The resulting effect on the Company’s consolidated financial statements is to report only the Subordinated Debentures as a component of the Company’s liabilities. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
Note 9 — Earnings Per Share | ||||||||||||||||||
Basic earnings per share excludes dilution and is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common shares in treasury. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that would then share in earnings and excludes common shares in treasury. Stock options exercisable for shares of common stock are excluded from the computation of diluted earnings per share if they are anti-dilutive due to their exercise price exceeding the average market price during the period. | ||||||||||||||||||
The impact of stock options which are anti-dilutive are excluded from the computations of diluted earnings per share. The dilutive impact of these securities could be included in future computations of diluted earnings per share if the market price of the common stock increases. The following table sets forth the number of stock options excluded for the periods indicated: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Stock options excluded | 13,744 | 233,630 | 53,310 | 358,151 | ||||||||||||||
The following tables set forth the Company’s unaudited earnings per share calculations for the periods indicated: | ||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 3,066 | $ | 3,462 | ||||||||||||||
Basic income available to common stockholders | 3,066 | 16,640,471 | $ | 0.19 | 3,462 | 10,330,814 | $ | 0.34 | ||||||||||
Effect of warrants and dilutive stock options | — | 841,759 | — | 502,120 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 3,066 | 17,482,230 | $ | 0.18 | $ | 3,462 | 10,832,934 | $ | 0.32 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 4,789 | $ | 11,965 | ||||||||||||||
Basic income available to common stockholders | 4,789 | 15,512,508 | $ | 0.31 | 11,965 | 10,332,223 | $ | 1.16 | ||||||||||
Effect of warrants and dilutive stock options | — | 802,193 | — | 377,599 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 4,789 | 16,314,701 | $ | 0.29 | $ | 11,965 | 10,709,822 | $ | 1.12 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Note 10 — Fair Value of Financial Instruments | |||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Financial instruments are considered Level 1 when the valuation is based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instruments are valued using quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques, and at least one significant model assumption or input is unobservable and when determination of the fair value requires significant management judgment or estimation. | |||||||||||||||||
Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at September 30, 2013, December 31, 2012 and September 30, 2012: | |||||||||||||||||
Cash and due from banks — The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. | |||||||||||||||||
Securities Available for Sale — Where possible, the Company utilizes quoted market prices to measure debt and equity securities; such items are classified as Level 1 in the hierarchy and include equity securities, US government bonds and securities issued by federally sponsored agencies. When quoted market prices for identical assets are unavailable or the market for the asset is not sufficiently active, varying valuation techniques are used. Common inputs in valuing these assets include, among others, benchmark yields, issuer spreads, forward mortgage-backed securities trade prices and recently reported trades. Such assets are classified as Level 2 in the hierarchy and typically include private label mortgage-backed securities and corporate bonds. Pricing on these securities are provided to the Company by a pricing service vendor. In the Level 3 category, the Company is classifying the securities that reflected an other-than-temporary impairments (“OTTI”) charge based on the discounted cash flow of the security or a determination of fair value that requires significant management judgment or consideration. | |||||||||||||||||
FHLB, Federal Reserve Bank Stock and The Independent BankersBank (“TIB”) Stock — The carrying value approximates the fair value based upon the redemption provisions of the stock and are classified as Level 1. | |||||||||||||||||
Loans Held for Sale - The fair value of loans held for sale is determined, when possible, using quoted secondary-market prices. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan. Loans held for sale are classified as Level 2. | |||||||||||||||||
Loans Held for Investment— For variable-rate loans that re-price frequently and have no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. The carrying amount of accrued interest receivable approximates its fair value as a Level 1 classification. | |||||||||||||||||
OREO— OREO assets are recorded at the fair value less estimated costs to sell at the time of foreclosure. The fair value of OREO assets is generally based on recent real estate appraisals adjusted for estimated selling costs. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||
Accrued Interest Receivable/Payable — The carrying amount approximates fair value and are classified as Level 1. | |||||||||||||||||
Deposit Accounts— The fair values estimated for demand deposits (interest and noninterest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts) resulting in a Level 1 classification. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of the aggregate expected monthly maturities on time deposits in a Level 2 classification. The carrying amount of accrued interest payable approximates its fair value as a Level 1 classification. | |||||||||||||||||
FHLB Advances and Other Borrowings— For these instruments, the fair value of short term borrowings is estimated to be the carrying amount and is classified as Level 1. The fair value of long term borrowings and debentures is determined using rates currently available for similar borrowings or debentures with similar credit risk and for the remaining maturities and are classified as Level 2. The carrying amount of accrued interest payable approximates its fair value as a Level 1 classification. | |||||||||||||||||
Subordinated Debentures — The fair value of subordinated debentures is estimated by discounting the balance by the current three-month LIBOR rate plus the current market spread. The fair value is determined based on the maturity date as the Company does not currently have intentions to call the debenture and is classified as Level 2. | |||||||||||||||||
Off-Balance Sheet Commitments and Standby Letters of Credit — The majority of the Bank’s commitments to extend credit carry current market interest rates if converted to loans. Because these commitments are generally unassignable by either the Bank or the borrower, they only have value to the Bank and the borrower. The notional amount disclosed for off-balance sheet commitments and standby letters of credit is the amount available to be drawn down on all lines and letters of credit. The cost to assume is calculated at 10% of the notional amount and is classified as Level 2. | |||||||||||||||||
Estimated fair values are disclosed for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. | |||||||||||||||||
The fair value estimates presented herein are based on pertinent information available to management as of the periods indicated. | |||||||||||||||||
At September 30, 2013 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 61,419 | $ | 61,419 | $ | — | $ | — | $ | 61,419 | |||||||
Securities available for sale | 282,846 | 187,961 | 94,885 | — | 282,846 | ||||||||||||
Federal Reserve Bank, TIB and FHLB stock, at cost | 10,827 | 10,827 | — | — | 10,827 | ||||||||||||
Loans held for sale, net | 3,176 | — | 3,176 | — | 3,176 | ||||||||||||
Loans held for investment, net | 1,130,975 | — | — | 1,225,352 | 1,225,352 | ||||||||||||
Accrued interest receivable | 5,629 | 5,629 | — | — | 5,629 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,284,134 | 998,217 | 284,403 | — | 1,282,620 | ||||||||||||
FHLB advances | 35,000 | 35,000 | — | — | 35,000 | ||||||||||||
Other borrowings | 51,474 | — | 53,435 | — | 53,435 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,766 | — | 4,766 | ||||||||||||
Accrued interest payable | 195 | 195 | — | — | 195 | ||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 333,592 | $ | — | $ | 33,359 | $ | — | $ | 33,359 | |||||||
At December 31, 2012 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 59,352 | $ | 59,352 | $ | — | $ | — | $ | 59,352 | |||||||
Securities available for sale | 84,066 | 81,042 | 2,072 | 952 | 84,066 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 11,247 | 11,247 | — | — | 11,247 | ||||||||||||
Loans held for sale, net | 3,681 | — | 3,681 | — | 3,681 | ||||||||||||
Loans held for investment, net | 974,213 | — | — | 1,049,589 | 1,049,589 | ||||||||||||
Accrued interest receivable | 4,126 | 4,126 | — | — | 4,126 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 904,768 | 548,101 | 363,382 | — | 911,483 | ||||||||||||
FHLB advances | 87,000 | 87,000 | — | — | 87,000 | ||||||||||||
Other borrowings | 28,500 | — | 31,267 | — | 31,267 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,973 | — | 4,973 | ||||||||||||
Accrued interest payable | 142 | 142 | — | — | 142 | ||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 131,450 | $ | — | $ | 13,145 | $ | — | $ | 13,145 | |||||||
At September 30, 2012 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 58,243 | $ | 58,243 | $ | — | $ | — | $ | 58,243 | |||||||
Securities available for sale | 114,250 | 54,099 | 59,190 | 961 | 114,250 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 12,191 | 12,191 | — | — | 12,191 | ||||||||||||
Loans held for sale, net | 4,728 | — | 4,728 | — | 4,728 | ||||||||||||
Loans held for investment, net | 851,715 | — | — | 931,640 | 931,640 | ||||||||||||
Accrued interest receivable | 3,933 | 3,933 | — | — | 3,933 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 895,870 | 476,852 | 422,036 | — | 898,888 | ||||||||||||
FHLB advances | 47,000 | 47,000 | — | — | 47,000 | ||||||||||||
Other borrowings | 28,500 | — | 32,360 | — | 32,360 | ||||||||||||
Subordinated debentures | 10,310 | — | 8,222 | — | 8,222 | ||||||||||||
Accrued interest payable | 213 | 213 | — | — | 213 | ||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 152,057 | $ | — | $ | 15,206 | $ | — | $ | 15,206 | |||||||
A loan is considered impaired when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. Impairment is measured based on the fair value of the underlying collateral or the discounted expected future cash flows. The Company measures impairment on all non-accrual loans for which it has reduced the principal balance to the value of the underlying collateral less the anticipated selling cost. As such, the Company records impaired loans as non-recurring Level 2 when the fair value of the underlying collateral is based on an observable market price or current appraised value. When current market prices are not available or the Company determines that the fair value of the underlying collateral is further impaired below appraised values, the Company records impaired loans as Level 3. At September 30, 2013, substantially all the Company’s impaired loans were evaluated based on the fair value of their underlying collateral based upon the most recent appraisal available to management. | |||||||||||||||||
