10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 001-35683

CU BANCORP

(Exact name of registrant as specified in its charter)

California	90-0779788
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
818 West 7th Street, Suite 220 Los Angeles, California	90017
(Address of principal executive offices)	(Zip Code)

(213) 430-7000

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	¨	Accelerated Filer	x
Non Accelerated Filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of November 3, 2015 the number of shares outstanding of the registrant’s no par value Common Stock was 17,034,659.

CU BANCORP

September 30, 2015 FORM 10-Q

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements
	Consolidated Balance Sheets September 30, 2015 (Unaudited) and December 31, 2014	3
	Consolidated Statements of Income Three and Nine Months Ended September 30, 2015 and 2014 (Unaudited)	4
	Consolidated Statements of Comprehensive Income Three and Nine Months Ended September 30, 2015 and 2014 (Unaudited)	5
	Consolidated Statements of Changes in Shareholders’ Equity Nine Months Ended September 30, 2015 (Unaudited)	6
	Consolidated Statements of Cash Flows Nine Months Ended September 30, 2015 and 2014 (Unaudited)	7
	Notes to the Consolidated Financial Statements (Unaudited)	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
	Overview	42
	Results of Operations	47
	Financial Condition	58
	Liquidity	63
	Dividends	64
	Regulatory Matters	65
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	68
ITEM 4.	Controls and Procedures	70
PART II. OTHER INFORMATION		71
ITEM 1.	Legal Proceedings	71
ITEM 1A.	Risk Factors	71
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
ITEM 3.	Defaults Upon Senior Securities	71
ITEM 4.	Mine Safety Disclosures	71
ITEM 5.	Other Information	71
ITEM 6.	Exhibits	71
Signatures		72

Page 2 of 72

CU BANCORP

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

	September 30, 2015			December 31, 2014
	(Unaudited)			(Audited)
ASSETS
Cash and due from banks	$	41,929		$	33,996
Interest earning deposits in other financial institutions		269,298			98,590
Total cash and cash equivalents		311,227			132,586
Certificates of deposit in other financial institutions		58,674			76,433
Investment securities available-for-sale, at fair value		256,085			226,962
Investment securities held-to-maturity, at amortized cost		43,269			47,147
Total investment securities		299,354			274,109
Loans		1,771,347			1,624,723
Allowance for loan loss		(14,965	)		(12,610	)
Net loans		1,756,382			1,612,113
Premises and equipment, net		4,981			5,377
Deferred tax assets, net		17,241			16,504
Other real estate owned, net		1,292			850
Goodwill		63,950			63,950
Core deposit and leasehold right intangibles		8,138			9,547
Bank owned life insurance		49,548			38,732
Accrued interest receivable and other assets		33,220			34,916
Total Assets	$	2,604,007		$	2,265,117
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Non-interest bearing demand deposits	$	1,248,348		$	1,032,634
Interest bearing transaction accounts		257,853			206,544
Money market and savings deposits		691,292			643,675
Certificates of deposit		62,320			64,840
Total deposits		2,259,813			1,947,693
Securities sold under agreements to repurchase		16,698			9,411
Subordinated debentures, net		9,657			9,538
Accrued interest payable and other liabilities		19,491			19,283
Total Liabilities		2,305,659			1,985,925
Commitments and Contingencies (Note 14)		—			—
SHAREHOLDERS’ EQUITY
Serial Preferred Stock – authorized, 50,000,000 shares: Series A, non-cumulative perpetual preferred stock, $1,000 per share liquidation preference, 16,400 shares authorized, issued and outstanding at September 30, 2015 and December 31, 2014, respectively		16,739			16,004
Common stock – authorized, 75,000,000 shares no par value, 16,870,936 shares issued and 16,910,936 shares outstanding at September 30, 2015, and 16,683,856 shares issued and outstanding at December 31, 2014		227,823			226,389
Additional paid-in capital		21,810			19,748
Retained earnings		31,713			16,861
Accumulated other comprehensive income		263			190
Total Shareholders’ Equity		298,348			279,192
Total Liabilities and Shareholders’ Equity	$	2,604,007		$	2,265,117

The accompanying notes are an integral part of these consolidated financial statements.

