Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 06, 2018 | |
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 | Sep. 30, 2018 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 62,472,897 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 39,485 | $ 39,606 |
Interest-bearing deposits with financial institutions | 223,727 | 157,558 |
Cash and cash equivalents | 263,212 | 197,164 |
Interest-bearing time deposits with financial institutions | 6,386 | 6,633 |
Investments held-to-maturity, at amortized cost (fair value of $45,138 as of September 30, 2018 and $18,082 as of December 31, 2017, respectively) | 46,385 | 18,291 |
Investment securities available-for-sale, at fair value | 1,054,877 | 787,429 |
FHLB, FRB and other stock, at cost | 112,649 | 65,881 |
Loans held for sale, at lower of cost or fair value | 52,880 | 23,426 |
Loans held for investment | 8,759,204 | 6,196,224 |
Allowance for loan losses | (33,306) | (28,936) |
Loans held for investment, net | 8,725,898 | 6,167,288 |
Accrued interest receivable | 37,683 | 27,060 |
Other real estate owned | 356 | 326 |
Premises and equipment | 66,103 | 53,155 |
Deferred income taxes, net | 26,848 | 13,265 |
Bank owned life insurance | 110,354 | 75,976 |
Intangible assets | 105,187 | 43,014 |
Goodwill | 807,892 | 493,329 |
Other assets | 87,171 | 52,264 |
Total assets | 11,503,881 | 8,024,501 |
Deposit accounts: | ||
Noninterest-bearing checking | 3,434,674 | 2,226,876 |
Interest-bearing: | ||
Checking | 495,483 | 365,193 |
Money market/savings | 3,261,544 | 2,409,007 |
Retail certificates of deposit | 1,045,334 | 714,751 |
Wholesale/brokered certificates of deposit | 265,110 | 370,059 |
Total interest-bearing | 5,067,471 | 3,859,010 |
Total deposits | 8,502,145 | 6,085,886 |
FHLB advances and other borrowings | 861,972 | 536,287 |
Subordinated debentures | 110,244 | 105,123 |
Accrued expenses and other liabilities | 113,143 | 55,209 |
Total liabilities | 9,587,504 | 6,782,505 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $.01 par value; 1,000,000 authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 150,000,000 shares authorized; 62,472,721 shares at September 30, 2018 and 46,245,050 shares at December 31, 2017 issued and outstanding | 617 | 458 |
Additional paid-in capital | 1,671,673 | 1,063,974 |
Retained earnings | 260,764 | 177,149 |
Accumulated other comprehensive (loss) income | (16,677) | 415 |
Total stockholders' equity | 1,916,377 | 1,241,996 |
Total liabilities and stockholders' equity | $ 11,503,881 | $ 8,024,501 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Investments held-to-maturity, fair value | $ 45,138 | $ 18,082 |
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) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 62,472,721 | 46,245,050 |
Common stock, shares outstanding (in shares) | 62,472,721 | 46,245,050 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
INTEREST INCOME | |||||
Loans | $ 119,271 | $ 85,625 | $ 64,915 | $ 289,069 | $ 170,905 |
Investment securities and other interest-earning assets | 9,605 | 7,074 | 5,246 | 23,333 | 13,416 |
Total interest income | 128,876 | 92,699 | 70,161 | 312,402 | 184,321 |
INTEREST EXPENSE | |||||
Deposits | 11,942 | 7,756 | 3,557 | 25,612 | 8,774 |
FHLB advances and other borrowings | 2,494 | 2,125 | 1,162 | 6,642 | 2,940 |
Subordinated debentures | 1,727 | 1,647 | 1,151 | 4,983 | 3,275 |
Total interest expense | 16,163 | 11,528 | 5,870 | 37,237 | 14,989 |
Net interest income before provision for credit losses | 112,713 | 81,171 | 64,291 | 275,165 | 169,332 |
Provision for credit losses | 1,981 | 1,761 | 2,049 | 5,995 | 6,238 |
Net interest income after provision for credit losses | 110,732 | 79,410 | 62,242 | 269,170 | 163,094 |
NONINTEREST INCOME | |||||
Loan servicing fees | 400 | 292 | 276 | 1,037 | 641 |
Earnings on bank-owned life insurance | 1,270 | 617 | 629 | 2,498 | 1,654 |
Net gain from sales of loans | 2,029 | 3,843 | 3,439 | 8,830 | 9,137 |
Net gain from sales of investment securities | 1,063 | 330 | 896 | 1,399 | 2,989 |
Other income | 530 | 753 | 936 | 2,697 | 2,370 |
Total noninterest income | 7,544 | 8,151 | 8,221 | 23,361 | 21,663 |
NONINTEREST EXPENSE | |||||
Compensation and benefits | 37,901 | 29,274 | 21,707 | 96,048 | 58,218 |
Premises and occupancy | 7,214 | 5,045 | 4,016 | 17,040 | 10,202 |
Data processing | 4,095 | 2,747 | 2,082 | 9,544 | 5,708 |
Other real estate owned operations, net | 0 | 2 | 3 | 3 | 59 |
FDIC insurance premiums | 1,060 | 581 | 379 | 2,252 | 1,652 |
Legal, audit and professional expense | 3,280 | 1,816 | 1,978 | 6,935 | 4,177 |
Marketing expense | 1,569 | 1,352 | 1,248 | 4,451 | 3,072 |
Office, telecommunications and postage expense | 1,538 | 1,115 | 835 | 3,733 | 2,190 |
Loan expense | 1,139 | 594 | 1,017 | 2,324 | 2,553 |
Deposit expense | 2,137 | 2,302 | 1,655 | 6,115 | 4,762 |
Merger-related expense | 13,978 | 943 | 503 | 15,857 | 15,566 |
CDI amortization | 4,693 | 1,996 | 1,761 | 8,963 | 4,033 |
Other expense | 3,482 | 2,309 | 2,428 | 8,705 | 5,880 |
Total noninterest expense | 82,086 | 50,076 | 39,612 | 181,970 | 118,072 |
Net income before income taxes | 36,190 | 37,485 | 30,851 | 110,561 | 66,685 |
Income tax | 7,798 | 10,182 | 10,619 | 26,864 | 22,756 |
Net income | $ 28,392 | $ 27,303 | $ 20,232 | $ 83,697 | $ 43,929 |
EARNINGS PER SHARE | |||||
Basic (in dollars per share) | $ 0.46 | $ 0.59 | $ 0.51 | $ 1.63 | $ 1.23 |
Diluted (in dollars per share) | $ 0.46 | $ 0.58 | $ 0.50 | $ 1.61 | $ 1.20 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||
Basic (in shares) | 61,727,030 | 46,053,077 | 39,709,565 | 51,282,533 | 35,652,626 |
Diluted (in shares) | 62,361,804 | 46,702,968 | 40,486,114 | 51,965,647 | 36,455,945 |
Service charges on deposit accounts | |||||
NONINTEREST INCOME | |||||
Noninterest income | $ 874 | $ 1,057 | $ 946 | $ 3,081 | $ 2,153 |
Other service fee income | |||||
NONINTEREST INCOME | |||||
Noninterest income | 317 | 169 | 851 | 632 | 1,725 |
Debit card interchange fee income | |||||
NONINTEREST INCOME | |||||
Noninterest income | $ 1,061 | $ 1,090 | $ 248 | $ 3,187 | $ 994 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 28,392 | $ 27,303 | $ 20,232 | $ 83,697 | $ 43,929 | |
Other comprehensive income, net of tax: | ||||||
Unrealized holding (loss)/gain on securities arising during the period, net of income taxes | [1] | (3,630) | (3,122) | (196) | (16,095) | 7,153 |
Reclassification adjustment for net (gains) losses on sale of securities included in net income, net of income taxes | [2] | (834) | (240) | (588) | (1,079) | (1,956) |
Other comprehensive (loss) income, net of tax | (4,464) | (3,362) | (784) | (17,174) | 5,197 | |
Comprehensive income, net of tax | $ 23,928 | $ 23,941 | $ 19,448 | $ 66,523 | $ 49,126 | |
[1] | Income tax (benefit) expense on the unrealized (loss)/gain on securities was $(1.6) million for the three months ended September 30, 2018, $(1.3) million for the three months ended June 30, 2018, $(253,000) for the three months ended September 30, 2017, $(6.8) million for the nine months ended September 30, 2018 and $4.7 million for the nine months ended September 30, 2017. | |||||
[2] | Income tax (benefit) expense on the reclassification adjustment for net (gains) losses on sale of securities included in net income was $229,000 for the three months ended September 30, 2018, $90,000 for the three months ended June 30, 2018, $308,000 for the three months ended September 30, 2017, $320,000 for the nine months ended September 30, 2018 and $1.0 million for the nine months ended September 30, 2017. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||
Unrealized holding (loss)/gain on securities arising during the period, income tax expense (benefit) | $ (1,600) | $ (1,300) | $ (253) | $ (6,800) | $ 4,700 |
Reclassification adjustment for net (gains) losses on sale of securities included in net income, income tax expense (benefit) | $ 229 | $ 90 | $ 308 | $ 320 | $ 1,000 |
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 (Loss) Income |
Balance at Dec. 31, 2016 | $ 459,740 | $ 274 | $ 345,138 | $ 117,049 | $ (2,721) |
Balance (in shares) at Dec. 31, 2016 | 27,798,283 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 43,929 | 43,929 | |||
Other comprehensive income | 5,197 | 5,197 | |||
Share-based compensation expense | 4,246 | 4,246 | |||
Issuance of restricted stock, net (in shares) | 149,197 | ||||
Common stock issued | 464,982 | $ 120 | 464,862 | ||
Common stock issued (in shares) | 11,904,901 | ||||
Restricted stock surrendered and canceled | (1,259) | (1,259) | |||
Restricted stock surrendered and canceled (in shares) | (21,506) | ||||
Exercise of stock options | 4,325 | $ 3 | 4,322 | ||
Exercise of stock options (in shares) | 331,151 | ||||
Balance at Sep. 30, 2017 | 981,160 | $ 397 | 817,309 | 160,978 | 2,476 |
Balance (in shares) at Sep. 30, 2017 | 40,162,026 | ||||
Balance at Dec. 31, 2017 | $ 1,241,996 | $ 458 | 1,063,974 | 177,149 | 415 |
Balance (in shares) at Dec. 31, 2017 | 46,245,050 | 46,245,050 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 83,697 | 83,697 | |||
Other comprehensive income | (17,174) | (17,174) | |||
Share-based compensation expense | 6,362 | 6,362 | |||
Issuance of restricted stock, net | 0 | 0 | |||
Issuance of restricted stock, net (in shares) | 264,420 | ||||
Common stock issued | 601,171 | $ 158 | 601,013 | ||
Common stock issued (in shares) | 15,758,039 | ||||
Restricted stock surrendered and canceled | (1,586) | (1,586) | |||
Restricted stock surrendered and canceled (in shares) | (28,849) | ||||
Exercise of stock options | 1,911 | $ 1 | 1,910 | ||
Exercise of stock options (in shares) | 234,061 | ||||
Reclassification of certain tax effects of the Tax Cuts and Jobs Act | 0 | (82) | 82 | ||
Balance at Sep. 30, 2018 | $ 1,916,377 | $ 617 | $ 1,671,673 | $ 260,764 | $ (16,677) |
Balance (in shares) at Sep. 30, 2018 | 62,472,721 | 62,472,721 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 83,697 | $ 43,929 |
Adjustments to net income: | ||
Depreciation and amortization expense | 5,487 | 3,378 |
Provision for credit losses | 5,995 | 6,238 |
Share-based compensation expense | 6,362 | 4,246 |
Loss on sale and disposal of premises and equipment | 52 | 235 |
Loss (gain) on sale of or write down of other real estate owned | 21 | (94) |
Net amortization on securities | 5,326 | 5,693 |
Net accretion of deferred loan fees/costs and discounts/premiums for loans acquired | 3,936 | 1,373 |
Gain on sale of investment securities available-for-sale | (1,399) | (2,989) |
Originations of loans held for sale | (108,071) | (130,040) |
Proceeds from the sales of and principal payments from loans held for sale | 126,329 | 100,938 |
Gain on sale of loans | (8,830) | (9,137) |
Deferred income tax expense | 26,864 | 1,651 |
Change in accrued expenses and other liabilities, net | 20,004 | 10,147 |
Income from bank owned life insurance, net | (2,038) | (1,349) |
Amortization of core deposit intangible | 8,963 | 4,033 |
Change in accrued interest receivable and other assets, net | (20,511) | 1,664 |
Net cash provided by operating activities | 152,187 | 39,916 |
Cash flows from investing activities: | ||
Net decrease (increase) in interest-bearing time deposits with financial institutions | 247 | (493) |
Proceeds from sale of other real estate owned | 496 | 182 |
Increase in loans, net | (196,416) | (391,186) |
Purchase of loans held for investment | (61,562) | (13,582) |
Purchase of held-to-maturity securities | (29,002) | (10,924) |
Principal payments on held-to-maturity securities | 839 | 849 |
Purchase of securities available-for-sale | (390,459) | (157,773) |
Principal payments on securities available-for-sale | (103,179) | (54,624) |
Proceeds from sale or maturity of securities available-for-sale | 394,536 | 248,043 |
Proceeds from bank owned life insurance death benefit | 0 | 199 |
Purchases of premises and equipment | (9,365) | (2,421) |
Change in FHLB, FRB, and other stock, at cost | (30,586) | (11,301) |
Change in cash acquired in acquisitions, net | 146,571 | 76,531 |
Net cash used in investing activities | (71,522) | (207,252) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposit accounts | (90,653) | 203,119 |
Net change in short-term borrowings | 86,211 | (74,344) |
Repayment of long-term FHLB borrowings | (10,500) | 0 |
Proceeds from exercise of stock options and warrants | 1,911 | 4,325 |
Restricted stock surrendered and canceled | (1,586) | (1,259) |
Net cash (used in) provided by financing activities | (14,617) | 131,841 |
Net (decrease) increase in cash and cash equivalents | 66,048 | (35,495) |
Cash and cash equivalents, beginning of period | 197,164 | 156,857 |
Cash and cash equivalents, end of period | 263,212 | 121,362 |
Supplemental cash flow disclosures: | ||
Interest paid | 33,290 | 12,696 |
Income taxes paid | 27,806 | 1,405 |
Noncash investing activities during the period: | ||
Transfers from loans to other real estate owned | 15 | 0 |
Security settled (purchases) in subsequent period | (9,988) | 18,755 |
Transfers from portfolio loans to loans held for sale | 662 | 31,685 |
Assets acquired (liabilities assumed and capital created) in acquisitions (See Note 4): | ||
Investment securities | 392,858 | 442,923 |
FHLB and other stock | 16,768 | 9,739 |
Loans | 2,352,388 | 1,364,688 |
Core deposit intangible | 71,943 | 28,123 |
Deferred income tax | 4,536 | 11,623 |
Goodwill | 312,239 | 268,075 |
Fixed assets | 9,122 | 34,902 |
Other assets | 80,478 | 45,475 |
Deposits | (2,506,929) | (1,669,550) |
Other borrowings | (254,923) | (139,034) |
Other liabilities | (24,859) | (8,352) |
Common stock and additional paid-in capital | $ (601,172) | $ (464,982) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 , the results of its operations and comprehensive income for the three months ended September 30, 2018 , June 30, 2018 and September 30, 2017 and the nine months ended September 30, 2018 and 2017 and the changes in stockholders’ equity and cash flows for the nine months ended September 30, 2018 and 2017 . Operating results or comprehensive income for the nine months ended September 30, 2018 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, 2018 . 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, 2017 (the “ 2017 Annual Report”). The Company accounts for its investments in its wholly owned special purpose entities, PPBI Trust I, Heritage Oaks Capital Trust II, Mission Community Capital Trust I, Santa Lucia Bancorp (CA) Capital Trust and First Commerce Bancorp Trust I, under the equity method whereby the subsidiary’s net earnings are recognized in the Company’s statement of income. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Standards Adopted in 2018 In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU" or "Update") 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law, which among other things reduced the maximum federal corporate tax rate from 35% to 21%. This Update addresses concerns about the guidance in current U.S. GAAP that requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance is applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income ("AOCI") were originally recognized in other comprehensive income (rather than in income from continuing operations). As a result of the adjustment of deferred taxes being required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (referred to as stranded tax effects for purposes of this Update) did not reflect the appropriate tax rate. This Update allows for an election to reclassify between retained earnings and AOCI the impact of the federal income tax rate change. The amendments in this Update are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption of the amendments of this Update is permitted. The Company elected to early adopt in the first quarter of 2018. Accordingly, the Company recorded an increase to AOCI and a decrease to retain earnings of approximately $82,000 for stranded tax effects on available for sale investment securities in the first quarter of 2018. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . Under the current implementation guidance in Topic 805, there are three elements of a business-inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. The amendments in this Update provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the Company has developed more stringent criteria for sets without outputs. Lastly, the amendments in this Update narrow the definition of the term output so that the term is consistent with how outputs are described in Topic 606. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. The adoption of this standard did not have a material effect on the Company's operating results or financial condition. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This Update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of this standard did not have a material effect on the Company's operating results or financial condition. In August 2016, the FASB issued ASU 2016-15, Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This Update provides guidance on eight specific cash flow classification issues, which include: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or debt with coupon interest rates that are insignificant in relation to the effective interest rate; 3) contingent consideration payments made soon after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investments; 7) beneficial interest in securitization transactions; and 8) separately identifiable cash flows and the application of the predominance principle. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period; however, an entity is required to adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The adoption of this standard did not have a material effect on the Company's operating results or financial condition. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, ASU 2018-04, Investments-Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No.33-9273 (SEC Update), ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Changes made to the current measurement model primarily affect the accounting for equity securities with readily determinable fair values, where changes in fair value are included in earnings instead of other comprehensive income. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. This Update also changes the presentation and disclosure requirements for financial instruments including a requirement that public business entities use exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. This Update is effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 did not have a material effect on the Company's operating results or financial condition. In accordance with the guidance, the Company measures the fair value of financial instruments reported at amortized cost on the statement of financial condition using the exit price notion. For further details, refer to Note 10 - Fair Value of Financial instruments. 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. The Company adopted the provisions of ASU 2014-09 and its related amendments effective January 1, 2018 utilizing the modified retrospective transition method and determined the adoption was insignificant to the financial statements. Since the impact upon adoption of ASU 2014-09 and its related amendments was insignificant to the financial statements, a cumulative effect adjustment to retained earnings was not deemed necessary. The Company's review of its various revenue streams indicated that approximately 99% of the Company’s revenue is out of the scope of ASU 2014-09 and its related amendments, including all of the Company’s net interest income and a significant portion of non-interest income. For those revenue streams that are within the scope of ASU 2014-09 and its related amendments, the Company reviewed the associated customer contracts and agreements to determine the appropriate accounting for revenues under those contracts. The Company’s review did not identify any significant changes in the timing of revenue recognition under those contracts within the scope of ASU 2014-09 and its related amendments. Significant revenue streams that are within scope primarily relate to service charges and fees associated customer deposit accounts, as well as fees for various other services the Company provides its customers. As a result of the implementation of ASU 2014-09 and its related amendments, the Company will conduct a detailed review of its revenue streams at least annually, or more frequently if deemed necessary. Recent Accounting Guidance Not Yet Effective In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . The following disclosure requirements for public companies were removed from Topic 820: • The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy • The policy for timing of transfers between levels • The valuation processes for Level 3 fair value measurements The following disclosure requirements for public companies were modified in Topic 820: • The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date The following disclosure requirements for public companies were added to Topic 820: • The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period • The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. In addition, an entity may early adopt any of the removed or modified disclosures immediately and delay adoption of the new disclosures until the effective date. The Company is currently evaluating the effects of ASU 2018-13 on its financial statements and disclosures. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchase Callable Debt Securities . This Update amends guidance on the amortization period of premiums on certain purchased callable debt securities. The amendments shorten the amortization period of premiums on purchased callable debt securities to the earliest call date. This Update should be applied on a modified retrospective basis through a cumulative-effect adjustment to beginning retained earnings. The effective date of ASU 2017-08 is for interim and annual reporting periods beginning after December 15, 2018. The adoption of this standard is not expected to have a material effect on the Company's operating results or financial condition. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This Update replaces the incurred loss impairment model in current U.S. GAAP with a model that reflects current expected credit losses (“CECL”). The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures. The Update requires that all expected credit losses for financial assets held at the reporting date be measured based on historical experience, current conditions and reasonable and supportable forecasts. The Update also requires enhanced disclosure, including qualitative and quantitative disclosures that provide additional information about significant estimates and judgments used in estimating credit losses. For public business entities, the Update is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures. The Company has formed a committee made up of members of finance, credit and risk management that are in the process of compiling and analyzing key data elements and implementing a software model that will meet the requirements of the new guidance. The magnitude of the adjustment and the overall impact of the new guidance on the consolidated financial statements cannot yet be reasonably estimated. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), ASU 2018-11, Leases (Topic 842): Targeted Improvements, ASU 2018-10, Codification Improvements to Topic 842, Leases. This Update is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be recorded in the consolidated statements of financial condition, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The Update provides an optional transition method where only the most recent period presented will reflect the adoption with a cumulative-effect adjustment to the opening balance of retained earnings, and the comparative prior periods will be reported under the previous guidance in Topic 840. 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 currently in the process of finalizing its identification and evaluation of lease obligations and service agreements under the provisions of the new standard. This evaluation includes an assessment of the appropriate classification and related accounting of each lease agreement under the new standard, a review of applicability of the new standard to existing service agreements and gathering all essential lease data that will facilitate the application of the new standard. Upon adoption of the new standard articulated in this Update, the Company will record a liability representing an obligation to make future lease payments and will also record an asset representing rights to use the underlying leased assets. As of September 30, 2018, the Company believes these assets and liabilities to be recognized under the new standard will amount to less than 1% of the Company's total assets. