Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 08, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CUNB | ||
Entity Registrant Name | CU Bancorp | ||
Entity Central Index Key | 1,543,643 | ||
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 | 17,372,998 | ||
Entity Public Float | $ 342 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 50,960 | $ 33,996 |
Interest earning deposits in other financial institutions | 171,103 | 98,590 |
Total cash and cash equivalents | 222,063 | 132,586 |
Certificates of deposit in other financial institutions | 56,860 | 76,433 |
Investment securities available-for-sale, at fair value | 315,785 | 226,962 |
Investment securities held-to-maturity, at amortized cost | 42,036 | 47,147 |
Total investment securities | 357,821 | 274,109 |
Loans | 1,833,163 | 1,624,723 |
Allowance for loan loss | (15,682) | (12,610) |
Net loans | 1,817,481 | 1,612,113 |
Premises and equipment, net | 5,139 | 5,377 |
Deferred tax assets, net | 17,033 | 16,504 |
Other real estate owned, net | 325 | 850 |
Goodwill | 64,603 | 63,950 |
Core deposit and leasehold right intangibles | 7,671 | 9,547 |
Bank owned life insurance | 49,912 | 38,732 |
Accrued interest receivable and other assets | 35,734 | 34,916 |
Total Assets | 2,634,642 | 2,265,117 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Non-interest bearing demand deposits | 1,288,085 | 1,032,634 |
Interest bearing transaction accounts | 261,123 | 206,544 |
Money market and savings deposits | 679,081 | 643,675 |
Certificates of deposit | 58,502 | 64,840 |
Total deposits | 2,286,791 | 1,947,693 |
Securities sold under agreements to repurchase | 14,360 | 9,411 |
Subordinated debentures, net | 9,697 | 9,538 |
Accrued interest payable and other liabilities | 16,987 | 19,283 |
Total Liabilities | $ 2,327,835 | $ 1,985,925 |
Commitments and Contingencies (Note 7 and Note 21) | ||
SHAREHOLDERS' EQUITY | ||
Serial Preferred Stock - authorized, 50,000,000 shares: Series A, non-cumulative perpetual preferred stock, $1,000 per share liquidation preference, 16,400 shares authorized, 16,400 issued and outstanding at December 31, 2015 and 2014 | $ 16,995 | $ 16,004 |
Common stock - authorized, 75,000,000 shares no par value, 17,175,389 and 16,683,856 shares issued and outstanding at December 31, 2015 and 2014, respectively | 230,688 | 226,389 |
Additional paid-in capital | 23,017 | 19,748 |
Retained earnings | 36,923 | 16,861 |
Accumulated other comprehensive income (loss) | (816) | 190 |
Total Shareholders' Equity | 306,807 | 279,192 |
Total Liabilities and Shareholders' Equity | $ 2,634,642 | $ 2,265,117 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, no par value | ||
Common stock, shares issued | 17,175,389 | 16,683,856 |
Common stock, shares outstanding | 17,175,389 | 16,683,856 |
Series A Preferred Stock | ||
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 |
Preferred stock, authorized shares | 16,400 | 16,400 |
Preferred stock, shares issued | 16,400 | 16,400 |
Preferred stock, shares outstanding | 16,400 | 16,400 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income | |||
Interest and fees on loans | $ 84,537 | $ 51,882 | $ 48,201 |
Interest on investment securities | 4,518 | 2,369 | 1,913 |
Interest on interest bearing deposits in other financial institutions | 1,087 | 926 | 732 |
Total Interest Income | 90,142 | 55,177 | 50,846 |
Interest Expense | |||
Interest on interest bearing transaction accounts | 413 | 278 | 238 |
Interest on money market and savings deposits | 1,652 | 963 | 1,027 |
Interest on certificates of deposit | 190 | 216 | 255 |
Interest on securities sold under agreements to repurchase | 30 | 34 | 74 |
Interest on subordinated debentures | 438 | 431 | 485 |
Total Interest Expense | 2,723 | 1,922 | 2,079 |
Net Interest Income | 87,419 | 53,255 | 48,767 |
Provision for loan losses | 5,080 | 2,239 | 2,852 |
Net Interest Income after Provision for Loan Losses | 82,339 | 51,016 | 45,915 |
Non-Interest Income | |||
Gain (loss) on sale of securities, net | 112 | (47) | 47 |
Gain on sale of SBA loans, net | 1,797 | 1,221 | 1,087 |
Deposit account service charge income | 4,644 | 2,744 | 2,377 |
Other non-interest income | 5,177 | 3,791 | 3,007 |
Total Non-Interest Income | 11,730 | 7,709 | 6,518 |
Non-Interest Expense | |||
Salaries and employee benefits (includes stock based compensation expense of $2,966, $1,699 and $1,088 for the years ended December 31, 2015, 2014 and 2013, respectively) | 37,955 | 26,519 | 22,870 |
Occupancy | 5,792 | 4,112 | 4,194 |
Data processing | 2,495 | 1,968 | 1,868 |
Legal and professional | 2,411 | 2,006 | 2,166 |
FDIC deposit assessment | 1,466 | 844 | 880 |
Merger expenses | 498 | 2,302 | 43 |
OREO valuation write-downs and expenses | 245 | 15 | 95 |
Office services expenses | 1,526 | 1,026 | 1,034 |
Other operating expenses | 7,577 | 4,593 | 4,490 |
Total Non-Interest Expense | 59,965 | 43,385 | 37,640 |
Net Income before Provision for Income Tax Expense | 34,104 | 15,340 | 14,793 |
Provision for income tax expense | 12,868 | 6,432 | 5,008 |
Net Income | 21,236 | 8,908 | 9,785 |
Preferred stock dividends and discount accretion | 1,174 | 124 | |
Net Income available to Common Shareholders | $ 20,062 | $ 8,784 | $ 9,785 |
Earnings Per Share | |||
Basic earnings per share | $ 1.21 | $ 0.77 | $ 0.93 |
Diluted earnings per share | $ 1.18 | $ 0.75 | $ 0.90 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Stock based compensation expense | $ 2,966 | $ 1,699 | $ 1,088 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 21,236 | $ 8,908 | $ 9,785 |
Other Comprehensive Income (Loss), net of tax: | |||
Non-credit portion of other-than-temporary impairments arising during the period | (22) | ||
Net change in unrealized gain (loss) on available-for-sale investment securities | (1,006) | 395 | (1,577) |
Other Comprehensive Income (Loss) | (1,006) | 395 | (1,599) |
Comprehensive Income | $ 20,230 | $ 9,303 | $ 8,186 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Restricted Stock Units (RSUs) | Preferred Stock | Common Stock | Common StockRestricted Stock Units (RSUs) | Additional Paid in Capital | Additional Paid in CapitalRestricted Stock Units (RSUs) | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Dec. 31, 2012 | 10,758,674 | ||||||||
Beginning Balance at Dec. 31, 2012 | $ 125,623 | $ 118,885 | $ 7,052 | $ (1,708) | $ 1,394 | ||||
Net issuance of restricted stock | 69,450 | ||||||||
Exercise of stock options (in shares) | 282,031 | ||||||||
Exercise of stock options | 2,790 | $ 2,790 | |||||||
Stock based compensation expense related to employee stock options and restricted stock | 1,088 | 1,088 | |||||||
Restricted stock repurchase | $ (422) | $ (422) | |||||||
Restricted stock repurchase (in shares) | (28,791) | ||||||||
Excess tax benefit - stock based compensation | 659 | 659 | |||||||
Net income | 9,785 | 9,785 | |||||||
Other comprehensive income (loss) | (1,599) | (1,599) | |||||||
Ending Balance (in shares) at Dec. 31, 2013 | 11,081,364 | ||||||||
Ending Balance at Dec. 31, 2013 | 137,924 | $ 121,675 | 8,377 | 8,077 | (205) | ||||
Net issuance of restricted stock | 167,384 | ||||||||
Exercise of stock options (in shares) | 221,016 | ||||||||
Exercise of stock options | 2,029 | $ 2,029 | |||||||
Issuance of preferred stock for 1st Enterprise merger, (in shares) | 16,400 | ||||||||
Issuance of preferred stock for 1st Enterprise merger, net of fair value discount | 15,921 | $ 15,921 | |||||||
Issuance of common stock for 1st Enterprise merger, net of $27 of issuance costs (in shares) | 5,240,409 | ||||||||
Issuance of common stock for 1st Enterprise merger, net of $27 of issuance costs | 102,685 | $ 102,685 | |||||||
Issuance of replacement stock options for 1st Enterprise merger | 9,561 | 9,561 | |||||||
Stock based compensation expense related to employee stock options and restricted stock | 1,699 | 1,699 | |||||||
Restricted stock repurchase | (471) | (471) | |||||||
Restricted stock repurchase (in shares) | (26,317) | ||||||||
Excess tax benefit - stock based compensation | 582 | 582 | |||||||
Preferred stock dividends and discount accretion | (41) | $ 83 | (124) | ||||||
Net income | 8,908 | 8,908 | |||||||
Other comprehensive income (loss) | 395 | 395 | |||||||
Ending Balance (in shares) at Dec. 31, 2014 | 16,400 | 16,683,856 | |||||||
Ending Balance at Dec. 31, 2014 | $ 279,192 | $ 16,004 | $ 226,389 | 19,748 | 16,861 | 190 | |||
Net issuance of restricted stock | 81,825 | 81,825 | |||||||
Exercise of stock options (in shares) | 454,019 | ||||||||
Exercise of stock options | $ 4,299 | $ 4,299 | |||||||
Stock based compensation expense related to employee stock options and restricted stock | 2,966 | 2,966 | |||||||
Restricted stock repurchase | $ (971) | $ (971) | |||||||
Restricted stock repurchase (in shares) | (44,311) | ||||||||
Excess tax benefit - stock based compensation | 1,274 | 1,274 | |||||||
Preferred stock dividends and discount accretion | (183) | $ 991 | (1,174) | ||||||
Net income | 21,236 | 21,236 | |||||||
Other comprehensive income (loss) | (1,006) | (1,006) | |||||||
Ending Balance (in shares) at Dec. 31, 2015 | 16,400 | 17,175,389 | |||||||
Ending Balance at Dec. 31, 2015 | $ 306,807 | $ 16,995 | $ 230,688 | $ 23,017 | $ 36,923 | $ (816) |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of common stock options for 1st Enterprise merger, net of issuance of costs | $ 27 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income: | $ 21,236 | $ 8,908 | $ 9,785 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 5,080 | 2,239 | 2,852 |
Provision for unfunded loan commitments | 137 | 142 | 73 |
Stock based compensation expense | 2,966 | 1,699 | 1,088 |
Depreciation | 1,424 | 1,019 | 1,082 |
Net accretion of discounts/premiums for loans acquired and deferred loan fees/costs | (9,365) | (5,360) | (6,158) |
Net amortization from investment securities | 3,305 | 1,677 | 1,642 |
Increase in bank owned life insurance | (1,180) | (661) | (617) |
Amortization of core deposit intangibles | 1,680 | 391 | 309 |
Amortization of time deposit premium | (15) | (42) | (141) |
Net amortization of leasehold right intangible asset and liabilities | (21) | 142 | (313) |
Accretion of subordinated debenture discount | 159 | 159 | 210 |
Loss on disposal of fixed assets | 92 | 7 | 15 |
Valuation write-downs on OREO | 133 | ||
Gain on sale of OREO | (23) | ||
Loss (gain) on sale of securities, net | (112) | 47 | (47) |
Gain on sale of SBA loans, net | (1,797) | (1,221) | (1,087) |
Decrease in deferred tax assets | 675 | 732 | 3,101 |
Decrease (increase) in accrued interest receivable and other assets | 456 | 2,428 | (7,558) |
Increase (decrease) in accrued interest payable and other liabilities | (1,964) | 2,041 | 6,459 |
Net excess in tax benefit on stock compensation | (1,274) | (582) | |
Decrease in fair value of derivative swap liability | (251) | (1,147) | (2,095) |
Net cash provided by operating activities | 21,364 | 12,618 | 8,577 |
Cash flows from investing activities: | |||
Cash and cash equivalents acquired in acquisition, net of cash paid | 8,650 | ||
Purchases of investment securities | (134,688) | (52,042) | (36,318) |
Proceeds from sales of investment securities | 5,737 | 25,156 | 6,968 |
Proceeds from repayment and maturities from investment securities | 40,310 | 23,080 | 36,703 |
Loans originated, net of principal payments | (200,739) | (132,846) | (72,116) |
Purchases of premises and equipment | (1,278) | (1,042) | (1,206) |
Proceeds from sale of OREO | 717 | 3,135 | |
Net decrease (increase) in certificates of deposit in other financial institutions | 19,573 | (4,572) | (33,301) |
Purchase of bank owned life insurance | (10,000) | ||
Net redemption of FHLB and other bank stock | 150 | ||
Net cash used in investing activities | (280,368) | (133,616) | (95,985) |
Cash flows from financing activities: | |||
Net increase in Non-interest bearing demand deposits | 255,451 | 67,591 | 88,665 |
Net increase in Interest bearing transaction accounts | 54,579 | 8,033 | 42,988 |
Net increase (decrease) in Money market and savings deposits | 35,406 | (55,236) | 40,449 |
Net decrease in certificates of deposit | (6,323) | (8,433) | (17,614) |
Net increase (decrease) in securities sold under agreements to repurchase | 4,949 | (1,730) | (11,716) |
Net proceeds from stock options exercised | 4,299 | 2,029 | 2,790 |
Issuance costs of common stock for 1st Enterprise merger | (27) | ||
Restricted stock repurchase | (971) | (471) | (422) |
Dividends paid on preferred stock | (183) | (41) | |
Net excess in tax benefit on stock compensation | 1,274 | 582 | 659 |
Net cash provided by financing activities | 348,481 | 12,297 | 145,799 |
Net increase (decrease) in cash and cash equivalents | 89,477 | (108,701) | 58,391 |
Cash and cash equivalents, beginning of year | 132,586 | 241,287 | 182,896 |
Cash and cash equivalents, end of year | 222,063 | 132,586 | 241,287 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the year for interest | 2,877 | 1,801 | 2,029 |
Net cash paid (refunds received) during the year for taxes | 11,567 | 3,725 | (270) |
Supplemental disclosures of non-cash investing activities: | |||
Net change in unrealized gains (losses) on investment securities, net of tax | (1,006) | 395 | $ (1,577) |
Loans transferred to other real estate owned | $ 325 | 850 | |
Supplemental disclosures related to acquisitions: | |||
Assets acquired | 833,497 | ||
Liabilities assumed | 705,214 | ||
Issuance of 16,400 shares of preferred stock | 15,921 | ||
Cash paid for fractional and dissenter shares and stock options | $ 89 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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”). The term “Company,” as used throughout this document, refers to the consolidated financial statements 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 Los Angeles, California. As a state chartered non-member bank, the Bank is subject to regulation by the California Department of Business Oversight (“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 U.S. generally accepted accounting principles (“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 Consolidated Financial Statements The preparation of consolidated financial statements in conformity with GAAP 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 consolidated 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, among other factors, 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 Combinations The Company has a number of fair value adjustments recorded within the consolidated financial statements at December 31, 2015 that relate to the business combinations with California Oaks State Bank “COSB”, Premier Commercial Bancorp “PC Bancorp” and 1 st Enterprise Bank “1 st Enterprise” on December 31, 2010, July 31, 2012 and November 30, 2014, respectively. These fair value adjustments includes goodwill, fair value adjustments on loans, core deposit intangible assets, other intangible assets, fair value adjustments to acquired lease obligations, fair value adjustments to certificates of deposit and fair value adjustments on derivatives. The assets and liabilities acquired through acquisitions have been accounted for at fair value as of the date of the acquisition. The goodwill that was recorded on the transactions represented the excess of the purchase price over the fair value of net assets acquired. Goodwill is not amortized and is reviewed for impairment on October 1st of each year. If an event occurs or circumstances change that result in the Company’s fair value declining below its book value, the Company would perform an impairment analysis at that time. Based on the Company’s 2015 goodwill impairment analysis, no impairment to goodwill has occurred. The Company is a sole reporting unit for evaluation of goodwill. The core deposit intangibles on non-maturing deposits, which represent the intangible value of depositor relationships resulting from deposit liabilities assumed through acquisitions, are being amortized over the projected useful lives of the deposits. The weighted average remaining life of the core deposit intangible is estimated at approximately 7.9 years at December 31, 2015. Core deposit intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Loans acquired through acquisition are recorded at fair value at acquisition date without a carryover of the related Allowance. Purchased Credit Impaired (“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. For non-PCI loans, loan fair value adjustments consist of an interest rate premium or discount on each individual loan and are amortized to loan interest income based on the effective yield method over the remaining life of the loans. Subsequent decreases to the expected cash flows for both PCI and non-PCI loans will result in a provision for loan losses. Business Segments The Company is organized and operates as a single reporting segment, principally engaged in commercial business banking. The Company conducts its lending and deposit operations through nine full service branch offices located in Los Angeles, Orange, Ventura and San Bernardino 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 $14 million and $12 million were required by the Federal Reserve Bank of San Francisco as of December 31, 2015 and 2014, respectively. As of December 31, 2015, the Bank was in compliance with all known U.S. Federal Reserve Bank (“Federal Reserve”) reporting and reserve requirements. 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, and interest earning deposits with the 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 thousand and have an original maturity of between 30 days and 12 months. The current remaining maturities of the Company’s certificates of deposit in other financial institutions at December 31, 2015 range from 4 days to 12 months with a weighted average maturity of 6.9 months and a weighted average yield of 0.81%. At December 31, 2015 and 2014, respectively, the Company had $2.7 million and $4.1 million of certificates of deposits pledged as collateral for its interest rate swap agreements with two counterparty banks. 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, 2015, 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 $47 million in non-interest bearing accounts, $60 million in interest bearing accounts, and $2.5 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 currently classifies its investment securities under the available-for-sale and held-to-maturity classifications. Under the available-for-sale classification, securities can be sold in response to certain conditions, such as changes in interest rates, changes in the credit quality of the securities, when the credit quality of a security does not conform with current investment policy guidelines, fluctuations in deposit levels or loan demand or a 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 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. If the Company has the intent and the ability at the time of purchase to hold certain securities until maturity, they are classified as held-to-maturity and are stated at amortized cost. 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 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) any financial guarantee and financial condition of the guarantor 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 OTTI 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 the amount of the OTTI 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 the underlying collateral. 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. The amount of prepayments varies from time to time based on the interest rate environment and the rate of turnover of mortgages. The Company’s investment in the common stock of the FHLB, Pacific Coast Bankers Bank (“PCBB”) and The Independent Banker’s Bank (“TIB”) is carried at cost and is included in other assets on the accompanying consolidated balance sheets. 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 Company’s investment in FHLB stock is included in other assets on the accompanying consolidated balance sheets. Loans and Interest and Fees on Loans The Company extends commercial, Small Business Administration, 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 charge offs, net of deferred loan fees and costs on originated loans, net of unearned discounts and unamortized premiums on acquired loans, and further reduced by the valuation allowance for loan losses. Nonrefundable loan fees and direct costs associated with the origination of loans are deferred and recognized in interest income over the loan term using the level yield method. Further, discounts or premiums on acquired loans are accreted or amortized to 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 commercial real estate 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” and Note 14 – Derivative Financial Instruments. Nonaccrual loans: 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: Troubled debt restructurings 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 would grant 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. Typical concessions include reductions to the stated interest rate, payment extensions, principal forgiveness and other actions. A loan that is modified at a market rate of interest will not be classified as a 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, 2015 and 2014, 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 non-interest 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 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, 2015 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 allowance is established when the realizable 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 allowance. The individual loan is evaluated for a specific allowance 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. Impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. • Not all impaired loans require a specific allowance. 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. In those instances, neither a general allowance nor a specific allowance 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 seven 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 (“OREO”) 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. Gains and losses on the sale of OREOs and operating expenses of such assets are included in non-interest expense, and operating revenue of such assets is included in non-interest income. 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 1 st as the date to perform its annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives. Goodwill is the only intangible asset with an indefinite life on the Company’s consolidated balance sheets. There was no impairment as of December 31, 2015 or 2014. The increase in goodwill in 2014 and 2015 was the result of the merger with 1 st Enterprise Bank on November 30, 2014. 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 consolidated balance sheets. Leasehold right intangible is the present value of the excess of market rate lease payments over the contractual lease payments of an acquired lease. 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 consolidated balance sheets. 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). 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 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. Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging, 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. At inception and on an ongoing basis, the derivatives that are used in hedging transactions are assessed for effectiveness 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 ar |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2 – Business Combinations On November 30, 2014, the Company completed the merger with 1st Enterprise pursuant to the terms of the Agreement and Plan of Merger dated June 2, 2014, as amended (“Merger Agreement”). 1st Enterprise was merged with and into the Bank, with the Bank continuing as the surviving entity in the merger. Pursuant to the terms and conditions set forth in the Merger Agreement, each outstanding share of 1st Enterprise common stock (other than shares as to which the holder exercised dissenters’ rights) was converted into the right to receive 1.3450 of a share of CU Bancorp common stock, resulting in 5.2 million shares of CU Bancorp common stock issued. The fair value of the 5.2 million common stock issued as part of the consideration paid ($103 million) was determined based on the closing market price ($19.60) of CU Bancorp common stock on November 30, 2014. The 16,400 shares of 1st Enterprise Non-Cumulative Perpetual Preferred Stock, Series D were converted into the right to receive 16,400 shares of CU Bancorp’s Non-Cumulative Perpetual Preferred Stock, Series A (“CU Bancorp Preferred Stock”). The U.S. Department of the Treasury is the sole holder of all outstanding shares of CU Bancorp Preferred Stock. As part of the Merger Agreement, CU Bancorp adopted the 1st Enterprise 2006 Stock Incentive Plan, as amended, as its own equity plan and all stock options granted by 1st Enterprise thereunder are exercisable for CU Bancorp common stock on substantially the same terms but adjusted to reflect the exchange ratio set forth in the Merger Agreement. See Note 16 – Stock Options and Restricted Stock for more details. The merger was accounted for by the Company using the acquisition method of accounting. Accordingly, the assets and liabilities of 1st Enterprise were recorded at their respective fair values at acquisition date and represents management’s estimates based on available information as of the acquisition date. In connection with the merger, the consideration paid, the assets acquired, and the liabilities assumed were recorded at fair value on the date of acquisition, as summarized in the following table (dollars in thousands): November 30, 2014 Assets acquired: Cash and due from banks $ 8,739 Interest earning deposits in other financial institutions 11,554 Investment securities available-for-sale 117,407 Investment securities held-to-maturity 47,457 Loans 553,183 Premises and equipment, net 1,830 Deferred tax asset 5,682 Goodwill 51,658 Core deposit and leasehold right intangibles 7,533 Bank owned life insurance 16,871 Accrued interest receivable and other assets 11,583 Total assets acquired $ 833,497 Liabilities assumed: Deposits $ 703,358 Accrued interest payable and other liabilities 1,856 Total liabilities assumed $ 705,214 Total consideration paid: CU Bancorp common stock issued $ 102,712 CU Bancorp preferred stock issued 15,921 Fair value of 1st Enterprise stock options 9,561 Cash paid to a dissenter shareholder 87 Cash in lieu of fractional shares paid to 1st Enterprise shareholders 2 Total Consideration $ 128,283 1st Enterprise operated as a full-service independent commercial banking institution in the Southern California market with three branches located in downtown Los Angeles, Orange County and the Inland Empire and a loan production office in the San Fernando Valley. 1st Enterprise and the Bank had complementary business models and both had developed strong commercial banking platforms and production capabilities, low-cost deposit bases and robust credit cultures. For the years ended December 31, 2015 and 2014, the Company expensed $498 thousand and $2.3 million of merger expenses, respectively. Additionally, for the same periods, the Company expensed $1.2 million and $423 thousand of severance and retention expenses, respectively. The other intangible assets are primarily related to core deposits and are being amortized on an accelerated basis over a period of approximately ten years in proportion to the related estimated benefits. The assets and liabilities of 1st Enterprise were accounted for at fair value and required either a third party analysis or an internal valuation analysis of fair value. An analysis was performed on loans, investment securities, contractual lease obligations, deferred compensation, deposits, premises and equipment, other assets, other liabilities and preferred stock as of the merger date. Balances that were considered to be at fair value at the date of acquisition were cash and cash equivalents, bank owned life insurance, derivatives, other assets (interest receivable), and certain other liabilities (interest payable). The Company made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. Such fair values are subject to adjustment as more information about facts and circumstances that existed as of the acquisition date become available. This period is called the “measurement period” and it cannot exceed one year from the date of acquisition. See Note 8 – Goodwill, Core Deposits and Leasehold Right Intangibles for further details on a subsequent adjustment made to the 1 st Enterprise goodwill during the one year measurement period. The Company also adopted the presentation and disclosure requirements of ASU 2015-16. For tax purposes, acquisition accounting adjustments, including goodwill are not taxable or deductible. The following table summarizes the fair value of the total consideration transferred as part of the merger with 1st Enterprise as well as the fair value adjustments to 1st Enterprise’s balance sheet as of the acquisition date and the resulting goodwill (dollars in thousands): November 30, 2014 Consideration paid: CU Bancorp common stock issued $ 102,712 CU Bancorp preferred stock issued 15,921 Fair value of 1st Enterprise stock options 9,561 Cash paid to a dissenter shareholder 87 Cash in lieu of fractional shares paid to 1st Enterprise shareholders 2 Total consideration 128,283 Net assets of 1st Enterprise at November 30, 2014 75,205 Fair value adjustments: Investment securities $ 1,779 Loans, net (12,362 ) Premises and equipment (377 ) Deferred taxes 3,019 Core deposits and leasehold intangibles 7,424 Other assets (52 ) Other liabilities 1,989 Total fair value adjustments 1,420 Fair value of net assets acquired $ 76,625 Excess of consideration paid over fair value of net assets acquired (goodwill) $ 51,658 The Company estimated the fair value for most loans acquired from 1 st Enterprise by utilizing a methodology wherein loans with comparable characteristics were aggregated by type of collateral, whether loans are fixed, adjustable, interest only or have balloon structures. Other considerations included risk ratings, delinquency history, performance status (accrual or non-accrual) and other relevant factors. The discounted cash flow approach (“DCF”) was used to arrive at the fair value of the loans acquired. Projected cash flows were determined by estimating future credit losses and prepayment rates, which were then discounted to present value at a risk-adjusted discount rate for similar loans. There was no carryover of 1 st Enterprise’s allowance for loan losses associated with the loans acquired as the loans were initially recorded at fair value. Purchased Credit Impaired (“PCI”) loans are accounted for under ASC 310-30 and non-PCI loans are accounted for under ASC 310-20. 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, which 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 non-PCI loans as of the 1 st Enterprise acquisition date (dollars in thousands): November 30, 2014 PCI Non-PCI Total Contractually required payments $ 577 $ 569,276 $ 569,853 Less: non-accretable difference (108 ) — (108 ) Cash flows expected to be collected (undiscounted) 469 569,276 569,745 Accretable yield — (16,562 ) (16,562 ) Fair value of acquired loans $ 469 $ 552,714 $ 553,183 Pro Forma Financial Information (Unaudited) The following table presents (unaudited) financial information regarding 1 st Enterprise operations included in our consolidated statement of income from the date of acquisition, November 30, 2014, through December 31, 2014. The following table also presents (unaudited) pro forma information for the periods indicated as though the 1 st Enterprise merger had been completed as of January 1, 2013. The 2014 pro forma net income excludes historical non-recurring merger expenses net of taxes, totaling approximately $3.2 million for the Company and 1 st Enterprise (dollars in thousands, except per share data). 1 st Proforma Year ended Proforma Year ended December 31, 2014 2014 2013 Net interest income after provision for loan losses $ 2,023 $ 77,140 $ 68,771 Net income $ 766 $ 17,218 $ 15,299 Preferred stock dividends and discount accretion (1,234 ) (889 ) Net income available to common shareholders $ 15,984 $ 14,410 Diluted earnings per share $ 0.94 $ 0.87 The above proforma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the merged companies that would have been achieved had the acquisition occurred at January 1, 2013 for 1 st Enterprise nor are they intended to represent or be indicative of future results of operations. The proforma results do not include expected operating cost savings as a result of the acquisition. These proforma results require significant estimates and judgments particularly as it relates to valuation and accretion of income associated with acquired loans. |
