Loans Held for Investment (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of components of loans held for investment

The following table sets forth the composition of our loan portfolio in dollar amounts at the dates indicated:



	June 30, 2015			December 31, 2014			June 30, 2014
	(in thousands)
Business loans:
Commercial and industrial	$	454,463		$	428,207		$	319,541
Commercial owner occupied (1)	382,537			210,995			216,784
SBA	50,306			28,404			15,115
Warehouse facilities	198,113			113,798			114,032
Real estate loans:
Commercial non-owner occupied	402,786			359,213			360,288
Multi-family	400,237			262,965			251,512
One-to-four family (2)	84,283			122,795			132,020
Construction	124,448			89,682			47,034
Land	16,339			9,088			6,271
Other loans	4,811			3,298			3,753
Total gross loans held for investment (3)	2,118,323			1,628,445			1,466,350
Deferred loan origination costs and premiums, net	237			177			418
Allowance for loan losses	(15,100		)	(12,200		)	(9,733		)
Loans held for investment, net	$	2,103,460		$	1,616,422		$	1,457,035

______________________________

(1) Majority secured by real estate.

(2) Includes second trust deeds.

(3) Total gross loans for June 30, 2015 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank ("Canyon National") loans of $1.1 million, on Palm Desert National Bank ("Palm Desert National") loans of $1.1 million, on San Diego Trust Bank ("SDTB") loans of $144,000, and on IDPK loans of $6.3 million and (ii) the mark-to-market premium on First Associations Bank ("FAB") loans of $24,000.

Summary of Company's investment in purchased credit impaired loans

The following table provides a summary of the Company’s investment in purchased credit impaired loans, acquired from Canyon National, Palm Desert National and IDPK, as of the period indicated:



	June 30, 2015
	Canyon National		Palm Desert National		IDPK		Total
	(in thousands)
Business loans:
Commercial and industrial	$	94	$	—	$	540	$	634
Commercial owner occupied	535		—		2,335		2,870
Real estate loans:
Commercial non-owner occupied	943		—		1,237		2,180
One-to-four family	—		—		92		92
Total purchase credit impaired	$	1,572	$	—	$	4,204	$	5,776

Summary of accretable yield on purchased credit impaired

The following table summarizes the accretable yield on the purchased credit impaired loans for the six months ended June 30, 2015:



	Six Months Ended
	June 30, 2015
	Canyon National			Palm Desert National			IDPK			Total
	(in thousands)
Balance at the beginning of period	$	1,351		$	52		$	—		$	1,403
Accretable yield at acquisition	—			—			602			602
Accretion	(106		)	—			(75		)	(181		)
Disposals and other	—			(52		)	(4		)	(56		)
Change in accretable yield	—			—			149			149
Balance at the end of period	$	1,245		$	—		$	672		$	1,917

Summary of Company's investment in impaired loans

The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated:



					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, 2015
Business loans:
Commercial and industrial	$	2,494	$	1,684	$	223	$	1,461	$	223	$	1,797	$	—
Commercial owner occupied	437		370		—		370		—		373		15
Real estate loans:
Commercial non-owner occupied	693		443		—		443		—		446		21
One-to-four family	215		206		—		206		—		222		10
Land	37		23		—		23		—		8		—
Totals	$	3,876	$	2,726	$	223	$	2,503	$	223	$	2,846	$	46



					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, 2014
Business loans:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	11	$	—
Commercial owner occupied	440		388		—		388		—		514		46
SBA	—		—		—		—		—		5		—
Real estate loans:
Commercial non-owner occupied	1,217		848		—		848		—		908		85
One-to-four family	256		236		—		236		—		440		17
Totals	$	1,913	$	1,472	$	—	$	1,472	$	—	$	1,878	$	148



					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

Summary of additional detail on components of impaired loans

The following table provides additional detail on the components of impaired loans at the period end indicated:



	June 30, 2015		December 31, 2014		June 30, 2014
	(in thousands)
Nonaccruing loans	$	2,471	$	1,290	$	1,345
Accruing loans	255		182		185
Total impaired loans	$	2,726	$	1,472	$	1,530

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

The following tables stratify the loan portfolio by the Company’s internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio as of the periods indicated:



	Credit Risk Grades
	Pass		Special Mention		Substandard		Total Gross Loans
June 30, 2015	(in thousands)
Business loans:
Commercial and industrial	$	449,461	$	267	$	4,735	$	454,463
Commercial owner occupied	370,185		678		11,674		382,537
SBA	50,306		—		—		50,306
Warehouse facilities	198,113		—		—		198,113
Real estate loans:
Commercial non-owner occupied	399,245		265		3,276		402,786
Multi-family	395,565		704		3,968		400,237
One-to-four family	83,671		—		612		84,283
Construction	124,448		—		—		124,448
Land	15,143		—		1,196		16,339
Other loans	4,401		—		410		4,811
Totals	$	2,090,538	$	1,914	$	25,871	$	2,118,323



	Credit Risk Grades
	Pass		Special Mention		Substandard		Total Gross Loans
December 31, 2014	(in thousands)
Business loans:
Commercial and industrial	$	426,379	$	—	$	1,828	$	428,207
Commercial owner occupied	202,390		—		8,605		210,995
SBA	28,132		272		—		28,404
Warehouse facilities	113,798		—		—		113,798
Real estate loans:
Commercial non-owner occupied	355,274		—		3,939		359,213
Multi-family	261,956		501		508		262,965
One-to-four family	122,146		—		649		122,795
Construction	89,682		—		—		89,682
Land	9,088		—		—		9,088
Other loans	3,298		—		—		3,298
Totals	$	1,612,143	$	773	$	15,529	$	1,628,445



	Credit Risk Grades
	Pass		Special Mention		Substandard		Total Gross 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

Schedule of delinquencies in the Company's loan portfolio

The following tables set forth delinquencies in the Company’s loan portfolio at the dates indicated:



			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
June 30, 2015	(in thousands)
Business loans:
Commercial and industrial	$	452,383	$	452	$	—	$	1,628	$	454,463	$	2,147
Commercial owner occupied	382,537		—		—		—		382,537		578
SBA	50,306		—		—		—		50,306		—
Warehouse facilities	198,113		—		—		—		198,113		—
Real estate loans:
Commercial non-owner occupied	402,297		489		—		—		402,786		1,454
Multi-family	400,237		—		—		—		400,237		—
One-to-four family	84,218		2		—		63		84,283		88
Construction	124,448		—		—		—		124,448		—
Land	16,316		—		—		23		16,339		23
Other loans	4,783		—		28		—		4,811		92
Totals	$	2,115,638	$	943	$	28	$	1,714	$	2,118,323	$	4,382



			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
December 31, 2014	(in thousands)
Business loans:
Commercial and industrial	$	428,183	$	—	$	24	$	—	$	428,207	$	—
Commercial owner occupied	210,995		—		—		—		210,995		514
SBA	28,404		—		—		—		28,404		—
Warehouse facilities	113,798		—		—		—		113,798		—
Real estate loans:
Commercial non-owner occupied	359,213		—		—		—		359,213		848
Multi-family	262,965		—		—		—		262,965		—
One-to-four family	122,722		19		—		54		122,795		82
Construction	89,682		—		—		—		89,682		—
Land	9,088		—		—		—		9,088		—
Other loans	3,297		1		—		—		3,298		—
Totals	$	1,628,347	$	20	$	24	$	54	$	1,628,445	$	1,444



			Days Past Due								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