Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | PACIFIC PREMIER BANCORP INC | |
Entity Central Index Key | 1028918 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,511,426 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and due from banks | $178,096 | $110,650 | $124,143 |
Federal funds sold | 275 | 275 | 276 |
Cash and cash equivalents | 178,371 | 110,925 | 124,419 |
Investment securities available for sale | 280,461 | 201,638 | 202,142 |
FHLB and other stock, at cost | 30,586 | 17,067 | 14,104 |
Loans held for investment | 2,131,387 | 1,628,622 | 1,325,372 |
Allowance for loan losses | -13,646 | -12,200 | -8,685 |
Loans held for investment, net | 2,117,741 | 1,616,422 | 1,316,687 |
Accrued interest receivable | 8,769 | 7,131 | 5,865 |
Other real estate owned | 997 | 1,037 | 752 |
Premises and equipment | 9,591 | 9,165 | 9,643 |
Deferred income taxes | 12,815 | 9,383 | 9,180 |
Bank owned life insurance | 38,377 | 26,822 | 26,240 |
Intangible assets | 8,203 | 5,614 | 6,374 |
Goodwill | 51,010 | 22,950 | 22,950 |
Other assets | 16,079 | 10,743 | 6,926 |
TOTAL ASSETS | 2,753,000 | 2,038,897 | 1,745,282 |
Deposit accounts: | |||
Noninterest bearing checking | 619,763 | 456,754 | 412,871 |
Interest-bearing: | |||
Checking | 130,869 | 131,635 | 137,285 |
Money market/savings | 809,408 | 600,764 | 529,348 |
Retail Certificates of Deposit | 406,649 | 365,168 | 350,690 |
Wholesale/brokered certificates of deposit | 76,477 | 76,505 | 5,009 |
Total interest-bearing | 1,423,403 | 1,174,072 | 1,022,332 |
Total deposits | 2,043,166 | 1,630,826 | 1,435,203 |
FHLB advances and other borrowings | 343,434 | 116,643 | 95,506 |
Subordinated debentures | 70,310 | 70,310 | 10,310 |
Accrued expenses and other liabilities | 22,843 | 21,526 | 15,403 |
TOTAL LIABILITIES | 2,479,753 | 1,839,305 | 1,556,422 |
STOCKHOLDERS' EQUITY: | |||
Common stock, $.01 par value; 25,000,000 shares authorized; 21,387,818 shares at March 31, 2015, 16,903,884 shares at December 31, 2014, and 17,224,977 shares at March 31, 2014 issued and outstanding | 214 | 169 | 172 |
Additional paid-in capital | 218,528 | 147,474 | 152,325 |
Retained earnings | 53,220 | 51,431 | 37,447 |
Accumulated other comprehensive income (loss), net of tax (benefit) of $898 at March 31, 2015, $362 at December 31, 2014 and ($757) at March 31, 2014 | 1,285 | 518 | -1,084 |
TOTAL STOCKHOLDERS' EQUITY | 273,247 | 199,592 | 188,860 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,753,000 | $2,038,897 | $1,745,282 |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
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 | 21,387,818 | 17,224,977 | 16,903,884 |
Common stock, shares outstanding | 21,387,818 | 17,224,977 | 16,903,884 |
Accumulated other comprehensive income (loss), tax (benefit) (in dollars) | $898 | ($757) | $362 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
INTEREST INCOME | ||
Loans | $24,513 | $16,585 |
Investment securities and other interest-earning assets | 1,557 | 1,437 |
Total interest income | 26,070 | 18,022 |
INTEREST EXPENSE | ||
Deposits | 1,606 | 1,069 |
FHLB advances and other borrowings | 375 | 243 |
Subordinated debentures | 971 | 75 |
Total interest expense | 2,952 | 1,387 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 23,118 | 16,635 |
PROVISION FOR LOAN LOSSES | 1,830 | 949 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 21,288 | 15,686 |
NONINTEREST INCOME | ||
Loan servicing fees | 901 | 856 |
Deposit fees | 582 | 454 |
Net gain from sales of loans | 548 | |
Net gain from sales of investment securities | 116 | 62 |
Other-than-temporary-impairment recovery (loss) on investment securities, net | 13 | |
Other income | 427 | 119 |
Total noninterest income | 2,026 | 2,052 |
NONINTEREST EXPENSE | ||
Compensation and benefits | 9,522 | 6,891 |
Premises and occupancy | 1,829 | 1,588 |
Data processing and communications | 702 | 1,131 |
Other real estate owned operations, net | 48 | 13 |
FDIC insurance premiums | 314 | 237 |
Legal, audit and professional expense | 521 | 593 |
Marketing expense | 603 | 176 |
Office and postage expense | 499 | 369 |
Loan expense | 193 | 184 |
Deposit expense | 805 | 761 |
Merger related expense | 3,992 | 626 |
Other expense | 1,441 | 972 |
Total noninterest expense | 20,469 | 13,541 |
NET INCOME BEFORE INCOME TAX | 2,845 | 4,197 |
INCOME TAX | 1,056 | 1,565 |
NET INCOME | $1,789 | $2,632 |
EARNINGS PER SHARE | ||
Basic (in dollars per share) | $0.09 | $0.15 |
Diluted (in dollars per share) | $0.09 | $0.15 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||
Basic (in shares) | 20,091,924 | 17,041,594 |
Diluted (in shares) | 20,382,832 | 17,376,001 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $1,789 | $2,632 |
Other comprehensive income (loss), net of tax (benefit): | ||
Unrealized holding gains (losses) on securities arising during the period, net of income taxes (benefits) | 835 | 2,029 |
Reclassification adjustment for net gain on sale of securities included in net income, net of income taxes | -68 | -36 |
Net unrealized gain (loss) on securities, net of income taxes | 767 | 1,993 |
Comprehensive income | $2,556 | $4,625 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Tax effect on unrealized holding gains (losses) on securities arising during the period | $584,000 | $1,400,000 |
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | $48,000 | $26,000 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income | Total |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2013 | $166 | $143,322 | $34,815 | ($3,077) | $175,226 |
Balance (in shares) at Dec. 31, 2013 | 16,656,279 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,632 | 2,632 | |||
Other comprehensive income | 1,993 | 1,993 | |||
Share-based compensation expense | 181 | 181 | |||
Common stock repurchased and retired | -284 | -284 | |||
Common stock repurchased and retired (in shares) | -3,936 | ||||
Common stock issued | 6 | 9,006 | 9,012 | ||
Common stock issued (in shares) | 562,469 | ||||
Exercise of stock options | 100 | 100 | |||
Exercise of stock options (in shares) | 10,165 | ||||
Balance at Mar. 31, 2014 | 172 | 152,325 | 37,447 | -1,084 | 188,860 |
Balance (in shares) at Mar. 31, 2014 | 17,224,977 | 17,224,977 | |||
Balance at Dec. 31, 2014 | 169 | 147,474 | 51,431 | 518 | 199,592 |
Balance (in shares) at Dec. 31, 2014 | 16,903,884 | 16,903,884 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,789 | 1,789 | |||
Other comprehensive income | 767 | 767 | |||
Share-based compensation expense | 200 | 200 | |||
Common stock issued | 45 | 70,884 | 70,929 | ||
Common stock issued (in shares) | 4,480,645 | ||||
Warrant exercise | 15 | 15 | |||
Warrant exercise (in shares) | 2,456 | ||||
Repurchase of common stock | -93 | -93 | |||
Repurchase of common stock (in shares) | -5,833 | ||||
Exercise of stock options | 48 | 48 | |||
Exercise of stock options (in shares) | 6,666 | ||||
Balance at Mar. 31, 2015 | $214 | $218,528 | $53,220 | $1,285 | $273,247 |
Balance (in shares) at Mar. 31, 2015 | 21,387,818 | 21,387,818 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $1,789 | $2,632 |
Adjustments to net income: | ||
Depreciation and amortization expense | 610 | 549 |
Amortization of Loan Fees and Discounts | -357 | |
Provision for loan losses | 1,830 | 949 |
Share-based compensation expense | 200 | 181 |
Loss on sale and disposal of premises and equipment | 23 | |
Loss on sale of other real estate owned | 11 | |
Write down of other real estate owned | 40 | |
Amortization of premium/(discounts) on securities held for sale, net | 804 | 637 |
Accretion of loan mark-to-market discount from acquisition | -371 | -579 |
Gain on sale of investment securities available for sale | -116 | -62 |
Other-than-temporary impairment loss (recovery) on investment securities, net | -13 | |
Gain on sale of loans held for investment | -548 | |
Recoveries on loans | 12 | 37 |
Principal payments from loans held for sale | 31 | |
Loss on loans held for sale | 180 | |
Deferred income tax provision | -703 | |
Change in accrued expenses and other liabilities, net | 1,144 | -3,916 |
Income from bank owned life insurance, net | -279 | -189 |
Change in accrued interest receivable and other assets, net | -4,934 | -372 |
Net cash provided by (used in) operating activities | 372 | -1,152 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale and principal payments on loans held for investment | 106,409 | 87,580 |
Decrease (increase) in undisbursed loan funds | -39,395 | 17,651 |
Purchase and origination of loans held for investment | -236,554 | -108,020 |
Proceeds from sale of other real estate owned | 423 | |
Principal payments on securities available for sale | 6,851 | 6,212 |
Purchase of securities available for sale | -40,077 | -4,976 |
Proceeds from sale or maturity of securities available for sale | 8,771 | 56,081 |
Investment in bank owned life insurance | -2,000 | |
Purchases of premises and equipment | -525 | -277 |
Redemption (purchase) of Federal Reserve Bank stock | 506 | -6 |
Redemption (purchase) of FHLB stock | -11,656 | 1,352 |
Cash acquired (disbursed) in acquisitions, net | 2,961 | -7,793 |
Net cash provided by (used in) investing activities | -202,709 | 46,227 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in deposit accounts | 76,322 | 128,917 |
Repayment of FHLB advances and other borrowings, net | -176,202 | |
Proceeds from FHLB advances | 193,491 | |
Proceeds from exercise of stock options | 48 | 100 |
Warrants exercised | 15 | |
Repurchase of common stock | -93 | -284 |
Net cash provided by (used in) financing activities | 269,783 | -47,469 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 67,446 | -2,394 |
CASH AND CASH EQUIVALENTS, beginning of period | 110,925 | 126,813 |
CASH AND CASH EQUIVALENTS, end of period | 178,371 | 124,419 |
SUPPLEMENTAL CASH FLOW DISCLOSURES | ||
Interest paid | 3,853 | 1,104 |
Income taxes paid | 3,700 | 3,500 |
Assets acquired (liabilities assumed and capital created) in acquisitions (See Note 4): | ||
Investment securities | 53,752 | |
FHLB and Other Stock | 2,369 | |
Loans | 332,893 | 78,833 |
Core deposit intangible | 2,903 | |
Deferred income tax | 3,969 | |
Bank owned life insurance | 11,276 | |
Goodwill | 28,060 | 5,522 |
Fixed assets | 2,134 | 74 |
Other assets | 1,726 | 702 |
Deposits | -336,018 | |
Other borrowings | -33,300 | -67,617 |
Other liabilities | -1,796 | -709 |
Common stock and additional paid-in capital | -70,929 | -9,012 |
NONCASH INVESTING ACTIVITIES DURING THE PERIOD | ||
Investment securities available for sale purchased and not settled | 557 | |
Loans held for sale transfer to loans held for investment | $2,936 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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 March 31, 2015, December 31, 2014, and March 31, 2014, the results of its operations and comprehensive income for the three months ended March 31, 2015 and 2014 and the changes in stockholders’ equity and cash flows for the three months ended March 31, 2015 and 2014. Operating results or comprehensive income for the three months ended March 31, 2015 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, 2015. | |
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, 2014 (the “2014 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 | 3 Months Ended |
Mar. 31, 2015 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | |
Note 2 — Recently Issued Accounting Pronouncements | |
Accounting Standards Adopted in 2015 | |
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): “Accounting for Investments in Qualified Affordable Housing Projects.” This Update 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 for public business entities and after December 15, 2015 for non public business entities. Upon adoption, the guidance must be applied retrospectively to all periods presented. However, entities that used 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 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 election. The Company adopted the provisions of ASU No. 2014-01 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. | |
In January 2014, the FASB issued ASU No. 2014-04, Receivables-Troubled Debt Restructuring By Creditors (Subtopic 310-40): “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 Company adopted the provisions of ASU No. 2014-4 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. | |
In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860):”Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” This Update aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The Update requires a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The Update also requires expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The Update is effective for interim or annual period beginning after December 15, 2014. All of the Company’s repurchase agreements are typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. The Company adopted the provisions of ASU No. 2014-11 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. | |
In August 2014, the FASB issued ASU No. 2014-14 Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): “Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure”. This Update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this Update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. This Update is effective for interim and annual periods beginning after December 15, 2014 for public business entities and after December 15, 2015 for non public business entities. The Company adopted the provisions of ASU No. 2014-14 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. | |
Accounting Standards Pending Adoption | |
In August 2014, the FASB issued guidance within ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This Update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. This Update is effective for interim and annual periods ending after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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 | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
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. | |||||||||||
Independence Bank Acquisition | |||||||||||
On January 26, 2015, the Company completed its acquisition of Independence Bank (“IDPK”) in exchange for consideration valued at $78.5, which consisted of $6.1 million of cash consideration for IDPK common stockholders, $1.5 million of aggregate cash consideration to the holders of IDPK stock options and warrants, and the issuance of 4,480,645 shares of the Corporation’s common stock, which was valued at $70.9 million based on the closing stock price of the Company’s common stock on January 26, 2015 of $15.83 per share. | |||||||||||
IDPK was a Newport Beach, California based state-chartered bank. The acquisition was an opportunity for the Company to strengthen its competitive position as one of the premier community banks headquartered in Southern California. Additionally, the IDPK acquisition enhanced and connected the Company’s footprint in Southern California. | |||||||||||
Goodwill in the amount of $28.1 million was recognized in the IDPK acquisition. Goodwill recognized in this transaction is not deductible for income tax purposes. | |||||||||||
The following table represents the assets acquired and liabilities assumed of IDPK as of January 26, 2015 and the provisional fair value adjustments and amounts recorded by the Company in 2015 under the acquisition method of accounting: | |||||||||||
