UNITED STATES SECURITIES AND EXCHANGE COMMISSION
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(X)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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DELAWARE
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33-0743196
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(State or other jurisdiction of incorporation or organization)
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(I.R.S Employer Identification No.)
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17901 VON KARMAN AVENUE, SUITE 1200, IRVINE, CALIFORNIA 92614
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(Address of principal executive offices and zip code)
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(949) 864-8000
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(Registrant’s telephone number, including area code)
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Large accelerated filer
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[ ]
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Accelerated filer
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[X]
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Non-accelerated filer
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[ ]
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Smaller reporting company
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[ ]
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(Do not check if a smaller
reporting company)
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PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
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||||||||||||
(dollars in thousands, except share data)
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||||||||||||
ASSETS
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March 31, 2013
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December 31, 2012
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March 31, 2012
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|||||||||
(Unaudited)
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(Audited)
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(Unaudited)
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||||||||||
Cash and due from banks
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$ | 99,431 | $ | 59,325 | $ | 93,622 | ||||||
Federal funds sold
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27 | 27 | 27 | |||||||||
Cash and cash equivalents
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99,458 | 59,352 | 93,649 | |||||||||
Investment securities available for sale
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301,160 | 84,066 | 150,739 | |||||||||
FHLB stock/Federal Reserve Bank stock, at cost
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10,974 | 11,247 | 11,975 | |||||||||
Loans held for sale, net
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3,643 | 3,681 | 62 | |||||||||
Loans held for investment
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941,828 | 982,207 | 695,195 | |||||||||
Allowance for loan losses
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(7,994 | ) | (7,994 | ) | (8,116 | ) | ||||||
Loans held for investment, net
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933,834 | 974,213 | 687,079 | |||||||||
Accrued interest receivable
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4,898 | 4,126 | 3,632 | |||||||||
Other real estate owned
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1,561 | 2,258 | 1,768 | |||||||||
Premises and equipment
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8,862 | 8,575 | 9,550 | |||||||||
Deferred income taxes
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2,646 | 6,887 | 8,654 | |||||||||
Bank owned life insurance
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17,701 | 13,485 | 13,096 | |||||||||
Intangible assets
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4,463 | 2,626 | 2,013 | |||||||||
Goodwill
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11,854 | - | - | |||||||||
Other assets
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5,601 | 3,276 | 2,954 | |||||||||
TOTAL ASSETS
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$ | 1,406,655 | $ | 1,173,792 | $ | 985,171 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||||||
LIABILITIES:
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||||||||||||
Deposit accounts:
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||||||||||||
Noninterest bearing
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$ | 316,536 | $ | 213,636 | $ | 125,448 | ||||||
Interest bearing:
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||||||||||||
Transaction accounts
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519,828 | 329,925 | 311,152 | |||||||||
Retail certificates of deposit
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344,968 | 361,207 | 410,117 | |||||||||
Wholesale certificates of deposit
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4,387 | - | - | |||||||||
Total deposits
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1,185,719 | 904,768 | 846,717 | |||||||||
FHLB advances and other borrowings
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44,191 | 115,500 | 28,500 | |||||||||
Subordinated debentures
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10,310 | 10,310 | 10,310 | |||||||||
Accrued expenses and other liabilities
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8,846 | 8,697 | 10,165 | |||||||||
TOTAL LIABILITIES
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1,249,066 | 1,039,275 | 895,692 | |||||||||
STOCKHOLDERS’ EQUITY:
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||||||||||||
Common stock, $.01 par value; 25,000,000 shares authorized; 15,437,531 shares at March 31, 2013, 13,661,648 shares at December 31, 2012, and 10,329,934 shares at March 31, 2012 issued and outstanding
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154 | 137 | 103 | |||||||||
Additional paid-in capital
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128,075 | 107,453 | 76,239 | |||||||||
Retained earnings
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27,794 | 25,822 | 12,738 | |||||||||
Accumulated other comprehensive income, net of tax of $1,095 at March 31, 2013, $772 at December 31, 2012, and $278 at March 31, 2012
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1,566 | 1,105 | 399 | |||||||||
TOTAL STOCKHOLDERS’ EQUITY
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157,589 | 134,517 | 89,479 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 1,406,655 | $ | 1,173,792 | $ | 985,171 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
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||||||||
(dollars in thousands, except per share data)
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||||||||
(unaudited)
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||||||||
Three Months Ended
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March 31, 2013
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March 31, 2012
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INTEREST INCOME
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Loans
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$ | 13,396 | $ | 11,237 | ||||
Investment securities and other interest-earning assets
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839 | 879 | ||||||
Total interest income
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14,235 | 12,116 | ||||||
INTEREST EXPENSE
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||||||||
Interest-bearing deposits:
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||||||||
Interest on transaction accounts
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218 | 329 | ||||||
Interest on certificates of deposit
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801 | 1,427 | ||||||
Total interest-bearing deposits
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1,019 | 1,756 | ||||||
FHLB advances and other borrowings
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240 | 235 | ||||||
Subordinated debentures
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77 | 84 | ||||||
Total interest expense
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1,336 | 2,075 | ||||||
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES
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12,899 | 10,041 | ||||||
PROVISION FOR LOAN LOSSES
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296 | - | ||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
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12,603 | 10,041 | ||||||
NONINTEREST INCOME
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||||||||
Loan servicing fees
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326 | 177 | ||||||
Deposit fees
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440 | 501 | ||||||
Net gain from sales of loans
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723 | - | ||||||
Other-than-temporary impairment loss on investment securities, net
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(30 | ) | (37 | ) | ||||
Other income
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265 | 298 | ||||||
Total noninterest income
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1,724 | 939 | ||||||
NONINTEREST EXPENSE
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||||||||
Compensation and benefits
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5,097 | 3,520 | ||||||
Premises and occupancy
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1,293 | 878 | ||||||
Data processing and communications
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635 | 367 | ||||||
Other real estate owned operations, net
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37 | 147 | ||||||
FDIC insurance premiums
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140 | 133 | ||||||
Legal, audit and professional expense
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595 | 486 | ||||||
Marketing expense
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206 | 215 | ||||||
Office and postage expense
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263 | 163 | ||||||
Loan expense
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248 | 236 | ||||||
Deposit expense
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95 | 64 | ||||||
Merger related expense
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1,745 | - | ||||||
Other expense
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825 | 432 | ||||||
Total noninterest expense
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11,179 | 6,641 | ||||||
NET INCOME BEFORE INCOME TAXES
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3,148 | 4,339 | ||||||
INCOME TAX
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1,176 | 1,647 | ||||||
NET INCOME
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$ | 1,972 | $ | 2,692 | ||||
EARNINGS PER SHARE
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||||||||
Basic
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$ | 0.14 | $ | 0.26 | ||||
Diluted
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$ | 0.13 | $ | 0.25 | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING
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||||||||
Basic
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14,355,407 | 10,335,935 | ||||||
Diluted
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15,117,216 | 10,626,174 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
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||||||||
(dollars in thousands)
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||||||||
(unaudited)
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Three Months Ended March 31,
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2013
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2012
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Net Income
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$ | 1,972 | $ | 2,692 | ||||
Other comprehensive income, net of tax:
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||||||||
Unrealized holding gains on securities arising during the period, net of tax
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461 | 81 | ||||||
Reclassification adjustment for net gain on sale of securities included in net income, net of tax
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- | - | ||||||
Net unrealized gain on securities, net of tax
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461 | 81 | ||||||
Comprehensive Income
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$ | 2,433 | $ | 2,773 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
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||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
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(dollars in thousands)
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(unaudited)
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Common Stock
Shares
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Common Stock
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Additional Paid-in Capital
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Accumulated Retained
Earnings
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Accumulated Other Comprehensive Income
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Total Stockholders’ Equity
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Balance at December 31, 2012
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13,661,648 | $ | 137 | $ | 107,453 | $ | 25,822 | $ | 1,105 | $ | 134,517 | |||||||||||||
Net Income
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1,972 | 1,972 | ||||||||||||||||||||||
Other comprehensive income
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461 | 461 | ||||||||||||||||||||||
Share-based compensation expense
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152 | 152 | ||||||||||||||||||||||
Common stock repurchased and retired
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(3,666 | ) | - | (22 | ) | (22 | ) | |||||||||||||||||
Common stock issued
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1,774,217 | 17 | 20,482 | 20,499 | ||||||||||||||||||||
Stock options exercised
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5,332 | - | 10 | 10 | ||||||||||||||||||||
Balance at March 31, 2013
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15,437,531 | $ | 154 | $ | 128,075 | $ | 27,794 | $ | 1,566 | $ | 157,589 | |||||||||||||
Balance at December 31, 2011
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10,337,626 | $ | 103 | $ | 76,310 | $ | 10,046 | $ | 318 | $ | 86,777 | |||||||||||||
Net Income
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2,692 | 2,692 | ||||||||||||||||||||||
Other comprehensive income
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81 | 81 | ||||||||||||||||||||||
Share-based compensation expense
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8 | 8 | ||||||||||||||||||||||
Common stock repurchased and retired
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(13,022 | ) | - | (102 | ) | (102 | ) | |||||||||||||||||
Stock options exercised
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5,330 | - | 23 | 23 | ||||||||||||||||||||
Balance at March 31, 2012
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10,329,934 | $ | 103 | $ | 76,239 | $ | 12,738 | $ | 399 | $ | 89,479 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
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||||||||
(in thousands)
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||||||||
(unaudited)
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Three Months Ended March 31,
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2013
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2012
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net income
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$ | 1,972 | $ | 2,692 | ||||
Adjustments to net income:
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||||||||
Depreciation and amortization expense
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440 | 312 | ||||||
Provision for loan losses
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296 | - | ||||||
Share-based compensation expense
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152 | 8 | ||||||
Loss (gain) on sale of other real estate owned
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3 | (35 | ) | |||||
Write down of other real estate owned
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- | 184 | ||||||
Amortization of premium/discounts on securities held for sale, net
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237 | 140 | ||||||
Amortization of loan mark-to-market discount from FDIC transaction
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(729 | ) | (344 | ) | ||||
Other-than-temporary impairment loss on investment securities, net
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30 | 37 | ||||||
Gain on sale of loans held for investment
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(723 | ) | - | |||||
Purchase and origination of loans held for sale
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- | (62 | ) | |||||
Recoveries on loans
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184 | 17 | ||||||
Principal payments from loans held for sale
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38 | - | ||||||
Deferred income tax provision
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- | 344 | ||||||
Change in accrued expenses and other liabilities, net
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(387 | ) | (2,016 | ) | ||||
Income from bank owned life insurance, net
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(128 | ) | (119 | ) | ||||
Change in accrued interest receivable and other assets, net
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(1,347 | ) | 459 | |||||
Net cash provided by operating activities
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38 | 1,617 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
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||||||||
Proceeds from sale and principal payments on loans held for investment
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50,977 | 35,219 | ||||||
Net change in undisbursed loan funds
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107,003 | 40,077 | ||||||
Purchase and origination of loans held for investment
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(89,836 | ) | (33,243 | ) | ||||
Proceeds from sale of other real estate owned
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694 | 1,158 | ||||||
Principal payments on securities available for sale
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5,797 | 2,719 | ||||||
Purchase of securities available for sale
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- | (32,351 | ) | |||||
Purchases of premises and equipment
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(657 | ) | (43 | ) | ||||
Redemption of Federal Home Loan Bank of San Francisco stock
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926 | 500 | ||||||
Cash disbursed for purchase of FAB
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(42,966 | ) | - | |||||
Cash acquired in FAB transaction
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167,663 | - | ||||||
Net cash provided by investing activities
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199,601 | 14,036 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES
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||||||||
Net (decrease) increase in deposit accounts
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(75,867 | ) | 17,840 | |||||
Repayment of FHLB advances and other borrowings
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(88,214 | ) | - | |||||
Proceeds from issuance of common stock, net of issuance cost
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4,560 | - | ||||||
Proceeds from exercise of stock options
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10 | 23 | ||||||
Repurchase of common stock
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(22 | ) | (102 | ) | ||||
Net cash (used in) provided by financing activities
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(159,533 | ) | 17,761 | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
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40,106 | 33,414 | ||||||
CASH AND CASH EQUIVALENTS, beginning of period
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59,352 | 60,235 | ||||||
CASH AND CASH EQUIVALENTS, end of period
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$ | 99,458 | $ | 93,649 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
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||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
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||||||||
(in thousands)
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||||||||
(unaudited)
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||||||||
Three Months Ended March 31,
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2013
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2012
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SUPPLEMENTAL CASH FLOW DISCLOSURES
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Interest paid
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$ | 1,277 | $ | 2,041 | ||||
Income taxes paid
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2,700 | 1,475 | ||||||
Assets acquired (liabilities assumed and capital created) in FAB transaction (See Note 3):
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||||||||
Investment securities
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222,391 | - | ||||||
FHLB Stock and TIB Stock
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653 | - | ||||||
Loans
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26,422 | - | ||||||
Core deposit intangible
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1,930 | - | ||||||
Goodwill
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11,854 | - | ||||||
Fixed assets
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70 | - | ||||||
Other assets
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6,098 | - | ||||||
Deposits
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(356,818 | ) | - | |||||
Other borrowings
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(16,905 | ) | - | |||||
Other liabilities
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(4,454 | ) | - | |||||
Additional paid-in capital
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(15,938 | ) | - | |||||
NONCASH INVESTING ACTIVITIES DURING THE PERIOD
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||||||||
Transfers from loans to other real estate owned
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$ | - | $ | 1,843 | ||||
Investment securities available for sale purchased and not settled
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$ | - | $ | 5,517 |
●
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$223.0 million in investment securities, including Federal Home Loan Bank (“FHLB”) and TIB-The Independent BankersBank (“TIB”) stock;
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●
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$124.7 million of cash and cash equivalents;
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●
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$26.4 million of loans;
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●
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$11.9 million in goodwill;
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●
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$6.2 million of other types of assets; and
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●
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$1.9 million of a core deposit intangible.
