Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 07, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'CUNB | ' | ' |
Entity Registrant Name | 'CU Bancorp | ' | ' |
Entity Central Index Key | '0001543643 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 11,178,508 | ' |
Entity Public Float | ' | ' | $148.70 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and due from banks | $23,156,000 | $25,181,000 |
Interest earning deposits in other financial institutions | 218,131,000 | 157,715,000 |
Total Cash and Cash Equivalents | 241,287,000 | 182,896,000 |
Certificates of deposit in other financial institutions | 60,307,000 | 27,006,000 |
Investment securities available-for-sale, at fair value | 106,488,000 | 118,153,000 |
Loans | 933,194,000 | 854,885,000 |
Allowance for loan loss | -10,603,000 | -8,803,000 |
Net loans | 922,591,000 | 846,082,000 |
Premises and equipment, net | 3,531,000 | 3,422,000 |
Deferred tax assets, net | 11,835,000 | 13,818,000 |
Other real estate owned, net | 0 | 3,112,000 |
Goodwill | 12,292,000 | 12,292,000 |
Core deposit and leasehold right intangibles | 2,525,000 | 1,747,000 |
Bank owned life insurance | 21,200,000 | 20,583,000 |
Accrued interest receivable and other assets | 25,760,000 | 20,526,000 |
Total Assets | 1,407,816,000 | 1,249,637,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Non-interest bearing demand deposits | 632,192,000 | 543,527,000 |
Interest bearing transaction accounts | 155,735,000 | 112,747,000 |
Money market and savings deposits | 380,915,000 | 340,466,000 |
Certificates of deposit | 63,581,000 | 81,336,000 |
Total deposits | 1,232,423,000 | 1,078,076,000 |
Securities sold under agreements to repurchase | 11,141,000 | 22,857,000 |
Subordinated debentures, net | 9,379,000 | 9,169,000 |
Accrued interest payable and other liabilities | 16,949,000 | 13,912,000 |
Total Liabilities | 1,269,892,000 | 1,124,014,000 |
Commitments and Contingencies (Note 22) | 0 | 0 |
SHAREHOLDERS' EQUITY | ' | ' |
Serial Preferred Stock - authorized, 50,000,000 shares no par value, no shares issued or outstanding | 0 | 0 |
Common stock - authorized, 75,000,000 shares no par value, 11,081,364 and 10,758,674 shares issued and outstanding at December 31, 2013 and 2012, respectively | 121,675,000 | 118,885,000 |
Additional paid-in capital | 8,377,000 | 7,052,000 |
Retained earnings (deficit) | 8,077,000 | -1,708,000 |
Accumulated other comprehensive income (loss) | -205,000 | 1,394,000 |
Total Shareholders' Equity | 137,924,000 | 125,623,000 |
Total Liabilities and Shareholders' Equity | $1,407,816,000 | $1,249,637,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred Stock, authorized shares | 50,000,000 | 50,000,000 |
Preferred Stock, No par value | $0 | $0 |
Preferred Stock, Shares issued | 0 | 0 |
Preferred Stock, Shares outstanding | 0 | 0 |
Common stock, Shares authorized | 75,000,000 | 75,000,000 |
Common stock, no par value | $0 | $0 |
Common stock, Shares issued | 11,081,364 | 10,758,674 |
Common stock, Shares outstanding | 11,081,364 | 10,758,674 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest Income | ' | ' | ' |
Interest and fees on loans | $48,201 | $34,268 | $25,135 |
Interest on investment securities | 1,913 | 2,421 | 2,968 |
Interest on interest bearing deposits in other financial institutions | 732 | 807 | 653 |
Total Interest Income | 50,846 | 37,496 | 28,756 |
Interest Expense | ' | ' | ' |
Interest on interest bearing transaction accounts | 238 | 184 | 152 |
Interest on money market and savings deposits | 1,027 | 927 | 799 |
Interest on certificates of deposit | 255 | 264 | 261 |
Interest on securities sold under agreements to repurchase | 74 | 90 | 104 |
Interest on subordinated debentures | 485 | 332 | 0 |
Total Interest Expense | 2,079 | 1,797 | 1,316 |
Net Interest Income | 48,767 | 35,699 | 27,440 |
Provision for loan losses | 2,852 | 1,768 | 1,442 |
Net Interest Income After Provision For Loan Losses | 45,915 | 33,931 | 25,998 |
Non-Interest Income | ' | ' | ' |
Gain on sale of securities, net | 47 | 0 | 219 |
Other-than-temporary impairment losses | 0 | -155 | -264 |
Gain on sale of SBA loans, net | 1,087 | 50 | 0 |
Deposit account service charge income | 2,377 | 2,130 | 1,617 |
Other non-interest income | 3,007 | 1,936 | 790 |
Total Non-Interest Income | 6,518 | 3,961 | 2,362 |
Non-Interest Expense | ' | ' | ' |
Salaries and employee benefits (includes stock based compensation expense of $1,088, $1,120 and $1,467 for the years ended December 31, 2013, 2012 and 2011, respectively) | 22,870 | 18,729 | 15,352 |
Occupancy | 4,194 | 3,564 | 3,103 |
Data processing | 1,868 | 1,905 | 1,207 |
Legal and professional | 2,166 | 1,350 | 971 |
FDIC deposit assessment | 880 | 719 | 764 |
Merger related expenses | 43 | 3,058 | 420 |
OREO valuation write-downs and expenses | 95 | 343 | 216 |
Office services expenses | 1,034 | 1,127 | 1,005 |
Other operating expenses | 4,490 | 3,705 | 2,708 |
Total Non-Interest Expense | 37,640 | 34,500 | 25,746 |
Net Income Before Provision for Income Tax Expense | 14,793 | 3,392 | 2,614 |
Provision for income tax expense | 5,008 | 1,665 | 1,147 |
Net Income | $9,785 | $1,727 | $1,467 |
Earnings Per Share | ' | ' | ' |
Basic earnings per share | $0.93 | $0.21 | $0.23 |
Diluted earnings per share | $0.90 | $0.21 | $0.22 |
Consolidated_Statements_Of_Inc1
Consolidated Statements Of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Stock based compensation expense | $1,088 | $1,120 | $1,467 |
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 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net Income | $9,785 | $1,727 | $1,467 |
Other Comprehensive Income, net of tax: | ' | ' | ' |
Non-credit portion of other-than-temporary impairments arising during the period | -22 | 464 | -153 |
Net unrealized gains (losses) on investment securities arising during the period | -1,577 | 40 | 360 |
Net other comprehensive income (loss) | -1,599 | 504 | 207 |
Comprehensive Income | $8,186 | $2,231 | $1,674 |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income |
Beginning Balance at Dec. 31, 2010 | $67,274,000 | $66,800,000 | $4,693,000 | ($4,902,000) | $683,000 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 5,943,000 | ' | ' | ' |
Net Issuance of Restricted Stock (in shares) | ' | 121,000 | ' | ' | ' |
Net Issuance of Restricted Stock | 0 | 0 | 0 | 0 | 0 |
Exercise of Stock Options (in shares) | ' | 81,000 | ' | ' | ' |
Exercise of Stock Options | 728,000 | 728,000 | 0 | 0 | 0 |
Issuance of Stock in Private Placement Offering, shares | ' | 805,000 | ' | ' | ' |
Issuance of Stock in Private Placement Offering, net of $569 in issuance costs | 9,697,000 | 9,697,000 | 0 | 0 | 0 |
Stock based compensation expense related to employee stock options and restricted stock | 1,467,000 | 0 | 1,467,000 | 0 | 0 |
Excess tax (deficiency) benefit - stock based compensation | 4,000 | 0 | 4,000 | 0 | 0 |
Net Income | 1,467,000 | 0 | 0 | 1,467,000 | 0 |
Other Comprehensive Income (Loss) | 207,000 | 0 | 0 | 0 | 207,000 |
Ending Balance at Dec. 31, 2011 | 80,844,000 | 77,225,000 | 6,164,000 | -3,435,000 | 890,000 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 6,950,000 | ' | ' | ' |
Net Issuance of Restricted Stock (in shares) | ' | 110,000 | ' | ' | ' |
Net Issuance of Restricted Stock | 0 | 0 | 0 | 0 | 0 |
Exercise of Stock Options (in shares) | 0 | ' | ' | ' | ' |
Issuance of Stock for Purchase of PC Bancorp, shares | ' | 3,721,000 | ' | ' | ' |
Issuance of Stock for Purchase of PC Bancorp, net of $199 in issuance costs | 41,660,000 | 41,660,000 | 0 | 0 | 0 |
Stock based compensation expense related to employee stock options and restricted stock | 1,120,000 | 0 | 1,120,000 | 0 | 0 |
Restricted stock Repurchase, shares | ' | -22,000 | ' | ' | ' |
Restricted Stock Repurchase | -228,000 | 0 | -228,000 | 0 | 0 |
Excess tax (deficiency) benefit - stock based compensation | -4,000 | 0 | -4,000 | 0 | 0 |
Net Income | 1,727,000 | 0 | 0 | 1,727,000 | 0 |
Other Comprehensive Income (Loss) | 504,000 | 0 | 0 | 0 | 504,000 |
Ending Balance at Dec. 31, 2012 | 125,623,000 | 118,885,000 | 7,052,000 | -1,708,000 | 1,394,000 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 10,759,000 | ' | ' | ' |
Net Issuance of Restricted Stock (in shares) | 69,450 | 69,000 | ' | ' | ' |
Net Issuance of Restricted Stock | 0 | 0 | 0 | 0 | 0 |
Exercise of Stock Options (in shares) | 282,031 | 282,000 | ' | ' | ' |
Exercise of Stock Options | 2,790,000 | 2,790,000 | 0 | 0 | 0 |
Stock based compensation expense related to employee stock options and restricted stock | 1,088,000 | 0 | 1,088,000 | 0 | 0 |
Restricted stock Repurchase, shares | ' | -29,000 | ' | ' | ' |
Restricted Stock Repurchase | -422,000 | 0 | -422,000 | 0 | 0 |
Excess tax (deficiency) benefit - stock based compensation | 659,000 | 0 | 659,000 | 0 | 0 |
Net Income | 9,785,000 | 0 | 0 | 9,785,000 | 0 |
Other Comprehensive Income (Loss) | -1,599,000 | 0 | 0 | 0 | -1,599,000 |
Ending Balance at Dec. 31, 2013 | $137,924,000 | $121,675,000 | $8,377,000 | $8,077,000 | ($205,000) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 11,081,000 | ' | ' | ' |
Consolidated_Statements_Of_Sha1
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Statement Of Stockholders Equity [Abstract] | ' |
Issuance of Stock for Purchase of PC Bancorp, issuance costs | $199 |
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 Income | $9,785 | $1,727 | $1,467 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for loan losses | 2,852 | 1,768 | 1,442 |
Provision for unfunded loan commitments | 73 | 34 | 35 |
Stock based compensation expense | 1,088 | 1,120 | 1,467 |
Depreciation | 1,082 | 1,022 | 1,006 |
Net accretion of discounts/premiums for loans acquired and deferred loan fees/costs | -6,158 | -3,654 | -1,794 |
Net amortization from investment securities | 1,642 | 1,403 | 1,015 |
Increase in bank owned life insurance | -617 | -267 | -105 |
Amortization of core deposit intangibles | 309 | 219 | 137 |
Amortization of time deposit premium | -141 | -140 | 0 |
Amortization of leasehold right intangible asset and liabilities | -313 | -315 | -174 |
Accretion of subordinated debenture discount | 210 | 94 | 0 |
Loss on disposal of fixed assets | 15 | 5 | 3 |
OREO valuation write-downs | 0 | 232 | 0 |
Gain on Sale of OREO | -23 | 0 | 0 |
Net other-than-temporary impairment losses recognized in operations | 0 | 155 | 264 |
Gain on sale of securities, net | -47 | 0 | -219 |
Gain on sale of SBA loans, net | -1,087 | -50 | 0 |
(Increase) decrease in deferred tax assets | 3,101 | -751 | 62 |
(Increase) decrease in accrued interest receivable and other assets | -7,558 | -668 | -183 |
Increase (decrease) in accrued interest payable and other liabilities | 6,459 | 1,282 | -254 |
Increase (decrease) in fair value of derivative swap liability | -2,095 | -599 | 0 |
Net cash provided by operating activities | 8,577 | 2,888 | 4,444 |
Cash flows from investing activities: | ' | ' | ' |
Cash and cash equivalents acquired in acquisition, net of cash paid | 0 | 41,716 | 0 |
Purchases of available-for-sale investment securities | -36,318 | -7,255 | -67,824 |
Proceeds from sales of available-for-sale investment securities | 6,968 | 17,278 | 4,758 |
Proceeds from repayment and maturities from available-for-sale investment securities | 36,703 | 29,720 | 44,271 |
Loans originated, net of principal payments | -72,116 | -84,387 | -69,354 |
Purchases of premises and equipment | -1,206 | -823 | -319 |
Proceeds from sale of OREO | 3,135 | 0 | 1,167 |
Net (increase) decrease in certificates of deposit in other financial institutions | -33,301 | 12,849 | -35,144 |
Purchase of bank owned life insurance | 0 | -14,000 | 0 |
Net redemption of FHLB and other bank stock | 150 | 866 | 587 |
Net cash used in investing activities | -95,985 | -4,036 | -121,858 |
Cash flows from financing activities: | ' | ' | ' |
Net increase in Non-interest bearing demand deposits | 88,665 | 82,080 | 103,709 |
Net increase (decrease) in Interest bearing transaction accounts | 42,988 | 40,893 | -5,095 |
Net increase (decrease) in Money market and savings deposits | 40,449 | -38,646 | -46,018 |
Net decrease in Certificates of deposit | -17,614 | -30,951 | -19,807 |
Net increase (decrease) in Securities sold under agreements to repurchase | -11,716 | -3,330 | 3,325 |
Repayments of Federal Home Loan Bank borrowings - long-term | 0 | 0 | -5,545 |
Net proceeds from Common stock issued | 0 | 0 | 9,697 |
Net proceeds from stock options exercised | 2,790 | 0 | 728 |
Restricted stock repurchase | -422 | -228 | 0 |
Net excess (deficiency) in tax benefit on stock compensation | 659 | -4 | 4 |
Net cash provided by financing activities | 145,799 | 49,814 | 40,998 |
Net increase (decrease) in cash and cash equivalents | 58,391 | 48,666 | -76,416 |
Cash and cash equivalents, beginning of year | 182,896 | 134,230 | 210,646 |
Cash and cash equivalents, end of year | 241,287 | 182,896 | 134,230 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid during the year for interest | 2,029 | 1,681 | 1,425 |
Net cash paid (refunds received) during the year for taxes | -270 | 2,685 | 200 |
Supplemental disclosures of non-cash investing activities: | ' | ' | ' |
Net increase (decrease) in unrealized gains (losses) on investment securities, net of tax | -1,599 | 504 | 207 |
Loans transferred to other real estate owned | 0 | 0 | 3,344 |
Supplemental schedule related to acquisition: | ' | ' | ' |
Cash and cash equivalents acquired | 0 | 42,172 | 0 |
Cash paid for cancellation of stock options | 0 | -455 | 0 |
Cash paid for fractional shares | 0 | -1 | 0 |
Cash and cash equivalents acquired, net of cash paid | $0 | $41,716 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Summary of Significant Accounting Policies | ' | |||
Note 1 – Summary of Significant Accounting Policies | ||||
CU Bancorp (the “Company”) is a bank holding company whose operating subsidiary is California United Bank. CU Bancorp was established to facilitate the reorganization and merger of Premier Commercial Bank, N.A. into California United Bank, which took place after the close of business on July 31, 2012. As a bank holding company, CU Bancorp is subject to regulation of the Federal Reserve Board (“FRB”). See Note 2 – Business Combinations. The term “Company”, as used throughout this document, refers to the consolidated balance sheets and consolidated statements of income of CU Bancorp and California United Bank. | ||||
California United Bank (the “Bank”) is a full-service commercial business bank offering a broad range of banking products and services including: deposit services, lending and cash management to small and medium-sized businesses, to non-profit organizations, to business principals and entrepreneurs, to the professional community, including attorneys, certified public accountants, financial advisors, healthcare providers and investors. The Bank opened for business in 2005, with its headquarters office located in Encino, California. As a state chartered non-member bank, the Bank is subject to regulation by the California Department of Business Oversight, (the “DBO”) and the Federal Deposit Insurance Corporation (“FDIC”). The deposits of the Bank are insured by the FDIC, to the maximum amount allowed by law. | ||||
Basis of Financial Statement Presentation | ||||
The consolidated financial statements include the accounts of the Company and the Bank. Significant intercompany items have been eliminated in consolidation. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. | ||||
CU Bancorp is the common shareholder of Premier Commercial Statutory Trust I, Premier Commercial Statutory Trust II, and Premier Commercial Statutory Trust III, entities which were acquired in the merger with Premier Commercial Bancorp (“PC Bancorp”). These trusts were established for the sole purpose of issuing trust preferred securities and do not meet the criteria for consolidation. For more detail, see Note 13 – Borrowings and Subordinated Debentures. | ||||
Use of Estimates in the Preparation of Financial Statements | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In addition, these accounting principles require the disclosure of contingent assets and liabilities as of the date of the financial statements. | ||||
Estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan loss and various assets and liabilities measured at fair value. While management uses the most current available information to recognize losses on loans, future additions to the allowance for loan loss may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan loss. Regulatory agencies may require the Company to recognize additions to the allowance for loan loss based on their judgment about information available to them at the time of their examination. | ||||
Business Segments | ||||
The Company is organized and operated as a single reporting segment, principally engaged in commercial business banking. The Company conducts its lending and deposit operations through eight full service branch offices located in Los Angeles, Orange, and Ventura counties. | ||||
Cash and Cash Equivalents | ||||
Within the Consolidated Statements of Cash Flows, cash and cash equivalents include cash, due from banks and interest earning deposits in other financial institutions. Cash flows from loans, deposits, securities sold under agreements to repurchase and certificates of deposit in other financial institutions are reported on a net basis. | ||||
Restricted Cash | ||||
Banking regulations require that all banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. Reserve balances of $1,129,000 and $1,960,000 were required by the Federal Reserve Bank of San Francisco as of December 31, 2013 and 2012, respectively. As of December 31, 2013, the Bank was in compliance with all known Federal Reserve Bank reporting and reserve requirements. At December 31, 2013 and 2012 respectively, the Company had $4.3 million and $5.1 million pledged as collateral for its interest rate swap agreement with Pacific Coast Bankers Bank “PCBB”. | ||||
Interest Earning Deposits in Other Financial Institutions | ||||
Interest earning deposits in other financial institutions represent short term interest earning deposits, which include money market deposit accounts with other financial institutions, including interest earning deposits with the U.S. Federal Reserve Bank “Federal Reserve”. These deposits and investments can generally provide the Company with immediate liquidity and generally can be liquidated the same day as is the case with the Federal Reserve and up to seven days on money market deposit accounts with other financial institutions. | ||||
Certificates of Deposit in Other Financial Institutions | ||||
The Company’s investments in certificates of deposit issued by other financial institutions are generally fully insured by the FDIC up to the applicable limit of $250,000 and have original maturity of between 30 days and 12 months. The current remaining maturities of the Company’s certificates of deposit at December 31, 2013 range from 4 days to 12 months with a weighted average maturity of 5.2 months and a weighted average yield of 0.50%. | ||||
Concentrations and Credit Risk in Other Financial Institutions | ||||
The Company maintains certain deposits in other financial institutions in amounts that exceed federal deposit insurance coverage. At December 31, 2013, the amount of deposits in other financial institutions that the Company did not maintain with either the Federal Reserve Bank or the Federal Home Loan Bank and were not covered by FDIC insurance was $20.1 million in non-interest bearing accounts, $14.5 million in interest bearing accounts, and $4.3 million in certificates of deposit in other financial institutions. Based on management’s evaluation of the credit risk of maintaining balances and transactions with these correspondent financial institutions, management does not believe that the Company is exposed to any significant credit risk on these balances. | ||||
Investment Securities | ||||
The Company classifies its investment securities as available-for-sale. Under the available-for-sale classification securities can be sold in response to certain conditions, such as changes in interest rates, fluctuations in deposit levels or loan demand or need to restructure the portfolio to better match the maturity or interest rate characteristics of liabilities with assets. Securities classified as available-for-sale are accounted for at their current fair value rather than amortized historical cost. Unrealized gains or losses are excluded from net income and reported as a separate component of accumulated other comprehensive income (loss) included in shareholders’ equity. | ||||
As of each reporting date, the Company evaluates the securities portfolio to determine if there has been an other-than-temporary impairment (“OTTI”) on each of the individual securities in the investment securities portfolio. If it is probable that the Company will be unable to collect all amounts due according to the contractual terms of a debt security not impaired at acquisition, an OTTI shall be considered to have occurred. Once an OTTI is considered to have occurred, the credit portion of the loss is required to be recognized in current earnings, while the non-credit portion of the loss is recorded as a separate component of shareholders’ equity. | ||||
In estimating whether an other-than-temporary impairment loss has occurred, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the current liquidity and volatility of the market for each of the individual security categories, (iv) the current slope and shape of the Treasury yield curve, along with where the economy is in the current interest rate cycle, (v) the current spread between Treasuries and the specific security categories, and the spread differential between the current spread and the long-term average spread for that security category, (vi) the projected cash flows from the specific security type, (vii) the financial guarantee and financial rating of the issuer and (viii) the intent and ability of the Company to retain its investment in the issue for a period of time sufficient to allow for any anticipated recovery in fair value. | ||||
If it’s determined that an other-than-temporary impairment exists on a debt security, the Company then determines if (a) it intends to sell the security or (b) it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of the conditions is met, the Company will recognize an other-than-temporary impairment in earnings equal to the difference between the security’s fair value and its adjusted cost basis. If neither of the conditions is met, the Company determines (a) the amount of the impairment related to credit loss and (b) the amount of the impairment due to all other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost basis is the credit loss. The credit loss is the portion of the other-than-temporary impairment that is recognized in earnings and is a reduction to the cost basis of the security. The portion of total impairment related to all other factors is included in other comprehensive income. Significant judgment is required in this analysis that includes, but is not limited to assumptions regarding the collectability of principal and interest, future default rates, future prepayment speeds, the amount of current delinquencies that will result in defaults and the amount of eventual recoveries expected on these defaulted loans through the foreclosure process. | ||||
Realized gains and losses on sales of securities are recognized in earnings at the time of sale and are determined on a specific-identification basis. Purchase premiums and discounts are recognized in interest income using the interest method over the expected maturity term of the securities. For mortgage-backed securities, the amortization or accretion is based on estimated average lives of the securities. The lives of these securities can fluctuate based on the amount of prepayments received on the underlying collateral of the securities. | ||||
Federal Home Loan Bank Stock | ||||
As a member of the Federal Home Loan Bank of San Francisco (FHLB), the Bank is required to maintain an investment in capital stock of the FHLB. The stock does not have a readily determinable fair value and as such is carried at cost and evaluated for impairment. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the changes in (increases or declines) in the net assets of the FHLB as compared to the capital stock amount and the length of time these changes (situation) has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. | ||||
The Federal Home Loan Bank of San Francisco has reported earnings for the years ended December 31, 2013, 2012, and 2011, and remains in compliance with its regulatory capital and liquidity requirements and has declared and paid dividends on its stock in 2013, 2012 and 2011. In addition, the FHLB made capital stock redemptions in 2013, 2012 and 2011. See Note 5 – Investment Securities, Investments in FHLB Common Stock. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2013, 2012 or 2011. | ||||
The Company’s investment in FHLB stock is included in other assets on the accompanying balance sheets. | ||||
Loans and Interest and Fees on Loans | ||||
The Company extends commercial, SBA, commercial real estate, construction and personal loans to business principals and entrepreneurs, to small and medium-sized businesses, to non-profit organizations, to the professional community, including attorneys, certified public accountants, financial advisors, healthcare providers, and to investors. Loans that the Company has the ability and intent to hold until maturity are stated at their outstanding unpaid principal balances, net of deferred loan fees, unearned discounts, fair value credit valuation allowance and net of the allowance for loan loss. The Company recognizes loan origination fees to the extent they represent reimbursement for initial direct costs, as income at the time of loan boarding. The excess of fees over costs, if any, is deferred and recognized in interest income using the level yield method. | ||||
Interest on loans is accrued daily and credited to income based on the principal amount outstanding. Interest is calculated using the terms of the loan according to the contractual note agreements. A small number of loans have been identified and designated as hedged items by the Company. For a detailed discussion of the accounting related to the loans designated as hedged items, see Note 1 – Summary of Significant Accounting Policies under “Derivative Financial Instruments and Hedging Activity.” | ||||
Nonaccrual loans: For all loan types, when a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. Generally, the Company places loans in a nonaccrual status and the accrual of interest on loans is discontinued when the loan has become delinquent by more than 90 days or when management determines that the full repayment of principal and collection of interest is unlikely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent, if the loan is well secured by collateral and in the process of collection. | ||||
When a loan is placed on nonaccrual status or has been charged-off, all interest income that has been accrued but not yet collected, is reversed against interest income. Subsequent payments received from the customer are applied to principal and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. | ||||
Impaired loans: A loan is identified as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the original loan agreement. Generally, these loans are rated substandard or worse. Most impaired loans are classified as nonaccrual. However, there are some loans that are designated impaired due to doubt regarding collectability according to contractual terms, but are both fully secured by collateral and are current in their interest and principal payments. These impaired loans that are not classified as nonaccrual continue to pay as agreed. Impaired loans are measured for reserve requirements based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are charged against the allowance for loan loss. Factors that contribute to a performing loan being classified as impaired include payment status, collateral value, probability of collecting scheduled payments, delinquent taxes, and debts to other lenders that cannot be serviced out of existing cash flow. | ||||
Troubled debt restructurings: A loan is classified as a troubled debt restructuring when a borrower experiences financial difficulties that lead to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. The loan terms which have been modified or restructured due to a borrower’s financial difficulty may include a reduction in the stated interest rate, an extension of the maturity at an interest rate below current market interest rates, a reduction in the face amount of the debt (principal forgiveness), a reduction in the accrued interest, or re-aging, extensions, deferrals, renewals, rewrites and other actions intended to minimize potential losses. | ||||
Troubled debt restructurings are considered impaired loans and are evaluated for the amount of impairment, with the appropriate allowance for loan loss. | ||||
In determining whether a debtor is experiencing financial difficulties, the Company considers if the debtor is in payment default or would be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor’s entity-specific projected cash flows will not be sufficient to service its debt, or the debtor cannot obtain funds from sources other than the existing creditors at a market rate for debt with similar risk characteristics. | ||||
In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the debtor will serve as adequate compensation for other terms of the restructuring, and whether the debtor otherwise has access to funds at a market rate for debt with similar risk characteristics. | ||||
A loan that is modified at a market rate of interest will not be classified as troubled debt restructuring in the calendar year subsequent to the restructuring if it is in compliance with the modified terms and the expectation exists for continued performance going forward. Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms. This may result in the loan being returned to accrual at the time of restructuring. The Company generally requires a period of sustained repayment for at least six months for return to accrual status. | ||||
Loans Held for Sale and Servicing Assets | ||||
Loans held for sale are loans originated by the Company and include the principal amount outstanding net of unearned income and the loans 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 is taken into earnings when they are sold. At December 31, 2013 and 2012, the Company had no loans classified as held for sale. | ||||
Gains or losses resulting from sales of loans 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 less 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. | ||||
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 the estimated future net servicing income. The amortization of the servicing asset and the servicing income are included in noninterest income. The fair value of the servicing assets is estimated by discounting the future cash flows using market-based discount rates and prepayment speeds. The Company’s servicing asset is evaluated regularly for impairment. The servicing asset is stratified based on the original term to maturity and the year of origination of the underlying loans for purposes of measuring impairment. If the fair value of the servicing asset is less than the amortized carrying value, the asset is considered to be impaired and an impairment charge will be taken against earnings. The servicing asset is included in other assets on the consolidated balance sheets. | ||||
Allowance for Loan Loss | ||||
The allowance for loan loss (“Allowance”) is established by a provision for loan losses that is charged against income, increased by charges to expense and decreased by charge-offs (net of recoveries). Loan charge-offs are charged against the Allowance when management believes the collectability of loan principal becomes unlikely. Subsequent recoveries, if any, are credited to the Allowance. | ||||
The Allowance is an amount that management believes will be adequate to absorb estimated charge-offs related to specifically identified loans, as well as probable loan charge-offs inherent in the balance of the loan portfolio, based on an evaluation of the collectability of existing loans and prior loss experience. Management carefully monitors changing economic conditions, the concentrations of loan categories and collateral, the financial condition of the borrowers, the history of the loan portfolio, as well as historical peer group loan loss data to determine the adequacy of the Allowance. The Allowance is based upon estimates, and actual charge-offs may vary from the estimates. No assurance can be given that adverse future economic conditions will not lead to delinquent loans, increases in the provision for loan losses and/or charge- offs. These evaluations are inherently subjective, as they require estimates that are susceptible to significant revisions as conditions change. In addition, regulatory agencies, as an integral part of their examination process, may require additions to the Allowance based on their judgment about information available at the time of their examinations. Management believes that the Allowance as of December 31, 2013 is adequate to absorb known and probable losses in the loan portfolio. | ||||
The Allowance consists of specific and general components. The specific component relates to loans that are categorized as impaired. For loans that are categorized as impaired, a specific reserve is established when the fair value of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on the type of loan and historical charge-off experience adjusted for qualitative factors. | ||||
While the general allowance covers all non-impaired loans and is based on historical loss experience adjusted for the various qualitative factors as discussed in Note 6—Loans, the change in the Allowance from one reporting period to the next may not directly correlate to the rate of change of nonperforming loans for the following reasons: | ||||
• | A loan moving from the impaired performing status to an impaired non-performing status does not mandate an automatic increase in reserves. The individual loan is evaluated for a specific reserve requirement when the loan moves to the impaired status, not when the loan moves to non-performing status. In addition, the impaired loan is reevaluated at each subsequent reporting period. Impaired loans are evaluated by comparing the fair value of the collateral less costs to sell, 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. | |||
• | Not all impaired loans require a specific reserve. The payment performance of the borrower may require an impaired classification, but the collateral evaluation may support adequate collateral coverage. For a number of impaired loans in which borrower performance is in question, the collateral coverage may be sufficient because a partial charge off of the loan has been taken. In those instances, neither a general reserve nor a specific reserve is assessed. | |||
Premises and Equipment | ||||
Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which range from three to ten years for furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the remaining lease term, whichever is shorter. Expenditures for improvements or major repairs are capitalized and those for ordinary repairs and maintenance are charged to operations as incurred. | ||||
Other Real Estate Owned | ||||
Real estate properties that are acquired through, or in lieu of, loan foreclosure are initially recorded at fair value, less estimated costs to sell, at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of the cost basis or fair value less estimated costs to sell. Revenue and expenses from operations and additions to the valuation allowance are included in other expenses. | ||||
Goodwill and Other Intangible Assets | ||||
Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination determined to have an indefinite useful life are not amortized, but tested for impairment at least annually, or more frequently if events and circumstances exist that indicate that an impairment test should be performed. The Company has selected October 1st as the date to perform its annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Company’s balance sheet. There was no impairment as of December 31, 2013. The increase in goodwill in 2012 was solely the result of the acquisition of PC Bancorp. For more discussion, see Note 2 – Business Combinations. | ||||
Core deposit intangible assets arising from business combinations are amortized using an accelerated method over their estimated useful lives and are classified under core deposit and leasehold right intangibles on the Company’s balance sheet. | ||||
Leasehold right intangible is the difference in the fair value of an acquired lease and the amount of payments required to be made under the lease obligation. The leasehold intangible asset is amortized to expense over the life of the lease and is classified under core deposit and leasehold right intangibles on the Company’s balance sheet. | ||||
Qualified Affordable Housing Project Investments | ||||
The Company has made investments in qualified affordable housing projects that are defined within the industry and here as investments in Low Income Housing Tax Credits “LIHTC”. The investment in LIHTC provides the Company with tax credits and tax benefits which are designed to encourage investments in the construction and rehabilitation of low-income housing. The Company’s investments are made to limited partnerships that manage or invest in qualified affordable housing projects primarily to receive both tax credits and benefits in addition to CRA credits. In December 2013, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). See “Recent Accounting Pronouncements” contained in Note 1 – Summary of Significant Accounting Policies for an overview of this accounting standard. ASU 2014-1 modifies the conditions that a reporting entity must meet to be eligible to use a method other than the equity or cost method to account for qualified affordable housing project investments. If the modified conditions are met, the amendments permit an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense (benefit). The four conditions that must be met to utilize the proportional amortization method are: (a) it is probable that the tax credits allocable to the investor will be available, (b) the investor does not have the ability to exercise significant influence over the operating and financial policies of the limited partnership, and substantially all of the projected benefits are from tax credits and tax benefits, (c) the investor’s projected yield based solely on the cash flows from the tax credits and tax benefits is positive and (d) the investor is a limited liability investor in the limited partnership for both legal and tax purposes, and the investor is limited to its capital investment. The Company believes that all the above conditions are met to qualify the Company to account for its investments in LIHTC under ASU 2014-1. In addition, the Company is required to evaluate its investments in LIHTC for impairment, when there are events or changes in circumstances indicating it is more likely than not that the carrying amount of the Company’s investment would not be realized either through the receipt of tax credits and tax benefits or through a sale. Management does not believe there is any impairment of its LIHTC investments at December 31, 2013. Further, ASU 2014-1 introduces new recurring disclosures about investments in qualified affordable housing projects irrespective of the method used to account for the investments. See Note 11 – Investments in Qualified Affordable Housing Projects for details on the Company’s investments in LIHTC’s. | ||||
Transfers of Financial Assets | ||||
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | ||||
Derivative Financial Instruments and Hedging Activities | ||||
At December 31, 2013 and 2012, all derivative instruments (interest rate swap contracts) were recognized on the consolidated balance sheet at their current fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and hedged item related to the hedged risk are recognized in earnings. ASC Topic 815 establishes the accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. ASC Topic 815 requires that changes in the derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Accounting for qualifying hedges allows a derivative’s gains and losses to offset related results on the hedged item in the income statement, and requires that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. | ||||
The Company acquired twenty-four interest rate swap contracts as part of its merger with PC Bancorp. From the acquisition date through September 30, 2012, (two months), these swap contracts were not designated as hedges and all changes in the fair value of the interest rate swap contracts were recognized in earnings and were included in other non-interest income. Effective October 1, 2012, twenty-one of the interest rate swap contracts were re-designated as fair value hedges by the Company with changes in the fair value of the swap contracts and changes in the fair value of the hedged items attributable to the hedged risk being recorded in net interest income. Two of the PC Bancorp fair value hedges and the one cash flow hedge were not re-designated as hedges by the Company with the changes in the fair value of these swap contacts being recorded as other non-interest income. See Note 14 – Derivative Financial Instruments regarding the details and impact of financial derivatives on the Company’s financial condition and results of operations. | ||||
On the date a derivative contract is entered into by the Company, the Company will designate the derivative contract as either a fair value hedge (i.e. a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e. a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a stand-alone derivative (i.e. and instrument with no hedging designation). For a derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income and are recognized in the income statement when the hedged item affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as other non-interest income. | ||||
The Company, as part of its acquisition of PC Bancorp, had to formally document all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for re-designating the interest rate swap contract as a hedge transaction. This process included linking all derivatives that were designated as fair value hedges to specific assets on the balance sheet. The Company also had to formally assess the hedge’s current effectiveness in offsetting changes in the fair values of the hedged items. On an ongoing basis, the derivatives that are used in hedging transactions are evaluated as to how effective they are in offsetting changes in fair values or cash flows of hedged items. | ||||
The Company will discontinue hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting change in the fair value of the hedged item, the derivative expires or is sold, is terminated, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued, the Company will continue to carry the derivative on the balance sheet at its fair value (if applicable), but will no longer adjust the hedged asset or liability for changes in fair value. The adjustments of the carrying amount of the hedged asset or liability will be accounted for in the same manner as other components of the carrying amount of that asset or liability, and the adjustments are amortized to interest income over the remaining life of the hedged item upon the termination of hedge accounting. | ||||
Income Taxes and Other Taxes | ||||
Deferred income tax assets and liabilities are computed using the asset and liability method, which recognizes a liability or asset representing the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. A valuation allowance is established to the extent necessary to reduce the deferred tax asset to the level at which it is “more likely than not” that the tax assets or benefits will be realized. Realization of tax benefits for deductible temporary differences and operating loss carryforwards depends on having sufficient taxable income of an appropriate character within the carryforward period and that current tax law will allow for the realization of those tax benefits. | ||||
The Company is required to account for uncertainty associated with the tax positions it has taken or expects to be taken on past, current and future tax returns. Where there may be a degree of uncertainty as to the tax deductibility of an item, the Company may only record the tax effects (expense or benefits) from an uncertain tax position in the financial statements if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. The Company does not believe that it has any material uncertain tax positions taken to date that are not more likely than not to be realized. The Company’s federal income tax returns for the years ended December 31, 2010 through 2012 are open for examination by federal taxing authorities and the Company’s state income tax returns for the years ended December 2009 through 2012 are open for examination by state taxing authorities. The Company’s federal tax returns for the year ended December 31, 2009 were examined by the IRS in 2011. This examination was completed with two adjustments made to the Company’s federally filed 2009 tax return which impacted the Company’s current and deferred tax assets in 2011. The amount of interest and penalties associated with the IRS audit of the Bank’s 2009 tax return was expensed in 2011 and was not considered material to the financial statements. | ||||
The Company was notified by the Franchise Tax Board during the fourth quarter of 2013 that an examination of the State of California Enterprise Zone net interest deduction that the Company took in its 2011 and 2012 tax returns is under review. The Franchise Tax Board has requested and the Company has supplied information related to the composition and calculation of the net interest deduction taken by the Company in 2011 and 2012. The Franchise Tax board has not yet notified the Company of their findings at this time. | ||||
The Company has not been notified of any other pending tax examinations by taxing authorities. | ||||
The Company’s consolidated effective statutory federal and state income tax rate is approximately 41%. The actual effective rate reflected within these financial statements is dependent on the composition of taxable earnings in the period. A number of expenses such as certain merger related expenses, certain business and entertainment expenses, country club dues, etc. are not allowable as an expense for either federal or state purposes and are classified as permanent tax-to-book taxable income differences. In addition, the Company has several items included in income, that are excluded from taxable income, such as the net interest income on loans within the State of California Enterprise Zone designated areas for state income taxes and the increase in cash surrender value of bank owned life insurance policies. Because of these differences, the Company’s effective tax may vary considerably between reporting years. During 2012, due to the inclusion of significant merger related costs, the Company had an effective tax rate in excess of its statutory rate. In 2013, the Company invested $1.1 million in Community Redevelopment Act “CRA” 60 month term, 0% interest rate deposits that made the Company eligible for a $215,000 Qualified Investment Tax Credit, which was received in the third quarter of 2013. The Company has invested in Qualified Affordable Housing Projects (“LIHTC”) that generate tax credits and benefits for the Company. See Note 1 and Note 11 – Investments in Qualified Affordable Housing Projects. The Company’s consolidated effective tax rate for the year ended December 31, 2013 is below the statutory rate. See the income tax rate reconciliation in Note 19 – Income Taxes. | ||||
Based on legislation enacted during the second quarter of 2013, the California State Legislature has repealed the net interest deduction on interest income for loans within the designated State of California Enterprise Zones. The effective date of this legislation is January 1, 2014. As a result, the Company will lose the net interest deduction when calculating its state income tax provision, which will increase the effective state tax rate for 2014. | ||||
Comprehensive Income | ||||
The Company has adopted accounting guidance issued by the Financial Accounting Standards Board (“FASB”) that requires all items recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. This also requires that an entity classify items of other comprehensive income by their nature in an annual financial statement. Other comprehensive income includes unrealized gains and losses, net of tax, on marketable securities classified as available-for-sale. | ||||
Earnings per Share (EPS) | ||||
Basic earnings per share is calculated by dividing net income by the weighted shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the dilutive effect of potential common stock using the treasury stock method only if the effect on earnings per share is dilutive. See Note 4 – Computation of Earnings per Common Share. | ||||
Recent Accounting Pronouncements | ||||
In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This update amends ASU 2011-11, Balance Sheet (Topic 210): Disclosures about offsetting Assets and Liabilities. The amendment clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The amendments are effective for fiscal and interim periods beginning on or after January 1, 2013. The adoption of this ASU did not have an impact on the Company’s financial position or results of operations. The additional disclosures required under this ASU are reflected in Note 15 – Balance Sheet Offsetting. | ||||
In February 2013, the FASB issued ASU No. 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 (issued in June 2011) and 2011-12 (issued in December 2011). These amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. These amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted the original ASU in the first quarter of 2013. The additional disclosures required under this ASU are reflected in Note 21 – Other Comprehensive Income (Loss). | ||||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. The amendments in this update provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. This guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU also requires an entity to disclose the nature and amount of the obligation, as well as other information about those obligations. The amendments are effective upon issuance. The adoption of this ASU did not have an impact on the Company’s financial position or results of operations. | ||||
In July 2013, the FASB issued ASU No. 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this update permit the Fed Funds Effective Swap Rate (“OIS”) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to Treasury obligations of the U.S. government (“UST”) and the London Interbank Offered Rate (“LIBOR”). The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate under Topic 815. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company has not entered into any new derivative or hedging transactions, nor has the Company had to redesignate any existing hedging transaction relationships since the effective date of July 17, 2013. As a result, the adoption of this ASU did not have an impact on the Company’s financial position or results of operations. | ||||
In July 2013, the FASB issued ASU No. 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. The amendments in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The amendments do not require new recurring disclosures but they are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this update are effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this ASU is not expected to have an impact on the Company’s financial position or results of operations. | ||||