Computation of Book Value and T
Computation of Book Value and Tangible Book Value per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
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 less preferred stock, by the number of common shares issued and outstanding. Tangible book value per common share was calculated by dividing tangible common 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 share and per share data): December 31, 2015 2014 Total Shareholders’ Equity $ 306,807 $ 279,192 Less: Preferred stock 16,995 16,004 Less: Goodwill 64,603 63,950 Less: Core deposit and leasehold right intangibles 7,671 9,547 Tangible Shareholders’ Equity 217,538 $ 189,691 Common shares issued and outstanding 17,175,389 16,683,856 Book value per common share $ 16.87 $ 15.78 Tangible book value per common share $ 12.67 $ 11.37 |
Computation of Earnings per Com
Computation of Earnings per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
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 available to common shareholders by the applicable basic and diluted weighted average common shares outstanding. The following table shows weighted average basic common shares outstanding, potential dilutive shares related to stock options, unvested restricted stock, and weighted average diluted shares for the periods indicated (dollars in thousands, except share and per share data): Years Ended 2015 2014 2013 Net Income $ 21,236 $ 8,908 $ 9,785 Less: Preferred stock dividends and discount accretion 1,174 124 — Net Income available to common shareholders $ 20,062 $ 8,784 $ 9,785 Weighted average basic common shares outstanding 16,543,787 11,393,445 10,567,436 Dilutive effect of potential common share issuances from stock options and restricted stock 439,434 274,288 269,425 Weighted average diluted common shares outstanding 16,983,221 11,667,733 10,836,861 Income per common share Basic $ 1.21 $ 0.77 $ 0.93 Diluted $ 1.18 $ 0.75 $ 0.90 Anti-dilutive shares not included in the calculation of diluted earnings per share 32,811 79,000 81,000 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 5 – Investment Securities The investment securities portfolio has been classified into two categories: available-for-sale (“AFS”) and held-to-maturity (“HTM”). The following tables present the amortized cost, gross unrealized gains and losses, and fair values of investment securities by major category as of the dates indicated (dollars in thousands): Gross Unrealized December 31, 2015 Amortized Cost Gains Losses Fair Value Available-for-sale: U.S. Govt Agency and Sponsored Agency – Note Securities $ 1,014 $ — $ — $ 1,014 U.S. Govt Agency – SBA Securities 93,674 399 583 93,490 U.S. Govt Agency – GNMA Mortgage-Backed Securities 30,916 202 418 30,700 U.S. Govt Sponsored Agency – CMO & Mortgage-Backed Securities 97,693 250 789 97,154 Corporate Securities 4,016 7 — 4,023 Municipal Securities 1,010 1 — 1,011 Asset Backed Securities 7,890 — 243 7,647 U.S. Treasury Notes 80,981 — 235 80,746 Total available-for-sale 317,194 859 $ 2,268 315,785 Held-to-maturity: Municipal Securities 42,036 335 32 42,339 Total held-to-maturity 42,036 335 $ 32 42,339 Total investment securities $ 359,230 $ 1,194 $ 2,300 $ 358,124 Gross Unrealized December 31, 2014 Amortized Cost Gains Losses Fair Value Available-for-sale: U.S. Govt Agency and Sponsored Agency – Note Securities $ 2,036 $ 2 $ — $ 2,038 U.S. Govt Agency – SBA Securities 54,062 770 345 54,487 U.S. Govt Agency – GNMA Mortgage-Backed Securities 29,364 255 277 29,342 U.S. Govt Sponsored Agency – CMO & Mortgage-Backed Securities 107,348 457 577 107,228 Corporate Securities 4,043 77 — 4,120 Municipal Securities 1,039 11 — 1,050 Asset Backed Securities 8,711 1 40 8,672 U.S. Treasury Notes 20,031 — 6 20,025 Total available-for-sale 226,634 1,573 $ 1,245 226,962 Held-to-maturity: Municipal Securities 47,147 169 157 47,159 Total held-to-maturity 47,147 169 $ 157 47,159 Total investment securities $ 273,781 $ 1,742 $ 1,402 $ 274,121 The Company’s investment securities portfolio at December 31, 2015, consists of U.S. Treasury Notes, U.S. Agency and U.S. Sponsored Agency issued AAA and AA rated investment-grade securities, asset backed securities, investment grade corporate bond securities, and municipal securities. At December 31, 2015 and December 31, 2014, securities with a market value of $197 million and $149 million, respectively, were pledged as collateral for securities sold under agreements to repurchase, public deposits, outstanding standby letters of credit, bankruptcy deposits, and other purposes as required by various statutes and agreements. See Note 9 – Borrowings and Subordinated Debentures. The following tables present the gross unrealized losses and fair values of AFS and HTM investment securities that were in unrealized loss positions, summarized and classified according to the duration of the loss period as of the dates indicated (dollars in thousands). < 12 Continuous > 12 Continuous Total December 31, 2015 Fair Gross Fair Gross Fair Gross Available-for-sale investment securities: U.S. Govt. Agency – SBA Securities $ 53,852 $ 428 $ 7,935 $ 154 $ 61,787 $ 582 U.S. Govt. Agency – GNMA Mortgage-Backed Securities 5,417 47 14,296 371 19,713 418 U.S. Govt. Sponsored Agency CMO & Mortgage-Backed Securities 67,475 564 10,024 225 77,499 789 Asset Backed Securities 2,928 54 4,719 190 7,647 244 U.S. Treasury Notes 80,745 235 — — 80,745 235 Total available-for-sale investment securities $ 210,417 $ 1,328 $ 36,974 $ 940 $ 247,391 $ 2,268 Held-to-maturity investment securities: Municipal Securities $ 5,669 $ 16 $ 2,392 $ 16 $ 8,061 $ 32 Total held-to-maturity investment securities $ 5,669 $ 16 $ 2,392 $ 16 $ 8,061 $ 32 < 12 Continuous > 12 Continuous Total December 31, 2014 Fair Gross Fair Gross Fair Gross Available-for-sale investment securities: U.S. Govt. Agency – SBA Securities $ 10,688 $ 87 $ 10,095 $ 258 $ 20,783 $ 345 U.S. Govt. Agency – GNMA Mortgage-Backed Securities 12,784 65 8,784 212 21,568 277 U.S. Govt. Sponsored Agency CMO & Mortgage-Backed Securities 64,360 413 6,584 164 70,944 577 Asset Backed Securities 4,849 40 — — 4,849 40 U.S. Treasury Notes 20,025 6 — — 20,025 6 Total available-for-sale investment securities $ 112,706 $ 611 $ 25,463 $ 634 $ 138,169 $ 1,245 Held-to-maturity investment securities: Municipal Securities $ 23,966 $ 157 $ — $ — $ 23,966 $ 157 Total held-to-maturity investment securities $ 23,966 $ 157 $ — $ — $ 23,966 $ 157 The unrealized losses in each of the above categories are associated with the general fluctuation of market interest rates and are not an indication of any deterioration in the credit quality of the security issuers. Further, the Company does not intend to sell these securities and is not more-likely-than-not to be required to sell the securities before the recovery of its amortized cost basis. Accordingly, the Company had no securities that were classified as other-than-temporary impaired at December 31, 2015 or 2014, and did not recognize any impairment charges in the consolidated statements of income. The amortized cost, fair value and the weighted average yield of debt securities at December 31, 2015, are reflected in the table below (dollars in thousands). Maturity categories are determined as follows: • U.S. Govt. Agency, U.S. Treasury Notes 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, Asset 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 – the earlier of the maturity date or the expected call 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, 2015 Maturities Schedule of Securities (Dollars in thousands) Amortized Fair Value Weighted Available-for-sale: Due through one year $ 66,330 $ 66,185 1.07 % Due after one year through five years 147,915 147,115 1.27 % Due after five years through ten years 82,063 81,624 1.88 % Due after ten years 20,886 20,861 2.84 % Total available-for-sale 317,194 315,785 1.49 % Held-to-maturity: Due through one year 2,237 2,243 1.77 % Due after one year through five years 34,307 34,506 1.58 % Due after five years through ten years 5,492 5,590 1.96 % Total held-to-maturity 42,036 42,339 1.64 % Total investment securities $ 359,230 $ 358,124 1.50 % 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. During the years ended December 31, 2015, 2014 and 2013 the Company recognized net gains and (losses) on sales of available-for-sale securities and held-to-maturity securities in the amount of $112 thousand, $(47) thousand and $47 thousand, respectively. The Company had net proceeds from the sale of available-for-sale securities and held-to-maturity securities of $5.7 million, $25 million and $7.0 million during the years ended December 31, 2015, 2014 and 2013, respectively. Investments in FHLB Common Stock The Company’s investment in the common stock of the FHLB is carried at cost and was $8.0 million as of December 31, 2015 and 2014, 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 2013, 2014, and 2015. The Company has received cash dividends from the FHLB of $1.1 million, $320 thousand, and $199 thousand for the years ending December 31, 2015, 2014, and 2013, respectively. The Company acquired $3.8 million of FHLB common stock in 2014 as part of the acquisition of 1 st Enterprise. 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, 2015 and based on the current financial condition of the FHLB, no impairment losses appear necessary or warranted. Interest Income on Investment Securities The following table presents the composition of interest income on investment securities for the periods indicated (dollars in thousands): Years ended December 31, 2015 2014 2013 Taxable interest $ 3,773 $ 2,331 $ 1,913 Non-taxable interest 745 38 — Total interest income on investment securities $ 4,518 $ 2,369 $ 1,913 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Commercial and Industrial Loans: $ 537,368 $ 528,517 Loans Secured by Real Estate: Owner-Occupied Nonresidential Properties 407,979 339,309 Other Nonresidential Properties 533,168 481,517 Construction, Land Development and Other Land 125,832 72,223 1-4 Family Residential Properties 114,525 121,985 Multifamily Residential Properties 71,179 52,813 Total Loans Secured by Real Estate 1,252,683 1,067,847 Other Loans: 43,112 28,359 Total Loans $ 1,833,163 $ 1,624,723 Loan balances in the table above include net deferred fees and net discount for a total of $22 million and $26 million as of December 31, 2015 and 2014, respectively. Loans are made to commercial, non-profit organizations and consumers. 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 laws. These policies are reviewed and approved by the Board of Directors on a regular basis. Commercial and Industrial Loans Commercial Real Estate Loans Construction and Land Development Loans Residential Loans Other Loans Purchased loans: Restructured loans Concentrations The Company makes commercial, construction, commercial real estate, and consumer home equity loans to customers primarily in Los Angeles, Riverside, Orange, San Bernardino 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, 2015, loans secured by real estate collateral accounted for approximately 69% of the loan portfolio. Of these loans, 96% are secured by first trust deed liens and 4% are secured by second trust deed liens. In addition, 32% 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% of total loans have been secured by a UCC filing on the business property of the borrower. Approximately 6% 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 sufficient 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, 2015 2014 Real Estate $ 857,021 $ 744,663 Manufacturing 174,773 161,233 Construction 161,618 113,763 Wholesale 134,093 124,336 Hotel/Lodging 105,741 88,269 Finance 87,734 96,074 Professional Services 60,952 64,215 Healthcare 47,293 43,917 Other Services 45,002 45,781 Retail 38,928 35,503 Restaurant/Food Service 26,226 24,525 Administrative Management 23,736 28,016 Transportation 22,237 18,158 Information 20,171 15,457 Education 9,244 10,253 Management 8,137 1,606 Entertainment 6,188 8,284 Other 4,069 670 Total $ 1,833,163 $ 1,624,723 Small Business Administration 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, 2015 was $110 million, of which $77 million has been sold. Of the $33 million remaining on the Company’s books, $25 million is not guaranteed and $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. At December 31, 2015, there were no loans classified as held for sale. At December 31, 2015, the balance of SBA 7a loans originated during the year is $2.0 million, of which $1.5 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 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 Contingencies The general component covers non-impaired loans and is based on the historical loan loss experience of the portfolio loan segments for the past 20 quarters, however the Company utilizes Uniform Bank Peer Group (“UBPR”) historical loss data to evaluate potential loss exposure for those loan segments where the Company had no meaningful historical loss experience. The Allowance also includes an assessment of the following qualitative factors: the results of any internal and external loan reviews and any regulatory examination, loan charge-off experience, estimated potential charge-off exposure on each classified loan, credit concentrations, changes in the value of collateral for collateral dependent loans, and any known impairment in the borrower’s ability to repay. The Company also evaluates environmental and other factors such as underwriting standards, staff experience, the nature and volume of loans and loan terms, business conditions, political and regulatory conditions, local and national economic trends. The quantitative portion of the Allowance is adjusted for qualitative factors to account for model imprecision and to incorporate the range of probable outcomes inherent in the estimates used for the Allowance. The Company conducts a critical evaluation of the credit quality of the loan portfolio and the adequacy of the Allowance on a quarterly basis. 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. 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, 2015 2014 2013 Allowance for loan loss at beginning of year $ 12,610 $ 10,603 $ 8,803 Provision for loan losses 5,080 2,239 2,852 Net (charge-offs) recoveries: Charge-offs (2,510 ) (692 ) (1,912 ) Recoveries 502 460 860 Net (charge-offs) (2,008 ) (232 ) (1,052 ) Allowance for loan loss at end of year $ 15,682 $ 12,610 $ 10,603 Net (charge-offs) to average loans (0.12 )% (0.02 )% (0.12 )% Allowance for loan loss to total loans 0.86 % 0.78 % 1.14 % Allowance for loan loss to total loans accounted for at historical cost, which excludes purchased loans acquired by acquisition 1.25 % 1.39 % 1.50 % The following tables present, by portfolio segment, the changes in the allowance for loan loss and the recorded investment in loans as of the dates and for the periods indicated (dollars in thousands): Commercial and Industrial Construction, Land Development and Other Land Commercial Other Real Other Total Year ended – December 31 2015 Allowance for loan loss – Beginning balance $ 5,864 $ 1,684 $ 4,802 $ 260 $ 12,610 Provision for loan losses 1,781 392 2,306 601 5,080 Net (charge-offs) recoveries: Charge-offs (2,218 ) — (292 ) — (2,510 ) Recoveries 497 — 5 — 502 Total net (charge-offs) (1,721 ) — (287 ) — (2,008 ) Ending balance $ 5,924 $ 2,076 $ 6,821 $ 861 $ 15,682 Commercial and Industrial Construction, Land Development and Other Land Commercial Other Real Other Total Year ended – December 31 2014 Allowance for loan loss – Beginning balance $ 5,534 $ 1,120 $ 3,886 $ 63 $ 10,603 Provision for loan losses 595 564 883 197 2,239 Net (charge-offs) recoveries: Charge-offs (619 ) — (73 ) — (692 ) Recoveries 354 — 106 — 460 Total net (charge-offs) recoveries (265 ) — 33 — (232 ) Ending balance $ 5,864 $ 1,684 $ 4,802 $ 260 $ 12,610 The following tables present 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 and Industrial Construction, Land and Other Land Commercial Other Real Other Total December 31, 2015 Allowance for loan loss: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 5,924 2,076 6,821 861 15,682 Purchased credit impaired (loans acquired with deteriorated credit quality) — — — — — Total Allowance for Loan Loss $ 5,924 $ 2,076 $ 6,821 $ 861 $ 15,682 Loans receivable: Individually evaluated for impairment $ 558 $ — $ 649 $ — $ 1,207 Collectively evaluated for impairment 536,333 125,832 1,124,667 43,112 1,829,944 Purchased credit impaired (loans acquired with deteriorated credit quality) 477 — 1,535 — 2,012 Total Loans Receivable $ 537,368 $ 125,832 $ 1,126,851 $ 43,112 $ 1,833,163 Commercial and Industrial Construction, Land and Other Land Commercial Other Real Other Total December 31, 2014 Allowance for loan loss: Individually evaluated for impairment $ 222 $ — $ — $ — $ 222 Collectively evaluated for impairment 5,642 1,684 4,802 260 12,388 Purchased credit impaired (loans acquired with deteriorated credit quality) — — — — — Total Allowance for Loan Loss $ 5,864 $ 1,684 $ 4,802 $ 260 $ 12,610 Loans receivable: Individually evaluated for impairment $ 1,914 $ — $ 737 $ — $ 2,651 Collectively evaluated for impairment 525,910 72,223 993,195 28,359 1,619,687 Purchased credit impaired (loans acquired with deteriorated credit quality) 693 — 1,692 — 2,385 Total Loans Receivable $ 528,517 $ 72,223 $ 995,624 $ 28,359 $ 1,624,723 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, 2015 Commercial Construction, Commercial Other Real Other Total Pass $ 503,006 $ 125,832 $ 1,101,548 $ 40,132 $ 1,770,518 Special Mention 16,041 — 6,494 43 22,578 Substandard 18,321 — 18,809 2,937 40,067 Doubtful — — — — — Total $ 537,368 $ 125,832 $ 1,126,851 $ 43,112 $ 1,833,163 December 31, 2014 Commercial Construction, Commercial Other Real Other Total Pass $ 502,624 $ 72,223 $ 977,525 $ 28,358 $ 1,580,730 Special Mention 8,738 — 4,878 — 13,616 Substandard 17,155 — 13,221 1 30,377 Doubtful — — — — — Total $ 528,517 $ 72,223 $ 995,624 $ 28,359 $ 1,624,723 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, 2015 31-60 Days Past Due 61-90 Days Past Due Greater 90 Days Past Due and Total Past Due and Total Non- Current Total Loans Commercial and Industrial $ — $ — $ — $ — $ 1,032 $ 536,336 $ 537,368 Construction, Land Development and Other Land — — — — — 125,832 125,832 Commercial and Other Real Estate — — — — 1,019 1,125,832 1,126,851 Other — — — — — 43,112 43,112 Total $ — $ — $ — $ — $ 2,051 $ 1,831,112 $ 1,833,163 December 31, 2014 31-60 Days Past Due 61-90 Days Past Due Greater 90 Days Past Due and Total Past Due and Total Non- Current Total Loans Commercial and Industrial $ 192 $ 233 $ — $ 425 $ 2,604 $ 525,488 $ 528,517 Construction, Land Development and Other Land — — — — — 72,223 72,223 Commercial and Other Real Estate 354 — — 354 1,305 993,965 995,624 Other — — — — — 28,359 28,359 Total $ 546 $ 233 $ 0 $ 779 $ 3,909 $ 1,620,035 $ 1,624,723 Included in the non-accrual column above are purchased credit impaired loans of $844 thousand and $1.3 million as of December 31, 2015 and 2014, respectively. Included in the current column are purchased credit impaired loans that have been returned to accrual status of $1.2 million and $1.1 million as of December 31, 2015 and 2014, respectively. Impaired Loans Impaired loans are evaluated by comparing the fair value of the collateral, if the loan is collateral dependent, or the present value of the expected future cash flows discounted at the loan’s effective interest rate, if the loan is not collateral dependent, with the recorded investment of a loan. A valuation allowance is established for an impaired loan when the realizable 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, 2015 and December 31, 2014. The following tables present, by loan portfolio segment, the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable for the dates and periods indicated. This table excludes purchased credit impaired loans (loans acquired in acquisitions with deteriorated credit quality) of $2.0 million and $2.4 million at December 31, 2015 and 2014, respectively. Year ended December 31, 2015 (dollars in thousands) Recorded Unpaid Related Average Interest With no specific allowance recorded: Commercial and Industrial $ 558 $ 1,027 $ — $ 672 $ — Commercial and Other Real Estate 649 692 — 70 — With an allowance recorded: Commercial and Industrial — — — — — Commercial and Other Real Estate — — — — — Total Commercial and Industrial 558 1,027 — 672 — Commercial and Other Real Estate 649 692 — 70 — Total $ 1,207 $ 1,719 $ — $ 742 $ — Year ended December 31, 2014 (dollars in thousands) Recorded Unpaid Related Average Interest With no specific allowance recorded: Commercial and Industrial $ 520 $ 609 $ — $ 993 $ — Commercial and Other Real Estate 737 739 — 2,491 — With an allowance recorded: Commercial and Industrial 1,394 1,546 222 1,507 — Total Commercial and Industrial 1,914 2,155 222 2,500 — Commercial and Other Real Estate 737 739 — 2,491 — Total $ 2,651 $ 2,894 $ 222 $ 4,991 $ — The following is a summary of additional information pertaining to impaired loans for the periods indicated (dollars in thousands): Year Ended December 31, 2015 2014 2013 Average recorded investment in impaired loans $ 742 $ 4,991 $ 7,067 Interest foregone on impaired loans $ 265 $ 421 710 Cash collections applied to reduce principal balance $ 1,118 $ 3,014 5,057 Interest income recognized on cash collections $ — $ — $ — 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 stated interest rate, payment extensions, principal forgiveness or other actions. The modification process includes evaluation of impairment based on the present value of expected future cash flows, discounted at the effective 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 at December 31, 2015, December 31, 2014 and December 31, 2013. These tables include TDR loans that were purchased credit impaired (“PCI”). TDR loans that are non-PCI loans are included in the Impaired Loans tables above. As of December 31, 2015, there were three PCI loans that are considered to be TDR loans with a recorded investment of $263 thousand and unpaid principal balances of $969 thousand. Year ended December 31, 2015 (dollars in thousands) Recorded Unpaid Interest Commercial and Industrial $ 627 $ 1,363 $ — Total $ 627 $ 1,363 $ — Year ended December 31, 2014 Commercial and Industrial $ 530 $ 719 $ — Commercial and Other Real Estate 114 115 — Total $ 644 $ 834 $ — Year ended December 31, 2013 Commercial and Industrial $ 541 $ 843 $ — Commercial and Other Real Estate 2,173 2,785 — Total $ 2,714 $ 3,628 $ — The following tables show the pre- and post-modification recorded investment in TDR loans by loan segment that have occurred during the periods indicated (dollars in thousands): Year ended December 31, 2015 Number Pre-Modification Post- Extended Maturity Date and Deferred Principal and Interest Payments: Commercial and Industrial 3 $ 1,335 $ 208 Total 3 $ 1,335 $ 208 Year ended December 31, 2014 Reduced Interest Rate and Lengthened Amortization: Commercial and Industrial 1 $ 224 $ 224 Commercial and Other Real Estate 1 114 114 Total 2 $ 338 $ 338 Year ended December 31, 2013 Reduced Interest Rate and Lengthened Amortization: Commercial and Industrial 1 $ 310 $ 310 Total 1 $ 310 $ 310 Loans are restructured in an effort to maximize collections. 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 were no commitments to lend additional funds to borrowers whose terms have been modified in troubled debt restructurings at December 31, 2015 or 2014. There have been no payment defaults in the year ended December 31, 2015 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, 2015 2014 Balance, beginning of year $ 21,402 $ 7,912 Accretion, included in interest income (6,274 ) (3,023 ) Additions, due to acquisition — 16,562 Reclassifications to non-accretable yield (518 ) (49 ) Balance, end of year $ 14,610 $ 21,402 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 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 reflects the outstanding balance and related carrying value of PCI loans as of the dates indicated (dollars in thousands): December 31, 2015 December 31, 2014 Unpaid Carrying Unpaid Carrying Commercial and Industrial $ 2,331 $ 477 $ 1,205 $ 693 Commercial and Other Real Estate 2,250 1,535 3,018 1,692 Other 61 — 62 — Total $ 4,642 $ 2,012 $ 4,285 $ 2,385 There is no related allowance for credit losses with the PCI loans as of December 31, 2015 and 2014 included in the tables above. 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 Balance, beginning of year $ 324 $ 395 Accretion, included in interest income (78 ) (71 ) Reclassifications from non-accretable yield — — Balance, end of year $ 246 $ 324 |
Premises and Equipment and Leas
Premises and Equipment and Lease Commitments | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Furniture and equipment $ 8,345 $ 8,489 Leasehold improvements 7,260 7,009 Total 15,605 15,498 Less: Accumulated depreciation and amortization (10,466 ) (10,121 ) Total $ 5,139 $ 5,377 Total depreciation expense for the years ended December 31, 2015, 2014, and 2013 was $1.4 million, $1.0 million, and $1.1 million, 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, 2015 (dollars in thousands): Year Amount 2016 $ 3,387 2017 3,320 2018 2,491 2019 2,344 2020 2,206 Thereafter 4,118 Total $ 17,866 Total rental expense on facilities for the years ended December 31, 2015, 2014 and 2013 was $3.1 million, $2.2 million, and $2.2 million, respectively. |
Goodwill, Core Deposit and Leas
Goodwill, Core Deposit and Leasehold Right Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, the Company had goodwill of $65 million, of which $52 million was related to the 1 st Enterprise merger. See Note 2 – Business Combinations for further details on the 1 st Enterprise merger. The following table presents changes in the carrying value of goodwill for the periods indicated (dollars in thousands): Year Ended 2015 2014 Balance, beginning of year $ 63,950 $ 12,292 Measurement-period adjustment 653 — Goodwill acquired during the year — 51,658 Impairment losses — — Balance, end of year $ 64,603 $ 63,950 Accumulated impairment losses at end of year $ — $ — As described in Note 1 – Simplifying the Accounting for Measurement-Period Adjustment, st Enterprise merger. The 1 st Enterprise merger closed on November 30, 2014. There would not be a significant impact on the consolidated statements of income for the years ended December 31, 2014 and 2015 had such measurement-period adjustment been recognized at the acquisition date, as such loan relationship had been on non-accrual status since early 2015. The Company’s goodwill was evaluated for impairment during the fourth quarter of 2015, with no impairment loss recognition considered necessary. Core Deposit Intangibles (“CDI”) The weighted average amortization period remaining for our core deposit intangibles is 7.94 years. The estimated aggregate amortization expense related to these intangible assets for each of the next five years is $1.3 million, $1.1 million, $936 thousand, $692 thousand, and $628 thousand. The Company’s core deposit intangibles were evaluated for impairment at December 31, 2015, 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, 2015 2014 2013 Gross amount of CDI: Balance, beginning of year $ 9,246 $ 2,103 $ 2,103 Additions due to acquisitions — 7,143 — Balance, end of year 9,246 9,246 2,103 Accumulated Amortization: Balance, beginning of year (1,056 ) (665 ) (356 ) Amortization (1,680 ) (391 ) (309 ) Balance, end of year (2,736 ) (1,056 ) (665 ) Net CDI, end of year $ 6,510 $ 8,190 $ 1,438 Leasehold Right Intangibles Leasehold right intangible is the present value of the excess of market rate lease payments over the contractual lease payments of an acquired lease. The Company recorded a leasehold right intangible of $390 thousand related to the Los Angeles headquarter lease as part of the 1 st Enterprise merger. The recorded value of the Company’s leasehold right intangibles at December 31, 2015 and 2014 was $1.2 million and $1.4 million, respectively. The amortization of the leasehold right intangibles is recorded within the consolidated income statement under occupancy expense. The net amortization of the leasehold right intangible assets and liabilities resulted in income of $62 thousand, income of $142 thousand, and expense of $313 thousand for the years ended December 31, 2015, 2014 and 2013, respectively. During 2015, the Company recorded a $41 thousand adjustment to the fair value of a lease that was acquired in the 1 st Enterprise merger due to a change in the sublease rate assumption since the acquisition date. The adjustment was an expense to merger cost. |
Bank Owned Life Insurance
Bank Owned Life Insurance | 12 Months Ended |
Dec. 31, 2015 | |
Investments, All Other Investments [Abstract] | |
Bank Owned Life Insurance | Note 9 – Bank Owned Life Insurance At December 31, 2015 and 2014 the Company had $50 million and $39 million, respectively of Bank-Owned Life Insurance (“BOLI”). The Company recorded non-interest income associated with the BOLI policies of $1.3 million, $660 thousand and $617 thousand for the years ending December 31, 2015, 2014 and 2013, respectively. The increase in the Company’s balance in 2015 by $11 million to $50 million was from the $10 million in new BOLI policies purchased and a net increase of $1.2 million in the cash surrender value of the policies during 2015. BOLI involves the purchase 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, 2015, the $50 million was allocated between eight individual insurance companies, with balances ranging from approximately 1% to 37% 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 Organi
Investment in California Organized Investment Network ("COIN") | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Investment in California Organized Investment Network ("COIN") | Note 10 – Investment in California Organized Investment Network (“COIN”) During 2015, the Company made investments of $270 thousand in 60 month term, 0% interest rate deposits. The Company made a $220 thousand investment with Enterprise Community Investment, Inc. (“ECII”), that generated a $44 thousand tax credit, and a $50 thousand investment with Valley Economic Development Center (“VEDC”) that generated a $10 thousand tax credit. These investments qualified the Company for a $54 thousand Qualified Investment Tax Credit that was applied to the Company’s 2015 tax provision. ECII and VEDC are certified Community Development Financial Institutions (“CDFI”) as defined and recognized by the United States Department of Treasury and 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 2015 qualified for a 20% or $54 thousand 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 deposits made in 2015 mature in 2020. These deposits are not insured by the FDIC, and are included in other assets on the consolidated 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 Pr
Qualified Affordable Housing Project Investments | 12 Months Ended |
Dec. 31, 2015 | |