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies 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, 2017 as filed with the Securities and Exchange Commission ("Form 10-K"). Select policies have been reiterated below that have a particular affiliation to our interim financial statements. Revenue Recognition –The Company accounts for certain of its revenue streams in accordance with ASC 606 - Revenue from Contracts with Customers . Revenue streams within the scope of and accounted for under ASC 606 include: service charges and fees on deposit accounts, debit card interchange fees, fees from other services the Bank provides its customers and gains and losses from the sale of other real estate owned and property, premises and equipment. ASC 606 requires revenue to be recognized when the Company satisfies related performance obligations by transferring to the customer a good or service. The recognition of revenue under ASC 606 requires the Company to first identify the contract with the customer, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and finally recognize revenue when the performance obligations have been satisfied and the good or service has been transferred. The majority of the Company’s contracts with customers associated with revenue streams that are within the scope of ASC 606 are considered short-term in nature and can be canceled at any time by the customer or the Bank, such as a deposit account agreement. Other more significant revenue streams for the Company such as interest income on loans and investment securities are specifically excluded from the scope of ASC 606 and are accounted for under other applicable U.S. GAAP. 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 the fourth quarter as the period 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 U.S. GAAP 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 | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Grandpoint Capital, Inc. Acquisition Effective as of July 1, 2018, the Company completed the acquisition of Grandpoint Capital, Inc. (“Grandpoint”), the holding company of Grandpoint Bank, a California-chartered bank, with $3.1 billion in total assets, $2.4 billion in gross loans and $2.5 billion in total deposits at June 30, 2018. Pursuant to the terms of the merger agreement, each outstanding share of Grandpoint voting common stock and Grandoint non-voting common stock was converted into the right to receive 0.4750 shares of the Corporation's common stock. The value of the total transaction consideration was approximately $629 million , which included approximately $28.1 million in aggregate cash consideration payable to holders of Grandpoint share-based compensation awards and the issuance of 15,758,039 shares of the Corporation's common stock, valued at $38.15 per share, which was the closing price of the Corporation's common stock on June 29, 2018, the last trading day prior to the consummation of the Merger. Goodwill in the amount of $312 million was recognized in the Grandpoint 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 Grandpoint as of July 1, 2018 and the fair value adjustments and amounts recorded by the Company in 2018 under the acquisition method of accounting, which are subject to adjustment for up to one year after the merger date: Grandpoint Book Value Fair Value Adjustments Fair Value ASSETS ACQUIRED (dollars in thousands) Cash and cash equivalents $ 147,551 $ — $ 147,551 Investment securities 395,905 (3,047 ) 392,858 Loans, gross 2,404,042 (51,654 ) 2,352,388 Allowance for loan losses (18,665 ) 18,665 — Fixed assets 6,015 3,107 9,122 Core deposit intangible 5,093 66,850 71,943 Deferred tax assets 14,185 (9,649 ) 4,536 Other assets 97,441 (195 ) 97,246 Total assets acquired $ 3,051,567 $ 24,077 $ 3,075,644 LIABILITIES ASSUMED Deposits $ 2,506,663 $ 266 $ 2,506,929 Borrowings 255,155 (232 ) 254,923 Other liabilities 23,687 1,172 24,859 Total liabilities assumed 2,785,505 1,206 2,786,711 Excess of assets acquired over liabilities assumed $ 266,062 $ 22,871 288,933 Consideration paid 601,172 Goodwill recognized $ 312,239 Plaza Bancorp Acquisition Effective as of November 1, 2017, the Company completed the acquisition of Plaza Bancorp (“Plaza”), the holding company of Plaza Bank, a California-chartered bank with $1.3 billion in total assets, $1.1 billion in gross loans and $1.1 billion in total deposits at October 31, 2017. Pursuant to the terms of the merger agreement, each outstanding share of Plaza common stock was converted into the right to receive 0.2000 shares of the Corporation's common stock. The value of the total deal consideration was approximately $246 million , which included approximately $6.5 million of aggregate cash consideration payable to holders of unexercised options and warrants exercisable for shares of Plaza common stock, and the issuance of 6,049,373 shares of the Corporation's common stock, which had a value of $40.40 per share, which was the closing price of the Corporation's common stock on October 31, 2017, the last trading day prior to the consummation of the acquisition. Goodwill in the amount of $123 million was recognized in the Plaza 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 Plaza as of November 1, 2017 and the fair value adjustments and amounts recorded by the Company in 2017 under the acquisition method of accounting: Plaza Fair Value Adjustments Fair Value ASSETS ACQUIRED (dollars in thousands) Cash and cash equivalents $ 150,459 $ — $ 150,459 Loans, gross 1,069,359 (6,458 ) 1,062,901 Allowance for loan losses (13,009 ) 13,009 — Fixed assets 7,389 (194 ) 7,195 Core deposit intangible 198 10,575 10,773 Deferred tax assets 11,849 (6,343 ) 5,506 Other assets 19,495 (589 ) 18,906 Total assets acquired $ 1,245,740 $ 10,000 $ 1,255,740 LIABILITIES ASSUMED Deposits $ 1,081,727 $ 1,224 $ 1,082,951 Borrowings 40,755 397 41,152 Other liabilities 8,956 (451 ) 8,505 Total liabilities assumed 1,131,438 1,170 1,132,608 Excess of assets acquired over liabilities assumed $ 114,302 $ 8,830 123,132 Consideration paid 245,761 Goodwill recognized $ 122,629 The fair values are estimates and are subject to adjustment for up to one year after the merger date. Since the acquisition, the Company has made net adjustments of $1.3 million related to core deposit intangibles, deferred tax assets, loans and other assets and liabilities. Heritage Oaks Bancorp Acquisition Effective as of April 1, 2017, the Company completed the acquisition of Heritage Oaks Bancorp ("HEOP"), the holding company of Heritage Oaks Bank, a California-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. 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 the Corporation's common stock. The value of the total deal consideration was approximately $467 million , which included approximately $3.9 million of aggregate cash consideration payable to holders of HEOP 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 $270 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 445,299 (2,376 ) 442,923 Loans, gross 1,384,949 (20,261 ) 1,364,688 Allowance for loan losses (17,200 ) 17,200 — Fixed assets 35,567 (665 ) 34,902 Core deposit intangible 3,207 24,916 28,123 Deferred tax assets 17,850 (7,606 ) 10,244 Other assets 55,235 (21 ) 55,214 Total assets acquired $ 2,003,635 $ 11,187 $ 2,014,822 LIABILITIES ASSUMED Deposits $ 1,668,085 $ 1,465 $ 1,669,550 Borrowings 139,150 (116 ) 139,034 Other Liabilities 8,059 293 8,352 Total liabilities assumed 1,815,294 1,642 1,816,936 Excess of assets acquired over liabilities assumed $ 188,341 $ 9,545 197,886 Consideration paid 467,439 Goodwill recognized $ 269,553 The fair values are estimates and are subject to adjustment for up to one year after the merger date. In the third quarter of 2017, the Company made a $1.1 million adjustment to deferred tax assets and the deal consideration. During the quarter ended June 30, 2018, the Company finalized its fair values with this acquisition. The Company accounted for these transactions under the acquisition method of accounting in accordance with ASC 805, Business Combinations , which requires purchased assets and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The loan portfolios of Grandpoint, Plaza and HEOP were recorded at fair value at the date of each acquisition. A valuation of Grandpoint's, Plaza's and HEOP's loan portfolios was performed by a third party as of the acquisition dates to assess the fair value of the loan portfolio. The loan portfolios were both segmented into two groups; loan with credit deterioration and loans without credit deterioration, and then split further by loan type. The fair value was calculated on an individual loan basis using a discounted cash flow analysis. The discount rate utilized was based on a weighted average cost of capital, considering the cost of equity and cost of debt. Also factored into the fair value estimates were loss rates, recovery periods and prepayment rates based on industry standards. The Company also determined the fair value of the core deposit intangible, securities, real property, leases, deposits and long-term borrowings with the assistance of third-party valuations. The fair value of other real estate owned ("OREO") was based on recent appraisals of the properties less estimated costs to sell. The core deposit intangible on non-maturing deposits was determined by evaluating the underlying characteristics of the deposit relationships, including customer attrition, deposit interest rates, service charge income, overhead expense and costs of alternative funding. Since the fair value of intangible assets are calculated as if they were stand-alone assets, the presumption is that a hypothetical buyer of the intangible asset would be able to take advantage of potential tax benefits resulting from the asset purchase. The value of the benefit is the present value over the period of the tax benefit, using the discount rate applicable to the asset. In determining the fair value of certificates of deposit, a discounted cash flow analysis was used, which involved present valuing the contractual payments over the remaining life of the certificates of deposit at market-based interest rates. For loans acquired from Grandpoint, Plaza and HEOP, the contractual amounts due, expected cash flows to be collected, interest component and fair value as of their respective acquisition dates were as follows: Acquired Loans Grandpoint Plaza HEOP (dollars in thousands) Contractual amounts due $ 3,496,905 $ 1,708,685 $ 1,717,191 Cash flows not expected to be collected 39,230 20,152 4,442 Expected cash flows 3,457,675 1,688,533 1,712,749 Interest component of expected cash flows 1,105,287 625,632 348,061 Fair value of acquired loans $ 2,352,388 $ 1,062,901 $ 1,364,688 In accordance with U.S. GAAP, there was no carryover of the allowance for loan losses that had been previously recorded by Grandpoint, Plaza and HEOP. The operating results of the Company for the three months ended September 30, 2018 , June 30, 2018 and September 30, 2017 and the nine months ended September 30, 2018 and September 30, 2017 include the operating results of Grandpoint, Plaza and HEOP since their acquisition dates. The following table presents the net interest and other income, net income and earnings per share as if the acquisition of Grandpoint, Plaza and HEOP were effective as of January 1, 2017. 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 Nine Months Ended September 30, June 30, September 30, September 30, 2018 2018 2017 2018 2017 (dollars in thousands) Net interest and other income $ 118,276 $ 117,652 $ 118,364 $ 352,546 $ 326,968 Net income 28,392 28,835 32,897 93,922 76,913 Basic earnings per share 0.46 0.47 0.53 1.52 1.25 Diluted earnings per share 0.46 0.46 0.53 1.50 1.24 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities were as follows: September 30, 2018 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: U.S. Treasury $ 59,659 $ 13 $ (329 ) $ 59,343 Agency 113,628 20 (877 ) 112,771 Corporate 102,761 235 (1,402 ) 101,594 Municipal bonds 234,910 584 (4,293 ) 231,201 Collateralized mortgage obligation: residential 25,897 50 (741 ) 25,206 Mortgage-backed securities: residential 541,660 33 (16,931 ) 524,762 Total investment securities available-for-sale 1,078,515 935 (24,573 ) 1,054,877 Investment securities held-to-maturity: Mortgage-backed securities: residential 45,287 22 (1,269 ) 44,040 Other 1,098 — — 1,098 Total investment securities held-to-maturity 46,385 22 (1,269 ) 45,138 Total investment securities $ 1,124,900 $ 957 $ (25,842 ) $ 1,100,015 December 31, 2017 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: Agency $ 47,051 $ 236 $ (78 ) $ 47,209 Corporate 78,155 1,585 (194 ) 79,546 Municipal bonds 228,929 3,942 (743 ) 232,128 Collateralized mortgage obligation: residential 33,984 132 (335 ) 33,781 Mortgage-backed securities: residential 398,664 266 (4,165 ) 394,765 Total investment securities available-for-sale 786,783 6,161 (5,515 ) 787,429 Investment securities held-to-maturity: Mortgage-backed securities: residential 17,153 — (209 ) 16,944 Other 1,138 — — 1,138 Total investment securities held-to-maturity 18,291 — (209 ) 18,082 Total investment securities $ 805,074 $ 6,161 $ (5,724 ) $ 805,511 Unrealized gains and losses on investment securities available-for-sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At September 30, 2018 , the Company had an accumulated other comprehensive loss of $23.6 million , or $16.7 million net of tax, compared to an accumulated other comprehensive income of $646,000 , or $415,000 net of tax, at December 31, 2017 . At September 30, 2018 , mortgage-backed securities ("MBS") with an estimated par value of $21.7 million and a fair value of $22.2 million were pledged as collateral for the Bank’s homeowner’s association (“HOA”) reverse repurchase agreements, which totaled $2.3 million . At December 31, 2017, MBS with an estimated par value of $55.6 million and a fair value of $57.0 million were pledged as collateral for the Bank’s three repurchase agreements, which totaled $28.5 million , and HOA reverse repurchase agreements, which totaled $17.6 million . At September 30, 2018 and December 31, 2017 , there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' 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 losses for the three months ended September 30, 2018 , June 30, 2018 or September 30, 2017 , or the nine months ended September 30, 2018 and 2017. 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. September 30, 2018 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: U.S. Treasury 5 $ 39,925 $ (329 ) — $ — $ — 5 $ 39,925 $ (329 ) Agency 28 90,499 (859 ) 1 1,121 (18 ) 29 91,620 (877 ) Corporate 17 61,221 (1,076 ) 4 8,942 (326 ) 21 70,163 (1,402 ) Municipal bonds 173 150,294 (2,817 ) 42 22,161 (1,476 ) 215 172,455 (4,293 ) Collateralized mortgage obligation: residential 2 3,023 (54 ) 7 16,537 (687 ) 9 19,560 (741 ) Mortgage-backed securities: residential 85 323,466 (7,531 ) 79 195,039 (9,400 ) 164 518,505 (16,931 ) Total investment securities available-for-sale 310 668,428 (12,666 ) 133 243,800 (11,907 ) 443 912,228 (24,573 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 13 33,318 (949 ) 1 5,849 (320 ) 14 39,167 (1,269 ) Total investment securities held-to-maturity 13 33,318 (949 ) 1 5,849 (320 ) 14 39,167 (1,269 ) Total investment securities 323 $ 701,746 $ (13,615 ) 134 $ 249,649 $ (12,227 ) 457 $ 951,395 $ (25,842 ) December 31, 2017 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: Agency 6 $ 13,754 $ (78 ) — $ — $ — 6 $ 13,754 $ (78 ) Corporate 4 10,079 (64 ) 2 6,076 (130 ) 6 16,155 (194 ) Municipal bonds 103 61,313 (268 ) 30 15,658 (475 ) 133 76,971 (743 ) Collateralized mortgage obligation: residential 5 13,971 (149 ) 3 8,943 (186 ) 8 22,914 (335 ) Mortgage-backed securities: residential 66 220,951 (1,600 ) 41 110,062 (2,565 ) 107 331,013 (4,165 ) Total investment securities available-for-sale 184 320,068 (2,159 ) 76 140,739 (3,356 ) 260 460,807 (5,515 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 2 10,745 (133 ) 1 6,198 (76 ) 3 16,943 (209 ) Total investment securities held-to-maturity 2 10,745 (133 ) 1 6,198 (76 ) 3 16,943 (209 ) Total investment securities 186 $ 330,813 $ (2,292 ) 77 $ 146,937 $ (3,432 ) 263 $ 477,750 $ (5,724 ) The amortized cost and estimated fair value of investment securities at September 30, 2018 , 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: U.S. Treasury $ — $ — $ 10,401 $ 10,403 $ 49,258 $ 48,940 $ — $ — $ 59,659 $ 59,343 Agency 10,977 10,977 12,111 12,125 68,902 68,379 21,638 21,290 113,628 112,771 Corporate — — — — 102,761 101,594 — — 102,761 101,594 Municipal bonds 3,017 3,013 31,511 31,334 70,926 69,156 129,456 127,698 234,910 231,201 Collateralized mortgage obligation: residential — — — — 872 871 25,025 24,335 25,897 25,206 Mortgage-backed securities: residential — — 1,793 1,727 141,006 137,770 398,861 385,265 541,660 524,762 Total investment securities available-for-sale 13,994 13,990 55,816 55,589 433,725 426,710 574,980 558,588 1,078,515 1,054,877 Investment securities held-to-maturity: Mortgage-backed securities: residential — — — — 933 932 44,354 43,108 45,287 44,040 Other — — — — — — 1,098 1,098 1,098 1,098 Total investment securities held-to-maturity — — — — 933 932 45,452 44,206 46,385 45,138 Total investment securities $ 13,994 $ 13,990 $ 55,816 $ 55,589 $ 434,658 $ 427,642 $ 620,432 $ 602,794 $ 1,124,900 $ 1,100,015 During the three months ended September 30, 2018 , June 30, 2018 and September 30, 2017 , the Company recognized gross gains on sales of available-for-sale securities in the amount of $1.3 million , $330,000 and $897,000 , respectively. During the three months ended September 30, 2018 and September 30, 2017 , the Company recognized gross losses on sales of available-for-sale securities in the amount of $208,000 and $1,000 , respectively. The Company did not recognize any gross losses on the sales of available-for sale securities during the three months ended June 30, 2018 . The Company had net proceeds from the sale of available-for-sale securities of $379 million , $16.2 million and $28.4 million during the the three months ended September 30, 2018 , June 30, 2018 and September 30, 2017 . During the nine months ended September 30, 2018 and September 30, 2017 , the Company recognized gross gains on sales of available-for-sale securities in the amount of $1.6 million and $3.0 million , respectively. During the nine months ended September 30, 2018 and September 30, 2017 , the Company recognized gross losses on the sales of available-for sale securities in the amount of $208,000 and $51,000 , respectively. The Company had net proceeds from the sale of available-for-sale securities of $395 million during the nine months ended September 30, 2018 and $243 million during the nine months ended September 30, 2017 . FHLB, FRB and other stock At September 30, 2018 , the Company had $23.2 million in Federal Home Loan Bank of San Francisco (“FHLB”) stock, $51.4 million in Federal Reserve Bank of San Francisco (“FRB”) stock, and $38.0 million in other stock, all carried at cost. During the three months ended September 30, 2018 , the FHLB repurchased $15.0 million of the Company’s excess FHLB stock through their stock repurchase program. During the three months ended December 31, 2017 , the FHLB did not repurchase any of the Company’s excess FHLB stock through their stock repurchase program. During the nine months ended September 30, 2018 and September 30, 2017 , the FHLB repurchased $15.0 million and $5.0 million respectively. The Company evaluates its investments in FHLB, FRB and other stock for impairment periodically, including their capital adequacy and overall financial condition. The Company recorded a net loss on Community Reinvestment Act ("CRA") equity investments of $600,000 during the three months ended September 30, 2018 . |
Loans Held for Investment
Loans Held for Investment | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, 2018 December 31, 2017 (dollars in thousands) Business loans Commercial and industrial $ 1,359,841 $ 1,086,659 Franchise 735,366 660,414 Commercial owner occupied (1) 1,675,528 1,289,213 SBA 193,487 185,514 Agribusiness 133,241 116,066 Total business loans 4,097,463 3,337,866 Real estate loans Commercial non-owner occupied 1,931,165 1,243,115 Multi-family 1,554,692 794,384 One-to-four family (2) 376,617 270,894 Construction 504,708 282,811 Farmland 138,479 145,393 Land 49,992 31,233 Total real estate loans 4,555,653 2,767,830 Consumer loans Consumer loans 114,736 92,931 Gross loans held for investment (3) 8,767,852 6,198,627 Deferred loan origination costs/(fees) and premiums/(discounts), net (8,648 ) (2,403 ) Loans held for investment 8,759,204 6,196,224 Allowance for loan losses (33,306 ) (28,936 ) Loans held for investment, net $ 8,725,898 $ 6,167,288 Loans held for sale, at lower of cost or fair value $ 52,880 $ 23,426 ______________________________ (1) Secured by real estate. (2) Includes second trust deeds. (3) Total gross loans held for investment for September 30, 2018 and December 31, 2017 are net of the unaccreted fair value net purchase discounts of $71.7 million and $29.1 million , respectively. Loans Serviced for Others The Company generally retains the servicing rights of the guaranteed portion of Small Business Administration ("SBA") loans sold, for which the Company records a servicing asset at fair value within its other assets category. At September 30, 2018 and December 31, 2017 , the servicing asset totaled $8.8 million and $8.8 million , respectively, and was included in other assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. Impairment is recognized through a valuation allowance, to the extent the fair value is less than the carrying amount. At September 30, 2018 and December 31, 2017 , the Company determined that no valuation allowance was necessary. Loans serviced for others are not included in the accompanying consolidated statements of financial condition. The unpaid principal balance of loans and participations serviced for others were $627 million at September 30, 2018 and $635 million at December 31, 2017 , including SBA participations serviced for others totaling $504 million at September 30, 2018 and $320 million at December 31, 2017 . Concentration of Credit Risk As of September 30, 2018 , 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. 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% of the Bank's unimpaired capital plus surplus for unsecured loans. These loans-to-one borrower limitations result in a dollar limitation of $512 million for secured loans and $307 million for unsecured loans at September 30, 2018 . At September 30, 2018 , the Bank’s largest aggregate outstanding balance of loans to one borrower was $81.7 million of secured credit. Credit Quality and Credit Risk Management The Company’s credit quality and credit risk is controlled 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 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, in which no well-defined deficiency or weakness exists. • 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 Bank's 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 commence 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, 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 September 30, 2018 (dollars in thousands) Business loans Commercial and industrial $ 1,325,912 $ 14,380 $ 19,549 $ — $ 1,359,841 Franchise 735,157 — 209 — 735,366 Commercial owner occupied 1,690,912 1,348 24,890 — 1,717,150 SBA 195,527 1,810 5,892 — 203,229 Agribusiness 126,695 — 6,546 — 133,241 Real estate loans Commercial non-owner occupied 1,924,416 163 8,102 — 1,932,681 Multi-family 1,553,437 — 1,255 — 1,554,692 One-to-four family 368,270 1,066 7,281 — 376,617 Construction 504,708 — — — 504,708 Farmland 138,356 — 123 — 138,479 Land 49,292 — 700 — 49,992 Consumer loans Consumer loans 114,598 5 133 — 114,736 Totals $ 8,727,280 $ 18,772 $ 74,680 $ — $ 8,820,732 Credit Risk Grades Pass Special Substandard Doubtful Total Gross December 31, 2017 (dollars in thousands) Business loans Commercial and industrial $ 1,063,452 $ 8,163 $ 15,044 $ — $ 1,086,659 Franchise 660,414 — — — 660,414 Commercial owner occupied 1,273,381 654 21,180 — 1,295,215 SBA 199,468 1 3,469 — 202,938 Agribusiness 108,143 4,079 3,844 — 116,066 Real estate loans Commercial non-owner occupied 1,242,045 — 1,070 — 1,243,115 Multi-family 794,156 — 228 — 794,384 One-to-four family 268,776 154 1,964 — 270,894 Construction 282,294 517 — — 282,811 Farmland 144,234 44 1,115 — 145,393 Land 30,979 — 254 — 31,233 Consumer loans Consumer loans 92,794 — 137 — 92,931 Totals $ 6,160,136 $ 13,612 $ 48,305 $ — $ 6,222,053 The following tables set forth delinquencies in the Company’s loan portfolio at the dates indicated: Days Past Due Current 30-59 60-89 90+ Total Gross Loans Non-accruing September 30, 2018 (dollars in thousands) Business loans Commercial and industrial $ 1,358,766 $ 334 $ 636 $ 105 $ 1,359,841 $ 1,027 Franchise 735,157 — — 209 735,366 209 Commercial owner occupied 1,716,146 793 — 211 1,717,150 — SBA 200,596 4 — 2,629 203,229 2,748 Agribusiness 133,241 — — — 133,241 — Real estate loans Commercial non-owner occupied 1,931,391 — — 1,290 1,932,681 1,290 Multi-family 1,554,103 — — 589 1,554,692 589 One-to-four family 375,694 836 76 11 376,617 1,388 Construction 504,708 — — — 504,708 — Farmland 138,479 — — — 138,479 — Land 49,988 — — 4 49,992 4 Consumer loans Consumer loans 114,718 10 8 — 114,736 13 Totals $ 8,812,987 $ 1,977 $ 720 $ 5,048 $ 8,820,732 $ 7,268 Days Past Due Current 30-59 60-89 90+ Total Gross Loans Non-accruing December 31, 2017 (dollars in thousands) Business loans Commercial and industrial $ 1,085,770 $ 84 $ 570 $ 235 $ 1,086,659 $ 1,160 Franchise 660,414 — — — 660,414 — Commercial owner occupied 1,291,255 3,474 486 — 1,295,215 97 SBA 200,821 177 — 1,940 202,938 1,201 Agribusiness 116,066 — — — 116,066 — Real estate loans Commercial non-owner occupied 1,243,115 — — — 1,243,115 — Multi-family 792,603 1,781 — — 794,384 — One-to-four family 269,725 354 — 815 270,894 817 Construction 282,811 — — — 282,811 — Farmland 145,393 — — — 145,393 — Land 31,141 83 — 9 31,233 9 Consumer loans Consumer loans 92,880 11 — 40 92,931 — Totals $ 6,211,994 $ 5,964 $ 1,056 $ 3,039 $ 6,222,053 $ 3,284 Impaired Loans 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. 