Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
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, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,656,533 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 15,444 | $ 14,935 |
Interest bearing deposits with financial institutions | 169,855 | 63,482 |
Cash and cash equivalents | 185,299 | 78,417 |
Interest bearing time deposits with financial institutions | 3,944 | 1,972 |
Investments held to maturity, at amortized cost (fair value of $9,390 and $9,572 as of June 30, 2016 and December 31, 2015, respectively) | 9,292 | 9,642 |
Investment securities available for sale, at fair value | 245,471 | 280,273 |
FHLB, FRB and other stock, at cost | 26,984 | 22,292 |
Loans held for sale, at lower of cost or market | 10,116 | 8,565 |
Loans held for investment | 2,920,619 | 2,254,315 |
Allowance for loan losses | (18,955) | (17,317) |
Loans held for investment, net | 2,901,664 | 2,236,998 |
Accrued interest receivable | 12,143 | 9,315 |
Other real estate owned | 711 | 1,161 |
Premises and equipment | 11,014 | 9,248 |
Deferred income taxes, net | 16,552 | 11,511 |
Bank owned life insurance | 39,824 | 39,245 |
Intangible assets | 10,500 | 7,170 |
Goodwill | 101,939 | 50,832 |
Other assets | 23,200 | 24,005 |
Total Assets | 3,598,653 | 2,790,646 |
Deposit accounts: | ||
Noninterest bearing checking | 1,043,361 | 711,771 |
Interest-bearing: | ||
Checking | 168,669 | 134,999 |
Money market/savings | 1,099,445 | 827,378 |
Retail certificates of deposit | 420,673 | 365,911 |
Wholesale/brokered certificates of deposit | 198,853 | 155,064 |
Total interest-bearing | 1,887,640 | 1,483,352 |
Total deposits | 2,931,001 | 2,195,123 |
FHLB advances and other borrowings | 120,252 | 196,125 |
Subordinated debentures | 70,310 | 70,310 |
Accrued expenses and other liabilities | 36,460 | 30,108 |
Total Liabilities | 3,158,023 | 2,491,666 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $.01 par value; 1,000,000 authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 100,000,000 shares authorized; 27,650,533 shares at June 30, 2016 and 21,510,746 shares at December 31, 2015 | 273 | 215 |
Additional paid-in capital | 342,388 | 221,487 |
Retained earnings | 95,869 | 76,946 |
Accumulated other comprehensive income, net of tax | 2,100 | 332 |
Total Stockholder's Equity | 440,630 | 298,980 |
Total Liabilities and Stockholder's Equity | $ 3,598,653 | $ 2,790,646 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Estimated Fair Value | $ 9,390 | $ 9,572 |
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 50,000,000 |
Common stock, shares issued | 27,650,533 | 21,570,746 |
Common stock, shares outstanding | 27,650,533 | 21,570,746 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
INTEREST INCOME | |||||
Loans | $ 39,035 | $ 35,407 | $ 27,912 | $ 74,442 | $ 52,982 |
Investment securities and other interest-earning assets | 1,839 | 2,098 | 2,158 | 3,937 | 3,715 |
Total interest income | 40,874 | 37,505 | 30,070 | 78,379 | 56,697 |
INTEREST EXPENSE | |||||
Deposits | 2,010 | 2,069 | 1,589 | 4,079 | 3,195 |
FHLB advances and other borrowings | 324 | 325 | 407 | 649 | 782 |
Subordinated debentures | 979 | 910 | 982 | 1,889 | 1,953 |
Total interest expense | 3,313 | 3,304 | 2,978 | 6,617 | 5,930 |
Net Interest Provision Before Provision for Loan Losses | 37,561 | 34,201 | 27,092 | 71,762 | 50,767 |
Provision for loan losses | 1,589 | 1,120 | 1,833 | 2,709 | 3,663 |
Net Interest Income After Provision For Loan Losses | 35,972 | 33,081 | 25,259 | 69,053 | 47,104 |
NONINTEREST INCOME | |||||
Loan servicing fees | 302 | 327 | 393 | 629 | 737 |
Deposit fees | 817 | 842 | 634 | 1,659 | 1,216 |
Net gain from sales of loans | 2,124 | 1,906 | 2,721 | 4,030 | 2,721 |
Net gain from sales of investment securities | 532 | 753 | 139 | 1,285 | 255 |
Other-than-temporary-impairment loss on investment securities | 0 | (207) | 0 | (207) | 0 |
Other income | 675 | 1,241 | 494 | 1,916 | 921 |
Total noninterest income | 4,450 | 4,862 | 4,381 | 9,312 | 5,850 |
NONINTEREST EXPENSE | |||||
Compensation and benefits | 13,095 | 11,770 | 9,171 | 24,865 | 18,416 |
Premises and occupancy | 2,597 | 2,391 | 2,082 | 4,988 | 3,911 |
Data processing and communications | 887 | 911 | 716 | 1,798 | 1,418 |
Other real estate owned operations, net | (15) | 8 | 56 | (7) | 104 |
FDIC insurance premiums | 401 | 382 | 363 | 783 | 677 |
Legal, audit and professional expense | 446 | 865 | 661 | 1,311 | 1,182 |
Marketing expense | 775 | 630 | 615 | 1,405 | 1,218 |
Office and postage expense | 573 | 481 | 505 | 1,054 | 1,004 |
Loan expense | 540 | 403 | 263 | 943 | 456 |
Deposit expense | 1,196 | 1,019 | 982 | 2,215 | 1,787 |
Merger-related expense | 497 | 3,119 | 0 | 3,616 | 3,992 |
CDI amortization | 645 | 344 | 344 | 989 | 658 |
Other expense | 2,058 | 1,324 | 1,456 | 3,382 | 2,860 |
Total noninterest expense | 23,695 | 23,647 | 17,214 | 47,342 | 37,683 |
Net Income Before Income Taxes | 16,727 | 14,296 | 12,426 | 31,023 | 15,271 |
Income tax | 6,358 | 5,742 | 4,601 | 12,100 | 5,658 |
Net Income | $ 10,369 | $ 8,554 | $ 7,825 | $ 18,923 | $ 9,613 |
EARNINGS PER SHARE | |||||
Basic (in dollars per share) | $ 0.38 | $ 0.33 | $ 0.36 | $ 0.72 | $ 0.46 |
Diluted (in dollars per share) | $ 0.37 | $ 0.33 | $ 0.36 | $ 0.70 | $ 0.46 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||
Basic (in shares) | 27,378,930 | 25,555,654 | 21,493,641 | 26,467,292 | 20,796,655 |
Diluted (in shares) | 27,845,490 | 25,952,184 | 21,828,876 | 26,901,627 | 21,126,542 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 10,369 | $ 8,554 | $ 7,825 | $ 18,923 | $ 9,613 | |
Other comprehensive income, net of tax: | ||||||
Unrealized holding gains (losses) on securities arising during the period, net of income taxes (benefits) | [1] | 947 | 1,565 | (1,628) | 2,512 | (793) |
Reclassification adjustment for net gain on sale of securities included in net income, net of income taxes | [2] | (308) | (436) | (82) | (744) | (150) |
Net unrealized gain on securities, net of income taxes | 639 | 1,129 | (1,710) | 1,768 | (943) | |
Comprehensive income | $ 11,008 | $ 9,683 | $ 6,115 | $ 20,691 | $ 8,670 | |
[1] | Income tax (benefit) on the unrealized gains (losses) on securities was $736,000 for the three months ended June 30, 2016, $1.1 million for the three months ended March 31, 2016, $(1.1) million for the three months ended June 30, 2015, $1.8 million for the six months ended June 30, 2016 and $(556,000) for the six months ended June 30, 2015. | |||||
[2] | Income tax (benefit) on the reclassification adjustment for net (gains) losses on sale of securities included in net income was $224,000 for the three months ended June 30, 2016, $317,000 for the three months ended March 31, 2016, $57,000 for the three months ended June 30, 2015, $541,000 for the six months ended June 30, 2016 and $105,000 for the six months ended June 30, 2015. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||
Tax effect on unrealized holding gains (losses) on securities arising during the period | $ 736 | $ 1,100 | $ (1,100) | $ 1,800 | $ (556) |
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | $ 224 | $ 317 | $ 57 | $ 541 | $ 105 |
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, 2014 | $ 199,592 | $ 169 | $ 147,474 | $ 51,431 | $ 518 |
Balance (in shares) at Dec. 31, 2014 | 16,903,884 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 9,613 | 9,613 | |||
Other comprehensive income | (943) | (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 | $ 0 | 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 | ||||
Balance at Dec. 31, 2015 | $ 298,980 | $ 215 | 221,487 | 76,946 | 332 |
Balance (in shares) at Dec. 31, 2015 | 21,570,746 | 21,570,746 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 18,923 | 18,923 | |||
Other comprehensive income | 1,768 | 1,768 | |||
Share-based compensation expense | 1,048 | 1,048 | |||
Issuance of restricted stock (in shares) | 218,236 | ||||
Common stock issued | 119,383 | $ 58 | 119,325 | ||
Common stock issued (in shares) | 5,815,051 | ||||
Exercise of stock options | 528 | 528 | |||
Exercise of stock options (in shares) | 46,500 | ||||
Balance at Jun. 30, 2016 | $ 440,630 | $ 273 | $ 342,388 | $ 95,869 | $ 2,100 |
Balance (in shares) at Jun. 30, 2016 | 27,650,533 | 27,650,533 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 18,923 | $ 9,613 |
Adjustments to net income: | ||
Depreciation and amortization expense | 1,348 | 1,244 |
Provision for loan losses | 2,709 | 3,663 |
Share-based compensation expense | 1,048 | 435 |
Loss on sale of or write down of other real estate owned | (18) | 92 |
Net amortization on securities held for sale, net | 7,080 | 1,763 |
Net accretion of discounts/premiums for loans acquired and deferred loan fees/costs | (6,713) | (967) |
Gain on sale of investment securities available for sale | (1,285) | (255) |
Originations of loans held for sale | (44,463) | 0 |
Proceeds from the sales of and principal payments from loans held for sale | 47,487 | 0 |
Gain on sale of loans | (4,030) | (2,721) |
Deferred income tax benefit | (977) | 1,706 |
Change in accrued expenses and other liabilities, net | (1,700) | (1,840) |
Income from bank owned life insurance, net | (579) | (643) |
Amortization of core deposit intangible | 989 | 0 |
Change in accrued interest receivable and other assets, net | 5,904 | (5,159) |
Net cash provided by operating activities | 25,723 | 6,931 |
Cash flows from investing activities: | ||
Increase in loans, net | (204,505) | (154,121) |
Change in other real estate owned from sales and writedowns | 468 | 234 |
Principal payments on securities available for sale | 18,234 | 15,907 |
Purchase of securities available for sale | (5,135) | (60,132) |
Proceeds from sale or maturity of securities available for sale | 211,303 | 16,070 |
Proceeds from the sale of premises and equipment | 6,987 | (842) |
Purchases of premises and equipment | (5,745) | 0 |
Change in FHLB, FRB, and other stock, at cost | (4,692) | (3,407) |
Cash acquired in acquisitions | 40,303 | 2,961 |
Net cash provided by (used in) investing activities | 57,218 | (183,330) |
Cash flows from financing activities: | ||
Net increase in deposit accounts | 99,286 | 129,139 |
Change in FHLB advances and other borrowings, net | (75,873) | 17,446 |
Proceeds from issuance of common stock, net of issuance cost | 0 | 1,323 |
Proceeds from exercise of stock options and warrants | 528 | 48 |
Warrants exercised | 0 | 688 |
Repurchase of common stock | 0 | (93) |
Net cash provided by financing activities | 23,941 | 148,551 |
Net increase (decrease) in cash and cash equivalents | 106,882 | (27,848) |
Cash and cash equivalents, beginning of year | 78,417 | 110,925 |
Cash and cash equivalents, end of year | 185,299 | 83,077 |
Supplemental cash flow disclosures: | ||
Interest paid | 6,586 | 5,979 |
Income taxes paid | 12,958 | 7,450 |
Assets acquired (liabilities assumed and capital created) in acquisitions (See Note 4): | ||
Investment securities | 190,254 | 53,752 |
FHLB and Other Stock | 3,671 | 2,369 |
Loans | 456,158 | 332,893 |
Core deposit intangible | 4,319 | 2,903 |
Deferred income tax | 7,069 | 4,794 |
Bank owned life insurance | 0 | 11,276 |
Goodwill | 51,106 | 27,882 |
Fixed assets | 4,502 | 2,134 |
Other assets | 5,610 | 2,402 |
Deposits | (636,591) | (336,018) |
Other borrowings | 0 | (33,300) |
Other liabilities | (8,843) | (1,796) |
Common stock and additional paid-in capital | $ (119,383) | $ (70,929) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and December 31, 2015 , the results of its operations and comprehensive income for the three months ended June 30, 2016 , March 31, 2016 and June 30, 2015 and the six months ended June 30, 2016 and June 30, 2015 and the changes in stockholders’ equity and cash flows for the six months ended June 30, 2016 and 2015 . Operating results or comprehensive income for the six months ended June 30, 2016 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, 2016 . 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, 2015 (the “ 2015 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, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Standards Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit lossses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates . For public business entities, the amendment is effective for annual periods beginning after December 15, 2019 and interim period within those annual periods. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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 a straight-line amortization 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, 2016 | |
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 loans, core deposit intangible, securities and deposits with the assistance of third party valuations. 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. Security California Bancorp Acquisition On January 31, 2016, the Company completed its acquisition of Security California Bancorp (“SCAF”) whereby we acquired $715 million in total assets, $456 million in loans and $637 million in total deposits. Under the terms of the merger agreement, each share of SCAF common stock was converted into the right to receive 0.9629 shares of the Corporation’s common stock. The value of the total deal consideration was $120 million , which includes $788,000 of aggregate cash consideration to the holders of SCAF stock options and the issuance of 5,815,051 shares of the Corporation’s common stock, valued at $119.4 million based on a closing stock price of $20.53 per share on January 29, 2016. SCAF was the holding company of Security Bank of California, a Riverside, California, based state-chartered bank with six branches located in Riverside County, San Bernardino County and Orange County. Goodwill in the amount of $51.1 million was recognized in the SCAF 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 SCAF as of January 31, 2016 and the provisional fair value adjustments and amounts recorded by the Company in 2016 under the acquisition method of accounting: SCAF Book Value Fair Value Adjustments Fair Value ASSETS ACQUIRED (in thousands) Cash and cash equivalents $ 40,947 $ — $ 40,947 Interest bearing deposits with financial institutions 1,972 — 1,972 Investment securities 191,881 (1,627 ) 190,254 Loans, gross 467,197 (11,039 ) 456,158 Allowance for loan losses (7,399 ) 7,399 — Fixed assets 5,335 (833 ) 4,502 Core deposit intangible 493 3,826 4,319 Deferred tax assets 5,618 1,451 7,069 Other assets 10,589 (1,308 ) 9,281 Total assets acquired $ 716,633 $ (2,131 ) $ 714,502 LIABILITIES ASSUMED Deposits $ 636,450 $ 141 $ 636,591 Other Liabilities 9,063 (220 ) 8,843 Total liabilities assumed 645,513 (79 ) 645,434 Excess of assets acquired over liabilities assumed $ 71,120 $ (2,052 ) 69,068 Consideration paid 120,174 Goodwill recognized $ 51,106 The fair values are preliminary estimates and are subject to adjustment for up to one year after the merger date or when additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier. In the second quarter of 2016, the Company made a $146,000 adjustment to fixed assets and goodwill. 