In January 2014, the FASB issued ASU No. 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). ASU 2014-01 modifies the conditions that a reporting entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. If the modified conditions are met, the amendments permit an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense (benefit). Additionally, ASU 2014-1 introduces new recurring disclosures about all investments in qualified affordable housing projects irrespective of the method used to account for the investments. Prior to these amendments, a reporting entity that invests in qualified affordable housing projects may elect to account for that investment using the level yield method if specific conditions are met. For investments that are not accounted for using the effective yield method, the investment must be accounted for under either the equity method or the cost method. Because the conditions which allow an entity to utilize the effective yield method were overly restrictive, this prevented many investors from using the effective yield method. Under the effective yield method, all tax credits, tax benefits, and the writedown of the investments are accounted for net of taxes as a component of income tax expense (benefit). This method more fairly represents the economics of the transaction than accounting under the equity method or cost method. The amendments in ASU 2014-01 are expected to enable more entities to qualify for the proportional amortization method to account for affordable housing project investments than the number of entities that currently qualify for the effective yield method. The amendments are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. For all entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2014, and interim periods within annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company early adopted ASU 2014-01 in the fourth quarter of 2013. See Note 11 – Investments in Qualified Affordable Housing Projects for the Company’s disclosures on its investments in LIHTC projects required under ASU 2014-01. |
Business_Combinations
Business Combinations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Combinations | ' | ||||||||
Note 2 – Business Combinations | |||||||||
The Company acquired Premier Commercial Bancorp (“PC Bancorp”) in a business combination completed during 2012, utilizing the purchase method of accounting. Accordingly, the results of operations of the acquired company have been included in the Company’s results of operations since the date of acquisition of July 31, 2012. Under the purchase method of accounting, assets and liabilities acquired are recorded at their estimated fair values, net of applicable income tax effects. The excess cost over the fair value of net assets acquired is recorded as goodwill. | |||||||||
After the close of business on July 31, 2012 (“the acquisition date” or “the reorganization date”), a reorganization took place creating a bank holding company for the Bank (“CU Bancorp”) which was followed by the merger of Premier Commercial Bancorp (“PC Bancorp”) (OTCBB: PCBP) into CU Bancorp and the merger of Premier Commercial Bank, N.A. (“PCB”) into the Bank. The merger resulted in the addition of two full service branches in Orange County, California. CU Bancorp acquired 100% of the outstanding common shares of PC Bancorp. | |||||||||
The reasons for the acquisition of Premier Commercial Bancorp (“PC Bancorp”) in 2012 and the factors reviewed by the Company’s Board of Directors in approving this transaction are as follows. In reaching its conclusion to acquire PC Bancorp, the Company’s board of directors considered a number of factors, including the following, without assigning any specific or relative weights to the factors: (i) strategic alternatives and the competitive banking environment in California; (ii) current banking and regulatory trends indicating that asset size and number and strength of distribution channels will become increasingly important in view of industry consolidation and regulatory burdens; (iii) the acquired entities business, operations, branch network, financial condition and earnings on a historical and prospective basis; (iv) the possibility of increased earnings for the acquired entities shareholders as shareholders of CU Bancorp; (v) the opinion of its investment bankers that the per share merger consideration to be paid to the shareholders of PC Bancorp in connection with the merger was fair to the shareholders of the Company from a financial point of view; (vi) the potential for synergies with the merger transaction; (vii) the terms of the merger agreement and the merger consideration paid to the PC Bancorp shareholders in relation to the market value and book value; (vii) the general impact that the merger could be expected to have on the constituencies serviced by the Company; (viii) the added convenience of access to an expanded branch network system that would enhance the Company’s presence in Orange County; and (ix) the prospect of operating efficiencies of a combined institution. | |||||||||
The value of the total consideration paid to PC Bancorp shareholders was approximately $42.3 million. The total value of the 3,721,382 CU Bancorp common shares issued to PC Bancorp shareholders on the acquisition date was $41,866,000, which was based on the closing stock price of $11.25 per share of the Company’s stock on July 31, 2012. The cash payment to stock option holders for cancellation of the PC Bancorp options was $455,000. Under the merger agreement, PC Bancorp shareholders received 0.9923 of one CU Bancorp share in exchange for each share of PC Bancorp common stock held. The fractional shares were paid out in cash using an exchange rate of $11.07 per share. Subsequent to the initial issuance of CU Bancorp common stock, two dissenting PC Bancorp shareholders elected to receive cash in lieu of the Company’s common stock. A total of 685 shares were exchanged for $7,000 in cash utilizing an exchange ratio of $10.25 per share. | |||||||||
The excess of the purchase price over the estimated fair value of the net assets acquired was $6.1 million, which was recorded as goodwill, is not subject to amortization, and is not deductible for tax purposes. In addition, assets acquired also included a core deposit intangible of $1.0 million, which is being amortized over a period of approximately ten years in proportion to the related estimated benefits. The amount of annual amortization will be higher in the initial years and will proportionally decline in subsequent years. The assets and liabilities of PC Bancorp that were accounted for at fair value, required either a third party analysis or an internal valuation analysis of the fair value of the assets and liabilities acquired. An analysis was performed on loans, investment securities, the SBA loan servicing asset, contractual lease obligations, deferred compensation, deposits and subordinated debentures as of the acquisition date. Balances that were considered to be at fair value at the date of acquisition were cash and cash equivalents, bank owned life insurance, interest rate swap contracts, other assets (interest receivable) and other liabilities (interest payable). | |||||||||
The following supplemental information is a condensed balance sheet showing the fair values of the assets acquired and the liabilities assumed as of the date of the acquisition related to the PC Bancorp merger (dollars in thousands): | |||||||||
Assets Acquired and Liabilities Assumed | July 31, | ||||||||
from Premier Commercial Bancorp | 2012 | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 42,172 | |||||||
Certificates of deposit in other financial institutions | 4,711 | ||||||||
Investment securities available-for-sale | 44,404 | ||||||||
Loans | 277,994 | ||||||||
Premises and equipment, net | 276 | ||||||||
Deferred tax asset | 7,163 | ||||||||
Goodwill | 6,137 | ||||||||
Core deposit intangible | 1,005 | ||||||||
Bank owned life insurance | 3,665 | ||||||||
Accrued interest receivable and other assets | 9,503 | ||||||||
Total Assets | 397,030 | ||||||||
Liabilities: | |||||||||
Deposits | 334,084 | ||||||||
Subordinated debentures | 9,075 | ||||||||
Accrued interest payable and other liabilities | 11,549 | ||||||||
Total Liabilities | 354,708 | ||||||||
Total Purchase Price | $ | 42,322 | |||||||
Cash and cash equivalents | $ | 42,172 | |||||||
Stock option payout to PC Bancorp employees and Directors | (455 | ) | |||||||
Fractional shares payout | (1 | ) | |||||||
Cash and cash equivalents acquired, net of cash paid | $ | 41,716 | |||||||
The Company acquired on July 31, 2012, as part of the PC Bancorp acquisition, loans with a fair value of $278.0 million of which $6.8 million were on non-accrual. | |||||||||
The Company recorded a net fair value discount of $14.5 million on the loans acquired in the PC Bancorp transaction. At acquisition date, $12.3 million of this amount was accretable into interest income over time. The remaining $2.2 million of the net fair value discount is associated with purchased credit impaired (“PCI”) loans and portions, or all of this discount will be accreted into income over time once these loans become performing or are paid off. | |||||||||
The accompanying financial statements include the accounts of PC Bancorp since the acquisition date. The following supplemental pro forma information discloses selected financial information for the periods indicated as though the PC Bancorp merger had been completed as of January 1, 2011. The 2012 pro forma net income includes non-recurring merger expenses related to the PC Bancorp merger for investment banking, legal, accounting, systems conversion and other professional fees, net of tax, totaling approximately $2.6 million. The 2011 pro forma net income includes non-recurring merger expenses related to the PC Bancorp merger for legal, accounting, and other professional fees, net of tax, totaling approximately $183,000. (dollars in thousands, except per share data) | |||||||||
Supplemental Proforma Financial Data | Twelve Months Ended | ||||||||
PC Bancorp Acquisition | December 31, | ||||||||
2012 | 2011 | ||||||||
Net Interest Income | $ | 42,939 | $ | 41,529 | |||||
Net Income | $ | 2,281 | $ | 2,787 | |||||
Diluted earnings per share | $ | 0.21 | $ | 0.27 |
Computation_of_Book_Value_and_
Computation of Book Value and Tangible Book Value per Common Share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Computation of Book Value and Tangible Book Value per Common Share | ' | ||||||||
Note 3—Computation of Book Value and Tangible Book Value per Common Share | |||||||||
Book value per common share was calculated by dividing total shareholders’ equity by the number of common shares issued and outstanding. Tangible book value per common share was calculated by dividing tangible shareholders’ equity by the number of common shares issued and outstanding. The tables below present the computation of book value and tangible book value per common share as of the dates indicated (dollars in thousands, except per share data): | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Total Shareholders’ Equity | $ | 137,924 | $ | 125,623 | |||||
Less: Goodwill | 12,292 | 12,292 | |||||||
Less: Core deposit and leasehold right intangibles | 2,525 | 1,747 | |||||||
Tangible Shareholders’ Equity | $ | 123,107 | $ | 111,584 | |||||
Common shares issued and outstanding | 11,081,364 | 10,758,674 | |||||||
Book value per common share | $ | 12.45 | $ | 11.68 | |||||
Tangible book value per common share | $ | 11.11 | $ | 10.37 | |||||
Computation_of_Earnings_per_Co
Computation of Earnings per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Earnings per Common Share | ' | ||||||||||||
Note 4—Computation of Earnings per Common Share | |||||||||||||
Basic and diluted earnings per common share were determined by dividing the net income by the applicable basic and diluted weighted average common shares outstanding. The following table shows weighted average basic shares outstanding, potential dilutive shares related to stock options, unvested restricted stock, and weighted average diluted shares for each of the periods indicated (dollars in thousands, except per share data): | |||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Income | $ | 9,785 | $ | 1,727 | $ | 1,467 | |||||||
Weighted average basic common shares outstanding | 10,567,436 | 8,283,599 | 6,460,104 | ||||||||||
Dilutive effect of potential common share issuances from stock options and restricted stock | 269,425 | 127,150 | 175,758 | ||||||||||
Weighted average diluted common shares outstanding | 10,836,861 | 8,410,749 | 6,635,862 | ||||||||||
Income per common share | |||||||||||||
Basic | $ | 0.93 | $ | 0.21 | $ | 0.23 | |||||||
Diluted | $ | 0.9 | $ | 0.21 | $ | 0.22 | |||||||
Anti-dilutive shares not included in the calculation of diluted earnings per share | 81,000 | 245,833 | 247,083 | ||||||||||
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
Note 5 – Investment Securities | |||||||||||||||||||||||||
The Company’s investment securities portfolio has been classified as available-for-sale, and is recorded at estimated fair market value. | |||||||||||||||||||||||||
The following tables present the amortized cost and estimated fair values of investment securities by major category as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||||||
December 31, 2013 – Available-for-sale: | Amortized Cost | Gains | Losses | Net | Estimated Fair | ||||||||||||||||||||
Non-credit | Value | ||||||||||||||||||||||||
Gains on | |||||||||||||||||||||||||
Other–than- | |||||||||||||||||||||||||
temporarily | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
U.S. Govt Agency and Sponsored Agency – Note Securities | $ | 4,153 | $ | 1 | $ | 2 | $ | 0 | $ | 4,152 | |||||||||||||||
U.S. Govt Agency – SBA Securities | 50,521 | 875 | 491 | 0 | 50,905 | ||||||||||||||||||||
U.S. Govt Agency – GNMA Mortgage-Backed Securities | 28,107 | 180 | 909 | 0 | 27,378 | ||||||||||||||||||||
U.S. Govt Sponsored Agency – CMO & Mortgage-Backed Securities | 15,348 | 345 | 479 | 0 | 15,214 | ||||||||||||||||||||
Corporate Securities | 5,086 | 125 | 0 | 0 | 5,211 | ||||||||||||||||||||
Municipal Securities | 3,621 | 9 | 2 | 0 | 3,628 | ||||||||||||||||||||
Total investment securities | $ | 106,836 | $ | 1,535 | $ | 1,883 | $ | 0 | $ | 106,488 | |||||||||||||||
Gross Unrealized | |||||||||||||||||||||||||
December 31, 2012 – Available-for-sale: | Amortized Cost | Gains | Losses | Net | Estimated Fair | ||||||||||||||||||||
Non-credit | Value | ||||||||||||||||||||||||
Gains on | |||||||||||||||||||||||||
Other–than- | |||||||||||||||||||||||||
temporarily | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
U.S. Govt Agency and Sponsored Agency – Note Securities | $ | 18,888 | $ | 24 | $ | 1 | $ | 0 | $ | 18,911 | |||||||||||||||
U.S. Govt Agency – SBA Securities | 42,308 | 703 | 32 | 0 | 42,979 | ||||||||||||||||||||
U.S. Govt Agency – GNMA Mortgage-Backed Securities | 22,237 | 728 | 5 | 0 | 22,960 | ||||||||||||||||||||
U.S. Govt Sponsored Agency – CMO & Mortgage-Backed Securities | 12,335 | 696 | 0 | 0 | 13,031 | ||||||||||||||||||||
Corporate Securities | 10,311 | 235 | 0 | 0 | 10,546 | ||||||||||||||||||||
Municipal Securities | 6,831 | 3 | 18 | 0 | 6,816 | ||||||||||||||||||||
Private Issue CMO Securities | 2,874 | 0 | 0 | 36 | 2,910 | ||||||||||||||||||||
Total investment securities | $ | 115,784 | $ | 2,389 | $ | 56 | $ | 36 | $ | 118,153 | |||||||||||||||
The Company’s investment securities portfolio at December 31, 2013, consists of U.S. Agency and U.S. Sponsored Agency issued AAA and AA rated investment-grade securities, investment grade corporate bond securities, and municipal securities. Securities with a market value of $11.8 million and $23.3 million were pledged to secure securities sold under agreements to repurchase at December 31, 2013 and December 31, 2012, respectively. See Note 13 – Borrowings and Subordinated Debentures. Securities with a market value of $11.0 million were pledged to secure a certificate of deposit of $10.0 million with the State of California Treasurer’s office at both December 31, 2013 and December 31, 2012. Securities with a market value of $29.3 million and $16.0 million were pledged to secure outstanding standby letters of credit confirmed/issued by a correspondent bank for the benefit of our customers in the amount of $21.9 million and $12.7 million at December 31, 2013 and December 31, 2012, respectively. Securities with a market value of $275,000 and $281,000 were pledged to secure local agency deposits at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||
The Company had no securities that were classified as other-than-temporarily impaired at December 31, 2013. | |||||||||||||||||||||||||
The following tables present investment securities with unrealized losses that are considered to be temporarily-impaired and other-than-temporarily impaired, summarized and classified according to the duration of the loss period as of the dates indicated (dollars in thousands). | |||||||||||||||||||||||||
< 12 Continuous | > 12 Continuous | Total | |||||||||||||||||||||||
Months | Months | ||||||||||||||||||||||||
December 31, 2013 | Fair | Net | Fair | Net | Fair | Net | |||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Temporarily-impaired available-for-sale investment securities: | |||||||||||||||||||||||||
U.S. Govt. – Agency and Sponsored Agency Note Securities | $ | 1,041 | $ | 2 | $ | 0 | $ | 0 | $ | 1,041 | $ | 2 | |||||||||||||
U.S. Govt. Agency – SBA Securities | 11,686 | 491 | 0 | 0 | 11,686 | 491 | |||||||||||||||||||
U.S. Govt. Agency – GNMA Mortgage-Backed Securities | 15,693 | 721 | 1,864 | 188 | 17,557 | 909 | |||||||||||||||||||
U.S. Govt. Sponsored Agency CMO & Mortgage-Backed Securities | 7,650 | 479 | 0 | 0 | 7,650 | 479 | |||||||||||||||||||
Municipal Securities | 0 | 0 | 1,029 | 2 | 1,029 | 2 | |||||||||||||||||||
Total temporarily-impaired available-for-sale investment securities | $ | 36,070 | $ | 1,693 | $ | 2,893 | $ | 190 | $ | 38,963 | $ | 1,883 | |||||||||||||
< 12 Continuous | > 12 Continuous | Total | |||||||||||||||||||||||
Months | Months | ||||||||||||||||||||||||
December 31, 2012 | Fair | Net | Fair | Net | Fair | Net | |||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Temporarily-impaired available-for-sale investment securities: | |||||||||||||||||||||||||
U.S. Govt. – Agency and Sponsored Agency Note Securities | $ | 2,209 | $ | 1 | $ | 0 | $ | 0 | $ | 2,209 | $ | 1 | |||||||||||||
U.S. Govt. Agency SBA Securities | 5,124 | 32 | 0 | 0 | 5,124 | 32 | |||||||||||||||||||
U.S. Govt. Sponsored Agency CMO & Mortgage-Backed Securities | 2,126 | 5 | 0 | 0 | 2,126 | 5 | |||||||||||||||||||
Municipal Securities | 6,293 | 18 | 0 | 0 | 6,293 | 18 | |||||||||||||||||||
Total temporarily-impaired available-for-sale investment securities | $ | 15,752 | $ | 56 | $ | 0 | $ | 0 | $ | 15,752 | $ | 56 | |||||||||||||
Other-than-temporarily impaired available-for-sale investment securities: | |||||||||||||||||||||||||
Private Issue CMO Securities | 0 | 0 | 1,235 | 65 | 1,235 | 65 | |||||||||||||||||||
Total temporarily-impaired and other-than-temporarily impaired available-for-sale investment securities | $ | 15,752 | $ | 56 | $ | 1,235 | $ | 65 | $ | 16,987 | $ | 121 | |||||||||||||
The amortized cost, estimated fair value and average yield of debt securities at December 31, 2013, are reflected in the table below (dollars in thousands). Maturity categories are determined as follows: | |||||||||||||||||||||||||
• | U.S. Govt. Agency and U.S. Govt. Sponsored Agency bonds and notes – maturity date | ||||||||||||||||||||||||
• | U.S. Govt. Sponsored Agency CMO or Mortgage-Backed Securities, U.S. Govt. Agency GNMA Mortgage-Backed Securities and U.S. Gov. Agency SBA Securities – estimated cash flow taking into account estimated pre-payment speeds | ||||||||||||||||||||||||
• | Investment grade Corporate Bonds and Municipal securities – maturity date | ||||||||||||||||||||||||
Although, U.S. Government Agency and U.S. Government Sponsored Agency mortgage-backed and CMO securities have contractual maturities through 2048, the expected maturity will differ from the contractual maturities because borrowers or issuers may have the right to prepay such obligations without penalties. | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Maturities Schedule of Securities | Amortized | Fair Value | Weighted | ||||||||||||||||||||||
Cost | Average | ||||||||||||||||||||||||
Yield | |||||||||||||||||||||||||
Due through one year | $ | 17,574 | $ | 17,759 | 1.69 | % | |||||||||||||||||||
Due after one year through five years | 37,733 | 38,168 | 2.04 | % | |||||||||||||||||||||
Due after five years through ten years | 25,486 | 24,952 | 2.41 | % | |||||||||||||||||||||
Due after ten years | 26,043 | 25,609 | 2.75 | % | |||||||||||||||||||||
Total | $ | 106,836 | $ | 106,488 | 2.24 | % | |||||||||||||||||||
The weighted average yields in the above table are based on effective rates of book balances at the end of the year. Yields are derived by dividing interest income, adjusted for amortization of premiums and accretion of discounts, by total amortized cost. | |||||||||||||||||||||||||
The Company evaluated all securities for declines in fair value below the securities cost basis for possible impairment as of December 31, 2013. | |||||||||||||||||||||||||
The Company’s six private issue CMO securities at December 31, 2012 were classified as substandard assets. The Company recorded an other-than-temporary impairment credit loss of $155,000 on these private issue CMO securities in 2012. As a result of an unsolicited bid from a broker dealer, in January of 2013, the Company sold all six of its Private Issue CMO securities at a net gain of $5,000. There were no private issue CMO securities sold in 2012. | |||||||||||||||||||||||||
The following table summarizes activity related to the credit component recognized in earnings on investment securities (Private Issue CMO Securities) held by the Company for which a portion of other-than-temporary impairment was recognized in other comprehensive income (loss) for the dates and periods indicated (dollars in thousands): | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Balance at the beginning of the period, January 1, | $ | 871 | $ | 973 | $ | 914 | |||||||||||||||||||
Credit valuation security impairment charge (gain on sale) and recorded through the Statement of Income | (5 | ) | 155 | 264 | |||||||||||||||||||||
Total cumulative inception to date valuation impairment charge on securities | 866 | 1,128 | 1,178 | ||||||||||||||||||||||
Less actual credit loss recognized from sale of securities | (866 | ) | 0 | 0 | |||||||||||||||||||||
Less actual credit loss recognized on principal | 0 | (257 | ) | (205 | ) | ||||||||||||||||||||
Total credit loss recognized on securities | (866 | ) | (257 | ) | (205 | ) | |||||||||||||||||||
Balance at the end of the period, December 31, | $ | 0 | $ | 871 | $ | 973 | |||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011 the Company recognized gross gains and (losses) on sales of available-for-sale securities in the amount of $47,000 $0 and $219,000, respectively. The Company had net proceeds from the sale of available-for-sale securities of $7.0 million $17.3 million and $4.8 million at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Investments in FHLB Common Stock | |||||||||||||||||||||||||
The Company’s investment in the common stock of the FHLB of San Francisco is carried at cost and was $4.7 million and $4.9 million as of December 31, 2013 and 2012, respectively. See Note 13—Borrowings and Subordinated Debentures for a detailed discussion regarding the Company’s borrowings and the requirements to purchase FHLB common stock. | |||||||||||||||||||||||||
The FHLB has declared and paid cash dividends in 2012 and 2013, and has repurchased certain amounts of the Company’s excess stock at the Company’s carrying value. The Company has received cash dividends from the FHLB of $199,000 and $49,000 for the years ending December 31, 2013 and 2012, respectively. As part of the acquisition of PC Bancorp, the Company acquired $1.9 million of FHLB common stock in 2012. The FHLB made common stock redemptions of $150,300 and $187,200 during the years ending December 31, 2013, and 2012, respectively. | |||||||||||||||||||||||||
The FHLB has been classified as one of the Company’s primary correspondent banks and is evaluated on a quarterly basis as part of the Company’s evaluation of its correspondent banking relationships under Federal Reserve Board Regulation F. | |||||||||||||||||||||||||
The investment in FHLB stock is periodically evaluated for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. No impairment losses have been recorded through December 31, 2013 and based on the current financial condition of the FHLB of San Francisco, no impairment losses appear necessary or warranted. | |||||||||||||||||||||||||
The Company’s investment in FHLB stock is included in other assets on the accompanying balance sheets. |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||||||
Note 6 – Loans | |||||||||||||||||||||||||||||
The following table presents the composition of the loan portfolio as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Commercial and Industrial Loans: | $ | 299,473 | $ | 262,637 | |||||||||||||||||||||||||
Loans Secured by Real Estate: | |||||||||||||||||||||||||||||
Owner-Occupied Nonresidential Properties | 197,605 | 181,844 | |||||||||||||||||||||||||||
Other Nonresidential Properties | 271,818 | 246,450 | |||||||||||||||||||||||||||
Construction, Land Development and Other Land | 47,074 | 48,528 | |||||||||||||||||||||||||||
1-4 Family Residential Properties | 65,711 | 62,037 | |||||||||||||||||||||||||||
Multifamily Residential Properties | 33,780 | 31,610 | |||||||||||||||||||||||||||
Total Loans Secured by Real Estate | 615,988 | 570,469 | |||||||||||||||||||||||||||
Other Loans: | 17,733 | 21,779 | |||||||||||||||||||||||||||
Total Loans | $ | 933,194 | $ | 854,885 | |||||||||||||||||||||||||
Loans are made to individuals, as well as commercial and tax exempt entities. Specific loan terms vary as to interest rate, repayment, and collateral requirements based on the type of loan requested and the credit worthiness of the prospective borrower. Credit risk tends to be geographically concentrated in Southern California where a majority of the Company’s loan customers are located. | |||||||||||||||||||||||||||||
The Company’s extensions of credit are governed by its credit policies which are established to control the quality, structure and adherence to applicable law of the Company’s loans. These policies are reviewed and approved by the Board of Directors on a regular basis. | |||||||||||||||||||||||||||||
Commercial and Industrial Loans: Commercial credit is extended primarily to middle market businesses, professional enterprises and their owners for business purposes. Typical loan types are working capital loans, loans for financing capital expenditures, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or in a meaningful amount by the businesses’ major owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. | |||||||||||||||||||||||||||||
Commercial Real Estate Loans: The Company’s goal is to create and maintain a high quality portfolio of commercial real estate loans with customers who meet the quality and relationship profitability objectives of the Company. These loans include owner-occupied nonresidential properties and other nonresidential properties. Owner-occupied nonresidential property loans are subject to underwriting standards and processes similar to commercial and industrial loans. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the business. Other nonresidential property loans are also subject to strict underwriting standards and processes. For these loans the Company looks at the underlying cash flows from these properties, which include: the debt service coverage, the cash flow from the existing tenants in the property, the historical vacancy of the property, the financial strength of the tenants, and the type and duration of signed leases. Loan performance of commercial real estate loans may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. | |||||||||||||||||||||||||||||
Construction and Land Development Loans: The Company defines construction loans as loans where the loan proceeds are controlled by the Company and used for the improvement of real estate in which the Company holds a deed of trust. Land development loans are loans on vacant land that may be developed by the owner of the property sometime in the future. Due to the inherent risk in this type of loan, they are subject to other specific underwriting policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely. | |||||||||||||||||||||||||||||
Residential Loans: The Company originates residential real estate loans as either home equity lines of credit or multifamily “apartment loans.” Home equity lines of credit (“HELOCs”) are made to individuals and to business principals with whom the Company maintains, in most cases, either a business lending or deposit relationship. The underwriting standards are typical of home equity products with loan to value and debt service considerations. Multifamily loans are underwritten based on the projected cash flows of the property with consideration of market conditions and values where the property is located. | |||||||||||||||||||||||||||||
Other Loans: The Company originates loans to individuals for personal expenditures and investments that the Company maintains in most cases either a deposit or business relationship with. Also included in this category are loans to non-depository financial institutions. | |||||||||||||||||||||||||||||
Purchased loans: Loans acquired in acquisitions are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan loss. Loans acquired with deteriorated credit quality are loans that have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect principal and interest payments according to the contractual terms of the original loan agreement. Evidence of credit quality deterioration as of the purchase date may include factors such as past due and non-accrual status. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the credit loss. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. | |||||||||||||||||||||||||||||
Restructured loans: Loans may be restructured in an effort to maximize collections. The Company may use various restructuring techniques, including, but not limited to, deferral of past due interest or principal, redeeming past due taxes, reduction of interest rates, extending maturities and modification of amortization schedules. The Company does not typically forgive principal balances or past due interest prior to pay-off or surrender of the property. | |||||||||||||||||||||||||||||
Concentrations | |||||||||||||||||||||||||||||
The Company makes commercial, construction, commercial real estate, and consumer home equity loans to customers primarily in Los Angeles, Orange and Ventura Counties. As an abundance of caution, the Company may require commercial real estate collateral on a loan classified as a commercial loan. At December 31, 2013, loans secured by real estate collateral accounted for approximately 66.0% of the loan portfolio. Of these loans, 90.9% are secured by first trust deed liens and 9.1% are secured by second trust deed liens. In addition, 32.1% are secured by owner-occupied non-residential properties. Loans secured by first trust deeds on commercial real estate generally have an initial loan to value ratio of not more than 75%, except for SBA guaranteed loans which may exceed this level. The Company’s policy for requiring collateral is to obtain collateral whenever it is available or desirable; depending upon the degree of risk in the proposed credit transaction. In addition, 24.6% of total loans have been secured by a UCC filing on the business property of the borrower. Approximately 8.0% of loans are unsecured. The Company’s loans are expected to be repaid from cash flows or from proceeds from the sale of selected assets of the borrowers. | |||||||||||||||||||||||||||||
A substantial portion of the Company’s customers’ ability to honor their contracts is dependent on the economy in the area. The Company’s goal is to continue to maintain a diversified loan portfolio, which requires the loans to be well collateralized and supported by cash flows. | |||||||||||||||||||||||||||||
The following table is a breakout of the Company’s gross loans stratified by the industry concentration of the borrower by their respective NAICS code as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Real Estate | $ | 381,830 | $ | 312,625 | |||||||||||||||||||||||||
Manufacturing | 83,319 | 77,203 | |||||||||||||||||||||||||||
Hotel/Lodging | 76,143 | 82,483 | |||||||||||||||||||||||||||
Construction | 62,835 | 55,385 | |||||||||||||||||||||||||||
Wholesale | 60,291 | 54,218 | |||||||||||||||||||||||||||
Professional Services | 49,739 | 44,714 | |||||||||||||||||||||||||||
Finance | 46,393 | 59,791 | |||||||||||||||||||||||||||
Healthcare | 38,662 | 41,857 | |||||||||||||||||||||||||||
Restaurant/Food Service | 35,244 | 24,105 | |||||||||||||||||||||||||||
Other Services | 21,448 | 23,239 | |||||||||||||||||||||||||||
Retail | 23,157 | 30,302 | |||||||||||||||||||||||||||
Administrative Management | 15,218 | 19,078 | |||||||||||||||||||||||||||
Information | 11,709 | 4,492 | |||||||||||||||||||||||||||
Education | 10,270 | 4,843 | |||||||||||||||||||||||||||
Transportation | 9,531 | 11,431 | |||||||||||||||||||||||||||
Entertainment | 6,207 | 8,132 | |||||||||||||||||||||||||||
Other | 1,198 | 987 | |||||||||||||||||||||||||||
Total | $ | 933,194 | $ | 854,885 | |||||||||||||||||||||||||
SBA Loans | |||||||||||||||||||||||||||||
As part of the acquisition of PC Bancorp, the Company acquired loans that were originated under the guidelines of the Small Business Administration (“SBA”) program. The total portfolio of the SBA contractual loan balances being serviced by the Company at December 31, 2013 was $111.5 million, of which $76.1 million has been sold. Of the $35.4 million remaining on the Company’s books, $24.6 million is un-guaranteed and $10.8 million is guaranteed by the SBA. | |||||||||||||||||||||||||||||
For SBA guaranteed loans, a secondary market exists to purchase the guaranteed portion of these loans with the Company continuing to “service” the entire loan. The secondary market for guaranteed loans is comprised of investors seeking long term assets with yields that adapt to the prevailing interest rates. These investors are typically financial institutions, insurance companies, pension funds, and other types of investors specializing in the acquisition of this product. When a decision to sell the guaranteed portion of an SBA loan is made by the Company, bids are solicited from secondary market investors and the loan is normally sold to the highest bidder. | |||||||||||||||||||||||||||||
While there were no loans classified as held for sale at December 31, 2013, the Company has originated approximately $1.8 million in SBA 7a loans, of which $1.3 million is guaranteed by the SBA. The Company does not currently plan on selling these loans, but it may choose to do so in the future. | |||||||||||||||||||||||||||||
Allowance for Loan Loss | |||||||||||||||||||||||||||||
The allowance for loan loss is a reserve established through a provision for loan losses charged to expense, which represents managements’ best estimate of probable losses that exist within the loan portfolio. The Allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. The Company’s allowance for loan loss methodology includes allowance allocations calculated in accordance with ASC Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Accordingly, the methodology is based on historical loss experiences by type of credit, specific homogeneous risk pools, and specific loss allocations, with adjustments for current events and conditions. During the 4th quarter of 2012, management enhanced its allowance methodology to expand the number of loan segments evaluated for historical losses and utilized peer historical loss data to evaluate potential loss exposure for those loan segments where the Company had no historical loss experience. There was no change in the quantitative effect on the portfolio segments. In loan segments where the Company has no historical loss experience, the loss experience of the Company’s peer banks, as reflected in the Uniform Bank Peer Report (“UPBR”) has been utilized. The Company’s process for determining the appropriate level of the allowance for loan loss is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to non-accrual, past due, potential problem and criticized loans. Net charge-offs and recoveries, are also factored into the provision for loan losses. The provision for loan losses also reflects the totality of actions taken on all loans for a particular period. In other words, the amount of the provision reflects not only the necessary increases in the allowance for loan loss related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in required allowance for specific loans or loan pools. | |||||||||||||||||||||||||||||
The level of the Allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the Allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the Allowance is dependent upon a variety of factors beyond the Company’s control, including among other things, the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. | |||||||||||||||||||||||||||||
The following is a summary of activity for the allowance for loan loss for the dates and periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Allowance for loan loss at beginning of year | $ | 8,803 | $ | 7,495 | $ | 5,860 | |||||||||||||||||||||||
Provision for loan losses | 2,852 | 1,768 | 1,442 | ||||||||||||||||||||||||||
Net (charge-offs) recoveries: | |||||||||||||||||||||||||||||
Charge-offs | (1,912 | ) | (687 | ) | (593 | ) | |||||||||||||||||||||||
Recoveries | 860 | 227 | 786 | ||||||||||||||||||||||||||
Net (charge-offs) recoveries | (1,052 | ) | (460 | ) | 193 | ||||||||||||||||||||||||
Allowance for loan loss at end of year | $ | 10,603 | $ | 8,803 | $ | 7,495 | |||||||||||||||||||||||
Net (charge-offs) recoveries to average loans | (0.12 | )% | (0.08 | )% | 0.04 | % | |||||||||||||||||||||||
Allowance for loan loss to total loans | 1.14 | % | 1.03 | % | 1.53 | % | |||||||||||||||||||||||
Allowance for loan loss to total loans accounted for at historical cost, which excludes purchased loans acquired by acquisition | 1.5 | % | 1.54 | % | 1.75 | % | |||||||||||||||||||||||
The allowance for losses on unfunded loan commitments to extend credit is primarily related to commercial lines of credit and construction loans. The amount of unfunded loan commitments at December 31, 2013 and 2012 was $345.9 million and $295.2 million, respectively. The inherent risk associated with a loan is evaluated at the same time the credit is extended. However, the allowance held for the commitments is reported in other liabilities within the accompanying balance sheets and not as part of the allowance for loan loss in the above table. The allowance for the loss on unfunded loan commitments to extend credit was $329,000 and $256,000 at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
The following table presents, by loan portfolio segment, the changes in the allowance for loan loss for the dates and periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial | Construction, | Commercial | Other | Total | |||||||||||||||||||||||||
and | Land | and Other | |||||||||||||||||||||||||||
Industrial | Development | Real Estate | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
Year ended – December 31 2013 | |||||||||||||||||||||||||||||
Allowance for loan loss – Beginning balance | $ | 4,572 | $ | 2,035 | $ | 2,084 | $ | 112 | $ | 8,803 | |||||||||||||||||||
Provision for loan losses | 2,596 | (1,678 | ) | 1,990 | (56 | ) | 2,852 | ||||||||||||||||||||||
Net (charge-offs) recoveries: | |||||||||||||||||||||||||||||
Charge-offs | (1,704 | ) | (0 | ) | (200 | ) | (8 | ) | (1,912 | ) | |||||||||||||||||||
Recoveries | 70 | 763 | 12 | 15 | 860 | ||||||||||||||||||||||||
Total net (charge-offs) recoveries | (1,634 | ) | 763 | (188 | ) | 7 | (1,052 | ) | |||||||||||||||||||||
Ending balance | $ | 5,534 | $ | 1,120 | $ | 3,886 | $ | 63 | $ | 10,603 | |||||||||||||||||||
Commercial | Construction, | Commercial | Other | Total | |||||||||||||||||||||||||
and | Land | and Other | |||||||||||||||||||||||||||
Industrial | Development | Real Estate | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
Year ended – December 31 2012 | |||||||||||||||||||||||||||||
Allowance for loan loss – Beginning balance | $ | 3,541 | $ | 752 | $ | 2,911 | $ | 291 | $ | 7,495 | |||||||||||||||||||
Provision for loan losses | 1,399 | 1,283 | (733 | ) | (181 | ) | 1,768 | ||||||||||||||||||||||
Net (charge-offs) recoveries: | |||||||||||||||||||||||||||||
Charge-offs | (444 | ) | (0 | ) | (233 | ) | (10 | ) | (687 | ) | |||||||||||||||||||
Recoveries | 76 | 0 | 139 | 12 | 227 | ||||||||||||||||||||||||
Total net (charge-offs) recoveries | (368 | ) | 0 | (94 | ) | 2 | (460 | ) | |||||||||||||||||||||
Ending balance | $ | 4,572 | $ | 2,035 | $ | 2,084 | $ | 112 | $ | 8,803 | |||||||||||||||||||
The following table presents both the allowance for loan loss and the associated loan balance classified by loan portfolio segment and by credit evaluation methodology (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial | Construction, | Commercial | Other | Total | |||||||||||||||||||||||||
and | Land | and Other | |||||||||||||||||||||||||||
Industrial | Development | Real Estate | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Allowance for loan loss: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4 | $ | 0 | $ | 0 | $ | 0 | $ | 4 | |||||||||||||||||||
Collectively evaluated for impairment | 5,520 | 1,120 | 3,886 | 63 | 10,589 | ||||||||||||||||||||||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 10 | 0 | 0 | 0 | 10 | ||||||||||||||||||||||||
Total Allowance for Loan Loss | $ | 5,534 | $ | 1,120 | $ | 3,886 | $ | 63 | $ | 10,603 | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,640 | $ | 0 | $ | 3,680 | $ | 0 | $ | 6,320 | |||||||||||||||||||
Collectively evaluated for impairment | 295,787 | 47,074 | 561,952 | 17,733 | 922,546 | ||||||||||||||||||||||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 1,046 | 0 | 3,282 | 0 | 4,328 | ||||||||||||||||||||||||
Total Loans Receivable | $ | 299,473 | $ | 47,074 | $ | 568,914 | $ | 17,733 | $ | 933,194 | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Allowance for loan loss: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 11 | $ | 0 | $ | 0 | $ | 0 | $ | 11 | |||||||||||||||||||
Collectively evaluated for impairment | 4,552 | 2,035 | 2,084 | 112 | 8,783 | ||||||||||||||||||||||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 9 | 0 | 0 | 0 | 9 | ||||||||||||||||||||||||
Total Allowance for Loan Loss | $ | 4,572 | $ | 2,035 | $ | 2,084 | $ | 112 | $ | 8,803 | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 885 | $ | 1,201 | $ | 3,498 | $ | 0 | $ | 5,584 | |||||||||||||||||||
Collectively evaluated for impairment | 260,982 | 47,327 | 512,313 | 21,775 | 842,397 | ||||||||||||||||||||||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 770 | 0 | 6,130 | 4 | 6,904 | ||||||||||||||||||||||||
Total Loans Receivable | $ | 262,637 | $ | 48,528 | $ | 521,941 | $ | 21,779 | $ | 854,885 | |||||||||||||||||||
Credit Quality of Loans | |||||||||||||||||||||||||||||
The Company utilizes an internal loan classification system as a means of reporting problem and potential problem loans. Under the Company’s loan risk rating system, loans are classified as “Pass,” with problem and potential problem loans as “Special Mention,” “Substandard” “Doubtful” and “Loss”. Individual loan risk ratings are updated continuously or at any time the situation warrants. In addition, management regularly reviews problem loans to determine whether any loan requires a classification change, in accordance with the Company’s policy and applicable regulations. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The internal loan classification risk grading system is based on experiences with similarly graded loans. | |||||||||||||||||||||||||||||
The Company’s internally assigned grades are as follows: | |||||||||||||||||||||||||||||
• | Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. There are several different levels of Pass rated credits, including “Watch” which is considered a transitory grade for pass rated loans that require greater monitoring. Loans not meeting the criteria of special mention, substandard, doubtful or loss that have been analyzed individually as part of the above described process are considered to be pass-rated loans. | ||||||||||||||||||||||||||||
• | Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. Special Mention loans do not currently expose the Company to sufficient risk to warrant classification as a Substandard, Doubtful or Loss classification, but possess weaknesses that deserve management’s close attention. | ||||||||||||||||||||||||||||
• | Substandard – loans that have a well-defined weakness based on objective evidence and can be characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||
• | Doubtful – loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. | ||||||||||||||||||||||||||||
• | Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. | ||||||||||||||||||||||||||||
The following tables present the risk category of loans by class of loans based on the most recent internal loan classification as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, 2013 | Commercial | Construction, | Commercial | Other | Total | ||||||||||||||||||||||||
and | Land | and Other | |||||||||||||||||||||||||||
Industrial | Development | Real Estate | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
Pass | $ | 289,594 | $ | 47,074 | $ | 547,600 | $ | 17,731 | $ | 901,999 | |||||||||||||||||||
Special Mention | 1,540 | 0 | 2,613 | 0 | 4,153 | ||||||||||||||||||||||||
Substandard | 8,339 | 0 | 18,701 | 2 | 27,042 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total | $ | 299,473 | $ | 47,074 | $ | 568,914 | $ | 17,733 | $ | 933,194 | |||||||||||||||||||
December 31, 2012 | Commercial | Construction, | Commercial | Other | Total | ||||||||||||||||||||||||
and | Land | and Other | |||||||||||||||||||||||||||
Industrial | Development | Real Estate | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
Pass | $ | 250,624 | $ | 47,328 | $ | 493,768 | $ | 21,655 | $ | 813,375 | |||||||||||||||||||
Special Mention | 4,602 | 0 | 5,300 | 0 | 9,902 | ||||||||||||||||||||||||
Substandard | 7,411 | 1,200 | 22,873 | 119 | 31,603 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 5 | 5 | ||||||||||||||||||||||||
Total | $ | 262,637 | $ | 48,528 | $ | 521,941 | $ | 21,779 | $ | 854,885 | |||||||||||||||||||
Age Analysis of Past Due and Non-Accrual Loans | |||||||||||||||||||||||||||||
The following tables present an aging analysis of the recorded investment in past due and non-accrual loans as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, 2013 | 31-60 | 61-90 | Greater | Total | Total | Current | Total Loans | ||||||||||||||||||||||
Days | Days | than | Past Due | Non | |||||||||||||||||||||||||
Past Due | Past Due | 90 Days | and | Accrual | |||||||||||||||||||||||||
Past Due | Accruing | ||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 0 | $ | 241 | $ | 0 | $ | 241 | $ | 3,682 | $ | 295,550 | $ | 299,473 | |||||||||||||||
Construction, Land Development and Other Land | 0 | 0 | 0 | 0 | 0 | 47,074 | 47,074 | ||||||||||||||||||||||
Commercial and Other Real Estate | 0 | 0 | 0 | 0 | 5,874 | 563,040 | 568,914 | ||||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 0 | 17,733 | 17,733 | ||||||||||||||||||||||
Total | $ | 0 | $ | 241 | $ | 0 | $ | 241 | $ | 9,556 | $ | 923,397 | $ | 933,194 | |||||||||||||||
December 31, 2012 | 31-60 | 61-90 | Greater | Total | Total | Current | Total Loans | ||||||||||||||||||||||
Days | Days | than | Past Due | Non | |||||||||||||||||||||||||
Past Due | Past Due | 90 Days | and | Accrual | |||||||||||||||||||||||||
Past Due | Accruing | ||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 1,025 | $ | 0 | $ | 0 | $ | 1,025 | $ | 1,583 | $ | 260,029 | $ | 262,637 | |||||||||||||||
Construction, Land Development and Other Land | 0 | 0 | 0 | 0 | 1,200 | 47,328 | 48,528 | ||||||||||||||||||||||
Commercial and Other Real Estate | 2,884 | 0 | 0 | 2,884 | 7,742 | 511,315 | 521,941 | ||||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 5 | 21,774 | 21,779 | ||||||||||||||||||||||
Total | $ | 3,909 | $ | 0 | $ | 0 | $ | 3,909 | $ | 10,530 | $ | 840,446 | $ | 854,885 | |||||||||||||||
Included in the non-accrual column above are purchased credit impaired loans of $3.2 million and $4.9 million as of December 31, 2013 and 2012, respectively. Included in the current column are purchased credit impaired loans that have been returned to accrual status of $1.1 million and $2.0 million of as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
Impaired loans are evaluated by comparing the fair value of the collateral, 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. | |||||||||||||||||||||||||||||
A valuation allowance is established for an impaired loan when the fair value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are charged-off to realizable value instead of establishing a valuation allowance and are included, when applicable, in the table below as impaired loans “with no specific allowance recorded.” The valuation allowance disclosed below is included in the allowance for loan loss reported in the consolidated balance sheets as of December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable for the dates and periods indicated (dollars in thousands). This table excludes purchased credit impaired loans (loans acquired in acquisitions with deteriorated credit quality) of $4.3 million and $6.9 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest Income | |||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Recognized | |||||||||||||||||||||||||
Balance | Investment | ||||||||||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 2,540 | $ | 5,347 | $ | 0 | $ | 1,835 | $ | 0 | |||||||||||||||||||
Construction, Land Development and Other Land | 0 | 0 | 0 | 879 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 3,680 | 6,112 | 0 | 4,216 | 0 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and Industrial | 100 | 355 | 4 | 137 | 0 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial and Industrial | 2,640 | 5,702 | 4 | 1,972 | 0 | ||||||||||||||||||||||||
Construction, Land Development and Other Land | 0 | 0 | 0 | 879 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 3,680 | 6,112 | 0 | 4,216 | 0 | ||||||||||||||||||||||||
Total | $ | 6,320 | $ | 11,814 | $ | 4 | $ | 7,067 | $ | 0 | |||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest Income | |||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Recognized | |||||||||||||||||||||||||
Balance | Investment | ||||||||||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 677 | $ | 1,490 | $ | 0 | $ | 646 | $ | 0 | |||||||||||||||||||
Construction, Land Development and Other Land | 1,201 | 2,791 | 0 | 1,235 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 3,498 | 4,331 | 0 | 1,252 | 0 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and Industrial | 208 | 463 | 11 | 175 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 0 | 0 | 0 | 531 | 0 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial and Industrial | 885 | 1,953 | 11 | 821 | 0 | ||||||||||||||||||||||||
Construction, Land Development and Other Land | 1,201 | 2,791 | 0 | 1,235 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 3,498 | 4,331 | 0 | 1,783 | 0 | ||||||||||||||||||||||||
Total | $ | 5,584 | $ | 9,075 | $ | 11 | $ | 3,839 | $ | 0 | |||||||||||||||||||
The following is a summary of additional information pertaining to impaired loans for the periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Average recorded investment in impaired loans | $ | 7,067 | $ | 3,839 | |||||||||||||||||||||||||
Interest foregone on impaired loans | $ | 710 | $ | 308 | |||||||||||||||||||||||||
Cash collections applied to reduce principal balance | $ | 5,057 | $ | 111 | |||||||||||||||||||||||||
Interest income recognized on cash collections | $ | 0 | $ | 0 | |||||||||||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||
The Company’s loan portfolio contains certain loans that have been modified in a Troubled Debt Restructuring (“TDR”), where economic concessions have been granted to borrowers experiencing financial difficulties. Loans are restructured in an effort to maximize collections. Economic concessions can include: reductions to the interest rate, payment extensions, forgiveness of principal or other actions. | |||||||||||||||||||||||||||||
The modification process includes evaluation of impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the loan collateral. In these cases, management uses the current fair value of the collateral, less selling costs, to evaluate the loan for impairment. If management determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs and unamortized premium or discount) impairment is recognized through a specific allowance or a charge-off. | |||||||||||||||||||||||||||||