Page 3 of 72

CU BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Interest Income
Interest and fees on loans	$	21,689	$	12,401	$	62,239	$	36,691
Interest on investment securities		1,124		589		3,355		1,557
Interest on interest bearing deposits in other financial institutions		293		248		741		665
Total Interest Income		23,106		13,238		66,335		38,913
Interest Expense
Interest on interest bearing transaction accounts		105		70		303		194
Interest on money market and savings deposits		427		225		1,218		681
Interest on certificates of deposit		53		58		150		169
Interest on securities sold under agreements to repurchase		9		8		21		27
Interest on subordinated debentures		110		109		326		323
Total Interest Expense		704		470		2,018		1,394
Net Interest Income		22,402		12,768		64,317		37,519
Provision for loan losses		705		35		2,831		518
Net Interest Income After Provision For Loan Losses		21,697		12,733		61,486		37,001
Non-Interest Income
Gain on sale of SBA loans, net		640		331		1,278		936
Deposit account service charge income		1,159		631		3,453		1,891
Other non-interest income		1,189		1,042		3,960		2,750
Total Non-Interest Income		2,988		2,004		8,691		5,577
Non-Interest Expense
Salaries and employee benefits (includes stock based compensation expense of $810 and $445 for the three months, and $2,130 and $1,332 for the nine months ended September 30, 2015 and 2014, respectively)		9,744		6,066		28,175		17,886
Occupancy		1,465		999		4,300		2,970
Data processing		596		472		1,872		1,423
Legal and professional		412		456		1,914		1,390
FDIC deposit assessment		370		195		1,054		596
Merger expenses		146		631		498		1,128
OREO valuation write-downs and expenses		153		8		179		14
Office services expenses		383		219		1,204		721
Other operating expenses		1,798		985		5,696		3,150
Total Non-Interest Expense		15,067		10,031		44,892		29,278
Net Income Before Provision for Income Tax Expense		9,618		4,706		25,285		13,300
Provision for income tax expense		3,355		2,157		9,556		5,699
Net Income	$	6,263	$	2,549	$	15,729	$	7,601
Preferred stock dividends and discount accretion		293		—		877		—
Net Income available to common shareholders	$	5,970	$	2,549	$	14,852	$	7,601
Earnings Per Share
Basic earnings per share	$	0.36	$	0.23	$	0.90	$	0.70
Diluted earnings per share	$	0.35	$	0.23	$	0.88	$	0.68

The accompanying notes are an integral part of these consolidated financial statements.

Page 4 of 72

CU BANCORP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(Dollars in thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net Income	$	6,263	$	2,549	$	15,729	$	7,601
Other Comprehensive Income, net of tax:
Net change in unrealized gains on available-for-sale investment securities		311		8		73		408
Other Comprehensive Income		311		8		73		408
Comprehensive Income	$	6,574	$	2,557	$	15,802	$	8,009

The accompanying notes are an integral part of these consolidated financial statements.

Page 5 of 72

CU BANCORP

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

For the Nine Months Ended September 30, 2015

(Unaudited)

(Dollars in thousands)

	Preferred Stock				Common Stock
	Outstanding Shares		Amount		Issued Shares			Amount		Additional Paid in Capital			Retained Earnings			Accumulated Other Comprehensive Income		Total Shareholders’ Equity
Balance at December 31, 2014		16,400	$	16,004		16,683,856		$	226,389	$	19,748		$	16,861		$	190	$	279,192
Net issuance of restricted stock		—		—		68,625			—		—			—			—		—
Exercise of stock options		—		—		158,315			1,434		—			—			—		1,434
Stock based compensation expense related to employee stock options and restricted stock		—		—		—			—		2,130			—			—		2,130
Restricted stock repurchase		—		—		(39,860	)		—		(856	)		—			—		(856	)
Excess tax benefit – stock based compensation		—		—		—			—		788			—			—		788
Preferred stock dividends and discount accretion		—		735		—			—		—			(877	)		—		(142	)
Net Income		—		—		—			—		—			15,729			—		15,729
Other Comprehensive Income		—		—		—			—		—			—			73		73
Balance at September 30, 2015		16,400		16,739		16,870,936		$	227,823	$	21,810		$	31,713		$	263	$	298,348

The accompanying notes are an integral part of these consolidated financial statements.

Page 6 of 72

CU BANCORP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

	Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities:
Net income:	$	15,729		$	7,601
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		2,831			518
Provision for unfunded loan commitments		87			76
Stock based compensation expense		2,130			1,332
Depreciation		1,062			725
Net accretion of discounts/premiums for loans acquired and deferred loan fees/costs		(1,038	)		(3,947	)
Net amortization from investment securities		2,343			1,133
Increase in bank owned life insurance		(947	)		(463	)
Amortization of core deposit intangibles		1,262			203
Amortization of time deposit premium		(10	)		(13	)
Net amortization of leasehold right intangible asset and liabilities		4			158
Accretion of subordinated debenture discount		119			119
Valuation write-downs on OREO		133			—
Gain on sale of SBA loans, net		(1,278	)		(936	)
Decrease (increase) in deferred tax assets		(790	)		1,176
Decrease in accrued interest receivable and other assets		2,484			1,838
Increase (decrease) in accrued interest payable and other liabilities		(327	)		255
Net excess in tax benefit on stock compensation		(788	)		(477	)
Increase (decrease) in fair value of derivative swap liability		591			(364	)
Net cash provided by operating activities		23,597			8,934
Cash flows from investing activities:
Purchases of available-for-sale investment securities		(57,597	)		(48,656	)
Proceeds from repayment and maturities from investment securities		30,135			15,157
Loans originated, net of principal payments		(145,359	)		(40,495	)
Purchases of premises and equipment		(666	)		(842	)
Net increase (decrease) in certificates of deposit in other financial institutions		17,759			(14,166	)
Purchase of bank owned life insurance		(9,869	)		—
Net cash (used in) investing activities		(165,597	)		(89,002	)
Cash flows from financing activities:
Net increase in Non-interest bearing demand deposits		215,714			66,059
Net increase (decrease) in Interest bearing transaction accounts		51,309			(9,836	)
Net increase (decrease) in Money market and savings deposits		47,617			(14,970	)
Net decrease in Certificates of deposit		(2,510	)		(10,716	)
Net increase in Securities sold under agreements to repurchase		7,287			2,477
Net proceeds from stock options exercised		1,434			1,277
Restricted stock repurchase		(856	)		(246	)
Dividends paid on preferred stock		(142	)		—
Net excess in tax benefit on stock compensation		788			477
Net cash provided by financing activities		320,641			34,522
Net increase (decrease) in cash and cash equivalents		178,641			(45,546	)
Cash and cash equivalents, beginning of year		132,586			241,287
Cash and cash equivalents, end of period	$	311,227		$	195,741
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	2,127		$	1,301
Cash paid during the period for taxes	$	6,767		$	2,550
Supplemental disclosures of non-cash investing activities:
Net change in unrealized gain on available-for-sale investment securities, net of tax	$	73		$	408
Loans transferred to other real estate owned	$	575		$	219

