Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 06, 2014 | |
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-14 | ' |
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 | ' | 16,894,216 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Cash and due from banks | $103,356 | $126,787 | $61,393 |
Federal funds sold | 275 | 26 | 26 |
Cash and cash equivalents | 103,631 | 126,813 | 61,419 |
Investment securities available for sale | 282,202 | 256,089 | 282,846 |
FHLB and other stock, at cost | 18,643 | 15,450 | 10,827 |
Loans held for sale, net | ' | 3,147 | 3,176 |
Loans held for investment | 1,548,004 | 1,240,123 | 1,138,969 |
Allowance for loan losses | -10,767 | -8,200 | -7,994 |
Loans held for investment, net | 1,537,237 | 1,231,923 | 1,130,975 |
Accrued interest receivable | 6,762 | 6,254 | 5,629 |
Other real estate owned | 752 | 1,186 | 1,186 |
Premises and equipment | 9,402 | 9,864 | 9,829 |
Deferred income taxes | 10,721 | 8,477 | 9,029 |
Bank owned life insurance | 26,642 | 24,051 | 23,862 |
Intangible assets | 5,867 | 6,628 | 6,881 |
Goodwill | 22,950 | 17,428 | 17,428 |
Other assets | 9,439 | 6,877 | 5,933 |
TOTAL ASSETS | 2,034,248 | 1,714,187 | 1,569,020 |
Deposit accounts: | ' | ' | ' |
Noninterest bearing | 425,166 | 366,755 | 363,606 |
Interest bearing | 1,118,300 | 939,531 | 920,528 |
Total deposits | 1,543,466 | 1,306,286 | 1,284,134 |
FHLB advances and other borrowings | 195,561 | 204,091 | 86,474 |
Subordinated debentures | 70,310 | 10,310 | 10,310 |
Accrued expenses and other liabilities | 27,054 | 18,274 | 16,948 |
TOTAL LIABILITIES | 1,836,391 | 1,538,961 | 1,397,866 |
STOCKHOLDERS' EQUITY: | ' | ' | ' |
Common stock, $.01 par value; 25,000,000 shares authorized;17,069,216 shares at September 30, 2014, 16,656,279 shares at December 31, 2013, and 16,641,991 shares at September 30, 2013 issued and outstanding | 171 | 166 | 166 |
Additional paid-in capital | 150,062 | 143,322 | 143,014 |
Retained earnings | 47,540 | 34,815 | 30,611 |
Accumulated other comprehensive income (loss), net of tax (benefit) of $59 at September 30, 2014, ($2,152) at December 31, 2013, and ($1,843) at September 30, 2013 | 84 | -3,077 | -2,637 |
TOTAL STOCKHOLDERS' EQUITY | 197,857 | 175,226 | 171,154 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,034,248 | $1,714,187 | $1,569,020 |
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, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
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 | 17,069,216 | 16,641,991 | 16,656,279 |
Common stock, shares outstanding | 17,069,216 | 16,641,991 | 16,656,279 |
Accumulated other comprehensive loss, tax (benefit) (in dollars) | $59 | ($1,843) | ($2,152) |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
INTEREST INCOME | ' | ' | ' | ' |
Loans | $19,550 | $14,420 | $54,057 | $41,504 |
Investment securities and other interest-earning assets | 1,484 | 1,954 | 4,230 | 4,041 |
Total interest income | 21,034 | 16,374 | 58,287 | 45,545 |
INTEREST EXPENSE | ' | ' | ' | ' |
Deposits | 1,317 | 1,045 | 3,589 | 3,097 |
FHLB advances and other borrowings | 294 | 244 | 792 | 722 |
Subordinated debentures | 403 | 77 | 553 | 230 |
Total interest expense | 2,014 | 1,366 | 4,934 | 4,049 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 19,020 | 15,008 | 53,353 | 41,496 |
PROVISION FOR LOAN LOSSES | 1,284 | 646 | 3,263 | 1,264 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 17,736 | 14,362 | 50,090 | 40,232 |
NONINTEREST INCOME | ' | ' | ' | ' |
Loan servicing fees | 547 | 237 | 1,685 | 881 |
Deposit fees | 412 | 485 | 1,329 | 1,382 |
Net gain from sales of loans | 1,775 | 982 | 3,621 | 1,927 |
Net gain from sales of investment securities | 363 | 305 | 523 | 1,373 |
Other-than-temporary impairment recovery (loss) on investment securities, net | 5 | 16 | 28 | -19 |
Other income | 1,365 | 296 | 1,804 | 932 |
Total noninterest income | 4,467 | 2,321 | 8,990 | 6,476 |
NONINTEREST EXPENSE | ' | ' | ' | ' |
Compensation and benefits | 7,490 | 5,948 | 20,866 | 16,732 |
Premises and occupancy | 1,723 | 1,600 | 4,877 | 4,222 |
Data processing and communications | 420 | 824 | 2,036 | 2,214 |
Other real estate owned operations, net | 11 | -1 | 65 | 610 |
FDIC insurance premiums | 257 | 201 | 760 | 537 |
Legal, audit and professional expense | 625 | 679 | 1,603 | 1,523 |
Marketing expense | 318 | 307 | 736 | 777 |
Office and postage expense | 441 | 375 | 1,155 | 960 |
Loan expense | 258 | 282 | 633 | 714 |
Deposit expense | 747 | 497 | 2,255 | 1,172 |
Merger related expense | ' | ' | 626 | 6,723 |
Other expense | 1,053 | 1,059 | 2,913 | 2,622 |
Total noninterest expense | 13,343 | 11,771 | 38,525 | 38,806 |
NET INCOME BEFORE INCOME TAX | 8,860 | 4,912 | 20,555 | 7,902 |
INCOME TAX | 3,410 | 1,846 | 7,830 | 3,113 |
NET INCOME | $5,450 | $3,066 | $12,725 | $4,789 |
EARNINGS PER SHARE | ' | ' | ' | ' |
Basic (in dollars per share) | $0.32 | $0.19 | $0.75 | $0.31 |
Diluted (in dollars per share) | $0.31 | $0.18 | $0.73 | $0.29 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ' | ' | ' | ' |
Basic (in shares) | 17,069,216 | 16,640,471 | 17,078,945 | 15,512,508 |
Diluted (in shares) | 17,342,882 | 17,482,230 | 17,385,835 | 16,314,701 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $5,450 | $3,066 | $12,725 | $4,789 |
Other comprehensive income (loss), net of tax (benefit): | ' | ' | ' | ' |
Unrealized holding gains (losses) on securities arising during the period, net of income taxes (benefits) | 320 | -799 | 3,469 | -2,933 |
Reclassification adjustment for net gain on sale of securities included in net income, net of income taxes | -214 | -179 | -308 | -809 |
Net unrealized gain (loss) on securities, net of income taxes | 106 | -978 | 3,161 | -3,742 |
Comprehensive income | $5,556 | $2,088 | $15,886 | $1,047 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Tax effect on unrealized gains (losses) on securities arising during the period | $75 | ($683) | $2,200 | ($2,600) |
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | $149 | $126 | $215 | $564 |
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, 2012 | $134,517 | $137 | $107,453 | $25,822 | $1,105 |
Balance (in shares) at Dec. 31, 2012 | ' | 13,661,648 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 4,789 | ' | ' | 4,789 | ' |
Other comprehensive income | -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 | ' | ' | ' |
Balance at Dec. 31, 2013 | 175,226 | 166 | 143,322 | 34,815 | -3,077 |
Balance (in shares) at Dec. 31, 2013 | 16,656,279 | 16,656,279 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 12,725 | ' | ' | 12,725 | ' |
Other comprehensive income | 3,161 | ' | ' | ' | 3,161 |
Share-based compensation expense | 377 | ' | 377 | ' | ' |
Common stock repurchased and retired | -2,757 | -2 | -2,755 | ' | ' |
Common stock repurchased and retired (in shares) | ' | -262,897 | ' | ' | ' |
Common stock issued | 9,012 | 6 | 9,006 | ' | ' |
Common stock issued (in shares) | ' | 562,469 | ' | ' | ' |
Stock options exercised | 113 | 1 | 112 | ' | ' |
Stock options exercised (in shares) | ' | 113,365 | ' | ' | ' |
Balance at Sep. 30, 2014 | $197,857 | $171 | $150,062 | $47,540 | $84 |
Balance (in shares) at Sep. 30, 2014 | 17,069,216 | 17,069,216 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $12,725 | $4,789 |
Adjustments to net income: | ' | ' |
Depreciation and amortization expense | 1,636 | 1,423 |
Provision for loan losses | 3,263 | 1,264 |
Share-based compensation expense | 377 | 680 |
Loss on sale and disposal of premises and equipment | 23 | 2 |
Loss on sale of other real estate owned | 17 | 226 |
Write down of other real estate owned | ' | 354 |
Amortization of premium/discounts on securities held for sale, net | 1,958 | 2,319 |
Amortization of loan mark-to-market discount from acquisitions | -1,632 | -2,032 |
Loss from fair market value adjustment to loans held for sale | 180 | ' |
Gain on sale of investment securities available for sale | -523 | -1,373 |
Other-than-temporary impairment loss (recovery) on investment securities, net | -28 | 19 |
Gain on sale of loans held for investment | -3,621 | -1,927 |
Recoveries on loans | 87 | 344 |
Principal payments from loans held for sale | 31 | 505 |
Deferred income tax provision | -2,244 | -2,142 |
Change in accrued expenses and other liabilities, net | 2,310 | 5,562 |
Income from bank owned life insurance, net | -591 | -470 |
Change in accrued interest receivable and other assets, net | -3,070 | 1,196 |
Net cash provided by operating activities | 10,898 | 10,739 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Proceeds from sale and principal payments on loans held for investment | 229,887 | 131,619 |
Net change in undisbursed loan funds | 43,436 | 246,814 |
Purchase and origination of loans held for investment | -495,070 | -463,706 |
Proceeds from sale of other real estate owned | 777 | 1,488 |
Principal payments on securities available for sale | 21,535 | 27,528 |
Purchase of securities available for sale | -129,636 | -98,799 |
Proceeds from sale or maturity of securities available for sale | 91,907 | 212,314 |
Investment in bank own life insurance | -2,000 | ' |
Purchases of premises and equipment | -1,123 | -3,010 |
Purchase of Federal Reserve Bank stock | -1,520 | -1,276 |
Redemption (purchase) of FHLB stock | -1,673 | 2,349 |
Cash acquired (disbursed) in acquisitions, net | -7,793 | 138,751 |
Net cash provided by (used in) investing activities | -251,273 | 194,072 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Net increase (decrease) in deposit accounts | 237,180 | -161,359 |
Proceeds from issuance of subordinated debt | 58,804 | ' |
Repayment of FHLB advances and other borrowings, net | -76,147 | -45,931 |
Proceeds from issuance of common stock, net of issuance cost | ' | 4,560 |
Proceeds from exercise of stock options | 113 | 27 |
Repurchase of common stock | -2,757 | -41 |
Net cash provided by (used in) financing activities | 217,193 | -202,744 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -23,182 | 2,067 |
CASH AND CASH EQUIVALENTS, beginning of period | 126,813 | 59,352 |
CASH AND CASH EQUIVALENTS, end of period | 103,631 | 61,419 |
SUPPLEMENTAL CASH FLOW DISCLOSURES | ' | ' |
Interest paid | 4,615 | 4,012 |
Income taxes paid | 11,450 | 6,825 |
Assets acquired (liabilities assumed and capital created) in acquisitions (See Note 4): | ' | ' |
Investment securities | ' | 347,196 |
FHLB and TIB Stock | ' | 1,765 |
Loans | 78,833 | 68,815 |
Core deposit intangible | ' | 4,766 |
Other real estate owned | ' | 752 |
Goodwill | 5,522 | 18,234 |
Fixed assets | 74 | 1,446 |
Other assets | 702 | 12,468 |
Deposits | ' | -540,725 |
Other borrowings | -67,617 | -16,905 |
Other liabilities | -709 | -7,199 |
Additional paid-in capital | -9,012 | -29,364 |
NONCASH INVESTING ACTIVITIES DURING THE PERIOD | ' | ' |
Transfers from loans to other real estate owned | 360 | 244 |
Investment securities available for sale purchased and not settled | 5,982 | ' |
Loans held for sale transfer to loans held for investment | $2,936 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
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, 2014, December 31, 2013, and September 30, 2013, the results of its operations and comprehensive income for the three and nine months ended September 30, 2014 and 2013 and the changes in stockholders’ equity and cash flows for the nine months ended September 30, 2014 and 2013. Operating results or comprehensive income for the three and nine months ended September 30, 2014 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, 2014. | |
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, 2013 (the “2013 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, 2014 | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | ' |
Note 2 — Recently Issued Accounting Pronouncements | |
Accounting Standards Adopted in 2014 | |
In July 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11,”Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The provisions of ASU No. 2013-11 require an entity to present an unrecognized tax benefit, or portion thereof, in the statement of financial position as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward, with certain exceptions related to availability. The Company adopted the provisions of ASU No. 2013-11 effective January 1, 2014. The adoption of ASU No. 2013-11 had no impact on the Company’s Consolidated Financial Statements. | |
Accounting Standards Pending Adoption | |
In January 2014, the FASB issued ASU No. 2014-01,”Accounting for Investments in Qualified Affordable Housing Projects.” ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. This new guidance also requires new disclosures for all investors in these projects. ASU No. 2014-01 is effective for interim and annual reporting periods beginning after December 15, 2014. Upon adoption, the guidance must be applied retrospectively to all periods presented. However, entities that use the effective yield method to account for investments in these projects before adoption may continue to do so for these pre-existing investments. The Company currently accounts for such investments using the effective yield method and plans to continue to do so for these pre-existing investments after adopting ASU No. 2014-01 on January 1, 2015. The Company expects investments made after January 1, 2015 to meet the criteria required for the proportional amortization method and plans to make such an accounting policy election. The adoption of ASU No. 2014-01 is not expected to have a material impact on the Company’s Consolidated Financial Statements. | |
In January 2014, the FASB issued ASU No. 2014-04,”Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
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 6 to 10 years. | |
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of stock-based compensation awards, the fair values of financial instruments and the status of contingencies are particularly subject to change. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Acquisitions | ' | ||||||||||
Acquisitions | ' | ||||||||||
Note 4 — Acquisitions | |||||||||||
The Company accounted for the following 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 in these acquisitions 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. | |||||||||||
Infinity Franchise Holdings Acquisition | |||||||||||
On January 30, 2014, the Company completed its acquisition of Infinity Franchise Holdings, LLC (“Infinity Holdings”) and its wholly owned operating subsidiary Infinity Franchise Capital, LLC (“IFC” and together with Infinity Holdings, “IFH”), a national lender to franchisees in the quick service restaurant (“QSR”) industry, and other direct and indirect subsidiaries utilized in its business. The value of the total consideration paid for the IFH acquisition was $17.4 million, which consisted of $8.3 million paid in cash and the issuance of 562,469 shares of the Corporation’s stock, which was valued at $16.02 per share as measured by the 10-day average closing price immediately prior to closing of the transaction. | |||||||||||