The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. | |||||||||||||||||
The following fair value hierarchy table presents information about the Company’s assets measured at fair value on a recurring basis at the dates indicated: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Securities at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
U.S. Treasury | $ | 82 | $ | — | $ | — | $ | 82 | |||||||||
Municipal bonds | — | 94,885 | — | 94,885 | |||||||||||||
Mortgage-backed securities | 187,879 | — | — | 187,879 | |||||||||||||
Total securities available for sale | $ | 187,961 | $ | 94,885 | $ | — | $ | 282,846 | |||||||||
Stock: | |||||||||||||||||
FHLB stock | $ | 7,532 | $ | — | $ | — | $ | 7,532 | |||||||||
Federal Reserve Bank stock | 3,295 | — | — | 3,295 | |||||||||||||
Total stock | 10,827 | — | — | 10,827 | |||||||||||||
Total securities | $ | 198,788 | $ | 94,885 | $ | — | $ | 293,673 | |||||||||
September 30, 2012 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Securities at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
U.S. Treasury | $ | 160 | $ | — | $ | — | $ | 160 | |||||||||
Municipal bonds | — | 57,097 | — | 57,097 | |||||||||||||
Mortgage-backed securities | 53,939 | 2,093 | 961 | 56,993 | |||||||||||||
Total securities available for sale | $ | 54,099 | $ | 59,190 | $ | 961 | $ | 114,250 | |||||||||
Stock: | |||||||||||||||||
FHLB stock | $ | 10,172 | $ | — | $ | — | $ | 10,172 | |||||||||
Federal Reserve Bank stock | 2,019 | — | — | 2,019 | |||||||||||||
Total stock | 12,191 | — | — | 12,191 | |||||||||||||
Total securities | $ | 66,290 | $ | 59,190 | $ | 961 | $ | 126,441 | |||||||||
The following table provides a summary of the changes in balance sheet carrying values associated with Level 3 financial instruments during the nine months ended for the periods indicated: | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 952 | $ | 991 | |||||||||||||
Total gains or (losses) realized/unrealized: | |||||||||||||||||
Included in earnings (or changes in net assets) | 194 | (118 | ) | ||||||||||||||
Included in other comprehensive income | (140 | ) | 290 | ||||||||||||||
Purchases, issuances, and settlements | (1,077 | ) | (202 | ) | |||||||||||||
Transfer in and/or out of Level 3 | 71 | — | |||||||||||||||
Balance, end of period | $ | — | $ | 961 | |||||||||||||
The following table provides a summary of the financial instruments the Company measures at fair value on a non-recurring basis as of the periods indicated: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 1,161 | $ | 1,161 | |||||||||
Other real estate owned | — | — | 1,186 | 1,186 | |||||||||||||
Total assets | $ | — | $ | — | $ | 2,347 | $ | 2,347 | |||||||||
September 30, 2012 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 2,866 | $ | 2,866 | |||||||||
Other real estate owned | — | — | 5,521 | 5,521 | |||||||||||||
Total assets | $ | — | $ | — | $ | 8,387 | $ | 8,387 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies | ' |
Certain Acquired Loans | ' |
Certain Acquired Loans: As part of business acquisitions, the Bank acquires certain loans that have shown evidence of credit deterioration since origination. These acquired loans are recorded at the allocated fair value, such that there is no carryover of the seller’s allowance for loan losses. Such acquired loans are accounted for individually. The Bank estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. | |
Goodwill and Core Deposit Intangible | ' |
Goodwill and Core Deposit Intangible: Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate the necessity for such impairment tests to be performed. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. | |
Core deposit intangible assets arising from whole bank acquisitions are amortized on an accelerated method over their estimated useful lives, which range from 8 to 10 years. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Acquisitions | ' | ||||||||||
Schedule of contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | ' | ||||||||||
Acquired Loans | |||||||||||
(dollars in thousands) | |||||||||||
Contractual amounts due | $ | 79,358 | |||||||||
Cash flows not expected to be collected | — | ||||||||||
Expected cash flows | 79,358 | ||||||||||
Interest component of expected cash flows | 10,543 | ||||||||||
Fair value of acquired loans | $ | 68,815 | |||||||||
Summary of pro forma net interest and other income, net income and earnings per share | ' | ||||||||||
Nine months Ended September 30, | |||||||||||
2013 | 2012 | ||||||||||
Net interest and other income | $ | 52,738 | $ | 55,791 | |||||||
Net income | 5,648 | 14,902 | |||||||||
Basic earnings per share | $ | 0.36 | $ | 1.16 | |||||||
Diluted earnings per share | $ | 0.35 | $ | 1.13 | |||||||
San Diego Trust Bank | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
The following table represents the assets acquired and liabilities assumed of SDTB as of June 25, 2013 and the provisional fair value adjustments and amounts recorded by the Company in 2013 under the acquisition method of accounting: | |||||||||||
SDTB | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 30,252 | $ | — | $ | 30,252 | |||||
Investment securities | 124,960 | (155 | ) | 124,805 | |||||||
Loans, gross | 42,945 | (552 | ) | 42,393 | |||||||
Allowance for loan losses | (1,013 | ) | 1,013 | — | |||||||
Other real estate owned | 752 | — | 752 | ||||||||
Core deposit intangible | — | 2,836 | 2,836 | ||||||||
Other assets | 9,856 | — | 9,856 | ||||||||
Total assets acquired | $ | 207,752 | $ | 3,142 | $ | 210,894 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 183,901 | $ | 6 | $ | 183,907 | |||||
Deferred tax liability (asset) | (333 | ) | 1,255 | 922 | |||||||
Other liabilities | 1,823 | — | 1,823 | ||||||||
Total liabilities assumed | 185,391 | 1,261 | 186,652 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 22,361 | $ | 1,881 | 24,242 | ||||||
Consideration paid | 30,622 | ||||||||||
Goodwill recognized | $ | 6,380 | |||||||||
First Association Bank | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
The following table represents the assets acquired and liabilities assumed of FAB as of March 15, 2013, the provisional fair value adjustments and amounts recorded by the Company in 2013 under the acquisition method of accounting: | |||||||||||
FAB | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 167,663 | $ | — | $ | 167,663 | |||||
Investment securities | 219,913 | 2,478 | 222,391 | ||||||||
Loans, gross | 26,264 | 158 | 26,422 | ||||||||
Allowance for loan losses | (224 | ) | 224 | — | |||||||
Core deposit intangible | — | 1,930 | 1,930 | ||||||||
Other assets | 5,823 | — | 5,823 | ||||||||
Total assets acquired | $ | 419,439 | $ | 4,790 | $ | 424,229 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 356,737 | $ | 81 | $ | 356,818 | |||||
Borrowings | 16,905 | — | 16,905 | ||||||||
Deferred tax liability | — | 3,918 | 3,918 | ||||||||
Other Liabilities | 536 | — | 536 | ||||||||
Total liabilities assumed | 374,178 | 3,999 | 378,177 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 45,261 | $ | 791 | 46,052 | ||||||
Consideration paid | 57,906 | ||||||||||
Goodwill recognized | $ | 11,854 |
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
Schedule of amortized cost and estimated fair value of securities | ' | |||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Gain | Loss | Fair Value | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 73 | $ | 9 | $ | — | $ | 82 | ||||||||||||||||||||||||
Municipal bonds | 95,971 | 709 | (1,795 | ) | 94,885 | |||||||||||||||||||||||||||
Mortgage-backed securities | 191,282 | 182 | (3,585 | ) | 187,879 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 287,326 | $ | 900 | $ | (5,380 | ) | $ | 282,846 | |||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized | Unrealized | Estimated Fair | |||||||||||||||||||||||||||||
Gain | Loss | Value | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 147 | $ | 12 | $ | — | $ | 159 | ||||||||||||||||||||||||
Municipal bonds | 25,401 | 1,186 | (1 | ) | 26,586 | |||||||||||||||||||||||||||
Mortgage-backed securities | 56,641 | 1,162 | (482 | ) | 57,321 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 82,189 | $ | 2,360 | $ | (483 | ) | $ | 84,066 | |||||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized | Unrealized | Estimated Fair | |||||||||||||||||||||||||||||
Gain | Loss | Value | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 147 | $ | 13 | $ | — | $ | 160 | ||||||||||||||||||||||||
Municipal bonds | 55,445 | 1,667 | (15 | ) | 57,097 | |||||||||||||||||||||||||||
Mortgage-backed securities | 56,351 | 1,121 | (479 | ) | 56,993 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 111,943 | $ | 2,801 | $ | (494 | ) | $ | 114,250 | |||||||||||||||||||||||
Schedule of number, fair value and gross unrealized holding losses of the Company's investment securities by investment category and length of time that the securities have been in a continuous loss position | ' | |||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 131 | $ | 60,183 | $ | (1,795 | ) | — | $ | — | $ | — | 131 | $ | 60,183 | $ | (1,795 | ) | |||||||||||||||
Mortgage-backed securities | 39 | 136,513 | (2,725 | ) | 1 | 13,117 | (860 | ) | 40 | 149,630 | (3,585 | ) | ||||||||||||||||||||
Total | 170 | $ | 196,696 | $ | (4,520 | ) | 1 | $ | 13,117 | $ | (860 | ) | 171 | $ | 209,813 | $ | (5,380 | ) | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 1 | $ | 292 | $ | (1 | ) | — | $ | — | $ | — | 1 | $ | 292 | $ | (1 | ) | |||||||||||||||
Mortgage-backed securities | 2 | 15,128 | (152 | ) | 31 | 1,012 | (330 | ) | 33 | 16,140 | (482 | ) | ||||||||||||||||||||
Total | 3 | $ | 15,420 | $ | (153 | ) | 31 | $ | 1,012 | $ | (330 | ) | 34 | $ | 16,432 | $ | (483 | ) | ||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 9 | $ | 2,775 | $ | (15 | ) | — | $ | — | $ | — | 9 | $ | 2,775 | $ | (15 | ) | |||||||||||||||
Mortgage-backed securities | 4 | 9,025 | (33 | ) | 34 | 1,004 | (446 | ) | 38 | 10,029 | (479 | ) | ||||||||||||||||||||
Total | 13 | $ | 11,800 | $ | (48 | ) | 34 | $ | 1,004 | $ | (446 | ) | 47 | $ | 12,804 | $ | (494 | ) | ||||||||||||||
Schedule of amortized cost and estimated fair value of investment securities available for sale by contractual maturity | ' | |||||||||||||||||||||||||||||||
One Year | More than One | More than Five Years | More than | |||||||||||||||||||||||||||||
or Less | Year to Five Years | to Ten Years | Ten Years | Total | ||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | 73 | $ | 82 | $ | — | $ | — | $ | — | $ | — | $ | 73 | $ | 82 | ||||||||||||
Municipal bonds | — | — | 9,995 | 9,905 | 42,734 | 42,392 | 43,242 | 42,588 | 95,971 | 94,885 | ||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | 14,153 | 14,038 | 177,129 | 173,841 | 191,282 | 187,879 | ||||||||||||||||||||||
Total investment securities available for sale | — | — | 10,068 | 9,987 | 56,887 | 56,430 | 220,371 | 216,429 | 287,326 | 282,846 | ||||||||||||||||||||||
Loans_Held_for_Investment_Tabl
