Loans Held for Investment (Tables)

9 Months Ended

Sep. 30, 2016

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:



	September 30, 2016			December 31, 2015
	(in thousands)
Business loans:
Commercial and industrial	$	537,809		$	309,741
Franchise	431,618			328,925
Commercial owner occupied (1)	460,068			294,726
SBA	92,195			62,256
Warehouse facilities	—			143,200
Real estate loans:
Commercial non-owner occupied	527,412			421,583
Multi-family	689,813			429,003
One-to-four family (2)	101,377			80,050
Construction	231,098			169,748
Land	18,472			18,340
Other loans	5,678			5,111
Total gross loans (3)	3,095,540			2,262,683
Less Loans held for sale, net	9,009			8,565
Total gross loans held for investment	3,086,531			2,254,118
Plus (less):
Deferred loan origination costs/(fees) and premiums/(discounts), net	4,308			197
Allowance for loan losses	(21,843		)	(17,317		)
Loans held for investment, net	$	3,068,996		$	2,236,998

______________________________

(1) Secured by real estate.

(2) Includes second trust deeds.

(3) Total gross loans for September 30, 2016 are net of the unaccreted mark-to-market discounts of $9.1 million.

Summary of Company's investment in purchased credit impaired loans

The carrying amount of those loans is as follows:



	September 30, 2016
	Canyon National		IDPK		SCAF		Total
	(in thousands)
Business loans:
Commercial and industrial	$	11	$	406	$	7,226	$	7,643
Commercial owner occupied	281		—		1,013		1,294
Real estate loans:
Commercial non-owner occupied	418		282		—		700
Other loans	—		—		378		378
Outstanding balance	$	710	$	688	$	8,617	$	10,015

Carrying amount, net of allowance of $71, $25, and $5, respectively	$	1,450	$	310	$	5,708	$	7,468

Summary of accretable yield on purchased credit impaired

The following table summarizes the accretable yield on the purchased credit impaired loans for the nine months ended September 30, 2016:



	Nine Months Ended
	September 30, 2016
	Canyon National			IDPK			SCAF			Total
	(in thousands)
Balance at the beginning of period	$	1,130		$	1,596		$	—		$	2,726
Additions	—			—			788			788
Accretion	(33		)	(38		)	(594		)	(665		)
Disposals	—			—			(27		)	(27		)
Reclassification from (to) nonaccretable difference	(351		)	(1,068		)	676			(743		)
Balance at the end of period	$	746		$	490		$	843		$	2,079

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
	(in thousands)
September 30, 2016
Business loans:
Commercial and industrial	$	1,990	$	1,990	$	1,990	$	—	$	1,990
Commercial owner occupied	1,003		606		146		460		73
SBA	2,814		503		354		149		354
Real estate loans:
Commercial non-owner occupied	2,491		2,487		—		2,487		—
One-to-four family	178		131		—		131		—
Land	36		17		—		17		—
Totals	$	8,512	$	5,734	$	2,490	$	3,244	$	2,417



	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, 2015
Business loans:
Commercial and industrial	$	578	$	313	$	—	$	313	$	—	$	90	$	29
Franchise	2,394		1,630		1,461		169		731		1,386		3
Commercial owner occupied	883		536		—		536		—		415		67
Real estate loans:
Commercial non-owner occupied	329		214		—		214		—		430		19
One-to-four family	98		70		—		70		—		204		5
Land	37		21		—		21		—		13		—
Totals	$	4,319	$	2,784	$	1,461	$	1,323	$	731	$	2,538	$	123



	Impaired Loans
	Three Months Ended				Nine Months Ended
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(in thousands)
September 30, 2016
Business loans:
Commercial and industrial	$	1,387	$	16	$	682	$	28
Franchise	974		16		1,355		68
Commercial owner occupied	518		9		510		27
SBA	381		7		217		11
Real estate loans:
Commercial non-owner occupied	2,487		42		877		44
One-to-four family	133		4		259		13
Land	17		1		18		2
Totals	$	5,897	$	95	$	3,918	$	193



	Impaired Loans
	Three Months Ended				Nine Months Ended
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(in thousands)
September 30, 2015
Business loans:
Commercial and industrial	$	—	$	—	$	25	$	—
Franchise	1,647		—		1,329		—
Commercial owner occupied	364		23		373		15
Real estate loans:
Commercial non-owner occupied	443		21		451		18
One-to-four family	221		13		226		9
Land	23		3		10		1
Totals	$	2,698	$	60	$	2,414	$	43

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:



	September 30, 2016		December 31, 2015
	(in thousands)
Nonaccruing loans	$	5,734	$	2,736
Accruing loans	—		48
Total impaired loans	$	5,734	$	2,784

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
September 30, 2016	(in thousands)
Business loans:
Commercial and industrial	$	525,979	$	4,034	$	5,806	$	1,990	$	537,809
Franchise	430,934		684		—		—		431,618
Commercial owner occupied	452,461		2,019		5,588		—		460,068
SBA	91,692		—		503		—		92,195
Real estate loans:
Commercial non-owner occupied	523,837		—		3,575		—		527,412
Multi-family	687,396		—		2,417		—		689,813
One-to-four family	100,488		—		889		—		101,377
Construction	231,098		—		—		—		231,098
Land	18,455		—		17		—		18,472
Other loans	5,256		—		422		—		5,678
Totals	$	3,067,596	$	6,737	$	19,217	$	1,990	$	3,095,540



	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

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
September 30, 2016	(in thousands)
Business loans:
Commercial and industrial	$	535,709	$	100	$	1,990	$	10	$	537,809	$	1,990
Franchise	431,618		—		—		—		431,618		—
Commercial owner occupied	460,068		—		—		—		460,068		606
SBA	91,174		928		—		93		92,195		503
Real estate loans:
Commercial non-owner occupied	524,925		—		—		2,487		527,412		2,487
Multi-family	689,813		—		—		—		689,813		—
One-to-four family	101,324		14		—		39		101,377		131
Construction	231,098		—		—		—		231,098		—
Land	18,455		—		—		17		18,472		17
Other loans	5,678		—		—		—		5,678		—
Totals	$	3,089,862	$	1,042	$	1,990	$	2,646	$	3,095,540	$	5,734



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