Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 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 | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,055,988 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 35,686 | $ 14,706 |
Interest-bearing deposits with financial institutions | 193,595 | 142,151 |
Cash and cash equivalents | 229,281 | 156,857 |
Interest-bearing time deposits with financial institutions | 3,944 | 3,944 |
Investments held-to-maturity, at amortized cost (fair value of $7,703 and $8,461 as of June 30, 2017 and December 31, 2016, respectively) | 7,750 | 8,565 |
Investment securities available-for-sale, at fair value | 703,083 | 380,963 |
FHLB, FRB and other stock, at cost | 56,612 | 37,304 |
Loans held for sale, at lower of cost or fair value | 6,840 | 7,711 |
Loans held for investment | 4,858,611 | 3,241,613 |
Allowance for loan losses | (25,055) | (21,296) |
Loans held for investment, net | 4,833,556 | 3,220,317 |
Accrued interest receivable | 20,607 | 13,145 |
Other real estate owned | 372 | 460 |
Premises and equipment | 45,342 | 12,014 |
Deferred income taxes, net | 22,201 | 16,807 |
Bank owned life insurance | 74,982 | 40,409 |
Intangible assets | 35,305 | 9,451 |
Goodwill | 370,564 | 102,490 |
Other assets | 30,192 | 25,874 |
Total Assets | 6,440,631 | 4,036,311 |
Deposit accounts: | ||
Noninterest-bearing checking | 1,810,047 | 1,185,768 |
Interest-bearing: | ||
Checking | 323,818 | 182,893 |
Money market/savings | 2,006,131 | 1,202,361 |
Retail certificates of deposit | 572,523 | 375,203 |
Wholesale/brokered certificates of deposit | 233,912 | 199,356 |
Total interest-bearing | 3,136,384 | 1,959,813 |
Total deposits | 4,946,431 | 3,145,581 |
FHLB advances and other borrowings | 397,267 | 327,971 |
Subordinated debentures | 79,800 | 69,383 |
Accrued expenses and other liabilities | 57,402 | 33,636 |
Total Liabilities | 5,480,900 | 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; 40,048,758 shares at June 30, 2017 and 27,798,283 shares at December 31, 2016 | 396 | 274 |
Additional paid-in capital | 815,329 | 345,138 |
Retained earnings | 140,746 | 117,049 |
Accumulated other comprehensive loss, net of tax | 3,260 | (2,721) |
Total Stockholders' Equity | 959,731 | 459,740 |
Total Liabilities and Stockholders' Equity | $ 6,440,631 | $ 4,036,311 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Estimated Fair Value | $ 7,703 | $ 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) | 40,048,758 | 27,798,283 |
Common stock, shares outstanding (in shares) | 40,048,758 | 27,798,283 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
INTEREST INCOME | |||||
Loans | $ 63,554 | $ 42,436 | $ 39,035 | $ 105,990 | $ 74,442 |
Investment securities and other interest-earning assets | 5,179 | 2,991 | 1,839 | 8,170 | 3,937 |
Total interest income | 68,733 | 45,427 | 40,874 | 114,160 | 78,379 |
INTEREST EXPENSE | |||||
Deposits | 3,081 | 2,135 | 2,010 | 5,216 | 4,079 |
FHLB advances and other borrowings | 1,175 | 604 | 324 | 1,779 | 649 |
Subordinated debentures | 1,139 | 985 | 979 | 2,124 | 1,889 |
Total interest expense | 5,395 | 3,724 | 3,313 | 9,119 | 6,617 |
Net interest income before provision for loan losses | 63,338 | 41,703 | 37,561 | 105,041 | 71,762 |
Provision for loan losses | 1,904 | 2,502 | 1,589 | 4,406 | 2,709 |
Net interest income after provision for loan losses | 61,434 | 39,201 | 35,972 | 100,635 | 69,053 |
NONINTEREST INCOME | |||||
Loan servicing fees | 143 | 222 | 256 | 365 | 481 |
Deposit fees | 1,646 | 847 | 817 | 2,493 | 1,645 |
Net gain from sales of loans | 2,887 | 2,811 | 2,124 | 5,698 | 4,030 |
Net gain from sales of investment securities | 2,093 | 0 | 532 | 2,093 | 1,285 |
Net gain from other real estate owned | 94 | 0 | 18 | 94 | 18 |
Other income | 1,896 | 803 | 703 | 2,699 | 1,839 |
Total noninterest income | 8,759 | 4,683 | 4,450 | 13,442 | 9,298 |
NONINTEREST EXPENSE | |||||
Compensation and benefits | 21,623 | 14,887 | 13,098 | 36,510 | 24,837 |
Premises and occupancy | 3,733 | 2,453 | 2,447 | 6,186 | 4,730 |
Data processing | 2,439 | 1,187 | 887 | 3,626 | 1,798 |
Other real estate owned operations, net | 44 | 12 | (15) | 56 | (7) |
FDIC insurance premiums | 818 | 455 | 401 | 1,273 | 783 |
Legal, audit and professional expense | 1,178 | 857 | 446 | 2,035 | 1,311 |
Marketing expense | 1,006 | 818 | 803 | 1,824 | 1,433 |
Office, telecommunications and postage expense | 922 | 433 | 573 | 1,355 | 1,054 |
Loan expense | 1,068 | 468 | 540 | 1,536 | 943 |
Deposit expense | 1,669 | 1,444 | 1,196 | 3,113 | 2,201 |
Merger-related expense | 10,117 | 4,946 | 497 | 15,063 | 3,616 |
CDI amortization | 1,761 | 511 | 645 | 2,272 | 989 |
Other expense | 2,118 | 1,276 | 2,177 | 3,394 | 3,640 |
Total noninterest expense | 48,496 | 29,747 | 23,695 | 78,243 | 47,328 |
Net income before income taxes | 21,697 | 14,137 | 16,727 | 35,834 | 31,023 |
Income tax | 7,521 | 4,616 | 6,358 | 12,137 | 12,100 |
Net Income | $ 14,176 | $ 9,521 | $ 10,369 | $ 23,697 | $ 18,923 |
EARNINGS PER SHARE | |||||
Basic (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.38 | $ 0.71 | $ 0.72 |
Diluted (in dollars per share) | $ 0.35 | $ 0.34 | $ 0.37 | $ 0.69 | $ 0.70 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||
Basic (in shares) | 39,586,524 | 27,528,940 | 27,378,930 | 33,591,040 | 26,467,292 |
Diluted (in shares) | 40,267,220 | 28,197,220 | 27,845,490 | 34,267,215 | 26,901,627 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 14,176 | $ 9,521 | $ 10,369 | $ 23,697 | $ 18,923 | |
Other comprehensive income, net of tax: | ||||||
Unrealized holding gains (losses) on securities arising during the period, net of income taxes (benefits) | [1] | 6,336 | 1,013 | 947 | 7,349 | 2,512 |
Reclassification adjustment for net gain on sale of securities included in net income, net of income taxes | [2] | (1,368) | 0 | (308) | (1,368) | (744) |
Other comprehensive income, net of tax | 4,968 | 1,013 | 639 | 5,981 | 1,768 | |
Comprehensive income, net of tax | $ 19,144 | $ 10,534 | $ 11,008 | $ 29,678 | $ 20,691 | |
[1] | Income tax (benefit) on the unrealized gains (losses) on securities was $4.3 million for the three months ended June 30, 2017, $714,000 for the three months ended March 31, 2017, $736,000 for the three months ended June 30, 2016, $5.0 million for the six months ended June 30, 2017 and $1.8 million for the six months ended June 30, 2016. | |||||
[2] | Income tax (benefit) on the reclassification adjustment for net (gains) losses on sale of securities included in net income was $725,000 for the three months ended June 30, 2017, $0 for the three months ended March 31, 2017, $224,000 for the three months ended June 30, 2016, $725,000 for the six months ended June 30, 2017 and $541,000 for the six months ended June 30, 2016. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||
Tax effect on unrealized holding gains (losses) on securities arising during the period | $ 4,300 | $ 714 | $ 736 | $ 5,000 | $ 1,800 |
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | $ 725 | $ 0 | $ 224 | $ 725 | $ 541 |
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 | 18,923 | 18,923 | |||
Other comprehensive income | 1,768 | 1,768 | |||
Share-based compensation expense | 1,048 | 1,048 | |||
Issuance of restricted stock, net (in shares) | 218,236 | ||||
Common stock issued | 119,383 | $ 58 | 119,325 | ||
Common stock issued (in shares) | 5,815,051 | ||||
Exercise of stock options | 528 | 528 | |||
Exercise of stock options (in shares) | 46,500 | ||||
Balance at Jun. 30, 2016 | 440,630 | $ 273 | 342,388 | 95,869 | 2,100 |
Balance (in shares) at Jun. 30, 2016 | 27,650,533 | ||||
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 | $ 23,697 | 23,697 | |||
Other comprehensive income | 5,981 | 5,981 | |||
Share-based compensation expense | 2,797 | 2,797 | |||
Issuance of restricted stock, net | 0 | 0 | |||
Issuance of restricted stock, net (in shares) | 53,468 | ||||
Common stock issued | 464,982 | $ 120 | 464,862 | ||
Common stock issued (in shares) | 11,959,022 | ||||
Repurchase of common stock | (1,077) | (1,077) | |||
Repurchase of common stock (in shares) | 0 | ||||
Exercise of stock options | 3,611 | $ 2 | 3,609 | ||
Exercise of stock options (in shares) | 237,985 | ||||
Balance at Jun. 30, 2017 | $ 959,731 | $ 396 | $ 815,329 | $ 140,746 | $ 3,260 |
Balance (in shares) at Jun. 30, 2017 | 40,048,758 | 40,048,758 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 23,697 | $ 18,923 |
Adjustments to net income: | ||
Depreciation and amortization expense | 2,049 | 1,348 |
Provision for loan losses | 4,406 | 2,709 |
Share-based compensation expense | 2,797 | 1,048 |
Loss on sale and disposal of premises and equipment | (200) | (18) |
Loss on sale of or write down of other real estate owned | (94) | 0 |
Net amortization on securities available-for-sale, net | 3,745 | 7,080 |
Net accretion of discounts/premiums for loans acquired and deferred loan fees/costs | 1,722 | (6,713) |
Gain on sale of investment securities available-for-sale | (2,093) | (1,285) |
Other-than-temporary impairment recovery on investment securities, net | 1 | 0 |
Originations of loans held for sale | (61,448) | (44,463) |
Proceeds from the sales of and principal payments from loans held for sale | 65,508 | 47,487 |
Gain on sale of loans | (5,698) | (4,030) |
Deferred income tax expense (benefit) | 912 | (977) |
Change in accrued expenses and other liabilities, net | 4,480 | (1,700) |
Income from bank owned life insurance, net | (849) | (579) |
Amortization of core deposit intangible | 2,272 | 989 |
Change in accrued interest receivable and other assets, net | 2,064 | 5,904 |
Net cash provided by operating activities | 43,271 | 25,723 |
Cash flows from investing activities: | ||
Proceeds from sale of real estate owned | 182 | 468 |
Increase in loans, net | (254,468) | (204,505) |
Principal payments on securities available-for-sale | 34,469 | 18,234 |
Purchase of securities available-for-sale | (109,944) | (5,135) |
Proceeds from sale or maturity of securities available-for-sale | 216,804 | 211,303 |
Proceeds from the sale of premises and equipment | 0 | 6,987 |
Purchases of premises and equipment | (274) | (5,745) |
Proceeds from bank owned life insurance death benefit | 199 | 0 |
Change in FHLB, FRB, and other stock, at cost | (9,569) | (4,692) |
Cash acquired in acquisitions, net | 77,144 | 40,303 |
Net cash (used in) provided by investing activities | (45,457) | 57,218 |
Cash flows from financing activities: | ||
Net increase in deposit accounts | 131,397 | 99,286 |
Change in FHLB advances and other borrowings, net | (59,321) | (75,873) |
Proceeds from exercise of stock options and warrants | 3,611 | 528 |
Repurchase of common stock | (1,077) | 0 |
Net cash provided by financing activities | 74,610 | 23,941 |
Net increase in cash and cash equivalents | 72,424 | 106,882 |
Cash and cash equivalents, beginning of period | 156,857 | 78,417 |
Cash and cash equivalents, end of period | 229,281 | 185,299 |
Supplemental cash flow disclosures: | ||
Interest paid | 8,828 | 4,182 |
Income taxes paid | 1,858 | 136 |
Security (purchases) sales settled in subsequent period | (11,130) | 0 |
Assets acquired (liabilities assumed and capital created) in acquisitions (See Note 4): | ||
Investment securities | 442,923 | 190,254 |
FHLB and Other Stock | 9,739 | 1,972 |
Loans | 1,364,688 | 456,158 |
Core deposit intangible | 28,123 | 4,319 |
Deferred income tax | 11,623 | 6,748 |
Goodwill | 268,075 | 51,658 |
Fixed assets | 34,902 | 4,190 |
Other assets | 45,475 | 9,362 |
Deposits | (1,669,550) | (636,591) |
Other borrowings | 139,034 | 0 |
Other liabilities | (8,061) | (8,843) |
Common stock and additional paid-in capital | $ 464,982 | $ (120,174) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 June 30, 2017 and December 31, 2016 , the results of its operations and comprehensive income for the three months ended June 30, 2017 , March 31, 2017 and June 30, 2016 and the six months ended June 30, 2017 and June 30, 2016 and the changes in stockholders’ equity and cash flows for the six months ended June 30, 2017 and 2016 . Operating results or comprehensive income for the six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 periods within those annual periods. Early adoption 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 $461,000 tax benefit to the Company for the second quarter of 2017 compared with $1.1 million tax benefit in 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. Recent Accounting Guidance Not Yet Effective In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. The amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Modification accounting will apply unless all of the following are the same immediately before and after the modification: • The award’s fair value – or calculated value or intrinsic value, if an alternative method is used. If the modification does not affect any inputs to the valuation of the award, estimating the value immediately before and after the modification is not required. • The award’s vesting provisions • The award’s classification as an equity instrument or a liability instrument The Update is effective for all entities for fiscal years beginning after December 15, 2017, including interim periods within those years. The amendments should be applied prospectively to awards modified on or after the effective date. The adoption of this standard will not material effect the Company's operating results or financial condition, as historically the Company has not modified share-based awards. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities, the amendment is effective for annual periods beginning after December 15, 2019 and interim period within those annual periods. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures. The Company is in the process of compiling key data elements and considering software models that will meet the requirements of the new guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The Update is generally effective for public business entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the early stages of its implementation assessment, which includes identifying the population of the Company's leases that are within the scope of the new guidance and gathering all key lease data that will facilitate application of the new accounting requirements. ASU 2014-09, Revenue From Contracts With Customers (Topic 606), ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives ad Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20 Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements to Topic 606. The FASB amended existing guidance related to revenue from contracts with customers, superseding and replacing nearly all existing revenue recognition guidance, including industry-specific guidance, establishing a new control-based revenue recognition model, changing the basis for deciding when revenue is recognized over time or at a point in time, providing new and more detailed guidance on specific topics and expanding and improving disclosures about revenue. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer. The amendments are effective for public entities for annual reporting periods beginning after December 15, 2017. Substantially all of the Company's revenue is generated from interest income related to loans and investment securities, which are not within the scope of this guidance. The contracts that are within the scope of this guidance include service charges and fees on deposit accounts and the Company does not expect the adoption will have a significant impact on its Consolidated Financial Statements. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 either an accelerated basis, reflecting the pattern in which the economic benefits of the intangible assets is consumed or otherwise used up, or 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 | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The Company accounted for the following transactions under the acquisition method of accounting which requires purchased assets and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of the loans, core deposit intangible, securities and deposits with the assistance of third party valuations. Heritage Oaks Bancorp Acquisition The Company 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 March 31, 2017. Heritage Oaks Bank 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 HEOP 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 $465 million , which included approximately $3.9 million of aggregate cash consideration payable to holders of Heritage Oaks share-based compensation awards, and the issuance of 11,959,022 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. Goodwill in the amount of $268 million was recognized in the HEOP 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 HEOP as of April 1, 2017 and the fair value adjustments and amounts recorded by the Company in 2017 under the acquisition method of accounting: HEOP Book Value Fair Value Adjustments Fair Value ASSETS ACQUIRED (dollars in thousands) Cash and cash equivalents $ 78,728 $ — $ 78,728 Investment securities 447,520 (4,597 ) 442,923 FHLB stock 9,739 — 9,739 Loans, gross 1,387,949 (23,261 ) 1,364,688 Allowance for loan losses (17,200 ) 17,200 — Fixed assets 35,567 (665 ) 34,902 Core deposit intangible — 28,123 28,123 Deferred tax assets 17,850 (7,291 ) 10,559 Other assets 45,484 (9 ) 45,475 Total assets acquired $ 2,005,637 $ 9,500 $ 2,015,137 LIABILITIES ASSUMED Deposits 1,668,079 1,471 1,669,550 Borrowings 141,996 (2,962 ) 139,034 Other Liabilities 7,290 771 8,061 Total liabilities assumed 1,817,365 (720 ) 1,816,645 Excess of assets acquired over liabilities assumed $ 188,272 $ 10,220 198,492 Consideration paid 464,982 Capitalized merger-related expense 1,585 Goodwill recognized $ 268,075 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. 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 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 and HEOP, 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 HEOP (dollars in thousands) Contractual amounts due $ 539,806 $ 1,717,230 Cash flows not expected to be collected 2,765 4,442 Expected cash flows 537,041 1,712,788 Interest component of expected cash flows 80,883 348,100 Fair value of acquired loans $ 456,158 $ 1,364,688 In accordance with generally accepted accounting principles, there was no carryover of the allowance for loan losses that had been previously recorded by SCAF and HEOP. The operating results of the Company for the three months ended June 30, 2017, March 31, 2017 and June 30, 2016 and the six months ended June 30, 2017 and June 30, 2016 include the operating results of SCAF and HEOP 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 and HEOP 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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2017 2017 2016 2017 2016 (dollars in thousands) Net interest and other income $ 70,193 $ 62,362 $ 60,304 $ 132,555 $ 119,420 Net income 14,176 10,084 14,584 24,260 25,152 Basic earnings per share 0.36 0.26 0.37 0.62 0.64 Diluted earnings per share 0.35 0.25 0.37 0.60 0.63 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities were as follows: June 30, 2017 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: Agency $ 54,388 $ 707 $ (24 ) $ 55,071 Corporate 53,498 1,001 (150 ) 54,349 Municipal bonds 247,242 5,194 (358 ) 252,078 Collateralized mortgage obligation: residential 46,095 312 (86 ) 46,321 Mortgage-backed securities: residential 296,324 893 (1,953 ) 295,264 Total investment securities available-for-sale 697,547 8,107 (2,571 ) 703,083 Investment securities held-to-maturity: Mortgage-backed securities: residential 6,586 — (47 ) 6,539 Other 1,164 — — 1,164 Total investment securities held-to-maturity 7,750 — (47 ) 7,703 Total investment securities $ 705,297 $ 8,107 $ (2,618 ) $ 710,786 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 June 30, 2017 , mortgage-backed securities ("MBS ") with an estimated par value of $56.0 million and a fair value of $58.0 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 $20.9 million . At December 31, 2016, 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 HOA reverse repurchase agreements which totaled $21.5 million . At June 30, 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 did not realize any OTTI recoveries or losses for the three months ended June 30, 2017 . However, the Company did realize an OTTI recovery of $1,000 for the three months ended March 31, 2017 , which relates to investment income from a previously charge-off investment. 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 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 Company'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. June 30, 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: Agency 1 $ 1,784 $ (24 ) — $ — $ — 1 $ 1,784 $ (24 ) Corporate 2 6,070 (150 ) — — — 2 6,070 (150 ) Municipal bonds 47 24,556 (353 ) 1 418 (5 ) 48 24,974 (358 ) Collateralized mortgage obligation: residential 4 12,517 (86 ) — — — 4 12,517 (86 ) Mortgage-backed securities: residential 55 147,423 (1,638 ) 6 19,244 (315 ) 61 166,667 (1,953 ) Total investment securities available-for-sale 109 192,350 (2,251 ) 7 19,662 (320 ) 116 212,012 (2,571 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 1 6,539 (47 ) — — — 1 6,539 (47 ) Total investment securities held-to-maturity 1 6,539 (47 ) — — — 1 6,539 (47 ) Total investment securities 110 $ 198,889 $ (2,298 ) 7 $ 19,662 $ (320 ) 117 $ 218,551 $ (2,618 ) 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 June 30, 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: Agency $ — $ — $ — $ — $ 15,123 $ 15,248 $ 39,265 $ 39,823 $ 54,388 $ 55,071 Corporate — — — — 53,498 54,349 — — 53,498 54,349 Municipal bonds 3,104 3,107 35,725 36,012 75,712 77,010 132,701 135,949 247,242 252,078 Collateralized mortgage obligation: residential — — — — 3,613 3,661 42,482 42,660 46,095 46,321 Mortgage-backed securities: residential 2,636 2,630 6,327 6,348 49,626 49,839 237,735 236,447 296,324 295,264 Total investment securities available-for-sale 5,740 5,737 42,052 42,360 197,572 200,107 452,183 454,879 697,547 703,083 Investment securities held-to-maturity: Mortgage-backed securities: residential — — — — — — 6,586 6,539 6,586 6,539 Other — — — — — — 1,164 1,164 1,164 1,164 Total investment securities held-to-maturity — — — — — — 7,750 7,703 7,750 7,703 Total investment securities $ 5,740 $ 5,737 $ 42,052 $ 42,360 $ 197,572 $ 200,107 $ 459,933 $ 462,582 $ 705,297 $ 710,786 Unrealized gains and losses on investment securities available-for-sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At June 30, 2017 , the Company had an accumulated other comprehensive income of $5.5 million , or $3.3 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 June 30, 2017 and June 30, 2016 , the Company recognized gross gains on sales of available-for-sale securities in the amount of $2.1 million and $532,000 , respectively. The Company did not recognize any gross gains on sales of available-for-sale securities during the three months ended March 31, 2017 . During the three months ended June 30, 2017 , the Company recognized gross losses on the sales of available-for-sale securities in the amount of $50,000 . The Company did not recognize any gross losses on the sales of available-for sale securities during the three months ended March 31, 2017 and June 30, 2016 . The Company had net proceeds from the sale of available-for-sale securities of $215 million during the three months ended June 30, 2017 and $21.1 million during the three months ended June 30, 2016 . The Company had zero net proceeds from the sale of available-for-sale securities during the three months ended March 31, 2017 . During the six months ended June 30, 2017 and June 30, 2016 , the Company recognized gross gains on sales of available-for-sale securities in the amount of $2.1 million and $1.3 million , respectively. During the six months ended June 30, 2017 and June 30, 2016 , the Company recognized gross losses on sales of available-for-sale securities in the amount of $50,000 and $9,000 , respectively. The Company had net proceeds from the sale of available-for-sale securities of $215 million during the six months ended June 30, 2017 and $207 million during the six months ended June 30, 2016 . FHLB, FRB and other stock At June 30, 2017 , the Company had $17.3 million in Federal Home Loan Bank (“FHLB”) stock, $25.0 million in Federal Reserve Bank of San Francisco (“FRB”) stock, and $14.4 million in other stock, all carried at cost. During the three months ended June 30, 2017 , the Company acquired $7.9 million of FHLB stock through the HEOP acquisition, of which the FHLB subsequently repurchased $5.0 million through their stock repurchase program. During the three months ended June 30, 2016 and December 31, 2016 , the FHLB did not repurchase any of the Company’s excess FHLB stock through their stock repurchase program. In addition, the Company acquired another $1.9 million of other stock through the HEOP acquisition and was required to increase its holdings of FRB stock by $14.1 million. 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 June 30, 2017 . |
Loans Held for Investment
Loans Held for Investment | 6 Months Ended |
Jun. 30, 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: June 30, 2017 December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 733,852 $ 563,169 Franchise 565,415 459,421 Commercial owner occupied (1) 729,476 454,918 SBA 108,224 96,705 Agriculture 98,842 — Real estate loans: Commercial non-owner occupied 1,095,184 586,975 Multi-family 746,547 690,955 One-to-four family (2) 322,048 100,451 Construction 289,600 269,159 Farmland 136,587 — Land 31,799 19,829 Other loans 7,309 4,112 Total gross loans (3) 4,864,883 3,245,694 Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net 568 3,630 Total loans 4,865,451 3,249,324 Less: loans held for sale, at lower of cost or fair value 6,840 7,711 Loans held for investment 4,858,611 3,241,613 Allowance for loan losses (25,055 ) (21,296 ) Loans held for investment, net $ 4,833,556 $ 3,220,317 ______________________________ (1) Secured by real estate. (2) Includes second trust deeds. (3) Total gross loans for June 30, 2017 are net of the unaccreted fair value purchase discounts of $25.2 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 $261.4 million for secured loans and $156.8 million for unsecured loans at June 30, 2017 . At June 30, 2017 , the Bank’s largest aggregate outstanding balance of loans to one borrower was $35.0 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, Security Bank of California in 2016 and Heritage Oaks Bank in 2017 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: June 30, 2017 December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 3,679 $ 2,586 Commercial owner occupied 3,208 491 SBA 361 — Real estate loans: Commercial non-owner occupied 1,151 1,088 Multi-family 237 — One-to-four family 262 1 Construction/Land 549 — Other loans 274 393 Total purchase credit impaired $ 9,721 $ 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 June 30, 2017 , the Company had $9.7 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 June 30, 2017 , March 31, 2017 and June 30, 2016 and for the six months ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, 2017 March 31, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Balance at the beginning of period $ 3,601 $ 3,747 $ 3,254 $ 3,747 $ 2,726 Additions 2,036 — — 2,036 788 Accretion (712 ) (629 ) (147 ) (1,341 ) (276 ) Payoffs — — (126 ) — (449 ) Reclassification from (to) nonaccretable difference (1,428 ) 483 — (945 ) 192 Balance at the end of period $ 3,497 $ 3,601 $ 2,981 $ 3,497 $ 2,981 Impaired Loans The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated: Impaired Loans Contractual Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans (dollars in thousands) June 30, 2017 Business loans: Commercial owner occupied $ 240 $ 206 $ — $ 206 $ — SBA 146 73 — 73 — Real estate loans: One-to-four family 135 104 — 104 — Land 35 12 — 12 — Totals $ 556 $ 395 $ — $ 395 $ — 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 June 30, 2017 March 31, 2017 June 30, 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 $ 7 $ — $ 200 $ 5 $ 350 $ 8 Franchise — — — — 1,461 24 Commercial owner occupied 125 2 192 3 494 9 SBA 222 4 307 5 247 4 Real estate loans: One-to-four family 105 3 116 3 393 5 Land 12 1 14 1 19 1 Totals $ 471 $ 10 $ 829 $ 17 $ 2,964 $ 51 Impaired Loans Six Months Ended June 30, 2017 June 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Business loans: Commercial and industrial $ 200 $ 5 $ 329 $ 13 Franchise — — 1,546 51 Commercial owner occupied 192 5 506 18 SBA 307 9 135 4 Real estate loans: Commercial non-owner occupied — — 71 2 One-to-four family 116 6 322 10 Land 14 2 19 1 Totals $ 829 $ 27 $ 2,928 $ 99 The Company considers a loan to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or it is determined that the likelihood of the Company receiving all scheduled payments, including interest, when due is remote. The Company has no commitments to lend additional funds to debtors whose loans have been impaired. The Company reviews loans for impairment when the loan is classified as substandard or worse, delinquent 90 days, or determined by management to be collateral dependent, or when the borrower files bankruptcy or is granted a troubled debt restructuring (“TDR”). Measurement of impairment is based on the loan’s expected future cash flows discounted at the loan’s effective interest rate, measured by reference to an observable market value, if one exists, or the fair value of the collateral if the loan is deemed collateral dependent. All loans are generally charged-off at such time the loan is classified as a loss. Valuation allowances are determined on a loan-by-loan basis or by aggregating loans with similar risk characteristics. The following table provides additional detail on the components of impaired loans at the period end indicated: June 30, 2017 December 31, 2016 (dollars in thousands) Nonaccruing loans $ 395 $ 1,141 Accruing loans — — Total impaired loans $ 395 $ 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 $395,000 at June 30, 2017 and $1.1 million at December 31, 2016 . The Company had no loans 90 days or more past due and still accruing at June 30, 2017 and December 31, 2016 . At June 30, 2017 , the Company had a recorded investment in one TDR of $1.6 million . The modification of the terms of the loan included the restructuring of three loans related to one borrower into one loan and an extension of the maturity to six years. There were no TDRs at 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 June 30, 2017 and December 31, 2016 . Concentration of Credit Risk As of June 30, 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 June 30, 2017 (dollars in thousands) Business loans: Commercial and industrial $ 715,759 $ 8,972 $ 9,121 $ — $ 733,852 Franchise 565,415 — — — 565,415 Commercial owner occupied 711,959 2,035 15,482 — 729,476 SBA 107,429 10 785 — 108,224 Agriculture 92,522 4,634 1,686 — 98,842 Real estate loans: Commercial non-owner occupied 1,087,928 5,784 1,472 — 1,095,184 Multi-family 745,766 — 781 — 746,547 One-to-four family 321,021 171 856 — 322,048 Construction and land 320,610 — 789 — 321,399 Farmland 134,409 77 2,101 136,587 Other loans 6,975 — 334 — 7,309 Totals $ 4,809,793 $ 21,683 $ 33,407 $ — $ 4,864,883 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 and land 288,973 — 15 — 288,988 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 June 30, 2017 (dollars in thousands) Business loans: Commercial and industrial $ 733,250 $ 225 $ 280 $ 97 $ 733,852 $ — Franchise 565,415 — — — 565,415 — Commercial owner occupied 728,403 — 901 172 729,476 206 SBA 108,057 17 18 132 108,224 73 Agriculture 98,842 — — — 98,842 — Real estate loans: Commercial non-owner occupied 1,094,655 — 529 — 1,095,184 — Multi-family 746,310 — 237 — 746,547 — One-to-four family 321,653 354 — 41 322,048 104 Construction/Land/Other 465,279 4 — 12 465,295 12 Totals $ 4,861,864 $ 600 $ 1,965 $ 454 $ 4,864,883 $ 395 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 | 6 Months Ended |