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●
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$329.5 million in deposit transaction accounts;
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●
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$17.4 million in retail certificates of deposit;
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●
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$9.9 million in wholesale deposits;
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●
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$16.9 million in other borrowings;
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●
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$3.9 million in deferred tax liability; and
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●
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$536,000 of other liabilities.
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March 31, 2013
|
||||||||||||||||
Amortized Cost
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Unrealized
Gain
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Unrealized
Loss
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Estimated
Fair Value
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|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities available for sale:
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|||||||||||||||
U.S. Treasury
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$ | 74 | $ | 11 | $ | - | $ | 85 | ||||||||
Municipal bonds
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154,543 | 1,783 | (387 | ) | 155,939 | |||||||||||
Mortgage-backed securities
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143,882 | 1,821 | (567 | ) | 145,136 | |||||||||||
Total securities available for sale
|
298,499 | 3,615 | (954 | ) | 301,160 | |||||||||||
Stock:
|
||||||||||||||||
FHLB stock
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$ | 8,955 | - | - | 8,955 | |||||||||||
Federal Reserve Bank stock
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2,019 | - | - | 2,019 | ||||||||||||
Total stock
|
10,974 | - | - | 10,974 | ||||||||||||
Total securities
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$ | 309,473 | $ | 3,615 | $ | (954 | ) | $ | 312,134 | |||||||
December 31, 2012
|
||||||||||||||||
Amortized Cost
|
Unrealized
Gain
|
Unrealized
Loss
|
Estimated
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
U.S. Treasury
|
$ | 147 | $ | 12 | $ | - | $ | 159 | ||||||||
Municipal bonds
|
25,401 | 1,186 | (1 | ) | 26,586 | |||||||||||
Mortgage-backed securities
|
56,641 | 1,162 | (482 | ) | 57,321 | |||||||||||
Total securities available for sale
|
82,189 | 2,360 | (483 | ) | 84,066 | |||||||||||
Stock:
|
||||||||||||||||
FHLB stock
|
9,228 | - | - | 9,228 | ||||||||||||
Federal Reserve Bank stock
|
2,019 | - | - | 2,019 | ||||||||||||
Total stock
|
11,247 | - | - | 11,247 | ||||||||||||
Total securities
|
$ | 93,436 | $ | 2,360 | $ | (483 | ) | $ | 95,313 | |||||||
March 31, 2012
|
||||||||||||||||
Amortized Cost
|
Unrealized
Gain
|
Unrealized
Loss
|
Estimated
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
U.S. Treasury
|
$ | 147 | $ | 13 | $ | - | $ | 160 | ||||||||
Corporate
|
5,000 | - | (183 | ) | 4,817 | |||||||||||
Municipal bonds
|
26,940 | 851 | (96 | ) | 27,695 | |||||||||||
Mortgage-backed securities
|
117,975 | 893 | (801 | ) | 118,067 | |||||||||||
Total securities available for sale
|
150,062 | 1,757 | (1,080 | ) | 150,739 | |||||||||||
Stock:
|
||||||||||||||||
FHLB stock
|
9,956 | - | - | 9,956 | ||||||||||||
Federal Reserve Bank stock
|
2,019 | - | - | 2,019 | ||||||||||||
Total stock
|
11,975 | - | - | 11,975 | ||||||||||||
Total securities
|
$ | 162,037 | $ | 1,757 | $ | (1,080 | ) | $ | 162,714 |
March 31, 2013
|
||||||||||||||||||||||||||||||||||||
Less than 12 months
|
12 months or Longer
|
Total
|
||||||||||||||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||||||||||||||
Fair
|
Holding
|
Fair
|
Holding
|
Fair
|
Holding
|
|||||||||||||||||||||||||||||||
Number
|
Value
|
Losses
|
Number
|
Value
|
Losses
|
Number
|
Value
|
Losses
|
||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Municipal bonds
|
122 | $ | 53,773 | $ | (387 | ) | - | $ | - | $ | - | 122 | $ | 53,773 | $ | (387 | ) | |||||||||||||||||||
Mortgage-backed securities
|
3 | 20,258 | (350 | ) | 27 | 1,031 | (217 | ) | 30 | 21,289 | (567 | ) | ||||||||||||||||||||||||
Total
|
125 | $ | 74,031 | $ | (737 | ) | 27 | $ | 1,031 | $ | (217 | ) | 152 | $ | 75,062 | $ | (954 | ) | ||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||||||||||
Less than 12 months
|
12 months or Longer
|
Total
|
||||||||||||||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||||||||||||||
Fair
|
Holding
|
Fair
|
Holding
|
Fair
|
Holding
|
|||||||||||||||||||||||||||||||
Number
|
Value
|
Losses
|
Number
|
Value
|
Losses
|
Number
|
Value
|
Losses
|
||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Municipal bonds
|
1 | $ | 292 | $ | (1 | ) | - | $ | - | $ | - | 1 | $ | 292 | $ | (1 | ) | |||||||||||||||||||
Mortgage-backed securities
|
2 | 15,128 | (152 | ) | 31 | 1,012 | (330 | ) | 33 | 16,140 | (482 | ) | ||||||||||||||||||||||||
Total
|
3 | $ | 15,420 | $ | (153 | ) | 31 | $ | 1,012 | $ | (330 | ) | 34 | $ | 16,432 | $ | (483 | ) | ||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||||||||||||||||||
Less than 12 months
|
12 months or Longer
|
Total
|
||||||||||||||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||||||||||||||
Fair
|
Holding
|
Fair
|
Holding
|
Fair
|
Holding
|
|||||||||||||||||||||||||||||||
Number
|
Value
|
Losses
|
Number
|
Value
|
Losses
|
Number
|
Value
|
Losses
|
||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Corporate bonds
|
1 | $ | 4,817 | $ | (183 | ) | - | $ | - | $ | - | 1 | $ | 4,817 | $ | (183 | ) | |||||||||||||||||||
Municipal bonds
|
8 | 2,832 | (96 | ) | - | - | - | 8 | 2,832 | (96 | ) | |||||||||||||||||||||||||
Mortgage-backed securities
|
13 | 25,523 | (87 | ) | 39 | 1,368 | (714 | ) | 52 | 26,891 | (801 | ) | ||||||||||||||||||||||||
Total
|
22 | $ | 33,172 | $ | (366 | ) | 39 | $ | 1,368 | $ | (714 | ) | 61 | $ | 34,540 | $ | (1,080 | ) |
One Year
|
More than One
|
More than Five Years
|
More than
|
|
||||||||||||||||||||||||||||||||||||
or Less
|
Year to Five Years
|
to Ten Years
|
Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||||||||||||||||||||
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||||||||||||||||||||||||||
U.S. Treasury
|
$ | - | $ | - | $ | - | $ | - | $ | 74 | $ | 85 | $ | - | $ | - | $ | 74 | $ | 85 | ||||||||||||||||||||
Municipal bonds
|
- | - | 4,716 | 4,720 | 61,012 | 61,297 | 88,815 | 89,922 | 154,543 | 155,939 | ||||||||||||||||||||||||||||||
Mortgage-backed securities
|
- | - | 23 | 24 | 12,989 | 13,102 | 130,870 | 132,010 | 143,882 | 145,136 | ||||||||||||||||||||||||||||||
Total investment securities available for sale
|
- | - | 4,739 | 4,744 | 74,075 | 74,484 | 219,685 | 221,932 | 298,499 | 301,160 | ||||||||||||||||||||||||||||||
Stock:
|
||||||||||||||||||||||||||||||||||||||||
FHLB
|
8,955 | 8,955 | - | - | - | - | - | - | 8,955 | 8,955 | ||||||||||||||||||||||||||||||
Federal Reserve Bank
|
2,019 | 2,019 | - | - | - | - | - | - | 2,019 | 2,019 | ||||||||||||||||||||||||||||||
Total stock
|
10,974 | 10,974 | - | - | - | - | - | - | 10,974 | 10,974 | ||||||||||||||||||||||||||||||
Total securities
|
$ | 10,974 | $ | 10,974 | $ | 4,739 | $ | 4,744 | $ | 74,075 | $ | 74,484 | $ | 219,685 | $ | 221,932 | $ | 309,473 | $ | 312,134 |
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
||||||||||
(in thousands)
|
||||||||||||
Business loans:
|
||||||||||||
Commercial and industrial
|
$ | 140,592 | $ | 115,354 | $ | 83,947 | ||||||
Commercial owner occupied (1)
|
166,571 | 150,934 | 146,904 | |||||||||
SBA
|
5,116 | 6,882 | 3,948 | |||||||||
Warehouse facilities
|
138,935 | 195,761 | 44,246 | |||||||||
Real estate loans:
|
||||||||||||
Commercial non-owner occupied
|
256,015 | 253,409 | 168,672 | |||||||||
Multi-family
|
139,100 | 156,424 | 185,367 | |||||||||
One-to-four family (2)
|
87,109 | 97,463 | 52,280 | |||||||||
Land
|
7,863 | 8,774 | 7,246 | |||||||||
Other loans
|
4,690 | 1,193 | 3,139 | |||||||||
Total gross loans (3)
|
945,991 | 986,194 | 695,749 | |||||||||
Less loans held for sale, net
|
3,643 | 3,681 | 62 | |||||||||
Total gross loans held for investment
|
942,348 | 982,513 | 695,687 | |||||||||
Less:
|
||||||||||||
Deferred loan origination costs (fees) and premiums (discounts), net
|
(520 | ) | (306 | ) | (492 | ) | ||||||
Allowance for loan losses
|
(7,994 | ) | (7,994 | ) | (8,116 | ) | ||||||
Loans held for investment, net
|
$ | 933,834 | $ | 974,213 | $ | 687,079 | ||||||
(1) Majority secured by real estate.
|
||||||||||||
(2) Includes second trust deeds.
|
||||||||||||
(3) Total gross loans for March 31, 2013 is net of the mark-to-market discounts on Canyon National loans of $2.7 million, on Palm Desert National loans of $4.7 million, and on FAB loans of $157,000.