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 tables provide a summary of the Company’s investment in impaired loans as of the period indicated: Impaired Loans Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans (dollars in thousands) September 30, 2018 Business loans Commercial and industrial $ 1,515 $ 1,027 $ — $ 1,027 $ — Franchise 205 209 — 209 — SBA 7,618 2,748 488 2,260 250 Real estate loans Commercial non-owner occupied 1,287 1,290 — 1,290 — Multi-family 589 589 — 589 — One-to-four family 1,476 1,388 — 1,388 — Land 34 4 — 4 — Consumer loans Consumer loans 15 13 — 13 — Totals $ 12,739 $ 7,268 $ 488 $ 6,780 $ 250 Impaired Loans Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans (dollars in thousands) December 31, 2017 Business loans Commercial and industrial $ 1,585 $ 1,160 $ — $ 1,160 $ — Commercial owner occupied 98 97 97 — 55 SBA 4,329 1,201 — 1,201 — Real estate loans One-to-four family 849 817 — 817 — Land 35 9 — 9 — Totals $ 6,896 $ 3,284 $ 97 $ 3,187 $ 55 Impaired Loans Three Months Ended September 30, 2018 June 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) (dollars in thousands) Business loans Commercial and industrial $ 1,030 $ — $ 1,272 $ — $ 446 $ 7 Franchise 209 — 70 — — — Commercial owner occupied — — 2,317 — 170 3 SBA 1,914 — 1,360 — 85 2 Real estate loans Commercial non-owner occupied 1,290 — 430 — 342 7 Multi-family 589 — 589 — — — One-to-four family 1,406 — 1,343 — 103 3 Land 5 — 6 — 11 — Consumer loans Consumer loans 13 $ — 15 — — — Totals $ 6,456 $ — $ 7,402 $ — $ 1,157 $ 22 (1) Cash basis and accrual basis is materially the same. Impaired Loans Nine Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) (dollars in thousands) Business loans: Commercial and industrial $ 1,161 $ — $ 218 $ 12 Franchise 93 — — — Commercial owner occupied 1,931 — 162 8 SBA 1,505 — 204 10 Real estate loans: Commercial non-owner occupied 573 — 114 7 Multi-family 666 — — — One-to-four family 1,258 — 108 9 Land 6 — 13 1 Consumer loans: Consumer loans 41 — — — Totals $ 7,234 $ — $ 819 $ 47 (1) Cash basis and accrual basis is materially the same. The following table provides additional detail on the components of impaired loans at the period end indicated: September 30, 2018 December 31, 2017 (dollars in thousands) Nonaccruing loans $ 7,268 $ 3,284 Accruing loans — — Total impaired loans $ 7,268 $ 3,284 When loans are placed on nonaccrual status, previously accrued but unpaid 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 timely collection of principal or interest. The Company had impaired loans on nonaccrual status of $7.3 million at September 30, 2018 and $3.3 million at December 31, 2017 . The Company had no loans 90 days or more past due and still accruing at September 30, 2018 , compared to $1.8 million at December 31, 2017 . There were no TDRs at September 30, 2018 and $97,000 at December 31, 2017 . The Company had no consumer mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in process as of September 30, 2018 . This compares to $73,000 at December 31, 2017 . Purchased Credit Impaired Loans The Company has purchased loans that have experienced deterioration of credit quality between origination and acquisition and for which it was probable, at acquisition, that not all contractually required payments would be collected. The carrying amount of those loans is as follows: September 30, 2018 December 31, 2017 (dollars in thousands) Business loans Commercial and industrial $ 1,700 $ 3,310 Commercial owner occupied 2,808 1,262 SBA 1,304 1,802 Real estate loans Commercial non-owner occupied 1,077 1,650 One-to-four family 909 255 Construction — 517 Land 76 83 Consumer loans 8 10 Total purchase credit impaired $ 7,882 $ 8,889 On each 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 September 30, 2018 , the Company had $7.9 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 and nine month periods indicated. Three Months Ended Nine Months Ended September 30, June 30, September 30, June 30, 2018 2018 2017 2018 2017 (dollars in thousands) Balance at the beginning of period $ 1,473 $ 1,709 $ 3,497 $ 3,019 $ 3,747 Additions 483 — — 483 2,036 Accretion (162 ) (270 ) (388 ) (668 ) (1,729 ) Payoffs (1 ) 32 39 (1,819 ) 39 Reclassification from (to) nonaccretable difference 195 2 — 973 (945 ) Balance at the end of period $ 1,988 $ 1,473 $ 3,148 $ 1,988 $ 3,148 |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
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 probable incurred losses inherent in the remainder of the loan portfolio. The ALLL is prepared using the information provided by the Company’s credit review process together with data from peer institutions and economic information gathered from published sources. The loan portfolio is segmented into groups of loans with similar risk characteristics. Each segment possesses varying degrees of risk based on, among other things, the type of loan, the type of collateral and the sensitivity of the borrower or industry to changes in external factors such as economic conditions. An estimated loss rate calculated using the Company’s actual historical loss rates adjusted for current portfolio trends, economic conditions and other relevant internal and external factors, is applied to each group’s aggregate loan balances. The Company’s base ALLL factors are determined by management using the Bank’s annualized actual trailing charge-off data over a full credit cycle with the loss emergence period extending from 1 year to 1.4 years . 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 a migration analysis of risk grading and net charge-offs. 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 nine months ended for the periods indicated: Three Months Ended September 30, 2018 Commercial and industrial Franchise Commercial owner occupied SBA Agribusiness Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Consumer loans Total (dollars in thousands) Balance, June 30, 2018 $ 10,164 $ 6,181 $ 1,137 $ 2,575 $ 2,694 $ 1,450 $ 563 $ 698 $ 4,809 405 $ 972 $ 99 $ 31,747 Charge-offs (100 ) — — (44 ) — — — — — — — (85 ) (229 ) Recoveries 120 — 8 8 — — — — — — — 6 142 Provisions for (reduction in) loan losses 200 151 68 288 871 33 60 21 11 (30 ) (104 ) 77 1,646 Balance, September 30, 2018 $ 10,384 $ 6,332 $ 1,213 $ 2,827 $ 3,565 $ 1,483 $ 623 $ 719 $ 4,820 $ 375 $ 868 $ 97 $ 33,306 Three Months Ended September 30, 2017 Commercial and industrial Franchise Commercial owner occupied SBA Agribusiness Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Consumer loans Total (dollars in thousands) Balance, June 30, 2017 $ 7,644 $ 5,367 $ 672 $ 2,519 $ 206 $ 1,204 $ 611 $ 724 $ 5,036 28 $ 959 $ 85 $ 25,055 Charge-offs (32 ) — — — — — — — — — — — (32 ) Recoveries 15 — 12 42 — — — 2 — — — — 71 Provisions for (reduction in) loan losses 682 452 131 409 (37 ) 116 47 120 104 64 (15 ) (24 ) 2,049 Balance, September 30, 2017 $ 8,309 $ 5,819 $ 815 $ 2,970 $ 169 $ 1,320 $ 658 $ 846 $ 5,140 $ 92 $ 944 $ 61 $ 27,143 Nine Months Ended September 30, 2018 Commercial and industrial Franchise Commercial owner occupied SBA Agribusiness Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Consumer loans Total (dollars in thousands) Balance, December 31, 2017 $ 9,721 $ 5,797 $ 767 $ 2,890 $ 1,291 $ 1,266 $ 607 $ 803 $ 4,569 $ 137 $ 993 $ 95 $ 28,936 Charge-offs (1,011 ) — — (100 ) — — — — — — — (137 ) (1,248 ) Recoveries 283 — 32 43 — — — 1 — — — 7 366 Provisions for (reduction in) loan losses 1,391 535 414 (6 ) 2,274 217 16 (85 ) 251 238 (125 ) 132 5,252 Balance, September 30, 2018 $ 10,384 $ 6,332 $ 1,213 $ 2,827 $ 3,565 $ 1,483 $ 623 $ 719 $ 4,820 $ 375 $ 868 $ 97 $ 33,306 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ 250 $ — $ — $ — $ — $ — $ — $ — $ — $ 250 General portfolio allocation 10,384 6,332 1,213 2,577 3,565 1,483 623 719 4,820 375 868 97 33,056 Loans individually evaluated for impairment 1,027 209 — 2,748 — 1,290 589 1,388 — — 4 13 7,268 Specific reserves to total loans individually evaluated for impairment — % — % — % 9.10 % — % — % — % — % — % — % — % — % 3.44 % Loans collectively evaluated for impairment $ 1,358,814 $ 735,157 $ 1,675,528 $ 190,739 $ 133,241 $ 1,929,875 $ 1,554,103 $ 375,229 $ 504,708 $ 138,479 $ 49,988 $ 114,723 $ 8,760,584 General reserves to total loans collectively evaluated for impairment 0.76 % 0.86 % 0.07 % 1.35 % 2.68 % 0.08 % 0.04 % 0.19 % 0.96 % 0.27 % 1.74 % 0.08 % 0.38 % Total gross loans held for investment $ 1,359,841 $ 735,366 $ 1,675,528 $ 193,487 $ 133,241 $ 1,931,165 $ 1,554,692 $ 376,617 $ 504,708 $ 138,479 $ 49,992 $ 114,736 $ 8,767,852 Total allowance to gross loans held for investment 0.76 % 0.86 % 0.07 % 1.46 % 2.68 % 0.08 % 0.04 % 0.19 % 0.96 % 0.27 % 1.74 % 0.08 % 0.38 % Nine Months Ended September 30, 2017 Commercial and industrial Franchise Commercial owner occupied SBA Agribusiness Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Consumer 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 (894 ) — — (8 ) — — — — — — — — (902 ) Recoveries 70 — 94 125 — — — 4 — — — 1 294 Provisions for (reduction in) loan losses 2,771 1,974 (472 ) 1,814 169 (395 ) (2,269 ) 477 1,508 92 746 40 6,455 Balance, September 30, 2017 $ 8,309 $ 5,819 $ 815 $ 2,970 $ 169 $ 1,320 $ 658 $ 846 $ 5,140 $ 92 $ 944 $ 61 $ 27,143 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ — $ — $ — — $ — $ — $ — General portfolio allocation 8,309 5,819 815 2,970 169 1,320 658 846 5,140 92 944 61 27,143 Loans individually evaluated for impairment 228 — 83 90 — — — 103 11 — — — 515 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % — % — % — % — — % — % — % Loans collectively evaluated for impairment $ 762,863 $ 626,508 $ 805,054 $ 107,121 $ 86,466 $ 1,098,995 $ 797,370 $ 246,145 $ 301,323 140,581 $ 30,719 $ 6,228 $ 5,009,373 General reserves to total loans collectively evaluated for impairment 1.09 % 0.93 % 0.10 % 2.77 % 0.20 % 0.12 % 0.08 % 0.34 % 1.71 % 0.07 % 3.07 % 0.98 % 0.54 % Total gross loans held for investment $ 763,091 $ 626,508 $ 805,137 $ 107,211 $ 86,466 $ 1,098,995 $ 797,370 $ 246,248 $ 301,334 140,581 $ 30,719 $ 6,228 $ 5,009,888 Total allowance to gross loans held for investment 1.09 % 0.93 % 0.10 % 2.77 % 0.20 % 0.12 % 0.08 % 0.34 % 1.71 % 0.07 % 3.07 % 0.98 % 0.54 % |
Subordinated Debentures
Subordinated Debentures | 9 Months Ended |
Sep. 30, 2018 | |
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 3rd and September 3rd 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 October 26, 2018. In March 2004, the Corporation issued $10.3 million of Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Subordinated Debentures”) to PPBI Trust I, statutory trust created under the laws of the State of Delaware. The Subordinated Debentures are subordinated to effectively all borrowings of the Corporation and are due and payable on April 6, 2034. Interest is payable quarterly on the Subordinated Debentures at three-month LIBOR plus 2.75% per annum, for an effective rate of 5.09% per annum, as of September 30, 2018 . The Subordinated Debentures may be redeemed, in part or whole, on or after April 7, 2009 at the option of the Corporation, at par. The Subordinated Debentures can also be redeemed at par if certain events occur that impact the tax treatment or the capital treatment of the issuance. The Corporation also purchased a 3% minority interest totaling $310,000 in PPBI Trust I. The balance of equity of PPBI Trust I is comprised of mandatorily redeemable securities (“Trust Preferred Securities”) and is included in the Corporation's other assets category. PPBI Trust I sold $10,000,000 of Trust Preferred Securities to investors in a private offering. On April 1, 2017, as part of the HEOP acquisition, the Corporation 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 4.06% per annum as of September 30, 2018 . At September 30, 2018 , the carrying value of these debentures was $4.0 million , which reflects purchase accounting fair value adjustments of $1.3 million . The Corporation 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 September 30, 2018 , the carrying value of Mission Community Capital Trust I and Santa Lucia Bancorp (CA) Capital Trust were $2.8 million and $3.8 million , respectively, which reflects purchase accounting fair value adjustments of $311,000 and $1.3 million , respectively. Interest is payable quarterly at three-month LIBOR plus 2.95% per annum, for an effective rate of 5.29% per annum as of September 30, 2018 for Mission Community Capital Trust I. Interest is payable quarterly at three-month LIBOR plus 1.48% per annum, for an effective rate of 3.82% per annum as of September 30, 2018 for Santa Lucia Bancorp (CA) Capital Trust. These three debentures are callable by the Corporation at par. On November 1, 2017, as part of the Plaza acquisition, the Corporation assumed three subordinated notes totaling $25 million at a fixed interest rate of 7.125% payable in arrears on a quarterly basis. The notes have a maturity date of June 26, 2025 and are also redeemable in whole or in part beginning on June 26, 2020 at an amount equal to 103.0% of principal plus accrued unpaid interest. The redemption price decreases 50 basis points each subsequent year. On July 1, 2018, as part of the Grandpoint acquisition, the Corporation assumed $5.2 million of floating rate junior subordinated debt securities associated with First Commerce Bancorp Statutory Trust I. Interest is payable quarterly at three-month LIBOR plus 2.95% per annum, for an effective rate of 5.28% per annum as of September 30, 2018 . At September 30, 2018 , the carrying value of these debentures was $4.9 million , which reflects purchase accounting fair value adjustments of $228,000 . 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 relating to trust preferred securities as a component of the Company’s liabilities. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
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 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 Nine Months Ended September 30, June 30, September 30, September 30, 2018 2018 2017 2018 2017 Weighted average stock options excluded — — 10,036 7,530 12,192 The following tables set forth the Company’s earnings per share calculations for the periods indicated: Three Months Ended September 30, 2018 June 30, 2018 September 30, 2017 Net Shares Per Share Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 28,392 $ 27,303 $ 20,232 Basic income available to common stockholders 28,392 61,727,030 $ 0.46 27,303 46,053,077 $ 0.59 20,232 39,709,565 $ 0.51 Dilutive effect of share-based compensation — 634,774 — 649,891 — 776,549 Diluted income available to common stockholders plus assumed conversions $ 28,392 62,361,804 $ 0.46 $ 27,303 46,702,968 $ 0.58 $ 20,232 40,486,114 $ 0.50 Nine Months Ended September 30, 2018 2017 Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 83,697 $ 43,929 Basic income available to common stockholders 83,697 51,282,533 $ 1.63 43,929 35,652,626 $ 1.23 Effect of dilutive stock options and warrants 683,114 803,319 Diluted income available to common stockholders plus assumed conversions $ 83,697 51,965,647 $ 1.61 $ 43,929 36,455,945 $ 1.20 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of an asset or liability is the exchange price that would be received to sell that asset or paid to transfer that liability (exit price) 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 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. 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. 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 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. 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. Impaired Loans and Other Real Estate Owned – 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 September 30, 2018 and December 31, 2017, substantially all the Company’s impaired loans were evaluated based on the fair value of their underlying collateral based upon the most recent appraisal available to management and has recorded a specific reserve on one loan in the amount of $250,000 with a principal balance of $488,000 . 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 owned 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. The fair value estimates presented herein are based on pertinent information available to management as of the dates indicated, representing an exit price. At September 30, 2018 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 263,212 $ 263,212 $ — $ — $ 263,212 Interest-bearing time deposits with financial institutions 6,386 6,386 — — 6,386 Investments held-to-maturity 46,385 — 45,138 — 45,138 Investment securities available-for-sale 1,054,877 — 1,054,877 — 1,054,877 FHLB, FRB and other stock 112,649 N/A N/A N/A N/A Loans held for sale 52,880 — 52,880 — 52,880 Loans held for investment, net 8,759,204 — — 8,694,408 8,694,408 Derivative asset 3,858 — 3,272 — 3,272 Accrued interest receivable 37,683 37,683 — — 37,683 Liabilities: Deposit accounts 8,502,145 7,193,880 1,310,444 — 8,504,324 FHLB advances 859,622 — 859,622 — 859,622 Other borrowings 2,350 — 2,350 — 2,350 Subordinated debentures 110,244 — 122,177 — 122,177 Derivative liability 3,858 — 3,272 — 3,272 Accrued interest payable 3,303 3,303 — — 3,303 At December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 197,164 $ 197,164 $ — $ — $ 197,164 Interest-bearing time deposits with financial institutions 6,633 6,633 — — 6,633 Investments held-to-maturity 18,291 — 18,082 — 18,082 Investment securities available-for-sale 787,429 — 787,429 — 787,429 FHLB, FRB and other stock 65,881 N/A N/A N/A N/A Loans held for sale 23,426 — 23,524 — 23,524 Loans held for investment, net (1) 6,167,288 — — 6,269,366 6,269,366 Derivative asset 1,135 — 1,135 — $ 1,135 Accrued interest receivable 27,060 27,060 — — 27,060 Liabilities: Deposit accounts 6,085,886 5,001,053 1,074,564 — 6,075,617 FHLB advances 490,148 — 489,823 — 489,823 Other borrowings 46,139 — 46,373 — 46,373 Subordinated debentures 105,123 — 115,159 — 115,159 Derivative liability 1,135 — 1,135 — 1,135 Accrued interest payable 2,131 2,131 — — 2,131 (1) The estimated fair value of loans held for investment, net for December 31, 2017 is not based on an exit price assumption. 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: September 30, 2018 Fair Value Measurement Using Level 1 Level 2 Level 3 Total Fair Value (dollars in thousands) Financial assets Investment securities available-for-sale: U.S. Treasury $ — $ 59,343 $ — $ 59,343 Agency — 112,771 — 112,771 Corporate — 101,594 — 101,594 Municipal bonds — 231,201 — 231,201 Collateralized mortgage obligation — 25,206 — 25,206 Mortgage-backed securities — 524,762 — 524,762 Total securities available-for-sale $ — $ 1,054,877 $ — $ 1,054,877 Derivative assets $ — $ 3,858 $ — $ 3,858 Financial liabilities Derivative liabilities $ — $ 3,858 $ — $ 3,858 December 31, 2017 Fair Value Measurement Using Level 1 Level 2 Level 3 Total Fair Value (dollars in thousands) Financial assets Investment securities available-for-sale: Agency $ — $ 47,209 $ — $ 47,209 Corporate — 79,546 — 79,546 Municipal bonds — 232,128 — 232,128 Collateralized mortgage obligation — 33,781 — 33,781 Mortgage-backed securities — 394,765 — 394,765 Total securities available-for-sale $ — $ 787,429 $ — $ 787,429 Derivative assets $ — $ 1,135 $ — $ 1,135 Financial liabilities Derivative liabilities $ — $ 1,135 $ — $ 1,135 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. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 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. The Company had swaps with matched terms with an aggregate notional amount of $61.6 million and a fair value of $3.9 million at September 30, 2018 compared with an aggregate notional amount of $58.6 million and a fair value of $1.1 million at December 31, 2017 . The fair value of these agreements are determined through a third party valuation model used by the Company's counterparty bank, which uses observable market data such as cash LIBOR rates, prices of Eurodollar future contracts and market swap rates. 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 nine months ended September 30, 2018 and year ended December 31, 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 September 30, 2018 and December 31, 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: September 30, 2018 Derivative Assets Derivative Liabilities Notional Fair Value Notional Fair Value (dollars in thousands) Derivative instruments not designated as hedging instruments: Interest rate swap contracts $ 61,642 $ 3,858 $ 61,642 $ 3,858 Total derivative instruments $ 61,642 $ 3,858 $ 61,642 $ 3,858 December 31, 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 $ 58,599 $ 1,135 $ 58,599 $ 1,135 Total derivative instruments $ 58,599 $ 1,135 $ 58,599 $ 1,135 |
Balance Sheet Offsetting
Balance Sheet Offsetting | 9 Months Ended |
Sep. 30, 2018 | |