IDBK | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 10,486 | $ | 10,486 | |||||||
Investment securities | 56,503 | (382 | ) | 56,121 | |||||||
Loans, gross | 339,502 | (6,609 | ) | 332,893 | |||||||
Allowance for loan losses | (3,301 | ) | 3,301 | — | |||||||
Deferred income taxes | 3,252 | 717 | 3,969 | ||||||||
Bank owned life insurance | 11,276 | 11,276 | |||||||||
Core deposit intangible | 904 | 1,999 | 2,903 | ||||||||
Other assets | 3,756 | 105 | 3,860 | ||||||||
Total assets acquired | $ | 422,378 | $ | (869 | ) | $ | 421,508 | ||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 335,685 | $ | 333 | $ | 336,018 | |||||
FHLB advances | 33,300 | 33,300 | |||||||||
Other liabilities | 1,916 | (120 | ) | 1,796 | |||||||
Total liabilities assumed | 370,901 | 213 | 371,114 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 51,477 | $ | (1,082 | ) | 50,394 | |||||
Consideration paid | 78,454 | ||||||||||
Goodwill recognized | $ | 28,060 | |||||||||
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 further diversified our loan portfolio with commercial and industrial and owner-occupied commercial real estate loans, deployed excess liquidity into higher yielding assets, to positively impact our net interest margin and further leveraged 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 was 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 | |||||||||
There were no purchased credit impaired loans acquired from IFH. For loans acquired from IFH and IDPK, 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 | |||||||||||
IFH | IDPK | ||||||||||
(dollars in thousands) | |||||||||||
Contractual amounts due | $ | 98,320 | $ | 453,987 | |||||||
Cash flows not expected to be collected | — | 3,795 | |||||||||
Expected cash flows | 98,320 | 450,192 | |||||||||
Interest component of expected cash flows | 19,487 | 117,299 | |||||||||
Fair value of acquired loans | $ | 78,833 | $ | 332,893 | |||||||
In accordance with generally accepted accounting principles, there was no carryover of the allowance for loan losses that had been previously recorded by IFH or IDPK. | |||||||||||
The operating results of the Company for the three months ending March 31, 2015 include the operating results of IDPK since the acquisition date. The operating results of the Company for the three months ending March 31, 2014 include the operating results of IFH since the acquisition date. The following table presents the net interest and other income, net income and earnings per share as if the acquisitions of IFH and IDPK were effective as of January 1, 2014. There were no material, nonrecurring adjustments to the pro forma net interest and other income, net income and earnings per share presented below: | |||||||||||
Three months Ended March 31, | |||||||||||
2015 | 2014 | ||||||||||
Net interest and other income | $ | 24,687 | $ | 19,715 | |||||||
Net income | 802 | 3,028 | |||||||||
Basic earnings per share | $ | 0.04 | $ | 0.14 | |||||||
Diluted earnings per share | $ | 0.04 | $ | 0.14 | |||||||
Investment_Securities
Investment Securities | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||
Note 5 — Investment Securities | ||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of securities were as follows: | ||||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 103,997 | $ | 1,718 | $ | (192 | ) | $ | 105,523 | |||||||||||||||||||||||
Mortgage-backed securities | 174,281 | 1,097 | (440 | ) | 174,938 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 278,278 | $ | 2,815 | $ | (632 | ) | $ | 280,461 | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 88,599 | $ | 1,235 | $ | (173 | ) | $ | 89,661 | |||||||||||||||||||||||
Mortgage-backed securities | 112,159 | 432 | (614 | ) | 111,977 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 200,758 | $ | 1,667 | $ | (787 | ) | $ | 201,638 | |||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 77,062 | $ | 848 | $ | (586 | ) | 77,324 | ||||||||||||||||||||||||
Mortgage-backed securities | 126,921 | 65 | (2,168 | ) | 124,818 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 203,983 | $ | 913 | $ | (2,754 | ) | $ | 202,142 | |||||||||||||||||||||||
At March 31, 2015, the Company had $21.9 million in Federal Home Loan Bank (“FHLB”) stock, $5.4 million in Federal Reserve Bank (“FRB”) stock, and $3.3 million in other stock, all carried at cost. During the three months ended March 31, 2015, the Company had net purchases of $13.5 million of FHLB stock through the FHLB stock purchase program. | ||||||||||||||||||||||||||||||||
At March 31, 2015, mortgage-backed securities (“MBS”) with an estimated par value of $59.6 million and a fair value of $61.7 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 $14.9 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. | ||||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||
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 | 48 | $ | 20,818 | $ | (179 | ) | 3 | $ | 1,073 | $ | (13 | ) | 51 | $ | 21,891 | $ | (192 | ) | ||||||||||||||
Mortgage-backed securities | 10 | 21,857 | (66 | ) | 3 | 15,111 | (374 | ) | 13 | 36,968 | (440 | ) | ||||||||||||||||||||
Total | 58 | $ | 42,675 | $ | (245 | ) | 6 | $ | 16,184 | $ | (387 | ) | 64 | $ | 58,859 | $ | (632 | ) | ||||||||||||||
December 31, 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 | 35 | $ | 18,129 | $ | (117 | ) | 16 | $ | 6,510 | $ | (56 | ) | 51 | $ | 24,639 | $ | (173 | ) | ||||||||||||||
Mortgage-backed securities | 7 | 24,353 | (105 | ) | 4 | 18,842 | (509 | ) | 11 | 43,195 | (614 | ) | ||||||||||||||||||||
Total | 42 | $ | 42,482 | $ | (222 | ) | 20 | $ | 25,352 | $ | (565 | ) | 62 | $ | 67,834 | $ | (787 | ) | ||||||||||||||
March 31, 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 | 74 | $ | 36,765 | $ | (476 | ) | 12 | $ | 5,046 | $ | (110 | ) | 86 | $ | 41,811 | $ | (586 | ) | ||||||||||||||
Mortgage-backed securities | 32 | 93,299 | (1,422 | ) | 1 | 12,312 | (746 | ) | 33 | 105,611 | (2,168 | ) | ||||||||||||||||||||
Total | 106 | $ | 130,064 | $ | (1,898 | ) | 13 | $ | 17,358 | $ | (856 | ) | 119 | $ | 147,422 | $ | (2,754 | ) | ||||||||||||||
The amortized cost and estimated fair value of investment securities available for sale at March 31, 2015, by contractual maturity are shown in the table below. | ||||||||||||||||||||||||||||||||
One Year | More than One | More than Five Years | More than | |||||||||||||||||||||||||||||
or Less | Year to Five Years | to Ten Years | Ten Years | Total | ||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 466 | $ | 470 | $ | 21,044 | $ | 21,076 | $ | 35,914 | $ | 36,539 | $ | 46,573 | $ | 47,438 | $ | 103,997 | $ | 105,523 | ||||||||||||
Mortgage-backed securities | — | — | 251 | 255 | 27,988 | 28,208 | 146,042 | 146,475 | 174,281 | 174,938 | ||||||||||||||||||||||
Total investment securities available for sale | 466 | 470 | 21,295 | 21,331 | 63,902 | 64,747 | 192,615 | 193,913 | 278,278 | 280,461 | ||||||||||||||||||||||
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 March 31, 2015, the Company had accumulated other comprehensive income of $2.2 million, or $1.3 million net of tax, compared to accumulated other comprehensive loss of $880,000 or $518,000 net of tax, at December 31, 2014. | ||||||||||||||||||||||||||||||||
Loans_Held_for_Investment
Loans Held for Investment | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
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: | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 2014 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 420,218 | $ | 428,207 | $ | 271,877 | |||||||||||||||||
Commercial owner occupied (1) | 352,351 | 210,995 | 223,848 | ||||||||||||||||||||
SBA | 49,855 | 28,404 | 11,045 | ||||||||||||||||||||
Warehouse facilities | 216,554 | 113,798 | 81,033 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 452,422 | 359,213 | 333,490 | ||||||||||||||||||||
Multi-family | 397,130 | 262,965 | 223,200 | ||||||||||||||||||||
One-to-four family (2) | 116,735 | 122,795 | 141,469 | ||||||||||||||||||||
Construction | 111,704 | 89,682 | 29,857 | ||||||||||||||||||||
Land | 7,243 | 9,088 | 6,170 | ||||||||||||||||||||
Other loans | 6,641 | 3,298 | 3,480 | ||||||||||||||||||||
Total gross loans (3) | 2,130,853 | 1,628,445 | 1,325,469 | ||||||||||||||||||||
Less loans held for sale, net | — | — | — | ||||||||||||||||||||
Total gross loans held for investment | 2,130,853 | 1,628,445 | 1,325,469 | ||||||||||||||||||||
Deferred loan origination costs/(fees) and premiums/(discounts), net | 534 | 177 | (97 | ) | |||||||||||||||||||
Allowance for loan losses | (13,646 | ) | (12,200 | ) | (8,685 | ) | |||||||||||||||||
Loans held for investment, net | $ | 2,117,741 | $ | 1,616,422 | $ | 1,316,687 | |||||||||||||||||
(1) Majority secured by real estate. | |||||||||||||||||||||||
(2) Includes second trust deeds. | |||||||||||||||||||||||
(3) Total gross loans for March 31, 2015 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank (“Canyon National”) loans of $1.2 million, on Palm Desert National Bank (“Palm Desert National”) loans of $1.3 million, on SDTB loans of $151,000, and on IDPK loans of $6.9 million and (ii) the mark-to-market premium on FAB loans of $28,000. | |||||||||||||||||||||||
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 $83.9 million for secured loans and $50.4 million for unsecured loans at March 31, 2015. At March 31, 2015, the Bank’s largest aggregate outstanding balance of loans to one borrower was $44.9 million of secured credit. | |||||||||||||||||||||||
Purchased Credit Impaired | |||||||||||||||||||||||
The following table provides a summary of the Company’s investment in purchased credit impaired loans, acquired from Canyon National, Palm Desert National and IDPK, as of the period indicated: | |||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||
Canyon | Palm Desert | ||||||||||||||||||||||
National | National | IDPK | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 95 | $ | — | $ | 601 | $ | 696 | |||||||||||||||
Commercial owner occupied | 549 | — | 2,388 | 2,937 | |||||||||||||||||||
SBA | — | — | — | — | |||||||||||||||||||
Warehouse facilities | — | — | — | — | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 965 | — | 1,379 | 2,344 | |||||||||||||||||||
Multi-family | — | — | — | — | |||||||||||||||||||
One-to-four family | — | 1 | — | 1 | |||||||||||||||||||
Construction | — | — | — | — | |||||||||||||||||||
Land | — | — | — | — | |||||||||||||||||||
Other loans | — | — | — | — | |||||||||||||||||||
Total purchase credit impaired | $ | 1,609 | $ | 1 | $ | 4,368 | $ | 5,978 | |||||||||||||||
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 March 31, 2015, the Company had $6.0 million of purchased credit impaired loans, of which $1.7 million were placed on nonaccrual status. | |||||||||||||||||||||||
The following table summarizes the accretable yield on the purchased credit impaired for the three months ended March 31, 2015: | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||
Canyon National | Palm Desert National | IDPK | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at the beginning of period | $ | 1,351 | $ | 52 | $ | — | $ | 1,403 | |||||||||||||||
Accretable yield at acquisition | — | — | 602 | 602 | |||||||||||||||||||
Accretion | (47 | ) | — | (30 | ) | (77 | ) | ||||||||||||||||
Disposals and other | — | — | (4 | ) | (4 | ) | |||||||||||||||||
Change in accretable yield | — | — | — | — | |||||||||||||||||||
Balance at the end of period | $ | 1,304 | $ | 52 | $ | 568 | $ | 1,924 | |||||||||||||||
Impaired Loans | |||||||||||||||||||||||
The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated: | |||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||
Contractual | Specific | ||||||||||||||||||||||
Unpaid | Without | Allowance for | Average | Interest | |||||||||||||||||||
Principal | Recorded | With Specific | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Investment | Allowance | Allowance | Loans | Investment | Recognized | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 2,225 | $ | 1,853 | $ | — | $ | 1,853 | $ | — | $ | 618 | $ | — | |||||||||
Commercial owner occupied | 438 | 379 | — | 379 | — | 382 | 7 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 698 | 458 | — | 458 | — | 465 | 12 | ||||||||||||||||
One-to-four family | 254 | 232 | — | 232 | — | 234 | 5 | ||||||||||||||||
Totals | $ | 3,615 | $ | 2,922 | $ | — | $ | 2,922 | $ | — | $ | 1,699 | $ | 24 | |||||||||
Impaired Loans | |||||||||||||||||||||||
Contractual | Specific | ||||||||||||||||||||||
Unpaid | Without | Allowance for | Average | Interest | |||||||||||||||||||
Principal | Recorded | With Specific | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Investment | Allowance | Allowance | Loans | Investment | Recognized | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 11 | $ | — | |||||||||
Commercial owner occupied | 440 | 388 | — | 388 | — | 514 | 46 | ||||||||||||||||
SBA | — | — | — | — | — | 5 | — | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,217 | 848 | — | 848 | — | 908 | 85 | ||||||||||||||||
One-to-four family | 256 | 236 | — | 236 | — | 440 | 17 | ||||||||||||||||
Totals | $ | 1,913 | $ | 1,472 | $ | — | $ | 1,472 | $ | — | $ | 1,878 | $ | 148 | |||||||||
Impaired Loans | |||||||||||||||||||||||
Contractual | Specific | ||||||||||||||||||||||
Unpaid | Without | Allowance for | Average | Interest | |||||||||||||||||||
Principal | Recorded | With Specific | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Investment | Allowance | Allowance | Loans | Investment | Recognized | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 67 | $ | 31 | $ | — | $ | 31 | $ | — | $ | 10 | $ | — | |||||||||
Commercial owner occupied | 870 | 718 | — | 718 | — | 738 | — | ||||||||||||||||
SBA | 246 | 14 | — | 14 | — | 14 | 9 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,894 | 1,327 | — | 1,327 | — | 1,093 | 17 | ||||||||||||||||
One-to-four family | 639 | 593 | 274 | 319 | 104 | 602 | 17 | ||||||||||||||||
Totals | $ | 3,716 | $ | 2,683 | $ | 274 | $ | 2,409 | $ | 104 | $ | 2,457 | $ | 43 | |||||||||
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: | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 2014 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Nonaccruing loans | $ | 2,742 | $ | 1,290 | $ | 2,497 | |||||||||||||||||
Accruing loans | 180 | 182 | 186 | ||||||||||||||||||||
Total impaired loans | $ | 2,922 | $ | 1,472 | $ | 2,683 | |||||||||||||||||
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 $2.7 million at March 31, 2015, $1.3 million at December 31, 2014, and $2.5 million at March 31, 2014. The Company had no loans 90 days or more past due and still accruing at March 31, 2015, December 31, 2014 or March 31, 2014. | |||||||||||||||||||||||
The Company had no new TDRs during the quarter ended March 31, 2015 and March 31, 2014 and had one immaterial TDR outstanding related to a U.S. Small Business Administration (“SBA”) loan. | |||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||
As of March 31, 2015, 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 Portfolio 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 deficiencies 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 or confirm updated valuations of underlying collateral for special mention and classified loans on an annual basis in order to have the most current indication of fair value. Once a loan is identified as impaired, an analysis of the underlying collateral is performed at least quarterly, and corresponding changes in any related valuation allowance are made or balances deemed to be fully uncollectable are charged-off. | |||||||||||||||||||||||
