Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 24, 2014 | Jun. 28, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'PACWEST BANCORP | ' | ' |
Entity Central Index Key | '0001102112 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1.20 |
Entity Common Stock, Shares Outstanding | ' | 44,690,144 | ' |
Entity Common Stock, Shares Outstanding Unvested Restricted | ' | 1,087,436 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $96,424 | $89,011 |
Interest-earning deposits in financial institutions | 50,998 | 75,393 |
Total cash and cash equivalents | 147,422 | 164,404 |
Securities available-for-sale, at fair value ($37,904 and $44,684 covered by FDIC loss sharing at December 31, 2013 and 2012) | 1,494,745 | 1,355,385 |
Federal Home Loan Bank stock, at cost | 27,939 | 37,126 |
Total investment securities | 1,522,684 | 1,392,511 |
Loans and leases, net of unearned income ($448,418 and $543,327 covered by FDIC loss sharing at December 31, 2013 and 2012) | 4,312,352 | 3,590,297 |
Allowance for loan and lease losses ($21,793 and $26,069 for loans covered by FDIC loss sharing at December 31, 2013 and 2012) | -82,034 | -91,968 |
Total loans and leases, net | 4,230,318 | 3,498,329 |
Other real estate owned, net ($9,036 and $22,842 covered by FDIC loss sharing at December 31, 2013 and 2012) | 51,837 | 56,414 |
Premises and equipment, net | 32,435 | 19,503 |
FDIC loss sharing asset | 45,524 | 57,475 |
Cash surrender value of life insurance | 77,489 | 68,326 |
Goodwill | 208,743 | 79,866 |
Core deposit and customer relationship intangibles, net | 17,248 | 14,723 |
Other assets | 199,663 | 112,107 |
Total assets | 6,533,363 | 5,463,658 |
LIABILITIES | ' | ' |
Noninterest-bearing deposits | 2,318,446 | 1,939,212 |
Interest-bearing deposits | 2,962,541 | 2,769,909 |
Total deposits | 5,280,987 | 4,709,121 |
Borrowings | 113,726 | 12,591 |
Subordinated debentures | 132,645 | 108,250 |
Discontinued operations | 123,028 | ' |
Accrued interest payable and other liabilities | 73,884 | 44,575 |
Total liabilities | 5,724,270 | 4,874,537 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.01 par value; authorized 5,000,000 shares; none issued and outstanding | ' | ' |
Common stock, $0.01 par value; authorized 75,000,000 shares; issued 46,526,124 and 37,772,559 shares at December 31, 2013 and 2012 (includes 1,216,524 and 1,698,281 shares of unvested restricted stock, respectively) | 465 | 377 |
Additional paid-in capital | 1,286,737 | 1,062,184 |
Accumulated deficit | -454,422 | -499,537 |
Treasury stock, at cost; 703,290 and 351,650 shares at December 31, 2013 and 2012 | -20,340 | -6,803 |
Accumulated other comprehensive income | -3,347 | 32,900 |
Total stockholders' equity | 809,093 | 589,121 |
Total liabilities and stockholders' equity | $6,533,363 | $5,463,658 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Securities available-for-sale, covered by FDIC loss sharing (in dollars) | $37,904 | $44,684 |
Loans and leases, covered by FDIC loss sharing (in dollars) | 448,418 | 543,327 |
Allowance for loan and lease, covered by FDIC loss sharing (in dollars) | 21,793 | 26,069 |
Other real estate owned, covered by FDIC loss sharing (in dollars) | $9,036 | $22,842 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 75,000,000 | 75,000,000 |
Common stock, issued shares | 46,526,124 | 37,772,559 |
Common stock, unvested restricted stock | 1,216,524 | 1,698,281 |
Treasury stock, at cost, shares | 703,290 | 351,650 |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INTEREST INCOME: | ' | ' | ' |
Loans and leases | $272,726 | $260,230 | $260,143 |
Investment securities | 36,923 | 35,657 | 34,785 |
Deposits in financial institutions | 265 | 228 | 356 |
Total interest income | 309,914 | 296,115 | 295,284 |
INTEREST EXPENSE: | ' | ' | ' |
Deposits | 7,868 | 13,271 | 20,649 |
Borrowings | 537 | 2,656 | 7,071 |
Subordinated debentures | 3,796 | 3,721 | 4,923 |
Total interest expense | 12,201 | 19,648 | 32,643 |
Net interest income | 297,713 | 276,467 | 262,641 |
PROVISION (NEGATIVE PROVISION) FOR CREDIT LOSSES | -4,210 | -12,819 | 26,570 |
Net interest income after provision for credit losses | 301,923 | 289,286 | 236,071 |
NONINTEREST INCOME: | ' | ' | ' |
Service charges on deposit accounts | 11,765 | 12,852 | 13,829 |
Other commissions and fees | 8,416 | 8,126 | 7,616 |
Gain on sale of leases | 1,791 | 2,767 | ' |
Gain on sale of securities | 137 | 1,239 | ' |
Acquisition-related securities gain | 5,222 | ' | ' |
Other-than-temporary-impairment losses on covered securities | ' | -1,115 | ' |
Increase in cash surrender value of life insurance | 1,164 | 1,264 | 1,443 |
FDIC loss sharing income (expense), net | -26,172 | -10,070 | 7,776 |
Other income | 1,921 | 809 | 762 |
Total noninterest income | 4,244 | 15,872 | 31,426 |
NONINTEREST EXPENSE: | ' | ' | ' |
Compensation | 107,067 | 94,967 | 86,800 |
Accelerated vesting of restricted stock | 12,420 | ' | ' |
Occupancy | 29,459 | 28,113 | 28,685 |
Data processing | 9,494 | 9,120 | 8,964 |
Other professional services | 9,481 | 8,367 | 8,986 |
Business development | 3,282 | 2,538 | 2,321 |
Communications | 2,923 | 2,523 | 3,011 |
Insurance and assessments | 5,596 | 5,284 | 7,171 |
Non-covered other real estate owned, net | 330 | 4,150 | 7,010 |
Covered other real estate owned, net | -1,833 | 6,781 | 3,666 |
Intangible asset amortization | 5,402 | 6,326 | 8,428 |
Acquisition and integration | 28,392 | 4,089 | 600 |
Debt termination | ' | 22,598 | ' |
Other expense | 18,674 | 16,806 | 14,351 |
Total noninterest expense | 230,687 | 211,662 | 179,993 |
Earnings from continuing operations before income taxes | 75,480 | 93,496 | 87,504 |
Income tax expense | -30,003 | -36,695 | -36,800 |
NET EARNINGS FROM CONTINUING OPERATIONS | 45,477 | 56,801 | 50,704 |
Earnings from discontinued operations before income taxes | -620 | ' | ' |
Income tax expense | 258 | ' | ' |
NET EARNINGS FROM DISCONTINUED OPERATIONS | -362 | ' | ' |
NET EARNINGS | $45,115 | $56,801 | $50,704 |
Basic earnings per share: | ' | ' | ' |
Net earnings from continuing operations (in dollars per share) | $1.09 | $1.54 | $1.37 |
Net earnings (in dollars per share) | $1.08 | $1.54 | $1.37 |
Diluted earnings per share: | ' | ' | ' |
Net earnings from continuing operations (in dollars per share) | $1.09 | $1.54 | $1.37 |
Net earnings (in dollars per share) | $1.08 | $1.54 | $1.37 |
Dividends declared per share (in dollars per share) | $1 | $0.79 | $0.21 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net earnings | $45,115 | $56,801 | $50,704 |
Other comprehensive income (loss) related to unrealized gains and (losses) on securities available-for-sale: | ' | ' | ' |
Unrealized holding gains (losses) arising during the period | -57,136 | 17,532 | 32,473 |
Income tax (expense) benefit related to unrealized holding gains (losses) arising during the period | 26,190 | -7,363 | -13,639 |
Reclassification adjustment for net gains included in net earnings | -5,359 | -124 | ' |
Income tax expense related to reclassification adjustment | 58 | 52 | ' |
Other comprehensive (loss) income | -36,247 | 10,097 | 18,834 |
COMPREHENSIVE INCOME | $8,868 | $66,898 | $69,538 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $478,797 | $369 | $1,085,364 | ($607,042) | ($3,863) | $3,969 |
Balance (in shares) at Dec. 31, 2010 | ' | 36,672,429 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net earnings | 50,704 | ' | ' | 50,704 | ' | ' |
Other comprehensive income (loss) - net unrealized gain on securities available-for-sale, net of tax | 18,834 | ' | ' | ' | ' | 18,834 |
Tax effect from vesting of restricted stock | -937 | ' | -937 | ' | ' | ' |
Restricted stock awarded and earned stock compensation, net of shares forfeited | 7,896 | 6 | 7,890 | ' | ' | ' |
Restricted stock awarded and earned stock compensation, net of shares forfeited (in shares) | ' | 662,062 | ' | ' | ' | ' |
Restricted stock surrendered | -1,465 | ' | ' | ' | -1,465 | ' |
Restricted stock surrendered (in shares) | ' | -80,173 | ' | ' | ' | ' |
Cash dividends paid ($1.00, $0.79 and $0.21 per share for the years ended 2013, 2012 and 2011, respectively) | -7,626 | ' | -7,626 | ' | ' | ' |
Balance at Dec. 31, 2011 | 546,203 | 375 | 1,084,691 | -556,338 | -5,328 | 22,803 |
Balance (in shares) at Dec. 31, 2011 | ' | 37,254,318 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net earnings | 56,801 | ' | ' | 56,801 | ' | ' |
Other comprehensive income (loss) - net unrealized gain on securities available-for-sale, net of tax | 10,097 | ' | ' | ' | ' | 10,097 |
Tax effect from vesting of restricted stock | 283 | ' | 283 | ' | ' | ' |
Restricted stock awarded and earned stock compensation, net of shares forfeited | 5,999 | 2 | 5,997 | ' | ' | ' |
Restricted stock awarded and earned stock compensation, net of shares forfeited (in shares) | ' | 230,272 | ' | ' | ' | ' |
Restricted stock surrendered | -1,475 | ' | ' | ' | -1,475 | ' |
Restricted stock surrendered (in shares) | ' | -63,681 | ' | ' | ' | ' |
Cash dividends paid ($1.00, $0.79 and $0.21 per share for the years ended 2013, 2012 and 2011, respectively) | -28,787 | ' | -28,787 | ' | ' | ' |
Balance at Dec. 31, 2012 | 589,121 | 377 | 1,062,184 | -499,537 | -6,803 | 32,900 |
Balance (in shares) at Dec. 31, 2012 | ' | 37,420,909 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net earnings | 45,115 | ' | ' | 45,115 | ' | ' |
Other comprehensive income (loss) - net unrealized gain on securities available-for-sale, net of tax | -36,247 | ' | ' | ' | ' | -36,247 |
Issuance of common stock for acquisition of First California Financial Group, Inc. | 242,268 | 84 | 242,184 | ' | ' | ' |
Issuance of common stock for acquisition of First California Financial Group, Inc. (in shares) | ' | 8,403,119 | ' | ' | ' | ' |
Tax effect from vesting of restricted stock | 2,133 | ' | 2,133 | ' | ' | ' |
Restricted stock awarded and earned stock compensation, net of shares forfeited | 21,246 | 4 | 21,242 | ' | ' | ' |
Restricted stock awarded and earned stock compensation, net of shares forfeited (in shares) | ' | 350,446 | ' | ' | ' | ' |
Restricted stock surrendered | -13,537 | ' | ' | ' | -13,537 | ' |
Restricted stock surrendered (in shares) | ' | -351,640 | ' | ' | ' | ' |
Cash dividends paid ($1.00, $0.79 and $0.21 per share for the years ended 2013, 2012 and 2011, respectively) | -41,006 | ' | -41,006 | ' | ' | ' |
Balance at Dec. 31, 2013 | $809,093 | $465 | $1,286,737 | ($454,422) | ($20,340) | ($3,347) |
Balance (in shares) at Dec. 31, 2013 | ' | 45,822,834 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ' | ' | ' |
Cash dividends paid, per share (in dollars per share) | $1 | $0.79 | $0.21 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net earnings | $45,115 | $56,801 | $50,704 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 31,509 | 25,792 | 20,084 |
(Negative provision) provision for credit losses | -4,210 | -12,819 | 26,570 |
Gain on sale of other real estate owned | -5,201 | -5,786 | -9,140 |
Provision for losses and valuation adjustments on other real estate owned | 2,515 | 14,333 | 16,994 |
Gain on sale of leases | -1,791 | -2,767 | ' |
(Gain) loss on sale of premises and equipment | -21 | 155 | -23 |
Gain on branch sale | ' | -297 | ' |
Gain on sale of securities | -137 | -1,239 | ' |
Acquisition-related securities gain | -5,222 | ' | ' |
Other-than-temporary impairment losses on covered securities | ' | 1,115 | ' |
Earned stock compensation | 21,246 | 5,999 | 7,896 |
Tax effect included in stockholders' equity of restricted stock vesting | -2,133 | -283 | 937 |
Increase (decrease) in accrued and deferred income taxes, net | 2,198 | -3,737 | 17,694 |
Decrease in FDIC loss sharing asset | 29,192 | 37,712 | 21,165 |
(Increase) decrease in other assets | -9,403 | 18,754 | 18,053 |
Decrease in accrued interest payable and other liabilities | -53,405 | -15,753 | -661 |
Net cash provided by operating activities | 50,252 | 117,980 | 170,273 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Resolution of goodwill matter with FDIC | ' | ' | 7,636 |
Net cash and cash equivalents acquired (used) in acquisitions | 273,013 | -87,098 | ' |
Net cash used in branch sale | ' | -119,756 | ' |
Net decrease in loans and leases | 275,740 | 232,549 | 450,492 |
Proceeds from sales of loans and leases | 33,824 | 58,691 | 2,495 |
Securities available-for-sale: | ' | ' | ' |
Proceeds from maturities and paydowns | 306,536 | 415,854 | 231,898 |
Proceeds from sales | 22,415 | 90,745 | ' |
Purchases | -550,211 | -485,860 | -658,310 |
Net redemptions of Federal Home Loan Bank stock | 18,705 | 10,392 | 8,934 |
Proceeds from sale of other real estate owned | 36,490 | 59,614 | 61,954 |
Capitalized costs to complete other real estate owned | ' | ' | -125 |
Purchases of premises and equipment, net | -3,604 | -4,914 | -5,936 |
Proceeds from sales of premises and equipment | 31 | 704 | 27 |
Net cash provided by investing activities | 412,939 | 170,921 | 99,065 |
Net increase (decrease) in deposits: | ' | ' | ' |
Noninterest-bearing | 18,068 | 271,934 | 220,237 |
Interest-bearing | -547,081 | -234,608 | -292,482 |
Net increase (decrease) in borrowings | 101,250 | -228,107 | ' |
Redemption of subordinated debentures | ' | -18,558 | ' |
Repayment of acquired debt | ' | -180,796 | ' |
Tax effect included in stockholders' equity of restricted stock vesting | 2,133 | 283 | -937 |
Restricted stock surrendered | -13,537 | -1,475 | -1,465 |
Cash dividends paid | -41,006 | -28,787 | -7,626 |
Net cash used in financing activities | -480,173 | -420,114 | -82,273 |
Net (decrease) increase in cash and cash equivalents | -16,982 | -131,213 | 187,065 |
Cash and cash equivalents at beginning of year | 164,404 | 295,617 | 108,552 |
Cash and cash equivalents at end of year | 147,422 | 164,404 | 295,617 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid during the year for interest | 13,275 | 21,614 | 33,000 |
Cash paid during the year for income taxes, net of refunds | 27,665 | 40,772 | 19,083 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' | ' |
Transfer of loans to other real estate owned | 15,416 | 40,207 | 68,683 |
Common stock issued for First California Financial Group acquisition | $242,268 | ' | ' |
NATURE_OF_OPERATIONS_AND_SUMMA
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 1—NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
PacWest Bancorp is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. Our principal business is to serve as a holding company for our Los Angeles-based wholly owned banking subsidiary, Pacific Western Bank, which we refer to as "Pacific Western" or the "Bank." When we say "we," "our" or the "Company," we mean the Company on a consolidated basis with the Bank. When we refer to "PacWest" or to the holding company, we are referring to the parent company on a stand-alone basis. | |
We have completed 26 acquisitions from May 2000 through December 31, 2013, including the merger whereby the former Rancho Santa Fe National Bank and First Community Bank of the Desert became wholly-owned subsidiaries of the Company in a pooling-of-interests transaction completed in May 2000. All other acquisitions have been accounted for using the acquisition method of accounting and, accordingly, the operating results of the acquired entities have been included in the consolidated financial statements from their respective dates of acquisition. During the three years ended December 31, 2013, we completed the following four acquisitions: Pacific Western Equipment Finance, or EQF, which closed on January 3, 2012; Celtic Capital Corporation, or Celtic, which closed on April 3, 2012; American Perspective Bank, or APB, which closed on August 1, 2012; and First California Financial Group, or FCAL, which closed on May 31, 2013. See Note 4, Acquisitions, and Note 5, Goodwill and Other Intangible Assets, for more information about these acquisitions | |
Pacific Western is a full-service commercial bank offering a broad range of banking products and services including: accepting demand, money market, and time deposits; originating loans and leases, including commercial, real estate construction, equipment finance leases, SBA guaranteed and consumer loans; and providing other business-oriented products. Our operations are primarily located in Southern California extending from San Diego County to California's Central Coast; we also operate three banking offices in the San Francisco Bay area, a leasing operation based in Utah, and asset-based lending operations based in Arizona as well as San Jose and Santa Monica, California. The Bank focuses on conducting business with small to medium sized businesses in our marketplace and the owners and employees of those businesses. The majority of our loans are secured by the real estate collateral of such businesses. Our asset-based lending function operates in Arizona, California, Texas, Colorado, Minnesota, and the Pacific Northwest. Our equipment leasing function has lease receivables in 45 states. | |
We generate our revenue primarily from interest received on loans and leases and, to a lesser extent, from interest received on investment securities, and fees received in connection with deposit services, extending credit and other services offered, including foreign exchange services. Our major operating expenses are the interest paid by the Bank on deposits and borrowings, compensation and general operating expenses. The Bank relies on a foundation of locally generated and relationship-based deposits. The Bank has a relatively low cost of funds due to a high percentage of noninterest-bearing and low cost deposits. | |
Our operations, like those of other financial institutions operating in Southern California, are significantly influenced by economic conditions in Southern California, including local economies, the strength of the real estate market, and the fiscal and regulatory policies of the federal and state government and the regulatory authorities that govern financial institutions. Through our offices located in Northern California, our asset-based lending operations with production and marketing offices located in Arizona, Northern California, Texas, Colorado, Minnesota and the Pacific Northwest, and our equipment leasing operations located in Utah, we are also subject to the economic conditions affecting these markets. No individual or single group of related accounts is considered material in relation to our total assets or deposits of the Bank, or in relation to the overall business of the Company. However, 70% of our total gross non-covered and covered loan portfolio at December 31, 2013 consisted of real estate loans. | |
A downturn or deterioration in the real estate market could materially and adversely affect our business because a significant portion of our loans is secured by real estate. Our ability to recover on defaulted loans by selling the real estate collateral would then be diminished and we would be more likely to suffer losses on defaulted loans. Substantially all of our real property collateral is located in Southern California. Consequently, the ability of our borrowers to repay their loans and our results of operations and financial condition are dependent upon the general trends in the Southern California economies and, in particular, the residential and commercial real estate markets. | |
Real estate values could be affected by, among other things, a worsening of economic conditions, an increase in foreclosures, a decline in home sale volumes, an increase in interest rates, earthquakes and other natural disasters particular to California. Further, we may experience an increase in the number of borrowers who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to us given a sustained weakness or weakening in business and economic conditions generally or specifically in the principal markets in which we do business. An increase in the number of delinquencies, bankruptcies or defaults could result in a higher level of nonperforming assets, net charge-offs and provision for credit losses. | |
(a) Basis of Presentation | |
The accounting and reporting policies of the Company are in accordance with U.S. generally accepted accounting principles, which we may refer to as U.S. GAAP. All significant intercompany balances and transactions have been eliminated. | |
(b) Use of Estimates | |
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. Actual results could differ from those estimates. Material estimates subject to change in the near term include, among other items, the allowance for credit losses, the carrying value of intangible assets, the carrying value of the FDIC loss sharing asset, and the realization of deferred tax assets. | |
As described in Note 4, Acquisitions, below, we completed the acquisition of FCAL on May 31, 2013. The acquired assets and liabilities of FCAL were measured at their estimated fair values. Management made significant estimates and exercised significant judgment in estimating fair values and accounting for the acquired assets and assumed liabilities of FCAL. | |
(c) Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period's presentation format. Starting with the June 30, 2013 quarter-end, loan tables presented non-purchased credit impaired ("Non-PCI") and purchased credit impaired ("PCI") loan categories in addition to covered and non-covered loan information. Previously the loan tables only presented covered and non-covered loan categories. | |
(d) Cash and Cash Equivalents | |
For purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash, due from banks, and interest-earning deposits in financial institutions. Interest-earning assets in financial institutions represent cash held at the Federal Reserve Bank of San Francisco ("FRBSF"), the majority of which is immediately available. | |
(e) Investment Securities | |
We determine the classification of securities at the time of purchase. If we have the intent and the ability at the time of purchase to hold securities until maturity, they are classified as held-to-maturity. Investment securities held-to-maturity are stated at amortized cost. Securities to be held for indefinite periods of time, but not necessarily to be held-to-maturity or on a long-term basis, are classified as available-for-sale and carried at estimated fair value, with unrealized gains or losses reported as a separate component of stockholders' equity in accumulated other comprehensive income, net of applicable income taxes. Securities available-for-sale include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in interest rates, prepayment risk, and other related factors. Securities are individually evaluated for appropriate classification when acquired; consequently, similar types of securities may be classified differently depending on factors existing at the time of purchase. | |
The carrying values of all securities are adjusted for amortization of premiums and accretion of discounts over the period to maturity of the related security using the interest method. Realized gains or losses on the sale of securities, if any, are determined using the amortized cost of the specific securities sold. If a decline in the fair value of a security below its amortized cost is judged by management to be other than temporary, the cost basis of the security is written down to its fair value and the amount of the write-down is recognized through a charge to earnings. | |
Investments in Federal Home Loan Bank of San Francisco, or FHLB, stock are carried at cost and evaluated regularly for impairment. FHLB stock is expected to be redeemed at an amount not to exceed par and is a required investment based on measurements of the Bank's assets and/or borrowing levels. | |
(f) Loans and Leases Held for Sale and Servicing Assets | |
Loans and leases held for sale include loans and leases originated or purchased for resale. Loans and leases originated or purchased for resale include the principal amount outstanding net of unearned income, and are carried at the lower of cost or fair value on an aggregate basis. A decline in the aggregate fair value of the loans below their aggregate carrying amount is recognized through a charge to earnings in the period of such decline. Unearned income on these loans and leases is taken into earnings when they are sold. At December 31, 2013 and 2012, the Company had no loans or leases held for sale. | |
Gains or losses resulting from sales of loans and leases are recognized at the date of settlement and are based on the difference between the cash received and the carrying value of the related loans or leases less related transaction costs. A transfer of financial assets in which control is surrendered is accounted for as a sale to the extent that consideration other than beneficial interests in the transferred assets is received in the exchange. Assets, liabilities, derivative financial instruments or other retained interests issued or obtained through the sale of financial assets are measured at estimated fair value, if practicable. Lease sales where we keep part of the lease payment stream are accounted for as non-recourse borrowings. | |
The most common retained interest related to loan sales is a servicing asset. Servicing assets are amortized in proportion to and over the period of estimated future net servicing income. The amortization of the servicing asset and the servicing income are included in noninterest income in the consolidated statement of earnings. The fair value of the servicing assets is estimated by discounting the future cash flows using market-based discount rates and prepayment speeds. Our servicing asset is evaluated regularly for impairment. We stratify the servicing asset based on the original term to maturity and the year of origination of the underlying loans for purposes of measuring impairment. The risk is that loans prepay faster than anticipated and the fair value of the asset declines. If the fair value of the servicing asset is less than the amortized carrying value, the asset is considered impaired and an impairment charge will be taken against earnings. | |
At December 31, 2013 and 2012, the servicing asset totaled $807,000 and $1.0 million, respectively, and related to the servicing of approximately $65.0 million and $62.7 million in SBA loans, respectively. The servicing asset is included in other assets on the consolidated balance sheets. All loans sold after December 31, 2008, were sold on a servicing released basis. | |
(g) Loans and Leases | |
Originated loans. Loans are originated by the Company with the intent to hold them for investment and are stated at the principal amount outstanding, net of unearned income. Unearned income includes deferred unamortized nonrefundable loan fees and direct loan origination costs. Net deferred fees or costs are recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income when the related loans are paid off or sold. The amortization of loan fees or costs is discontinued when a loan is placed on nonaccrual status. Interest income is recorded on an accrual basis in accordance with the terms of the respective loan and includes prepayment penalties. | |
Purchased loans. Purchased loans are stated at the principal amount outstanding, net of unearned discounts or unamortized premiums. All loans acquired in our acquisitions are initially measured and recorded at their fair value on the acquisition date. A component of the initial fair value measurement is an estimate of the credit losses over the life of the purchased loans. Purchased loans are also evaluated for impairment as of the acquisition date and are accounted for as "acquired non-impaired" or "purchased credit impaired" loans. | |
Acquired non-impaired loans. Acquired non-impaired loans are those loans for which there was no evidence of credit deterioration at their acquisition date and it was probable that we would be able to collect all contractually required payments. Acquired non-impaired loans, together with originated loans, are referred to as non-purchased credit impaired ("Non-PCI") loans. Purchase discount or premium on acquired non-impaired loans is recognized as an adjustment to interest income over the contractual life of such loans using the effective interest method or taken into income when the related loans are paid off or sold. | |
Purchased credit impaired loans. Purchased credit impaired ("PCI") loans are accounted for in accordance with ASC Subtopic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality." A purchased loan is deemed to be credit impaired when there is evidence of credit deterioration since its origination and it is probable at the acquisition date that we would be unable to collect all contractually required payments. We apply PCI loan accounting when (i) we acquire loans deemed to be impaired, and (ii) as a general policy election for non-impaired loans that we acquire in a distressed bank acquisition. | |
For PCI loans, at the time of acquisition we (i) calculated the contractual amount and timing of undiscounted principal and interest payments (the "undiscounted contractual cash flows") and (ii) estimated the amount and timing of undiscounted expected principal and interest payments (the "undiscounted expected cash flows"). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loan portfolios; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. | |
The excess of expected cash flows at acquisition over the initial fair value of acquired impaired loans is referred to as the "accretable yield" and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. If the timing of cash flows is uncertain, any cash payments will be recognized when received. | |
As part of the fair value process and the subsequent accounting, the Company aggregates PCI loans into pools having common credit risk characteristics such as type and risk rating. Increases in expected cash flows over those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in the amount and changes in the timing of expected cash flows compared to those previously estimated decrease the accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses. As the accretable yield increases or decreases from changes in cash flow expectations, the offset is a decrease or increase to the nonaccretable difference. The accretable yield is measured at each financial reporting date based on information then currently available and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. | |
PCI loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual with interest income recognized on either a cash basis or as a reduction of the principal amount outstanding. | |
Covered loans. We refer to loans that are covered by loss sharing agreements with the Federal Deposit Insurance Corporation ("FDIC") as covered loans. Our covered loans include loans that we acquired in the Los Padres and Affinity acquisitions, and through the FCAL acquisition, loans for which we assumed the loss sharing agreements between First California Bank ("FCB") and the FDIC related to FCB's acquisitions of Western Commercial Bank ("Western Commercial") and San Luis Trust Bank ("San Luis"). We will be reimbursed for a substantial portion of any future losses on such loans under the terms of the FDIC loss sharing agreements. The FDIC loss sharing asset related to covered loans is reported separately in the balance sheet. See "—FDIC Loss Sharing Asset." | |
When we refer to non-covered loans, we are referring to loans not covered by our loss sharing agreements with the FDIC. | |
We apply acquired impaired loan accounting to the majority of the covered loans as such covered loans were deemed to be impaired on the acquisition date. We apply acquired non-impaired loan accounting to covered revolving credit agreements, mainly home equity loans and commercial asset-based lines of credit, where the borrower had revolving privileges. | |
Leases. Leases are recorded as direct financing (capital) leases for accounting purposes. Lease receivables are recorded on the balance sheet but the leased property is not, although we generally retain legal title to the leased property until the end of each lease. Leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized over the weighted average life of the lease portfolio. Leases acquired in an acquisition are initially measured and recorded at their fair value on the acquisition date. Purchase discount or premium on acquired leases is recognized as an adjustment to interest income over the contractual life of the leases using the effective interest method or taken into income when the related leases are paid off. | |
Leases in process. We offer "progress funding" which works similarly to a bridge loan by financing an item to be leased during the construction or build phase. Lessees pay interest on the amount advanced to fund a project at an interest rate implicit in the master lease agreement; such income is deferred until the project funding is complete. The amount of funding advanced during the progress funding period is recorded in other assets. At the end of the progress funding period, we either (i) enter into a lease agreement with the lessee and the deferred income is accreted to interest income using an effective yield method over the life of the lease, or (ii) sell the lease to a third party lender and recognize the deferred income as part of any gain or loss on such sale. | |
Delinquent or past due loans and leases. Loans and leases are considered delinquent when principal or interest payments are past due 30 days or more; delinquent loans may remain on accrual status between 30 days and 89 days past due. | |
Nonaccrual loans and leases. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability in the normal course of business. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan's principal balance is deemed collectable. Loans are restored to accrual status when the loans become both well-secured and are in the process of collection. Leases are designated as nonaccrual leases when the recognition of interest has been discontinued. The recognition of interest on leases is discontinued when a lessee's payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability. Interest on nonaccrual leases is subsequently recognized only to the extent that cash is received and the lease balance is deemed collectable. Leases are restored to accrual status when the leases become both well secured and are in the process of collection. | |
Impaired loans and leases. A loan or lease is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan or lease agreement. Impaired loans and leases include loans and leases on nonaccrual status and performing restructured loans. Income from impaired loans is recognized on an accrual basis unless the loan is on nonaccrual status. Income from loans on nonaccrual status is recognized to the extent cash is received and when the loan's principal balance is deemed collectable. We measure impairment of a loan by using the estimated fair value of the collateral, less estimated costs to sell, including senior obligations such as delinquent property taxes, if the loan is collateral-dependent and the present value of the expected future cash flows discounted at the loan's effective interest rate if the loan is not collateral-dependent. The impairment amount on a collateral-dependent loan is charged-off to the allowance and the impairment amount on a loan that is not collateral-dependent is set up as a specific reserve. We measure impairment of a lease based upon the present value of the scheduled lease and residual cash flows, discounted at the lease's effective interest rate. | |
Troubled debt restructurings. A loan is classified as a troubled debt restructuring when we grant a concession to a borrower experiencing financial difficulties. These concessions may include a reduction of the interest rate, principal or accrued interest, extension of the maturity date or other actions intended to minimize potential losses. All loan modifications are evaluated on an individual basis to determine whether such modifications meet the criteria to be classified as a troubled debt restructuring under ASC Subtopic 310-40, "Troubled Debt Restructurings by Creditors." Loans restructured at a rate equal to or greater than that of a new loan with comparable risk at the time the loan is modified may be excluded from restructured loan disclosures in years subsequent to the restructuring if the loans are in compliance with their modified terms. | |
A loan that has been placed on nonaccrual status that is subsequently restructured will usually remain on nonaccrual status until the borrower is able to demonstrate repayment performance in compliance with the restructured terms for a sustained period, typically for six months. A restructured loan may return to accrual status sooner based on other significant events or mitigating circumstances. A loan that has not been placed on nonaccrual status may be restructured and such loan may remain on accrual status after such restructuring. In these circumstances, the borrower has made payments before and after the restructuring. Generally, this restructuring involves a reduction in the loan interest rate and/or a change to interest-only payments for a period of time. The restructured loan is considered impaired despite the accrual status and a specific reserve is calculated based on the present value of expected cash flows discounted at the loan's original effective interest rate. | |
(h) Allowances for Credit Losses | |
Allowance for credit losses on Non-PCI loans and leases. The allowance for credit losses on Non-PCI loans and leases is the combination of the allowance for loan and lease losses and the reserve for unfunded loan commitments. The allowance for loan and lease losses is reported as a reduction of outstanding loan and lease balances and the reserve for unfunded loan commitments is included within other liabilities. Generally, as loans are funded, the amount of the commitment reserve applicable to such funded loans is transferred from the reserve for unfunded loan commitments to the allowance for loan and lease losses based on our allowance methodology. The following discussion is for Non-PCI loans and leases and the allowance for credit losses thereon. Refer to "Allowance for Credit Losses on PCI Loans" for the policy on PCI loans. | |
The allowance for loan and lease losses is maintained at a level deemed appropriate by management to adequately provide for known and inherent risks in the loan and lease portfolio and other extensions of credit at the balance sheet date. The allowance is based upon a continuing review of the portfolio, past loan and lease loss experience, current economic conditions that may affect the borrowers' ability to pay, and the underlying collateral value of the loans and leases. Loans and leases that are deemed to be uncollectable are charged off and deducted from the allowance. The provision for loan and lease losses and recoveries on loans and leases previously charged off are added to the allowance. | |
The methodology we use to estimate the amount of our allowance for credit losses is based on both objective and subjective criteria. While some criteria are formula driven, other criteria are subjective inputs included to capture environmental and general economic risk elements which may trigger losses in the loan and lease portfolios, and to account for the varying levels of credit quality in the loan and lease portfolios of the entities we have acquired that have not yet been captured in our objective loss factors. | |
Specifically, our allowance methodology contains three key elements: (i) amounts based on specific evaluations of impaired loans and leases; (ii) amounts of estimated losses on several pools of loans categorized by risk rating and loan and lease type; and (iii) amounts for environmental and general economic factors that indicate probable losses incurred but not captured through the other elements of our allowance process. In addition, for loans and leases measured at fair value on the acquisition date and deemed to be non-impaired, our allowance methodology captures deterioration in credit quality and other inherent risks of such acquired assets experienced after the purchase date. | |
Impaired loans and leases are identified at each reporting date based on certain criteria and the majority of which are individually reviewed for impairment. Non-PCI nonaccrual loans and leases with an unpaid principal balance over $250,000 and all performing restructured loans are reviewed individually for the amount of impairment. Non-PCI nonaccrual loans and leases with an unpaid principal balance of $250,000 or less are evaluated for impairment collectively. A loan or lease is considered impaired when it is probable that we will be unable to collect all amounts due according to the original contractual terms of the agreement. We measure impairment of a loan based upon the fair value of the loan's collateral if the loan is collateral-dependent or the present value of cash flows, discounted at the loan's effective interest rate, if the loan is not collateral-dependent. The impairment amount on a collateral-dependent loan is charged-off to the allowance, and the impairment amount on a loan that is not collateral-dependent is set up as a specific reserve within the allowance. We measure impairment of a lease based upon the present value of the scheduled lease and residual cash flows, discounted at the lease's effective interest rate. Increased charge-offs or additions to specific reserves generally result in increased provisions for credit losses. | |
Our loan and lease portfolio, excluding impaired loans and leases that are evaluated individually, is categorized into several pools for purposes of determining allowance amounts by pool. The pools we currently evaluate are: commercial real estate construction, residential real estate construction, SBA real estate, hospitality real estate, real estate other, commercial collateralized, commercial unsecured, SBA commercial, consumer, asset-based and leasing. Within these pools, we then evaluate loans and leases not adversely classified, which we refer to as "pass" credits, separately from adversely classified loans and leases. The adversely classified loans and leases are further grouped into three credit risk rating categories: "special mention," "substandard," and "doubtful," which we define as follows: | |
• | |
Special Mention: Loans and leases classified as "special mention" have a potential weakness that requires management's attention. If not addressed, these potential weaknesses may result in further deterioration in the borrower's ability to repay the loan or lease. | |
• | |
Substandard: Loans and leases classified as "substandard" have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the possibility that we will sustain some loss if the weaknesses are not corrected. | |
• | |
Doubtful: Loans and leases classified as "doubtful" have all the weaknesses of those classified as "substandard," with the additional trait that the weaknesses make collection or repayment in full highly questionable and improbable. | |
In addition, we may refer to the loans and leases classified as "substandard" and "doubtful" together as "classified" loans and leases. For further information on classified loans and leases, see Note 7, Loans and Leases, of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data." | |
The allowance amounts for "pass" rated loans and leases and those loans and leases adversely classified, which are not reviewed individually, are determined using historical loss rates developed through migration analysis. The migration analysis is updated quarterly based on historic losses and movement of loans between ratings. As a result of this migration analysis and its quarterly updating, decreases we experience in both charge-offs and adverse classifications generally result in lower loss factors. | |
Finally, in order to ensure our allowance methodology is incorporating recent trends and economic conditions, we apply environmental and general economic factors to our allowance methodology including: credit concentrations; delinquency trends; economic and business conditions; the quality of lending management and staff; lending policies and procedures; loss and recovery trends; nature and volume of the portfolio; nonaccrual and problem loan trends; usage trends of unfunded commitments; and other adjustments for items not covered by other factors. | |
Management believes that the allowance for loan and lease losses is adequate and appropriate for the known and inherent risks in our Non-PCI loan and lease portfolio. In making its evaluation, management considers certain quantitative and qualitative factors including the Company's historical loss experience; the volume and type of lending conducted by the Company; the results of our credit review process; the levels of classified and criticized loans and leases; the levels of impaired loans and leases, including nonperforming loans and leases and performing restructured loans; regulatory policies; general economic conditions; underlying collateral values; and other factors regarding collectability and impairment. To the extent we experience, for example, increased levels of documentation deficiencies, adverse changes in collateral values, or negative changes in economic and business conditions that adversely affect our borrowers, our classified loans and leases may increase. Higher levels of classified loans and leases generally result in higher allowances for loan and lease losses. | |
We recognize that the determination of the allowance for loan and lease losses is sensitive to the assigned credit risk ratings and inherent loss rates at any given point in time. Therefore, we perform sensitivity analyses to provide insight regarding the impact that adverse changes in credit risk ratings may have on our allowance for loan and lease losses. The sensitivity analyses have inherent limitations and are based on various assumptions as of a point in time and, accordingly, it is not necessarily representative of the impact loan risk rating changes may have on the allowance for loan and lease losses. | |
Management also believes that the reserve for unfunded loan commitments is appropriate. In making this determination, we use the same methodology for the reserve for unfunded loan commitments as we do for the allowance for loan and lease losses and consider the same quantitative and qualitative factors, as well as an estimate of the probability of advances of the commitments correlated to their credit risk rating. | |
Our federal and state banking regulators, as an integral part of their examination process, periodically review the Company's allowance for credit losses. Our regulators may require the Company to recognize additions to the allowance based on their judgments related to information available to them at the time of their examinations. | |
Allowance for credit losses on PCI loans. The PCI loans are subject to our internal and external credit review. If deterioration in the expected cash flows results in a reserve requirement, a provision for credit losses is charged to earnings. For PCI loans, the allowance for loan losses is measured at the end of each financial reporting period based on expected cash flows. Decreases or (increases) in the amount and changes in the timing of expected cash flows on the PCI loans as of the financial reporting date compared to those previously estimated are usually recognized by recording a provision or a (negative provision) for credit losses on such loans. | |
(i) FDIC Loss Sharing Asset | |
The FDIC loss sharing asset relates to assets covered by the loss sharing agreements between the Bank and the FDIC arising from the acquisitions of Affinity Bank and Los Padres Bank and, through the FCAL acquisition, the assumption of the loss sharing agreements between First California Bank and the FDIC arising from FCB's acquisition of Western Commercial and San Luis. The FDIC loss sharing asset related to Western Commercial and San Luis was measured at its fair value as of May 31, 2013 in conjunction with the FCAL acquisition. The FDIC loss sharing asset related to Los Padres and Affinity was measured at its estimated fair value at their respective acquisition dates. | |
An increase in the expected amount of losses on the covered assets will increase the FDIC loss sharing asset; such increase is recognized through a credit to FDIC loss sharing income. Recoveries on previous losses paid to us by the FDIC reduce the FDIC loss sharing asset by a charge to FDIC loss sharing income. In addition, decreases in the expected amount of losses on covered assets will decrease the amount of funds expected to be collected from the FDIC and will therefore reduce the FDIC loss sharing asset through higher prospective amortization expense. The FDIC loss sharing asset is being amortized to its estimated value over the lesser of the term of the loss sharing agreements or the remaining contractual life of the assets covered by the loss sharing agreements. | |
Both the Western Commercial and San Luis loss sharing agreements contain true-up provisions, under which we will owe the FDIC amounts at the end of the loss sharing agreements based on the performance of the covered assets. The true-up liability is included in other liabilities in the accompanying condensed consolidated balance sheets. | |
Under the terms of the Affinity loss sharing agreement, the FDIC will (a) absorb 80% of losses and receive 80% of loss recoveries on the first $234 million of losses on covered assets and (b) absorb 95% of losses and receive 95% of loss recoveries on losses exceeding $234 million. The Affinity loss sharing provisions expire in the third quarters of 2014 and 2019 for non-single family covered assets and single family covered assets, respectively, while the related loss recovery provisions expire in the third quarters of 2017 and 2019, respectively. | |
Under the terms of the Los Padres loss sharing agreement, the FDIC will absorb 80% of losses and receive 80% of loss recoveries on the covered assets. The Los Padres loss sharing provisions expire in the third quarters of 2015 and 2020 for non-single family and single family covered assets, respectively, while the related loss recovery provisions expire in the third quarters of 2018 and 2020, respectively. | |
Under the terms of the Western Commercial loss sharing agreement, the FDIC will absorb 80% of losses and receive 80% of loss recoveries on the covered assets; all of which were deemed to be non-single family. The Western Commercial loss sharing provision expires in the fourth quarter of 2015, while the related loss recovery provision expires in the fourth quarter of 2018. | |
Under the terms of the San Luis loss sharing agreement, the FDIC will absorb 80% of losses and receive 80% of loss recoveries on the covered assets. The San Luis loss sharing provisions expire in the first quarters of 2016 and 2021 for non-single family and single family covered assets, respectively, while the related loss recovery provisions expire in the first quarters of 2019 and 2021, respectively. | |
(j) Land, Premises and Equipment | |
Premises and equipment are stated at cost less accumulated depreciation and amortization. Land is not depreciated. Depreciation and amortization is charged to noninterest expense using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of furniture, fixtures and equipment range from 3 to 10 years and for buildings up to 35 years. Leasehold improvements are amortized over their estimated useful lives, or the life of the lease, whichever is shorter. | |
(k) Other Real Estate Owned | |
Non-covered OREO. Other real estate owned, or OREO, is initially recorded at the estimated fair value of the property, based on current independent appraisals obtained at the time of acquisition, less estimated costs to sell, including senior obligations such as delinquent property taxes. The excess of the recorded loan balance over the estimated fair value of the property at the time of acquisition less estimated costs to sell is charged to the allowance for loan losses. Any subsequent write-downs are charged to noninterest expense and recognized through an OREO valuation allowance. Subsequent increases in the fair value of the asset less selling costs reduce the OREO valuation allowance, but not below zero, and are credited to noninterest expense. Gains and losses on the sale of foreclosed properties and operating expenses of such assets are also included in noninterest expense. | |
Covered OREO. Covered OREO was initially recorded at its estimated fair value on the acquisition date based on independent appraisals less estimated selling costs. Any subsequent write-downs due to declines in fair value are charged to noninterest expense with a partial offset to FDIC loss sharing income for the loss reimbursement under the FDIC loss sharing agreement. Any recoveries of previous write-downs are credited to noninterest expense with a corresponding charge to FDIC loss sharing income, net for the portion of the recovery that is due to the FDIC. | |
(l) Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the period that includes the enactment date. Any interest or penalties assessed by the taxing authorities is classified in the financial statements as income tax expense. Deferred tax assets are included in other assets on the consolidated balance sheets. | |
On a quarterly basis, the Company evaluates its deferred tax assets to assess whether they are expected to be realized in the future. This determination is based on currently available facts and circumstances, including our current and projected future tax position, the historical level of our taxable income, and estimates of our future taxable income. In most cases, the realization of deferred tax assets is based on our future profitability. To the extent our deferred tax assets are no longer considered more likely than not to be realized, we could be required to record a valuation allowance on our deferred tax assets by charging earnings. | |
(m) Goodwill and Other Intangible Assets | |
Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. Goodwill and other intangible assets deemed to have indefinite lives generated from purchase business combinations are not subject to amortization and are instead tested for impairment no less than annually. Impairment exists when the carrying value of the goodwill exceeds its implied fair value. And impairment loss would be recognized in an amount equal to that excess and would be included in noninterest expense in the financial statements. | |
Intangible assets with estimable useful lives are amortized over such useful lives to their estimated residual values. Core deposit intangible assets, which we refer to as CDI, and customer relationship intangible assets, which we refer to as CRI, are recognized apart from goodwill at the time of acquisition based on market valuations prepared by independent third parties. In preparing such valuations, the third parties consider variables such as deposit servicing costs, attrition rates, and market discount rates. CDI assets are amortized to expense over their useful lives, which we have estimated to range from 7 to 10 years. CRI assets are amortized to expense over their useful lives, which we have estimated to range from 4 to 5 years. Both CDI and CRI are reviewed for impairment quarterly or earlier if events or changes in circumstances indicate that their carrying values may not be recoverable. If the recoverable amount of either CDI or CRI is determined to be less than its carrying value, we would then measure the amount of impairment based on an estimate of the intangible asset's fair value at that time. If the fair value is below the carrying value, the intangible asset is reduced to such fair value and the impairment is recognized as noninterest expense in the financial statements. | |
(n) Stock-Based Compensation | |
Compensation expense related to awards of restricted stock is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. The vesting of performance-based restricted stock awards and recognition of related compensation expense may occur over a shorter vesting period if financial performance targets are achieved earlier than anticipated. Amortization of unvested performance-based restricted stock is suspended when it becomes less than probable that the performance targets will be met. Amortization of unvested performance-based restricted stock is discontinued and previous amortization amounts are credited to earnings when it becomes improbable that performance targets will be met. When and if it becomes probable in the future that the performance target will be met a catch up adjustment is made and amortization resumes. | |
Unvested restricted stock participates with common stock in any dividends declared and paid. Dividends paid on unvested restricted stock awards expected to vest and the related tax benefits are included as a net reduction to stockholders' equity. Dividends paid on unvested restricted stock not expected to vest are charged to compensation expense. | |
(o) Business Segments | |
The Company's reportable segments consist of "Banking," "Asset Financing," and "Other." The Other segment consists of the PacWest Bancorp holding company and other elimination and reconciliation entries. | |
The Bank's Asset Financing segment includes the operations of the divisions and subsidiaries that provide asset-based commercial loans and equipment leases. The asset-based lending products are offered primarily through three business units: (1) First Community Financial ("FCF"), a division of the Bank, based in Phoenix, Arizona; (2) BFI Business Finance ("BFI"), a wholly-owned subsidiary of the Bank, based in San Jose, California; and (3) Celtic, a wholly-owned subsidiary of the Bank based in Santa Monica, California. The Bank's leasing products are offered through EQF, a division of the Bank based in Midvale, Utah. | |
Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Asset Financing segment based upon the Bank's total cost of interest-bearing liabilities. The provision for credit losses is allocated based on actual charge-offs for the period as well as assigning a minimum reserve requirement to the Asset Financing segment. Noninterest income and noninterest expense directly attributable to a segment are assigned to it. | |
(p) Comprehensive Income | |
Comprehensive income consists of net earnings and net unrealized gains (losses) on securities available-for-sale, net and is presented in the consolidated statements of comprehensive income. | |
(q) Earnings Per Share | |
In accordance with ASC Topic 260, "Earnings Per Share," all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities and are included in the two-class method of determining basic and diluted earnings per share. All of our unvested restricted stock participates with our common stockholders in dividends. Accordingly, earnings allocated to unvested restricted stock are deducted from net earnings to determine that amount of earnings available to common stockholders. In the two-class method, the amount of our earnings available to common stockholders is divided by the weighted average shares outstanding, excluding any unvested restricted stock, for both the basic and diluted earnings per share. | |
(r) Business Combinations | |
Business combinations completed after January 1, 2009, are accounted for under the acquisition method of accounting in accordance with ASC Topic 805, "Business Combinations." Under the acquisition method, the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceeds the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of earnings from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred. | |
(s) Recently Issued Accounting Standards | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." Under ASU 2013-11, an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for us on January 1, 2014 and is to be applied prospectively, although early adoption and retrospective adoption are permitted. The adoption of this standard is not expected to have any material effect on our financial statements. | |
In January 2014, the FASB issued ASU 2014-01, "Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects." ASU 2014-01 allows investors in low-income housing tax credit ("LIHTC") entities that meet certain conditions to present the net tax benefits (net of the amortization of the cost of the investment) within income tax expense. The cost of the investments that meets the conditions will be amortized in proportion to (and over the same period as) the total expected tax benefits, including tax credits and other tax benefits, as they are realized on the tax return. ASU 2014-01 is effective for us on January 1, 2015 and is to be applied retrospectively if investors elect the proportional amortization method. However, if investors have LIHTC investments accounted for under the effective yield method at adoption, they may continue to apply that method for those existing investments. Early adoption is permitted. The adoption of this standard permits expenses currently reported in noninterest expense to be reported in income tax expense. While the adoption of this standard will not have a material impact on our financial statements, total noninterest expense and income tax expense will change. | |
In January 2014, the FASB issued ASU 2014-04, "Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure." ASU 2014-04 clarifies when a creditor should reclassify mortgage loans collateralized by residential real estate from loans receivable to other real estate owned. ASU 2014-04 defines when an in-substance repossession or foreclosure has occurred and when a creditor is considered to have received physical possession of residential real estate collateralizing a mortgage loan. ASU 2014-04 is effective for us on January 1, 2015 and can be applied either prospectively or using a modified retrospective transition method, and early adoption is permitted. We are evaluating the impact this standard may have on our financial statements. | |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2013 | |
