Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 14, 2014 | Jun. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'PACIFIC PREMIER BANCORP INC | ' | ' |
Entity Central Index Key | '0001028918 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $196,667,287 |
Entity Common Stock, Shares Outstanding | ' | 17,224,144 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $126,787 | $59,325 |
Federal funds sold | 26 | 27 |
Cash and cash equivalents | 126,813 | 59,352 |
Investment securities available for sale | 256,089 | 84,066 |
FHLB stock/Federal Reserve Bank stock, at cost | 15,450 | 11,247 |
Loans held for sale, net | 3,147 | 3,681 |
Loans held for investment | 1,240,123 | 982,207 |
Allowance for loan losses | -8,200 | -7,994 |
Loans held for investment, net | 1,231,923 | 974,213 |
Accrued interest receivable | 6,254 | 4,126 |
Other real estate owned | 1,186 | 2,258 |
Premises and equipment | 9,864 | 8,575 |
Deferred income taxes | 8,477 | 6,887 |
Bank owned life insurance | 24,051 | 13,485 |
Intangible assets | 6,628 | 2,626 |
Goodwill | 17,428 | ' |
Other assets | 6,877 | 3,276 |
TOTAL ASSETS | 1,714,187 | 1,173,792 |
LIABILITIES: | ' | ' |
Non-interest bearing | 366,755 | 213,636 |
Interest-bearing | 939,531 | 691,132 |
Total deposits | 1,306,286 | 904,768 |
FHLB advances and other borrowings | 204,091 | 115,500 |
Subordinated debentures | 10,310 | 10,310 |
Accrued expenses and other liabilities | 18,274 | 8,697 |
Total liabilities | 1,538,961 | 1,039,275 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Common stock, $.01 par value; 25,000,000 shares authorized; 16,656,279 shares at December 31, 2013 and 13,661,648 shares at December 31, 2012 issued and outstanding | 166 | 137 |
Additional paid-in capital | 143,322 | 107,453 |
Retained earnings | 34,815 | 25,822 |
Accumulated other comprehensive income (loss), net of tax (benefit) of ($2,152) at December 31, 2013, and $772 at December 31, 2012 | -3,077 | 1,105 |
TOTAL STOCKHOLDERS' EQUITY | 175,226 | 134,517 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,714,187 | $1,173,792 |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 16,656,279 | 13,661,648 |
Common stock, shares outstanding | 16,656,279 | 13,661,648 |
Accumulated other comprehensive income (loss), tax (benefit) (in dollars) | ($2,152) | $772 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INTEREST INCOME | ' | ' | ' |
Loans | $57,807 | $49,659 | $46,369 |
Other interest-earning assets | 5,711 | 3,288 | 3,856 |
Total interest income | 63,518 | 52,947 | 50,225 |
INTEREST EXPENSE | ' | ' | ' |
Deposits | 4,065 | 5,853 | 8,288 |
FHLB advances and other borrowings | 984 | 970 | 998 |
Subordinated debentures | 307 | 326 | 310 |
Total interest expense | 5,356 | 7,149 | 9,596 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 58,162 | 45,798 | 40,629 |
PROVISION FOR LOAN LOSSES | 1,860 | 751 | 3,255 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 56,302 | 45,047 | 37,374 |
NONINTEREST INCOME | ' | ' | ' |
Loan servicing fee income | 1,192 | 941 | 1,060 |
Bank and other fee income | 1,873 | 1,940 | 2,195 |
Net gain (loss) from loan sales | 3,228 | 628 | -3,605 |
Net gain from investment securities | 1,544 | 1,953 | 1,589 |
Other-than-temporary-impairment loss on investment securities | -4 | -159 | -617 |
Gain on FDIC transactions | ' | 5,340 | 4,189 |
Other income | 1,260 | 1,929 | 1,702 |
Total noninterest income | 9,093 | 12,572 | 6,513 |
NONINTEREST EXPENSE | ' | ' | ' |
Compensation and benefits | 23,018 | 16,281 | 13,205 |
Premises and occupancy | 5,797 | 4,070 | 3,501 |
Data processing | 3,080 | 2,366 | 1,419 |
OREO operations, net | 618 | 1,653 | 1,497 |
FDIC insurance premiums | 749 | 638 | 809 |
Legal and audit | 1,863 | 2,134 | 1,438 |
Marketing expense | 1,088 | 858 | 1,287 |
Office and postage expense | 1,313 | 830 | 850 |
Loan related expense | 1,009 | 912 | 699 |
Deposit related expense | 1,818 | 188 | 553 |
Merger related expense | 6,926 | ' | ' |
Other expense | 3,536 | 1,924 | 1,646 |
Total noninterest expense | 50,815 | 31,854 | 26,904 |
INCOME BEFORE INCOME TAX | 14,580 | 25,765 | 16,983 |
INCOME TAX | 5,587 | 9,989 | 6,411 |
NET INCOME | $8,993 | $15,776 | $10,572 |
EARNINGS PER SHARE | ' | ' | ' |
Basic (in dollars per share) | $0.57 | $1.49 | $1.05 |
Diluted (in dollars per share) | $0.54 | $1.44 | $0.99 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ' | ' | ' |
Basic (in shares) | 15,798,885 | 10,571,073 | 10,092,181 |
Diluted (in shares) | 16,609,954 | 10,984,034 | 10,630,720 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ' | ' | ' |
Net Income | $8,993 | $15,776 | $10,572 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Unrealized holding gains (losses) on securities arising during the period, net of income taxes (benefits) of ($2.3 million) for 2013, $1.4 million for 2012 and $1.5 million for 2011 | -3,273 | 1,939 | 2,170 |
Reclassification adjustment for net gain on sale of securities included in net income, net of income taxes of $635,000 for 2013, $801,000 for 2012 and $651,000 for 2011 | -909 | -1,152 | -938 |
Net unrealized gain (loss) on securities, net of income taxes (benefits) of ($2.9) million for 2013, $551,000 for 2012 and $860,000 for 2011 | -4,182 | 787 | 1,232 |
Comprehensive Income | $4,811 | $16,563 | $11,804 |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ' | ' | ' |
Tax effect on unrealized holding gains (losses) on securities arising during the period | ($2,300,000) | $1,400,000 | $1,500,000 |
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | 635,000 | 801,000 | 651,000 |
Tax effect on net unrealized gain (loss) on securities | ($2,900,000) | $551,000 | $860,000 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2010 | $78,602 | $100 | $79,942 | ($526) | ($914) |
Balance (in shares) at Dec. 31, 2010 | ' | 10,033,836 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net Income | 10,572 | ' | ' | 10,572 | ' |
Other comprehensive income | 1,232 | ' | ' | ' | 1,232 |
Share-based compensation expense | 208 | ' | 208 | ' | ' |
Repurchase of warrants | -3,660 | ' | -3,660 | ' | ' |
Warrant exercise | 274 | 4 | 270 | ' | ' |
Warrant exercise (in shares) | ' | 366,400 | ' | ' | ' |
Repurchase of common stock | -451 | -1 | -450 | ' | ' |
Repurchase of common stock (in shares) | ' | -72,000 | ' | ' | ' |
Exercise of stock options (in shares) | ' | 9,390 | ' | ' | ' |
Balance at Dec. 31, 2011 | 86,777 | 103 | 76,310 | 10,046 | 318 |
Balance (in shares) at Dec. 31, 2011 | ' | 10,337,626 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net Income | 15,776 | ' | ' | 15,776 | ' |
Other comprehensive income | 787 | ' | ' | ' | 787 |
Share-based compensation expense | 177 | ' | 177 | ' | ' |
Issuance of common stock | 30,958 | 33 | 30,925 | ' | ' |
Issuance of common stock (in shares) | ' | 3,300,000 | ' | ' | ' |
Repurchase of common stock | -195 | ' | -195 | ' | ' |
Repurchase of common stock (in shares) | ' | -36,640 | ' | ' | ' |
Exercise of stock options | 237 | 1 | 236 | ' | ' |
Exercise of stock options (in shares) | ' | 60,662 | ' | ' | ' |
Balance at Dec. 31, 2012 | 134,517 | 137 | 107,453 | 25,822 | 1,105 |
Balance (in shares) at Dec. 31, 2012 | 13,661,648 | 13,661,648 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net Income | 8,993 | ' | ' | 8,993 | ' |
Other comprehensive income | -4,182 | ' | ' | ' | -4,182 |
Share-based compensation expense | 943 | ' | 943 | ' | ' |
Issuance of common stock | 34,924 | 29 | 34,895 | ' | ' |
Issuance of common stock (in shares) | ' | 2,972,472 | ' | ' | ' |
Repurchase of common stock | -59 | ' | -59 | ' | ' |
Repurchase of common stock (in shares) | ' | -35,005 | ' | ' | ' |
Exercise of stock options | 90 | ' | 90 | ' | ' |
Exercise of stock options (in shares) | ' | 57,164 | ' | ' | ' |
Balance at Dec. 31, 2013 | $175,226 | $166 | $143,322 | $34,815 | ($3,077) |
Balance (in shares) at Dec. 31, 2013 | 16,656,279 | 16,656,279 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income | $8,993 | $15,776 | $10,572 |
Adjustments to net income: | ' | ' | ' |
Depreciation and amortization expense | 1,948 | 1,358 | 1,203 |
Provision for loan losses | 1,860 | 751 | 3,255 |
Share-based compensation expense | 943 | 177 | 208 |
Loss on sale of other real estate owned | 226 | 783 | 783 |
Write down of other real estate owned | 354 | 556 | 172 |
Loss (gain) on sale and disposal of premises and equipment | 13 | -597 | 65 |
Amortization of premium/discounts on securities held for sale, net | 3,052 | 787 | 685 |
Amortization of loan mark-to-market discount | -3,231 | -1,794 | -1,600 |
Gain on sale of investment securities available for sale | -1,544 | -1,953 | -1,589 |
Other-than-temporary impairment loss on investment securities, net | 4 | 159 | 617 |
Recoveries on loans | 377 | 236 | 402 |
Proceeds from the sales of and principal payments from loans held for sale | 534 | 8,582 | ' |
Gain on sale of loans held for sale | ' | -164 | ' |
Purchase and origination of loans held for sale | ' | -12,099 | ' |
(Gain) loss on sale of loans held for investment | -3,228 | -464 | 3,605 |
Gain on FDIC transaction | ' | -5,340 | -4,189 |
Deferred income tax provision (benefit) | -3,750 | 1,560 | 1,244 |
Change in accrued expenses and other liabilities, net | 9,683 | 2,033 | -3,500 |
Income from bank owned life insurance, net | -659 | -508 | -523 |
Change in accrued interest receivable and other assets, net | -71 | 2,330 | 587 |
Net cash provided by operating activities | 15,504 | 12,169 | 11,997 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Proceeds from sale and principal payments on loans held for investment | 220,275 | 204,843 | 139,267 |
Net change in undisbursed loan funds | 260,683 | 47,805 | 15,377 |
Purchase and origination of loans held for investment | -665,339 | -427,823 | -185,896 |
Proceeds from sale of other real estate owned | 1,488 | 12,318 | 14,794 |
Principal payments on securities available for sale | 33,688 | 16,039 | 14,842 |
Purchase of securities available for sale | -101,268 | -96,438 | -84,450 |
Proceeds from sale or maturity of securities available for sale | 234,067 | 114,376 | 123,972 |
Purchases of premises and equipment | -3,581 | -4,525 | -2,822 |
Redemption (purchase) of Federal Reserve Bank stock | -5,948 | ' | 1,167 |
Redemption of Federal Home Loan Bank of San Francisco stock | 2,398 | 2,553 | 1,014 |
Cash acquired in acquisitions | 138,424 | 39,491 | 26,389 |
Net cash (used in) provided by investing activities | 114,887 | -91,361 | 63,654 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Net (decrease) increase in deposit accounts | -139,207 | -39,691 | -35,041 |
Repayment of FHLB advances and other borrowings | ' | ' | -40,000 |
Proceeds from FHLB advances and other borrowings | 71,686 | 87,000 | ' |
Proceeds from issuance of common stock, net of issuance cost | 4,560 | 30,958 | ' |
Proceeds from exercise of stock options | 90 | 237 | 274 |
Warrants purchased and retired | ' | ' | -3,660 |
Repurchase of common stock | -59 | -195 | -451 |
Net cash provided (used in) financing activities | -62,930 | 78,309 | -78,878 |
Net increase (decrease) in cash and cash equivalents | 67,461 | -883 | -3,227 |
Cash and cash equivalents, beginning of year | 59,352 | 60,235 | 63,462 |
Cash and cash equivalents, end of year | 126,813 | 59,352 | 60,235 |
SUPPLEMENTAL CASH FLOW DISCLOSURES | ' | ' | ' |
Interest paid | 5,352 | 7,162 | 9,576 |
Income taxes paid | 9,425 | 8,975 | 4,105 |
Assets acquired (liabilities assumed) in acquisitions (See Note 20): | ' | ' | ' |
Investment securities | 347,196 | 101 | 14,076 |
FRB / FHLB / TIB Stock | 1,765 | 1,390 | ' |
FDIC receivable | ' | 167 | 2,838 |
Loans | 68,815 | 63,773 | 149,739 |
Core deposit intangible | 4,766 | 840 | 2,270 |
Other real estate owned | 752 | 11,533 | 11,953 |
Fixed assets | 1,446 | ' | 42 |
Other assets | 12,468 | 3,656 | 1,599 |
Deposits | -540,725 | -115,582 | -204,678 |
Other borrowings | -16,905 | ' | ' |
Other liabilities | -7,199 | -29 | -39 |
Additional paid-in capital | -29,364 | ' | ' |
NONCASH INVESTING ACTIVITIES DURING THE PERIOD | ' | ' | ' |
Transfers from loans to other real estate owned | $996 | $3,151 | $4,995 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Description of Business and Summary of Significant Accounting Policies | ' |
Description of Business and Summary of Significant Accounting Policies | ' |
1. Description of Business and Summary of Significant Accounting Policies | |
Principles of Consolidation—The consolidated financial statements include the accounts of Pacific Premier Bancorp, Inc. (the ‘‘Corporation’’) and its wholly owned subsidiary, Pacific Premier Bank (the ‘‘Bank’’) (collectively, the ‘‘Company’’). The Company accounts for its investments in its wholly-owned special purpose entity, PPBI Statutory Trust I ( the “Trust”), using the equity method under which the subsidiary’s net earnings are recognized in the Company’s Statement of Income and the investment in the Trust is included in Other Assets on the Company’s Consolidated Statements of Financial Condition. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Description of Business—The Corporation, a Delaware corporation organized in 1997, is a California-based bank holding company that owns 100% of the capital stock of the Bank, the Corporation’s principal operating subsidiary. The Bank was incorporated and commenced operations in 1983. | |
The principal business of the Company is attracting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, primarily in business loans and real estate property loans. At December 31, 2013, the Company had 13 depository branches located in the cities of Encinitas, Huntington Beach, Irvine, Los Alamitos, Newport Beach, Palm Desert (2), Palm Springs (2), San Bernardino, San Diego (2), and Seal Beach. The Company is subject to competition from other financial institutions. The Company is subject to the regulations of certain governmental agencies and undergoes periodic examinations by those regulatory authorities. | |
Basis of Financial Statement Presentation—The accompanying consolidated financial statements have been prepared in conformity with account principles generally accepted in the United States of America (“U.S. GAAP”). In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of financial condition and the results of operations for the reporting periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses (“ALLL”), the valuation of foreclosed real estate, other-than-temporary impairments (“OTTI”) on investment securities available for sale and the deferred tax asset. | |
Cash and Cash Equivalents—Cash and cash equivalents include cash on hand, due from banks and fed funds sold. At December 31, 2013, $38.3 million was allocated to cash reserves required by the Board of Governors of the Federal Reserve System (“Federal Reserve”) for depository institutions based on the amount of deposits held. The Company maintains amounts due from banks that exceed federally insured limits. The Company has not experienced any losses in such accounts. | |
Securities—The Company has established written guidelines and objectives for its investing activities. At the time of purchase, management designates the security as either held to maturity, available for sale or held for trading based on the Company’s investment objectives, operational needs and intent. The investments are monitored to ensure that those activities are consistent with the established guidelines and objectives. | |
Securities Held to Maturity—Investments in debt securities that management has the positive intent and ability to hold to maturity are reported at cost and adjusted for unamortized premiums and unearned discounts that are recognized in interest income using the interest method over the period to maturity. If the cost basis of these securities is determined to be other than temporarily impaired, the amount of the impairment is charged to operations. The Company had no investment securities classified as held to maturity at December 31, 2013 or 2012. | |
Securities Available for Sale—Investments in debt securities that management has no immediate plan to sell, but which may be sold in the future, are valued at fair value. Premiums and discounts are amortized using the interest method over the remaining period to the call date for premiums or contractual maturity for discounts and, in the case of mortgage-backed securities, adjusted for anticipated prepayments. Unrealized holding gains and losses, net of tax, are excluded from earnings and reported as a separate component of stockholders’ equity as accumulated other comprehensive income. If the cost basis of the security is deemed other than temporarily impaired the amount of the impairment is charged to operations. Realized gains and losses on the sales of securities are determined on the specific identification method, recorded on a trade date basis based on the amortized cost basis of the specific security and are included in noninterest income as net gain (loss) on investment securities. | |
Securities Held for Trading—Securities held for trading are carried at fair value. Realized and unrealized gains and losses are reflected in earnings. The Company had no investment securities classified as held for trading at December 31, 2013 or 2012. | |
Impairment of Investments—Declines in the fair value of individual held to maturity and available for sale securities below their cost that are OTTI result in write-downs of the individual securities to their fair value. The related write-downs are included in operations as realized losses in the category of other-than-temporary impairment loss on investment securities, net. In estimating OTTI losses, management considers: (i) the length of time and the extent to which the market value has been less than cost; (ii) the financial condition and near-term prospects of the issuer; (iii) the intent and ability of the Company to retain its investment in a security for a period of time sufficient to allow for any anticipated recovery in market value; and (iv) general market conditions which reflect prospects for the economy as a whole, including interest rates and sector credit spreads. | |
Loans Held for Sale—The Company identifies at origination those loans which foreseeably may be sold prior to maturity as loans held for sale and records them at the lower of amortized cost or fair value. Premiums paid and discounts obtained on such loans are deferred as an adjustment to the carrying value of the loans until the loans are sold. Interest is recognized as revenue when earned according to the terms of the loans and when, in the opinion of management, it is collectible. Loans are evaluated for collectability, and if appropriate, previously accrued interest is reversed. The Company may sell loans which had been held for investment. In such occurrences, the loans are transferred to the held for sale portfolio at the lower of amortized cost or fair value. If any part of a decline in value of the loans transferred is due to credit deterioration, that decline is recorded as a charge-off to the ALLL at the time of transfer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the basis of the loans sold. | |
Loans Held for Investment—Loans held for investment are carried at amortized cost, net of discounts and premiums, deferred loan origination fees and costs and ALLL. Net deferred loan origination fees and costs on loans are amortized or accreted using the interest method over the expected life of the loans. Amortization of deferred loan fees and costs are discontinued for loans placed on nonaccrual. Any remaining deferred fees or costs and prepayment fees associated with loans that payoff prior to contractual maturity are included in loan interest income in the period of payoff. Loan commitment fees received to originate or purchase a loan are deferred and, if the commitment is exercised, recognized over the life of the loan as an adjustment of yield or, if the commitment expires unexercised, recognized as income upon expiration of the commitment. Loans held for investment are not adjusted to the lower of cost or estimated market value because it is management’s intention, and the Company has the ability, to hold these loans to maturity. | |
Interest on loans is credited to income as earned. Interest receivable is accrued only if deemed collectible. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when principal or interest is past due 90 days based on contractual terms of the loan or when, in the opinion of management, there is reasonable doubt as to collection of interest. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are applied as a reduction to the loan principal balance. Interest accruals are resumed on such loans only when they are brought current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to all principal and interest. | |
A loan is considered to be impaired when it is probable that the Company will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Measurement of impairment is based on the loan’s expected future cash flows discounted at the loan’s effective interest rate, measured by reference to an observable market value, if one exists, or the fair value of the collateral if the loan is deemed collateral dependent. The Company selects the measurement method on a loan-by-loan basis except those loans deemed collateral dependent. All loans are generally charged-off at such time the loan is classified as a loss. | |
Allowance for Loan Losses—The Company maintains an ALLL at a level deemed appropriate by management to provide for known or inherent risks in the portfolio at the consolidated statements of financial condition date. The Company has implemented and adheres to an internal asset review system and loss allowance methodology designed to provide for the detection of problem assets and an adequate allowance to cover loan losses. Management’s determination of the adequacy of the loan loss allowance is based on an evaluation of the composition of the portfolio, actual loss experience, industry charge-off experience on income property loans, current economic conditions, and other relevant factors in the area in which the Company’s lending and real estate activities are based. These factors may affect the borrowers’ ability to pay and the value of the underlying collateral. The allowance is calculated by applying loss factors to loans held for investment according to loan program type and loan classification. The loss factors are established based primarily upon the Bank’s historical loss experience and the industry charge-off experience and are evaluated on a quarterly basis. Various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. In the opinion of management, and in accordance with the credit loss allowance methodology, the present allowance is considered adequate to absorb estimable and probable credit losses. Additions and reductions to the allowance are reflected in current operations. Charge-offs to the allowance are made when specific assets are considered uncollectible or are transferred to other real estate owned and the fair value of the property is less than the loan’s recorded investment. Recoveries are credited to the allowance. | |
Although management uses the best information available to make these estimates, future adjustments to the allowance may be necessary due to economic, operating, regulatory and other conditions that may be beyond the Company’s control. | |
Other Real Estate Owned—The Company obtains an appraisal and/or market valuation on all other real estate owned at the time of possession. Real estate properties acquired through, or in lieu of, loan foreclosure are recorded at fair value less cost to sell with any excess loan balance charged against the allowance for estimated loan losses. After foreclosure, valuations are periodically performed by management. Any subsequent fair value losses are recorded to other real estate owned operations with a corresponding write-down to the asset. All legal fees and direct costs, including foreclosure and other related costs are expensed as incurred. Revenue and expenses from continued operations are included in other real estate owned operations in the consolidated statement of income. | |
Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which range from forty years for buildings, seven years for furniture, fixtures and equipment, and three years for computer and telecommunication equipment. The cost of leasehold improvements is amortized using the straight-line method over the shorter of the estimated useful life of the asset or the term of the related leases. | |
The Company periodically evaluates the recoverability of long-lived assets, such as premises and equipment, to ensure the carrying value has not been impaired. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | |
Securities Sold Under Agreements to Repurchase—The Company enters into sales of securities under agreement to repurchase. These agreements are treated as financing arrangements and, accordingly, the obligations to repurchase the securities sold are reflected as liabilities in the Company’s consolidated financial statements. The securities collateralizing these agreements are delivered to several major national brokerage firms who arranged the transactions. The securities are reflected as assets in the Company’s consolidated financial statements. The brokerage firms may loan such securities to other parties in the normal course of their operations and agree to return the identical security to the Company at the maturity of the agreements. | |
Subordinated Debentures—Long-term borrowings are carried at cost, adjusted for amortization of premiums and accretion of discounts which are recognized in interest expense using the interest method. Debt issuance costs are recognized in interest expense using the interest method over the life of the instrument. | |
Income Taxes—Deferred tax assets and liabilities are recorded for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the asset liability method. In estimating future tax consequences, all expected future events other than enactments of changes in the tax law or rates are considered. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are to be recognized for temporary differences that will result in deductible amounts in future years and for tax carryforwards if, in the opinion of management, it is more likely than not that the deferred tax assets will be realized. At December 31, 2013, there was no valuation allowance deemed necessary against the Company’s deferred tax asset. | |
Bank Owned Life Insurance—Bank owned life insurance is accounted for using the cash surrender value method and is recorded at its realizable value. The change in the net asset value is included in other assets and other noninterest income. | |
Comprehensive Income—Comprehensive income is reported in addition to net income for all periods presented. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income (loss) that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company’s available-for-sale investment securities are required to be included in other comprehensive income or loss. Total comprehensive income (loss) and the components of accumulated other comprehensive income or loss are presented in the Consolidated Statement of Stockholders’ Equity and Consolidated Statement of Comprehensive Income. | |
Share-Based Compensation—The Company recognizes in the income statement the grant-date fair value of stock options and other equity-based forms of compensation issued to employees over the employees’ requisite service period (generally the vesting period). | |
Recent Accounting Pronouncements | |
During 2013, the following accounting guidance relevant to the Company has been issued by the Financial Accounting Standards Board (the “FASB”), and/or became effective. | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 affects all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information is intended to enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. The amended guidance is effective for interim and annual periods beginning after January 1, 2013 and should be applied retrospectively to all periods presented. The adoption of the disclosure requirements had no impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The adoption of the disclosure requirements had no impact on the Company’s consolidated financial statements. | |
Reclassifications —Certain amounts reflected in the 2012 and 2011 consolidated financial statements have been reclassified where practicable, to conform to the presentation for 2013. These classifications are of a normal recurring nature. | |
Regulatory_Capital_Requirement
Regulatory Capital Requirements and Other Regulatory Matters | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Regulatory Capital Requirements and Other Regulatory Matters | ' | ||||||||||||||||
Regulatory Capital Requirements and Other Regulatory Matters | ' | ||||||||||||||||
2. Regulatory Capital Requirements and Other Regulatory Matters | |||||||||||||||||
The Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain capital in order to meet certain capital ratios to be considered adequately capitalized or well capitalized under the regulatory framework for prompt corrective action. As of the most recent formal notification from the Federal Reserve, the Bank was categorized as “well capitalized.” There are no conditions or events since that notification that management believes have changed the Bank’s categorization. As defined in applicable regulations and set forth in the table below, at December 31, 2013, the Bank continues to exceed the “well capitalized” standards for Tier 1 capital to adjusted tangible assets of 5.00%, Tier 1 risk-based capital to risk-weighted assets of 6.00% and total capital to risk-weighted assets of 10.00%. | |||||||||||||||||
The Company’s and Bank’s actual capital amounts and ratios for the periods presented are set forth in the table below: | |||||||||||||||||
Actual | Minimum Required for | Required to be Well | |||||||||||||||
Capital Adequacy Purposes | Capitalized Under Prompt | ||||||||||||||||
Corrective Action | |||||||||||||||||
Regulations | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(dollars in thousands) | |||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Tier 1 Capital (to adjusted tangible assets) | |||||||||||||||||
Bank | $ | 160,473 | 10.03 | % | $ | 64,025 | 4 | % | $ | 80,031 | 5 | % | |||||
Consolidated | 163,105 | 10.29 | % | 63,431 | 4 | % | N/A | N/A | |||||||||
Tier 1 Risk-Based Capital (to risk-weighted assets) | |||||||||||||||||
Bank | 160,473 | 12.34 | % | 52,021 | 4 | % | 78,031 | 6 | % | ||||||||
Consolidated | 163,105 | 12.54 | % | 52,046 | 4 | % | N/A | N/A | |||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||
Bank | 168,673 | 12.97 | % | 104,042 | 8 | % | 130,052 | 10 | % | ||||||||
Consolidated | 171,305 | 13.17 | % | 104,092 | 8 | % | N/A | N/A | |||||||||
At December 31, 2012 | |||||||||||||||||
Tier 1 Capital (to adjusted tangible assets) | |||||||||||||||||
Bank | $ | 129,055 | 12.07 | % | $ | 42,773 | 4 | % | $ | 53,466 | 5 | % | |||||
Consolidated | 135,883 | 12.71 | % | 42,771 | 4 | % | N/A | N/A | |||||||||
Tier 1 Risk-Based Capital (to risk-weighted assets) | |||||||||||||||||
Bank | 129,055 | 12.99 | % | 39,750 | 4 | % | 59,625 | 6 | % | ||||||||
Consolidated | 135,883 | 13.61 | % | 39,924 | 4 | % | N/A | N/A | |||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||
Bank | 137,049 | 13.79 | % | 79,500 | 8 | % | 99,375 | 10 | % | ||||||||
Consolidated | 144,004 | 14.43 | % | 79,848 | 8 | % | N/A | N/A | |||||||||
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
3. Investment Securities | ||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of securities were as follows: | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 73 | $ | 8 | $ | — | $ | 81 | ||||||||||||||||||||||||
Municipal bonds | 95,388 | 589 | (1,850 | ) | 94,127 | |||||||||||||||||||||||||||
Mortgage-backed securities | 165,857 | 12 | (3,988 | ) | 161,881 | |||||||||||||||||||||||||||
Total securities available for sale | 261,318 | 609 | (5,838 | ) | 256,089 | |||||||||||||||||||||||||||
FHLB stock | 7,483 | — | — | 7,483 | ||||||||||||||||||||||||||||
Federal Reserve Bank stock/TIB | 7,967 | — | — | 7,967 | ||||||||||||||||||||||||||||
Total equities held at cost | 15,450 | — | — | 15,450 | ||||||||||||||||||||||||||||
Total securities | $ | 276,768 | $ | 609 | $ | (5,838 | ) | $ | 271,539 | |||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 147 | $ | 12 | $ | — | $ | 159 | ||||||||||||||||||||||||
Municipal bonds | 25,401 | 1,186 | (1 | ) | 26,586 | |||||||||||||||||||||||||||
