Loans Held for Investment (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of components of loans held for investment

	September 30, 2014			December 31, 2013			September 30, 2013
	(in thousands)
Business loans:
Commercial and industrial	$	360,700		$	187,035		$	173,720
Commercial owner occupied (1)	237,996			221,089			222,162
SBA	20,482			10,659			6,455
Warehouse facilities	108,093			87,517			49,104
Real estate loans:
Commercial non-owner occupied	355,984			333,544			304,979
Multi-family	262,588			233,689			218,929
One-to-four family (2)	125,326			145,235			152,667
Construction	67,118			13,040			2,835
Land	6,103			7,605			7,371
Other loans	3,521			3,839			3,793
Total gross loans (3)	1,547,911			1,243,252			1,142,015
Less loans held for sale, net	—			3,147			3,176
Total gross loans held for investment	1,547,911			1,240,105			1,138,839
Deferred loan origination costs/(fees) and premiums/(discounts), net	93			18			130
Allowance for loan losses	(10,767		)	(8,200		)	(7,994		)
Loans held for investment, net	$	1,537,237		$	1,231,923		$	1,130,975

(1) Majority secured by real estate.

(2) Includes second trust deeds.

(3) Total gross loans for September 30, 2014 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank (“Canyon National”) loans of $1.5 million, on Palm Desert National Bank (“Palm Desert National”) loans of $1.7 million, and on SDTB loans of $145,000 and (ii) the mark-to-market premium on FAB loans of $31,000.

Summary of Company's investment in purchased credit impaired loans

	September 30, 2014
	Canyon National		Palm Desert National		Total
	(in thousands)
Business loans:
Commercial and industrial	$	92	$	—	$	92
Commercial owner occupied	555		—		555
Real estate loans:
Commercial non-owner occupied	971		—		971
One-to-four family	—		8		8
Total purchase credit impaired	$	1,618	$	8	$	1,626

Summary of accretable yield on purchased credit impaired

	Nine Months Ended
	September 30, 2014
	Canyon National			Palm Desert National			Total
	(in thousands)

Balance at the beginning of period	$	1,623		$	53		$	1,676
Accretion	(192		)	(1		)	(193		)
Disposals and other	(17		)	—			(17		)
Change in accretable yield	—			—			—
Balance at the end of period	$	1,414		$	52		$	1,466

Summary of Company's investment in impaired loans

	Contractual				Impaired Loans				Specific
September 30, 2014	Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
Business loans:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	15	$	—
Commercial owner occupied	441		398		—		398		—		555		41
SBA	—		—		—		—		—		6		—
Real estate loans:
Commercial non-owner occupied	1,221		883		—		883		—		924		65
One-to-four family	649		526		—		526		—		504		18
Totals	$	2,311	$	1,807	$	—	$	1,807	$	—	$	2,004	$	124

	Contractual				Impaired Loans				Specific
December 31, 2013	Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
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

	Contractual				Impaired Loans				Specific
September 30, 2013	Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
Business loans:
Commercial and industrial	$	186	$	68	$	—	$	68	$	—	$	326	$	71
Commercial owner occupied	—		—		—		—		—		153		18
SBA	246		14		—		14		—		60		16
Real estate loans:
Commercial non-owner occupied	527		437		—		437		—		983		157
Multi-family	—		—		—		—		—		144		2
One-to-four family	701		642		282		360		104		772		154
Totals	$	1,660	$	1,161	$	282	$	879	$	104	$	2,438	$	418

Summary of additional detail on components of impaired loans

	September 30, 2014		December 31, 2013		September 30, 2013
	(in thousands)
Nonaccruing loans	$	1,624	$	2,239	$	972
Accruing loans	183		188		189
Total impaired loans	$	1,807	$	2,427	$	1,161

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

	Credit Risk Grades
			Special				Total Gross
September 30, 2014	Pass		Mention		Substandard		Loans
	(in thousands)
Business loans:
Commercial and industrial	$	358,922	$	—	$	1,778	$	360,700
Commercial owner occupied	228,154		387		9,455		237,996
SBA	20,482		—		—		20,482
Warehouse facilities	108,093		—		—		108,093
Real estate loans:
Commercial non-owner occupied	351,614		—		4,370		355,984
Multi-family	261,574		504		510		262,588
One-to-four family	124,383		—		943		125,326
Construction	67,118		—		—		67,118
Land	6,103		—		—		6,103
Other loans	3,521		—		—		3,521
Totals	$	1,529,964	$	891	$	17,056	$	1,547,911

	Credit Risk Grades
			Special				Total Gross
December 31, 2013	Pass		Mention		Substandard		Loans
	(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
September 30, 2013	Pass		Mention		Substandard		Loans
	(in thousands)
Business loans:
Commercial and industrial	$	170,840	$	68	$	2,812	$	173,720
Commercial owner occupied	207,519		2,632		12,011		222,162
SBA	6,455		—		—		6,455
Warehouse facilities	49,104		—		—		49,104
Real estate loans:
Commercial non-owner occupied	299,940		355		4,684		304,979
Multi-family	217,897		513		519		218,929
One-to-four family	151,564		—		1,103		152,667
Construction	2,835		—		—		2,835
Land	7,371		—		—		7,371
Other loans	3,787		—		6		3,793
Totals	$	1,117,312	$	3,568	$	21,135	$	1,142,015

Schedule of delinquencies in the Company's loan portfolio

			Days Past Due								Non-
September 30, 2014	Current		30-59		60-89		90+		Total		Accruing
	(in thousands)
Business loans:
Commercial and industrial	$	360,700	$	—	$	—	$	—	$	360,700	$	—
Commercial owner occupied	237,996		—		—		—		237,996		528
SBA	20,439		—		43		—		20,482		—
Warehouse facilities	108,093		—		—		—		108,093		—
Real estate loans:
Commercial non-owner occupied	355,984		—		—		—		355,984		882
Multi-family	262,588		—		—		—		262,588		—
One-to-four family	124,963		20		—		343		125,326		372
Construction	67,118		—		—		—		67,118		—
Land	6,103		—		—		—		6,103		—
Other loans	3,521		—		—		—		3,521		—
Totals	$	1,547,505	$	20	$	43	$	343	$	1,547,911	$	1,782

			Days Past Due								Non-
December 31, 2013	Current		30-59		60-89		90+		Total		Accruing
	(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-
September 30, 2013	Current		30-59		60-89		90+		Total		Accruing
	(in thousands)
Business loans:
Commercial and industrial	$	173,478	$	163	$	79	$	—	$	173,720	$	78
Commercial owner occupied	222,162		—		—		—		222,162		—
SBA	6,312		—		129		14		6,455		142
Warehouse facilities	49,104		—		—		—		49,104		—
Real estate loans:
Commercial non-owner occupied	304,420		559		—		—		304,979		437
Multi-family	218,929		—		—		—		218,929		—
One-to-four family	152,570		—		—		97		152,667		496
Construction	2,835		—		—		—		2,835		—
Land	7,371		—		—		—		7,371		—
Other loans	3,785		2		6		—		3,793		—
Totals	$	1,140,966	$	724	$	214	$	111	$	1,142,015	$	1,153