The accompanying notes are an integral part of these consolidated financial statements

Page 7 of 72

CU BANCORP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2015

(Unaudited)

Note 1 - Basis of Financial Statement Presentation

CU Bancorp (the “Company”) is a bank holding company whose operating subsidiary is California United Bank. CU Bancorp was established to facilitate the reorganization and merger of Premier Commercial Bank, N.A. into California United Bank, which took place after the close of business on July 31, 2012. As a bank holding company, CU Bancorp is subject to regulation of the Federal Reserve Board (“FRB”). The term “Company”, as used throughout this document, refers to the consolidated financial statements of CU Bancorp and California United Bank.

California United Bank (the “Bank”) is a full-service commercial business bank offering a broad range of banking products and services including: deposit services, lending and cash management to small and medium-sized businesses, to non-profit organizations, to business principals and entrepreneurs, to the professional community, including attorneys, certified public accountants, financial advisors, healthcare providers and investors. The Bank opened for business in 2005, with its current headquarters office located in Los Angeles, California. As a state chartered non-member bank, the Bank is subject to regulation by the California Department of Business Oversight, (the “DBO”) and the Federal Deposit Insurance Corporation (“FDIC”). The deposits of the Bank are insured by the FDIC to the maximum amount allowed by law.

The consolidated financial statements include the accounts of the Company and the Bank. Significant intercompany items have been eliminated in consolidation. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission.

CU Bancorp is the common shareholder of Premier Commercial Statutory Trust I, Premier Commercial Statutory Trust II, and Premier Commercial Statutory Trust III, entities which were acquired in the merger with Premier Commercial Bancorp (“PC Bancorp”). These trusts were established for the sole purpose of issuing trust preferred securities and do not meet the criteria for consolidation in accordance with Accounting Standards Codification (“ASC”) 810, Consolidations. For more detail, see Note 9 –Borrowings and Subordinated Debentures.

Certain information and footnote disclosures presented in the annual consolidated financial statements are not included in the interim consolidated financial statements. Accordingly, the accompanying unaudited interim consolidated financial statements should be read in conjunction with our 2014 Annual Report on Form 10-K. In the opinion of management, the accompanying consolidated financial statements contain all necessary adjustments of a normal recurring nature, to present fairly the consolidated financial position of the Company and the results of its operations for the interim periods presented.

Use of Estimates in the Preparation of Financial Statements

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In addition, these accounting principles require the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements.

Estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan loss and various assets and liabilities measured at fair value. While management uses the most current available information to recognize losses on loans, future additions to the allowance for loan loss may be necessary based on, among other factors, changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan loss. Regulatory agencies may require the Company to recognize additions to the allowance for loan loss based on their judgment about information available to them at the time of their examination.

Business Segments

The Company is organized and operated as a single reporting segment, principally engaged in commercial business banking. The Company conducts its lending and deposit operations through ten full service branch offices located in Los Angeles, Orange, Ventura and San Bernardino counties.

Page 8 of 72

Note 2 - Recent Accounting Pronouncements

In November 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. This ASU will require an entity to determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument issued in the form of a share, including the embedded derivative feature that is being evaluated for separate accounting from the host contract when evaluating whether the host contract is more akin to debt or equity. In evaluating the stated and implied substantive terms and features, the existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. Although an individual term or feature may weigh more heavily in the evaluation on the basis of facts and circumstances, an entity should use judgment based on an evaluation of all the relevant terms and features. ASU 2014-16 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the ASU is effective for fiscal years ending after December 15, 2015, and interim periods within fiscal years thereafter. The effects of initially adopting the amendments should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendment is effective. Retrospective application is permitted to all relevant prior periods. Early adoption, including adoption in an interim period, is permitted. If an entity early adopts the amendments in an interim period, any adjustments shall be reflected as of the beginning of the fiscal year that includes that interim period. The Company does not expect the adoption of this ASU to have an impact on the Company’s financial position or results of operations.

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis to improve targeted areas of the consolidation guidance and reduce the number of consolidation models. The Company may either apply the amendments retrospectively or use a modified retrospective approach. ASU 2015-02 is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 simplifies the presentation of debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts. ASU 2015-03 is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted if the guidance is applied as of the beginning of the annual period of adoption. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which replaced existing revenue recognition guidance for contracts to provide goods or services to customers and amended existing guidance related to recognition of gains and losses on the sale of certain nonfinancial assets such as real estate. ASU 2014-09 established a principles-based approach to recognizing revenue that applies to all contracts other than those covered by other authoritative GAAP guidance. Quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows were also required. ASU 2014-09 was to be effective for interim and annual periods beginning after December 15, 2016 was to be applied on either a modified retrospective or full retrospective basis. In response to stakeholders’ requests to defer the effective date required by ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), in August 2015, the FASB issued ASU 2015-14 which defers the original effective date for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2015-14 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements.