Loans Held for Investment (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Loans Held for Investment | ' | ||||||||||||||||||||||
Summary of composition of loan portfolio | ' | ||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2012 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 173,720 | $ | 115,354 | $ | 88,105 | |||||||||||||||||
Commercial owner occupied (1) | 222,162 | 150,934 | 148,139 | ||||||||||||||||||||
SBA | 6,455 | 6,882 | 4,736 | ||||||||||||||||||||
Warehouse facilities | 49,104 | 195,761 | 112,053 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 304,979 | 253,409 | 262,046 | ||||||||||||||||||||
Multi-family | 218,929 | 156,424 | 173,484 | ||||||||||||||||||||
One-to-four family (2) | 152,667 | 97,463 | 62,771 | ||||||||||||||||||||
Construction | 2,835 | — | 308 | ||||||||||||||||||||
Land | 7,371 | 8,774 | 11,005 | ||||||||||||||||||||
Other loans | 3,793 | 1,193 | 2,191 | ||||||||||||||||||||
Total gross loans (3) | 1,142,015 | 986,194 | 864,838 | ||||||||||||||||||||
Less loans held for sale, net | 3,176 | 3,681 | 4,728 | ||||||||||||||||||||
Total gross loans held for investment | 1,138,839 | 982,513 | 860,110 | ||||||||||||||||||||
Less: | |||||||||||||||||||||||
Deferred loan origination costs (fees) and premiums (discounts), net | 130 | (306 | ) | (737 | ) | ||||||||||||||||||
Allowance for loan losses | (7,994 | ) | (7,994 | ) | (7,658 | ) | |||||||||||||||||
Loans held for investment, net | $ | 1,130,975 | $ | 974,213 | $ | 851,715 | |||||||||||||||||
(1) Majority secured by real estate. | |||||||||||||||||||||||
(2) Includes second trust deeds. | |||||||||||||||||||||||
(3) Total gross loans for September 30, 2013 are net of the unaccreted mark-to-market discounts on Canyon National loans of $2.3 million, on Palm Desert National loans of $3.7 million, and on SDTB loans of $230,000 and of the mark-to-market premium on FAB loans of $103,000. | |||||||||||||||||||||||
Summary of Company's investment in purchased credit impaired loans, acquired from Canyon National and Palm Desert National | ' | ||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Canyon | Palm Desert | Total | |||||||||||||||||||||
National | National | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 79 | $ | 174 | $ | 253 | |||||||||||||||||
Commercial owner occupied | 942 | — | 942 | ||||||||||||||||||||
SBA | — | — | — | ||||||||||||||||||||
Warehouse facilities | — | — | — | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,009 | — | 1,009 | ||||||||||||||||||||
Multi-family | — | — | — | ||||||||||||||||||||
One-to-four family | — | 21 | 21 | ||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||
Land | — | — | — | ||||||||||||||||||||
Other loans | — | — | — | ||||||||||||||||||||
Total purchase credit impaired | $ | 2,030 | $ | 195 | $ | 2,225 | |||||||||||||||||
Summary of accretable yield on purchased credit impaired | ' | ||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Canyon National | Palm Desert National | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at the beginning of period | $ | 2,029 | $ | 247 | $ | 2,276 | |||||||||||||||||
Accretable yield at acquisition | — | — | — | ||||||||||||||||||||
Accretion | (348 | ) | (49 | ) | (397 | ) | |||||||||||||||||
Disposals and other | (31 | ) | (514 | ) | (545 | ) | |||||||||||||||||
Change in accretable yield | 157 | 448 | 605 | ||||||||||||||||||||
Balance at the end of period | $ | 1,807 | $ | 132 | $ | 1,939 | |||||||||||||||||
Summary of Company's investment in impaired loans | ' | ||||||||||||||||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | |||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 186 | $ | 68 | $ | — | $ | 68 | $ | — | $ | 326 | $ | 71 | |||||||||
Commercial owner occupied | — | — | — | — | — | 153 | 18 | ||||||||||||||||
SBA | 246 | 14 | — | 14 | — | 60 | 16 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 527 | 437 | — | 437 | — | 983 | 157 | ||||||||||||||||
Multi-family | — | — | — | — | — | 144 | 2 | ||||||||||||||||
One-to-four family | 701 | 642 | 282 | 360 | 104 | 772 | 154 | ||||||||||||||||
Totals | $ | 1,660 | $ | 1,161 | $ | 282 | $ | 879 | $ | 104 | $ | 2,438 | $ | 418 | |||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | |||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 707 | $ | 593 | $ | 287 | $ | 306 | $ | 270 | $ | 203 | $ | 29 | |||||||||
Commercial owner occupied | — | — | — | — | — | 444 | — | ||||||||||||||||
SBA | 810 | 259 | — | 259 | — | 468 | 21 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 746 | 670 | — | 670 | — | 1,031 | 59 | ||||||||||||||||
Multi-family | 315 | 266 | — | 266 | — | 1,123 | 22 | ||||||||||||||||
One-to-four family | 960 | 948 | 541 | 407 | 395 | 720 | 59 | ||||||||||||||||
Totals | $ | 3,538 | $ | 2,736 | $ | 828 | $ | 1,908 | $ | 665 | $ | 3,989 | $ | 190 | |||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | |||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 59 | $ | 60 | $ | 60 | $ | — | $ | 36 | $ | 140 | $ | 3 | |||||||||
Commercial owner occupied | — | — | — | — | — | 592 | — | ||||||||||||||||
SBA | 1,368 | 309 | — | 309 | — | 518 | 37 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 507 | 460 | — | 460 | — | 1,257 | 15 | ||||||||||||||||
Multi-family | 1,437 | 1,394 | — | 1,394 | — | 1,408 | 67 | ||||||||||||||||
One-to-four family | 657 | 643 | 299 | 344 | 153 | 656 | 31 | ||||||||||||||||
Totals | $ | 4,028 | $ | 2,866 | $ | 359 | $ | 2,507 | $ | 189 | $ | 4,571 | $ | 153 | |||||||||
Summary of additional detail on components of impaired loans | ' | ||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2012 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Nonaccruing loans | $ | 972 | $ | 1,988 | $ | 1,439 | |||||||||||||||||
Accruing loans | 189 | 748 | 1,427 | ||||||||||||||||||||
Total impaired loans | $ | 1,161 | $ | 2,736 | $ | 2,866 | |||||||||||||||||
Summary of loan portfolio by the Company's internal risk grading system | ' | ||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 170,840 | $ | 68 | $ | 2,812 | $ | 173,720 | |||||||||||||||
Commercial owner occupied | 207,519 | 2,632 | 12,011 | 222,162 | |||||||||||||||||||
SBA | 6,455 | — | — | 6,455 | |||||||||||||||||||
Warehouse facilities | 49,104 | — | — | 49,104 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 299,940 | 355 | 4,684 | 304,979 | |||||||||||||||||||
Multi-family | 217,897 | 513 | 519 | 218,929 | |||||||||||||||||||
One-to-four family | 151,564 | — | 1,103 | 152,667 | |||||||||||||||||||
Construction | 2,835 | — | — | 2,835 | |||||||||||||||||||
Land | 7,371 | — | — | 7,371 | |||||||||||||||||||
Other loans | 3,787 | — | 6 | 3,793 | |||||||||||||||||||
Totals | $ | 1,117,312 | $ | 3,568 | $ | 21,135 | $ | 1,142,015 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 111,895 | $ | 92 | $ | 3,367 | $ | 115,354 | |||||||||||||||
Commercial owner occupied | 136,330 | 2,674 | 11,930 | 150,934 | |||||||||||||||||||
SBA | 6,819 | — | 63 | 6,882 | |||||||||||||||||||
Warehouse facilities | 195,761 | — | — | 195,761 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 240,585 | 687 | 12,137 | 253,409 | |||||||||||||||||||
Multi-family | 143,003 | 11,583 | 1,838 | 156,424 | |||||||||||||||||||
One-to-four family | 96,061 | — | 1,402 | 97,463 | |||||||||||||||||||
Land | 8,762 | — | 12 | 8,774 | |||||||||||||||||||
Other loans | 1,177 | — | 16 | 1,193 | |||||||||||||||||||
Totals | $ | 940,393 | $ | 15,036 | $ | 30,765 | $ | 986,194 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 86,000 | $ | 847 | $ | 1,258 | $ | 88,105 | |||||||||||||||
Commercial owner occupied | 137,289 | 3,334 | 7,516 | 148,139 | |||||||||||||||||||
SBA | 4,455 | — | 281 | 4,736 | |||||||||||||||||||
Warehouse facilities | 112,053 | — | — | 112,053 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 252,216 | 663 | 9,167 | 262,046 | |||||||||||||||||||
Multi-family | 170,365 | — | 3,119 | 173,484 | |||||||||||||||||||
One-to-four family | 61,378 | — | 1,393 | 62,771 | |||||||||||||||||||
Construction | 308 | — | — | 308 | |||||||||||||||||||
Land | 9,009 | — | 1,996 | 11,005 | |||||||||||||||||||
Other loans | 2,174 | — | 17 | 2,191 | |||||||||||||||||||
Totals | $ | 835,247 | $ | 4,844 | $ | 24,747 | $ | 864,838 | |||||||||||||||
Schedule of delinquencies in the Company's loan portfolio | ' | ||||||||||||||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 173,478 | $ | 163 | $ | 79 | $ | — | $ | 173,720 | $ | 78 | |||||||||||
Commercial owner occupied | 222,162 | — | — | — | 222,162 | — | |||||||||||||||||
SBA | 6,312 | — | 129 | 14 | 6,455 | 142 | |||||||||||||||||
Warehouse facilities | 49,104 | — | — | — | 49,104 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 304,420 | 559 | — | — | 304,979 | 437 | |||||||||||||||||
Multi-family | 218,929 | — | — | — | 218,929 | — | |||||||||||||||||
One-to-four family | 152,570 | — | — | 97 | 152,667 | 496 | |||||||||||||||||
Construction | 2,835 | — | — | — | 2,835 | — | |||||||||||||||||
Land | 7,371 | — | — | — | 7,371 | — | |||||||||||||||||
Other loans | 3,785 | 2 | 6 | — | 3,793 | — | |||||||||||||||||
Totals | $ | 1,140,966 | $ | 724 | $ | 214 | $ | 111 | $ | 1,142,015 | $ | 1,153 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 115,078 | $ | — | $ | 58 | $ | 218 | $ | 115,354 | $ | 347 | |||||||||||
Commercial owner occupied | 150,689 | — | 245 | — | 150,934 | 14 | |||||||||||||||||
SBA | 6,697 | — | — | 185 | 6,882 | 260 | |||||||||||||||||
Warehouse facilities | 195,761 | — | — | — | 195,761 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 253,409 | — | — | — | 253,409 | 670 | |||||||||||||||||
Multi-family | 156,424 | — | — | — | 156,424 | 266 | |||||||||||||||||
One-to-four family | 97,283 | 101 | — | 79 | 97,463 | 522 | |||||||||||||||||
Land | 8,774 | — | — | — | 8,774 | 127 | |||||||||||||||||
Other loans | 1,188 | 5 | — | — | 1,193 | — | |||||||||||||||||
Totals | $ | 985,303 | $ | 106 | $ | 303 | $ | 482 | $ | 986,194 | $ | 2,206 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 87,984 | $ | — | $ | 121 | $ | — | $ | 88,105 | $ | — | |||||||||||
Commercial owner occupied | 147,812 | 327 | — | — | 148,139 | 218 | |||||||||||||||||
SBA | 4,551 | — | — | 185 | 4,736 | 266 | |||||||||||||||||
Warehouse facilities | 112,053 | — | — | — | 112,053 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 256,489 | 1,708 | — | 3,849 | 262,046 | 4,528 | |||||||||||||||||
Multi-family | 173,484 | — | — | — | 173,484 | 273 | |||||||||||||||||
One-to-four family | 62,307 | 301 | 43 | 120 | 62,771 | 578 | |||||||||||||||||
Construction | 308 | — | — | — | 308 | — | |||||||||||||||||
Land | 10,776 | 229 | — | — | 11,005 | 417 | |||||||||||||||||
Other loans | 2,191 | — | — | — | 2,191 | — | |||||||||||||||||
Totals | $ | 857,955 | $ | 2,565 | $ | 164 | $ | 4,154 | $ | 864,838 | $ | 6,280 |
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||
Summary of allocation of the allowance as well as the activity in the allowance attributed to various segments in the loan portfolio | ' | ||||||||||||||||||||||||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to- | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | non-owner | family | four family | loans | ||||||||||||||||||||||||||||||
occupied | occupied | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,310 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 862 | $ | — | $ | 31 | $ | 52 | $ | 7,994 | |||||||||||||