The acquisition of IFH is expected to further diversify our loan portfolio with commercial and industrial and owner-occupied commercial real estate loans, to deploy excess liquidity into higher yielding assets, to positively impact our net interest margin and to further leverage our strong capital base. The QSR franchisee lending business is a niche market that we believe provides attractive growth opportunities for the Company in the future. IFH had no delinquent loans or adversely classified assets as of the acquisition date; and the acquisition is expected to be accretive to our 2014 earnings per share. | |||||||||||
Goodwill in the amount of $5.5 million was recognized in the IFH 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 IFH as of January 30, 2014 and the provisional fair value adjustments and amounts recorded by the Company in 2014 under the acquisition method of accounting: | |||||||||||
IFH | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 555 | $ | — | $ | 555 | |||||
Loans, gross | 78,833 | — | 78,833 | ||||||||
Deferred loan costs | 1,082 | (1,082 | ) | — | |||||||
Allowance for loan losses | (268 | ) | 268 | — | |||||||
Other assets | 776 | — | 776 | ||||||||
Total assets acquired | $ | 80,978 | $ | (814 | ) | $ | 80,164 | ||||
LIABILITIES ASSUMED | |||||||||||
Bank loan | $ | 67,617 | $ | — | $ | 67,617 | |||||
Accrued compensation | 495 | — | 495 | ||||||||
Other liabilities | 214 | — | 214 | ||||||||
Total liabilities assumed | 68,326 | — | 68,326 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 12,652 | $ | (814 | ) | 11,838 | |||||
Consideration paid | 17,360 | ||||||||||
Goodwill recognized | $ | 5,522 | |||||||||
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 $5.6 million was recognized in the SDTB acquisition. 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 | (223 | ) | 42,722 | |||||||
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 | $ | 3,471 | $ | 211,223 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 183,901 | $ | 6 | $ | 183,907 | |||||
Deferred tax liability (asset) | (333 | ) | 1,507 | 1,174 | |||||||
Other liabilities | 1,823 | (729 | ) | 1,094 | |||||||
Total liabilities assumed | 185,391 | 784 | 186,175 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 22,361 | $ | 2,687 | 25,048 | ||||||
Consideration paid | 30,622 | ||||||||||
Goodwill recognized | $ | 5,574 | |||||||||
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 the FAB acquisition. 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, SDTB or IFH. For loans acquired from FAB, SDTB and IFH, 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 | |||||||||||
FAB | SDTB | IFH | |||||||||
(dollars in thousands) | |||||||||||
Contractual amounts due | $ | 32,107 | $ | 47,251 | $ | 98,320 | |||||
Cash flows not expected to be collected | — | — | — | ||||||||
Expected cash flows | 32,107 | 47,251 | 98,320 | ||||||||
Interest component of expected cash flows | 5,685 | 4,529 | 19,487 | ||||||||
Fair value of acquired loans | $ | 26,422 | $ | 42,722 | $ | 78,833 | |||||
In accordance with generally accepted accounting principles, there was no carryover of the allowance for loan losses that had been previously recorded by FAB, SDTB or IFH. | |||||||||||
The operating results of the Company for the nine months ending September 30, 2014 include the operating results of FAB, SDTB and IFH since their respective acquisition dates. The following table presents the net interest and other income, net income and earnings per share as if the acquisition of IFH was effective as of January 1, 2014 and as if the acquisitions of FAB and SDTB were effective as of January 1, 2013. 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, | |||||||||||
2014 | 2013 | ||||||||||
Net interest and other income | $ | 62,378 | $ | 53,232 | |||||||
Net income | $ | 12,344 | $ | 5,027 | |||||||
Basic earnings per share | $ | 0.72 | $ | 0.27 | |||||||
Diluted earnings per share | $ | 0.71 | $ | 0.26 |
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
Note 5 — Investment Securities | ||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of securities were as follows: | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 97,358 | $ | 1,495 | $ | (268 | ) | $ | 98,585 | |||||||||||||||||||||||
Mortgage-backed securities | 184,701 | 180 | (1,264 | ) | 183,617 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 282,059 | $ | 1,675 | $ | (1,532 | ) | $ | 282,202 | |||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 73 | $ | 8 | $ | — | $ | 81 | ||||||||||||||||||||||||
Municipal bonds | 95,388 | 589 | (1,850 | ) | 94,127 | |||||||||||||||||||||||||||
Mortgage-backed securities | 165,857 | 12 | (3,988 | ) | 161,881 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 261,318 | $ | 609 | $ | (5,838 | ) | $ | 256,089 | |||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
At September 30, 2014, the Company had $9.2 million in Federal Home Loan Bank (“FHLB”) stock, $5.4 million in Federal Reserve Bank (“FRB”) stock, and $4.1 million in other stock, all carried at cost. During the nine months ended September 30, 2014, the FHLB has repurchased $2.2 million of the Company’s excess FHLB stock through its stock repurchase program. | ||||||||||||||||||||||||||||||||
At September 30, 2014, mortgage-backed securities (“MBS”) with an estimated par value of $63.4 million and a fair value of $65.5 million were pledged as collateral for the Bank’s three reverse repurchase agreements which totaled $28.5 million and HOA reverse repurchase agreements which totaled $16.1 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, 2014 | ||||||||||||||||||||||||||||||||
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 | 29 | $ | 16,804 | $ | (183 | ) | 26 | $ | 10,459 | $ | (85 | ) | 55 | $ | 27,263 | $ | (268 | ) | ||||||||||||||
Mortgage-backed securities | 22 | 85,248 | (256 | ) | 9 | 42,516 | (1,008 | ) | 31 | 127,764 | (1,264 | ) | ||||||||||||||||||||
Total | 51 | $ | 102,052 | $ | (439 | ) | 35 | $ | 52,975 | $ | (1,093 | ) | 86 | $ | 155,027 | $ | (1,532 | ) | ||||||||||||||
December 31, 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 | 133 | $ | 61,524 | $ | (1,850 | ) | — | $ | — | $ | — | 133 | $ | 61,524 | $ | (1,850 | ) | |||||||||||||||
Mortgage-backed securities | 45 | 140,704 | (3,075 | ) | 1 | 12,607 | (913 | ) | 46 | 153,311 | (3,988 | ) | ||||||||||||||||||||
Total | 178 | $ | 202,228 | $ | (4,925 | ) | 1 | $ | 12,607 | $ | (913 | ) | 179 | $ | 214,835 | $ | (5,838 | ) | ||||||||||||||
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 | ) | ||||||||||||||
The amortized cost and estimated fair value of investment securities available for sale at September 30, 2014, 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 | |||||||||||||||||||||||
Investment securities available for sale: | Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | — | $ | — | $ | 12,828 | $ | 12,877 | $ | 41,817 | $ | 42,379 | $ | 42,713 | $ | 43,329 | $ | 97,358 | $ | 98,585 | ||||||||||||
Mortgage-backed securities | — | — | — | — | 30,477 | 30,394 | 154,224 | 153,223 | 184,701 | 183,617 | ||||||||||||||||||||||
Total investment securities available for sale | — | — | 12,828 | 12,877 | 72,294 | 72,773 | 196,937 | 196,552 | 282,059 | 282,202 | ||||||||||||||||||||||
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, 2014, the Company had accumulated other comprehensive income of $143,000, or $84,000 net of tax, compared to accumulated other comprehensive loss of $5.2 | ||||||||||||||||||||||||||||||||
million, or $3.1 million net of tax, at December 31, 2013. |
Loans_Held_for_Investment
Loans Held for Investment | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
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, 2014 | December 31, 2013 | September 30, 2013 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 360,700 | $ | 187,035 | $ | 173,720 | |||||||||||||||||
Commercial owner occupied (1) | 237,996 | 221,089 | 222,162 | ||||||||||||||||||||
SBA | 20,482 | 10,659 | 6,455 | ||||||||||||||||||||
Warehouse facilities | 108,093 | 87,517 | 49,104 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 355,984 | 333,544 | 304,979 | ||||||||||||||||||||
Multi-family | 262,588 | 233,689 | 218,929 | ||||||||||||||||||||
One-to-four family (2) | 125,326 | 145,235 | 152,667 | ||||||||||||||||||||
Construction | 67,118 | 13,040 | 2,835 | ||||||||||||||||||||
Land | 6,103 | 7,605 | 7,371 | ||||||||||||||||||||
Other loans | 3,521 | 3,839 | 3,793 | ||||||||||||||||||||
Total gross loans (3) | 1,547,911 | 1,243,252 | 1,142,015 | ||||||||||||||||||||
Less loans held for sale, net | — | 3,147 | 3,176 | ||||||||||||||||||||
Total gross loans held for investment | 1,547,911 | 1,240,105 | 1,138,839 | ||||||||||||||||||||
Deferred loan origination costs/(fees) and premiums/(discounts), net | 93 | 18 | 130 | ||||||||||||||||||||
Allowance for loan losses | (10,767 | ) | (8,200 | ) | (7,994 | ) | |||||||||||||||||
Loans held for investment, net | $ | 1,537,237 | $ | 1,231,923 | $ | 1,130,975 | |||||||||||||||||
(1) Majority secured by real estate. | |||||||||||||||||||||||
(2) Includes second trust deeds. | |||||||||||||||||||||||
(3) Total gross loans for September 30, 2014 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank (“Canyon National”) loans of $1.5 million, on Palm Desert National Bank (“Palm Desert National”) loans of $1.7 million, and on SDTB loans of $145,000 and (ii) the mark-to-market premium on FAB loans of $31,000. | |||||||||||||||||||||||
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 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 the Bank’s 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 $63.2 million for secured loans and $37.9 million for unsecured loans at September 30, 2014. At September 30, 2014, the Bank’s largest aggregate outstanding balance of loans to one borrower was $34.2 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, 2014 | |||||||||||||||||||||||
Canyon | Palm Desert | Total | |||||||||||||||||||||
National | National | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 92 | $ | — | $ | 92 | |||||||||||||||||
Commercial owner occupied | 555 | — | 555 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 971 | — | 971 | ||||||||||||||||||||
One-to-four family | — | 8 | 8 | ||||||||||||||||||||
Total purchase credit impaired | $ | 1,618 | $ | 8 | $ | 1,626 | |||||||||||||||||
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, 2014, the Company had $1.6 million of purchased credit impaired loans, none of which were placed on nonaccrual status. | |||||||||||||||||||||||
The following table summarizes the accretable yield on the purchased credit impaired for the nine months ended September 30, 2014: | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||
Canyon National | Palm Desert National | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at the beginning of period | $ | 1,623 | $ | 53 | $ | 1,676 | |||||||||||||||||
Accretion | (192 | ) | (1 | ) | (193 | ) | |||||||||||||||||
Disposals and other | (17 | ) | — | (17 | ) | ||||||||||||||||||
Change in accretable yield | — | — | — | ||||||||||||||||||||
Balance at the end of period | $ | 1,414 | $ | 52 | $ | 1,466 | |||||||||||||||||
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 | |||||||||||||||||||||
September 30, 2014 | Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 15 | $ | — | |||||||||
Commercial owner occupied | 441 | 398 | — | 398 | — | 555 | 41 | ||||||||||||||||
SBA | — | — | — | — | — | 6 | — | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,221 | 883 | — | 883 | — | 924 | 65 | ||||||||||||||||
One-to-four family | 649 | 526 | — | 526 | — | 504 | 18 | ||||||||||||||||
Totals | $ | 2,311 | $ | 1,807 | $ | — | $ | 1,807 | $ | — | $ | 2,004 | $ | 124 | |||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
December 31, 2013 | Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 255 | $ | 17 | |||||||||
Commercial owner occupied | 872 | 747 | — | 747 | — | 177 | 66 | ||||||||||||||||
SBA | 246 | 14 | — | 14 | — | 70 | 28 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,202 | 983 | 28 | 955 | 1 | 984 | 68 | ||||||||||||||||
Multi-family | — | — | — | — | — | 108 | 2 | ||||||||||||||||
One-to-four family | 746 | 683 | 278 | 405 | 104 | 743 | 44 | ||||||||||||||||
Totals | $ | 3,066 | $ | 2,427 | $ | 306 | $ | 2,121 | $ | 105 | $ | 2,337 | $ | 225 | |||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
September 30, 2013 | Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
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 | |||||||||
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 restructuring (“TDR”). 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, 2014 | December 31, 2013 | September 30, 2013 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Nonaccruing loans | $ | 1,624 | $ | 2,239 | $ | 972 | |||||||||||||||||
Accruing loans | 183 | 188 | 189 | ||||||||||||||||||||
Total impaired loans | $ | 1,807 | $ | 2,427 | $ | 1,161 | |||||||||||||||||
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 $1.6 million at September 30, 2014, $2.2 million at December 31, 2013, and $972,000 at September 30, 2013. The Company had no loans 90 days or more past due and still accruing at September 30, 2014, December 31, 2013 or September 30, 2013. | |||||||||||||||||||||||
The Company had no TDRs during the quarter ended September 30, 2014 and had one immaterial TDR outstanding related to a U.S. Small Business Administration (“SBA”) loan. | |||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||
As of September 30, 2014, the Company’s loan portfolio was collateralized by various forms of real estate and business assets located principally in 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 a significant deterioration in the California real estate market or 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 | ||||||||||||||||||||||
September 30, 2014 | Pass | Mention | Substandard | Loans | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 358,922 | $ | — | $ | 1,778 | $ | 360,700 | |||||||||||||||
Commercial owner occupied | 228,154 | 387 | 9,455 | 237,996 | |||||||||||||||||||
SBA | 20,482 | — | — | 20,482 | |||||||||||||||||||
Warehouse facilities | 108,093 | — | — | 108,093 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 351,614 | — | 4,370 | 355,984 | |||||||||||||||||||
Multi-family | 261,574 | 504 | 510 | 262,588 | |||||||||||||||||||
One-to-four family | 124,383 | — | 943 | 125,326 | |||||||||||||||||||
Construction | 67,118 | — | — | 67,118 | |||||||||||||||||||
Land | 6,103 | — | — | 6,103 | |||||||||||||||||||
Other loans | 3,521 | — | — | 3,521 | |||||||||||||||||||