Page 9 of 72

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement Period Adjustments. GAAP requires that during the measurement period, the acquirer retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. Those adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The acquirer also must revise comparative information for prior periods presented in the financial statements as needed, including revising depreciation, amortization, or other income effects as a result of changes made to provisional amounts. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in ASU 2015-16 eliminate the requirement to retrospectively account for those adjustments. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not been issued. For all other entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this ASU should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not yet been made available for issuance. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

Page 10 of 72

Note 3 - Business Combinations

On November 30, 2014, the Company completed the merger with 1st Enterprise Bank (“1st Enterprise”) pursuant to the terms of the Agreement and Plan of Merger dated June 2, 2014, as amended (“Merger Agreement”). 1st Enterprise was merged with and into the Bank, with the Bank continuing as the surviving entity in the merger. Pursuant to the terms and conditions set forth in the Merger Agreement, each outstanding share of 1st Enterprise common stock (other than shares as to which the holder exercised dissenters’ rights) was converted into the right to receive 1.3450 of a share of CU Bancorp common stock, resulting in five million shares of CU Bancorp common stock issued. The fair value of the five million shares of common stock issued as part of the consideration paid ($103 million) was determined based on the closing market price ($19.60) of CU Bancorp common stock on November 30, 2014. The 16,400 shares of 1st Enterprise Non-Cumulative Perpetual Preferred Stock, Series D were converted into the right to receive 16,400 shares of CU Bancorp’s Non-Cumulative Perpetual Preferred Stock, Series A (“CU Bancorp Preferred Stock”). The U.S. Department of the Treasury is the sole holder of all outstanding shares of CU Bancorp Preferred Stock. As part of the Merger Agreement, CU Bancorp adopted the 1st Enterprise 2006 Stock Incentive Plan, as amended, as its own equity plan and all stock options granted by 1st Enterprise thereunder are exercisable for CU Bancorp common stock on substantially the same terms but adjusted to reflect the exchange ratio set forth in the Merger Agreement. See Note 16—Stock Options and Restricted Stock, in the Company’s 2014 Form 10-K, for more details. The merger was accounted for by the Company using the acquisition method of accounting. Accordingly, the assets and liabilities of 1st Enterprise were recorded at their respective fair values at acquisition date and represents management’s estimates based on available information.

In connection with the merger, the consideration paid, the assets acquired, and the liabilities assumed were recorded at fair value on the date of acquisition, as summarized in the following table (dollars in thousands):

	November 30, 2014
Assets acquired:
Cash and due from banks	$	8,739
Interest earning deposits in other financial institutions		11,554
Investment securities available-for-sale		117,407
Investment securities held-to-maturity		47,457
Loans		553,183
Premises and equipment, net		1,830
Deferred tax asset		5,682
Goodwill		51,658
Core deposit and leasehold right intangibles		7,533
Bank owned life insurance		16,871
Accrued interest receivable and other assets		11,583
Total assets acquired	$	833,497
Liabilities assumed:
Deposits	$	703,358
Accrued interest payable and other liabilities		1,856
Total liabilities assumed	$	705,214
Total consideration paid:
CU Bancorp common stock issued	$	102,712
CU Bancorp preferred stock issued		15,921
Fair value of 1st Enterprise stock options		9,561
Cash paid to a dissenter shareholder		87
Cash in lieu of fractional shares paid to 1st Enterprise shareholders		2
Total Consideration	$	128,283

1st Enterprise operated as a full-service independent commercial banking institution in the Southern California market with three branches located in downtown Los Angeles, Orange County and the Inland Empire and a loan production office in the San Fernando Valley. 1st Enterprise and the Bank had complementary business models and both had developed strong commercial banking platforms and production capabilities, low-cost deposit bases and robust credit cultures.

The Company expensed approximately $146,000 of merger expenses for the three months ended September 30, 2015 and $631,000 for the three months ended September 30, 2014. For the nine months ended September 30, 2015 and September 30, 2014, the Company expensed approximately $498,000 and $1 million of merger expenses, respectively.

Page 11 of 72

The other intangible assets are primarily related to core deposits and are being amortized on an accelerated basis over a period of approximately ten years in proportion to the related estimated benefits. The assets and liabilities of 1st Enterprise were accounted for at fair value and required either a third party analysis or an internal valuation analysis of fair value. An analysis was performed on loans, investment securities, contractual lease obligations, deferred compensation, deposits, premises and equipment, other assets, other liabilities and preferred stock as of the merger date. Balances that were considered to be at fair value at the date of acquisition were cash and cash equivalents, bank owned life insurance, derivatives, other assets (interest receivable), and certain other liabilities (interest payable). The Company made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. Such fair values are preliminary estimates and are subject to adjustment for up to one year after the merger date. For tax purposes, acquisition accounting adjustments, including goodwill, are not taxable or deductible.

