Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 10, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | PACIFIC PREMIER BANCORP INC | |
Entity Central Index Key | 1,028,918 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,510,558 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
ASSETS | |||
Cash and due from banks | $ 82,552 | $ 110,650 | $ 120,016 |
Federal funds sold | 525 | 275 | 276 |
Cash and cash equivalents | 83,077 | 110,925 | 120,292 |
Investment securities available for sale | 280,434 | 201,638 | 235,116 |
FHLB and other stock, at cost | 22,843 | 17,067 | 18,494 |
Loans held for investment | 2,118,560 | 1,628,622 | 1,466,768 |
Allowance for loan losses | (15,100) | (12,200) | (9,733) |
Loans held for investment, net | 2,103,460 | 1,616,422 | 1,457,035 |
Accrued interest receivable | 9,072 | 7,131 | 6,645 |
Other real estate owned | 711 | 1,037 | 752 |
Premises and equipment | 9,394 | 9,165 | 9,344 |
Deferred income taxes | 12,305 | 9,383 | 10,796 |
Bank owned life insurance | 38,665 | 26,822 | 26,445 |
Intangible assets | 7,858 | 5,614 | 6,121 |
Goodwill | 50,832 | 22,950 | 22,950 |
Other assets | 18,105 | 10,743 | 7,535 |
TOTAL ASSETS | 2,636,756 | 2,038,897 | 1,921,525 |
Deposit accounts: | |||
Noninterest bearing checking | 635,695 | 456,754 | 410,843 |
Interest-bearing: | |||
Checking | 135,228 | 131,635 | 128,911 |
Money market/savings | 795,725 | 600,764 | 533,672 |
Retail certificates of deposit | 402,262 | 365,168 | 367,299 |
Wholesale/brokered certificates of deposit | 127,073 | 76,505 | 4,856 |
Total interest-bearing | 1,460,288 | 1,174,072 | 1,034,738 |
Total deposits | 2,095,983 | 1,630,826 | 1,445,581 |
FHLB advances and other borrowings | 167,389 | 116,643 | 255,287 |
Subordinated debentures | 70,310 | 70,310 | 10,310 |
Accrued expenses and other liabilities | 21,481 | 21,526 | 18,166 |
TOTAL LIABILITIES | 2,355,163 | 1,839,305 | 1,729,344 |
STOCKHOLDERS’ EQUITY: | |||
Common stock, $.01 par value; 50,000,000 shares authorized; 21,510,558 shares at June 30, 2015, 16,903,884 shares at December 31, 2014, and 17,068,641 shares at June 30, 2014 issued and outstanding | 215 | 169 | 171 |
Additional paid-in capital | 220,759 | 147,474 | 149,942 |
Retained earnings | 61,044 | 51,431 | 42,090 |
Accumulated other comprehensive income (loss), net of tax (benefit) of $(297) at June 30, 2015, $362 at December 31, 2014 and ($16) at June 30, 2014 | (425) | 518 | (22) |
TOTAL STOCKHOLDERS’ EQUITY | 281,593 | 199,592 | 192,181 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,636,756 | $ 2,038,897 | $ 1,921,525 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,510,558 | 17,068,641 | 16,903,884 |
Common stock, shares outstanding | 21,510,558 | 17,068,641 | 16,903,884 |
Income tax expense (benefit) | $ (297) | $ (16) | $ 362 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
INTEREST INCOME | |||||
Loans | $ 27,581 | $ 24,513 | $ 17,922 | $ 52,094 | $ 34,507 |
Investment securities and other interest-earning assets | 2,158 | 1,557 | 1,309 | 3,715 | 2,746 |
Total interest income | 29,739 | 26,070 | 19,231 | 55,809 | 37,253 |
INTEREST EXPENSE | |||||
Deposits | 1,589 | 1,606 | 1,203 | 3,195 | 2,272 |
FHLB advances and other borrowings | 407 | 375 | 255 | 782 | 498 |
Subordinated debentures | 982 | 971 | 75 | 1,953 | 150 |
Total interest expense | 2,978 | 2,952 | 1,533 | 5,930 | 2,920 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 26,761 | 23,118 | 17,698 | 49,879 | 34,333 |
PROVISION FOR LOAN LOSSES | 1,833 | 1,830 | 1,030 | 3,663 | 1,979 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 24,928 | 21,288 | 16,668 | 46,216 | 32,354 |
NONINTEREST INCOME | |||||
Loan servicing fees | 724 | 901 | 282 | 1,625 | 1,138 |
Deposit fees | 634 | 582 | 463 | 1,216 | 917 |
Net gain from sales of loans | 2,721 | 0 | 1,298 | 2,721 | 1,846 |
Net gain from sales of investment securities | 139 | 116 | 98 | 255 | 160 |
Other income | 494 | 427 | 330 | 921 | 462 |
Total noninterest income | 4,712 | 2,026 | 2,471 | 6,738 | 4,523 |
NONINTEREST EXPENSE | |||||
Compensation and benefits | 9,486 | 9,522 | 6,485 | 19,008 | 13,376 |
Premises and occupancy | 2,082 | 1,829 | 1,566 | 3,911 | 3,154 |
Data processing and communications | 716 | 702 | 485 | 1,418 | 1,616 |
Other real estate owned operations, net | 56 | 48 | 41 | 104 | 54 |
FDIC insurance premiums | 363 | 314 | 266 | 677 | 503 |
Legal, audit and professional expense | 661 | 521 | 385 | 1,182 | 978 |
Marketing expense | 615 | 603 | 242 | 1,218 | 418 |
Office and postage expense | 505 | 499 | 345 | 1,004 | 714 |
Loan expense | 263 | 193 | 191 | 456 | 375 |
Deposit expense | 982 | 805 | 747 | 1,787 | 1,508 |
Merger related expense | 0 | 3,992 | 0 | 3,992 | 626 |
Other Depreciation and Amortization | 344 | 314 | 254 | 658 | 507 |
Other expense | 1,141 | 1,127 | 634 | 2,268 | 1,353 |
Total noninterest expense | 17,214 | 20,469 | 11,641 | 37,683 | 25,182 |
NET INCOME BEFORE INCOME TAX | 12,426 | 2,845 | 7,498 | 15,271 | 11,695 |
INCOME TAX | 4,601 | 1,056 | 2,855 | 5,658 | 4,420 |
NET INCOME | $ 7,825 | $ 1,789 | $ 4,643 | $ 9,613 | $ 7,275 |
EARNINGS PER SHARE | |||||
Basic (in dollars per share) | $ 0.36 | $ 0.09 | $ 0.28 | $ 0.46 | $ 0.43 |
Diluted (in dollars per share) | $ 0.36 | $ 0.09 | $ 0.27 | $ 0.46 | $ 0.42 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||
Basic (in shares) | 21,493,641 | 20,091,924 | 17,124,337 | 20,796,655 | 17,083,194 |
Diluted (in shares) | 21,828,876 | 20,382,832 | 17,476,390 | 21,126,542 | 17,422,928 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 7,825 | $ 1,789 | $ 4,643 | $ 9,613 | $ 7,275 | |
Other comprehensive income (loss), net of tax (benefit): | ||||||
Unrealized holding gains (losses) on securities arising during the period, net of income taxes (benefits) | [1] | (1,628) | 835 | 1,120 | (793) | 3,149 |
Reclassification adjustment for net gain on sale of securities included in net income, net of income taxes | [2] | (82) | (68) | (58) | (150) | (94) |
Net unrealized gain (loss) on securities, net of income taxes | (1,710) | 767 | 1,062 | (943) | 3,055 | |
Comprehensive income | $ 6,115 | $ 2,556 | $ 5,705 | $ 8,670 | $ 10,330 | |
[1] | Income tax (benefit) on the unrealized gains (losses) on securities was $(1.1) million for the three months ended June 30, 2015, $584,000 for the three months ended March 31, 2015, $741,000 for the three months ended June 30, 2014, $(556,000) for the six months ended June 30, 2015 and $2.1 million for the six months ended June 30, 2014. | |||||
[2] | Income taxes on the reclassification adjustment for net gain on sale of securities included in net income was $57,000 for the three months ended June 30, 2015, $48,000 for the three months ended March 31, 2015, $40,000 for the three months ended June 30, 2014, $105,000 for the six months ended June 30, 2015 and $66,000 for the six months ended June 30, 2014. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||
Tax effect on unrealized holding gains (losses) on securities arising during the period | $ (1,100) | $ 584 | $ 741 | $ (556) | $ 2,100 |
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | $ 57 | $ 48 | $ 40 | $ 105 | $ 66 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income |
Balance at Dec. 31, 2013 | $ 175,226 | $ 166 | $ 143,322 | $ 34,815 | $ (3,077) |
Balance (in shares) at Dec. 31, 2013 | 16,656,279 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 7,275 | 7,275 | |||
Other comprehensive income | 3,055 | 3,055 | |||
Share-based compensation expense | 257 | 257 | |||
Common stock repurchased and retired | (2,757) | $ (2) | (2,755) | ||
Common stock repurchased and retired (in shares) | (262,897) | ||||
Common stock issued | 9,012 | $ 6 | 9,006 | ||
Common stock issued (in shares) | 562,469 | ||||
Exercise of stock options | 113 | $ 1 | 112 | ||
Exercise of stock options (in shares) | 112,790 | ||||
Balance at Jun. 30, 2014 | $ 192,181 | $ 171 | 149,942 | 42,090 | (22) |
Balance (in shares) at Jun. 30, 2014 | 17,068,641 | 17,068,641 | |||
Balance at Dec. 31, 2014 | $ 199,592 | $ 169 | 147,474 | 51,431 | 518 |
Balance (in shares) at Dec. 31, 2014 | 16,903,884 | 16,903,884 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 9,613 | ||||
Other comprehensive income | (943) | ||||
Share-based compensation expense | 435 | 435 | |||
Common stock issued | 72,252 | $ 45 | 72,207 | ||
Common stock issued (in shares) | 4,480,645 | ||||
Warrants exercised | 689 | $ 1 | 688 | ||
Warrant exercise (in shares) | 125,196 | ||||
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 Jun. 30, 2015 | $ 281,593 | $ 215 | $ 220,759 | $ 61,044 | $ (425) |
Balance (in shares) at Jun. 30, 2015 | 21,510,558 | 21,510,558 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 9,613 | $ 7,275 |
Adjustments to net income: | ||
Depreciation and amortization expense | 1,244 | 1,088 |
Amortization of Loan Fees and Discounts | (60) | 0 |
Provision for loan losses | 3,663 | 1,979 |
Share-based compensation expense | 435 | 257 |
Loss on sale and disposal of premises and equipment | 0 | 23 |
Loss on sale of other real estate owned | 51 | 17 |
Write down of other real estate owned | 41 | 0 |
Amortization of premium/discounts on securities held for sale, net | 1,763 | 1,220 |
Accretion of loan mark-to-market discount from acquisitions | (907) | (1,167) |
Gain on sale of investment securities available for sale | (255) | (160) |
Other-than-temporary impairment recovery on investment securities, net | 0 | (23) |
Gain on sale of loans held for investment | (2,721) | (1,846) |
Recoveries on loans | 25 | 55 |
Principal payments from loans held for sale | 0 | 31 |
Loss on loans held for sale | 0 | 180 |
Deferred income tax benefit (provision) | 1,706 | (2,319) |
Change in accrued expenses and other liabilities, net | (1,840) | (595) |
Income from bank owned life insurance, net | (643) | (394) |
Change in accrued interest receivable and other assets, net | (5,159) | (2,754) |
Net cash provided by operating activities | 6,956 | 2,867 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale and principal payments on loans held for investment | 309,960 | 147,372 |
Decrease in undisbursed loan funds | 56,124 | 24,913 |
Purchase and origination of loans held for investment | (520,230) | (314,429) |
Proceeds from sale of other real estate owned | 234 | 777 |
Principal payments on securities available for sale | 15,907 | 13,430 |
Purchase of securities available for sale | (60,132) | (66,274) |
Proceeds from sale or maturity of securities available for sale | 16,070 | 77,947 |
Investment in bank owned life insurance | 0 | (2,000) |
Purchases of premises and equipment | (842) | (517) |
Purchase of Federal Reserve Bank stock | (2,257) | (506) |
Purchase of FHLB stock | (1,150) | (2,538) |
Cash acquired (disbursed) in acquisitions, net | 2,961 | (7,793) |
Net cash used in investing activities | (183,355) | (129,618) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposit accounts | 129,139 | 139,295 |
Repayment of FHLB advances and other borrowings, net | 0 | (16,421) |
Proceeds from FHLB advances | 17,446 | 0 |
Proceeds from issuance of common stock, net of issuance costs | 1,323 | 0 |
Proceeds from exercise of stock options | 48 | 113 |
Warrants exercised | 688 | 0 |
Repurchase of common stock | (93) | (2,757) |
Net cash provided by financing activities | 148,551 | 120,230 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (27,848) | (6,521) |
CASH AND CASH EQUIVALENTS, beginning of period | 110,925 | 126,813 |
CASH AND CASH EQUIVALENTS, end of period | 83,077 | 120,292 |
SUPPLEMENTAL CASH FLOW DISCLOSURES | ||
Interest paid | 5,979 | 2,924 |
Income taxes paid | 7,450 | 7,300 |
Assets acquired (liabilities assumed and capital created) in acquisitions (See Note 4): | ||
Investment securities | 53,752 | 0 |
FHLB and Other Stock | 2,369 | 0 |
Loans | 332,893 | 78,833 |
Core deposit intangible | 2,903 | 0 |
Deferred income tax | 4,794 | 0 |
Bank owned life insurance | 11,276 | 0 |
Goodwill | 27,882 | 5,522 |
Fixed assets | 2,134 | 74 |
Other assets | 2,402 | 702 |
Deposits | (336,018) | 0 |
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 | ||
Transfers from loans to other real estate owned | 0 | 360 |