Mortgage-backed securities | 56,641 | 1,162 | (482 | ) | 57,321 | |||||||||||||||||||||||||||
Total securities available for sale | 82,189 | 2,360 | (483 | ) | 84,066 | |||||||||||||||||||||||||||
FHLB stock | 9,228 | — | — | 9,228 | ||||||||||||||||||||||||||||
Federal Reserve Bank stock | 2,019 | — | — | 2,019 | ||||||||||||||||||||||||||||
Total equities held at cost | 11,247 | — | — | 11,247 | ||||||||||||||||||||||||||||
Total securities | $ | 93,436 | $ | 2,360 | $ | (483 | ) | $ | 95,313 | |||||||||||||||||||||||
At December 31, 2013, the Company had a $7.5 million investment in FHLB stock carried at cost. During the years ended December 31, 2012 and 2013, the FHLB has repurchased $4.3 million of the Company’s excess FHLB stock through their stock repurchase program. | ||||||||||||||||||||||||||||||||
At December 31, 2013, mortgage-backed securities (“MBS”) with an estimated par value of $34.0 million and a fair value of $34.9 million were pledged as collateral for the Bank’s three inverse putable reverse repurchases totaling $28.5 million. | ||||||||||||||||||||||||||||||||
The Company reviewed individual securities classified as available-for-sale to determine whether a decline in fair value below the amortized cost basis is other-than-temporary. If it is probable that the Company will be unable to collect all amounts due according to contractual terms of the debt security not impaired at acquisition, an OTTI shall be considered to have occurred. If an OTTI occurs, the cost basis of the security will be written down to its fair value as the new cost basis and the write down accounted for as a realized loss. There were no securities with OTTI at December 31, 2013. The Company realized OTTI losses of $4,000 in 2013, $159,000 in 2012 and $617,000 in 2011. | ||||||||||||||||||||||||||||||||
The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous loss position. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 133 | $ | 61,524 | $ | (1,850 | ) | — | $ | — | $ | — | 133 | $ | 61,524 | $ | (1,850 | ) | |||||||||||||||
Mortgage-backed securities | 45 | 140,704 | (3,075 | ) | 1 | 12,607 | (913 | ) | 46 | 153,311 | (3,988 | ) | ||||||||||||||||||||
Total | 178 | $ | 202,228 | $ | (4,925 | ) | 1 | $ | 12,607 | $ | (913 | ) | 179 | $ | 214,835 | $ | (5,838 | ) | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 1 | $ | 292 | $ | (1 | ) | — | $ | — | $ | — | 1 | $ | 292 | $ | (1 | ) | |||||||||||||||
Mortgage-backed securities | 2 | 15,128 | (152 | ) | 31 | 1,012 | (330 | ) | 33 | 16,140 | (482 | ) | ||||||||||||||||||||
Total | 3 | $ | 15,420 | $ | (153 | ) | 31 | $ | 1,012 | $ | (330 | ) | 34 | $ | 16,432 | $ | (483 | ) | ||||||||||||||
The amortized cost and estimated fair value of investment securities available for sale at December 31, 2013, by contractual maturity are shown in the table below. | ||||||||||||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||||||||
One Year | More than One | More than Five Years | More than | |||||||||||||||||||||||||||||
or Less | Year to Five Years | to Ten Years | Ten Years | Total | ||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | 73 | $ | 81 | $ | — | $ | — | $ | — | $ | — | $ | 73 | $ | 81 | ||||||||||||
Municipal bonds | — | — | 9,940 | 9,909 | 43,685 | 43,173 | 41,763 | 41,045 | 95,388 | 94,127 | ||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | 13,390 | 13,235 | 152,467 | 148,646 | 165,857 | 161,881 | ||||||||||||||||||||||
Total investment securities available for sale | — | — | 10,013 | 9,990 | 57,075 | 56,408 | 194,230 | 189,691 | 261,318 | 256,089 | ||||||||||||||||||||||
Stock: | ||||||||||||||||||||||||||||||||
FHLB | 7,483 | 7,483 | — | — | — | — | — | — | 7,483 | 7,483 | ||||||||||||||||||||||
Federal Reserve Bank/TIB | 7,967 | 7,967 | — | — | — | — | — | — | 7,967 | 7,967 | ||||||||||||||||||||||
Total stock | 15,450 | 15,450 | — | — | — | — | — | — | 15,450 | 15,450 | ||||||||||||||||||||||
Total securities | $ | 15,450 | $ | 15,450 | $ | 10,013 | $ | 9,990 | $ | 57,075 | $ | 56,408 | $ | 194,230 | $ | 189,691 | $ | 276,768 | $ | 271,539 | ||||||||||||
The temporary impairment in both years is a result of the change in market interest rates and not the underlying issuers’ ability to repay. The Company has the intent and ability to hold these securities until the temporary impairment is eliminated. Accordingly, the Company has not recognized the temporary impairment in earnings of either year. | ||||||||||||||||||||||||||||||||
Unrealized gains and losses on investment securities available for sale are recognized in stockholders’ equity as accumulated other comprehensive income (loss). At December 31, 2013, the Company had accumulated other comprehensive (loss) of $5.2 million, or $3.1 million net of tax, compared to accumulated other comprehensive income of $1.9 million or $1.1 million net of tax, at December 31, 2012. | ||||||||||||||||||||||||||||||||
Loans_Held_for_Investment
Loans Held for Investment | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Loans Held for Investment | ' | ||||||||||||||||||||||
Loans Held for Investment | ' | ||||||||||||||||||||||
4. Loans Held for Investment | |||||||||||||||||||||||
Loans held for investment consisted of the following at December 31: | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 187,035 | $ | 115,354 | |||||||||||||||||||
Commercial owner occupied | 221,089 | 150,934 | |||||||||||||||||||||
SBA | 10,659 | 6,882 | |||||||||||||||||||||
Warehouse facilities | 87,517 | 195,761 | |||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 333,544 | 253,409 | |||||||||||||||||||||
Multi-family | 233,689 | 156,424 | |||||||||||||||||||||
One-to-four family | 145,235 | 97,463 | |||||||||||||||||||||
Construction | 13,040 | — | |||||||||||||||||||||
Land | 7,605 | 8,774 | |||||||||||||||||||||
Other loans | 3,839 | 1,193 | |||||||||||||||||||||
Total gross loans | 1,243,252 | 986,194 | |||||||||||||||||||||
Plus (less): | |||||||||||||||||||||||
Loans held for sale | (3,147 | ) | (3,681 | ) | |||||||||||||||||||
Deferred loan origination fees-net | 18 | (306 | ) | ||||||||||||||||||||
Allowance for estimated loan losses | (8,200 | ) | (7,994 | ) | |||||||||||||||||||
Loans held for investment, net | $ | 1,231,923 | $ | 974,213 | |||||||||||||||||||
From time to time, the Company may purchase or sell loans in order to manage concentrations, maximize interest income, change risk profiles, improve returns and generate liquidity. | |||||||||||||||||||||||
The Company grants residential and commercial loans held for investment to customers located primarily in California. Consequently, the underlying collateral for the Company’s loans and a borrower’s ability to repay may be impacted unfavorably by adverse changes in the economy and real estate market in the region. | |||||||||||||||||||||||
Under applicable laws and regulations, the Bank may not make secured loans to one borrower in excess of 25% of unimpaired capital plus surplus and likewise in excess of 15% for unsecured loans. These loans-to-one-borrower limitations result in a dollar limitation of $46.8 million for secured loans and $28.1 million for unsecured loans at December 31, 2013. At December 31, 2013, the Bank’s largest aggregate outstanding balance of loans-to-one borrower was $34.7 million of secured credit. | |||||||||||||||||||||||
Loans serviced for others are not included in the accompanying consolidated statements of financial condition. The unpaid principal balance of loans and participations serviced for others were $43.8 million at December 31, 2013 and $25.8 million at December 31, 2012. | |||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||
The Company’s loan portfolio was collateralized by various forms of real estate and business assets located principally in California. The Company’s loan portfolio contains concentrations of credit in commercial non-owner occupied real estate, multi-family real estate and commercial owner occupied business loans. The Company maintains policies approved by the Board of Directors that address these concentrations and continues to diversify its loan portfolio through loan originations and purchases and sales of loans to meet approved concentration levels. While management believes that the collateral presently securing these loans is adequate, there can be no assurances that further significant deterioration in the California real estate market and economy would not expose the Company to significantly greater credit risk. | |||||||||||||||||||||||
Purchased Credit Impaired Loans | |||||||||||||||||||||||
The Company acquired purchased loans as part of its acquisitions of Canyon National Bank in 2011 and Palm Desert National Bank in 2012 from the FDIC for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at the time of acquisition, that all contractually required payments would not be collected. The carrying amount of those loans at December 31, 2013, 2012 and 2011 was as follows: | |||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 80 | $ | 308 | $ | 117 | |||||||||||||||||
Commercial owner occupied | 870 | 1,221 | 1,930 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,009 | 2,447 | 3,297 | ||||||||||||||||||||
One-to-four family | 18 | 30 | 1,092 | ||||||||||||||||||||
Land | — | 2,313 | 52 | ||||||||||||||||||||
Total purchase credit impaired | $ | 1,977 | $ | 6,319 | $ | 6,488 | |||||||||||||||||
The following table summarizes the accretable yield on the purchased credit impaired for the nine months ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at the beginning of period | $ | 2,276 | $ | 3,248 | $ | — | |||||||||||||||||
Accretable yield at acquisition | — | 3,908 | 4,692 | ||||||||||||||||||||
Accretion | (557 | ) | (4,846 | ) | (521 | ) | |||||||||||||||||
Disposals and other | (648 | ) | (66 | ) | (1,464 | ) | |||||||||||||||||
Change in accretable yield | 605 | 32 | 541 | ||||||||||||||||||||
Balance at the end of period | $ | 1,676 | $ | 2,276 | $ | 3,248 | |||||||||||||||||
Impaired Loans | |||||||||||||||||||||||
The following tables provide a summary of the Company’s investment in impaired loans as of and for the periods indicated: | |||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||
Recorded | Unpaid | With Specific | Without Specific | Specific | Average | Interest | |||||||||||||||||
Investment | Principal | Allowance | Allowance | Allowance for Impaired | Recorded | Income | |||||||||||||||||
Balance | Loans | Investment | Recognized | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 255 | $ | 17 | |||||||||
Commercial owner occupied | 747 | 872 | — | 747 | — | 177 | 66 | ||||||||||||||||
SBA | 14 | 246 | — | 14 | — | 70 | 28 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 983 | 1,202 | 28 | 955 | 1 | 984 | 68 | ||||||||||||||||
Multi-family | — | — | — | — | — | 108 | 2 | ||||||||||||||||
One-to-four family | 683 | 746 | 278 | 405 | 104 | 743 | 44 | ||||||||||||||||
Totals | $ | 2,427 | $ | 3,066 | $ | 306 | $ | 2,121 | $ | 105 | $ | 2,337 | $ | 225 | |||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 593 | $ | 707 | $ | 287 | $ | 306 | $ | 270 | $ | 203 | $ | 29 | |||||||||
Commercial owner occupied | — | — | — | — | — | 444 | — | ||||||||||||||||
SBA | 259 | 810 | — | 259 | — | 468 | 21 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 670 | 746 | — | 670 | — | 1,031 | 59 | ||||||||||||||||
Multi-family | 266 | 315 | — | 266 | — | 1,123 | 22 | ||||||||||||||||
One-to-four family | 948 | 960 | 541 | 407 | 395 | 720 | 59 | ||||||||||||||||
Totals | $ | 2,736 | $ | 3,538 | $ | 828 | $ | 1,908 | $ | 665 | $ | 3,989 | $ | 190 | |||||||||
December 31, 2011 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 1,138 | $ | 1,321 | $ | — | $ | 1,138 | $ | — | $ | 373 | $ | 62 | |||||||||
Commercial owner occupied | 1,641 | 1,771 | — | 1,641 | — | 1,635 | 64 | ||||||||||||||||
SBA | 773 | 2,427 | — | 773 | — | 887 | 68 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,495 | 1,592 | — | 1,495 | — | 2,283 | 198 | ||||||||||||||||
Multi-family | 1,423 | 1,450 | — | 1,423 | — | 2,309 | 88 | ||||||||||||||||
One-to-four family | 521 | 705 | — | 521 | — | 311 | 47 | ||||||||||||||||
Land | — | — | — | — | — | 11 | 1 | ||||||||||||||||
Other loans | — | — | — | — | — | 2 | — | ||||||||||||||||
Totals | $ | 6,991 | $ | 9,266 | $ | — | $ | 6,991 | $ | — | $ | 7,811 | $ | 528 | |||||||||
The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or it is determined that the likelihood of the Company receiving all scheduled payments, including interest, when due is remote. The Company has no commitments to lend additional funds to debtors whose loans have been impaired. | |||||||||||||||||||||||
The Company reviews loans for impairment when the loan is classified as substandard or worse, delinquent 90 days, determined by management to be collateral dependent, or when the borrower files bankruptcy or is granted a troubled debt restructure. Measurement of impairment is based on the loan’s expected future cash flows discounted at the loan’s effective interest rate, measured by reference to an observable market value, if one exists, or the fair value of the collateral if the loan is deemed collateral dependent. All loans are generally charged-off at the time that the loan is classified as a loss. Valuation allowances are determined on a loan-by-loan basis or by aggregating loans with similar risk characteristics. | |||||||||||||||||||||||
When loans are placed on nonaccrual status all accrued interest is reversed from earnings. Payments received on nonaccrual loans are generally applied as a reduction to the loan principal balance. If the likelihood of further loss is remote, the Company will recognize interest on a cash basis only. Loans may be returned to accruing status if the Company believes that all remaining principal and interest is fully collectible and there has been at least six months of sustained repayment performance since the loan was placed on nonaccrual. | |||||||||||||||||||||||
The Company does not accrue interest on loans 90 days or more past due or when, in the opinion of management, there is reasonable doubt as to the collection of interest. The Company had loans on nonaccrual status of $2.3 million, $2.2 million and $6.1 million at December 31, 2013, 2012 and 2011, respectively. If such loans had been performing in accordance with their original terms, the Company would have recorded additional loan interest income of $154,000 in 2013, $405,000 in 2012, and $413,000 in 2011. The Company did not record income from the receipt of cash payments related to nonaccruing loans during the years ended December 31, 2013, 2012 and 2011. The Company had no loans 90 day or more past due and still accruing at December 31, 2013 or 2012. The Company has less than $99,000 in troubled debt restructures at December 31, 2013. | |||||||||||||||||||||||
Credit Quality and Credit Risk | |||||||||||||||||||||||
The Company’s credit quality is maintained and credit risk managed in two distinct areas. The first is the loan origination process, wherein the Bank underwrites credit quality and chooses which risks it is willing to accept. The second is in the ongoing oversight of the loan portfolio, where existing credit risk is measured and monitored, and where performance issues are dealt with in a timely and comprehensive fashion. | |||||||||||||||||||||||
The Company maintains a comprehensive credit policy which sets forth minimum and maximum tolerances for key elements of loan risk. The policy identifies and sets forth specific guidelines for analyzing each of the loan products the Company offers from both an individual and portfolio wide basis. The credit policy is reviewed no less than annually by the Board of Directors. Seasoned underwriters ensure all key risk factors are analyzed with most loan underwriting including a comprehensive global cash flow analysis. The credit approval process mandates multiple-signature approval by either the management or Board credit committee for every loan which requires any subjective credit analysis. | |||||||||||||||||||||||
Credit risk is managed within the loan portfolio by the Company’s Portfolio Management department based on a comprehensive credit and investment review policy. This policy requires a program of financial data collection and analysis, comprehensive loan reviews, property and/or business inspections and monitoring of portfolio concentrations and trends. The Portfolio Management department also monitors asset-based lines of credit, loan covenants and other conditions associated with the Company’s business loans to help ensure that the protections built into the loan approvals serve as the early warning and risk mitigation mechanisms. Individual loans, excluding the homogeneous loan portfolio, are reviewed at least biennially, or more frequently, if deemed necessary, and includes the assignment of a risk grade. | |||||||||||||||||||||||
Risk grades are based on a six-grade Pass scale, along with Special Mention, Substandard, Doubtful and Loss classifications as such classifications are defined by the federal banking regulatory agencies. The assignment of risk grades allows the Company to, among other things, identify the risk associated with each credit in the portfolio, and to provide a basis for estimating credit losses inherent in the portfolio. Risk grades are reviewed regularly by the Company’s Credit and Investment Review committee, and are scrutinized by annual independent loan reviews performed by a third-party, as well as by regulatory agencies during scheduled examinations. | |||||||||||||||||||||||
The following provides brief definitions for risk grades assigned to loans in the portfolio: | |||||||||||||||||||||||
· Pass – Pass credits are well protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Such credits exhibit few weaknesses, if any, but may include credits with exposure to certain factors that may adversely impact the credit if they materialize. The Company has established six subcategories within the pass grade to stratify risk associated with pass loans. The Company maintains a subset of pass credits designated as “watch” loans which, for any of a variety of reasons, require the Company’s closer attention. Watch credits are more heavily scrutinized than other pass credits so that any potential weaknesses that may develop in such credits are more quickly identified, thereby serving to mitigate potential losses. | |||||||||||||||||||||||
· Special Mention – Loans graded special mention exhibit potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the institution’s credit position. Special mention credits are not considered as part of the classified extensions of credit category and do not expose the Company to sufficient risk to warrant classification. | |||||||||||||||||||||||
· Substandard – Substandard credits are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Extensions of credit so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. (The term “liquidation” as used here refers to the orderly repayment of the debt and not to a forced sale of the loan or its underlying collateral.) They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard credits, does not have to exist in individual extensions of credit classified substandard. | |||||||||||||||||||||||
· Doubtful – Doubtful credits have all the weaknesses inherent in substandard credits, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage of and strengthen the credit, its classification as an estimated loss is deferred until its more exact status may be determined. | |||||||||||||||||||||||
· Loss – Loss assets are those that are considered uncollectible and of such little value that their continuance as assets is not warranted. Amounts classified as loss are promptly charged off. | |||||||||||||||||||||||
The Portfolio Management department also manages loan performance risks, handling collections, workouts, bankruptcies and foreclosures. These risks are controlled by moving quickly and assertively when problems are identified. Collection efforts are immediate upon non-payment, and the portfolio managers seek to determine right away the appropriate steps to minimize the Company’s risk of loss. When foreclosure will maximize the Company’s recovery for a non-performing loan, the portfolio managers will prosecute the foreclosure process, including any associated judicial legal actions. When appropriate, the Company’s in-house counsel or outside legal advisors are consulted to ensure that legal risks are appropriately addressed in handling loan performance issues. | |||||||||||||||||||||||
When a loan is graded as watch or worse, the Company obtains an updated valuation of the underlying collateral. If the credit in question is also identified as impaired, a valuation allowance, if necessary, is established against such loan or a loss is recognized by a charge to the ALLL if management believes that the full amount of the Company’s recorded investment in the loan is no longer collectable. The Company typically continues to obtain updated valuations of underlying collateral for watch, special mention and classified loans on an annual or biennial basis in order to have the most current indication of fair value. Once a loan is identified as impaired, an analysis of the underlying collateral is performed at least quarterly, and corresponding changes in any related valuation allowance are made or balances deemed to be fully uncollectable are charged-off. | |||||||||||||||||||||||
The following tables stratify the loan portfolio by the Company’s internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio as of the periods indicated: | |||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
December 31, 2013 | (in thousands) | ||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 184,247 | $ | 12 | $ | 2,776 | $ | 187,035 | |||||||||||||||
Commercial owner occupied | 207,872 | 1,217 | 12,000 | 221,089 | |||||||||||||||||||
SBA | 10,659 | — | — | 10,659 | |||||||||||||||||||
Warehouse facilities | 87,517 | — | — | 87,517 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 329,538 | 352 | 3,654 | 333,544 | |||||||||||||||||||
Multi-family | 232,661 | 511 | 517 | 233,689 | |||||||||||||||||||
One-to-four family | 144,152 | — | 1,083 | 145,235 | |||||||||||||||||||
Construction | 13,040 | — | — | 13,040 | |||||||||||||||||||
Land | 7,605 | — | — | 7,605 | |||||||||||||||||||
Other loans | 3,834 | — | 5 | 3,839 | |||||||||||||||||||
Totals | $ | 1,221,125 | $ | 2,092 | $ | 20,035 | $ | 1,243,252 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
December 31, 2012 | (in thousands) | ||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 111,895 | $ | 92 | $ | 3,367 | $ | 115,354 | |||||||||||||||
Commercial owner occupied | 136,330 | 2,674 | 11,930 | 150,934 | |||||||||||||||||||
SBA | 6,819 | — | 63 | 6,882 | |||||||||||||||||||
Warehouse facilities | 195,761 | — | — | 195,761 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 240,585 | 687 | 12,137 | 253,409 | |||||||||||||||||||
Multi-family | 143,003 | 11,583 | 1,838 | 156,424 | |||||||||||||||||||
One-to-four family | 96,061 | — | 1,402 | 97,463 | |||||||||||||||||||
Land | 8,762 | — | 12 | 8,774 | |||||||||||||||||||
Other loans | 1,177 | — | 16 | 1,193 | |||||||||||||||||||
Totals | $ | 940,393 | $ | 15,036 | $ | 30,765 | $ | 986,194 | |||||||||||||||
Days Past Due | |||||||||||||||||||||||
Non- | |||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
December 31, 2013 | (in thousands) | ||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 187,035 | $ | — | $ | — | $ | — | $ | 187,035 | $ | — | |||||||||||
Commercial owner occupied | 219,875 | 768 | — | 446 | 221,089 | 747 | |||||||||||||||||
SBA | 10,645 | — | — | 14 | 10,659 | 14 | |||||||||||||||||
Warehouse facilities | 87,517 | — | — | — | 87,517 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 332,984 | — | — | 560 | 333,544 | 983 | |||||||||||||||||
Multi-family | 233,689 | — | — | — | 233,689 | — | |||||||||||||||||
One-to-four family | 145,041 | 71 | — | 123 | 145,235 | 507 | |||||||||||||||||
Construction | 13,040 | — | — | — | 13,040 | — | |||||||||||||||||
Land | 7,605 | — | — | — | 7,605 | — | |||||||||||||||||
Other loans | 3,709 | 130 | — | — | 3,839 | — | |||||||||||||||||
Totals | $ | 1,241,140 | $ | 969 | $ | — | $ | 1,143 | $ | 1,243,252 | $ | 2,251 | |||||||||||
Days Past Due | |||||||||||||||||||||||
Non- | |||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 115,078 | $ | — | $ | 58 | $ | 218 | $ | 115,354 | $ | 347 | |||||||||||
Commercial owner occupied | 150,689 | — | 245 | — | 150,934 | 14 | |||||||||||||||||
SBA | 6,697 | — | — | 185 | 6,882 | 259 | |||||||||||||||||
Warehouse facilities | 195,761 | — | — | — | 195,761 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 253,409 | — | — | — | 253,409 | 670 | |||||||||||||||||
Multi-family | 156,424 | — | — | — | 156,424 | 266 | |||||||||||||||||
One-to-four family | 97,283 | 101 | — | 79 | 97,463 | 522 | |||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||
Land | 8,774 | — | — | — | 8,774 | 127 | |||||||||||||||||
Other loans | 1,188 | 5 | — | — | 1,193 | — | |||||||||||||||||
Totals | $ | 985,303 | $ | 106 | $ | 303 | $ | 482 | $ | 986,194 | $ | 2,205 | |||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||
5. Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||
The Company’s ALLL covers estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated credit losses inherent in the remainder of the loan portfolio. The ALLL is prepared using the information provided by the Company’s credit and investment review process along with data from peer institutions and economic information gathered from published sources. | |||||||||||||||||||||||||||||||||||
The loan portfolio is segmented into groups of loans with similar risk characteristics. Each segment possesses varying degrees of risk based on, among other things, the type of loan, the type of collateral, and the sensitivity of the borrower or industry to changes in external factors such as economic conditions. An estimated loss rate calculated using the Company’s actual historical loss rates adjusted for current portfolio trends, economic conditions, and other relevant internal and external factors, is applied to each group’s aggregate loan balances. | |||||||||||||||||||||||||||||||||||
The following provides a summary of the ALLL calculation for the major segments within the Company’s loan portfolio. | |||||||||||||||||||||||||||||||||||
Commercial Business Loans, Owner-Occupied Commercial Real Estate Loans, and SBA Loans | |||||||||||||||||||||||||||||||||||
The Company’s base ALLL factor for commercial business loans, owner-occupied commercial real estate loans and SBA loans is determined by management using the Bank’s actual trailing thirty-six month, trailing twenty-four month, trailing twelve month and annualized trailing six month charge-off data. Adjustments to those base factors are made for relevant internal and external factors. For owner occupied commercial real estate loans, commercial business loans and SBA loans, those factors include: | |||||||||||||||||||||||||||||||||||
· Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment, | |||||||||||||||||||||||||||||||||||
· Changes in the nature and volume of the loan portfolio, including new types of lending, | |||||||||||||||||||||||||||||||||||
· Changes in volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans, and | |||||||||||||||||||||||||||||||||||
· The existence and effect of concentrations of credit, and changes in the level of such concentrations. | |||||||||||||||||||||||||||||||||||
The resulting total ALLL factor is compared for reasonableness against the 10-year average, 15-year average, and trailing twelve month total charge-off data for all FDIC insured commercial banks and savings institutions based in California. This factor is applied to balances graded pass-1 through pass-5. For loans risk graded as watch or worse, progressively higher potential loss factors are applied based on management’s judgment, taking into consideration the specific characteristics of the Bank’s portfolio and analysis of results from a select group of the Company’s peers. | |||||||||||||||||||||||||||||||||||
Non-Owner Occupied Commercial Real Estate, Multi-Family, Land and Construction Loans | |||||||||||||||||||||||||||||||||||
The Company’s base ALLL factor for multi-family and non-owner occupied commercial real estate loans is determined by management using the Bank’s actual trailing thirty-six month, trailing twenty-four month, trailing twelve month and annualized trailing six month charge-off data. Adjustments to those base factors are made for relevant internal and external factors. For multi-family and non-owner occupied commercial real estate loans, those factors include: | |||||||||||||||||||||||||||||||||||
· Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment, | |||||||||||||||||||||||||||||||||||
· Changes in volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans, and | |||||||||||||||||||||||||||||||||||
· The existence and effect of concentrations of credit, and changes in the level of such concentrations. | |||||||||||||||||||||||||||||||||||
The resulting total ALLL factor is compared for reasonableness against the 10-year average, 15-year average, and trailing twelve month total charge-off data for all FDIC insured commercial banks and savings institutions based in California. This factor is applied to balances graded pass-1 through pass-5. For loans risk graded as watch or worse, progressively higher potential loss factors are applied based on management’s judgment, taking into consideration the specific characteristics of the Bank’s portfolio and analysis of results from a select group of the Company’s peers. | |||||||||||||||||||||||||||||||||||
Single Family and Consumer Loans and Warehouse Repurchase Facilities | |||||||||||||||||||||||||||||||||||
The Company’s base ALLL factor for single family and consumer loans and warehouse repurchase facilities is determined by management using the Bank’s actual trailing thirty-six month, trailing twenty-four month, trailing twelve month and annualized trailing six month charge-off data. Adjustments to those base factors are made for relevant internal and external factors. For single family and consumer loans and warehouse repurchase facilities, those factors include: | |||||||||||||||||||||||||||||||||||
· Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment. | |||||||||||||||||||||||||||||||||||
The resulting total ALLL factor is compared for reasonableness against the 10-year average, 15-year average, and trailing twelve month total charge-off data for all FDIC insured commercial banks and savings institutions based in California. This factor is applied to balances graded pass-1 through pass-5. For loans risk graded as watch or worse, progressively higher potential loss factors are applied based on management’s judgment, taking into consideration the specific characteristics of the Bank’s portfolio and analysis of results from a select group of the Company’s peers. | |||||||||||||||||||||||||||||||||||
The following tables summarize the allocation of the allowance as well as the activity in the allowance attributed to various segments in the loan portfolio as of and for the periods indicated: | |||||||||||||||||||||||||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi-family | One-to-four | Construction | Land | Other loans | Total | |||||||||||||||||||||||||
and | owner | non-owner | family | ||||||||||||||||||||||||||||||||
industrial | occupied | occupied | |||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,310 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 862 | $ | — | $ | 31 | $ | 52 | $ | 7,994 | |||||||||||||
Charge-offs | (509 | ) | (232 | ) | (143 | ) | — | (756 | ) | (101 | ) | (272 | ) | — | — | (18 | ) | (2,031 | ) | ||||||||||||||||
Recoveries | 138 | — | 50 | — | — | — | 47 | — | — | 142 | 377 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 1,029 | 538 | 165 | (1,152 | ) | 955 | (227 | ) | 462 | 136 | 96 | (142 | ) | 1,860 | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 1,968 | $ | 1,818 | $ | 151 | $ | 392 | $ | 1,658 | $ | 817 | $ | 1,099 | $ | 136 | $ | 127 | $ | 34 | $ | 8,200 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 104 | $ | — | $ | — | $ | — | $ | 105 | |||||||||||||