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”) was $3.7 million at December 31, 2015 and $4.1 million at December 31, 2014. The funding liability for the LIHTC was $1.1 million at December 31, 2015 compared to $3 million at December 31, 2014. The amount of tax credits and other tax benefits recognized was $543 thousand and $516 thousand as of December 31, 2015 and December 31, 2014, respectively. Further, the amount of amortization expense included in the provision for income taxes was $436 thousand and $370 thousand as of December 31, 2015 and 2014, respectively. See Note 1 – Summary of Significant Accounting Policies, “Qualified Affordable Housing Project Investments” 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, 2015 and 2014. In addition, the table reflects the tax credits and tax benefits recorded by the Company during 2015 and 2014, the amortization of the investment and the net impact to the Company’s income tax provision for 2015 and 2014. Also see Note 19 – Income Tax, for the impact of these investments on the Company’s effective tax rate (dollars in thousands): Qualified Affordable Housing Projects at Original Current Unfunded Tax Credits Amortization of Investments (2) Net Income Enterprise Green Communities West II LP $ 1,000 $ 604 $ 69 $ 136 $ 92 $ 44 Enterprise Housing Partners Calgreen II Fund LP 2,050 1,426 165 198 164 34 Enterprise Housing Partners XXIV LP 2,000 1,680 806 209 180 29 Total – Investments in Qualified Affordable Housing Projects $ 5,050 $ 3,710 $ 1,040 $ 543 $ 436 $ 107 Qualified Affordable Housing Projects at Original Current Unfunded Tax Credits Amortization of Investments (2) Net Income Enterprise Green Communities West II LP $ 1,000 $ 704 $ 162 $ 127 $ 84 $ 43 Enterprise Housing Partners Calgreen II Fund LP 2,050 1,588 635 229 174 55 Enterprise Housing Partners XXIV LP 2,000 1,849 1,685 160 112 48 Total – Investments in Qualified Affordable Housing Projects $ 5,050 $ 4,141 $ 2,482 $ 516 $ 370 $ 146 Qualified Affordable Housing Projects at Original Current Unfunded Tax Credits Amortization of Investments (2) Net Income 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 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 Green Enterprise Enterprise Total Net Income Tax Anticipated net income tax benefit less amortization of investments: 2016 $ 43 $ 42 $ 30 $ 115 2017 43 40 33 116 2018 and thereafter 199 266 290 755 Total – anticipated net income tax benefit in Qualified Affordable Housing Projects $ 285 $ 348 $ 353 $ 986 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Deposits | Note 12 – Deposits At December 31, 2015, 117 customers maintained balances (aggregating all related accounts, including multiple business entities and personal funds of business principals) in excess of $4.0 million. The aggregate amount of such deposits amounted to $1.3 billion or approximately 56% of the Company’s total customer deposit base. The depositors are not concentrated in any industry or business. At December 31, 2015 and 2014, the Company had “reciprocal” CDARS ® ® ® ® At December 31, 2015, $58 million out of total time deposits of $59 million mature within one year. At December 31, 2015 and 2014, the Company had certificates of deposit with balances $100 thousand or more of $55 million and $61 million, respectively, and certificates of deposits with balances $250 thousand or more of $18 million and $20 million, respectively. The following table shows the maturity of the Company’s time deposits of $100 thousand or more at December 31, 2015. Maturity of Time Deposits of $100,000 or More* (Dollars in thousands) Three months or less $ 8,005 Over three through six months 17,513 Over six through twelve months 28,714 Over twelve months 286 Total $ 54,518 * includes CDARS ® ® ICS ® During 2013 the Company began participating as a member of the Insured Cash Sweep ® ® ® ® ® ® ® ® CDARS ® The Company participates and is a member of the Certificate of Deposit Account Registry Service (CDARS ® ® ® ® ® ® |
Borrowings and Subordinated Deb
Borrowings and Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
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 1 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 value of $47 million and $32 million were pledged to secure the Repos at December 31, 2015 and December 31, 2014, respectively. 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, 2015 Date Issued Amount Interest Rate Original Maturity Date December 31, 2015 $ 14,360 0.08% – 0.25% 4 days January 4, 2016 Total $ 14,360 0.19% December 31, 2014 Date Issued Amount Interest Rate Original Maturity Date December 31, 2014 $ 9,411 0.13% – 0.25% 2 days January 2, 2015 Total $ 9,411 0.20% Federal Home Loan Bank Borrowings The Company maintains a secured credit facility with the FHLB, allowing the Company to borrow on an overnight and term basis. The Company’s credit facility with the FHLB is $651 million, which represents approximately 25% of the Bank’s total assets, as reported by the Bank in its September 30, 2015 Federal Financial Institution Examination Council (FFIEC) Call Report. As of December 31, 2015, the Company had $821 million of loan collateral pledged with the FHLB which provides $544 million in borrowing capacity. The Company has $20 million in 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. 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, 2015 or 2014. 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 2015 or 2014, 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, 2015 and 2014, the Company had $8.0 million and $8.0 million of FHLB common stock, respectively. The current value of the FHLB common stock of $8.0 million would support FHLB advances up to $297 million. Any advances from the FHLB in excess of $297 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 by the FHLB. The FHLB did not repurchase any of the Company’s investment in FHLB capital stock during 2015 or 2014. The Company acquired FHLB capital stock of $3.8 million in 2014 from the acquisition of 1 st Enterprise. The FHLB has paid or declared dividends on its capital stock for all four quarters of the years ending December 31, 2015, 2014 and 2013. Subordinated Debentures The following table summarizes the terms of each issuance of subordinated debentures outstanding as of December 31, 2015: Series Amount (in thousands) Issuance Maturity Rate Index Current Next Reset Trust I $ 6,186 12/10/04 03/15/35 3 month LIBOR+2.05 % 2.56 % 03/15/16 Trust II 3,093 12/23/05 03/15/36 3 month LIBOR+1.75 % 2.26 % 03/15/16 Trust III 3,093 06/30/06 09/15/36 3 month LIBOR+1.85 % 2.36 % 03/15/16 Subtotal 12,372 Unamortized fair value adjustment 2,675 Net $ 9,697 The Company had an aggregate outstanding contractual balance of $12 million in subordinated debentures at December 31, 2015. 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 2015 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 $159 thousand, $120 thousand, and $210 thousand in amortization expense related to the fair value adjustment in 2015, 2014, and 2013, respectively. At December 31, 2015 the Company is estimating a remaining life of approximately 20 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 thousand related to the fair value adjustment on the subordinated debentures. Under Dodd Frank, trust preferred securities are excluded from Tier 1 capital, unless such securities were issued prior to May 19, 2010 by a bank holding company with less than $15 billion in assets. CU Bancorp assumed approximately $12.4 million of junior subordinated debt securities issued to various business trust subsidiaries of Premier Commercial Bancorp and funded through the issuance of approximately $12.0 million of floating rate capital trust preferred securities. These junior subordinated debt securities were issued prior to May 19, 2010. Because CU Bancorp has less than $15 billion in assets, the trust preferred securities that CU Bancorp assumed from Premier Commercial Bancorp continue to be included in Tier 1 capital, subject to a limit of 25% of Tier 1 capital elements. See Note 22 – 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, 2015 2014 Balance Average Weighted Balance Average Weighted Securities sold under agreements to repurchase $ 14,360 $ 13,966 0.22 % $ 9,411 $ 13,579 0.25 % The maximum amount of short-term borrowings outstanding at any month-end was $17 million and $16 million in 2015 and 2014, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 14 – Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations and utilizes interest rate swap agreements (“swaps”) as part of its asset/liability management strategy to help manage its interest rate risk position. The Company has two counterparty banks. Derivative Financial Instruments Acquired from 1 st At December 31, 2015, the Company has twelve interest rate swap agreements with customers and twelve offsetting interest-rate swaps with a counterparty bank that were acquired as a result of the merger with 1 st Enterprise on November 30, 2014. The swap agreements are not designated as hedging instruments. The purpose of entering into offsetting derivatives not designated as a hedging instrument is to provide the Company a variable-rate loan receivable and provide the customer the financial effects of a fixed-rate loan without creating significant interest rate risk in the Company’s earnings. The structure of the swaps is as follows: The Company enters into a swap with its customers to allow them to convert variable rate loans to fixed rate loans, and at the same time, the Company enters into a swap with the counterparty bank to allow the Company to pass on the interest-rate risk associated with fixed rate loans. The net effect of the transaction allows the Company to receive interest on the loan from the customer at a variable rate based on LIBOR plus a spread. The changes in the fair value of the swaps primarily offset each other and therefore should not have a significant impact on the Company’s results of operations. Our interest rate swap derivatives acquired from 1 st Enterprise are subject to a master netting arrangement with one counterparty bank. None of our derivative assets and liabilities are offset in the balance sheet. The Company believes the risk of loss associated with counterparty borrowers relating to interest rate swaps is mitigated as the loans with swaps are underwritten to take into account potential additional exposure, although there can be no assurances in this regard since the performance of the swaps is subject to market and counterparty risk. At December 31, 2015 and 2014, the total notional amount of the Company’s swaps acquired from 1 st Enterprise was $28 million and $36 million, respectively. The following tables present the fair values of the asset and liability of the Company’s derivative instruments acquired from 1 st Enterprise as of the dates and periods indicated (dollars in thousands): Asset Derivatives December 31, 2015 December 31, 2014 Interest rate swap contracts fair value $ 881 $ 719 Balance sheet location Accrued Interest Accrued Interest Liability Derivatives December 31, 2015 December 31, 2014 Interest rate swap contracts fair value $ 881 $ 719 Balance sheet location Accrued Interest Accrued Interest Derivative Financial Instruments Acquired from PC Bancorp At December 31, 2015, the Company also has nineteen 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 on July 31, 2012 as a result of the merger with PC Bancorp. All of the interest rate swap contracts acquired from PC Bancorp are with the same counterparty bank. The outstanding swaps have original maturities of up to 15 years. The following table presents the notional amount and the fair values of the asset and liability of the Company’s derivative instruments acquired from PC Bancorp as of the dates indicated (dollars in thousands): Liability Derivatives December 31, 2015 December 31, 2014 Fair Value Hedges Total interest rate contracts notional amount $ 25,938 $ 29,289 Derivatives not designated as hedging instruments: Interest rate swap contracts fair value $ 313 $ 519 Derivatives designated as hedging instruments: Interest rate swap contracts fair value 1,351 2,277 Total interest rate contracts fair value $ 1,664 $ 2,796 Balance sheet location Accrued Interest Payable Accrued Interest Payable 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, 2015 2014 2013 Derivatives not designated as hedging instruments: Interest rate swap contracts – loans Increase in fair value of interest rate swap contracts $ 206 $ 219 $ 306 Payments on interest rate swap contracts on loans (263 ) (273 ) (289 ) Net increase (decrease) in other non-interest income (57 ) (54 ) 17 Interest rate swap contracts – subordinated debenture Increase in fair value of interest rate swap contracts — — 70 Payments on interest rate swap contracts on subordinated debentures — — (70 ) Net increase in other non-interest income — — — Net increase (decrease) in other non-interest income $ (57 ) $ (54 ) $ 17 Derivatives designated as hedging instruments: Interest rate swap contracts – loans Increase in fair value of interest rate swap contracts $ 926 $ 927 1,719 Increase (decrease) in fair value of hedged loans 133 315 (554 ) Payments on interest rate swap contracts on loans (1,089 ) (1,256 ) (1,294 ) Net decrease in interest income on loans (30 ) (14 ) (129 ) Under all of the Company’s interest rate swap contracts, the Company is required to pledge and maintain collateral for the credit support under these agreements. At December 31, 2015, the Company has pledged $2.0 million in investment securities, $2.7 million in certificates of deposit, for a total of $4.7 million, as collateral under the swap agreements. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2015 | |
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 banks 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 a certificate of deposit and investment securities as collateral under the swap agreements. 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 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 in the Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Collateral December 31, 2015 Financial Assets: Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) $ 881 $ — $ 881 $ 881 $ — $ — Total $ 881 $ — $ 881 $ 881 $ — $ — Financial Liabilities: Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) $ 2,545 $ — $ 2,545 $ 2,545 $ 4,759 $ 2,214 Securities sold under agreements to repurchase 14,360 — 14,360 14,360 46,596 32,236 Total $ 16,905 $ — $ 16,905 $ 16,905 $ 51,355 $ 34,450 December 31, 2014 Financial Assets: Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) $ 719 $ — $ 719 $ 719 $ — $ — Total $ 719 $ — $ 719 $ 719 $ — $ — Financial Liabilities: Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) $ 3,515 $ — $ 3,515 $ 3,515 $ 4,150 $ 635 Securities sold under agreements to repurchase 9,411 — 9,411 9,411 32,304 22,893 Total $ 12,926 $ — $ 12,926 $ 12,926 $ 36,454 $ 23,528 |
Stock Options and Restricted St
Stock Options and Restricted Stock | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based 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. The Equity Plan was amended and restated in 2014 to (i) permit the grant of performance-based awards that are not subject to the deduction limitations of Section 162(m) of the Internal Revenue Code, including both equity compensation awards and cash bonus payments, (ii) prohibit the repricing of previously granted options; (iii) eliminate a provision of the Equity Plan that provides for an automatic annual increase in the shares of common stock available for awards under the Equity Plan; and (iv) extend the term of the plan to July 31, 2024. Pursuant to the merger with 1 st Enterprise as discussed in Note 2 above, CU Bancorp adopted the 1 st Enterprise 2006 Stock Incentive Plan, as amended (“2006 Stock Incentive Plan”), as its own equity plan and all stock options granted by 1 st Enterprise thereunder were fully vested and exercisable and were converted to CU Bancorp stock options on substantially the same terms but adjusted to reflect the exchange ratio set forth in the Merger Agreement and applicable Internal Revenue Code provisions and related regulations. No new equity awards will be granted under the 2006 Stock Incentive Plan. A total of 802,766 converted 1 st Enterprise stock options were adopted into CU Bancorp stock options under the Equity Plan with a fair value of $9.6 million and an intrinsic value of $11 million at the merger date. Under the Equity Plan, there are a total of 1,490,547 shares authorized. A total of 987,583 shares have been issued out of the plan, with 73,541 of these issued shares subsequently cancelled and returned back into the plan, leaving 576,505 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 2015, the Company had a combined federal and state excess tax benefit of $1.3 million, related to the vesting of restricted stock and the exercise of stock options during 2015, of which $384 thousand was related to restricted stock and $890 thousand was related to stock options. This excess tax benefit was recorded to additional paid in capital during the year ending December 31, 2015. During 2014, the Company had a combined federal and state excess tax benefit of $582 thousand, related to the vesting of restricted stock and the exercise of stock options during 2014, of which $233 thousand was related to restricted stock and $349 thousand was related to stock options. This excess tax benefit was recorded to additional paid in capital during the year ending December 31, 2014. During 2013, the Company had a combined federal and state excess tax benefit of $659 thousand, related to the vesting of restricted stock and the exercise of stock options during 2013, of which $96 thousand was related to restricted stock and $563 thousand was related to stock options. This excess tax benefit was recorded to additional paid in capital during the year ending December 31, 2013. At December 31, 2015, future compensation expense related to unvested restricted stock grants aggregated to the amounts reflected in the table below (dollars in thousands): Future Stock Based Compensation Expense Restricted Stock 2016 $ 2,149 2017 789 2018 284 2019 35 Thereafter — Total $ 3,257 At December 31, 2015, the weighted-average period over which the total compensation cost related to unvested restricted stock grants not yet recognized is 1.8 years. There was no future compensation expense related to stock options as of December 31, 2015. All stock options outstanding at December 31, 2015 are vested. 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 2013, 2014 or 2015. 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 Expected Life of Options Expected Volatility Dividend Yield Stock Options There were no stock options granted by the Company in 2013, 2014 or 2015. The following table summarizes the stock option activity under the plans for the year ended December 31, 2015: Shares Weighted Weighted (in years) Aggregate (in thousands) Outstanding stock options at December 31, 2014 1,016,490 $ 10.13 1.6 $ 15,479 Granted — Exercised (454,019 ) Forfeited (5,000 ) Expired — Outstanding stock options at December 31, 2015 557,471 $ 10.57 0.8 $ 8,248 Exercisable options at December 31, 2015 557,471 $ 10.57 0.8 $ 8,248 Unvested options at December 31, 2015 — The Company recorded stock option expense of $2 thousand, $10 thousand and $21 thousand, for the years ended December 31, 2015, 2014, and 2013, respectively. The total intrinsic value of options exercised during the years ended December 31, 2015, 2014, and 2013 was $6.5 million, $2.1 million, and $2.3 million, respectively. Restricted Stock The weighted-average grant-date fair value per share in the table below is calculated by taking the total aggregate cost of the restricted shares issued divided by the number of shares of restricted stock 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, 2015: Number Weighted-Average Restricted Stock: Unvested, at December 31, 2014 309,506 $ 16.41 Granted 132,500 21.51 Vested (119,873 ) 14.52 Cancelled and forfeited (10,675 ) 16.92 Unvested, at December 31, 2015 311,458 $ 19.29 Restricted stock compensation expense related to the restricted stock grants reflected in the table above was $2.7 million, $1.7 million, and $1.1 million for the period ended December 31, 2015, 2014, and 2013, respectively. Restricted stock awards reflected in the table above 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 weighted-average grant-date fair value per share for restricted stock granted for 2015, 2014, and 2013 was $21.51, $19.39, and $16.80, respectively. The total fair value of shares vested during the year for 2015, 2014, and 2013 is $2.7 million, $2.3 million, and $1.4 million, respectively. In 2015, the Company granted 40,000 shares of Restricted Stock Unit (“RSU”) under the Equity Plan to one of its executive officers. Such grant is reflected in the table above. The shares of common stock underlying the 40,000 shares of RSU will not be issued until the RSUs vest and are not included in the Company’s shares outstanding as of December 31, 2015. The RSUs 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. |
Supplemental Executive and Dire
Supplemental Executive and Director Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
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. 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, 2015 and 2014, the SERP plan had accrued liabilities of $3.3 million and $3.2 million, respectively. As a result of its acquisition of 1 st Enterprise in 2014, the Company acquired a deferred compensation plan with a liability balance of $596 thousand at December 31, 2014. This deferred compensation plan was established in which eligible employees can elect to defer a percentage of salary of bonuses to be paid after terminating employment with the Company. Payments can be made in lump sum or equal installments for as long as 10 years. A deferral account is established for each participant and the account will earn interest quarterly based on the Company’s established crediting rate. Participants are immediately 100% vested for the amount of their deferral account. 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, 2015, the accrued liability of the PC Bancorp Supplemental Employee Salary Plan was $1.1 million, and the accrued liability of the Deferred Director Fee Plan was $282 thousand. The Company recorded a total of $947 thousand, $705 thousand, and $661 thousand in deferred salary compensation expense for the years ended December 31, 2015, 2014 and 2013, respectively, related to the deferred compensation plans. Split Dollar Employee Insurance Plan The Company’s accrued liability for the Split Dollar Employee Insurance Plan was $1.2 million and $1.2 million at December 31, 2015 and 2014, respectively. The Company recorded split dollar life insurance expense of $39 thousand, $38 thousand, and $36 thousand in 2015, 2014 and 2013 respectively, related to the split dollar policies. |
Defined Contribution Plan 401(k
Defined Contribution Plan 401(k) | 12 Months Ended |
Dec. 31, 2015 | |
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 California United Bank 401(k) Profit Sharing Plan (the “401(k) 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 January 1, 2013, the Company’s 401(k) Plan was amended and the “safe harbor” or guaranteed employer contributions were discontinued. The Company adopted instead, an “employer match” type of contribution for the benefit of the employees covered under the plan. The employer matching contributions are not fully vested until the employee completes five years of service. In 2013, the Company matched $0.50 on the dollar for every dollar the employee contributed to the plan, up to a maximum of 4% of the employee’s eligible compensation subject to an IRS limitation. In 2015 and 2014, the Company matched $0.50 on the dollar for every dollar the employee contributed to the plan, up to a maximum of 3% of the employee’s eligible compensation subject to an IRS limitation. The dollar amount an individual employee may contribute to this plan is subject to regulatory limits. The Company’s expense relating to the contributions made to the 401(k) plan for the benefit of its employees was $642 thousand, $418 thousand and $431 thousand for the years ended December 31, 2015, 2014, and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 19 – Income Taxes The Company provides for current federal and state income taxes payable and for deferred taxes that result from differences between financial accounting rules and tax laws governing the timing of recognition of various income and expense items. The Company recognizes deferred income tax assets and liabilities for the future tax effects of such temporary differences based on the difference between the financial statement and tax bases of the existing assets and liabilities using the statutory rate expected in the years in which the differences are expected to reverse. The effect on deferred taxes of any enacted 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 tax strategies, the Company concluded that it is more likely than not that all the benefit of the deferred tax assets will be realized, with the exception of the deferred tax assets related to certain capital loss carryforward from separate reporting years that are subject to limitation. 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, 2015, 2014, and 2013. Interest and penalties related to uncertain tax positions are recorded as part of other operating expense. Income tax expense consists of the following (dollars in thousands): Year Ended December 31, 2015 2014 2013 Current provision Federal $ 9,265 $ 4,517 $ 1,669 State 2,923 1,183 238 Total current provision 12,188 5,700 1,907 Deferred provision Federal 291 382 2,674 State 389 350 427 Total deferred provision 680 732 3,101 Total current and deferred provision $ 12,868 $ 6,432 $ 5,008 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, 2015 2014 Deferred Tax Assets Federal tax loss carryforward $ 64 $ 99 State tax loss carryforward 170 162 Allowance for loan loss 7,473 5,823 Purchase accounting and loan fair value adjustments 7,024 9,430 Accruals and other liabilities 958 1,457 Stock compensation and deferred compensation costs 5,732 6,703 Net unrealized loss on securities available-for-sale 593 — Start up, organizational and other costs 332 612 Total deferred tax assets 22,346 24,286 Deferred Tax Liabilities Net unrealized gain on securities available-for-sale — (138 ) State taxes (441 ) (1,041 ) Unamortized fair value on subordinated debentures (1,230 ) (1,310 ) Core deposit intangibles (2,984 ) (3,754 ) Prepaid expense and other (652 ) (1,524 ) Total deferred tax liabilities (5,307 ) (7,767 ) Valuation allowance (6 ) (15 ) Deferred tax assets, net $ 17,033 $ 16,504 The Company’s deferred tax assets and deferred tax liabilities include balances associated with the acquisition of 1 st Enterprise in 2014, PC Bancorp in 2012 and 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 Company has federal net operating loss carryforwards attributable to the COSB acquisition of $0 and $282 thousand and state net operating loss carryforwards of $0 and $165 thousand at December 31, 2015, and 2014, respectively. The decrease in both the federal and state net operating loss carryforwards was attributable to the Company being able to utilize all remaining carryforwards from the COSB acquisition in both federal and state net operating loss carryforwards in the 2015 tax provision. The federal and state net operating loss carryforwards from the COSB acquisition are subject to an annual limitation of $624 thousand due to the ownership change on December 31, 2010. In addition, the Company has a state tax capital loss carryforward acquired from the PC Bancorp acquisition of $54 thousand at December 31, 2015 and at December 31, 2014. The capital loss carryforward will expire in 2016. The Company has recorded a full valuation allowance against the state tax capital loss carryforward as it is more likely than not that the credit will not be realized. The Company has a $1.3 million state net operating loss carryforward at CU Bancorp that arose from CU Bancorp’s 2012 separately filed tax return. The ability to utilize this net operating loss is dependent upon allocation of sufficient consolidated income to CU Bancorp in the future based on a three-factor formula. In assessing the need for a valuation allowance against these losses, the Company carefully weighed both positive and negative evidence currently available. Based upon the evidence, the Company concluded it is more likely than not that these net operating losses will be realized before the expiration in 2032. The Company also has a $182 thousand capital loss carryforward that was generated in 2014. The Company concluded it is more likely than not that these capital loss carryforward will be realized before the expiration in 2019. The Company’s investments in Qualified Affordable Housing Projects generated low income housing tax credits and benefits net of investment amortization of $107 thousand and $146 thousand in 2015 and 2014, respectively. See Note 11 – Investments in Qualified Affordable Housing Projects for a discussion on the investments. 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, 2015 2014 2013 Amount Percent Amount Percent Amount Percent Federal income tax expense at statutory rate $ 11,937 35.00 % $ 5,369 35.00 % $ 5,178 35.00 % State franchise taxes, net of federal benefit, excluding LIHTC investments 2,236 6.55 1,209 7.88 524 3.54 Effect of rate change on net deferred tax asset — — — — (326 ) (2.20 ) Release of state valuation allowance on use of net operating loss (29 ) (0.09 ) (68 ) (0.44 ) (68 ) (0.46 ) Meals and entertainment, dues and other non-deductible items 132 0.39 75 0.49 54 0.37 Cash surrender life insurance (453 ) (1.33 ) (231 ) (1.51 ) (210 ) (1.42 ) Stock compensation expense (100 ) (0.29 ) (53 ) (0.35 ) (126 ) (0.85 ) LIHTC investments (141 ) (0.41 ) (119 ) (0.77 ) (155 ) (1.05 ) Merger costs — — 515 3.36 5 0.03 Tax Exempt Income (314 ) (0.92 ) — — — — Other (400 ) (1.17 ) (265 ) (1.73 ) 132 0.89 $ 12,868 37.73 % $ 6,432 41.93 % $ 5,008 33.85 % The Company’s federal income tax returns for the years ended December 31, 2012 through 2014 are open for examination by federal taxing authorities and the Company’s state income tax returns for the years ended December 2011 through 2014 are open for examination by state taxing authorities. The Company is undergoing an examination by the California Franchise Tax Board of the Enterprise Zone net interest deduction that the Company included in its California 2011 and 2012 tax returns. The California Franchise Tax Board has issued a closing letter with no material adjustments that impact the consolidated financial statements. During 2015, the Company concluded an examination of the 2010 and 2011 California tax return of PC Bancorp by the California Franchise Tax Board with no material adjustments that impacted the consolidated financial statements. The Company has not been notified of any other pending tax examinations by taxing authorities. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Note 20 – Shareholders’ Equity Common Stock Holders of shares of the Company’s common stock are entitled to one vote for each share held of record on all matters voted upon by shareholders. Furthermore, the holders of the Company’s common stock have no preemptive rights to subscribe for new issue securities, and shares of the Company’s common stock are not subject to redemption, conversion, or sinking fund provisions. With respect to the payment of dividends, after the preferential dividends upon all other classes and series of stock entitled thereto have been paid or declared and set apart for payment, then the holders of the Company’s common stock are entitled to such dividends as may be declared by the Company’s board of directors out of funds legally available under the laws of the State of California. Refer to Note 22 – Regulatory Matters for further discussion on restrictions on dividends. Upon the Company’s liquidation or dissolution, the assets legally available for distribution to holders of the Company’s shares of common stock, after payment of all the Company’s obligations and payment of any liquidation preference of all other classes and series of stock entitled thereto, including the Company’s preferred stock, are distributable ratably among the holders of the Company’s common stock. During 2015, the Company issued 454,019 shares of stock from the exercise of employee stock options for a total value of $4.3 million. The Company also issued 92,500 shares of restricted stock to the Company’s directors and employees, cancelled 10,675 shares of unvested restricted stock related to employee turnover and cancelled 44,311 shares of restricted stock that had a value of $971 thousand when employees elected to pay their tax obligation via the repurchase of the stock by the Company. The net issuance of restricted stock for 2015 was 81,825 shares. The Equity Plan, as amended, 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. See Note 16 – Stock Options and Restricted Stock under “Equity Compensation Plans” for a more detailed analysis related to the issuances of these shares. Preferred Stock As discussed in Note 2, Business Combinations, the Company completed the merger with 1 st Enterprise on November 30, 2014. As part of the Merger Agreement, 16,400 shares of preferred stock issued by 1 st Enterprise as part of the Small Business Lending Fund (SBLF) program of the United States Department of the Treasury was converted into 16,400 CU Bancorp shares with substantially identical terms. CU Bancorp Preferred Stock has a liquidation preference amount of $1 thousand per share, designated as the Company’s Non-Cumulative Perpetual Preferred Stock, Series A. The U.S. Department of the Treasury is the sole holder of all outstanding shares of CU Bancorp Preferred Stock. The CU Bancorp Preferred Stock had an estimated life of four years and the fair value was $16 million at the merger date, resulting in a net discount of $479 thousand. The life-to-date and the year-to-date accretion on the net discount as of December 31, 2015 is $1.1 million and $991 thousand, respectively. The net carrying value of the CU Bancorp Preferred Stock is $17 million ($16 million plus of $0.6 million net premium) as of December 31, 2015. Dividends on the Company’s Series A Preferred Stock are payable quarterly in arrears if authorized and declared by the Company’s board of directors out of legally available funds, on a non-cumulative basis, on the $1 thousand per share liquidation preference amount. Dividends are payable on January 1, April 1, July 1 and October 1 of each year. The current coupon dividend rate is fixed at 1% through January 1, 2016. The coupon dividend rate will adjust to 9% if the preferred stock remains outstanding beyond January 2016. However, the dividend yield through November 30, 2018 approximates 7% as a result of business combination accounting. Dividends on the Series A Preferred Stock are non-cumulative. There is no sinking fund with respect to dividends on the Series A Preferred Stock. So long as the Company’s Series A Preferred Stock remains outstanding, the Company may declare and pay dividends on the common stock only if full dividends on all outstanding shares of Series A Preferred Stock for the most recently completed dividend period have been or are contemporaneously declared and paid. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, holders of the Series A Preferred Stock will be entitled to receive for each share of Series A Preferred Stock, out of the Company’s assets or proceeds available for distribution to the Company’s shareholders, subject to any rights of the Company’s creditors, before any distribution of assets or proceeds is made to or set aside for the holders of the common stock, payment of an amount equal to the sum of (i) the $1 thousand liquidation preference amount per share and (ii) the amount of any accrued and unpaid dividends on the Series A Preferred Stock. To the extent the assets or proceeds available for distribution to shareholders are not sufficient to fully pay the liquidation payments owing to the holders of the Series A Preferred Stock and the holders of any other class or series of the stock ranking equally with the Series A Preferred Stock, the holders of the Series A Preferred Stock and such the Company’s stock will share ratably in the distribution. Holders of the Series A Preferred Stock have no right to exchange or convert their shares into common stock or any other securities and do not have voting rights. 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 Year ended December 31, 2015 Net unrealized gains (losses) on investment securities: Beginning balance $ 333 $ (143 ) $ 190 Net unrealized gain (losses) arising during the period (1,742 ) 736 (1,006 ) Ending balance $ (1,409 ) $ 593 $ (816 ) Before Tax Net of Year ended December 31, 2014 Net unrealized gains (losses) on investment securities: Beginning balance $ (348 ) $ 143 $ (205 ) Net unrealized gain (losses) arising during the period 681 (286 ) 395 Ending balance $ 333 $ (143 ) $ 190 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 21 – Commitments and Contingencies The Company follows accounting guidance related to “Accounting for Contingencies” which provides criteria for determining whether a company must accrue or disclose 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.” 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, 2015, 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 $806 million and $720 million at December 31, 2015 and 2014, respectively. Included in the aforementioned commitments were standby letters of credit outstanding of $73 million and $57 million at December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, the Company had established reserve for estimated losses on unfunded loan commitments of $608 thousand and $471 thousand, respectively. These balances are included in other liabilities on the balance sheet. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Regulatory Matters | Note 22 – 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 Risk-based 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 Risk-Based Capital. The Company also currently includes in its Tier 1 capital an amount of Non-Cumulative Perpetual Preferred Stock, Series A issued under the SBLF program. The U.S. Department of the Treasury is the sole holder of all outstanding shares of CU Bancorp Preferred Stock. Under the Final Rule, the CU Bancorp Preferred Stock will continue to be included in Tier 1 risk-based capital. As of December 31, 2015, 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, Common Equity Tier 1 and Tier 1 leverage ratios, as set forth in the following table. The following tables present the Total risk-based capital ratio, Tier 1 risk-based capital ratio, Common equity tier 1 ratio and the Tier 1 leverage ratio of the consolidated Company in addition to the Bank as of December 31, 2015, and December 31, 2014, 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 December 31, December 31, Adequately Well Capitalized Amount Amount (greater than or equal to) Regulatory Capital Ratios: Tier 1 leverage ratio 9.67 % 12.92 % 4.0 % 5.00 % Common Equity Tier 1 ratio 9.61 % — 4.5 % 6.5 % Total Tier 1 risk-based capital ratio 10.85 % 10.95 % 6.0 % 8.0 % Total risk-based capital ratio 11.54 % 11.61 % 8.0 % 10.0 % Regulatory Capital Data: Common Equity Tier 1 $ 223,977 — Total Tier 1 capital 252,681 $ 218,147 Total risk-based capital 268,971 231,228 Average total assets* 2,611,774 1,689,096 Risk-weighted assets 2,329,770 1,992,043 * Represents the average total assets for the leverage ratio California United Bank: December 31, December 31, Adequately Well Capitalized Amount Amount (greater than or equal to) Regulatory Capital Ratios: Tier 1 leverage ratio 9.34 % 12.44 % 4.0 % 5.0 % Common Equity Tier 1 ratio 10.47 % — 4.5 % 6.5 % Total Tier 1 risk-based capital ratio 10.47 % 10.55 % 6.0 % 8.0 % Total risk-based capital ratio 11.17 % 11.20 % 8.0 % 10.0 % Regulatory Capital Data: Common Equity Tier 1 $ 243,989 — Tier 1 capital 243,989 $ 210,031 Total risk-based capital 260,279 223,112 Average total assets* 2,612,206 1,688,308 Risk-weighted assets 2,329,798 1,991,253 * Represents the average total assets for the leverage ratio Restrictions on Dividends As discussed in Note 2, Business Combinations, the Company completed the merger with 1 st Enterprise on November 30, 2014. As part of the Merger Agreement, 16,400 shares of preferred stock issued by 1 st Enterprise as part of the SBLF program of the United States Department of Treasury was converted into substantially 16,400 identical shares with identical terms. In December 2015, the Board approved a quarterly dividend payment on the preferred shares of $41 thousand to the United States Department of the Treasury. 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, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Information | Note 23 – 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 evaluation 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 and Held-to-Maturity 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. Securities classified as held-to-maturity are accounted for at their amortized historical cost. The Company considers the inputs utilized to fair value the available-for-sale and held-to-maturity investment 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 available-for-sale and held-to-maturity investment 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 Impaired Loans Interest Rate Swap Contracts The fair value of the interest rate swap contracts are provided by an independent third party vendors that specializes in interest rate risk management and fair value analysis using a model that utilizes current market data to estimate cash flows of the interest rate swaps utilizing the future London Interbank Offered Rate (“LIBOR”) yield curve for accruing and the future Overnight Index Swap Rate (“OIS”) yield curve for discounting through the maturity date of the interest rate swap contract. The future 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 SBA Servicing Asset Non-Maturing Deposits Maturing Deposits Securities Sold under Agreements to Repurchase (“Repos”) Subordinated Debentures Fair Value of Commitments : Interest 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): Fair Value Quoted Prices Significant Significant Financial Assets – December 31, 2015 Investment securities available-for-sale $ 315,785 $ — $ 315,785 $ — Interest Rate Swap Contracts 881 — 881 — Financial Liabilities – December 31, 2015 Interest Rate Swap Contracts $ 2,545 $ — $ 2,545 $ — Financial Assets – December 31, 2014 Investment securities available-for-sale $ 226,962 $ — $ 226,962 $ — Interest Rate Swap Contracts 719 — 719 — Financial Liabilities – December 31, 2014 Interest Rate Swap Contracts $ 3,515 $ — $ 3,515 $ — At December 31, 2015 and 2014, the Company had no financial assets or liabilities that were measured at fair value on a recurring basis that required the use of significant unobservable inputs (Level 3). Additionally, there were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a recurring basis for the periods ended December 31, 2015 and 2014. 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 fair value that were recognized at fair value below cost at the end of or during the period. There were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a non-recurring basis for the period ended December 31, 2015. 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): Net Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Financial Assets – December 31, 2015 Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) $ — $ — $ — $ — Other real estate owned 325 — — 325 Total $ 325 $ — $ — $ 325 Financial Assets – December 31, 2014 Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs offs (non-purchased credit impaired loans) $ 1,172 $ — $ — $ 1,172 Other real estate owned 850 — — 850 Total $ 2,022 $ — $ — $ 2,022 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 Valuation Methodology Valuation Model and/or Factors Unobservable Financial Assets – December 31, 2015 Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off $— — — — Other real estate owned 325 Broker opinion of Sales approach Estimated selling 6% Total $ 325 Financial Assets – December 31, 2014 Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off $ 1,172 Credit loss Credit loss factors 10%-80% Estimated selling 15% Other real estate owned 850 Residential real Sales approach Estimated selling 6% Total $ 2,022 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 on a 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, 2015 and December 31, 2014. 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 assets and liabilities 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 carrying amounts and fair values of financial instruments based on their fair value hierarchy indicated (dollars in thousands): Fair Value Measurements Carrying Fair Value Quoted Prices in Active for Assets Significant Significant December 31, 2015 Financial Assets Investment securities available-for-sale $ 315,785 315,785 $ — $ 315,785 $ — Investment securities held-to-maturity 42,036 42,339 — 42,339 — Loans, net 1,817,481 1,851,220 — — 1,851,220 Interest rate swap contracts 881 881 — 881 — Financial Liabilities — Certificates of deposit 58,502 58,502 — 58,502 — Securities sold under agreements to repurchase 14,360 14,360 — 14,360 — Subordinated debentures 9,697 12,372 — 12,372 — Interest rate swap contracts 2,545 2,545 — 2,545 — Fair Value Measurements Carrying Fair Value Quoted Prices in Active for Assets Significant Significant December 31, 2014 Financial Assets Investment securities available-for-sale $ 226,962 226,962 $ — $ 226,962 $ — Investment securities held-to-maturity 47,147 47,159 — 47,159 — Loans, net 1,612,113 1,627,717 — — 1,627,717 Interest rate swap contracts 719 719 — 719 — Financial Liabilities Certificates of deposit 64,840 64,857 — 64,857 — Securities sold under agreements to repurchase 9,411 9,411 — 9,411 — Subordinated debentures 9,538 12,372 — 12,372 — Interest rate swap contracts 3,515 3,515 — 3,515 — |
Reclassification
Reclassification | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Reclassification | Note 24 – 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, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary Quarterly Data | Note 25 – Summary Quarterly Data (unaudited) 2015 Quarters Ended 2014 Quarters Ended (Dollars in thousands, except per share data) Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Interest income $ 23,807 $ 23,106 $ 21,941 $ 21,288 $ 16,264 $ 13,238 $ 13,039 $ 12,636 Interest expense 705 704 668 646 528 470 461 463 Net interest income 23,102 22,402 21,273 20,642 15,736 12,768 12,578 12,173 Provision for loan losses 2,249 705 683 1,443 1,721 35 408 75 Net interest income after provision for loan losses 20,853 21,697 20,590 19,199 14,015 12,733 12,170 12,098 Non-interest income 3,039 2,988 3,095 2,608 2,132 2,004 1,783 1,790 Non-interest expense 15,073 15,067 14,912 14,913 14,107 10,031 9,698 9,549 Net income before provision for income tax expense 8,819 9,618 8,773 6,894 2,040 4,706 4,255 4,339 Provision for income tax 3,312 3,355 3,506 2,695 733 2,157 1,869 1,673 Net Income $ 5,507 $ 6,263 $ 5,267 $ 4,199 $ 1,307 $ 2,549 $ 2,386 $ 2,666 Preferred stock dividends and discount accretion $ 297 $ 293 $ 312 $ 272 $ 124 $ — $ — $ — Net Income Available to Common Shareholders $ 5,210 $ 5,970 $ 4,955 $ 3,927 $ 1,183 $ 2,549 $ 2,386 $ 2,666 Basic income per share $ 0.31 $ 0.36 $ 0.30 $ 0.24 $ 0.09 $ 0.23 $ 0.22 $ 0.25 Diluted income per share $ 0.30 $ 0.35 $ 0.29 $ 0.23 $ 0.09 $ 0.23 $ 0.21 $ 0.24 |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company | Note 26 – Condensed Financial Information of Parent Company The following tables present the parent company only condensed balance sheets and the related statements of income and condensed statements of cash flows for the dates and periods indicated (dollars in thousands): Parent Company Only Condensed Balance Sheets December 31, 2015 2014 ASSETS Cash and due from banks $ 6,756 $ 4,612 Loans 882 1,410 Investment in subsidiary 310,263 284,216 Accrued interest receivable and other assets 4 103 Total Assets $ 317,905 $ 290,341 LIABILITIES Subordinated debentures $ 9,697 $ 9,538 Accrued interest payable and other liabilities 1,401 1,611 Total Liabilities 11,098 11,149 SHAREHOLDERS’ EQUITY 306,807 279,192 Total Liabilities and Shareholders’ Equity $ 317,905 $ 290,341 Parent Company Only Condensed Statements of Income Years Ended 2015 2014 Interest Income $ 71 $ 165 Interest Expense 438 430 Operating Expenses 676 911 Total Expenses 1,114 1,341 Loss Before Income Tax Benefit and Equity in Undistributed Earnings of Subsidiary (1,043 ) (1,176 ) Income tax benefit 466 257 Loss Before Equity in Undistributed Earnings of Subsidiary (577 ) (919 ) Equity in undistributed earnings of subsidiary 21,813 9,827 Net Income $ 21,236 $ 8,908 Parent Company Only Condensed Statements of Cash Flows Years Ended 2015 2014 Cash flows from operating activities: Net income: $ 21,236 $ 8,908 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiary (21,813 ) (9,827 ) Provision for loan losses — (100 ) Net accretion of discounts/premiums (19 ) (26 ) Accretion of subordinated debenture discount 159 159 Decrease (increase) in accrued interest receivable and other assets (27 ) 1,351 Increase (decrease) in accrued interest payable and other liabilities (84 ) 396 Net cash (used in) provided by operating activities (548 ) 861 Cash flows from investing activities: Cash paid for 1 st Enterprise fractional shares and dissenting shareholder — (89 ) Capital contribution made to subsidiary (1,000 ) (2,500 ) Net decrease in loans 547 502 Net cash used in investing activities (453 ) (2,087 ) Cash flows from financing activities: Net proceeds from exercise of stock options 4,299 2,029 Issuance costs of common stock for 1 st Enterprise merger — (27 ) Restricted stock repurchase (971 ) (471 ) Dividends paid on preferred stock (183 ) (41 ) Net cash provided by financing activities 3,145 1,490 Net increase in cash 2,144 264 Cash, beginning of year 4,612 4,348 Cash, end of year $ 6,756 $ 4,612 Supplemental disclosures of cash flow information: Cash paid during the period for interest $ 277 $ 270 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 27 – Related Party Transactions During 2015 and 2014, there were no existing transactions that are out of the ordinary course of business between CU Bancorp and its affiliates, including executive officers, directors, principal shareholders (beneficial owners of 5% or more of our Common Stock), or the immediate family or associates of any of the foregoing persons, or trust for the benefit of employees such as a 401(k) trust. Some of CU Bancorp’s directors and executive officers, as well as the companies with which such directors and executive officers are associated, are customers of, and have had banking transactions with California United Bank in the ordinary course of business. All such transactions are on substantially the same terms, including interest and collateral as those prevailing for comparable transactions with others. At the present time, California United Bank has two lending relationships with its directors and officers or entities associated with any of its directors or officers. California United Bank also engages in deposit transactions with its executive officers and directors, and their immediate family or corporations of which the directors or officers may own a controlling interest, or also serve as directors or officers. These transactions are expected to take place on substantially the same terms, including interest, as those prevailing for comparable transactions with others. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 28 – Subsequent Events We have evaluated events that have occurred subsequent to December 31, 2015 and have concluded there are no subsequent events that would require recognition in the accompanying consolidated financial statements. |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 U.S. generally accepted accounting principles (“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 Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in conformity with GAAP 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 consolidated 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, among other factors, 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 Combinations | Business Combinations The Company has a number of fair value adjustments recorded within the consolidated financial statements at December 31, 2015 that relate to the business combinations with California Oaks State Bank “COSB”, Premier Commercial Bancorp “PC Bancorp” and 1 st Enterprise Bank “1 st Enterprise” on December 31, 2010, July 31, 2012 and November 30, 2014, respectively. These fair value adjustments includes goodwill, fair value adjustments on loans, core deposit intangible assets, other intangible assets, fair value adjustments to acquired lease obligations, fair value adjustments to certificates of deposit and fair value adjustments on derivatives. The assets and liabilities acquired through acquisitions have been accounted for at fair value as of the date of the acquisition. The goodwill that was recorded on the transactions represented the excess of the purchase price over the fair value of net assets acquired. Goodwill is not amortized and is reviewed for impairment on October 1st of each year. If an event occurs or circumstances change that result in the Company’s fair value declining below its book value, the Company would perform an impairment analysis at that time. Based on the Company’s 2015 goodwill impairment analysis, no impairment to goodwill has occurred. The Company is a sole reporting unit for evaluation of goodwill. The core deposit intangibles on non-maturing deposits, which represent the intangible value of depositor relationships resulting from deposit liabilities assumed through acquisitions, are being amortized over the projected useful lives of the deposits. The weighted average remaining life of the core deposit intangible is estimated at approximately 7.9 years at December 31, 2015. Core deposit intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Loans acquired through acquisition are recorded at fair value at acquisition date without a carryover of the related Allowance. Purchased Credit Impaired (“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. For non-PCI loans, loan fair value adjustments consist of an interest rate premium or discount on each individual loan and are amortized to loan interest income based on the effective yield method over the remaining life of the loans. Subsequent decreases to the expected cash flows for both PCI and non-PCI loans will result in a provision for loan losses. |
Business Segments | Business Segments The Company is organized and operates as a single reporting segment, principally engaged in commercial business banking. The Company conducts its lending and deposit operations through nine full service branch offices located in Los Angeles, Orange, Ventura and San Bernardino 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 $14 million and $12 million were required by the Federal Reserve Bank of San Francisco as of December 31, 2015 and 2014, respectively. As of December 31, 2015, the Bank was in compliance with all known U.S. Federal Reserve Bank (“Federal Reserve”) reporting and reserve requirements. |
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, and interest earning deposits with the 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 thousand and have an original maturity of between 30 days and 12 months. The current remaining maturities of the Company’s certificates of deposit in other financial institutions at December 31, 2015 range from 4 days to 12 months with a weighted average maturity of 6.9 months and a weighted average yield of 0.81%. At December 31, 2015 and 2014, respectively, the Company had $2.7 million and $4.1 million of certificates of deposits pledged as collateral for its interest rate swap agreements with two counterparty banks. |
Concentrations and Credit Risk in Other Financial Institutions | 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, 2015, 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 $47 million in non-interest bearing accounts, $60 million in interest bearing accounts, and $2.5 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 currently classifies its investment securities under the available-for-sale and held-to-maturity classifications. Under the available-for-sale classification, securities can be sold in response to certain conditions, such as changes in interest rates, changes in the credit quality of the securities, when the credit quality of a security does not conform with current investment policy guidelines, fluctuations in deposit levels or loan demand or a 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 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. If the Company has the intent and the ability at the time of purchase to hold certain securities until maturity, they are classified as held-to-maturity and are stated at amortized cost. 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 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) any financial guarantee and financial condition of the guarantor 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 OTTI 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 the amount of the OTTI 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 the underlying collateral. 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. The amount of prepayments varies from time to time based on the interest rate environment and the rate of turnover of mortgages. The Company’s investment in the common stock of the FHLB, Pacific Coast Bankers Bank (“PCBB”) and The Independent Banker’s Bank (“TIB”) is carried at cost and is included in other assets on the accompanying consolidated balance sheets. |
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 Company’s investment in FHLB stock is included in other assets on the accompanying consolidated balance sheets. |
Loans and Interest and Fees on Loans | Loans and Interest and Fees on Loans The Company extends commercial, Small Business Administration, 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 charge offs, net of deferred loan fees and costs on originated loans, net of unearned discounts and unamortized premiums on acquired loans, and further reduced by the valuation allowance for loan losses. Nonrefundable loan fees and direct costs associated with the origination of loans are deferred and recognized in interest income over the loan term using the level yield method. Further, discounts or premiums on acquired loans are accreted or amortized to 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 commercial real estate 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” and Note 14 – Derivative Financial Instruments. Nonaccrual loans: 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: Troubled debt restructurings 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 would grant 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. Typical concessions include reductions to the stated interest rate, payment extensions, principal forgiveness and other actions. A loan that is modified at a market rate of interest will not be classified as a 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, 2015 and 2014, 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 non-interest 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 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, 2015 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 allowance is established when the realizable 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 allowance. The individual loan is evaluated for a specific allowance 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. Impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. • Not all impaired loans require a specific allowance. 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. In those instances, neither a general allowance nor a specific allowance 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 seven 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 ("OREO") | Other Real Estate Owned (“OREO”) 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. Gains and losses on the sale of OREOs and operating expenses of such assets are included in non-interest expense, and operating revenue of such assets is included in non-interest income. |
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 1 st as the date to perform its annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives. Goodwill is the only intangible asset with an indefinite life on the Company’s consolidated balance sheets. There was no impairment as of December 31, 2015 or 2014. The increase in goodwill in 2014 and 2015 was the result of the merger with 1 st Enterprise Bank on November 30, 2014. 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 consolidated balance sheets. Leasehold right intangible is the present value of the excess of market rate lease payments over the contractual lease payments of an acquired lease. 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 consolidated balance sheets. |
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). |
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 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. Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging, 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. At inception and on an ongoing basis, the derivatives that are used in hedging transactions are assessed for effectiveness 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 The Company provides for current federal and state income taxes payable and for deferred taxes that result from differences between financial accounting rules and tax laws governing the timing of recognition of various income and expense items. The Company recognizes deferred income tax assets and liabilities for the future tax effects of such temporary differences based on the difference between the financial statement and tax bases of the existing assets and liabilities using the statutory rate expected in the years in which the differences are expected to reverse. The effect on deferred taxes of any enacted change in tax rates is recognized in income in the period that includes the enactment date. 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 loss carryforwards depends on having sufficient taxable income of an appropriate character within the carryback and 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 realization of an item, the Company may only record the tax effects (expense or benefits) from an uncertain tax position in the consolidated 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. Interest and penalties related to uncertain tax positions are recorded as part of other operating expense. |
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. The Company also classifies items of other comprehensive income by their nature in the Consolidated Statements of Comprehensive Income. |
Earnings per Share ("EPS") | Earnings per Share (“EPS”) Basic earnings per common share 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 November 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606) In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement Period Adjustments On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities On February 25, 2016, the FASB issued ASU 2016-02, Leases |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Fair Value of Consideration Transferred, Fair Value Adjustments to Balance Sheet and Resulting Goodwill | The following table summarizes the fair value of the total consideration transferred as part of the merger with 1st Enterprise as well as the fair value adjustments to 1st Enterprise’s balance sheet as of the acquisition date and the resulting goodwill (dollars in thousands): November 30, 2014 Consideration paid: CU Bancorp common stock issued $ 102,712 CU Bancorp preferred stock issued 15,921 Fair value of 1st Enterprise stock options 9,561 Cash paid to a dissenter shareholder 87 Cash in lieu of fractional shares paid to 1st Enterprise shareholders 2 Total consideration 128,283 Net assets of 1st Enterprise at November 30, 2014 75,205 Fair value adjustments: Investment securities $ 1,779 Loans, net (12,362 ) Premises and equipment (377 ) Deferred taxes 3,019 Core deposits and leasehold intangibles 7,424 Other assets (52 ) Other liabilities 1,989 Total fair value adjustments 1,420 Fair value of net assets acquired $ 76,625 Excess of consideration paid over fair value of net assets acquired (goodwill) $ 51,658 |
Fair Value of Loans Pursuant to Accounting Standards for PCI and Non-PCI Loans | The following table presents the fair value of loans pursuant to accounting standards for PCI and non-PCI loans as of the 1 st Enterprise acquisition date (dollars in thousands): November 30, 2014 PCI Non-PCI Total Contractually required payments $ 577 $ 569,276 $ 569,853 Less: non-accretable difference (108 ) — (108 ) Cash flows expected to be collected (undiscounted) 469 569,276 569,745 Accretable yield — (16,562 ) (16,562 ) Fair value of acquired loans $ 469 $ 552,714 $ 553,183 |
1st Enterprise Bank | |
Fair Values of Consideration Paid, Assets Acquired and Liabilities Assumed as of Date of Acquisition | In connection with the merger, the consideration paid, the assets acquired, and the liabilities assumed were recorded at fair value on the date of acquisition, as summarized in the following table (dollars in thousands): November 30, 2014 Assets acquired: Cash and due from banks $ 8,739 Interest earning deposits in other financial institutions 11,554 Investment securities available-for-sale 117,407 Investment securities held-to-maturity 47,457 Loans 553,183 Premises and equipment, net 1,830 Deferred tax asset 5,682 Goodwill 51,658 Core deposit and leasehold right intangibles 7,533 Bank owned life insurance 16,871 Accrued interest receivable and other assets 11,583 Total assets acquired $ 833,497 Liabilities assumed: Deposits $ 703,358 Accrued interest payable and other liabilities 1,856 Total liabilities assumed $ 705,214 Total consideration paid: CU Bancorp common stock issued $ 102,712 CU Bancorp preferred stock issued 15,921 Fair value of 1st Enterprise stock options 9,561 Cash paid to a dissenter shareholder 87 Cash in lieu of fractional shares paid to 1st Enterprise shareholders 2 Total Consideration $ 128,283 |
Schedule of Pro Forma Information | The following table presents (unaudited) financial information regarding 1 st Enterprise operations included in our consolidated statement of income from the date of acquisition, November 30, 2014, through December 31, 2014. The following table also presents (unaudited) pro forma information for the periods indicated as though the 1 st Enterprise merger had been completed as of January 1, 2013. The 2014 pro forma net income excludes historical non-recurring merger expenses net of taxes, totaling approximately $3.2 million for the Company and 1 st Enterprise (dollars in thousands, except per share data). 1 st Proforma Year ended Proforma Year ended December 31, 2014 2014 2013 Net interest income after provision for loan losses $ 2,023 $ 77,140 $ 68,771 Net income $ 766 $ 17,218 $ 15,299 Preferred stock dividends and discount accretion (1,234 ) (889 ) Net income available to common shareholders $ 15,984 $ 14,410 Diluted earnings per share $ 0.94 $ 0.87 |