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 Corporation’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 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 IDPK as of January 26, 2015 and the 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 (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 5,266 (472 ) 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 $ 424,392 $ (1,383 ) $ 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 $ 53,491 $ (1,596 ) 51,895 Consideration paid 79,777 Goodwill recognized $ 27,882 For loans acquired from SCAF 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 SCAF IDPK (in thousands) Contractual amounts due $ 539,806 $ 453,987 Cash flows not expected to be collected 2,765 3,795 Expected cash flows 537,041 450,192 Interest component of expected cash flows 80,883 117,299 Fair value of acquired loans $ 456,158 $ 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 SCAF or IDPK. The operating results of the Company for the six months ending June 30, 2016 include the operating results of SCAF and IDPK since their respective acquisition dates. The operating results of the Company for the six months ending June 30, 2015 include the operating results of IDPK since its acquisition date. The following table presents the net interest and other income, net income and earnings per share as if the acquisitions of SCAF and IDPK were effective as of January 1, 2016 and 2015. 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, 2016 2015 (dollars in thousands) Net interest and other income $ 80,512 $ 67,729 Net income 16,952 11,137 Basic earnings per share 0.62 0.41 Diluted earnings per share 0.61 0.40 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities were as follows: June 30, 2016 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Available-for-sale: Municipal bonds $ 115,755 $ 3,044 $ — $ 118,799 Collateralized mortgage obligation 22,570 274 — 22,844 Mortgage-backed securities 103,512 604 (288 ) 103,828 Total available-for-sale 241,837 3,922 (288 ) 245,471 Held-to-maturity: Mortgage-backed securities 8,076 98 — 8,174 Other 1,216 — — 1,216 Total held-to-maturity 9,292 98 — 9,390 Total securities $ 251,129 $ 4,020 $ (288 ) $ 254,861 December 31, 2015 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Available-for-sale: Municipal bonds $ 128,546 $ 1,796 $ (97 ) $ 130,245 Collateralized mortgage obligation 24,722 4 (183 ) 24,543 Mortgage-backed securities 126,443 153 (1,111 ) 125,485 Total available-for-sale 279,711 1,953 (1,391 ) $ 280,273 Held-to-maturity: Mortgage-backed securities 8,400 — (70 ) 8,330 Other 1,242 — — 1,242 Total held-to-maturity 9,642 — (70 ) 9,572 Total securities $ 289,353 $ 1,953 $ (1,461 ) $ 289,845 At June 30, 2016 , mortgage-backed securities (“MBS”) with an estimated par value of $59.6 million and a fair value of $62.1 million were pledged as collateral for the Bank’s three reverse repurchase agreements which totaled $28.5 million and homeowner’s association (“HOA”) reverse repurchase agreements which totaled $16.8 million . The Company reviews individual securities classified as available-for-sale to determine whether a decline in fair value below the amortized cost basis is temporary because (i) those declines were due to interest rate changes and not to a deterioration in the creditworthiness of the issuers of those investment securities, and (ii) we have the ability to hold those securities until there is a recovery in their values or until their maturity. If it is probable that the Company will be unable to collect all amounts due according to contractual terms of the debt security not impaired at acquisition, an other-than-temporary ("OTTI") shall be considered to have occurred. If an OTTI occurs, the cost basis of the security will be written down to its fair value as the new cost basis and the write down accounted for as a realized loss. The Company did not realize any OTTI losses for the three months ended June 30, 2016 or June 30, 2015 . The Company realized OTTI losses of $207,000 for the three months ended March 31, 2016. The OTTI loss relates to a CRA investment purchased in June of 2014 with a par value of $50 , and a book value of $500,000 . In March of 2016 the shareholders of the investment voted to approve a sale of the institution at a per share acquisition price less the Bank's book value, with an expected closing by mid-2016. As a result, the Bank's current holdings were written down and the loss recognized. During the six months ended June 30, 2016 , the Company realized OTTI losses of $207,000 . The Company did not realize any OTTI losses for the six months ended June 30, 2015 . During the three months ended June 30, 2016 , March 31, 2016 and June 30, 2015 , the Company recognized gross gains on sales of available-for-sale securities in the amount of $532,000 , $762,000 and $146,000 , respectively. During the three months ended June 30, 2016 , the Company did not recognize any gross losses on the sales of available-for sale securities. During the three months ended March 31, 2016 and June 30, 2015 , the Company recognized gross losses on sales of available-for-sale securities in the amount of $9,000 and $7,000 , respectively. The Company had net proceeds from the sale of available-for-sale securities of $21.1 million and $186 million and $7.3 million during the three months ended June 30, 2016 , March 31, 2016 and June 30, 2015 , respectively. During the six months ended June 30, 2016 and June 30, 2015 , the Company recognized gross gains on sales of available-for-sale securities in the amount of $1.3 million and $264,000 . During the six months ended June 30, 2016 and June 30, 2015 , the Company recognized gross losses on sales of available-for-sale securities in the amount of $9,000 and $9,000 . The Company had net proceeds from the sale of available-for-sale securities of $207 million and $16.1 million during the six months ended June 30, 2016 and June 30, 2015 , respectively. 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, 2016 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) Available-for-sale: Mortgage-backed securities 9 16,209 (77 ) 8 21,940 (211 ) 17 38,149 (288 ) Total securities 9 $ 16,209 $ (77 ) 8 $ 21,940 $ (211 ) 17 $ 38,149 $ (288 ) December 31, 2015 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (dollars in thousands) Available-for-sale: Municipal bonds 32 $ 15,516 $ (61 ) 6 $ 3,349 $ (36 ) 38 $ 18,865 $ (97 ) Collateralized mortgage obligation 5 22,771 (183 ) — — — 5 22,771 (183 ) Mortgage-backed securities 34 83,488 (679 ) 3 12,935 (432 ) 37 96,423 (1,111 ) Total securities available-for-sale 71 121,775 (923 ) 9 16,284 (468 ) 80 138,059 (1,391 ) Held-to-maturity: Mortgage-backed securities 1 8,330 (70 ) — — — 1 8,330 (70 ) Total securities held-to-maturity 1 8,330 (70 ) — — — 1 8,330 (70 ) Total securities 72 $ 130,105 $ (993 ) 9 $ 16,284 $ (468 ) 81 $ 146,389 $ (1,461 ) The amortized cost and estimated fair value of investment securities at June 30, 2016 , 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 (in thousands) Available-for-sale: Municipal bonds $ 1,415 $ 1,416 $ 28,380 $ 28,806 $ 37,618 $ 38,956 $ 48,342 $ 49,621 $ 115,755 $ 118,799 Collateralized mortgage obligation — — — — — — 22,570 22,844 22,570 22,844 Mortgage-backed securities — — — — 20,961 21,143 82,551 82,685 103,512 103,828 Total securities available-for-sale 1,415 1,416 28,380 28,806 58,579 60,099 153,463 155,150 241,837 245,471 Held-to-maturity: Mortgage-backed securities — — — — — — 8,076 8,174 8,076 8,174 Other — — — — — — 1,216 1,216 1,216 1,216 Total securities held-to-maturity — — — — — — 9,292 9,390 9,292 9,390 Total securities $ 1,415 $ 1,416 $ 28,380 $ 28,806 $ 58,579 $ 60,099 $ 162,755 $ 164,540 $ 251,129 $ 254,861 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, 2016 , the Company had accumulated other comprehensive income of $3.6 million , or $2.1 million net of tax, compared to accumulated other comprehensive income of $562,000 , or $332,000 net of tax, at December 31, 2015 . FHLB, FRB and other stock At June 30, 2016 , the Company had $14.4 million in Federal Home Loan Bank (“FHLB”) stock, $7.9 million in Federal Reserve Bank of San Francisco (“FRB”) stock, and $4.7 million in other stock, all carried at cost. During the three months ended June 30, 2016 and December 31, 2015 , FHLB did not repurchase any of the Company’s excess FHLB stock through their stock repurchase program. The Company evaluates its investments in FHLB and other stock for impairment periodically, including their capital adequacy and overall financial condition. No impairment losses have been recorded through June 30, 2016 . |
Loans Held for Investment
Loans Held for Investment | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 508,141 $ 309,741 Franchise 403,855 328,925 Commercial owner occupied (1) 443,060 294,726 SBA 86,076 62,256 Warehouse facilities — 143,200 Real estate loans: Commercial non-owner occupied 526,362 421,583 Multi-family 613,573 429,003 One-to-four family (2) 106,538 80,050 Construction 215,786 169,748 Land 18,341 18,340 Other loans 5,822 5,111 Total gross loans (3) 2,927,554 2,262,683 Less Loans held for sale, net 10,116 8,565 Total gross loans held for investment 2,917,438 2,254,118 Less: Deferred loan origination costs/(fees) and premiums/(discounts), net 3,181 197 Allowance for loan losses (18,955 ) (17,317 ) Loans held for investment, net $ 2,901,664 $ 2,236,998 ______________________________ (1) Majority secured by real estate. (2) Includes second trust deeds. (3) Total gross loans for June 30, 2016 are net of the unaccreted mark-to-market discounts of $12.7 million . 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 $128.4 million for secured loans and $77.0 million for unsecured loans at June 30, 2016 . At June 30, 2016 , the Bank’s largest aggregate outstanding balance of loans to one borrower was $40.0 million of secured credit. Purchased Credit Impaired The following table provides a summary of the Company’s principal investment in purchased credit impaired loans, acquired from Canyon National Bank, IDPK and SCAF as of the period indicated: June 30, 2016 Canyon National IDPK SCAF Total (in thousands) Business loans: Commercial and industrial $ 87 $ 159 $ 4,162 $ 4,408 Commercial owner occupied 517 — 1,105 1,622 Real estate loans: Commercial non-owner occupied 879 626 — 1,505 Other loans — — 418 418 Total purchase credit impaired $ 1,483 $ 785 $ 5,685 $ 7,953 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, 2016 , the Company had $8.0 million of purchased credit impaired loans, of which $580,000 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, 2016 : Six Months Ended June 30, 2016 Canyon National IDPK SCAF Total (in thousands) Balance at the beginning of period $ 1,130 $ 1,596 $ — $ 2,726 Accretable yield at acquisition — — 788 788 Accretion (98 ) (8 ) (170 ) (276 ) Disposals and other (30 ) (419 ) — (449 ) Change in accretable yield — 192 — 192 Balance at the end of period $ 1,002 $ 1,361 $ 618 $ 2,981 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 (in thousands) June 30, 2016 Business loans: Commercial and industrial $ 1,519 $ 1,051 $ — $ 1,051 $ — Franchise 2,225 1,461 1,461 — 731 Commercial owner occupied 865 486 — 486 — SBA 1,394 328 — 329 — Real estate loans: Commercial non-owner occupied — — — — — One-to-four family 181 137 — 137 — Land 37 18 — 18 — Totals $ 6,221 $ 3,481 $ 1,461 $ 2,021 $ 731 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, 2015 Business loans: Commercial and industrial $ 578 $ 313 $ — $ 313 $ — $ 90 $ 29 Franchise 2,394 1,630 1,461 169 731 1,386 3 Commercial owner occupied 883 536 — 536 — 415 67 Real estate loans: Commercial non-owner occupied 329 214 — 214 — 430 19 One-to-four family 98 70 — 70 — 204 5 Land 37 21 — 21 — 13 — Totals $ 4,319 $ 2,784 $ 1,461 $ 1,323 $ 731 $ 2,538 $ 123 Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2016 Business loans: Commercial and industrial $ 350 $ 8 $ 329 $ 13 Franchise 1,461 24 1,546 51 Commercial owner occupied 494 9 506 18 SBA 247 4 135 4 Real estate loans: Commercial non-owner occupied — — 71 2 One-to-four family 393 5 322 10 Land 19 1 19 1 Totals $ 2,964 $ 51 $ 2,928 $ 99 Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2015 Business loans: Commercial and industrial $ 74 $ — $ 4 $ — Franchise 1,723 — 1,171 — Commercial owner occupied 373 15 378 22 Real estate loans: Commercial non-owner occupied 446 21 456 33 One-to-four family 222 10 228 15 Land 8 — 4 — Totals $ 2,846 $ 46 $ 2,241 $ 70 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, 2016 December 31, 2015 (in thousands) Nonaccruing loans $ 3,481 $ 2,736 Accruing loans — 48 Total impaired loans $ 3,481 $ 2,784 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 $3.5 million at June 30, 2016 and $2.7 million at December 31, 2015 . The Company had no loans 90 days or more past due and still accruing at June 30, 2016 and December 31, 2015 . The Company had no TDRs at June 30, 2016 and December 31, 2015 . In addition, the Company had no foreclosed residential real estate property or a recorded investment in consumer mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in process as of June 30, 2016 . Concentration of Credit Risk As of June 30, 2016 , the Company’s loan portfolio was collateralized by various forms of real estate and business assets located predominately 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. 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 Doubtful Total Gross Loans June 30, 2016 (in thousands) Business loans: Commercial and industrial $ 498,556 $ 3,694 $ 5,891 $ — $ 508,141 Franchise 402,394 — — 1,461 403,855 Commercial owner occupied 432,542 1,413 9,105 — 443,060 SBA 85,747 — 329 — 86,076 Real estate loans: Commercial non-owner occupied 522,108 — 4,254 — 526,362 Multi-family 611,143 — 2,430 — 613,573 One-to-four family 105,619 — 919 — 106,538 Construction 215,786 — — — 215,786 Land 18,323 — 18 — 18,341 Other loans 5,404 — 418 — 5,822 Totals $ 2,897,622 $ 5,107 $ 23,364 $ 1,461 $ 2,927,554 Credit Risk Grades Pass Special Substandard Doubtful Total Gross December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 306,513 $ 73 $ 3,155 $ — $ 309,741 Franchise 327,295 — 169 1,461 328,925 Commercial owner occupied 286,270 627 7,829 — 294,726 SBA 62,256 — — — 62,256 Warehouse facilities 143,200 — — — 143,200 Real estate loans: Commercial non-owner occupied 418,917 — 2,666 — 421,583 Multi-family 425,616 — 3,387 — 429,003 One-to-four family 78,997 — 1,053 — 80,050 Construction 169,748 — — — 169,748 Land 18,319 — 21 — 18,340 Other loans 5,111 — — — 5,111 Totals $ 2,242,242 $ 700 $ 18,280 $ 1,461 $ 2,262,683 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, 2016 (in thousands) Business loans: Commercial and industrial $ 506,965 $ 1,144 $ — $ 32 $ 508,141 $ 1,220 Franchise 402,394 — — 1,461 403,855 1,461 Commercial owner occupied 443,060 — — — 443,060 486 SBA 85,830 — — 246 86,076 329 Real estate loans: Commercial non-owner occupied 523,875 — 2,487 — 526,362 411 Multi-family 613,573 — — — 613,573 — One-to-four family 106,498 — — 40 106,538 137 Construction 215,786 — — — 215,786 — Land 18,323 — — 18 18,341 18 Other loans 5,822 — — — 5,822 — Totals $ 2,922,126 $ 1,144 $ 2,487 $ 1,797 $ 2,927,554 $ 4,062 Days Past Due Non- Current 30-59 60-89 90+ Total Accruing December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 309,464 $ 20 $ — $ 257 $ 309,741 $ 463 Franchise 327,295 — — 1,630 328,925 1,630 Commercial owner occupied 294,371 — 355 — 294,726 536 SBA 62,256 — — — 62,256 — Warehouse facilities 143,200 — — — 143,200 — Real estate loans: Commercial non-owner occupied 421,369 214 — — 421,583 1,164 Multi-family 429,003 — — — 429,003 — One-to-four family 79,915 89 — 46 80,050 155 Construction 169,748 — — — 169,748 — Land 18,319 — — 21 18,340 21 Other loans 5,111 — — — 5,111 1 Totals $ 2,260,051 $ 323 $ 355 $ 1,954 $ 2,262,683 $ 3,970 |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
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 Company’s base ALLL factors are determined by management using the Bank’s annualized actual trailing charge-off data over intervals ranging from 84 to 6 months . Adjustments to those base factors are made for relevant internal and external factors. Those factors may 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. |
Subordinated Debentures
Subordinated Debentures | 6 Months Ended |
Jun. 30, 2016 | |
