Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 08, 2017 | |
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 | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,918,907 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 13,425 | $ 14,706 |
Interest-bearing deposits with financial institutions | 87,088 | 142,151 |
Cash and cash equivalents | 100,513 | 156,857 |
Interest-bearing time deposits with financial institutions | 3,944 | 3,944 |
Investments held-to-maturity, at amortized cost (fair value of $8,147 and $8,461 as of March 31, 2017 and December 31, 2016, respectively) | 8,272 | 8,565 |
Investment securities available-for-sale, at fair value | 435,408 | 380,963 |
FHLB, FRB and other stock, at cost | 37,811 | 37,304 |
Loans held for sale, at lower of cost or fair value | 11,090 | 7,711 |
Loans held for investment | 3,385,697 | 3,241,613 |
Allowance for loan losses | (23,075) | (21,296) |
Loans held for investment, net | 3,362,622 | 3,220,317 |
Accrued interest receivable | 13,366 | 13,145 |
Other real estate owned | 460 | 460 |
Premises and equipment | 11,799 | 12,014 |
Deferred income taxes, net | 12,744 | 16,807 |
Bank owned life insurance | 40,696 | 40,409 |
Intangible assets | 8,942 | 9,451 |
Goodwill | 102,490 | 102,490 |
Other assets | 24,271 | 25,874 |
Total Assets | 4,174,428 | 4,036,311 |
Deposit accounts: | ||
Noninterest-bearing checking | 1,232,578 | 1,185,768 |
Interest-bearing: | ||
Checking | 191,399 | 182,893 |
Money market/savings | 1,273,917 | 1,202,361 |
Retail certificates of deposit | 381,738 | 375,203 |
Wholesale/brokered certificates of deposit | 217,441 | 199,356 |
Total interest-bearing | 2,064,495 | 1,959,813 |
Total deposits | 3,297,073 | 3,145,581 |
FHLB advances and other borrowings | 311,363 | 327,971 |
Subordinated debentures | 69,413 | 69,383 |
Accrued expenses and other liabilities | 25,554 | 33,636 |
Total Liabilities | 3,703,403 | 3,576,571 |
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; 27,908,816 shares at March 31, 2017 and 27,798,283 shares at December 31, 2016 | 275 | 274 |
Additional paid-in capital | 345,888 | 345,138 |
Retained earnings | 126,570 | 117,049 |
Accumulated other comprehensive loss, net of tax | (1,708) | (2,721) |
Total Stockholders' Equity | 471,025 | 459,740 |
Total Liabilities and Stockholders' Equity | $ 4,174,428 | $ 4,036,311 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Estimated Fair Value | $ 8,147 | $ 8,461 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 27,908,816 | 27,798,283 |
Common stock, shares outstanding (in shares) | 27,908,816 | 27,798,283 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
INTEREST INCOME | |||
Loans | $ 42,436 | $ 43,006 | $ 35,407 |
Investment securities and other interest-earning assets | 2,991 | 2,791 | 2,098 |
Total interest income | 45,427 | 45,797 | 37,505 |
INTEREST EXPENSE | |||
Deposits | 2,135 | 2,176 | 2,069 |
FHLB advances and other borrowings | 604 | 332 | 325 |
Subordinated debentures | 985 | 985 | 910 |
Total interest expense | 3,724 | 3,493 | 3,304 |
Net interest income before provision for loan losses | 41,703 | 42,304 | 34,201 |
Provision for loan losses | 2,502 | 2,054 | 1,120 |
Net interest income after provision for loan losses | 39,201 | 40,250 | 33,081 |
NONINTEREST INCOME | |||
Loan servicing fees | 222 | 263 | 225 |
Deposit fees | 847 | 934 | 828 |
Net gain from sales of loans | 2,811 | 2,387 | 1,906 |
Net gain from sales of investment securities | 0 | 0 | 753 |
Other-than-temporary-impairment recovery/(loss) on securities | 1 | 0 | (207) |
Other income | 802 | 734 | 1,343 |
Total noninterest income | 4,683 | 4,318 | 4,848 |
NONINTEREST EXPENSE | |||
Compensation and benefits | 14,887 | 13,815 | 11,739 |
Premises and occupancy | 2,453 | 2,531 | 2,283 |
Data processing and communications | 1,187 | 1,240 | 911 |
Other real estate owned operations, net | 12 | 369 | 8 |
FDIC insurance premiums | 455 | 320 | 382 |
Legal, audit and professional expense | 857 | 830 | 865 |
Marketing expense | 818 | 865 | 630 |
Office and postage expense | 433 | 441 | 481 |
Loan expense | 468 | 714 | 403 |
Deposit expense | 1,444 | 1,388 | 1,005 |
Merger-related expense | 4,946 | 772 | 3,119 |
CDI amortization | 511 | 525 | 344 |
Other expense | 1,276 | 1,567 | 1,463 |
Total noninterest expense | 29,747 | 25,377 | 23,633 |
Net income before income taxes | 14,137 | 19,191 | 14,296 |
Income tax | 4,616 | 7,238 | 5,742 |
Net Income | $ 9,521 | $ 11,953 | $ 8,554 |
EARNINGS PER SHARE | |||
Basic (in dollars per share) | $ 0.35 | $ 0.44 | $ 0.33 |
Diluted (in dollars per share) | $ 0.34 | $ 0.43 | $ 0.33 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||
Basic (in shares) | 27,528,940 | 27,394,737 | 25,555,654 |
Diluted (in shares) | 28,197,220 | 28,027,479 | 25,952,184 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9,521 | $ 11,953 | $ 8,554 | |
Other comprehensive income, net of tax: | ||||
Unrealized holding gains (losses) on securities arising during the period, net of income taxes (benefits) | [1] | 1,013 | (4,084) | 1,565 |
Reclassification adjustment for net gain on sale of securities included in net income, net of income taxes | [2] | 0 | 0 | (436) |
Net unrealized gain on securities, net of income taxes | 1,013 | (4,084) | 1,129 | |
Comprehensive income | $ 10,534 | $ 7,869 | $ 9,683 | |
[1] | Income tax (benefit) on the unrealized gains (losses) on securities was $714,000 for the three months ended March 31, 2017, $(2.9) million for the three months ended December 31, 2016 and $1.1 million for the three months ended March 31, 2016. | |||
[2] | Income tax (benefit) on the reclassification adjustment for net (gains) losses on sale of securities included in net income was $0 for the three months ended March 31, 2017, $0 for the three months ended December 31, 2016 and $317,000 for the three months ended March 31, 2016. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Tax effect on unrealized holding gains (losses) on securities arising during the period | $ 714 | $ (2,900) | $ 1,100 |
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | $ 0 | $ 0 | $ 317 |
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, 2015 | $ 298,980 | $ 215 | $ 221,487 | $ 76,946 | $ 332 |
Balance (in shares) at Dec. 31, 2015 | 21,570,746 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 8,554 | 8,554 | |||
Other comprehensive income | 1,129 | 1,129 | |||
Share-based compensation expense | 461 | 461 | |||
Issuance of restricted stock (in shares) | 118,936 | ||||
Common stock issued | 119,383 | $ 58 | 119,325 | ||
Common stock issued (in shares) | 5,815,051 | ||||
Exercise of stock options | 387 | 387 | |||
Exercise of stock options (in shares) | 32,500 | ||||
Balance at Mar. 31, 2016 | 428,894 | $ 273 | 341,660 | 85,500 | 1,461 |
Balance (in shares) at Mar. 31, 2016 | 27,537,233 | ||||
Balance at Dec. 31, 2016 | $ 459,740 | $ 274 | 345,138 | 117,049 | (2,721) |
Balance (in shares) at Dec. 31, 2016 | 27,798,283 | 27,798,283 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 9,521 | 9,521 | |||
Other comprehensive income | 1,013 | 1,013 | |||
Share-based compensation expense | 1,154 | 1,154 | |||
Issuance of restricted stock (in shares) | 56,866 | ||||
Repurchase of common stock | (904) | (904) | |||
Repurchase of common stock (in shares) | 0 | ||||
Exercise of stock options | 501 | $ 1 | 500 | ||
Exercise of stock options (in shares) | 53,667 | ||||
Balance at Mar. 31, 2017 | $ 471,025 | $ 275 | $ 345,888 | $ 126,570 | $ (1,708) |
Balance (in shares) at Mar. 31, 2017 | 27,908,816 | 27,908,816 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 9,521 | $ 11,953 | $ 8,554 |
Adjustments to net income: | |||
Depreciation and amortization expense | 825 | 670 | |
Provision for loan losses | 2,502 | 2,054 | 1,120 |
Share-based compensation expense | 1,154 | 461 | |
Loss on sale and disposal of premises and equipment | 45 | 0 | |
Net amortization on securities available-for-sale, net | 1,039 | 1,057 | |
Net accretion of discounts/premiums for loans acquired and deferred loan fees/costs | (249) | (2,584) | |
Gain on sale of investment securities available-for-sale | 0 | 0 | (753) |
Other-than-temporary impairment recovery on investment securities, net | 1 | 0 | |
Originations of loans held for sale | (35,149) | (18,899) | |
Proceeds from the sales of and principal payments from loans held for sale | 33,037 | 22,616 | |
Gain on sale of loans | (2,811) | (1,906) | |
Deferred income tax expense (benefit) | 3,350 | (325) | |
Change in accrued expenses and other liabilities, net | (8,178) | (5,499) | |
Income from bank owned life insurance, net | (287) | (290) | |
Amortization of core deposit intangible | 511 | 344 | |
Change in accrued interest receivable and other assets, net | 2,713 | 4,925 | |
Net cash (used in) provided by operating activities | 8,024 | 9,491 | |
Cash flows from investing activities: | |||
Increase in loans, net | (144,347) | (138,358) | |
Principal payments on securities available-for-sale | 10,535 | 9,676 | |
Purchase of securities available-for-sale | (65,771) | 0 | |
Proceeds from sale or maturity of securities available-for-sale | 1,770 | 192,809 | |
Proceeds from the sale of premises and equipment | 0 | 3,294 | |
Purchases of premises and equipment | (655) | (2,177) | |
Change in FHLB, FRB, and other stock, at cost | (507) | (3,561) | |
Cash acquired in acquisitions | 0 | 40,156 | |
Net cash (used in) provided by investing activities | (198,975) | 101,839 | |
Cash flows from financing activities: | |||
Net increase in deposit accounts | 151,588 | 74,549 | |
Change in FHLB advances and other borrowings, net | (16,578) | (71,169) | |
Proceeds from exercise of stock options and warrants | 501 | 387 | |
Repurchase of common stock | (904) | 0 | |
Net cash provided by financing activities | 134,607 | 3,767 | |
Net increase (decrease) in cash and cash equivalents | (56,344) | 115,097 | |
Cash and cash equivalents, beginning of period | 156,857 | 78,417 | |
Cash and cash equivalents, end of period | 100,513 | $ 156,857 | 193,514 |
Supplemental cash flow disclosures: | |||
Interest paid | 4,565 | 4,182 | |
Income taxes paid | 36 | 136 | |
Assets acquired (liabilities assumed and capital created) in acquisitions (See Note 4): | |||
Investment securities | 0 | 190,254 | |
FHLB and Other Stock | 0 | 3,671 | |
Loans | 0 | 456,158 | |
Core deposit intangible | 0 | 4,319 | |
Deferred income tax | 0 | 7,069 | |
Goodwill | 0 | 51,252 | |
Fixed assets | 0 | 4,356 | |
Other assets | 0 | 5,610 | |
Deposits | 0 | (636,591) | |
Other liabilities | 0 | (8,843) | |
Common stock and additional paid-in capital | $ 0 | $ (119,383) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 , the results of its operations and comprehensive income for the three months ended March 31, 2017 , December 31, 2016 and March 31, 2016 and the changes in stockholders’ equity and cash flows for the three months ended March 31, 2017 and 2016 . Operating results or comprehensive income for the three months ended March 31, 2017 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, 2017 . 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, 2016 (the “ 2016 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 | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Standards Adopted in 2017 In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Accounting. The amendments simplify several aspects of the accounting for share-based payment award transactions, including accounting for excess tax benefits and tax deficiencies, classifying excess tax benefits on the statement of cash flows, accounting for forfeitures, classifying awards that permit share repurchases to satisfy statutory tax-withholding requirements and classifying tax payments on behalf of employees on the statement of cash flows. For public business entities, the amendment is effective for annual periods beginning after December 15, 2016 and interim period within those annual periods. Early adopt is permitted for any organization in any interim or annual period. As a result of the adoption of ASU 2016-09, the Company began recognizing the tax effects of exercised or vested awards as discrete items in the reporting period in which they occur, resulting in a $1.1 million tax benefit to the Company for the first quarter of 2017. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The amendments clarify that a change in the counterparty to a derivative instrument designated as a hedging instrument does not, in and of itself, require designation of that hedging relationship provided that all other hedge accounting criteria remain the same. The Update is effective for public business entities for fiscal years beginning after December 31, 2016, including interim periods within those years. The adoption of this standard did not have a material effect on the Company's operating results or financial condition. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Except as discussed below, our accounting policies are described in Note 1. Description of Business and Summary of Significant Accounting Policies , of our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the Securities and Exchange Commission ("Form 10-K"). 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 November 30 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. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The Company accounted for the following transaction 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. Security California Bancorp Acquisition On January 31, 2016, the Company completed its acquisition of Security California Bancorp (“SCAF”) whereby we acquired $714 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 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 $51.7 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 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 (dollars 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 (1,145 ) 4,190 Core deposit intangible 493 3,826 4,319 Deferred tax assets 5,618 1,130 6,748 Other assets 10,589 (1,227 ) 9,362 Total assets acquired $ 716,633 $ (2,683 ) $ 713,950 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 $ (2,604 ) 68,516 Consideration paid 120,174 Goodwill recognized $ 51,658 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. As of March 31, 2017, the Company finalized its fair values with this acquisition. For loans acquired from SCAF, 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 (dollars in thousands) 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 In accordance with generally accepted accounting principles, there was no carryover of the allowance for loan losses that had been previously recorded by SCAF. The operating results of the Company for the three months ending March 31, 2016 include the operating results of SCAF since its acquisition date. The following table presents the net interest and other income, net income and earnings per share as if the acquisition of SCAF were effective as of January 1, 2016. There were no material, nonrecurring adjustments to the pro forma net interest and other income, net income and earnings per share presented below: Three Months Ended March 31, 2017 2016 (dollars in thousands) Net interest and other income $ 43,884 $ 40,090 Net income 9,521 6,583 Basic earnings per share 0.35 0.26 Diluted earnings per share 0.34 0.25 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities were as follows: March 31, 2017 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ 53,523 $ 838 $ (173 ) $ 54,188 Municipal bonds 129,366 605 (1,189 ) 128,782 Collateralized mortgage obligation: residential 30,145 45 (187 ) 30,003 Mortgage-backed securities: residential 225,346 126 (3,037 ) 222,435 Total investment securities available-for-sale 438,380 1,614 (4,586 ) 435,408 Investment securities held-to-maturity: Mortgage-backed securities: residential 7,095 — (125 ) 6,970 Other 1,177 — — 1,177 Total investment securities held-to-maturity 8,272 — (125 ) 8,147 Total investment securities $ 446,652 $ 1,614 $ (4,711 ) $ 443,555 December 31, 2016 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ 37,475 $ 372 $ (205 ) $ 37,642 Municipal bonds 120,155 338 (1,690 ) 118,803 Collateralized mortgage obligation: residential 31,536 25 (173 ) 31,388 Mortgage-backed securities: residential 196,496 69 (3,435 ) 193,130 Total investment securities available-for-sale 385,662 804 (5,503 ) 380,963 Investment securities held-to-maturity: Mortgage-backed securities: residential 7,375 — (104 ) 7,271 Other 1,190 — — 1,190 Total investment securities held-to-maturity 8,565 — (104 ) 8,461 Total investment securities $ 394,227 $ 804 $ (5,607 ) $ 389,424 At March 31, 2017 , mortgage-backed securities (“MBS”) with an estimated par value of $66 million and a fair value of $67.8 million were pledged as collateral for the Bank’s three repurchase agreements which totaled $28.5 million and homeowner’s association (“HOA”) reverse repurchase agreements which totaled $22.9 million . At December 31, 2016, mortgage-backed securities (“MBS”) with an estimated par value of $63.6 million and a fair value of $65.3 million were pledged as collateral for the Bank’s three repurchase agreements which totaled $28.5 million and Homeowner's Association ("HOA") reverse repurchase agreements which totaled $21.5 million . At March 31, 2017 and December 31, 2016 , there were not holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity. 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 impairment ("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 realized OTTI recovery of $1,000 for the three months ended March 31, 2017 , which relates to investment income from previously charged-off investments. The Company did not realize any OTTI recoveries or losses for the three months ended December 31, 2016 . A $207,000 OTTI was taken in the first quarter of 2016, related 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, and the sale closed in July 2016. The Company is currently waiting to receive the proceeds for its outstanding shares. As a result, the Bank's current holdings were written down and the loss recognized. The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous loss position. March 31, 2017 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) Investment securities available-for-sale: Corporate 3 $ 7,629 $ (173 ) — $ — $ — 3 $ 7,629 $ (173 ) Municipal bonds 90 53,419 (1,189 ) — — — 90 53,419 (1,189 ) Collateralized mortgage obligation: residential 5 17,032 (187 ) — — — 5 17,032 (187 ) Mortgage-backed securities: residential 57 168,484 (2,648 ) 6 20,105 (389 ) 63 188,589 (3,037 ) Total investment securities available-for-sale 155 246,564 (4,197 ) 6 20,105 (389 ) 161 266,669 (4,586 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 1 6,970 (125 ) — — — 1 6,970 (125 ) Total investment securities held-to-maturity 1 6,970 (125 ) — — — 1 6,970 (125 ) Total investment securities 156 $ 253,534 $ (4,322 ) 6 $ 20,105 $ (389 ) 162 $ 273,639 $ (4,711 ) December 31, 2016 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (dollars in thousands) Investment securities available-for-sale: Corporate 3 $ 7,609 $ (205 ) — $ — $ — 3 $ 7,609 $ (205 ) Municipal bonds 152 85,750 (1,690 ) — — — 152 85,750 (1,690 ) Collateralized mortgage obligation: residential 5 19,092 (173 ) — — — 5 19,092 (173 ) Mortgage-backed securities: residential 55 149,740 (2,916 ) 4 16,039 (519 ) 59 165,779 (3,435 ) Total investment securities available-for-sale 215 262,191 (4,984 ) 4 16,039 (519 ) 219 278,230 (5,503 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 1 7,271 (104 ) — — — 1 7,271 (104 ) Total investment securities held-to-maturity 1 7,271 (104 ) — — — 1 7,271 (104 ) Total investment securities 216 $ 269,462 $ (5,088 ) 4 $ 16,039 $ (519 ) 220 $ 285,501 $ (5,607 ) The amortized cost and estimated fair value of investment securities at March 31, 2017 , by contractual maturity are shown in the table below. One Year or Less More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ — $ — $ — $ — $ 45,523 $ 46,188 $ 8,000 $ 8,000 $ 53,523 $ 54,188 Municipal bonds 1,841 1,841 26,585 26,672 48,823 48,411 52,117 51,858 129,366 128,782 Collateralized mortgage obligation: residential — — — — 1,308 1,310 28,837 28,693 30,145 30,003 Mortgage-backed securities: residential — — 2,400 2,385 32,117 31,998 190,829 188,052 225,346 222,435 Total investment securities available-for-sale 1,841 1,841 28,985 29,057 127,771 127,907 279,783 276,603 438,380 435,408 Investment securities held-to-maturity: Mortgage-backed securities: residential — — — — — — 7,095 6,970 7,095 6,970 Other — — — — — — 1,177 1,177 1,177 1,177 Total investment securities held-to-maturity — — — — — — 8,272 8,147 8,272 8,147 Total investment securities $ 1,841 $ 1,841 $ 28,985 $ 29,057 $ 127,771 $ 127,907 $ 288,055 $ 284,750 $ 446,652 $ 443,555 Unrealized gains and losses on investment securities available-for-sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At March 31, 2017 , the Company had an accumulated other comprehensive loss of $3.0 million , or $1.7 million net of tax, compared to an accumulated other comprehensive loss of $4.7 million , or $2.7 million net of tax, at December 31, 2016 . During the three months ended March 31, 2017 and December 31, 2016 , the Company did not recognize any gross gains on sales of available-for-sale securities. For the three months ended March 31, 2016 , the Company recognized gross gain on sales of available-for-sale securities in the amount of $762,000 . During the three months ended March 31, 2017 and December 31, 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 , the Company recognized gross losses on sales of available-for-sale securities in the amount of $9,000 . The Company had zero net proceeds from the sale of available-for-sale securities during the three months ended March 31, 2017 and December 31, 2016 , and $186 million during the three months ended March 31, 2016 , respectively. FHLB, FRB and other stock At March 31, 2017 , the Company had $14.4 million in Federal Home Loan Bank (“FHLB”) stock, $10.9 million in Federal Reserve Bank of San Francisco (“FRB”) stock, and $12.5 million in other stock, all carried at cost. During the three months ended March 31, 2017 and December 31, 2016 , FHLB did not repurchase any of the Company’s excess FHLB stock through their stock repurchase program. The Company evaluates its investments in FHLB, FRB and other stock for impairment periodically, including their capital adequacy and overall financial condition. No impairment losses have been recorded through March 31, 2017 . |
Loans Held for Investment
Loans Held for Investment | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 593,457 $ 563,169 Franchise 493,158 459,421 Commercial owner occupied (1) 482,295 454,918 SBA 107,233 96,705 Real estate loans: Commercial non-owner occupied 612,787 586,975 Multi-family 682,237 690,955 One-to-four family (2) 100,423 100,451 Construction 298,279 269,159 Land 19,738 19,829 Other loans 3,930 4,112 Total gross loans (3) 3,393,537 3,245,694 Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net 3,250 3,630 Total loans 3,396,787 3,249,324 Less: loans held for sale, at lower of cost or fair value 11,090 7,711 Loans held for investment 3,385,697 3,241,613 Allowance for loan losses (23,075 ) (21,296 ) Loans held for investment, net $ 3,362,622 $ 3,220,317 ______________________________ (1) Secured by real estate. (2) Includes second trust deeds. (3) Total gross loans for March 31, 2017 are net of the unaccreted fair value purchase discounts of $6.4 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 $137.6 million for secured loans and $82.6 million for unsecured loans at March 31, 2017 . At March 31, 2017 , the Bank’s largest aggregate outstanding balance of loans to one borrower was $33.0 million of secured credit. Purchased Credit Impaired The Company has purchased loans as part of its acquisitions of Canyon National Bank in 2011, Palm Desert National Bank in 2012, Independence Bank in 2015 and Security Bank of California in 2016, for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows: March 31, 2017 December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 2,536 $ 2,586 Commercial owner occupied 481 491 Real estate loans: Commercial non-owner occupied 1,036 1,088 One-to-four family — 1 Other loans 318 393 Total purchase credit impaired $ 4,371 $ 4,559 On the acquisition date, the amount by which the undiscounted expected cash flows of the purchased credit impaired loans exceed the estimated fair value of the loan is the “accretable yield.” The accretable yield is measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the purchased credit impaired loan. At March 31, 2017 , the Company had $4.4 million of purchased credit impaired loans, of which none were placed on nonaccrual status. The following table summarizes the accretable yield on the purchased credit impaired loans for the three months ended March 31, 2017 , December 31, 2016 and March 31, 2016 : Three Months Ended March 31, 2017 December 31, 2016 March 31, 2016 (dollars in thousands) Balance at the beginning of period $ 3,747 $ 3,254 $ 2,726 Additions — — 788 Accretion (629 ) (432 ) (129 ) Payoffs — (113 ) (323 ) Reclassification from (to) nonaccretable difference 483 1,038 192 Balance at the end of period $ 3,601 $ 3,747 $ 3,254 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 (dollars in thousands) March 31, 2017 Business loans: Commercial owner occupied $ 118 $ 86 $ — $ 86 $ — SBA 2,442 298 — 298 — Real estate loans: One-to-four family 286 115 — 115 — Land 36 14 — 14 — Totals $ 2,882 $ 513 $ — $ 513 $ — Impaired Loans Contractual Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans (dollars in thousands) December 31, 2016 Business loans: Commercial and industrial $ 1,990 $ 250 $ 250 $ — $ 250 Commercial owner occupied 