DISCONTINUED OPERATIONS | ' |
DISCONTINUED OPERATIONS | ' |
NOTE 2—DISCONTINUED OPERATIONS | |
In connection with the acquisition of FCAL, we acquired Electronic Payment Services ("EPS"), a division of the Bank that is being discontinued. Accordingly, all income and expense related to EPS have been removed from continuing operations and are included in the condensed consolidated statements of earnings under the caption "Earnings (loss) from discontinued operations." For the period from acquisition date to December 31, 2013, revenues and pre-tax loss for the EPS division were $2.6 million and $620,000, respectively. Liabilities of the EPS division, which consist primarily of noninterest-bearing deposits, are included in the condensed consolidated balance sheets under the caption "Discontinued operations." For segment reporting purposes, the EPS division is included in our Banking Segment. | |
RESTRICTED_CASH_BALANCES
RESTRICTED CASH BALANCES | 12 Months Ended |
Dec. 31, 2013 | |
RESTRICTED CASH BALANCES | ' |
RESTRICTED CASH BALANCES | ' |
NOTE 3—RESTRICTED CASH BALANCES | |
The Company is required to maintain reserve balances with the FRBSF. Such reserve requirements are based on a percentage of deposit liabilities and may be satisfied by cash on hand. The average reserves required to be held at the FRBSF for the years ended December 31, 2013 and 2012 were $13.1 million and $5.0 million, respectively. | |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
ACQUISITIONS | ' | |||||||||||||
ACQUISITIONS | ' | |||||||||||||
NOTE 4—ACQUISITIONS | ||||||||||||||
We completed the following acquisitions during the time period of January 1, 2011 to December 31, 2013, using the acquisition method of accounting, and, accordingly, the operating results of the acquired entities have been included in our consolidated financial statements from their respective dates of acquisition. | ||||||||||||||
The following balance sheets of the acquired entities are presented at estimated fair value of their respective acquisition dates: | ||||||||||||||
Acquisition and Date Acquired | ||||||||||||||
First | American | Celtic | Pacific | |||||||||||
California | Perspective | Capital | Western | |||||||||||
Financial | Bank | Corporation | Equipment | |||||||||||
Group | Finance | |||||||||||||
May 31, | August 1, | April 3, | January 3, | |||||||||||
2013 | 2012 | 2012 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Assets Acquired: | ||||||||||||||
Cash and due from banks | $ | 6,124 | $ | 3,370 | $ | 3,435 | $ | 7,092 | ||||||
Interest-earning deposits in financial institutions | 266,889 | 10,081 | — | — | ||||||||||
Investment securities available-for-sale | 4,444 | 48,887 | — | — | ||||||||||
FHLB stock | 9,518 | 1,412 | — | — | ||||||||||
Loans and leases | 1,049,613 | 197,279 | 54,963 | 140,959 | ||||||||||
Other real estate owned | 13,772 | 1,561 | — | — | ||||||||||
Premises and equipment | 15,322 | — | — | — | ||||||||||
FDIC loss sharing asset | 17,241 | — | — | — | ||||||||||
Cash surrender value of life insurance | 13,265 | — | — | — | ||||||||||
Goodwill | 129,070 | 15,047 | 6,645 | 19,033 | ||||||||||
Core deposit and customer relationship intangibles | 7,927 | 1,924 | 1,300 | 1,700 | ||||||||||
Other intangible assets | — | — | 670 | 1,420 | ||||||||||
Leases in process | — | — | — | 19,162 | ||||||||||
Other assets | 47,671 | 4,234 | 69 | 467 | ||||||||||
| | | | | | | | | | | | | | |
Total assets acquired | $ | 1,580,856 | $ | 283,795 | $ | 67,082 | $ | 189,833 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities Assumed: | ||||||||||||||
Noninterest-bearing deposits | $ | 361,166 | $ | 40,673 | $ | — | $ | — | ||||||
Interest-bearing deposits | 739,713 | 178,891 | — | — | ||||||||||
Borrowings from parent | — | — | — | 128,677 | ||||||||||
Other borrowings | — | 5,315 | 46,804 | 15,839 | ||||||||||
Subordinated debentures | 24,061 | — | — | — | ||||||||||
Discontinued operations | 184,619 | — | — | — | ||||||||||
Accrued interest payable and other liabilities | 19,729 | 840 | 2,278 | 10,317 | ||||||||||
| | | | | | | | | | | | | | |
Total liabilities assumed | $ | 1,329,288 | $ | 225,719 | $ | 49,082 | $ | 154,833 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total consideration paid | $ | 251,568 | $ | 58,076 | $ | 18,000 | $ | 35,000 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Summary of consideration: | ||||||||||||||
Cash paid | $ | — | $ | 58,076 | $ | 18,000 | $ | 35,000 | ||||||
PacWest common stock issued | 242,268 | — | — | — | ||||||||||
Cancellation of FCAL common stock owned by | ||||||||||||||
PacWest (at acquisition date fair value) | 9,300 | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 251,568 | $ | 58,076 | $ | 18,000 | $ | 35,000 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
First California Financial Group Acquisition | ||||||||||||||
On May 31, 2013, we completed the acquisition of First California Financial Group, Inc., or FCAL, following receipt of shareholder approval from both institutions and all required regulatory approvals. As part of the acquisition, First California Bank, or FCB, a wholly-owned subsidiary of FCAL, merged with and into Pacific Western. | ||||||||||||||
In the FCAL acquisition, each share of FCAL common stock was converted into the right to receive 0.2966 of a share of PacWest common stock. The exchange ratio was calculated based on the volume-weighted average share price of PacWest common stock for the 20 consecutive trading days ending on the second full trading day prior to the receipt of the last of the regulatory approvals required under the merger agreement. PacWest issued an aggregate of approximately 8.4 million shares of PacWest common stock to FCAL stockholders. In addition, 1,094,000 shares of FCAL common stock previously owned by PacWest at a cost of $4.1 million were cancelled in the transaction. These shares were carried in our securities available-for-sale portfolio at their estimated market value with their unrealized gain of $5.2 million included in stockholders' equity at May 31, 2013. Under acquisition accounting, this unrealized gain was recognized in earnings. Based on the closing price of PacWest's common stock on May 31, 2013 of $28.83 per share, the aggregate consideration paid to FCAL common stockholders, including the 1,094,000 shares of FCAL common stock owned by us and cancelled in the merger, was $251.6 million. | ||||||||||||||
The FCAL acquisition has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the May 31, 2013 acquisition date. The application of the acquisition method of accounting resulted in goodwill of $129.1 million. All of the recognized goodwill is expected to be non-deductible for tax purposes. | ||||||||||||||
FCB was a full-service commercial bank headquartered in Westlake Village, California. FCB provided a full range of banking services, including revolving lines of credit, term loans, commercial real estate loans, construction loans, consumer loans and home equity loans to individuals, professionals, and small to mid-sized businesses. FCB operated 15 branches throughout Southern California in the Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, and San Luis Obispo Counties. We made this acquisition to expand our presence in Southern California. We completed the conversion and integration of the FCB branches to PWB's operating platform in June 2013 and as a result, we added seven locations to our branch network. | ||||||||||||||
American Perspective Bank Acquisition | ||||||||||||||
On August 1, 2012, Pacific Western completed the acquisition of American Perspective Bank, or APB, previously headquartered in San Luis Obispo, California. Pacific Western acquired all of the outstanding common stock of APB for $58.1 million in cash and APB was merged with and into Pacific Western; we refer to this transaction as the APB acquisition. APB operated two branches located in San Luis Obispo and Santa Maria, California, and a loan production office located in Paso Robles, California, which has since been converted to a full-service branch. The APB acquisition strengthened our presence in the Central Coast region. | ||||||||||||||
Celtic Capital Corporation Acquisition | ||||||||||||||
On April 3, 2012, Pacific Western completed the acquisition of Celtic Capital Corporation, or Celtic, an asset-based lending company based in Santa Monica, California. Pacific Western acquired all of the capital stock of Celtic for $18 million in cash and Celtic became a wholly-owned subsidiary of Pacific Western; we refer to this transaction as the Celtic acquisition. Celtic focuses on providing asset-based loans to borrowers across the United States for amounts generally up to $5 million. The Celtic acquisition diversified our lending portfolio, expanded our product lines, and deployed excess liquidity into higher yielding assets. | ||||||||||||||
Pacific Western Equipment Finance Acquisition | ||||||||||||||
On January 3, 2012, Pacific Western completed the acquisition of Pacific Western Equipment Finance (formerly known as Marquette Equipment Finance, and which we refer to as EQF), an equipment leasing company based in Midvale, Utah. Pacific Western acquired all of the capital stock of EQF for $35 million in cash and EQF became a division of Pacific Western; we refer to this transaction as the EQF acquisition. The EQF acquisition diversified our loan portfolio, expanded our product lines, and deployed excess liquidity into higher yielding assets. | ||||||||||||||
Unaudited Pro Forma Results of Operations | ||||||||||||||
The following table presents our unaudited pro forma results of operations for the periods presented as if the FCAL acquisition had been completed on January 1, 2012. The unaudited pro forma results of operations include the historical accounts of the Company and FCAL and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the FCAL acquisition been completed at the beginning of 2012. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. | ||||||||||||||
Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(In thousands, except | ||||||||||||||
per share date) | ||||||||||||||
Pro forma revenues (net interest income plus noninterest income) | $ | 325,801 | $ | 370,115 | ||||||||||
Pro forma net earnings from continuing operations | $ | 52,640 | $ | 71,684 | ||||||||||
Pro forma net earnings from continuing operations per share: | ||||||||||||||
Basic | $ | 1.16 | $ | 1.58 | ||||||||||
Diluted | $ | 1.16 | $ | 1.58 | ||||||||||
Acquisition-Related Charges | ||||||||||||||
All of the acquisitions consummated after December 31, 2000 were completed using the acquisition method of accounting. For those acquisitions completed prior to January 1, 2009, we recorded the estimated merger-related charges associated with each acquisition as a liability at closing when the related purchase price was allocated. For each acquisition, we developed an integration plan for the Company that addressed, among other things, requirements for staffing, systems platforms, branch locations and other facilities. The remaining merger-related liability for acquisitions completed prior to January 1, 2009 was zero at December 31, 2013. For acquisitions completed after January 1, 2009, acquisition-related costs, such as legal, accounting, valuation and other professional fees, necessary to effect a business combination, were charged to earnings in the periods in which the costs were incurred. We incurred and charged to expense approximately $28.4 million, $4.1 million, and $600,000 of such costs in 2013, 2012, and 2011, respectively. | ||||||||||||||
CapitalSource Merger Announcement | ||||||||||||||
On July 22, 2013, PacWest announced the signing of a definitive agreement and plan of merger (the "Agreement") whereby PacWest and CapitalSource, Inc. ("CapitalSource") will merge in a transaction valued at approximately $2.8 billion based on the closing price of PacWest common stock on February 13, 2014 of $40.11. The combined company will be called PacWest Bancorp. As part of the merger, CapitalSource Bank, a wholly-owned subsidiary of CapitalSource, will merge with and into Pacific Western, and the combined subsidiary bank will be called Pacific Western Bank. The CapitalSource national lending operation will continue to do business under the name CapitalSource as a division of Pacific Western Bank. | ||||||||||||||
Under the terms of the Agreement, CapitalSource shareholders will receive $2.47 in cash and 0.2837 shares of PacWest common stock for each share of CapitalSource common stock. The total value of the CapitalSource per share merger consideration was $13.85 based on the closing price of PacWest shares on February 13, 2014 of $40.11. | ||||||||||||||
As of December 31, 2013, on a pro forma consolidated basis, the combined company would have had approximately $15.4 billion in assets with 94 branches throughout California. We currently expect to receive final regulatory approval in the first quarter of 2014 and to close the merger on April 1, 2014. | ||||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||
NOTE 5—GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||
The following table presents the changes in the carrying amount of goodwill for the years indicated: | |||||||||||
Goodwill | |||||||||||
(In thousands) | |||||||||||
Balance, December 31, 2010 | $ | 47,301 | |||||||||
Adjustments to Los Padres goodwill, including resolution of matter with FDIC regarding settlement accounting for wholly-owned subsidiary of Los Padres | (8,160 | ) | |||||||||
| | | | | |||||||
Balance, December 31, 2011 | 39,141 | ||||||||||
Addition from the EQF acquisition | 19,033 | ||||||||||
Addition from the Celtic acquisition | 6,645 | ||||||||||
Addition from the APB acquisition | 15,047 | ||||||||||
| | | | | |||||||
Balance, December 31, 2012 | 79,866 | ||||||||||
Adjustment to APB goodwill | (193 | ) | |||||||||
Addition from the FCAL acquisition | 129,070 | ||||||||||
| | | | | |||||||
Balance, December 31, 2013 | $ | 208,743 | |||||||||
| | | | | |||||||
| | | | | |||||||
The goodwill related to the FCAL, Celtic and APB acquisitions is not deductible for tax purposes, while the EQF acquisition is deductible. | |||||||||||
Our intangible assets with definite lives include core deposit and customer relationship intangibles. These intangibles are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or loan customers acquired. The weighted average amortization period for the CDI addition from the FCAL acquisition is 3.3 years. The weighted average amortization period remaining for all of our core deposit and customer relationship intangibles is 2.6 years. The estimated aggregate amortization expense related to these intangible assets for each of the next five years is $5.3 million, $4.8 million, $3.0 million, $1.6 million and $1.3 million. | |||||||||||
The following table presents the changes in the gross amounts of core deposit intangibles, or CDI, and customer relationship intangibles, or CRI, and the related accumulated amortization for the years indicated: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Gross amount of CDI and CRI: | |||||||||||
Balance, beginning of year | $ | 45,412 | $ | 67,100 | $ | 76,319 | |||||
Additions due to acquisitions | 7,927 | 4,924 | — | ||||||||
Fully amortized portion | (4,376 | ) | (20,746 | ) | (9,219 | ) | |||||
Removal due to branch sale | — | (5,866 | ) | — | |||||||
| | | | | | | | | | | |
Balance, end of year | 48,963 | 45,412 | 67,100 | ||||||||
| | | | | | | | | | | |
Accumulated Amortization: | |||||||||||
Balance, beginning of year | (30,689 | ) | (49,685 | ) | (50,476 | ) | |||||
Amortization | (5,402 | ) | (6,326 | ) | (8,428 | ) | |||||
Fully amortized portion | 4,376 | 20,746 | 9,219 | ||||||||
Removal due to branch sale | — | 4,576 | — | ||||||||
| | | | | | | | | | | |
Balance, end of year | (31,715 | ) | (30,689 | ) | (49,685 | ) | |||||
| | | | | | | | | | | |
Net CDI and CRI, end of year | $ | 17,248 | $ | 14,723 | $ | 17,415 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The $1.3 million of CDI written off during 2012 related to previously acquired deposits that were sold in connection with the sale of branches in September 2012. Such expense is included in "other income" in the net gain on sale of branches. | |||||||||||
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
NOTE 6—INVESTMENT SECURITIES | ||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||
The following tables present the amortized cost, gross unrealized gains and losses, and carrying value of securities available-for-sale as of the dates indicated: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Security Type | Amortized | Gross | Gross | Carrying | ||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Government agency and government-sponsored enterprise pass through securities | $ | 691,944 | $ | 18,012 | $ | (2,768 | ) | $ | 707,188 | |||||||||||
Government agency and government-sponsored enterprise collateralized mortgage obligations | 197,069 | 388 | (4,584 | ) | 192,873 | |||||||||||||||
Covered private label collateralized mortgage obligations | 30,502 | 7,552 | (150 | ) | 37,904 | |||||||||||||||
Municipal securities | 459,182 | 1,749 | (24,273 | ) | 436,658 | |||||||||||||||
Corporate debt securities | 84,119 | 71 | (1,483 | ) | 82,707 | |||||||||||||||
Government-sponsored enterprise debt securities | 10,046 | — | (174 | ) | 9,872 | |||||||||||||||
Other securities | 27,654 | 2 | (113 | ) | 27,543 | |||||||||||||||
| | | | | | | | | | | | | | |||||||
Total securities available-for-sale | $ | 1,500,516 | $ | 27,774 | $ | (33,545 | ) | $ | 1,494,745 | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
December 31, 2012 | ||||||||||||||||||||
Security Type | Amortized | Gross | Gross | Carrying | ||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Government agency and government-sponsored enterprise pass through securities | $ | 774,677 | $ | 33,618 | $ | (453 | ) | $ | 807,842 | |||||||||||
Government agency and government-sponsored enterprise collateralized mortgage obligations | 99,956 | 1,870 | (132 | ) | 101,694 | |||||||||||||||
Covered private label collateralized mortgage obligations | 36,078 | 8,729 | (123 | ) | 44,684 | |||||||||||||||
Municipal securities | 339,547 | 10,445 | (1,951 | ) | 348,041 | |||||||||||||||
Corporate debt securities | 42,014 | 432 | (81 | ) | 42,365 | |||||||||||||||
Other securities | 6,389 | 4,370 | — | 10,759 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total securities available-for-sale | $ | 1,298,661 | $ | 59,464 | $ | (2,740 | ) | $ | 1,355,385 | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
During 2013, 2012, and 2011, we made investment purchases of $550.2 million, $485.9 million, and $658.3 million, of investment securities available-for-sale, respectively. | ||||||||||||||||||||
During 2013, we sold $12.4 million of corporate debt securities and $10.0 million in collateralized loan obligation securities for which we realized a gross gain of $409,000 and a gross loss of $272,000, respectively. The sale of the corporate debt securities was done as part of our portfolio risk management activities to reduce price volatility and duration. The sale of collateralized loan obligation securities was done in order to minimize our risk in holding these securities subject to the then proposed regulations referred to as the Volcker rule. During 2012, we sold $43.9 million of GSE pass through securities as part of our portfolio risk management activities and realized a $1.2 million gross gain. We also sold $45.6 million of the $48.9 million of investment securities obtained in the APB acquisition for no gain or loss. There were no sales of securities in 2011. | ||||||||||||||||||||
At December 31, 2013, the fair value of residential mortgage-backed securities issued by the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") that were held in our portfolio was approximately $740.4 million. We do not own any equity securities issued by Fannie Mae or Freddie Mac. The covered private label collateralized mortgage obligations ("CMO's") were acquired in the FDIC-assisted acquisition of Affinity Bank in August 2009 and are covered by an FDIC loss sharing agreement. The loss sharing provisions of this agreement expire in the third quarter of 2014 for non-single family covered assets such as these private label CMO's. Other securities consist primarily of asset-backed securities. As of December 31, 2013 and 2012, securities available-for-sale with a carrying value of $208.3 million and $157.3 million, respectively, were pledged as security for borrowings, public deposits and other purposes as required by various statutes and agreements. | ||||||||||||||||||||
Market valuations of our investment securities are provided by an independent third party. The fair values are determined by using several sources for valuing fixed income securities. Their techniques include pricing models that vary based on the type of asset being valued and incorporate available trade, bid and other market information. In accordance with the hierarchy established in ASC Topic 820, "Fair Value Measurement," the market valuation sources include observable market inputs for the majority of our securities and are therefore considered Level 2 inputs for purposes of determining the fair values. The valuation techniques for the covered private label CMOs are considered Level 3. See Note 14, Fair Value Measurements, for information on fair value measurements and methodology. | ||||||||||||||||||||
The following tables present, for those securities that were in a gross unrealized loss position, the carrying values, which are the estimated fair values, and the gross unrealized losses on securities by length of time the securities were in an unrealized loss position as of the dates indicated: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
Security Type | Carrying | Gross | Carrying | Gross | Carrying | Gross | ||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Government agency and government-sponsored enterprise pass through securities | $ | 148,662 | $ | (2,767 | ) | $ | 32 | $ | (1 | ) | $ | 148,694 | $ | (2,768 | ) | |||||
Government agency and government-sponsored enterprise collateralized mortgage obligations | 179,938 | (4,486 | ) | 4,383 | (98 | ) | 184,321 | (4,584 | ) | |||||||||||
Covered private label collateralized mortgage obligations | 1,640 | (60 | ) | 617 | (90 | ) | 2,257 | (150 | ) | |||||||||||
Municipal securities | 337,208 | (24,273 | ) | — | — | 337,208 | (24,273 | ) | ||||||||||||
Corporate debt securities | 72,636 | (1,483 | ) | — | — | 72,636 | (1,483 | ) | ||||||||||||
Government-sponsored enterprise debt securities | 9,872 | (174 | ) | — | — | 9,872 | (174 | ) | ||||||||||||
Other securities | 23,969 | (113 | ) | — | — | 23,969 | (113 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 773,925 | $ | (33,356 | ) | $ | 5,032 | $ | (189 | ) | $ | 778,957 | $ | (33,545 | ) | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
Security Type | Carrying | Gross | Carrying | Gross | Carrying | Gross | ||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Government agency and government-sponsored enterprise pass through securities | $ | 67,299 | $ | (452 | ) | $ | 60 | $ | (1 | ) | $ | 67,359 | $ | (453 | ) | |||||
Government agency and government-sponsored enterprise collateralized mortgage obligations | 18,317 | (132 | ) | — | — | 18,317 | (132 | ) | ||||||||||||
Covered private label collateralized mortgage obligations | — | — | 1,692 | (123 | ) | 1,692 | (123 | ) | ||||||||||||
Municipal securities | 90,303 | (1,951 | ) | — | — | 90,303 | (1,951 | ) | ||||||||||||
Corporate debt securities | 16,819 | (81 | ) | — | — | 16,819 | (81 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 192,738 | $ | (2,616 | ) | $ | 1,752 | $ | (124 | ) | $ | 194,490 | $ | (2,740 | ) | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
We reviewed the securities that were in a continuous loss position less than 12 months and longer than 12 months at December 31, 2013, and concluded that their losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. Accordingly, we determined that the securities were temporarily impaired and we did not recognize such impairment in the consolidated statements of earnings. Additionally, we have no plans to sell these securities and believe that it is more likely than not we would not be required to sell these securities before recovery of their amortized cost. | ||||||||||||||||||||
During 2012, we determined that one covered private label CMO was impaired due to deteriorating cash flows and the depletion of the credit support from the subordinated classes of the securitization. We recorded an other-than-temporary impairment ("OTTI") loss of $1.1 million, which was entirely credit related, in the consolidated statements of earnings. This loss was offset by FDIC loss sharing income of $892,000, which represented the FDIC's 80% share of the loss. There were no OTTI losses recognized during 2013 and 2011. | ||||||||||||||||||||
The contractual maturity distribution of our securities available-for-sale portfolio based on amortized cost and carrying value is shown as of the date below: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Maturity | Amortized | Carrying | ||||||||||||||||||
Cost | Value | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Due in one year or less | $ | 5,775 | $ | 5,792 | ||||||||||||||||
Due after one year through five years | 24,597 | 24,749 | ||||||||||||||||||
Due after five years through ten years | 131,259 | 129,985 | ||||||||||||||||||
Due after ten years | 1,338,885 | 1,334,219 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total securities available-for-sale | $ | 1,500,516 | $ | 1,494,745 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities may differ from contractual maturities because obligors and/or issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
The following table presents the composition of our interest income on investment securities for the years indicated: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Securities Interest by Type: | ||||||||||||||||||||
Taxable interest | $ | 23,542 | $ | 29,652 | $ | 33,390 | ||||||||||||||
Nontaxable interest | 11,777 | 5,559 | 1,222 | |||||||||||||||||
Dividend income | 1,604 | 446 | 173 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total interest income on investment securities | $ | 36,923 | $ | 35,657 | $ | 34,785 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
FHLB Stock | ||||||||||||||||||||
At December 31, 2013, the Company had a $27.9 million investment in FHLB stock carried at cost. We evaluated the carrying value of our FHLB stock investment at December 31, 2013, and determined that it was not impaired. Our evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB, repurchase activity of excess stock by the FHLB at its carrying value, the return on the investment, and our intent and ability to hold this investment for a period of time sufficient to recover our recorded investment. | ||||||||||||||||||||
LOANS_AND_LEASES
LOANS AND LEASES | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
LOANS AND LEASES | ' | |||||||||||||||||||||||||
LOANS AND LEASES | ' | |||||||||||||||||||||||||
NOTE 7—LOANS AND LEASES | ||||||||||||||||||||||||||
The following table summarizes the composition of our loan and lease portfolio as of the dates indicated: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Non-PCI | PCI | Total | Non-PCI | PCI | Total | |||||||||||||||||||||
Loans and | Loans | Loans and | Loans | |||||||||||||||||||||||
Leases | Leases | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Non-covered loans and leases | $ | 3,844,591 | $ | 20,326 | $ | 3,864,917 | $ | 3,049,505 | $ | — | $ | 3,049,505 | ||||||||||||||
Covered loans | 85,948 | 362,470 | 448,418 | 25,442 | 517,885 | 543,327 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total gross loans and leases | 3,930,539 | 382,796 | 4,313,335 | 3,074,947 | 517,885 | 3,592,832 | ||||||||||||||||||||
Unearned income | (983 | ) | — | (983 | ) | (2,535 | ) | — | (2,535 | ) | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total loans and leases, net of unearned income | 3,929,556 | 382,796 | 4,312,352 | 3,072,412 | 517,885 | 3,590,297 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Non-covered loans and leases | (60,241 | ) | — | (60,241 | ) | (65,899 | ) | — | (65,899 | ) | ||||||||||||||||
Covered loans | — | (21,793 | ) | (21,793 | ) | — | (26,069 | ) | (26,069 | ) | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total allowance for loan and lease losses | (60,241 | ) | (21,793 | ) | (82,034 | ) | (65,899 | ) | (26,069 | ) | (91,968 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total net loans and leases | $ | 3,869,315 | $ | 361,003 | $ | 4,230,318 | $ | 3,006,513 | $ | 491,816 | $ | 3,498,329 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
The following table presents the composition of our gross loans and leases by portfolio segment as of the dates indicated: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Non-PCI | PCI | Total | Non-PCI | PCI | Total | |||||||||||||||||||||
Loans and | Loans | Loans and | Loans | |||||||||||||||||||||||
Leases | Leases | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Non-Covered Loans and Leases | ||||||||||||||||||||||||||
Real estate mortgage | $ | 2,359,125 | $ | 18,900 | $ | 2,378,025 | $ | 1,919,310 | $ | — | $ | 1,919,310 | ||||||||||||||
Real estate construction | 200,332 | 1,391 | 201,723 | 129,959 | — | 129,959 | ||||||||||||||||||||
Commercial | 963,152 | — | 963,152 | 803,342 | — | 803,342 | ||||||||||||||||||||
Leases | 269,769 | — | 269,769 | 174,373 | — | 174,373 | ||||||||||||||||||||
Consumer | 52,213 | 35 | 52,248 | 22,521 | — | 22,521 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total gross non-covered loans and leases | $ | 3,844,591 | $ | 20,326 | $ | 3,864,917 | $ | 3,049,505 | $ | — | $ | 3,049,505 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Covered Loans | ||||||||||||||||||||||||||
Real estate mortgage | $ | 65,739 | $ | 352,234 | $ | 417,973 | $ | 20,843 | $ | 484,057 | $ | 504,900 | ||||||||||||||
Real estate construction | 8,758 | 9,036 | 17,794 | — | 24,645 | 24,645 | ||||||||||||||||||||
Commercial | 8,855 | 974 | 9,829 | 4,113 | 9,071 | 13,184 | ||||||||||||||||||||
Consumer | 2,596 | 226 | 2,822 | 486 | 112 | 598 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total gross covered loans | $ | 85,948 | $ | 362,470 | $ | 448,418 | $ | 25,442 | $ | 517,885 | $ | 543,327 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Loans and Leases | ||||||||||||||||||||||||||
Real estate mortgage | $ | 2,424,864 | $ | 371,134 | $ | 2,795,998 | $ | 1,940,153 | $ | 484,057 | $ | 2,424,210 | ||||||||||||||
Real estate construction | 209,090 | 10,427 | 219,517 | 129,959 | 24,645 | 154,604 | ||||||||||||||||||||
Commercial | 972,007 | 974 | 972,981 | 807,455 | 9,071 | 816,526 | ||||||||||||||||||||
Leases | 269,769 | — | 269,769 | 174,373 | — | 174,373 | ||||||||||||||||||||
Consumer | 54,809 | 261 | 55,070 | 23,007 | 112 | 23,119 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total gross loans and leases | $ | 3,930,539 | $ | 382,796 | $ | 4,313,335 | $ | 3,074,947 | $ | 517,885 | $ | 3,592,832 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
As of May 31, 2013, the fair value of the FCAL Non-PCI loans acquired was $1.0 billion, the related gross contractual amount was $1.3 billion, and the estimated contractual cash flows not expected to be collected was $34.4 million. | ||||||||||||||||||||||||||
The following table presents a summary of the activity in the allowance for credit losses on Non-PCI loans and leases for the years indicated: | ||||||||||||||||||||||||||
Components | ||||||||||||||||||||||||||
Non-PCI | Non-PCI | Total | ||||||||||||||||||||||||
Allowance for | Reserve for | Non-PCI | ||||||||||||||||||||||||
Loan and | Unfunded | Allowance for | ||||||||||||||||||||||||
Lease Losses | Loan | Credit | ||||||||||||||||||||||||
Commitments | Losses | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 98,653 | $ | 5,675 | $ | 104,328 | ||||||||||||||||||||
Charge-offs | (28,560 | ) | — | (28,560 | ) | |||||||||||||||||||||
Recoveries | 4,715 | — | 4,715 | |||||||||||||||||||||||
Provision | 10,505 | 2,795 | 13,300 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance, December 31, 2011 | 85,313 | 8,470 | 93,783 | |||||||||||||||||||||||
Charge-offs | (13,070 | ) | — | (13,070 | ) | |||||||||||||||||||||
Recoveries | 3,406 | — | 3,406 | |||||||||||||||||||||||
Negative provision | (9,750 | ) | (2,250 | ) | (12,000 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance, December 31, 2012 | 65,899 | 6,220 | 72,119 | |||||||||||||||||||||||
Charge-offs | (11,159 | ) | — | (11,159 | ) | |||||||||||||||||||||
Recoveries | 6,856 | — | 6,856 | |||||||||||||||||||||||
(Negative provision) provision | (1,355 | ) | 1,355 | — | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance, December 31, 2013 | $ | 60,241 | $ | 7,575 | $ | 67,816 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
The following tables present summaries of the activity in the allowance for loan and lease losses on Non-PCI loans and leases by portfolio segment and PCI loans for the years indicated: | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Real | Real | Commercial | Leases | Consumer | Total | Total | Total | |||||||||||||||||||
Estate | Estate | Non-PCI | PCI | |||||||||||||||||||||||
Mortgage | Construction | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 38,700 | $ | 3,221 | $ | 20,759 | $ | 1,493 | $ | 1,726 | $ | 65,899 | $ | 26,069 | $ | 91,968 | ||||||||||
Charge-offs | (4,552 | ) | — | (6,295 | ) | (114 | ) | (198 | ) | (11,159 | ) | (66 | ) | (11,225 | ) | |||||||||||
Recoveries | 2,507 | 1,654 | 2,621 | — | 74 | 6,856 | — | 6,856 | ||||||||||||||||||
Provision (negative provision) | (10,577 | ) | (577 | ) | 6,609 | 1,848 | 1,342 | (1,355 | ) | (4,210 | ) | (5,565 | ) | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 26,078 | $ | 4,298 | $ | 23,694 | $ | 3,227 | $ | 2,944 | $ | 60,241 | $ | 21,793 | $ | 82,034 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Amount of the allowance applicable to loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,188 | $ | 169 | $ | 5,003 | $ | — | $ | 240 | $ | 7,600 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | $ | 23,890 | $ | 4,129 | $ | 18,691 | $ | 3,227 | $ | 2,704 | $ | 52,641 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | $ | 21,793 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans and Leases: | ||||||||||||||||||||||||||
Ending balance | $ | 2,424,864 | $ | 209,090 | $ | 972,007 | $ | 269,769 | $ | 54,809 | $ | 3,930,539 | $ | 382,796 | $ | 4,313,335 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
The ending balance of the loan and lease portfolio is composed of loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 62,276 | $ | 7,512 | $ | 17,300 | $ | 632 | $ | 702 | $ | 88,422 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | $ | 2,362,588 | $ | 201,578 | $ | 954,707 | $ | 269,137 | $ | 54,107 | $ | 3,842,117 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | $ | 382,796 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Real | Real | Commercial | Leases | Consumer | Total | Total | Total | |||||||||||||||||||
Estate | Estate | Non-PCI | PCI | |||||||||||||||||||||||
Mortgage | Construction | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 50,205 | $ | 8,697 | $ | 23,643 | $ | — | $ | 2,768 | $ | 85,313 | $ | 31,275 | $ | 116,588 | ||||||||||
Charge-offs | (7,680 | ) | (492 | ) | (4,580 | ) | (28 | ) | (290 | ) | (13,070 | ) | (4,387 | ) | (17,457 | ) | ||||||||||
Recoveries | 1,598 | 49 | 1,622 | — | 137 | 3,406 | — | 3,406 | ||||||||||||||||||
Provision (negative provision) | (5,423 | ) | (5,033 | ) | 74 | 1,521 | (889 | ) | (9,750 | ) | (819 | ) | (10,569 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 38,700 | $ | 3,221 | $ | 20,759 | $ | 1,493 | $ | 1,726 | $ | 65,899 | $ | 26,069 | $ | 91,968 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Amount of the allowance applicable to loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,827 | $ | 371 | $ | 4,525 | $ | — | $ | 265 | $ | 12,988 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | $ | 30,873 | $ | 2,850 | $ | 16,234 | $ | 1,493 | $ | 1,461 | $ | 52,911 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | $ | 26,069 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans and Leases: | ||||||||||||||||||||||||||
Ending balance | $ | 1,940,153 | $ | 129,959 | $ | 807,455 | $ | 174,373 | $ | 23,007 | $ | 3,074,947 | $ | 517,885 | $ | 3,592,832 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
The ending balance of the loan and lease portfolio is composed of loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 107,198 | $ | 25,450 | $ | 14,530 | $ | 244 | $ | 628 | $ | 148,050 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | $ | 1,832,955 | $ | 104,509 | $ | 792,925 | $ | 174,129 | $ | 22,379 | $ | 2,926,897 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | $ | 517,885 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-Purchased Credit Impaired (Non-PCI) Loans and Leases | ||||||||||||||||||||||||||
The following tables present the credit risk rating categories for Non-PCI loans and leases by portfolio segment and class as of the dates indicated. Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful. | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Nonclassified | Classified | Total | Nonclassified | Classified | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 168,216 | $ | 12,337 | $ | 180,553 | $ | 168,489 | $ | 12,655 | $ | 181,144 | ||||||||||||||
SBA 504 | 39,869 | 5,297 | 45,166 | 48,372 | 5,786 | 54,158 | ||||||||||||||||||||
Other | 2,134,866 | 64,279 | 2,199,145 | 1,655,086 | 49,765 | 1,704,851 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate mortgage | 2,342,951 | 81,913 | 2,424,864 | 1,871,947 | 68,206 | 1,940,153 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 58,131 | 750 | 58,881 | 46,591 | 2,038 | 48,629 | ||||||||||||||||||||
Commercial | 143,918 | 6,291 | 150,209 | 77,503 | 3,827 | 81,330 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate construction | 202,049 | 7,041 | 209,090 | 124,094 | 5,865 | 129,959 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 568,348 | 18,838 | 587,186 | 447,323 | 14,802 | 462,125 | ||||||||||||||||||||
Unsecured | 151,896 | 1,856 | 153,752 | 77,670 | 2,905 | 80,575 | ||||||||||||||||||||
Asset-based | 195,569 | 6,859 | 202,428 | 235,075 | 4,355 | 239,430 | ||||||||||||||||||||
SBA 7(a) | 22,880 | 5,761 | 28,641 | 18,888 | 6,437 | 25,325 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total commercial | 938,693 | 33,314 | 972,007 | 778,956 | 28,499 | 807,455 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Leases | 269,137 | 632 | 269,769 | 174,129 | 244 | 174,373 | ||||||||||||||||||||
Consumer | 50,398 | 4,411 | 54,809 | 21,767 | 1,240 | 23,007 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 3,803,228 | $ | 127,311 | $ | 3,930,539 | $ | 2,970,893 | $ | 104,054 | $ | 3,074,947 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
In addition to our internal credit risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company's loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. Risk rating downgrades generally result in higher allowances for credit losses. | ||||||||||||||||||||||||||
The following tables present an aging analysis of our Non-PCI loans and leases by portfolio segment and class as of the dates indicated: | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater | Total | Current | Total | |||||||||||||||||||||
Past Due | Past Due | Than | Past Due | |||||||||||||||||||||||
90 Days | ||||||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | — | $ | — | $ | — | $ | — | $ | 180,553 | $ | 180,553 | ||||||||||||||
SBA 504 | 2,564 | — | — | 2,564 | 42,602 | 45,166 | ||||||||||||||||||||
Other | 12,466 | 560 | 2,406 | 15,432 | 2,183,713 | 2,199,145 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate mortgage | 15,030 | 560 | 2,406 | 17,996 | 2,406,868 | 2,424,864 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | — | — | — | — | 58,881 | 58,881 | ||||||||||||||||||||
Commercial | — | — | 2,013 | 2,013 | 148,196 | 150,209 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate construction | — | — | 2,013 | 2,013 | 207,077 | 209,090 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 66 | 407 | 259 | 732 | 586,454 | 587,186 | ||||||||||||||||||||
Unsecured | 83 | — | 68 | 151 | 153,601 | 153,752 | ||||||||||||||||||||
Asset-based | — | — | — | — | 202,428 | 202,428 | ||||||||||||||||||||
SBA 7(a) | 1,173 | 597 | 243 | 2,013 | 26,628 | 28,641 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total commercial | 1,322 | 1,004 | 570 | 2,896 | 969,111 | 972,007 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Leases | 2,530 | 132 | 244 | 2,906 | 266,863 | 269,769 | ||||||||||||||||||||
Consumer | 3,315 | 4 | — | 3,319 | 51,490 | 54,809 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 22,197 | $ | 1,700 | $ | 5,233 | $ | 29,130 | $ | 3,901,409 | $ | 3,930,539 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
At December 31, 2013 and 2012, the Company had no loans or leases that were greater than 90 days past due and still accruing interest. It is the Company's policy to discontinue accruing interest when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability in the normal course of business. At December 31, 2013, nonaccrual loans and leases totaled $46.8 million. Nonaccrual loans and leases included $4.2 million of loans 30 to 89 days past due and $37.3 million of current loans that were placed on nonaccrual status based on management's judgment regarding their collectability. | ||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater | Total | Current | Total | |||||||||||||||||||||
Past Due | Past Due | Than | Past Due | |||||||||||||||||||||||
90 Days | ||||||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | — | $ | — | $ | — | $ | — | $ | 181,144 | $ | 181,144 | ||||||||||||||
SBA 504 | 955 | — | 1,727 | 2,682 | 51,476 | 54,158 | ||||||||||||||||||||
Other | 4,098 | 54 | 3,271 | 7,423 | 1,697,428 | 1,704,851 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate mortgage | 5,053 | 54 | 4,998 | 10,105 | 1,930,048 | 1,940,153 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | — | — | — | — | 48,629 | 48,629 | ||||||||||||||||||||
Commercial | — | — | 1,245 | 1,245 | 80,085 | 81,330 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate construction | — | — | 1,245 | 1,245 | 128,714 | 129,959 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 964 | 161 | 872 | 1,997 | 460,128 | 462,125 | ||||||||||||||||||||
Unsecured | 3 | 135 | 230 | 368 | 80,207 | 80,575 | ||||||||||||||||||||
Asset-based | — | — | 176 | 176 | 239,254 | 239,430 | ||||||||||||||||||||
SBA 7(a) | 281 | 547 | 1,271 | 2,099 | 23,226 | 25,325 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total commercial | 1,248 | 843 | 2,549 | 4,640 | 802,815 | 807,455 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Leases | 225 | 132 | 244 | 601 | 173,772 | 174,373 | ||||||||||||||||||||
Consumer | 23 | 1 | — | 24 | 22,983 | 23,007 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 6,549 | $ | 1,030 | $ | 9,036 | $ | 16,615 | $ | 3,058,332 | $ | 3,074,947 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Nonaccrual loans totaled $41.8 million at December 31, 2012, including $4.2 million of loans 30 to 89 days past due and $28.6 million of current loans that were placed on nonaccrual status based on management's judgment regarding their collectability. | ||||||||||||||||||||||||||
The following tables present our Non-PCI nonaccrual and performing loans and leases by portfolio segment and class as of the dates indicated: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Nonaccrual | Performing | Total | Nonaccrual | Performing | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 6,723 | $ | 173,830 | $ | 180,553 | $ | 6,908 | $ | 174,236 | $ | 181,144 | ||||||||||||||
SBA 504 | 2,602 | 42,564 | 45,166 | 2,982 | 51,176 | 54,158 | ||||||||||||||||||||
Other | 18,648 | 2,180,497 | 2,199,145 | 16,585 | 1,688,266 | 1,704,851 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate mortgage | 27,973 | 2,396,891 | 2,424,864 | 26,475 | 1,913,678 | 1,940,153 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 389 | 58,492 | 58,881 | 1,057 | 47,572 | 48,629 | ||||||||||||||||||||
Commercial | 2,830 | 147,379 | 150,209 | 2,715 | 78,615 | 81,330 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate construction | 3,219 | 205,871 | 209,090 | 3,772 | 126,187 | 129,959 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 9,991 | 577,195 | 587,186 | 4,462 | 457,663 | 462,125 | ||||||||||||||||||||
Unsecured | 458 | 153,294 | 153,752 | 2,027 | 78,548 | 80,575 | ||||||||||||||||||||
Asset-based | 1,070 | 201,358 | 202,428 | 176 | 239,254 | 239,430 | ||||||||||||||||||||
SBA 7(a) | 3,037 | 25,604 | 28,641 | 4,181 | 21,144 | 25,325 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total commercial | 14,556 | 957,451 | 972,007 | 10,846 | 796,609 | 807,455 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Leases | 632 | 269,137 | 269,769 | 244 | 174,129 | 174,373 | ||||||||||||||||||||
Consumer | 394 | 54,415 | 54,809 | 425 | 22,582 | 23,007 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 46,774 | $ | 3,883,765 | $ | 3,930,539 | $ | 41,762 | $ | 3,033,185 | $ | 3,074,947 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Nonaccrual loans and leases and performing restructured loans are considered impaired for reporting purposes. The following table presents the composition of our impaired loans and leases as of the dates indicated: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Nonaccrual | Performing | Total | Nonaccrual | Performing | Total | |||||||||||||||||||||
Loans/Leases | Restructured | Impaired | Loans/Leases | Restructured | Impaired | |||||||||||||||||||||
Loans | Loans/Leases | Loans | Loans/Leases | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage | $ | 27,973 | $ | 34,303 | $ | 62,276 | $ | 26,475 | $ | 80,723 | $ | 107,198 | ||||||||||||||
Real estate construction | 3,219 | 4,293 | 7,512 | 3,772 | 21,678 | 25,450 | ||||||||||||||||||||
Commercial | 14,556 | 2,744 | 17,300 | 10,846 | 3,684 | 14,530 | ||||||||||||||||||||
Leases | 632 | — | 632 | 244 | — | 244 | ||||||||||||||||||||
Consumer | 394 | 308 | 702 | 425 | 203 | 628 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total | $ | 46,774 | $ | 41,648 | $ | 88,422 | $ | 41,762 | $ | 106,288 | $ | 148,050 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
At December 31, 2013, we had commitments in the amount of $997,000 to lend on nonaccrual loans but are under no obligation to honor such commitment as long as the loan is on nonaccrual. We had commitments in the amount of $7,000 to lend on performing restructured loans. For the years ended December 31, 2013, 2012, and 2011, no interest income was recorded on Non-PCI impaired loans during the time such loans were on nonaccrual status; any interest payments received were credited to principal. | ||||||||||||||||||||||||||
The following table presents information regarding our Non-PCI impaired loans and leases by portfolio segment and class as of the dates indicated: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Recorded | Unpaid | Related | |||||||||||||||||||||
Investment(1) | Principal | Allowance | Investment(1) | Principal | Allowance | |||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
With An Allowance Recorded: | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 5,717 | $ | 6,215 | $ | 198 | $ | 8,954 | $ | 9,640 | $ | 2,396 | ||||||||||||||
SBA 504 | 1,642 | 1,643 | 230 | 1,676 | 1,676 | 324 | ||||||||||||||||||||
Other | 15,937 | 16,571 | 1,760 | 58,364 | 60,262 | 5,107 | ||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 778 | 778 | 168 | 1,303 | 1,330 | 165 | ||||||||||||||||||||
Other | 1,250 | 1,250 | 1 | 6,723 | 6,723 | 206 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 4,377 | 4,692 | 4,270 | 2,477 | 2,731 | 1,865 | ||||||||||||||||||||
Unsecured | 801 | 829 | 375 | 2,396 | 3,121 | 2,234 | ||||||||||||||||||||
Asset-based | 1,070 | 1,070 | 180 | — | — | — | ||||||||||||||||||||
SBA 7(a) | 1,136 | 1,136 | 178 | 2,871 | 3,616 | 426 | ||||||||||||||||||||
Consumer | 424 | 471 | 240 | 466 | 506 | 265 | ||||||||||||||||||||
With No Related Allowance Recorded: | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 3,013 | $ | 3,385 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
SBA 504 | 2,602 | 3,646 | — | 2,982 | 3,755 | — | ||||||||||||||||||||
Other | 33,365 | 46,062 | — | 35,222 | 39,503 | — | ||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Other | 5,484 | 9,923 | — | 17,424 | 21,085 | — | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 6,700 | 9,924 | — | 3,657 | 4,994 | — | ||||||||||||||||||||
Unsecured | 179 | 247 | — | 156 | 163 | — | ||||||||||||||||||||
Asset-based | — | — | — | 176 | 176 | — | ||||||||||||||||||||
SBA 7(a) | 3,037 | 4,945 | — | 2,797 | 4,057 | — | ||||||||||||||||||||
Leases | 632 | 632 | — | 244 | 244 | — | ||||||||||||||||||||
Consumer | 278 | 394 | — | 162 | 233 | — | ||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Real estate mortgage | $ | 62,276 | $ | 77,522 | $ | 2,188 | $ | 107,198 | $ | 114,836 | $ | 7,827 | ||||||||||||||
Real estate construction | 7,512 | 11,951 | 169 | 25,450 | 29,138 | 371 | ||||||||||||||||||||
Commercial | 17,300 | 22,843 | 5,003 | 14,530 | 18,858 | 4,525 | ||||||||||||||||||||
Leases | 632 | 632 | — | 244 | 244 | — | ||||||||||||||||||||
Consumer | 702 | 865 | 240 | 628 | 739 | 265 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 88,422 | $ | 113,813 | $ | 7,600 | $ | 148,050 | $ | 163,815 | $ | 12,988 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
-1 | ||||||||||||||||||||||||||
The recorded investment in a loan reflects the contractual amount due from the borrower reduced by charge-offs, any participation amount sold to a third party, interest payments on nonaccrual loans applied to principal, and purchase discounts. | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Weighted | Interest | Weighted | Interest | Weighted | Interest | |||||||||||||||||||||
Average | Income | Average | Income | Average | Income | |||||||||||||||||||||
Recorded | Recognized | Recorded | Recognized | Recorded | Recognized | |||||||||||||||||||||
Investment(1) | Investment(1) | Investment(1) | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
With An Allowance Recorded: | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 5,717 | $ | 81 | $ | 8,954 | $ | 80 | $ | 17,399 | $ | 622 | ||||||||||||||
SBA 504 | 1,642 | 90 | 827 | 41 | 895 | 21 | ||||||||||||||||||||
Other | 13,205 | 509 | 51,441 | 2,070 | 42,973 | 1,623 | ||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 778 | 14 | 1,303 | 11 | 2,520 | 66 | ||||||||||||||||||||
Other | 1,250 | 63 | 6,723 | 231 | 5,375 | 113 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 3,281 | 29 | 2,219 | 48 | 4,745 | 66 | ||||||||||||||||||||
Unsecured | 772 | 33 | 2,273 | 20 | 2,767 | 24 | ||||||||||||||||||||
Asset-based | 569 | — | — | — | — | — | ||||||||||||||||||||
SBA 7(a) | 1,136 | 56 | 2,593 | 53 | 1,761 | 86 | ||||||||||||||||||||
Consumer | 425 | 10 | 389 | 7 | 291 | — | ||||||||||||||||||||
With No Related Allowance Recorded: | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 3,013 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
SBA 504 | 2,601 | — | 1,472 | — | 1,916 | — | ||||||||||||||||||||
Other | 27,912 | 1,060 | 29,316 | 1,523 | 13,827 | 678 | ||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | — | — | — | — | 611 | — | ||||||||||||||||||||
Other | 4,866 | 11 | 17,424 | 589 | 14,904 | 375 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 3,410 | 20 | 1,657 | 27 | 1,584 | — | ||||||||||||||||||||
Unsecured | 157 | — | 148 | — | 499 | — | ||||||||||||||||||||
Asset-based | — | — | 132 | — | 14 | — | ||||||||||||||||||||
SBA 7(a) | 2,571 | — | 2,601 | 24 | 5,753 | 15 | ||||||||||||||||||||
Leases | 245 | — | 224 | — | — | — | ||||||||||||||||||||
Consumer | 161 | — | 136 | — | 234 | 27 | ||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Real estate mortgage | $ | 54,090 | $ | 1,740 | $ | 92,010 | $ | 3,714 | $ | 77,010 | $ | 2,944 | ||||||||||||||
Real estate construction | 6,894 | 88 | 25,450 | 831 | 23,410 | 554 | ||||||||||||||||||||
Commercial | 11,896 | 138 | 11,623 | 172 | 17,123 | 191 | ||||||||||||||||||||
Leases | 245 | — | 224 | — | — | — | ||||||||||||||||||||
Consumer | 586 | 10 | 525 | 7 | 525 | 27 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 73,711 | $ | 1,976 | $ | 129,832 | $ | 4,724 | $ | 118,068 | $ | 3,716 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
-1 | ||||||||||||||||||||||||||
For the loans and leases reported as impaired at December 31, 2013, 2012, and 2011, amounts were calculated based on the period of time such loans and leases were impaired during the reporting period. | ||||||||||||||||||||||||||
The following tables present Non-PCI new troubled debt restructurings and defaulted troubled debt restructurings for the years indicated: | ||||||||||||||||||||||||||
Troubled Debt Restructurings | Troubled Debt | |||||||||||||||||||||||||
Restructurings | ||||||||||||||||||||||||||
That Subsequently | ||||||||||||||||||||||||||
Pre- | Post- | Defaulted(1) | ||||||||||||||||||||||||
Modification | Modification | |||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||
Number | Investment | Investment | Number | Recorded | ||||||||||||||||||||||
of | of | Investment | ||||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Other | 14 | $ | 16,223 | $ | 16,223 | 2 | $ | 1,844 | ||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 1 | 390 | 390 | — | — | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 11 | 5,618 | 5,618 | 1 | 419 | |||||||||||||||||||||
Unsecured | 5 | 521 | 521 | 2 | 66 | |||||||||||||||||||||
Asset-based | 1 | 2,032 | 2,032 | 1 | 1,070 | |||||||||||||||||||||
SBA 7(a) | 4 | 137 | 137 | — | — | |||||||||||||||||||||
Consumer | 2 | 125 | 125 | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Total | 38 | $ | 25,046 | $ | 25,046 | 6 | $ | 3,399 | -2 | |||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
SBA 504 | 2 | $ | 1,680 | $ | 1,680 | — | $ | — | ||||||||||||||||||
Other | 8 | 14,861 | 13,840 | — | — | |||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Other | 3 | 6,919 | 6,919 | — | — | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 7 | 1,652 | 1,652 | 2 | 458 | |||||||||||||||||||||
Unsecured | 5 | 317 | 317 | — | — | |||||||||||||||||||||
SBA 7(a) | 4 | 1,216 | 1,216 | 1 | 873 | |||||||||||||||||||||
Consumer | 1 | 206 | 206 | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Total | 30 | $ | 26,851 | $ | 25,830 | 3 | $ | 1,331 | -3 | |||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | 1 | $ | 2,086 | $ | 2,086 | — | $ | — | ||||||||||||||||||
SBA 504 | 1 | 619 | 619 | — | — | |||||||||||||||||||||
Other | 35 | 56,201 | 56,008 | 3 | 2,914 | |||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Other | 6 | 14,906 | 14,906 | 1 | 1,492 | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 15 | 2,780 | 2,780 | — | — | |||||||||||||||||||||
Unsecured | 4 | 581 | 581 | — | — | |||||||||||||||||||||
SBA 7(a) | 15 | 3,515 | 3,515 | 3 | 59 | |||||||||||||||||||||
Consumer | 1 | 144 | 144 | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Total | 78 | $ | 80,832 | $ | 80,639 | 7 | $ | 4,465 | -4 | |||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||||||||
The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Represents the balance at December 31, 2013 and is net of charge-offs of $1.6 million. | ||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||
Represents the balance at December 31, 2012 and is net of charge-offs of $921,000. | ||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||
Represents the balance at December 31, 2011 and is net of charge-offs of $4.5 million. | ||||||||||||||||||||||||||
Purchased Credit Impaired (PCI) Loans | ||||||||||||||||||||||||||
The following table reflects the PCI loans by portfolio segment as of the dates indicated: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Amount | % of | Amount | % of | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Real estate mortgage | $ | 412,791 | 96 | % | $ | 534,378 | 94 | % | ||||||||||||||||||
Real estate construction | 12,015 | 3 | 23,220 | 4 | ||||||||||||||||||||||
Commercial | 3,021 | 1 | 11,130 | 2 | ||||||||||||||||||||||
Consumer | 424 | — | 108 | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Total outstanding PCI loans | 428,251 | 100 | % | 568,836 | 100 | % | ||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Less: | ||||||||||||||||||||||||||
Discount | (45,455 | ) | (50,951 | ) | ||||||||||||||||||||||
Allowance for loan losses | (21,793 | ) | (26,069 | ) | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Total net PCI loans | $ | 361,003 | $ | 491,816 | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
The following table summarizes the accretable yield on the purchased credit impaired loans acquired in the FCAL acquisition as of May 31, 2013: | ||||||||||||||||||||||||||
May 31, 2013 | ||||||||||||||||||||||||||
Accretable Yield | ||||||||||||||||||||||||||
Covered | Non-Covered | Total | ||||||||||||||||||||||||
PCI Loans | PCI Loans | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Undiscounted contractual cash flows | $ | 42,881 | $ | 41,936 | $ | 84,817 | ||||||||||||||||||||
Undiscounted cash flows not expected to be collected (nonaccretable difference) | (16,050 | ) | (16,337 | ) | (32,387 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Undiscounted cash flows expected to be collected | 26,831 | 25,599 | 52,430 | |||||||||||||||||||||||
Estimated fair value of loans acquired | (24,341 | ) | (19,805 | ) | (44,146 | ) | ||||||||||||||||||||
Acquired accrued interest receivable | (66 | ) | (122 | ) | (188 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Accretable yield | $ | 2,424 | $ | 5,672 | $ | 8,096 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
The following table summarizes the changes in the carrying amount of PCI loans and accretable yield on those loans for the years indicated: | ||||||||||||||||||||||||||
Covered | Non-Covered | |||||||||||||||||||||||||
PCI Loans | PCI Loans | |||||||||||||||||||||||||
Carrying | Accretable | Carrying | Accretable | |||||||||||||||||||||||
Amount | Yield | Amount | Yield | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 879,486 | $ | (290,665 | ) | $ | — | $ | — | |||||||||||||||||
Accretion | 65,282 | 65,282 | — | — | ||||||||||||||||||||||
Payments received | (257,440 | ) | — | — | — | |||||||||||||||||||||
Increase in expected cash flows, net | — | (33,882 | ) | — | — | |||||||||||||||||||||
Provision for credit losses | (13,270 | ) | — | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance, December 31, 2011 | 674,058 | (259,265 | ) | — | — | |||||||||||||||||||||
Accretion | 49,562 | 49,562 | — | — | ||||||||||||||||||||||
Payments received | (232,623 | ) | — | — | — | |||||||||||||||||||||
Decrease in expected cash flows, net | — | 13,681 | — | — | ||||||||||||||||||||||
Negative provision for credit losses | 819 | — | — | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance, December 31, 2012 | 491,816 | (196,022 | ) | — | — | |||||||||||||||||||||
Addition from the FCAL acquisition | 24,341 | (2,424 | ) | 19,805 | (5,672 | ) | ||||||||||||||||||||
Accretion | 44,304 | 44,304 | 2,376 | 2,376 | ||||||||||||||||||||||
Payments received | (223,994 | ) | — | (1,855 | ) | — | ||||||||||||||||||||
Decrease (increase) in expected cash flows, net | — | 20,494 | — | (2,624 | ) | |||||||||||||||||||||
Negative provision for credit losses | 4,210 | — | — | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance, December 31, 2013 | $ | 340,677 | $ | (133,648 | ) | $ | 20,326 | $ | (5,920 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
The following tables present the credit risk rating categories for PCI loans by portfolio segment as of the dates indicated. Nonclassified loans are those with a credit risk rating of either pass or special mention, while classified loans are those with a credit risk rating of either substandard or doubtful. | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Nonclassified | Classified | Total | Nonclassified | Classified | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage | $ | 216,092 | $ | 155,042 | $ | 371,134 | $ | 331,341 | $ | 152,716 | $ | 484,057 | ||||||||||||||
Real estate construction | 4,399 | 6,028 | 10,427 | 6,311 | 18,334 | 24,645 | ||||||||||||||||||||
Commercial | 569 | 405 | 974 | 3,420 | 5,651 | 9,071 | ||||||||||||||||||||
Consumer | — | 261 | 261 | — | 112 | 112 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total PCI loans, net | $ | 221,060 | $ | 161,736 | $ | 382,796 | $ | 341,072 | $ | 176,813 | $ | 517,885 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Our federal and state banking regulators, as an integral part of their examination process, periodically review the Company's loan classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. | ||||||||||||||||||||||||||
OTHER_REAL_ESTATE_OWNED_OREO
OTHER REAL ESTATE OWNED (OREO) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
OTHER REAL ESTATE OWNED (OREO) | ' | |||||||||||||||||||
OTHER REAL ESTATE OWNED (OREO) | ' | |||||||||||||||||||
NOTE 8—OTHER REAL ESTATE OWNED (OREO) | ||||||||||||||||||||
The following tables summarize OREO by property type at the dates indicated: | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Property Type | Non-Covered | Covered | Total | Non-Covered | Covered | Total | ||||||||||||||
OREO | OREO | OREO | OREO | OREO | OREO | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Commercial real estate | $ | 10,672 | $ | 5,081 | $ | 15,753 | $ | 1,684 | $ | 11,635 | $ | 13,319 | ||||||||