Charge-offs | (291 | ) | (163 | ) | (16 | ) | — | (757 | ) | (101 | ) | (273 | ) | — | — | (7 | ) | (1,608 | ) | ||||||||||||||||
Recoveries | 107 | — | 51 | — | — | — | 45 | — | — | 141 | 344 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 1,675 | 170 | (64 | ) | (1,319 | ) | 701 | (538 | ) | 540 | 121 | 116 | (138 | ) | 1,264 | ||||||||||||||||||||
Balance, September 30, 2013 | $ | 2,801 | $ | 1,519 | $ | 50 | $ | 225 | $ | 1,403 | $ | 506 | $ | 1,174 | $ | 121 | $ | 147 | $ | 48 | $ | 7,994 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 104 | $ | — | $ | — | $ | — | $ | 104 | |||||||||||||
General portfolio allocation | 2,801 | 1,519 | 50 | 225 | 1,403 | 506 | 1,070 | 121 | 147 | 48 | 7,890 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | 68 | — | 14 | — | 437 | — | 642 | — | — | — | 1,161 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 16.2 | % | 0 | % | 0 | % | 0 | % | 8.96 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 173,652 | $ | 222,162 | $ | 6,441 | $ | 49,104 | $ | 304,542 | $ | 218,929 | $ | 152,025 | $ | 2,835 | $ | 7,371 | $ | 3,793 | $ | 1,140,854 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.61 | % | 0.68 | % | 0.78 | % | 0.46 | % | 0.46 | % | 0.23 | % | 0.7 | % | 4.27 | % | 1.99 | % | 1.27 | % | 0.69 | % | |||||||||||||
Total gross loans | $ | 173,720 | $ | 222,162 | $ | 6,455 | $ | 49,104 | $ | 304,979 | $ | 218,929 | $ | 152,667 | $ | 2,835 | $ | 7,371 | $ | 3,793 | $ | 1,142,015 | |||||||||||||
Total allowance to gross loans | 1.61 | % | 0.68 | % | 0.77 | % | 0.46 | % | 0.46 | % | 0.23 | % | 0.77 | % | 4.27 | % | 1.99 | % | 1.27 | % | 0.7 | % | |||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to- | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | non-owner | family | four family | loans | ||||||||||||||||||||||||||||||
occupied | occupied | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,361 | $ | 1,119 | $ | 80 | $ | 1,347 | $ | 1,287 | $ | 2,281 | $ | 931 | $ | — | $ | 39 | $ | 77 | $ | 8,522 | |||||||||||||
Charge-offs | (270 | ) | (405 | ) | (132 | ) | — | (88 | ) | — | (305 | ) | — | (5 | ) | (2 | ) | (1,207 | ) | ||||||||||||||||
Recoveries | 2 | — | 162 | — | 2 | — | 7 | — | — | 25 | 198 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | (269 | ) | 437 | (44 | ) | (301 | ) | 835 | (184 | ) | (215 | ) | — | (34 | ) | (80 | ) | 145 | |||||||||||||||||
Balance, September 30, 2012 | $ | 824 | $ | 1,151 | $ | 66 | $ | 1,046 | $ | 2,036 | $ | 2,097 | $ | 418 | $ | — | $ | — | $ | 20 | $ | 7,658 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | 36 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 153 | $ | — | $ | — | $ | — | $ | 189 | |||||||||||||
General portfolio allocation | 788 | 1,151 | 66 | 1,046 | 2,036 | 2,097 | 265 | — | — | 20 | 7,469 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | 60 | — | 309 | — | 460 | 1,394 | 643 | — | — | — | 2,866 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 60 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 23.79 | % | 0 | % | 0 | % | 0 | % | 6.59 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 88,045 | $ | 148,139 | $ | 4,427 | $ | 112,053 | $ | 261,586 | $ | 172,090 | $ | 62,128 | $ | 308 | $ | 11,005 | $ | 2,191 | $ | 861,972 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 0.89 | % | 0.78 | % | 1.49 | % | 0.93 | % | 0.78 | % | 1.22 | % | 0.43 | % | 0 | % | 0 | % | 0.91 | % | 0.87 | % | |||||||||||||
Total gross loans | $ | 88,105 | $ | 148,139 | $ | 4,736 | $ | 112,053 | $ | 262,046 | $ | 173,484 | $ | 62,771 | $ | 308 | $ | 11,005 | $ | 2,191 | $ | 864,838 | |||||||||||||
Total allowance to gross loans | 0.94 | % | 0.78 | % | 1.39 | % | 0.93 | % | 0.78 | % | 1.21 | % | 0.67 | % | 0 | % | 0 | % | 0.91 | % | 0.89 | % |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
Schedule of number of stock options excluded from the computations of diluted earnings per share | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Stock options excluded | 13,744 | 233,630 | 53,310 | 358,151 | ||||||||||||||
Schedule of Company's unaudited earnings per share calculations | ' | |||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 3,066 | $ | 3,462 | ||||||||||||||
Basic income available to common stockholders | 3,066 | 16,640,471 | $ | 0.19 | 3,462 | 10,330,814 | $ | 0.34 | ||||||||||
Effect of warrants and dilutive stock options | — | 841,759 | — | 502,120 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 3,066 | 17,482,230 | $ | 0.18 | $ | 3,462 | 10,832,934 | $ | 0.32 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 4,789 | $ | 11,965 | ||||||||||||||
Basic income available to common stockholders | 4,789 | 15,512,508 | $ | 0.31 | 11,965 | 10,332,223 | $ | 1.16 | ||||||||||
Effect of warrants and dilutive stock options | — | 802,193 | — | 377,599 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 4,789 | 16,314,701 | $ | 0.29 | $ | 11,965 | 10,709,822 | $ | 1.12 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Schedule of carrying amount and estimated fair value of financial instruments | ' | ||||||||||||||||
At September 30, 2013 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 61,419 | $ | 61,419 | $ | — | $ | — | $ | 61,419 | |||||||
Securities available for sale | 282,846 | 187,961 | 94,885 | — | 282,846 | ||||||||||||
Federal Reserve Bank, TIB and FHLB stock, at cost | 10,827 | 10,827 | — | — | 10,827 | ||||||||||||
Loans held for sale, net | 3,176 | — | 3,176 | — | 3,176 | ||||||||||||
Loans held for investment, net | 1,130,975 | — | — | 1,225,352 | 1,225,352 | ||||||||||||
Accrued interest receivable | 5,629 | 5,629 | — | — | 5,629 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,284,134 | 998,217 | 284,403 | — | 1,282,620 | ||||||||||||
FHLB advances | 35,000 | 35,000 | — | — | 35,000 | ||||||||||||
Other borrowings | 51,474 | — | 53,435 | — | 53,435 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,766 | — | 4,766 | ||||||||||||
Accrued interest payable | 195 | 195 | — | — | 195 | ||||||||||||
At December 31, 2012 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 59,352 | $ | 59,352 | $ | — | $ | — | $ | 59,352 | |||||||
Securities available for sale | 84,066 | 81,042 | 2,072 | 952 | 84,066 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 11,247 | 11,247 | — | — | 11,247 | ||||||||||||
Loans held for sale, net | 3,681 | — | 3,681 | — | 3,681 | ||||||||||||
Loans held for investment, net | 974,213 | — | — | 1,049,589 | 1,049,589 | ||||||||||||
Accrued interest receivable | 4,126 | 4,126 | — | — | 4,126 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 904,768 | 548,101 | 363,382 | — | 911,483 | ||||||||||||
FHLB advances | 87,000 | 87,000 | — | — | 87,000 | ||||||||||||
Other borrowings | 28,500 | — | 31,267 | — | 31,267 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,973 | — | 4,973 | ||||||||||||
Accrued interest payable | 142 | 142 | — | — | 142 | ||||||||||||
At September 30, 2012 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 58,243 | $ | 58,243 | $ | — | $ | — | $ | 58,243 | |||||||
Securities available for sale | 114,250 | 54,099 | 59,190 | 961 | 114,250 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 12,191 | 12,191 | — | — | 12,191 | ||||||||||||
Loans held for sale, net | 4,728 | — | 4,728 | — | 4,728 | ||||||||||||
Loans held for investment, net | 851,715 | — | — | 931,640 | 931,640 | ||||||||||||
Accrued interest receivable | 3,933 | 3,933 | — | — | 3,933 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 895,870 | 476,852 | 422,036 | — | 898,888 | ||||||||||||
FHLB advances | 47,000 | 47,000 | — | — | 47,000 | ||||||||||||
Other borrowings | 28,500 | — | 32,360 | — | 32,360 | ||||||||||||
Subordinated debentures | 10,310 | — | 8,222 | — | 8,222 | ||||||||||||
Accrued interest payable | 213 | 213 | — | — | 213 | ||||||||||||
Schedule of Off-balance sheet commitments and standby letters of credit | ' | ||||||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 333,592 | $ | — | $ | 33,359 | $ | — | $ | 33,359 | |||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 131,450 | $ | — | $ | 13,145 | $ | — | $ | 13,145 | |||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 152,057 | $ | — | $ | 15,206 | $ | — | $ | 15,206 | |||||||
Schedule of Company's assets measured at fair value on a recurring basis | ' | ||||||||||||||||
September 30, 2013 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Securities at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
U.S. Treasury | $ | 82 | $ | — | $ | — | $ | 82 | |||||||||
Municipal bonds | — | 94,885 | — | 94,885 | |||||||||||||
Mortgage-backed securities | 187,879 | — | — | 187,879 | |||||||||||||
Total securities available for sale | $ | 187,961 | $ | 94,885 | $ | — | $ | 282,846 | |||||||||
Stock: | |||||||||||||||||
FHLB stock | $ | 7,532 | $ | — | $ | — | $ | 7,532 | |||||||||
Federal Reserve Bank stock | 3,295 | — | — | 3,295 | |||||||||||||
Total stock | 10,827 | — | — | 10,827 | |||||||||||||
Total securities | $ | 198,788 | $ | 94,885 | $ | — | $ | 293,673 | |||||||||
September 30, 2012 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Securities at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
U.S. Treasury | $ | 160 | $ | — | $ | — | $ | 160 | |||||||||
Municipal bonds | — | 57,097 | — | 57,097 | |||||||||||||
Mortgage-backed securities | 53,939 | 2,093 | 961 | 56,993 | |||||||||||||
Total securities available for sale | $ | 54,099 | $ | 59,190 | $ | 961 | $ | 114,250 | |||||||||
Stock: | |||||||||||||||||
FHLB stock | $ | 10,172 | $ | — | $ | — | $ | 10,172 | |||||||||
Federal Reserve Bank stock | 2,019 | — | — | 2,019 | |||||||||||||
Total stock | 12,191 | — | — | 12,191 | |||||||||||||
Total securities | $ | 66,290 | $ | 59,190 | $ | 961 | $ | 126,441 | |||||||||
Schedule of changes in balance sheet carrying values measured at fair value on a recurring basis using significant unobservable (Level 3) inputs | ' | ||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 952 | $ | 991 | |||||||||||||
Total gains or (losses) realized/unrealized: | |||||||||||||||||
Included in earnings (or changes in net assets) | 194 | (118 | ) | ||||||||||||||
Included in other comprehensive income | (140 | ) | 290 | ||||||||||||||
Purchases, issuances, and settlements | (1,077 | ) | (202 | ) | |||||||||||||
Transfer in and/or out of Level 3 | 71 | — | |||||||||||||||
Balance, end of period | $ | — | $ | 961 | |||||||||||||
Schedule of Company's assets measured at fair value on a non-recurring basis | ' | ||||||||||||||||
September 30, 2013 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 1,161 | $ | 1,161 | |||||||||
Other real estate owned | — | — | 1,186 | 1,186 | |||||||||||||
Total assets | $ | — | $ | — | $ | 2,347 | $ | 2,347 | |||||||||
September 30, 2012 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 2,866 | $ | 2,866 | |||||||||
Other real estate owned | — | — | 5,521 | 5,521 | |||||||||||||
Total assets | $ | — | $ | — | $ | 8,387 | $ | 8,387 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (Core deposit) | 9 Months Ended |
Sep. 30, 2013 | |
Minimum | ' |
Significant Accounting Policies | ' |
Estimated useful lives | '8 years |
Maximum | ' |
Significant Accounting Policies | ' |
Estimated useful lives | '10 years |
Acquisitions_Details