|
March 31, 2013
|
||||||||||||
Canyon National
|
Palm Desert National
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Business loans:
|
||||||||||||
Commercial and industrial
|
$ | 77 | $ | 214 | $ | 291 | ||||||
Commercial owner occupied (1)
|
941 | 260 | 1,201 | |||||||||
Real estate loans:
|
||||||||||||
Commercial non-owner occupied
|
1,029 | - | 1,029 | |||||||||
One-to-four family (2)
|
- | 27 | 27 | |||||||||
Land
|
1,034 | - | 1,034 | |||||||||
Total purchase credit impaired
|
$ | 3,081 | $ | 501 | $ | 3,582 |
Three Months Ended March 31, 2013
|
||||||||||||
Canyon National
|
Palm Desert National
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Balance at the beginning of period
|
$ | 2,029 | $ | 247 | $ | 2,276 | ||||||
Accretable yield at acquisition
|
- | - | - | |||||||||
Accretion
|
(122 | ) | (28 | ) | (150 | ) | ||||||
Disposals and other
|
- | (75 | ) | (75 | ) | |||||||
Change in accretable yield
|
157 | 448 | 605 | |||||||||
Balance at the end of period
|
$ | 2,064 | $ | 592 | $ | 2,656 |
Impaired Loans
|
||||||||||||||||||||||||||||
Contractual
Unpaid Principal Balance
|
Recorded Investment
|
With Specific Allowance
|
Without Specific Allowance
|
Specific Allowance for Impaired Loans
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||||||
Business loans:
|
||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 697 | $ | 580 | $ | 281 | $ | 299 | $ | 256 | $ | 584 | $ | 18 | ||||||||||||||
Commercial owner occupied
|
245 | 245 | - | 245 | - | 245 | - | |||||||||||||||||||||
SBA
|
422 | 129 | - | 129 | - | 143 | 6 | |||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Commercial non-owner occupied
|
2,478 | 1,974 | - | 1,974 | - | 1,550 | 22 | |||||||||||||||||||||
Multi-family
|
- | - | - | - | - | 88 | 2 | |||||||||||||||||||||
One-to-four family
|
849 | 824 | 501 | 322 | 360 | 858 | 26 | |||||||||||||||||||||
Totals
|
$ | 4,691 | $ | 3,752 | $ | 782 | $ | 2,969 | $ | 616 | $ | 3,468 | $ | 74 | ||||||||||||||
Impaired Loans
|
||||||||||||||||||||||||||||
Contractual
Unpaid Principal Balance
|
Recorded Investment
|
With Specific Allowance
|
Without Specific Allowance
|
Specific Allowance for Impaired Loans
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||
Business loans:
|
||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 707 | $ | 593 | $ | 287 | $ | 306 | $ | 270 | $ | 203 | $ | 29 | ||||||||||||||
Commercial owner occupied
|
- | - | - | - | - | 444 | - | |||||||||||||||||||||
SBA
|
810 | 259 | - | 259 | - | 468 | 21 | |||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Commercial non-owner occupied
|
746 | 670 | - | 670 | - | 1,031 | 59 | |||||||||||||||||||||
Multi-family
|
315 | 266 | - | 266 | - | 1,123 | 22 | |||||||||||||||||||||
One-to-four family
|
960 | 948 | 541 | 407 | 395 | 720 | 59 | |||||||||||||||||||||
Totals
|
$ | 3,538 | $ | 2,736 | $ | 828 | $ | 1,908 | $ | 665 | $ | 3,989 | $ | 190 | ||||||||||||||
Impaired Loans
|
||||||||||||||||||||||||||||
Contractual
Unpaid Principal Balance
|
Recorded Investment
|
With Specific Allowance
|
Without Specific Allowance
|
Specific Allowance for Impaired Loans
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||||||||||
Business loans:
|
||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 81 | $ | 76 | $ | - | $ | 76 | $ | - | $ | 351 | $ | 1 | ||||||||||||||
Commercial owner occupied
|
1,043 | 913 | - | 913 | - | 1,154 | - | |||||||||||||||||||||
SBA
|
2,171 | 604 | - | 604 | - | 547 | 8 | |||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Commercial non-owner occupied
|
709 | 648 | - | 648 | - | 1,069 | 11 | |||||||||||||||||||||
Multi-family
|
1,446 | 1,414 | - | 1,414 | - | 1,417 | 23 | |||||||||||||||||||||
One-to-four family
|
1,170 | 973 | - | 973 | - | 671 | 11 | |||||||||||||||||||||
Totals
|
$ | 6,620 | $ | 4,628 | $ | - | $ | 4,628 | $ | - | $ | 5,209 | $ | 54 |
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
||||||||||
(in thousands)
|
||||||||||||
Nonaccruing loans
|
$ | 3,055 | $ | 1,988 | $ | 3,696 | ||||||
Accruing loans
|
697 | 748 | 932 | |||||||||
Total impaired loans
|
$ | 3,752 | $ | 2,736 | $ | 4,628 |
●
|
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 deficiency 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. OREO acquired from foreclosure is also classified as substandard.
|
●
|
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.
|
Credit Risk Grades
|
||||||||||||||||
Special
|
Total Gross
|
|||||||||||||||
Pass
|
Mention
|
Substandard
|
Loans
|
|||||||||||||
March 31, 2013
|
(in thousands)
|
|||||||||||||||
Business loans:
|
||||||||||||||||
Commercial and industrial
|
$ | 136,947 | $ | 96 | $ | 3,549 | $ | 140,592 | ||||||||
Commercial owner occupied
|
149,787 | 2,792 | 13,992 | 166,571 | ||||||||||||
SBA
|
5,063 | - | 53 | 5,116 | ||||||||||||
Warehouse facilities
|
138,935 | - | - | 138,935 | ||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial non-owner occupied
|
247,140 | 360 | 8,515 | 256,015 | ||||||||||||
Multi-family
|
137,014 | 517 | 1,569 | 139,100 | ||||||||||||
One-to-four family
|
85,849 | - | 1,260 | 87,109 | ||||||||||||
Land
|
7,853 | - | 10 | 7,863 | ||||||||||||
Other loans
|
4,678 | - | 12 | 4,690 | ||||||||||||
Totals
|
$ | 913,266 | $ | 3,765 | $ | 28,960 | $ | 945,991 | ||||||||
Credit Risk Grades
|
||||||||||||||||
Special
|
Total Gross
|
|||||||||||||||
Pass
|
Mention
|
Substandard
|
Loans
|
|||||||||||||
December 31, 2012
|
(in thousands)
|
|||||||||||||||
Business loans:
|
||||||||||||||||
Commercial and industrial
|
$ | 111,895 | $ | 92 | $ | 3,367 | $ | 115,354 | ||||||||
Commercial owner occupied
|
136,330 | 2,674 | 11,930 | 150,934 | ||||||||||||
SBA
|
6,819 | - | 63 | 6,882 | ||||||||||||
Warehouse facilities
|
195,761 | - | - | 195,761 | ||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial non-owner occupied
|
240,585 | 687 | 12,137 | 253,409 | ||||||||||||
Multi-family
|
143,003 | 11,583 | 1,838 | 156,424 | ||||||||||||
One-to-four family
|
96,061 | - | 1,402 | 97,463 | ||||||||||||
Land
|
8,762 | - | 12 | 8,774 | ||||||||||||
Other loans
|
1,177 | - | 16 | 1,193 | ||||||||||||
Totals
|
$ | 940,393 | $ | 15,036 | $ | 30,765 | $ | 986,194 | ||||||||
Credit Risk Grades
|
||||||||||||||||
Special
|
Total Gross
|
|||||||||||||||
Pass
|
Mention
|
Substandard
|
Loans
|
|||||||||||||
March 31, 2012
|
(in thousands)
|
|||||||||||||||
Business loans:
|
- | |||||||||||||||
Commercial and industrial
|
$ | 82,070 | $ | 864 | $ | 1,013 | $ | 83,947 | ||||||||
Commercial owner occupied
|
134,326 | 3,778 | 8,800 | 146,904 | ||||||||||||
SBA
|
3,747 | - | 201 | 3,948 | ||||||||||||
Warehouse facilities
|
44,246 | - | - | 44,246 | ||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial non-owner occupied
|
165,237 | 672 | 2,763 | 168,672 | ||||||||||||
Multi-family
|
170,714 | 9,932 | 4,721 | 185,367 | ||||||||||||
One-to-four family
|
50,580 | - | 1,700 | 52,280 | ||||||||||||
Land
|
7,246 | - | - | 7,246 | ||||||||||||
Other loans
|
3,119 | - | 20 | 3,139 | ||||||||||||
Totals
|
$ | 661,285 | $ | 15,246 | $ | 19,218 | $ | 695,749 |
Days Past Due
|
Non-
|
||||||||||||||||||||||
Current
|
30-59 | 60-89 | 90+ |
Total
|
Accruing
|
||||||||||||||||||
March 31, 2013
|
(in thousands)
|
||||||||||||||||||||||
Business loans:
|
|||||||||||||||||||||||
Commercial and industrial
|
$ | 140,365 | $ | 9 | $ | - | $ | 218 | $ | 140,592 | $ | 333 | |||||||||||
Commercial owner occupied
|
166,326 | - | - | 245 | 166,571 | 245 | |||||||||||||||||
SBA
|
5,044 | - | - | 72 | 5,116 | 121 | |||||||||||||||||
Warehouse facilities
|
138,935 | - | - | - | 138,935 | - | |||||||||||||||||
Real estate loans:
|
|||||||||||||||||||||||
Commercial non-owner occupied
|
254,678 | - | - | 1,337 | 256,015 | 1,974 | |||||||||||||||||
Multi-family
|
138,053 | - | 1,047 | - | 139,100 | - | |||||||||||||||||
One-to-four family
|
87,021 | 49 | 30 | 9 | 87,109 | 429 | |||||||||||||||||
Land
|
7,863 | - | - | - | 7,863 | - | |||||||||||||||||
Other loans
|
4,690 | - | - | - | 4,690 | - | |||||||||||||||||
Totals
|
$ | 942,975 | $ | 58 | $ | 1,077 | $ | 1,881 | $ | 945,991 | $ | 3,102 | |||||||||||
Days Past Due
|
Non-
|
||||||||||||||||||||||
Current
|
30-59 | 60-89 | 90+ |
Total
|
Accruing
|
||||||||||||||||||
December 31, 2012
|
(in thousands)
|
||||||||||||||||||||||
Business loans:
|
|||||||||||||||||||||||
Commercial and industrial
|
$ | 115,078 | $ | - | $ | 58 | $ | 218 | $ | 115,354 | $ | 347 | |||||||||||
Commercial owner occupied
|
150,689 | - | 245 | - | 150,934 | 14 | |||||||||||||||||
SBA
|
6,697 | - | - | 185 | 6,882 | 260 | |||||||||||||||||
Warehouse facilities
|
195,761 | - | - | - | 195,761 | - | |||||||||||||||||
Real estate loans:
|
|||||||||||||||||||||||
Commercial non-owner occupied
|
253,409 | - | - | - | 253,409 | 670 | |||||||||||||||||
Multi-family
|
156,424 | - | - | - | 156,424 | 266 | |||||||||||||||||
One-to-four family
|
97,283 | 101 | - | 79 | 97,463 | 522 | |||||||||||||||||
Land
|
8,774 | - | - | - | 8,774 | 127 | |||||||||||||||||
Other loans
|
1,188 | 5 | - | - | 1,193 | - | |||||||||||||||||
Totals
|
$ | 985,303 | $ | 106 | $ | 303 | $ | 482 | $ | 986,194 | $ | 2,206 | |||||||||||
Days Past Due
|
Non-
|
||||||||||||||||||||||
Current
|
30-59 | 60-89 | 90+ |
Total
|
Accruing
|
||||||||||||||||||
March 31, 2012
|
(in thousands)
|
||||||||||||||||||||||
Business loans:
|
|||||||||||||||||||||||
Commercial and industrial
|
$ | 83,937 | $ | 10 | $ | - | $ | - | $ | 83,947 | $ | 100 | |||||||||||
Commercial owner occupied
|
145,580 | - | 478 | 846 | 146,904 | 1,325 | |||||||||||||||||
SBA
|
3,435 | - | - | 513 | 3,948 | 544 | |||||||||||||||||
Warehouse facilities
|
44,246 | - | - | - | 44,246 | - | |||||||||||||||||
Real estate loans:
|
|||||||||||||||||||||||
Commercial non-owner occupied
|
168,487 | - | - | 185 | 168,672 | 648 | |||||||||||||||||
Multi-family
|
185,367 | - | - | - | 185,367 | 287 | |||||||||||||||||
One-to-four family
|
51,741 | - | 219 | 320 | 52,280 | 792 | |||||||||||||||||
Land
|
7,246 | - | - | - | 7,246 | - | |||||||||||||||||
Other loans
|
3,138 | 1 | - | - | 3,139 | - | |||||||||||||||||
Totals
|
$ | 693,177 | $ | 11 | $ | 697 | $ | 1,864 | $ | 695,749 | $ | 3,696 |
●
|
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.
|
●
|
Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment,
|
●
|
Changes in volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans, and
|
●
|
The existence and effect of concentrations of credit, and changes in the level of such concentrations.
|
●
|
Changes in national, regional and local economic conditions, including trends in real estate values and the interest rate environment, and
|
●
|
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.
|
●
|
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, and
|
●
|
The existence and effect of concentrations of credit, and changes in the level of such concentrations.