The following tables stratify the loan portfolio by the Company’s internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio as of the periods indicated: | |||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 410,328 | $ | 1,250 | $ | 8,640 | $ | 420,218 | |||||||||||||||
Commercial owner occupied | 340,685 | — | 11,666 | 352,351 | |||||||||||||||||||
SBA | 49,855 | — | — | 49,855 | |||||||||||||||||||
Warehouse facilities | 216,554 | — | — | 216,554 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 446,900 | — | 5,522 | 452,422 | |||||||||||||||||||
Multi-family | 391,690 | 1,954 | 3,486 | 397,130 | |||||||||||||||||||
One-to-four family | 115,780 | — | 955 | 116,735 | |||||||||||||||||||
Construction | 111,469 | — | 235 | 111,704 | |||||||||||||||||||
Land | 7,243 | — | — | 7,243 | |||||||||||||||||||
Other loans | 6,641 | — | — | 6,641 | |||||||||||||||||||
Totals | $ | 2,097,145 | $ | 3,204 | $ | 30,504 | $ | 2,130,853 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 426,379 | $ | — | $ | 1,828 | $ | 428,207 | |||||||||||||||
Commercial owner occupied | 202,390 | — | 8,605 | 210,995 | |||||||||||||||||||
SBA | 28,132 | 272 | — | 28,404 | |||||||||||||||||||
Warehouse facilities | 113,798 | — | — | 113,798 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 355,274 | — | 3,939 | 359,213 | |||||||||||||||||||
Multi-family | 261,956 | 501 | 508 | 262,965 | |||||||||||||||||||
One-to-four family | 122,146 | — | 649 | 122,795 | |||||||||||||||||||
Construction | 89,682 | — | — | 89,682 | |||||||||||||||||||
Land | 9,088 | — | — | 9,088 | |||||||||||||||||||
Other loans | 3,298 | — | — | 3,298 | |||||||||||||||||||
Totals | $ | 1,612,143 | $ | 773 | $ | 15,529 | $ | 1,628,445 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 270,024 | $ | — | $ | 1,853 | $ | 271,877 | |||||||||||||||
Commercial owner occupied | 212,663 | 272 | 10,913 | 223,848 | |||||||||||||||||||
SBA | 11,031 | — | 14 | 11,045 | |||||||||||||||||||
Warehouse facilities | 81,033 | — | — | 81,033 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 328,645 | — | 4,845 | 333,490 | |||||||||||||||||||
Multi-family | 222,178 | 508 | 514 | 223,200 | |||||||||||||||||||
One-to-four family | 140,453 | — | 1,016 | 141,469 | |||||||||||||||||||
Construction | 29,857 | — | — | 29,857 | |||||||||||||||||||
Land | 6,170 | — | — | 6,170 | |||||||||||||||||||
Other loans | 3,478 | — | 2 | 3,480 | |||||||||||||||||||
Totals | $ | 1,305,532 | $ | 780 | $ | 19,157 | $ | 1,325,469 | |||||||||||||||
The following tables set forth delinquencies in the Company’s loan portfolio at the dates indicated: | |||||||||||||||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 417,894 | $ | 146 | $ | — | $ | 2,178 | $ | 420,218 | $ | 2,455 | |||||||||||
Commercial owner occupied | 351,600 | 349 | 375 | 27 | 352,351 | 527 | |||||||||||||||||
SBA | 49,855 | — | — | — | 49,855 | — | |||||||||||||||||
Warehouse facilities | 216,554 | — | — | — | 216,554 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 452,422 | — | — | — | 452,422 | 1,602 | |||||||||||||||||
Multi-family | 397,130 | — | — | — | 397,130 | — | |||||||||||||||||
One-to-four family | 116,533 | 149 | — | 53 | 116,735 | 79 | |||||||||||||||||
Construction | 111,704 | — | — | — | 111,704 | — | |||||||||||||||||
Land | 7,243 | — | — | — | 7,243 | — | |||||||||||||||||
Other loans | 6,640 | 1 | — | — | 6,641 | — | |||||||||||||||||
Totals | $ | 2,127,575 | $ | 645 | $ | 375 | $ | 2,258 | $ | 2,130,853 | $ | 4,663 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 428,183 | $ | — | $ | 24 | $ | — | $ | 428,207 | $ | — | |||||||||||
Commercial owner occupied | 210,995 | — | — | — | 210,995 | 514 | |||||||||||||||||
SBA | 28,404 | — | — | — | 28,404 | — | |||||||||||||||||
Warehouse facilities | 113,798 | — | — | — | 113,798 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 359,213 | — | — | — | 359,213 | 848 | |||||||||||||||||
Multi-family | 262,965 | — | — | — | 262,965 | — | |||||||||||||||||
One-to-four family | 122,722 | 19 | — | 54 | 122,795 | 82 | |||||||||||||||||
Construction | 89,682 | — | — | — | 89,682 | — | |||||||||||||||||
Land | 9,088 | — | — | — | 9,088 | — | |||||||||||||||||
Other loans | 3,297 | 1 | — | — | 3,298 | — | |||||||||||||||||
Totals | $ | 1,628,347 | $ | 20 | $ | 24 | $ | 54 | $ | 1,628,445 | $ | 1,444 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 271,845 | $ | — | $ | 32 | $ | — | $ | 271,877 | $ | 31 | |||||||||||
Commercial owner occupied | 223,402 | — | — | 446 | 223,848 | 864 | |||||||||||||||||
SBA | 10,985 | 46 | — | 14 | 11,045 | 14 | |||||||||||||||||
Warehouse facilities | 81,033 | — | — | — | 81,033 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 332,572 | — | — | 918 | 333,490 | 1,327 | |||||||||||||||||
Multi-family | 223,200 | — | — | — | 223,200 | — | |||||||||||||||||
One-to-four family | 141,348 | 72 | — | 49 | 141,469 | 438 | |||||||||||||||||
Construction | 29,857 | — | — | — | 29,857 | — | |||||||||||||||||
Land | 6,170 | — | — | — | 6,170 | — | |||||||||||||||||
Other loans | 3,480 | — | — | — | 3,480 | — | |||||||||||||||||
Totals | $ | 1,323,892 | $ | 118 | $ | 32 | $ | 1,427 | $ | 1,325,469 | $ | 2,674 | |||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 3 Months Ended | ||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||
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 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 annualized actual trailing charge-off data over intervals of 72, 36, 24, 12 and 6 months. 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 Corporation (“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 and Construction Loans | |||||||||||||||||||||||||||||||||||
The Company’s base ALLL factor for multi-family and non-owner occupied commercial real estate and construction loans is determined by management using the Bank’s annualized actual trailing charge-off data over intervals of 72, 36, 24, 12 and 6 months. 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 annualized actual trailing charge-off data over intervals of 72, 36, 24, 12 and 6 months. 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 | Facilities | non-owner | family | family | loans | |||||||||||||||||||||||||||||
occupied | occupied | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 4,200 | $ | 1,757 | $ | 568 | $ | 546 | $ | 2,007 | $ | 1,060 | $ | 842 | $ | 1,088 | $ | 108 | $ | 24 | $ | 12,200 | |||||||||||||
Charge-offs | (396 | ) | — | — | — | — | — | — | — | — | — | (396 | ) | ||||||||||||||||||||||
Recoveries | 12 | — | — | — | — | — | — | — | — | — | 12 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 1,116 | 96 | (21 | ) | 343 | 124 | 243 | (168 | ) | 122 | (30 | ) | 5 | 1,830 | |||||||||||||||||||||
Balance, March 31, 2015 | $ | 4,932 | $ | 1,853 | $ | 547 | $ | 889 | $ | 2,131 | $ | 1,303 | $ | 674 | $ | 1,210 | $ | 78 | $ | 29 | $ | 13,646 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
General portfolio allocation | 4,932 | 1,853 | 547 | 889 | 2,131 | 1,303 | 674 | 1,210 | 78 | 29 | 13,646 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | 1,853 | 379 | — | — | 458 | — | 232 | — | — | — | 2,922 | ||||||||||||||||||||||||
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 | $ | 418,365 | $ | 351,972 | $ | 49,855 | $ | 216,554 | $ | 451,964 | $ | 397,130 | $ | 116,503 | $ | 111,704 | $ | 7,243 | $ | 6,641 | $ | 2,127,931 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.18 | % | 0.53 | % | 1.1 | % | 0.41 | % | 0.47 | % | 0.33 | % | 0.58 | % | 1.08 | % | 1.08 | % | 0.44 | % | 0.64 | % | |||||||||||||
Total gross loans | $ | 420,218 | $ | 352,351 | $ | 49,855 | $ | 216,554 | $ | 452,422 | $ | 397,130 | $ | 116,735 | $ | 111,704 | $ | 7,243 | $ | 6,641 | $ | 2,130,853 | |||||||||||||
Total allowance to gross loans | 1.17 | % | 0.53 | % | 1.1 | % | 0.41 | % | 0.47 | % | 0.33 | % | 0.58 | % | 1.08 | % | 1.08 | % | 0.44 | % | 0.64 | % | |||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to-four | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | Facilities | 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 | (124 | ) | — | — | — | (365 | ) | — | (12 | ) | — | — | — | (501 | ) | ||||||||||||||||||||
Recoveries | 5 | — | 2 | — | — | — | 30 | — | — | — | 37 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 516 | (64 | ) | 26 | (16 | ) | 564 | (12 | ) | (198 | ) | 187 | (46 | ) | (8 | ) | 949 | ||||||||||||||||||
Balance, March 31, 2014 | $ | 2,365 | $ | 1,754 | $ | 179 | $ | 376 | $ | 1,857 | $ | 805 | $ | 919 | $ | 323 | $ | 81 | $ | 26 | $ | 8,685 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 104 | $ | — | $ | — | $ | — | $ | 104 | |||||||||||||
General portfolio allocation | 2,365 | 1,754 | 179 | 376 | 1,857 | 805 | 815 | 323 | 81 | 26 | 8,581 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | 31 | 718 | 14 | — | 1,327 | — | 593 | — | — | — | 2,683 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 17.54 | % | 0 | % | 0 | % | 0 | % | 3.88 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 271,846 | $ | 223,130 | $ | 11,031 | $ | 81,033 | $ | 332,163 | $ | 223,200 | $ | 140,876 | $ | 29,857 | $ | 6,170 | $ | 3,480 | $ | 1,322,786 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 0.87 | % | 0.79 | % | 1.62 | % | 0.46 | % | 0.56 | % | 0.36 | % | 0.58 | % | 1.08 | % | 1.31 | % | 0.75 | % | 0.65 | % | |||||||||||||
Total gross loans | $ | 271,877 | $ | 223,848 | $ | 11,045 | $ | 81,033 | $ | 333,490 | $ | 223,200 | $ | 141,469 | $ | 29,857 | $ | 6,170 | $ | 3,480 | $ | 1,325,469 | |||||||||||||
Total allowance to gross loans | 0.87 | % | 0.78 | % | 1.62 | % | 0.46 | % | 0.56 | % | 0.36 | % | 0.65 | % | 1.08 | % | 1.31 | % | 0.75 | % | 0.66 | % | |||||||||||||
Subordinated_Debentures
Subordinated Debentures | 3 Months Ended |
Mar. 31, 2015 | |
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 3.00% per annum as of March 31, 2015. | |
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 | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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 | ||||||||||||||||||
March 31, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
Stock options excluded | 967,050 | 700,598 | ||||||||||||||||
The following tables set forth the Company’s unaudited earnings per share calculations for the periods indicated: | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 1,789 | $ | 2,632 | ||||||||||||||
Basic income available to common stockholders | 1,789 | 20,091,924 | $ | 0.09 | 2,632 | 17,041,594 | $ | 0.15 | ||||||||||
Effect of dilutive stock options and warrants | — | 290,908 | — | 334,407 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 1,789 | 20,382,832 | $ | 0.09 | $ | 2,632 | 17,376,001 | $ | 0.15 | ||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 March 31, 2015, December 31, 2014 and March 31, 2014: | |||||||||||||||||
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 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 March 31, 2015 | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 178,371 | $ | 178,371 | $ | — | $ | — | $ | 178,371 | |||||||
Securities available for sale | 280,461 | — | 280,461 | — | 280,461 | ||||||||||||
Federal Reserve Bank, TIB and FHLB stock, at cost | 30,586 | 30,586 | — | — | 30,586 | ||||||||||||
Loans held for investment, net | 2,117,741 | — | — | 2,205,161 | 2,205,161 | ||||||||||||
Accrued interest receivable | 8,769 | 8,769 | — | — | 8,769 | ||||||||||||
Other real estate owned | 997 | — | — | 997 | 997 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 2,043,166 | 1,576,056 | 479,204 | — | 2,055,260 | ||||||||||||
FHLB advances | 300,000 | 300,031 | — | — | 300,031 | ||||||||||||
Other borrowings | 43,434 | — | 45,084 | — | 45,084 | ||||||||||||
Subordinated debentures | 70,310 | — | 69,501 | — | 69,501 | ||||||||||||
Accrued interest payable | 177 | 177 | — | — | 177 | ||||||||||||
Notional | Cost to Cede | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | or Assume | |||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 403,084 | $ | — | $ | 40,308 | $ | — | $ | 40,308 | |||||||
At December 31, 2014 | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 110,925 | $ | 110,925 | $ | — | $ | — | $ | 110,925 | |||||||
Securities available for sale | 201,638 | — | 201,638 | — | 201,638 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 17,067 | 17,067 | — | — | 17,067 | ||||||||||||
Loans held for investment, net | 1,616,422 | — | — | 1,686,046 | 1,686,046 | ||||||||||||
Accrued interest receivable | 7,131 | 7,131 | — | — | 7,131 | ||||||||||||
Other real estate owned | 1,037 | — | — | 1,037 | 1,037 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,630,826 | 1,216,847 | 519,898 | — | 1,736,745 | ||||||||||||
FHLB advances | 70,000 | 70,025 | — | — | 70,025 | ||||||||||||
Other borrowings | 46,643 | — | 48,312 | — | 48,312 | ||||||||||||
Subordinated debentures | 70,310 | — | 33,456 | — | 33,456 | ||||||||||||
Accrued interest payable | 209 | 209 | — | — | 209 | ||||||||||||
Notional | Cost to Cede | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | or Assume | |||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 355,024 | $ | — | $ | 35,502 | $ | — | $ | 35,502 | |||||||
At March 31, 2014 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 124,419 | $ | 124,419 | $ | — | $ | — | $ | 124,419 | |||||||
Securities available for sale | 202,142 | — | 202,142 | — | 202,142 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 14,104 | 14,104 | — | — | 14,104 | ||||||||||||
Loans held for investment, net | 1,316,687 | — | — | 1,392,661 | 1,392,661 | ||||||||||||
Accrued interest receivable | 5,865 | 5,865 | — | — | 5,865 | ||||||||||||
Other real estate owned | 752 | — | — | 752 | 752 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,435,203 | 1,110,877 | 354,437 | — | 1,465,314 | ||||||||||||
FHLB advances | 50,000 | 50,000 | — | — | 50,000 | ||||||||||||
Other borrowings | 45,506 | — | 47,708 | — | 47,708 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,649 | — | 4,649 | ||||||||||||
Accrued interest payable | 168 | 168 | — | — | 168 | ||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 246,014 | $ | — | $ | 24,601 | $ | — | $ | 24,601 | |||||||
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 March 31, 2015, 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: | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Fair Value Measurement Using | Securities at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
Municipal bonds | $ | — | $ | 105,523 | $ | — | $ | 105,523 | |||||||||
Mortgage-backed securities | — | 174,938 | — | 174,938 | |||||||||||||
Total securities available for sale | $ | — | $ | 280,461 | $ | — | $ | 280,461 | |||||||||
March 31, 2014 | |||||||||||||||||
Fair Value Measurement Using | Securities at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
Municipal bonds | $ | — | $ | 77,324 | $ | — | 77,324 | ||||||||||
Mortgage-backed securities | — | 124,818 | — | 124,818 | |||||||||||||
Total securities available for sale | $ | — | $ | 202,142 | $ | — | $ | 202,142 | |||||||||
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: | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 2,742 | $ | 2,742 | |||||||||
Other real estate owned | — | — | 997 | 997 | |||||||||||||
Total assets | $ | — | $ | — | $ | 3,739 | $ | 3,739 | |||||||||
