Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 04, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | PACIFIC PREMIER BANCORP INC | ||
Entity Central Index Key | 1,028,918 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
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 | $ 357,772,133 | ||
Entity Common Stock, Shares Outstanding | 27,416,797 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 14,935 | $ 12,562 |
Interest bearing deposits with financial institutions | 63,482 | 98,363 |
Cash and cash equivalents | 78,417 | 110,925 |
Interest bearing time deposits with financial institutions | 1,972 | 0 |
Investment securities held-to-maturity, at amortized cost | 9,642 | 0 |
Investment securities available-for-sale, at fair value | 280,273 | 201,638 |
FHLB, FRB and other stock, at cost | 22,292 | 17,067 |
Loans held for sale at lower of cost or market | 8,565 | 0 |
Loans held for investment | 2,254,315 | 1,628,622 |
Allowance for loan losses | (17,317) | (12,200) |
Loans held for investment, net | 2,236,998 | 1,616,422 |
Accrued interest receivable | 9,315 | 7,131 |
Other real estate owned | 1,161 | 1,037 |
Premises and equipment | 9,248 | 9,165 |
Deferred income taxes, net | 11,511 | 9,383 |
Bank owned life insurance | 39,245 | 26,822 |
Intangible assets | 7,170 | 5,614 |
Goodwill | 50,832 | 22,950 |
Other assets | 24,005 | 10,743 |
TOTAL ASSETS | 2,790,646 | 2,038,897 |
Deposit accounts: | ||
Noninterest bearing checking | 711,771 | 456,754 |
Interest-bearing: | ||
Checking | 134,999 | 131,635 |
Money market/savings | 827,378 | 600,764 |
Retail certificates of deposit | 365,911 | 365,168 |
Wholesale/brokered certificates of deposit | 155,064 | 76,505 |
Total interest-bearing | 1,483,352 | 1,174,072 |
Total deposits | 2,195,123 | 1,630,826 |
FHLB advances and other borrowings | 196,125 | 116,643 |
Subordinated debentures | 70,310 | 70,310 |
Accrued expenses and other liabilities | 30,108 | 21,526 |
Total liabilities | 2,491,666 | 1,839,305 |
COMMITMENTS AND CONTINGENCIES (Note 14) | 0 | 0 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares outstanding | 0 | 0 |
Common stock, $.01 par value; 50,000,000 shares authorized; 21,570,746 shares at December 31, 2015, and 16,903,884 shares at December 31, 2014 issued and outstanding | 215 | 169 |
Additional paid-in capital | 221,487 | 147,474 |
Retained earnings | 76,946 | 51,431 |
Accumulated other comprehensive income, net of tax of $230 at December 31, 2015 and $362 at December 31, 2014 | 332 | 518 |
TOTAL STOCKHOLDERS’ EQUITY | 298,980 | 199,592 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,790,646 | $ 2,038,897 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Financial Position [Abstract] | ||
Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares outstanding | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 25,000,000 |
Common stock, shares issued | 21,570,746 | 16,903,884 |
Common stock, shares outstanding | 21,570,746 | 16,903,884 |
Accumulated other comprehensive income (loss), tax (benefit) (in dollars) | $ 230 | $ 362 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST INCOME | |||
Loans | $ 111,097 | $ 75,751 | $ 58,089 |
Investment securities and other interest-earning assets | 7,259 | 5,588 | 5,711 |
Total interest income | 118,356 | 81,339 | 63,800 |
INTEREST EXPENSE | |||
Deposits | 6,630 | 5,037 | 4,065 |
FHLB advances and other borrowings | 1,490 | 1,124 | 984 |
Subordinated debentures | 3,937 | 1,543 | 307 |
Total interest expense | 12,057 | 7,704 | 5,356 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 106,299 | 73,635 | 58,444 |
PROVISION FOR LOAN LOSSES | 6,425 | 4,684 | 1,860 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 99,874 | 68,951 | 56,584 |
NONINTEREST INCOME | |||
Loan servicing fees | 1,459 | 1,475 | 910 |
Deposit fees | 2,532 | 1,809 | 1,873 |
Net gain from sales of loans | 7,970 | 6,300 | 3,228 |
Net gain from sales of investment securities | 290 | 1,547 | 1,544 |
Other income | 2,190 | 2,246 | 1,256 |
Total noninterest income | 14,441 | 13,377 | 8,811 |
NONINTEREST EXPENSE | |||
Compensation and benefits | 38,456 | 28,705 | 23,018 |
Premises and occupancy | 8,205 | 6,608 | 5,797 |
Data processing and communications | 2,816 | 2,570 | 3,080 |
Other real estate owned operations, net | 121 | 75 | 618 |
FDIC insurance premiums | 1,376 | 1,021 | 749 |
Legal, audit and professional expense | 2,514 | 2,240 | 1,863 |
Marketing expense | 2,305 | 1,208 | 1,088 |
Office and postage expense | 2,005 | 1,576 | 1,313 |
Loan expense | 1,268 | 848 | 1,009 |
Deposit expense | 3,643 | 2,964 | 1,818 |
Merger-related expense | 4,799 | 1,490 | 6,926 |
CDI amortization | 1,350 | 1,014 | 764 |
Other expense | 4,733 | 4,674 | 2,772 |
Total noninterest expense | 73,591 | 54,993 | 50,815 |
INCOME BEFORE INCOME TAX | 40,724 | 27,335 | 14,580 |
INCOME TAX | 15,209 | 10,719 | 5,587 |
NET INCOME | $ 25,515 | $ 16,616 | $ 8,993 |
EARNINGS PER SHARE | |||
Basic (in dollars per share) | $ 1.21 | $ 0.97 | $ 0.57 |
Diluted (in dollars per share) | $ 1.19 | $ 0.96 | $ 0.54 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||
Basic (in shares) | 21,156,668 | 17,046,660 | 15,798,885 |
Diluted (in shares) | 21,488,698 | 17,343,977 | 16,609,954 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 25,515 | $ 16,616 | $ 8,993 | |
Other comprehensive income (loss), net of tax (benefit): | ||||
Unrealized holding gains (losses) on securities arising during the period, net of income taxes (benefits) | [1] | (15) | 4,506 | (3,273) |
Reclassification adjustment for net loss (gain) on sale of securities included in net income, net of income taxes | [2] | (171) | (911) | (909) |
Net unrealized gain (loss) on securities, net of income taxes | (186) | 3,595 | (4,182) | |
Comprehensive Income | $ 25,329 | $ 20,211 | $ 4,811 | |
[1] | (1) Income tax (benefit) on unrealized holding gains (losses) on securities was $(13,000) for 2015, $3.2 million for 2014, and ($2.3) million for 2013. | |||
[2] | (2) Income tax on reclassification adjustment for net gain on sale of securities included in net income was $119,000 for 2015, $636,000 for 2014, and $635,000 for 2013. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Tax effect on unrealized holding gains (losses) on securities arising during the period | $ (13) | $ 3,200 | $ (2,300) |
Income tax expense on reclassification adjustment for net gain on sale of securities included in net income | $ 119 | $ 636 | $ 635 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2012 | $ 134,517 | $ 137 | $ 107,453 | $ 25,822 | $ 1,105 |
Balance (in shares) at Dec. 31, 2012 | 13,661,648 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
NET INCOME | 8,993 | 8,993 | |||
Other comprehensive income (loss) | (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 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
NET INCOME | 16,616 | 16,616 | |||
Other comprehensive income (loss) | 3,595 | 3,595 | |||
Share-based compensation expense | 514 | 514 | |||
Issuance of common stock | 9,012 | $ 6 | 9,006 | ||
Issuance of common stock (in shares) | 562,469 | ||||
Repurchase of common stock | (5,638) | $ (4) | (5,634) | ||
Repurchase of common stock (in shares) | (447,450) | ||||
Exercise of stock options | 267 | $ 1 | 266 | ||
Exercise of stock options (in shares) | 132,586 | ||||
Balance at Dec. 31, 2014 | $ 199,592 | $ 169 | 147,474 | 51,431 | 518 |
Balance (in shares) at Dec. 31, 2014 | 16,903,884 | 16,903,884 | |||
Increase (Decrease) in Stockholders' Equity | |||||
NET INCOME | $ 25,515 | ||||
Other comprehensive income (loss) | (186) | (186) | |||
Share-based compensation expense | 1,165 | 1,165 | |||
Issuance of restricted stock, net (in shares) | 60,000 | ||||
Issuance of common stock | 72,252 | $ 45 | 72,207 | ||
Issuance of common stock (in shares) | 4,480,645 | ||||
Warrants exercised | 689 | $ 1 | 688 | ||
Warrants exercised (in shares) | 125,316 | ||||
Repurchase of common stock | (116) | (116) | |||
Repurchase of common stock (in shares) | (7,165) | ||||
Exercise of stock options | 69 | 69 | |||
Exercise of stock options (in shares) | 8,066 | ||||
Balance at Dec. 31, 2015 | $ 298,980 | $ 215 | $ 221,487 | $ 76,946 | $ 332 |
Balance (in shares) at Dec. 31, 2015 | 21,570,746 | 21,570,746 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
NET INCOME | $ 25,515 | $ 16,616 | $ 8,993 |
Adjustments to net income: | |||
Depreciation and amortization expense | 2,432 | 2,198 | 1,948 |
Provision for loan losses | 6,425 | 4,684 | 1,860 |
Share-based compensation expense | 1,165 | 514 | 943 |
Loss on sale of or write down of other real estate owned | 92 | 17 | 580 |
Amortization of premium/discounts on securities held for sale, net | 3,822 | 2,641 | 3,052 |
Accretion of discounts/premiums for loans acquired and deferred loan fees/costs | (2,967) | (2,179) | (3,555) |
Gain on sale of investment securities available for sale | (290) | (1,547) | (1,544) |
Other-than-temporary impairment loss (recovery) on investment securities, net | 0 | (29) | 4 |
Originations of loans held for sale | (87,900) | 0 | 0 |
Recoveries on loans | 73 | 99 | 377 |
Proceeds from the sales of and principal payments from loans held for sale | 86,604 | 31 | 534 |
Gain on sale of loans | (7,970) | (6,120) | (3,228) |
Deferred income tax provision (benefit) | (1,395) | (2,375) | (3,750) |
Change in accrued expenses and other liabilities, net | 6,786 | 2,764 | 9,683 |
Income from bank owned life insurance, net | (1,147) | (771) | (659) |
Amortization of core deposit intangible | 1,350 | 1,014 | 764 |
Change in accrued interest receivable and other assets, net | (7,347) | (4,270) | (498) |
Net cash provided by operating activities | 25,248 | 13,287 | 15,504 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net increase in interest-bearing time deposits with financial institutions | (1,972) | 0 | 0 |
Proceeds from sale of loans | 70,489 | 97,848 | 39,411 |
Increase in loans, net | (361,002) | (397,347) | (223,792) |
Change in other real estate owned from sales and writedowns | (216) | 777 | 1,488 |
Purchase of held to maturity securities | (9,642) | 0 | 0 |
Principal payments on securities available for sale | 33,751 | 26,815 | 33,688 |
Purchase of securities available for sale | (90,127) | (133,689) | (101,268) |
Proceeds from sale or maturity of securities available for sale | 27,642 | 166,341 | 234,067 |
Investment in bank owned life insurance | 0 | (2,000) | 0 |
Purchases of premises and equipment | (1,887) | (1,448) | (3,581) |
Purchase of Federal Reserve Bank stock | (1,706) | (536) | (5,948) |
Redemption (purchase) of FHLB stock | (1,150) | (1,081) | 2,398 |
Cash acquired (disbursed) in acquisitions | 2,961 | (7,793) | 138,424 |
Net cash (used in) provided by investing activities | (332,859) | (252,113) | 114,887 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net (decrease) increase in deposit accounts | 228,279 | 324,540 | (139,207) |
Proceeds from issuance of subordinated debt | 0 | 58,834 | 0 |
Change in FHLB advances and other borrowings, net | 46,182 | (155,065) | 71,686 |
Proceeds from issuance of common stock, net of issuance cost | 0 | 0 | 4,560 |
Proceeds from exercise of stock options and warrants | 758 | 267 | 90 |
Repurchase of common stock | (116) | (5,638) | (59) |
Net cash provided (used in) financing activities | 275,103 | 222,938 | (62,930) |
Net increase (decrease) in cash and cash equivalents | (32,508) | (15,888) | 67,461 |
Cash and cash equivalents, beginning of year | 110,925 | 126,813 | 59,352 |
Cash and cash equivalents, end of year | 78,417 | 110,925 | 126,813 |
SUPPLEMENTAL CASH FLOW DISCLOSURES | |||
Interest paid | 12,081 | 6,500 | 5,352 |
Income taxes paid | 12,127 | 14,700 | 9,425 |
Assets acquired (liabilities assumed) in acquisitions (See Note 23): | |||
Investment securities | 53,752 | 0 | 347,196 |
FRB / FHLB / TIB Stock | 2,369 | 0 | 1,765 |
Loans | 332,893 | 78,833 | 69,144 |
Core deposit intangible | 2,903 | 0 | 4,766 |
Deferred income tax | 4,794 | 0 | 0 |
Bank owned life insurance | 11,276 | 0 | 0 |
Other real estate owned | 0 | 0 | 752 |
Goodwill | 27,882 | 5,522 | 17,428 |
Fixed assets | 2,134 | 74 | 1,446 |
Other assets | 2,402 | 702 | 12,468 |
Deposits | (336,018) | 0 | (540,725) |
Other borrowings | (33,300) | (67,617) | (16,905) |
Other liabilities | (1,796) | (709) | (6,722) |
NONCASH INVESTING ACTIVITIES DURING THE PERIOD | |||
Transfers from loans to other real estate owned | 450 | 645 | 996 |
Loans held for sale transfer to loans held for investment | $ 0 | $ 2,936 | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 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, 2015 , the Company had 16 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), Seal Beach, Tustin, Riverside and Corona. 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 accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain amounts in the prior periods' financial statements and related footnote disclosures have been reclassified to conform to the current presentation with no impact to previously reported net income or stockholders' equity. Use of Estimates in the Preparation of Financial Statements - 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 relate to the determination of the allowance for loan losses, the fair value of stock-based compensation awards, the fair values of financial instruments and the status of contingencies. Cash and Cash Equivalents —Cash and cash equivalents include cash on hand, due from banks and fed funds sold. Interest bearing deposits with financial institutions represent mostly cash held at the Federal Reserve Bank of San Francisco. At December 31, 2015 , $71.9 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. 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 the estimated average life, which can fluctuate based on the anticipated prepayments on the underlying collateral of the securities. 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, 2015 or 2014 . Impairment of Investments —Declines in the fair value of individual held to maturity and available for sale securities below their cost that are other-than-temporary impairments ("OTTI") result in write-downs of the individual securities to their fair value. 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. If it is determined that an OTTI exists and either the Company intends to sell the security or it is likely the security will be required to sell before its anticipated recovery, the amount of the OTTI will be recognized in earnings. If the Company has the intent and ability to retain the security, the Company will determine the amount of the impairment related to credit loss and the amount related to other factors. The portion related to the credit loss will be recognized in earnings and the portion related to other factors will be included in other comprehensive income. The related write-downs are included in operations as realized losses in the category of other-than-temporary impairment loss on investment securities, net. Federal Home Loan Bank ("FHLB") Stock — The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Held for Sale — Small Business Administration ("SBA") loans that the Company has the intent to sell prior to maturity have been designated as held for sale at origination and are recorded at lower of cost or fair market value. Gains or losses are recognized upon the sale of the loans on a specific identification basis. Loan Servicing Asset — The Company typically sells the guaranteed portion of SBA loans and retains the unguaranteed portion (“retained interest”). A portion of the premium on sale of SBA loans is recognized as gain on sale of loans at the time of the sale by allocating the carrying amount between the asset sold and the retained interest, based on their relative fair values. The remaining portion of the premium is recorded as a discount on the retained interest and is amortized over the remaining life of the loan as an adjustment to yield. The retained interest, net of any discount, are included in loans held for investment—net of allowance for loan losses in the accompanying consolidated statements of financial condition. Servicing assets are recognized when SBA loans are sold with servicing retained with the income statement effect recorded in gains on sales of SBA loans. Servicing assets are initially recorded at fair value based on the present value of the contractually specified servicing fee, net of servicing costs, over the estimated life of the loan, using a discount rate. The Company’s servicing costs approximates the industry average servicing costs of 40 basis points. The servicing assets are subsequently amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The Company periodically evaluates servicing assets for impairment based upon the fair value of the rights as compared to carrying amount. 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. 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. 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, for all loan segments, 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. Certain Acquired Loans —As part of business acquisitions, the Bank acquires certain loans that have shown evidence of credit deterioration since origination. These acquired loans are recorded at the allocated fair value, such that there is no carryover of the seller’s allowance for loan losses. Such acquired loans are accounted for individually. The Bank estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. 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. 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. Goodwill and Core Deposit Intangible— Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate the necessity for such impairment tests to be performed. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Core deposit intangible assets arising from whole bank acquisitions are amortized on a straight-line amortization method over their estimated useful lives, which range from 6 to 10 years. 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, 2015 and 2014 , there was no valuation allowance deemed necessary against the Company’s deferred tax asset. 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 Statements of Comprehensive Income. Stock-Based Compensation —The Company recognizes compensation cost in the income statement for 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). A Black-Scholes model is utilized to estimate the fair value of stock options and the market price of the Company's common stock at the date of the grant is used for restricted stock awards. Use of Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of stock-based compensation awards, the fair values of financial instruments and the status of contingencies are particularly subject to change. Accounting Standards Adopted in 2015 In June 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-10, Technical Corrections and Improvements, to clarify the Accounting Standards Codification ("ASC"), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements. In January 2014, the FASB issued ASU No. 2014-04, Receivables-Troubled Debt Restructuring By Creditors (Subtopic 310-40): “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The Company adopted the provisions of ASU No. 2014-04 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. In January 2014, the FASB issued ASU No. 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): "Accounting for Investments in Qualified Affordable Housing Projects." This Update permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. As the Company accounts for such investments using the cost method, the update had no impact on the Company’s Consolidated Financial Statements. In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860):"Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." This Update aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The Update requires a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The Update also requires expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The Update is effective for interim or annual period beginning after December 15, 2014. All of the Company's repurchase agreements are typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. The Company adopted the provisions of ASU No. 2014-11 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. In August 2014, the FASB issued ASU No. 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): “Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure”. This Update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this Update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) At the time of fore0closure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. This Update is effective for interim and annual periods beginning after December 15, 2014 for public business entities and after December 15, 2015 for non public business entities. The Company adopted the provisions of ASU No. 2014-14 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. Recent Accounting Guidance Not Yet Effective On February 25, 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842). The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. This Update is generally effective for public business entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effects of ASU 2016-02 on its financial statements and disclosures. On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . Changes made to the current measurement model primarily affect the accounting for equity securities with readily determinable fair values, where changes in fair value will impact earnings instead of other comprehensive income. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. The Update also changes the presentation and disclosure requirements for financial instruments including a requirement that public business entities use exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. This Update is generally effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the effects of ASU 2016-01 on its financial statements and disclosures. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606). As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Update modifies the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. The Company does not expect these amendments to have a material effect on its financial statements. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The Update changes the balance sheet presentation for debt issuance costs. Under the new guidance, debt issuance costs should be reported as a deduction from debt liabilities rather than as a deferred charge classified as an asset. The Update is effective for us in first quarter 2016 with retrospective application. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. In August 2014, the FASB issued guidance within ASU 2014-15, Presentation of Financial Stat |
Regulatory Capital Requirements
Regulatory Capital Requirements and Other Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Requirements and Other Regulatory Matters | 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. New comprehensive regulatory capital rules for U.S. banking organizations pursuant to the capital framework of the Basel Committee on Banking Supervision, generally referred to as “Basel III”, became effective for the Company and the Bank on January 1, 2015, subject to phase-in periods for certain of their components and other provisions. The most significant of the provisions of the New Capital Rules which applied to the Company and the Bank were as follows: the phase-out of trust preferred securities from Tier 1 capital, the higher risk-weighting of high volatility and past due real estate loans and the capital treatment of deferred tax assets and liabilities above certain thresholds. As defined in applicable regulations and set forth in the table below, at December 31, 2015 , the Company and the Bank continue to exceed the “well capitalized” standards: Actual Minimum Required for Capital Adequacy Purposes Required to be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2015 Tier 1 leverage ratio (1) Bank $ 304,442 11.41 % $ 106,684 4.00 % $ 133,354 5.00 % Consolidated 254,280 9.52 % 106,886 4.00 % N/A N/A Common equity tier 1 risk-based capital ratio (1) Bank 304,442 12.35 % 110,954 4.50 % 160,267 6.50 % Consolidated 245,224 9.91 % 111,336 4.50 % N/A N/A Tier 1 risk-based capital ratio (1) Bank 304,442 12.35 % 147,938 6.00 % 197,251 8.00 % Consolidated 254,280 10.28 % 148,448 6.00 % N/A N/A Total risk-based capital ratio (1) Bank 322,361 13.07 % 197,251 8.00 % 246,564 10.00 % Consolidated 332,200 13.43 % 197,931 8.00 % N/A N/A At December 31, 2014 Tier 1 leverage ratio (1) Bank $ 221,523 11.29 % $ 78,466 4.00 % $ 98,083 5.00 % Consolidated 179,881 9.18 % 78,401 4.00 % N/A N/A Tier 1 risk-based capital ratio (1) Bank 221,523 12.72 % 69,650 4.00 % 104,475 6.00 % Consolidated 179,881 10.30 % 69,855 4.00 % N/A N/A Total risk-based capital ratio (1) Bank 234,120 13.45 % 139,300 8.00 % 174,126 10.00 % Consolidated 252,477 14.46 % 139,709 8.00 % N/A N/A (1) Beginning with March 31, 2015, the ratio is calculated under Basel III. For prior periods, the ratio was calculated under Basel I or not applicable. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities were as follows: December 31, 2015 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Available-for-sale: Municipal bonds $ 128,546 $ 1,796 $ (97 ) $ 130,245 Collateralized mortgage obligation 24,722 4 (183 ) 24,543 Mortgage-backed securities 126,443 153 (1,111 ) 125,485 Total available-for-sale 279,711 1,953 (1,391 ) 280,273 Held-to-maturity: Mortgage-backed securities 8,400 — (70 ) 8,330 Other 1,242 — — 1,242 Total held-to-maturity 9,642 — (70 ) 9,572 Total securities $ 289,353 $ 1,953 $ (1,461 ) $ 289,845 December 31, 2014 Amortized Unrealized Unrealized Estimated Cost Gain Loss Fair Value (in thousands) Available-for-sale: Municipal bonds $ 88,599 $ 1,235 $ (173 ) $ 89,661 Collateralized mortgage obligation $ 6,831 $ 31 $ — $ 6,862 Mortgage-backed securities 105,328 401 (614 ) 105,115 Total available-for-sale 200,758 1,667 (787 ) 201,638 At December 31, 2015 , mortgage-backed securities (“MBS”) with an estimated par value of $61.0 million and a fair value of $62.5 million were pledged as collateral for the Bank’s three inverse putable reverse repurchase agreements which totaled $28.5 million and Homeowner's Association ("HOA") reverse repurchase agreements which totaled $ 19.6 million . The Company reviews 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. We reviewed all securities in a loss position as of December 31, 2015 and 2014, and concluded their losses were a result of the level of market interest rates and not a result of credit deterioration or the underlying issuers ability to repay. Therefore there were no securities with OTTI as of December 31, 2015 or 2014. The Company did not realize any OTTI recoveries or losses in 2015 . The Company realized OTTI losses of $29,000 in 2014 and $4,000 in 2013 . During the years ended December 31, 2015 , 2014 and 2013 the Company recognized gross gains on sales of available-for-sale securities and held-to-maturity securities in the amount of $317,000 , $2.1 million and $2 million , respectively. During the years ended December 31, 2015 , 2014 and 2013 the Company recognized gross losses on sales of available-for-sale securities and held-to-maturity securities in the amount of $27,000 , $578,000 and $468,000 , respectively. The Company had net proceeds from the sale or maturity of available-for-sale securities and held-to-maturity securities of $27.6 million , $166 million and $234 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. 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, 2015 Less than 12 months 12 months or Longer Total Number Fair Value Gross Unrealized Holding Losses Number Fair Value Gross Unrealized Holding Losses Number Fair Value Gross Unrealized Holding Losses (dollars in thousands) Available-for-sale: Municipal bonds 32 $ 15,516 $ (61 ) 6 $ 3,349 $ (36 ) 38 $ 18,865 $ (97 ) Collateralized mortgage obligation 5 22,771 (183 ) — — — 5 22,771 (183 ) Mortgage-backed securities 34 83,488 (679 ) 3 12,935 (432 ) 37 96,423 (1,111 ) Total available-for-sale 71 $ 121,775 $ (923 ) 9 $ 16,284 $ (468 ) 80 $ 138,059 $ (1,391 ) Held-to-maturity: Mortgage-backed securities 1 $ 8,330 $ (70 ) — $ — $ — 1 $ 8,330 $ (70 ) Total held-to-maturity 1 $ 8,330 $ (70 ) — $ — $ — 1 $ 8,330 $ (70 ) Total securities 72 $ 130,105 $ (993 ) 9 $ 16,284 $ (468 ) 81 $ 146,389 $ (1,461 ) December 31, 2014 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (dollars in thousands) Available-for-sale: Municipal bonds 35 $ 18,129 $ (117 ) 16 $ 6,510 $ (56 ) 51 $ 24,639 $ (173 ) Mortgage-backed securities 7 24,353 (105 ) 4 18,842 (509 ) 11 43,195 (614 ) Total available-for-sale 42 $ 42,482 $ (222 ) 20 $ 25,352 $ (565 ) 62 $ 67,834 $ (787 ) The amortized cost and estimated fair value of investment securities available for sale at December 31, 2015 , by contractual maturity are shown in the table below. One Year or Less More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Available-for-sale: Municipal bonds $ 1,067 $ 1,068 $ 26,998 $ 27,134 $ 43,968 $ 44,695 $ 56,513 $ 57,348 $ 128,546 $ 130,245 Collateralized mortgage obligation — — — — — — 24,722 24,543 24,722 24,543 Mortgage-backed securities — — — — 27,662 27,612 98,781 97,873 126,443 125,485 Total available-for-sale 1,067 1,068 26,998 27,134 71,630 72,307 180,016 179,764 279,711 280,273 Held-to-maturity: Mortgage-backed securities — — — — — — 8,400 8,330 8,400 8,330 Other — — — — — — 1,242 1,242 1,242 1,242 Total held-to-maturity — — — — — — 9,642 9,572 9,642 9,572 Total securities $ 1,067 $ 1,068 $ 26,998 $ 27,134 $ 71,630 $ 72,307 $ 189,658 $ 189,336 $ 289,353 $ 289,845 Unrealized gains and losses on investment securities available for sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At December 31, 2015 , the Company had accumulated other comprehensive income of $562,000 , or $332,000 net of tax, compared to accumulated other comprehensive loss of $880,000 or $518,000 net of tax, at December 31, 2014 . FHLB, FRB, and other stock At December 31, 2015 , the Company had $11.4 million in Federal Home Loan Bank ("FHLB") stock, $ 7.9 million in Federal Reserve Bank ("FRB") stock, and $ 3.0 million in other stock, all carried at cost. During the year ended December 31, 2015 , the FHLB repurchased $16.4 million of the Company’s excess FHLB stock through their stock repurchase program. During the years ended December 31, 2014 and 2013 , the FHLB had repurchased $3.4 million and $ 4.3 million respectively, of the Company’s excess FHLB stock through their stock repurchase program. The Company evaluates its investments in FHLB and other stock for impairment periodically, including their capital adequacy and overall financial condition. No impairment losses have been recorded through December 31, 2015. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans | Loans The following table presents the composition of the loan portfolio as of the dates indicated: For the Years Ended December 31, 2015 2014 (in thousands) Business loans: Commercial and industrial $ 309,741 $ 228,979 Franchise 328,925 199,228 Commercial owner occupied 294,726 210,995 SBA 62,256 28,404 Warehouse facilities 143,200 113,798 Real estate loans: Commercial non-owner occupied 421,583 359,213 Multi-family 429,003 262,965 One-to-four family 80,050 122,795 Construction 169,748 89,682 Land 18,340 9,088 Other loans 5,111 3,298 Total gross loans 2,262,683 1,628,445 Less loans held for sale, net 8,565 — Total gross loans held for investment 2,254,118 1,628,445 Plus (less): Deferred loan origination costs and premiums, net 197 177 Allowance for loan losses (17,317 ) (12,200 ) Loans held for investment, net $ 2,236,998 $ 1,616,422 The Company originates SBA loans with the intent to sell the guaranteed portion of the loan prior to maturity and therefore designates them as held for sale. From time to time, the Company may purchase or sell other types of loans in order to manage concentrations, maximize interest income, change risk profiles, improve returns and generate liquidity. 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 $188 million at December 31, 2015 and $95.2 million at December 31, 2014 . 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 $94.1 million for secured loans and $56.5 million for unsecured loans at December 31, 2015 . At December 31, 2015 , the Bank’s largest aggregate outstanding balance of loans-to-one borrower was $30.3 million of secured credit. 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, Palm Desert National Bank in 2012 and Independence Bank in 2015 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, 2015 , and 2014 was as follows: For the Years Ended December 31, 2015 2014 (in thousands) Business loans: Commercial and industrial $ 289 $ 94 Commercial owner occupied 884 546 Real estate loans: Commercial non-owner occupied 2,088 956 One-to-four family 85 5 Total purchase credit impaired $ 3,346 $ 1,601 The following table summarizes the accretable yield on the purchased credit impaired for the years ended December 31, 2015 , 2014 and 2013 : For the Years Ended December 31, 2015 2014 2013 (in thousands) Balance at the beginning of period $ 1,403 $ 1,676 $ 2,276 Accretable yield at acquisition 602 — — Accretion (385 ) (255 ) (557 ) Disposals and other (249 ) (18 ) (648 ) Change in accretable yield 1,355 — 605 Balance at the end of period $ 2,726 $ 1,403 $ 1,676 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 Investment Unpaid Principal Balance With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans Average Recorded Investment Interest Income Recognized (in thousands) December 31, 2015 Business loans: Commercial and industrial $ 313 $ 578 $ — $ 313 $ — $ 90 $ 29 Franchise 1,630 2,394 1,461 169 731 1,386 3 Commercial owner occupied 536 883 — 536 — 415 67 Real estate loans: Commercial non-owner occupied 214 329 — 214 — 430 19 One-to-four family 70 98 — 70 — 204 5 Land 21 37 — 21 — 13 — Totals $ 2,784 $ 4,319 $ 1,461 $ 1,323 $ 731 $ 2,538 $ 123 December 31, 2014 Business loans: Commercial and industrial $ — $ — $ — $ — $ — $ 11 $ — Commercial owner occupied 388 440 — 388 — 514 46 SBA — — — — — 5 — Real estate loans: Commercial non-owner occupied 848 1,217 — 848 — 908 85 Multi-family — — — — — — — One-to-four family 236 256 — 236 — 440 17 Totals $ 1,472 $ 1,913 $ — $ 1,472 $ — $ 1,878 $ 148 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 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. 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. We sometimes modify or restructure loans when the borrower is experiencing financial difficulties by making a concession to the borrower in the form of changes in the amortization terms, reductions in the interest rates, the acceptance of interest only payments and, in limited cases, concessions to the outstanding loan balances. These loans are classified as troubled debt restructurings (“TDRs”) and considered impaired loans. TDRs are loans modified for the purpose of alleviating temporary impairments to the borrower’s financial condition or cash flows. A workout plan between us and the borrower is designed to provide a bridge for borrower cash flow shortfalls in the near term. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a time frame of at least six months and the ultimate collectability of the total contractual restructured principal and interest in no longer in doubt. These loans, while no longer considered a TDR, are still considered impaired loans. The Company had no troubled debt restructures at December 31, 2015 . 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 $4.0 million , $1.4 million and $2.3 million at December 31, 2015 , 2014 and 2013 , respectively. If such loans had been performing in accordance with their original terms, the Company would have recorded additional loan interest income of $279,000 in 2015 , $151,000 in 2014 , and $311,000 in 2013 . The Company did not record income from the receipt of cash payments related to nonaccruing loans during the years ended December 31, 2015 , 2014 and 2013 . The Company had no loans 90 day or more past due and still accruing at December 31, 2015 or 2014 . 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 classifications represent assets with a level of credit quality which contain no well-defined deficiency or weakness. • Special Mention assets do not currently expose the Bank to a sufficient risk to warrant classification in one of the adverse categories, but possess correctable deficiencies or potential weaknesses deserving management’s close attention. • Substandard assets are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. These assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful credits have all the weaknesses inherent in substandard credits, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. • Loss assets are those that are considered uncollectible and of such little value that their continuance as assets is not warranted. Amounts classified as loss are promptly charged off. The 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 Pass Special Mention Substandard Doubtful Total Gross Loans December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 306,513 $ 73 $ 3,155 $ — $ 309,741 Franchise 327,295 — 169 1,461 328,925 Commercial owner occupied 286,270 627 7,829 — 294,726 SBA 62,256 — — — 62,256 Warehouse facilities 143,200 — — — 143,200 Real estate loans: Commercial non-owner occupied 418,917 — 2,666 — 421,583 Multi-family 425,616 — 3,387 — 429,003 One-to-four family 78,997 — 1,053 — 80,050 Construction 169,748 — — — 169,748 Land 18,319 — 21 — 18,340 Other loans 5,111 — — — 5,111 Totals $ 2,242,242 $ 700 $ 18,280 $ 1,461 $ 2,262,683 Pass Special Mention Substandard Doubtful Total Gross Loans December 31, 2014 (in thousands) Business loans: Commercial and industrial $ 227,151 $ — $ 1,828 $ — $ 228,979 Franchise 199,228 — — — 199,228 Commercial owner occupied 202,390 — 8,605 — 210,995 SBA 28,132 272 — — 28,404 Warehouse facilities 113,798 — — — 113,798 Real estate loans: Commercial non-owner occupied 355,274 — 3,939 — 359,213 Multi-family 261,956 501 508 — 262,965 One-to-four family 122,146 — 649 — 122,795 Construction 89,682 — — — 89,682 Land 9,088 — — — 9,088 Other loans 3,298 — — — 3,298 Totals $ 1,612,143 $ 773 $ 15,529 $ — $ 1,628,445 Days Past Due Current 30-59 60-89 90+ Total Gross Loans Non-accruing December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 309,464 $ 20 $ — $ 257 $ 309,741 $ 463 Franchise 327,295 — — 1,630 328,925 1,630 Commercial owner occupied 294,371 — 355 — 294,726 536 SBA 62,256 — — — 62,256 — Warehouse facilities 143,200 — — — 143,200 — Real estate loans: Commercial non-owner occupied 421,369 214 — — 421,583 1,164 Multi-family 429,003 — — — 429,003 — One-to-four family 79,915 89 — 46 80,050 155 Construction 169,748 — — — 169,748 — Land 18,319 — — 21 18,340 21 Other loans 5,111 — — — 5,111 1 Totals $ 2,260,051 $ 323 $ 355 $ 1,954 $ 2,262,683 $ 3,970 Days Past Due Current 30-59 60-89 90+ Total Gross Loans Non-accruing December 31, 2014 Business loans: Commercial and industrial $ 228,955 $ — $ 24 $ — $ 228,979 $ — Franchise 199,228 — — — 199,228 — Commercial owner occupied 210,995 — — — 210,995 514 SBA 28,404 — — — 28,404 — Warehouse facilities 113,798 — — — 113,798 — Real estate loans: Commercial non-owner occupied 359,213 — — — 359,213 848 Multi-family 262,965 — — — 262,965 — One-to-four family 122,722 19 — 54 122,795 82 Construction 89,682 — — — 89,682 — Land 9,088 — — — 9,088 — Other loans 3,297 1 — — 3,298 — Totals $ 1,628,347 $ 20 $ 24 $ 54 $ 1,628,445 $ 1,444 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Provision for Loan and Lease Losses [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The Company’s ALLL covers estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated 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 Company's base ALLL factors are determined by management using the Bank's annualized actual trailing charge-off data over intervals ranging from 84 72 , 36 , 24 , 12 and 6 months. Adjustments to those base factors are made for relevant internal and external factors. Those factors may include: • Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment, • Changes in the nature and volume of the loan portfolio, including new types of lending, • Changes in volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans, and • The existence and effect of concentrations of credit, and changes in the level of such concentrations. The resulting total ALLL factor is compared for reasonableness against the 10 -year average, 15 -year average, and trailing 12 month total charge-off data for all Federal Deposit Insurance Corporation (“FDIC”) insured commercial banks and savings institutions based in California. These factors are applied to balances graded pass-1through 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 and Industrial Franchise Commercial Owner Occupied SBA Warehouse Facilities Commercial Non-owner Occupied Multi-family One-to-four Family Construction Land Other Loans Total (dollars in thousands) Balance, December 31, 2014 $ 2,646 $ 1,554 $ 1,757 $ 568 $ 546 $ 2,007 $ 1,060 $ 842 $ 1,088 $ 108 $ 24 $ 12,200 Charge-offs (484 ) (764 ) — — — (116 ) — (16 ) — — — (1,380 ) Recoveries 47 — — 8 — 3 — 13 — — 1 72 Provisions for (reduction in) loan losses 1,240 2,334 113 924 213 154 523 (141 ) 942 125 (2 ) 6,425 Balance, December 31, 2015 $ 3,449 $ 3,124 $ 1,870 $ 1,500 $ 759 $ 2,048 $ 1,583 $ 698 $ 2,030 $ 233 $ 23 $ 17,317 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ 731 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 731 General portfolio allocation 3,449 2,393 1,870 1,500 759 2,048 1,583 698 2,030 233 23 16,586 Loans individually evaluated for impairment 313 1,630 536 — — 214 — 70 — 21 — 2,784 Specific reserves to total loans individually evaluated for impairment — % 30.53 % — % — % — % — % — % — % — % — % — % 16.93 % Loans collectively evaluated for impairment $ 309,428 $ 327,295 $ 294,190 $ 62,256 $ 143,200 $ 421,369 $ 429,003 $ 79,980 $ 169,748 $ 18,319 $ 5,111 $ 2,259,899 General reserves to total loans collectively evaluated for impairment 1.11 % 0.73 % 0.64 % 2.41 % 0.53 % 0.49 % 0.37 % 0.87 % 1.20 % 1.27 % 0.45 % 0.73 % Total gross loans $ 309,741 $ 328,925 $ 294,726 $ 62,256 $ 143,200 $ 421,583 $ 429,003 $ 80,050 $ 169,748 $ 18,340 $ 5,111 $ 2,262,683 Total allowance to gross loans 1.11 % 0.95 % 0.63 % 2.41 % 0.53 % 0.49 % 0.37 % 0.87 % 1.20 % 1.27 % 0.45 % 0.77 % Commercial and Industrial Franchise Commercial Owner Occupied SBA Warehouse Facilities Commercial Non-owner Occupied Multi-family One-to-four Family Construction Land Other Loans Total (dollars in thousands) Balance, December 31, 2013 $ 1,968 $ — $ 1,818 $ 151 $ 392 $ 1,658 $ 817 $ 1,099 $ 136 $ 127 $ 34 $ 8,200 Charge-offs (223 ) — — — — (365 ) — (195 ) — — — (783 ) Recoveries 42 — — 4 — — — 34 — — 19 99 Provisions for (reduction in) loan losses 859 1,554 (61 ) 413 154 714 243 (96 ) 952 (19 ) (29 ) 4,684 Balance, December 31, 2014 $ 2,646 $ 1,554 $ 1,757 $ 568 $ 546 $ 2,007 $ 1,060 $ 842 $ 1,088 $ 108 $ 24 $ 12,200 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — General portfolio allocation $ 2,646 $ 1,554 $ 1,757 $ 568 $ 546 $ 2,007 $ 1,060 $ 842 $ 1,088 $ 108 $ 24 $ 12,200 Loans individually evaluated for impairment $ — $ — $ 388 $ — $ — $ 848 $ — $ 236 $ — $ — $ — $ 1,472 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % — % — % — % — % — % — % Loans collectively evaluated for impairment $ 228,979 $ 199,228 $ 210,607 $ 28,404 $ 113,798 $ 358,365 $ 262,965 $ 122,559 $ 89,682 $ 9,088 $ 3,298 $ 1,626,973 General reserves to total loans collectively evaluated for impairment 1.16 % 0.78 % 0.83 % 2.00 % 0.48 % 0.56 % 0.40 % 0.69 % 1.21 % 1.19 % 0.73 % 0.75 % Total gross loans $ 228,979 $ 199,228 $ 210,995 $ 28,404 $ 113,798 $ 359,213 $ 262,965 $ 122,795 $ 89,682 $ 9,088 $ 3,298 $ 1,628,445 Total allowance to gross loans 1.16 % 0.78 % 0.83 % 2.00 % 0.48 % 0.56 % 0.40 % 0.69 % 1.21 % 1.19 % 0.73 % 0.75 % 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 Commercial and Industrial Franchise Commercial Owner Occupied SBA Warehouse Facilities Commercial Non-owner Occupied Multi-family One-to-four Family Construction Land Other Loans Total (dollars in thousands) 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 — % — % — % — % — % 0.10 % — % 15.23 % — % — % — % 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 % 0.50 % 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 % 0.50 % 0.35 % 0.76 % 1.04 % 1.67 % 0.89 % 0.66 % |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned was $1.2 million at December 31, 2015 , $1.0 million at December 31, 2014 and $1.2 million at December 31, 2013 . The following summarizes the activity in the other real estate owned for the years ended December 31: 2015 2014 2013 (in thousands) Balance, beginning of year $ 1,037 $ 1,186 $ 2,258 Additions / foreclosures 450 645 996 Sales (285 ) (794 ) (1,488 ) Loss on sale — — (226 ) Write downs (41 ) — (354 ) Balance, end of year $ 1,161 $ 1,037 $ 1,186 The Company had no foreclosed residential real estate property or a recorded investment in consumer mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in process as of December 31, 2015 and 2014 . |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment consisted of the following at December 31: 2015 2014 (in thousands) Land $ 200 $ 200 Premises 3,528 3,340 Leasehold improvements 5,901 5,491 Furniture, fixtures and equipment 11,263 9,372 Automobiles 187 188 Subtotal 21,079 18,591 Less: accumulated depreciation 11,831 9,426 Total $ 9,248 $ 9,165 Depreciation expense for premises and equipment was $2.4 million for 2015 , $2.2 million for 2014 and $1.9 million for 2013 . |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangibles | Goodwill and Core Deposit Intangibles At December 31, 2015 , the Company had goodwill of $50.8 million , of which $27.9 million was related to the Independence Bank acquisition. The following table presents changes in the carrying value of goodwill for the periods indicated: 2015 2014 (in thousands) Balance, beginning of year $ 22,950 $ 17,428 Goodwill acquired during the year 27,882 5,522 Impairment losses — — Balance, end of year $ 50,832 $ 22,950 Accumulated impairment losses at end of year — — The Company’s goodwill was evaluated for impairment during the fourth quarter of 2015 , with no impairment loss recognition considered necessary. The estimated aggregate amortization expense related to our core deposit intangible assets for each of the next five years is $1.4 million , $1.4 million , $1.3 million , $1.0 million , and $1.0 million . The Company’s core deposit intangibles were evaluated for impairment during the fourth quarter of 2015 , taking into consideration the actual deposit runoff of acquired deposits to the level of deposit runoff expected at the date of merger. Based on the Company’s evaluation, no impairment has taken place on the core deposit intangibles. The following table presents the changes in the gross amounts of core deposit intangibles and the related accumulated amortization for the dates and periods indicated: 2015 2014 2013 (in thousands) Gross amount of CDI: Balance, beginning of year $ 7,876 $ 7,876 $ 3,110 Additions due to acquisitions 2,906 — 4,766 Balance, end of year 10,782 7,876 7,876 Accumulated Amortization Balance, beginning of year (2,262 ) (1,248 ) (484 ) Amortization (1,350 ) (1,014 ) (764 ) Balance, end of year (3,612 ) (2,262 ) (1,248 ) Net CDI, end of year $ 7,170 $ 5,614 $ 6,628 |
Bank Owned Life Insurance
Bank Owned Life Insurance | 12 Months Ended |
Dec. 31, 2015 | |
Investments, All Other Investments [Abstract] | |
Bank Owned Life Insurance | Bank Owned Life Insurance At December 31, 2015 and 2014 the Company had $39.2 million and $26.8 million , respectively of Bank-Owned Life Insurance (“BOLI”). The Company recorded non-interest income associated with the BOLI policies of $1.3 million , $914,000 and $758,000 for the years ending December 31, 2015 , 2014 and 2013 , respectively. The increase in the Company’s balance in 2015 by $12.4 million was primarily from the $11.3 million BOLI policies acquired from Independance Bank. BOLI involves the purchasing of life insurance by the Company on a selected group of employees where the Company is the owner and beneficiary of the policies. BOLI is recorded as an asset at its cash surrender value. Increases in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income and are not subject to income tax, as long as they are held for the life of the covered parties. |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Qualified Affordable Housing Project Investments | Qualified Affordable Housing Project Investments The Company's investment in Qualified Affordable Housing Projects that generate Low Income Housing Tax Credits at December 31, 2015 was $8.0 million with a recorded liability of $2.4 million in funding obligations. The Company has invested in two separate LIHTC projects which provide the Company with CRA credit. Additionally, the investment in LIHTC projects provides the Company with tax credits and with operating loss tax benefits over an approximately 15 year period. Non of the original investment will be repaid. The investment in LIHTC projects is being accounted for using the cost method, under which the Company amortizes as non-interest expense the initial cost of the investment equally over the expected time period in which tax credits and other tax benefits will be received and recognizes the tax credits and operating loss tax benefits in the income statement as a component of income tax expense (benefit). The following table presents the Company's original investment in the LIHTC projects, the current recorded investment balance, and the unfunded liability balance of each investment at December 31, 2015 and 2014 . In addition, the table reflects the tax credits and tax benefits recorded by the Company during 2015 and 2014 ; the amortization of the investment and the net impact to the Company's income tax provision for 2015 and 2014 . Qualified Affordable Housing Projects at Original Investment Value Current Recorded Investment Unfunded Liability Obligation Tax Credits and Tax Deductions (1) Amortization of Investments (2) Net Income Tax Benefit WNC Institutional Tax Credit $ 5,000 $ 3,750 $ 316 $ 917 $ 500 $ (643 ) WNC Institutional Tax Credit 5,000 4,250 2,111 819 500 (531 ) Total - Investments in $ 10,000 $ 8,000 $ 2,427 $ 1,736 $ 1,000 $ (1,174 ) Qualified Affordable Housing Projects at Original Investment Value Current Recorded Investment Unfunded Liability Obligation Tax Credits and Tax Deductions (1) Amortization of Investments (2) Net Income Tax Benefit WNC Institutional Tax Credit $ 5,000 $ 4,250 $ 774 $ 887 $ 500 $ (626 ) WNC Institutional Tax Credit 5,000 4,750 3,266 388 250 (268 ) Total - Investments in $ 10,000 $ 9,000 $ 4,040 $ 1,275 $ 750 $ (894 ) (1) The amounts reflected in this column represent both the tax credits, as well as the tax benefits generated by the Qualified Affordable Housing Projects operating loss for the year, which are included in the calculation of income tax expense. (2) This amount represents the amortization of the investment cost of the LIHTC, included in non-interest expense. |
Deposit Accounts
Deposit Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposit Accounts | Deposit Accounts Deposit accounts and weighted average interest rates consisted of the following at December 31: 2015 Weighted 2014 Weighted (dollars in thousands) Transaction accounts Noninterest-bearing checking $ 711,771 — % $ 456,754 — % Interest-bearing checking 134,999 0.11 % 131,635 0.11 % Money market 743,871 0.35 % 526,256 0.32 % Savings 83,507 0.15 % 74,508 0.14 % Total transaction accounts 1,674,148 0.17 % 1,189,153 0.16 % Certificates of deposit accounts Less than 100,000 126,704 0.79 % 123,862 0.91 % $100,000 through $250,000 166,397 0.91 % 163,819 1.00 % Greater than $250,000 227,874 0.72 % 153,992 0.76 % Total certificates of deposit accounts 520,975 0.80 % 441,673 0.89 % Total deposits $ 2,195,123 0.32 % $ 1,630,826 0.36 % The aggregate annual maturities of certificates of deposit accounts at December 31, 2015 are as follows: 2015 Balance Weighted Average Interest Rate (dollars in thousands) Within 3 months $ 79,798 0.55 % 4 to 6 months 131,699 0.81 % 7 to 12 months 188,046 0.78 % 13 to 24 months 108,194 0.98 % 25 to 36 months 8,365 1.09 % 37 to 60 months 4,237 1.10 % Over 60 months 636 0.97 % Total $ 520,975 0.80 % Interest expense on deposit accounts for the years ended December 31 is summarized as follows: 2015 2014 2013 (dollars in thousands) Checking accounts $ 165 $ 161 $ 110 Savings 141 110 103 Money market accounts 2,426 1,443 1,043 Certificates of deposit accounts 3,898 3,323 2,809 Total $ 6,630 $ 5,037 $ 4,065 Accrued interest on deposits, which is included in accrued expenses and other liabilities, was $124,195 at December 31, 2015 and $136,000 at December 31, 2014 . |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Federal Home Loan Bank Advances [Abstract] | |
Federal Home Loan Bank Advances and Other Borrowings | Federal Home Loan Bank Advances and Other Borrowings As of December 31, 2015 , 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 $1.2 billion , of which $385 million was available for borrowing. The available for borrowing was based on collateral pledged by real estate loans and securities with an aggregate balance of $620 million and FHLB stock of $11.4 million . At December 31, 2015 , the Company had $98 million in overnight FHLB advances and $50 million in term advances, compared to $20 million in overnight FHLB advances and $ 50 million in term advances at December 31, 2014 . The term advances mature during 2016. The following table summarizes activities in advances from the FHLB for the periods indicated: Year Ended December 31, 2015 2014 (dollars in thousands) Average balance outstanding $ 139,542 $ 70,296 Maximum amount outstanding at any month-end during the year 340,000 210,000 Balance outstanding at end of year 148,000 70,000 Weighted average interest rate during the year 0.39 % 0.26 % 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, 2015 and 2014 , 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 $34.0 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, 2015 , the Company sold securities under agreement to repurchase of $19.6 million with weighted average rate of 0.03% and collateralized by investment securities with fair value of approximately $28.5 million . At December 31, 2015 , the Bank had unsecured lines of credit with seven correspondent banks for a total amount of $120 million and access through the Federal Reserve discount window to borrow $3.3 million . At December 31, 2015 , the Company had no outstanding balances against these lines compared to $1.5 million in outstanding balance at December 31, 2014 . The following summarizes activities in other borrowings: Year Ended December 31, 2015 2014 (dollars in thousands) Average balance outstanding $ 48,490 $ 47,398 Maximum amount outstanding at any month-end during the year 49,925 49,712 Balance outstanding at end of year 48,125 46,643 Weighted average interest rate during the year 1.95 % 2.00 % |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures | Subordinated Debentures In August 2014, the Corporation issued $60 million in aggregate principal amount of 5.75% Subordinated Notes Due 2024 (the “Notes”) in a private placement transaction to institutional accredited investors (the “Private Placement”). The Corporation contributed $50 million of net proceeds from the Private Placement to the Bank to support general corporate purposes. The Notes will bear interest at an annual fixed rate of 5.75% , with the first interest payment on the Notes occurring on March 3, 2015, and interest will be paid semiannually each March 3 and September 3 until September 3, 2024. The Notes can only be redeemed, partially or in whole, prior to the maturity date if the notes do not constitute Tier 2 Capital (for purposes of capital adequacy guidelines of the Board of Governors of the Federal Reserve). Principal and interest are due upon early redemption. In connection with the Private Placement, the Corporation obtained ratings from Kroll Bond Rating Agency (“KBRA”). KBRA assigned investment grade ratings of BBB+ and BBB for the Corporation's senior secured debt and subordinated debt, respectively, and a senior deposit rating of A- for the Bank. In March 2004 the Corporation issued $10.3 million 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 3-month LIBOR plus 2.75% for a rate of 3.07% at December 31, 2015 and 2.98% at December 31, 2014 . 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. The Corporation is not allowed to consolidate PPBI Trust I into the Company’s consolidated financial statements. The resulting effect on the Company’s consolidated financial statements is to report only the Subordinated Debentures as a component of the Company’s liabilities. The following table summarizes activities for our subordinated debentures for the periods indicated: Year Ended December 31, 2015 2014 (dollars in thousands) Average balance outstanding $ 70,310 $ 30,858 Maximum amount outstanding at any month-end during the year 70,310 70,310 Balance outstanding at end of year 70,310 70,310 Weighted average interest rate during the year 5.36 % 5.00 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes for the years ended December 31 consisted of the following: 2015 2014 2013 (in thousands) Current income tax provision: Federal $ 12,460 $ 9,628 $ 7,008 State 4,144 3,466 2,329 Total current income tax provision 16,604 13,094 9,337 Deferred income tax provision (benefit): Federal (887 ) (1,789 ) (3,129 ) State (508 ) (586 ) (621 ) Total deferred income tax provision (benefit) (1,395 ) (2,375 ) (3,750 ) Total income tax provision $ 15,209 $ 10,719 $ 5,587 A reconciliation from statutory federal income taxes to the Company's effective income taxes for the years ended December 31 is as follows: 2015 2014 2013 (in thousands) Statutory federal income tax provision $ 14,253 $ 9,459 $ 5,103 California franchise tax, net of federal income tax effect 2,886 1,926 1,027 Cash surrender life insurance (483 ) (324 ) (277 ) Tax exempt interest (742 ) (614 ) (718 ) Merger costs 447 410 164 LIHTC investments (871 ) (728 ) (237 ) Other (281 ) 590 525 Total income tax provision $ 15,209 $ 10,719 $ 5,587 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: 2015 2014 2013 (in thousands) Deferred tax assets: Accrued expenses $ 1,717 $ 1,802 $ 891 Net operating loss 5,192 2,703 3,353 Allowance for loan losses, net of bad debt charge-offs 6,252 5,158 3,336 Deferred compensation 2,547 1,750 1,896 State taxes 1,451 1,238 858 Depreciation 651 321 (216 ) Other-than-temporary impairment — — 684 Stock based compensation 639 313 273 Total deferred tax assets 18,449 13,285 11,075 Deferred tax liabilities: Deferred FDIC gain (1,656 ) (1,731 ) (1,944 ) Core deposit intangibles (2,266 ) (1,518 ) (1,813 ) Unrealized (gain) loss on available for sale securities (231 ) (362 ) 2,160 Other (2,785 ) (291 ) (1,001 ) Total deferred tax liabilities (6,938 ) (3,902 ) (2,598 ) Net deferred tax asset $ 11,511 $ 9,383 $ 8,477 At December 31, 2015 , there was no valuation allowance against the Company’s deferred tax asset. The Company has a net operating loss carry forward of approximately $13.0 million for federal income tax purposes which expires in 2034. In addition, the Company has a net operating loss carry forward of approximately $10.1 million for California franchise tax purposes. The net operating loss deduction for the state is scheduled to expire in 2034. Under Internal Revenue Code Section 382, which has also been adopted under California law, if during any three years period there is more than a 50 percent age 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 annual usable net operating loss carry forward for the following year is approximately $3.6 million . As of December 31, 2015 , tax years for 2012 through 2014 remain open to audit by the Internal Revenue Service and 2011 through 2014 by various state taxing agencies. |