847 436 — 436 — SBA 3,865 316 — 316 — Real estate loans: One-to-four family 291 124 — 124 — Land 36 15 — 15 — Totals $ 7,029 $ 1,141 $ 250 $ 891 $ 250 Impaired Loans Three Months Ended March 31, 2017 December 31, 2016 March 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Business loans: Commercial and industrial $ 200 $ 5 $ 1,410 $ 47 $ 308 $ 5 Franchise — — — — 1,629 27 Commercial owner occupied 192 3 493 10 518 9 SBA 307 5 672 13 23 — Real estate loans: Commercial non-owner occupied — — 1,658 49 143 2 One-to-four family 116 3 128 4 251 5 Land 14 1 16 1 20 1 Totals $ 829 $ 17 $ 4,377 $ 124 $ 2,892 $ 49 The Company considers a loan to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or it is determined that the likelihood of the Company receiving all scheduled payments, including interest, when due is remote. The Company has no commitments to lend additional funds to debtors whose loans have been impaired. The Company reviews loans for impairment when the loan is classified as substandard or worse, delinquent 90 days, or determined by management to be collateral dependent, or when the borrower files bankruptcy or is granted a troubled debt restructuring (“TDR”). Measurement of impairment is based on the loan’s expected future cash flows discounted at the loan’s effective interest rate, measured by reference to an observable market value, if one exists, or the fair value of the collateral if the loan is deemed collateral dependent. All loans are generally charged-off at such time the loan is classified as a loss. Valuation allowances are determined on a loan-by-loan basis or by aggregating loans with similar risk characteristics. The following table provides additional detail on the components of impaired loans at the period end indicated: March 31, 2017 December 31, 2016 (dollars in thousands) Nonaccruing loans $ 513 $ 1,141 Accruing loans — — Total impaired loans $ 513 $ 1,141 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 $0.5 million at March 31, 2017 and $1.1 million at December 31, 2016 . The Company had no loans 90 days or more past due and still accruing at March 31, 2017 and December 31, 2016 . The Company had no TDRs at March 31, 2017 and December 31, 2016 . In addition, the Company had $41,000 in consumer mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in process as of March 31, 2017 and December 31, 2016 . Concentration of Credit Risk As of March 31, 2017 , the Company’s loan portfolio was primarily 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 real estate and 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 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 managers based on a comprehensive credit and portfolio 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 managers also monitor 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 every two years 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 managers also manage 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 as of the periods indicated: Credit Risk Grades Pass Special Mention Substandard Doubtful Total Gross Loans March 31, 2017 (dollars in thousands) Business loans: Commercial and industrial $ 579,569 $ 9,365 $ 4,523 $ — $ 593,457 Franchise 493,158 — — — 493,158 Commercial owner occupied 477,109 997 4,189 — 482,295 SBA 106,644 18 571 — 107,233 Real estate loans: Commercial non-owner occupied 611,357 806 624 — 612,787 Multi-family 681,690 — 547 — 682,237 One-to-four family 99,992 — 431 — 100,423 Construction 298,279 — — — 298,279 Land 19,724 — 14 — 19,738 Other loans 3,607 — 323 — 3,930 Totals $ 3,371,129 $ 11,186 $ 11,222 $ — $ 3,393,537 Credit Risk Grades Pass Special Substandard Doubtful Total Gross December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 550,919 $ 8,216 $ 3,784 $ 250 $ 563,169 Franchise 459,421 — — — 459,421 Commercial owner occupied 450,416 281 4,221 — 454,918 SBA 96,190 53 462 — 96,705 Real estate loans: Commercial non-owner occupied 585,093 810 1,072 — 586,975 Multi-family 681,942 6,610 2,403 — 690,955 One-to-four family 100,010 — 441 — 100,451 Construction 269,159 — — — 269,159 Land 19,814 — 15 — 19,829 Other loans 3,719 — 393 — 4,112 Totals $ 3,216,683 $ 15,970 $ 12,791 $ 250 $ 3,245,694 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 March 31, 2017 (dollars in thousands) Business loans: Commercial and industrial $ 593,375 $ 82 $ — $ — $ 593,457 $ — Franchise 493,158 — — — 493,158 — Commercial owner occupied 482,260 35 — — 482,295 86 SBA 106,936 — — 297 107,233 298 Real estate loans: Commercial non-owner occupied 612,787 — — — 612,787 — Multi-family 682,237 — — — 682,237 — One-to-four family 100,374 — — 49 100,423 115 Construction 298,279 — — — 298,279 — Land 19,724 — — 14 19,738 14 Other loans 3,930 — — — 3,930 — Totals $ 3,393,060 $ 117 $ — $ 360 $ 3,393,537 $ 513 Days Past Due Non- Current 30-59 60-89 90+ Total Accruing December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 562,805 $ 104 $ — $ 260 $ 563,169 $ 250 Franchise 459,421 — — — 459,421 — Commercial owner occupied 454,918 — — — 454,918 436 SBA 96,389 — — 316 96,705 316 Real estate loans: Commercial non-owner occupied 586,975 — — — 586,975 — Multi-family 690,955 — — — 690,955 — One-to-four family 100,314 18 71 48 100,451 124 Construction 269,159 — — — 269,159 — Land 19,814 — — 15 19,829 15 Other loans 4,112 — — — 4,112 — Totals $ 3,244,862 $ 122 $ 71 $ 639 $ 3,245,694 $ 1,141 |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2017 | |
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 6 to 87 months to encompass a full credit cycle. 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. The following tables summarize the allocation of the ALLL, as well as the activity in the ALLL attributed to various segments in the loan portfolio as of and for the three months ended for the periods indicated: Three Months Ended March 31, 2017 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, 2016 $ 6,362 $ 3,845 $ 1,193 $ 1,039 $ — $ 1,715 $ 2,927 $ 365 $ 3,632 $ 198 $ 20 $ 21,296 Charge-offs (752 ) — — (8 ) — — — — — — — (760 ) Recoveries 22 — 12 2 — — — 1 — — — 37 Provisions for (reduction in) loan losses 1,317 629 27 112 — 132 (124 ) 7 395 6 1 2,502 Balance, March 31, 2017 $ 6,949 $ 4,474 $ 1,232 $ 1,145 $ — $ 1,847 $ 2,803 $ 373 $ 4,027 $ 204 $ 21 $ 23,075 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — General portfolio allocation 6,949 4,474 1,232 1,145 — 1,847 2,803 373 4,027 204 21 23,075 Loans individually evaluated for impairment — — 86 298 — — — 115 — 14 — 513 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % — % — % — % — % — % — % Loans collectively evaluated for impairment $ 593,457 $ 493,158 $ 482,209 $ 96,188 $ — $ 612,444 $ 682,237 $ 100,308 $ 298,279 $ 19,724 $ 3,930 $ 3,381,934 General reserves to total loans collectively evaluated for impairment 1.17 % 0.91 % 0.26 % 1.19 % — % 0.30 % 0.41 % 0.37 % 1.35 % 1.03 % 0.53 % 0.68 % Total gross loans held for investment $ 593,457 $ 493,158 $ 482,295 $ 96,486 $ — $ 612,444 $ 682,237 $ 100,423 $ 298,279 $ 19,738 $ 3,930 $ 3,382,447 Total allowance to gross loans held for investment 1.17 % 0.91 % 0.26 % 1.19 % — % 0.30 % 0.41 % 0.37 % 1.35 % 1.03 % 0.53 % 0.68 % Three Months Ended March 31, 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 — — — — — — — — — — — — Recoveries 14 — — 3 — — — 1 — — — 18 Provisions for (reduction in) loan losses (440 ) 444 95 125 (752 ) (151 ) 1,349 6 474 (29 ) (1 ) 1,120 Balance, March 31, 2016 $ 3,023 $ 3,568 $ 1,965 $ 1,628 $ 7 $ 1,897 $ 2,932 $ 705 $ 2,504 $ 204 $ 22 $ 18,455 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ 731 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 731 General portfolio allocation 3,023 2,837 1,965 1,628 7 1,897 2,932 705 2,504 204 22 17,724 Loans individually evaluated for impairment 306 1,630 507 69 — — — 523 — 19 — 3,054 Specific reserves to total loans individually evaluated for impairment — % 44.85 % — % — % — % — % — % — % — % — % — % 23.94 % Loans collectively evaluated for impairment $ 490,806 $ 370,245 $ 423,782 $ 71,000 $ 1,394 $ 522,080 $ 619,485 $ 106,331 $ 218,069 $ 18,203 $ 6,045 $ 2,847,440 General reserves to total loans collectively evaluated for impairment 0.62 % 0.77 % 0.46 % 2.29 % 0.50 % 0.36 % 0.47 % 0.66 % 1.15 % 1.12 % 0.36 % 0.62 % Total gross loans held for investment $ 491,112 $ 371,875 $ 424,289 $ 71,069 $ 1,394 $ 522,080 $ 619,485 $ 106,854 $ 218,069 $ 18,222 $ 6,045 $ 2,850,494 Total allowance to gross loans held for investment 0.62 % 0.96 % 0.46 % 2.29 % 0.50 % 0.36 % 0.47 % 0.66 % 1.15 % 1.12 % 0.36 % 0.65 % |
Subordinated Debentures
Subordinated Debentures | 3 Months Ended |
Mar. 31, 2017 | |
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 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 reaffirmed by KBRA on November 1, 2016. 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 3.77% per annum as of March 31, 2017 . The Corporation is not allowed to consolidate PPBI Trust I into the Company’s consolidated financial statements. The resulting effect on the Company’s consolidated financial statements is to report only the Subordinated Debentures as a component of the Company’s liabilities. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, December 31, March 31, 2017 2016 2016 Weighted average stock options excluded — — 108,407 The following tables set forth the Company’s earnings per share calculations for the periods indicated: Three Months Ended March 31, 2017 December 31, 2016 March 31, 2016 Net Shares Per Share Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 9,521 $ 11,953 $ 8,554 Basic income available to common stockholders 9,521 27,528,940 $ 0.35 11,953 27,394,737 $ 0.44 8,554 25,555,654 $ 0.33 Effect of dilutive stock option grants and warrants — 668,280 — 632,742 — 396,530 Diluted income available to common stockholders plus assumed conversions $ 9,521 28,197,220 $ 0.34 $ 11,953 28,027,479 $ 0.43 $ 8,554 25,952,184 $ 0.33 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , December 31, 2016 and March 31, 2016 . 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 independent third-party pricing services, 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/Payable – 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 March 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 100,513 $ 100,513 $ — $ — $ 100,513 Interest-bearing time deposits with financial institutions 3,944 3,944 — — 3,944 Investments held-to-maturity 8,272 — 8,147 — 8,147 Securities available-for-sale 435,408 — 435,408 — 435,408 Federal Reserve Bank and FHLB stock, at cost 37,811 N/A N/A N/A N/A Loans held for sale, net 11,090 — 11,969 — 11,969 Loans held for investment, net 3,362,622 — — 3,347,355 3,347,355 Accrued interest receivable 13,366 13,366 — — 13,366 Liabilities: Deposit accounts 3,297,073 2,439,584 597,500 — 3,037,084 FHLB advances 260,000 — 259,917 — 259,917 Other borrowings 51,363 — 52,126 — 52,126 Subordinated debentures 69,413 — 70,104 — 70,104 Accrued interest payable 286 286 — — 286 At December 31, 2016 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 156,857 $ 156,857 $ — $ — $ 156,857 Interest-bearing time deposits with financial institutions 3,944 3,944 — — 3,944 Investments held-to-maturity 8,565 — 8,461 8,461 Securities available-for-sale 380,963 — 380,963 — 380,963 Federal Reserve Bank and FHLB stock, at cost 37,304 N/A N/A N/A N/A Loans held for sale, net 7,711 — 8,405 — 8,405 Loans held for investment, net 3,220,317 — — 3,211,154 3,211,154 Accrued interest receivable 13,145 13,145 — — 13,145 Liabilities: Deposit accounts 3,145,581 2,330,579 573,467 — 2,904,046 FHLB advances 278,000 — 277,935 — 277,935 Other borrowings 49,971 — 50,905 — 50,905 Subordinated debentures 69,383 — 69,982 — 69,982 Accrued interest payable 263 263 — — 263 The following fair value hierarchy table presents information about the Company’s financial instruments measured at fair value on a recurring basis at the dates indicated: March 31, 2017 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ — $ 54,188 $ — $ 54,188 Municipal bonds — 128,782 — 128,782 Collateralized mortgage obligation: residential — 30,003 — 30,003 Mortgage-backed securities: residential — 222,435 — 222,435 Total securities available-for-sale $ — $ 435,408 $ — $ 435,408 December 31, 2016 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ — $ 37,642 $ — $ 37,642 Municipal bonds — 118,803 — 118,803 Collateralized mortgage obligation: residential — 31,388 — 31,388 Mortgage-backed securities: residential — 193,130 — 193,130 Total securities available-for-sale $ — $ 380,963 $ — $ 380,963 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 March 31, 2017 , 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 valuations) 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Pacific Premier Bancorp, Inc. and Heritage Oak Bancorp On April 3, 2017 the Company announced that it had completed the acquisition, effective as of April 1, 2017, of Heritage Oaks Bancorp ("HEOP"), the holding company of Heritage Oaks Bank, a Paso Robles, California based state-chartered bank (“Heritage Oaks Bank”) with $2.0 billion in total assets, $1.4 billion in gross loans and $1.7 billion in total deposits at December 31, 2016. Heritage Oaks, operates branches within San Luis Obispo and Santa Barbara Counties and a loan production office in Ventura County. Pursuant to the terms of the merger agreement, each outstanding share of Heritage Oaks common stock was converted into the right to receive 0.3471 shares of Company common stock. The value of the total deal consideration was approximately $482 million , which included approximately $1.4 million of aggregate cash consideration payable to holders of vested cash-settled Heritage Oaks restricted stock units and performance-based restricted stock units, and the issuance of 11,959,535 shares of the Corporation's common stock, which had a value of $38.55 per share, which was the closing price of the Corporation's common stock on March 31, 2017, the last trading day prior to the consummation of the acquisition. The initial accounting for the business combination was incomplete at the time the financial statements were issued, therefore the calculation of fair value of the consideration transfered, the total identifiable net assets acquired, resulting goodwill and associated tax effect has not yet been determined. |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Accounting Standards Adopted in 2017 In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Accounting. The amendments simplify several aspects of the accounting for share-based payment award transactions, including accounting for excess tax benefits and tax deficiencies, classifying excess tax benefits on the statement of cash flows, accounting for forfeitures, classifying awards that permit share repurchases to satisfy statutory tax-withholding requirements and classifying tax payments on behalf of employees on the statement of cash flows. For public business entities, the amendment is effective for annual periods beginning after December 15, 2016 and interim period within those annual periods. Early adopt is permitted for any organization in any interim or annual period. As a result of the adoption of ASU 2016-09, the Company began recognizing the tax effects of exercised or vested awards as discrete items in the reporting period in which they occur, resulting in a $1.1 million tax benefit to the Company for the first quarter of 2017. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The amendments clarify that a change in the counterparty to a derivative instrument designated as a hedging instrument does not, in and of itself, require designation of that hedging relationship provided that all other hedge accounting criteria remain the same. The Update is effective for public business entities for fiscal years beginning after December 31, 2016, including interim periods within those years. The adoption of this standard did not have a material effect on the Company's operating results or financial condition. |
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 November 30 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 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 (dollars 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 (1,145 ) 4,190 Core deposit intangible 493 3,826 4,319 Deferred tax assets 5,618 1,130 6,748 Other assets 10,589 (1,227 ) 9,362 Total assets acquired $ 716,633 $ (2,683 ) $ 713,950 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 $ (2,604 ) 68,516 Consideration paid 120,174 Goodwill recognized $ 51,658 |
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, 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 (dollars in thousands) 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 |
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: Three Months Ended March 31, 2017 2016 (dollars in thousands) Net interest and other income $ 43,884 $ 40,090 Net income 9,521 6,583 Basic earnings per share 0.35 0.26 Diluted earnings per share 0.34 0.25 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ 53,523 $ 838 $ (173 ) $ 54,188 Municipal bonds 129,366 605 (1,189 ) 128,782 Collateralized mortgage obligation: residential 30,145 45 (187 ) 30,003 Mortgage-backed securities: residential 225,346 126 (3,037 ) 222,435 Total investment securities available-for-sale 438,380 1,614 (4,586 ) 435,408 Investment securities held-to-maturity: Mortgage-backed securities: residential 7,095 — (125 ) 6,970 Other 1,177 — — 1,177 Total investment securities held-to-maturity 8,272 — (125 ) 8,147 Total investment securities $ 446,652 $ 1,614 $ (4,711 ) $ 443,555 December 31, 2016 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ 37,475 $ 372 $ (205 ) $ 37,642 Municipal bonds 120,155 338 (1,690 ) 118,803 Collateralized mortgage obligation: residential 31,536 25 (173 ) 31,388 Mortgage-backed securities: residential 196,496 69 (3,435 ) 193,130 Total investment securities available-for-sale 385,662 804 (5,503 ) 380,963 Investment securities held-to-maturity: Mortgage-backed securities: residential 7,375 — (104 ) 7,271 Other 1,190 — — 1,190 Total investment securities held-to-maturity 8,565 — (104 ) 8,461 Total investment securities $ 394,227 $ 804 $ (5,607 ) $ 389,424 |
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. March 31, 2017 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) Investment securities available-for-sale: Corporate 3 $ 7,629 $ (173 ) — $ — $ — 3 $ 7,629 $ (173 ) Municipal bonds 90 53,419 (1,189 ) — — — 90 53,419 (1,189 ) Collateralized mortgage obligation: residential 5 17,032 (187 ) — — — 5 17,032 (187 ) Mortgage-backed securities: residential 57 168,484 (2,648 ) 6 20,105 (389 ) 63 188,589 (3,037 ) Total investment securities available-for-sale 155 246,564 (4,197 ) 6 20,105 (389 ) 161 266,669 (4,586 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 1 6,970 (125 ) — — — 1 6,970 (125 ) Total investment securities held-to-maturity 1 6,970 (125 ) — — — 1 6,970 (125 ) Total investment securities 156 $ 253,534 $ (4,322 ) 6 $ 20,105 $ (389 ) 162 $ 273,639 $ (4,711 ) December 31, 2016 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (dollars in thousands) Investment securities available-for-sale: Corporate 3 $ 7,609 $ (205 ) — $ — $ — 3 $ 7,609 $ (205 ) Municipal bonds 152 85,750 (1,690 ) — — — 152 85,750 (1,690 ) Collateralized mortgage obligation: residential 5 19,092 (173 ) — — — 5 19,092 (173 ) Mortgage-backed securities: residential 55 149,740 (2,916 ) 4 16,039 (519 ) 59 165,779 (3,435 ) Total investment securities available-for-sale 215 262,191 (4,984 ) 4 16,039 (519 ) 219 278,230 (5,503 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 1 7,271 (104 ) — — — 1 7,271 (104 ) Total investment securities held-to-maturity 1 7,271 (104 ) — — — 1 7,271 (104 ) Total investment securities 216 $ 269,462 $ (5,088 ) 4 $ 16,039 $ (519 ) 220 $ 285,501 $ (5,607 ) |
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 March 31, 2017 , by contractual maturity are shown in the table below. One Year or Less More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ — $ — $ — $ — $ 45,523 $ 46,188 $ 8,000 $ 8,000 $ 53,523 $ 54,188 Municipal bonds 1,841 1,841 26,585 26,672 48,823 48,411 52,117 51,858 129,366 128,782 Collateralized mortgage obligation: residential — — — — 1,308 1,310 28,837 28,693 30,145 30,003 Mortgage-backed securities: residential — — 2,400 2,385 32,117 31,998 190,829 188,052 225,346 222,435 Total investment securities available-for-sale 1,841 1,841 28,985 29,057 127,771 127,907 279,783 276,603 438,380 435,408 Investment securities held-to-maturity: Mortgage-backed securities: residential — — — — — — 7,095 6,970 7,095 6,970 Other — — — — — — 1,177 1,177 1,177 1,177 Total investment securities held-to-maturity — — — — — — 8,272 8,147 8,272 8,147 Total investment securities $ 1,841 $ 1,841 $ 28,985 $ 29,057 $ 127,771 $ 127,907 $ 288,055 $ 284,750 $ 446,652 $ 443,555 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 593,457 $ 563,169 Franchise 493,158 459,421 Commercial owner occupied (1) 482,295 454,918 SBA 107,233 96,705 Real estate loans: Commercial non-owner occupied 612,787 586,975 Multi-family 682,237 690,955 One-to-four family (2) 100,423 100,451 Construction 298,279 269,159 Land 19,738 19,829 Other loans 3,930 4,112 Total gross loans (3) 3,393,537 3,245,694 Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net 3,250 3,630 Total loans 3,396,787 3,249,324 Less: loans held for sale, at lower of cost or fair value 11,090 7,711 Loans held for investment 3,385,697 3,241,613 Allowance for loan losses (23,075 ) (21,296 ) Loans held for investment, net $ 3,362,622 $ 3,220,317 ______________________________ (1) Secured by real estate. (2) Includes second trust deeds. (3) Total gross loans for March 31, 2017 are net of the unaccreted fair value purchase discounts of $6.4 million . |
Summary of Company's investment in purchased credit impaired loans | The carrying amount of those loans is as follows: March 31, 2017 December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 2,536 $ 2,586 Commercial owner occupied 481 491 Real estate loans: Commercial non-owner occupied 1,036 1,088 One-to-four family — 1 Other loans 318 393 Total purchase credit impaired $ 4,371 $ 4,559 |
Summary of accretable yield on purchased credit impaired | The following table summarizes the accretable yield on the purchased credit impaired loans for the three months ended March 31, 2017 , December 31, 2016 and March 31, 2016 : Three Months Ended March 31, 2017 December 31, 2016 March 31, 2016 (dollars in thousands) Balance at the beginning of period $ 3,747 $ 3,254 $ 2,726 Additions — — 788 Accretion (629 ) (432 ) (129 ) Payoffs — (113 ) (323 ) Reclassification from (to) nonaccretable difference 483 1,038 192 Balance at the end of period $ 3,601 $ 3,747 $ 3,254 |
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 (dollars in thousands) March 31, 2017 Business loans: Commercial owner occupied $ 118 $ 86 $ — $ 86 $ — SBA 2,442 298 — 298 — Real estate loans: One-to-four family 286 115 — 115 — Land 36 14 — 14 — Totals $ 2,882 $ 513 $ — $ 513 $ — Impaired Loans Contractual Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans (dollars in thousands) December 31, 2016 Business loans: Commercial and industrial $ 1,990 $ 250 $ 250 $ — $ 250 Commercial owner occupied 847 436 — 436 — SBA 3,865 316 — 316 — Real estate loans: One-to-four family 291 124 — 124 — Land 36 15 — 15 — Totals $ 7,029 $ 1,141 $ 250 $ 891 $ 250 Impaired Loans Three Months Ended March 31, 2017 December 31, 2016 March 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Business loans: Commercial and industrial $ 200 $ 5 $ 1,410 $ 47 $ 308 $ 5 Franchise — — — — 1,629 27 Commercial owner occupied 192 3 493 10 518 9 SBA 307 5 672 13 23 — Real estate loans: Commercial non-owner occupied — — 1,658 49 143 2 One-to-four family 116 3 128 4 251 5 Land 14 1 16 1 20 1 Totals $ 829 $ 17 $ 4,377 $ 124 $ 2,892 $ 49 |
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: March 31, 2017 December 31, 2016 (dollars in thousands) Nonaccruing loans $ 513 $ 1,141 Accruing loans — — Total impaired loans $ 513 $ 1,141 |
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 as of the periods indicated: Credit Risk Grades Pass Special Mention Substandard Doubtful Total Gross Loans March 31, 2017 (dollars in thousands) Business loans: Commercial and industrial $ 579,569 $ 9,365 $ 4,523 $ — $ 593,457 Franchise 493,158 — — — 493,158 Commercial owner occupied 477,109 997 4,189 — 482,295 SBA 106,644 18 571 — 107,233 Real estate loans: Commercial non-owner occupied 611,357 806 624 — 612,787 Multi-family 681,690 — 547 — 682,237 One-to-four family 99,992 — 431 — 100,423 Construction 298,279 — — — 298,279 Land 19,724 — 14 — 19,738 Other loans 3,607 — 323 — 3,930 Totals $ 3,371,129 $ 11,186 $ 11,222 $ — $ 3,393,537 Credit Risk Grades Pass Special Substandard Doubtful Total Gross December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 550,919 $ 8,216 $ 3,784 $ 250 $ 563,169 Franchise 459,421 — — — 459,421 Commercial owner occupied 450,416 281 4,221 — 454,918 SBA 96,190 53 462 — 96,705 Real estate loans: Commercial non-owner occupied 585,093 810 1,072 — 586,975 Multi-family 681,942 6,610 2,403 — 690,955 One-to-four family 100,010 — 441 — 100,451 Construction 269,159 — — — 269,159 Land 19,814 — 15 — 19,829 Other loans 3,719 — 393 — 4,112 Totals $ 3,216,683 $ 15,970 $ 12,791 $ 250 $ 3,245,694 |