Jun. 30, 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 in accordance with the historical loss method, 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 a full credit cycle (replacing prior period's interval ranging from 8 to 87 months) with the loss emergence period extending from 1 year to 1.4 years . The aforementioned enhancements did not materially impact the allowance balance at June 30, 2017. 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. 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 and six months ended for the periods indicated: Three Months Ended June 30, 2017 Commercial and industrial Franchise Commercial owner occupied SBA Agriculture Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Other loans Total (dollars in thousands) Balance, March 31, 2017 $ 6,949 $ 4,474 $ 1,232 $ 1,145 $ — $ 1,847 $ 2,803 $ 373 $ 4,027 $ — $ 204 $ 21 $ 23,075 Charge-offs (110 ) — — — — — — — — — — — (110 ) Recoveries 33 — 70 81 — — — 1 — — — 1 186 Provisions for (reduction in) loan losses 772 893 (630 ) 1,293 206 (643 ) (2,192 ) 350 1,009 28 755 63 1,904 Balance, June 30, 2017 $ 7,644 $ 5,367 $ 672 $ 2,519 $ 206 $ 1,204 $ 611 $ 724 $ 5,036 $ 28 $ 959 $ 85 $ 25,055 Six Months Ended June 30, 2017 Commercial and industrial Franchise Commercial owner occupied SBA Agriculture Commercial non-owner occupied Multi-family One-to-four family Construction Farmland 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 (862 ) — — (8 ) — — — — — — — — (870 ) Recoveries 55 — 82 83 — — — 2 — — — 1 223 Provisions for (reduction in) loan losses 2,089 1,522 (603 ) 1,405 206 (511 ) (2,316 ) 357 1,404 28 761 64 4,406 Balance, June 30, 2017 $ 7,644 $ 5,367 $ 672 $ 2,519 $ 206 $ 1,204 $ 611 $ 724 $ 5,036 $ 28 $ 959 $ 85 $ 25,055 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — General portfolio allocation 7,644 5,367 672 2,519 206 1,204 611 724 5,036 28 959 85 25,055 Loans individually evaluated for impairment — — 206 73 — — — 104 — — 12 — 395 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % — % — % — % — % — % — % — % Loans collectively evaluated for impairment $ 733,852 $ 565,415 $ 729,270 $ 101,311 $ 98,842 $ 1,095,184 $ 746,547 $ 321,944 $ 289,600 $ 136,587 $ 31,787 $ 7,309 $ 4,857,648 General reserves to total loans collectively evaluated for impairment 1.04 % 0.95 % 0.09 % 2.49 % 0.21 % 0.11 % 0.08 % 0.22 % 1.74 % 0.02 % 3.02 % 1.16 % 0.52 % Total gross loans held for investment $ 733,852 $ 565,415 $ 729,476 $ 101,384 $ 98,842 $ 1,095,184 $ 746,547 $ 322,048 $ 289,600 $ 136,587 $ 31,799 $ 7,309 $ 4,858,043 Total allowance to gross loans held for investment 1.04 % 0.95 % 0.09 % 2.48 % 0.21 % 0.11 % 0.08 % 0.22 % 1.74 % 0.02 % 3.02 % 1.16 % 0.52 % Three Months Ended June 30, 2016 Commercial and industrial Franchise Commercial owner occupied SBA Warehouse Facilities Commercial non-owner occupied Multi-family One-to-four family Construction Land Other loans Total (dollars in thousands) Balance, March 31, 2016 $ 3,023 $ 3,568 $ 1,965 $ 1,628 $ 7 $ 1,897 $ 2,932 $ 705 $ 2,504 $ 204 $ 22 $ 18,455 Charge-offs (710 ) (169 ) (329 ) (5 ) — — — (7 ) — — — (1,220 ) Recoveries 40 — — 82 — — — 5 — — 4 131 Provisions for (reduction in) loan losses 2,132 (147 ) 505 (146 ) (7 ) 207 (598 ) (96 ) (259 ) — (2 ) 1,589 Balance, June 30, 2016 $ 4,485 $ 3,252 $ 2,141 $ 1,559 $ — $ 2,104 $ 2,334 $ 607 $ 2,245 $ 204 $ 24 $ 18,955 Six Months Ended June 30, 2016 Commercial and industrial Franchise Commercial owner occupied SBA Warehouse Facilities Commercial non-owner occupied Multi-family One-to-four family Construction Land Other loans Total (dollars in thousands) Balance, December 31, 2015 $ 3,449 $ 3,124 $ 1,870 $ 1,500 $ 759 $ 2,048 $ 1,583 $ 698 $ 2,030 $ 233 $ 23 $ 17,317 Charge-offs (710 ) (169 ) (329 ) (5 ) — — — (7 ) — — — (1,220 ) Recoveries 54 — — 85 — — — 6 — — 4 149 Provisions for (reduction in) loan losses 1,692 297 600 (21 ) (759 ) 56 751 (90 ) 215 (29 ) (3 ) 2,709 Balance, June 30, 2016 $ 4,485 $ 3,252 $ 2,141 $ 1,559 $ — $ 2,104 $ 2,334 $ 607 $ 2,245 $ 204 $ 24 $ 18,955 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ 731 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 731 General portfolio allocation 4,485 2,521 2,141 1,559 — 2,104 2,334 607 2,245 204 24 18,224 Loans individually evaluated for impairment 1,051 1,461 486 328 — — — 137 — 18 — 3,481 Specific reserves to total loans individually evaluated for impairment — % 50.03 % — % — % — % — % — % — % — % — % — % 21.00 % Loans collectively evaluated for impairment $ 507,090 $ 402,394 $ 442,574 $ 85,748 $ — $ 526,362 $ 613,573 $ 106,401 $ 215,786 $ 18,323 $ 5,822 $ 2,924,073 General reserves to total loans collectively evaluated for impairment 0.88 % 0.63 % 0.48 % 1.82 % — % 0.40 % 0.38 % 0.57 % 1.04 % 1.11 % 0.41 % 0.62 % Total gross loans held for investment $ 508,141 $ 403,855 $ 443,060 $ 86,076 $ — $ 526,362 $ 613,573 $ 106,538 $ 215,786 $ 18,341 $ 5,822 $ 2,927,554 Total allowance to gross loans held for investment 0.88 % 0.81 % 0.48 % 1.81 % — % 0.40 % 0.38 % 0.57 % 1.04 % 1.11 % 0.41 % 0.65 % |
Subordinated Debentures
Subordinated Debentures | 6 Months Ended |
Jun. 30, 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 3.91% per annum as of June 30, 2017 . On April 1, 2017, as part of the Heritage Oaks acquisition, the Company assumed $5.2 million of floating rate junior subordinated debt securities associated with Heritage Oaks Capital Trust II. Interest is payable quarterly at three-month LIBOR plus 1.72% per annum, for an effective rate of 2.86761% per annum as of June 30, 2017 . At June 30, 2017, the carrying value of these debentures was $3.9 million , which reflects purchase accounting fair value adjustments of $1.4 million . The Company also assumed $3.1 million and $5.2 million of floating rate junior subordinated debt associated with Mission Community Capital Trust I and Santa Lucia Bancorp (CA) Capital Trust, respectively. At June 30, 2017, the carrying value of Mission Community Capital Trust I and Santa Lucia Bancorp (CA) Capital Trust were $2.8 million and $3.7 million , which reflects purchase accounting fair value adjustments of $342,000 and $1.5 million . Interest is payable quarterly at three-month LIBOR plus 2.95% per annum, for an effective rate of 4.10844% per annum as of June 30, 2017 for Mission Community Capital Trust I. Interest is payable quarterly at three-month LIBOR plus 1.48% per annum, for an effective rate of 2.63844% per annum as of June 30, 2017 for Santa Lucia Bancorp (CA) Capital Trust. These three debentures are callable by the Company at par. The Corporation is not allowed to consolidate any trust preferred securities into the Company’s consolidated financial statements. The resulting effect on the Company’s consolidated financial statements is to report only the Subordinated Debentures as a component of the Company’s liabilities. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, March 31, June 30, June 30, 2017 2017 2016 2017 2016 Weighted average stock options excluded 15,531 — 154,251 7,389 131,703 The following tables set forth the Company’s earnings per share calculations for the periods indicated: Three Months Ended June 30, 2017 March 31, 2017 June 30, 2016 Net Shares Per Share Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 14,176 $ 9,521 $ 10,369 Basic income available to common stockholders 14,176 39,586,524 $ 0.36 9,521 27,528,940 $ 0.35 10,369 27,378,930 $ 0.38 Effect of dilutive stock option grants and warrants — 680,696 — 668,280 — 466,560 Diluted income available to common stockholders plus assumed conversions $ 14,176 40,267,220 $ 0.35 $ 9,521 28,197,220 $ 0.34 $ 10,369 27,845,490 $ 0.37 Six Months Ended June 30, 2017 2016 Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 23,697 $ 18,923 Basic income available to common stockholders 23,697 33,591,040 $ 0.71 18,923 26,467,292 $ 0.72 Effect of dilutive stock options and warrants 676,175 434,335 Diluted income available to common stockholders plus assumed conversions $ 23,697 34,267,215 $ 0.69 $ 18,923 26,901,627 $ 0.70 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 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 June 30, 2017 , March 31, 2017 and June 30, 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 June 30, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 229,281 $ 229,281 $ — $ — $ 229,281 Interest-bearing time deposits with financial institutions 3,944 3,944 — — 3,944 Investments held-to-maturity 7,750 — 7,703 — 7,703 Securities available-for-sale 703,083 — 703,083 — 703,083 Federal Reserve Bank and FHLB stock, at cost 56,612 N/A N/A N/A N/A Loans held for sale, net 6,840 — 7,665 — 7,665 Loans held for investment, net 4,858,611 — — 4,843,801 4,843,801 Accrued interest receivable 20,607 20,607 — — 20,607 Liabilities: Deposit accounts 4,946,431 3,745,568 801,765 — 4,547,333 FHLB advances 346,202 — 346,985 — 346,985 Other borrowings 51,065 — 51,742 — 51,742 Subordinated debentures 79,800 — 81,280 — 81,280 Accrued interest payable 443 443 — — 443 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: June 30, 2017 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (dollars in thousands) Investment securities available-for-sale: Agency $ — $ 55,071 $ — $ 55,071 Corporate — 54,349 — 54,349 Municipal bonds — 252,078 — 252,078 Collateralized mortgage obligation: residential — 46,321 — 46,321 Mortgage-backed securities: residential — 295,264 — 295,264 Total securities available-for-sale $ — $ 703,083 $ — $ 703,083 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 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. A loan is considered impaired when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. Impairment is measured based on the fair value of the underlying collateral or the discounted expected future cash flows. The Company measures impairment on all non-accrual loans for which it has reduced the principal balance to the value of the underlying collateral less the anticipated selling cost. As such, the Company records impaired loans as Level 3. At June 30, 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 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. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments From time to time, the Company enters into interest rate swap agreements with certain borrowers to assist them in mitigating their interest rate risk exposure associated with the loans they have with the Company. At the same time, the Company enters into identical interest rate swap agreements with another financial institution to mitigate the Company’s interest rate risk exposure associated with the swap agreements it enters into with its borrowers. At June 30, 2017 , the Company had swaps with matched terms with an aggregate notional amount of $41.3 million and a fair value of $1.2 million . The fair values of these swaps are recorded as components of other assets and other liabilities in the Company’s condensed consolidated balance sheet. Changes in the fair value of these swaps, which occur due to changes in interest rates, are recorded in the Company’s income statement as a component of noninterest income. Since the terms of the swap agreements between the Company and its borrowers have been matched with the terms of swap agreements with another financial institution, the adjustments for the change in their fair value offset each other in non-interest income. Although changes in the fair value of swap agreements between the Company and borrowers and the Company and other financial institutions offset each other, changes in the credit risk of these counterparties may result in a difference in the fair value of these swap agreements. Offsetting swap agreements the Company has with other financial institutions are collateralized with cash, and swap agreements with borrowers are secured by the collateral arrangements for the underlying loans these borrowers have with the Company. During the six months ended June 30, 2017 , there were no losses recorded on swap agreements, attributable to the change in credit risk associated with a counterparty. All interest rate swap agreements entered into by the Company as of June 30, 2017 are not designated as hedging instruments. The following tables summarize the Company's derivative instruments, included in "other assets" and "other liabilities" in the consolidated statements of financial condition. The Company's derivative instruments were acquired as part of the HEOP acquisition, and the Company did not have any at December 31, 2016: June 30, 2017 Derivative Assets Derivative Liabilities Notional Fair Value Notional Fair Value (dollars in thousands) Derivative instruments not designated as hedging instruments: Interest rate swap contracts $ 41,259 $ 1,177 $ 41,259 $ 1,177 Total derivative instruments $ 41,259 $ 1,177 $ 41,259 $ 1,177 |
Balance Sheet Offsetting
Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Derivative financial instruments may be eligible for offset in the consolidated balance sheets, such as those subject to enforceable master netting arrangements or a similar agreement. Under these agreements, the Company has the right to net settle multiple contracts with the same counterparty. The Company offers an interest rate swap product to qualified customers which are then paired with derivative contracts the Company enters into with a counterparty bank. While derivative contracts entered into with counterparty banks may be subject to enforceable master netting agreements, derivative contracts with customers may not be subject to enforceable master netting arrangements. As such, these instruments have been excluded from the table below. Financial instruments that are eligible for offset in the consolidated statements of financial condition as of June 30, 2017 are presented in the table below: Gross Amounts Not Offset in the Consolidated Gross Amounts Recognized in the Consolidated Balance Sheets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral (1) Net Amount (dollars in thousands) June 30, 2017 Financial assets: Derivatives not designated as $ 1,742 $ (565 ) $ 1,177 — $ 2,100 $ 3,277 Total $ 1,742 $ (565 ) $ 1,177 — $ 2,100 $ 3,277 Financial liabilities: Derivatives not designated as $ 1,177 — $ 1,177 — — $ 1,177 Total $ 1,177 — $ 1,177 — — $ 1,177 (1) Represents cash collateral held with counterparty bank. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 periods within those annual periods. Early adoption 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 $461,000 tax benefit to the Company for the second quarter of 2017 compared with $1.1 million tax benefit in 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. Recent Accounting Guidance Not Yet Effective In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. The amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Modification accounting will apply unless all of the following are the same immediately before and after the modification: • The award’s fair value – or calculated value or intrinsic value, if an alternative method is used. If the modification does not affect any inputs to the valuation of the award, estimating the value immediately before and after the modification is not required. • The award’s vesting provisions • The award’s classification as an equity instrument or a liability instrument The Update is effective for all entities for fiscal years beginning after December 15, 2017, including interim periods within those years. The amendments should be applied prospectively to awards modified on or after the effective date. The adoption of this standard will not material effect the Company's operating results or financial condition, as historically the Company has not modified share-based awards. |
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 either an accelerated basis, reflecting the pattern in which the economic benefits of the intangible assets is consumed or otherwise used up, or 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. |
Fair Value Measurement | 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 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 The following table represents the assets acquired and liabilities assumed of HEOP as of April 1, 2017 and the fair value adjustments and amounts recorded by the Company in 2017 under the acquisition method of accounting: HEOP Book Value Fair Value Adjustments Fair Value ASSETS ACQUIRED (dollars in thousands) Cash and cash equivalents $ 78,728 $ — $ 78,728 Investment securities 447,520 (4,597 ) 442,923 FHLB stock 9,739 — 9,739 Loans, gross 1,387,949 (23,261 ) 1,364,688 Allowance for loan losses (17,200 ) 17,200 — Fixed assets 35,567 (665 ) 34,902 Core deposit intangible — 28,123 28,123 Deferred tax assets 17,850 (7,291 ) 10,559 Other assets 45,484 (9 ) 45,475 Total assets acquired $ 2,005,637 $ 9,500 $ 2,015,137 LIABILITIES ASSUMED Deposits 1,668,079 1,471 1,669,550 Borrowings 141,996 (2,962 ) 139,034 Other Liabilities 7,290 771 8,061 Total liabilities assumed 1,817,365 (720 ) 1,816,645 Excess of assets acquired over liabilities assumed $ 188,272 $ 10,220 198,492 Consideration paid 464,982 Capitalized merger-related expense 1,585 Goodwill recognized $ 268,075 |
Schedule of contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | For loans acquired from SCAF and HEOP, 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 HEOP (dollars in thousands) Contractual amounts due $ 539,806 $ 1,717,230 Cash flows not expected to be collected 2,765 4,442 Expected cash flows 537,041 1,712,788 Interest component of expected cash flows 80,883 348,100 Fair value of acquired loans $ 456,158 $ 1,364,688 |
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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2017 2017 2016 2017 2016 (dollars in thousands) Net interest and other income $ 70,193 $ 62,362 $ 60,304 $ 132,555 $ 119,420 Net income 14,176 10,084 14,584 24,260 25,152 Basic earnings per share 0.36 0.26 0.37 0.62 0.64 Diluted earnings per share 0.35 0.25 0.37 0.60 0.63 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2017 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: Agency $ 54,388 $ 707 $ (24 ) $ 55,071 Corporate 53,498 1,001 (150 ) 54,349 Municipal bonds 247,242 5,194 (358 ) 252,078 Collateralized mortgage obligation: residential 46,095 312 (86 ) 46,321 Mortgage-backed securities: residential 296,324 893 (1,953 ) 295,264 Total investment securities available-for-sale 697,547 8,107 (2,571 ) 703,083 Investment securities held-to-maturity: Mortgage-backed securities: residential 6,586 — (47 ) 6,539 Other 1,164 — — 1,164 Total investment securities held-to-maturity 7,750 — (47 ) 7,703 Total investment securities $ 705,297 $ 8,107 $ (2,618 ) $ 710,786 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. June 30, 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: Agency 1 $ 1,784 $ (24 ) — $ — $ — 1 $ 1,784 $ (24 ) Corporate 2 6,070 (150 ) — — — 2 6,070 (150 ) Municipal bonds 47 24,556 (353 ) 1 418 (5 ) 48 24,974 (358 ) Collateralized mortgage obligation: residential 4 12,517 (86 ) — — — 4 12,517 (86 ) Mortgage-backed securities: residential 55 147,423 (1,638 ) 6 19,244 (315 ) 61 166,667 (1,953 ) Total investment securities available-for-sale 109 192,350 (2,251 ) 7 19,662 (320 ) 116 212,012 (2,571 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 1 6,539 (47 ) — — — 1 6,539 (47 ) Total investment securities held-to-maturity 1 6,539 (47 ) — — — 1 6,539 (47 ) Total investment securities 110 $ 198,889 $ (2,298 ) 7 $ 19,662 $ (320 ) 117 $ 218,551 $ (2,618 ) 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 June 30, 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: Agency $ — $ — $ — $ — $ 15,123 $ 15,248 $ 39,265 $ 39,823 $ 54,388 $ 55,071 Corporate — — — — 53,498 54,349 — — 53,498 54,349 Municipal bonds 3,104 3,107 35,725 36,012 75,712 77,010 132,701 135,949 247,242 252,078 Collateralized mortgage obligation: residential — — — — 3,613 3,661 42,482 42,660 46,095 46,321 Mortgage-backed securities: residential 2,636 2,630 6,327 6,348 49,626 49,839 237,735 236,447 296,324 295,264 Total investment securities available-for-sale 5,740 5,737 42,052 42,360 197,572 200,107 452,183 454,879 697,547 703,083 Investment securities held-to-maturity: Mortgage-backed securities: residential — — — — — — 6,586 6,539 6,586 6,539 Other — — — — — — 1,164 1,164 1,164 1,164 Total investment securities held-to-maturity — — — — — — 7,750 7,703 7,750 7,703 Total investment securities $ 5,740 $ 5,737 $ 42,052 $ 42,360 $ 197,572 $ 200,107 $ 459,933 $ 462,582 $ 705,297 $ 710,786 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2017 December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 733,852 $ 563,169 Franchise 565,415 459,421 Commercial owner occupied (1) 729,476 454,918 SBA 108,224 96,705 Agriculture 98,842 — Real estate loans: Commercial non-owner occupied 1,095,184 586,975 Multi-family 746,547 690,955 One-to-four family (2) 322,048 100,451 Construction 289,600 269,159 Farmland 136,587 — Land 31,799 19,829 Other loans 7,309 4,112 Total gross loans (3) 4,864,883 3,245,694 Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net 568 3,630 Total loans 4,865,451 3,249,324 Less: loans held for sale, at lower of cost or fair value 6,840 7,711 Loans held for investment 4,858,611 3,241,613 Allowance for loan losses (25,055 ) (21,296 ) Loans held for investment, net $ 4,833,556 $ 3,220,317 ______________________________ (1) Secured by real estate. (2) Includes second trust deeds. (3) Total gross loans for June 30, 2017 are net of the unaccreted fair value purchase discounts of $25.2 million . |
Summary of Company's investment in purchased credit impaired loans | The carrying amount of those loans is as follows: June 30, 2017 December 31, 2016 (dollars in thousands) Business loans: Commercial and industrial $ 3,679 $ 2,586 Commercial owner occupied 3,208 491 SBA 361 — Real estate loans: Commercial non-owner occupied 1,151 1,088 Multi-family 237 — One-to-four family 262 1 Construction/Land 549 — Other loans 274 393 Total purchase credit impaired $ 9,721 $ 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 June 30, 2017 , March 31, 2017 and June 30, 2016 and for the six months ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, 2017 March 31, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Balance at the beginning of period $ 3,601 $ 3,747 $ 3,254 $ 3,747 $ 2,726 Additions 2,036 — — 2,036 788 Accretion (712 ) (629 ) (147 ) (1,341 ) (276 ) Payoffs — — (126 ) — (449 ) Reclassification from (to) nonaccretable difference (1,428 ) 483 — (945 ) 192 Balance at the end of period $ 3,497 $ 3,601 $ 2,981 $ 3,497 $ 2,981 |
Summary of Company's investment in impaired loans | The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated: Impaired Loans Contractual Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans (dollars in thousands) June 30, 2017 Business loans: Commercial owner occupied $ 240 $ 206 $ — $ 206 $ — SBA 146 73 — 73 — Real estate loans: One-to-four family 135 104 — 104 — Land 35 12 — 12 — Totals $ 556 $ 395 $ — $ 395 $ — 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 June 30, 2017 March 31, 2017 June 30, 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 $ 7 $ — $ 200 $ 5 $ 350 $ 8 Franchise — — — — 1,461 24 Commercial owner occupied 125 2 192 3 494 9 SBA 222 4 307 5 247 4 Real estate loans: One-to-four family 105 3 116 3 393 5 Land 12 1 14 1 19 1 Totals $ 471 $ 10 $ 829 $ 17 $ 2,964 $ 51 Impaired Loans Six Months Ended June 30, 2017 June 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Business loans: Commercial and industrial $ 200 $ 5 $ 329 $ 13 Franchise — — 1,546 51 Commercial owner occupied 192 5 506 18 SBA 307 9 135 4 Real estate loans: Commercial non-owner occupied — — 71 2 One-to-four family 116 6 322 10 Land 14 2 19 1 Totals $ 829 $ 27 $ 2,928 $ 99 |
Summary of additional detail on components of impaired loans | The following table provides additional detail on the components of impaired loans at the period end indicated: June 30, 2017 December 31, 2016 (dollars in thousands) Nonaccruing loans $ 395 $ 1,141 Accruing loans — — Total impaired loans $ 395 $ 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 June 30, 2017 (dollars in thousands) Business loans: Commercial and industrial $ 715,759 $ 8,972 $ 9,121 $ — $ 733,852 Franchise 565,415 — — — 565,415 Commercial owner occupied 711,959 2,035 15,482 — 729,476 SBA 107,429 10 785 — 108,224 Agriculture 92,522 4,634 1,686 — 98,842 Real estate loans: Commercial non-owner occupied 1,087,928 5,784 1,472 — 1,095,184 Multi-family 745,766 — 781 — 746,547 One-to-four family 321,021 171 856 — 322,048 Construction and land 320,610 — 789 — 321,399 Farmland 134,409 77 2,101 136,587 Other loans 6,975 — 334 — 7,309 Totals $ 4,809,793 $ 21,683 $ 33,407 $ — $ 4,864,883 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 and land 288,973 — 15 — 288,988 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 June 30, 2017 (dollars in thousands) Business loans: Commercial and industrial $ 733,250 $ 225 $ 280 $ 97 $ 733,852 $ — Franchise 565,415 — — — 565,415 — Commercial owner occupied 728,403 — 901 172 729,476 206 SBA 108,057 17 18 132 108,224 73 Agriculture 98,842 — — — 98,842 — Real estate loans: Commercial non-owner occupied 1,094,655 — 529 — 1,095,184 — Multi-family 746,310 — 237 — 746,547 — One-to-four family 321,653 354 — 41 322,048 104 Construction/Land/Other 465,279 4 — 12 465,295 12 Totals $ 4,861,864 $ 600 $ 1,965 $ 454 $ 4,864,883 $ 395 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) | 6 Months Ended |
Jun. 30, 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 and six months ended for the periods indicated: Three Months Ended June 30, 2017 Commercial and industrial Franchise Commercial owner occupied SBA Agriculture Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Other loans Total (dollars in thousands) Balance, March 31, 2017 $ 6,949 $ 4,474 $ 1,232 $ 1,145 $ — $ 1,847 $ 2,803 $ 373 $ 4,027 $ — $ 204 $ 21 $ 23,075 Charge-offs (110 ) — — — — — — — — — — — (110 ) Recoveries 33 — 70 81 — — — 1 — — — 1 186 Provisions for (reduction in) loan losses 772 893 (630 ) 1,293 206 (643 ) (2,192 ) 350 1,009 28 755 63 1,904 Balance, June 30, 2017 $ 7,644 $ 5,367 $ 672 $ 2,519 $ 206 $ 1,204 $ 611 $ 724 $ 5,036 $ 28 $ 959 $ 85 $ 25,055 Six Months Ended June 30, 2017 Commercial and industrial Franchise Commercial owner occupied SBA Agriculture Commercial non-owner occupied Multi-family One-to-four family Construction Farmland 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 (862 ) — — (8 ) — — — — — — — — (870 ) Recoveries 55 — 82 83 — — — 2 — — — 1 223 Provisions for (reduction in) loan losses 2,089 1,522 (603 ) 1,405 206 (511 ) (2,316 ) 357 1,404 28 761 64 4,406 Balance, June 30, 2017 $ 7,644 $ 5,367 $ 672 $ 2,519 $ 206 $ 1,204 $ 611 $ 724 $ 5,036 $ 28 $ 959 $ 85 $ 25,055 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — General portfolio allocation 7,644 5,367 672 2,519 206 1,204 611 724 5,036 28 959 85 25,055 Loans individually evaluated for impairment — — 206 73 — — — 104 — — 12 — 395 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % — % — % — % — % — % — % — % Loans collectively evaluated for impairment $ 733,852 $ 565,415 $ 729,270 $ 101,311 $ 98,842 $ 1,095,184 $ 746,547 $ 321,944 $ 289,600 $ 136,587 $ 31,787 $ 7,309 $ 4,857,648 General reserves to total loans collectively evaluated for impairment 1.04 % 0.95 % 0.09 % 2.49 % 0.21 % 0.11 % 0.08 % 0.22 % 1.74 % 0.02 % 3.02 % 1.16 % 0.52 % Total gross loans held for investment $ 733,852 $ 565,415 $ 729,476 $ 101,384 $ 98,842 $ 1,095,184 $ 746,547 $ 322,048 $ 289,600 $ 136,587 $ 31,799 $ 7,309 $ 4,858,043 Total allowance to gross loans held for investment 1.04 % 0.95 % 0.09 % 2.48 % 0.21 % 0.11 % 0.08 % 0.22 % 1.74 % 0.02 % 3.02 % 1.16 % 0.52 % Three Months Ended June 30, 2016 Commercial and industrial Franchise Commercial owner occupied SBA Warehouse Facilities Commercial non-owner occupied Multi-family One-to-four family Construction Land Other loans Total (dollars in thousands) Balance, March 31, 2016 $ 3,023 $ 3,568 $ 1,965 $ 1,628 $ 7 $ 1,897 $ 2,932 $ 705 $ 2,504 $ 204 $ 22 $ 18,455 Charge-offs (710 ) (169 ) (329 ) (5 ) — — — (7 ) — — — (1,220 ) Recoveries 40 — — 82 — — — 5 — — 4 131 Provisions for (reduction in) loan losses 2,132 (147 ) 505 (146 ) (7 ) 207 (598 ) (96 ) (259 ) — (2 ) 1,589 Balance, June 30, 2016 $ 4,485 $ 3,252 $ 2,141 $ 1,559 $ — $ 2,104 $ 2,334 $ 607 $ 2,245 $ 204 $ 24 $ 18,955 Six Months Ended June 30, 2016 Commercial and industrial Franchise Commercial owner occupied SBA Warehouse Facilities Commercial non-owner occupied Multi-family One-to-four family Construction Land Other loans Total (dollars in thousands) Balance, December 31, 2015 $ 3,449 $ 3,124 $ 1,870 $ 1,500 $ 759 $ 2,048 $ 1,583 $ 698 $ 2,030 $ 233 $ 23 $ 17,317 Charge-offs (710 ) (169 ) (329 ) (5 ) — — — (7 ) — — — (1,220 ) Recoveries 54 — — 85 — — — 6 — — 4 149 Provisions for (reduction in) loan losses 1,692 297 600 (21 ) (759 ) 56 751 (90 ) 215 (29 ) (3 ) 2,709 Balance, June 30, 2016 $ 4,485 $ 3,252 $ 2,141 $ 1,559 $ — $ 2,104 $ 2,334 $ 607 $ 2,245 $ 204 $ 24 $ 18,955 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ 731 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 731 General portfolio allocation 4,485 2,521 2,141 1,559 — 2,104 2,334 607 2,245 204 24 18,224 Loans individually evaluated for impairment 1,051 1,461 486 328 — — — 137 — 18 — 3,481 Specific reserves to total loans individually evaluated for impairment — % 50.03 % — % — % — % — % — % — % — % — % — % 21.00 % Loans collectively evaluated for impairment $ 507,090 $ 402,394 $ 442,574 $ 85,748 $ — $ 526,362 $ 613,573 $ 106,401 $ 215,786 $ 18,323 $ 5,822 $ 2,924,073 General reserves to total loans collectively evaluated for impairment 0.88 % 0.63 % 0.48 % 1.82 % — % 0.40 % 0.38 % 0.57 % 1.04 % 1.11 % 0.41 % 0.62 % Total gross loans held for investment $ 508,141 $ 403,855 $ 443,060 $ 86,076 $ — $ 526,362 $ 613,573 $ 106,538 $ 215,786 $ 18,341 $ 5,822 $ 2,927,554 Total allowance to gross loans held for investment 0.88 % 0.81 % 0.48 % 1.81 % — % 0.40 % 0.38 % 0.57 % 1.04 % 1.11 % 0.41 % 0.65 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, March 31, June 30, June 30, 2017 2017 2016 2017 2016 Weighted average stock options excluded 15,531 — 154,251 7,389 131,703 |