Commitments, Contingencies and
Commitments, Contingencies and Concentrations of Risk | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Concentrations of Risk | Commitments, Contingencies and Concentrations of Risk Lease Commitments – The Company leases a portion of its facilities from non-affiliates under operating leases expiring at various dates through 2023. 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, Amount (in thousands) 2016 $ 3,658 2017 3,095 2018 2,557 2019 2,351 2020 711 Thereafter 400 Total $ 12,772 Rental expense under all operating leases totaled $3.8 million for 2015 , $2.8 million for 2014 , and $2.4 million for 2013 . Legal Proceedings –The Company is not involved in any material 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. 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 a three years 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, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | 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 2015 , 2014 and 2013 , 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 $769,000 for 2015 , $540,000 for 2014 and $401,000 for 2013 . 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 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. As of December 31, 2015 , there are 318,355 options outstanding on the 2004 Plan with zero available for grant. The 2004 Plan terminated in February 2014. 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 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, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights. The options granted pursuant to the 2012 Plan vest at a rate of 33.3% per year. In May 2014, the Corporation’s stockholders approved an amendment to the 2012 Plan to increase the shares available under the plan by 800,000 shares to total 1,420,000 shares. As of December 31, 2015 , there are 740,731 options outstanding on the 2012 Plan with 816,105 available for grant. In May 2015, the Corporation's stockholders approved an amendment to the 2012 Plan to permit the grant of performance-based awards, including equity compensation awards that may not be subject to the deduction limitation of Section 162(m) of the Internal Revenue Code. The performance-based awards include (i) both performance-based equity compensation awards and performance-based cash bonus payments and (ii) restricted stock units. 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.” Stock Options Below is a summary of the stock option activity in the Plans for the year ended December 31, 2015 : 2015 Number of Stock Options Outstanding Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic value (in years) (in thousands) Outstanding at January 1, 2015 925,084 $ 10.41 Granted 249,000 15.16 Exercised (8,066 ) 8.70 Forfeited and Expired (106,932 ) 12.31 Outstanding at December 31, 2015 1,059,086 $ 11.35 6.3 $ 10,489 Vested and exercisable at December 31, 2015 635,069 $ 9.09 4.9 $ 7,719 The total intrinsic value of options exercised during the years ended December 31, 2015 , 2014 and 2013 was $60,000 , $536,000 and $277,000 , respectively. The amount charged against compensation expense in relation to the stock options was $905,000 for 2015 , $514,000 for 2014 and $943,000 for 2013 . At December 31, 2015 , unrecognized compensation expense related to the options is approximately $1.0 million . Options granted under the Option Plans during 2015 , 2014 and 2013 were valued using the Black-Scholes model with the following average assumptions: Year Ended December 31, 2015 2014 2013 Expected volatility 29.47% 16.2% - 18.5% 22.2% - 25.82% Expected term 6.00 Years 6.00 Years 10.00 Years Expected dividends None None None Risk free rate 1.39% 1.81% - 2.10% 1.78% - 2.67% Weighted-average grant date fair value $4.73 $3.28 - $3.67 $3.93 - $5.87 The following is the listing of the input variables and the assumptions utilized by the Company for each parameter used in the Black-Scholes option pricing model in prior years: Risk-free Rate – The risk-free rate for periods within the contractual life of the option have been based on the U.S. Treasury rate that matures on the expected assigned life of the option at the date of the grant. Expected Life of Options – The expected life of options is based on the period of time that options granted are expected to outstanding. Expected Volatility –The expected volatility has been based on the historical volatility for the Company’s shares. Dividend Yield – The dividend yield has been based on historical experience and expected future changes on dividend payouts. The Company does not expect to declare or pay dividends on its common stock within the foreseeable future. Restricted Stock Below is a summary of the restricted stock activity in the Plans for the years ended December 31, 2015 : 2015 Shares Weighted Average Grant-Date Fair Value per share Unvested at the beginning of the year — $ — Granted 60,000 15.46 Vested — — Unvested at the end of the year 60,000 $ 15.46 Compensation expense of $260,000 was recorded related to the above restricted stock grants for the year ended December 31, 2015 . Restricted stock awards are valued at the closing stock price on the date of grant and are expensed to stock based compensation expense over the period for which the related service is performed. The total grant date fair value of awards was $927,500 for 2015 awards. At December 31, 2015 , unrecognized compensation expense related to restricted stock is approximately $689,000 . Other Plans 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. Directors’ Deferred Compensation Plan —The Bank created a Directors’ Deferred Compensation Plan in September 2006 which allows directors to defer board of directors’ fees. In addition, the Company contributes to the plan $4,000 per year for non-executive directors that do not receive Company provided long-term care insurance. The deferred compensation is credited with interest by the Bank at prime minus one percent and the accrued liability is payable upon retirement or resignation. The Directors’ Deferred Compensation Plan is unfunded. The amounts expensed in 2015 , 2014 , and 2013 for all of these plans amounted to $555,000 and $461,000 , and 255,724 respectively. As of December 31, 2015 , 2014 , and 2013 , $5.4 million , $4.0 million , and $4.4 million , respectively, were recorded in other liabilities on the consolidated statements of condition for each of these plans. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | 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 $603,000 at December 31, 2015 and $397,000 at December 31, 2014 . The Company’s commitments to extend credit at December 31, 2015 were $415 million and $355.0 million at December 31, 2014 . The 2015 balance is primarily composed of $ 200 million of undisbursed commitments for C&I loans. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including both those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis and a non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value, and for estimating the fair value of financial assets and financial liabilities not recorded at fair value, are discussed below. In accordance with accounting guidance, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market. Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2015 and December 31, 2014 . A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Management maximizes the use of observable inputs and attempts to minimize the use of unobservable inputs when determining fair value measurements. The following is a description of both the general and specific valuation methodologies used for certain instruments measured at fair value, as well as the general classification of these instruments pursuant to the valuation hierarchy. Cash and due from banks – The carrying amounts of cash and short-term instruments approximate fair value due to the liquidity of these instruments. Securities Available for Sale – AFS securities are generally valued based upon quotes obtained from an independent third-party pricing service, which uses evaluated pricing applications and model processes. Observable market inputs, such as, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data are considered as part of the evaluation. The inputs are related directly to the security being evaluated, or indirectly to a similarly situated security. Market assumptions and market data are utilized in the valuation models. The Company reviews the market prices provided by the third-party pricing service for reasonableness based on the Company’s understanding of the market place and credit issues related to the securities. The Company has not made any adjustments to the market quotes provided by them and, accordingly, the Company categorized its investment portfolio within Level 2 of the fair value hierarchy. FHLB, FRB, Other Stock – The carrying value approximates the fair value based upon the redemption provisions of the stock. Loans Held for Investment – The fair value of loans, other than loans on nonaccrual status, was estimated by discounting the remaining contractual cash flows using the estimated current rate at which similar loans would be made to borrowers with similar credit risk characteristics and for the same remaining maturities, reduced by deferred net loan origination fees and the allocable portion of the allowance for loan losses. Accordingly, in determining the estimated current rate for discounting purposes, no adjustment has been made for any change in borrowers’ credit risks since the origination of such loans. Rather, the allocable portion of the allowance for loan losses is considered to provide for such changes in estimating fair value. As a result, this fair value is not necessarily the value which would be derived using an exit price. These loans are included within Level 3 of the fair value hierarchy. Loans Held for Sale – The fair values of LHFS are based on quoted market prices, where available, or are determined by discounting estimated cash flows using interest rates approximating the Corporation’s current origination rates for similar loans adjusted to reflect the inherent credit risk. The borrower-specific credit risk is embedded within the quoted market prices or is implied by considering loan performance when selecting comparables. Impaired loans and OREO – Impaired loans and OREO assets are recorded at the fair value less estimated costs to sell at the time of foreclosure. The fair value of impaired loans and OREO assets are generally based on recent real estate appraisals adjusted for estimated selling costs. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Deposit Accounts and Short-term Borrowings — The amounts payable to depositors for demand, savings, and money market accounts, and short-term borrowings are considered to approximate fair value. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities using a discounted cash flow calculation. Interest-bearing deposits and borrowings are included within Level 2 of the fair value hierarchy. Term FHLB Advances and Other Long-term Borrowings— The fair value of long term borrowings is determined using rates currently available for similar borrowings with similar credit risk and for the remaining maturities and are classified as Level 2. 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 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, 2015 and 2014 . At December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 78,417 $ 78,417 $ — $ — $ 78,417 Securities available for sale 280,273 — 280,273 — 280,273 Federal Reserve Bank and FHLB stock, at cost 22,292 — 22,292 — 22,292 Loans held for sale, net 8,565 — 9,507 — 9,507 Loans held for investment, net 2,236,998 — — 2,244,936 2,244,936 Accrued interest receivable 9,315 9,315 — — 9,315 Liabilities: Deposit accounts 2,195,123 1,674,148 521,291 — 2,195,439 FHLB advances 148,000 — 148,036 — 148,036 Other borrowings 48,125 — 49,156 — 49,156 Subordinated debentures 70,310 — 68,675 — 68,675 Accrued interest payable 206 206 — — 206 At December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 110,925 $ 110,925 $ — $ — $ 110,925 Securities available for sale 201,638 — 201,638 — 201,638 Federal Reserve Bank and FHLB stock, at cost 17,067 — 17,067 — 17,067 Loans held for investment, net 1,616,422 — — 2,116,719 2,116,719 Accrued interest receivable 7,131 7,131 — — 7,131 Liabilities: Deposit accounts 1,630,826 1,216,847 519,898 — 1,736,745 FHLB advances 70,000 — 70,025 — 70,025 Other borrowings 46,643 — 48,312 — 48,312 Subordinated debentures 70,310 — 33,456 — 33,456 Accrued interest payable 209 209 — — 209 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 3 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, 2015 , 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 tables present information about the Company’s assets measured at fair value on a recurring basis at the dates indicated: At December 31, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ — $ 130,245 $ — $ 130,245 Collateralized mortgage obligation $ — $ 24,543 $ — $ 24,543 Mortgage-backed securities $ — $ 125,485 $ — $ 125,485 Total securities available for sale: $ — $ 280,273 $ — $ 280,273 At December 31, 2014 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ — $ 89,661 $ — $ 89,661 Collateralized mortgage obligation $ — $ 6,862 $ — $ 6,862 Mortgage-backed securities $ — $ 105,115 $ — $ 105,115 Total securities available for sale: $ — $ 201,638 $ — $ 201,638 The following table provides a summary of the financial instruments the Company measures at fair value on a non-recurring basis at the dates indicated: At December 31, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans $ — $ — $ 1,322 $ 1,322 Other real estate owned — — 1,161 1,161 Total assets $ — $ — $ 2,483 $ 2,483 At December 31, 2014 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans $ — $ — $ 921 $ 921 Other real estate owned — — 1,037 1,037 Total assets $ — $ — $ 1,958 $ 1,958 The following table presents quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis at the dates indicated: December 31, 2015 Range Fair Value Valuation Technique Unobservable Inputs Rate Maturity (years) Unobservable Inputs Collateral dependent impaired loans: Business loans: Commercial and industrial $ 313 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.50 % 6 0-10 Franchise 168 Collateral valuation Management adjustment to reflect current conditions and selling costs 5.70% - 6.70% 7 - 8 0-10 Commercial owner occupied 536 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.75 % 7 0-10 Real estate loans: Commercial non-owner occupied 214 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.75 % 2 - 12 0-15 One-to-four family 70 Collateral valuation Management adjustment to reflect current conditions and selling costs 9.00% - 15.00% 5 - 16 0-10 Land 21 Collateral valuation Management adjustment to reflect current conditions and selling costs 13.00 % 15 0-10 Total collateral dependent impaired loans $ 1,322 Other real estate owned One-to-four family $ — Collateral valuation Management adjustment to reflect current conditions and selling costs — — 0-10 Land 1,161 Collateral valuation Management adjustment to reflect current conditions and selling costs — — 0-10 Total other real estate owned $ 1,161 At December 31, 2014 Range Fair Value Valuation Technique Unobservable Inputs Rate Maturity (years) Unobservable Inputs Collateral dependent impaired loans: Business loans: Commercial owner occupied $ 388 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.75 % 7 0-10 Real estate loans: Commercial non-owner occupied 479 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.00% - 7.50% 2 - 12 0-15 One-to-four family 54 Collateral valuation Management adjustment to reflect current conditions and selling costs 8.00% - 15.00% 5 - 16 0-10 Total collateral dependent impaired loans $ 921 Other real estate owned One-to-four family $ 285 Collateral valuation Management adjustment to reflect current conditions and selling costs — — 0-10 Land 752 Collateral valuation Management adjustment to reflect current conditions and selling costs — — 0-10 Total other real estate owned $ 1,037 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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. Income/(Loss) (numerator) Shares (denominator) Per Share Amount (dollars in thousands, except share data) For the year ended December 31, 2015: Net income applicable to earnings per share $ 25,515 Basic earnings per share: Income available to common stockholders 25,515 21,156,668 $ 1.21 Effect of dilutive securities: Warrants and stock option plans — 332,030 Diluted earnings per share: Income available to common stockholders $ 25,515 21,488,698 $ 1.19 For the year ended December 31, 2014: Net income applicable to earnings per share $ 16,616 Basic earnings per share: Income available to common stockholders 16,616 17,046,660 $ 0.97 Effect of dilutive securities: Warrants and stock option plans — 297,317 Diluted earnings per share: Income available to common stockholders $ 16,616 17,343,977 $ 0.96 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 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Parties | 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. At December 31, 2015 the Company had one related party loan outstanding of $2.4 million , which was new for 2015. At December 31, 2014 there were no outstanding loans to executive officers and directors. At the end of 2015 the Company had related party deposits of $312 million compared to $282 million at the end of 2014 . John J. Carona was appointed to the Board of Directors on March 15, 2013, in connection with the Company's acquisition of First Associations Bank ("FAB"). Mr. Carona is the President and Chief Executive Officer of Associations, Inc. ("Associa"), a Texas corporation that specializes in providing management and related services for homeowners associations located accross the United States. At December 31, 2015 and 2014 , $310 million and $280 million , respectively, of the related party deposits were attributable to Associa. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following is a summary of selected financial data presented below by quarter for the periods indicated: First Quarter Second Quarter Third Quarter Fourth Quarter (dollars in thousands, except per share data) For the year ended December 31, 2015: Interest income $ 26,626 $ 30,071 $ 29,747 $ 31,911 Interest expense 2,952 2,978 3,051 3,074 Provision for estimated loan losses 1,830 1,833 1,062 1,700 Noninterest income 1,470 4,380 4,378 4,217 Noninterest expense 20,469 17,214 17,374 18,539 Income tax provision 1,056 4,601 4,801 4,750 Net income $ 1,789 $ 7,825 $ 7,837 $ 8,065 Earnings per share: Basic $ 0.09 $ 0.36 $ 0.36 $ 0.38 Diluted $ 0.09 $ 0.36 $ 0.36 $ 0.37 For the year ended December 31, 2014: Interest income $ 18,156 $ 19,314 $ 21,333 $ 22,536 Interest expense 1,387 1,533 2,014 2,770 Provision for estimated loan losses 949 1,030 1,284 1,421 Noninterest income 1,918 2,388 4,168 4,903 Noninterest expense 13,541 11,641 13,343 16,468 Income tax provision 1,565 2,855 3,410 2,889 Net income (loss) $ 2,632 $ 4,643 $ 5,450 $ 3,891 Earnings per share: Basic $ 0.15 $ 0.28 $ 0.32 $ 0.23 Diluted $ 0.15 $ 0.27 $ 0.31 $ 0.23 |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Financial Information | 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, 2015 2014 (in thousands) Assets: Cash and cash equivalents $ 3,412 $ 18,724 Deferred income taxes — 3,566 Investment in subsidiaries 359,143 247,669 Other assets 8,502 1,544 Total Assets $ 371,057 $ 271,503 Liabilities: Subordinated debentures $ 70,310 $ 70,310 Accrued expenses and other liabilities 1,767 1,601 Total Liabilities 72,077 71,911 Total Stockholders’ Equity 298,980 199,592 Total Liabilities and Stockholders’ Equity $ 371,057 $ 271,503 PACIFIC PREMIER BANCORP, INC. STATEMENTS OF OPERATIONS (Parent company only) For the Years Ended December 31, 2015 2014 2013 (in thousands) Income: Interest income $ 27 $ 36 $ 20 Noninterest income — 2 3 Total income 27 38 23 Expense: Interest expense 3,937 1,543 307 Noninterest expense 2,831 1,874 2,141 Total expense 6,768 3,417 2,448 Loss before income tax provision (6,741 ) (3,379 ) (2,425 ) Income tax benefit (2,783 ) (1,275 ) (827 ) Net loss (parent only) (3,958 ) (2,104 ) (1,598 ) Equity in net earnings of subsidiaries 29,473 18,720 10,591 Net income $ 25,515 $ 16,616 $ 8,993 PACIFIC PREMIER BANCORP, INC. SUMMARY STATEMENTS OF CASH FLOWS (Parent company only) For the Years Ended December 31, 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES (in thousands) Net income $ 25,515 $ 16,616 $ 8,993 Adjustments to reconcile net income to cash used in operating activities: Share-based compensation expense 1,165 514 943 Equity in undistributed earnings of subsidiaries and dividends from the bank (29,473 ) (16,248 ) (10,591 ) Increase (decrease) in accrued expenses and other liabilities 166 1,560 (39 ) Increase (decrease) in current and deferred taxes 3,566 (286 ) 1,153 Decrease (increase) in other assets (6,893 ) 232 (504 ) Net cash used in operating activities (5,954 ) 2,388 (45 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock, net of issuance cost — — 4,560 Repurchase of common stock (116 ) (5,638 ) (59 ) Proceeds from exercise of options and warrants 758 267 90 Capital contribution to Bank (10,000 ) (40,000 ) (8,700 ) Proceeds from issuance of subordinated debentures — 58,834 — Net cash provided by (used in) financing activities (9,358 ) 13,463 (4,109 ) Net increase (decrease) in cash and cash equivalents (15,312 ) 15,851 (4,154 ) Cash and cash equivalents, beginning of year 18,724 2,873 7,027 Cash and cash equivalents, end of year $ 3,412 $ 18,724 $ 2,873 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Independence Bank Acquisition On January 26, 2015, the Company completed its acquisition of Independence Bank (“IDPK”) in exchange for consideration valued at $79.8 million , which consisted of $6.1 million of cash consideration for IDPK common stockholders, $1.5 million of aggregate cash consideration to the holders of IDPK stock options and warrants, $1.3 million fair market value of warrants assumed and the issuance of 4,480,645 shares of the Corporation’s common stock, which was valued at $70.9 million based on the closing stock price of the Company’s common stock on January 26, 2015 of $15.83 per share. IDPK was a Newport Beach, California based state-chartered bank. The acquisition was an opportunity for the Company to strengthen its competitive position as one of the premier community banks headquartered in Southern California. Additionally, the IDPK acquisition enhanced and connected the Company’s footprint in Southern California. Goodwill in the amount of $27.9 million was recognized in the IDPK 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 IDPK as of January 26, 2015 and the provisional fair value adjustments and amounts recorded by the Company in 2015 under the acquisition method of accounting: IDPK Book Value Fair Value Adjustments Fair Value (dollars in thousands) ASSETS ACQUIRED Cash and cash equivalents $ 10,486 $ — $ 10,486 Investment securities 56,503 (382 ) 56,121 Loans, gross 339,502 (6,609 ) 332,893 Allowance for loan losses (3,301 ) 3,301 — Deferred income taxes 5,266 (472 ) 4,794 Bank owned life insurance 11,276 — 11,276 Core deposit intangible 904 1,999 2,903 Other assets 3,756 780 4,536 Total assets acquired $ 424,392 $ (1,383 ) $ 423,009 LIABILITIES ASSUMED Deposits 335,685 333 336,018 FHLB advances 33,300 — 33,300 Other liabilities 1,916 (120 ) 1,796 Total liabilities assumed 370,901 213 371,114 Excess of assets acquired over liabilities assumed $ 53,491 $ (1,596 ) 51,895 Consideration paid 79,777 Goodwill recognized $ 27,882 Infinity Franchise Holdings Acquisition 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 $81.0 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 further diversified our loan portfolio with commercial and industrial and owner-occupied commercial real estate loans and positively impacted our net interest margin. 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 $17.4 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. Goodwill in the amount of $5.5 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 deductible for income tax purposes. The following table represents the assets acquired and liabilities assumed of IFC as of January 30, 2014 and the provisional fair value adjustments and amounts recorded by the Company in 2014 under the acquisition method of accounting: IFC Book Value Fair Value Adjustments Fair Value (dollars in thousands) ASSETS ACQUIRED Cash and cash equivalents $ 555 $ — $ 555 Loans 78,833 — 78,833 Deferred loan costs 1,082 (1,082 ) — Allowance for loan losses (268 ) 268 — Other assets 776 — 776 Total assets acquired $ 80,978 $ (814 ) $ 80,164 LIABILITIES ASSUMED Bank loan $ 67,617 $ — $ 67,617 Accrued compensation 495 — 495 Other liabilities 214 — 214 Total liabilities assumed 68,326 — 68,326 Excess of assets acquired over liabilities assumed $ 12,652 $ (814 ) 11,838 Consideration paid 17,360 Goodwill recognized $ 5,522 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 Book Value Fair Value Adjustments Fair 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 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 Book Value Fair Value Adjustments Fair Value ASSETS ACQUIRED (dollars in thousands) 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 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. There were no purchased credit impaired loans acquired from FAB, SDTB or IFC. For loans acquired from FAB, SDTB, IFC and IDPK, 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 FAB SDTB IFC IDPK (dollars in thousands) Contractual amounts due $ 32,107 $ 47,251 $ 98,320 $ 453,987 Cash flows not expected to be collected — — — 3,795 Expected cash flows 32,107 47,251 98,320 450,192 Interest component of expected cash flows 5,685 4,529 19,487 117,299 Fair value of acquired loans $ 26,422 $ 42,722 $ 78,833 $ 332,893 In accordance with generally accepted accounting principles there was no carryover of the allowance for loan losses that had been previously recorded by FAB, SDTB, IFC and IDPK The operating results of the Company for the twelve months ending December 31, 2015 include the operating results of FAB, SDTB, IFC, and IDPK 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, SDTB, IFC and IDPK were effective as of January 1, 2015, 2014 and 2013 for the respective year in which each acquisition was closed. The unaudited pro forma information in the following table is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the mergers been completed at the beginning of each respective year. N o assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. Unaudited pro forma net interest and other income, net income and earnings per share presented below: Twelve months Ended December 31, 2015 2014 2013 Net interest and other income $ 122,426 $ 110,727 $ 84,988 Net income 25,862 20,428 11,123 Basic earnings per share $ 1.22 $ 0.95 $ 0.54 Diluted earnings per share $ 1.20 $ 0.94 $ 0.52 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Pacific Premier Bancorp, Inc. and Security California Bancorp On October 2, 2015, the Company announced that it had entered into an agreement to acquire Security California Bancorp (OTCQB: SCAF) ("Security"), the holding company of Security Bank of California, a Riverside, California, based state-chartered bank with six branches located in Riverside County, San Bernardino County and Orange County. The acquisition was completed on January 31, 2016, whereby we acquired $715 million in total assets, $467 million in loans and $635 million in total deposits. Under the terms of the merger agreement, each share of Security common stock was converted into the right to receive 0.9629 shares of Company common stock. The value of the total deal consideration was $120 million , which includes $788,100 of aggregate cash consideration to the holders of Security stock options (based on the excess of $18.75 per share over the average exercise price of $15.58 per share for 248,459 options). |
Description of Business and S33
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
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. |
Description of Business | 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, 2015 , the Company had 16 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), Seal Beach, Tustin, Riverside and Corona. 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 | Basis of Financial Statement Presentation —The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain amounts in the prior periods' financial statements and related footnote disclosures have been reclassified to conform to the current presentation with no impact to previously reported net income or stockholders' equity. Use of Estimates in the Preparation of Financial Statements - 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 relate to the determination of the allowance for loan losses, the fair value of stock-based compensation awards, the fair values of financial instruments and the status of contingencies. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents include cash on hand, due from banks and fed funds sold. Interest bearing deposits with financial institutions represent mostly cash held at the Federal Reserve Bank of San Francisco. At December 31, 2015 , $71.9 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 | 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. |