|
Commercial and industrial
|
Commercial owner occupied
|
SBA
|
Warehouse
|
Commercial non-owner occupied
|
Multi-family
|
One-to-four family
|
Land
|
Other loans
|
Total
|
|||||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012
|
$ | 1,310 | $ | 1,512 | $ | 79 | $ | 1,544 | $ | 1,459 | $ | 1,145 | $ | 862 | $ | 31 | $ | 52 | $ | 7,994 | ||||||||||||||||||||
Charge-offs
|
(58 | ) | - | (5 | ) | - | (401 | ) | - | (10 | ) | - | (6 | ) | (480 | ) | ||||||||||||||||||||||||
Recoveries
|
7 | - | 19 | - | - | - | 43 | - | 115 | 184 | ||||||||||||||||||||||||||||||
Provisions for (reduction in) loan losses
|
1,037 | 153 | (43 | ) | (814 | ) | 345 | (639 | ) | 279 | 90 | (112 | ) | 296 | ||||||||||||||||||||||||||
Balance, March 31, 2013
|
$ | 2,296 | $ | 1,665 | $ | 50 | $ | 730 | $ | 1,403 | $ | 506 | $ | 1,174 | $ | 121 | $ | 49 | $ | 7,994 | ||||||||||||||||||||
Amount of allowance attributed to:
|
||||||||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans
|
$ | 256 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 360 | $ | - | $ | - | $ | 616 | ||||||||||||||||||||
General portfolio allocation
|
2,040 | 1,665 | 50 | 730 | 1,403 | 506 | 814 | 121 | 49 | 7,378 | ||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
580 | 245 | 129 | - | 1,974 | - | 824 | - | - | 3,752 | ||||||||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment
|
44.14 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 43.69 | % | 0.00 | % | 0.00 | % | 16.42 | % | ||||||||||||||||||||
Loans collectively evaluated for impairment
|
$ | 140,012 | $ | 166,326 | $ | 4,987 | $ | 138,935 | $ | 254,041 | $ | 139,100 | $ | 86,285 | $ | 7,863 | $ | 4,690 | $ | 942,239 | ||||||||||||||||||||
General reserves to total loans collectively evaluated for impairment
|
1.46 | % | 1.00 | % | 1.00 | % | 0.53 | % | 0.55 | % | 0.36 | % | 0.94 | % | 1.54 | % | 1.04 | % | 0.78 | % | ||||||||||||||||||||
Total gross loans
|
$ | 140,592 | $ | 166,571 | $ | 5,116 | $ | 138,935 | $ | 256,015 | $ | 139,100 | $ | 87,109 | $ | 7,863 | $ | 4,690 | $ | 945,991 | ||||||||||||||||||||
Total allowance to gross loans
|
1.63 | % | 1.00 | % | 0.98 | % | 0.53 | % | 0.55 | % | 0.36 | % | 1.35 | % | 1.54 | % | 1.04 | % | 0.85 | % | ||||||||||||||||||||
Commercial and industrial
|
Commercial owner occupied
|
SBA
|
Warehouse
|
Commercial non-owner occupied
|
Multi-family
|
One-to-four family
|
Land
|
Other loans
|
Total
|
|||||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011
|
$ | 1,361 | $ | 1,119 | $ | 80 | $ | 1,347 | $ | 1,287 | $ | 2,281 | $ | 931 | $ | 39 | $ | 77 | $ | 8,522 | ||||||||||||||||||||
Charge-offs
|
(191 | ) | - | (108 | ) | - | (1 | ) | - | (122 | ) | - | (1 | ) | (423 | ) | ||||||||||||||||||||||||
Recoveries
|
1 | - | 11 | - | - | - | 1 | - | 4 | 17 | ||||||||||||||||||||||||||||||
Provisions for (reduction in) loan losses
|
291 | 31 | 188 | (576 | ) | 215 | 196 | (247 | ) | (39 | ) | (59 | ) | - | ||||||||||||||||||||||||||
Balance, March 31, 2012
|
$ | 1,462 | $ | 1,150 | $ | 171 | $ | 771 | $ | 1,501 | $ | 2,477 | $ | 563 | $ | - | $ | 21 | $ | 8,116 | ||||||||||||||||||||
Amount of allowance attributed to:
|
||||||||||||||||||||||||||||||||||||||||
Specifically evaluated impaired loans
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
General portfolio allocation
|
1,462 | 1,150 | 171 | 771 | 1,501 | 2,477 | 563 | - | 21 | 8,116 | ||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
76 | 913 | 604 | - | 648 | 1,414 | 973 | - | - | 4,628 | ||||||||||||||||||||||||||||||
Specific reserves to total loans individually evaluated for impairment
|
0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Loans collectively evaluated for impairment
|
$ | 83,871 | $ | 145,991 | $ | 3,344 | $ | 44,246 | $ | 168,024 | $ | 183,953 | $ | 51,307 | $ | 7,246 | $ | 3,139 | $ | 691,121 | ||||||||||||||||||||
General reserves to total loans collectively evaluated for impairment
|
1.74 | % | 0.79 | % | 5.11 | % | 1.74 | % | 0.89 | % | 1.35 | % | 1.10 | % | 0.00 | % | 0.67 | % | 1.17 | % | ||||||||||||||||||||
Total gross loans
|
$ | 83,947 | $ | 146,904 | $ | 3,948 | $ | 44,246 | $ | 168,672 | $ | 185,367 | $ | 52,280 | $ | 7,246 | $ | 3,139 | $ | 695,749 | ||||||||||||||||||||
Total allowance to gross loans
|
1.74 | % | 0.78 | % | 4.33 | % | 1.74 | % | 0.89 | % | 1.34 | % | 1.08 | % | 0.00 | % | 0.67 | % | 1.17 | % |
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Stock options excluded
|
102,193 | 271,511 |
Three Months Ended March 31,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Net
|
Per Share
|
Net
|
Per Share
|
|||||||||||||||||||||
Income
|
Shares
|
Amount
|
Income
|
Shares
|
Amount
|
|||||||||||||||||||
(dollars in thousands, except per share data)
|
||||||||||||||||||||||||
Net income
|
$ | 1,972 | $ | 2,692 | ||||||||||||||||||||
Basic income available to common stockholders
|
1,972 | 14,355,407 | $ | 0.14 | 2,692 | 10,335,935 | $ | 0.26 | ||||||||||||||||
Effect of warrants and dilutive stock options
|
- | 761,809 | - | 290,239 | ||||||||||||||||||||
Diluted income available to common stockholders plus assumed conversions
|
$ | 1,972 | 15,117,216 | $ | 0.13 | $ | 2,692 | 10,626,174 | $ | 0.25 |
|
At March 31, 2013
|
|||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Estimated
Fair Value
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 99,458 | $ | 99,458 | $ | - | $ | - | $ | 99,458 | ||||||||||
Securities available for sale
|
301,160 | 142,219 | 157,957 | 984 | 301,160 | |||||||||||||||
Federal Reserve Bank and FHLB stock, at cost
|
10,974 | 10,974 | - | - | 10,974 | |||||||||||||||
Loans held for sale, net
|
3,643 | - | 3,643 | - | 3,643 | |||||||||||||||
Loans held for investment, net
|
933,834 | - | - | 1,004,001 | 1,004,001 | |||||||||||||||
Accrued interest receivable
|
4,898 | 4,898 | - | - | 4,898 | |||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposit accounts
|
1,185,719 | 835,196 | 351,462 | - | 1,186,658 | |||||||||||||||
Other borrowings
|
44,191 | - | 47,463 | - | 47,463 | |||||||||||||||
Subordinated debentures
|
10,310 | - | 4,865 | - | 4,865 | |||||||||||||||
Accrued interest payable
|
213 | 213 | - | - | 213 | |||||||||||||||
Notional Amount
|
Level 1 | Level 2 | Level 3 |
Cost to Cede
or Assume
|
||||||||||||||||
Off-balance sheet commitments and standby letters of credit
|
$ | 236,720 | $ | - | $ | 23,672 | $ | - | $ | 23,672 | ||||||||||
At December 31, 2012
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Estimated
Fair Value
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 59,352 | $ | 59,352 | $ | - | $ | - | $ | 59,352 | ||||||||||
Securities available for sale
|
84,066 | 81,042 | 2,072 | 952 | 84,066 | |||||||||||||||
Federal Reserve Bank and FHLB stock, at cost
|
11,247 | 11,247 | - | - | 11,247 | |||||||||||||||
Loans held for sale, net
|
3,681 | - | 3,681 | - | 3,681 | |||||||||||||||
Loans held for investment, net
|
974,213 | - | - | 1,049,589 | 1,049,589 | |||||||||||||||
Accrued interest receivable
|
4,126 | 4,126 | - | - | 4,126 | |||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposit accounts
|
904,768 | 548,101 | 363,382 | - | 911,483 | |||||||||||||||
FHLB advances
|
87,000 | 87,000 | - | - | 87,000 | |||||||||||||||
Other borrowings
|
28,500 | - | 31,267 | - | 31,267 | |||||||||||||||
Subordinated debentures
|
10,310 | - | 4,973 | - | 4,973 | |||||||||||||||
Accrued interest payable
|
142 | 142 | - | - | 142 | |||||||||||||||
Notional Amount
|
Level 1 | Level 2 | Level 3 |
Cost to Cede
or Assume
|
||||||||||||||||
Off-balance sheet commitments and standby letters of credit
|
$ | 131,450 | $ | - | $ | 13,145 | $ | - | $ | 13,145 | ||||||||||
At March 31, 2012
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Estimated
Fair Value
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 93,649 | $ | 93,649 | $ | - | $ | - | $ | 93,649 | ||||||||||
Securities available for sale
|
150,739 | 146,875 | 2,898 | 966 | 150,739 | |||||||||||||||
Federal Reserve Bank and FHLB stock, at cost
|
11,975 | 11,975 | - | - | 11,975 | |||||||||||||||
Loans held for sale, net
|
62 | - | 62 | - | 62 | |||||||||||||||
Loans held for investment, net
|
687,079 | - | - | 758,893 | 758,893 | |||||||||||||||
Accrued interest receivable
|
3,632 | 3,632 | - | - | 3,632 | |||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposit accounts
|
846,717 | 436,064 | 413,314 | - | 849,378 | |||||||||||||||
FHLB advances
|
- | - | - | - | - | |||||||||||||||
Other borrowings
|
28,500 | - | 31,964 | - | 31,964 | |||||||||||||||
Subordinated debentures
|
10,310 | - | 7,617 | - | 7,617 | |||||||||||||||
Accrued interest payable
|
181 | 181 | - | - | 181 | |||||||||||||||
Notional Amount
|
Level 1 | Level 2 | Level 3 |
Cost to Cede
or Assume
|
||||||||||||||||
Off-balance sheet commitments and standby letters of credit
|
$ | 105,011 | $ | - | $ | 10,501 | $ | - | $ | 10,501 |
March 31, 2013
|
||||||||||||||||
Fair Value Measurement Using
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Securities at
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities available for sale:
|
|
|||||||||||||||
U.S. Treasury
|
$ | 85 | $ | - | $ | - | $ | 85 | ||||||||
Municipal bonds
|
- | 155,939 | - | 155,939 | ||||||||||||
Mortgage-backed securities
|
142,134 | 2,018 | 984 | 145,136 | ||||||||||||
Total securities available for sale
|
$ | 142,219 | $ | 157,957 | $ | 984 | $ | 301,160 | ||||||||
Stock:
|
||||||||||||||||
FHLB stock
|
$ | 8,955 | $ | - | $ | - | $ | 8,955 | ||||||||
Federal Reserve Bank stock
|
2,019 | - | - | 2,019 | ||||||||||||
Total stock
|
$ | 10,974 | $ | - | $ | - | $ | 10,974 | ||||||||
Total securities
|
$ | 153,193 | $ | 157,957 | $ | 984 | $ | 312,134 | ||||||||
March 31, 2012
|
||||||||||||||||
Fair Value Measurement Using
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Securities at
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
U.S. Treasury
|
$ | 160 | $ | - | $ | - | $ | 160 | ||||||||
Corporate
|
4,817 | - | - | 4,817 | ||||||||||||
Municipal bonds
|
27,695 | - | - | 27,695 | ||||||||||||
Mortgage-backed securities
|
114,203 | 2,898 | 966 | 118,067 | ||||||||||||
Total securities available for sale
|
$ | 146,875 | $ | 2,898 | $ | 966 | $ | 150,739 | ||||||||
Stock:
|
||||||||||||||||
FHLB stock
|
$ | 9,956 | $ | - | $ | - | $ | 9,956 | ||||||||
Federal Reserve Bank stock
|
2,019 | - | - | 2,019 | ||||||||||||
Total stock
|
$ | 11,975 | $ | - | $ | - | $ | 11,975 | ||||||||
Total securities
|
$ | 158,850 | $ | 2,898 | $ | 966 | $ | 162,714 |
Three Months Ended
|
||||||||
March 31, 2013
|
March 31, 2012
|
|||||||
(in thousands)
|
||||||||
Balance, beginning of period
|
$ | 952 | $ | 991 | ||||
Total gains or (losses) realized/unrealized:
|
||||||||
Included in earnings (or changes in net assets)
|
(30 | ) | (47 | ) | ||||
Included in other comprehensive income
|
117 | 113 | ||||||
Purchases, issuances, and settlements
|
(55 | ) | (71 | ) | ||||
Transfer in and/or out of Level 3
|
- | (20 | ) | |||||
Balance, end of period
|
$ | 984 | $ | 966 |
March 31, 2013
|
||||||||||||||||
Fair Value Measurement Using
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Assets at
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 3,752 | $ | 3,752 | ||||||||
Loans held for sale
|
- | 3,643 | - | 3,643 | ||||||||||||
Other real estate owned
|
- | 1,561 | - | 1,561 | ||||||||||||
Total assets
|
$ | - | $ | 5,204 | $ | 3,752 | $ | 8,956 | ||||||||
March 31, 2012
|
||||||||||||||||
Fair Value Measurement Using
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Assets at
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 4,628 | $ | 4,628 | ||||||||
Loans held for sale
|
- | 62 | - | 62 | ||||||||||||
Other real estate owned
|
- | 1,768 | - | 1,768 | ||||||||||||
Total assets
|
$ | - | $ | 1,830 | $ | 4,628 | $ | 6,458 |
●
|
The strength of the United States economy in general and the strength of the local economies in which we conduct operations;
|
●
|
The effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve”);
|
●
|
Inflation/deflation, interest rate, market and monetary fluctuations;
|
●
|
The timely development of competitive new products and services and the acceptance of these products and services by new and existing customers;
|
●
|
The willingness of users to substitute competitors’ products and services for our products and services;
|
●
|
The impact of changes in financial services policies, laws and regulations, including those concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies;
|
●
|
Technological changes;
|
●
|
The effect of the Palm Desert National Acquisition, the Canyon National Acquisition, the FAB Acquisition, the proposed acquisition of SDTB and other acquisitions we may make, if any, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions;
|
●
|
Changes in the level of our nonperforming assets and charge-offs;
|
●
|
Oversupply of inventory and continued deterioration in values of California real estate, both residential and commercial;
|
●
|
The effect of changes in accounting policies and practices, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the FASB or other accounting standards setters;
|
●
|
Possible other-than-temporary impairments (“OTTI”) of securities held by us;
|
●
|
The impact of current governmental efforts to restructure the United States financial regulatory system, including enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”);
|
●
|
Changes in consumer spending, borrowing and savings habits;
|
●
|
The effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations;
|
●
|
Ability to attract deposits and other sources of liquidity;
|
●
|
Changes in the financial performance and/or condition of our borrowers;
|
●
|
Changes in the competitive environment among financial and bank holding companies and other financial service providers;
|
●
|
Geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad;
|
●
|
Unanticipated regulatory or judicial proceedings; and
|
●
|
Our ability to manage the risks involved in the foregoing.