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. Financial instruments that are eligible for offset in the consolidated statements of financial condition as of September 30, 2018 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) September 30, 2018 Financial assets: Derivatives not designated as $ 3,917 $ (59 ) $ 3,858 $ — $ — $ 3,858 Total $ 3,917 $ (59 ) $ 3,858 $ — $ — $ 3,858 Financial liabilities: Derivatives not designated as $ 3,858 $ — $ 3,858 $ — $ — $ 3,858 Total $ 3,858 $ — $ 3,858 $ — $ — $ 3,858 (1) Represents cash collateral held with counterparty bank. Financial instruments that are eligible for offset in the consolidated statements of financial condition as of December 31, 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) December 31, 2017 Financial assets: Derivatives not designated as $ 1,833 $ (698 ) $ 1,135 $ — $ — $ 1,135 Total $ 1,833 $ (698 ) $ 1,135 $ — $ — $ 1,135 Financial liabilities: Derivatives not designated as $ 1,135 $ — $ 1,135 $ — $ — $ 1,135 Total $ 1,135 $ — $ 1,135 $ — $ — $ 1,135 (1) Represents cash collateral held with counterparty bank. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company earns revenue from a variety of sources. The Company’s principal source of revenue is interest income on loans, investment securities and other interest earning assets, while the remainder of the Company’s revenue is earned from a variety of fees, service charges, gains and losses, and other income, all of which are classified as noninterest income. Revenue from interest on loans and investment securities is accounted for on an accrual basis using the interest method, while revenue from other sources is accounted for under other applicable U.S. GAAP as well as ASC 606 - Revenue from Contracts with Customers . Revenue streams within the scope of and accounted for under ASC 606 include: service charges and fees on deposit accounts, debit card interchange fees, fees from other services the Company provides its customers and gains and losses from the sale of other real estate owned and property, premises and equipment. ASC 606 requires revenue to be recognized when the Company satisfies the related performance obligations by transferring to the customer a good or service. The recognition of revenue under ASC 606 requires the Company to first identify the contract with the customer, identify the associated performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and finally recognize revenue when the performance obligations have been satisfied and the good or service has been transferred. The majority of the Company’s contracts with customers associated with revenue streams that are within the scope of ASC 606 are considered short-term in nature and can be canceled at any time by the customer or the Company without penalty, such as a deposit account agreement. These revenue streams are included in non-interest income. The following tables provide a summary of the Company’s revenue streams, including those that are within the scope of ASC 606 and those that are accounted for under other applicable U.S. GAAP: Three Months Ended September 30, 2018 June 30, 2018 September 30, 2017 Within Scope (1) Out of Scope (2) Within Scope (1) Out of Scope (2) Within Scope (1) Out of Scope (2) (dollars in thousands) Interest income: Loans $ — $ 119,271 $ — $ 85,625 $ — $ 64,915 Investment securities and other interest-earning assets — 9,605 — 7,074 — 5,246 Total interest income — 128,876 — 92,699 — 70,161 Noninterest income: Loan servicing fees — 400 — 292 — 276 Service charges on deposit accounts 874 — 1,057 — 946 — Other service fee income 317 — 169 — 851 — Debit card interchange income 1,061 — 1,090 — 248 — Earnings on bank-owned life insurance — 1,270 — 617 — 629 Net gain from sales of loans — 2,029 — 3,843 — 3,439 Net gain from sales of investment securities — 1,063 — 330 — 896 Other income (446 ) 976 293 460 163 773 Total noninterest income 1,806 5,738 2,609 5,542 2,208 6,013 Total revenues $ 1,806 $ 134,614 $ 2,609 $ 98,241 $ 2,208 $ 76,174 ______________________________ (1) Revenues from contracts with customers accounted for under ASC 606. (2) Revenues not within the scope of ASC 606 and accounted for under other applicable U.S. GAAP requirements. Nine Months Ended September 30, 2018 2017 Within Scope (1) Out of Scope (2) Within Scope (1) Out of Scope (2) (dollars in thousands) Interest income: Loans $ — $ 289,069 $ — $ 170,905 Investment securities and other interest-earning assets — 23,333 — 13,416 Total interest income — 312,402 — 184,321 Noninterest income: Loan servicing fees — 1,037 — 641 Service charges on deposit accounts 3,081 — 2,153 — Other service fee income 632 — 1,725 — Debit card interchange income 3,187 — 994 — Earnings on bank-owned life insurance — 2,498 — 1,654 Net gain from sales of loans — 8,830 — 9,137 Net gain from sales of investment securities — 1,399 — 2,989 Other income 84 2,613 301 2,069 Total noninterest income 6,984 16,377 5,173 16,490 Total revenues $ 6,984 $ 328,779 $ 5,173 $ 200,811 ______________________________ (1) Revenues from contracts with customers accounted for under ASC 606. (2) Revenues not within the scope of ASC 606 and accounted for under other applicable U.S. GAAP requirements. The following provides information concerning the major components of the Company’s revenue: Interest Income Interest income is comprised of interest on loans, investment securities and other interest-earning assets. Interest is recognized using the interest method, which reflects the contractual yield on loans and coupon yield for investment securities. These yields are adjusted for purchase discounts, premiums and net deferred loan origination fees for newly originated loans. Loan Servicing Fees Loan servicing fees generally consist of fees related to servicing of loans for others, as well as the net impact of related serving asset amortization. ASC 606 stipulates that income streams generated through the transfer and servicing of financial instruments shall be accounted for under ASC 860 - Transfers and Servicing and is therefore excluded from the scope of ASC 606. Service Charges on Deposit Accounts and Other Service Fee Income Service charges on deposit accounts and other service fee income consists of periodic service charges on deposit accounts and transaction based fees such as those related to overdrafts, ATM charges and wire transfer fees. The majority of these revenues are accounted for under ASC 606. Performance obligations for periodic service charges on deposit accounts are typically short-term in nature and are generally satisfied on a monthly basis, while performance obligations for other transaction based fees are typically satisfied at a point in time (which may consist of only a few moments to perform the service or transaction) with no further obligations on behalf of the Company to the customer. Periodic service charges are generally collected monthly directly from the customer's deposit account, and at the end of a statement cycle, while transaction based service charges are typically collected at the time of or soon after the service is performed. Debit Card Interchange Income Debit card interchange fee income consists of transaction processing fees associated with customer debit card transactions processed through a payment network and are accounted for under ASC 606. These fees are earned each time a request for payment is originated by a customer debit cardholder at a merchant. In these transactions, the Company transfers funds from the debit cardholder’s account to a merchant through a payment network at the request of the debit cardholder by way of the debit card transaction. The related performance obligations are generally satisfied when the transfer of funds is complete, which is generally a point in time when the debit card transaction is processed. Debit card interchange fees are typically received and recorded as revenue on a daily basis. Earnings on Bank-Owned Life Insurance Earnings on bank-owned life insurance relates to the periodic increase in the cash surrender value of bank-owned life insurance policies on certain key employees of the Company for which the Company is the owner and beneficiary of the related policies. This revenue stream is excluded from the scope of ASC 606, and is accounted for under other applicable U.S. GAAP provisions (ASC 325-30). Gains and (Losses) from Sales of Loans and Investment Securities ASC 606 stipulates that gains and (losses) from the periodic sale of loans and investment securities are excluded from ASC 606 and are accounted for under other applicable U.S. GAAP provisions. Other Income Other income generally consists of recoveries on acquired loans, which were fully charged off and had no book value prior to their acquisition. This revenue stream is excluded from the scope of ASC 606 and is accounted for under other applicable U.S. GAAP provisions. Other income also consists of other miscellaneous fees, which are accounted for under ASC 606; however, much like service charges on deposit accounts, these fees have performance obligations that are very short-term in nature and are typically satisfied at a point in time. Revenue is typically recorded at the time these fees are collected, which is generally upon the completion the related transaction or service provided. Other revenue streams that may be applicable to the Company include gains and losses from the sale of non-financial assets such as other real estate owned and property premises and equipment. The Company accounts for these revenue streams in accordance with ASC 610-20, which requires the Company to look to guidance in ASC 606 in the application of certain measurement and recognition concepts. The Company records gains and losses on the sale of non-financial assets when control of the asset has been surrendered to the buyer, which generally occurs at a specific point in time. Practical Expedient The Company also employs a practical expedient with respect to contract acquisition costs, which are generally capitalized and amortized into expense. These costs relate to expenses incurred directly attributable to the efforts to obtain a contract. The practical expedient allows the Company to immediately recognize contract acquisition costs in current period earnings when these costs would have been amortized over a period of one year or less. At September 30, 2018 the Company did not have any material contract assets or liabilities in its consolidated financial statements related to revenue streams within the scope of ASC 606, and there were no material changes in those balances during the reporting period. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Adoption of Stock Repurchase Program On October 26, 2018, the Company announced that its Board of Directors had approved a new stock repurchase program. Under the stock repurchase program, management is authorized to repurchase up to $100 million of the Company’s common stock. The stock repurchase program may be limited or terminated at any time without prior notice. The stock repurchase program is intended to replace and supersede the Company’s prior stock repurchase program, which was approved in June 2012 and authorized the repurchase of up to 1,000,000 shares of the Company’s common stock. An aggregate of 237,455 shares of the Company’s common stock were repurchased under that program. Under the stock repurchase program, the Company may repurchase shares of common stock from time to time in open market transactions or in privately negotiated transactions as permitted under applicable rules and regulations. Repurchases may be conducted from time to time and may be suspended or terminated at any time without notice. The extent to which the Company repurchases its shares of common stock and the timing of such purchases will depend upon market conditions and other considerations as may be considered in the Company’s sole discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the "Exchange Act") which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Accounting Standards Adopted in 2018 In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU" or "Update") 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law, which among other things reduced the maximum federal corporate tax rate from 35% to 21%. This Update addresses concerns about the guidance in current U.S. GAAP that requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance is applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income ("AOCI") were originally recognized in other comprehensive income (rather than in income from continuing operations). As a result of the adjustment of deferred taxes being required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (referred to as stranded tax effects for purposes of this Update) did not reflect the appropriate tax rate. This Update allows for an election to reclassify between retained earnings and AOCI the impact of the federal income tax rate change. The amendments in this Update are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption of the amendments of this Update is permitted. The Company elected to early adopt in the first quarter of 2018. Accordingly, the Company recorded an increase to AOCI and a decrease to retain earnings of approximately $82,000 for stranded tax effects on available for sale investment securities in the first quarter of 2018. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . Under the current implementation guidance in Topic 805, there are three elements of a business-inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. The amendments in this Update provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the Company has developed more stringent criteria for sets without outputs. Lastly, the amendments in this Update narrow the definition of the term output so that the term is consistent with how outputs are described in Topic 606. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. The adoption of this standard did not have a material effect on the Company's operating results or financial condition. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This Update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of this standard did not have a material effect on the Company's operating results or financial condition. In August 2016, the FASB issued ASU 2016-15, Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This Update provides guidance on eight specific cash flow classification issues, which include: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or debt with coupon interest rates that are insignificant in relation to the effective interest rate; 3) contingent consideration payments made soon after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investments; 7) beneficial interest in securitization transactions; and 8) separately identifiable cash flows and the application of the predominance principle. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period; however, an entity is required to adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The adoption of this standard did not have a material effect on the Company's operating results or financial condition. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, ASU 2018-04, Investments-Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No.33-9273 (SEC Update), ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Changes made to the current measurement model primarily affect the accounting for equity securities with readily determinable fair values, where changes in fair value are included in earnings instead of other comprehensive income. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. This Update also changes the presentation and disclosure requirements for financial instruments including a requirement that public business entities use exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. This Update is effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 did not have a material effect on the Company's operating results or financial condition. In accordance with the guidance, the Company measures the fair value of financial instruments reported at amortized cost on the statement of financial condition using the exit price notion. For further details, refer to Note 10 - Fair Value of Financial instruments. 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. The Company adopted the provisions of ASU 2014-09 and its related amendments effective January 1, 2018 utilizing the modified retrospective transition method and determined the adoption was insignificant to the financial statements. Since the impact upon adoption of ASU 2014-09 and its related amendments was insignificant to the financial statements, a cumulative effect adjustment to retained earnings was not deemed necessary. The Company's review of its various revenue streams indicated that approximately 99% of the Company’s revenue is out of the scope of ASU 2014-09 and its related amendments, including all of the Company’s net interest income and a significant portion of non-interest income. For those revenue streams that are within the scope of ASU 2014-09 and its related amendments, the Company reviewed the associated customer contracts and agreements to determine the appropriate accounting for revenues under those contracts. The Company’s review did not identify any significant changes in the timing of revenue recognition under those contracts within the scope of ASU 2014-09 and its related amendments. Significant revenue streams that are within scope primarily relate to service charges and fees associated customer deposit accounts, as well as fees for various other services the Company provides its customers. As a result of the implementation of ASU 2014-09 and its related amendments, the Company will conduct a detailed review of its revenue streams at least annually, or more frequently if deemed necessary. Recent Accounting Guidance Not Yet Effective In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . The following disclosure requirements for public companies were removed from Topic 820: • The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy • The policy for timing of transfers between levels • The valuation processes for Level 3 fair value measurements The following disclosure requirements for public companies were modified in Topic 820: • The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date The following disclosure requirements for public companies were added to Topic 820: • The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period • The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. In addition, an entity may early adopt any of the removed or modified disclosures immediately and delay adoption of the new disclosures until the effective date. The Company is currently evaluating the effects of ASU 2018-13 on its financial statements and disclosures. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchase Callable Debt Securities . This Update amends guidance on the amortization period of premiums on certain purchased callable debt securities. The amendments shorten the amortization period of premiums on purchased callable debt securities to the earliest call date. This Update should be applied on a modified retrospective basis through a cumulative-effect adjustment to beginning retained earnings. The effective date of ASU 2017-08 is for interim and annual reporting periods beginning after December 15, 2018. The adoption of this standard is not expected to have a material effect on the Company's operating results or financial condition. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This Update replaces the incurred loss impairment model in current U.S. GAAP with a model that reflects current expected credit losses (“CECL”). The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures. The Update requires that all expected credit losses for financial assets held at the reporting date be measured based on historical experience, current conditions and reasonable and supportable forecasts. The Update also requires enhanced disclosure, including qualitative and quantitative disclosures that provide additional information about significant estimates and judgments used in estimating credit losses. For public business entities, the Update is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures. The Company has formed a committee made up of members of finance, credit and risk management that are in the process of compiling and analyzing key data elements and implementing a software model that will meet the requirements of the new guidance. The magnitude of the adjustment and the overall impact of the new guidance on the consolidated financial statements cannot yet be reasonably estimated. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), ASU 2018-11, Leases (Topic 842): Targeted Improvements, ASU 2018-10, Codification Improvements to Topic 842, Leases. This Update is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be recorded in the consolidated statements of financial condition, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The Update provides an optional transition method where only the most recent period presented will reflect the adoption with a cumulative-effect adjustment to the opening balance of retained earnings, and the comparative prior periods will be reported under the previous guidance in Topic 840. 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 currently in the process of finalizing its identification and evaluation of lease obligations and service agreements under the provisions of the new standard. This evaluation includes an assessment of the appropriate classification and related accounting of each lease agreement under the new standard, a review of applicability of the new standard to existing service agreements and gathering all essential lease data that will facilitate the application of the new standard. Upon adoption of the new standard articulated in this Update, the Company will record a liability representing an obligation to make future lease payments and will also record an asset representing rights to use the underlying leased assets. As of September 30, 2018, the Company believes these assets and liabilities to be recognized under the new standard will amount to less than 1% of the Company's total assets. |
Revenue Recognition | Revenue Recognition –The Company accounts for certain of its revenue streams in accordance with ASC 606 - Revenue from Contracts with Customers . Revenue streams within the scope of and accounted for under ASC 606 include: service charges and fees on deposit accounts, debit card interchange fees, fees from other services the Bank provides its customers and gains and losses from the sale of other real estate owned and property, premises and equipment. ASC 606 requires revenue to be recognized when the Company satisfies related performance obligations by transferring to the customer a good or service. The recognition of revenue under ASC 606 requires the Company to first identify the contract with the customer, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and finally recognize revenue when the performance obligations have been satisfied and the good or service has been transferred. The majority of the Company’s contracts with customers associated with revenue streams that are within the scope of ASC 606 are considered short-term in nature and can be canceled at any time by the customer or the Bank, such as a deposit account agreement. Other more significant revenue streams for the Company such as interest income on loans and investment securities are specifically excluded from the scope of ASC 606 and are accounted for under other applicable U.S. GAAP. |
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 the fourth quarter as the period 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 U.S. GAAP 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 | The fair value of an asset or liability is the exchange price that would be received to sell that asset or paid to transfer that liability (exit price) 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 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. 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. 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 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. 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. Impaired Loans and Other Real Estate Owned – 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 September 30, 2018 and December 31, 2017, substantially all the Company’s impaired loans were evaluated based on the fair value of their underlying collateral based upon the most recent appraisal available to management and has recorded a specific reserve on one loan in the amount of $250,000 with a principal balance of $488,000 . 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 owned 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 Grandpoint as of July 1, 2018 and the fair value adjustments and amounts recorded by the Company in 2018 under the acquisition method of accounting, which are subject to adjustment for up to one year after the merger date: Grandpoint Book Value Fair Value Adjustments Fair Value ASSETS ACQUIRED (dollars in thousands) Cash and cash equivalents $ 147,551 $ — $ 147,551 Investment securities 395,905 (3,047 ) 392,858 Loans, gross 2,404,042 (51,654 ) 2,352,388 Allowance for loan losses (18,665 ) 18,665 — Fixed assets 6,015 3,107 9,122 Core deposit intangible 5,093 66,850 71,943 Deferred tax assets 14,185 (9,649 ) 4,536 Other assets 97,441 (195 ) 97,246 Total assets acquired $ 3,051,567 $ 24,077 $ 3,075,644 LIABILITIES ASSUMED Deposits $ 2,506,663 $ 266 $ 2,506,929 Borrowings 255,155 (232 ) 254,923 Other liabilities 23,687 1,172 24,859 Total liabilities assumed 2,785,505 1,206 2,786,711 Excess of assets acquired over liabilities assumed $ 266,062 $ 22,871 288,933 Consideration paid 601,172 Goodwill recognized $ 312,239 The following table represents the assets acquired and liabilities assumed of Plaza as of November 1, 2017 and the fair value adjustments and amounts recorded by the Company in 2017 under the acquisition method of accounting: Plaza Fair Value Adjustments Fair Value ASSETS ACQUIRED (dollars in thousands) Cash and cash equivalents $ 150,459 $ — $ 150,459 Loans, gross 1,069,359 (6,458 ) 1,062,901 Allowance for loan losses (13,009 ) 13,009 — Fixed assets 7,389 (194 ) 7,195 Core deposit intangible 198 10,575 10,773 Deferred tax assets 11,849 (6,343 ) 5,506 Other assets 19,495 (589 ) 18,906 Total assets acquired $ 1,245,740 $ 10,000 $ 1,255,740 LIABILITIES ASSUMED Deposits $ 1,081,727 $ 1,224 $ 1,082,951 Borrowings 40,755 397 41,152 Other liabilities 8,956 (451 ) 8,505 Total liabilities assumed 1,131,438 1,170 1,132,608 Excess of assets acquired over liabilities assumed $ 114,302 $ 8,830 123,132 Consideration paid 245,761 Goodwill recognized $ 122,629 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 445,299 (2,376 ) 442,923 Loans, gross 1,384,949 (20,261 ) 1,364,688 Allowance for loan losses (17,200 ) 17,200 — Fixed assets 35,567 (665 ) 34,902 Core deposit intangible 3,207 24,916 28,123 Deferred tax assets 17,850 (7,606 ) 10,244 Other assets 55,235 (21 ) 55,214 Total assets acquired $ 2,003,635 $ 11,187 $ 2,014,822 LIABILITIES ASSUMED Deposits $ 1,668,085 $ 1,465 $ 1,669,550 Borrowings 139,150 (116 ) 139,034 Other Liabilities 8,059 293 8,352 Total liabilities assumed 1,815,294 1,642 1,816,936 Excess of assets acquired over liabilities assumed $ 188,341 $ 9,545 197,886 Consideration paid 467,439 Goodwill recognized $ 269,553 |
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 Grandpoint, Plaza and HEOP, the contractual amounts due, expected cash flows to be collected, interest component and fair value as of their respective acquisition dates were as follows: Acquired Loans Grandpoint Plaza HEOP (dollars in thousands) Contractual amounts due $ 3,496,905 $ 1,708,685 $ 1,717,191 Cash flows not expected to be collected 39,230 20,152 4,442 Expected cash flows 3,457,675 1,688,533 1,712,749 Interest component of expected cash flows 1,105,287 625,632 348,061 Fair value of acquired loans $ 2,352,388 $ 1,062,901 $ 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 Nine Months Ended September 30, June 30, September 30, September 30, 2018 2018 2017 2018 2017 (dollars in thousands) Net interest and other income $ 118,276 $ 117,652 $ 118,364 $ 352,546 $ 326,968 Net income 28,392 28,835 32,897 93,922 76,913 Basic earnings per share 0.46 0.47 0.53 1.52 1.25 Diluted earnings per share 0.46 0.46 0.53 1.50 1.24 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, 2018 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: U.S. Treasury $ 59,659 $ 13 $ (329 ) $ 59,343 Agency 113,628 20 (877 ) 112,771 Corporate 102,761 235 (1,402 ) 101,594 Municipal bonds 234,910 584 (4,293 ) 231,201 Collateralized mortgage obligation: residential 25,897 50 (741 ) 25,206 Mortgage-backed securities: residential 541,660 33 (16,931 ) 524,762 Total investment securities available-for-sale 1,078,515 935 (24,573 ) 1,054,877 Investment securities held-to-maturity: Mortgage-backed securities: residential 45,287 22 (1,269 ) 44,040 Other 1,098 — — 1,098 Total investment securities held-to-maturity 46,385 22 (1,269 ) 45,138 Total investment securities $ 1,124,900 $ 957 $ (25,842 ) $ 1,100,015 December 31, 2017 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (dollars in thousands) Investment securities available-for-sale: Agency $ 47,051 $ 236 $ (78 ) $ 47,209 Corporate 78,155 1,585 (194 ) 79,546 Municipal bonds 228,929 3,942 (743 ) 232,128 Collateralized mortgage obligation: residential 33,984 132 (335 ) 33,781 Mortgage-backed securities: residential 398,664 266 (4,165 ) 394,765 Total investment securities available-for-sale 786,783 6,161 (5,515 ) 787,429 Investment securities held-to-maturity: Mortgage-backed securities: residential 17,153 — (209 ) 16,944 Other 1,138 — — 1,138 Total investment securities held-to-maturity 18,291 — (209 ) 18,082 Total investment securities $ 805,074 $ 6,161 $ (5,724 ) $ 805,511 |