The Company estimated the fair value for most loans acquired from 1^st Enterprise by utilizing a methodology wherein loans with comparable characteristics were aggregated by type of collateral, whether loans are fixed, adjustable, interest only or have balloon structures. Other considerations included risk ratings, delinquency history, performance status (accrual or non-accrual) and other relevant factors. The discounted cash flow approach (“DCF”) was used to arrive at the fair value of the loans acquired. Projected cash flows were determined by estimating future credit losses and prepayment rates, which were then discounted to present value at a risk-adjusted discount rate for similar loans.

There was no carryover of 1^st Enterprise’s allowance for loan losses associated with the loans acquired as the loans were initially recorded at fair value.

Purchased Credit Impaired (“PCI”) loans are accounted for under ASC 310-30 and non-PCI loans are accounted for under ASC 310-20. PCI loans are acquired loans with evidence of deterioration of credit quality since origination and it is probable at the acquisition date, that the Company will not be able to collect all contractually required amounts. When the timing and/or amounts of expected cash flows on such loans are not reasonably estimable, no interest is accreted and the loan is reported as a non-accrual loan; otherwise, if the timing and amounts of expected cash flows for PCI loans are reasonably estimable, then interest is accreted and the loans are reported as accruing loans. The non-accretable difference represents the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows, and also reflects the estimated credit losses in the acquired loan portfolio at the acquisition date, which can fluctuate due to changes in expected cash flows during the life of the PCI loans.

The following table presents the fair value of loans pursuant to accounting standards for PCI and non-PCI loans as of the 1^st Enterprise acquisition date (dollars in thousands):

	November 30, 2014
	PCI loans			Non-PCI loans			Total
Contractually required payments	$	577		$	569,276		$	569,853
Less: non-accretable difference		(108	)		—			(108	)
Cash flows expected to be collected (undiscounted)		469			569,276			569,745
Accretable yield		—			(16,562	)		(16,562	)
Fair value of acquired loans	$	469		$	552,714		$	553,183

Page 12 of 72

Note 4 - Computation of Book Value and Tangible Book Value per Common Share

Book value per common share was calculated by dividing total shareholders’ equity less preferred stock, by the number of common shares issued. Tangible book value per common share was calculated by dividing tangible common equity, by the number of common shares issued. The tables below present the computation of book value and tangible book value per common share as of the dates indicated (dollars in thousands, except share and per share data):

	September 30, 2015		December 31, 2014
Total Shareholders’ Equity	$	298,348	$	279,192
Less: Preferred stock		16,739		16,004
Less: Goodwill		63,950		63,950
Less: Core deposit and leasehold right intangibles		8,138		9,547
Tangible common equity	$	209,521	$	189,691
Common shares issued		16,870,936		16,683,856
Book value per common share	$	16.69	$	15.78
Tangible book value per common share	$	12.42	$	11.37

Note 5 - Computation of Earnings per Common Share

Basic and diluted earnings per common share were determined by dividing the net income by the applicable basic and diluted weighted average common shares outstanding. The following table shows weighted average basic shares outstanding, potential dilutive shares related to stock options, unvested restricted stock and restricted stock units, and weighted average diluted shares for the periods indicated (dollars in thousands, except share and per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net Income	$	6,263	$	2,549	$	15,729	$	7,601
Less: Preferred stock dividends and discount accretion		293		—		877		—
Net Income available to common shareholders	$	5,970	$	2,549	$	14,852	$	7,601
Weighted average basic common shares outstanding		16,541,380		10,986,065		16,477,206		10,937,507
Dilutive effect of potential common share issuances from stock options, restricted stock and restricted stock units		456,684		203,837		446,296		210,154
Weighted average diluted common shares outstanding		16,998,064		11,189,902		16,923,502		11,147,661
Income per common share
Basic	$	0.36	$	0.23	$	0.90	$	0.70
Diluted	$	0.35	$	0.23	$	0.88	$	0.68
Anti-dilutive shares not included in the calculation of diluted earnings per share		—		81,000		43,259		82,625

Page 13 of 72

Note 6 - Investment Securities

The investment securities portfolio has been classified into two categories: available-for-sale (“AFS”) and held-to-maturity (“HTM”).

The following tables present the amortized cost, gross unrealized gains and losses, and fair values of investment securities by major category as of the dates indicated (dollars in thousands):

			Gross Unrealized
September 30, 2015	Amortized Cost		Gains		Losses		Fair Value
Available-for-sale:
U.S. Govt Agency and Sponsored Agency - Note Securities	$	1,018	$	4	$	—	$	1,022
U.S. Govt Agency - SBA Securities		76,238		665		371		76,532
U.S. Govt Agency - GNMA Mortgage-Backed Securities		32,607		243		252		32,598
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities		97,568		622		285		97,905
Corporate Securities		4,023		29		—		4,052
Municipal Securities		1,017		3		—		1,020
Asset Backed Securities		8,113		—		254		7,859
U.S. Treasury Notes		35,047		50		—		35,097
Total available-for-sale		255,631		1,616		1,162		256,085
Held-to-maturity:
Municipal Securities		43,269		224		71		43,422
Total held-to-maturity		43,269		224		71		43,422
Total investment securities	$	298,900	$	1,840	$	1,233	$	299,507