|
●
|
$223.0 million in investment securities, including FHLB and TIB Bank stock;
|
●
|
$124.7 million of cash and cash equivalents;
|
●
|
$26.4 million of loans;
|
●
|
$11.9 million in goodwill;
|
●
|
$6.2 million of other types of assets; and
|
●
|
$1.9 million of a core deposit intangible.
|
●
|
$329.5 million in deposit transaction accounts;
|
●
|
$17.4 million in retail certificates of deposit;
|
●
|
$9.9 million in wholesale deposits;
|
●
|
$16.9 million in other borrowings;
|
●
|
$3.9 million in deferred tax liability; and
|
●
|
$536,000 of other liabilities.
|
●
|
Interest income earned from average interest-earning assets and the resultant yields; and
|
●
|
Interest expense incurred from average interest-bearing liabilities and resultant costs, expressed as rates.
|
Average Balance Sheet
|
||||||||||||||||||||||||||||||||||||
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||||||||||||||||||||
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
||||||||||||||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||||||||||||
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
||||||||||||||||||||||||||||
Assets
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 69,143 | $ | 37 | 0.22 | % | $ | 41,867 | $ | 14 | 0.13 | % | $ | 96,177 | $ | 50 | 0.21 | % | ||||||||||||||||||
Federal funds sold
|
27 | - | 0.00 | % | 27 | - | 0.00 | % | 28 | - | 0.00 | % | ||||||||||||||||||||||||
Investment securities
|
134,895 | 802 | 2.38 | % | 120,787 | 668 | 2.21 | % | 136,216 | 829 | 2.43 | % | ||||||||||||||||||||||||
Loans receivable, net (1)
|
928,577 | 13,396 | 5.85 | % | 870,782 | 13,477 | 6.19 | % | 698,923 | 11,237 | 6.43 | % | ||||||||||||||||||||||||
Total interest-earning assets
|
1,132,642 | 14,235 | 5.09 | % | 1,033,463 | 14,159 | 5.48 | % | 931,344 | 12,116 | 5.20 | % | ||||||||||||||||||||||||
Noninterest-earning assets
|
38,911 | 43,352 | 40,861 | |||||||||||||||||||||||||||||||||
Total assets
|
$ | 1,171,553 | $ | 1,076,815 | $ | 972,205 | ||||||||||||||||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||||||||||||||
Deposit accounts:
|
||||||||||||||||||||||||||||||||||||
Noninterest-bearing
|
$ | 237,081 | $ | - | 0.00 | % | $ | 217,436 | $ | - | 0.00 | % | $ | 118,545 | $ | - | 0.00 | % | ||||||||||||||||||
Interest-bearing:
|
||||||||||||||||||||||||||||||||||||
Transaction accounts
|
379,638 | 218 | 0.23 | % | 305,364 | 243 | 0.32 | % | 295,415 | 329 | 0.45 | % | ||||||||||||||||||||||||
Retail certificates of deposit
|
349,471 | 800 | 0.93 | % | 378,068 | 963 | 1.01 | % | 423,635 | 1,427 | 1.35 | % | ||||||||||||||||||||||||
Wholesale certificates of deposit
|
833 | 1 | 0.49 | % | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||||||||||
Total deposits
|
967,023 | 1,019 | 0.43 | % | 900,868 | 1,206 | 0.53 | % | 837,595 | 1,756 | 0.84 | % | ||||||||||||||||||||||||
FHLB advances and other borrowings
|
44,769 | 240 | 2.17 | % | 50,576 | 253 | 1.99 | % | 28,566 | 235 | 3.32 | % | ||||||||||||||||||||||||
Subordinated debentures
|
10,310 | 77 | 3.03 | % | 10,310 | 79 | 3.05 | % | 10,310 | 84 | 3.29 | % | ||||||||||||||||||||||||
Total borrowings
|
55,079 | 317 | 2.33 | % | 60,886 | 332 | 2.17 | % | 38,876 | 319 | 3.31 | % | ||||||||||||||||||||||||
Total deposits and borrowings
|
1,022,102 | 1,336 | 0.53 | % | 961,754 | 1,538 | 0.64 | % | 876,471 | 2,075 | 0.95 | % | ||||||||||||||||||||||||
Other liabilities
|
9,766 | 6,725 | 7,752 | |||||||||||||||||||||||||||||||||
Total liabilities
|
1,031,868 | 968,479 | 884,223 | |||||||||||||||||||||||||||||||||
Stockholders' equity
|
139,685 | 108,336 | 87,982 | |||||||||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 1,171,553 | $ | 1,076,815 | $ | 972,205 | ||||||||||||||||||||||||||||||
Net interest income
|
$ | 12,899 | $ | 12,621 | $ | 10,041 | ||||||||||||||||||||||||||||||
Net interest rate spread (2)
|
4.56 | % | 4.84 | % | 4.25 | % | ||||||||||||||||||||||||||||||
Net interest margin (3)
|
4.62 | % | 4.88 | % | 4.31 | % | ||||||||||||||||||||||||||||||
Ratio of interest-earning assets to deposits and borrowings
|
110.81 | % | 107.46 | % | 106.26 | % |
(1)
|
Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums, and ALLL.
|
(2)
|
Represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
|
(3)
|
Represents net interest income divided by average interest-earning assets.
|
●
|
Changes in interest rates (changes in interest rates multiplied by prior volume);
|
●
|
Changes in volume (changes in volume multiplied by prior rate); and
|
●
|
The net change or the combined impact of volume and rate changes allocated proportionately to changes in volume and changes in interest rates.
|
Three Months Ended March 31, 2013
|
||||||||||||
Compared to
|
||||||||||||
Three Months Ended March 31, 2012
|
||||||||||||
Increase (decrease) due to
|
||||||||||||
Rate
|
Volume
|
Net
|
||||||||||
(in thousands)
|
||||||||||||
Interest-earning assets
|
||||||||||||
Cash and cash equivalents
|
$ | 2 | $ | (15 | ) | $ | (13 | ) | ||||
Investment securities
|
(19 | ) | (8 | ) | (27 | ) | ||||||
Loans receivable, net
|
(1,243 | ) | 3,402 | 2,159 | ||||||||
Total interest-earning assets
|
$ | (1,260 | ) | $ | 3,379 | $ | 2,119 | |||||
Interest-bearing liabilities
|
||||||||||||
Transaction accounts
|
$ | (189 | ) | $ | 78 | $ | (111 | ) | ||||
Retail certificates of deposit
|
(404 | ) | (223 | ) | (627 | ) | ||||||
Wholesale/brokered certificates of deposit
|
- | 1 | 1 | |||||||||
FHLB advances and other borrowings
|
(100 | ) | 105 | 5 | ||||||||
Subordinated debentures
|
(7 | ) | - | (7 | ) | |||||||
Total interest-bearing liabilities
|
$ | (700 | ) | $ | (39 | ) | $ | (739 | ) | |||
Change in net interest income
|
$ | (560 | ) | $ | 3,418 | $ | 2,858 |
●
|
Compensation and benefits costs of $1.6 million primarily from increased employee count from acquisitions and business expansion, as we added employees in lending and credit areas to increase our production of commercial and industrial (“C&I”) loans, commercial real estate (“CRE”) loans, SBA loans, homeowner association (“HOA”) loans, warehouse facilities and a construction loan manager to oversee the origination of construction loans; health care expense and employer payroll taxes;
|
●
|
Premises and occupancy costs of $415,000 primarily related to rental expense of our new corporate headquarters needed for business expansion;
|
●
|
Other expense of $393,000 primarily due to acquisition and business expansion and a higher provision for off-balance sheet commitment expenses of $96,000 and HOA management company fees of $65,000; and
|
●
|
Data processing and communications costs of $268,000, primarily related to acquisition and business expansion initiatives over the past year.
|
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
|||||||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
|||||||||||||||||||||||||||||||
Percent
|
Average
|
Percent
|
Average
|
Percent
|
Average
|
||||||||||||||||||||||||||||
Amount
|
of Total
|
Interest Rate
|
Amount
|
of Total
|
Interest Rate
|
Amount
|
of Total
|
Interest Rate
|
|||||||||||||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Business loans:
|
|||||||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 140,592 | 14.9 | % | 5.16 | % | $ | 115,354 | 11.7 | % | 5.25 | % | $ | 83,947 | 12.1 | % | 5.73 | % | |||||||||||||||
Commercial owner occupied (1)
|
166,571 | 17.6 | % | 5.90 | % | 150,934 | 15.3 | % | 6.11 | % | 146,904 | 21.1 | % | 6.46 | % | ||||||||||||||||||
SBA
|
5,116 | 0.5 | % | 6.04 | % | 6,882 | 0.7 | % | 6.04 | % | 3,948 | 0.6 | % | 6.06 | % | ||||||||||||||||||
Warehouse facilities
|
138,935 | 14.7 | % | 4.79 | % | 195,761 | 19.9 | % | 4.80 | % | 44,246 | 6.4 | % | 5.40 | % | ||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||||||||||||||||
Commercial non-owner occupied
|
256,015 | 27.1 | % | 5.59 | % | 253,409 | 25.6 | % | 5.68 | % | 168,672 | 24.2 | % | 6.34 | % | ||||||||||||||||||
Multi-family
|
139,100 | 14.7 | % | 5.69 | % | 156,424 | 15.9 | % | 5.78 | % | 185,367 | 26.6 | % | 5.99 | % | ||||||||||||||||||
One-to-four family (2)
|
87,109 | 9.2 | % | 4.67 | % | 97,463 | 9.9 | % | 4.67 | % | 52,280 | 7.5 | % | 5.11 | % | ||||||||||||||||||
Construction
|
- | 0.0 | % | 0.00 | % | - | 0.0 | % | 0.00 | % | - | 0.0 | % | 0.00 | % | ||||||||||||||||||
Land
|
7,863 | 0.8 | % | 4.83 | % | 8,774 | 0.9 | % | 4.89 | % | 7,246 | 1.0 | % | 5.26 | % | ||||||||||||||||||
Other loans
|
4,690 | 0.5 | % | 6.09 | % | 1,193 | 0.1 | % | 6.20 | % | 3,139 | 0.5 | % | 7.46 | % | ||||||||||||||||||
Total gross loans (3)
|
945,991 | 100.0 | % | 5.30 | % | 986,194 | 100.0 | % | 5.44 | % | 695,749 | 100.0 | % | 6.04 | % | ||||||||||||||||||
Less loans held for sale
|
3,643 | 3,681 | 62 | ||||||||||||||||||||||||||||||
Total gross loans held for investment
|
942,348 | 982,513 | 695,687 | ||||||||||||||||||||||||||||||
Less:
|
|||||||||||||||||||||||||||||||||
Deferred loan origination costs/(fees) and premiums/(discounts)
|
(520 | ) | (306 | ) | (492 | ) | |||||||||||||||||||||||||||
Allowance for loan losses
|
(7,994 | ) | (7,994 | ) | (8,116 | ) | |||||||||||||||||||||||||||
Loans held for investment, net
|
$ | 933,834 | $ | 974,213 | $ | 687,079 | |||||||||||||||||||||||||||
(1) Majority secured by real estate.