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. September 30, 2018 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: U.S. Treasury 5 $ 39,925 $ (329 ) — $ — $ — 5 $ 39,925 $ (329 ) Agency 28 90,499 (859 ) 1 1,121 (18 ) 29 91,620 (877 ) Corporate 17 61,221 (1,076 ) 4 8,942 (326 ) 21 70,163 (1,402 ) Municipal bonds 173 150,294 (2,817 ) 42 22,161 (1,476 ) 215 172,455 (4,293 ) Collateralized mortgage obligation: residential 2 3,023 (54 ) 7 16,537 (687 ) 9 19,560 (741 ) Mortgage-backed securities: residential 85 323,466 (7,531 ) 79 195,039 (9,400 ) 164 518,505 (16,931 ) Total investment securities available-for-sale 310 668,428 (12,666 ) 133 243,800 (11,907 ) 443 912,228 (24,573 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 13 33,318 (949 ) 1 5,849 (320 ) 14 39,167 (1,269 ) Total investment securities held-to-maturity 13 33,318 (949 ) 1 5,849 (320 ) 14 39,167 (1,269 ) Total investment securities 323 $ 701,746 $ (13,615 ) 134 $ 249,649 $ (12,227 ) 457 $ 951,395 $ (25,842 ) December 31, 2017 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: Agency 6 $ 13,754 $ (78 ) — $ — $ — 6 $ 13,754 $ (78 ) Corporate 4 10,079 (64 ) 2 6,076 (130 ) 6 16,155 (194 ) Municipal bonds 103 61,313 (268 ) 30 15,658 (475 ) 133 76,971 (743 ) Collateralized mortgage obligation: residential 5 13,971 (149 ) 3 8,943 (186 ) 8 22,914 (335 ) Mortgage-backed securities: residential 66 220,951 (1,600 ) 41 110,062 (2,565 ) 107 331,013 (4,165 ) Total investment securities available-for-sale 184 320,068 (2,159 ) 76 140,739 (3,356 ) 260 460,807 (5,515 ) Investment securities held-to-maturity: Mortgage-backed securities: residential 2 10,745 (133 ) 1 6,198 (76 ) 3 16,943 (209 ) Total investment securities held-to-maturity 2 10,745 (133 ) 1 6,198 (76 ) 3 16,943 (209 ) Total investment securities 186 $ 330,813 $ (2,292 ) 77 $ 146,937 $ (3,432 ) 263 $ 477,750 $ (5,724 ) |
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 September 30, 2018 , 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: U.S. Treasury $ — $ — $ 10,401 $ 10,403 $ 49,258 $ 48,940 $ — $ — $ 59,659 $ 59,343 Agency 10,977 10,977 12,111 12,125 68,902 68,379 21,638 21,290 113,628 112,771 Corporate — — — — 102,761 101,594 — — 102,761 101,594 Municipal bonds 3,017 3,013 31,511 31,334 70,926 69,156 129,456 127,698 234,910 231,201 Collateralized mortgage obligation: residential — — — — 872 871 25,025 24,335 25,897 25,206 Mortgage-backed securities: residential — — 1,793 1,727 141,006 137,770 398,861 385,265 541,660 524,762 Total investment securities available-for-sale 13,994 13,990 55,816 55,589 433,725 426,710 574,980 558,588 1,078,515 1,054,877 Investment securities held-to-maturity: Mortgage-backed securities: residential — — — — 933 932 44,354 43,108 45,287 44,040 Other — — — — — — 1,098 1,098 1,098 1,098 Total investment securities held-to-maturity — — — — 933 932 45,452 44,206 46,385 45,138 Total investment securities $ 13,994 $ 13,990 $ 55,816 $ 55,589 $ 434,658 $ 427,642 $ 620,432 $ 602,794 $ 1,124,900 $ 1,100,015 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, 2018 December 31, 2017 (dollars in thousands) Business loans Commercial and industrial $ 1,359,841 $ 1,086,659 Franchise 735,366 660,414 Commercial owner occupied (1) 1,675,528 1,289,213 SBA 193,487 185,514 Agribusiness 133,241 116,066 Total business loans 4,097,463 3,337,866 Real estate loans Commercial non-owner occupied 1,931,165 1,243,115 Multi-family 1,554,692 794,384 One-to-four family (2) 376,617 270,894 Construction 504,708 282,811 Farmland 138,479 145,393 Land 49,992 31,233 Total real estate loans 4,555,653 2,767,830 Consumer loans Consumer loans 114,736 92,931 Gross loans held for investment (3) 8,767,852 6,198,627 Deferred loan origination costs/(fees) and premiums/(discounts), net (8,648 ) (2,403 ) Loans held for investment 8,759,204 6,196,224 Allowance for loan losses (33,306 ) (28,936 ) Loans held for investment, net $ 8,725,898 $ 6,167,288 Loans held for sale, at lower of cost or fair value $ 52,880 $ 23,426 ______________________________ (1) Secured by real estate. (2) Includes second trust deeds. (3) Total gross loans held for investment for September 30, 2018 and December 31, 2017 are net of the unaccreted fair value net purchase discounts of $71.7 million and $29.1 million , respectively. |
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 September 30, 2018 (dollars in thousands) Business loans Commercial and industrial $ 1,325,912 $ 14,380 $ 19,549 $ — $ 1,359,841 Franchise 735,157 — 209 — 735,366 Commercial owner occupied 1,690,912 1,348 24,890 — 1,717,150 SBA 195,527 1,810 5,892 — 203,229 Agribusiness 126,695 — 6,546 — 133,241 Real estate loans Commercial non-owner occupied 1,924,416 163 8,102 — 1,932,681 Multi-family 1,553,437 — 1,255 — 1,554,692 One-to-four family 368,270 1,066 7,281 — 376,617 Construction 504,708 — — — 504,708 Farmland 138,356 — 123 — 138,479 Land 49,292 — 700 — 49,992 Consumer loans Consumer loans 114,598 5 133 — 114,736 Totals $ 8,727,280 $ 18,772 $ 74,680 $ — $ 8,820,732 Credit Risk Grades Pass Special Substandard Doubtful Total Gross December 31, 2017 (dollars in thousands) Business loans Commercial and industrial $ 1,063,452 $ 8,163 $ 15,044 $ — $ 1,086,659 Franchise 660,414 — — — 660,414 Commercial owner occupied 1,273,381 654 21,180 — 1,295,215 SBA 199,468 1 3,469 — 202,938 Agribusiness 108,143 4,079 3,844 — 116,066 Real estate loans Commercial non-owner occupied 1,242,045 — 1,070 — 1,243,115 Multi-family 794,156 — 228 — 794,384 One-to-four family 268,776 154 1,964 — 270,894 Construction 282,294 517 — — 282,811 Farmland 144,234 44 1,115 — 145,393 Land 30,979 — 254 — 31,233 Consumer loans Consumer loans 92,794 — 137 — 92,931 Totals $ 6,160,136 $ 13,612 $ 48,305 $ — $ 6,222,053 |
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 Current 30-59 60-89 90+ Total Gross Loans Non-accruing September 30, 2018 (dollars in thousands) Business loans Commercial and industrial $ 1,358,766 $ 334 $ 636 $ 105 $ 1,359,841 $ 1,027 Franchise 735,157 — — 209 735,366 209 Commercial owner occupied 1,716,146 793 — 211 1,717,150 — SBA 200,596 4 — 2,629 203,229 2,748 Agribusiness 133,241 — — — 133,241 — Real estate loans Commercial non-owner occupied 1,931,391 — — 1,290 1,932,681 1,290 Multi-family 1,554,103 — — 589 1,554,692 589 One-to-four family 375,694 836 76 11 376,617 1,388 Construction 504,708 — — — 504,708 — Farmland 138,479 — — — 138,479 — Land 49,988 — — 4 49,992 4 Consumer loans Consumer loans 114,718 10 8 — 114,736 13 Totals $ 8,812,987 $ 1,977 $ 720 $ 5,048 $ 8,820,732 $ 7,268 Days Past Due Current 30-59 60-89 90+ Total Gross Loans Non-accruing December 31, 2017 (dollars in thousands) Business loans Commercial and industrial $ 1,085,770 $ 84 $ 570 $ 235 $ 1,086,659 $ 1,160 Franchise 660,414 — — — 660,414 — Commercial owner occupied 1,291,255 3,474 486 — 1,295,215 97 SBA 200,821 177 — 1,940 202,938 1,201 Agribusiness 116,066 — — — 116,066 — Real estate loans Commercial non-owner occupied 1,243,115 — — — 1,243,115 — Multi-family 792,603 1,781 — — 794,384 — One-to-four family 269,725 354 — 815 270,894 817 Construction 282,811 — — — 282,811 — Farmland 145,393 — — — 145,393 — Land 31,141 83 — 9 31,233 9 Consumer loans Consumer loans 92,880 11 — 40 92,931 — Totals $ 6,211,994 $ 5,964 $ 1,056 $ 3,039 $ 6,222,053 $ 3,284 |
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 Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans (dollars in thousands) September 30, 2018 Business loans Commercial and industrial $ 1,515 $ 1,027 $ — $ 1,027 $ — Franchise 205 209 — 209 — SBA 7,618 2,748 488 2,260 250 Real estate loans Commercial non-owner occupied 1,287 1,290 — 1,290 — Multi-family 589 589 — 589 — One-to-four family 1,476 1,388 — 1,388 — Land 34 4 — 4 — Consumer loans Consumer loans 15 13 — 13 — Totals $ 12,739 $ 7,268 $ 488 $ 6,780 $ 250 Impaired Loans Unpaid Principal Balance Recorded Investment With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans (dollars in thousands) December 31, 2017 Business loans Commercial and industrial $ 1,585 $ 1,160 $ — $ 1,160 $ — Commercial owner occupied 98 97 97 — 55 SBA 4,329 1,201 — 1,201 — Real estate loans One-to-four family 849 817 — 817 — Land 35 9 — 9 — Totals $ 6,896 $ 3,284 $ 97 $ 3,187 $ 55 Impaired Loans Three Months Ended September 30, 2018 June 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) (dollars in thousands) Business loans Commercial and industrial $ 1,030 $ — $ 1,272 $ — $ 446 $ 7 Franchise 209 — 70 — — — Commercial owner occupied — — 2,317 — 170 3 SBA 1,914 — 1,360 — 85 2 Real estate loans Commercial non-owner occupied 1,290 — 430 — 342 7 Multi-family 589 — 589 — — — One-to-four family 1,406 — 1,343 — 103 3 Land 5 — 6 — 11 — Consumer loans Consumer loans 13 $ — 15 — — — Totals $ 6,456 $ — $ 7,402 $ — $ 1,157 $ 22 (1) Cash basis and accrual basis is materially the same. Impaired Loans Nine Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) (dollars in thousands) Business loans: Commercial and industrial $ 1,161 $ — $ 218 $ 12 Franchise 93 — — — Commercial owner occupied 1,931 — 162 8 SBA 1,505 — 204 10 Real estate loans: Commercial non-owner occupied 573 — 114 7 Multi-family 666 — — — One-to-four family 1,258 — 108 9 Land 6 — 13 1 Consumer loans: Consumer loans 41 — — — Totals $ 7,234 $ — $ 819 $ 47 (1) Cash basis and accrual basis is materially the same. |
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: September 30, 2018 December 31, 2017 (dollars in thousands) Nonaccruing loans $ 7,268 $ 3,284 Accruing loans — — Total impaired loans $ 7,268 $ 3,284 |
Summary of Company's investment in purchased credit impaired loans | The Company has purchased loans that have experienced deterioration of credit quality between origination and acquisition and for which it was probable, at acquisition, that not all contractually required payments would be collected. The carrying amount of those loans is as follows: September 30, 2018 December 31, 2017 (dollars in thousands) Business loans Commercial and industrial $ 1,700 $ 3,310 Commercial owner occupied 2,808 1,262 SBA 1,304 1,802 Real estate loans Commercial non-owner occupied 1,077 1,650 One-to-four family 909 255 Construction — 517 Land 76 83 Consumer loans 8 10 Total purchase credit impaired $ 7,882 $ 8,889 |
Summary of accretable yield on purchased credit impaired | The following table summarizes the accretable yield on the purchased credit impaired loans for the three and nine month periods indicated. Three Months Ended Nine Months Ended September 30, June 30, September 30, June 30, 2018 2018 2017 2018 2017 (dollars in thousands) Balance at the beginning of period $ 1,473 $ 1,709 $ 3,497 $ 3,019 $ 3,747 Additions 483 — — 483 2,036 Accretion (162 ) (270 ) (388 ) (668 ) (1,729 ) Payoffs (1 ) 32 39 (1,819 ) 39 Reclassification from (to) nonaccretable difference 195 2 — 973 (945 ) Balance at the end of period $ 1,988 $ 1,473 $ 3,148 $ 1,988 $ 3,148 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 nine months ended for the periods indicated: Three Months Ended September 30, 2018 Commercial and industrial Franchise Commercial owner occupied SBA Agribusiness Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Consumer loans Total (dollars in thousands) Balance, June 30, 2018 $ 10,164 $ 6,181 $ 1,137 $ 2,575 $ 2,694 $ 1,450 $ 563 $ 698 $ 4,809 405 $ 972 $ 99 $ 31,747 Charge-offs (100 ) — — (44 ) — — — — — — — (85 ) (229 ) Recoveries 120 — 8 8 — — — — — — — 6 142 Provisions for (reduction in) loan losses 200 151 68 288 871 33 60 21 11 (30 ) (104 ) 77 1,646 Balance, September 30, 2018 $ 10,384 $ 6,332 $ 1,213 $ 2,827 $ 3,565 $ 1,483 $ 623 $ 719 $ 4,820 $ 375 $ 868 $ 97 $ 33,306 Three Months Ended September 30, 2017 Commercial and industrial Franchise Commercial owner occupied SBA Agribusiness Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Consumer loans Total (dollars in thousands) Balance, June 30, 2017 $ 7,644 $ 5,367 $ 672 $ 2,519 $ 206 $ 1,204 $ 611 $ 724 $ 5,036 28 $ 959 $ 85 $ 25,055 Charge-offs (32 ) — — — — — — — — — — — (32 ) Recoveries 15 — 12 42 — — — 2 — — — — 71 Provisions for (reduction in) loan losses 682 452 131 409 (37 ) 116 47 120 104 64 (15 ) (24 ) 2,049 Balance, September 30, 2017 $ 8,309 $ 5,819 $ 815 $ 2,970 $ 169 $ 1,320 $ 658 $ 846 $ 5,140 $ 92 $ 944 $ 61 $ 27,143 Nine Months Ended September 30, 2018 Commercial and industrial Franchise Commercial owner occupied SBA Agribusiness Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Consumer loans Total (dollars in thousands) Balance, December 31, 2017 $ 9,721 $ 5,797 $ 767 $ 2,890 $ 1,291 $ 1,266 $ 607 $ 803 $ 4,569 $ 137 $ 993 $ 95 $ 28,936 Charge-offs (1,011 ) — — (100 ) — — — — — — — (137 ) (1,248 ) Recoveries 283 — 32 43 — — — 1 — — — 7 366 Provisions for (reduction in) loan losses 1,391 535 414 (6 ) 2,274 217 16 (85 ) 251 238 (125 ) 132 5,252 Balance, September 30, 2018 $ 10,384 $ 6,332 $ 1,213 $ 2,827 $ 3,565 $ 1,483 $ 623 $ 719 $ 4,820 $ 375 $ 868 $ 97 $ 33,306 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ 250 $ — $ — $ — $ — $ — $ — $ — $ — $ 250 General portfolio allocation 10,384 6,332 1,213 2,577 3,565 1,483 623 719 4,820 375 868 97 33,056 Loans individually evaluated for impairment 1,027 209 — 2,748 — 1,290 589 1,388 — — 4 13 7,268 Specific reserves to total loans individually evaluated for impairment — % — % — % 9.10 % — % — % — % — % — % — % — % — % 3.44 % Loans collectively evaluated for impairment $ 1,358,814 $ 735,157 $ 1,675,528 $ 190,739 $ 133,241 $ 1,929,875 $ 1,554,103 $ 375,229 $ 504,708 $ 138,479 $ 49,988 $ 114,723 $ 8,760,584 General reserves to total loans collectively evaluated for impairment 0.76 % 0.86 % 0.07 % 1.35 % 2.68 % 0.08 % 0.04 % 0.19 % 0.96 % 0.27 % 1.74 % 0.08 % 0.38 % Total gross loans held for investment $ 1,359,841 $ 735,366 $ 1,675,528 $ 193,487 $ 133,241 $ 1,931,165 $ 1,554,692 $ 376,617 $ 504,708 $ 138,479 $ 49,992 $ 114,736 $ 8,767,852 Total allowance to gross loans held for investment 0.76 % 0.86 % 0.07 % 1.46 % 2.68 % 0.08 % 0.04 % 0.19 % 0.96 % 0.27 % 1.74 % 0.08 % 0.38 % Nine Months Ended September 30, 2017 Commercial and industrial Franchise Commercial owner occupied SBA Agribusiness Commercial non-owner occupied Multi-family One-to-four family Construction Farmland Land Consumer 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 (894 ) — — (8 ) — — — — — — — — (902 ) Recoveries 70 — 94 125 — — — 4 — — — 1 294 Provisions for (reduction in) loan losses 2,771 1,974 (472 ) 1,814 169 (395 ) (2,269 ) 477 1,508 92 746 40 6,455 Balance, September 30, 2017 $ 8,309 $ 5,819 $ 815 $ 2,970 $ 169 $ 1,320 $ 658 $ 846 $ 5,140 $ 92 $ 944 $ 61 $ 27,143 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ — $ — $ — — $ — $ — $ — General portfolio allocation 8,309 5,819 815 2,970 169 1,320 658 846 5,140 92 944 61 27,143 Loans individually evaluated for impairment 228 — 83 90 — — — 103 11 — — — 515 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % — % — % — % — — % — % — % Loans collectively evaluated for impairment $ 762,863 $ 626,508 $ 805,054 $ 107,121 $ 86,466 $ 1,098,995 $ 797,370 $ 246,145 $ 301,323 140,581 $ 30,719 $ 6,228 $ 5,009,373 General reserves to total loans collectively evaluated for impairment 1.09 % 0.93 % 0.10 % 2.77 % 0.20 % 0.12 % 0.08 % 0.34 % 1.71 % 0.07 % 3.07 % 0.98 % 0.54 % Total gross loans held for investment $ 763,091 $ 626,508 $ 805,137 $ 107,211 $ 86,466 $ 1,098,995 $ 797,370 $ 246,248 $ 301,334 140,581 $ 30,719 $ 6,228 $ 5,009,888 Total allowance to gross loans held for investment 1.09 % 0.93 % 0.10 % 2.77 % 0.20 % 0.12 % 0.08 % 0.34 % 1.71 % 0.07 % 3.07 % 0.98 % 0.54 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 Nine Months Ended September 30, June 30, September 30, September 30, 2018 2018 2017 2018 2017 Weighted average stock options excluded — — 10,036 7,530 12,192 |
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 September 30, 2018 June 30, 2018 September 30, 2017 Net Shares Per Share Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 28,392 $ 27,303 $ 20,232 Basic income available to common stockholders 28,392 61,727,030 $ 0.46 27,303 46,053,077 $ 0.59 20,232 39,709,565 $ 0.51 Dilutive effect of share-based compensation — 634,774 — 649,891 — 776,549 Diluted income available to common stockholders plus assumed conversions $ 28,392 62,361,804 $ 0.46 $ 27,303 46,702,968 $ 0.58 $ 20,232 40,486,114 $ 0.50 Nine Months Ended September 30, 2018 2017 Net Shares Per Share Net Shares Per Share (dollars in thousands, except per share data) Net income $ 83,697 $ 43,929 Basic income available to common stockholders 83,697 51,282,533 $ 1.63 43,929 35,652,626 $ 1.23 Effect of dilutive stock options and warrants 683,114 803,319 Diluted income available to common stockholders plus assumed conversions $ 83,697 51,965,647 $ 1.61 $ 43,929 36,455,945 $ 1.20 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 dates indicated, representing an exit price. At September 30, 2018 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 263,212 $ 263,212 $ — $ — $ 263,212 Interest-bearing time deposits with financial institutions 6,386 6,386 — — 6,386 Investments held-to-maturity 46,385 — 45,138 — 45,138 Investment securities available-for-sale 1,054,877 — 1,054,877 — 1,054,877 FHLB, FRB and other stock 112,649 N/A N/A N/A N/A Loans held for sale 52,880 — 52,880 — 52,880 Loans held for investment, net 8,759,204 — — 8,694,408 8,694,408 Derivative asset 3,858 — 3,272 — 3,272 Accrued interest receivable 37,683 37,683 — — 37,683 Liabilities: Deposit accounts 8,502,145 7,193,880 1,310,444 — 8,504,324 FHLB advances 859,622 — 859,622 — 859,622 Other borrowings 2,350 — 2,350 — 2,350 Subordinated debentures 110,244 — 122,177 — 122,177 Derivative liability 3,858 — 3,272 — 3,272 Accrued interest payable 3,303 3,303 — — 3,303 At December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (dollars in thousands) Assets: Cash and cash equivalents $ 197,164 $ 197,164 $ — $ — $ 197,164 Interest-bearing time deposits with financial institutions 6,633 6,633 — — 6,633 Investments held-to-maturity 18,291 — 18,082 — 18,082 Investment securities available-for-sale 787,429 — 787,429 — 787,429 FHLB, FRB and other stock 65,881 N/A N/A N/A N/A Loans held for sale 23,426 — 23,524 — 23,524 Loans held for investment, net (1) 6,167,288 — — 6,269,366 6,269,366 Derivative asset 1,135 — 1,135 — $ 1,135 Accrued interest receivable 27,060 27,060 — — 27,060 Liabilities: Deposit accounts 6,085,886 5,001,053 1,074,564 — 6,075,617 FHLB advances 490,148 — 489,823 — 489,823 Other borrowings 46,139 — 46,373 — 46,373 Subordinated debentures 105,123 — 115,159 — 115,159 Derivative liability 1,135 — 1,135 — 1,135 Accrued interest payable 2,131 2,131 — — 2,131 (1) The estimated fair value of loans held for investment, net for December 31, 2017 is not based on an exit price assumption. |
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: September 30, 2018 Fair Value Measurement Using Level 1 Level 2 Level 3 Total Fair Value (dollars in thousands) Financial assets Investment securities available-for-sale: U.S. Treasury $ — $ 59,343 $ — $ 59,343 Agency — 112,771 — 112,771 Corporate — 101,594 — 101,594 Municipal bonds — 231,201 — 231,201 Collateralized mortgage obligation — 25,206 — 25,206 Mortgage-backed securities — 524,762 — 524,762 Total securities available-for-sale $ — $ 1,054,877 $ — $ 1,054,877 Derivative assets $ — $ 3,858 $ — $ 3,858 Financial liabilities Derivative liabilities $ — $ 3,858 $ — $ 3,858 December 31, 2017 Fair Value Measurement Using Level 1 Level 2 Level 3 Total Fair Value (dollars in thousands) Financial assets Investment securities available-for-sale: Agency $ — $ 47,209 $ — $ 47,209 Corporate — 79,546 — 79,546 Municipal bonds — 232,128 — 232,128 Collateralized mortgage obligation — 33,781 — 33,781 Mortgage-backed securities — 394,765 — 394,765 Total securities available-for-sale $ — $ 787,429 $ — $ 787,429 Derivative assets $ — $ 1,135 $ — $ 1,135 Financial liabilities Derivative liabilities $ — $ 1,135 $ — $ 1,135 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize the Company's derivative instruments, included in "other assets" and "other liabilities" in the consolidated statements of financial condition: September 30, 2018 Derivative Assets Derivative Liabilities Notional Fair Value Notional Fair Value (dollars in thousands) Derivative instruments not designated as hedging instruments: Interest rate swap contracts $ 61,642 $ 3,858 $ 61,642 $ 3,858 Total derivative instruments $ 61,642 $ 3,858 $ 61,642 $ 3,858 December 31, 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 $ 58,599 $ 1,135 $ 58,599 $ 1,135 Total derivative instruments $ 58,599 $ 1,135 $ 58,599 $ 1,135 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Financial instruments that are eligible for offset in the consolidated statements of financial condition as of September 30, 2018 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) September 30, 2018 Financial assets: Derivatives not designated as $ 3,917 $ (59 ) $ 3,858 $ — $ — $ 3,858 Total $ 3,917 $ (59 ) $ 3,858 $ — $ — $ 3,858 Financial liabilities: Derivatives not designated as $ 3,858 $ — $ 3,858 $ — $ — $ 3,858 Total $ 3,858 $ — $ 3,858 $ — $ — $ 3,858 (1) Represents cash collateral held with counterparty bank. Financial instruments that are eligible for offset in the consolidated statements of financial condition as of December 31, 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) December 31, 2017 Financial assets: Derivatives not designated as $ 1,833 $ (698 ) $ 1,135 $ — $ — $ 1,135 Total $ 1,833 $ (698 ) $ 1,135 $ — $ — $ 1,135 Financial liabilities: Derivatives not designated as $ 1,135 $ — $ 1,135 $ — $ — $ 1,135 Total $ 1,135 $ — $ 1,135 $ — $ — $ 1,135 (1) Represents cash collateral held with counterparty bank. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Company's Revenue Streams | The following tables provide a summary of the Company’s revenue streams, including those that are within the scope of ASC 606 and those that are accounted for under other applicable U.S. GAAP: Three Months Ended September 30, 2018 June 30, 2018 September 30, 2017 Within Scope (1) Out of Scope (2) Within Scope (1) Out of Scope (2) Within Scope (1) Out of Scope (2) (dollars in thousands) Interest income: Loans $ — $ 119,271 $ — $ 85,625 $ — $ 64,915 Investment securities and other interest-earning assets — 9,605 — 7,074 — 5,246 Total interest income — 128,876 — 92,699 — 70,161 Noninterest income: Loan servicing fees — 400 — 292 — 276 Service charges on deposit accounts 874 — 1,057 — 946 — Other service fee income 317 — 169 — 851 — Debit card interchange income 1,061 — 1,090 — 248 — Earnings on bank-owned life insurance — 1,270 — 617 — 629 Net gain from sales of loans — 2,029 — 3,843 — 3,439 Net gain from sales of investment securities — 1,063 — 330 — 896 Other income (446 ) 976 293 460 163 773 Total noninterest income 1,806 5,738 2,609 5,542 2,208 6,013 Total revenues $ 1,806 $ 134,614 $ 2,609 $ 98,241 $ 2,208 $ 76,174 ______________________________ (1) Revenues from contracts with customers accounted for under ASC 606. (2) Revenues not within the scope of ASC 606 and accounted for under other applicable U.S. GAAP requirements. Nine Months Ended September 30, 2018 2017 Within Scope (1) Out of Scope (2) Within Scope (1) Out of Scope (2) (dollars in thousands) Interest income: Loans $ — $ 289,069 $ — $ 170,905 Investment securities and other interest-earning assets — 23,333 — 13,416 Total interest income — 312,402 — 184,321 Noninterest income: Loan servicing fees — 1,037 — 641 Service charges on deposit accounts 3,081 — 2,153 — Other service fee income 632 — 1,725 — Debit card interchange income 3,187 — 994 — Earnings on bank-owned life insurance — 2,498 — 1,654 Net gain from sales of loans — 8,830 — 9,137 Net gain from sales of investment securities — 1,399 — 2,989 Other income 84 2,613 301 2,069 Total noninterest income 6,984 16,377 5,173 16,490 Total revenues $ 6,984 $ 328,779 $ 5,173 $ 200,811 ______________________________ (1) Revenues from contracts with customers accounted for under ASC 606. (2) Revenues not within the scope of ASC 606 and accounted for under other applicable U.S. GAAP requirements. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2018 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of certain tax effects of the Tax Cuts and Jobs Act | $ 0 | |