Construction and land development | 31,950 | 3,113 | 35,063 | 31,888 | 6,708 | 38,596 | ||||||||||||||
Multi-family | — | 835 | 835 | — | 4,239 | 4,239 | ||||||||||||||
Single family residence | 179 | 7 | 186 | — | 260 | 260 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total OREO, net | $ | 42,801 | $ | 9,036 | $ | 51,837 | $ | 33,572 | $ | 22,842 | $ | 56,414 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The following table presents a rollforward of OREO, net of the valuation allowance, for the years indicated: | ||||||||||||||||||||
Non-Covered | Covered | Total | ||||||||||||||||||
OREO | OREO | OREO | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
OREO Activity: | ||||||||||||||||||||
Balance, December 31, 2010 | $ | 25,598 | $ | 55,816 | $ | 81,414 | ||||||||||||||
Foreclosures | 34,743 | 33,940 | 68,683 | |||||||||||||||||
Payments to third parties(1) | 1,619 | 10 | 1,629 | |||||||||||||||||
Provision for losses | (5,026 | ) | (11,968 | ) | (16,994 | ) | ||||||||||||||
Reductions related to sales | (8,522 | ) | (44,292 | ) | (52,814 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2011 | 48,412 | 33,506 | 81,918 | |||||||||||||||||
Addition from the APB acquisition | 1,561 | — | 1,561 | |||||||||||||||||
Foreclosures | 4,223 | 35,984 | 40,207 | |||||||||||||||||
Payments to third parties(1) | 889 | — | 889 | |||||||||||||||||
Provision for losses | (3,820 | ) | (10,513 | ) | (14,333 | ) | ||||||||||||||
Reductions related to sales | (17,693 | ) | (36,135 | ) | (53,828 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2012 | 33,572 | 22,842 | 56,414 | |||||||||||||||||
Addition from the FCAL acquisition | 10,092 | 3,680 | 13,772 | |||||||||||||||||
Foreclosures | 7,891 | 7,525 | 15,416 | |||||||||||||||||
Payments to third parties(1) | 39 | — | 39 | |||||||||||||||||
Provision for losses | (818 | ) | (1,697 | ) | (2,515 | ) | ||||||||||||||
Reductions related to sales | (7,975 | ) | (23,314 | ) | (31,289 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2013 | $ | 42,801 | $ | 9,036 | $ | 51,837 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
Represents amounts due to participants and for guarantees, property taxes or other prior lien positions. | ||||||||||||||||||||
The following table presents a rollforward of our OREO valuation allowance for the years indicated: | ||||||||||||||||||||
Non-Covered | Covered | Total | ||||||||||||||||||
OREO | OREO | OREO | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
OREO Valuation Allowance Activity: | ||||||||||||||||||||
Balance, December 31, 2010 | $ | 13,831 | $ | 3,982 | $ | 17,813 | ||||||||||||||
Provision for losses | 5,026 | 11,968 | 16,994 | |||||||||||||||||
Selling costs(1) | — | 2,527 | 2,527 | |||||||||||||||||
Due from the SBA | 108 | — | 108 | |||||||||||||||||
Reductions related to sales | (9,431 | ) | (7,436 | ) | (16,867 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2011 | 9,534 | 11,041 | 20,575 | |||||||||||||||||
Provision for losses | 3,820 | 10,513 | 14,333 | |||||||||||||||||
Selling costs(1) | — | 876 | 876 | |||||||||||||||||
Reductions related to sales | (7,936 | ) | (11,167 | ) | (19,103 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2012 | 5,418 | 11,263 | 16,681 | |||||||||||||||||
Provision for losses | 818 | 1,697 | 2,515 | |||||||||||||||||
Reductions related to sales | (766 | ) | (7,116 | ) | (7,882 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2013 | $ | 5,470 | $ | 5,844 | $ | 11,314 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
During 2011, the FDIC changed its methodology such that selling costs are reimbursed at the time of sale rather than at the time of foreclosure. Such amounts will be realized when the related OREO parcels are sold. | ||||||||||||||||||||
FDIC_LOSS_SHARING_ASSET
FDIC LOSS SHARING ASSET | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
FDIC LOSS SHARING ASSET | ' | ||||||||||
FDIC LOSS SHARING ASSET | ' | ||||||||||
NOTE 9—FDIC LOSS SHARING ASSET | |||||||||||
The following table presents changes in the FDIC loss sharing asset for the years indicated: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
FDIC loss sharing asset, beginning of year | $ | 57,475 | $ | 95,187 | |||||||
Addition from the FCAL acquisition | 17,241 | — | |||||||||
FDIC share of additional losses, net of recoveries | 4,969 | 6,169 | |||||||||
Cash received from FDIC | (7,332 | ) | (33,223 | ) | |||||||
Net amortization | (26,829 | ) | (10,658 | ) | |||||||
| | | | | | | | ||||
FDIC loss sharing asset, end of year | $ | 45,524 | $ | 57,475 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
The following table presents information about the composition of the FDIC loss sharing asset, the true-up liability, and the non-single family and the single family covered assets as of the date indicated: | |||||||||||
December 31, 2013 | |||||||||||
Affinity | Los Padres | Western | San Luis | Total | |||||||
Bank | Bank | Commercial | Trust | ||||||||
Bank | Bank | ||||||||||
(In thousands) | |||||||||||
FDIC loss sharing asset | $9,732 | $22,962 | $1,709 | $11,121 | $45,524 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
True-up liability | N/A | N/A | $1,522 | $5,125 | $6,647 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Non-single family covered assets(1) | $199,686 | $133,201 | $16,309 | $44,859 | $394,055 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Single family covered assets | $14,197 | $74,367 | N/A | $37,997 | $126,561 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Loss sharing expiration dates: | |||||||||||
Non-single family | 3rd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | |||||||
2014 | 2015 | 2015 | 2016 | ||||||||
Single family | 3rd Quarter 2019 | 3rd Quarter 2020 | N/A | 1st Quarter 2021 | |||||||
Loss recovery expiration dates: | |||||||||||
Non-single family | 3rd Quarter 2017 | 3rd Quarter 2018 | 4th Quarter 2018 | 1st Quarter 2019 | |||||||
Single family | 3rd Quarter 2019 | 3rd Quarter 2020 | N/A | 1st Quarter 2021 | |||||||
-1 | |||||||||||
Excludes securities. | |||||||||||
PREMISES_AND_EQUIPMENT_NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PREMISES AND EQUIPMENT, NET | ' | |||||||
PREMISES AND EQUIPMENT, NET | ' | |||||||
NOTE 10—PREMISES AND EQUIPMENT, NET | ||||||||
The following table presents the components of premises and equipment as of the dates indicated: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Land | $ | 6,755 | $ | 2,027 | ||||
Buildings | 12,725 | 5,578 | ||||||
Furniture, fixtures and equipment | 31,080 | 28,272 | ||||||
Leasehold improvements | 26,091 | 23,996 | ||||||
| | | | | | | | |
Premises and equipment, gross | 76,651 | 59,873 | ||||||
Less: accumulated depreciation and amortization | (44,216 | ) | (40,370 | ) | ||||
| | | | | | | | |
Premises and equipment, net | $ | 32,435 | $ | 19,503 | ||||
| | | | | | | | |
| | | | | | | | |
Depreciation and amortization expense was $6.0 million, $5.4 million, and $5.4 million for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||
We have obligations under a number of noncancelable operating leases for premises and equipment. The following table presents future minimum rental payments under noncancelable operating leases as of December 31, 2013: | ||||||||
Estimated Lease Payments for | Amount | |||||||
Year Ending December 31, | ||||||||
(In thousands) | ||||||||
2014 | $ | 17,279 | ||||||
2015 | 15,055 | |||||||
2016 | 12,317 | |||||||
2017 | 9,824 | |||||||
2018 | 7,461 | |||||||
Thereafter | 12,449 | |||||||
| | | | | ||||
Total | $ | 74,385 | ||||||
| | | | | ||||
| | | | | ||||
Total gross rental expense for the years ended December 31, 2013, 2012, and 2011 was $17.6 million, $16.8 million, and $16.7 million, respectively. Most of the leases provide that the Company pays maintenance, insurance and certain other operating expenses applicable to the leased premises in addition to the monthly rental payments. | ||||||||
Total rental income for the years ended December 31, 2013, 2012, and 2011, was approximately $750,000, $505,000, and $587,000, respectively. The future minimum rental payments to be received under noncancelable subleases are $2.6 million. | ||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
DEPOSITS | ' | |||||||||||||
DEPOSITS | ' | |||||||||||||
NOTE 11—DEPOSITS | ||||||||||||||
The following table presents the components of interest-bearing deposits as of the dates indicated: | ||||||||||||||
December 31, | ||||||||||||||
Deposit Category | 2013 | 2012 | ||||||||||||
(In thousands) | ||||||||||||||
Interest checking deposits | $ | 620,622 | $ | 513,389 | ||||||||||
Money market deposits | 1,458,910 | 1,282,513 | ||||||||||||
Savings deposits | 218,638 | 153,680 | ||||||||||||
Time deposits under $100,000 | 225,360 | 274,622 | ||||||||||||
Time deposits of $100,000 or more | 439,011 | 545,705 | ||||||||||||
| | | | | | | | |||||||
Total interest-bearing deposits | $ | 2,962,541 | $ | 2,769,909 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Brokered time deposits totaled $49.4 million at December 31, 2013, and $37.7 million at December 31, 2012, all of which were part of the CDARS program. The CDARS program represents deposits that are participated with other FDIC insured financial institutions through the CDARS program as a means to provide FDIC deposit insurance coverage for the full amount of our customers' deposits. | ||||||||||||||
The following table summarizes the maturities of time deposits as of the date indicated: | ||||||||||||||
December 31, 2013 | ||||||||||||||
Year of Maturity | Time | Time | Total | Rate | ||||||||||
Deposits | Deposits | Time | ||||||||||||
Under | $100,000 | Deposits | ||||||||||||
$100,000 | or More | |||||||||||||
(Dollars in thousands) | ||||||||||||||
2014 | $ | 173,820 | $ | 343,463 | $ | 517,283 | 0.49 | % | ||||||
2015 | 17,200 | 36,419 | 53,619 | 0.82 | % | |||||||||
2016 | 29,151 | 47,769 | 76,920 | 0.78 | % | |||||||||
2017 | 2,694 | 7,472 | 10,166 | 1.1 | % | |||||||||
2018 | 2,425 | 3,888 | 6,313 | 0.78 | % | |||||||||
2019 | 70 | — | 70 | 0.7 | % | |||||||||
| | | | | | | | | | | | | | |
Total | $ | 225,360 | $ | 439,011 | $ | 664,371 | 0.56 | % | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
BORROWINGS_AND_SUBORDINATED_DE
BORROWINGS AND SUBORDINATED DEBENTURES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
BORROWINGS AND SUBORDINATED DEBENTURES | ' | ||||||||||||||||||||||||
BORROWINGS AND SUBORDINATED DEBENTURES | ' | ||||||||||||||||||||||||
NOTE 12—BORROWINGS AND SUBORDINATED DEBENTURES | |||||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||
The following table summarizes our borrowings as of the dates indicated: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Non-recourse debt | $ | 7,126 | 6.3 | % | $ | 12,591 | 6.28 | % | |||||||||||||||||
Overnight FHLB advances | 106,600 | 0.06 | % | — | — | ||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Total borrowings | $ | 113,726 | $ | 12,591 | |||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
The nonrecourse debt represents the payment stream of certain leases sold to third parties. The debt is secured by the equipment in the leases and all interest rates are fixed. As of December 31, 2013, this debt had a weighted average remaining maturity of 2 years. | |||||||||||||||||||||||||
The Bank has established secured and unsecured lines of credit. We may borrow funds from time to time on a term or overnight basis from the FHLB, the FRBSF, or other financial institutions. | |||||||||||||||||||||||||
FHLB Secured Lines of Credit. The borrowing arrangements with the FHLB are based on two separate FHLB programs, one collateralized by loans and the other by securities available-for-sale. At December 31, 2013, our FHLB borrowing lines were secured by: (1) a blanket lien on certain qualifying loans in our loan portfolio which were not pledged to the FRBSF, and (2) available-for-sale securities with a carrying value of $10.9 million. As of December 31, 2013, our outstanding balance was $106.6 million, and our aggregate remaining borrowing capacity under the FHLB secured borrowing lines was $1.2 billion. There was no balance outstanding at December 31, 2012. | |||||||||||||||||||||||||
Federal Funds Arrangements with Commercial Banks. As of December 31, 2013, 2012, the Bank had unsecured lines of credit with correspondent banks, subject to availability, in the amount of $80.0 million. These lines are renewable annually and have no unused commitment fees. As of December 31, 2013 and 2012, there were no balances outstanding. | |||||||||||||||||||||||||
FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. The secured borrowing capacity is collateralized by liens covering $702.6 million of certain qualifying loans. As of December 31, 2013, our secured FRBSF borrowing capacity was $563.6 million. As of December 31, 2013 and 2012, there were no balances outstanding. | |||||||||||||||||||||||||
Subordinated Debentures | |||||||||||||||||||||||||
The Company had an aggregate of $132.6 million and $108.3 million in subordinated debentures outstanding at December 31, 2013 and 2012, respectively. With the FCAL acquisition, we added $26.8 million of subordinated debentures. These subordinated debentures were issued in separate series and each issuance had a maturity of thirty years from its date of issue. The subordinated debentures are variable-rate instruments and are each callable at par with no prepayment penalty. The subordinated debentures were issued to trusts established by us or entities we have acquired, which in turn issued trust preferred securities, which totaled $131.0 million at December 31, 2013. The proceeds of the subordinated debentures were used primarily to fund several of our acquisitions and to augment regulatory capital. | |||||||||||||||||||||||||
See Note 20, Dividend Availability and Regulatory Matters, for information regarding the regulatory capital treatment of trust preferred securities and the payment of interest on subordinated debentures. | |||||||||||||||||||||||||
The following table summarizes the terms of each issuance of the subordinated debentures outstanding as of the dates indicated: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Date | Maturity | Next | |||||||||||||||||||||||
Issued | Date | Reset | |||||||||||||||||||||||
Series | Amount | Rate(1) | Amount | Rate(2) | Rate Index | Date | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Trust V | $ | 10,310 | 3.34 | % | $ | 10,310 | 3.41 | % | 8/15/03 | 9/17/33 | 3 month LIBOR + 3.10 | 3/13/14 | |||||||||||||
Trust VI | 10,310 | 3.29 | % | 10,310 | 3.36 | % | 9/3/03 | 9/15/33 | 3 month LIBOR + 3.05 | 3/12/14 | |||||||||||||||
Trust CII | 5,155 | 3.19 | % | 5,155 | 3.26 | % | 9/17/03 | 9/17/33 | 3 month LIBOR + 2.95 | 3/13/14 | |||||||||||||||
Trust VII | 61,856 | 2.99 | % | 61,856 | 3.05 | % | 2/5/04 | 4/23/34 | 3 month LIBOR + 2.75 | 4/28/14 | |||||||||||||||
Trust CIII | 20,619 | 1.93 | % | 20,619 | 2 | % | 8/15/05 | 9/15/35 | 3 month LIBOR + 1.69 | 3/12/14 | |||||||||||||||
Trust FCCI(3) | 16,495 | 1.84 | % | — | — | 1/25/07 | 3/15/37 | 3 month LIBOR + 1.60 | 3/12/14 | ||||||||||||||||
Trust FCBI(3) | 10,310 | 1.79 | % | — | — | 9/30/05 | 12/15/35 | 3 month LIBOR + 1.55 | 3/12/14 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Gross subordinated debentures | 135,055 | 108,250 | |||||||||||||||||||||||
Unamortized discount(4) | (2,410 | ) | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net subordinated debentures | $ | 132,645 | $ | 108,250 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||||||||
As of January 28, 2014. | |||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||
As of January 28, 2013. | |||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||
Acquired in the FCAL acquisition. | |||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||
Amount represents the fair value adjustment on trusts acquired in the FCAL acquisition. | |||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
NOTE 13—COMMITMENTS AND CONTINGENCIES | ||||||||
Lending Commitments | ||||||||
The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit, and commitments to purchase equipment being acquired for lease to others. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in those particular classes of financial instruments. | ||||||||
The following presents a summary of the financial instruments described above as of the dates indicated: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Total loan commitments to extend credit | $ | 1,001,740 | $ | 849,607 | ||||
Standby letters of credit | 39,200 | 27,534 | ||||||
Commitments to purchase equipment being acquired for lease to others | 8,475 | 4,399 | ||||||
| | | | | | | | |
$ | 1,049,415 | $ | 881,540 | |||||
| | | | | | | | |
| | | | | | | | |
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. | ||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support private borrowing arrangements. Most guarantees will expire within one year. The Company generally requires collateral or other security to support financial instruments with credit risk. | ||||||||
In addition, the Company has investments in low income housing project partnerships, which provide the Company income tax credits, and in a few small business investment companies. The investments call for capital contributions up to an amount specified in the partnership agreements. As of December 31, 2013 and 2012, the Company had commitments to contribute capital to these entities totaling $11.0 million and $10.8 million, respectively. | ||||||||
Legal Matters | ||||||||
In the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon information currently available to us, any resulting liability, in addition to amounts already accrued, taking into consideration insurance which may be applicable, would not have a material adverse effect on the Company's financial statements or operations. | ||||||||
FCAL-Related Litigation | ||||||||
As set forth below, there are a number of litigation matters pending against FCB, the defense of which PacWest has assumed. | ||||||||
Fourteen lawsuits have been filed in the Superior Court of the State of California, County of Los Angeles against FCB, among others, by various former clients of political campaign and non-profit organization treasurer Kinde Durkee. The lawsuits are entitled (i) Wardlaw, et al. v. First California Bank, et al. (Case No. SC 114232), filed September 23, 2011; (ii) Lou Correa for State Senate, Orange County's Youth et al. v. First California Bank, et al. (Case No. BC 479872), filed February 29, 2012; (iii) Committee(s) to Re-elect Lorreta Sanchez, Linda Sanchez, and Susan Davis, et al. v. First California Bank, et al. (Case No. BC 479873), filed February 29, 2012; (iv) Holden for Assembly v. First California Bank, et al. (Case No. BC 489604), filed August 3, 2012; (v) Latino Diabetes Ass'n v. First California Bank, et al. (Case No. BC 489605), filed August 3, 2012; (vi) Jose Solorio Assembly Officeholder Committee, et al. v. First California Bank, et al. (Case No. 492855), filed September 27, 2012; (vii) Foster for Treasurer 2014, et al. v. First California Bank, et al. (Case No. BC 492878), filed September 27, 2012; (viii) Los Angeles County Democratic Central Committee, et al. v. First California Bank, et al. (Case No. BC 492854), filed September 27, 2012; (ix) FCAL v. 68th AD Democratic PAC, et al. (Case No. : BC470812), filed September 23, 2011(the "Interpleader Action"); (x) First California Bank v. Shallman, John, Shallman Communication/John D. Shallman v. FCB (Case No. LC099226), filed December 11, 2012; (xi) National Popular Vote, et al. v. First California Bank, et al. (Case No. BC501213) filed February 19, 2013; (xii) Zine v. First California Bank, et al. (Case No. BC504476), filed April 2, 2013; (xiii) Rothman, Elliott v. FCAL (Case No. BC511180), filed June 5, 2013; and (xiv) Ted Lieu as Treasurer for Ted Lieu for Assembly 2008 v. First California Bank (Case No. BC470182), filed November 18, 2011. | ||||||||
Plaintiffs in each of the cases claim, among other things, that FCB aided and abetted a fraud and unlawful conversion by Ms. Durkee and/or her affiliated company of funds held in accounts at FCB. Based largely on the same alleged conduct, plaintiffs also assert claims for an alleged violation of California Business & Professions Code Section 17200 and for declaratory relief. Plaintiffs seek compensatory and punitive damages, as well as various forms of equitable and declaratory relief. | ||||||||
Each of the cases is pending before the same judge, who is coordinating their progress. FCB has answered each of the complaints, and the parties are engaged in discovery. | ||||||||
On September 23, 2011, FCB filed a Complaint-in-Interpleader in the Superior Court of the State of California, County of Los Angeles (Case No. BC 470182), pursuant to which FCB interpleaded the sum of $2,539,049 as the amounts on deposit in accounts at FCB that were controlled by Ms. Durkee on behalf of the several hundred named defendants (the "Interpleader Action"). FCB seeks an order requiring the defendants to interplead and litigate their respective claims, discharging FCB from liability, and restraining proceedings or actions against FCB by the defendants with respect to those amounts. On December 6, 2011, the Interpleader Action was designated as complex and transferred to the Superior Court's complex litigation division. It has been related to the other pending actions that relate to the conduct of Ms. Durkee. | ||||||||
On June 18, 2012, FCB moved for summary judgment in the Interpleader Action. At hearings held in late 2012 and early 2013, the Superior Court entered summary judgment with respect to a majority of the accounts at issue. Those sums have been paid by the Superior Court to the former accountholders. There still remains a total of $99,884.79 on deposit with the Court in the Interpleader Action. | ||||||||
In September 2013, Durkee pled guilty to mail fraud resulting in a judgment of $9.7 million being entered against her. The parties participated in a mediation on October 16, 2013, which did not result in settlement of any claims. Thereafter, at a Further Status Conference on December 19, 2013, the Court scheduled a jury trial on August 13, 2014 as to the following cases: Orange County's Youth, Latino Diabetes Association, Jose Solorio Assembly Officeholder Committee, Holden for Assembly, and Committee(s) to Re-elect Lorreta Sanchez, Linda Sanchez, and Susan Davis. | ||||||||
CapitalSource Merger-Related Litigation | ||||||||
Since July 24, 2013, 11 putative stockholder class action lawsuits (the "Merger Litigations") were filed against PacWest and certain other defendants in connection with PacWest entering into the CapitalSource Merger Agreement in which PacWest agreed to acquire CapitalSource. The CapitalSource Merger Agreement was publicly announced on July 22, 2013. Five of the 11 actions were filed in Superior Court of California, Los Angeles County: (1) Engel v. CapitalSource, Inc. et al., Case No. BC516267, filed on July 24, 2013; (2) Miller v. Fremder et al., Case No. BC516590, filed on July 29, 2013; (3) Basu v. CapitalSource, Inc. et al., Case No. BC516775, filed on July 31, 2013; (4) Holliday v. PacWest Bancorp et al., Case No. BC517209, filed on August 5, 2013 and (5) Iron Workers Mid-South Pension Fund v. CapitalSource Inc. et al., Case No. BC517698, filed on August 8, 2013 (collectively, the "California Actions"). The other six actions were filed in the Court of Chancery of the State of Delaware: (1) Fosket v. Byrnes et al., Case No. 8765, filed on August 1, 2013; (2) Bennett v. CapitalSource, Inc. et al., Case No. 8770, filed on August 2, 2013; (3) Chalfant v. CapitalSource et al., Case No. 8777, filed on August 6, 2013; (4) Oliveira v. CapitalSource, Inc. et al., Case No. 8779, filed on August 7, 2013; (5) Desai v. CapitalSource, Inc. et al., Case No. 8804, filed on August 13, 2013; and (6) Fattore v. CapitalSource, Inc. et al., Case No. 8927, filed on September 19, 2013 (collectively, the "Delaware Actions"). | ||||||||
On August 15, 2013, the Delaware Actions were consolidated into a single action, captioned In re CapitalSource Inc. Stockholder Litigation, Consol. C.A. No. 8765-CS, and assigned to Chancellor Leo E. Strine. On September 25, 2013, plaintiffs in the Delaware Actions filed a Verified Consolidated Amended Class Action Complaint (the "Delaware Consolidated Complaint"). On September 17, 2013, the California Actions were consolidated into a single action, captioned In re CapitalSource Inc. Shareholder Litigation, Lead Case No. BC516267, and assigned to Judge Elihu M. Berle. On October 2, 2013, plaintiffs in the California Actions filed an Amended Consolidated Complaint (the "California Consolidated Complaint"). | ||||||||
The Delaware Consolidated Complaint and the California Consolidated Complaint each allege that the members of the CapitalSource board of directors breached their fiduciary duties to CapitalSource stockholders by approving the proposed merger for inadequate consideration; approving the transaction in order to obtain benefits not equally shared by other CapitalSource stockholders; entering into the merger agreement containing preclusive deal protection devices; and failing to take steps to maximize the value to be paid to the CapitalSource stockholders. The Delaware Consolidated Complaint and the California Consolidated Complaint also each allege claims against CapitalSource and PacWest for aiding and abetting these alleged breaches of fiduciary duties. Plaintiffs in these actions seek, among other things, declaratory and injunctive relief concerning the alleged breaches of fiduciary duties, injunctive relief prohibiting consummation of the merger, rescission, an accounting by defendants, damages and attorneys' fees and costs, and other and further relief. The judge in the Delaware Actions ruled on October 23, 2013, that discovery would proceed in the Delaware Actions and that it would be shared with the plaintiffs in the California Actions and that the California Actions would be stayed while that process takes place. Thereafter, on October 28, 2013, the California Actions' plaintiffs stipulated in the California Actions that they would participate in the discovery process in the Delaware Actions and the administrative stay in the California Actions will remain in place unless and until the Delaware Actions are abandoned. | ||||||||
On December 20, 2013, the parties in the California and Delaware Actions entered into a Memorandum of Understanding setting forth the terms of an agreement in principle to settle both the California and Delaware Actions, subject to certain conditions and future occurrences. A further status conference is set in the California Actions for May 5, 2014. The Company expects to appear in the Delaware Actions for Court approval in the event a settlement is finalized by the parties. At this stage, it is not possible to predict the outcome of the proceedings or their impact on CapitalSource or the Company. | ||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
NOTE 14—FAIR VALUE MEASUREMENTS | |||||||||||||||||
ASC Topic 820, "Fair Value Measurement," defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: | |||||||||||||||||
• | |||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||
• | |||||||||||||||||
Level 2: Observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data, either directly or indirectly, for substantially the full term of the financial instrument. This category generally includes government agency and government-sponsored enterprise securities. | |||||||||||||||||
• | |||||||||||||||||
Level 3: Inputs to a valuation methodology that are unobservable, supported by little or no market activity, and significant to the fair value measurement. These valuation methodologies generally include pricing models, discounted cash flow models, or a determination of fair value that requires significant management judgment or estimation. This category also includes observable inputs from a pricing service not corroborated by observable market data, and includes our covered private label CMOs. | |||||||||||||||||
We use fair value to measure certain assets on a recurring basis, primarily securities available for sale; we have no liabilities being measured at fair value. For assets and liabilities measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered "nonrecurring" for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for impaired loans and other real estate owned and also to record impairment on certain assets, such as goodwill, core deposit intangibles and other long-lived assets. | |||||||||||||||||
The following tables present information on the assets measured and recorded at fair value on a recurring basis as of the dates indicated: | |||||||||||||||||
Fair Value Measurement as of December 31, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
(In thousands) | |||||||||||||||||
Measured on a Recurring Basis: | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Government agency and government-sponsored enterprise residential mortgage-backed securities | $ | 900,061 | $ | — | $ | 900,061 | $ | — | |||||||||
Covered private label CMOs | 37,904 | — | — | 37,904 | |||||||||||||
Municipal securities | 436,658 | — | 436,658 | — | |||||||||||||
Corporate debt securities | 82,707 | — | 82,707 | — | |||||||||||||
Government-sponsored enterprise debt securities | 9,872 | — | 9,872 | — | |||||||||||||
Other securities | 27,543 | 507 | 27,036 | — | |||||||||||||
| | | | | | | | | | | | | | ||||
$ | 1,494,745 | $ | 507 | $ | 1,456,334 | $ | 37,904 | ||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Fair Value Measurement as of December 31, 2012 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
(In thousands) | |||||||||||||||||
Measured on a Recurring Basis: | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Government agency and government-sponsored enterprise residential mortgage-backed securities | $ | 909,536 | $ | — | $ | 909,536 | $ | — | |||||||||
Covered private label CMOs | 44,684 | — | — | 44,684 | |||||||||||||
Municipal securities | 348,041 | — | 348,041 | — | |||||||||||||
Corporate debt securities | 42,365 | — | 42,365 | — | |||||||||||||
Other securities | 10,759 | 8,985 | 1,774 | — | |||||||||||||
| | | | | | | | | | | | | | ||||
$ | 1,355,385 | $ | 8,985 | $ | 1,301,716 | $ | 44,684 | ||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
There were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a recurring basis during 2013. | |||||||||||||||||
The following table presents information about quantitative inputs and assumptions used to evaluate the fair values provided by our third party pricing service for our Level 3 covered private label CMOs measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||
Covered Private Label CMO's: | Range of | Weighted | |||||||||||||||
Unobservable Inputs | Inputs | Average | |||||||||||||||
Input | |||||||||||||||||
Voluntary annual prepayment speeds | 0% - 34.4% | 5.9 | % | ||||||||||||||
Annual default rates | 0% - 42.5% | 3 | % | ||||||||||||||
Loss severity rates | 0% - 64.6% | 29.9 | % | ||||||||||||||
Discount rates | 0% - 11.1% | 5.2 | % | ||||||||||||||
The following table presents activity for assets measured at fair value on a recurring basis that are categorized as Level 3 for the years indicated: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Covered private label CMOs, beginning of year | $ | 44,684 | $ | 45,149 | $ | 50,437 | |||||||||||
Total realized in earnings(1) | 1,938 | 340 | 2,097 | ||||||||||||||
Total unrealized gain (loss) in comprehensive income | (1,204 | ) | 4,883 | (846 | ) | ||||||||||||
Net settlements | (7,514 | ) | (5,688 | ) | (6,539 | ) | |||||||||||
| | | | | | | | | | | |||||||
Covered private label CMOs, end of year | $ | 37,904 | $ | 44,684 | $ | 45,149 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
-1 | |||||||||||||||||
Includes other-than-temporary impairment loss of $1.1 million for 2012. | |||||||||||||||||
The following tables present assets measured at fair value on a non-recurring basis as of the dates indicated: | |||||||||||||||||
Fair Value Measurement as of December 31, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
(In thousands) | |||||||||||||||||
Measured on a Non-Recurring Basis: | |||||||||||||||||
Non-PCI impaired loans | $ | 40,886 | $ | — | $ | 2,051 | $ | 38,835 | |||||||||
Non-covered other real estate owned | 9,062 | — | 7,084 | 1,978 | |||||||||||||
Covered other real estate owned | 1,815 | — | 1,700 | 115 | |||||||||||||
SBA loan servicing asset | 807 | — | — | 807 | |||||||||||||
| | | | | | | | | | | | | | ||||
$ | 52,570 | $ | — | $ | 10,835 | $ | 41,735 | ||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Fair Value Measurement as of December 31, 2012 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
(In thousands) | |||||||||||||||||
Measured on a Non-Recurring Basis: | |||||||||||||||||
Non-PCI impaired loans | $ | 102,207 | $ | — | $ | 4,975 | $ | 97,232 | |||||||||
Non-covered other real estate owned | 7,945 | — | — | 7,945 | |||||||||||||
Covered other real estate owned | 4,893 | — | 2,599 | 2,294 | |||||||||||||
SBA loan servicing asset | 1,000 | — | — | 1,000 | |||||||||||||
| | | | | | | | | | | | | | ||||
$ | 116,045 | $ | — | $ | 7,574 | $ | 108,471 | ||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
The following table presents gains and (losses) recognized on assets measured on a nonrecurring basis for the years indicated: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Gain (Loss) on Assets Measured on a Non-Recurring Basis: | |||||||||||||||||
Non-covered impaired loans | $ | (1,206 | ) | $ | (5,582 | ) | $ | (22,796 | ) | ||||||||
Non-covered other real estate owned | (726 | ) | (2,824 | ) | (4,381 | ) | |||||||||||
Covered other real estate owned | (319 | ) | (1,096 | ) | (9,275 | ) | |||||||||||
SBA loan servicing asset | 12 | 4 | 2 | ||||||||||||||
| | | | | | | | | | | |||||||
Total net loss | $ | (2,239 | ) | $ | (9,498 | ) | $ | (36,450 | ) | ||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2013: | |||||||||||||||||
Asset | Fair Value | Valuation | Unobservable | Range | Weighted | ||||||||||||
(in 000's) | Methodology | Inputs | Average | ||||||||||||||
Impaired loans(1) | $ | 37,672 | Discounted cash flow | Discount rates | 4.06% - 8.81% | 6.29 | % | ||||||||||
OREO | $ | 2,093 | Appraisals | Discount, including 8% for selling costs | 12% - 30% | 13 | % | ||||||||||
SBA loan servicing asset | $ | 807 | Discounted cash flow | Prepayment speeds | 3.40% - 16.34% | -2 | |||||||||||
Discount rates | 9.63% - 13.42% | -2 | |||||||||||||||
-1 | |||||||||||||||||
Excludes $1.2 million of impaired loans with balances of $250,000 or less. | |||||||||||||||||
-2 | |||||||||||||||||
Not readily available. | |||||||||||||||||
ASC Topic 825, "Financial Instruments," requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements. | |||||||||||||||||
The following tables present a summary of the carrying values and estimated fair values of certain financial instruments as of the dates indicated: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying or | |||||||||||||||||
Contract | |||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 96,424 | $ | 96,424 | $ | 96,424 | $ | — | $ | — | |||||||
Interest-earning deposits in financial institutions | 50,998 | 50,998 | 50,998 | — | — | ||||||||||||
Securities available-for-sale | 1,494,745 | 1,494,745 | 507 | 1,456,334 | 37,904 | ||||||||||||
Investment in FHLB stock | 27,939 | 27,939 | — | 27,939 | — | ||||||||||||
Loans and leases, net | 4,230,318 | 4,231,078 | — | 2,051 | 4,229,027 | ||||||||||||
SBA loan servicing asset | 807 | 807 | — | — | 807 | ||||||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | |||||||||||||||||
Demand, money market, interest checking, and savings deposits | 4,616,616 | 4,616,616 | — | 4,616,616 | — | ||||||||||||
Time deposits | 664,371 | 665,148 | — | 665,148 | — | ||||||||||||
Borrowings | 113,726 | 113,726 | 106,600 | 7,126 | — | ||||||||||||
Subordinated debentures | 132,645 | 132,498 | — | 132,498 | — | ||||||||||||
December 31, 2012 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying or | |||||||||||||||||
Contract | |||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 89,011 | $ | 89,011 | $ | 89,011 | $ | — | $ | — | |||||||
Interest-earning deposits in financial institutions | 75,393 | 75,393 | 75,393 | — | — | ||||||||||||
Securities available-for-sale | 1,355,385 | 1,355,385 | 8,985 | 1,301,716 | 44,684 | ||||||||||||
Investment in FHLB stock | 37,126 | 37,126 | — | 37,126 | — | ||||||||||||
Loans and leases, net | 3,498,329 | 3,551,674 | — | 4,975 | 3,546,699 | ||||||||||||
SBA loan servicing asset | 1,000 | 1,000 | — | — | 1,000 | ||||||||||||
Financial Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand, money market, interest checking, and savings deposits | 3,888,794 | 3,888,794 | — | 3,888,794 | — | ||||||||||||
Time deposits | 820,327 | 823,912 | — | 823,912 | — | ||||||||||||
Borrowings | 12,591 | 12,611 | — | 12,611 | — | ||||||||||||
Subordinated debentures | 108,250 | 108,186 | — | 108,186 | — | ||||||||||||
The following is a description of the valuation methodologies used to measure our assets recorded at fair value (under ASC Topic 820) and for estimating fair value for financial instruments not recorded at fair value (under ASC Topic 825): | |||||||||||||||||
Cash and due from banks. The carrying amount is assumed to be the fair value because of the liquidity of these instruments. | |||||||||||||||||
Interest-earning deposits in financial institutions. The carrying amount is assumed to be the fair value given the short-term nature of these deposits. | |||||||||||||||||
Securities available-for-sale. Securities available-for-sale are measured and carried at fair value on a recurring basis. Unrealized gains and losses on available-for-sale securities are reported as a component of accumulated other comprehensive income in the consolidated balance sheets. See Note 6, Investment Securities, for further information on unrealized gains and losses on securities available-for-sale. | |||||||||||||||||
Fair value for securities categorized as Level 1, which are publicly traded securities, are based on readily available quoted prices. In determining the fair value of the securities categorized as Level 2, we obtain a report from a nationally recognized broker-dealer detailing the fair value of each investment security we hold as of each reporting date. The broker-dealer uses observable market information to value our securities, with the primary source being a nationally recognized pricing service. We review the market prices provided by the broker-dealer for our securities for reasonableness based on our understanding of the marketplace and we consider any credit issues related to the securities. As we have not made any adjustments to the market quotes provided to us and they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. | |||||||||||||||||
Our covered private label CMOs are categorized as Level 3 due in part to the inactive market for such securities. There is a wide range of prices quoted for private label CMOs among independent third party pricing services and this range reflects the significant judgment being exercised over the assumptions and variables that determine the pricing of such securities. We consider this subjectivity to be a significant unobservable input and have concluded that the covered private label CMOs should be categorized as a Level 3 measured asset. Our fair value estimate was based on prices provided to us by a nationally recognized pricing service, which we also use to determine the fair value of the majority of our securities portfolio. We determined the reasonableness of the fair values by reviewing assumptions at the individual security level about prepayment, default expectations, estimated severity loss factors, and discount rates, all of which are not directly observable in the market. Significant changes in default expectations, severity loss factors, or discount rates, which occur all together or in isolation, would result in different fair value measurements. | |||||||||||||||||
FHLB stock. Investments in FHLB stock are recorded at cost and measured for impairment quarterly. Ownership of FHLB stock is restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB stock is equal to the carrying amount. | |||||||||||||||||
Non-PCI loans and leases. As Non-PCI loans and leases are not measured at fair value, the following discussion relates to estimating the fair value disclosures under ASC Topic 825. Fair values are estimated for portfolios of loans and leases with similar financial characteristics. Loans are segregated by type and further segmented into fixed and adjustable rate interest terms and by credit risk categories. The fair value estimates do not take into consideration the value of the loan portfolio in the event the loans are sold outside the parameters of normal operating activities. The fair value of performing fixed-rate loans is estimated by discounting scheduled cash flows through the estimated maturity using estimated market prepayment speeds. The fair value of equipment leases is estimated by discounting scheduled lease and expected lease residual cash flows over their remaining term. The estimated market discount rates used for performing fixed-rate loans and equipment leases are the Company's current offering rates for comparable instruments with similar terms. The fair value of performing adjustable-rate loans is estimated by discounting scheduled cash flows through the next repricing date. As these loans reprice frequently at market rates and the credit risk is not considered to be greater than normal, the market value is typically close to the carrying amount of these loans. These methods and assumptions are not based on the exit price concept of fair value. | |||||||||||||||||
Non-PCI impaired loans. Nonaccrual loans and performing restructured loans are considered impaired for reporting purposes and are measured and recorded at fair value on a non-recurring basis. Non-PCI nonaccrual loans with an unpaid principal balance over $250,000 and all performing restructured loans are reviewed individually for the amount of impairment, if any. Non-PCI nonaccrual loans with an unpaid principal balance of $250,000 or less are evaluated for impairment collectively. | |||||||||||||||||
To the extent a loan is collateral dependent, we measure such impaired loan based on the estimated fair value of the underlying collateral. The fair value of each loan's collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral; such valuation inputs result in a nonrecurring fair value measurement that is categorized as a Level 2 measurement. The Level 2 measurement is based on appraisals obtained within the last 12 months and for which a charge-off was recognized or a change in the specific valuation allowance was made during the year ended December 31, 2013. | |||||||||||||||||
When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. The impaired loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, including an SBA government guarantee, cash flows discounted at the effective loan rate, and management's judgment. | |||||||||||||||||
The Non-PCI impaired loan balances shown above represent those nonaccrual and restructured loans for which impairment was recognized during 2013 and 2012. The amounts shown as net losses include the impairment recognized during the years ended December 31, 2013, 2012, and 2011, for the loan balances shown. Of the $46.8 million of nonaccrual loans at December 31, 2013, $2.0 million were written down to their collateral fair values through charge-offs during 2013. | |||||||||||||||||
Other real estate owned. The fair value of foreclosed real estate, both non-covered and covered, is generally based on estimated market prices from independently prepared current appraisals or negotiated sales prices with potential buyers, less estimated costs to sell; such valuation inputs result in a fair value measurement that is categorized as a Level 2 measurement on a nonrecurring basis. As a matter of policy, appraisals are required annually and may be updated more frequently as circumstances require in the opinion of management. The Level 2 measurement for OREO is based on appraisals obtained within the last 12 months and for which a write-down was recognized in 2013 and 2012. | |||||||||||||||||
When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. The OREO losses disclosed are write-downs based on either a recent appraisal obtained after foreclosure or an accepted purchase offer by an independent third party received after foreclosure. | |||||||||||||||||
SBA servicing asset. In accordance with ASC Topic 860, "Transfers and Servicing," the SBA servicing asset, included in other assets in the consolidated balance sheets, is carried at its implied fair value. The fair value of the servicing asset is estimated by discounting future cash flows using market-based discount rates and prepayment speeds. The discount rate is based on the current US Treasury yield curve, as published by the Department of the Treasury, plus a spread for the marketplace risk associated with these assets. We utilize estimated prepayment vectors using SBA prepayment information provided by Bloomberg for pools of similar assets to determine the timing of the cash flows. These nonrecurring valuation inputs are considered to be Level 3 inputs. | |||||||||||||||||
Deposits. Deposits are carried at historical cost. The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, interest checking, money market, and savings accounts, is equal to the amount payable on demand as of the balance sheet date and considered Level 2. The fair value of time deposits is based on the discounted value of contractual cash flows and considered Level 2. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. No value has been separately assigned to the Company's long-term relationships with its deposit customers, such as a core deposit intangible. | |||||||||||||||||
Borrowings. Borrowings include overnight FHLB advances and other fixed-rate term borrowings. Borrowings are carried at amortized cost. The fair value of overnight FHLB advances is equal to the carrying value and considered Level 1. The fair value of fixed-rate borrowings is calculated by discounting scheduled cash flows through the estimated maturity or call dates, if applicable, using estimated market discount rates that reflect current rates offered for borrowings with similar remaining maturities and characteristics and are considered Level 2. | |||||||||||||||||
Subordinated debentures. Subordinated debentures are carried at amortized cost. The fair value of subordinated debentures with variable rates is determined using a market discount rate on the expected cash flows. | |||||||||||||||||
Commitments to extend credit. The majority of our commitments to extend credit carry current market interest rates if converted to loans. Because these commitments are generally unassignable by either the borrower or us, they only have value to the borrower and us. The estimated fair value approximates the recorded deferred fee amounts and is excluded from the table above because it is not material. | |||||||||||||||||
Limitations | |||||||||||||||||
Fair value estimates are made at a specific point in time and are based on relevant market information and information about the financial instrument. These estimates do not reflect income taxes or any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a portion of the Company's financial instruments, fair value estimates are based on what management believes to be conservative judgments regarding expected future cash flows, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimated fair values 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 estimates. Since the fair values have been estimated as of December 31, 2013 and 2012, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different. | |||||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE 15—INCOME TAXES | |||||||||||
The following table presents the components of income tax expense for the years indicated: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Current Income Tax (Expense) Benefit: | |||||||||||
Federal | $ | (29,591 | ) | $ | (24,177 | ) | $ | (15,129 | ) | ||
State | (7,667 | ) | (1,825 | ) | (9,562 | ) | |||||
| | | | | | | | | | | |
Total current income tax expense | (37,258 | ) | (26,002 | ) | (24,691 | ) | |||||
| | | | | | | | | | | |
Deferred Income Tax (Expense) Benefit: | |||||||||||
Federal | 9,099 | (2,550 | ) | (11,726 | ) | ||||||
State | (1,586 | ) | (8,143 | ) | (383 | ) | |||||
| | | | | | | | | | | |
Total deferred income tax benefit (expense) | 7,513 | (10,693 | ) | (12,109 | ) | ||||||
| | | | | | | | | | | |
Total income tax expense | $ | (29,745 | ) | $ | (36,695 | ) | $ | (36,800 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
The following table presents a reconciliation of the recorded income tax expense to the amount of taxes computed by applying the applicable federal statutory income tax rate of 35% to earnings or loss before income taxes: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Computed expected income tax expense at federal statutory rate | $ | (26,201 | ) | $ | (32,724 | ) | $ | (30,626 | ) | ||
State tax expense, net of federal tax benefit | (6,014 | ) | (6,479 | ) | (6,464 | ) | |||||
Tax-exempt interest benefit | 3,979 | 1,847 | 406 | ||||||||
Increase in cash surrender value of life insurance | 407 | 442 | 504 | ||||||||
Tax credits | 2,480 | 1,313 | 556 | ||||||||
Nondeductible employee compensation | (4,730 | ) | (322 | ) | (572 | ) | |||||
Nondeductible acquisition-related expense | (1,196 | ) | (532 | ) | — | ||||||
Acquisition-related securities gain | 1,828 | — | — | ||||||||
Other, net | (298 | ) | (240 | ) | (604 | ) | |||||
| | | | | | | | | | | |
Recorded income tax expense | $ | (29,745 | ) | $ | (36,695 | ) | $ | (36,800 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
The Company had net income taxes receivable of $39.6 million and $30.0 million at December 31, 2013 and 2012, respectively, included in other assets on its consolidated balance sheets. | |||||||||||
The Company had available at December 31, 2013, approximately $34,000 of unused federal net operating loss carryforwards that may be applied against future taxable income through 2022. The Company had available at December 31, 2013, approximately $658,000 of unused state net operating loss carryforwards that may be applied against future taxable income through 2033. Utilization of the net operating loss and other carryforwards are subject to annual limitations set forth in Section 382 of the Internal Revenue Code. | |||||||||||
NOTE 15—INCOME TAXES (Continued) | |||||||||||
The following table presents the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of the dates indicated: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Deferred Tax Assets: | |||||||||||
Book allowance for loan losses in excess of tax specific charge-offs | $ | 45,840 | $ | 31,602 | |||||||
Interest on nonaccrual loans | 444 | 473 | |||||||||
Deferred compensation | 4,541 | 3,727 | |||||||||
Premises and equipment, principally due to differences in depreciation | 3,643 | 2,457 | |||||||||
OREO valuation allowance | 9,784 | 7,398 | |||||||||
Assets acquired in FDIC-assisted acquisition | 16,375 | 19,170 | |||||||||
State tax benefit | 2,368 | 247 | |||||||||
Accrued liabilities | 16,629 | 10,126 | |||||||||
Other | 7,846 | 10,934 | |||||||||
Goodwill | 6,595 | 3,846 | |||||||||
Deferred loan fees and costs | 378 | — | |||||||||
Unrealized loss on securities available-for-sale | 2,424 | — | |||||||||
| | | | | | | | ||||
Gross deferred tax assets | 116,867 | 89,980 | |||||||||
| | | | | | | | ||||
Deferred Tax Liabilities: | |||||||||||
Core deposit and customer relationship intangibles | 6,022 | 5,004 | |||||||||
Deferred loan fees and costs | — | 296 | |||||||||
Unrealized gain on securities available-for-sale | — | 23,824 | |||||||||
FHLB stock and dividends | 7,123 | 7,557 | |||||||||
Unrealized income from FDIC-assisted acquisition | 24,086 | 23,614 | |||||||||
| | | | | | | | ||||
Gross deferred tax liabilities | 37,231 | 60,295 | |||||||||
| | | | | | | | ||||
Total net deferred tax asset | $ | 79,636 | $ | 29,685 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Based upon our taxpaying history and estimates of taxable income over the years in which the items giving rise to the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences. | |||||||||||
Our evaluation of tax positions was performed for those tax years that remain open to audit. As of December 31, 2013, all the federal returns filed since 2008 and state returns filed since 2008 are subject to adjustment upon audit. | |||||||||||
We had no unrecognized net tax benefit positions at December 31, 2013, 2012 and 2011, respectively. While the amount of unrecognized tax benefits may change in the next twelve months, the Company does not expect this change to have a material impact on the results of operations or the financial position of the Company. We may from time to time be assessed interest or penalties by taxing authorities, although any such assessments historically have been minimal and immaterial to our financial results. In the event we are assessed for interest and/or penalties, such amounts will be classified in the financial statements as income tax expense. | |||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
EARNINGS PER SHARE | ' | ||||||||||
NOTE 16—EARNINGS PER SHARE | |||||||||||
The following table presents a summary of the calculation of basic and diluted net earnings per share for the years indicated: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, | |||||||||||
except per share data) | |||||||||||
Basic Earnings Per Share: | |||||||||||
Net earnings from continuing operations | $ | 45,477 | $ | 56,801 | $ | 50,704 | |||||
Less: earnings allocated to unvested restricted stock(1) | (1,096 | ) | (1,845 | ) | (2,072 | ) | |||||
| | | | | | | | | | | |
Net earnings from continuing operations allocated to common shares | 44,381 | 54,956 | 48,632 | ||||||||
Net loss from discontinued operations allocated to common shares | (348 | ) | — | — | |||||||
| | | | | | | | | | | |
Net earnings allocated to common shares | $ | 44,033 | $ | 54,956 | $ | 48,632 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Weighted-average basic shares and unvested restricted stock outstanding | 42,506 | 37,370 | 37,142 | ||||||||
Less: weighted-average unvested restricted stock outstanding | (1,683 | ) | (1,685 | ) | (1,651 | ) | |||||
| | | | | | | | | | | |
Weighted-average basic shares outstanding | 40,823 | 35,685 | 35,491 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic earnings per share: | |||||||||||
Net earnings from continuing operations | $ | 1.09 | $ | 1.54 | $ | 1.37 | |||||
Net loss from discontinued operations | (0.01 | ) | — | — | |||||||
| | | | | | | | | | | |
Net earnings | $ | 1.08 | $ | 1.54 | $ | 1.37 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted Earnings Per Share: | |||||||||||
Net earnings from continuing operations allocated to common shares | $ | 44,381 | $ | 54,956 | $ | 48,632 | |||||
Net loss from discontinued operations allocated to common shares | (348 | ) | — | — | |||||||
| | | | | | | | | | | |
Net earnings allocated to common shares | $ | 44,033 | $ | 54,956 | $ | 48,632 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Weighted-average basic shares outstanding | 40,823 | 35,685 | 35,491 | ||||||||
| | | | | | | | | | | |
Diluted earnings per share: | |||||||||||
Net earnings from continuing operations | $ | 1.09 | $ | 1.54 | $ | 1.37 | |||||
Net loss from discontinued operations | (0.01 | ) | — | — | |||||||
| | | | | | | | | | | |
Net earnings | $ | 1.08 | $ | 1.54 | $ | 1.37 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any. | |||||||||||
STOCK_COMPENSATION_PLANS
STOCK COMPENSATION PLANS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
STOCK COMPENSATION PLANS | ' | |||||||||||||
STOCK COMPENSATION PLANS | ' | |||||||||||||
NOTE 17—STOCK COMPENSATION PLANS | ||||||||||||||
The Company's 2003 Stock Incentive Plan, or the 2003 Plan, permits stock-based compensation awards to officers, directors, key employees and consultants. As of December 31, 2013, the 2003 Plan authorized grants of stock-based compensation instruments to purchase or issue up to 6,500,000 shares of authorized but unissued Company common stock, subject to adjustments provided by the 2003 Plan. In May 2013, the Board of Directors approved the equity award of 12,742 common shares to non-employee directors of the Company. Such shares were granted outright and vested immediately with a charge to other noninterest expense of $361,000 at that time. As of December 31, 2013, there were 1,433,647 shares available for grant under the 2003 Plan. At the Special Meeting of Stockholders held on January 13, 2014, our stockholders approved an amendment to the 2003 Plan to increase the aggregate number of shares of Company common stock authorized for grant from 6.5 million shares to 9.0 million shares. As a result of this action, 3,927,147 shares were available for grant as of February 28, 2014. | ||||||||||||||
Accelerated Vesting of Restricted Stock | ||||||||||||||
In December 2013, the Company accelerated the vesting of certain restricted stock awards that resulted in a pre-tax charge of $12.4 million ($12.2 million after tax). This action was taken by the Company in order to eliminate an additional $21.0 million of compensation and tax expense related to change in control payments that the Company would have otherwise incurred upon consummation of the CapitalSource merger. Such eliminated expenses relate to tax gross-up payments and the value of lost tax deductions, in each case due to the impact of Sections 280G and 4999 of the Internal Revenue Code as they apply to change in control payments that would have become payable to certain PacWest employees in conjunction with the CapitalSource merger. The restricted stock awards that were vested on an accelerated basis in 2013 would have otherwise vested upon consummation of the CapitalSource merger, and the $12.2 million after-tax charge to earnings that we recorded in December 2013 would have been incurred at that time. | ||||||||||||||
Restricted Stock | ||||||||||||||
The following table presents a summary of restricted stock transactions for the years indicated: | ||||||||||||||
Number of | Weighted | |||||||||||||
Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
(Per Share) | ||||||||||||||
Unvested restricted stock, December 31, 2010 | 1,230,582 | $ | 35.86 | |||||||||||
Granted | 692,900 | 20.5 | ||||||||||||
Shares issued by the Company upon vesting | (203,174 | ) | 30.13 | |||||||||||
Forfeited | (44,578 | ) | 23.56 | |||||||||||
| | | | | | | | |||||||
Unvested restricted stock, December 31, 2011 | 1,675,730 | 30.53 | ||||||||||||
Granted | 226,400 | 23.77 | ||||||||||||
Shares issued by the Company upon vesting | (195,871 | ) | 21.69 | |||||||||||
Forfeited | (7,978 | ) | 22.31 | |||||||||||
| | | | | | | | |||||||
Unvested restricted stock, December 31, 2012 | 1,698,281 | 30.68 | ||||||||||||
Granted | 673,900 | 29.06 | ||||||||||||
Shares issued by the Company upon vesting | (819,461 | ) | 24.84 | |||||||||||
Forfeited | (336,196 | ) | 48.92 | |||||||||||
| | | | | | | | |||||||
Unvested restricted stock, December 31, 2013 | 1,216,524 | $ | 28.69 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
At December 31, 2013, there were outstanding 609,074 shares of unvested time-based restricted common stock and 607,450 shares of unvested performance-based restricted common stock. The awarded shares of time-based restricted common stock vest over a service period of three to five years from the date of the grant. Of the 607,450 outstanding shares of unvested performance-based restricted stock, 505,944 shares will vest in full on the date the Compensation, Nominating and Governance, or CNG, Committee of the Board of Directors, as Administrator of the 2003 Plan, determines that the Company has achieved certain financial goals established by the CNG Committee as set forth in the grant documents. The remaining 101,506 shares of unvested performance-based restricted stock vest over a period of three years once the performance targets are met. Both time-based and performance-based restricted common stock vest immediately upon a change in control of the Company as defined in the 2003 Plan or upon death of the employee. The vesting date fair values of restricted stock awards that vested during 2013, 2012, and 2011 were $30.9 million, $4.5 million, and $3.7 million, respectively. | ||||||||||||||
Compensation expense related to time-based restricted stock awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. Restricted stock amortization totaled $8.5 million (excluding accelerated vesting of restricted stock of $12.4 million), $5.7 million, and $7.6 million for the years ended December 31, 2013, 2012, and 2011, respectively. Such amounts are included in compensation expense on the accompanying consolidated statements of earnings. The income tax benefit recognized in the consolidated statements of earnings related to this expense was $3.4 million, $2.2 million, and $3.2 million for 2013, 2012, and 2011, respectively. As of December 31, 2013, total unrecognized compensation cost related to unvested time-based restricted stock was $9.2 million. This cost would be recognized over a weighted average period of 1.5 years if the CapitalSource merger is not consummated. | ||||||||||||||