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 bear interest at an annual fixed rate of 5.75% , and the first interest payment on the Notes occurred on March 3, 2015, and interest payments have since been paid, and will continue to be payable semiannually each March 3 and September 3 until September 3, 2024. The Notes can only be redeemed, partially or in whole, prior to the maturity date if the notes do not constitute Tier 2 Capital (for purposes of capital adequacy guidelines of the Board of Governors of the Federal Reserve). Outstanding principal and accrued and unpaid interest are due upon early redemption. 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 unsecured debt and subordinated debt, respectively, and a senior deposit rating of A- for the Bank. These ratings were affirmed by KBRA on October 23, 2015. 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 due April 7, 2034. The net proceeds from the offering of Trust Preferred Securities were contributed as capital to the Bank to support further growth. Interest is payable quarterly on the Subordinated Debentures at three-month LIBOR plus 2.75% per annum, for an effective rate of 3.38% per annum as of June 30, 2016 . 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, 2016 | |
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 weighted average number of stock options excluded for the periods indicated: Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2016 2016 2015 2016 2015 Weighted average stock options excluded 154,251 108,407 464,647 131,703 429,625 The following tables set forth the Company’s earnings per share calculations for the periods indicated: Three Months Ended June 30, 2016 March 31, 2016 June 30, 2015 Net Shares Per Share Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 10,369 $ 8,554 $ 7,825 Basic income available to common stockholders 10,369 27,378,930 $ 0.38 8,554 25,555,654 $ 0.33 7,825 21,493,641 $ 0.36 Effect of dilutive stock option grants and warrants — 466,560 — 396,530 — 335,235 Diluted income available to common stockholders plus assumed conversions $ 10,369 27,845,490 $ 0.37 $ 8,554 25,952,184 $ 0.33 $ 7,825 21,828,876 $ 0.36 Six Months Ended June 30, 2016 2015 Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 18,923 $ 9,613 Basic income available to common stockholders 18,923 26,467,292 $ 0.72 9,613 20,796,655 $ 0.46 Effect of dilutive stock options and warrants — 434,335 — 329,887 Diluted income available to common stockholders plus assumed conversions $ 18,923 26,901,627 $ 0.70 $ 9,613 21,126,542 $ 0.46 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including both those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis and a non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value, and for estimating the fair value of financial assets and financial liabilities not recorded at fair value, are discussed below. In accordance with accounting guidance, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market. Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques. 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. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at June 30, 2016 , March 31, 2016 and June 30, 2015 . A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Management maximizes the use of observable inputs and attempts to minimize the use of unobservable inputs when determining fair value measurements. The following is a description of both the general and specific valuation methodologies used for certain instruments measured at fair value, as well as the general classification of these instruments pursuant to the valuation hierarchy. Cash and due from banks – The carrying amounts of cash and short-term instruments approximate fair value due to the liquidity of these instruments. Investment securities – Investment securities are generally valued based upon quotes obtained from an independent third-party pricing service, which uses evaluated pricing applications and model processes. Observable market inputs, such as, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data are considered as part of the evaluation. The inputs are related directly to the security being evaluated, or indirectly to a similarly situated security. Market assumptions and market data are utilized in the valuation models. The Company reviews the market prices provided by the third-party pricing service for reasonableness based on the Company’s understanding of the market place and credit issues related to the securities. The Company has not made any adjustments to the market quotes provided by them and, accordingly, the Company categorized its investment portfolio within Level 2 of the fair value hierarchy. FHLB, FRB, Other Stock – Due to restrictions placed on transferability, it is not practical to determine the fair value of the stock. Loans Held for Sale — The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. 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. Impaired loans and OREO – Impaired loans and OREO assets are recorded at the fair value less estimated costs to sell at the time of foreclosure. The fair value of impaired loans and OREO assets are 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. Deposit Accounts and Short-term Borrowings — The amounts payable to depositors for demand, savings, and money market accounts, and short-term borrowings are considered to approximate fair value. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities using a discounted cash flow calculation. Interest-bearing deposits and borrowings are included within Level 2 of the fair value hierarchy. Term FHLB Advances and Other Long-term Borrowings— The fair value of long term borrowings is determined using rates currently available for similar borrowings with similar credit risk and for the remaining maturities and are classified as Level 2. 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. Accrued Interest Receivable/Payble – The carrying amounts of accrued interest receivable and accrued interest payable are deemed to approximate fair value. 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, 2016 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 185,299 $ 185,299 $ — $ — $ 185,299 Interest bearing time deposits with financial institutions 3,944 3,944 — — 3,944 Investments held to maturity 9,292 — 9,390 — 9,390 Investment securities available for sale 245,471 — 245,471 — 245,471 FHLB, FRB, and other stock 26,984 N/A N/A N/A N/A Loans held for sale 10,116 — 11,128 — Loans held for investment, net 2,901,664 — — 2,918,457 2,918,457 Accrued interest receivable 12,143 12,143 — — 12,143 Liabilities: Deposit accounts 2,931,001 2,351,184 620,675 — 2,971,859 FHLB advances 75,000 — 75,016 — 75,016 Other borrowings 45,252 — 45,878 — 45,878 Subordinated debentures 70,310 — 68,425 — 68,425 Accrued interest payable 305 305 — — 305 At December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 78,417 $ 78,417 $ — $ — $ 78,417 Interest bearing time deposits with financial institutions 1,972 1,972 — — 1,972 Investments held to maturity 9,642 — 9,572 — 9,572 Investment securities available for sale 280,273 — 280,273 — 280,273 FHLB, FRB, and other stock 22,292 N/A N/A N/A N/A Loans held for sale 8,565 — 9,507 — 9,507 Loans held for investment, net 2,236,998 — — 2,244,936 2,244,936 Accrued interest receivable 9,315 9,315 — — 9,315 Liabilities: Deposit accounts 2,195,123 1,674,148 521,291 — 2,195,439 FHLB advances 148,000 — 148,036 — 148,036 Other borrowings 48,125 — 49,156 — 49,156 Subordinated debentures 70,310 — 68,675 — 68,675 Accrued interest payable 206 206 — — 206 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, 2016 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Available for sale: Municipal bonds $ — $ 118,799 $ — $ 118,799 Collateralized mortgage obligation $ — $ 22,844 $ — $ 22,844 Mortgage-backed securities — 103,828 — 103,828 Total securities available for sale $ — $ 245,471 $ — $ 245,471 December 31, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Available for sale: Municipal bonds $ — $ 130,245 $ — 130,245 Collateralized mortgage obligation $ — $ 24,543 $ — 24,543 Mortgage-backed securities — 125,485 — 125,485 Total securities available for sale $ — $ 280,273 $ — $ 280,273 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 Level 3. At June 30, 2016 , 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 fair value of impaired loans and other real estate owned were determined using Level 3 assumptions, and represents impaired loan and other real estate 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 analysis 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, 2016 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans Business loans: Commercial and industrial $ — $ — $ 1,028 $ 1,028 Commercial owner occupied — — 486 486 SBA — — 329 329 Real estate loans: One-to-four family — — 137 137 Land — — 18 18 Total collateral dependent impaired loans $ — $ — $ 1,998 $ 1,998 Other real estate owned Land — — 711 711 Total other real estate owned — — 711 711 Total assets $ — $ — $ 2,709 $ 2,709 December 31, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans Business loans: Commercial and industrial $ — $ — $ 313 $ 313 Franchise — — 168 168 Commercial owner occupied — — 536 536 Real estate loans: — Commercial non-owner occupied — — 214 214 One-to-four family — — 70 70 Land — — 21 21 Total collateral dependent impaired loans $ — $ — $ 1,322 $ 1,322 Other real estate owned Land — — 1,161 1,161 Total other real estate owned — — 1,161 1,161 Total assets $ — $ — $ 2,483 $ 2,483 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, 2016 Range Fair Value Valuation Techniques Unobservable Inputs Rate Maturity (years) Unobservable Inputs (dollars in thousands) Collateral dependent impaired loans: Business loans: Commercial and industrial $ 1,028 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.00% 1 0 - 10% Commercial owner occupied 486 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.75 - 7.75% 10 0 - 10% SBA 329 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.00 - 6.25% 15-23 0 - 10% Real estate loans: One-to-four family 137 Collateral valuation Management adjustment to reflect current conditions and selling costs 9.00 - 15.00% 4 - 14 0 - 10% Land 18 Collateral valuation Management adjustment to reflect current conditions and selling costs 13.00% 15 0 - 10% Total collateral dependent impaired loans $ 1,998 Other real estate owned Land $ 711 Collateral valuation Management adjustment to reflect current conditions and selling costs —% 0 0 - 10% Total other real estate owned $ 711 December 31, 2015 Range Fair Value Valuation Techniques Unobservable Inputs Rate Maturity (years) Unobservable Inputs (dollars in thousands) Collateral dependent impaired loans: Business loans: Commercial and industrial $ 313 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.50% 6 0 - 10% Franchise $ 168 Collateral valuation Management adjustment to reflect current conditions and selling costs 5.70% - 6.70% 7-8 0 - 10% Commercial owner occupied 536 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.75% 7 0 - 10% Real estate loans: Commercial non-owner occupied 214 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.75% 2-12 0 - 15% One-to-four family $ 70 Collateral valuation Management adjustment to reflect current conditions and selling costs 9.00% - 15.00% 5 - 16 0 - 10% Land $ 21 Collateral valuation Management adjustment to reflect current conditions and selling costs 13.00% 15 0 - 10% Total collateral dependent impaired loans $ 1,322 Other real estate owned Land $ 1,161 Collateral valuation Management adjustment to reflect current conditions and selling costs —% 0 0-10% Total other real estate owned $ 1,161 |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 a straight-line amortization 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, 2016 | |
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 SCAF as of January 31, 2016 and the provisional fair value adjustments and amounts recorded by the Company in 2016 under the acquisition method of accounting: SCAF Book Value Fair Value Adjustments Fair Value ASSETS ACQUIRED (in thousands) Cash and cash equivalents $ 40,947 $ — $ 40,947 Interest bearing deposits with financial institutions 1,972 — 1,972 Investment securities 191,881 (1,627 ) 190,254 Loans, gross 467,197 (11,039 ) 456,158 Allowance for loan losses (7,399 ) 7,399 — Fixed assets 5,335 (833 ) 4,502 Core deposit intangible 493 3,826 4,319 Deferred tax assets 5,618 1,451 7,069 Other assets 10,589 (1,308 ) 9,281 Total assets acquired $ 716,633 $ (2,131 ) $ 714,502 LIABILITIES ASSUMED Deposits $ 636,450 $ 141 $ 636,591 Other Liabilities 9,063 (220 ) 8,843 Total liabilities assumed 645,513 (79 ) 645,434 Excess of assets acquired over liabilities assumed $ 71,120 $ (2,052 ) 69,068 Consideration paid 120,174 Goodwill recognized $ 51,106 The following table represents the assets acquired and liabilities assumed of IDPK as of January 26, 2015 and the 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 (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 5,266 (472 ) 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 $ 424,392 $ (1,383 ) $ 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 $ 53,491 $ (1,596 ) 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 SCAF 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 SCAF IDPK (in thousands) Contractual amounts due $ 539,806 $ 453,987 Cash flows not expected to be collected 2,765 3,795 Expected cash flows 537,041 450,192 Interest component of expected cash flows 80,883 117,299 Fair value of acquired loans $ 456,158 $ 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, 2016 2015 (dollars in thousands) Net interest and other income $ 80,512 $ 67,729 Net income 16,952 11,137 Basic earnings per share 0.62 0.41 Diluted earnings per share 0.61 0.40 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Available-for-sale: Municipal bonds $ 115,755 $ 3,044 $ — $ 118,799 Collateralized mortgage obligation 22,570 274 — 22,844 Mortgage-backed securities 103,512 604 (288 ) 103,828 Total available-for-sale 241,837 3,922 (288 ) 245,471 Held-to-maturity: Mortgage-backed securities 8,076 98 — 8,174 Other 1,216 — — 1,216 Total held-to-maturity 9,292 98 — 9,390 Total securities $ 251,129 $ 4,020 $ (288 ) $ 254,861 December 31, 2015 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Available-for-sale: Municipal bonds $ 128,546 $ 1,796 $ (97 ) $ 130,245 Collateralized mortgage obligation 24,722 4 (183 ) 24,543 Mortgage-backed securities 126,443 153 (1,111 ) 125,485 Total available-for-sale 279,711 1,953 (1,391 ) $ 280,273 Held-to-maturity: Mortgage-backed securities 8,400 — (70 ) 8,330 Other 1,242 — — 1,242 Total held-to-maturity 9,642 — (70 ) 9,572 Total securities $ 289,353 $ 1,953 $ (1,461 ) $ 289,845 |
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, 2016 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) Available-for-sale: Mortgage-backed securities 9 16,209 (77 ) 8 21,940 (211 ) 17 38,149 (288 ) Total securities 9 $ 16,209 $ (77 ) 8 $ 21,940 $ (211 ) 17 $ 38,149 $ (288 ) December 31, 2015 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (dollars in thousands) Available-for-sale: Municipal bonds 32 $ 15,516 $ (61 ) 6 $ 3,349 $ (36 ) 38 $ 18,865 $ (97 ) Collateralized mortgage obligation 5 22,771 (183 ) — — — 5 22,771 (183 ) Mortgage-backed securities 34 83,488 (679 ) 3 12,935 (432 ) 37 96,423 (1,111 ) Total securities available-for-sale 71 121,775 (923 ) 9 16,284 (468 ) 80 138,059 (1,391 ) Held-to-maturity: Mortgage-backed securities 1 8,330 (70 ) — — — 1 8,330 (70 ) Total securities held-to-maturity 1 8,330 (70 ) — — — 1 8,330 (70 ) Total securities 72 $ 130,105 $ (993 ) 9 $ 16,284 $ (468 ) 81 $ 146,389 $ (1,461 ) |