Totals | $ | 1,529,964 | $ | 891 | $ | 17,056 | $ | 1,547,911 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
December 31, 2013 | Pass | Mention | Substandard | Loans | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 184,247 | $ | 12 | $ | 2,776 | $ | 187,035 | |||||||||||||||
Commercial owner occupied | 207,872 | 1,217 | 12,000 | 221,089 | |||||||||||||||||||
SBA | 10,659 | — | — | 10,659 | |||||||||||||||||||
Warehouse facilities | 87,517 | — | — | 87,517 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 329,538 | 352 | 3,654 | 333,544 | |||||||||||||||||||
Multi-family | 232,661 | 511 | 517 | 233,689 | |||||||||||||||||||
One-to-four family | 144,152 | — | 1,083 | 145,235 | |||||||||||||||||||
Construction | 13,040 | — | — | 13,040 | |||||||||||||||||||
Land | 7,605 | — | — | 7,605 | |||||||||||||||||||
Other loans | 3,834 | — | 5 | 3,839 | |||||||||||||||||||
Totals | $ | 1,221,125 | $ | 2,092 | $ | 20,035 | $ | 1,243,252 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
September 30, 2013 | Pass | Mention | Substandard | Loans | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
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 | |||||||||||||||
The following tables set forth delinquencies in the Company’s loan portfolio at the dates indicated: | |||||||||||||||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
September 30, 2014 | Current | 30-59 | 60-89 | 90+ | Total | Accruing | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 360,700 | $ | — | $ | — | $ | — | $ | 360,700 | $ | — | |||||||||||
Commercial owner occupied | 237,996 | — | — | — | 237,996 | 528 | |||||||||||||||||
SBA | 20,439 | — | 43 | — | 20,482 | — | |||||||||||||||||
Warehouse facilities | 108,093 | — | — | — | 108,093 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 355,984 | — | — | — | 355,984 | 882 | |||||||||||||||||
Multi-family | 262,588 | — | — | — | 262,588 | — | |||||||||||||||||
One-to-four family | 124,963 | 20 | — | 343 | 125,326 | 372 | |||||||||||||||||
Construction | 67,118 | — | — | — | 67,118 | — | |||||||||||||||||
Land | 6,103 | — | — | — | 6,103 | — | |||||||||||||||||
Other loans | 3,521 | — | — | — | 3,521 | — | |||||||||||||||||
Totals | $ | 1,547,505 | $ | 20 | $ | 43 | $ | 343 | $ | 1,547,911 | $ | 1,782 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
December 31, 2013 | Current | 30-59 | 60-89 | 90+ | Total | Accruing | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 187,035 | $ | — | $ | — | $ | — | $ | 187,035 | $ | — | |||||||||||
Commercial owner occupied | 219,875 | 768 | — | 446 | 221,089 | 747 | |||||||||||||||||
SBA | 10,645 | — | — | 14 | 10,659 | 14 | |||||||||||||||||
Warehouse facilities | 87,517 | — | — | — | 87,517 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 332,984 | — | — | 560 | 333,544 | 983 | |||||||||||||||||
Multi-family | 233,689 | — | — | — | 233,689 | — | |||||||||||||||||
One-to-four family | 145,041 | 71 | — | 123 | 145,235 | 507 | |||||||||||||||||
Construction | 13,040 | — | — | — | 13,040 | — | |||||||||||||||||
Land | 7,605 | — | — | — | 7,605 | — | |||||||||||||||||
Other loans | 3,709 | 130 | — | — | 3,839 | — | |||||||||||||||||
Totals | $ | 1,241,140 | $ | 969 | $ | — | $ | 1,143 | $ | 1,243,252 | $ | 2,251 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
September 30, 2013 | Current | 30-59 | 60-89 | 90+ | Total | Accruing | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
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 |
Allowance_for_Loan_Losses
Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||
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, 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 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 Federal Deposit Insurance (“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, 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 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 three months ended for the periods indicated: | |||||||||||||||||||||||||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to-four | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | non-owner | family | family | loans | ||||||||||||||||||||||||||||||
occupied | occupied | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 1,968 | $ | 1,818 | $ | 151 | $ | 392 | $ | 1,658 | $ | 817 | $ | 1,099 | $ | 136 | $ | 127 | $ | 34 | $ | 8,200 | |||||||||||||
Charge-offs | (223 | ) | — | — | — | (365 | ) | — | (195 | ) | — | — | — | (783 | ) | ||||||||||||||||||||
Recoveries | 33 | — | 4 | — | — | — | 32 | — | — | 18 | 87 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 1,597 | 38 | 290 | 102 | 608 | 194 | (121 | ) | 639 | (55 | ) | (29 | ) | 3,263 | |||||||||||||||||||||
Balance, September 30, 2014 | $ | 3,375 | $ | 1,856 | $ | 445 | $ | 494 | $ | 1,901 | $ | 1,011 | $ | 815 | $ | 775 | $ | 72 | $ | 23 | $ | 10,767 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
General portfolio allocation | 3,375 | 1,856 | 445 | 494 | 1,901 | 1,011 | 815 | 775 | 72 | 23 | 10,767 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | — | 398 | — | — | 883 | — | 526 | — | — | — | 1,807 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 360,700 | $ | 237,598 | $ | 20,482 | $ | 108,093 | $ | 355,101 | $ | 262,588 | $ | 124,800 | $ | 67,118 | $ | 6,103 | $ | 3,521 | $ | 1,546,104 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 0.94 | % | 0.78 | % | 2.17 | % | 0.46 | % | 0.54 | % | 0.39 | % | 0.65 | % | 1.15 | % | 1.18 | % | 0.65 | % | 0.7 | % | |||||||||||||
Total gross loans | $ | 360,700 | $ | 237,996 | $ | 20,482 | $ | 108,093 | $ | 355,984 | $ | 262,588 | $ | 125,326 | $ | 67,118 | $ | 6,103 | $ | 3,521 | $ | 1,547,911 | |||||||||||||
Total allowance to gross loans | 0.94 | % | 0.78 | % | 2.17 | % | 0.46 | % | 0.53 | % | 0.39 | % | 0.65 | % | 1.15 | % | 1.18 | % | 0.65 | % | 0.7 | % | |||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to-four | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | non-owner | family | 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 | % |
Subordinated_Debentures
Subordinated Debentures | 9 Months Ended |
Sep. 30, 2014 | |
Subordinated Debentures | ' |
Subordinated Debentures | ' |
Note 8 — Subordinated Debentures | |
In August 2014, the Corporation issued $60 million in aggregate principal amount of 5.75% Subordinated Notes Due 2024 (the “Notes”) in a private placement transaction to institutional accredited investors (the “Private Placement”). The Corporation contributed $40 million of net proceeds from the Private Placement to the Bank to support general corporate purposes. The Notes will bear interest at an annual fixed rate of 5.75%, with the first interest payment on the Notes occurring on March 3, 2015, and interest will be paid semiannually each March 3 and September 3 until September 3, 2024. | |
In connection with the Private Placement, the Corporation obtained ratings from Kroll Bond Rating Agency (“KBRA”). KBRA assigned investment grade ratings of BBB+ and BBB for the Corporation’s senior secured debt and subordinated debt, respectively, and a senior deposit rating of A- for the Bank. | |
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 2.98% per annum as of September 30, 2014. | |
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, 2014 | ||||||||||||||||||
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, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Stock options excluded | 660,109 | 13,744 | 615,587 | 53,310 | ||||||||||||||
The following tables set forth the Company’s unaudited earnings per share calculations for the periods indicated: | ||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 5,450 | $ | 3,066 | ||||||||||||||
Basic income available to common stockholders | 5,450 | 17,069,216 | $ | 0.32 | 3,066 | 16,640,471 | $ | 0.19 | ||||||||||
Effect of dilutive stock options | — | 273,666 | — | 841,759 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 5,450 | 17,342,882 | $ | 0.31 | $ | 3,066 | 17,482,230 | $ | 0.18 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 12,725 | $ | 4,789 | ||||||||||||||
Basic income available to common stockholders | 12,725 | 17,078,945 | $ | 0.75 | 4,789 | 15,512,508 | $ | 0.31 | ||||||||||
Effect of dilutive stock options | — | 306,890 | — | 802,193 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 12,725 | 17,385,835 | $ | 0.73 | $ | 4,789 | 16,314,701 | $ | 0.29 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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, 2014, December 31, 2013 and September 30, 2013: | |||||||||||||||||
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 classifies securities that reflect other-than-temporary impairments (“OTTI”) based on a discounted cash flow of the security or a determination of fair value that requires significant management judgment or consideration. | |||||||||||||||||
FHLB, FRB, Other 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— The fair value of loans, other than loans on nonaccrual status, was estimated by discounting the remaining contractual cash flows using the estimated current rate at which similar loans would be made to borrowers with similar credit risk characteristics and for the same remaining maturities, reduced by deferred net loan origination fees and the allocable portion of the allowance for loan losses. Accordingly, in determining the estimated current rate for discounting purposes, no adjustment has been made for any change in borrowers’ credit risks since the origination of such loans. Rather, the allocable portion of the allowance for loan losses is considered to provide for such changes in estimating fair value. As a result, this fair value is not necessarily the value which would be derived using an exit price. These loans are included within Level 3 of the fair value hierarchy. 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 is 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, 2014 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 103,631 | $ | 103,631 | $ | — | $ | — | $ | 103,631 | |||||||
Securities available for sale | 282,202 | — | 282,202 | — | 282,202 | ||||||||||||
Federal Reserve Bank, TIB and FHLB stock, at cost | 18,643 | 18,643 | — | — | 18,643 | ||||||||||||
Loans held for investment, net | 1,537,237 | — | — | 1,521,466 | 1,521,466 | ||||||||||||
Accrued interest receivable | 6,762 | 6,762 | — | — | 6,762 | ||||||||||||
Other real estate owned | 752 | — | — | 752 | 752 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,543,466 | 1,157,972 | 371,574 | — | 1,529,546 | ||||||||||||
FHLB advances | 150,000 | 149,999 | — | — | 149,999 | ||||||||||||
Other borrowings | 45,561 | — | 46,095 | — | 46,095 | ||||||||||||
Subordinated debentures | 70,310 | — | 34,142 | — | 34,142 | ||||||||||||
Accrued interest payable | 177 | 177 | — | — | 177 | ||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 328,708 | $ | — | $ | 32,871 | $ | — | $ | 32,871 | |||||||
At December 31, 2013 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 126,813 | $ | 126,813 | $ | — | $ | — | $ | 126,813 | |||||||
Securities available for sale | 256,089 | — | 256,089 | — | 256,089 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 15,450 | 15,450 | — | — | 15,450 | ||||||||||||
Loans held for sale, net | 3,147 | — | 3,147 | — | 3,147 | ||||||||||||
Loans held for investment, net | 1,231,923 | — | — | 1,230,316 | 1,230,316 | ||||||||||||
Accrued interest receivable | 6,254 | 6,254 | — | — | 6,254 | ||||||||||||
Other real estate owned | 1,186 | — | — | 1,186 | 1,186 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,306,286 | 991,630 | 301,007 | — | 1,292,637 | ||||||||||||
FHLB advances | 156,000 | 156,000 | — | — | 156,000 | ||||||||||||
Other borrowings | 48,091 | — | 49,058 | — | 49,058 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,696 | — | 4,696 | ||||||||||||
Accrued interest payable | 166 | 166 | — | — | 166 | ||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 337,181 | $ | — | $ | 33,718 | $ | — | $ | 33,718 | |||||||
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 | — | 282,846 | — | 282,846 | ||||||||||||
Federal Reserve Bank 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 | ||||||||||||
Other real estate owned | 1,186 | — | — | 1,186 | 1,186 | ||||||||||||
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 | $ | 335,592 | $ | — | $ | 33,559 | $ | — | $ | 33,559 | |||||||
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, 2014, 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 financial instruments measured at fair value on a recurring basis at the dates indicated: | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Fair Value Measurement Using | Securities at | ||||||||||||||||
Investment securities available for sale: | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
Municipal bonds | $ | — | $ | 98,585 | $ | — | $ | 98,585 | |||||||||
Mortgage-backed securities | — | 183,617 | — | 183,617 | |||||||||||||
Total securities available for sale | $ | — | $ | 282,202 | $ | — | $ | 282,202 | |||||||||
September 30, 2013 | |||||||||||||||||
Fair Value Measurement Using | Securities at | ||||||||||||||||
Investment securities available for sale: | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
U.S. Treasury | $ | — | $ | 82 | $ | — | $ | 82 | |||||||||
Municipal bonds | — | 94,885 | — | 94,885 | |||||||||||||
Mortgage-backed securities | — | 187,879 | — | 187,879 | |||||||||||||
Total securities available for sale | $ | — | $ | 282,846 | $ | — | $ | 282,846 | |||||||||
The following table provides a summary of the changes in balance sheet carrying values associated with Level 3 financial instruments during the three months ended for the periods indicated: | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance, beginning of period | $ | 952 | |||||||||||||||
Total gains or (losses) realized/unrealized: | |||||||||||||||||
Included in earnings (or changes in net assets) | 194 | ||||||||||||||||
Included in other comprehensive income | (140 | ) | |||||||||||||||
Purchases, issuances, and settlements | (1,077 | ) | |||||||||||||||
Transfer in and/or out of Level 3 | 71 | ||||||||||||||||
Balance, end of period | $ | — | |||||||||||||||
The fair value of impaired loans was determined using Level 3 assumptions, and represents impaired loan balances for which a specific reserve has been established or on which a write down has been taken. Generally, the Company obtains third party appraisals (or property evaluations) and/or collateral audits in conjunction with internal analyses based on historical experience on its impaired loans and other real estate owned to determine fair value. In determining the net realizable value of the underlying collateral for impaired loans, the Company will then discount the valuation to cover both market price fluctuations and selling costs the Company expected would be incurred in the event of foreclosure. In addition to the discounts taken, the Company’s calculation of net realizable value considered any other senior liens in place on the underlying collateral. | |||||||||||||||||