Computation of Book Value and40
Computation of Book Value and Tangible Book Value per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 share and per share data): December 31, 2015 2014 Total Shareholders’ Equity $ 306,807 $ 279,192 Less: Preferred stock 16,995 16,004 Less: Goodwill 64,603 63,950 Less: Core deposit and leasehold right intangibles 7,671 9,547 Tangible Shareholders’ Equity 217,538 $ 189,691 Common shares issued and outstanding 17,175,389 16,683,856 Book value per common share $ 16.87 $ 15.78 Tangible book value per common share $ 12.67 $ 11.37 |
Computation of Earnings per C41
Computation of Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share Computations | The following table shows weighted average basic common shares outstanding, potential dilutive shares related to stock options, unvested restricted stock, and weighted average diluted shares for the periods indicated (dollars in thousands, except share and per share data): Years Ended December 31, 2015 2014 2013 Net Income $ 21,236 $ 8,908 $ 9,785 Less: Preferred stock dividends and discount accretion 1,174 124 — Net Income available to common shareholders $ 20,062 $ 8,784 $ 9,785 Weighted average basic common shares outstanding 16,543,787 11,393,445 10,567,436 Dilutive effect of potential common share issuances from stock options and restricted stock 439,434 274,288 269,425 Weighted average diluted common shares outstanding 16,983,221 11,667,733 10,836,861 Income per common share Basic $ 1.21 $ 0.77 $ 0.93 Diluted $ 1.18 $ 0.75 $ 0.90 Anti-dilutive shares not included in the calculation of diluted earnings per share 32,811 79,000 81,000 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Values of Investment Securities | The following tables present the amortized cost, gross unrealized gains and losses, and fair values of investment securities by major category as of the dates indicated (dollars in thousands): Gross Unrealized December 31, 2015 Amortized Cost Gains Losses Fair Value Available-for-sale: U.S. Govt Agency and Sponsored Agency – Note Securities $ 1,014 $ — $ — $ 1,014 U.S. Govt Agency – SBA Securities 93,674 399 583 93,490 U.S. Govt Agency – GNMA Mortgage-Backed Securities 30,916 202 418 30,700 U.S. Govt Sponsored Agency – CMO & Mortgage-Backed Securities 97,693 250 789 97,154 Corporate Securities 4,016 7 — 4,023 Municipal Securities 1,010 1 — 1,011 Asset Backed Securities 7,890 — 243 7,647 U.S. Treasury Notes 80,981 — 235 80,746 Total available-for-sale 317,194 859 $ 2,268 315,785 Held-to-maturity: Municipal Securities 42,036 335 32 42,339 Total held-to-maturity 42,036 335 $ 32 42,339 Total investment securities $ 359,230 $ 1,194 $ 2,300 $ 358,124 Gross Unrealized December 31, 2014 Amortized Cost Gains Losses Fair Value Available-for-sale: U.S. Govt Agency and Sponsored Agency – Note Securities $ 2,036 $ 2 $ — $ 2,038 U.S. Govt Agency – SBA Securities 54,062 770 345 54,487 U.S. Govt Agency – GNMA Mortgage-Backed Securities 29,364 255 277 29,342 U.S. Govt Sponsored Agency – CMO & Mortgage-Backed Securities 107,348 457 577 107,228 Corporate Securities 4,043 77 — 4,120 Municipal Securities 1,039 11 — 1,050 Asset Backed Securities 8,711 1 40 8,672 U.S. Treasury Notes 20,031 — 6 20,025 Total available-for-sale 226,634 1,573 $ 1,245 226,962 Held-to-maturity: Municipal Securities 47,147 169 157 47,159 Total held-to-maturity 47,147 169 $ 157 47,159 Total investment securities $ 273,781 $ 1,742 $ 1,402 $ 274,121 |
Gross Unrealized Losses and Fair Values of AFS and HTM Investment Securities that were in Unrealized Loss Positions | The following tables present the gross unrealized losses and fair values of AFS and HTM investment securities that were in unrealized loss positions, summarized and classified according to the duration of the loss period as of the dates indicated (dollars in thousands). < 12 Continuous > 12 Continuous Total December 31, 2015 Fair Gross Fair Gross Fair Gross Available-for-sale investment securities: U.S. Govt. Agency – SBA Securities $ 53,852 $ 428 $ 7,935 $ 154 $ 61,787 $ 582 U.S. Govt. Agency – GNMA Mortgage-Backed Securities 5,417 47 14,296 371 19,713 418 U.S. Govt. Sponsored Agency CMO & Mortgage-Backed Securities 67,475 564 10,024 225 77,499 789 Asset Backed Securities 2,928 54 4,719 190 7,647 244 U.S. Treasury Notes 80,745 235 — — 80,745 235 Total available-for-sale investment securities $ 210,417 $ 1,328 $ 36,974 $ 940 $ 247,391 $ 2,268 Held-to-maturity investment securities: Municipal Securities $ 5,669 $ 16 $ 2,392 $ 16 $ 8,061 $ 32 Total held-to-maturity investment securities $ 5,669 $ 16 $ 2,392 $ 16 $ 8,061 $ 32 < 12 Continuous > 12 Continuous Total December 31, 2014 Fair Gross Fair Gross Fair Gross Available-for-sale investment securities: U.S. Govt. Agency – SBA Securities $ 10,688 $ 87 $ 10,095 $ 258 $ 20,783 $ 345 U.S. Govt. Agency – GNMA Mortgage-Backed Securities 12,784 65 8,784 212 21,568 277 U.S. Govt. Sponsored Agency CMO & Mortgage-Backed Securities 64,360 413 6,584 164 70,944 577 Asset Backed Securities 4,849 40 — — 4,849 40 U.S. Treasury Notes 20,025 6 — — 20,025 6 Total available-for-sale investment securities $ 112,706 $ 611 $ 25,463 $ 634 $ 138,169 $ 1,245 Held-to-maturity investment securities: Municipal Securities $ 23,966 $ 157 $ — $ — $ 23,966 $ 157 Total held-to-maturity investment securities $ 23,966 $ 157 $ — $ — $ 23,966 $ 157 |
Maturities Schedule of Securities | December 31, 2015 Maturities Schedule of Securities (Dollars in thousands) Amortized Fair Value Weighted Available-for-sale: Due through one year $ 66,330 $ 66,185 1.07 % Due after one year through five years 147,915 147,115 1.27 % Due after five years through ten years 82,063 81,624 1.88 % Due after ten years 20,886 20,861 2.84 % Total available-for-sale 317,194 315,785 1.49 % Held-to-maturity: Due through one year 2,237 2,243 1.77 % Due after one year through five years 34,307 34,506 1.58 % Due after five years through ten years 5,492 5,590 1.96 % Total held-to-maturity 42,036 42,339 1.64 % Total investment securities $ 359,230 $ 358,124 1.50 % |
Composition of Interest Income on Investment Securities | The following table presents the composition of interest income on investment securities for the periods indicated (dollars in thousands): Years ended December 31, 2015 2014 2013 Taxable interest $ 3,773 $ 2,331 $ 1,913 Non-taxable interest 745 38 — Total interest income on investment securities $ 4,518 $ 2,369 $ 1,913 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Commercial and Industrial Loans: $ 537,368 $ 528,517 Loans Secured by Real Estate: Owner-Occupied Nonresidential Properties 407,979 339,309 Other Nonresidential Properties 533,168 481,517 Construction, Land Development and Other Land 125,832 72,223 1-4 Family Residential Properties 114,525 121,985 Multifamily Residential Properties 71,179 52,813 Total Loans Secured by Real Estate 1,252,683 1,067,847 Other Loans: 43,112 28,359 Total Loans $ 1,833,163 $ 1,624,723 |
Company's Loan Portfolio 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, 2015 2014 Real Estate $ 857,021 $ 744,663 Manufacturing 174,773 161,233 Construction 161,618 113,763 Wholesale 134,093 124,336 Hotel/Lodging 105,741 88,269 Finance 87,734 96,074 Professional Services 60,952 64,215 Healthcare 47,293 43,917 Other Services 45,002 45,781 Retail 38,928 35,503 Restaurant/Food Service 26,226 24,525 Administrative Management 23,736 28,016 Transportation 22,237 18,158 Information 20,171 15,457 Education 9,244 10,253 Management 8,137 1,606 Entertainment 6,188 8,284 Other 4,069 670 Total $ 1,833,163 $ 1,624,723 |
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, 2015 2014 2013 Allowance for loan loss at beginning of year $ 12,610 $ 10,603 $ 8,803 Provision for loan losses 5,080 2,239 2,852 Net (charge-offs) recoveries: Charge-offs (2,510 ) (692 ) (1,912 ) Recoveries 502 460 860 Net (charge-offs) (2,008 ) (232 ) (1,052 ) Allowance for loan loss at end of year $ 15,682 $ 12,610 $ 10,603 Net (charge-offs) to average loans (0.12 )% (0.02 )% (0.12 )% Allowance for loan loss to total loans 0.86 % 0.78 % 1.14 % Allowance for loan loss to total loans accounted for at historical cost, which excludes purchased loans acquired by acquisition 1.25 % 1.39 % 1.50 % |
Changes in Allowance for Loan Loss | The following tables present, by portfolio segment, the changes in the allowance for loan loss and the recorded investment in loans as of the dates and for the periods indicated (dollars in thousands): Commercial and Industrial Construction, Land Development and Other Land Commercial Other Real Other Total Year ended – December 31 2015 Allowance for loan loss – Beginning balance $ 5,864 $ 1,684 $ 4,802 $ 260 $ 12,610 Provision for loan losses 1,781 392 2,306 601 5,080 Net (charge-offs) recoveries: Charge-offs (2,218 ) — (292 ) — (2,510 ) Recoveries 497 — 5 — 502 Total net (charge-offs) (1,721 ) — (287 ) — (2,008 ) Ending balance $ 5,924 $ 2,076 $ 6,821 $ 861 $ 15,682 Commercial and Industrial Construction, Land Development and Other Land Commercial Other Real Other Total Year ended – December 31 2014 Allowance for loan loss – Beginning balance $ 5,534 $ 1,120 $ 3,886 $ 63 $ 10,603 Provision for loan losses 595 564 883 197 2,239 Net (charge-offs) recoveries: Charge-offs (619 ) — (73 ) — (692 ) Recoveries 354 — 106 — 460 Total net (charge-offs) recoveries (265 ) — 33 — (232 ) Ending balance $ 5,864 $ 1,684 $ 4,802 $ 260 $ 12,610 |
Schedule Represents both Allowance for Loan Loss and Associated Loan Balance Classified by Loan Portfolio Segment and by Credit Evaluation Methodology | The following tables present 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 and Industrial Construction, Land and Other Land Commercial Other Real Other Total December 31, 2015 Allowance for loan loss: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 5,924 2,076 6,821 861 15,682 Purchased credit impaired (loans acquired with deteriorated credit quality) — — — — — Total Allowance for Loan Loss $ 5,924 $ 2,076 $ 6,821 $ 861 $ 15,682 Loans receivable: Individually evaluated for impairment $ 558 $ — $ 649 $ — $ 1,207 Collectively evaluated for impairment 536,333 125,832 1,124,667 43,112 1,829,944 Purchased credit impaired (loans acquired with deteriorated credit quality) 477 — 1,535 — 2,012 Total Loans Receivable $ 537,368 $ 125,832 $ 1,126,851 $ 43,112 $ 1,833,163 Commercial and Industrial Construction, Land and Other Land Commercial Other Real Other Total December 31, 2014 Allowance for loan loss: Individually evaluated for impairment $ 222 $ — $ — $ — $ 222 Collectively evaluated for impairment 5,642 1,684 4,802 260 12,388 Purchased credit impaired (loans acquired with deteriorated credit quality) — — — — — Total Allowance for Loan Loss $ 5,864 $ 1,684 $ 4,802 $ 260 $ 12,610 Loans receivable: Individually evaluated for impairment $ 1,914 $ — $ 737 $ — $ 2,651 Collectively evaluated for impairment 525,910 72,223 993,195 28,359 1,619,687 Purchased credit impaired (loans acquired with deteriorated credit quality) 693 — 1,692 — 2,385 Total Loans Receivable $ 528,517 $ 72,223 $ 995,624 $ 28,359 $ 1,624,723 |
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): December 31, 2015 Commercial Construction, Commercial Other Real Other Total Pass $ 503,006 $ 125,832 $ 1,101,548 $ 40,132 $ 1,770,518 Special Mention 16,041 — 6,494 43 22,578 Substandard 18,321 — 18,809 2,937 40,067 Doubtful — — — — — Total $ 537,368 $ 125,832 $ 1,126,851 $ 43,112 $ 1,833,163 December 31, 2014 Commercial Construction, Commercial Other Real Other Total Pass $ 502,624 $ 72,223 $ 977,525 $ 28,358 $ 1,580,730 Special Mention 8,738 — 4,878 — 13,616 Substandard 17,155 — 13,221 1 30,377 Doubtful — — — — — Total $ 528,517 $ 72,223 $ 995,624 $ 28,359 $ 1,624,723 |
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): December 31, 2015 31-60 Days Past Due 61-90 Days Past Due Greater 90 Days Past Due and Total Past Due and Total Non- Current Total Loans Commercial and Industrial $ — $ — $ — $ — $ 1,032 $ 536,336 $ 537,368 Construction, Land Development and Other Land — — — — — 125,832 125,832 Commercial and Other Real Estate — — — — 1,019 1,125,832 1,126,851 Other — — — — — 43,112 43,112 Total $ — $ — $ — $ — $ 2,051 $ 1,831,112 $ 1,833,163 December 31, 2014 31-60 Days Past Due 61-90 Days Past Due Greater 90 Days Past Due and Total Past Due and Total Non- Current Total Loans Commercial and Industrial $ 192 $ 233 $ — $ 425 $ 2,604 $ 525,488 $ 528,517 Construction, Land Development and Other Land — — — — — 72,223 72,223 Commercial and Other Real Estate 354 — — 354 1,305 993,965 995,624 Other — — — — — 28,359 28,359 Total $ 546 $ 233 $ 0 $ 779 $ 3,909 $ 1,620,035 $ 1,624,723 |
Recorded Investment and Unpaid Principal Balances for Impaired Loans | The following tables present, by loan portfolio segment, the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable for the dates and periods indicated. This table excludes purchased credit impaired loans (loans acquired in acquisitions with deteriorated credit quality) of $2.0 million and $2.4 million at December 31, 2015 and 2014, respectively. Year ended December 31, 2015 (dollars in thousands) Recorded Unpaid Related Average Interest With no specific allowance recorded: Commercial and Industrial $ 558 $ 1,027 $ — $ 672 $ — Commercial and Other Real Estate 649 692 — 70 — With an allowance recorded: Commercial and Industrial — — — — — Commercial and Other Real Estate — — — — — Total Commercial and Industrial 558 1,027 — 672 — Commercial and Other Real Estate 649 692 — 70 — Total $ 1,207 $ 1,719 $ — $ 742 $ — Year ended December 31, 2014 (dollars in thousands) Recorded Unpaid Related Average Interest With no specific allowance recorded: Commercial and Industrial $ 520 $ 609 $ — $ 993 $ — Commercial and Other Real Estate 737 739 — 2,491 — With an allowance recorded: Commercial and Industrial 1,394 1,546 222 1,507 — Total Commercial and Industrial 1,914 2,155 222 2,500 — Commercial and Other Real Estate 737 739 — 2,491 — Total $ 2,651 $ 2,894 $ 222 $ 4,991 $ — |
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, 2015 2014 2013 Average recorded investment in impaired loans $ 742 $ 4,991 $ 7,067 Interest foregone on impaired loans $ 265 $ 421 710 Cash collections applied to reduce principal balance $ 1,118 $ 3,014 5,057 Interest income recognized on cash collections $ — $ — $ — |
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 at December 31, 2015, December 31, 2014 and December 31, 2013. These tables include TDR loans that were purchased credit impaired (“PCI”). TDR loans that are non-PCI loans are included in the Impaired Loans discussion and tables above. As of December 31, 2015, there were three PCI loans that are considered to be TDR loans with a recorded investment of $263 thousand and unpaid principal balances of $969 thousand. Year ended December 31, 2015 (dollars in thousands) Recorded Unpaid Interest Commercial and Industrial $ 627 $ 1,363 $ — Total $ 627 $ 1,363 $ — Year ended December 31, 2014 Commercial and Industrial $ 530 $ 719 $ — Commercial and Other Real Estate 114 115 — Total $ 644 $ 834 $ — Year ended December 31, 2013 Commercial and Industrial $ 541 $ 843 $ — Commercial and Other Real Estate 2,173 2,785 — Total $ 2,714 $ 3,628 $ — |
Pre and Post Modification Recorded Investment in TDR Loans | The following tables show the pre- and post-modification recorded investment in TDR loans by loan segment that have occurred during the periods indicated (dollars in thousands): Year ended December 31, 2015 Number Pre-Modification Post- Extended Maturity Date and Deferred Principal and Interest Payments: Commercial and Industrial 3 $ 1,335 $ 208 Total 3 $ 1,335 $ 208 Year ended December 31, 2014 Reduced Interest Rate and Lengthened Amortization: Commercial and Industrial 1 $ 224 $ 224 Commercial and Other Real Estate 1 114 114 Total 2 $ 338 $ 338 Year ended December 31, 2013 Reduced Interest Rate and Lengthened Amortization: Commercial and Industrial 1 $ 310 $ 310 Total 1 $ 310 $ 310 |
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, 2015 2014 Balance, beginning of year $ 21,402 $ 7,912 Accretion, included in interest income (6,274 ) (3,023 ) Additions, due to acquisition — 16,562 Reclassifications to non-accretable yield (518 ) (49 ) Balance, end of year $ 14,610 $ 21,402 |
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, 2015 December 31, 2014 Unpaid Carrying Unpaid Carrying Commercial and Industrial $ 2,331 $ 477 $ 1,205 $ 693 Commercial and Other Real Estate 2,250 1,535 3,018 1,692 Other 61 — 62 — Total $ 4,642 $ 2,012 $ 4,285 $ 2,385 |
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 31, 2015 Year Ended Balance, beginning of year $ 324 $ 395 Accretion, included in interest income (78 ) (71 ) Reclassifications from non-accretable yield — — Balance, end of year $ 246 $ 324 |
Premises and Equipment and Le44
Premises and Equipment and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Furniture and equipment $ 8,345 $ 8,489 Leasehold improvements 7,260 7,009 Total 15,605 15,498 Less: Accumulated depreciation and amortization (10,466 ) (10,121 ) Total $ 5,139 $ 5,377 |
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, 2015 (dollars in thousands): Year Amount 2016 $ 3,387 2017 3,320 2018 2,491 2019 2,344 2020 2,206 Thereafter 4,118 Total $ 17,866 |
Goodwill, Core Deposit and Le45
Goodwill, Core Deposit and Leasehold Right Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Goodwill | The following table presents changes in the carrying value of goodwill for the periods indicated (dollars in thousands): Year Ended December 31, 2015 2014 Balance, beginning of year $ 63,950 $ 12,292 Measurement-period adjustment 653 — Goodwill acquired during the year — 51,658 Impairment losses — — Balance, end of year $ 64,603 $ 63,950 Accumulated impairment losses at end of year $ — $ — |
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, 2015 2014 2013 Gross amount of CDI: Balance, beginning of year $ 9,246 $ 2,103 $ 2,103 Additions due to acquisitions — 7,143 — Balance, end of year 9,246 9,246 2,103 Accumulated Amortization: Balance, beginning of year (1,056 ) (665 ) (356 ) Amortization (1,680 ) (391 ) (309 ) Balance, end of year (2,736 ) (1,056 ) (665 ) Net CDI, end of year $ 6,510 $ 8,190 $ 1,438 |
Qualified Affordable Housing 46
Qualified Affordable Housing Project Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. In addition, the table reflects the tax credits and tax benefits recorded by the Company during 2015 and 2014, the amortization of the investment and the net impact to the Company’s income tax provision for 2015 and 2014. Also see Note 19 – Income Tax, for the impact of these investments on the Company’s effective tax rate (dollars in thousands): Qualified Affordable Housing Projects at Original Current Unfunded Tax Credits Amortization of Investments (2) Net Income Enterprise Green Communities West II LP $ 1,000 $ 604 $ 69 $ 136 $ 92 $ 44 Enterprise Housing Partners Calgreen II Fund LP 2,050 1,426 165 198 164 34 Enterprise Housing Partners XXIV LP 2,000 1,680 806 209 180 29 Total – Investments in Qualified Affordable Housing Projects $ 5,050 $ 3,710 $ 1,040 $ 543 $ 436 $ 107 Qualified Affordable Housing Projects at Original Current Unfunded Tax Credits Amortization of Investments (2) Net Income Enterprise Green Communities West II LP $ 1,000 $ 704 $ 162 $ 127 $ 84 $ 43 Enterprise Housing Partners Calgreen II Fund LP 2,050 1,588 635 229 174 55 Enterprise Housing Partners XXIV LP 2,000 1,849 1,685 160 112 48 Total – Investments in Qualified Affordable Housing Projects $ 5,050 $ 4,141 $ 2,482 $ 516 $ 370 $ 146 Qualified Affordable Housing Projects at Original Current Unfunded Tax Credits Amortization of Investments (2) Net Income 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 Green Enterprise Enterprise Total Net Income Tax Anticipated net income tax benefit less amortization of investments: 2016 $ 43 $ 42 $ 30 $ 115 2017 43 40 33 116 2018 and thereafter 199 266 290 755 Total – anticipated net income tax benefit in Qualified Affordable Housing Projects $ 285 $ 348 $ 353 $ 986 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Schedule of Maturity of Time Deposits | The following table shows the maturity of the Company’s time deposits of $100 thousand or more at December 31, 2015. Maturity of Time Deposits of $100,000 or More* (Dollars in thousands) Three months or less $ 8,005 Over three through six months 17,513 Over six through twelve months 28,714 Over twelve months 286 Total $ 54,518 * includes CDARS ® ® |
Borrowings and Subordinated D48
Borrowings and Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Date Issued Amount Interest Rate Original Maturity Date December 31, 2015 $ 14,360 0.08% – 0.25% 4 days January 4, 2016 Total $ 14,360 0.19% December 31, 2014 Date Issued Amount Interest Rate Original Maturity Date December 31, 2014 $ 9,411 0.13% – 0.25% 2 days January 2, 2015 Total $ 9,411 0.20% |
Terms of Issuance Subordinated Debentures Outstanding | The following table summarizes the terms of each issuance of subordinated debentures outstanding as of December 31, 2015: Series Amount (in thousands) Issuance Maturity Rate Index Current Next Reset Trust I $ 6,186 12/10/04 03/15/35 3 month LIBOR+2.05 % 2.56 % 03/15/16 Trust II 3,093 12/23/05 03/15/36 3 month LIBOR+1.75 % 2.26 % 03/15/16 Trust III 3,093 06/30/06 09/15/36 3 month LIBOR+1.85 % 2.36 % 03/15/16 Subtotal 12,372 Unamortized fair value adjustment 2,675 Net $ 9,697 |
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, 2015 2014 Balance Average Weighted Balance Average Weighted Securities sold under agreements to repurchase $ 14,360 $ 13,966 0.22 % $ 9,411 $ 13,579 0.25 % |
Derivative Financial Instrume49
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Derivatives not designated as hedging instruments: Interest rate swap contracts – loans Increase in fair value of interest rate swap contracts $ 206 $ 219 $ 306 Payments on interest rate swap contracts on loans (263 ) (273 ) (289 ) Net increase (decrease) in other non-interest income (57 ) (54 ) 17 Interest rate swap contracts – subordinated debenture Increase in fair value of interest rate swap contracts — — 70 Payments on interest rate swap contracts on subordinated debentures — — (70 ) Net increase in other non-interest income — — — Net increase (decrease) in other non-interest income $ (57 ) $ (54 ) $ 17 Derivatives designated as hedging instruments: Interest rate swap contracts – loans Increase in fair value of interest rate swap contracts $ 926 $ 927 1,719 Increase (decrease) in fair value of hedged loans 133 315 (554 ) Payments on interest rate swap contracts on loans (1,089 ) (1,256 ) (1,294 ) Net decrease in interest income on loans (30 ) (14 ) (129 ) |
1st Enterprise Bank | |
Balance Sheet Classification of Derivative Financial Instruments | The following tables present the fair values of the asset and liability of the Company’s derivative instruments acquired from 1 st Enterprise as of the dates and periods indicated (dollars in thousands): Asset Derivatives December 31, 2015 December 31, 2014 Interest rate swap contracts fair value $ 881 $ 719 Balance sheet location Accrued Interest Accrued Interest Liability Derivatives December 31, 2015 December 31, 2014 Interest rate swap contracts fair value $ 881 $ 719 Balance sheet location Accrued Interest Accrued Interest |
PC Bancorp | |
Balance Sheet Classification of Derivative Financial Instruments | The following table presents the notional amount and the fair values of the asset and liability of the Company’s derivative instruments acquired from PC Bancorp as of the dates indicated (dollars in thousands): Liability Derivatives December 31, 2015 December 31, 2014 Fair Value Hedges Total interest rate contracts notional amount $ 25,938 $ 29,289 Derivatives not designated as hedging instruments: Interest rate swap contracts fair value $ 313 $ 519 Derivatives designated as hedging instruments: Interest rate swap contracts fair value 1,351 2,277 Total interest rate contracts fair value $ 1,664 $ 2,796 Balance sheet location Accrued Interest Payable Accrued Interest Payable |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Securities Sold under Repurchase Agreements and Derivatives Securities Offset in 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 in the Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Collateral December 31, 2015 Financial Assets: Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) $ 881 $ — $ 881 $ 881 $ — $ — Total $ 881 $ — $ 881 $ 881 $ — $ — Financial Liabilities: Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) $ 2,545 $ — $ 2,545 $ 2,545 $ 4,759 $ 2,214 Securities sold under agreements to repurchase 14,360 — 14,360 14,360 46,596 32,236 Total $ 16,905 $ — $ 16,905 $ 16,905 $ 51,355 $ 34,450 December 31, 2014 Financial Assets: Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) $ 719 $ — $ 719 $ 719 $ — $ — Total $ 719 $ — $ 719 $ 719 $ — $ — Financial Liabilities: Interest rate swap contracts fair value (see Note 14 – Derivative Financial Instruments) $ 3,515 $ — $ 3,515 $ 3,515 $ 4,150 $ 635 Securities sold under agreements to repurchase 9,411 — 9,411 9,411 32,304 22,893 Total $ 12,926 $ — $ 12,926 $ 12,926 $ 36,454 $ 23,528 |
Stock Options and Restricted 51
Stock Options and Restricted Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Future Compensation Expense Related to Unvested Restricted Stock Grants | At December 31, 2015, future compensation expense related to unvested restricted stock grants aggregated to the amounts reflected in the table below (dollars in thousands): Future Stock Based Compensation Expense Restricted Stock 2016 $ 2,149 2017 789 2018 284 2019 35 Thereafter — Total $ 3,257 |
Stock Option Activity | The following table summarizes the stock option activity under the plans for the year ended December 31, 2015: Shares Weighted Weighted (in years) Aggregate (in thousands) Outstanding stock options at December 31, 2014 1,016,490 $ 10.13 1.6 $ 15,479 Granted — Exercised (454,019 ) Forfeited (5,000 ) Expired — Outstanding stock options at December 31, 2015 557,471 $ 10.57 0.8 $ 8,248 Exercisable options at December 31, 2015 557,471 $ 10.57 0.8 $ 8,248 Unvested options at December 31, 2015 — |
Restricted Stock Activity | The following table summarizes the restricted stock activity under the Equity Plan for the year ended December 31, 2015: Number Weighted-Average Restricted Stock: Unvested, at December 31, 2014 309,506 $ 16.41 Granted 132,500 21.51 Vested (119,873 ) 14.52 Cancelled and forfeited (10,675 ) 16.92 Unvested, at December 31, 2015 311,458 $ 19.29 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income tax expense consists of the following (dollars in thousands): Year Ended December 31, 2015 2014 2013 Current provision Federal $ 9,265 $ 4,517 $ 1,669 State 2,923 1,183 238 Total current provision 12,188 5,700 1,907 Deferred provision Federal 291 382 2,674 State 389 350 427 Total deferred provision 680 732 3,101 Total current and deferred provision $ 12,868 $ 6,432 $ 5,008 |
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, 2015 2014 Deferred Tax Assets Federal tax loss carryforward $ 64 $ 99 State tax loss carryforward 170 162 Allowance for loan loss 7,473 5,823 Purchase accounting and loan fair value adjustments 7,024 9,430 Accruals and other liabilities 958 1,457 Stock compensation and deferred compensation costs 5,732 6,703 Net unrealized loss on securities available-for-sale 593 — Start up, organizational and other costs 332 612 Total deferred tax assets 22,346 24,286 Deferred Tax Liabilities Net unrealized gain on securities available-for-sale — (138 ) State taxes (441 ) (1,041 ) Unamortized fair value on subordinated debentures (1,230 ) (1,310 ) Core deposit intangibles (2,984 ) (3,754 ) Prepaid expense and other (652 ) (1,524 ) Total deferred tax liabilities (5,307 ) (7,767 ) Valuation allowance (6 ) (15 ) Deferred tax assets, net $ 17,033 $ 16,504 |
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, 2015 2014 2013 Amount Percent Amount Percent Amount Percent Federal income tax expense at statutory rate $ 11,937 35.00 % $ 5,369 35.00 % $ 5,178 35.00 % State franchise taxes, net of federal benefit, excluding LIHTC investments 2,236 6.55 1,209 7.88 524 3.54 Effect of rate change on net deferred tax asset — — — — (326 ) (2.20 ) Release of state valuation allowance on use of net operating loss (29 ) (0.09 ) (68 ) (0.44 ) (68 ) (0.46 ) Meals and entertainment, dues and other non-deductible items 132 0.39 75 0.49 54 0.37 Cash surrender life insurance (453 ) (1.33 ) (231 ) (1.51 ) (210 ) (1.42 ) Stock compensation expense (100 ) (0.29 ) (53 ) (0.35 ) (126 ) (0.85 ) LIHTC investments (141 ) (0.41 ) (119 ) (0.77 ) (155 ) (1.05 ) Merger costs — — 515 3.36 5 0.03 Tax Exempt Income (314 ) (0.92 ) — — — — Other (400 ) (1.17 ) (265 ) (1.73 ) 132 0.89 $ 12,868 37.73 % $ 6,432 41.93 % $ 5,008 33.85 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [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 Year ended December 31, 2015 Net unrealized gains (losses) on investment securities: Beginning balance $ 333 $ (143 ) $ 190 Net unrealized gain (losses) arising during the period (1,742 ) 736 (1,006 ) Ending balance $ (1,409 ) $ 593 $ (816 ) Before Tax Net of Year ended December 31, 2014 Net unrealized gains (losses) on investment securities: Beginning balance $ (348 ) $ 143 $ (205 ) Net unrealized gain (losses) arising during the period 681 (286 ) 395 Ending balance $ 333 $ (143 ) $ 190 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following tables present the Total risk-based capital ratio, Tier 1 risk-based capital ratio, Common equity tier 1 ratio and the Tier 1 leverage ratio of the consolidated Company in addition to the Bank as of December 31, 2015, and December 31, 2014, 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 December 31, December 31, Adequately Well Capitalized Amount Amount (greater than or equal to) Regulatory Capital Ratios: Tier 1 leverage ratio 9.67 % 12.92 % 4.0 % 5.00 % Common Equity Tier 1 ratio 9.61 % — 4.5 % 6.5 % Total Tier 1 risk-based capital ratio 10.85 % 10.95 % 6.0 % 8.0 % Total risk-based capital ratio 11.54 % 11.61 % 8.0 % 10.0 % Regulatory Capital Data: Common Equity Tier 1 $ 223,977 — Total Tier 1 capital 252,681 $ 218,147 Total risk-based capital 268,971 231,228 Average total assets* 2,611,774 1,689,096 Risk-weighted assets 2,329,770 1,992,043 * Represents the average total assets for the leverage ratio California United Bank: December 31, December 31, Adequately Well Capitalized Amount Amount (greater than or equal to) Regulatory Capital Ratios: Tier 1 leverage ratio 9.34 % 12.44 % 4.0 % 5.0 % Common Equity Tier 1 ratio 10.47 % — 4.5 % 6.5 % Total Tier 1 risk-based capital ratio 10.47 % 10.55 % 6.0 % 8.0 % Total risk-based capital ratio 11.17 % 11.20 % 8.0 % 10.0 % Regulatory Capital Data: Common Equity Tier 1 $ 243,989 — Tier 1 capital 243,989 $ 210,031 Total risk-based capital 260,279 223,112 Average total assets* 2,612,206 1,688,308 Risk-weighted assets 2,329,798 1,991,253 * Represents the average total assets for the leverage ratio |
Fair Value Information (Tables)
Fair Value Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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): Fair Value Quoted Prices Significant Significant Financial Assets – December 31, 2015 Investment securities available-for-sale $ 315,785 $ — $ 315,785 $ — Interest Rate Swap Contracts 881 — 881 — Financial Liabilities – December 31, 2015 Interest Rate Swap Contracts $ 2,545 $ — $ 2,545 $ — Financial Assets – December 31, 2014 Investment securities available-for-sale $ 226,962 $ — $ 226,962 $ — Interest Rate Swap Contracts 719 — 719 — Financial Liabilities – December 31, 2014 Interest Rate Swap Contracts $ 3,515 $ — $ 3,515 $ — |
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): Net Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Financial Assets – December 31, 2015 Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) $ — $ — $ — $ — Other real estate owned 325 — — 325 Total $ 325 $ — $ — $ 325 Financial Assets – December 31, 2014 Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs offs (non-purchased credit impaired loans) $ 1,172 $ — $ — $ 1,172 Other real estate owned 850 — — 850 Total $ 2,022 $ — $ — $ 2,022 |
Significant Unobservable Inputs Used in Fair Value Measurements for Level 3 Assets and Liabilities Measured at Fair Value on Recurring or Non-Recurring Basis | 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 Valuation Methodology Valuation Model and/or Factors Unobservable Financial Assets – December 31, 2015 Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off $— — — — Other real estate owned 325 Broker opinion of Sales approach Estimated selling 6% Total $ 325 Financial Assets – December 31, 2014 Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off $ 1,172 Credit loss Credit loss factors 10%-80% Estimated selling 15% Other real estate owned 850 Residential real Sales approach Estimated selling 6% Total $ 2,022 |