|
|||||||||||||||||||||||||||||||||
(2) Includes second trust deeds.
|
|||||||||||||||||||||||||||||||||
(3) Total gross loans for March 31, 2013 is net of the mark-to-market discounts on Canyon National loans of $2.7 million, on Palm Desert National loans of $4.7 million, and on FAB loans of $157,000.
|
Three Months Ended
|
||||||||
March 31, 2013
|
March 31, 2012
|
|||||||
(in thousands)
|
||||||||
Beginning balance gross loans
|
$ | 986,194 | $ | 739,254 | ||||
Loans originated:
|
||||||||
Business loans:
|
||||||||
Commercial and industrial
|
12,133 | 8,266 | ||||||
Commercial owner occupied (1)
|
3,582 | 4,347 | ||||||
SBA
|
4,373 | 769 | ||||||
Warehouse facilities
|
42,710 | 11,200 | ||||||
Real estate loans:
|
||||||||
Commercial non-owner occupied
|
25,970 | 3,953 | ||||||
Multi-family
|
783 | 2,575 | ||||||
One-to-four family (2)
|
180 | 62 | ||||||
Other loans
|
106 | 439 | ||||||
Total loans originated
|
89,837 | 31,611 | ||||||
Loans purchased:
|
||||||||
Business loans:
|
||||||||
Commercial and industrial
|
26,421 | - | ||||||
Real estate loans:
|
||||||||
Commercial non-owner occupied
|
- | 1,694 | ||||||
Total loans purchased
|
26,421 | 1,694 | ||||||
Total loan production
|
116,258 | 33,305 | ||||||
Principal repayments
|
(45,244 | ) | (35,219 | ) | ||||
Sales of loans
|
(5,048 | ) | - | |||||
Change in undisbursed loan funds, net
|
(107,003 | ) | (40,077 | ) | ||||
Charge-offs
|
(480 | ) | (423 | ) | ||||
Change in mark-to-market discounts from FDIC transactions
|
1,314 | 752 | ||||||
Transfer to other real estate owned
|
- | (1,843 | ) | |||||
Net increase in gross loans
|
(40,203 | ) | (43,505 | ) | ||||
Ending balance gross loans
|
$ | 945,991 | $ | 695,749 | ||||
(1) Majority secured by real estate.
|
||||||||
(2) Includes second trust deeds.
|
March 31, 2013
|
||||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||
Number
|
Average
|
Average Months
|
||||||||||||||
Periods to Repricing
|
of Loans
|
Amount
|
Interest Rate
|
to Reprice
|
||||||||||||
(dollars in thousands)
|
||||||||||||||||
1 Year and less
|
877 | $ | 513,723 | 5.55 | % | 1.02 | ||||||||||
Over 1 Year to 3 Years
|
50 | 34,237 | 5.06 | % | 25.19 | |||||||||||
Over 3 Years to 5 Years
|
205 | 204,025 | 4.68 | % | 52.55 | |||||||||||
Over 5 Years to 7 Years
|
49 | 31,628 | 4.88 | % | 68.50 | |||||||||||
Over 7 Years to 10 Years
|
23 | 18,694 | 4.69 | % | 107.94 | |||||||||||
Total adjustable
|
1,204 | 802,307 | 5.26 | % | 20.30 | |||||||||||
Fixed
|
726 | 143,684 | 5.50 | % | ||||||||||||
Total
|
1,930 | $ | 945,991 | 5.30 | % |
30 - 59 Days
|
60 - 89 Days
|
90 Days or More (1)
|
Total
|
|||||||||||||||||||||||||||||
# of
Loans
|
Principal
Balance
of Loans
|
# of
Loans
|
Principal
Balance
of Loans
|
# of
Loans
|
Principal
Balance
of Loans
|
# of
Loans
|
Principal
Balance
of Loans
|
|||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||
At March 31, 2013
|
||||||||||||||||||||||||||||||||
Business loans:
|
||||||||||||||||||||||||||||||||
Commercial and industrial
|
1 | $ | 9 | - | $ | - | 1 | $ | 218 | 2 | $ | 227 | ||||||||||||||||||||
Commercial owner occupied
|
- | - | - | - | 1 | 245 | 1 | 245 | ||||||||||||||||||||||||
SBA
|
- | - | - | - | 1 | 72 | 1 | 72 | ||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
Commercial non-owner occupied
|
- | - | - | - | 1 | 1,337 | 1 | 1,337 | ||||||||||||||||||||||||
Multi-family
|
- | - | 1 | 1,047 | - | - | 1 | 1,047 | ||||||||||||||||||||||||
One-to-four family
|
2 | 49 | 1 | 30 | 1 | 9 | 4 | 88 | ||||||||||||||||||||||||
Total
|
3 | $ | 58 | 2 | $ | 1,077 | 5 | $ | 1,881 | 10 | $ | 3,016 | ||||||||||||||||||||
Delinquent loans to total gross loans
|
0.01 | % | 0.11 | % | 0.20 | % | 0.32 | % | ||||||||||||||||||||||||
At December 31, 2012
|
||||||||||||||||||||||||||||||||
Business loans:
|
||||||||||||||||||||||||||||||||
Commercial and industrial
|
- | $ | - | 1 | $ | 58 | 1 | $ | 218 | 2 | $ | 276 | ||||||||||||||||||||
Commercial owner occupied
|
- | - | 1 | 245 | - | - | 1 | 245 | ||||||||||||||||||||||||
SBA
|
- | - | - | - | 4 | 185 | 4 | 185 | ||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
One-to-four family
|
2 | 101 | - | - | 2 | 79 | 4 | 180 | ||||||||||||||||||||||||
Other
|
1 | 5 | - | - | - | - | 1 | 5 | ||||||||||||||||||||||||
Total
|
3 | $ | 106 | 2 | $ | 303 | 7 | $ | 482 | 12 | $ | 891 | ||||||||||||||||||||
Delinquent loans to total gross loans
|
0.01 | % | 0.03 | % | 0.05 | % | 0.09 | % | ||||||||||||||||||||||||
At March 31, 2012
|
||||||||||||||||||||||||||||||||
Business loans:
|
||||||||||||||||||||||||||||||||
Commercial and industrial
|
1 | $ | 10 | - | $ | - | - | $ | - | 1 | 10 | |||||||||||||||||||||
Commercial owner occupied
|
- | - | 1 | 478 | 2 | 846 | 3 | 1,324 | ||||||||||||||||||||||||
SBA
|
- | - | - | - | 7 | 513 | 7 | 513 | ||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
Commercial non-owner occupied
|
- | - | - | - | 1 | 185 | 1 | 185 | ||||||||||||||||||||||||
One-to-four family
|
- | - | 1 | 219 | 3 | 320 | 4 | 539 | ||||||||||||||||||||||||
Other
|
1 | 1 | - | - | - | - | 1 | 1 | ||||||||||||||||||||||||
Total
|
2 | $ | 11 | 2 | $ | 697 | 13 | $ | 1,864 | 17 | $ | 2,572 | ||||||||||||||||||||
Delinquent loans to total gross loans
|
0.00 | % | 0.10 | % | 0.27 | % | 0.37 | % | ||||||||||||||||||||||||
(1) All loans that are delinquent 90 days or more are on nonaccrual status and reported as part of nonperforming loans.
|
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
||||||||||||||||||||||||||||||||||
Allowance
|
% of Loans
|
Allowance
|
% of Loans
|
Allowance
|
% of Loans
|
|||||||||||||||||||||||||||||||
Balance at End of
|
as a % of
|
in Category to
|
as a % of
|
in Category to
|
as a % of
|
in Category to
|
||||||||||||||||||||||||||||||
Period Applicable to
|
Amount
|
Category Total
|
Total Loans
|
Amount
|
Category Total
|
Total Loans
|
Amount
|
Category Total
|
Total Loans
|
|||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Business loans:
|
||||||||||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 2,296 | 1.63 | % | 14.9 | % | $ | 1,310 | 1.14 | % | 11.7 | % | $ | 1,462 | 1.74 | % | 12.1 | % | ||||||||||||||||||
Commercial owner occupied
|
1,665 | 1.00 | % | 17.6 | % | 1,512 | 1.00 | % | 15.3 | % | 1,150 | 0.78 | % | 21.1 | % | |||||||||||||||||||||
SBA
|
50 | 0.98 | % | 0.5 | % | 79 | 1.15 | % | 0.7 | % | 171 | 4.33 | % | 0.6 | % | |||||||||||||||||||||
Warehouse facilities
|
730 | 0.53 | % | 14.7 | % | 1,544 | 0.79 | % | 19.9 | % | 771 | 1.74 | % | 6.4 | % | |||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied
|
1,403 | 0.55 | % | 27.1 | % | 1,459 | 0.58 | % | 25.6 | % | 1,501 | 0.89 | % | 24.2 | % | |||||||||||||||||||||
Multi-family
|
506 | 0.36 | % | 14.7 | % | 1,145 | 0.73 | % | 15.9 | % | 2,477 | 1.34 | % | 26.6 | % | |||||||||||||||||||||
One-to-four family
|
1,174 | 1.35 | % | 9.2 | % | 862 | 0.88 | % | 9.9 | % | 563 | 1.08 | % | 7.5 | % | |||||||||||||||||||||
Land
|
121 | 1.54 | % | 0.8 | % | 31 | 0.35 | % | 0.9 | % | - | 0.00 | % | 1.0 | % | |||||||||||||||||||||
Other Loans
|
49 | 1.04 | % | 0.5 | % | 52 | 4.36 | % | 0.1 | % | 21 | 0.67 | % | 0.5 | % | |||||||||||||||||||||
Total
|
$ | 7,994 | 0.85 | % | 100.0 | % | $ | 7,994 | 0.81 | % | 100.0 | % | $ | 8,116 | 1.17 | % | 100.0 | % |
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
(dollars in thousands)
|
||||||||
Balance, beginning of period
|
$ | 7,994 | $ | 8,522 | ||||
Provision for loan losses
|
296 | - | ||||||
Charge-offs:
|
||||||||
Business loans:
|
||||||||
Commercial and industrial
|
(58 | ) | (191 | ) | ||||
SBA
|
(5 | ) | (108 | ) | ||||
Real estate:
|
||||||||
Commercial non-owner occupied
|
(401 | ) | (1 | ) | ||||
One-to-four family
|
(10 | ) | (122 | ) | ||||
Other loans
|
(6 | ) | (1 | ) | ||||
Total charge-offs
|
(480 | ) | (423 | ) | ||||
Recoveries :
|
||||||||
Business loans:
|
||||||||
Commercial and industrial
|
7 | 1 | ||||||
SBA
|
19 | 11 | ||||||
Real estate:
|
||||||||
One-to-four family
|
43 | 1 | ||||||
Other loans
|
115 | 4 | ||||||
Total recoveries
|
184 | 17 | ||||||
Net loan charge-offs
|
(296 | ) | (406 | ) | ||||
Balance at end of period
|
$ | 7,994 | $ | 8,116 | ||||
Ratios:
|
||||||||
Net charge-offs to average total loans, net
|
0.13 | % | 0.23 | % | ||||
Allowance for loan losses to gross loans at end of period
|
0.85 | % | 1.17 | % |
March 31, 2013
|
||||||||||||||||
Amortized Cost
|
Unrealized
Gain
|
Unrealized
Loss
|
Estimated
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities available for sale:
|
|
|||||||||||||||
U.S. Treasury
|
$ | 74 | $ | 11 | $ | - | $ | 85 | ||||||||
Municipal bonds
|
154,543 | 1,783 | (387 | ) | 155,939 | |||||||||||
Mortgage-backed securities
|
143,882 | 1,821 | (567 | ) | 145,136 | |||||||||||
Total securities available for sale
|
298,499 | 3,615 | (954 | ) | 301,160 | |||||||||||
Stock:
|
||||||||||||||||
FHLB stock
|
$ | 8,955 | - | - | 8,955 | |||||||||||
Federal Reserve Bank stock
|
2,019 | - | - | 2,019 | ||||||||||||
Total stock
|
10,974 | - | - | 10,974 | ||||||||||||
Total securities
|
$ | 309,473 | $ | 3,615 | $ | (954 | ) | $ | 312,134 | |||||||
December 31, 2012
|
||||||||||||||||
Amortized Cost
|
Unrealized
Gain
|
Unrealized
Loss
|
Estimated
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
U.S. Treasury
|
$ | 147 | $ | 12 | $ | - | $ | 159 | ||||||||
Municipal bonds
|
25,401 | 1,186 | (1 | ) | 26,586 | |||||||||||
Mortgage-backed securities
|
56,641 | 1,162 | (482 | ) | 57,321 | |||||||||||
Total securities available for sale
|
82,189 | 2,360 | (483 | ) | 84,066 | |||||||||||
Stock:
|
||||||||||||||||
FHLB stock
|
9,228 | - | - | 9,228 | ||||||||||||
Federal Reserve Bank stock
|
2,019 | - | - | 2,019 | ||||||||||||
Total stock
|
11,247 | - | - | 11,247 | ||||||||||||
Total securities
|
