Loans Held for Investment (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of components of loans held for investment

	June 30, 2014			December 31, 2013			June 30, 2013
	(in thousands)
Business loans:
Commercial and industrial	$	319,541		$	187,035		$	146,240
Commercial owner occupied (1)	216,784			221,089			201,802
SBA	15,115			10,659			5,820
Warehouse facilities	114,032			87,517			135,317
Real estate loans:
Commercial non-owner occupied	360,288			333,544			295,767
Multi-family	251,512			233,689			172,797
One-to-four family (2)	132,020			145,235			84,672
Construction	47,034			13,040			2,135
Land	6,271			7,605			10,438
Other loans	3,753			3,839			4,969
Total gross loans (3)	1,466,350			1,243,252			1,059,957
Less loans held for sale, net	—			(3,147		)	(3,617		)
Total gross loans held for investment	1,466,350			1,240,105			1,056,340
Less:
Deferred loan origination costs (fees) and premiums (discounts), net	418			18			(910		)
Allowance for loan losses	(9,733		)	(8,200		)	(7,994		)
Loans held for investment, net	$	1,457,035		$	1,231,923		$	1,047,436

(1) Majority secured by real estate.

(2) Includes second trust deeds.

(3) Total gross loans for June 30, 2014 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank (“Canyon National”) loans of $1.6 million, on Palm Desert National Bank (“Palm Desert National”) loans of $2.0 million, and on SDTB loans of $143,000 and (ii) the mark-to-market premium on FAB loans of $41,000.

Summary of Company's investment in purchased credit impaired loans

	June 30, 2014
	Canyon National		Palm Desert National		Total
	(in thousands)
Business loans:
Commercial and industrial	$	85	$	—	$	85
Commercial owner occupied	559		—		559
Real estate loans:
Commercial non-owner occupied	982		—		982
One-to-four family	—		11		11
Total purchase credit impaired	$	1,626	$	11	$	1,637

Summary of accretable yield on purchased credit impaired

	Six Months Ended
	June 30, 2014
	Canyon National			Palm Desert National			Total
	(in thousands)

Balance at the beginning of period	$	1,623		$	53		$	1,676
Accretion	(130		)	(1		)	(131		)
Disposals and other	(17		)	—			(17		)
Change in accretable yield	—			—			—
Balance at the end of period	$	1,476		$	52		$	1,528

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)
June 30, 2014
Business loans:
Commercial and industrial	$	59	$	24	$	—	$	24	$	—	$	18	$	—
Commercial owner occupied	444		417		—		417		—		627		25
SBA	—		—		—		—		—		9		—
Real estate loans:
Commercial non-owner occupied	708		514		—		514		—		938		21
One-to-four family	625		575		270		305		104		591		15
Totals	$	1,836	$	1,530	$	270	$	1,260	$	104	$	2,183	$	61

					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)
June 30, 2013
Business loans:
Commercial and industrial	$	423	$	308	$	233	$	76	$	233	$	454	$	19
Commercial owner occupied	—		—		—		—		—		122		—
SBA	—		—		—		—		—		84		1
Real estate loans:
Commercial non-owner occupied	531		450		—		450		—		1,254		3
Multi-family	1,046		1,035		—		1,035		—		217		2
One-to-four family	836		813		501		312		360		837		26
Totals	$	2,836	$	2,606	$	734	$	1,873	$	593	$	2,968	$	51

Summary of additional detail on components of impaired loans

	June 30, 2014		December 31, 2013		June 30, 2013
	(in thousands)

Nonaccruing loans	$	1,345	$	2,239	$	1,969
Accruing loans	185		188		637
Total impaired loans	$	1,530	$	2,427	$	2,606

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

	Credit Risk Grades
	Special		Total Gross
	Pass		Mention		Substandard		Loans
June 30, 2014	(in thousands)
Business loans:
Commercial and industrial	$	317,713	$	—	$	1,828	$	319,541
Commercial owner occupied	206,890		393		9,501		216,784
SBA	15,115		—		—		15,115
Warehouse facilities	114,032		—		—		114,032
Real estate loans:
Commercial non-owner occupied	355,878		—		4,410		360,288
Multi-family	250,494		506		512		251,512
One-to-four family	131,330		—		690		132,020
Construction	47,034		—		—		47,034
Land	6,271		—		—		6,271
Other loans	3,753		—		—		3,753
Totals	$	1,448,510	$	899	$	16,941	$	1,466,350

	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
June 30, 2013	(in thousands)
Business loans:
Commercial and industrial	$	143,034	$	88	$	3,118	$	146,240
Commercial owner occupied	186,271		2,298		13,233		201,802
SBA	5,820		—		—		5,820
Warehouse facilities	135,317		—		—		135,317
Real estate loans:
Commercial non-owner occupied	289,210		356		6,201		295,767
Multi-family	170,726		515		1,556		172,797
One-to-four family	83,395		—		1,277		84,672
Construction	2,135		—		—		2,135
Land	10,430		—		8		10,438
Other loans	4,960		—		9		4,969
Totals	$	1,031,298	$	3,257	$	25,402	$	1,059,957

Schedule of delinquencies in the Company's loan portfolio

			Days PastDue								Non-
	Current		30-59		60-89		90+		Total		Accruing
June 30, 2014	(in thousands)
Business loans:
Commercial and industrial	$	319,418	$	—	$	99	$	24	$	319,541	$	24
Commercial owner occupied	216,367		—		417		—		216,784		549
SBA	15,115		—		—		—		15,115		—
Warehouse facilities	114,032		—		—		—		114,032		—
Real estate loans:
Commercial non-owner occupied	360,288		—		—		—		360,288		910
Multi-family	251,512		—		—		—		251,512		—
One-to-four family	131,258		236		478		48		132,020		458
Construction	47,034		—		—		—		47,034		—
Land	6,271		—		—		—		6,271		—
Other loans	3,753		—		—		—		3,753		—
Totals	$	1,465,048	$	236	$	994	$	72	$	1,466,350	$	1,941

			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
June 30, 2013	(in thousands)
Business loans:
Commercial and industrial	$	146,000	$	7	$	233	$	—	$	146,240	$	96
Commercial owner occupied	201,162		640		—		—		201,802		—
SBA	5,795		—		25		—		5,820		—
Warehouse facilities	135,317		—		—		—		135,317		—
Real estate loans:
Commercial non-owner occupied	295,767		—		—		—		295,767		450
Multi-family	171,762		—		—		1,035		172,797		1,035
One-to-four family	84,290		22		322		38		84,672		451
Construction	2,135		—		—		—		2,135		—
Land	10,438		—		—		—		10,438		—
Other loans	4,969		—		—		—		4,969		—
Totals	$	1,057,635	$	669	$	580	$	1,073	$	1,059,957	$	2,032