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 at June 30, 2016 , 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 (in thousands) Available-for-sale: Municipal bonds $ 1,415 $ 1,416 $ 28,380 $ 28,806 $ 37,618 $ 38,956 $ 48,342 $ 49,621 $ 115,755 $ 118,799 Collateralized mortgage obligation — — — — — — 22,570 22,844 22,570 22,844 Mortgage-backed securities — — — — 20,961 21,143 82,551 82,685 103,512 103,828 Total securities available-for-sale 1,415 1,416 28,380 28,806 58,579 60,099 153,463 155,150 241,837 245,471 Held-to-maturity: Mortgage-backed securities — — — — — — 8,076 8,174 8,076 8,174 Other — — — — — — 1,216 1,216 1,216 1,216 Total securities held-to-maturity — — — — — — 9,292 9,390 9,292 9,390 Total securities $ 1,415 $ 1,416 $ 28,380 $ 28,806 $ 58,579 $ 60,099 $ 162,755 $ 164,540 $ 251,129 $ 254,861 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 508,141 $ 309,741 Franchise 403,855 328,925 Commercial owner occupied (1) 443,060 294,726 SBA 86,076 62,256 Warehouse facilities — 143,200 Real estate loans: Commercial non-owner occupied 526,362 421,583 Multi-family 613,573 429,003 One-to-four family (2) 106,538 80,050 Construction 215,786 169,748 Land 18,341 18,340 Other loans 5,822 5,111 Total gross loans (3) 2,927,554 2,262,683 Less Loans held for sale, net 10,116 8,565 Total gross loans held for investment 2,917,438 2,254,118 Less: Deferred loan origination costs/(fees) and premiums/(discounts), net 3,181 197 Allowance for loan losses (18,955 ) (17,317 ) Loans held for investment, net $ 2,901,664 $ 2,236,998 ______________________________ (1) Majority secured by real estate. (2) Includes second trust deeds. (3) Total gross loans for June 30, 2016 are net of the unaccreted mark-to-market discounts of $12.7 million . |
Summary of Company's investment in purchased credit impaired loans | The following table provides a summary of the Company’s principal investment in purchased credit impaired loans, acquired from Canyon National Bank, IDPK and SCAF as of the period indicated: June 30, 2016 Canyon National IDPK SCAF Total (in thousands) Business loans: Commercial and industrial $ 87 $ 159 $ 4,162 $ 4,408 Commercial owner occupied 517 — 1,105 1,622 Real estate loans: Commercial non-owner occupied 879 626 — 1,505 Other loans — — 418 418 Total purchase credit impaired $ 1,483 $ 785 $ 5,685 $ 7,953 |
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, 2016 : Six Months Ended June 30, 2016 Canyon National IDPK SCAF Total (in thousands) Balance at the beginning of period $ 1,130 $ 1,596 $ — $ 2,726 Accretable yield at acquisition — — 788 788 Accretion (98 ) (8 ) (170 ) (276 ) Disposals and other (30 ) (419 ) — (449 ) Change in accretable yield — 192 — 192 Balance at the end of period $ 1,002 $ 1,361 $ 618 $ 2,981 |
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 (in thousands) June 30, 2016 Business loans: Commercial and industrial $ 1,519 $ 1,051 $ — $ 1,051 $ — Franchise 2,225 1,461 1,461 — 731 Commercial owner occupied 865 486 — 486 — SBA 1,394 328 — 329 — Real estate loans: Commercial non-owner occupied — — — — — One-to-four family 181 137 — 137 — Land 37 18 — 18 — Totals $ 6,221 $ 3,481 $ 1,461 $ 2,021 $ 731 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, 2015 Business loans: Commercial and industrial $ 578 $ 313 $ — $ 313 $ — $ 90 $ 29 Franchise 2,394 1,630 1,461 169 731 1,386 3 Commercial owner occupied 883 536 — 536 — 415 67 Real estate loans: Commercial non-owner occupied 329 214 — 214 — 430 19 One-to-four family 98 70 — 70 — 204 5 Land 37 21 — 21 — 13 — Totals $ 4,319 $ 2,784 $ 1,461 $ 1,323 $ 731 $ 2,538 $ 123 Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2016 Business loans: Commercial and industrial $ 350 $ 8 $ 329 $ 13 Franchise 1,461 24 1,546 51 Commercial owner occupied 494 9 506 18 SBA 247 4 135 4 Real estate loans: Commercial non-owner occupied — — 71 2 One-to-four family 393 5 322 10 Land 19 1 19 1 Totals $ 2,964 $ 51 $ 2,928 $ 99 Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2015 Business loans: Commercial and industrial $ 74 $ — $ 4 $ — Franchise 1,723 — 1,171 — Commercial owner occupied 373 15 378 22 Real estate loans: Commercial non-owner occupied 446 21 456 33 One-to-four family 222 10 228 15 Land 8 — 4 — Totals $ 2,846 $ 46 $ 2,241 $ 70 |
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, 2016 December 31, 2015 (in thousands) Nonaccruing loans $ 3,481 $ 2,736 Accruing loans — 48 Total impaired loans $ 3,481 $ 2,784 |
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 Doubtful Total Gross Loans June 30, 2016 (in thousands) Business loans: Commercial and industrial $ 498,556 $ 3,694 $ 5,891 $ — $ 508,141 Franchise 402,394 — — 1,461 403,855 Commercial owner occupied 432,542 1,413 9,105 — 443,060 SBA 85,747 — 329 — 86,076 Real estate loans: Commercial non-owner occupied 522,108 — 4,254 — 526,362 Multi-family 611,143 — 2,430 — 613,573 One-to-four family 105,619 — 919 — 106,538 Construction 215,786 — — — 215,786 Land 18,323 — 18 — 18,341 Other loans 5,404 — 418 — 5,822 Totals $ 2,897,622 $ 5,107 $ 23,364 $ 1,461 $ 2,927,554 Credit Risk Grades Pass Special Substandard Doubtful Total Gross December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 306,513 $ 73 $ 3,155 $ — $ 309,741 Franchise 327,295 — 169 1,461 328,925 Commercial owner occupied 286,270 627 7,829 — 294,726 SBA 62,256 — — — 62,256 Warehouse facilities 143,200 — — — 143,200 Real estate loans: Commercial non-owner occupied 418,917 — 2,666 — 421,583 Multi-family 425,616 — 3,387 — 429,003 One-to-four family 78,997 — 1,053 — 80,050 Construction 169,748 — — — 169,748 Land 18,319 — 21 — 18,340 Other loans 5,111 — — — 5,111 Totals $ 2,242,242 $ 700 $ 18,280 $ 1,461 $ 2,262,683 |
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, 2016 (in thousands) Business loans: Commercial and industrial $ 506,965 $ 1,144 $ — $ 32 $ 508,141 $ 1,220 Franchise 402,394 — — 1,461 403,855 1,461 Commercial owner occupied 443,060 — — — 443,060 486 SBA 85,830 — — 246 86,076 329 Real estate loans: Commercial non-owner occupied 523,875 — 2,487 — 526,362 411 Multi-family 613,573 — — — 613,573 — One-to-four family 106,498 — — 40 106,538 137 Construction 215,786 — — — 215,786 — Land 18,323 — — 18 18,341 18 Other loans 5,822 — — — 5,822 — Totals $ 2,922,126 $ 1,144 $ 2,487 $ 1,797 $ 2,927,554 $ 4,062 Days Past Due Non- Current 30-59 60-89 90+ Total Accruing December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 309,464 $ 20 $ — $ 257 $ 309,741 $ 463 Franchise 327,295 — — 1,630 328,925 1,630 Commercial owner occupied 294,371 — 355 — 294,726 536 SBA 62,256 — — — 62,256 — Warehouse facilities 143,200 — — — 143,200 — Real estate loans: Commercial non-owner occupied 421,369 214 — — 421,583 1,164 Multi-family 429,003 — — — 429,003 — One-to-four family 79,915 89 — 46 80,050 155 Construction 169,748 — — — 169,748 — Land 18,319 — — 21 18,340 21 Other loans 5,111 — — — 5,111 1 Totals $ 2,260,051 $ 323 $ 355 $ 1,954 $ 2,262,683 $ 3,970 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 three and six months ended for the periods indicated: Three Months Ended June 30, 2016 Commercial and industrial Franchise 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, March 31, 2016 $ 3,023 $ 3,568 $ 1,965 $ 1,628 $ 7 $ 1,897 $ 2,932 $ 705 $ 2,504 $ 204 $ 22 $ 18,455 Charge-offs (710 ) (169 ) (329 ) (5 ) — — — (7 ) — — — (1,220 ) Recoveries 40 — — 82 — — — 5 — — 4 131 Provisions for (reduction in) loan losses 2,132 (147 ) 505 (146 ) (7 ) 207 (598 ) (96 ) (259 ) — (2 ) 1,589 Balance, June 30, 2016 $ 4,485 $ 3,252 $ 2,141 $ 1,559 $ — $ 2,104 $ 2,334 $ 607 $ 2,245 $ 204 $ 24 $ 18,955 Six Months Ended June 30, 2016 Commercial and industrial Franchise 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, 2015 $ 3,449 $ 3,124 $ 1,870 $ 1,500 $ 759 $ 2,048 $ 1,583 $ 698 $ 2,030 $ 233 $ 23 $ 17,317 Charge-offs (710 ) (169 ) (329 ) (5 ) — — — (7 ) — — — (1,220 ) Recoveries 54 — — 85 — — — 6 — — 4 149 Provisions for (reduction in) loan losses 1,692 297 600 (21 ) (759 ) 56 751 (90 ) 215 (29 ) (3 ) 2,709 Balance, June 30, 2016 $ 4,485 $ 3,252 $ 2,141 $ 1,559 $ — $ 2,104 $ 2,334 $ 607 $ 2,245 $ 204 $ 24 $ 18,955 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ 731 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 731 General portfolio allocation 4,485 2,521 2,141 1,559 — 2,104 2,334 607 2,245 204 24 18,224 Loans individually evaluated for impairment 1,051 1,461 486 328 — — — 137 — 18 — 3,481 Specific reserves to total loans individually evaluated for impairment — % 50.03 % — % — % — % — % — % — % — % — % — % 21.00 % Loans collectively evaluated for impairment $ 507,090 $ 402,394 $ 442,574 $ 85,748 $ — $ 526,362 $ 613,573 $ 106,401 $ 215,786 $ 18,323 $ 5,822 $ 2,924,073 General reserves to total loans collectively evaluated for impairment 0.88 % 0.63 % 0.48 % 1.82 % — % 0.40 % 0.38 % 0.57 % 1.04 % 1.11 % 0.41 % 0.62 % Total gross loans $ 508,141 $ 403,855 $ 443,060 $ 86,076 $ — $ 526,362 $ 613,573 $ 106,538 $ 215,786 $ 18,341 $ 5,822 $ 2,927,554 Total allowance to gross loans 0.88 % 0.81 % 0.48 % 1.81 % — % 0.40 % 0.38 % 0.57 % 1.04 % 1.11 % 0.41 % 0.65 % Three Months Ended June 30, 2015 Commercial and industrial Franchise 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, March 31, 2015 $ 3,443 $ 1,740 $ 1,602 $ 547 $ 889 $ 2,131 $ 1,303 $ 674 $ 1,210 $ 78 $ 29 $ 13,646 Charge-offs — (393 ) — — — — — — — — — (393 ) Recoveries 12 — — 1 — — — — — — 1 14 Provisions for (reduction in) loan losses 271 477 246 338 (14 ) (168 ) 229 (21 ) 192 284 (1 ) 1,833 Balance, June 30, 2015 $ 3,726 $ 1,824 $ 1,848 $ 886 $ 875 $ 1,963 $ 1,532 $ 653 $ 1,402 $ 362 $ 29 $ 15,100 Six Months Ended June 30, 2015 Commercial and industrial Franchise 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 $ 2,646 $ 1,554 $ 1,757 $ 568 $ 546 $ 2,007 $ 1,060 $ 842 $ 1,088 $ 108 $ 24 $ 12,200 Charge-offs (24 ) (765 ) — — — — — — — — — (789 ) Recoveries 24 — — 1 — — — — — — 1 26 Provisions for (reduction in) loan losses 1,080 1,035 91 317 329 (44 ) 472 (189 ) 314 254 4 3,663 Balance, June 30, 2015 $ 3,726 $ 1,824 $ 1,848 $ 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 3,503 1,824 1,848 886 875 1,963 1,532 653 1,402 362 29 14,877 Loans individually evaluated for impairment 223 1,461 370 — — 443 — 206 — 23 — 2,726 Specific reserves to total loans individually evaluated for impairment 100.00 % — % — % — % — % — % — % — % — % — % — % 8.18 % Loans collectively evaluated for impairment $ 284,650 $ 256,121 $ 294,175 $ 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 1.23 % 0.71 % 0.63 % 1.76 % 0.44 % 0.49 % 0.38 % 0.78 % 1.13 % 2.22 % 0.60 % 0.70 % Total gross loans $ 284,873 $ 257,582 $ 294,545 $ 50,306 $ 198,113 $ 402,786 $ 400,237 $ 84,283 $ 124,448 $ 16,339 $ 4,811 $ 2,118,323 Total allowance to gross loans 1.31 % 0.71 % 0.63 % 1.76 % 0.44 % 0.49 % 0.38 % 0.77 % 1.13 % 2.22 % 0.60 % 0.71 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 weighted average number of stock options excluded for the periods indicated: Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2016 2016 2015 2016 2015 Weighted average stock options excluded 154,251 108,407 464,647 131,703 429,625 |
Schedule of Company's unaudited earnings per share calculations | The following tables set forth the Company’s earnings per share calculations for the periods indicated: Three Months Ended June 30, 2016 March 31, 2016 June 30, 2015 Net Shares Per Share Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 10,369 $ 8,554 $ 7,825 Basic income available to common stockholders 10,369 27,378,930 $ 0.38 8,554 25,555,654 $ 0.33 7,825 21,493,641 $ 0.36 Effect of dilutive stock option grants and warrants — 466,560 — 396,530 — 335,235 Diluted income available to common stockholders plus assumed conversions $ 10,369 27,845,490 $ 0.37 $ 8,554 25,952,184 $ 0.33 $ 7,825 21,828,876 $ 0.36 Six Months Ended June 30, 2016 2015 Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 18,923 $ 9,613 Basic income available to common stockholders 18,923 26,467,292 $ 0.72 9,613 20,796,655 $ 0.46 Effect of dilutive stock options and warrants — 434,335 — 329,887 Diluted income available to common stockholders plus assumed conversions $ 18,923 26,901,627 $ 0.70 $ 9,613 21,126,542 $ 0.46 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 185,299 $ 185,299 $ — $ — $ 185,299 Interest bearing time deposits with financial institutions 3,944 3,944 — — 3,944 Investments held to maturity 9,292 — 9,390 — 9,390 Investment securities available for sale 245,471 — 245,471 — 245,471 FHLB, FRB, and other stock 26,984 N/A N/A N/A N/A Loans held for sale 10,116 — 11,128 — Loans held for investment, net 2,901,664 — — 2,918,457 2,918,457 Accrued interest receivable 12,143 12,143 — — 12,143 Liabilities: Deposit accounts 2,931,001 2,351,184 620,675 — 2,971,859 FHLB advances 75,000 — 75,016 — 75,016 Other borrowings 45,252 — 45,878 — 45,878 Subordinated debentures 70,310 — 68,425 — 68,425 Accrued interest payable 305 305 — — 305 At December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 78,417 $ 78,417 $ — $ — $ 78,417 Interest bearing time deposits with financial institutions 1,972 1,972 — — 1,972 Investments held to maturity 9,642 — 9,572 — 9,572 Investment securities available for sale 280,273 — 280,273 — 280,273 FHLB, FRB, and other stock 22,292 N/A N/A N/A N/A Loans held for sale 8,565 — 9,507 — 9,507 Loans held for investment, net 2,236,998 — — 2,244,936 2,244,936 Accrued interest receivable 9,315 9,315 — — 9,315 Liabilities: Deposit accounts 2,195,123 1,674,148 521,291 — 2,195,439 FHLB advances 148,000 — 148,036 — 148,036 Other borrowings 48,125 — 49,156 — 49,156 Subordinated debentures 70,310 — 68,675 — 68,675 Accrued interest payable 206 206 — — 206 |
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, 2016 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Available for sale: Municipal bonds $ — $ 118,799 $ — $ 118,799 Collateralized mortgage obligation $ — $ 22,844 $ — $ 22,844 Mortgage-backed securities — 103,828 — 103,828 Total securities available for sale $ — $ 245,471 $ — $ 245,471 December 31, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Available for sale: Municipal bonds $ — $ 130,245 $ — 130,245 Collateralized mortgage obligation $ — $ 24,543 $ — 24,543 Mortgage-backed securities — 125,485 — 125,485 Total securities available for sale $ — $ 280,273 $ — $ 280,273 |
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, 2016 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans Business loans: Commercial and industrial $ — $ — $ 1,028 $ 1,028 Commercial owner occupied — — 486 486 SBA — — 329 329 Real estate loans: One-to-four family — — 137 137 Land — — 18 18 Total collateral dependent impaired loans $ — $ — $ 1,998 $ 1,998 Other real estate owned Land — — 711 711 Total other real estate owned — — 711 711 Total assets $ — $ — $ 2,709 $ 2,709 December 31, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans Business loans: Commercial and industrial $ — $ — $ 313 $ 313 Franchise — — 168 168 Commercial owner occupied — — 536 536 Real estate loans: — Commercial non-owner occupied — — 214 214 One-to-four family — — 70 70 Land — — 21 21 Total collateral dependent impaired loans $ — $ — $ 1,322 $ 1,322 Other real estate owned Land — — 1,161 1,161 Total other real estate owned — — 1,161 1,161 Total assets $ — $ — $ 2,483 $ 2,483 |