March 31, 2014 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 1,730 | $ | 1,730 | |||||||||
Other real estate owned | — | — | 752 | 752 | |||||||||||||
Total assets | $ | — | $ | — | $ | 2,482 | $ | 2,482 | |||||||||
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: | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Range | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Rate | Maturity | Unobservable | ||||||||||||
Techniques | (years) | Inputs | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||
Business loans: | |||||||||||||||||
Commercial and industrial | $ | 1,853 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.70 | % | 8 | 0-10% | |||||||||
Commercial owner occupied | 379 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.75 | % | 7 | 0-10% | ||||||||||
Real estate loans: | |||||||||||||||||
Commercial non-owner occupied | 458 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 7.00 | % | 12 | 0-15% | ||||||||||
One-to-four family | 52 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 8.00% - 15.00% | 16-May | 0-10% | |||||||||||
Total collateral dependent impaired loans | $ | 2,742 | |||||||||||||||
Other real estate owned | |||||||||||||||||
Land | $ | 711 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | — | — | 0-10% | ||||||||||
One-to-four family | 286 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | — | — | 0-10% | |||||||||||
Total other real estate owned | $ | 997 | |||||||||||||||
March 31, 2014 | |||||||||||||||||
Range | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Rate | Maturity | Unobservable | ||||||||||||
Techniques | (years) | Inputs | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||
Business loans: | |||||||||||||||||
Commercial and industrial | $ | 31 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.00 | % | 3 | 0-10% | |||||||||
Commercial owner occupied | 718 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 7.00-11.75% | 8-Mar | 0-10% | |||||||||||
SBA | 14 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.00 | % | 7 | 0-20% | ||||||||||
Real estate loans: | |||||||||||||||||
Commercial non-owner occupied | 918 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.13-7.00% | 13-Dec | 0-15% | |||||||||||
One-to-four family | 49 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 11.10-15.00% | 15-Jun | 0-10% | |||||||||||
Total collateral dependent impaired loans | $ | 1,730 | |||||||||||||||
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 | |||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 | ||||||||||||
IFH | IDPK | |||||||||||
(dollars in thousands) | ||||||||||||
Contractual amounts due | $ | 98,320 | $ | 453,987 | ||||||||
Cash flows not expected to be collected | — | 3,795 | ||||||||||
Expected cash flows | 98,320 | 450,192 | ||||||||||
Interest component of expected cash flows | 19,487 | 117,299 | ||||||||||
Fair value of acquired loans | $ | 78,833 | $ | 332,893 | ||||||||
Summary of pro forma net interest and other income, net income and earnings per share | ||||||||||||
Three months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Net interest and other income | $ | 24,687 | $ | 19,715 | ||||||||
Net income | 802 | 3,028 | ||||||||||
Basic earnings per share | $ | 0.04 | $ | 0.14 | ||||||||
Diluted earnings per share | $ | 0.04 | $ | 0.14 | ||||||||
Independence Bank | ||||||||||||
Acquisitions | ||||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ||||||||||||
IDBK | Fair Value | Fair | ||||||||||
Book Value | Adjustments | Value | ||||||||||
(dollars in thousands) | ||||||||||||
ASSETS ACQUIRED | ||||||||||||
Cash and cash equivalents | $ | 10,486 | $ | 10,486 | ||||||||
Investment securities | 56,503 | (382 | ) | 56,121 | ||||||||
Loans, gross | 339,502 | (6,609 | ) | 332,893 | ||||||||
Allowance for loan losses | (3,301 | ) | 3,301 | — | ||||||||
Deferred income taxes | 3,252 | 717 | 3,969 | |||||||||
Bank owned life insurance | 11,276 | 11,276 | ||||||||||
Core deposit intangible | 904 | 1,999 | 2,903 | |||||||||
Other assets | 3,756 | 105 | 3,860 | |||||||||
Total assets acquired | $ | 422,378 | $ | (869 | ) | $ | 421,508 | |||||
LIABILITIES ASSUMED | ||||||||||||
Deposits | $ | 335,685 | $ | 333 | $ | 336,018 | ||||||
FHLB advances | 33,300 | 33,300 | ||||||||||
Other liabilities | 1,916 | (120 | ) | 1,796 | ||||||||
Total liabilities assumed | 370,901 | 213 | 371,114 | |||||||||
Excess of assets acquired over liabilities assumed | $ | 51,477 | $ | (1,082 | ) | 50,394 | ||||||
Consideration paid | 78,454 | |||||||||||
Goodwill recognized | $ | 28,060 | ||||||||||
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 | ||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||
Schedule of amortized cost and estimated fair value of securities | ||||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 103,997 | $ | 1,718 | $ | (192 | ) | $ | 105,523 | |||||||||||||||||||||||
Mortgage-backed securities | 174,281 | 1,097 | (440 | ) | 174,938 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 278,278 | $ | 2,815 | $ | (632 | ) | $ | 280,461 | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 88,599 | $ | 1,235 | $ | (173 | ) | $ | 89,661 | |||||||||||||||||||||||
Mortgage-backed securities | 112,159 | 432 | (614 | ) | 111,977 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 200,758 | $ | 1,667 | $ | (787 | ) | $ | 201,638 | |||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 77,062 | $ | 848 | $ | (586 | ) | 77,324 | ||||||||||||||||||||||||
Mortgage-backed securities | 126,921 | 65 | (2,168 | ) | 124,818 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 203,983 | $ | 913 | $ | (2,754 | ) | $ | 202,142 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||
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 | 48 | $ | 20,818 | $ | (179 | ) | 3 | $ | 1,073 | $ | (13 | ) | 51 | $ | 21,891 | $ | (192 | ) | ||||||||||||||
Mortgage-backed securities | 10 | 21,857 | (66 | ) | 3 | 15,111 | (374 | ) | 13 | 36,968 | (440 | ) | ||||||||||||||||||||
Total | 58 | $ | 42,675 | $ | (245 | ) | 6 | $ | 16,184 | $ | (387 | ) | 64 | $ | 58,859 | $ | (632 | ) | ||||||||||||||
December 31, 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 | 35 | $ | 18,129 | $ | (117 | ) | 16 | $ | 6,510 | $ | (56 | ) | 51 | $ | 24,639 | $ | (173 | ) | ||||||||||||||
Mortgage-backed securities | 7 | 24,353 | (105 | ) | 4 | 18,842 | (509 | ) | 11 | 43,195 | (614 | ) | ||||||||||||||||||||
Total | 42 | $ | 42,482 | $ | (222 | ) | 20 | $ | 25,352 | $ | (565 | ) | 62 | $ | 67,834 | $ | (787 | ) | ||||||||||||||
March 31, 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 | 74 | $ | 36,765 | $ | (476 | ) | 12 | $ | 5,046 | $ | (110 | ) | 86 | $ | 41,811 | $ | (586 | ) | ||||||||||||||
Mortgage-backed securities | 32 | 93,299 | (1,422 | ) | 1 | 12,312 | (746 | ) | 33 | 105,611 | (2,168 | ) | ||||||||||||||||||||
Total | 106 | $ | 130,064 | $ | (1,898 | ) | 13 | $ | 17,358 | $ | (856 | ) | 119 | $ | 147,422 | $ | (2,754 | ) | ||||||||||||||
Schedule of amortized cost and estimated fair value of investment securities available for sale by contractual maturity | ||||||||||||||||||||||||||||||||
One Year | More than One | More than Five Years | More than | |||||||||||||||||||||||||||||
or Less | Year to Five Years | to Ten Years | Ten Years | Total | ||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 466 | $ | 470 | $ | 21,044 | $ | 21,076 | $ | 35,914 | $ | 36,539 | $ | 46,573 | $ | 47,438 | $ | 103,997 | $ | 105,523 | ||||||||||||
Mortgage-backed securities | — | — | 251 | 255 | 27,988 | 28,208 | 146,042 | 146,475 | 174,281 | 174,938 | ||||||||||||||||||||||
Total investment securities available for sale | 466 | 470 | 21,295 | 21,331 | 63,902 | 64,747 | 192,615 | 193,913 | 278,278 | 280,461 | ||||||||||||||||||||||
Loans_Held_for_Investment_Tabl
Loans Held for Investment (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Loans Held for Investment | |||||||||||||||||||||||
Schedule of components of loans held for investment | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 2014 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 420,218 | $ | 428,207 | $ | 271,877 | |||||||||||||||||
Commercial owner occupied (1) | 352,351 | 210,995 | 223,848 | ||||||||||||||||||||
SBA | 49,855 | 28,404 | 11,045 | ||||||||||||||||||||
Warehouse facilities | 216,554 | 113,798 | 81,033 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 452,422 | 359,213 | 333,490 | ||||||||||||||||||||
Multi-family | 397,130 | 262,965 | 223,200 | ||||||||||||||||||||
One-to-four family (2) | 116,735 | 122,795 | 141,469 | ||||||||||||||||||||
Construction | 111,704 | 89,682 | 29,857 | ||||||||||||||||||||
Land | 7,243 | 9,088 | 6,170 | ||||||||||||||||||||
Other loans | 6,641 | 3,298 | 3,480 | ||||||||||||||||||||
Total gross loans (3) | 2,130,853 | 1,628,445 | 1,325,469 | ||||||||||||||||||||
Less loans held for sale, net | — | — | — | ||||||||||||||||||||
Total gross loans held for investment | 2,130,853 | 1,628,445 | 1,325,469 | ||||||||||||||||||||
Deferred loan origination costs/(fees) and premiums/(discounts), net | 534 | 177 | (97 | ) | |||||||||||||||||||
Allowance for loan losses | (13,646 | ) | (12,200 | ) | (8,685 | ) | |||||||||||||||||
Loans held for investment, net | $ | 2,117,741 | $ | 1,616,422 | $ | 1,316,687 | |||||||||||||||||
(1) Majority secured by real estate. | |||||||||||||||||||||||
(2) Includes second trust deeds. | |||||||||||||||||||||||
(3) Total gross loans for March 31, 2015 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank (“Canyon National”) loans of $1.2 million, on Palm Desert National Bank (“Palm Desert National”) loans of $1.3 million, on SDTB loans of $151,000, and on IDPK loans of $6.9 million and (ii) the mark-to-market premium on FAB loans of $28,000. | |||||||||||||||||||||||
Summary of Company's investment in purchased credit impaired loans | |||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||
Canyon | Palm Desert | ||||||||||||||||||||||
National | National | IDPK | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 95 | $ | — | $ | 601 | $ | 696 | |||||||||||||||
Commercial owner occupied | 549 | — | 2,388 | 2,937 | |||||||||||||||||||
SBA | — | — | — | — | |||||||||||||||||||
Warehouse facilities | — | — | — | — | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 965 | — | 1,379 | 2,344 | |||||||||||||||||||
Multi-family | — | — | — | — | |||||||||||||||||||
One-to-four family | — | 1 | — | 1 | |||||||||||||||||||
Construction | — | — | — | — | |||||||||||||||||||
Land | — | — | — | — | |||||||||||||||||||
Other loans | — | — | — | — | |||||||||||||||||||
Total purchase credit impaired | $ | 1,609 | $ | 1 | $ | 4,368 | $ | 5,978 | |||||||||||||||
Summary of accretable yield on purchased credit impaired | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||
Canyon National | Palm Desert National | IDPK | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at the beginning of period | $ | 1,351 | $ | 52 | $ | — | $ | 1,403 | |||||||||||||||
Accretable yield at acquisition | — | — | 602 | 602 | |||||||||||||||||||
Accretion | (47 | ) | — | (30 | ) | (77 | ) | ||||||||||||||||
Disposals and other | — | — | (4 | ) | (4 | ) | |||||||||||||||||
Change in accretable yield | — | — | — | — | |||||||||||||||||||
Balance at the end of period | $ | 1,304 | $ | 52 | $ | 568 | $ | 1,924 | |||||||||||||||
Summary of Company's investment in impaired loans | |||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||
Contractual | Specific | ||||||||||||||||||||||
Unpaid | Without | Allowance for | Average | Interest | |||||||||||||||||||
Principal | Recorded | With Specific | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Investment | Allowance | Allowance | Loans | Investment | Recognized | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 2,225 | $ | 1,853 | $ | — | $ | 1,853 | $ | — | $ | 618 | $ | — | |||||||||
Commercial owner occupied | 438 | 379 | — | 379 | — | 382 | 7 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 698 | 458 | — | 458 | — | 465 | 12 | ||||||||||||||||
One-to-four family | 254 | 232 | — | 232 | — | 234 | 5 | ||||||||||||||||
Totals | $ | 3,615 | $ | 2,922 | $ | — | $ | 2,922 | $ | — | $ | 1,699 | $ | 24 | |||||||||
Impaired Loans | |||||||||||||||||||||||
Contractual | Specific | ||||||||||||||||||||||
Unpaid | Without | Allowance for | Average | Interest | |||||||||||||||||||
Principal | Recorded | With Specific | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Investment | Allowance | Allowance | Loans | Investment | Recognized | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 11 | $ | — | |||||||||
Commercial owner occupied | 440 | 388 | — | 388 | — | 514 | 46 | ||||||||||||||||
SBA | — | — | — | — | — | 5 | — | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,217 | 848 | — | 848 | — | 908 | 85 | ||||||||||||||||
One-to-four family | 256 | 236 | — | 236 | — | 440 | 17 | ||||||||||||||||
Totals | $ | 1,913 | $ | 1,472 | $ | — | $ | 1,472 | $ | — | $ | 1,878 | $ | 148 | |||||||||
Impaired Loans | |||||||||||||||||||||||
Contractual | Specific | ||||||||||||||||||||||
Unpaid | Without | Allowance for | Average | Interest | |||||||||||||||||||
Principal | Recorded | With Specific | Specific | Impaired | Recorded | Income | |||||||||||||||||
Balance | Investment | Allowance | Allowance | Loans | Investment | Recognized | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 67 | $ | 31 | $ | — | $ | 31 | $ | — | $ | 10 | $ | — | |||||||||
Commercial owner occupied | 870 | 718 | — | 718 | — | 738 | — | ||||||||||||||||
SBA | 246 | 14 | — | 14 | — | 14 | 9 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,894 | 1,327 | — | 1,327 | — | 1,093 | 17 | ||||||||||||||||
One-to-four family | 639 | 593 | 274 | 319 | 104 | 602 | 17 | ||||||||||||||||
Totals | $ | 3,716 | $ | 2,683 | $ | 274 | $ | 2,409 | $ | 104 | $ | 2,457 | $ | 43 | |||||||||
Summary of additional detail on components of impaired loans | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 2014 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Nonaccruing loans | $ | 2,742 | $ | 1,290 | $ | 2,497 | |||||||||||||||||
Accruing loans | 180 | 182 | 186 | ||||||||||||||||||||
Total impaired loans | $ | 2,922 | $ | 1,472 | $ | 2,683 | |||||||||||||||||
Summary of loan portfolio by the Company's internal risk grading system | |||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 410,328 | $ | 1,250 | $ | 8,640 | $ | 420,218 | |||||||||||||||
Commercial owner occupied | 340,685 | — | 11,666 | 352,351 | |||||||||||||||||||
SBA | 49,855 | — | — | 49,855 | |||||||||||||||||||
Warehouse facilities | 216,554 | — | — | 216,554 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 446,900 | — | 5,522 | 452,422 | |||||||||||||||||||
Multi-family | 391,690 | 1,954 | 3,486 | 397,130 | |||||||||||||||||||
One-to-four family | 115,780 | — | 955 | 116,735 | |||||||||||||||||||
Construction | 111,469 | — | 235 | 111,704 | |||||||||||||||||||
Land | 7,243 | — | — | 7,243 | |||||||||||||||||||
Other loans | 6,641 | — | — | 6,641 | |||||||||||||||||||
Totals | $ | 2,097,145 | $ | 3,204 | $ | 30,504 | $ | 2,130,853 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 426,379 | $ | — | $ | 1,828 | $ | 428,207 | |||||||||||||||
Commercial owner occupied | 202,390 | — | 8,605 | 210,995 | |||||||||||||||||||
SBA | 28,132 | 272 | — | 28,404 | |||||||||||||||||||
Warehouse facilities | 113,798 | — | — | 113,798 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 355,274 | — | 3,939 | 359,213 | |||||||||||||||||||