We are currently not recognizing any compensation expense for 505,944 of the 607,450 shares of performance-based restricted stock as management has concluded that it is improbable that the respective financial targets related to these outstanding stock awards will be met. If and when the attainment of such financial targets is deemed probable in future periods, a catch-up adjustment will be recorded and amortization of such performance-based restricted stock will begin again. The total amount of unrecognized compensation expense related to the 505,944 shares of performance-based restricted stock for which amortization is not being recognized totaled $17.5 million at December 31, 2013. We are recognizing amortization and compensation expense for the remaining 101,506 shares of performance-based restricted stock. The total amount of unrecognized compensation expense related to these shares was $2.4 million at December 31, 2013. | ||||||||||||||
As noted above, both time-based and performance-based restricted stock vest upon a change in control of the Company. The closing of the CapitalSource merger will trigger restricted stock vesting under the change in control provisions within the 2003 Plan. The remaining unamortized expense will be recognized at that time for those awards where compensation expense is currently being recognized. The expense to be recognized for those performance-based awards where we are not currently recognizing any compensation expense will be the fair value of those shares on the merger closing date. | ||||||||||||||
The following table summarizes information about outstanding time-based and performance-based restricted stock awards as of the date indicated: | ||||||||||||||
December 31, 2013 | ||||||||||||||
Number | Weighted | Weighted | Weighted | |||||||||||
of Shares | Average | Average | Average | |||||||||||
Outstanding | Grant Date | Fair Value(1) | Remaining | |||||||||||
Fair Value | (In thousands) | Contractual | ||||||||||||
(Per Share) | Life (Years) | |||||||||||||
Time-based restricted stock granted in: | ||||||||||||||
2010 | 56,884 | $ | 19.79 | $ | 2,402 | 0.2 | ||||||||
2011 | 190,716 | $ | 20.3 | 8,052 | 1.4 | |||||||||
2012 | 213,050 | $ | 23.74 | 8,995 | 1.3 | |||||||||
2013 | 148,424 | $ | 29.87 | 6,266 | 2.3 | |||||||||
| | | | | | | | | | | | | | |
Outstanding time-based restricted stock awards | 609,074 | 25,715 | 1.5 | |||||||||||
| | | | | | | | | | | | | | |
Performance-based restricted stock granted in: | ||||||||||||||
2007 | 205,000 | $ | 54.92 | 8,655 | 3.1 | |||||||||
2011 | 291,759 | $ | 20.46 | 12,318 | 2.2 | |||||||||
2013 | 110,691 | $ | 28.74 | 4,673 | 3.5 | |||||||||
| | | | | | | | | | | | | | |
Outstanding performance-based restricted stock awards | 607,450 | 25,646 | 2.8 | |||||||||||
| | | | | | | | | | | | | | |
Total outstanding restricted stock awards | 1,216,524 | $ | 51,361 | 2.1 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
Determined using the $42.22 closing price of PacWest common stock on December 31, 2013. | ||||||||||||||
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
BENEFIT PLANS | ' |
BENEFIT PLANS | ' |
NOTE 18—BENEFIT PLANS | |
401(K) Plans | |
The Company sponsors a defined contribution plan for the benefit of its employees. Participants are eligible to participate immediately as long as they are scheduled to work a minimum of 1,000 hours and are at least 21 years of age. Eligible participants may contribute up to 60% of their annual compensation, not to exceed the dollar limit imposed by the Internal Revenue Code. Employer contributions are determined annually by the Board of Directors in accordance with plan requirements and applicable tax code. | |
Expense related to 401(k) matching contributions was $1.3 million, $1.0 million, and $433,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
STOCKHOLDERS' EQUITY | ' | |||||
STOCKHOLDERS' EQUITY | ' | |||||
NOTE 19—STOCKHOLDERS' EQUITY | ||||||
Treasury Shares | ||||||
As a Delaware corporation, the Company records treasury shares for shares surrendered to the Company resulting from statutory payroll tax obligations arising from the vesting of restricted stock. During 2013, the Company purchased 351,640 treasury shares at a weighted average price of $38.50 per share. During 2012, the Company purchased 63,681 treasury shares at a weighted average price of $23.17 per share. During 2011, the Company purchased 80,173 treasury shares at a weighted average price of $18.27 per share. | ||||||
Accumulated Other Comprehensive Income | ||||||
The following table provides information about reclassification adjustments from accumulated other comprehensive income ("AOCI") for the year indicated: | ||||||
Year Ended December 31, 2013 | ||||||
AOCI Component: | Amount | Affected Line Item in the | ||||
Reclassified | Statement Where | |||||
from AOCI | Net Income is Presented | |||||
(In thousands) | ||||||
Unrealized gains on available-for-sale securities: | ||||||
$ | 137 | Gain on sale of securities | ||||
5,222 | Acquisition-related securities gain(1) | |||||
| | | | | | |
5,359 | Total before tax | |||||
(58 | ) | Income tax expense | ||||
| | | | | | |
Total reclassification for the year | $ | 5,301 | Net of tax | |||
| | | | | | |
| | | | | | |
-1 | ||||||
Non-taxable gain on equity interest in FCAL common stock at its fair value as of the FCAL acquisition date. | ||||||
DIVIDEND_AVAILABILITY_AND_REGU
DIVIDEND AVAILABILITY AND REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
DIVIDEND AVAILABILITY AND REGULATORY MATTERS | ' | ||||||||||||||||
DIVIDEND AVAILABILITY AND REGULATORY MATTERS | ' | ||||||||||||||||
NOTE 20—DIVIDEND AVAILABILITY AND REGULATORY MATTERS | |||||||||||||||||
Holders of Company common stock are entitled to receive dividends declared by the Board of Directors out of funds legally available under state law governing the Company and certain federal laws and regulations governing the banking and financial services business. Our ability to pay dividends to our stockholders is subject to the restrictions set forth in Delaware General Corporation Law and certain covenants contained in the indentures governing trust preferred securities issued by us or entities that we have acquired. Notification to the Board of Governors of the Federal Reserve System ("FRB") is also required prior to our declaring and paying dividends during any period in which our quarterly and/or cumulative twelve-month net earnings are insufficient to fund the dividend amount, among other requirements. Should the FRB object to payment of dividends, we would not be able to make the payment until approval is received or we no longer need to provide notice under applicable regulations. | |||||||||||||||||
It is possible, depending upon the financial condition of the Bank, and other factors, that the FRB, the FDIC or the California Department of Business Oversight, Division of Financial Institutions ("DBO"), could assert that payment of dividends or other payments is an unsafe or unsound practice. Pacific Western is subject to restrictions under certain federal and state laws and regulations governing banks which limit its ability to transfer funds to the holding company through intercompany loans, advances or cash dividends. Dividends paid by state banks such as Pacific Western are regulated by the DBO under its general supervisory authority as it relates to a bank's capital requirements. A state bank may declare a dividend without the approval of the DBO as long as the total dividends declared in a calendar year do not exceed either the retained earnings or the total of net earnings for three previous fiscal years less any dividend paid during such period. During 2013, PacWest received $48.0 million in dividends from the Bank. For the foreseeable future, dividends from the Bank to PacWest will require DBO approval. | |||||||||||||||||
PacWest, as a bank holding company, is subject to regulation by the FRB under the Bank Holding Company Act of 1956, as amended. The Federal Deposit Insurance Corporation Improvement Act of 1991 required that the federal regulatory agencies adopt regulations defining capital tiers for banks: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company's and the Bank's assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier I capital to risk-weighted assets, and of Tier I capital to average assets ("leverage ratio"). Tier 1 capital includes common stockholders' equity and trust preferred securities, less goodwill and certain other deductions (including a portion of servicing assets and the after-tax unrealized net gains and losses on securities available-for-sale). Total risk-based capital includes Tier 1 capital and other items such as subordinated debt and the allowance for credit losses. Both measures are stated as a percentage of risk-weighted assets, which are measured based on their perceived credit risk and include certain off-balance sheet exposures, such as unfunded loan commitments and letters of credit. The Company is also subject to a leverage ratio requirement, which is defined as Tier 1 capital as a percentage of average assets, adjusted for goodwill and other non-qualifying intangible assets and other assets. | |||||||||||||||||
Bank holding companies considered to be "adequately capitalized" are required to maintain a minimum total risk-based capital ratio of 8%, a minimum Tier 1 risk-based capital ratio of 4.0%, and a minimum leverage ratio of 4.0%. Bank holding companies considered to be "well capitalized" must maintain a minimum total risk-based capital ratio of 10.0%, a minimum Tier 1 risk-based capital ratio of 6.0%, and a minimum leverage ratio of 5%. As of December 31, 2013, the most recent notification date to the regulatory agencies, the Company and the Bank are each "well capitalized" under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company's or any of the Bank's categories. | |||||||||||||||||
Management believes, as of December 31, 2013, that we have met all capital adequacy requirements to which we are subject. | |||||||||||||||||
Regulatory capital requirements limit the amount of deferred tax assets that may be included when determining the amount of regulatory capital. Deferred tax asset amounts in excess of the calculated limit are deducted from regulatory capital. At December 31, 2013, such amount was $3.8 million for the Company and $3.3 million for the Bank. No assurance can be given that the regulatory capital deferred tax asset limitation will not increase in the future. | |||||||||||||||||
The following table presents actual capital amounts and ratios for the Company and the Bank as of the dates indicated: | |||||||||||||||||
Well Capitalized | |||||||||||||||||
Actual | Minimum | ||||||||||||||||
Requirement | Excess | ||||||||||||||||
Capital | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013: | |||||||||||||||||
Tier I capital (to average assets): | |||||||||||||||||
PacWest Bancorp Consolidated | $ | 718,800 | 11.22 | % | $ | 320,405 | 5 | % | $ | 398,395 | |||||||
Pacific Western Bank | 690,440 | 10.79 | 319,999 | 5 | 370,441 | ||||||||||||
Tier I capital (to risk-weighted assets): | |||||||||||||||||
PacWest Bancorp Consolidated | 718,800 | 15.12 | 285,163 | 6 | 433,637 | ||||||||||||
Pacific Western Bank | 690,400 | 14.54 | 284,825 | 6 | 405,575 | ||||||||||||
Total capital (to risk-weighted assets): | |||||||||||||||||
PacWest Bancorp Consolidated | 778,582 | 16.38 | 475,271 | 10 | 303,311 | ||||||||||||
Pacific Western Bank | 750,152 | 15.8 | 474,708 | 10 | 275,444 | ||||||||||||
December 31, 2012: | |||||||||||||||||
Tier I capital (to average assets): | |||||||||||||||||
PacWest Bancorp Consolidated | $ | 570,082 | 10.53 | % | $ | 270,694 | 5 | % | $ | 299,388 | |||||||
Pacific Western Bank | 528,151 | 9.78 | 269,901 | 5 | 258,250 | ||||||||||||
Tier I capital (to risk-weighted assets): | |||||||||||||||||
PacWest Bancorp Consolidated | 570,082 | 15.17 | 225,541 | 6 | 344,541 | ||||||||||||
Pacific Western Bank | 528,151 | 14.1 | 224,778 | 6 | 303,373 | ||||||||||||
Total capital (to risk-weighted assets): | |||||||||||||||||
PacWest Bancorp Consolidated | 617,702 | 16.43 | 375,901 | 10 | 241,801 | ||||||||||||
Pacific Western Bank | 575,614 | 15.36 | 374,630 | 10 | 200,984 | ||||||||||||
The Company issued subordinated debentures to trusts that were established by us or entities that we have acquired, which, in turn, issued trust preferred securities, which totaled $131.0 million at December 31, 2013. The Company includes in Tier 1 capital an amount of trust preferred securities equal to no more than 25% of the sum of all core capital elements, which is generally defined as shareholders' equity less goodwill, net of any related deferred income tax liability. At December 31, 2013, the amount of trust preferred securities included in Tier I capital was $131.0 million. Our existing trust preferred securities are currently grandfathered as Tier 1 capital under the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, under new capital rules approved in July 2013 by the FRB and FDIC, if the Company completes the CapitalSource merger or any subsequent acquisition such that, upon completion of such transaction, the Company exceeds $15 billion in consolidated total assets, beginning in 2015, only 25% of the Company's $131.0 million of trust preferred securities currently outstanding will be included in Tier 1 capital, and in 2016, none of the Company's trust preferred securities will be included in Tier 1 capital. Further, under such rules, trust preferred securities no longer included in the Company's Tier 1 capital may be included as a component of Tier 2 capital on a permanent basis without phase-out. If trust preferred securities are excluded from regulatory capital at December 31, 2013, we remain "well capitalized." | |||||||||||||||||
Interest payments made by the Company on subordinated debentures are considered dividend payments under the FRB regulations and subject to the same notification requirements for declaring and paying dividends on common stock. | |||||||||||||||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||
NOTE 21—BUSINESS SEGMENTS | ||||||||||||||
The Company's reportable segments consist of "Banking," "Asset Financing," and "Other." At December 31, 2013, the Other segment consisted of the PacWest Bancorp holding company and other elimination and reconciliation entries. | ||||||||||||||
The Bank's Asset Financing segment includes the operations of the divisions and subsidiaries that provide asset-based commercial loans and equipment leases. The asset-based lending products are offered primarily through three business units: (1) First Community Financial ("FCF"), a division of the Bank, based in Phoenix, Arizona; (2) BFI Business Finance ("BFI"), a wholly-owned subsidiary of the Bank, based in San Jose, California; and (3) Celtic Capital Corporation ("Celtic"), a wholly-owned subsidiary of the Bank based in Santa Monica, California. The Bank's leasing products are offered through Pacific Western Equipment Finance ("EQF"), a division of the Bank based in Midvale, Utah. | ||||||||||||||
The accounting policies of the reported segments are the same as those of the Company described in Note 1, "Nature of Operations and Summary of Significant Accounting Policies." Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Asset Financing segment based upon the Bank's total cost of interest-bearing liabilities. The provision for credit losses is allocated based on actual charge-offs for the period as well as assigning a minimum reserve requirement to the Asset Financing segment. Noninterest income and noninterest expense directly attributable to a segment are assigned to it. | ||||||||||||||
The following tables present information regarding our business segments as of and for the years indicated: | ||||||||||||||
December 31, 2013 | ||||||||||||||
Balance Sheet Data | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Loans and leases, net of unearned income | $ | 3,837,475 | $ | 474,877 | $ | — | $ | 4,312,352 | ||||||
Allowance for loan and lease losses | (75,498 | ) | (6,536 | ) | — | (82,034 | ) | |||||||
| | | | | | | | | | | | | | |
Total loans and leases, net | $ | 3,761,977 | $ | 468,341 | $ | — | $ | 4,230,318 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Goodwill(1) | $ | 183,065 | $ | 25,678 | $ | — | $ | 208,743 | ||||||
Core deposit and customer relationship intangibles, net | 15,331 | 1,917 | — | 17,248 | ||||||||||
Total assets | 6,004,067 | 519,675 | 9,621 | 6,533,363 | ||||||||||
Total deposits(2) | 5,302,822 | — | (21,835 | ) | 5,280,987 | |||||||||
-1 | ||||||||||||||
The increase in the Banking segment's goodwill during 2013 was due primarily to $129.1 million from the FCAL acquisition. | ||||||||||||||
-2 | ||||||||||||||
The negative balance for total deposits in the "Other" segment represents the elimination of holding company cash held in deposit accounts at the Bank. | ||||||||||||||
December 31, 2012 | ||||||||||||||
Balance Sheet Data | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Loans and leases, net of unearned income | $ | 3,175,165 | $ | 415,132 | $ | — | $ | 3,590,297 | ||||||
Allowance for loan and lease losses | (87,538 | ) | (4,430 | ) | — | (91,968 | ) | |||||||
| | | | | | | | | | | | | | |
Total loans and leases, net | $ | 3,087,627 | $ | 410,702 | $ | — | $ | 3,498,329 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Goodwill | $ | 54,188 | $ | 25,678 | $ | — | $ | 79,866 | ||||||
Core deposit and customer relationship intangibles, net | 12,151 | 2,572 | — | 14,723 | ||||||||||
Total assets | 4,991,927 | 451,557 | 20,174 | 5,463,658 | ||||||||||
Total deposits(1) | 4,737,593 | — | (28,472 | ) | 4,709,121 | |||||||||
-1 | ||||||||||||||
The negative balance for total deposits in the "Other" segment represents the elimination of holding company cash held in deposit accounts at the Bank. | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Results of Operations | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Interest income | $ | 261,492 | $ | 48,422 | $ | — | $ | 309,914 | ||||||
Intersegment interest income (expense) | 1,525 | (1,525 | ) | — | — | |||||||||
Other interest expense | (7,873 | ) | (532 | ) | (3,796 | ) | (12,201 | ) | ||||||
| | | | | | | | | | | | | | |
Net interest income | 255,144 | 46,365 | (3,796 | ) | 297,713 | |||||||||
| | | | | | | | | | | | | | |
Negative provision (provision) for credit losses | 8,079 | (3,869 | ) | — | 4,210 | |||||||||
| | | | | | | | | | | | | | |
FDIC loss sharing expense | (26,172 | ) | — | — | (26,172 | ) | ||||||||
Acquisition-related securities gain | — | — | 5,222 | 5,222 | ||||||||||
Other noninterest income | 21,532 | 3,558 | 104 | 25,194 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | (4,640 | ) | 3,558 | 5,326 | 4,244 | |||||||||
| | | | | | | | | | | | | | |
Accelerated vesting of restricted stock | (12,420 | ) | — | — | (12,420 | ) | ||||||||
OREO income (expense) | 1,503 | — | — | 1,503 | ||||||||||
Intangible asset amortization | (4,748 | ) | (654 | ) | — | (5,402 | ) | |||||||
Acquisition and integration costs | (28,132 | ) | — | (260 | ) | (28,392 | ) | |||||||
Other noninterest expense | (156,600 | ) | (23,575 | ) | (5,801 | ) | (185,976 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (200,397 | ) | (24,229 | ) | (6,061 | ) | (230,687 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings (loss) from continuing operations before income taxes | 58,186 | 21,825 | (4,531 | ) | 75,480 | |||||||||
Income tax (expense) benefit | (24,940 | ) | (9,101 | ) | 4,038 | (30,003 | ) | |||||||
| | | | | | | | | | | | | | |
Net earnings (loss) from continuing operations | 33,246 | 12,724 | (493 | ) | 45,477 | |||||||||
| | | | | | | | | | | | | | |
Loss from discontinued operations before income taxes | (620 | ) | — | — | (620 | ) | ||||||||
Income tax benefit | 258 | — | — | 258 | ||||||||||
| | | | | | | | | | | | | | |
Net loss from discontinued operations | (362 | ) | — | — | (362 | ) | ||||||||
| | | | | | | | | | | | | | |
Net earnings (loss) | $ | 32,884 | $ | 12,724 | $ | (493 | ) | $ | 45,115 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Year Ended December 31, 2012 | ||||||||||||||
Results of Operations | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Interest income | $ | 251,720 | $ | 44,395 | $ | — | $ | 296,115 | ||||||
Intersegment interest income (expense) | 2,055 | (2,055 | ) | — | — | |||||||||
Other interest expense | (15,043 | ) | (884 | ) | (3,721 | ) | (19,648 | ) | ||||||
| | | | | | | | | | | | | | |
Net interest income | 238,732 | 41,456 | (3,721 | ) | 276,467 | |||||||||
| | | | | | | | | | | | | | |
Negative provision (provision) for credit losses | 14,585 | (1,766 | ) | — | 12,819 | |||||||||
| | | | | | | | | | | | | | |
FDIC loss sharing expense | (10,070 | ) | — | — | (10,070 | ) | ||||||||
Other noninterest income | 21,811 | 4,017 | 114 | 25,942 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | 11,741 | 4,017 | 114 | 15,872 | ||||||||||
| | | | | | | | | | | | | | |
OREO expense | (10,931 | ) | — | — | (10,931 | ) | ||||||||
Intangible asset amortization | (5,898 | ) | (428 | ) | — | (6,326 | ) | |||||||
Acquisition and integration costs | (4,089 | ) | — | — | (4,089 | ) | ||||||||
Debt termination expense | (24,195 | ) | — | 1,597 | (22,598 | ) | ||||||||
Other noninterest expense | (138,640 | ) | (23,502 | ) | (5,576 | ) | (167,718 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (183,753 | ) | (23,930 | ) | (3,979 | ) | (211,662 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings (loss) before income taxes | 81,305 | 19,777 | (7,586 | ) | 93,496 | |||||||||
Income tax (expense) benefit | (31,542 | ) | (8,327 | ) | 3,174 | (36,695 | ) | |||||||
| | | | | | | | | | | | | | |
Net earnings (loss) | $ | 49,763 | $ | 11,450 | $ | (4,412 | ) | $ | 56,801 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Year Ended December 31, 2011 | ||||||||||||||
Results of Operations | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Interest income | $ | 276,734 | $ | 18,550 | $ | — | $ | 295,284 | ||||||
Intersegment interest income (expense) | 1,226 | (1,226 | ) | — | — | |||||||||
Other interest expense | (27,720 | ) | — | (4,923 | ) | (32,643 | ) | |||||||
| | | | | | | | | | | | | | |
Net interest income | 250,240 | 17,324 | (4,923 | ) | 262,641 | |||||||||
| | | | | | | | | | | | | | |
Provision for credit losses | (26,520 | ) | (50 | ) | — | (26,570 | ) | |||||||
| | | | | | | | | | | | | | |
FDIC loss sharing income | 7,776 | — | — | 7,776 | ||||||||||
Other noninterest income | 22,833 | 660 | 157 | 23,650 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | 30,609 | 660 | 157 | 31,426 | ||||||||||
| | | | | | | | | | | | | | |
OREO expense | (10,676 | ) | — | — | (10,676 | ) | ||||||||
Intangible asset amortization | (8,264 | ) | (164 | ) | — | (8,428 | ) | |||||||
Acquisition and integration costs | (600 | ) | — | — | (600 | ) | ||||||||
Other noninterest expense | (141,188 | ) | (10,846 | ) | (8,255 | ) | (160,289 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (160,728 | ) | (11,010 | ) | (8,255 | ) | (179,993 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings (loss) before income taxes | 93,601 | 6,924 | (13,021 | ) | 87,504 | |||||||||
Income tax (expense) benefit | (39,554 | ) | (2,917 | ) | 5,671 | (36,800 | ) | |||||||
| | | | | | | | | | | | | | |
Net earnings (loss) | $ | 54,047 | $ | 4,007 | $ | (7,350 | ) | $ | 50,704 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
CONDENSED_FINANCIAL_INFORMATIO
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ||||||||||
NOTE 22—CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | |||||||||||
The parent company only condensed balance sheets as of December 31, 2013 and 2012 and the related condensed statements of net earnings and condensed statements of cash flows for each of the years in the three-year period ended December 31, 2013 are presented below: | |||||||||||
December 31, | |||||||||||
Parent Company Only | 2013 | 2012 | |||||||||
Condensed Balance Sheets | |||||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Cash and due from banks | $ | 21,835 | $ | 28,472 | |||||||
Investments in subsidiaries | 911,200 | 649,656 | |||||||||
Other assets | 10,341 | 20,174 | |||||||||
| | | | | | | | ||||
Total assets | $ | 943,376 | $ | 698,302 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Liabilities: | |||||||||||
Subordinated debentures | $ | 132,645 | $ | 108,250 | |||||||
Other liabilities | 1,638 | 931 | |||||||||
| | | | | | | | ||||
Total liabilities | 134,283 | 109,181 | |||||||||
Stockholders' equity | 809,093 | 589,121 | |||||||||
| | | | | | | | ||||
Total liabilities and stockholders' equity | $ | 943,376 | $ | 698,302 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Year Ended December 31, | |||||||||||
Parent Company Only | 2013 | 2012 | 2011 | ||||||||
Condensed Statements of Earnings | |||||||||||
(In thousands) | |||||||||||
Acquisition-related securities gain | $ | 5,222 | $ | — | $ | — | |||||
Debt termination income | — | 1,597 | — | ||||||||
Miscellaneous income | 104 | 114 | 157 | ||||||||
Dividends from Bank subsidiary | 48,000 | 50,000 | 25,500 | ||||||||
| | | | | | | | | | | |
Total income | 53,326 | 51,711 | 25,657 | ||||||||
| | | | | | | | | | | |
Interest expense | 3,796 | 3,721 | 4,923 | ||||||||
Operating expenses | 6,061 | 5,576 | 8,255 | ||||||||
| | | | | | | | | | | |
Total expenses | 9,857 | 9,297 | 13,178 | ||||||||
| | | | | | | | | | | |
Earnings before income taxes and equity in undistributed earnings of subsidiaries | 43,469 | 42,414 | 12,479 | ||||||||
Income tax benefit | 4,038 | 3,174 | 5,671 | ||||||||
| | | | | | | | | | | |
Earnings before equity in undistributed earnings of subsidiaries | 47,507 | 45,588 | 18,150 | ||||||||
Equity in undistributed earnings of subsidiaries | (2,392 | ) | 11,213 | 32,554 | |||||||
| | | | | | | | | | | |
Net earnings | $ | 45,115 | $ | 56,801 | $ | 50,704 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended December 31, | |||||||||||
Parent Company Only | 2013 | 2012 | 2011 | ||||||||
Condensed Statements of Cash Flows | |||||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 45,115 | $ | 56,801 | $ | 50,704 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Acquisition-related securities gain | (5,222 | ) | — | — | |||||||
Change in other assets | (609 | ) | 711 | (4,533 | ) | ||||||
Change in liabilities | 4,932 | (4,122 | ) | 6,262 | |||||||
Tax effect in stockholders' equity of restricted stock vesting | (364 | ) | (102 | ) | 501 | ||||||
Earned stock compensation | 441 | 715 | 3,551 | ||||||||
Equity in undistributed (earnings) losses of subsidiaries | 2,392 | (11,213 | ) | (32,554 | ) | ||||||
| | | | | | | | | | | |
Net cash provided by operating activities | 46,685 | 42,790 | 23,931 | ||||||||
| | | | | | | | | | | |
Cash flows from investing activities: | |||||||||||
Net cash and cash equivalents acquired in acquisition | 857 | — | — | ||||||||
Purchases of securities available-for-sale | — | (1,500 | ) | (2,580 | ) | ||||||
| | | | | | | | | | | |
Net cash provided by (used in) investing activities | 857 | (1,500 | ) | (2,580 | ) | ||||||
| | | | | | | | | | | |
Cash flows from financing activities: | |||||||||||
Redemptions of subordinated debentures | — | (18,558 | ) | — | |||||||
Tax effect in stockholders' equity of restricted stock vesting | 364 | 102 | (501 | ) | |||||||
Restricted stock surrendered | (13,537 | ) | (1,475 | ) | (1,465 | ) | |||||
Cash dividends paid | (41,006 | ) | (28,787 | ) | (7,626 | ) | |||||
| | | | | | | | | | | |
Net cash used in financing activities | (54,179 | ) | (48,718 | ) | (9,592 | ) | |||||
| | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | (6,637 | ) | (7,428 | ) | 11,759 | ||||||
Cash and cash equivalents, beginning of year | 28,472 | 35,900 | 24,141 | ||||||||
| | | | | | | | | | | |
Cash and cash equivalents, end of year | $ | 21,835 | $ | 28,472 | $ | 35,900 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Common stock issued for First California Financial Group acquisition | $ | 242,268 | $ | — | $ | — |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (Unaudited) | ' | |||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (Unaudited) | ' | |||||||||||||
NOTE 23—SELECTED QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||||
The following table sets forth our unaudited, quarterly results for the periods indicated: | ||||||||||||||
Three Months Ended | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Interest income | $ | 83,856 | $ | 85,158 | $ | 71,631 | $ | 69,269 | ||||||
Interest expense | (2,598 | ) | (2,869 | ) | (3,158 | ) | (3,576 | ) | ||||||
| | | | | | | | | | | | | | |
Net interest income | 81,258 | 82,289 | 68,473 | 65,693 | ||||||||||
| | | | | | | | | | | | | | |
Negative provision (provision) for credit losses | 1,338 | 4,167 | 1,842 | (3,137 | ) | |||||||||
| | | | | | | | | | | | | | |
FDIC loss sharing expense, net | (10,593 | ) | (7,032 | ) | (5,410 | ) | (3,137 | ) | ||||||
(Loss) gain on sale of securities | (272 | ) | — | — | 409 | |||||||||
Acquisition-related securities gain | — | 5,222 | — | — | ||||||||||
Other noninterest income | 6,939 | 6,937 | 5,613 | 5,568 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | (3,926 | ) | 5,127 | 203 | 2,840 | |||||||||
| | | | | | | | | | | | | | |
Accelerated vesting of restricted stock | (12,420 | ) | — | — | — | |||||||||
Non-covered OREO expense, net | (25 | ) | 88 | (80 | ) | (313 | ) | |||||||
Covered OREO expense, net | 594 | 332 | 94 | 813 | ||||||||||
Acquisition and integration costs | (4,253 | ) | (5,450 | ) | (17,997 | ) | (692 | ) | ||||||
Other noninterest expense | (49,984 | ) | (51,170 | ) | (46,233 | ) | (43,991 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (66,088 | ) | (56,200 | ) | (64,216 | ) | (44,183 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings from continuing operations before income taxes | 12,582 | 35,383 | 6,302 | 21,213 | ||||||||||
Income tax expense | (9,135 | ) | (11,243 | ) | (1,906 | ) | (7,719 | ) | ||||||
| | | | | | | | | | | | | | |
Net earnings from continuing operations | 3,447 | 24,140 | 4,396 | 13,494 | ||||||||||
| | | | | | | | | | | | | | |
Earnings (loss) from discontinued operations before income taxes | (578 | ) | 39 | (81 | ) | — | ||||||||
Income tax (expense) benefit | 240 | (16 | ) | 34 | — | |||||||||
| | | | | | | | | | | | | | |
Net earnings (loss) from discontinued operations | (338 | ) | 23 | (47 | ) | — | ||||||||
| | | | | | | | | | | | | | |
Net earnings | $ | 3,109 | $ | 24,163 | $ | 4,349 | $ | 13,494 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Basic earnings per share: | ||||||||||||||
Net earnings from continuing operations | $ | 0.07 | $ | 0.53 | $ | 0.11 | $ | 0.37 | ||||||
Net earnings | $ | 0.06 | $ | 0.53 | $ | 0.11 | $ | 0.37 | ||||||
Diluted earnings per share: | ||||||||||||||
Net earnings from continuing operations | $ | 0.07 | $ | 0.53 | $ | 0.11 | $ | 0.37 | ||||||
Net earnings | $ | 0.06 | $ | 0.53 | $ | 0.11 | $ | 0.37 | ||||||
Three Months Ended | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Interest income | $ | 73,702 | $ | 75,123 | $ | 72,890 | $ | 74,400 | ||||||
Interest expense | (4,099 | ) | (4,352 | ) | (4,477 | ) | (6,720 | ) | ||||||
| | | | | | | | | | | | | | |
Net interest income | 69,603 | 70,771 | 68,413 | 67,680 | ||||||||||
| | | | | | | | | | | | | | |
Negative provision for credit losses | 4,333 | 2,141 | 271 | 6,074 | ||||||||||
| | | | | | | | | | | | | | |
FDIC loss sharing expense, net | (6,022 | ) | (367 | ) | (102 | ) | (3,579 | ) | ||||||
Gain on sale of securities | 1,239 | — | — | — | ||||||||||
Other-than-temporary impairment loss on covered security | — | — | (1,115 | ) | — | |||||||||
Other noninterest income | 6,840 | 6,049 | 6,088 | 6,841 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | 2,057 | 5,682 | 4,871 | 3,262 | ||||||||||
| | | | | | | | | | | | | | |
Non-covered OREO expense, net | (316 | ) | (1,883 | ) | (130 | ) | (1,821 | ) | ||||||
Covered OREO expense, net | 461 | (4,290 | ) | (2,130 | ) | (822 | ) | |||||||
Acquisition and integration costs | (1,092 | ) | (2,101 | ) | (871 | ) | (25 | ) | ||||||
Debt termination expense | — | — | — | (22,598 | ) | |||||||||
Other noninterest expense | (42,578 | ) | (43,383 | ) | (44,454 | ) | (43,629 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (43,525 | ) | (51,657 | ) | (47,585 | ) | (68,895 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings before income taxes | 32,468 | 26,937 | 25,970 | 8,121 | ||||||||||
Income tax expense | (12,576 | ) | (10,849 | ) | (10,413 | ) | (2,857 | ) | ||||||
| | | | | | | | | | | | | | |
Net earnings | $ | 19,892 | $ | 16,088 | $ | 15,557 | $ | 5,264 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Earnings per share: | ||||||||||||||
Basic | $ | 0.54 | $ | 0.43 | $ | 0.42 | $ | 0.14 | ||||||
Diluted | $ | 0.54 | $ | 0.43 | $ | 0.42 | $ | 0.14 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 24—RELATED PARTY TRANSACTIONS | |
Castle Creek Financial, LLC, or Castle Creek Financial, serves as the exclusive financial advisor for the Company pursuant to a services agreement dated May 18, 2011, between Castle Creek Financial and the Company. Castle Creek Financial is an affiliate of Castle Creek Capital, LLC, which is controlled by the Company's chairman. During 2013, the Bank paid an advisory fee of $1.3 million to Castle Creek Financial in connection with the FCAL acquisition that was completed on May 31, 2013. During 2012, the Bank paid an advisory fee of $448,000 to Castle Creek Financial in connection with the APB acquisition that was completed on August 1, 2012. During 2011, there were no amounts paid by the Company to Castle Creek Financial. | |
CapGen Capital Group II LP, or CapGen, is a significant stockholder of the Company and our top tier holding Company. One of the Company's directors is a principal with CapGen and, pursuant to an agreement, 80% of his board service fees are remitted to CapGen Financial, LLC. In addition, in lieu of the stock awards with a value of $30,000 on the date of grant in 2013, 2012 and 2011 for non-employee directors, 80% of such value was remitted in cash to CapGen Financial, LLC. The Company paid CapGen Financial, LLC $72,000 related to board service fees for each of 2013, 2012, and 2011. | |
As of December 31, 2013 and 2012, there were no loans outstanding to any members of our board of directors or executive management. Such parties' deposits as of those dates totaled $3.6 million and $4.2 million, respectively, and bear market rates and terms. | |
SUBSEQUENT_EVENTS_Unaudited
SUBSEQUENT EVENTS (Unaudited) | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENTS (Unaudited) | ' |
SUBSEQUENT EVENTS (Unaudited) | ' |
NOTE 25—SUBSEQUENT EVENTS (Unaudited) | |
Dividend Approval | |
On February 12, 2014, the Company announced that the Board of Directors had declared a quarterly cash dividend of $0.25 per common share payable on March 5, 2014, to stockholders of record at the close of business on February 24, 2014. | |
We have evaluated events that have occurred subsequent to December 31, 2013 and have concluded there are no subsequent events that would require recognition in the accompanying consolidated financial statements. | |
NATURE_OF_OPERATIONS_AND_SUMMA1
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Basis of Presentation | ' |
(a) Basis of Presentation | |
The accounting and reporting policies of the Company are in accordance with U.S. generally accepted accounting principles, which we may refer to as U.S. GAAP. All significant intercompany balances and transactions have been eliminated. | |
Use of Estimates | ' |
(b) Use of Estimates | |
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. Actual results could differ from those estimates. Material estimates subject to change in the near term include, among other items, the allowance for credit losses, the carrying value of intangible assets, the carrying value of the FDIC loss sharing asset, and the realization of deferred tax assets. | |
As described in Note 4, Acquisitions, below, we completed the acquisition of FCAL on May 31, 2013. The acquired assets and liabilities of FCAL were measured at their estimated fair values. Management made significant estimates and exercised significant judgment in estimating fair values and accounting for the acquired assets and assumed liabilities of FCAL. | |
Reclassifications | ' |
(c) Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period's presentation format. Starting with the June 30, 2013 quarter-end, loan tables presented non-purchased credit impaired ("Non-PCI") and purchased credit impaired ("PCI") loan categories in addition to covered and non-covered loan information. Previously the loan tables only presented covered and non-covered loan categories. | |
Cash and Cash Equivalents | ' |
(d) Cash and Cash Equivalents | |
For purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash, due from banks, and interest-earning deposits in financial institutions. Interest-earning assets in financial institutions represent cash held at the Federal Reserve Bank of San Francisco ("FRBSF"), the majority of which is immediately available. | |
Investment Securities | ' |
(e) Investment Securities | |
We determine the classification of securities at the time of purchase. If we have the intent and the ability at the time of purchase to hold securities until maturity, they are classified as held-to-maturity. Investment securities held-to-maturity are stated at amortized cost. Securities to be held for indefinite periods of time, but not necessarily to be held-to-maturity or on a long-term basis, are classified as available-for-sale and carried at estimated fair value, with unrealized gains or losses reported as a separate component of stockholders' equity in accumulated other comprehensive income, net of applicable income taxes. Securities available-for-sale include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in interest rates, prepayment risk, and other related factors. Securities are individually evaluated for appropriate classification when acquired; consequently, similar types of securities may be classified differently depending on factors existing at the time of purchase. | |
The carrying values of all securities are adjusted for amortization of premiums and accretion of discounts over the period to maturity of the related security using the interest method. Realized gains or losses on the sale of securities, if any, are determined using the amortized cost of the specific securities sold. If a decline in the fair value of a security below its amortized cost is judged by management to be other than temporary, the cost basis of the security is written down to its fair value and the amount of the write-down is recognized through a charge to earnings. | |
Investments in Federal Home Loan Bank of San Francisco, or FHLB, stock are carried at cost and evaluated regularly for impairment. FHLB stock is expected to be redeemed at an amount not to exceed par and is a required investment based on measurements of the Bank's assets and/or borrowing levels. | |
Loans and Leases Held for Sale and Servicing Assets | ' |
(f) Loans and Leases Held for Sale and Servicing Assets | |
Loans and leases held for sale include loans and leases originated or purchased for resale. Loans and leases originated or purchased for resale include the principal amount outstanding net of unearned income, and are carried at the lower of cost or fair value on an aggregate basis. A decline in the aggregate fair value of the loans below their aggregate carrying amount is recognized through a charge to earnings in the period of such decline. Unearned income on these loans and leases is taken into earnings when they are sold. At December 31, 2013 and 2012, the Company had no loans or leases held for sale. | |
Gains or losses resulting from sales of loans and leases are recognized at the date of settlement and are based on the difference between the cash received and the carrying value of the related loans or leases less related transaction costs. A transfer of financial assets in which control is surrendered is accounted for as a sale to the extent that consideration other than beneficial interests in the transferred assets is received in the exchange. Assets, liabilities, derivative financial instruments or other retained interests issued or obtained through the sale of financial assets are measured at estimated fair value, if practicable. Lease sales where we keep part of the lease payment stream are accounted for as non-recourse borrowings. | |
The most common retained interest related to loan sales is a servicing asset. Servicing assets are amortized in proportion to and over the period of estimated future net servicing income. The amortization of the servicing asset and the servicing income are included in noninterest income in the consolidated statement of earnings. The fair value of the servicing assets is estimated by discounting the future cash flows using market-based discount rates and prepayment speeds. Our servicing asset is evaluated regularly for impairment. We stratify the servicing asset based on the original term to maturity and the year of origination of the underlying loans for purposes of measuring impairment. The risk is that loans prepay faster than anticipated and the fair value of the asset declines. If the fair value of the servicing asset is less than the amortized carrying value, the asset is considered impaired and an impairment charge will be taken against earnings. | |
At December 31, 2013 and 2012, the servicing asset totaled $807,000 and $1.0 million, respectively, and related to the servicing of approximately $65.0 million and $62.7 million in SBA loans, respectively. The servicing asset is included in other assets on the consolidated balance sheets. All loans sold after December 31, 2008, were sold on a servicing released basis. | |
Loans and Leases | ' |
(g) Loans and Leases | |
Originated loans. Loans are originated by the Company with the intent to hold them for investment and are stated at the principal amount outstanding, net of unearned income. Unearned income includes deferred unamortized nonrefundable loan fees and direct loan origination costs. Net deferred fees or costs are recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income when the related loans are paid off or sold. The amortization of loan fees or costs is discontinued when a loan is placed on nonaccrual status. Interest income is recorded on an accrual basis in accordance with the terms of the respective loan and includes prepayment penalties. | |
Purchased loans. Purchased loans are stated at the principal amount outstanding, net of unearned discounts or unamortized premiums. All loans acquired in our acquisitions are initially measured and recorded at their fair value on the acquisition date. A component of the initial fair value measurement is an estimate of the credit losses over the life of the purchased loans. Purchased loans are also evaluated for impairment as of the acquisition date and are accounted for as "acquired non-impaired" or "purchased credit impaired" loans. | |
Acquired non-impaired loans. Acquired non-impaired loans are those loans for which there was no evidence of credit deterioration at their acquisition date and it was probable that we would be able to collect all contractually required payments. Acquired non-impaired loans, together with originated loans, are referred to as non-purchased credit impaired ("Non-PCI") loans. Purchase discount or premium on acquired non-impaired loans is recognized as an adjustment to interest income over the contractual life of such loans using the effective interest method or taken into income when the related loans are paid off or sold. | |
Purchased credit impaired loans. Purchased credit impaired ("PCI") loans are accounted for in accordance with ASC Subtopic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality." A purchased loan is deemed to be credit impaired when there is evidence of credit deterioration since its origination and it is probable at the acquisition date that we would be unable to collect all contractually required payments. We apply PCI loan accounting when (i) we acquire loans deemed to be impaired, and (ii) as a general policy election for non-impaired loans that we acquire in a distressed bank acquisition. | |
For PCI loans, at the time of acquisition we (i) calculated the contractual amount and timing of undiscounted principal and interest payments (the "undiscounted contractual cash flows") and (ii) estimated the amount and timing of undiscounted expected principal and interest payments (the "undiscounted expected cash flows"). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loan portfolios; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. | |
The excess of expected cash flows at acquisition over the initial fair value of acquired impaired loans is referred to as the "accretable yield" and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. If the timing of cash flows is uncertain, any cash payments will be recognized when received. | |
As part of the fair value process and the subsequent accounting, the Company aggregates PCI loans into pools having common credit risk characteristics such as type and risk rating. Increases in expected cash flows over those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in the amount and changes in the timing of expected cash flows compared to those previously estimated decrease the accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses. As the accretable yield increases or decreases from changes in cash flow expectations, the offset is a decrease or increase to the nonaccretable difference. The accretable yield is measured at each financial reporting date based on information then currently available and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. | |
PCI loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual with interest income recognized on either a cash basis or as a reduction of the principal amount outstanding. | |
Covered loans. We refer to loans that are covered by loss sharing agreements with the Federal Deposit Insurance Corporation ("FDIC") as covered loans. Our covered loans include loans that we acquired in the Los Padres and Affinity acquisitions, and through the FCAL acquisition, loans for which we assumed the loss sharing agreements between First California Bank ("FCB") and the FDIC related to FCB's acquisitions of Western Commercial Bank ("Western Commercial") and San Luis Trust Bank ("San Luis"). We will be reimbursed for a substantial portion of any future losses on such loans under the terms of the FDIC loss sharing agreements. The FDIC loss sharing asset related to covered loans is reported separately in the balance sheet. See "—FDIC Loss Sharing Asset." | |
When we refer to non-covered loans, we are referring to loans not covered by our loss sharing agreements with the FDIC. | |
We apply acquired impaired loan accounting to the majority of the covered loans as such covered loans were deemed to be impaired on the acquisition date. We apply acquired non-impaired loan accounting to covered revolving credit agreements, mainly home equity loans and commercial asset-based lines of credit, where the borrower had revolving privileges. | |
Leases. Leases are recorded as direct financing (capital) leases for accounting purposes. Lease receivables are recorded on the balance sheet but the leased property is not, although we generally retain legal title to the leased property until the end of each lease. Leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized over the weighted average life of the lease portfolio. Leases acquired in an acquisition are initially measured and recorded at their fair value on the acquisition date. Purchase discount or premium on acquired leases is recognized as an adjustment to interest income over the contractual life of the leases using the effective interest method or taken into income when the related leases are paid off. | |
Leases in process. We offer "progress funding" which works similarly to a bridge loan by financing an item to be leased during the construction or build phase. Lessees pay interest on the amount advanced to fund a project at an interest rate implicit in the master lease agreement; such income is deferred until the project funding is complete. The amount of funding advanced during the progress funding period is recorded in other assets. At the end of the progress funding period, we either (i) enter into a lease agreement with the lessee and the deferred income is accreted to interest income using an effective yield method over the life of the lease, or (ii) sell the lease to a third party lender and recognize the deferred income as part of any gain or loss on such sale. | |
Delinquent or past due loans and leases. Loans and leases are considered delinquent when principal or interest payments are past due 30 days or more; delinquent loans may remain on accrual status between 30 days and 89 days past due. | |
Nonaccrual loans and leases. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability in the normal course of business. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan's principal balance is deemed collectable. Loans are restored to accrual status when the loans become both well-secured and are in the process of collection. Leases are designated as nonaccrual leases when the recognition of interest has been discontinued. The recognition of interest on leases is discontinued when a lessee's payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability. Interest on nonaccrual leases is subsequently recognized only to the extent that cash is received and the lease balance is deemed collectable. Leases are restored to accrual status when the leases become both well secured and are in the process of collection. | |
Impaired loans and leases. A loan or lease is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan or lease agreement. Impaired loans and leases include loans and leases on nonaccrual status and performing restructured loans. Income from impaired loans is recognized on an accrual basis unless the loan is on nonaccrual status. Income from loans on nonaccrual status is recognized to the extent cash is received and when the loan's principal balance is deemed collectable. We measure impairment of a loan by using the estimated fair value of the collateral, less estimated costs to sell, including senior obligations such as delinquent property taxes, if the loan is collateral-dependent and the present value of the expected future cash flows discounted at the loan's effective interest rate if the loan is not collateral-dependent. The impairment amount on a collateral-dependent loan is charged-off to the allowance and the impairment amount on a loan that is not collateral-dependent is set up as a specific reserve. We measure impairment of a lease based upon the present value of the scheduled lease and residual cash flows, discounted at the lease's effective interest rate. | |
Troubled debt restructurings. A loan is classified as a troubled debt restructuring when we grant a concession to a borrower experiencing financial difficulties. These concessions may include a reduction of the interest rate, principal or accrued interest, extension of the maturity date or other actions intended to minimize potential losses. All loan modifications are evaluated on an individual basis to determine whether such modifications meet the criteria to be classified as a troubled debt restructuring under ASC Subtopic 310-40, "Troubled Debt Restructurings by Creditors." Loans restructured at a rate equal to or greater than that of a new loan with comparable risk at the time the loan is modified may be excluded from restructured loan disclosures in years subsequent to the restructuring if the loans are in compliance with their modified terms. | |
A loan that has been placed on nonaccrual status that is subsequently restructured will usually remain on nonaccrual status until the borrower is able to demonstrate repayment performance in compliance with the restructured terms for a sustained period, typically for six months. A restructured loan may return to accrual status sooner based on other significant events or mitigating circumstances. A loan that has not been placed on nonaccrual status may be restructured and such loan may remain on accrual status after such restructuring. In these circumstances, the borrower has made payments before and after the restructuring. Generally, this restructuring involves a reduction in the loan interest rate and/or a change to interest-only payments for a period of time. The restructured loan is considered impaired despite the accrual status and a specific reserve is calculated based on the present value of expected cash flows discounted at the loan's original effective interest rate. | |
Allowances for Credit Losses | ' |
(h) Allowances for Credit Losses | |
Allowance for credit losses on Non-PCI loans and leases. The allowance for credit losses on Non-PCI loans and leases is the combination of the allowance for loan and lease losses and the reserve for unfunded loan commitments. The allowance for loan and lease losses is reported as a reduction of outstanding loan and lease balances and the reserve for unfunded loan commitments is included within other liabilities. Generally, as loans are funded, the amount of the commitment reserve applicable to such funded loans is transferred from the reserve for unfunded loan commitments to the allowance for loan and lease losses based on our allowance methodology. The following discussion is for Non-PCI loans and leases and the allowance for credit losses thereon. Refer to "Allowance for Credit Losses on PCI Loans" for the policy on PCI loans. | |
The allowance for loan and lease losses is maintained at a level deemed appropriate by management to adequately provide for known and inherent risks in the loan and lease portfolio and other extensions of credit at the balance sheet date. The allowance is based upon a continuing review of the portfolio, past loan and lease loss experience, current economic conditions that may affect the borrowers' ability to pay, and the underlying collateral value of the loans and leases. Loans and leases that are deemed to be uncollectable are charged off and deducted from the allowance. The provision for loan and lease losses and recoveries on loans and leases previously charged off are added to the allowance. | |
The methodology we use to estimate the amount of our allowance for credit losses is based on both objective and subjective criteria. While some criteria are formula driven, other criteria are subjective inputs included to capture environmental and general economic risk elements which may trigger losses in the loan and lease portfolios, and to account for the varying levels of credit quality in the loan and lease portfolios of the entities we have acquired that have not yet been captured in our objective loss factors. | |
Specifically, our allowance methodology contains three key elements: (i) amounts based on specific evaluations of impaired loans and leases; (ii) amounts of estimated losses on several pools of loans categorized by risk rating and loan and lease type; and (iii) amounts for environmental and general economic factors that indicate probable losses incurred but not captured through the other elements of our allowance process. In addition, for loans and leases measured at fair value on the acquisition date and deemed to be non-impaired, our allowance methodology captures deterioration in credit quality and other inherent risks of such acquired assets experienced after the purchase date. | |
Impaired loans and leases are identified at each reporting date based on certain criteria and the majority of which are individually reviewed for impairment. Non-PCI nonaccrual loans and leases with an unpaid principal balance over $250,000 and all performing restructured loans are reviewed individually for the amount of impairment. Non-PCI nonaccrual loans and leases with an unpaid principal balance of $250,000 or less are evaluated for impairment collectively. A loan or lease is considered impaired when it is probable that we will be unable to collect all amounts due according to the original contractual terms of the agreement. We measure impairment of a loan based upon the fair value of the loan's collateral if the loan is collateral-dependent or the present value of cash flows, discounted at the loan's effective interest rate, if the loan is not collateral-dependent. The impairment amount on a collateral-dependent loan is charged-off to the allowance, and the impairment amount on a loan that is not collateral-dependent is set up as a specific reserve within the allowance. We measure impairment of a lease based upon the present value of the scheduled lease and residual cash flows, discounted at the lease's effective interest rate. Increased charge-offs or additions to specific reserves generally result in increased provisions for credit losses. | |
Our loan and lease portfolio, excluding impaired loans and leases that are evaluated individually, is categorized into several pools for purposes of determining allowance amounts by pool. The pools we currently evaluate are: commercial real estate construction, residential real estate construction, SBA real estate, hospitality real estate, real estate other, commercial collateralized, commercial unsecured, SBA commercial, consumer, asset-based and leasing. Within these pools, we then evaluate loans and leases not adversely classified, which we refer to as "pass" credits, separately from adversely classified loans and leases. The adversely classified loans and leases are further grouped into three credit risk rating categories: "special mention," "substandard," and "doubtful," which we define as follows: | |
• | |
Special Mention: Loans and leases classified as "special mention" have a potential weakness that requires management's attention. If not addressed, these potential weaknesses may result in further deterioration in the borrower's ability to repay the loan or lease. | |
• | |
Substandard: Loans and leases classified as "substandard" have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the possibility that we will sustain some loss if the weaknesses are not corrected. | |
• | |
Doubtful: Loans and leases classified as "doubtful" have all the weaknesses of those classified as "substandard," with the additional trait that the weaknesses make collection or repayment in full highly questionable and improbable. | |
In addition, we may refer to the loans and leases classified as "substandard" and "doubtful" together as "classified" loans and leases. For further information on classified loans and leases, see Note 7, Loans and Leases, of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data." | |
The allowance amounts for "pass" rated loans and leases and those loans and leases adversely classified, which are not reviewed individually, are determined using historical loss rates developed through migration analysis. The migration analysis is updated quarterly based on historic losses and movement of loans between ratings. As a result of this migration analysis and its quarterly updating, decreases we experience in both charge-offs and adverse classifications generally result in lower loss factors. | |
Finally, in order to ensure our allowance methodology is incorporating recent trends and economic conditions, we apply environmental and general economic factors to our allowance methodology including: credit concentrations; delinquency trends; economic and business conditions; the quality of lending management and staff; lending policies and procedures; loss and recovery trends; nature and volume of the portfolio; nonaccrual and problem loan trends; usage trends of unfunded commitments; and other adjustments for items not covered by other factors. | |
Management believes that the allowance for loan and lease losses is adequate and appropriate for the known and inherent risks in our Non-PCI loan and lease portfolio. In making its evaluation, management considers certain quantitative and qualitative factors including the Company's historical loss experience; the volume and type of lending conducted by the Company; the results of our credit review process; the levels of classified and criticized loans and leases; the levels of impaired loans and leases, including nonperforming loans and leases and performing restructured loans; regulatory policies; general economic conditions; underlying collateral values; and other factors regarding collectability and impairment. To the extent we experience, for example, increased levels of documentation deficiencies, adverse changes in collateral values, or negative changes in economic and business conditions that adversely affect our borrowers, our classified loans and leases may increase. Higher levels of classified loans and leases generally result in higher allowances for loan and lease losses. | |
We recognize that the determination of the allowance for loan and lease losses is sensitive to the assigned credit risk ratings and inherent loss rates at any given point in time. Therefore, we perform sensitivity analyses to provide insight regarding the impact that adverse changes in credit risk ratings may have on our allowance for loan and lease losses. The sensitivity analyses have inherent limitations and are based on various assumptions as of a point in time and, accordingly, it is not necessarily representative of the impact loan risk rating changes may have on the allowance for loan and lease losses. | |
Management also believes that the reserve for unfunded loan commitments is appropriate. In making this determination, we use the same methodology for the reserve for unfunded loan commitments as we do for the allowance for loan and lease losses and consider the same quantitative and qualitative factors, as well as an estimate of the probability of advances of the commitments correlated to their credit risk rating. | |
Our federal and state banking regulators, as an integral part of their examination process, periodically review the Company's allowance for credit losses. Our regulators may require the Company to recognize additions to the allowance based on their judgments related to information available to them at the time of their examinations. | |