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, 2014 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 1,241 | $ | 1,241 | |||||||||
Other real estate owned | — | — | 752 | 752 | |||||||||||||
Total assets | $ | — | $ | — | $ | 1,993 | $ | 1,993 | |||||||||
September 30, 2013 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 150 | $ | 150 | |||||||||
Other real estate owned | — | — | 1,186 | 1,186 | |||||||||||||
Total assets | $ | — | $ | — | $ | 1,336 | $ | 1,336 | |||||||||
The following table presents quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis for the periods indicated: | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Range | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Rate | Maturity | Unobservable | ||||||||||||
Techniques | (years) | Inputs | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||
Business loans: | |||||||||||||||||
Commercial owner occupied | $ | 398 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.75% | 8 | 0-10% | ||||||||||
Real estate loans: | |||||||||||||||||
Commercial non-owner occupied | 500 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 7.00% | 13 | 0-15% | |||||||||||
One-to-four family | 343 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 4.50% - 15.00% | 23-Jun | 0-10% | |||||||||||
Total collateral dependent impaired loans | $ | 1,241 | |||||||||||||||
Other real estate owned | |||||||||||||||||
Land | $ | 752 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | — | — | 0-10% | ||||||||||
Total other real estate owned | $ | 752 | |||||||||||||||
September 30, 2013 | |||||||||||||||||
Range | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Rate | Maturity | Unobservable | ||||||||||||
Techniques | (years) | Inputs | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||
Business loans: | |||||||||||||||||
Commercial and industrial | $ | 68 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.00% | 1 | 0-10% | ||||||||||
SBA | 14 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.00% | 8 | 0-20% | |||||||||||
Real estate loans: | |||||||||||||||||
One-to-four family | 68 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.62% - 11.50% | 23-Nov | 0-10% | |||||||||||
Total collateral dependent impaired loans | $ | 150 | |||||||||||||||
Other real estate owned | |||||||||||||||||
Land | $ | 1,186 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | — | — | 0-10% | ||||||||||
Total other real estate owned | $ | 1,186 |
Pending_Acquisition_of_Indepen
Pending Acquisition of Independence Bank | 9 Months Ended |
Sep. 30, 2014 | |
Pending Acquisition of Independence Bank | ' |
Pending Acquisition of Independence Bank | ' |
Note 11 — Pending Acquisition of Independence Bank | |
On October 21, 2014, the Company entered into an Agreement and Plan of Reorganization (the “Merger Agreement”) to acquire Independence Bank (OTCQB: IDPK), a Newport Beach, California based state-chartered bank pursuant to which the Bank will acquire Independence Bank. At September 30, 2014, Independence Bank had $426.2 million in total assets, $341.1 million in gross loans and $358.3 million in total deposits at September 30, 2014. Independence Bank has six branches located in Orange County and Riverside County.[] [Consider removing from 10-Q]. | |
On the date of the Merger Agreement, the aggregate merger consideration was estimated at approximately $71.5 million, based on a $14.73 closing price of the Company’s common stock on October 21, 2014. Under the terms of the Merger Agreement, holders of Independence Bank common stock, stock options and warrants will receive aggregate cash consideration of $7.2 million and, using the Company’s October 21, 2014 closing price, the aggregate stock consideration is currently estimated at $64.3 million. Assuming such Company stock price, the Independence Bank shareholders will own approximately 20.4% of the combined company. Independence Bank shareholders will have a choice between electing to receive $13.75 per share in cash or 0.9259 of a share of the Company’s common stock for each share of Independence Bank or a combination thereof, subject to the overall requirement that 10% of the aggregate consideration will be in the form of cash and 90% will be in the form of the Company’s common stock. The number of shares of the Company’s common stock to be issued to Independence Bank shareholders is based on a fixed exchange ratio, provided that the Company’s stock price remains between $13.365 and $16.335 as measured by the 10-day average closing price up to and including the fifth trading day prior to closing of the transaction. The value of the stock portion of consideration will fluctuate based on the value of the Company’s common stock. To the extent the average closing price of the Company’s common stock is outside this price range, then the exchange ratio will adjust to reflect the increase or decrease of the Company’s common stock that is outside of this range. | |
The transaction is expected to close late in the first quarter of 2015, subject to satisfaction of customary closing conditions, including regulatory approvals and approval of Independence Bank and the Company’s shareholders. Directors and executive officers of Independence Bank have entered into agreements with the Company and Independence Bank whereby they committed to vote their shares of Independence Bank common stock in favor of the acquisition. For additional information about the proposed acquisition of Independence Bank, see the Company’s Current Report on Form 8-K filed with the SEC on October 22, 2014 and the Merger Agreement which is filed as an exhibit to the Current Report on Form 8-K. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
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 6 to 10 years. | |
Use of Estimates | ' |
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of stock-based compensation awards, the fair values of financial instruments and the status of contingencies are particularly subject to change. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
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 | |||||||||||
FAB | SDTB | IFH | |||||||||
(dollars in thousands) | |||||||||||
Contractual amounts due | $ | 32,107 | $ | 47,251 | $ | 98,320 | |||||
Cash flows not expected to be collected | — | — | — | ||||||||
Expected cash flows | 32,107 | 47,251 | 98,320 | ||||||||
Interest component of expected cash flows | 5,685 | 4,529 | 19,487 | ||||||||
Fair value of acquired loans | $ | 26,422 | $ | 42,722 | $ | 78,833 | |||||
Summary of pro forma net interest and other income, net income and earnings per share | ' | ||||||||||
Nine months Ended September 30, | |||||||||||
2014 | 2013 | ||||||||||
Net interest and other income | $ | 62,378 | $ | 53,232 | |||||||
Net income | $ | 12,344 | $ | 5,027 | |||||||
Basic earnings per share | $ | 0.72 | $ | 0.27 | |||||||
Diluted earnings per share | $ | 0.71 | $ | 0.26 | |||||||
Infinity Franchise Holdings Acquisition | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
IFH | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 555 | $ | — | $ | 555 | |||||
Loans, gross | 78,833 | — | 78,833 | ||||||||
Deferred loan costs | 1,082 | (1,082 | ) | — | |||||||
Allowance for loan losses | (268 | ) | 268 | — | |||||||
Other assets | 776 | — | 776 | ||||||||
Total assets acquired | $ | 80,978 | $ | (814 | ) | $ | 80,164 | ||||
LIABILITIES ASSUMED | |||||||||||
Bank loan | $ | 67,617 | $ | — | $ | 67,617 | |||||
Accrued compensation | 495 | — | 495 | ||||||||
Other liabilities | 214 | — | 214 | ||||||||
Total liabilities assumed | 68,326 | — | 68,326 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 12,652 | $ | (814 | ) | 11,838 | |||||
Consideration paid | 17,360 | ||||||||||
Goodwill recognized | $ | 5,522 | |||||||||
San Diego Trust Bank | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
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 | (223 | ) | 42,722 | |||||||
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 | $ | 3,471 | $ | 211,223 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 183,901 | $ | 6 | $ | 183,907 | |||||
Deferred tax liability (asset) | (333 | ) | 1,507 | 1,174 | |||||||
Other liabilities | 1,823 | (729 | ) | 1,094 | |||||||
Total liabilities assumed | 185,391 | 784 | 186,175 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 22,361 | $ | 2,687 | 25,048 | ||||||
Consideration paid | 30,622 | ||||||||||
Goodwill recognized | $ | 5,574 | |||||||||
First Association Bank | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
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, 2014 | ||||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
Schedule of amortized cost and estimated fair value of securities | ' | |||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 97,358 | $ | 1,495 | $ | (268 | ) | $ | 98,585 | |||||||||||||||||||||||
Mortgage-backed securities | 184,701 | 180 | (1,264 | ) | 183,617 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 282,059 | $ | 1,675 | $ | (1,532 | ) | $ | 282,202 | |||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 73 | $ | 8 | $ | — | $ | 81 | ||||||||||||||||||||||||
Municipal bonds | 95,388 | 589 | (1,850 | ) | 94,127 | |||||||||||||||||||||||||||
Mortgage-backed securities | 165,857 | 12 | (3,988 | ) | 161,881 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 261,318 | $ | 609 | $ | (5,838 | ) | $ | 256,089 | |||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
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, 2014 | ||||||||||||||||||||||||||||||||
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 | 29 | $ | 16,804 | $ | (183 | ) | 26 | $ | 10,459 | $ | (85 | ) | 55 | $ | 27,263 | $ | (268 | ) | ||||||||||||||
Mortgage-backed securities | 22 | 85,248 | (256 | ) | 9 | 42,516 | (1,008 | ) | 31 | 127,764 | (1,264 | ) | ||||||||||||||||||||
Total | 51 | $ | 102,052 | $ | (439 | ) | 35 | $ | 52,975 | $ | (1,093 | ) | 86 | $ | 155,027 | $ | (1,532 | ) | ||||||||||||||
December 31, 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 | 133 | $ | 61,524 | $ | (1,850 | ) | — | $ | — | $ | — | 133 | $ | 61,524 | $ | (1,850 | ) | |||||||||||||||
Mortgage-backed securities | 45 | 140,704 | (3,075 | ) | 1 | 12,607 | (913 | ) | 46 | 153,311 | (3,988 | ) | ||||||||||||||||||||
Total | 178 | $ | 202,228 | $ | (4,925 | ) | 1 | $ | 12,607 | $ | (913 | ) | 179 | $ | 214,835 | $ | (5,838 | ) | ||||||||||||||
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 | ) | ||||||||||||||
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 | |||||||||||||||||||||||
Investment securities available for sale: | Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | — | $ | — | $ | 12,828 | $ | 12,877 | $ | 41,817 | $ | 42,379 | $ | 42,713 | $ | 43,329 | $ | 97,358 | $ | 98,585 | ||||||||||||
Mortgage-backed securities | — | — | — | — | 30,477 | 30,394 | 154,224 | 153,223 | 184,701 | 183,617 | ||||||||||||||||||||||
Total investment securities available for sale | — | — | 12,828 | 12,877 | 72,294 | 72,773 | 196,937 | 196,552 | 282,059 | 282,202 | ||||||||||||||||||||||
Loans_Held_for_Investment_Tabl
Loans Held for Investment (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Loans Held for Investment | ' | ||||||||||||||||||||||
Schedule of components of loans held for investment | ' | ||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2013 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 360,700 | $ | 187,035 | $ | 173,720 | |||||||||||||||||
Commercial owner occupied (1) | 237,996 | 221,089 | 222,162 | ||||||||||||||||||||
SBA | 20,482 | 10,659 | 6,455 | ||||||||||||||||||||
Warehouse facilities | 108,093 | 87,517 | 49,104 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 355,984 | 333,544 | 304,979 | ||||||||||||||||||||
Multi-family | 262,588 | 233,689 | 218,929 | ||||||||||||||||||||
One-to-four family (2) | 125,326 | 145,235 | 152,667 | ||||||||||||||||||||
Construction | 67,118 | 13,040 | 2,835 | ||||||||||||||||||||
Land | 6,103 | 7,605 | 7,371 | ||||||||||||||||||||
Other loans | 3,521 | 3,839 | 3,793 | ||||||||||||||||||||
Total gross loans (3) | 1,547,911 | 1,243,252 | 1,142,015 | ||||||||||||||||||||
Less loans held for sale, net | — | 3,147 | 3,176 | ||||||||||||||||||||
Total gross loans held for investment | 1,547,911 | 1,240,105 | 1,138,839 | ||||||||||||||||||||
Deferred loan origination costs/(fees) and premiums/(discounts), net | 93 | 18 | 130 | ||||||||||||||||||||
Allowance for loan losses | (10,767 | ) | (8,200 | ) | (7,994 | ) | |||||||||||||||||
Loans held for investment, net | $ | 1,537,237 | $ | 1,231,923 | $ | 1,130,975 | |||||||||||||||||
(1) Majority secured by real estate. | |||||||||||||||||||||||
(2) Includes second trust deeds. | |||||||||||||||||||||||
(3) Total gross loans for September 30, 2014 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank (“Canyon National”) loans of $1.5 million, on Palm Desert National Bank (“Palm Desert National”) loans of $1.7 million, and on SDTB loans of $145,000 and (ii) the mark-to-market premium on FAB loans of $31,000. | |||||||||||||||||||||||
Summary of Company's investment in purchased credit impaired loans | ' | ||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||
Canyon | Palm Desert | Total | |||||||||||||||||||||
National | National | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 92 | $ | — | $ | 92 | |||||||||||||||||
Commercial owner occupied | 555 | — | 555 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 971 | — | 971 | ||||||||||||||||||||
One-to-four family | — | 8 | 8 | ||||||||||||||||||||
Total purchase credit impaired | $ | 1,618 | $ | 8 | $ | 1,626 | |||||||||||||||||
Summary of accretable yield on purchased credit impaired | ' | ||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||
Canyon National | Palm Desert National | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at the beginning of period | $ | 1,623 | $ | 53 | $ | 1,676 | |||||||||||||||||
Accretion | (192 | ) | (1 | ) | (193 | ) | |||||||||||||||||
Disposals and other | (17 | ) | — | (17 | ) | ||||||||||||||||||
Change in accretable yield | — | — | — | ||||||||||||||||||||
Balance at the end of period | $ | 1,414 | $ | 52 | $ | 1,466 | |||||||||||||||||
Summary of Company's investment in impaired loans | ' | ||||||||||||||||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
September 30, 2014 | Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 15 | $ | — | |||||||||
Commercial owner occupied | 441 | 398 | — | 398 | — | 555 | 41 | ||||||||||||||||
SBA | — | — | — | — | — | 6 | — | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,221 | 883 | — | 883 | — | 924 | 65 | ||||||||||||||||