Securities Available for sale | 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 the estimated average life, which can fluctuate based on the anticipated prepayments on the underlying collateral of the securities. 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 —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, 2015 or 2014 . |
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 other-than-temporary impairments ("OTTI") result in write-downs of the individual securities to their fair value. 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. If it is determined that an OTTI exists and either the Company intends to sell the security or it is likely the security will be required to sell before its anticipated recovery, the amount of the OTTI will be recognized in earnings. If the Company has the intent and ability to retain the security, the Company will determine the amount of the impairment related to credit loss and the amount related to other factors. The portion related to the credit loss will be recognized in earnings and the portion related to other factors will be included in other comprehensive income. The related write-downs are included in operations as realized losses in the category of other-than-temporary impairment loss on investment securities, net. |
Federal Home Loan Bank Stock | Federal Home Loan Bank ("FHLB") Stock — The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans Held for Sale | Loans Held for Sale — Small Business Administration ("SBA") loans that the Company has the intent to sell prior to maturity have been designated as held for sale at origination and are recorded at lower of cost or fair market value. Gains or losses are recognized upon the sale of the loans on a specific identification basis. |
Loan Servicing Asset | Loan Servicing Asset — The Company typically sells the guaranteed portion of SBA loans and retains the unguaranteed portion (“retained interest”). A portion of the premium on sale of SBA loans is recognized as gain on sale of loans at the time of the sale by allocating the carrying amount between the asset sold and the retained interest, based on their relative fair values. The remaining portion of the premium is recorded as a discount on the retained interest and is amortized over the remaining life of the loan as an adjustment to yield. The retained interest, net of any discount, are included in loans held for investment—net of allowance for loan losses in the accompanying consolidated statements of financial condition. Servicing assets are recognized when SBA loans are sold with servicing retained with the income statement effect recorded in gains on sales of SBA loans. Servicing assets are initially recorded at fair value based on the present value of the contractually specified servicing fee, net of servicing costs, over the estimated life of the loan, using a discount rate. The Company’s servicing costs approximates the industry average servicing costs of 40 basis points. The servicing assets are subsequently amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The Company periodically evaluates servicing assets for impairment based upon the fair value of the rights as compared to carrying amount. |
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. 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. 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, for all loan segments, 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. |
Certain Acquired Loans | Certain Acquired Loans —As part of business acquisitions, the Bank acquires certain loans that have shown evidence of credit deterioration since origination. These acquired loans are recorded at the allocated fair value, such that there is no carryover of the seller’s allowance for loan losses. Such acquired loans are accounted for individually. The Bank estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
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. |
Bank Owned Life Insurance | 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. |
Goodwill and Core Deposit Intangible | Goodwill and Core Deposit Intangible— Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate the necessity for such impairment tests to be performed. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Core deposit intangible assets arising from whole bank acquisitions are amortized on a straight-line amortization method over their estimated useful lives, which range from 6 to 10 years. |
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, 2015 and 2014 , 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 Statements of Comprehensive Income. |
Stock-Based Compensation | Stock-Based Compensation —The Company recognizes compensation cost in the income statement for 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). A Black-Scholes model is utilized to estimate the fair value of stock options and the market price of the Company's common stock at the date of the grant is used for restricted stock awards. |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of stock-based compensation awards, the fair values of financial instruments and the status of contingencies are particularly subject to change. |
Recent Accounting Pronouncements | Accounting Standards Adopted in 2015 In June 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-10, Technical Corrections and Improvements, to clarify the Accounting Standards Codification ("ASC"), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements. In January 2014, the FASB issued ASU No. 2014-04, Receivables-Troubled Debt Restructuring By Creditors (Subtopic 310-40): “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The Company adopted the provisions of ASU No. 2014-04 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. In January 2014, the FASB issued ASU No. 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): "Accounting for Investments in Qualified Affordable Housing Projects." This Update permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. As the Company accounts for such investments using the cost method, the update had no impact on the Company’s Consolidated Financial Statements. In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860):"Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." This Update aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The Update requires a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The Update also requires expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The Update is effective for interim or annual period beginning after December 15, 2014. All of the Company's repurchase agreements are typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. The Company adopted the provisions of ASU No. 2014-11 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. In August 2014, the FASB issued ASU No. 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): “Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure”. This Update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this Update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) At the time of fore0closure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. This Update is effective for interim and annual periods beginning after December 15, 2014 for public business entities and after December 15, 2015 for non public business entities. The Company adopted the provisions of ASU No. 2014-14 effective January 1, 2015. The adoption had no impact on the Company’s Consolidated Financial Statements. Recent Accounting Guidance Not Yet Effective On February 25, 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842). The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. This Update is generally effective for public business entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effects of ASU 2016-02 on its financial statements and disclosures. On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . Changes made to the current measurement model primarily affect the accounting for equity securities with readily determinable fair values, where changes in fair value will impact earnings instead of other comprehensive income. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. The Update also changes the presentation and disclosure requirements for financial instruments including a requirement that public business entities use exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. This Update is generally effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the effects of ASU 2016-01 on its financial statements and disclosures. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606). As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Update modifies the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. The Company does not expect these amendments to have a material effect on its financial statements. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The Update changes the balance sheet presentation for debt issuance costs. Under the new guidance, debt issuance costs should be reported as a deduction from debt liabilities rather than as a deferred charge classified as an asset. The Update is effective for us in first quarter 2016 with retrospective application. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. In August 2014, the FASB issued guidance within ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40):Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . This Update provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern. The amendments require management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. This Update is effective for interim and annual periods ending after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Regulatory Capital Requiremen34
Regulatory Capital Requirements and Other Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of Company's and Bank's actual capital amounts and ratios | As defined in applicable regulations and set forth in the table below, at December 31, 2015 , the Company and the Bank continue to exceed the “well capitalized” standards: Actual Minimum Required for Capital Adequacy Purposes Required to be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2015 Tier 1 leverage ratio (1) Bank $ 304,442 11.41 % $ 106,684 4.00 % $ 133,354 5.00 % Consolidated 254,280 9.52 % 106,886 4.00 % N/A N/A Common equity tier 1 risk-based capital ratio (1) Bank 304,442 12.35 % 110,954 4.50 % 160,267 6.50 % Consolidated 245,224 9.91 % 111,336 4.50 % N/A N/A Tier 1 risk-based capital ratio (1) Bank 304,442 12.35 % 147,938 6.00 % 197,251 8.00 % Consolidated 254,280 10.28 % 148,448 6.00 % N/A N/A Total risk-based capital ratio (1) Bank 322,361 13.07 % 197,251 8.00 % 246,564 10.00 % Consolidated 332,200 13.43 % 197,931 8.00 % N/A N/A At December 31, 2014 Tier 1 leverage ratio (1) Bank $ 221,523 11.29 % $ 78,466 4.00 % $ 98,083 5.00 % Consolidated 179,881 9.18 % 78,401 4.00 % N/A N/A Tier 1 risk-based capital ratio (1) Bank 221,523 12.72 % 69,650 4.00 % 104,475 6.00 % Consolidated 179,881 10.30 % 69,855 4.00 % N/A N/A Total risk-based capital ratio (1) Bank 234,120 13.45 % 139,300 8.00 % 174,126 10.00 % Consolidated 252,477 14.46 % 139,709 8.00 % N/A N/A (1) Beginning with March 31, 2015, the ratio is calculated under Basel III. For prior periods, the ratio was calculated under Basel I or not applicable. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair value of securities | The amortized cost and estimated fair value of securities were as follows: December 31, 2015 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (in thousands) Available-for-sale: Municipal bonds $ 128,546 $ 1,796 $ (97 ) $ 130,245 Collateralized mortgage obligation 24,722 4 (183 ) 24,543 Mortgage-backed securities 126,443 153 (1,111 ) 125,485 Total available-for-sale 279,711 1,953 (1,391 ) 280,273 Held-to-maturity: Mortgage-backed securities 8,400 — (70 ) 8,330 Other 1,242 — — 1,242 Total held-to-maturity 9,642 — (70 ) 9,572 Total securities $ 289,353 $ 1,953 $ (1,461 ) $ 289,845 December 31, 2014 Amortized Unrealized Unrealized Estimated Cost Gain Loss Fair Value (in thousands) Available-for-sale: Municipal bonds $ 88,599 $ 1,235 $ (173 ) $ 89,661 Collateralized mortgage obligation $ 6,831 $ 31 $ — $ 6,862 Mortgage-backed securities 105,328 401 (614 ) 105,115 Total available-for-sale 200,758 1,667 (787 ) 201,638 |
Schedule of number, fair value and gross unrealized holding losses of the Company's investment securities by investment category and length of time that the securities have been in a continuous loss position | The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous loss position. December 31, 2015 Less than 12 months 12 months or Longer Total Number Fair Value Gross Unrealized Holding Losses Number Fair Value Gross Unrealized Holding Losses Number Fair Value Gross Unrealized Holding Losses (dollars in thousands) Available-for-sale: Municipal bonds 32 $ 15,516 $ (61 ) 6 $ 3,349 $ (36 ) 38 $ 18,865 $ (97 ) Collateralized mortgage obligation 5 22,771 (183 ) — — — 5 22,771 (183 ) Mortgage-backed securities 34 83,488 (679 ) 3 12,935 (432 ) 37 96,423 (1,111 ) Total available-for-sale 71 $ 121,775 $ (923 ) 9 $ 16,284 $ (468 ) 80 $ 138,059 $ (1,391 ) Held-to-maturity: Mortgage-backed securities 1 $ 8,330 $ (70 ) — $ — $ — 1 $ 8,330 $ (70 ) Total held-to-maturity 1 $ 8,330 $ (70 ) — $ — $ — 1 $ 8,330 $ (70 ) Total securities 72 $ 130,105 $ (993 ) 9 $ 16,284 $ (468 ) 81 $ 146,389 $ (1,461 ) December 31, 2014 Less than 12 months 12 months or Longer Total Number Fair Gross Number Fair Gross Number Fair Gross (dollars in thousands) Available-for-sale: Municipal bonds 35 $ 18,129 $ (117 ) 16 $ 6,510 $ (56 ) 51 $ 24,639 $ (173 ) Mortgage-backed securities 7 24,353 (105 ) 4 18,842 (509 ) 11 43,195 (614 ) Total available-for-sale 42 $ 42,482 $ (222 ) 20 $ 25,352 $ (565 ) 62 $ 67,834 $ (787 ) |
Schedule of amortized cost and estimated fair value of investment securities available for sale by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale at December 31, 2015 , by contractual maturity are shown in the table below. One Year or Less More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Available-for-sale: Municipal bonds $ 1,067 $ 1,068 $ 26,998 $ 27,134 $ 43,968 $ 44,695 $ 56,513 $ 57,348 $ 128,546 $ 130,245 Collateralized mortgage obligation — — — — — — 24,722 24,543 24,722 24,543 Mortgage-backed securities — — — — 27,662 27,612 98,781 97,873 126,443 125,485 Total available-for-sale 1,067 1,068 26,998 27,134 71,630 72,307 180,016 179,764 279,711 280,273 Held-to-maturity: Mortgage-backed securities — — — — — — 8,400 8,330 8,400 8,330 Other — — — — — — 1,242 1,242 1,242 1,242 Total held-to-maturity — — — — — — 9,642 9,572 9,642 9,572 Total securities $ 1,067 $ 1,068 $ 26,998 $ 27,134 $ 71,630 $ 72,307 $ 189,658 $ 189,336 $ 289,353 $ 289,845 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of components of loans held for investment | The following table presents the composition of the loan portfolio as of the dates indicated: For the Years Ended December 31, 2015 2014 (in thousands) Business loans: Commercial and industrial $ 309,741 $ 228,979 Franchise 328,925 199,228 Commercial owner occupied 294,726 210,995 SBA 62,256 28,404 Warehouse facilities 143,200 113,798 Real estate loans: Commercial non-owner occupied 421,583 359,213 Multi-family 429,003 262,965 One-to-four family 80,050 122,795 Construction 169,748 89,682 Land 18,340 9,088 Other loans 5,111 3,298 Total gross loans 2,262,683 1,628,445 Less loans held for sale, net 8,565 — Total gross loans held for investment 2,254,118 1,628,445 Plus (less): Deferred loan origination costs and premiums, net 197 177 Allowance for loan losses (17,317 ) (12,200 ) Loans held for investment, net $ 2,236,998 $ 1,616,422 |
Summary of Company's investment in purchased credit impaired loans | The carrying amount of those loans at December 31, 2015 , and 2014 was as follows: For the Years Ended December 31, 2015 2014 (in thousands) Business loans: Commercial and industrial $ 289 $ 94 Commercial owner occupied 884 546 Real estate loans: Commercial non-owner occupied 2,088 956 One-to-four family 85 5 Total purchase credit impaired $ 3,346 $ 1,601 |
Summary of accretable yield on purchased credit impaired | The following table summarizes the accretable yield on the purchased credit impaired for the years ended December 31, 2015 , 2014 and 2013 : For the Years Ended December 31, 2015 2014 2013 (in thousands) Balance at the beginning of period $ 1,403 $ 1,676 $ 2,276 Accretable yield at acquisition 602 — — Accretion (385 ) (255 ) (557 ) Disposals and other (249 ) (18 ) (648 ) Change in accretable yield 1,355 — 605 Balance at the end of period $ 2,726 $ 1,403 $ 1,676 |
Summary of Company's investment in 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 Investment Unpaid Principal Balance With Specific Allowance Without Specific Allowance Specific Allowance for Impaired Loans Average Recorded Investment Interest Income Recognized (in thousands) December 31, 2015 Business loans: Commercial and industrial $ 313 $ 578 $ — $ 313 $ — $ 90 $ 29 Franchise 1,630 2,394 1,461 169 731 1,386 3 Commercial owner occupied 536 883 — 536 — 415 67 Real estate loans: Commercial non-owner occupied 214 329 — 214 — 430 19 One-to-four family 70 98 — 70 — 204 5 Land 21 37 — 21 — 13 — Totals $ 2,784 $ 4,319 $ 1,461 $ 1,323 $ 731 $ 2,538 $ 123 December 31, 2014 Business loans: Commercial and industrial $ — $ — $ — $ — $ — $ 11 $ — Commercial owner occupied 388 440 — 388 — 514 46 SBA — — — — — 5 — Real estate loans: Commercial non-owner occupied 848 1,217 — 848 — 908 85 Multi-family — — — — — — — One-to-four family 236 256 — 236 — 440 17 Totals $ 1,472 $ 1,913 $ — $ 1,472 $ — $ 1,878 $ 148 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 |
Summary of loan portfolio by the Company's internal risk grading system | The following tables stratify the loan portfolio by the Company’s internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio as of the periods indicated: Credit Risk Grades Pass Special Mention Substandard Doubtful Total Gross Loans December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 306,513 $ 73 $ 3,155 $ — $ 309,741 Franchise 327,295 — 169 1,461 328,925 Commercial owner occupied 286,270 627 7,829 — 294,726 SBA 62,256 — — — 62,256 Warehouse facilities 143,200 — — — 143,200 Real estate loans: Commercial non-owner occupied 418,917 — 2,666 — 421,583 Multi-family 425,616 — 3,387 — 429,003 One-to-four family 78,997 — 1,053 — 80,050 Construction 169,748 — — — 169,748 Land 18,319 — 21 — 18,340 Other loans 5,111 — — — 5,111 Totals $ 2,242,242 $ 700 $ 18,280 $ 1,461 $ 2,262,683 Pass Special Mention Substandard Doubtful Total Gross Loans December 31, 2014 (in thousands) Business loans: Commercial and industrial $ 227,151 $ — $ 1,828 $ — $ 228,979 Franchise 199,228 — — — 199,228 Commercial owner occupied 202,390 — 8,605 — 210,995 SBA 28,132 272 — — 28,404 Warehouse facilities 113,798 — — — 113,798 Real estate loans: Commercial non-owner occupied 355,274 — 3,939 — 359,213 Multi-family 261,956 501 508 — 262,965 One-to-four family 122,146 — 649 — 122,795 Construction 89,682 — — — 89,682 Land 9,088 — — — 9,088 Other loans 3,298 — — — 3,298 Totals $ 1,612,143 $ 773 $ 15,529 $ — $ 1,628,445 |
Schedule of credit quality of the loan portfolio | Days Past Due Current 30-59 60-89 90+ Total Gross Loans Non-accruing December 31, 2015 (in thousands) Business loans: Commercial and industrial $ 309,464 $ 20 $ — $ 257 $ 309,741 $ 463 Franchise 327,295 — — 1,630 328,925 1,630 Commercial owner occupied 294,371 — 355 — 294,726 536 SBA 62,256 — — — 62,256 — Warehouse facilities 143,200 — — — 143,200 — Real estate loans: Commercial non-owner occupied 421,369 214 — — 421,583 1,164 Multi-family 429,003 — — — 429,003 — One-to-four family 79,915 89 — 46 80,050 155 Construction 169,748 — — — 169,748 — Land 18,319 — — 21 18,340 21 Other loans 5,111 — — — 5,111 1 Totals $ 2,260,051 $ 323 $ 355 $ 1,954 $ 2,262,683 $ 3,970 Days Past Due Current 30-59 60-89 90+ Total Gross Loans Non-accruing December 31, 2014 Business loans: Commercial and industrial $ 228,955 $ — $ 24 $ — $ 228,979 $ — Franchise 199,228 — — — 199,228 — Commercial owner occupied 210,995 — — — 210,995 514 SBA 28,404 — — — 28,404 — Warehouse facilities 113,798 — — — 113,798 — Real estate loans: Commercial non-owner occupied 359,213 — — — 359,213 848 Multi-family 262,965 — — — 262,965 — One-to-four family 122,722 19 — 54 122,795 82 Construction 89,682 — — — 89,682 — Land 9,088 — — — 9,088 — Other loans 3,297 1 — — 3,298 — Totals $ 1,628,347 $ 20 $ 24 $ 54 $ 1,628,445 $ 1,444 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Provision for Loan and Lease Losses [Abstract] | |
Summary of allocation of the allowance as well as the activity in the allowance attributed to various segments in the loan portfolio | The following tables summarize the allocation of the 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 and Industrial Franchise Commercial Owner Occupied SBA Warehouse Facilities Commercial Non-owner Occupied Multi-family One-to-four Family Construction Land Other Loans Total (dollars in thousands) Balance, December 31, 2014 $ 2,646 $ 1,554 $ 1,757 $ 568 $ 546 $ 2,007 $ 1,060 $ 842 $ 1,088 $ 108 $ 24 $ 12,200 Charge-offs (484 ) (764 ) — — — (116 ) — (16 ) — — — (1,380 ) Recoveries 47 — — 8 — 3 — 13 — — 1 72 Provisions for (reduction in) loan losses 1,240 2,334 113 924 213 154 523 (141 ) 942 125 (2 ) 6,425 Balance, December 31, 2015 $ 3,449 $ 3,124 $ 1,870 $ 1,500 $ 759 $ 2,048 $ 1,583 $ 698 $ 2,030 $ 233 $ 23 $ 17,317 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ 731 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 731 General portfolio allocation 3,449 2,393 1,870 1,500 759 2,048 1,583 698 2,030 233 23 16,586 Loans individually evaluated for impairment 313 1,630 536 — — 214 — 70 — 21 — 2,784 Specific reserves to total loans individually evaluated for impairment — % 30.53 % — % — % — % — % — % — % — % — % — % 16.93 % Loans collectively evaluated for impairment $ 309,428 $ 327,295 $ 294,190 $ 62,256 $ 143,200 $ 421,369 $ 429,003 $ 79,980 $ 169,748 $ 18,319 $ 5,111 $ 2,259,899 General reserves to total loans collectively evaluated for impairment 1.11 % 0.73 % 0.64 % 2.41 % 0.53 % 0.49 % 0.37 % 0.87 % 1.20 % 1.27 % 0.45 % 0.73 % Total gross loans $ 309,741 $ 328,925 $ 294,726 $ 62,256 $ 143,200 $ 421,583 $ 429,003 $ 80,050 $ 169,748 $ 18,340 $ 5,111 $ 2,262,683 Total allowance to gross loans 1.11 % 0.95 % 0.63 % 2.41 % 0.53 % 0.49 % 0.37 % 0.87 % 1.20 % 1.27 % 0.45 % 0.77 % Commercial and Industrial Franchise Commercial Owner Occupied SBA Warehouse Facilities Commercial Non-owner Occupied Multi-family One-to-four Family Construction Land Other Loans Total (dollars in thousands) Balance, December 31, 2013 $ 1,968 $ — $ 1,818 $ 151 $ 392 $ 1,658 $ 817 $ 1,099 $ 136 $ 127 $ 34 $ 8,200 Charge-offs (223 ) — — — — (365 ) — (195 ) — — — (783 ) Recoveries 42 — — 4 — — — 34 — — 19 99 Provisions for (reduction in) loan losses 859 1,554 (61 ) 413 154 714 243 (96 ) 952 (19 ) (29 ) 4,684 Balance, December 31, 2014 $ 2,646 $ 1,554 $ 1,757 $ 568 $ 546 $ 2,007 $ 1,060 $ 842 $ 1,088 $ 108 $ 24 $ 12,200 Amount of allowance attributed to: Specifically evaluated impaired loans $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — General portfolio allocation $ 2,646 $ 1,554 $ 1,757 $ 568 $ 546 $ 2,007 $ 1,060 $ 842 $ 1,088 $ 108 $ 24 $ 12,200 Loans individually evaluated for impairment $ — $ — $ 388 $ — $ — $ 848 $ — $ 236 $ — $ — $ — $ 1,472 Specific reserves to total loans individually evaluated for impairment — % — % — % — % — % — % — % — % — % — % — % — % Loans collectively evaluated for impairment $ 228,979 $ 199,228 $ 210,607 $ 28,404 $ 113,798 $ 358,365 $ 262,965 $ 122,559 $ 89,682 $ 9,088 $ 3,298 $ 1,626,973 General reserves to total loans collectively evaluated for impairment 1.16 % 0.78 % 0.83 % 2.00 % 0.48 % 0.56 % 0.40 % 0.69 % 1.21 % 1.19 % 0.73 % 0.75 % Total gross loans $ 228,979 $ 199,228 $ 210,995 $ 28,404 $ 113,798 $ 359,213 $ 262,965 $ 122,795 $ 89,682 $ 9,088 $ 3,298 $ 1,628,445 Total allowance to gross loans 1.16 % 0.78 % 0.83 % 2.00 % 0.48 % 0.56 % 0.40 % 0.69 % 1.21 % 1.19 % 0.73 % 0.75 % 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 Commercial and Industrial Franchise Commercial Owner Occupied SBA Warehouse Facilities Commercial Non-owner Occupied Multi-family One-to-four Family Construction Land Other Loans Total (dollars in thousands) 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 — % — % — % — % — % 0.10 % — % 15.23 % — % — % — % 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 % 0.50 % 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 % 0.50 % 0.35 % 0.76 % 1.04 % 1.67 % 0.89 % 0.66 % |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate [Abstract] | |
Summary of the activity in the other real estate owned | The following summarizes the activity in the other real estate owned for the years ended December 31: 2015 2014 2013 (in thousands) Balance, beginning of year $ 1,037 $ 1,186 $ 2,258 Additions / foreclosures 450 645 996 Sales (285 ) (794 ) (1,488 ) Loss on sale — — (226 ) Write downs (41 ) — (354 ) Balance, end of year $ 1,161 $ 1,037 $ 1,186 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of premises and equipment | Premises and equipment consisted of the following at December 31: 2015 2014 (in thousands) Land $ 200 $ 200 Premises 3,528 3,340 Leasehold improvements 5,901 5,491 Furniture, fixtures and equipment 11,263 9,372 Automobiles 187 188 Subtotal 21,079 18,591 Less: accumulated depreciation 11,831 9,426 Total $ 9,248 $ 9,165 |
Goodwill and Core Deposit Int40
Goodwill and Core Deposit Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in the carrying value of goodwill for the periods indicated: 2015 2014 (in thousands) Balance, beginning of year $ 22,950 $ 17,428 Goodwill acquired during the year 27,882 5,522 Impairment losses — — Balance, end of year $ 50,832 $ 22,950 Accumulated impairment losses at end of year — — |
Schedule of Finite-Lived Intangible Assets | The following table presents the changes in the gross amounts of core deposit intangibles and the related accumulated amortization for the dates and periods indicated: 2015 2014 2013 (in thousands) Gross amount of CDI: Balance, beginning of year $ 7,876 $ 7,876 $ 3,110 Additions due to acquisitions 2,906 — 4,766 Balance, end of year 10,782 7,876 7,876 Accumulated Amortization Balance, beginning of year (2,262 ) (1,248 ) (484 ) Amortization (1,350 ) (1,014 ) (764 ) Balance, end of year (3,612 ) (2,262 ) (1,248 ) Net CDI, end of year $ 7,170 $ 5,614 $ 6,628 |
Qualified Affordable Housing 41
Qualified Affordable Housing Project Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in LIHTC Projects | The following table presents the Company's original investment in the LIHTC projects, the current recorded investment balance, and the unfunded liability balance of each investment at December 31, 2015 and 2014 . In addition, the table reflects the tax credits and tax benefits recorded by the Company during 2015 and 2014 ; the amortization of the investment and the net impact to the Company's income tax provision for 2015 and 2014 . Qualified Affordable Housing Projects at Original Investment Value Current Recorded Investment Unfunded Liability Obligation Tax Credits and Tax Deductions (1) Amortization of Investments (2) Net Income Tax Benefit WNC Institutional Tax Credit $ 5,000 $ 3,750 $ 316 $ 917 $ 500 $ (643 ) WNC Institutional Tax Credit 5,000 4,250 2,111 819 500 (531 ) Total - Investments in $ 10,000 $ 8,000 $ 2,427 $ 1,736 $ 1,000 $ (1,174 ) Qualified Affordable Housing Projects at Original Investment Value Current Recorded Investment Unfunded Liability Obligation Tax Credits and Tax Deductions (1) Amortization of Investments (2) Net Income Tax Benefit WNC Institutional Tax Credit $ 5,000 $ 4,250 $ 774 $ 887 $ 500 $ (626 ) WNC Institutional Tax Credit 5,000 4,750 3,266 388 250 (268 ) Total - Investments in $ 10,000 $ 9,000 $ 4,040 $ 1,275 $ 750 $ (894 ) (1) The amounts reflected in this column represent both the tax credits, as well as the tax benefits generated by the Qualified Affordable Housing Projects operating loss for the year, which are included in the calculation of income tax expense. (2) This amount represents the amortization of the investment cost of the LIHTC, included in non-interest expense. |
Deposit Accounts (Tables)
Deposit Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of components of deposit accounts and weighted average interest rates | Deposit accounts and weighted average interest rates consisted of the following at December 31: 2015 Weighted 2014 Weighted (dollars in thousands) Transaction accounts Noninterest-bearing checking $ 711,771 — % $ 456,754 — % Interest-bearing checking 134,999 0.11 % 131,635 0.11 % Money market 743,871 0.35 % 526,256 0.32 % Savings 83,507 0.15 % 74,508 0.14 % Total transaction accounts 1,674,148 0.17 % 1,189,153 0.16 % Certificates of deposit accounts Less than 100,000 126,704 0.79 % 123,862 0.91 % $100,000 through $250,000 166,397 0.91 % 163,819 1.00 % Greater than $250,000 227,874 0.72 % 153,992 0.76 % Total certificates of deposit accounts 520,975 0.80 % 441,673 0.89 % Total deposits $ 2,195,123 0.32 % $ 1,630,826 0.36 % |
Schedule of aggregate annual maturities of certificates of deposit accounts | The aggregate annual maturities of certificates of deposit accounts at December 31, 2015 are as follows: 2015 Balance Weighted Average Interest Rate (dollars in thousands) Within 3 months $ 79,798 0.55 % 4 to 6 months 131,699 0.81 % 7 to 12 months 188,046 0.78 % 13 to 24 months 108,194 0.98 % 25 to 36 months 8,365 1.09 % 37 to 60 months 4,237 1.10 % Over 60 months 636 0.97 % Total $ 520,975 0.80 % |
Schedule of interest expense on deposit accounts | Interest expense on deposit accounts for the years ended December 31 is summarized as follows: 2015 2014 2013 (dollars in thousands) Checking accounts $ 165 $ 161 $ 110 Savings 141 110 103 Money market accounts 2,426 1,443 1,043 Certificates of deposit accounts 3,898 3,323 2,809 Total $ 6,630 $ 5,037 $ 4,065 |
