Loans Held for Investment (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of components of loans held for investment

	March 31, 2014			December 31, 2013			March 31, 2013
	(in thousands)
Business loans:
Commercial and industrial	$	271,877		$	187,035		$	140,592
Commercial owner occupied (1)	223,848			221,089			166,571
SBA	11,045			10,659			5,116
Warehouse facilities	81,033			87,517			138,935
Real estate loans:
Commercial non-owner occupied	333,490			333,544			256,015
Multi-family	223,200			233,689			139,100
One-to-four family (2)	141,469			145,235			87,109
Construction	29,857			13,040			—
Land	6,170			7,605			7,863
Other loans	3,480			3,839			4,690
Total gross loans (3)	1,325,469			1,243,252			945,991
Less loans held for sale, net	—			(3,147		)	(3,643		)
Total gross loans held for investment	1,325,469			1,240,105			942,348
Less:
Deferred loan origination costs (fees) and premiums (discounts), net	(97		)	18			(520		)
Allowance for loan losses	(8,685		)	(8,200		)	(7,994		)
Loans held for investment, net	$	1,316,687		$	1,231,923		$	933,834

(1) Majority secured by real estate.

(2) Includes second trust deeds.

(3) Total gross loans for March 31, 2014 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank (“Canyon National”) loans of $1.8 million, on Palm Desert National Bank (“Palm Desert National”) loans of $2.2 million, and on SDTB loans of $115,000 and (ii) the mark-to-market premium on FAB loans of $53,000.

Summary of Company's investment in purchased credit impaired loans

	March 31, 2014
	Canyon National		Palm Desert National		Total
	(in thousands)
Business loans:
Commercial and industrial	$	84	$	—	$	84
Commercial owner occupied	866		—		866
Real estate loans:
Commercial non-owner occupied	993		—		993
One-to-four family	—		14		14
Total purchase credit impaired	$	1,943	$	14	$	1,957

Summary of accretable yield on purchased credit impaired

	Three Months Ended
	March 31, 2014
	Canyon National			Palm Desert National		Total
	(in thousands)

Balance at the beginning of period	$	1,623		$	53	$	1,676
Accretion	(68		)	—		(68		)
Disposals and other	—			—		—
Change in accretable yield	—			—		—
Balance at the end of period	$	1,555		$	53	$	1,608

Summary of Company's investment in impaired loans

					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, 2014
Business loans:
Commercial and industrial	$	67	$	31	$	—	$	31	$	—	$	10	$	—
Commercial owner occupied	870		718		—		718		—		738		—
SBA	246		14		—		14		—		14		9
Real estate loans:
Commercial non-owner occupied	1,894		1,327		—		1,327		—		1,093		17
One-to-four family	639		593		274		319		104		602		17
Totals	$	3,716	$	2,683	$	274	$	2,409	$	104	$	2,457	$	43

					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, 2013
Business loans:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	255	$	17
Commercial owner occupied	872		747		—		747		—		177		66
SBA	246		14		—		14		—		70		28
Real estate loans:
Commercial non-owner occupied	1,202		983		28		955		1		984		68
Multi-family	—		—		—		—		—		108		2
One-to-four family	746		683		278		405		104		743		44
Totals	$	3,066	$	2,427	$	306	$	2,121	$	105	$	2,337	$	225

					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		502		322		360		858		26
Totals	$	4,691	$	3,752	$	783	$	2,969	$	616	$	3,468	$	74

Summary of additional detail on components of impaired loans

	March 31, 2014		December 31, 2013		March 31, 2013
	(in thousands)

Nonaccruing loans	$	2,497	$	2,239	$	3,055
Accruing loans	186		188		697
Total impaired loans	$	2,683	$	2,427	$	3,752

Summary of loan portfolio by the Company's internal risk grading system

	Credit Risk Grades
			Special				Total Gross
	Pass		Mention		Substandard		Loans
March 31, 2014	(in thousands)
Business loans:
Commercial and industrial	$	270,024	$	—	$	1,853	$	271,877
Commercial owner occupied	212,663		272		10,913		223,848
SBA	11,031		—		14		11,045
Warehouse facilities	81,033		—		—		81,033
Real estate loans:
Commercial non-owner occupied	328,645		—		4,845		333,490
Multi-family	222,178		508		514		223,200
One-to-four family	140,453		—		1,016		141,469
Construction	29,857		—		—		29,857
Land	6,170		—		—		6,170
Other loans	3,478		—		2		3,480
Totals	$	1,305,532	$	780	$	19,157	$	1,325,469

	Credit Risk Grades
			Special				Total Gross
	Pass		Mention		Substandard		Loans
December 31, 2013	(in thousands)
Business loans:
Commercial and industrial	$	184,247	$	12	$	2,776	$	187,035
Commercial owner occupied	207,872		1,217		12,000		221,089
SBA	10,659		—		—		10,659
Warehouse facilities	87,517		—		—		87,517
Real estate loans:
Commercial non-owner occupied	329,538		352		3,654		333,544
Multi-family	232,661		511		517		233,689
One-to-four family	144,152		—		1,083		145,235
Construction	13,040		—		—		13,040
Land	7,605		—		—		7,605
Other loans	3,834		—		5		3,839
Totals	$	1,221,125	$	2,092	$	20,035	$	1,243,252

	Credit Risk Grades
			Special				Total Gross
	Pass		Mention		Substandard		Loans
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

Schedule of delinquencies in the Company's loan portfolio

			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
March 31, 2014	(in thousands)
Business loans:
Commercial and industrial	$	271,845	$	—	$	32	$	—	$	271,877	$	31
Commercial owner occupied	223,402		—		—		446		223,848		864
SBA	10,985		46		—		14		11,045		14
Warehouse facilities	81,033		—		—		—		81,033		—
Real estate loans:
Commercial non-owner occupied	332,572		—		—		918		333,490		1,327
Multi-family	223,200		—		—		—		223,200		—
One-to-four family	141,348		72		—		49		141,469		438
Construction	29,857		—		—		—		29,857		—
Land	6,170		—		—		—		6,170		—
Other loans	3,480		—		—		—		3,480		—
Totals	$	1,323,892	$	118	$	32	$	1,427	$	1,325,469	$	2,674

			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
December 31, 2013	(in thousands)
Business loans:
Commercial and industrial	$	187,035	$	—	$	—	$	—	$	187,035	$	—
Commercial owner occupied	219,875		768		—		446		221,089		747
SBA	10,645		—		—		14		10,659		14
Warehouse facilities	87,517		—		—		—		87,517		—
Real estate loans:
Commercial non-owner occupied	332,984		—		—		560		333,544		983
Multi-family	233,689		—		—		—		233,689		—
One-to-four family	145,041		71		—		123		145,235		507
Construction	13,040		—		—		—		13,040		—
Land	7,605		—		—		—		7,605		—
Other loans	3,709		130		—		—		3,839		—
Totals	$	1,241,140	$	969	$	—	$	1,143	$	1,243,252	$	2,251

			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
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