Loans held for sale transfer to loans held for investment | $ 0 | $ 2,936 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 June 30, 2015 , December 31, 2014 and June 30, 2014 , the results of its operations and comprehensive income for the three months ended June 30, 2015 , March 31, 2015 and June 30, 2014 and the six months ended June 30, 2015 and 2014 and the changes in stockholders’ equity and cash flows for the six months ended June 30, 2015 and 2014 . Operating results or comprehensive income for the six months ended June 30, 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 Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Standards Adopted in 2015 In June 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-10, Technical Corrections and Improvements, to clarify the Accounting Standards Codification ("ASC"), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements. In January 2014, the FASB issued 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. 2014-04 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 Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 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 | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 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 $79.8 million , 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, $1.3 million fair market value of warrants assumed 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 $27.9 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: IDPK Book Value Fair Value Adjustments Fair 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 1,542 4,794 Bank owned life insurance 11,276 — 11,276 Core deposit intangible 904 1,999 2,903 Other assets 3,756 780 4,536 Total assets acquired $ 422,378 $ 631 $ 423,009 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 $ 418 51,895 Consideration paid 79,777 Goodwill recognized $ 27,882 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 Book Value Fair Value Adjustments Fair 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 six months ending June 30, 2015 include the operating results of IDPK and IFH since the acquisition date. The operating results of the Company for the six months ending June 30, 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: Six Months Ended June 30, 2015 2014 Net interest and other income $ 31,013 $ 30,354 Net income $ 6,838 $ 6,446 Basic earnings per share $ 0.30 $ 0.30 Diluted earnings per share $ 0.30 $ 0.29 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities were as follows: June 30, 2015 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ 120,392 $ 784 $ (745 ) $ 120,431 Mortgage-backed securities 160,764 312 (1,073 ) 160,003 Total securities available for sale $ 281,156 $ 1,096 $ (1,818 ) $ 280,434 December 31, 2014 Amortized Cost Unrealized Gain Unrealized Loss Estimated 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 June 30, 2014 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ 84,576 $ 1,211 $ (354 ) 85,433 Mortgage-backed securities 150,578 230 (1,125 ) 149,683 Total securities available for sale $ 235,154 $ 1,441 $ (1,479 ) $ 235,116 At June 30, 2015 , the Company had $11.3 million in Federal Home Loan Bank (“FHLB”) stock, $7.5 million in Federal Reserve Bank (“FRB”) stock, and $4 million in other stock, all carried at cost. During the six months ended June 30, 2015 , the Company had net sales of $10.5 million of FHLB stock through the FHLB stock purchase program. At June 30, 2015 , mortgage-backed securities (“MBS”) with an estimated par value of $65.2 million and a fair value of $66.8 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 $19.7 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. June 30, 2015 Less than 12 months 12 months or Longer Total Number Fair Value Gross Unrealized Holding Losses Number Fair Value Gross Unrealized Holding Losses Number Fair Value Gross Unrealized Holding Losses (dollars in thousands) Municipal bonds 109 $ 56,215 $ (636 ) 7 $ 3,728 $ (109 ) 116 $ 59,943 $ (745 ) Mortgage-backed securities 32 87,506 (548 ) 3 14,222 (525 ) 35 101,728 (1,073 ) Total 141 $ 143,721 $ (1,184 ) 10 $ 17,950 $ (634 ) 151 $ 161,671 $ (1,818 ) December 31, 2014 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (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 ) June 30, 2014 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (dollars in thousands) Municipal bonds 27 $ 14,011 $ (143 ) 44 $ 18,316 $ (211 ) 71 $ 32,327 $ (354 ) Mortgage-backed securities 11 37,316 (109 ) 12 52,235 (1,016 ) 23 89,551 (1,125 ) Total 38 $ 51,327 $ (252 ) 56 $ 70,551 $ (1,227 ) 94 $ 121,878 $ (1,479 ) The amortized cost and estimated fair value of investment securities available for sale at June 30, 2015 , by contractual maturity are shown in the table below. One Year or Less More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Investment securities available for sale: Municipal bonds $ 462 $ 465 $ 21,627 $ 21,554 $ 45,981 $ 46,111 $ 52,322 $ 52,301 $ 120,392 $ 120,431 Mortgage-backed securities — — — — 24,341 24,328 136,423 135,675 160,764 160,003 Total investment securities available for sale $ 462 $ 465 $ 21,627 $ 21,554 $ 70,322 $ 70,439 $ 188,745 $ 187,976 $ 281,156 $ 280,434 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 June 30, 2015 , the Company had accumulated other comprehensive loss of $722,000 , or $425,000 net of benefit, compared to accumulated other comprehensive income of $880,000 or $518,000 net of tax, at December 31, 2014 . |
Loans Held for Investment
Loans Held for Investment | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment The following table sets forth the composition of our loan portfolio in dollar amounts at the dates indicated: June 30, 2015 December 31, 2014 June 30, 2014 (in thousands) Business loans: Commercial and industrial $ 454,463 $ 428,207 $ 319,541 Commercial owner occupied (1) 382,537 210,995 216,784 SBA 50,306 28,404 15,115 Warehouse facilities 198,113 113,798 114,032 Real estate loans: Commercial non-owner occupied 402,786 359,213 360,288 Multi-family 400,237 262,965 251,512 One-to-four family (2) 84,283 122,795 132,020 Construction 124,448 89,682 47,034 Land 16,339 9,088 6,271 Other loans 4,811 3,298 3,753 Total gross loans held for investment (3) 2,118,323 1,628,445 1,466,350 Deferred loan origination costs and premiums, net 237 177 418 Allowance for loan losses (15,100 ) (12,200 ) (9,733 ) Loans held for investment, net $ 2,103,460 $ 1,616,422 $ 1,457,035 ______________________________ (1) Majority secured by real estate. (2) Includes second trust deeds. (3) Total gross loans for June 30, 2015 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank ("Canyon National") loans of $1.1 million , on Palm Desert National Bank ("Palm Desert National") loans of $1.1 million , on San Diego Trust Bank ("SDTB") loans of $144,000 , and on IDPK loans of $6.3 million and (ii) the mark-to-market premium on First Associations Bank ("FAB") loans of $24,000 . 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 $88.8 million for secured loans and $53.3 million for unsecured loans at June 30, 2015 . At June 30, 2015 , the Bank’s largest aggregate outstanding balance of loans to one borrower was $46.7 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: June 30, 2015 Canyon National Palm Desert National IDPK Total (in thousands) Business loans: Commercial and industrial $ 94 $ — $ 540 $ 634 Commercial owner occupied 535 — 2,335 2,870 Real estate loans: Commercial non-owner occupied 943 — 1,237 2,180 One-to-four family — — 92 92 Total purchase credit impaired $ 1,572 $ — $ 4,204 $ 5,776 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 June 30, 2015 , the Company had $5.8 million of purchased credit impaired loans, of which $1.6 million were placed on nonaccrual status. The following table summarizes the accretable yield on the purchased credit impaired loans for the six months ended June 30, 2015 : Six Months Ended June 30, 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 (106 ) — (75 ) (181 ) Disposals and other — (52 ) (4 ) (56 ) Change in accretable yield — — 149 149 Balance at the end of period $ 1,245 $ — $ 672 $ 1,917 Impaired Loans The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated: Impaired Loans Contractual Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2015 Business loans: Commercial and industrial $ 2,494 $ 1,684 $ 223 $ 1,461 $ 223 $ 1,797 $ — Commercial owner occupied 437 370 — 370 — 373 15 Real estate loans: Commercial non-owner occupied 693 443 — 443 — 446 21 One-to-four family 215 206 — 206 — 222 10 Land 37 23 — 23 — 8 — Totals $ 3,876 $ 2,726 $ 223 $ 2,503 $ 223 $ 2,846 $ 46 Impaired Loans Contractual Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans Average Recorded Investment Interest Income Recognized (in thousands) December 31, 2014 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 Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2014 Business loans: Commercial and industrial $ 59 $ 24 $ — $ 24 $ — $ 18 $ — Commercial owner occupied 444 417 — 417 — 627 25 SBA — — — — — 9 — Real estate loans: Commercial non-owner occupied 708 514 — 514 — 938 21 One-to-four family 625 575 270 305 104 591 15 Totals $ 1,836 $ 1,530 $ 270 $ 1,260 $ 104 $ 2,183 $ 61 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: June 30, 2015 December 31, 2014 June 30, 2014 (in thousands) Nonaccruing loans $ 2,471 $ 1,290 $ 1,345 Accruing loans 255 182 185 Total impaired loans $ 2,726 $ 1,472 $ 1,530 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 $2.5 million at June 30, 2015 , $1.3 million at December 31, 2014 , and $1.3 million at June 30, 2014 . The Company had no loans 90 days or more past due and still accruing at June 30, 2015 , December 31, 2014 or June 30, 2014 . The Company had no new TDRs during the quarter ended June 30, 2015 and June 30, 2014 and had one immaterial TDR outstanding related to a U.S. Small Business Administration (“SBA”) loan. Concentration of Credit Risk As of June 30, 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 Pass Special Mention Substandard Total Gross Loans June 30, 2015 (in thousands) Business loans: Commercial and industrial $ 449,461 $ 267 $ 4,735 $ 454,463 Commercial owner occupied 370,185 678 11,674 382,537 SBA 50,306 — — 50,306 Warehouse facilities 198,113 — — 198,113 Real estate loans: Commercial non-owner occupied 399,245 265 3,276 402,786 Multi-family 395,565 704 3,968 400,237 One-to-four family 83,671 — 612 84,283 Construction 124,448 — — 124,448 Land 15,143 — 1,196 16,339 Other loans 4,401 — 410 4,811 Totals $ 2,090,538 $ 1,914 $ 25,871 $ 2,118,323 Credit Risk Grades Pass Special Substandard Total Gross December 31, 2014 (in thousands) 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 Pass Special Substandard Total Gross June 30, 2014 (in thousands) Business loans: Commercial and industrial $ 317,713 $ — $ 1,828 $ 319,541 Commercial owner occupied 206,890 393 9,501 216,784 SBA 15,115 — — 15,115 Warehouse facilities 114,032 — — 114,032 Real estate loans: Commercial non-owner occupied 355,878 — 4,410 360,288 Multi-family 250,494 506 512 251,512 One-to-four family 131,330 — 690 132,020 Construction 47,034 — — 47,034 Land 6,271 — — 6,271 Other loans 3,753 — — 3,753 Totals $ 1,448,510 $ 899 $ 16,941 $ 1,466,350 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 June 30, 2015 (in thousands) Business loans: Commercial and industrial $ 452,383 $ 452 $ — $ 1,628 $ 454,463 $ 2,147 Commercial owner occupied 382,537 — — — 382,537 578 SBA 50,306 — — — 50,306 — Warehouse facilities 198,113 — — — 198,113 — Real estate loans: Commercial non-owner occupied 402,297 489 — — 402,786 1,454 Multi-family 400,237 — — — 400,237 — One-to-four family 84,218 2 — 63 84,283 88 Construction 124,448 — — — 124,448 — Land 16,316 — — 23 16,339 23 Other loans 4,783 — 28 — 4,811 92 Totals $ 2,115,638 $ 943 $ 28 $ 1,714 $ 2,118,323 $ 4,382 Days Past Due Non- Current 30-59 60-89 90+ Total Accruing December 31, 2014 (in thousands) 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 June 30, 2014 (in thousands) Business loans: Commercial and industrial $ 319,418 $ — $ 99 $ 24 $ 319,541 $ 24 Commercial owner occupied 216,367 — 417 — 216,784 549 SBA 15,115 — — — 15,115 — Warehouse facilities 114,032 — — — 114,032 — Real estate loans: Commercial non-owner occupied 360,288 — — — 360,288 910 Multi-family 251,512 — — — 251,512 — One-to-four family 131,258 236 478 48 132,020 458 Construction 47,034 — — — 47,034 — Land 6,271 — — — 6,271 — Other loans 3,753 — — — 3,753 — Totals $ 1,465,048 $ 236 $ 994 $ 72 $ 1,466,350 $ 1,941 |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Provision for Loan and Lease Losses [Abstract] | |
Allowance for Loan Losses | 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 84 , 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-1through 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 84 , 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-1through 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 84 , 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-1through 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-1through 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 six months ended for the periods indicated: Commercial and industrial Commercial owner occupied SBA Warehouse Facilities Commercial non-owner occupied Multi-family One-to-four family Construction Land Other loans Total (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 (789 ) — — — — — — — — — (789 ) Recoveries 24 — 1 — — — — — — 1 26 Provisions for (reduction in) loan losses 1,867 339 317 329 (44 ) 472 (189 ) 314 254 4 3,663 Balance, June 30, 2015 $ 5,302 $ 2,096 $ 886 $ 875 $ 1,963 $ 1,532 $ 653 $ 1,402 $ 362 $ 29 $ 15,100 Amount of allowance attributed to: Specifically evaluated impaired loans $ 223 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 223 General portfolio allocation 5,079 2,096 886 875 1,963 1,532 653 1,402 362 29 14,877 Loans individually evaluated for impairment 1,684 370 — — 443 — 206 — 23 — 2,726 Specific reserves to total loans individually evaluated for impairment 13.24 % — % — % — % — % — % — % — % — % — % 8.18 % Loans collectively evaluated for impairment $ 452,779 $ 382,167 $ 50,306 $ 198,113 $ 402,343 $ 400,237 $ 84,077 $ 124,448 $ 16,316 $ 4,811 $ 2,115,597 General reserves to total loans collectively evaluated for impairment 1.12 % 0.55 % 1.76 % 0.44 % 0.49 % 0.38 % 0.78 % 1.13 % 2.22 % 0.60 % 0.70 % Total gross loans $ 454,463 $ 382,537 $ 50,306 $ 198,113 $ 402,786 $ 400,237 $ 84,283 $ 124,448 $ 16,339 $ 4,811 $ 2,118,323 Total allowance to gross loans 1.17 % 0.55 % 1.76 % 0.44 % 0.49 % 0.38 % 0.77 % 1.13 % 2.22 % 0.60 % 0.71 % Commercial and industrial Commercial owner occupied SBA Warehouse Facilities Commercial non-owner occupied Multi-family One-to-four family Construction Land Other loans Total (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 21 — 3 — — — 30 — — 1 55 Provisions for (reduction in) loan losses 1,036 (72 ) 110 64 698 120 (299 ) 391 (60 ) (9 ) 1,979 Balance, June 30, 2014 $ 2,901 $ 1,746 $ 264 $ 456 $ 1,991 $ 937 $ 818 $ 527 $ 67 $ 26 $ 9,733 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ 104 $ — $ — $ — $ 104 General portfolio allocation 2,901 1,746 264 456 1,991 937 714 527 67 26 9,629 Loans individually evaluated for impairment 24 417 — — 514 — 575 — — — 1,530 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % 18.09 % — % — % — % 6.80 % Loans collectively evaluated for impairment $ 319,517 $ 216,367 $ 15,115 $ 114,032 $ 359,774 $ 251,512 $ 131,445 $ 47,034 $ 6,271 $ 3,753 $ 1,464,820 General reserves to total loans collectively evaluated for impairment 0.91 % 0.81 % 1.75 % 0.40 % 0.55 % 0.37 % 0.54 % 1.12 % 1.07 % 0.69 % 0.66 % Total gross loans $ 319,541 $ 216,784 $ 15,115 $ 114,032 $ 360,288 $ 251,512 $ 132,020 $ 47,034 $ 6,271 $ 3,753 $ 1,466,350 Total allowance to gross loans 0.91 % 0.81 % 1.75 % 0.40 % 0.55 % 0.37 % 0.62 % 1.12 % 1.07 % 0.69 % 0.66 % |