			Gross Unrealized
December 31, 2014	Amortized Cost		Gains		Losses		Fair Value
Available-for-sale:
U.S. Govt Agency and Sponsored Agency - Note Securities	$	2,036	$	2	$	—	$	2,038
U.S. Govt Agency - SBA Securities		54,062		770		345		54,487
U.S. Govt Agency - GNMA Mortgage-Backed Securities		29,364		255		277		29,342
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities		107,348		457		577		107,228
Corporate Securities		4,043		77		—		4,120
Municipal Securities		1,039		11		—		1,050
Asset Backed Securities		8,711		1		40		8,672
U.S. Treasury Notes		20,031		—		6		20,025
Total available-for-sale		226,634		1,573		1,245		226,962
Held-to-maturity:
Municipal Securities		47,147		169		157		47,159
Total held-to-maturity		47,147		169		157		47,159
Total investment securities	$	273,781	$	1,742	$	1,402	$	274,121

The Company’s investment securities portfolio at September 30, 2015, consists of U.S. Treasury Notes, U.S. Agency and U.S. Sponsored Agency issued AAA and AA rated investment-grade securities, asset backed securities, investment grade corporate bond securities, and municipal securities. At September 30, 2015 and December 31, 2014, securities with a market value of $203 million and $148.8 million, respectively, were pledged as collateral for securities sold under agreements to repurchase, public deposits, outstanding standby letters of credit, bankruptcy deposits, and other purposes as required by various statutes and agreements. See Note 9 – Borrowings and Subordinated Debentures.

Page 14 of 72

The Company did not have any sales of securities during the three and nine months ended September 30, 2015 and 2014.

The following tables present the gross unrealized losses and fair values of AFS and HTM investment securities that were in unrealized loss positions, summarized and classified according to the duration of the loss period as of the dates indicated (dollars in thousands).

	< 12 Continuous Months				> 12 Continuous Months				Total
September 30, 2015	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Temporarily-impaired available-for-sale investment securities:
U.S. Govt. Agency SBA Securities	$	27,938	$	204	$	11,904	$	167	$	39,842	$	371
U.S. Govt. Agency – GNMA Mortgage-Backed Securities		8,569		69		7,421		183		15,990		252
U.S. Govt. Sponsored Agency – CMO & Mortgage-Backed Securities		38,563		194		4,079		91		42,642		285
Asset Backed Securities		7,859		254		—		—		7,859		254
Total temporarily-impaired available-for-sale investment securities	$	82,929	$	721	$	23,404	$	441	$	106,333	$	1,162
Temporarily-impaired held-to-maturity investment securities:
Municipal Securities	$	10,932	$	71	$	—	$	—	$	10,932	$	71
Total temporarily-impaired held-to-maturity investment securities	$	10,932	$	71	$	—	$	—	$	10,932	$	71
	< 12 Continuous Months				> 12 Continuous Months				Total
December 31, 2014	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Temporarily-impaired available-for-sale investment securities:
U.S. Govt. Agency SBA Securities	$	10,688	$	87	$	10,095	$	258	$	20,783	$	345
U.S. Govt. Agency – GNMA Mortgage-Backed Securities		12,784		65		8,784		212		21,568		277
U.S. Govt. Sponsored Agency – CMO & Mortgage-Backed Securities		64,360		413		6,584		164		70,944		577
Asset Backed Securities		4,849		40		—		—		4,849		40
U.S Treasury Notes		20,025		6		—		—		20,025		6
Total temporarily-impaired available-for-sale investment securities	$	112,706	$	611	$	25,463	$	634	$	138,169	$	1,245
Temporarily-impaired held-to-maturity investment securities:
Municipal Securities	$	23,966	$	157	$	—	$	—	$	23,966	$	157
Total temporarily-impaired held-to-maturity investment securities	$	23,966	$	157	$	—	$	—	$	23,966	$	157

The unrealized losses in each of the above categories are associated with the general fluctuation of market interest rates and are not an indication of any deterioration in the credit quality of the security issuers. Further, the Company does not intend to sell these securities and is not more-likely-than-not to be required to sell the securities before the recovery of its amortized cost basis. Accordingly, the Company had no securities that were classified as other-than-temporarily impaired at September 30, 2015 or December 31, 2014, and did not recognize any impairment charges in the consolidated statements of income.

Page 15 of 72

The amortized cost, fair value and average yield of debt securities at September 30, 2015, are reflected in the table below (dollars in thousands). Maturity categories are determined as follows:

• U.S. Govt. Agency, U.S. Treasury Notes and U.S. Govt. Sponsored Agency bonds and notes – maturity date

• U.S. Govt. Sponsored Agency CMO or Mortgage-Backed Securities, U.S. Govt. Agency GNMA Mortgage-Backed Securities, Asset Backed Securities and U.S. Gov. Agency SBA Securities – estimated cash flow taking into account estimated pre-payment speeds

• Investment grade Corporate Bonds and Municipal Securities – the earlier of the maturity date or the expected call date

Although, U.S. Government Agency and U.S. Government Sponsored Agency Mortgage-Backed and CMO securities have contractual maturities through 2048, the expected maturity will differ from the contractual maturities because borrowers or issuers may have the right to prepay such obligations without penalties.