General portfolio allocation | 1,968 | 1,818 | 151 | 392 | 1,657 | 817 | 995 | 136 | 127 | 34 | 8,095 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | — | 747 | 14 | — | 983 | — | 683 | — | — | — | 2,427 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 0 | % | 0 | % | 0 | % | 0 | % | 0.1 | % | 0 | % | 15.23 | % | 0 | % | 0 | % | 0 | % | 4.33 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 187,035 | $ | 220,342 | $ | 10,645 | $ | 87,517 | $ | 332,561 | $ | 233,689 | $ | 144,552 | $ | 13,040 | $ | 7,605 | $ | 3,839 | $ | 1,240,825 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.05 | % | 0.83 | % | 1.42 | % | 0.45 | % | 0.5 | % | 0.35 | % | 0.69 | % | 1.04 | % | 1.67 | % | 0.89 | % | 0.65 | % | |||||||||||||
Total gross loans | $ | 187,035 | $ | 221,089 | $ | 10,659 | $ | 87,517 | $ | 333,544 | $ | 233,689 | $ | 145,235 | $ | 13,040 | $ | 7,605 | $ | 3,839 | $ | 1,243,252 | |||||||||||||
Total allowance to gross loans | 1.05 | % | 0.82 | % | 1.42 | % | 0.45 | % | 0.5 | % | 0.35 | % | 0.76 | % | 1.04 | % | 1.67 | % | 0.89 | % | 0.66 | % | |||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi-family | One-to-four | Construction | Land | Other loans | Total | |||||||||||||||||||||||||
and | owner | non-owner | family | ||||||||||||||||||||||||||||||||
industrial | occupied | occupied | |||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,361 | $ | 1,119 | $ | 80 | $ | 1,347 | $ | 1,287 | $ | 2,281 | $ | 931 | $ | — | $ | 39 | $ | 77 | $ | 8,522 | |||||||||||||
Charge-offs | (512 | ) | (265 | ) | (132 | ) | — | (88 | ) | — | (371 | ) | — | (145 | ) | (2 | ) | (1,515 | ) | ||||||||||||||||
Recoveries | 2 | — | 163 | — | 21 | — | 8 | — | — | 42 | 236 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 459 | 658 | (32 | ) | 197 | 239 | (1,136 | ) | 294 | — | 137 | (65 | ) | 751 | |||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,310 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 862 | $ | — | $ | 31 | $ | 52 | $ | 7,994 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | 270 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 395 | $ | — | $ | — | $ | — | $ | 665 | |||||||||||||
General portfolio allocation | $ | 1,040 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 467 | $ | — | $ | 31 | $ | 52 | $ | 7,329 | |||||||||||||
Loans individually evaluated for impairment | $ | 593 | $ | — | $ | 259 | $ | — | $ | 670 | $ | 266 | $ | 948 | $ | — | $ | — | $ | — | $ | 2,736 | |||||||||||||
Specific reserves to total loans individually evaluated for impairment | 45.53 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 41.67 | % | 0 | % | 0 | % | 0 | % | 24.31 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 114,761 | $ | 150,934 | $ | 6,623 | $ | 195,761 | $ | 252,739 | $ | 156,158 | $ | 96,515 | $ | — | $ | 8,774 | $ | 1,193 | $ | 983,458 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 0.91 | % | 1 | % | 1.19 | % | 0.79 | % | 0.58 | % | 0.73 | % | 0.48 | % | 0 | % | 0.35 | % | 4.36 | % | 0.75 | % | |||||||||||||
Total gross loans | $ | 115,354 | $ | 150,934 | $ | 6,882 | $ | 195,761 | $ | 253,409 | $ | 156,424 | $ | 97,463 | $ | — | $ | 8,774 | $ | 1,193 | $ | 986,194 | |||||||||||||
Total allowance to gross loans | 1.14 | % | 1 | % | 1.15 | % | 0.79 | % | 0.58 | % | 0.73 | % | 0.88 | % | 0 | % | 0.35 | % | 4.36 | % | 0.81 | % | |||||||||||||
Other_Real_Estate_Owned
Other Real Estate Owned | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Real Estate Owned | ' | |||||||
Other Real Estate Owned | ' | |||||||
6. Other Real Estate Owned | ||||||||
Other real estate owned was $1.2 million at December 31, 2013 and $2.3 million at December 31, 2012. The following summarizes the activity in the other real estate owned for the years ended December 31: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance, beginning of year | $ | 2,258 | $ | 1,231 | ||||
Additions / foreclosures | 996 | 3,151 | ||||||
Sales | (1,488 | ) | (785 | ) | ||||
Loss on sale | (226 | ) | (783 | ) | ||||
Write downs | (354 | ) | (556 | ) | ||||
Balance, end of year | $ | 1,186 | $ | 2,258 |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Premises and Equipment | ' | |||||||
Premises and Equipment | ' | |||||||
7. Premises and Equipment | ||||||||
Premises and equipment consisted of the following at December 31: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land | $ | 200 | $ | 200 | ||||
Premises | 3,350 | 3,327 | ||||||
Leasehold improvements | 5,231 | 4,123 | ||||||
Furniture, fixtures and equipment | 8,137 | 6,114 | ||||||
Automobiles | 187 | 192 | ||||||
Subtotal | 17,105 | 13,956 | ||||||
Less: accumulated depreciation | (7,241 | ) | (5,381 | ) | ||||
Total | $ | 9,864 | $ | 8,575 | ||||
Depreciation expense for premises and equipment was $1.9 million for 2013, $1.4 million for 2012 and $1.2 million for 2011. | ||||||||
Deposit_Accounts
Deposit Accounts | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Deposit Accounts | ' | |||||||||||
Deposit Accounts | ' | |||||||||||
8. Deposit Accounts | ||||||||||||
Deposit accounts and weighted average interest rates consisted of the following at December 31: | ||||||||||||
2013 | Weighted | 2012 | Weighted | |||||||||
Average | Average | |||||||||||
Interest Rate | Interest Rate | |||||||||||
(dollars in thousands) | ||||||||||||
Transaction accounts | ||||||||||||
Noninterest-bearing checking | $ | 366,755 | 0 | % | $ | 213,636 | 0 | % | ||||
Interest-bearing checking | 120,886 | 0.11 | % | 14,299 | 0.1 | % | ||||||
Money market | 427,577 | 0.29 | % | 236,206 | 0.32 | % | ||||||
Regular passbook | 76,412 | 0.14 | % | 79,420 | 0.22 | % | ||||||
Total transaction accounts | 991,630 | 0.15 | % | 543,561 | 0.19 | % | ||||||
Certificates of deposit accounts | ||||||||||||
Up to $100,000 | 125,313 | 0.8 | % | 157,150 | 0.97 | % | ||||||
Over $100,000 to $250,000 | 130,711 | 0.93 | % | 148,531 | 1.02 | % | ||||||
Over $250,000 | 58,632 | 0.95 | % | 55,526 | 1.04 | % | ||||||
Total certificates of deposit accounts | 314,656 | 0.88 | % | 361,207 | 1 | % | ||||||
Total deposits | $ | 1,306,286 | 0.33 | % | $ | 904,768 | 0.51 | % | ||||
The aggregate annual maturities of certificates of deposit accounts at December 31, 2013 are as follows: | ||||||||||||
2013 | ||||||||||||
Balance | Weighted | |||||||||||
average | ||||||||||||
interest rate | ||||||||||||
(dollars in thousands) | ||||||||||||
Within 3 months | $ | 36,547 | 0.47 | % | ||||||||
4 to 6 months | 52,738 | 0.79 | % | |||||||||
7 to 12 months | 113,214 | 0.78 | % | |||||||||
13 to 24 months | 101,263 | 1.16 | % | |||||||||
25 to 36 months | 7,099 | 1.11 | % | |||||||||
37 to 60 months | 3,134 | 1.56 | % | |||||||||
Over 60 months | 661 | 0.96 | % | |||||||||
Total | $ | 314,656 | 0.88 | % | ||||||||
The average cost of deposits was 0.47% for 2013 and 0.81% for 2012. | ||||||||||||
Interest expense on deposit accounts for the years ended December 31 is summarized as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Checking accounts | $ | 110 | $ | 82 | $ | 126 | ||||||
Passbook accounts | 103 | 266 | 516 | |||||||||
Money market accounts | 1,043 | 727 | 906 | |||||||||
Certificates of deposit accounts | 2,809 | 4,778 | 6,740 | |||||||||
Total | $ | 4,065 | $ | 5,853 | $ | 8,288 | ||||||
Accrued interest on deposits, which is included in accrued expenses and other liabilities, was $94,000 at December 31, 2013 and $71,000 at December 31, 2012. | ||||||||||||
Federal_Home_Loan_Bank_Advance
Federal Home Loan Bank Advances and Other Borrowings | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Federal Home Loan Bank Advances and Other Borrowings | ' | |||||||
Federal Home Loan Bank Advances and Other Borrowings | ' | |||||||
9. Federal Home Loan Bank Advances and Other Borrowings | ||||||||
The Company has a line of credit with the FHLB that provides for advances totaling up to 45% of the Company’s assets, equating to a credit line of $704.3 million as of December 31, 2013. At December 31, 2013, the Company had $156.0 million in overnight FHLB advances, compared to $87.0 million in overnight FHLB advances at December 31, 2012. The FHLB advances at December 31, 2013 were collateralized by real estate loans and securities with an aggregate balance of $549.7 million and FHLB stock of $7.5 million. With this pledged collateral, the Company has additional available advances of $227.7 million as of December 31, 2013. | ||||||||
The following table summarizes activities in advances from the FHLB for the periods indicated: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Average balance outstanding | $ | 26,137 | $ | 9,154 | ||||
Maximum amount outstanding at any month-end during the year | 156,000 | 87,000 | ||||||
Balance outstanding at end of year | 156,000 | 87,000 | ||||||
Weighted average interest rate during the year | 0.15 | % | 0.28 | % | ||||
Credit facilities have been established with Citigroup, Barclays Bank and Union Bank. The outstanding credit facilities are secured by pledged investment securities. At December 31, 2013 and 2012, the Company had borrowings of $18.5 million with Citigroup that mature in September of 2018, $10.0 million with Barclays Bank that mature in February of 2018 and an unused reverse repurchase facility with Union Bank of $50 million. The outstanding borrowings are secured by MBS with an estimated fair value of $34.9 million. | ||||||||
The Company sells certain securities under agreements to repurchase. The agreements are treated as overnight borrowings with the obligations to repurchase securities sold reflected as a liability. The dollar amount of investment securities underlying the agreements remain in the asset accounts. The Company enters into these debt agreements as a service to certain HOA depositors to add protection for deposit amounts above FDIC insurance levels. At December 31, 2013, the Company sold securities under agreement to repurchase of $18.6 million with weighted average rate of 0.02% and collateralized by investment securities with fair value of approximately $18.6 million. | ||||||||
At December 31, 2013, the Bank had unsecured lines of credit with seven correspondent banks for a total amount of $59.0 million and access through the Federal Reserve discount window to borrow $3.3 million. At December 31, 2013, the Company had $1.0 million in outstanding balances against these lines with no outstanding balance at December 31, 2012. The following summarizes activities in other borrowings: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Average balance outstanding | $ | 45,310 | $ | 28,500 | ||||
Maximum amount outstanding at any month-end during the year | 52,077 | 28,500 | ||||||
Balance outstanding at end of year | 48,091 | 28,500 | ||||||
Weighted average interest rate during the year | 2.09 | % | 3.31 | % | ||||
Subordinated_Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2013 | |
Subordinated Debentures | ' |
Subordinated Debentures | ' |
10. Subordinated Debentures | |
On March 25, 2004 the Corporation issued $10,310,000 of Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Debt Securities”) to PPBI Trust I, a statutory trust created under the laws of the State of Delaware. The Debt Securities are subordinated to effectively all borrowings of the Corporation and are due and payable on April 7, 2034. Interest is payable quarterly on the Debt Securities at three-month LIBOR plus 2.75% for a rate of 2.99% at December 31, 2013 and 3.09% at December 31 2012. The Debt Securities may be redeemed, in part or whole, on or after April 7, 2009 at the option of the Corporation, at par. The Debt Securities can also be redeemed at par if certain events occur that impact the tax treatment or the capital treatment of the issuance. The Corporation also purchased a 3% minority interest totaling $310,000 in PPBI Trust I. The balance of the equity of PPBI Trust I is comprised of mandatorily redeemable preferred securities (“Trust Preferred Securities”) and is included in other assets. PPBI Trust I sold $10,000,000 of Trust Preferred Securities to investors in a private offering. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
11. Income Taxes | |||||||||||
Income taxes for the years ended December 31 consisted of the following: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current income tax provision: | |||||||||||
Federal | $ | 7,008 | $ | 6,403 | $ | 3,781 | |||||
State | 2,329 | 2,026 | 1,386 | ||||||||
Total current income tax provision | 9,337 | 8,429 | 5,167 | ||||||||
Deferred income tax provision (benefit): | |||||||||||
Federal | (3,129 | ) | 1,262 | 899 | |||||||
State | (621 | ) | 298 | 345 | |||||||
Total deferred income tax provision (benefit) | (3,750 | ) | 1,560 | 1,244 | |||||||
Total income tax provision | $ | 5,587 | $ | 9,989 | $ | 6,411 | |||||
A reconciliation from statutory federal income taxes to the Company’s effective income taxes for the years ended December 31 are as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Statutory federal income tax provision | $ | 5,103 | $ | 8,760 | $ | 5,774 | |||||
California franchise tax, net of federal income tax effect | 1,027 | 1,842 | 1,214 | ||||||||
Other, including tax exempt income | (543 | ) | (613 | ) | (577 | ) | |||||
Total income tax provision | $ | 5,587 | $ | 9,989 | $ | 6,411 | |||||
Deferred tax assets (liabilities) were comprised of the following temporary differences between the financial statement carrying amounts and the tax basis of assets at December 31: | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Accrued expenses | $ | 891 | $ | 442 | |||||||
Net operating loss | 3,353 | 3,673 | |||||||||
Allowance for loan losses, net of bad debt charge-offs | 3,336 | 3,390 | |||||||||
Directors deferred compensation | 1,896 | — | |||||||||
Unrealized loss on available for sale securities | 2,160 | — | |||||||||
State taxes | 858 | 765 | |||||||||
Capital loss on mutual funds | — | 281 | |||||||||
Other-than-temporary impairment | 684 | 2,180 | |||||||||
Restricted stock and options expense | 6 | 6 | |||||||||
Other | — | 147 | |||||||||
Total deferred tax assets | 13,184 | 10,884 | |||||||||
Deferred tax liabilities: | |||||||||||
Federal Home Loan Bank stock dividends | (306 | ) | (560 | ) | |||||||
Deferred FDIC gain | (1,944 | ) | (2,367 | ) | |||||||
Core deposit intangibles | (1,813 | ) | — | ||||||||
Depreciation | (216 | ) | (111 | ) | |||||||
Unrealized gain on available for sale securities | — | (772 | ) | ||||||||
Other | (428 | ) | (187 | ) | |||||||
Total deferred tax liabilities | (4,707 | ) | (3,997 | ) | |||||||
Net deferred tax asset | $ | 8,477 | $ | 6,887 | |||||||
At December 31, 2013, there was no valuation allowance against the Company’s deferred tax asset. The Company has a net operating loss carryforward of approximately $9.4 million for federal income tax purposes which expires in 2023. In addition, the Company has a net operating loss carryforward of approximately $942,000 for California franchise tax purposes. However, the state of California has suspended the net operating loss deduction utilization for the tax years 2009, 2010, 2011, and 2012. The net operating loss deduction for the state is now scheduled to expire in 2033. With the completion of the secondary offering in October 2003, the Company had an “ownership change” as defined under Internal Revenue Code Section 382. Under Section 382, which has also been adopted under California law, if during any three-year period there is more than a 50 percentage point change in the ownership of the Company, then the future use of any pre-change net operating losses or built-in losses of the Company are subject to an annual percentage limitation based on the value of the company at the ownership change date. The ownership change reduced the net operating loss carryforward for federal and state tax purposes. The annual usable net operating loss carryforward going forward is approximately $932,000 per year. | |||||||||||
As of December 31, 2013, tax years for 2010 through 2012 remain open to audit by the Internal Revenue Service and 2008 through 2012 by various state taxing agencies. As of December 31, 2013, the Bank is not undergoing any examination by the California Franchise Tax Board. | |||||||||||
Commitments_Contingencies_and_
Commitments, Contingencies and Concentrations of Risk | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments, Contingencies and Concentrations of Risk | ' | ||||||||||
Commitments, Contingencies and Concentrations of Risk | ' | ||||||||||
12. Commitments, Contingencies and Concentrations of Risk | |||||||||||
Legal Proceedings — In February 2004, the Bank was named in a class action lawsuit titled, “James Baker v. Century Financial, et al,” alleging various violations of Missouri’s Second Mortgage Loans Act (the “Missouri Act”) by charging and receiving fees and costs that were either wholly prohibited by or in excess of that allowed by the Missouri Act relating to origination fees, interest rates, and other charges. The class action lawsuit was filed in the Circuit Court of Clay County, Missouri. The complaint seeks restitution of all improperly collected charges, interest plus the right to rescind the mortgage loans or a right to offset any illegal collected charges, interest against the principal amounts due on the loans and punitive damages. In March 2005, the Bank’s motion for dismissal due to limitations was denied by the trial court without comment. The Bank’s “preemption” motion was denied in August 2006. The Bank has answered the plaintiffs’ complaint and the parties have exchanged and answered initial discovery requests. When the record is more fully developed, the Bank intends to raise the limitations issue again in the form of a motion for summary judgment. | |||||||||||
The Company is not involved in any other pending legal proceedings other than legal proceedings occurring in the ordinary course of business. Management believes that none of these legal proceedings, individually or in the aggregate, will have a material adverse impact on the results of operations or financial condition of the Company. | |||||||||||
Lease Commitments — The Company leases a portion of its facilities from non-affiliates under operating leases expiring at various dates through 2028. The following schedule shows the minimum annual lease payments, excluding any renewals and extensions, property taxes, and other operating expenses, due under these agreements: | |||||||||||
Year ending | |||||||||||
December 31, | |||||||||||
(in thousands) | |||||||||||
2014 | $ | 2,837 | |||||||||
2015 | 2,730 | ||||||||||
2016 | 2,398 | ||||||||||
2017 | 2,119 | ||||||||||
2018 | 1,625 | ||||||||||
Thereafter | 2,344 | ||||||||||
Total | $ | 14,053 | |||||||||
Rental expense under all operating leases totaled $2.4 million for 2013, $1.2 million for 2012, and $926,000 for 2011. | |||||||||||
Share-Based Compensation — The following table provides a summary of the expenses the Company has recognized related to share-based compensation awards. The table below also shows the impact those expenses have had on diluted earnings per share and the remaining expense associated with those awards for the years ended December 31: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except per share data) | |||||||||||
Share-based compensation expense: | |||||||||||
Stock option expense | $ | 943 | $ | 177 | $ | 208 | |||||
Total share-based compensation expense | 943 | 177 | 208 | ||||||||
Total share-based compensation expense, net of tax | $ | 896 | $ | 169 | $ | 205 | |||||
Diluted shares outstanding | 16,609,954 | 10,984,034 | 10,630,720 | ||||||||
Impact on diluted earnings per share | $ | 0.054 | $ | 0.015 | $ | 0.019 | |||||
Employment Agreements—The Company has entered into a three-year employment agreement with its Chief Executive Officer (“CEO”). This agreement provides for the payment of a base salary and a bonus based upon the CEO’s individual performance and the Company’s overall performance, provides a vehicle for the CEO’s use, and provides for the payment of severance benefits upon termination under specified circumstances. Additionally, the Bank has entered into three-year employment agreements with the following executive officers: Chief Banking Officer, the Chief Financial Officer and the Chief Credit Officer. The agreements provide for the payment of a base salary, a bonus based upon the individual’s performance and the overall performance of the Bank and the payment of severance benefits upon termination under specified circumstances. | |||||||||||
Availability of Funding Sources—The Company funds substantially all of the loans, which it originates or purchases, through deposits, internally generated funds, and/or borrowings. The Company competes for deposits primarily on the basis of rates, and, as a consequence, the Company could experience difficulties in attracting deposits to fund its operations if the Company does not continue to offer deposit rates at levels that are competitive with other financial institutions. To the extent that the Company is not able to maintain its currently available funding sources or to access new funding sources, it would have to curtail its loan production activities or sell loans and investment securities earlier than is optimal. Any such event could have a material adverse effect on the Company’s results of operations, financial condition and cash flows. | |||||||||||
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Benefit Plans | ' | |||||||||||
Benefit Plans | ' | |||||||||||
13. Benefit Plans | ||||||||||||
401(k) Plan—The Bank maintains an Employee Savings Plan (the “401(k) Plan”) which qualifies under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees may contribute between 1% to 50% of their compensation. In 2012, 2011 and 2010, the Bank matched 100% of contributions for the first three percent contributed and 50% on the next two percent contributed. Contributions made to the 401(k) Plan by the Bank amounted to $401,000 for 2013, $260,000 for 2012 and $212,000 for 2011. | ||||||||||||
On April 27, 2000, in an effort to attract and retain talented employees, the Board approved the combination of the 1996 Option Plan and the 1997 Option Plan into the “2000 Stock Incentive Plan.” At the 2000 Annual Meeting, the Corporation’s shareholder approved 2000 Stock Incentive Plan. Additionally, the Corporation increased the total shares available under the 2000 Incentive Plan to 975,000 shares. | ||||||||||||
Pacific Premier Bancorp, Inc. 2004 Long-Term Incentive Plan (the “2004 Plan”)—The 2004 Plan was approved by the Corporation’s stockholders in May 2004. The 2004 Plan authorizes the granting of options equal to 525,500 shares of the common stock of the Corporation for issuances to executives, key employees, officers, and directors. The 2004 Plan will be in effect for a period of ten years from February 25, 2004, the date the 2004 Plan was adopted. Options granted under the 2004 Plan will be made at an exercise price equal to the fair market value of the stock on the date of grant. Awards granted to officers and employees may include incentive stock options, nonstatutory stock options and limited rights, which are exercisable only upon a change in control of the Corporation. The options granted pursuant to the 2004 Plan vest at a rate of 33.3% per year. | ||||||||||||
Pacific Premier Bancorp, Inc. 2012 Long-Term Incentive Plan (the “2012 Plan”)—The 2012 Plan was approved by the Corporation’s stockholders in May 2012. The 2012 Plan authorizes the granting of options equal to 620,000 shares of the common stock of the Corporation for issuances to executives, key employees, officers, and directors. The 2012 Plan will be in effect for a period of ten years from May 30, 2012, the date the 2012 Plan was adopted. Options granted under the 2012 Plan will be made at an exercise price equal to the fair market value of the stock on the date of grant. Awards granted to officers and employees may include incentive stock options, nonstatutory stock options and limited rights, which are exercisable only upon a change in control of the Corporation. The options granted pursuant to the 2012 Plan vest at a rate of 33.3% per year. | ||||||||||||
The 2000 Stock Incentive Plan, the Pacific Premier Bancorp, Inc. 2004 Long-Term Incentive Plan, and the Pacific Premier Bancorp, Inc. 2012 Long-Term Incentive Plan are collectively the “Option Plans.” | ||||||||||||
Below is a summary of the activity in the Option Plans for the years ended December 31, 2013 and 2012: | ||||||||||||
2013 | 2012 | |||||||||||
Shares | Weighted | Shares | Weighted | |||||||||
average exercise | average exercise | |||||||||||
price per share | price per share | |||||||||||
Options outstanding at the beginning of the year | 672,334 | $ | 8.34 | 568,500 | $ | 8.34 | ||||||
Granted | 202,000 | 10.64 | 190,000 | 7.87 | ||||||||
Exercised | (57,164 | ) | 9.16 | (60,662 | ) | 6.33 | ||||||
Forfeited and expired | (3,500 | ) | 5.91 | (25,504 | ) | 9.72 | ||||||
Options outstanding at the end of the year | 813,670 | $ | 8.86 | 672,334 | $ | 8.34 | ||||||
Options exercisable at the end of the year | 470,687 | 449,435 | ||||||||||
Weighted average remaining contractual life of options outstanding at end of year | 6.0 Years | 5.6 Years | ||||||||||
The aggregate intrinsic value (the amount by which a call option is in the money, calculated by taking the difference between the strike price and the market price of the underlying securities) of options outstanding was $5.6 million at December 31, 2013, $1.5 million at December 31, 2012, and $184,000 at December 31, 2011. | ||||||||||||
The aggregate intrinsic value of vested options outstanding was $3.4 million at December 31, 2013, $695,000 at December 31, 2012, and $180,000 at December 31, 2011. | ||||||||||||
The amount charged against compensation expense in relation to the stock options was $943,000 for 2013 and $177,000 for 2012. At December 31, 2013, unrecognized compensation expense related to the options is approximately $56,000 for 2014, $232,000 for 2015 and $9,000 for 2016. | ||||||||||||
Options granted under the Option Plans during 2013, 2012 and 2011 were valued using the Black-Scholes model with the following average assumptions: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Expected volatility | 22.2% - 25.82% | 23.14% | 16.49% - 38.47% | |||||||||
Expected term | 10.0 Years | 10.0 Years | 10.0 Years | |||||||||
Expected dividends | None | None | None | |||||||||
Risk free rate | 1.78% - 2.67% | 1.57% | 1.92% - 3.50% | |||||||||
Weighted-average grant date fair value | $3.93 - $5.87 | $7.87 | $1.80 - $3.47 | |||||||||
Salary Continuation Plan—The Bank implemented a non-qualified supplemental retirement plan in 2006 (the “Salary Continuation Plan”) for certain executive officers of the Bank. The Salary Continuation Plan is unfunded. The amounts expensed in 2013 and 2012 under the Salary Continuation Plan amounted to $122,000 and $80,000, respectively. As of December 31, 2013 and 2012, $1.0 million and $524,000, respectively, were recorded in other liabilities on the consolidated statements of condition for the Salary Continuation Plan. | ||||||||||||
Directors’ Deferred Compensation Plan—The Bank created a Directors’ Deferred Compensation Plan in September 2006 which allows directors to defer board of directors’ fees. The deferred compensation is credited with interest by the Bank at prime plus one percent and the accrued liability is payable upon retirement or resignation. The Directors’ Deferred Compensation Plan is unfunded. The Company is under no obligation to make matching contributions to the plan. At December 31, 2013 the liability for the plan was $315,000 compared to $269,000, at December 31, 2012. The interest expense for 2013 was $7,000, compared to $10,000 for 2012 and $7,000 for 2011. | ||||||||||||
Long-Term Care Insurance Plan—The Bank implemented a Long-Term Care Insurance Plan in September 2006 for the executive officers and directors of the Bank. The non-employee directors may elect not to participate in the insurance plan. For those who opt out, the amount of the insurance premium, up to $4,000 annually, will be recorded each month to their deferred compensation account with interest. The expense for 2013 and 2012 was $79,000 and $33,000, respectively, for this plan. As of December 31, 2013 and 2012, $90,000 and $70,000, respectively, was recorded in other liabilities on the consolidated statements of condition for the insurance plan. | ||||||||||||
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2013 | |
Financial Instruments with Off-Balance Sheet Risk | ' |
Financial Instruments with Off-Balance Sheet Risk | ' |
14. Financial Instruments with Off-Balance Sheet Risk | |
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of originating loans or providing funds under existing lines or letters of credit. These commitments 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 and may require payment of a fee. Since many commitments are expected to expire, the total commitment amounts do not necessarily represent future cash requirements. Commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the accompanying consolidated statements of financial condition. | |
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual or notional amount of those instruments. The Company controls credit risk of its commitments to fund loans through credit approvals, limits and monitoring procedures. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company evaluates each customer for creditworthiness. | |
The Company receives collateral to support commitments when deemed necessary. The most significant categories of collateral include real estate properties underlying mortgage loans, liens on personal property and cash on deposit with the Bank. | |
The Company maintains an allowance for credit losses to provide for commitments related to loans associated with undisbursed loan funds and unused lines of credit. The allowance for these commitments was $341,000 at December 31, 2013 and $127,000 at December 31, 2012. | |
The Company’s commitments to extend credit at December 31, 2013 were $337.2 million and $131.5 million at December 31, 2012. The 2013 balance is primarily composed of $207.5 million of undisbursed warehouse loans and $77.2 million of undisbursed C&I loans. | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
15. Fair Value of Financial Instruments | |||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: | |||||||||||||||||
Level 1 – unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company | |||||||||||||||||
Level 2 – inputs that are observable in the marketplace other than those inputs classified as Level 1 | |||||||||||||||||
Level 3 – inputs that are unobservable in the marketplace and significant to the valuation | |||||||||||||||||
Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at December 31, 2013 and 2012: | |||||||||||||||||
Cash and due from banks – The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. | |||||||||||||||||
Securities Available for Sale – Where possible, the Company utilizes quoted market prices to measure debt and equity securities; such items are classified as Level 1 in the hierarchy and include equity securities, US government bonds and securities issued by federally sponsored agencies. When quoted market prices for identical assets are unavailable or the market for the asset is not sufficiently active, varying valuation techniques are used. Common inputs in valuing these assets include, among others, benchmark yields, issuer spreads, forward mortgage-backed securities trade prices and recently reported trades. Such assets are classified as Level 2 in the hierarchy and typically include private label mortgage-backed securities and corporate bonds. Pricing on these securities are provided to the Company by a pricing service vendor. In the Level 3 category, the Company is classifying all the securities that the Company pricing service vendor cannot price due to lack of trade activity in these securities. | |||||||||||||||||
FHLB and Federal Reserve Bank Stock – The carrying value approximates the fair value based upon the redemption provisions of the stock and are classified as Level 1. | |||||||||||||||||
Loans Held for Sale – The fair value of loans held for sale is determined, when possible, using quoted secondary-market prices. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan. Loans held for sale are classified as Level 2. | |||||||||||||||||
Loans Held for Investment – For variable-rate loans that re-price frequently and have no significant change in credit risk, fair values are based on carrying values resulting in a Level 2 classification. The carrying amount of accrued interest receivable approximates its fair value as a Level 2 classification. | |||||||||||||||||
Other real estate owned – Other real estate owned represents real estate that the Company has taken control of in partial or full satisfaction of loans. At the time of foreclosure, other real estate owned is recorded at the fair value of the real estate, less costs to sell, which becomes the property’s new basis. Fair values are generally based on third party appraisals of the property less any estimated selling costs and are classified as Level 2. | |||||||||||||||||