Subordinated Debentures
Subordinated Debentures | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures | 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 $50 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 million of Floating Rate Trust Preferred Securities (“Trust Preferred Securities”) issued by PPBI Trust I in March 2004. The net proceeds from the offering of Trust Preferred Securities were contributed as capital to the Bank to support further growth. Interest is payable quarterly on the Subordinated Debentures at three-month LIBOR plus 2.75% per annum, for an effective rate of 2.98% per annum as of June 30, 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 | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 Six Months Ended June 30, March 31, June 30, June 30, 2015 2015 2014 2015 2014 Stock options excluded 780,659 814,369 503,676 800,806 593,387 The following tables set forth the Company’s unaudited earnings per share calculations for the periods indicated: Three Months Ended June 30, 2015 March 31, 2015 June 30, 2014 Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net Income Shares Per Share Amount (dollars in thousands, except per share data) Net income $ 7,825 $ 1,789 $ 4,643 Basic income available to common stockholders 7,825 21,493,641 $ 0.36 1,789 20,091,924 $ 0.09 4,643 17,124,337 $ 0.28 Effect of dilutive stock option grants and warrants — 335,235 — 290,908 — 352,053 Diluted income available to common stockholders plus assumed conversions $ 7,825 21,828,876 $ 0.36 1,789 20,382,832 $ 0.09 $ 4,643 17,476,390 $ 0.27 Six Months Ended June 30, 2015 2014 Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 9,613 $ 7,275 Basic income available to common stockholders 9,613 20,796,655 $ 0.46 7,275 17,083,194 $ 0.43 Effect of dilutive stock option grants and warrants — 329,887 — 339,734 Diluted income available to common stockholders plus assumed conversions $ 9,613 21,126,542 $ 0.46 7,275 17,422,928 $ 0.42 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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 June 30, 2015 , December 31, 2014 and June 30, 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 June 30, 2015 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 83,077 $ 83,077 $ — $ — $ 83,077 Securities available for sale 280,434 — 280,434 — 280,434 FHLB, Federal Reserve Bank, and other stock, at cost 22,843 22,843 — — 22,843 Loans held for investment, net 2,103,460 — — 2,150,673 2,150,673 Accrued interest receivable 9,072 9,072 — — 9,072 Other real estate owned 711 — — 711 711 Liabilities: Deposit accounts 2,095,983 1,575,404 522,157 — 2,097,561 FHLB advances 118,000 118,208 — — 118,208 Other borrowings 49,389 — 48,936 — 48,936 Subordinated debentures 70,310 — 68,675 — 68,675 Accrued interest payable 212 212 — — 212 Notional Amount Level 1 Level 2 Level 3 Cost to Cede or Assume Off-balance sheet commitments and standby letters of credit $ 380,783 $ — $ 38,078 $ — $ 38,078 At December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Estimated 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 FHLB, Federal Reserve Bank, and other 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 Amount Level 1 Level 2 Level 3 Cost to Cede or Assume Off-balance sheet commitments and standby letters of credit $ 355,024 $ — $ 35,502 $ — $ 35,502 At June 30, 2014 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 120,292 $ 120,292 $ — $ — $ 120,292 Securities available for sale 235,116 — 235,116 — 235,116 FHLB, Federal Reserve Bank, and other stock, at cost 18,494 18,494 — — 18,494 Loans held for investment, net 1,457,035 — — 1,461,796 1,461,796 Accrued interest receivable 6,645 6,645 — — 6,645 Other real estate owned 752 — — 752 752 Liabilities: Deposit accounts 1,445,581 1,102,419 371,132 — 1,473,551 FHLB advances 210,000 210,000 — — 210,000 Other borrowings 45,287 — 47,538 — 47,538 Subordinated debentures 10,310 — 4,592 — 4,592 Accrued interest payable 177 177 — — 177 Notional Amount Level 1 Level 2 Level 3 Cost to Cede Off-balance sheet commitments and standby letters of credit $ 293,228 $ — $ 29,323 $ — $ 29,323 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 June 30, 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: June 30, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ — $ 120,431 $ — $ 120,431 Mortgage-backed securities — 160,003 — 160,003 Total securities available for sale $ — $ 280,434 $ — $ 280,434 June 30, 2014 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ — $ 85,433 $ — 85,433 Mortgage-backed securities — 149,683 — 149,683 Total securities available for sale $ — $ 235,116 $ — $ 235,116 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: June 30, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans $ — $ — $ 2,548 $ 2,548 Other real estate owned — — 711 711 Total assets $ — $ — $ 3,259 $ 3,259 June 30, 2014 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans $ — $ — $ 1,003 $ 1,003 Other real estate owned — — 752 752 Total assets $ — $ — $ 1,755 $ 1,755 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: June 30, 2015 Range Fair Value Valuation Techniques Rate Maturity (years) Unobservable Inputs Collateral dependent impaired loans: Business loans: Commercial and industrial $ 1,684 Collateral valuation 6.70% 8 0 - 10% Commercial owner occupied 370 Collateral valuation 6.75% 7 0 - 10% Real estate loans: Commercial non-owner occupied 443 Collateral valuation 7.00% 12 0 - 15% One-to-four family 28 Collateral valuation 8.00 - 15.00% 5 - 16 0 - 10% Land 23 Collateral valuation 13.00% 15 0 - 10% Total collateral dependent impaired loans $ 2,548 Other real estate owned Land $ 711 Collateral valuation — — 0 - 10% One-to-four family — Collateral valuation — — 0 - 10% Total other real estate owned $ 711 June 30, 2014 Range Fair Value Valuation Techniques Rate Maturity (years) Unobservable Inputs Collateral dependent impaired loans: Business loans: Commercial and industrial $ 24 Collateral valuation 6.00% 3 0 - 10% Commercial owner occupied 417 Collateral valuation 11.75% 8 0 - 10% Real estate loans: Commercial non-owner occupied 514 Collateral valuation 7.00% 13 0 - 15% One-to-four family 48 Collateral valuation 2.26% - 15.00% 2-22 0 - 10% Total collateral dependent impaired loans $ 1,003 Other real estate owned Land $ 752 Collateral valuation — — 0-10% Total other real estate owned $ 752 |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
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) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | The following table represents the assets acquired and liabilities assumed of 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 Book Value Fair Value Adjustments Fair 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 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: IDPK Book Value Fair Value Adjustments Fair 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 1,542 4,794 Bank owned life insurance 11,276 — 11,276 Core deposit intangible 904 1,999 2,903 Other assets 3,756 780 4,536 Total assets acquired $ 422,378 $ 631 $ 423,009 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 $ 418 51,895 Consideration paid 79,777 Goodwill recognized $ 27,882 |
Schedule of contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | 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 |
Summary of pro forma net interest and other income, net income and earnings per share | There were no material, nonrecurring adjustments to the pro forma net interest and other income, net income and earnings per share presented below: Six Months Ended June 30, 2015 2014 Net interest and other income $ 31,013 $ 30,354 Net income $ 6,838 $ 6,446 Basic earnings per share $ 0.30 $ 0.30 Diluted earnings per share $ 0.30 $ 0.29 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair value of securities | The amortized cost and estimated fair value of securities were as follows: June 30, 2015 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ 120,392 $ 784 $ (745 ) $ 120,431 Mortgage-backed securities 160,764 312 (1,073 ) 160,003 Total securities available for sale $ 281,156 $ 1,096 $ (1,818 ) $ 280,434 December 31, 2014 Amortized Cost Unrealized Gain Unrealized Loss Estimated 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 June 30, 2014 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ 84,576 $ 1,211 $ (354 ) 85,433 Mortgage-backed securities 150,578 230 (1,125 ) 149,683 Total securities available for sale $ 235,154 $ 1,441 $ (1,479 ) $ 235,116 |
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 | 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. June 30, 2015 Less than 12 months 12 months or Longer Total Number Fair Value Gross Unrealized Holding Losses Number Fair Value Gross Unrealized Holding Losses Number Fair Value Gross Unrealized Holding Losses (dollars in thousands) Municipal bonds 109 $ 56,215 $ (636 ) 7 $ 3,728 $ (109 ) 116 $ 59,943 $ (745 ) Mortgage-backed securities 32 87,506 (548 ) 3 14,222 (525 ) 35 101,728 (1,073 ) Total 141 $ 143,721 $ (1,184 ) 10 $ 17,950 $ (634 ) 151 $ 161,671 $ (1,818 ) December 31, 2014 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (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 ) June 30, 2014 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (dollars in thousands) Municipal bonds 27 $ 14,011 $ (143 ) 44 $ 18,316 $ (211 ) 71 $ 32,327 $ (354 ) Mortgage-backed securities 11 37,316 (109 ) 12 52,235 (1,016 ) 23 89,551 (1,125 ) Total 38 $ 51,327 $ (252 ) 56 $ 70,551 $ (1,227 ) 94 $ 121,878 $ (1,479 ) |
Schedule of amortized cost and estimated fair value of investment securities available for sale by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale at June 30, 2015 , by contractual maturity are shown in the table below. One Year or Less More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Investment securities available for sale: Municipal bonds $ 462 $ 465 $ 21,627 $ 21,554 $ 45,981 $ 46,111 $ 52,322 $ 52,301 $ 120,392 $ 120,431 Mortgage-backed securities — — — — 24,341 24,328 136,423 135,675 160,764 160,003 Total investment securities available for sale $ 462 $ 465 $ 21,627 $ 21,554 $ 70,322 $ 70,439 $ 188,745 $ 187,976 $ 281,156 $ 280,434 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of components of loans held for investment | The following table sets forth the composition of our loan portfolio in dollar amounts at the dates indicated: June 30, 2015 December 31, 2014 June 30, 2014 (in thousands) Business loans: Commercial and industrial $ 454,463 $ 428,207 $ 319,541 Commercial owner occupied (1) 382,537 210,995 216,784 SBA 50,306 28,404 15,115 Warehouse facilities 198,113 113,798 114,032 Real estate loans: Commercial non-owner occupied 402,786 359,213 360,288 Multi-family 400,237 262,965 251,512 One-to-four family (2) 84,283 122,795 132,020 Construction 124,448 89,682 47,034 Land 16,339 9,088 6,271 Other loans 4,811 3,298 3,753 Total gross loans held for investment (3) 2,118,323 1,628,445 1,466,350 Deferred loan origination costs and premiums, net 237 177 418 Allowance for loan losses (15,100 ) (12,200 ) (9,733 ) Loans held for investment, net $ 2,103,460 $ 1,616,422 $ 1,457,035 ______________________________ (1) Majority secured by real estate. (2) Includes second trust deeds. (3) Total gross loans for June 30, 2015 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank ("Canyon National") loans of $1.1 million , on Palm Desert National Bank ("Palm Desert National") loans of $1.1 million , on San Diego Trust Bank ("SDTB") loans of $144,000 , and on IDPK loans of $6.3 million and (ii) the mark-to-market premium on First Associations Bank ("FAB") loans of $24,000 . |
Summary of Company's investment in purchased credit impaired loans | 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: June 30, 2015 Canyon National Palm Desert National IDPK Total (in thousands) Business loans: Commercial and industrial $ 94 $ — $ 540 $ 634 Commercial owner occupied 535 — 2,335 2,870 Real estate loans: Commercial non-owner occupied 943 — 1,237 2,180 One-to-four family — — 92 92 Total purchase credit impaired $ 1,572 $ — $ 4,204 $ 5,776 |
Summary of accretable yield on purchased credit impaired | The following table summarizes the accretable yield on the purchased credit impaired loans for the six months ended June 30, 2015 : Six Months Ended June 30, 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 (106 ) — (75 ) (181 ) Disposals and other — (52 ) (4 ) (56 ) Change in accretable yield — — 149 149 Balance at the end of period $ 1,245 $ — $ 672 $ 1,917 |
Summary of Company's investment in impaired loans | The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated: Impaired Loans Contractual Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2015 Business loans: Commercial and industrial $ 2,494 $ 1,684 $ 223 $ 1,461 $ 223 $ 1,797 $ — Commercial owner occupied 437 370 — 370 — 373 15 Real estate loans: Commercial non-owner occupied 693 443 — 443 — 446 21 One-to-four family 215 206 — 206 — 222 10 Land 37 23 — 23 — 8 — Totals $ 3,876 $ 2,726 $ 223 $ 2,503 $ 223 $ 2,846 $ 46 Impaired Loans Contractual Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans Average Recorded Investment Interest Income Recognized (in thousands) December 31, 2014 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 Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2014 Business loans: Commercial and industrial $ 59 $ 24 $ — $ 24 $ — $ 18 $ — Commercial owner occupied 444 417 — 417 — 627 25 SBA — — — — — 9 — Real estate loans: Commercial non-owner occupied 708 514 — 514 — 938 21 One-to-four family 625 575 270 305 104 591 15 Totals $ 1,836 $ 1,530 $ 270 $ 1,260 $ 104 $ 2,183 $ 61 |