The following tables include the recorded investment and unpaid principal balances for troubled debt restructured loans for the periods ending December 31, 2013 and 2012 (dollars in thousands). This table includes two TDR loans that were purchased credit impaired. As of December 31, 2013, these loans had a recorded investment of $87,000 and unpaid principal balances of $149,000. | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | Recorded | Unpaid | Interest | ||||||||||||||||||||||||||
Investment | Principal | Income | |||||||||||||||||||||||||||
Balance | Recognized | ||||||||||||||||||||||||||||
Commercial and Industrial | $ | 541 | $ | 843 | $ | 0 | |||||||||||||||||||||||
Commercial and Other Real Estate | 2,173 | 2,785 | 0 | ||||||||||||||||||||||||||
Total | $ | 2,714 | $ | 3,628 | $ | 0 | |||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 314 | $ | 626 | $ | 5 | |||||||||||||||||||||||
Construction, Land Development and Other Land | 1,200 | 2,791 | 0 | ||||||||||||||||||||||||||
Commercial and Other Real Estate | 4,193 | 4,874 | 32 | ||||||||||||||||||||||||||
Total | $ | 5,707 | $ | 8,291 | $ | 37 | |||||||||||||||||||||||
The following tables show the pre- and post-modification recorded investment in troubled debt restructured loans by type of modification and loan segment that have occurred during the periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | Number | Pre-Modification | Post- | ||||||||||||||||||||||||||
of Loans | Recorded | Modification | |||||||||||||||||||||||||||
Investment | Recorded | ||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||
Reduced Interest Rate and Lengthened Amortization: | |||||||||||||||||||||||||||||
Commercial and Industrial | 1 | $ | 310 | $ | 310 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 0 | 0 | 0 | ||||||||||||||||||||||||||
Total | 1 | $ | 310 | $ | 310 | ||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Reduced Interest Rate and Lengthened Amortization: | |||||||||||||||||||||||||||||
Commercial and Industrial | 1 | $ | 60 | $ | 60 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 1 | 2,306 | 2,306 | ||||||||||||||||||||||||||
Total | 2 | $ | 2,366 | $ | 2,366 | ||||||||||||||||||||||||
Loans are restructured in an effort to maximize collections. There was no financial impact for specific reserves or from charge-offs for the modified loans included in the table above. Impairment analyses are performed on the Company’s troubled debt restructured loans in conjunction with the normal allowance for loan loss process. The Company’s troubled debt restructured loans are analyzed to ensure adequate cash flow or collateral supports the outstanding loan balance. | |||||||||||||||||||||||||||||
There have been no payment defaults in 2013 subsequent to modification on troubled debt restructured loans that have been modified within the last twelve months. | |||||||||||||||||||||||||||||
Loans Acquired Through Acquisition | |||||||||||||||||||||||||||||
The following table reflects the accretable net discount for loans acquired through acquisition, for the periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Balance, beginning of year | $ | 12,189 | $ | 2,585 | |||||||||||||||||||||||||
Accretion, included in interest income | (3,754 | ) | (2,785 | ) | |||||||||||||||||||||||||
Additions, due to acquisition | 0 | 12,315 | |||||||||||||||||||||||||||
Sold acquired loans | 0 | 284 | |||||||||||||||||||||||||||
Reclassifications to non-accretable yield | (523 | ) | (210 | ) | |||||||||||||||||||||||||
Balance, end of year | $ | 7,912 | $ | 12,189 | |||||||||||||||||||||||||
The above table reflects the fair value adjustment on the loans acquired from mergers that will be amortized to loan interest income based on the effective yield method over the remaining life of the loans. These amounts do not include the fair value adjustments on the purchased credit impaired loans acquired from mergers. | |||||||||||||||||||||||||||||
Purchased Credit Impaired Loans | |||||||||||||||||||||||||||||
Purchased Credit Impaired Loans (“PCI”) loans are acquired loans with evidence of deterioration of credit quality since origination and it is probable at the acquisition date, that the Company will not be able to collect all contractually required amounts. | |||||||||||||||||||||||||||||
When the timing and/or amounts of expected cash flows on such loans are not reasonably estimable, no interest is accreted and the loan is reported as a non-accrual loan; otherwise, if the timing and amounts of expected cash flows for PCI loans are reasonably estimable, then interest is accreted and the loans are reported as accruing loans. | |||||||||||||||||||||||||||||
The non-accretable difference represents the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows, and also reflects the estimated credit losses in the acquired loan portfolio at the acquisition date and can fluctuate due to changes in expected cash flows during the life of the PCI loans. | |||||||||||||||||||||||||||||
The following table presents the fair value of loans pursuant to accounting standards for PCI and other purchased loans as of the PC Bancorp acquisition date (dollars in thousands): | |||||||||||||||||||||||||||||
July 31, 2012 | |||||||||||||||||||||||||||||
Purchased | Other | Total | |||||||||||||||||||||||||||
credit | purchased | ||||||||||||||||||||||||||||
impaired | loans | ||||||||||||||||||||||||||||
loans | |||||||||||||||||||||||||||||
Contractually required payments | $ | 9,010 | $ | 283,518 | $ | 292,528 | |||||||||||||||||||||||
Less: non-accretable difference | (2,219 | ) | 0 | (2,219 | ) | ||||||||||||||||||||||||
Cash flows expected to be collected (undiscounted) | 6,791 | 283,518 | 290,309 | ||||||||||||||||||||||||||
Accretable yield | 0 | (12,315 | ) | (12,315 | ) | ||||||||||||||||||||||||
Fair value of purchased loans | $ | 6,791 | $ | 271,203 | $ | 277,994 | |||||||||||||||||||||||
The following table reflects the outstanding balance and related carrying value of PCI loans as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Unpaid | Carrying | Unpaid | Carrying | ||||||||||||||||||||||||||
Principal | Value | Principal | Value | ||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||
Commercial and Industrial | $ | 1,599 | $ | 1,046 | $ | 1,221 | $ | 770 | |||||||||||||||||||||
Commercial and Other Real Estate | 5,611 | 3,282 | 9,424 | 6,130 | |||||||||||||||||||||||||
Other | 0 | 0 | 73 | 4 | |||||||||||||||||||||||||
Total | $ | 7,210 | $ | 4,328 | $ | 10,718 | $ | 6,904 | |||||||||||||||||||||
The following table reflects the activities in the accretable net discount for PCI loans for the period indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Balance, beginning of year | $ | 9 | $ | 0 | |||||||||||||||||||||||||
Accretion, included in interest income | (33 | ) | 0 | ||||||||||||||||||||||||||
Reclassifications from non-accretable yield | 419 | 9 | |||||||||||||||||||||||||||
Balance, end of year | $ | 395 | $ | 9 | |||||||||||||||||||||||||
Premises_and_Equipment_and_Lea
Premises and Equipment and Lease Commitments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Premises and Equipment and Lease Commitments | ' | ||||||||
Note 7—Premises and Equipment and Lease Commitments | |||||||||
Premises and equipment are stated at cost less accumulated depreciation and amortization. The following major classifications of premises and equipment are summarized as follows as of the dates indicated (dollars in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Furniture and equipment | $ | 5,252 | $ | 6,989 | |||||
Leasehold improvements | 6,730 | 4,747 | |||||||
Total | 11,982 | 11,736 | |||||||
Less: Accumulated depreciation and amortization | (8,451 | ) | (8,314 | ) | |||||
Total | $ | 3,531 | $ | 3,422 | |||||
Total depreciation expense for the years ended December 31, 2013, 2012, and 2011 was $1,082,000, $1,022,000, and $1,006,000, respectively. | |||||||||
The following is a schedule of future minimum lease payments for operating leases for office and branch space based upon obligations at December 31, 2013 (dollars in thousands): | |||||||||
Year | Amount | ||||||||
2014 | $ | 2,041 | |||||||
2015 | 2,200 | ||||||||
2016 | 2,058 | ||||||||
2017 | 1,981 | ||||||||
2018 | 1,131 | ||||||||
Thereafter | 3,595 | ||||||||
Total | $ | 13,006 | |||||||
Total rental expense on facilities for the years ended December 31, 2013, 2012 and 2011 was $2,197,000, $1,764,000, and $1,445,000, respectively. |
Goodwill_Core_Deposit_and_Leas
Goodwill, Core Deposit and Leasehold Right Intangibles | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill, Core Deposit and Leasehold Right Intangibles | ' | ||||||||||||
Note 8 – Goodwill, Core Deposit and Leasehold Right Intangibles | |||||||||||||
Goodwill | |||||||||||||
At December 31, 2013 and 2012, the Company has $12.3 million of Goodwill, $6.1 million of which was recorded in 2012 related to the acquisition of PC Bancorp. See Note 2 – Business Combinations. | |||||||||||||
The Company’s Goodwill was evaluated for impairment during the fourth quarter of 2013, with no impairment loss recognition considered necessary. | |||||||||||||
Core Deposit Intangibles (“CDI”) | |||||||||||||
The weighted average amortization period remaining for our core deposit intangibles is 7.0 years. The estimated aggregate amortization expense related to these intangible assets for each of the next five years is $266,000, $246,000, $234,000, $227,000, and $220,000. The Company’s core deposit intangibles were evaluated for impairment at December 31, 2013, taking into consideration the actual deposit runoff of acquired deposits to the level of deposit runoff expected at the date of merger. Based on the Company’s evaluation, no impairment has taken place on the core deposit intangibles. The following table presents the changes in the gross amounts of core deposit intangibles and the related accumulated amortization for the dates and periods indicated (dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Gross amount of CDI: | |||||||||||||
Balance, beginning of year | $ | 2,103 | $ | 1,098 | $ | 1,098 | |||||||
Additions due to acquisitions | 0 | 1,005 | 0 | ||||||||||
Balance, end of year | 2,103 | 2,103 | 1,098 | ||||||||||
Accumulated Amortization: | |||||||||||||
Balance, beginning of year | (356 | ) | (137 | ) | (0 | ) | |||||||
Amortization | (309 | ) | (219 | ) | (137 | ) | |||||||
Balance, end of year | (665 | ) | (356 | ) | (137 | ) | |||||||
Net CDI, end of year | $ | 1,438 | $ | 1,747 | $ | 961 | |||||||
Leasehold Right Intangibles | |||||||||||||
The leasehold right intangibles represent the difference between the fair value of the Company’s Thousand Oaks Branch lease and the contractual lease payments over the term of the lease. This leasehold intangible was created at the time of the COSB merger and was classified in the Company’s balance sheet as an other liability. This amount was reclassified to the Company’s intangible assets during 2013. The recorded value of the Company’s leasehold right intangibles at December 31, 2013 was $1.1 million. | |||||||||||||
The amortization of the leasehold right intangibles is recorded within the income statement under occupancy. The net amortization of the leasehold right intangible assets and liabilities resulted in income of $313,000 and $315,000 for the years ended December 31, 2013 and 2012, respectively. |
Bank_Owned_Life_Insurance
Bank Owned Life Insurance | 12 Months Ended |
Dec. 31, 2013 | |
Investments All Other Investments [Abstract] | ' |
Bank Owned Life Insurance | ' |
Note 9—Bank Owned Life Insurance | |
At December 31, 2013 and 2012 the Company had $21.2 million and $20.6 million, respectively of Bank-Owned Life Insurance (“BOLI”). The Company recorded non-interest income associated with the BOLI policies of $617,000, $267,000, and $105,000, for the years ending December 31, 2013, 2012 and 2011, respectively. The increase in the Company’s balance in 2013 by $617,000 to $21.2 million was from the increase in the cash surrender value of the policies during 2013. The increase in the Company’s balance in 2012 of $17.9 million was the result of $14.0 million in new BOLI insurance premiums paid on new policies, $3.7 million acquired from the acquisition of PC Bancorp, and $267,000 from the increase in the cash surrender value of the policies during 2012. | |
BOLI involves the purchasing of life insurance by the Company on a selected group of employees where the Company is the owner and beneficiary of the policies. BOLI is recorded as an asset at its cash surrender value. Increases in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income and are not subject to income tax, as long as they are held for the life of the covered parties. At December 31, 2013 the $21.2 million was allocated between five individual insurance companies, with balances ranging from approximately 40.3% to 1.5% of the Company’s outstanding BOLI balances. On an annual basis, the Company reviews the financial stability and ratings of all the individual insurance companies to ensure they are adequately capitalized, and that there is minimal risk to the BOLI assets. |
Investment_in_California_Organ
Investment in California Organized Investment Network "COIN" | 12 Months Ended |
Dec. 31, 2013 | |
Investments Schedule [Abstract] | ' |
Investment in California Organized Investment Network "COIN" | ' |
Note 10 – Investment in California Organized Investment Network “COIN” | |
During 2013, the Company made investments of $1.1 million in 60 month term, 0% interest rate deposits. The Company made a $1.0 million investment with Rural Community Assistance Corporation (“RCAC”), that generated a $200,000 tax credit, and a $75,000 investment with Pacific Coast Regional Small Business Development Corporation (“PCR”) that generated a $15,000 tax credit. These investments qualified the Company for a $215,000 Qualified Investment Tax Credit that was applied to the Company’s 2013 tax provision. During 2009, the Company made an investment in a $1.0 million, 60 month term, 0% interest rate deposit with Clearinghouse CDFI (“Clearinghouse”) that qualified the Company for a $200,000 Qualified Investment Tax Credit. Both investments made in 2013 and the one investment made in 2009 qualified as Community Redevelopment Act (“CRA”) investments under CRA investment guidelines. | |
All three entities, the RCAC, the PCR and the Clearinghouse are certified Community Development Financial Institutions (“CDFI”) as defined and recognized by the United States Department of Treasury and are defined and recognized by the California Organized Investment Network (COIN) within the California Department of Insurance. | |
Based on these investments being certified by the California Department of Insurance, the investments made in 2013 qualified for a 20% or $215,000 State of California income tax credit in the year made. If the Company were to redeem this deposit prior to its contractual and stated maturity date, the Company would lose the benefit of the tax credit taken in prior years. The investment, to qualify for this specific tax credit, must be for a minimum term of sixty months. In addition, the tax credit is required to be applied during the year in which the investments were made. The deposit made in 2013 matures in 2018, while the deposit made in 2009 matures in 2014. These deposits are not insured by the FDIC, and are included in other assets on the balance sheet of the Company. The Company’s intentions are to hold these investments to their contractual maturity dates. These investments were also made to meet CRA investment goals. |
Qualified_Affordable_Housing_P
Qualified Affordable Housing Project Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | ' | ||||||||||||||||||||||||
Qualified Affordable Housing Project Investments | ' | ||||||||||||||||||||||||
Note 11 – Qualified Affordable Housing Project Investments | |||||||||||||||||||||||||
The Company’s investment in Qualified Affordable Housing Projects that generate Low Income Housing Tax Credits (“LIHTC”) at December 31, 2013 was $4.5 million with a recorded liability of $4.0 million in funding obligations. The Company has invested in three separate LIHTC projects which provide the Company with CRA credit. Additionally, the investment in LIHTC projects provides the Company with tax credits and with operating loss tax benefits over an approximately 10 year period. None of the original investment will be repaid. The tax credits and the operating loss tax benefits that are generated by each of the properties are expected to exceed the total value of the investment made by the Company and provide a return on the investment between 5.0% to 6.0%. The investment in LIHTC projects is being accounted for using the proportional amortization method, under which the Company amortizes the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). | |||||||||||||||||||||||||
See Note 1 – Summary of Significant Accounting Policies, “Qualified Affordable Housing Project Investments” and “Recent Accounting Pronouncements” for a discussion of the adoption of ASU 2014-01 regarding how the Company accounts for its investments in LIHTC projects. | |||||||||||||||||||||||||
The following table presents the Company’s original investment in the LIHTC projects, the current recorded investment balance, and the unfunded liability balance of each investment at December 31, 2013. In addition, the table reflects the tax credits and tax benefits recorded by the Company during 2013, the amortization of the investment and the net impact to the Company’s income tax provision for 2013. Also see Note 19 – Income Tax, for the impact of these investments had on the Company’s effective tax rate (dollars in thousands): | |||||||||||||||||||||||||
Qualified Affordable Housing Projects at | Original | Current | Unfunded | Tax Credits | Amortization of | Net Income | |||||||||||||||||||
December 31, 2013 | Investment | Recorded | Liability | and Benefits (1) | Investments (2) | Tax Benefit | |||||||||||||||||||
Value | Investment | Obligation | |||||||||||||||||||||||
Enterprise Green Communities West II LP | $ | 1,000 | $ | 787 | $ | 190 | $ | 236 | $ | 160 | $ | 76 | |||||||||||||
Enterprise Housing Partners Calgreen II Fund LP | 2,050 | 1,735 | 1,817 | 390 | 314 | 76 | |||||||||||||||||||
Enterprise Housing Partners XXIV LP | 2,000 | 1,988 | 1,983 | 14 | 11 | 3 | |||||||||||||||||||
Total – Investments in Qualified Affordable Housing Projects | $ | 5,050 | $ | 4,510 | $ | 3,990 | $ | 640 | $ | 485 | $ | 155 | |||||||||||||
-1 | The amounts reflected in this column represent both the tax credits, as well as the tax benefits generated by the Qualified Affordable Housing Projects operating loss for the year. | ||||||||||||||||||||||||
-2 | This amount reduces the tax credits and benefits generated by the Qualified Affordable Housing Projects. | ||||||||||||||||||||||||
The Company’s investments in affordable housing projects generated tax credits recorded by the Company in 2013 of $541,000 and additional tax benefits from the operating losses generated by the projects of $99,000. These tax credits and benefits which totaled $640,000 were partially offset by the amortization of the principal investment balances of $485,000. The net income tax benefit included in the Company’s income tax provision was $155,000 in 2013. At December 31, 2013, the Company has a funding commitment of $4.0 million that is expected to be funded over the next several years. The following table reflects the anticipated net income tax benefit that is expected to be recognized by the Company over the next several years (dollars in thousands): | |||||||||||||||||||||||||
Qualified Affordable Housing Projects | Enterprise | Enterprise | Enterprise | Total | |||||||||||||||||||||
Green | Housing | Housing | Net Income Tax | ||||||||||||||||||||||
Communities | Partners | Partners XXIV | Benefit | ||||||||||||||||||||||
West II LP | Calgreen II | LP | |||||||||||||||||||||||
Fund LP | |||||||||||||||||||||||||
Anticipated net income tax benefit less amortization of investments: | |||||||||||||||||||||||||
2014 | $ | 43 | $ | 46 | $ | 52 | $ | 141 | |||||||||||||||||
2015 | 43 | 40 | 52 | 135 | |||||||||||||||||||||
2016 and thereafter | 279 | 332 | 468 | 1,079 | |||||||||||||||||||||
Total – anticipated net income tax benefit in Qualified Affordable Housing Projects | $ | 365 | $ | 418 | $ | 572 | $ | 1,355 | |||||||||||||||||
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Deposits | ' |
Note 12 – Deposits | |
At December 31, 2013, 54 customers maintained balances (aggregating all related accounts, including multiple business entities and personal funds of business principals) in excess of $4 million. The aggregate amount of such deposits amounted to $632.8 million or approximately 51% of the Company’s total customer deposit base. The depositors are not concentrated in any industry or business. At December 31, 2013 and 2012, the Company had “reciprocal” CDARS® and ICS® deposits that are classified as “brokered” deposits in regulatory reports. These “reciprocal” CDARS® and ICS® deposits are the only brokered deposits utilized by the Company, and the Company considers these deposits to be “core” in nature. | |
At December 31, 2013, $61.2 million out of total time deposits of $63.6 million mature within one year. | |
As of December 31, 2013 and 2012, the Company had certificates of deposit with balances $100,000 or more of $59.0 and $76.4 million, respectively. | |
ICS® Reciprocal Non-Interest Bearing Demand Deposits | |
During 2013 the Company began participating as a member of the Insured Cash Sweep® (“ICS®”) deposit program. Through ICS®, the Company may accept non-interest bearing deposits in excess of the FDIC insured maximum from a depositor and place the deposits through the ICS® network into other member banks in increments of less than the FDIC insured maximum in order to provide the depositor full FDIC insurance coverage. The Company receives an equal dollar amount of deposits from other ICS® member banks in exchange for the deposits the Company places into the ICS® network. These deposits are recorded on the Company’s balance sheet as ICS® reciprocal deposits. At December 31, 2013, the ICS® reciprocal deposits totaled $4.5 million. | |
CDARS® Reciprocal Time Deposits | |
The Company participates and is a member of the Certificate of Deposit Account Registry Service (CDARS®) deposit product program. Through CDARS®, the Company may accept deposits in excess of the FDIC insured maximum from a depositor and place the deposits through a network to other CDARS® member banks in increments of less than the FDIC insured maximum to provide the depositor full FDIC insurance coverage. Where the Company receives an equal dollar amount of deposits from other CDARS® member banks in exchange for the deposits the Company places into the network, the Company records these as CDARS® reciprocal deposits. At December 31, 2013 and 2012, CDARS® reciprocal deposits totaled $28.9 million and $14.0 million, respectively. |
Borrowings_and_Subordinated_De
Borrowings and Subordinated Debentures | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Brokers And Dealers [Abstract] | ' | ||||||||||||||||||||||||
Borrowings and Subordinated Debentures | ' | ||||||||||||||||||||||||
Note 13 – Borrowings and Subordinated Debentures | |||||||||||||||||||||||||
Securities Sold Under Agreements to Repurchase | |||||||||||||||||||||||||
The Company enters into certain transactions, the legal form of which are sales of securities under agreements to repurchase (“Repos”) at a later date at a set price. Securities sold under agreements to repurchase generally mature within one day to 180 days from the issue date and are routinely renewed. | |||||||||||||||||||||||||
As discussed in Note 5 – Investment Securities, the Company has pledged certain investments as collateral for these agreements. Securities with a fair market value of $11.8 million and $23.3 million were pledged to secure the Repos at December 31, 2013 and December 31, 2012, respectively. The Company segregates both the principal and accrued interest on these securities with the Company’s third party safekeeping custodians. All principal and interest payments on the investment securities that are pledged as collateral on the Repo program are received directly by the safekeeping custodian. | |||||||||||||||||||||||||
The tables below describe the terms and maturity of the Company’s securities sold under agreements to repurchase as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Date Issued | Amount | Interest Rate | Original | Maturity Date | |||||||||||||||||||||
Term | |||||||||||||||||||||||||
3-Dec-13 | $ | 750 | 0.10% | 62 days | February 3, 2014 | ||||||||||||||||||||
31-Dec-13 | 10,391 | 0.10% – 0.40% | 2 days | 2-Jan-14 | |||||||||||||||||||||
Total | $ | 11,141 | 0.30% | ||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Date Issued | Amount | Interest Rate | Original | Maturity Date | |||||||||||||||||||||
Term | |||||||||||||||||||||||||
5-Nov-12 | $ | 1,020 | 0.15% | 91 days | February 4, 2013 | ||||||||||||||||||||
31-Dec-12 | 21,837 | 0.10% – 0.40% | 1 day | 2-Jan-13 | |||||||||||||||||||||
Total | $ | 22,857 | 0.29% | ||||||||||||||||||||||
Federal Home Loan Bank Borrowings | |||||||||||||||||||||||||
The Company maintains a secured credit facility with the Federal Home Loan Bank of San Francisco “FHLB”, allowing the Company to borrow on an overnight and term basis. The Company’s credit facility with the FHLB is $336.0 million, which represents approximately 25% of the Bank’s total assets, as reported by the Bank in its December 31, 2013 FFIEC Call Report. | |||||||||||||||||||||||||
As of December 31, 2013, the Company had $841 million of loan collateral pledged with the FHLB which provides $292 million in borrowing capacity. The Company has no investment securities pledged with the FHLB to support this credit facility. In addition, the Company must maintain an investment in the Capital Stock of the FHLB. The Company is required to purchase FHLB common stock to support its FHLB advances. Under the FHLB Act, the FHLB has a statutory lien on the FHLB capital stock that the Company owns and the FHLB capital stock serves as further collateral under the borrowing line. | |||||||||||||||||||||||||
The Company had no outstanding advances (borrowings) with the FHLB as of December 31, 2013 or 2012. | |||||||||||||||||||||||||
Interest on FHLB advances is generally paid monthly, quarterly or semi-annually depending on the terms of the advance, with principal and any accrued interest due at maturity. The Company had no FHLB borrowings during 2013 or 2012, except for the annual testing of the borrowing lines. The Company is required to purchase FHLB common stock to support its FHLB advances. At December 31, 2013 and 2012, the Company had $4.7 million and $4.9 million of FHLB common stock, respectively. The current value of the FHLB common stock of $4.7 million would support FHLB advances up to $101.0 million. Any advances from the FHLB in excess of $101.0 million would require additional purchases of FHLB common stock. | |||||||||||||||||||||||||
The FHLB has historically repurchased a portion to all of its excess capital from each bank where the level of capital is in excess of that bank’s current average borrowings above a certain minimum. The FHLB’s program whereby the FHLB analyzes each member bank’s capital requirement and returns each bank’s excess capital above a certain minimum not needed for current borrowings resulted in the repurchase of the Company’s FHLB common stock during 2013 and 2012 by the FHLB. The FHLB repurchased $150,300, and $187,200 of the Company’s investment in FHLB capital stock during 2013 and 2012, respectively. The Company acquired $1.9 million of FHLB capital stock in 2012 from the acquisition of Premier Commercial Bank. | |||||||||||||||||||||||||
The FHLB has paid or declared dividends on its capital stock for all four quarters of the years ending December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
Subordinated Debentures | |||||||||||||||||||||||||
The following table summarizes the terms of each issuance of subordinated debentures outstanding as of December 31, 2013: | |||||||||||||||||||||||||
Series | Amount | Issuance | Maturity | Rate Index | Current | Next Reset | |||||||||||||||||||
(in thousands) | Date | Date | Rate | Date | |||||||||||||||||||||
Trust I | $ | 6,186 | 12/10/04 | 3/15/35 | 3 month LIBOR+2.05% | 2.293 | % | 3/17/14 | |||||||||||||||||
Trust II | 3,093 | 12/23/05 | 3/15/36 | 3 month LIBOR+1.75% | 1.993 | % | 3/17/14 | ||||||||||||||||||
Trust III | 3,093 | 6/30/06 | 9/15/36 | 3 month LIBOR+1.85% | 2.093 | % | 3/17/14 | ||||||||||||||||||
Subtotal | 12,372 | ||||||||||||||||||||||||
Unamortized fair value adjustment | (2,993 | ) | |||||||||||||||||||||||
Net | $ | 9,379 | |||||||||||||||||||||||
The Company had an aggregate outstanding contractual balance of $12.4 million in subordinated debentures at December 31, 2013. These subordinated debentures were acquired as part of the PC Bancorp merger and were issued to trusts originally established by PC Bancorp, which in turn issued trust preferred securities. These subordinated debentures were issued in three separate series. Each issuance had a maturity of 30 years from their approximate date of issue. All three subordinated debentures are variable rate instruments that reprice quarterly based on the three month LIBOR plus a margin (see tables above). All three subordinated debentures had their interest rates reset in December 2013 at the current three month LIBOR plus their index, and will continue to reprice quarterly through their maturity date. All three subordinated debentures are currently callable at par with no prepayment penalties. | |||||||||||||||||||||||||
The original fair value adjustment related to the subordinated debentures was $3.3 million. The Company recorded $209,700 and $94,400 in amortization expense related to the fair value adjustment in 2013 and 2012, respectively. At December 31, 2013 the Company is estimating a remaining life of approximately 22 years on the subordinated debentures and is amortizing the fair value adjustment based on this estimated average remaining life. The Company is projecting annual amortization expense of approximately $159,000 related to the fair value adjustment on the subordinated debentures. | |||||||||||||||||||||||||
The Company currently includes in Tier 1 capital an amount of subordinated debentures equal to no more than 25% of the sum of all core capital elements, which is generally defined as shareholders’ equity less goodwill, core deposit and leasehold right intangibles and a portion of the SBA servicing assets. See Note 23 – Regulatory Matters. | |||||||||||||||||||||||||
Interest payments made by the Company on subordinated debentures are considered dividend payments under FRB regulations. Notification to the FRB is required prior to the Company declaring and paying a dividend during any period in which the Company’s quarterly net earnings are insufficient to fund the dividend amount. This notification requirement is included in regulatory guidance regarding safety and soundness surrounding capital and includes other non-financial measures such as asset quality, financial condition, capital adequacy, liquidity, future earnings projections, capital planning and credit concentrations. Should the FRB object to the dividend payments, the Company would be precluded from paying interest on the subordinated debentures after giving notice within 15 days before the payment date. Payments would not commence until approval is received or the Company no longer needs to provide notice under applicable guidance. The Company has the right, assuming no default has occurred, to defer payments of interest on the subordinated debentures at any time for a period not to exceed 20 consecutive quarters. The Company has not deferred any interest payments. | |||||||||||||||||||||||||
Short-term Borrowings | |||||||||||||||||||||||||
Details regarding the Company’s short-term borrowings for the dates and periods indicated are reflected in the table below (dollars in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Balance | Average | Weighted | Balance | Average | Weighted | ||||||||||||||||||||
Balance | Average | Balance | Average | ||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | $ | 11,141 | $ | 24,376 | 0.3 | % | $ | 22,857 | $ | 26,027 | 0.35 | % | |||||||||||||
The maximum amount of short-term borrowings outstanding at any month-end was $30.0 million and $32.5 million in 2013 and 2012, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||
Derivative Financial Instruments | ' | ||||||||
Note 14 – Derivative Financial Instruments | |||||||||
At December 31, 2013, the Company has twenty three pay-fixed, receive-variable, interest rate contracts that are designed to convert fixed rate loans into variable rate loans. The Company acquired these interest rate swap contracts “swaps” on July 31, 2012 as a result of the merger with PC Bancorp. None of the original twenty four swap contracts acquired in the PC Bancorp acquisition were designated as accounting hedges from the acquisition date through September 30, 2012. Twenty one of the original interest rate swap contracts were re-designated as accounting hedges effective October 1, 2012. | |||||||||
The Company also acquired as part of the PC Bancorp acquisition, a pay-fixed, receive-variable, interest rate swap contract that was originally utilized to convert a fixed rate borrowing on a subordinated debenture to a variable rate borrowing. The fixed rate subordinated debenture converted to a variable rate borrowing in December of 2012 and the swap matured in 2013. | |||||||||
Prior to the merger with PC Bancorp, the Company did not utilize interest rate swaps to manage its interest rate risk position. The Company has incorporated these instruments into its asset liability program when monitoring its interest rate risk position. All of the interest rate swap contracts are with the same counterparty bank. The total notional amount of the outstanding swap contracts as of December 31, 2013 is $31.9 million. The outstanding swaps have original maturities of up to 15 years. | |||||||||
Balance Sheet Classification of Derivative Financial Instruments | |||||||||
The following tables present the notional amount and the fair values of the asset and liability of the Company’s derivative instruments as of the dates and periods indicated (dollars in thousands): | |||||||||
Liability Derivatives | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Fair Value Hedges | |||||||||
Total interest rate contacts notional amount | $ | 31,914 | $ | 35,990 | |||||
Derivatives not designated as hedging instruments: | |||||||||
Interest rate swap contracts fair value | $ | 738 | $ | 1,114 | |||||
Derivatives designated as hedging instruments: | |||||||||
Interest rate swap contracts fair value | 3,205 | 4,924 | |||||||
Total interest rate contracts fair value | $ | 3,943 | $ | 6,038 | |||||
Balance sheet location | Accrued Interest | Accrued Interest | |||||||
Payable and | Payable and | ||||||||
Other Liabilities | Other Liabilities | ||||||||
The Effect of Derivative Instruments on the Consolidated Statements of Income | |||||||||
The following table summarizes the effect of derivative financial instruments on the consolidated statements of income for the periods indicated (dollars in thousands): | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Interest rate swap contracts – loans | |||||||||
Increase in fair value of interest rate swap contracts | $ | 306 | $ | 666 | |||||
Payments on interest rate swap contracts on loans | (289 | ) | (329 | ) | |||||
Net increase in other non-interest income | 17 | 337 | |||||||
Interest rate swap contracts – subordinated debenture | |||||||||
Increase in fair value of interest rate swap contracts | 70 | 65 | |||||||
Payments on interest rate swap contracts on subordinated debentures | (70 | ) | (62 | ) | |||||
Net increase in other non-interest income | 0 | 3 | |||||||
Net increase in other non-interest income | $ | 17 | $ | 340 | |||||
Derivatives designated as hedging instruments: | |||||||||
Interest rate swap contracts – loans | |||||||||
Increase (decrease) in fair value of interest rate swap contracts | $ | 1,719 | $ | (59 | ) | ||||
(Decrease) in fair value of hedged loans | (554 | ) | (73 | ) | |||||
Payments on interest rate swap contracts on loans | (1,294 | ) | (333 | ) | |||||
Net (decrease) in interest income on loans | $ | (129 | ) | $ | (465 | ) | |||
The amount of interest paid out and the changes in the fair value of the interest rate swap agreements represents 12 months of activity for 2013 and five months of activity for 2012, in the above table. | |||||||||
The total amount of interest paid on all interest rate swap contracts by the Company for the twelve months of 2013 and the five months of 2012 was $1.65 million and $724, 000, respectively. The total change in the fair value of the interest rate swap contracts for 2013 was a decrease in the fair value liability balance by $2.1 million. The decline in the fair value of the interest rate swap contracts, (the recorded liability balance) for the twelve months ended December 31, 2013, was the result of the decrease in the estimated net future cash flow payments expected to be made by the Company through the maturity date of the swap contracts. The decline in the estimated net cash flow payments was the result of a twelve month decline in the remaining maturity on the swaps, and an increase in the LIBOR futures swap rates used in the cash flow calculations. Since the Company receives variable rate payments on the swap contracts, increases in the LIBOR futures swap rates reduces the net cash flow payments and liability balance of the swap contracts. | |||||||||
The interest rate swap contract originally associated with the subordinated debenture that was scheduled to mature in June 2013 was liquidated prior to maturity during the first quarter of 2013. The final payment associated with the liquidation of this swap agreement was completely offset by the liquidation of the fair value liability associated with the interest rate swap contract, resulting in no impact to non-interest income during 2013. | |||||||||
Under the interest rate swap contracts, the Company is required to pledge and maintain collateral for the credit support under these agreements. At December 31, 2013, the Company had $4.2 million in certificates of deposit and $1.7 million in non-interest bearing balances for a total of $6.0 million with the counterparty, Pacific Coast Bankers Bank. Of this amount, $4.3 million is pledged as collateral. |
Balance_Sheet_Offsetting
Balance Sheet Offsetting | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Balance Sheet Offsetting | ' | ||||||||||||||||||||||||
Note 15 – Balance Sheet Offsetting | |||||||||||||||||||||||||
Assets and liabilities relating to certain financial instruments, including derivatives, and securities sold under repurchase agreements (“Repos”), may be eligible for offset in the consolidated balance sheets as permitted under accounting guidance. The Company’s interest rate swap derivatives are subject to a master bilateral netting and offsetting arrangement under specific conditions as defined within a master agreement governing all interest rate swap contracts that the Company and the counterparty bank have entered into. In addition, the master agreement under which the interest rate contracts have been written require the pledging of assets by the Company based on certain risk thresholds. The Company has pledged as collateral, both a certificate of deposit and cash that is maintained in a due from bank account with the counterparty bank. The pledged collateral under the swap agreements are reported in the Company’s consolidated balance sheets, unless the Company defaults under the master agreement. The Company currently does not net or offset the interest rate swap contracts in its consolidated balance sheets, as reflected within the table below. | |||||||||||||||||||||||||
The Company’s securities sold under repurchase agreements represent transactions the Company has entered into with several individual deposit customers. These transactions represent the sale of securities on an overnight or on a term basis to our deposit customers under an agreement to repurchase the securities from the customers the next business day or at maturity. There is an individual contract for each customer with only one transaction per customer. There is no master agreement that provides for the netting arrangement or the offsetting of these individual transactions or for the netting of collateral positions. The Company does not net or offset the Repos in its consolidated balance sheets as reflected within the table below. | |||||||||||||||||||||||||
The table below presents the Company’s financial instruments that may be eligible for offsetting which include securities sold under agreements to repurchase that have no enforceable master netting arrangement and derivative securities that could be offset in the consolidated financial statements due to an enforceable master netting arrangement (dollars in thousands): | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Gross Amounts | Net Amount | |||||||||||||||||||||
Amounts | Amounts | of Assets | Not Offset in the | (Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented | Consolidated Balance Sheets | over liability | |||||||||||||||||||||
in the | Consolidated | in the | balance | ||||||||||||||||||||||
Consolidated | Balance | Consolidated | required to | ||||||||||||||||||||||
Balance | Sheets | Balance | be pledged) | ||||||||||||||||||||||
Sheets | Sheets | Financial | Collateral | ||||||||||||||||||||||
Instruments | Pledged | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||
Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) | $ | 3,943 | $ | 0 | $ | 3,943 | $ | 3,943 | $ | 4,194 | $ | 251 | |||||||||||||
Securities sold under agreements to repurchase | 11,141 | 0 | 11,141 | 11,141 | 11,750 | 609 | |||||||||||||||||||
Total | $ | 15,084 | $ | 0 | $ | 15,084 | $ | 15,084 | $ | 15,944 | $ | 860 | |||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||
Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) | $ | 6,038 | $ | 0 | $ | 6,038 | $ | 6,038 | $ | 6,406 | $ | 368 | |||||||||||||
Securities sold under agreements to repurchase | 22,857 | 0 | 22,857 | 22,857 | 23,300 | 443 | |||||||||||||||||||
Total | $ | 28,895 | $ | 0 | $ | 28,895 | $ | 28,895 | $ | 29,706 | $ | 811 | |||||||||||||
Stock_Options_and_Restricted_S
Stock Options and Restricted Stock | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock Options and Restricted Stock | ' | ||||||||||||||||
Note 16 – Stock Options and Restricted Stock | |||||||||||||||||
Equity Compensation Plans | |||||||||||||||||
The Company’s 2007 Equity and Incentive Plan, “Equity Plan,” was adopted by the Company in 2007 and replaced two prior equity compensation plans. The Equity Plan provides for significant flexibility in determining the types and terms of awards that may be made to participants. The Equity Plan was revised and approved by the Company’s shareholders in 2011 and adopted by the Company as part of the Bank holding company reorganization. This plan is designed to promote the interest of the Company in aiding the Company to attract and retain employees, officers and non-employee directors who are expected to contribute to the future success of the organization. The Equity Plan is intended to provide participants with incentives to maximize their efforts on behalf of the Company through stock-based awards that provide an opportunity for stock ownership. This plan provides the Company with a flexible equity incentive compensation program, which allows the Company to grant stock options, restricted stock, restricted stock award units and performance units. Certain options and share awards provide for accelerated vesting, if there is a change in control, as defined in the Equity Plan. | |||||||||||||||||
Upon the adoption of the Equity Plan, the Company concurrently terminated both its earlier 2005 equity compensation plans. All the remaining unissued shares of common stock under both 2005 equity compensation plans were rolled into the 2007 Equity and Incentive Plan. No further shares were issued under these older plans. All option shares issued under the existing plans remain in force until the shares are either exercised, expire or are cancelled. | |||||||||||||||||
A total of 490,547 shares were originally authorized and reserved for issuance under the Equity Plan. During 2011, based on the approved revisions to the Equity Plan, an additional 1,000,000 shares were authorized for issuance, which resulted in 1,490,547 of authorized shares available for issuance under the plan. | |||||||||||||||||
Under the Equity Plan at December 31, 2013, there are a total of 1,490,547 shares authorized. A total of 682,183 shares have been issued out of the plan, with 53,350 of these issued shares subsequently cancelled and returned back into the plan, leaving 861,714 available to be issued. | |||||||||||||||||
All non-qualified and incentive stock options granted under the current Equity Plan and the earlier 2005 equity compensation plans, have been issued with the exercise prices of the stock options equal to the fair market value of the underlying shares at the date of grant. | |||||||||||||||||
The Equity Plan and the original 2005 equity compensation plans provided for the issuance of non-qualified and incentive stock options. These plans provided that each option must have an exercise price not less than the fair market value of the stock at the date of grant and terms to expiration not to exceed ten years. All options granted under the plans require continuous service and have been issued with vesting increments of between 20% through 50% per year. All stock options issued under the original 2005 equity compensation plans that have not expired remain outstanding with no changes in their vesting, maturity date or rights. | |||||||||||||||||
During 2013, the Company had a combined federal and state tax benefit of $659,000, related to the vesting of restricted stock and the exercise of stock options during 2013, of which $96,000 was related to restricted stock and $563,000 was related to stock options. This tax benefit was recorded to additional paid in capital “APIC” during the year ending December 31, 2013. | |||||||||||||||||
During 2012, the Company had a combined federal and state tax deficiency of $57,000, related to the vesting of restricted stock during 2012, of which $53,000 was recorded as additional tax expense and $4,000 was recorded to additional paid in capital “APIC”. There were no tax benefits or deficiencies related to the exercise or cancellation of stock options during 2012. | |||||||||||||||||
During 2011, the Company had combined federal and state excess tax benefit of $4,000 that was recorded to additional paid in capital “APIC” during 2011. This included excess tax benefits resulting from the exercise of non-qualified stock options, associated with the Company’s outside directors of approximately $38,900. In addition, the Company had additional tax benefits of approximately $12,300 associated with the vesting of restricted stock. The Company had a tax deficiency of $45,900 resulting primarily from the cancellation of non-qualified director stock options that went unexercised from a Company’s director who terminated his directorship during 2011. | |||||||||||||||||
At December 31, 2013, future compensation expense related to non-vested stock option and restricted stock grants aggregated to the amounts reflected in the table below (dollars in thousands): | |||||||||||||||||
Future Stock Based Compensation Expense | Stock | Restricted | Total | ||||||||||||||
Options | Stock | ||||||||||||||||
2014 | $ | 10 | $ | 1,191 | $ | 1,201 | |||||||||||
2015 | 2 | 456 | 458 | ||||||||||||||
2016 | 0 | 131 | 131 | ||||||||||||||
2017 | 0 | 18 | 18 | ||||||||||||||
Thereafter | 0 | 3 | 3 | ||||||||||||||
Total | $ | 12 | $ | 1,799 | $ | 1,811 | |||||||||||
The estimated fair value of both incentive stock options and non-qualified stock options granted in prior years, have been calculated using the Black-Scholes option pricing model. There have been no incentive stock options and no non-qualified stock options issued in 2011, 2012 or 2013. The following is the listing of the input variables and the assumptions utilized by the Company for each parameter used in the Black-Scholes option pricing model in prior years: | |||||||||||||||||
Risk-free Rate – The risk-free rate for periods within the contractual life of the option have been based on the U.S. Treasury rate that matures on the expected assigned life of the option at the date of the grant. | |||||||||||||||||
Expected Life of Options – The expected life of options have either been calculated using a formula from the Securities and Exchange Commission “SEC” for companies that do not have sufficient historical data to calculate the expected life, or from the estimated life of options granted by the Company. The formula from the SEC calculation of expected life is specifically based on the following: the expected life of the option is equal to the average of the contractual life and the vesting period of each option. | |||||||||||||||||
Expected Volatility –Beginning in 2009, the expected volatility has been based on the historical volatility for the Company’s shares. | |||||||||||||||||
Dividend Yield – The dividend yield has been based on historical experience and expected future changes on dividend payouts. The Company has not declared or paid dividends in the past and does not expect to declare or pay dividends on its common stock within the foreseeable future. | |||||||||||||||||
Stock Options | |||||||||||||||||
There were no stock options granted by the Company in 2011, 2012 or 2013. | |||||||||||||||||
The following table summarizes the stock option activity under the plans for the year ended December 31, 2013: | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (in thousands) | |||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding stock options at December 31, 2012 | 734,896 | $ | 12.44 | 2.8 | $ | 966 | |||||||||||
Granted | 0 | 0 | |||||||||||||||
Exercised | (282,031 | ) | 9.89 | ||||||||||||||
Forfeited | (625 | ) | 9.5 | ||||||||||||||
Expired | (17,500 | ) | 18.18 | ||||||||||||||
Outstanding stock options at December 31, 2013 | 434,740 | $ | 13.89 | 2.1 | $ | 1,913 | |||||||||||
Exercisable options at December 31, 2013 | 417,465 | $ | 13.97 | 2.1 | $ | 1,816 | |||||||||||
Unvested options at December 31, 2013 | 17,275 | $ | 11.92 | 2.8 | $ | 96 | |||||||||||
Outstanding, vested and expected to vest at December 31, 2013 | 434,740 | $ | 13.89 | 2.1 | $ | 1,913 | |||||||||||
The Company recorded stock option expense of $21,000, $54,000 and $107,000, for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||
During 2013, four executive officers of the Company elected and adopted to exercise outstanding stock options under Rule 10b5-1(c)(1) “10b5 Plans” under the Securities Exchange Act of 1934, as amended. Under the 10b5 plans, the officers elected to sell a portion or all of their outstanding nonqualified and incentive stock options that expire though May of 2015. A total of 320,764 stock options were made subject to the 10b5 plans. Of the total 282,031 options that were exercised in 2013, 232,420 options were exercised under the 10b5 plans. As of December 31, 2013, there are 88,344 options remaining under the 10b5 plans remaining to be exercised and sold. | |||||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2013, and 2011 and was $2.3 million and $284,000, respectively. No options were exercised in 2012. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
The weighted-average grant-date fair value per share in the table below is calculated by taking the number of shares of restricted stock issued divided by the total aggregate cost of the restricted shares issued. The aggregate cost of the restricted stock was calculated by multiplying the number of shares granted at each of the grant dates by the closing stock price of the Company’s common stock on the date of the grant. The following table summarizes the restricted stock activity under the Equity Plan for the year ended December 31, 2013: | |||||||||||||||||
Number | Weighted-Average | ||||||||||||||||
of Shares | Grant-Date Fair | ||||||||||||||||
Value per Share | |||||||||||||||||
Restricted Stock: | |||||||||||||||||
Unvested, at December 31, 2012 | 290,550 | $ | 11.99 | ||||||||||||||
Granted | 81,050 | 16.8 | |||||||||||||||
Vested | (93,950 | ) | 12.02 | ||||||||||||||
Cancelled and forfeited | (11,600 | ) | 11.06 | ||||||||||||||
Unvested, at December 31, 2013 | 266,050 | $ | 13.49 | ||||||||||||||