$ | 93,436 | $ | 2,360 | $ | (483 | ) | $ | 95,313 | |||||||
March 31, 2012
|
||||||||||||||||
Amortized Cost
|
Unrealized
Gain
|
Unrealized
Loss
|
Estimated
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
U.S. Treasury
|
$ | 147 | $ | 13 | $ | - | $ | 160 | ||||||||
Corporate
|
5,000 | - | (183 | ) | 4,817 | |||||||||||
Municipal bonds
|
26,940 | 851 | (96 | ) | 27,695 | |||||||||||
Mortgage-backed securities
|
117,975 | 893 | (801 | ) | 118,067 | |||||||||||
Total securities available for sale
|
150,062 | 1,757 | (1,080 | ) | 150,739 | |||||||||||
Stock:
|
||||||||||||||||
FHLB stock
|
9,956 | - | - | 9,956 | ||||||||||||
Federal Reserve Bank stock
|
2,019 | - | - | 2,019 | ||||||||||||
Total stock
|
11,975 | - | - | 11,975 | ||||||||||||
Total securities
|
$ | 162,037 | $ | 1,757 | $ | (1,080 | ) | $ | 162,714 |
March 31, 2013
|
||||||||||||||||||||||||||||||||||||||||
One Year
|
More than One
|
More than Five Years
|
More than
|
|
||||||||||||||||||||||||||||||||||||
or Less
|
to Five Years
|
to Ten Years
|
Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Fair Value
|
Weighted Average Yield
|
Fair Value
|
Weighted Average Yield
|
Fair Value
|
Weighted Average Yield
|
Fair Value
|
Weighted Average Yield
|
Fair Value
|
Weighted Average Yield
|
|||||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||||||||||||||||||||||||||
U.S. Treasury
|
$ | - | 0.00 | % | $ | - | 0.00 | % | $ | 85 | 4.15 | % | $ | - | 0.00 | % | $ | 85 | 4.15 | % | ||||||||||||||||||||
Municipal bonds
|
- | 0.00 | % | 4,720 | 0.76 | % | 61,297 | 1.39 | % | 89,922 | 2.24 | % | 155,939 | 1.86 | % | |||||||||||||||||||||||||
Mortgage-backed securities
|
- | 0.00 | % | 24 | 5.58 | % | 13,102 | 1.07 | % | 132,010 | 1.68 | % | 145,136 | 1.62 | % | |||||||||||||||||||||||||
Total investment securities available for sale
|
- | 0.00 | % | 4,744 | 0.79 | % | 74,484 | 1.34 | % | 221,932 | 1.91 | % | 301,160 | 1.75 | % | |||||||||||||||||||||||||
Stock:
|
||||||||||||||||||||||||||||||||||||||||
FHLB
|
8,955 | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 8,955 | 0.00 | % | |||||||||||||||||||||||||
Federal Reserve Bank
|
2,019 | 6.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 2,019 | 6.00 | % | |||||||||||||||||||||||||
Total stock
|
10,974 | 1.10 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 10,974 | 1.10 | % | |||||||||||||||||||||||||
Total securities
|
$ | 10,974 | 1.10 | % | $ | 4,744 | 0.79 | % | $ | 74,484 | 1.34 | % | $ | 221,932 | 1.91 | % | $ | 312,134 | 1.73 | % |
●
|
An evaluation of the present value of estimated cash flows from the security using the current yield to accrete beneficial interest and including assumptions in the prepayment rate, default rate, delinquencies, loss severity and percentage of nonperforming assets;
|
●
|
An evaluation of the estimated payback period to recover principal;
|
●
|
An analysis of the credit support available in the underlying security to absorb losses; and
|
●
|
A review of the financial condition and near term prospects of the issuer.
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||||||||||
March 31, 2013
|
March 31, 2012
|
|||||||||||||||||||||||||||||||
Rating
|
Number
|
Fair Value
|
OTTI Credit Loss
|
Non Credit Gain (Loss) in Accumulated Other Compreheniseve Income (AOCI)
|
Number
|
Fair Value
|
OTTI Credit Loss
|
Non Credit Gain (Loss) in Accumulated Other Compreheniseve Income (AOCI)
|
||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||
D | 4 | $ | 446 | $ | 30 | $ | 95 | 5 | $ | 184 | $ | (37 | ) | $ | 50 | |||||||||||||||||
Total
|
4 | $ | 446 | $ | 30 | $ | 95 | 5 | $ | 184 | $ | (37 | ) | $ | 50 |
March 31,
|
December 31,
|
March 31,
|
||||||||||
2013
|
2012
|
2012
|
||||||||||
(dollars in thousands)
|
||||||||||||
Nonperforming assets
|
||||||||||||
Business loans:
|
||||||||||||
Commercial and industrial
|
$ | 333 | $ | 347 | $ | 100 | ||||||
Commercial owner occupied
|
245 | 14 | 1,325 | |||||||||
SBA (1)
|
121 | 260 | 544 | |||||||||
Real estate:
|
||||||||||||
Commercial non-owner occupied
|
1,974 | 670 | 648 | |||||||||
Multi-family
|
- | 266 | 287 | |||||||||
One-to-four family
|
429 | 522 | 792 | |||||||||
Land
|
- | 127 | - | |||||||||
Total nonaccrual loans
|
3,102 | 2,206 | 3,696 | |||||||||
Other real estate owned:
|
||||||||||||
Commercial non-owner occupied
|
- | - | 720 | |||||||||
One-to-four family
|
- | - | 113 | |||||||||
Land
|
1,561 | 2,258 | 935 | |||||||||
Total other real estate owned
|
1,561 | 2,258 | 1,768 | |||||||||
Total nonperforming assets, net
|
$ | 4,663 | $ | 4,464 | $ | 5,464 | ||||||
Allowance for loan losses
|
$ | 7,994 | $ | 7,994 | $ | 8,116 | ||||||
Allowance for loan losses as a percent of
total nonperforming loans
|
257.70 | % | 362.38 | % | 219.59 | % | ||||||
Nonperforming loans as a percent of gross loans
|
0.33 | % | 0.22 | % | 0.53 | % | ||||||
Nonperforming assets as a percent of total assets
|
0.33 | % | 0.38 | % | 0.55 | % | ||||||
(1)The SBA totals include the guaranteed amount, which was $72,000 as of March 31, 2013, $185,000 as of December 31, 2012, and $237,000 as of March 31, 2012. |
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
||||||||||||||||||||||||||||||||||
Balance
|
% of Total Deposits
|
Weighted Average Rate
|
Balance
|
% of Total Deposits
|
Weighted Average Rate
|
Balance
|
% of Total Deposits
|
Weighted Average Rate
|
||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Transaction accounts:
|
||||||||||||||||||||||||||||||||||||
Noninterest bearing checking
|
$ | 316,536 | 26.7 | % | 0.00 | % | $ | 213,636 | 23.6 | % | 0.00 | % | $ | 125,448 | 14.8 | % | 0.00 | % | ||||||||||||||||||
Interest bearing checking
|
115,541 | 9.7 | % | 0.10 | % | 14,299 | 1.6 | % | 0.10 | % | 70,446 | 8.3 | % | 0.14 | % | |||||||||||||||||||||
Money market
|
323,709 | 27.3 | % | 0.28 | % | 236,206 | 26.1 | % | 0.32 | % | 148,515 | 17.5 | % | 0.36 | % | |||||||||||||||||||||
Regular passbook
|
80,578 | 6.8 | % | 0.15 | % | 79,420 | 8.8 | % | 0.22 | % | 92,191 | 10.9 | % | 0.32 | % | |||||||||||||||||||||
Total transaction accounts
|
836,364 | 70.5 | % | 0.13 | % | 543,561 | 60.1 | % | 0.19 | % | 436,600 | 51.5 | % | 0.21 | % | |||||||||||||||||||||
Certificates of deposit accounts:
|
||||||||||||||||||||||||||||||||||||
Less than 1.00%
|
164,843 | 13.9 | % | 0.55 | % | 147,813 | 16.3 | % | 0.58 | % | 110,963 | 13.1 | % | 0.71 | % | |||||||||||||||||||||
1.00 - 1.99 | 169,616 | 14.3 | % | 1.15 | % | 197,554 | 21.8 | % | 1.16 | % | 230,470 | 27.2 | % | 1.31 | % | |||||||||||||||||||||
2.00 - 2.99 | 12,560 | 1.1 | % | 2.80 | % | 13,439 | 1.5 | % | 2.78 | % | 64,453 | 7.6 | % | 2.23 | % | |||||||||||||||||||||
3.00 - 3.99 | 1,144 | 0.1 | % | 3.44 | % | 1,130 | 0.1 | % | 3.44 | % | 1,322 | 0.2 | % | 3.45 | % | |||||||||||||||||||||
4.00 - 4.99 | 288 | 0.0 | % | 4.24 | % | 395 | 0.1 | % | 4.29 | % | 1,384 | 0.2 | % | 4.47 | % | |||||||||||||||||||||
5.00 and greater
|
904 | 0.1 | % | 5.26 | % | 876 | 0.1 | % | 5.27 | % | 1,525 | 0.2 | % | 5.25 | % | |||||||||||||||||||||
Total certificates of deposit accounts
|
349,355 | 29.5 | % | 0.94 | % | 361,207 | 39.9 | % | 1.00 | % | 410,117 | 48.5 | % | 1.32 | % | |||||||||||||||||||||
Total deposits
|
$ | 1,185,719 | 100.0 | % | 0.37 | % | $ | 904,768 | 100.0 | % | 0.51 | % | $ | 846,717 | 100.0 | % | 0.75 | % |
●
|
Three reverse repurchase agreements totaling $28.5 million at a weighted average rate of 3.26% and secured by approximately $42.5 million of GSE MBS;
|
●
|
HOA reverse repurchase agreements totaling $15.7 million at a weighted average rate of 0.02%; and
|
●
|
Subordinated Debentures used to fund the issuance of Trust Preferred Securities in 2004 of $10.3 million with a rate of 3.05%. For additional information about the Subordinated Debentures and Trust Preferred Securities, see Note 7 to the Consolidated Financial Statements in this report.
|
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
||||||||||||||||||||||
Balance
|
Weighted Average Rate
|
Balance
|
Weighted Average Rate
|
Balance
|
Weighted Average Rate
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
FHLB advances
|
$ | - | 0.00 | % | $ | 87,000 | 0.28 | % | $ | - | 0.00 | % | ||||||||||||
Reverse repurchase agreements
|
44,191 | 2.11 | % | 28,500 | 3.26 | % | 28,500 | 3.26 | % | |||||||||||||||
Subordinated debentures
|
10,310 | 3.05 | % | 10,310 | 3.09 | % | 10,310 | 3.32 | % | |||||||||||||||
Total borrowings
|
$ | 54,501 | 2.29 | % | $ | 125,810 | 1.19 | % | $ | 38,810 | 3.28 | % | ||||||||||||
Weighted average cost of
borrowings during the quarter
|
2.33 | % | 3.24 | % | 3.31 | % | ||||||||||||||||||
Borrowings as a percent of total assets
|
3.9 | % | 10.7 | % | 3.9 | % |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
|
||||||||||||
GAAP Reconciliation
|
||||||||||||
(dollars in thousands)
|
||||||||||||
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
||||||||||
Total stockholders' equity
|
$ | 157,589 | $ | 134,517 | $ | 89,479 | ||||||
Less: Intangible assets
|
(16,317 | ) | (2,626 | ) | (2,013 | ) | ||||||
Tangible common equity
|
$ | 141,272 | $ | 131,891 | $ | 87,466 | ||||||
Total assets
|
$ | 1,406,655 | $ | 1,173,792 | $ | 985,171 | ||||||
Less: Intangible assets
|
(16,317 | ) | (2,626 | ) | (2,013 | ) | ||||||
Tangible assets
|
$ | 1,390,338 | $ | 1,171,166 | $ | 983,158 | ||||||
Tangible common equity ratio
|
10.16 | % | 11.26 | % | 8.90 | % |
●
|
Cash of $167.7 million acquired from the FAB;
|
●
|
Net change of $107.0 million of undisbursed loan funds;
|
●
|
Proceeds of $51.0 million from the sale and principal payments on loans held for investment;
|
●
|
Principal payments of $5.8 million from securities available for sale; and
|
●
|
Net proceeds from the issuance of stock related to the underwriter’s over-allotment option of $4.7 million.