Acquisitions (Details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 25, 2013 | Sep. 30, 2013 | Jun. 25, 2013 | Jun. 25, 2013 | Jun. 25, 2013 | Mar. 15, 2013 | Sep. 30, 2013 | Mar. 15, 2013 | Mar. 15, 2013 | Apr. 27, 2012 | Feb. 11, 2011 | |
Acquired Loans | San Diego Trust Bank | San Diego Trust Bank | San Diego Trust Bank | San Diego Trust Bank | San Diego Trust Bank | First Association Bank | First Association Bank | First Association Bank | First Association Bank | Palm Desert National | Canyon National | |||
item | Maximum | Book Value | Fair Value Adjustments | item | Book Value | Fair Value Adjustments | item | item | ||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | $16,200,000 | ' | ' | ' | ' | $43,000,000 | ' | ' | ' | ' | ' |
Number of shares of common stock issued as consideration | ' | ' | ' | 1,198,255 | ' | ' | ' | ' | 1,279,217 | ' | ' | ' | ' | ' |
Number of entities in business combination | ' | ' | ' | 2 | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of branches acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 3 |
ASSETS ACQUIRED | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | 30,252,000 | ' | ' | 30,252,000 | ' | 167,663,000 | ' | 167,663,000 | ' | 39,500,000 | 13,200,000 |
Investment securities | ' | ' | ' | 124,805,000 | ' | ' | 124,960,000 | -155,000 | 222,391,000 | ' | 219,913,000 | 2,478,000 | 1,500,000 | 12,800,000 |
Loans, gross | ' | ' | ' | 42,393,000 | ' | ' | 42,945,000 | -552,000 | 26,422,000 | ' | 26,264,000 | 158,000 | 63,800,000 | 149,700,000 |
Allowance for loan losses | ' | ' | ' | ' | ' | ' | -1,013,000 | 1,013,000 | ' | ' | -224,000 | 224,000 | ' | ' |
Other real estate owned | ' | ' | ' | 752,000 | ' | ' | 752,000 | ' | ' | ' | ' | ' | 11,500,000 | 12,000,000 |
Core deposit intangible | ' | ' | ' | 2,836,000 | ' | ' | ' | 2,836,000 | 1,930,000 | ' | ' | 1,930,000 | 840,000 | 2,300,000 |
Other assets | ' | ' | ' | 9,856,000 | ' | ' | 9,856,000 | ' | 5,823,000 | ' | 5,823,000 | ' | 3,800,000 | 1,500,000 |
Total assets acquired | ' | ' | ' | 210,894,000 | ' | ' | 207,752,000 | 3,142,000 | 424,229,000 | ' | 419,439,000 | 4,790,000 | 120,900,000 | 208,900,000 |
LIABILITIES ASSUMED | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | 183,907,000 | ' | ' | 183,901,000 | 6,000 | 356,818,000 | ' | 356,737,000 | 81,000 | ' | 204,700,000 |
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 16,905,000 | ' | 16,905,000 | ' | ' | ' |
Deferred tax liability (asset) | ' | ' | ' | 922,000 | ' | ' | -333,000 | 1,255,000 | 3,918,000 | ' | ' | 3,918,000 | 2,400,000 | 1,900,000 |
Other liabilities | ' | ' | ' | 1,823,000 | ' | ' | 1,823,000 | ' | 536,000 | ' | 536,000 | ' | 578,000 | 39,000 |
Total liabilities assumed | ' | ' | ' | 186,652,000 | ' | ' | 185,391,000 | 1,261,000 | 378,177,000 | ' | 374,178,000 | 3,999,000 | 118,000,000 | 206,600,000 |
Excess of assets acquired over liabilities assumed | ' | ' | ' | 24,242,000 | ' | ' | 22,361,000 | 1,881,000 | 46,052,000 | ' | 45,261,000 | 791,000 | ' | ' |
Consideration paid | ' | ' | ' | 30,622,000 | ' | ' | ' | ' | 57,906,000 | ' | ' | ' | ' | ' |
Goodwill recognized | ' | ' | ' | 6,380,000 | ' | ' | ' | ' | 11,854,000 | ' | ' | ' | ' | ' |
Total purchase credit impaired loans | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Extension period for measurement of fair values | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual amounts due | ' | ' | 79,358,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected cash flows | ' | ' | 79,358,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest component of expected cash flows | ' | ' | 10,543,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of acquired loans | ' | ' | 68,815,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro forma net interest and other income, net income and earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest and other income | 52,738,000 | 55,791,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 5,648,000 | 14,902,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.36 | $1.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $0.35 | $1.13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposit transaction accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,100,000 | ' |
Retail certificates of deposit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,800,000 | ' |
Wholesale deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,100,000 | ' |
FDIC receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,100,000 |
Federal Reserve Bank stock and Federal Home Loan Bank stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,300,000 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
item | |||
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | $287,326,000 | $82,189,000 | $111,943,000 |
Unrealized Gain | 900,000 | 2,360,000 | 2,801,000 |
Unrealized Loss | -5,380,000 | -483,000 | -494,000 |
Estimated Fair Value | 282,846,000 | 84,066,000 | 114,250,000 |
Stock, Estimated Fair Value | ' | ' | ' |
FHLB stock | 7,500,000 | ' | ' |
Additional disclosures | ' | ' | ' |
Excess FHLB stock with the entity repurchased by FHLB through their stock repurchase program | 3,000,000 | ' | ' |
Number of inverse putable reverse repurchase of the Bank's secured by collateral | 3 | ' | ' |
Value of inverse putable reverse repurchases secured by collateral | 28,500,000 | ' | ' |
U.S. Treasury | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | 73,000 | 147,000 | 147,000 |
Unrealized Gain | 9,000 | 12,000 | 13,000 |
Estimated Fair Value | 82,000 | 159,000 | 160,000 |
Municipal bonds | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | 95,971,000 | 25,401,000 | 55,445,000 |
Unrealized Gain | 709,000 | 1,186,000 | 1,667,000 |
Unrealized Loss | -1,795,000 | -1,000 | -15,000 |
Estimated Fair Value | 94,885,000 | 26,586,000 | 57,097,000 |
Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | 191,282,000 | 56,641,000 | 56,351,000 |
Unrealized Gain | 182,000 | 1,162,000 | 1,121,000 |
Unrealized Loss | -3,585,000 | -482,000 | -479,000 |
Estimated Fair Value | 187,879,000 | 57,321,000 | 56,993,000 |
Additional disclosures | ' | ' | ' |
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 34,900,000 | ' | ' |
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $36,000,000 | ' | ' |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | item | item | item |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' | ' |
Less than 12 months, Number | 170 | 3 | 13 |
Less than 12 months, Fair Value | $196,696 | $15,420 | $11,800 |
Less than 12 months, Gross Unrealized Holding Losses | -4,520 | -153 | -48 |
12 months or more, Number | 1 | 31 | 34 |
12 months or more, Fair Value | 13,117 | 1,012 | 1,004 |
12 months or more, Gross Unrealized Holding Losses | -860 | -330 | -446 |
Total, Number | 171 | 34 | 47 |
Total, Fair Value | 209,813 | 16,432 | 12,804 |
Total, Gross Unrealized Holding Losses | -5,380 | -483 | -494 |
Municipal bonds | ' | ' | ' |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' | ' |
Less than 12 months, Number | 131 | 1 | 9 |
Less than 12 months, Fair Value | 60,183 | 292 | 2,775 |
Less than 12 months, Gross Unrealized Holding Losses | -1,795 | -1 | -15 |
Total, Number | 131 | 1 | 9 |
Total, Fair Value | 60,183 | 292 | 2,775 |
Total, Gross Unrealized Holding Losses | -1,795 | -1 | -15 |
Mortgage-backed securities | ' | ' | ' |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' | ' |
Less than 12 months, Number | 39 | 2 | 4 |
Less than 12 months, Fair Value | 136,513 | 15,128 | 9,025 |
Less than 12 months, Gross Unrealized Holding Losses | -2,725 | -152 | -33 |
12 months or more, Number | 1 | 31 | 34 |
12 months or more, Fair Value | 13,117 | 1,012 | 1,004 |
12 months or more, Gross Unrealized Holding Losses | -860 | -330 | -446 |
Total, Number | 40 | 33 | 38 |
Total, Fair Value | 149,630 | 16,140 | 10,029 |
Total, Gross Unrealized Holding Losses | ($3,585) | ($482) | ($479) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Investment securities available for sale, Amortized Cost | ' | ' | ' |
More than One Year to Five Years | $10,068,000 | ' | ' |
More than Five Years to Ten Years | 56,887,000 | ' | ' |
More than Ten Years | 220,371,000 | ' | ' |
Total | 287,326,000 | ' | ' |
Investment securities available for sale, Fair Value | ' | ' | ' |
More than One Year to Five Years | 9,987,000 | ' | ' |
More than Five Years to Ten Years | 56,430,000 | ' | ' |
More than Ten Years | 216,429,000 | ' | ' |
Total | 282,846,000 | 84,066,000 | 114,250,000 |
Accumulated other comprehensive income (loss) | -4,500,000 | 1,900,000 | ' |
Accumulated other comprehensive income (loss), net of tax | -2,637,000 | 1,105,000 | 1,358,000 |
U.S. Treasury | ' | ' | ' |
Investment securities available for sale, Amortized Cost | ' | ' | ' |
More than One Year to Five Years | 73,000 | ' | ' |
Total | 73,000 | ' | ' |
Investment securities available for sale, Fair Value | ' | ' | ' |
More than One Year to Five Years | 82,000 | ' | ' |
Total | 82,000 | ' | ' |
Municipal bonds | ' | ' | ' |
Investment securities available for sale, Amortized Cost | ' | ' | ' |
More than One Year to Five Years | 9,995,000 | ' | ' |
More than Five Years to Ten Years | 42,734,000 | ' | ' |
More than Ten Years | 43,242,000 | ' | ' |
Total | 95,971,000 | ' | ' |
Investment securities available for sale, Fair Value | ' | ' | ' |
More than One Year to Five Years | 9,905,000 | ' | ' |
More than Five Years to Ten Years | 42,392,000 | ' | ' |
More than Ten Years | 42,588,000 | ' | ' |
Total | 94,885,000 | ' | ' |
Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale, Amortized Cost | ' | ' | ' |
More than Five Years to Ten Years | 14,153,000 | ' | ' |
More than Ten Years | 177,129,000 | ' | ' |
Total | 191,282,000 | ' | ' |
Investment securities available for sale, Fair Value | ' | ' | ' |
More than Five Years to Ten Years | 14,038,000 | ' | ' |
More than Ten Years | 173,841,000 | ' | ' |
Total | $187,879,000 | ' | ' |
Loans_Held_for_Investment_Deta
Loans Held for Investment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Maximum | Canyon National | Palm Desert National | San Diego Trust Bank | FAB | Business loans: Commercial and industrial | Business loans: Commercial and industrial | Business loans: Commercial and industrial | Business loans: Commercial and industrial | Business loans: Commercial owner occupied | Business loans: Commercial owner occupied | Business loans: Commercial owner occupied | Business loans: Commercial owner occupied | Business loans: SBA | Business loans: SBA | Business loans: SBA | Business loans: SBA | Business loans: Warehouse facilities | Business loans: Warehouse facilities | Business loans: Warehouse facilities | Business loans: Warehouse facilities | Real estate loans: Commercial non-owner occupied | Real estate loans: Commercial non-owner occupied | Real estate loans: Commercial non-owner occupied | Real estate loans: Commercial non-owner occupied | Real estate loans: Multi-family | Real estate loans: Multi-family | Real estate loans: Multi-family | Real estate loans: Multi-family | Real estate loans: One-to-four family | Real estate loans: One-to-four family | Real estate loans: One-to-four family | Real estate loans: One-to-four family | Real estate loans: Construction | Real estate loans: Construction | Real estate loans: Land | Real estate loans: Land | Real estate loans: Land | Real estate loans: Land | Other loans | Other loans | Other loans | Other loans | |||||