Allowance for credit losses on PCI loans. The PCI loans are subject to our internal and external credit review. If deterioration in the expected cash flows results in a reserve requirement, a provision for credit losses is charged to earnings. For PCI loans, the allowance for loan losses is measured at the end of each financial reporting period based on expected cash flows. Decreases or (increases) in the amount and changes in the timing of expected cash flows on the PCI loans as of the financial reporting date compared to those previously estimated are usually recognized by recording a provision or a (negative provision) for credit losses on such loans. | |
FDIC Loss Sharing Asset | ' |
(i) FDIC Loss Sharing Asset | |
The FDIC loss sharing asset relates to assets covered by the loss sharing agreements between the Bank and the FDIC arising from the acquisitions of Affinity Bank and Los Padres Bank and, through the FCAL acquisition, the assumption of the loss sharing agreements between First California Bank and the FDIC arising from FCB's acquisition of Western Commercial and San Luis. The FDIC loss sharing asset related to Western Commercial and San Luis was measured at its fair value as of May 31, 2013 in conjunction with the FCAL acquisition. The FDIC loss sharing asset related to Los Padres and Affinity was measured at its estimated fair value at their respective acquisition dates. | |
An increase in the expected amount of losses on the covered assets will increase the FDIC loss sharing asset; such increase is recognized through a credit to FDIC loss sharing income. Recoveries on previous losses paid to us by the FDIC reduce the FDIC loss sharing asset by a charge to FDIC loss sharing income. In addition, decreases in the expected amount of losses on covered assets will decrease the amount of funds expected to be collected from the FDIC and will therefore reduce the FDIC loss sharing asset through higher prospective amortization expense. The FDIC loss sharing asset is being amortized to its estimated value over the lesser of the term of the loss sharing agreements or the remaining contractual life of the assets covered by the loss sharing agreements. | |
Both the Western Commercial and San Luis loss sharing agreements contain true-up provisions, under which we will owe the FDIC amounts at the end of the loss sharing agreements based on the performance of the covered assets. The true-up liability is included in other liabilities in the accompanying condensed consolidated balance sheets. | |
Under the terms of the Affinity loss sharing agreement, the FDIC will (a) absorb 80% of losses and receive 80% of loss recoveries on the first $234 million of losses on covered assets and (b) absorb 95% of losses and receive 95% of loss recoveries on losses exceeding $234 million. The Affinity loss sharing provisions expire in the third quarters of 2014 and 2019 for non-single family covered assets and single family covered assets, respectively, while the related loss recovery provisions expire in the third quarters of 2017 and 2019, respectively. | |
Under the terms of the Los Padres loss sharing agreement, the FDIC will absorb 80% of losses and receive 80% of loss recoveries on the covered assets. The Los Padres loss sharing provisions expire in the third quarters of 2015 and 2020 for non-single family and single family covered assets, respectively, while the related loss recovery provisions expire in the third quarters of 2018 and 2020, respectively. | |
Under the terms of the Western Commercial loss sharing agreement, the FDIC will absorb 80% of losses and receive 80% of loss recoveries on the covered assets; all of which were deemed to be non-single family. The Western Commercial loss sharing provision expires in the fourth quarter of 2015, while the related loss recovery provision expires in the fourth quarter of 2018. | |
Under the terms of the San Luis loss sharing agreement, the FDIC will absorb 80% of losses and receive 80% of loss recoveries on the covered assets. The San Luis loss sharing provisions expire in the first quarters of 2016 and 2021 for non-single family and single family covered assets, respectively, while the related loss recovery provisions expire in the first quarters of 2019 and 2021, respectively. | |
Land, Premises and Equipment | ' |
(j) Land, Premises and Equipment | |
Premises and equipment are stated at cost less accumulated depreciation and amortization. Land is not depreciated. Depreciation and amortization is charged to noninterest expense using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of furniture, fixtures and equipment range from 3 to 10 years and for buildings up to 35 years. Leasehold improvements are amortized over their estimated useful lives, or the life of the lease, whichever is shorter. | |
Other Real Estate Owned | ' |
(k) Other Real Estate Owned | |
Non-covered OREO. Other real estate owned, or OREO, is initially recorded at the estimated fair value of the property, based on current independent appraisals obtained at the time of acquisition, less estimated costs to sell, including senior obligations such as delinquent property taxes. The excess of the recorded loan balance over the estimated fair value of the property at the time of acquisition less estimated costs to sell is charged to the allowance for loan losses. Any subsequent write-downs are charged to noninterest expense and recognized through an OREO valuation allowance. Subsequent increases in the fair value of the asset less selling costs reduce the OREO valuation allowance, but not below zero, and are credited to noninterest expense. Gains and losses on the sale of foreclosed properties and operating expenses of such assets are also included in noninterest expense. | |
Covered OREO. Covered OREO was initially recorded at its estimated fair value on the acquisition date based on independent appraisals less estimated selling costs. Any subsequent write-downs due to declines in fair value are charged to noninterest expense with a partial offset to FDIC loss sharing income for the loss reimbursement under the FDIC loss sharing agreement. Any recoveries of previous write-downs are credited to noninterest expense with a corresponding charge to FDIC loss sharing income, net for the portion of the recovery that is due to the FDIC. | |
Income Taxes | ' |
(l) Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the period that includes the enactment date. Any interest or penalties assessed by the taxing authorities is classified in the financial statements as income tax expense. Deferred tax assets are included in other assets on the consolidated balance sheets. | |
On a quarterly basis, the Company evaluates its deferred tax assets to assess whether they are expected to be realized in the future. This determination is based on currently available facts and circumstances, including our current and projected future tax position, the historical level of our taxable income, and estimates of our future taxable income. In most cases, the realization of deferred tax assets is based on our future profitability. To the extent our deferred tax assets are no longer considered more likely than not to be realized, we could be required to record a valuation allowance on our deferred tax assets by charging earnings. | |
Goodwill and Other Intangible Assets | ' |
(m) Goodwill and Other Intangible Assets | |
Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. Goodwill and other intangible assets deemed to have indefinite lives generated from purchase business combinations are not subject to amortization and are instead tested for impairment no less than annually. Impairment exists when the carrying value of the goodwill exceeds its implied fair value. And impairment loss would be recognized in an amount equal to that excess and would be included in noninterest expense in the financial statements. | |
Intangible assets with estimable useful lives are amortized over such useful lives to their estimated residual values. Core deposit intangible assets, which we refer to as CDI, and customer relationship intangible assets, which we refer to as CRI, are recognized apart from goodwill at the time of acquisition based on market valuations prepared by independent third parties. In preparing such valuations, the third parties consider variables such as deposit servicing costs, attrition rates, and market discount rates. CDI assets are amortized to expense over their useful lives, which we have estimated to range from 7 to 10 years. CRI assets are amortized to expense over their useful lives, which we have estimated to range from 4 to 5 years. Both CDI and CRI are reviewed for impairment quarterly or earlier if events or changes in circumstances indicate that their carrying values may not be recoverable. If the recoverable amount of either CDI or CRI is determined to be less than its carrying value, we would then measure the amount of impairment based on an estimate of the intangible asset's fair value at that time. If the fair value is below the carrying value, the intangible asset is reduced to such fair value and the impairment is recognized as noninterest expense in the financial statements. | |
Stock-Based Compensation | ' |
(n) Stock-Based Compensation | |
Compensation expense related to awards of restricted stock is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. The vesting of performance-based restricted stock awards and recognition of related compensation expense may occur over a shorter vesting period if financial performance targets are achieved earlier than anticipated. Amortization of unvested performance-based restricted stock is suspended when it becomes less than probable that the performance targets will be met. Amortization of unvested performance-based restricted stock is discontinued and previous amortization amounts are credited to earnings when it becomes improbable that performance targets will be met. When and if it becomes probable in the future that the performance target will be met a catch up adjustment is made and amortization resumes. | |
Unvested restricted stock participates with common stock in any dividends declared and paid. Dividends paid on unvested restricted stock awards expected to vest and the related tax benefits are included as a net reduction to stockholders' equity. Dividends paid on unvested restricted stock not expected to vest are charged to compensation expense. | |
Business Segments | ' |
(o) Business Segments | |
The Company's reportable segments consist of "Banking," "Asset Financing," and "Other." The Other segment consists of the PacWest Bancorp holding company and other elimination and reconciliation entries. | |
The Bank's Asset Financing segment includes the operations of the divisions and subsidiaries that provide asset-based commercial loans and equipment leases. The asset-based lending products are offered primarily through three business units: (1) First Community Financial ("FCF"), a division of the Bank, based in Phoenix, Arizona; (2) BFI Business Finance ("BFI"), a wholly-owned subsidiary of the Bank, based in San Jose, California; and (3) Celtic, a wholly-owned subsidiary of the Bank based in Santa Monica, California. The Bank's leasing products are offered through EQF, a division of the Bank based in Midvale, Utah. | |
Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Asset Financing segment based upon the Bank's total cost of interest-bearing liabilities. The provision for credit losses is allocated based on actual charge-offs for the period as well as assigning a minimum reserve requirement to the Asset Financing segment. Noninterest income and noninterest expense directly attributable to a segment are assigned to it. | |
Comprehensive Income | ' |
(p) Comprehensive Income | |
Comprehensive income consists of net earnings and net unrealized gains (losses) on securities available-for-sale, net and is presented in the consolidated statements of comprehensive income. | |
Earnings Per Share | ' |
(q) Earnings Per Share | |
In accordance with ASC Topic 260, "Earnings Per Share," all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities and are included in the two-class method of determining basic and diluted earnings per share. All of our unvested restricted stock participates with our common stockholders in dividends. Accordingly, earnings allocated to unvested restricted stock are deducted from net earnings to determine that amount of earnings available to common stockholders. In the two-class method, the amount of our earnings available to common stockholders is divided by the weighted average shares outstanding, excluding any unvested restricted stock, for both the basic and diluted earnings per share. | |
Business Combinations | ' |
(r) Business Combinations | |
Business combinations completed after January 1, 2009, are accounted for under the acquisition method of accounting in accordance with ASC Topic 805, "Business Combinations." Under the acquisition method, the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceeds the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of earnings from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred. | |
Recently Issued Accounting Standards | ' |
(s) Recently Issued Accounting Standards | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." Under ASU 2013-11, an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for us on January 1, 2014 and is to be applied prospectively, although early adoption and retrospective adoption are permitted. The adoption of this standard is not expected to have any material effect on our financial statements. | |
In January 2014, the FASB issued ASU 2014-01, "Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects." ASU 2014-01 allows investors in low-income housing tax credit ("LIHTC") entities that meet certain conditions to present the net tax benefits (net of the amortization of the cost of the investment) within income tax expense. The cost of the investments that meets the conditions will be amortized in proportion to (and over the same period as) the total expected tax benefits, including tax credits and other tax benefits, as they are realized on the tax return. ASU 2014-01 is effective for us on January 1, 2015 and is to be applied retrospectively if investors elect the proportional amortization method. However, if investors have LIHTC investments accounted for under the effective yield method at adoption, they may continue to apply that method for those existing investments. Early adoption is permitted. The adoption of this standard permits expenses currently reported in noninterest expense to be reported in income tax expense. While the adoption of this standard will not have a material impact on our financial statements, total noninterest expense and income tax expense will change. | |
In January 2014, the FASB issued ASU 2014-04, "Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure." ASU 2014-04 clarifies when a creditor should reclassify mortgage loans collateralized by residential real estate from loans receivable to other real estate owned. ASU 2014-04 defines when an in-substance repossession or foreclosure has occurred and when a creditor is considered to have received physical possession of residential real estate collateralizing a mortgage loan. ASU 2014-04 is effective for us on January 1, 2015 and can be applied either prospectively or using a modified retrospective transition method, and early adoption is permitted. We are evaluating the impact this standard may have on our financial statements. | |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
ACQUISITIONS | ' | |||||||||||||
Schedule of balance sheets of the acquired entities presented at estimated fair value as of their respective acquisition dates | ' | |||||||||||||
Acquisition and Date Acquired | ||||||||||||||
First | American | Celtic | Pacific | |||||||||||
California | Perspective | Capital | Western | |||||||||||
Financial | Bank | Corporation | Equipment | |||||||||||
Group | Finance | |||||||||||||
May 31, | August 1, | April 3, | January 3, | |||||||||||
2013 | 2012 | 2012 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Assets Acquired: | ||||||||||||||
Cash and due from banks | $ | 6,124 | $ | 3,370 | $ | 3,435 | $ | 7,092 | ||||||
Interest-earning deposits in financial institutions | 266,889 | 10,081 | — | — | ||||||||||
Investment securities available-for-sale | 4,444 | 48,887 | — | — | ||||||||||
FHLB stock | 9,518 | 1,412 | — | — | ||||||||||
Loans and leases | 1,049,613 | 197,279 | 54,963 | 140,959 | ||||||||||
Other real estate owned | 13,772 | 1,561 | — | — | ||||||||||
Premises and equipment | 15,322 | — | — | — | ||||||||||
FDIC loss sharing asset | 17,241 | — | — | — | ||||||||||
Cash surrender value of life insurance | 13,265 | — | — | — | ||||||||||
Goodwill | 129,070 | 15,047 | 6,645 | 19,033 | ||||||||||
Core deposit and customer relationship intangibles | 7,927 | 1,924 | 1,300 | 1,700 | ||||||||||
Other intangible assets | — | — | 670 | 1,420 | ||||||||||
Leases in process | — | — | — | 19,162 | ||||||||||
Other assets | 47,671 | 4,234 | 69 | 467 | ||||||||||
| | | | | | | | | | | | | | |
Total assets acquired | $ | 1,580,856 | $ | 283,795 | $ | 67,082 | $ | 189,833 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities Assumed: | ||||||||||||||
Noninterest-bearing deposits | $ | 361,166 | $ | 40,673 | $ | — | $ | — | ||||||
Interest-bearing deposits | 739,713 | 178,891 | — | — | ||||||||||
Borrowings from parent | — | — | — | 128,677 | ||||||||||
Other borrowings | — | 5,315 | 46,804 | 15,839 | ||||||||||
Subordinated debentures | 24,061 | — | — | — | ||||||||||
Discontinued operations | 184,619 | — | — | — | ||||||||||
Accrued interest payable and other liabilities | 19,729 | 840 | 2,278 | 10,317 | ||||||||||
| | | | | | | | | | | | | | |
Total liabilities assumed | $ | 1,329,288 | $ | 225,719 | $ | 49,082 | $ | 154,833 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total consideration paid | $ | 251,568 | $ | 58,076 | $ | 18,000 | $ | 35,000 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Summary of consideration: | ||||||||||||||
Cash paid | $ | — | $ | 58,076 | $ | 18,000 | $ | 35,000 | ||||||
PacWest common stock issued | 242,268 | — | — | — | ||||||||||
Cancellation of FCAL common stock owned by | ||||||||||||||
PacWest (at acquisition date fair value) | 9,300 | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 251,568 | $ | 58,076 | $ | 18,000 | $ | 35,000 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of pro forma results of operations | ' | |||||||||||||
Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(In thousands, except | ||||||||||||||
per share date) | ||||||||||||||
Pro forma revenues (net interest income plus noninterest income) | $ | 325,801 | $ | 370,115 | ||||||||||
Pro forma net earnings from continuing operations | $ | 52,640 | $ | 71,684 | ||||||||||
Pro forma net earnings from continuing operations per share: | ||||||||||||||
Basic | $ | 1.16 | $ | 1.58 | ||||||||||
Diluted | $ | 1.16 | $ | 1.58 |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||
Schedule of changes in the carrying amount of goodwill | ' | ||||||||||
Goodwill | |||||||||||
(In thousands) | |||||||||||
Balance, December 31, 2010 | $ | 47,301 | |||||||||
Adjustments to Los Padres goodwill, including resolution of matter with FDIC regarding settlement accounting for wholly-owned subsidiary of Los Padres | (8,160 | ) | |||||||||
| | | | | |||||||
Balance, December 31, 2011 | 39,141 | ||||||||||
Addition from the EQF acquisition | 19,033 | ||||||||||
Addition from the Celtic acquisition | 6,645 | ||||||||||
Addition from the APB acquisition | 15,047 | ||||||||||
| | | | | |||||||
Balance, December 31, 2012 | 79,866 | ||||||||||
Adjustment to APB goodwill | (193 | ) | |||||||||
Addition from the FCAL acquisition | 129,070 | ||||||||||
| | | | | |||||||
Balance, December 31, 2013 | $ | 208,743 | |||||||||
| | | | | |||||||
| | | | | |||||||
Schedule of the changes in CDI and CRI and the related accumulated amortization | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Gross amount of CDI and CRI: | |||||||||||
Balance, beginning of year | $ | 45,412 | $ | 67,100 | $ | 76,319 | |||||
Additions due to acquisitions | 7,927 | 4,924 | — | ||||||||
Fully amortized portion | (4,376 | ) | (20,746 | ) | (9,219 | ) | |||||
Removal due to branch sale | — | (5,866 | ) | — | |||||||
| | | | | | | | | | | |
Balance, end of year | 48,963 | 45,412 | 67,100 | ||||||||
| | | | | | | | | | | |
Accumulated Amortization: | |||||||||||
Balance, beginning of year | (30,689 | ) | (49,685 | ) | (50,476 | ) | |||||
Amortization | (5,402 | ) | (6,326 | ) | (8,428 | ) | |||||
Fully amortized portion | 4,376 | 20,746 | 9,219 | ||||||||
Removal due to branch sale | — | 4,576 | — | ||||||||
| | | | | | | | | | | |
Balance, end of year | (31,715 | ) | (30,689 | ) | (49,685 | ) | |||||
| | | | | | | | | | | |
Net CDI and CRI, end of year | $ | 17,248 | $ | 14,723 | $ | 17,415 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
Schedule of amortized cost, gross unrealized gains and losses, and carrying value of securities available-for-sale | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Security Type | Amortized | Gross | Gross | Carrying | ||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Government agency and government-sponsored enterprise pass through securities | $ | 691,944 | $ | 18,012 | $ | (2,768 | ) | $ | 707,188 | |||||||||||
Government agency and government-sponsored enterprise collateralized mortgage obligations | 197,069 | 388 | (4,584 | ) | 192,873 | |||||||||||||||
Covered private label collateralized mortgage obligations | 30,502 | 7,552 | (150 | ) | 37,904 | |||||||||||||||
Municipal securities | 459,182 | 1,749 | (24,273 | ) | 436,658 | |||||||||||||||
Corporate debt securities | 84,119 | 71 | (1,483 | ) | 82,707 | |||||||||||||||
Government-sponsored enterprise debt securities | 10,046 | — | (174 | ) | 9,872 | |||||||||||||||
Other securities | 27,654 | 2 | (113 | ) | 27,543 | |||||||||||||||
| | | | | | | | | | | | | | |||||||
Total securities available-for-sale | $ | 1,500,516 | $ | 27,774 | $ | (33,545 | ) | $ | 1,494,745 | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
December 31, 2012 | ||||||||||||||||||||
Security Type | Amortized | Gross | Gross | Carrying | ||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Government agency and government-sponsored enterprise pass through securities | $ | 774,677 | $ | 33,618 | $ | (453 | ) | $ | 807,842 | |||||||||||
Government agency and government-sponsored enterprise collateralized mortgage obligations | 99,956 | 1,870 | (132 | ) | 101,694 | |||||||||||||||
Covered private label collateralized mortgage obligations | 36,078 | 8,729 | (123 | ) | 44,684 | |||||||||||||||
Municipal securities | 339,547 | 10,445 | (1,951 | ) | 348,041 | |||||||||||||||
Corporate debt securities | 42,014 | 432 | (81 | ) | 42,365 | |||||||||||||||
Other securities | 6,389 | 4,370 | — | 10,759 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total securities available-for-sale | $ | 1,298,661 | $ | 59,464 | $ | (2,740 | ) | $ | 1,355,385 | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Schedule of carrying values and the gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
Security Type | Carrying | Gross | Carrying | Gross | Carrying | Gross | ||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Government agency and government-sponsored enterprise pass through securities | $ | 148,662 | $ | (2,767 | ) | $ | 32 | $ | (1 | ) | $ | 148,694 | $ | (2,768 | ) | |||||
Government agency and government-sponsored enterprise collateralized mortgage obligations | 179,938 | (4,486 | ) | 4,383 | (98 | ) | 184,321 | (4,584 | ) | |||||||||||
Covered private label collateralized mortgage obligations | 1,640 | (60 | ) | 617 | (90 | ) | 2,257 | (150 | ) | |||||||||||
Municipal securities | 337,208 | (24,273 | ) | — | — | 337,208 | (24,273 | ) | ||||||||||||
Corporate debt securities | 72,636 | (1,483 | ) | — | — | 72,636 | (1,483 | ) | ||||||||||||
Government-sponsored enterprise debt securities | 9,872 | (174 | ) | — | — | 9,872 | (174 | ) | ||||||||||||
Other securities | 23,969 | (113 | ) | — | — | 23,969 | (113 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 773,925 | $ | (33,356 | ) | $ | 5,032 | $ | (189 | ) | $ | 778,957 | $ | (33,545 | ) | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
Security Type | Carrying | Gross | Carrying | Gross | Carrying | Gross | ||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Government agency and government-sponsored enterprise pass through securities | $ | 67,299 | $ | (452 | ) | $ | 60 | $ | (1 | ) | $ | 67,359 | $ | (453 | ) | |||||
Government agency and government-sponsored enterprise collateralized mortgage obligations | 18,317 | (132 | ) | — | — | 18,317 | (132 | ) | ||||||||||||
Covered private label collateralized mortgage obligations | — | — | 1,692 | (123 | ) | 1,692 | (123 | ) | ||||||||||||
Municipal securities | 90,303 | (1,951 | ) | — | — | 90,303 | (1,951 | ) | ||||||||||||
Corporate debt securities | 16,819 | (81 | ) | — | — | 16,819 | (81 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 192,738 | $ | (2,616 | ) | $ | 1,752 | $ | (124 | ) | $ | 194,490 | $ | (2,740 | ) | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of contractual maturity distribution of the entity's available-for-sale securities portfolio based on amortized cost and carrying value | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Maturity | Amortized | Carrying | ||||||||||||||||||
Cost | Value | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Due in one year or less | $ | 5,775 | $ | 5,792 | ||||||||||||||||
Due after one year through five years | 24,597 | 24,749 | ||||||||||||||||||
Due after five years through ten years | 131,259 | 129,985 | ||||||||||||||||||
Due after ten years | 1,338,885 | 1,334,219 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total securities available-for-sale | $ | 1,500,516 | $ | 1,494,745 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of composition of our interest income on investment securities | ' | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Securities Interest by Type: | ||||||||||||||||||||
Taxable interest | $ | 23,542 | $ | 29,652 | $ | 33,390 | ||||||||||||||
Nontaxable interest | 11,777 | 5,559 | 1,222 | |||||||||||||||||
Dividend income | 1,604 | 446 | 173 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total interest income on investment securities | $ | 36,923 | $ | 35,657 | $ | 34,785 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
LOANS_AND_LEASES_Tables
LOANS AND LEASES (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
LOANS AND LEASES | ' | |||||||||||||||||||||||||
Summary of the composition of the entity's loan portfolio | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Non-PCI | PCI | Total | Non-PCI | PCI | Total | |||||||||||||||||||||
Loans and | Loans | Loans and | Loans | |||||||||||||||||||||||
Leases | Leases | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Non-covered loans and leases | $ | 3,844,591 | $ | 20,326 | $ | 3,864,917 | $ | 3,049,505 | $ | — | $ | 3,049,505 | ||||||||||||||
Covered loans | 85,948 | 362,470 | 448,418 | 25,442 | 517,885 | 543,327 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total gross loans and leases | 3,930,539 | 382,796 | 4,313,335 | 3,074,947 | 517,885 | 3,592,832 | ||||||||||||||||||||
Unearned income | (983 | ) | — | (983 | ) | (2,535 | ) | — | (2,535 | ) | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total loans and leases, net of unearned income | 3,929,556 | 382,796 | 4,312,352 | 3,072,412 | 517,885 | 3,590,297 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Non-covered loans and leases | (60,241 | ) | — | (60,241 | ) | (65,899 | ) | — | (65,899 | ) | ||||||||||||||||
Covered loans | — | (21,793 | ) | (21,793 | ) | — | (26,069 | ) | (26,069 | ) | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total allowance for loan and lease losses | (60,241 | ) | (21,793 | ) | (82,034 | ) | (65,899 | ) | (26,069 | ) | (91,968 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total net loans and leases | $ | 3,869,315 | $ | 361,003 | $ | 4,230,318 | $ | 3,006,513 | $ | 491,816 | $ | 3,498,329 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Summary of activity in the allowance for credit losses on non-covered loans and leases | ' | |||||||||||||||||||||||||
Components | ||||||||||||||||||||||||||
Non-PCI | Non-PCI | Total | ||||||||||||||||||||||||
Allowance for | Reserve for | Non-PCI | ||||||||||||||||||||||||
Loan and | Unfunded | Allowance for | ||||||||||||||||||||||||
Lease Losses | Loan | Credit | ||||||||||||||||||||||||
Commitments | Losses | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 98,653 | $ | 5,675 | $ | 104,328 | ||||||||||||||||||||
Charge-offs | (28,560 | ) | — | (28,560 | ) | |||||||||||||||||||||
Recoveries | 4,715 | — | 4,715 | |||||||||||||||||||||||
Provision | 10,505 | 2,795 | 13,300 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance, December 31, 2011 | 85,313 | 8,470 | 93,783 | |||||||||||||||||||||||
Charge-offs | (13,070 | ) | — | (13,070 | ) | |||||||||||||||||||||
Recoveries | 3,406 | — | 3,406 | |||||||||||||||||||||||
Negative provision | (9,750 | ) | (2,250 | ) | (12,000 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance, December 31, 2012 | 65,899 | 6,220 | 72,119 | |||||||||||||||||||||||
Charge-offs | (11,159 | ) | — | (11,159 | ) | |||||||||||||||||||||
Recoveries | 6,856 | — | 6,856 | |||||||||||||||||||||||
(Negative provision) provision | (1,355 | ) | 1,355 | — | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance, December 31, 2013 | $ | 60,241 | $ | 7,575 | $ | 67,816 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Summary of the activity in the allowance for loan and lease losses on Non-PCI loans and leases and PCI loans by portfolio segment | ' | |||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Real | Real | Commercial | Leases | Consumer | Total | Total | Total | |||||||||||||||||||
Estate | Estate | Non-PCI | PCI | |||||||||||||||||||||||
Mortgage | Construction | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 38,700 | $ | 3,221 | $ | 20,759 | $ | 1,493 | $ | 1,726 | $ | 65,899 | $ | 26,069 | $ | 91,968 | ||||||||||
Charge-offs | (4,552 | ) | — | (6,295 | ) | (114 | ) | (198 | ) | (11,159 | ) | (66 | ) | (11,225 | ) | |||||||||||
Recoveries | 2,507 | 1,654 | 2,621 | — | 74 | 6,856 | — | 6,856 | ||||||||||||||||||
Provision (negative provision) | (10,577 | ) | (577 | ) | 6,609 | 1,848 | 1,342 | (1,355 | ) | (4,210 | ) | (5,565 | ) | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 26,078 | $ | 4,298 | $ | 23,694 | $ | 3,227 | $ | 2,944 | $ | 60,241 | $ | 21,793 | $ | 82,034 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Amount of the allowance applicable to loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,188 | $ | 169 | $ | 5,003 | $ | — | $ | 240 | $ | 7,600 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | $ | 23,890 | $ | 4,129 | $ | 18,691 | $ | 3,227 | $ | 2,704 | $ | 52,641 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | $ | 21,793 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans and Leases: | ||||||||||||||||||||||||||
Ending balance | $ | 2,424,864 | $ | 209,090 | $ | 972,007 | $ | 269,769 | $ | 54,809 | $ | 3,930,539 | $ | 382,796 | $ | 4,313,335 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
The ending balance of the loan and lease portfolio is composed of loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 62,276 | $ | 7,512 | $ | 17,300 | $ | 632 | $ | 702 | $ | 88,422 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | $ | 2,362,588 | $ | 201,578 | $ | 954,707 | $ | 269,137 | $ | 54,107 | $ | 3,842,117 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | $ | 382,796 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Real | Real | Commercial | Leases | Consumer | Total | Total | Total | |||||||||||||||||||
Estate | Estate | Non-PCI | PCI | |||||||||||||||||||||||
Mortgage | Construction | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 50,205 | $ | 8,697 | $ | 23,643 | $ | — | $ | 2,768 | $ | 85,313 | $ | 31,275 | $ | 116,588 | ||||||||||
Charge-offs | (7,680 | ) | (492 | ) | (4,580 | ) | (28 | ) | (290 | ) | (13,070 | ) | (4,387 | ) | (17,457 | ) | ||||||||||
Recoveries | 1,598 | 49 | 1,622 | — | 137 | 3,406 | — | 3,406 | ||||||||||||||||||
Provision (negative provision) | (5,423 | ) | (5,033 | ) | 74 | 1,521 | (889 | ) | (9,750 | ) | (819 | ) | (10,569 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 38,700 | $ | 3,221 | $ | 20,759 | $ | 1,493 | $ | 1,726 | $ | 65,899 | $ | 26,069 | $ | 91,968 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Amount of the allowance applicable to loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,827 | $ | 371 | $ | 4,525 | $ | — | $ | 265 | $ | 12,988 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | $ | 30,873 | $ | 2,850 | $ | 16,234 | $ | 1,493 | $ | 1,461 | $ | 52,911 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | $ | 26,069 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans and Leases: | ||||||||||||||||||||||||||
Ending balance | $ | 1,940,153 | $ | 129,959 | $ | 807,455 | $ | 174,373 | $ | 23,007 | $ | 3,074,947 | $ | 517,885 | $ | 3,592,832 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
The ending balance of the loan and lease portfolio is composed of loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 107,198 | $ | 25,450 | $ | 14,530 | $ | 244 | $ | 628 | $ | 148,050 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | $ | 1,832,955 | $ | 104,509 | $ | 792,925 | $ | 174,129 | $ | 22,379 | $ | 2,926,897 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | $ | 517,885 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Composition of loan portfolio | ' | |||||||||||||||||||||||||
Schedule of composition of loans and leases by portfolio segment | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Non-PCI | PCI | Total | Non-PCI | PCI | Total | |||||||||||||||||||||
Loans and | Loans | Loans and | Loans | |||||||||||||||||||||||
Leases | Leases | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Non-Covered Loans and Leases | ||||||||||||||||||||||||||
Real estate mortgage | $ | 2,359,125 | $ | 18,900 | $ | 2,378,025 | $ | 1,919,310 | $ | — | $ | 1,919,310 | ||||||||||||||
Real estate construction | 200,332 | 1,391 | 201,723 | 129,959 | — | 129,959 | ||||||||||||||||||||
Commercial | 963,152 | — | 963,152 | 803,342 | — | 803,342 | ||||||||||||||||||||
Leases | 269,769 | — | 269,769 | 174,373 | — | 174,373 | ||||||||||||||||||||
Consumer | 52,213 | 35 | 52,248 | 22,521 | — | 22,521 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total gross non-covered loans and leases | $ | 3,844,591 | $ | 20,326 | $ | 3,864,917 | $ | 3,049,505 | $ | — | $ | 3,049,505 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Covered Loans | ||||||||||||||||||||||||||
Real estate mortgage | $ | 65,739 | $ | 352,234 | $ | 417,973 | $ | 20,843 | $ | 484,057 | $ | 504,900 | ||||||||||||||
Real estate construction | 8,758 | 9,036 | 17,794 | — | 24,645 | 24,645 | ||||||||||||||||||||
Commercial | 8,855 | 974 | 9,829 | 4,113 | 9,071 | 13,184 | ||||||||||||||||||||
Consumer | 2,596 | 226 | 2,822 | 486 | 112 | 598 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total gross covered loans | $ | 85,948 | $ | 362,470 | $ | 448,418 | $ | 25,442 | $ | 517,885 | $ | 543,327 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Loans and Leases | ||||||||||||||||||||||||||
Real estate mortgage | $ | 2,424,864 | $ | 371,134 | $ | 2,795,998 | $ | 1,940,153 | $ | 484,057 | $ | 2,424,210 | ||||||||||||||
Real estate construction | 209,090 | 10,427 | 219,517 | 129,959 | 24,645 | 154,604 | ||||||||||||||||||||
Commercial | 972,007 | 974 | 972,981 | 807,455 | 9,071 | 816,526 | ||||||||||||||||||||
Leases | 269,769 | — | 269,769 | 174,373 | — | 174,373 | ||||||||||||||||||||
Consumer | 54,809 | 261 | 55,070 | 23,007 | 112 | 23,119 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total gross loans and leases | $ | 3,930,539 | $ | 382,796 | $ | 4,313,335 | $ | 3,074,947 | $ | 517,885 | $ | 3,592,832 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Schedule of aging analysis of Non-PCI loans and leases by portfolio segment and class | ' | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater | Total | Current | Total | |||||||||||||||||||||
Past Due | Past Due | Than | Past Due | |||||||||||||||||||||||
90 Days | ||||||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | — | $ | — | $ | — | $ | — | $ | 180,553 | $ | 180,553 | ||||||||||||||
SBA 504 | 2,564 | — | — | 2,564 | 42,602 | 45,166 | ||||||||||||||||||||
Other | 12,466 | 560 | 2,406 | 15,432 | 2,183,713 | 2,199,145 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate mortgage | 15,030 | 560 | 2,406 | 17,996 | 2,406,868 | 2,424,864 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | — | — | — | — | 58,881 | 58,881 | ||||||||||||||||||||
Commercial | — | — | 2,013 | 2,013 | 148,196 | 150,209 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate construction | — | — | 2,013 | 2,013 | 207,077 | 209,090 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 66 | 407 | 259 | 732 | 586,454 | 587,186 | ||||||||||||||||||||
Unsecured | 83 | — | 68 | 151 | 153,601 | 153,752 | ||||||||||||||||||||
Asset-based | — | — | — | — | 202,428 | 202,428 | ||||||||||||||||||||
SBA 7(a) | 1,173 | 597 | 243 | 2,013 | 26,628 | 28,641 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total commercial | 1,322 | 1,004 | 570 | 2,896 | 969,111 | 972,007 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Leases | 2,530 | 132 | 244 | 2,906 | 266,863 | 269,769 | ||||||||||||||||||||
Consumer | 3,315 | 4 | — | 3,319 | 51,490 | 54,809 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 22,197 | $ | 1,700 | $ | 5,233 | $ | 29,130 | $ | 3,901,409 | $ | 3,930,539 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
December 31, 2012 | ||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater | Total | Current | Total | |||||||||||||||||||||
Past Due | Past Due | Than | Past Due | |||||||||||||||||||||||
90 Days | ||||||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | — | $ | — | $ | — | $ | — | $ | 181,144 | $ | 181,144 | ||||||||||||||
SBA 504 | 955 | — | 1,727 | 2,682 | 51,476 | 54,158 | ||||||||||||||||||||
Other | 4,098 | 54 | 3,271 | 7,423 | 1,697,428 | 1,704,851 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate mortgage | 5,053 | 54 | 4,998 | 10,105 | 1,930,048 | 1,940,153 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | — | — | — | — | 48,629 | 48,629 | ||||||||||||||||||||
Commercial | — | — | 1,245 | 1,245 | 80,085 | 81,330 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate construction | — | — | 1,245 | 1,245 | 128,714 | 129,959 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 964 | 161 | 872 | 1,997 | 460,128 | 462,125 | ||||||||||||||||||||
Unsecured | 3 | 135 | 230 | 368 | 80,207 | 80,575 | ||||||||||||||||||||
Asset-based | — | — | 176 | 176 | 239,254 | 239,430 | ||||||||||||||||||||
SBA 7(a) | 281 | 547 | 1,271 | 2,099 | 23,226 | 25,325 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total commercial | 1,248 | 843 | 2,549 | 4,640 | 802,815 | 807,455 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Leases | 225 | 132 | 244 | 601 | 173,772 | 174,373 | ||||||||||||||||||||
Consumer | 23 | 1 | — | 24 | 22,983 | 23,007 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 6,549 | $ | 1,030 | $ | 9,036 | $ | 16,615 | $ | 3,058,332 | $ | 3,074,947 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Schedule of Non-PCI nonaccrual and performing loans and leases by portfolio segment and class | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Nonaccrual | Performing | Total | Nonaccrual | Performing | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 6,723 | $ | 173,830 | $ | 180,553 | $ | 6,908 | $ | 174,236 | $ | 181,144 | ||||||||||||||
SBA 504 | 2,602 | 42,564 | 45,166 | 2,982 | 51,176 | 54,158 | ||||||||||||||||||||
Other | 18,648 | 2,180,497 | 2,199,145 | 16,585 | 1,688,266 | 1,704,851 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate mortgage | 27,973 | 2,396,891 | 2,424,864 | 26,475 | 1,913,678 | 1,940,153 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 389 | 58,492 | 58,881 | 1,057 | 47,572 | 48,629 | ||||||||||||||||||||
Commercial | 2,830 | 147,379 | 150,209 | 2,715 | 78,615 | 81,330 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate construction | 3,219 | 205,871 | 209,090 | 3,772 | 126,187 | 129,959 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 9,991 | 577,195 | 587,186 | 4,462 | 457,663 | 462,125 | ||||||||||||||||||||
Unsecured | 458 | 153,294 | 153,752 | 2,027 | 78,548 | 80,575 | ||||||||||||||||||||
Asset-based | 1,070 | 201,358 | 202,428 | 176 | 239,254 | 239,430 | ||||||||||||||||||||
SBA 7(a) | 3,037 | 25,604 | 28,641 | 4,181 | 21,144 | 25,325 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total commercial | 14,556 | 957,451 | 972,007 | 10,846 | 796,609 | 807,455 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Leases | 632 | 269,137 | 269,769 | 244 | 174,129 | 174,373 | ||||||||||||||||||||
Consumer | 394 | 54,415 | 54,809 | 425 | 22,582 | 23,007 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 46,774 | $ | 3,883,765 | $ | 3,930,539 | $ | 41,762 | $ | 3,033,185 | $ | 3,074,947 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Schedule of composition of impaired loans and leases | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Nonaccrual | Performing | Total | Nonaccrual | Performing | Total | |||||||||||||||||||||
Loans/Leases | Restructured | Impaired | Loans/Leases | Restructured | Impaired | |||||||||||||||||||||
Loans | Loans/Leases | Loans | Loans/Leases | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage | $ | 27,973 | $ | 34,303 | $ | 62,276 | $ | 26,475 | $ | 80,723 | $ | 107,198 | ||||||||||||||
Real estate construction | 3,219 | 4,293 | 7,512 | 3,772 | 21,678 | 25,450 | ||||||||||||||||||||
Commercial | 14,556 | 2,744 | 17,300 | 10,846 | 3,684 | 14,530 | ||||||||||||||||||||
Leases | 632 | — | 632 | 244 | — | 244 | ||||||||||||||||||||
Consumer | 394 | 308 | 702 | 425 | 203 | 628 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total | $ | 46,774 | $ | 41,648 | $ | 88,422 | $ | 41,762 | $ | 106,288 | $ | 148,050 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Schedule of information regarding Non-PCI impaired loans and leases by portfolio segment and class | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Recorded | Unpaid | Related | |||||||||||||||||||||
Investment(1) | Principal | Allowance | Investment(1) | Principal | Allowance | |||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
With An Allowance Recorded: | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 5,717 | $ | 6,215 | $ | 198 | $ | 8,954 | $ | 9,640 | $ | 2,396 | ||||||||||||||
SBA 504 | 1,642 | 1,643 | 230 | 1,676 | 1,676 | 324 | ||||||||||||||||||||
Other | 15,937 | 16,571 | 1,760 | 58,364 | 60,262 | 5,107 | ||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 778 | 778 | 168 | 1,303 | 1,330 | 165 | ||||||||||||||||||||
Other | 1,250 | 1,250 | 1 | 6,723 | 6,723 | 206 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 4,377 | 4,692 | 4,270 | 2,477 | 2,731 | 1,865 | ||||||||||||||||||||
Unsecured | 801 | 829 | 375 | 2,396 | 3,121 | 2,234 | ||||||||||||||||||||
Asset-based | 1,070 | 1,070 | 180 | — | — | — | ||||||||||||||||||||
SBA 7(a) | 1,136 | 1,136 | 178 | 2,871 | 3,616 | 426 | ||||||||||||||||||||
Consumer | 424 | 471 | 240 | 466 | 506 | 265 | ||||||||||||||||||||
With No Related Allowance Recorded: | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 3,013 | $ | 3,385 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
SBA 504 | 2,602 | 3,646 | — | 2,982 | 3,755 | — | ||||||||||||||||||||
Other | 33,365 | 46,062 | — | 35,222 | 39,503 | — | ||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Other | 5,484 | 9,923 | — | 17,424 | 21,085 | — | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 6,700 | 9,924 | — | 3,657 | 4,994 | — | ||||||||||||||||||||
Unsecured | 179 | 247 | — | 156 | 163 | — | ||||||||||||||||||||
Asset-based | — | — | — | 176 | 176 | — | ||||||||||||||||||||
SBA 7(a) | 3,037 | 4,945 | — | 2,797 | 4,057 | — | ||||||||||||||||||||
Leases | 632 | 632 | — | 244 | 244 | — | ||||||||||||||||||||
Consumer | 278 | 394 | — | 162 | 233 | — | ||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Real estate mortgage | $ | 62,276 | $ | 77,522 | $ | 2,188 | $ | 107,198 | $ | 114,836 | $ | 7,827 | ||||||||||||||
Real estate construction | 7,512 | 11,951 | 169 | 25,450 | 29,138 | 371 | ||||||||||||||||||||
Commercial | 17,300 | 22,843 | 5,003 | 14,530 | 18,858 | 4,525 | ||||||||||||||||||||
Leases | 632 | 632 | — | 244 | 244 | — | ||||||||||||||||||||
Consumer | 702 | 865 | 240 | 628 | 739 | 265 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 88,422 | $ | 113,813 | $ | 7,600 | $ | 148,050 | $ | 163,815 | $ | 12,988 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
-1 | ||||||||||||||||||||||||||
The recorded investment in a loan reflects the contractual amount due from the borrower reduced by charge-offs, any participation amount sold to a third party, interest payments on nonaccrual loans applied to principal, and purchase discounts. | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Weighted | Interest | Weighted | Interest | Weighted | Interest | |||||||||||||||||||||
Average | Income | Average | Income | Average | Income | |||||||||||||||||||||
Recorded | Recognized | Recorded | Recognized | Recorded | Recognized | |||||||||||||||||||||
Investment(1) | Investment(1) | Investment(1) | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
With An Allowance Recorded: | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 5,717 | $ | 81 | $ | 8,954 | $ | 80 | $ | 17,399 | $ | 622 | ||||||||||||||
SBA 504 | 1,642 | 90 | 827 | 41 | 895 | 21 | ||||||||||||||||||||
Other | 13,205 | 509 | 51,441 | 2,070 | 42,973 | 1,623 | ||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 778 | 14 | 1,303 | 11 | 2,520 | 66 | ||||||||||||||||||||
Other | 1,250 | 63 | 6,723 | 231 | 5,375 | 113 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 3,281 | 29 | 2,219 | 48 | 4,745 | 66 | ||||||||||||||||||||
Unsecured | 772 | 33 | 2,273 | 20 | 2,767 | 24 | ||||||||||||||||||||
Asset-based | 569 | — | — | — | — | — | ||||||||||||||||||||
SBA 7(a) | 1,136 | 56 | 2,593 | 53 | 1,761 | 86 | ||||||||||||||||||||
Consumer | 425 | 10 | 389 | 7 | 291 | — | ||||||||||||||||||||
With No Related Allowance Recorded: | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 3,013 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
SBA 504 | 2,601 | — | 1,472 | — | 1,916 | — | ||||||||||||||||||||
Other | 27,912 | 1,060 | 29,316 | 1,523 | 13,827 | 678 | ||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | — | — | — | — | 611 | — | ||||||||||||||||||||
Other | 4,866 | 11 | 17,424 | 589 | 14,904 | 375 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 3,410 | 20 | 1,657 | 27 | 1,584 | — | ||||||||||||||||||||
Unsecured | 157 | — | 148 | — | 499 | — | ||||||||||||||||||||
Asset-based | — | — | 132 | — | 14 | — | ||||||||||||||||||||
SBA 7(a) | 2,571 | — | 2,601 | 24 | 5,753 | 15 | ||||||||||||||||||||
Leases | 245 | — | 224 | — | — | — | ||||||||||||||||||||
Consumer | 161 | — | 136 | — | 234 | 27 | ||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Real estate mortgage | $ | 54,090 | $ | 1,740 | $ | 92,010 | $ | 3,714 | $ | 77,010 | $ | 2,944 | ||||||||||||||
Real estate construction | 6,894 | 88 | 25,450 | 831 | 23,410 | 554 | ||||||||||||||||||||
Commercial | 11,896 | 138 | 11,623 | 172 | 17,123 | 191 | ||||||||||||||||||||
Leases | 245 | — | 224 | — | — | — | ||||||||||||||||||||
Consumer | 586 | 10 | 525 | 7 | 525 | 27 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 73,711 | $ | 1,976 | $ | 129,832 | $ | 4,724 | $ | 118,068 | $ | 3,716 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
-1 | ||||||||||||||||||||||||||
For the loans and leases reported as impaired at December 31, 2013, 2012, and 2011, amounts were calculated based on the period of time such loans and leases were impaired during the reporting period. | ||||||||||||||||||||||||||
Schedule of Non-PCI new troubled debt restructurings and defaulted troubled debt restructurings | ' | |||||||||||||||||||||||||
Troubled Debt Restructurings | Troubled Debt | |||||||||||||||||||||||||
Restructurings | ||||||||||||||||||||||||||
That Subsequently | ||||||||||||||||||||||||||
Pre- | Post- | Defaulted(1) | ||||||||||||||||||||||||
Modification | Modification | |||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||
Number | Investment | Investment | Number | Recorded | ||||||||||||||||||||||
of | of | Investment | ||||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Other | 14 | $ | 16,223 | $ | 16,223 | 2 | $ | 1,844 | ||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 1 | 390 | 390 | — | — | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 11 | 5,618 | 5,618 | 1 | 419 | |||||||||||||||||||||
Unsecured | 5 | 521 | 521 | 2 | 66 | |||||||||||||||||||||
Asset-based | 1 | 2,032 | 2,032 | 1 | 1,070 | |||||||||||||||||||||
SBA 7(a) | 4 | 137 | 137 | — | — | |||||||||||||||||||||
Consumer | 2 | 125 | 125 | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Total | 38 | $ | 25,046 | $ | 25,046 | 6 | $ | 3,399 | -2 | |||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
SBA 504 | 2 | $ | 1,680 | $ | 1,680 | — | $ | — | ||||||||||||||||||
Other | 8 | 14,861 | 13,840 | — | — | |||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Other | 3 | 6,919 | 6,919 | — | — | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 7 | 1,652 | 1,652 | 2 | 458 | |||||||||||||||||||||
Unsecured | 5 | 317 | 317 | — | — | |||||||||||||||||||||
SBA 7(a) | 4 | 1,216 | 1,216 | 1 | 873 | |||||||||||||||||||||
Consumer | 1 | 206 | 206 | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Total | 30 | $ | 26,851 | $ | 25,830 | 3 | $ | 1,331 | -3 | |||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | 1 | $ | 2,086 | $ | 2,086 | — | $ | — | ||||||||||||||||||
SBA 504 | 1 | 619 | 619 | — | — | |||||||||||||||||||||
Other | 35 | 56,201 | 56,008 | 3 | 2,914 | |||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||
Other | 6 | 14,906 | 14,906 | 1 | 1,492 | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 15 | 2,780 | 2,780 | — | — | |||||||||||||||||||||
Unsecured | 4 | 581 | 581 | — | — | |||||||||||||||||||||
SBA 7(a) | 15 | 3,515 | 3,515 | 3 | 59 | |||||||||||||||||||||
Consumer | 1 | 144 | 144 | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
Total | 78 | $ | 80,832 | $ | 80,639 | 7 | $ | 4,465 | -4 | |||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||||||||
The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Represents the balance at December 31, 2013 and is net of charge-offs of $1.6 million. | ||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||
Represents the balance at December 31, 2012 and is net of charge-offs of $921,000. | ||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||
Represents the balance at December 31, 2011 and is net of charge-offs of $4.5 million. | ||||||||||||||||||||||||||
Schedule of accretable yield on the purchased credit impaired loans acquired in the FCAL acquisition | ' | |||||||||||||||||||||||||
May 31, 2013 | ||||||||||||||||||||||||||
Accretable Yield | ||||||||||||||||||||||||||
Covered | Non-Covered | Total | ||||||||||||||||||||||||
PCI Loans | PCI Loans | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Undiscounted contractual cash flows | $ | 42,881 | $ | 41,936 | $ | 84,817 | ||||||||||||||||||||
Undiscounted cash flows not expected to be collected (nonaccretable difference) | (16,050 | ) | (16,337 | ) | (32,387 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Undiscounted cash flows expected to be collected | 26,831 | 25,599 | 52,430 | |||||||||||||||||||||||
Estimated fair value of loans acquired | (24,341 | ) | (19,805 | ) | (44,146 | ) | ||||||||||||||||||||
Acquired accrued interest receivable | (66 | ) | (122 | ) | (188 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Accretable yield | $ | 2,424 | $ | 5,672 | $ | 8,096 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Schedule of changes in the carrying amount of PCI loans and accretable yield on those loans | ' | |||||||||||||||||||||||||
Covered | Non-Covered | |||||||||||||||||||||||||
PCI Loans | PCI Loans | |||||||||||||||||||||||||
Carrying | Accretable | Carrying | Accretable | |||||||||||||||||||||||
Amount | Yield | Amount | Yield | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 879,486 | $ | (290,665 | ) | $ | — | $ | — | |||||||||||||||||
Accretion | 65,282 | 65,282 | — | — | ||||||||||||||||||||||
Payments received | (257,440 | ) | — | — | — | |||||||||||||||||||||
Increase in expected cash flows, net | — | (33,882 | ) | — | — | |||||||||||||||||||||
Provision for credit losses | (13,270 | ) | — | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance, December 31, 2011 | 674,058 | (259,265 | ) | — | — | |||||||||||||||||||||
Accretion | 49,562 | 49,562 | — | — | ||||||||||||||||||||||
Payments received | (232,623 | ) | — | — | — | |||||||||||||||||||||
Decrease in expected cash flows, net | — | 13,681 | — | — | ||||||||||||||||||||||
Negative provision for credit losses | 819 | — | — | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance, December 31, 2012 | 491,816 | (196,022 | ) | — | — | |||||||||||||||||||||
Addition from the FCAL acquisition | 24,341 | (2,424 | ) | 19,805 | (5,672 | ) | ||||||||||||||||||||
Accretion | 44,304 | 44,304 | 2,376 | 2,376 | ||||||||||||||||||||||
Payments received | (223,994 | ) | — | (1,855 | ) | — | ||||||||||||||||||||
Decrease (increase) in expected cash flows, net | — | 20,494 | — | (2,624 | ) | |||||||||||||||||||||
Negative provision for credit losses | 4,210 | — | — | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance, December 31, 2013 | $ | 340,677 | $ | (133,648 | ) | $ | 20,326 | $ | (5,920 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Non-PCI Loans | ' | |||||||||||||||||||||||||
Composition of loan portfolio | ' | |||||||||||||||||||||||||
Schedule of credit risk rating categories for loans and leases by portfolio segment and class | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Nonclassified | Classified | Total | Nonclassified | Classified | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||
Hospitality | $ | 168,216 | $ | 12,337 | $ | 180,553 | $ | 168,489 | $ | 12,655 | $ | 181,144 | ||||||||||||||
SBA 504 | 39,869 | 5,297 | 45,166 | 48,372 | 5,786 | 54,158 | ||||||||||||||||||||
Other | 2,134,866 | 64,279 | 2,199,145 | 1,655,086 | 49,765 | 1,704,851 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate mortgage | 2,342,951 | 81,913 | 2,424,864 | 1,871,947 | 68,206 | 1,940,153 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Real estate construction: | ||||||||||||||||||||||||||
Residential | 58,131 | 750 | 58,881 | 46,591 | 2,038 | 48,629 | ||||||||||||||||||||
Commercial | 143,918 | 6,291 | 150,209 | 77,503 | 3,827 | 81,330 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total real estate construction | 202,049 | 7,041 | 209,090 | 124,094 | 5,865 | 129,959 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Commercial: | ||||||||||||||||||||||||||
Collateralized | 568,348 | 18,838 | 587,186 | 447,323 | 14,802 | 462,125 | ||||||||||||||||||||
Unsecured | 151,896 | 1,856 | 153,752 | 77,670 | 2,905 | 80,575 | ||||||||||||||||||||
Asset-based | 195,569 | 6,859 | 202,428 | 235,075 | 4,355 | 239,430 | ||||||||||||||||||||
SBA 7(a) | 22,880 | 5,761 | 28,641 | 18,888 | 6,437 | 25,325 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total commercial | 938,693 | 33,314 | 972,007 | 778,956 | 28,499 | 807,455 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Leases | 269,137 | 632 | 269,769 | 174,129 | 244 | 174,373 | ||||||||||||||||||||
Consumer | 50,398 | 4,411 | 54,809 | 21,767 | 1,240 | 23,007 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total Non-PCI loans and leases | $ | 3,803,228 | $ | 127,311 | $ | 3,930,539 | $ | 2,970,893 | $ | 104,054 | $ | 3,074,947 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
PCI Loans | ' | |||||||||||||||||||||||||
Composition of loan portfolio | ' | |||||||||||||||||||||||||
Schedule of composition of loans and leases by portfolio segment | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Amount | % of | Amount | % of | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Real estate mortgage | $ | 412,791 | 96 | % | $ | 534,378 | 94 | % | ||||||||||||||||||
Real estate construction | 12,015 | 3 | 23,220 | 4 | ||||||||||||||||||||||
Commercial | 3,021 | 1 | 11,130 | 2 | ||||||||||||||||||||||
Consumer | 424 | — | 108 | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Total outstanding PCI loans | 428,251 | 100 | % | 568,836 | 100 | % | ||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Less: | ||||||||||||||||||||||||||
Discount | (45,455 | ) | (50,951 | ) | ||||||||||||||||||||||
Allowance for loan losses | (21,793 | ) | (26,069 | ) | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Total net PCI loans | $ | 361,003 | $ | 491,816 | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Schedule of credit risk rating categories for loans and leases by portfolio segment and class | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Nonclassified | Classified | Total | Nonclassified | Classified | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Real estate mortgage | $ | 216,092 | $ | 155,042 | $ | 371,134 | $ | 331,341 | $ | 152,716 | $ | 484,057 | ||||||||||||||
Real estate construction | 4,399 | 6,028 | 10,427 | 6,311 | 18,334 | 24,645 | ||||||||||||||||||||
Commercial | 569 | 405 | 974 | 3,420 | 5,651 | 9,071 | ||||||||||||||||||||
Consumer | — | 261 | 261 | — | 112 | 112 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Total PCI loans, net | $ | 221,060 | $ | 161,736 | $ | 382,796 | $ | 341,072 | $ | 176,813 | $ | 517,885 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
OTHER_REAL_ESTATE_OWNED_OREO_T
OTHER REAL ESTATE OWNED (OREO) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
OTHER REAL ESTATE OWNED (OREO) | ' | |||||||||||||||||||
Summary of OREO by property type | ' | |||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Property Type | Non-Covered | Covered | Total | Non-Covered | Covered | Total | ||||||||||||||
OREO | OREO | OREO | OREO | OREO | OREO | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Commercial real estate | $ | 10,672 | $ | 5,081 | $ | 15,753 | $ | 1,684 | $ | 11,635 | $ | 13,319 | ||||||||
Construction and land development | 31,950 | 3,113 | 35,063 | 31,888 | 6,708 | 38,596 | ||||||||||||||
Multi-family | — | 835 | 835 | — | 4,239 | 4,239 | ||||||||||||||
Single family residence | 179 | 7 | 186 | — | 260 | 260 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total OREO, net | $ | 42,801 | $ | 9,036 | $ | 51,837 | $ | 33,572 | $ | 22,842 | $ | 56,414 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of roll forward of OREO, net of the valuation allowance | ' | |||||||||||||||||||
Non-Covered | Covered | Total | ||||||||||||||||||
OREO | OREO | OREO | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
OREO Activity: | ||||||||||||||||||||
Balance, December 31, 2010 | $ | 25,598 | $ | 55,816 | $ | 81,414 | ||||||||||||||
Foreclosures | 34,743 | 33,940 | 68,683 | |||||||||||||||||
Payments to third parties(1) | 1,619 | 10 | 1,629 | |||||||||||||||||
Provision for losses | (5,026 | ) | (11,968 | ) | (16,994 | ) | ||||||||||||||
Reductions related to sales | (8,522 | ) | (44,292 | ) | (52,814 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2011 | 48,412 | 33,506 | 81,918 | |||||||||||||||||
Addition from the APB acquisition | 1,561 | — | 1,561 | |||||||||||||||||
Foreclosures | 4,223 | 35,984 | 40,207 | |||||||||||||||||
Payments to third parties(1) | 889 | — | 889 | |||||||||||||||||
Provision for losses | (3,820 | ) | (10,513 | ) | (14,333 | ) | ||||||||||||||
Reductions related to sales | (17,693 | ) | (36,135 | ) | (53,828 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2012 | 33,572 | 22,842 | 56,414 | |||||||||||||||||
Addition from the FCAL acquisition | 10,092 | 3,680 | 13,772 | |||||||||||||||||
Foreclosures | 7,891 | 7,525 | 15,416 | |||||||||||||||||
Payments to third parties(1) | 39 | — | 39 | |||||||||||||||||
Provision for losses | (818 | ) | (1,697 | ) | (2,515 | ) | ||||||||||||||
Reductions related to sales | (7,975 | ) | (23,314 | ) | (31,289 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2013 | $ | 42,801 | $ | 9,036 | $ | 51,837 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
Represents amounts due to participants and for guarantees, property taxes or other prior lien positions. | ||||||||||||||||||||
Schedule of roll forward of OREO valuation allowance | ' | |||||||||||||||||||
Non-Covered | Covered | Total | ||||||||||||||||||
OREO | OREO | OREO | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
OREO Valuation Allowance Activity: | ||||||||||||||||||||
Balance, December 31, 2010 | $ | 13,831 | $ | 3,982 | $ | 17,813 | ||||||||||||||
Provision for losses | 5,026 | 11,968 | 16,994 | |||||||||||||||||
Selling costs(1) | — | 2,527 | 2,527 | |||||||||||||||||
Due from the SBA | 108 | — | 108 | |||||||||||||||||
Reductions related to sales | (9,431 | ) | (7,436 | ) | (16,867 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2011 | 9,534 | 11,041 | 20,575 | |||||||||||||||||
Provision for losses | 3,820 | 10,513 | 14,333 | |||||||||||||||||
Selling costs(1) | — | 876 | 876 | |||||||||||||||||
Reductions related to sales | (7,936 | ) | (11,167 | ) | (19,103 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2012 | 5,418 | 11,263 | 16,681 | |||||||||||||||||
Provision for losses | 818 | 1,697 | 2,515 | |||||||||||||||||
Reductions related to sales | (766 | ) | (7,116 | ) | (7,882 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance, December 31, 2013 | $ | 5,470 | $ | 5,844 | $ | 11,314 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