	September 30, 2015
Maturities Schedule of Securities (Dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield
Available-for-sale:
Due through one year	$	51,864	$	52,087		1.22	%
Due after one year through five years		100,939		101,176		1.50	%
Due after five years through ten years		64,028		63,949		1.85	%
Due after ten years		38,800		38,873		2.45	%
Total available-for-sale		255,631		256,085		1.67	%
Held-to-maturity:
Due through one year		3,743		3,747		2.04	%
Due after one year through five years		31,557		31,646		1.52	%
Due after five years through ten years		7,969		8,029		1.94	%
Total held-to-maturity		43,269		43,422		1.65	%
Total investment securities	$	298,900	$	299,507		1.67	%

The weighted average yields in the above table are based on effective rates of book balances at the end of the period. Yields are derived by dividing interest income, adjusted for amortization of premiums and accretion of discounts, by total amortized cost.

Investment in FHLB Common Stock

The Company’s investment in the common stock of the FHLB of San Francisco is carried at cost and was $8.0 million as of September 30, 2015 and December 31, 2014. The investment in FHLB stock is periodically evaluated for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. Based on the current financial condition of the FHLB and our intent and ability to hold this investment for a period of time sufficient to recover our recorded investment, no impairment losses have been recorded through September 30, 2015. The FHLB also paid a special dividend of $296,000 in the second quarter of 2015.

See Note 9 - Borrowings and Subordinated Debentures for a detailed discussion regarding the Company’s borrowings and the requirements to purchase FHLB common stock. See Note 5 - Investment Securities in the Company’s December 31, 2014 10-K for additional discussion on the Company’s evaluation and accounting for its investment in FHLB common stock.

Page 16 of 72

Note 7 - Loans

The following table presents the composition of the Company’s loan portfolio as of the dates indicated (dollars in thousands):

	September 30, 2015		December 31, 2014
Commercial and Industrial Loans:	$	556,462	$	528,517
Loans Secured by Real Estate:
Owner-Occupied Nonresidential Properties		376,579		339,309
Other Nonresidential Properties		515,402		481,517
Construction, Land Development and Other Land		94,353		72,223
1-4 Family Residential Properties		125,635		121,985
Multifamily Residential Properties		65,275		52,813
Total Loans Secured by Real Estate		1,177,244		1,067,847
Other Loans:		37,641		28,359
Total Loans	$	1,771,347	$	1,624,723

The following table is a breakout of the Company’s loan portfolio stratified by the industry concentration of the borrower by their respective NAICS code as of the dates indicated (dollars in thousands):

	September 30, 2015		December 31, 2014
Real Estate	$	811,868	$	744,663
Manufacturing		167,152		161,233
Wholesale		129,952		124,336
Construction		154,085		113,763
Finance		113,956		96,074
Hotel/Lodging		101,239		88,269
Professional Services		53,147		64,215
Other Services		47,041		45,781
Healthcare		47,359		43,917
Retail		36,777		35,503
Administrative Management		26,164		28,016
Restaurant/Food Service		31,884		24,525
Transportation		21,596		18,158
Information		8,756		15,457
Education		9,192		10,253
Entertainment		5,610		8,284
Other		5,569		2,276
Total	$	1,771,347	$	1,624,723

SBA Loans

As part of the acquisition of PC Bancorp, the Company acquired loans that were originated under the guidelines of the Small Business Administration (“SBA”) program. The total portfolio of the SBA contractual loan balances being serviced by the Company at September 30, 2015 was $109 million, of which $77 million has been sold. Of the $32 million remaining on the Company’s books, $25 million is un-guaranteed and $7 million is guaranteed by the SBA.

For SBA guaranteed loans, a secondary market exists to purchase the guaranteed portion of these loans with the Company continuing to “service” the entire loan. The secondary market for guaranteed loans is comprised of investors seeking long term assets with yields that adapt to the prevailing interest rates. These investors are typically financial institutions, insurance companies, pension funds, and other types of investors specializing in the acquisition of this product. When a decision to sell the guaranteed portion of an SBA loan is made by the Company, bids are solicited from secondary market investors and the loan is normally sold to the highest bidder.

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At September 30, 2015, there were no loans classified as held for sale. At September 30, 2015, the balance of SBA 7a loans originated during the quarter is $2 million, of which $1 million is guaranteed by the SBA. The Company does not currently plan on selling these loans, but it may choose to do so in the future.

Allowance for Loan Loss

The following table is a summary of the activity for the allowance for loan loss for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Allowance for loan loss at beginning of period	$	14,124		$	11,284		$	12,610		$	10,603
Provision for loan losses		705			35			2,831			518
Net (charge-offs) recoveries:
Charge-offs		(42	)		(8	)		(933	)		(165	)
Recoveries		178			37			457			392
Net (charge-offs) recoveries		136			29			(476	)		227
Allowance for loan loss at end of period	$	14,965		$	11,348		$	14,965		$	11,348
Net (charge-offs) recoveries to average loans		0.01	%		0.00	%		(0.03	)%		(0.02	)%

	September 30, 2015			December 31, 2014
Allowance for loan loss to total loans		0.84	%		0.78	%
Allowance for loan loss to total loans accounted for at historical cost, which excludes loans and the related allowance for loans acquired through acquisition		1.30	%		1.39	%

The allowance for losses on unfunded loan commitments to extend credit is primarily related to commercial lines of credit and construction loans. The amount of unfunded loan commitments at September 30, 2015 and December 31, 2014 was $765 million and $720 million, respectively. The inherent risk associated with a loan is evaluated at the same time the credit is extended. However, the allowance held for the commitments is reported in other liabilities within the accompanying consolidated balance sheets and not as part of the allowance for loan loss in the above table. The allowance for losses on unfunded loan commitments to extend credit was $561,000 and $471,000 at September 30, 2015 and December 31, 2014, respectively.