Accrued Interest Receivable/Payable – The carrying amount approximates fair value and are classified as Level 1. | |||||||||||||||||
Deposit Accounts – The fair values estimated for demand deposits (interest and noninterest checking, passbook savings, and certain types of money market accounts) are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts) resulting in a Level 1 classification. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of the aggregate expected monthly maturities on time deposits in a Level 2 classification. The carrying amount of accrued interest payable approximates its fair value as a Level 1 classification. | |||||||||||||||||
FHLB Advances and Other Borrowings – For these instruments, the fair value of short term borrowings is estimated to be the carrying amount and is classified as Level 1. The fair value of long term borrowings and debentures is determined using rates currently available for similar borrowings or debentures with similar credit risk and for the remaining maturities and are classified as Level 2. The carrying amount of accrued interest payable approximates its fair value as a Level 2 classification. | |||||||||||||||||
Subordinated Debentures – The fair value of subordinated debentures is estimated by discounting the balance by the current three-month LIBOR rate plus the current market spread. The fair value is determined based on the maturity date as the Company does not currently have intentions to call the debenture and are classified as Level 2. | |||||||||||||||||
Off-balance sheet commitments and standby letters of credit – The majority of the Bank’s commitments to extend credit carry current market interest rates if converted to loans. Because these commitments are generally unassignable by either the Bank or the borrower, they only have value to the Bank and the borrower. The notional amount disclosed for off-balance sheet commitments and standby letters of credit is the amount available to be drawn down on all lines and letters of credit. The cost to assume is calculated at 10% of the notional amount and is classified as Level 2. | |||||||||||||||||
Estimated fair values are disclosed for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. | |||||||||||||||||
The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2013 and 2012. | |||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 126,813 | $ | 126,813 | $ | — | $ | — | $ | 126,813 | |||||||
Securities available for sale | 256,089 | — | 256,089 | — | 256,089 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 15,450 | 15,450 | — | — | 15,450 | ||||||||||||
Loans held for sale, net | 3,147 | — | 3,147 | — | 3,147 | ||||||||||||
Loans held for investment, net | 1,231,923 | — | 1,227,889 | 2,427 | 1,230,316 | ||||||||||||
Accrued interest receivable | 6,254 | 6,254 | — | — | 6,254 | ||||||||||||
Other real estate owned | 1,186 | — | 1,186 | — | 1,186 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,306,286 | 991,630 | 301,007 | — | 1,292,637 | ||||||||||||
FHLB advances | 156,000 | 156,000 | — | — | 156,000 | ||||||||||||
Other borrowings | 48,091 | — | 49,058 | — | 49,058 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,696 | — | 4,696 | ||||||||||||
Accrued interest payable | 166 | 166 | — | — | 166 | ||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 337,181 | $ | — | $ | 33,718 | $ | — | $ | 33,718 | |||||||
At December 31, 2012 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 59,352 | $ | 59,352 | $ | — | $ | — | $ | 59,352 | |||||||
Securities available for sale | 84,066 | — | 83,114 | 952 | 84,066 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 11,247 | 11,247 | — | — | 11,247 | ||||||||||||
Loans held for sale, net | 3,681 | — | 3,681 | — | 3,681 | ||||||||||||
Loans held for investment, net | 974,213 | — | 1,046,853 | 2,736 | 1,049,589 | ||||||||||||
Accrued interest receivable | 4,126 | 4,126 | — | — | 4,126 | ||||||||||||
Other real estate owned | 2,258 | — | 2,258 | — | 2,258 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 904,768 | 548,101 | 363,382 | — | 911,483 | ||||||||||||
FHLB advances | 87,000 | 87,000 | — | — | 87,000 | ||||||||||||
Other borrowings | 28,500 | — | 31,267 | — | 31,267 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,973 | — | 4,973 | ||||||||||||
Accrued interest payable | 142 | 142 | — | — | 142 | ||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 131,450 | $ | — | $ | 13,145 | $ | — | $ | 13,145 | |||||||
A loan is considered impaired when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. Impairment is measured based on the fair value of the underlying collateral or the discounted expected future cash flows. The Company measures impairment on all non-accrual loans for which it has reduced the principal balance to the value of the underlying collateral less the anticipated selling cost. As such, the Company records impaired loans as non-recurring Level 2 when the fair value of the underlying collateral is based on an observable market price or current appraised value. When current market prices are not available or the Company determines that the fair value of the underlying collateral is further impaired below appraised values, the Company records impaired loans as Level 3. At December 31, 2013, substantially all the Company’s impaired loans were evaluated based on the fair value of their underlying collateral based upon the most recent appraisal available to management. | |||||||||||||||||
The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. | |||||||||||||||||
The following fair value hierarchy table presents information about the Company’s assets measured at fair value on a recurring basis at the dates indicated: | |||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Marketable securities | $ | — | $ | 256,089 | $ | — | $ | 256,089 | |||||||||
Total assets | $ | — | $ | 256,089 | $ | — | $ | 256,089 | |||||||||
At December 31, 2012 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Marketable securities | $ | — | $ | 83,114 | $ | 952 | $ | 84,066 | |||||||||
Total assets | $ | — | $ | 83,114 | $ | 952 | $ | 84,066 | |||||||||
The following table provides a summary of the changes in consolidated statements of financial condition carrying values associated with Level 3 financial instruments during the twelve months ended December 31, 2013: | |||||||||||||||||
Marketable Securities | Fair Value Measurement Using | ||||||||||||||||
Significant Other Unobservable | |||||||||||||||||
Inputs (Level 3) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Beginning Balance, January 1, 2013 | $ | 952 | |||||||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||
Included in earnings (or changes in net assets) | 194 | ||||||||||||||||
Included in other comprehensive income | (140 | ) | |||||||||||||||
Purchases, issuances, and settlements | (1,077 | ) | |||||||||||||||
Transfer in and/or out of Level 3 | 71 | ||||||||||||||||
Ending Balance, December 31, 2013 | $ | — | |||||||||||||||
The following table provides a summary of the financial instruments the Company measures at fair value on a non-recurring basis as of December 31, 2013: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Impaired Loans | $ | — | $ | — | $ | 2,427 | $ | 2,427 | |||||||||
Loans held for sale | — | 3,147 | — | 3,147 | |||||||||||||
Other real estate owned | — | 1,186 | — | 1,186 | |||||||||||||
Total assets | $ | — | $ | 4,333 | $ | 2,427 | $ | 6,760 |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share | ' | |||||||||
Earnings Per Share | ' | |||||||||
16. Earnings Per Share | ||||||||||
Earnings per share of common stock is calculated on both a basic and diluted basis based on the weighted average number of common and common equivalent shares outstanding, excluding common shares in treasury. Basic earnings per share excludes dilution and is computed by dividing income available to stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then would share in earnings. | ||||||||||
A reconciliation of the numerators and denominators used in basic and diluted earnings per share computations is presented in the table below. Excluded from the diluted earnings per share calculation were options to purchase 2,601 shares of common stock for the year ended December 31, 2013 and 259,373 shares of common stock for the year ended December 31, 2012, as the exercise prices exceeded the stock price at the end of each period | ||||||||||
Income/(Loss) | Shares | Per Share | ||||||||
(numerator) | (denominator) | Amount | ||||||||
(dollars in thousands, except share data) | ||||||||||
For the year ended December 31, 2013: | ||||||||||
Net income applicable to earnings per share | $ | 8,993 | ||||||||
Basic earnings per share: Income available to common stockholders | 8,993 | 15,798,885 | $ | 0.57 | ||||||
Effect of dilutive securities: Warrants and stock option plans | — | 811,069 | ||||||||
Diluted earnings per share: Income available to common stockholders | $ | 8,993 | 16,609,954 | $ | 0.54 | |||||
For the year ended December 31, 2012: | ||||||||||
Net income applicable to earnings per share | $ | 15,776 | ||||||||
Basic earnings per share: Income available to common stockholders | 15,776 | 10,571,073 | $ | 1.49 | ||||||
Effect of dilutive securities: Warrants and stock option plans | — | 412,961 | ||||||||
Diluted earnings per share: Income available to common stockholders | $ | 15,776 | 10,984,034 | $ | 1.44 | |||||
For the year ended December 31, 2011: | ||||||||||
Net income applicable to earnings per share | $ | 10,572 | ||||||||
Basic earnings per share: Income available to common stockholders | 10,572 | 10,092,181 | $ | 1.05 | ||||||
Effect of dilutive securities: Warrants and stock option plans | — | 538,539 | ||||||||
Diluted earnings per share: Income available to common stockholders | $ | 10,572 | 10,630,720 | $ | 0.99 |
Related_Parties
Related Parties | 12 Months Ended |
Dec. 31, 2013 | |
Related Parties | ' |
Related Parties | ' |
17. Related Parties | |
Loans to the Company’s executive officers and directors are made in the ordinary course of business and are made on substantially the same terms as comparable transactions. There were no new loans made or outstanding to any officers or directors of the Company in 2013 or 2012. | |
At the end of 2013 the Company had related party deposits of $819,000 compared to $1.2 million at the end of 2012. | |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Results of Operations (Unaudited) | ' | |||||||||||||
Quarterly Results of Operations (Unaudited) | ' | |||||||||||||
18. Quarterly Results of Operations (Unaudited) | ||||||||||||||
The following is a summary of selected financial data presented below by quarter for the periods indicated: | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(dollars in thousands, except per share data) | ||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||
Interest income | $ | 14,235 | $ | 14,936 | $ | 16,374 | $ | 17,973 | ||||||
Interest expense | 1,336 | 1,347 | 1,366 | 1,307 | ||||||||||
Provision for estimated loan losses | 296 | 322 | 646 | 596 | ||||||||||
Noninterest income | 1,724 | 2,431 | 2,321 | 2,617 | ||||||||||
Noninterest expense | 11,179 | 15,856 | 11,771 | 12,009 | ||||||||||
Income tax provision | 1,176 | 91 | 1,846 | 2,474 | ||||||||||
Net income | $ | 1,972 | $ | (249 | ) | $ | 3,066 | $ | 4,204 | |||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.14 | $ | (0.02 | ) | $ | 0.19 | $ | 0.26 | |||||
Diluted | $ | 0.13 | $ | (0.02 | ) | $ | 0.18 | $ | 0.25 | |||||
For the year ended December 31, 2012 | ||||||||||||||
Interest income | $ | 12,116 | $ | 13,046 | $ | 13,626 | $ | 14,159 | ||||||
Interest expense | 2,075 | 1,764 | 1,772 | 1,538 | ||||||||||
Provision for estimated loan losses | — | — | 145 | 606 | ||||||||||
Noninterest income | 939 | 6,529 | 1,910 | 3,194 | ||||||||||
Noninterest expense | 6,641 | 8,205 | 8,031 | 8,977 | ||||||||||
Income tax provision | 1,647 | 3,795 | 2,126 | 2,421 | ||||||||||
Net income | $ | 2,692 | $ | 5,811 | $ | 3,462 | $ | 3,811 | ||||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.26 | $ | 0.56 | $ | 0.34 | $ | 0.33 | ||||||
Diluted | $ | 0.25 | $ | 0.55 | $ | 0.32 | $ | 0.32 |
Parent_Company_Financial_Infor
Parent Company Financial Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Parent Company Financial Information | ' | ||||||||||
Parent Company Financial Information | ' | ||||||||||
19. Parent Company Financial Information | |||||||||||
The Corporation is a California-based bank holding company organized in 1997 as a Delaware corporation and owns 100% of the capital stock of the Bank, its principal operating subsidiary. The Bank was incorporated and commenced operations in 1983. Condensed financial statements of the Corporation are as follows: | |||||||||||
PACIFIC PREMIER BANCORP, INC. | |||||||||||
STATEMENTS OF FINANCIAL CONDITION | |||||||||||
(Parent company only) | |||||||||||
At December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 2,873 | $ | 7,027 | |||||||
Deferred income taxes | 3,280 | 4,129 | |||||||||
Investment in subsidiaries | 179,034 | 133,560 | |||||||||
Other assets | 611 | 411 | |||||||||
Total Assets | $ | 185,798 | $ | 145,127 | |||||||
Liabilities: | |||||||||||
Subordinated debentures | $ | 10,310 | $ | 10,310 | |||||||
Accrued expenses and other liabilities | 262 | 301 | |||||||||
Total Liabilities | 10,572 | 10,611 | |||||||||
Total Stockholders’ Equity | 175,226 | 134,516 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 185,798 | $ | 145,127 | |||||||
PACIFIC PREMIER BANCORP, INC. | |||||||||||
STATEMENTS OF OPERATIONS | |||||||||||
(Parent company only) | |||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Income: | |||||||||||
Interest income | $ | 20 | $ | 4 | $ | 4 | |||||
Noninterest income | 3 | 24 | 6 | ||||||||
Total income | 23 | 28 | 10 | ||||||||
Expense: | |||||||||||
Interest expense | 307 | 326 | 310 | ||||||||
Noninterest expense | 2,141 | 1,138 | 546 | ||||||||
Total expense | 2,448 | 1,464 | 856 | ||||||||
Loss before income tax provision | (2,425 | ) | (1,436 | ) | (846 | ) | |||||
Income tax benefit | (827 | ) | (591 | ) | (349 | ) | |||||
Net loss (parent only) | (1,598 | ) | (845 | ) | (497 | ) | |||||
Equity in net earnings of subsidiaries | 10,591 | 16,621 | 11,069 | ||||||||
Net income | $ | 8,993 | $ | 15,776 | $ | 10,572 | |||||
PACIFIC PREMIER BANCORP, INC. | |||||||||||
SUMMARY STATEMENTS OF CASH FLOWS | |||||||||||
(Parent company only) | |||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 8,993 | $ | 15,776 | $ | 10,572 | |||||
Adjustments to reconcile net income to cash used in operating activities: | |||||||||||
Share-based compensation expense | 943 | 177 | 208 | ||||||||
Equity in net earnings of subsidiaries | (10,591 | ) | (16,621 | ) | (11,069 | ) | |||||
Increase (decrease) in accrued expenses and other liabilities | (39 | ) | 154 | (192 | ) | ||||||
Increase (decrease) in current and deferred taxes | 1,153 | 93 | 352 | ||||||||
Decrease (increase) in other assets | (504 | ) | 44 | (128 | ) | ||||||
Net cash used in operating activities | (45 | ) | (377 | ) | (257 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Dividend from Bank | — | 800 | 3,450 | ||||||||
Proceeds from issuance of common stock, net of issuance cost | 4,560 | 30,958 | — | ||||||||
Repurchase Pacific Premier Bancorp Warrants | — | — | (3,660 | ) | |||||||
Repurchase of common stock | (59 | ) | (195 | ) | (451 | ) | |||||
Proceeds from exercise of options and warrants | 90 | 237 | 274 | ||||||||
Capital contribution to Bank | (8,700 | ) | (25,000 | ) | — | ||||||
Net cash provided by (used in) financing activities | (4,109 | ) | 6,800 | (387 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (4,154 | ) | 6,423 | (644 | ) | ||||||
Cash and cash equivalents, beginning of year | 7,027 | 604 | 1,248 | ||||||||
Cash and cash equivalents, end of year | $ | 2,873 | $ | 7,027 | $ | 604 |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Acquisitions | ' | ||||||||||
Acquisitions | ' | ||||||||||
20. Acquisitions | |||||||||||
San Diego Trust Bank Acquisition | |||||||||||
On June 25, 2013, the Company completed its acquisition of San Diego Trust Bank (“SDTB”) in exchange for consideration valued at $30.6 million which consisted of $16.2 million of cash and 1,198,255 shares of the Corporation’s common stock. | |||||||||||
SDTB was a San Diego, California based state-chartered bank. The acquisition was an opportunity for the Company to acquire a banking network that complemented our existing banking franchise and expanded into a new market area. Additionally, the SDTB acquisition improved the Company’s deposit base by lowering our cost of deposits and providing an opportunity to accelerate future core deposit growth in the San Diego, California, market area. | |||||||||||
Goodwill in the amount of $5.6 million was recognized in this acquisition. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill recognized in this transaction is not deductible for income tax purposes. | |||||||||||
The following table represents the assets acquired and liabilities assumed of SDTB as of June 25, 2013 and the provisional fair value adjustments and amounts recorded by the Company in 2013 under the acquisition method of accounting: | |||||||||||
SDTB | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 30,252 | $ | — | $ | 30,252 | |||||
Investment securities | 124,960 | (155 | ) | 124,805 | |||||||
Loans, gross | 42,945 | (223 | ) | 42,722 | |||||||
Allowance for loan losses | (1,013 | ) | 1,013 | — | |||||||
Other real estate owned | 752 | — | 752 | ||||||||
Core deposit intangible | — | 2,836 | 2,836 | ||||||||
Other assets | 9,856 | — | 9,856 | ||||||||
Total assets acquired | $ | 207,752 | $ | 3,471 | $ | 211,223 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 183,901 | $ | 6 | $ | 183,907 | |||||
Deferred tax liability (asset) | (333 | ) | 1,507 | 1,174 | |||||||
Other liabilities | 1,823 | (729 | ) | 1,094 | |||||||
Total liabilities assumed | 185,391 | 784 | 186,175 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 22,361 | $ | 2,687 | 25,048 | ||||||
Consideration paid | 30,622 | ||||||||||
Goodwill recognized | $ | 5,574 | |||||||||
The Company accounted for these transactions under the acquisition method of accounting which requires purchased assets and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of the core deposit intangible, securities and deposits with the assistance of third-party valuations. The fair value of other real estate owned (“OREO”) was based on recent appraisals of the properties. | |||||||||||
The estimated fair values are subject to refinement as additional information relative to the closing date fair values become available through the measurement period, which can extend for up to one year after the closing date of the transaction. While additional significant changes to the closing date fair values are not expected, any information relative to the changes in these fair values will be evaluated to determine if such changes are due to events and circumstances that existed as of the acquisition date. During the measurement period, any such changes will be recorded as part of the closing date fair value. | |||||||||||
First Association Bank Acquisition | |||||||||||
On March 15, 2013, the Company completed its acquisition of First Association Bank (“FAB”) in exchange for consideration valued as of the closing at $57.9 million which consisted of $43.0 million of cash and 1,279,217 shares of the Corporation’s common stock. | |||||||||||
FAB was a Dallas, Texas, based bank which specialized in providing commercial banking services to home owner association (“HOA”) management companies throughout the United States. The FAB acquisition was an opportunity for the Company to acquire a highly efficient, consistently profitable and niche-focused business that complimented our banking franchise. Additionally, this acquisition improved the Company’s deposit base by lowering our cost of deposits and providing a platform to accelerate future core deposit growth from HOAs. | |||||||||||
Goodwill in the amount of $11.9 million was recognized in this acquisition. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill recognized in this transaction is not deductible for income tax purposes. | |||||||||||
The following table represents the assets acquired and liabilities assumed of FAB as of March 15, 2013, the provisional fair value adjustments and amounts recorded by the Company in 2013 under the acquisition method of accounting: | |||||||||||
FAB | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 167,663 | $ | — | $ | 167,663 | |||||
Investment securities | 219,913 | 2,478 | 222,391 | ||||||||
Loans, gross | 26,264 | 158 | 26,422 | ||||||||
Allowance for loan losses | (224 | ) | 224 | — | |||||||
Core deposit intangible | — | 1,930 | 1,930 | ||||||||
Other assets | 5,823 | — | 5,823 | ||||||||
Total assets acquired | $ | 419,439 | $ | 4,790 | $ | 424,229 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 356,737 | $ | 81 | $ | 356,818 | |||||
Borrowings | 16,905 | — | 16,905 | ||||||||
Deferred tax liability | — | 3,918 | 3,918 | ||||||||
Other Liabilities | 536 | — | 536 | ||||||||
Total liabilities assumed | 374,178 | 3,999 | 378,177 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 45,261 | $ | 791 | 46,052 | ||||||
Consideration paid | 57,906 | ||||||||||
Goodwill recognized | $ | 11,854 | |||||||||
There were no purchased credit impaired loans acquired from FAB or SDTB. For loans acquired from FAB and SDTB, the contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates were as follows: | |||||||||||
Acquired Loans | |||||||||||
(dollars in thousands) | |||||||||||
Contractual amounts due | $ | 79,358 | |||||||||
Cash flows not expected to be collected | — | ||||||||||
Expected cash flows | 79,358 | ||||||||||
Interest component of expected cash flows | 10,543 | ||||||||||
Fair value of acquired loans | $ | 68,815 | |||||||||
In accordance with generally accepted accounting principles there was no carryover of the allowance for loan losses that had been previously recorded by FAB or SDTB. | |||||||||||
The operating results of the Company for the twelve months ending December 31, 2013 include the operating results of FAB and SDTB since their respective acquisition dates. The following table presents the net interest and other income, net income and earnings per share as if the merger with FAB and SDTB were effective as of January 1, 2013 and 2012. There were no material, nonrecurring adjustments to the pro forma net interest and other income, net income and earnings per share presented below: | |||||||||||
Twelve months Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Net interest and other income | $ | 72,021 | $ | 71,606 | |||||||
Net income | 9,852 | 18,713 | |||||||||
Basic earnings per share | $ | 0.62 | $ | 1.43 | |||||||
Diluted earnings per share | $ | 0.59 | $ | 1.39 | |||||||
Palm Desert National Bank | |||||||||||
Effective April 27, 2012, the Bank acquired certain assets and assumed certain liabilities of Palm Desert National Bank from the FDIC as receiver for Palm Desert National, pursuant to the terms of a purchase and assumption agreement entered into by the Bank and the FDIC on April 27, 2012. The Palm Desert National Acquisition included one branch of Palm Desert National that became a branch of the Bank upon consummation of the Palm Desert National Acquisition. The Bank did not enter into any loss sharing agreements with the FDIC in connection the Palm Desert national Acquisition. As a result of the Palm Desert National Acquisition, the Bank acquired and recorded at the acquisition date certain assets with a fair value of approximately $120.9 million, including: | |||||||||||
· $63.8 million of loans; | |||||||||||
· $39.5 million of cash and cash equivalents; | |||||||||||
· $11.5 million of OREO; | |||||||||||
· $1.5 million in investment securities, including Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank stock; | |||||||||||
· $840,000 of a core deposit intangible; and | |||||||||||
· $3.8 million of other types of assets. | |||||||||||
Also as a result of the Palm Desert National Acquisition, the Bank assumed and recorded at acquisition date certain liabilities with a fair value of approximately $118.0 million, including: | |||||||||||
· $50.1 million in deposit transaction accounts; | |||||||||||
· $30.8 million in retail certificates of deposit; | |||||||||||
· $34.1 million in whole sale certificates of deposits, which were purposefully run off during the second quarter of 2012; | |||||||||||
· $2.4 million in deferred tax liability; and | |||||||||||
· $578,000 of other liabilities. | |||||||||||
The fair values of the assets acquired and liabilities assumed were determined based on the requirements of FASB ASC Topic 820: Fair Value Measurements and Disclosures. Final valuation and purchase price allocation adjustments are reflected in the table below: | |||||||||||
April 27, 2012 | |||||||||||
(dollars in thousands) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 22,071 | |||||||||
Securities available for sale | 100 | ||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 1,390 | ||||||||||
Loans | 63,772 | ||||||||||
Other real estate owned | 11,533 | ||||||||||
Core deposit intangible | 840 | ||||||||||
Accrued interest receivable and other assets | 3,658 | ||||||||||
Total Assets Acquired | $ | 103,364 | |||||||||
Liabilities | |||||||||||
Deposits | $ | 115,582 | |||||||||
Other | 29 | ||||||||||
Total Liabilities Assumed | 115,611 | ||||||||||
Excess of liabilities assumed over assets acquired | 12,247 | ||||||||||
Cash received from FDIC | 17,420 | ||||||||||
FDIC receivable | 167 | ||||||||||
Recorded gain on acquisition | $ | 5,340 | |||||||||
Canyon National Bank | |||||||||||
Effective February 11, 2011, the Bank acquired certain assets and assumed certain liabilities of Canyon National Bank from the FDIC as receiver for Canyon National | |||||||||||
· $149.7 million of loans; | |||||||||||
· $16.1 million of a FDIC receivable; | |||||||||||
· $13.2 million of cash and cash equivalents; | |||||||||||
· $12.8 million of investment securities; | |||||||||||
· $12.0 million of OREO; | |||||||||||
· $2.3 million of a core deposit intangibles; | |||||||||||
· $1.5 million of other assets; and | |||||||||||
· $1.3 million of FHLB and Federal Reserve Bank stock. | |||||||||||
Also as a result of the Canyon National Acquisition, the Bank assumed and recorded at acquisition date certain liabilities with a fair value of approximately $206.6 million, including: | |||||||||||
· $204.7 million of deposits; | |||||||||||
· $1.9 million in deferred tax liability; and | |||||||||||
· 39,000 of other liabilities. | |||||||||||
The fair values of the assets acquired and liabilities assumed were determined based on the requirements of FASB ASC Topic 820: Fair Value Measurements and Disclosures. Final valuation and purchase price allocation adjustments are reflected in the table below: | |||||||||||
February 11, 2011 | |||||||||||
(dollars in thousands) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 13,167 | |||||||||
Securities available for sale | 12,753 | ||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 1,323 | ||||||||||
Loans | 149,740 | ||||||||||
Other real estate owned | 11,953 | ||||||||||
Core deposit intangible | 2,270 | ||||||||||
Accrued interest receivable and other assets | 1,640 | ||||||||||
Total Assets Acquired | $ | 192,846 | |||||||||
Liabilities | |||||||||||
Deposits | $ | 204,678 | |||||||||
Other | 39 | ||||||||||
Total Liabilities Assumed | 204,717 | ||||||||||
Excess of liabilities assumed over assets acquired | 11,871 | ||||||||||
Cash received from FDIC | 13,222 | ||||||||||
FDIC receivable | 2,838 | ||||||||||
Recorded gain on acquisition | $ | 4,189 |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
21. Subsequent Events | |
Pacific Premier Bancorp, Inc. and IFC | |
On November 18, 2013, the Company announced that it had entered into a definitive agreement to acquire privately held Infinity Franchise Holdings, LLC (“Infinity Holdings”) and its wholly owned operating subsidiary Infinity Franchise Capital, LLC (“IFC” and together with Infinity Holdings, “Infinity”), a national lender to franchisees in the quick service restaurant (“QSR”) industry, and other direct and indirect subsidiaries utilized in its business. The acquisition was completed on January 30, 2014, whereby we acquired $80.8 million in assets, $709,000 in liabilities and paid off their credit facility of $67.6 million. Infinity had no delinquent loans or adversely classified assets as of the acquisition date. The acquisition of Infinity is expected to further diversify our loan portfolio with commercial and industrial and owner-occupied commercial real estate loans, to deploy excess liquidity into higher yielding assets, to positively impact our net interest margin and to further leverage our strong capital base. The QSR franchisee lending business is a niche market that provides attractive growth opportunities for the Company in the future. The value of the total consideration paid for the Infinity acquisition was $16.9 million, which consisted of $9.0 million paid in cash and the issuance of 562,469 shares of the Corporation’s stock, which was valued at $16.02 per share as measured by the 10-day average closing price immediately prior to closing of the transaction. The acquisition is expected to be accretive to PPBI’s 2014 earnings per share. | |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Description of Business and Summary of Significant Accounting Policies | ' |
Principles of Consolidation | ' |
Principles of Consolidation—The consolidated financial statements include the accounts of Pacific Premier Bancorp, Inc. (the ‘‘Corporation’’) and its wholly owned subsidiary, Pacific Premier Bank (the ‘‘Bank’’) (collectively, the ‘‘Company’’). The Company accounts for its investments in its wholly-owned special purpose entity, PPBI Statutory Trust I ( the “Trust”), using the equity method under which the subsidiary’s net earnings are recognized in the Company’s Statement of Income and the investment in the Trust is included in Other Assets on the Company’s Consolidated Statements of Financial Condition. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents—Cash and cash equivalents include cash on hand, due from banks and fed funds sold. At December 31, 2013, $38.3 million was allocated to cash reserves required by the Board of Governors of the Federal Reserve System (“Federal Reserve”) for depository institutions based on the amount of deposits held. The Company maintains amounts due from banks that exceed federally insured limits. The Company has not experienced any losses in such accounts. | |
Securities | ' |
Securities—The Company has established written guidelines and objectives for its investing activities. At the time of purchase, management designates the security as either held to maturity, available for sale or held for trading based on the Company’s investment objectives, operational needs and intent. The investments are monitored to ensure that those activities are consistent with the established guidelines and objectives. | |
Securities Held to Maturity—Investments in debt securities that management has the positive intent and ability to hold to maturity are reported at cost and adjusted for unamortized premiums and unearned discounts that are recognized in interest income using the interest method over the period to maturity. If the cost basis of these securities is determined to be other than temporarily impaired, the amount of the impairment is charged to operations. The Company had no investment securities classified as held to maturity at December 31, 2013 or 2012. | |
Securities Available for Sale—Investments in debt securities that management has no immediate plan to sell, but which may be sold in the future, are valued at fair value. Premiums and discounts are amortized using the interest method over the remaining period to the call date for premiums or contractual maturity for discounts and, in the case of mortgage-backed securities, adjusted for anticipated prepayments. Unrealized holding gains and losses, net of tax, are excluded from earnings and reported as a separate component of stockholders’ equity as accumulated other comprehensive income. If the cost basis of the security is deemed other than temporarily impaired the amount of the impairment is charged to operations. Realized gains and losses on the sales of securities are determined on the specific identification method, recorded on a trade date basis based on the amortized cost basis of the specific security and are included in noninterest income as net gain (loss) on investment securities. | |