During 2011, the FDIC changed its methodology such that selling costs are reimbursed at the time of sale rather than at the time of foreclosure. Such amounts will be realized when the related OREO parcels are sold. | ||||||||||||||||||||
FDIC_LOSS_SHARING_ASSET_Tables
FDIC LOSS SHARING ASSET (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
FDIC LOSS SHARING ASSET | ' | ||||||||||
Schedule of changes in the FDIC loss sharing asset | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
FDIC loss sharing asset, beginning of year | $ | 57,475 | $ | 95,187 | |||||||
Addition from the FCAL acquisition | 17,241 | — | |||||||||
FDIC share of additional losses, net of recoveries | 4,969 | 6,169 | |||||||||
Cash received from FDIC | (7,332 | ) | (33,223 | ) | |||||||
Net amortization | (26,829 | ) | (10,658 | ) | |||||||
| | | | | | | | ||||
FDIC loss sharing asset, end of year | $ | 45,524 | $ | 57,475 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of the composition of the FDIC loss sharing asset and true-up liability | ' | ||||||||||
December 31, 2013 | |||||||||||
Affinity | Los Padres | Western | San Luis | Total | |||||||
Bank | Bank | Commercial | Trust | ||||||||
Bank | Bank | ||||||||||
(In thousands) | |||||||||||
FDIC loss sharing asset | $9,732 | $22,962 | $1,709 | $11,121 | $45,524 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
True-up liability | N/A | N/A | $1,522 | $5,125 | $6,647 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Non-single family covered assets(1) | $199,686 | $133,201 | $16,309 | $44,859 | $394,055 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Single family covered assets | $14,197 | $74,367 | N/A | $37,997 | $126,561 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Loss sharing expiration dates: | |||||||||||
Non-single family | 3rd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | |||||||
2014 | 2015 | 2015 | 2016 | ||||||||
Single family | 3rd Quarter 2019 | 3rd Quarter 2020 | N/A | 1st Quarter 2021 | |||||||
Loss recovery expiration dates: | |||||||||||
Non-single family | 3rd Quarter 2017 | 3rd Quarter 2018 | 4th Quarter 2018 | 1st Quarter 2019 | |||||||
Single family | 3rd Quarter 2019 | 3rd Quarter 2020 | N/A | 1st Quarter 2021 | |||||||
-1 | |||||||||||
Excludes securities. | |||||||||||
PREMISES_AND_EQUIPMENT_NET_Tab
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PREMISES AND EQUIPMENT, NET | ' | |||||||
Schedule of components of premises and equipment | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Land | $ | 6,755 | $ | 2,027 | ||||
Buildings | 12,725 | 5,578 | ||||||
Furniture, fixtures and equipment | 31,080 | 28,272 | ||||||
Leasehold improvements | 26,091 | 23,996 | ||||||
| | | | | | | | |
Premises and equipment, gross | 76,651 | 59,873 | ||||||
Less: accumulated depreciation and amortization | (44,216 | ) | (40,370 | ) | ||||
| | | | | | | | |
Premises and equipment, net | $ | 32,435 | $ | 19,503 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of future minimum rental payments under noncancelable operating leases | ' | |||||||
Estimated Lease Payments for | Amount | |||||||
Year Ending December 31, | ||||||||
(In thousands) | ||||||||
2014 | $ | 17,279 | ||||||
2015 | 15,055 | |||||||
2016 | 12,317 | |||||||
2017 | 9,824 | |||||||
2018 | 7,461 | |||||||
Thereafter | 12,449 | |||||||
| | | | | ||||
Total | $ | 74,385 | ||||||
| | | | | ||||
| | | | | ||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
DEPOSITS | ' | |||||||||||||
Schedule of components of interest-bearing deposits | ' | |||||||||||||
December 31, | ||||||||||||||
Deposit Category | 2013 | 2012 | ||||||||||||
(In thousands) | ||||||||||||||
Interest checking deposits | $ | 620,622 | $ | 513,389 | ||||||||||
Money market deposits | 1,458,910 | 1,282,513 | ||||||||||||
Savings deposits | 218,638 | 153,680 | ||||||||||||
Time deposits under $100,000 | 225,360 | 274,622 | ||||||||||||
Time deposits of $100,000 or more | 439,011 | 545,705 | ||||||||||||
| | | | | | | | |||||||
Total interest-bearing deposits | $ | 2,962,541 | $ | 2,769,909 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Summary of maturities of time deposits | ' | |||||||||||||
December 31, 2013 | ||||||||||||||
Year of Maturity | Time | Time | Total | Rate | ||||||||||
Deposits | Deposits | Time | ||||||||||||
Under | $100,000 | Deposits | ||||||||||||
$100,000 | or More | |||||||||||||
(Dollars in thousands) | ||||||||||||||
2014 | $ | 173,820 | $ | 343,463 | $ | 517,283 | 0.49 | % | ||||||
2015 | 17,200 | 36,419 | 53,619 | 0.82 | % | |||||||||
2016 | 29,151 | 47,769 | 76,920 | 0.78 | % | |||||||||
2017 | 2,694 | 7,472 | 10,166 | 1.1 | % | |||||||||
2018 | 2,425 | 3,888 | 6,313 | 0.78 | % | |||||||||
2019 | 70 | — | 70 | 0.7 | % | |||||||||
| | | | | | | | | | | | | | |
Total | $ | 225,360 | $ | 439,011 | $ | 664,371 | 0.56 | % | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
BORROWINGS_AND_SUBORDINATED_DE1
BORROWINGS AND SUBORDINATED DEBENTURES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
BORROWINGS AND SUBORDINATED DEBENTURES | ' | ||||||||||||||||||||||||
Schedule of borrowings outstanding | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Non-recourse debt | $ | 7,126 | 6.3 | % | $ | 12,591 | 6.28 | % | |||||||||||||||||
Overnight FHLB advances | 106,600 | 0.06 | % | — | — | ||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Total borrowings | $ | 113,726 | $ | 12,591 | |||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Summary of outstanding FHLB advances by their maturity dates | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Date | Maturity | Next | |||||||||||||||||||||||
Issued | Date | Reset | |||||||||||||||||||||||
Series | Amount | Rate(1) | Amount | Rate(2) | Rate Index | Date | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Trust V | $ | 10,310 | 3.34 | % | $ | 10,310 | 3.41 | % | 8/15/03 | 9/17/33 | 3 month LIBOR + 3.10 | 3/13/14 | |||||||||||||
Trust VI | 10,310 | 3.29 | % | 10,310 | 3.36 | % | 9/3/03 | 9/15/33 | 3 month LIBOR + 3.05 | 3/12/14 | |||||||||||||||
Trust CII | 5,155 | 3.19 | % | 5,155 | 3.26 | % | 9/17/03 | 9/17/33 | 3 month LIBOR + 2.95 | 3/13/14 | |||||||||||||||
Trust VII | 61,856 | 2.99 | % | 61,856 | 3.05 | % | 2/5/04 | 4/23/34 | 3 month LIBOR + 2.75 | 4/28/14 | |||||||||||||||
Trust CIII | 20,619 | 1.93 | % | 20,619 | 2 | % | 8/15/05 | 9/15/35 | 3 month LIBOR + 1.69 | 3/12/14 | |||||||||||||||
Trust FCCI(3) | 16,495 | 1.84 | % | — | — | 1/25/07 | 3/15/37 | 3 month LIBOR + 1.60 | 3/12/14 | ||||||||||||||||
Trust FCBI(3) | 10,310 | 1.79 | % | — | — | 9/30/05 | 12/15/35 | 3 month LIBOR + 1.55 | 3/12/14 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Gross subordinated debentures | 135,055 | 108,250 | |||||||||||||||||||||||
Unamortized discount(4) | (2,410 | ) | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net subordinated debentures | $ | 132,645 | $ | 108,250 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||||||||
As of January 28, 2014. | |||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||
As of January 28, 2013. | |||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||
Acquired in the FCAL acquisition. | |||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||
Amount represents the fair value adjustment on trusts acquired in the FCAL acquisition. | |||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
Summary of the financial instruments | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Total loan commitments to extend credit | $ | 1,001,740 | $ | 849,607 | ||||
Standby letters of credit | 39,200 | 27,534 | ||||||
Commitments to purchase equipment being acquired for lease to others | 8,475 | 4,399 | ||||||
| | | | | | | | |
$ | 1,049,415 | $ | 881,540 | |||||
| | | | | | | | |
| | | | | | | | |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
Schedule of information on the assets measured and recorded at fair value on a recurring basis | ' | ||||||||||||||||
Fair Value Measurement as of December 31, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
(In thousands) | |||||||||||||||||
Measured on a Recurring Basis: | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Government agency and government-sponsored enterprise residential mortgage-backed securities | $ | 900,061 | $ | — | $ | 900,061 | $ | — | |||||||||
Covered private label CMOs | 37,904 | — | — | 37,904 | |||||||||||||
Municipal securities | 436,658 | — | 436,658 | — | |||||||||||||
Corporate debt securities | 82,707 | — | 82,707 | — | |||||||||||||
Government-sponsored enterprise debt securities | 9,872 | — | 9,872 | — | |||||||||||||
Other securities | 27,543 | 507 | 27,036 | — | |||||||||||||
| | | | | | | | | | | | | | ||||
$ | 1,494,745 | $ | 507 | $ | 1,456,334 | $ | 37,904 | ||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Fair Value Measurement as of December 31, 2012 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
(In thousands) | |||||||||||||||||
Measured on a Recurring Basis: | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Government agency and government-sponsored enterprise residential mortgage-backed securities | $ | 909,536 | $ | — | $ | 909,536 | $ | — | |||||||||
Covered private label CMOs | 44,684 | — | — | 44,684 | |||||||||||||
Municipal securities | 348,041 | — | 348,041 | — | |||||||||||||
Corporate debt securities | 42,365 | — | 42,365 | — | |||||||||||||
Other securities | 10,759 | 8,985 | 1,774 | — | |||||||||||||
| | | | | | | | | | | | | | ||||
$ | 1,355,385 | $ | 8,985 | $ | 1,301,716 | $ | 44,684 | ||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Fair value measurements | ' | ||||||||||||||||
Summary of activity for assets measured at fair value on a recurring basis that are categorized as Level 3 | ' | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Covered private label CMOs, beginning of year | $ | 44,684 | $ | 45,149 | $ | 50,437 | |||||||||||
Total realized in earnings(1) | 1,938 | 340 | 2,097 | ||||||||||||||
Total unrealized gain (loss) in comprehensive income | (1,204 | ) | 4,883 | (846 | ) | ||||||||||||
Net settlements | (7,514 | ) | (5,688 | ) | (6,539 | ) | |||||||||||
| | | | | | | | | | | |||||||
Covered private label CMOs, end of year | $ | 37,904 | $ | 44,684 | $ | 45,149 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
-1 | |||||||||||||||||
Includes other-than-temporary impairment loss of $1.1 million for 2012. | |||||||||||||||||
Schedule of assets measured at fair value on a non-recurring basis | ' | ||||||||||||||||
Fair Value Measurement as of December 31, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
(In thousands) | |||||||||||||||||
Measured on a Non-Recurring Basis: | |||||||||||||||||
Non-PCI impaired loans | $ | 40,886 | $ | — | $ | 2,051 | $ | 38,835 | |||||||||
Non-covered other real estate owned | 9,062 | — | 7,084 | 1,978 | |||||||||||||
Covered other real estate owned | 1,815 | — | 1,700 | 115 | |||||||||||||
SBA loan servicing asset | 807 | — | — | 807 | |||||||||||||
| | | | | | | | | | | | | | ||||
$ | 52,570 | $ | — | $ | 10,835 | $ | 41,735 | ||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Fair Value Measurement as of December 31, 2012 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
(In thousands) | |||||||||||||||||
Measured on a Non-Recurring Basis: | |||||||||||||||||
Non-PCI impaired loans | $ | 102,207 | $ | — | $ | 4,975 | $ | 97,232 | |||||||||
Non-covered other real estate owned | 7,945 | — | — | 7,945 | |||||||||||||
Covered other real estate owned | 4,893 | — | 2,599 | 2,294 | |||||||||||||
SBA loan servicing asset | 1,000 | — | — | 1,000 | |||||||||||||
| | | | | | | | | | | | | | ||||
$ | 116,045 | $ | — | $ | 7,574 | $ | 108,471 | ||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Schedule of gains and (losses) recognized on assets measured at fair value on a non-recurring basis | ' | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Gain (Loss) on Assets Measured on a Non-Recurring Basis: | |||||||||||||||||
Non-covered impaired loans | $ | (1,206 | ) | $ | (5,582 | ) | $ | (22,796 | ) | ||||||||
Non-covered other real estate owned | (726 | ) | (2,824 | ) | (4,381 | ) | |||||||||||
Covered other real estate owned | (319 | ) | (1,096 | ) | (9,275 | ) | |||||||||||
SBA loan servicing asset | 12 | 4 | 2 | ||||||||||||||
| | | | | | | | | | | |||||||
Total net loss | $ | (2,239 | ) | $ | (9,498 | ) | $ | (36,450 | ) | ||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Summary of carrying values and estimated fair values of certain financial instruments | ' | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying or | |||||||||||||||||
Contract | |||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 96,424 | $ | 96,424 | $ | 96,424 | $ | — | $ | — | |||||||
Interest-earning deposits in financial institutions | 50,998 | 50,998 | 50,998 | — | — | ||||||||||||
Securities available-for-sale | 1,494,745 | 1,494,745 | 507 | 1,456,334 | 37,904 | ||||||||||||
Investment in FHLB stock | 27,939 | 27,939 | — | 27,939 | — | ||||||||||||
Loans and leases, net | 4,230,318 | 4,231,078 | — | 2,051 | 4,229,027 | ||||||||||||
SBA loan servicing asset | 807 | 807 | — | — | 807 | ||||||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | |||||||||||||||||
Demand, money market, interest checking, and savings deposits | 4,616,616 | 4,616,616 | — | 4,616,616 | — | ||||||||||||
Time deposits | 664,371 | 665,148 | — | 665,148 | — | ||||||||||||
Borrowings | 113,726 | 113,726 | 106,600 | 7,126 | — | ||||||||||||
Subordinated debentures | 132,645 | 132,498 | — | 132,498 | — | ||||||||||||
December 31, 2012 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying or | |||||||||||||||||
Contract | |||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 89,011 | $ | 89,011 | $ | 89,011 | $ | — | $ | — | |||||||
Interest-earning deposits in financial institutions | 75,393 | 75,393 | 75,393 | — | — | ||||||||||||
Securities available-for-sale | 1,355,385 | 1,355,385 | 8,985 | 1,301,716 | 44,684 | ||||||||||||
Investment in FHLB stock | 37,126 | 37,126 | — | 37,126 | — | ||||||||||||
Loans and leases, net | 3,498,329 | 3,551,674 | — | 4,975 | 3,546,699 | ||||||||||||
SBA loan servicing asset | 1,000 | 1,000 | — | — | 1,000 | ||||||||||||
Financial Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand, money market, interest checking, and savings deposits | 3,888,794 | 3,888,794 | — | 3,888,794 | — | ||||||||||||
Time deposits | 820,327 | 823,912 | — | 823,912 | — | ||||||||||||
Borrowings | 12,591 | 12,611 | — | 12,611 | — | ||||||||||||
Subordinated debentures | 108,250 | 108,186 | — | 108,186 | — | ||||||||||||
Recurring basis | ' | ||||||||||||||||
Fair value measurements | ' | ||||||||||||||||
Schedule of information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values | ' | ||||||||||||||||
Covered Private Label CMO's: | Range of | Weighted | |||||||||||||||
Unobservable Inputs | Inputs | Average | |||||||||||||||
Input | |||||||||||||||||
Voluntary annual prepayment speeds | 0% - 34.4% | 5.9 | % | ||||||||||||||
Annual default rates | 0% - 42.5% | 3 | % | ||||||||||||||
Loss severity rates | 0% - 64.6% | 29.9 | % | ||||||||||||||
Discount rates | 0% - 11.1% | 5.2 | % | ||||||||||||||
Nonrecurring basis | ' | ||||||||||||||||
Fair value measurements | ' | ||||||||||||||||
Schedule of information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values | ' | ||||||||||||||||
Asset | Fair Value | Valuation | Unobservable | Range | Weighted | ||||||||||||
(in 000's) | Methodology | Inputs | Average | ||||||||||||||
Impaired loans(1) | $ | 37,672 | Discounted cash flow | Discount rates | 4.06% - 8.81% | 6.29 | % | ||||||||||
OREO | $ | 2,093 | Appraisals | Discount, including 8% for selling costs | 12% - 30% | 13 | % | ||||||||||
SBA loan servicing asset | $ | 807 | Discounted cash flow | Prepayment speeds | 3.40% - 16.34% | -2 | |||||||||||
Discount rates | 9.63% - 13.42% | -2 | |||||||||||||||
-1 | |||||||||||||||||
Excludes $1.2 million of impaired loans with balances of $250,000 or less. | |||||||||||||||||
-2 | |||||||||||||||||
Not readily available. | |||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of the components of income tax expense | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Current Income Tax (Expense) Benefit: | |||||||||||
Federal | $ | (29,591 | ) | $ | (24,177 | ) | $ | (15,129 | ) | ||
State | (7,667 | ) | (1,825 | ) | (9,562 | ) | |||||
| | | | | | | | | | | |
Total current income tax expense | (37,258 | ) | (26,002 | ) | (24,691 | ) | |||||
| | | | | | | | | | | |
Deferred Income Tax (Expense) Benefit: | |||||||||||
Federal | 9,099 | (2,550 | ) | (11,726 | ) | ||||||
State | (1,586 | ) | (8,143 | ) | (383 | ) | |||||
| | | | | | | | | | | |
Total deferred income tax benefit (expense) | 7,513 | (10,693 | ) | (12,109 | ) | ||||||
| | | | | | | | | | | |
Total income tax expense | $ | (29,745 | ) | $ | (36,695 | ) | $ | (36,800 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation of the recorded income tax expense to the amount of taxes computed by applying the applicable federal statutory income tax rate to earnings or loss before income taxes | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Computed expected income tax expense at federal statutory rate | $ | (26,201 | ) | $ | (32,724 | ) | $ | (30,626 | ) | ||
State tax expense, net of federal tax benefit | (6,014 | ) | (6,479 | ) | (6,464 | ) | |||||
Tax-exempt interest benefit | 3,979 | 1,847 | 406 | ||||||||
Increase in cash surrender value of life insurance | 407 | 442 | 504 | ||||||||
Tax credits | 2,480 | 1,313 | 556 | ||||||||
Nondeductible employee compensation | (4,730 | ) | (322 | ) | (572 | ) | |||||
Nondeductible acquisition-related expense | (1,196 | ) | (532 | ) | — | ||||||
Acquisition-related securities gain | 1,828 | — | — | ||||||||
Other, net | (298 | ) | (240 | ) | (604 | ) | |||||
| | | | | | | | | | | |
Recorded income tax expense | $ | (29,745 | ) | $ | (36,695 | ) | $ | (36,800 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Deferred Tax Assets: | |||||||||||
Book allowance for loan losses in excess of tax specific charge-offs | $ | 45,840 | $ | 31,602 | |||||||
Interest on nonaccrual loans | 444 | 473 | |||||||||
Deferred compensation | 4,541 | 3,727 | |||||||||
Premises and equipment, principally due to differences in depreciation | 3,643 | 2,457 | |||||||||
OREO valuation allowance | 9,784 | 7,398 | |||||||||
Assets acquired in FDIC-assisted acquisition | 16,375 | 19,170 | |||||||||
State tax benefit | 2,368 | 247 | |||||||||
Accrued liabilities | 16,629 | 10,126 | |||||||||
Other | 7,846 | 10,934 | |||||||||
Goodwill | 6,595 | 3,846 | |||||||||
Deferred loan fees and costs | 378 | — | |||||||||
Unrealized loss on securities available-for-sale | 2,424 | — | |||||||||
| | | | | | | | ||||
Gross deferred tax assets | 116,867 | 89,980 | |||||||||
| | | | | | | | ||||
Deferred Tax Liabilities: | |||||||||||
Core deposit and customer relationship intangibles | 6,022 | 5,004 | |||||||||
Deferred loan fees and costs | — | 296 | |||||||||
Unrealized gain on securities available-for-sale | — | 23,824 | |||||||||
FHLB stock and dividends | 7,123 | 7,557 | |||||||||
Unrealized income from FDIC-assisted acquisition | 24,086 | 23,614 | |||||||||
| | | | | | | | ||||
Gross deferred tax liabilities | 37,231 | 60,295 | |||||||||
| | | | | | | | ||||
Total net deferred tax asset | $ | 79,636 | $ | 29,685 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
Schedule of the calculation of basic and diluted net earnings per share | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, | |||||||||||
except per share data) | |||||||||||
Basic Earnings Per Share: | |||||||||||
Net earnings from continuing operations | $ | 45,477 | $ | 56,801 | $ | 50,704 | |||||
Less: earnings allocated to unvested restricted stock(1) | (1,096 | ) | (1,845 | ) | (2,072 | ) | |||||
| | | | | | | | | | | |
Net earnings from continuing operations allocated to common shares | 44,381 | 54,956 | 48,632 | ||||||||
Net loss from discontinued operations allocated to common shares | (348 | ) | — | — | |||||||
| | | | | | | | | | | |
Net earnings allocated to common shares | $ | 44,033 | $ | 54,956 | $ | 48,632 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Weighted-average basic shares and unvested restricted stock outstanding | 42,506 | 37,370 | 37,142 | ||||||||
Less: weighted-average unvested restricted stock outstanding | (1,683 | ) | (1,685 | ) | (1,651 | ) | |||||
| | | | | | | | | | | |
Weighted-average basic shares outstanding | 40,823 | 35,685 | 35,491 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic earnings per share: | |||||||||||
Net earnings from continuing operations | $ | 1.09 | $ | 1.54 | $ | 1.37 | |||||
Net loss from discontinued operations | (0.01 | ) | — | — | |||||||
| | | | | | | | | | | |
Net earnings | $ | 1.08 | $ | 1.54 | $ | 1.37 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted Earnings Per Share: | |||||||||||
Net earnings from continuing operations allocated to common shares | $ | 44,381 | $ | 54,956 | $ | 48,632 | |||||
Net loss from discontinued operations allocated to common shares | (348 | ) | — | — | |||||||
| | | | | | | | | | | |
Net earnings allocated to common shares | $ | 44,033 | $ | 54,956 | $ | 48,632 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Weighted-average basic shares outstanding | 40,823 | 35,685 | 35,491 | ||||||||
| | | | | | | | | | | |
Diluted earnings per share: | |||||||||||
Net earnings from continuing operations | $ | 1.09 | $ | 1.54 | $ | 1.37 | |||||
Net loss from discontinued operations | (0.01 | ) | — | — | |||||||
| | | | | | | | | | | |
Net earnings | $ | 1.08 | $ | 1.54 | $ | 1.37 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any. | |||||||||||
STOCK_COMPENSATION_PLANS_Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
STOCK COMPENSATION PLANS | ' | |||||||||||||
Summary of restricted stock transactions | ' | |||||||||||||
Number of | Weighted | |||||||||||||
Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
(Per Share) | ||||||||||||||
Unvested restricted stock, December 31, 2010 | 1,230,582 | $ | 35.86 | |||||||||||
Granted | 692,900 | 20.5 | ||||||||||||
Shares issued by the Company upon vesting | (203,174 | ) | 30.13 | |||||||||||
Forfeited | (44,578 | ) | 23.56 | |||||||||||
| | | | | | | | |||||||
Unvested restricted stock, December 31, 2011 | 1,675,730 | 30.53 | ||||||||||||
Granted | 226,400 | 23.77 | ||||||||||||
Shares issued by the Company upon vesting | (195,871 | ) | 21.69 | |||||||||||
Forfeited | (7,978 | ) | 22.31 | |||||||||||
| | | | | | | | |||||||
Unvested restricted stock, December 31, 2012 | 1,698,281 | 30.68 | ||||||||||||
Granted | 673,900 | 29.06 | ||||||||||||
Shares issued by the Company upon vesting | (819,461 | ) | 24.84 | |||||||||||
Forfeited | (336,196 | ) | 48.92 | |||||||||||
| | | | | | | | |||||||
Unvested restricted stock, December 31, 2013 | 1,216,524 | $ | 28.69 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Summary of information about outstanding time-based and performance-based restricted stock awards | ' | |||||||||||||
December 31, 2013 | ||||||||||||||
Number | Weighted | Weighted | Weighted | |||||||||||
of Shares | Average | Average | Average | |||||||||||
Outstanding | Grant Date | Fair Value(1) | Remaining | |||||||||||
Fair Value | (In thousands) | Contractual | ||||||||||||
(Per Share) | Life (Years) | |||||||||||||
Time-based restricted stock granted in: | ||||||||||||||
2010 | 56,884 | $ | 19.79 | $ | 2,402 | 0.2 | ||||||||
2011 | 190,716 | $ | 20.3 | 8,052 | 1.4 | |||||||||
2012 | 213,050 | $ | 23.74 | 8,995 | 1.3 | |||||||||
2013 | 148,424 | $ | 29.87 | 6,266 | 2.3 | |||||||||
| | | | | | | | | | | | | | |
Outstanding time-based restricted stock awards | 609,074 | 25,715 | 1.5 | |||||||||||
| | | | | | | | | | | | | | |
Performance-based restricted stock granted in: | ||||||||||||||
2007 | 205,000 | $ | 54.92 | 8,655 | 3.1 | |||||||||
2011 | 291,759 | $ | 20.46 | 12,318 | 2.2 | |||||||||
2013 | 110,691 | $ | 28.74 | 4,673 | 3.5 | |||||||||
| | | | | | | | | | | | | | |
Outstanding performance-based restricted stock awards | 607,450 | 25,646 | 2.8 | |||||||||||
| | | | | | | | | | | | | | |
Total outstanding restricted stock awards | 1,216,524 | $ | 51,361 | 2.1 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
Determined using the $42.22 closing price of PacWest common stock on December 31, 2013. | ||||||||||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
STOCKHOLDERS' EQUITY | ' | |||||
Schedule of information about reclassification adjustments from accumulated other comprehensive income ("AOCI") | ' | |||||
Year Ended December 31, 2013 | ||||||
AOCI Component: | Amount | Affected Line Item in the | ||||
Reclassified | Statement Where | |||||
from AOCI | Net Income is Presented | |||||
(In thousands) | ||||||
Unrealized gains on available-for-sale securities: | ||||||
$ | 137 | Gain on sale of securities | ||||
5,222 | Acquisition-related securities gain(1) | |||||
| | | | | | |
5,359 | Total before tax | |||||
(58 | ) | Income tax expense | ||||
| | | | | | |
Total reclassification for the year | $ | 5,301 | Net of tax | |||
| | | | | | |
| | | | | | |
-1 | ||||||
Non-taxable gain on equity interest in FCAL common stock at its fair value as of the FCAL acquisition date. | ||||||
DIVIDEND_AVAILABILITY_AND_REGU1
DIVIDEND AVAILABILITY AND REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
DIVIDEND AVAILABILITY AND REGULATORY MATTERS | ' | ||||||||||||||||
Schedule of actual capital amounts and ratios for the Company and the Bank | ' | ||||||||||||||||
Well Capitalized | |||||||||||||||||
Actual | Minimum | ||||||||||||||||
Requirement | Excess | ||||||||||||||||
Capital | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013: | |||||||||||||||||
Tier I capital (to average assets): | |||||||||||||||||
PacWest Bancorp Consolidated | $ | 718,800 | 11.22 | % | $ | 320,405 | 5 | % | $ | 398,395 | |||||||
Pacific Western Bank | 690,440 | 10.79 | 319,999 | 5 | 370,441 | ||||||||||||
Tier I capital (to risk-weighted assets): | |||||||||||||||||
PacWest Bancorp Consolidated | 718,800 | 15.12 | 285,163 | 6 | 433,637 | ||||||||||||
Pacific Western Bank | 690,400 | 14.54 | 284,825 | 6 | 405,575 | ||||||||||||
Total capital (to risk-weighted assets): | |||||||||||||||||
PacWest Bancorp Consolidated | 778,582 | 16.38 | 475,271 | 10 | 303,311 | ||||||||||||
Pacific Western Bank | 750,152 | 15.8 | 474,708 | 10 | 275,444 | ||||||||||||
December 31, 2012: | |||||||||||||||||
Tier I capital (to average assets): | |||||||||||||||||
PacWest Bancorp Consolidated | $ | 570,082 | 10.53 | % | $ | 270,694 | 5 | % | $ | 299,388 | |||||||
Pacific Western Bank | 528,151 | 9.78 | 269,901 | 5 | 258,250 | ||||||||||||
Tier I capital (to risk-weighted assets): | |||||||||||||||||
PacWest Bancorp Consolidated | 570,082 | 15.17 | 225,541 | 6 | 344,541 | ||||||||||||
Pacific Western Bank | 528,151 | 14.1 | 224,778 | 6 | 303,373 | ||||||||||||
Total capital (to risk-weighted assets): | |||||||||||||||||
PacWest Bancorp Consolidated | 617,702 | 16.43 | 375,901 | 10 | 241,801 | ||||||||||||
Pacific Western Bank | 575,614 | 15.36 | 374,630 | 10 | 200,984 |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||
Schedule of information regarding business segments | ' | |||||||||||||
December 31, 2013 | ||||||||||||||
Balance Sheet Data | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Loans and leases, net of unearned income | $ | 3,837,475 | $ | 474,877 | $ | — | $ | 4,312,352 | ||||||
Allowance for loan and lease losses | (75,498 | ) | (6,536 | ) | — | (82,034 | ) | |||||||
| | | | | | | | | | | | | | |
Total loans and leases, net | $ | 3,761,977 | $ | 468,341 | $ | — | $ | 4,230,318 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Goodwill(1) | $ | 183,065 | $ | 25,678 | $ | — | $ | 208,743 | ||||||
Core deposit and customer relationship intangibles, net | 15,331 | 1,917 | — | 17,248 | ||||||||||
Total assets | 6,004,067 | 519,675 | 9,621 | 6,533,363 | ||||||||||
Total deposits(2) | 5,302,822 | — | (21,835 | ) | 5,280,987 | |||||||||
-1 | ||||||||||||||
The increase in the Banking segment's goodwill during 2013 was due primarily to $129.1 million from the FCAL acquisition. | ||||||||||||||
-2 | ||||||||||||||
The negative balance for total deposits in the "Other" segment represents the elimination of holding company cash held in deposit accounts at the Bank. | ||||||||||||||
December 31, 2012 | ||||||||||||||
Balance Sheet Data | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Loans and leases, net of unearned income | $ | 3,175,165 | $ | 415,132 | $ | — | $ | 3,590,297 | ||||||
Allowance for loan and lease losses | (87,538 | ) | (4,430 | ) | — | (91,968 | ) | |||||||
| | | | | | | | | | | | | | |
Total loans and leases, net | $ | 3,087,627 | $ | 410,702 | $ | — | $ | 3,498,329 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Goodwill | $ | 54,188 | $ | 25,678 | $ | — | $ | 79,866 | ||||||
Core deposit and customer relationship intangibles, net | 12,151 | 2,572 | — | 14,723 | ||||||||||
Total assets | 4,991,927 | 451,557 | 20,174 | 5,463,658 | ||||||||||
Total deposits(1) | 4,737,593 | — | (28,472 | ) | 4,709,121 | |||||||||
-1 | ||||||||||||||
The negative balance for total deposits in the "Other" segment represents the elimination of holding company cash held in deposit accounts at the Bank. | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Results of Operations | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Interest income | $ | 261,492 | $ | 48,422 | $ | — | $ | 309,914 | ||||||
Intersegment interest income (expense) | 1,525 | (1,525 | ) | — | — | |||||||||
Other interest expense | (7,873 | ) | (532 | ) | (3,796 | ) | (12,201 | ) | ||||||
| | | | | | | | | | | | | | |
Net interest income | 255,144 | 46,365 | (3,796 | ) | 297,713 | |||||||||
| | | | | | | | | | | | | | |
Negative provision (provision) for credit losses | 8,079 | (3,869 | ) | — | 4,210 | |||||||||
| | | | | | | | | | | | | | |
FDIC loss sharing expense | (26,172 | ) | — | — | (26,172 | ) | ||||||||
Acquisition-related securities gain | — | — | 5,222 | 5,222 | ||||||||||
Other noninterest income | 21,532 | 3,558 | 104 | 25,194 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | (4,640 | ) | 3,558 | 5,326 | 4,244 | |||||||||
| | | | | | | | | | | | | | |
Accelerated vesting of restricted stock | (12,420 | ) | — | — | (12,420 | ) | ||||||||
OREO income (expense) | 1,503 | — | — | 1,503 | ||||||||||
Intangible asset amortization | (4,748 | ) | (654 | ) | — | (5,402 | ) | |||||||
Acquisition and integration costs | (28,132 | ) | — | (260 | ) | (28,392 | ) | |||||||
Other noninterest expense | (156,600 | ) | (23,575 | ) | (5,801 | ) | (185,976 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (200,397 | ) | (24,229 | ) | (6,061 | ) | (230,687 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings (loss) from continuing operations before income taxes | 58,186 | 21,825 | (4,531 | ) | 75,480 | |||||||||
Income tax (expense) benefit | (24,940 | ) | (9,101 | ) | 4,038 | (30,003 | ) | |||||||
| | | | | | | | | | | | | | |
Net earnings (loss) from continuing operations | 33,246 | 12,724 | (493 | ) | 45,477 | |||||||||
| | | | | | | | | | | | | | |
Loss from discontinued operations before income taxes | (620 | ) | — | — | (620 | ) | ||||||||
Income tax benefit | 258 | — | — | 258 | ||||||||||
| | | | | | | | | | | | | | |
Net loss from discontinued operations | (362 | ) | — | — | (362 | ) | ||||||||
| | | | | | | | | | | | | | |
Net earnings (loss) | $ | 32,884 | $ | 12,724 | $ | (493 | ) | $ | 45,115 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Year Ended December 31, 2012 | ||||||||||||||
Results of Operations | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Interest income | $ | 251,720 | $ | 44,395 | $ | — | $ | 296,115 | ||||||
Intersegment interest income (expense) | 2,055 | (2,055 | ) | — | — | |||||||||
Other interest expense | (15,043 | ) | (884 | ) | (3,721 | ) | (19,648 | ) | ||||||
| | | | | | | | | | | | | | |
Net interest income | 238,732 | 41,456 | (3,721 | ) | 276,467 | |||||||||
| | | | | | | | | | | | | | |
Negative provision (provision) for credit losses | 14,585 | (1,766 | ) | — | 12,819 | |||||||||
| | | | | | | | | | | | | | |
FDIC loss sharing expense | (10,070 | ) | — | — | (10,070 | ) | ||||||||
Other noninterest income | 21,811 | 4,017 | 114 | 25,942 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | 11,741 | 4,017 | 114 | 15,872 | ||||||||||
| | | | | | | | | | | | | | |
OREO expense | (10,931 | ) | — | — | (10,931 | ) | ||||||||
Intangible asset amortization | (5,898 | ) | (428 | ) | — | (6,326 | ) | |||||||
Acquisition and integration costs | (4,089 | ) | — | — | (4,089 | ) | ||||||||
Debt termination expense | (24,195 | ) | — | 1,597 | (22,598 | ) | ||||||||
Other noninterest expense | (138,640 | ) | (23,502 | ) | (5,576 | ) | (167,718 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (183,753 | ) | (23,930 | ) | (3,979 | ) | (211,662 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings (loss) before income taxes | 81,305 | 19,777 | (7,586 | ) | 93,496 | |||||||||
Income tax (expense) benefit | (31,542 | ) | (8,327 | ) | 3,174 | (36,695 | ) | |||||||
| | | | | | | | | | | | | | |
Net earnings (loss) | $ | 49,763 | $ | 11,450 | $ | (4,412 | ) | $ | 56,801 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Year Ended December 31, 2011 | ||||||||||||||
Results of Operations | Banking | Asset | Other | Consolidated | ||||||||||
Financing | Company | |||||||||||||
(In thousands) | ||||||||||||||
Interest income | $ | 276,734 | $ | 18,550 | $ | — | $ | 295,284 | ||||||
Intersegment interest income (expense) | 1,226 | (1,226 | ) | — | — | |||||||||
Other interest expense | (27,720 | ) | — | (4,923 | ) | (32,643 | ) | |||||||
| | | | | | | | | | | | | | |
Net interest income | 250,240 | 17,324 | (4,923 | ) | 262,641 | |||||||||
| | | | | | | | | | | | | | |
Provision for credit losses | (26,520 | ) | (50 | ) | — | (26,570 | ) | |||||||
| | | | | | | | | | | | | | |
FDIC loss sharing income | 7,776 | — | — | 7,776 | ||||||||||
Other noninterest income | 22,833 | 660 | 157 | 23,650 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | 30,609 | 660 | 157 | 31,426 | ||||||||||
| | | | | | | | | | | | | | |
OREO expense | (10,676 | ) | — | — | (10,676 | ) | ||||||||
Intangible asset amortization | (8,264 | ) | (164 | ) | — | (8,428 | ) | |||||||
Acquisition and integration costs | (600 | ) | — | — | (600 | ) | ||||||||
Other noninterest expense | (141,188 | ) | (10,846 | ) | (8,255 | ) | (160,289 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (160,728 | ) | (11,010 | ) | (8,255 | ) | (179,993 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings (loss) before income taxes | 93,601 | 6,924 | (13,021 | ) | 87,504 | |||||||||
Income tax (expense) benefit | (39,554 | ) | (2,917 | ) | 5,671 | (36,800 | ) | |||||||
| | | | | | | | | | | | | | |
Net earnings (loss) | $ | 54,047 | $ | 4,007 | $ | (7,350 | ) | $ | 50,704 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
CONDENSED_FINANCIAL_INFORMATIO1
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Tables) (Parent company) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Parent company | ' | ||||||||||
Condensed financial statements | ' | ||||||||||
Schedule of condensed balance sheets | ' | ||||||||||
December 31, | |||||||||||
Parent Company Only | 2013 | 2012 | |||||||||
Condensed Balance Sheets | |||||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Cash and due from banks | $ | 21,835 | $ | 28,472 | |||||||
Investments in subsidiaries | 911,200 | 649,656 | |||||||||
Other assets | 10,341 | 20,174 | |||||||||
| | | | | | | | ||||
Total assets | $ | 943,376 | $ | 698,302 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Liabilities: | |||||||||||
Subordinated debentures | $ | 132,645 | $ | 108,250 | |||||||
Other liabilities | 1,638 | 931 | |||||||||
| | | | | | | | ||||
Total liabilities | 134,283 | 109,181 | |||||||||
Stockholders' equity | 809,093 | 589,121 | |||||||||
| | | | | | | | ||||
Total liabilities and stockholders' equity | $ | 943,376 | $ | 698,302 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of condensed statements of earnings | ' | ||||||||||
Year Ended December 31, | |||||||||||
Parent Company Only | 2013 | 2012 | 2011 | ||||||||
Condensed Statements of Earnings | |||||||||||
(In thousands) | |||||||||||
Acquisition-related securities gain | $ | 5,222 | $ | — | $ | — | |||||
Debt termination income | — | 1,597 | — | ||||||||
Miscellaneous income | 104 | 114 | 157 | ||||||||
Dividends from Bank subsidiary | 48,000 | 50,000 | 25,500 | ||||||||
| | | | | | | | | | | |
Total income | 53,326 | 51,711 | 25,657 | ||||||||
| | | | | | | | | | | |
Interest expense | 3,796 | 3,721 | 4,923 | ||||||||
Operating expenses | 6,061 | 5,576 | 8,255 | ||||||||
| | | | | | | | | | | |
Total expenses | 9,857 | 9,297 | 13,178 | ||||||||
| | | | | | | | | | | |
Earnings before income taxes and equity in undistributed earnings of subsidiaries | 43,469 | 42,414 | 12,479 | ||||||||
Income tax benefit | 4,038 | 3,174 | 5,671 | ||||||||
| | | | | | | | | | | |
Earnings before equity in undistributed earnings of subsidiaries | 47,507 | 45,588 | 18,150 | ||||||||
Equity in undistributed earnings of subsidiaries | (2,392 | ) | 11,213 | 32,554 | |||||||
| | | | | | | | | | | |
Net earnings | $ | 45,115 | $ | 56,801 | $ | 50,704 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of condensed statements of cash flows | ' | ||||||||||
Year Ended December 31, | |||||||||||
Parent Company Only | 2013 | 2012 | 2011 | ||||||||
Condensed Statements of Cash Flows | |||||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 45,115 | $ | 56,801 | $ | 50,704 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Acquisition-related securities gain | (5,222 | ) | — | — | |||||||
Change in other assets | (609 | ) | 711 | (4,533 | ) | ||||||
Change in liabilities | 4,932 | (4,122 | ) | 6,262 | |||||||
Tax effect in stockholders' equity of restricted stock vesting | (364 | ) | (102 | ) | 501 | ||||||
Earned stock compensation | 441 | 715 | 3,551 | ||||||||
Equity in undistributed (earnings) losses of subsidiaries | 2,392 | (11,213 | ) | (32,554 | ) | ||||||
| | | | | | | | | | | |
Net cash provided by operating activities | 46,685 | 42,790 | 23,931 | ||||||||
| | | | | | | | | | | |
Cash flows from investing activities: | |||||||||||
Net cash and cash equivalents acquired in acquisition | 857 | — | — | ||||||||
Purchases of securities available-for-sale | — | (1,500 | ) | (2,580 | ) | ||||||
| | | | | | | | | | | |
Net cash provided by (used in) investing activities | 857 | (1,500 | ) | (2,580 | ) | ||||||
| | | | | | | | | | | |
Cash flows from financing activities: | |||||||||||
Redemptions of subordinated debentures | — | (18,558 | ) | — | |||||||
Tax effect in stockholders' equity of restricted stock vesting | 364 | 102 | (501 | ) | |||||||
Restricted stock surrendered | (13,537 | ) | (1,475 | ) | (1,465 | ) | |||||
Cash dividends paid | (41,006 | ) | (28,787 | ) | (7,626 | ) | |||||
| | | | | | | | | | | |
Net cash used in financing activities | (54,179 | ) | (48,718 | ) | (9,592 | ) | |||||
| | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | (6,637 | ) | (7,428 | ) | 11,759 | ||||||
Cash and cash equivalents, beginning of year | 28,472 | 35,900 | 24,141 | ||||||||
| | | | | | | | | | | |
Cash and cash equivalents, end of year | $ | 21,835 | $ | 28,472 | $ | 35,900 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Common stock issued for First California Financial Group acquisition | $ | 242,268 | $ | — | $ | — |
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (Unaudited) | ' | |||||||||||||
Schedule of company's unaudited, quarterly results | ' | |||||||||||||
Three Months Ended | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Interest income | $ | 83,856 | $ | 85,158 | $ | 71,631 | $ | 69,269 | ||||||
Interest expense | (2,598 | ) | (2,869 | ) | (3,158 | ) | (3,576 | ) | ||||||
| | | | | | | | | | | | | | |
Net interest income | 81,258 | 82,289 | 68,473 | 65,693 | ||||||||||
| | | | | | | | | | | | | | |
Negative provision (provision) for credit losses | 1,338 | 4,167 | 1,842 | (3,137 | ) | |||||||||
| | | | | | | | | | | | | | |
FDIC loss sharing expense, net | (10,593 | ) | (7,032 | ) | (5,410 | ) | (3,137 | ) | ||||||
(Loss) gain on sale of securities | (272 | ) | — | — | 409 | |||||||||
Acquisition-related securities gain | — | 5,222 | — | — | ||||||||||
Other noninterest income | 6,939 | 6,937 | 5,613 | 5,568 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | (3,926 | ) | 5,127 | 203 | 2,840 | |||||||||
| | | | | | | | | | | | | | |
Accelerated vesting of restricted stock | (12,420 | ) | — | — | — | |||||||||
Non-covered OREO expense, net | (25 | ) | 88 | (80 | ) | (313 | ) | |||||||
Covered OREO expense, net | 594 | 332 | 94 | 813 | ||||||||||
Acquisition and integration costs | (4,253 | ) | (5,450 | ) | (17,997 | ) | (692 | ) | ||||||
Other noninterest expense | (49,984 | ) | (51,170 | ) | (46,233 | ) | (43,991 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (66,088 | ) | (56,200 | ) | (64,216 | ) | (44,183 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings from continuing operations before income taxes | 12,582 | 35,383 | 6,302 | 21,213 | ||||||||||
Income tax expense | (9,135 | ) | (11,243 | ) | (1,906 | ) | (7,719 | ) | ||||||
| | | | | | | | | | | | | | |
Net earnings from continuing operations | 3,447 | 24,140 | 4,396 | 13,494 | ||||||||||
| | | | | | | | | | | | | | |
Earnings (loss) from discontinued operations before income taxes | (578 | ) | 39 | (81 | ) | — | ||||||||
Income tax (expense) benefit | 240 | (16 | ) | 34 | — | |||||||||
| | | | | | | | | | | | | | |
Net earnings (loss) from discontinued operations | (338 | ) | 23 | (47 | ) | — | ||||||||
| | | | | | | | | | | | | | |
Net earnings | $ | 3,109 | $ | 24,163 | $ | 4,349 | $ | 13,494 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Basic earnings per share: | ||||||||||||||
Net earnings from continuing operations | $ | 0.07 | $ | 0.53 | $ | 0.11 | $ | 0.37 | ||||||
Net earnings | $ | 0.06 | $ | 0.53 | $ | 0.11 | $ | 0.37 | ||||||
Diluted earnings per share: | ||||||||||||||
Net earnings from continuing operations | $ | 0.07 | $ | 0.53 | $ | 0.11 | $ | 0.37 | ||||||
Net earnings | $ | 0.06 | $ | 0.53 | $ | 0.11 | $ | 0.37 | ||||||
Three Months Ended | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Interest income | $ | 73,702 | $ | 75,123 | $ | 72,890 | $ | 74,400 | ||||||
Interest expense | (4,099 | ) | (4,352 | ) | (4,477 | ) | (6,720 | ) | ||||||
| | | | | | | | | | | | | | |
Net interest income | 69,603 | 70,771 | 68,413 | 67,680 | ||||||||||
| | | | | | | | | | | | | | |
Negative provision for credit losses | 4,333 | 2,141 | 271 | 6,074 | ||||||||||
| | | | | | | | | | | | | | |
FDIC loss sharing expense, net | (6,022 | ) | (367 | ) | (102 | ) | (3,579 | ) | ||||||
Gain on sale of securities | 1,239 | — | — | — | ||||||||||
Other-than-temporary impairment loss on covered security | — | — | (1,115 | ) | — | |||||||||
Other noninterest income | 6,840 | 6,049 | 6,088 | 6,841 | ||||||||||
| | | | | | | | | | | | | | |
Total noninterest income | 2,057 | 5,682 | 4,871 | 3,262 | ||||||||||
| | | | | | | | | | | | | | |
Non-covered OREO expense, net | (316 | ) | (1,883 | ) | (130 | ) | (1,821 | ) | ||||||
Covered OREO expense, net | 461 | (4,290 | ) | (2,130 | ) | (822 | ) | |||||||
Acquisition and integration costs | (1,092 | ) | (2,101 | ) | (871 | ) | (25 | ) | ||||||
Debt termination expense | — | — | — | (22,598 | ) | |||||||||
Other noninterest expense | (42,578 | ) | (43,383 | ) | (44,454 | ) | (43,629 | ) | ||||||
| | | | | | | | | | | | | | |
Total noninterest expense | (43,525 | ) | (51,657 | ) | (47,585 | ) | (68,895 | ) | ||||||
| | | | | | | | | | | | | | |
Earnings before income taxes | 32,468 | 26,937 | 25,970 | 8,121 | ||||||||||
Income tax expense | (12,576 | ) | (10,849 | ) | (10,413 | ) | (2,857 | ) | ||||||
| | | | | | | | | | | | | | |
Net earnings | $ | 19,892 | $ | 16,088 | $ | 15,557 | $ | 5,264 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Earnings per share: | ||||||||||||||
Basic | $ | 0.54 | $ | 0.43 | $ | 0.42 | $ | 0.14 | ||||||
Diluted | $ | 0.54 | $ | 0.43 | $ | 0.42 | $ | 0.14 |
NATURE_OF_OPERATIONS_AND_SUMMA2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | 36 Months Ended | 164 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | item | ||
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ' | ' | ' |
Number of acquisitions completed | ' | 4 | 26 | ' |
Number of banking offices operated in San Francisco Bay area | 3 | ' | ' | ' |
Number of states where the entity has lease receivables | 45 | ' | ' | ' |
Percentage of real estate loans in the total gross non-covered and covered loan portfolio | 70.00% | ' | ' | ' |
Loans and Leases Held for Sale and Servicing Assets | ' | ' | ' | ' |
Loans or leases held for sale | $0 | $0 | $0 | $0 |
Servicing asset | 807,000 | 807,000 | 807,000 | 1,000,000 |
SBA loans with servicing assets | $65,000,000 | $65,000,000 | $65,000,000 | $62,700,000 |
Loans and Leases | ' | ' | ' | ' |
Period of days past due for loans to be placed on nonaccrual status | '90 days | ' | ' | ' |
Period of days past due for leases to be placed on nonaccrual status | '90 days | ' | ' | ' |
Period of time a restructured loan will remain on nonaccrual status | '6 months | ' | ' | ' |
Minimum | ' | ' | ' | ' |
Loans and Leases | ' | ' | ' | ' |
Period of days past due for loans to be considered as delinquent | '30 days | ' | ' | ' |
Period of days past due for which delinquent loans may remain on accrual status | '30 days | ' | ' | ' |
Maximum | ' | ' | ' | ' |
Loans and Leases | ' | ' | ' | ' |
Period of days past due for which delinquent loans may remain on accrual status | '89 days | ' | ' | ' |
NATURE_OF_OPERATIONS_AND_SUMMA3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | Dec. 31, 2013 |
Minimum | ' |
Impaired loans and leases by portfolio segment and class | ' |
Threshold of unpaid principal balance of non-purchased credit impaired nonaccrual loans for individual evaluation of impairment | $250,000 |
Maximum | ' |
Impaired loans and leases by portfolio segment and class | ' |
Threshold of unpaid principal balance of non-purchased credit impaired nonaccrual loans for collective evaluation of impairment | $250,000 |
NATURE_OF_OPERATIONS_AND_SUMMA4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
First $234 million of losses on covered assets | Maximum | ' |
FDIC loss sharing agreement | ' |
Amount of loss on covered assets | $234 |
Exceeding $234 million of losses on covered assets | Minimum | ' |
FDIC loss sharing agreement | ' |
Amount of loss on covered assets | $234 |
Affinity | First $234 million of losses on covered assets | ' |
FDIC loss sharing agreement | ' |
Percentage of losses absorbed by FDIC as per loss sharing agreement | 80.00% |
Percentage of loss recoveries reimbursed to FDIC as per loss sharing agreement | 80.00% |
Affinity | Exceeding $234 million of losses on covered assets | ' |
FDIC loss sharing agreement | ' |
Percentage of losses absorbed by FDIC as per loss sharing agreement | 95.00% |
Percentage of loss recoveries reimbursed to FDIC as per loss sharing agreement | 95.00% |
Los Padres Bank | ' |
FDIC loss sharing agreement | ' |
Percentage of losses absorbed by FDIC as per loss sharing agreement | 80.00% |
Percentage of loss recoveries reimbursed to FDIC as per loss sharing agreement | 80.00% |
Western Commercial Bank | ' |
FDIC loss sharing agreement | ' |
Percentage of losses absorbed by FDIC as per loss sharing agreement | 80.00% |
Percentage of loss recoveries reimbursed to FDIC as per loss sharing agreement | 80.00% |
San Luis Trust Bank | ' |
FDIC loss sharing agreement | ' |
Percentage of losses absorbed by FDIC as per loss sharing agreement | 80.00% |
Percentage of loss recoveries reimbursed to FDIC as per loss sharing agreement | 80.00% |
NATURE_OF_OPERATIONS_AND_SUMMA5
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended |
Dec. 31, 2013 | |
Furniture, fixtures and equipment | Minimum | ' |
PREMISES AND EQUIPMENT, NET | ' |
Estimated useful lives | '3 years |
Furniture, fixtures and equipment | Maximum | ' |
PREMISES AND EQUIPMENT, NET | ' |
Estimated useful lives | '10 years |
Buildings | Maximum | ' |
PREMISES AND EQUIPMENT, NET | ' |
Estimated useful lives | '35 years |
NATURE_OF_OPERATIONS_AND_SUMMA6
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) | 12 Months Ended |
Dec. 31, 2013 | |
item | |
Business Segments | ' |
Number of reportable segments | 3 |
CDI assets | Minimum | ' |
Intangible assets | ' |
Estimated useful lives | '7 years |
CDI assets | Maximum | ' |
Intangible assets | ' |
Estimated useful lives | '10 years |
CRI assets | Minimum | ' |
Intangible assets | ' |
Estimated useful lives | '4 years |
CRI assets | Maximum | ' |
Intangible assets | ' |
Estimated useful lives | '5 years |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | |
DISCONTINUED OPERATIONS | ' | ' | ' | ' |
Earnings from discontinued operations before income taxes | ($578,000) | $39,000 | ($81,000) | ($620,000) |
EPS | ' | ' | ' | ' |
DISCONTINUED OPERATIONS | ' | ' | ' | ' |
Revenues | ' | ' | ' | 2,600,000 |
Earnings from discontinued operations before income taxes | ' | ' | ' | ($620,000) |
RESTRICTED_CASH_BALANCES_Detai
RESTRICTED CASH BALANCES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
RESTRICTED CASH BALANCES | ' | ' |
Average reserves required to be held at the FRB | $13.10 | $5 |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | 31-May-13 | Aug. 03, 2012 | Aug. 01, 2012 | Apr. 03, 2012 | Jan. 03, 2012 |
In Thousands, unless otherwise specified | First California Financial Group | American Perspective Bank | American Perspective Bank | Celtic Capital Corporation | Pacific Western Equipment Finance | ||||
Assets Acquired: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and due from banks | ' | ' | ' | ' | $6,124 | ' | $3,370 | $3,435 | $7,092 |
Interest-earning deposits in financial institutions | ' | ' | ' | ' | 266,889 | ' | 10,081 | ' | ' |
Investment securities available-for-sale | ' | ' | ' | ' | 4,444 | ' | 48,887 | ' | ' |
FHLB stock | ' | ' | ' | ' | 9,518 | ' | 1,412 | ' | ' |
Loans and leases | ' | ' | ' | ' | 1,049,613 | ' | 197,279 | 54,963 | 140,959 |
Other real estate owned | ' | ' | ' | ' | 13,772 | ' | 1,561 | ' | ' |
Premises and equipment | ' | ' | ' | ' | 15,322 | ' | ' | ' | ' |
FDIC loss sharing asset | ' | ' | ' | ' | 17,241 | ' | ' | ' | ' |
Cash surrender value of life insurance | ' | ' | ' | ' | 13,265 | ' | ' | ' | ' |
Goodwill | 208,743 | 79,866 | 39,141 | 47,301 | 129,070 | ' | 15,047 | 6,645 | 19,033 |
Core deposit and customer relationship intangibles | ' | ' | ' | ' | 7,927 | ' | 1,924 | 1,300 | 1,700 |
Other intangible assets | ' | ' | ' | ' | ' | ' | ' | 670 | 1,420 |
Leases in process | ' | ' | ' | ' | ' | ' | ' | ' | 19,162 |
Other assets | ' | ' | ' | ' | 47,671 | ' | 4,234 | 69 | 467 |
Total assets acquired | ' | ' | ' | ' | 1,580,856 | ' | 283,795 | 67,082 | 189,833 |
Liabilities Assumed: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noninterest-bearing deposits | ' | ' | ' | ' | 361,166 | ' | 40,673 | ' | ' |
Interest-bearing deposits | ' | ' | ' | ' | 739,713 | ' | 178,891 | ' | ' |
Borrowings from parent | ' | ' | ' | ' | ' | ' | ' | ' | 128,677 |
Other borrowings | ' | ' | ' | ' | ' | ' | 5,315 | 46,804 | 15,839 |
Subordinated debentures | ' | ' | ' | ' | 24,061 | ' | ' | ' | ' |
Discontinued operations | ' | ' | ' | ' | 184,619 | ' | ' | ' | ' |
Accrued interest payable and other liabilities | ' | ' | ' | ' | 19,729 | ' | 840 | 2,278 | 10,317 |
Total liabilities assumed | ' | ' | ' | ' | 1,329,288 | ' | 225,719 | 49,082 | 154,833 |
Total consideration paid | ' | ' | ' | ' | 251,568 | 58,076 | ' | 18,000 | 35,000 |
Summary of consideration: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid | ' | ' | ' | ' | ' | 58,076 | ' | 18,000 | 35,000 |
PacWest common stock issued | ' | ' | ' | ' | 242,268 | ' | ' | ' | ' |
Cancellation of FCAL common stock owned by PacWest | ' | ' | ' | ' | 9,300 | ' | ' | ' | ' |
Total consideration paid | ' | ' | ' | ' | $251,568 | $58,076 | ' | $18,000 | $35,000 |
ACQUISITIONS_Details_2
ACQUISITIONS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | 31-May-13 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 03, 2012 | Dec. 31, 2013 | Aug. 01, 2012 | Aug. 03, 2012 | Apr. 03, 2012 | Apr. 03, 2012 | Jan. 03, 2012 | Jul. 22, 2013 | Feb. 13, 2014 | Dec. 31, 2013 | |
First California Financial Group | First California Financial Group | First California Financial Group | First California Financial Group | APB | APB | APB | APB | Celtic | Celtic | Pacific Western Equipment Finance | Capital Source | Capital Source | Capital Source | |||||||||||||
Pacific Western Bank | FCB | Pacific Western Bank | Pacific Western Bank | item | ||||||||||||||||||||||
item | item | item | Maximum | |||||||||||||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of entity receivable by stockholders of acquiree for each share of acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2966 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2837 | ' | ' |
Measuring period for determining weighted average price per share for fluctuating shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock of acquiree cancelled in merger (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,094,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of common stock of acquiree cancelled in merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing price of common stock (in dollars per share) | $42.22 | ' | ' | ' | ' | ' | ' | ' | $42.22 | ' | ' | ' | $28.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40.11 | ' |
Total consideration paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 251,568,000 | ' | ' | ' | 58,076,000 | ' | ' | ' | 18,000,000 | ' | 35,000,000 | 2,800,000,000 | ' | ' |
Number of operating branches | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Number of locations added to branch network as a result of integration and consolidation plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 208,743,000 | ' | ' | ' | 79,866,000 | ' | ' | ' | 208,743,000 | 79,866,000 | 39,141,000 | 47,301,000 | 129,070,000 | ' | ' | ' | ' | ' | 15,047,000 | ' | 6,645,000 | ' | 19,033,000 | ' | ' | ' |
Non-taxable gain in earnings on previously-held equity interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain included in stockholders' equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,160,000 | ' | ' | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold limit of asset-based loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' |
Remaining merger-related liability | 0 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of expenses incurred related to acquisition | 4,253,000 | 5,450,000 | 17,997,000 | 692,000 | 1,092,000 | 2,101,000 | 871,000 | 25,000 | 28,392,000 | 4,089,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash receivable by stockholders of acquiree for each share of acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.47 | ' | ' |
Shares acquired (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.85 | ' |
Pro forma consolidated assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,400,000,000 |
Pro forma consolidated branches | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94 |
ACQUISITIONS_Details_3
ACQUISITIONS (Details 3) (FCAL, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
FCAL | ' | ' |
Unaudited pro forma results of operations | ' | ' |
Pro forma revenues (net interest income plus noninterest income) | $325,801 | $370,115 |
Pro forma net earnings from continuing operations | $52,640 | $71,684 |
Pro forma net earnings from continuing operations per share: | ' | ' |
Basic (in dollars per share) | $1.16 | $1.58 |
Diluted (in dollars per share) | $1.16 | $1.58 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2012 | Dec. 31, 2012 | Jan. 03, 2012 | Dec. 31, 2012 | Apr. 03, 2012 | Dec. 31, 2013 |
APB | APB | APB | EQF | EQF | Celtic | Celtic | FCAL | |||
Changes in the carrying amount of goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | $79,866 | $47,301 | ' | ' | $15,047 | ' | $19,033 | ' | $6,645 | ' |
Tax deductible addition from acquisition | ' | ' | ' | ' | ' | 19,033 | ' | ' | ' | ' |
Non-tax deductible addition from the FCAL acquisition | ' | ' | ' | 15,047 | ' | ' | ' | 6,645 | ' | 129,070 |
Adjustments to Los Padres goodwill, including resolution of matter with FDIC regarding settlement accounting for wholly-owned subsidiary of Los Padres | ' | -8,160 | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to APB goodwill | ' | ' | -193 | ' | ' | ' | ' | ' | ' | ' |
Balance, at the end of the period | $208,743 | $39,141 | ' | ' | $15,047 | ' | $19,033 | ' | $6,645 | ' |
Remaining weighted average amortization period | '2 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 3 months 18 days |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) (USD $) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Estimated aggregate amortization expense | ' | ' | ' | ' |
2014 | ' | $5,300,000 | ' | ' |
2015 | ' | 4,800,000 | ' | ' |
2016 | ' | 3,000,000 | ' | ' |
2017 | ' | 1,600,000 | ' | ' |
2018 | ' | 1,300,000 | ' | ' |
Gross amount of CDI and CRI: | ' | ' | ' | ' |
Balance, beginning of period | ' | 45,412,000 | 67,100,000 | 76,319,000 |
Additions due to acquisitions | ' | 7,927,000 | 4,924,000 | ' |
Fully amortized portion | ' | -4,376,000 | -20,746,000 | -9,219,000 |
Removal due to branch sale | ' | ' | -5,866,000 | ' |
Balance, end of period | ' | 48,963,000 | 45,412,000 | 67,100,000 |
Accumulated Amortization: | ' | ' | ' | ' |
Balance, beginning of period | ' | -30,689,000 | -49,685,000 | -50,476,000 |
Amortization | ' | -5,402,000 | -6,326,000 | -8,428,000 |
Fully amortized portion | ' | 4,376,000 | 20,746,000 | 9,219,000 |
Removal due to branch sale | ' | ' | 4,576,000 | ' |
Balance, end of period | ' | -31,715,000 | -30,689,000 | -49,685,000 |
Finite lived intangible assets, net | ' | ' | ' | ' |
Net CDI and CRI, end of year | ' | 17,248,000 | 14,723,000 | 17,415,000 |
Additional information | ' | ' | ' | ' |
Amount of CDI written off related to previously acquired deposits that were sold in connection with the sale of branches | $1,300,000 | ' | ' | ' |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Amortized Cost | $1,500,516,000 | $1,298,661,000 | ' |
Gross Unrealized Gains | 27,774,000 | 59,464,000 | ' |
Gross Unrealized Losses | -33,545,000 | -2,740,000 | ' |
Carrying Value | 1,494,745,000 | 1,355,385,000 | ' |
Market purchases of investment securities available-for-sale by utilizing excess liquidity | 550,211,000 | 485,860,000 | 658,310,000 |
Proceeds from investment securities previously held in portfolio and/or obtained in acquisition | 22,415,000 | 90,745,000 | ' |
Estimated fair value of available-for-sale securities pledged as collateral | 208,300,000 | 157,300,000 | ' |
American Perspective Bank | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Investment securities obtained in acquisition | 48,900,000 | ' | ' |
Proceeds from investment securities previously held in portfolio and/or obtained in acquisition | 45,600,000 | ' | ' |
Gain (loss) on sale of securities | 0 | ' | ' |
Government agency and government-sponsored enterprise pass through securities | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Amortized Cost | 691,944,000 | 774,677,000 | ' |
Gross Unrealized Gains | 18,012,000 | 33,618,000 | ' |
Gross Unrealized Losses | -2,768,000 | -453,000 | ' |
Carrying Value | 707,188,000 | 807,842,000 | ' |
Proceeds from investment securities previously held in portfolio and/or obtained in acquisition | ' | 43,900,000 | ' |
Gross realized gain | ' | 1,200,000 | ' |
Government agency and government-sponsored enterprise collateralized mortgage obligations | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Amortized Cost | 197,069,000 | 99,956,000 | ' |
Gross Unrealized Gains | 388,000 | 1,870,000 | ' |
Gross Unrealized Losses | -4,584,000 | -132,000 | ' |
Carrying Value | 192,873,000 | 101,694,000 | ' |
Covered private label collateralized mortgage obligations | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Amortized Cost | 30,502,000 | 36,078,000 | ' |
Gross Unrealized Gains | 7,552,000 | 8,729,000 | ' |
Gross Unrealized Losses | -150,000 | -123,000 | ' |
Carrying Value | 37,904,000 | 44,684,000 | ' |
Municipal securities | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Amortized Cost | 459,182,000 | 339,547,000 | ' |
Gross Unrealized Gains | 1,749,000 | 10,445,000 | ' |
Gross Unrealized Losses | -24,273,000 | -1,951,000 | ' |
Carrying Value | 436,658,000 | 348,041,000 | ' |
Corporate debt securities | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Amortized Cost | 84,119,000 | 42,014,000 | ' |
Gross Unrealized Gains | 71,000 | 432,000 | ' |
Gross Unrealized Losses | -1,483,000 | -81,000 | ' |
Carrying Value | 82,707,000 | 42,365,000 | ' |
Proceeds from investment securities previously held in portfolio and/or obtained in acquisition | 12,400,000 | ' | ' |
Gross realized gain | 409,000 | ' | ' |
Government-sponsored enterprise debt securities | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Amortized Cost | 10,046,000 | ' | ' |
Gross Unrealized Losses | -174,000 | ' | ' |
Carrying Value | 9,872,000 | ' | ' |
Other securities | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Amortized Cost | 27,654,000 | 6,389,000 | ' |
Gross Unrealized Gains | 2,000 | 4,370,000 | ' |
Gross Unrealized Losses | -113,000 | ' | ' |
Carrying Value | 27,543,000 | 10,759,000 | ' |
Residential mortgage-backed securities issued by the Federal National Mortgage Association and federal Home Loan Mortgage Corporation | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Carrying Value | 740,400,000 | ' | ' |
Collateralized loan obligation securities | ' | ' | ' |
Amortized cost, gross unrealized gains and losses and estimated fair values of securities available-for-sale | ' | ' | ' |
Proceeds from investment securities previously held in portfolio and/or obtained in acquisition | 10,000,000 | ' | ' |