Summary of additional detail on components of impaired loans | The following table provides additional detail on the components of impaired loans at the period end indicated: June 30, 2015 December 31, 2014 June 30, 2014 (in thousands) Nonaccruing loans $ 2,471 $ 1,290 $ 1,345 Accruing loans 255 182 185 Total impaired loans $ 2,726 $ 1,472 $ 1,530 |
Summary of loan portfolio by the Company's internal risk grading system | 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 Pass Special Mention Substandard Total Gross Loans June 30, 2015 (in thousands) Business loans: Commercial and industrial $ 449,461 $ 267 $ 4,735 $ 454,463 Commercial owner occupied 370,185 678 11,674 382,537 SBA 50,306 — — 50,306 Warehouse facilities 198,113 — — 198,113 Real estate loans: Commercial non-owner occupied 399,245 265 3,276 402,786 Multi-family 395,565 704 3,968 400,237 One-to-four family 83,671 — 612 84,283 Construction 124,448 — — 124,448 Land 15,143 — 1,196 16,339 Other loans 4,401 — 410 4,811 Totals $ 2,090,538 $ 1,914 $ 25,871 $ 2,118,323 Credit Risk Grades Pass Special Substandard Total Gross December 31, 2014 (in thousands) 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 Pass Special Substandard Total Gross June 30, 2014 (in thousands) Business loans: Commercial and industrial $ 317,713 $ — $ 1,828 $ 319,541 Commercial owner occupied 206,890 393 9,501 216,784 SBA 15,115 — — 15,115 Warehouse facilities 114,032 — — 114,032 Real estate loans: Commercial non-owner occupied 355,878 — 4,410 360,288 Multi-family 250,494 506 512 251,512 One-to-four family 131,330 — 690 132,020 Construction 47,034 — — 47,034 Land 6,271 — — 6,271 Other loans 3,753 — — 3,753 Totals $ 1,448,510 $ 899 $ 16,941 $ 1,466,350 |
Schedule of delinquencies in the Company's loan portfolio | 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 June 30, 2015 (in thousands) Business loans: Commercial and industrial $ 452,383 $ 452 $ — $ 1,628 $ 454,463 $ 2,147 Commercial owner occupied 382,537 — — — 382,537 578 SBA 50,306 — — — 50,306 — Warehouse facilities 198,113 — — — 198,113 — Real estate loans: Commercial non-owner occupied 402,297 489 — — 402,786 1,454 Multi-family 400,237 — — — 400,237 — One-to-four family 84,218 2 — 63 84,283 88 Construction 124,448 — — — 124,448 — Land 16,316 — — 23 16,339 23 Other loans 4,783 — 28 — 4,811 92 Totals $ 2,115,638 $ 943 $ 28 $ 1,714 $ 2,118,323 $ 4,382 Days Past Due Non- Current 30-59 60-89 90+ Total Accruing December 31, 2014 (in thousands) 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 June 30, 2014 (in thousands) Business loans: Commercial and industrial $ 319,418 $ — $ 99 $ 24 $ 319,541 $ 24 Commercial owner occupied 216,367 — 417 — 216,784 549 SBA 15,115 — — — 15,115 — Warehouse facilities 114,032 — — — 114,032 — Real estate loans: Commercial non-owner occupied 360,288 — — — 360,288 910 Multi-family 251,512 — — — 251,512 — One-to-four family 131,258 236 478 48 132,020 458 Construction 47,034 — — — 47,034 — Land 6,271 — — — 6,271 — Other loans 3,753 — — — 3,753 — Totals $ 1,465,048 $ 236 $ 994 $ 72 $ 1,466,350 $ 1,941 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Provision for Loan and Lease Losses [Abstract] | |
Summary of allocation of the allowance as well as the activity in the allowance attributed to various segments in the loan portfolio | 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 six months ended for the periods indicated: Commercial and industrial Commercial owner occupied SBA Warehouse Facilities Commercial non-owner occupied Multi-family One-to-four family Construction Land Other loans Total (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 (789 ) — — — — — — — — — (789 ) Recoveries 24 — 1 — — — — — — 1 26 Provisions for (reduction in) loan losses 1,867 339 317 329 (44 ) 472 (189 ) 314 254 4 3,663 Balance, June 30, 2015 $ 5,302 $ 2,096 $ 886 $ 875 $ 1,963 $ 1,532 $ 653 $ 1,402 $ 362 $ 29 $ 15,100 Amount of allowance attributed to: Specifically evaluated impaired loans $ 223 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 223 General portfolio allocation 5,079 2,096 886 875 1,963 1,532 653 1,402 362 29 14,877 Loans individually evaluated for impairment 1,684 370 — — 443 — 206 — 23 — 2,726 Specific reserves to total loans individually evaluated for impairment 13.24 % — % — % — % — % — % — % — % — % — % 8.18 % Loans collectively evaluated for impairment $ 452,779 $ 382,167 $ 50,306 $ 198,113 $ 402,343 $ 400,237 $ 84,077 $ 124,448 $ 16,316 $ 4,811 $ 2,115,597 General reserves to total loans collectively evaluated for impairment 1.12 % 0.55 % 1.76 % 0.44 % 0.49 % 0.38 % 0.78 % 1.13 % 2.22 % 0.60 % 0.70 % Total gross loans $ 454,463 $ 382,537 $ 50,306 $ 198,113 $ 402,786 $ 400,237 $ 84,283 $ 124,448 $ 16,339 $ 4,811 $ 2,118,323 Total allowance to gross loans 1.17 % 0.55 % 1.76 % 0.44 % 0.49 % 0.38 % 0.77 % 1.13 % 2.22 % 0.60 % 0.71 % Commercial and industrial Commercial owner occupied SBA Warehouse Facilities Commercial non-owner occupied Multi-family One-to-four family Construction Land Other loans Total (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 21 — 3 — — — 30 — — 1 55 Provisions for (reduction in) loan losses 1,036 (72 ) 110 64 698 120 (299 ) 391 (60 ) (9 ) 1,979 Balance, June 30, 2014 $ 2,901 $ 1,746 $ 264 $ 456 $ 1,991 $ 937 $ 818 $ 527 $ 67 $ 26 $ 9,733 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ 104 $ — $ — $ — $ 104 General portfolio allocation 2,901 1,746 264 456 1,991 937 714 527 67 26 9,629 Loans individually evaluated for impairment 24 417 — — 514 — 575 — — — 1,530 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % 18.09 % — % — % — % 6.80 % Loans collectively evaluated for impairment $ 319,517 $ 216,367 $ 15,115 $ 114,032 $ 359,774 $ 251,512 $ 131,445 $ 47,034 $ 6,271 $ 3,753 $ 1,464,820 General reserves to total loans collectively evaluated for impairment 0.91 % 0.81 % 1.75 % 0.40 % 0.55 % 0.37 % 0.54 % 1.12 % 1.07 % 0.69 % 0.66 % Total gross loans $ 319,541 $ 216,784 $ 15,115 $ 114,032 $ 360,288 $ 251,512 $ 132,020 $ 47,034 $ 6,271 $ 3,753 $ 1,466,350 Total allowance to gross loans 0.91 % 0.81 % 1.75 % 0.40 % 0.55 % 0.37 % 0.62 % 1.12 % 1.07 % 0.69 % 0.66 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of number of stock options excluded from the computations of diluted earnings per share | The following table sets forth the number of stock options excluded for the periods indicated: Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2015 2015 2014 2015 2014 Stock options excluded 780,659 814,369 503,676 800,806 593,387 |
Schedule of Company's unaudited earnings per share calculations | The following tables set forth the Company’s unaudited earnings per share calculations for the periods indicated: Three Months Ended June 30, 2015 March 31, 2015 June 30, 2014 Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net Income Shares Per Share Amount (dollars in thousands, except per share data) Net income $ 7,825 $ 1,789 $ 4,643 Basic income available to common stockholders 7,825 21,493,641 $ 0.36 1,789 20,091,924 $ 0.09 4,643 17,124,337 $ 0.28 Effect of dilutive stock option grants and warrants — 335,235 — 290,908 — 352,053 Diluted income available to common stockholders plus assumed conversions $ 7,825 21,828,876 $ 0.36 1,789 20,382,832 $ 0.09 $ 4,643 17,476,390 $ 0.27 Six Months Ended June 30, 2015 2014 Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 9,613 $ 7,275 Basic income available to common stockholders 9,613 20,796,655 $ 0.46 7,275 17,083,194 $ 0.43 Effect of dilutive stock option grants and warrants — 329,887 — 339,734 Diluted income available to common stockholders plus assumed conversions $ 9,613 21,126,542 $ 0.46 7,275 17,422,928 $ 0.42 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value of financial instruments | The fair value estimates presented herein are based on pertinent information available to management as of the periods indicated. At June 30, 2015 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 83,077 $ 83,077 $ — $ — $ 83,077 Securities available for sale 280,434 — 280,434 — 280,434 FHLB, Federal Reserve Bank, and other stock, at cost 22,843 22,843 — — 22,843 Loans held for investment, net 2,103,460 — — 2,150,673 2,150,673 Accrued interest receivable 9,072 9,072 — — 9,072 Other real estate owned 711 — — 711 711 Liabilities: Deposit accounts 2,095,983 1,575,404 522,157 — 2,097,561 FHLB advances 118,000 118,208 — — 118,208 Other borrowings 49,389 — 48,936 — 48,936 Subordinated debentures 70,310 — 68,675 — 68,675 Accrued interest payable 212 212 — — 212 Notional Amount Level 1 Level 2 Level 3 Cost to Cede or Assume Off-balance sheet commitments and standby letters of credit $ 380,783 $ — $ 38,078 $ — $ 38,078 At December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Estimated 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 FHLB, Federal Reserve Bank, and other 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 Amount Level 1 Level 2 Level 3 Cost to Cede or Assume Off-balance sheet commitments and standby letters of credit $ 355,024 $ — $ 35,502 $ — $ 35,502 At June 30, 2014 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 120,292 $ 120,292 $ — $ — $ 120,292 Securities available for sale 235,116 — 235,116 — 235,116 FHLB, Federal Reserve Bank, and other stock, at cost 18,494 18,494 — — 18,494 Loans held for investment, net 1,457,035 — — 1,461,796 1,461,796 Accrued interest receivable 6,645 6,645 — — 6,645 Other real estate owned 752 — — 752 752 Liabilities: Deposit accounts 1,445,581 1,102,419 371,132 — 1,473,551 FHLB advances 210,000 210,000 — — 210,000 Other borrowings 45,287 — 47,538 — 47,538 Subordinated debentures 10,310 — 4,592 — 4,592 Accrued interest payable 177 177 — — 177 |
Schedule of Off-balance sheet commitments and standby letters of credit | Notional Amount Level 1 Level 2 Level 3 Cost to Cede Off-balance sheet commitments and standby letters of credit $ 293,228 $ — $ 29,323 $ — $ 29,323 |
Schedule of Company's financial instruments measured at fair value on a recurring basis | 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: June 30, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ — $ 120,431 $ — $ 120,431 Mortgage-backed securities — 160,003 — 160,003 Total securities available for sale $ — $ 280,434 $ — $ 280,434 June 30, 2014 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ — $ 85,433 $ — 85,433 Mortgage-backed securities — 149,683 — 149,683 Total securities available for sale $ — $ 235,116 $ — $ 235,116 |
Schedule of Company's assets measured at fair value on a non-recurring basis | 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: June 30, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans $ — $ — $ 2,548 $ 2,548 Other real estate owned — — 711 711 Total assets $ — $ — $ 3,259 $ 3,259 June 30, 2014 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans $ — $ — $ 1,003 $ 1,003 Other real estate owned — — 752 752 Total assets $ — $ — $ 1,755 $ 1,755 |
Schedule of quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis | 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: June 30, 2015 Range Fair Value Valuation Techniques Rate Maturity (years) Unobservable Inputs Collateral dependent impaired loans: Business loans: Commercial and industrial $ 1,684 Collateral valuation 6.70% 8 0 - 10% Commercial owner occupied 370 Collateral valuation 6.75% 7 0 - 10% Real estate loans: Commercial non-owner occupied 443 Collateral valuation 7.00% 12 0 - 15% One-to-four family 28 Collateral valuation 8.00 - 15.00% 5 - 16 0 - 10% Land 23 Collateral valuation 13.00% 15 0 - 10% Total collateral dependent impaired loans $ 2,548 Other real estate owned Land $ 711 Collateral valuation — — 0 - 10% One-to-four family — Collateral valuation — — 0 - 10% Total other real estate owned $ 711 June 30, 2014 Range Fair Value Valuation Techniques Rate Maturity (years) Unobservable Inputs Collateral dependent impaired loans: Business loans: Commercial and industrial $ 24 Collateral valuation 6.00% 3 0 - 10% Commercial owner occupied 417 Collateral valuation 11.75% 8 0 - 10% Real estate loans: Commercial non-owner occupied 514 Collateral valuation 7.00% 13 0 - 15% One-to-four family 48 Collateral valuation 2.26% - 15.00% 2-22 0 - 10% Total collateral dependent impaired loans $ 1,003 Other real estate owned Land $ 752 Collateral valuation — — 0-10% Total other real estate owned $ 752 |
Significant Accounting Polici26
Significant Accounting Policies (Details) - Core deposit | 6 Months Ended |
Jun. 30, 2015 | |
Minimum | |
Significant Accounting Policies | |
Estimated useful lives (in years) | 6 years |
Maximum | |
Significant Accounting Policies | |
Estimated useful lives (in years) | 10 years |
Acquisitions (Details)
Acquisitions (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Maximum | |
Acquisitions | |
Extension period for measurement for fair values (in years) | 1 year |
Acquisitions Independence Bank
Acquisitions Independence Bank Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 26, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Acquisitions | ||||
Goodwill | $ 50,832 | $ 22,950 | $ 22,950 | |
IDPK | ||||
Acquisitions | ||||
Consideration paid | $ 79,777 | |||
Cash consideration for common stockholders | 6,100 | |||
Cash consideration for holders of stock options and warrants | 1,500 | |||
Warrants assumed | $ 1,300 | |||
Number of shares of common stock issued as consideration | 4,480,645 | |||
Value of shares of common stock issued as consideration | $ 70,900 | |||