Accumulated Other Comprehensive (Loss) Income | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of certain tax effects of the Tax Cuts and Jobs Act | 82 | |
Accumulated Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of certain tax effects of the Tax Cuts and Jobs Act | (82) | |
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive (Loss) Income | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of certain tax effects of the Tax Cuts and Jobs Act | $ 82 | |
Accounting Standards Update 2018-02 | Accumulated Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of certain tax effects of the Tax Cuts and Jobs Act | $ (82) | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Expected assets and liabilities recognized under new lease standard, as a percentage of total assets | 1.00% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - Core Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Weighted average useful life (in years) | 6 years |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Weighted average useful life (in years) | 10 years |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands | Jul. 01, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Apr. 01, 2017USD ($)shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)$ / shares | Nov. 01, 2017USD ($) | Mar. 31, 2017$ / shares |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 493,329 | $ 493,329 | $ 807,892 | $ 493,329 | |||||
Adjustment to deferred tax assets and the deal consideration | $ 1,100 | ||||||||
Grandpoint Capital, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Total assets acquired | $ 3,051,567 | 3,075,644 | |||||||
Gross loans acquired | 2,400,000 | ||||||||
Total deposits acquired | $ 2,506,663 | 2,506,929 | |||||||
Equity issued, ratio | 0.4750 | ||||||||
Consideration paid | $ 629,000 | 601,172 | |||||||
Aggregate cash consideration payable | $ 28,100 | ||||||||
Company's common stock value (usd per share) | $ / shares | $ 38.15 | ||||||||
Goodwill | $ 312,000 | $ 312,239 | |||||||
Grandpoint Capital, Inc. | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Common stock issued as consideration (in shares) | shares | 15,758,039 | ||||||||
Plaza Bancorp | |||||||||
Business Acquisition [Line Items] | |||||||||
Total assets acquired | 1,255,740 | 1,255,740 | 1,255,740 | $ 1,245,740 | |||||
Gross loans acquired | 1,100,000 | 1,100,000 | 1,100,000 | ||||||
Total deposits acquired | $ 1,082,951 | $ 1,082,951 | $ 1,082,951 | $ 1,081,727 | |||||
Equity issued, ratio | 0.2000 | 0.2000 | 0.2000 | ||||||
Consideration paid | $ 246,000 | $ 245,761 | |||||||
Aggregate cash consideration payable | $ 6,500 | $ 6,500 | $ 6,500 | ||||||
Company's common stock value (usd per share) | $ / shares | $ 40.40 | $ 40.40 | $ 40.40 | ||||||
Goodwill | $ 122,629 | $ 122,629 | $ 122,629 | ||||||
Adjustments to core deposit intangibles, deferred tax assets, loans and other assets and liabilities | 1,300 | ||||||||
Plaza Bancorp | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Common stock issued as consideration (in shares) | shares | 6,049,373 | ||||||||
Heritage Oaks Bancorp | |||||||||
Business Acquisition [Line Items] | |||||||||
Total assets acquired | $ 2,014,822 | $ 2,003,635 | 2,014,822 | 2,014,822 | |||||
Gross loans acquired | 1,400,000 | ||||||||
Total deposits acquired | 1,669,550 | $ 1,668,085 | 1,669,550 | 1,669,550 | |||||
Equity issued, ratio | 0.3471 | ||||||||
Consideration paid | $ 467,000 | 467,439 | |||||||
Aggregate cash consideration payable | 3,900 | ||||||||
Company's common stock value (usd per share) | $ / shares | $ 38.55 | ||||||||
Goodwill | $ 269,553 | $ 270,000 | $ 269,553 | $ 269,553 | |||||
Heritage Oaks Bancorp | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Common stock issued as consideration (in shares) | shares | 11,959,022 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed - Schedule (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | Apr. 01, 2017 | Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Nov. 01, 2017 |
LIABILITIES ASSUMED | |||||||
Goodwill recognized | $ 493,329 | $ 493,329 | $ 807,892 | $ 493,329 | |||
Grandpoint Capital, Inc. | |||||||
ASSETS ACQUIRED | |||||||
Cash and cash equivalents | $ 147,551 | 147,551 | |||||
Investment securities | 395,905 | 392,858 | |||||
Loans, gross | 2,404,042 | 2,352,388 | |||||
Allowance for loan losses | (18,665) | 0 | |||||
Fixed assets | 6,015 | 9,122 | |||||
Core deposit intangible | 5,093 | 71,943 | |||||
Deferred tax assets | 14,185 | 4,536 | |||||
Other assets | 97,441 | 97,246 | |||||
Total assets acquired | 3,051,567 | 3,075,644 | |||||
LIABILITIES ASSUMED | |||||||
Deposits | 2,506,663 | 2,506,929 | |||||
Borrowings | 255,155 | 254,923 | |||||
Other Liabilities | 23,687 | 24,859 | |||||
Total liabilities assumed | 2,785,505 | 2,786,711 | |||||
Excess of assets acquired over liabilities assumed | 266,062 | 288,933 | |||||
Consideration paid | 629,000 | 601,172 | |||||
Goodwill recognized | $ 312,000 | 312,239 | |||||
Fair Value Adjustments | |||||||
Cash and cash equivalents | 0 | ||||||
Investment securities | (3,047) | ||||||
Loans, gross | (51,654) | ||||||
Allowance for loan losses | 18,665 | ||||||
Fixed assets | 3,107 | ||||||
Core deposit intangible | 66,850 | ||||||
Deferred tax assets | (9,649) | ||||||
Other assets | (195) | ||||||
Total assets acquired | 24,077 | ||||||
Deposits | 266 | ||||||
Borrowings | (232) | ||||||
Other Liabilities | 1,172 | ||||||
Total liabilities assumed | 1,206 | ||||||
Excess of assets acquired over liabilities assumed | $ 22,871 | ||||||
Plaza Bancorp | |||||||
ASSETS ACQUIRED | |||||||
Cash and cash equivalents | 150,459 | 150,459 | 150,459 | $ 150,459 | |||
Loans, gross | 1,062,901 | 1,062,901 | 1,062,901 | 1,069,359 | |||
Allowance for loan losses | 0 | 0 | 0 | (13,009) | |||
Fixed assets | 7,195 | 7,195 | 7,195 | 7,389 | |||
Core deposit intangible | 10,773 | 10,773 | 10,773 | 198 | |||
Deferred tax assets | 5,506 | 5,506 | 5,506 | 11,849 | |||
Other assets | 18,906 | 18,906 | 18,906 | 19,495 | |||
Total assets acquired | 1,255,740 | 1,255,740 | 1,255,740 | 1,245,740 | |||
LIABILITIES ASSUMED | |||||||
Deposits | 1,082,951 | 1,082,951 | 1,082,951 | 1,081,727 | |||
Borrowings | 41,152 | 41,152 | 41,152 | 40,755 | |||
Other Liabilities | 8,505 | 8,505 | 8,505 | 8,956 | |||
Total liabilities assumed | 1,132,608 | 1,132,608 | 1,132,608 | 1,131,438 | |||
Excess of assets acquired over liabilities assumed | 123,132 | 123,132 | 123,132 | $ 114,302 | |||
Consideration paid | 246,000 | 245,761 | |||||
Goodwill recognized | 122,629 | 122,629 | 122,629 | ||||
Fair Value Adjustments | |||||||
Cash and cash equivalents | 0 | ||||||
Loans, gross | (6,458) | ||||||
Allowance for loan losses | 13,009 | ||||||
Fixed assets | (194) | ||||||
Core deposit intangible | 10,575 | ||||||
Deferred tax assets | (6,343) | ||||||
Other assets | (589) | ||||||
Total assets acquired | 10,000 | ||||||
Deposits | 1,224 | ||||||
Borrowings | 397 | ||||||
Other Liabilities | (451) | ||||||
Total liabilities assumed | 1,170 | ||||||
Excess of assets acquired over liabilities assumed | 8,830 | ||||||
Heritage Oaks Bancorp | |||||||
ASSETS ACQUIRED | |||||||
Cash and cash equivalents | 78,728 | $ 78,728 | 78,728 | 78,728 | |||
Investment securities | 442,923 | 445,299 | 442,923 | 442,923 | |||
Loans, gross | 1,364,688 | 1,384,949 | 1,364,688 | 1,364,688 | |||
Allowance for loan losses | 0 | (17,200) | 0 | 0 | |||
Fixed assets | 34,902 | 35,567 | 34,902 | 34,902 | |||
Core deposit intangible | 28,123 | 3,207 | 28,123 | 28,123 | |||
Deferred tax assets | 10,244 | 17,850 | 10,244 | 10,244 | |||
Other assets | 55,214 | 55,235 | 55,214 | 55,214 | |||
Total assets acquired | 2,014,822 | 2,003,635 | 2,014,822 | 2,014,822 | |||
LIABILITIES ASSUMED | |||||||
Deposits | 1,669,550 | 1,668,085 | 1,669,550 | 1,669,550 | |||
Borrowings | 139,034 | 139,150 | 139,034 | 139,034 | |||
Other Liabilities | 8,352 | 8,059 | 8,352 | 8,352 | |||
Total liabilities assumed | 1,816,936 | 1,815,294 | 1,816,936 | 1,816,936 | |||
Excess of assets acquired over liabilities assumed | 197,886 | 188,341 | 197,886 | 197,886 | |||
Consideration paid | 467,000 | 467,439 | |||||
Goodwill recognized | $ 269,553 | $ 270,000 | $ 269,553 | 269,553 | |||
Fair Value Adjustments | |||||||
Cash and cash equivalents | 0 | ||||||
Investment securities | (2,376) | ||||||
Loans, gross | (20,261) | ||||||
Allowance for loan losses | 17,200 | ||||||
Fixed assets | (665) | ||||||
Core deposit intangible | 24,916 | ||||||
Deferred tax assets | (7,606) | ||||||
Other assets | (21) | ||||||
Total assets acquired | 11,187 | ||||||
Deposits | 1,465 | ||||||
Borrowings | (116) | ||||||
Other Liabilities | 293 | ||||||
Total liabilities assumed | 1,642 | ||||||
Excess of assets acquired over liabilities assumed | $ 9,545 |
Acquisitions - Loan Information
Acquisitions - Loan Information (Details) - Acquired Loans - USD ($) $ in Thousands | Jul. 01, 2018 | Nov. 01, 2017 | Apr. 01, 2017 |
Grandpoint Capital, Inc. | |||
Business Acquisition [Line Items] | |||
Contractual amounts due | $ 3,496,905 | ||
Cash flows not expected to be collected | 39,230 | ||
Expected cash flows | 3,457,675 | ||
Interest component of expected cash flows | 1,105,287 | ||
Fair value of acquired loans | $ 2,352,388 | ||
Plaza Bancorp | |||
Business Acquisition [Line Items] | |||
Contractual amounts due | $ 1,708,685 | ||
Cash flows not expected to be collected | 20,152 | ||
Expected cash flows | 1,688,533 | ||
Interest component of expected cash flows | 625,632 | ||
Fair value of acquired loans | $ 1,062,901 | ||
Heritage Oaks Bancorp | |||
Business Acquisition [Line Items] | |||
Contractual amounts due | $ 1,717,191 | ||
Cash flows not expected to be collected | 4,442 | ||
Expected cash flows | 1,712,749 | ||
Interest component of expected cash flows | 348,061 | ||
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 | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Combinations [Abstract] | |||||
Net interest and other income | $ 118,276 | $ 117,652 | $ 118,364 | $ 352,546 | $ 326,968 |
Net income | $ 28,392 | $ 28,835 | $ 32,897 | $ 93,922 | $ 76,913 |
Basic earnings per share (in dollars per share) | $ 0.46 | $ 0.47 | $ 0.53 | $ 1.52 | $ 1.25 |
Diluted earnings per share (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.53 | $ 1.50 | $ 1.24 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available for sale: | ||
Total | $ 1,078,515 | $ 786,783 |
Unrealized Gain | 935 | 6,161 |
Unrealized Loss | (24,573) | (5,515) |
Estimated Fair Value | 1,054,877 | 787,429 |
Held to maturity: | ||
Amortized Cost | 46,385 | 18,291 |
Unrealized Gain | 22 | 0 |
Unrealized Loss | (1,269) | (209) |
Estimated Fair Value | 45,138 | 18,082 |
Total investment securities | ||
Amortized Cost | 1,124,900 | 805,074 |
Unrealized Gain | 957 | 6,161 |
Unrealized Loss | (25,842) | (5,724) |
Estimated Fair Value | 1,100,015 | 805,511 |
U.S. Treasury | ||
Available for sale: | ||
Total | 59,659 | |
Unrealized Gain | 13 | |
Unrealized Loss | (329) | |
Estimated Fair Value | 59,343 | |
Agency | ||
Available for sale: | ||
Total | 113,628 | 47,051 |
Unrealized Gain | 20 | 236 |
Unrealized Loss | (877) | (78) |
Estimated Fair Value | 112,771 | 47,209 |
Corporate | ||
Available for sale: | ||
Total | 102,761 | 78,155 |
Unrealized Gain | 235 | 1,585 |
Unrealized Loss | (1,402) | (194) |
Estimated Fair Value | 101,594 | 79,546 |
Municipal bonds | ||
Available for sale: | ||
Total | 234,910 | 228,929 |
Unrealized Gain | 584 | 3,942 |
Unrealized Loss | (4,293) | (743) |
Estimated Fair Value | 231,201 | 232,128 |
Collateralized mortgage obligation: residential | ||
Available for sale: | ||
Total | 25,897 | 33,984 |
Unrealized Gain | 50 | 132 |
Unrealized Loss | (741) | (335) |
Estimated Fair Value | 25,206 | 33,781 |
Mortgage-backed securities: residential | ||
Available for sale: | ||
Total | 541,660 | 398,664 |
Unrealized Gain | 33 | 266 |
Unrealized Loss | (16,931) | (4,165) |
Estimated Fair Value | 524,762 | 394,765 |
Held to maturity: | ||
Amortized Cost | 45,287 | 17,153 |
Unrealized Gain | 22 | 0 |
Unrealized Loss | (1,269) | (209) |
Estimated Fair Value | 44,040 | 16,944 |
Other | ||
Held to maturity: | ||
Amortized Cost | 1,098 | 1,138 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | $ 1,098 | $ 1,138 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)purchase_agreement | |
Investment Securities | |||||||
Accumulated other comprehensive income (loss) before tax amount | $ (23,600,000) | $ 646,000 | $ (23,600,000) | $ 646,000 | |||
Accumulated other comprehensive income, net of tax | (16,677,000) | 415,000 | (16,677,000) | $ 415,000 | |||
Number of inverse putable reverse repurchase of the Bank's secured by collateral | purchase_agreement | 3 | ||||||
Value of inverse putable reverse repurchases secured by collateral | 28,500,000 | $ 28,500,000 | |||||
Gross gains | 1,300,000 | $ 330,000 | $ 897,000 | 1,600,000 | $ 3,000,000 | ||
Gross losses | (208,000) | (1,000) | (208,000) | (51,000) | |||
Proceeds from sale or maturity of securities available for sale | 379,000,000 | 16,200,000 | 28,400,000 | 395,000,000 | 243,000,000 | ||
FHLB stock | 23,200,000 | 23,200,000 | |||||
FRB stock | 51,400,000 | 51,400,000 | |||||
Other stock | 38,000,000 | 38,000,000 | |||||
Amount of stock repurchased by FHLB | 15,000,000 | 0 | 5,000,000 | ||||
Other than temporary impairment losses | 0 | $ 0 | $ 0 | 0 | $ 0 | ||
Net loss on CRA equity investment | 600,000 | ||||||
HOA | |||||||
Investment Securities | |||||||
Value of inverse putable reverse repurchases secured by collateral | 2,300,000 | 17,600,000 | 2,300,000 | 17,600,000 | |||
Mortgage-backed securities: residential | |||||||
Investment Securities | |||||||
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 21,700,000 | 55,600,000 | 21,700,000 | 55,600,000 | |||
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $ 22,200,000 | $ 57,000,000 | $ 22,200,000 | $ 57,000,000 |
Investment Securities - Investm
Investment Securities - Investment Category and Length of Time (Details) $ in Thousands | Sep. 30, 2018USD ($)investment_security | Dec. 31, 2017USD ($)investment_security |
Less than 12 Months | ||
Number | investment_security | 310 | 184 |
Fair Value | $ 668,428 | $ 320,068 |
Gross Unrealized Holding Losses | $ (12,666) | $ (2,159) |
12 Months or Longer | ||
Number | investment_security | 133 | 76 |
Fair Value | $ 243,800 | $ 140,739 |
Gross Unrealized Holding Losses | $ (11,907) | $ (3,356) |
Total | ||
Number | investment_security | 443 | 260 |
Fair Value | $ 912,228 | $ 460,807 |
Gross Unrealized Holding Losses | $ (24,573) | $ (5,515) |
Held-to-maturity, less than 12 months, number of securities | investment_security | 13 | 2 |
Held-to-maturity, less than 12 months, fair value | $ 33,318 | $ 10,745 |
Held-to-maturity, less than 12 months, gross unrealized holding losses | $ (949) | $ (133) |
Held-to-maturity, 12 months or longer, number of securities | investment_security | 1 | 1 |
Held-to-maturity, 12 months or longer, fair value | $ 5,849 | $ 6,198 |
Held-to-maturity, 12 months or longer, gross unrealized holding losses | $ (320) | $ (76) |
Held-to-maturity, number of securities | investment_security | 14 | 3 |
Held-to-maturity securities, fair value | $ 39,167 | $ 16,943 |
Unrealized Loss | $ (1,269) | $ (209) |
Total securities, less than 12 months, number of securities | investment_security | 323 | 186 |
Total securities, less than 12 months, fair value | $ 701,746 | $ 330,813 |
Total securities, less than 12 months, gross unrealized holding losses | $ (13,615) | $ (2,292) |
Total securities, 12 months or longer, number of securities | investment_security | 134 | 77 |
Total securities, 12 months or longer, fair value | $ 249,649 | $ 146,937 |
Total securities, 12 months or longer, gross unrealized holding losses | $ (12,227) | $ (3,432) |
Total securities, number of securities | investment_security | 457 | 263 |
Total securities, fair value | $ 951,395 | $ 477,750 |
Total securities, gross unrealized holding losses | $ (25,842) | $ (5,724) |
U.S. Treasury | ||
Less than 12 Months | ||
Number | investment_security | 5 | |
Fair Value | $ 39,925 | |
Gross Unrealized Holding Losses | $ (329) | |
12 Months or Longer | ||
Number | investment_security | 0 | |
Fair Value | $ 0 | |
Gross Unrealized Holding Losses | $ 0 | |
Total | ||
Number | investment_security | 5 | |
Fair Value | $ 39,925 | |
Gross Unrealized Holding Losses | $ (329) | |
Agency | ||
Less than 12 Months | ||
Number | investment_security | 28 | 6 |
Fair Value | $ 90,499 | $ 13,754 |
Gross Unrealized Holding Losses | $ (859) | $ (78) |
12 Months or Longer | ||
Number | investment_security | 1 | 0 |
Fair Value | $ 1,121 | $ 0 |
Gross Unrealized Holding Losses | $ (18) | $ 0 |
Total | ||
Number | investment_security | 29 | 6 |
Fair Value | $ 91,620 | $ 13,754 |
Gross Unrealized Holding Losses | $ (877) | $ (78) |
Corporate | ||
Less than 12 Months | ||
Number | investment_security | 17 | 4 |
Fair Value | $ 61,221 | $ 10,079 |
Gross Unrealized Holding Losses | $ (1,076) | $ (64) |
12 Months or Longer | ||
Number | investment_security | 4 | 2 |
Fair Value | $ 8,942 | $ 6,076 |
Gross Unrealized Holding Losses | $ (326) | $ (130) |
Total | ||
Number | investment_security | 21 | 6 |
Fair Value | $ 70,163 | $ 16,155 |
Gross Unrealized Holding Losses | $ (1,402) | $ (194) |
Municipal bonds | ||
Less than 12 Months | ||
Number | investment_security | 173 | 103 |
Fair Value | $ 150,294 | $ 61,313 |
Gross Unrealized Holding Losses | $ (2,817) | $ (268) |
12 Months or Longer | ||
Number | investment_security | 42 | 30 |
Fair Value | $ 22,161 | $ 15,658 |
Gross Unrealized Holding Losses | $ (1,476) | $ (475) |
Total | ||
Number | investment_security | 215 | 133 |
Fair Value | $ 172,455 | $ 76,971 |
Gross Unrealized Holding Losses | $ (4,293) | $ (743) |
Collateralized mortgage obligation: residential | ||
Less than 12 Months | ||
Number | investment_security | 2 | 5 |
Fair Value | $ 3,023 | $ 13,971 |
Gross Unrealized Holding Losses | $ (54) | $ (149) |
12 Months or Longer | ||
Number | investment_security | 7 | 3 |
Fair Value | $ 16,537 | $ 8,943 |
Gross Unrealized Holding Losses | $ (687) | $ (186) |
Total | ||
Number | investment_security | 9 | 8 |
Fair Value | $ 19,560 | $ 22,914 |
Gross Unrealized Holding Losses | $ (741) | $ (335) |
Mortgage-backed securities: residential | ||
Less than 12 Months | ||
Number | investment_security | 85 | 66 |
Fair Value | $ 323,466 | $ 220,951 |
Gross Unrealized Holding Losses | $ (7,531) | $ (1,600) |
12 Months or Longer | ||
Number | investment_security | 79 | 41 |
Fair Value | $ 195,039 | $ 110,062 |
Gross Unrealized Holding Losses | $ (9,400) | $ (2,565) |
Total | ||
Number | investment_security | 164 | 107 |
Fair Value | $ 518,505 | $ 331,013 |
Gross Unrealized Holding Losses | $ (16,931) | $ (4,165) |
Held-to-maturity, less than 12 months, number of securities | investment_security | 13 | 2 |
Held-to-maturity, less than 12 months, fair value | $ 33,318 | $ 10,745 |
Held-to-maturity, less than 12 months, gross unrealized holding losses | $ (949) | $ (133) |
Held-to-maturity, 12 months or longer, number of securities | investment_security | 1 | 1 |
Held-to-maturity, 12 months or longer, fair value | $ 5,849 | $ 6,198 |
Held-to-maturity, 12 months or longer, gross unrealized holding losses | $ (320) | $ (76) |
Held-to-maturity, number of securities | investment_security | 14 | 3 |
Held-to-maturity securities, fair value | $ 39,167 | $ 16,943 |
Unrealized Loss | $ (1,269) | $ (209) |
Investment Securities - By Cont
Investment Securities - By Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
One Year or Less | $ 13,994 | |
More than One Year to Five Years | 55,816 | |
More than Five Years to Ten Years | 433,725 | |
More than Ten Years | 574,980 | |
Total | 1,078,515 | $ 786,783 |
Fair Value | ||
One Year or Less | 13,990 | |
More than One Year to Five Years | 55,589 | |
More than Five Years to Ten Years | 426,710 | |
More than Ten Years | 558,588 | |
Total | 1,054,877 | 787,429 |
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 933 | |
More than Ten Years | 45,452 | |
Amortized Cost | 46,385 | 18,291 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 932 | |
More than Ten Years | 44,206 | |
Total | 45,138 | 18,082 |
Amortized Cost | ||
One Year or Less | 13,994 | |
More than One Year to Five Years | 55,816 | |
More than Five Years to Ten Years | 434,658 | |
More than Ten Years | 620,432 | |
Total | 1,124,900 | |
Fair Value | ||
One Year or Less | 13,990 | |
More than One Year to Five Years | 55,589 | |
More than Five Years to Ten Years | 427,642 | |
More than Ten Years | 602,794 | |
Total | 1,100,015 | |
U.S. Treasury | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 10,401 | |
More than Five Years to Ten Years | 49,258 | |
More than Ten Years | 0 | |
Total | 59,659 | |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 10,403 | |
More than Five Years to Ten Years | 48,940 | |
More than Ten Years | 0 | |
Total | 59,343 | |
Agency | ||
Amortized Cost | ||
One Year or Less | 10,977 | |
More than One Year to Five Years | 12,111 | |
More than Five Years to Ten Years | 68,902 | |
More than Ten Years | 21,638 | |
Total | 113,628 | 47,051 |
Fair Value | ||
One Year or Less | 10,977 | |
More than One Year to Five Years | 12,125 | |
More than Five Years to Ten Years | 68,379 | |
More than Ten Years | 21,290 | |
Total | 112,771 | 47,209 |
Corporate | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 102,761 | |
More than Ten Years | 0 | |
Total | 102,761 | 78,155 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 101,594 | |
More than Ten Years | 0 | |
Total | 101,594 | 79,546 |
Municipal bonds | ||
Amortized Cost | ||
One Year or Less | 3,017 | |
More than One Year to Five Years | 31,511 | |
More than Five Years to Ten Years | 70,926 | |
More than Ten Years | 129,456 | |
Total | 234,910 | 228,929 |
Fair Value | ||
One Year or Less | 3,013 | |
More than One Year to Five Years | 31,334 | |
More than Five Years to Ten Years | 69,156 | |
More than Ten Years | 127,698 | |
Total | 231,201 | 232,128 |
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 | 872 | |
More than Ten Years | 25,025 | |
Total | 25,897 | 33,984 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 871 | |
More than Ten Years | 24,335 | |
Total | 25,206 | 33,781 |
Mortgage-backed securities: residential | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 1,793 | |
More than Five Years to Ten Years | 141,006 | |
More than Ten Years | 398,861 | |
Total | 541,660 | 398,664 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 1,727 | |
More than Five Years to Ten Years | 137,770 | |
More than Ten Years | 385,265 | |
Total | 524,762 | 394,765 |
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 933 | |
More than Ten Years | 44,354 | |
Amortized Cost | 45,287 | 17,153 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 932 | |
More than Ten Years | 43,108 | |
Total | 44,040 | $ 16,944 |
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 | 1,098 | |
Amortized Cost | 1,098 | |
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 | 1,098 | |
Total | $ 1,098 |
Loans Held for Investment - Com
Loans Held for Investment - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Loans Held for Investment | ||||
Gross loans held for investment | $ 8,767,852 | $ 6,198,627 | ||
Deferred loan origination costs/(fees) and premiums/(discounts), net | (8,648) | (2,403) | ||
Loans held for investment | 8,759,204 | 6,196,224 | ||
Allowance for loan losses | (33,306) | (28,936) | $ (27,143) | $ (21,296) |
Loans held for investment, net | 8,725,898 | 6,167,288 | ||
Loans held for sale, at lower of cost or fair value | 52,880 | 23,426 | ||
Unaccreted mark-to-market discount | 71,700 | 29,100 | ||
Business loans | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 4,097,463 | 3,337,866 | ||
Business loans | Commercial and industrial | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 1,359,841 | 1,086,659 | ||
Allowance for loan losses | (10,384) | (9,721) | (8,309) | (6,362) |
Business loans | Franchise | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 735,366 | 660,414 | ||
Allowance for loan losses | (6,332) | (5,797) | (5,819) | (3,845) |
Business loans | Commercial owner occupied | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 1,675,528 | 1,289,213 | ||
Allowance for loan losses | (1,213) | (767) | (815) | (1,193) |
Business loans | SBA | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 193,487 | 185,514 | ||
Allowance for loan losses | (2,827) | (2,890) | (2,970) | (1,039) |
Business loans | Agribusiness | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 133,241 | 116,066 | ||
Allowance for loan losses | (3,565) | (1,291) | (169) | 0 |
Real estate loans | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 4,555,653 | 2,767,830 | ||
Real estate loans | Commercial non-owner occupied | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 1,931,165 | 1,243,115 | ||
Allowance for loan losses | (1,483) | (1,266) | (1,320) | (1,715) |
Real estate loans | Multi-family | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 1,554,692 | 794,384 | ||
Allowance for loan losses | (623) | (607) | (658) | (2,927) |