Compensation expense of $1.1 million, $1.1 million, and $1.4 million was recorded related to the above restricted stock grants for the years ended December 31, 2013, 2012 and 2011, respectively. Restricted stock awards are valued at the closing stock price on the date of grant and are expensed to stock based compensation expense over the period for which the related service is performed. The aggregate fair value at the date of vesting of the 93,950 shares of restricted stock that vested in 2013 was $1.4 million. |
Supplemental_Executive_and_Dir
Supplemental Executive and Director Retirement Plans | 12 Months Ended |
Dec. 31, 2013 | |
Postemployment Benefits [Abstract] | ' |
Supplemental Executive and Director Retirement Plans | ' |
Note 17 – Supplemental Executive and Director Retirement Plans | |
Supplemental Executive Retirement Plan | |
The Company adopted a non-qualified supplemental executive retirement plan (“SERP”) for certain executives of the Company, effective October 1, 2012. In addition, the Company acquired several SERP plans from the 2012 PC Bancorp acquisition. These SERP plans provide the designated executives with retirement benefits. Pre-retirement survivor benefits are provided for designated beneficiaries of participants who do not survive until retirement in an amount equal to the lump sum actuarial equivalent of the participant’s accrued benefit under the SERP. The SERP is considered an unfunded plan for tax and ERISA purposes. All obligations arising under the SERP are payable from the general assets of the Company. At December 31, 2013 and 2012, the SERP plan had accrued liabilities of $2.6 million and $2.1 million, respectively. | |
The Company acquired, as a result of its acquisition of PC Bancorp, a Supplemental Employee Salary Continuation Plan, a Deferred Director Fee Plan, and a Split Dollar Employee Insurance Plan for certain executive officers and one Director of PC Bancorp. At December 31, 2012, the accrued liability of the PC Bancorp Supplemental Employee Salary Plan was $1.6 million, and the accrued liability of the Deferred Director Fee Plan was $321,000. The Company recorded a total of $661,000 and $217,000 in deferred salary compensation expense for the years ended December 31, 2013 and 2012, respectively, related to the deferred compensation plans. The Company had no deferred salary compensation expense in 2011. | |
Split Dollar Employee Insurance Plan | |
The Company’s accrued liability for the Split Dollar Employee Insurance Plan was $1.1 million and $1.0 million at December 31, 2013 and 2012, respectively. The Company recorded split dollar life insurance expense of $36,000, $47,000 and $3,000 in 2013, 2012 and 2011 respectively, related to the split dollar policies. |
Defined_Contribution_Plan_401k
Defined Contribution Plan 401(k) | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Defined Contribution Plan 401(k) | ' |
Note 18 – Defined Contribution Plan 401(k) | |
The Company has a 401(k) defined contribution plan for the benefit of its employees. The plan allows eligible employees to contribute a portion of their income to a trust for investment on a pre-tax basis until retirement. Participants are 100% vested in their own deferrals. Effective as of January 1, 2013, the Company changed from a safe harbor election for employer contributions to an “employer match” type of contribution for the benefit of the employees covered under the plan. During both 2011 and 2012, the Company made “safe harbor” non-elective employer contributions, to all employees eligible under the plan. Under the employer match type of contribution that began in January of 2013, the Company has matched $0.50 on the dollar for every dollar the employee contributed to the plan, up to maximum of 4% of the employee’s eligible compensation. The dollar amount an individual employee may contribute to his plan has regulatory limits. | |
For 2012, and 2011, the Company elected to make “safe harbor” or Guaranteed Company Contribution of 3% of salary to all employees. Safe harbor contributions are immediately vested. The decision to make a Guaranteed Company Contribution is made by the Company on an annual basis. | |
The Company’s expense relating to the contributions made to the 401(k) plan for the benefit of its employees was $431,000, $383,000, and $325,000 for the years ended December 31, 2013, 2012, and 2011, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Note 19 – Income Taxes | |||||||||||||||||||||||||
The Company’s 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 basis plus Federal and California net operating losses and credits. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be realized, recovered and or settled. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The future realization of any of the Company’s deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the tax law. Based on historical and future expected taxable earnings and available strategies, the Company considers the future realization of these deferred tax assets more likely than not. | |||||||||||||||||||||||||
The tax effects from an uncertain tax position are recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. The Company believes that there are no material uncertain tax positions at December 31, 2013, 2012, and 2011. Interest and penalties related to uncertain tax positions are recorded as part of other operating expense. | |||||||||||||||||||||||||
The following tables reflect the changes in the composition and nature of the Company’s income tax provision for the past three years, in addition to the recorded balances of the Company’s deferred tax assets and liabilities at December 31, 2013 and December 31, 2012. The Company’s blended statutory tax rate was 42.05% and 41.15% at December 31, 2013 and 2012, respectively. The Company’s effective tax rate was approximately 33.85% for the year ended December 31, 2013. The lower effective tax rate is due primarily to the positive net change in the federal statutory tax rate from 34% in 2012 to 35% at December 31, 2013 when tax affecting the net federal deferred tax asset, the net tax benefit generated from the Company’s investment in LIHTC projects, increases in non-taxable income from the increase in the cash surrender value of bank owned life insurance policies, the tax benefits generated from non-qualifying dispositions of incentive stock options, investments in tax credits from the Company’s investment in COIN, and the net interest deduction on state taxes for loans located in the State of California enterprise zones. These decreases in the Company’s effective tax rate for 2013 were partially offset by non-taxable entertainment and business expense. | |||||||||||||||||||||||||
Income tax expense (benefit) consists of the following (dollars in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current provision | |||||||||||||||||||||||||
Federal | $ | 1,669 | $ | 2,497 | $ | 748 | |||||||||||||||||||
State | 238 | 265 | 337 | ||||||||||||||||||||||
Total current provision | 1,907 | 2,762 | 1,085 | ||||||||||||||||||||||
Deferred provision (benefit) | |||||||||||||||||||||||||
Federal | 2,674 | (917 | ) | 213 | |||||||||||||||||||||
State | 427 | (180 | ) | (151 | ) | ||||||||||||||||||||
Total deferred provision (benefit) | 3,101 | (1,097 | ) | 62 | |||||||||||||||||||||
Total current and deferred provision | $ | 5,008 | $ | 1,665 | $ | 1,147 | |||||||||||||||||||
The following is a summary of the components of the net deferred tax asset recognized in the accompanying balance sheets as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred Tax Assets | |||||||||||||||||||||||||
Federal tax operating loss carryforward | $ | 317 | $ | 520 | |||||||||||||||||||||
State tax operating loss carryforward | 168 | 293 | |||||||||||||||||||||||
Allowance for loan loss | 4,726 | 3,656 | |||||||||||||||||||||||
Purchase accounting and loan fair value adjustments | 5,558 | 8,763 | |||||||||||||||||||||||
Impairment charge on securities available-for-sale | 0 | 391 | |||||||||||||||||||||||
Accruals and other liabilities | 1,570 | 2,389 | |||||||||||||||||||||||
Stock compensation and deferred compensation costs | 3,145 | 2,869 | |||||||||||||||||||||||
Net unrealized loss on securities available-for-sale | 143 | 0 | |||||||||||||||||||||||
Start up, organizational and other costs | 255 | 287 | |||||||||||||||||||||||
Total deferred tax assets | 15,882 | 19,168 | |||||||||||||||||||||||
Deferred Tax Liabilities | |||||||||||||||||||||||||
Net unrealized gain on securities available-for-sale | (0 | ) | (975 | ) | |||||||||||||||||||||
State tax liability | (1,270 | ) | (1,288 | ) | |||||||||||||||||||||
Unamortized fair value on subordinated debentures | (1,402 | ) | (1,436 | ) | |||||||||||||||||||||
Core deposit intangibles | (478 | ) | (747 | ) | |||||||||||||||||||||
Prepaid expense and other | (815 | ) | (754 | ) | |||||||||||||||||||||
Total deferred tax liabilities | (3,965 | ) | (5,200 | ) | |||||||||||||||||||||
Valuation allowance | (82 | ) | (150 | ) | |||||||||||||||||||||
Deferred tax assets, net | $ | 11,835 | $ | 13,818 | |||||||||||||||||||||
The Company’s deferred tax assets and deferred tax liabilities include balances associated with the acquisition of PC Bancorp in 2012 and California Oaks State Bank (“COSB”) in 2010, which are non-taxable business combinations. These balances represent temporary differences for which deferred tax assets and liabilities are recognized because the financial statement carrying amounts of the acquired assets and assumed liabilities generally are their respective fair values at the date of the acquisition, whereas the tax basis equals the acquiree’s former tax basis (carryover tax basis). | |||||||||||||||||||||||||
The largest component of the combined net federal and state deferred tax assets are related to the fair value purchase accounting adjustment related to loans acquired in the mergers. The remaining deferred tax asset from the fair value purchase accounting adjustment on loans was $4.3 million at December 31, 2013 and $6.4 million at December 31, 2012. | |||||||||||||||||||||||||
The Company has federal net operating loss carryforwards attributable to the COSB acquisition of $906,000 and $1.5 million and state net operating loss carryforwards of $789,000 and $1.4 million at December 31, 2013, and 2012, respectively. The decrease in both the federal and state net operating loss carryforwards was attributable to the Company being able to utilize $624,000 in both federal and state net operating loss carryforwards in the 2013 tax provision. The federal and state net operating loss carryforwards from the COSB acquisition are subject to an annual limitation of $624,000 due to the ownership change on December 31, 2010. In addition, the Company has a state tax loss carryforward acquired from the PCB acquisition of $741,000 at December 31, 2013 and 2012, respectively. Due to the uncertainty surrounding the ability to fully utilize certain California deferred tax assets, a valuation allowance has been established. | |||||||||||||||||||||||||
In addition, the Company was able to utilize an additional $1.3 million of both federal and state net operating losses during 2013 that arose from CU Bancorp’s unconsolidated 2012 operating loss. Between the utilization of the COSB net operating loss carryforwards and the CU Bancorp previously unconsolidated net operating loss carryforwards, the Company was able to effectively utilize approximately $1.9 million in net federal and state operating loss carryforwards during 2013. | |||||||||||||||||||||||||
The Company made investments in Qualified Affordable Housing Projects during 2013, which generated low income housing tax credits and benefits net of investment amortization of $155,000. See Note 11- Investments in Qualified Affordable Housing Projects for a discussion on the investments. | |||||||||||||||||||||||||
The Company recorded an excess tax benefit related to the vesting of its restricted stock, the exercise of non-qualifying stock options and the recording of disqualifying dispositions following the exercises of incentive stock options in 2013. The federal and state excess tax benefits associated with the vesting of restricted stock during 2013 was $96,000 and was recorded to APIC. The federal and state excess tax benefits associated with exercise of non-qualified stock options during 2013 was $359,000 which was recorded to APIC. The federal and state excess tax benefits associated with the disqualifying disposition of incentive stock options exercised in 2013 was $355,000 of which $204,000 was recorded to APIC and $151,000 was recorded as a benefit to income tax expense in 2013. The total excess tax benefits recorded to APIC related to restricted stock and stock options was $659,000 during 2013. | |||||||||||||||||||||||||
Included in the 2013 tax provision for the year ended December 31, 2013 was a tax benefit of $326,000 related to the re-valuing of the Company’s deferred tax assets and liabilities using a federal statutory rate of 34% in 2012 to 35% in 2013. This 1% change in the federal statutory rate positively impacted the 2013 provision by $326,000. The increase in the statutory rate is due to increased profitability which causes the federal tax rate to move to the maximum bracket of 35% versus the 34% bracket utilized in prior years. | |||||||||||||||||||||||||
The following table presents a reconciliation of the statutory income tax rate to the consolidated effective income tax rate for each of the periods indicated (dollars in thousands): | |||||||||||||||||||||||||
For Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||
Federal income tax expense at statutory rate | $ | 5,178 | 35 | % | $ | 1,187 | 35 | % | $ | 915 | 35 | % | |||||||||||||
State franchise taxes, net of federal benefit, excluding LIHTC investments | 524 | 3.54 | 315 | 9.29 | 123 | 4.7 | |||||||||||||||||||
Effect of rate change on net deferred tax asset | (326 | ) | (2.20 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||
Release of state valuation allowance on use of net operating loss | (68 | ) | (0.46 | ) | (150 | ) | (4.43 | ) | 0 | 0 | |||||||||||||||
Meals and entertainment, dues and other non-deductible items | 54 | 0.37 | 47 | 1.39 | 38 | 1.46 | |||||||||||||||||||
Cash surrender life insurance | (210 | ) | (1.42 | ) | (91 | ) | (2.68 | ) | 0 | 0 | |||||||||||||||
Stock compensation expense | (126 | ) | (0.85 | ) | 39 | 1.15 | 1 | 0.02 | |||||||||||||||||
LIHTC investments | (155 | ) | (1.05 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||
Merger costs | 5 | 0.03 | 300 | 8.84 | 89 | 3.42 | |||||||||||||||||||
Other | 132 | 0.89 | 18 | 0.53 | (19 | ) | (0.73 | ) | |||||||||||||||||
$ | 5,008 | 33.85 | % | $ | 1,665 | 49.09 | % | $ | 1,147 | 43.88 | % | ||||||||||||||
Common_Stock
Common Stock | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Common Stock | ' |
Note 20 – Common Stock | |
The Company’s outstanding common stock increased by 322,690 shares to 11,081,364 at December 31, 2013. The increase in the outstanding shares is outlined below: | |
During 2013, the Company issued 282,031 shares of stock from the exercise of employee stock options for a total value of $2.8 million. In addition, the Company issued 81,050 shares of restricted stock to the Company’s directors and employees, cancelled 11,600 shares of unvested restricted stock related to employee turnover and cancelled 29,863 shares of restricted stock that had a value of $422,000, when employees elected to pay their tax obligation via the repurchase of the stock by the Company. The net issuance of restricted stock for 2013 was 69,450 shares. See Note 16 – Stock Options and Restricted Stock under “Equity Compensation Plans” for a more detailed analysis related to the issuances of these shares. | |
The Company has a program that allows employees to make an election to have a portion of their restricted stock that became vested during the year repurchased by the Company to provide funds to pay the employee’s tax obligation related to the vesting of the stock. During 2013 and 2012, a number of the Company’s employees elected to participate in this program. | |
During 2012, as part of the merger with PC Bancorp, the Company initially issued 3,721,382 shares of common stock on July 31, 2012 to the shareholders of PC Bancorp. Subsequent to the merger date there were two dissenting shareholders that exchanged their right to receive 685 shares of CU Bancorp stock at an exchange rate of $10.25 per share for an aggregate of $7,000. See Note 2 – Business Combinations for a detailed discussion of the merger. In addition, the Company issued 117,300 shares of restricted stock to the Company’s directors and employees, cancelled 7,000 shares of unvested restricted stock related to employee turnover and retired 22,421 shares of restricted stock that had a value of $228,000 when employees elected to pay their tax obligation via the repurchase of the stock by the Company. The net issuance of restricted stock for 2012 was 110,300 shares. | |
On March 31, 2011, the Company issued 805,156 shares of common stock through a private placement offering to a total of 12 accredited institutional investors, none of whom were directors or officers of the Company. This private placement offering generated a total of $10.3 million in gross cash proceeds. This amount was offset by $569,000 in associated cost and expenses which resulted in net proceeds to the Company of $9.7 million. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Other Comprehensive Income (Loss) | ' | ||||||||||||
Note 21 – Other Comprehensive Income (Loss) | |||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component for the periods indicated (dollars in thousands): | |||||||||||||
Before | Tax | Net of | |||||||||||
Tax | Effect | Tax | |||||||||||
Year ended December 31, 2013 | |||||||||||||
Net unrealized gains (losses) on investment securities: | |||||||||||||
Beginning balance | $ | 2,369 | $ | (975 | ) | $ | 1,394 | ||||||
Non-credit portion of other-than-temporary impairments arising during the period | (41 | ) | 17 | (24 | ) | ||||||||
Net unrealized losses arising during the period | (2,629 | ) | 1,082 | (1,547 | ) | ||||||||
Other comprehensive loss before reclassification | (2,670 | ) | 1,099 | (1,571 | ) | ||||||||
Reclassification adjustment for gains realized in net income | (47 | ) | 19 | (28 | ) | ||||||||
Net other comprehensive loss | (2,717 | ) | 1,118 | (1,599 | ) | ||||||||
Ending balance | $ | (348 | ) | $ | 143 | $ | (205 | ) | |||||
Year ended December 31, 2012 | |||||||||||||
Net unrealized gains on investment securities: | |||||||||||||
Beginning balance | $ | 1,535 | $ | (645 | ) | $ | 890 | ||||||
Non-credit portion of other-than-temporary impairments arising during the period | 766 | (321 | ) | 445 | |||||||||
Net unrealized gains arising during the period | 68 | (9 | ) | 59 | |||||||||
Net other comprehensive income | 834 | (330 | ) | 504 | |||||||||
Ending balance | $ | 2,369 | $ | (975 | ) | $ | 1,394 | ||||||
The table below presents the components of accumulated other comprehensive income (loss) as of the dates indicated (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Net unrealized gain (loss) on non other-than-temporarily impaired investment securities | $ | (348 | ) | $ | 2,332 | ||||||||
Net unrealized gain on other-than-temporarily impaired investment securities | 0 | 37 | |||||||||||
Total net unrealized gain (loss) on investment securities | (348 | ) | 2,369 | ||||||||||
Tax (expense) benefit | 143 | (975 | ) | ||||||||||
Total accumulated other comprehensive income (loss) | $ | (205 | ) | $ | 1,394 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note 22 – Commitments and Contingencies | |
The Company follows accounting guidance related to “Accounting for Contingencies” which provides criteria for determining whether a company must accrue or disclosure a loss contingency. Under these guidelines, a loss contingency is defined as “an existing condition, situation, or set of circumstances involving uncertainty to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur. A potential loss resulting from pending litigation is to be accrued when it is probable that one or more future events will occur confirming the fact of the loss and when “the amount of the loss can be reasonably estimated.” If an enterprise determines that one or both of these conditions have not been met, accounting guidance requires an enterprise to disclose a loss contingency when “there is at least a reasonable possibility that a loss may have occurred.” This disclosure “shall give an estimate of the possible loss or range of losses or state that such an estimate cannot be made.” Neither accrual nor disclosure is required when the probability of the future events occurring that would trigger the loss for the enterprise is considered to be remote. | |
Litigation | |
From time to time the Company is a party to claims and legal proceedings arising in the ordinary course of business. The Company accrues for any probable loss contingencies that are estimable and discloses any material losses. As of December 31, 2013, there were no legal proceedings against the Company the outcome of which are expected to have a material adverse impact on the Company’s financial position, results of operations or cash flows, as a whole. | |
Financial Instruments with Off Balance Sheet Risk | |
In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit. To varying degrees, these instruments involve elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit is represented by the contractual amount of those instruments. | |
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. Some of the Company’s commitments are expected to expire without being drawn upon, with the total commitment amounts not necessarily representing future cash funding requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, income-producing commercial properties, residential properties and properties under construction. | |
Financial instruments with off balance sheet risk include commitments to extend credit of $346 million and $295 million at December 31, 2013 and 2012, respectively. Included in the aforementioned commitments were standby letters of credit outstanding of $40.6 million and $22.7 million at December 31, 2013 and 2012, respectively. As of December 31, 2013 and 2012, the Company had established an allowance for unfunded loan commitments of $329,000 and $256,000, respectively. These balances are included in other liabilities on the balance sheet. These balances represent 0.1% of unfunded loan commitments at December 31, 2013 and 2012, respectively. |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Regulatory Matters | ' | ||||||||||||||||||||||||
Note 23 – Regulatory Matters | |||||||||||||||||||||||||
The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital requirements that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||||||||||
The Company currently includes in Tier 1 capital an amount of subordinated debentures equal to no more than 25% of the sum of all core capital elements, which is generally defined as shareholders’ equity less goodwill, core deposit intangibles and a portion of the SBA servicing assets. On July 2, 2013, the Board of Governors of the Federal Reserve System (“Federal Reserve”) approved a final rule (the “Final Rule”) that revises the current capital rules for U.S. banking organizations including the capital rules for the Company. The FDIC adopted the rule as an “interim final rule” on July 9, 2013. The Final Rule implements the regulatory capital reforms recommended by the Basel Committee. The Final Rule permanently grandfathers non-qualifying capital instruments (such as trust preferred securities and cumulative perpetual preferred stock) issued before May 19, 2010 for inclusion in the Tier 1 capital of banking organizations with total consolidated assets less than $15 billion as of December 31, 2009, such as the Company. As a result the Company’s trust preferred securities will continue to be included in Tier 1 capital. | |||||||||||||||||||||||||
As of December 31, 2013, the Company and the Bank are categorized as well-capitalized under the regulatory framework for Prompt Corrective Action. To be categorized as well-capitalized the Company and Bank must maintain minimum Total risk-based capital, Tier 1 risk-based capital and Tier 1 leverage ratios, as set forth in the following table. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts (as set forth in the table below) of Total capital and Tier 1 capital (as defined in the regulations) and ratios of Total capital and Tier 1 capital to risk-weighted assets (as defined) and to average assets (as defined). | |||||||||||||||||||||||||
The following tables present the Tier 1 Leverage Ratio, Tier 1 Risk-Based Capital Ratio and the Total Risk-Based Capital Ratio of the Consolidated Company in addition to the Bank as of December 31, 2013, and December 31, 2012, and compare the actual ratios to the capital requirements imposed by government regulations. All amounts reflected in the table below are stated in thousands, except percentages: | |||||||||||||||||||||||||
CU Bancorp Consolidated: | |||||||||||||||||||||||||
Actual | For Capital Adequacy | To Be Well- | |||||||||||||||||||||||
Purposes | Capitalized Under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 145,372 | 12.8 | % | $ | 90,844 | 8 | % | $ | 113,555 | 10 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | 134,440 | 11.84 | % | 45,422 | 4 | % | 68,133 | 6 | % | ||||||||||||||||
Tier 1 Leverage Ratio | 134,440 | 9.57 | % | 56,172 | 4 | % | 70,215 | 5 | % | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 126,177 | 12.35 | % | $ | 81,753 | 8 | % | $ | 102,191 | 10 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | 117,118 | 11.46 | % | 40,876 | 4 | % | 61,315 | 6 | % | ||||||||||||||||
Tier 1 Leverage Ratio | 117,118 | 9.13 | % | 51,290 | 4 | % | 64,113 | 5 | % | ||||||||||||||||
California United Bank: | |||||||||||||||||||||||||
Actual | For Capital Adequacy | To Be Well- | |||||||||||||||||||||||
Purposes | Capitalized Under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 135,682 | 11.96 | % | $ | 90,772 | 8 | % | $ | 113,465 | 10 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | 124,750 | 10.99 | % | 45,386 | 4 | % | 68,079 | 6 | % | ||||||||||||||||
Tier 1 Leverage Ratio | 124,750 | 8.9 | % | 56,082 | 4 | % | 70,102 | 5 | % | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 118,405 | 11.61 | % | $ | 81,615 | 8 | % | $ | 102,019 | 10 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | 109,346 | 10.72 | % | 40,808 | 4 | % | 61,211 | 6 | % | ||||||||||||||||
Tier 1 Leverage Ratio | 109,346 | 8.55 | % | 51,133 | 4 | % | 63,917 | 5 | % | ||||||||||||||||
Restrictions on Dividends | |||||||||||||||||||||||||
To date, the Company has not paid any cash dividends. Payment of stock or cash dividends in the future will depend upon earnings, liquidity, financial condition and other factors deemed relevant by our Board of Directors. Notification to the FRB is required prior to declaring and paying a dividend to shareholders that exceeds earnings for the period for which the dividend is being paid. This notification requirement is included in regulatory guidance regarding safety and soundness surrounding capital and includes other non-financial measures such as asset quality, financial condition, capital adequacy, liquidity, future earnings projections, capital planning and credit concentrations. Should the FRB object to dividend payments, the Company would be precluded from declaring and paying dividends until approval is received or the Company no longer needs to provide notice under applicable guidance. | |||||||||||||||||||||||||
California law also limits the Company’s ability to pay dividends. A corporation may make a distribution/dividend from retained earnings to the extent that the retained earnings exceed (a) the amount of the distribution plus (b) the amount if any, of dividends in arrears on shares with preferential dividend rights. Alternatively, a corporation may make a distribution/dividend, if, immediately after the distribution, the value of its assets equals or exceeds the sum of (a) its total liabilities plus (b) the liquidation preference of any shares which have a preference upon dissolution over the rights of shareholders receiving the distribution/dividend. | |||||||||||||||||||||||||
The Bank is subject to certain restrictions on the amount of dividends that may be declared without regulatory approval. Such dividends shall not exceed the lesser of the Bank’s retained earnings or net income for its last three fiscal years less any distributions to shareholders made during such period. In addition, the Bank may not pay dividends that would result in its capital being reduced below the minimum requirements shown above for capital adequacy purposes. |
Fair_Value_Information
Fair Value Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Information | ' | ||||||||||||||||||||||||
Note 24 – Fair Value Information | |||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including both those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis and a non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value, and for estimating the fair value of financial assets and financial liabilities not recorded at fair value, are discussed below. | |||||||||||||||||||||||||
In accordance with accounting guidance, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are as follows: | |||||||||||||||||||||||||
• | Level 1 – Observable unadjusted quoted market prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||||||||||||
• | Level 2 – Significant other observable market based inputs, other than Level 1 prices such as quoted prices for similar assets or liabilities or unobservable inputs that are corroborated by market data. This includes quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data, either directly or indirectly. This would include those financial instruments that are valued using models or other valuation methodologies where substantially all of the assumptions are observable in the marketplace, can be derived from observable market data or are supported by observable levels at which transactions are executed in the marketplace. | ||||||||||||||||||||||||
• | Level 3 – Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets measured utilizing level 3 are for positions that are not traded in active markets or are subject to transfer restrictions, and or where valuations are adjusted to reflect illiquidity and or non-transferability. These assumptions are not corroborated by market data. This is comprised of financial instruments whose fair value is estimated based on internally developed models or methodologies utilizing significant inputs that are generally less readily observable from objective sources. Management uses a combination of reviews of the underlying financial statements, appraisals and management’s judgment regarding credit quality to determine the value of the financial asset or liability. | ||||||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Management maximizes the use of observable inputs and attempts to minimize the use of unobservable inputs when determining fair value measurements. The following is a description of both the general and specific valuation methodologies used for certain instruments measured at fair value, as well as the general classification of these instruments pursuant to the valuation hierarchy. | |||||||||||||||||||||||||
Investment Securities Available-for-Sale: The fair value of securities available-for-sale may be determined by obtaining quoted prices in active markets, when available, from nationally recognized securities exchanges (Level 1 financial assets) If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique widely used in the securities industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities which are observable market inputs (Level 2 financial assets). Debt securities’ pricing is generally obtained from one of the matrix pricing models developed from one of the three national pricing agencies. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3 financial assets. | |||||||||||||||||||||||||
Securities classified as available-for-sale are accounted for at their current fair value rather than amortized historical cost. Unrealized gains or losses are excluded from net income and reported as an amount net of taxes as a separate component of accumulated other comprehensive income included in shareholders’ equity. | |||||||||||||||||||||||||
The Company considers the inputs utilized to fair value the U.S. Agency and U.S. Sponsored Agency issued debt securities (callable and non-callable notes), mortgage backed securities guaranteed by those agencies, collateralized mortgage obligations issued by those agencies, corporate bond securities, and municipal securities to be observable market inputs and classified these financial assets within the Level 2 fair value hierarchy. Management bases the fair value for these investments primarily on third party price indications provided by independent pricing sources utilized by the Company’s bond accounting system to obtain market pricing on its individual securities. Vining Sparks, who provides the Company with its bond accounting system, utilizes pricing from three independent third party pricing sources for pricing of securities. These third party pricing sources utilize, quoted market prices or when quoted market prices are not available, then fair values are estimated using nationally recognized third-party vendor pricing models of which the inputs are observable. However, the fair value reported may not be indicative of the amounts that could be realized in an actual market exchange. | |||||||||||||||||||||||||
The fair value of the Company’s U.S. Agency and U.S. Sponsored Agency callable and non-callable agency securities, mortgage backed securities guaranteed by those agencies, and collateralized mortgage obligations issued by those agencies, corporate bond securities, and municipal securities are calculated using an option adjusted spread model from one of the nationally recognized third-party pricing models. Depending on the assumptions used and the treasury yield curve and other interest rate assumptions, the fair value could vary significantly in the near term. | |||||||||||||||||||||||||
Loans: The fair value for loans is estimated by discounting the expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities, adjusted for the allowance for loan loss. Loans are segregated by type such as commercial and industrial, commercial real estate, construction and other loans with similar credit characteristics and are further segmented into fixed and variable interest rate loan categories. Expected future cash flows are projected based on contractual cash flows, adjusted for estimated prepayments. The inputs utilized in determining the fair value of loans are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Impaired Loans: The fair value of impaired loans is determined based on an evaluation at the time the loan is originally identified as impaired, and periodically thereafter, at the lower of cost or fair value. Fair value on impaired loans is measured based on the value of the collateral securing these loans, less costs to sell, if the loan is collateral dependent, or based on the discounted cash flows for non collateral dependent loans. Collateral on collateral dependent loans may be real estate and/or business assets including equipment, inventory and/or accounts receivable and is determined based on appraisals performed by qualified licensed appraisers hired by the Company. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Such discounts are typically significant and unobservable. For unsecured loans, the estimated future discounted cash flows of the business or borrower, are used in evaluating the fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. The inputs utilized in determining the fair value of impaired loans are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Interest Rate Swap Contracts: The fair value of the interest rate swap contracts are provided by an independent third party vendor that specializes in interest rate risk management and fair value analysis using a system that utilizes current market data to estimate cash flows of the interest rate swaps utilizing the future LIBOR yield curve for accruing and the future Overnight Index Swap Rate (Fed Funds Effective Swap Rate) “OIS” yield curve for discounting through the maturity date of the interest rate swap contract. The forward LIBOR yield curve is the primary input in the valuation of the interest rate swap contracts. Both the LIBOR and OIS yield curves are readily observable in the marketplace. Accordingly, the interest rate swap contracts are classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Other Real Estate Owned: The fair value of other real estate owned is generally based on real estate appraisals (unless more current market information is available) less estimated costs of sale. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant. The inputs utilized in determining the fair value of other real estate owned are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
SBA Servicing Asset: The Company acquired an SBA servicing asset with the PC Bancorp merger and has added to the servicing asset with the sale of SBA loans subsequent to the merger. This servicing asset was initially fair valued at the merger date based on an evaluation by a third party who specializes in fair value analysis. The fair value of this asset was based on the estimated discounted future cash flows utilizing market based discount rates and estimated prepayment speeds. The discount rate was based on the current U.S. Treasury yield curve, plus a spread for marketplace risk associated with these assets. Prepayment speeds were selected based on the historical prepayments of similar SBA pools. The prepayment speeds determine the timing of the cash flows. The SBA servicing asset is amortized over the estimated life of the loans based on an effective yield approach. In addition, the Company’s servicing asset is evaluated regularly for impairment by discounting the estimated future cash flows using market-based discount rates and prepayment speeds. If the calculated present value of the servicing asset declines below the Company’s current carrying value, the servicing asset is written down to its present value. Based on the Company’s methodology in its valuation of the SBA servicing asset, the current carrying value is estimated to approximate the fair value. The inputs utilized in determining the fair value of SBA servicing asset are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Non-Maturing Deposits: The fair values for non-maturing deposits (deposits with no contractual termination date), which include non-interest bearing demand deposits, interest bearing transaction accounts, money market deposits and savings accounts are equal to their carrying amounts, which represent the amounts payable on demand. Because the carrying value and fair value are by definition identical, and accordingly non-maturity deposits are classified within Level 1 of the fair value hierarchy, these balances are not listed in the following tables. | |||||||||||||||||||||||||
Maturing Deposits: The fair values of fixed maturity certificates of deposit (time deposits) are estimated using a discounted cash flow calculation that applies current market deposit interest rates to the Company’s current certificates of deposit interest rates for similar term certificates. The rates being paid on certificates of deposit not acquired from PC Bancorp at December 31, 2013 and December 31, 2012, were generally identical to the market interest rates for comparable terms and thus both the carry amount and fair value are generally considered approximately identical as of the reporting dates. The deposits acquired from PC Bancorp were initially adjusted to their fair value at the date of acquisition. The interest rates used to calculate the fair value adjustments on the PCB certificates were considered to be the market rates at the date of acquisition. The inputs utilized in determining the fair value of maturing deposits are unobservable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Securities Sold under Agreements to Repurchase (“Repos”): The fair value of securities sold under agreements to repurchase is estimated based on the discounted value of future cash flows expected to be paid on the deposits. The carrying amounts of Repos with maturities of 90 days or less approximate their fair values. The fair value of Repos with maturities greater that 90 days is estimated based on the discounted value of the contractual future cash flows. The inputs utilized in determining the fair value of securities sold under agreements to repurchase are observable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Subordinated Debentures: The fair value of the three variable rate subordinated debentures (“debentures”) is estimated using a discounted cash flow calculation that applies the three month LIBOR plus the margin index at December 31, 2013, to the cash flows from the debentures, based on the actual interest rate the debentures were accruing at December 31, 2013. Because all three of the debentures re-priced on December 16, 2013 based on the current three month LIBOR index rate plus the index margin at that date, and with relatively little to no change in the three month LIBOR index rate from the re-pricing date through December 31, 2013, the current face value of the debentures and their calculated fair value are approximately equal. The inputs utilized in determining the fair value of subordinated debentures are observable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Fair Value of Commitments: Loan commitments that are priced on an index plus a margin to a market rate of interest are reported at the carrying value of the loan commitment. Loan commitments on which the committed fixed interest rate is less than the current market rate were insignificant at December 31, 2013 and 2012. | |||||||||||||||||||||||||
Interest Rate Risk: The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. In addition, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall rate risk. | |||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
The following table summarizes the financial assets and financial liabilities measured at fair value on a recurring basis as of the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands): | |||||||||||||||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Carrying | in Active | Other | Unobservable | ||||||||||||||||||||||
Value | Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
Financial Assets – December 31, 2013 | |||||||||||||||||||||||||
Investment securities available-for-sale | $ | 106,488 | $ | 0 | $ | 106,488 | $ | 0 | |||||||||||||||||
Financial Liabilities – December 31, 2013 | |||||||||||||||||||||||||
Interest Rate Swap Contracts | $ | 3,943 | $ | 0 | $ | 3,943 | $ | 0 | |||||||||||||||||
Financial Assets – December 31, 2012 | |||||||||||||||||||||||||
Investment securities available-for-sale | $ | 118,153 | $ | 0 | $ | 115,243 | $ | 2,910 | |||||||||||||||||
Financial Liabilities – December 31, 2012 | |||||||||||||||||||||||||
Interest Rate Swap Contracts | $ | 6,038 | $ | 0 | $ | 6,038 | $ | 0 | |||||||||||||||||
The investment securities that comprise the balances reflected in the “Significant Unobservable Inputs (Level 3)” as of December 31, 2012 include the private issue CMO securities. These securities were sold during the first quarter of 2013 for a net gain of $5,000. | |||||||||||||||||||||||||
The private issue CMO securities were valued at December 31, 2012 utilizing pricing obtained from the national market pricing services that are utilized in the Company’s bond accounting system. Due to the price volatility associated with these securities, the Company classified them as a level 3. The roll forward of these securities is listed in the table below. | |||||||||||||||||||||||||
The following table presents a roll forward of all assets and liabilities and additional information about the financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the dates and periods indicated (dollars in thousands): | |||||||||||||||||||||||||
Financial Assets – Measured at | |||||||||||||||||||||||||
Fair Value on a Recurring Basis | |||||||||||||||||||||||||
using Unobservable Inputs | |||||||||||||||||||||||||
Balance | Included in | Included in | Purchases, | Transfers | Balance at | ||||||||||||||||||||
at | Earnings | Other | Issuances, | into | December 31 | ||||||||||||||||||||
January 1 | Comprehensive | Sales, | (out of) | ||||||||||||||||||||||
Income (Loss) | Settlements | Level 3 | |||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Private Issue CMO Securities (1) | $ | 2,910 | $ | (5 | ) | $ | (866 | ) | $ | (2,039 | ) | $ | 0 | $ | 0 | ||||||||||
Total | $ | 2,910 | $ | (5 | ) | $ | (866 | ) | $ | (2,039 | ) | $ | 0 | $ | 0 | ||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
Private Issue CMO Securities | $ | 2,775 | $ | (137 | ) | $ | 766 | $ | (494 | ) | $ | 0 | $ | 2,910 | |||||||||||
U.S. Government Sponsored Agency CMO Securities (2) | 2,379 | (1 | ) | 9 | (591 | ) | (1,796 | ) | 0 | ||||||||||||||||
Total | $ | 5,154 | $ | (138 | ) | $ | 775 | $ | (1,085 | ) | $ | (1,796 | ) | $ | 2,910 | ||||||||||
-1 | The Company sold all of its Private Issue CMO Securities in January 2013. | ||||||||||||||||||||||||
-2 | The FDIC issued security is assumed to have been transferred to a level 2 category at the beginning of 2012, based on the market pricing of the security. | ||||||||||||||||||||||||
Assets Measured at Fair Value on a Non-recurring Basis | |||||||||||||||||||||||||
The Company may be required periodically, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of or during the period. | |||||||||||||||||||||||||
The following table presents the balances of assets and liabilities measured at fair value on a non-recurring basis by caption and by level within the fair value hierarchy as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
Recorded | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Investment | in Active | Other | Unobservable | ||||||||||||||||||||||
Carrying | Markets for | Observable | Inputs | ||||||||||||||||||||||
Value | Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Financial Assets – December 31, 2013 | |||||||||||||||||||||||||
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) | $ | 264 | $ | 0 | $ | 0 | $ | 267 | |||||||||||||||||
Total | $ | 264 | $ | 0 | $ | 0 | $ | 267 | |||||||||||||||||
Financial Assets – December 31, 2012 | |||||||||||||||||||||||||
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs offs (non-purchased credit impaired loans) | $ | 2,056 | $ | 0 | $ | 0 | $ | 2,269 | |||||||||||||||||
Other real estate owned | 3,112 | 0 | 0 | 3,112 | |||||||||||||||||||||
Total | $ | 5,168 | $ | 0 | $ | 0 | $ | 5,381 | |||||||||||||||||
The decrease in the balances between December 31, 2013 and December 31, 2012, reflect the sale of the Company’s single other real estate owned property in the 4th quarter of 2013, and the payoff and charge off of three loans during the 3rd and 4th quarters of 2013. The remaining balance at December 31, 2013 represents two collateral dependent loans. These balances do not include purchased credit impaired loans acquired in either the COSB or PC Bancorp acquisitions. | |||||||||||||||||||||||||
The following table presents the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
Fair Value at | Valuation | Significant | Significant | ||||||||||||||||||||||
December 31, | Technique | Unobservable Inputs | Unobservable Input | ||||||||||||||||||||||
2013 | Values | ||||||||||||||||||||||||
Financial Assets – December 31, 2013 | |||||||||||||||||||||||||
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off (1) | $287 | Internal valuation of | Management assumption | $287 | |||||||||||||||||||||
Accounts Receivable | regarding collectability of | ||||||||||||||||||||||||
aging, net of credit loss | accounts receivable aging | ||||||||||||||||||||||||
estimate and | report, and real estate | ||||||||||||||||||||||||
Commercial Real | appraisal report | ||||||||||||||||||||||||
Estate appraisal | |||||||||||||||||||||||||
Less estimated selling costs | $20 | ||||||||||||||||||||||||
-1 | During 2013, the Company recorded total charge-offs of $605,000 on the principal balance of the two loans. | ||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | |||||||||||||||||||||||||
ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company could have realized in a current market exchange as of December 31, 2013 and December 31, 2012. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The description of the valuation methodologies used for financial instruments measured at fair value and for estimating fair value for financial instruments not recorded at fair value has been described above. | |||||||||||||||||||||||||
The table below presents the level in the fair value hierarchy for the financial instruments estimated fair values, as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
Carrying | Fair Value | Quoted | Significant | Significant | |||||||||||||||||||||
Amount | Prices in | Other | Unobservable | ||||||||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||||||||||
for | (Level 2) | ||||||||||||||||||||||||
Identical | |||||||||||||||||||||||||
Assets or | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||
Investment securities available-for-sale | $ | 106,488 | $ | 106,488 | $ | 0 | $ | 106,488 | $ | 0 | |||||||||||||||
Loans, net | 922,591 | 926,500 | 0 | 0 | 926,500 | ||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Certificates of deposit | 63,581 | 63,680 | 0 | 63,680 | 0 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 11,141 | 11,141 | 0 | 11,141 | 0 | ||||||||||||||||||||
Subordinated debentures | 9,379 | 12,372 | 0 | 0 | 12,372 | ||||||||||||||||||||
Interest rate swap contracts | 3,943 | 3,943 | 0 | 3,943 | 0 | ||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||
Investment securities available-for-sale | $ | 118,153 | $ | 118,153 | $ | 0 | $ | 115,243 | $ | 2,910 | |||||||||||||||
Loans, net | 846,082 | 848,146 | 0 | 0 | 848,146 | ||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Certificates of deposit | 81,336 | 81,648 | 0 | 81,648 | 0 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 22,857 | 22,857 | 0 | 22,857 | 0 | ||||||||||||||||||||
Subordinated debentures | 9,169 | 12,372 | 0 | 0 | 12,372 | ||||||||||||||||||||
Interest rate swap contracts | 6,038 | 6,038 | 0 | 6,038 | 0 |
Reclassification
Reclassification | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Reclassification | ' |
Note 25 – Reclassification | |
Certain amounts in the prior year’s financial statements and related disclosures were reclassified to conform to the current year presentation with no effect on previously reported net income or shareholders’ equity. |
Summary_Quarterly_Data
Summary Quarterly Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary Quarterly Data | ' | ||||||||||||||||||||||||||||||||
Note 26 – Summary Quarterly Data (unaudited) | |||||||||||||||||||||||||||||||||
2013 Quarters Ended | 2012 Quarters Ended | ||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Dec. | Sept. | June | Mar. | Dec. | Sept. | June | Mar. | |||||||||||||||||||||||||
31 | 30 | 30 | 31 | 31 | 30 | 30 | 31 | ||||||||||||||||||||||||||
Interest income | $ | 12,841 | $ | 12,822 | $ | 13,114 | $ | 12,069 | $ | 12,457 | $ | 10,400 | $ | 7,161 | $ | 7,478 | |||||||||||||||||
Interest expense | 498 | 516 | 534 | 531 | 696 | 626 | 236 | 239 | |||||||||||||||||||||||||
Net interest income | 12,343 | 12,306 | 12,580 | 11,538 | 11,761 | 9,774 | 6,925 | 7,239 | |||||||||||||||||||||||||
Provision for loan losses | 934 | 631 | 1,153 | 134 | 867 | 521 | 380 | 0 | |||||||||||||||||||||||||
Net interest income after provision for loan losses | 11,409 | 11,675 | 11,427 | 11,404 | 10,894 | 9,253 | 6,545 | 7,239 | |||||||||||||||||||||||||
Non-interest income | 1,931 | 1,471 | 1,690 | 1,426 | 1,402 | 1,185 | 752 | 622 | |||||||||||||||||||||||||
Non-interest expense | 9,620 | 9,430 | 9,281 | 9,309 | 9,502 | 11,823 | 6,270 | 6,905 | |||||||||||||||||||||||||
Net income (loss) before provision for income tax expense (benefit) | 3,720 | 3,716 | 3,836 | 3,521 | 2,794 | (1,385 | ) | 1,027 | 956 | ||||||||||||||||||||||||
Provision for income tax (benefit) | 888 | 1,239 | 1,515 | 1,366 | 1,166 | (453 | ) | 502 | 450 | ||||||||||||||||||||||||
Net Income (Loss) | $ | 2,832 | $ | 2,477 | $ | 2,321 | $ | 2,155 | $ | 1,628 | $ | (932 | ) | $ | 525 | $ | 506 | ||||||||||||||||
Basic income (loss) per share | $ | 0.26 | $ | 0.24 | $ | 0.22 | $ | 0.21 | $ | 0.16 | $ | (0.10 | ) | $ | 0.08 | $ | 0.08 | ||||||||||||||||
Diluted income (loss) per share | $ | 0.26 | $ | 0.23 | $ | 0.22 | $ | 0.2 | $ | 0.15 | $ | (0.10 | ) | $ | 0.08 | $ | 0.07 | ||||||||||||||||
Condensed_Financial_Informatio