|
●
|
Purchase and originate loans held for investment of $89.8 million;
|
●
|
Repay FHLB advances and other borrowings of $88.2 million;
|
●
|
Absorb deposit outflows of $75.9 million; and
|
●
|
Cash disbursed in connection with the FAB Acquisition of $43.0 million.
|
March 31, 2013
|
||||||||||||||||||||
Less than 1 year
|
1 - 3 years
|
3 - 5 years
|
More than 5 years
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Contractual obligations
|
||||||||||||||||||||
FHLB advances
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Other borrowings
|
15,691 | - | - | 28,500 | 44,191 | |||||||||||||||
Subordinated debentures
|
- | - | - | 10,310 | 10,310 | |||||||||||||||
Certificates of deposit
|
268,322 | 73,288 | 2,016 | 5,729 | 349,355 | |||||||||||||||
Operating leases
|
1,823 | 7,001 | 7,709 | 6,787 | 23,320 | |||||||||||||||
Total contractual cash obligations
|
$ | 285,836 | $ | 80,289 | $ | 9,725 | $ | 51,326 | $ | 427,176 |
March 31, 2013
|
||||||||||||||||||||
Less than 1 year
|
1 - 3 years
|
3 - 5 years
|
More than 5 years
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Other unused commitments
|
||||||||||||||||||||
Home equity lines of credit
|
$ | - | $ | 316 | $ | 1,188 | $ | 3,404 | $ | 4,908 | ||||||||||
Commercial and industrial
|
25,594 | 12,054 | 560 | 15,683 | 53,891 | |||||||||||||||
Warehouse facilities
|
- | - | - | 174,945 | 174,945 | |||||||||||||||
Standby letters of credit
|
441 | 44 | - | - | 485 | |||||||||||||||
All other
|
45 | 50 | - | 2,396 | 2,491 | |||||||||||||||
Total commitments
|
$ | 26,080 | $ | 12,464 | $ | 1,748 | $ | 196,428 | $ | 236,720 |
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 March 31, 2013
|
||||||||||||||||||||||||
Tier 1 Capital (to adjusted tangible assets)
|
||||||||||||||||||||||||
Bank
|
$ | 145,642 | 12.55 | % | $ | 46,423 | 4.00 | % | $ | 58,029 | 5.00 | % | ||||||||||||
Consolidated
|
147,953 | 12.84 | % | 46,100 | 4.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 Risk-Based Capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank
|
145,642 | 14.43 | % | 40,362 | 4.00 | % | 60,543 | 6.00 | % | |||||||||||||||
Consolidated
|
147,953 | 14.61 | % | 40,500 | 4.00 | % | N/A | N/A | ||||||||||||||||
Total Capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank
|
153,636 | 15.23 | % | 80,724 | 8.00 | % | 100,905 | 10.00 | % | |||||||||||||||
Consolidated
|
155,947 | 15.40 | % | 81,000 | 8.00 | % | N/A | N/A | ||||||||||||||||
At December 31, 2012
|
||||||||||||||||||||||||
Tier 1 Capital (to adjusted tangible assets)
|
||||||||||||||||||||||||
Bank
|
$ | 129,055 | 12.07 | % | $ | 42,773 | 4.00 | % | $ | 53,466 | 5.00 | % | ||||||||||||
Consolidated
|
135,883 | 12.71 | % | 42,771 | 4.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 Risk-Based Capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank
|
129,055 | 12.99 | % | 39,750 | 4.00 | % | 59,625 | 6.00 | % | |||||||||||||||
Consolidated
|
135,883 | 13.61 | % | 39,924 | 4.00 | % | N/A | N/A | ||||||||||||||||
Total Capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank
|
137,049 | 13.79 | % | 79,500 | 8.00 | % | 99,375 | 10.00 | % | |||||||||||||||
Consolidated
|
144,004 | 14.43 | % | 79,848 | 8.00 | % | N/A | N/A | ||||||||||||||||
At March 31, 2012
|
||||||||||||||||||||||||
Tier 1 Capital (to adjusted tangible assets)
|
||||||||||||||||||||||||
Bank
|
$ | 91,643 | 9.49 | % | $ | 38,613 | 4.00 | % | $ | 48,267 | 5.00 | % | ||||||||||||
Consolidated
|
92,086 | 9.54 | % | 38,592 | 4.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 Risk-Based Capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank
|
91,643 | 12.54 | % | 29,238 | 4.00 | % | 43,857 | 6.00 | % | |||||||||||||||
Consolidated
|
92,086 | 12.53 | % | 29,403 | 4.00 | % | N/A | N/A | ||||||||||||||||
Total Capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank
|
99,759 | 13.65 | % | 58,477 | 8.00 | % | 73,096 | 10.00 | % | |||||||||||||||
Consolidated
|
100,306 | 13.65 | % | 58,805 | 8.00 | % | N/A | N/A |
Exhibit 2
|
Agreement and Plan of Reorganization, dated March 5, 2013, among Pacific Premier Bancorp, Inc., Pacific Premier Bank and San Diego Trust Bank (1)
|
|
Exhibit 10.1
|
Form of Shareholder Agreement among Pacific Premier Bancorp, Inc., San Diego Trust Bank, and certain shareholders of San Diego Trust Bank (1)
|
|
Exhibit 31.1
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15(d)-14(a) under the Securities Exchange Act of 1934, as amended
|
|
Exhibit 31.2
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15(d)-14(a) under the Securities Exchange Act of 1934, as amended
|
|
Exhibit 32
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002
|
|
Exhibit 101.INS
|
XBRL Instance Document (2)
|
|
Exhibit 101.SCH
|
XBRL Taxonomy Extension Schema Document (2)
|
|
Exhibit 101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (2)
|
|
Exhibit 101.DEF
|
XBRL Taxonomy Extension Definitions Linkbase Document (2)
|
|
Exhibit 101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (2)
|
|
Exhibit 101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (2)
|
May 10, 2013
|
By:
|
/s/ Steven R. Gardner
|
Date
|
Steven R. Gardner
|
|
President and Chief Executive Officer
|
||
(principal executive officer)
|
||
May 10, 2013
|
By:
|
/s/ Kent J. Smith
|
Date
|
Kent J. Smith
|
|
Executive Vice President and Chief Financial Officer
|
||
(principal financial and accounting officer)
|
|
Index to Exhibits
|
Exhibit 2
|
Agreement and Plan of Reorganization, dated March 5, 2013, among Pacific Premier Bancorp, Inc., Pacific Premier Bank and San Diego Trust Bank (1)
|
|
Exhibit 10.1
|
Form of Shareholder Agreement among Pacific Premier Bancorp, Inc., San Diego Trust Bank, and certain shareholders of San Diego Trust Bank (1)
|
|
Exhibit 31.1
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15(d)-14(a) under the Securities Exchange Act of 1934, as amended
|
|
Exhibit 31.2
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15(d)-14(a) under the Securities Exchange Act of 1934, as amended
|
|
Exhibit 32
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002
|
|
Exhibit 101.INS
|
XBRL Instance Document (2)
|
|
Exhibit 101.SCH
|
XBRL Taxonomy Extension Schema Document (2)
|
|
Exhibit 101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (2)
|
|
Exhibit 101.DEF
|
XBRL Taxonomy Extension Definitions Linkbase Document (2)
|
|
Exhibit 101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (2)
|
|
Exhibit 101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (2)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Pacific Premier Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
May 10, 2013
|
/s/ Steven R. Gardner
|
|
Steven R. Gardner
|
|||
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Pacific Premier Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Dated:
|
May 10, 2013
|
/s/ Kent J. Smith
|
|
Kent J. Smith
|
|||
Executive Vice President and Chief Financial Officer
|
a)
|
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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b)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Fair Value of Financial Instruments (Details 4) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2012
|
---|---|---|---|
Fair Value Disclosures | |||
Impaired loans | $ 3,752 | $ 2,736 | $ 4,628 |
Other real estate owned | 1,561 | 2,258 | 1,768 |
Fair Value Measurement Using: Level 2
|
|||
Fair Value Disclosures | |||
Loans held for sale | 3,643 | 3,681 | 62 |
Non-recurring basis | Fair Value Measurement Using: Level 2
|
|||
Fair Value Disclosures | |||
Loans held for sale | 3,643 | 62 | |
Other real estate owned | 1,561 | 1,768 | |
Total assets | 5,204 | 1,830 | |
Non-recurring basis | Fair Value Measurement Using: Level 3
|
|||
Fair Value Disclosures | |||
Impaired loans | 3,752 | 4,628 | |
Total assets | 3,752 | 4,628 | |
Non-recurring basis | Assets at Fair Value
|
|||
Fair Value Disclosures | |||
Impaired loans | 3,752 | 4,628 | |
Loans held for sale | 3,643 | 62 | |
Other real estate owned | 1,561 | 1,768 | |
Total assets | $ 8,956 | $ 6,458 |
Fair Value of Financial Instruments (Details 2) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2012
|
---|---|---|---|
Investment securities available for sale: | |||
Total securities available for sale | $ 301,160 | $ 84,066 | $ 150,739 |
Stock: | |||
Federal Reserve Bank stock | 2,019 | 2,019 | 2,019 |
Total stock | 10,974 | 11,247 | 11,975 |
Total securities | 312,134 | 95,313 | 162,714 |
Fair Value Measurement Using: Level 1
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 142,219 | 81,042 | 146,875 |
Stock: | |||
Total stock | 10,974 | 11,247 | 11,975 |
Fair Value Measurement Using: Level 2
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 157,957 | 2,072 | 2,898 |
Fair Value Measurement Using: Level 3
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 984 | 952 | 966 |
Recurring basis | Fair Value Measurement Using: Level 1
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 142,219 | 146,875 | |
Stock: | |||
FHLB stock | 8,955 | 9,956 | |
Federal Reserve Bank stock | 2,019 | 2,019 | |
Total stock | 10,974 | 11,975 | |
Total securities | 153,193 | 158,850 | |
Recurring basis | Fair Value Measurement Using: Level 1 | U.S. Treasury
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 85 | 160 | |
Recurring basis | Fair Value Measurement Using: Level 1 | Corporate
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 4,817 | ||
Recurring basis | Fair Value Measurement Using: Level 1 | Municipal bonds
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 27,695 | ||
Recurring basis | Fair Value Measurement Using: Level 1 | Mortgage-backed securities
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 142,134 | 114,203 | |
Recurring basis | Fair Value Measurement Using: Level 2
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 157,957 | 2,898 | |
Stock: | |||
Total securities | 157,957 | 2,898 | |
Recurring basis | Fair Value Measurement Using: Level 2 | Municipal bonds
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 155,939 | ||
Recurring basis | Fair Value Measurement Using: Level 2 | Mortgage-backed securities
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 2,018 | 2,898 | |
Recurring basis | Fair Value Measurement Using: Level 3
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 984 | 966 | |
Stock: | |||
Total securities | 984 | 966 | |
Recurring basis | Fair Value Measurement Using: Level 3 | Mortgage-backed securities
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 984 | 966 | |
Recurring basis | Securities at Fair Value
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 301,160 | 150,739 | |
Stock: | |||
FHLB stock | 8,955 | 9,956 | |
Federal Reserve Bank stock | 2,019 | 2,019 | |
Total stock | 10,974 | 11,975 | |
Total securities | 312,134 | 162,714 | |
Recurring basis | Securities at Fair Value | U.S. Treasury
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 85 | 160 | |
Recurring basis | Securities at Fair Value | Corporate
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 4,817 | ||
Recurring basis | Securities at Fair Value | Municipal bonds
|
|||
Investment securities available for sale: | |||
Total securities available for sale | 155,939 | 27,695 | |
Recurring basis | Securities at Fair Value | Mortgage-backed securities
|
|||
Investment securities available for sale: | |||
Total securities available for sale | $ 145,136 | $ 118,067 |
Recently Issued Accounting Pronouncements
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | Note 2 — Recently Issued Accounting Pronouncements
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities”. ASU 2011-11 affects all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information is intended to enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. The amended guidance is effective for interim and annual periods beginning after January 1, 2013 and should be applied retrospectively to all periods presented. The adoption of the disclosure requirements had no impact on the Company’s consolidated financial statements.
In October 2012, the FASB issued ASU 2012-06, “Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution.” The amendments in this update clarify the applicable guidance for subsequently measuring an indemnification asset recognized as a result of a government-assisted acquisition of a financial institution. The update provides that changes in cash flows expected to be collected on the indemnification asset arising subsequent to initial recognition as a result of changes in cash flows expected to be collected on the related indemnified assets should be accounted for on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement. The Company is required to adopt this update prospectively for the quarter ending March 31, 2013. The requirements of the update are consistent with the Company’s existing accounting policy; therefore, adoption has no impact on the Company’s consolidated financial position, results of operations or cash flows.
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The Company is required to adopt this update prospectively for the quarter ending March 31, 2013. The update may result in revised disclosures in the Company’s financial statements but otherwise has no impact on the Company’s consolidated financial position, results of operations or cash flows. |