One-to-four family | 649 | 526 | — | 526 | — | 504 | 18 | ||||||||||||||||
Totals | $ | 2,311 | $ | 1,807 | $ | — | $ | 1,807 | $ | — | $ | 2,004 | $ | 124 | |||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
December 31, 2013 | Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 255 | $ | 17 | |||||||||
Commercial owner occupied | 872 | 747 | — | 747 | — | 177 | 66 | ||||||||||||||||
SBA | 246 | 14 | — | 14 | — | 70 | 28 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,202 | 983 | 28 | 955 | 1 | 984 | 68 | ||||||||||||||||
Multi-family | — | — | — | — | — | 108 | 2 | ||||||||||||||||
One-to-four family | 746 | 683 | 278 | 405 | 104 | 743 | 44 | ||||||||||||||||
Totals | $ | 3,066 | $ | 2,427 | $ | 306 | $ | 2,121 | $ | 105 | $ | 2,337 | $ | 225 | |||||||||
Contractual | Impaired Loans | Specific | |||||||||||||||||||||
September 30, 2013 | Unpaid | Recorded | With Specific | Without | Allowance for | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Allowance | Loans | Investment | Recognized | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
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 | |||||||||
Summary of additional detail on components of impaired loans | ' | ||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2013 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Nonaccruing loans | $ | 1,624 | $ | 2,239 | $ | 972 | |||||||||||||||||
Accruing loans | 183 | 188 | 189 | ||||||||||||||||||||
Total impaired loans | $ | 1,807 | $ | 2,427 | $ | 1,161 | |||||||||||||||||
Summary of loan portfolio by the Company's internal risk grading system | ' | ||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
September 30, 2014 | Pass | Mention | Substandard | Loans | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 358,922 | $ | — | $ | 1,778 | $ | 360,700 | |||||||||||||||
Commercial owner occupied | 228,154 | 387 | 9,455 | 237,996 | |||||||||||||||||||
SBA | 20,482 | — | — | 20,482 | |||||||||||||||||||
Warehouse facilities | 108,093 | — | — | 108,093 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 351,614 | — | 4,370 | 355,984 | |||||||||||||||||||
Multi-family | 261,574 | 504 | 510 | 262,588 | |||||||||||||||||||
One-to-four family | 124,383 | — | 943 | 125,326 | |||||||||||||||||||
Construction | 67,118 | — | — | 67,118 | |||||||||||||||||||
Land | 6,103 | — | — | 6,103 | |||||||||||||||||||
Other loans | 3,521 | — | — | 3,521 | |||||||||||||||||||
Totals | $ | 1,529,964 | $ | 891 | $ | 17,056 | $ | 1,547,911 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
December 31, 2013 | Pass | Mention | Substandard | Loans | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 184,247 | $ | 12 | $ | 2,776 | $ | 187,035 | |||||||||||||||
Commercial owner occupied | 207,872 | 1,217 | 12,000 | 221,089 | |||||||||||||||||||
SBA | 10,659 | — | — | 10,659 | |||||||||||||||||||
Warehouse facilities | 87,517 | — | — | 87,517 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 329,538 | 352 | 3,654 | 333,544 | |||||||||||||||||||
Multi-family | 232,661 | 511 | 517 | 233,689 | |||||||||||||||||||
One-to-four family | 144,152 | — | 1,083 | 145,235 | |||||||||||||||||||
Construction | 13,040 | — | — | 13,040 | |||||||||||||||||||
Land | 7,605 | — | — | 7,605 | |||||||||||||||||||
Other loans | 3,834 | — | 5 | 3,839 | |||||||||||||||||||
Totals | $ | 1,221,125 | $ | 2,092 | $ | 20,035 | $ | 1,243,252 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
September 30, 2013 | Pass | Mention | Substandard | Loans | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
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 | |||||||||||||||
Schedule of delinquencies in the Company's loan portfolio | ' | ||||||||||||||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
September 30, 2014 | Current | 30-59 | 60-89 | 90+ | Total | Accruing | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 360,700 | $ | — | $ | — | $ | — | $ | 360,700 | $ | — | |||||||||||
Commercial owner occupied | 237,996 | — | — | — | 237,996 | 528 | |||||||||||||||||
SBA | 20,439 | — | 43 | — | 20,482 | — | |||||||||||||||||
Warehouse facilities | 108,093 | — | — | — | 108,093 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 355,984 | — | — | — | 355,984 | 882 | |||||||||||||||||
Multi-family | 262,588 | — | — | — | 262,588 | — | |||||||||||||||||
One-to-four family | 124,963 | 20 | — | 343 | 125,326 | 372 | |||||||||||||||||
Construction | 67,118 | — | — | — | 67,118 | — | |||||||||||||||||
Land | 6,103 | — | — | — | 6,103 | — | |||||||||||||||||
Other loans | 3,521 | — | — | — | 3,521 | — | |||||||||||||||||
Totals | $ | 1,547,505 | $ | 20 | $ | 43 | $ | 343 | $ | 1,547,911 | $ | 1,782 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
December 31, 2013 | Current | 30-59 | 60-89 | 90+ | Total | Accruing | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 187,035 | $ | — | $ | — | $ | — | $ | 187,035 | $ | — | |||||||||||
Commercial owner occupied | 219,875 | 768 | — | 446 | 221,089 | 747 | |||||||||||||||||
SBA | 10,645 | — | — | 14 | 10,659 | 14 | |||||||||||||||||
Warehouse facilities | 87,517 | — | — | — | 87,517 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 332,984 | — | — | 560 | 333,544 | 983 | |||||||||||||||||
Multi-family | 233,689 | — | — | — | 233,689 | — | |||||||||||||||||
One-to-four family | 145,041 | 71 | — | 123 | 145,235 | 507 | |||||||||||||||||
Construction | 13,040 | — | — | — | 13,040 | — | |||||||||||||||||
Land | 7,605 | — | — | — | 7,605 | — | |||||||||||||||||
Other loans | 3,709 | 130 | — | — | 3,839 | — | |||||||||||||||||
Totals | $ | 1,241,140 | $ | 969 | $ | — | $ | 1,143 | $ | 1,243,252 | $ | 2,251 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
September 30, 2013 | Current | 30-59 | 60-89 | 90+ | Total | Accruing | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
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 |
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||
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-four | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | non-owner | family | family | loans | ||||||||||||||||||||||||||||||
occupied | occupied | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 1,968 | $ | 1,818 | $ | 151 | $ | 392 | $ | 1,658 | $ | 817 | $ | 1,099 | $ | 136 | $ | 127 | $ | 34 | $ | 8,200 | |||||||||||||
Charge-offs | (223 | ) | — | — | — | (365 | ) | — | (195 | ) | — | — | — | (783 | ) | ||||||||||||||||||||
Recoveries | 33 | — | 4 | — | — | — | 32 | — | — | 18 | 87 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 1,597 | 38 | 290 | 102 | 608 | 194 | (121 | ) | 639 | (55 | ) | (29 | ) | 3,263 | |||||||||||||||||||||
Balance, September 30, 2014 | $ | 3,375 | $ | 1,856 | $ | 445 | $ | 494 | $ | 1,901 | $ | 1,011 | $ | 815 | $ | 775 | $ | 72 | $ | 23 | $ | 10,767 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
General portfolio allocation | 3,375 | 1,856 | 445 | 494 | 1,901 | 1,011 | 815 | 775 | 72 | 23 | 10,767 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | — | 398 | — | — | 883 | — | 526 | — | — | — | 1,807 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 360,700 | $ | 237,598 | $ | 20,482 | $ | 108,093 | $ | 355,101 | $ | 262,588 | $ | 124,800 | $ | 67,118 | $ | 6,103 | $ | 3,521 | $ | 1,546,104 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 0.94 | % | 0.78 | % | 2.17 | % | 0.46 | % | 0.54 | % | 0.39 | % | 0.65 | % | 1.15 | % | 1.18 | % | 0.65 | % | 0.7 | % | |||||||||||||
Total gross loans | $ | 360,700 | $ | 237,996 | $ | 20,482 | $ | 108,093 | $ | 355,984 | $ | 262,588 | $ | 125,326 | $ | 67,118 | $ | 6,103 | $ | 3,521 | $ | 1,547,911 | |||||||||||||
Total allowance to gross loans | 0.94 | % | 0.78 | % | 2.17 | % | 0.46 | % | 0.53 | % | 0.39 | % | 0.65 | % | 1.15 | % | 1.18 | % | 0.65 | % | 0.7 | % | |||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to-four | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | non-owner | family | 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 | % |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
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, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Stock options excluded | 660,109 | 13,744 | 615,587 | 53,310 | ||||||||||||||
Schedule of Company's unaudited earnings per share calculations | ' | |||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 5,450 | $ | 3,066 | ||||||||||||||
Basic income available to common stockholders | 5,450 | 17,069,216 | $ | 0.32 | 3,066 | 16,640,471 | $ | 0.19 | ||||||||||
Effect of dilutive stock options | — | 273,666 | — | 841,759 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 5,450 | 17,342,882 | $ | 0.31 | $ | 3,066 | 17,482,230 | $ | 0.18 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 12,725 | $ | 4,789 | ||||||||||||||
Basic income available to common stockholders | 12,725 | 17,078,945 | $ | 0.75 | 4,789 | 15,512,508 | $ | 0.31 | ||||||||||
Effect of dilutive stock options | — | 306,890 | — | 802,193 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 12,725 | 17,385,835 | $ | 0.73 | $ | 4,789 | 16,314,701 | $ | 0.29 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Schedule of carrying amount and estimated fair value of financial instruments | ' | ||||||||||||||||
At September 30, 2014 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 103,631 | $ | 103,631 | $ | — | $ | — | $ | 103,631 | |||||||
Securities available for sale | 282,202 | — | 282,202 | — | 282,202 | ||||||||||||
Federal Reserve Bank, TIB and FHLB stock, at cost | 18,643 | 18,643 | — | — | 18,643 | ||||||||||||
Loans held for investment, net | 1,537,237 | — | — | 1,521,466 | 1,521,466 | ||||||||||||
Accrued interest receivable | 6,762 | 6,762 | — | — | 6,762 | ||||||||||||
Other real estate owned | 752 | — | — | 752 | 752 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,543,466 | 1,157,972 | 371,574 | — | 1,529,546 | ||||||||||||
FHLB advances | 150,000 | 149,999 | — | — | 149,999 | ||||||||||||
Other borrowings | 45,561 | — | 46,095 | — | 46,095 | ||||||||||||
Subordinated debentures | 70,310 | — | 34,142 | — | 34,142 | ||||||||||||
Accrued interest payable | 177 | 177 | — | — | 177 | ||||||||||||
At December 31, 2013 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 126,813 | $ | 126,813 | $ | — | $ | — | $ | 126,813 | |||||||
Securities available for sale | 256,089 | — | 256,089 | — | 256,089 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 15,450 | 15,450 | — | — | 15,450 | ||||||||||||
Loans held for sale, net | 3,147 | — | 3,147 | — | 3,147 | ||||||||||||
Loans held for investment, net | 1,231,923 | — | — | 1,230,316 | 1,230,316 | ||||||||||||
Accrued interest receivable | 6,254 | 6,254 | — | — | 6,254 | ||||||||||||
Other real estate owned | 1,186 | — | — | 1,186 | 1,186 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,306,286 | 991,630 | 301,007 | — | 1,292,637 | ||||||||||||
FHLB advances | 156,000 | 156,000 | — | — | 156,000 | ||||||||||||
Other borrowings | 48,091 | — | 49,058 | — | 49,058 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,696 | — | 4,696 | ||||||||||||
Accrued interest payable | 166 | 166 | — | — | 166 | ||||||||||||
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 | — | 282,846 | — | 282,846 | ||||||||||||
Federal Reserve Bank 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 | ||||||||||||
Other real estate owned | 1,186 | — | — | 1,186 | 1,186 | ||||||||||||
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 | ||||||||||||
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 | $ | 328,708 | $ | — | $ | 32,871 | $ | — | $ | 32,871 | |||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 337,181 | $ | — | $ | 33,718 | $ | — | $ | 33,718 | |||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 335,592 | $ | — | $ | 33,559 | $ | — | $ | 33,559 | |||||||
Schedule of Company's financial instruments measured at fair value on a recurring basis | ' | ||||||||||||||||
September 30, 2014 | |||||||||||||||||
Fair Value Measurement Using | Securities at | ||||||||||||||||
Investment securities available for sale: | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
Municipal bonds | $ | — | $ | 98,585 | $ | — | $ | 98,585 | |||||||||
Mortgage-backed securities | — | 183,617 | — | 183,617 | |||||||||||||
Total securities available for sale | $ | — | $ | 282,202 | $ | — | $ | 282,202 | |||||||||
September 30, 2013 | |||||||||||||||||
Fair Value Measurement Using | Securities at | ||||||||||||||||
Investment securities available for sale: | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
U.S. Treasury | $ | — | $ | 82 | $ | — | $ | 82 | |||||||||
Municipal bonds | — | 94,885 | — | 94,885 | |||||||||||||
Mortgage-backed securities | — | 187,879 | — | 187,879 | |||||||||||||
Total securities available for sale | $ | — | $ | 282,846 | $ | — | $ | 282,846 | |||||||||
Summary of the changes in balance sheet carrying values associated with Level 3 financial instruments measured at fair value on a recurring basis | ' | ||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance, beginning of period | $ | 952 | |||||||||||||||
Total gains or (losses) realized/unrealized: | |||||||||||||||||
Included in earnings (or changes in net assets) | 194 | ||||||||||||||||
Included in other comprehensive income | (140 | ) | |||||||||||||||
Purchases, issuances, and settlements | (1,077 | ) | |||||||||||||||
Transfer in and/or out of Level 3 | 71 | ||||||||||||||||
Balance, end of period | $ | — | |||||||||||||||
Schedule of Company's assets measured at fair value on a non-recurring basis | ' | ||||||||||||||||
September 30, 2014 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 1,241 | $ | 1,241 | |||||||||
Other real estate owned | — | — | 752 | 752 | |||||||||||||
Total assets | $ | — | $ | — | $ | 1,993 | $ | 1,993 | |||||||||
September 30, 2013 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 150 | $ | 150 | |||||||||
Other real estate owned | — | — | 1,186 | 1,186 | |||||||||||||
Total assets | $ | — | $ | — | $ | 1,336 | $ | 1,336 | |||||||||
Schedule of quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ||||||||||||||||
September 30, 2014 | |||||||||||||||||
Range | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Rate | Maturity | Unobservable | ||||||||||||
Techniques | (years) | Inputs | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||
Business loans: | |||||||||||||||||
Commercial owner occupied | $ | 398 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.75% | 8 | 0-10% | ||||||||||
Real estate loans: | |||||||||||||||||
Commercial non-owner occupied | 500 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 7.00% | 13 | 0-15% | |||||||||||
One-to-four family | 343 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 4.50% - 15.00% | 23-Jun | 0-10% | |||||||||||
Total collateral dependent impaired loans | $ | 1,241 | |||||||||||||||
Other real estate owned | |||||||||||||||||