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, 2016 Range Fair Value Valuation Techniques Unobservable Inputs Rate Maturity (years) Unobservable Inputs (dollars in thousands) Collateral dependent impaired loans: Business loans: Commercial and industrial $ 1,028 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.00% 1 0 - 10% Commercial owner occupied 486 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.75 - 7.75% 10 0 - 10% SBA 329 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.00 - 6.25% 15-23 0 - 10% Real estate loans: One-to-four family 137 Collateral valuation Management adjustment to reflect current conditions and selling costs 9.00 - 15.00% 4 - 14 0 - 10% Land 18 Collateral valuation Management adjustment to reflect current conditions and selling costs 13.00% 15 0 - 10% Total collateral dependent impaired loans $ 1,998 Other real estate owned Land $ 711 Collateral valuation Management adjustment to reflect current conditions and selling costs —% 0 0 - 10% Total other real estate owned $ 711 December 31, 2015 Range Fair Value Valuation Techniques Unobservable Inputs Rate Maturity (years) Unobservable Inputs (dollars in thousands) Collateral dependent impaired loans: Business loans: Commercial and industrial $ 313 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.50% 6 0 - 10% Franchise $ 168 Collateral valuation Management adjustment to reflect current conditions and selling costs 5.70% - 6.70% 7-8 0 - 10% Commercial owner occupied 536 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.75% 7 0 - 10% Real estate loans: Commercial non-owner occupied 214 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.75% 2-12 0 - 15% One-to-four family $ 70 Collateral valuation Management adjustment to reflect current conditions and selling costs 9.00% - 15.00% 5 - 16 0 - 10% Land $ 21 Collateral valuation Management adjustment to reflect current conditions and selling costs 13.00% 15 0 - 10% Total collateral dependent impaired loans $ 1,322 Other real estate owned Land $ 1,161 Collateral valuation Management adjustment to reflect current conditions and selling costs —% 0 0-10% Total other real estate owned $ 1,161 |
Significant Accounting Polici26
Significant Accounting Policies (Details) - Core deposit | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 | |
Maximum | |
Acquisitions | |
Extension period for measurement for fair values (in years) | 1 year |
Acquisitions - Security Califor
Acquisitions - Security California Bancorp - Narrative (Details) $ / shares in Units, $ in Thousands | Jan. 31, 2016USD ($)bankshares | Jun. 30, 2016USD ($) | Jan. 29, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Assets | $ 3,598,653 | $ 2,790,646 | |||
Loans | 2,927,554 | 2,262,683 | $ 2,118,323 | ||
Deposits | 2,931,001 | 2,195,123 | |||
Closing stock price of common stock ($ per share) | $ / shares | $ 20.53 | ||||
Goodwill | 101,939 | $ 50,832 | |||
Adjustment | $ 146 | ||||
Security California Bancorp | |||||
Business Acquisition [Line Items] | |||||
Assets | $ 715,000 | ||||
Loans | 456,000 | ||||
Deposits | $ 637,000 | ||||
Equity issued (shares) | 0.9629 | ||||
Consideration paid | $ 120,174 | ||||
Cash consideration | $ 788 | ||||
Number Of branches | bank | 6 | ||||
Goodwill | $ 51,106 | ||||
Common Stock | Security California Bancorp | |||||
Business Acquisition [Line Items] | |||||
Number of shares of common stock issued as consideration | shares | 5,815,051 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 119,400 |
Acquisitions - Security Calif29
Acquisitions - Security California Bancorp table (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 101,939 | $ 50,832 | |
Security California Bancorp | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 40,947 | ||
Interest bearing deposits with financial institutions | 1,972 | ||
Investment securities | 190,254 | ||
Loans, gross | 456,158 | ||
Allowance for loan losses | 0 | ||
Fixed assets | 4,502 | ||
Core deposit intangible | 4,319 | ||
Deferred income taxes | 7,069 | ||
Other assets | 9,281 | ||
Total assets acquired | 714,502 | ||
Deposits | 636,591 | ||
Other Liabilities | 8,843 | ||
Total liabilities assumed | 645,434 | ||
Excess of assets acquired over liabilities assumed | 69,068 | ||
Consideration paid | 120,174 | ||
Goodwill | 51,106 | ||
SCAF Book Value | Security California Bancorp | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 40,947 | ||
Interest bearing deposits with financial institutions | 1,972 | ||
Investment securities | 191,881 | ||
Loans, gross | 467,197 | ||
Allowance for loan losses | (7,399) | ||
Fixed assets | 5,335 | ||
Core deposit intangible | 493 | ||
Deferred income taxes | 5,618 | ||
Other assets | 10,589 | ||
Total assets acquired | 716,633 | ||
Deposits | 636,450 | ||
Other Liabilities | 9,063 | ||
Total liabilities assumed | 645,513 | ||
Excess of assets acquired over liabilities assumed | 71,120 | ||
Fair Value Adjustments | Security California Bancorp | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0 | ||
Interest bearing deposits with financial institutions | 0 | ||
Investment securities | (1,627) | ||
Loans, gross | (11,039) | ||
Allowance for loan losses | 7,399 | ||
Fixed assets | (833) | ||
Core deposit intangible | 3,826 | ||
Deferred income taxes | 1,451 | ||
Other assets | (1,308) | ||
Total assets acquired | (2,131) | ||
Deposits | 141 | ||
Other Liabilities | (220) | ||
Total liabilities assumed | (79) | ||
Excess of assets acquired over liabilities assumed | $ (2,052) |
Acquisitions - Independence Ban
Acquisitions - Independence Bank Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 26, 2015 | Jun. 30, 2016 | Jan. 29, 2016 | Dec. 31, 2015 |
Acquisitions | ||||
Closing stock price of common stock ($ per share) | $ 20.53 | |||
Goodwill | $ 101,939 | $ 50,832 | ||
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 ($ per share) | $ 15.83 | |||
Goodwill | $ 27,882 |
Acquisitions - Independence Ass
Acquisitions - Independence Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 26, 2015 | Jun. 30, 2016 | Dec. 31, 2015 |
Acquisitions | |||
Goodwill | $ 101,939 | $ 50,832 | |
IDPK | |||
Acquisitions | |||
Cash and cash equivalents | $ 10,486 | ||
Investment securities | 56,121 | ||
Loans, gross | 332,893 | ||
Allowance for loan losses | 0 | ||
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 | ||
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 | 5,266 | ||
Bank owned life insurance | 11,276 | ||
Core deposit intangible | 904 | ||
Other assets | 3,756 | ||
Total assets acquired | 424,392 | ||
Deposits | 335,685 | ||
FHLB advances | 33,300 | ||
Other Liabilities | 1,916 | ||
Total liabilities assumed | 370,901 | ||
Excess of assets acquired over liabilities assumed | 53,491 | ||
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 | (472) | ||
Bank owned life insurance | 0 | ||
Core deposit intangible | 1,999 | ||
Other assets | 780 | ||
Total assets acquired | (1,383) | ||
Deposits | 333 | ||
FHLB advances | 0 | ||
Other Liabilities | (120) | ||
Total liabilities assumed | 213 | ||
Excess of assets acquired over liabilities assumed | $ (1,596) |
Acquisitions - Loan Information
Acquisitions - Loan Information (Details) - Acquired Loans - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 26, 2015 |
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 | |
Security California Bancorp | ||
Acquisitions | ||
Contractual amounts due | $ 539,806 | |
Cash flows not expected to be collected | 2,765 | |
Expected cash flows | 537,041 | |
Interest component of expected cash flows | 80,883 | |
Fair value of acquired loans | $ 456,158 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Business Combinations [Abstract] | ||
Net interest and other income | $ 80,512 | $ 67,729 |
Net income | $ 16,952 | $ 11,137 |
Basic earnings per share (in dollars per share) | $ 0.62 | $ 0.41 |
Diluted earnings per share (in dollars per share) | $ 0.61 | $ 0.40 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Total securities | ||
Amortized Cost | $ 251,129 | $ 289,353 |
Unrealized Gain | 4,020 | 1,953 |
Unrealized Loss | (288) | (1,461) |
Estimated Fair Value | 254,861 | 289,845 |
Available for sale: | ||
Total | 241,837 | 279,711 |
Unrealized Gain | 3,922 | 1,953 |
Unrealized Loss | (288) | (1,391) |
Investment securities available for sale, at fair value | 245,471 | 280,273 |
Held to maturity: | ||
Amortized Cost | 9,292 | 9,642 |
Unrealized Gain | 98 | 0 |
Unrealized Loss | 0 | (70) |
Estimated Fair Value | 9,390 | 9,572 |
Municipal bonds | ||
Available for sale: | ||
Total | 115,755 | 128,546 |
Unrealized Gain | 3,044 | 1,796 |
Unrealized Loss | 0 | (97) |
Investment securities available for sale, at fair value | 118,799 | 130,245 |
Collateralized mortgage obligation | ||
Available for sale: | ||
Total | 22,570 | 24,722 |
Unrealized Gain | 274 | 4 |
Unrealized Loss | 0 | (183) |
Investment securities available for sale, at fair value | 22,844 | 24,543 |
Mortgage-backed securities | ||
Available for sale: | ||
Total | 103,512 | 126,443 |
Unrealized Gain | 604 | 153 |
Unrealized Loss | (288) | (1,111) |
Investment securities available for sale, at fair value | 103,828 | 125,485 |
Held to maturity: | ||
Amortized Cost | 8,076 | 8,400 |
Unrealized Gain | 98 | 0 |
Unrealized Loss | 0 | (70) |
Estimated Fair Value | 8,174 | 8,330 |
Other | ||
Held to maturity: | ||
Amortized Cost | 1,216 | 1,242 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | $ 1,216 | $ 1,242 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)purchase_agreement | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Investment Securities | ||||||
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 | $ 28,500 | ||||
Realized OTTI losses | 0 | $ 207 | $ 0 | 207 | $ 0 | |
Book value | 245,471 | 245,471 | $ 280,273 | |||
Gross gains | 532 | 762 | 146 | 1,300 | 264 | |
Gross losses | 0 | 9 | 7 | 9 | 9 | |
Proceeds from sale or maturity of securities available for sale | 21,100 | 186,000 | $ 7,300 | 207,000 | 16,100 | |
Accumulated other comprehensive income (loss) before tax amount | 3,600 | 3,600 | 562 | |||
Accumulated other comprehensive income, net of tax | 2,100 | 2,100 | $ 332 | |||
FHLB stock | 14,400 | 14,400 | ||||
FRB stock | 7,900 | 7,900 | ||||
Other stock | 4,700 | 4,700 | ||||
Proceeds from sale or maturity of securities available for sale | 211,303 | $ 16,070 | ||||
HOA | ||||||
Investment Securities | ||||||
Value of inverse putable reverse repurchases secured by collateral | 16,800 | 16,800 | ||||
Mortgage-backed securities | ||||||
Investment Securities | ||||||
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 59,600 | 59,600 | ||||
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $ 62,100 | $ 62,100 | ||||
CRA | ||||||
Investment Securities | ||||||
Par value | 50 | |||||
Book value | $ 500,000 |
Investment Securities - Investm
Investment Securities - Investment Category and Length of Time (Details) $ in Thousands | Jun. 30, 2016USD ($)investment_security | Dec. 31, 2015USD ($)investment_security |
Less than 12 months | ||
Number | investment_security | 9 | 71 |
Fair Value | $ 16,209 | $ 121,775 |
Gross Unrealized Holding Losses | $ (77) | $ (923) |
12 months or Longer | ||
Number | investment_security | 8 | 9 |
Fair Value | $ 21,940 | $ 16,284 |
Gross Unrealized Holding Losses | $ (211) | $ (468) |
Total | ||
Number | investment_security | 17 | 80 |
Fair Value | $ 38,149 | $ 138,059 |
Gross Unrealized Holding Losses | (288) | $ (1,391) |
Held-to-maturity, less than 12 months, number of securities | investment_security | 1 | |
Held-to-maturity, less than 12 months, fair value | $ 8,330 | |
Held-to-maturity, less than 12 months, gross unrealized holding losses | $ (70) | |
Held-to-maturity, 12 months or longer, number of securities | investment_security | 0 | |
Held-to-maturity, 12 months or longer, fair value | $ 0 | |
Held-to-maturity, 12 months or longer, gross unrealized holding losses | $ 0 | |
Held-to-maturity, number of securities | investment_security | 1 | |
Held-to-maturity securities, fair value | $ 8,330 | |
Unrealized Loss | $ 0 | $ (70) |
Total securities, less than 12 months, number of securities | investment_security | 72 | |
Total securities, less than 12 months, fair value | $ 130,105 | |
Total securities, less than 12 months, gross unrealized holding losses | $ (993) | |
Total securities, 12 months or longer, number of securities | investment_security | 9 | |
Total securities, 12 months or longer, fair value | $ 16,284 | |
Total securities, 12 months or longer, gross unrealized holding losses | $ (468) | |
Total securities, number of securities | investment_security | 81 | |
Total securities, fair value | $ 146,389 | |
Total securities, gross unrealized holding losses | $ (1,461) | |
Municipal bonds | ||
Less than 12 months | ||
Number | investment_security | 32 | |
Fair Value | $ 15,516 | |
Gross Unrealized Holding Losses | $ (61) | |
12 months or Longer | ||
Number | investment_security | 6 | |
Fair Value | $ 3,349 | |
Gross Unrealized Holding Losses | $ (36) | |
Total | ||
Number | investment_security | 38 | |
Fair Value | $ 18,865 | |
Gross Unrealized Holding Losses | $ (97) | |
Collateralized mortgage obligation | ||
Less than 12 months | ||
Number | investment_security | 5 | |
Fair Value | $ 22,771 | |
Gross Unrealized Holding Losses | $ (183) | |
12 months or Longer | ||
Number | investment_security | 0 | |
Fair Value | $ 0 | |
Gross Unrealized Holding Losses | $ 0 | |
Total | ||
Number | investment_security | 5 | |
Fair Value | $ 22,771 | |
Gross Unrealized Holding Losses | $ (183) | |
Mortgage-backed securities | ||
Less than 12 months | ||
Number | investment_security | 9 | 34 |
Fair Value | $ 16,209 | $ 83,488 |
Gross Unrealized Holding Losses | $ (77) | $ (679) |
12 months or Longer | ||
Number | investment_security | 8 | 3 |
Fair Value | $ 21,940 | $ 12,935 |
Gross Unrealized Holding Losses | $ (211) | $ (432) |
Total | ||
Number | investment_security | 17 | 37 |
Fair Value | $ 38,149 | $ 96,423 |
Gross Unrealized Holding Losses | (288) | $ (1,111) |
Held-to-maturity, less than 12 months, number of securities | investment_security | 1 | |
Held-to-maturity, less than 12 months, fair value | $ 8,330 | |
Held-to-maturity, less than 12 months, gross unrealized holding losses | $ (70) | |
Held-to-maturity, 12 months or longer, number of securities | investment_security | 0 | |
Held-to-maturity, 12 months or longer, fair value | $ 0 | |
Held-to-maturity, 12 months or longer, gross unrealized holding losses | $ 0 | |
Held-to-maturity, number of securities | investment_security | 1 | |
Held-to-maturity securities, fair value | $ 8,330 | |
Unrealized Loss | $ 0 | $ (70) |
Investment Securities - By Cont
Investment Securities - By Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
One Year or Less | $ 1,415 | |
More than One Year to Five Years | 28,380 | |
More than Five Years to Ten Years | 58,579 | |
More than Ten Years | 162,755 | |
Total | 251,129 | |
Fair Value | ||
One Year or Less | 1,416 | |
More than One Year to Five Years | 28,806 | |
More than Five Years to Ten Years | 60,099 | |
More than Ten Years | 164,540 | |
Total | 254,861 | |
Amortized Cost | ||
One Year or Less | 1,415 | |
More than One Year to Five Years | 28,380 | |
More than Five Years to Ten Years | 58,579 | |
More than Ten Years | 153,463 | |
Total | 241,837 | $ 279,711 |
Fair Value | ||
One Year or Less | 1,416 | |
More than One Year to Five Years | 28,806 | |
More than Five Years to Ten Years | 60,099 | |
More than Ten Years | 155,150 | |
Total | 245,471 | 280,273 |
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 9,292 | |
Amortized Cost | 9,292 | 9,642 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 9,390 | |
Total | 9,390 | 9,572 |
Municipal bonds | ||
Amortized Cost | ||
One Year or Less | 1,415 | |
More than One Year to Five Years | 28,380 | |
More than Five Years to Ten Years | 37,618 | |
More than Ten Years | 48,342 | |
Total | 115,755 | 128,546 |
Fair Value | ||
One Year or Less | 1,416 | |
More than One Year to Five Years | 28,806 | |
More than Five Years to Ten Years | 38,956 | |
More than Ten Years | 49,621 | |
Total | 118,799 | 130,245 |
Collateralized mortgage obligation | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 22,570 | |
Total | 22,570 | 24,722 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 22,844 | |