Multi-family | 261,956 | 501 | 508 | 262,965 | |||||||||||||||||||
One-to-four family | 122,146 | — | 649 | 122,795 | |||||||||||||||||||
Construction | 89,682 | — | — | 89,682 | |||||||||||||||||||
Land | 9,088 | — | — | 9,088 | |||||||||||||||||||
Other loans | 3,298 | — | — | 3,298 | |||||||||||||||||||
Totals | $ | 1,612,143 | $ | 773 | $ | 15,529 | $ | 1,628,445 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 270,024 | $ | — | $ | 1,853 | $ | 271,877 | |||||||||||||||
Commercial owner occupied | 212,663 | 272 | 10,913 | 223,848 | |||||||||||||||||||
SBA | 11,031 | — | 14 | 11,045 | |||||||||||||||||||
Warehouse facilities | 81,033 | — | — | 81,033 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 328,645 | — | 4,845 | 333,490 | |||||||||||||||||||
Multi-family | 222,178 | 508 | 514 | 223,200 | |||||||||||||||||||
One-to-four family | 140,453 | — | 1,016 | 141,469 | |||||||||||||||||||
Construction | 29,857 | — | — | 29,857 | |||||||||||||||||||
Land | 6,170 | — | — | 6,170 | |||||||||||||||||||
Other loans | 3,478 | — | 2 | 3,480 | |||||||||||||||||||
Totals | $ | 1,305,532 | $ | 780 | $ | 19,157 | $ | 1,325,469 | |||||||||||||||
Schedule of delinquencies in the Company's loan portfolio | |||||||||||||||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 417,894 | $ | 146 | $ | — | $ | 2,178 | $ | 420,218 | $ | 2,455 | |||||||||||
Commercial owner occupied | 351,600 | 349 | 375 | 27 | 352,351 | 527 | |||||||||||||||||
SBA | 49,855 | — | — | — | 49,855 | — | |||||||||||||||||
Warehouse facilities | 216,554 | — | — | — | 216,554 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 452,422 | — | — | — | 452,422 | 1,602 | |||||||||||||||||
Multi-family | 397,130 | — | — | — | 397,130 | — | |||||||||||||||||
One-to-four family | 116,533 | 149 | — | 53 | 116,735 | 79 | |||||||||||||||||
Construction | 111,704 | — | — | — | 111,704 | — | |||||||||||||||||
Land | 7,243 | — | — | — | 7,243 | — | |||||||||||||||||
Other loans | 6,640 | 1 | — | — | 6,641 | — | |||||||||||||||||
Totals | $ | 2,127,575 | $ | 645 | $ | 375 | $ | 2,258 | $ | 2,130,853 | $ | 4,663 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 428,183 | $ | — | $ | 24 | $ | — | $ | 428,207 | $ | — | |||||||||||
Commercial owner occupied | 210,995 | — | — | — | 210,995 | 514 | |||||||||||||||||
SBA | 28,404 | — | — | — | 28,404 | — | |||||||||||||||||
Warehouse facilities | 113,798 | — | — | — | 113,798 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 359,213 | — | — | — | 359,213 | 848 | |||||||||||||||||
Multi-family | 262,965 | — | — | — | 262,965 | — | |||||||||||||||||
One-to-four family | 122,722 | 19 | — | 54 | 122,795 | 82 | |||||||||||||||||
Construction | 89,682 | — | — | — | 89,682 | — | |||||||||||||||||
Land | 9,088 | — | — | — | 9,088 | — | |||||||||||||||||
Other loans | 3,297 | 1 | — | — | 3,298 | — | |||||||||||||||||
Totals | $ | 1,628,347 | $ | 20 | $ | 24 | $ | 54 | $ | 1,628,445 | $ | 1,444 | |||||||||||
Days Past Due | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 271,845 | $ | — | $ | 32 | $ | — | $ | 271,877 | $ | 31 | |||||||||||
Commercial owner occupied | 223,402 | — | — | 446 | 223,848 | 864 | |||||||||||||||||
SBA | 10,985 | 46 | — | 14 | 11,045 | 14 | |||||||||||||||||
Warehouse facilities | 81,033 | — | — | — | 81,033 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 332,572 | — | — | 918 | 333,490 | 1,327 | |||||||||||||||||
Multi-family | 223,200 | — | — | — | 223,200 | — | |||||||||||||||||
One-to-four family | 141,348 | 72 | — | 49 | 141,469 | 438 | |||||||||||||||||
Construction | 29,857 | — | — | — | 29,857 | — | |||||||||||||||||
Land | 6,170 | — | — | — | 6,170 | — | |||||||||||||||||
Other loans | 3,480 | — | — | — | 3,480 | — | |||||||||||||||||
Totals | $ | 1,323,892 | $ | 118 | $ | 32 | $ | 1,427 | $ | 1,325,469 | $ | 2,674 | |||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||
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 | Facilities | non-owner | family | family | loans | |||||||||||||||||||||||||||||
occupied | occupied | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 4,200 | $ | 1,757 | $ | 568 | $ | 546 | $ | 2,007 | $ | 1,060 | $ | 842 | $ | 1,088 | $ | 108 | $ | 24 | $ | 12,200 | |||||||||||||
Charge-offs | (396 | ) | — | — | — | — | — | — | — | — | — | (396 | ) | ||||||||||||||||||||||
Recoveries | 12 | — | — | — | — | — | — | — | — | — | 12 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 1,116 | 96 | (21 | ) | 343 | 124 | 243 | (168 | ) | 122 | (30 | ) | 5 | 1,830 | |||||||||||||||||||||
Balance, March 31, 2015 | $ | 4,932 | $ | 1,853 | $ | 547 | $ | 889 | $ | 2,131 | $ | 1,303 | $ | 674 | $ | 1,210 | $ | 78 | $ | 29 | $ | 13,646 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
General portfolio allocation | 4,932 | 1,853 | 547 | 889 | 2,131 | 1,303 | 674 | 1,210 | 78 | 29 | 13,646 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | 1,853 | 379 | — | — | 458 | — | 232 | — | — | — | 2,922 | ||||||||||||||||||||||||
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 | $ | 418,365 | $ | 351,972 | $ | 49,855 | $ | 216,554 | $ | 451,964 | $ | 397,130 | $ | 116,503 | $ | 111,704 | $ | 7,243 | $ | 6,641 | $ | 2,127,931 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.18 | % | 0.53 | % | 1.1 | % | 0.41 | % | 0.47 | % | 0.33 | % | 0.58 | % | 1.08 | % | 1.08 | % | 0.44 | % | 0.64 | % | |||||||||||||
Total gross loans | $ | 420,218 | $ | 352,351 | $ | 49,855 | $ | 216,554 | $ | 452,422 | $ | 397,130 | $ | 116,735 | $ | 111,704 | $ | 7,243 | $ | 6,641 | $ | 2,130,853 | |||||||||||||
Total allowance to gross loans | 1.17 | % | 0.53 | % | 1.1 | % | 0.41 | % | 0.47 | % | 0.33 | % | 0.58 | % | 1.08 | % | 1.08 | % | 0.44 | % | 0.64 | % | |||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi- | One-to-four | Construction | Land | Other | Total | |||||||||||||||||||||||||
and industrial | owner | Facilities | 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 | (124 | ) | — | — | — | (365 | ) | — | (12 | ) | — | — | — | (501 | ) | ||||||||||||||||||||
Recoveries | 5 | — | 2 | — | — | — | 30 | — | — | — | 37 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 516 | (64 | ) | 26 | (16 | ) | 564 | (12 | ) | (198 | ) | 187 | (46 | ) | (8 | ) | 949 | ||||||||||||||||||
Balance, March 31, 2014 | $ | 2,365 | $ | 1,754 | $ | 179 | $ | 376 | $ | 1,857 | $ | 805 | $ | 919 | $ | 323 | $ | 81 | $ | 26 | $ | 8,685 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 104 | $ | — | $ | — | $ | — | $ | 104 | |||||||||||||
General portfolio allocation | 2,365 | 1,754 | 179 | 376 | 1,857 | 805 | 815 | 323 | 81 | 26 | 8,581 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | 31 | 718 | 14 | — | 1,327 | — | 593 | — | — | — | 2,683 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 17.54 | % | 0 | % | 0 | % | 0 | % | 3.88 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 271,846 | $ | 223,130 | $ | 11,031 | $ | 81,033 | $ | 332,163 | $ | 223,200 | $ | 140,876 | $ | 29,857 | $ | 6,170 | $ | 3,480 | $ | 1,322,786 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 0.87 | % | 0.79 | % | 1.62 | % | 0.46 | % | 0.56 | % | 0.36 | % | 0.58 | % | 1.08 | % | 1.31 | % | 0.75 | % | 0.65 | % | |||||||||||||
Total gross loans | $ | 271,877 | $ | 223,848 | $ | 11,045 | $ | 81,033 | $ | 333,490 | $ | 223,200 | $ | 141,469 | $ | 29,857 | $ | 6,170 | $ | 3,480 | $ | 1,325,469 | |||||||||||||
Total allowance to gross loans | 0.87 | % | 0.78 | % | 1.62 | % | 0.46 | % | 0.56 | % | 0.36 | % | 0.65 | % | 1.08 | % | 1.31 | % | 0.75 | % | 0.66 | % | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Earnings Per Share | ||||||||||||||||||
Schedule of number of stock options excluded from the computations of diluted earnings per share | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
March 31, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
Stock options excluded | 967,050 | 700,598 | ||||||||||||||||
Schedule of Company's unaudited earnings per share calculations | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
Net | Per Share | Net | Per Share | |||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 1,789 | $ | 2,632 | ||||||||||||||
Basic income available to common stockholders | 1,789 | 20,091,924 | $ | 0.09 | 2,632 | 17,041,594 | $ | 0.15 | ||||||||||
Effect of dilutive stock options and warrants | — | 290,908 | — | 334,407 | ||||||||||||||
Diluted income available to common stockholders plus assumed conversions | $ | 1,789 | 20,382,832 | $ | 0.09 | $ | 2,632 | 17,376,001 | $ | 0.15 | ||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Schedule of carrying amount and estimated fair value of financial instruments | |||||||||||||||||
At March 31, 2015 | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 178,371 | $ | 178,371 | $ | — | $ | — | $ | 178,371 | |||||||
Securities available for sale | 280,461 | — | 280,461 | — | 280,461 | ||||||||||||
Federal Reserve Bank, TIB and FHLB stock, at cost | 30,586 | 30,586 | — | — | 30,586 | ||||||||||||
Loans held for investment, net | 2,117,741 | — | — | 2,205,161 | 2,205,161 | ||||||||||||
Accrued interest receivable | 8,769 | 8,769 | — | — | 8,769 | ||||||||||||
Other real estate owned | 997 | — | — | 997 | 997 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 2,043,166 | 1,576,056 | 479,204 | — | 2,055,260 | ||||||||||||
FHLB advances | 300,000 | 300,031 | — | — | 300,031 | ||||||||||||
Other borrowings | 43,434 | — | 45,084 | — | 45,084 | ||||||||||||
Subordinated debentures | 70,310 | — | 69,501 | — | 69,501 | ||||||||||||
Accrued interest payable | 177 | 177 | — | — | 177 | ||||||||||||
At December 31, 2014 | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 110,925 | $ | 110,925 | $ | — | $ | — | $ | 110,925 | |||||||
Securities available for sale | 201,638 | — | 201,638 | — | 201,638 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 17,067 | 17,067 | — | — | 17,067 | ||||||||||||
Loans held for investment, net | 1,616,422 | — | — | 1,686,046 | 1,686,046 | ||||||||||||
Accrued interest receivable | 7,131 | 7,131 | — | — | 7,131 | ||||||||||||
Other real estate owned | 1,037 | — | — | 1,037 | 1,037 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,630,826 | 1,216,847 | 519,898 | — | 1,736,745 | ||||||||||||
FHLB advances | 70,000 | 70,025 | — | — | 70,025 | ||||||||||||
Other borrowings | 46,643 | — | 48,312 | — | 48,312 | ||||||||||||
Subordinated debentures | 70,310 | — | 33,456 | — | 33,456 | ||||||||||||
Accrued interest payable | 209 | 209 | — | — | 209 | ||||||||||||
At March 31, 2014 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 124,419 | $ | 124,419 | $ | — | $ | — | $ | 124,419 | |||||||
Securities available for sale | 202,142 | — | 202,142 | — | 202,142 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 14,104 | 14,104 | — | — | 14,104 | ||||||||||||
Loans held for investment, net | 1,316,687 | — | — | 1,392,661 | 1,392,661 | ||||||||||||
Accrued interest receivable | 5,865 | 5,865 | — | — | 5,865 | ||||||||||||
Other real estate owned | 752 | — | — | 752 | 752 | ||||||||||||
SWD | |||||||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,435,203 | 1,110,877 | 354,437 | — | 1,465,314 | ||||||||||||
FHLB advances | 50,000 | 50,000 | — | — | 50,000 | ||||||||||||
Other borrowings | 45,506 | — | 47,708 | — | 47,708 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,649 | — | 4,649 | ||||||||||||
Accrued interest payable | 168 | 168 | — | — | 168 | ||||||||||||
Schedule of Off-balance sheet commitments and standby letters of credit | |||||||||||||||||
Notional | Cost to Cede | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | or Assume | |||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 403,084 | $ | — | $ | 40,308 | $ | — | $ | 40,308 | |||||||
Notional | Cost to Cede | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | or Assume | |||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 355,024 | $ | — | $ | 35,502 | $ | — | $ | 35,502 | |||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 246,014 | $ | — | $ | 24,601 | $ | — | $ | 24,601 | |||||||
Schedule of Company's financial instruments measured at fair value on a recurring basis | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Fair Value Measurement Using | Securities at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
Municipal bonds | $ | — | $ | 105,523 | $ | — | $ | 105,523 | |||||||||
Mortgage-backed securities | — | 174,938 | — | 174,938 | |||||||||||||
Total securities available for sale | $ | — | $ | 280,461 | $ | — | $ | 280,461 | |||||||||
March 31, 2014 | |||||||||||||||||
Fair Value Measurement Using | Securities at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
Municipal bonds | $ | — | $ | 77,324 | $ | — | 77,324 | ||||||||||
Mortgage-backed securities | — | 124,818 | — | 124,818 | |||||||||||||
Total securities available for sale | $ | — | $ | 202,142 | $ | — | $ | 202,142 | |||||||||
Schedule of Company's assets measured at fair value on a non-recurring basis | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 2,742 | $ | 2,742 | |||||||||
Other real estate owned | — | — | 997 | 997 | |||||||||||||
Total assets | $ | — | $ | — | $ | 3,739 | $ | 3,739 | |||||||||
March 31, 2014 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 1,730 | $ | 1,730 | |||||||||
Other real estate owned | — | — | 752 | 752 | |||||||||||||
Total assets | $ | — | $ | — | $ | 2,482 | $ | 2,482 | |||||||||
Schedule of quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Range | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Rate | Maturity | Unobservable | ||||||||||||
Techniques | (years) | Inputs | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||
Business loans: | |||||||||||||||||
Commercial and industrial | $ | 1,853 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.70 | % | 8 | 0-10% | |||||||||
Commercial owner occupied | 379 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.75 | % | 7 | 0-10% | ||||||||||
Real estate loans: | |||||||||||||||||
Commercial non-owner occupied | 458 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 7.00 | % | 12 | 0-15% | ||||||||||
One-to-four family | 52 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 8.00% - 15.00% | 16-May | 0-10% | |||||||||||
Total collateral dependent impaired loans | $ | 2,742 | |||||||||||||||
Other real estate owned | |||||||||||||||||
Land | $ | 711 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | — | — | 0-10% | ||||||||||
One-to-four family | 286 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | — | — | 0-10% | |||||||||||
Total other real estate owned | $ | 997 | |||||||||||||||
March 31, 2014 | |||||||||||||||||
Range | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Rate | Maturity | Unobservable | ||||||||||||
Techniques | (years) | Inputs | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||
Business loans: | |||||||||||||||||
Commercial and industrial | $ | 31 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.00 | % | 3 | 0-10% | |||||||||
Commercial owner occupied | 718 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 7.00-11.75% | 8-Mar | 0-10% | |||||||||||
SBA | 14 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.00 | % | 7 | 0-20% | ||||||||||
Real estate loans: | |||||||||||||||||
Commercial non-owner occupied | 918 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 6.13-7.00% | 13-Dec | 0-15% | |||||||||||
One-to-four family | 49 | Collateral valuation | Management adjustment to reflect current conditions and selling costs | 11.10-15.00% | 15-Jun | 0-10% | |||||||||||