Land | $ | 752 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | — | — | 0-10% | ||||||||||
Total other real estate owned | $ | 752 | |||||||||||||||
September 30, 2013 | |||||||||||||||||
Range | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Rate | Maturity | Unobservable | ||||||||||||
Techniques | (years) | Inputs | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||
Business loans: | |||||||||||||||||
Commercial and industrial | $ | 68 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.00% | 1 | 0-10% | ||||||||||
SBA | 14 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.00% | 8 | 0-20% | |||||||||||
Real estate loans: | |||||||||||||||||
One-to-four family | 68 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.62% - 11.50% | 23-Nov | 0-10% | |||||||||||
Total collateral dependent impaired loans | $ | 150 | |||||||||||||||
Other real estate owned | |||||||||||||||||
Land | $ | 1,186 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | — | — | 0-10% | ||||||||||
Total other real estate owned | $ | 1,186 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (Core deposit) | 9 Months Ended |
Sep. 30, 2014 | |
Minimum | ' |
Significant Accounting Policies | ' |
Estimated useful lives | '6 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 | 9 Months Ended | |||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jan. 30, 2014 | Sep. 30, 2014 | Jan. 30, 2014 | Jan. 30, 2014 | Jun. 25, 2013 | Sep. 30, 2014 | Jun. 25, 2013 | Jun. 25, 2013 | Mar. 15, 2013 | Sep. 30, 2014 | Mar. 15, 2013 | Mar. 15, 2013 | Sep. 30, 2014 | |
Infinity Franchise Holdings Acquisition | Infinity Franchise Holdings Acquisition | Infinity Franchise Holdings Acquisition | Infinity Franchise Holdings Acquisition | 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 | Maximum | ||||
item | Acquired Loans | As initially reported | Fair Value Adjustments | Acquired Loans | As initially reported | Fair Value Adjustments | Acquired Loans | As initially reported | Fair Value Adjustments | |||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension period for measurement of fair values | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year |
Cash consideration | ' | ' | ' | $8,300,000 | ' | ' | ' | $16,200,000 | ' | ' | ' | $43,000,000 | ' | ' | ' | ' |
Number of shares of common stock issued as consideration | ' | ' | ' | 562,469 | ' | ' | ' | 1,198,255 | ' | ' | ' | 1,279,217 | ' | ' | ' | ' |
Stock price of the acquired entity (in dollars per share) | ' | ' | ' | $16.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period prior to announcement of the transaction for which average closing price is considered to calculate value of shares to be issued | ' | ' | ' | '10 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Delinquent loans or adversely classified assets | 1,782,000 | 1,153,000 | 2,251,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of entities in business combination | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ASSETS ACQUIRED | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | 555,000 | ' | 555,000 | ' | 30,252,000 | ' | 30,252,000 | ' | 167,663,000 | ' | 167,663,000 | ' | ' |
Investment securities | ' | ' | ' | ' | ' | ' | ' | 124,805,000 | ' | 124,960,000 | -155,000 | 222,391,000 | ' | 219,913,000 | 2,478,000 | ' |
Loans, gross | ' | ' | ' | 78,833,000 | ' | 78,833,000 | ' | 42,722,000 | ' | 42,945,000 | -223,000 | 26,422,000 | ' | 26,264,000 | 158,000 | ' |
Deferred loan costs | ' | ' | ' | ' | ' | 1,082,000 | -1,082,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' | -268,000 | 268,000 | ' | ' | -1,013,000 | 1,013,000 | ' | ' | -224,000 | 224,000 | ' |
Other real estate owned | ' | ' | ' | ' | ' | ' | ' | 752,000 | ' | 752,000 | ' | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' | ' | ' | 2,836,000 | ' | ' | 2,836,000 | 1,930,000 | ' | ' | 1,930,000 | ' |
Other assets | ' | ' | ' | 776,000 | ' | 776,000 | ' | 9,856,000 | ' | 9,856,000 | ' | 5,823,000 | ' | 5,823,000 | ' | ' |
Total assets acquired | ' | ' | ' | 80,164,000 | ' | 80,978,000 | -814,000 | 211,223,000 | ' | 207,752,000 | 3,471,000 | 424,229,000 | ' | 419,439,000 | 4,790,000 | ' |
LIABILITIES ASSUMED | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | ' | ' | ' | ' | 183,907,000 | ' | 183,901,000 | 6,000 | 356,818,000 | ' | 356,737,000 | 81,000 | ' |
Bank loan | ' | ' | ' | 67,617,000 | ' | 67,617,000 | ' | ' | ' | ' | ' | 16,905,000 | ' | 16,905,000 | ' | ' |
Accrued compensation | ' | ' | ' | 495,000 | ' | 495,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability (asset) | ' | ' | ' | ' | ' | ' | ' | 1,174,000 | ' | -333,000 | 1,507,000 | 3,918,000 | ' | ' | 3,918,000 | ' |
Other liabilities | ' | ' | ' | 214,000 | ' | 214,000 | ' | 1,094,000 | ' | 1,823,000 | -729,000 | 536,000 | ' | 536,000 | ' | ' |
Total liabilities assumed | ' | ' | ' | 68,326,000 | ' | 68,326,000 | ' | 186,175,000 | ' | 185,391,000 | 784,000 | 378,177,000 | ' | 374,178,000 | 3,999,000 | ' |
Excess of assets acquired over liabilities assumed | ' | ' | ' | 11,838,000 | ' | 12,652,000 | -814,000 | 25,048,000 | ' | 22,361,000 | 2,687,000 | 46,052,000 | ' | 45,261,000 | 791,000 | ' |
Consideration paid | ' | ' | ' | 17,360,000 | ' | ' | ' | 30,622,000 | ' | ' | ' | 57,906,000 | ' | ' | ' | ' |
Goodwill recognized | 22,950,000 | 17,428,000 | 17,428,000 | 5,522,000 | ' | ' | ' | 5,574,000 | ' | ' | ' | 11,854,000 | ' | ' | ' | ' |
Total purchase credit impaired loans | 1,626,000 | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' |
Contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual amounts due | ' | ' | ' | ' | 98,320,000 | ' | ' | ' | 47,251,000 | ' | ' | ' | 32,107,000 | ' | ' | ' |
Expected cash flows | ' | ' | ' | ' | 98,320,000 | ' | ' | ' | 47,251,000 | ' | ' | ' | 32,107,000 | ' | ' | ' |
Interest component of expected cash flows | ' | ' | ' | ' | 19,487,000 | ' | ' | ' | 4,529,000 | ' | ' | ' | 5,685,000 | ' | ' | ' |
Fair value of acquired loans | ' | ' | ' | ' | 78,833,000 | ' | ' | ' | 42,722,000 | ' | ' | ' | 26,422,000 | ' | ' | ' |
Pro forma net interest and other income, net income and earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest and other income | 62,378,000 | 53,232,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $12,344,000 | $5,027,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.72 | $0.27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $0.71 | $0.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
item | |||
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | $282,059,000 | $261,318,000 | $287,326,000 |
Unrealized Gain | 1,675,000 | 609,000 | 900,000 |
Unrealized Loss | -1,532,000 | -5,838,000 | -5,380,000 |
Total | 282,202,000 | 256,089,000 | 282,846,000 |
Equities held at cost, Estimated Fair Value | ' | ' | ' |
FHLB stock | 9,200,000 | ' | ' |
FRB stock | 5,400,000 | ' | ' |
Other stock | 4,100,000 | ' | ' |
Additional disclosures | ' | ' | ' |
Excess FHLB stock with the entity repurchased by FHLB through their stock repurchase program | 2,200,000 | ' | ' |
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 | ' | ' |
HOA | ' | ' | ' |
Additional disclosures | ' | ' | ' |
Value of inverse putable reverse repurchases secured by collateral | 16,100,000 | ' | ' |
U.S. Treasury | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | ' | 73,000 | 73,000 |
Unrealized Gain | ' | 8,000 | 9,000 |
Total | ' | 81,000 | 82,000 |
Municipal bonds | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | 97,358,000 | 95,388,000 | 95,971,000 |
Unrealized Gain | 1,495,000 | 589,000 | 709,000 |
Unrealized Loss | -268,000 | -1,850,000 | -1,795,000 |
Total | 98,585,000 | 94,127,000 | 94,885,000 |
Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | 184,701,000 | 165,857,000 | 191,282,000 |
Unrealized Gain | 180,000 | 12,000 | 182,000 |
Unrealized Loss | -1,264,000 | -3,988,000 | -3,585,000 |
Total | 183,617,000 | 161,881,000 | 187,879,000 |
Additional disclosures | ' | ' | ' |
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 63,400,000 | ' | ' |
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $65,500,000 | ' | ' |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | item | item | item |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' | ' |
Less than 12 months, Number | 51 | 178 | 170 |
Less than 12 months, Fair Value | $102,052 | $202,228 | $196,696 |
Less than 12 months, Gross Unrealized Holding Losses | -439 | -4,925 | -4,520 |
12 months or more, Number | 35 | 1 | 1 |
12 months or more, Fair Value | 52,975 | 12,607 | 13,117 |
12 months or more, Gross Unrealized Holding Losses | -1,093 | -913 | -860 |
Total, Number | 86 | 179 | 171 |
Total, Fair Value | 155,027 | 214,835 | 209,813 |
Total, Gross Unrealized Holding Losses | -1,532 | -5,838 | -5,380 |
Municipal bonds | ' | ' | ' |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' | ' |
Less than 12 months, Number | 29 | 133 | 131 |
Less than 12 months, Fair Value | 16,804 | 61,524 | 60,183 |
Less than 12 months, Gross Unrealized Holding Losses | -183 | -1,850 | -1,795 |
12 months or more, Number | 26 | ' | ' |
12 months or more, Fair Value | 10,459 | ' | ' |
12 months or more, Gross Unrealized Holding Losses | -85 | ' | ' |
Total, Number | 55 | 133 | 131 |
Total, Fair Value | 27,263 | 61,524 | 60,183 |
Total, Gross Unrealized Holding Losses | -268 | -1,850 | -1,795 |
Mortgage-backed securities | ' | ' | ' |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' | ' |
Less than 12 months, Number | 22 | 45 | 39 |
Less than 12 months, Fair Value | 85,248 | 140,704 | 136,513 |
Less than 12 months, Gross Unrealized Holding Losses | -256 | -3,075 | -2,725 |
12 months or more, Number | 9 | 1 | 1 |
12 months or more, Fair Value | 42,516 | 12,607 | 13,117 |
12 months or more, Gross Unrealized Holding Losses | -1,008 | -913 | -860 |
Total, Number | 31 | 46 | 40 |
Total, Fair Value | 127,764 | 153,311 | 149,630 |
Total, Gross Unrealized Holding Losses | ($1,264) | ($3,988) | ($3,585) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Investment securities available for sale, Amortized Cost | ' | ' | ' |
More than One Year to Five Years | $12,828,000 | ' | ' |
More than Five Years to Ten Years | 72,294,000 | ' | ' |
More than Ten Years | 196,937,000 | ' | ' |
Total | 282,059,000 | ' | ' |
Investment securities available for sale, Fair Value | ' | ' | ' |
More than One Year to Five Years | 12,877,000 | ' | ' |
More than Five Years to Ten Years | 72,773,000 | ' | ' |
More than Ten Years | 196,552,000 | ' | ' |
Total | 282,202,000 | 256,089,000 | 282,846,000 |
Accumulated other comprehensive income (loss) | 143,000 | -5,200,000 | ' |
Accumulated other comprehensive income, net of tax | 84,000 | -3,077,000 | -2,637,000 |
Municipal bonds | ' | ' | ' |
Investment securities available for sale, Amortized Cost | ' | ' | ' |
More than One Year to Five Years | 12,828,000 | ' | ' |
More than Five Years to Ten Years | 41,817,000 | ' | ' |
More than Ten Years | 42,713,000 | ' | ' |
Total | 97,358,000 | ' | ' |
Investment securities available for sale, Fair Value | ' | ' | ' |
More than One Year to Five Years | 12,877,000 | ' | ' |
More than Five Years to Ten Years | 42,379,000 | ' | ' |
More than Ten Years | 43,329,000 | ' | ' |
Total | 98,585,000 | 94,127,000 | 94,885,000 |
Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale, Amortized Cost | ' | ' | ' |
More than Five Years to Ten Years | 30,477,000 | ' | ' |
More than Ten Years | 154,224,000 | ' | ' |
Total | 184,701,000 | ' | ' |
Investment securities available for sale, Fair Value | ' | ' | ' |
More than Five Years to Ten Years | 30,394,000 | ' | ' |
More than Ten Years | 153,223,000 | ' | ' |
Total | $183,617,000 | $161,881,000 | $187,879,000 |
Loans_Held_for_Investment_Deta
Loans Held for Investment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 25, 2013 | Sep. 30, 2014 | Mar. 15, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Maximum | Canyon National | Palm Desert National | San Diego Trust Bank | San Diego Trust Bank | FAB | FAB | Business loans: Commercial and industrial | 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: 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: 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: One-to-four family | Real estate loans: Construction | 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 | |||||
Canyon National | Canyon National | Canyon National | Palm Desert National | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | $1,547,911,000 | $1,243,252,000 | $1,142,015,000 | ' | ' | ' | ' | ' | ' | ' | ' | $360,700,000 | $187,035,000 | $173,720,000 | ' | ' | $237,996,000 | $221,089,000 | $222,162,000 | ' | ' | $20,482,000 | $10,659,000 | $6,455,000 | ' | $108,093,000 | $87,517,000 | $49,104,000 | ' | $355,984,000 | $333,544,000 | $304,979,000 | ' | ' | $262,588,000 | $233,689,000 | $218,929,000 | ' | $125,326,000 | $145,235,000 | $152,667,000 | ' | ' | $67,118,000 | $13,040,000 | $2,835,000 | $6,103,000 | $7,605,000 | $7,371,000 | ' | $3,521,000 | $3,839,000 | $3,793,000 | ' |
Less loans held for sale, net | ' | 3,147,000 | 3,176,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 1,547,911,000 | 1,240,105,000 | 1,138,839,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred loan origination costs / (fees) and premiums / (discounts), net | 93,000 | 18,000 | 130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | -10,767,000 | -8,200,000 | -7,994,000 | -7,994,000 | ' | ' | ' | ' | ' | ' | ' | -3,375,000 | -1,968,000 | -2,801,000 | -1,310,000 | ' | -1,856,000 | -1,818,000 | -1,519,000 | -1,512,000 | ' | -445,000 | -151,000 | -50,000 | -79,000 | -494,000 | -392,000 | -225,000 | -1,544,000 | -1,901,000 | -1,658,000 | -1,403,000 | -1,459,000 | ' | -1,011,000 | -817,000 | -506,000 | -1,145,000 | -815,000 | -1,099,000 | -1,174,000 | -862,000 | ' | -775,000 | -136,000 | -121,000 | -72,000 | -127,000 | -147,000 | -31,000 | -23,000 | -34,000 | -48,000 | -52,000 |
Loans held for investment, net | 1,537,237,000 | 1,231,923,000 | 1,130,975,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unaccreted mark-to-market discount | ' | ' | ' | ' | ' | 1,500,000 | 1,700,000 | 145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mark-to-market premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | 63,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured loans limit to one borrower | 37,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate outstanding balance of loans to one borrower of secured credit | 34,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased Credit Impaired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase credit impaired | 1,626,000 | ' | ' | ' | ' | 1,618,000 | 8,000 | ' | 0 | ' | 0 | 92,000 | ' | ' | ' | 92,000 | 555,000 | ' | ' | ' | 555,000 | ' | ' | ' | ' | ' | ' | ' | ' | 971,000 | ' | ' | ' | 971,000 | ' | ' | ' | ' | 8,000 | ' | ' | ' | 8,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased credit impaired loans, nonaccrual status | $1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_Held_for_Investment_Deta1