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 March 31, 2017 (dollars in thousands) Business loans: Commercial and industrial $ 593,375 $ 82 $ — $ — $ 593,457 $ — Franchise 493,158 — — — 493,158 — Commercial owner occupied 482,260 35 — — 482,295 86 SBA 106,936 — — 297 107,233 298 Real estate loans: Commercial non-owner occupied 612,787 — — — 612,787 — Multi-family 682,237 — — — 682,237 — One-to-four family 100,374 — — 49 100,423 115 Construction 298,279 — — — 298,279 — Land 19,724 — — 14 19,738 14 Other loans 3,930 — — — 3,930 — Totals $ 3,393,060 $ 117 $ — $ 360 $ 3,393,537 $ 513 Days Past Due Non- Current 30-59 60-89 90+ Total Accruing December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 562,805 $ 104 $ — $ 260 $ 563,169 $ 250 Franchise 459,421 — — — 459,421 — Commercial owner occupied 454,918 — — — 454,918 436 SBA 96,389 — — 316 96,705 316 Real estate loans: Commercial non-owner occupied 586,975 — — — 586,975 — Multi-family 690,955 — — — 690,955 — One-to-four family 100,314 18 71 48 100,451 124 Construction 269,159 — — — 269,159 — Land 19,814 — — 15 19,829 15 Other loans 4,112 — — — 4,112 — Totals $ 3,244,862 $ 122 $ 71 $ 639 $ 3,245,694 $ 1,141 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 months ended for the periods indicated: Three Months Ended March 31, 2017 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, 2016 $ 6,362 $ 3,845 $ 1,193 $ 1,039 $ — $ 1,715 $ 2,927 $ 365 $ 3,632 $ 198 $ 20 $ 21,296 Charge-offs (752 ) — — (8 ) — — — — — — — (760 ) Recoveries 22 — 12 2 — — — 1 — — — 37 Provisions for (reduction in) loan losses 1,317 629 27 112 — 132 (124 ) 7 395 6 1 2,502 Balance, March 31, 2017 $ 6,949 $ 4,474 $ 1,232 $ 1,145 $ — $ 1,847 $ 2,803 $ 373 $ 4,027 $ 204 $ 21 $ 23,075 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — General portfolio allocation 6,949 4,474 1,232 1,145 — 1,847 2,803 373 4,027 204 21 23,075 Loans individually evaluated for impairment — — 86 298 — — — 115 — 14 — 513 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % — % — % — % — % — % — % Loans collectively evaluated for impairment $ 593,457 $ 493,158 $ 482,209 $ 96,188 $ — $ 612,444 $ 682,237 $ 100,308 $ 298,279 $ 19,724 $ 3,930 $ 3,381,934 General reserves to total loans collectively evaluated for impairment 1.17 % 0.91 % 0.26 % 1.19 % — % 0.30 % 0.41 % 0.37 % 1.35 % 1.03 % 0.53 % 0.68 % Total gross loans held for investment $ 593,457 $ 493,158 $ 482,295 $ 96,486 $ — $ 612,444 $ 682,237 $ 100,423 $ 298,279 $ 19,738 $ 3,930 $ 3,382,447 Total allowance to gross loans held for investment 1.17 % 0.91 % 0.26 % 1.19 % — % 0.30 % 0.41 % 0.37 % 1.35 % 1.03 % 0.53 % 0.68 % Three Months Ended March 31, 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 — — — — — — — — — — — — Recoveries 14 — — 3 — — — 1 — — — 18 Provisions for (reduction in) loan losses (440 ) 444 95 125 (752 ) (151 ) 1,349 6 474 (29 ) (1 ) 1,120 Balance, March 31, 2016 $ 3,023 $ 3,568 $ 1,965 $ 1,628 $ 7 $ 1,897 $ 2,932 $ 705 $ 2,504 $ 204 $ 22 $ 18,455 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ 731 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 731 General portfolio allocation 3,023 2,837 1,965 1,628 7 1,897 2,932 705 2,504 204 22 17,724 Loans individually evaluated for impairment 306 1,630 507 69 — — — 523 — 19 — 3,054 Specific reserves to total loans individually evaluated for impairment — % 44.85 % — % — % — % — % — % — % — % — % — % 23.94 % Loans collectively evaluated for impairment $ 490,806 $ 370,245 $ 423,782 $ 71,000 $ 1,394 $ 522,080 $ 619,485 $ 106,331 $ 218,069 $ 18,203 $ 6,045 $ 2,847,440 General reserves to total loans collectively evaluated for impairment 0.62 % 0.77 % 0.46 % 2.29 % 0.50 % 0.36 % 0.47 % 0.66 % 1.15 % 1.12 % 0.36 % 0.62 % Total gross loans held for investment $ 491,112 $ 371,875 $ 424,289 $ 71,069 $ 1,394 $ 522,080 $ 619,485 $ 106,854 $ 218,069 $ 18,222 $ 6,045 $ 2,850,494 Total allowance to gross loans held for investment 0.62 % 0.96 % 0.46 % 2.29 % 0.50 % 0.36 % 0.47 % 0.66 % 1.15 % 1.12 % 0.36 % 0.65 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, December 31, March 31, 2017 2016 2016 Weighted average stock options excluded — — 108,407 |
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 March 31, 2017 December 31, 2016 March 31, 2016 Net Shares Per Share Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 9,521 $ 11,953 $ 8,554 Basic income available to common stockholders 9,521 27,528,940 $ 0.35 11,953 27,394,737 $ 0.44 8,554 25,555,654 $ 0.33 Effect of dilutive stock option grants and warrants — 668,280 — 632,742 — 396,530 Diluted income available to common stockholders plus assumed conversions $ 9,521 28,197,220 $ 0.34 $ 11,953 28,027,479 $ 0.43 $ 8,554 25,952,184 $ 0.33 |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 100,513 $ 100,513 $ — $ — $ 100,513 Interest-bearing time deposits with financial institutions 3,944 3,944 — — 3,944 Investments held-to-maturity 8,272 — 8,147 — 8,147 Securities available-for-sale 435,408 — 435,408 — 435,408 Federal Reserve Bank and FHLB stock, at cost 37,811 N/A N/A N/A N/A Loans held for sale, net 11,090 — 11,969 — 11,969 Loans held for investment, net 3,362,622 — — 3,347,355 3,347,355 Accrued interest receivable 13,366 13,366 — — 13,366 Liabilities: Deposit accounts 3,297,073 2,439,584 597,500 — 3,037,084 FHLB advances 260,000 — 259,917 — 259,917 Other borrowings 51,363 — 52,126 — 52,126 Subordinated debentures 69,413 — 70,104 — 70,104 Accrued interest payable 286 286 — — 286 At December 31, 2016 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 156,857 $ 156,857 $ — $ — $ 156,857 Interest-bearing time deposits with financial institutions 3,944 3,944 — — 3,944 Investments held-to-maturity 8,565 — 8,461 8,461 Securities available-for-sale 380,963 — 380,963 — 380,963 Federal Reserve Bank and FHLB stock, at cost 37,304 N/A N/A N/A N/A Loans held for sale, net 7,711 — 8,405 — 8,405 Loans held for investment, net 3,220,317 — — 3,211,154 3,211,154 Accrued interest receivable 13,145 13,145 — — 13,145 Liabilities: Deposit accounts 3,145,581 2,330,579 573,467 — 2,904,046 FHLB advances 278,000 — 277,935 — 277,935 Other borrowings 49,971 — 50,905 — 50,905 Subordinated debentures 69,383 — 69,982 — 69,982 Accrued interest payable 263 263 — — 263 |
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: March 31, 2017 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ — $ 54,188 $ — $ 54,188 Municipal bonds — 128,782 — 128,782 Collateralized mortgage obligation: residential — 30,003 — 30,003 Mortgage-backed securities: residential — 222,435 — 222,435 Total securities available-for-sale $ — $ 435,408 $ — $ 435,408 December 31, 2016 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (dollars in thousands) Investment securities available-for-sale: Corporate $ — $ 37,642 $ — $ 37,642 Municipal bonds — 118,803 — 118,803 Collateralized mortgage obligation: residential — 31,388 — 31,388 Mortgage-backed securities: residential — 193,130 — 193,130 Total securities available-for-sale $ — $ 380,963 $ — $ 380,963 |
Significant Accounting Polici27
Significant Accounting Policies (Details) - Core deposit | 3 Months Ended |
Mar. 31, 2017 | |
Minimum | |
Significant Accounting Policies | |
Estimated useful lives (in years) | 6 years |
Maximum | |
Significant Accounting Policies | |
Estimated useful lives (in years) | 10 years |
Acquisitions - Security Califor
Acquisitions - Security California Bancorp - Narrative (Details) $ / shares in Units, $ in Thousands | Jan. 31, 2016USD ($)bankshares | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | Jan. 29, 2016USD ($)$ / shares |
Business Acquisition [Line Items] | |||||
Assets | $ 4,174,428 | $ 4,036,311 | |||
Total gross loans | 3,382,447 | 3,245,694 | |||
Deposits | $ 3,297,073 | 3,145,581 | |||
Closing stock price of common stock ($ per share) | $ / shares | $ 38.55 | $ 20.53 | |||
Goodwill | $ 102,490 | $ 102,490 | |||
Adjustment | $ 146 | ||||
Security California Bancorp | |||||
Business Acquisition [Line Items] | |||||
Assets | $ 714,000 | ||||
Total gross loans | 456,000 | ||||
Deposits | $ 637,000 | ||||
Equity issued (shares) | 0.9629 | ||||
Consideration paid | $ 120,174 | ||||
Cash consideration | $ 788 | ||||
Number Of branches | bank | 6 | ||||
Goodwill | $ 51,658 | ||||
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 | $ 119,000 |
Acquisitions - Security Calif29
Acquisitions - Security California Bancorp table (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 102,490 | $ 102,490 | |
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 | 4,190 | ||
Core deposit intangible | 4,319 | ||
Deferred income taxes | 6,748 | ||
Other assets | 9,362 | ||
Total assets acquired | 713,950 | ||
Deposits | 636,591 | ||
Other Liabilities | 8,843 | ||
Total liabilities assumed | 645,434 | ||
Excess of assets acquired over liabilities assumed | 68,516 | ||
Consideration paid | 120,174 | ||
Goodwill | 51,658 | ||
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 | (1,145) | ||
Core deposit intangible | 3,826 | ||
Deferred income taxes | 1,130 | ||
Other assets | (1,227) | ||
Total assets acquired | (2,683) | ||
Deposits | 141 | ||
Other Liabilities | (220) | ||
Total liabilities assumed | (79) | ||
Excess of assets acquired over liabilities assumed | $ (2,604) |
Acquisitions - Loan Information
Acquisitions - Loan Information (Details) - Acquired Loans - Security California Bancorp $ in Thousands | Mar. 31, 2017USD ($) |
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 | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Combinations [Abstract] | ||
Net interest and other income | $ 43,884 | $ 40,090 |
Net income | $ 9,521 | $ 6,583 |
Basic earnings per share (in dollars per share) | $ 0.35 | $ 0.26 |
Diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.25 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Total investment securities | ||
Amortized Cost | $ 446,652 | $ 394,227 |
Unrealized Gain | 1,614 | 804 |
Unrealized Loss | (4,711) | (5,607) |
Estimated Fair Value | 443,555 | 389,424 |
Available for sale: | ||
Total | 438,380 | 385,662 |
Unrealized Gain | 1,614 | 804 |
Unrealized Loss | (4,586) | (5,503) |
Investment securities available-for-sale, at fair value | 435,408 | 380,963 |
Held to maturity: | ||
Amortized Cost | 8,272 | 8,565 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (125) | (104) |
Estimated Fair Value | 8,147 | 8,461 |
Corporate | ||
Available for sale: | ||
Total | 53,523 | 37,475 |
Unrealized Gain | 838 | 372 |
Unrealized Loss | (173) | (205) |
Investment securities available-for-sale, at fair value | 54,188 | 37,642 |
Municipal bonds | ||
Available for sale: | ||
Total | 129,366 | 120,155 |
Unrealized Gain | 605 | 338 |
Unrealized Loss | (1,189) | (1,690) |
Investment securities available-for-sale, at fair value | 128,782 | 118,803 |
Collateralized mortgage obligation: residential | ||
Available for sale: | ||
Total | 30,145 | 31,536 |
Unrealized Gain | 45 | 25 |
Unrealized Loss | (187) | (173) |
Investment securities available-for-sale, at fair value | 30,003 | 31,388 |
Mortgage-backed securities | ||
Available for sale: | ||
Total | 225,346 | 196,496 |
Unrealized Gain | 126 | 69 |
Unrealized Loss | (3,037) | (3,435) |
Investment securities available-for-sale, at fair value | 222,435 | 193,130 |
Held to maturity: | ||
Amortized Cost | 7,095 | 7,375 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (125) | (104) |
Estimated Fair Value | 6,970 | 7,271 |
Other | ||
Held to maturity: | ||
Amortized Cost | 1,177 | 1,190 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | $ 1,177 | $ 1,190 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)purchase_agreement | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)purchase_agreement | |
Investment Securities | ||||
Number of inverse putable reverse repurchase of the Bank's secured by collateral | purchase_agreement | 3 | 3 | ||
Value of inverse putable reverse repurchases secured by collateral | $ 28,500,000 | $ 28,500,000 | $ 28,500,000 | |
Other-than-temporary-impairment recovery/(loss) on securities | 1,000 | 0 | $ (207,000) | |
Book value | 435,408,000 | 380,963,000 | 380,963,000 | |
Accumulated other comprehensive income (loss) before tax amount | (3,000,000) | (4,699,000) | (4,699,000) | |
Accumulated other comprehensive income, net of tax | (1,708,000) | (2,721,000) | (2,721,000) | |
Gross gains | 762,000 | |||
Gross losses | 0 | 0 | 9,000 | |
Proceeds from sale or maturity of securities available for sale | 0 | 0 | 186,000,000 | |
FHLB stock | 14,400,000 | |||
FRB stock | 10,900,000 | |||
Other stock | 12,500,000 | |||
Realized OTTI losses | 0 | |||
HOA | ||||
Investment Securities | ||||
Value of inverse putable reverse repurchases secured by collateral | 22,900,000 | 21,500,000 | 21,500,000 | |
Mortgage-backed securities | ||||
Investment Securities | ||||
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 66,000,000 | 63,600,000 | 63,600,000 | |
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $ 67,800,000 | $ 65,300,000 | $ 65,300,000 | |
CRA | ||||
Investment Securities | ||||
Other-than-temporary-impairment recovery/(loss) on securities | (207,000) | |||
Par value | 50 | |||
Book value | $ 500,000 |
Investment Securities - Investm
Investment Securities - Investment Category and Length of Time (Details) $ in Thousands | Mar. 31, 2017USD ($)investment_security | Dec. 31, 2016USD ($)investment_security |
Less than 12 months | ||