Level in Fair Value Hierarchy for Financial Instruments Estimated Fair Values | The table below presents the carrying amounts and fair values of financial instruments based on their fair value hierarchy indicated (dollars in thousands): Fair Value Measurements Carrying Fair Value Quoted Prices in Active for Assets Significant Significant December 31, 2015 Financial Assets Investment securities available-for-sale $ 315,785 315,785 $ — $ 315,785 $ — Investment securities held-to-maturity 42,036 42,339 — 42,339 — Loans, net 1,817,481 1,851,220 — — 1,851,220 Interest rate swap contracts 881 881 — 881 — Financial Liabilities — Certificates of deposit 58,502 58,502 — 58,502 — Securities sold under agreements to repurchase 14,360 14,360 — 14,360 — Subordinated debentures 9,697 12,372 — 12,372 — Interest rate swap contracts 2,545 2,545 — 2,545 — Fair Value Measurements Carrying Fair Value Quoted Prices in Active for Assets Significant Significant December 31, 2014 Financial Assets Investment securities available-for-sale $ 226,962 226,962 $ — $ 226,962 $ — Investment securities held-to-maturity 47,147 47,159 — 47,159 — Loans, net 1,612,113 1,627,717 — — 1,627,717 Interest rate swap contracts 719 719 — 719 — Financial Liabilities Certificates of deposit 64,840 64,857 — 64,857 — Securities sold under agreements to repurchase 9,411 9,411 — 9,411 — Subordinated debentures 9,538 12,372 — 12,372 — Interest rate swap contracts 3,515 3,515 — 3,515 — |
Summary Quarterly Data (Tables)
Summary Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary Quarterly Financial Data | 2015 Quarters Ended 2014 Quarters Ended (Dollars in thousands, except per share data) Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Interest income $ 23,807 $ 23,106 $ 21,941 $ 21,288 $ 16,264 $ 13,238 $ 13,039 $ 12,636 Interest expense 705 704 668 646 528 470 461 463 Net interest income 23,102 22,402 21,273 20,642 15,736 12,768 12,578 12,173 Provision for loan losses 2,249 705 683 1,443 1,721 35 408 75 Net interest income after provision for loan losses 20,853 21,697 20,590 19,199 14,015 12,733 12,170 12,098 Non-interest income 3,039 2,988 3,095 2,608 2,132 2,004 1,783 1,790 Non-interest expense 15,073 15,067 14,912 14,913 14,107 10,031 9,698 9,549 Net income before provision for income tax expense 8,819 9,618 8,773 6,894 2,040 4,706 4,255 4,339 Provision for income tax 3,312 3,355 3,506 2,695 733 2,157 1,869 1,673 Net Income $ 5,507 $ 6,263 $ 5,267 $ 4,199 $ 1,307 $ 2,549 $ 2,386 $ 2,666 Preferred stock dividends and discount accretion $ 297 $ 293 $ 312 $ 272 $ 124 $ — $ — $ — Net Income Available to Common Shareholders $ 5,210 $ 5,970 $ 4,955 $ 3,927 $ 1,183 $ 2,549 $ 2,386 $ 2,666 Basic income per share $ 0.31 $ 0.36 $ 0.30 $ 0.24 $ 0.09 $ 0.23 $ 0.22 $ 0.25 Diluted income per share $ 0.30 $ 0.35 $ 0.29 $ 0.23 $ 0.09 $ 0.23 $ 0.21 $ 0.24 |
Condensed Financial Informati57
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 income and condensed statements of cash flows for the dates and periods indicated (dollars in thousands): Parent Company Only Condensed Balance Sheets December 31, 2015 2014 ASSETS Cash and due from banks $ 6,756 $ 4,612 Loans 882 1,410 Investment in subsidiary 310,263 284,216 Accrued interest receivable and other assets 4 103 Total Assets $ 317,905 $ 290,341 LIABILITIES Subordinated debentures $ 9,697 $ 9,538 Accrued interest payable and other liabilities 1,401 1,611 Total Liabilities 11,098 11,149 SHAREHOLDERS’ EQUITY 306,807 279,192 Total Liabilities and Shareholders’ Equity $ 317,905 $ 290,341 |
Parent Company Condensed Cash Flow Statement | Parent Company Only Condensed Statements of Cash Flows Years Ended 2015 2014 Cash flows from operating activities: Net income: $ 21,236 $ 8,908 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiary (21,813 ) (9,827 ) Provision for loan losses — (100 ) Net accretion of discounts/premiums (19 ) (26 ) Accretion of subordinated debenture discount 159 159 Decrease (increase) in accrued interest receivable and other assets (27 ) 1,351 Increase (decrease) in accrued interest payable and other liabilities (84 ) 396 Net cash (used in) provided by operating activities (548 ) 861 Cash flows from investing activities: Cash paid for 1 st Enterprise fractional shares and dissenting shareholder — (89 ) Capital contribution made to subsidiary (1,000 ) (2,500 ) Net decrease in loans 547 502 Net cash used in investing activities (453 ) (2,087 ) Cash flows from financing activities: Net proceeds from exercise of stock options 4,299 2,029 Issuance costs of common stock for 1 st Enterprise merger — (27 ) Restricted stock repurchase (971 ) (471 ) Dividends paid on preferred stock (183 ) (41 ) Net cash provided by financing activities 3,145 1,490 Net increase in cash 2,144 264 Cash, beginning of year 4,612 4,348 Cash, end of year $ 6,756 $ 4,612 Supplemental disclosures of cash flow information: Cash paid during the period for interest $ 277 $ 270 |
Parent Company Condensed Income Statement | Parent Company Only Condensed Statements of Income Years Ended 2015 2014 Interest Income $ 71 $ 165 Interest Expense 438 430 Operating Expenses 676 911 Total Expenses 1,114 1,341 Loss Before Income Tax Benefit and Equity in Undistributed Earnings of Subsidiary (1,043 ) (1,176 ) Income tax benefit 466 257 Loss Before Equity in Undistributed Earnings of Subsidiary (577 ) (919 ) Equity in undistributed earnings of subsidiary 21,813 9,827 Net Income $ 21,236 $ 8,908 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Additional Information (Detail) | Feb. 25, 2016 | Dec. 31, 2015USD ($)Office | Dec. 31, 2015USD ($)Office | Dec. 31, 2014USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||
Full service branch offices | Office | 9 | 9 | ||
Federal Reserve Bank Balance | $ 14,000,000 | $ 14,000,000 | $ 12,000,000 | |
Deposits not covered by FDIC insurance | 47,000,000 | 47,000,000 | ||
Interest bearing deposit | 171,103,000 | 171,103,000 | 98,590,000 | |
Certificates of Deposits | 56,860,000 | 56,860,000 | 76,433,000 | |
Loans held for sale | 0 | 0 | 0 | |
Goodwill, impairment | $ 0 | $ 0 | 0 | |
Core Deposits | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Weighted average remaining life of intangible assets | 7 years 10 months 24 days | |||
Certificates of Deposit | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Certificates of deposit, weighted average maturity period | 6 years 10 months 24 days | |||
Certificates of deposit, weighted average yield | 0.81% | 0.81% | ||
Other Financial Institutions [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Interest bearing deposit | $ 60,000,000 | $ 60,000,000 | ||
Certificates of Deposits | 2,500,000 | 2,500,000 | ||
Interest rate swap contracts fair value | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amount pledged as collateral | 2,700,000 | $ 2,700,000 | $ 4,100,000 | |
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Certificates of deposit original maturity period | 30 days | |||
Certificates of deposit remaining maturity period | 4 days | |||
Minimum | Furniture and Fixtures | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Certificates of deposit original maturity period | 12 months | |||
Certificates of deposit remaining maturity period | 12 months | |||
Certificates of deposit in other financial institutions | $ 250,000 | $ 250,000 | ||
Short tem lease, Term of contract | 12 months | |||
Maximum | Furniture and Fixtures | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 7 years |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Merger expenses | $ 498 | $ 2,302 | $ 43 | |
1st Enterprise Bank | ||||
Business Acquisition [Line Items] | ||||
Merger date | Jun. 2, 2014 | |||
Effective date of acquisition | Nov. 30, 2014 | |||
Share received in exchange for each share | 1.3450 | |||
Common stock issued | 5,200,000 | |||
Fair value of common stock issued as part of consideration paid | $ 103,000 | |||
Market price of common stock | $ 19.60 | |||
Number of Non-Cumulative Perpetual Preferred Stock, Series D converted to Non-Cumulative Perpetual Preferred Stock, Series A | 16,400 | |||
Merger expenses | $ 498 | 2,300 | ||
Severance and retention expenses related to business combinations | $ 1,200 | $ 423 | ||
Other intangible assets, amortization period | 10 years | |||
Estimated non-recurring merger expenses for legal, accounting, and other professional fees, net of tax | $ 3,200 |
Business Combinations - Fair Va
Business Combinations - Fair Values of Consideration Paid, Assets Acquired and Liabilities Assumed as of Date of Acquisition (Detail) - USD ($) $ in Thousands | Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets acquired: | ||||
Goodwill | $ 64,603 | $ 63,950 | $ 12,292 | |
1st Enterprise Bank | ||||
Assets acquired: | ||||
Cash and due from banks | $ 8,739 | |||
Interest earning deposits in other financial institutions | 11,554 | |||
Investment securities available-for-sale | 117,407 | |||
Investment securities held-to-maturity | 47,457 | |||
Loans | 553,183 | |||
Premises and equipment, net | 1,830 | |||
Deferred tax asset | 5,682 | |||
Goodwill | 51,658 | |||
Core deposit and leasehold right intangibles | 7,533 | |||
Bank owned life insurance | 16,871 | |||
Accrued interest receivable and other assets | 11,583 | |||
Total assets acquired | 833,497 | |||
Liabilities assumed: | ||||
Deposits | 703,358 | |||
Accrued interest payable and other liabilities | 1,856 | |||
Total liabilities assumed | 705,214 | |||
Total consideration paid: | ||||
CU Bancorp issued | 103,000 | |||
Fair value of 1st Enterprise stock options | 9,561 | |||
Cash paid to a dissenter shareholder | 87 | |||
Cash in lieu of fractional shares paid to 1st Enterprise shareholders | 2 | |||
Total consideration | 128,283 | |||
1st Enterprise Bank | Common Stock | ||||
Total consideration paid: | ||||
CU Bancorp issued | 102,712 | |||
1st Enterprise Bank | Preferred Stock | ||||
Total consideration paid: | ||||
CU Bancorp issued | $ 15,921 |
Summary of Fair Value of Consid
Summary of Fair Value of Consideration Transferred, Fair Value Adjustments to Balance Sheet and Resulting Goodwill (Detail) - USD ($) $ in Thousands | Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair value adjustments: | ||||
Excess of consideration paid over fair value of net assets acquired (goodwill) | $ 64,603 | $ 63,950 | $ 12,292 | |
1st Enterprise Bank | ||||
Consideration paid: | ||||
CU Bancorp issued | $ 103,000 | |||
Fair value of 1st Enterprise stock options | 9,561 | |||
Cash paid to a dissenter shareholder | 87 | |||
Cash in lieu of fractional shares paid to 1st Enterprise shareholders | 2 | |||
Total consideration | 128,283 | |||
Net assets of 1st Enterprise at November 30, 2014 | 75,205 | |||
Fair value adjustments: | ||||
Total fair value adjustments | 1,420 | |||
Fair value of net assets acquired | 76,625 | |||
Excess of consideration paid over fair value of net assets acquired (goodwill) | 51,658 | |||
1st Enterprise Bank | Investment Securities [Member] | ||||
Fair value adjustments: | ||||
Total fair value adjustments | 1,779 | |||
1st Enterprise Bank | Loans, Net [Member] | ||||
Fair value adjustments: | ||||
Total fair value adjustments | (12,362) | |||
1st Enterprise Bank | Premises and equipment | ||||
Fair value adjustments: | ||||
Total fair value adjustments | (377) | |||
1st Enterprise Bank | Deferred taxes | ||||
Fair value adjustments: | ||||
Total fair value adjustments | 3,019 | |||
1st Enterprise Bank | Core deposits and leasehold intangibles | ||||
Fair value adjustments: | ||||
Total fair value adjustments | 7,424 | |||
1st Enterprise Bank | Other assets | ||||
Fair value adjustments: | ||||
Total fair value adjustments | (52) | |||
1st Enterprise Bank | Other liabilities | ||||
Fair value adjustments: | ||||
Total fair value adjustments | 1,989 | |||
1st Enterprise Bank | Common Stock | ||||
Consideration paid: | ||||
CU Bancorp issued | 102,712 | |||
1st Enterprise Bank | Preferred Stock | ||||
Consideration paid: | ||||
CU Bancorp issued | $ 15,921 |
Business Combinations - Fair 62
Business Combinations - Fair Value of Loans Pursuant to Accounting Standards for PCI and Non-PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Accretable yield | $ (14,610) | $ (21,402) | $ (7,912) | |
PCI loans | ||||
Business Acquisition [Line Items] | ||||
Accretable yield | $ (246) | $ (324) | $ (395) | |
1st Enterprise Bank | ||||
Business Acquisition [Line Items] | ||||
Contractually required payments | $ 569,853 | |||
Less: non-accretable difference | (108) | |||
Cash flows expected to be collected (undiscounted) | 569,745 | |||
Accretable yield | (16,562) | |||
Fair value of acquired loans | 553,183 | |||
Cash flows expected to be collected (undiscounted) | 569,745 | |||
1st Enterprise Bank | PCI loans | ||||
Business Acquisition [Line Items] | ||||
Contractually required payments | 577 | |||
Less: non-accretable difference | (108) | |||
Cash flows expected to be collected (undiscounted) | 469 | |||
Fair value of acquired loans | 469 | |||
Cash flows expected to be collected (undiscounted) | 469 | |||
1st Enterprise Bank | Non-PCI loans | ||||
Business Acquisition [Line Items] | ||||
Contractually required payments | 569,276 | |||
Cash flows expected to be collected (undiscounted) | 569,276 | |||
Accretable yield | (16,562) | |||
Fair value of acquired loans | 552,714 | |||
Cash flows expected to be collected (undiscounted) | $ 569,276 |
Schedule of Pro Forma Informati
Schedule of Pro Forma Information (Detail) - 1st Enterprise Bank - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net interest income after provision for loan losses | $ 2,023 | $ 77,140 | $ 68,771 |
Net income | $ 766 | 17,218 | 15,299 |
Preferred stock dividends and discount accretion | (1,234) | (889) | |
Net income available to common shareholders | $ 15,984 | $ 14,410 | |
Diluted earnings per share | $ 0.94 | $ 0.87 |
Computation of Book Value and64
Computation of Book Value and Tangible Book Value per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ||||
Total Shareholders' Equity | $ 306,807 | $ 279,192 | $ 137,924 | $ 125,623 |
Less: Preferred stock | 16,995 | 16,004 | ||
Less: Goodwill | 64,603 | 63,950 | $ 12,292 | |
Less: Core deposit and leasehold right intangibles | 7,671 | 9,547 | ||
Tangible Shareholders' Equity | $ 217,538 | $ 189,691 | ||
Common shares issued | 17,175,389 | 16,683,856 | ||
Common shares outstanding | 17,175,389 | 16,683,856 | ||
Book value per common share | $ 16.87 | $ 15.78 | ||
Tangible book value per common share | $ 12.67 | $ 11.37 |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Common Share Computations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 5,507 | $ 6,263 | $ 5,267 | $ 4,199 | $ 1,307 | $ 2,549 | $ 2,386 | $ 2,666 | $ 21,236 | $ 8,908 | $ 9,785 |
Less: Preferred stock dividends and discount accretion | 297 | 293 | 312 | 272 | 124 | 1,174 | 124 | ||||
Net Income available to common shareholders | $ 5,210 | $ 5,970 | $ 4,955 | $ 3,927 | $ 1,183 | $ 2,549 | $ 2,386 | $ 2,666 | $ 20,062 | $ 8,784 | $ 9,785 |
Weighted average basic common shares outstanding | 16,543,787 | 11,393,445 | 10,567,436 | ||||||||
Dilutive effect of potential common share issuances from stock options and restricted stock | 439,434 | 274,288 | 269,425 | ||||||||
Weighted average diluted common shares outstanding | 16,983,221 | 11,667,733 | 10,836,861 | ||||||||
Basic income (loss) per share | $ 0.31 | $ 0.36 | $ 0.30 | $ 0.24 | $ 0.09 | $ 0.23 | $ 0.22 | $ 0.25 | $ 1.21 | $ 0.77 | $ 0.93 |
Diluted income (loss) per share | $ 0.30 | $ 0.35 | $ 0.29 | $ 0.23 | $ 0.09 | $ 0.23 | $ 0.21 | $ 0.24 | $ 1.18 | $ 0.75 | $ 0.90 |
Anti-dilutive shares not included in the calculation of diluted earnings per share | 32,811 | 79,000 | 81,000 |
Amortized Cost, Gross Unrealize
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Values of Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | $ 317,194 | $ 226,634 |
Available-for-sale Securities, Gross Unrealized Gains | 859 | 1,573 |
Available-for-sale Securities, Gross Unrealized Losses | 2,268 | 1,245 |
Fair Value | 315,785 | 226,962 |
Held-to-maturity Securities, Amortized Cost | 42,036 | 47,147 |
Held-to-maturity Securities, Gross Unrealized Gain | 335 | 169 |
Held-to-maturity Securities, Gross Unrealized Losses | 32 | 157 |
Fair Value | 42,339 | 47,159 |
Available-for-sale Securities and Held-to-maturity Securities, Amortized Cost | 359,230 | 273,781 |
Available-for-sale Securities and Held-to-maturity Securities, Gross Unrealized Gain | 1,194 | 1,742 |
Available-for-sale Securities and Held-to-maturity Securities, Gross Unrealized Losses | 2,300 | 1,402 |
Available-for-sale Securities and Held-to-maturity Securities, Fair Value | 358,124 | 274,121 |
Municipal Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 1,010 | 1,039 |
Available-for-sale Securities, Gross Unrealized Gains | 1 | 11 |
Fair Value | 1,011 | 1,050 |
Held-to-maturity Securities, Amortized Cost | 42,036 | 47,147 |
Held-to-maturity Securities, Gross Unrealized Gain | 335 | 169 |
Held-to-maturity Securities, Gross Unrealized Losses | 32 | 157 |
Fair Value | 42,339 | 47,159 |
U.S. Govt Agency - GNMA Mortgage-Backed Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 30,916 | 29,364 |
Available-for-sale Securities, Gross Unrealized Gains | 202 | 255 |
Available-for-sale Securities, Gross Unrealized Losses | 418 | 277 |
Fair Value | 30,700 | 29,342 |
Corporate Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 4,016 | 4,043 |
Available-for-sale Securities, Gross Unrealized Gains | 7 | 77 |
Fair Value | 4,023 | 4,120 |
Asset Backed Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 7,890 | 8,711 |
Available-for-sale Securities, Gross Unrealized Gains | 1 | |
Available-for-sale Securities, Gross Unrealized Losses | 243 | 40 |
Fair Value | 7,647 | 8,672 |
U. S. Treasury Notes | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 80,981 | 20,031 |
Available-for-sale Securities, Gross Unrealized Losses | 235 | 6 |
Fair Value | 80,746 | 20,025 |
U.S. Govt Agency and Sponsored Agency - Note Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 1,014 | 2,036 |
Available-for-sale Securities, Gross Unrealized Gains | 2 | |
Fair Value | 1,014 | 2,038 |
U.S. Govt Agency - SBA Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 93,674 | 54,062 |
Available-for-sale Securities, Gross Unrealized Gains | 399 | 770 |
Available-for-sale Securities, Gross Unrealized Losses | 583 | 345 |
Fair Value | 93,490 | 54,487 |
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 97,693 | 107,348 |
Available-for-sale Securities, Gross Unrealized Gains | 250 | 457 |
Available-for-sale Securities, Gross Unrealized Losses | 789 | 577 |
Fair Value | $ 97,154 | $ 107,228 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities classified as other-than-temporary impaired | $ 0 | $ 0 | |
Gain (loss) on sale of securities, net | 112,000 | (47,000) | $ 47,000 |
Net proceeds from sale of securities | 5,737,000 | 25,156,000 | 6,968,000 |
Company's investment in the common stock of the FHLB | 8,000,000 | 8,000,000 | |
Other-than-temporary impairment losses | 0 | ||
PC Bancorp | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Acquired common stock of FHLB | 3,800,000 | ||
Federal Home Loan Bank of San Francisco | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cash dividends received | 1,100,000 | 320,000 | $ 199,000 |
Securities sold under agreements to repurchase | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Market value of securities pledged to secure securities sold under agreements to repurchase | $ 197,000,000 | $ 149,000,000 |
Gross Unrealized Losses and Fai
Gross Unrealized Losses and Fair Values of AFS and HTM Investment Securities that were in Unrealized Loss Positions (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value | $ 210,417 | $ 112,706 |
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss | 1,328 | 611 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value | 36,974 | 25,463 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss | 940 | 634 |
Temporarily-impaired available-for-sale investment securities, Total, Fair Value | 247,391 | 138,169 |
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss | 2,268 | 1,245 |
Temporarily-impaired held-to-maturity investment securities, Less than 12 months, Fair Value | 5,669 | 23,966 |
Temporarily-impaired held-to-maturity investment securities, Less than 12 months, Gross Unrealized Loss | 16 | 157 |
Temporarily-impaired held-to-maturity investment securities, More than 12 months, Fair Value | 2,392 | |
Temporarily-impaired held-to-maturity investment securities, More than 12 months, Gross Unrealized Loss | 16 | |
Temporarily-impaired held-to-maturity investment securities, Fair Value | 8,061 | 23,966 |
Temporarily-impaired held-to-maturity investment securities, Gross Unrealized Loss | 32 | 157 |
U.S. Govt Agency - GNMA Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value | 5,417 | 12,784 |
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss | 47 | 65 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value | 14,296 | 8,784 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss | 371 | 212 |
Temporarily-impaired available-for-sale investment securities, Total, Fair Value | 19,713 | 21,568 |
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss | 418 | 277 |
Asset Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value | 2,928 | 4,849 |
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss | 54 | 40 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value | 4,719 | |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss | 190 | |
Temporarily-impaired available-for-sale investment securities, Total, Fair Value | 7,647 | 4,849 |
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss | 244 | 40 |
U. S. Treasury Notes | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value | 80,745 | 20,025 |
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss | 235 | 6 |
Temporarily-impaired available-for-sale investment securities, Total, Fair Value | 80,745 | 20,025 |
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss | 235 | 6 |
Municipal Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Temporarily-impaired held-to-maturity investment securities, Less than 12 months, Fair Value | 5,669 | 23,966 |
Temporarily-impaired held-to-maturity investment securities, Less than 12 months, Gross Unrealized Loss | 16 | 157 |
Temporarily-impaired held-to-maturity investment securities, More than 12 months, Fair Value | 2,392 | |
Temporarily-impaired held-to-maturity investment securities, More than 12 months, Gross Unrealized Loss | 16 | |
Temporarily-impaired held-to-maturity investment securities, Fair Value | 8,061 | 23,966 |
Temporarily-impaired held-to-maturity investment securities, Gross Unrealized Loss | 32 | 157 |
U.S. Govt Agency - SBA Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value | 53,852 | 10,688 |
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss | 428 | 87 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value | 7,935 | 10,095 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss | 154 | 258 |
Temporarily-impaired available-for-sale investment securities, Total, Fair Value | 61,787 | 20,783 |
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss | 582 | 345 |
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value | 67,475 | 64,360 |
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss | 564 | 413 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value | 10,024 | 6,584 |
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss | 225 | 164 |
Temporarily-impaired available-for-sale investment securities, Total, Fair Value | 77,499 | 70,944 |
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss | $ 789 | $ 577 |
Maturities Schedule of Securiti
Maturities Schedule of Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-sale, Amortized Cost | ||
Due through one year | $ 66,330 | |
Due after one year through five years | 147,915 | |
Due after five years through ten years | 82,063 | |
Due after ten years | 20,886 | |
Available-for-sale Securities, Amortized Cost | 317,194 | $ 226,634 |
Held-to-maturity, Amortized Cost | ||
Due through one year | 2,237 | |
Due after one year through five years | 34,307 | |
Due after five years through ten years | 5,492 | |
Held-to-maturity Securities, Amortized Cost | 42,036 | 47,147 |
Available-for-sale Securities and Held-to-maturity Securities, Amortized Cost | 359,230 | 273,781 |
Available-for-sale, Fair Value | ||
Due through one year | 66,185 | |
Due after one year through five years | 147,115 | |
Due after five years through ten years | 81,624 | |
Due after ten years | 20,861 | |
Total available-for-sale | 315,785 | 226,962 |
Held-to-maturity, Fair Value | ||
Due through one year | 2,243 | |
Due after one year through five years | 34,506 | |
Due after five years through ten years | 5,590 | |
Total held-to-maturity | 42,339 | 47,159 |
Total investment securities | $ 358,124 | $ 274,121 |
Available-for-sale, Weighted Average Yield | ||
Due through one year | 1.07% | |
Due after one year through five years | 1.27% | |
Due after five years through ten years | 1.88% | |
Due after ten years | 2.84% | |
Total available-for-sale | 1.49% | |
Held-to-maturity, Weighted Average Yield | ||
Due through one year | 1.77% | |
Due after one year through five years | 1.58% | |
Due after five years through ten years | 1.96% | |
Total held-to-maturity | 1.64% | |
Total investment securities | 1.50% |
Composition of Interest Income
Composition of Interest Income on Investment Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income, Securities, Operating, by Taxable Status [Abstract] | |||
Taxable interest | $ 3,773 | $ 2,331 | $ 1,913 |
Non-taxable interest | 745 | 38 | |
Total interest income on investment securities | $ 4,518 | $ 2,369 | $ 1,913 |
Composition of Loan Portfolio (
Composition of Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial and Industrial Loans: | $ 537,368 | $ 528,517 |
Loans Secured by Real Estate: | ||
Loans Secured by Real Estate | 1,252,683 | 1,067,847 |
Other Loans: | 43,112 | 28,359 |
Total Loans | 1,833,163 | 1,624,723 |
Owner-Occupied Nonresidential Properties | ||
Loans Secured by Real Estate: | ||
Loans Secured by Real Estate | 407,979 | 339,309 |
Other Nonresidential Properties | ||
Loans Secured by Real Estate: | ||
Loans Secured by Real Estate | 533,168 | 481,517 |
Construction, Land Development and Other Land | ||
Loans Secured by Real Estate: | ||
Loans Secured by Real Estate | 125,832 | 72,223 |
Total Loans | 125,832 | 72,223 |
1-4 Family Residential Properties | ||
Loans Secured by Real Estate: | ||
Loans Secured by Real Estate | 114,525 | 121,985 |
Multifamily Residential Properties | ||
Loans Secured by Real Estate: | ||
Loans Secured by Real Estate | $ 71,179 | $ 52,813 |
Loans - Additional Information
Loans - Additional Information (Detail) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($)Loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net deferred fees and net discount included in total loans | $ 22,000,000 | $ 22,000,000 | $ 26,000,000 | |
Loan to value ratio | 75.00% | 75.00% | ||
Loans held for sale | $ 0 | $ 0 | 0 | |
Credit Impaired Loans | 2,051,000 | 2,051,000 | 3,909,000 | |
Credit impaired notes | 1,831,112,000 | 1,831,112,000 | 1,620,035,000 | |
Credit purchase impaired loan | 2,000,000 | 2,400,000 | ||
Recorded Investment | 1,207,000 | 1,207,000 | 2,651,000 | |
Unpaid Principal Balance | 1,719,000 | $ 1,719,000 | $ 2,894,000 | |
Number of Loans | Loan | 3 | 2 | 1 | |
Commitment to lend borrowers | 0 | $ 0 | $ 0 | |
Payment defaults subsequent to modification on troubled debt restructured loans | 0 | |||
Troubled Debt Restructuring | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Recorded Investment | 627,000 | 627,000 | 644,000 | $ 2,714,000 |
Unpaid Principal Balance | 1,363,000 | 1,363,000 | 834,000 | $ 3,628,000 |
PCI loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit Impaired Loans | 844,000 | 844,000 | 1,300,000 | |
Credit impaired notes | 1,200,000 | 1,200,000 | 1,100,000 | |
Recorded Investment | 2,012,000 | 2,012,000 | 2,385,000 | |
Unpaid Principal Balance | 4,642,000 | 4,642,000 | 4,285,000 | |
Allowance for credit losses | 0 | 0 | $ 0 | |
PCI loans | Troubled Debt Restructuring | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Recorded Investment | 263,000 | 263,000 | ||
Unpaid Principal Balance | 969,000 | $ 969,000 | ||
Number of Loans | Loan | 3 | |||
SBA Servicing Asset | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, net | 1,500,000 | $ 1,500,000 | ||
Loan balances sold | 77,000,000 | 77,000,000 | ||
SBA Servicing Asset | PC Bancorp | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, net | 110,000,000 | 110,000,000 | ||
SBA 7a Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, net | 2,000,000 | 2,000,000 | ||
Debt Instrument Remaining Loans | SBA Servicing Asset | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, net | 33,000,000 | 33,000,000 | ||
Debt Instrument Un-guaranteed Loans | SBA Servicing Asset | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, net | 25,000,000 | 25,000,000 | ||
Debt Instrument Guaranteed Loans | SBA Servicing Asset | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, net | $ 8,000,000 | $ 8,000,000 | ||
Secured Commercial Loan | Real Estate Collateral Dependent Loans | Credit Concentration Risk | Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan concentration percentage | 69.00% | |||
Secured Commercial Loan | First Trust Deed Lien | Credit Concentration Risk | Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan concentration percentage | 96.00% | |||
Secured Commercial Loan | Second Trust Deed Lien | Credit Concentration Risk | Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan concentration percentage | 4.00% | |||
Secured Commercial Loan | Owner-Occupied Nonresidential Properties | Credit Concentration Risk | Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan concentration percentage | 32.00% | |||
Secured Commercial Loan | Ucc filing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan concentration percentage | 24.00% | 24.00% | ||
Unsecured Commercial Loan | Credit Concentration Risk | Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan concentration percentage | 6.00% |
Company's Loan Portfolio Strati
Company's Loan Portfolio Stratified by Industry Concentration of Borrower (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 1,833,163 | $ 1,624,723 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 857,021 | 744,663 |
Manufacturing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 174,773 | 161,233 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 161,618 | 113,763 |
Wholesale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 134,093 | 124,336 |
Hotel/Lodging | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 105,741 | 88,269 |
Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 87,734 | 96,074 |
Professional Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 60,952 | 64,215 |
Healthcare | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 47,293 | 43,917 |
Other Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 45,002 | 45,781 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 38,928 | 35,503 |
Restaurant/Food Service | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 26,226 | 24,525 |
Administrative Management | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 23,736 | 28,016 |
Transportation | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 22,237 | 18,158 |
Information | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 20,171 | 15,457 |
Education | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 9,244 | 10,253 |
Management | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 8,137 | 1,606 |
Entertainment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 6,188 | 8,284 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 4,069 | $ 670 |
Summary of Activity for Allowan
Summary of Activity for Allowance for Loan Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||||||||||
Allowance for loan loss at beginning of year | $ 12,610 | $ 10,603 | $ 12,610 | $ 10,603 | $ 8,803 | ||||||
Provision for loan losses | $ 2,249 | $ 705 | $ 683 | $ 1,443 | $ 1,721 | $ 35 | $ 408 | $ 75 | 5,080 | 2,239 | 2,852 |
Net (charge-offs) recoveries: | |||||||||||
Charge-offs | (2,510) | (692) | (1,912) | ||||||||
Recoveries | 502 | 460 | 860 | ||||||||
Net (charge-offs) | (2,008) | (232) | (1,052) | ||||||||
Allowance for loan loss at end of year | $ 15,682 | $ 12,610 | $ 15,682 | $ 12,610 | $ 10,603 | ||||||
Net (charge-offs) to average loans | (0.12%) | (0.02%) | (0.12%) | ||||||||
Allowance for loan loss to total loans | 0.86% | 0.78% | 0.86% | 0.78% | 1.14% | ||||||
Allowance for loan loss to total loans accounted for at historical cost, which excludes purchased loans acquired by acquisition | 1.25% | 1.39% | 1.50% |
Changes in Allowance for Loan L