Loans Held for Investment (Details 2) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Accretable yield on purchased credit impaired | ' |
Balance at the beginning of period | $1,676 |
Accretion | -193 |
Disposals and other | -17 |
Balance at the end of period | 1,466 |
Canyon National | ' |
Accretable yield on purchased credit impaired | ' |
Balance at the beginning of period | 1,623 |
Accretion | -192 |
Disposals and other | -17 |
Balance at the end of period | 1,414 |
Palm Desert National | ' |
Accretable yield on purchased credit impaired | ' |
Balance at the beginning of period | 53 |
Accretion | -1 |
Balance at the end of period | $52 |
Loans_Held_for_Investment_Deta2
Loans Held for Investment (Details 3) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
item | |||
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | $2,311,000 | $1,660,000 | $3,066,000 |
Recorded Investment | 1,807,000 | 1,161,000 | 2,427,000 |
With Specific Allowance | ' | 282,000 | 306,000 |
Without Specific Allowance | 1,807,000 | 879,000 | 2,121,000 |
Specific Allowance for Impaired Loans | ' | 104,000 | 105,000 |
Average Recorded Investment | 2,004,000 | 2,438,000 | 2,337,000 |
Interest Income Recognized | 124,000 | 418,000 | 225,000 |
Nonaccruing loans | 1,624,000 | 972,000 | 2,239,000 |
Accruing loans | 183,000 | 189,000 | 188,000 |
Total impaired loans | 1,807,000 | 1,161,000 | 2,427,000 |
Loans 90 days or more past due and still accruing | 1,600,000 | 972,000 | 2,200,000 |
Number of TDRs | 0 | ' | ' |
Business loans: Commercial and industrial | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | ' | 186,000 | ' |
Recorded Investment | ' | 68,000 | ' |
Without Specific Allowance | ' | 68,000 | ' |
Average Recorded Investment | 15,000 | 326,000 | 255,000 |
Interest Income Recognized | ' | 71,000 | 17,000 |
Total impaired loans | ' | 68,000 | ' |
Business loans: Commercial owner occupied | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | 441,000 | ' | 872,000 |
Recorded Investment | 398,000 | ' | 747,000 |
Without Specific Allowance | 398,000 | ' | 747,000 |
Average Recorded Investment | 555,000 | 153,000 | 177,000 |
Interest Income Recognized | 41,000 | 18,000 | 66,000 |
Total impaired loans | 398,000 | ' | 747,000 |
Business loans: SBA | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | ' | 246,000 | 246,000 |
Recorded Investment | ' | 14,000 | 14,000 |
Without Specific Allowance | ' | 14,000 | 14,000 |
Average Recorded Investment | 6,000 | 60,000 | 70,000 |
Interest Income Recognized | ' | 16,000 | 28,000 |
Total impaired loans | ' | 14,000 | 14,000 |
Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | 1,221,000 | 527,000 | 1,202,000 |
Recorded Investment | 883,000 | 437,000 | 983,000 |
With Specific Allowance | ' | ' | 28,000 |
Without Specific Allowance | 883,000 | 437,000 | 955,000 |
Specific Allowance for Impaired Loans | ' | ' | 1,000 |
Average Recorded Investment | 924,000 | 983,000 | 984,000 |
Interest Income Recognized | 65,000 | 157,000 | 68,000 |
Total impaired loans | 883,000 | 437,000 | 983,000 |
Real estate loans: Multi-family | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Average Recorded Investment | ' | 144,000 | 108,000 |
Interest Income Recognized | ' | 2,000 | 2,000 |
Real estate loans: One-to-four family | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Contractual Unpaid Principal Balance | 649,000 | 701,000 | 746,000 |
Recorded Investment | 526,000 | 642,000 | 683,000 |
With Specific Allowance | ' | 282,000 | 278,000 |
Without Specific Allowance | 526,000 | 360,000 | 405,000 |
Specific Allowance for Impaired Loans | ' | 104,000 | 104,000 |
Average Recorded Investment | 504,000 | 772,000 | 743,000 |
Interest Income Recognized | 18,000 | 154,000 | 44,000 |
Total impaired loans | $526,000 | $642,000 | $683,000 |
Loans_Held_for_Investment_Deta3
Loans Held for Investment (Details 4) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
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 | $1,547,911 | $1,243,252 | $1,142,015 |
Business loans: Commercial and industrial | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 360,700 | 187,035 | 173,720 |
Business loans: Commercial owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 237,996 | 221,089 | 222,162 |
Business loans: SBA | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 20,482 | 10,659 | 6,455 |
Business loans: Warehouse facilities | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 108,093 | 87,517 | 49,104 |
Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 355,984 | 333,544 | 304,979 |
Real estate loans: Multi-family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 262,588 | 233,689 | 218,929 |
Real estate loans: One-to-four family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 125,326 | 145,235 | 152,667 |
Real estate loans: Construction | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 67,118 | 13,040 | 2,835 |
Real estate loans: Land | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 6,103 | 7,605 | 7,371 |
Other loans | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 3,521 | 3,839 | 3,793 |
Pass | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 1,529,964 | 1,221,125 | 1,117,312 |
Pass | Business loans: Commercial and industrial | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 358,922 | 184,247 | 170,840 |
Pass | Business loans: Commercial owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 228,154 | 207,872 | 207,519 |
Pass | Business loans: SBA | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 20,482 | 10,659 | 6,455 |
Pass | Business loans: Warehouse facilities | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 108,093 | 87,517 | 49,104 |
Pass | Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 351,614 | 329,538 | 299,940 |
Pass | Real estate loans: Multi-family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 261,574 | 232,661 | 217,897 |
Pass | Real estate loans: One-to-four family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 124,383 | 144,152 | 151,564 |
Pass | Real estate loans: Construction | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 67,118 | 13,040 | 2,835 |
Pass | Real estate loans: Land | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 6,103 | 7,605 | 7,371 |
Pass | Other loans | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 3,521 | 3,834 | 3,787 |
Special Mention | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 891 | 2,092 | 3,568 |
Special Mention | Business loans: Commercial and industrial | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | ' | 12 | 68 |
Special Mention | Business loans: Commercial owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 387 | 1,217 | 2,632 |
Special Mention | Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | ' | 352 | 355 |
Special Mention | Real estate loans: Multi-family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 504 | 511 | 513 |
Substandard | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 17,056 | 20,035 | 21,135 |
Substandard | Business loans: Commercial and industrial | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 1,778 | 2,776 | 2,812 |
Substandard | Business loans: Commercial owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 9,455 | 12,000 | 12,011 |
Substandard | Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 4,370 | 3,654 | 4,684 |
Substandard | Real estate loans: Multi-family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 510 | 517 | 519 |
Substandard | Real estate loans: One-to-four family | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | 943 | 1,083 | 1,103 |
Substandard | Other loans | ' | ' | ' |
Credit Risk Grades | ' | ' | ' |
Total Gross Loans | ' | $5 | $6 |
Loans_Held_for_Investment_Deta4
Loans Held for Investment (Details 5) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Other information concerning the credit quality | ' | ' | ' |
Current | $1,547,505 | $1,241,140 | $1,140,966 |
30-59 Days Past Due | 20 | 969 | 724 |
60-89 Days Past Due | 43 | ' | 214 |
90+ Days Past Due | 343 | 1,143 | 111 |
Total | 1,547,911 | 1,243,252 | 1,142,015 |
Non-Accruing | 1,782 | 2,251 | 1,153 |
Business loans: Commercial and industrial | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 360,700 | 187,035 | 173,478 |
30-59 Days Past Due | ' | ' | 163 |
60-89 Days Past Due | ' | ' | 79 |
Total | 360,700 | 187,035 | 173,720 |
Non-Accruing | ' | ' | 78 |
Business loans: Commercial owner occupied | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 237,996 | 219,875 | 222,162 |
30-59 Days Past Due | ' | 768 | ' |
90+ Days Past Due | ' | 446 | ' |
Total | 237,996 | 221,089 | 222,162 |
Non-Accruing | 528 | 747 | ' |
Business loans: SBA | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 20,439 | 10,645 | 6,312 |
60-89 Days Past Due | 43 | ' | 129 |
90+ Days Past Due | ' | 14 | 14 |
Total | 20,482 | 10,659 | 6,455 |
Non-Accruing | ' | 14 | 142 |
Business loans: Warehouse facilities | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 108,093 | 87,517 | 49,104 |
Total | 108,093 | 87,517 | 49,104 |
Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 355,984 | 332,984 | 304,420 |
30-59 Days Past Due | ' | ' | 559 |
90+ Days Past Due | ' | 560 | ' |
Total | 355,984 | 333,544 | 304,979 |
Non-Accruing | 882 | 983 | 437 |
Real estate loans: Multi-family | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 262,588 | 233,689 | 218,929 |
Total | 262,588 | 233,689 | 218,929 |
Real estate loans: One-to-four family | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 124,963 | 145,041 | 152,570 |
30-59 Days Past Due | 20 | 71 | ' |
90+ Days Past Due | 343 | 123 | 97 |
Total | 125,326 | 145,235 | 152,667 |
Non-Accruing | 372 | 507 | 496 |
Real estate loans: Construction | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 67,118 | 13,040 | 2,835 |
Total | 67,118 | 13,040 | 2,835 |
Real estate loans: Land | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 6,103 | 7,605 | 7,371 |
Total | 6,103 | 7,605 | 7,371 |
Other loans | ' | ' | ' |
Other information concerning the credit quality | ' | ' | ' |
Current | 3,521 | 3,709 | 3,785 |
30-59 Days Past Due | ' | 130 | 2 |
60-89 Days Past Due | ' | ' | 6 |
Total | $3,521 | $3,839 | $3,793 |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | $8,200 | $7,994 | ' |
Charge-offs | ' | ' | -783 | -1,608 | ' |
Recoveries | ' | ' | 87 | 344 | ' |
Provisions for (reduction in) loan losses | 1,284 | 646 | 3,263 | 1,264 | ' |
Balance, at the end of the period | 10,767 | 7,994 | 10,767 | 7,994 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | ' | 104 | ' | 104 | 105 |
Amount of allowance attributed to: General portfolio allocation | 10,767 | 7,890 | 10,767 | 7,890 | ' |
Loans individually evaluated for impairment | 1,807 | 1,161 | 1,807 | 1,161 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 8.96% | ' |
Loans collectively evaluated for impairment | 1,546,104 | 1,140,854 | 1,546,104 | 1,140,854 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.70% | 0.69% | ' |
Total gross loans | 1,547,911 | 1,142,015 | 1,547,911 | 1,142,015 | 1,243,252 |
Total allowance to gross loans (as a percent) | ' | ' | 0.70% | 0.70% | ' |
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 | ' | ' |
Commercial and industrial | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,968 | 1,310 | ' |
Charge-offs | ' | ' | -223 | -291 | ' |
Recoveries | ' | ' | -33 | 107 | ' |
Provisions for (reduction in) loan losses | ' | ' | 1,597 | 1,675 | ' |
Balance, at the end of the period | 3,375 | 2,801 | 3,375 | 2,801 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 3,375 | 2,801 | 3,375 | 2,801 | ' |
Loans individually evaluated for impairment | ' | 68 | ' | 68 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 360,700 | 173,652 | 360,700 | 173,652 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.94% | 1.61% | ' |
Total gross loans | 360,700 | 173,720 | 360,700 | 173,720 | 187,035 |
Total allowance to gross loans (as a percent) | ' | ' | 0.94% | 1.61% | ' |
Commercial owner occupied | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,818 | 1,512 | ' |
Charge-offs | ' | ' | ' | -163 | ' |
Provisions for (reduction in) loan losses | ' | ' | 38 | 170 | ' |
Balance, at the end of the period | 1,856 | 1,519 | 1,856 | 1,519 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 1,856 | 1,519 | 1,856 | 1,519 | ' |
Loans individually evaluated for impairment | 398 | ' | 398 | ' | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 237,598 | 222,162 | 237,598 | 222,162 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.78% | 0.68% | ' |
Total gross loans | 237,996 | 222,162 | 237,996 | 222,162 | 221,089 |
Total allowance to gross loans (as a percent) | ' | ' | 0.78% | 0.68% | ' |
SBA | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 151 | 79 | ' |
Charge-offs | ' | ' | ' | -16 | ' |
Recoveries | ' | ' | -4 | 51 | ' |
Provisions for (reduction in) loan losses | ' | ' | 290 | -64 | ' |
Balance, at the end of the period | 445 | 50 | 445 | 50 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 445 | 50 | 445 | 50 | ' |
Loans individually evaluated for impairment | ' | 14 | ' | 14 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 20,482 | 6,441 | 20,482 | 6,441 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 2.17% | 0.78% | ' |
Total gross loans | 20,482 | 6,455 | 20,482 | 6,455 | 10,659 |
Total allowance to gross loans (as a percent) | ' | ' | 2.17% | 0.77% | ' |
Warehouse | ' | ' | ' | ' | ' |
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 | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 392 | 1,544 | ' |
Provisions for (reduction in) loan losses | ' | ' | 102 | -1,319 | ' |
Balance, at the end of the period | 494 | 225 | 494 | 225 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 494 | 225 | 494 | 225 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 108,093 | 49,104 | 108,093 | 49,104 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.46% | 0.46% | ' |
Total gross loans | 108,093 | 49,104 | 108,093 | 49,104 | 87,517 |
Total allowance to gross loans (as a percent) | ' | ' | 0.46% | 0.46% | ' |
Commercial non-owner occupied | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,658 | 1,459 | ' |
Charge-offs | ' | ' | -365 | -757 | ' |
Provisions for (reduction in) loan losses | ' | ' | 608 | 701 | ' |
Balance, at the end of the period | 1,901 | 1,403 | 1,901 | 1,403 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | ' | ' | ' | ' | 1 |
Amount of allowance attributed to: General portfolio allocation | 1,901 | 1,403 | 1,901 | 1,403 | ' |
Loans individually evaluated for impairment | 883 | 437 | 883 | 437 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 355,101 | 304,542 | 355,101 | 304,542 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.54% | 0.46% | ' |