Total | 22,844 | 24,543 |
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 | 20,961 | |
More than Ten Years | 82,551 | |
Total | 103,512 | 126,443 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 21,143 | |
More than Ten Years | 82,685 | |
Total | 103,828 | 125,485 |
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 8,076 | |
Amortized Cost | 8,076 | 8,400 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 8,174 | |
Total | 8,174 | $ 8,330 |
Other | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 1,216 | |
Amortized Cost | 1,216 | |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 1,216 | |
Total | $ 1,216 |
Loans Held for Investment - Com
Loans Held for Investment - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Loans Held for Investment | ||||||
Total gross loans | $ 2,927,554 | $ 2,262,683 | $ 2,118,323 | |||
Loans held for sale, at lower of cost or market | 10,116 | 8,565 | ||||
Total gross loans held for investment | 2,917,438 | 2,254,118 | ||||
Deferred loan origination costs/(fees) and premiums/(discounts), net | 3,181 | 197 | ||||
Allowance for loan losses | (18,955) | $ (18,455) | (17,317) | (15,100) | $ (13,646) | $ (12,200) |
Loans held for investment, net | 2,901,664 | 2,236,998 | ||||
Unaccreted mark-to-market discount | 12,700 | |||||
Commercial and industrial | ||||||
Loans Held for Investment | ||||||
Total gross loans | 508,141 | 309,741 | 284,873 | |||
Allowance for loan losses | (4,485) | (3,023) | (3,449) | (3,726) | (3,443) | (2,646) |
Franchise | ||||||
Loans Held for Investment | ||||||
Total gross loans | 403,855 | 328,925 | 257,582 | |||
Allowance for loan losses | (3,252) | (3,568) | (3,124) | (1,824) | (1,740) | (1,554) |
Commercial owner occupied | ||||||
Loans Held for Investment | ||||||
Total gross loans | 443,060 | 294,726 | 294,545 | |||
Allowance for loan losses | (2,141) | (1,965) | (1,870) | (1,848) | (1,602) | (1,757) |
SBA | ||||||
Loans Held for Investment | ||||||
Total gross loans | 86,076 | 62,256 | 50,306 | |||
Allowance for loan losses | (1,559) | (1,628) | (1,500) | (886) | (547) | (568) |
Warehouse facilities | ||||||
Loans Held for Investment | ||||||
Total gross loans | 0 | 143,200 | 198,113 | |||
Allowance for loan losses | 0 | (7) | (759) | (875) | (889) | (546) |
Commercial non-owner occupied | ||||||
Loans Held for Investment | ||||||
Total gross loans | 526,362 | 421,583 | 402,786 | |||
Allowance for loan losses | (2,104) | (1,897) | (2,048) | (1,963) | (2,131) | (2,007) |
Multi-family | ||||||
Loans Held for Investment | ||||||
Total gross loans | 613,573 | 429,003 | 400,237 | |||
Allowance for loan losses | (2,334) | (2,932) | (1,583) | (1,532) | (1,303) | (1,060) |
One-to-four family | ||||||
Loans Held for Investment | ||||||
Total gross loans | 106,538 | 80,050 | 84,283 | |||
Allowance for loan losses | (607) | (705) | (698) | (653) | (674) | (842) |
Construction | ||||||
Loans Held for Investment | ||||||
Total gross loans | 215,786 | 169,748 | 124,448 | |||
Allowance for loan losses | (2,245) | (2,504) | (2,030) | (1,402) | (1,210) | (1,088) |
Land | ||||||
Loans Held for Investment | ||||||
Total gross loans | 18,341 | 18,340 | 16,339 | |||
Allowance for loan losses | (204) | (204) | (233) | (362) | (78) | (108) |
Other loans | ||||||
Loans Held for Investment | ||||||
Total gross loans | 5,822 | 5,111 | 4,811 | |||
Allowance for loan losses | $ (24) | $ (22) | $ (23) | $ (29) | $ (29) | $ (24) |
Loans Held for Investment - Nar
Loans Held for Investment - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)areagrade | Dec. 31, 2015USD ($) | |
Receivables [Abstract] | ||
Secured loans limit to one borrower | $ 128,400 | |
Unsecured loans limit to one borrower | 77,000 | |
Aggregate outstanding balance of loans to one borrower of secured credit | 40,000 | |
Total purchase credit impaired | 7,953 | |
Purchased credit impaired loans, nonaccrual status | 580,000 | |
Nonaccruing loans | $ 3,481 | $ 2,736 |
Number of areas where the entity's credit quality is maintained and credit risk managed | area | 2 | |
Number of Pass scale grades | grade | 6 |
Loans Held for Investment - Pur
Loans Held for Investment - Purchased Credit Impaired Loans (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Loans Held for Investment | |
Total purchase credit impaired | $ 7,953 |
Commercial and industrial | |
Loans Held for Investment | |
Total purchase credit impaired | 4,408 |
Commercial owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 1,622 |
Commercial non-owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 1,505 |
Other loans | |
Loans Held for Investment | |
Total purchase credit impaired | 418 |
Canyon National | |
Loans Held for Investment | |
Total purchase credit impaired | 1,483 |
Canyon National | Commercial and industrial | |
Loans Held for Investment | |
Total purchase credit impaired | 87 |
Canyon National | Commercial owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 517 |
Canyon National | Commercial non-owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 879 |
Canyon National | Other loans | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
IDPK | |
Loans Held for Investment | |
Total purchase credit impaired | 785 |
IDPK | Commercial and industrial | |
Loans Held for Investment | |
Total purchase credit impaired | 159 |
IDPK | Commercial owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
IDPK | Commercial non-owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 626 |
IDPK | Other loans | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
SCAF | |
Loans Held for Investment | |
Total purchase credit impaired | 5,685 |
SCAF | Commercial and industrial | |
Loans Held for Investment | |
Total purchase credit impaired | 4,162 |
SCAF | Commercial owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 1,105 |
SCAF | Commercial non-owner occupied | |
Loans Held for Investment | |
Total purchase credit impaired | 0 |
SCAF | Other loans | |
Loans Held for Investment | |
Total purchase credit impaired | $ 418 |
Loans Held for Investment - Acc
Loans Held for Investment - Accretable Yield Roll Forward (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Accretable yield on purchased credit impaired | |
Balance at the beginning of period | $ 2,726 |
Accretable yield at acquisition | 788 |
Accretion | (276) |
Disposals and other | (449) |
Change in accretable yield | 192 |
Balance at the end of period | 2,981 |
Canyon National | |
Accretable yield on purchased credit impaired | |
Balance at the beginning of period | 1,130 |
Accretable yield at acquisition | 0 |
Accretion | (98) |
Disposals and other | (30) |
Change in accretable yield | 0 |
Balance at the end of period | 1,002 |
IDPK | |
Accretable yield on purchased credit impaired | |
Balance at the beginning of period | 1,596 |
Accretable yield at acquisition | 0 |
Accretion | (8) |
Disposals and other | (419) |
Change in accretable yield | 192 |
Balance at the end of period | 1,361 |
SCAF | |
Accretable yield on purchased credit impaired | |
Balance at the beginning of period | 0 |
Accretable yield at acquisition | 788 |
Accretion | (170) |
Disposals and other | 0 |
Change in accretable yield | 0 |
Balance at the end of period | $ 618 |
Loans Held for Investment - C42
Loans Held for Investment - Company's Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Impaired Loans | |||||
Contractual Unpaid Principal Balance | $ 6,221 | $ 6,221 | $ 4,319 | ||
Total impaired loans | 3,481 | 3,481 | 2,784 | ||
With Specific Allowance | 1,461 | 1,461 | 1,461 | ||
Without Specific Allowance | 2,021 | 2,021 | 1,323 | ||
Specific Allowance for Impaired Loans | 731 | $ 223 | 731 | $ 223 | 731 |
Average Recorded Investment | 2,964 | 2,846 | 2,928 | 2,241 | 2,538 |
Interest Income Recognized | 51 | 46 | 99 | 70 | 123 |
Commercial and industrial | |||||
Impaired Loans | |||||
Contractual Unpaid Principal Balance | 1,519 | 1,519 | 578 | ||
Total impaired loans | 1,051 | 1,051 | 313 | ||
With Specific Allowance | 0 | 0 | 0 | ||
Without Specific Allowance | 1,051 | 1,051 | 313 | ||
Specific Allowance for Impaired Loans | 0 | 223 | 0 | 223 | 0 |
Average Recorded Investment | 350 | 74 | 329 | 4 | 90 |
Interest Income Recognized | 8 | 0 | 13 | 0 | 29 |
Franchise | |||||
Impaired Loans | |||||
Contractual Unpaid Principal Balance | 2,225 | 2,225 | 2,394 | ||
Total impaired loans | 1,461 | 1,461 | 1,630 | ||
With Specific Allowance | 1,461 | 1,461 | 1,461 | ||
Without Specific Allowance | 0 | 0 | 169 | ||
Specific Allowance for Impaired Loans | 731 | 0 | 731 | 0 | 731 |
Average Recorded Investment | 1,461 | 1,723 | 1,546 | 1,171 | 1,386 |
Interest Income Recognized | 24 | 0 | 51 | 0 | 3 |
Commercial owner occupied | |||||
Impaired Loans | |||||
Contractual Unpaid Principal Balance | 865 | 865 | 883 | ||
Total impaired loans | 486 | 486 | 536 | ||
With Specific Allowance | 0 | 0 | 0 | ||
Without Specific Allowance | 486 | 486 | 536 | ||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 494 | 373 | 506 | 378 | 415 |
Interest Income Recognized | 9 | 15 | 18 | 22 | 67 |
SBA | |||||
Impaired Loans | |||||
Contractual Unpaid Principal Balance | 1,394 | 1,394 | |||
Total impaired loans | 328 | 328 | |||
With Specific Allowance | 0 | 0 | |||
Without Specific Allowance | 329 | 329 | |||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 247 | 135 | |||
Interest Income Recognized | 4 | 4 | |||
Commercial non-owner occupied | |||||
Impaired Loans | |||||
Contractual Unpaid Principal Balance | 0 | 0 | 329 | ||
Total impaired loans | 0 | 0 | 214 | ||
With Specific Allowance | 0 | 0 | 0 | ||
Without Specific Allowance | 0 | 0 | 214 | ||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 446 | 71 | 456 | 430 |
Interest Income Recognized | 0 | 21 | 2 | 33 | 19 |
One-to-four family | |||||
Impaired Loans | |||||
Contractual Unpaid Principal Balance | 181 | 181 | 98 | ||
Total impaired loans | 137 | 137 | 70 | ||
With Specific Allowance | 0 | 0 | 0 | ||
Without Specific Allowance | 137 | 137 | 70 | ||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 393 | 222 | 322 | 228 | 204 |
Interest Income Recognized | 5 | 10 | 10 | 15 | 5 |
Land | |||||
Impaired Loans | |||||
Contractual Unpaid Principal Balance | 37 | 37 | 37 | ||
Total impaired loans | 18 | 18 | 21 | ||
With Specific Allowance | 0 | 0 | 0 | ||
Without Specific Allowance | 18 | 18 | 21 | ||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 19 | 8 | 19 | 4 | 13 |
Interest Income Recognized | $ 1 | $ 0 | $ 1 | $ 0 | $ 0 |
Loans Held for Investment - C43
Loans Held for Investment - Components of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Nonaccruing loans | $ 3,481 | $ 2,736 |
Accruing loans | 0 | 48 |
Total impaired loans | $ 3,481 | $ 2,784 |
Loans Held for Investment - Int
Loans Held for Investment - Internal Risk Grading System (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Credit Risk Grades | |||
Totals | $ 2,927,554 | $ 2,262,683 | $ 2,118,323 |
Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 508,141 | 309,741 | 284,873 |
Franchise | |||
Credit Risk Grades | |||
Totals | 403,855 | 328,925 | 257,582 |
Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 443,060 | 294,726 | 294,545 |
SBA | |||
Credit Risk Grades | |||
Totals | 86,076 | 62,256 | 50,306 |
Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 0 | 143,200 | 198,113 |
Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 526,362 | 421,583 | 402,786 |
Multi-family | |||
Credit Risk Grades | |||
Totals | 613,573 | 429,003 | 400,237 |
One-to-four family | |||
Credit Risk Grades | |||
Totals | 106,538 | 80,050 | 84,283 |
Construction | |||
Credit Risk Grades | |||
Totals | 215,786 | 169,748 | 124,448 |
Land | |||
Credit Risk Grades | |||
Totals | 18,341 | 18,340 | 16,339 |
Other loans | |||
Credit Risk Grades | |||
Totals | 5,822 | 5,111 | $ 4,811 |
Pass | |||
Credit Risk Grades | |||
Totals | 2,897,622 | 2,242,242 | |
Pass | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 498,556 | 306,513 | |
Pass | Franchise | |||
Credit Risk Grades | |||
Totals | 402,394 | 327,295 | |
Pass | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 432,542 | 286,270 | |
Pass | SBA | |||
Credit Risk Grades | |||
Totals | 85,747 | 62,256 | |
Pass | Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 143,200 | ||
Pass | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 522,108 | 418,917 | |
Pass | Multi-family | |||
Credit Risk Grades | |||
Totals | 611,143 | 425,616 | |
Pass | One-to-four family | |||
Credit Risk Grades | |||
Totals | 105,619 | 78,997 | |
Pass | Construction | |||
Credit Risk Grades | |||
Totals | 215,786 | 169,748 | |
Pass | Land | |||
Credit Risk Grades | |||
Totals | 18,323 | 18,319 | |
Pass | Other loans | |||
Credit Risk Grades | |||
Totals | 5,404 | 5,111 | |
Special Mention | |||
Credit Risk Grades | |||
Totals | 5,107 | 700 | |
Special Mention | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 3,694 | 73 | |
Special Mention | Franchise | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Special Mention | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 1,413 | 627 | |
Special Mention | SBA | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Special Mention | Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 0 | ||
Special Mention | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Special Mention | Multi-family | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Special Mention | One-to-four family | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Special Mention | Construction | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Special Mention | Land | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Special Mention | Other loans | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Substandard | |||
Credit Risk Grades | |||
Totals | 23,364 | 18,280 | |
Substandard | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 5,891 | 3,155 | |
Substandard | Franchise | |||
Credit Risk Grades | |||
Totals | 0 | 169 | |
Substandard | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 9,105 | 7,829 | |
Substandard | SBA | |||
Credit Risk Grades | |||
Totals | 329 | 0 | |
Substandard | Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 0 | ||
Substandard | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 4,254 | 2,666 | |
Substandard | Multi-family | |||
Credit Risk Grades | |||
Totals | 2,430 | 3,387 | |
Substandard | One-to-four family | |||
Credit Risk Grades | |||
Totals | 919 | 1,053 | |
Substandard | Construction | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Substandard | Land | |||
Credit Risk Grades | |||
Totals | 18 | 21 | |
Substandard | Other loans | |||
Credit Risk Grades | |||
Totals | 418 | 0 | |
Doubtful | |||
Credit Risk Grades | |||
Totals | 1,461 | 1,461 | |
Doubtful | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | Franchise | |||
Credit Risk Grades | |||
Totals | 1,461 | 1,461 | |
Doubtful | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | SBA | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | Warehouse facilities | |||
Credit Risk Grades | |||
Totals | 0 | ||
Doubtful | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | Multi-family | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | One-to-four family | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | Construction | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | Land | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | Other loans | |||
Credit Risk Grades | |||
Totals | $ 0 | $ 0 |
Loans Held for Investment - Del
Loans Held for Investment - Delinquencies (Details 6) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Other information concerning the credit quality | |||
Totals | $ 2,927,554 | $ 2,262,683 | $ 2,118,323 |
Non-Accruing | 4,062 | 3,970 | |
Commercial and industrial | |||
Other information concerning the credit quality | |||