Number | investment_security | 155 | 215 |
Fair Value | $ 246,564 | $ 262,191 |
Gross Unrealized Holding Losses | $ (4,197) | $ (4,984) |
12 months or Longer | ||
Number | investment_security | 6 | 4 |
Fair Value | $ 20,105 | $ 16,039 |
Gross Unrealized Holding Losses | $ (389) | $ (519) |
Total | ||
Number | investment_security | 161 | 219 |
Fair Value | $ 266,669 | $ 278,230 |
Gross Unrealized Holding Losses | $ (4,586) | $ (5,503) |
Held-to-maturity, less than 12 months, number of securities | investment_security | 1 | 1 |
Held-to-maturity, less than 12 months, fair value | $ 6,970 | $ 7,271 |
Held-to-maturity, less than 12 months, gross unrealized holding losses | $ (125) | $ (104) |
Held-to-maturity, 12 months or longer, number of securities | investment_security | 0 | 0 |
Held-to-maturity, 12 months or longer, fair value | $ 0 | $ 0 |
Held-to-maturity, 12 months or longer, gross unrealized holding losses | $ 0 | $ 0 |
Held-to-maturity, number of securities | investment_security | 1 | 1 |
Held-to-maturity securities, fair value | $ 6,970 | $ 7,271 |
Unrealized Loss | $ 125 | $ 104 |
Total securities, less than 12 months, number of securities | investment_security | 156 | 216 |
Total securities, less than 12 months, fair value | $ 253,534 | $ 269,462 |
Total securities, less than 12 months, gross unrealized holding losses | $ 4,322 | $ 5,088 |
Total securities, 12 months or longer, number of securities | investment_security | 6 | 4 |
Total securities, 12 months or longer, fair value | $ 20,105 | $ 16,039 |
Total securities, 12 months or longer, gross unrealized holding losses | $ 389 | $ 519 |
Total securities, number of securities | investment_security | 162 | 220 |
Total securities, fair value | $ 273,639 | $ 285,501 |
Total securities, gross unrealized holding losses | $ 4,711 | $ 5,607 |
Corporate | ||
Less than 12 months | ||
Number | investment_security | 3 | 3 |
Fair Value | $ 7,629 | $ 7,609 |
Gross Unrealized Holding Losses | $ (173) | $ (205) |
12 months or Longer | ||
Number | investment_security | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Gross Unrealized Holding Losses | $ 0 | $ 0 |
Total | ||
Number | investment_security | 3 | 3 |
Fair Value | $ 7,629 | $ 7,609 |
Gross Unrealized Holding Losses | $ (173) | $ (205) |
Municipal bonds | ||
Less than 12 months | ||
Number | investment_security | 90 | 152 |
Fair Value | $ 53,419 | $ 85,750 |
Gross Unrealized Holding Losses | $ (1,189) | $ (1,690) |
12 months or Longer | ||
Number | investment_security | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Gross Unrealized Holding Losses | $ 0 | $ 0 |
Total | ||
Number | investment_security | 90 | 152 |
Fair Value | $ 53,419 | $ 85,750 |
Gross Unrealized Holding Losses | $ (1,189) | $ (1,690) |
Collateralized mortgage obligation: residential | ||
Less than 12 months | ||
Number | investment_security | 5 | 5 |
Fair Value | $ 17,032 | $ 19,092 |
Gross Unrealized Holding Losses | $ (187) | $ (173) |
12 months or Longer | ||
Number | investment_security | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Gross Unrealized Holding Losses | $ 0 | $ 0 |
Total | ||
Number | investment_security | 5 | 5 |
Fair Value | $ 17,032 | $ 19,092 |
Gross Unrealized Holding Losses | $ (187) | $ (173) |
Mortgage-backed securities | ||
Less than 12 months | ||
Number | investment_security | 57 | 55 |
Fair Value | $ 168,484 | $ 149,740 |
Gross Unrealized Holding Losses | $ (2,648) | $ (2,916) |
12 months or Longer | ||
Number | investment_security | 6 | 4 |
Fair Value | $ 20,105 | $ 16,039 |
Gross Unrealized Holding Losses | $ (389) | $ (519) |
Total | ||
Number | investment_security | 63 | 59 |
Fair Value | $ 188,589 | $ 165,779 |
Gross Unrealized Holding Losses | $ (3,037) | $ (3,435) |
Held-to-maturity, less than 12 months, number of securities | investment_security | 1 | 1 |
Held-to-maturity, less than 12 months, fair value | $ 6,970 | $ 7,271 |
Held-to-maturity, less than 12 months, gross unrealized holding losses | $ (125) | $ (104) |
Held-to-maturity, 12 months or longer, number of securities | investment_security | 0 | 0 |
Held-to-maturity, 12 months or longer, fair value | $ 0 | $ 0 |
Held-to-maturity, 12 months or longer, gross unrealized holding losses | $ 0 | $ 0 |
Held-to-maturity, number of securities | investment_security | 1 | 1 |
Held-to-maturity securities, fair value | $ 6,970 | $ 7,271 |
Unrealized Loss | $ 125 | $ 104 |
Investment Securities - By Cont
Investment Securities - By Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
One Year or Less | $ 1,841 | |
More than One Year to Five Years | 28,985 | |
More than Five Years to Ten Years | 127,771 | |
More than Ten Years | 288,055 | |
Total | 446,652 | |
Fair Value | ||
One Year or Less | 1,841 | |
More than One Year to Five Years | 29,057 | |
More than Five Years to Ten Years | 127,907 | |
More than Ten Years | 284,750 | |
Total | 443,555 | |
Amortized Cost | ||
One Year or Less | 1,841 | |
More than One Year to Five Years | 28,985 | |
More than Five Years to Ten Years | 127,771 | |
More than Ten Years | 279,783 | |
Total | 438,380 | $ 385,662 |
Fair Value | ||
One Year or Less | 1,841 | |
More than One Year to Five Years | 29,057 | |
More than Five Years to Ten Years | 127,907 | |
More than Ten Years | 276,603 | |
Total | 435,408 | 380,963 |
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 | 8,272 | |
Amortized Cost | 8,272 | 8,565 |
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 | 8,147 | |
Total | 8,147 | 8,461 |
Corporate | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 45,523 | |
More than Ten Years | 8,000 | |
Total | 53,523 | 37,475 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 46,188 | |
More than Ten Years | 8,000 | |
Total | 54,188 | 37,642 |
Municipal bonds | ||
Amortized Cost | ||
One Year or Less | 1,841 | |
More than One Year to Five Years | 26,585 | |
More than Five Years to Ten Years | 48,823 | |
More than Ten Years | 52,117 | |
Total | 129,366 | 120,155 |
Fair Value | ||
One Year or Less | 1,841 | |
More than One Year to Five Years | 26,672 | |
More than Five Years to Ten Years | 48,411 | |
More than Ten Years | 51,858 | |
Total | 128,782 | 118,803 |
Collateralized mortgage obligation: residential | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 1,308 | |
More than Ten Years | 28,837 | |
Total | 30,145 | 31,536 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 1,310 | |
More than Ten Years | 28,693 | |
Total | 30,003 | 31,388 |
Mortgage-backed securities | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 2,400 | |
More than Five Years to Ten Years | 32,117 | |
More than Ten Years | 190,829 | |
Total | 225,346 | 196,496 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 2,385 | |
More than Five Years to Ten Years | 31,998 | |
More than Ten Years | 188,052 | |
Total | 222,435 | 193,130 |
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 | 7,095 | |
Amortized Cost | 7,095 | 7,375 |
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 | 6,970 | |
Total | 6,970 | $ 7,271 |
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 | 1,177 | |
Amortized Cost | 1,177 | |
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 | 1,177 | |
Total | $ 1,177 |
Loans Held for Investment - Com
Loans Held for Investment - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Loans Held for Investment | ||||
Gross loans | $ 3,393,537 | $ 3,245,694 | $ 2,850,494 | |
Total gross loans | 3,382,447 | 3,245,694 | ||
Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net | 3,250 | 3,630 | ||
Total loans | 3,396,787 | 3,249,324 | ||
Less: loans held for sale, at lower of cost or fair value | 11,090 | 7,711 | ||
Loans held for investment | 3,385,697 | 3,241,613 | ||
Allowance for loan losses | (23,075) | (21,296) | (18,455) | $ (17,317) |
Loans held for investment, net | 3,362,622 | 3,220,317 | ||
Unaccreted mark-to-market discount | (6,400) | |||
Commercial and industrial | ||||
Loans Held for Investment | ||||
Gross loans | 593,457 | 563,169 | 491,112 | |
Total gross loans | 593,457 | 563,169 | ||
Allowance for loan losses | (6,949) | (6,362) | (3,023) | (3,449) |
Franchise | ||||
Loans Held for Investment | ||||
Gross loans | 493,158 | 459,421 | 371,875 | |
Total gross loans | 493,158 | 459,421 | ||
Allowance for loan losses | (4,474) | (3,845) | (3,568) | (3,124) |
Commercial owner occupied | ||||
Loans Held for Investment | ||||
Gross loans | 482,295 | 454,918 | 424,289 | |
Total gross loans | 482,295 | 454,918 | ||
Allowance for loan losses | (1,232) | (1,193) | (1,965) | (1,870) |
SBA | ||||
Loans Held for Investment | ||||
Gross loans | 107,233 | 96,705 | 71,069 | |
Total gross loans | 96,486 | 96,705 | ||
Allowance for loan losses | (1,145) | (1,039) | (1,628) | (1,500) |
Commercial non-owner occupied | ||||
Loans Held for Investment | ||||
Gross loans | 612,787 | 586,975 | 522,080 | |
Total gross loans | 612,444 | 586,975 | ||
Allowance for loan losses | (1,847) | (1,715) | (1,897) | (2,048) |
Multi-family | ||||
Loans Held for Investment | ||||
Gross loans | 682,237 | 690,955 | 619,485 | |
Total gross loans | 682,237 | 690,955 | ||
Allowance for loan losses | (2,803) | (2,927) | (2,932) | (1,583) |
One-to-four family | ||||
Loans Held for Investment | ||||
Gross loans | 100,423 | 100,451 | 106,854 | |
Total gross loans | 100,423 | 100,451 | ||
Allowance for loan losses | (373) | (365) | (705) | (698) |
Construction | ||||
Loans Held for Investment | ||||
Gross loans | 298,279 | 269,159 | 218,069 | |
Total gross loans | 298,279 | 269,159 | ||
Allowance for loan losses | (4,027) | (3,632) | (2,504) | (2,030) |
Land | ||||
Loans Held for Investment | ||||
Gross loans | 19,738 | 19,829 | 18,222 | |
Total gross loans | 19,738 | 19,829 | ||
Allowance for loan losses | (204) | (198) | (204) | (233) |
Other loans | ||||
Loans Held for Investment | ||||
Gross loans | 3,930 | 4,112 | 6,045 | |
Total gross loans | 3,930 | 4,112 | ||
Allowance for loan losses | $ (21) | $ (20) | $ (22) | $ (23) |
Loans Held for Investment - Nar
Loans Held for Investment - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)areagrade | Dec. 31, 2016USD ($) | |
Receivables [Abstract] | ||
Secured loans limit to one borrower | $ 137,600,000 | |
Unsecured loans limit to one borrower | 82,600,000 | |
Aggregate outstanding balance of loans to one borrower of secured credit | 33,000,000 | |
Outstanding balance | 4,371,000 | $ 4,559,000 |
Purchased credit impaired loans, nonaccrual status | 0 | |
Nonaccruing loans | 513,000 | 1,141,000 |
Consumer mortgage loans collaterlized by residential real estate, foreclosure proceedings in process | $ 41,000 | $ 41,000 |
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) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Loans Held for Investment | ||
Total purchase credit impaired | $ 4,371 | $ 4,559 |
Commercial and industrial | ||
Loans Held for Investment | ||
Total purchase credit impaired | 2,536 | 2,586 |
Commercial owner occupied | ||
Loans Held for Investment | ||
Total purchase credit impaired | 481 | 491 |
Commercial non-owner occupied | ||
Loans Held for Investment | ||
Total purchase credit impaired | 1,036 | 1,088 |
One-to-four family | ||
Loans Held for Investment | ||
Total purchase credit impaired | 0 | 1 |
Other loans | ||
Loans Held for Investment | ||
Total purchase credit impaired | $ 318 | $ 393 |
Loans Held for Investment - Acc
Loans Held for Investment - Accretable Yield Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Accretable yield on purchased credit impaired | |||
Balance at the beginning of period | $ 3,747 | $ 2,726 | $ 3,254 |
Additions | 0 | 788 | 0 |
Accretion | (629) | (129) | (432) |
Payoffs | 0 | (323) | (113) |
Reclassification from (to) nonaccretable difference | 483 | 192 | 1,038 |
Balance at the end of period | $ 3,601 | $ 3,254 | $ 3,747 |
Loans Held for Investment - C40
Loans Held for Investment - Company's Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Impaired Loans | |||
Contractual Unpaid Principal Balance | $ 2,882 | $ 7,029 | |
Total impaired loans | 513 | 1,141 | |
With Specific Allowance | 0 | 250 | |
Without Specific Allowance | 513 | 891 | |
Specific Allowance for Impaired Loans | 0 | 250 | $ 731 |
Average Recorded Investment | 829 | 4,377 | 2,892 |
Interest Income Recognized | 17 | 124 | 49 |
Commercial and industrial | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 1,990 | ||
Total impaired loans | 250 | ||
With Specific Allowance | 250 | ||
Without Specific Allowance | 0 | ||
Specific Allowance for Impaired Loans | 0 | 250 | 0 |
Average Recorded Investment | 200 | 1,410 | 308 |
Interest Income Recognized | 5 | 47 | 5 |
Franchise | |||
Impaired Loans | |||
Specific Allowance for Impaired Loans | 0 | 731 | |
Average Recorded Investment | 0 | 0 | 1,629 |
Interest Income Recognized | 0 | 0 | 27 |
Commercial owner occupied | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 118 | 847 | |
Total impaired loans | 86 | 436 | |