Closing stock price of common stock | $ 15.83 | |||
Goodwill | $ 27,882 |
Acquisitions Infinity Franchise
Acquisitions Infinity Franchise Holdings Acquisition (Details) $ / shares in Units, $ in Thousands | Jan. 30, 2014USD ($)entity$ / sharesshares | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) |
Acquisitions | ||||
Delinquent loans or adversely classified assets | $ 4,382 | $ 1,444 | $ 1,941 | |
Goodwill | 50,832 | $ 22,950 | $ 22,950 | |
Total purchase credit impaired loans | $ 5,776 | |||
Infinity Franchise Holdings Acquisition | ||||
Acquisitions | ||||
Consideration paid | $ 17,360 | |||
Cash consideration | $ 8,300 | |||
Number of shares of common stock issued as consideration | shares | 562,469 | |||
Stock price of the acquired entity (in dollars per share) | $ / shares | $ 16.02 | |||
Period prior to announcement of the transaction for which average closing price is considered to calculate value of shares to be issued (in days) | 10 days | |||
Delinquent loans or adversely classified assets | $ 0 | |||
Goodwill | $ 5,522 | |||
Number of entities in business combination | entity | 2 | |||
Total purchase credit impaired loans | $ 0 |
Acquisitions Assets Acquired an
Acquisitions Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 26, 2015 | Jan. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Acquisitions | |||||
Deferred loan costs | $ 0 | ||||
Allowance for loan losses | $ 0 | 0 | |||
Goodwill | $ 50,832 | $ 22,950 | $ 22,950 | ||
IDPK | |||||
Acquisitions | |||||
Cash and cash equivalents | 10,486 | ||||
Investment securities | 56,121 | ||||
Loans, gross | 332,893 | ||||
Deferred income taxes | 4,794 | ||||
Bank owned life insurance | 11,276 | ||||
Core deposit intangible | 2,903 | ||||
Other assets | 4,536 | ||||
Total assets acquired | 423,009 | ||||
Deposits | 336,018 | ||||
FHLB advances | 33,300 | ||||
Other liabilities | 1,796 | ||||
Total liabilities assumed | 371,114 | ||||
Excess of assets acquired over liabilities assumed | 51,895 | ||||
Consideration paid | 79,777 | ||||
Goodwill | 27,882 | ||||
Infinity Franchise Holdings Acquisition | |||||
Acquisitions | |||||
Cash and cash equivalents | 555 | ||||
Loans, gross | 78,833 | ||||
Other assets | 776 | ||||
Total assets acquired | 80,164 | ||||
Bank loan | 67,617 | ||||
Accrued compensation | 495 | ||||
Other liabilities | 214 | ||||
Total liabilities assumed | 68,326 | ||||
Excess of assets acquired over liabilities assumed | 11,838 | ||||
Consideration paid | 17,360 | ||||
Goodwill | 5,522 | ||||
IFH Book Value | IDPK | |||||
Acquisitions | |||||
Cash and cash equivalents | 10,486 | ||||
Investment securities | 56,503 | ||||
Loans, gross | 339,502 | ||||
Allowance for loan losses | (3,301) | ||||
Deferred income taxes | 3,252 | ||||
Bank owned life insurance | 11,276 | ||||
Core deposit intangible | 904 | ||||
Other assets | 3,756 | ||||
Total assets acquired | 422,378 | ||||
Deposits | 335,685 | ||||
FHLB advances | 33,300 | ||||
Other liabilities | 1,916 | ||||
Total liabilities assumed | 370,901 | ||||
Excess of assets acquired over liabilities assumed | 51,477 | ||||
IFH Book Value | Infinity Franchise Holdings Acquisition | |||||
Acquisitions | |||||
Cash and cash equivalents | 555 | ||||
Loans, gross | 78,833 | ||||
Deferred loan costs | 1,082 | ||||
Allowance for loan losses | (268) | ||||
Other assets | 776 | ||||
Total assets acquired | 80,978 | ||||
Bank loan | 67,617 | ||||
Accrued compensation | 495 | ||||
Other liabilities | 214 | ||||
Total liabilities assumed | 68,326 | ||||
Excess of assets acquired over liabilities assumed | 12,652 | ||||
Fair Value Adjustments | IDPK | |||||
Acquisitions | |||||
Cash and cash equivalents | 0 | ||||
Investment securities | (382) | ||||
Loans, gross | (6,609) | ||||
Allowance for loan losses | 3,301 | ||||
Deferred income taxes | 1,542 | ||||
Bank owned life insurance | 0 | ||||
Core deposit intangible | 1,999 | ||||
Other assets | 780 | ||||
Total assets acquired | 631 | ||||
Deposits | 333 | ||||
FHLB advances | 0 | ||||
Other liabilities | (120) | ||||
Total liabilities assumed | 213 | ||||
Excess of assets acquired over liabilities assumed | $ 418 | ||||
Fair Value Adjustments | Infinity Franchise Holdings Acquisition | |||||
Acquisitions | |||||
Cash and cash equivalents | 0 | ||||
Loans, gross | 0 | ||||
Deferred loan costs | (1,082) | ||||
Allowance for loan losses | 268 | ||||
Other assets | 0 | ||||
Total assets acquired | (814) | ||||
Bank loan | 0 | ||||
Accrued compensation | 0 | ||||
Other liabilities | 0 | ||||
Total liabilities assumed | 0 | ||||
Excess of assets acquired over liabilities assumed | $ (814) |
Acquisitions Loan Information (
Acquisitions Loan Information (Details) - Acquired Loans $ in Thousands | Jun. 30, 2015USD ($) |
Infinity Franchise Holdings Acquisition | |
Acquisitions | |
Contractual amounts due | $ 98,320 |
Cash flows not expected to be collected | 0 |
Expected cash flows | 98,320 |
Interest component of expected cash flows | 19,487 |
Fair value of acquired loans | 78,833 |
IDPK | |
Acquisitions | |
Contractual amounts due | 453,987 |
Cash flows not expected to be collected | 3,795 |
Expected cash flows | 450,192 |
Interest component of expected cash flows | 117,299 |
Fair value of acquired loans | $ 332,893 |
Acquisitions Pro Forma Informat
Acquisitions Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Business Combinations [Abstract] | ||
Net interest and other income | $ 31,013 | $ 30,354 |
Net income | $ 6,838 | $ 6,446 |
Basic earnings per share (in dollars per share) | $ 0.30 | $ 0.30 |
Diluted earnings per share (in dollars per share) | $ 0.30 | $ 0.29 |
Investment Securities Amortized
Investment Securities Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Investment securities available for sale: | |||
Total | $ 281,156 | $ 200,758 | $ 235,154 |
Unrealized Gain | 1,096 | 1,667 | 1,441 |
Unrealized Loss | (1,818) | (787) | (1,479) |
Investment securities available for sale | 280,434 | 201,638 | 235,116 |
Municipal bonds | |||
Investment securities available for sale: | |||
Total | 120,392 | 88,599 | 84,576 |
Unrealized Gain | 784 | 1,235 | 1,211 |
Unrealized Loss | (745) | (173) | (354) |
Investment securities available for sale | 120,431 | 89,661 | 85,433 |
Mortgage-backed securities | |||
Investment securities available for sale: | |||
Total | 160,764 | 112,159 | 150,578 |
Unrealized Gain | 312 | 432 | 230 |
Unrealized Loss | (1,073) | (614) | (1,125) |
Investment securities available for sale | $ 160,003 | $ 111,977 | $ 149,683 |
Investment Securities Narrative
Investment Securities Narrative (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)purchase_agreement | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | |
Investment Securities | |||
FHLB stock | $ 11,300 | ||
FRB stock | 7,500 | ||
Other stock | 4,000 | ||
Excess FHLB stock with the entity repurchased by FHLB through their stock repurchase program | $ 10,500 | ||
Number of inverse putable reverse repurchase of the Bank's secured by collateral | purchase_agreement | 3 | ||
Value of inverse putable reverse repurchases secured by collateral | $ 28,500 | ||
Accumulated other comprehensive income (loss) before tax amount | 722 | $ 880 | |
Accumulated other comprehensive income, net of tax | (425) | $ 518 | $ (22) |
HOA | |||
Investment Securities | |||
Value of inverse putable reverse repurchases secured by collateral | 19,700 | ||
Mortgage-backed securities | |||
Investment Securities | |||
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 65,200 | ||
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $ 66,800 |
Investment Securities Investmen
Investment Securities Investment Category and Length of Time (Details) $ in Thousands | Jun. 30, 2015USD ($)investment_security | Dec. 31, 2014USD ($)investment_security | Jun. 30, 2014USD ($)investment_security |
Investment Securities Available-for-Sale, Total temporary impaired securities | |||
Less than 12 months, Number | investment_security | 141 | 42 | 38 |
Less than 12 months, Fair Value | $ 143,721 | $ 42,482 | $ 51,327 |
Less than 12 months, Gross Unrealized Holding Losses | $ (1,184) | $ (222) | $ (252) |
12 months or more, Number | investment_security | 10 | 20 | 56 |
12 months or more, Fair Value | $ 17,950 | $ 25,352 | $ 70,551 |
12 months or more, Gross Unrealized Holding Losses | $ (634) | $ (565) | $ (1,227) |
Total, Number | investment_security | 151 | 62 | 94 |
Total, Fair Value | $ 161,671 | $ 67,834 | $ 121,878 |
Total, Gross Unrealized Holding Losses | $ (1,818) | $ (787) | $ (1,479) |
Municipal bonds | |||
Investment Securities Available-for-Sale, Total temporary impaired securities | |||
Less than 12 months, Number | investment_security | 109 | 35 | 27 |
Less than 12 months, Fair Value | $ 56,215 | $ 18,129 | $ 14,011 |
Less than 12 months, Gross Unrealized Holding Losses | $ (636) | $ (117) | $ (143) |
12 months or more, Number | investment_security | 7 | 16 | 44 |
12 months or more, Fair Value | $ 3,728 | $ 6,510 | $ 18,316 |
12 months or more, Gross Unrealized Holding Losses | $ (109) | $ (56) | $ (211) |
Total, Number | investment_security | 116 | 51 | 71 |
Total, Fair Value | $ 59,943 | $ 24,639 | $ 32,327 |
Total, Gross Unrealized Holding Losses | $ (745) | $ (173) | $ (354) |
Mortgage-backed securities | |||
Investment Securities Available-for-Sale, Total temporary impaired securities | |||
Less than 12 months, Number | investment_security | 32 | 7 | 11 |
Less than 12 months, Fair Value | $ 87,506 | $ 24,353 | $ 37,316 |
Less than 12 months, Gross Unrealized Holding Losses | $ (548) | $ (105) | $ (109) |
12 months or more, Number | investment_security | 3 | 4 | 12 |
12 months or more, Fair Value | $ 14,222 | $ 18,842 | $ 52,235 |
12 months or more, Gross Unrealized Holding Losses | $ (525) | $ (509) | $ (1,016) |
Total, Number | investment_security | 35 | 11 | 23 |
Total, Fair Value | $ 101,728 | $ 43,195 | $ 89,551 |
Total, Gross Unrealized Holding Losses | $ (1,073) | $ (614) | $ (1,125) |
Investment Securities By Contra
Investment Securities By Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Amortized Cost | |||
One Year or Less | $ 462 | ||
More than One Year to Five Years | 21,627 | ||
More than Five Years to Ten Years | 70,322 | ||
More than Ten Years | 188,745 | ||
Total | 281,156 | $ 200,758 | $ 235,154 |
Fair Value | |||
One Year or Less | 465 | ||
More than One Year to Five Years | 21,554 | ||
More than Five Years to Ten Years | 70,439 | ||
More than Ten Years | 187,976 | ||
Total | 280,434 | 201,638 | 235,116 |
Municipal bonds | |||
Amortized Cost | |||
One Year or Less | 462 | ||
More than One Year to Five Years | 21,627 | ||
More than Five Years to Ten Years | 45,981 | ||
More than Ten Years | 52,322 | ||
Total | 120,392 | 88,599 | 84,576 |
Fair Value | |||
One Year or Less | 465 | ||
More than One Year to Five Years | 21,554 | ||
More than Five Years to Ten Years | 46,111 | ||
More than Ten Years | 52,301 | ||
Total | 120,431 | 89,661 | 85,433 |
Mortgage-backed securities | |||
Amortized Cost | |||
One Year or Less | 0 | ||
More than One Year to Five Years | 0 | ||
More than Five Years to Ten Years | 24,341 | ||
More than Ten Years | 136,423 | ||
Total | 160,764 | 112,159 | 150,578 |
Fair Value | |||
One Year or Less | 0 | ||
More than One Year to Five Years | 0 | ||
More than Five Years to Ten Years | 24,328 | ||
More than Ten Years | 135,675 | ||
Total | $ 160,003 | $ 111,977 | $ 149,683 |
Loans Held for Investment Compo
Loans Held for Investment Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Loans Held for Investment | ||||
Total gross loans held for investment | $ 2,118,323 | $ 1,628,445 | $ 1,466,350 | |
Deferred loan origination costs and premiums, net | 237 | 177 | 418 | |
Allowance for loan losses | (15,100) | (12,200) | (9,733) | $ (8,200) |
Loans held for investment, net | 2,103,460 | 1,616,422 | 1,457,035 | |
Commercial and industrial | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 454,463 | 428,207 | 319,541 | |
Allowance for loan losses | (5,302) | (4,200) | (2,901) | (1,968) |
Commercial owner occupied | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 382,537 | 210,995 | 216,784 | |
Allowance for loan losses | (2,096) | (1,757) | (1,746) | (1,818) |
SBA | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 50,306 | 28,404 | 15,115 | |
Allowance for loan losses | (886) | (568) | (264) | (151) |
Warehouse facilities | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 198,113 | 113,798 | 114,032 | |
Allowance for loan losses | (875) | (546) | (456) | (392) |
Commercial non-owner occupied | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 402,786 | 359,213 | 360,288 | |
Allowance for loan losses | (1,963) | (2,007) | (1,991) | (1,658) |
Multi-family | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 400,237 | 262,965 | 251,512 | |
Allowance for loan losses | (1,532) | (1,060) | (937) | (817) |
One-to-four family | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 84,283 | 122,795 | 132,020 | |
Allowance for loan losses | (653) | (842) | (818) | (1,099) |
Construction | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 124,448 | 89,682 | 47,034 | |
Allowance for loan losses | (1,402) | (1,088) | (527) | (136) |
Land | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 16,339 | 9,088 | 6,271 | |
Allowance for loan losses | (362) | (108) | (67) | (127) |
Other loans | ||||
Loans Held for Investment | ||||
Total gross loans held for investment | 4,811 | 3,298 | 3,753 | |
Allowance for loan losses | $ (29) | $ (24) | $ (26) | $ (34) |
Loans Held for Investment Narra
Loans Held for Investment Narrative (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)areagrade | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | |
Loans Held for Investment | |||
Total purchase credit impaired | $ 5,776 | ||