Securities Held for Trading—Securities held for trading are carried at fair value. Realized and unrealized gains and losses are reflected in earnings. The Company had no investment securities classified as held for trading at December 31, 2013 or 2012. | |
Impairment of Investments | ' |
Impairment of Investments—Declines in the fair value of individual held to maturity and available for sale securities below their cost that are OTTI result in write-downs of the individual securities to their fair value. The related write-downs are included in operations as realized losses in the category of other-than-temporary impairment loss on investment securities, net. In estimating OTTI losses, management considers: (i) the length of time and the extent to which the market value has been less than cost; (ii) the financial condition and near-term prospects of the issuer; (iii) the intent and ability of the Company to retain its investment in a security for a period of time sufficient to allow for any anticipated recovery in market value; and (iv) general market conditions which reflect prospects for the economy as a whole, including interest rates and sector credit spreads. | |
Loans Held for Sale | ' |
Loans Held for Sale—The Company identifies at origination those loans which foreseeably may be sold prior to maturity as loans held for sale and records them at the lower of amortized cost or fair value. Premiums paid and discounts obtained on such loans are deferred as an adjustment to the carrying value of the loans until the loans are sold. Interest is recognized as revenue when earned according to the terms of the loans and when, in the opinion of management, it is collectible. Loans are evaluated for collectability, and if appropriate, previously accrued interest is reversed. The Company may sell loans which had been held for investment. In such occurrences, the loans are transferred to the held for sale portfolio at the lower of amortized cost or fair value. If any part of a decline in value of the loans transferred is due to credit deterioration, that decline is recorded as a charge-off to the ALLL at the time of transfer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the basis of the loans sold. | |
Loans Held for Investment | ' |
Loans Held for Investment—Loans held for investment are carried at amortized cost, net of discounts and premiums, deferred loan origination fees and costs and ALLL. Net deferred loan origination fees and costs on loans are amortized or accreted using the interest method over the expected life of the loans. Amortization of deferred loan fees and costs are discontinued for loans placed on nonaccrual. Any remaining deferred fees or costs and prepayment fees associated with loans that payoff prior to contractual maturity are included in loan interest income in the period of payoff. Loan commitment fees received to originate or purchase a loan are deferred and, if the commitment is exercised, recognized over the life of the loan as an adjustment of yield or, if the commitment expires unexercised, recognized as income upon expiration of the commitment. Loans held for investment are not adjusted to the lower of cost or estimated market value because it is management’s intention, and the Company has the ability, to hold these loans to maturity. | |
Interest on loans is credited to income as earned. Interest receivable is accrued only if deemed collectible. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when principal or interest is past due 90 days based on contractual terms of the loan or when, in the opinion of management, there is reasonable doubt as to collection of interest. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are applied as a reduction to the loan principal balance. Interest accruals are resumed on such loans only when they are brought current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to all principal and interest. | |
A loan is considered to be impaired when it is probable that the Company will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Measurement of impairment is based on the loan’s expected future cash flows discounted at the loan’s effective interest rate, measured by reference to an observable market value, if one exists, or the fair value of the collateral if the loan is deemed collateral dependent. The Company selects the measurement method on a loan-by-loan basis except those loans deemed collateral dependent. All loans are generally charged-off at such time the loan is classified as a loss. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses—The Company maintains an ALLL at a level deemed appropriate by management to provide for known or inherent risks in the portfolio at the consolidated statements of financial condition date. The Company has implemented and adheres to an internal asset review system and loss allowance methodology designed to provide for the detection of problem assets and an adequate allowance to cover loan losses. Management’s determination of the adequacy of the loan loss allowance is based on an evaluation of the composition of the portfolio, actual loss experience, industry charge-off experience on income property loans, current economic conditions, and other relevant factors in the area in which the Company’s lending and real estate activities are based. These factors may affect the borrowers’ ability to pay and the value of the underlying collateral. The allowance is calculated by applying loss factors to loans held for investment according to loan program type and loan classification. The loss factors are established based primarily upon the Bank’s historical loss experience and the industry charge-off experience and are evaluated on a quarterly basis. Various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. In the opinion of management, and in accordance with the credit loss allowance methodology, the present allowance is considered adequate to absorb estimable and probable credit losses. Additions and reductions to the allowance are reflected in current operations. Charge-offs to the allowance are made when specific assets are considered uncollectible or are transferred to other real estate owned and the fair value of the property is less than the loan’s recorded investment. Recoveries are credited to the allowance. | |
Although management uses the best information available to make these estimates, future adjustments to the allowance may be necessary due to economic, operating, regulatory and other conditions that may be beyond the Company’s control. | |
Other Real Estate Owned | ' |
Other Real Estate Owned—The Company obtains an appraisal and/or market valuation on all other real estate owned at the time of possession. Real estate properties acquired through, or in lieu of, loan foreclosure are recorded at fair value less cost to sell with any excess loan balance charged against the allowance for estimated loan losses. After foreclosure, valuations are periodically performed by management. Any subsequent fair value losses are recorded to other real estate owned operations with a corresponding write-down to the asset. All legal fees and direct costs, including foreclosure and other related costs are expensed as incurred. Revenue and expenses from continued operations are included in other real estate owned operations in the consolidated statement of income. | |
Premises and Equipment | ' |
Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which range from forty years for buildings, seven years for furniture, fixtures and equipment, and three years for computer and telecommunication equipment. The cost of leasehold improvements is amortized using the straight-line method over the shorter of the estimated useful life of the asset or the term of the related leases. | |
The Company periodically evaluates the recoverability of long-lived assets, such as premises and equipment, to ensure the carrying value has not been impaired. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | |
Securities Sold Under Agreements to Repurchase | ' |
Securities Sold Under Agreements to Repurchase—The Company enters into sales of securities under agreement to repurchase. These agreements are treated as financing arrangements and, accordingly, the obligations to repurchase the securities sold are reflected as liabilities in the Company’s consolidated financial statements. The securities collateralizing these agreements are delivered to several major national brokerage firms who arranged the transactions. The securities are reflected as assets in the Company’s consolidated financial statements. The brokerage firms may loan such securities to other parties in the normal course of their operations and agree to return the identical security to the Company at the maturity of the agreements. | |
Subordinated Debentures | ' |
Subordinated Debentures—Long-term borrowings are carried at cost, adjusted for amortization of premiums and accretion of discounts which are recognized in interest expense using the interest method. Debt issuance costs are recognized in interest expense using the interest method over the life of the instrument. | |
Income Taxes | ' |
Income Taxes—Deferred tax assets and liabilities are recorded for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the asset liability method. In estimating future tax consequences, all expected future events other than enactments of changes in the tax law or rates are considered. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are to be recognized for temporary differences that will result in deductible amounts in future years and for tax carryforwards if, in the opinion of management, it is more likely than not that the deferred tax assets will be realized. At December 31, 2013, there was no valuation allowance deemed necessary against the Company’s deferred tax asset. | |
Comprehensive Income | ' |
Comprehensive Income—Comprehensive income is reported in addition to net income for all periods presented. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income (loss) that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company’s available-for-sale investment securities are required to be included in other comprehensive income or loss. Total comprehensive income (loss) and the components of accumulated other comprehensive income or loss are presented in the Consolidated Statement of Stockholders’ Equity and Consolidated Statement of Comprehensive Income. | |
Share-Based Compensation | ' |
Share-Based Compensation—The Company recognizes in the income statement the grant-date fair value of stock options and other equity-based forms of compensation issued to employees over the employees’ requisite service period (generally the vesting period). | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
During 2013, the following accounting guidance relevant to the Company has been issued by the Financial Accounting Standards Board (the “FASB”), and/or became effective. | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 affects all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information is intended to enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. The amended guidance is effective for interim and annual periods beginning after January 1, 2013 and should be applied retrospectively to all periods presented. The adoption of the disclosure requirements had no impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The adoption of the disclosure requirements had no impact on the Company’s consolidated financial statements. | |
Reclassifications | ' |
Reclassifications —Certain amounts reflected in the 2012 and 2011 consolidated financial statements have been reclassified where practicable, to conform to the presentation for 2013. These classifications are of a normal recurring nature. |
Regulatory_Capital_Requirement1
Regulatory Capital Requirements and Other Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Regulatory Capital Requirements and Other Regulatory Matters | ' | ||||||||||||||||
Schedule of Company's and Bank's actual capital amounts and ratios | ' | ||||||||||||||||
Actual | Minimum Required for | Required to be Well | |||||||||||||||
Capital Adequacy Purposes | Capitalized Under Prompt | ||||||||||||||||
Corrective Action | |||||||||||||||||
Regulations | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(dollars in thousands) | |||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Tier 1 Capital (to adjusted tangible assets) | |||||||||||||||||
Bank | $ | 160,473 | 10.03 | % | $ | 64,025 | 4 | % | $ | 80,031 | 5 | % | |||||
Consolidated | 163,105 | 10.29 | % | 63,431 | 4 | % | N/A | N/A | |||||||||
Tier 1 Risk-Based Capital (to risk-weighted assets) | |||||||||||||||||
Bank | 160,473 | 12.34 | % | 52,021 | 4 | % | 78,031 | 6 | % | ||||||||
Consolidated | 163,105 | 12.54 | % | 52,046 | 4 | % | N/A | N/A | |||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||
Bank | 168,673 | 12.97 | % | 104,042 | 8 | % | 130,052 | 10 | % | ||||||||
Consolidated | 171,305 | 13.17 | % | 104,092 | 8 | % | N/A | N/A | |||||||||
At December 31, 2012 | |||||||||||||||||
Tier 1 Capital (to adjusted tangible assets) | |||||||||||||||||
Bank | $ | 129,055 | 12.07 | % | $ | 42,773 | 4 | % | $ | 53,466 | 5 | % | |||||
Consolidated | 135,883 | 12.71 | % | 42,771 | 4 | % | N/A | N/A | |||||||||
Tier 1 Risk-Based Capital (to risk-weighted assets) | |||||||||||||||||
Bank | 129,055 | 12.99 | % | 39,750 | 4 | % | 59,625 | 6 | % | ||||||||
Consolidated | 135,883 | 13.61 | % | 39,924 | 4 | % | N/A | N/A | |||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||
Bank | 137,049 | 13.79 | % | 79,500 | 8 | % | 99,375 | 10 | % | ||||||||
Consolidated | 144,004 | 14.43 | % | 79,848 | 8 | % | N/A | N/A | |||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||||||||
Schedule of amortized cost and estimated fair value of securities | ' | |||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 73 | $ | 8 | $ | — | $ | 81 | ||||||||||||||||||||||||
Municipal bonds | 95,388 | 589 | (1,850 | ) | 94,127 | |||||||||||||||||||||||||||
Mortgage-backed securities | 165,857 | 12 | (3,988 | ) | 161,881 | |||||||||||||||||||||||||||
Total securities available for sale | 261,318 | 609 | (5,838 | ) | 256,089 | |||||||||||||||||||||||||||
FHLB stock | 7,483 | — | — | 7,483 | ||||||||||||||||||||||||||||
Federal Reserve Bank stock/TIB | 7,967 | — | — | 7,967 | ||||||||||||||||||||||||||||
Total equities held at cost | 15,450 | — | — | 15,450 | ||||||||||||||||||||||||||||
Total securities | $ | 276,768 | $ | 609 | $ | (5,838 | ) | $ | 271,539 | |||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 147 | $ | 12 | $ | — | $ | 159 | ||||||||||||||||||||||||
Municipal bonds | 25,401 | 1,186 | (1 | ) | 26,586 | |||||||||||||||||||||||||||
Mortgage-backed securities | 56,641 | 1,162 | (482 | ) | 57,321 | |||||||||||||||||||||||||||
Total securities available for sale | 82,189 | 2,360 | (483 | ) | 84,066 | |||||||||||||||||||||||||||
FHLB stock | 9,228 | — | — | 9,228 | ||||||||||||||||||||||||||||
Federal Reserve Bank stock | 2,019 | — | — | 2,019 | ||||||||||||||||||||||||||||
Total equities held at cost | 11,247 | — | — | 11,247 | ||||||||||||||||||||||||||||
Total securities | $ | 93,436 | $ | 2,360 | $ | (483 | ) | $ | 95,313 | |||||||||||||||||||||||
Schedule of number, fair value and gross unrealized holding losses of the Company's investment securities by investment category and length of time that the securities have been in a continuous loss position | ' | |||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 133 | $ | 61,524 | $ | (1,850 | ) | — | $ | — | $ | — | 133 | $ | 61,524 | $ | (1,850 | ) | |||||||||||||||
Mortgage-backed securities | 45 | 140,704 | (3,075 | ) | 1 | 12,607 | (913 | ) | 46 | 153,311 | (3,988 | ) | ||||||||||||||||||||
Total | 178 | $ | 202,228 | $ | (4,925 | ) | 1 | $ | 12,607 | $ | (913 | ) | 179 | $ | 214,835 | $ | (5,838 | ) | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or Longer | Total | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Fair | Holding | Fair | Holding | Fair | Holding | |||||||||||||||||||||||||||
Number | Value | Losses | Number | Value | Losses | Number | Value | Losses | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Municipal bonds | 1 | $ | 292 | $ | (1 | ) | — | $ | — | $ | — | 1 | $ | 292 | $ | (1 | ) | |||||||||||||||
Mortgage-backed securities | 2 | 15,128 | (152 | ) | 31 | 1,012 | (330 | ) | 33 | 16,140 | (482 | ) | ||||||||||||||||||||
Total | 3 | $ | 15,420 | $ | (153 | ) | 31 | $ | 1,012 | $ | (330 | ) | 34 | $ | 16,432 | $ | (483 | ) | ||||||||||||||
Schedule of amortized cost and estimated fair value of investment securities available for sale by contractual maturity | ' | |||||||||||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||||||||
One Year | More than One | More than Five Years | More than | |||||||||||||||||||||||||||||
or Less | Year to Five Years | to Ten Years | Ten Years | Total | ||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | 73 | $ | 81 | $ | — | $ | — | $ | — | $ | — | $ | 73 | $ | 81 | ||||||||||||
Municipal bonds | — | — | 9,940 | 9,909 | 43,685 | 43,173 | 41,763 | 41,045 | 95,388 | 94,127 | ||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | 13,390 | 13,235 | 152,467 | 148,646 | 165,857 | 161,881 | ||||||||||||||||||||||
Total investment securities available for sale | — | — | 10,013 | 9,990 | 57,075 | 56,408 | 194,230 | 189,691 | 261,318 | 256,089 | ||||||||||||||||||||||
Stock: | ||||||||||||||||||||||||||||||||
FHLB | 7,483 | 7,483 | — | — | — | — | — | — | 7,483 | 7,483 | ||||||||||||||||||||||
Federal Reserve Bank/TIB | 7,967 | 7,967 | — | — | — | — | — | — | 7,967 | 7,967 | ||||||||||||||||||||||
Total stock | 15,450 | 15,450 | — | — | — | — | — | — | 15,450 | 15,450 | ||||||||||||||||||||||
Total securities | $ | 15,450 | $ | 15,450 | $ | 10,013 | $ | 9,990 | $ | 57,075 | $ | 56,408 | $ | 194,230 | $ | 189,691 | $ | 276,768 | $ | 271,539 |
Loans_Held_for_Investment_Tabl
Loans Held for Investment (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Loans Held for Investment | ' | ||||||||||||||||||||||
Schedule of components of loans held for investment | ' | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 187,035 | $ | 115,354 | |||||||||||||||||||
Commercial owner occupied | 221,089 | 150,934 | |||||||||||||||||||||
SBA | 10,659 | 6,882 | |||||||||||||||||||||
Warehouse facilities | 87,517 | 195,761 | |||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 333,544 | 253,409 | |||||||||||||||||||||
Multi-family | 233,689 | 156,424 | |||||||||||||||||||||
One-to-four family | 145,235 | 97,463 | |||||||||||||||||||||
Construction | 13,040 | — | |||||||||||||||||||||
Land | 7,605 | 8,774 | |||||||||||||||||||||
Other loans | 3,839 | 1,193 | |||||||||||||||||||||
Total gross loans | 1,243,252 | 986,194 | |||||||||||||||||||||
Plus (less): | |||||||||||||||||||||||
Loans held for sale | (3,147 | ) | (3,681 | ) | |||||||||||||||||||
Deferred loan origination fees-net | 18 | (306 | ) | ||||||||||||||||||||
Allowance for estimated loan losses | (8,200 | ) | (7,994 | ) | |||||||||||||||||||
Loans held for investment, net | $ | 1,231,923 | $ | 974,213 | |||||||||||||||||||
Summary of purchased credit impaired loans | ' | ||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 80 | $ | 308 | $ | 117 | |||||||||||||||||
Commercial owner occupied | 870 | 1,221 | 1,930 | ||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,009 | 2,447 | 3,297 | ||||||||||||||||||||
One-to-four family | 18 | 30 | 1,092 | ||||||||||||||||||||
Land | — | 2,313 | 52 | ||||||||||||||||||||
Total purchase credit impaired | $ | 1,977 | $ | 6,319 | $ | 6,488 | |||||||||||||||||
Summary of accretable yield on purchased credit impaired | ' | ||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at the beginning of period | $ | 2,276 | $ | 3,248 | $ | — | |||||||||||||||||
Accretable yield at acquisition | — | 3,908 | 4,692 | ||||||||||||||||||||
Accretion | (557 | ) | (4,846 | ) | (521 | ) | |||||||||||||||||
Disposals and other | (648 | ) | (66 | ) | (1,464 | ) | |||||||||||||||||
Change in accretable yield | 605 | 32 | 541 | ||||||||||||||||||||
Balance at the end of period | $ | 1,676 | $ | 2,276 | $ | 3,248 | |||||||||||||||||
Summary of Company's investment in impaired loans | ' | ||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||
Recorded | Unpaid | With Specific | Without Specific | Specific | Average | Interest | |||||||||||||||||
Investment | Principal | Allowance | Allowance | Allowance for Impaired | Recorded | Income | |||||||||||||||||
Balance | Loans | Investment | Recognized | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 255 | $ | 17 | |||||||||
Commercial owner occupied | 747 | 872 | — | 747 | — | 177 | 66 | ||||||||||||||||
SBA | 14 | 246 | — | 14 | — | 70 | 28 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 983 | 1,202 | 28 | 955 | 1 | 984 | 68 | ||||||||||||||||
Multi-family | — | — | — | — | — | 108 | 2 | ||||||||||||||||
One-to-four family | 683 | 746 | 278 | 405 | 104 | 743 | 44 | ||||||||||||||||
Totals | $ | 2,427 | $ | 3,066 | $ | 306 | $ | 2,121 | $ | 105 | $ | 2,337 | $ | 225 | |||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 593 | $ | 707 | $ | 287 | $ | 306 | $ | 270 | $ | 203 | $ | 29 | |||||||||
Commercial owner occupied | — | — | — | — | — | 444 | — | ||||||||||||||||
SBA | 259 | 810 | — | 259 | — | 468 | 21 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 670 | 746 | — | 670 | — | 1,031 | 59 | ||||||||||||||||
Multi-family | 266 | 315 | — | 266 | — | 1,123 | 22 | ||||||||||||||||
One-to-four family | 948 | 960 | 541 | 407 | 395 | 720 | 59 | ||||||||||||||||
Totals | $ | 2,736 | $ | 3,538 | $ | 828 | $ | 1,908 | $ | 665 | $ | 3,989 | $ | 190 | |||||||||
December 31, 2011 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 1,138 | $ | 1,321 | $ | — | $ | 1,138 | $ | — | $ | 373 | $ | 62 | |||||||||
Commercial owner occupied | 1,641 | 1,771 | — | 1,641 | — | 1,635 | 64 | ||||||||||||||||
SBA | 773 | 2,427 | — | 773 | — | 887 | 68 | ||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 1,495 | 1,592 | — | 1,495 | — | 2,283 | 198 | ||||||||||||||||
Multi-family | 1,423 | 1,450 | — | 1,423 | — | 2,309 | 88 | ||||||||||||||||
One-to-four family | 521 | 705 | — | 521 | — | 311 | 47 | ||||||||||||||||
Land | — | — | — | — | — | 11 | 1 | ||||||||||||||||
Other loans | — | — | — | — | — | 2 | — | ||||||||||||||||
Totals | $ | 6,991 | $ | 9,266 | $ | — | $ | 6,991 | $ | — | $ | 7,811 | $ | 528 | |||||||||
Summary of loan portfolio by the Company's internal risk grading system | ' | ||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
December 31, 2013 | (in thousands) | ||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 184,247 | $ | 12 | $ | 2,776 | $ | 187,035 | |||||||||||||||
Commercial owner occupied | 207,872 | 1,217 | 12,000 | 221,089 | |||||||||||||||||||
SBA | 10,659 | — | — | 10,659 | |||||||||||||||||||
Warehouse facilities | 87,517 | — | — | 87,517 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 329,538 | 352 | 3,654 | 333,544 | |||||||||||||||||||
Multi-family | 232,661 | 511 | 517 | 233,689 | |||||||||||||||||||
One-to-four family | 144,152 | — | 1,083 | 145,235 | |||||||||||||||||||
Construction | 13,040 | — | — | 13,040 | |||||||||||||||||||
Land | 7,605 | — | — | 7,605 | |||||||||||||||||||
Other loans | 3,834 | — | 5 | 3,839 | |||||||||||||||||||
Totals | $ | 1,221,125 | $ | 2,092 | $ | 20,035 | $ | 1,243,252 | |||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | Total Gross | ||||||||||||||||||||||
Pass | Mention | Substandard | Loans | ||||||||||||||||||||
December 31, 2012 | (in thousands) | ||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 111,895 | $ | 92 | $ | 3,367 | $ | 115,354 | |||||||||||||||
Commercial owner occupied | 136,330 | 2,674 | 11,930 | 150,934 | |||||||||||||||||||
SBA | 6,819 | — | 63 | 6,882 | |||||||||||||||||||
Warehouse facilities | 195,761 | — | — | 195,761 | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 240,585 | 687 | 12,137 | 253,409 | |||||||||||||||||||
Multi-family | 143,003 | 11,583 | 1,838 | 156,424 | |||||||||||||||||||
One-to-four family | 96,061 | — | 1,402 | 97,463 | |||||||||||||||||||
Land | 8,762 | — | 12 | 8,774 | |||||||||||||||||||
Other loans | 1,177 | — | 16 | 1,193 | |||||||||||||||||||
Totals | $ | 940,393 | $ | 15,036 | $ | 30,765 | $ | 986,194 | |||||||||||||||
Schedule of delinquencies in the Company's loan portfolio | ' | ||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||
Non- | |||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
December 31, 2013 | (in thousands) | ||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 187,035 | $ | — | $ | — | $ | — | $ | 187,035 | $ | — | |||||||||||
Commercial owner occupied | 219,875 | 768 | — | 446 | 221,089 | 747 | |||||||||||||||||
SBA | 10,645 | — | — | 14 | 10,659 | 14 | |||||||||||||||||
Warehouse facilities | 87,517 | — | — | — | 87,517 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 332,984 | — | — | 560 | 333,544 | 983 | |||||||||||||||||
Multi-family | 233,689 | — | — | — | 233,689 | — | |||||||||||||||||
One-to-four family | 145,041 | 71 | — | 123 | 145,235 | 507 | |||||||||||||||||
Construction | 13,040 | — | — | — | 13,040 | — | |||||||||||||||||
Land | 7,605 | — | — | — | 7,605 | — | |||||||||||||||||
Other loans | 3,709 | 130 | — | — | 3,839 | — | |||||||||||||||||
Totals | $ | 1,241,140 | $ | 969 | $ | — | $ | 1,143 | $ | 1,243,252 | $ | 2,251 | |||||||||||
Days Past Due | |||||||||||||||||||||||
Non- | |||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Total | Accruing | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 115,078 | $ | — | $ | 58 | $ | 218 | $ | 115,354 | $ | 347 | |||||||||||
Commercial owner occupied | 150,689 | — | 245 | — | 150,934 | 14 | |||||||||||||||||
SBA | 6,697 | — | — | 185 | 6,882 | 259 | |||||||||||||||||
Warehouse facilities | 195,761 | — | — | — | 195,761 | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial non-owner occupied | 253,409 | — | — | — | 253,409 | 670 | |||||||||||||||||
Multi-family | 156,424 | — | — | — | 156,424 | 266 | |||||||||||||||||
One-to-four family | 97,283 | 101 | — | 79 | 97,463 | 522 | |||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||
Land | 8,774 | — | — | — | 8,774 | 127 | |||||||||||||||||
Other loans | 1,188 | 5 | — | — | 1,193 | — | |||||||||||||||||
Totals | $ | 985,303 | $ | 106 | $ | 303 | $ | 482 | $ | 986,194 | $ | 2,205 | |||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||
Summary of allocation of the allowance as well as the activity in the allowance attributed to various segments in the loan portfolio | ' | ||||||||||||||||||||||||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi-family | One-to-four | Construction | Land | Other loans | Total | |||||||||||||||||||||||||
and | owner | non-owner | family | ||||||||||||||||||||||||||||||||
industrial | occupied | occupied | |||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,310 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 862 | $ | — | $ | 31 | $ | 52 | $ | 7,994 | |||||||||||||
Charge-offs | (509 | ) | (232 | ) | (143 | ) | — | (756 | ) | (101 | ) | (272 | ) | — | — | (18 | ) | (2,031 | ) | ||||||||||||||||
Recoveries | 138 | — | 50 | — | — | — | 47 | — | — | 142 | 377 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 1,029 | 538 | 165 | (1,152 | ) | 955 | (227 | ) | 462 | 136 | 96 | (142 | ) | 1,860 | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 1,968 | $ | 1,818 | $ | 151 | $ | 392 | $ | 1,658 | $ | 817 | $ | 1,099 | $ | 136 | $ | 127 | $ | 34 | $ | 8,200 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 104 | $ | — | $ | — | $ | — | $ | 105 | |||||||||||||
General portfolio allocation | 1,968 | 1,818 | 151 | 392 | 1,657 | 817 | 995 | 136 | 127 | 34 | 8,095 | ||||||||||||||||||||||||
Loans individually evaluated for impairment | — | 747 | 14 | — | 983 | — | 683 | — | — | — | 2,427 | ||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment | 0 | % | 0 | % | 0 | % | 0 | % | 0.1 | % | 0 | % | 15.23 | % | 0 | % | 0 | % | 0 | % | 4.33 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 187,035 | $ | 220,342 | $ | 10,645 | $ | 87,517 | $ | 332,561 | $ | 233,689 | $ | 144,552 | $ | 13,040 | $ | 7,605 | $ | 3,839 | $ | 1,240,825 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.05 | % | 0.83 | % | 1.42 | % | 0.45 | % | 0.5 | % | 0.35 | % | 0.69 | % | 1.04 | % | 1.67 | % | 0.89 | % | 0.65 | % | |||||||||||||
Total gross loans | $ | 187,035 | $ | 221,089 | $ | 10,659 | $ | 87,517 | $ | 333,544 | $ | 233,689 | $ | 145,235 | $ | 13,040 | $ | 7,605 | $ | 3,839 | $ | 1,243,252 | |||||||||||||
Total allowance to gross loans | 1.05 | % | 0.82 | % | 1.42 | % | 0.45 | % | 0.5 | % | 0.35 | % | 0.76 | % | 1.04 | % | 1.67 | % | 0.89 | % | 0.66 | % | |||||||||||||
Commercial | Commercial | SBA | Warehouse | Commercial | Multi-family | One-to-four | Construction | Land | Other loans | Total | |||||||||||||||||||||||||
and | owner | non-owner | family | ||||||||||||||||||||||||||||||||
industrial | occupied | occupied | |||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,361 | $ | 1,119 | $ | 80 | $ | 1,347 | $ | 1,287 | $ | 2,281 | $ | 931 | $ | — | $ | 39 | $ | 77 | $ | 8,522 | |||||||||||||
Charge-offs | (512 | ) | (265 | ) | (132 | ) | — | (88 | ) | — | (371 | ) | — | (145 | ) | (2 | ) | (1,515 | ) | ||||||||||||||||
Recoveries | 2 | — | 163 | — | 21 | — | 8 | — | — | 42 | 236 | ||||||||||||||||||||||||
Provisions for (reduction in) loan losses | 459 | 658 | (32 | ) | 197 | 239 | (1,136 | ) | 294 | — | 137 | (65 | ) | 751 | |||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,310 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 862 | $ | — | $ | 31 | $ | 52 | $ | 7,994 | |||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | 270 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 395 | $ | — | $ | — | $ | — | $ | 665 | |||||||||||||
General portfolio allocation | $ | 1,040 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 467 | $ | — | $ | 31 | $ | 52 | $ | 7,329 | |||||||||||||
Loans individually evaluated for impairment | $ | 593 | $ | — | $ | 259 | $ | — | $ | 670 | $ | 266 | $ | 948 | $ | — | $ | — | $ | — | $ | 2,736 | |||||||||||||
Specific reserves to total loans individually evaluated for impairment | 45.53 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 41.67 | % | 0 | % | 0 | % | 0 | % | 24.31 | % | |||||||||||||
Loans collectively evaluated for impairment | $ | 114,761 | $ | 150,934 | $ | 6,623 | $ | 195,761 | $ | 252,739 | $ | 156,158 | $ | 96,515 | $ | — | $ | 8,774 | $ | 1,193 | $ | 983,458 | |||||||||||||
General reserves to total loans collectively evaluated for impairment | 0.91 | % | 1 | % | 1.19 | % | 0.79 | % | 0.58 | % | 0.73 | % | 0.48 | % | 0 | % | 0.35 | % | 4.36 | % | 0.75 | % | |||||||||||||
Total gross loans | $ | 115,354 | $ | 150,934 | $ | 6,882 | $ | 195,761 | $ | 253,409 | $ | 156,424 | $ | 97,463 | $ | — | $ | 8,774 | $ | 1,193 | $ | 986,194 | |||||||||||||
Total allowance to gross loans | 1.14 | % | 1 | % | 1.15 | % | 0.79 | % | 0.58 | % | 0.73 | % | 0.88 | % | 0 | % | 0.35 | % | 4.36 | % | 0.81 | % | |||||||||||||
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Real Estate Owned | ' | |||||||
Summary of the activity in the other real estate owned | ' | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance, beginning of year | $ | 2,258 | $ | 1,231 | ||||
Additions / foreclosures | 996 | 3,151 | ||||||
Sales | (1,488 | ) | (785 | ) | ||||
Loss on sale | (226 | ) | (783 | ) | ||||
Write downs | (354 | ) | (556 | ) | ||||
Balance, end of year | $ | 1,186 | $ | 2,258 |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Premises and Equipment | ' | |||||||
Schedule of components of premises and equipment | ' | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land | $ | 200 | $ | 200 | ||||
Premises | 3,350 | 3,327 | ||||||
Leasehold improvements | 5,231 | 4,123 | ||||||
Furniture, fixtures and equipment | 8,137 | 6,114 | ||||||
Automobiles | 187 | 192 | ||||||
Subtotal | 17,105 | 13,956 | ||||||
Less: accumulated depreciation | (7,241 | ) | (5,381 | ) | ||||
Total | $ | 9,864 | $ | 8,575 |
Deposit_Accounts_Tables
Deposit Accounts (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Deposit Accounts | ' | |||||||||||
Schedule of components of deposit accounts and weighted average interest rates | ' | |||||||||||
2013 | Weighted | 2012 | Weighted | |||||||||
Average | Average | |||||||||||