Real estate loans | One-to-four family | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 376,617 | 270,894 | ||
Allowance for loan losses | (719) | (803) | (846) | (365) |
Real estate loans | Construction | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 504,708 | 282,811 | ||
Allowance for loan losses | (4,820) | (4,569) | (5,140) | (3,632) |
Real estate loans | Farmland | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 138,479 | 145,393 | ||
Allowance for loan losses | (375) | (137) | (92) | 0 |
Real estate loans | Land | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 49,992 | 31,233 | ||
Allowance for loan losses | (868) | (993) | (944) | (198) |
Consumer Loans | Consumer loans | ||||
Loans Held for Investment | ||||
Gross loans held for investment | 114,736 | 92,931 | ||
Allowance for loan losses | $ (97) | $ (95) | $ (61) | $ (20) |
Loans Held for Investment - Nar
Loans Held for Investment - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)areagrade | Dec. 31, 2017USD ($) | |
Loans Held for Investment | ||
Servicing rights retained from guaranteed portion of SBA loans sold | $ 8,800,000 | $ 8,800,000 |
Unpaid principal balance for loans and participations serviced for others | 627,000,000 | 635,000,000 |
Secured loans limit to one borrower | 512,000,000 | |
Unsecured loans limit to one borrower | 307,000,000 | |
Aggregate outstanding balance of loans to one borrower of secured credit | $ 81,700,000 | |
Number of areas where the entity's credit quality is maintained and credit risk managed | area | 2 | |
Number of Pass scale grades | grade | 6 | |
Nonaccruing loans | $ 7,268,000 | 3,284,000 |
Loans 90 days or more past due and still accruing | 0 | 1,800,000 |
Investment in TDR | 0 | 97,000 |
Consumer mortgage loans collateralized by residential real estate, foreclosure proceedings in process | 0 | 73,000 |
Outstanding balance | 7,900,000 | |
Purchased credit impaired loans, nonaccrual status | 0 | |
SBA | ||
Loans Held for Investment | ||
Unpaid principal balance for loans and participations serviced for others | $ 504,000,000 | $ 320,000,000 |
Loans Held for Investment - Int
Loans Held for Investment - Internal Risk Grading System (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Credit Risk Grades | ||
Gross loans | $ 8,820,732 | $ 6,222,053 |
Pass | ||
Credit Risk Grades | ||
Gross loans | 8,727,280 | 6,160,136 |
Special Mention | ||
Credit Risk Grades | ||
Gross loans | 18,772 | 13,612 |
Substandard | ||
Credit Risk Grades | ||
Gross loans | 74,680 | 48,305 |
Doubtful | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Business loans | Commercial and industrial | ||
Credit Risk Grades | ||
Gross loans | 1,359,841 | 1,086,659 |
Business loans | Franchise | ||
Credit Risk Grades | ||
Gross loans | 735,366 | 660,414 |
Business loans | Commercial owner occupied | ||
Credit Risk Grades | ||
Gross loans | 1,717,150 | 1,295,215 |
Business loans | SBA | ||
Credit Risk Grades | ||
Gross loans | 203,229 | 202,938 |
Business loans | Agribusiness | ||
Credit Risk Grades | ||
Gross loans | 133,241 | 116,066 |
Business loans | Pass | Commercial and industrial | ||
Credit Risk Grades | ||
Gross loans | 1,325,912 | 1,063,452 |
Business loans | Pass | Franchise | ||
Credit Risk Grades | ||
Gross loans | 735,157 | 660,414 |
Business loans | Pass | Commercial owner occupied | ||
Credit Risk Grades | ||
Gross loans | 1,690,912 | 1,273,381 |
Business loans | Pass | SBA | ||
Credit Risk Grades | ||
Gross loans | 195,527 | 199,468 |
Business loans | Pass | Agribusiness | ||
Credit Risk Grades | ||
Gross loans | 126,695 | 108,143 |
Business loans | Special Mention | Commercial and industrial | ||
Credit Risk Grades | ||
Gross loans | 14,380 | 8,163 |
Business loans | Special Mention | Franchise | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Business loans | Special Mention | Commercial owner occupied | ||
Credit Risk Grades | ||
Gross loans | 1,348 | 654 |
Business loans | Special Mention | SBA | ||
Credit Risk Grades | ||
Gross loans | 1,810 | 1 |
Business loans | Special Mention | Agribusiness | ||
Credit Risk Grades | ||
Gross loans | 0 | 4,079 |
Business loans | Substandard | Commercial and industrial | ||
Credit Risk Grades | ||
Gross loans | 19,549 | 15,044 |
Business loans | Substandard | Franchise | ||
Credit Risk Grades | ||
Gross loans | 209 | 0 |
Business loans | Substandard | Commercial owner occupied | ||
Credit Risk Grades | ||
Gross loans | 24,890 | 21,180 |
Business loans | Substandard | SBA | ||
Credit Risk Grades | ||
Gross loans | 5,892 | 3,469 |
Business loans | Substandard | Agribusiness | ||
Credit Risk Grades | ||
Gross loans | 6,546 | 3,844 |
Business loans | Doubtful | Commercial and industrial | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Business loans | Doubtful | Franchise | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Business loans | Doubtful | Commercial owner occupied | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Business loans | Doubtful | SBA | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Business loans | Doubtful | Agribusiness | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Commercial non-owner occupied | ||
Credit Risk Grades | ||
Gross loans | 1,932,681 | 1,243,115 |
Real estate loans | Multi-family | ||
Credit Risk Grades | ||
Gross loans | 1,554,692 | 794,384 |
Real estate loans | One-to-four family | ||
Credit Risk Grades | ||
Gross loans | 376,617 | 270,894 |
Real estate loans | Construction | ||
Credit Risk Grades | ||
Gross loans | 504,708 | 282,811 |
Real estate loans | Farmland | ||
Credit Risk Grades | ||
Gross loans | 138,479 | 145,393 |
Real estate loans | Land | ||
Credit Risk Grades | ||
Gross loans | 49,992 | 31,233 |
Real estate loans | Pass | Commercial non-owner occupied | ||
Credit Risk Grades | ||
Gross loans | 1,924,416 | 1,242,045 |
Real estate loans | Pass | Multi-family | ||
Credit Risk Grades | ||
Gross loans | 1,553,437 | 794,156 |
Real estate loans | Pass | One-to-four family | ||
Credit Risk Grades | ||
Gross loans | 368,270 | 268,776 |
Real estate loans | Pass | Construction | ||
Credit Risk Grades | ||
Gross loans | 504,708 | 282,294 |
Real estate loans | Pass | Farmland | ||
Credit Risk Grades | ||
Gross loans | 138,356 | 144,234 |
Real estate loans | Pass | Land | ||
Credit Risk Grades | ||
Gross loans | 49,292 | 30,979 |
Real estate loans | Special Mention | Commercial non-owner occupied | ||
Credit Risk Grades | ||
Gross loans | 163 | 0 |
Real estate loans | Special Mention | Multi-family | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Special Mention | One-to-four family | ||
Credit Risk Grades | ||
Gross loans | 1,066 | 154 |
Real estate loans | Special Mention | Construction | ||
Credit Risk Grades | ||
Gross loans | 0 | 517 |
Real estate loans | Special Mention | Farmland | ||
Credit Risk Grades | ||
Gross loans | 0 | 44 |
Real estate loans | Special Mention | Land | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Substandard | Commercial non-owner occupied | ||
Credit Risk Grades | ||
Gross loans | 8,102 | 1,070 |
Real estate loans | Substandard | Multi-family | ||
Credit Risk Grades | ||
Gross loans | 1,255 | 228 |
Real estate loans | Substandard | One-to-four family | ||
Credit Risk Grades | ||
Gross loans | 7,281 | 1,964 |
Real estate loans | Substandard | Construction | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Substandard | Farmland | ||
Credit Risk Grades | ||
Gross loans | 123 | 1,115 |
Real estate loans | Substandard | Land | ||
Credit Risk Grades | ||
Gross loans | 700 | 254 |
Real estate loans | Doubtful | Commercial non-owner occupied | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Doubtful | Multi-family | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Doubtful | One-to-four family | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Doubtful | Construction | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Doubtful | Farmland | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Real estate loans | Doubtful | Land | ||
Credit Risk Grades | ||
Gross loans | 0 | 0 |
Consumer Loans | Consumer loans | ||
Credit Risk Grades | ||
Gross loans | 114,736 | 92,931 |
Consumer Loans | Pass | Consumer loans | ||
Credit Risk Grades | ||
Gross loans | 114,598 | 92,794 |
Consumer Loans | Special Mention | Consumer loans | ||
Credit Risk Grades | ||
Gross loans | 5 | 0 |
Consumer Loans | Substandard | Consumer loans | ||
Credit Risk Grades | ||
Gross loans | 133 | 137 |
Consumer Loans | Doubtful | Consumer loans | ||
Credit Risk Grades | ||
Gross loans | $ 0 | $ 0 |
Loans Held for Investment - Del
Loans Held for Investment - Delinquencies (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other information concerning the credit quality | ||
Gross loans | $ 8,820,732 | $ 6,222,053 |
Non-Accruing | 7,268 | 3,284 |
Current | ||
Other information concerning the credit quality | ||
Current | 8,812,987 | 6,211,994 |
30-59 | ||
Other information concerning the credit quality | ||
Days Past Due | 1,977 | 5,964 |
60-89 | ||
Other information concerning the credit quality | ||
Days Past Due | 720 | 1,056 |
90 | ||
Other information concerning the credit quality | ||
Days Past Due | 5,048 | 3,039 |
Business loans | Commercial and industrial | ||
Other information concerning the credit quality | ||
Gross loans | 1,359,841 | 1,086,659 |
Non-Accruing | 1,027 | 1,160 |
Business loans | Franchise | ||
Other information concerning the credit quality | ||
Gross loans | 735,366 | 660,414 |
Non-Accruing | 209 | 0 |
Business loans | Commercial owner occupied | ||
Other information concerning the credit quality | ||
Gross loans | 1,717,150 | 1,295,215 |
Non-Accruing | 0 | 97 |
Business loans | SBA | ||
Other information concerning the credit quality | ||
Gross loans | 203,229 | 202,938 |
Non-Accruing | 2,748 | 1,201 |
Business loans | Agribusiness | ||
Other information concerning the credit quality | ||
Gross loans | 133,241 | 116,066 |
Non-Accruing | 0 | 0 |
Business loans | Current | Commercial and industrial | ||
Other information concerning the credit quality | ||
Current | 1,358,766 | 1,085,770 |
Business loans | Current | Franchise | ||
Other information concerning the credit quality | ||
Current | 735,157 | 660,414 |
Business loans | Current | Commercial owner occupied | ||
Other information concerning the credit quality | ||
Current | 1,716,146 | 1,291,255 |
Business loans | Current | SBA | ||
Other information concerning the credit quality | ||
Current | 200,596 | 200,821 |
Business loans | Current | Agribusiness | ||
Other information concerning the credit quality | ||
Current | 133,241 | 116,066 |
Business loans | 30-59 | Commercial and industrial | ||
Other information concerning the credit quality | ||
Days Past Due | 334 | 84 |
Business loans | 30-59 | Franchise | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Business loans | 30-59 | Commercial owner occupied | ||
Other information concerning the credit quality | ||
Days Past Due | 793 | 3,474 |
Business loans | 30-59 | SBA | ||
Other information concerning the credit quality | ||
Days Past Due | 4 | 177 |
Business loans | 30-59 | Agribusiness | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Business loans | 60-89 | Commercial and industrial | ||
Other information concerning the credit quality | ||
Days Past Due | 636 | 570 |
Business loans | 60-89 | Franchise | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Business loans | 60-89 | Commercial owner occupied | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 486 |
Business loans | 60-89 | SBA | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Business loans | 60-89 | Agribusiness | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Business loans | 90 | Commercial and industrial | ||
Other information concerning the credit quality | ||
Days Past Due | 105 | 235 |
Business loans | 90 | Franchise | ||
Other information concerning the credit quality | ||
Days Past Due | 209 | 0 |
Business loans | 90 | Commercial owner occupied | ||
Other information concerning the credit quality | ||
Days Past Due | 211 | 0 |
Business loans | 90 | SBA | ||
Other information concerning the credit quality | ||
Days Past Due | 2,629 | 1,940 |
Business loans | 90 | Agribusiness | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | Commercial non-owner occupied | ||
Other information concerning the credit quality | ||
Gross loans | 1,932,681 | 1,243,115 |
Non-Accruing | 1,290 | 0 |
Real estate loans | Multi-family | ||
Other information concerning the credit quality | ||
Gross loans | 1,554,692 | 794,384 |
Non-Accruing | 589 | 0 |
Real estate loans | One-to-four family | ||
Other information concerning the credit quality | ||
Gross loans | 376,617 | 270,894 |
Non-Accruing | 1,388 | 817 |
Real estate loans | Construction | ||
Other information concerning the credit quality | ||
Gross loans | 504,708 | 282,811 |
Non-Accruing | 0 | 0 |
Real estate loans | Farmland | ||
Other information concerning the credit quality | ||
Gross loans | 138,479 | 145,393 |
Non-Accruing | 0 | 0 |
Real estate loans | Land | ||
Other information concerning the credit quality | ||
Gross loans | 49,992 | 31,233 |
Non-Accruing | 4 | 9 |
Real estate loans | Current | Commercial non-owner occupied | ||
Other information concerning the credit quality | ||
Current | 1,931,391 | 1,243,115 |
Real estate loans | Current | Multi-family | ||
Other information concerning the credit quality | ||
Current | 1,554,103 | 792,603 |
Real estate loans | Current | One-to-four family | ||
Other information concerning the credit quality | ||
Current | 375,694 | 269,725 |
Real estate loans | Current | Construction | ||
Other information concerning the credit quality | ||
Current | 504,708 | 282,811 |
Real estate loans | Current | Farmland | ||
Other information concerning the credit quality | ||
Current | 138,479 | 145,393 |
Real estate loans | Current | Land | ||
Other information concerning the credit quality | ||
Current | 49,988 | 31,141 |
Real estate loans | 30-59 | Commercial non-owner occupied | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 30-59 | Multi-family | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 1,781 |
Real estate loans | 30-59 | One-to-four family | ||
Other information concerning the credit quality | ||
Days Past Due | 836 | 354 |
Real estate loans | 30-59 | Construction | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 30-59 | Farmland | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 30-59 | Land | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 83 |
Real estate loans | 60-89 | Commercial non-owner occupied | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 60-89 | Multi-family | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 60-89 | One-to-four family | ||
Other information concerning the credit quality | ||
Days Past Due | 76 | 0 |
Real estate loans | 60-89 | Construction | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 60-89 | Farmland | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 60-89 | Land | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 90 | Commercial non-owner occupied | ||
Other information concerning the credit quality | ||
Days Past Due | 1,290 | 0 |
Real estate loans | 90 | Multi-family | ||
Other information concerning the credit quality | ||
Days Past Due | 589 | 0 |
Real estate loans | 90 | One-to-four family | ||
Other information concerning the credit quality | ||
Days Past Due | 11 | 815 |
Real estate loans | 90 | Construction | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 90 | Farmland | ||
Other information concerning the credit quality | ||
Days Past Due | 0 | 0 |
Real estate loans | 90 | Land | ||
Other information concerning the credit quality | ||
Days Past Due | 4 | 9 |
Consumer Loans | Consumer loans | ||
Other information concerning the credit quality | ||
Gross loans | 114,736 | 92,931 |
Non-Accruing | 13 | 0 |
Consumer Loans | Current | Consumer loans | ||
Other information concerning the credit quality | ||
Current | 114,718 | 92,880 |
Consumer Loans | 30-59 | Consumer loans | ||
Other information concerning the credit quality | ||
Days Past Due | 10 | 11 |
Consumer Loans | 60-89 | Consumer loans | ||
Other information concerning the credit quality | ||
Days Past Due | 8 | 0 |
Consumer Loans | 90 | Consumer loans | ||
Other information concerning the credit quality | ||
Days Past Due | $ 0 | $ 40 |
Loans Held for Investment - C_2
Loans Held for Investment - Company's Investment in Impaired Loans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Impaired Loans | ||||||
Unpaid Principal Balance | $ 12,739,000 | $ 12,739,000 | $ 6,896,000 | |||
Total impaired loans | 7,268,000 | 7,268,000 | 3,284,000 | |||
With Specific Allowance | 488,000 | 488,000 | 97,000 | |||
Without Specific Allowance | 6,780,000 | 6,780,000 | 3,187,000 | |||
Specific Allowance for Impaired Loans | 250,000 | $ 0 | 250,000 | $ 0 | 55,000 | |
Average Recorded Investment | 6,456,000 | $ 7,402,000 | 1,157,000 | 7,234,000 | 819,000 | |
Interest Income Recognized | 0 | 0 | 22,000 | 0 | 47,000 | |
Business loans | Commercial and industrial | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 1,515,000 | 1,515,000 | 1,585,000 | |||
Total impaired loans | 1,027,000 | 1,027,000 | 1,160,000 | |||
With Specific Allowance | 0 | 0 | 0 | |||
Without Specific Allowance | 1,027,000 | 1,027,000 | 1,160,000 | |||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 1,030,000 | 1,272,000 | 446,000 | 1,161,000 | 218,000 | |
Interest Income Recognized | 0 | 0 | 7,000 | 0 | 12,000 | |
Business loans | Franchise | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 205,000 | 205,000 | ||||
Total impaired loans | 209,000 | 209,000 | ||||
With Specific Allowance | 0 | 0 | ||||
Without Specific Allowance | 209,000 | 209,000 | ||||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | ||
Average Recorded Investment | 209,000 | 70,000 | 0 | 93,000 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | 0 | |
Business loans | Commercial owner occupied | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 98,000 | |||||
Total impaired loans | 97,000 | |||||
With Specific Allowance | 97,000 | |||||
Without Specific Allowance | 0 | |||||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 55,000 | |
Average Recorded Investment | 0 | 2,317,000 | 170,000 | 1,931,000 | 162,000 | |
Interest Income Recognized | 0 | 0 | 3,000 | 0 | 8,000 | |
Business loans | SBA | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 7,618,000 | 7,618,000 | 4,329,000 | |||
Total impaired loans | 2,748,000 | 2,748,000 | 1,201,000 | |||
With Specific Allowance | 488,000 | 488,000 | 0 | |||
Without Specific Allowance | 2,260,000 | 2,260,000 | 1,201,000 | |||
Specific Allowance for Impaired Loans | 250,000 | 0 | 250,000 | 0 | 0 | |
Average Recorded Investment | 1,914,000 | 1,360,000 | 85,000 | 1,505,000 | 204,000 | |
Interest Income Recognized | 0 | 0 | 2,000 | 0 | 10,000 | |
Real estate loans | Commercial non-owner occupied | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 1,287,000 | 1,287,000 | ||||
Total impaired loans | 1,290,000 | 1,290,000 | ||||
With Specific Allowance | 0 | 0 | ||||
Without Specific Allowance | 1,290,000 | 1,290,000 | ||||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | ||
Average Recorded Investment | 1,290,000 | 430,000 | 342,000 | 573,000 | 114,000 | |
Interest Income Recognized | 0 | 0 | 7,000 | 0 | 7,000 | |
Real estate loans | Multi-family | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 589,000 | 589,000 | ||||
Total impaired loans | 589,000 | 589,000 | ||||
With Specific Allowance | 0 | 0 | ||||
Without Specific Allowance | 589,000 | 589,000 | ||||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | ||
Average Recorded Investment | 589,000 | 589,000 | 0 | 666,000 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | 0 | |
Real estate loans | One-to-four family | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 1,476,000 | 1,476,000 | 849,000 | |||
Total impaired loans | 1,388,000 | 1,388,000 | 817,000 | |||
With Specific Allowance | 0 | 0 | 0 | |||
Without Specific Allowance | 1,388,000 | 1,388,000 | 817,000 | |||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 1,406,000 | 1,343,000 | 103,000 | 1,258,000 | 108,000 | |
Interest Income Recognized | 0 | 0 | 3,000 | 0 | 9,000 | |
Real estate loans | Land | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 34,000 | 34,000 | 35,000 | |||
Total impaired loans | 4,000 | 4,000 | 9,000 | |||
With Specific Allowance | 0 | 0 | 0 | |||
Without Specific Allowance | 4,000 | 4,000 | 9,000 | |||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | $ 0 | |
Average Recorded Investment | 5,000 | 6,000 | 11,000 | 6,000 | 13,000 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | 1,000 | |
Consumer Loans | Consumer loans | ||||||
Impaired Loans | ||||||
Unpaid Principal Balance | 15,000 | 15,000 | ||||
Total impaired loans | 13,000 | 13,000 | ||||
With Specific Allowance | 0 | 0 | ||||
Without Specific Allowance | 13,000 | 13,000 | ||||
Specific Allowance for Impaired Loans | 0 | 0 | 0 | 0 | ||
Average Recorded Investment | 13,000 | 15,000 | 0 | 41,000 | 0 | |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Held for Investment - C_3
Loans Held for Investment - Components of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Nonaccruing loans | $ 7,268 | $ 3,284 |
Accruing loans | 0 | 0 |
Total impaired loans | $ 7,268 | $ 3,284 |
Loans Held for Investment - Pur
Loans Held for Investment - Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans Held for Investment | ||
Unpaid Principal Balance | $ 12,739 | $ 6,896 |
Business loans | Commercial and industrial | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 1,515 | 1,585 |
Business loans | Commercial owner occupied | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 98 | |
Business loans | SBA | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 7,618 | 4,329 |
Real estate loans | Commercial non-owner occupied | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 1,287 | |
Real estate loans | One-to-four family | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 1,476 | 849 |
Consumer Loans | Consumer loans | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 15 | |
Acquired Banks | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 7,882 | 8,889 |
Acquired Banks | Business loans | Commercial and industrial | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 1,700 | 3,310 |
Acquired Banks | Business loans | Commercial owner occupied | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 2,808 | 1,262 |
Acquired Banks | Business loans | SBA | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 1,304 | 1,802 |
Acquired Banks | Real estate loans | Commercial non-owner occupied | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 1,077 | 1,650 |
Acquired Banks | Real estate loans | One-to-four family | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 909 | 255 |
Acquired Banks | Real estate loans | Construction | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 0 | 517 |
Acquired Banks | Real estate loans | Land | ||
Loans Held for Investment | ||
Unpaid Principal Balance | 76 | 83 |
Acquired Banks | Consumer Loans | Consumer loans | ||
Loans Held for Investment | ||
Unpaid Principal Balance | $ 8 | $ 10 |
Loans Held for Investment - Acc
Loans Held for Investment - Accretable Yield Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accretable yield on purchased credit impaired | |||||
Balance at the beginning of period | $ 1,473 | $ 1,709 | $ 3,497 | $ 3,019 | $ 3,747 |
Additions | 483 | 0 | 0 | 483 | 2,036 |
Accretion | (162) | (270) | (388) | (668) | (1,729) |
Payoffs | (1) | 32 | 39 | (1,819) | 39 |
Reclassification from (to) nonaccretable difference | 195 | 2 | 0 | 973 | (945) |
Balance at the end of period | $ 1,988 | $ 1,473 | $ 3,148 | $ 1,988 | $ 3,148 |
Allowance for Loan Losses (Deta
Allowance for Loan Losses (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 28,936,000 | $ 21,296,000 | |
Charge-offs | (1,248,000) | (902,000) | |
Recoveries | 366,000 | 294,000 | |
Provisions for (reduction in) loan losses | 5,252,000 | 6,455,000 | |
Balance, at the end of the period | 33,306,000 | 27,143,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 250,000 | 0 | $ 55,000 |
Amount of allowance attributed to: General portfolio allocation | 33,056,000 | 27,143,000 | |
Loans individually evaluated for impairment | $ 7,268,000 | $ 515,000 | |
Specific reserves to total loans individually evaluated for impairment | 3.44% | 0.00% | |
Loans collectively evaluated for impairment | $ 8,760,584,000 | $ 5,009,373,000 | |
General reserves to total loans collectively evaluated for impairment | 0.38% | 0.54% | |
Gross loans, excluding loan receivable held for sale | $ 8,767,852,000 | $ 5,009,888,000 | |
Total allowance to gross loans | 0.38% | 0.54% | |
Business loans | Commercial and industrial | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 9,721,000 | $ 6,362,000 | |
Charge-offs | (1,011,000) | (894,000) | |
Recoveries | 283,000 | 70,000 | |
Provisions for (reduction in) loan losses | 1,391,000 | 2,771,000 | |
Balance, at the end of the period | 10,384,000 | 8,309,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 |
Amount of allowance attributed to: General portfolio allocation | 10,384,000 | 8,309,000 | |