Secured loans limit to one borrower | 88,800 | ||
Unsecured loans limit to one borrower | 53,300 | ||
Aggregate outstanding balance of loans to one borrower of secured credit | 46,700 | ||
Purchased credit impaired loans, nonaccrual status | 1,600 | ||
Nonaccruing loans | $ 2,471 | $ 1,290 | $ 1,345 |
Number of areas where the entity's credit quality is maintained and credit risk managed | area | 2 | ||
Number of Pass scale grades | grade | 6 | ||
Canyon National | |||
Loans Held for Investment | |||
Unaccreted mark-to-market discount | $ 1,100 | ||
Total purchase credit impaired | 1,572 | ||
San Diego Trust Bank | |||
Loans Held for Investment | |||
Unaccreted mark-to-market discount | 144 | ||
IDPK | |||
Loans Held for Investment | |||
Unaccreted mark-to-market discount | 6,300 | ||
Total purchase credit impaired | 4,204 | ||
First Association Bank | |||
Loans Held for Investment | |||
Mark-to-market premium | 24 | ||
Palm Desert National | |||
Loans Held for Investment | |||
Total purchase credit impaired | $ 0 |
Loans Held for Investment Purch
Loans Held for Investment Purchased Credit Impaired Loans (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Loans Held for Investment | |
Total purchase credit impaired | $ 5,776 |
Commercial and industrial | |
Loans Held for Investment | |
Total purchase credit impaired | 634 |
Commercial owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 2,870 |
Commercial non-owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 2,180 |
One-to-four family | |
Loans Held for Investment | |
Total purchase credit impaired | 92 |
Canyon National | |
Loans Held for Investment | |
Total purchase credit impaired | 1,572 |
Canyon National | Commercial and industrial | |
Loans Held for Investment | |
Total purchase credit impaired | 94 |
Canyon National | Commercial owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 535 |
Canyon National | Commercial non-owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 943 |
Canyon National | One-to-four family | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
Palm Desert National | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
Palm Desert National | Commercial and industrial | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
Palm Desert National | Commercial owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
Palm Desert National | Commercial non-owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
Palm Desert National | One-to-four family | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
IDPK | |
Loans Held for Investment | |
Total purchase credit impaired | 4,204 |
IDPK | Commercial and industrial | |
Loans Held for Investment | |
Total purchase credit impaired | 540 |
IDPK | Commercial owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 2,335 |
IDPK | Commercial non-owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 1,237 |
IDPK | One-to-four family | |
Loans Held for Investment | |
Total purchase credit impaired | $ 92 |
Loans Held for Investment Accre
Loans Held for Investment Accretable Yield Roll Forward (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Accretable yield on purchased credit impaired | |
Balance at the beginning of period | $ 1,403 |
Accretable yield at acquisition | 602 |
Accretion | (181) |
Disposals and other | (56) |
Change in accretable yield | 149 |
Balance at the end of period | 1,917 |
Canyon National | |
Accretable yield on purchased credit impaired | |
Balance at the beginning of period | 1,351 |
Accretable yield at acquisition | 0 |
Accretion | (106) |
Disposals and other | 0 |
Change in accretable yield | 0 |
Balance at the end of period | 1,245 |
Palm Desert National | |
Accretable yield on purchased credit impaired | |
Balance at the beginning of period | 52 |
Accretable yield at acquisition | 0 |
Accretion | 0 |
Disposals and other | (52) |
Change in accretable yield | 0 |
Balance at the end of period | 0 |
IDPK | |
Accretable yield on purchased credit impaired | |
Balance at the beginning of period | 0 |
Accretable yield at acquisition | 602 |
Accretion | (75) |
Disposals and other | (4) |
Change in accretable yield | 149 |
Balance at the end of period | $ 672 |
Loans Held for Investment Compa
Loans Held for Investment Company's Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Impaired Loans | |||
Contractual Unpaid Principal Balance | $ 3,876 | $ 1,836 | $ 1,913 |
Recorded Investment | 2,726 | 1,530 | 1,472 |
With Specific Allowance | 223 | 270 | 0 |
Without Specific Allowance | 2,503 | 1,260 | 1,472 |
Specific Allowance for Impaired Loans | 223 | 104 | 0 |
Average Recorded Investment | 2,846 | 2,183 | 1,878 |
Interest Income Recognized | 46 | 61 | 148 |
Commercial and industrial | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 2,494 | 59 | 0 |
Recorded Investment | 1,684 | 24 | 0 |
With Specific Allowance | 223 | 0 | 0 |
Without Specific Allowance | 1,461 | 24 | 0 |
Specific Allowance for Impaired Loans | 223 | 0 | 0 |
Average Recorded Investment | 1,797 | 18 | 11 |
Interest Income Recognized | 0 | 0 | 0 |
Commercial owner occupied | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 437 | 444 | 440 |
Recorded Investment | 370 | 417 | 388 |
With Specific Allowance | 0 | 0 | 0 |
Without Specific Allowance | 370 | 417 | 388 |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 373 | 627 | 514 |
Interest Income Recognized | 15 | 25 | 46 |
SBA | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
With Specific Allowance | 0 | 0 | |
Without Specific Allowance | 0 | 0 | |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 9 | 5 | |
Interest Income Recognized | 0 | 0 | |
Commercial non-owner occupied | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 693 | 708 | 1,217 |
Recorded Investment | 443 | 514 | 848 |
With Specific Allowance | 0 | 0 | 0 |
Without Specific Allowance | 443 | 514 | 848 |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 446 | 938 | 908 |
Interest Income Recognized | 21 | 21 | 85 |
One-to-four family | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 215 | 625 | 256 |
Recorded Investment | 206 | 575 | 236 |
With Specific Allowance | 0 | 270 | 0 |
Without Specific Allowance | 206 | 305 | 236 |
Specific Allowance for Impaired Loans | 0 | 104 | 0 |
Average Recorded Investment | 222 | 591 | 440 |
Interest Income Recognized | 10 | 15 | $ 17 |
Land | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 37 | ||
Recorded Investment | 23 | ||
With Specific Allowance | 0 | ||
Without Specific Allowance | 23 | ||
Specific Allowance for Impaired Loans | 0 | $ 0 | |
Average Recorded Investment | 8 | ||
Interest Income Recognized | $ 0 |
Loans Held for Investment Com42
Loans Held for Investment Components of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Receivables [Abstract] | |||
Nonaccruing loans | $ 2,471 | $ 1,290 | $ 1,345 |
Accruing loans | 255 | 182 | 185 |
Total impaired loans | $ 2,726 | $ 1,472 | $ 1,530 |
Loans Held for Investment Inter
Loans Held for Investment Internal Risk Grading System (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Credit Risk Grades | |||
Totals | $ 2,118,323 | $ 1,628,445 | $ 1,466,350 |
Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 454,463 | 428,207 | 319,541 |
Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 382,537 | 210,995 | 216,784 |
SBA | |||
Credit Risk Grades | |||
Totals | 50,306 | 28,404 | 15,115 |
Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 198,113 | 113,798 | 114,032 |
Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 402,786 | 359,213 | 360,288 |
Multi-family | |||
Credit Risk Grades | |||
Totals | 400,237 | 262,965 | 251,512 |
One-to-four family | |||
Credit Risk Grades | |||
Totals | 84,283 | 122,795 | 132,020 |
Construction | |||
Credit Risk Grades | |||
Totals | 124,448 | 89,682 | 47,034 |
Land | |||
Credit Risk Grades | |||
Totals | 16,339 | 9,088 | 6,271 |
Other loans | |||
Credit Risk Grades | |||
Totals | 4,811 | 3,298 | 3,753 |
Pass | |||
Credit Risk Grades | |||
Totals | 2,090,538 | 1,612,143 | 1,448,510 |
Pass | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 449,461 | 426,379 | 317,713 |
Pass | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 370,185 | 202,390 | 206,890 |
Pass | SBA | |||
Credit Risk Grades | |||
Totals | 50,306 | 28,132 | 15,115 |
Pass | Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 198,113 | 113,798 | 114,032 |
Pass | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 399,245 | 355,274 | 355,878 |
Pass | Multi-family | |||
Credit Risk Grades | |||
Totals | 395,565 | 261,956 | 250,494 |
Pass | One-to-four family | |||
Credit Risk Grades | |||
Totals | 83,671 | 122,146 | 131,330 |
Pass | Construction | |||
Credit Risk Grades | |||
Totals | 124,448 | 89,682 | 47,034 |
Pass | Land | |||
Credit Risk Grades | |||
Totals | 15,143 | 9,088 | 6,271 |
Pass | Other loans | |||
Credit Risk Grades | |||
Totals | 4,401 | 3,298 | 3,753 |
Special Mention | |||
Credit Risk Grades | |||
Totals | 1,914 | 773 | 899 |
Special Mention | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 267 | 0 | 0 |
Special Mention | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 678 | 0 | 393 |
Special Mention | SBA | |||
Credit Risk Grades | |||
Totals | 0 | 272 | 0 |
Special Mention | Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 0 | 0 | 0 |
Special Mention | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 265 | 0 | 0 |
Special Mention | Multi-family | |||
Credit Risk Grades | |||
Totals | 704 | 501 | 506 |
Special Mention | One-to-four family | |||
Credit Risk Grades | |||
Totals | 0 | 0 | 0 |
Special Mention | Construction | |||
Credit Risk Grades | |||
Totals | 0 | 0 | 0 |
Special Mention | Land | |||
Credit Risk Grades | |||
Totals | 0 | 0 | 0 |
Special Mention | Other loans | |||
Credit Risk Grades | |||
Totals | 0 | 0 | 0 |
Substandard | |||
Credit Risk Grades | |||
Totals | 25,871 | 15,529 | 16,941 |
Substandard | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 4,735 | 1,828 | 1,828 |
Substandard | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 11,674 | 8,605 | 9,501 |
Substandard | SBA | |||
Credit Risk Grades | |||
Totals | 0 | 0 | 0 |
Substandard | Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 0 | 0 | 0 |
Substandard | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 3,276 | 3,939 | 4,410 |
Substandard | Multi-family | |||
Credit Risk Grades | |||
Totals | 3,968 | 508 | 512 |
Substandard | One-to-four family | |||
Credit Risk Grades | |||
Totals | 612 | 649 | 690 |
Substandard | Construction | |||
Credit Risk Grades | |||
Totals | 0 | 0 | 0 |
Substandard | Land | |||
Credit Risk Grades | |||
Totals | 1,196 | 0 | 0 |
Substandard | Other loans | |||
Credit Risk Grades | |||
Totals | $ 410 | $ 0 | $ 0 |
Delinquencies (Details 6)
Delinquencies (Details 6) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Other information concerning the credit quality | |||
Total | $ 2,118,323 | $ 1,628,445 | $ 1,466,350 |
Non-Accruing | 4,382 | 1,444 | 1,941 |
Commercial and industrial | |||
Other information concerning the credit quality | |||
Total | 454,463 | 428,207 | 319,541 |
Non-Accruing | 2,147 | 0 | 24 |
Commercial owner occupied | |||
Other information concerning the credit quality | |||
Total | 382,537 | 210,995 | 216,784 |
Non-Accruing | 578 | 514 | 549 |
SBA | |||
Other information concerning the credit quality | |||
Total | 50,306 | 28,404 | 15,115 |
Non-Accruing | 0 | 0 | 0 |
Warehouse facilities | |||
Other information concerning the credit quality | |||
Total | 198,113 | 113,798 | 114,032 |
Non-Accruing | 0 | 0 | 0 |
Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Total | 402,786 | 359,213 | 360,288 |
Non-Accruing | 1,454 | 848 | 910 |
Multi-family | |||
Other information concerning the credit quality | |||
Total | 400,237 | 262,965 | 251,512 |
Non-Accruing | 0 | 0 | 0 |
One-to-four family | |||
Other information concerning the credit quality | |||
Total | 84,283 | 122,795 | 132,020 |
Non-Accruing | 88 | 82 | 458 |
Construction | |||
Other information concerning the credit quality | |||
Total | 124,448 | 89,682 | 47,034 |
Non-Accruing | 0 | 0 | 0 |
Land | |||
Other information concerning the credit quality | |||
Total | 16,339 | 9,088 | 6,271 |
Non-Accruing | 23 | 0 | 0 |
Other loans | |||
Other information concerning the credit quality | |||
Total | 4,811 | 3,298 | 3,753 |
Non-Accruing | 92 | 0 | 0 |
Current | |||
Other information concerning the credit quality | |||
Current | 2,115,638 | 1,628,347 | 1,465,048 |
Current | Commercial and industrial | |||
Other information concerning the credit quality | |||
Current | 452,383 | 428,183 | 319,418 |
Current | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Current | 382,537 | 210,995 | 216,367 |
Current | SBA | |||
Other information concerning the credit quality | |||
Current | 50,306 | 28,404 | 15,115 |
Current | Warehouse facilities | |||
Other information concerning the credit quality | |||
Current | 198,113 | 113,798 | 114,032 |
Current | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Current | 402,297 | 359,213 | 360,288 |
Current | Multi-family | |||
Other information concerning the credit quality | |||
Current | 400,237 | 262,965 | 251,512 |
Current | One-to-four family | |||
Other information concerning the credit quality | |||
Current | 84,218 | 122,722 | 131,258 |
Current | Construction | |||
Other information concerning the credit quality | |||
Current | 124,448 | 89,682 | 47,034 |
Current | Land | |||
Other information concerning the credit quality | |||
Current | 16,316 | 9,088 | 6,271 |
Current | Other loans | |||
Other information concerning the credit quality | |||
Current | 4,783 | 3,297 | 3,753 |
30-59 | |||
Other information concerning the credit quality | |||
Days Past Due | 943 | 20 | 236 |
30-59 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 452 | 0 | 0 |