Total collateral dependent impaired loans | $ | 1,730 | |||||||||||||||
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 | |||||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (Core deposit) | 3 Months Ended |
Mar. 31, 2015 | |
Minimum | |
Significant Accounting Policies | |
Estimated useful lives | 6 years |
Maximum | |
Significant Accounting Policies | |
Estimated useful lives | 10 years |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 26, 2015 | Jan. 30, 2014 | Dec. 31, 2014 | |
item | |||||
Acquisitions | |||||
Delinquent loans or adversely classified assets | $4,663,000 | $2,674,000 | $1,444,000 | ||
LIABILITIES ASSUMED | |||||
Goodwill recognized | 51,010,000 | 22,950,000 | 22,950,000 | ||
Total purchase credit impaired loans | 5,978,000 | ||||
Pro forma net interest and other income, net income and earnings per share | |||||
Net interest and other income | 24,687,000 | 19,715,000 | |||
Net income | 802,000 | 3,028,000 | |||
Basic earnings per share (in dollars per share) | $0.04 | $0.14 | |||
Diluted earnings per share (in dollars per share) | $0.04 | $0.14 | |||
Independence Bank | |||||
Acquisitions | |||||
Cash consideration for common stockholders | 6,100,000 | ||||
Cash consideration for holders of stock options and warrants | 1,500,000 | ||||
Number of shares of common stock issued as consideration | 4,480,645 | ||||
Value of shares of common stock issued as consideration | 70,900,000 | ||||
Closing stock price of common stock | $15.83 | ||||
ASSETS ACQUIRED | |||||
Cash and cash equivalents | 10,486,000 | ||||
Investment securities | 56,121,000 | ||||
Loans, gross | 332,893,000 | ||||
Deferred income taxes | 3,969,000 | ||||
Bank owned life insurance | 11,276,000 | ||||
Core deposit intangible | 2,903,000 | ||||
Other assets | 3,860,000 | ||||
Total assets acquired | 421,508,000 | ||||
LIABILITIES ASSUMED | |||||
Deposits | 336,018,000 | ||||
FHLB advances | 33,300,000 | ||||
Other liabilities | 1,796,000 | ||||
Total liabilities assumed | 371,114,000 | ||||
Excess of assets acquired over liabilities assumed | 50,394,000 | ||||
Consideration paid | 78,454,000 | ||||
Goodwill recognized | 28,060,000 | ||||
Total purchase credit impaired loans | 4,368,000 | ||||
Independence Bank | Acquired Loans | |||||
Contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | |||||
Contractual amounts due | 453,987,000 | ||||
Cash flows not expected to be collected | 3,795,000 | ||||
Expected cash flows | 450,192,000 | ||||
Interest component of expected cash flows | 117,299,000 | ||||
Fair value of acquired loans | 332,893,000 | ||||
Independence Bank | As initially reported | |||||
ASSETS ACQUIRED | |||||
Cash and cash equivalents | 10,486,000 | ||||
Investment securities | 56,503,000 | ||||
Loans, gross | 339,502,000 | ||||
Allowance for loan losses | -3,301,000 | ||||
Deferred income taxes | 3,252,000 | ||||
Bank owned life insurance | 11,276,000 | ||||
Core deposit intangible | 904,000 | ||||
Other assets | 3,756,000 | ||||
Total assets acquired | 422,378,000 | ||||
LIABILITIES ASSUMED | |||||
Deposits | 335,685,000 | ||||
FHLB advances | 33,300,000 | ||||
Other liabilities | 1,916,000 | ||||
Total liabilities assumed | 370,901,000 | ||||
Excess of assets acquired over liabilities assumed | 51,477,000 | ||||
Independence Bank | Fair Value Adjustments | |||||
ASSETS ACQUIRED | |||||
Investment securities | -382,000 | ||||
Loans, gross | -6,609,000 | ||||
Allowance for loan losses | 3,301,000 | ||||
Deferred income taxes | 717,000 | ||||
Core deposit intangible | 1,999,000 | ||||
Other assets | 105,000 | ||||
Total assets acquired | -869,000 | ||||
LIABILITIES ASSUMED | |||||
Deposits | 333,000 | ||||
Other liabilities | -120,000 | ||||
Total liabilities assumed | 213,000 | ||||
Excess of assets acquired over liabilities assumed | -1,082,000 | ||||
Infinity Franchise Holdings Acquisition | |||||
Acquisitions | |||||
Delinquent loans or adversely classified assets | 0 | ||||
Cash consideration | 8,300,000 | ||||
Number of shares of common stock issued as consideration | 562,469 | ||||
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 | ||||
Number of entities in business combination | 2 | ||||
ASSETS ACQUIRED | |||||
Cash and cash equivalents | 555,000 | ||||
Loans, gross | 78,833,000 | ||||
Other assets | 776,000 | ||||
Total assets acquired | 80,164,000 | ||||
LIABILITIES ASSUMED | |||||
Bank loan | 67,617,000 | ||||
Accrued compensation | 495,000 | ||||
Other liabilities | 214,000 | ||||
Total liabilities assumed | 68,326,000 | ||||
Excess of assets acquired over liabilities assumed | 11,838,000 | ||||
Consideration paid | 17,360,000 | ||||
Goodwill recognized | 5,522,000 | ||||
Total purchase credit impaired loans | 0 | ||||
Infinity Franchise Holdings Acquisition | Acquired Loans | |||||
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 | ||||
Expected cash flows | 98,320,000 | ||||
Interest component of expected cash flows | 19,487,000 | ||||
Fair value of acquired loans | 78,833,000 | ||||
Infinity Franchise Holdings Acquisition | As initially reported | |||||
ASSETS ACQUIRED | |||||
Cash and cash equivalents | 555,000 | ||||
Loans, gross | 78,833,000 | ||||
Deferred loan costs | 1,082,000 | ||||
Allowance for loan losses | -268,000 | ||||
Other assets | 776,000 | ||||
Total assets acquired | 80,978,000 | ||||
LIABILITIES ASSUMED | |||||
Bank loan | 67,617,000 | ||||
Accrued compensation | 495,000 | ||||
Other liabilities | 214,000 | ||||
Total liabilities assumed | 68,326,000 | ||||
Excess of assets acquired over liabilities assumed | 12,652,000 | ||||
Infinity Franchise Holdings Acquisition | Fair Value Adjustments | |||||
ASSETS ACQUIRED | |||||
Deferred loan costs | -1,082,000 | ||||
Allowance for loan losses | 268,000 | ||||
Total assets acquired | -814,000 | ||||
LIABILITIES ASSUMED | |||||
Excess of assets acquired over liabilities assumed | ($814,000) | ||||
Maximum | |||||
LIABILITIES ASSUMED | |||||
Extension period for measurement of fair values | 1 year |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
item | |||
Investment securities available for sale: | |||
Amortized Cost | $278,278,000 | $200,758,000 | $203,983,000 |
Unrealized Gain | 2,815,000 | 1,667,000 | 913,000 |
Unrealized Loss | -632,000 | -787,000 | -2,754,000 |
Total | 280,461,000 | 201,638,000 | 202,142,000 |
Equities held at cost, Estimated Fair Value | |||
FHLB stock | 21,900,000 | ||
FRB stock | 5,400,000 | ||
Other stock | 3,300,000 | ||
Additional disclosures | |||
Excess FHLB stock with the entity repurchased by FHLB through their stock repurchase program | 13,500,000 | ||
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 | 14,900,000 | ||
Municipal bonds | |||
Investment securities available for sale: | |||
Amortized Cost | 103,997,000 | 88,599,000 | 77,062,000 |
Unrealized Gain | 1,718,000 | 1,235,000 | 848,000 |
Unrealized Loss | -192,000 | -173,000 | -586,000 |
Total | 105,523,000 | 89,661,000 | 77,324,000 |
Mortgage-backed securities | |||
Investment securities available for sale: | |||
Amortized Cost | 174,281,000 | 112,159,000 | 126,921,000 |
Unrealized Gain | 1,097,000 | 432,000 | 65,000 |
Unrealized Loss | -440,000 | -614,000 | -2,168,000 |
Total | 174,938,000 | 111,977,000 | 124,818,000 |
Additional disclosures | |||
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 59,600,000 | ||
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $61,700,000 |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | item | item | item |
Investment Securities Available-for-Sale, Total temporary impaired securities | |||
Less than 12 months, Number | 58 | 42 | 106 |
Less than 12 months, Fair Value | $42,675 | $42,482 | $130,064 |
Less than 12 months, Gross Unrealized Holding Losses | -245 | -222 | -1,898 |
12 months or more, Number | 6 | 20 | 13 |
12 months or more, Fair Value | 16,184 | 25,352 | 17,358 |
12 months or more, Gross Unrealized Holding Losses | -387 | -565 | -856 |
Total, Number | 64 | 62 | 119 |
Total, Fair Value | 58,859 | 67,834 | 147,422 |
Total, Gross Unrealized Holding Losses | -632 | -787 | -2,754 |
Municipal bonds | |||
Investment Securities Available-for-Sale, Total temporary impaired securities | |||
Less than 12 months, Number | 48 | 35 | 74 |
Less than 12 months, Fair Value | 20,818 | 18,129 | 36,765 |
Less than 12 months, Gross Unrealized Holding Losses | -179 | -117 | -476 |
12 months or more, Number | 3 | 16 | 12 |
12 months or more, Fair Value | 1,073 | 6,510 | 5,046 |
12 months or more, Gross Unrealized Holding Losses | -13 | -56 | -110 |
Total, Number | 51 | 51 | 86 |
Total, Fair Value | 21,891 | 24,639 | 41,811 |
Total, Gross Unrealized Holding Losses | -192 | -173 | -586 |
Mortgage-backed securities | |||
Investment Securities Available-for-Sale, Total temporary impaired securities | |||
Less than 12 months, Number | 10 | 7 | 32 |
Less than 12 months, Fair Value | 21,857 | 24,353 | 93,299 |
Less than 12 months, Gross Unrealized Holding Losses | -66 | -105 | -1,422 |
12 months or more, Number | 3 | 4 | 1 |
12 months or more, Fair Value | 15,111 | 18,842 | 12,312 |
12 months or more, Gross Unrealized Holding Losses | -374 | -509 | -746 |
Total, Number | 13 | 11 | 33 |
Total, Fair Value | 36,968 | 43,195 | 105,611 |
Total, Gross Unrealized Holding Losses | ($440) | ($614) | ($2,168) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Investment securities available for sale, Amortized Cost | |||
More than One Year to Five Years | $21,295,000 | ||
More than Five Years to Ten Years | 63,902,000 | ||
More than Ten Years | 192,615,000 | ||
Total | 278,278,000 | ||
One Year or Less | 466,000 | ||
Investment securities available for sale, Fair Value | |||
More than One Year to Five Years | 21,331,000 | ||
More than Five Years to Ten Years | 64,747,000 | ||
More than Ten Years | 193,913,000 | ||
Total | 280,461,000 | 201,638,000 | 202,142,000 |
One Year or Less | 470,000 | ||
Stock, Fair Value | |||
FHLB stock | 21,900,000 | ||
FRB stock | 5,400,000 | ||
Accumulated other comprehensive income (loss) | 2,200,000 | 880,000 | |
Accumulated other comprehensive income, net of tax | 1,285,000 | 518,000 | -1,084,000 |
Municipal bonds | |||
Investment securities available for sale, Amortized Cost | |||
More than One Year to Five Years | 21,044,000 | ||
More than Five Years to Ten Years | 35,914,000 | ||
More than Ten Years | 46,573,000 | ||
Total | 103,997,000 | ||
One Year or Less | 466,000 | ||
Investment securities available for sale, Fair Value | |||
More than One Year to Five Years | 21,076,000 | ||
More than Five Years to Ten Years | 36,539,000 | ||
More than Ten Years | 47,438,000 | ||
Total | 105,523,000 | 89,661,000 | 77,324,000 |
One Year or Less | 470,000 | ||
Mortgage-backed securities | |||
Investment securities available for sale, Amortized Cost | |||
More than One Year to Five Years | 251,000 | ||
More than Five Years to Ten Years | 27,988,000 | ||
More than Ten Years | 146,042,000 | ||
Total | 174,281,000 | ||
Investment securities available for sale, Fair Value | |||
More than One Year to Five Years | 255,000 | ||
More than Five Years to Ten Years | 28,208,000 | ||
More than Ten Years | 146,475,000 | ||
Total | $174,938,000 | $111,977,000 | $124,818,000 |
Loans_Held_for_Investment_Deta
Loans Held for Investment (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Loans Held for Investment | ||||
Total gross loans | 2,130,853,000 | $1,628,445,000 | $1,325,469,000 | |
Total gross loans held for investment | 2,130,853,000 | 1,628,445,000 | 1,325,469,000 | |
Deferred loan origination costs/(fees) and premiums/(discounts), net | 534,000 | 177,000 | -97,000 | |
Allowance for loan losses | -13,646,000 | -12,200,000 | -8,685,000 | -8,200,000 |
Loans held for investment, net | 2,117,741,000 | 1,616,422,000 | 1,316,687,000 | |
Secured loans limit to one borrower | 83,900,000 | |||
Unsecured loans limit to one borrower | 50,400,000 | |||
Aggregate outstanding balance of loans to one borrower of secured credit | 44,900,000 | |||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 5,978,000 | |||
Purchased credit impaired loans, nonaccrual status | 1,700,000 | |||
Maximum | ||||
Loans Held for Investment | ||||
Secured loans limit to one borrower (as a percent) | 25.00% | |||
Unsecured loans limit to one borrower (as a percent) | 15.00% | |||
Business loans: Commercial and industrial | ||||
Loans Held for Investment | ||||
Total gross loans | 420,218,000 | 428,207,000 | 271,877,000 | |
Allowance for loan losses | -4,932,000 | -4,200,000 | -2,365,000 | -1,968,000 |
Purchased Credit Impaired | ||||
Total purchase credit impaired | 696,000 | |||
Business loans: Commercial owner occupied | ||||
Loans Held for Investment | ||||
Total gross loans | 352,351,000 | 210,995,000 | 223,848,000 | |
Allowance for loan losses | -1,853,000 | -1,757,000 | -1,754,000 | -1,818,000 |
Purchased Credit Impaired | ||||
Total purchase credit impaired | 2,937,000 | |||
Business loans: SBA | ||||
Loans Held for Investment | ||||
Total gross loans | 49,855,000 | 28,404,000 | 11,045,000 | |
Allowance for loan losses | -547,000 | -568,000 | -179,000 | -151,000 |
Business loans: Warehouse facilities | ||||
Loans Held for Investment | ||||
Total gross loans | 216,554,000 | 113,798,000 | 81,033,000 | |
Allowance for loan losses | -889,000 | -546,000 | -376,000 | -392,000 |
Real estate loans: Commercial non-owner occupied | ||||
Loans Held for Investment | ||||
Total gross loans | 452,422,000 | 359,213,000 | 333,490,000 | |
Allowance for loan losses | -2,131,000 | -2,007,000 | -1,857,000 | -1,658,000 |
Purchased Credit Impaired | ||||
Total purchase credit impaired | 2,344,000 | |||
Real estate loans: Multi-family | ||||
Loans Held for Investment | ||||
Total gross loans | 397,130,000 | 262,965,000 | 223,200,000 | |
Allowance for loan losses | -1,303,000 | -1,060,000 | -805,000 | -817,000 |
Real estate loans: One-to-four family | ||||
Loans Held for Investment | ||||
Total gross loans | 116,735,000 | 122,795,000 | 141,469,000 | |
Allowance for loan losses | -674,000 | -842,000 | -919,000 | -1,099,000 |
Purchased Credit Impaired | ||||
Total purchase credit impaired | 1,000 | |||
Real estate loans: Construction | ||||
Loans Held for Investment | ||||
Total gross loans | 111,704,000 | 89,682,000 | 29,857,000 | |
Allowance for loan losses | -1,210,000 | -1,088,000 | -323,000 | -136,000 |
Real estate loans: Land | ||||
Loans Held for Investment | ||||
Total gross loans | 7,243,000 | 9,088,000 | 6,170,000 | |
Allowance for loan losses | -78,000 | -108,000 | -81,000 | -127,000 |
Other loans | ||||
Loans Held for Investment | ||||
Total gross loans | 6,641,000 | 3,298,000 | 3,480,000 | |
Allowance for loan losses | -29,000 | -24,000 | -26,000 | -34,000 |
Canyon National | ||||
Loans Held for Investment | ||||
Unaccreted mark-to-market discount | 1,200,000 | |||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 1,609,000 | |||
Canyon National | Business loans: Commercial and industrial | ||||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 95,000 | |||
Canyon National | Business loans: Commercial owner occupied | ||||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 549,000 | |||
Canyon National | Real estate loans: Commercial non-owner occupied | ||||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 965,000 | |||
Palm Desert National | ||||
Loans Held for Investment | ||||
Unaccreted mark-to-market discount | 1,300,000 | |||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 1,000 | |||