Loans Held for Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | $1,142,015,000 | $986,194,000 | $864,838,000 | ' | ' | ' | ' | ' | ' | $173,720,000 | $115,354,000 | $88,105,000 | ' | $222,162,000 | $150,934,000 | $148,139,000 | ' | $6,455,000 | $6,882,000 | $4,736,000 | ' | $49,104,000 | $195,761,000 | $112,053,000 | ' | $304,979,000 | $253,409,000 | $262,046,000 | ' | $218,929,000 | $156,424,000 | $173,484,000 | ' | $152,667,000 | $97,463,000 | $62,771,000 | ' | $2,835,000 | $308,000 | $7,371,000 | $8,774,000 | $11,005,000 | ' | $3,793,000 | $1,193,000 | $2,191,000 | ' |
Less loans held for sale, net | 3,176,000 | 3,681,000 | 4,728,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 1,138,839,000 | 982,513,000 | 860,110,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Deferred loan origination costs (fees) and premiums (discounts), net | 130,000 | -306,000 | -737,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Allowance for loan losses | -7,994,000 | -7,994,000 | -7,658,000 | -8,522,000 | ' | ' | ' | ' | ' | -2,801,000 | -1,310,000 | -824,000 | -1,361,000 | -1,519,000 | -1,512,000 | -1,151,000 | -1,119,000 | -50,000 | -79,000 | -66,000 | -80,000 | -225,000 | -1,544,000 | -1,046,000 | -1,347,000 | -1,403,000 | -1,459,000 | -2,036,000 | -1,287,000 | -506,000 | -1,145,000 | -2,097,000 | -2,281,000 | -1,174,000 | -862,000 | -418,000 | -931,000 | -121,000 | ' | -147,000 | -31,000 | ' | -39,000 | -48,000 | -52,000 | -20,000 | -77,000 |
Loans held for investment, net | 1,130,975,000 | 974,213,000 | 851,715,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unaccreted mark-to-market discount | ' | ' | ' | ' | ' | 2,300,000 | 3,700,000 | 230,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mark-to-market premium | ' | ' | ' | ' | ' | ' | ' | ' | 103,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured loans limit to one borrower (as a percent) | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured loans limit to one borrower (as a percent) | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured loans limit to one borrower | 45,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured loans limit to one borrower | 27,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate outstanding balance of loans to one borrower of secured credit | $34,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_Held_for_Investment_Deta1
Loans Held for Investment (Details 2) (USD $) | Sep. 30, 2013 |
Purchased Credit Impaired | ' |
Total purchase credit impaired | $2,225,000 |
Purchased credit impaired loans, nonaccrual status | 10,000 |
Canyon National | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 2,030,000 |
Palm Desert National | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 195,000 |
Business loans: Commercial and industrial | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 253,000 |
Business loans: Commercial and industrial | Canyon National | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 79,000 |
Business loans: Commercial and industrial | Palm Desert National | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 174,000 |
Business loans: Commercial owner occupied | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 942,000 |
Business loans: Commercial owner occupied | Canyon National | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 942,000 |
Real estate loans: Commercial non-owner occupied | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 1,009,000 |
Real estate loans: Commercial non-owner occupied | Canyon National | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 1,009,000 |
Real estate loans: One-to-four family | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | 21,000 |
Real estate loans: One-to-four family | Palm Desert National | ' |
Purchased Credit Impaired | ' |
Total purchase credit impaired | $21,000 |
Loans_Held_for_Investment_Deta2
Loans Held for Investment (Details 3) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Accretable yield on purchased credit impaired | ' |
Balance at the beginning of period | $2,276 |
Accretion | -397 |
Disposals and other | -545 |
Change in accretable yield | 605 |
Balance at the end of period | 1,939 |
Canyon National | ' |
Accretable yield on purchased credit impaired | ' |
Balance at the beginning of period | 2,029 |
Accretion | -348 |
Disposals and other | -31 |
Change in accretable yield | 157 |
Balance at the end of period | 1,807 |
Palm Desert National | ' |
Accretable yield on purchased credit impaired | ' |
Balance at the beginning of period | 247 |
Accretion | -49 |
Disposals and other | -514 |
Change in accretable yield | 448 |
Balance at the end of period | $132 |
Loans_Held_for_Investment_Deta3
Loans Held for Investment (Details 4) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | $1,660 | $4,028 | $3,538 |
Recorded Investment | 1,161 | 2,866 | 2,736 |
With Specific Allowance | 282 | 359 | 828 |
Without Specific Allowance | 879 | 2,507 | 1,908 |
Specific Allowance for Impaired Loans | 104 | 189 | 665 |
Average Recorded Investment | 2,438 | 4,571 | 3,989 |
Interest Income Recognized | 418 | 153 | 190 |
Nonaccruing loans | 972 | 1,439 | 1,988 |
Accruing loans | 189 | 1,427 | 748 |
Total impaired loans | 1,161 | 2,866 | 2,736 |
Loans 90 days or more past due and still accruing | 0 | 0 | 0 |
Business loans: Commercial and industrial | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | 186 | 59 | 707 |
Recorded Investment | 68 | 60 | 593 |
With Specific Allowance | ' | 60 | 287 |
Without Specific Allowance | 68 | ' | 306 |
Specific Allowance for Impaired Loans | ' | 36 | 270 |
Average Recorded Investment | 326 | 140 | 203 |
Interest Income Recognized | 71 | 3 | 29 |
Total impaired loans | 68 | 60 | 593 |
Business loans: Commercial owner occupied | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Average Recorded Investment | 153 | 592 | 444 |
Interest Income Recognized | 18 | ' | ' |
Business loans: SBA | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | 246 | 1,368 | 810 |
Recorded Investment | 14 | 309 | 259 |
Without Specific Allowance | 14 | 309 | 259 |
Average Recorded Investment | 60 | 518 | 468 |
Interest Income Recognized | 16 | 37 | 21 |
Total impaired loans | 14 | 309 | 259 |
Number of TDRs | 2 | ' | ' |
Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | 527 | 507 | 746 |
Recorded Investment | 437 | 460 | 670 |
Without Specific Allowance | 437 | 460 | 670 |
Average Recorded Investment | 983 | 1,257 | 1,031 |
Interest Income Recognized | 157 | 15 | 59 |
Total impaired loans | 437 | 460 | 670 |
Real estate loans: Multi-family | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | ' | 1,437 | 315 |
Recorded Investment | ' | 1,394 | 266 |
Without Specific Allowance | ' | 1,394 | 266 |
Average Recorded Investment | 144 | 1,408 | 1,123 |
Interest Income Recognized | 2 | 67 | 22 |
Total impaired loans | ' | 1,394 | 266 |
Real estate loans: One-to-four family | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | 701 | 657 | 960 |
Recorded Investment | 642 | 643 | 948 |
With Specific Allowance | 282 | 299 | 541 |
Without Specific Allowance | 360 | 344 | 407 |
Specific Allowance for Impaired Loans | 104 | 153 | 395 |
Average Recorded Investment | 772 | 656 | 720 |
Interest Income Recognized | 154 | 31 | 59 |
Total impaired loans | $642 | $643 | $948 |
Loans_Held_for_Investment_Deta4
Loans Held for Investment (Details 5) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
item | |||
Loans Held for Investment | ' | ' | ' |
Number of areas where the entity's credit quality is maintained and credit risk managed | 2 | ' | ' |
Number of Pass scale grades | 6 | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | $1,142,015 | $986,194 | $864,838 |
Business loans: Commercial and industrial | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 173,720 | 115,354 | 88,105 |
Business loans: Commercial owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 222,162 | 150,934 | 148,139 |
Business loans: SBA | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 6,455 | 6,882 | 4,736 |
Business loans: Warehouse facilities | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 49,104 | 195,761 | 112,053 |
Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 304,979 | 253,409 | 262,046 |
Real estate loans: Multi-family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 218,929 | 156,424 | 173,484 |
Real estate loans: One-to-four family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 152,667 | 97,463 | 62,771 |
Real estate loans: Construction | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 2,835 | ' | 308 |
Real estate loans: Land | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 7,371 | 8,774 | 11,005 |
Other loans | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 3,793 | 1,193 | 2,191 |
Pass | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 1,117,312 | 940,393 | 835,247 |
Pass | Business loans: Commercial and industrial | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 170,840 | 111,895 | 86,000 |
Pass | Business loans: Commercial owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 207,519 | 136,330 | 137,289 |
Pass | Business loans: SBA | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 6,455 | 6,819 | 4,455 |
Pass | Business loans: Warehouse facilities | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 49,104 | 195,761 | 112,053 |
Pass | Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 299,940 | 240,585 | 252,216 |
Pass | Real estate loans: Multi-family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 217,897 | 143,003 | 170,365 |
Pass | Real estate loans: One-to-four family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 151,564 | 96,061 | 61,378 |
Pass | Real estate loans: Construction | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 2,835 | ' | 308 |
Pass | Real estate loans: Land | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 7,371 | 8,762 | 9,009 |
Pass | Other loans | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 3,787 | 1,177 | 2,174 |
Special Mention | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 3,568 | 15,036 | 4,844 |
Special Mention | Business loans: Commercial and industrial | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 68 | 92 | 847 |
Special Mention | Business loans: Commercial owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 2,632 | 2,674 | 3,334 |
Special Mention | Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 355 | 687 | 663 |
Special Mention | Real estate loans: Multi-family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 513 | 11,583 | ' |
Substandard | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 21,135 | 30,765 | 24,747 |
Substandard | Business loans: Commercial and industrial | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 2,812 | 3,367 | 1,258 |
Substandard | Business loans: Commercial owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 12,011 | 11,930 | 7,516 |
Substandard | Business loans: SBA | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | ' | 63 | 281 |
Substandard | Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 4,684 | 12,137 | 9,167 |
Substandard | Real estate loans: Multi-family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 519 | 1,838 | 3,119 |