Schedule of Company's unaudited earnings per share calculations | The following tables set forth the Company’s earnings per share calculations for the periods indicated: Three Months Ended June 30, 2017 March 31, 2017 June 30, 2016 Net Shares Per Share Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 14,176 $ 9,521 $ 10,369 Basic income available to common stockholders 14,176 39,586,524 $ 0.36 9,521 27,528,940 $ 0.35 10,369 27,378,930 $ 0.38 Effect of dilutive stock option grants and warrants — 680,696 — 668,280 — 466,560 Diluted income available to common stockholders plus assumed conversions $ 14,176 40,267,220 $ 0.35 $ 9,521 28,197,220 $ 0.34 $ 10,369 27,845,490 $ 0.37 Six Months Ended June 30, 2017 2016 Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 23,697 $ 18,923 Basic income available to common stockholders 23,697 33,591,040 $ 0.71 18,923 26,467,292 $ 0.72 Effect of dilutive stock options and warrants 676,175 434,335 Diluted income available to common stockholders plus assumed conversions $ 23,697 34,267,215 $ 0.69 $ 18,923 26,901,627 $ 0.70 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 229,281 $ 229,281 $ — $ — $ 229,281 Interest-bearing time deposits with financial institutions 3,944 3,944 — — 3,944 Investments held-to-maturity 7,750 — 7,703 — 7,703 Securities available-for-sale 703,083 — 703,083 — 703,083 Federal Reserve Bank and FHLB stock, at cost 56,612 N/A N/A N/A N/A Loans held for sale, net 6,840 — 7,665 — 7,665 Loans held for investment, net 4,858,611 — — 4,843,801 4,843,801 Accrued interest receivable 20,607 20,607 — — 20,607 Liabilities: Deposit accounts 4,946,431 3,745,568 801,765 — 4,547,333 FHLB advances 346,202 — 346,985 — 346,985 Other borrowings 51,065 — 51,742 — 51,742 Subordinated debentures 79,800 — 81,280 — 81,280 Accrued interest payable 443 443 — — 443 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: June 30, 2017 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (dollars in thousands) Investment securities available-for-sale: Agency $ — $ 55,071 $ — $ 55,071 Corporate — 54,349 — 54,349 Municipal bonds — 252,078 — 252,078 Collateralized mortgage obligation: residential — 46,321 — 46,321 Mortgage-backed securities: residential — 295,264 — 295,264 Total securities available-for-sale $ — $ 703,083 $ — $ 703,083 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 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The Company's derivative instruments were acquired as part of the HEOP acquisition, and the Company did not have any at December 31, 2016: June 30, 2017 Derivative Assets Derivative Liabilities Notional Fair Value Notional Fair Value (dollars in thousands) Derivative instruments not designated as hedging instruments: Interest rate swap contracts $ 41,259 $ 1,177 $ 41,259 $ 1,177 Total derivative instruments $ 41,259 $ 1,177 $ 41,259 $ 1,177 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Financial instruments that are eligible for offset in the consolidated statements of financial condition as of June 30, 2017 are presented in the table below: Gross Amounts Not Offset in the Consolidated Gross Amounts Recognized in the Consolidated Balance Sheets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral (1) Net Amount (dollars in thousands) June 30, 2017 Financial assets: Derivatives not designated as $ 1,742 $ (565 ) $ 1,177 — $ 2,100 $ 3,277 Total $ 1,742 $ (565 ) $ 1,177 — $ 2,100 $ 3,277 Financial liabilities: Derivatives not designated as $ 1,177 — $ 1,177 — — $ 1,177 Total $ 1,177 — $ 1,177 — — $ 1,177 (1) Represents cash collateral held with counterparty bank. |
Significant Accounting Polici30
Significant Accounting Policies (Details) - Core deposit | 6 Months Ended |
Jun. 30, 2017 | |
Minimum | |
Significant Accounting Policies | |
Estimated useful lives (in years) | 6 years |
Maximum | |
Significant Accounting Policies | |
Estimated useful lives (in years) | 10 years |
Acquisitions - Heritage Oaks Ba
Acquisitions - Heritage Oaks Bancorp - Narrative (Details) $ / shares in Units, $ in Thousands | Apr. 01, 2017USD ($)shares | Jun. 30, 2017USD ($) | Mar. 31, 2017$ / shares | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jan. 29, 2016$ / shares |
Business Acquisition [Line Items] | ||||||
Assets | $ 6,440,631 | $ 4,036,311 | ||||
Gross loans | 4,864,883 | 3,245,694 | $ 2,927,554 | |||
Deposits | 4,946,431 | 3,145,581 | ||||
Closing stock price of common stock ($ per share) | $ / shares | $ 38.55 | $ 20.53 | ||||
Goodwill | $ 370,564 | $ 102,490 | ||||
Heritage Oaks Bancorp | ||||||
Business Acquisition [Line Items] | ||||||
Assets | $ 2,015,137 | |||||
Gross loans | 1,400,000 | |||||
Deposits | $ 1,700,000 | |||||
Equity issued (shares) | 0.3471 | |||||
Consideration paid | $ 464,982 | |||||
Cash consideration | 3,900 | |||||
Goodwill | $ 268,075 | |||||
Heritage Oaks Bancorp | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares of common stock issued as consideration | shares | 11,959,022 |
Acquisitions - Heritage Oaks 32
Acquisitions - Heritage Oaks Bancorp - Schedule (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 370,564 | $ 102,490 | |
Heritage Oaks Bancorp | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 78,728 | ||
Investment securities | 442,923 | ||
FHLB Stock | 9,739 | ||
Loans, gross | 1,364,688 | ||
Allowance for loan losses | 0 | ||
Fixed assets | 34,902 | ||
Core deposit intangible | 28,123 | ||
Deferred income taxes | 10,559 | ||
Other assets | 45,475 | ||
Total assets acquired | 2,015,137 | ||
Deposits | 1,669,550 | ||
Borrowings | 139,034 | ||
Other Liabilities | 8,061 | ||
Total liabilities assumed | 1,816,645 | ||
Excess of assets acquired over liabilities assumed | 198,492 | ||
Consideration paid | 464,982 | ||
Capitalized merger-related expense | 1,585 | ||
Goodwill | 268,075 | ||
Heritage Oaks Bancorp | Book Value | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 78,728 | ||
Investment securities | 447,520 | ||
FHLB Stock | 9,739 | ||
Loans, gross | 1,387,949 | ||
Allowance for loan losses | (17,200) | ||
Fixed assets | 35,567 | ||
Core deposit intangible | 0 | ||
Deferred income taxes | 17,850 | ||
Other assets | 45,484 | ||
Total assets acquired | 2,005,637 | ||
Deposits | 1,668,079 | ||
Borrowings | 141,996 | ||
Other Liabilities | 7,290 | ||
Total liabilities assumed | 1,817,365 | ||
Excess of assets acquired over liabilities assumed | 188,272 | ||
Heritage Oaks Bancorp | Fair Value Adjustments | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0 | ||
Investment securities | (4,597) | ||
FHLB Stock | 0 | ||
Loans, gross | (23,261) | ||
Allowance for loan losses | 17,200 | ||
Fixed assets | (665) | ||
Core deposit intangible | 28,123 | ||
Deferred income taxes | (7,291) | ||
Other assets | (9) | ||
Total assets acquired | 9,500 | ||
Deposits | 1,471 | ||
Borrowings | (2,962) | ||
Other Liabilities | 771 | ||
Total liabilities assumed | (720) | ||
Excess of assets acquired over liabilities assumed | $ 10,220 |
Acquisitions - Security Califor
Acquisitions - Security California Bancorp - Narrative (Details) $ / shares in Units, $ in Thousands | Jan. 31, 2016USD ($)bankshares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017$ / shares | Dec. 31, 2016USD ($) | Jan. 29, 2016USD ($)$ / shares |
Business Acquisition [Line Items] | ||||||
Assets | $ 6,440,631 | $ 4,036,311 | ||||
Deposits | 4,946,431 | 3,145,581 | ||||
Closing stock price of common stock ($ per share) | $ / shares | $ 38.55 | $ 20.53 | ||||
Goodwill | $ 370,564 | $ 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 | |||||
Security California Bancorp | Common Stock | ||||||
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 Calif34
Acquisitions - Security California Bancorp Schedule (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 370,564 | $ 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 | ||
Security California Bancorp | Book Value | |||
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 | ||
Security California Bancorp | Fair Value Adjustments | |||
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 $ in Thousands | Jun. 30, 2017USD ($) |
Security California Bancorp | |
Business Acquisition [Line Items] | |
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 |
Heritage Oaks Bancorp | |
Business Acquisition [Line Items] | |
Contractual amounts due | 1,717,230 |
Cash flows not expected to be collected | 4,442 |
Expected cash flows | 1,712,788 |
Interest component of expected cash flows | 348,100 |
Fair value of acquired loans | $ 1,364,688 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Combinations [Abstract] | |||||
Net interest and other income | $ 70,193 | $ 62,362 | $ 60,304 | $ 132,555 | $ 119,420 |
Net income | $ 14,176 | $ 10,084 | $ 14,584 | $ 24,260 | $ 25,152 |
Basic earnings per share (in dollars per share) | $ 0.36 | $ 0.26 | $ 0.37 | $ 0.62 | $ 0.64 |
Diluted earnings per share (in dollars per share) | $ 0.35 | $ 0.25 | $ 0.37 | $ 0.60 | $ 0.63 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Total investment securities | ||
Amortized Cost | $ 705,297 | $ 394,227 |
Unrealized Gain | 8,107 | 804 |
Unrealized Loss | (2,618) | (5,607) |
Estimated Fair Value | 710,786 | 389,424 |
Available for sale: | ||
Total | 697,547 | 385,662 |
Unrealized Gain | 8,107 | 804 |
Unrealized Loss | (2,571) | (5,503) |
Investment securities available-for-sale, at fair value | 703,083 | 380,963 |
Held to maturity: | ||
Amortized Cost | 7,750 | 8,565 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (47) | (104) |
Estimated Fair Value | 7,703 | 8,461 |
Agency | ||
Available for sale: | ||
Total | 54,388 | |
Unrealized Gain | 707 | |
Unrealized Loss | (24) | |
Investment securities available-for-sale, at fair value | 55,071 | |
Corporate | ||
Available for sale: | ||
Total | 53,498 | 37,475 |
Unrealized Gain | 1,001 | 372 |
Unrealized Loss | (150) | (205) |
Investment securities available-for-sale, at fair value | 54,349 | 37,642 |
Municipal bonds | ||
Available for sale: | ||
Total | 247,242 | 120,155 |
Unrealized Gain | 5,194 | 338 |
Unrealized Loss | (358) | (1,690) |
Investment securities available-for-sale, at fair value | 252,078 | 118,803 |
Collateralized mortgage obligation: residential | ||
Available for sale: | ||
Total | 46,095 | 31,536 |
Unrealized Gain | 312 | 25 |
Unrealized Loss | (86) | (173) |
Investment securities available-for-sale, at fair value | 46,321 | 31,388 |
Mortgage-backed securities | ||
Available for sale: | ||
Total | 296,324 | 196,496 |
Unrealized Gain | 893 | 69 |
Unrealized Loss | (1,953) | (3,435) |
Investment securities available-for-sale, at fair value | 295,264 | 193,130 |
Held to maturity: | ||
Amortized Cost | 6,586 | 7,375 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (47) | (104) |
Estimated Fair Value | 6,539 | 7,271 |
Other | ||
Held to maturity: | ||
Amortized Cost | 1,164 | 1,190 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | $ 1,164 | $ 1,190 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2017USD ($)purchase_agreement | Jun. 30, 2016USD ($) | 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 | $ 0 | ||||||
Book value | 703,083,000 | 703,083,000 | 380,963,000 | ||||
Accumulated other comprehensive income (loss) before tax amount | 5,500,000 | 5,500,000 | (4,699,000) | ||||
Accumulated other comprehensive income, net of tax | 3,260,000 | 3,260,000 | (2,721,000) | ||||
Gross gains | 2,100,000 | $ 532,000 | 2,100,000 | $ 1,300,000 | |||
Gross losses | 50,000 | 50,000 | 9,000 | ||||
Proceeds from sale or maturity of securities available for sale | 215,000,000 | $ 21,000,000 | 215,000,000 | $ 207,000,000 | |||
FHLB stock | 17,300,000 | 17,300,000 | |||||
FRB stock | 25,000,000 | 25,000,000 | |||||
Other stock | 14,400,000 | 14,400,000 | |||||
Realized OTTI losses | $ 0 | ||||||
Amount of stock repurchased by FHLB | 5,000,000 | ||||||
HOA | |||||||
Investment Securities | |||||||
Value of inverse putable reverse repurchases secured by collateral | 20,900,000 | 20,900,000 | 21,500,000 | ||||
Mortgage-backed securities | |||||||
Investment Securities | |||||||
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 56,000,000 | 56,000,000 | 63,600,000 | ||||
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $ 58,000,000 | $ 58,000,000 | $ 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 | Jun. 30, 2017USD ($)investment_security | Dec. 31, 2016USD ($)investment_security |
Less than 12 months | ||
Number | investment_security | 109 | 215 |
Fair Value | $ 192,350 | $ 262,191 |
Gross Unrealized Holding Losses | $ (2,251) | $ (4,984) |
12 months or Longer | ||
Number | investment_security | 7 | 4 |
Fair Value | $ 19,662 | $ 16,039 |
Gross Unrealized Holding Losses | $ (320) | $ (519) |
Total | ||
Number | investment_security | 116 | 219 |
Fair Value | $ 212,012 | $ 278,230 |
Gross Unrealized Holding Losses | $ (2,571) | $ (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 | $ 6,539 | $ 7,271 |
Held-to-maturity, less than 12 months, gross unrealized holding losses | $ (47) | $ (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 | $ 6,539 | $ 7,271 |
Unrealized Loss | $ (47) | $ (104) |
Total securities, less than 12 months, number of securities | investment_security | 110 | 216 |
Total securities, less than 12 months, fair value | $ 198,889 | $ 269,462 |
Total securities, less than 12 months, gross unrealized holding losses | $ (2,298) | $ (5,088) |
Total securities, 12 months or longer, number of securities | investment_security | 7 | 4 |
Total securities, 12 months or longer, fair value | $ 19,662 | $ 16,039 |