Federal Home Loan Bank Advanc43
Federal Home Loan Bank Advances and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Federal Home Loan Bank Advances [Abstract] | |
Summary of activities in advances from the FHLB | The following table summarizes activities in advances from the FHLB for the periods indicated: Year Ended December 31, 2015 2014 (dollars in thousands) Average balance outstanding $ 139,542 $ 70,296 Maximum amount outstanding at any month-end during the year 340,000 210,000 Balance outstanding at end of year 148,000 70,000 Weighted average interest rate during the year 0.39 % 0.26 % |
Summary of activities in other borrowings | The following summarizes activities in other borrowings: Year Ended December 31, 2015 2014 (dollars in thousands) Average balance outstanding $ 48,490 $ 47,398 Maximum amount outstanding at any month-end during the year 49,925 49,712 Balance outstanding at end of year 48,125 46,643 Weighted average interest rate during the year 1.95 % 2.00 % |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of summarizes activities for our subordinated debentures | The following table summarizes activities for our subordinated debentures for the periods indicated: Year Ended December 31, 2015 2014 (dollars in thousands) Average balance outstanding $ 70,310 $ 30,858 Maximum amount outstanding at any month-end during the year 70,310 70,310 Balance outstanding at end of year 70,310 70,310 Weighted average interest rate during the year 5.36 % 5.00 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income taxes | Income taxes for the years ended December 31 consisted of the following: 2015 2014 2013 (in thousands) Current income tax provision: Federal $ 12,460 $ 9,628 $ 7,008 State 4,144 3,466 2,329 Total current income tax provision 16,604 13,094 9,337 Deferred income tax provision (benefit): Federal (887 ) (1,789 ) (3,129 ) State (508 ) (586 ) (621 ) Total deferred income tax provision (benefit) (1,395 ) (2,375 ) (3,750 ) Total income tax provision $ 15,209 $ 10,719 $ 5,587 |
Schedule of reconciliation from statutory federal income taxes to the Company's effective income taxes | A reconciliation from statutory federal income taxes to the Company's effective income taxes for the years ended December 31 is as follows: 2015 2014 2013 (in thousands) Statutory federal income tax provision $ 14,253 $ 9,459 $ 5,103 California franchise tax, net of federal income tax effect 2,886 1,926 1,027 Cash surrender life insurance (483 ) (324 ) (277 ) Tax exempt interest (742 ) (614 ) (718 ) Merger costs 447 410 164 LIHTC investments (871 ) (728 ) (237 ) Other (281 ) 590 525 Total income tax provision $ 15,209 $ 10,719 $ 5,587 |
Schedule of deferred tax assets (liabilities) comprised of the temporary differences between the financial statement carrying amounts and the tax basis of assets | 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: 2015 2014 2013 (in thousands) Deferred tax assets: Accrued expenses $ 1,717 $ 1,802 $ 891 Net operating loss 5,192 2,703 3,353 Allowance for loan losses, net of bad debt charge-offs 6,252 5,158 3,336 Deferred compensation 2,547 1,750 1,896 State taxes 1,451 1,238 858 Depreciation 651 321 (216 ) Other-than-temporary impairment — — 684 Stock based compensation 639 313 273 Total deferred tax assets 18,449 13,285 11,075 Deferred tax liabilities: Deferred FDIC gain (1,656 ) (1,731 ) (1,944 ) Core deposit intangibles (2,266 ) (1,518 ) (1,813 ) Unrealized (gain) loss on available for sale securities (231 ) (362 ) 2,160 Other (2,785 ) (291 ) (1,001 ) Total deferred tax liabilities (6,938 ) (3,902 ) (2,598 ) Net deferred tax asset $ 11,511 $ 9,383 $ 8,477 |
Commitments, Contingencies an46
Commitments, Contingencies and Concentrations of Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum annual lease payments, excluding any renewals and extensions, property taxes, and other operating expenses, due under the agreements | 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, Amount (in thousands) 2016 $ 3,658 2017 3,095 2018 2,557 2019 2,351 2020 711 Thereafter 400 Total $ 12,772 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of the activity in the Option Plan | Below is a summary of the stock option activity in the Plans for the year ended December 31, 2015 : 2015 Number of Stock Options Outstanding Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic value (in years) (in thousands) Outstanding at January 1, 2015 925,084 $ 10.41 Granted 249,000 15.16 Exercised (8,066 ) 8.70 Forfeited and Expired (106,932 ) 12.31 Outstanding at December 31, 2015 1,059,086 $ 11.35 6.3 $ 10,489 Vested and exercisable at December 31, 2015 635,069 $ 9.09 4.9 $ 7,719 |
Schedule of assumptions used for valuing options granted with the Black-Scholes model | Options granted under the Option Plans during 2015 , 2014 and 2013 were valued using the Black-Scholes model with the following average assumptions: Year Ended December 31, 2015 2014 2013 Expected volatility 29.47% 16.2% - 18.5% 22.2% - 25.82% Expected term 6.00 Years 6.00 Years 10.00 Years Expected dividends None None None Risk free rate 1.39% 1.81% - 2.10% 1.78% - 2.67% Weighted-average grant date fair value $4.73 $3.28 - $3.67 $3.93 - $5.87 |
Schedule of Other Share-based Compensation, Activity | Below is a summary of the restricted stock activity in the Plans for the years ended December 31, 2015 : 2015 Shares Weighted Average Grant-Date Fair Value per share Unvested at the beginning of the year — $ — Granted 60,000 15.46 Vested — — Unvested at the end of the year 60,000 $ 15.46 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value of financial instruments | The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2015 and 2014 . At December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 78,417 $ 78,417 $ — $ — $ 78,417 Securities available for sale 280,273 — 280,273 — 280,273 Federal Reserve Bank and FHLB stock, at cost 22,292 — 22,292 — 22,292 Loans held for sale, net 8,565 — 9,507 — 9,507 Loans held for investment, net 2,236,998 — — 2,244,936 2,244,936 Accrued interest receivable 9,315 9,315 — — 9,315 Liabilities: Deposit accounts 2,195,123 1,674,148 521,291 — 2,195,439 FHLB advances 148,000 — 148,036 — 148,036 Other borrowings 48,125 — 49,156 — 49,156 Subordinated debentures 70,310 — 68,675 — 68,675 Accrued interest payable 206 206 — — 206 At December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 110,925 $ 110,925 $ — $ — $ 110,925 Securities available for sale 201,638 — 201,638 — 201,638 Federal Reserve Bank and FHLB stock, at cost 17,067 — 17,067 — 17,067 Loans held for investment, net 1,616,422 — — 2,116,719 2,116,719 Accrued interest receivable 7,131 7,131 — — 7,131 Liabilities: Deposit accounts 1,630,826 1,216,847 519,898 — 1,736,745 FHLB advances 70,000 — 70,025 — 70,025 Other borrowings 46,643 — 48,312 — 48,312 Subordinated debentures 70,310 — 33,456 — 33,456 Accrued interest payable 209 209 — — 209 |
Schedule of Off-balance sheet commitments and standby letters of credit | The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2015 and 2014 . At December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 78,417 $ 78,417 $ — $ — $ 78,417 Securities available for sale 280,273 — 280,273 — 280,273 Federal Reserve Bank and FHLB stock, at cost 22,292 — 22,292 — 22,292 Loans held for sale, net 8,565 — 9,507 — 9,507 Loans held for investment, net 2,236,998 — — 2,244,936 2,244,936 Accrued interest receivable 9,315 9,315 — — 9,315 Liabilities: Deposit accounts 2,195,123 1,674,148 521,291 — 2,195,439 FHLB advances 148,000 — 148,036 — 148,036 Other borrowings 48,125 — 49,156 — 49,156 Subordinated debentures 70,310 — 68,675 — 68,675 Accrued interest payable 206 206 — — 206 At December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value (in thousands) Assets: Cash and cash equivalents $ 110,925 $ 110,925 $ — $ — $ 110,925 Securities available for sale 201,638 — 201,638 — 201,638 Federal Reserve Bank and FHLB stock, at cost 17,067 — 17,067 — 17,067 Loans held for investment, net 1,616,422 — — 2,116,719 2,116,719 Accrued interest receivable 7,131 7,131 — — 7,131 Liabilities: Deposit accounts 1,630,826 1,216,847 519,898 — 1,736,745 FHLB advances 70,000 — 70,025 — 70,025 Other borrowings 46,643 — 48,312 — 48,312 Subordinated debentures 70,310 — 33,456 — 33,456 Accrued interest payable 209 209 — — 209 |
Schedule of Company's assets measured at fair value on a recurring basis | The following fair value hierarchy tables present information about the Company’s assets measured at fair value on a recurring basis at the dates indicated: At December 31, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ — $ 130,245 $ — $ 130,245 Collateralized mortgage obligation $ — $ 24,543 $ — $ 24,543 Mortgage-backed securities $ — $ 125,485 $ — $ 125,485 Total securities available for sale: $ — $ 280,273 $ — $ 280,273 At December 31, 2014 Fair Value Measurement Using Level 1 Level 2 Level 3 Securities at Fair Value (in thousands) Investment securities available for sale: Municipal bonds $ — $ 89,661 $ — $ 89,661 Collateralized mortgage obligation $ — $ 6,862 $ — $ 6,862 Mortgage-backed securities $ — $ 105,115 $ — $ 105,115 Total securities available for sale: $ — $ 201,638 $ — $ 201,638 |
Schedule of Company's assets measured at fair value on a non-recurring basis | The following table provides a summary of the financial instruments the Company measures at fair value on a non-recurring basis at the dates indicated: At December 31, 2015 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans $ — $ — $ 1,322 $ 1,322 Other real estate owned — — 1,161 1,161 Total assets $ — $ — $ 2,483 $ 2,483 At December 31, 2014 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets at Fair Value (in thousands) Assets Collateral dependent impaired loans $ — $ — $ 921 $ 921 Other real estate owned — — 1,037 1,037 Total assets $ — $ — $ 1,958 $ 1,958 |
Schedule of quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis | The following table presents quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis at the dates indicated: December 31, 2015 Range Fair Value Valuation Technique Unobservable Inputs Rate Maturity (years) Unobservable Inputs Collateral dependent impaired loans: Business loans: Commercial and industrial $ 313 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.50 % 6 0-10 Franchise 168 Collateral valuation Management adjustment to reflect current conditions and selling costs 5.70% - 6.70% 7 - 8 0-10 Commercial owner occupied 536 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.75 % 7 0-10 Real estate loans: Commercial non-owner occupied 214 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.75 % 2 - 12 0-15 One-to-four family 70 Collateral valuation Management adjustment to reflect current conditions and selling costs 9.00% - 15.00% 5 - 16 0-10 Land 21 Collateral valuation Management adjustment to reflect current conditions and selling costs 13.00 % 15 0-10 Total collateral dependent impaired loans $ 1,322 Other real estate owned One-to-four family $ — Collateral valuation Management adjustment to reflect current conditions and selling costs — — 0-10 Land 1,161 Collateral valuation Management adjustment to reflect current conditions and selling costs — — 0-10 Total other real estate owned $ 1,161 At December 31, 2014 Range Fair Value Valuation Technique Unobservable Inputs Rate Maturity (years) Unobservable Inputs Collateral dependent impaired loans: Business loans: Commercial owner occupied $ 388 Collateral valuation Management adjustment to reflect current conditions and selling costs 6.75 % 7 0-10 Real estate loans: Commercial non-owner occupied 479 Collateral valuation Management adjustment to reflect current conditions and selling costs 7.00% - 7.50% 2 - 12 0-15 One-to-four family 54 Collateral valuation Management adjustment to reflect current conditions and selling costs 8.00% - 15.00% 5 - 16 0-10 Total collateral dependent impaired loans $ 921 Other real estate owned One-to-four family $ 285 Collateral valuation Management adjustment to reflect current conditions and selling costs — — 0-10 Land 752 Collateral valuation Management adjustment to reflect current conditions and selling costs — — 0-10 Total other real estate owned $ 1,037 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Company's unaudited earnings per share calculations | A reconciliation of the numerators and denominators used in basic and diluted earnings per share computations is presented in the table below. Income/(Loss) (numerator) Shares (denominator) Per Share Amount (dollars in thousands, except share data) For the year ended December 31, 2015: Net income applicable to earnings per share $ 25,515 Basic earnings per share: Income available to common stockholders 25,515 21,156,668 $ 1.21 Effect of dilutive securities: Warrants and stock option plans — 332,030 Diluted earnings per share: Income available to common stockholders $ 25,515 21,488,698 $ 1.19 For the year ended December 31, 2014: Net income applicable to earnings per share $ 16,616 Basic earnings per share: Income available to common stockholders 16,616 17,046,660 $ 0.97 Effect of dilutive securities: Warrants and stock option plans — 297,317 Diluted earnings per share: Income available to common stockholders $ 16,616 17,343,977 $ 0.96 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 |
Quarterly Results of Operatio50
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of selected financial data by quarter | The following is a summary of selected financial data presented below by quarter for the periods indicated: First Quarter Second Quarter Third Quarter Fourth Quarter (dollars in thousands, except per share data) For the year ended December 31, 2015: Interest income $ 26,626 $ 30,071 $ 29,747 $ 31,911 Interest expense 2,952 2,978 3,051 3,074 Provision for estimated loan losses 1,830 1,833 1,062 1,700 Noninterest income 1,470 4,380 4,378 4,217 Noninterest expense 20,469 17,214 17,374 18,539 Income tax provision 1,056 4,601 4,801 4,750 Net income $ 1,789 $ 7,825 $ 7,837 $ 8,065 Earnings per share: Basic $ 0.09 $ 0.36 $ 0.36 $ 0.38 Diluted $ 0.09 $ 0.36 $ 0.36 $ 0.37 For the year ended December 31, 2014: Interest income $ 18,156 $ 19,314 $ 21,333 $ 22,536 Interest expense 1,387 1,533 2,014 2,770 Provision for estimated loan losses 949 1,030 1,284 1,421 Noninterest income 1,918 2,388 4,168 4,903 Noninterest expense 13,541 11,641 13,343 16,468 Income tax provision 1,565 2,855 3,410 2,889 Net income (loss) $ 2,632 $ 4,643 $ 5,450 $ 3,891 Earnings per share: Basic $ 0.15 $ 0.28 $ 0.32 $ 0.23 Diluted $ 0.15 $ 0.27 $ 0.31 $ 0.23 |
Parent Company Financial Info51
Parent Company Financial Information (Tables) - Corporation | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Financial Information | |
Schedule of condensed balance sheets | PACIFIC PREMIER BANCORP, INC. STATEMENTS OF FINANCIAL CONDITION (Parent company only) At December 31, 2015 2014 (in thousands) Assets: Cash and cash equivalents $ 3,412 $ 18,724 Deferred income taxes — 3,566 Investment in subsidiaries 359,143 247,669 Other assets 8,502 1,544 Total Assets $ 371,057 $ 271,503 Liabilities: Subordinated debentures $ 70,310 $ 70,310 Accrued expenses and other liabilities 1,767 1,601 Total Liabilities 72,077 71,911 Total Stockholders’ Equity 298,980 199,592 Total Liabilities and Stockholders’ Equity $ 371,057 $ 271,503 |
Schedule of condensed statements of operations | PACIFIC PREMIER BANCORP, INC. STATEMENTS OF OPERATIONS (Parent company only) For the Years Ended December 31, 2015 2014 2013 (in thousands) Income: Interest income $ 27 $ 36 $ 20 Noninterest income — 2 3 Total income 27 38 23 Expense: Interest expense 3,937 1,543 307 Noninterest expense 2,831 1,874 2,141 Total expense 6,768 3,417 2,448 Loss before income tax provision (6,741 ) (3,379 ) (2,425 ) Income tax benefit (2,783 ) (1,275 ) (827 ) Net loss (parent only) (3,958 ) (2,104 ) (1,598 ) Equity in net earnings of subsidiaries 29,473 18,720 10,591 Net income $ 25,515 $ 16,616 $ 8,993 |
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, 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES (in thousands) Net income $ 25,515 $ 16,616 $ 8,993 Adjustments to reconcile net income to cash used in operating activities: Share-based compensation expense 1,165 514 943 Equity in undistributed earnings of subsidiaries and dividends from the bank (29,473 ) (16,248 ) (10,591 ) Increase (decrease) in accrued expenses and other liabilities 166 1,560 (39 ) Increase (decrease) in current and deferred taxes 3,566 (286 ) 1,153 Decrease (increase) in other assets (6,893 ) 232 (504 ) Net cash used in operating activities (5,954 ) 2,388 (45 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock, net of issuance cost — — 4,560 Repurchase of common stock (116 ) (5,638 ) (59 ) Proceeds from exercise of options and warrants 758 267 90 Capital contribution to Bank (10,000 ) (40,000 ) (8,700 ) Proceeds from issuance of subordinated debentures — 58,834 — Net cash provided by (used in) financing activities (9,358 ) 13,463 (4,109 ) Net increase (decrease) in cash and cash equivalents (15,312 ) 15,851 (4,154 ) Cash and cash equivalents, beginning of year 18,724 2,873 7,027 Cash and cash equivalents, end of year $ 3,412 $ 18,724 $ 2,873 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed and the provisional fair value adjustments and amounts recorded | The following table represents the assets acquired and liabilities assumed of IDPK as of January 26, 2015 and the provisional fair value adjustments and amounts recorded by the Company in 2015 under the acquisition method of accounting: IDPK Book Value Fair Value Adjustments Fair Value (dollars in thousands) ASSETS ACQUIRED Cash and cash equivalents $ 10,486 $ — $ 10,486 Investment securities 56,503 (382 ) 56,121 Loans, gross 339,502 (6,609 ) 332,893 Allowance for loan losses (3,301 ) 3,301 — Deferred income taxes 5,266 (472 ) 4,794 Bank owned life insurance 11,276 — 11,276 Core deposit intangible 904 1,999 2,903 Other assets 3,756 780 4,536 Total assets acquired $ 424,392 $ (1,383 ) $ 423,009 LIABILITIES ASSUMED Deposits 335,685 333 336,018 FHLB advances 33,300 — 33,300 Other liabilities 1,916 (120 ) 1,796 Total liabilities assumed 370,901 213 371,114 Excess of assets acquired over liabilities assumed $ 53,491 $ (1,596 ) 51,895 Consideration paid 79,777 Goodwill recognized $ 27,882 The following table represents the assets acquired and liabilities assumed of IFC as of January 30, 2014 and the provisional fair value adjustments and amounts recorded by the Company in 2014 under the acquisition method of accounting: IFC Book Value Fair Value Adjustments Fair Value (dollars in thousands) ASSETS ACQUIRED Cash and cash equivalents $ 555 $ — $ 555 Loans 78,833 — 78,833 Deferred loan costs 1,082 (1,082 ) — Allowance for loan losses (268 ) 268 — Other assets 776 — 776 Total assets acquired $ 80,978 $ (814 ) $ 80,164 LIABILITIES ASSUMED Bank loan $ 67,617 $ — $ 67,617 Accrued compensation 495 — 495 Other liabilities 214 — 214 Total liabilities assumed 68,326 — 68,326 Excess of assets acquired over liabilities assumed $ 12,652 $ (814 ) 11,838 Consideration paid 17,360 Goodwill recognized $ 5,522 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 Book Value Fair Value Adjustments Fair 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 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 Book Value Fair Value Adjustments Fair Value ASSETS ACQUIRED (dollars in thousands) 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 |
Schedule of contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates | For loans acquired from FAB, SDTB, IFC and IDPK, 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 FAB SDTB IFC IDPK (dollars in thousands) Contractual amounts due $ 32,107 $ 47,251 $ 98,320 $ 453,987 Cash flows not expected to be collected — — — 3,795 Expected cash flows 32,107 47,251 98,320 450,192 Interest component of expected cash flows 5,685 4,529 19,487 117,299 Fair value of acquired loans $ 26,422 $ 42,722 $ 78,833 $ 332,893 |
Summary of pro forma net interest and other income, net income and earnings per share | Unaudited pro forma net interest and other income, net income and earnings per share presented below: Twelve months Ended December 31, 2015 2014 2013 Net interest and other income $ 122,426 $ 110,727 $ 84,988 Net income 25,862 20,428 11,123 Basic earnings per share $ 1.22 $ 0.95 $ 0.54 Diluted earnings per share $ 1.20 $ 0.94 $ 0.52 |
Description of Business and S53
Description of Business and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)depository_branch | |
Accounting Policies [Abstract] | |
Percentage of capital stock of the Bank held | 100.00% |
Number of depository branches | depository_branch | 16 |
Cash and Cash Equivalents | |
Cash reserves required by the Board of Governors of the Federal Reserve for depository institutions (in dollars) | $ | $ 71.9 |
Premises | |
Premises, furniture and equipment | |
Estimated useful life (in years) | 40 years |
Furniture, fixtures and equipment | |
Premises, furniture and equipment | |
Estimated useful life (in years) | 7 years |
Computer and telecommunication | |
Premises, furniture and equipment | |
Estimated useful life (in years) | 3 years |
Core Deposits | Minimum | |
Premises, furniture and equipment | |
Weighted average useful life (in years) | 6 years |
Core Deposits | Maximum | |
Premises, furniture and equipment | |
Weighted average useful life (in years) | 10 years |
Regulatory Capital Requiremen54
Regulatory Capital Requirements and Other Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Tier 1 Capital (to adjusted tangible assets) | ||
Actual, Amount (in dollars) | $ 254,280 | $ 179,881 |
Actual, Ratio (as a percent) | 9.52% | 9.18% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | $ 106,886 | $ 78,401 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Common Equity Tier 1 Risk-Based Capital (to adjusted tangible assets) | ||
Actual, Amount (in dollars) | $ 245,224 | |
Actual, Ratio (as a percent) | 9.91% | |
Minimum Required for Capital Adequacy Purposes (in dollars) | $ 111,336 | |
Minimum Required for Capital Adequacy Purposes (as a percent) | 4.50% | |
Tier 1 Risk-Based Capital (to risk-weighted assets) | ||
Actual, Amount (in dollars) | $ 254,280 | $ 179,881 |
Actual, Ratio (as a percent) | 10.28% | 10.30% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | $ 148,448 | $ 69,855 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 4.00% |
Total Capital (to risk-weighted assets) | ||
Actual, Amount (in dollars) | $ 332,200 | $ 252,477 |
Actual, Ratio (as a percent) | 13.43% | 14.46% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | $ 197,931 | $ 139,709 |
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) | $ 304,442 | $ 221,523 |
Actual, Ratio (as a percent) | 11.41% | 11.29% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | $ 106,684 | $ 78,466 |
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) | $ 133,354 | $ 98,083 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio (as a percent) | 5.00% | 5.00% |
Common Equity Tier 1 Risk-Based Capital (to adjusted tangible assets) | ||
Actual, Amount (in dollars) | $ 304,442 | |
Actual, Ratio (as a percent) | 12.35% | |
Minimum Required for Capital Adequacy Purposes (in dollars) | $ 110,954 | |
Minimum Required for Capital Adequacy Purposes (as a percent) | 4.50% | |
Required to be Well Capitalized Under Prompt Corrective Action Regulations (in dollars) | $ 160,267 | |
Required to be Well Capitalized Under Prompt Corrective Action Regulations (as a percent) | 6.50% | |
Tier 1 Risk-Based Capital (to risk-weighted assets) | ||
Actual, Amount (in dollars) | $ 304,442 | $ 221,523 |
Actual, Ratio (as a percent) | 12.35% | 12.72% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | $ 147,938 | $ 69,650 |
Minimum Required for Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 4.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Amount (in dollars) | $ 197,251 | $ 104,475 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio (as a percent) | 8.00% | 6.00% |
Total Capital (to risk-weighted assets) | ||
Actual, Amount (in dollars) | $ 322,361 | $ 234,120 |
Actual, Ratio (as a percent) | 13.07% | 13.45% |
Minimum Required for Capital Adequacy Purposes Amount (in dollars) | $ 197,251 | $ 139,300 |
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) | $ 246,564 | $ 174,126 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio (as a percent) | 10.00% | 10.00% |
Investment Securities The amort
Investment Securities The amortized cost and estimated fair value of securities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)purchase_agreement | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Available-for-sale: | |||
Amortized Cost | $ 279,711 | $ 200,758 | |
Unrealized Gain | (1,953) | (1,667) | |
Unrealized Loss | (1,391) | (787) | |
Estimated Fair Value | 280,273 | 201,638 | |
Held-to-maturity: | |||
Amortized Cost | 9,642 | 0 | |
Unrealized Gain | 0 | ||
Unrealized Loss | (70) | ||
Estimated Fair Value | 9,572 | ||
Total securities | |||
Amortized Cost | 289,353 | ||
Unrealized Gain | 1,953 | ||
Unrealized Loss | (1,461) | ||
Estimated Fair Value | $ 289,845 | ||
Additional disclosures | |||
Number of inverse putable reverse repurchase of the Bank's secured by collateral | purchase_agreement | 3 | ||
Value of inverse putable reverse repurchases secured by collateral | $ 28,500 | ||
OTTI losses | 0 | (29) | $ 4 |
Gross gains | 317 | 2,100 | 2,000 |
Gross losses | (27) | (578) | (468) |
Proceeds from sale or maturity of securities available for sale | 27,642 | 166,341 | $ 234,067 |
Mortgage-backed securities | |||
Additional disclosures | |||
Estimated par value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 61,000 | ||
Fair value of securities pledged as collateral for the Bank's inverse putable reverse repurchases | 62,500 | ||
Home Owners Association Loans | |||
Additional disclosures | |||
Value of inverse putable reverse repurchases secured by collateral | 19,600 | ||
Municipal bonds | |||
Available-for-sale: | |||
Amortized Cost | 128,546 | 88,599 | |
Unrealized Gain | (1,796) | (1,235) | |
Unrealized Loss | (97) | (173) | |
Estimated Fair Value | 130,245 | 89,661 | |
Collateralized mortgage obligation | |||
Available-for-sale: | |||
Amortized Cost | 24,722 | 6,831 | |
Unrealized Gain | (4) | (31) | |
Unrealized Loss | (183) | 0 | |
Estimated Fair Value | 24,543 | 6,862 | |
Mortgage-backed securities | |||
Available-for-sale: | |||
Amortized Cost | 126,443 | 105,328 | |
Unrealized Gain | (153) | (401) | |
Unrealized Loss | (1,111) | (614) | |
Estimated Fair Value | 125,485 | $ 105,115 | |
Held-to-maturity: | |||
Amortized Cost | 8,400 | ||
Unrealized Gain | 0 | ||
Unrealized Loss | (70) | ||
Estimated Fair Value | 8,330 | ||
Other | |||
Held-to-maturity: | |||
Amortized Cost | 1,242 | ||
Unrealized Gain | 0 | ||
Unrealized Loss | 0 | ||
Estimated Fair Value | $ 1,242 |
Investment Securities Number, f
Investment Securities Number, fair value and gross unrealized holding losses (Details) $ in Thousands | Dec. 31, 2015USD ($)investment_security | Dec. 31, 2014USD ($)investment_security |
Number | ||
Less than 12 months (in investments) | investment_security | 71 | 42 |
12 months or Longer (in investments) | investment_security | 9 | 20 |
Total (in investments) | investment_security | 80 | 62 |
Fair Value | ||
Less than 12 months | $ 121,775 | $ 42,482 |
12 months or Longer | 16,284 | 25,352 |
Total | 138,059 | 67,834 |
Gross Unrealized Holding Losses | ||
Less than 12 months | (923) | (222) |
12 months or Longer | (468) | (565) |
Total | $ (1,391) | $ (787) |
Number | ||
Less than 12 months (in investments) | investment_security | 1 | |
12 months or Longer (in investments) | investment_security | 0 | |
Total (in investments) | investment_security | 1 | |
Fair Value | ||
Less than 12 months | $ 8,330 | |
12 months or Longer | 0 | |
Total | 8,330 | |
Gross Unrealized Holding Losses | ||
Less than 12 months | (70) | |
12 months or Longer | 0 | |
Total | $ (70) | |
Total securities | ||
Number, Less than 12 months (in investments) | investment_security | 72 | |
Number, 12 months or Longer (in investments) | investment_security | 9 | |
Number, Total (in investments) | investment_security | 81 | |
Fair Value, Less than 12 months | $ 130,105 | |
Fair Value, 12 months or Longer | 16,284 | |
Fair Value, Total | 146,389 | |
Gross Unrealized Holding Losses, Less than 12 months | (993) | |
Gross Unrealized Holding Losses, 12 months or longer | (468) | |
Gross Unrealized Holding Losses, Total | $ (1,461) | |
Municipal bonds | ||
Number | ||
Less than 12 months (in investments) | investment_security | 32 | 35 |
12 months or Longer (in investments) | investment_security | 6 | 16 |
Total (in investments) | investment_security | 38 | 51 |
Fair Value | ||
Less than 12 months | $ 15,516 | $ 18,129 |
12 months or Longer | 3,349 | 6,510 |
Total | 18,865 | 24,639 |
Gross Unrealized Holding Losses | ||
Less than 12 months | (61) | (117) |
12 months or Longer | (36) | (56) |
Total | $ (97) | $ (173) |
Collateralized mortgage obligation | ||
Number | ||
Less than 12 months (in investments) | investment_security | 5 | |
12 months or Longer (in investments) | investment_security | 0 | |
Total (in investments) | investment_security | 5 | |
Fair Value | ||
Less than 12 months | $ 22,771 | |
12 months or Longer | 0 | |
Total | 22,771 | |
Gross Unrealized Holding Losses | ||
Less than 12 months | (183) | |
12 months or Longer | 0 | |
Total | $ (183) | |
Mortgage-backed securities | ||
Number | ||
Less than 12 months (in investments) | investment_security | 34 | 7 |
12 months or Longer (in investments) | investment_security | 3 | 4 |
Total (in investments) | investment_security | 37 | 11 |
Fair Value | ||
Less than 12 months | $ 83,488 | $ 24,353 |
