Loans (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of components of loans held for investment

The following table presents the composition of the loan portfolio as of the dates indicated:



	For the Years Ended December 31,
	2015			2014
	(in thousands)
Business loans:
Commercial and industrial	$	309,741		$	228,979
Franchise	328,925			199,228
Commercial owner occupied	294,726			210,995
SBA	62,256			28,404
Warehouse facilities	143,200			113,798
Real estate loans:
Commercial non-owner occupied	421,583			359,213
Multi-family	429,003			262,965
One-to-four family	80,050			122,795
Construction	169,748			89,682
Land	18,340			9,088
Other loans	5,111			3,298
Total gross loans	2,262,683			1,628,445
Less loans held for sale, net	8,565			—
Total gross loans held for investment	2,254,118			1,628,445
Plus (less):
Deferred loan origination costs and premiums, net	197			177
Allowance for loan losses	(17,317		)	(12,200		)
Loans held for investment, net	$	2,236,998		$	1,616,422

Summary of Company's investment in purchased credit impaired loans

The carrying amount of those loans at December 31, 2015, and 2014 was as follows:



	For the Years Ended December 31,
	2015		2014
	(in thousands)
Business loans:
Commercial and industrial	$	289	$	94
Commercial owner occupied	884		546
Real estate loans:
Commercial non-owner occupied	2,088		956
One-to-four family	85		5
Total purchase credit impaired	$	3,346	$	1,601

Summary of accretable yield on purchased credit impaired

The following table summarizes the accretable yield on the purchased credit impaired for the years ended December 31, 2015, 2014 and 2013:



	For the Years Ended December 31,
	2015			2014			2013
	(in thousands)
Balance at the beginning of period	$	1,403		$	1,676		$	2,276
Accretable yield at acquisition	602			—			—
Accretion	(385		)	(255		)	(557		)
Disposals and other	(249		)	(18		)	(648		)
Change in accretable yield	1,355			—			605
Balance at the end of period	$	2,726		$	1,403		$	1,676

Summary of Company's investment in impaired loans

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



					Impaired Loans
	Recorded Investment		Unpaid Principal Balance		With Specific Allowance		Without Specific Allowance		Specific Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
December 31, 2015
Business loans:
Commercial and industrial	$	313	$	578	$	—	$	313	$	—	$	90	$	29
Franchise	1,630		2,394		1,461		169		731		1,386		3
Commercial owner occupied	536		883		—		536		—		415		67
Real estate loans:
Commercial non-owner occupied	214		329		—		214		—		430		19
One-to-four family	70		98		—		70		—		204		5
Land	21		37		—		21		—		13		—
Totals	$	2,784	$	4,319	$	1,461	$	1,323	$	731	$	2,538	$	123
December 31, 2014
Business loans:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	11	$	—
Commercial owner occupied	388		440		—		388		—		514		46
SBA	—		—		—		—		—		5		—
Real estate loans:
Commercial non-owner occupied	848		1,217		—		848		—		908		85
Multi-family	—		—		—		—		—		—		—
One-to-four family	236		256		—		236		—		440		17
Totals	$	1,472	$	1,913	$	—	$	1,472	$	—	$	1,878	$	148
December 31, 2013
Business loans:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	255	$	17
Commercial owner occupied	747		872		—		747		—		177		66
SBA	14		246		—		14		—		70		28
Real estate loans:
Commercial non-owner occupied	983		1,202		28		955		1		984		68
Multi-family	—		—		—		—		—		108		2
One-to-four family	683		746		278		405		104		743		44
Totals	$	2,427	$	3,066	$	306	$	2,121	$	105	$	2,337	$	225

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		Doubtful		Total Gross Loans
December 31, 2015	(in thousands)
Business loans:
Commercial and industrial	$	306,513	$	73	$	3,155	$	—	$	309,741
Franchise	327,295		—		169		1,461		328,925
Commercial owner occupied	286,270		627		7,829		—		294,726
SBA	62,256		—		—		—		62,256
Warehouse facilities	143,200		—		—		—		143,200
Real estate loans:
Commercial non-owner occupied	418,917		—		2,666		—		421,583
Multi-family	425,616		—		3,387		—		429,003
One-to-four family	78,997		—		1,053		—		80,050
Construction	169,748		—		—		—		169,748
Land	18,319		—		21		—		18,340
Other loans	5,111		—		—		—		5,111
Totals	$	2,242,242	$	700	$	18,280	$	1,461	$	2,262,683

	Pass		Special Mention		Substandard		Doubtful		Total Gross Loans
December 31, 2014	(in thousands)
Business loans:
Commercial and industrial	$	227,151	$	—	$	1,828	$	—	$	228,979
Franchise	199,228		—		—		—		199,228
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

Schedule of credit quality of the loan portfolio



			Days Past Due
	Current		30-59		60-89		90+		Total Gross Loans		Non-accruing
December 31, 2015	(in thousands)
Business loans:
Commercial and industrial	$	309,464	$	20	$	—	$	257	$	309,741	$	463
Franchise	327,295		—		—		1,630		328,925		1,630
Commercial owner occupied	294,371		—		355		—		294,726		536
SBA	62,256		—		—		—		62,256		—
Warehouse facilities	143,200		—		—		—		143,200		—
Real estate loans:
Commercial non-owner occupied	421,369		214		—		—		421,583		1,164
Multi-family	429,003		—		—		—		429,003		—
One-to-four family	79,915		89		—		46		80,050		155
Construction	169,748		—		—		—		169,748		—
Land	18,319		—		—		21		18,340		21
Other loans	5,111		—		—		—		5,111		1
Totals	$	2,260,051	$	323	$	355	$	1,954	$	2,262,683	$	3,970
			Days Past Due
	Current		30-59		60-89		90+		Total Gross Loans		Non-accruing
December 31, 2014
Business loans:
Commercial and industrial	$	228,955	$	—	$	24	$	—	$	228,979	$	—
Franchise	199,228		—		—		—		199,228		—
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