Total securities, 12 months or longer, gross unrealized holding losses | $ (320) | $ (519) |
Total securities, number of securities | investment_security | 117 | 220 |
Total securities, fair value | $ 218,551 | $ 285,501 |
Total securities, gross unrealized holding losses | $ (2,618) | $ (5,607) |
Agency | ||
Less than 12 months | ||
Number | investment_security | 1 | |
Fair Value | $ 1,784 | |
Gross Unrealized Holding Losses | $ (24) | |
12 months or Longer | ||
Number | investment_security | 0 | |
Fair Value | $ 0 | |
Gross Unrealized Holding Losses | $ 0 | |
Total | ||
Number | investment_security | 1 | |
Fair Value | $ 1,784 | |
Gross Unrealized Holding Losses | $ (24) | |
Corporate | ||
Less than 12 months | ||
Number | investment_security | 2 | 3 |
Fair Value | $ 6,070 | $ 7,609 |
Gross Unrealized Holding Losses | $ (150) | $ (205) |
12 months or Longer | ||
Number | investment_security | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Gross Unrealized Holding Losses | $ 0 | $ 0 |
Total | ||
Number | investment_security | 2 | 3 |
Fair Value | $ 6,070 | $ 7,609 |
Gross Unrealized Holding Losses | $ (150) | $ (205) |
Municipal bonds | ||
Less than 12 months | ||
Number | investment_security | 47 | 152 |
Fair Value | $ 24,556 | $ 85,750 |
Gross Unrealized Holding Losses | $ (353) | $ (1,690) |
12 months or Longer | ||
Number | investment_security | 1 | 0 |
Fair Value | $ 418 | $ 0 |
Gross Unrealized Holding Losses | $ (5) | $ 0 |
Total | ||
Number | investment_security | 48 | 152 |
Fair Value | $ 24,974 | $ 85,750 |
Gross Unrealized Holding Losses | $ (358) | $ (1,690) |
Collateralized mortgage obligation: residential | ||
Less than 12 months | ||
Number | investment_security | 4 | 5 |
Fair Value | $ 12,517 | $ 19,092 |
Gross Unrealized Holding Losses | $ (86) | $ (173) |
12 months or Longer | ||
Number | investment_security | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Gross Unrealized Holding Losses | $ 0 | $ 0 |
Total | ||
Number | investment_security | 4 | 5 |
Fair Value | $ 12,517 | $ 19,092 |
Gross Unrealized Holding Losses | $ (86) | $ (173) |
Mortgage-backed securities | ||
Less than 12 months | ||
Number | investment_security | 55 | 55 |
Fair Value | $ 147,423 | $ 149,740 |
Gross Unrealized Holding Losses | $ (1,638) | $ (2,916) |
12 months or Longer | ||
Number | investment_security | 6 | 4 |
Fair Value | $ 19,244 | $ 16,039 |
Gross Unrealized Holding Losses | $ (315) | $ (519) |
Total | ||
Number | investment_security | 61 | 59 |
Fair Value | $ 166,667 | $ 165,779 |
Gross Unrealized Holding Losses | $ (1,953) | $ (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 | $ 6,539 | $ 7,271 |
Held-to-maturity, less than 12 months, gross unrealized holding losses | $ (47) | $ (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 | $ 6,539 | $ 7,271 |
Unrealized Loss | $ (47) | $ (104) |
Investment Securities - By Cont
Investment Securities - By Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
One Year or Less | $ 5,740 | |
More than One Year to Five Years | 42,052 | |
More than Five Years to Ten Years | 197,572 | |
More than Ten Years | 459,933 | |
Total | 705,297 | |
Fair Value | ||
One Year or Less | 5,737 | |
More than One Year to Five Years | 42,360 | |
More than Five Years to Ten Years | 200,107 | |
More than Ten Years | 462,582 | |
Total | 710,786 | |
Amortized Cost | ||
One Year or Less | 5,740 | |
More than One Year to Five Years | 42,052 | |
More than Five Years to Ten Years | 197,572 | |
More than Ten Years | 452,183 | |
Total | 697,547 | $ 385,662 |
Fair Value | ||
One Year or Less | 5,737 | |
More than One Year to Five Years | 42,360 | |
More than Five Years to Ten Years | 200,107 | |
More than Ten Years | 454,879 | |
Total | 703,083 | 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 | 7,750 | |
Amortized Cost | 7,750 | 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 | 7,703 | |
Total | 7,703 | 8,461 |
Agency | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 15,123 | |
More than Ten Years | 39,265 | |
Total | 54,388 | |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 15,248 | |
More than Ten Years | 39,823 | |
Total | 55,071 | |
Corporate | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 53,498 | |
More than Ten Years | 0 | |
Total | 53,498 | 37,475 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 54,349 | |
More than Ten Years | 0 | |
Total | 54,349 | 37,642 |
Municipal bonds | ||
Amortized Cost | ||
One Year or Less | 3,104 | |
More than One Year to Five Years | 35,725 | |
More than Five Years to Ten Years | 75,712 | |
More than Ten Years | 132,701 | |
Total | 247,242 | 120,155 |
Fair Value | ||
One Year or Less | 3,107 | |
More than One Year to Five Years | 36,012 | |
More than Five Years to Ten Years | 77,010 | |
More than Ten Years | 135,949 | |
Total | 252,078 | 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 | 3,613 | |
More than Ten Years | 42,482 | |
Total | 46,095 | 31,536 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 3,661 | |
More than Ten Years | 42,660 | |
Total | 46,321 | 31,388 |
Mortgage-backed securities | ||
Amortized Cost | ||
One Year or Less | 2,636 | |
More than One Year to Five Years | 6,327 | |
More than Five Years to Ten Years | 49,626 | |
More than Ten Years | 237,735 | |
Total | 296,324 | 196,496 |
Fair Value | ||
One Year or Less | 2,630 | |
More than One Year to Five Years | 6,348 | |
More than Five Years to Ten Years | 49,839 | |
More than Ten Years | 236,447 | |
Total | 295,264 | 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 | 6,586 | |
Amortized Cost | 6,586 | 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 | 6,539 | |
Total | 6,539 | $ 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 | 1,164 | |
Amortized Cost | 1,164 | |
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 | 1,164 | |
Total | $ 1,164 |
Loans Held for Investment - Com
Loans Held for Investment - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Loans Held for Investment | ||||||
Gross loans | $ 4,864,883 | $ 3,245,694 | $ 2,927,554 | |||
Gross loans, excluding loan receivable held for sale | 4,858,043 | |||||
Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net | 568 | 3,630 | ||||
Total loans | 4,865,451 | 3,249,324 | ||||
Less: loans held for sale, at lower of cost or fair value | 6,840 | 7,711 | ||||
Loans held for investment | 4,858,611 | 3,241,613 | ||||
Allowance for loan losses | (25,055) | $ (23,075) | (21,296) | (18,955) | $ (18,455) | $ (17,317) |
Loans held for investment, net | 4,833,556 | 3,220,317 | ||||
Unaccreted mark-to-market discount | (25,200) | |||||
Commercial and industrial | ||||||
Loans Held for Investment | ||||||
Gross loans | 733,852 | 563,169 | 508,141 | |||
Allowance for loan losses | (7,644) | (6,949) | (6,362) | (4,485) | (3,023) | (3,449) |
Franchise | ||||||
Loans Held for Investment | ||||||
Gross loans | 565,415 | 459,421 | 403,855 | |||
Allowance for loan losses | (5,367) | (4,474) | (3,845) | (3,252) | (3,568) | (3,124) |
Commercial owner occupied | ||||||
Loans Held for Investment | ||||||
Gross loans | 729,476 | 454,918 | 443,060 | |||
Allowance for loan losses | (672) | (1,232) | (1,193) | (2,141) | (1,965) | (1,870) |
SBA | ||||||
Loans Held for Investment | ||||||
Gross loans | 108,224 | 96,705 | 86,076 | |||
Gross loans, excluding loan receivable held for sale | 101,384 | |||||
Allowance for loan losses | (2,519) | (1,145) | (1,039) | (1,559) | (1,628) | (1,500) |
Agriculture | ||||||
Loans Held for Investment | ||||||
Gross loans | 98,842 | 0 | ||||
Allowance for loan losses | (206) | 0 | 0 | |||
Commercial non-owner occupied | ||||||
Loans Held for Investment | ||||||
Gross loans | 1,095,184 | 586,975 | 526,362 | |||
Allowance for loan losses | (1,204) | (1,847) | (1,715) | (2,104) | (1,897) | (2,048) |
Multi-family | ||||||
Loans Held for Investment | ||||||
Gross loans | 746,547 | 690,955 | 613,573 | |||
Allowance for loan losses | (611) | (2,803) | (2,927) | (2,334) | (2,932) | (1,583) |
One-to-four family | ||||||
Loans Held for Investment | ||||||
Gross loans | 322,048 | 100,451 | 106,538 | |||
Allowance for loan losses | (724) | (373) | (365) | (607) | (705) | (698) |
Construction | ||||||
Loans Held for Investment | ||||||
Gross loans | 465,295 | 269,159 | 215,786 | |||
Gross loans, excluding loan receivable held for sale | 289,600 | |||||
Allowance for loan losses | (5,036) | (4,027) | (3,632) | (2,245) | (2,504) | (2,030) |
Farmland | ||||||
Loans Held for Investment | ||||||
Gross loans | 136,587 | 0 | ||||
Allowance for loan losses | (28) | 0 | 0 | |||
Land | ||||||
Loans Held for Investment | ||||||
Gross loans | 31,799 | 19,829 | 18,341 | |||
Allowance for loan losses | (959) | (204) | (198) | (204) | (204) | (233) |
Other loans | ||||||
Loans Held for Investment | ||||||
Gross loans | 7,309 | 4,112 | 5,822 | |||
Allowance for loan losses | $ (85) | $ (21) | $ (20) | $ (24) | $ (22) | $ (23) |
Loans Held for Investment - Nar
Loans Held for Investment - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2017USD ($)areagrade | Dec. 31, 2016USD ($) | |
Receivables [Abstract] | ||
Secured loans limit to one borrower | $ 261,400,000 | |
Unsecured loans limit to one borrower | 156,800,000 | |
Aggregate outstanding balance of loans to one borrower of secured credit | 35,000,000 | |
Outstanding balance | 9,721,000 | $ 4,559,000 |
Purchased credit impaired loans, nonaccrual status | 0 | |
Nonaccruing loans | 395,000 | 1,141,000 |
Non-owner Occupied Commercial Real Estate in Process of Foreclosure, Amount | 529,000 | |
Owner Occupied Commercial Real Estate in Process of Foreclosure, Amount | 124,000 | |
Investment in TDR | 1,600,000 | |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Loans Held for Investment | ||
Total purchase credit impaired | $ 9,721 | $ 4,559 |
Commercial and industrial | ||
Loans Held for Investment | ||
Total purchase credit impaired | 3,679 | 2,586 |
Commercial owner occupied | ||
Loans Held for Investment | ||
Total purchase credit impaired | 3,208 | 491 |
SBA | ||
Loans Held for Investment | ||
Total purchase credit impaired | 361 | 0 |
Commercial non-owner occupied | ||
Loans Held for Investment | ||
Total purchase credit impaired | 1,151 | 1,088 |
Multi-family | ||
Loans Held for Investment | ||
Total purchase credit impaired | 237 | 0 |
One-to-four family | ||
Loans Held for Investment | ||
Total purchase credit impaired | 262 | 1 |
Construction | ||
Loans Held for Investment | ||
Total purchase credit impaired | 549 | 0 |
Other loans | ||
Loans Held for Investment | ||
Total purchase credit impaired | $ 274 | $ 393 |
Loans Held for Investment - Acc
Loans Held for Investment - Accretable Yield Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accretable yield on purchased credit impaired | |||||
Balance at the beginning of period | $ 3,601 | $ 3,747 | $ 3,254 | $ 3,747 | $ 2,726 |
Additions | 2,036 | 0 | 0 | 2,036 | 788 |
Accretion | (712) | (629) | (147) | (1,341) | (276) |
Payoffs | 0 | 0 | (126) | 0 | (449) |
Reclassification from (to) nonaccretable difference | (1,428) | 483 | 0 | (945) | 192 |
Balance at the end of period | $ 3,497 | $ 3,601 | $ 2,981 | $ 3,497 | $ 2,981 |
Loans Held for Investment - C45
Loans Held for Investment - Company's Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Impaired Loans | ||||||
Contractual Unpaid Principal Balance | $ 556 | $ 556 | $ 7,029 | |||
Total impaired loans | 395 | 395 | 1,141 | |||
With Specific Allowance | 0 | 0 | 250 | |||
Without Specific Allowance | 395 | 395 | 891 | |||
Specific Allowance for Impaired Loans | 0 | $ 731 | 0 | $ 731 | 250 | |
Average Recorded Investment | 471 | $ 829 | 2,964 | 829 | 2,928 | |
Interest Income Recognized | 10 | 17 | 51 | 27 | 99 | |
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 | 0 | 0 | 0 | 250 | |
Average Recorded Investment | 7 | 200 | 350 | 200 | 329 | |
Interest Income Recognized | 0 | 5 | 8 | 5 | 13 | |
Franchise | ||||||
Impaired Loans | ||||||
Specific Allowance for Impaired Loans | 0 | 731 | 0 | 731 | ||
Average Recorded Investment | 0 | 0 | 1,461 | 0 | 1,546 | |
Interest Income Recognized | 0 | 0 | 24 | 0 | 51 | |
Commercial owner occupied | ||||||
Impaired Loans | ||||||
Contractual Unpaid Principal Balance | 240 | 240 | 847 | |||
Total impaired loans | 206 | 206 | 436 | |||
With Specific Allowance | 0 | 0 | 0 | |||
Without Specific Allowance | 206 | 206 | 436 | |||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 125 | 192 | 494 | 192 | 506 | |
Interest Income Recognized | 2 | 3 | 9 | 5 | 18 | |
SBA | ||||||
Impaired Loans | ||||||
Contractual Unpaid Principal Balance | 146 | 146 | 3,865 | |||
Total impaired loans | 73 | 73 | 316 | |||
With Specific Allowance | 0 | 0 | 0 | |||
Without Specific Allowance | 73 | 73 | 316 | |||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 222 | 307 | 247 | 307 | 135 | |
Interest Income Recognized | 4 | 5 | 4 | 9 | 4 | |
Commercial non-owner occupied | ||||||
Impaired Loans | ||||||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 71 | ||||
Interest Income Recognized | 0 | 2 | ||||
One-to-four family | ||||||
Impaired Loans | ||||||
Contractual Unpaid Principal Balance | 135 | 135 | 291 | |||
Total impaired loans | 104 | 104 | 124 | |||
With Specific Allowance | 0 | 0 | 0 | |||
Without Specific Allowance | 104 | 104 | 124 | |||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 105 | 116 | 393 | 116 | 322 | |
Interest Income Recognized | 3 | 3 | 5 | 6 | 10 | |
Land | ||||||
Impaired Loans | ||||||
Contractual Unpaid Principal Balance | 35 | 35 | 36 | |||
Total impaired loans | 12 | 12 | 15 | |||
With Specific Allowance | 0 | 0 | 0 | |||
Without Specific Allowance | 12 | 12 | 15 | |||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | $ 0 | |
Average Recorded Investment | 12 | 14 | 19 | 14 | 19 | |
Interest Income Recognized | $ 1 | $ 1 | $ 1 | $ 2 | $ 1 |
Loans Held for Investment - C46
Loans Held for Investment - Components of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Nonaccruing loans | $ 395 | $ 1,141 |
Accruing loans | 0 | 0 |
Total impaired loans | $ 395 | $ 1,141 |
Loans Held for Investment - Int
Loans Held for Investment - Internal Risk Grading System (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Credit Risk Grades | |||
Gross loans | $ 4,864,883 | $ 3,245,694 | $ 2,927,554 |
Commercial and industrial | |||
Credit Risk Grades | |||
Gross loans | 733,852 | 563,169 | 508,141 |
Franchise | |||
Credit Risk Grades | |||
Gross loans | 565,415 | 459,421 | 403,855 |
Commercial owner occupied | |||
Credit Risk Grades | |||
Gross loans | 729,476 | 454,918 | 443,060 |
SBA | |||
Credit Risk Grades | |||
Gross loans | 108,224 | 96,705 | 86,076 |
Agriculture | |||
Credit Risk Grades | |||
Gross loans | 98,842 | 0 | |
Commercial non-owner occupied | |||
Credit Risk Grades | |||
Gross loans | 1,095,184 | 586,975 | 526,362 |
Multi-family | |||
Credit Risk Grades | |||
Gross loans | 746,547 | 690,955 | 613,573 |
One-to-four family | |||
Credit Risk Grades | |||
Gross loans | 322,048 | 100,451 | 106,538 |
Construction and land | |||
Credit Risk Grades | |||
Gross loans | 321,399 | 288,988 | |
Farmland | |||
Credit Risk Grades | |||
Gross loans | 136,587 | 0 | |
Other loans | |||
Credit Risk Grades | |||
Gross loans | 7,309 | 4,112 | $ 5,822 |
Pass | |||