With Specific Allowance | 0 | 0 | |
Without Specific Allowance | 86 | 436 | |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 192 | 493 | 518 |
Interest Income Recognized | 3 | 10 | 9 |
SBA | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 2,442 | 3,865 | |
Total impaired loans | 298 | 316 | |
With Specific Allowance | 0 | 0 | |
Without Specific Allowance | 298 | 316 | |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 307 | 672 | 23 |
Interest Income Recognized | 5 | 13 | 0 |
Commercial non-owner occupied | |||
Impaired Loans | |||
Specific Allowance for Impaired Loans | 0 | 0 | |
Average Recorded Investment | 0 | 1,658 | 143 |
Interest Income Recognized | 0 | 49 | 2 |
One-to-four family | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 286 | 291 | |
Total impaired loans | 115 | 124 | |
With Specific Allowance | 0 | 0 | |
Without Specific Allowance | 115 | 124 | |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 116 | 128 | 251 |
Interest Income Recognized | 3 | 4 | 5 |
Land | |||
Impaired Loans | |||
Contractual Unpaid Principal Balance | 36 | 36 | |
Total impaired loans | 14 | 15 | |
With Specific Allowance | 0 | 0 | |
Without Specific Allowance | 14 | 15 | |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 14 | 16 | 20 |
Interest Income Recognized | $ 1 | $ 1 | $ 1 |
Loans Held for Investment - C41
Loans Held for Investment - Components of Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Nonaccruing loans | $ 513 | $ 1,141 |
Accruing loans | 0 | 0 |
Total impaired loans | $ 513 | $ 1,141 |
Loans Held for Investment - Int
Loans Held for Investment - Internal Risk Grading System (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Credit Risk Grades | |||
Totals | $ 3,382,447 | $ 3,245,694 | |
Gross loans | 3,393,537 | 3,245,694 | $ 2,850,494 |
Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 593,457 | 563,169 | |
Gross loans | 593,457 | 563,169 | 491,112 |
Franchise | |||
Credit Risk Grades | |||
Totals | 493,158 | 459,421 | |
Gross loans | 493,158 | 459,421 | 371,875 |
Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 482,295 | 454,918 | |
Gross loans | 482,295 | 454,918 | 424,289 |
SBA | |||
Credit Risk Grades | |||
Totals | 96,486 | 96,705 | |
Gross loans | 107,233 | 96,705 | 71,069 |
Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 612,444 | 586,975 | |
Gross loans | 612,787 | 586,975 | 522,080 |
Multi-family | |||
Credit Risk Grades | |||
Totals | 682,237 | 690,955 | |
Gross loans | 682,237 | 690,955 | 619,485 |
One-to-four family | |||
Credit Risk Grades | |||
Totals | 100,423 | 100,451 | |
Gross loans | 100,423 | 100,451 | 106,854 |
Construction | |||
Credit Risk Grades | |||
Totals | 298,279 | 269,159 | |
Gross loans | 298,279 | 269,159 | 218,069 |
Land | |||
Credit Risk Grades | |||
Totals | 19,738 | 19,829 | |
Gross loans | 19,738 | 19,829 | 18,222 |
Other loans | |||
Credit Risk Grades | |||
Totals | 3,930 | 4,112 | |
Gross loans | 3,930 | 4,112 | $ 6,045 |
Pass | |||
Credit Risk Grades | |||
Totals | 3,371,129 | 3,216,683 | |
Pass | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 579,569 | 550,919 | |
Pass | Franchise | |||
Credit Risk Grades | |||
Totals | 493,158 | 459,421 | |
Pass | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 477,109 | 450,416 | |
Pass | SBA | |||
Credit Risk Grades | |||
Totals | 106,644 | 96,190 | |
Pass | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 611,357 | 585,093 | |
Pass | Multi-family | |||
Credit Risk Grades | |||
Totals | 681,690 | 681,942 | |
Pass | One-to-four family | |||
Credit Risk Grades | |||
Totals | 99,992 | 100,010 | |
Pass | Construction | |||
Credit Risk Grades | |||
Totals | 298,279 | 269,159 | |
Pass | Land | |||
Credit Risk Grades | |||
Totals | 19,724 | 19,814 | |
Pass | Other loans | |||
Credit Risk Grades | |||
Totals | 3,607 | 3,719 | |
Special Mention | |||
Credit Risk Grades | |||
Totals | 11,186 | 15,970 | |
Special Mention | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 9,365 | 8,216 | |
Special Mention | Franchise | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Special Mention | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 997 | 281 | |
Special Mention | SBA | |||
Credit Risk Grades | |||
Totals | 18 | 53 | |
Special Mention | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 806 | 810 | |
Special Mention | Multi-family | |||
Credit Risk Grades | |||
Totals | 0 | 6,610 | |
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 | 11,222 | 12,791 | |
Substandard | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 4,523 | 3,784 | |
Substandard | Franchise | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Substandard | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 4,189 | 4,221 | |
Substandard | SBA | |||
Credit Risk Grades | |||
Totals | 571 | 462 | |
Substandard | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Totals | 624 | 1,072 | |
Substandard | Multi-family | |||
Credit Risk Grades | |||
Totals | 547 | 2,403 | |
Substandard | One-to-four family | |||
Credit Risk Grades | |||
Totals | 431 | 441 | |
Substandard | Construction | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Substandard | Land | |||
Credit Risk Grades | |||
Totals | 14 | 15 | |
Substandard | Other loans | |||
Credit Risk Grades | |||
Totals | 323 | 393 | |
Doubtful | |||
Credit Risk Grades | |||
Totals | 0 | 250 | |
Doubtful | Commercial and industrial | |||
Credit Risk Grades | |||
Totals | 0 | 250 | |
Doubtful | Franchise | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | Commercial owner occupied | |||
Credit Risk Grades | |||
Totals | 0 | 0 | |
Doubtful | SBA | |||
Credit Risk Grades | |||
Totals | 0 | 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) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Other information concerning the credit quality | |||
Gross loans | $ 3,393,537 | $ 3,245,694 | $ 2,850,494 |
Totals | 3,382,447 | 3,245,694 | |
Non-Accruing | 513 | 1,141 | |
Commercial and industrial | |||
Other information concerning the credit quality | |||
Gross loans | 593,457 | 563,169 | 491,112 |
Totals | 593,457 | 563,169 | |
Non-Accruing | 0 | 250 | |
Franchise | |||
Other information concerning the credit quality | |||
Gross loans | 493,158 | 459,421 | 371,875 |
Totals | 493,158 | 459,421 | |
Non-Accruing | 0 | 0 | |
Commercial owner occupied | |||
Other information concerning the credit quality | |||
Gross loans | 482,295 | 454,918 | 424,289 |
Totals | 482,295 | 454,918 | |
Non-Accruing | 86 | 436 | |
SBA | |||
Other information concerning the credit quality | |||
Gross loans | 107,233 | 96,705 | 71,069 |
Totals | 96,486 | 96,705 | |
Non-Accruing | 298 | 316 | |
Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Gross loans | 612,787 | 586,975 | 522,080 |
Totals | 612,444 | 586,975 | |
Non-Accruing | 0 | 0 | |
Multi-family | |||
Other information concerning the credit quality | |||
Gross loans | 682,237 | 690,955 | 619,485 |
Totals | 682,237 | 690,955 | |
Non-Accruing | 0 | 0 | |
One-to-four family | |||
Other information concerning the credit quality | |||
Gross loans | 100,423 | 100,451 | 106,854 |
Totals | 100,423 | 100,451 | |
Non-Accruing | 115 | 124 | |
Construction | |||
Other information concerning the credit quality | |||
Gross loans | 298,279 | 269,159 | 218,069 |
Totals | 298,279 | 269,159 | |
Non-Accruing | 0 | 0 | |
Land | |||
Other information concerning the credit quality | |||
Gross loans | 19,738 | 19,829 | 18,222 |
Totals | 19,738 | 19,829 | |
Non-Accruing | 14 | 15 | |
Other loans | |||
Other information concerning the credit quality | |||
Gross loans | 3,930 | 4,112 | $ 6,045 |
Totals | 3,930 | 4,112 | |
Non-Accruing | 0 | 0 | |
Current | |||
Other information concerning the credit quality | |||
Current | 3,393,060 | 3,244,862 | |
Current | Commercial and industrial | |||
Other information concerning the credit quality | |||
Current | 593,375 | 562,805 | |
Current | Franchise | |||
Other information concerning the credit quality | |||
Current | 493,158 | 459,421 | |
Current | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Current | 482,260 | 454,918 | |
Current | SBA | |||
Other information concerning the credit quality | |||
Current | 106,936 | 96,389 | |
Current | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Current | 612,787 | 586,975 | |
Current | Multi-family | |||
Other information concerning the credit quality | |||
Current | 682,237 | 690,955 | |
Current | One-to-four family | |||
Other information concerning the credit quality | |||
Current | 100,374 | 100,314 | |
Current | Construction | |||
Other information concerning the credit quality | |||
Current | 298,279 | 269,159 | |
Current | Land | |||
Other information concerning the credit quality | |||
Current | 19,724 | 19,814 | |
Current | Other loans | |||
Other information concerning the credit quality | |||
Current | 3,930 | 4,112 | |
30-59 | |||
Other information concerning the credit quality | |||
Days Past Due | 117 | 122 | |
30-59 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 82 | 104 | |
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 | 35 | 0 | |
30-59 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
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 | 18 | |
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 | 0 | 71 | |
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 | 0 | |
60-89 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 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 | 71 | |
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 | 360 | 639 | |
90 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 260 | |
90 | Franchise | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
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 | 297 | 316 | |
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 | 49 | 48 | |
90 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 14 | 15 | |
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 | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 21,296 | $ 17,317 | |
Charge-offs | (760) | 0 | |
Recoveries | 37 | 18 | |
Provisions for (reduction in) loan losses | 2,502 | $ 2,054 | 1,120 |
Balance, at the end of the period | 23,075 | 21,296 | 18,455 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 250 | 731 |
Amount of allowance attributed to: General portfolio allocation | 23,075 | 17,724 | |
Loans individually evaluated for impairment | $ 513 | $ 3,054 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 23.94% | |
Loans collectively evaluated for impairment | $ 3,381,934 | $ 2,847,440 | |
General reserves to total loans collectively evaluated for impairment | 0.68% | 0.62% | |
Total gross loans | $ 3,382,447 | 3,245,694 | |
Gross loans | $ 3,393,537 | 3,245,694 | $ 2,850,494 |
Total allowance to gross loans | 0.68% | 0.65% | |
Commercial and industrial | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 6,362 | $ 3,449 | |
Charge-offs | (752) | 0 | |
Recoveries | 22 | 14 | |
Provisions for (reduction in) loan losses | 1,317 | (440) | |
Balance, at the end of the period | 6,949 | 6,362 | 3,023 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 250 | 0 |
Amount of allowance attributed to: General portfolio allocation | 6,949 | 3,023 | |
Loans individually evaluated for impairment | $ 0 | $ 306 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 593,457 | $ 490,806 | |
General reserves to total loans collectively evaluated for impairment | 1.17% | 0.62% | |
Total gross loans | $ 593,457 | 563,169 | |
Gross loans | $ 593,457 | 563,169 | $ 491,112 |
Total allowance to gross loans | 1.17% | 0.62% | |
Franchise | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 3,845 | $ 3,124 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 629 | 444 | |
Balance, at the end of the period | 4,474 | 3,845 | 3,568 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 731 | |
Amount of allowance attributed to: General portfolio allocation | 4,474 | 2,837 | |
Loans individually evaluated for impairment | $ 0 | $ 1,630 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 44.85% | |
Loans collectively evaluated for impairment | $ 493,158 | $ 370,245 | |
General reserves to total loans collectively evaluated for impairment | 0.91% | 0.77% | |
Total gross loans | $ 493,158 | 459,421 | |
Gross loans | $ 493,158 | 459,421 | $ 371,875 |
Total allowance to gross loans | 0.91% | 0.96% | |
Commercial owner occupied | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 1,193 | $ 1,870 | |
Charge-offs | 0 | 0 | |
Recoveries | 12 | 0 | |
Provisions for (reduction in) loan losses | 27 | 95 | |
Balance, at the end of the period | 1,232 | 1,193 | 1,965 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 |
Amount of allowance attributed to: General portfolio allocation | 1,232 | 1,965 | |
Loans individually evaluated for impairment | $ 86 | $ 507 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 482,209 | $ 423,782 | |
General reserves to total loans collectively evaluated for impairment | 0.26% | 0.46% | |