Interest Rate | Interest Rate | |||||||||||
(dollars in thousands) | ||||||||||||
Transaction accounts | ||||||||||||
Noninterest-bearing checking | $ | 366,755 | 0 | % | $ | 213,636 | 0 | % | ||||
Interest-bearing checking | 120,886 | 0.11 | % | 14,299 | 0.1 | % | ||||||
Money market | 427,577 | 0.29 | % | 236,206 | 0.32 | % | ||||||
Regular passbook | 76,412 | 0.14 | % | 79,420 | 0.22 | % | ||||||
Total transaction accounts | 991,630 | 0.15 | % | 543,561 | 0.19 | % | ||||||
Certificates of deposit accounts | ||||||||||||
Up to $100,000 | 125,313 | 0.8 | % | 157,150 | 0.97 | % | ||||||
Over $100,000 to $250,000 | 130,711 | 0.93 | % | 148,531 | 1.02 | % | ||||||
Over $250,000 | 58,632 | 0.95 | % | 55,526 | 1.04 | % | ||||||
Total certificates of deposit accounts | 314,656 | 0.88 | % | 361,207 | 1 | % | ||||||
Total deposits | $ | 1,306,286 | 0.33 | % | $ | 904,768 | 0.51 | % | ||||
Schedule of aggregate annual maturities of certificates of deposit accounts | ' | |||||||||||
2013 | ||||||||||||
Balance | Weighted | |||||||||||
average | ||||||||||||
interest rate | ||||||||||||
(dollars in thousands) | ||||||||||||
Within 3 months | $ | 36,547 | 0.47 | % | ||||||||
4 to 6 months | 52,738 | 0.79 | % | |||||||||
7 to 12 months | 113,214 | 0.78 | % | |||||||||
13 to 24 months | 101,263 | 1.16 | % | |||||||||
25 to 36 months | 7,099 | 1.11 | % | |||||||||
37 to 60 months | 3,134 | 1.56 | % | |||||||||
Over 60 months | 661 | 0.96 | % | |||||||||
Total | $ | 314,656 | 0.88 | % | ||||||||
Schedule of interest expense on deposit accounts | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Checking accounts | $ | 110 | $ | 82 | $ | 126 | ||||||
Passbook accounts | 103 | 266 | 516 | |||||||||
Money market accounts | 1,043 | 727 | 906 | |||||||||
Certificates of deposit accounts | 2,809 | 4,778 | 6,740 | |||||||||
Total | $ | 4,065 | $ | 5,853 | $ | 8,288 | ||||||
Federal_Home_Loan_Bank_Advance1
Federal Home Loan Bank Advances and Other Borrowings (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Federal Home Loan Bank Advances and Other Borrowings | ' | |||||||
Summary of activities in advances from the FHLB | ' | |||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Average balance outstanding | $ | 26,137 | $ | 9,154 | ||||
Maximum amount outstanding at any month-end during the year | 156,000 | 87,000 | ||||||
Balance outstanding at end of year | 156,000 | 87,000 | ||||||
Weighted average interest rate during the year | 0.15 | % | 0.28 | % | ||||
Summary of activities in other borrowings | ' | |||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Average balance outstanding | $ | 45,310 | $ | 28,500 | ||||
Maximum amount outstanding at any month-end during the year | 52,077 | 28,500 | ||||||
Balance outstanding at end of year | 48,091 | 28,500 | ||||||
Weighted average interest rate during the year | 2.09 | % | 3.31 | % | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of components of income taxes | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current income tax provision: | |||||||||||
Federal | $ | 7,008 | $ | 6,403 | $ | 3,781 | |||||
State | 2,329 | 2,026 | 1,386 | ||||||||
Total current income tax provision | 9,337 | 8,429 | 5,167 | ||||||||
Deferred income tax provision (benefit): | |||||||||||
Federal | (3,129 | ) | 1,262 | 899 | |||||||
State | (621 | ) | 298 | 345 | |||||||
Total deferred income tax provision (benefit) | (3,750 | ) | 1,560 | 1,244 | |||||||
Total income tax provision | $ | 5,587 | $ | 9,989 | $ | 6,411 | |||||
Schedule of reconciliation from statutory federal income taxes to the Company's effective income taxes | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Statutory federal income tax provision | $ | 5,103 | $ | 8,760 | $ | 5,774 | |||||
California franchise tax, net of federal income tax effect | 1,027 | 1,842 | 1,214 | ||||||||
Other, including tax exempt income | (543 | ) | (613 | ) | (577 | ) | |||||
Total income tax provision | $ | 5,587 | $ | 9,989 | $ | 6,411 | |||||
Schedule of deferred tax assets (liabilities) comprised of the temporary differences between the financial statement carrying amounts and the tax basis of assets | ' | ||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Accrued expenses | $ | 891 | $ | 442 | |||||||
Net operating loss | 3,353 | 3,673 | |||||||||
Allowance for loan losses, net of bad debt charge-offs | 3,336 | 3,390 | |||||||||
Directors deferred compensation | 1,896 | — | |||||||||
Unrealized loss on available for sale securities | 2,160 | — | |||||||||
State taxes | 858 | 765 | |||||||||
Capital loss on mutual funds | — | 281 | |||||||||
Other-than-temporary impairment | 684 | 2,180 | |||||||||
Restricted stock and options expense | 6 | 6 | |||||||||
Other | — | 147 | |||||||||
Total deferred tax assets | 13,184 | 10,884 | |||||||||
Deferred tax liabilities: | |||||||||||
Federal Home Loan Bank stock dividends | (306 | ) | (560 | ) | |||||||
Deferred FDIC gain | (1,944 | ) | (2,367 | ) | |||||||
Core deposit intangibles | (1,813 | ) | — | ||||||||
Depreciation | (216 | ) | (111 | ) | |||||||
Unrealized gain on available for sale securities | — | (772 | ) | ||||||||
Other | (428 | ) | (187 | ) | |||||||
Total deferred tax liabilities | (4,707 | ) | (3,997 | ) | |||||||
Net deferred tax asset | $ | 8,477 | $ | 6,887 | |||||||
Commitments_Contingencies_and_1
Commitments, Contingencies and Concentrations of Risk (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments, Contingencies and Concentrations of Risk | ' | ||||||||||
Schedule of minimum annual lease payments, excluding any renewals and extensions, property taxes, and other operating expenses, due under the agreements | ' | ||||||||||
Year ending | |||||||||||
December 31, | |||||||||||
(in thousands) | |||||||||||
2014 | $ | 2,837 | |||||||||
2015 | 2,730 | ||||||||||
2016 | 2,398 | ||||||||||
2017 | 2,119 | ||||||||||
2018 | 1,625 | ||||||||||
Thereafter | 2,344 | ||||||||||
Total | $ | 14,053 | |||||||||
Summary of the expenses the Company has recognized related to share-based compensation awards and also shows the impact those expenses have had on diluted earnings per share and the remaining expense associated with those awards | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except per share data) | |||||||||||
Share-based compensation expense: | |||||||||||
Stock option expense | $ | 943 | $ | 177 | $ | 208 | |||||
Total share-based compensation expense | 943 | 177 | 208 | ||||||||
Total share-based compensation expense, net of tax | $ | 896 | $ | 169 | $ | 205 | |||||
Diluted shares outstanding | 16,609,954 | 10,984,034 | 10,630,720 | ||||||||
Impact on diluted earnings per share | $ | 0.054 | $ | 0.015 | $ | 0.019 | |||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Benefit Plans | ' | |||||||||||
Summary of the activity in the Option Plan | ' | |||||||||||
2013 | 2012 | |||||||||||
Shares | Weighted | Shares | Weighted | |||||||||
average exercise | average exercise | |||||||||||
price per share | price per share | |||||||||||
Options outstanding at the beginning of the year | 672,334 | $ | 8.34 | 568,500 | $ | 8.34 | ||||||
Granted | 202,000 | 10.64 | 190,000 | 7.87 | ||||||||
Exercised | (57,164 | ) | 9.16 | (60,662 | ) | 6.33 | ||||||
Forfeited and expired | (3,500 | ) | 5.91 | (25,504 | ) | 9.72 | ||||||
Options outstanding at the end of the year | 813,670 | $ | 8.86 | 672,334 | $ | 8.34 | ||||||
Options exercisable at the end of the year | 470,687 | 449,435 | ||||||||||
Weighted average remaining contractual life of options outstanding at end of year | 6.0 Years | 5.6 Years | ||||||||||
Schedule of assumptions used for valuing options granted with the Black-Scholes model | ' | |||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Expected volatility | 22.2% - 25.82% | 23.14% | 16.49% - 38.47% | |||||||||
Expected term | 10.0 Years | 10.0 Years | 10.0 Years | |||||||||
Expected dividends | None | None | None | |||||||||
Risk free rate | 1.78% - 2.67% | 1.57% | 1.92% - 3.50% | |||||||||
Weighted-average grant date fair value | $3.93 - $5.87 | $7.87 | $1.80 - $3.47 | |||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Schedule of carrying amount and estimated fair value of financial instruments | ' | ||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 126,813 | $ | 126,813 | $ | — | $ | — | $ | 126,813 | |||||||
Securities available for sale | 256,089 | — | 256,089 | — | 256,089 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 15,450 | 15,450 | — | — | 15,450 | ||||||||||||
Loans held for sale, net | 3,147 | — | 3,147 | — | 3,147 | ||||||||||||
Loans held for investment, net | 1,231,923 | — | 1,227,889 | 2,427 | 1,230,316 | ||||||||||||
Accrued interest receivable | 6,254 | 6,254 | — | — | 6,254 | ||||||||||||
Other real estate owned | 1,186 | — | 1,186 | — | 1,186 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 1,306,286 | 991,630 | 301,007 | — | 1,292,637 | ||||||||||||
FHLB advances | 156,000 | 156,000 | — | — | 156,000 | ||||||||||||
Other borrowings | 48,091 | — | 49,058 | — | 49,058 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,696 | — | 4,696 | ||||||||||||
Accrued interest payable | 166 | 166 | — | — | 166 | ||||||||||||
At December 31, 2012 | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||
Amount | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 59,352 | $ | 59,352 | $ | — | $ | — | $ | 59,352 | |||||||
Securities available for sale | 84,066 | — | 83,114 | 952 | 84,066 | ||||||||||||
Federal Reserve Bank and FHLB stock, at cost | 11,247 | 11,247 | — | — | 11,247 | ||||||||||||
Loans held for sale, net | 3,681 | — | 3,681 | — | 3,681 | ||||||||||||
Loans held for investment, net | 974,213 | — | 1,046,853 | 2,736 | 1,049,589 | ||||||||||||
Accrued interest receivable | 4,126 | 4,126 | — | — | 4,126 | ||||||||||||
Other real estate owned | 2,258 | — | 2,258 | — | 2,258 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposit accounts | 904,768 | 548,101 | 363,382 | — | 911,483 | ||||||||||||
FHLB advances | 87,000 | 87,000 | — | — | 87,000 | ||||||||||||
Other borrowings | 28,500 | — | 31,267 | — | 31,267 | ||||||||||||
Subordinated debentures | 10,310 | — | 4,973 | — | 4,973 | ||||||||||||
Accrued interest payable | 142 | 142 | — | — | 142 | ||||||||||||
Schedule of Off-balance sheet commitments and standby letters of credit | ' | ||||||||||||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 337,181 | $ | — | $ | 33,718 | $ | — | $ | 33,718 | |||||||
Notional | Level 1 | Level 2 | Level 3 | Cost to Cede | |||||||||||||
Amount | or Assume | ||||||||||||||||
Off-balance sheet commitments and standby letters of credit | $ | 131,450 | $ | — | $ | 13,145 | $ | — | $ | 13,145 | |||||||
Schedule of Company's assets measured at fair value on a recurring basis | ' | ||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Marketable securities | $ | — | $ | 256,089 | $ | — | $ | 256,089 | |||||||||
Total assets | $ | — | $ | 256,089 | $ | — | $ | 256,089 | |||||||||
At December 31, 2012 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Marketable securities | $ | — | $ | 83,114 | $ | 952 | $ | 84,066 | |||||||||
Total assets | $ | — | $ | 83,114 | $ | 952 | $ | 84,066 | |||||||||
Schedule of changes in consolidated statements of financial condition carrying values measured at fair value on a recurring basis using significant unobservable (Level 3) inputs | ' | ||||||||||||||||
Marketable Securities | Fair Value Measurement Using | ||||||||||||||||
Significant Other Unobservable | |||||||||||||||||
Inputs (Level 3) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Beginning Balance, January 1, 2013 | $ | 952 | |||||||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||
Included in earnings (or changes in net assets) | 194 | ||||||||||||||||
Included in other comprehensive income | (140 | ) | |||||||||||||||
Purchases, issuances, and settlements | (1,077 | ) | |||||||||||||||
Transfer in and/or out of Level 3 | 71 | ||||||||||||||||
Ending Balance, December 31, 2013 | $ | — | |||||||||||||||
Schedule of Company's assets measured at fair value on a non-recurring basis | ' | ||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets at | ||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Impaired Loans | $ | — | $ | — | $ | 2,427 | $ | 2,427 | |||||||||
Loans held for sale | — | 3,147 | — | 3,147 | |||||||||||||
Other real estate owned | — | 1,186 | — | 1,186 | |||||||||||||
Total assets | $ | — | $ | 4,333 | $ | 2,427 | $ | 6,760 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share | ' | |||||||||
Schedule of Company's unaudited earnings per share calculations | ' | |||||||||
Income/(Loss) | Shares | Per Share | ||||||||
(numerator) | (denominator) | Amount | ||||||||
(dollars in thousands, except share data) | ||||||||||
For the year ended December 31, 2013: | ||||||||||
Net income applicable to earnings per share | $ | 8,993 | ||||||||
Basic earnings per share: Income available to common stockholders | 8,993 | 15,798,885 | $ | 0.57 | ||||||
Effect of dilutive securities: Warrants and stock option plans | — | 811,069 | ||||||||
Diluted earnings per share: Income available to common stockholders | $ | 8,993 | 16,609,954 | $ | 0.54 | |||||
For the year ended December 31, 2012: | ||||||||||
Net income applicable to earnings per share | $ | 15,776 | ||||||||
Basic earnings per share: Income available to common stockholders | 15,776 | 10,571,073 | $ | 1.49 | ||||||
Effect of dilutive securities: Warrants and stock option plans | — | 412,961 | ||||||||
Diluted earnings per share: Income available to common stockholders | $ | 15,776 | 10,984,034 | $ | 1.44 | |||||
For the year ended December 31, 2011: | ||||||||||
Net income applicable to earnings per share | $ | 10,572 | ||||||||
Basic earnings per share: Income available to common stockholders | 10,572 | 10,092,181 | $ | 1.05 | ||||||
Effect of dilutive securities: Warrants and stock option plans | — | 538,539 | ||||||||
Diluted earnings per share: Income available to common stockholders | $ | 10,572 | 10,630,720 | $ | 0.99 |
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Results of Operations (Unaudited) | ' | |||||||||||||
Summary of selected financial data by quarter | ' | |||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(dollars in thousands, except per share data) | ||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||
Interest income | $ | 14,235 | $ | 14,936 | $ | 16,374 | $ | 17,973 | ||||||
Interest expense | 1,336 | 1,347 | 1,366 | 1,307 | ||||||||||
Provision for estimated loan losses | 296 | 322 | 646 | 596 | ||||||||||
Noninterest income | 1,724 | 2,431 | 2,321 | 2,617 | ||||||||||
Noninterest expense | 11,179 | 15,856 | 11,771 | 12,009 | ||||||||||
Income tax provision | 1,176 | 91 | 1,846 | 2,474 | ||||||||||
Net income | $ | 1,972 | $ | (249 | ) | $ | 3,066 | $ | 4,204 | |||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.14 | $ | (0.02 | ) | $ | 0.19 | $ | 0.26 | |||||
Diluted | $ | 0.13 | $ | (0.02 | ) | $ | 0.18 | $ | 0.25 | |||||
For the year ended December 31, 2012 | ||||||||||||||
Interest income | $ | 12,116 | $ | 13,046 | $ | 13,626 | $ | 14,159 | ||||||
Interest expense | 2,075 | 1,764 | 1,772 | 1,538 | ||||||||||
Provision for estimated loan losses | — | — | 145 | 606 | ||||||||||
Noninterest income | 939 | 6,529 | 1,910 | 3,194 | ||||||||||
Noninterest expense | 6,641 | 8,205 | 8,031 | 8,977 | ||||||||||
Income tax provision | 1,647 | 3,795 | 2,126 | 2,421 | ||||||||||
Net income | $ | 2,692 | $ | 5,811 | $ | 3,462 | $ | 3,811 | ||||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.26 | $ | 0.56 | $ | 0.34 | $ | 0.33 | ||||||
Diluted | $ | 0.25 | $ | 0.55 | $ | 0.32 | $ | 0.32 | ||||||
Parent_Company_Financial_Infor1
Parent Company Financial Information (Tables) (Corporation) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Corporation | ' | ||||||||||
Parent Company Financial Information | ' | ||||||||||
Schedule of condensed balance sheets | ' | ||||||||||
PACIFIC PREMIER BANCORP, INC. | |||||||||||
STATEMENTS OF FINANCIAL CONDITION | |||||||||||
(Parent company only) | |||||||||||
At December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 2,873 | $ | 7,027 | |||||||
Deferred income taxes | 3,280 | 4,129 | |||||||||
Investment in subsidiaries | 179,034 | 133,560 | |||||||||
Other assets | 611 | 411 | |||||||||
Total Assets | $ | 185,798 | $ | 145,127 | |||||||
Liabilities: | |||||||||||
Subordinated debentures | $ | 10,310 | $ | 10,310 | |||||||
Accrued expenses and other liabilities | 262 | 301 | |||||||||
Total Liabilities | 10,572 | 10,611 | |||||||||
Total Stockholders’ Equity | 175,226 | 134,516 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 185,798 | $ | 145,127 | |||||||
Schedule of condensed statements of operations | ' | ||||||||||
PACIFIC PREMIER BANCORP, INC. | |||||||||||
STATEMENTS OF OPERATIONS | |||||||||||
(Parent company only) | |||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Income: | |||||||||||
Interest income | $ | 20 | $ | 4 | $ | 4 | |||||
Noninterest income | 3 | 24 | 6 | ||||||||
Total income | 23 | 28 | 10 | ||||||||
Expense: | |||||||||||
Interest expense | 307 | 326 | 310 | ||||||||
Noninterest expense | 2,141 | 1,138 | 546 | ||||||||
Total expense | 2,448 | 1,464 | 856 | ||||||||
Loss before income tax provision | (2,425 | ) | (1,436 | ) | (846 | ) | |||||
Income tax benefit | (827 | ) | (591 | ) | (349 | ) | |||||
Net loss (parent only) | (1,598 | ) | (845 | ) | (497 | ) | |||||
Equity in net earnings of subsidiaries | 10,591 | 16,621 | 11,069 | ||||||||
Net income | $ | 8,993 | $ | 15,776 | $ | 10,572 | |||||
Schedule of condensed statements of cash flows | ' | ||||||||||
PACIFIC PREMIER BANCORP, INC. | |||||||||||
SUMMARY STATEMENTS OF CASH FLOWS | |||||||||||
(Parent company only) | |||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 8,993 | $ | 15,776 | $ | 10,572 | |||||
Adjustments to reconcile net income to cash used in operating activities: | |||||||||||
Share-based compensation expense | 943 | 177 | 208 | ||||||||
Equity in net earnings of subsidiaries | (10,591 | ) | (16,621 | ) | (11,069 | ) | |||||
Increase (decrease) in accrued expenses and other liabilities | (39 | ) | 154 | (192 | ) | ||||||
Increase (decrease) in current and deferred taxes | 1,153 | 93 | 352 | ||||||||
Decrease (increase) in other assets | (504 | ) | 44 | (128 | ) | ||||||
Net cash used in operating activities | (45 | ) | (377 | ) | (257 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Dividend from Bank | — | 800 | 3,450 | ||||||||
Proceeds from issuance of common stock, net of issuance cost | 4,560 | 30,958 | — | ||||||||
Repurchase Pacific Premier Bancorp Warrants | — | — | (3,660 | ) | |||||||
Repurchase of common stock | (59 | ) | (195 | ) | (451 | ) | |||||
Proceeds from exercise of options and warrants | 90 | 237 | 274 | ||||||||
Capital contribution to Bank | (8,700 | ) | (25,000 | ) | — | ||||||
Net cash provided by (used in) financing activities | (4,109 | ) | 6,800 | (387 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (4,154 | ) | 6,423 | (644 | ) | ||||||
Cash and cash equivalents, beginning of year | 7,027 | 604 | 1,248 | ||||||||
Cash and cash equivalents, end of year | $ | 2,873 | $ | 7,027 | $ | 604 | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Acquisitions | ' | ||||||||||
Schedule of contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | ' | ||||||||||
Acquired Loans | |||||||||||
(dollars in thousands) | |||||||||||
Contractual amounts due | $ | 79,358 | |||||||||
Cash flows not expected to be collected | — | ||||||||||
Expected cash flows | 79,358 | ||||||||||
Interest component of expected cash flows | 10,543 | ||||||||||
Fair value of acquired loans | $ | 68,815 | |||||||||
Summary of pro forma net interest and other income, net income and earnings per share | ' | ||||||||||
Twelve months Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Net interest and other income | $ | 72,021 | $ | 71,606 | |||||||
Net income | 9,852 | 18,713 | |||||||||
Basic earnings per share | $ | 0.62 | $ | 1.43 | |||||||
Diluted earnings per share | $ | 0.59 | $ | 1.39 | |||||||
San Diego Trust Bank | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
SDTB | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 30,252 | $ | — | $ | 30,252 | |||||
Investment securities | 124,960 | (155 | ) | 124,805 | |||||||
Loans, gross | 42,945 | (223 | ) | 42,722 | |||||||
Allowance for loan losses | (1,013 | ) | 1,013 | — | |||||||
Other real estate owned | 752 | — | 752 | ||||||||
Core deposit intangible | — | 2,836 | 2,836 | ||||||||
Other assets | 9,856 | — | 9,856 | ||||||||
Total assets acquired | $ | 207,752 | $ | 3,471 | $ | 211,223 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 183,901 | $ | 6 | $ | 183,907 | |||||
Deferred tax liability (asset) | (333 | ) | 1,507 | 1,174 | |||||||
Other liabilities | 1,823 | (729 | ) | 1,094 | |||||||
Total liabilities assumed | 185,391 | 784 | 186,175 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 22,361 | $ | 2,687 | 25,048 | ||||||
Consideration paid | 30,622 | ||||||||||
Goodwill recognized | $ | 5,574 | |||||||||
First Association Bank | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
FAB | Fair Value | Fair | |||||||||
Book Value | Adjustments | Value | |||||||||
(dollars in thousands) | |||||||||||
ASSETS ACQUIRED | |||||||||||
Cash and cash equivalents | $ | 167,663 | $ | — | $ | 167,663 | |||||
Investment securities | 219,913 | 2,478 | 222,391 | ||||||||
Loans, gross | 26,264 | 158 | 26,422 | ||||||||
Allowance for loan losses | (224 | ) | 224 | — | |||||||
Core deposit intangible | — | 1,930 | 1,930 | ||||||||
Other assets | 5,823 | — | 5,823 | ||||||||
Total assets acquired | $ | 419,439 | $ | 4,790 | $ | 424,229 | |||||
LIABILITIES ASSUMED | |||||||||||
Deposits | $ | 356,737 | $ | 81 | $ | 356,818 | |||||
Borrowings | 16,905 | — | 16,905 | ||||||||
Deferred tax liability | — | 3,918 | 3,918 | ||||||||
Other Liabilities | 536 | — | 536 | ||||||||
Total liabilities assumed | 374,178 | 3,999 | 378,177 | ||||||||
Excess of assets acquired over liabilities assumed | $ | 45,261 | $ | 791 | 46,052 | ||||||
Consideration paid | 57,906 | ||||||||||
Goodwill recognized | $ | 11,854 | |||||||||
Palm Desert National | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
April 27, 2012 | |||||||||||
(dollars in thousands) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 22,071 | |||||||||
Securities available for sale | 100 | ||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 1,390 | ||||||||||
Loans | 63,772 | ||||||||||
Other real estate owned | 11,533 | ||||||||||
Core deposit intangible | 840 | ||||||||||
Accrued interest receivable and other assets | 3,658 | ||||||||||
Total Assets Acquired | $ | 103,364 | |||||||||
Liabilities | |||||||||||
Deposits | $ | 115,582 | |||||||||
Other | 29 | ||||||||||
Total Liabilities Assumed | 115,611 | ||||||||||
Excess of liabilities assumed over assets acquired | 12,247 | ||||||||||
Cash received from FDIC | 17,420 | ||||||||||
FDIC receivable | 167 | ||||||||||
Recorded gain on acquisition | $ | 5,340 | |||||||||
Canyon National | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | ' | ||||||||||
February 11, 2011 | |||||||||||
(dollars in thousands) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 13,167 | |||||||||
Securities available for sale | 12,753 | ||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 1,323 | ||||||||||
Loans | 149,740 | ||||||||||
Other real estate owned | 11,953 | ||||||||||
Core deposit intangible | 2,270 | ||||||||||
Accrued interest receivable and other assets | 1,640 | ||||||||||
Total Assets Acquired | $ | 192,846 | |||||||||
Liabilities | |||||||||||
Deposits | $ | 204,678 | |||||||||
Other | 39 | ||||||||||
Total Liabilities Assumed | 204,717 | ||||||||||
Excess of liabilities assumed over assets acquired | 11,871 | ||||||||||
Cash received from FDIC | 13,222 | ||||||||||
FDIC receivable | 2,838 | ||||||||||
Recorded gain on acquisition | $ | 4,189 |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
item | item | |
Description of Business and Summary of Significant Accounting Policies | ' | ' |
Percentage of capital stock of the Bank held | 100.00% | ' |
Number of depository branches | 13 | ' |
Cash and Cash Equivalents | ' | ' |
Cash reserves required by the Board of Governors of the Federal Reserve for depository institutions (in dollars) | $38.30 | ' |
Securities | ' | ' |
Number of investment securities classified as held to maturity | 0 | 0 |
Number of investment securities classified as held for trading | 0 | 0 |
Income Taxes | ' | ' |
Valuation allowance deferred tax asset | $0 | ' |
Buildings | ' | ' |
Premises, furniture and equipment | ' | ' |
Estimated useful life | '40 years | ' |
Furniture, fixtures and equipment | ' | ' |
Premises, furniture and equipment | ' | ' |
Estimated useful life | '7 years | ' |
Computer and telecommunication | ' | ' |
Premises, furniture and equipment | ' | ' |
Estimated useful life | '3 years | ' |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements and Other Regulatory Matters (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Tier 1 Capital (to adjusted tangible assets) | ' | ' |
Actual, Amount (in dollars) | $163,105 | $135,883 |
Actual, Ratio (as a percent) | 10.29% | 12.71% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | 63,431 | 42,771 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Tier I Risk-Based Capital (to risk-weighted assets) | ' | ' |
Actual, Amount (in dollars) | 163,105 | 135,883 |
Actual, Ratio (as a percent) | 12.54% | 13.61% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | 52,046 | 39,924 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Total capital (to risk-weighted assets) | ' | ' |
Actual, Amount (in dollars) | 171,305 | 144,004 |
Actual, Ratio (as a percent) | 13.17% | 14.43% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | 104,092 | 79,848 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
Bank | ' | ' |
Tier 1 Capital (to adjusted tangible assets) | ' | ' |
Actual, Amount (in dollars) | 160,473 | 129,055 |
Actual, Ratio (as a percent) | 10.03% | 12.07% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | 64,025 | 42,773 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Amount (in dollars) | 80,031 | 53,466 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio (as a percent) | 5.00% | 5.00% |
Tier I Risk-Based Capital (to risk-weighted assets) | ' | ' |
Actual, Amount (in dollars) | 160,473 | 129,055 |
Actual, Ratio (as a percent) | 12.34% | 12.99% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | 52,021 | 39,750 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Amount (in dollars) | 78,031 | 59,625 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio (as a percent) | 6.00% | 6.00% |
Total capital (to risk-weighted assets) | ' | ' |
Actual, Amount (in dollars) | 168,673 | 137,049 |
Actual, Ratio (as a percent) | 12.97% | 13.79% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | 104,042 | 79,500 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Amount (in dollars) | $130,052 | $99,375 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio (as a percent) | 10.00% | 10.00% |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | $261,318,000 | $82,189,000 | ' |
Unrealized Gain | 609,000 | 2,360,000 | ' |
Unrealized Loss | -5,838,000 | -483,000 | ' |
Total | 256,089,000 | 84,066,000 | ' |
Equities held at cost, Amortized Cost | ' | ' | ' |
FHLB stock | 7,483,000 | 9,228,000 | ' |
Federal Reserve Bank/TIB | 7,967,000 | 2,019,000 | ' |
Total equities held at cost | 15,450,000 | 11,247,000 | ' |
Equities held at cost, Estimated Fair Value | ' | ' | ' |
FHLB stock | 7,483,000 | 9,228,000 | ' |
Federal Reserve Bank stock | 7,967,000 | 2,019,000 | ' |
Total equities held at cost | 15,450,000 | 11,247,000 | ' |
Total securities | ' | ' | ' |
Amortized Cost | 276,768,000 | 93,436,000 | ' |
Estimated Fair Value | 271,539,000 | 95,313,000 | ' |
Additional disclosures | ' | ' | ' |
Excess FHLB stock with the entity repurchased by FHLB through their stock repurchase program | 4,300,000 | 4,300,000 | ' |
Number of inverse putable reverse repurchase of the Bank's secured by collateral | 3 | ' | ' |
Value of inverse putable reverse repurchases secured by collateral | 28,500,000 | ' | ' |
Securities with OTTI | 0 | ' | ' |
OTTI losses | 4,000 | 159,000 | 617,000 |
U.S. Treasury | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | 73,000 | 147,000 | ' |
Unrealized Gain | 8,000 | 12,000 | ' |
Total | 81,000 | 159,000 | ' |
Municipal bonds | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | 95,388,000 | 25,401,000 | ' |
Unrealized Gain | 589,000 | 1,186,000 | ' |
Unrealized Loss | -1,850,000 | -1,000 | ' |
Total | 94,127,000 | 26,586,000 | ' |
Mortgage-backed securities | ' | ' | ' |
Investment securities available for sale: | ' | ' | ' |
Amortized Cost | 165,857,000 | 56,641,000 | ' |
Unrealized Gain | 12,000 | 1,162,000 | ' |
Unrealized Loss | -3,988,000 | -482,000 | ' |
Total | 161,881,000 | 57,321,000 | ' |
Additional disclosures | ' | ' | ' |
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 34,000,000 | ' | ' |
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | $34,900,000 | ' | ' |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | item | item |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' |
Less than 12 months, Number | 178 | 3 |
Less than 12 months, Fair Value | $202,228 | $15,420 |
Less than 12 months, Gross Unrealized Holding Losses | -4,925 | -153 |
12 months or more, Number | 1 | 31 |
12 months or more, Fair Value | 12,607 | 1,012 |
12 months or more, Gross Unrealized Holding Losses | -913 | -330 |
Total, Number | 179 | 34 |
Total, Fair Value | 214,835 | 16,432 |
Total, Gross Unrealized Holding Losses | -5,838 | -483 |
Municipal bonds | ' | ' |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' |
Less than 12 months, Number | 133 | 1 |
Less than 12 months, Fair Value | 61,524 | 292 |
Less than 12 months, Gross Unrealized Holding Losses | -1,850 | -1 |
Total, Number | 133 | 1 |
Total, Fair Value | 61,524 | 292 |
Total, Gross Unrealized Holding Losses | -1,850 | -1 |
Mortgage-backed securities | ' | ' |
Investment Securities Available-for-Sale, Total temporary impaired securities | ' | ' |
Less than 12 months, Number | 45 | 2 |
Less than 12 months, Fair Value | 140,704 | 15,128 |
Less than 12 months, Gross Unrealized Holding Losses | -3,075 | -152 |
12 months or more, Number | 1 | 31 |
12 months or more, Fair Value | 12,607 | 1,012 |
12 months or more, Gross Unrealized Holding Losses | -913 | -330 |
Total, Number | 46 | 33 |
Total, Fair Value | 153,311 | 16,140 |
Total, Gross Unrealized Holding Losses | ($3,988) | ($482) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Investment securities available for sale, Amortized Cost | ' | ' |
More than One Year to Five Years | $10,013,000 | ' |
More than Five Years to Ten Years | 57,075,000 | ' |
More than Ten Years | 194,230,000 | ' |
Total | 261,318,000 | ' |
Investment securities available for sale, Fair Value | ' | ' |
More than One Year to Five Years | 9,990,000 | ' |
More than Five Years to Ten Years | 56,408,000 | ' |
More than Ten Years | 189,691,000 | ' |
Total | 256,089,000 | 84,066,000 |
Stock, Amortized Cost | ' | ' |
FHLB | 7,483,000 | 9,228,000 |
Federal Reserve Bank/TIB | 7,967,000 | 2,019,000 |
Total equities held at cost | 15,450,000 | 11,247,000 |
Stock, Fair Value | ' | ' |
FHLB stock used to collateralize FHLB advances | 7,483,000 | 9,228,000 |
Federal Reserve Bank | 7,967,000 | 2,019,000 |
Total equities held at cost | 15,450,000 | 11,247,000 |
Total securities, Amortized Cost | ' | ' |
One Year or Less | 15,450,000 | ' |
More than One Year to Five Years | 10,013,000 | ' |
More than Five Years to Ten Years | 57,075,000 | ' |
More than Ten Years | 194,230,000 | ' |
Amortized Cost | 276,768,000 | 93,436,000 |
Total securities, Fair Value | ' | ' |
One Year or Less | 15,450,000 | ' |
More than One Year to Five Years | 9,990,000 | ' |
More than Five Years to Ten Years | 56,408,000 | ' |
More than Ten Years | 189,691,000 | ' |
Estimated Fair Value | 271,539,000 | 95,313,000 |
Accumulated other comprehensive income (loss) | -5,200,000 | 1,900,000 |
Accumulated other comprehensive income, net of tax | -3,077,000 | 1,105,000 |
U.S. Treasury | ' | ' |
Investment securities available for sale, Amortized Cost | ' | ' |
More than One Year to Five Years | 73,000 | ' |
Total | 73,000 | ' |
Investment securities available for sale, Fair Value | ' | ' |
More than One Year to Five Years | 81,000 | ' |
Total | 81,000 | 159,000 |
Municipal bonds | ' | ' |
Investment securities available for sale, Amortized Cost | ' | ' |
More than One Year to Five Years | 9,940,000 | ' |
More than Five Years to Ten Years | 43,685,000 | ' |
More than Ten Years | 41,763,000 | ' |
Total | 95,388,000 | ' |