Credit Risk Grades | |||
Gross loans | 4,809,793 | 3,216,683 | |
Pass | Commercial and industrial | |||
Credit Risk Grades | |||
Gross loans | 715,759 | 550,919 | |
Pass | Franchise | |||
Credit Risk Grades | |||
Gross loans | 565,415 | 459,421 | |
Pass | Commercial owner occupied | |||
Credit Risk Grades | |||
Gross loans | 711,959 | 450,416 | |
Pass | SBA | |||
Credit Risk Grades | |||
Gross loans | 107,429 | 96,190 | |
Pass | Agriculture | |||
Credit Risk Grades | |||
Gross loans | 92,522 | ||
Pass | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Gross loans | 1,087,928 | 585,093 | |
Pass | Multi-family | |||
Credit Risk Grades | |||
Gross loans | 745,766 | 681,942 | |
Pass | One-to-four family | |||
Credit Risk Grades | |||
Gross loans | 321,021 | 100,010 | |
Pass | Construction and land | |||
Credit Risk Grades | |||
Gross loans | 320,610 | 288,973 | |
Pass | Farmland | |||
Credit Risk Grades | |||
Gross loans | 134,409 | ||
Pass | Other loans | |||
Credit Risk Grades | |||
Gross loans | 6,975 | 3,719 | |
Special Mention | |||
Credit Risk Grades | |||
Gross loans | 21,683 | 15,970 | |
Special Mention | Commercial and industrial | |||
Credit Risk Grades | |||
Gross loans | 8,972 | 8,216 | |
Special Mention | Franchise | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Special Mention | Commercial owner occupied | |||
Credit Risk Grades | |||
Gross loans | 2,035 | 281 | |
Special Mention | SBA | |||
Credit Risk Grades | |||
Gross loans | 10 | 53 | |
Special Mention | Agriculture | |||
Credit Risk Grades | |||
Gross loans | 4,634 | ||
Special Mention | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Gross loans | 5,784 | 810 | |
Special Mention | Multi-family | |||
Credit Risk Grades | |||
Gross loans | 0 | 6,610 | |
Special Mention | One-to-four family | |||
Credit Risk Grades | |||
Gross loans | 171 | 0 | |
Special Mention | Construction and land | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Special Mention | Farmland | |||
Credit Risk Grades | |||
Gross loans | 77 | ||
Special Mention | Other loans | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Substandard | |||
Credit Risk Grades | |||
Gross loans | 33,407 | 12,791 | |
Substandard | Commercial and industrial | |||
Credit Risk Grades | |||
Gross loans | 9,121 | 3,784 | |
Substandard | Franchise | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Substandard | Commercial owner occupied | |||
Credit Risk Grades | |||
Gross loans | 15,482 | 4,221 | |
Substandard | SBA | |||
Credit Risk Grades | |||
Gross loans | 785 | 462 | |
Substandard | Agriculture | |||
Credit Risk Grades | |||
Gross loans | 1,686 | ||
Substandard | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Gross loans | 1,472 | 1,072 | |
Substandard | Multi-family | |||
Credit Risk Grades | |||
Gross loans | 781 | 2,403 | |
Substandard | One-to-four family | |||
Credit Risk Grades | |||
Gross loans | 856 | 441 | |
Substandard | Construction and land | |||
Credit Risk Grades | |||
Gross loans | 789 | 15 | |
Substandard | Farmland | |||
Credit Risk Grades | |||
Gross loans | 2,101 | ||
Substandard | Other loans | |||
Credit Risk Grades | |||
Gross loans | 334 | 393 | |
Doubtful | |||
Credit Risk Grades | |||
Gross loans | 0 | 250 | |
Doubtful | Commercial and industrial | |||
Credit Risk Grades | |||
Gross loans | 0 | 250 | |
Doubtful | Franchise | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Doubtful | Commercial owner occupied | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Doubtful | SBA | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Doubtful | Agriculture | |||
Credit Risk Grades | |||
Gross loans | 0 | ||
Doubtful | Commercial non-owner occupied | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Doubtful | Multi-family | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Doubtful | One-to-four family | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Doubtful | Construction and land | |||
Credit Risk Grades | |||
Gross loans | 0 | 0 | |
Doubtful | Other loans | |||
Credit Risk Grades | |||
Gross loans | $ 0 | $ 0 |
Loans Held for Investment - Del
Loans Held for Investment - Delinquencies (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Other information concerning the credit quality | |||
Gross loans | $ 4,864,883 | $ 3,245,694 | $ 2,927,554 |
Non-Accruing | 395 | 1,141 | |
Commercial and industrial | |||
Other information concerning the credit quality | |||
Gross loans | 733,852 | 563,169 | 508,141 |
Non-Accruing | 0 | 250 | |
Franchise | |||
Other information concerning the credit quality | |||
Gross loans | 565,415 | 459,421 | 403,855 |
Non-Accruing | 0 | 0 | |
Commercial owner occupied | |||
Other information concerning the credit quality | |||
Gross loans | 729,476 | 454,918 | 443,060 |
Non-Accruing | 206 | 436 | |
SBA | |||
Other information concerning the credit quality | |||
Gross loans | 108,224 | 96,705 | 86,076 |
Non-Accruing | 73 | 316 | |
Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Gross loans | 1,095,184 | 586,975 | 526,362 |
Non-Accruing | 0 | 0 | |
Multi-family | |||
Other information concerning the credit quality | |||
Gross loans | 746,547 | 690,955 | 613,573 |
Non-Accruing | 0 | 0 | |
One-to-four family | |||
Other information concerning the credit quality | |||
Gross loans | 322,048 | 100,451 | 106,538 |
Non-Accruing | 104 | 124 | |
Construction | |||
Other information concerning the credit quality | |||
Gross loans | 465,295 | 269,159 | 215,786 |
Non-Accruing | 12 | 0 | |
Land | |||
Other information concerning the credit quality | |||
Gross loans | 31,799 | 19,829 | 18,341 |
Non-Accruing | 12 | 15 | |
Other loans | |||
Other information concerning the credit quality | |||
Gross loans | 7,309 | 4,112 | $ 5,822 |
Non-Accruing | 0 | 0 | |
Current | |||
Other information concerning the credit quality | |||
Current | 4,861,864 | 3,244,862 | |
Current | Commercial and industrial | |||
Other information concerning the credit quality | |||
Current | 733,250 | 562,805 | |
Current | Franchise | |||
Other information concerning the credit quality | |||
Current | 565,415 | 459,421 | |
Current | Commercial owner occupied | |||
Other information concerning the credit quality | |||
Current | 728,403 | 454,918 | |
Current | SBA | |||
Other information concerning the credit quality | |||
Current | 108,057 | 96,389 | |
Current | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Current | 1,094,655 | 586,975 | |
Current | Multi-family | |||
Other information concerning the credit quality | |||
Current | 746,310 | 690,955 | |
Current | One-to-four family | |||
Other information concerning the credit quality | |||
Current | 321,653 | 100,314 | |
Current | Construction | |||
Other information concerning the credit quality | |||
Current | 465,279 | 269,159 | |
Current | Land | |||
Other information concerning the credit quality | |||
Current | 31,772 | 19,814 | |
Current | Other loans | |||
Other information concerning the credit quality | |||
Current | 7,226 | 4,112 | |
30-59 | |||
Other information concerning the credit quality | |||
Days Past Due | 600 | 122 | |
30-59 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 225 | 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 | 0 | 0 | |
30-59 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 17 | 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 | 354 | 18 | |
30-59 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 4 | 0 | |
30-59 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 15 | 0 | |
30-59 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | 83 | 0 | |
60-89 | |||
Other information concerning the credit quality | |||
Days Past Due | 1,965 | 71 | |
60-89 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 280 | 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 | 901 | 0 | |
60-89 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 18 | 0 | |
60-89 | Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 529 | 0 | |
60-89 | Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 237 | 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 | 454 | 639 | |
90 | Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 97 | 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 | 172 | 0 | |
90 | SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 132 | 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 | 41 | 48 | |
90 | Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 12 | 0 | |
90 | Land | |||
Other information concerning the credit quality | |||
Days Past Due | 12 | 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 | 6 Months Ended | |||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | $ 23,075 | $ 21,296 | $ 18,455 | $ 21,296 | $ 17,317 | ||
Charge-offs | (110) | $ (1,220) | (870) | (1,220) | |||
Recoveries | 186 | 131 | 223 | 149 | |||
Provisions for (reduction in) loan losses | 1,904 | 2,502 | 1,589 | 1,589 | 4,406 | 2,709 | |
Balance, at the end of the period | 25,055 | 23,075 | 18,955 | 25,055 | 18,955 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 731 | 0 | 731 | $ 250 | ||
Amount of allowance attributed to: General portfolio allocation | 25,055 | 18,224 | 25,055 | 18,224 | |||
Loans individually evaluated for impairment | 395 | 3,481 | $ 395 | $ 3,481 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 21.00% | |||||
Loans collectively evaluated for impairment | 4,857,648 | 2,924,073 | $ 4,857,648 | $ 2,924,073 | |||
General reserves to total loans collectively evaluated for impairment | 0.52% | 0.62% | |||||
Gross loans | 4,864,883 | 2,927,554 | $ 4,864,883 | $ 2,927,554 | 3,245,694 | ||
Gross loans, excluding loan receivable held for sale | 4,858,043 | $ 4,858,043 | |||||
Total allowance to gross loans | 0.52% | 0.65% | |||||
Commercial and industrial | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 6,949 | 6,362 | 3,023 | $ 6,362 | $ 3,449 | ||
Charge-offs | (110) | (710) | (862) | (710) | |||
Recoveries | 33 | 40 | 55 | 54 | |||
Provisions for (reduction in) loan losses | 772 | 2,132 | 2,089 | 1,692 | |||
Balance, at the end of the period | 7,644 | 6,949 | 4,485 | 7,644 | 4,485 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 250 | ||
Amount of allowance attributed to: General portfolio allocation | 7,644 | 4,485 | 7,644 | 4,485 | |||
Loans individually evaluated for impairment | 0 | 1,051 | $ 0 | $ 1,051 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 733,852 | 507,090 | $ 733,852 | $ 507,090 | |||
General reserves to total loans collectively evaluated for impairment | 1.04% | 0.88% | |||||
Gross loans | 733,852 | 508,141 | $ 733,852 | $ 508,141 | 563,169 | ||
Total allowance to gross loans | 1.04% | 0.88% | |||||
Franchise | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 4,474 | 3,845 | 3,568 | $ 3,845 | $ 3,124 | ||
Charge-offs | 0 | (169) | 0 | (169) | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions for (reduction in) loan losses | 893 | (147) | 1,522 | 297 | |||
Balance, at the end of the period | 5,367 | 4,474 | 3,252 | 5,367 | 3,252 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 731 | 0 | 731 | |||
Amount of allowance attributed to: General portfolio allocation | 5,367 | 2,521 | 5,367 | 2,521 | |||
Loans individually evaluated for impairment | 0 | 1,461 | $ 0 | $ 1,461 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 50.03% | |||||
Loans collectively evaluated for impairment | 565,415 | 402,394 | $ 565,415 | $ 402,394 | |||
General reserves to total loans collectively evaluated for impairment | 0.95% | 0.63% | |||||
Gross loans | 565,415 | 403,855 | $ 565,415 | $ 403,855 | 459,421 | ||
Total allowance to gross loans | 0.95% | 0.81% | |||||
Commercial owner occupied | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 1,232 | 1,193 | 1,965 | $ 1,193 | $ 1,870 | ||
Charge-offs | 0 | (329) | 0 | (329) | |||
Recoveries | 70 | 0 | 82 | 0 | |||
Provisions for (reduction in) loan losses | (630) | 505 | (603) | 600 | |||
Balance, at the end of the period | 672 | 1,232 | 2,141 | 672 | 2,141 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 672 | 2,141 | 672 | 2,141 | |||
Loans individually evaluated for impairment | 206 | 486 | $ 206 | $ 486 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 729,270 | 442,574 | $ 729,270 | $ 442,574 | |||
General reserves to total loans collectively evaluated for impairment | 0.09% | 0.48% | |||||
Gross loans | 729,476 | 443,060 | $ 729,476 | $ 443,060 | 454,918 | ||
Total allowance to gross loans | 0.09% | 0.48% | |||||
SBA | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 1,145 | 1,039 | 1,628 | $ 1,039 | $ 1,500 | ||
Charge-offs | 0 | (5) | (8) | (5) | |||
Recoveries | 81 | 82 | 83 | 85 | |||
Provisions for (reduction in) loan losses | 1,293 | (146) | 1,405 | (21) | |||
Balance, at the end of the period | 2,519 | 1,145 | 1,559 | 2,519 | 1,559 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 2,519 | 1,559 | 2,519 | 1,559 | |||
Loans individually evaluated for impairment | 73 | 328 | $ 73 | $ 328 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 101,311 | 85,748 | $ 101,311 | $ 85,748 | |||
General reserves to total loans collectively evaluated for impairment | 2.49% | 1.82% | |||||
Gross loans | 108,224 | 86,076 | $ 108,224 | $ 86,076 | 96,705 | ||
Gross loans, excluding loan receivable held for sale | 101,384 | $ 101,384 | |||||
Total allowance to gross loans | 2.48% | 1.81% | |||||
Agriculture | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 0 | 0 | $ 0 | ||||
Charge-offs | 0 | 0 | |||||
Recoveries | 0 | ||||||
Provisions for (reduction in) loan losses | 206 | 206 | |||||
Balance, at the end of the period | 206 | 0 | 206 | ||||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |||||
Amount of allowance attributed to: General portfolio allocation | 206 | 206 | |||||
Loans individually evaluated for impairment | 0 | $ 0 | |||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | ||||||
Loans collectively evaluated for impairment | 98,842 | $ 98,842 | |||||
General reserves to total loans collectively evaluated for impairment | 0.21% | ||||||
Gross loans | 98,842 | $ 98,842 | 0 | ||||
Total allowance to gross loans | 0.21% | ||||||
Warehouse facilities | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 7 | $ 759 | |||||
Charge-offs | 0 | 0 | |||||
Recoveries | 0 | 0 | |||||
Provisions for (reduction in) loan losses | (7) | (759) | |||||
Balance, at the end of the period | 0 | 0 | |||||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |||||
Amount of allowance attributed to: General portfolio allocation | 0 | 0 | |||||
Loans individually evaluated for impairment | 0 | $ 0 | |||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | ||||||
Loans collectively evaluated for impairment | 0 | $ 0 | |||||
General reserves to total loans collectively evaluated for impairment | 0.00% | ||||||
Gross loans | 0 | $ 0 | |||||
Total allowance to gross loans | 0.00% | ||||||
Commercial non-owner occupied | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 1,847 | 1,715 | 1,897 | $ 1,715 | $ 2,048 | ||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions for (reduction in) loan losses | (643) | 207 | (511) | 56 | |||
Balance, at the end of the period | 1,204 | 1,847 | 2,104 | 1,204 | 2,104 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | |||