Gross realized loss | $272,000 | ' | ' |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Carrying values and gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than 12 Months, Carrying Value | $773,925 | ' | ' | ' | $192,738 | ' | ' | ' | $773,925 | $192,738 | ' |
Less Than 12 Months, Gross Unrealized Losses | -33,356 | ' | ' | ' | -2,616 | ' | ' | ' | -33,356 | -2,616 | ' |
12 months or Longer, Carrying Value | 5,032 | ' | ' | ' | 1,752 | ' | ' | ' | 5,032 | 1,752 | ' |
12 months or Longer, Gross Unrealized Losses | -189 | ' | ' | ' | -124 | ' | ' | ' | -189 | -124 | ' |
Total, Carrying Value | 778,957 | ' | ' | ' | 194,490 | ' | ' | ' | 778,957 | 194,490 | ' |
Total, Gross Unrealized Losses | -33,545 | ' | ' | ' | -2,740 | ' | ' | ' | -33,545 | -2,740 | ' |
OTTI charges | ' | ' | ' | ' | ' | ' | 1,115 | ' | ' | 1,115 | ' |
FDIC loss sharing income | -10,593 | -7,032 | -5,410 | -3,137 | -6,022 | -367 | -102 | -3,579 | -26,172 | -10,070 | 7,776 |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due in one year or less | 5,775 | ' | ' | ' | ' | ' | ' | ' | 5,775 | ' | ' |
Due after one year through five years | 24,597 | ' | ' | ' | ' | ' | ' | ' | 24,597 | ' | ' |
Due after five years through ten years | 131,259 | ' | ' | ' | ' | ' | ' | ' | 131,259 | ' | ' |
Due after ten years | 1,338,885 | ' | ' | ' | ' | ' | ' | ' | 1,338,885 | ' | ' |
Total securities available-for-sale | 1,500,516 | ' | ' | ' | 1,298,661 | ' | ' | ' | 1,500,516 | 1,298,661 | ' |
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due in one year or less | 5,792 | ' | ' | ' | ' | ' | ' | ' | 5,792 | ' | ' |
Due after one year through five years | 24,749 | ' | ' | ' | ' | ' | ' | ' | 24,749 | ' | ' |
Due after five years through ten years | 129,985 | ' | ' | ' | ' | ' | ' | ' | 129,985 | ' | ' |
Due after ten years | 1,334,219 | ' | ' | ' | ' | ' | ' | ' | 1,334,219 | ' | ' |
Carrying Value | 1,494,745 | ' | ' | ' | 1,355,385 | ' | ' | ' | 1,494,745 | 1,355,385 | ' |
FHLB Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Federal Home Loan Bank stock carried at cost | 27,939 | ' | ' | ' | 37,126 | ' | ' | ' | 27,939 | 37,126 | ' |
Interest income on investment securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxable interest | ' | ' | ' | ' | ' | ' | ' | ' | 23,542 | 29,652 | 33,390 |
Nontaxable interest | ' | ' | ' | ' | ' | ' | ' | ' | 11,777 | 5,559 | 1,222 |
Dividend income | ' | ' | ' | ' | ' | ' | ' | ' | 1,604 | 446 | 173 |
Total interest income on investment securities | ' | ' | ' | ' | ' | ' | ' | ' | 36,923 | 35,657 | 34,785 |
Government agency and government-sponsored enterprise pass through securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values and gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than 12 Months, Carrying Value | 148,662 | ' | ' | ' | 67,299 | ' | ' | ' | 148,662 | 67,299 | ' |
Less Than 12 Months, Gross Unrealized Losses | -2,767 | ' | ' | ' | -452 | ' | ' | ' | -2,767 | -452 | ' |
12 months or Longer, Carrying Value | 32 | ' | ' | ' | 60 | ' | ' | ' | 32 | 60 | ' |
12 months or Longer, Gross Unrealized Losses | -1 | ' | ' | ' | -1 | ' | ' | ' | -1 | -1 | ' |
Total, Carrying Value | 148,694 | ' | ' | ' | 67,359 | ' | ' | ' | 148,694 | 67,359 | ' |
Total, Gross Unrealized Losses | -2,768 | ' | ' | ' | -453 | ' | ' | ' | -2,768 | -453 | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total securities available-for-sale | 691,944 | ' | ' | ' | 774,677 | ' | ' | ' | 691,944 | 774,677 | ' |
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | 707,188 | ' | ' | ' | 807,842 | ' | ' | ' | 707,188 | 807,842 | ' |
Government agency and government-sponsored enterprise collateralized mortgage obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values and gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than 12 Months, Carrying Value | 179,938 | ' | ' | ' | 18,317 | ' | ' | ' | 179,938 | 18,317 | ' |
Less Than 12 Months, Gross Unrealized Losses | -4,486 | ' | ' | ' | -132 | ' | ' | ' | -4,486 | -132 | ' |
12 months or Longer, Carrying Value | 4,383 | ' | ' | ' | ' | ' | ' | ' | 4,383 | ' | ' |
12 months or Longer, Gross Unrealized Losses | -98 | ' | ' | ' | ' | ' | ' | ' | -98 | ' | ' |
Total, Carrying Value | 184,321 | ' | ' | ' | 18,317 | ' | ' | ' | 184,321 | 18,317 | ' |
Total, Gross Unrealized Losses | -4,584 | ' | ' | ' | -132 | ' | ' | ' | -4,584 | -132 | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total securities available-for-sale | 197,069 | ' | ' | ' | 99,956 | ' | ' | ' | 197,069 | 99,956 | ' |
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | 192,873 | ' | ' | ' | 101,694 | ' | ' | ' | 192,873 | 101,694 | ' |
Covered private label collateralized mortgage obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values and gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than 12 Months, Carrying Value | 1,640 | ' | ' | ' | ' | ' | ' | ' | 1,640 | ' | ' |
Less Than 12 Months, Gross Unrealized Losses | -60 | ' | ' | ' | ' | ' | ' | ' | -60 | ' | ' |
12 months or Longer, Carrying Value | 617 | ' | ' | ' | 1,692 | ' | ' | ' | 617 | 1,692 | ' |
12 months or Longer, Gross Unrealized Losses | -90 | ' | ' | ' | -123 | ' | ' | ' | -90 | -123 | ' |
Total, Carrying Value | 2,257 | ' | ' | ' | 1,692 | ' | ' | ' | 2,257 | 1,692 | ' |
Total, Gross Unrealized Losses | -150 | ' | ' | ' | -123 | ' | ' | ' | -150 | -123 | ' |
Number of securities impaired due to deteriorating cash flows | ' | ' | ' | ' | 1 | ' | ' | ' | ' | 1 | ' |
OTTI charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,100 | 0 |
FDIC loss sharing income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 892 | ' |
FDIC loss sharing income (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total securities available-for-sale | 30,502 | ' | ' | ' | 36,078 | ' | ' | ' | 30,502 | 36,078 | ' |
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | 37,904 | ' | ' | ' | 44,684 | ' | ' | ' | 37,904 | 44,684 | ' |
Municipal securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values and gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than 12 Months, Carrying Value | 337,208 | ' | ' | ' | 90,303 | ' | ' | ' | 337,208 | 90,303 | ' |
Less Than 12 Months, Gross Unrealized Losses | -24,273 | ' | ' | ' | -1,951 | ' | ' | ' | -24,273 | -1,951 | ' |
Total, Carrying Value | 337,208 | ' | ' | ' | 90,303 | ' | ' | ' | 337,208 | 90,303 | ' |
Total, Gross Unrealized Losses | -24,273 | ' | ' | ' | -1,951 | ' | ' | ' | -24,273 | -1,951 | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total securities available-for-sale | 459,182 | ' | ' | ' | 339,547 | ' | ' | ' | 459,182 | 339,547 | ' |
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | 436,658 | ' | ' | ' | 348,041 | ' | ' | ' | 436,658 | 348,041 | ' |
Corporate debt securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values and gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than 12 Months, Carrying Value | 72,636 | ' | ' | ' | 16,819 | ' | ' | ' | 72,636 | 16,819 | ' |
Less Than 12 Months, Gross Unrealized Losses | -1,483 | ' | ' | ' | -81 | ' | ' | ' | -1,483 | -81 | ' |
Total, Carrying Value | 72,636 | ' | ' | ' | 16,819 | ' | ' | ' | 72,636 | 16,819 | ' |
Total, Gross Unrealized Losses | -1,483 | ' | ' | ' | -81 | ' | ' | ' | -1,483 | -81 | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total securities available-for-sale | 84,119 | ' | ' | ' | 42,014 | ' | ' | ' | 84,119 | 42,014 | ' |
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | 82,707 | ' | ' | ' | 42,365 | ' | ' | ' | 82,707 | 42,365 | ' |
Government-sponsored enterprise debt securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values and gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than 12 Months, Carrying Value | 9,872 | ' | ' | ' | ' | ' | ' | ' | 9,872 | ' | ' |
Less Than 12 Months, Gross Unrealized Losses | -174 | ' | ' | ' | ' | ' | ' | ' | -174 | ' | ' |
Total, Carrying Value | 9,872 | ' | ' | ' | ' | ' | ' | ' | 9,872 | ' | ' |
Total, Gross Unrealized Losses | -174 | ' | ' | ' | ' | ' | ' | ' | -174 | ' | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total securities available-for-sale | 10,046 | ' | ' | ' | ' | ' | ' | ' | 10,046 | ' | ' |
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | 9,872 | ' | ' | ' | ' | ' | ' | ' | 9,872 | ' | ' |
Other securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values and gross unrealized losses on securities by length of time the securities were in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than 12 Months, Carrying Value | 23,969 | ' | ' | ' | ' | ' | ' | ' | 23,969 | ' | ' |
Less Than 12 Months, Gross Unrealized Losses | -113 | ' | ' | ' | ' | ' | ' | ' | -113 | ' | ' |
Total, Carrying Value | 23,969 | ' | ' | ' | ' | ' | ' | ' | 23,969 | ' | ' |
Total, Gross Unrealized Losses | -113 | ' | ' | ' | ' | ' | ' | ' | -113 | ' | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total securities available-for-sale | 27,654 | ' | ' | ' | 6,389 | ' | ' | ' | 27,654 | 6,389 | ' |
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | $27,543 | ' | ' | ' | $10,759 | ' | ' | ' | $27,543 | $10,759 | ' |
LOANS_AND_LEASES_Details
LOANS AND LEASES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Composition of loan portfolio | ' | ' | ' |
Non-covered loans and leases | $3,864,917 | $3,049,505 | ' |
Covered loans | 448,418 | 543,327 | ' |
Total gross loans and leases | 4,313,335 | 3,592,832 | ' |
Unearned income | -983 | -2,535 | ' |
Total loans and leases, net of unearned income | 4,312,352 | 3,590,297 | ' |
Allowance for loan and lease losses: | ' | ' | ' |
Non-covered loans and leases | -60,241 | -65,899 | ' |
Covered loans | -21,793 | -26,069 | ' |
Total allowance for loans and lease losses | -82,034 | -91,968 | -116,588 |
Total loans and leases, net | 4,230,318 | 3,498,329 | ' |
Non-PCI Loans | ' | ' | ' |
Composition of loan portfolio | ' | ' | ' |
Non-covered loans and leases | 3,844,591 | 3,049,505 | ' |
Covered loans | 85,948 | 25,442 | ' |
Total gross loans and leases | 3,930,539 | 3,074,947 | ' |
Unearned income | -983 | -2,535 | ' |
Total loans and leases, net of unearned income | 3,929,556 | 3,072,412 | ' |
Allowance for loan and lease losses: | ' | ' | ' |
Non-covered loans and leases | -60,241 | -65,899 | ' |
Total allowance for loans and lease losses | -60,241 | -65,899 | -85,313 |
Total loans and leases, net | 3,869,315 | 3,006,513 | ' |
PCI Loans | ' | ' | ' |
Composition of loan portfolio | ' | ' | ' |
Non-covered loans and leases | 20,326 | ' | ' |
Covered loans | 362,470 | 517,885 | ' |
Total gross loans and leases | 382,796 | 517,885 | ' |
Total loans and leases, net of unearned income | 382,796 | 517,885 | ' |
Allowance for loan and lease losses: | ' | ' | ' |
Covered loans | ' | -26,069 | ' |
Total allowance for loans and lease losses | -21,793 | -26,069 | -31,275 |
Total loans and leases, net | $361,003 | $491,816 | ' |
LOANS_AND_LEASES_Details_2
LOANS AND LEASES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
FCAL | Real estate mortgage | Real estate mortgage | Real estate construction | Real estate construction | Commercial | Commercial | Leases | Leases | Consumer | Consumer | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | Non-PCI Loans and Leases | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | |||
FCAL | Real estate mortgage | Real estate mortgage | Real estate construction | Real estate construction | Commercial | Commercial | Leases | Leases | Consumer | Consumer | Real estate mortgage | Real estate mortgage | Real estate construction | Real estate construction | Commercial | Commercial | Consumer | Consumer | ||||||||||||||||||
Summary of the carrying values of PCI loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-covered loans and leases | $3,864,917,000 | $3,049,505,000 | ' | $2,378,025,000 | $1,919,310,000 | $201,723,000 | $129,959,000 | $963,152,000 | $803,342,000 | $269,769,000 | $174,373,000 | $52,248,000 | $22,521,000 | $3,844,591,000 | $3,049,505,000 | ' | $2,359,125,000 | $1,919,310,000 | $200,332,000 | $129,959,000 | $963,152,000 | $803,342,000 | $269,769,000 | $174,373,000 | $52,213,000 | $22,521,000 | $20,326,000 | ' | $18,900,000 | ' | $1,391,000 | ' | ' | ' | $35,000 | ' |
Covered loans | 448,418,000 | 543,327,000 | ' | 417,973,000 | 504,900,000 | 17,794,000 | 24,645,000 | 9,829,000 | 13,184,000 | ' | ' | 2,822,000 | 598,000 | 85,948,000 | 25,442,000 | ' | 65,739,000 | 20,843,000 | 8,758,000 | ' | 8,855,000 | 4,113,000 | ' | ' | 2,596,000 | 486,000 | 362,470,000 | 517,885,000 | 352,234,000 | 484,057,000 | 9,036,000 | 24,645,000 | 974,000 | 9,071,000 | 226,000 | 112,000 |
Total gross loans and leases | 4,313,335,000 | 3,592,832,000 | ' | 2,795,998,000 | 2,424,210,000 | 219,517,000 | 154,604,000 | 972,981,000 | 816,526,000 | 269,769,000 | 174,373,000 | 55,070,000 | 23,119,000 | 3,930,539,000 | 3,074,947,000 | ' | 2,424,864,000 | 1,940,153,000 | 209,090,000 | 129,959,000 | 972,007,000 | 807,455,000 | 269,769,000 | 174,373,000 | 54,809,000 | 23,007,000 | 382,796,000 | 517,885,000 | 371,134,000 | 484,057,000 | 10,427,000 | 24,645,000 | 974,000 | 9,071,000 | 261,000 | 112,000 |
Fair Value of loans acquired | ' | ' | -44,146,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross contractual amount | ' | ' | 84,817,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated contractual cash flows not expected to be collected | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LOANS_AND_LEASES_Details_3
LOANS AND LEASES (Details 3) (Non-PCI Loans and Leases, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Loan on Non-Covered Loans and Leases: | ' | ' | ' |
Balance at the beginning of the period | $72,119 | $93,783 | $104,328 |
Charge-offs | -11,159 | -13,070 | -28,560 |
Recoveries | 6,856 | 3,406 | 4,715 |
Provision | ' | -12,000 | 13,300 |
Balance at the end of the period | 67,816 | 72,119 | 93,783 |
Allowance for Loan Losses | ' | ' | ' |
Allowance for Loan on Non-Covered Loans and Leases: | ' | ' | ' |
Balance at the beginning of the period | 65,899 | 85,313 | 98,653 |
Charge-offs | -11,159 | -13,070 | -28,560 |
Recoveries | 6,856 | 3,406 | 4,715 |
Provision | -1,355 | -9,750 | 10,505 |
Balance at the end of the period | 60,241 | 65,899 | 85,313 |
Reserve for Unfunded Loan Commitments | ' | ' | ' |
Allowance for Loan on Non-Covered Loans and Leases: | ' | ' | ' |
Balance at the beginning of the period | 6,220 | 8,470 | 5,675 |
Provision | 1,355 | -2,250 | 2,795 |
Balance at the end of the period | $7,575 | $6,220 | $8,470 |
LOANS_AND_LEASES_Details_4
LOANS AND LEASES (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Loan and Lease Losses: | ' | ' |
Balance, beginning of period | $91,968 | $116,588 |
Charge-offs | -11,225 | -17,457 |
Recoveries | 6,856 | 3,406 |
Provision (negative provision) | -5,565 | -10,569 |
Balance, end of period | 82,034 | 91,968 |
Loans and Leases: | ' | ' |
Total gross loans and leases | 4,313,335 | 3,592,832 |
Real estate mortgage | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | 2,795,998 | 2,424,210 |
Real estate construction | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | 219,517 | 154,604 |
Commercial | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | 972,981 | 816,526 |
Leases | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | 269,769 | 174,373 |
Consumer | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | 55,070 | 23,119 |
Non-PCI Loans | ' | ' |
Allowance for Loan and Lease Losses: | ' | ' |
Balance, beginning of period | 65,899 | 85,313 |
Charge-offs | -11,159 | -13,070 |
Recoveries | 6,856 | 3,406 |
Provision (negative provision) | -1,355 | -9,750 |
Balance, end of period | 60,241 | 65,899 |
Amount of the allowance applicable to loans and leases: | ' | ' |
Individually evaluated for impairment | 7,600 | 12,988 |
Collectively evaluated for impairment | 52,641 | 52,911 |
Loans and Leases: | ' | ' |
Total gross loans and leases | 3,930,539 | 3,074,947 |
Individually evaluated for impairment | 88,422 | 148,050 |
Collectively evaluated for impairment | 3,842,117 | 2,926,897 |
Non-PCI Loans | Real estate mortgage | ' | ' |
Allowance for Loan and Lease Losses: | ' | ' |
Balance, beginning of period | 38,700 | 50,205 |
Charge-offs | -4,552 | -7,680 |
Recoveries | 2,507 | 1,598 |
Provision (negative provision) | -10,577 | -5,423 |
Balance, end of period | 26,078 | 38,700 |
Amount of the allowance applicable to loans and leases: | ' | ' |
Individually evaluated for impairment | 2,188 | 7,827 |
Collectively evaluated for impairment | 23,890 | 30,873 |
Loans and Leases: | ' | ' |
Total gross loans and leases | 2,424,864 | 1,940,153 |
Individually evaluated for impairment | 62,276 | 107,198 |
Collectively evaluated for impairment | 2,362,588 | 1,832,955 |
Non-PCI Loans | Real estate construction | ' | ' |
Allowance for Loan and Lease Losses: | ' | ' |
Balance, beginning of period | 3,221 | 8,697 |
Charge-offs | ' | -492 |
Recoveries | 1,654 | 49 |
Provision (negative provision) | -577 | -5,033 |
Balance, end of period | 4,298 | 3,221 |
Amount of the allowance applicable to loans and leases: | ' | ' |
Individually evaluated for impairment | 169 | 371 |
Collectively evaluated for impairment | 4,129 | 2,850 |
Loans and Leases: | ' | ' |
Total gross loans and leases | 209,090 | 129,959 |
Individually evaluated for impairment | 7,512 | 25,450 |
Collectively evaluated for impairment | 201,578 | 104,509 |
Non-PCI Loans | Commercial | ' | ' |
Allowance for Loan and Lease Losses: | ' | ' |
Balance, beginning of period | 20,759 | 23,643 |
Charge-offs | -6,295 | -4,580 |
Recoveries | 2,621 | 1,622 |
Provision (negative provision) | 6,609 | 74 |
Balance, end of period | 23,694 | 20,759 |
Amount of the allowance applicable to loans and leases: | ' | ' |
Individually evaluated for impairment | 5,003 | 4,525 |
Collectively evaluated for impairment | 18,691 | 16,234 |
Loans and Leases: | ' | ' |
Total gross loans and leases | 972,007 | 807,455 |
Individually evaluated for impairment | 17,300 | 14,530 |
Collectively evaluated for impairment | 954,707 | 792,925 |
Non-PCI Loans | Leases | ' | ' |
Allowance for Loan and Lease Losses: | ' | ' |
Balance, beginning of period | 1,493 | ' |
Charge-offs | -114 | -28 |
Provision (negative provision) | 1,848 | 1,521 |
Balance, end of period | 3,227 | 1,493 |
Amount of the allowance applicable to loans and leases: | ' | ' |
Collectively evaluated for impairment | 3,227 | 1,493 |
Loans and Leases: | ' | ' |
Total gross loans and leases | 269,769 | 174,373 |
Individually evaluated for impairment | 632 | 244 |
Collectively evaluated for impairment | 269,137 | 174,129 |
Non-PCI Loans | Consumer | ' | ' |
Allowance for Loan and Lease Losses: | ' | ' |
Balance, beginning of period | 1,726 | 2,768 |
Charge-offs | -198 | -290 |
Recoveries | 74 | 137 |
Provision (negative provision) | 1,342 | -889 |
Balance, end of period | 2,944 | 1,726 |
Amount of the allowance applicable to loans and leases: | ' | ' |
Individually evaluated for impairment | 240 | 265 |
Collectively evaluated for impairment | 2,704 | 1,461 |
Loans and Leases: | ' | ' |
Total gross loans and leases | 54,809 | 23,007 |
Individually evaluated for impairment | 702 | 628 |
Collectively evaluated for impairment | 54,107 | 22,379 |
PCI Loans | ' | ' |
Allowance for Loan and Lease Losses: | ' | ' |
Balance, beginning of period | 26,069 | 31,275 |
Charge-offs | -66 | -4,387 |
Provision (negative provision) | -4,210 | -819 |
Balance, end of period | 21,793 | 26,069 |
Amount of the allowance applicable to loans and leases: | ' | ' |
Acquired with deteriorated credit quality | 21,793 | 26,069 |
Loans and Leases: | ' | ' |
Total gross loans and leases | 382,796 | 517,885 |
Acquired with deteriorated credit quality | 382,796 | 517,885 |
PCI Loans | Real estate mortgage | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | 371,134 | 484,057 |
PCI Loans | Real estate construction | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | 10,427 | 24,645 |
PCI Loans | Commercial | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | 974 | 9,071 |
PCI Loans | Consumer | ' | ' |
Loans and Leases: | ' | ' |
Total gross loans and leases | $261 | $112 |
LOANS_AND_LEASES_Details_5
LOANS AND LEASES (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | $4,313,335 | $3,592,832 |
Real estate mortgage | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,795,998 | 2,424,210 |
Real estate construction | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 219,517 | 154,604 |
Commercial | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 972,981 | 816,526 |
Leases | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 269,769 | 174,373 |
Consumer | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 55,070 | 23,119 |
Non-PCI Loans | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 3,930,539 | 3,074,947 |
Non-PCI Loans | Real estate mortgage | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,424,864 | 1,940,153 |
Non-PCI Loans | Hospitality | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 180,553 | 181,144 |
Non-PCI Loans | SBA 504 | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 45,166 | 54,158 |
Non-PCI Loans | Other | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,199,145 | 1,704,851 |
Non-PCI Loans | Real estate construction | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 209,090 | 129,959 |
Non-PCI Loans | Residential | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 58,881 | 48,629 |
Non-PCI Loans | Commercial | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 150,209 | 81,330 |
Non-PCI Loans | Commercial | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 972,007 | 807,455 |
Non-PCI Loans | Collateralized | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 587,186 | 462,125 |
Non-PCI Loans | Unsecured | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 153,752 | 80,575 |
Non-PCI Loans | Asset-based | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 202,428 | 239,430 |
Non-PCI Loans | SBA 7(a) | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 28,641 | 25,325 |
Non-PCI Loans | Leases | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 269,769 | 174,373 |
Non-PCI Loans | Consumer | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 54,809 | 23,007 |
Non-PCI Loans | Nonclassified | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 3,803,228 | 2,970,893 |
Non-PCI Loans | Nonclassified | Real estate mortgage | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,342,951 | 1,871,947 |
Non-PCI Loans | Nonclassified | Hospitality | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 168,216 | 168,489 |
Non-PCI Loans | Nonclassified | SBA 504 | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 39,869 | 48,372 |
Non-PCI Loans | Nonclassified | Other | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,134,866 | 1,655,086 |
Non-PCI Loans | Nonclassified | Real estate construction | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 202,049 | 124,094 |
Non-PCI Loans | Nonclassified | Residential | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 58,131 | 46,591 |
Non-PCI Loans | Nonclassified | Commercial | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 143,918 | 77,503 |
Non-PCI Loans | Nonclassified | Commercial | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 938,693 | 778,956 |
Non-PCI Loans | Nonclassified | Collateralized | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 568,348 | 447,323 |
Non-PCI Loans | Nonclassified | Unsecured | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 151,896 | 77,670 |
Non-PCI Loans | Nonclassified | Asset-based | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 195,569 | 235,075 |
Non-PCI Loans | Nonclassified | SBA 7(a) | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 22,880 | 18,888 |
Non-PCI Loans | Nonclassified | Leases | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 269,137 | 174,129 |
Non-PCI Loans | Nonclassified | Consumer | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 50,398 | 21,767 |
Non-PCI Loans | Classified | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 127,311 | 104,054 |
Non-PCI Loans | Classified | Real estate mortgage | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 81,913 | 68,206 |
Non-PCI Loans | Classified | Hospitality | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 12,337 | 12,655 |
Non-PCI Loans | Classified | SBA 504 | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 5,297 | 5,786 |
Non-PCI Loans | Classified | Other | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 64,279 | 49,765 |
Non-PCI Loans | Classified | Real estate construction | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 7,041 | 5,865 |
Non-PCI Loans | Classified | Residential | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 750 | 2,038 |
Non-PCI Loans | Classified | Commercial | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 6,291 | 3,827 |
Non-PCI Loans | Classified | Commercial | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 33,314 | 28,499 |
Non-PCI Loans | Classified | Collateralized | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 18,838 | 14,802 |
Non-PCI Loans | Classified | Unsecured | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 1,856 | 2,905 |
Non-PCI Loans | Classified | Asset-based | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 6,859 | 4,355 |
Non-PCI Loans | Classified | SBA 7(a) | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 5,761 | 6,437 |
Non-PCI Loans | Classified | Leases | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 632 | 244 |
Non-PCI Loans | Classified | Consumer | ' | ' |
Credit risk rating categories for Non-PCI loans by portfolio segment and class | ' | ' |
Total gross loans and leases | $4,411 | $1,240 |
LOANS_AND_LEASES_Details_6
LOANS AND LEASES (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Total gross loans and leases | $4,313,335,000 | $3,592,832,000 |
Non-covered loans and leases that were greater than 90 days past due and still accruing interest | 0 | 0 |
Nonaccrual loans and leases, 30 to 89 days past due | 4,200,000 | 4,200,000 |
Nonaccrual loans, Current | 37,300,000 | 28,600,000 |
Real estate mortgage | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,795,998,000 | 2,424,210,000 |
Real estate construction | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Total gross loans and leases | 219,517,000 | 154,604,000 |
Commercial | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Total gross loans and leases | 972,981,000 | 816,526,000 |
Leases | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Total gross loans and leases | 269,769,000 | 174,373,000 |
Consumer | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Total gross loans and leases | 55,070,000 | 23,119,000 |
Non-PCI Loans | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 22,197,000 | 6,549,000 |
60-89 Days Past Due | 1,700,000 | 1,030,000 |
Greater Than 90 Days Past Due | 5,233,000 | 9,036,000 |
Total Past Due | 29,130,000 | 16,615,000 |
Current | 3,901,409,000 | 3,058,332,000 |
Total gross loans and leases | 3,930,539,000 | 3,074,947,000 |
Nonaccrual loans and leases | 46,800,000 | 41,800,000 |
Non-PCI Loans | Real estate mortgage | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 15,030,000 | 5,053,000 |
60-89 Days Past Due | 560,000 | 54,000 |
Greater Than 90 Days Past Due | 2,406,000 | 4,998,000 |
Total Past Due | 17,996,000 | 10,105,000 |
Current | 2,406,868,000 | 1,930,048,000 |
Total gross loans and leases | 2,424,864,000 | 1,940,153,000 |
Non-PCI Loans | Hospitality | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Current | 180,553,000 | 181,144,000 |
Total gross loans and leases | 180,553,000 | 181,144,000 |
Non-PCI Loans | SBA 504 | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 2,564,000 | 955,000 |
Greater Than 90 Days Past Due | ' | 1,727,000 |
Total Past Due | 2,564,000 | 2,682,000 |
Current | 42,602,000 | 51,476,000 |
Total gross loans and leases | 45,166,000 | 54,158,000 |
Non-PCI Loans | Other | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 12,466,000 | 4,098,000 |
60-89 Days Past Due | 560,000 | 54,000 |
Greater Than 90 Days Past Due | 2,406,000 | 3,271,000 |
Total Past Due | 15,432,000 | 7,423,000 |
Current | 2,183,713,000 | 1,697,428,000 |
Total gross loans and leases | 2,199,145,000 | 1,704,851,000 |
Non-PCI Loans | Real estate construction | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Greater Than 90 Days Past Due | 2,013,000 | 1,245,000 |
Total Past Due | 2,013,000 | 1,245,000 |
Current | 207,077,000 | 128,714,000 |
Total gross loans and leases | 209,090,000 | 129,959,000 |
Non-PCI Loans | Residential | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Current | 58,881,000 | 48,629,000 |
Total gross loans and leases | 58,881,000 | 48,629,000 |
Non-PCI Loans | Commercial | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Greater Than 90 Days Past Due | 2,013,000 | 1,245,000 |
Total Past Due | 2,013,000 | 1,245,000 |
Current | 148,196,000 | 80,085,000 |
Total gross loans and leases | 150,209,000 | 81,330,000 |
Non-PCI Loans | Commercial | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 1,322,000 | 1,248,000 |
60-89 Days Past Due | 1,004,000 | 843,000 |
Greater Than 90 Days Past Due | 570,000 | 2,549,000 |
Total Past Due | 2,896,000 | 4,640,000 |
Current | 969,111,000 | 802,815,000 |
Total gross loans and leases | 972,007,000 | 807,455,000 |
Non-PCI Loans | Collateralized | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 66,000 | 964,000 |
60-89 Days Past Due | 407,000 | 161,000 |
Greater Than 90 Days Past Due | 259,000 | 872,000 |
Total Past Due | 732,000 | 1,997,000 |
Current | 586,454,000 | 460,128,000 |
Total gross loans and leases | 587,186,000 | 462,125,000 |
Non-PCI Loans | Unsecured | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 83,000 | 3,000 |
60-89 Days Past Due | ' | 135,000 |
Greater Than 90 Days Past Due | 68,000 | 230,000 |
Total Past Due | 151,000 | 368,000 |
Current | 153,601,000 | 80,207,000 |
Total gross loans and leases | 153,752,000 | 80,575,000 |
Non-PCI Loans | Asset-based | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
Greater Than 90 Days Past Due | ' | 176,000 |
Total Past Due | ' | 176,000 |
Current | 202,428,000 | 239,254,000 |
Total gross loans and leases | 202,428,000 | 239,430,000 |
Non-PCI Loans | SBA 7(a) | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 1,173,000 | 281,000 |
60-89 Days Past Due | 597,000 | 547,000 |
Greater Than 90 Days Past Due | 243,000 | 1,271,000 |
Total Past Due | 2,013,000 | 2,099,000 |
Current | 26,628,000 | 23,226,000 |
Total gross loans and leases | 28,641,000 | 25,325,000 |
Non-PCI Loans | Leases | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 2,530,000 | 225,000 |
60-89 Days Past Due | 132,000 | 132,000 |
Greater Than 90 Days Past Due | 244,000 | 244,000 |
Total Past Due | 2,906,000 | 601,000 |
Current | 266,863,000 | 173,772,000 |
Total gross loans and leases | 269,769,000 | 174,373,000 |
Non-PCI Loans | Consumer | ' | ' |
Aging analysis of our loans and leases (excluding PCI loans) by portfolio segment and class | ' | ' |
30-59 Days Past Due | 3,315,000 | 23,000 |
60-89 Days Past Due | 4,000 | 1,000 |
Total Past Due | 3,319,000 | 24,000 |
Current | 51,490,000 | 22,983,000 |
Total gross loans and leases | $54,809,000 | $23,007,000 |
LOANS_AND_LEASES_Details_7
LOANS AND LEASES (Details 7) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | $4,313,335 | $3,592,832 |
Real estate mortgage | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,795,998 | 2,424,210 |
Real estate construction | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 219,517 | 154,604 |
Commercial | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 972,981 | 816,526 |
Leases | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 269,769 | 174,373 |
Consumer | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 55,070 | 23,119 |
Non-PCI Loans | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 3,930,539 | 3,074,947 |
Non-PCI Loans | Real estate mortgage | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,424,864 | 1,940,153 |
Non-PCI Loans | Hospitality | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 180,553 | 181,144 |
Non-PCI Loans | SBA 504 | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 45,166 | 54,158 |
Non-PCI Loans | Other | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,199,145 | 1,704,851 |
Non-PCI Loans | Real estate construction | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 209,090 | 129,959 |
Non-PCI Loans | Residential | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 58,881 | 48,629 |
Non-PCI Loans | Commercial | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 150,209 | 81,330 |
Non-PCI Loans | Commercial | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 972,007 | 807,455 |
Non-PCI Loans | Collateralized | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 587,186 | 462,125 |
Non-PCI Loans | Unsecured | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 153,752 | 80,575 |
Non-PCI Loans | Asset-based | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 202,428 | 239,430 |
Non-PCI Loans | SBA 7(a) | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 28,641 | 25,325 |
Non-PCI Loans | Leases | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 269,769 | 174,373 |
Non-PCI Loans | Consumer | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 54,809 | 23,007 |
Non-PCI Loans | Nonaccrual | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 46,774 | 41,762 |
Non-PCI Loans | Nonaccrual | Real estate mortgage | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 27,973 | 26,475 |
Non-PCI Loans | Nonaccrual | Hospitality | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 6,723 | 6,908 |
Non-PCI Loans | Nonaccrual | SBA 504 | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,602 | 2,982 |
Non-PCI Loans | Nonaccrual | Other | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 18,648 | 16,585 |
Non-PCI Loans | Nonaccrual | Real estate construction | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 3,219 | 3,772 |
Non-PCI Loans | Nonaccrual | Residential | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 389 | 1,057 |
Non-PCI Loans | Nonaccrual | Commercial | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,830 | 2,715 |
Non-PCI Loans | Nonaccrual | Commercial | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 14,556 | 10,846 |
Non-PCI Loans | Nonaccrual | Collateralized | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 9,991 | 4,462 |
Non-PCI Loans | Nonaccrual | Unsecured | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 458 | 2,027 |
Non-PCI Loans | Nonaccrual | Asset-based | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 1,070 | 176 |
Non-PCI Loans | Nonaccrual | SBA 7(a) | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 3,037 | 4,181 |
Non-PCI Loans | Nonaccrual | Leases | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 632 | 244 |
Non-PCI Loans | Nonaccrual | Consumer | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 394 | 425 |
Non-PCI Loans | Performing | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 3,883,765 | 3,033,185 |
Non-PCI Loans | Performing | Real estate mortgage | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,396,891 | 1,913,678 |
Non-PCI Loans | Performing | Hospitality | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 173,830 | 174,236 |
Non-PCI Loans | Performing | SBA 504 | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 42,564 | 51,176 |
Non-PCI Loans | Performing | Other | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 2,180,497 | 1,688,266 |
Non-PCI Loans | Performing | Real estate construction | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 205,871 | 126,187 |
Non-PCI Loans | Performing | Residential | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 58,492 | 47,572 |
Non-PCI Loans | Performing | Commercial | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 147,379 | 78,615 |
Non-PCI Loans | Performing | Commercial | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 957,451 | 796,609 |
Non-PCI Loans | Performing | Collateralized | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 577,195 | 457,663 |
Non-PCI Loans | Performing | Unsecured | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 153,294 | 78,548 |
Non-PCI Loans | Performing | Asset-based | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 201,358 | 239,254 |
Non-PCI Loans | Performing | SBA 7(a) | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 25,604 | 21,144 |
Non-PCI Loans | Performing | Leases | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | 269,137 | 174,129 |
Non-PCI Loans | Performing | Consumer | ' | ' |
Nonaccrual and performing loans by portfolio segment and class | ' | ' |
Total gross loans and leases | $54,415 | $22,582 |
LOANS_AND_LEASES_Details_8
LOANS AND LEASES (Details 8) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Nonaccrual Loans/Leases | $46,774,000 | $41,762,000 | ' |
Performing Restructured Loans | 41,648,000 | 106,288,000 | ' |
Loans and leases recorded investment | 88,422,000 | 148,050,000 | ' |
Commitments to lend on nonaccrual loans | 997,000 | ' | ' |
Commitments to lend on performing restructured loans | 7,000 | ' | ' |
Real estate mortgage | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Nonaccrual Loans/Leases | 27,973,000 | 26,475,000 | ' |
Performing Restructured Loans | 34,303,000 | 80,723,000 | ' |
Loans and leases recorded investment | 62,276,000 | 107,198,000 | ' |
Real estate construction | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Nonaccrual Loans/Leases | 3,219,000 | 3,772,000 | ' |
Performing Restructured Loans | 4,293,000 | 21,678,000 | ' |
Loans and leases recorded investment | 7,512,000 | 25,450,000 | ' |
Commercial | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Nonaccrual Loans/Leases | 14,556,000 | 10,846,000 | ' |
Performing Restructured Loans | 2,744,000 | 3,684,000 | ' |
Loans and leases recorded investment | 17,300,000 | 14,530,000 | ' |
Leases | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Nonaccrual Loans/Leases | 632,000 | 244,000 | ' |
Loans and leases recorded investment | 632,000 | 244,000 | ' |
Consumer | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Nonaccrual Loans/Leases | 394,000 | 425,000 | ' |
Performing Restructured Loans | 308,000 | 203,000 | ' |
Loans and leases recorded investment | 702,000 | 628,000 | ' |
Non-PCI Loans | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases recorded investment | 88,422,000 | 148,050,000 | ' |
Loans and leases unpaid principal balance | 113,813,000 | 163,815,000 | ' |
Loans and leases related allowance | 7,600,000 | 12,988,000 | ' |
Loans Weighted Average Recorded Investment | 73,711,000 | 129,832,000 | 118,068,000 |
Loans Interest Income Recognized | 1,976,000 | 4,724,000 | 3,716,000 |
Non-PCI Loans | Real estate mortgage | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases recorded investment | 62,276,000 | 107,198,000 | ' |
Loans and leases unpaid principal balance | 77,522,000 | 114,836,000 | ' |
Loans and leases related allowance | 2,188,000 | 7,827,000 | ' |
Loans Weighted Average Recorded Investment | 54,090,000 | 92,010,000 | 77,010,000 |
Loans Interest Income Recognized | 1,740,000 | 3,714,000 | 2,944,000 |
Non-PCI Loans | Hospitality | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 5,717,000 | 8,954,000 | ' |
Loans and leases with no related allowance recorded, recorded investment | 3,013,000 | ' | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 6,215,000 | 9,640,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 3,385,000 | ' | ' |
Loans and leases related allowance | 198,000 | 2,396,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 5,717,000 | 8,954,000 | 17,399,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 3,013,000 | ' | ' |
Loans With An Allowance Recorded, Interest Income Recognized | 81,000 | 80,000 | 622,000 |
Non-PCI Loans | SBA 504 | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 1,642,000 | 1,676,000 | ' |
Loans and leases with no related allowance recorded, recorded investment | 2,602,000 | 2,982,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 1,643,000 | 1,676,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 3,646,000 | 3,755,000 | ' |
Loans and leases related allowance | 230,000 | 324,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 1,642,000 | 827,000 | 895,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 2,601,000 | 1,472,000 | 1,916,000 |
Loans With An Allowance Recorded, Interest Income Recognized | 90,000 | 41,000 | 21,000 |
Non-PCI Loans | Other | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 15,937,000 | 58,364,000 | ' |
Loans and leases with no related allowance recorded, recorded investment | 33,365,000 | 35,222,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 16,571,000 | 60,262,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 46,062,000 | 39,503,000 | ' |
Loans and leases related allowance | 1,760,000 | 5,107,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 13,205,000 | 51,441,000 | 42,973,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 27,912,000 | 29,316,000 | 13,827,000 |
Loans With An Allowance Recorded, Interest Income Recognized | 509,000 | 2,070,000 | 1,623,000 |
Loans With No Related Allowance Recorded, Interest Income Recognized | 1,060,000 | 1,523,000 | 678,000 |
Non-PCI Loans | Real estate construction | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases recorded investment | 7,512,000 | 25,450,000 | ' |
Loans and leases unpaid principal balance | 11,951,000 | 29,138,000 | ' |
Loans and leases related allowance | 169,000 | 371,000 | ' |
Loans Weighted Average Recorded Investment | 6,894,000 | 25,450,000 | 23,410,000 |
Loans Interest Income Recognized | 88,000 | 831,000 | 554,000 |
Non-PCI Loans | Residential | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 778,000 | 1,303,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 778,000 | 1,330,000 | ' |
Loans and leases related allowance | 168,000 | 165,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 778,000 | 1,303,000 | 2,520,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | ' | ' | 611,000 |
Loans With An Allowance Recorded, Interest Income Recognized | 14,000 | 11,000 | 66,000 |
Non-PCI Loans | Other | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 1,250,000 | 6,723,000 | ' |
Loans and leases with no related allowance recorded, recorded investment | 5,484,000 | 17,424,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 1,250,000 | 6,723,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 9,923,000 | 21,085,000 | ' |
Loans and leases related allowance | 1,000 | 206,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 1,250,000 | 6,723,000 | 5,375,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 4,866,000 | 17,424,000 | 14,904,000 |
Loans With An Allowance Recorded, Interest Income Recognized | 63,000 | 231,000 | 113,000 |
Loans With No Related Allowance Recorded, Interest Income Recognized | 11,000 | 589,000 | 375,000 |
Non-PCI Loans | Commercial | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases recorded investment | 17,300,000 | 14,530,000 | ' |
Loans and leases unpaid principal balance | 22,843,000 | 18,858,000 | ' |
Loans and leases related allowance | 5,003,000 | 4,525,000 | ' |
Loans Weighted Average Recorded Investment | 11,896,000 | 11,623,000 | 17,123,000 |
Loans Interest Income Recognized | 138,000 | 172,000 | 191,000 |
Non-PCI Loans | Collateralized | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 4,377,000 | 2,477,000 | ' |
Loans and leases with no related allowance recorded, recorded investment | 6,700,000 | 3,657,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 4,692,000 | 2,731,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 9,924,000 | 4,994,000 | ' |
Loans and leases related allowance | 4,270,000 | 1,865,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 3,281,000 | 2,219,000 | 4,745,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 3,410,000 | 1,657,000 | 1,584,000 |
Loans With An Allowance Recorded, Interest Income Recognized | 29,000 | 48,000 | 66,000 |
Loans With No Related Allowance Recorded, Interest Income Recognized | 20,000 | 27,000 | ' |
Non-PCI Loans | Unsecured | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 801,000 | 2,396,000 | ' |
Loans and leases with no related allowance recorded, recorded investment | 179,000 | 156,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 829,000 | 3,121,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 247,000 | 163,000 | ' |
Loans and leases related allowance | 375,000 | 2,234,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 772,000 | 2,273,000 | 2,767,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 157,000 | 148,000 | 499,000 |
Loans With An Allowance Recorded, Interest Income Recognized | 33,000 | 20,000 | 24,000 |
Non-PCI Loans | Asset-based | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 1,070,000 | ' | ' |
Loans and leases with no related allowance recorded, recorded investment | ' | 176,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 1,070,000 | ' | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | ' | 176,000 | ' |
Loans and leases related allowance | 180,000 | ' | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 569,000 | ' | ' |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | ' | 132,000 | 14,000 |
Non-PCI Loans | SBA 7(a) | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 1,136,000 | 2,871,000 | ' |
Loans and leases with no related allowance recorded, recorded investment | 3,037,000 | 2,797,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 1,136,000 | 3,616,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 4,945,000 | 4,057,000 | ' |
Loans and leases related allowance | 178,000 | 426,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 1,136,000 | 2,593,000 | 1,761,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 2,571,000 | 2,601,000 | 5,753,000 |
Loans With An Allowance Recorded, Interest Income Recognized | 56,000 | 53,000 | 86,000 |
Loans With No Related Allowance Recorded, Interest Income Recognized | ' | 24,000 | 15,000 |
Non-PCI Loans | Leases | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with no related allowance recorded, recorded investment | 632,000 | 244,000 | ' |
Loans and leases recorded investment | 632,000 | 244,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 632,000 | 244,000 | ' |
Loans and leases unpaid principal balance | 632,000 | 244,000 | ' |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 245,000 | 224,000 | ' |
Loans Weighted Average Recorded Investment | 245,000 | 224,000 | ' |
Non-PCI Loans | Consumer | ' | ' | ' |
Impaired loans and leases by portfolio segment and class | ' | ' | ' |
Loans and leases with an allowance recorded, recorded investment | 424,000 | 466,000 | ' |
Loans and leases with no related allowance recorded, recorded investment | 278,000 | 162,000 | ' |
Loans and leases recorded investment | 702,000 | 628,000 | ' |
Loans With An Allowance Recorded, Unpaid Principal Balance | 471,000 | 506,000 | ' |
Loans and leases with no related allowance recorded, unpaid principal balance | 394,000 | 233,000 | ' |
Loans and leases unpaid principal balance | 865,000 | 739,000 | ' |
Loans and leases related allowance | 240,000 | 265,000 | ' |
Loans With An Allowance Recorded, Weighted Average Recorded Investment | 425,000 | 389,000 | 291,000 |
Loans With No Related Allowance Recorded, Weighted Average Recorded Investment | 161,000 | 136,000 | 234,000 |
Loans Weighted Average Recorded Investment | 586,000 | 525,000 | 525,000 |
Loans With An Allowance Recorded, Interest Income Recognized | 10,000 | 7,000 | ' |
Loans With No Related Allowance Recorded, Interest Income Recognized | ' | ' | 27,000 |
Loans Interest Income Recognized | $10,000 | $7,000 | $27,000 |
LOANS_AND_LEASES_Details_9
LOANS AND LEASES (Details 9) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | item | item | |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | 38 | 30 | 78 |
Pre-Modification Outstanding Recorded Investment | $25,046,000 | $26,851,000 | $80,832,000 |
Post-Modification Outstanding Recorded Investment | 25,046,000 | 25,830,000 | 80,639,000 |
Troubled debt restructurings that subsequently defaulted | ' | ' | ' |
Number of Loans | 6 | 3 | 7 |
Recorded Investment | 3,399,000 | 1,331,000 | 4,465,000 |
Charge-offs | 1,600,000 | 921,000 | 4,500,000 |
Recorded investment for defaulted troubled debt restructurings excluded | 0 | ' | ' |
SBA 504 | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | ' | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | ' | 1,680,000 | 619,000 |
Post-Modification Outstanding Recorded Investment | ' | 1,680,000 | 619,000 |
Other | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | 14 | 8 | 35 |
Pre-Modification Outstanding Recorded Investment | 16,223,000 | 14,861,000 | 56,201,000 |
Post-Modification Outstanding Recorded Investment | 16,223,000 | 13,840,000 | 56,008,000 |
Troubled debt restructurings that subsequently defaulted | ' | ' | ' |
Number of Loans | 2 | ' | 3 |
Recorded Investment | 1,844,000 | ' | 2,914,000 |
Hospitality | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | ' | ' | 1 |
Pre-Modification Outstanding Recorded Investment | ' | ' | 2,086,000 |
Post-Modification Outstanding Recorded Investment | ' | ' | 2,086,000 |
Residential | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 390,000 | ' | ' |
Post-Modification Outstanding Recorded Investment | 390,000 | ' | ' |
Other | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | ' | 3 | 6 |
Pre-Modification Outstanding Recorded Investment | ' | 6,919,000 | 14,906,000 |
Post-Modification Outstanding Recorded Investment | ' | 6,919,000 | 14,906,000 |
Troubled debt restructurings that subsequently defaulted | ' | ' | ' |
Number of Loans | ' | ' | 1 |
Recorded Investment | ' | ' | 1,492,000 |
Collateralized | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | 11 | 7 | 15 |
Pre-Modification Outstanding Recorded Investment | 5,618,000 | 1,652,000 | 2,780,000 |
Post-Modification Outstanding Recorded Investment | 5,618,000 | 1,652,000 | 2,780,000 |
Troubled debt restructurings that subsequently defaulted | ' | ' | ' |
Number of Loans | 1 | 2 | ' |
Recorded Investment | 419,000 | 458,000 | ' |
Unsecured | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | 5 | 5 | 4 |
Pre-Modification Outstanding Recorded Investment | 521,000 | 317,000 | 581,000 |
Post-Modification Outstanding Recorded Investment | 521,000 | 317,000 | 581,000 |
Troubled debt restructurings that subsequently defaulted | ' | ' | ' |
Number of Loans | 2 | ' | ' |
Recorded Investment | 66,000 | ' | ' |
Asset-based | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 2,032,000 | ' | ' |
Post-Modification Outstanding Recorded Investment | 2,032,000 | ' | ' |
Troubled debt restructurings that subsequently defaulted | ' | ' | ' |
Number of Loans | 1 | ' | ' |
Recorded Investment | 1,070,000 | ' | ' |
SBA 7(a) | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | 4 | 4 | 15 |
Pre-Modification Outstanding Recorded Investment | 137,000 | 1,216,000 | 3,515,000 |
Post-Modification Outstanding Recorded Investment | 137,000 | 1,216,000 | 3,515,000 |
Troubled debt restructurings that subsequently defaulted | ' | ' | ' |
Number of Loans | ' | 1 | 3 |
Recorded Investment | ' | 873,000 | 59,000 |
Consumer | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of Loans | 2 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | 125,000 | 206,000 | 144,000 |
Post-Modification Outstanding Recorded Investment | $125,000 | $206,000 | $144,000 |
LOANS_AND_LEASES_Details_10
LOANS AND LEASES (Details 10) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Composition of loans and leases | ' | ' | ' |
Total allowance for loans and lease losses | ($82,034) | ($91,968) | ($116,588) |
Total loans and leases, net | 4,230,318 | 3,498,329 | ' |
PCI Loans | ' | ' | ' |
Composition of loans and leases | ' | ' | ' |
Total gross loans and leases | 428,251 | 568,836 | ' |
Total discount | -45,455 | -50,951 | ' |
Total allowance for loans and lease losses | -21,793 | -26,069 | -31,275 |
Total loans and leases, net | 361,003 | 491,816 | ' |
Total gross loans and leases (as a percent) | 100.00% | 100.00% | ' |
PCI Loans | Real estate mortgage | ' | ' | ' |
Composition of loans and leases | ' | ' | ' |
Total gross loans and leases | 412,791 | 534,378 | ' |
Total gross loans and leases (as a percent) | 96.00% | 94.00% | ' |
PCI Loans | Real estate construction | ' | ' | ' |
Composition of loans and leases | ' | ' | ' |
Total gross loans and leases | 12,015 | 23,220 | ' |
Total gross loans and leases (as a percent) | 3.00% | 4.00% | ' |
PCI Loans | Commercial | ' | ' | ' |
Composition of loans and leases | ' | ' | ' |
Total gross loans and leases | 3,021 | 11,130 | ' |
Total gross loans and leases (as a percent) | 1.00% | 2.00% | ' |
PCI Loans | Consumer | ' | ' | ' |
Composition of loans and leases | ' | ' | ' |
Total gross loans and leases | $424 | $108 | ' |
LOANS_AND_LEASES_Details_11
LOANS AND LEASES (Details 11) (FCAL, USD $) | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | 31-May-13 | 31-May-13 | 31-May-13 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 |
Non-PCI Loans | Covered loans | Covered loans | Non-Covered loans | Non-Covered loans | ||
PCI Loans | PCI Loans | |||||
Summary of accretable yield | ' | ' | ' | ' | ' | ' |
Undiscounted contractual cash flows | $84,817 | $1,300,000 | $42,881 | ' | $41,936 | ' |
Undiscounted cash flows not expected to be collected (nonaccretable difference) | -32,387 | ' | -16,050 | ' | -16,337 | ' |
Undiscounted cash flows expected to be collected | 52,430 | ' | 26,831 | ' | 25,599 | ' |
Estimated fair value of loans acquired | -44,146 | 1,000,000 | -24,341 | 24,341 | -19,805 | 19,805 |
Acquired accrued interest receivable | -188 | ' | -66 | ' | -122 | ' |
Accretable yield | $8,096 | ' | $2,424 | ($2,424) | $5,672 | ($5,672) |
LOANS_AND_LEASES_Details_12
LOANS AND LEASES (Details 12) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | 31-May-13 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 |
FCAL | FCAL | Covered loans | Covered loans | Covered loans | Covered loans | Covered loans | Non-Covered loans | Non-Covered loans | Non-Covered loans | |
Non-PCI Loans | PCI Loans | PCI Loans | PCI Loans | FCAL | FCAL | PCI Loans | FCAL | FCAL | ||
PCI Loans | PCI Loans | |||||||||
Changes in carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the year | ' | ' | $491,816 | $674,058 | $879,486 | ' | ' | ' | ' | ' |
Addition from the FCAL acquisition | -44,146 | 1,000,000 | ' | ' | ' | -24,341 | 24,341 | ' | -19,805 | 19,805 |
Accretion | ' | ' | 44,304 | 49,562 | 65,282 | ' | ' | 2,376 | ' | ' |
Payments received | ' | ' | -223,994 | -232,623 | -257,440 | ' | ' | -1,855 | ' | ' |
Provision for credit losses | ' | ' | 4,210 | 819 | -13,270 | ' | ' | ' | ' | ' |
Balance at the end of the year | ' | ' | 340,677 | 491,816 | 674,058 | ' | ' | 20,326 | ' | ' |
Changes in accretable yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the year | ' | ' | -196,022 | -259,265 | -290,665 | ' | ' | ' | ' | ' |
Addition from the FCAL acquisition | 8,096 | ' | ' | ' | ' | 2,424 | -2,424 | ' | 5,672 | -5,672 |
Accretion | ' | ' | 44,304 | 49,562 | 65,282 | ' | ' | 2,376 | ' | ' |
Decrease (increase) in expected cash flows, net | ' | ' | 20,494 | 13,681 | -33,882 | ' | ' | -2,624 | ' | ' |
Balance at the end of the year | ' | ' | ($133,648) | ($196,022) | ($259,265) | ' | ' | ($5,920) | ' | ' |
LOANS_AND_LEASES_Details_13
LOANS AND LEASES (Details 13) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | $4,313,335 | $3,592,832 |
Real estate mortgage | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 2,795,998 | 2,424,210 |
Real estate construction | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 219,517 | 154,604 |
Commercial | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 972,981 | 816,526 |
Consumer | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 55,070 | 23,119 |
PCI Loans | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 382,796 | 517,885 |
PCI Loans | Real estate mortgage | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 371,134 | 484,057 |
PCI Loans | Real estate construction | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 10,427 | 24,645 |
PCI Loans | Commercial | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 974 | 9,071 |
PCI Loans | Consumer | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 261 | 112 |
Nonclassified | PCI Loans | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 221,060 | 341,072 |
Nonclassified | PCI Loans | Real estate mortgage | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 216,092 | 331,341 |
Nonclassified | PCI Loans | Real estate construction | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 4,399 | 6,311 |
Nonclassified | PCI Loans | Commercial | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 569 | 3,420 |
Classified | PCI Loans | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 161,736 | 176,813 |
Classified | PCI Loans | Real estate mortgage | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 155,042 | 152,716 |
Classified | PCI Loans | Real estate construction | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 6,028 | 18,334 |
Classified | PCI Loans | Commercial | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | 405 | 5,651 |
Classified | PCI Loans | Consumer | ' | ' |
Credit risk rating categories for PCI loans by portfolio segment | ' | ' |
Total gross loans and leases | $261 | $112 |
OTHER_REAL_ESTATE_OWNED_OREO_D
OTHER REAL ESTATE OWNED (OREO) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the beginning of the period | $56,414 | $81,918 | $81,414 |
Foreclosures | 15,416 | 40,207 | 68,683 |
Payments to third parties | 39 | 889 | 1,629 |
Provision for losses | -2,515 | -14,333 | -16,994 |
Reductions related to sales | -31,289 | -53,828 | -52,814 |
Balance, at the end of the period | 51,837 | 56,414 | 81,918 |
OREO Valuation Allowance Activity: | ' | ' | ' |
Balance, at the beginning of the period | 16,681 | 20,575 | 17,813 |
Provision for losses | 2,515 | 14,333 | 16,994 |
Selling costs | ' | 876 | 2,527 |
Due from the SBA | ' | ' | 108 |
Reductions related to sales | -7,882 | -19,103 | -16,867 |
Balance, at the end of the period | 11,314 | 16,681 | 20,575 |
APB | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Addition | ' | 1,561 | ' |
FCAL | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Addition | 13,772 | ' | ' |
Commercial real estate | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 15,753 | 13,319 | ' |
Construction and land development | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 35,063 | 38,596 | ' |
Multi-family | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 835 | 4,239 | ' |
Single family residence | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 186 | 260 | ' |
Non-Covered OREO | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the beginning of the period | 33,572 | 48,412 | 25,598 |
Foreclosures | 7,891 | 4,223 | 34,743 |
Payments to third parties | 39 | 889 | 1,619 |
Provision for losses | -818 | -3,820 | -5,026 |
Reductions related to sales | -7,975 | -17,693 | -8,522 |
Balance, at the end of the period | 42,801 | 33,572 | 48,412 |
OREO Valuation Allowance Activity: | ' | ' | ' |
Balance, at the beginning of the period | 5,418 | 9,534 | 13,831 |
Provision for losses | 818 | 3,820 | 5,026 |
Due from the SBA | ' | ' | 108 |
Reductions related to sales | -766 | -7,936 | -9,431 |
Balance, at the end of the period | 5,470 | 5,418 | 9,534 |
Non-Covered OREO | APB | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Addition | ' | 1,561 | ' |
Non-Covered OREO | FCAL | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Addition | 10,092 | ' | ' |
Non-Covered OREO | Commercial real estate | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 10,672 | 1,684 | ' |
Non-Covered OREO | Construction and land development | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 31,950 | 31,888 | ' |
Non-Covered OREO | Single family residence | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 179 | ' | ' |
Covered OREO | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the beginning of the period | 22,842 | 33,506 | 55,816 |
Foreclosures | 7,525 | 35,984 | 33,940 |
Payments to third parties | ' | ' | 10 |
Provision for losses | -1,697 | -10,513 | -11,968 |
Reductions related to sales | -23,314 | -36,135 | -44,292 |
Balance, at the end of the period | 9,036 | 22,842 | 33,506 |
OREO Valuation Allowance Activity: | ' | ' | ' |
Balance, at the beginning of the period | 11,263 | 11,041 | 3,982 |
Provision for losses | 1,697 | 10,513 | 11,968 |
Selling costs | ' | 876 | 2,527 |
Reductions related to sales | -7,116 | -11,167 | -7,436 |
Balance, at the end of the period | 5,844 | 11,263 | 11,041 |
Covered OREO | FCAL | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Addition | 3,680 | ' | ' |
Covered OREO | Commercial real estate | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 5,081 | 11,635 | ' |
Covered OREO | Construction and land development | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 3,113 | 6,708 | ' |
Covered OREO | Multi-family | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | 835 | 4,239 | ' |
Covered OREO | Single family residence | ' | ' | ' |
Roll Forward of OREO, net of the valuation allowance | ' | ' | ' |
Balance, at the end of the period | $7 | $260 | ' |
FDIC_LOSS_SHARING_ASSET_Detail
FDIC LOSS SHARING ASSET (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the FDIC loss sharing asset | ' | ' |
Balance, at the beginning of the period | $57,475 | $95,187 |
Addition from the FCAL acquisition | 17,241 | ' |
FDIC share of additional losses, net of recoveries | 4,969 | 6,169 |
Cash received from FDIC | -7,332 | -33,223 |
Net amortization | -26,829 | -10,658 |
Balance, at the end of the period | 45,524 | 57,475 |
FDIC loss sharing asset | ' | ' |
FDIC loss sharing asset | 45,524 | 57,475 |
True-up liability | 6,647 | ' |
Non-single family covered assets | 394,055 | ' |
Single family covered assets | 126,561 | ' |
Affinity | ' | ' |
Changes in the FDIC loss sharing asset | ' | ' |
Balance, at the end of the period | 9,732 | ' |
FDIC loss sharing asset | ' | ' |
FDIC loss sharing asset | 9,732 | ' |