30-59 | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
30-59 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
30-59 | Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
30-59 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 489 | 0 | 0 |
30-59 | Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
30-59 | One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 2 | 19 | 236 |
30-59 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
30-59 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
30-59 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 1 | 0 |
60-89 | |||
Other information concerning the credit quality | |||
Days Past Due | 28 | 24 | 994 |
60-89 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 24 | 99 |
60-89 | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 417 |
60-89 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
60-89 | Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
60-89 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
60-89 | Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
60-89 | One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 478 |
60-89 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
60-89 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
60-89 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | 28 | 0 | 0 |
90 | |||
Other information concerning the credit quality | |||
Days Past Due | 1,714 | 54 | 72 |
90 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 1,628 | 0 | 24 |
90 | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
90 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
90 | Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
90 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
90 | Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
90 | One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 63 | 54 | 48 |
90 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | 0 |
90 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 23 | 0 | 0 |
90 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses (Deta
Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | $ 12,200 | $ 12,200 | $ 8,200 | |||
Charge-offs | (789) | (501) | ||||
Recoveries | 26 | 55 | ||||
Provisions for (reduction in) loan losses | $ 1,833 | 1,830 | $ 1,030 | 3,663 | 1,979 | |
Balance, at the end of the period | 15,100 | 9,733 | 15,100 | 9,733 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 223 | 104 | 223 | 104 | $ 0 | |
Amount of allowance attributed to: General portfolio allocation | 14,877 | 9,629 | 14,877 | 9,629 | ||
Loans individually evaluated for impairment | 2,726 | 1,530 | $ 2,726 | $ 1,530 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 8.18048% | 6.80% | ||||
Loans collectively evaluated for impairment | 2,115,597 | 1,464,820 | $ 2,115,597 | $ 1,464,820 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.70% | 0.66% | ||||
Total gross loans | 2,118,323 | 1,466,350 | $ 2,118,323 | $ 1,466,350 | 1,628,445 | |
Total allowance to gross loans (as a percent) | 0.71% | 0.66% | ||||
Commercial and industrial | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 4,200 | $ 4,200 | $ 1,968 | |||
Charge-offs | (789) | (124) | ||||
Recoveries | 24 | 21 | ||||
Provisions for (reduction in) loan losses | 1,867 | 1,036 | ||||
Balance, at the end of the period | 5,302 | 2,901 | 5,302 | 2,901 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 223 | 0 | 223 | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 5,079 | 2,901 | 5,079 | 2,901 | ||
Loans individually evaluated for impairment | 1,684 | 24 | $ 1,684 | $ 24 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 13.24228% | 0.00% | ||||
Loans collectively evaluated for impairment | 452,779 | 319,517 | $ 452,779 | $ 319,517 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.12% | 0.91% | ||||
Total gross loans | 454,463 | 319,541 | $ 454,463 | $ 319,541 | 428,207 | |
Total allowance to gross loans (as a percent) | 1.17% | 0.91% | ||||
Commercial owner occupied | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 1,757 | $ 1,757 | $ 1,818 | |||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Provisions for (reduction in) loan losses | 339 | (72) | ||||
Balance, at the end of the period | 2,096 | 1,746 | 2,096 | 1,746 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 2,096 | 1,746 | 2,096 | 1,746 | ||
Loans individually evaluated for impairment | 370 | 417 | $ 370 | $ 417 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 382,167 | 216,367 | $ 382,167 | $ 216,367 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.55% | 0.81% | ||||
Total gross loans | 382,537 | 216,784 | $ 382,537 | $ 216,784 | 210,995 | |
Total allowance to gross loans (as a percent) | 0.55% | 0.81% | ||||
SBA | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 568 | $ 568 | $ 151 | |||
Charge-offs | 0 | 0 | ||||
Recoveries | 1 | 3 | ||||
Provisions for (reduction in) loan losses | 317 | 110 | ||||
Balance, at the end of the period | 886 | 264 | 886 | 264 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 886 | 264 | 886 | 264 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 50,306 | 15,115 | $ 50,306 | $ 15,115 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.76% | 1.75% | ||||
Total gross loans | 50,306 | 15,115 | $ 50,306 | $ 15,115 | 28,404 | |
Total allowance to gross loans (as a percent) | 1.76% | 1.75% | ||||
Warehouse facilities | ||||||
Allowance for Loan Losses | ||||||
Period considered for comparison of allowance for loan losses factor (in years) | 10 years | |||||
Period considered for comparison of entity's allowance for loan losses factor (in years) | 15 years | |||||
Trailing period considered for comparison of allowance for loan losses factor (in months) | 12 months | |||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 546 | $ 546 | $ 392 | |||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Provisions for (reduction in) loan losses | 329 | 64 | ||||
Balance, at the end of the period | 875 | 456 | 875 | 456 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 875 | 456 | 875 | 456 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 198,113 | 114,032 | $ 198,113 | $ 114,032 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.44% | 0.40% | ||||
Total gross loans | 198,113 | 114,032 | $ 198,113 | $ 114,032 | 113,798 | |
Total allowance to gross loans (as a percent) | 0.44% | 0.40% | ||||
Commercial non-owner occupied | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 2,007 | $ 2,007 | $ 1,658 | |||
Charge-offs | 0 | (365) | ||||
Recoveries | 0 | 0 | ||||
Provisions for (reduction in) loan losses | (44) | 698 | ||||
Balance, at the end of the period | 1,963 | 1,991 | 1,963 | 1,991 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 1,963 | 1,991 | 1,963 | 1,991 | ||
Loans individually evaluated for impairment | 443 | 514 | $ 443 | $ 514 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 402,343 | 359,774 | $ 402,343 | $ 359,774 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.49% | 0.55% | ||||
Total gross loans | 402,786 | 360,288 | $ 402,786 | $ 360,288 | 359,213 | |
Total allowance to gross loans (as a percent) | 0.49% | 0.55% | ||||
Multi-family | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 1,060 | $ 1,060 | $ 817 | |||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Provisions for (reduction in) loan losses | 472 | 120 | ||||
Balance, at the end of the period | 1,532 | 937 | 1,532 | 937 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 1,532 | 937 | 1,532 | 937 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 400,237 | 251,512 | $ 400,237 | $ 251,512 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.38% | 0.37% | ||||
Total gross loans | 400,237 | 251,512 | $ 400,237 | $ 251,512 | 262,965 | |
Total allowance to gross loans (as a percent) | 0.38% | 0.37% | ||||
One-to-four family | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 842 | $ 842 | $ 1,099 | |||
Charge-offs | 0 | (12) | ||||
Recoveries | 0 | 30 | ||||
Provisions for (reduction in) loan losses | (189) | (299) | ||||
Balance, at the end of the period | 653 | 818 | 653 | 818 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 104 | 0 | 104 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 653 | 714 | 653 | 714 | ||
Loans individually evaluated for impairment | 206 | 575 | $ 206 | $ 575 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 18.09% | ||||
Loans collectively evaluated for impairment | 84,077 | 131,445 | $ 84,077 | $ 131,445 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.78% | 0.54% | ||||
Total gross loans | 84,283 | 132,020 | $ 84,283 | $ 132,020 | 122,795 | |
Total allowance to gross loans (as a percent) | 0.77% | 0.62% | ||||
Construction | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 1,088 | $ 1,088 | $ 136 | |||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Provisions for (reduction in) loan losses | 314 | 391 | ||||
Balance, at the end of the period | 1,402 | 527 | 1,402 | 527 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 1,402 | 527 | 1,402 | 527 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 124,448 | 47,034 | $ 124,448 | $ 47,034 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.13% | 1.12% | ||||
Total gross loans | 124,448 | 47,034 | $ 124,448 | $ 47,034 | 89,682 | |
Total allowance to gross loans (as a percent) | 1.13% | 1.12% | ||||
Land | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 108 | $ 108 | $ 127 | |||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Provisions for (reduction in) loan losses | 254 | (60) | ||||
Balance, at the end of the period | 362 | 67 | 362 | 67 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 362 | 67 | 362 | 67 | ||
Loans individually evaluated for impairment | 23 | 0 | $ 23 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 16,316 | 6,271 | $ 16,316 | $ 6,271 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 2.22% | 1.07% | ||||
Total gross loans | 16,339 | 6,271 | $ 16,339 | $ 6,271 | 9,088 | |
Total allowance to gross loans (as a percent) | 2.22% | 1.07% | ||||
Other loans | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | $ 24 | $ 24 | $ 34 | |||
Charge-offs | 0 | 0 | ||||
Recoveries | 1 | 1 | ||||
Provisions for (reduction in) loan losses | 4 | (9) | ||||
Balance, at the end of the period | 29 | 26 | 29 | 26 | ||
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 29 | 26 | 29 | 26 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment (as a percent) | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 4,811 | 3,753 | $ 4,811 | $ 3,753 | ||
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.60% | 0.69% | ||||
Total gross loans | $ 4,811 | $ 3,753 | $ 4,811 | $ 3,753 | $ 3,298 | |
Total allowance to gross loans (as a percent) | 0.60% | 0.69% | ||||
Owner Occupied Commercial Real Estate Loans, Commercial and Industrial Loans and SBA Loans | ||||||
Allowance for Loan Losses | ||||||
Annualized trailing period two considered for determination of allowance for loan losses factor (in months) | 72 months | |||||
Annualized trailing period three considered for determination of allowance for loan losses factor (in months) | 36 months | |||||
Annualized trailing period four considered for determination of allowance for loan losses factor (in months) | 24 months | |||||
Annualized trailing period five considered for determination of allowance for loan losses factor (in months) | 12 months | |||||
Annualized trailing period six considered for determination of allowance for loan losses factor (in months) | 6 months | |||||
Period considered for comparison of allowance for loan losses factor (in years) | 10 years | |||||
Period considered for comparison of entity's allowance for loan losses factor (in years) | 15 years | |||||
Trailing period considered for comparison of allowance for loan losses factor (in months) | 12 months | |||||
Multi-Family and Non-Owner Occupied Commercial Real Estate Loans | ||||||
Allowance for Loan Losses | ||||||
Annualized trailing period one considered for determination of allowance for loan losses factor (in months) | 84 months | |||||
Annualized trailing period two considered for determination of allowance for loan losses factor (in months) | 72 months | |||||
Annualized trailing period three considered for determination of allowance for loan losses factor (in months) | 36 months | |||||
Annualized trailing period four considered for determination of allowance for loan losses factor (in months) | 24 months | |||||
Annualized trailing period five considered for determination of allowance for loan losses factor (in months) | 12 months | |||||
Annualized trailing period six considered for determination of allowance for loan losses factor (in months) | 6 months | |||||
Period considered for comparison of allowance for loan losses factor (in years) | 10 years | |||||
Period considered for comparison of entity's allowance for loan losses factor (in years) | 15 years | |||||
Trailing period considered for comparison of allowance for loan losses factor (in months) | 12 months | |||||
One-to-Four Family and Consumer Loans | ||||||
Allowance for Loan Losses | ||||||
Annualized trailing period two considered for determination of allowance for loan losses factor (in months) | 72 months | |||||
Annualized trailing period three considered for determination of allowance for loan losses factor (in months) | 36 months | |||||
Annualized trailing period four considered for determination of allowance for loan losses factor (in months) | 24 months | |||||
Annualized trailing period five considered for determination of allowance for loan losses factor (in months) | 12 months | |||||
Annualized trailing period six considered for determination of allowance for loan losses factor (in months) | 6 months | |||||
Period considered for comparison of allowance for loan losses factor (in years) | 10 years | |||||