Total gross loans | $ 482,295 | 454,918 | |
Gross loans | $ 482,295 | 454,918 | $ 424,289 |
Total allowance to gross loans | 0.26% | 0.46% | |
SBA | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 1,039 | $ 1,500 | |
Charge-offs | (8) | 0 | |
Recoveries | 2 | 3 | |
Provisions for (reduction in) loan losses | 112 | 125 | |
Balance, at the end of the period | 1,145 | 1,039 | 1,628 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 |
Amount of allowance attributed to: General portfolio allocation | 1,145 | 1,628 | |
Loans individually evaluated for impairment | $ 298 | $ 69 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 96,188 | $ 71,000 | |
General reserves to total loans collectively evaluated for impairment | 1.19% | 2.29% | |
Total gross loans | $ 96,486 | 96,705 | |
Gross loans | $ 107,233 | 96,705 | $ 71,069 |
Total allowance to gross loans | 1.19% | 2.29% | |
Warehouse facilities | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 0 | $ 759 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 0 | (752) | |
Balance, at the end of the period | 0 | 0 | 7 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 0 | 7 | |
Loans individually evaluated for impairment | $ 0 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 0 | $ 1,394 | |
General reserves to total loans collectively evaluated for impairment | 0.00% | 0.50% | |
Total gross loans | $ 0 | ||
Gross loans | $ 1,394 | ||
Total allowance to gross loans | 0.00% | 0.50% | |
Commercial non-owner occupied | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 1,715 | $ 2,048 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 132 | (151) | |
Balance, at the end of the period | 1,847 | 1,715 | 1,897 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 1,847 | 1,897 | |
Loans individually evaluated for impairment | $ 0 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 612,444 | $ 522,080 | |
General reserves to total loans collectively evaluated for impairment | 0.30% | 0.36% | |
Total gross loans | $ 612,444 | 586,975 | |
Gross loans | $ 612,787 | 586,975 | $ 522,080 |
Total allowance to gross loans | 0.30% | 0.36% | |
Multi-family | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 2,927 | $ 1,583 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | (124) | 1,349 | |
Balance, at the end of the period | 2,803 | 2,927 | 2,932 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 2,803 | 2,932 | |
Loans individually evaluated for impairment | $ 0 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 682,237 | $ 619,485 | |
General reserves to total loans collectively evaluated for impairment | 0.41% | 0.47% | |
Total gross loans | $ 682,237 | 690,955 | |
Gross loans | $ 682,237 | 690,955 | $ 619,485 |
Total allowance to gross loans | 0.41% | 0.47% | |
One-to-four family | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 365 | $ 698 | |
Charge-offs | 0 | 0 | |
Recoveries | 1 | 1 | |
Provisions for (reduction in) loan losses | 7 | 6 | |
Balance, at the end of the period | 373 | 365 | 705 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 |
Amount of allowance attributed to: General portfolio allocation | 373 | 705 | |
Loans individually evaluated for impairment | $ 115 | $ 523 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 100,308 | $ 106,331 | |
General reserves to total loans collectively evaluated for impairment | 0.37% | 0.66% | |
Total gross loans | $ 100,423 | 100,451 | |
Gross loans | $ 100,423 | 100,451 | $ 106,854 |
Total allowance to gross loans | 0.37% | 0.66% | |
Construction | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 3,632 | $ 2,030 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 395 | 474 | |
Balance, at the end of the period | 4,027 | 3,632 | 2,504 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 4,027 | 2,504 | |
Loans individually evaluated for impairment | $ 0 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 298,279 | $ 218,069 | |
General reserves to total loans collectively evaluated for impairment | 1.35% | 1.15% | |
Total gross loans | $ 298,279 | 269,159 | |
Gross loans | $ 298,279 | 269,159 | $ 218,069 |
Total allowance to gross loans | 1.35% | 1.15% | |
Land | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 198 | $ 233 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 6 | (29) | |
Balance, at the end of the period | 204 | 198 | 204 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 |
Amount of allowance attributed to: General portfolio allocation | 204 | 204 | |
Loans individually evaluated for impairment | $ 14 | $ 19 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 19,724 | $ 18,203 | |
General reserves to total loans collectively evaluated for impairment | 1.03% | 1.12% | |
Total gross loans | $ 19,738 | 19,829 | |
Gross loans | $ 19,738 | 19,829 | $ 18,222 |
Total allowance to gross loans | 1.03% | 1.12% | |
Other loans | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 20 | $ 23 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 1 | (1) | |
Balance, at the end of the period | 21 | 20 | 22 |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 21 | 22 | |
Loans individually evaluated for impairment | $ 0 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 3,930 | $ 6,045 | |
General reserves to total loans collectively evaluated for impairment | 0.53% | 0.36% | |
Total gross loans | $ 3,930 | 4,112 | |
Gross loans | $ 3,930 | $ 4,112 | $ 6,045 |
Total allowance to gross loans | 0.53% | 0.36% | |
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) | 87 months |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2014 | Mar. 31, 2004 | Mar. 31, 2017 | |
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) | 3.77% | ||
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 | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Stock options excluded (in shares) | 0 | 0 | 108,407 |
Net Income | |||
Basic income available to common stockholders | $ 9,521 | $ 11,953 | $ 8,554 |
Diluted income available to common stockholders plus assumed conversions | $ 9,521 | $ 11,953 | $ 8,554 |
Shares | |||
Basic income available to common stockholders (in shares) | 27,528,940 | 27,394,737 | 25,555,654 |
Effect of dilutive stock options and warrants (in shares) | 668,280 | 632,742 | 396,530 |
Diluted income available to common stockholders plus assumed conversions (in shares) | 28,197,220 | 28,027,479 | 25,952,184 |
Per Share Amount | |||
Basic income available to common stockholders (in dollars per share) | $ 0.35 | $ 0.44 | $ 0.33 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $ 0.34 | $ 0.43 | $ 0.33 |
Fair Value of Financial Instr47
Fair Value of Financial Instruments - Fair Value Estimates (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Investments held-to-maturity | $ 8,147 | $ 8,461 |
Investment securities available-for-sale, at fair value | 435,408 | 380,963 |
Accrued interest receivable | 13,366 | 13,145 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 100,513 | 156,857 |
Investments held-to-maturity | 0 | 0 |
Investment securities available-for-sale, at fair value | 0 | 0 |
Loans held for sale, net | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 13,366 | 13,145 |
Liabilities: | ||
Deposit accounts | 2,439,584 | 2,330,579 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 286 | 263 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investments held-to-maturity | 8,147 | 8,461 |
Investment securities available-for-sale, at fair value | 435,408 | 380,963 |
Loans held for sale, net | 11,969 | 8,405 |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposit accounts | 597,500 | 573,467 |
FHLB advances | 259,917 | 277,935 |
Other borrowings | 52,126 | 50,905 |
Subordinated debentures | 70,104 | 69,982 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investments held-to-maturity | 0 | |
Investment securities available-for-sale, at fair value | 0 | 0 |
Loans held for sale, net | 0 | 0 |
Loans held for investment, net | 3,347,355 | 3,211,154 |
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 | 100,513 | 156,857 |
Investments held-to-maturity | 8,272 | 8,565 |
Investment securities available-for-sale, at fair value | 435,408 | 380,963 |
Federal Reserve Bank and FHLB stock, at cost | 37,811 | 37,304 |
Loans held for sale, net | 11,090 | 7,711 |
Loans held for investment, net | 3,362,622 | 3,220,317 |
Accrued interest receivable | 13,366 | 13,145 |
Liabilities: | ||
Deposit accounts | 3,297,073 | 3,145,581 |
FHLB advances | 260,000 | 278,000 |
Other borrowings | 51,363 | 49,971 |
Subordinated debentures | 69,413 | 69,383 |
Accrued interest payable | 286 | 263 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 100,513 | 156,857 |
Investments held-to-maturity | 8,147 | 8,461 |
Investment securities available-for-sale, at fair value | 435,408 | 380,963 |
Loans held for sale, net | 11,969 | 8,405 |
Loans held for investment, net | 3,347,355 | 3,211,154 |
Accrued interest receivable | 13,366 | 13,145 |
Liabilities: | ||
Deposit accounts | 3,037,084 | 2,904,046 |
FHLB advances | 259,917 | 277,935 |
Other borrowings | 52,126 | 50,905 |
Subordinated debentures | 70,104 | 69,982 |
Accrued interest payable | 286 | 263 |
Interest-bearing time deposits with financial institutions | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 3,944 | 3,944 |
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 | 3,944 |
Interest-bearing time deposits with financial institutions | Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | $ 3,944 | $ 3,944 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Hierarchy Table - Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Total | ||
Investment securities available-for-sale, at fair value | $ 435,408 | $ 380,963 |
Corporate | ||
Total | ||
Investment securities available-for-sale, at fair value | 54,188 | 37,642 |
Municipal bonds | ||
Total | ||
Investment securities available-for-sale, at fair value | 128,782 | 118,803 |
Collateralized mortgage obligation: residential | ||
Total | ||
Investment securities available-for-sale, at fair value | 30,003 | 31,388 |
Mortgage-backed securities | ||
Total | ||
Investment securities available-for-sale, at fair value | 222,435 | 193,130 |
Level 1 | ||
Total | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Level 2 | ||
Total | ||
Investment securities available-for-sale, at fair value | 435,408 | 380,963 |
Level 3 | ||
Total | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | ||
Total | ||
Investment securities available-for-sale, at fair value | 435,408 | 380,963 |
Recurring basis | Corporate | ||
Total | ||
Investment securities available-for-sale, at fair value | 54,188 | 37,642 |
Recurring basis | Municipal bonds | ||
Total | ||
Investment securities available-for-sale, at fair value | 128,782 | 118,803 |
Recurring basis | Collateralized mortgage obligation: residential | ||
Total | ||
Investment securities available-for-sale, at fair value | 30,003 | 31,388 |
Recurring basis | Mortgage-backed securities | ||
Total | ||
Investment securities available-for-sale, at fair value | 222,435 | 193,130 |
Recurring basis | Level 1 | ||
Total | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Corporate | ||
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: residential | ||
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 | 435,408 | 380,963 |
Recurring basis | Level 2 | Corporate | ||
Total | ||
Investment securities available-for-sale, at fair value | 54,188 | 37,642 |
Recurring basis | Level 2 | Municipal bonds | ||
Total | ||
Investment securities available-for-sale, at fair value | 128,782 | 118,803 |
Recurring basis | Level 2 | Collateralized mortgage obligation: residential | ||
Total | ||
Investment securities available-for-sale, at fair value | 30,003 | 31,388 |
Recurring basis | Level 2 | Mortgage-backed securities | ||
Total | ||
Investment securities available-for-sale, at fair value | 222,435 | 193,130 |
Recurring basis | Level 3 | ||
Total | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Corporate | ||
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: residential | ||
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 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Apr. 01, 2017USD ($)shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Jan. 29, 2016$ / shares |
Assets | $ 4,174,428 | $ 4,036,311 | |||
Gross loans | 3,393,537 | 3,245,694 | $ 2,850,494 | ||
Deposits | $ 3,297,073 | $ 3,145,581 | |||
Closing stock price of common stock ($ per share) | $ / shares | $ 38.55 | $ 20.53 | |||
Subsequent Event | Heritage Oaks Bancorp | |||||
Assets | $ 2,000,000 | ||||
Gross loans | 1,400,000 | ||||
Deposits | $ 1,700,000 | ||||
Equity issued (shares) | 0.3471 | ||||
Consideration paid | $ 482,000 | ||||
Cash consideration | $ 1,400 | ||||
Subsequent Event | Heritage Oaks Bancorp | Common Stock | |||||
Number of shares of common stock issued as consideration | shares | 11,959,535 |