Condensed Financial Information of Parent Company | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||
Condensed Financial Information of Parent Company | ' | ||||||||
Note 27 – Condensed Financial Information of Parent Company | |||||||||
CU Bancorp, a California Corporation, was formed to facilitate a reorganization to create a bank holding company for the Bank in 2012. CU Bancorp became the parent of the Bank through a reorganization that occurred at the end of business on July 31, 2012. The following tables present the parent company only condensed balance sheets and the related statements of net earnings and condensed statements of cash flows for the dates and periods indicated (dollars in thousands): | |||||||||
Parent Company Only Condensed Balance Sheets | December 31, | ||||||||
2013 | 2012 | ||||||||
ASSETS | |||||||||
Cash and due from banks | $ | 4,348 | $ | 1,477 | |||||
Certificates of deposit in other financial institutions | 0 | 370 | |||||||
Loans | 1,786 | 2,472 | |||||||
Investment in subsidiary | 141,020 | 130,217 | |||||||
Accrued interest receivable and other assets | 207 | 353 | |||||||
Total Assets | $ | 147,361 | $ | 134,889 | |||||
LIABILITIES | |||||||||
Subordinated debentures | $ | 9,379 | $ | 9,169 | |||||
Accrued interest payable and other liabilities | 58 | 97 | |||||||
Total Liabilities | 9,437 | 9,266 | |||||||
SHAREHOLDERS’ EQUITY | 137,924 | 125,623 | |||||||
Total Liabilities and Shareholders’ Equity | $ | 147,361 | $ | 134,889 | |||||
Parent Company Only Condensed Statements of Income | Years Ended December 31, | ||||||||
2013 | 2012 | ||||||||
Interest Income | $ | 172 | $ | 93 | |||||
Interest Expense | 485 | 331 | |||||||
Operating Expenses | 556 | 225 | |||||||
Total Expenses | 1,041 | 556 | |||||||
Loss Before Income Tax Benefit and Equity in Undistributed Earnings of Subsidiary | (869 | ) | (463 | ) | |||||
Income tax benefit | 371 | 138 | |||||||
Loss Before Equity in Undistributed Earnings of Subsidiary | (498 | ) | (325 | ) | |||||
Equity in undistributed earnings of subsidiary | 10,283 | 2,052 | |||||||
Net Income | $ | 9,785 | $ | 1,727 | |||||
Parent Company Only Condensed Statements of Cash Flows | Years Ended December 31, | ||||||||
2013 | 2012 | ||||||||
Cash flows from operating activities: | |||||||||
Net income: | $ | 9,785 | $ | 1,727 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||
Equity in undistributed earnings of subsidiary | (10,283 | ) | (2,052 | ) | |||||
Net accretion of discounts/premiums | (36 | ) | (32 | ) | |||||
Accretion of subordinated debenture discount | 210 | 94 | |||||||
Net change in fair value of interest rate contract | (70 | ) | (65 | ) | |||||
Increase in accrued interest receivable and other assets | (226 | ) | (12 | ) | |||||
Decrease in accrued interest payable and other liabilities | 32 | 25 | |||||||
Net cash provided by (used in) operating activities | 588 | (315 | ) | ||||||
Cash flows from investing activities: | |||||||||
Cash and cash equivalents acquired in acquisition, net of cash paid | 0 | 2,681 | |||||||
Capital contribution made to subsidiary | 0 | (1,350 | ) | ||||||
Cash paid for stock options to PCB employees and dissenting shareholders | 0 | (463 | ) | ||||||
Cash paid related to stock issuance | 0 | (199 | ) | ||||||
Maturity of Certificate of Deposit | 370 | ||||||||
Net decrease in loans | 721 | 194 | |||||||
Net cash provided by investing activities | 1,091 | 863 | |||||||
Cash flows from financing activities: | |||||||||
Net proceeds from exercise of stock options | 2,790 | 0 | |||||||
Restricted stock repurchase | (422 | ) | 0 | ||||||
Cash proceeds from Bank on prior year tax receivable | 0 | 928 | |||||||
Net cash provided by financing activities | 2,368 | 928 | |||||||
Net increase in cash | 2,871 | 1,476 | |||||||
Cash, beginning of year | 1,477 | 1 | |||||||
Cash, end of year | $ | 4,348 | $ | 1,477 | |||||
Supplemental disclosures of cash flow information: | |||||||||
Cash paid during the period for interest | $ | 281 | $ | 204 | |||||
Cash paid during the period for taxes | $ | 1 | $ | 1 | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of Financial Statement Presentation | ' | |||
Basis of Financial Statement Presentation | ||||
The consolidated financial statements include the accounts of the Company and the Bank. Significant intercompany items have been eliminated in consolidation. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. | ||||
CU Bancorp is the common shareholder of Premier Commercial Statutory Trust I, Premier Commercial Statutory Trust II, and Premier Commercial Statutory Trust III, entities which were acquired in the merger with Premier Commercial Bancorp (“PC Bancorp”). These trusts were established for the sole purpose of issuing trust preferred securities and do not meet the criteria for consolidation. For more detail, see Note 13 – Borrowings and Subordinated Debentures. | ||||
Use of Estimates in the Preparation of Financial Statements | ' | |||
Use of Estimates in the Preparation of Financial Statements | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In addition, these accounting principles require the disclosure of contingent assets and liabilities as of the date of the financial statements. | ||||
Estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan loss and various assets and liabilities measured at fair value. While management uses the most current available information to recognize losses on loans, future additions to the allowance for loan loss may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan loss. Regulatory agencies may require the Company to recognize additions to the allowance for loan loss based on their judgment about information available to them at the time of their examination. | ||||
Business Segments | ' | |||
Business Segments | ||||
The Company is organized and operated as a single reporting segment, principally engaged in commercial business banking. The Company conducts its lending and deposit operations through eight full service branch offices located in Los Angeles, Orange, and Ventura counties. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
Within the Consolidated Statements of Cash Flows, cash and cash equivalents include cash, due from banks and interest earning deposits in other financial institutions. Cash flows from loans, deposits, securities sold under agreements to repurchase and certificates of deposit in other financial institutions are reported on a net basis. | ||||
Restricted Cash | ' | |||
Restricted Cash | ||||
Banking regulations require that all banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. Reserve balances of $1,129,000 and $1,960,000 were required by the Federal Reserve Bank of San Francisco as of December 31, 2013 and 2012, respectively. As of December 31, 2013, the Bank was in compliance with all known Federal Reserve Bank reporting and reserve requirements. At December 31, 2013 and 2012 respectively, the Company had $4.3 million and $5.1 million pledged as collateral for its interest rate swap agreement with Pacific Coast Bankers Bank “PCBB”. | ||||
Interest Earning Deposits in Other Financial Institutions | ' | |||
Interest Earning Deposits in Other Financial Institutions | ||||
Interest earning deposits in other financial institutions represent short term interest earning deposits, which include money market deposit accounts with other financial institutions, including interest earning deposits with the U.S. Federal Reserve Bank “Federal Reserve”. These deposits and investments can generally provide the Company with immediate liquidity and generally can be liquidated the same day as is the case with the Federal Reserve and up to seven days on money market deposit accounts with other financial institutions. | ||||
Certificates of Deposit in Other Financial Institutions | ' | |||
Certificates of Deposit in Other Financial Institutions | ||||
The Company’s investments in certificates of deposit issued by other financial institutions are generally fully insured by the FDIC up to the applicable limit of $250,000 and have original maturity of between 30 days and 12 months. The current remaining maturities of the Company’s certificates of deposit at December 31, 2013 range from 4 days to 12 months with a weighted average maturity of 5.2 months and a weighted average yield of 0.50%. | ||||
Concentrations and Credit Risk | ' | |||
Concentrations and Credit Risk in Other Financial Institutions | ||||
The Company maintains certain deposits in other financial institutions in amounts that exceed federal deposit insurance coverage. At December 31, 2013, the amount of deposits in other financial institutions that the Company did not maintain with either the Federal Reserve Bank or the Federal Home Loan Bank and were not covered by FDIC insurance was $20.1 million in non-interest bearing accounts, $14.5 million in interest bearing accounts, and $4.3 million in certificates of deposit in other financial institutions. Based on management’s evaluation of the credit risk of maintaining balances and transactions with these correspondent financial institutions, management does not believe that the Company is exposed to any significant credit risk on these balances. | ||||
Investment Securities | ' | |||
Investment Securities | ||||
The Company classifies its investment securities as available-for-sale. Under the available-for-sale classification securities can be sold in response to certain conditions, such as changes in interest rates, fluctuations in deposit levels or loan demand or need to restructure the portfolio to better match the maturity or interest rate characteristics of liabilities with assets. Securities classified as available-for-sale are accounted for at their current fair value rather than amortized historical cost. Unrealized gains or losses are excluded from net income and reported as a separate component of accumulated other comprehensive income (loss) included in shareholders’ equity. | ||||
As of each reporting date, the Company evaluates the securities portfolio to determine if there has been an other-than-temporary impairment (“OTTI”) on each of the individual securities in the investment securities portfolio. If it is probable that the Company will be unable to collect all amounts due according to the contractual terms of a debt security not impaired at acquisition, an OTTI shall be considered to have occurred. Once an OTTI is considered to have occurred, the credit portion of the loss is required to be recognized in current earnings, while the non-credit portion of the loss is recorded as a separate component of shareholders’ equity. | ||||
In estimating whether an other-than-temporary impairment loss has occurred, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the current liquidity and volatility of the market for each of the individual security categories, (iv) the current slope and shape of the Treasury yield curve, along with where the economy is in the current interest rate cycle, (v) the current spread between Treasuries and the specific security categories, and the spread differential between the current spread and the long-term average spread for that security category, (vi) the projected cash flows from the specific security type, (vii) the financial guarantee and financial rating of the issuer and (viii) the intent and ability of the Company to retain its investment in the issue for a period of time sufficient to allow for any anticipated recovery in fair value. | ||||
If it’s determined that an other-than-temporary impairment exists on a debt security, the Company then determines if (a) it intends to sell the security or (b) it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of the conditions is met, the Company will recognize an other-than-temporary impairment in earnings equal to the difference between the security’s fair value and its adjusted cost basis. If neither of the conditions is met, the Company determines (a) the amount of the impairment related to credit loss and (b) the amount of the impairment due to all other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost basis is the credit loss. The credit loss is the portion of the other-than-temporary impairment that is recognized in earnings and is a reduction to the cost basis of the security. The portion of total impairment related to all other factors is included in other comprehensive income. Significant judgment is required in this analysis that includes, but is not limited to assumptions regarding the collectability of principal and interest, future default rates, future prepayment speeds, the amount of current delinquencies that will result in defaults and the amount of eventual recoveries expected on these defaulted loans through the foreclosure process. | ||||
Realized gains and losses on sales of securities are recognized in earnings at the time of sale and are determined on a specific-identification basis. Purchase premiums and discounts are recognized in interest income using the interest method over the expected maturity term of the securities. For mortgage-backed securities, the amortization or accretion is based on estimated average lives of the securities. The lives of these securities can fluctuate based on the amount of prepayments received on the underlying collateral of the securities. | ||||
Federal Home Loan Bank Stock | ' | |||
Federal Home Loan Bank Stock | ||||
As a member of the Federal Home Loan Bank of San Francisco (FHLB), the Bank is required to maintain an investment in capital stock of the FHLB. The stock does not have a readily determinable fair value and as such is carried at cost and evaluated for impairment. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the changes in (increases or declines) in the net assets of the FHLB as compared to the capital stock amount and the length of time these changes (situation) has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. | ||||
The Federal Home Loan Bank of San Francisco has reported earnings for the years ended December 31, 2013, 2012, and 2011, and remains in compliance with its regulatory capital and liquidity requirements and has declared and paid dividends on its stock in 2013, 2012 and 2011. In addition, the FHLB made capital stock redemptions in 2013, 2012 and 2011. See Note 5 – Investment Securities, Investments in FHLB Common Stock. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2013, 2012 or 2011. | ||||
The Company’s investment in FHLB stock is included in other assets on the accompanying balance sheets. | ||||
Loans and Interest and Fees on Loans | ' | |||
Loans and Interest and Fees on Loans | ||||
The Company extends commercial, SBA, commercial real estate, construction and personal loans to business principals and entrepreneurs, to small and medium-sized businesses, to non-profit organizations, to the professional community, including attorneys, certified public accountants, financial advisors, healthcare providers, and to investors. Loans that the Company has the ability and intent to hold until maturity are stated at their outstanding unpaid principal balances, net of deferred loan fees, unearned discounts, fair value credit valuation allowance and net of the allowance for loan loss. The Company recognizes loan origination fees to the extent they represent reimbursement for initial direct costs, as income at the time of loan boarding. The excess of fees over costs, if any, is deferred and recognized in interest income using the level yield method. | ||||
Interest on loans is accrued daily and credited to income based on the principal amount outstanding. Interest is calculated using the terms of the loan according to the contractual note agreements. A small number of loans have been identified and designated as hedged items by the Company. For a detailed discussion of the accounting related to the loans designated as hedged items, see Note 1 – Summary of Significant Accounting Policies under “Derivative Financial Instruments and Hedging Activity.” | ||||
Nonaccrual loans: For all loan types, when a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. Generally, the Company places loans in a nonaccrual status and the accrual of interest on loans is discontinued when the loan has become delinquent by more than 90 days or when management determines that the full repayment of principal and collection of interest is unlikely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent, if the loan is well secured by collateral and in the process of collection. | ||||
When a loan is placed on nonaccrual status or has been charged-off, all interest income that has been accrued but not yet collected, is reversed against interest income. Subsequent payments received from the customer are applied to principal and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. | ||||
Impaired loans: A loan is identified as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the original loan agreement. Generally, these loans are rated substandard or worse. Most impaired loans are classified as nonaccrual. However, there are some loans that are designated impaired due to doubt regarding collectability according to contractual terms, but are both fully secured by collateral and are current in their interest and principal payments. These impaired loans that are not classified as nonaccrual continue to pay as agreed. Impaired loans are measured for reserve requirements based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are charged against the allowance for loan loss. Factors that contribute to a performing loan being classified as impaired include payment status, collateral value, probability of collecting scheduled payments, delinquent taxes, and debts to other lenders that cannot be serviced out of existing cash flow. | ||||
Troubled debt restructurings: A loan is classified as a troubled debt restructuring when a borrower experiences financial difficulties that lead to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. The loan terms which have been modified or restructured due to a borrower’s financial difficulty may include a reduction in the stated interest rate, an extension of the maturity at an interest rate below current market interest rates, a reduction in the face amount of the debt (principal forgiveness), a reduction in the accrued interest, or re-aging, extensions, deferrals, renewals, rewrites and other actions intended to minimize potential losses. | ||||
Troubled debt restructurings are considered impaired loans and are evaluated for the amount of impairment, with the appropriate allowance for loan loss. | ||||
In determining whether a debtor is experiencing financial difficulties, the Company considers if the debtor is in payment default or would be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor’s entity-specific projected cash flows will not be sufficient to service its debt, or the debtor cannot obtain funds from sources other than the existing creditors at a market rate for debt with similar risk characteristics. | ||||
In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the debtor will serve as adequate compensation for other terms of the restructuring, and whether the debtor otherwise has access to funds at a market rate for debt with similar risk characteristics. | ||||
A loan that is modified at a market rate of interest will not be classified as troubled debt restructuring in the calendar year subsequent to the restructuring if it is in compliance with the modified terms and the expectation exists for continued performance going forward. Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms. This may result in the loan being returned to accrual at the time of restructuring. The Company generally requires a period of sustained repayment for at least six months for return to accrual status. | ||||
Loans Held for Sale and Servicing Assets | ' | |||
Loans Held for Sale and Servicing Assets | ||||
Loans held for sale are loans originated by the Company and include the principal amount outstanding net of unearned income and the loans 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 is taken into earnings when they are sold. At December 31, 2013 and 2012, the Company had no loans classified as held for sale. | ||||
Gains or losses resulting from sales of loans 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 less 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. | ||||
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 the estimated future net servicing income. The amortization of the servicing asset and the servicing income are included in noninterest income. The fair value of the servicing assets is estimated by discounting the future cash flows using market-based discount rates and prepayment speeds. The Company’s servicing asset is evaluated regularly for impairment. The servicing asset is stratified based on the original term to maturity and the year of origination of the underlying loans for purposes of measuring impairment. If the fair value of the servicing asset is less than the amortized carrying value, the asset is considered to be impaired and an impairment charge will be taken against earnings. The servicing asset is included in other assets on the consolidated balance sheets. | ||||
Allowance for Loan Loss | ' | |||
Allowance for Loan Loss | ||||
The allowance for loan loss (“Allowance”) is established by a provision for loan losses that is charged against income, increased by charges to expense and decreased by charge-offs (net of recoveries). Loan charge-offs are charged against the Allowance when management believes the collectability of loan principal becomes unlikely. Subsequent recoveries, if any, are credited to the Allowance. | ||||
The Allowance is an amount that management believes will be adequate to absorb estimated charge-offs related to specifically identified loans, as well as probable loan charge-offs inherent in the balance of the loan portfolio, based on an evaluation of the collectability of existing loans and prior loss experience. Management carefully monitors changing economic conditions, the concentrations of loan categories and collateral, the financial condition of the borrowers, the history of the loan portfolio, as well as historical peer group loan loss data to determine the adequacy of the Allowance. The Allowance is based upon estimates, and actual charge-offs may vary from the estimates. No assurance can be given that adverse future economic conditions will not lead to delinquent loans, increases in the provision for loan losses and/or charge- offs. These evaluations are inherently subjective, as they require estimates that are susceptible to significant revisions as conditions change. In addition, regulatory agencies, as an integral part of their examination process, may require additions to the Allowance based on their judgment about information available at the time of their examinations. Management believes that the Allowance as of December 31, 2013 is adequate to absorb known and probable losses in the loan portfolio. | ||||
The Allowance consists of specific and general components. The specific component relates to loans that are categorized as impaired. For loans that are categorized as impaired, a specific reserve is established when the fair value of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on the type of loan and historical charge-off experience adjusted for qualitative factors. | ||||
While the general allowance covers all non-impaired loans and is based on historical loss experience adjusted for the various qualitative factors as discussed in Note 6—Loans, the change in the Allowance from one reporting period to the next may not directly correlate to the rate of change of nonperforming loans for the following reasons: | ||||
• | A loan moving from the impaired performing status to an impaired non-performing status does not mandate an automatic increase in reserves. The individual loan is evaluated for a specific reserve requirement when the loan moves to the impaired status, not when the loan moves to non-performing status. In addition, the impaired loan is reevaluated at each subsequent reporting period. Impaired loans are evaluated by comparing the fair value of the collateral less costs to sell, 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. | |||
• | Not all impaired loans require a specific reserve. The payment performance of the borrower may require an impaired classification, but the collateral evaluation may support adequate collateral coverage. For a number of impaired loans in which borrower performance is in question, the collateral coverage may be sufficient because a partial charge off of the loan has been taken. In those instances, neither a general reserve nor a specific reserve is assessed. | |||
Premises and Equipment | ' | |||
Premises and Equipment | ||||
Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which range from three to ten years for furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the remaining lease term, whichever is shorter. Expenditures for improvements or major repairs are capitalized and those for ordinary repairs and maintenance are charged to operations as incurred. | ||||
Other Real Estate Owned | ' | |||
Other Real Estate Owned | ||||
Real estate properties that are acquired through, or in lieu of, loan foreclosure are initially recorded at fair value, less estimated costs to sell, at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of the cost basis or fair value less estimated costs to sell. Revenue and expenses from operations and additions to the valuation allowance are included in other expenses. | ||||
Goodwill and Other Intangible Assets | ' | |||
Goodwill and Other Intangible Assets | ||||
Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination determined to have an indefinite useful life are not amortized, but tested for impairment at least annually, or more frequently if events and circumstances exist that indicate that an impairment test should be performed. The Company has selected October 1st as the date to perform its annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Company’s balance sheet. There was no impairment as of December 31, 2013. The increase in goodwill in 2012 was solely the result of the acquisition of PC Bancorp. For more discussion, see Note 2 – Business Combinations. | ||||
Core deposit intangible assets arising from business combinations are amortized using an accelerated method over their estimated useful lives and are classified under core deposit and leasehold right intangibles on the Company’s balance sheet. | ||||
Leasehold right intangible is the difference in the fair value of an acquired lease and the amount of payments required to be made under the lease obligation. The leasehold intangible asset is amortized to expense over the life of the lease and is classified under core deposit and leasehold right intangibles on the Company’s balance sheet. | ||||
Qualified Affordable Housing Project Investments | ' | |||
Qualified Affordable Housing Project Investments | ||||
The Company has made investments in qualified affordable housing projects that are defined within the industry and here as investments in Low Income Housing Tax Credits “LIHTC”. The investment in LIHTC provides the Company with tax credits and tax benefits which are designed to encourage investments in the construction and rehabilitation of low-income housing. The Company’s investments are made to limited partnerships that manage or invest in qualified affordable housing projects primarily to receive both tax credits and benefits in addition to CRA credits. In December 2013, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). See “Recent Accounting Pronouncements” contained in Note 1 – Summary of Significant Accounting Policies for an overview of this accounting standard. ASU 2014-1 modifies the conditions that a reporting entity must meet to be eligible to use a method other than the equity or cost method to account for qualified affordable housing project investments. If the modified conditions are met, the amendments permit an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense (benefit). The four conditions that must be met to utilize the proportional amortization method are: (a) it is probable that the tax credits allocable to the investor will be available, (b) the investor does not have the ability to exercise significant influence over the operating and financial policies of the limited partnership, and substantially all of the projected benefits are from tax credits and tax benefits, (c) the investor’s projected yield based solely on the cash flows from the tax credits and tax benefits is positive and (d) the investor is a limited liability investor in the limited partnership for both legal and tax purposes, and the investor is limited to its capital investment. The Company believes that all the above conditions are met to qualify the Company to account for its investments in LIHTC under ASU 2014-1. In addition, the Company is required to evaluate its investments in LIHTC for impairment, when there are events or changes in circumstances indicating it is more likely than not that the carrying amount of the Company’s investment would not be realized either through the receipt of tax credits and tax benefits or through a sale. Management does not believe there is any impairment of its LIHTC investments at December 31, 2013. Further, ASU 2014-1 introduces new recurring disclosures about investments in qualified affordable housing projects irrespective of the method used to account for the investments. See Note 11 – Investments in Qualified Affordable Housing Projects for details on the Company’s investments in LIHTC’s. | ||||
Transfers of Financial Assets | ' | |||
Transfers of Financial Assets | ||||
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | ||||
Derivative Financial Instruments and Hedging Activities | ' | |||
Derivative Financial Instruments and Hedging Activities | ||||
At December 31, 2013 and 2012, all derivative instruments (interest rate swap contracts) were recognized on the consolidated balance sheet at their current fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and hedged item related to the hedged risk are recognized in earnings. ASC Topic 815 establishes the accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. ASC Topic 815 requires that changes in the derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Accounting for qualifying hedges allows a derivative’s gains and losses to offset related results on the hedged item in the income statement, and requires that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. | ||||
The Company acquired twenty-four interest rate swap contracts as part of its merger with PC Bancorp. From the acquisition date through September 30, 2012, (two months), these swap contracts were not designated as hedges and all changes in the fair value of the interest rate swap contracts were recognized in earnings and were included in other non-interest income. Effective October 1, 2012, twenty-one of the interest rate swap contracts were re-designated as fair value hedges by the Company with changes in the fair value of the swap contracts and changes in the fair value of the hedged items attributable to the hedged risk being recorded in net interest income. Two of the PC Bancorp fair value hedges and the one cash flow hedge were not re-designated as hedges by the Company with the changes in the fair value of these swap contacts being recorded as other non-interest income. See Note 14 – Derivative Financial Instruments regarding the details and impact of financial derivatives on the Company’s financial condition and results of operations. | ||||
On the date a derivative contract is entered into by the Company, the Company will designate the derivative contract as either a fair value hedge (i.e. a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e. a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a stand-alone derivative (i.e. and instrument with no hedging designation). For a derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income and are recognized in the income statement when the hedged item affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as other non-interest income. | ||||
The Company, as part of its acquisition of PC Bancorp, had to formally document all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for re-designating the interest rate swap contract as a hedge transaction. This process included linking all derivatives that were designated as fair value hedges to specific assets on the balance sheet. The Company also had to formally assess the hedge’s current effectiveness in offsetting changes in the fair values of the hedged items. On an ongoing basis, the derivatives that are used in hedging transactions are evaluated as to how effective they are in offsetting changes in fair values or cash flows of hedged items. | ||||
The Company will discontinue hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting change in the fair value of the hedged item, the derivative expires or is sold, is terminated, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued, the Company will continue to carry the derivative on the balance sheet at its fair value (if applicable), but will no longer adjust the hedged asset or liability for changes in fair value. The adjustments of the carrying amount of the hedged asset or liability will be accounted for in the same manner as other components of the carrying amount of that asset or liability, and the adjustments are amortized to interest income over the remaining life of the hedged item upon the termination of hedge accounting. | ||||
Income Taxes and Other Taxes | ' | |||
Income Taxes and Other Taxes | ||||
Deferred income tax assets and liabilities are computed using the asset and liability method, which recognizes a liability or asset representing the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. A valuation allowance is established to the extent necessary to reduce the deferred tax asset to the level at which it is “more likely than not” that the tax assets or benefits will be realized. Realization of tax benefits for deductible temporary differences and operating loss carryforwards depends on having sufficient taxable income of an appropriate character within the carryforward period and that current tax law will allow for the realization of those tax benefits. | ||||
The Company is required to account for uncertainty associated with the tax positions it has taken or expects to be taken on past, current and future tax returns. Where there may be a degree of uncertainty as to the tax deductibility of an item, the Company may only record the tax effects (expense or benefits) from an uncertain tax position in the financial statements if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. The Company does not believe that it has any material uncertain tax positions taken to date that are not more likely than not to be realized. The Company’s federal income tax returns for the years ended December 31, 2010 through 2012 are open for examination by federal taxing authorities and the Company’s state income tax returns for the years ended December 2009 through 2012 are open for examination by state taxing authorities. The Company’s federal tax returns for the year ended December 31, 2009 were examined by the IRS in 2011. This examination was completed with two adjustments made to the Company’s federally filed 2009 tax return which impacted the Company’s current and deferred tax assets in 2011. The amount of interest and penalties associated with the IRS audit of the Bank’s 2009 tax return was expensed in 2011 and was not considered material to the financial statements. | ||||
The Company was notified by the Franchise Tax Board during the fourth quarter of 2013 that an examination of the State of California Enterprise Zone net interest deduction that the Company took in its 2011 and 2012 tax returns is under review. The Franchise Tax Board has requested and the Company has supplied information related to the composition and calculation of the net interest deduction taken by the Company in 2011 and 2012. The Franchise Tax board has not yet notified the Company of their findings at this time. | ||||
The Company has not been notified of any other pending tax examinations by taxing authorities. | ||||
The Company’s consolidated effective statutory federal and state income tax rate is approximately 41%. The actual effective rate reflected within these financial statements is dependent on the composition of taxable earnings in the period. A number of expenses such as certain merger related expenses, certain business and entertainment expenses, country club dues, etc. are not allowable as an expense for either federal or state purposes and are classified as permanent tax-to-book taxable income differences. In addition, the Company has several items included in income, that are excluded from taxable income, such as the net interest income on loans within the State of California Enterprise Zone designated areas for state income taxes and the increase in cash surrender value of bank owned life insurance policies. Because of these differences, the Company’s effective tax may vary considerably between reporting years. During 2012, due to the inclusion of significant merger related costs, the Company had an effective tax rate in excess of its statutory rate. In 2013, the Company invested $1.1 million in Community Redevelopment Act “CRA” 60 month term, 0% interest rate deposits that made the Company eligible for a $215,000 Qualified Investment Tax Credit, which was received in the third quarter of 2013. The Company has invested in Qualified Affordable Housing Projects (“LIHTC”) that generate tax credits and benefits for the Company. See Note 1 and Note 11 – Investments in Qualified Affordable Housing Projects. The Company’s consolidated effective tax rate for the year ended December 31, 2013 is below the statutory rate. See the income tax rate reconciliation in Note 19 – Income Taxes. | ||||
Based on legislation enacted during the second quarter of 2013, the California State Legislature has repealed the net interest deduction on interest income for loans within the designated State of California Enterprise Zones. The effective date of this legislation is January 1, 2014. As a result, the Company will lose the net interest deduction when calculating its state income tax provision, which will increase the effective state tax rate for 2014. | ||||
Comprehensive Income | ' | |||
Comprehensive Income | ||||
The Company has adopted accounting guidance issued by the Financial Accounting Standards Board (“FASB”) that requires all items recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. This also requires that an entity classify items of other comprehensive income by their nature in an annual financial statement. Other comprehensive income includes unrealized gains and losses, net of tax, on marketable securities classified as available-for-sale. | ||||
Earnings Per Share (EPS) | ' | |||
Earnings per Share (EPS) | ||||
Basic earnings per share is calculated by dividing net income by the weighted shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the dilutive effect of potential common stock using the treasury stock method only if the effect on earnings per share is dilutive. See Note 4 – Computation of Earnings per Common Share. | ||||
Recent Accounting Pronouncements | ' | |||
Recent Accounting Pronouncements | ||||
In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This update amends ASU 2011-11, Balance Sheet (Topic 210): Disclosures about offsetting Assets and Liabilities. The amendment clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The amendments are effective for fiscal and interim periods beginning on or after January 1, 2013. The adoption of this ASU did not have an impact on the Company’s financial position or results of operations. The additional disclosures required under this ASU are reflected in Note 15 – Balance Sheet Offsetting. | ||||
In February 2013, the FASB issued ASU No. 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 (issued in June 2011) and 2011-12 (issued in December 2011). These amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. These amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted the original ASU in the first quarter of 2013. The additional disclosures required under this ASU are reflected in Note 21 – Other Comprehensive Income (Loss). | ||||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. The amendments in this update provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. This guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU also requires an entity to disclose the nature and amount of the obligation, as well as other information about those obligations. The amendments are effective upon issuance. The adoption of this ASU did not have an impact on the Company’s financial position or results of operations. | ||||
In July 2013, the FASB issued ASU No. 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this update permit the Fed Funds Effective Swap Rate (“OIS”) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to Treasury obligations of the U.S. government (“UST”) and the London Interbank Offered Rate (“LIBOR”). The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate under Topic 815. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company has not entered into any new derivative or hedging transactions, nor has the Company had to redesignate any existing hedging transaction relationships since the effective date of July 17, 2013. As a result, the adoption of this ASU did not have an impact on the Company’s financial position or results of operations. | ||||
In July 2013, the FASB issued ASU No. 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. The amendments in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The amendments do not require new recurring disclosures but they are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this update are effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this ASU is not expected to have an impact on the Company’s financial position or results of operations. | ||||
In January 2014, the FASB issued ASU No. 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). ASU 2014-01 modifies the conditions that a reporting entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. If the modified conditions are met, the amendments permit an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense (benefit). Additionally, ASU 2014-1 introduces new recurring disclosures about all investments in qualified affordable housing projects irrespective of the method used to account for the investments. Prior to these amendments, a reporting entity that invests in qualified affordable housing projects may elect to account for that investment using the level yield method if specific conditions are met. For investments that are not accounted for using the effective yield method, the investment must be accounted for under either the equity method or the cost method. Because the conditions which allow an entity to utilize the effective yield method were overly restrictive, this prevented many investors from using the effective yield method. Under the effective yield method, all tax credits, tax benefits, and the writedown of the investments are accounted for net of taxes as a component of income tax expense (benefit). This method more fairly represents the economics of the transaction than accounting under the equity method or cost method. The amendments in ASU 2014-01 are expected to enable more entities to qualify for the proportional amortization method to account for affordable housing project investments than the number of entities that currently qualify for the effective yield method. The amendments are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. For all entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2014, and interim periods within annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company early adopted ASU 2014-01 in the fourth quarter of 2013. See Note 11 – Investments in Qualified Affordable Housing Projects for the Company’s disclosures on its investments in LIHTC projects required under ASU 2014-01. |
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Fair Values of Assets Acquired and Liabilities Assumed as of Date of Acquisition | ' | ||||||||
The following supplemental information is a condensed balance sheet showing the fair values of the assets acquired and the liabilities assumed as of the date of the acquisition related to the PC Bancorp merger (dollars in thousands): | |||||||||
Assets Acquired and Liabilities Assumed | July 31, | ||||||||
from Premier Commercial Bancorp | 2012 | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 42,172 | |||||||
Certificates of deposit in other financial institutions | 4,711 | ||||||||
Investment securities available-for-sale | 44,404 | ||||||||
Loans | 277,994 | ||||||||
Premises and equipment, net | 276 | ||||||||
Deferred tax asset | 7,163 | ||||||||
Goodwill | 6,137 | ||||||||
Core deposit intangible | 1,005 | ||||||||
Bank owned life insurance | 3,665 | ||||||||
Accrued interest receivable and other assets | 9,503 | ||||||||
Total Assets | 397,030 | ||||||||
Liabilities: | |||||||||
Deposits | 334,084 | ||||||||
Subordinated debentures | 9,075 | ||||||||
Accrued interest payable and other liabilities | 11,549 | ||||||||
Total Liabilities | 354,708 | ||||||||
Total Purchase Price | $ | 42,322 | |||||||
Cash and cash equivalents | $ | 42,172 | |||||||
Stock option payout to PC Bancorp employees and Directors | (455 | ) | |||||||
Fractional shares payout | (1 | ) | |||||||
Cash and cash equivalents acquired, net of cash paid | $ | 41,716 | |||||||
Supplemental Pro Forma Financial Information | ' | ||||||||
The 2011 pro forma net income includes non-recurring merger expenses related to the PC Bancorp merger for legal, accounting, and other professional fees, net of tax, totaling approximately $183,000. (dollars in thousands, except per share data) | |||||||||
Supplemental Proforma Financial Data | Twelve Months Ended | ||||||||
December 31, | |||||||||
PC Bancorp Acquisition | 2012 | 2011 | |||||||
Net Interest Income | $ | 42,939 | $ | 41,529 | |||||
Net Income | $ | 2,281 | $ | 2,787 | |||||
Diluted earnings per share | $ | 0.21 | $ | 0.27 |
Computation_of_Book_Value_and_1
Computation of Book Value and Tangible Book Value per Common Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Computation of Book Value and Tangible Book Value per Common Share | ' | ||||||||
The tables below present the computation of book value and tangible book value per common share as of the dates indicated (dollars in thousands, except per share data): | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Total Shareholders’ Equity | $ | 137,924 | $ | 125,623 | |||||
Less: Goodwill | 12,292 | 12,292 | |||||||
Less: Core deposit and leasehold right intangibles | 2,525 | 1,747 | |||||||
Tangible Shareholders’ Equity | $ | 123,107 | $ | 111,584 | |||||
Common shares issued and outstanding | 11,081,364 | 10,758,674 | |||||||
Book value per common share | $ | 12.45 | $ | 11.68 | |||||
Tangible book value per common share | $ | 11.11 | $ | 10.37 | |||||
Computation_of_Earnings_per_Co1
Computation of Earnings per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Basic and Diluted Earnings per Common Share Computations | ' | ||||||||||||
The following table shows weighted average basic shares outstanding, potential dilutive shares related to stock options, unvested restricted stock, and weighted average diluted shares for each of the periods indicated (dollars in thousands, except per share data): | |||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Income | $ | 9,785 | $ | 1,727 | $ | 1,467 | |||||||
Weighted average basic common shares outstanding | 10,567,436 | 8,283,599 | 6,460,104 | ||||||||||
Dilutive effect of potential common share issuances from stock options and restricted stock | 269,425 | 127,150 | 175,758 | ||||||||||
Weighted average diluted common shares outstanding | 10,836,861 | 8,410,749 | 6,635,862 | ||||||||||
Income per common share | |||||||||||||
Basic | $ | 0.93 | $ | 0.21 | $ | 0.23 | |||||||
Diluted | $ | 0.9 | $ | 0.21 | $ | 0.22 | |||||||
Anti-dilutive shares not included in the calculation of diluted earnings per share | 81,000 | 245,833 | 247,083 | ||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Amortized Cost and Estimated Fair Values of Investment Securities | ' | ||||||||||||||||||||||||
The following tables present the amortized cost and estimated fair values of investment securities by major category as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||||||
December 31, 2013 – Available-for-sale: | Amortized | Gains | Losses | Net | Estimated | ||||||||||||||||||||
Cost | Non-credit | Fair Value | |||||||||||||||||||||||
Gains on | |||||||||||||||||||||||||
Other–than- | |||||||||||||||||||||||||
temporarily | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
U.S. Govt Agency and Sponsored Agency—Note Securities | $ | 4,153 | $ | 1 | $ | 2 | $ | 0 | $ | 4,152 | |||||||||||||||
U.S. Govt Agency—SBA Securities | 50,521 | 875 | 491 | 0 | 50,905 | ||||||||||||||||||||
U.S. Govt Agency—GNMA Mortgage-Backed Securities | 28,107 | 180 | 909 | 0 | 27,378 | ||||||||||||||||||||
U.S. Govt Sponsored Agency—CMO & Mortgage-Backed Securities | 15,348 | 345 | 479 | 0 | 15,214 | ||||||||||||||||||||
Corporate Securities | 5,086 | 125 | 0 | 0 | 5,211 | ||||||||||||||||||||
Municipal Securities | 3,621 | 9 | 2 | 0 | 3,628 | ||||||||||||||||||||
Total investment securities | $ | 106,836 | $ | 1,535 | $ | 1,883 | $ | 0 | $ | 106,488 | |||||||||||||||
Gross Unrealized | |||||||||||||||||||||||||
December 31, 2012 – Available-for-sale: | Amortized | Gains | Losses | Net | Estimated | ||||||||||||||||||||
Cost | Non-credit | Fair Value | |||||||||||||||||||||||
Gains on | |||||||||||||||||||||||||
Other–than- | |||||||||||||||||||||||||
temporarily | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
U.S. Govt Agency and Sponsored Agency—Note Securities | $ | 18,888 | $ | 24 | $ | 1 | $ | 0 | $ | 18,911 | |||||||||||||||
U.S. Govt Agency—SBA Securities | 42,308 | 703 | 32 | 0 | 42,979 | ||||||||||||||||||||
U.S. Govt Agency—GNMA Mortgage-Backed Securities | 22,237 | 728 | 5 | 0 | 22,960 | ||||||||||||||||||||
U.S. Govt Sponsored Agency—CMO & Mortgage-Backed Securities | 12,335 | 696 | 0 | 0 | 13,031 | ||||||||||||||||||||
Corporate Securities | 10,311 | 235 | 0 | 0 | 10,546 | ||||||||||||||||||||
Municipal Securities | 6,831 | 3 | 18 | 0 | 6,816 | ||||||||||||||||||||
Private Issue CMO Securities | 2,874 | 0 | 0 | 36 | 2,910 | ||||||||||||||||||||
Total investment securities | $ | 115,784 | $ | 2,389 | $ | 56 | $ | 36 | $ | 118,153 | |||||||||||||||
Investment Securities with Unrealized Losses that are considered to be Temporarily Impaired or Other than Temporarily Impaired | ' | ||||||||||||||||||||||||
The following tables present investment securities with unrealized losses that are considered to be temporarily-impaired and other-than-temporarily impaired, summarized and classified according to the duration of the loss period as of the dates indicated (dollars in thousands). | |||||||||||||||||||||||||
< 12 Continuous | > 12 Continuous | Total | |||||||||||||||||||||||
Months | Months | ||||||||||||||||||||||||
Fair | Net | Fair | Net | Fair | Net | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Temporarily-impaired available-for-sale investment securities: | |||||||||||||||||||||||||
U.S. Govt.—Agency and Sponsored Agency Note Securities | $ | 1,041 | $ | 2 | $ | 0 | $ | 0 | $ | 1,041 | $ | 2 | |||||||||||||
U.S. Govt. Agency—SBA Securities | 11,686 | 491 | 0 | 0 | 11,686 | 491 | |||||||||||||||||||
U.S. Govt. Agency – GNMA Mortgage-Backed Securities | 15,693 | 721 | 1,864 | 188 | 17,557 | 909 | |||||||||||||||||||
U.S. Govt. Sponsored Agency CMO & Mortgage-Backed Securities | 7,650 | 479 | 0 | 0 | 7,650 | 479 | |||||||||||||||||||
Municipal Securities | 0 | 0 | 1,029 | 2 | 1,029 | 2 | |||||||||||||||||||
Total temporarily-impaired available-for-sale investment securities | $ | 36,070 | $ | 1,693 | $ | 2,893 | $ | 190 | $ | 38,963 | $ | 1,883 | |||||||||||||
< 12 Continuous | > 12 Continuous | Total | |||||||||||||||||||||||
Months | Months | ||||||||||||||||||||||||
Fair | Net | Fair | Net | Fair | Net | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Temporarily-impaired available-for-sale investment securities: | |||||||||||||||||||||||||
U.S. Govt.—Agency and Sponsored Agency Note Securities | $ | 2,209 | $ | 1 | $ | 0 | $ | 0 | $ | 2,209 | $ | 1 | |||||||||||||
U.S. Govt. Agency SBA Securities | 5,124 | 32 | 0 | 0 | 5,124 | 32 | |||||||||||||||||||
U.S. Govt. Sponsored Agency CMO & Mortgage-Backed Securities | 2,126 | 5 | 0 | 0 | 2,126 | 5 | |||||||||||||||||||
Municipal Securities | 6,293 | 18 | 0 | 0 | 6,293 | 18 | |||||||||||||||||||