Investment securities available for sale, Fair Value | ' | ' |
More than One Year to Five Years | 9,909,000 | ' |
More than Five Years to Ten Years | 43,173,000 | ' |
More than Ten Years | 41,045,000 | ' |
Total | 94,127,000 | 26,586,000 |
Mortgage-backed securities | ' | ' |
Investment securities available for sale, Amortized Cost | ' | ' |
More than Five Years to Ten Years | 13,390,000 | ' |
More than Ten Years | 152,467,000 | ' |
Total | 165,857,000 | ' |
Investment securities available for sale, Fair Value | ' | ' |
More than Five Years to Ten Years | 13,235,000 | ' |
More than Ten Years | 148,646,000 | ' |
Total | $161,881,000 | $57,321,000 |
Loans_Held_for_Investment_Deta
Loans Held for Investment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Maximum | Business loans: Commercial and industrial | Business loans: Commercial and industrial | Business loans: Commercial and industrial | Business loans: Commercial owner occupied | Business loans: Commercial owner occupied | Business loans: Commercial owner occupied | Business loans: SBA | Business loans: SBA | Business loans: SBA | Business loans: Warehouse facilities | Business loans: Warehouse facilities | Business loans: Warehouse facilities | Real estate loans: Commercial non-owner occupied | Real estate loans: Commercial non-owner occupied | Real estate loans: Commercial non-owner occupied | Real estate loans: Multi-family | Real estate loans: Multi-family | Real estate loans: Multi-family | Real estate loans: One-to-four family | Real estate loans: One-to-four family | Real estate loans: One-to-four family | Real estate loans: Construction | Real estate loans: Land | Real estate loans: Land | Real estate loans: Land | Other loans | Other loans | Other loans | ||||
Loans Held for Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | $1,243,252,000 | $986,194,000 | ' | ' | $187,035,000 | $115,354,000 | ' | $221,089,000 | $150,934,000 | ' | $10,659,000 | $6,882,000 | ' | $87,517,000 | $195,761,000 | ' | $333,544,000 | $253,409,000 | ' | $233,689,000 | $156,424,000 | ' | $145,235,000 | $97,463,000 | ' | $13,040,000 | $7,605,000 | $8,774,000 | ' | $3,839,000 | $1,193,000 | ' |
Plus (less): loans held for sale, net | -3,147,000 | -3,681,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plus (less): Deferred loan origination fees-net | 18,000 | -306,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plus (less): Allowance for estimated loan losses | -8,200,000 | -7,994,000 | -8,522,000 | ' | -1,968,000 | -1,310,000 | -1,361,000 | -1,818,000 | -1,512,000 | -1,119,000 | -151,000 | -79,000 | -80,000 | -392,000 | -1,544,000 | -1,347,000 | -1,658,000 | -1,459,000 | -1,287,000 | -817,000 | -1,145,000 | -2,281,000 | -1,099,000 | -862,000 | -931,000 | -136,000 | -127,000 | -31,000 | -39,000 | -34,000 | -52,000 | -77,000 |
Loans held for investment, net | 1,231,923,000 | 974,213,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured loans limit to one borrower (as a percent) | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured loans limit to one borrower (as a percent) | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured loans limit to one borrower | 46,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured loans limit to one borrower | 28,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate outstanding balance of loans to one borrower of secured credit | 34,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance for loans and participations serviced for others | 43,800,000 | 25,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased Credit Impaired Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase credit impaired | $1,977,000 | $6,319,000 | $6,488,000 | ' | $80,000 | $308,000 | $117,000 | $870,000 | $1,221,000 | $1,930,000 | ' | ' | ' | ' | ' | ' | $1,009,000 | $2,447,000 | $3,297,000 | ' | ' | ' | $18,000 | $30,000 | $1,092,000 | ' | ' | $2,313,000 | $52,000 | ' | ' | ' |
Loans_Held_for_Investment_Deta1
Loans Held for Investment (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accretable yield on purchased credit impaired | ' | ' | ' |
Balance at the beginning of period | $2,276 | $3,248 | ' |
Accretable yield at acquisition | ' | 3,908 | 4,692 |
Accretion | -557 | -4,846 | -521 |
Disposals and other | -648 | -66 | -1,464 |
Change in accretable yield | 605 | 32 | 541 |
Balance at the end of period | $1,676 | $2,276 | $3,248 |
Loans_Held_for_Investment_Deta2
Loans Held for Investment (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Impaired Loans | ' | ' | ' |
Total impaired loans | $2,427,000 | $2,736,000 | $6,991,000 |
Unpaid Principal Balance | 3,066,000 | 3,538,000 | 9,266,000 |
With Specific Allowance | 306,000 | 828,000 | ' |
Without Specific Allowance | 2,121,000 | 1,908,000 | 6,991,000 |
Specific Allowance for Impaired Loans | 105,000 | 665,000 | ' |
Average Recorded Investment | 2,337,000 | 3,989,000 | 7,811,000 |
Interest Income Recognized | 225,000 | 190,000 | 528,000 |
Nonaccruing loans | 2,300,000 | 2,200,000 | 6,100,000 |
Additional loan interest income, had such loans been performing | 154,000 | 405,000 | 413,000 |
Loans 90 days or more past due and still accruing | 0 | 0 | ' |
Maximum | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Trouble debt restructures amount | 99,000 | ' | ' |
Business loans: Commercial and industrial | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Total impaired loans | ' | 593,000 | 1,138,000 |
Unpaid Principal Balance | ' | 707,000 | 1,321,000 |
With Specific Allowance | ' | 287,000 | ' |
Without Specific Allowance | ' | 306,000 | 1,138,000 |
Specific Allowance for Impaired Loans | ' | 270,000 | ' |
Average Recorded Investment | 255,000 | 203,000 | 373,000 |
Interest Income Recognized | 17,000 | 29,000 | 62,000 |
Business loans: Commercial owner occupied | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Total impaired loans | 747,000 | ' | 1,641,000 |
Unpaid Principal Balance | 872,000 | ' | 1,771,000 |
Without Specific Allowance | 747,000 | ' | 1,641,000 |
Average Recorded Investment | 177,000 | 444,000 | 1,635,000 |
Interest Income Recognized | 66,000 | ' | 64,000 |
Business loans: SBA | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Total impaired loans | 14,000 | 259,000 | 773,000 |
Unpaid Principal Balance | 246,000 | 810,000 | 2,427,000 |
Without Specific Allowance | 14,000 | 259,000 | 773,000 |
Average Recorded Investment | 70,000 | 468,000 | 887,000 |
Interest Income Recognized | 28,000 | 21,000 | 68,000 |
Real estate loans: Commercial non-owner occupied | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Total impaired loans | 983,000 | 670,000 | 1,495,000 |
Unpaid Principal Balance | 1,202,000 | 746,000 | 1,592,000 |
With Specific Allowance | 28,000 | ' | ' |
Without Specific Allowance | 955,000 | 670,000 | 1,495,000 |
Specific Allowance for Impaired Loans | 1,000 | ' | ' |
Average Recorded Investment | 984,000 | 1,031,000 | 2,283,000 |
Interest Income Recognized | 68,000 | 59,000 | 198,000 |
Real estate loans: Multi-family | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Total impaired loans | ' | 266,000 | 1,423,000 |
Unpaid Principal Balance | ' | 315,000 | 1,450,000 |
Without Specific Allowance | ' | 266,000 | 1,423,000 |
Average Recorded Investment | 108,000 | 1,123,000 | 2,309,000 |
Interest Income Recognized | 2,000 | 22,000 | 88,000 |
Real estate loans: One-to-four family | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Total impaired loans | 683,000 | 948,000 | 521,000 |
Unpaid Principal Balance | 746,000 | 960,000 | 705,000 |
With Specific Allowance | 278,000 | 541,000 | ' |
Without Specific Allowance | 405,000 | 407,000 | 521,000 |
Specific Allowance for Impaired Loans | 104,000 | 395,000 | ' |
Average Recorded Investment | 743,000 | 720,000 | 311,000 |
Interest Income Recognized | 44,000 | 59,000 | 47,000 |
Real estate loans: Land | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Average Recorded Investment | ' | ' | 11,000 |
Interest Income Recognized | ' | ' | 1,000 |
Other loans | ' | ' | ' |
Impaired Loans | ' | ' | ' |
Average Recorded Investment | ' | ' | $2,000 |
Loans_Held_for_Investment_Deta3
Loans Held for Investment (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
item | ||
Loans Held for Investment | ' | ' |
Number of areas where the entity's credit quality is maintained and credit risk managed | 2 | ' |
Number of Pass scale grades | 6 | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | $1,243,252 | $986,194 |
Business loans: Commercial and industrial | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 187,035 | 115,354 |
Business loans: Commercial owner occupied | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 221,089 | 150,934 |
Business loans: SBA | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 10,659 | 6,882 |
Business loans: Warehouse facilities | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 87,517 | 195,761 |
Real estate loans: Commercial non-owner occupied | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 333,544 | 253,409 |
Real estate loans: Multi-family | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 233,689 | 156,424 |
Real estate loans: One-to-four family | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 145,235 | 97,463 |
Real estate loans: Construction | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 13,040 | ' |
Real estate loans: Land | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 7,605 | 8,774 |
Other loans | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 3,839 | 1,193 |
Pass | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 1,221,125 | 940,393 |
Pass | Business loans: Commercial and industrial | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 184,247 | 111,895 |
Pass | Business loans: Commercial owner occupied | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 207,872 | 136,330 |
Pass | Business loans: SBA | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 10,659 | 6,819 |
Pass | Business loans: Warehouse facilities | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 87,517 | 195,761 |
Pass | Real estate loans: Commercial non-owner occupied | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 329,538 | 240,585 |
Pass | Real estate loans: Multi-family | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 232,661 | 143,003 |
Pass | Real estate loans: One-to-four family | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 144,152 | 96,061 |
Pass | Real estate loans: Construction | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 13,040 | ' |
Pass | Real estate loans: Land | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 7,605 | 8,762 |
Pass | Other loans | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 3,834 | 1,177 |
Special Mention | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 2,092 | 15,036 |
Special Mention | Business loans: Commercial and industrial | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 12 | 92 |
Special Mention | Business loans: Commercial owner occupied | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 1,217 | 2,674 |
Special Mention | Real estate loans: Commercial non-owner occupied | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 352 | 687 |
Special Mention | Real estate loans: Multi-family | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 511 | 11,583 |
Substandard | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 20,035 | 30,765 |
Substandard | Business loans: Commercial and industrial | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 2,776 | 3,367 |
Substandard | Business loans: Commercial owner occupied | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 12,000 | 11,930 |
Substandard | Business loans: SBA | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | ' | 63 |
Substandard | Real estate loans: Commercial non-owner occupied | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 3,654 | 12,137 |
Substandard | Real estate loans: Multi-family | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 517 | 1,838 |
Substandard | Real estate loans: One-to-four family | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | 1,083 | 1,402 |
Substandard | Real estate loans: Land | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | ' | 12 |
Substandard | Other loans | ' | ' |
Credit Risk Grades | ' | ' |
Total Gross Loans | $5 | $16 |
Loans_Held_for_Investment_Deta4
Loans Held for Investment (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other information concerning the credit quality | ' | ' |
Current | $1,241,140 | $985,303 |
30-59 Days Past Due | 969 | 106 |
60-89 Days Past Due | ' | 303 |
90+ Days Past Due | 1,143 | 482 |
Total | 1,243,252 | 986,194 |
Non-Accruing | 2,251 | 2,205 |
Business loans: Commercial and industrial | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 187,035 | 115,078 |
60-89 Days Past Due | ' | 58 |
90+ Days Past Due | ' | 218 |
Total | 187,035 | 115,354 |
Non-Accruing | ' | 347 |
Business loans: Commercial owner occupied | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 219,875 | 150,689 |
30-59 Days Past Due | 768 | ' |
60-89 Days Past Due | ' | 245 |
90+ Days Past Due | 446 | ' |
Total | 221,089 | 150,934 |
Non-Accruing | 747 | 14 |
Business loans: SBA | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 10,645 | 6,697 |
90+ Days Past Due | 14 | 185 |
Total | 10,659 | 6,882 |
Non-Accruing | 14 | 259 |
Business loans: Warehouse facilities | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 87,517 | 195,761 |
Total | 87,517 | 195,761 |
Real estate loans: Commercial non-owner occupied | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 332,984 | 253,409 |
90+ Days Past Due | 560 | ' |
Total | 333,544 | 253,409 |
Non-Accruing | 983 | 670 |
Real estate loans: Multi-family | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 233,689 | 156,424 |
Total | 233,689 | 156,424 |
Non-Accruing | ' | 266 |
Real estate loans: One-to-four family | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 145,041 | 97,283 |
30-59 Days Past Due | 71 | 101 |
90+ Days Past Due | 123 | 79 |
Total | 145,235 | 97,463 |
Non-Accruing | 507 | 522 |
Real estate loans: Construction | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 13,040 | ' |
Total | 13,040 | ' |
Real estate loans: Land | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 7,605 | 8,774 |
Total | 7,605 | 8,774 |
Non-Accruing | ' | 127 |
Other loans | ' | ' |
Other information concerning the credit quality | ' | ' |
Current | 3,709 | 1,188 |
30-59 Days Past Due | 130 | 5 |
Total | $3,839 | $1,193 |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | $7,994 | ' | ' | $7,994 | $8,522 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | -2,031 | -1,515 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | 377 | 236 | 402 |
Provisions for (reduction in) loan losses | 596 | 646 | 322 | 296 | 606 | 145 | 1,860 | 751 | 3,255 |
Balance, at the end of the period | 8,200 | ' | ' | ' | 7,994 | ' | 8,200 | 7,994 | 8,522 |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | 105 | ' | ' | ' | 665 | ' | 105 | 665 | ' |
Amount of allowance attributed to: General portfolio allocation | 8,095 | ' | ' | ' | 7,329 | ' | 8,095 | 7,329 | ' |
Loans individually evaluated for impairment | 2,427 | ' | ' | ' | 2,736 | ' | 2,427 | 2,736 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 4.33% | 24.31% | ' |
Loans collectively evaluated for impairment | 1,240,825 | ' | ' | ' | 983,458 | ' | 1,240,825 | 983,458 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.65% | 0.75% | ' |
Total gross loans | 1,243,252 | ' | ' | ' | 986,194 | ' | 1,243,252 | 986,194 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 0.66% | 0.81% | ' |
Commercial Business Loans, Owner-Occupied Commercial Real Estate Loans, and SBA Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual trailing period considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '36 months | ' | ' |
Trailing period one considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '24 months | ' | ' |
Trailing period two considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '12 months | ' | ' |
Annualized trailing period considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Period considered for comparison of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Period considered for comparison of entity's allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '15 years | ' | ' |
Trailing period considered for comparison of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '12 months | ' | ' |
Non-Owner Occupied Commercial Real Estate, Multi-Family, Land and Construction Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual trailing period considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '36 months | ' | ' |
Trailing period one considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '24 months | ' | ' |
Trailing period two considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '12 months | ' | ' |
Annualized trailing period considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Period considered for comparison of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Period considered for comparison of entity's allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '15 years | ' | ' |
Trailing period considered for comparison of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '12 months | ' | ' |
Single Family and Consumer Loans and Warehouse Repurchase Facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual trailing period considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '36 months | ' | ' |
Trailing period one considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '24 months | ' | ' |
Trailing period two considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '12 months | ' | ' |
Annualized trailing period considered for determination of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Period considered for comparison of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Period considered for comparison of entity's allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '15 years | ' | ' |
Trailing period considered for comparison of allowance for loan losses factor | ' | ' | ' | ' | ' | ' | '12 months | ' | ' |
Commercial and industrial | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 1,310 | ' | ' | 1,310 | 1,361 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | -509 | -512 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | 138 | 2 | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | 1,029 | 459 | ' |
Balance, at the end of the period | 1,968 | ' | ' | ' | 1,310 | ' | 1,968 | 1,310 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | ' | ' | ' | ' | 270 | ' | ' | 270 | ' |
Amount of allowance attributed to: General portfolio allocation | 1,968 | ' | ' | ' | 1,040 | ' | 1,968 | 1,040 | ' |
Loans individually evaluated for impairment | ' | ' | ' | ' | 593 | ' | ' | 593 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | 45.53% | ' |
Loans collectively evaluated for impairment | 187,035 | ' | ' | ' | 114,761 | ' | 187,035 | 114,761 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 1.05% | 0.91% | ' |
Total gross loans | 187,035 | ' | ' | ' | 115,354 | ' | 187,035 | 115,354 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 1.05% | 1.14% | ' |
Commercial owner occupied | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 1,512 | ' | ' | 1,512 | 1,119 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | -232 | -265 | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | 538 | 658 | ' |
Balance, at the end of the period | 1,818 | ' | ' | ' | 1,512 | ' | 1,818 | 1,512 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 1,818 | ' | ' | ' | 1,512 | ' | 1,818 | 1,512 | ' |
Loans individually evaluated for impairment | 747 | ' | ' | ' | ' | ' | 747 | ' | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 220,342 | ' | ' | ' | 150,934 | ' | 220,342 | 150,934 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.83% | 1.00% | ' |
Total gross loans | 221,089 | ' | ' | ' | 150,934 | ' | 221,089 | 150,934 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 0.82% | 1.00% | ' |
SBA | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 79 | ' | ' | 79 | 80 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | -143 | -132 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | 50 | 163 | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | 165 | -32 | ' |
Balance, at the end of the period | 151 | ' | ' | ' | 79 | ' | 151 | 79 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 151 | ' | ' | ' | 79 | ' | 151 | 79 | ' |
Loans individually evaluated for impairment | 14 | ' | ' | ' | 259 | ' | 14 | 259 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 10,645 | ' | ' | ' | 6,623 | ' | 10,645 | 6,623 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 1.42% | 1.19% | ' |
Total gross loans | 10,659 | ' | ' | ' | 6,882 | ' | 10,659 | 6,882 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 1.42% | 1.15% | ' |
Warehouse | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 1,544 | ' | ' | 1,544 | 1,347 | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | -1,152 | 197 | ' |
Balance, at the end of the period | 392 | ' | ' | ' | 1,544 | ' | 392 | 1,544 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 392 | ' | ' | ' | 1,544 | ' | 392 | 1,544 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 87,517 | ' | ' | ' | 195,761 | ' | 87,517 | 195,761 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.45% | 0.79% | ' |
Total gross loans | 87,517 | ' | ' | ' | 195,761 | ' | 87,517 | 195,761 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 0.45% | 0.79% | ' |
Commercial non-owner occupied | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 1,459 | ' | ' | 1,459 | 1,287 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | -756 | -88 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | 21 | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | 955 | 239 | ' |
Balance, at the end of the period | 1,658 | ' | ' | ' | 1,459 | ' | 1,658 | 1,459 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | 1 | ' | ' | ' | ' | ' | 1 | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 1,657 | ' | ' | ' | 1,459 | ' | 1,657 | 1,459 | ' |
Loans individually evaluated for impairment | 983 | ' | ' | ' | 670 | ' | 983 | 670 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.10% | 0.00% | ' |
Loans collectively evaluated for impairment | 332,561 | ' | ' | ' | 252,739 | ' | 332,561 | 252,739 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.50% | 0.58% | ' |
Total gross loans | 333,544 | ' | ' | ' | 253,409 | ' | 333,544 | 253,409 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 0.50% | 0.58% | ' |
Multi-family | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 1,145 | ' | ' | 1,145 | 2,281 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | -101 | ' | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | -227 | -1,136 | ' |
Balance, at the end of the period | 817 | ' | ' | ' | 1,145 | ' | 817 | 1,145 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 817 | ' | ' | ' | 1,145 | ' | 817 | 1,145 | ' |
Loans individually evaluated for impairment | ' | ' | ' | ' | 266 | ' | ' | 266 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 233,689 | ' | ' | ' | 156,158 | ' | 233,689 | 156,158 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.35% | 0.73% | ' |
Total gross loans | 233,689 | ' | ' | ' | 156,424 | ' | 233,689 | 156,424 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 0.35% | 0.73% | ' |
One-to-four family | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 862 | ' | ' | 862 | 931 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | -272 | -371 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | 47 | 8 | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | 462 | 294 | ' |
Balance, at the end of the period | 1,099 | ' | ' | ' | 862 | ' | 1,099 | 862 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: Specifically evaluated impaired loans | 104 | ' | ' | ' | 395 | ' | 104 | 395 | ' |
Amount of allowance attributed to: General portfolio allocation | 995 | ' | ' | ' | 467 | ' | 995 | 467 | ' |
Loans individually evaluated for impairment | 683 | ' | ' | ' | 948 | ' | 683 | 948 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 15.23% | 41.67% | ' |
Loans collectively evaluated for impairment | 144,552 | ' | ' | ' | 96,515 | ' | 144,552 | 96,515 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.69% | 0.48% | ' |
Total gross loans | 145,235 | ' | ' | ' | 97,463 | ' | 145,235 | 97,463 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 0.76% | 0.88% | ' |
Construction | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | 136 | ' | ' |
Balance, at the end of the period | 136 | ' | ' | ' | ' | ' | 136 | ' | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 136 | ' | ' | ' | ' | ' | 136 | ' | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 13,040 | ' | ' | ' | ' | ' | 13,040 | ' | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 1.04% | 0.00% | ' |
Total gross loans | 13,040 | ' | ' | ' | ' | ' | 13,040 | ' | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 1.04% | 0.00% | ' |
Land | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 31 | ' | ' | 31 | 39 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | -145 | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | 96 | 137 | ' |
Balance, at the end of the period | 127 | ' | ' | ' | 31 | ' | 127 | 31 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 127 | ' | ' | ' | 31 | ' | 127 | 31 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 7,605 | ' | ' | ' | 8,774 | ' | 7,605 | 8,774 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 1.67% | 0.35% | ' |
Total gross loans | 7,605 | ' | ' | ' | 8,774 | ' | 7,605 | 8,774 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 1.67% | 0.35% | ' |
Other loans | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of allowance as well as the activity in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | ' | ' | ' | 52 | ' | ' | 52 | 77 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | -18 | -2 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | 142 | 42 | ' |
Provisions for (reduction in) loan losses | ' | ' | ' | ' | ' | ' | -142 | -65 | ' |
Balance, at the end of the period | 34 | ' | ' | ' | 52 | ' | 34 | 52 | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance attributed to: General portfolio allocation | 34 | ' | ' | ' | 52 | ' | 34 | 52 | ' |
Specific reserves to total loans individually evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' |
Loans collectively evaluated for impairment | 3,839 | ' | ' | ' | 1,193 | ' | 3,839 | 1,193 | ' |
General reserves to total loans collectively evaluated for impairment (as a percent) | ' | ' | ' | ' | ' | ' | 0.89% | 4.36% | ' |
Total gross loans | $3,839 | ' | ' | ' | $1,193 | ' | $3,839 | $1,193 | ' |
Total allowance to gross loans (as a percent) | ' | ' | ' | ' | ' | ' | 0.89% | 4.36% | ' |
Other_Real_Estate_Owned_Detail
Other Real Estate Owned (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other Real Estate Owned | ' | ' |
Balance, beginning of year | $2,258 | $1,231 |
Additions / foreclosures | 996 | 3,151 |
Sales | -1,488 | -785 |
Loss on sale | -226 | -783 |
Write downs | -354 | -556 |
Balance, end of year | $1,186 | $2,258 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Premises and Equipment | ' | ' | ' |
Subtotal | $17,105 | $13,956 | ' |
Less: accumulated depreciation | -7,241 | -5,381 | ' |
Total | 9,864 | 8,575 | ' |
Depreciation expense | 1,948 | 1,358 | 1,203 |
Land | ' | ' | ' |
Premises and Equipment | ' | ' | ' |
Subtotal | 200 | 200 | ' |
Premises | ' | ' | ' |
Premises and Equipment | ' | ' | ' |
Subtotal | 3,350 | 3,327 | ' |
Leasehold improvements | ' | ' | ' |
Premises and Equipment | ' | ' | ' |
Subtotal | 5,231 | 4,123 | ' |
Furniture, fixtures and equipment | ' | ' | ' |
Premises and Equipment | ' | ' | ' |
Subtotal | 8,137 | 6,114 | ' |
Automobiles | ' | ' | ' |
Premises and Equipment | ' | ' | ' |
Subtotal | $187 | $192 | ' |
Deposit_Accounts_Details
Deposit Accounts (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Transaction accounts | ' | ' | ' |
Noninterest-bearing checking | $366,755,000 | $213,636,000 | ' |
Interest-bearing checking | 120,886,000 | 14,299,000 | ' |
Money market | 427,577,000 | 236,206,000 | ' |
Regular passbook | 76,412,000 | 79,420,000 | ' |
Total transaction accounts | 991,630,000 | 543,561,000 | ' |
Certificates of deposit accounts | ' | ' | ' |
Up to $100,000 | 125,313,000 | 157,150,000 | ' |
Over $100,000 to $250,000 | 130,711,000 | 148,531,000 | ' |
Over $250,000 | 58,632,000 | 55,526,000 | ' |
Total certificates of deposit accounts | 314,656,000 | 361,207,000 | ' |
Total deposits | 1,306,286,000 | 904,768,000 | ' |
Transaction accounts, Weighted Average Interest Rate | ' | ' | ' |
Noninterest-bearing checking (as a percent) | 0.00% | 0.00% | ' |
Interest-bearing checking (as a percent) | 0.11% | 0.10% | ' |
Money market (as a percent) | 0.29% | 0.32% | ' |
Regular passbook (as a percent) | 0.14% | 0.22% | ' |
Total transaction accounts (as a percent) | 0.15% | 0.19% | ' |
Certificates of deposit accounts, Weighted Average Interest Rate | ' | ' | ' |
Up to $100,000 (as a percent) | 0.80% | 0.97% | ' |
Over $100,000 to $250,000 (as a percent) | 0.93% | 1.02% | ' |
Over $250,000 (as a percent) | 0.95% | 1.04% | ' |
Total certificates of deposit accounts (as a percent) | 0.88% | 1.00% | ' |
Total deposits (as a percent) | 0.33% | 0.51% | ' |
Certificates of deposit accounts, Balance | ' | ' | ' |
Within 3 months | 36,547,000 | ' | ' |
4 to 6 months | 52,738,000 | ' | ' |
7 to 12 months | 113,214,000 | ' | ' |
13 to 24 months | 101,263,000 | ' | ' |
25 to 36 months | 7,099,000 | ' | ' |
37 to 60 months | 3,134,000 | ' | ' |
Over 60 months | 661,000 | ' | ' |
Total certificates of deposit accounts | 314,656,000 | 361,207,000 | ' |
Certificates of deposit accounts, Weighted average interest rate | ' | ' | ' |
Within 3 months (as a percent) | 0.47% | ' | ' |
4 to 6 months (as a percent) | 0.79% | ' | ' |
7 to 12 months (as a percent) | 0.78% | ' | ' |
13 to 24 months (as a percent) | 1.16% | ' | ' |
25 to 36 months (as a percent) | 1.11% | ' | ' |
37 to 60 months (as a percent) | 1.56% | ' | ' |
Over 60 months (as a percent) | 0.96% | ' | ' |
Total certificates of deposit accounts (as a percent) | 0.88% | 1.00% | ' |
Average cost of deposits (as a percent) | 0.47% | 0.81% | ' |
Interest expense on deposit accounts | ' | ' | ' |
Checking accounts | 110,000 | 82,000 | 126,000 |
Passbook accounts | 103,000 | 266,000 | 516,000 |
Money market accounts | 1,043,000 | 727,000 | 906,000 |
Certificates of deposit accounts | 2,809,000 | 4,778,000 | 6,740,000 |
Total interest-bearing deposits | 4,065,000 | 5,853,000 | 8,288,000 |
Accrued interest on deposits | $94,000 | $71,000 | ' |
Federal_Home_Loan_Bank_Advance2
Federal Home Loan Bank Advances and Other Borrowings (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Federal Home Loan Bank Advances and Other Borrowings | ' | ' |
Maximum percentage of assets up to which advances will be provided by FHLB | 45.00% | ' |
Maximum credit line available from FHLB | $704,300,000 | ' |
Aggregate principal balance of real estate loans used to collateralize FHLB advances | 549,700,000 | ' |
FHLB stock used to collateralize FHLB advances | 7,483,000 | 9,228,000 |
Additional available advances | 227,700,000 | ' |
Activities in advances from the FHLB | ' | ' |
Average balance outstanding | 26,137,000 | 9,154,000 |
Maximum amount outstanding at any month-end during the year | 156,000,000 | 87,000,000 |
Balance outstanding at end of year | 156,000,000 | 87,000,000 |
Federal Home Loan Bank Advances and Other Borrowings | ' | ' |
Estimated fair value of MBS used to secure outstanding borrowings | 34,900,000 | ' |
Securities sold under agreement to repurchase | 28,500,000 | ' |
Weighted average rate for securities sold under agreement to repurchase (as a percent) | 0.15% | 0.28% |
Credit facilities | Citigroup | ' | ' |
Activities in other borrowings | ' | ' |
Balance outstanding at end of year | 18,500,000 | 18,500,000 |
Credit facilities | Barclays Bank | ' | ' |
Activities in other borrowings | ' | ' |
Balance outstanding at end of year | 10,000,000 | 10,000,000 |
Reverse repurchase facility | ' | ' |
Federal Home Loan Bank Advances and Other Borrowings | ' | ' |
Estimated fair value of MBS used to secure outstanding borrowings | 18,600,000 | ' |
Securities sold under agreement to repurchase | 18,600,000 | ' |
Weighted average rate for securities sold under agreement to repurchase (as a percent) | 0.02% | ' |
Reverse repurchase facility | Union Bank | ' | ' |
Federal Home Loan Bank Advances and Other Borrowings | ' | ' |
Unused facility | 50,000,000 | ' |