Substandard | Real estate loans: One-to-four family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 1,103 | 1,402 | 1,393 |
Substandard | Real estate loans: Land | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | ' | 12 | 1,996 |
Substandard | Other loans | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | $6 | $16 | $17 |
Loans_Held_for_Investment_Deta5
Loans Held for Investment (Details 6) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Other information concerning the credit quality | ' | ' | ' |
Current | $1,140,966 | $985,303 | $857,955 |
30-59 Days Past Due | 724 | 106 | 2,565 |
60-89 Days Past Due | 214 | 303 | 164 |
90+ Days Past Due | 111 | 482 | 4,154 |
Total | 1,142,015 | 986,194 | 864,838 |
Non-Accruing | 1,153 | 2,206 | 6,280 |
Business loans: Commercial and industrial | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 173,478 | 115,078 | 87,984 |
30-59 Days Past Due | 163 | ' | ' |
60-89 Days Past Due | 79 | 58 | 121 |
90+ Days Past Due | ' | 218 | ' |
Total | 173,720 | 115,354 | 88,105 |
Non-Accruing | 78 | 347 | ' |
Business loans: Commercial owner occupied | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 222,162 | 150,689 | 147,812 |
30-59 Days Past Due | ' | ' | 327 |
60-89 Days Past Due | ' | 245 | ' |
Total | 222,162 | 150,934 | 148,139 |
Non-Accruing | ' | 14 | 218 |
Business loans: SBA | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 6,312 | 6,697 | 4,551 |
60-89 Days Past Due | 129 | ' | ' |
90+ Days Past Due | 14 | 185 | 185 |
Total | 6,455 | 6,882 | 4,736 |
Non-Accruing | 142 | 260 | 266 |
Business loans: Warehouse facilities | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 49,104 | 195,761 | 112,053 |
Total | 49,104 | 195,761 | 112,053 |
Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 304,420 | 253,409 | 256,489 |
30-59 Days Past Due | 559 | ' | 1,708 |
90+ Days Past Due | ' | ' | 3,849 |
Total | 304,979 | 253,409 | 262,046 |
Non-Accruing | 437 | 670 | 4,528 |
Real estate loans: Multi-family | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 218,929 | 156,424 | 173,484 |
Total | 218,929 | 156,424 | 173,484 |
Non-Accruing | ' | 266 | 273 |
Real estate loans: One-to-four family | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 152,570 | 97,283 | 62,307 |
30-59 Days Past Due | ' | 101 | 301 |
60-89 Days Past Due | ' | ' | 43 |
90+ Days Past Due | 97 | 79 | 120 |
Total | 152,667 | 97,463 | 62,771 |
Non-Accruing | 496 | 522 | 578 |
Real estate loans: Construction | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 2,835 | ' | 308 |
Total | 2,835 | ' | 308 |
Real estate loans: Land | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 7,371 | 8,774 | 10,776 |
30-59 Days Past Due | ' | ' | 229 |
Total | 7,371 | 8,774 | 11,005 |
Non-Accruing | ' | 127 | 417 |
Other loans | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 3,785 | 1,188 | 2,191 |
30-59 Days Past Due | 2 | 5 | ' |
60-89 Days Past Due | 6 | ' | ' |
Total | $3,793 | $1,193 | $2,191 |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | $7,994 | $8,522 | ' |
Charge-offs | ' | ' | -1,608 | -1,207 | ' |
Recoveries | ' | ' | 344 | 198 | ' |
Provisions for (reduction in) loan losses | 646 | 145 | 1,264 | 145 | ' |
Balance, at the end of the period | 7,994 | 7,658 | 7,994 | 7,658 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | 104 | 189 | 104 | 189 | 665 |
Amount of allowance attributed to: General portfolio allocation | 7,890 | 7,469 | 7,890 | 7,469 | ' |
Loans individually evaluated for impairment | 1,161 | 2,866 | 1,161 | 2,866 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 8.96% | 6.59% | ' |
Loans collectively evaluated for impairment | 1,140,854 | 861,972 | 1,140,854 | 861,972 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.69% | 0.87% | ' |
Total gross loans | 1,142,015 | 864,838 | 1,142,015 | 864,838 | 986,194 |
Total allowance to gross loans (as a percent) | ' | ' | 0.70% | 0.89% | ' |
Owner Occupied Commercial Real Estate Loans, Commercial and Industrial Loans and SBA Loans | ' | ' | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' | ' | ' |
Actual trailing period considered for determination of allowance for loan losses factor | ' | ' | '36 months | ' | ' |
Trailing period one considered for determination of allowance for loan losses factor | ' | ' | '24 months | ' | ' |
Trailing period two considered for determination of allowance for loan losses factor | ' | ' | '12 months | ' | ' |
Annualized trailing period considered for determination of allowance for loan losses factor | ' | ' | '6 months | ' | ' |
Period considered for comparison of allowance for loan losses factor | ' | ' | '10 years | ' | ' |
Period considered for comparison of entity's allowance for loan losses factor | ' | ' | '15 years | ' | ' |
Trailing period considered for comparison of allowance for loan losses factor | ' | ' | '12 months | ' | ' |
Multi-Family and Non-Owner Occupied Commercial Real Estate Loans | ' | ' | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' | ' | ' |
Actual trailing period considered for determination of allowance for loan losses factor | ' | ' | '36 months | ' | ' |
Trailing period one considered for determination of allowance for loan losses factor | ' | ' | '24 months | ' | ' |
Trailing period two considered for determination of allowance for loan losses factor | ' | ' | '12 months | ' | ' |
Annualized trailing period considered for determination of allowance for loan losses factor | ' | ' | '6 months | ' | ' |
Period considered for comparison of allowance for loan losses factor | ' | ' | '10 years | ' | ' |
Period considered for comparison of entity's allowance for loan losses factor | ' | ' | '15 years | ' | ' |
Trailing period considered for comparison of allowance for loan losses factor | ' | ' | '12 months | ' | ' |
One-to-Four Family and Consumer Loans | ' | ' | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' | ' | ' |
Actual trailing period considered for determination of allowance for loan losses factor | ' | ' | '36 months | ' | ' |
Trailing period one considered for determination of allowance for loan losses factor | ' | ' | '24 months | ' | ' |
Trailing period two considered for determination of allowance for loan losses factor | ' | ' | '12 months | ' | ' |
Annualized trailing period considered for determination of allowance for loan losses factor | ' | ' | '6 months | ' | ' |
Period considered for comparison of allowance for loan losses factor | ' | ' | '10 years | ' | ' |
Period considered for comparison of entity's allowance for loan losses factor | ' | ' | '15 years | ' | ' |
Trailing period considered for comparison of allowance for loan losses factor | ' | ' | '12 months | ' | ' |
Single Family and Consumer Loans and Warehouse Repurchase Facilities | ' | ' | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' | ' | ' |
Period considered for comparison of allowance for loan losses factor | ' | ' | '10 years | ' | ' |
Period considered for comparison of entity's allowance for loan losses factor | ' | ' | '15 years | ' | ' |
Trailing period considered for comparison of allowance for loan losses factor | ' | ' | '12 months | ' | ' |
Commercial and industrial | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,310 | 1,361 | ' |
Charge-offs | ' | ' | -291 | -270 | ' |
Recoveries | ' | ' | 107 | 2 | ' |
Provisions for (reduction in) loan losses | ' | ' | 1,675 | -269 | ' |
Balance, at the end of the period | 2,801 | 824 | 2,801 | 824 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | ' | 36 | ' | 36 | 270 |
Amount of allowance attributed to: General portfolio allocation | 2,801 | 788 | 2,801 | 788 | ' |
Loans individually evaluated for impairment | 68 | 60 | 68 | 60 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 60.00% | ' |
Loans collectively evaluated for impairment | 173,652 | 88,045 | 173,652 | 88,045 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 1.61% | 0.89% | ' |
Total gross loans | 173,720 | 88,105 | 173,720 | 88,105 | 115,354 |
Total allowance to gross loans (as a percent) | ' | ' | 1.61% | 0.94% | ' |
Commercial owner occupied | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,512 | 1,119 | ' |
Charge-offs | ' | ' | -163 | -405 | ' |
Provisions for (reduction in) loan losses | ' | ' | 170 | 437 | ' |
Balance, at the end of the period | 1,519 | 1,151 | 1,519 | 1,151 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 1,519 | 1,151 | 1,519 | 1,151 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 222,162 | 148,139 | 222,162 | 148,139 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.68% | 0.78% | ' |
Total gross loans | 222,162 | 148,139 | 222,162 | 148,139 | 150,934 |
Total allowance to gross loans (as a percent) | ' | ' | 0.68% | 0.78% | ' |
SBA | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 79 | 80 | ' |
Charge-offs | ' | ' | -16 | -132 | ' |
Recoveries | ' | ' | 51 | 162 | ' |
Provisions for (reduction in) loan losses | ' | ' | -64 | -44 | ' |
Balance, at the end of the period | 50 | 66 | 50 | 66 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 50 | 66 | 50 | 66 | ' |
Loans individually evaluated for impairment | 14 | 309 | 14 | 309 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 6,441 | 4,427 | 6,441 | 4,427 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.78% | 1.49% | ' |
Total gross loans | 6,455 | 4,736 | 6,455 | 4,736 | 6,882 |
Total allowance to gross loans (as a percent) | ' | ' | 0.77% | 1.39% | ' |
Warehouse | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,544 | 1,347 | ' |
Provisions for (reduction in) loan losses | ' | ' | -1,319 | -301 | ' |
Balance, at the end of the period | 225 | 1,046 | 225 | 1,046 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 225 | 1,046 | 225 | 1,046 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 49,104 | 112,053 | 49,104 | 112,053 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.46% | 0.93% | ' |
Total gross loans | 49,104 | 112,053 | 49,104 | 112,053 | 195,761 |
Total allowance to gross loans (as a percent) | ' | ' | 0.46% | 0.93% | ' |
Commercial non-owner occupied | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,459 | 1,287 | ' |
Charge-offs | ' | ' | -757 | -88 | ' |
Recoveries | ' | ' | ' | 2 | ' |
Provisions for (reduction in) loan losses | ' | ' | 701 | 835 | ' |
Balance, at the end of the period | 1,403 | 2,036 | 1,403 | 2,036 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 1,403 | 2,036 | 1,403 | 2,036 | ' |
Loans individually evaluated for impairment | 437 | 460 | 437 | 460 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 304,542 | 261,586 | 304,542 | 261,586 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.46% | 0.78% | ' |
Total gross loans | 304,979 | 262,046 | 304,979 | 262,046 | 253,409 |
Total allowance to gross loans (as a percent) | ' | ' | 0.46% | 0.78% | ' |
Multi-family | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,145 | 2,281 | ' |
Charge-offs | ' | ' | -101 | ' | ' |
Provisions for (reduction in) loan losses | ' | ' | -538 | -184 | ' |
Balance, at the end of the period | 506 | 2,097 | 506 | 2,097 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 506 | 2,097 | 506 | 2,097 | ' |
Loans individually evaluated for impairment | ' | 1,394 | ' | 1,394 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 218,929 | 172,090 | 218,929 | 172,090 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.23% | 1.22% | ' |