Total temporarily-impaired available-for-sale investment securities | $ | 15,752 | $ | 56 | $ | 0 | $ | 0 | $ | 15,752 | $ | 56 | |||||||||||||
Other-than-temporarily impaired available-for-sale investment securities: | |||||||||||||||||||||||||
Private Issue CMO Securities | 0 | 0 | 1,235 | 65 | 1,235 | 65 | |||||||||||||||||||
Total temporarily-impaired and other-than-temporarily impaired available-for-sale investment securities | $ | 15,752 | $ | 56 | $ | 1,235 | $ | 65 | $ | 16,987 | $ | 121 | |||||||||||||
Maturities Schedule of Securities | ' | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Maturities Schedule of Securities | Amortized | Fair Value | Weighted | ||||||||||||||||||||||
Cost | Average | ||||||||||||||||||||||||
Yield | |||||||||||||||||||||||||
Due through one year | $ | 17,574 | $ | 17,759 | 1.69 | % | |||||||||||||||||||
Due after one year through five years | 37,733 | 38,168 | 2.04 | % | |||||||||||||||||||||
Due after five years through ten years | 25,486 | 24,952 | 2.41 | % | |||||||||||||||||||||
Due after ten years | 26,043 | 25,609 | 2.75 | % | |||||||||||||||||||||
Total | $ | 106,836 | $ | 106,488 | 2.24 | % | |||||||||||||||||||
Summary of Activity Related to Credit Component Recognized in Earnings on Investment Securities Held | ' | ||||||||||||||||||||||||
The following table summarizes activity related to the credit component recognized in earnings on investment securities (Private Issue CMO Securities) held by the Company for which a portion of other-than-temporary impairment was recognized in other comprehensive income (loss) for the dates and periods indicated (dollars in thousands): | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Balance at the beginning of the period, January 1, | $ | 871 | $ | 973 | $ | 914 | |||||||||||||||||||
Credit valuation security impairment charge (gain on sale) and recorded through the Statement of Income | (5 | ) | 155 | 264 | |||||||||||||||||||||
Total cumulative inception to date valuation impairment charge on securities | 866 | 1,128 | 1,178 | ||||||||||||||||||||||
Less actual credit loss recognized from sale of securities | (866 | ) | 0 | 0 | |||||||||||||||||||||
Less actual credit loss recognized on principal | 0 | (257 | ) | (205 | ) | ||||||||||||||||||||
Total credit loss recognized on securities | (866 | ) | (257 | ) | (205 | ) | |||||||||||||||||||
Balance at the end of the period, December 31, | $ | 0 | $ | 871 | $ | 973 | |||||||||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Composition of Loan Portfolio | ' | ||||||||||||||||||||||||||||
The following table presents the composition of the loan portfolio as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Commercial and Industrial Loans: | $ | 299,473 | $ | 262,637 | |||||||||||||||||||||||||
Loans Secured by Real Estate: | |||||||||||||||||||||||||||||
Owner-Occupied Nonresidential Properties | 197,605 | 181,844 | |||||||||||||||||||||||||||
Other Nonresidential Properties | 271,818 | 246,450 | |||||||||||||||||||||||||||
Construction, Land Development and Other Land | 47,074 | 48,528 | |||||||||||||||||||||||||||
1-4 Family Residential Properties | 65,711 | 62,037 | |||||||||||||||||||||||||||
Multifamily Residential Properties | 33,780 | 31,610 | |||||||||||||||||||||||||||
Total Loans Secured by Real Estate | 615,988 | 570,469 | |||||||||||||||||||||||||||
Other Loans: | 17,733 | 21,779 | |||||||||||||||||||||||||||
Total Loans | $ | 933,194 | $ | 854,885 | |||||||||||||||||||||||||
Company's Gross Loans, Stratified by Industry Concentration of Borrower | ' | ||||||||||||||||||||||||||||
The following table is a breakout of the Company’s gross loans stratified by the industry concentration of the borrower by their respective NAICS code as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Real Estate | $ | 381,830 | $ | 312,625 | |||||||||||||||||||||||||
Manufacturing | 83,319 | 77,203 | |||||||||||||||||||||||||||
Hotel/Lodging | 76,143 | 82,483 | |||||||||||||||||||||||||||
Construction | 62,835 | 55,385 | |||||||||||||||||||||||||||
Wholesale | 60,291 | 54,218 | |||||||||||||||||||||||||||
Professional Services | 49,739 | 44,714 | |||||||||||||||||||||||||||
Finance | 46,393 | 59,791 | |||||||||||||||||||||||||||
Healthcare | 38,662 | 41,857 | |||||||||||||||||||||||||||
Restaurant/Food Service | 35,244 | 24,105 | |||||||||||||||||||||||||||
Other Services | 21,448 | 23,239 | |||||||||||||||||||||||||||
Retail | 23,157 | 30,302 | |||||||||||||||||||||||||||
Administrative Management | 15,218 | 19,078 | |||||||||||||||||||||||||||
Information | 11,709 | 4,492 | |||||||||||||||||||||||||||
Education | 10,270 | 4,843 | |||||||||||||||||||||||||||
Transportation | 9,531 | 11,431 | |||||||||||||||||||||||||||
Entertainment | 6,207 | 8,132 | |||||||||||||||||||||||||||
Other | 1,198 | 987 | |||||||||||||||||||||||||||
Total | $ | 933,194 | $ | 854,885 | |||||||||||||||||||||||||
Summary of Activity for Allowance for Loan Loss | ' | ||||||||||||||||||||||||||||
The following is a summary of activity for the allowance for loan loss for the dates and periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Allowance for loan loss at beginning of year | $ | 8,803 | $ | 7,495 | $ | 5,860 | |||||||||||||||||||||||
Provision for loan losses | 2,852 | 1,768 | 1,442 | ||||||||||||||||||||||||||
Net (charge-offs) recoveries: | |||||||||||||||||||||||||||||
Charge-offs | (1,912 | ) | (687 | ) | (593 | ) | |||||||||||||||||||||||
Recoveries | 860 | 227 | 786 | ||||||||||||||||||||||||||
Net (charge-offs) recoveries | (1,052 | ) | (460 | ) | 193 | ||||||||||||||||||||||||
Allowance for loan loss at end of year | $ | 10,603 | $ | 8,803 | $ | 7,495 | |||||||||||||||||||||||
Net (charge-offs) recoveries to average loans | (0.12 | )% | (0.08 | )% | 0.04 | % | |||||||||||||||||||||||
Allowance for loan loss to total loans | 1.14 | % | 1.03 | % | 1.53 | % | |||||||||||||||||||||||
Allowance for loan loss to total loans accounted for at historical cost, which excludes purchased loans acquired by acquisition | 1.5 | % | 1.54 | % | 1.75 | % | |||||||||||||||||||||||
Changes in Allowance for Loan Loss | ' | ||||||||||||||||||||||||||||
The following table presents, by loan portfolio segment, the changes in the allowance for loan loss for the dates and periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial | Construction, | Commercial | Other | Total | |||||||||||||||||||||||||
and | Land | and Other | |||||||||||||||||||||||||||
Industrial | Development | Real Estate | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
Year ended – December 31 2013 | |||||||||||||||||||||||||||||
Allowance for loan loss – Beginning balance | $ | 4,572 | $ | 2,035 | $ | 2,084 | $ | 112 | $ | 8,803 | |||||||||||||||||||
Provision for loan losses | 2,596 | (1,678 | ) | 1,990 | (56 | ) | 2,852 | ||||||||||||||||||||||
Net (charge-offs) recoveries: | |||||||||||||||||||||||||||||
Charge-offs | (1,704 | ) | (0 | ) | (200 | ) | (8 | ) | (1,912 | ) | |||||||||||||||||||
Recoveries | 70 | 763 | 12 | 15 | 860 | ||||||||||||||||||||||||
Total net (charge-offs) recoveries | (1,634 | ) | 763 | (188 | ) | 7 | (1,052 | ) | |||||||||||||||||||||
Ending balance | $ | 5,534 | $ | 1,120 | $ | 3,886 | $ | 63 | $ | 10,603 | |||||||||||||||||||
Commercial | Construction, | Commercial | Other | Total | |||||||||||||||||||||||||
and | Land | and Other | |||||||||||||||||||||||||||
Industrial | Development | Real Estate | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
Year ended – December 31 2012 | |||||||||||||||||||||||||||||
Allowance for loan loss – Beginning balance | $ | 3,541 | $ | 752 | $ | 2,911 | $ | 291 | $ | 7,495 | |||||||||||||||||||
Provision for loan losses | 1,399 | 1,283 | (733 | ) | (181 | ) | 1,768 | ||||||||||||||||||||||
Net (charge-offs) recoveries: | |||||||||||||||||||||||||||||
Charge-offs | (444 | ) | (0 | ) | (233 | ) | (10 | ) | (687 | ) | |||||||||||||||||||
Recoveries | 76 | 0 | 139 | 12 | 227 | ||||||||||||||||||||||||
Total net (charge-offs) recoveries | (368 | ) | 0 | (94 | ) | 2 | (460 | ) | |||||||||||||||||||||
Ending balance | $ | 4,572 | $ | 2,035 | $ | 2,084 | $ | 112 | $ | 8,803 | |||||||||||||||||||
Schedule Represents both Allowance for Loan Loss and Associated Loan Balance Classified by Loan Portfolio Segment and by Credit Evaluation Methodology | ' | ||||||||||||||||||||||||||||
The following table presents both the allowance for loan loss and the associated loan balance classified by loan portfolio segment and by credit evaluation methodology (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial | Construction, | Commercial | Other | Total | |||||||||||||||||||||||||
and | Land | and | |||||||||||||||||||||||||||
Industrial | Development | Other Real | |||||||||||||||||||||||||||
and | Estate | ||||||||||||||||||||||||||||
Other Land | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Allowance for loan loss: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4 | $ | 0 | $ | 0 | $ | 0 | $ | 4 | |||||||||||||||||||
Collectively evaluated for impairment | 5,520 | 1,120 | 3,886 | 63 | 10,589 | ||||||||||||||||||||||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 10 | 0 | 0 | 0 | 10 | ||||||||||||||||||||||||
Total Allowance for Loan Loss | $ | 5,534 | $ | 1,120 | $ | 3,886 | $ | 63 | $ | 10,603 | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,640 | $ | 0 | $ | 3,680 | $ | 0 | $ | 6,320 | |||||||||||||||||||
Collectively evaluated for impairment | 295,787 | 47,074 | 561,952 | 17,733 | 922,546 | ||||||||||||||||||||||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 1,046 | 0 | 3,282 | 0 | 4,328 | ||||||||||||||||||||||||
Total Loans Receivable | $ | 299,473 | $ | 47,074 | $ | 568,914 | $ | 17,733 | $ | 933,194 | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Allowance for loan loss: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 11 | $ | 0 | $ | 0 | $ | 0 | $ | 11 | |||||||||||||||||||
Collectively evaluated for impairment | 4,552 | 2,035 | 2,084 | 112 | 8,783 | ||||||||||||||||||||||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 9 | 0 | 0 | 0 | 9 | ||||||||||||||||||||||||
Total Allowance for Loan Loss | $ | 4,572 | $ | 2,035 | $ | 2,084 | $ | 112 | $ | 8,803 | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 885 | $ | 1,201 | $ | 3,498 | $ | 0 | $ | 5,584 | |||||||||||||||||||
Collectively evaluated for impairment | 260,982 | 47,327 | 512,313 | 21,775 | 842,397 | ||||||||||||||||||||||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 770 | 0 | 6,130 | 4 | 6,904 | ||||||||||||||||||||||||
Total Loans Receivable | $ | 262,637 | $ | 48,528 | $ | 521,941 | $ | 21,779 | $ | 854,885 | |||||||||||||||||||
Risk Category of Loans by Class of Loans | ' | ||||||||||||||||||||||||||||
The following tables present the risk category of loans by class of loans based on the most recent internal loan classification as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial | Construction, | Commercial | Other | Total | |||||||||||||||||||||||||
and | Land | and | |||||||||||||||||||||||||||
Industrial | Development | Other Real | |||||||||||||||||||||||||||
and Other | Estate | ||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Pass | $ | 289,594 | $ | 47,074 | $ | 547,600 | $ | 17,731 | $ | 901,999 | |||||||||||||||||||
Special Mention | 1,540 | 0 | 2,613 | 0 | 4,153 | ||||||||||||||||||||||||
Substandard | 8,339 | 0 | 18,701 | 2 | 27,042 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total | $ | 299,473 | $ | 47,074 | $ | 568,914 | $ | 17,733 | $ | 933,194 | |||||||||||||||||||
Commercial | Construction, | Commercial | Other | Total | |||||||||||||||||||||||||
and | Land | and | |||||||||||||||||||||||||||
Industrial | Development | Other Real | |||||||||||||||||||||||||||
and Other | Estate | ||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Pass | $ | 250,624 | $ | 47,328 | $ | 493,768 | $ | 21,655 | $ | 813,375 | |||||||||||||||||||
Special Mention | 4,602 | 0 | 5,300 | 0 | 9,902 | ||||||||||||||||||||||||
Substandard | 7,411 | 1,200 | 22,873 | 119 | 31,603 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 5 | 5 | ||||||||||||||||||||||||
Total | $ | 262,637 | $ | 48,528 | $ | 521,941 | $ | 21,779 | $ | 854,885 | |||||||||||||||||||
Aging Analysis of Recorded Investment | ' | ||||||||||||||||||||||||||||
The following tables present an aging analysis of the recorded investment in past due and non-accrual loans as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
31-60 | 61-90 | Greater | Total | Total | Current | Total Loans | |||||||||||||||||||||||
Days | Days | than | Past Due | Non | |||||||||||||||||||||||||
Past Due | Past Due | 90 Days | and | Accrual | |||||||||||||||||||||||||
Past Due | Accruing | ||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 0 | $ | 241 | $ | 0 | $ | 241 | $ | 3,682 | $ | 295,550 | $ | 299,473 | |||||||||||||||
Construction, Land Development and Other Land | 0 | 0 | 0 | 0 | 0 | 47,074 | 47,074 | ||||||||||||||||||||||
Commercial and Other Real Estate | 0 | 0 | 0 | 0 | 5,874 | 563,040 | 568,914 | ||||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 0 | 17,733 | 17,733 | ||||||||||||||||||||||
Total | $ | 0 | $ | 241 | $ | 0 | $ | 241 | $ | 9,556 | $ | 923,397 | $ | 933,194 | |||||||||||||||
31-60 | 61-90 | Greater | Total | Total | Current | Total Loans | |||||||||||||||||||||||
Days | Days | than | Past Due | Non | |||||||||||||||||||||||||
Past Due | Past Due | 90 Days | and | Accrual | |||||||||||||||||||||||||
Past Due | Accruing | ||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 1,025 | $ | 0 | $ | 0 | $ | 1,025 | $ | 1,583 | $ | 260,029 | $ | 262,637 | |||||||||||||||
Construction, Land Development and Other Land | 0 | 0 | 0 | 0 | 1,200 | 47,328 | 48,528 | ||||||||||||||||||||||
Commercial and Other Real Estate | 2,884 | 0 | 0 | 2,884 | 7,742 | 511,315 | 521,941 | ||||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 5 | 21,774 | 21,779 | ||||||||||||||||||||||
Total | $ | 3,909 | $ | 0 | $ | 0 | $ | 3,909 | $ | 10,530 | $ | 840,446 | $ | 854,885 | |||||||||||||||
Recorded Investment and Unpaid Principal Balances for Impaired Loans | ' | ||||||||||||||||||||||||||||
The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable for the dates and periods indicated (dollars in thousands). This table excludes purchased credit impaired loans (loans acquired in acquisitions with deteriorated credit quality) of $4.3 million and $6.9 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 2,540 | $ | 5,347 | $ | 0 | $ | 1,835 | $ | 0 | |||||||||||||||||||
Construction, Land Development and Other Land | 0 | 0 | 0 | 879 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 3,680 | 6,112 | 0 | 4,216 | 0 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and Industrial | 100 | 355 | 4 | 137 | 0 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial and Industrial | 2,640 | 5,702 | 4 | 1,972 | 0 | ||||||||||||||||||||||||
Construction, Land Development and Other Land | 0 | 0 | 0 | 879 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 3,680 | 6,112 | 0 | 4,216 | 0 | ||||||||||||||||||||||||
Total | $ | 6,320 | $ | 11,814 | $ | 4 | $ | 7,067 | $ | 0 | |||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 677 | $ | 1,490 | $ | 0 | $ | 646 | $ | 0 | |||||||||||||||||||
Construction, Land Development and Other Land | 1,201 | 2,791 | 0 | 1,235 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 3,498 | 4,331 | 0 | 1,252 | 0 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and Industrial | 208 | 463 | 11 | 175 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 0 | 0 | 0 | 531 | 0 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial and Industrial | 885 | 1,953 | 11 | 821 | 0 | ||||||||||||||||||||||||
Construction, Land Development and Other Land | 1,201 | 2,791 | 0 | 1,235 | 0 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 3,498 | 4,331 | 0 | 1,783 | 0 | ||||||||||||||||||||||||
Total | $ | 5,584 | $ | 9,075 | $ | 11 | $ | 3,839 | $ | 0 | |||||||||||||||||||
Additional Information on Impaired Loans | ' | ||||||||||||||||||||||||||||
The following is a summary of additional information pertaining to impaired loans for the periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Average recorded investment in impaired loans | $ | 7,067 | $ | 3,839 | |||||||||||||||||||||||||
Interest foregone on impaired loans | $ | 710 | $ | 308 | |||||||||||||||||||||||||
Cash collections applied to reduce principal balance | $ | 5,057 | $ | 111 | |||||||||||||||||||||||||
Interest income recognized on cash collections | $ | 0 | $ | 0 | |||||||||||||||||||||||||
Recorded Investment and Unpaid Principal Balances for Troubled Debt Restructured Loans | ' | ||||||||||||||||||||||||||||
The following tables include the recorded investment and unpaid principal balances for troubled debt restructured loans for the periods ending December 31, 2013 and 2012 (dollars in thousands). This table includes two TDR loans that were purchased credit impaired. As of December 31, 2013, these loans had a recorded investment of $87,000 and unpaid principal balances of $149,000. | |||||||||||||||||||||||||||||
Recorded | Unpaid | Interest Income | |||||||||||||||||||||||||||
Investment | Principal | Recognized | |||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 541 | $ | 843 | $ | 0 | |||||||||||||||||||||||
Commercial and Other Real Estate | 2,173 | 2,785 | 0 | ||||||||||||||||||||||||||
Total | $ | 2,714 | $ | 3,628 | $ | 0 | |||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Commercial and Industrial | $ | 314 | $ | 626 | $ | 5 | |||||||||||||||||||||||
Construction, Land Development and Other Land | 1,200 | 2,791 | 0 | ||||||||||||||||||||||||||
Commercial and Other Real Estate | 4,193 | 4,874 | 32 | ||||||||||||||||||||||||||
Total | $ | 5,707 | $ | 8,291 | $ | 37 | |||||||||||||||||||||||
Pre and Post Modification Recorded Investment in Troubled Debt Restructured Loans | ' | ||||||||||||||||||||||||||||
The following tables show the pre- and post-modification recorded investment in troubled debt restructured loans by type of modification and loan segment that have occurred during the periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | Number | Pre-Modification | Post- | ||||||||||||||||||||||||||
of Loans | Recorded | Modification | |||||||||||||||||||||||||||
Investment | Recorded | ||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||
Reduced Interest Rate and Lengthened Amortization: | |||||||||||||||||||||||||||||
Commercial and Industrial | 1 | $ | 310 | $ | 310 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 0 | 0 | 0 | ||||||||||||||||||||||||||
Total | 1 | $ | 310 | $ | 310 | ||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Reduced Interest Rate and Lengthened Amortization: | |||||||||||||||||||||||||||||
Commercial and Industrial | 1 | $ | 60 | $ | 60 | ||||||||||||||||||||||||
Commercial and Other Real Estate | 1 | 2,306 | 2,306 | ||||||||||||||||||||||||||
Total | 2 | $ | 2,366 | $ | 2,366 | ||||||||||||||||||||||||
Accretable Yield for Loans Acquired | ' | ||||||||||||||||||||||||||||
The following table reflects the accretable net discount for loans acquired through acquisition, for the periods indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Balance, beginning of year | $ | 12,189 | $ | 2,585 | |||||||||||||||||||||||||
Accretion, included in interest income | (3,754 | ) | (2,785 | ) | |||||||||||||||||||||||||
Additions, due to acquisition | 0 | 12,315 | |||||||||||||||||||||||||||
Sold acquired loans | 0 | 284 | |||||||||||||||||||||||||||
Reclassifications to non-accretable yield | (523 | ) | (210 | ) | |||||||||||||||||||||||||
Balance, end of year | $ | 7,912 | $ | 12,189 | |||||||||||||||||||||||||
Fair Value of Purchased Credit Impaired and Other Purchased Loans | ' | ||||||||||||||||||||||||||||
The following table presents the fair value of loans pursuant to accounting standards for PCI and other purchased loans as of the PC Bancorp acquisition date (dollars in thousands): | |||||||||||||||||||||||||||||
July 31, 2012 | |||||||||||||||||||||||||||||
Purchased | Other | Total | |||||||||||||||||||||||||||
credit | purchased | ||||||||||||||||||||||||||||
impaired | loans | ||||||||||||||||||||||||||||
loans | |||||||||||||||||||||||||||||
Contractually required payments | $ | 9,010 | $ | 283,518 | $ | 292,528 | |||||||||||||||||||||||
Less: non-accretable difference | (2,219 | ) | 0 | (2,219 | ) | ||||||||||||||||||||||||
Cash flows expected to be collected (undiscounted) | 6,791 | 283,518 | 290,309 | ||||||||||||||||||||||||||
Accretable yield | 0 | (12,315 | ) | (12,315 | ) | ||||||||||||||||||||||||
Fair value of purchased loans | $ | 6,791 | $ | 271,203 | $ | 277,994 | |||||||||||||||||||||||
Carrying Value of Purchased Credit Impaired Loans | ' | ||||||||||||||||||||||||||||
The following table reflects the outstanding balance and related carrying value of PCI loans as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Unpaid | Carrying | Unpaid | Carrying | ||||||||||||||||||||||||||
Principal | Value | Principal | Value | ||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||
Commercial and Industrial | $ | 1,599 | $ | 1,046 | $ | 1,221 | $ | 770 | |||||||||||||||||||||
Commercial and Other Real Estate | 5,611 | 3,282 | 9,424 | 6,130 | |||||||||||||||||||||||||
Other | 0 | 0 | 73 | 4 | |||||||||||||||||||||||||
Total | $ | 7,210 | $ | 4,328 | $ | 10,718 | $ | 6,904 | |||||||||||||||||||||
Accretable Net Discount of Purchased Credit Impaired Loans | ' | ||||||||||||||||||||||||||||
The following table reflects the activities in the accretable net discount for PCI loans for the period indicated (dollars in thousands): | |||||||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Balance, beginning of year | $ | 9 | $ | 0 | |||||||||||||||||||||||||
Accretion, included in interest income | (33 | ) | 0 | ||||||||||||||||||||||||||
Reclassifications from non-accretable yield | 419 | 9 | |||||||||||||||||||||||||||
Balance, end of year | $ | 395 | $ | 9 | |||||||||||||||||||||||||
Premises_and_Equipment_and_Lea1
Premises and Equipment and Lease Commitments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Premises and Equipment | ' | ||||||||
The following major classifications of premises and equipment are summarized as follows as of the dates indicated (dollars in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Furniture and equipment | $ | 5,252 | $ | 6,989 | |||||
Leasehold improvements | 6,730 | 4,747 | |||||||
Total | 11,982 | 11,736 | |||||||
Less: Accumulated depreciation and amortization | (8,451 | ) | (8,314 | ) | |||||
Total | $ | 3,531 | $ | 3,422 | |||||
Future Minimum Lease Payments for Operating Leases for Office and Branch Space Based Upon Obligations | ' | ||||||||
The following is a schedule of future minimum lease payments for operating leases for office and branch space based upon obligations at December 31, 2013 (dollars in thousands): | |||||||||
Year | Amount | ||||||||
2014 | $ | 2,041 | |||||||
2015 | 2,200 | ||||||||
2016 | 2,058 | ||||||||
2017 | 1,981 | ||||||||
2018 | 1,131 | ||||||||
Thereafter | 3,595 | ||||||||
Total | $ | 13,006 | |||||||
Goodwill_Core_Deposit_and_Leas1
Goodwill, Core Deposit and Leasehold Right Intangibles (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Changes in Gross Amounts of Core Deposit Intangibles and Related Accumulated Amortization | ' | ||||||||||||
The following table presents the changes in the gross amounts of core deposit intangibles and the related accumulated amortization for the dates and periods indicated (dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Gross amount of CDI: | |||||||||||||
Balance, beginning of year | $ | 2,103 | $ | 1,098 | $ | 1,098 | |||||||
Additions due to acquisitions | 0 | 1,005 | 0 | ||||||||||
Balance, end of year | 2,103 | 2,103 | 1,098 | ||||||||||
Accumulated Amortization: | |||||||||||||
Balance, beginning of year | (356 | ) | (137 | ) | (0 | ) | |||||||
Amortization | (309 | ) | (219 | ) | (137 | ) | |||||||
Balance, end of year | (665 | ) | (356 | ) | (137 | ) | |||||||
Net CDI, end of year | $ | 1,438 | $ | 1,747 | $ | 961 | |||||||
Qualified_Affordable_Housing_P1
Qualified Affordable Housing Project Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Company's Original Investment in Affordable Housing Project | ' | ||||||||||||||||||||||||
The following table presents the Company’s original investment in the LIHTC projects, the current recorded investment balance, and the unfunded liability balance of each investment at December 31, 2013. In addition, the table reflects the tax credits and tax benefits recorded by the Company during 2013, the amortization of the investment and the net impact to the Company’s income tax provision for 2013. Also see Note 19 – Income Tax, for the impact of these investments had on the Company’s effective tax rate (dollars in thousands): | |||||||||||||||||||||||||
Qualified Affordable Housing Projects at | Original | Current | Unfunded | Tax Credits | Amortization of | Net Income | |||||||||||||||||||
December 31, 2013 | Investment | Recorded | Liability | and Benefits (1) | Investments (2) | Tax Benefit | |||||||||||||||||||
Value | Investment | Obligation | |||||||||||||||||||||||
Enterprise Green Communities West II LP | $ | 1,000 | $ | 787 | $ | 190 | $ | 236 | $ | 160 | $ | 76 | |||||||||||||
Enterprise Housing Partners Calgreen II Fund LP | 2,050 | 1,735 | 1,817 | 390 | 314 | 76 | |||||||||||||||||||
Enterprise Housing Partners XXIV LP | 2,000 | 1,988 | 1,983 | 14 | 11 | 3 | |||||||||||||||||||
Total – Investments in Qualified Affordable Housing Projects | $ | 5,050 | $ | 4,510 | $ | 3,990 | $ | 640 | $ | 485 | $ | 155 | |||||||||||||
-1 | The amounts reflected in this column represent both the tax credits, as well as the tax benefits generated by the Qualified Affordable Housing Projects operating loss for the year. | ||||||||||||||||||||||||
-2 | This amount reduces the tax credits and benefits generated by the Qualified Affordable Housing Projects. | ||||||||||||||||||||||||
Schedule of Anticipated Income Tax Benefit that is Expected to be Recognized | ' | ||||||||||||||||||||||||
The following table reflects the anticipated net income tax benefit that is expected to be recognized by the Company over the next several years (dollars in thousands): | |||||||||||||||||||||||||
Qualified Affordable Housing Projects | Enterprise | Enterprise | Enterprise | Total | |||||||||||||||||||||
Green | Housing | Housing | Net Income Tax | ||||||||||||||||||||||
Communities | Partners | Partners XXIV | Benefit | ||||||||||||||||||||||
West II LP | Calgreen II | LP | |||||||||||||||||||||||
Fund LP | |||||||||||||||||||||||||
Anticipated net income tax benefit less amortization of investments: | |||||||||||||||||||||||||
2014 | $ | 43 | $ | 46 | $ | 52 | $ | 141 | |||||||||||||||||
2015 | 43 | 40 | 52 | 135 | |||||||||||||||||||||
2016 and thereafter | 279 | 332 | 468 | 1,079 | |||||||||||||||||||||
Total – anticipated net income tax benefit in Qualified Affordable Housing Projects | $ | 365 | $ | 418 | $ | 572 | $ | 1,355 | |||||||||||||||||
Borrowings_and_Subordinated_De1
Borrowings and Subordinated Debentures (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Brokers And Dealers [Abstract] | ' | ||||||||||||||||||||||||
Terms and Maturity of Bank's Securities Sold under Agreements | ' | ||||||||||||||||||||||||
The tables below describe the terms and maturity of the Company’s securities sold under agreements to repurchase as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Date Issued | Amount | Interest Rate | Original | Maturity Date | |||||||||||||||||||||
Term | |||||||||||||||||||||||||
3-Dec-13 | $ | 750 | 0.10% | 62 days | February 3, 2014 | ||||||||||||||||||||
31-Dec-13 | 10,391 | 0.10% – 0.40% | 2 days | January 2, 2014 | |||||||||||||||||||||
Total | $ | 11,141 | 0.30% | ||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Date Issued | Amount | Interest Rate | Original | Maturity Date | |||||||||||||||||||||
Term | |||||||||||||||||||||||||
5-Nov-12 | $ | 1,020 | 0.15% | 91 days | February 4, 2013 | ||||||||||||||||||||
31-Dec-12 | 21,837 | 0.10% – 0.40% | 1 day | January 2, 2013 | |||||||||||||||||||||
Total | $ | 22,857 | 0.29% | ||||||||||||||||||||||
Terms of Issuance Subordinated Debentures Outstanding | ' | ||||||||||||||||||||||||
The following table summarizes the terms of each issuance of subordinated debentures outstanding as of December 31, 2013: | |||||||||||||||||||||||||
Series | Amount | Issuance | Maturity | Rate Index | Current | Next Reset | |||||||||||||||||||
(in thousands) | Date | Date | Rate | Date | |||||||||||||||||||||
Trust I | $ | 6,186 | 12/10/04 | 3/15/35 | 3 month LIBOR + 2.05 | % | 2.293 | % | 3/17/14 | ||||||||||||||||
Trust II | 3,093 | 12/23/05 | 3/15/36 | 3 month LIBOR + 1.75 | % | 1.993 | % | 3/17/14 | |||||||||||||||||
Trust III | 3,093 | 6/30/06 | 9/15/36 | 3 month LIBOR + 1.85 | % | 2.093 | % | 3/17/14 | |||||||||||||||||
Subtotal | 12,372 | ||||||||||||||||||||||||
Unamortized fair value adjustment | (2,993 | ) | |||||||||||||||||||||||
Net | $ | 9,379 | |||||||||||||||||||||||
Short-Term Borrowings | ' | ||||||||||||||||||||||||
Details regarding the Company’s short-term borrowings for the dates and periods indicated are reflected in the table below (dollars in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Balance | Average | Weighted | Balance | Average | Weighted | ||||||||||||||||||||
Balance | Average | Balance | Average | ||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | $ | 11,141 | $ | 24,376 | 0.3 | % | $ | 22,857 | $ | 26,027 | 0.35 | % | |||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||
Balance Sheet Classification of Derivative Financial Instruments | ' | ||||||||
The following tables present the notional amount and the fair values of the asset and liability of the Company’s derivative instruments as of the dates and periods indicated (dollars in thousands): | |||||||||
Liability Derivatives | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Fair Value Hedges | |||||||||
Total interest rate contacts notional amount | $ | 31,914 | $ | 35,990 | |||||
Derivatives not designated as hedging instruments: | |||||||||
Interest rate swap contracts fair value | $ | 738 | $ | 1,114 | |||||
Derivatives designated as hedging instruments: | |||||||||
Interest rate swap contracts fair value | 3,205 | 4,924 | |||||||
Total interest rate contracts fair value | $ | 3,943 | $ | 6,038 | |||||
Balance sheet location | Accrued Interest | Accrued Interest | |||||||
Payable and | Payable and | ||||||||
Other Liabilities | Other Liabilities | ||||||||
Effect of Derivative Instruments on Consolidated Statements of Income | ' | ||||||||
The following table summarizes the effect of derivative financial instruments on the consolidated statements of income for the periods indicated (dollars in thousands): | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Interest rate swap contracts – loans | |||||||||
Increase in fair value of interest rate swap contracts | $ | 306 | $ | 666 | |||||
Payments on interest rate swap contracts on loans | (289 | ) | (329 | ) | |||||
Net increase in other non-interest income | 17 | 337 | |||||||
Interest rate swap contracts – subordinated debenture | |||||||||
Increase in fair value of interest rate swap contracts | 70 | 65 | |||||||
Payments on interest rate swap contracts on subordinated debentures | (70 | ) | (62 | ) | |||||
Net increase in other non-interest income | 0 | 3 | |||||||
Net increase in other non-interest income | $ | 17 | $ | 340 | |||||
Derivatives designated as hedging instruments: | |||||||||
Interest rate swap contracts – loans | |||||||||
Increase (decrease) in fair value of interest rate swap contracts | $ | 1,719 | $ | (59 | ) | ||||
(Decrease) in fair value of hedged loans | (554 | ) | (73 | ) | |||||
Payments on interest rate swap contracts on loans | (1,294 | ) | (333 | ) | |||||
Net (decrease) in interest income on loans | $ | (129 | ) | $ | (465 | ) | |||
Balance_Sheet_Offsetting_Table
Balance Sheet Offsetting (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Securities Sold Under Repurchase Agreements and Derivatives Securities Offset Consolidated Financial Statements Due to an Enforceable Master Netting Arrangement | ' | ||||||||||||||||||||||||
The table below presents the Company’s financial instruments that may be eligible for offsetting which include securities sold under agreements to repurchase that have no enforceable master netting arrangement and derivative securities that could be offset in the consolidated financial statements due to an enforceable master netting arrangement (dollars in thousands): | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Gross Amounts | Net Amount | |||||||||||||||||||||
Amounts | Amounts | of Assets | Not Offset in the | (Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented | Consolidated Balance Sheets | over liability | |||||||||||||||||||||
in the | Consolidated | in the | balance | ||||||||||||||||||||||
Consolidated | Balance | Consolidated | required to | ||||||||||||||||||||||
Balance | Sheets | Balance | be pledged) | ||||||||||||||||||||||
Sheets | Sheets | Financial | Collateral | ||||||||||||||||||||||
Instruments | Pledged | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||
Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) | $ | 3,943 | $ | 0 | $ | 3,943 | $ | 3,943 | $ | 4,194 | $ | 251 | |||||||||||||
Securities sold under agreements to repurchase | 11,141 | 0 | 11,141 | 11,141 | 11,750 | 609 | |||||||||||||||||||
Total | $ | 15,084 | $ | 0 | $ | 15,084 | $ | 15,084 | $ | 15,944 | $ | 860 | |||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||
Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) | $ | 6,038 | $ | 0 | $ | 6,038 | $ | 6,038 | $ | 6,406 | $ | 368 | |||||||||||||
Securities sold under agreements to repurchase | 22,857 | 0 | 22,857 | 22,857 | 23,300 | 443 | |||||||||||||||||||
Total | $ | 28,895 | $ | 0 | $ | 28,895 | $ | 28,895 | $ | 29,706 | $ | 811 | |||||||||||||
Stock_Options_and_Restricted_S1
Stock Options and Restricted Stock (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Future Compensation Expense Related to Non-Vested Stock Option and Restricted Stock Grants | ' | ||||||||||||||||
At December 31, 2013, future compensation expense related to non-vested stock option and restricted stock grants aggregated to the amounts reflected in the table below (dollars in thousands): | |||||||||||||||||
Future Stock Based Compensation Expense | Stock | Restricted | Total | ||||||||||||||
Options | Stock | ||||||||||||||||
2014 | $ | 10 | $ | 1,191 | $ | 1,201 | |||||||||||
2015 | 2 | 456 | 458 | ||||||||||||||
2016 | 0 | 131 | 131 | ||||||||||||||
2017 | 0 | 18 | 18 | ||||||||||||||
Thereafter | 0 | 3 | 3 | ||||||||||||||
Total | $ | 12 | $ | 1,799 | $ | 1,811 | |||||||||||
Stock Option Activity | ' | ||||||||||||||||
The following table summarizes the stock option activity under the plans for the year ended December 31, 2013: | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (in thousands) | |||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding stock options at December 31, 2012 | 734,896 | $ | 12.44 | 2.8 | $ | 966 | |||||||||||
Granted | 0 | 0 | |||||||||||||||
Exercised | (282,031 | ) | 9.89 | ||||||||||||||
Forfeited | (625 | ) | 9.5 | ||||||||||||||
Expired | (17,500 | ) | 18.18 | ||||||||||||||
Outstanding stock options at December 31, 2013 | 434,740 | $ | 13.89 | 2.1 | $ | 1,913 | |||||||||||
Exercisable options at December 31, 2013 | 417,465 | $ | 13.97 | 2.1 | $ | 1,816 | |||||||||||
Unvested options at December 31, 2013 | 17,275 | $ | 11.92 | 2.8 | $ | 96 | |||||||||||
Outstanding, vested and expected to vest at December 31, 2013 | 434,740 | $ | 13.89 | 2.1 | $ | 1,913 | |||||||||||
Restricted Stock Activity | ' | ||||||||||||||||
The following table summarizes the restricted stock activity under the Equity Plan for the year ended December 31, 2013: | |||||||||||||||||
Number of Shares | Weighted-Average | ||||||||||||||||
Grant-Date Fair Value | |||||||||||||||||
per Share | |||||||||||||||||
Restricted Stock: | |||||||||||||||||
Unvested, at December 31, 2012 | 290,550 | $ | 11.99 | ||||||||||||||
Granted | 81,050 | 16.8 | |||||||||||||||
Vested | (93,950 | ) | 12.02 | ||||||||||||||
Cancelled and forfeited | (11,600 | ) | 11.06 | ||||||||||||||
Unvested, at December 31, 2013 | 266,050 | $ | 13.49 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Income Tax Expense (Benefit) | ' | ||||||||||||||||||||||||
Income tax expense (benefit) consists of the following (dollars in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current provision | |||||||||||||||||||||||||
Federal | $ | 1,669 | $ | 2,497 | $ | 748 | |||||||||||||||||||
State | 238 | 265 | 337 | ||||||||||||||||||||||
Total current provision | 1,907 | 2,762 | 1,085 | ||||||||||||||||||||||
Deferred provision (benefit) | |||||||||||||||||||||||||
Federal | 2,674 | (917 | ) | 213 | |||||||||||||||||||||
State | 427 | (180 | ) | (151 | ) | ||||||||||||||||||||
Total deferred provision (benefit) | 3,101 | (1,097 | ) | 62 | |||||||||||||||||||||
Total current and deferred provision | $ | 5,008 | $ | 1,665 | $ | 1,147 | |||||||||||||||||||
Components of Net Deferred Tax Asset Recognized Accompanying Balance Sheet | ' | ||||||||||||||||||||||||
The following is a summary of the components of the net deferred tax asset recognized in the accompanying balance sheets as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred Tax Assets | |||||||||||||||||||||||||
Federal tax operating loss carryforward | $ | 317 | $ | 520 | |||||||||||||||||||||
State tax operating loss carryforward | 168 | 293 | |||||||||||||||||||||||
Allowance for loan loss | 4,726 | 3,656 | |||||||||||||||||||||||
Purchase accounting and loan fair value adjustments | 5,558 | 8,763 | |||||||||||||||||||||||
Impairment charge on securities available-for-sale | 0 | 391 | |||||||||||||||||||||||
Accruals and other liabilities | 1,570 | 2,389 | |||||||||||||||||||||||
Stock compensation and deferred compensation costs | 3,145 | 2,869 | |||||||||||||||||||||||
Net unrealized loss on securities available-for-sale | 143 | 0 | |||||||||||||||||||||||
Start up, organizational and other costs | 255 | 287 | |||||||||||||||||||||||
Total deferred tax assets | 15,882 | 19,168 | |||||||||||||||||||||||
Deferred Tax Liabilities | |||||||||||||||||||||||||
Net unrealized gain on securities available-for-sale | (0 | ) | (975 | ) | |||||||||||||||||||||
State tax liability | (1,270 | ) | (1,288 | ) | |||||||||||||||||||||
Unamortized fair value on subordinated debentures | (1,402 | ) | (1,436 | ) | |||||||||||||||||||||
Core deposit intangibles | (478 | ) | (747 | ) | |||||||||||||||||||||
Prepaid expense and other | (815 | ) | (754 | ) | |||||||||||||||||||||
Total deferred tax liabilities | (3,965 | ) | (5,200 | ) | |||||||||||||||||||||
Valuation allowance | (82 | ) | (150 | ) | |||||||||||||||||||||
Deferred tax assets, net | $ | 11,835 | $ | 13,818 | |||||||||||||||||||||
Reconciliation of Statutory Income Tax Rate | ' | ||||||||||||||||||||||||
The following table presents a reconciliation of the statutory income tax rate to the consolidated effective income tax rate for each of the periods indicated (dollars in thousands): | |||||||||||||||||||||||||
For Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||
Federal income tax expense at statutory rate | $ | 5,178 | 35 | % | $ | 1,187 | 35 | % | $ | 915 | 35 | % | |||||||||||||
State franchise taxes, net of federal benefit, excluding LIHTC investments | 524 | 3.54 | 315 | 9.29 | 123 | 4.7 | |||||||||||||||||||
Effect of rate change on net deferred tax asset | (326 | ) | (2.20 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||
Release of state valuation allowance on use of net operating loss | (68 | ) | (0.46 | ) | (150 | ) | (4.43 | ) | 0 | 0 | |||||||||||||||
Meals and entertainment, dues and other non-deductible items | 54 | 0.37 | 47 | 1.39 | 38 | 1.46 | |||||||||||||||||||
Cash surrender life insurance | (210 | ) | (1.42 | ) | (91 | ) | (2.68 | ) | 0 | 0 | |||||||||||||||
Stock compensation expense | (126 | ) | (0.85 | ) | 39 | 1.15 | 1 | 0.02 | |||||||||||||||||
LIHTC investments | (155 | ) | (1.05 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||
Merger costs | 5 | 0.03 | 300 | 8.84 | 89 | 3.42 | |||||||||||||||||||
Other | 132 | 0.89 | 18 | 0.53 | (19 | ) | (0.73 | ) | |||||||||||||||||
$ | 5,008 | 33.85 | % | $ | 1,665 | 49.09 | % | $ | 1,147 | 43.88 | % | ||||||||||||||
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component for the periods indicated (dollars in thousands): | |||||||||||||
Before | Tax | Net of | |||||||||||
Tax | Effect | Tax | |||||||||||
Year ended December 31, 2013 | |||||||||||||
Net unrealized gains (losses) on investment securities: | |||||||||||||
Beginning balance | $ | 2,369 | $ | (975 | ) | $ | 1,394 | ||||||
Non-credit portion of other-than-temporary impairments arising during the period | (41 | ) | 17 | (24 | ) | ||||||||
Net unrealized losses arising during the period | (2,629 | ) | 1,082 | (1,547 | ) | ||||||||
Other comprehensive loss before reclassification | (2,670 | ) | 1,099 | (1,571 | ) | ||||||||
Reclassification adjustment for gains realized in net income | (47 | ) | 19 | (28 | ) | ||||||||
Net other comprehensive loss | (2,717 | ) | 1,118 | (1,599 | ) | ||||||||
Ending balance | $ | (348 | ) | $ | 143 | $ | (205 | ) | |||||
Year ended December 31, 2012 | |||||||||||||
Net unrealized gains on investment securities: | |||||||||||||
Beginning balance | $ | 1,535 | $ | (645 | ) | $ | 890 | ||||||
Non-credit portion of other-than-temporary impairments arising during the period | 766 | (321 | ) | 445 | |||||||||
Net unrealized gains arising during the period | 68 | (9 | ) | 59 | |||||||||
Net other comprehensive income | 834 | (330 | ) | 504 | |||||||||
Ending balance | $ | 2,369 | $ | (975 | ) | $ | 1,394 | ||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The table below presents the components of accumulated other comprehensive income (loss) as of the dates indicated (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Net unrealized gain (loss) on non other-than-temporarily impaired investment securities | $ | (348 | ) | $ | 2,332 | ||||||||
Net unrealized gain on other-than-temporarily impaired investment securities | 0 | 37 | |||||||||||
Total net unrealized gain (loss) on investment securities | (348 | ) | 2,369 | ||||||||||
Tax (expense) benefit | 143 | (975 | ) | ||||||||||
Total accumulated other comprehensive income (loss) | $ | (205 | ) | $ | 1,394 | ||||||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | ' | ||||||||||||||||||||||||
The following tables present the Tier 1 Leverage Ratio, Tier 1 Risk-Based Capital Ratio and the Total Risk-Based Capital Ratio of the Consolidated Company in addition to the Bank as of December 31, 2013, and December 31, 2012, and compare the actual ratios to the capital requirements imposed by government regulations. All amounts reflected in the table below are stated in thousands, except percentages: | |||||||||||||||||||||||||
CU Bancorp Consolidated: | |||||||||||||||||||||||||
Actual | For Capital Adequacy | To Be Well- | |||||||||||||||||||||||
Purposes | Capitalized Under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 145,372 | 12.8 | % | $ | 90,844 | 8 | % | $ | 113,555 | 10 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | 134,440 | 11.84 | % | 45,422 | 4 | % | 68,133 | 6 | % | ||||||||||||||||
Tier 1 Leverage Ratio | 134,440 | 9.57 | % | 56,172 | 4 | % | 70,215 | 5 | % | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 126,177 | 12.35 | % | $ | 81,753 | 8 | % | $ | 102,191 | 10 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | 117,118 | 11.46 | % | 40,876 | 4 | % | 61,315 | 6 | % | ||||||||||||||||
Tier 1 Leverage Ratio | 117,118 | 9.13 | % | 51,290 | 4 | % | 64,113 | 5 | % | ||||||||||||||||
California United Bank: | |||||||||||||||||||||||||
Actual | For Capital Adequacy | To Be Well- | |||||||||||||||||||||||
Purposes | Capitalized Under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 135,682 | 11.96 | % | $ | 90,772 | 8 | % | $ | 113,465 | 10 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | 124,750 | 10.99 | % | 45,386 | 4 | % | 68,079 | 6 | % | ||||||||||||||||
Tier 1 Leverage Ratio | 124,750 | 8.9 | % | 56,082 | 4 | % | 70,102 | 5 | % | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 118,405 | 11.61 | % | $ | 81,615 | 8 | % | $ | 102,019 | 10 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | 109,346 | 10.72 | % | 40,808 | 4 | % | 61,211 | 6 | % | ||||||||||||||||
Tier 1 Leverage Ratio | 109,346 | 8.55 | % | 51,133 | 4 | % | 63,917 | 5 | % |
Fair_Value_Information_Tables
Fair Value Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
The following table summarizes the financial assets and financial liabilities measured at fair value on a recurring basis as of the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands): | |||||||||||||||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Carrying | in Active | Other | Unobservable | ||||||||||||||||||||||
Value | Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Financial Assets – December 31, 2013 | |||||||||||||||||||||||||
Investment securities available-for-sale | $ | 106,488 | $ | 0 | $ | 106,488 | $ | 0 | |||||||||||||||||
Financial Liabilities – December 31, 2013 | |||||||||||||||||||||||||
Interest Rate Swap Contracts | $ | 3,943 | $ | 0 | $ | 3,943 | $ | 0 | |||||||||||||||||
Financial Assets – December 31, 2012 | |||||||||||||||||||||||||
Investment securities available-for-sale | $ | 118,153 | $ | 0 | $ | 115,243 | $ | 2,910 | |||||||||||||||||
Financial Liabilities – December 31, 2012 | |||||||||||||||||||||||||
Interest Rate Swap Contracts | $ | 6,038 | $ | 0 | $ | 6,038 | $ | 0 | |||||||||||||||||
Roll-Forward of All Assets and Liabilities and Additional Information about Financial Assets Measured at Fair Value | ' | ||||||||||||||||||||||||
The following table presents a roll forward of all assets and liabilities and additional information about the financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the dates and periods indicated (dollars in thousands): | |||||||||||||||||||||||||
Financial Assets – Measured at Fair Value on a Recurring Basis using Unobservable Inputs | |||||||||||||||||||||||||
Balance | Included | Included in | Purchases, | Transfers | Balance at | ||||||||||||||||||||
at | in | Other | Issuances, | into | December 31 | ||||||||||||||||||||
January 1 | Earnings | Comprehensive | Sales | (out of) | |||||||||||||||||||||
Income | Settlements | Level 3 | |||||||||||||||||||||||
(Loss) | |||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Private Issue CMO Securities (1) | $ | 2,910 | $ | (5 | ) | $ | (866 | ) | $ | (2,039 | ) | $ | 0 | $ | 0 | ||||||||||
Total | $ | 2,910 | $ | (5 | ) | $ | (866 | ) | $ | (2,039 | ) | $ | 0 | $ | 0 | ||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
Private Issue CMO Securities | $ | 2,775 | $ | (137 | ) | $ | 766 | $ | (494 | ) | $ | 0 | $ | 2,910 | |||||||||||
U.S. Government Sponsored Agency CMO Securities (2) | 2,379 | (1 | ) | 9 | (591 | ) | (1,796 | ) | 0 | ||||||||||||||||
Total | $ | 5,154 | $ | (138 | ) | $ | 775 | $ | (1,085 | ) | $ | (1,796 | ) | $ | 2,910 | ||||||||||
-1 | The Company sold all of its Private Issue CMO Securities in January 2013. | ||||||||||||||||||||||||
-2 | The FDIC issued security is assumed to have been transferred to a level 2 category at the beginning of 2012, based on the market pricing of the security. | ||||||||||||||||||||||||
Balances of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | ' | ||||||||||||||||||||||||
The following table presents the balances of assets and liabilities measured at fair value on a non-recurring basis by caption and by level within the fair value hierarchy as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
Recorded | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Investment | in Active | Other | Unobservable | ||||||||||||||||||||||
Carrying | Markets for | Observable | Inputs | ||||||||||||||||||||||
Value | Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
Financial Assets – December 31, 2013 | |||||||||||||||||||||||||
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) | $ | 264 | $ | 0 | $ | 0 | $ | 267 | |||||||||||||||||
Total | $ | 264 | $ | 0 | $ | 0 | $ | 267 | |||||||||||||||||
Financial Assets – December 31, 2012 | |||||||||||||||||||||||||
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs offs (non-purchased credit impaired loans) | $ | 2,056 | $ | 0 | $ | 0 | $ | 2,269 | |||||||||||||||||
Other real estate owned | 3,112 | 0 | 0 | 3,112 | |||||||||||||||||||||
Total | $ | 5,168 | $ | 0 | $ | 0 | $ | 5,381 | |||||||||||||||||
Significant Unobservable Inputs Used in Fair Value Measurements for Level 3 Assets and Liabilities Measured at Fair Value on Recurring or Non-Recurring | ' | ||||||||||||||||||||||||
The following table presents the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
Fair Value at | Valuation | Significant | Significant | ||||||||||||||||||||||
December 31, | Technique | Unobservable Inputs | Unobservable Input | ||||||||||||||||||||||
2013 | Values | ||||||||||||||||||||||||
Financial Assets – December 31, 2013 | |||||||||||||||||||||||||
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off (1) | $287 | Internal valuation of | Management assumption | $287 | |||||||||||||||||||||
Accounts Receivable | regarding collectability of | ||||||||||||||||||||||||
aging, net of credit loss | accounts receivable aging | ||||||||||||||||||||||||
estimate and | report, and real estate | ||||||||||||||||||||||||
Commercial Real | appraisal report | ||||||||||||||||||||||||
Estate appraisal | |||||||||||||||||||||||||
Less estimated selling costs | $20 | ||||||||||||||||||||||||
-1 | During 2013, the Company recorded total charge-offs of $605,000 on the principal balance of the two loans. | ||||||||||||||||||||||||
Level in Fair Value Hierarchy for Financial Instruments Estimated Fair Values | ' | ||||||||||||||||||||||||
The table below presents the level in the fair value hierarchy for the financial instruments estimated fair values, as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
Carrying | Fair Value | Quoted | Significant | Significant | |||||||||||||||||||||
Amount | Prices in | Other | Unobservable | ||||||||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||||||||||
for | (Level 2) | ||||||||||||||||||||||||
Identical | |||||||||||||||||||||||||
Assets or | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||
Investment securities available-for-sale | $ | 106,488 | $ | 106,488 | $ | 0 | $ | 106,488 | $ | 0 | |||||||||||||||
Loans, net | 922,591 | 926,500 | 0 | 0 | 926,500 | ||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Certificates of deposit | 63,581 | 63,680 | 0 | 63,680 | 0 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 11,141 | 11,141 | 0 | 11,141 | 0 | ||||||||||||||||||||
Subordinated debentures | 9,379 | 12,372 | 0 | 0 | 12,372 | ||||||||||||||||||||
Interest rate swap contracts | 3,943 | 3,943 | 0 | 3,943 | 0 | ||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||
Investment securities available-for-sale | $ | 118,153 | $ | 118,153 | $ | 0 | $ | 115,243 | $ | 2,910 | |||||||||||||||
Loans, net | 846,082 | 848,146 | 0 | 0 | 848,146 | ||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Certificates of deposit | 81,336 | 81,648 | 0 | 81,648 | 0 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 22,857 | 22,857 | 0 | 22,857 | 0 | ||||||||||||||||||||
Subordinated debentures | 9,169 | 12,372 | 0 | 0 | 12,372 | ||||||||||||||||||||
Interest rate swap contracts | 6,038 | 6,038 | 0 | 6,038 | 0 |
Summary_Quarterly_Data_Tables
Summary Quarterly Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary Quarterly Financial Data | ' | ||||||||||||||||||||||||||||||||
2013 Quarters Ended | 2012 Quarters Ended | ||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Dec. | Sept. | June | Mar. | Dec. | Sept. | June | Mar. | |||||||||||||||||||||||||
31 | 30 | 30 | 31 | 31 | 30 | 30 | 31 | ||||||||||||||||||||||||||
Interest income | $ | 12,841 | $ | 12,822 | $ | 13,114 | $ | 12,069 | $ | 12,457 | $ | 10,400 | $ | 7,161 | $ | 7,478 | |||||||||||||||||
Interest expense | 498 | 516 | 534 | 531 | 696 | 626 | 236 | 239 | |||||||||||||||||||||||||
Net interest income | 12,343 | 12,306 | 12,580 | 11,538 | 11,761 | 9,774 | 6,925 | 7,239 | |||||||||||||||||||||||||
Provision for loan losses | 934 | 631 | 1,153 | 134 | 867 | 521 | 380 | 0 | |||||||||||||||||||||||||
Net interest income after provision for loan losses | 11,409 | 11,675 | 11,427 | 11,404 | 10,894 | 9,253 | 6,545 | 7,239 | |||||||||||||||||||||||||
Non-interest income | 1,931 | 1,471 | 1,690 | 1,426 | 1,402 | 1,185 | 752 | 622 | |||||||||||||||||||||||||
Non-interest expense | 9,620 | 9,430 | 9,281 | 9,309 | 9,502 | 11,823 | 6,270 | 6,905 | |||||||||||||||||||||||||
Net income (loss) before provision for income tax expense (benefit) | 3,720 | 3,716 | 3,836 | 3,521 | 2,794 | (1,385 | ) | 1,027 | 956 | ||||||||||||||||||||||||
Provision for income tax (benefit) | 888 | 1,239 | 1,515 | 1,366 | 1,166 | (453 | ) | 502 | 450 | ||||||||||||||||||||||||