12 months or Longer | 12,935 | 18,842 |
Total | 96,423 | 43,195 |
Gross Unrealized Holding Losses | ||
Less than 12 months | (679) | (105) |
12 months or Longer | (432) | (509) |
Total | $ (1,111) | $ (614) |
Number | ||
Less than 12 months (in investments) | investment_security | 1 | |
12 months or Longer (in investments) | investment_security | 0 | |
Total (in investments) | investment_security | 1 | |
Fair Value | ||
Less than 12 months | $ 8,330 | |
12 months or Longer | 0 | |
Total | 8,330 | |
Gross Unrealized Holding Losses | ||
Less than 12 months | (70) | |
12 months or Longer | 0 | |
Total | $ (70) |
Investment Securities Contractu
Investment Securities Contractual maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
One Year or Less | $ 1,067 | |
More than One Year to Five Years | 26,998 | |
More than Five Years to Ten Years | 71,630 | |
More than Ten Years | 180,016 | |
Amortized Cost | 279,711 | $ 200,758 |
Fair Value | ||
One Year or Less | 1,068 | |
More than One Year to Five Years | 27,134 | |
More than Five Years to Ten Years | 72,307 | |
More than Ten Years | 179,764 | |
Total | 280,273 | 201,638 |
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 9,642 | |
Amortized Cost | 9,642 | 0 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 9,572 | |
Total | 9,572 | |
Amortized Cost | ||
One Year or Less | 1,067 | |
More than One Year to Five Years | 26,998 | |
More than Five Years to Ten Years | 71,630 | |
More than Ten Years | 189,658 | |
Total | 289,353 | |
Fair Value | ||
One Year or Less | 1,068 | |
More than One Year to Five Years | 27,134 | |
More than Five Years to Ten Years | 72,307 | |
More than Ten Years | 189,336 | |
Total | 289,845 | |
Accumulated other comprehensive income (loss) | (562) | 880 |
Accumulated other comprehensive income (loss), net of tax | 332 | 518 |
Municipal bonds | ||
Amortized Cost | ||
One Year or Less | 1,067 | |
More than One Year to Five Years | 26,998 | |
More than Five Years to Ten Years | 43,968 | |
More than Ten Years | 56,513 | |
Amortized Cost | 128,546 | 88,599 |
Fair Value | ||
One Year or Less | 1,068 | |
More than One Year to Five Years | 27,134 | |
More than Five Years to Ten Years | 44,695 | |
More than Ten Years | 57,348 | |
Total | 130,245 | 89,661 |
Collateralized mortgage obligation | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 24,722 | |
Amortized Cost | 24,722 | 6,831 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 24,543 | |
Total | 24,543 | 6,862 |
Other | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 1,242 | |
Amortized Cost | 1,242 | |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 1,242 | |
Total | 1,242 | |
Mortgage-backed securities | ||
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 27,662 | |
More than Ten Years | 98,781 | |
Amortized Cost | 126,443 | 105,328 |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 27,612 | |
More than Ten Years | 97,873 | |
Total | 125,485 | $ 105,115 |
Amortized Cost | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 8,400 | |
Amortized Cost | 8,400 | |
Fair Value | ||
One Year or Less | 0 | |
More than One Year to Five Years | 0 | |
More than Five Years to Ten Years | 0 | |
More than Ten Years | 8,330 | |
Total | $ 8,330 |
Investment Securities FHLB, FRB
Investment Securities FHLB, FRB, and other stock (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Federal Home Loan Bank Stock | $ 11.4 | ||
Federal Reserve Bank Stock | 7.9 | ||
Other stock | 3 | ||
Excess Federal Home Loan Bank Stock with Entity Repurchased by Federal Home Loan Bank | $ 16.4 | $ 3.4 | $ 4.3 |
Loans (Details)
Loans (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loans Held for Investment | ||||
Total gross loans | $ 2,262,683,000 | $ 1,628,445,000 | $ 1,243,252,000 | |
Less loans held for sale, net | 8,565,000 | 0 | ||
Total gross loans held for investment | 2,254,118,000 | 1,628,445,000 | ||
Deferred loan origination costs and premiums, net | (197,000) | (177,000) | ||
Allowance for loan losses | (17,317,000) | (12,200,000) | (8,200,000) | $ (7,994,000) |
Loans held for investment, net | 2,236,998,000 | 1,616,422,000 | ||
Unpaid principal balance for loans and participations serviced for others | 188,000,000 | 95,200,000 | ||
Secured loans limit to one borrower | 94,100,000 | |||
Unsecured loans limit to one borrower | 56,500,000 | |||
Aggregate outstanding balance of loans to one borrower of secured credit | $ 30,300,000 | |||
Maximum | ||||
Loans Held for Investment | ||||
Secured loans limit to one borrower (as a percent) | 25.00% | |||
Unsecured loans limit to one borrower (as a percent) | 15.00% | |||
Business loans: Commercial and industrial | ||||
Loans Held for Investment | ||||
Total gross loans | $ 309,741,000 | 228,979,000 | 187,035,000 | |
Allowance for loan losses | (3,449,000) | (2,646,000) | (1,968,000) | (1,310,000) |
Business loans: Franchise loans | ||||
Loans Held for Investment | ||||
Total gross loans | 328,925,000 | 199,228,000 | 0 | |
Allowance for loan losses | (3,124,000) | (1,554,000) | 0 | 0 |
Business loans: Commercial owner occupied | ||||
Loans Held for Investment | ||||
Total gross loans | 294,726,000 | 210,995,000 | 221,089,000 | |
Allowance for loan losses | (1,870,000) | (1,757,000) | (1,818,000) | (1,512,000) |
Business loans: SBA | ||||
Loans Held for Investment | ||||
Total gross loans | 62,256,000 | 28,404,000 | 10,659,000 | |
Allowance for loan losses | (1,500,000) | (568,000) | (151,000) | (79,000) |
Business loans: Warehouse facilities | ||||
Loans Held for Investment | ||||
Total gross loans | 143,200,000 | 113,798,000 | 87,517,000 | |
Allowance for loan losses | (759,000) | (546,000) | (392,000) | (1,544,000) |
Real estate loans: Commercial non-owner occupied | ||||
Loans Held for Investment | ||||
Total gross loans | 421,583,000 | 359,213,000 | 333,544,000 | |
Allowance for loan losses | (2,048,000) | (2,007,000) | (1,658,000) | (1,459,000) |
Real estate loans: Multi-family | ||||
Loans Held for Investment | ||||
Total gross loans | 429,003,000 | 262,965,000 | 233,689,000 | |
Allowance for loan losses | (1,583,000) | (1,060,000) | (817,000) | (1,145,000) |
Real estate loans: One-to-four family | ||||
Loans Held for Investment | ||||
Total gross loans | 80,050,000 | 122,795,000 | 145,235,000 | |
Allowance for loan losses | (698,000) | (842,000) | (1,099,000) | (862,000) |
Real estate loans: Construction | ||||
Loans Held for Investment | ||||
Total gross loans | 169,748,000 | 89,682,000 | 13,040,000 | |
Allowance for loan losses | (2,030,000) | (1,088,000) | (136,000) | 0 |
Real estate loans: Land | ||||
Loans Held for Investment | ||||
Total gross loans | 18,340,000 | 9,088,000 | 7,605,000 | |
Allowance for loan losses | (233,000) | (108,000) | (127,000) | (31,000) |
Other loans | ||||
Loans Held for Investment | ||||
Total gross loans | 5,111,000 | 3,298,000 | 3,839,000 | |
Allowance for loan losses | $ (23,000) | $ (24,000) | $ (34,000) | $ (52,000) |
Loans Purchased Credit Impaired
Loans Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans Held for Investment | ||
Total purchase credit impaired | $ 3,346 | $ 1,601 |
Business loans: Commercial and industrial | ||
Loans Held for Investment | ||
Total purchase credit impaired | 289 | 94 |
Business loans: Commercial owner occupied | ||
Loans Held for Investment | ||
Total purchase credit impaired | 884 | 546 |
Real estate loans: Commercial non-owner occupied | ||
Loans Held for Investment | ||
Total purchase credit impaired | 2,088 | 956 |
Real estate loans: One-to-four family | ||
Loans Held for Investment | ||
Total purchase credit impaired | $ 85 | $ 5 |
Loans Accretable yield on the p
Loans Accretable yield on the purchased credit impaired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accretable yield on purchased credit impaired | |||
Balance at the beginning of period | $ 1,403 | $ 1,676 | $ 2,276 |
Accretable yield at acquisition | 602 | 0 | 0 |
Accretion | (385) | (255) | (557) |
Disposals and other | (249) | (18) | (648) |
Change in accretable yield | 1,355 | 0 | 605 |
Balance at the end of period | $ 2,726 | $ 1,403 | $ 1,676 |
Loans Investment in impaired lo
Loans Investment in impaired loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired Loans | |||
Recorded Investment | $ 2,784 | $ 1,472 | $ 2,427 |
Unpaid Principal Balance | 4,319 | 1,913 | 3,066 |
With Specific Allowance | 1,461 | 0 | 306 |
Without Specific Allowance | 1,323 | 1,472 | 2,121 |
Specific Allowance for Impaired Loans | 731 | 0 | 105 |
Average Recorded Investment | 2,538 | 1,878 | 2,337 |
Interest Income Recognized | 123 | 148 | 225 |
Nonaccruing loans | 4,000 | 1,400 | 2,300 |
Additional loan interest income, had such loans been performing | 279 | 151 | 311 |
Business loans: Commercial and industrial | |||
Impaired Loans | |||
Recorded Investment | 313 | 0 | 0 |
Unpaid Principal Balance | 578 | 0 | 0 |
With Specific Allowance | 0 | 0 | 0 |
Without Specific Allowance | 313 | 0 | 0 |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 90 | 11 | 255 |
Interest Income Recognized | 29 | 0 | 17 |
Business loans: Franchise loans | |||
Impaired Loans | |||
Recorded Investment | 1,630 | ||
Unpaid Principal Balance | 2,394 | ||
With Specific Allowance | 1,461 | ||
Without Specific Allowance | 169 | ||
Specific Allowance for Impaired Loans | 731 | 0 | 0 |
Average Recorded Investment | 1,386 | ||
Interest Income Recognized | 3 | ||
Business loans: Commercial owner occupied | |||
Impaired Loans | |||
Recorded Investment | 536 | 388 | 747 |
Unpaid Principal Balance | 883 | 440 | 872 |
With Specific Allowance | 0 | 0 | 0 |
Without Specific Allowance | 536 | 388 | 747 |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 415 | 514 | 177 |
Interest Income Recognized | 67 | 46 | 66 |
Business loans: SBA | |||
Impaired Loans | |||
Recorded Investment | 0 | 14 | |
Unpaid Principal Balance | 0 | 246 | |
With Specific Allowance | 0 | 0 | |
Without Specific Allowance | 0 | 14 | |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 5 | 70 | |
Interest Income Recognized | 0 | 28 | |
Real estate loans: Commercial non-owner occupied | |||
Impaired Loans | |||
Recorded Investment | 214 | 848 | 983 |
Unpaid Principal Balance | 329 | 1,217 | 1,202 |
With Specific Allowance | 0 | 0 | 28 |
Without Specific Allowance | 214 | 848 | 955 |
Specific Allowance for Impaired Loans | 0 | 0 | 1 |
Average Recorded Investment | 430 | 908 | 984 |
Interest Income Recognized | 19 | 85 | 68 |
Real estate loans: Multi-family | |||
Impaired Loans | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
With Specific Allowance | 0 | 0 | |
Without Specific Allowance | 0 | 0 | |
Specific Allowance for Impaired Loans | 0 | 0 | 0 |
Average Recorded Investment | 0 | 108 | |
Interest Income Recognized | 0 | 2 | |
Real estate loans: One-to-four family | |||
Impaired Loans | |||
Recorded Investment | 70 | 236 | 683 |
Unpaid Principal Balance | 98 | 256 | 746 |
With Specific Allowance | 0 | 0 | 278 |
Without Specific Allowance | 70 | 236 | 405 |
Specific Allowance for Impaired Loans | 0 | 0 | 104 |
Average Recorded Investment | 204 | 440 | 743 |
Interest Income Recognized | 5 | 17 | 44 |
Real estate loans: Land | |||
Impaired Loans | |||
Recorded Investment | 21 | ||
Unpaid Principal Balance | 37 | ||
With Specific Allowance | 0 | ||
Without Specific Allowance | 21 | ||
Specific Allowance for Impaired Loans | 0 | $ 0 | $ 0 |
Average Recorded Investment | 13 | ||
Interest Income Recognized | $ 0 |
Internal risk grading system (D
Internal risk grading system (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)areagrade | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Receivables [Abstract] | |||
Number of areas where the entity's credit quality is maintained and credit risk managed | area | 2 | ||
Number of Pass scale grades | grade | 6 | ||
Credit Risk Grades | |||
Total Gross Loans | $ 2,262,683 | $ 1,628,445 | $ 1,243,252 |
Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 309,741 | 228,979 | 187,035 |
Business loans: Franchise loans | |||
Credit Risk Grades | |||
Total Gross Loans | 328,925 | 199,228 | 0 |
Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 294,726 | 210,995 | 221,089 |
Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 62,256 | 28,404 | 10,659 |
Business loans: Warehouse facilities | |||
Credit Risk Grades | |||
Total Gross Loans | 143,200 | 113,798 | 87,517 |
Real estate loans: Commercial non-owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 421,583 | 359,213 | 333,544 |
Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 429,003 | 262,965 | 233,689 |
Real estate loans: One-to-four family | |||
Credit Risk Grades | |||
Total Gross Loans | 80,050 | 122,795 | 145,235 |
Real estate loans: Construction | |||
Credit Risk Grades | |||
Total Gross Loans | 169,748 | 89,682 | 13,040 |
Real estate loans: Land | |||
Credit Risk Grades | |||
Total Gross Loans | 18,340 | 9,088 | 7,605 |
Other loans | |||
Credit Risk Grades | |||
Total Gross Loans | 5,111 | 3,298 | $ 3,839 |
Pass | |||
Credit Risk Grades | |||
Total Gross Loans | 2,242,242 | 1,612,143 | |
Pass | Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 306,513 | 227,151 | |
Pass | Business loans: Franchise loans | |||
Credit Risk Grades | |||
Total Gross Loans | 327,295 | 199,228 | |
Pass | Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 286,270 | 202,390 | |
Pass | Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 62,256 | 28,132 | |
Pass | Business loans: Warehouse facilities | |||
Credit Risk Grades | |||
Total Gross Loans | 143,200 | 113,798 | |
Pass | Real estate loans: Commercial non-owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 418,917 | 355,274 | |
Pass | Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 425,616 | 261,956 | |
Pass | Real estate loans: One-to-four family | |||
Credit Risk Grades | |||
Total Gross Loans | 78,997 | 122,146 | |
Pass | Real estate loans: Construction | |||
Credit Risk Grades | |||
Total Gross Loans | 169,748 | 89,682 | |
Pass | Real estate loans: Land | |||
Credit Risk Grades | |||
Total Gross Loans | 18,319 | 9,088 | |
Pass | Other loans | |||
Credit Risk Grades | |||
Total Gross Loans | 5,111 | 3,298 | |
Special Mention | |||
Credit Risk Grades | |||
Total Gross Loans | 700 | 773 | |
Special Mention | Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 73 | 0 | |
Special Mention | Business loans: Franchise loans | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Special Mention | Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 627 | 0 | |
Special Mention | Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 272 | |
Special Mention | Business loans: Warehouse facilities | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Special Mention | Real estate loans: Commercial non-owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Special Mention | Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 501 | |
Special Mention | Real estate loans: One-to-four family | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Special Mention | Real estate loans: Construction | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Special Mention | Real estate loans: Land | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Special Mention | Other loans | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Substandard | |||
Credit Risk Grades | |||
Total Gross Loans | 18,280 | 15,529 | |
Substandard | Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 3,155 | 1,828 | |
Substandard | Business loans: Franchise loans | |||
Credit Risk Grades | |||
Total Gross Loans | 169 | 0 | |
Substandard | Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 7,829 | 8,605 | |
Substandard | Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Substandard | Business loans: Warehouse facilities | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Substandard | Real estate loans: Commercial non-owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 2,666 | 3,939 | |
Substandard | Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 3,387 | 508 | |
Substandard | Real estate loans: One-to-four family | |||
Credit Risk Grades | |||
Total Gross Loans | 1,053 | 649 | |
Substandard | Real estate loans: Construction | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Substandard | Real estate loans: Land | |||
Credit Risk Grades | |||
Total Gross Loans | 21 | 0 | |
Substandard | Other loans | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | |||
Credit Risk Grades | |||
Total Gross Loans | 1,461 | 0 | |
Doubtful | Business loans: Commercial and industrial | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Business loans: Franchise loans | |||
Credit Risk Grades | |||
Total Gross Loans | 1,461 | 0 | |
Doubtful | Business loans: Commercial owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Business loans: SBA | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Business loans: Warehouse facilities | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Real estate loans: Commercial non-owner occupied | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Real estate loans: Multi-family | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Real estate loans: One-to-four family | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Real estate loans: Construction | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Real estate loans: Land | |||
Credit Risk Grades | |||
Total Gross Loans | 0 | 0 | |
Doubtful | Other loans | |||
Credit Risk Grades | |||
Total Gross Loans | $ 0 | $ 0 |
Loans Days past due and Non-acc
Loans Days past due and Non-accruing (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other information concerning the credit quality | |||
Total Gross Loans | $ 2,262,683 | $ 1,628,445 | $ 1,243,252 |
Non-accruing | 3,970 | 1,444 | |
Business loans: Commercial and industrial | |||
Other information concerning the credit quality | |||
Total Gross Loans | 309,741 | 228,979 | 187,035 |
Non-accruing | 463 | 0 | |
Business loans: Franchise loans | |||
Other information concerning the credit quality | |||
Total Gross Loans | 328,925 | 199,228 | 0 |
Non-accruing | 1,630 | 0 | |
Business loans: Commercial owner occupied | |||
Other information concerning the credit quality | |||
Total Gross Loans | 294,726 | 210,995 | 221,089 |
Non-accruing | 536 | 514 | |
Business loans: SBA | |||
Other information concerning the credit quality | |||
Total Gross Loans | 62,256 | 28,404 | 10,659 |
Non-accruing | 0 | 0 | |
Business loans: Warehouse facilities | |||
Other information concerning the credit quality | |||
Total Gross Loans | 143,200 | 113,798 | 87,517 |
Non-accruing | 0 | 0 | |
Real estate loans: Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Total Gross Loans | 421,583 | 359,213 | 333,544 |
Non-accruing | 1,164 | 848 | |
Real estate loans: Multi-family | |||
Other information concerning the credit quality | |||
Total Gross Loans | 429,003 | 262,965 | 233,689 |
Non-accruing | 0 | 0 | |
Real estate loans: One-to-four family | |||
Other information concerning the credit quality | |||
Total Gross Loans | 80,050 | 122,795 | 145,235 |
Non-accruing | 155 | 82 | |
Real estate loans: Construction | |||
Other information concerning the credit quality | |||
Total Gross Loans | 169,748 | 89,682 | 13,040 |
Non-accruing | 0 | 0 | |
Real estate loans: Land | |||
Other information concerning the credit quality | |||
Total Gross Loans | 18,340 | 9,088 | 7,605 |
Non-accruing | 21 | 0 | |
Other loans | |||
Other information concerning the credit quality | |||
Total Gross Loans | 5,111 | 3,298 | $ 3,839 |
Non-accruing | 1 | 0 | |
Current | |||
Other information concerning the credit quality | |||
Current | 2,260,051 | 1,628,347 | |
Current | Business loans: Commercial and industrial | |||
Other information concerning the credit quality | |||
Current | 309,464 | 228,955 | |
Current | Business loans: Franchise loans | |||
Other information concerning the credit quality | |||
Current | 327,295 | 199,228 | |
Current | Business loans: Commercial owner occupied | |||
Other information concerning the credit quality | |||
Current | 294,371 | 210,995 | |
Current | Business loans: SBA | |||
Other information concerning the credit quality | |||
Current | 62,256 | 28,404 | |
Current | Business loans: Warehouse facilities | |||
Other information concerning the credit quality | |||
Current | 143,200 | 113,798 | |
Current | Real estate loans: Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Current | 421,369 | 359,213 | |
Current | Real estate loans: Multi-family | |||
Other information concerning the credit quality | |||
Current | 429,003 | 262,965 | |
Current | Real estate loans: One-to-four family | |||
Other information concerning the credit quality | |||
Current | 79,915 | 122,722 | |
Current | Real estate loans: Construction | |||
Other information concerning the credit quality | |||
Current | 169,748 | 89,682 | |
Current | Real estate loans: Land | |||
Other information concerning the credit quality | |||
Current | 18,319 | 9,088 | |
Current | Other loans | |||
Other information concerning the credit quality | |||
Current | 5,111 | 3,297 | |
30-59 | |||
Other information concerning the credit quality | |||
Days Past Due | 323 | 20 | |
30-59 | Business loans: Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 20 | 0 | |
30-59 | Business loans: Franchise loans | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Business loans: Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Business loans: SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Business loans: Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Real estate loans: Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 214 | 0 | |
30-59 | Real estate loans: Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Real estate loans: One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 89 | 19 | |
30-59 | Real estate loans: Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Real estate loans: Land | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
30-59 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 1 | |
60-89 | |||
Other information concerning the credit quality | |||
Days Past Due | 355 | 24 | |
60-89 | Business loans: Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 24 | |
60-89 | Business loans: Franchise loans | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Business loans: Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 355 | 0 | |
60-89 | Business loans: SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Business loans: Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Real estate loans: Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Real estate loans: Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Real estate loans: One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Real estate loans: Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Real estate loans: Land | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
60-89 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | |||
Other information concerning the credit quality | |||
Days Past Due | 1,954 | 54 | |
90 | Business loans: Commercial and industrial | |||
Other information concerning the credit quality | |||
Days Past Due | 257 | 0 | |
90 | Business loans: Franchise loans | |||
Other information concerning the credit quality | |||
Days Past Due | 1,630 | 0 | |
90 | Business loans: Commercial owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Business loans: SBA | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Business loans: Warehouse facilities | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Real estate loans: Commercial non-owner occupied | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Real estate loans: Multi-family | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Real estate loans: One-to-four family | |||
Other information concerning the credit quality | |||
Days Past Due | 46 | 54 | |
90 | Real estate loans: Construction | |||
Other information concerning the credit quality | |||
Days Past Due | 0 | 0 | |
90 | Real estate loans: Land | |||
Other information concerning the credit quality | |||
Days Past Due | 21 | 0 | |
90 | Other loans | |||
Other information concerning the credit quality | |||
Days Past Due | $ 0 | $ 0 |
Allowance for Loan Losses (Deta
Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | $ 12,200 | $ 8,200 | $ 12,200 | $ 8,200 | $ 7,994 | ||||||
Charge-offs | (1,380) | 783 | (2,031) | ||||||||
Recoveries | 72 | 99 | 377 | ||||||||
Provisions for (reduction in) loan losses | $ 1,700 | $ 1,062 | $ 1,833 | 1,830 | $ 1,421 | $ 1,284 | $ 1,030 | 949 | 6,425 | 4,684 | 1,860 |
Balance, at the end of the period | 17,317 | 12,200 | 17,317 | 12,200 | 8,200 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 731 | 0 | 731 | 0 | 105 | ||||||
General portfolio allocation | 16,586 | 12,200 | 16,586 | 12,200 | 8,095 | ||||||
Loans individually evaluated for impairment | 2,784 | 1,472 | $ 2,784 | $ 1,472 | $ 2,427 | ||||||
Specific reserves to total loans individually evaluated for impairment | 16.93% | 0.00% | 4.33% | ||||||||
Loans collectively evaluated for impairment | 2,259,899 | 1,626,973 | $ 2,259,899 | $ 1,626,973 | $ 1,240,825 | ||||||
General reserves to total loans collectively evaluated for impairment | 0.73% | 0.75% | 0.65% | ||||||||
Total gross loans | 2,262,683 | 1,628,445 | $ 2,262,683 | $ 1,628,445 | $ 1,243,252 | ||||||
Total allowance to gross loans (as a percent) | 0.77% | 0.75% | 0.66% | ||||||||
Multi Family And Non Owner Occupied Commercial Real Estate Loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Annualized Trailing Period Six Considered For Determination Of Allowance For Loan Losses Factor | 84 months | ||||||||||
Business loans: Franchise loans | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 1,554 | 0 | $ 1,554 | $ 0 | $ 0 | ||||||
Charge-offs | (764) | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions for (reduction in) loan losses | 2,334 | 1,554 | 0 | ||||||||
Balance, at the end of the period | 3,124 | 1,554 | 3,124 | 1,554 | 0 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 731 | 0 | 731 | 0 | 0 | ||||||
General portfolio allocation | 2,393 | 1,554 | 2,393 | 1,554 | 0 | ||||||
Loans individually evaluated for impairment | 1,630 | 0 | $ 1,630 | $ 0 | $ 0 | ||||||
Specific reserves to total loans individually evaluated for impairment | 30.53% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 327,295 | 199,228 | $ 327,295 | $ 199,228 | $ 0 | ||||||
General reserves to total loans collectively evaluated for impairment | 0.73% | 0.78% | 0.00% | ||||||||
Total gross loans | 328,925 | 199,228 | $ 328,925 | $ 199,228 | $ 0 | ||||||
Total allowance to gross loans (as a percent) | 0.95% | 0.78% | 0.00% | ||||||||
Business loans: Commercial and industrial | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 2,646 | 1,968 | $ 2,646 | $ 1,968 | $ 1,310 | ||||||
Charge-offs | (484) | (223) | (509) | ||||||||
Recoveries | 47 | 42 | 138 | ||||||||
Provisions for (reduction in) loan losses | 1,240 | 859 | 1,029 | ||||||||
Balance, at the end of the period | 3,449 | 2,646 | 3,449 | 2,646 | 1,968 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||||||
General portfolio allocation | 3,449 | 2,646 | 3,449 | 2,646 | 1,968 | ||||||
Loans individually evaluated for impairment | 313 | 0 | $ 313 | $ 0 | $ 0 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 309,428 | 228,979 | $ 309,428 | $ 228,979 | $ 187,035 | ||||||
General reserves to total loans collectively evaluated for impairment | 1.11% | 1.16% | 1.05% | ||||||||
Total gross loans | 309,741 | 228,979 | $ 309,741 | $ 228,979 | $ 187,035 | ||||||
Total allowance to gross loans (as a percent) | 1.11% | 1.16% | 1.05% | ||||||||
Business loans: Commercial owner occupied | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 1,757 | 1,818 | $ 1,757 | $ 1,818 | $ 1,512 | ||||||
Charge-offs | 0 | 0 | (232) | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions for (reduction in) loan losses | 113 | (61) | 538 | ||||||||
Balance, at the end of the period | 1,870 | 1,757 | 1,870 | 1,757 | 1,818 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||||||
General portfolio allocation | 1,870 | 1,757 | 1,870 | 1,757 | 1,818 | ||||||
Loans individually evaluated for impairment | 536 | 388 | $ 536 | $ 388 | $ 747 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 294,190 | 210,607 | $ 294,190 | $ 210,607 | $ 220,342 | ||||||
General reserves to total loans collectively evaluated for impairment | 0.64% | 0.83% | 0.83% | ||||||||
Total gross loans | 294,726 | 210,995 | $ 294,726 | $ 210,995 | $ 221,089 | ||||||
Total allowance to gross loans (as a percent) | 0.63% | 0.83% | 0.82% | ||||||||
Business loans: SBA | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 568 | 151 | $ 568 | $ 151 | $ 79 | ||||||
Charge-offs | 0 | 0 | (143) | ||||||||
Recoveries | 8 | 4 | 50 | ||||||||
Provisions for (reduction in) loan losses | 924 | 413 | 165 | ||||||||
Balance, at the end of the period | 1,500 | 568 | 1,500 | 568 | 151 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||||||
General portfolio allocation | 1,500 | 568 | 1,500 | 568 | 151 | ||||||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | $ 14 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 62,256 | 28,404 | $ 62,256 | $ 28,404 | $ 10,645 | ||||||
General reserves to total loans collectively evaluated for impairment | 2.41% | 2.00% | 1.42% | ||||||||
Total gross loans | 62,256 | 28,404 | $ 62,256 | $ 28,404 | $ 10,659 | ||||||
Total allowance to gross loans (as a percent) | 2.41% | 2.00% | 1.42% | ||||||||
Business loans: Warehouse facilities | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 546 | 392 | $ 546 | $ 392 | $ 1,544 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions for (reduction in) loan losses | 213 | 154 | (1,152) | ||||||||
Balance, at the end of the period | 759 | 546 | 759 | 546 | 392 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||||||
General portfolio allocation | 759 | 546 | 759 | 546 | 392 | ||||||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 143,200 | 113,798 | $ 143,200 | $ 113,798 | $ 87,517 | ||||||