Totals | 508,141 | 309,741 | 284,873 |
Non-Accruing | 1,220 | 463 | |
Franchise | |||
Other information concerning the credit quality | |||
Totals | 403,855 | 328,925 | 257,582 |
Non-Accruing | 1,461 | 1,630 | |
Commercial owner occupied | |||
Other information concerning the credit quality | |||
Totals | 443,060 | 294,726 | 294,545 |
Non-Accruing | 486 | 536 | |
SBA | |||
Other information concerning the credit quality | |||
Totals | 86,076 | 62,256 | 50,306 |
Non-Accruing | 329 | 0 | |
Warehouse facilities | |||
Other information concerning the credit quality | |||
Totals | 0 | 143,200 | 198,113 |
Non-Accruing | 0 | ||
Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Totals | 526,362 | 421,583 | 402,786 |
Non-Accruing | 411 | 1,164 | |
Multi-family | |||
Other information concerning the credit quality | |||
Totals | 613,573 | 429,003 | 400,237 |
Non-Accruing | 0 | 0 | |
One-to-four family | |||
Other information concerning the credit quality | |||
Totals | 106,538 | 80,050 | 84,283 |
Non-Accruing | 137 | 155 | |
Construction | |||
Other information concerning the credit quality | |||
Totals | 215,786 | 169,748 | 124,448 |
Non-Accruing | 0 | 0 | |
Land | |||
Other information concerning the credit quality | |||
Totals | 18,341 | 18,340 | 16,339 |
Non-Accruing | 18 | 21 | |
Other loans | |||
Other information concerning the credit quality | |||
Totals | 5,822 | 5,111 | $ 4,811 |
Non-Accruing | 0 | 1 | |
Current | |||
Other information concerning the credit quality | |||
Current | 2,922,126 | 2,260,051 | |
Current | Commercial and industrial | |||
Other information concerning the credit quality | |||
Current | 506,965 | 309,464 | |
Current | Franchise | |||
Other information concerning the credit quality | |||
Current | 402,394 | 327,295 | |
Current | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Current | 443,060 | 294,371 | |
Current | SBA | |||
Other information concerning the credit quality | |||
Current | 85,830 | 62,256 | |
Current | Warehouse facilities | |||
Other information concerning the credit quality | |||
Current | 143,200 | ||
Current | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Current | 523,875 | 421,369 | |
Current | Multi-family | |||
Other information concerning the credit quality | |||
Current | 613,573 | 429,003 | |
Current | One-to-four family | |||
Other information concerning the credit quality | |||
Current | 106,498 | 79,915 | |
Current | Construction | |||
Other information concerning the credit quality | |||
Current | 215,786 | 169,748 | |
Current | Land | |||
Other information concerning the credit quality | |||
Current | 18,323 | 18,319 | |
Current | Other loans | |||
Other information concerning the credit quality | |||
Current | 5,822 | 5,111 | |
30-59 | |||
Other information concerning the credit quality | |||
Days Past Due | 1,144 | 323 | |
30-59 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 1,144 | 20 | |
30-59 | Franchise | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | ||
30-59 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 214 | |
30-59 | Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 89 | |
30-59 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | |||
Other information concerning the credit quality | |||
Days Past Due | 2,487 | 355 | |
60-89 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Franchise | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 355 | |
60-89 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | ||
60-89 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 2,487 | 0 | |
60-89 | Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | |||
Other information concerning the credit quality | |||
Days Past Due | 1,797 | 1,954 | |
90 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 32 | 257 | |
90 | Franchise | |||
Other information concerning the credit quality | |||
Days Past Due | 1,461 | 1,630 | |
90 | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 246 | 0 | |
90 | Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | ||
90 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 40 | 46 | |
90 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 18 | 21 | |
90 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | $ 0 | $ 0 |
Allowance for Loan Losses (Deta
Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | $ 18,455 | $ 17,317 | $ 13,646 | $ 17,317 | $ 12,200 | |
Charge-offs | (1,220) | (393) | (1,220) | (789) | ||
Recoveries | 131 | 14 | 149 | 26 | ||
Provisions for (reduction in) loan losses | 1,589 | 1,120 | 1,833 | 2,709 | 3,663 | |
Balance, at the end of the period | 18,955 | 18,455 | 15,100 | 18,955 | 15,100 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 731 | 223 | 731 | 223 | $ 731 | |
Amount of allowance attributed to: General portfolio allocation | 18,224 | 14,877 | 18,224 | 14,877 | ||
Loans individually evaluated for impairment | 3,481 | 2,726 | $ 3,481 | $ 2,726 | ||
Specific reserves to total loans individually evaluated for impairment | 21.00% | 8.18% | ||||
Loans collectively evaluated for impairment | 2,924,073 | 2,115,597 | $ 2,924,073 | $ 2,115,597 | ||
General reserves to total loans collectively evaluated for impairment | 0.62% | 0.70% | ||||
Total gross loans | 2,927,554 | 2,118,323 | $ 2,927,554 | $ 2,118,323 | 2,262,683 | |
Total allowance to gross loans | 0.65% | 0.71% | ||||
Commercial and industrial | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 3,023 | 3,449 | 3,443 | $ 3,449 | $ 2,646 | |
Charge-offs | (710) | 0 | (710) | (24) | ||
Recoveries | 40 | 12 | 54 | 24 | ||
Provisions for (reduction in) loan losses | 2,132 | 271 | 1,692 | 1,080 | ||
Balance, at the end of the period | 4,485 | 3,023 | 3,726 | 4,485 | 3,726 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 223 | 0 | 223 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 4,485 | 3,503 | 4,485 | 3,503 | ||
Loans individually evaluated for impairment | 1,051 | 223 | $ 1,051 | $ 223 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 100.00% | ||||
Loans collectively evaluated for impairment | 507,090 | 284,650 | $ 507,090 | $ 284,650 | ||
General reserves to total loans collectively evaluated for impairment | 0.88% | 1.23% | ||||
Total gross loans | 508,141 | 284,873 | $ 508,141 | $ 284,873 | 309,741 | |
Total allowance to gross loans | 0.88% | 1.31% | ||||
Franchise | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 3,568 | 3,124 | 1,740 | $ 3,124 | $ 1,554 | |
Charge-offs | (169) | (393) | (169) | (765) | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions for (reduction in) loan losses | (147) | 477 | 297 | 1,035 | ||
Balance, at the end of the period | 3,252 | 3,568 | 1,824 | 3,252 | 1,824 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 731 | 0 | 731 | 0 | 731 | |
Amount of allowance attributed to: General portfolio allocation | 2,521 | 1,824 | 2,521 | 1,824 | ||
Loans individually evaluated for impairment | 1,461 | 1,461 | $ 1,461 | $ 1,461 | ||
Specific reserves to total loans individually evaluated for impairment | 50.03% | 0.00% | ||||
Loans collectively evaluated for impairment | 402,394 | 256,121 | $ 402,394 | $ 256,121 | ||
General reserves to total loans collectively evaluated for impairment | 0.63% | 0.71% | ||||
Total gross loans | 403,855 | 257,582 | $ 403,855 | $ 257,582 | 328,925 | |
Total allowance to gross loans | 0.81% | 0.71% | ||||
Commercial owner occupied | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 1,965 | 1,870 | 1,602 | $ 1,870 | $ 1,757 | |
Charge-offs | (329) | 0 | (329) | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions for (reduction in) loan losses | 505 | 246 | 600 | 91 | ||
Balance, at the end of the period | 2,141 | 1,965 | 1,848 | 2,141 | 1,848 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 2,141 | 1,848 | 2,141 | 1,848 | ||
Loans individually evaluated for impairment | 486 | 370 | $ 486 | $ 370 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 442,574 | 294,175 | $ 442,574 | $ 294,175 | ||
General reserves to total loans collectively evaluated for impairment | 0.48% | 0.63% | ||||
Total gross loans | 443,060 | 294,545 | $ 443,060 | $ 294,545 | 294,726 | |
Total allowance to gross loans | 0.48% | 0.63% | ||||
SBA | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 1,628 | 1,500 | 547 | $ 1,500 | $ 568 | |
Charge-offs | (5) | 0 | (5) | 0 | ||
Recoveries | 82 | 1 | 85 | 1 | ||
Provisions for (reduction in) loan losses | (146) | 338 | (21) | 317 | ||
Balance, at the end of the period | 1,559 | 1,628 | 886 | 1,559 | 886 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 1,559 | 886 | 1,559 | 886 | ||
Loans individually evaluated for impairment | 328 | 0 | $ 328 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 85,748 | 50,306 | $ 85,748 | $ 50,306 | ||
General reserves to total loans collectively evaluated for impairment | 1.82% | 1.76% | ||||
Total gross loans | 86,076 | 50,306 | $ 86,076 | $ 50,306 | 62,256 | |
Total allowance to gross loans | 1.81% | 1.76% | ||||
Warehouse facilities | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 7 | 759 | 889 | $ 759 | $ 546 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions for (reduction in) loan losses | (7) | (14) | (759) | 329 | ||
Balance, at the end of the period | 0 | 7 | 875 | 0 | 875 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 0 | 875 | 0 | 875 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 0 | 198,113 | $ 0 | $ 198,113 | ||
General reserves to total loans collectively evaluated for impairment | 0.00% | 0.44% | ||||
Total gross loans | 0 | 198,113 | $ 0 | $ 198,113 | 143,200 | |
Total allowance to gross loans | 0.00% | 0.44% | ||||
Commercial non-owner occupied | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 1,897 | 2,048 | 2,131 | $ 2,048 | $ 2,007 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions for (reduction in) loan losses | 207 | (168) | 56 | (44) | ||
Balance, at the end of the period | 2,104 | 1,897 | 1,963 | 2,104 | 1,963 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 2,104 | 1,963 | 2,104 | 1,963 | ||
Loans individually evaluated for impairment | 0 | 443 | $ 0 | $ 443 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 526,362 | 402,343 | $ 526,362 | $ 402,343 | ||
General reserves to total loans collectively evaluated for impairment | 0.40% | 0.49% | ||||
Total gross loans | 526,362 | 402,786 | $ 526,362 | $ 402,786 | 421,583 | |
Total allowance to gross loans | 0.40% | 0.49% | ||||
Multi-family | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 2,932 | 1,583 | 1,303 | $ 1,583 | $ 1,060 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions for (reduction in) loan losses | (598) | 229 | 751 | 472 | ||
Balance, at the end of the period | 2,334 | 2,932 | 1,532 | 2,334 | 1,532 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 2,334 | 1,532 | 2,334 | 1,532 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 613,573 | 400,237 | $ 613,573 | $ 400,237 | ||
General reserves to total loans collectively evaluated for impairment | 0.38% | 0.38% | ||||
Total gross loans | 613,573 | 400,237 | $ 613,573 | $ 400,237 | 429,003 | |
Total allowance to gross loans | 0.38% | 0.38% | ||||
One-to-four family | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 705 | 698 | 674 | $ 698 | $ 842 | |
Charge-offs | (7) | 0 | (7) | 0 | ||
Recoveries | 5 | 0 | 6 | 0 | ||
Provisions for (reduction in) loan losses | (96) | (21) | (90) | (189) | ||
Balance, at the end of the period | 607 | 705 | 653 | 607 | 653 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 607 | 653 | 607 | 653 | ||
Loans individually evaluated for impairment | 137 | 206 | $ 137 | $ 206 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 106,401 | 84,077 | $ 106,401 | $ 84,077 | ||
General reserves to total loans collectively evaluated for impairment | 0.57% | 0.78% | ||||
Total gross loans | 106,538 | 84,283 | $ 106,538 | $ 84,283 | 80,050 | |
Total allowance to gross loans | 0.57% | 0.77% | ||||
Construction | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 2,504 | 2,030 | 1,210 | $ 2,030 | $ 1,088 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions for (reduction in) loan losses | (259) | 192 | 215 | 314 | ||
Balance, at the end of the period | 2,245 | 2,504 | 1,402 | 2,245 | 1,402 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 2,245 | 1,402 | 2,245 | 1,402 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 215,786 | 124,448 | $ 215,786 | $ 124,448 | ||
General reserves to total loans collectively evaluated for impairment | 1.04% | 1.13% | ||||
Total gross loans | 215,786 | 124,448 | $ 215,786 | $ 124,448 | 169,748 | |
Total allowance to gross loans | 1.04% | 1.13% | ||||
Land | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 204 | 233 | 78 | $ 233 | $ 108 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions for (reduction in) loan losses | 0 | 284 | (29) | 254 | ||
Balance, at the end of the period | 204 | 204 | 362 | 204 | 362 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 204 | 362 | 204 | 362 | ||
Loans individually evaluated for impairment | 18 | 23 | $ 18 | $ 23 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 18,323 | 16,316 | $ 18,323 | $ 16,316 | ||
General reserves to total loans collectively evaluated for impairment | 1.11% | 2.22% | ||||
Total gross loans | 18,341 | 16,339 | $ 18,341 | $ 16,339 | 18,340 | |
Total allowance to gross loans | 1.11% | 2.22% | ||||
Other loans | ||||||
Allocation of allowance as well as the activity in allowance | ||||||
Balance, at the beginning of the period | 22 | 23 | 29 | $ 23 | $ 24 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 4 | 1 | 4 | 1 | ||
Provisions for (reduction in) loan losses | (2) | (1) | (3) | 4 | ||
Balance, at the end of the period | 24 | $ 22 | 29 | 24 | 29 | |
Other disclosures | ||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 24 | 29 | 24 | 29 | ||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | ||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | ||||
Loans collectively evaluated for impairment | 5,822 | 4,811 | $ 5,822 | $ 4,811 | ||
General reserves to total loans collectively evaluated for impairment | 0.41% | 0.60% | ||||
Total gross loans | $ 5,822 | $ 4,811 | $ 5,822 | $ 4,811 | $ 5,111 | |
Total allowance to gross loans | 0.41% | 0.60% | ||||
Owner Occupied Commercial Real Estate Loans, Commercial and Industrial Loans and SBA Loans | ||||||
Allowance for Loan Losses | ||||||
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 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Aug. 31, 2014 | Mar. 31, 2004 | Jun. 30, 2016 | |
PPBI Trust I | |||
Subordinated Debentures | |||
Floating Rate Trust Preferred Securities issue amount | $ 10,000,000 | ||
Notes | |||
Subordinated Debentures | |||
Debt issued | $ 60,000,000 | ||
Fixed interest rate (as a percent) | 5.75% | ||
Contribution of net proceeds from the Private Placement to the Bank to support general corporate purposes | $ 50,000,000 | ||
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) | 3.38% | ||
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, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |||||
Stock options excluded (in shares) | 154,251 | 108,407 | 464,647 | 131,703 | 429,625 |
Net Income | |||||
Basic income available to common stockholders | $ 10,369 | $ 8,554 | $ 7,825 | $ 18,923 | $ 9,613 |
Diluted income available to common stockholders plus assumed conversions | $ 10,369 | $ 8,554 | $ 7,825 | $ 18,923 | $ 9,613 |
Shares | |||||
Basic income available to common stockholders (in shares) | 27,378,930 | 25,555,654 | 21,493,641 | 26,467,292 | 20,796,655 |
Effect of dilutive stock options and warrants (in shares) | 466,560 | 396,530 | 335,235 | 434,335 | 329,887 |
Diluted income available to common stockholders plus assumed conversions (in shares) | 27,845,490 | 25,952,184 | 21,828,876 | 26,901,627 | 21,126,542 |
Per Share Amount | |||||