Net Income (Loss) | $ | 2,832 | $ | 2,477 | $ | 2,321 | $ | 2,155 | $ | 1,628 | $ | (932 | ) | $ | 525 | $ | 506 | ||||||||||||||||
Basic income (loss) per share | $ | 0.26 | $ | 0.24 | $ | 0.22 | $ | 0.21 | $ | 0.16 | $ | (0.10 | ) | $ | 0.08 | $ | 0.08 | ||||||||||||||||
Diluted income (loss) per share | $ | 0.26 | $ | 0.23 | $ | 0.22 | $ | 0.2 | $ | 0.15 | $ | (0.10 | ) | $ | 0.08 | $ | 0.07 | ||||||||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||
Parent Company Condensed Balance Sheet | ' | ||||||||
The following tables present the parent company only condensed balance sheets and the related statements of net earnings and condensed statements of cash flows for the dates and periods indicated (dollars in thousands): | |||||||||
Parent Company Only Condensed Balance Sheets | December 31, | ||||||||
2013 | 2012 | ||||||||
ASSETS | |||||||||
Cash and due from banks | $ | 4,348 | $ | 1,477 | |||||
Certificates of deposit in other financial institutions | 0 | 370 | |||||||
Loans | 1,786 | 2,472 | |||||||
Investment in subsidiary | 141,020 | 130,217 | |||||||
Accrued interest receivable and other assets | 207 | 353 | |||||||
Total Assets | $ | 147,361 | $ | 134,889 | |||||
LIABILITIES | |||||||||
Subordinated debentures | $ | 9,379 | $ | 9,169 | |||||
Accrued interest payable and other liabilities | 58 | 97 | |||||||
Total Liabilities | 9,437 | 9,266 | |||||||
SHAREHOLDERS’ EQUITY | 137,924 | 125,623 | |||||||
Total Liabilities and Shareholders’ Equity | $ | 147,361 | $ | 134,889 | |||||
Parent Company Condensed Income Statement | ' | ||||||||
Parent Company Only Condensed Statements of Income | Years Ended December 31, | ||||||||
2013 | 2012 | ||||||||
Interest Income | $ | 172 | $ | 93 | |||||
Interest Expense | 485 | 331 | |||||||
Operating Expenses | 556 | 225 | |||||||
Total Expenses | 1,041 | 556 | |||||||
Loss Before Income Tax Benefit and Equity in Undistributed Earnings of Subsidiary | (869 | ) | (463 | ) | |||||
Income tax benefit | 371 | 138 | |||||||
Loss Before Equity in Undistributed Earnings of Subsidiary | (498 | ) | (325 | ) | |||||
Equity in undistributed earnings of subsidiary | 10,283 | 2,052 | |||||||
Net Income | $ | 9,785 | $ | 1,727 | |||||
Parent Company Condensed Cash Flow Statement | ' | ||||||||
Parent Company Only Condensed Statements of Cash Flows | Years Ended December 31, | ||||||||
2013 | 2012 | ||||||||
Cash flows from operating activities: | |||||||||
Net income: | $ | 9,785 | $ | 1,727 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||
Equity in undistributed earnings of subsidiary | (10,283 | ) | (2,052 | ) | |||||
Net accretion of discounts/premiums | (36 | ) | (32 | ) | |||||
Accretion of subordinated debenture discount | 210 | 94 | |||||||
Net change in fair value of interest rate contract | (70 | ) | (65 | ) | |||||
Increase in accrued interest receivable and other assets | (226 | ) | (12 | ) | |||||
Decrease in accrued interest payable and other liabilities | 32 | 25 | |||||||
Net cash provided by (used in) operating activities | 588 | (315 | ) | ||||||
Cash flows from investing activities: | |||||||||
Cash and cash equivalents acquired in acquisition, net of cash paid | 0 | 2,681 | |||||||
Capital contribution made to subsidiary | 0 | (1,350 | ) | ||||||
Cash paid for stock options to PCB employees and dissenting shareholders | 0 | (463 | ) | ||||||
Cash paid related to stock issuance | 0 | (199 | ) | ||||||
Maturity of Certificate of Deposit | 370 | ||||||||
Net decrease in loans | 721 | 194 | |||||||
Net cash provided by investing activities | 1,091 | 863 | |||||||
Cash flows from financing activities: | |||||||||
Net proceeds from exercise of stock options | 2,790 | 0 | |||||||
Restricted stock repurchase | (422 | ) | 0 | ||||||
Cash proceeds from Bank on prior year tax receivable | 0 | 928 | |||||||
Net cash provided by financing activities | 2,368 | 928 | |||||||
Net increase in cash | 2,871 | 1,476 | |||||||
Cash, beginning of year | 1,477 | 1 | |||||||
Cash, end of year | $ | 4,348 | $ | 1,477 | |||||
Supplemental disclosures of cash flow information: | |||||||||
Cash paid during the period for interest | $ | 281 | $ | 204 | |||||
Cash paid during the period for taxes | $ | 1 | $ | 1 | |||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 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 | |
Office | Office | Derivatives not Designated as Hedging Instruments | Fair Value Hedges | Cash Flow Hedge | Certificates of Deposit | Other Financial Institutions [Member] | Interest Rate Swap Contracts Fair Value | Interest Rate Swap Contracts Fair Value | Minimum | Minimum | Maximum | Maximum | ||||
Derivative | Derivative | Derivative | Derivative | Derivatives not Designated as Hedging Instruments | Furniture and Fixtures | Furniture and Fixtures | ||||||||||
Derivative | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Full service branch offices | 8 | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal Reserve Bank Balance | $1,129,000 | ' | $1,129,000 | ' | $1,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount pledged as collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,300,000 | 5,100,000 | ' | ' | ' | ' |
Certificates of deposit original maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | '12 months | ' |
Certificates of deposit remaining maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 days | ' | '12 months | ' |
Certificates of deposit, weighted average maturity period | ' | ' | ' | ' | ' | ' | ' | ' | '5 months 6 days | ' | ' | ' | ' | ' | ' | ' |
Certificates of deposit, weighted average yield | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' |
Investments in certificates of deposit | 60,307,000 | ' | 60,307,000 | ' | 27,006,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' |
Deposits not covered by FDIC insurance | 20,100,000 | ' | 20,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest bearing deposit | 218,131,000 | ' | 218,131,000 | ' | 157,715,000 | ' | ' | ' | ' | 14,500,000 | ' | ' | ' | ' | ' | ' |
Certificates of Deposits | 10,000,000 | ' | 10,000,000 | ' | 10,000,000 | ' | ' | ' | ' | 4,300,000 | ' | ' | ' | ' | ' | ' |
Loans classified as held for sale | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '10 years |
Goodwill, impairment | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Swap contracts acquired | 24 | ' | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Swap contracts designated as interest rate hedges | ' | ' | ' | ' | ' | ' | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interest rate swaps | ' | ' | ' | ' | ' | 2 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated income tax rate | ' | ' | 41.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in Community Redevelopment Act | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment term | ' | '60 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on investments | ' | 0.00% | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount eligible for Qualified Investment Tax Credit | ' | $215,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Shareholder | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Excess of the purchase price over the estimated fair value of the net assets acquired | ' | $12,292,000 | $12,292,000 | ' |
Recorded net fair value discount of loans acquired | ' | 14,500,000 | ' | ' |
Interest Income | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Recorded net fair value discount of loans acquired | ' | 12,300,000 | ' | ' |
Purchased Credit Impaired loans | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Recorded net fair value discount of loans acquired | ' | 2,200,000 | ' | ' |
PC Bancorp | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Outstanding common shares acquired, percentage | ' | 100.00% | ' | ' |
Common shares, amount exchanged | ' | 42,300,000 | ' | ' |
Common shares issued | 3,721,382 | 3,721,382 | ' | ' |
Business acquisition consideration, shares amount | ' | 41,866,000 | ' | ' |
Business Acquisition Consideration Closing Stock Price Per Share | ' | $11.25 | ' | ' |
Cash payment to stock option holders | ' | 455,000 | ' | ' |
Share received in exchange for each share | ' | 0.9923 | ' | ' |
Exchange rate of fractional shares issued, per share | ' | $11.07 | ' | ' |
Number of dissenting shareholders | ' | 2 | ' | ' |
Common shares exchanged | ' | 685 | ' | ' |
Common shares, exchange rate per share | ' | $10.25 | ' | ' |
Excess of the purchase price over the estimated fair value of the net assets acquired | 6,137,000 | 6,100,000 | ' | ' |
Core deposit intangible | 1,005,000 | 1,000,000 | ' | ' |
Amortization Period | ' | '10 years | ' | ' |
Estimated non-recurring merger expenses for legal, accounting, and other professional fees, net of tax | ' | ' | 2,600,000 | 183,000 |
PC Bancorp | Additional | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Common shares, amount exchanged | ' | 7,000 | ' | ' |
PC Bancorp | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Acquired loans fair value | 278,000,000 | ' | ' | ' |
PC Bancorp | Non Accrual Loans | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Acquired loans fair value | $6,800,000 | ' | ' | ' |
Fair_Values_of_Assets_Acquired
Fair Values of Assets Acquired and Liabilities Assumed as of Date of Acquisition (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2012 | Dec. 31, 2013 |
PC Bancorp | PC Bancorp | ||||
Assets: | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | $42,172 | ' |
Certificates of deposit in other financial institutions | ' | ' | ' | 4,711 | ' |
Investment securities available-for-sale | ' | ' | ' | 44,404 | ' |
Loans | ' | ' | ' | 277,994 | ' |
Premises and equipment, net | ' | ' | ' | 276 | ' |
Deferred tax asset | ' | ' | ' | 7,163 | ' |
Goodwill | 12,292 | 12,292 | ' | 6,137 | 6,100 |
Core deposit intangible | ' | ' | ' | 1,005 | 1,000 |
Bank owned life insurance | ' | ' | ' | 3,665 | ' |
Accrued interest receivable and other assets | ' | ' | ' | 9,503 | ' |
Total Assets | ' | ' | ' | 397,030 | ' |
Liabilities: | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | 334,084 | ' |
Subordinated debentures | ' | ' | ' | 9,075 | ' |
Accrued interest payable and other liabilities | ' | ' | ' | 11,549 | ' |
Total Liabilities | ' | ' | ' | 354,708 | ' |
Total Purchase Price | ' | ' | ' | 42,322 | ' |
Cash and cash equivalents | 0 | 42,172 | 0 | 42,172 | ' |
Stock option payout to PC Bancorp employees and Directors | 0 | -455 | 0 | -455 | ' |
Fractional shares payout | 0 | -1 | 0 | -1 | ' |
Cash and cash equivalents acquired, net of cash paid | $0 | $41,716 | $0 | $41,716 | ' |
Supplemental_Pro_Forma_Financi
Supplemental Pro Forma Financial Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Business Combinations [Abstract] | ' | ' |
Net Interest Income | $42,939 | $41,529 |
Net Income | $2,281 | $2,787 |
Diluted earnings per share | $0.21 | $0.27 |
Computation_of_Book_Value_and_2
Computation of Book Value and Tangible Book Value per Common Share (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | ' | ' |
Total Shareholders' Equity | $137,924 | $125,623 |
Less: Goodwill | 12,292 | 12,292 |
Less: Core deposit and leasehold right intangibles | 2,525 | 1,747 |
Tangible Shareholders' Equity | $123,107 | $111,584 |
Common shares issued and outstanding | 11,081,364 | 10,758,674 |
Book value per common share | $12.45 | $11.68 |
Tangible book value per common share | $11.11 | $10.37 |
Basic_and_Diluted_Earnings_per
Basic and Diluted Earnings per Common Share Computations (Detail) (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 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | $2,832 | $2,477 | $2,321 | $2,155 | $1,628 | ($932) | $525 | $506 | $9,785 | $1,727 | $1,467 |
Weighted average basic common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 10,567,436 | 8,283,599 | 6,460,104 |
Dilutive effect of potential common share issuances from stock options and restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | 269,425 | 127,150 | 175,758 |
Weighted average diluted common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 10,836,861 | 8,410,749 | 6,635,862 |
Basic | $0.26 | $0.24 | $0.22 | $0.21 | $0.16 | ($0.10) | $0.08 | $0.08 | $0.93 | $0.21 | $0.23 |
Diluted | $0.26 | $0.23 | $0.22 | $0.20 | $0.15 | ($0.10) | $0.08 | $0.07 | $0.90 | $0.21 | $0.22 |
Anti-dilutive shares not included in the calculation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 81,000 | 245,833 | 247,083 |
Amortized_Cost_and_Estimated_F
Amortized Cost and Estimated Fair Values of Investment Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | $106,836 | $115,784 |
Available-for-sale Securities, Gross Unrealized Gains | 1,535 | 2,389 |
Available-for-sale Securities, Gross Unrealized Losses | 1,883 | 56 |
Available-for-sale Securities, Net Non-credit Gains on Other-than-temporarily Impaired Securities | 0 | 36 |
Estimated Fair Value | 106,488 | 118,153 |
U S Govt Agency-GNMA Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 28,107 | 22,237 |
Available-for-sale Securities, Gross Unrealized Gains | 180 | 728 |
Available-for-sale Securities, Gross Unrealized Losses | 909 | 5 |
Available-for-sale Securities, Net Non-credit Gains on Other-than-temporarily Impaired Securities | 0 | 0 |
Estimated Fair Value | 27,378 | 22,960 |
Corporate Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 5,086 | 10,311 |
Available-for-sale Securities, Gross Unrealized Gains | 125 | 235 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Net Non-credit Gains on Other-than-temporarily Impaired Securities | 0 | 0 |
Estimated Fair Value | 5,211 | 10,546 |
Municipal Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 3,621 | 6,831 |
Available-for-sale Securities, Gross Unrealized Gains | 9 | 3 |
Available-for-sale Securities, Gross Unrealized Losses | 2 | 18 |
Available-for-sale Securities, Net Non-credit Gains on Other-than-temporarily Impaired Securities | 0 | 0 |
Estimated Fair Value | 3,628 | 6,816 |
U.S. Govt Agency and Sponsored Agency-Note Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 4,153 | 18,888 |
Available-for-sale Securities, Gross Unrealized Gains | 1 | 24 |
Available-for-sale Securities, Gross Unrealized Losses | 2 | 1 |
Available-for-sale Securities, Net Non-credit Gains on Other-than-temporarily Impaired Securities | 0 | 0 |
Estimated Fair Value | 4,152 | 18,911 |
U S Govt Agency-SBA Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 50,521 | 42,308 |
Available-for-sale Securities, Gross Unrealized Gains | 875 | 703 |
Available-for-sale Securities, Gross Unrealized Losses | 491 | 32 |
Available-for-sale Securities, Net Non-credit Gains on Other-than-temporarily Impaired Securities | 0 | 0 |
Estimated Fair Value | 50,905 | 42,979 |
U.S. Govt Sponsored Agency-CMO and Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 15,348 | 12,335 |
Available-for-sale Securities, Gross Unrealized Gains | 345 | 696 |
Available-for-sale Securities, Gross Unrealized Losses | 479 | 0 |
Available-for-sale Securities, Net Non-credit Gains on Other-than-temporarily Impaired Securities | 0 | 0 |
Estimated Fair Value | 15,214 | 13,031 |
Collateralized Mortgage Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | ' | 2,874 |
Available-for-sale Securities, Gross Unrealized Gains | ' | 0 |
Available-for-sale Securities, Gross Unrealized Losses | ' | 0 |
Available-for-sale Securities, Net Non-credit Gains on Other-than-temporarily Impaired Securities | ' | 36 |
Estimated Fair Value | ' | $2,910 |
Investment_Securities_Addition
Investment Securities - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Collateralized Mortgage Obligations | Collateralized Mortgage Obligations | PC Bancorp | PC Bancorp | San Francisco | San Francisco | ||||
Securities | Securities | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of securities pledged to secure securities sold under agreements to repurchase | $11,800,000 | $23,300,000 | ' | ' | ' | ' | ' | ' | ' |
Market value of securities pledged to secure a certificate of deposit | 11,000,000 | 11,000,000 | ' | ' | ' | ' | ' | ' | ' |
Certificate of deposit | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Market value of securities pledged to secure standby letters of credit | 29,300,000 | 16,000,000 | ' | ' | ' | ' | ' | ' | ' |
Outstanding standby letters | 21,900,000 | 12,700,000 | ' | ' | ' | ' | ' | ' | ' |
Market value of securities pledged to secure local agency deposits | 275,000 | 281,000 | ' | ' | ' | ' | ' | ' | ' |
Other than temporary impairment credit loss | 0 | 155,000 | 264,000 | ' | ' | ' | ' | ' | ' |
Number of private issue collateralized mortgage obligation securities | ' | ' | ' | ' | 6 | ' | ' | ' | ' |
Number of securities sold | ' | ' | ' | 6 | 0 | ' | ' | ' | ' |
Gain on sale of securities, net | 47,000 | 0 | 219,000 | 5,000 | ' | ' | ' | ' | ' |
Net gains and (losses) on sales of available for sale securities | 7,000,000 | 17,300,000 | 4,800,000 | ' | ' | ' | ' | ' | ' |
Company's investment in the common stock of the FHLB | 4,700,000 | 4,900,000 | ' | ' | ' | ' | ' | ' | ' |
Cash dividends received | ' | ' | ' | ' | ' | ' | ' | 199,000 | 49,000 |
Acquired common stock of FHLB | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' |
Capital stock redemption | ($150,000) | ($866,000) | ($587,000) | ' | ' | $150,300 | $187,200 | ' | ' |
Investment_Securities_with_Unr
Investment Securities with Unrealized Losses Considered to be Temporarily Impaired or Other than Temporarily Impaired (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | $38,963 | $15,752 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 1,883 | 56 |
Other-than-temporarily impaired available-for-sale investment securities, Net Unrealized Loss | ' | 121 |
Total temporarily-impaired and other-than-temporarily impaired available-for-sale investment securities | ' | 16,987 |
U S Govt Agency-GNMA Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 17,557 | ' |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 909 | ' |
U.S. Govt Agency and Sponsored Agency-Note Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 1,041 | 2,209 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 2 | 1 |
U S Govt Agency-SBA Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 11,686 | 5,124 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 491 | 32 |
U.S. Govt Sponsored Agency-CMO and Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 7,650 | 2,126 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 479 | 5 |
Municipal Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 1,029 | 6,293 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 2 | 18 |
Collateralized Mortgage Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Other-than-temporarily impaired available-for-sale investment securities, Fair Value | ' | 1,235 |
Other-than-temporarily impaired available-for-sale investment securities, Net Unrealized Loss | ' | 65 |
Less Than Twelve Months | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 36,070 | 15,752 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 1,693 | 56 |
Other-than-temporarily impaired available-for-sale investment securities, Net Unrealized Loss | ' | 56 |
Total temporarily-impaired and other-than-temporarily impaired available-for-sale investment securities | ' | 15,752 |
Less Than Twelve Months | U S Govt Agency-GNMA Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 15,693 | ' |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 721 | ' |
Less Than Twelve Months | U.S. Govt Agency and Sponsored Agency-Note Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 1,041 | 2,209 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 2 | 1 |
Less Than Twelve Months | U S Govt Agency-SBA Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 11,686 | 5,124 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 491 | 32 |
Less Than Twelve Months | U.S. Govt Sponsored Agency-CMO and Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 7,650 | 2,126 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 479 | 5 |
Less Than Twelve Months | Municipal Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 0 | 6,293 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 0 | 18 |
Less Than Twelve Months | Collateralized Mortgage Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Other-than-temporarily impaired available-for-sale investment securities, Fair Value | ' | 0 |
Other-than-temporarily impaired available-for-sale investment securities, Net Unrealized Loss | ' | 0 |
More Than Twelve Months | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 2,893 | 0 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 190 | 0 |
Other-than-temporarily impaired available-for-sale investment securities, Net Unrealized Loss | ' | 65 |
Total temporarily-impaired and other-than-temporarily impaired available-for-sale investment securities | ' | 1,235 |
More Than Twelve Months | U S Govt Agency-GNMA Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 1,864 | ' |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 188 | ' |
More Than Twelve Months | U.S. Govt Agency and Sponsored Agency-Note Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 0 | 0 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 0 | 0 |
More Than Twelve Months | U S Govt Agency-SBA Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 0 | 0 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 0 | 0 |
More Than Twelve Months | U.S. Govt Sponsored Agency-CMO and Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 0 | 0 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 0 | 0 |
More Than Twelve Months | Municipal Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Temporarily-impaired available-for-sale investment securities, Fair Value | 1,029 | 0 |
Temporarily-impaired available-for-sale investment securities, Net Unrealized Loss | 2 | 0 |
More Than Twelve Months | Collateralized Mortgage Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Other-than-temporarily impaired available-for-sale investment securities, Fair Value | ' | 1,235 |
Other-than-temporarily impaired available-for-sale investment securities, Net Unrealized Loss | ' | $65 |
Maturities_Schedule_of_Securit
Maturities Schedule of Securities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Investments Debt And Equity Securities [Abstract] | ' | ' |
Due through one year, Amortized Cost | $17,574 | ' |
Due after one year through five years, Amortized Cost | 37,733 | ' |
Due after five years through ten years, Amortized Cost | 25,486 | ' |
Due after ten years, Amortized Cost | 26,043 | ' |
Total, Amortized Cost | 106,836 | ' |
Due through one year, Fair Value | 17,759 | ' |
Due after one year through five years, Fair Value | 38,168 | ' |
Due after five years through ten years, Fair Value | 24,952 | ' |
Due after ten years, Fair Value | 25,609 | ' |
Estimated Fair Value | $106,488 | $118,153 |
Due through one year, Weighted Average Yield | 1.69% | ' |
Due after one year through five years, Weighted Average Yield | 2.04% | ' |
Due after five years through ten years, Weighted Average Yield | 2.41% | ' |
Due after ten years, Weighted Average Yield | 2.75% | ' |
Total, Weighted Average Yield | 2.24% | ' |
Summary_of_Activity_Related_to
Summary of Activity Related to Credit Component Recognized in Earnings on Investment Securities Held (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments Debt And Equity Securities [Abstract] | ' | ' | ' |
Balance at the beginning of the period, January 1, | $871 | $973 | $914 |
Credit valuation security impairment charge (gain on sale) and recorded through the Statement of Income | -5 | 155 | 264 |
Total cumulative inception to date valuation impairment charge on securities | 866 | 1,128 | 1,178 |
Less actual credit loss recognized from sale of securities | -866 | 0 | 0 |
Less actual credit loss recognized on principal | 0 | -257 | -205 |
Total credit loss recognized on securities | -866 | -257 | -205 |
Balance at the end of the period, December 31, | $0 | $871 | $973 |
Composition_of_Loan_Portfolio_
Composition of Loan Portfolio (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Receivable [Line Items] | ' | ' |
Commercial and Industrial Loans: | $299,473 | $262,637 |
Loans Secured by Real Estate: | ' | ' |
Loans Secured by Real Estate | 615,988 | 570,469 |
Other Loans: | 17,733 | 21,779 |
Total Loans | 933,194 | 854,885 |
Owner-Occupied Nonresidential Properties | ' | ' |
Loans Secured by Real Estate: | ' | ' |
Loans Secured by Real Estate | 197,605 | 181,844 |
Other Nonresidential Properties | ' | ' |
Loans Secured by Real Estate: | ' | ' |
Loans Secured by Real Estate | 271,818 | 246,450 |
Construction, Land Development and Other Land | ' | ' |
Loans Secured by Real Estate: | ' | ' |
Loans Secured by Real Estate | 47,074 | 48,528 |
1-4 Family Residential Properties | ' | ' |
Loans Secured by Real Estate: | ' | ' |
Loans Secured by Real Estate | 65,711 | 62,037 |
Multifamily Residential Properties | ' | ' |
Loans Secured by Real Estate: | ' | ' |
Loans Secured by Real Estate | $33,780 | $31,610 |
Loans_Additional_Information_D
Loans - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Loans Receivable [Line Items] | ' | ' |
Loan to value ratio | 75.00% | ' |
Loans held for sale | $0 | ' |
Unfunded loan commitments | 345,900,000 | 295,200,000 |
Allowance for loss on unfunded loan commitments | 329,000 | 256,000 |
Credit Impaired Loans | 9,556,000 | 10,530,000 |
Credit impaired notes | 923,397,000 | 840,446,000 |
Credit Quality Portion | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Credit purchase impaired loan | 4,300,000 | 6,900,000 |
Purchased Credit Impaired loans | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Credit Impaired Loans | 3,200,000 | 4,900,000 |
Credit impaired notes | 1,100,000 | 2,000,000 |
SBA Servicing Asset | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loans sold | 76,100,000 | ' |
SBA Servicing Asset | PC Bancorp | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Total loans | 111,500,000 | ' |
Sba 7a Loans [Member] | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Total loans | 1,800,000 | ' |
Loans sold | 1,300,000 | ' |
Secured Commercial Loan | Real Estate Collateral Dependent Loans | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loan concentration percentage | 66.00% | ' |
Secured Commercial Loan | First Trust Deed Lien | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loan concentration percentage | 90.90% | ' |
Secured Commercial Loan | Second Trust Deed Lien | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loan concentration percentage | 9.10% | ' |
Secured Commercial Loan | Owner-Occupied Nonresidential Properties | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loan concentration percentage | 32.10% | ' |
Secured Commercial Loan | Business property | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loan concentration percentage | 24.60% | ' |
Unsecured Commercial Loan | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loan concentration percentage | 8.00% | ' |
Debt Instrument Remaining Loans | SBA Servicing Asset | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loans sold | 35,400,000 | ' |
Debt Instrument Un-guaranteed Loans | SBA Servicing Asset | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loans sold | 24,600,000 | ' |
Debt Instrument Guaranteed Loans | SBA Servicing Asset | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Loans sold | $10,800,000 | ' |
Companys_Gross_Loans_Stratifie
Company's Gross Loans, Stratified by Industry Concentration of Borrower (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Receivable [Line Items] | ' | ' |
Gross loans | $933,194 | $854,885 |
Real Estate | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 381,830 | 312,625 |
Manufacturing | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 83,319 | 77,203 |
Hotel/Lodging | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 76,143 | 82,483 |
Construction | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 62,835 | 55,385 |
Wholesale | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 60,291 | 54,218 |
Professional Services | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 49,739 | 44,714 |
Finance | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 46,393 | 59,791 |
Healthcare | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 38,662 | 41,857 |
Restaurant/Food Service | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 35,244 | 24,105 |
Other Services | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 21,448 | 23,239 |
Retail | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 23,157 | 30,302 |
Administrative Management | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 15,218 | 19,078 |
Information | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 11,709 | 4,492 |
Education | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 10,270 | 4,843 |
Transportation | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 9,531 | 11,431 |
Entertainment | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | 6,207 | 8,132 |
Other | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Gross loans | $1,198 | $987 |
Summary_of_Activity_for_Allowa
Summary of Activity for Allowance for Loan Loss (Detail) (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 |
Receivables [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan loss at beginning of year | ' | ' | ' | $8,803 | ' | ' | ' | $7,495 | $8,803 | $7,495 | $5,860 |
Provision for loan losses | 934 | 631 | 1,153 | 134 | 867 | 521 | 380 | 0 | 2,852 | 1,768 | 1,442 |
Net (charge-offs) recoveries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -1,912 | -687 | -593 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 860 | 227 | 786 |
Net (charge-offs) recoveries | ' | ' | ' | ' | ' | ' | ' | ' | -1,052 | -460 | 193 |
Allowance for loan loss at end of year | $10,603 | ' | ' | ' | $8,803 | ' | ' | ' | $10,603 | $8,803 | $7,495 |
Net (charge-offs) recoveries to average loans | ' | ' | ' | ' | ' | ' | ' | ' | -0.12% | -0.08% | 0.04% |
Allowance for loan loss to total loans | 1.14% | ' | ' | ' | 1.03% | ' | ' | ' | 1.14% | 1.03% | 1.53% |
Allowance for loan loss to total loans accounted for at historical cost, which excludes purchased loans acquired by acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.54% | 1.75% |
Changes_in_Allowance_for_Loan_
Changes in Allowance for Loan Loss (Detail) (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 |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan loss at beginning of year | ' | ' | ' | $8,803 | ' | ' | ' | $7,495 | $8,803 | $7,495 | $5,860 |
Provision for loan losses | 934 | 631 | 1,153 | 134 | 867 | 521 | 380 | 0 | 2,852 | 1,768 | 1,442 |
Net (charge-offs) recoveries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -1,912 | -687 | -593 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 860 | 227 | 786 |
Total net (charge-offs) recoveries | ' | ' | ' | ' | ' | ' | ' | ' | -1,052 | -460 | 193 |
Allowance for loan loss at end of year | 10,603 | ' | ' | ' | 8,803 | ' | ' | ' | 10,603 | 8,803 | 7,495 |
Commercial and Industrial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan loss at beginning of year | ' | ' | ' | 4,572 | ' | ' | ' | 3,541 | 4,572 | 3,541 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 2,596 | 1,399 | ' |
Net (charge-offs) recoveries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -1,704 | -444 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 70 | 76 | ' |
Total net (charge-offs) recoveries | ' | ' | ' | ' | ' | ' | ' | ' | -1,634 | -368 | ' |
Allowance for loan loss at end of year | 5,534 | ' | ' | ' | 4,572 | ' | ' | ' | 5,534 | 4,572 | ' |
Construction, Land Development and Other Land | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan loss at beginning of year | ' | ' | ' | 2,035 | ' | ' | ' | 752 | 2,035 | 752 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -1,678 | 1,283 | ' |
Net (charge-offs) recoveries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 763 | 0 | ' |
Total net (charge-offs) recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 763 | 0 | ' |
Allowance for loan loss at end of year | 1,120 | ' | ' | ' | 2,035 | ' | ' | ' | 1,120 | 2,035 | ' |
Commercial and Other Real Estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan loss at beginning of year | ' | ' | ' | 2,084 | ' | ' | ' | 2,911 | 2,084 | 2,911 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 1,990 | -733 | ' |
Net (charge-offs) recoveries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -200 | -233 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 12 | 139 | ' |
Total net (charge-offs) recoveries | ' | ' | ' | ' | ' | ' | ' | ' | -188 | -94 | ' |
Allowance for loan loss at end of year | 3,886 | ' | ' | ' | 2,084 | ' | ' | ' | 3,886 | 2,084 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan loss at beginning of year | ' | ' | ' | 112 | ' | ' | ' | 291 | 112 | 291 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -56 | -181 | ' |
Net (charge-offs) recoveries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -10 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 12 | ' |
Total net (charge-offs) recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 2 | ' |
Allowance for loan loss at end of year | $63 | ' | ' | ' | $112 | ' | ' | ' | $63 | $112 | ' |
Schedule_Represents_both_Allow
Schedule Represents both Allowance for Loan Loss and Associated Loan Balance Classified by Loan Portfolio Segment and by Credit Evaluation Methodology (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' |
Ending balance: Individually evaluated for impairment | $4 | $11 |
Ending balance: Collectively evaluated for impairment | 10,589 | 8,783 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 10 | 9 |
Total Allowance for Loan Loss | 10,603 | 8,803 |
Loans receivable: | ' | ' |
Ending balance: Individually evaluated for impairment | 6,320 | 5,584 |
Ending balance: Collectively evaluated for impairment | 922,546 | 842,397 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 4,328 | 6,904 |
Total Loans Receivable | 933,194 | 854,885 |
Commercial and Industrial | ' | ' |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' |
Ending balance: Individually evaluated for impairment | 4 | 11 |
Ending balance: Collectively evaluated for impairment | 5,520 | 4,552 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 10 | 9 |
Total Allowance for Loan Loss | 5,534 | 4,572 |
Loans receivable: | ' | ' |
Ending balance: Individually evaluated for impairment | 2,640 | 885 |
Ending balance: Collectively evaluated for impairment | 295,787 | 260,982 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 1,046 | 770 |
Total Loans Receivable | 299,473 | 262,637 |
Construction, Land Development and Other Land | ' | ' |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' |
Ending balance: Individually evaluated for impairment | 0 | 0 |
Ending balance: Collectively evaluated for impairment | 1,120 | 2,035 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 0 |
Total Allowance for Loan Loss | 1,120 | 2,035 |
Loans receivable: | ' | ' |
Ending balance: Individually evaluated for impairment | 0 | 1,201 |
Ending balance: Collectively evaluated for impairment | 47,074 | 47,327 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 0 |
Total Loans Receivable | 47,074 | 48,528 |
Commercial and Other Real Estate | ' | ' |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' |
Ending balance: Individually evaluated for impairment | 0 | 0 |
Ending balance: Collectively evaluated for impairment | 3,886 | 2,084 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 0 |
Total Allowance for Loan Loss | 3,886 | 2,084 |
Loans receivable: | ' | ' |
Ending balance: Individually evaluated for impairment | 3,680 | 3,498 |
Ending balance: Collectively evaluated for impairment | 561,952 | 512,313 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 3,282 | 6,130 |
Total Loans Receivable | 568,914 | 521,941 |
Other | ' | ' |
Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment [Line Items] | ' | ' |
Ending balance: Individually evaluated for impairment | 0 | 0 |
Ending balance: Collectively evaluated for impairment | 63 | 112 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 0 |
Total Allowance for Loan Loss | 63 | 112 |
Loans receivable: | ' | ' |
Ending balance: Individually evaluated for impairment | 0 | 0 |
Ending balance: Collectively evaluated for impairment | 17,733 | 21,775 |
Ending balance: Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 4 |
Total Loans Receivable | $17,733 | $21,779 |
Risk_Category_of_Loans_by_Clas
Risk Category of Loans by Class of Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Receivable [Line Items] | ' | ' |
Commercial and Industrial | $299,473 | $262,637 |
Construction, Land Development and Other Land | 47,074 | 48,528 |
Commercial and Other Real Estate | 568,914 | 521,941 |
Other | 17,733 | 21,779 |
Total | 933,194 | 854,885 |
Pass | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Commercial and Industrial | 289,594 | 250,624 |
Construction, Land Development and Other Land | 47,074 | 47,328 |
Commercial and Other Real Estate | 547,600 | 493,768 |
Other | 17,731 | 21,655 |
Total | 901,999 | 813,375 |
Special Mention | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Commercial and Industrial | 1,540 | 4,602 |
Construction, Land Development and Other Land | 0 | 0 |
Commercial and Other Real Estate | 2,613 | 5,300 |
Other | 0 | 0 |
Total | 4,153 | 9,902 |
Substandard | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Commercial and Industrial | 8,339 | 7,411 |
Construction, Land Development and Other Land | 0 | 1,200 |
Commercial and Other Real Estate | 18,701 | 22,873 |
Other | 2 | 119 |
Total | 27,042 | 31,603 |
Doubtful | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Commercial and Industrial | 0 | 0 |
Construction, Land Development and Other Land | 0 | 0 |
Commercial and Other Real Estate | 0 | 0 |
Other | 0 | 5 |
Total | $0 | $5 |
Aging_Analysis_of_Recorded_Inv
Aging Analysis of Recorded Investment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Receivable [Line Items] | ' | ' |
31-60 Days Past Due | $0 | $3,909 |
61-90 Days Past Due | 241 | 0 |
Greater than 90 Days Past Due and Accruing | 0 | 0 |
Total Past Due and Accruing | 241 | 3,909 |
Total Non Accrual | 9,556 | 10,530 |
Current | 923,397 | 840,446 |
Total Loans | 933,194 | 854,885 |
Commercial and Industrial | ' | ' |
Loans Receivable [Line Items] | ' | ' |
31-60 Days Past Due | 0 | 1,025 |
61-90 Days Past Due | 241 | 0 |
Greater than 90 Days Past Due and Accruing | 0 | 0 |
Total Past Due and Accruing | 241 | 1,025 |
Total Non Accrual | 3,682 | 1,583 |
Current | 295,550 | 260,029 |
Total Loans | 299,473 | 262,637 |
Construction, Land Development and Other Land | ' | ' |
Loans Receivable [Line Items] | ' | ' |
31-60 Days Past Due | 0 | 0 |
61-90 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due and Accruing | 0 | 0 |
Total Past Due and Accruing | 0 | 0 |
Total Non Accrual | 0 | 1,200 |
Current | 47,074 | 47,328 |
Total Loans | 47,074 | 48,528 |
Commercial and Other Real Estate | ' | ' |
Loans Receivable [Line Items] | ' | ' |
31-60 Days Past Due | 0 | 2,884 |
61-90 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due and Accruing | 0 | 0 |
Total Past Due and Accruing | 0 | 2,884 |
Total Non Accrual | 5,874 | 7,742 |
Current | 563,040 | 511,315 |
Total Loans | 568,914 | 521,941 |
Other | ' | ' |
Loans Receivable [Line Items] | ' | ' |
31-60 Days Past Due | 0 | 0 |
61-90 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due and Accruing | 0 | 0 |
Total Past Due and Accruing | 0 | 0 |
Total Non Accrual | 0 | 5 |
Current | 17,733 | 21,774 |
Total Loans | $17,733 | $21,779 |
Recorded_Investment_and_Unpaid
Recorded Investment and Unpaid Principal Balances for Impaired Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | $6,320 | $5,584 |
Unpaid Principal Balance | 11,814 | 9,075 |
Related Allowance | 4 | 11 |
Average Recorded Investment | 7,067 | 3,839 |
Interest Income Recognized | 0 | 0 |
Commercial and Industrial | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | 2,640 | 885 |
Unpaid Principal Balance | 5,702 | 1,953 |
Related Allowance | 4 | 11 |
Average Recorded Investment | 1,972 | 821 |
Interest Income Recognized | 0 | 0 |
Construction, Land Development and Other Land | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | 0 | 1,201 |
Unpaid Principal Balance | 0 | 2,791 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 879 | 1,235 |
Interest Income Recognized | 0 | 0 |
Commercial and Other Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | 3,680 | 3,498 |
Unpaid Principal Balance | 6,112 | 4,331 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 4,216 | 1,783 |
Interest Income Recognized | 0 | 0 |
With no specific allowance recorded | Commercial and Industrial | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | 2,540 | 677 |
Unpaid Principal Balance | 5,347 | 1,490 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 1,835 | 646 |
Interest Income Recognized | 0 | 0 |
With no specific allowance recorded | Construction, Land Development and Other Land | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | 0 | 1,201 |
Unpaid Principal Balance | 0 | 2,791 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 879 | 1,235 |
Interest Income Recognized | 0 | 0 |
With no specific allowance recorded | Commercial and Other Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | 3,680 | 3,498 |
Unpaid Principal Balance | 6,112 | 4,331 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 4,216 | 1,252 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded | Commercial and Industrial | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | 100 | 208 |
Unpaid Principal Balance | 355 | 463 |
Related Allowance | 4 | 11 |
Average Recorded Investment | 137 | 175 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded | Commercial and Other Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment | ' | 0 |
Unpaid Principal Balance | ' | 0 |
Related Allowance | ' | 0 |
Average Recorded Investment | ' | 531 |
Interest Income Recognized | ' | $0 |
Additional_Information_on_Impa
Additional Information on Impaired Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | ' | ' |
Average recorded investment in impaired loans | $7,067 | $3,839 |
Interest foregone on impaired loans | 710 | 308 |
Cash collections applied to reduce principal balance | 5,057 | 111 |
Interest income recognized on cash collections | $0 | $0 |
Recorded_Investment_and_Unpaid1
Recorded Investment and Unpaid Principal Balances for Troubled Debt Restructuring Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded Investment | $6,320 | $5,584 |
Unpaid Principal Balance | 11,814 | 9,075 |
Commercial and Industrial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded Investment | 2,640 | 885 |
Unpaid Principal Balance | 5,702 | 1,953 |
Construction, Land Development and Other Land | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded Investment | 0 | 1,201 |
Unpaid Principal Balance | 0 | 2,791 |
Commercial and Other Real Estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded Investment | 3,680 | 3,498 |
Unpaid Principal Balance | 6,112 | 4,331 |
Troubled Debt Restructuring | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded Investment | 2,714 | 5,707 |
Unpaid Principal Balance | 3,628 | 8,291 |
Interest Income Recognized | 0 | 37 |
Troubled Debt Restructuring | Commercial and Industrial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded Investment | 541 | 314 |
Unpaid Principal Balance | 843 | 626 |
Interest Income Recognized | 0 | 5 |
Troubled Debt Restructuring | Construction, Land Development and Other Land | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded Investment | ' | 1,200 |
Unpaid Principal Balance | ' | 2,791 |
Interest Income Recognized | ' | 0 |
Troubled Debt Restructuring | Commercial and Other Real Estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded Investment | 2,173 | 4,193 |
Unpaid Principal Balance | 2,785 | 4,874 |
Interest Income Recognized | $0 | $32 |
Pre_and_Post_Modification_Reco
Pre and Post Modification Recorded Investment in Troubled Debt Restructuring Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Loan | Loan | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 1 | 2 |
Pre-Modification Recorded Investment | $310 | $2,366 |
Post-Modification Recorded Investment | 310 | 2,366 |
Reduced Interest Rate and Lengthened Amortization | Commercial and Industrial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 1 | 1 |
Pre-Modification Recorded Investment | 310 | 60 |
Post-Modification Recorded Investment | 310 | 60 |
Reduced Interest Rate and Lengthened Amortization | Commercial Real Estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 0 | 1 |
Pre-Modification Recorded Investment | 0 | 2,306 |
Post-Modification Recorded Investment | $0 | $2,306 |
Accretable_Yield_for_Loans_Acq
Accretable Yield for Loans Acquired (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 |
Receivables [Abstract] | ' | ' | ' |
Balance, beginning of year | $12,189 | $2,585 | $12,315 |
Accretion, included in interest income | -3,754 | -2,785 | ' |
Additions, due to acquisition | 0 | 12,315 | ' |
Sold acquired loans | 0 | 284 | ' |
Reclassifications to non-accretable yield | -523 | -210 | ' |
Balance, end of year | $7,912 | $12,189 | $12,315 |
Fair_Value_of_Purchased_Credit
Fair Value of Purchased Credit Impaired and Other Purchased Loans (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans [Line Items] | ' | ' | ' | ' |
Contractually required payments | $292,528 | ' | ' | ' |
Less: non-accretable difference | -2,219 | ' | ' | ' |
Cash flows expected to be collected (undiscounted) | 290,309 | ' | ' | ' |
Accretable yield | -12,315 | -7,912 | -12,189 | -2,585 |
Fair value of purchased loans | 277,994 | ' | ' | ' |
Purchased Credit Impaired loans | ' | ' | ' | ' |
Loans [Line Items] | ' | ' | ' | ' |
Contractually required payments | 9,010 | ' | ' | ' |
Less: non-accretable difference | -2,219 | ' | ' | ' |
Cash flows expected to be collected (undiscounted) | 6,791 | ' | ' | ' |
Accretable yield | 0 | -395 | -9 | 0 |
Fair value of purchased loans | 6,791 | ' | ' | ' |
Other purchased loans | ' | ' | ' | ' |
Loans [Line Items] | ' | ' | ' | ' |
Contractually required payments | 283,518 | ' | ' | ' |
Less: non-accretable difference | 0 | ' | ' | ' |
Cash flows expected to be collected (undiscounted) | 283,518 | ' | ' | ' |
Accretable yield | -12,315 | ' | ' | ' |
Fair value of purchased loans | $271,203 | ' | ' | ' |
Carrying_Value_of_Purchased_Cr
Carrying Value of Purchased Credit Impaired Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Outstanding [Line Items] | ' | ' |
Unpaid Principal Balance | $11,814 | $9,075 |
Carrying Value | 6,320 | 5,584 |
Purchased Credit Impaired loans | ' | ' |
Debt Outstanding [Line Items] | ' | ' |
Unpaid Principal Balance | 7,210 | 10,718 |
Carrying Value | 4,328 | 6,904 |
Purchased Credit Impaired loans | Commercial and Industrial | ' | ' |
Debt Outstanding [Line Items] | ' | ' |
Unpaid Principal Balance | 1,599 | 1,221 |
Carrying Value | 1,046 | 770 |
Purchased Credit Impaired loans | Commercial and Other Real Estate | ' | ' |
Debt Outstanding [Line Items] | ' | ' |
Unpaid Principal Balance | 5,611 | 9,424 |
Carrying Value | 3,282 | 6,130 |
Purchased Credit Impaired loans | Other | ' | ' |
Debt Outstanding [Line Items] | ' | ' |
Unpaid Principal Balance | 0 | 73 |
Carrying Value | $0 | $4 |
Accretable_Net_Discount_of_Pur
Accretable Net Discount of Purchased Credit Impaired Loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 |
Acquired Impaired Loans Change In Accretable Yield [Line Items] | ' | ' | ' |
Balance, beginning of year | $12,189 | $2,585 | $12,315 |
Accretion, included in interest income | -3,754 | -2,785 | ' |
Balance, end of year | 7,912 | 12,189 | 12,315 |
Purchased Credit Impaired loans | ' | ' | ' |
Acquired Impaired Loans Change In Accretable Yield [Line Items] | ' | ' | ' |
Balance, beginning of year | 9 | 0 | 0 |
Accretion, included in interest income | -33 | 0 | ' |
Reclassifications from non-accretable yield | 419 | 9 | ' |
Balance, end of year | $395 | $9 | $0 |
Summary_of_Premises_and_Equipm
Summary of Premises and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment Net [Abstract] | ' | ' |
Furniture and equipment | $5,252 | $6,989 |
Leasehold improvements | 6,730 | 4,747 |
Total | 11,982 | 11,736 |
Less: Accumulated depreciation and amortization | -8,451 | -8,314 |
Total | $3,531 | $3,422 |
Premises_and_Equipment_and_Lea2
Premises and Equipment and Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property Plant And Equipment Net [Abstract] | ' | ' | ' |
Depreciation | $1,082,000 | $1,022,000 | $1,006,000 |
Rental expense on facilities | $2,197,000 | $1,764,000 | $1,445,000 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments for Operating Leases for Office and Branch Space Based Upon Obligations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Abstract] | ' |
2014 | $2,041 |
2015 | 2,200 |
2016 | 2,058 |
2017 | 1,981 |
2018 | 1,131 |
Thereafter | 3,595 |
Total | $13,006 |
Goodwill_Core_Deposit_and_Leas2
Goodwill, Core Deposit and Leasehold Right Intangibles - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Jul. 31, 2012 | |
Leasehold Right Intangibles | Leasehold Right Intangibles | PC Bancorp | PC Bancorp | PC Bancorp | |||||
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $12,292,000 | $12,292,000 | $12,292,000 | ' | ' | ' | ' | $6,100,000 | $6,137,000 |
Goodwill acquisition during period | ' | ' | ' | ' | ' | ' | 6,100,000 | ' | ' |
Goodwill, impairment | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Weighted average amortization period | '7 years | '7 years | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization expense, One | 266,000 | 266,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization expense, Two | 246,000 | 246,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization expense, Three | 234,000 | 234,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization expense, Four | 227,000 | 227,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization expense, Five | 220,000 | 220,000 | ' | ' | ' | ' | ' | ' | ' |
Leasehold right intangibles | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' |
Amortization on leasehold right intangibles | ' | $313,000 | $315,000 | $174,000 | $313,000 | $315,000 | ' | ' | ' |
Changes_in_Gross_Amounts_of_Co
Changes in Gross Amounts of Core Deposit Intangibles and Related Accumulated Amortization (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accumulated Amortization: | ' | ' | ' |
Amortization | $313,000 | $315,000 | $174,000 |
Core Deposit Intangible | ' | ' | ' |
Gross amount of CDI: | ' | ' | ' |
Balance, beginning of year | 2,103,000 | 1,098,000 | 1,098,000 |
Additions due to acquisitions | 0 | 1,005,000 | 0 |
Balance, end of year | 2,103,000 | 2,103,000 | 1,098,000 |
Accumulated Amortization: | ' | ' | ' |
Balance, beginning of year | -356,000 | -137,000 | 0 |
Amortization | -309,000 | -219,000 | -137,000 |
Balance, end of year | -665,000 | -356,000 | -137,000 |
Net CDI, end of year | $1,438,000 | $1,747,000 | $961,000 |
Bank_Owned_Life_Insurance_Addi
Bank Owned Life Insurance - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Entity | |||
Insurance [Line Items] | ' | ' | ' |
Bank-Owned Life Insurance, holding amount | $21,200,000 | $20,583,000 | ' |
Non-interest income on BOLI policies | 617,000 | 267,000 | 105,000 |
Increase in cash surrender values on policies | 617,000 | 17,900,000 | ' |
Payments for new BOLI premiums | 0 | 14,000,000 | 0 |
Number of insurance companies | 5 | ' | ' |
PC Bancorp | ' | ' | ' |
Insurance [Line Items] | ' | ' | ' |
Holding amount, result of acquisition | ' | $3,700,000 | ' |
Maximum | ' | ' | ' |
Insurance [Line Items] | ' | ' | ' |
Bank-Owned Life Insurance balances, outstanding percentage | 40.30% | ' | ' |
Minimum | ' | ' | ' |
Insurance [Line Items] | ' | ' | ' |
Bank-Owned Life Insurance balances, outstanding percentage | 1.50% | ' | ' |
Investment_in_California_Organ1
Investment in California Organized Investment Network "COIN" - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2012 | |
Investment | Investment | |||
Investment [Line Items] | ' | ' | ' | ' |
Investment with Clearinghouse | ' | $1,100,000 | $1,000,000 | ' |
Investment period | ' | '60 months | '60 months | ' |
Interest rate of investment | 0.00% | ' | 0.00% | ' |
Amount qualified for Investment Tax Credit | ' | 640,000 | 200,000 | ' |
Number of investment | ' | 2 | ' | 1 |
Investment qualification for income tax credit as a percentage | ' | 20.00% | ' | ' |
Maturity year of the Investment | ' | '2018 | '2014 | ' |
Rural Community Assistance Corporation | ' | ' | ' | ' |
Investment [Line Items] | ' | ' | ' | ' |
Investment with Clearinghouse | ' | 1,000,000 | ' | ' |
Interest rate of investment | ' | 0.00% | ' | ' |
Amount qualified for Investment Tax Credit | ' | 200,000 | ' | ' |
Pacific Coast Regional Small Business Development Corporation [Member] | ' | ' | ' | ' |
Investment [Line Items] | ' | ' | ' | ' |
Investment with Clearinghouse | ' | 75,000 | ' | ' |