General reserves to total loans collectively evaluated for impairment | 0.53% | 0.48% | 0.45% | ||||||||
Total gross loans | 143,200 | 113,798 | $ 143,200 | $ 113,798 | $ 87,517 | ||||||
Total allowance to gross loans (as a percent) | 0.53% | 0.48% | 0.45% | ||||||||
Real estate loans: Commercial non-owner occupied | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 2,007 | 1,658 | $ 2,007 | $ 1,658 | $ 1,459 | ||||||
Charge-offs | (116) | (365) | (756) | ||||||||
Recoveries | 3 | 0 | 0 | ||||||||
Provisions for (reduction in) loan losses | 154 | 714 | 955 | ||||||||
Balance, at the end of the period | 2,048 | 2,007 | 2,048 | 2,007 | 1,658 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 1 | ||||||
General portfolio allocation | 2,048 | 2,007 | 2,048 | 2,007 | 1,657 | ||||||
Loans individually evaluated for impairment | 214 | 848 | $ 214 | $ 848 | $ 983 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.10% | ||||||||
Loans collectively evaluated for impairment | 421,369 | 358,365 | $ 421,369 | $ 358,365 | $ 332,561 | ||||||
General reserves to total loans collectively evaluated for impairment | 0.49% | 0.56% | 0.50% | ||||||||
Total gross loans | 421,583 | 359,213 | $ 421,583 | $ 359,213 | $ 333,544 | ||||||
Total allowance to gross loans (as a percent) | 0.49% | 0.56% | 0.50% | ||||||||
Real estate loans: Multi-family | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 1,060 | 817 | $ 1,060 | $ 817 | $ 1,145 | ||||||
Charge-offs | 0 | 0 | (101) | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions for (reduction in) loan losses | 523 | 243 | (227) | ||||||||
Balance, at the end of the period | 1,583 | 1,060 | 1,583 | 1,060 | 817 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||||||
General portfolio allocation | 1,583 | 1,060 | 1,583 | 1,060 | 817 | ||||||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 429,003 | 262,965 | $ 429,003 | $ 262,965 | $ 233,689 | ||||||
General reserves to total loans collectively evaluated for impairment | 0.37% | 0.40% | 0.35% | ||||||||
Total gross loans | 429,003 | 262,965 | $ 429,003 | $ 262,965 | $ 233,689 | ||||||
Total allowance to gross loans (as a percent) | 0.37% | 0.40% | 0.35% | ||||||||
Real estate loans: One-to-four family | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 842 | 1,099 | $ 842 | $ 1,099 | $ 862 | ||||||
Charge-offs | (16) | (195) | (272) | ||||||||
Recoveries | 13 | 34 | 47 | ||||||||
Provisions for (reduction in) loan losses | (141) | (96) | 462 | ||||||||
Balance, at the end of the period | 698 | 842 | 698 | 842 | 1,099 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 104 | ||||||
General portfolio allocation | 698 | 842 | 698 | 842 | 995 | ||||||
Loans individually evaluated for impairment | 70 | 236 | $ 70 | $ 236 | $ 683 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 15.23% | ||||||||
Loans collectively evaluated for impairment | 79,980 | 122,559 | $ 79,980 | $ 122,559 | $ 144,552 | ||||||
General reserves to total loans collectively evaluated for impairment | 0.87% | 0.69% | 0.69% | ||||||||
Total gross loans | 80,050 | 122,795 | $ 80,050 | $ 122,795 | $ 145,235 | ||||||
Total allowance to gross loans (as a percent) | 0.87% | 0.69% | 0.76% | ||||||||
Real estate loans: Construction | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 1,088 | 136 | $ 1,088 | $ 136 | $ 0 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions for (reduction in) loan losses | 942 | 952 | 136 | ||||||||
Balance, at the end of the period | 2,030 | 1,088 | 2,030 | 1,088 | 136 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||||||
General portfolio allocation | 2,030 | 1,088 | 2,030 | 1,088 | 136 | ||||||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 169,748 | 89,682 | $ 169,748 | $ 89,682 | $ 13,040 | ||||||
General reserves to total loans collectively evaluated for impairment | 1.20% | 1.21% | 1.04% | ||||||||
Total gross loans | 169,748 | 89,682 | $ 169,748 | $ 89,682 | $ 13,040 | ||||||
Total allowance to gross loans (as a percent) | 1.20% | 1.21% | 1.04% | ||||||||
Real estate loans: Land | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | 108 | 127 | $ 108 | $ 127 | $ 31 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions for (reduction in) loan losses | 125 | (19) | 96 | ||||||||
Balance, at the end of the period | 233 | 108 | 233 | 108 | 127 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||||||
General portfolio allocation | 233 | 108 | 233 | 108 | 127 | ||||||
Loans individually evaluated for impairment | 21 | 0 | $ 21 | $ 0 | $ 0 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 18,319 | 9,088 | $ 18,319 | $ 9,088 | $ 7,605 | ||||||
General reserves to total loans collectively evaluated for impairment | 1.27% | 1.19% | 1.67% | ||||||||
Total gross loans | 18,340 | 9,088 | $ 18,340 | $ 9,088 | $ 7,605 | ||||||
Total allowance to gross loans (as a percent) | 1.27% | 1.19% | 1.67% | ||||||||
Other loans | |||||||||||
Allocation of allowance as well as the activity in allowance | |||||||||||
Balance, at the beginning of the period | $ 24 | $ 34 | $ 24 | $ 34 | $ 52 | ||||||
Charge-offs | 0 | 0 | (18) | ||||||||
Recoveries | 1 | 19 | 142 | ||||||||
Provisions for (reduction in) loan losses | (2) | (29) | (142) | ||||||||
Balance, at the end of the period | 23 | 24 | 23 | 24 | 34 | ||||||
Other disclosures | |||||||||||
Specifically evaluated impaired loans | 0 | 0 | 0 | 0 | 0 | ||||||
General portfolio allocation | 23 | 24 | 23 | 24 | 34 | ||||||
Loans individually evaluated for impairment | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||||
Specific reserves to total loans individually evaluated for impairment | 0.00% | 0.00% | 0.00% | ||||||||
Loans collectively evaluated for impairment | 5,111 | 3,298 | $ 5,111 | $ 3,298 | $ 3,839 | ||||||
General reserves to total loans collectively evaluated for impairment | 0.45% | 0.73% | 0.89% | ||||||||
Total gross loans | $ 5,111 | $ 3,298 | $ 5,111 | $ 3,298 | $ 3,839 | ||||||
Total allowance to gross loans (as a percent) | 0.45% | 0.73% | 0.89% | ||||||||
Owner Occupied Commercial Real Estate Loans Commercial And Industrial Loans And Small Business Administration Loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Annualized Trailing Period One Considered For Determination Of Allowance For Loan Losses Factor | 72 months | ||||||||||
Annualized Trailing Period Two Considered For Determination Of Allowance For Loan Losses Factor | 36 months | ||||||||||
Annualized Trailing Period Three Considered For Determination Of Allowance For Loan Losses Factor | 24 months | ||||||||||
Annualized Trailing Period Four Considered For Determination Of Allowance For Loan Losses Factor | 12 months | ||||||||||
Annualized Trailing Period Five Considered For Determination Of Allowance For Loan Losses Factor | 6 months | ||||||||||
Period One Considered for Comparison of Allowance for Loan Losses Factor | 10 years | ||||||||||
Period Two Considered for Comparison of Allowance for Loan Losses Factor | 15 years |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate Owned | |||
Balance, beginning of year | $ 1,037 | $ 1,186 | $ 2,258 |
Additions / foreclosures | 450 | 645 | 996 |
Sales | (285) | (794) | (1,488) |
Loss on sale | 0 | 0 | (226) |
Write downs | (41) | 0 | (354) |
Balance, end of year | $ 1,161 | $ 1,037 | $ 1,186 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premises and Equipment | |||
Subtotal | $ 21,079 | $ 18,591 | |
Less: accumulated depreciation | (11,831) | (9,426) | |
Total | 9,248 | 9,165 | |
Depreciation and amortization expense | 2,432 | 2,198 | $ 1,948 |
Land | |||
Premises and Equipment | |||
Subtotal | 200 | 200 | |
Premises | |||
Premises and Equipment | |||
Subtotal | 3,528 | 3,340 | |
Leasehold improvements | |||
Premises and Equipment | |||
Subtotal | 5,901 | 5,491 | |
Furniture, fixtures and equipment | |||
Premises and Equipment | |||
Subtotal | 11,263 | 9,372 | |
Automobiles | |||
Premises and Equipment | |||
Subtotal | $ 187 | $ 188 |
Goodwill and Core Deposit Int68
Goodwill and Core Deposit Intangibles Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jan. 26, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | |
Estimated aggregate amortization expense | ||||
2,016 | 1,400 | |||
2,017 | 1,400 | |||
2,018 | 1,300 | |||
2,019 | 1,000 | |||
2,020 | $ 1,000 | |||
Independence Bank | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 27,882 |
Goodwill and Core Deposit Int69
Goodwill and Core Deposit Intangibles Goodwill Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance, beginning of year | $ 22,950 | $ 17,428 |
Goodwill acquired during the year | 27,882 | 5,522 |
Impairment losses | 0 | 0 |
Balance, end of year | 50,832 | 22,950 |
Accumulated impairment losses at end of year | $ 0 | $ 0 |
Goodwill and Core Deposit Int70
Goodwill and Core Deposit Intangibles CDI Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gross amount of CDI: | |||
Balance, beginning of year | $ 7,876 | $ 7,876 | $ 3,110 |
Additions due to acquisitions | 2,906 | 0 | 4,766 |
Balance, end of year | 10,782 | 7,876 | 7,876 |
Accumulated Amortization | |||
Balance, beginning of year | (2,262) | (1,248) | (484) |
Amortization | (1,350) | (1,014) | (764) |
Balance, end of year | (3,612) | (2,262) | (1,248) |
Net CDI, end of year | $ 7,170 | $ 5,614 | $ 6,628 |
Bank Owned Life Insurance (Deta
Bank Owned Life Insurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 26, 2015 | |
Investments, All Other Investments [Abstract] | ||||
Bank owned life insurance | $ 39,245 | $ 26,822 | ||
Income from bank owned life insurance, non-interest income | 1,300 | $ 914 | $ 758 | |
Increase in value | $ 12,400 | |||
Independence Bank | ||||
Business Acquisition [Line Items] | ||||
Bank owned life insurance acquired | $ 11,276 |
Qualified Affordable Housing 72
Qualified Affordable Housing Project Investments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)project | Dec. 31, 2014USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Original Investment Value | $ 10,000 | $ 10,000 |
Current Recorded Investment | 8,000 | 9,000 |
Unfunded Liability Obligation | 2,427 | 4,040 |
Tax Credits and Benefits | 1,736 | 1,275 |
Amortization of Investments | 1,000 | 750 |
Net Income Tax Benefit | $ (1,174) | (894) |
Number of projects | project | 2 | |
WNC Institutional Tax Credit Fund X, CA Series 11 L.P. | ||
Schedule of Equity Method Investments [Line Items] | ||
Original Investment Value | $ 5,000 | 5,000 |
Current Recorded Investment | 3,750 | 4,250 |
Unfunded Liability Obligation | 316 | 774 |
Tax Credits and Benefits | 917 | 887 |
Amortization of Investments | 500 | 500 |
Net Income Tax Benefit | (643) | (626) |
WNC Institutional Tax Credit Fund X, CA Series 12, L.P. | ||
Schedule of Equity Method Investments [Line Items] | ||
Original Investment Value | 5,000 | 5,000 |
Current Recorded Investment | 4,250 | 4,750 |
Unfunded Liability Obligation | 2,111 | 3,266 |
Tax Credits and Benefits | 819 | 388 |
Amortization of Investments | 500 | 250 |
Net Income Tax Benefit | $ (531) | $ (268) |
Deposit Accounts Deposit accoun
Deposit Accounts Deposit accounts and weighted average interest rates (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Transaction accounts | ||
Noninterest-bearing checking | $ 711,771 | $ 456,754 |
Interest-bearing checking | 134,999 | 131,635 |
Money market | 743,871 | 526,256 |
Savings | 83,507 | 74,508 |
Total transaction accounts | 1,674,148 | 1,189,153 |
Certificates of deposit accounts | ||
Less than 100,000 | 126,704 | 123,862 |
$100,000 through $250,000 | 166,397 | 163,819 |
Greater than $250,000 | 227,874 | 153,992 |
Total certificates of deposit accounts | 520,975 | 441,673 |
Total deposits | $ 2,195,123 | $ 1,630,826 |
Transaction accounts | ||
Noninterest-bearing checking (as a percent) | 0.00% | 0.00% |
Interest-bearing checking (as a percent) | 0.11% | 0.11% |
Money market (as a percent) | 0.35% | 0.32% |
Savings (as a percent) | 0.15% | 0.14% |
Total transaction accounts (as a percent) | 0.17% | 0.16% |
Certificates of deposit accounts | ||
Less than $100,000 (as a percent) | 0.79% | 0.91% |
$100,000 through $250,000 (as a percent) | 0.91% | 1.00% |
Greater than $250,000 (as a percent) | 0.72% | 0.76% |
Total certificates of deposit accounts (as a percent) | 0.80% | 0.89% |
Total deposits (as a percent) | 0.32% | 0.36% |
Deposit Accounts The aggregate
Deposit Accounts The aggregate annual maturities of certificates of deposit accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance | ||
Within 3 months | $ 79,798 | |
4 to 6 months | 131,699 | |
7 to 12 months | 188,046 | |
13 to 24 months | 108,194 | |
25 to 36 months | 8,365 | |
37 to 60 months | 4,237 | |
Over 60 months | 636 | |
Total certificates of deposit accounts | $ 520,975 | $ 441,673 |
Weighted Average Interest Rate | ||
Within 3 months (as a percent) | 0.55% | |
4 to 6 months (as a percent) | 0.81% | |
7 to 12 months (as a percent) | 0.78% | |
13 to 24 months (as a percent) | 0.98% | |
25 to 36 months (as a percent) | 1.09% | |
37 to 60 months (as a percent) | 1.10% | |
Over 60 months (as a percent) | 0.97% | |
Total certificates of deposit accounts (as a percent) | 0.80% | 0.89% |
Deposit Accounts Interest expen
Deposit Accounts Interest expense on deposit accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest expense on deposit accounts | |||
Checking accounts | $ 165,000 | $ 161,000 | $ 110,000 |
Savings | 141,000 | 110,000 | 103,000 |
Money market accounts | 2,426,000 | 1,443,000 | 1,043,000 |
Certificates of deposit accounts | 3,898,000 | 3,323,000 | 2,809,000 |
Total | 6,630,000 | 5,037,000 | $ 4,065,000 |
Accrued interest on deposits | $ 124,195 | $ 136,000 |
Federal Home Loan Bank Advanc76
Federal Home Loan Bank Advances and Other Borrowings (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)bank | Dec. 31, 2014USD ($) | |
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 | $ 1,200,000,000 | |
Overnight FHLB advances | 98,000,000 | $ 20,000,000 |
FHLB advances | 148,000,000 | 70,000,000 |
Maximum amount outstanding in respect of term advances | 50,000,000 | 50,000,000 |
Aggregate principal balance of real estate loans used to collateralize FHLB advances | 620,000,000 | |
Federal Home Loan Bank Stock | 11,400,000 | |
Additional available advances | 385,000,000 | |
Estimated fair value of MBS used to secure outstanding borrowings | 34,000,000 | $ 50,000,000 |
Securities Sold under Agreements to Repurchase | $ 28,500,000 | |
Weighted average rate for securities sold under agreement to repurchase (as a percent) | 0.39% | 0.26% |
Credit facilities | Citigroup | ||
Federal Home Loan Bank Advances and Other Borrowings | ||
Balance outstanding at end of year | $ 18,500,000 | $ 18,500,000 |
Credit facilities | Barclays Bank | ||
Federal Home Loan Bank Advances and 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 | 19,600,000 | |
Securities Sold under Agreements to Repurchase | $ 28,500,000 | |
Weighted average rate for securities sold under agreement to repurchase (as a percent) | 0.03% | |
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 | $ 120,000,000 | |
Number of correspondent banks | bank | 7 | |
Amount outstanding | $ 0 | $ 1,500,000 |
Federal Reserve discount window | ||
Federal Home Loan Bank Advances and Other Borrowings | ||
Unused facility | $ 3,300,000 |
Federal Home Loan Bank Advanc77
Federal Home Loan Bank Advances and Other Borrowings Activities in advances from the FHLB (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Activities in advances from the FHLB | ||
Average balance outstanding | $ 139,542 | $ 70,296 |
Maximum amount outstanding at any month-end during the year | 340,000 | 210,000 |
Balance outstanding at end of year | $ 148,000 | $ 70,000 |
Weighted average rate for securities sold under agreement to repurchase (as a percent) | 0.39% | 0.26% |
Federal Home Loan Bank Advanc78
Federal Home Loan Bank Advances and Other Borrowings Activities in other borrowings (Details) - Other Borrowings - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Average balance outstanding | $ 48,490 | $ 47,398 |
Maximum amount outstanding at any month-end during the year | 49,925 | 49,712 |
Balance outstanding at end of year | $ 48,125 | $ 46,643 |
Weighted average interest rate during the year (as a percent) | 1.95% | 2.00% |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | Mar. 25, 2004 | Aug. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
PPBI Trust I | ||||
Debt Instrument [Line Items] | ||||
Floating Rate Trust Preferred Securities issue amount | $ 10,000,000 | |||
Notes | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 60,000,000 | |||
Contribution of net proceeds from the Private Placement to the Bank to support general corporate purposes | $ 50,000,000 | |||
Fixed interest rate (as a percent) | 5.75% | |||
Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
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) | 3.07% | 2.98% | ||
Subordinated Debentures | PPBI Trust I | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 10,310,000 | |||
Minority interest purchased (as a percent) | 3.00% | |||
Amount of minority interest purchased | $ 310,000 |
Subordinated Debentures Activit
Subordinated Debentures Activities for our subordinated debentures (Details) - Subordinated Debentures - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Average balance outstanding | $ 70,310 | $ 30,858 |
Maximum amount outstanding at any month-end during the year | 70,310 | 70,310 |
Balance outstanding at end of year | $ 70,310 | $ 70,310 |
Weighted average interest rate during the year (as a percent) | 5.36% | 5.00% |
Income Taxes Total income tax p
Income Taxes Total income tax provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current income tax provision: | |||||||||||
Federal | $ 12,460 | $ 9,628 | $ 7,008 | ||||||||
State | 4,144 | 3,466 | 2,329 | ||||||||
Total current income tax provision | 16,604 | 13,094 | 9,337 | ||||||||
Deferred income tax provision (benefit): | |||||||||||
Federal | (887) | (1,789) | (3,129) | ||||||||
State | (508) | (586) | (621) | ||||||||
Total deferred income tax provision (benefit) | (1,395) | (2,375) | (3,750) | ||||||||
Total income tax provision | $ 4,750 | $ 4,801 | $ 4,601 | $ 1,056 | $ 2,889 | $ 3,410 | $ 2,855 | $ 1,565 | $ 15,209 | $ 10,719 | $ 5,587 |
Income Taxes Reconciliation fro
Income Taxes Reconciliation from statutory federal income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation from statutory federal income taxes to the company's effective income taxes | |||||||||||
Statutory federal income tax provision | $ 14,253 | $ 9,459 | $ 5,103 | ||||||||
California franchise tax, net of federal income tax effect | 2,886 | 1,926 | 1,027 | ||||||||
Cash surrender life insurance | (483) | (324) | (277) | ||||||||
Tax exempt interest | (742) | (614) | (718) | ||||||||
Merger costs | 447 | 410 | 164 | ||||||||
LIHTC investments | (871) | (728) | (237) | ||||||||
Other | (281) | 590 | 525 | ||||||||
Total income tax provision | $ 4,750 | $ 4,801 | $ 4,601 | $ 1,056 | $ 2,889 | $ 3,410 | $ 2,855 | $ 1,565 | $ 15,209 | $ 10,719 | $ 5,587 |
Income Taxes Deferred tax asset
Income Taxes Deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | |||
Accrued expenses | $ 1,717 | $ 1,802 | $ 891 |
Net operating loss | 5,192 | 2,703 | 3,353 |
Allowance for loan losses, net of bad debt charge-offs | 6,252 | 5,158 | 3,336 |
Deferred compensation | 2,547 | 1,750 | 1,896 |
State taxes | 1,451 | 1,238 | 858 |
Depreciation | 651 | 321 | (216) |
Other-than-temporary impairment | 0 | 0 | 684 |
Stock based compensation | 639 | 313 | 273 |
Total deferred tax assets | 18,449 | 13,285 | 11,075 |
Deferred tax liabilities: | |||
Deferred FDIC gain | (1,656) | (1,731) | (1,944) |
Core deposit intangibles | (2,266) | (1,518) | (1,813) |
Unrealized (gain) loss on available for sale securities | (231) | (362) | 2,160 |
Other | (2,785) | (291) | (1,001) |
Total deferred tax liabilities | (6,938) | (3,902) | (2,598) |
Net deferred tax asset | $ 11,511 | $ 9,383 | $ 8,477 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
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 | $ 3,600,000 |
Federal income tax purpose | |
Income Taxes | |
Net operating loss carryforward | 13,000,000 |
California franchise tax purpose | |
Income Taxes | |
Net operating loss carryforward | $ 10,100,000 |
Commitments, Contingencies an85
Commitments, Contingencies and Concentrations of Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employment Agreements | |||
Rental expense | $ 3.8 | $ 2.8 | $ 2.4 |
Chief Banking Officer | Employment Agreements | |||
Employment Agreements | |||
Term of agreements (in years) | 3 years | ||
CEO | Employment Agreements | |||
Employment Agreements | |||
Term of agreements (in years) | 3 years | ||
Chief Credit Officer | Employment Agreements | |||
Employment Agreements | |||
Term of agreements (in years) | 3 years | ||
Chief Financial Officer | Employment Agreements | |||
Employment Agreements | |||
Term of agreements (in years) | 3 years |
Commitments, Contingencies an86
Commitments, Contingencies and Concentrations of Risk Minimum annual lease payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Lease Commitments | |
2,016 | $ 3,658 |
2,017 | 3,095 |
2,018 | 2,557 |
2,019 | 2,351 |
2,020 | 711 |
Thereafter | 400 |
Total | $ 12,772 |
Benefit Plans 401(k) Plan (Deta
Benefit Plans 401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
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 | $ 769 | $ 540 | $ 401 |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution, as a percentage of compensation | 1.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution, as a percentage of compensation | 50.00% |
Benefit Plans Long-Term Incenti
Benefit Plans Long-Term Incentive Plan (Details) - shares | 12 Months Ended | |||
Dec. 31, 2015 | May. 31, 2015 | May. 31, 2014 | May. 31, 2004 | |
2004 Long-Term Incentive Plan | ||||
Share based plans | ||||
Shares authorized | 525,500 | |||
Term of plan (in years) | 10 years | |||
Vesting percentage per year | 33.30% | |||
Number of options outstanding (in shares) | 318,355 | |||
Granted (in shares) | 0 | |||
2012 Plan | ||||
Share based plans | ||||
Shares authorized | 620,000 | 800,000 | ||
Term of plan (in years) | 10 years | |||
Vesting percentage per year | 33.30% | |||
Number of options outstanding (in shares) | 740,731 | |||
Granted (in shares) | 816,105 | |||
2014 Plan | ||||
Share based plans | ||||
Shares authorized | 1,420,000 |
Benefit Plans Option Plans (Det
Benefit Plans Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Additional disclosure | |||
Aggregate intrinsic value, outstanding | $ 10,489 | ||
Aggregate Intrinsic value, vested and expected to vest | 7,719 | ||
Aggregate Intrinsic value, exercisable | 7,719 | ||
Intrinsic value | 60 | $ 536 | $ 277 |
Compensation expense | $ 905 | $ 514 | $ 943 |
Stock option | |||
Number of Stock Options Outstanding | |||
Options outstanding at the beginning of the year (in shares) | 925,084 | ||
Granted (in shares) | 249,000 | ||
Exercised (in shares) | (8,066) | ||
Forfeited and expired (in shares) | (106,932) | ||
Options outstanding at the end of the year (in shares) | 1,059,086 | 925,084 | |
Vested at the end of the year (in shares) | 635,069 | ||
Exercisable at the end of the year (in shares) | 635,069 | ||
Weighted Average Exercise Price Per Share | |||
Options outstanding at the beginning of the year (in dollars per share) | $ 10.41 | ||
Granted (in dollars per share) | 15.16 | ||
Exercised (in dollars per share) | 8.70 | ||
Forfeited and expired (in dollars per share) | 12.31 | ||
Options outstanding at the end of the year (in dollars per share) | 11.35 | $ 10.41 | |
Vested at the end of the year (in dollars per shares) | 9.09 | ||
Options exercisable at the end of the year (in dollars per share) | $ 9.09 | ||
Weighted average remaining contractual life | |||
Outstanding at the end of the year | 6 years 3 months 18 days | ||
Vested at the end of the year | 4 years 10 months 24 days | ||
Exercisable at the end of the year | 4 years 10 months 24 days | ||
Additional disclosure | |||
Unrecognized compensation expense | $ 1,000 |
Benefit Plans Black-Scholes mod
Benefit Plans Black-Scholes model (Details) - Stock option - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share based plans | |||
Expected volatility (as a percent) | 29.47% | ||
Expected term (in years) | 6 years | 6 years | 10 years |
Risk free rate (as a percent) | 1.39% | ||
Weighted-average grant date fair value (in dollars per share) | $ 4.73 | ||
Minimum | |||
Share based plans | |||
Expected volatility (as a percent) | 16.20% | 22.20% | |
Risk free rate (as a percent) | 1.81% | 1.78% | |
Weighted-average grant date fair value (in dollars per share) | $ 3.28 | $ 3.93 | |
Maximum | |||
Share based plans | |||
Expected volatility (as a percent) | 18.50% | 25.82% | |
Risk free rate (as a percent) | 2.10% | 2.67% | |
Weighted-average grant date fair value (in dollars per share) | $ 3.67 | $ 5.87 |
Benefit Plans Restricted Stock
Benefit Plans Restricted Stock (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Weighted Average Grant-Date Fair Value per share | ||||
Compensation expense | $ 905,000 | $ 514,000 | $ 943,000 | |
Restricted Stock | ||||
Shares | ||||
Unvested at the beginning of the year (in shares) | 60,000 | 0 | 60,000 | |
Granted (in shares) | 60,000 | |||
Vested (in shares) | 0 | |||
Unvested at the end of the year (in shares) | 60,000 | 0 | ||
Weighted Average Grant-Date Fair Value per share | ||||
Unvested at the beginning of the year (in dollars per share) | $ 15.46 | $ 0 | $ 15.46 | |
Granted (in dollars per share) | 15.46 | |||
Vested (in dollars per share) | 0 | |||
Unvested at the end of the year (in dollars per share) | $ 15.46 | $ 0 | ||
Compensation expense | $ 260,000 | |||
Grant date fair value | $ 927,500 | |||
Unrecognized compensation expense | $ 689,000 |
Benefit Plans Other Benefits (D
Benefit Plans Other Benefits (Details) - Retirement benefit plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Executive Officer | |||
Benefit Plans | |||
Amounts expensed | $ 555,000 | $ 461,000 | $ 255,724 |
Amounts recorded as liability | $ 5,400,000 | $ 4,000,000 | $ 4,400,000 |
Director | |||
Benefit Plans | |||
Variable rate basis | prime | ||
Basis spread (as a percent) | 1.00% | ||
Executive Officers And Directors | |||
Benefit Plans | |||
Amounts expensed | $ 4,000 |
Financial Instruments with Of93
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Undisbursed loans and unused lines of credit | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Allowance for credit losses | $ 603 | $ 397 |
Commitments to extend credit | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments with off-balance sheet risk | 415,000 | $ 355,000 |
Undisbursed Commitments For C&I Loans | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments with off-balance sheet risk | $ 200,000 |
Fair Value of Financial Instr94
Fair Value of Financial Instruments Fair value estimates (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Securities available for sale | $ 280,273 | $ 201,638 |
Accrued interest receivable | 9,315 | 7,131 |
Liabilities: | ||
FHLB advances | 148,000 | 70,000 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 78,417 | 110,925 |
Securities available for sale | 0 | 0 |
Federal Reserve Bank and FHLB stock, at cost | 0 | 0 |
Loans held for sale, net | 0 | |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 9,315 | 7,131 |
Liabilities: | ||
Deposit accounts | 1,674,148 | 1,216,847 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 206 | 209 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 280,273 | 201,638 |
Federal Reserve Bank and FHLB stock, at cost | 22,292 | 17,067 |
Loans held for sale, net | 9,507 | |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposit accounts | 521,291 | 519,898 |
FHLB advances | 148,036 | 70,025 |
Other borrowings | 49,156 | 48,312 |
Subordinated debentures | 68,675 | 33,456 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Federal Reserve Bank and FHLB stock, at cost | 0 | 0 |
Loans held for sale, net | 0 | |
Loans held for investment, net | 2,244,936 | 2,116,719 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposit accounts | 0 | 0 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 78,417 | 110,925 |
Securities available for sale | 280,273 | 201,638 |
Federal Reserve Bank and FHLB stock, at cost | 22,292 | 17,067 |
Loans held for sale, net | 8,565 | |
Loans held for investment, net | 2,236,998 | 1,616,422 |
Accrued interest receivable | 9,315 | 7,131 |
Liabilities: | ||
Deposit accounts | 2,195,123 | 1,630,826 |
FHLB advances | 148,000 | 70,000 |
Other borrowings | 48,125 | 46,643 |
Subordinated debentures | 70,310 | 70,310 |
Accrued interest payable | 206 | 209 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 78,417 | 110,925 |
Securities available for sale | 280,273 | 201,638 |
Federal Reserve Bank and FHLB stock, at cost | 22,292 | 17,067 |
Loans held for sale, net | 9,507 | |
Loans held for investment, net | 2,244,936 | 2,116,719 |
Accrued interest receivable | 9,315 | 7,131 |
Liabilities: | ||
Deposit accounts | 2,195,439 | 1,736,745 |
FHLB advances | 148,036 | 70,025 |
Other borrowings | 49,156 | 48,312 |
Subordinated debentures | 68,675 | 33,456 |
Accrued interest payable | $ 206 | $ 209 |
Fair Value of Financial Instr95
Fair Value of Financial Instruments Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures | ||
Total securities available for sale: | $ 289,845 | |
Recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 0 | $ 0 |
Recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 280,273 | 201,638 |
Recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 0 | 0 |
Municipal bonds | Recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 0 | 0 |
Municipal bonds | Recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 130,245 | 89,661 |