Changes in Allowance for Loan Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan loss at beginning of year | $ 12,610 | $ 10,603 | $ 8,803 |
Provision for loan losses | 5,080 | 2,239 | |
Net (charge-offs) recoveries: | |||
Charge-offs | (2,510) | (692) | (1,912) |
Recoveries | 502 | 460 | 860 |
Net (charge-offs) recoveries | (2,008) | (232) | (1,052) |
Allowance for loan loss at end of year | 15,682 | 12,610 | 10,603 |
Commercial and Industrial | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan loss at beginning of year | 5,864 | 5,534 | |
Provision for loan losses | 1,781 | 595 | |
Net (charge-offs) recoveries: | |||
Charge-offs | (2,218) | (619) | |
Recoveries | 497 | 354 | |
Net (charge-offs) recoveries | (1,721) | (265) | |
Allowance for loan loss at end of year | 5,924 | 5,864 | 5,534 |
Construction, Land Development and Other Land | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan loss at beginning of year | 1,684 | 1,120 | |
Provision for loan losses | 392 | 564 | |
Net (charge-offs) recoveries: | |||
Allowance for loan loss at end of year | 2,076 | 1,684 | 1,120 |
Commercial and Other Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan loss at beginning of year | 4,802 | 3,886 | |
Provision for loan losses | 2,306 | 883 | |
Net (charge-offs) recoveries: | |||
Charge-offs | (292) | (73) | |
Recoveries | 5 | 106 | |
Net (charge-offs) recoveries | (287) | 33 | |
Allowance for loan loss at end of year | 6,821 | 4,802 | 3,886 |
Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan loss at beginning of year | 260 | 63 | |
Provision for loan losses | 601 | 197 | |
Net (charge-offs) recoveries: | |||
Allowance for loan loss at end of year | $ 861 | $ 260 | $ 63 |
Schedule Represents both Allowa
Schedule Represents both Allowance for Loan Loss and Associated Loan Balance Classified by Loan Portfolio Segment and by Credit Evaluation Methodology (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 222 | |||
Collectively evaluated for impairment | $ 15,682 | 12,388 | ||
Total Allowance for Loan Loss | 15,682 | 12,610 | $ 10,603 | $ 8,803 |
Loans receivable: | ||||
Individually evaluated for impairment | 1,207 | 2,651 | ||
Collectively evaluated for impairment | 1,829,944 | 1,619,687 | ||
Total Loans | 1,833,163 | 1,624,723 | ||
Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 0 | ||
Loans receivable: | ||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 2,012 | 2,385 | ||
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 222 | |||
Collectively evaluated for impairment | 5,924 | 5,642 | ||
Total Allowance for Loan Loss | 5,924 | 5,864 | 5,534 | |
Loans receivable: | ||||
Individually evaluated for impairment | 558 | 1,914 | ||
Collectively evaluated for impairment | 536,333 | 525,910 | ||
Total Loans | 537,368 | 528,517 | ||
Commercial and Industrial | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 0 | ||
Loans receivable: | ||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 477 | 693 | ||
Construction, Land Development and Other Land | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 2,076 | 1,684 | ||
Total Allowance for Loan Loss | 2,076 | 1,684 | 1,120 | |
Loans receivable: | ||||
Collectively evaluated for impairment | 125,832 | 72,223 | ||
Total Loans | 125,832 | 72,223 | ||
Construction, Land Development and Other Land | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 0 | ||
Commercial and Other Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 6,821 | 4,802 | ||
Total Allowance for Loan Loss | 6,821 | 4,802 | ||
Loans receivable: | ||||
Individually evaluated for impairment | 649 | 737 | ||
Collectively evaluated for impairment | 1,124,667 | 993,195 | ||
Total Loans | 1,126,851 | 995,624 | ||
Commercial and Other Real Estate | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 0 | 0 | ||
Loans receivable: | ||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | 1,535 | 1,692 | ||
Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 861 | 260 | ||
Total Allowance for Loan Loss | 861 | 260 | $ 63 | |
Loans receivable: | ||||
Collectively evaluated for impairment | 43,112 | 28,359 | ||
Total Loans | 43,112 | 28,359 | ||
Other | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Purchased credit impaired (loans acquired with deteriorated credit quality) | $ 0 | $ 0 |
Risk Category of Loans by Class
Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial and Industrial | $ 537,368 | $ 528,517 |
Construction, Land Development and Other Land | 125,832 | 72,223 |
Commercial and Other Real Estate | 1,126,851 | 995,624 |
Other | 43,112 | 28,359 |
Total Loans | 1,833,163 | 1,624,723 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial and Industrial | 503,006 | 502,624 |
Construction, Land Development and Other Land | 125,832 | 72,223 |
Commercial and Other Real Estate | 1,101,548 | 977,525 |
Other | 40,132 | 28,358 |
Total Loans | 1,770,518 | 1,580,730 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial and Industrial | 16,041 | 8,738 |
Commercial and Other Real Estate | 6,494 | 4,878 |
Other | 43 | |
Total Loans | 22,578 | 13,616 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial and Industrial | 18,321 | 17,155 |
Commercial and Other Real Estate | 18,809 | 13,221 |
Other | 2,937 | 1 |
Total Loans | $ 40,067 | $ 30,377 |
Age Analysis of Recorded Invest
Age Analysis of Recorded Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | $ 779 | |
Total Non-Accrual | $ 2,051 | 3,909 |
Current | 1,831,112 | 1,620,035 |
Total Loans | 1,833,163 | 1,624,723 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | 425 | |
Total Non-Accrual | 1,032 | 2,604 |
Current | 536,336 | 525,488 |
Total Loans | 537,368 | 528,517 |
Construction, Land Development and Other Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 125,832 | 72,223 |
Total Loans | 125,832 | 72,223 |
Commercial and Other Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | 354 | |
Total Non-Accrual | 1,019 | 1,305 |
Current | 1,125,832 | 993,965 |
Total Loans | 1,126,851 | 995,624 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 43,112 | 28,359 |
Total Loans | $ 43,112 | 28,359 |
Loans 31 to 60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | 546 | |
Loans 31 to 60 Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | 192 | |
Loans 31 to 60 Days Past Due | Commercial and Other Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | 354 | |
Loans 61 to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | 233 | |
Loans 61 to 90 Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | 233 | |
Loans 90 Days Or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Accruing | $ 0 |
Recorded Investment and Unpaid
Recorded Investment and Unpaid Principal Balances for Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | |||
Related Allowance, With a specific allowance recorded | $ 222 | ||
Recorded Investment | $ 1,207 | 2,651 | |
Unpaid Principal Balance | 1,719 | 2,894 | |
Related Allowance, With a specific allowance recorded | 222 | ||
Average Recorded Investment | 742 | 4,991 | $ 7,067 |
Interest Income Recognized | 0 | 0 | |
Commercial and Industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With a specific allowance recorded | 1,394 | ||
Recorded Investment, With no specific allowance recorded | 558 | 520 | |
Unpaid Principal Balance, With a specific allowance recorded | 1,546 | ||
Unpaid Principal Balance, With no specific allowance recorded | 1,027 | 609 | |
Related Allowance, With a specific allowance recorded | 222 | ||
Average Recorded Investment, With a specific allowance recorded | 1,507 | ||
Average Recorded Investment, With no specific allowance recorded | 672 | 993 | |
Interest Income Recognized, With a specific allowance recorded | 0 | 0 | |
Interest Income Recognized, With no specific allowance recorded | 0 | 0 | |
Recorded Investment | 558 | 1,914 | |
Unpaid Principal Balance | 1,027 | 2,155 | |
Related Allowance, With a specific allowance recorded | 222 | ||
Average Recorded Investment | 672 | 2,500 | |
Interest Income Recognized | 0 | 0 | |
Commercial and Other Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no specific allowance recorded | 649 | 737 | |
Unpaid Principal Balance, With no specific allowance recorded | 692 | 739 | |
Average Recorded Investment, With no specific allowance recorded | 70 | 2,491 | |
Interest Income Recognized, With a specific allowance recorded | 0 | ||
Interest Income Recognized, With no specific allowance recorded | 0 | 0 | |
Recorded Investment | 649 | 737 | |
Unpaid Principal Balance | 692 | 739 | |
Average Recorded Investment | 70 | 2,491 | |
Interest Income Recognized | $ 0 | $ 0 |
Additional Information on Impai
Additional Information on Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Average recorded investment in impaired loans | $ 742 | $ 4,991 | $ 7,067 |
Interest foregone on impaired loans | 265 | 421 | 710 |
Cash collections applied to reduce principal balance | 1,118 | 3,014 | 5,057 |
Interest income recognized on cash collections | $ 0 | $ 0 | $ 0 |
Recorded Investment and Unpai81
Recorded Investment and Unpaid Principal Balances for Troubled Debt Restructured Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | $ 1,207 | $ 2,651 | |
Unpaid Principal Balance | 1,719 | 2,894 | |
Interest Income Recognized | 0 | 0 | |
Commercial and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 558 | 1,914 | |
Unpaid Principal Balance | 1,027 | 2,155 | |
Interest Income Recognized | 0 | 0 | |
Commercial and Other Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 649 | 737 | |
Unpaid Principal Balance | 692 | 739 | |
Interest Income Recognized | 0 | 0 | |
Troubled Debt Restructuring | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 627 | 644 | $ 2,714 |
Unpaid Principal Balance | 1,363 | 834 | 3,628 |
Interest Income Recognized | 0 | 0 | 0 |
Troubled Debt Restructuring | Commercial and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 627 | 530 | 541 |
Unpaid Principal Balance | 1,363 | 719 | 843 |
Interest Income Recognized | $ 0 | 0 | 0 |
Troubled Debt Restructuring | Commercial and Other Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 114 | 2,173 | |
Unpaid Principal Balance | 115 | 2,785 | |
Interest Income Recognized | $ 0 | $ 0 |
Pre and Post Modification Recor
Pre and Post Modification Recorded Investment in TDR Loans (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 3 | 2 | 1 |
Pre-Modification Recorded Investment | $ 1,335 | $ 338 | $ 310 |
Post-Modification Recorded Investment | $ 208 | $ 338 | $ 310 |
Reduced Interest Rate | Commercial and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 3 | 1 | 1 |
Pre-Modification Recorded Investment | $ 1,335 | $ 224 | $ 310 |
Post-Modification Recorded Investment | $ 208 | $ 224 | $ 310 |
Reduced Interest Rate | Commercial and Other Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 1 | ||
Pre-Modification Recorded Investment | $ 114 | ||
Post-Modification Recorded Investment | $ 114 |
Accretable Yield for Loans Acqu
Accretable Yield for Loans Acquired (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||
Balance, beginning of year | $ 21,402 | $ 7,912 |
Accretion, included in interest income | (6,274) | (3,023) |
Additions, due to acquisition | 16,562 | |
Reclassifications to non-accretable yield | (518) | (49) |
Balance, end of year | $ 14,610 | $ 21,402 |
Carrying Value of Purchased Cre
Carrying Value of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 1,719 | $ 2,894 |
Carrying Value | 1,207 | 2,651 |
PCI loans | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 4,642 | 4,285 |
Carrying Value | 2,012 | 2,385 |
PCI loans | Commercial and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,331 | 1,205 |
Carrying Value | 477 | 693 |
PCI loans | Commercial and Other Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,250 | 3,018 |
Carrying Value | 1,535 | 1,692 |
PCI loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 61 | $ 62 |
Accretable Net Discount of Purc
Accretable Net Discount of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Impaired Loans Change In Accretable Yield [Line Items] | ||
Balance, beginning of year | $ 21,402 | $ 7,912 |
Accretion, included in interest income | (6,274) | (3,023) |
Balance, end of year | 14,610 | 21,402 |
PCI loans | ||
Acquired Impaired Loans Change In Accretable Yield [Line Items] | ||
Balance, beginning of year | 324 | 395 |
Accretion, included in interest income | (78) | (71) |
Reclassifications from non-accretable yield | 0 | 0 |
Balance, end of year | $ 246 | $ 324 |
Summary of Premises and Equipme
Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Net [Abstract] | ||
Furniture and equipment | $ 8,345 | $ 8,489 |
Leasehold improvements | 7,260 | 7,009 |
Total | 15,605 | 15,498 |
Less: Accumulated depreciation and amortization | (10,466) | (10,121) |
Total | $ 5,139 | $ 5,377 |
Premises and Equipment and Le87
Premises and Equipment and Lease Commitments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation | $ 1,424 | $ 1,019 | $ 1,082 |
Rental expense on facilities | $ 3,100 | $ 2,200 | $ 2,200 |
Future Minimum Lease Payments f
Future Minimum Lease Payments for Operating Leases for Office and Branch Space Based Upon Obligations (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 3,387 |
2,017 | 3,320 |
2,018 | 2,491 |
2,019 | 2,344 |
2,020 | 2,206 |
Thereafter | 4,118 |
Total | $ 17,866 |
Goodwill, Core Deposit and Le89
Goodwill, Core Deposit and Leasehold Right Intangibles - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2014 | |
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 64,603,000 | $ 64,603,000 | $ 63,950,000 | $ 12,292,000 | ||
Goodwill acquisition during period | 51,658,000 | |||||
Goodwill increased | $ 653,000 | |||||
Goodwill write-down | $ 1,100,000 | |||||
Goodwill, impairment | 0 | $ 0 | 0 | |||
Weighted average amortization period | 7 years 11 months 9 days | |||||
Estimated amortization expense, One | 1,300,000 | $ 1,300,000 | ||||
Estimated amortization expense, Two | 1,100,000 | 1,100,000 | ||||
Estimated amortization expense, Three | 936,000 | 936,000 | ||||
Estimated amortization expense, Four | 692,000 | 692,000 | ||||
Estimated amortization expense, Five | 628,000 | 628,000 | ||||
Net amortization of leasehold right intangible asset and liabilities | (21,000) | 142,000 | (313,000) | |||
Leasehold Right Intangibles | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Leasehold right intangibles | 1,200,000 | 1,200,000 | 1,400,000 | |||
Net amortization of leasehold right intangible asset and liabilities | 62,000 | $ 142,000 | $ 313,000 | |||
1st Enterprise Bank | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 51,658,000 | |||||
Goodwill acquisition during period | 52,000,000 | |||||
Leasehold right intangibles | $ 390,000 | 390,000 | ||||
1st Enterprise Bank | Leasehold Right Intangibles | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Fair value adjustment of lease acquired | $ 41,000 |
Schedule of Changes in Carrying
Schedule of Changes in Carrying Value of Goodwill (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Balance, beginning of year | $ 63,950,000 | $ 12,292,000 | |
Measurement-period adjustment | 653,000 | ||
Goodwill acquired during the year | 51,658,000 | ||
Impairment losses | $ 0 | 0 | 0 |
Balance, end of year | 64,603,000 | 64,603,000 | 63,950,000 |
Accumulated impairment losses at end of year | $ 0 | $ 0 | $ 0 |
Changes in Gross Amounts of Cor
Changes in Gross Amounts of Core Deposit Intangibles and Related Accumulated Amortization (Detail) - Core Deposit Intangible - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gross amount of CDI: | |||
Balance, beginning of year | $ 9,246 | $ 2,103 | $ 2,103 |
Additions due to acquisitions | 7,143 | ||
Balance, end of year | 9,246 | 9,246 | 2,103 |
Accumulated Amortization: | |||
Balance, beginning of year | (1,056) | (665) | (356) |
Amortization | (1,680) | (391) | (309) |
Balance, end of year | (2,736) | (1,056) | (665) |
Net CDI, end of year | $ 6,510 | $ 8,190 | $ 1,438 |
Bank Owned Life Insurance - Add
Bank Owned Life Insurance - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Entity | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Insurance [Line Items] | |||
Bank-Owned Life Insurance, holding amount | $ 49,912 | $ 38,732 | |
Non-interest income on BOLI policies | 1,180 | 661 | $ 617 |
Increase in cash surrender values on policies | $ 11,000 | ||
Number of insurance companies | Entity | 8 | ||
1st Enterprise Bank | |||
Insurance [Line Items] | |||
Increase in cash surrender values on policies | 1,200 | ||
Holding amount, result of acquisition | $ 10,000 | ||
Minimum | |||
Insurance [Line Items] | |||
Bank-Owned Life Insurance balances, outstanding percentage | 1.00% | ||
Maximum | |||
Insurance [Line Items] | |||
Bank-Owned Life Insurance balances, outstanding percentage | 37.00% |
Investment in California Orga93
Investment in California Organized Investment Network ("COIN") - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Holdings [Line Items] | |||
Investment with Community Development Financial Institutions | $ 270 | ||
Investment period | 60 months | ||
Interest rate of investment | 0.00% | ||
Amount qualified for Investment Tax Credit | $ 543 | $ 516 | $ 640 |
Investment qualification for income tax credit as a percentage | 20.00% | ||
Maturity year of the Investment | 2,020 | ||
Enterprise Community Investment Inc | |||
Investment Holdings [Line Items] | |||
Investment with Community Development Financial Institutions | $ 220 | ||
Amount qualified for Investment Tax Credit | 44 | ||
Valley Economic Development Center | |||
Investment Holdings [Line Items] | |||
Investment with Community Development Financial Institutions | 50 | ||
Amount qualified for Investment Tax Credit | $ 10 |
Qualified Affordable Housing 94
Qualified Affordable Housing Project Investments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Holdings [Line Items] | |||
Investment cost | $ 3,710 | $ 4,141 | $ 4,510 |
Investment in funding obligation | 1,040 | 2,482 | 3,990 |
Tax credits and other tax benefits | 543 | 516 | $ 640 |
Low Income Housing Tax Credits | |||
Investment Holdings [Line Items] | |||
Investment cost | 3,700 | 4,100 | |
Investment in funding obligation | 1,100 | 3,000 | |
Tax credits and other tax benefits | 543 | 516 | |
Amortization expense | $ 436 | $ 370 |
Schedule of Company's Original
Schedule of Company's Original Investment in Affordable Housing Project (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Holdings [Line Items] | |||
Original Investment Value | $ 5,050 | $ 5,050 | $ 5,050 |
Current Recorded Investment | 3,710 | 4,141 | 4,510 |
Unfunded Liability Obligation | 1,040 | 2,482 | 3,990 |
Tax Credits and Benefits | 543 | 516 | 640 |
Amortization of Investments | (159) | (159) | (210) |
Net Income Tax Benefit | 107 | 146 | 155 |
Enterprise Green Communities West II LP | |||
Investment Holdings [Line Items] | |||
Original Investment Value | 1,000 | 1,000 | 1,000 |
Current Recorded Investment | 604 | 704 | 787 |
Unfunded Liability Obligation | 69 | 162 | 190 |
Tax Credits and Benefits | 136 | 127 | 236 |
Amortization of Investments | 92 | 84 | 160 |
Net Income Tax Benefit | 44 | 43 | 76 |
Enterprise Housing Partners Calgreen II Fund LP | |||
Investment Holdings [Line Items] | |||
Original Investment Value | 2,050 | 2,050 | 2,050 |
Current Recorded Investment | 1,426 | 1,588 | 1,735 |
Unfunded Liability Obligation | 165 | 635 | 1,817 |
Tax Credits and Benefits | 198 | 229 | 390 |
Amortization of Investments | 164 | 174 | 314 |
Net Income Tax Benefit | 34 | 55 | 76 |
Enterprise Housing Partners XXIV LP | |||
Investment Holdings [Line Items] | |||
Original Investment Value | 2,000 | 2,000 | 2,000 |
Current Recorded Investment | 1,680 | 1,849 | 1,988 |
Unfunded Liability Obligation | 806 | 1,685 | 1,983 |
Tax Credits and Benefits | 209 | 160 | 14 |
Amortization of Investments | 180 | 112 | 11 |
Net Income Tax Benefit | $ 29 | $ 48 | $ 3 |
Schedule of Anticipated Income
Schedule of Anticipated Income Tax Benefit that is Expected to be Recognized (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Investments [Line Items] | |
2,016 | $ 115 |
2,017 | 116 |
2018 and thereafter | 755 |
Total - anticipated net income tax benefit in Qualified Affordable Housing Projects | 986 |
Enterprise Green Communities West II LP | |
Schedule of Investments [Line Items] | |
2,016 | 43 |
2,017 | 43 |
2018 and thereafter | 199 |
Total - anticipated net income tax benefit in Qualified Affordable Housing Projects | 285 |
Enterprise Housing Partners Calgreen II Fund LP | |
Schedule of Investments [Line Items] | |
2,016 | 42 |
2,017 | 40 |
2018 and thereafter | 266 |
Total - anticipated net income tax benefit in Qualified Affordable Housing Projects | 348 |
Enterprise Housing Partners XXIV LP | |
Schedule of Investments [Line Items] | |
2,016 | 30 |
2,017 | 33 |
2018 and thereafter | 290 |
Total - anticipated net income tax benefit in Qualified Affordable Housing Projects | $ 353 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($) | |
Deposits [Line Items] | ||
Number of customers who maintained balances | Customer | 117 | |
Aggregate Deposits | $ 1,300,000,000 | |
Percentage of customer maintained balances out of total deposit base | 56.00% | |
Amount of time deposits | $ 59,000,000 | |
Amount of Time Deposits maturing in one year | $ 58,000,000 | |
Maturity of time deposits | 1 year | |
Certificates of deposit with balances $100 thousand or more | $ 54,518,000 | $ 61,000,000 |
Certificates of deposit with balances $250 thousand or more | 18,000,000 | 20,000,000 |
Insured Cash Sweep Network [Member] | ||
Deposits [Line Items] | ||
Deposits | 9,300,000 | |
Certificate Of Deposit Account Registry Service | ||
Deposits [Line Items] | ||
Certificates of deposit with balances $100 thousand or more | 29,000,000 | |
Deposits | 29,000,000 | $ 30,000,000 |
Minimum | ||
Deposits [Line Items] | ||
Aggregate Deposits | $ 4,000,000 |
Deposits - Schedule of Maturity
Deposits - Schedule of Maturity of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Time Deposits [Abstract] | ||
Three months or less | $ 8,005 | |
Over three through six months | 17,513 | |
Over six through twelve months | 28,714 | |
Over twelve months | 286 | |
Total | $ 54,518 | $ 61,000 |
Deposits - Schedule of Maturi99
Deposits - Schedule of Maturity of Time Deposits (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Maturities For Time Deposits [Line Items] | ||
Time Deposits of $100 thousand or more | $ 54,518 | $ 61,000 |
Certificate Of Deposit Account Registry Service | ||
Schedule Of Maturities For Time Deposits [Line Items] | ||
Time Deposits of $100 thousand or more | $ 29,000 |
Borrowings and Subordinated 100
Borrowings and Subordinated Debentures - Additional Information (Detail) | May. 19, 2010USD ($) | Dec. 31, 2015USD ($)Debentures | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Securities with a fair value | $ 47,000,000 | $ 32,000,000 | |||
Maximum advances by FHLB | 297,000,000 | ||||
FHLB Borrowings | 0 | 0 | |||
Common stock of FHLB | 8,000,000 | 8,000,000 | |||
Current value of FHLB common stock | 8,000,000 | ||||
Repurchased amount | 0 | 0 | |||
Subordinated debentures | $ 12,372,000 | ||||
Issuance maturity period from its date of issue | 30 years | ||||
Number of debentures | Debentures | 3 | ||||
Subordinated debentures, fair value | $ 3,300,000 | ||||
Subordinated debentures, amortization expense | 159,000 | 120,000 | $ 210,000 | ||
Estimated annual amortization expense on subordinate debenture | $ 159,000 | ||||
Trust preferred securities tier one capital | 25.00% | ||||
Maximum proceeds from issuance of trust preferred securities | $ 15,000,000,000 | ||||
Proceeds from issuance of trust preferred securities | 12,000,000 | ||||
Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of debt securities | $ 12,400,000 | ||||
Federal Home Loan Bank of San Francisco | |||||
Debt Instrument [Line Items] | |||||
Credit facility, percentage of Bank's total assets | 25.00% | ||||
Credit facility, maximum borrowing capacity | $ 651,000,000 | ||||
Credit facility, loan collateral pledge | $ 821,000,000 | ||||
Maximum advances by FHLB | 544,000,000 | ||||
Investment securities pledged with FHLB | 20,000,000 | ||||
Outstanding advances (borrowings) with FHLB | 0 | 0 | |||
PC Bancorp | |||||
Debt Instrument [Line Items] | |||||
Subordinated debentures | $ 12,000,000 | ||||
1st Enterprise Bank | |||||
Debt Instrument [Line Items] | |||||
Acquisition of FHLB capital stock | 3,800,000 | ||||
Subordinated Debentures | |||||
Debt Instrument [Line Items] | |||||
Remaining maturity period | 20 years | ||||
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. | ||||
Trust I | |||||
Debt Instrument [Line Items] | |||||
Subordinated debentures | $ 6,186,000 | ||||
Prepayment penalties | 0 | ||||
Trust II | |||||
Debt Instrument [Line Items] | |||||
Subordinated debentures | 3,093,000 | ||||
Prepayment penalties | 0 | ||||
Trust III | |||||
Debt Instrument [Line Items] | |||||
Subordinated debentures | 3,093,000 | ||||
Prepayment penalties | $ 0 | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Repurchase maturity date | 1 day | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Repurchase maturity date | 180 days | ||||
Trust preferred securities tier one capital | 25.00% | ||||
Short-term borrowings | $ 17,000,000 | $ 16,000,000 |
Terms and Maturity of Bank's Se
Terms and Maturity of Bank's Securities Sold under Agreements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount | $ 14,360 | $ 9,411 |
Interest Rate | 0.19% | 0.20% |
December 31, 2015 | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount | $ 14,360 | |
Term | 4 days | |
Maturity Date | Jan. 4, 2016 | |
December 31, 2015 | Minimum | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Rate | 0.08% | |
December 31, 2015 | Maximum | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Rate | 0.25% | |
December 31, 2014 | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount | $ 9,411 | |
Term | 2 days | |
Maturity Date | Jan. 2, 2015 | |
December 31, 2014 | Minimum | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Rate | 0.13% | |
December 31, 2014 | Maximum | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Rate | 0.25% |
Subordinated Debentures Outstan
Subordinated Debentures Outstanding (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount, gross | $ 12,372 | |
Unamortized fair value adjustment | 2,675 | |
Net | 9,697 | $ 9,538 |
Trust I | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount, gross | $ 6,186 | |
Issuance Date | Dec. 10, 2004 | |
Maturity Date | Mar. 15, 2035 | |
Rate Index | 3 month LIBOR+2.05% | |
Current Rate | 2.56% | |
Next Reset Date | Mar. 15, 2016 | |
Trust II | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount, gross | $ 3,093 | |
Issuance Date | Dec. 23, 2005 | |
Maturity Date | Mar. 15, 2036 | |
Rate Index | 3 month LIBOR+1.75% | |
Current Rate | 2.26% | |
Next Reset Date | Mar. 15, 2016 | |
Trust III | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount, gross | $ 3,093 | |
Issuance Date | Jun. 30, 2006 | |
Maturity Date | Sep. 15, 2036 | |
Rate Index | 3 month LIBOR+1.85% | |
Current Rate | 2.36% | |
Next Reset Date | Mar. 15, 2016 |
Short-Term Borrowings (Detail)
Short-Term Borrowings (Detail) - Securities sold under agreements to repurchase - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | ||
Balance | $ 14,360 | $ 9,411 |
Average Balance | $ 13,966 | $ 13,579 |
Weighted Average Rate | 0.22% | 0.25% |
Derivative Financial Instrum104
Derivative Financial Instruments - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)AgreementDerivativeFinancial_Institution | Dec. 31, 2014USD ($) | |
Derivative [Line Items] | ||
Number of pay-fixed, receive-variable interest rate swap agreements | Agreement | 19 | |
Outstanding swaps original maturity period | 15 years | |
Certificates of deposit with other financial institutions pledged | $ 2,700,000 | |
Investment securities | $ 357,821,000 | $ 274,109,000 |
Interest rate swap contracts fair value | ||
Derivative [Line Items] | ||
Acquisition of interest rate swap contracts | Jul. 31, 2012 | |
Investment securities | $ 2,000,000 | |
Trading securities eligible for use as collateral | $ 4,700,000 | |
1st Enterprise Bank | ||
Derivative [Line Items] | ||
Number of counterparty banks | Financial_Institution | 2 | |
Derivative assets liabilities offset | $ 0 | |
Total notional amount of swaps | $ 28,000,000 | $ 36,000,000 |
Acquisition of interest rate swap contracts | Nov. 30, 2014 | |
Derivatives not Designated as Hedging Instruments | 1st Enterprise Bank | Interest rate swap contracts fair value | ||
Derivative [Line Items] | ||
Swap contracts acquired | Derivative | 12 | |
Offsetting interest-rate swaps acquired | Derivative | 12 |
Balance Sheet Classification of
Balance Sheet Classification of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Asset Derivatives | $ 881 | $ 719 |
Liability Derivatives | 2,545 | 3,515 |
1st Enterprise Bank | Accrued Interest Payable and Other Liabilities | Interest rate swap contracts fair value | ||
Derivative [Line Items] | ||
Liability Derivatives | 881 | 719 |
1st Enterprise Bank | Accrued Interest Receivable and Other Assets | Interest rate swap contracts fair value | ||
Derivative [Line Items] | ||
Asset Derivatives | 881 | 719 |
PC Bancorp | Accrued Interest Payable and Other Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | 1,664 | 2,796 |
PC Bancorp | Accrued Interest Payable and Other Liabilities | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Liability Derivatives | 25,938 | 29,289 |
Derivatives not Designated as Hedging Instruments | PC Bancorp | Accrued Interest Payable and Other Liabilities | Interest rate swap contracts fair value | ||
Derivative [Line Items] | ||
Liability Derivatives | 313 | 519 |
Derivatives Designated as Hedging Instruments | PC Bancorp | Accrued Interest Payable and Other Liabilities | Interest rate swap contracts fair value | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 1,351 | $ 2,277 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Net increase (decrease) in other non-interest income | $ (57) | $ (54) | $ 17 |
Net decrease in interest income on loans | (30) | (14) | (129) |
Net increase (decrease) in other non-interest income | (57) | (54) | 17 |
Subordinated Debentures | |||
Derivative [Line Items] | |||
Increase in fair value of interest rate swap contracts | 70 | ||
Payments on interest rate swap contracts on loans and subordinated debentures | (70) | ||
Derivatives not Designated as Hedging Instruments | Loans, net | |||
Derivative [Line Items] | |||
Increase in fair value of interest rate swap contracts | 206 | 219 | 306 |
Payments on interest rate swap contracts on loans and subordinated debentures | (263) | (273) | (289) |
Derivatives Designated as Hedging Instruments | Loans, net | |||
Derivative [Line Items] | |||
Increase (decrease) in fair value of hedged loans | 133 | 315 | (554) |
Payments on interest rate swap contracts on loans and subordinated debentures | (1,089) | (1,256) | (1,294) |
Derivatives Designated as Hedging Instruments | Subordinated Debentures | |||
Derivative [Line Items] | |||
Increase in fair value of interest rate swap contracts | $ 926 | $ 927 | $ 1,719 |
Securities Sold under Repurchas
Securities Sold under Repurchase Agreements and Derivatives Securities Offset in Consolidated Financial Statements Due to an Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting [Abstract] | ||
Interest rate swap contracts fair value - Gross Amounts Recognized in the Consolidated Balance Sheets | $ 881 | $ 719 |
Interest rate swap contracts fair value - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Interest rate swap contracts fair value - Net Amounts of Assets Presented in the Consolidated Balance Sheets | 881 | 719 |
Interest rate swap contracts fair value - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 881 | 719 |
Interest rate swap contracts fair value - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged | 0 | 0 |
Interest rate swap contracts fair value - Net Amount (Collateral over liability balance required to be pledged) | 0 | 0 |
Total - Gross Amounts Recognized in the Consolidated Balance Sheets | 881 | 719 |
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Total - Net Amounts of Assets Presented in the Consolidated Balance Sheets | 881 | 719 |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 881 | 719 |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged | 0 | 0 |
Total - Net Amount (Collateral over liability balance required to be pledged) | 0 | 0 |
Interest rate swap contracts fair value - Gross Amounts Recognized in the Consolidated Balance Sheets | 2,545 | 3,515 |
Interest rate swap contracts fair value - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Interest rate swap contracts fair value - Net Amounts of Assets Presented in the Consolidated Balance Sheets | 2,545 | 3,515 |
Interest rate swap contracts fair value - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 2,545 | 3,515 |
