Loans (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016			2015
	(dollars in thousands)
Business loans:
Commercial and industrial	$	563,169		$	309,741
Franchise	459,421			328,925
Commercial owner occupied	454,918			294,726
SBA	96,705			62,256
Warehouse facilities	—			143,200
Real estate loans:
Commercial non-owner occupied	586,975			421,583
Multi-family	690,955			429,003
One-to-four family	100,451			80,050
Construction	269,159			169,748
Land	19,829			18,340
Other loans	4,112			5,111
Total gross loans	3,245,694			2,262,683
Less loans held for sale, net	7,711			8,565
Total gross loans held for investment	3,237,983			2,254,118
Plus:
Deferred loan origination costs and premiums, net	3,630			197
Allowance for loan losses	(21,296		)	(17,317		)
Loans held for investment, net	$	3,220,317		$	2,236,998

Summary of Company's investment in purchased credit impaired loans

The carrying amount of those loans at December 31, 2016, and 2015 was as follows:



	For the Years Ended December 31,
	2016		2015
	(dollars in thousands)
Business loans:
Commercial and industrial	$	2,586	$	289
Commercial owner occupied	491		884
Real estate loans:
Commercial non-owner occupied	1,088		2,088
One-to-four family	1		85
Other	393		—
Total purchase credit impaired	$	4,559	$	3,346

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, 2016, 2015 and 2014:



	For the Years Ended December 31,
	2016			2015			2014
	(dollars in thousands)
Balance at the beginning of period	$	2,726		$	1,403		$	1,676
Accretable yield at acquisition	788			602			—
Accretion	(1,354		)	(385		)	(255		)
Disposals and other	165			(249		)	(18		)
Change in accretable yield	1,422			1,355			—
Balance at the end of period	$	3,747		$	2,726		$	1,403

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
	(dollars in thousands)
December 31, 2016
Business loans:
Commercial and industrial	$	250	$	1,990	$	250	$	—	$	250	$	864	$	76
Franchise	—		—		—		—		—		1,016		68
Commercial owner occupied	436		847		—		436		—		505		37
SBA	316		3,865		—		316		—		331		23
Real estate loans:
Commercial non-owner occupied	—		—		—		—		—		1,072		93
One-to-four family	124		291		—		124		—		226		18
Land	15		36		—		15		—		18		2
Totals	$	1,141	$	7,029	$	250	$	891	$	250	$	4,032	$	317
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
One-to-four family	236		256		—		236		—		440		17
Totals	$	1,472	$	1,913	$	—	$	1,472	$	—	$	1,878	$	148

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, 2016	(dollars in thousands)
Business loans:
Commercial and industrial	$	550,919	$	8,216	$	3,784	$	250	$	563,169
Franchise	459,421		—		—		—		459,421
Commercial owner occupied	450,416		281		4,221		—		454,918
SBA	96,190		53		462		—		96,705
Real estate loans:
Commercial non-owner occupied	585,093		810		1,072		—		586,975
Multi-family	681,942		6,610		2,403		—		690,955
One-to-four family	100,010		—		441		—		100,451
Construction	269,159		—		—		—		269,159
Land	19,814		—		15		—		19,829
Other loans	3,719		—		393		—		4,112
Totals	$	3,216,683	$	15,970	$	12,791	$	250	$	3,245,694

	Pass		Special Mention		Substandard		Doubtful		Total Gross Loans
December 31, 2015	(dollars 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 credit quality of the loan portfolio



			Days Past Due
	Current		30-59		60-89		90+		Total Gross Loans		Non-accruing
December 31, 2016	(dollars in thousands)
Business loans:
Commercial and industrial	$	562,805	$	104	$	—	$	260	$	563,169	$	250
Franchise	459,421		—		—		—		459,421		—
Commercial owner occupied	454,918		—		—		—		454,918		436
SBA	96,389		—		—		316		96,705		316
Real estate loans:
Commercial non-owner occupied	586,975		—		—		—		586,975		—
Multi-family	690,955		—		—		—		690,955		—
One-to-four family	100,314		18		71		48		100,451		124
Construction	269,159		—		—		—		269,159		—
Land	19,814		—		—		15		19,829		15
Other loans	4,112		—		—		—		4,112		—
Totals	$	3,244,862	$	122	$	71	$	639	$	3,245,694	$	1,141
			Days Past Due
	Current		30-59		60-89		90+		Total Gross Loans		Non-accruing
December 31, 2015
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