Municipal bonds | Recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 0 | 0 |
Collateralized mortgage obligation | Recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 0 | 0 |
Collateralized mortgage obligation | Recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 24,543 | 6,862 |
Collateralized mortgage obligation | Recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 0 | 0 |
Mortgage-backed securities | Recurring basis | Level 1 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 0 | 0 |
Mortgage-backed securities | Recurring basis | Level 2 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 125,485 | 105,115 |
Mortgage-backed securities | Recurring basis | Level 3 | ||
Fair Value Disclosures | ||
Total securities available for sale: | 0 | 0 |
Estimated Fair Value | Recurring basis | ||
Fair Value Disclosures | ||
Total securities available for sale: | 280,273 | 201,638 |
Estimated Fair Value | Municipal bonds | Recurring basis | ||
Fair Value Disclosures | ||
Total securities available for sale: | 130,245 | 89,661 |
Estimated Fair Value | Collateralized mortgage obligation | Recurring basis | ||
Fair Value Disclosures | ||
Total securities available for sale: | 24,543 | 6,862 |
Estimated Fair Value | Mortgage-backed securities | Recurring basis | ||
Fair Value Disclosures | ||
Total securities available for sale: | $ 125,485 | $ 105,115 |
Fair Value of Financial Instr96
Fair Value of Financial Instruments Financial instruments measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures | ||||
Other real estate owned | $ 1,161 | $ 1,037 | $ 1,186 | $ 2,258 |
Non-recurring basis | Level 1 | ||||
Fair Value Disclosures | ||||
Collateral dependent impaired loans | 0 | 0 | ||
Other real estate owned | 0 | 0 | ||
Total securities available for sale: | 0 | 0 | ||
Non-recurring basis | Level 2 | ||||
Fair Value Disclosures | ||||
Collateral dependent impaired loans | 0 | 0 | ||
Other real estate owned | 0 | 0 | ||
Total securities available for sale: | 0 | 0 | ||
Non-recurring basis | Level 3 | ||||
Fair Value Disclosures | ||||
Collateral dependent impaired loans | 1,322 | 921 | ||
Other real estate owned | 1,161 | 1,037 | ||
Total securities available for sale: | 2,483 | 1,958 | ||
Estimated Fair Value | Non-recurring basis | ||||
Fair Value Disclosures | ||||
Collateral dependent impaired loans | 1,322 | 921 | ||
Other real estate owned | 1,161 | 1,037 | ||
Total securities available for sale: | $ 2,483 | $ 1,958 |
Fair Value of Financial Instr97
Fair Value of Financial Instruments Quantitative information about level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quantitative information about level 3 of fair value measurements for financial instruments | ||||
Other real estate owned | $ 1,161 | $ 1,037 | $ 1,186 | $ 2,258 |
Business loans: Franchise loans | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | |||
Real estate loans: Commercial non-owner occupied | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | ||
Real estate loans: One-to-four family | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | ||
Real estate loans: Land | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | ||
Non-recurring basis | Level 3 | ||||
Quantitative information about level 3 of fair value measurements for financial instruments | ||||
Collateral dependent impaired loans | $ 1,322 | $ 921 | ||
Other real estate owned | 1,161 | 1,037 | ||
Non-recurring basis | Level 3 | Business loans: Commercial and industrial | ||||
Quantitative information about level 3 of fair value measurements for financial instruments | ||||
Collateral dependent impaired loans | $ 313 | $ 388 | ||
Non-recurring basis | Level 3 | Business loans: Commercial and industrial | Collateral Analysis Valuation Technique | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 7.50% | |||
Management adjustment to reflect current conditions and selling costs | 6 years | |||
Non-recurring basis | Level 3 | Business loans: Commercial and industrial | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | |||
Non-recurring basis | Level 3 | Business loans: Commercial and industrial | Collateral Analysis Valuation Technique | Maximum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | |||
Non-recurring basis | Level 3 | Business loans: Franchise loans | ||||
Quantitative information about level 3 of fair value measurements for financial instruments | ||||
Collateral dependent impaired loans | $ 168 | |||
Non-recurring basis | Level 3 | Business loans: Franchise loans | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 5.70% | |||
Management adjustment to reflect current conditions and selling costs | 7 years | |||
Non-recurring basis | Level 3 | Business loans: Franchise loans | Collateral Analysis Valuation Technique | Maximum | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 6.70% | |||
Management adjustment to reflect current conditions and selling costs | 8 years | |||
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | |||
Non-recurring basis | Level 3 | Business loans: Commercial owner occupied | ||||
Quantitative information about level 3 of fair value measurements for financial instruments | ||||
Collateral dependent impaired loans | $ 536 | |||
Non-recurring basis | Level 3 | Business loans: Commercial owner occupied | Collateral Analysis Valuation Technique | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 7.75% | 6.75% | ||
Management adjustment to reflect current conditions and selling costs | 7 years | 7 years | ||
Non-recurring basis | Level 3 | Business loans: Commercial owner occupied | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 0.00% | 0.00% | ||
Non-recurring basis | Level 3 | Business loans: Commercial owner occupied | Collateral Analysis Valuation Technique | Maximum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | 10.00% | ||
Non-recurring basis | Level 3 | Real estate loans: Commercial non-owner occupied | ||||
Quantitative information about level 3 of fair value measurements for financial instruments | ||||
Collateral dependent impaired loans | $ 214 | $ 479 | ||
Non-recurring basis | Level 3 | Real estate loans: Commercial non-owner occupied | Collateral Analysis Valuation Technique | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 6.75% | |||
Non-recurring basis | Level 3 | Real estate loans: Commercial non-owner occupied | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 7.00% | |||
Management adjustment to reflect current conditions and selling costs | 2 years | 2 years | ||
Non-recurring basis | Level 3 | Real estate loans: Commercial non-owner occupied | Collateral Analysis Valuation Technique | Maximum | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 7.50% | |||
Management adjustment to reflect current conditions and selling costs | 12 years | 12 years | ||
Management adjustment to reflect current conditions and selling costs (as a percent) | 15.00% | 15.00% | ||
Non-recurring basis | Level 3 | Real estate loans: One-to-four family | ||||
Quantitative information about level 3 of fair value measurements for financial instruments | ||||
Collateral dependent impaired loans | $ 70 | $ 54 | ||
Other real estate owned | $ 0 | $ 285 | ||
Non-recurring basis | Level 3 | Real estate loans: One-to-four family | Collateral Analysis Valuation Technique | Minimum | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 9.00% | 8.00% | ||
Management adjustment to reflect current conditions and selling costs | 5 years | 5 years | ||
Non-recurring basis | Level 3 | Real estate loans: One-to-four family | Collateral Analysis Valuation Technique | Maximum | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 15.00% | 15.00% | ||
Management adjustment to reflect current conditions and selling costs | 16 years | 16 years | ||
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | 10.00% | ||
Non-recurring basis | Level 3 | Real estate loans: Land | ||||
Quantitative information about level 3 of fair value measurements for financial instruments | ||||
Collateral dependent impaired loans | $ 21 | |||
Other real estate owned | $ 1,161 | $ 752 | ||
Non-recurring basis | Level 3 | Real estate loans: Land | Collateral Analysis Valuation Technique | ||||
Unobservable Inputs | ||||
Rate (as a percent) | 13.00% | |||
Management adjustment to reflect current conditions and selling costs | 15 years | |||
Non-recurring basis | Level 3 | Real estate loans: Land | Collateral Analysis Valuation Technique | Maximum | ||||
Unobservable Inputs | ||||
Management adjustment to reflect current conditions and selling costs (as a percent) | 10.00% | 10.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income/(Loss) (numerator) | |||||||||||
Net income applicable to earnings per share | $ 25,515 | $ 16,616 | $ 8,993 | ||||||||
Basic earnings per share: Income available to common stockholders | $ 8,065 | $ 7,837 | $ 7,825 | $ 1,789 | $ 3,891 | $ 5,450 | $ 4,643 | $ 2,632 | 25,515 | 16,616 | 8,993 |
Diluted earnings per share: Income available to common stockholders | $ 25,515 | $ 16,616 | $ 8,993 | ||||||||
Shares (denominator) | |||||||||||
Basic income available to common stockholders (in shares) | 21,156,668 | 17,046,660 | 15,798,885 | ||||||||
Effect of dilutive stock options (in shares) | 332,030 | 297,317 | 811,069 | ||||||||
Diluted income available to common stockholders plus assumed conversions (in shares) | 21,488,698 | 17,343,977 | 16,609,954 | ||||||||
Per Share Amount | |||||||||||
Basic income available to common stockholders (in dollars per share) | $ 0.38 | $ 0.36 | $ 0.36 | $ 0.09 | $ 0.23 | $ 0.32 | $ 0.28 | $ 0.15 | $ 1.21 | $ 0.97 | $ 0.57 |
Diluted income available to common stockholders plus assumed conversions (in dollars per share) | $ 0.37 | $ 0.36 | $ 0.36 | $ 0.09 | $ 0.23 | $ 0.31 | $ 0.27 | $ 0.15 | $ 1.19 | $ 0.96 | $ 0.54 |
Related Parties (Details)
Related Parties (Details) | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) |
Related Party Transaction [Line Items] | ||
Related party deposits | $ 312,000,000 | $ 282,000,000 |
Executive Officers And Directors | ||
Related Party Transaction [Line Items] | ||
Number of related party loans | loan | 1 | |
Loan receivable | $ 2,400,000 | 0 |
Associa | ||
Related Party Transaction [Line Items] | ||
Related party deposits | $ 310,000,000 | $ 280,000,000 |
Quarterly Results of Operati100
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 31,911 | $ 29,747 | $ 30,071 | $ 26,626 | $ 22,536 | $ 21,333 | $ 19,314 | $ 18,156 | $ 118,356 | $ 81,339 | $ 63,800 |
Interest expense | 3,074 | 3,051 | 2,978 | 2,952 | 2,770 | 2,014 | 1,533 | 1,387 | 12,057 | 7,704 | 5,356 |
Provision for Loan and Lease Losses | 1,700 | 1,062 | 1,833 | 1,830 | 1,421 | 1,284 | 1,030 | 949 | 6,425 | 4,684 | 1,860 |
Noninterest income | 4,217 | 4,378 | 4,380 | 1,470 | 4,903 | 4,168 | 2,388 | 1,918 | 14,441 | 13,377 | 8,811 |
Noninterest expense | 18,539 | 17,374 | 17,214 | 20,469 | 16,468 | 13,343 | 11,641 | 13,541 | 73,591 | 54,993 | 50,815 |
Income tax provision | 4,750 | 4,801 | 4,601 | 1,056 | 2,889 | 3,410 | 2,855 | 1,565 | 15,209 | 10,719 | 5,587 |
NET INCOME | $ 8,065 | $ 7,837 | $ 7,825 | $ 1,789 | $ 3,891 | $ 5,450 | $ 4,643 | $ 2,632 | $ 25,515 | $ 16,616 | $ 8,993 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.38 | $ 0.36 | $ 0.36 | $ 0.09 | $ 0.23 | $ 0.32 | $ 0.28 | $ 0.15 | $ 1.21 | $ 0.97 | $ 0.57 |
Diluted (in dollars per share) | $ 0.37 | $ 0.36 | $ 0.36 | $ 0.09 | $ 0.23 | $ 0.31 | $ 0.27 | $ 0.15 | $ 1.19 | $ 0.96 | $ 0.54 |
Parent Company Financial Inf101
Parent Company Financial Information STATEMENTS OF FINANCIAL CONDITION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||
Percentage of capital stock of the Bank held | 100.00% | |||
Assets: | ||||
Deferred income taxes | $ 11,511 | $ 9,383 | $ 8,477 | |
Other assets | 24,005 | 10,743 | ||
TOTAL ASSETS | 2,790,646 | 2,038,897 | ||
Liabilities: | ||||
Subordinated debentures | 70,310 | 70,310 | ||
Accrued expenses and other liabilities | 30,108 | 21,526 | ||
Total liabilities | 2,491,666 | 1,839,305 | ||
Total Stockholders’ Equity | 298,980 | 199,592 | $ 175,226 | $ 134,517 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,790,646 | 2,038,897 | ||
Corporation | ||||
Assets: | ||||
Cash and cash equivalents | 3,412 | 18,724 | ||
Deferred income taxes | 0 | 3,566 | ||
Investment in subsidiaries | 359,143 | 247,669 | ||
Other assets | 8,502 | 1,544 | ||
TOTAL ASSETS | 371,057 | 271,503 | ||
Liabilities: | ||||
Subordinated debentures | 70,310 | 70,310 | ||
Accrued expenses and other liabilities | 1,767 | 1,601 | ||
Total liabilities | 72,077 | 71,911 | ||
Total Stockholders’ Equity | 298,980 | 199,592 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 371,057 | $ 271,503 |
Parent Company Financial Inf102
Parent Company Financial Information STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income: | |||||||||||
Interest income | $ 31,911 | $ 29,747 | $ 30,071 | $ 26,626 | $ 22,536 | $ 21,333 | $ 19,314 | $ 18,156 | $ 118,356 | $ 81,339 | $ 63,800 |
Noninterest income | 4,217 | 4,378 | 4,380 | 1,470 | 4,903 | 4,168 | 2,388 | 1,918 | 14,441 | 13,377 | 8,811 |
Expense: | |||||||||||
Interest expense | 3,074 | 3,051 | 2,978 | 2,952 | 2,770 | 2,014 | 1,533 | 1,387 | 12,057 | 7,704 | 5,356 |
Noninterest expense | 18,539 | 17,374 | 17,214 | 20,469 | 16,468 | 13,343 | 11,641 | 13,541 | 73,591 | 54,993 | 50,815 |
INCOME BEFORE INCOME TAX | 40,724 | 27,335 | 14,580 | ||||||||
INCOME TAX | 4,750 | 4,801 | 4,601 | 1,056 | 2,889 | 3,410 | 2,855 | 1,565 | 15,209 | 10,719 | 5,587 |
NET INCOME | $ 8,065 | $ 7,837 | $ 7,825 | $ 1,789 | $ 3,891 | $ 5,450 | $ 4,643 | $ 2,632 | 25,515 | 16,616 | 8,993 |
Corporation | |||||||||||
Income: | |||||||||||
Interest income | 27 | 36 | 20 | ||||||||
Noninterest income | 0 | 2 | 3 | ||||||||
Total income | 27 | 38 | 23 | ||||||||
Expense: | |||||||||||
Interest expense | 3,937 | 1,543 | 307 | ||||||||
Noninterest expense | 2,831 | 1,874 | 2,141 | ||||||||
Total expense | 6,768 | 3,417 | 2,448 | ||||||||
INCOME BEFORE INCOME TAX | (6,741) | (3,379) | (2,425) | ||||||||
INCOME TAX | (2,783) | (1,275) | (827) | ||||||||
Net loss (parent only) | (3,958) | (2,104) | (1,598) | ||||||||
Equity in net earnings of subsidiaries | 29,473 | 18,720 | 10,591 | ||||||||
NET INCOME | $ 25,515 | $ 16,616 | $ 8,993 |
Parent Company Financial Inf103
Parent Company Financial Information SUMMARY STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Parent Company Financial Information | |||||||||||
Net income | $ 8,065 | $ 7,837 | $ 7,825 | $ 1,789 | $ 3,891 | $ 5,450 | $ 4,643 | $ 2,632 | $ 25,515 | $ 16,616 | $ 8,993 |
Adjustments to reconcile net income to cash used in operating activities: | |||||||||||
Share-based compensation expense | 1,165 | 514 | 943 | ||||||||
Increase (decrease) in accrued expenses and other liabilities | 6,786 | 2,764 | 9,683 | ||||||||
Net cash provided by operating activities | 25,248 | 13,287 | 15,504 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of common stock, net of issuance cost | 0 | 0 | 4,560 | ||||||||
Repurchase of common stock | (116) | (5,638) | (59) | ||||||||
Proceeds from issuance of subordinated debentures | 0 | 58,834 | 0 | ||||||||
Net cash provided (used in) financing activities | 275,103 | 222,938 | (62,930) | ||||||||
Net increase (decrease) in cash and cash equivalents | (32,508) | (15,888) | 67,461 | ||||||||
Cash and cash equivalents, beginning of year | 110,925 | 126,813 | 110,925 | 126,813 | 59,352 | ||||||
Cash and cash equivalents, end of year | 78,417 | 110,925 | 78,417 | 110,925 | 126,813 | ||||||
Corporation | |||||||||||
Parent Company Financial Information | |||||||||||
Net income | 25,515 | 16,616 | 8,993 | ||||||||
Adjustments to reconcile net income to cash used in operating activities: | |||||||||||
Share-based compensation expense | 1,165 | 514 | 943 | ||||||||
Equity in undistributed earnings of subsidiaries and dividends from the bank | (29,473) | (16,248) | (10,591) | ||||||||
Increase (decrease) in accrued expenses and other liabilities | 166 | 1,560 | (39) | ||||||||
Increase (decrease) in current and deferred taxes | 3,566 | (286) | 1,153 | ||||||||
Decrease (increase) in other assets | (6,893) | 232 | (504) | ||||||||
Net cash provided by operating activities | (5,954) | 2,388 | (45) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of common stock, net of issuance cost | 0 | 0 | 4,560 | ||||||||
Repurchase of common stock | (116) | (5,638) | (59) | ||||||||
Proceeds from exercise of options and warrants | 758 | 267 | 90 | ||||||||
Capital contribution to Bank | (10,000) | (40,000) | (8,700) | ||||||||
Proceeds from issuance of subordinated debentures | 0 | 58,834 | 0 | ||||||||
Net cash provided (used in) financing activities | (9,358) | 13,463 | (4,109) | ||||||||
Net increase (decrease) in cash and cash equivalents | (15,312) | 15,851 | (4,154) | ||||||||
Cash and cash equivalents, beginning of year | $ 18,724 | $ 2,873 | 18,724 | 2,873 | 7,027 | ||||||
Cash and cash equivalents, end of year | $ 3,412 | $ 18,724 | $ 3,412 | $ 18,724 | $ 2,873 |
Acquisitions Independence Bank
Acquisitions Independence Bank Acquisition - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 26, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | |
Independence Bank | ||||
Business Acquisition [Line Items] | ||||
Consideration paid | $ 79,777 | |||
Cash consideration | 6,100 | |||
Cash consideration for holders of options and warrants | 1,500 | |||
Equity interests issued | $ 1,300 | |||
Number of shares of common stock issued as consideration | 4,480,645 | |||
Value of shares of common stock to be issued | $ 70,900 | |||
Share price (in dollars per share) | $ 15.83 | |||
Goodwill | $ 27,882 |
Acquisitions Independence Ba105
Acquisitions Independence Bank Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 26, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | |
Independence Bank | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 10,486 | |||
Investment securities | 56,121 | |||
Loans | 332,893 | |||
Allowance for loan losses | 0 | |||
Deferred income taxes | 4,794 | |||
Bank owned life insurance | 11,276 | |||
Core deposit intangible | 2,903 | |||
Other assets | 4,536 | |||
Total assets acquired | 423,009 | |||
Deposits | 336,018 | |||
FHLB advances | 33,300 | |||
Other liabilities | 1,796 | |||
Total liabilities assumed | 371,114 | |||
Excess of assets acquired over liabilities assumed | 51,895 | |||
Consideration paid | 79,777 | |||
Goodwill | 27,882 | |||
As initially reported | Independence Bank | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 10,486 | |||
Investment securities | 56,503 | |||
Loans | 339,502 | |||
Allowance for loan losses | (3,301) | |||
Deferred income taxes | 5,266 | |||
Bank owned life insurance | 11,276 | |||
Core deposit intangible | 904 | |||
Other assets | 3,756 | |||
Total assets acquired | 424,392 | |||
Deposits | 335,685 | |||
FHLB advances | 33,300 | |||
Other liabilities | 1,916 | |||
Total liabilities assumed | 370,901 | |||
Excess of assets acquired over liabilities assumed | 53,491 | |||
Fair Value Adjustments | Independence Bank | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Investment securities | (382) | |||
Loans | (6,609) | |||
Allowance for loan losses | 3,301 | |||
Deferred income taxes | (472) | |||
Bank owned life insurance | 0 | |||
Core deposit intangible | 1,999 | |||
Other assets | 780 | |||
Total assets acquired | (1,383) | |||
Deposits | 333 | |||
FHLB advances | 0 | |||
Other liabilities | (120) | |||
Total liabilities assumed | 213 | |||
Excess of assets acquired over liabilities assumed | $ (1,596) |
Acquisitions Infinity Franchise
Acquisitions Infinity Franchise Holdings Acquisition - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | |
Infinity Franchise Holdings Acquisition | ||||
Business Acquisition [Line Items] | ||||
Assets acquired | $ 80,164 | |||
Total liabilities assumed | 709,000 | |||
Credit facility paid off | 67,600 | |||
Consideration paid | 17,360 | |||
Cash consideration | $ 9,000 | |||
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 | |||
Goodwill | $ 5,522 | |||
As initially reported | Infinity Franchise Holdings Acquisition | ||||
Business Acquisition [Line Items] | ||||
Assets acquired | $ 80,978 |
Acquisitions Infinity Franch107
Acquisitions Infinity Franchise Holdings Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Deferred loan costs | $ 0 | |||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | |
Infinity Franchise Holdings Acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 555 | |||
Loans | 78,833 | |||
Allowance for loan losses | 0 | |||
Other assets | 776 | |||
Total assets acquired | 80,164 | |||
Bank loan | 67,617 | |||
Accrued compensation | 495 | |||
Other liabilities | 214 | |||
Total liabilities assumed | 68,326 | |||
Excess of assets acquired over liabilities assumed | 11,838 | |||
Consideration paid | 17,360 | |||
Goodwill | 5,522 | |||
As initially reported | Infinity Franchise Holdings Acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 555 | |||
Loans | 78,833 | |||
Deferred loan costs | 1,082 | |||
Allowance for loan losses | (268) | |||
Other assets | 776 | |||
Total assets acquired | 80,978 | |||
Bank loan | 67,617 | |||
Accrued compensation | 495 | |||
Other liabilities | 214 | |||
Total liabilities assumed | 68,326 | |||
Excess of assets acquired over liabilities assumed | 12,652 | |||
Fair Value Adjustments | Infinity Franchise Holdings Acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Loans | 0 | |||
Deferred loan costs | (1,082) | |||
Allowance for loan losses | 268 | |||
Other assets | 0 | |||
Total assets acquired | (814) | |||
Bank loan | 0 | |||
Accrued compensation | 0 | |||
Other liabilities | 0 | |||
Total liabilities assumed | 0 | |||
Excess of assets acquired over liabilities assumed | $ (814) |
Acquisitions San Diego Trust Ba
Acquisitions San Diego Trust Bank Acquisition - Narrative (Details) $ in Thousands | Jun. 25, 2013USD ($) | Jun. 25, 2013USD ($)entityshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | ||
San Diego Trust Bank | |||||
Business Acquisition [Line Items] | |||||
Consideration paid | $ 30,600 | $ 30,622 | |||
Cash consideration | $ 16,200 | ||||
Number of shares of common stock issued as consideration | shares | 1,198,255 | ||||
Goodwill | $ 5,574 | $ 5,574 | $ 5,600 | ||
Number of entities in business combination | entity | 2 |
Acquisitions San Diego Trust109
Acquisitions San Diego Trust Bank Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 25, 2013 | Jun. 25, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | ||
San Diego Trust Bank | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 30,252 | $ 30,252 | |||
Investment securities | 124,805 | 124,805 | |||
Loans | 42,722 | 42,722 | |||
Allowance for loan losses | 0 | 0 | |||
Other real estate owned | 752 | 752 | |||
Core deposit intangible | 2,836 | 2,836 | |||
Other assets | 9,856 | 9,856 | |||
Total assets acquired | 211,223 | 211,223 | |||
Deposits | 183,907 | 183,907 | |||
Deferred tax liability (asset) | 1,174 | 1,174 | |||
Other liabilities | 1,094 | 1,094 | |||
Total liabilities assumed | 186,175 | 186,175 | |||
Excess of assets acquired over liabilities assumed | 25,048 | 25,048 | |||
Consideration paid | 30,600 | 30,622 | |||
Goodwill | 5,574 | 5,574 | $ 5,600 | ||
As initially reported | San Diego Trust Bank | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 30,252 | 30,252 | |||
Investment securities | 124,960 | 124,960 | |||
Loans | 42,945 | 42,945 | |||
Allowance for loan losses | (1,013) | (1,013) | |||
Other real estate owned | 752 | 752 | |||
Core deposit intangible | 0 | 0 | |||
Other assets | 9,856 | 9,856 | |||
Total assets acquired | 207,752 | 207,752 | |||
Deposits | 183,901 | 183,901 | |||
Deferred tax liability (asset) | (333) | (333) | |||
Other liabilities | 1,823 | 1,823 | |||
Total liabilities assumed | 185,391 | 185,391 | |||
Excess of assets acquired over liabilities assumed | 22,361 | 22,361 | |||
Fair Value Adjustments | San Diego Trust Bank | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Investment securities | (155) | (155) | |||
Loans | (223) | (223) | |||
Allowance for loan losses | 1,013 | 1,013 | |||
Other real estate owned | 0 | 0 | |||
Core deposit intangible | 2,836 | 2,836 | |||
Other assets | 0 | 0 | |||
Total assets acquired | 3,471 | 3,471 | |||
Deposits | 6 | 6 | |||
Deferred tax liability (asset) | 1,507 | 1,507 | |||
Other liabilities | (729) | (729) | |||
Total liabilities assumed | 784 | 784 | |||
Excess of assets acquired over liabilities assumed | $ 2,687 | $ 2,687 |
Acquisitions First Association
Acquisitions First Association Bank Acquisition - Narrative (Details) $ in Thousands | Mar. 15, 2013USD ($)entityshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | |
First Association Bank | ||||
Business Acquisition [Line Items] | ||||
Consideration paid | $ 57,906 | |||
Cash consideration | $ 43,000 | |||
Number of shares of common stock issued as consideration | shares | 1,279,217 | |||
Goodwill | $ 11,854 | $ 11,900 | ||
Number of entities in business combination | entity | 2 |
Acquisitions First Associati111
Acquisitions First Association Bank Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 15, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 50,832 | $ 22,950 | $ 17,428 | |
First Association Bank | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 167,663 | |||
Investment securities | 222,391 | |||
Loans | 26,422 | |||
Allowance for loan losses | 0 | |||
Core deposit intangible | 1,930 | |||
Other assets | 5,823 | |||
Total assets acquired | 424,229 | |||
Deposits | 356,818 | |||
Bank loan | 16,905 | |||
Deferred tax liability (asset) | 3,918 | |||
Other liabilities | 536 | |||
Total liabilities assumed | 378,177 | |||
Excess of assets acquired over liabilities assumed | 46,052 | |||
Consideration paid | 57,906 | |||
Goodwill | 11,854 | $ 11,900 | ||
As initially reported | First Association Bank | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 167,663 | |||
Investment securities | 219,913 | |||
Loans | 26,264 | |||
Allowance for loan losses | (224) | |||
Core deposit intangible | 0 | |||
Other assets | 5,823 | |||
Total assets acquired | 419,439 | |||
Deposits | 356,737 | |||
Bank loan | 16,905 | |||
Deferred tax liability (asset) | 0 | |||
Other liabilities | 536 | |||
Total liabilities assumed | 374,178 | |||
Excess of assets acquired over liabilities assumed | 45,261 | |||
Fair Value Adjustments | First Association Bank | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Investment securities | 2,478 | |||
Loans | 158 | |||
Allowance for loan losses | 224 | |||
Core deposit intangible | 1,930 | |||
Other assets | 0 | |||
Total assets acquired | 4,790 | |||
Deposits | 81 | |||
Bank loan | 0 | |||
Deferred tax liability (asset) | 3,918 | |||
Other liabilities | 0 | |||
Total liabilities assumed | 3,999 | |||
Excess of assets acquired over liabilities assumed | $ 791 |
Acquisitions Additional informa
Acquisitions Additional information (Details) - Acquired Loans $ in Thousands | Dec. 31, 2015USD ($) |
Infinity Franchise Capital, LLC | |
Business Acquisition [Line Items] | |
Contractual amounts due | $ 98,320 |
Cash flows not expected to be collected | 0 |
Expected cash flows | 98,320 |
Interest component of expected cash flows | 19,487 |
Fair value of acquired loans | 78,833 |
Independence Bank | |
Business Acquisition [Line Items] | |
Contractual amounts due | 453,987 |
Cash flows not expected to be collected | 3,795 |
Expected cash flows | 450,192 |
Interest component of expected cash flows | 117,299 |
Fair value of acquired loans | 332,893 |
First Association Bank | |
Business Acquisition [Line Items] | |
Contractual amounts due | 32,107 |
Cash flows not expected to be collected | 0 |
Expected cash flows | 32,107 |
Interest component of expected cash flows | 5,685 |
Fair value of acquired loans | 26,422 |
San Diego Trust Bank | |
Business Acquisition [Line Items] | |
Contractual amounts due | 47,251 |
Cash flows not expected to be collected | 0 |
Expected cash flows | 47,251 |
Interest component of expected cash flows | 4,529 |
Fair value of acquired loans | $ 42,722 |
Acquisitions Pro Forma Informat
Acquisitions Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Combinations [Abstract] | |||
Net interest and other income | $ 122,426 | $ 110,727 | $ 84,988 |
Net income | $ 25,862 | $ 20,428 | $ 11,123 |
Basic earnings per share (in dollars per share) | $ 1.22 | $ 0.95 | $ 0.54 |
Diluted earnings per share (in dollars per share) | $ 1.20 | $ 0.94 | $ 0.52 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Jan. 31, 2016USD ($)$ / sharesshares | Oct. 02, 2015bank | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Subsequent Events | |||||
Total assets | $ 2,790,646 | $ 2,038,897 | |||
Total Gross Loans | 2,262,683 | 1,628,445 | $ 1,243,252 | ||
Total deposits | $ 2,195,123 | $ 1,630,826 | |||
Security California Bancorp [Member] | |||||
Subsequent Events | |||||
Number of branches | bank | 6 | ||||
Subsequent events | Security California Bancorp [Member] | |||||
Subsequent Events | |||||
Total assets | $ 715,000 | ||||
Total Gross Loans | 467,000 | ||||
Total deposits | 635,000 | ||||
Consideration paid | 120,000 | ||||
Cash consideration | $ 788,100 | ||||
Subsequent events | Security California Bancorp [Member] | Merger agreement | |||||
Subsequent Events | |||||
Number of shares of the entity that the acquired entity's shareholder will receive for each share of acquiree | 0.9629 | ||||
Stock option | |||||
Subsequent Events | |||||
Weighted average exercise price (in dollars per share) | $ / shares | $ 9.09 | ||||
Stock option | Subsequent events | Security California Bancorp [Member] | |||||
Subsequent Events | |||||
Stock price of the acquired entity (in dollars per share) | $ / shares | $ 18.75 | ||||
Number of shares of common stock issued as consideration | shares | 248,459 | ||||
Weighted average exercise price (in dollars per share) | $ / shares | $ 15.58 |