Non-single family covered assets | 199,686 | ' |
Single family covered assets | 14,197 | ' |
Los Padres Bank | ' | ' |
Changes in the FDIC loss sharing asset | ' | ' |
Balance, at the end of the period | 22,962 | ' |
FDIC loss sharing asset | ' | ' |
FDIC loss sharing asset | 22,962 | ' |
Non-single family covered assets | 133,201 | ' |
Single family covered assets | 74,367 | ' |
Western Commercial Bank | ' | ' |
Changes in the FDIC loss sharing asset | ' | ' |
Balance, at the end of the period | 1,709 | ' |
FDIC loss sharing asset | ' | ' |
FDIC loss sharing asset | 1,709 | ' |
True-up liability | 1,522 | ' |
Non-single family covered assets | 16,309 | ' |
San Luis Trust Bank | ' | ' |
Changes in the FDIC loss sharing asset | ' | ' |
Balance, at the end of the period | 11,121 | ' |
FDIC loss sharing asset | ' | ' |
FDIC loss sharing asset | 11,121 | ' |
True-up liability | 5,125 | ' |
Non-single family covered assets | 44,859 | ' |
Single family covered assets | $37,997 | ' |
PREMISES_AND_EQUIPMENT_NET_Det
PREMISES AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
PREMISES AND EQUIPMENT, NET | ' | ' | ' |
Premises and equipment, gross | $76,651,000 | $59,873,000 | ' |
Less: accumulated depreciation and amortization | -44,216,000 | -40,370,000 | ' |
Premises and equipment, net | 32,435,000 | 19,503,000 | ' |
Depreciation and amortization expense | 6,000,000 | 5,400,000 | 5,400,000 |
Estimated Lease Payments | ' | ' | ' |
2014 | 17,279,000 | ' | ' |
2015 | 15,055,000 | ' | ' |
2016 | 12,317,000 | ' | ' |
2017 | 9,824,000 | ' | ' |
2018 | 7,461,000 | ' | ' |
Thereafter | 12,449,000 | ' | ' |
Total | 74,385,000 | ' | ' |
Gross rental expense | 17,600,000 | 16,800,000 | 16,700,000 |
Total rental income | 750,000 | 505,000 | 587,000 |
Future minimum rental payments to be received under noncancelable subleases | 2,600,000 | ' | ' |
Land | ' | ' | ' |
PREMISES AND EQUIPMENT, NET | ' | ' | ' |
Premises and equipment, gross | 6,755,000 | 2,027,000 | ' |
Buildings | ' | ' | ' |
PREMISES AND EQUIPMENT, NET | ' | ' | ' |
Premises and equipment, gross | 12,725,000 | 5,578,000 | ' |
Furniture, fixtures and equipment | ' | ' | ' |
PREMISES AND EQUIPMENT, NET | ' | ' | ' |
Premises and equipment, gross | 31,080,000 | 28,272,000 | ' |
Leasehold improvements | ' | ' | ' |
PREMISES AND EQUIPMENT, NET | ' | ' | ' |
Premises and equipment, gross | $26,091,000 | $23,996,000 | ' |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deposit Category | ' | ' |
Interest checking deposits | $620,622,000 | $513,389,000 |
Money market deposits | 1,458,910,000 | 1,282,513,000 |
Savings deposits | 218,638,000 | 153,680,000 |
Time deposits under $100,000 | 225,360,000 | 274,622,000 |
Time deposits of $100,000 or more | 439,011,000 | 545,705,000 |
Total interest-bearing deposits | 2,962,541,000 | 2,769,909,000 |
Brokered time deposits, a part of the CDARS program | 49,400,000 | 37,700,000 |
Year of Maturity | ' | ' |
2014 | 517,283,000 | ' |
2015 | 53,619,000 | ' |
2016 | 76,920,000 | ' |
2017 | 10,166,000 | ' |
2018 | 6,313,000 | ' |
2019 | 70,000 | ' |
Total Time Deposits | 664,371,000 | ' |
Rate of interest | ' | ' |
2014 | 0.49% | ' |
2015 | 0.82% | ' |
2016 | 0.78% | ' |
2017 | 1.10% | ' |
2018 | 0.78% | ' |
2019 | 0.70% | ' |
Total | 0.56% | ' |
Time Deposit Under $100000 | ' | ' |
Year of Maturity | ' | ' |
2014 | 173,820,000 | ' |
2015 | 17,200,000 | ' |
2016 | 29,151,000 | ' |
2017 | 2,694,000 | ' |
2018 | 2,425,000 | ' |
2019 | 70,000 | ' |
Total Time Deposits | 225,360,000 | ' |
Time Deposit $100000 or More | ' | ' |
Year of Maturity | ' | ' |
2014 | 343,463,000 | ' |
2015 | 36,419,000 | ' |
2016 | 47,769,000 | ' |
2017 | 7,472,000 | ' |
2018 | 3,888,000 | ' |
Total Time Deposits | $439,011,000 | ' |
BORROWINGS_AND_SUBORDINATED_DE2
BORROWINGS AND SUBORDINATED DEBENTURES (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Jan. 28, 2014 | Jan. 28, 2013 | Dec. 31, 2012 | |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Borrowings | $113,726,000 | ' | ' | $12,591,000 |
Carrying value of securities pledged | 208,300,000 | ' | ' | 157,300,000 |
Net subordinated debentures | 132,645,000 | ' | ' | 108,250,000 |
FHLB secured lines of credit | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Overnight advances | 106,600,000 | ' | ' | 0 |
Fixed interest rates (as a percent) | 0.06% | ' | ' | ' |
Number of FHLB programs | 2 | ' | ' | ' |
Number of FHLB programs collateralized by loans | 1 | ' | ' | ' |
Carrying value of securities pledged | 10,900,000 | ' | ' | ' |
Remaining borrowing capacity | 1,200,000,000 | ' | ' | ' |
Non-recourse notes | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Non-recourse debt | 7,126,000 | ' | ' | 12,591,000 |
Fixed interest rates (as a percent) | 6.30% | ' | ' | 6.28% |
Weighted average remaining maturity of non-recourse debt | '2 years | ' | ' | ' |
Subordinated debentures | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Maturity period of debt from the date of issue | '30 years | ' | ' | ' |
Amount of trust preferred securities issued | 131,000,000 | ' | ' | ' |
Net subordinated debentures | 132,645,000 | ' | ' | 108,250,000 |
Gross subordinated debentures | 135,055,000 | ' | ' | 108,250,000 |
Unamortized discount | -2,410,000 | ' | ' | ' |
Prepayment penalties | 0 | ' | ' | ' |
Trust V | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Gross subordinated debentures | 10,310,000 | ' | ' | 10,310,000 |
Current Rate (as a percent) | ' | 3.34% | 3.41% | ' |
Rate Index | '3 month LIBOR | ' | ' | ' |
Spread on variable rate (as a percent) | 3.10% | ' | ' | ' |
Trust VI | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Gross subordinated debentures | 10,310,000 | ' | ' | 10,310,000 |
Current Rate (as a percent) | ' | 3.29% | 3.36% | ' |
Rate Index | '3 month LIBOR | ' | ' | ' |
Spread on variable rate (as a percent) | 3.05% | ' | ' | ' |
Trust CII | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Gross subordinated debentures | 5,155,000 | ' | ' | 5,155,000 |
Current Rate (as a percent) | ' | 3.19% | 3.26% | ' |
Rate Index | '3 month LIBOR | ' | ' | ' |
Spread on variable rate (as a percent) | 2.95% | ' | ' | ' |
Trust VII | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Gross subordinated debentures | 61,856,000 | ' | ' | 61,856,000 |
Current Rate (as a percent) | ' | 2.99% | 3.05% | ' |
Rate Index | '3 month LIBOR | ' | ' | ' |
Spread on variable rate (as a percent) | 2.75% | ' | ' | ' |
Trust CIII | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Gross subordinated debentures | 20,619,000 | ' | ' | 20,619,000 |
Current Rate (as a percent) | ' | 1.93% | 2.00% | ' |
Rate Index | '3 month LIBOR | ' | ' | ' |
Spread on variable rate (as a percent) | 1.69% | ' | ' | ' |
FCAL | Subordinated debentures | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Gross subordinated debentures | 26,800,000 | ' | ' | ' |
FCAL | Trust FCCI | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Gross subordinated debentures | 16,495,000 | ' | ' | ' |
Current Rate (as a percent) | ' | 1.84% | ' | ' |
Rate Index | '3 month LIBOR | ' | ' | ' |
Spread on variable rate (as a percent) | 1.60% | ' | ' | ' |
FCAL | Trust FCBI | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Gross subordinated debentures | 10,310,000 | ' | ' | ' |
Current Rate (as a percent) | ' | 1.79% | ' | ' |
Rate Index | '3 month LIBOR | ' | ' | ' |
Spread on variable rate (as a percent) | 1.55% | ' | ' | ' |
Bank | Federal Reserve Bank FRBSF | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Borrowing capacity | 563,600,000 | ' | ' | ' |
Construction and commercial loans pledged as collateral | 702,600,000 | ' | ' | ' |
Amount outstanding under line of credit | 0 | ' | ' | 0 |
Bank | Unsecured lines of credit | ' | ' | ' | ' |
Borrowings, subordinated debentures and brokered deposits | ' | ' | ' | ' |
Borrowing capacity | 80,000,000 | ' | ' | 80,000,000 |
Un-used commitment fees | 0.00% | ' | ' | ' |
Amount outstanding under line of credit | $0 | ' | ' | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 11, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 23, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | Capital Source Merger-Related Litigation | Capital Source Merger-Related Litigation | Capital Source Merger-Related Litigation | Standby letters of credit | Standby letters of credit | |||||
item | California | Delaware | ||||||||
item | item | |||||||||
COMMITMENTS AND CONTINGENCIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total loan commitments to extend credit | ' | ' | $1,001,740,000 | $849,607,000 | ' | ' | ' | ' | ' | ' |
Commitments and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit commitments | ' | ' | ' | ' | ' | ' | ' | ' | 39,200,000 | 27,534,000 |
Expiration period of guarantees | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' |
Number of lawsuits | 14 | ' | ' | ' | ' | 11 | 5 | 6 | ' | ' |
Commitments to purchase equipment being acquired for lease to others | ' | ' | 8,475,000 | 4,399,000 | ' | ' | ' | ' | ' | ' |
Commitments to extend credit | ' | ' | 1,049,415,000 | 881,540,000 | ' | ' | ' | ' | ' | ' |
Commitment to contribute capital to miscellaneous investments | ' | ' | 11,000,000 | 10,800,000 | ' | ' | ' | ' | ' | ' |
Interpleader amounts on deposit | ' | ' | 99,884.79 | ' | 2,539,049 | ' | ' | ' | ' | ' |
Amount of claim awarded against defender | ' | $9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (Measured on a Recurring Basis:, USD $) | 12 Months Ended | ||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | ||
Government agency and government-sponsored enterprises residential mortgage-backed securities | Government agency and government-sponsored enterprises residential mortgage-backed securities | Covered private label CMOs | Covered private label CMOs | Municipal securities | Municipal securities | Corporate debt securities | Corporate debt securities | Government-sponsored enterprises debt securities | Other securities | Other securities | Other securities | Other securities | Government agency and government-sponsored enterprises residential mortgage-backed securities | Government agency and government-sponsored enterprises residential mortgage-backed securities | Municipal securities | Municipal securities | Corporate debt securities | Corporate debt securities | Government-sponsored enterprises debt securities | Other securities | Other securities | Covered private label CMOs | Covered private label CMOs | ||||||||||
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities at fair value | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets at fair value | ' | 1,494,745 | 1,355,385 | 900,061 | 909,536 | 37,904 | 44,684 | 436,658 | 348,041 | 82,707 | 42,365 | 9,872 | 27,543 | 10,759 | 507 | 8,985 | 507 | 8,985 | 1,456,334 | 1,301,716 | 900,061 | 909,536 | 436,658 | 348,041 | 82,707 | 42,365 | 9,872 | 27,036 | 1,774 | 37,904 | 44,684 | 37,904 | 44,684 |
Transfers of assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts transferred from Level 1 to Level 2 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts transferred from Level 2 to Level 1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts transferred in Level 3 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts transferred out of Level 3 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (Private label CMOs, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | ' | ' |
Balance at the beginning of the period | $44,684,000 | $45,149,000 | $50,437,000 |
Total realized in earnings | 1,938,000 | 340,000 | 2,097,000 |
Total unrealized gain (loss) in comprehensive income | -1,204,000 | 4,883,000 | -846,000 |
Net settlements | -7,514,000 | -5,688,000 | -6,539,000 |
Balance at the end of the period | 37,904,000 | 44,684,000 | 45,149,000 |
Other-than-temporary impairment loss | ' | $1,100,000 | ' |
Recurring basis | Level 3 | Minimum | ' | ' | ' |
Information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values | ' | ' | ' |
Voluntary annual prepayment speeds (as a percent) | 0.00% | ' | ' |
Annual default rates (as a percent) | 0.00% | ' | ' |
Loss severity rates (as a percent) | 0.00% | ' | ' |
Discount rates (as a percent) | 0.00% | ' | ' |
Recurring basis | Level 3 | Maximum | ' | ' | ' |
Information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values | ' | ' | ' |
Voluntary annual prepayment speeds (as a percent) | 34.40% | ' | ' |
Annual default rates (as a percent) | 42.50% | ' | ' |
Loss severity rates (as a percent) | 64.60% | ' | ' |
Discount rates (as a percent) | 11.10% | ' | ' |
Recurring basis | Level 3 | Weighted average | ' | ' | ' |
Information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values | ' | ' | ' |
Voluntary annual prepayment speeds (as a percent) | 5.90% | ' | ' |
Annual default rates (as a percent) | 3.00% | ' | ' |
Loss severity rates (as a percent) | 29.90% | ' | ' |
Discount rates (as a percent) | 5.20% | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Total gain (loss) on assets measured on a nonrecurring basis | ($2,239) | ($9,498) | ($36,450) |
Non-covered other real estate owned | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Total gain (loss) on assets measured on a nonrecurring basis | -726 | -2,824 | -4,381 |
Covered other real estate owned | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Total gain (loss) on assets measured on a nonrecurring basis | -319 | -1,096 | -9,275 |
Non-covered impaired loans | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Total gain (loss) on assets measured on a nonrecurring basis | -1,206 | -5,582 | -22,796 |
SBA loan servicing asset | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Total gain (loss) on assets measured on a nonrecurring basis | 12 | 4 | 2 |
Measured on a Non-Recurring Basis: | Total | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 52,570 | 116,045 | ' |
Measured on a Non-Recurring Basis: | Total | Non-covered other real estate owned | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 9,062 | 7,945 | ' |
Measured on a Non-Recurring Basis: | Total | Covered other real estate owned | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 1,815 | 4,893 | ' |
Measured on a Non-Recurring Basis: | Total | Non-PCI impaired loans | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 40,886 | 102,207 | ' |
Measured on a Non-Recurring Basis: | Total | SBA loan servicing asset | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 807 | 1,000 | ' |
Measured on a Non-Recurring Basis: | Level 2 | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 10,835 | 7,574 | ' |
Measured on a Non-Recurring Basis: | Level 2 | Non-covered other real estate owned | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 7,084 | ' | ' |
Measured on a Non-Recurring Basis: | Level 2 | Covered other real estate owned | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 1,700 | 2,599 | ' |
Measured on a Non-Recurring Basis: | Level 2 | Non-PCI impaired loans | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 2,051 | 4,975 | ' |
Measured on a Non-Recurring Basis: | Level 3 | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 41,735 | 108,471 | ' |
Measured on a Non-Recurring Basis: | Level 3 | Non-covered other real estate owned | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 1,978 | 7,945 | ' |
Measured on a Non-Recurring Basis: | Level 3 | Covered other real estate owned | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 115 | 2,294 | ' |
Measured on a Non-Recurring Basis: | Level 3 | Non-PCI impaired loans | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | 38,835 | 97,232 | ' |
Measured on a Non-Recurring Basis: | Level 3 | SBA loan servicing asset | ' | ' | ' |
Assets measured and recorded at fair value on a recurring and nonrecurring basis | ' | ' | ' |
Assets at fair value | $807 | $1,000 | ' |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | ||
Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | ||
OREO | Impaired loans excluding balances with $250,000 or less | SBA loan servicing asset | SBA loan servicing asset | SBA loan servicing asset | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Weighted average | Weighted average | ||||
Appraisals | Discounted cash flow | Discounted cash flow | OREO | Impaired loans excluding balances with $250,000 or less | SBA loan servicing asset | OREO | Impaired loans excluding balances with $250,000 or less | SBA loan servicing asset | OREO | Impaired loans excluding balances with $250,000 or less | ||||||
Appraisals | Discounted cash flow | Discounted cash flow | Appraisals | Discounted cash flow | Discounted cash flow | Appraisals | Discounted cash flow | |||||||||
Information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rates (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 4.06% | 9.63% | 30.00% | 8.81% | 13.42% | 13.00% | 6.29% |
Selling costs (as a percent) | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment speeds (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.40% | ' | ' | 16.34% | ' | ' |
Fair Value | ' | $41,735,000 | $108,471,000 | $2,093,000 | $37,672,000 | $807,000 | $1,000,000 | $807,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired loans with balances of $250,000 or less | $1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail4
FAIR VALUE MEASUREMENTS (Details 5) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Financial Assets: | ' | ' |
Interest-earning deposits in financial institutions | $50,998,000 | $75,393,000 |
Loans and leases, net | 4,230,318,000 | 3,498,329,000 |
Financial Liabilities: | ' | ' |
Time deposits | 664,371,000 | ' |
Other real estate owned | ' | ' |
Period of appraisals for Level 2 measurement | '12 months | ' |
Non-PCI Loans | ' | ' |
Financial Assets: | ' | ' |
Loans and leases, net | 3,869,315,000 | 3,006,513,000 |
Impaired loans (excluding PCI loans) | ' | ' |
Nonaccrual loans | 46,800,000 | 41,800,000 |
Amount of nonaccrual loans written down to fair values through charge-offs | 2,000,000 | ' |
Minimum | ' | ' |
Impaired loans (excluding PCI loans) | ' | ' |
Threshold of unpaid principal balance of non-purchased credit impaired nonaccrual loans for individual evaluation of impairment | 250,000 | ' |
Minimum | Non-PCI Loans | ' | ' |
Impaired loans (excluding PCI loans) | ' | ' |
Threshold of unpaid principal balance of non-purchased credit impaired nonaccrual loans for individual evaluation of impairment | 250,000 | ' |
Maximum | ' | ' |
Impaired loans (excluding PCI loans) | ' | ' |
Threshold of unpaid principal balance of non-purchased credit impaired nonaccrual loans for collective evaluation of impairment | 250,000 | ' |
Maximum | Non-PCI Loans | ' | ' |
Impaired loans (excluding PCI loans) | ' | ' |
Threshold of unpaid principal balance of non-purchased credit impaired nonaccrual loans for collective evaluation of impairment | 250,000 | ' |
Total | ' | ' |
Financial Assets: | ' | ' |
Cash and due from banks | 96,424,000 | 89,011,000 |
Interest-earning deposits in financial institutions | 50,998,000 | 75,393,000 |
Securities available-for-sale | 1,494,745,000 | 1,355,385,000 |
Investment in FHLB stock | 27,939,000 | 37,126,000 |
Loans and leases, net | 4,231,078,000 | 3,551,674,000 |
SBA loan servicing asset | 807,000 | 1,000,000 |
Financial Liabilities: | ' | ' |
Demand, money market, interest checking and savings deposits | 4,616,616,000 | 3,888,794,000 |
Time deposits | 665,148,000 | 823,912,000 |
Borrowings | 113,726,000 | 12,611,000 |
Subordinated debentures | 132,498,000 | 108,186,000 |
Level 1 | ' | ' |
Financial Assets: | ' | ' |
Cash and due from banks | 96,424,000 | 89,011,000 |
Interest-earning deposits in financial institutions | 50,998,000 | 75,393,000 |
Securities available-for-sale | 507,000 | 8,985,000 |
Financial Liabilities: | ' | ' |
Borrowings | 106,600,000 | ' |
Level 2 | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 1,456,334,000 | 1,301,716,000 |
Investment in FHLB stock | 27,939,000 | 37,126,000 |
Loans and leases, net | 2,051,000 | 4,975,000 |
Financial Liabilities: | ' | ' |
Demand, money market, interest checking and savings deposits | 4,616,616,000 | 3,888,794,000 |
Time deposits | 665,148,000 | 823,912,000 |
Borrowings | 7,126,000 | 12,611,000 |
Subordinated debentures | 132,498,000 | 108,186,000 |
Level 3 | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 37,904,000 | 44,684,000 |
Loans and leases, net | 4,229,027,000 | 3,546,699,000 |
SBA loan servicing asset | 807,000 | 1,000,000 |
Carrying or Contract Amount | ' | ' |
Financial Assets: | ' | ' |
Cash and due from banks | 96,424,000 | 89,011,000 |
Interest-earning deposits in financial institutions | 50,998,000 | 75,393,000 |
Securities available-for-sale | 1,494,745,000 | 1,355,385,000 |
Investment in FHLB stock | 27,939,000 | 37,126,000 |
Loans and leases, net | 4,230,318,000 | 3,498,329,000 |
SBA loan servicing asset | 807,000 | 1,000,000 |
Financial Liabilities: | ' | ' |
Demand, money market, interest checking and savings deposits | 4,616,616,000 | 3,888,794,000 |
Time deposits | 664,371,000 | 820,327,000 |
Borrowings | 113,726,000 | 12,591,000 |
Subordinated debentures | $132,645,000 | $108,250,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Income Tax (Expense) Benefit: | ' | ' | ' |
Federal | ($29,591) | ($24,177) | ($15,129) |
State | -7,667 | -1,825 | -9,562 |
Total current income tax expense | -37,258 | -26,002 | -24,691 |
Deferred Income Tax (Expense) Benefit: | ' | ' | ' |
Federal | 9,099 | -2,550 | -11,726 |
State | -1,586 | -8,143 | -383 |
Total deferred income tax expense | 7,513 | -10,693 | -12,109 |
Recorded income tax expense | -29,745 | -36,695 | -36,800 |
Applicable Federal statutory income tax rate (as a percent) | 35.00% | ' | ' |
Reconciliation of the recorded income tax benefit (expense) | ' | ' | ' |
Computed expected income tax expense benefit at Federal statutory rate | -26,201 | -32,724 | -30,626 |
State tax expense, net of federal tax benefit | -6,014 | -6,479 | -6,464 |
Tax-exempt interest benefit | 3,979 | 1,847 | 406 |
Increase in cash surrender value of life insurance | 407 | 442 | 504 |
Tax credits | 2,480 | 1,313 | 556 |
Nondeductible employer compensation | -4,730 | -322 | -572 |
Nondeductible acquisition-related expense | -1,196 | -532 | ' |
Acquisition-related securities gain | 1,828 | ' | ' |
Other, net | -298 | -240 | -604 |
Recorded income tax expense | ($29,745) | ($36,695) | ($36,800) |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES | ' | ' |
Net income taxes receivable included in other assets | $39,600,000 | $30,000,000 |
Federal | ' | ' |
Operating loss carryforwards | ' | ' |
Unused net operating loss carryforwards | 34,000 | ' |
State | ' | ' |
Operating loss carryforwards | ' | ' |
Unused net operating loss carryforwards | $658,000 | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Deferred Tax Assets: | ' | ' | ' |
Book allowance for loan losses in excess of tax specific charge-offs | $45,840 | $31,602 | ' |
Interest on nonaccrual loans | 444 | 473 | ' |
Deferred compensation | 4,541 | 3,727 | ' |
Premises and equipment, principally due to differences in depreciation | 3,643 | 2,457 | ' |
OREO valuation allowance | 9,784 | 7,398 | ' |
Assets acquired in FDIC-assisted acquisition | 16,375 | 19,170 | ' |
State tax benefit | 2,368 | 247 | ' |
Accrued liabilities | 16,629 | 10,126 | ' |
Other | 7,846 | 10,934 | ' |
Goodwill | 6,595 | 3,846 | ' |
Deferred loan fees and costs | 378 | ' | ' |
Unrealized loss on securities available-for-sale | 2,424 | ' | ' |
Gross deferred tax assets | 116,867 | 89,980 | ' |
Deferred Tax Liabilities: | ' | ' | ' |
Core deposit and customer relationship intangibles | 6,022 | 5,004 | ' |
Deferred loan fees and costs | ' | 296 | ' |
Unrealized gain on securities available-for-sale | ' | 23,824 | ' |
FHLB stock and dividends | 7,123 | 7,557 | ' |
Unrealized income from FDIC-assisted acquisition | 24,086 | 23,614 | ' |
Gross deferred tax liabilities | 37,231 | 60,295 | ' |
Total net deferred tax asset | 79,636 | 29,685 | ' |
Unrecognized net tax benefit | $0 | $0 | $0 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings from continuing operations | $3,447 | $24,140 | $4,396 | $13,494 | ' | ' | ' | ' | $45,477 | $56,801 | $50,704 |
Less: earnings allocated to unvested restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | -1,096 | -1,845 | -2,072 |
Net earnings from continuing operations allocated to common shares | ' | ' | ' | ' | ' | ' | ' | ' | 44,381 | 54,956 | 48,632 |
Net loss from discontinued operations allocated to common shares | ' | ' | ' | ' | ' | ' | ' | ' | -348 | ' | ' |
Net earnings allocated to common shares | ' | ' | ' | ' | ' | ' | ' | ' | 44,033 | 54,956 | 48,632 |
Weighted-average basic shares and unvested restricted stock outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 42,506 | 37,370 | 37,142 |
Less: weighted-average unvested restricted stock outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -1,683 | -1,685 | -1,651 |
Weighted-average basic shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 40,823 | 35,685 | 35,491 |
Net earnings from continuing operations (in dollars per share) | $0.07 | $0.53 | $0.11 | $0.37 | ' | ' | ' | ' | $1.09 | $1.54 | $1.37 |
Net loss from discontinuing operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.01) | ' | ' |
Net earnings (in dollars per share) | $0.06 | $0.53 | $0.11 | $0.37 | $0.54 | $0.43 | $0.42 | $0.14 | $1.08 | $1.54 | $1.37 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings from continuing operations allocated to common shares | ' | ' | ' | ' | ' | ' | ' | ' | 44,381 | 54,956 | 48,632 |
Net loss from discontinued operations allocated to common shares | ' | ' | ' | ' | ' | ' | ' | ' | -348 | ' | ' |
Net earnings allocated to common shares | ' | ' | ' | ' | ' | ' | ' | ' | $44,033 | $54,956 | $48,632 |
Weighted-average basic shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 40,823 | 35,685 | 35,491 |
Net earnings from continuing operations (in dollars per share) | $0.07 | $0.53 | $0.11 | $0.37 | ' | ' | ' | ' | $1.09 | $1.54 | $1.37 |
Net loss from discontinuing operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.01) | ' | ' |
Net earnings (in dollars per share) | $0.06 | $0.53 | $0.11 | $0.37 | $0.54 | $0.43 | $0.42 | $0.14 | $1.08 | $1.54 | $1.37 |
STOCK_COMPENSATION_PLANS_Detai
STOCK COMPENSATION PLANS (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Jan. 13, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Non-employee directors | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | ||||
Stock Compensation Plans | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares authorized under the 2003 Plan | ' | ' | 6,500,000 | ' | ' | ' | ' | ' |
Number of common shares approved for issuance | ' | ' | ' | 12,742 | ' | ' | ' | ' |
Expenses charged to other noninterest expense | ' | ' | ' | $361,000 | ' | ' | ' | ' |
Number of shares available for grant under the 2003 Plan | ' | 3,927,147 | 1,433,647 | ' | ' | ' | ' | ' |
Additional number of common shares authorized under the 2003 Plan | 9,000,000 | ' | ' | ' | ' | ' | ' | ' |
Pre-tax charge related to accelerated vesting of restricted stock | ' | ' | ' | ' | 12,400,000 | ' | ' | ' |
After tax charge related to accelerated vesting of restricted stock | ' | ' | ' | ' | 12,200,000 | ' | ' | ' |
Additional compensation and tax expense related to change in control payments that would incur at consummation of CapitalSource merger | ' | ' | ' | ' | ' | 21,000,000 | ' | ' |
Unvested restricted stock, Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | 1,216,524 | ' | ' | 1,698,281 | 1,675,730 | 1,230,582 |
Granted (in shares) | ' | ' | ' | ' | ' | 673,900 | 226,400 | 692,900 |
Shares issued by the Company upon vesting (in shares) | ' | ' | ' | ' | ' | -819,461 | -195,871 | -203,174 |
Forfeited (in shares) | ' | ' | ' | ' | ' | -336,196 | -7,978 | -44,578 |
Balance at the end of the period (in shares) | ' | ' | 1,216,524 | ' | 1,216,524 | 1,216,524 | 1,698,281 | 1,675,730 |
Unvested restricted stock, Weighted Average Fair Value On Grant Date | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | $30.68 | $30.53 | $35.86 |
Granted (in dollars per share) | ' | ' | ' | ' | ' | $29.06 | $23.77 | $20.50 |
Shares issued by the Company upon vesting (in dollars per share) | ' | ' | ' | ' | ' | $24.84 | $21.69 | $30.13 |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | $48.92 | $22.31 | $23.56 |
Balance at the end of the period (in dollars per share) | ' | ' | ' | ' | $28.69 | $28.69 | $30.68 | $30.53 |
Vesting date fair value of awards vested | ' | ' | ' | ' | ' | $30,900,000 | $4,500,000 | $3,700,000 |
STOCK_COMPENSATION_PLANS_Detai1
STOCK COMPENSATION PLANS (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | |
Time-based restricted stock | Time-based restricted stock | Time-based restricted stock | Time-based restricted stock | Time-based restricted stock | Performance-based restricted stock | Performance-based restricted stock vesting upon meeting of performance targets | Performance-based restricted stock vesting over three years upon meeting of performance targets | ||||||
Minimum | Maximum | ||||||||||||
Stock Compensation Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares outstanding | 1,216,524 | 1,216,524 | 1,698,281 | 1,675,730 | 1,230,582 | 609,074 | ' | ' | ' | ' | 607,450 | 505,944 | 101,506 |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' | '3 years |
Compensation expense | ' | ' | ' | ' | ' | $8.50 | $5.70 | $7.60 | ' | ' | ' | ' | ' |
Income tax benefit recognized related to the compensation expense | ' | ' | ' | ' | ' | 3.4 | 2.2 | 3.2 | ' | ' | ' | ' | ' |
Total unrecognized compensation expense | ' | ' | ' | ' | ' | $9.20 | ' | ' | ' | ' | ' | $17.50 | $2.40 |
Expected weighted-average period for recognition of compensation costs | ' | ' | ' | ' | ' | '1 year 6 months | ' | ' | ' | ' | ' | ' | ' |
Outstanding awards for which compensation expense not yet recognized (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 505,944 | ' | ' |
STOCK_COMPENSATION_PLANS_Detai2
STOCK COMPENSATION PLANS (Details 3) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Stock Compensation Plans | ' |
Number of shares outstanding | 1,216,524 |
Weighted Average Grant Date Fair Value | $51,361 |
Weighted Average Remaining Contractual Life | '2 years 1 month 6 days |
Closing stock price (in dollars per share) | $42.22 |
Time-based restricted stock | ' |
Stock Compensation Plans | ' |
Weighted Average Grant Date Fair Value | 25,715 |
Weighted Average Remaining Contractual Life | '1 year 6 months |
Time-based restricted stock | 2010 | ' |
Stock Compensation Plans | ' |
Number of shares outstanding | 56,884 |
Outstanding awards (in dollars per share) | $19.79 |
Weighted Average Grant Date Fair Value | 2,402 |
Weighted Average Remaining Contractual Life | '2 months 12 days |
Time-based restricted stock | 2011 | ' |
Stock Compensation Plans | ' |
Number of shares outstanding | 190,716 |
Outstanding awards (in dollars per share) | $20.30 |
Weighted Average Grant Date Fair Value | 8,052 |
Weighted Average Remaining Contractual Life | '1 year 4 months 24 days |
Time-based restricted stock | 2012 | ' |
Stock Compensation Plans | ' |
Number of shares outstanding | 213,050 |
Outstanding awards (in dollars per share) | $23.74 |
Weighted Average Grant Date Fair Value | 8,995 |
Weighted Average Remaining Contractual Life | '1 year 3 months 18 days |
Time-based restricted stock | 2013 | ' |
Stock Compensation Plans | ' |
Number of shares outstanding | 148,424 |
Outstanding awards (in dollars per share) | $29.87 |
Weighted Average Grant Date Fair Value | 6,266 |
Weighted Average Remaining Contractual Life | '2 years 3 months 18 days |
Performance-based restricted stock | ' |
Stock Compensation Plans | ' |
Weighted Average Grant Date Fair Value | 25,646 |
Weighted Average Remaining Contractual Life | '2 years 9 months 18 days |
Performance-based restricted stock | 2007 | ' |
Stock Compensation Plans | ' |
Number of shares outstanding | 205,000 |
Outstanding awards (in dollars per share) | $54.92 |
Weighted Average Grant Date Fair Value | 8,655 |
Weighted Average Remaining Contractual Life | '3 years 1 month 6 days |
Performance-based restricted stock | 2011 | ' |
Stock Compensation Plans | ' |
Number of shares outstanding | 291,759 |
Outstanding awards (in dollars per share) | $20.46 |
Weighted Average Grant Date Fair Value | 12,318 |
Weighted Average Remaining Contractual Life | '2 years 2 months 12 days |
Performance-based restricted stock | 2013 | ' |
Stock Compensation Plans | ' |
Number of shares outstanding | 110,691 |
Outstanding awards (in dollars per share) | $28.74 |
Weighted Average Grant Date Fair Value | $4,673 |
Weighted Average Remaining Contractual Life | '3 years 6 months |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
401 (K) Plans | ' | ' | ' |
Minimum hours of work required by the participants to participate in the plan | '1000 hours | ' | ' |
Minimum age of participants for eligibility to participate in the plan | '21 years | ' | ' |
Employee contribution limit as a percentage of annual compensation | 60.00% | ' | ' |
Expense related to contributions | $1,300,000 | $1,000,000 | $433,000 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of treasury shares purchased | ' | ' | ' | ' | ' | ' | ' | ' | 351,640 | 63,681 | 80,173 |
Weighted average price of treasury shares (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $38.50 | $23.17 | $18.27 |
Reclassification adjustments from accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of securities | ($272) | ' | ' | $409 | $1,239 | ' | ' | ' | $137 | $1,239 | ' |
Acquisition-related securities gain | ' | 5,222 | ' | ' | ' | ' | ' | ' | 5,222 | ' | ' |
Total before tax | 12,582 | 35,383 | 6,302 | 21,213 | 32,468 | 26,937 | 25,970 | 8,121 | 75,480 | 93,496 | 87,504 |
Income tax expense | -9,135 | -11,243 | -1,906 | -7,719 | -12,576 | -10,849 | -10,413 | -2,857 | -30,003 | -36,695 | -36,800 |
NET EARNINGS | 3,109 | 24,163 | 4,349 | 13,494 | 19,892 | 16,088 | 15,557 | 5,264 | 45,115 | 56,801 | 50,704 |
Unrealized gains (losses) on available-for-sale securities | Amount Reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustments from accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of securities | ' | ' | ' | ' | ' | ' | ' | ' | 137 | ' | ' |
Acquisition-related securities gain | ' | ' | ' | ' | ' | ' | ' | ' | 5,222 | ' | ' |
Total before tax | ' | ' | ' | ' | ' | ' | ' | ' | 5,359 | ' | ' |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -58 | ' | ' |
NET EARNINGS | ' | ' | ' | ' | ' | ' | ' | ' | $5,301 | ' | ' |
DIVIDEND_AVAILABILITY_AND_REGU2
DIVIDEND AVAILABILITY AND REGULATORY MATTERS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
DIVIDEND AVAILABILITY AND REGULATORY MATTERS | ' | ' |
Period of net earnings considered in declaring dividend without the approval of the DFI | '3 years | ' |
Dividends received from the Bank | $48,000,000 | ' |
Actual regulatory capital amounts and ratios for the Company and the Bank | ' | ' |
Deferred tax asset amounts in excess of calculated limit | 3,800,000 | ' |
Tier I capital (to average assets): | ' | ' |
Actual, Amount | 718,800,000 | 570,082,000 |
Actual, Ratio (as a percent) | 11.22% | 10.53% |
Well Capitalized Minimum Requirement, Amount | 320,405,000 | 270,694,000 |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 5.00% | 5.00% |
Excess Capital Amount | 398,395,000 | 299,388,000 |
Tier I capital (to risk-weighted assets): | ' | ' |
Actual, Amount | 718,800,000 | 570,082,000 |
Ratio (as a percent) | 15.12% | 15.17% |
Well Capitalized Minimum Requirement, Amount | 285,163,000 | 225,541,000 |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 6.00% | 6.00% |
Excess Capital Amount | 433,637,000 | 344,541,000 |
Total capital (to risk-weighted assets): | ' | ' |
Actual, Amount | 778,582,000 | 617,702,000 |
Actual, Ratio (as a percent) | 16.38% | 16.43% |
Well Capitalized Minimum Requirement, Amount | 475,271,000 | 375,901,000 |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 10.00% | 10.00% |
Excess Capital Amount | 303,311,000 | 241,801,000 |
Trust preferred securities included in tier 1 capital | ' | ' |
Trust preferred securities issued | 131,000,000 | ' |
Expected amount of trust preferred securities included in Tier 1 capital | 0 | ' |
Amount of trust preferred securities included in tier 1 capital | 131,000,000 | ' |
Excess consolidated total assets | 15,000,000,000 | ' |
Percentage of trust preferred securities currently outstanding that will be included in Tier 1 capital | 25.00% | ' |
Number of months for which cumulative net earnings are not sufficient for dividend payments due for those periods, requiring prior notification to FRB | '12 months | ' |
Minimum | ' | ' |
Tier I capital (to average assets): | ' | ' |
Actual, Ratio (as a percent) | 4.00% | ' |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 5.00% | ' |
Tier I capital (to risk-weighted assets): | ' | ' |
Ratio (as a percent) | 4.00% | ' |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 6.00% | ' |
Total capital (to risk-weighted assets): | ' | ' |
Actual, Ratio (as a percent) | 8.00% | ' |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 10.00% | ' |
Maximum | ' | ' |
Trust preferred securities included in tier 1 capital | ' | ' |
Trust preferred securities included in tier 1 capital, expressed as a percentage of the sum of all core capital elements | 25.00% | ' |
Pacific Western Bank | ' | ' |
Actual regulatory capital amounts and ratios for the Company and the Bank | ' | ' |
Deferred tax asset amounts in excess of calculated limit | 3,300,000 | ' |
Tier I capital (to average assets): | ' | ' |
Actual, Amount | 690,440,000 | 528,151,000 |
Actual, Ratio (as a percent) | 10.79% | 9.78% |
Well Capitalized Minimum Requirement, Amount | 319,999,000 | 269,901,000 |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 5.00% | 5.00% |
Excess Capital Amount | 370,441,000 | 258,250,000 |
Tier I capital (to risk-weighted assets): | ' | ' |
Actual, Amount | 690,400,000 | 528,151,000 |
Ratio (as a percent) | 14.54% | 14.10% |
Well Capitalized Minimum Requirement, Amount | 284,825,000 | 224,778,000 |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 6.00% | 6.00% |
Excess Capital Amount | 405,575,000 | 303,373,000 |
Total capital (to risk-weighted assets): | ' | ' |
Actual, Amount | 750,152,000 | 575,614,000 |
Actual, Ratio (as a percent) | 15.80% | 15.36% |
Well Capitalized Minimum Requirement, Amount | 474,708,000 | 374,630,000 |
Well Capitalized Minimum Requirement, Ratio (as a percent) | 10.00% | 10.00% |
Excess Capital Amount | $275,444,000 | $200,984,000 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
item | ||||||||||||
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Loans and leases, net of unearned income | $4,312,352,000 | ' | ' | ' | $3,590,297,000 | ' | ' | ' | $4,312,352,000 | $3,590,297,000 | ' | ' |
Total allowance for loans and lease losses | -82,034,000 | ' | ' | ' | -91,968,000 | ' | ' | ' | -82,034,000 | -91,968,000 | -116,588,000 | ' |
Total loans and leases, net | 4,230,318,000 | ' | ' | ' | 3,498,329,000 | ' | ' | ' | 4,230,318,000 | 3,498,329,000 | ' | ' |
Goodwill | 208,743,000 | ' | ' | ' | 79,866,000 | ' | ' | ' | 208,743,000 | 79,866,000 | 39,141,000 | 47,301,000 |
Core deposit and customer relationship intangibles, net | 17,248,000 | ' | ' | ' | 14,723,000 | ' | ' | ' | 17,248,000 | 14,723,000 | ' | ' |
Total assets | 6,533,363,000 | ' | ' | ' | 5,463,658,000 | ' | ' | ' | 6,533,363,000 | 5,463,658,000 | ' | ' |
Total deposits | 5,280,987,000 | ' | ' | ' | 4,709,121,000 | ' | ' | ' | 5,280,987,000 | 4,709,121,000 | ' | ' |
Interest income | 83,856,000 | 85,158,000 | 71,631,000 | 69,269,000 | 73,702,000 | 75,123,000 | 72,890,000 | 74,400,000 | 309,914,000 | 296,115,000 | 295,284,000 | ' |
Other interest expense | -2,598,000 | -2,869,000 | -3,158,000 | -3,576,000 | -4,099,000 | -4,352,000 | -4,477,000 | -6,720,000 | -12,201,000 | -19,648,000 | -32,643,000 | ' |
Net interest income | 81,258,000 | 82,289,000 | 68,473,000 | 65,693,000 | 69,603,000 | 70,771,000 | 68,413,000 | 67,680,000 | 297,713,000 | 276,467,000 | 262,641,000 | ' |
Negative provision (provision) for credit losses | 1,338,000 | 4,167,000 | 1,842,000 | -3,137,000 | 4,333,000 | 2,141,000 | 271,000 | 6,074,000 | 4,210,000 | 12,819,000 | -26,570,000 | ' |
FDIC loss sharing income (expense), net | -10,593,000 | -7,032,000 | -5,410,000 | -3,137,000 | -6,022,000 | -367,000 | -102,000 | -3,579,000 | -26,172,000 | -10,070,000 | 7,776,000 | ' |
Acquisition-related securities gain | ' | 5,222,000 | ' | ' | ' | ' | ' | ' | 5,222,000 | ' | ' | ' |
Other noninterest income | ' | ' | ' | ' | ' | ' | ' | ' | 25,194,000 | 25,942,000 | 23,650,000 | ' |
Total noninterest income | -3,926,000 | 5,127,000 | 203,000 | 2,840,000 | 2,057,000 | 5,682,000 | 4,871,000 | 3,262,000 | 4,244,000 | 15,872,000 | 31,426,000 | ' |
Accelerated vesting of restricted stock | -12,420,000 | ' | ' | ' | ' | ' | ' | ' | -12,420,000 | ' | ' | ' |
OREO income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 1,503,000 | -10,931,000 | -10,676,000 | ' |
Intangible asset amortization | ' | ' | ' | ' | ' | ' | ' | ' | -5,402,000 | -6,326,000 | -8,428,000 | ' |
Acquisition and integration | -4,253,000 | -5,450,000 | -17,997,000 | -692,000 | -1,092,000 | -2,101,000 | -871,000 | -25,000 | -28,392,000 | -4,089,000 | -600,000 | ' |
Debt termination expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | -22,598,000 | ' | ' |
Other noninterest expense | ' | ' | ' | ' | ' | ' | ' | ' | -185,976,000 | -167,718,000 | -160,289,000 | ' |
Total noninterest expense | -66,088,000 | -56,200,000 | -64,216,000 | -44,183,000 | -43,525,000 | -51,657,000 | -47,585,000 | -68,895,000 | -230,687,000 | -211,662,000 | -179,993,000 | ' |
Earnings from continuing operations before income taxes | 12,582,000 | 35,383,000 | 6,302,000 | 21,213,000 | 32,468,000 | 26,937,000 | 25,970,000 | 8,121,000 | 75,480,000 | 93,496,000 | 87,504,000 | ' |
Income tax (expense) benefit | -9,135,000 | -11,243,000 | -1,906,000 | -7,719,000 | -12,576,000 | -10,849,000 | -10,413,000 | -2,857,000 | -30,003,000 | -36,695,000 | -36,800,000 | ' |
NET EARNINGS FROM CONTINUING OPERATIONS | 3,447,000 | 24,140,000 | 4,396,000 | 13,494,000 | ' | ' | ' | ' | 45,477,000 | 56,801,000 | 50,704,000 | ' |
Earnings (loss) from discontinued operations before income taxes | -578,000 | 39,000 | -81,000 | ' | ' | ' | ' | ' | -620,000 | ' | ' | ' |
Income tax (expense) benefit | 240,000 | -16,000 | 34,000 | ' | ' | ' | ' | ' | 258,000 | ' | ' | ' |
NET EARNINGS FROM DISCONTINUED OPERATIONS | -338,000 | 23,000 | -47,000 | ' | ' | ' | ' | ' | -362,000 | ' | ' | ' |
NET EARNINGS | 3,109,000 | 24,163,000 | 4,349,000 | 13,494,000 | 19,892,000 | 16,088,000 | 15,557,000 | 5,264,000 | 45,115,000 | 56,801,000 | 50,704,000 | ' |
FCAL | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-tax deductible addition from the FCAL acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 129,070,000 | ' | ' | ' |
Banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and leases, net of unearned income | 3,837,475,000 | ' | ' | ' | 3,175,165,000 | ' | ' | ' | 3,837,475,000 | 3,175,165,000 | ' | ' |
Total allowance for loans and lease losses | -75,498,000 | ' | ' | ' | -87,538,000 | ' | ' | ' | -75,498,000 | -87,538,000 | ' | ' |
Total loans and leases, net | 3,761,977,000 | ' | ' | ' | 3,087,627,000 | ' | ' | ' | 3,761,977,000 | 3,087,627,000 | ' | ' |
Goodwill | 183,065,000 | ' | ' | ' | 54,188,000 | ' | ' | ' | 183,065,000 | 54,188,000 | ' | ' |
Core deposit and customer relationship intangibles, net | 15,331,000 | ' | ' | ' | 12,151,000 | ' | ' | ' | 15,331,000 | 12,151,000 | ' | ' |
Total assets | 6,004,067,000 | ' | ' | ' | 4,991,927,000 | ' | ' | ' | 6,004,067,000 | 4,991,927,000 | ' | ' |
Total deposits | 5,302,822,000 | ' | ' | ' | 4,737,593,000 | ' | ' | ' | 5,302,822,000 | 4,737,593,000 | ' | ' |
Other interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -7,873,000 | -15,043,000 | -27,720,000 | ' |
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | 255,144,000 | 238,732,000 | 250,240,000 | ' |
Negative provision (provision) for credit losses | ' | ' | ' | ' | ' | ' | ' | ' | 8,079,000 | 14,585,000 | -26,520,000 | ' |
FDIC loss sharing income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -26,172,000 | -10,070,000 | 7,776,000 | ' |
Other noninterest income | ' | ' | ' | ' | ' | ' | ' | ' | 21,532,000 | 21,811,000 | 22,833,000 | ' |
Total noninterest income | ' | ' | ' | ' | ' | ' | ' | ' | -4,640,000 | 11,741,000 | 30,609,000 | ' |
Accelerated vesting of restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | -12,420,000 | ' | ' | ' |
OREO income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 1,503,000 | -10,931,000 | -10,676,000 | ' |
Intangible asset amortization | ' | ' | ' | ' | ' | ' | ' | ' | -4,748,000 | -5,898,000 | -8,264,000 | ' |
Acquisition and integration | ' | ' | ' | ' | ' | ' | ' | ' | 28,132,000 | 4,089,000 | 600,000 | ' |
Debt termination expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | -24,195,000 | ' | ' |
Other noninterest expense | ' | ' | ' | ' | ' | ' | ' | ' | -156,600,000 | -138,640,000 | -141,188,000 | ' |
Total noninterest expense | ' | ' | ' | ' | ' | ' | ' | ' | -200,397,000 | -183,753,000 | -160,728,000 | ' |
Earnings from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 58,186,000 | 81,305,000 | 93,601,000 | ' |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | -24,940,000 | -31,542,000 | -39,554,000 | ' |
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 33,246,000 | ' | ' | ' |
Earnings (loss) from discontinued operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -620,000 | ' | ' | ' |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 258,000 | ' | ' | ' |
NET EARNINGS FROM DISCONTINUED OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | -362,000 | ' | ' | ' |
NET EARNINGS | ' | ' | ' | ' | ' | ' | ' | ' | 32,884,000 | 49,763,000 | 54,047,000 | ' |
Asset Financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and leases, net of unearned income | 474,877,000 | ' | ' | ' | 415,132,000 | ' | ' | ' | 474,877,000 | 415,132,000 | ' | ' |
Total allowance for loans and lease losses | -6,536,000 | ' | ' | ' | -4,430,000 | ' | ' | ' | -6,536,000 | -4,430,000 | ' | ' |
Total loans and leases, net | 468,341,000 | ' | ' | ' | 410,702,000 | ' | ' | ' | 468,341,000 | 410,702,000 | ' | ' |
Goodwill | 25,678,000 | ' | ' | ' | 25,678,000 | ' | ' | ' | 25,678,000 | 25,678,000 | ' | ' |
Core deposit and customer relationship intangibles, net | 1,917,000 | ' | ' | ' | 2,572,000 | ' | ' | ' | 1,917,000 | 2,572,000 | ' | ' |
Total assets | 519,675,000 | ' | ' | ' | 451,557,000 | ' | ' | ' | 519,675,000 | 451,557,000 | ' | ' |
Other interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -532,000 | -884,000 | ' | ' |
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | 46,365,000 | 41,456,000 | 17,324,000 | ' |
Negative provision (provision) for credit losses | ' | ' | ' | ' | ' | ' | ' | ' | -3,869,000 | -1,766,000 | -50,000 | ' |
Other noninterest income | ' | ' | ' | ' | ' | ' | ' | ' | 3,558,000 | 4,017,000 | 660,000 | ' |
Total noninterest income | ' | ' | ' | ' | ' | ' | ' | ' | 3,558,000 | 4,017,000 | 660,000 | ' |
Intangible asset amortization | ' | ' | ' | ' | ' | ' | ' | ' | -654,000 | -428,000 | -164,000 | ' |
Other noninterest expense | ' | ' | ' | ' | ' | ' | ' | ' | -23,575,000 | -23,502,000 | -10,846,000 | ' |
Total noninterest expense | ' | ' | ' | ' | ' | ' | ' | ' | -24,229,000 | -23,930,000 | -11,010,000 | ' |
Earnings from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 21,825,000 | 19,777,000 | 6,924,000 | ' |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | -9,101,000 | -8,327,000 | -2,917,000 | ' |
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 12,724,000 | ' | ' | ' |
NET EARNINGS | ' | ' | ' | ' | ' | ' | ' | ' | 12,724,000 | 11,450,000 | 4,007,000 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 9,621,000 | ' | ' | ' | 20,174,000 | ' | ' | ' | 9,621,000 | 20,174,000 | ' | ' |
Total deposits | -21,835,000 | ' | ' | ' | -28,472,000 | ' | ' | ' | -21,835,000 | -28,472,000 | ' | ' |
Other interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -3,796,000 | -3,721,000 | -4,923,000 | ' |
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | -3,796,000 | -3,721,000 | -4,923,000 | ' |
Acquisition-related securities gain | ' | ' | ' | ' | ' | ' | ' | ' | 5,222,000 | ' | ' | ' |
Other noninterest income | ' | ' | ' | ' | ' | ' | ' | ' | 104,000 | 114,000 | 157,000 | ' |
Total noninterest income | ' | ' | ' | ' | ' | ' | ' | ' | 5,326,000 | 114,000 | 157,000 | ' |
Acquisition and integration | ' | ' | ' | ' | ' | ' | ' | ' | 260,000 | ' | ' | ' |
Debt termination expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,597,000 | ' | ' |
Other noninterest expense | ' | ' | ' | ' | ' | ' | ' | ' | -5,801,000 | -5,576,000 | -8,255,000 | ' |
Total noninterest expense | ' | ' | ' | ' | ' | ' | ' | ' | -6,061,000 | -3,979,000 | -8,255,000 | ' |
Earnings from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -4,531,000 | -7,586,000 | -13,021,000 | ' |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 4,038,000 | 3,174,000 | 5,671,000 | ' |
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | -493,000 | ' | ' | ' |
NET EARNINGS | ' | ' | ' | ' | ' | ' | ' | ' | -493,000 | -4,412,000 | -7,350,000 | ' |
Operating segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 309,914,000 | 296,115,000 | 295,284,000 | ' |
Operating segment | Banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 261,492,000 | 251,720,000 | 276,734,000 | ' |
Operating segment | Asset Financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 48,422,000 | 44,395,000 | 18,550,000 | ' |
Intersegment | Banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | 1,525,000 | 2,055,000 | 1,226,000 | ' |
Intersegment | Asset Financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | ($1,525,000) | ($2,055,000) | ($1,226,000) | ' |
CONDENSED_FINANCIAL_INFORMATIO2
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash and due from banks | $96,424 | $89,011 | ' | ' |
Other assets | 199,663 | 112,107 | ' | ' |
Total assets | 6,533,363 | 5,463,658 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Subordinated debentures | 132,645 | 108,250 | ' | ' |
Other liabilities | 73,884 | 44,575 | ' | ' |
Total liabilities | 5,724,270 | 4,874,537 | ' | ' |
Stockholders' equity | 809,093 | 589,121 | 546,203 | 478,797 |
Total liabilities and stockholders' equity | 6,533,363 | 5,463,658 | ' | ' |
Parent company | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and due from banks | 21,835 | 28,472 | ' | ' |
Investments in subsidiaries | 911,200 | 649,656 | ' | ' |
Other assets | 10,341 | 20,174 | ' | ' |
Total assets | 943,376 | 698,302 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Subordinated debentures | 132,645 | 108,250 | ' | ' |
Other liabilities | 1,638 | 931 | ' | ' |
Total liabilities | 134,283 | 109,181 | ' | ' |
Stockholders' equity | 809,093 | 589,121 | ' | ' |
Total liabilities and stockholders' equity | $943,376 | $698,302 | ' | ' |
CONDENSED_FINANCIAL_INFORMATIO3
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed statements of earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related securities gain | ' | $5,222 | ' | ' | ' | ' | ' | ' | $5,222 | ' | ' |
Dividends from Bank subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 1,604 | 446 | 173 |
Interest expense | 2,598 | 2,869 | 3,158 | 3,576 | 4,099 | 4,352 | 4,477 | 6,720 | 12,201 | 19,648 | 32,643 |
Earnings before income taxes and equity in undistributed earnings of subsidiaries | 12,582 | 35,383 | 6,302 | 21,213 | 32,468 | 26,937 | 25,970 | 8,121 | 75,480 | 93,496 | 87,504 |
Income tax (expense) benefit | -9,135 | -11,243 | -1,906 | -7,719 | -12,576 | -10,849 | -10,413 | -2,857 | -30,003 | -36,695 | -36,800 |
NET EARNINGS | 3,109 | 24,163 | 4,349 | 13,494 | 19,892 | 16,088 | 15,557 | 5,264 | 45,115 | 56,801 | 50,704 |
Parent company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed statements of earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related securities gain | ' | ' | ' | ' | ' | ' | ' | ' | 5,222 | ' | ' |
Debt termination income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,597 | ' |
Miscellaneous income | ' | ' | ' | ' | ' | ' | ' | ' | 104 | 114 | 157 |
Dividends from Bank subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 48,000 | 50,000 | 25,500 |
Total income | ' | ' | ' | ' | ' | ' | ' | ' | 53,326 | 51,711 | 25,657 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 3,796 | 3,721 | 4,923 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 6,061 | 5,576 | 8,255 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 9,857 | 9,297 | 13,178 |
Earnings before income taxes and equity in undistributed earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 43,469 | 42,414 | 12,479 |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 4,038 | 3,174 | 5,671 |
Earnings before equity in undistributed earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 47,507 | 45,588 | 18,150 |
Equity in undistributed earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -2,392 | 11,213 | 32,554 |
NET EARNINGS | ' | ' | ' | ' | ' | ' | ' | ' | $45,115 | $56,801 | $50,704 |
CONDENSED_FINANCIAL_INFORMATIO4
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | $3,109 | $24,163 | $4,349 | $13,494 | $19,892 | $16,088 | $15,557 | $5,264 | $45,115 | $56,801 | $50,704 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related securities gain | ' | -5,222 | ' | ' | ' | ' | ' | ' | -5,222 | ' | ' |
Change in other assets | ' | ' | ' | ' | ' | ' | ' | ' | 9,403 | -18,754 | -18,053 |
Tax effect included in stockholders' equity of restricted stock vesting | ' | ' | ' | ' | ' | ' | ' | ' | -2,133 | -283 | 937 |
Earned stock compensation | ' | ' | ' | ' | ' | ' | ' | ' | 21,246 | 5,999 | 7,896 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 50,252 | 117,980 | 170,273 |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash and cash equivalents acquired in acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | 273,013 | -87,098 | ' |
Purchases of securities available-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | -550,211 | -485,860 | -658,310 |
Net cash provided by investing activities | ' | ' | ' | ' | ' | ' | ' | ' | 412,939 | 170,921 | 99,065 |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of subordinated debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,558 | ' |
Tax effect included in stockholders' equity of restricted stock vesting | ' | ' | ' | ' | ' | ' | ' | ' | 2,133 | 283 | -937 |
Restricted stock surrendered | ' | ' | ' | ' | ' | ' | ' | ' | -13,537 | -1,475 | -1,465 |
Cash dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -41,006 | -28,787 | -7,626 |
Net cash used in financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -480,173 | -420,114 | -82,273 |
Net (decrease) increase in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | -16,982 | -131,213 | 187,065 |
Cash and cash equivalents at beginning of year | ' | ' | ' | 164,404 | ' | ' | ' | 295,617 | 164,404 | 295,617 | 108,552 |
Cash and cash equivalents at end of year | 147,422 | ' | ' | ' | 164,404 | ' | ' | ' | 147,422 | 164,404 | 295,617 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for First California Financial Group acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 242,268 | ' | ' |
Parent company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | ' | ' | ' | ' | ' | ' | ' | ' | 45,115 | 56,801 | 50,704 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related securities gain | ' | ' | ' | ' | ' | ' | ' | ' | -5,222 | ' | ' |
Change in other assets | ' | ' | ' | ' | ' | ' | ' | ' | 609 | -711 | 4,533 |
Change in liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 4,932 | -4,122 | 6,262 |
Tax effect included in stockholders' equity of restricted stock vesting | ' | ' | ' | ' | ' | ' | ' | ' | -364 | -102 | 501 |
Earned stock compensation | ' | ' | ' | ' | ' | ' | ' | ' | 441 | 715 | 3,551 |
Equity in undistributed (earnings) losses of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 2,392 | -11,213 | -32,554 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 46,685 | 42,790 | 23,931 |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash and cash equivalents acquired in acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | 857 | ' | ' |
Purchases of securities available-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,500 | -2,580 |
Net cash provided by investing activities | ' | ' | ' | ' | ' | ' | ' | ' | 857 | -1,500 | -2,580 |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of subordinated debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,558 | ' |
Tax effect included in stockholders' equity of restricted stock vesting | ' | ' | ' | ' | ' | ' | ' | ' | 364 | 102 | -501 |
Restricted stock surrendered | ' | ' | ' | ' | ' | ' | ' | ' | -13,537 | -1,475 | -1,465 |
Cash dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -41,006 | -28,787 | -7,626 |
Net cash used in financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -54,179 | -48,718 | -9,592 |
Net (decrease) increase in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | -6,637 | -7,428 | 11,759 |
Cash and cash equivalents at beginning of year | ' | ' | ' | 28,472 | ' | ' | ' | 35,900 | 28,472 | 35,900 | 24,141 |
Cash and cash equivalents at end of year | 21,835 | ' | ' | ' | 28,472 | ' | ' | ' | 21,835 | 28,472 | 35,900 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for First California Financial Group acquisition | ' | ' | ' | ' | ' | ' | ' | ' | $242,268 | ' | ' |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SELECTED QUARTERLY FINANCIAL DATA (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $83,856 | $85,158 | $71,631 | $69,269 | $73,702 | $75,123 | $72,890 | $74,400 | $309,914 | $296,115 | $295,284 |
Interest expense | -2,598 | -2,869 | -3,158 | -3,576 | -4,099 | -4,352 | -4,477 | -6,720 | -12,201 | -19,648 | -32,643 |
Net interest income | 81,258 | 82,289 | 68,473 | 65,693 | 69,603 | 70,771 | 68,413 | 67,680 | 297,713 | 276,467 | 262,641 |
Negative provision (provision) for credit losses | 1,338 | 4,167 | 1,842 | -3,137 | 4,333 | 2,141 | 271 | 6,074 | 4,210 | 12,819 | -26,570 |
FDIC loss sharing income (expense), net | -10,593 | -7,032 | -5,410 | -3,137 | -6,022 | -367 | -102 | -3,579 | -26,172 | -10,070 | 7,776 |
(Loss) gain on sale of securities | -272 | ' | ' | 409 | 1,239 | ' | ' | ' | 137 | 1,239 | ' |
Other-than-temporary-impairment loss on covered securities | ' | ' | ' | ' | ' | ' | -1,115 | ' | ' | -1,115 | ' |
Acquisition-related securities gain | ' | 5,222 | ' | ' | ' | ' | ' | ' | 5,222 | ' | ' |
Other noninterest income | 6,939 | 6,937 | 5,613 | 5,568 | 6,840 | 6,049 | 6,088 | 6,841 | ' | ' | ' |
Total noninterest income | -3,926 | 5,127 | 203 | 2,840 | 2,057 | 5,682 | 4,871 | 3,262 | 4,244 | 15,872 | 31,426 |
Accelerated vesting of restricted stock | -12,420 | ' | ' | ' | ' | ' | ' | ' | -12,420 | ' | ' |
Non-covered OREO expense, net | -25 | 88 | -80 | -313 | -316 | -1,883 | -130 | -1,821 | -330 | -4,150 | -7,010 |
Covered OREO expense, net | 594 | 332 | 94 | 813 | 461 | -4,290 | -2,130 | -822 | 1,833 | -6,781 | -3,666 |
Acquisition and integration costs | -4,253 | -5,450 | -17,997 | -692 | -1,092 | -2,101 | -871 | -25 | -28,392 | -4,089 | -600 |
Other noninterest expense | -49,984 | -51,170 | -46,233 | -43,991 | -42,578 | -43,383 | -44,454 | -43,629 | ' | ' | ' |
Total noninterest expense | -66,088 | -56,200 | -64,216 | -44,183 | -43,525 | -51,657 | -47,585 | -68,895 | -230,687 | -211,662 | -179,993 |
Earnings from continuing operations before income taxes | 12,582 | 35,383 | 6,302 | 21,213 | 32,468 | 26,937 | 25,970 | 8,121 | 75,480 | 93,496 | 87,504 |
Income tax expense | -9,135 | -11,243 | -1,906 | -7,719 | -12,576 | -10,849 | -10,413 | -2,857 | -30,003 | -36,695 | -36,800 |
NET EARNINGS FROM CONTINUING OPERATIONS | 3,447 | 24,140 | 4,396 | 13,494 | ' | ' | ' | ' | 45,477 | 56,801 | 50,704 |
Earnings from discontinued operations before income taxes | -578 | 39 | -81 | ' | ' | ' | ' | ' | -620 | ' | ' |
Income tax (expense) benefit | 240 | -16 | 34 | ' | ' | ' | ' | ' | 258 | ' | ' |
NET EARNINGS FROM DISCONTINUED OPERATIONS | -338 | 23 | -47 | ' | ' | ' | ' | ' | -362 | ' | ' |
NET EARNINGS | $3,109 | $24,163 | $4,349 | $13,494 | $19,892 | $16,088 | $15,557 | $5,264 | $45,115 | $56,801 | $50,704 |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings from continuing operations (in dollars per share) | $0.07 | $0.53 | $0.11 | $0.37 | ' | ' | ' | ' | $1.09 | $1.54 | $1.37 |
Net earnings (in dollars per share) | $0.06 | $0.53 | $0.11 | $0.37 | $0.54 | $0.43 | $0.42 | $0.14 | $1.08 | $1.54 | $1.37 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings from continuing operations (in dollars per share) | $0.07 | $0.53 | $0.11 | $0.37 | ' | ' | ' | ' | $1.09 | $1.54 | $1.37 |
Net earnings (in dollars per share) | $0.06 | $0.53 | $0.11 | $0.37 | $0.54 | $0.43 | $0.42 | $0.14 | $1.08 | $1.54 | $1.37 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Castle Creek Financial | ' | ' | ' |
Related party transaction | ' | ' | ' |
Related party expense | ' | ' | $0 |
Castle Creek Financial | APB | ' | ' | ' |
Related party transaction | ' | ' | ' |
Related party expense | ' | 448,000 | ' |
Castle Creek Financial | FCAL | ' | ' | ' |
Related party transaction | ' | ' | ' |
Related party expense | 1,300,000 | ' | ' |
CapGen Financial, LLC | ' | ' | ' |
Related party transaction | ' | ' | ' |
Percentage of board fees remitted | 80.00% | ' | ' |
Grant date fair value of stock awards against which cash remitted | 30,000 | 30,000 | 30,000 |
Percentage of grant date fair value of stock awards against which cash remitted | 80.00% | 80.00% | 80.00% |
Related party expense | 72,000 | 72,000 | 72,000 |
Members of board of directors or executive management | ' | ' | ' |
Related party transaction | ' | ' | ' |
loans outstanding | 0 | 0 | ' |
Related parties' deposits | $3,600,000 | $4,200,000 | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 12, 2014 | |
Subsequent event | ||||
Subsequent events | ' | ' | ' | ' |
Quarterly cash dividends declared per common share (in dollars per share) | $1 | $0.79 | $0.21 | $0.25 |