Period considered for comparison of entity's allowance for loan losses factor (in years) | 15 years | |||||
Trailing period considered for comparison of allowance for loan losses factor (in months) | 12 months |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Aug. 31, 2014 | Mar. 31, 2004 | Jun. 30, 2015 | |
PPBI Trust I | |||
Subordinated Debentures | |||
Floating Rate Trust Preferred Securities issue amount | $ 10,000,000 | ||
Notes | |||
Subordinated Debentures | |||
Debt issued | $ 60,000,000 | ||
Contribution of net proceeds from the Private Placement to the Bank to support general corporate purposes | $ 50,000,000 | ||
Fixed interest rate (as a percent) | 5.75% | ||
Subordinated Debentures | |||
Subordinated Debentures | |||
Floating interest rate, base rate | three-month LIBOR | ||
Floating interest rate, basis points added to base rate (as a percent) | 2.75% | ||
Effective rate (as a percent) | 2.98% | ||
Subordinated Debentures | PPBI Trust I | |||
Subordinated Debentures | |||
Debt issued | $ 10,300,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |||||
Stock options excluded (in shares) | 780,659 | 814,369 | 503,676 | 800,806 | 593,387 |
Net Income | |||||
Net income | $ 7,825 | $ 1,789 | $ 4,643 | $ 9,613 | $ 7,275 |
Basic income available to common stockholders | 7,825 | 1,789 | 4,643 | 9,613 | 7,275 |
Diluted income available to common stockholders plus assumed conversions | $ 7,825 | $ 1,789 | $ 4,643 | $ 9,613 | $ 7,275 |
Shares | |||||
Basic income available to common stockholders (in shares) | 21,493,641 | 20,091,924 | 17,124,337 | 20,796,655 | 17,083,194 |
Effect of dilutive stock options and warrants (in shares) | 335,235 | 290,908 | 352,053 | 329,887 | 339,734 |
Diluted income available to common stockholders plus assumed conversions (in shares) | 21,828,876 | 20,382,832 | 17,476,390 | 21,126,542 | 17,422,928 |
Per Share Amount | |||||
Basic income available to common stockholders (in dollars per share) | $ 0.36 | $ 0.09 | $ 0.28 | $ 0.46 | $ 0.43 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $ 0.36 | $ 0.09 | $ 0.27 | $ 0.46 | $ 0.42 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments Fair Value Estimates (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||
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 | $ 280,434 | $ 235,116 | $ 201,638 |
Accrued interest receivable | 9,072 | 6,645 | 7,131 |
Other real estate owned | 711 | 752 | 1,037 |
Off-balance sheet commitments and standby letters of credit | |||
Notional Amount | 380,783 | 293,228 | 355,024 |
Cost to Cede or Assume | 38,078 | 29,323 | 35,502 |
Level 1 | |||
Assets: | |||
Cash and cash equivalents | 83,077 | 120,292 | 110,925 |
Securities available for sale | 0 | 0 | 0 |
FHLB, Federal Reserve Bank, and other stock, at cost | 22,843 | 18,494 | 17,067 |
Loans held for investment, net | 0 | 0 | 0 |
Accrued interest receivable | 9,072 | 6,645 | 7,131 |
Other real estate owned | 0 | 0 | 0 |
Liabilities: | |||
Deposit accounts | 1,575,404 | 1,102,419 | 1,216,847 |
FHLB advances | 118,208 | 210,000 | 70,025 |
Other borrowings | 0 | 0 | 0 |
Subordinated debentures | 0 | 0 | 0 |
Accrued interest payable | 212 | 177 | 209 |
Off-balance sheet commitments and standby letters of credit | |||
Notional Amount | 0 | ||
Cost to Cede or Assume | 0 | 0 | |
Level 2 | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Securities available for sale | 280,434 | 235,116 | 201,638 |
FHLB, Federal Reserve Bank, and other stock, at cost | 0 | 0 | 0 |
Loans held for investment, net | 0 | 0 | 0 |
Accrued interest receivable | 0 | 0 | 0 |
Other real estate owned | 0 | 0 | 0 |
Liabilities: | |||
Deposit accounts | 522,157 | 371,132 | 519,898 |
FHLB advances | 0 | 0 | 0 |
Other borrowings | 48,936 | 47,538 | 48,312 |
Subordinated debentures | 68,675 | 4,592 | 33,456 |
Accrued interest payable | 0 | 0 | 0 |
Off-balance sheet commitments and standby letters of credit | |||
Notional Amount | 35,502 | ||
Cost to Cede or Assume | 38,078 | 29,323 | |
Level 3 | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Securities available for sale | 0 | 0 | 0 |
FHLB, Federal Reserve Bank, and other stock, at cost | 0 | 0 | 0 |
Loans held for investment, net | 2,150,673 | 1,461,796 | 1,686,046 |
Accrued interest receivable | 0 | 0 | 0 |
Other real estate owned | 711 | 752 | 1,037 |
Liabilities: | |||
Deposit accounts | 0 | 0 | 0 |
FHLB advances | 0 | 0 | 0 |
Other borrowings | 0 | 0 | 0 |
Subordinated debentures | 0 | 0 | 0 |
Accrued interest payable | 0 | 0 | 0 |
Off-balance sheet commitments and standby letters of credit | |||
Notional Amount | 0 | ||
Cost to Cede or Assume | 0 | 0 | |
Recurring basis | |||
Assets: | |||
Securities available for sale | 280,434 | 235,116 | |
Recurring basis | Level 1 | |||
Assets: | |||
Securities available for sale | 0 | 0 | |
Recurring basis | Level 2 | |||
Assets: | |||
Securities available for sale | 280,434 | 235,116 | |
Recurring basis | Level 3 | |||
Assets: | |||
Securities available for sale | 0 | 0 | |
Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | 83,077 | 120,292 | 110,925 |
Securities available for sale | 280,434 | 235,116 | 201,638 |
FHLB, Federal Reserve Bank, and other stock, at cost | 22,843 | 18,494 | 17,067 |
Loans held for investment, net | 2,103,460 | 1,457,035 | 1,616,422 |
Accrued interest receivable | 9,072 | 6,645 | 7,131 |
Other real estate owned | 711 | 752 | 1,037 |
Liabilities: | |||
Deposit accounts | 2,095,983 | 1,445,581 | 1,630,826 |
FHLB advances | 118,000 | 210,000 | 70,000 |
Other borrowings | 49,389 | 45,287 | 46,643 |
Subordinated debentures | 70,310 | 10,310 | 70,310 |
Accrued interest payable | 212 | 177 | 209 |
Estimated Fair Value | |||
Assets: | |||
Cash and cash equivalents | 83,077 | 120,292 | 110,925 |
Securities available for sale | 280,434 | 235,116 | 201,638 |
FHLB, Federal Reserve Bank, and other stock, at cost | 22,843 | 18,494 | 17,067 |
Loans held for investment, net | 2,150,673 | 1,461,796 | 1,686,046 |
Accrued interest receivable | 9,072 | 6,645 | 7,131 |
Other real estate owned | 711 | 752 | 1,037 |
Liabilities: | |||
Deposit accounts | 2,097,561 | 1,473,551 | 1,736,745 |
FHLB advances | 118,208 | 210,000 | 70,025 |
Other borrowings | 48,936 | 47,538 | 48,312 |
Subordinated debentures | 68,675 | 4,592 | 33,456 |
Accrued interest payable | $ 212 | $ 177 | $ 209 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments Hierarchy Table - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Investment securities available for sale: | |||
Total securities available for sale | $ 280,434 | $ 201,638 | $ 235,116 |
Level 1 | |||
Investment securities available for sale: | |||
Total securities available for sale | 0 | 0 | 0 |
Level 2 | |||
Investment securities available for sale: | |||
Total securities available for sale | 280,434 | 201,638 | 235,116 |
Level 3 | |||
Investment securities available for sale: | |||
Total securities available for sale | 0 | $ 0 | 0 |
Recurring basis | |||
Investment securities available for sale: | |||
Total securities available for sale | 280,434 | 235,116 | |
Recurring basis | Municipal bonds | |||
Investment securities available for sale: | |||
Total securities available for sale | 120,431 | 85,433 | |
Recurring basis | Mortgage-backed securities | |||
Investment securities available for sale: | |||
Total securities available for sale | 160,003 | 149,683 | |
Recurring basis | Level 1 | |||
Investment securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Recurring basis | Level 1 | Municipal bonds | |||
Investment securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Recurring basis | Level 1 | Mortgage-backed securities | |||
Investment securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Recurring basis | Level 2 | |||
Investment securities available for sale: | |||
Total securities available for sale | 280,434 | 235,116 | |
Recurring basis | Level 2 | Municipal bonds | |||
Investment securities available for sale: | |||
Total securities available for sale | 120,431 | 85,433 | |
Recurring basis | Level 2 | Mortgage-backed securities | |||
Investment securities available for sale: | |||
Total securities available for sale | 160,003 | 149,683 | |
Recurring basis | Level 3 | |||
Investment securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Recurring basis | Level 3 | Municipal bonds | |||
Investment securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Recurring basis | Level 3 | Mortgage-backed securities | |||
Investment securities available for sale: | |||
Total securities available for sale | $ 0 | $ 0 |
Hierarchy Table - Nonrecurring
Hierarchy Table - Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Fair Value Disclosures | |||
Other real estate owned | $ 711 | $ 1,037 | $ 752 |
Level 1 | |||
Fair Value Disclosures | |||
Other real estate owned | 0 | 0 | 0 |
Level 2 | |||
Fair Value Disclosures | |||
Other real estate owned | 0 | 0 | 0 |
Level 3 | |||
Fair Value Disclosures | |||
Other real estate owned | 711 | $ 1,037 | 752 |
Non-recurring basis | |||
Fair Value Disclosures | |||
Collateral dependent impaired loans | 2,548 | 1,003 | |
Other real estate owned | 711 | 752 | |
Total assets | 3,259 | 1,755 | |
Non-recurring basis | Level 1 | |||
Fair Value Disclosures | |||
Collateral dependent impaired loans | 0 | 0 | |
Other real estate owned | 0 | 0 | |
Total assets | 0 | 0 | |
Non-recurring basis | Level 2 | |||
Fair Value Disclosures | |||
Collateral dependent impaired loans | 0 | 0 | |
Other real estate owned | 0 | 0 | |
Total assets | 0 | 0 | |
Non-recurring basis | Level 3 | |||
Fair Value Disclosures | |||
Collateral dependent impaired loans | 2,548 | 1,003 | |
Other real estate owned | 711 | 752 | |
Total assets | $ 3,259 | $ 1,755 |
Fair Value of Financial Instr51
Fair Value of Financial Instruments Quantitative Data (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Other real estate owned | $ 711 | $ 752 | $ 1,037 |
Level 3 | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Other real estate owned | 711 | 752 | $ 1,037 |
Non-recurring basis | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | 2,548 | 1,003 | |
Other real estate owned | 711 | 752 | |
Non-recurring basis | Level 3 | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | 2,548 | 1,003 | |
Other real estate owned | 711 | 752 | |
Non-recurring basis | Level 3 | Commercial and industrial | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | $ 1,684 | $ 24 | |
Non-recurring basis | Level 3 | Commercial and industrial | Minimum | |||
Unobservable Inputs | |||
Unobservable Inputs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Level 3 | Commercial and industrial | Maximum | |||
Unobservable Inputs | |||
Unobservable Inputs (as a percent) | 10.00% | 10.00% | |
Non-recurring basis | Level 3 | Commercial and industrial | Collateral analysis | |||
Unobservable Inputs | |||
Rate (as a percent) | 6.70% | ||
Maturity (years) | 8 years | ||
Non-recurring basis | Level 3 | Commercial and industrial | Collateral analysis | Minimum | |||
Unobservable Inputs | |||
Rate (as a percent) | 6.00% | ||
Maturity (years) | 3 years | ||
Non-recurring basis | Level 3 | Commercial owner occupied | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | $ 370 | $ 417 | |
Unobservable Inputs | |||
Rate (as a percent) | 11.75% | ||
Maturity (years) | 8 years | ||
Non-recurring basis | Level 3 | Commercial owner occupied | Minimum | |||
Unobservable Inputs | |||
Unobservable Inputs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Level 3 | Commercial owner occupied | Maximum | |||
Unobservable Inputs | |||
Unobservable Inputs (as a percent) | 10.00% | 10.00% | |
Non-recurring basis | Level 3 | Commercial owner occupied | Collateral analysis | |||
Unobservable Inputs | |||
Rate (as a percent) | 6.75% | ||
Maturity (years) | 7 years | ||
Non-recurring basis | Level 3 | Commercial non-owner occupied | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | $ 443 | $ 514 | |
Unobservable Inputs | |||
Rate (as a percent) | 7.00% | ||
Maturity (years) | 13 years | ||
Non-recurring basis | Level 3 | Commercial non-owner occupied | Minimum | |||
Unobservable Inputs | |||
Unobservable Inputs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Level 3 | Commercial non-owner occupied | Maximum | |||
Unobservable Inputs | |||
Unobservable Inputs (as a percent) | 15.00% | 15.00% | |
Non-recurring basis | Level 3 | Commercial non-owner occupied | Collateral analysis | |||
Unobservable Inputs | |||
Rate (as a percent) | 7.00% | ||
Maturity (years) | 12 years | ||
Non-recurring basis | Level 3 | Land | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | $ 23 | ||
Other real estate owned | $ 711 | $ 752 | |
Non-recurring basis | Level 3 | Land | Minimum | |||
Unobservable Inputs | |||
Unobservable Inputs (as a percent) | 0.00% | ||
Non-recurring basis | Level 3 | Land | Maximum | |||
Unobservable Inputs | |||
Unobservable Inputs (as a percent) | 10.00% | ||
Non-recurring basis | Level 3 | Land | Collateral analysis | |||
Unobservable Inputs | |||
Rate (as a percent) | 13.00% | ||
Maturity (years) | 15 years | ||
Non-recurring basis | Level 3 | One-to-four family | |||
Quantitative information about level 3 of fair value measurements for financial instruments | |||
Collateral dependent impaired loans | $ 28 | $ 48 | |
Other real estate owned | $ 0 | ||
Non-recurring basis | Level 3 | One-to-four family | Minimum | |||
Unobservable Inputs | |||
Rate (as a percent) | 8.00% | 2.26% | |
Maturity (years) | 5 years | 2 years | |
Unobservable Inputs (as a percent) | 0.00% | 0.00% | |
Non-recurring basis | Level 3 | One-to-four family | Maximum | |||
Unobservable Inputs | |||
Rate (as a percent) | 15.00% | 15.00% | |
Maturity (years) | 16 years | 22 years | |
Unobservable Inputs (as a percent) | 10.00% | 10.00% |