Palm Desert National | Real estate loans: One-to-four family | ||||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 1,000 | |||
San Diego Trust Bank | ||||
Loans Held for Investment | ||||
Unaccreted mark-to-market discount | 151,000 | |||
Independence Bank | ||||
Loans Held for Investment | ||||
Unaccreted mark-to-market discount | 6,900,000 | |||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 4,368,000 | |||
Independence Bank | Business loans: Commercial and industrial | ||||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 601,000 | |||
Independence Bank | Business loans: Commercial owner occupied | ||||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 2,388,000 | |||
Independence Bank | Real estate loans: Commercial non-owner occupied | ||||
Purchased Credit Impaired | ||||
Total purchase credit impaired | 1,379,000 | |||
First Association Bank | ||||
Loans Held for Investment | ||||
Mark-to-market premium | 28,000 |
Loans_Held_for_Investment_Deta1
Loans Held for Investment (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Accretable yield on purchased credit impaired | ||
Balance at the beginning of period | $1,403 | |
Accretable yield at acquisition | 602 | |
Accretion | -77 | |
Disposals and other | -4 | |
Balance at the end of period | 1,924 | |
Canyon National | ||
Accretable yield on purchased credit impaired | ||
Balance at the beginning of period | 1,351 | |
Accretion | -47 | |
Balance at the end of period | 1,304 | |
Palm Desert National | ||
Accretable yield on purchased credit impaired | ||
Balance at the beginning of period | 52 | |
Balance at the end of period | 52 | 52 |
Independence Bank | ||
Accretable yield on purchased credit impaired | ||
Accretable yield at acquisition | 602 | |
Accretion | -30 | |
Disposals and other | -4 | |
Balance at the end of period | $568 |
Loans_Held_for_Investment_Deta2
Loans Held for Investment (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
item | item | ||
Impaired Loans | |||
Contractual Unpaid Principal Balance | $3,615 | $3,716 | $1,913 |
Recorded Investment | 2,922 | 2,683 | 1,472 |
With Specific Allowance | 274 | ||
Without Specific Allowance | 2,922 | 2,409 | 1,472 |
Specific Allowance for Impaired Loans | 104 | ||
Average Recorded Investment | 1,699 | 2,457 | 1,878 |
Interest Income Recognized | 24 | 43 | 148 |
Nonaccruing loans | 2,742 | 2,497 | 1,290 |
Accruing loans | 180 | 186 | 182 |
Total impaired loans | 2,922 | 2,683 | 1,472 |
Loans 90 days or more past due and still accruing | 0 | 0 | 0 |
Number of TDRs | 0 | 0 | |
Business loans: Commercial and industrial | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 2,225 | 67 | |
Recorded Investment | 1,853 | 31 | |
Without Specific Allowance | 1,853 | 31 | |
Average Recorded Investment | 618 | 10 | 11 |
Total impaired loans | 1,853 | 31 | |
Business loans: Commercial owner occupied | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 438 | 870 | 440 |
Recorded Investment | 379 | 718 | 388 |
Without Specific Allowance | 379 | 718 | 388 |
Average Recorded Investment | 382 | 738 | 514 |
Interest Income Recognized | 7 | 46 | |
Total impaired loans | 379 | 718 | 388 |
Business loans: SBA | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 246 | ||
Recorded Investment | 14 | ||
Without Specific Allowance | 14 | ||
Average Recorded Investment | 14 | 5 | |
Interest Income Recognized | 9 | ||
Total impaired loans | 14 | ||
Real estate loans: Commercial non-owner occupied | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 698 | 1,894 | 1,217 |
Recorded Investment | 458 | 1,327 | 848 |
Without Specific Allowance | 458 | 1,327 | 848 |
Average Recorded Investment | 465 | 1,093 | 908 |
Interest Income Recognized | 12 | 17 | 85 |
Total impaired loans | 458 | 1,327 | 848 |
Real estate loans: One-to-four family | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 254 | 639 | 256 |
Recorded Investment | 232 | 593 | 236 |
With Specific Allowance | 274 | ||
Without Specific Allowance | 232 | 319 | 236 |
Specific Allowance for Impaired Loans | 104 | ||
Average Recorded Investment | 234 | 602 | 440 |
Interest Income Recognized | 5 | 17 | 17 |
Total impaired loans | $232 | $593 | $236 |
Loans_Held_for_Investment_Deta3
Loans Held for Investment (Details 4) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
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 | $2,130,853 | $1,628,445 | $1,325,469 |
Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 420,218 | 428,207 | 271,877 |
Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 352,351 | 210,995 | 223,848 |
Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 49,855 | 28,404 | 11,045 |
Business loans: Warehouse facilities | |||
Credit Risk Grades | |||
Total Gross Loans | 216,554 | 113,798 | 81,033 |
Real estate loans: Commercial non-owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 452,422 | 359,213 | 333,490 |
Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 397,130 | 262,965 | 223,200 |
Real estate loans: One-to-four family | |||
Credit Risk Grades | |||
Total Gross Loans | 116,735 | 122,795 | 141,469 |
Real estate loans: Construction | |||
Credit Risk Grades | |||
Total Gross Loans | 111,704 | 89,682 | 29,857 |
Real estate loans: Land | |||
Credit Risk Grades | |||
Total Gross Loans | 7,243 | 9,088 | 6,170 |
Other loans | |||
Credit Risk Grades | |||
Total Gross Loans | 6,641 | 3,298 | 3,480 |
Pass | |||
Credit Risk Grades | |||
Total Gross Loans | 2,097,145 | 1,612,143 | 1,305,532 |
Pass | Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 410,328 | 426,379 | 270,024 |
Pass | Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 340,685 | 202,390 | 212,663 |
Pass | Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 49,855 | 28,132 | 11,031 |
Pass | Business loans: Warehouse facilities | |||
Credit Risk Grades | |||
Total Gross Loans | 216,554 | 113,798 | 81,033 |
Pass | Real estate loans: Commercial non-owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 446,900 | 355,274 | 328,645 |
Pass | Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 391,690 | 261,956 | 222,178 |
Pass | Real estate loans: One-to-four family | |||
Credit Risk Grades | |||
Total Gross Loans | 115,780 | 122,146 | 140,453 |
Pass | Real estate loans: Construction | |||
Credit Risk Grades | |||
Total Gross Loans | 111,469 | 89,682 | 29,857 |
Pass | Real estate loans: Land | |||
Credit Risk Grades | |||
Total Gross Loans | 7,243 | 9,088 | 6,170 |
Pass | Other loans | |||
Credit Risk Grades | |||
Total Gross Loans | 6,641 | 3,298 | 3,478 |
Special Mention | |||
Credit Risk Grades | |||
Total Gross Loans | 3,204 | 773 | 780 |
Special Mention | Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 1,250 | ||
Special Mention | Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 272 | ||
Special Mention | Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 272 | ||
Special Mention | Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 1,954 | 501 | 508 |
Substandard | |||
Credit Risk Grades | |||
Total Gross Loans | 30,504 | 15,529 | 19,157 |
Substandard | Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 8,640 | 1,828 | 1,853 |
Substandard | Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 11,666 | 8,605 | 10,913 |
Substandard | Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 14 | ||
Substandard | Real estate loans: Commercial non-owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 5,522 | 3,939 | 4,845 |
Substandard | Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 3,486 | 508 | 514 |
Substandard | Real estate loans: One-to-four family | |||
Credit Risk Grades | |||
Total Gross Loans | 955 | 649 | 1,016 |
Substandard | Real estate loans: Construction | |||
Credit Risk Grades | |||
Total Gross Loans | 235 | ||
Substandard | Other loans | |||
Credit Risk Grades | |||
Total Gross Loans | $2 |
Loans_Held_for_Investment_Deta4
Loans Held for Investment (Details 5) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Other information concerning the credit quality | |||
Current | $2,127,575 | $1,628,347 | $1,323,892 |
30-59 Days Past Due | 645 | 20 | 118 |
60-89 Days Past Due | 375 | 24 | 32 |
90+ Days Past Due | 2,258 | 54 | 1,427 |
Total | 2,130,853 | 1,628,445 | 1,325,469 |
Non-Accruing | 4,663 | 1,444 | 2,674 |
Business loans: Commercial and industrial | |||
Other information concerning the credit quality | |||
Current | 417,894 | 428,183 | 271,845 |
30-59 Days Past Due | 146 | ||
60-89 Days Past Due | 24 | 32 | |
90+ Days Past Due | 2,178 | ||
Total | 420,218 | 428,207 | 271,877 |
Non-Accruing | 2,455 | 31 | |
Business loans: Commercial owner occupied | |||
Other information concerning the credit quality | |||
Current | 351,600 | 210,995 | 223,402 |
30-59 Days Past Due | 349 | ||
60-89 Days Past Due | 375 | ||
90+ Days Past Due | 27 | 446 | |
Total | 352,351 | 210,995 | 223,848 |
Non-Accruing | 527 | 514 | 864 |
Business loans: SBA | |||
Other information concerning the credit quality | |||
Current | 49,855 | 28,404 | 10,985 |
30-59 Days Past Due | 46 | ||
90+ Days Past Due | 14 | ||
Total | 49,855 | 28,404 | 11,045 |
Non-Accruing | 14 | ||
Business loans: Warehouse facilities | |||
Other information concerning the credit quality | |||
Current | 216,554 | 113,798 | 81,033 |
Total | 216,554 | 113,798 | 81,033 |
Real estate loans: Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Current | 452,422 | 359,213 | 332,572 |
90+ Days Past Due | 918 | ||
Total | 452,422 | 359,213 | 333,490 |
Non-Accruing | 1,602 | 848 | 1,327 |
Real estate loans: Multi-family | |||
Other information concerning the credit quality | |||
Current | 397,130 | 262,965 | 223,200 |
Total | 397,130 | 262,965 | 223,200 |
Real estate loans: One-to-four family | |||
Other information concerning the credit quality | |||
Current | 116,533 | 122,722 | 141,348 |
30-59 Days Past Due | 149 | 19 | 72 |
90+ Days Past Due | 53 | 54 | 49 |
Total | 116,735 | 122,795 | 141,469 |
Non-Accruing | 79 | 82 | 438 |
Real estate loans: Construction | |||
Other information concerning the credit quality | |||
Current | 111,704 | 89,682 | 29,857 |
Total | 111,704 | 89,682 | 29,857 |
Real estate loans: Land | |||
Other information concerning the credit quality | |||
Current | 7,243 | 9,088 | 6,170 |
Total | 7,243 | 9,088 | 6,170 |
Other loans | |||
Other information concerning the credit quality | |||
Current | 6,640 | 3,297 | 3,480 |
30-59 Days Past Due | 1 | 1 | |
Total | $6,641 | $3,298 | $3,480 |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $12,200 | $8,200 | |
Charge-offs | -396 | -501 | |
Recoveries | 12 | 37 | |
Provisions for (reduction in) loan losses | 1,830 | 949 | |
Balance, at the end of the period | 13,646 | 8,685 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 104 | ||
Amount of allowance attributed to: General portfolio allocation | 13,646 | 8,581 | |
Loans individually evaluated for impairment | 2,922 | 2,683 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 3.88% | |
Loans collectively evaluated for impairment | 2,127,931 | 1,322,786 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.64% | 0.65% | |
Total gross loans | 2,130,853 | 1,325,469 | 1,628,445 |
Total allowance to gross loans (as a percent) | 0.64% | 0.66% | |
Business loans: Commercial and industrial | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 4,200 | 1,968 | |
Charge-offs | -396 | -124 | |
Recoveries | 12 | 5 | |
Provisions for (reduction in) loan losses | 1,116 | 516 | |
Balance, at the end of the period | 4,932 | 2,365 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 4,932 | 2,365 | |
Loans individually evaluated for impairment | 1,853 | 31 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 418,365 | 271,846 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.18% | 0.87% | |
Total gross loans | 420,218 | 271,877 | 428,207 |
Total allowance to gross loans (as a percent) | 1.17% | 0.87% | |
Business loans: Commercial owner occupied | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 1,757 | 1,818 | |
Provisions for (reduction in) loan losses | 96 | -64 | |
Balance, at the end of the period | 1,853 | 1,754 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 1,853 | 1,754 | |
Loans individually evaluated for impairment | 379 | 718 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 351,972 | 223,130 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.53% | 0.79% | |
Total gross loans | 352,351 | 223,848 | 210,995 |
Total allowance to gross loans (as a percent) | 0.53% | 0.78% | |
Business loans: SBA | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 568 | 151 | |
Recoveries | 2 | ||
Provisions for (reduction in) loan losses | -21 | 26 | |
Balance, at the end of the period | 547 | 179 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 547 | 179 | |
Loans individually evaluated for impairment | 14 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 49,855 | 11,031 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.10% | 1.62% | |
Total gross loans | 49,855 | 11,045 | 28,404 |
Total allowance to gross loans (as a percent) | 1.10% | 1.62% | |
Business loans: Warehouse facilities | |||
Allowance for Loan Losses | |||
Period considered for comparison of allowance for loan losses factor | 10 years | ||
Period considered for comparison of entity's allowance for loan losses factor | 15 years | ||
Trailing period considered for comparison of allowance for loan losses factor | 12 months | ||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 546 | 392 | |
Provisions for (reduction in) loan losses | 343 | -16 | |
Balance, at the end of the period | 889 | 376 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 889 | 376 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 216,554 | 81,033 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.41% | 0.46% | |
Total gross loans | 216,554 | 81,033 | 113,798 |
Total allowance to gross loans (as a percent) | 0.41% | 0.46% | |
Real estate loans: Commercial non-owner occupied | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 2,007 | 1,658 | |
Charge-offs | -365 | ||
Provisions for (reduction in) loan losses | 124 | 564 | |
Balance, at the end of the period | 2,131 | 1,857 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 2,131 | 1,857 | |
Loans individually evaluated for impairment | 458 | 1,327 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 451,964 | 332,163 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.47% | 0.56% | |
Total gross loans | 452,422 | 333,490 | 359,213 |
Total allowance to gross loans (as a percent) | 0.47% | 0.56% | |
Real estate loans: Multi-family | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 1,060 | 817 | |
Provisions for (reduction in) loan losses | 243 | -12 | |
Balance, at the end of the period | 1,303 | 805 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 1,303 | 805 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 397,130 | 223,200 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.33% | 0.36% | |
Total gross loans | 397,130 | 223,200 | 262,965 |
Total allowance to gross loans (as a percent) | 0.33% | 0.36% | |
Real estate loans: One-to-four family | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 842 | 1,099 | |
Charge-offs | -12 | ||
Recoveries | 30 | ||
Provisions for (reduction in) loan losses | -168 | -198 | |
Balance, at the end of the period | 674 | 919 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 104 | ||
Amount of allowance attributed to: General portfolio allocation | 674 | 815 | |