Unsecured lines of credit | ' | ' |
Federal Home Loan Bank Advances and Other Borrowings | ' | ' |
Unused facility | 59,000,000 | ' |
Number of correspondent banks | 7 | ' |
Amount outstanding | 1,000,000 | 0 |
Other Borrowings | ' | ' |
Activities in other borrowings | ' | ' |
Average balance outstanding | 45,310,000 | 28,500,000 |
Maximum amount outstanding at any month-end during the year | 52,077,000 | 28,500,000 |
Balance outstanding at end of year | 48,091,000 | 28,500,000 |
Weighted average interest rate during the year (as a percent) | 2.09% | 3.31% |
Federal Reserve discount window | ' | ' |
Federal Home Loan Bank Advances and Other Borrowings | ' | ' |
Unused facility | $3,300,000 | ' |
Subordinated_Debentures_Detail
Subordinated Debentures (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
Mar. 25, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 25, 2004 | |
PPBI Trust I | Subordinated Debentures | Subordinated Debentures | Subordinated Debentures | |
PPBI Trust I | ||||
Subordinated Debentures | ' | ' | ' | ' |
Debt issued | ' | ' | ' | $10,310,000 |
Floating interest rate, base rate | ' | '3-month LIBOR | ' | ' |
Floating interest rate, basis points added to base rate (as a percent) | ' | 2.75% | ' | ' |
Effective rate (as a percent) | ' | 2.99% | 3.09% | ' |
Minority interest purchased (as a percent) | ' | ' | ' | 3.00% |
Amount of minority interest purchased | ' | ' | ' | 310,000 |
Floating Rate Trust Preferred Securities issue amount | $10,000,000 | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current income tax provision: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $7,008 | $6,403 | $3,781 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 2,329 | 2,026 | 1,386 |
Total current income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | 9,337 | 8,429 | 5,167 |
Deferred income tax provision (benefit): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -3,129 | 1,262 | 899 |
State | ' | ' | ' | ' | ' | ' | ' | ' | -621 | 298 | 345 |
Total deferred income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -3,750 | 1,560 | 1,244 |
Total income tax provision | 2,474 | 1,846 | 91 | 1,176 | 2,421 | 2,126 | 3,795 | 1,647 | 5,587 | 9,989 | 6,411 |
Reconciliation from statutory federal income taxes to the company's effective income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory federal income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | 5,103 | 8,760 | 5,774 |
California franchise tax, net of federal income tax effect | ' | ' | ' | ' | ' | ' | ' | ' | 1,027 | 1,842 | 1,214 |
Other, including tax exempt income | ' | ' | ' | ' | ' | ' | ' | ' | -543 | -613 | -577 |
Total income tax provision | 2,474 | 1,846 | 91 | 1,176 | 2,421 | 2,126 | 3,795 | 1,647 | 5,587 | 9,989 | 6,411 |
Deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | 891 | ' | ' | ' | 442 | ' | ' | ' | 891 | 442 | ' |
Net operating loss | 3,353 | ' | ' | ' | 3,673 | ' | ' | ' | 3,353 | 3,673 | ' |
Allowance for loan losses, net of bad debt charge-offs | 3,336 | ' | ' | ' | 3,390 | ' | ' | ' | 3,336 | 3,390 | ' |
Directors deferred compensation | 1,896 | ' | ' | ' | ' | ' | ' | ' | 1,896 | ' | ' |
Unrealized loss on available for sale securities | 2,160 | ' | ' | ' | ' | ' | ' | ' | 2,160 | ' | ' |
State taxes | 858 | ' | ' | ' | 765 | ' | ' | ' | 858 | 765 | ' |
Capital loss on mutual funds | ' | ' | ' | ' | 281 | ' | ' | ' | ' | 281 | ' |
Other-than-temporary impairment | 684 | ' | ' | ' | 2,180 | ' | ' | ' | 684 | 2,180 | ' |
Restricted stock and options expense | 6 | ' | ' | ' | 6 | ' | ' | ' | 6 | 6 | ' |
Other | ' | ' | ' | ' | 147 | ' | ' | ' | ' | 147 | ' |
Total deferred tax assets | 13,184 | ' | ' | ' | 10,884 | ' | ' | ' | 13,184 | 10,884 | ' |
Deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal Home Loan Bank stock dividends | -306 | ' | ' | ' | -560 | ' | ' | ' | -306 | -560 | ' |
Deferred FDIC gain | -1,944 | ' | ' | ' | -2,367 | ' | ' | ' | -1,944 | -2,367 | ' |
Core deposit intangibles | -1,813 | ' | ' | ' | ' | ' | ' | ' | -1,813 | ' | ' |
Depreciation | -216 | ' | ' | ' | -111 | ' | ' | ' | -216 | -111 | ' |
Unrealized gain on available for sale securities | ' | ' | ' | ' | -772 | ' | ' | ' | ' | -772 | ' |
Other | -428 | ' | ' | ' | -187 | ' | ' | ' | -428 | -187 | ' |
Total deferred tax liabilities | -4,707 | ' | ' | ' | -3,997 | ' | ' | ' | -4,707 | -3,997 | ' |
Net deferred tax asset | $8,477 | ' | ' | ' | $6,887 | ' | ' | ' | $8,477 | $6,887 | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Taxes | ' |
Valuation allowance deferred tax asset | $0 |
Period over which results of transactions could lead to a change in ownership | '3 years |
Minimum cumulative change in ownership that could result in a Section 382 ownership change (as a percent) | 50.00% |
Annual usable net operating loss carryforward per year | 932,000 |
Federal income tax purpose | ' |
Income Taxes | ' |
Net operating loss carryforward | 9,400,000 |
California franchise tax purpose | ' |
Income Taxes | ' |
Net operating loss carryforward | $942,000 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Concentrations of Risk (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Lease Commitments | ' | ' | ' |
2014 | $2,837,000 | ' | ' |
2015 | 2,730,000 | ' | ' |
2016 | 2,398,000 | ' | ' |
2017 | 2,119,000 | ' | ' |
2018 | 1,625,000 | ' | ' |
Thereafter | 2,344,000 | ' | ' |
Total | 14,053,000 | ' | ' |
Rental expense | $2,400,000 | $1,200,000 | $926,000 |
Commitments_Contingencies_and_3
Commitments, Contingencies and Concentrations of Risk (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-Based Compensation | ' | ' | ' |
Total share-based compensation expense | $943 | $177 | $208 |
Total share-based compensation expense, net of tax | 896 | 169 | 205 |
Diluted shares outstanding | 16,609,954 | 10,984,034 | 10,630,720 |
Impact on diluted earnings per share (in dollars per share) | $0.05 | $0.02 | $0.02 |
Stock option | ' | ' | ' |
Share-Based Compensation | ' | ' | ' |
Total share-based compensation expense | $943 | $177 | $208 |
Commitments_Contingencies_and_4
Commitments, Contingencies and Concentrations of Risk (Details 3) (Employment Agreements) | 12 Months Ended |
Dec. 31, 2013 | |
CEO | ' |
Employment Agreements | ' |
Term of agreements | '3 years |
Chief Banking Officer | ' |
Employment Agreements | ' |
Term of agreements | '3 years |
Chief Financial Officer | ' |
Employment Agreements | ' |
Term of agreements | '3 years |
Chief Credit Officer | ' |
Employment Agreements | ' |
Term of agreements | '3 years |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Benefit Plans | ' | ' | ' |
Employer's match of employees' contributions of the first 3% of eligible compensation (as a percent) | 100.00% | 100.00% | 100.00% |
Percentage of eligible compensation, matched 100% by employer | 3.00% | 3.00% | 3.00% |
Employer's match of employees' contributions of the next 2% of eligible compensation (as a percent) | 50.00% | 50.00% | 50.00% |
Percentage of eligible compensation, matched 50% by employer | 2.00% | 2.00% | 2.00% |
Contributions made | $401,000 | $260,000 | $212,000 |
Minimum | ' | ' | ' |
Benefit Plans | ' | ' | ' |
Employee contribution, as a percentage of compensation | 1.00% | ' | ' |
Maximum | ' | ' | ' |
Benefit Plans | ' | ' | ' |
Employee contribution, as a percentage of compensation | 50.00% | ' | ' |
Benefit_Plans_Details_2
Benefit Plans (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Apr. 27, 2000 | Feb. 25, 2004 | Dec. 31, 2013 | 30-May-12 | Dec. 31, 2013 | |
Stock option | Stock option | Stock option | Stock option | Stock option | Stock option | Stock option | Stock option | Stock option | Stock option | 2000 Stock Incentive Plan | 2004 Long-Term Incentive Plan | 2004 Long-Term Incentive Plan | 2012 Plan | 2012 Plan | ||||
Minimum | Minimum | Maximum | Maximum | |||||||||||||||
Share based plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 975,000 | ' | 525,500 | ' | 620,000 |
Term of plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | ' |
Vesting percentage per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.30% | ' | 33.30% | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the year (in shares) | ' | ' | ' | 672,334 | 568,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | 202,000 | 190,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | -57,164 | -60,662 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited and expired (in shares) | ' | ' | ' | -3,500 | -25,504 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the year (in shares) | ' | ' | ' | 813,670 | 672,334 | 568,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at the end of the year (in shares) | ' | ' | ' | 470,687 | 449,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the year (in dollars per share) | ' | ' | ' | $8.34 | $8.34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | $10.64 | $7.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | $9.16 | $6.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited and expired (in dollars per share) | ' | ' | ' | $5.91 | $9.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the year (in dollars per share) | ' | ' | ' | $8.86 | $8.34 | $8.34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life of options outstanding at end of year | ' | ' | ' | '6 years | '5 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in dollars) | ' | ' | ' | $5,600,000 | $1,500,000 | $184,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of vested options | ' | ' | ' | 3,400,000 | 695,000 | 180,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense (in dollars) | 943,000 | 177,000 | 208,000 | 943,000 | 177,000 | 208,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense (in dollars) | ' | ' | ' | ' | ' | ' | $9,000 | $232,000 | $56,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumptions: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | 23.14% | ' | ' | ' | ' | 22.20% | 16.49% | 25.82% | 38.47% | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | '10 years | '10 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividends (as a percent) | ' | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free rate (as a percent) | ' | ' | ' | ' | 1.57% | ' | ' | ' | ' | 1.78% | 1.92% | 2.67% | 3.50% | ' | ' | ' | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | ' | ' | $7.87 | ' | ' | ' | ' | $3.93 | $1.80 | $5.87 | $3.47 | ' | ' | ' | ' | ' |
Benefit_Plans_Details_3
Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Salary Continuation Plan | ' | ' | ' |
Benefit Plans | ' | ' | ' |
Amounts expensed | $122,000 | $80,000 | ' |
Amounts recorded as liability | 1,000,000 | 524,000 | ' |
Directors' Deferred Compensation Plan | ' | ' | ' |
Benefit Plans | ' | ' | ' |
Amounts recorded as liability | 315,000 | 269,000 | ' |
Variable rate basis | 'prime | ' | ' |
Basis spread (as a percent) | 1.00% | ' | ' |
Interest expense | 7,000 | 10,000 | 7,000 |
Long-Term Care Insurance Plan | ' | ' | ' |
Benefit Plans | ' | ' | ' |
Amounts expensed | 79,000 | 33,000 | ' |
Amounts recorded as liability | 90,000 | 70,000 | ' |
Long-Term Care Insurance Plan | Maximum | ' | ' | ' |
Benefit Plans | ' | ' | ' |
Insurance premium recorded in deferred compensation account, on opting out of the plan | $4,000 | ' | ' |
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance Sheet Risk (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Instruments with Off-Balance Sheet Risk | ' | ' |
Financial instruments with off-balance sheet risk | $337,181,000 | $131,450,000 |
Undisbursed loans and unused lines of credit | ' | ' |
Financial Instruments with Off-Balance Sheet Risk | ' | ' |
Allowance for credit losses | 341,000 | 127,000 |
Commitments to extend credit | ' | ' |
Financial Instruments with Off-Balance Sheet Risk | ' | ' |
Financial instruments with off-balance sheet risk | 337,200,000 | 131,500,000 |
Commitments to extend credit | Warehouse | ' | ' |
Financial Instruments with Off-Balance Sheet Risk | ' | ' |
Financial instruments with off-balance sheet risk | 207,500,000 | ' |
Commitments to extend credit | Commercial and industrial | ' | ' |
Financial Instruments with Off-Balance Sheet Risk | ' | ' |
Financial instruments with off-balance sheet risk | $77,200,000 | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value of Financial Instruments | ' | ' | ' |
Cost to assume off-balance sheet commitments and standby letters of credit as a percentage of notional amount | 10.00% | ' | ' |
Assets: | ' | ' | ' |
Securities available for sale | $256,089 | $84,066 | ' |
Federal Reserve Bank and FHLB stock, at cost | 15,450 | 11,247 | ' |
Other real estate owned | 1,186 | 2,258 | 1,231 |
Accrued interest receivable | 6,254 | 4,126 | ' |
Liabilities: | ' | ' | ' |
FHLB advances | 156,000 | 87,000 | ' |
Off-balance sheet commitments and standby letters of credit | ' | ' | ' |
Notional Amount | 337,181 | 131,450 | ' |
Cost to Cede or Assume | 33,718 | 13,145 | ' |
Level 1 | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 126,813 | 59,352 | ' |
Federal Reserve Bank and FHLB stock, at cost | 15,450 | 11,247 | ' |
Accrued interest receivable | 6,254 | 4,126 | ' |
Liabilities: | ' | ' | ' |
Deposit accounts | 991,630 | 548,101 | ' |
FHLB advances | 156,000 | 87,000 | ' |
Accrued interest payable | 166 | 142 | ' |
Level 2 | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available for sale | 256,089 | 83,114 | ' |
Loans held for sale, net | 3,147 | 3,681 | ' |
Loans held for investment, net | 1,227,889 | 1,046,853 | ' |
Other real estate owned | 1,186 | 2,258 | ' |
Liabilities: | ' | ' | ' |
Deposit accounts | 301,007 | 363,382 | ' |
Other borrowings | 49,058 | 31,267 | ' |
Subordinated debentures | 4,696 | 4,973 | ' |
Off-balance sheet commitments and standby letters of credit | ' | ' | ' |
Cost to Cede or Assume | 33,718 | 13,145 | ' |
Level 3 | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available for sale | ' | 952 | ' |
Loans held for investment, net | 2,427 | 2,736 | ' |
Carrying Amount | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 126,813 | 59,352 | ' |
Securities available for sale | 256,089 | 84,066 | ' |
Federal Reserve Bank and FHLB stock, at cost | 15,450 | 11,247 | ' |
Loans held for sale, net | 3,147 | 3,681 | ' |
Loans held for investment, net | 1,231,923 | 974,213 | ' |
Other real estate owned | 1,186 | 2,258 | ' |
Accrued interest receivable | 6,254 | 4,126 | ' |
Liabilities: | ' | ' | ' |
Deposit accounts | 1,306,286 | 904,768 | ' |
FHLB advances | 156,000 | 87,000 | ' |
Other borrowings | 48,091 | 28,500 | ' |
Subordinated debentures | 10,310 | 10,310 | ' |
Accrued interest payable | 166 | 142 | ' |
Estimated Fair Value | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 126,813 | 59,352 | ' |
Securities available for sale | 256,089 | 84,066 | ' |
Federal Reserve Bank and FHLB stock, at cost | 15,450 | 11,247 | ' |
Loans held for sale, net | 3,147 | 3,681 | ' |
Loans held for investment, net | 1,230,316 | 1,049,589 | ' |
Other real estate owned | 1,186 | 2,258 | ' |
Accrued interest receivable | 6,254 | 4,126 | ' |
Liabilities: | ' | ' | ' |
Deposit accounts | 1,292,637 | 911,483 | ' |
FHLB advances | 156,000 | 87,000 | ' |
Other borrowings | 49,058 | 31,267 | ' |
Subordinated debentures | 4,696 | 4,973 | ' |
Accrued interest payable | $166 | $142 | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures | ' | ' |
Marketable Securities | $271,539 | $95,313 |
Recurring basis | Fair Value Measurement Using: Level 2 | ' | ' |
Fair Value Disclosures | ' | ' |
Marketable Securities | 256,089 | 83,114 |
Total assets | 256,089 | 83,114 |
Recurring basis | Fair Value Measurement Using: Level 3 | ' | ' |
Fair Value Disclosures | ' | ' |
Marketable Securities | ' | 952 |
Total assets | ' | 952 |
Recurring basis | Assets at Fair Value | ' | ' |
Fair Value Disclosures | ' | ' |
Marketable Securities | 256,089 | 84,066 |
Total assets | $256,089 | $84,066 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Reconciliation of the beginning and ending balance of assets measured at fair value on a recurring basis using significant unobservable (Level 3) inputs | ' |
Balance, beginning of period | $952 |
Total gains or (losses) realized/unrealized: Included in earnings (or changes in net assets) | 194 |
Total gains or (losses) realized/unrealized: Included in other comprehensive income | -140 |
Total gains or (losses) realized/unrealized: Purchases, issuances, and settlements | -1,077 |
Total gains or (losses) realized/unrealized: Transfer in and/or out of Level 3 | $71 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Fair Value Disclosures | ' | ' | ' |
Impaired loans | $2,427 | $2,736 | $6,991 |
Other real estate owned | 1,186 | 2,258 | 1,231 |
Fair Value Measurement Using: Level 2 | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Loans held for sale | 3,147 | 3,681 | ' |
Other real estate owned | 1,186 | 2,258 | ' |
Non-recurring basis | Fair Value Measurement Using: Level 2 | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Loans held for sale | 3,147 | ' | ' |
Other real estate owned | 1,186 | ' | ' |
Total assets | 4,333 | ' | ' |
Non-recurring basis | Fair Value Measurement Using: Level 3 | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Impaired loans | 2,427 | ' | ' |
Total assets | 2,427 | ' | ' |
Non-recurring basis | Assets at Fair Value | ' | ' | ' |
Fair Value Disclosures | ' | ' | ' |
Impaired loans | 2,427 | ' | ' |
Loans held for sale | 3,147 | ' | ' |
Other real estate owned | 1,186 | ' | ' |
Total assets | $6,760 | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (Options) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Options | ' | ' |
Earnings (loss) per share | ' | ' |
Securities excluded from diluted earnings per share calculation | 2,601 | 259,373 |
Earnings_Per_Share_Details_2
Earnings Per Share (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income/ (Loss) (numerator) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income applicable to earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | $8,993 | $15,776 | $10,572 |
Basic earnings per share: Income available to common stockholders | 4,204 | 3,066 | -249 | 1,972 | 3,811 | 3,462 | 5,811 | 2,692 | 8,993 | 15,776 | 10,572 |
Diluted earnings per share: Income available to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | $8,993 | $15,776 | $10,572 |
Shares (denominator) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share: Income available to common stockholders (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 15,798,885 | 10,571,073 | 10,092,181 |
Effect of dilutive securities: Warrants and stock option plans (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 811,069 | 412,961 | 538,539 |
Diluted earnings per share: Income available to common stockholders (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 16,609,954 | 10,984,034 | 10,630,720 |
Per Share Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share: Income available to common stockholders (in dollars per share) | $0.26 | $0.19 | ($0.02) | $0.14 | $0.33 | $0.34 | $0.56 | $0.26 | $0.57 | $1.49 | $1.05 |
Diluted earnings per share: Income available to common stockholders (in dollars per share) | $0.25 | $0.18 | ($0.02) | $0.13 | $0.32 | $0.32 | $0.55 | $0.25 | $0.54 | $1.44 | $0.99 |
Related_Parties_Details
Related Parties (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Parties | ' | ' |
New loans to officers and directors | $0 | $0 |
Related party deposits | $819,000 | $1,200,000 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Results of Operations (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $17,973 | $16,374 | $14,936 | $14,235 | $14,159 | $13,626 | $13,046 | $12,116 | $63,518 | $52,947 | $50,225 |
Interest expense | 1,307 | 1,366 | 1,347 | 1,336 | 1,538 | 1,772 | 1,764 | 2,075 | 5,356 | 7,149 | 9,596 |
Provision for loan losses | 596 | 646 | 322 | 296 | 606 | 145 | ' | ' | 1,860 | 751 | 3,255 |
Noninterest income | 2,617 | 2,321 | 2,431 | 1,724 | 3,194 | 1,910 | 6,529 | 939 | 9,093 | 12,572 | 6,513 |
Noninterest expense | 12,009 | 11,771 | 15,856 | 11,179 | 8,977 | 8,031 | 8,205 | 6,641 | 50,815 | 31,854 | 26,904 |
Income tax provision | 2,474 | 1,846 | 91 | 1,176 | 2,421 | 2,126 | 3,795 | 1,647 | 5,587 | 9,989 | 6,411 |
NET INCOME | $4,204 | $3,066 | ($249) | $1,972 | $3,811 | $3,462 | $5,811 | $2,692 | $8,993 | $15,776 | $10,572 |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.26 | $0.19 | ($0.02) | $0.14 | $0.33 | $0.34 | $0.56 | $0.26 | $0.57 | $1.49 | $1.05 |
Diluted (in dollars per share) | $0.25 | $0.18 | ($0.02) | $0.13 | $0.32 | $0.32 | $0.55 | $0.25 | $0.54 | $1.44 | $0.99 |
Parent_Company_Financial_Infor2
Parent Company Financial Information (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Parent Company Financial Information | ' | ' | ' | ' |
Percentage of capital stock of the Bank held | 100.00% | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $126,813 | $59,352 | ' | ' |
Deferred income taxes | 8,477 | 6,887 | ' | ' |
Other assets | 6,877 | 3,276 | ' | ' |
TOTAL ASSETS | 1,714,187 | 1,173,792 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Subordinated debentures | 10,310 | 10,310 | ' | ' |
Accrued expenses and other liabilities | 18,274 | 8,697 | ' | ' |
Total liabilities | 1,538,961 | 1,039,275 | ' | ' |
Total Stockholders' Equity | 175,226 | 134,517 | 86,777 | 78,602 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,714,187 | 1,173,792 | ' | ' |
Corporation | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 2,873 | 7,027 | ' | ' |
Deferred income taxes | 3,280 | 4,129 | ' | ' |
Investment in subsidiaries | 179,034 | 133,560 | ' | ' |
Other assets | 611 | 411 | ' | ' |
TOTAL ASSETS | 185,798 | 145,127 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Subordinated debentures | 10,310 | 10,310 | ' | ' |
Accrued expenses and other liabilities | 262 | 301 | ' | ' |
Total liabilities | 10,572 | 10,611 | ' | ' |
Total Stockholders' Equity | 175,226 | 134,516 | ' | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $185,798 | $145,127 | ' | ' |
Parent_Company_Financial_Infor3
Parent Company Financial Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $17,973 | $16,374 | $14,936 | $14,235 | $14,159 | $13,626 | $13,046 | $12,116 | $63,518 | $52,947 | $50,225 |
Noninterest income | 2,617 | 2,321 | 2,431 | 1,724 | 3,194 | 1,910 | 6,529 | 939 | 9,093 | 12,572 | 6,513 |
Expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 1,307 | 1,366 | 1,347 | 1,336 | 1,538 | 1,772 | 1,764 | 2,075 | 5,356 | 7,149 | 9,596 |
Noninterest expense | 12,009 | 11,771 | 15,856 | 11,179 | 8,977 | 8,031 | 8,205 | 6,641 | 50,815 | 31,854 | 26,904 |
INCOME BEFORE INCOME TAX | ' | ' | ' | ' | ' | ' | ' | ' | 14,580 | 25,765 | 16,983 |
Income tax benefit | 2,474 | 1,846 | 91 | 1,176 | 2,421 | 2,126 | 3,795 | 1,647 | 5,587 | 9,989 | 6,411 |
NET INCOME | 4,204 | 3,066 | -249 | 1,972 | 3,811 | 3,462 | 5,811 | 2,692 | 8,993 | 15,776 | 10,572 |
Corporation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 4 | 4 |
Noninterest income | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 24 | 6 |
Total income | ' | ' | ' | ' | ' | ' | ' | ' | 23 | 28 | 10 |
Expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 307 | 326 | 310 |
Noninterest expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,141 | 1,138 | 546 |
Total expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,448 | 1,464 | 856 |
INCOME BEFORE INCOME TAX | ' | ' | ' | ' | ' | ' | ' | ' | -2,425 | -1,436 | -846 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -827 | -591 | -349 |
Net loss (parent only) | ' | ' | ' | ' | ' | ' | ' | ' | -1,598 | -845 | -497 |
Equity in net earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 10,591 | 16,621 | 11,069 |
NET INCOME | ' | ' | ' | ' | ' | ' | ' | ' | $8,993 | $15,776 | $10,572 |
Parent_Company_Financial_Infor4
Parent Company Financial Information (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $4,204 | $3,066 | ($249) | $1,972 | $3,811 | $3,462 | $5,811 | $2,692 | $8,993 | $15,776 | $10,572 |
Adjustments to reconcile net income to cash used in operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 943 | 177 | 208 |
Increase (decrease) in accrued expenses and other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 9,683 | 2,033 | -3,500 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 15,504 | 12,169 | 11,997 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock, net of issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | 4,560 | 30,958 | ' |
Repurchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | -59 | -195 | -451 |
Net cash provided (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -62,930 | 78,309 | -78,878 |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 67,461 | -883 | -3,227 |
Cash and cash equivalents, beginning of year | ' | ' | ' | 59,352 | ' | ' | ' | 60,235 | 59,352 | 60,235 | 63,462 |
Cash and cash equivalents, end of year | 126,813 | ' | ' | ' | 59,352 | ' | ' | ' | 126,813 | 59,352 | 60,235 |
Corporation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 8,993 | 15,776 | 10,572 |
Adjustments to reconcile net income to cash used in operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 943 | 177 | 208 |
Equity in net earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -10,591 | -16,621 | -11,069 |
Increase (decrease) in accrued expenses and other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | -39 | 154 | -192 |
Increase (decrease) in current and deferred taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,153 | 93 | 352 |
Decrease (increase) in other assets | ' | ' | ' | ' | ' | ' | ' | ' | -504 | 44 | -128 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | -45 | -377 | -257 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend from Bank | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800 | 3,450 |
Proceeds from issuance of common stock, net of issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | 4,560 | 30,958 | ' |
Repurchase Pacific Premier Bancorp Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,660 |
Repurchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | -59 | -195 | -451 |
Proceeds from exercise of options and warrants | ' | ' | ' | ' | ' | ' | ' | ' | 90 | 237 | 274 |
Capital contribution to Bank | ' | ' | ' | ' | ' | ' | ' | ' | -8,700 | -25,000 | ' |
Net cash provided (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -4,109 | 6,800 | -387 |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | -4,154 | 6,423 | -644 |
Cash and cash equivalents, beginning of year | ' | ' | ' | 7,027 | ' | ' | ' | 604 | 7,027 | 604 | 1,248 |
Cash and cash equivalents, end of year | $2,873 | ' | ' | ' | $7,027 | ' | ' | ' | $2,873 | $7,027 | $604 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 25, 2013 | Jun. 25, 2013 | Jun. 25, 2013 | Jun. 25, 2013 | Mar. 15, 2013 | Mar. 15, 2013 | Mar. 15, 2013 | Apr. 27, 2012 | Apr. 27, 2012 | Feb. 11, 2011 | Feb. 11, 2011 | |
Acquired Loans | San Diego Trust Bank | San Diego Trust Bank | San Diego Trust Bank | San Diego Trust Bank | First Association Bank | First Association Bank | First Association Bank | Palm Desert National | Palm Desert National | Canyon National | Canyon National | ||||
item | Maximum | As initially reported | Fair Value Adjustments | item | As initially reported | Fair Value Adjustments | item | As initially reported | item | As initially reported | |||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | $16,200,000 | ' | ' | ' | $43,000,000 | ' | ' | ' | ' | ' | ' |
Number of shares of common stock issued as consideration | ' | ' | ' | ' | 1,198,255 | ' | ' | ' | 1,279,217 | ' | ' | ' | ' | ' | ' |
Number of entities in business combination | ' | ' | ' | ' | 2 | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Number of branches acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | 3 | ' |
Deposit transaction accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,100,000 | ' | ' |
Retail certificates of deposit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,800,000 | ' | ' |
Whole sale certificates of deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,100,000 | ' | ' |
ASSETS ACQUIRED | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | 30,252,000 | ' | 30,252,000 | ' | 167,663,000 | 167,663,000 | ' | 22,071,000 | 39,500,000 | 13,167,000 | ' |
Investment securities | ' | ' | ' | ' | 124,805,000 | ' | 124,960,000 | -155,000 | 222,391,000 | 219,913,000 | 2,478,000 | ' | 1,500,000 | ' | 12,800,000 |
Securities available for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | 12,753,000 | ' |
Federal Reserve Bank and Federal Home Loan Bank stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,390,000 | ' | 1,323,000 | ' |
Loans, gross | ' | ' | ' | ' | 42,722,000 | ' | 42,945,000 | -223,000 | 26,422,000 | 26,264,000 | 158,000 | 63,772,000 | 63,800,000 | 149,740,000 | ' |
Allowance for loan losses | ' | ' | ' | ' | ' | ' | -1,013,000 | 1,013,000 | ' | -224,000 | 224,000 | ' | ' | ' | ' |
Other real estate owned | ' | ' | ' | ' | 752,000 | ' | 752,000 | ' | ' | ' | ' | 11,533,000 | 11,500,000 | 11,953,000 | ' |
Core deposit intangible | ' | ' | ' | ' | 2,836,000 | ' | ' | 2,836,000 | 1,930,000 | ' | 1,930,000 | 840,000 | 840,000 | 2,270,000 | 2,300,000 |
Accrued interest receivable and other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,658,000 | ' | 1,640,000 | ' |
Other assets | ' | ' | ' | ' | 9,856,000 | ' | 9,856,000 | ' | 5,823,000 | 5,823,000 | ' | ' | 3,800,000 | ' | 1,500,000 |
Total Assets Acquired | ' | ' | ' | ' | 211,223,000 | ' | 207,752,000 | 3,471,000 | 424,229,000 | 419,439,000 | 4,790,000 | 103,364,000 | 120,900,000 | 192,846,000 | ' |
LIABILITIES ASSUMED | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | ' | 183,907,000 | ' | 183,901,000 | 6,000 | 356,818,000 | 356,737,000 | 81,000 | 115,582,000 | ' | 204,678,000 | ' |
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 16,905,000 | 16,905,000 | ' | ' | ' | ' | ' |
Deferred tax liability (asset) | ' | ' | ' | ' | 1,174,000 | ' | -333,000 | 1,507,000 | 3,918,000 | ' | 3,918,000 | ' | 2,400,000 | ' | 1,900,000 |
Other liabilities | ' | ' | ' | ' | 1,094,000 | ' | 1,823,000 | -729,000 | 536,000 | 536,000 | ' | 29,000 | 578,000 | 39,000 | ' |
Total Liabilities Assumed | ' | ' | ' | ' | 186,175,000 | ' | 185,391,000 | 784,000 | 378,177,000 | 374,178,000 | 3,999,000 | 115,611,000 | 118,000,000 | 204,717,000 | ' |
Excess of assets acquired over liabilities assumed | ' | ' | ' | ' | 25,048,000 | ' | 22,361,000 | 2,687,000 | 46,052,000 | 45,261,000 | 791,000 | -12,247,000 | ' | -11,871,000 | ' |
Consideration paid | ' | ' | ' | ' | 30,622,000 | ' | ' | ' | 57,906,000 | ' | ' | ' | ' | ' | ' |
Goodwill recognized | 17,428,000 | ' | ' | ' | 5,574,000 | ' | ' | ' | 11,854,000 | ' | ' | ' | ' | ' | ' |
Cash received from FDIC | 138,424,000 | 39,491,000 | 26,389,000 | ' | ' | ' | ' | ' | ' | ' | ' | 17,420,000 | ' | 13,222,000 | ' |
FDIC receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167,000 | ' | 2,838,000 | 16,100,000 |
Recorded gain on acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,340,000 | ' | 4,189,000 | ' |
Total purchase credit impaired loans | 1,977,000 | 6,319,000 | 6,488,000 | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Extension period for measurement of fair values | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual amounts due | ' | ' | ' | 79,358,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected cash flows | ' | ' | ' | 79,358,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest component of expected cash flows | ' | ' | ' | 10,543,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of acquired loans | ' | ' | ' | 68,815,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro forma net interest and other income, net income and earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest and other income | 72,021,000 | 71,606,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $9,852,000 | $18,713,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.62 | $1.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $0.59 | $1.39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 30, 2014 |
Subsequent events | |||
Infinity | |||
Subsequent Events | ' | ' | ' |
Assets acquired | ' | ' | $80,800,000 |
Liabilities acquired | ' | ' | 709,000 |
Credit facility paid off | ' | ' | 67,600,000 |
Delinquent loans or adversely classified assets | 2,251,000 | 2,205,000 | 0 |
Consideration paid | ' | ' | 16,900,000 |
Cash consideration | ' | ' | $9,000,000 |
Number of shares of common stock issued as consideration | ' | ' | 562,469 |
Stock price of the acquired entity (in dollars per share) | ' | ' | $16.02 |
Period prior to announcement of the transaction for which average closing price is considered to calculate value of shares to be issued | ' | ' | '10 days |