Basic income available to common stockholders (in dollars per share) | $ 0.38 | $ 0.33 | $ 0.36 | $ 0.72 | $ 0.46 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $ 0.37 | $ 0.33 | $ 0.36 | $ 0.70 | $ 0.46 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments - Fair Value Estimates (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Investments held to maturity | $ 9,390 | $ 9,572 |
Investment securities available for sale, at fair value | 245,471 | 280,273 |
Accrued interest receivable | 12,143 | 9,315 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 185,299 | 78,417 |
Investments held to maturity | 0 | 0 |
Investment securities available for sale, at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 12,143 | 9,315 |
Liabilities: | ||
Deposit accounts | 2,351,184 | 1,674,148 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 305 | 206 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investments held to maturity | 9,390 | 9,572 |
Investment securities available for sale, at fair value | 245,471 | 280,273 |
Loans held for sale | 11,128 | 9,507 |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposit accounts | 620,675 | 521,291 |
FHLB advances | 75,016 | 148,036 |
Other borrowings | 45,878 | 49,156 |
Subordinated debentures | 68,425 | 68,675 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investments held to maturity | 0 | 0 |
Investment securities available for sale, at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held for investment, net | 2,918,457 | 2,244,936 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposit accounts | 0 | 0 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 185,299 | 78,417 |
Investments held to maturity | 9,292 | 9,642 |
Investment securities available for sale, at fair value | 245,471 | 280,273 |
FHLB, FRB, and other stock | 26,984 | 22,292 |
Loans held for sale | 10,116 | 8,565 |
Loans held for investment, net | 2,901,664 | 2,236,998 |
Accrued interest receivable | 12,143 | 9,315 |
Liabilities: | ||
Deposit accounts | 2,931,001 | 2,195,123 |
FHLB advances | 75,000 | 148,000 |
Other borrowings | 45,252 | 48,125 |
Subordinated debentures | 70,310 | 70,310 |
Accrued interest payable | 305 | 206 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 185,299 | 78,417 |
Investments held to maturity | 9,390 | 9,572 |
Investment securities available for sale, at fair value | 245,471 | 280,273 |
Loans held for sale | 9,507 | |
Loans held for investment, net | 2,918,457 | 2,244,936 |
Accrued interest receivable | 12,143 | 9,315 |
Liabilities: | ||
Deposit accounts | 2,971,859 | 2,195,439 |
FHLB advances | 75,016 | 148,036 |
Other borrowings | 45,878 | 49,156 |
Subordinated debentures | 68,425 | 68,675 |
Accrued interest payable | 305 | 206 |
Interest bearing time deposits with financial institutions | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 3,944 | 1,972 |
Interest bearing time deposits with financial institutions | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing time deposits with financial institutions | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing time deposits with financial institutions | Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 3,944 | 1,972 |
Interest bearing time deposits with financial institutions | Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | $ 3,944 | $ 1,972 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments - Hierarchy Table - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Total | ||
Investment securities available for sale, at fair value | $ 245,471 | $ 280,273 |
Municipal bonds | ||
Total | ||
Investment securities available for sale, at fair value | 118,799 | 130,245 |
Collateralized mortgage obligation | ||
Total | ||
Investment securities available for sale, at fair value | 22,844 | 24,543 |
Mortgage-backed securities | ||
Total | ||
Investment securities available for sale, at fair value | 103,828 | 125,485 |
Level 1 | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Level 2 | ||
Total | ||
Investment securities available for sale, at fair value | 245,471 | 280,273 |
Level 3 | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Recurring basis | ||
Total | ||
Investment securities available for sale, at fair value | 245,471 | 280,273 |
Recurring basis | Municipal bonds | ||
Total | ||
Investment securities available for sale, at fair value | 118,799 | 130,245 |
Recurring basis | Collateralized mortgage obligation | ||
Total | ||
Investment securities available for sale, at fair value | 22,844 | 24,543 |
Recurring basis | Mortgage-backed securities | ||
Total | ||
Investment securities available for sale, at fair value | 103,828 | 125,485 |
Recurring basis | Level 1 | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Municipal bonds | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Collateralized mortgage obligation | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Mortgage-backed securities | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Recurring basis | Level 2 | ||
Total | ||
Investment securities available for sale, at fair value | 245,471 | 280,273 |
Recurring basis | Level 2 | Municipal bonds | ||
Total | ||
Investment securities available for sale, at fair value | 118,799 | 130,245 |
Recurring basis | Level 2 | Collateralized mortgage obligation | ||
Total | ||
Investment securities available for sale, at fair value | 22,844 | 24,543 |
Recurring basis | Level 2 | Mortgage-backed securities | ||
Total | ||
Investment securities available for sale, at fair value | 103,828 | 125,485 |
Recurring basis | Level 3 | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Municipal bonds | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Collateralized mortgage obligation | ||
Total | ||
Investment securities available for sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Mortgage-backed securities | ||
Total | ||
Investment securities available for sale, at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr51
Fair Value of Financial Instruments - Hierarchy Table - Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures | ||
Other real estate owned | $ 711 | $ 1,161 |
Non-recurring basis | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 1,998 | 1,322 |
Other real estate owned | 711 | 1,161 |
Commercial and industrial | 2,709 | 2,483 |
Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Commercial and industrial | 0 | 0 |
Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Commercial and industrial | 0 | 0 |
Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 1,998 | 1,322 |
Other real estate owned | 711 | 1,161 |
Commercial and industrial | 2,709 | 2,483 |
Commercial and industrial | Non-recurring basis | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 1,028 | 313 |
Commercial and industrial | Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
Commercial and industrial | Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
Commercial and industrial | Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 1,028 | 313 |
Franchise | Non-recurring basis | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 168 | |
Franchise | Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | |
Franchise | Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | |
Franchise | Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 168 | |
Commercial owner occupied | Non-recurring basis | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 486 | 536 |
Commercial owner occupied | Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
Commercial owner occupied | Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
Commercial owner occupied | Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 486 | 536 |
Commercial non-owner occupied | Non-recurring basis | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 214 | |
Commercial non-owner occupied | Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | |
Commercial non-owner occupied | Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | |
Commercial non-owner occupied | Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 214 | |
SBA | Non-recurring basis | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 329 | |
SBA | Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | |
SBA | Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | |
SBA | Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 329 | |
One-to-four family | Non-recurring basis | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 137 | 70 |
One-to-four family | Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
One-to-four family | Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
One-to-four family | Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 137 | 70 |
Land | Non-recurring basis | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 18 | 21 |
Land | Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
Land | Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 0 | 0 |
Land | Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent impaired loans | 18 | 21 |
Other real estate owned land | Non-recurring basis | ||
Fair Value Disclosures | ||
Other real estate owned | 711 | 1,161 |
Other real estate owned land | Non-recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Other real estate owned | 0 | 0 |
Other real estate owned land | Non-recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Other real estate owned | 0 | 0 |
Other real estate owned land | Non-recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Other real estate owned | $ 711 | $ 1,161 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments - Quantitative Data (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Other real estate owned | $ 711 | $ 1,161 |
Non-recurring basis | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 1,998 | 1,322 |
Other real estate owned | 711 | 1,161 |
Non-recurring basis | Commercial and industrial | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 1,028 | 313 |
Non-recurring basis | Franchise | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 168 | |
Non-recurring basis | Commercial owner occupied | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 486 | 536 |
Non-recurring basis | SBA | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 329 | |
Non-recurring basis | Commercial non-owner occupied | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 214 | |
Non-recurring basis | One-to-four family | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 137 | 70 |
Non-recurring basis | Land | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 18 | 21 |
Non-recurring basis | Other real estate owned land | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Other real estate owned | 711 | 1,161 |
Non-recurring basis | Level 3 | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | 1,998 | 1,322 |
Other real estate owned | 711 | 1,161 |
Non-recurring basis | Level 3 | Commercial and industrial | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | $ 1,028 | $ 313 |
Non-recurring basis | Level 3 | Commercial and industrial | Collateral analysis | ||
Unobservable Inputs | ||
Rate (as a percent) | 6.00% | 7.50% |
Maturity (years) | 1 year | 6 years |
Non-recurring basis | Level 3 | Commercial and industrial | Collateral analysis | Minimum | ||
Unobservable Inputs | ||
Unobservable Inputs (as a percent) | 0.00% | 0.00% |
Non-recurring basis | Level 3 | Commercial and industrial | Collateral analysis | Maximum | ||
Unobservable Inputs | ||
Unobservable Inputs (as a percent) | 10.00% | 10.00% |
Non-recurring basis | Level 3 | Franchise | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | $ 168 | |
Non-recurring basis | Level 3 | Franchise | Collateral analysis | Minimum | ||
Unobservable Inputs | ||
Rate (as a percent) | 5.70% | |
Maturity (years) | 7 years | |
Unobservable Inputs (as a percent) | 0.00% | |
Non-recurring basis | Level 3 | Franchise | Collateral analysis | Maximum | ||
Unobservable Inputs | ||
Rate (as a percent) | 6.70% | |
Maturity (years) | 8 years | |
Unobservable Inputs (as a percent) | 10.00% | |
Non-recurring basis | Level 3 | Commercial owner occupied | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | $ 486 | $ 536 |
Non-recurring basis | Level 3 | Commercial owner occupied | Collateral analysis | ||
Unobservable Inputs | ||
Rate (as a percent) | 7.75% | |
Maturity (years) | 10 years | 7 years |
Non-recurring basis | Level 3 | Commercial owner occupied | Collateral analysis | Minimum | ||
Unobservable Inputs | ||
Rate (as a percent) | 6.75% | |
Unobservable Inputs (as a percent) | 0.00% | 0.00% |
Non-recurring basis | Level 3 | Commercial owner occupied | Collateral analysis | Maximum | ||
Unobservable Inputs | ||
Rate (as a percent) | 7.75% | |
Unobservable Inputs (as a percent) | 10.00% | 10.00% |
Non-recurring basis | Level 3 | SBA | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | $ 329 | |
Non-recurring basis | Level 3 | SBA | Collateral analysis | Minimum | ||
Unobservable Inputs | ||
Rate (as a percent) | 6.00% | |
Maturity (years) | 15 years | |
Unobservable Inputs (as a percent) | 0.00% | |
Non-recurring basis | Level 3 | SBA | Collateral analysis | Maximum | ||
Unobservable Inputs | ||
Rate (as a percent) | 6.25% | |
Maturity (years) | 23 years | |
Unobservable Inputs (as a percent) | 10.00% | |
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 | $ 214 | |
Non-recurring basis | Level 3 | Commercial non-owner occupied | Collateral analysis | ||
Unobservable Inputs | ||
Rate (as a percent) | 6.75% | |
Non-recurring basis | Level 3 | Commercial non-owner occupied | Collateral analysis | Minimum | ||
Unobservable Inputs | ||
Maturity (years) | 2 years | |
Unobservable Inputs (as a percent) | 0.00% | |
Non-recurring basis | Level 3 | Commercial non-owner occupied | Collateral analysis | Maximum | ||
Unobservable Inputs | ||
Maturity (years) | 12 years | |
Unobservable Inputs (as a percent) | 15.00% | |
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 | $ 137 | $ 70 |
Non-recurring basis | Level 3 | One-to-four family | Collateral analysis | Minimum | ||
Unobservable Inputs | ||
Rate (as a percent) | 9.00% | 9.00% |
Maturity (years) | 4 years | 5 years |
Unobservable Inputs (as a percent) | 0.00% | 0.00% |
Non-recurring basis | Level 3 | One-to-four family | Collateral analysis | Maximum | ||
Unobservable Inputs | ||
Rate (as a percent) | 15.00% | 15.00% |
Maturity (years) | 14 years | 16 years |
Unobservable Inputs (as a percent) | 10.00% | 10.00% |
Non-recurring basis | Level 3 | Land | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Collateral dependent impaired loans | $ 18 | $ 21 |
Non-recurring basis | Level 3 | Land | Collateral analysis | ||
Unobservable Inputs | ||
Rate (as a percent) | 13.00% | 13.00% |
Maturity (years) | 15 years | 15 years |
Non-recurring basis | Level 3 | Land | Collateral analysis | Minimum | ||
Unobservable Inputs | ||
Unobservable Inputs (as a percent) | 0.00% | 0.00% |
Non-recurring basis | Level 3 | Land | Collateral analysis | Maximum | ||
Unobservable Inputs | ||
Unobservable Inputs (as a percent) | 10.00% | 10.00% |
Non-recurring basis | Level 3 | Other real estate owned land | ||
Quantitative information about level 3 of fair value measurements for financial instruments | ||
Other real estate owned | $ 711 | $ 1,161 |
Non-recurring basis | Level 3 | Other real estate owned land | Collateral analysis | ||
Unobservable Inputs | ||
Rate (as a percent) | 0.00% | 0.00% |
Maturity (years) | 0 years | 0 years |
Non-recurring basis | Level 3 | Other real estate owned land | Collateral analysis | Minimum | ||
Unobservable Inputs | ||
Unobservable Inputs (as a percent) | 0.00% | 0.00% |
Non-recurring basis | Level 3 | Other real estate owned land | Collateral analysis | Maximum | ||
Unobservable Inputs | ||
Unobservable Inputs (as a percent) | 10.00% | 10.00% |