Loans individually evaluated for impairment | 232 | 593 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 17.54% | |
Loans collectively evaluated for impairment | 116,503 | 140,876 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.58% | 0.58% | |
Total gross loans | 116,735 | 141,469 | 122,795 |
Total allowance to gross loans (as a percent) | 0.58% | 0.65% | |
Real estate loans: Construction | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 1,088 | 136 | |
Provisions for (reduction in) loan losses | 122 | 187 | |
Balance, at the end of the period | 1,210 | 323 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 1,210 | 323 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 111,704 | 29,857 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.08% | 1.08% | |
Total gross loans | 111,704 | 29,857 | 89,682 |
Total allowance to gross loans (as a percent) | 1.08% | 1.08% | |
Real estate loans: Land | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 108 | 127 | |
Provisions for (reduction in) loan losses | -30 | -46 | |
Balance, at the end of the period | 78 | 81 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 78 | 81 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 7,243 | 6,170 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.08% | 1.31% | |
Total gross loans | 7,243 | 6,170 | 9,088 |
Total allowance to gross loans (as a percent) | 1.08% | 1.31% | |
Other loans | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | 24 | 34 | |
Provisions for (reduction in) loan losses | 5 | -8 | |
Balance, at the end of the period | 29 | 26 | |
Other disclosures | |||
Amount of allowance attributed to: General portfolio allocation | 29 | 26 | |
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | 6,641 | 3,480 | |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.44% | 0.75% | |
Total gross loans | $6,641 | $3,480 | $3,298 |
Total allowance to gross loans (as a percent) | 0.44% | 0.75% | |
Owner Occupied Commercial Real Estate Loans, Commercial and Industrial Loans and SBA Loans | |||
Allowance for Loan Losses | |||
Trailing period one considered for determination of allowance for loan losses factor | 24 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 | ||
Annualized trailing period one considered for determination of allowance for loan losses factor | 72 months | ||
Annualized trailing period two considered for determination of allowance for loan losses factor | 36 months | ||
Annualized trailing period three considered for determination of allowance for loan losses factor | 24 months | ||
Annualized trailing period four considered for determination of allowance for loan losses factor | 12 months | ||
Annualized trailing period five considered for determination of allowance for loan losses factor | 6 months | ||
Multi-Family and Non-Owner Occupied Commercial Real Estate Loans | |||
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 | ||
Annualized trailing period one considered for determination of allowance for loan losses factor | 72 months | ||
Annualized trailing period two considered for determination of allowance for loan losses factor | 36 months | ||
Annualized trailing period three considered for determination of allowance for loan losses factor | 24 months | ||
Annualized trailing period four considered for determination of allowance for loan losses factor | 12 months | ||
Annualized trailing period five considered for determination of allowance for loan losses factor | 6 months | ||
One-to-Four Family and Consumer Loans | |||
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 | ||
Annualized trailing period one considered for determination of allowance for loan losses factor | 72 months | ||
Annualized trailing period two considered for determination of allowance for loan losses factor | 36 months | ||
Annualized trailing period three considered for determination of allowance for loan losses factor | 24 months | ||
Annualized trailing period four considered for determination of allowance for loan losses factor | 12 months | ||
Annualized trailing period five considered for determination of allowance for loan losses factor | 6 months |
Subordinated_Debentures_Detail
Subordinated Debentures (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2004 | Aug. 31, 2014 | Mar. 31, 2015 |
PPBI Trust I | |||
Subordinated Debentures | |||
Floating Rate Trust Preferred Securities issue amount | $10 | ||
Notes | |||
Subordinated Debentures | |||
Debt issued | 60 | ||
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% | ||
Subordinated Debentures | |||
Subordinated Debentures | |||
Floating interest rate, base rate | 3-month LIBOR | ||
Floating interest rate, basis points added to base rate (as a percent) | 2.75% | ||
Effective rate (as a percent) | 3.00% | ||
Subordinated Debentures | PPBI Trust I | |||
Subordinated Debentures | |||
Debt issued | $10.30 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share | ||
Stock options excluded | 967,050 | 700,598 |
Net Income | ||
Net income | $1,789 | $2,632 |
Basic income available to common stockholders | 1,789 | 2,632 |
Diluted income available to common stockholders plus assumed conversions | $1,789 | $2,632 |
Shares | ||
Basic income available to common stockholders (in shares) | 20,091,924 | 17,041,594 |
Effect of dilutive stock options and warrants (in shares) | 290,908 | 334,407 |
Diluted income available to common stockholders plus assumed conversions (in shares) | 20,382,832 | 17,376,001 |
Per Share Amount | ||
Basic income available to common stockholders (in dollars per share) | $0.09 | $0.15 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $0.09 | $0.15 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
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 | $280,461 | $202,142 | $201,638 |
Accrued interest receivable | 8,769 | 5,865 | 7,131 |
Other real estate owned | 997 | 752 | 1,037 |
Off-balance sheet commitments and standby letters of credit | |||
Notional Amount | 403,084 | 246,014 | 355,024 |
Cost to Cede or Assume | 40,308 | 24,601 | 35,502 |
Fair Value Measurement Using: Level 1 | |||
Assets: | |||
Cash and cash equivalents | 178,371 | 124,419 | 110,925 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 30,586 | 14,104 | 17,067 |
Accrued interest receivable | 8,769 | 5,865 | 7,131 |
Liabilities: | |||
Deposit accounts | 1,576,056 | 1,110,877 | 1,216,847 |
FHLB advances | 300,031 | 50,000 | 70,025 |
Accrued interest payable | 177 | 168 | 209 |
Fair Value Measurement Using: Level 2 | |||
Assets: | |||
Securities available for sale | 280,461 | 202,142 | 201,638 |
Liabilities: | |||
Deposit accounts | 479,204 | 354,437 | 519,898 |
Other borrowings | 45,084 | 47,708 | 48,312 |
Subordinated debentures | 69,501 | 4,649 | 33,456 |
Off-balance sheet commitments and standby letters of credit | |||
Cost to Cede or Assume | 40,308 | 24,601 | 35,502 |
Fair Value Measurement Using: Level 3 | |||
Assets: | |||
Loans held for investment, net | 2,205,161 | 1,392,661 | 1,686,046 |
Other real estate owned | 997 | 752 | 1,037 |
Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | 178,371 | 124,419 | 110,925 |
Securities available for sale | 280,461 | 202,142 | 201,638 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 30,586 | 14,104 | 17,067 |
Loans held for investment, net | 2,117,741 | 1,316,687 | 1,616,422 |
Accrued interest receivable | 8,769 | 5,865 | 7,131 |
Other real estate owned | 997 | 752 | 1,037 |
Liabilities: | |||
Deposit accounts | 2,043,166 | 1,435,203 | 1,630,826 |
FHLB advances | 300,000 | 50,000 | 70,000 |
Other borrowings | 43,434 | 45,506 | 46,643 |
Subordinated debentures | 70,310 | 10,310 | 70,310 |
Accrued interest payable | 177 | 168 | 209 |
Estimated Fair Value | |||
Assets: | |||
Cash and cash equivalents | 178,371 | 124,419 | 110,925 |
Securities available for sale | 280,461 | 202,142 | 201,638 |
Federal Reserve Bank, TIB and FHLB stock, at cost | 30,586 | 14,104 | 17,067 |
Loans held for investment, net | 2,205,161 | 1,392,661 | 1,686,046 |
Accrued interest receivable | 8,769 | 5,865 | 7,131 |
Other real estate owned | 997 | 752 | 1,037 |
Liabilities: | |||
Deposit accounts | 2,055,260 | 1,465,314 | 1,736,745 |
FHLB advances | 300,031 | 50,000 | 70,025 |
Other borrowings | 45,084 | 47,708 | 48,312 |
Subordinated debentures | 69,501 | 4,649 | 33,456 |
Accrued interest payable | $177 | $168 | $209 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Investment securities available for sale: | |||
Total securities available for sale | $280,461 | $201,638 | $202,142 |
Fair Value Measurement Using: Level 2 | |||
Investment securities available for sale: | |||
Total securities available for sale | 280,461 | 201,638 | 202,142 |
Recurring basis | Fair Value Measurement Using: Level 2 | |||
Investment securities available for sale: | |||
Total securities available for sale | 280,461 | 202,142 | |
Recurring basis | Fair Value Measurement Using: Level 2 | Municipal bonds | |||
Investment securities available for sale: | |||
Total securities available for sale | 105,523 | 77,324 | |
Recurring basis | Fair Value Measurement Using: Level 2 | Mortgage-backed securities | |||
Investment securities available for sale: | |||
Total securities available for sale | 174,938 | 124,818 | |
Recurring basis | Estimated Fair Value | |||
Investment securities available for sale: | |||
Total securities available for sale | 280,461 | 202,142 | |
Recurring basis | Estimated Fair Value | Municipal bonds | |||
Investment securities available for sale: | |||
Total securities available for sale | 105,523 | 77,324 | |
Recurring basis | Estimated Fair Value | Mortgage-backed securities | |||
Investment securities available for sale: | |||
Total securities available for sale | $174,938 | $124,818 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Fair Value Disclosures | |||
Other real estate owned | $997 | $1,037 | $752 |
Fair Value Measurement Using: Level 3 | |||
Fair Value Disclosures | |||
Other real estate owned | 997 | 1,037 | 752 |
Non-recurring basis | Fair Value Measurement Using: Level 3 | |||
Fair Value Disclosures | |||
Collateral dependent impaired loans | 2,742 | 1,730 | |
Other real estate owned | 997 | 752 | |
Total assets | 3,739 | 2,482 | |
Non-recurring basis | Estimated Fair Value | |||
Fair Value Disclosures | |||
Collateral dependent impaired loans | 2,742 | 1,730 | |
Other real estate owned | 997 | 752 | |
Total assets | $3,739 | $2,482 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details 4) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Other real estate owned | 997 | 752 | $1,037 |
Fair Value Measurement Using: Level 3 | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Other real estate owned | 997 | 752 | 1,037 |
Non-recurring basis | Fair Value Measurement Using: Level 3 | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | 2,742 | 1,730 | |
Other real estate owned | 997 | 752 | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: Commercial and industrial | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | 1,853 | 31 | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: Commercial and industrial | Collateral analysis | |||
Unobservable Inputs | |||
Rate (as a percent) | 6.70% | ||
Management adjustment to reflect current conditions and selling costs | 8 years | ||
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: Commercial and industrial | Collateral analysis | Minimum | |||
Unobservable Inputs | |||
Rate (as a percent) | 6.00% | ||
Management adjustment to reflect current conditions and selling costs | 3 years | ||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: Commercial and industrial | Collateral analysis | Maximum | |||
Unobservable Inputs | |||
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | 10.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: Commercial owner occupied | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | 379 | 718 | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: Commercial owner occupied | Collateral analysis | |||
Unobservable Inputs | |||
Rate (as a percent) | 7.00% | ||
Management adjustment to reflect current conditions and selling costs | 3 years | ||
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: Commercial owner occupied | Collateral analysis | Minimum | |||
Unobservable Inputs | |||
Rate (as a percent) | 6.75% | ||
Management adjustment to reflect current conditions and selling costs | 7 years | ||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: Commercial owner occupied | Collateral analysis | Maximum | |||
Unobservable Inputs | |||
Rate (as a percent) | 11.75% | ||
Management adjustment to reflect current conditions and selling costs | 8 years | ||
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | 10.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: SBA | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | 14 | ||
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: SBA | Collateral analysis | Minimum | |||
Unobservable Inputs | |||
Rate (as a percent) | 6.00% | ||
Management adjustment to reflect current conditions and selling costs | 7 years | ||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | ||
Non-recurring basis | Fair Value Measurement Using: Level 3 | Business loans: SBA | Collateral analysis | Maximum | |||
Unobservable Inputs | |||
Management adjustment to reflect current conditions and selling costs (as a percent) | 20.00% | ||
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: Commercial non-owner occupied | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | 458 | 918 | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: Commercial non-owner occupied | Collateral analysis | Minimum | |||
Unobservable Inputs | |||
Rate (as a percent) | 7.00% | 6.13% | |
Management adjustment to reflect current conditions and selling costs | 12 years | 12 years | |
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: Commercial non-owner occupied | Collateral analysis | Maximum | |||
Unobservable Inputs | |||
Rate (as a percent) | 7.00% | ||
Management adjustment to reflect current conditions and selling costs | 13 years | ||
Management adjustment to reflect current conditions and selling costs (as a percent) | 15.00% | 15.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: Land | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Other real estate owned | 711 | 752 | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: Land | Collateral analysis | Minimum | |||
Unobservable Inputs | |||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: Land | Collateral analysis | Maximum | |||
Unobservable Inputs | |||
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | 10.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: One-to-four family | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | 52 | 49 | |
Other real estate owned | 286 | ||
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: One-to-four family | Collateral analysis | Minimum | |||
Unobservable Inputs | |||
Rate (as a percent) | 8.00% | 11.10% | |
Management adjustment to reflect current conditions and selling costs | 5 years | 6 years | |
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Fair Value Measurement Using: Level 3 | Real estate loans: One-to-four family | Collateral analysis | Maximum | |||
Unobservable Inputs | |||
Rate (as a percent) | 15.00% | 15.00% | |
Management adjustment to reflect current conditions and selling costs | 16 years | 15 years | |
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | 10.00% |