Total gross loans | 355,984 | 304,979 | 355,984 | 304,979 | 333,544 |
Total allowance to gross loans (as a percent) | ' | ' | 0.53% | 0.46% | ' |
Multi-family | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 817 | 1,145 | ' |
Charge-offs | ' | ' | ' | -101 | ' |
Provisions for (reduction in) loan losses | ' | ' | 194 | -538 | ' |
Balance, at the end of the period | 1,011 | 506 | 1,011 | 506 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 1,011 | 506 | 1,011 | 506 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 262,588 | 218,929 | 262,588 | 218,929 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.39% | 0.23% | ' |
Total gross loans | 262,588 | 218,929 | 262,588 | 218,929 | 233,689 |
Total allowance to gross loans (as a percent) | ' | ' | 0.39% | 0.23% | ' |
One-to-four family | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 1,099 | 862 | ' |
Charge-offs | ' | ' | -195 | -273 | ' |
Recoveries | ' | ' | -32 | 45 | ' |
Provisions for (reduction in) loan losses | ' | ' | -121 | 540 | ' |
Balance, at the end of the period | 815 | 1,174 | 815 | 1,174 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | ' | 104 | ' | 104 | 104 |
Amount of allowance attributed to: General portfolio allocation | 815 | 1,070 | 815 | 1,070 | ' |
Loans individually evaluated for impairment | 526 | 642 | 526 | 642 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 16.20% | ' |
Loans collectively evaluated for impairment | 124,800 | 152,025 | 124,800 | 152,025 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.65% | 0.70% | ' |
Total gross loans | 125,326 | 152,667 | 125,326 | 152,667 | 145,235 |
Total allowance to gross loans (as a percent) | ' | ' | 0.65% | 0.77% | ' |
Construction | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 136 | ' | ' |
Provisions for (reduction in) loan losses | ' | ' | 639 | 121 | ' |
Balance, at the end of the period | 775 | 121 | 775 | 121 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 775 | 121 | 775 | 121 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 67,118 | 2,835 | 67,118 | 2,835 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 1.15% | 4.27% | ' |
Total gross loans | 67,118 | 2,835 | 67,118 | 2,835 | 13,040 |
Total allowance to gross loans (as a percent) | ' | ' | 1.15% | 4.27% | ' |
Land | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 127 | 31 | ' |
Provisions for (reduction in) loan losses | ' | ' | -55 | 116 | ' |
Balance, at the end of the period | 72 | 147 | 72 | 147 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 72 | 147 | 72 | 147 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 6,103 | 7,371 | 6,103 | 7,371 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 1.18% | 1.99% | ' |
Total gross loans | 6,103 | 7,371 | 6,103 | 7,371 | 7,605 |
Total allowance to gross loans (as a percent) | ' | ' | 1.18% | 1.99% | ' |
Other loans | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | 34 | 52 | ' |
Charge-offs | ' | ' | ' | -7 | ' |
Recoveries | ' | ' | -18 | 141 | ' |
Provisions for (reduction in) loan losses | ' | ' | -29 | -138 | ' |
Balance, at the end of the period | 23 | 48 | 23 | 48 | ' |
Other disclosures | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 23 | 48 | 23 | 48 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 3,521 | 3,793 | 3,521 | 3,793 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | 0.65% | 1.27% | ' |
Total gross loans | $3,521 | $3,793 | $3,521 | $3,793 | $3,839 |
Total allowance to gross loans (as a percent) | ' | ' | 0.65% | 1.27% | ' |
Subordinated_Debentures_Detail
Subordinated Debentures (Details) (USD $) | 1 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2004 | Aug. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2004 |
PPBI Trust I | Notes | Notes | Subordinated Debentures | Subordinated Debentures | |
PPBI Trust I | |||||
Subordinated Debentures | ' | ' | ' | ' | ' |
Debt issued | ' | $60 | ' | ' | $10.30 |
Contribution of net proceeds from the Private Placement to the Bank to support general corporate purposes | ' | 40 | ' | ' | ' |
Fixed interest rate (as a percent) | ' | ' | 5.75% | ' | ' |
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) | ' | ' | ' | 2.98% | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share | ' | ' | ' | ' |
Securities excluded from diluted earnings per share calculation | 660,109 | 13,744 | 615,587 | 53,310 |
Net Income | ' | ' | ' | ' |
Net income | $5,450 | $3,066 | $12,725 | $4,789 |
Basic income available to common stockholders | 5,450 | 3,066 | 12,725 | 4,789 |
Diluted income available to common stockholders plus assumed conversions | $5,450 | $3,066 | $12,725 | $4,789 |
Shares | ' | ' | ' | ' |
Basic income available to common stockholders (in shares) | 17,069,216 | 16,640,471 | 17,078,945 | 15,512,508 |
Effect of dilutive stock options (in shares) | 273,666 | 841,759 | 306,890 | 802,193 |
Diluted income available to common stockholders plus assumed conversions (in shares) | 17,342,882 | 17,482,230 | 17,385,835 | 16,314,701 |
Per Share Amount | ' | ' | ' | ' |
Basic income available to common stockholders (in dollars per share) | $0.32 | $0.19 | $0.75 | $0.31 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $0.31 | $0.18 | $0.73 | $0.29 |
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, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
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 | $282,202 | $282,846 | $256,089 |
Accrued interest receivable | 6,762 | 5,629 | 6,254 |
Other real estate owned | 752 | 1,186 | 1,186 |
Off-balance sheet commitments and standby letters of credit | ' | ' | ' |
Notional Amount | 328,708 | 335,592 | 337,181 |
Cost to Cede or Assume | 32,871 | 33,359 | 33,718 |
Level 1 | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 103,631 | 61,419 | 126,813 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 18,643 | 10,827 | 15,450 |
Accrued interest receivable | 6,762 | 5,629 | 6,254 |
Liabilities: | ' | ' | ' |
Deposit accounts | 1,157,972 | 998,217 | 991,630 |
FHLB advances | 149,999 | 35,000 | 156,000 |
Accrued interest payable | 177 | 195 | 166 |
Level 2 | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available for sale | 282,202 | 282,846 | 256,089 |
Loans held for sale, net | ' | 3,176 | 3,147 |
Liabilities: | ' | ' | ' |
Deposit accounts | 371,574 | 284,403 | 301,007 |
Other borrowings | 46,095 | 53,435 | 49,058 |
Subordinated debentures | 34,142 | 4,766 | 4,696 |
Off-balance sheet commitments and standby letters of credit | ' | ' | ' |
Cost to Cede or Assume | 32,871 | 33,359 | 33,718 |
Level 3 | ' | ' | ' |
Assets: | ' | ' | ' |
Loans held for investment, net | 1,521,466 | 1,225,352 | 1,230,316 |
Other real estate owned | 752 | 1,186 | 1,186 |
Carrying Amount | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 103,631 | 61,419 | 126,813 |
Securities available for sale | 282,202 | 282,846 | 256,089 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 18,643 | 10,827 | 15,450 |
Loans held for sale, net | ' | 3,176 | 3,147 |
Loans held for investment, net | 1,537,237 | 1,130,975 | 1,231,923 |
Accrued interest receivable | 6,762 | 5,629 | 6,254 |
Other real estate owned | 752 | 1,186 | 1,186 |
Liabilities: | ' | ' | ' |
Deposit accounts | 1,543,466 | 1,284,134 | 1,306,286 |
FHLB advances | 150,000 | 35,000 | 156,000 |
Other borrowings | 45,561 | 51,474 | 48,091 |
Subordinated debentures | 70,310 | 10,310 | 10,310 |
Accrued interest payable | 177 | 195 | 166 |
Estimated Fair Value | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 103,631 | 61,419 | 126,813 |
Securities available for sale | 282,202 | 282,846 | 256,089 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 18,643 | 10,827 | 15,450 |
Loans held for sale, net | ' | 3,176 | 3,147 |
Loans held for investment, net | 1,521,466 | 1,225,352 | 1,230,316 |
Accrued interest receivable | 6,762 | 5,629 | 6,254 |
Other real estate owned | 752 | 1,186 | 1,186 |
Liabilities: | ' | ' | ' |
Deposit accounts | 1,529,546 | 1,282,620 | 1,292,637 |
FHLB advances | 149,999 | 35,000 | 156,000 |
Other borrowings | 46,095 | 53,435 | 49,058 |
Subordinated debentures | 34,142 | 4,766 | 4,696 |
Accrued interest payable | $177 | $195 | $166 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | $282,202 | $256,089 | $282,846 |
Fair Value Measurement Using: Level 2 | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 282,202 | 256,089 | 282,846 |
Recurring basis | Fair Value Measurement Using: Level 2 | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 282,202 | ' | 282,846 |
Recurring basis | Fair Value Measurement Using: Level 2 | U.S. Treasury | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | ' | ' | 82 |
Recurring basis | Fair Value Measurement Using: Level 2 | Municipal bonds | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 98,585 | ' | 94,885 |
Recurring basis | Fair Value Measurement Using: Level 2 | Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 183,617 | ' | 187,879 |
Recurring basis | Assets at Fair Value | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 282,202 | ' | 282,846 |
Recurring basis | Assets at Fair Value | U.S. Treasury | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | ' | ' | 82 |
Recurring basis | Assets at Fair Value | Municipal bonds | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | 98,585 | ' | 94,885 |
Recurring basis | Assets at Fair Value | Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Total securities available for sale | $183,617 | ' | $187,879 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
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 |
Total gains or (losses) realized/unrealized: Included in earnings (or changes in net assets) | 194 |
Total gains or (losses) realized/unrealized: Included in other comprehensive income | -140 |
Total gains or (losses) realized/unrealized: Purchases, issuances, and settlements | -1,077 |
Total gains or (losses) realized/unrealized: Transfer in and/or out of Level 3 | $71 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Fair Value Disclosures | ' | ' | ' |
Other real estate owned | $752 | $1,186 | $1,186 |
Fair Value Measurement Using: Level 3 | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Other real estate owned | 752 | 1,186 | 1,186 |
Non-recurring basis | Fair Value Measurement Using: Level 3 | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Collateral dependent impaired loans | 1,241 | ' | 150 |
Other real estate owned | 752 | ' | 1,186 |
Total assets | 1,993 | ' | 1,336 |
Non-recurring basis | Assets at Fair Value | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Collateral dependent impaired loans | 1,241 | ' | 150 |
Other real estate owned | 752 | ' | 1,186 |
Total assets | $1,993 | ' | $1,336 |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments (Details 5) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Level 3 | Level 3 | Level 3 | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | |||
Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | |||||||
Business loans: Commercial and industrial | Business loans: Commercial and industrial | Business loans: Commercial and industrial | Business loans: Commercial and industrial | Business loans: SBA | Business loans: SBA | Business loans: SBA | Business loans: SBA | Business loans: Commercial owner occupied | Business loans: Commercial owner occupied | Business loans: Commercial owner occupied | Business loans: Commercial 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: Commercial non-owner occupied | 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: One-to-four family | Real estate loans: One-to-four family | Land | Land | Land | Land | Land | Land | |||||||||
Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | Collateral analysis | |||||||||||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | |||||||||||||||||||||
Quantitative information about level 3 of fair value measurements for financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral dependent impaired loans | ' | ' | ' | ' | ' | ' | $1,241 | $150 | $68 | ' | ' | ' | $14 | ' | ' | ' | $398 | ' | ' | ' | $500 | ' | ' | ' | $343 | $68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other real estate owned | $752 | $1,186 | $1,186 | $752 | $1,186 | $1,186 | $752 | $1,186 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $752 | $1,186 | ' | ' | ' | ' |
Unobservable Inputs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | 6.00% | ' | ' | ' | 6.75% | ' | ' | ' | 7.00% | ' | ' | ' | ' | 4.50% | 6.62% | 15.00% | 11.50% | ' | ' | ' | ' | ' | ' |
Management adjustment to reflect current conditions and selling costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | '8 years | ' | ' | ' | '8 years | ' | ' | ' | '13 years | ' | ' | ' | ' | '6 years | '11 years | '23 years | '23 years | ' | ' | ' | ' | ' | ' |
Management adjustment to reflect current conditions and selling costs (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 10.00% | ' | ' | 0.00% | 20.00% | ' | ' | 0.00% | 10.00% | ' | ' | 0.00% | 15.00% | ' | ' | 0.00% | 0.00% | 10.00% | 10.00% | ' | ' | 0.00% | 0.00% | 10.00% | 10.00% |
Pending_Acquisition_of_Indepen1
Pending Acquisition of Independence Bank (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Oct. 21, 2014 | Oct. 21, 2014 | Oct. 21, 2014 |
Independence Bank | Independence Bank | Independence Bank | Independence Bank | ||||
item | Merger agreement | Merger agreement | Merger agreement | ||||
Minimum | Maximum | ||||||
Pending Acquisition of Independence Bank | ' | ' | ' | ' | ' | ' | ' |
Total assets | $2,034,248,000 | $1,714,187,000 | $1,569,020,000 | $426,200,000 | ' | ' | ' |
Gross loans | 1,547,911,000 | 1,243,252,000 | 1,142,015,000 | 341,100,000 | ' | ' | ' |
Total deposits | 1,543,466,000 | 1,306,286,000 | 1,284,134,000 | 358,300,000 | ' | ' | ' |
Number of branches | ' | ' | ' | 6 | ' | ' | ' |
Consideration paid | ' | ' | ' | ' | 71,500,000 | ' | ' |
Stock price of the acquired entity (in dollars per share) | ' | ' | ' | ' | $14.73 | $13.37 | $16.34 |
Cash consideration | ' | ' | ' | ' | 7,200,000 | ' | ' |
Stock issued as part of the acquisition consideration | ' | ' | ' | ' | $64,300,000 | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | 20.40% | ' | ' |
Share price per share in cash that the acquired entity's shareholder will receive for each share of acquiree (in dollars per share) | ' | ' | ' | ' | $13.75 | ' | ' |
Number of shares of the entity that the acquired entity's shareholder will receive for each share of acquiree | ' | ' | ' | ' | 0.9259 | ' | ' |
Consideration in the form of cash (as a percent) | ' | ' | ' | ' | 10.00% | ' | ' |
Consideration in the form of stock (as a percent) | ' | ' | ' | ' | 90.00% | ' | ' |
Period ending on the fifth day prior to the transaction for which average closing price is considered to calculate value of shares to be issued | ' | ' | ' | ' | '10 days | ' | ' |