Total gross loans | 218,929 | 173,484 | 218,929 | 173,484 | 156,424 |
Total allowance to gross loans (as a percent) | ' | ' | 0.23% | 1.21% | ' |
One-to-four family | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 862 | 931 | ' |
Charge-offs | ' | ' | -273 | -305 | ' |
Recoveries | ' | ' | 45 | 7 | ' |
Provisions for (reduction in) loan losses | ' | ' | 540 | -215 | ' |
Balance, at the end of the period | 1,174 | 418 | 1,174 | 418 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | 104 | 153 | 104 | 153 | 395 |
Amount of allowance attributed to: General portfolio allocation | 1,070 | 265 | 1,070 | 265 | ' |
Loans individually evaluated for impairment | 642 | 643 | 642 | 643 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 16.20% | 23.79% | ' |
Loans collectively evaluated for impairment | 152,025 | 62,128 | 152,025 | 62,128 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.70% | 0.43% | ' |
Total gross loans | 152,667 | 62,771 | 152,667 | 62,771 | 97,463 |
Total allowance to gross loans (as a percent) | ' | ' | 0.77% | 0.67% | ' |
Construction | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Provisions for (reduction in) loan losses | ' | ' | 121 | ' | ' |
Balance, at the end of the period | 121 | ' | 121 | ' | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 121 | ' | 121 | ' | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 2,835 | 308 | 2,835 | 308 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 4.27% | 0.00% | ' |
Total gross loans | 2,835 | 308 | 2,835 | 308 | ' |
Total allowance to gross loans (as a percent) | ' | ' | 4.27% | 0.00% | ' |
Land | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 31 | 39 | ' |
Charge-offs | ' | ' | ' | -5 | ' |
Provisions for (reduction in) loan losses | ' | ' | 116 | -34 | ' |
Balance, at the end of the period | 147 | ' | 147 | ' | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 147 | ' | 147 | ' | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 7,371 | 11,005 | 7,371 | 11,005 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 1.99% | 0.00% | ' |
Total gross loans | 7,371 | 11,005 | 7,371 | 11,005 | 8,774 |
Total allowance to gross loans (as a percent) | ' | ' | 1.99% | 0.00% | ' |
Other loans | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 52 | 77 | ' |
Charge-offs | ' | ' | -7 | -2 | ' |
Recoveries | ' | ' | 141 | 25 | ' |
Provisions for (reduction in) loan losses | ' | ' | -138 | -80 | ' |
Balance, at the end of the period | 48 | 20 | 48 | 20 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 48 | 20 | 48 | 20 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 3,793 | 2,191 | 3,793 | 2,191 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 1.27% | 0.91% | ' |
Total gross loans | $3,793 | $2,191 | $3,793 | $2,191 | $1,193 |
Total allowance to gross loans (as a percent) | ' | ' | 1.27% | 0.91% | ' |
Subordinated_Debentures_Detail
Subordinated Debentures (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2004 | Sep. 30, 2013 | Mar. 31, 2004 |
PPBI Trust I | Subordinated Debentures | Subordinated Debentures | |
PPBI Trust I | |||
Subordinated Debentures | ' | ' | ' |
Debt issued | ' | ' | $10.30 |
Floating Rate Trust Preferred Securities issue amount | $10 | ' | ' |
Floating interest rate, base rate | ' | '3-month LIBOR | ' |
Floating interest rate, basis points added to base rate (as a percent) | ' | 2.75% | ' |
Effective rate (as a percent) | ' | 3.02% | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share | ' | ' | ' | ' |
Stock options excluded (in shares) | 13,744 | 233,630 | 53,310 | 358,151 |
Net Income | ' | ' | ' | ' |
Net income | $3,066 | $3,462 | $4,789 | $11,965 |
Basic income available to common stockholders | 3,066 | 3,462 | 4,789 | 11,965 |
Diluted income available to common stockholders plus assumed conversions | $3,066 | $3,462 | $4,789 | $11,965 |
Shares | ' | ' | ' | ' |
Basic income available to common stockholders (in shares) | 16,640,471 | 10,330,814 | 15,512,508 | 10,332,223 |
Effect of warrants and dilutive stock options (in shares) | 841,759 | 502,120 | 802,193 | 377,599 |
Diluted income available to common stockholders plus assumed conversions (in shares) | 17,482,230 | 10,832,934 | 16,314,701 | 10,709,822 |
Per Share Amount | ' | ' | ' | ' |
Basic income available to common stockholders (in dollars per share) | $0.19 | $0.34 | $0.31 | $1.16 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $0.18 | $0.32 | $0.29 | $1.12 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Fair Value of Financial Instruments | ' | ' | ' |
Cost to assume off-balance sheet commitments and standby letters of credit as a percentage of notional amount | 10.00% | ' | ' |
Assets: | ' | ' | ' |
Securities available for sale | $282,846 | $114,250 | $84,066 |
Accrued interest receivable | 5,629 | 3,933 | 4,126 |
Off-balance sheet commitments and standby letters of credit | ' | ' | ' |
Notional Amount | 333,592 | 152,057 | 131,450 |
Cost to Cede or Assume | 33,359 | 15,206 | 13,145 |
Level 1 | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 61,419 | 58,243 | 59,352 |
Securities available for sale | 187,961 | 54,099 | 81,042 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 10,827 | 12,191 | 11,247 |
Accrued interest receivable | 5,629 | 3,933 | 4,126 |
Liabilities: | ' | ' | ' |
Deposit accounts | 998,217 | 476,852 | 548,101 |
FHLB advances | 35,000 | 47,000 | 87,000 |
Accrued interest payable | 195 | 213 | 142 |
Level 2 | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available for sale | 94,885 | 59,190 | 2,072 |
Loans held for sale, net | 3,176 | 4,728 | 3,681 |
Liabilities: | ' | ' | ' |
Deposit accounts | 284,403 | 422,036 | 363,382 |
Other borrowings | 53,435 | 32,360 | 31,267 |
Subordinated debentures | 4,766 | 8,222 | 4,973 |
Off-balance sheet commitments and standby letters of credit | ' | ' | ' |
Cost to Cede or Assume | 33,359 | 15,206 | 13,145 |
Level 3 | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available for sale | ' | 961 | 952 |
Loans held for investment, net | 1,225,352 | 931,640 | 1,049,589 |
Carrying Amount | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 61,419 | 58,243 | 59,352 |
Securities available for sale | 282,846 | 114,250 | 84,066 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 10,827 | 12,191 | 11,247 |
Loans held for sale, net | 3,176 | 4,728 | 3,681 |
Loans held for investment, net | 1,130,975 | 851,715 | 974,213 |
Accrued interest receivable | 5,629 | 3,933 | 4,126 |
Liabilities: | ' | ' | ' |
Deposit accounts | 1,284,134 | 895,870 | 904,768 |
FHLB advances | 35,000 | 47,000 | 87,000 |
Other borrowings | 51,474 | 28,500 | 28,500 |
Subordinated debentures | 10,310 | 10,310 | 10,310 |
Accrued interest payable | 195 | 213 | 142 |
Estimated Fair Value | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 61,419 | 58,243 | 59,352 |
Securities available for sale | 282,846 | 114,250 | 84,066 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 10,827 | 12,191 | 11,247 |
Loans held for sale, net | 3,176 | 4,728 | 3,681 |
Loans held for investment, net | 1,225,352 | 931,640 | 1,049,589 |
Accrued interest receivable | 5,629 | 3,933 | 4,126 |
Liabilities: | ' | ' | ' |
Deposit accounts | 1,282,620 | 898,888 | 911,483 |
FHLB advances | 35,000 | 47,000 | 87,000 |
Other borrowings | 53,435 | 32,360 | 31,267 |
Subordinated debentures | 4,766 | 8,222 | 4,973 |
Accrued interest payable | $195 | $213 | $142 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | $282,846 | $84,066 | $114,250 |
Fair Value Measurement Using: Level 1 | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 187,961 | 81,042 | 54,099 |
Stock: | ' | ' | ' |
Total stock | 10,827 | 11,247 | 12,191 |
Fair Value Measurement Using: Level 2 | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 94,885 | 2,072 | 59,190 |
Fair Value Measurement Using: Level 3 | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | ' | 952 | 961 |
Recurring basis | Fair Value Measurement Using: Level 1 | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 187,961 | ' | 54,099 |
Stock: | ' | ' | ' |
FHLB stock | 7,532 | ' | 10,172 |
Federal Reserve Bank stock | 3,295 | ' | 2,019 |
Total stock | 10,827 | ' | 12,191 |
Estimated Fair Value | 198,788 | ' | 66,290 |
Recurring basis | Fair Value Measurement Using: Level 1 | U.S. Treasury | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 82 | ' | 160 |
Recurring basis | Fair Value Measurement Using: Level 1 | Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 187,879 | ' | 53,939 |
Recurring basis | Fair Value Measurement Using: Level 2 | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 94,885 | ' | 59,190 |
Stock: | ' | ' | ' |
Estimated Fair Value | 94,885 | ' | 59,190 |
Recurring basis | Fair Value Measurement Using: Level 2 | Municipal bonds | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 94,885 | ' | 57,097 |
Recurring basis | Fair Value Measurement Using: Level 2 | Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | ' | ' | 2,093 |
Recurring basis | Fair Value Measurement Using: Level 3 | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | ' | ' | 961 |
Stock: | ' | ' | ' |
Estimated Fair Value | ' | ' | 961 |
Recurring basis | Fair Value Measurement Using: Level 3 | Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | ' | ' | 961 |
Recurring basis | Securities at Fair Value | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 282,846 | ' | 114,250 |
Stock: | ' | ' | ' |
FHLB stock | 7,532 | ' | 10,172 |
Federal Reserve Bank stock | 3,295 | ' | 2,019 |
Total stock | 10,827 | ' | 12,191 |
Estimated Fair Value | 293,673 | ' | 126,441 |
Recurring basis | Securities at Fair Value | U.S. Treasury | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 82 | ' | 160 |
Recurring basis | Securities at Fair Value | Municipal bonds | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 94,885 | ' | 57,097 |
Recurring basis | Securities at Fair Value | Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | $187,879 | ' | $56,993 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of the beginning and ending balance of assets measured at fair value on a recurring basis using significant unobservable (Level 3) inputs | ' | ' |
Balance, beginning of period | $952 | $991 |
Total gains or (losses) realized/unrealized: Included in earnings (or changes in net assets) | 194 | -118 |
Total gains or (losses) realized/unrealized: Included in other comprehensive income | -140 | 290 |
Total gains or (losses) realized/unrealized: Purchases, issuances, and settlements | -1,077 | -202 |
Total gains or (losses) realized/unrealized: Transfer in and/or out of Level 3 | 71 | ' |
Balance, end of period | ' | $961 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Fair Value Disclosures | ' | ' | ' |
Impaired loans | $1,161 | $2,736 | $2,866 |
Other real estate owned | 1,186 | 2,258 | 5,521 |
Non-recurring basis | Fair Value Measurement Using: Level 3 | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Impaired loans | 1,161 | ' | 2,866 |
Other real estate owned | 1,186 | ' | 5,521 |
Total assets | 2,347 | ' | 8,387 |
Non-recurring basis | Assets at Fair Value | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Impaired loans | 1,161 | ' | 2,866 |
Other real estate owned | 1,186 | ' | 5,521 |
Total assets | $2,347 | ' | $8,387 |