Loans individually evaluated for impairment | $ 1,027,000 | $ 228,000 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 1,358,814,000 | $ 762,863,000 | |
General reserves to total loans collectively evaluated for impairment | 0.76% | 1.09% | |
Gross loans, excluding loan receivable held for sale | $ 1,359,841,000 | $ 763,091,000 | |
Total allowance to gross loans | 0.76% | 1.09% | |
Business loans | Franchise | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 5,797,000 | $ 3,845,000 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 535,000 | 1,974,000 | |
Balance, at the end of the period | 6,332,000 | 5,819,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 6,332,000 | 5,819,000 | |
Loans individually evaluated for impairment | $ 209,000 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 735,157,000 | $ 626,508,000 | |
General reserves to total loans collectively evaluated for impairment | 0.86% | 0.93% | |
Gross loans, excluding loan receivable held for sale | $ 735,366,000 | $ 626,508,000 | |
Total allowance to gross loans | 0.86% | 0.93% | |
Business loans | Commercial owner occupied | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 767,000 | $ 1,193,000 | |
Charge-offs | 0 | 0 | |
Recoveries | 32,000 | 94,000 | |
Provisions for (reduction in) loan losses | 414,000 | (472,000) | |
Balance, at the end of the period | 1,213,000 | 815,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 55,000 |
Amount of allowance attributed to: General portfolio allocation | 1,213,000 | 815,000 | |
Loans individually evaluated for impairment | $ 0 | $ 83,000 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 1,675,528,000 | $ 805,054,000 | |
General reserves to total loans collectively evaluated for impairment | 0.07% | 0.10% | |
Gross loans, excluding loan receivable held for sale | $ 1,675,528,000 | $ 805,137,000 | |
Total allowance to gross loans | 0.07% | 0.10% | |
Business loans | SBA | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 2,890,000 | $ 1,039,000 | |
Charge-offs | (100,000) | (8,000) | |
Recoveries | 43,000 | 125,000 | |
Provisions for (reduction in) loan losses | (6,000) | 1,814,000 | |
Balance, at the end of the period | 2,827,000 | 2,970,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 250,000 | 0 | 0 |
Amount of allowance attributed to: General portfolio allocation | 2,577,000 | 2,970,000 | |
Loans individually evaluated for impairment | $ 2,748,000 | $ 90,000 | |
Specific reserves to total loans individually evaluated for impairment | 9.10% | 0.00% | |
Loans collectively evaluated for impairment | $ 190,739,000 | $ 107,121,000 | |
General reserves to total loans collectively evaluated for impairment | 1.35% | 2.77% | |
Gross loans, excluding loan receivable held for sale | $ 193,487,000 | $ 107,211,000 | |
Total allowance to gross loans | 1.46% | 2.77% | |
Business loans | Agribusiness | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 1,291,000 | $ 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 2,274,000 | 169,000 | |
Balance, at the end of the period | 3,565,000 | 169,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 3,565,000 | 169,000 | |
Loans individually evaluated for impairment | $ 0 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 133,241,000 | $ 86,466,000 | |
General reserves to total loans collectively evaluated for impairment | 2.68% | 0.20% | |
Gross loans, excluding loan receivable held for sale | $ 133,241,000 | $ 86,466,000 | |
Total allowance to gross loans | 2.68% | 0.20% | |
Real estate loans | Commercial non-owner occupied | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 1,266,000 | $ 1,715,000 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 217,000 | (395,000) | |
Balance, at the end of the period | 1,483,000 | 1,320,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 1,483,000 | 1,320,000 | |
Loans individually evaluated for impairment | $ 1,290,000 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 1,929,875,000 | $ 1,098,995,000 | |
General reserves to total loans collectively evaluated for impairment | 0.08% | 0.12% | |
Gross loans, excluding loan receivable held for sale | $ 1,931,165,000 | $ 1,098,995,000 | |
Total allowance to gross loans | 0.08% | 0.12% | |
Real estate loans | Multi-family | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 607,000 | $ 2,927,000 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 16,000 | (2,269,000) | |
Balance, at the end of the period | 623,000 | 658,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 623,000 | 658,000 | |
Loans individually evaluated for impairment | $ 589,000 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 1,554,103,000 | $ 797,370,000 | |
General reserves to total loans collectively evaluated for impairment | 0.04% | 0.08% | |
Gross loans, excluding loan receivable held for sale | $ 1,554,692,000 | $ 797,370,000 | |
Total allowance to gross loans | 0.04% | 0.08% | |
Real estate loans | One-to-four family | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 803,000 | $ 365,000 | |
Charge-offs | 0 | 0 | |
Recoveries | 1,000 | 4,000 | |
Provisions for (reduction in) loan losses | (85,000) | 477,000 | |
Balance, at the end of the period | 719,000 | 846,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | 0 |
Amount of allowance attributed to: General portfolio allocation | 719,000 | 846,000 | |
Loans individually evaluated for impairment | $ 1,388,000 | $ 103,000 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 375,229,000 | $ 246,145,000 | |
General reserves to total loans collectively evaluated for impairment | 0.19% | 0.34% | |
Gross loans, excluding loan receivable held for sale | $ 376,617,000 | $ 246,248,000 | |
Total allowance to gross loans | 0.19% | 0.34% | |
Real estate loans | Construction | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 4,569,000 | $ 3,632,000 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 251,000 | 1,508,000 | |
Balance, at the end of the period | 4,820,000 | 5,140,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 4,820,000 | 5,140,000 | |
Loans individually evaluated for impairment | $ 0 | $ 11,000 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 504,708,000 | $ 301,323,000 | |
General reserves to total loans collectively evaluated for impairment | 0.96% | 1.71% | |
Gross loans, excluding loan receivable held for sale | $ 504,708,000 | $ 301,334,000 | |
Total allowance to gross loans | 0.96% | 1.71% | |
Real estate loans | Farmland | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 137,000 | $ 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | 238,000 | 92,000 | |
Balance, at the end of the period | 375,000 | 92,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 375,000 | 92,000 | |
Loans individually evaluated for impairment | $ 0 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 138,479,000 | $ 140,581,000 | |
General reserves to total loans collectively evaluated for impairment | 0.27% | 0.07% | |
Gross loans, excluding loan receivable held for sale | $ 138,479,000 | $ 140,581,000 | |
Total allowance to gross loans | 0.27% | 0.07% | |
Real estate loans | Land | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 993,000 | $ 198,000 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provisions for (reduction in) loan losses | (125,000) | 746,000 | |
Balance, at the end of the period | 868,000 | 944,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | $ 0 |
Amount of allowance attributed to: General portfolio allocation | 868,000 | 944,000 | |
Loans individually evaluated for impairment | $ 4,000 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 49,988,000 | $ 30,719,000 | |
General reserves to total loans collectively evaluated for impairment | 1.74% | 3.07% | |
Gross loans, excluding loan receivable held for sale | $ 49,992,000 | $ 30,719,000 | |
Total allowance to gross loans | 1.74% | 3.07% | |
Consumer Loans | Consumer loans | |||
Allocation of allowance as well as the activity in allowance | |||
Balance, at the beginning of the period | $ 95,000 | $ 20,000 | |
Charge-offs | (137,000) | 0 | |
Recoveries | 7,000 | 1,000 | |
Provisions for (reduction in) loan losses | 132,000 | 40,000 | |
Balance, at the end of the period | 97,000 | 61,000 | |
Other disclosures | |||
Amount of allowance attributed to: Specifically evaluated impaired loans | 0 | 0 | |
Amount of allowance attributed to: General portfolio allocation | 97,000 | 61,000 | |
Loans individually evaluated for impairment | $ 13,000 | $ 0 | |
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | |
Loans collectively evaluated for impairment | $ 114,723,000 | $ 6,228,000 | |
General reserves to total loans collectively evaluated for impairment | 0.08% | 0.98% | |
Gross loans, excluding loan receivable held for sale | $ 114,736,000 | $ 6,228,000 | |
Total allowance to gross loans | 0.08% | 0.98% | |
Owner Occupied Commercial Real Estate Loans Commercial And Industrial Loans And Small Business Administration Loans | |||
Allowance for Loan Losses | |||
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 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) | Jul. 01, 2018USD ($) | Nov. 01, 2017USD ($)notes | Aug. 31, 2014USD ($) | Mar. 31, 2004USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Apr. 01, 2017USD ($) |
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 | |||||||
Effective rate (as a percent) | 5.09% | 5.09% | |||||
Subordinated Debentures | Mission Community Capital Trust I | |||||||
Subordinated Debentures | |||||||
Effective rate (as a percent) | 5.29% | 5.29% | |||||
Floating rate junior subordinated debt | $ 2,800,000 | $ 2,800,000 | $ 3,100,000 | ||||
Purchase accounting fair value adjustments | $ 311,000 | ||||||
Subordinated Debentures | Santa Lucia Bancorp (CA) Capital Trust | |||||||
Subordinated Debentures | |||||||
Effective rate (as a percent) | 3.82% | 3.82% | |||||
Floating rate junior subordinated debt | $ 3,800,000 | $ 3,800,000 | 5,200,000 | ||||
Purchase accounting fair value adjustments | $ 1,300,000 | ||||||
Subordinated Debentures | Heritage Oaks Bancorp | |||||||
Subordinated Debentures | |||||||
Effective rate (as a percent) | 4.06% | 4.06% | |||||
Floating rate junior subordinated debt | $ 4,000,000 | $ 4,000,000 | $ 5,200,000 | ||||
Purchase accounting fair value adjustments | 1,300,000 | ||||||
Subordinated Debentures | Grandpoint Capital, Inc. | |||||||
Subordinated Debentures | |||||||
Effective rate (as a percent) | 5.28% | ||||||
Floating rate junior subordinated debt | 4,900,000 | $ 4,900,000 | |||||
Purchase accounting fair value adjustments | $ 228,000 | ||||||
Debt assumed in acquisition | $ 5,200,000 | ||||||
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 | LIBOR | Grandpoint Capital, Inc. | |||||||
Subordinated Debentures | |||||||
Floating interest rate, basis points added to base rate (as a percent) | 2.95% | ||||||
Subordinated Debentures | PPBI Trust I | |||||||
Subordinated Debentures | |||||||
Debt issued | $ 10,300,000 | ||||||
Minority interest purchased (as a percent) | 3.00% | ||||||
Amount of minority interest purchased | $ 310,000 | ||||||
Subordinated Notes 7.125% | Plaza Bancorp | |||||||
Subordinated Debentures | |||||||
Fixed interest rate (as a percent) | 7.125% | ||||||
Number of subordinated notes assumed | notes | 3 | ||||||
Debt assumed in acquisition | $ 25,000,000 | ||||||
Redemption price (as a percent) | 103.00% | ||||||
Redemption price, subsequent reduction (as a percent) | 0.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |||||
Weighted average stock options excluded (in shares) | 0 | 0 | 10,036 | 7,530 | 12,192 |
Net Income | |||||
Basic income available to common stockholders | $ 28,392 | $ 27,303 | $ 20,232 | $ 83,697 | $ 43,929 |
Diluted income available to common stockholders plus assumed conversions | $ 28,392 | $ 27,303 | $ 20,232 | $ 83,697 | $ 43,929 |
Shares | |||||
Basic income available to common stockholders (in shares) | 61,727,030 | 46,053,077 | 39,709,565 | 51,282,533 | 35,652,626 |
Dilutive effect of share-based compensation (in shares) | 634,774 | 649,891 | 776,549 | 683,114 | 803,319 |
Diluted income available to common stockholders plus assumed conversions (in shares) | 62,361,804 | 46,702,968 | 40,486,114 | 51,965,647 | 36,455,945 |
Per Share Amount | |||||
Basic income available to common stockholders (in dollars per share) | $ 0.46 | $ 0.59 | $ 0.51 | $ 1.63 | $ 1.23 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $ 0.46 | $ 0.58 | $ 0.50 | $ 1.61 | $ 1.20 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Fair Value Disclosures [Abstract] | |||
Specific reserve recorded on loan | $ 250,000 | $ 55,000 | $ 0 |
Principal balance of loan with specific reserve | $ 488,000 | $ 97,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value Estimates (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Investments held-to-maturity | $ 45,138 | $ 18,082 |
Investment securities available-for-sale, at fair value | 1,054,877 | 787,429 |
Accrued interest receivable | 37,683 | 27,060 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 263,212 | 197,164 |
Investments held-to-maturity | 0 | 0 |
Investment securities available-for-sale, at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Derivative assets | 0 | 0 |
Accrued interest receivable | 37,683 | 27,060 |
Liabilities: | ||
Deposit accounts | 7,193,880 | 5,001,053 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Derivative liabilities | 0 | 0 |
Accrued interest payable | 3,303 | 2,131 |
Level 1 | Interest-bearing time deposits with financial institutions | ||
Assets: | ||
Cash and cash equivalents | 6,386 | 6,633 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investments held-to-maturity | 45,138 | 18,082 |
Investment securities available-for-sale, at fair value | 1,054,877 | 787,429 |
Loans held for sale | 52,880 | 23,524 |
Loans held for investment, net | 0 | 0 |
Derivative assets | 3,272 | 1,135 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposit accounts | 1,310,444 | 1,074,564 |
FHLB advances | 859,622 | 489,823 |
Other borrowings | 2,350 | 46,373 |
Subordinated debentures | 122,177 | 115,159 |
Derivative liabilities | 3,272 | 1,135 |
Accrued interest payable | 0 | 0 |
Level 2 | Interest-bearing time deposits with financial institutions | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investments held-to-maturity | 0 | 0 |
Investment securities available-for-sale, at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held for investment, net | 8,694,408 | 6,269,366 |
Derivative assets | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposit accounts | 0 | 0 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Derivative liabilities | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 3 | Interest-bearing time deposits with financial institutions | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 263,212 | 197,164 |
Investments held-to-maturity | 46,385 | 18,291 |
Investment securities available-for-sale, at fair value | 1,054,877 | 787,429 |
FHLB, FRB and other stock | 112,649 | 65,881 |
Loans held for sale | 52,880 | 23,426 |
Loans held for investment, net | 8,759,204 | 6,167,288 |
Derivative assets | 3,858 | 1,135 |
Accrued interest receivable | 37,683 | 27,060 |
Liabilities: | ||
Deposit accounts | 8,502,145 | 6,085,886 |
FHLB advances | 859,622 | 490,148 |
Other borrowings | 2,350 | 46,139 |
Subordinated debentures | 110,244 | 105,123 |
Derivative liabilities | 3,858 | 1,135 |
Accrued interest payable | 3,303 | 2,131 |
Carrying Amount | Interest-bearing time deposits with financial institutions | ||
Assets: | ||
Cash and cash equivalents | 6,386 | 6,633 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 263,212 | 197,164 |
Investments held-to-maturity | 45,138 | 18,082 |
Investment securities available-for-sale, at fair value | 1,054,877 | 787,429 |
Loans held for sale | 52,880 | 23,524 |
Loans held for investment, net | 8,694,408 | 6,269,366 |
Derivative assets | 3,272 | 1,135 |
Accrued interest receivable | 37,683 | 27,060 |
Liabilities: | ||
Deposit accounts | 8,504,324 | 6,075,617 |
FHLB advances | 859,622 | 489,823 |
Other borrowings | 2,350 | 46,373 |
Subordinated debentures | 122,177 | 115,159 |
Derivative liabilities | 3,272 | 1,135 |
Accrued interest payable | 3,303 | 2,131 |
Estimated Fair Value | Interest-bearing time deposits with financial institutions | ||
Assets: | ||
Cash and cash equivalents | $ 6,386 | $ 6,633 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Hierarchy Table - Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets | ||
Investment securities available-for-sale, at fair value | $ 1,054,877 | $ 787,429 |
U.S. Treasury | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 59,343 | |
Agency | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 112,771 | 47,209 |
Corporate | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 101,594 | 79,546 |
Municipal bonds | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 231,201 | 232,128 |
Collateralized mortgage obligation: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 25,206 | 33,781 |
Mortgage-backed securities: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 524,762 | 394,765 |
Level 1 | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Derivative liabilities | 0 | 0 |
Level 2 | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 1,054,877 | 787,429 |
Derivative assets | 3,272 | 1,135 |
Financial liabilities | ||
Derivative liabilities | 3,272 | 1,135 |
Level 3 | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring basis | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 1,054,877 | 787,429 |
Derivative assets | 3,858 | 1,135 |
Financial liabilities | ||
Derivative liabilities | 3,858 | 1,135 |
Recurring basis | U.S. Treasury | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 59,343 | |
Recurring basis | Agency | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 112,771 | 47,209 |
Recurring basis | Corporate | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 101,594 | 79,546 |
Recurring basis | Municipal bonds | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 231,201 | 232,128 |
Recurring basis | Collateralized mortgage obligation: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 25,206 | 33,781 |
Recurring basis | Mortgage-backed securities: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 524,762 | 394,765 |
Recurring basis | Level 1 | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Level 1 | U.S. Treasury | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | |
Recurring basis | Level 1 | Agency | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Corporate | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Municipal bonds | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Collateralized mortgage obligation: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 1 | Mortgage-backed securities: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 2 | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 1,054,877 | 787,429 |
Derivative assets | 3,858 | 1,135 |
Financial liabilities | ||
Derivative liabilities | 3,858 | 1,135 |
Recurring basis | Level 2 | U.S. Treasury | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 59,343 | |
Recurring basis | Level 2 | Agency | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 112,771 | 47,209 |
Recurring basis | Level 2 | Corporate | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 101,594 | 79,546 |
Recurring basis | Level 2 | Municipal bonds | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 231,201 | 232,128 |
Recurring basis | Level 2 | Collateralized mortgage obligation: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 25,206 | 33,781 |
Recurring basis | Level 2 | Mortgage-backed securities: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 524,762 | 394,765 |
Recurring basis | Level 3 | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Level 3 | U.S. Treasury | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | |
Recurring basis | Level 3 | Agency | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Corporate | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Municipal bonds | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Collateralized mortgage obligation: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | 0 | 0 |
Recurring basis | Level 3 | Mortgage-backed securities: residential | ||
Financial assets | ||
Investment securities available-for-sale, at fair value | $ 0 | $ 0 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative assets, fair value | $ 3,858 | $ 1,135 |
Derivative liabilities, fair value | 3,858 | 1,135 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional | 61,642 | 58,599 |
Derivative assets, fair value | 3,858 | 1,135 |
Derivative liabilities, fair value | 3,858 | 1,135 |
Not Designated as Hedging Instrument | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Notional | 61,642 | 58,599 |
Derivative assets, fair value | 3,858 | 1,135 |
Derivative liabilities, fair value | $ 3,858 | $ 1,135 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Gross Amounts Recognized in the Consolidated Balance Sheets | $ 3,917 | $ 1,833 |
Gross Amounts Offset in the Consolidated Balance Sheets | (59) | (698) |
Net Amounts Presented in the Consolidated Balance Sheets | 3,858 | 1,135 |
Financial Instruments | 0 | 0 |
Cash Collateral | 0 | 0 |
Net Amount | 3,858 | 1,135 |
Financial liabilities: | ||
Gross Amounts Recognized in the Consolidated Balance Sheets | 3,858 | 1,135 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 3,858 | 1,135 |
Financial Instruments | 0 | 0 |
Cash Collateral | 0 | 0 |
Net Amount | 3,858 | 1,135 |
Not Designated as Hedging Instrument | ||
Financial assets: | ||
Gross Amounts Recognized in the Consolidated Balance Sheets | 3,917 | 1,833 |
Gross Amounts Offset in the Consolidated Balance Sheets | (59) | (698) |
Net Amounts Presented in the Consolidated Balance Sheets | 3,858 | 1,135 |
Financial Instruments | 0 | 0 |
Cash Collateral | 0 | 0 |
Net Amount | 3,858 | 1,135 |
Financial liabilities: | ||
Gross Amounts Recognized in the Consolidated Balance Sheets | 3,858 | 1,135 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 3,858 | 1,135 |
Financial Instruments | 0 | 0 |
Cash Collateral | 0 | 0 |
Net Amount | $ 3,858 | $ 1,135 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Company's Revenue Streams (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income: | |||||
Loans | $ 119,271 | $ 85,625 | $ 64,915 | $ 289,069 | $ 170,905 |
Investment securities and other interest-earning assets | 9,605 | 7,074 | 5,246 | 23,333 | 13,416 |
Total interest income | 128,876 | 92,699 | 70,161 | 312,402 | 184,321 |
Noninterest income: | |||||
Loan servicing fees | 400 | 292 | 276 | 1,037 | 641 |
Earnings on bank-owned life insurance | 1,270 | 617 | 629 | 2,498 | 1,654 |
Net gain from sales of loans | 2,029 | 3,843 | 3,439 | 8,830 | 9,137 |
Net gain from sales of investment securities | 1,063 | 330 | 896 | 1,399 | 2,989 |
Other income | 530 | 753 | 936 | 2,697 | 2,370 |
Total noninterest income | 7,544 | 8,151 | 8,221 | 23,361 | 21,663 |
Service charges on deposit accounts | |||||
Noninterest income: | |||||
Noninterest income | 874 | 1,057 | 946 | 3,081 | 2,153 |
Other service fee income | |||||
Noninterest income: | |||||
Noninterest income | 317 | 169 | 851 | 632 | 1,725 |
Debit card interchange fee income | |||||
Noninterest income: | |||||
Noninterest income | 1,061 | 1,090 | 248 | 3,187 | 994 |
Within Scope | |||||
Noninterest income: | |||||
Other income | (446) | 293 | 163 | 84 | 301 |
Total noninterest income | 1,806 | 2,609 | 2,208 | 6,984 | 5,173 |
Total revenues | 1,806 | 2,609 | 2,208 | 6,984 | 5,173 |
Within Scope | Service charges on deposit accounts | |||||
Noninterest income: | |||||
Noninterest income | 874 | 1,057 | 946 | 3,081 | 2,153 |
Within Scope | Other service fee income | |||||
Noninterest income: | |||||
Noninterest income | 317 | 169 | 851 | 632 | 1,725 |
Within Scope | Debit card interchange fee income | |||||
Noninterest income: | |||||
Noninterest income | 1,061 | 1,090 | 248 | 3,187 | 994 |
Out of Scope | |||||
Interest income: | |||||
Loans | 119,271 | 85,625 | 64,915 | 289,069 | 170,905 |
Investment securities and other interest-earning assets | 9,605 | 7,074 | 5,246 | 23,333 | 13,416 |
Total interest income | 128,876 | 92,699 | 70,161 | 312,402 | 184,321 |
Noninterest income: | |||||
Loan servicing fees | 400 | 292 | 276 | 1,037 | 641 |
Earnings on bank-owned life insurance | 1,270 | 617 | 629 | 2,498 | 1,654 |
Net gain from sales of loans | 2,029 | 3,843 | 3,439 | 8,830 | 9,137 |
Net gain from sales of investment securities | 1,063 | 330 | 896 | 1,399 | 2,989 |
Other income | 976 | 460 | 773 | 2,613 | 2,069 |
Total noninterest income | 5,738 | 5,542 | 6,013 | 16,377 | 16,490 |
Total revenues | $ 134,614 | $ 98,241 | $ 76,174 | $ 328,779 | $ 200,811 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Oct. 26, 2018 | Jun. 30, 2012 |
2012 Stock Repurchase Program | ||
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount (up to) | $ 1,000,000 | |
Subsequent Event | 2018 Stock Repurchase Program | ||
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount (up to) | $ 100,000,000 | |
Subsequent Event | 2012 Stock Repurchase Program | ||
Subsequent Event [Line Items] | ||
Aggregate shares repurchased under program | 237,455 |