Interest rate swap contracts fair value - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged | 4,759 | 4,150 |
Interest rate swap contracts fair value - Net Amount (Collateral over liability balance required to be pledged) | 2,214 | 635 |
Securities sold under agreements to repurchase - Gross Amounts Recognized in the Consolidated Balance Sheets | 14,360 | 9,411 |
Securities sold under agreements to repurchase - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Securities sold under agreements to repurchase - Net Amounts of Assets Presented in the Consolidated Balance Sheets | 14,360 | 9,411 |
Securities sold under agreements to repurchase - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 14,360 | 9,411 |
Securities sold under agreements to repurchase - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged | 46,596 | 32,304 |
Securities sold under agreements to repurchase - Net Amount (Collateral over liability balance required to be pledged) | 32,236 | 22,893 |
Total - Gross Amounts Recognized in the Consolidated Balance Sheets | 16,905 | 12,926 |
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Total - Net Amounts of Assets Presented in the Consolidated Balance Sheets | 16,905 | 12,926 |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 16,905 | 12,926 |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged | 51,355 | 36,454 |
Total - Net Amount (Collateral over liability balance required to be pledged) | $ 34,450 | $ 23,528 |
Stock Options and Restricted108
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, fair value at merger | $ 9,600,000 | ||
Tax benefits from stock options exercised | $ 1,300,000 | $ 582,000 | $ 659,000 |
Weighted-average period over which the total compensation cost related to unvested restricted stock grants not yet recognized | 1 year 9 months 18 days | ||
Share based compensation, option Granted | 0 | 0 | 0 |
Stock based compensation expense | $ 2,000 | $ 10,000 | $ 21,000 |
Total intrinsic value of options exercised | $ 6,500,000 | $ 2,100,000 | $ 2,300,000 |
Weighted-average grant-date fair value per share for restricted stock granted | $ 21.51 | $ 19.39 | $ 16.80 |
Total fair value of shares vested | $ 2,700,000 | $ 2,300,000 | $ 1,400,000 |
1st Enterprise Bank | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, intrinsic value at merger | $ 11,000,000 | ||
2007 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued under the plan | 987,583 | ||
Issued shares subsequently cancelled and returned back into the plan | 73,541 | ||
Share based compensation number of shares available for future issuance | 576,505 | ||
Stock options issued | 0 | 0 | 0 |
2007 Equity Incentive Plan | After Amendment | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation number of shares authorized | 1,490,547 | ||
2006 Stock Incentive Plan | 1st Enterprise Bank | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options converted under equity plan | 802,766 | ||
Nonqualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options issued | 0 | 0 | 0 |
Nonqualified Stock Options | Original Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options term | 10 years | ||
Stock option vesting percentage per year | 50.00% | ||
Nonqualified Stock Options | Original Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option vesting percentage per year | 20.00% | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits from stock options exercised | $ 384,000 | $ 233,000 | $ 96,000 |
Future compensation expense related to stock options | $ 3,257,000 | ||
Weighted-average grant-date fair value per share for restricted stock granted | $ 21.51 | ||
Restricted Stock | Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, option Granted | 40,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits from stock options exercised | $ 890,000 | 349,000 | 563,000 |
Future compensation expense related to stock options | 0 | ||
Stock-based compensation expense | 2,700,000 | $ 1,700,000 | $ 1,100,000 |
Stock Options | Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, intrinsic value at merger | $ 8,248,000 |
Future Compensation Expense Rel
Future Compensation Expense Related to Unvested Restricted Stock Grants (Detail) - Restricted Stock $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2,016 | $ 2,149 |
2,017 | 789 |
2,018 | 284 |
2,019 | 35 |
Thereafter | 0 |
Total | $ 3,257 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - Equity Plan - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | ||
Outstanding stock options at beginning, Shares | 1,016,490 | |
Granted, Shares | 0 | |
Exercised, Shares | (454,019) | |
Forfeited, Shares | (5,000) | |
Expired, Shares | 0 | |
Outstanding stock options at ending, Shares | 557,471 | 1,016,490 |
Exercisable options at December 31, 2015, Shares | 557,471 | |
Unvested options at December 31, 2015, Shares | 0 | |
Weighted Average Exercise Price | ||
Outstanding stock options at beginning, Weighted Average Exercise Price | $ 10.13 | |
Granted, Weighted Average Exercise Price | 0 | |
Exercised, Weighted Average Exercise Price | 0 | |
Forfeited, Weighted Average Exercise Price | 0 | |
Expired, Weighted Average Exercise Price | 0 | |
Outstanding stock options at end, Weighted Average Exercise Price | 10.57 | $ 10.13 |
Exercisable options at end, Weighted Average Exercise Price | 10.57 | |
Unvested options at end, Weighted Average Exercise Price | $ 0 | |
Weighted Average Remaining Contractual Term | ||
Outstanding stock options, Weighted Average Remaining Contractual Term | 1 year 7 months 6 days | |
Exercisable options at end, Weighted Average Remaining Contractual Term | 9 months 18 days | |
Unvested options at end, Weighted Average Remaining Contractual Term | 9 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding stock options at beginning, Aggregate Intrinsic Value | $ 15,479 | |
Outstanding stock options at end, Aggregate Intrinsic Value | 8,248 | $ 15,479 |
Exercisable options at end, Aggregate Intrinsic Value | 8,248 | |
Unvested options at end, Aggregate Intrinsic Value | $ 0 |
Restricted Stock Activity (Deta
Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted-Average Grant-Date Fair Value per Share | |||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 21.51 | $ 19.39 | $ 16.80 |
Restricted Stock | |||
Number of Shares | |||
Unvested, at beginning, Number of Shares | 309,506 | ||
Granted, Number of Shares | 132,500 | ||
Vested, Number of Shares | (119,873) | ||
Cancelled and forfeited, Number of Shares | (10,675) | ||
Unvested, at end, Number of Shares | 311,458 | 309,506 | |
Weighted-Average Grant-Date Fair Value per Share | |||
Unvested, at beginning, Weighted-Average Grant-Date Fair Value per Share | $ 16.41 | ||
Granted, Weighted-Average Grant-Date Fair Value per Share | 21.51 | ||
Vested, Weighted-Average Grant-Date Fair Value per Share | 14.52 | ||
Cancelled and forfeited, Weighted-Average Grant-Date Fair Value per Share | 16.92 | ||
Unvested, at end, Weighted-Average Grant-Date Fair Value per Share | $ 19.29 | $ 16.41 |
Supplemental Executive and D112
Supplemental Executive and Director Retirement Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued Supplemental executive retirement plan | $ 3,300 | $ 3,200 | |
Participants vesting percentage of their own deferral account | 100.00% | ||
Supplemental Executive Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued Supplemental Employee Salary Plan | $ 1,100 | ||
Accrued Deferred Director Fee Plan | 282 | ||
Deferred salary compensation expense | 947 | 705 | $ 661 |
Accrued Split Dollar Employee insurance plan | 1,200 | 1,200 | |
Split dollar life insurance expense | $ 39 | 38 | $ 36 |
Supplemental Executive Retirement Plan | 1st Enterprise Bank | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability balance at acquisition of deferred compensation plan | $ 596 | ||
Participants vesting percentage of their own deferral account | 100.00% | ||
Maximum tenure for payments to be made to the employees after employment | 10 years |
Defined Contribution Plan Four
Defined Contribution Plan Four Zero One K - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Participants vesting percentage of their own deferrals | 100.00% | ||
Contributions made to employees | $ 642,000 | $ 418,000 | $ 431,000 |
Matching contribution per dollar by employer | $ 0.50 | $ 0.50 | $ 0.50 |
Employee maximum contribution percentage | 3.00% | 3.00% | 4.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | |
Effective Tax Rate [Line Items] | ||||
Uncertain tax positions | $ 0 | $ 0 | $ 0 | |
Annual limitation of operating losses | $ 624,000 | |||
Capital loss carryforward | $ 182,000 | |||
Capital losses carryforward remaining expiration year | 2,016 | |||
State net operating loss carryforward | 1,300,000 | |||
Capital losses carryforward remaining expiration year | 2,019 | |||
Net tax benefits | $ 107,000 | $ 146,000 | $ 155,000 | |
PC Bancorp | ||||
Effective Tax Rate [Line Items] | ||||
Capital loss carryforward | 54,000 | 54,000 | ||
California Oaks State Bank [Member] | ||||
Effective Tax Rate [Line Items] | ||||
Federal net operating loss carry-forward attributable to COSB acquisition | 0 | 282,000 | ||
State net operating loss carryforwards attributable to COSB acquisition | $ 0 | $ 165,000 |
Income Tax Expense (Detail)
Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision | |||||||||||
Federal | $ 9,265 | $ 4,517 | $ 1,669 | ||||||||
State | 2,923 | 1,183 | 238 | ||||||||
Total current provision | 12,188 | 5,700 | 1,907 | ||||||||
Deferred provision | |||||||||||
Federal | 291 | 382 | 2,674 | ||||||||
State | 389 | 350 | 427 | ||||||||
Total deferred provision | 680 | 732 | 3,101 | ||||||||
Total current and deferred provision | $ 3,312 | $ 3,355 | $ 3,506 | $ 2,695 | $ 733 | $ 2,157 | $ 1,869 | $ 1,673 | $ 12,868 | $ 6,432 | $ 5,008 |
Components of Net Deferred Tax
Components of Net Deferred Tax Asset Recognized Accompanying Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets | ||
Federal tax loss carryforward | $ 64 | $ 99 |
State tax loss carryforward | 170 | 162 |
Allowance for loan loss | 7,473 | 5,823 |
Purchase accounting and loan fair value adjustments | 7,024 | 9,430 |
Accruals and other liabilities | 958 | 1,457 |
Stock compensation and deferred compensation costs | 5,732 | 6,703 |
Net unrealized loss on securities available-for-sale | 593 | |
Start up, organizational and other costs | 332 | 612 |
Total deferred tax assets | 22,346 | 24,286 |
Deferred Tax Liabilities | ||
Net unrealized gain on securities available-for-sale | (138) | |
State taxes | (441) | (1,041) |
Unamortized fair value on subordinated debentures | (1,230) | (1,310) |
Core deposit intangibles | (2,984) | (3,754) |
Prepaid expense and other | (652) | (1,524) |
Total deferred tax liabilities | (5,307) | (7,767) |
Valuation allowance | (6) | (15) |
Deferred tax assets, net | $ 17,033 | $ 16,504 |
Reconciliation of Statutory Inc
Reconciliation of Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal income tax expense at statutory rate | $ 11,937 | $ 5,369 | $ 5,178 | ||||||||
State franchise taxes, net of federal benefit, excluding LIHTC investments | 2,236 | 1,209 | 524 | ||||||||
Effect of rate change on net deferred tax asset | (326) | ||||||||||
Release of state valuation allowance on use of net operating loss | (29) | (68) | (68) | ||||||||
Meals and entertainment, dues and other non-deductible items | 132 | 75 | 54 | ||||||||
Cash surrender life insurance | (453) | (231) | (210) | ||||||||
Stock compensation expense | (100) | (53) | (126) | ||||||||
LIHTC investments | (141) | (119) | (155) | ||||||||
Merger costs | 515 | 5 | |||||||||
Tax Exempt Income | (314) | ||||||||||
Other | (400) | (265) | 132 | ||||||||
Total current and deferred provision | $ 3,312 | $ 3,355 | $ 3,506 | $ 2,695 | $ 733 | $ 2,157 | $ 1,869 | $ 1,673 | $ 12,868 | $ 6,432 | $ 5,008 |
Federal income tax expense at statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
State franchise taxes, net of federal benefit, excluding LIHTC investments | 6.55% | 7.88% | 3.54% | ||||||||
Effect of rate change on net deferred tax asset | (2.20%) | ||||||||||
Release of state valuation allowance on use of net operating loss | (0.09%) | (0.44%) | (0.46%) | ||||||||
Meals and entertainment, dues and other non-deductible items | 0.39% | 0.49% | 0.37% | ||||||||
Cash surrender life insurance | (1.33%) | (1.51%) | (1.42%) | ||||||||
Stock compensation expense | (0.29%) | (0.35%) | (0.85%) | ||||||||
LIHTC investments | (0.41%) | (0.77%) | (1.05%) | ||||||||
Merger costs | 3.36% | 0.03% | |||||||||
Tax Exempt Income | (0.92%) | ||||||||||
Other | (1.17%) | (1.73%) | 0.89% | ||||||||
Combined federal and state tax, effective rate | 37.73% | 41.93% | 33.85% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2018 | Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||||||
Shares issued during period upon exercise of stock options for total value | $ 4,299 | $ 2,029 | $ 2,790 | |||
Shares repurchased of restricted stock value | $ 971 | |||||
Share based compensation, restricted shares issued | 81,825 | |||||
Preferred stock, liquidation preference per share | $ 1,000 | |||||
Carrying value of preferred stock | $ 16,995 | $ 16,004 | $ 16,995 | |||
Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock issued | 16,400 | |||||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 | $ 1,000 | |||
Coupon dividend rate,fixed | 1.00% | |||||
Coupon dividend rate | 9.00% | |||||
Coupon dividend rate, description | The coupon dividend rate will adjust to 9% if the preferred stock remains outstanding beyond January 2016. | |||||
Scenario, Forecast | Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Dividend yield from business combination accounting | 7.00% | |||||
1st Enterprise Bank | ||||||
Class of Stock [Line Items] | ||||||
Number of Non-Cumulative Perpetual Preferred Stock, Series D converted to Non-Cumulative Perpetual Preferred Stock, Series A | 16,400 | |||||
Preferred stock estimated period | 4 years | |||||
Preferred stock net discount | $ 479 | |||||
Preferred stock accretion on net discount | 1,100 | $ 991 | ||||
Carrying value of preferred stock | 17,000 | 17,000 | ||||
Preferred stock value, gross | 16,000 | $ 16,000 | ||||
Preferred stock value net premium | $ 600 | |||||
1st Enterprise Bank | Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Fair value of preferred stock | $ 16,000 | |||||
1st Enterprise Bank | SBLF | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock issued | 16,400 | |||||
Restricted Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares issued during period upon exercise of stock options | 454,019 | |||||
Shares issued during period upon exercise of stock options for total value | $ 4,300 | |||||
Shares of restricted stock issued to employees and directors | 132,500 | |||||
Share based compensation, unvested restricted shares cancelled | 44,311 | |||||
Unvested Restricted Stock | ||||||
Class of Stock [Line Items] | ||||||
Share based compensation, unvested restricted shares cancelled | 10,675 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net unrealized gains (losses) on investment securities: Before Tax | |||
Beginning balance | $ 333 | $ (348) | |
Net unrealized gain (losses) arising during the period | (1,742) | 681 | |
Ending balance | (1,409) | 333 | $ (348) |
Net unrealized gains (losses) on investment securities: Tax Effect | |||
Beginning balance | (143) | 143 | |
Net unrealized gain (losses) arising during the period | 736 | (286) | |
Ending balance | 593 | (143) | 143 |
Net unrealized gains (losses) on investment securities: Net of Tax | |||
Beginning balance | 190 | (205) | |
Net unrealized gain (losses) arising during the period | (1,006) | 395 | (1,577) |
Ending balance | $ (816) | $ 190 | $ (205) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Commitments [Line Items] | ||
Legal proceedings against the company | $ 0 | |
Allowance for losses on unfunded loan commitments | 608,000 | $ 471,000 |
Commitments to Extend Credit | ||
Other Commitments [Line Items] | ||
Financial instruments with off balance sheet risk | 806,000,000 | 720,000,000 |
Commitments to Extend Credit | Standby Letters of Credit | ||
Other Commitments [Line Items] | ||
Financial instruments with off balance sheet risk | $ 73,000,000 | $ 57,000,000 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) - USD ($) | Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2009 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Trust preferred securities tier one capital | 25.00% | |||
Trust preferred securities included in tier one risk based capital asset | $ 15,000,000,000 | |||
Dividend payment on preferred shares | $ 183,000 | $ 41,000 | ||
Maximum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Trust preferred securities tier one capital | 25.00% | |||
1st Enterprise Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Number of Non-Cumulative Perpetual Preferred Stock, Series D converted to Non-Cumulative Perpetual Preferred Stock, Series A | 16,400 | |||
Dividend payment on preferred shares | $ 41,000 | |||
SBLF | 1st Enterprise Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Preferred stock issued | 16,400 |
Compliance with Regulatory Capi
Compliance with Regulatory Capital Requirements under Banking Regulations (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CU Bancorp | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio | 9.67% | 12.92% |
Common Equity Tier 1 ratio | 9.61% | |
Total Tier 1 risk-based capital ratio | 10.85% | 10.95% |
Total risk-based capital ratio | 11.54% | 11.61% |
Common Equity Tier 1, Amount | $ 223,977 | |
Total Tier 1 capital, Amount | 252,681 | $ 218,147 |
Total risk-based capital, Amount | 268,971 | 231,228 |
Average total assets, Amount | 2,611,774 | 1,689,096 |
Risk-weighted assets, Amount | $ 2,329,770 | $ 1,992,043 |
CU Bancorp | Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio, Adequately Capitalized | 4.00% | |
Common Equity Tier 1 ratio, Adequately Capitalized | 4.50% | |
Total Tier 1 risk-based capital ratio, Adequately Capitalized | 6.00% | |
Total risk-based capital ratio, Adequately Capitalized | 8.00% | |
Tier 1 leverage ratio, Well Capitalized | 5.00% | |
Common Equity Tier 1 ratio, Well Capitalized | 6.50% | |
Total Tier 1 risk-based capital ratio, Well Capitalized | 8.00% | |
Total risk-based capital ratio, Well Capitalized | 10.00% | |
California United Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio | 9.34% | 12.44% |
Common Equity Tier 1 ratio | 10.47% | |
Total Tier 1 risk-based capital ratio | 10.47% | 10.55% |
Total risk-based capital ratio | 11.17% | 11.20% |
Common Equity Tier 1, Amount | $ 243,989 | |
Total Tier 1 capital, Amount | 243,989 | $ 210,031 |
Total risk-based capital, Amount | 260,279 | 223,112 |
Average total assets, Amount | 2,612,206 | 1,688,308 |
Risk-weighted assets, Amount | $ 2,329,798 | $ 1,991,253 |
California United Bank | Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio, Adequately Capitalized | 4.00% | |
Common Equity Tier 1 ratio, Adequately Capitalized | 4.50% | |
Total Tier 1 risk-based capital ratio, Adequately Capitalized | 6.00% | |
Total risk-based capital ratio, Adequately Capitalized | 8.00% | |
Tier 1 leverage ratio, Well Capitalized | 5.00% | |
Common Equity Tier 1 ratio, Well Capitalized | 6.50% | |
Total Tier 1 risk-based capital ratio, Well Capitalized | 8.00% | |
Total risk-based capital ratio, Well Capitalized | 10.00% |
Financial Assets and Financial
Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available-for-sale | $ 315,785 | $ 226,962 |
Interest Rate Swap Contracts | 881 | 719 |
Interest Rate Swap Contracts | 2,545 | 3,515 |
Interest rate swap contracts fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Swap Contracts | 881 | 719 |
Interest Rate Swap Contracts | 2,545 | 3,515 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available-for-sale | 315,785 | 226,962 |
Significant Other Observable Inputs (Level 2) | Interest rate swap contracts fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Swap Contracts | 881 | 719 |
Interest Rate Swap Contracts | $ 2,545 | $ 3,515 |
Fair Value Information - Additi
Fair Value Information - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets measured at fair value on recurring basis | $ 0 | $ 0 |
Financial liabilities measured at fair value on recurring basis | 0 | 0 |
Fair Value Hierarchy for Assets Measured on Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfer of assets in or out of Level 3 | 0 | 0 |
Fair value assets transfer from level 1 to level 2 | 0 | 0 |
Fair value assets transfer from level 2 to level 1 | 0 | $ 0 |
Fair Value Hierarchy for Asset Measured on Non-recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfer of assets in or out of Level 3 | 0 | |
Fair value assets transfer from level 1 to level 2 | 0 | |
Fair value assets transfer from level 2 to level 1 | $ 0 |
Balances of Assets and Liabilit
Balances of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 325 | $ 2,022 |
Fair Value Hierarchy for Asset Measured on Non-recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) | 1,172 | |
Other real estate owned | 325 | 850 |
Total | 325 | 2,022 |
Significant Unobservable Inputs (Level 3) | Fair Value Hierarchy for Asset Measured on Non-recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans) | 1,172 | |
Other real estate owned | 325 | 850 |
Total | $ 325 | $ 2,022 |
Significant Unobservable Inputs
Significant Unobservable Inputs Used in Fair Value Measurements for Level 3 Assets and Liabilities Measured at Fair Value on Recurring or Non-Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 325 | $ 2,022 |
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Valuation Model and/or Factors | Estimated selling costs | |
Estimated selling costs | 15.00% | |
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off | Credit Loss Estimate of Aged Accounts Receivable Collateral | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1,172 | |
Valuation Model and/or Factors | Credit loss factors on aging of accounts receivable collateral | |
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off | Credit Loss Estimate of Aged Accounts Receivable Collateral | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Credit loss factors on aging of accounts receivable collateral | 10.00% | |
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off | Credit Loss Estimate of Aged Accounts Receivable Collateral | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Credit loss factors on aging of accounts receivable collateral | 80.00% | |
Other Real Estate Owned | Broker Opinion of Value | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 325 | |
Valuation Model and/or Factors | Sales approach Estimated selling costs | |
Estimated selling costs | 6.00% | |
Other Real Estate Owned | Residential Real Estate Appraisal | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 850 | |
Valuation Model and/or Factors | Sales approach Estimated selling costs | |
Estimated selling costs | 6.00% |
Level in Fair Value Hierarchy f
Level in Fair Value Hierarchy for Financial Instruments Estimated Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available-for-sale | $ 315,785 | $ 226,962 |
Investment securities held-to-maturity | 42,339 | 47,159 |
Loans, net, Carrying Amount | 1,817,481 | 1,612,113 |
Loans, net, Fair Value | 1,851,220 | 1,627,717 |
Interest rate swap contracts, Carrying Amount | 881 | 719 |
Interest rate swap contracts, Fair Value | 881 | 719 |
Certificates of deposit, Carrying Amount | 58,502 | 64,840 |
Certificates of deposit, Fair Value | 58,502 | 64,857 |
Securities sold under agreements to repurchase, Carrying Amount | 14,360 | 9,411 |
Securities sold under agreements to repurchase, Fair Value | 14,360 | 9,411 |
Subordinated debentures, Carrying Amount | 9,697 | 9,538 |
Subordinated debentures, Fair Value | 12,372 | 12,372 |
Interest rate swap contracts, Carrying Amount | 2,545 | 3,515 |
Interest rate swap contracts, Fair Value | 2,545 | 3,515 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available-for-sale | 315,785 | 226,962 |
Investment securities held-to-maturity, Carrying Amount | 42,036 | 47,147 |
Loans, net, Carrying Amount | 1,817,481 | 1,612,113 |
Interest rate swap contracts, Carrying Amount | 881 | 719 |
Certificates of deposit, Carrying Amount | 58,502 | 64,840 |
Securities sold under agreements to repurchase, Carrying Amount | 14,360 | 9,411 |
Subordinated debentures, Carrying Amount | 9,697 | 9,538 |
Interest rate swap contracts, Carrying Amount | 2,545 | 3,515 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available-for-sale | 315,785 | 226,962 |
Investment securities held-to-maturity | 42,339 | 47,159 |
Interest rate swap contracts, Fair Value | 881 | 719 |
Certificates of deposit, Fair Value | 58,502 | 64,857 |
Securities sold under agreements to repurchase, Fair Value | 14,360 | 9,411 |
Subordinated debentures, Fair Value | 12,372 | 12,372 |
Interest rate swap contracts, Fair Value | 2,545 | 3,515 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net, Fair Value | $ 1,851,220 | $ 1,627,717 |
Summary Quarterly Data (Detail)
Summary Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Interest Income | $ 23,807 | $ 23,106 | $ 21,941 | $ 21,288 | $ 16,264 | $ 13,238 | $ 13,039 | $ 12,636 | $ 90,142 | $ 55,177 | $ 50,846 |
Interest expense | 705 | 704 | 668 | 646 | 528 | 470 | 461 | 463 | 2,723 | 1,922 | 2,079 |
Net Interest Income | 23,102 | 22,402 | 21,273 | 20,642 | 15,736 | 12,768 | 12,578 | 12,173 | 87,419 | 53,255 | 48,767 |
Provision for loan losses | 2,249 | 705 | 683 | 1,443 | 1,721 | 35 | 408 | 75 | 5,080 | 2,239 | 2,852 |
Net interest income after provision for loan losses | 20,853 | 21,697 | 20,590 | 19,199 | 14,015 | 12,733 | 12,170 | 12,098 | 82,339 | 51,016 | 45,915 |
Non-interest income | 3,039 | 2,988 | 3,095 | 2,608 | 2,132 | 2,004 | 1,783 | 1,790 | 11,730 | 7,709 | 6,518 |
Non-interest expense | 15,073 | 15,067 | 14,912 | 14,913 | 14,107 | 10,031 | 9,698 | 9,549 | 59,965 | 43,385 | 37,640 |
Net income before provision for income tax expense | 8,819 | 9,618 | 8,773 | 6,894 | 2,040 | 4,706 | 4,255 | 4,339 | 34,104 | 15,340 | 14,793 |
Provision for income tax | 3,312 | 3,355 | 3,506 | 2,695 | 733 | 2,157 | 1,869 | 1,673 | 12,868 | 6,432 | 5,008 |
Net income | 5,507 | 6,263 | 5,267 | 4,199 | 1,307 | 2,549 | 2,386 | 2,666 | 21,236 | 8,908 | 9,785 |
Preferred stock dividends and discount accretion | 297 | 293 | 312 | 272 | 124 | 1,174 | 124 | ||||
Net Income available to common shareholders | $ 5,210 | $ 5,970 | $ 4,955 | $ 3,927 | $ 1,183 | $ 2,549 | $ 2,386 | $ 2,666 | $ 20,062 | $ 8,784 | $ 9,785 |
Basic income per share | $ 0.31 | $ 0.36 | $ 0.30 | $ 0.24 | $ 0.09 | $ 0.23 | $ 0.22 | $ 0.25 | $ 1.21 | $ 0.77 | $ 0.93 |
Diluted income per share | $ 0.30 | $ 0.35 | $ 0.29 | $ 0.23 | $ 0.09 | $ 0.23 | $ 0.21 | $ 0.24 | $ 1.18 | $ 0.75 | $ 0.90 |
Parent Company Condensed Balanc
Parent Company Condensed Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and due from banks | $ 50,960 | $ 33,996 | ||
Accrued interest receivable and other assets | 35,734 | 34,916 | ||
Total Assets | 2,634,642 | 2,265,117 | ||
LIABILITIES | ||||
Subordinated debentures | 9,697 | 9,538 | ||
Accrued interest payable and other liabilities | 16,987 | 19,283 | ||
Total Liabilities | 2,327,835 | 1,985,925 | ||
SHAREHOLDERS' EQUITY | 306,807 | 279,192 | $ 137,924 | $ 125,623 |
Total Liabilities and Shareholders' Equity | 2,634,642 | 2,265,117 | ||
CU Bancorp | ||||
ASSETS | ||||
Cash and due from banks | 6,756 | 4,612 | ||
Loans | 882 | 1,410 | ||
Investment in subsidiary | 310,263 | 284,216 | ||
Accrued interest receivable and other assets | 4 | 103 | ||
Total Assets | 317,905 | 290,341 | ||
LIABILITIES | ||||
Subordinated debentures | 9,697 | 9,538 | ||
Accrued interest payable and other liabilities | 1,401 | 1,611 | ||
Total Liabilities | 11,098 | 11,149 | ||
SHAREHOLDERS' EQUITY | 306,807 | 279,192 | ||
Total Liabilities and Shareholders' Equity | $ 317,905 | $ 290,341 |
Parent Company Condensed Income
Parent Company Condensed Income Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income | $ 23,807 | $ 23,106 | $ 21,941 | $ 21,288 | $ 16,264 | $ 13,238 | $ 13,039 | $ 12,636 | $ 90,142 | $ 55,177 | $ 50,846 |
Interest expense | 705 | 704 | 668 | 646 | 528 | 470 | 461 | 463 | 2,723 | 1,922 | 2,079 |
Income tax benefit | (3,312) | (3,355) | (3,506) | (2,695) | (733) | (2,157) | (1,869) | (1,673) | (12,868) | (6,432) | (5,008) |
Net Income | $ 5,507 | $ 6,263 | $ 5,267 | $ 4,199 | $ 1,307 | $ 2,549 | $ 2,386 | $ 2,666 | 21,236 | 8,908 | $ 9,785 |
CU Bancorp | |||||||||||
Interest Income | 71 | 165 | |||||||||
Interest expense | 438 | 430 | |||||||||
Operating Expenses | 676 | 911 | |||||||||
Total Expenses | 1,114 | 1,341 | |||||||||
Loss Before Income Tax Benefit and Equity in Undistributed Earnings of Subsidiary | (1,043) | (1,176) | |||||||||
Income tax benefit | 466 | 257 | |||||||||
Loss Before Equity in Undistributed Earnings of Subsidiary | (577) | (919) | |||||||||
Equity in undistributed earnings of subsidiary | 21,813 | 9,827 | |||||||||
Net Income | $ 21,236 | $ 8,908 |
Parent Company Condensed Cash F
Parent Company Condensed Cash Flow Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net income: | $ 5,507 | $ 6,263 | $ 5,267 | $ 4,199 | $ 1,307 | $ 2,549 | $ 2,386 | $ 2,666 | $ 21,236 | $ 8,908 | $ 9,785 |
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Provision for loan losses | 2,249 | $ 705 | $ 683 | 1,443 | 1,721 | $ 35 | $ 408 | 75 | 5,080 | 2,239 | 2,852 |
Accretion of subordinated debenture discount | 159 | 120 | 210 | ||||||||
Decrease (increase) in accrued interest receivable and other assets | 456 | 2,428 | (7,558) | ||||||||
Increase (decrease) in accrued interest payable and other liabilities | (1,964) | 2,041 | 6,459 | ||||||||
Net cash provided by operating activities | 21,364 | 12,618 | 8,577 | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from exercise of stock options | 4,299 | 2,029 | 2,790 | ||||||||
Issuance costs of common stock for 1st Enterprise merger | (27) | ||||||||||
Restricted stock repurchase | (971) | (471) | (422) | ||||||||
Dividends paid on preferred stock | (183) | (41) | |||||||||
Net increase (decrease) in cash and cash equivalents | 89,477 | (108,701) | 58,391 | ||||||||
Cash and cash equivalents, beginning of year | 132,586 | 241,287 | 132,586 | 241,287 | 182,896 | ||||||
Cash and cash equivalents, end of year | 222,063 | 132,586 | 222,063 | 132,586 | 241,287 | ||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for interest | 2,877 | 1,801 | 2,029 | ||||||||
CU Bancorp | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income: | 21,236 | 8,908 | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Equity in undistributed earnings of subsidiary | (21,813) | (9,827) | |||||||||
Provision for loan losses | (100) | ||||||||||
Net accretion of discounts/premiums | (19) | (26) | |||||||||
Accretion of subordinated debenture discount | 159 | 159 | |||||||||
Decrease (increase) in accrued interest receivable and other assets | (27) | 1,351 | |||||||||
Increase (decrease) in accrued interest payable and other liabilities | (84) | 396 | |||||||||
Net cash provided by operating activities | (548) | 861 | |||||||||
Cash flows from investing activities: | |||||||||||
Cash paid for 1st Enterprise fractional shares and dissenting shareholder | (89) | ||||||||||
Capital contribution made to subsidiary | (1,000) | (2,500) | |||||||||
Net decrease in loans | 547 | 502 | |||||||||
Net cash used in investing activities | (453) | (2,087) | |||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from exercise of stock options | 4,299 | 2,029 | |||||||||
Issuance costs of common stock for 1st Enterprise merger | (27) | ||||||||||
Restricted stock repurchase | (971) | (471) | |||||||||
Dividends paid on preferred stock | (183) | (41) | |||||||||
Net cash provided by financing activities | 3,145 | 1,490 | |||||||||
Net increase (decrease) in cash and cash equivalents | 2,144 | 264 | |||||||||
Cash and cash equivalents, beginning of year | $ 4,612 | $ 4,348 | 4,612 | 4,348 | |||||||
Cash and cash equivalents, end of year | $ 6,756 | $ 4,612 | 6,756 | 4,612 | $ 4,348 | ||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for interest | $ 277 | $ 270 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)Relationship | Dec. 31, 2014USD ($) | |
Minimum | ||
Related Party Transaction [Line Items] | ||
Beneficial owners, Ownership percentage | 5.00% | |
Affiliates Including Principal Shareholders | ||
Related Party Transaction [Line Items] | ||
Related party transaction, Amount | $ 0 | $ 0 |
Executive Officers and Directors | ||
Related Party Transaction [Line Items] | ||
Related party transaction, Amount | $ 0 | 0 |
Number of lending relationships | Relationship | 2 | |
Immediate Family or Associates of Any of the Foregoing Persons | ||
Related Party Transaction [Line Items] | ||
Related party transaction, Amount | $ 0 | 0 |
Trust for Benefit of Employees | ||
Related Party Transaction [Line Items] | ||
Related party transaction, Amount | $ 0 | $ 0 |