Amount qualified for Investment Tax Credit | ' | $15,000 | ' | ' |
Investments_in_Qualified_Affor
Investments in Qualified Affordable Housing Projects - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2009 | |
Investment Holdings [Line Items] | ' | ' |
Investment cost | $4,510,000 | ' |
Investment in funding obligation | 3,990,000 | ' |
Tax credit and benefits | 640,000 | 200,000 |
Amortization of investment | 485,000 | ' |
Net income tax benefits | 155,000 | ' |
Additional tax benefits operating losses | 99,000 | ' |
Funding commitment | 4,000,000 | ' |
Low Income Housing Tax Credit Investment Projects | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment cost | 4,510,000 | ' |
Investment in funding obligation | 3,990,000 | ' |
Investment benefits in years | '10 years | ' |
Housing Projects | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Tax credit and benefits | $541,000 | ' |
Minimum | Low Income Housing Tax Credit Investment Projects | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Return in investment | 5.00% | ' |
Maximum | Low Income Housing Tax Credit Investment Projects | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Return in investment | 6.00% | ' |
Schedule_of_Companys_Original_
Schedule of Company's Original Investment in Affordable Housing Project (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2009 | |
Investment Holdings [Line Items] | ' | ' |
Original Investment Value | $5,050,000 | ' |
Current Recorded Investment | 4,510,000 | ' |
Unfunded Liability Obligation | 3,990,000 | ' |
Tax Credits and Benefits | 640,000 | 200,000 |
Amortization of Investments | 485,000 | ' |
Net Income Tax Benefit | 155,000 | ' |
Enterprise Green Communities West II LP | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Original Investment Value | 1,000,000 | ' |
Current Recorded Investment | 787,000 | ' |
Unfunded Liability Obligation | 190,000 | ' |
Tax Credits and Benefits | 236,000 | ' |
Amortization of Investments | 160,000 | ' |
Net Income Tax Benefit | 76,000 | ' |
Enterprise Housing Partners Calgreen II Fund LP | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Original Investment Value | 2,050,000 | ' |
Current Recorded Investment | 1,735,000 | ' |
Unfunded Liability Obligation | 1,817,000 | ' |
Tax Credits and Benefits | 390,000 | ' |
Amortization of Investments | 314,000 | ' |
Net Income Tax Benefit | 76,000 | ' |
Enterprise Housing Partners XXIV LP | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Original Investment Value | 2,000,000 | ' |
Current Recorded Investment | 1,988,000 | ' |
Unfunded Liability Obligation | 1,983,000 | ' |
Tax Credits and Benefits | 14,000 | ' |
Amortization of Investments | 11,000 | ' |
Net Income Tax Benefit | $3,000 | ' |
Schedule_of_Anticipated_Income
Schedule of Anticipated Income Tax Benefit that is Expected to be Recognized (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Investments [Line Items] | ' |
2014 | $141 |
2015 | 135 |
2016 and thereafter | 1,079 |
Total-anticipated net income tax benefit in Qualified Affordable Housing Projects | 1,355 |
Enterprise Green Communities West II LP | ' |
Schedule of Investments [Line Items] | ' |
2014 | 43 |
2015 | 43 |
2016 and thereafter | 279 |
Total-anticipated net income tax benefit in Qualified Affordable Housing Projects | 365 |
Enterprise Housing Partners Calgreen II Fund LP | ' |
Schedule of Investments [Line Items] | ' |
2014 | 46 |
2015 | 40 |
2016 and thereafter | 332 |
Total-anticipated net income tax benefit in Qualified Affordable Housing Projects | 418 |
Enterprise Housing Partners XXIV LP | ' |
Schedule of Investments [Line Items] | ' |
2014 | 52 |
2015 | 52 |
2016 and thereafter | 468 |
Total-anticipated net income tax benefit in Qualified Affordable Housing Projects | $572 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | ||
Deposits [Line Items] | ' | ' |
Number of customers who maintained balances | 54 | ' |
Aggregate Deposits | $632,800,000 | ' |
Percentage of customer maintained balances out of total deposit base | 51.00% | ' |
Amount of time deposits | 61,200,000 | ' |
Amount of Time Deposits maturing in one year | 63,600,000 | ' |
Maturity of time deposits | '1 year | ' |
Certificates of deposit with balances $100,000 or more | 59,000,000 | 76,400,000 |
Deposits | 60,307,000 | 27,006,000 |
Certificate Of Deposit Account Registry Service | ' | ' |
Deposits [Line Items] | ' | ' |
Deposits | 28,900,000 | 14,000,000 |
Aggregating all related accounts, including multiple business entities and personal funds of business owners | Minimum | ' | ' |
Deposits [Line Items] | ' | ' |
Aggregate Deposits | 4,000,000 | ' |
Insured Cash Sweep | ' | ' |
Deposits [Line Items] | ' | ' |
Deposits | $4,500,000 | ' |
Borrowings_and_Subordinated_De2
Borrowings and Subordinated Debentures - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Borrowings [Line Items] | ' | ' |
Securities with a fair market value | $11,800,000 | $23,300,000 |
Credit facility, percentage of Bank's total assets | 25.00% | ' |
Credit facility, maximum borrowing capacity | 336,000,000 | ' |
Credit facility, loan collateral pledge | 841,000,000 | ' |
Credit facility borrowings collateral amount | 292,000,000 | ' |
Investment securities pledged with FHLB | 0 | ' |
Outstanding advances (borrowings) with FHLB | 0 | 0 |
FHLB Borrowings | 0 | 0 |
Common stock of FHLB | 4,700,000 | 4,900,000 |
Current value of FHLB common stock | 4,700,000 | ' |
Maximum advances by FHLB | 101,000,000 | ' |
Repurchased amount | 150,300 | 187,200 |
Subordinated debentures | 9,379,000 | 9,169,000 |
Issuance maturity period from its date of issue | '30 years | ' |
Subordinated debentures, fair value | 3,300,000 | ' |
Subordinated debentures, amortization expense | 209,700 | 94,400 |
Estimated annual amortization expense on subordinate debenture | 159,000 | ' |
Trust preferred securities tier one capital | 25.00% | ' |
Subordinate debentures, interest payment terms | 'The Company has the right, assuming no default has occurred, to defer payments of interest on the subordinated debentures at any time for a period not to exceed 20 consecutive quarters. | ' |
PC Bancorp | ' | ' |
Borrowings [Line Items] | ' | ' |
Acquisition of FHLB capital stock | ' | 1,900,000 |
Trust I | ' | ' |
Borrowings [Line Items] | ' | ' |
Subordinated debentures | 6,186,000 | ' |
Prepayment penalties | 0 | ' |
Trust II | ' | ' |
Borrowings [Line Items] | ' | ' |
Subordinated debentures | 3,093,000 | ' |
Prepayment penalties | 0 | ' |
Trust III | ' | ' |
Borrowings [Line Items] | ' | ' |
Subordinated debentures | 3,093,000 | ' |
Prepayment penalties | 0 | ' |
Subordinated debentures | ' | ' |
Borrowings [Line Items] | ' | ' |
Issuance maturity period from its date of issue | '22 years | ' |
PC Bancorp | ' | ' |
Borrowings [Line Items] | ' | ' |
Subordinated debentures | 12,400,000 | ' |
Minimum | ' | ' |
Borrowings [Line Items] | ' | ' |
Repurchase maturity date | '1 day | ' |
Maximum | ' | ' |
Borrowings [Line Items] | ' | ' |
Repurchase maturity date | '180 days | ' |
Short-term borrowings | $30,000,000 | $32,500,000 |
Terms_and_Maturity_of_Banks_Se
Terms and Maturity of Bank's Securities Sold under Agreements (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | $11,141 | $22,857 |
Interest Rate | 0.30% | 0.29% |
3-Dec-13 | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | 750 | ' |
Interest Rate | 0.10% | ' |
Original Term | '62 days | ' |
Maturity Date | 'February 3, 2014 | ' |
31-Dec-13 | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | 10,391 | ' |
Original Term | '2 days | ' |
Maturity Date | 'January 2, 2014 | ' |
December 31, 2013 | Minimum | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Interest Rate | 0.10% | ' |
December 31, 2013 | Maximum | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Interest Rate | 0.40% | ' |
5-Nov-12 | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | ' | 1,020 |
Interest Rate | ' | 0.15% |
Original Term | ' | '91 days |
Maturity Date | ' | 'February 4, 2013 |
31-Dec-12 | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | ' | $21,837 |
Original Term | ' | '1 day |
Maturity Date | ' | 'January 2, 2013 |
December 31, 2012 | Minimum | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Interest Rate | ' | 0.10% |
December 31, 2012 | Maximum | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Interest Rate | ' | 0.40% |
Subordinated_Debentures_Outsta
Subordinated Debentures Outstanding (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Unamortized fair value adjustment | ($2,993) | ' |
Amount | 9,379 | 9,169 |
Carrying (Reported) Amount, Fair Value Disclosure | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | 12,372 | ' |
Trust I | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | 6,186 | ' |
Issuance Date | 10-Dec-04 | ' |
Maturity Date | '03-15-2035 | ' |
Rate Index | '3 month LIBOR + 2.05 % | ' |
Current Rate | 2.29% | ' |
Next Reset Date | 17-Mar-14 | ' |
Trust II | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | 3,093 | ' |
Issuance Date | 23-Dec-05 | ' |
Maturity Date | '03-15-2036 | ' |
Rate Index | '3 month LIBOR + 1.75 % | ' |
Current Rate | 1.99% | ' |
Next Reset Date | 17-Mar-14 | ' |
Trust III | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Amount | $3,093 | ' |
Issuance Date | 30-Jun-06 | ' |
Maturity Date | '09-15-2036 | ' |
Rate Index | '3 month LIBOR + 1.85 % | ' |
Current Rate | 2.09% | ' |
Next Reset Date | 17-Mar-14 | ' |
ShortTerm_Borrowings_Detail
Short-Term Borrowings (Detail) (Securities sold under agreements to repurchase, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Securities sold under agreements to repurchase | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Balance | $11,141 | $22,857 |
Average Balance | $24,376 | $26,027 |
Weighted Average Rate | 0.30% | 0.35% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 5 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Derivative | Accounting Hedges | Interest Rate Swap Contracts Fair Value | Interest Rate Swaption | Interest Rate Swaption | |
Agreement | Agreement | ||||
Derivative [Line Items] | ' | ' | ' | ' | ' |
Number of pay-fixed, receive-variable interest rate swap agreements | 23 | ' | ' | ' | ' |
Acquisition of interest rate swap contracts | ' | ' | 31-Jul-12 | ' | ' |
Swap contracts acquired | 24 | ' | ' | ' | ' |
Swap contracts designated as interest rate hedges | ' | 21 | ' | ' | ' |
Total notional amount of the outstanding swap contracts | $31,900,000 | ' | ' | ' | ' |
Outstanding swaps original maturity period | '15 years | ' | ' | ' | ' |
Interest paid in interest rate swap | ' | ' | ' | 724,000 | 1,650,000 |
Change in the fair value of derivative instruments | ' | ' | 2,100,000 | ' | ' |
Certificates of deposit with other financial institutions pledged | 4,200,000 | ' | ' | ' | ' |
Non-interest bearing balances | 1,700,000 | ' | ' | ' | ' |
Due from bank | 6,000,000 | ' | ' | ' | ' |
Pledged collateral with interest rate swap counterparty bank | $4,300,000 | ' | ' | ' | ' |
Balance_Sheet_Classification_o
Balance Sheet Classification of Derivative Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Liability Derivatives | $15,084 | $28,895 |
Accrued Interest Payable and Other Liabilities | ' | ' |
Derivative [Line Items] | ' | ' |
Liability Derivatives | 3,943 | 6,038 |
Accrued Interest Payable and Other Liabilities | Total Interest Rate Contacts | ' | ' |
Derivative [Line Items] | ' | ' |
Liability Derivatives | 31,914 | 35,990 |
Derivatives not Designated as Hedging Instruments | Accrued Interest Payable and Other Liabilities | Interest Rate Swap Contracts Fair Value | ' | ' |
Derivative [Line Items] | ' | ' |
Liability Derivatives | 738 | 1,114 |
Derivatives Designated as Hedging Instruments | Accrued Interest Payable and Other Liabilities | Interest Rate Swap Contracts Fair Value | ' | ' |
Derivative [Line Items] | ' | ' |
Liability Derivatives | $3,205 | $4,924 |
Effect_of_Derivative_Instrumen
Effect of Derivative Instruments on Consolidated Statements of Income (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives not Designated as Hedging Instruments | ' | ' |
Derivative [Line Items] | ' | ' |
Net increase (decrease) in interest and other non-interest income | $17 | $340 |
Derivatives not Designated as Hedging Instruments | Loans | ' | ' |
Derivative [Line Items] | ' | ' |
Increase (decrease) in fair value of interest rate swap contracts | 306 | 666 |
Payments on interest rate swap contracts on loans | -289 | -329 |
Net increase (decrease) in interest and other non-interest income | 17 | 337 |
Derivatives not Designated as Hedging Instruments | Subordinated debentures | ' | ' |
Derivative [Line Items] | ' | ' |
Increase (decrease) in fair value of interest rate swap contracts | 70 | 65 |
Payments on interest rate swap contracts on loans | -70 | -62 |
Net increase (decrease) in interest and other non-interest income | 0 | 3 |
Derivatives Designated as Hedging Instruments | Loans | ' | ' |
Derivative [Line Items] | ' | ' |
Increase (decrease) in fair value of interest rate swap contracts | 1,719 | -59 |
(Decrease) in fair value of hedged loans | -554 | -73 |
Payments on interest rate swap contracts on loans | -1,294 | -333 |
Net increase (decrease) in interest and other non-interest income | ($129) | ($465) |
Securities_Sold_Under_Repurcha
Securities Sold Under Repurchase Agreements and Derivatives Securities Offset Consolidated Financial Statements Due to an Enforceable Master Netting Arrangement (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Recognized in the Consolidated Balance Sheets | $15,084 | $28,895 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 15,084 | 28,895 |
Net Amount (Collateral over liability balance required to be pledged) | 860 | 811 |
Interest Rate Swap Contracts Fair Value | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Recognized in the Consolidated Balance Sheets | 3,943 | 6,038 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 3,943 | 6,038 |
Net Amount (Collateral over liability balance required to be pledged) | 251 | 368 |
Securities Sold under Agreements to Repurchase | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Recognized in the Consolidated Balance Sheets | 11,141 | 22,857 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 11,141 | 22,857 |
Net Amount (Collateral over liability balance required to be pledged) | 609 | 443 |
Financial Instruments | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Not Offset in the Consolidated Balance Sheets | 15,084 | 28,895 |
Financial Instruments | Interest Rate Swap Contracts Fair Value | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Not Offset in the Consolidated Balance Sheets | 3,943 | 6,038 |
Financial Instruments | Securities Sold under Agreements to Repurchase | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Not Offset in the Consolidated Balance Sheets | 11,141 | 22,857 |
Collateral Pledged | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Not Offset in the Consolidated Balance Sheets | 15,944 | 29,706 |
Collateral Pledged | Interest Rate Swap Contracts Fair Value | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Not Offset in the Consolidated Balance Sheets | 4,194 | 6,406 |
Collateral Pledged | Securities Sold under Agreements to Repurchase | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross Amounts Not Offset in the Consolidated Balance Sheets | $11,750 | $23,300 |
Stock_Options_and_Restricted_S2
Stock Options and Restricted Stock - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Tax benefits from stock options exercised | $659,000 | ' | ' |
Tax deficiency from stock option exercised | ' | 4,000 | ' |
Additional tax expenses related to stock exercise | 151,000 | 53,000 | ' |
Tax benefits or deficiencies related to exercise or cancellation of stock options | ' | 0 | ' |
Share based compensation, option Granted | 0 | 0 | 0 |
Stock based compensation expense | 21,000 | 54,000 | 107,000 |
Options exercised | 282,031 | 0 | ' |
Options outstanding | 434,740 | 734,896 | ' |
Total intrinsic value of options exercised | 2,300,000 | ' | 284,000 |
Shares of restricted stock vested | 93,950 | ' | ' |
Nonqualified Stock Options | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Stock options issued | 0 | 0 | 0 |
Restricted Stock | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Tax benefits from stock options exercised | 96,000 | ' | 12,300 |
Tax deficiency from stock option exercised | ' | 57,000 | ' |
Stock-based compensation expense | 1,100,000 | 1,100,000 | 1,400,000 |
Aggregate intrinsic fair value, shares | 93,950 | ' | ' |
Shares of restricted stock vested | 1,400,000 | ' | ' |
Stock Options | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Tax benefits from stock options exercised | 563,000 | ' | ' |
Non-qualified Stock Option Plan | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Tax benefits from stock options exercised | 359,000 | ' | ' |
Non-qualified Stock Option Plan | Director | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Tax benefits from stock options exercised | ' | ' | 38,900 |
2007 Equity Incentive Plan | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Share based compensation, additional shares authorized for future issuance | ' | ' | 1,000,000 |
Number of shares issued under the plan | 682,183 | ' | ' |
Issued shares subsequently cancelled and returned back into the plan | 53,350 | ' | ' |
Share based compensation number of shares available for future issuance | 861,714 | ' | ' |
Stock options issued | 0 | 0 | 0 |
2007 Equity Incentive Plan | Before Amendment | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Share based compensation number of shares authorized | 490,547 | ' | ' |
2007 Equity Incentive Plan | After Amendment | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Share based compensation number of shares authorized | ' | ' | 1,490,547 |
Original Plan | Nonqualified Stock Options | Maximum | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Stock options term | '10 years | ' | ' |
Stock option vesting percentage per year | 50.00% | ' | ' |
Original Plan | Nonqualified Stock Options | Minimum | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Stock option vesting percentage per year | 20.00% | ' | ' |
Options canceled | Non-qualified Stock Option Plan | Director | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Tax deficiency from stock option exercised | ' | ' | $45,900 |
10b-5 Plans [Member] | ' | ' | ' |
Stock Option Activity And Changes [Line Items] | ' | ' | ' |
Share based compensation number of shares authorized | 320,764 | ' | ' |
Options exercised | 232,420 | ' | ' |
Options outstanding | 88,344 | ' | ' |
Future_Compensation_Expense_Re
Future Compensation Expense Related to Non-Vested Stock Option and Restricted Stock Grants (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
2014 | $1,201 |
2015 | 458 |
2016 | 131 |
2017 | 18 |
Thereafter | 3 |
Total | 1,811 |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
2014 | 10 |
2015 | 2 |
2016 | 0 |
2017 | 0 |
Thereafter | 0 |
Total | 12 |
Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
2014 | 1,191 |
2015 | 456 |
2016 | 131 |
2017 | 18 |
Thereafter | 3 |
Total | $1,799 |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Shares | ' | ' |
Outstanding stock options at beginning, Shares | 734,896 | ' |
Granted, Shares | 0 | ' |
Exercised, Shares | -282,031 | 0 |
Forfeited, Shares | -625 | ' |
Expired, Shares | -17,500 | ' |
Outstanding stock options at ending, Shares | 434,740 | 734,896 |
Exercisable options at December 31, 2013, Shares | 417,465 | ' |
Unvested options at December 31, 2013, Shares | 17,275 | ' |
Outstanding, vested and expected to vest at December 31, 2013, Shares | 434,740 | ' |
Weighted Average Exercise Price | ' | ' |
Outstanding stock options at beginning, Weighted Average Exercise Price | $12.44 | ' |
Granted, Weighted Average Exercise Price | $0 | ' |
Exercised, Weighted Average Exercise Price | $9.89 | ' |
Forfeited, Weighted Average Exercise Price | $9.50 | ' |
Expired, Weighted Average Exercise Price | $18.18 | ' |
Outstanding stock options at end, Weighted Average Exercise Price | $13.89 | $12.44 |
Exercisable options at end, Weighted Average Exercise Price | $13.97 | ' |
Unvested options at end, Weighted Average Exercise Price | $11.92 | ' |
Outstanding, vested and expected to vest at end, Weighted Average Exercise Price | $13.89 | ' |
Weighted Average Remaining Contractual Term | ' | ' |
Outstanding stock options at beginning, Weighted Average Remaining Contractual Term | '2 years 1 month 6 days | '2 years 9 months 18 days |
Outstanding stock options at end, Weighted Average Remaining Contractual Term | '2 years 1 month 6 days | '2 years 9 months 18 days |
Exercisable options at end, Weighted Average Remaining Contractual Term | '2 years 1 month 6 days | ' |
Unvested options at end, Weighted Average Remaining Contractual Term | '2 years 9 months 18 days | ' |
Outstanding, vested and expected to vest at end, Weighted Average Remaining Contractual Term | '2 years 1 month 6 days | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding stock options at beginning, Aggregate Intrinsic Value | $966 | ' |
Outstanding stock options at end, Aggregate Intrinsic Value | 1,913 | 966 |
Exercisable options at end, Aggregate Intrinsic Value | 1,816 | ' |
Unvested options at end, Aggregate Intrinsic Value | 96 | ' |
Outstanding, vested and expected to vest at end, Aggregate Intrinsic Value | $1,913 | ' |
Restricted_Stock_Activity_Deta
Restricted Stock Activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Number of Shares | ' |
Unvested, at beginning, Number of Shares | 290,550 |
Granted, Number of Shares | 81,050 |
Vested, Number of Shares | -93,950 |
Cancelled and forfeited, Number of Shares | -11,600 |
Unvested, at end, Number of Shares | 266,050 |
Weighted-Average Grant-Date Fair Value per Share | ' |
Unvested, at beginning, Weighted-Average Grant-Date Fair Value per Share | $11.99 |
Granted, Weighted-Average Grant-Date Fair Value per Share | $16.80 |
Vested, Weighted-Average Grant-Date Fair Value per Share | $12.02 |
Cancelled and forfeited, Weighted-Average Grant-Date Fair Value per Share | $11.06 |
Unvested, at end, Weighted-Average Grant-Date Fair Value per Share | $13.49 |
Supplemental_Executive_and_Dir1
Supplemental Executive and Director Retirement Plans - Additional Information (Detail) (Supplemental Executive Retirement Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Supplemental Executive Retirement Plan | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Accrued Supplemental executive retirement plan | $2,600,000 | $2,100,000 | ' |
Accrued Supplemental Employee Salary Plan | ' | 1,600,000 | ' |
Accrued Deferred Director Fee Plan | ' | 321,000 | ' |
Deferred salary compensation expense | 661,000 | 217,000 | 0 |
Accrued Split Dollar Employee insurance plan | 1,100,000 | 1,000,000 | ' |
Split dollar life insurance expense | $36,000 | $47,000 | $3,000 |
Defined_Contribution_Plan_Four
Defined Contribution Plan Four Zero One K - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
"Safe harbor" or Guaranteed Company Contribution percentage | ' | 3.00% | 3.00% |
Matching contribution per dollar by employer | $0.50 | ' | ' |
Employee maximum contribution percentage | 4.00% | ' | ' |
Participants vesting percentage of their own deferrals | 100.00% | ' | ' |
Contributions made to employees | $431,000 | $383,000 | $325,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Uncertain tax positions | $0 | $0 | $0 | ' |
Effective tax rate | 33.85% | 49.09% | 43.88% | ' |
Statutory federal tax rate | 35.00% | 35.00% | 35.00% | ' |
Combined net Federal and State deferred tax assets | 4,300,000 | 6,400,000 | ' | ' |
Annual limitation of operating losses | ' | ' | ' | 624,000 |
State tax operating loss carryforward | 168,000 | 293,000 | ' | ' |
Net tax benefits | 155,000 | ' | ' | ' |
Tax benefit | 659,000 | ' | ' | ' |
Additional tax expenses related to stock exercise | 151,000 | 53,000 | ' | ' |
Tax (benefit) related to re-valuing of deferred tax assets and liabilities | -326,000 | 0 | 0 | ' |
Change in the federal statutory rate | 1.00% | ' | ' | ' |
Impact of change in the federal statutory rate on provision | 326,000 | ' | ' | ' |
Restricted Stock | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Tax benefit | 96,000 | ' | 12,300 | ' |
Restricted Stock | Additional Paid-in Capital | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Tax benefit | 96,000 | ' | ' | ' |
Non-qualified Stock Option Plan | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Tax benefit | 359,000 | ' | ' | ' |
Non-qualified Stock Option Plan | Additional Paid-in Capital | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Tax benefit | 359,000 | ' | ' | ' |
Incentive Stock Options | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Tax benefit | 355,000 | ' | ' | ' |
Incentive Stock Options | Additional Paid-in Capital | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Tax benefit | 204,000 | ' | ' | ' |
PC Bancorp | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Blended statutory tax rate | 42.05% | 41.15% | ' | ' |
Effective tax rate | 33.85% | ' | ' | ' |
Statutory federal tax rate | 35.00% | 34.00% | ' | ' |
California Oaks State Bank [Member] | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
Federal net operating loss carry-forward attributable to COSB acquisition | 906,000 | 1,500,000 | ' | ' |
State net operating loss carryforwards attributable to COSB acquisition | 789,000 | 1,400,000 | ' | ' |
Decrease in both the federal and state net operating loss carryforwards | 624,000 | ' | ' | ' |
Federal and state net operating losses | 1,300,000 | ' | ' | ' |
Net federal and state operating loss tax benefits | 1,900,000 | ' | ' | ' |
PC Bancorp | ' | ' | ' | ' |
Effective Tax Rate [Line Items] | ' | ' | ' | ' |
State tax operating loss carryforward | $741,000 | $741,000 | ' | ' |
Income_Tax_Expense_Benefit_Det
Income Tax Expense (Benefit) (Detail) (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 |
Current provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $1,669 | $2,497 | $748 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 238 | 265 | 337 |
Total current provision | ' | ' | ' | ' | ' | ' | ' | ' | 1,907 | 2,762 | 1,085 |
Deferred provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 2,674 | -917 | 213 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 427 | -180 | -151 |
Total deferred provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 3,101 | -1,097 | 62 |
Total current and deferred provision | $888 | $1,239 | $1,515 | $1,366 | $1,166 | ($453) | $502 | $450 | $5,008 | $1,665 | $1,147 |
Components_of_Net_Deferred_Tax
Components of Net Deferred Tax Asset Recognized Accompanying Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets | ' | ' |
Federal tax operating loss carryforward | $317 | $520 |
State tax operating loss carryforward | 168 | 293 |
Allowance for loan loss | 4,726 | 3,656 |
Purchase accounting and loan fair value adjustments | 5,558 | 8,763 |
Impairment charge on securities available-for-sale | 0 | 391 |
Accruals and other liabilities | 1,570 | 2,389 |
Stock compensation and deferred compensation costs | 3,145 | 2,869 |
Net unrealized loss on securities available-for-sale | 143 | 0 |
Start up, organizational and other costs | 255 | 287 |
Total deferred tax assets | 15,882 | 19,168 |
Deferred Tax Liabilities | ' | ' |
Net unrealized gain on securities available-for-sale | 0 | -975 |
State tax liability | -1,270 | -1,288 |
Unamortized fair value on subordinated debentures | -1,402 | -1,436 |
Core deposit intangibles | -478 | -747 |
Prepaid expense and other | -815 | -754 |
Total deferred tax liabilities | -3,965 | -5,200 |
Valuation allowance | -82 | -150 |
Deferred tax assets, net | $11,835 | $13,818 |
Reconciliation_of_Statutory_In
Reconciliation of Statutory Income Tax Rate (Detail) (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 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal income tax expense at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | $5,178 | $1,187 | $915 |
State franchise taxes, net of federal benefit, excluding LIHTC investments | ' | ' | ' | ' | ' | ' | ' | ' | 524 | 315 | 123 |
Effect of rate change on net deferred tax asset | ' | ' | ' | ' | ' | ' | ' | ' | -326 | 0 | 0 |
Release of state valuation allowance on use of net operating loss | ' | ' | ' | ' | ' | ' | ' | ' | -68 | -150 | 0 |
Meals and entertainment, dues and other non-deductible items | ' | ' | ' | ' | ' | ' | ' | ' | 54 | 47 | 38 |
Cash surrender life insurance | ' | ' | ' | ' | ' | ' | ' | ' | -210 | -91 | 0 |
Stock compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | -126 | 39 | 1 |
LIHTC investments | ' | ' | ' | ' | ' | ' | ' | ' | -155 | 0 | 0 |
Merger costs | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 300 | 89 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 132 | 18 | -19 |
Total current and deferred provision | $888 | $1,239 | $1,515 | $1,366 | $1,166 | ($453) | $502 | $450 | $5,008 | $1,665 | $1,147 |
Federal income tax expense at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
State franchise taxes, net of federal benefit, excluding LIHTC investments | ' | ' | ' | ' | ' | ' | ' | ' | 3.54% | 9.29% | 4.70% |
Effect of rate change on net deferred tax asset | ' | ' | ' | ' | ' | ' | ' | ' | -2.20% | 0.00% | 0.00% |
Release of state valuation allowance on use of net operating loss | ' | ' | ' | ' | ' | ' | ' | ' | -0.46% | -4.43% | 0.00% |
Meals and entertainment, dues and other non-deductible items | ' | ' | ' | ' | ' | ' | ' | ' | 0.37% | 1.39% | 1.46% |
Cash surrender life insurance | ' | ' | ' | ' | ' | ' | ' | ' | -1.42% | -2.68% | 0.00% |
Stock compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | -0.85% | 1.15% | 0.02% |
LIHTC investments | ' | ' | ' | ' | ' | ' | ' | ' | -1.05% | 0.00% | 0.00% |
Merger costs | ' | ' | ' | ' | ' | ' | ' | ' | 0.03% | 8.84% | 3.42% |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 0.89% | 0.53% | -0.73% |
Combined federal and state tax, effective rate | ' | ' | ' | ' | ' | ' | ' | ' | 33.85% | 49.09% | 43.88% |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investors | PC Bancorp | PC Bancorp | PC Bancorp | Restricted Stock | Restricted Stock | Unvested Restricted Stock | Unvested Restricted Stock | ||||
Shareholder | Additional | PC Bancorp | PC Bancorp | ||||||||
Shareholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding common stock increased | ' | 322,690 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, Shares outstanding | ' | 11,081,364 | 10,758,674 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of restricted stock issued to employees and directors | ' | 81,050 | ' | ' | ' | ' | ' | 81,050 | 117,300 | ' | ' |
Shares issued during period upon exercise of stock options | ' | 282,031 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued during period upon exercise of stock options for total value | ' | $2,790,000 | ' | $728,000 | ' | ' | ' | ' | ' | ' | ' |
Share based compensation, unvested restricted shares cancelled | ' | 29,863 | ' | ' | ' | ' | ' | ' | ' | 11,600 | 7,000 |
Share based compensation, unvested restricted shares cancelled value | ' | 422,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation, restricted shares issued | ' | 69,450 | ' | ' | ' | ' | ' | ' | 110,300 | ' | ' |
Common shares issued | ' | ' | ' | ' | 3,721,382 | 3,721,382 | ' | ' | ' | ' | ' |
Number of dissenting shareholders | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Common shares exchanged | ' | ' | ' | ' | ' | 685 | ' | ' | ' | ' | ' |
Common shares, exchange rate per share | ' | ' | ' | ' | ' | $10.25 | ' | ' | ' | ' | ' |
Common shares, amount exchanged | ' | ' | ' | ' | ' | 42,300,000 | 7,000 | ' | ' | ' | ' |
Share based compensation, unvested restricted shares retired | ' | ' | ' | ' | ' | ' | ' | ' | 22,421 | ' | ' |
Share based compensation, amount of unvested restricted shares retired | ' | ' | ' | ' | ' | ' | ' | ' | 228,000 | ' | ' |
Company issued through a private placement | 805,156 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of accredited investors | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds from private placement | 10,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost and expenses related to private placement | 569,000 | ' | ' | 569,000 | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of common stock | $9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net unrealized gains (losses) on investment securities: | ' | ' | ' |
Beginning balance | $2,369 | $1,535 | ' |
Non-credit portion of other-than-temporary impairments arising during the period | -41 | 766 | ' |
Net unrealized (losses) arising during the period | -2,629 | 68 | ' |
Other comprehensive loss before reclassification | -2,670 | ' | ' |
Reclassification adjustment for gains realized in net income | -47 | ' | ' |
Net other comprehensive income (loss) | -2,717 | 834 | ' |
Ending balance | -348 | 2,369 | 1,535 |
Net unrealized gains (losses) on investment securities: | ' | ' | ' |
Beginning balance | -975 | -645 | ' |
Non-credit portion of other-than-temporary impairments arising during the period | 17 | -321 | ' |
Net unrealized (losses) arising during the period | 1,082 | -9 | ' |
Other comprehensive loss before reclassification | 1,099 | ' | ' |
Reclassification adjustment for gains realized in net income | 19 | ' | ' |
Net other comprehensive income (loss) | 1,118 | -330 | ' |
Ending balance | 143 | -975 | -645 |
Net unrealized gains (losses) on investment securities: | ' | ' | ' |
Beginning balance | 1,394 | 890 | ' |
Non-credit portion of other-than-temporary impairments arising during the period | -24 | 445 | ' |
Net unrealized (losses) arising during the period | -1,547 | 59 | ' |
Other comprehensive loss before reclassification | -1,571 | ' | ' |
Reclassification adjustment for gains realized in net income | -28 | ' | ' |
Net other comprehensive income (loss) | -1,599 | 504 | 207 |
Ending balance | ($205) | $1,394 | $890 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Equity [Abstract] | ' | ' | ' |
Net unrealized gain (loss) on non other-than-temporarily impaired investment securities | ($348) | $2,332 | ' |
Net unrealized gain on other-than-temporarily impaired investment securities | 0 | 37 | ' |
Total net unrealized gain (loss) on investment securities | -348 | 2,369 | 1,535 |
Tax (expense) benefit | 143 | -975 | -645 |
Total accumulated other comprehensive income (loss) | ($205) | $1,394 | $890 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Legal proceedings against the company | $0 | ' |
Commitments to extend credit | 346,000,000 | 295,000,000 |
Commitments to extend credit standby letter of credit | 40,600,000 | 22,700,000 |
Allowance for unfunded loan commitments | $329,000 | $256,000 |
Unfunded Commitments | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Percentage of unfunded loan commitments | 0.10% | 0.10% |
Regulatory_Matters_Additional_
Regulatory Matters - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2009 |
In Billions, unless otherwise specified | ||
Regulatory Capital Requirements [Abstract] | ' | ' |
Sum of core capital elements, percent | 25.00% | ' |
Trust preferred securities included in tier one capital asset | ' | $15 |
Compliance_with_Regulatory_Cap
Compliance with Regulatory Capital Requirements under Banking Regulations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CU Bancorp | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk-Based Capital Ratio, actual, amount | $145,372 | $126,177 |
Tier 1 Risk-Based Capital Ratio, actual, amount | 134,440 | 117,118 |
Tier 1 Leverage Ratio, actual, amount | 134,440 | 117,118 |
Total Risk-Based Capital Ratio, actual, ratio | 12.80% | 12.35% |
Tier 1 Risk-Based Capital Ratio, actual, ratio | 11.84% | 11.46% |
Tier 1 Leverage Ratio, actual, ratio | 9.57% | 9.13% |
Total Risk-Based Capital Ratio, for capital adequacy purposes, amount | 90,844 | 81,753 |
Tier 1 Risk-Based Capital Ratio, for capital adequacy purposes, amount | 45,422 | 40,876 |
Tier 1 Leverage Ratio, for capital adequacy purposes, amount | 56,172 | 51,290 |
Total Risk-Based Capital Ratio, for capital adequacy purposes, ratio | 8.00% | 8.00% |
Tier 1 Risk-Based Capital Ratio, for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 Leverage Ratio, for capital adequacy purposes, ratio | 4.00% | 4.00% |
Total Risk-Based Capital Ratio, to be well capitalized amount under prompt corrective provisions, amount | 113,555 | 102,191 |
Tier 1 Risk-Based Capital Ratio, to be well capitalized amount under prompt corrective provisions, amount | 68,133 | 61,315 |
Tier 1 Leverage Ratio, to be well capitalized amount under prompt corrective provisions, amount | 70,215 | 64,113 |
Total Risk-Based Capital Ratio, to be well capitalized under prompt corrective provisions, ratio | 10.00% | 10.00% |
Tier 1 Risk-Based Capital Ratio, to be well capitalized under prompt corrective provisions, ratio | 6.00% | 6.00% |
Tier 1 Leverage Ratio, to be well capitalized under prompt corrective provisions, ratio | 5.00% | 5.00% |
California United Bank | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk-Based Capital Ratio, actual, amount | 135,682 | 118,405 |
Tier 1 Risk-Based Capital Ratio, actual, amount | 124,750 | 109,346 |
Tier 1 Leverage Ratio, actual, amount | 124,750 | 109,346 |
Total Risk-Based Capital Ratio, actual, ratio | 11.96% | 11.61% |
Tier 1 Risk-Based Capital Ratio, actual, ratio | 10.99% | 10.72% |
Tier 1 Leverage Ratio, actual, ratio | 8.90% | 8.55% |
Total Risk-Based Capital Ratio, for capital adequacy purposes, amount | 90,772 | 81,615 |
Tier 1 Risk-Based Capital Ratio, for capital adequacy purposes, amount | 45,386 | 40,808 |
Tier 1 Leverage Ratio, for capital adequacy purposes, amount | 56,082 | 51,133 |
Total Risk-Based Capital Ratio, for capital adequacy purposes, ratio | 8.00% | 8.00% |
Tier 1 Risk-Based Capital Ratio, for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 Leverage Ratio, for capital adequacy purposes, ratio | 4.00% | 4.00% |
Total Risk-Based Capital Ratio, to be well capitalized amount under prompt corrective provisions, amount | 113,465 | 102,019 |
Tier 1 Risk-Based Capital Ratio, to be well capitalized amount under prompt corrective provisions, amount | 68,079 | 61,211 |
Tier 1 Leverage Ratio, to be well capitalized amount under prompt corrective provisions, amount | $70,102 | $63,917 |
Total Risk-Based Capital Ratio, to be well capitalized under prompt corrective provisions, ratio | 10.00% | 10.00% |
Tier 1 Risk-Based Capital Ratio, to be well capitalized under prompt corrective provisions, ratio | 6.00% | 6.00% |
Tier 1 Leverage Ratio, to be well capitalized under prompt corrective provisions, ratio | 5.00% | 5.00% |
Financial_Assets_and_Financial
Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available-for-sale | $106,488 | $118,153 |
Interest Rate Swap Contracts | 3,943 | 6,038 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available-for-sale | 0 | 0 |
Interest Rate Swap Contracts | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available-for-sale | 106,488 | 115,243 |
Interest Rate Swap Contracts | 3,943 | 6,038 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available-for-sale | 0 | 2,910 |
Interest Rate Swap Contracts | $0 | $0 |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | |
Collateralized Mortgage Obligations | ||||
Fair Value of Financial Instruments [Line Items] | ' | ' | ' | ' |
Net gain from sale of securities | $47,000 | $0 | $219,000 | $5,000 |
Roll_Forward_including_Additio
Roll Forward including Additional Information about Financial Assets Measured at Fair Value (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ' | ' | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value | $2,910 | $5,154 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | -5 | -138 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | -866 | 775 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Issuances, Settlements | -2,039 | -1,085 | ||
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Asset Transfers (out of) or into Level 3 | 0 | -1,796 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value | 0 | 2,910 | ||
Private Issue CMO Securities | ' | ' | ||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ' | ' | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value | 2,910 | [1] | 2,775 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | -5 | [1] | -137 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | -866 | [1] | 766 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Issuances, Settlements | -2,039 | [1] | -494 | |
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Asset Transfers (out of) or into Level 3 | 0 | [1] | 0 | |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value | 0 | [1] | 2,910 | [1] |
U.S. Govt Sponsored Agency-CMO and Mortgage-Backed Securities | ' | ' | ||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ' | ' | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value | ' | 2,379 | [2] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | ' | -1 | [2] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | ' | 9 | [2] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Issuances, Settlements | ' | -591 | [2] | |
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Asset Transfers (out of) or into Level 3 | ' | -1,796 | [2] | |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value | ' | $0 | [2] | |
[1] | The Company sold all of its Private Issue CMO Securities in January 2013. | |||
[2] | The FDIC issued security is assumed to have been transferred to a level 2 category at the beginning of 2012, based on the market pricing of the security. |
Balances_of_Assets_and_Liabili
Balances of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) | $264 | $2,056 |
Other real estate owned | 0 | 3,112 |
Total | 264 | 5,168 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) | 0 | 0 |
Other real estate owned | ' | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) | 0 | 0 |
Other real estate owned | ' | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) | 267 | 2,269 |
Other real estate owned | ' | 3,112 |
Total | $267 | $5,381 |
Significant_Unobservable_Input
Significant Unobservable Inputs Used in Fair Value Measurements for Level Three Assets and Liabilities Measured at Fair Value on Recurring or Non-Recurring Basis (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | |
Quantitative Information About Significant Unobservable Inputs [Line Items] | ' | |
Less estimated selling costs | $20 | |
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge Off | ' | |
Quantitative Information About Significant Unobservable Inputs [Line Items] | ' | |
Management assumption regarding collectability of accounts receivable aging report, and real estate appraisal report | 287 | [1] |
Assets, fair value | $287 | [1] |
Valuation Technique | 'Internal valuation of Accounts Receivable aging, net of credit loss estimate and Commercial Real Estate appraisal | [1] |
[1] | During 2013, the Company recorded total charge-offs of $605,000 on the principal balance of the two loans. |
Significant_Unobservable_Input1
Significant Unobservable Inputs Used in Fair Value Measurements for Level Three Assets and Liabilities Measured at Fair Value on Recurring or Non-Recurring Basis (Parenthetical) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Loan | |
Fair Value Disclosures [Abstract] | ' |
Recorded total charge off principal balance | $605,000 |
Number of loans | 2 |
Level_in_Fair_Value_Hierarchy_
Level in Fair Value Hierarchy for Financial Instruments Estimated Fair Values (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available-for-sale, Carrying Amount | $106,488 | $118,153 |
Loans, net, Carrying Amount | 922,591 | 846,082 |
Certificates of deposit, Carrying Amount | 63,581 | 81,336 |
Securities sold under agreements to repurchase, Carrying Amount | 11,141 | 22,857 |
Subordinated debentures, Carrying Amount | 9,379 | 9,169 |
Interest rate swap contracts, Carrying Amount | 3,943 | 6,038 |
Investment securities available-for-sale, Fair Value | 106,488 | 118,153 |
Loans, net, Fair Value | 926,500 | 848,146 |
Certificates of deposit, Fair Value | 63,680 | 81,648 |
Securities sold under agreements to repurchase, Fair Value | 11,141 | 22,857 |
Subordinated debentures, Fair Value | 12,372 | 12,372 |
Interest rate swap contracts, Fair Value | 3,943 | 6,038 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available-for-sale, Fair Value | 0 | 0 |
Loans, net, Fair Value | 0 | 0 |
Certificates of deposit, Fair Value | 0 | 0 |
Securities sold under agreements to repurchase, Fair Value | 0 | 0 |
Subordinated debentures, Fair Value | 0 | 0 |
Interest rate swap contracts, Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available-for-sale, Fair Value | 106,488 | 115,243 |
Loans, net, Fair Value | 0 | 0 |
Certificates of deposit, Fair Value | 63,680 | 81,648 |
Securities sold under agreements to repurchase, Fair Value | 11,141 | 22,857 |
Subordinated debentures, Fair Value | 0 | 0 |
Interest rate swap contracts, Fair Value | 3,943 | 6,038 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available-for-sale, Fair Value | 0 | 2,910 |
Loans, net, Fair Value | 926,500 | 848,146 |
Certificates of deposit, Fair Value | 0 | 0 |
Securities sold under agreements to repurchase, Fair Value | 0 | 0 |
Subordinated debentures, Fair Value | 12,372 | 12,372 |
Interest rate swap contracts, Fair Value | $0 | $0 |
Summary_Quarterly_Data_Detail
Summary Quarterly Data (Detail) (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 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $12,841 | $12,822 | $13,114 | $12,069 | $12,457 | $10,400 | $7,161 | $7,478 | $50,846 | $37,496 | $28,756 |
Interest expense | 498 | 516 | 534 | 531 | 696 | 626 | 236 | 239 | 2,079 | 1,797 | 1,316 |
Net interest income | 12,343 | 12,306 | 12,580 | 11,538 | 11,761 | 9,774 | 6,925 | 7,239 | 48,767 | 35,699 | 27,440 |
Provision for loan losses | 934 | 631 | 1,153 | 134 | 867 | 521 | 380 | 0 | 2,852 | 1,768 | 1,442 |
Net interest income after provision for loan losses | 11,409 | 11,675 | 11,427 | 11,404 | 10,894 | 9,253 | 6,545 | 7,239 | 45,915 | 33,931 | 25,998 |
Non-interest income | 1,931 | 1,471 | 1,690 | 1,426 | 1,402 | 1,185 | 752 | 622 | 6,518 | 3,961 | 2,362 |
Non-interest expense | 9,620 | 9,430 | 9,281 | 9,309 | 9,502 | 11,823 | 6,270 | 6,905 | 37,640 | 34,500 | 25,746 |
Net income (loss) before provision for income tax expense (benefit) | 3,720 | 3,716 | 3,836 | 3,521 | 2,794 | -1,385 | 1,027 | 956 | 14,793 | 3,392 | 2,614 |
Provision for income tax (benefit) | 888 | 1,239 | 1,515 | 1,366 | 1,166 | -453 | 502 | 450 | 5,008 | 1,665 | 1,147 |
Net Income (Loss) | $2,832 | $2,477 | $2,321 | $2,155 | $1,628 | ($932) | $525 | $506 | $9,785 | $1,727 | $1,467 |
Basic income (loss) per share | $0.26 | $0.24 | $0.22 | $0.21 | $0.16 | ($0.10) | $0.08 | $0.08 | $0.93 | $0.21 | $0.23 |
Diluted income (loss) per share | $0.26 | $0.23 | $0.22 | $0.20 | $0.15 | ($0.10) | $0.08 | $0.07 | $0.90 | $0.21 | $0.22 |
Parent_Company_Condensed_Balan
Parent Company Condensed Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and due from banks | $23,156 | $25,181 | ' | ' |
Certificates of deposit in other financial institutions | 63,581 | 81,336 | ' | ' |
Accrued interest receivable and other assets | 25,760 | 20,526 | ' | ' |
Total Assets | 1,407,816 | 1,249,637 | ' | ' |
LIABILITIES | ' | ' | ' | ' |
Subordinated debentures | 9,379 | 9,169 | ' | ' |
Accrued interest payable and other liabilities | 16,949 | 13,912 | ' | ' |
Total Liabilities | 1,269,892 | 1,124,014 | ' | ' |
SHAREHOLDERS' EQUITY | 137,924 | 125,623 | 80,844 | 67,274 |
Total Liabilities and Shareholders' Equity | 1,407,816 | 1,249,637 | ' | ' |
CU Bancorp | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and due from banks | 4,348 | 1,477 | ' | ' |
Certificates of deposit in other financial institutions | 0 | 370 | ' | ' |
Loans | 1,786 | 2,472 | ' | ' |
Investment in subsidiary | 141,020 | 130,217 | ' | ' |
Accrued interest receivable and other assets | 207 | 353 | ' | ' |
Total Assets | 147,361 | 134,889 | ' | ' |
LIABILITIES | ' | ' | ' | ' |
Subordinated debentures | 9,379 | 9,169 | ' | ' |
Accrued interest payable and other liabilities | 58 | 97 | ' | ' |
Total Liabilities | 9,437 | 9,266 | ' | ' |
SHAREHOLDERS' EQUITY | 137,924 | 125,623 | ' | ' |
Total Liabilities and Shareholders' Equity | $147,361 | $134,889 | ' | ' |
Parent_Company_Condensed_Incom
Parent Company Condensed Income Statement (Detail) (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 |
Interest income | $12,841 | $12,822 | $13,114 | $12,069 | $12,457 | $10,400 | $7,161 | $7,478 | $50,846 | $37,496 | $28,756 |
Interest expense | 498 | 516 | 534 | 531 | 696 | 626 | 236 | 239 | 2,079 | 1,797 | 1,316 |
Income tax benefit | -888 | -1,239 | -1,515 | -1,366 | -1,166 | 453 | -502 | -450 | -5,008 | -1,665 | -1,147 |
Net Income | 2,832 | 2,477 | 2,321 | 2,155 | 1,628 | -932 | 525 | 506 | 9,785 | 1,727 | 1,467 |
CU Bancorp | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 172 | 93 | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 485 | 331 | ' |
Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 556 | 225 | ' |
Total Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,041 | 556 | ' |
Loss Before Income Tax Benefit and Equity in Undistributed Earnings of Subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | -869 | -463 | ' |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 371 | 138 | ' |
Loss Before Equity in Undistributed Earnings of Subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | -498 | -325 | ' |
Equity in undistributed earnings of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 10,283 | 2,052 | ' |
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | $9,785 | $1,727 | ' |
Parent_Company_Condensed_Cash_
Parent Company Condensed Cash Flow Statement (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash flows from operating activities: | ' | ' | ' |
Net income: | $9,785,000 | $1,727,000 | $1,467,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' | ' |
Accretion of subordinated debenture discount | 209,700 | 94,400 | ' |
Increase in accrued interest receivable and other assets | -7,558,000 | -668,000 | -183,000 |
Decrease in accrued interest payable and other liabilities | 6,459,000 | 1,282,000 | -254,000 |
Net cash provided by operating activities | 8,577,000 | 2,888,000 | 4,444,000 |
Cash flows from investing activities: | ' | ' | ' |
Cash and cash equivalents acquired in acquisition, net of cash paid | 0 | 41,716,000 | 0 |
Net cash used in investing activities | -95,985,000 | -4,036,000 | -121,858,000 |
Cash flows from financing activities: | ' | ' | ' |
Net proceeds from exercise of stock options | 2,790,000 | 0 | 728,000 |
Net cash provided by financing activities | 145,799,000 | 49,814,000 | 40,998,000 |
Net increase in cash | 58,391,000 | 48,666,000 | -76,416,000 |
Cash and cash equivalents, beginning of year | 182,896,000 | 134,230,000 | 210,646,000 |
Cash and cash equivalents, end of year | 241,287,000 | 182,896,000 | 134,230,000 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid during the period for interest | 2,029,000 | 1,681,000 | 1,425,000 |
Cash paid during the period for taxes | -270,000 | 2,685,000 | 200,000 |
CU Bancorp | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net income: | 9,785,000 | 1,727,000 | ' |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' | ' |
Equity in undistributed earnings of subsidiary | -10,283,000 | -2,052,000 | ' |
Net accretion of discounts/premiums | -36,000 | -32,000 | ' |
Accretion of subordinated debenture discount | 210,000 | 94,000 | ' |
Net change in fair value of interest rate contract | -70,000 | -65,000 | ' |
Increase in accrued interest receivable and other assets | -226,000 | -12,000 | ' |
Decrease in accrued interest payable and other liabilities | 32,000 | 25,000 | ' |
Net cash provided by operating activities | 588,000 | -315,000 | ' |
Cash flows from investing activities: | ' | ' | ' |
Cash and cash equivalents acquired in acquisition, net of cash paid | 0 | 2,681,000 | ' |
Capital contribution made to subsidiary | 0 | -1,350,000 | ' |
Cash paid for stock options to PCB employees and dissenting shareholders | 0 | -463,000 | ' |
Cash paid related to stock issuance | 0 | -199,000 | ' |
Maturity of Certificate of Deposit | 370,000 | ' | ' |
Net decrease in loans | 721,000 | 194,000 | ' |
Net cash used in investing activities | 1,091,000 | 863,000 | ' |
Cash flows from financing activities: | ' | ' | ' |
Net proceeds from exercise of stock options | 2,790,000 | 0 | ' |
Restricted stock repurchase | -422,000 | 0 | ' |
Cash proceeds from Bank on prior year tax receivable | 0 | 928,000 | ' |
Net cash provided by financing activities | 2,368,000 | 928,000 | ' |
Net increase in cash | 2,871,000 | 1,476,000 | ' |
Cash and cash equivalents, beginning of year | 1,477,000 | 1,000 | ' |
Cash and cash equivalents, end of year | 4,348,000 | 1,477,000 | ' |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid during the period for interest | 281,000 | 204,000 | ' |
Cash paid during the period for taxes | $1,000 | $1,000 | ' |