Amount of allowance attributed to: General portfolio allocation | 1,204 | 2,104 | 1,204 | 2,104 | |||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 1,095,184 | 526,362 | $ 1,095,184 | $ 526,362 | |||
General reserves to total loans collectively evaluated for impairment | 0.11% | 0.40% | |||||
Gross loans | 1,095,184 | 526,362 | $ 1,095,184 | $ 526,362 | 586,975 | ||
Total allowance to gross loans | 0.11% | 0.40% | |||||
Multi-family | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 2,803 | 2,927 | 2,932 | $ 2,927 | $ 1,583 | ||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions for (reduction in) loan losses | (2,192) | (598) | (2,316) | 751 | |||
Balance, at the end of the period | 611 | 2,803 | 2,334 | 611 | 2,334 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | |||
Amount of allowance attributed to: General portfolio allocation | 611 | 2,334 | 611 | 2,334 | |||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 746,547 | 613,573 | $ 746,547 | $ 613,573 | |||
General reserves to total loans collectively evaluated for impairment | 0.08% | 0.38% | |||||
Gross loans | 746,547 | 613,573 | $ 746,547 | $ 613,573 | 690,955 | ||
Total allowance to gross loans | 0.08% | 0.38% | |||||
One-to-four family | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 373 | 365 | 705 | $ 365 | $ 698 | ||
Charge-offs | 0 | (7) | 0 | (7) | |||
Recoveries | 1 | 5 | 2 | 6 | |||
Provisions for (reduction in) loan losses | 350 | (96) | 357 | (90) | |||
Balance, at the end of the period | 724 | 373 | 607 | 724 | 607 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 724 | 607 | 724 | 607 | |||
Loans individually evaluated for impairment | 104 | 137 | $ 104 | $ 137 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 321,944 | 106,401 | $ 321,944 | $ 106,401 | |||
General reserves to total loans collectively evaluated for impairment | 0.22% | 0.57% | |||||
Gross loans | 322,048 | 106,538 | $ 322,048 | $ 106,538 | 100,451 | ||
Total allowance to gross loans | 0.22% | 0.57% | |||||
Construction | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 4,027 | 3,632 | 2,504 | $ 3,632 | $ 2,030 | ||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions for (reduction in) loan losses | 1,009 | (259) | 1,404 | 215 | |||
Balance, at the end of the period | 5,036 | 4,027 | 2,245 | 5,036 | 2,245 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | |||
Amount of allowance attributed to: General portfolio allocation | 5,036 | 2,245 | 5,036 | 2,245 | |||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 289,600 | 215,786 | $ 289,600 | $ 215,786 | |||
General reserves to total loans collectively evaluated for impairment | 1.74% | 1.04% | |||||
Gross loans | 465,295 | 215,786 | $ 465,295 | $ 215,786 | 269,159 | ||
Gross loans, excluding loan receivable held for sale | 289,600 | $ 289,600 | |||||
Total allowance to gross loans | 1.74% | 1.04% | |||||
Farmland | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 0 | 0 | $ 0 | ||||
Charge-offs | 0 | 0 | |||||
Recoveries | 0 | ||||||
Provisions for (reduction in) loan losses | 28 | 28 | |||||
Balance, at the end of the period | 28 | 0 | 28 | ||||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |||||
Amount of allowance attributed to: General portfolio allocation | 28 | 28 | |||||
Loans individually evaluated for impairment | 0 | $ 0 | |||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | ||||||
Loans collectively evaluated for impairment | 136,587 | $ 136,587 | |||||
General reserves to total loans collectively evaluated for impairment | 0.02% | ||||||
Gross loans | 136,587 | $ 136,587 | 0 | ||||
Total allowance to gross loans | 0.02% | ||||||
Land | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 204 | 198 | 204 | $ 198 | $ 233 | ||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions for (reduction in) loan losses | 755 | 0 | 761 | (29) | |||
Balance, at the end of the period | 959 | 204 | 204 | 959 | 204 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||
Amount of allowance attributed to: General portfolio allocation | 959 | 204 | 959 | 204 | |||
Loans individually evaluated for impairment | 12 | 18 | $ 12 | $ 18 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 31,787 | 18,323 | $ 31,787 | $ 18,323 | |||
General reserves to total loans collectively evaluated for impairment | 3.02% | 1.11% | |||||
Gross loans | 31,799 | 18,341 | $ 31,799 | $ 18,341 | 19,829 | ||
Total allowance to gross loans | 3.02% | 1.11% | |||||
Other loans | |||||||
Allocation of allowance as well as the activity in allowance | |||||||
Balance, at the beginning of the period | 21 | 20 | 22 | $ 20 | $ 23 | ||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 1 | 4 | 1 | 4 | |||
Provisions for (reduction in) loan losses | 63 | $ (2) | 64 | (3) | |||
Balance, at the end of the period | 85 | $ 21 | 24 | 85 | 24 | ||
Other disclosures | |||||||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | |||
Amount of allowance attributed to: General portfolio allocation | 85 | 24 | 85 | 24 | |||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | |||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |||||
Loans collectively evaluated for impairment | 7,309 | 5,822 | $ 7,309 | $ 5,822 | |||
General reserves to total loans collectively evaluated for impairment | 1.16% | 0.41% | |||||
Gross loans | $ 7,309 | $ 5,822 | $ 7,309 | $ 5,822 | $ 4,112 | ||
Total allowance to gross loans | 1.16% | 0.41% | |||||
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) | 8 months | ||||||
Period considered for comparison of allowance for loan losses factor (in years) | 1 year | ||||||
Period considered for comparison of entity's allowance for loan losses factor (in years) | 1 year 4 months 24 days | ||||||
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 | 6 Months Ended | ||
Aug. 31, 2014 | Mar. 31, 2004 | Jun. 30, 2017 | Apr. 01, 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 | |||
Effective rate (as a percent) | 3.91% | |||
Subordinated Debentures | Mission Community Capital Trust I | ||||
Subordinated Debentures | ||||
Effective rate (as a percent) | 4.11% | |||
Floating rate junior subordinated debt | $ 2,800,000 | $ 3,100,000 | ||
Purchase accounting fair value adjustments | $ 300,000 | |||
Subordinated Debentures | Santa Lucia Bancorp (CA) Capital Trust | ||||
Subordinated Debentures | ||||
Effective rate (as a percent) | 2.64% | |||
Floating rate junior subordinated debt | $ 3,700,000 | 5,200,000 | ||
Purchase accounting fair value adjustments | $ 1,500,000 | |||
Subordinated Debentures | Heritage Oaks Bancorp | ||||
Subordinated Debentures | ||||
Effective rate (as a percent) | 2.87% | |||
Floating rate junior subordinated debt | $ 3,900,000 | $ 5,200,000 | ||
Purchase accounting fair value adjustments | $ 1,400,000 | |||
Subordinated Debentures | LIBOR | ||||
Subordinated Debentures | ||||
Floating interest rate, basis points added to base rate (as a percent) | 2.75% | |||
Subordinated Debentures | LIBOR | Mission Community Capital Trust I | ||||
Subordinated Debentures | ||||
Floating interest rate, basis points added to base rate (as a percent) | 2.95% | |||
Subordinated Debentures | LIBOR | Santa Lucia Bancorp (CA) Capital Trust | ||||
Subordinated Debentures | ||||
Floating interest rate, basis points added to base rate (as a percent) | 1.48% | |||
Subordinated Debentures | LIBOR | Heritage Oaks Bancorp | ||||
Subordinated Debentures | ||||
Floating interest rate, basis points added to base rate (as a percent) | 1.72% | |||
Subordinated Debentures | PPBI Trust I | ||||
Subordinated Debentures | ||||
Debt issued | $ 10,300,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||||
Stock options excluded (in shares) | 15,531 | 0 | 154,251 | 7,389 | 131,703 |
Net Income | |||||
Basic income available to common stockholders | $ 14,176 | $ 9,521 | $ 10,369 | $ 23,697 | $ 18,923 |
Diluted income available to common stockholders plus assumed conversions | $ 14,176 | $ 9,521 | $ 10,369 | $ 23,697 | $ 18,923 |
Shares | |||||
Basic income available to common stockholders (in shares) | 39,586,524 | 27,528,940 | 27,378,930 | 33,591,040 | 26,467,292 |
Effect of dilutive stock options and warrants (in shares) | 680,696 | 668,280 | 466,560 | 676,175 | 434,335 |
Diluted income available to common stockholders plus assumed conversions (in shares) | 40,267,220 | 28,197,220 | 27,845,490 | 34,267,215 | 26,901,627 |
Per Share Amount | |||||
Basic income available to common stockholders (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.38 | $ 0.71 | $ 0.72 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $ 0.35 | $ 0.34 | $ 0.37 | $ 0.69 | $ 0.70 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments - Fair Value Estimates (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Investments held-to-maturity | $ 7,703 | $ 8,461 |
Investment securities available-for-sale, at fair value | 703,083 | 380,963 |
Accrued interest receivable | 20,607 | 13,145 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 229,281 | 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 | 20,607 | 13,145 |
Liabilities: | ||
Deposit accounts | 3,745,568 | 2,330,579 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 443 | 263 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investments held-to-maturity | 7,703 | 8,461 |
Investment securities available-for-sale, at fair value | 703,083 | 380,963 |
Loans held for sale, net | 7,665 | 8,405 |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposit accounts | 801,765 | 573,467 |
FHLB advances | 346,985 | 277,935 |
Other borrowings | 51,742 | 50,905 |
Subordinated debentures | 81,280 | 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 | 4,843,801 | 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 | 229,281 | 156,857 |
Investments held-to-maturity | 7,750 | 8,565 |
Investment securities available-for-sale, at fair value | 703,083 | 380,963 |
Federal Reserve Bank and FHLB stock, at cost | 56,612 | 37,304 |
Loans held for sale, net | 6,840 | 7,711 |
Loans held for investment, net | 4,858,611 | 3,220,317 |
Accrued interest receivable | 20,607 | 13,145 |
Liabilities: | ||
Deposit accounts | 4,946,431 | 3,145,581 |
FHLB advances | 346,202 | 278,000 |
Other borrowings | 51,065 | 49,971 |
Subordinated debentures | 79,800 | 69,383 |
Accrued interest payable | 443 | 263 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 229,281 | 156,857 |
Investments held-to-maturity | 7,703 | 8,461 |
Investment securities available-for-sale, at fair value | 703,083 | 380,963 |
Loans held for sale, net | 7,665 | 8,405 |
Loans held for investment, net | 4,843,801 | 3,211,154 |
Accrued interest receivable | 20,607 | 13,145 |
Liabilities: | ||
Deposit accounts | 4,547,333 | 2,904,046 |
FHLB advances | 346,985 | 277,935 |
Other borrowings | 51,742 | 50,905 |
Subordinated debentures | 81,280 | 69,982 |
Accrued interest payable | 443 | 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 Instr53
Fair Value of Financial Instruments - Hierarchy Table - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Total | ||
Investment securities available-for-sale, at fair value | $ 703,083 | $ 380,963 |
Agency | ||
Total | ||
Investment securities available-for-sale, at fair value | 55,071 | |
Corporate | ||
Total | ||
Investment securities available-for-sale, at fair value | 54,349 | 37,642 |
Municipal bonds | ||
Total | ||
Investment securities available-for-sale, at fair value | 252,078 | 118,803 |
Collateralized mortgage obligation: residential | ||
Total | ||
Investment securities available-for-sale, at fair value | 46,321 | 31,388 |
Mortgage-backed securities | ||
Total | ||
Investment securities available-for-sale, at fair value | 295,264 | 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 | 703,083 | 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 | 703,083 | 380,963 |
Recurring basis | Agency | ||
Total | ||
Investment securities available-for-sale, at fair value | 55,071 | |
Recurring basis | Corporate | ||
Total | ||
Investment securities available-for-sale, at fair value | 54,349 | 37,642 |
Recurring basis | Municipal bonds | ||
Total | ||
Investment securities available-for-sale, at fair value | 252,078 | 118,803 |
Recurring basis | Collateralized mortgage obligation: residential | ||
Total | ||
Investment securities available-for-sale, at fair value | 46,321 | 31,388 |
Recurring basis | Mortgage-backed securities | ||
Total | ||
Investment securities available-for-sale, at fair value | 295,264 | 193,130 |
Recurring basis | Level 1 | ||
Total | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Agency | ||
Total | ||
Investment securities available-for-sale, at fair value | 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 | 703,083 | 380,963 |
Recurring basis | Level 2 | Agency | ||
Total | ||
Investment securities available-for-sale, at fair value | 55,071 | |
Recurring basis | Level 2 | Corporate | ||
Total | ||
Investment securities available-for-sale, at fair value | 54,349 | 37,642 |
Recurring basis | Level 2 | Municipal bonds | ||
Total | ||
Investment securities available-for-sale, at fair value | 252,078 | 118,803 |
Recurring basis | Level 2 | Collateralized mortgage obligation: residential | ||
Total | ||
Investment securities available-for-sale, at fair value | 46,321 | 31,388 |
Recurring basis | Level 2 | Mortgage-backed securities | ||
Total | ||
Investment securities available-for-sale, at fair value | 295,264 | 193,130 |
Recurring basis | Level 3 | ||
Total | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Agency | ||
Total | ||
Investment securities available-for-sale, at fair value | 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 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Derivative [Line Items] | |
Net Amounts Presented in the Consolidated Balance Sheets | $ 1,177 |
Net Amounts Presented in the Consolidated Balance Sheets | 1,177 |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Notional | 41,259 |
Net Amounts Presented in the Consolidated Balance Sheets | 1,177 |
Net Amounts Presented in the Consolidated Balance Sheets | 1,177 |
Not Designated as Hedging Instrument | Interest rate swap contracts | |
Derivative [Line Items] | |
Notional | 41,259 |
Net Amounts Presented in the Consolidated Balance Sheets | $ 1,177 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Financial assets: | |
Gross Amounts Recognized in the Consolidated Balance Sheets | $ 1,742 |
Gross Amounts Offset in the Consolidated Balance Sheets | (565) |
Net Amounts Presented in the Consolidated Balance Sheets | 1,177 |
Financial Instruments | 0 |
Cash Collateral | 2,100 |
Net Amount | 3,277 |
Financial liabilities: | |
Gross Amounts Recognized in the Consolidated Balance Sheets | 1,177 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 1,177 |
Financial Instruments | 0 |
Cash Collateral | 0 |
Net Amount | 1,177 |
Not Designated as Hedging Instrument | |
Financial assets: | |
Gross Amounts Recognized in the Consolidated Balance Sheets | 1,742 |
Gross Amounts Offset in the Consolidated Balance Sheets | (565) |
Net Amounts Presented in the Consolidated Balance Sheets | 1,177 |
Financial Instruments | 0 |
Cash Collateral | 2,100 |
Net Amount | 3,277 |
Financial liabilities: | |
Net Amounts Presented in the Consolidated Balance Sheets | $ 1,177 |