Page 18 of 72

The following tables present, by portfolio segment, the changes in the allowance for loan loss and the recorded investment in loans as of the dates and for the periods indicated (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land			Commercial and Other Real Estate			Other		Total
Three Months Ended September 30, 2015
Allowance for loan loss – Beginning balance	$	6,244	$	1,607		$	5,799		$	474	$	14,124
Provision for loan losses		181		371			143			10		705
Net (charge-offs) recoveries:
Charge-offs		—		—			(42	)		—		(42	)
Recoveries		177		—			1			—		178
Net (charge offs) recoveries		177		—			(41	)		—		136
Ending balance	$	6,602	$	1,978		$	5,901		$	484	$	14,965
Three Months Ended September 30, 2014
Allowance for loan loss – Beginning balance	$	5,385	$	1,422		$	4,426		$	51	$	11,284
Provision for loan losses		333		(205	)		(429	)		336		35
Net (charge-offs) recoveries:
Charge-offs		—		—			(8	)		—		(8	)
Recoveries		36		—			1			—		37
Net (charge-offs) recoveries		36		—			(7	)		—		29
Ending balance	$	5,754	$	1,217		$	3,990		$	387	$	11,348

	Commercial and Industrial			Construction, Land Development and Other Land		Commercial and Other Real Estate			Other		Total
Nine Months Ended September 30, 2015
Allowance for loan loss – Beginning balance	$	5,864		$	1,684	$	4,802		$	260	$	12,610
Provision for loan losses		1,176			294		1,137			224		2,831
Net (charge-offs) recoveries:
Charge-offs		(891	)		—		(42	)		—		(933	)
Recoveries		453			—		4			—		457
Net (charge-offs) recoveries		(438	)		—		(38	)		—		(476	)
Ending balance	$	6,602		$	1,978	$	5,901		$	484	$	14,965
Nine Months Ended September 30, 2014
Allowance for loan loss – Beginning balance	$	5,534		$	1,120	$	3,886		$	63	$	10,603
Provision for loan losses		25			97		72			324		518
Net (charge-offs) recoveries:
Charge-offs		(93	)		—		(72	)		—		(165	)
Recoveries		288			—		104			—		392
Net (charge-offs) recoveries		195			—		32			—		227
Ending balance	$	5,754		$	1,217	$	3,990		$	387	$	11,348

Page 19 of 72

The following tables present both the allowance for loan loss and the associated loan balance classified by loan portfolio segment and by credit evaluation methodology (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
September 30, 2015
Allowance for loan loss:
Individually evaluated for impairment	$	577	$	—	$	—	$	—	$	577
Collectively evaluated for impairment		6,025		1,978		5,901		484		14,388
Purchased credit impaired (loans acquired with deteriorated credit quality)		—		—		—		—		—
Total Allowance for Loan Loss	$	6,602	$	1,978	$	5,901	$	484	$	14,965
Loans receivable:
Individually evaluated for impairment	$	3,446	$	—	$	99	$	—	$	3,545
Collectively evaluated for impairment		552,634		94,353		1,081,258		37,641		1,765,886
Purchased credit impaired (loans acquired with deteriorated credit quality)		382		—		1,534		—		1,916
Total Loans Receivable	$	556,462	$	94,353	$	1,082,891	$	37,641	$	1,771,347

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
December 31, 2014
Allowance for loan loss:
Individually evaluated for impairment	$	222	$	—	$	—	$	—	$	222
Collectively evaluated for impairment		5,642		1,684		4,802		260		12,388
Purchased credit impaired (loans acquired with deteriorated credit quality)		—		—		—		—		—
Total Allowance for Loan Loss	$	5,864	$	1,684	$	4,802	$	260	$	12,610
Loans receivable:
Individually evaluated for impairment	$	1,914	$	—	$	737	$	—	$	2,651
Collectively evaluated for impairment		525,910		72,223		993,195		28,359		1,619,687
Purchased credit impaired (loans acquired with deteriorated credit quality)		693		—		1,692		—		2,385
Total Loans Receivable	$	528,517	$	72,223	$	995,624	$	28,359	$	1,624,723

Page 20 of 72

Credit Quality of Loans

The Company utilizes an internal loan classification system as a means of reporting problem and potential problem loans. Under the Company’s loan risk rating system, loans are classified as “Pass,” with problem and potential problem loans as “Special Mention,” “Substandard,” “Doubtful” and “Loss”. Individual loan risk ratings are updated continuously or at any time the situation warrants. In addition, management regularly reviews problem loans to determine whether any loan requires a classification change, in accordance with the Company’s policy and applicable regulations. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The internal loan classification risk grading system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

• Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. There are several different levels of Pass rated credits, including “Watch” which is considered a transitory grade for pass rated loans that require greater monitoring. Loans not meeting the criteria of special mention, substandard, doubtful or loss that have been analyzed individually as part of the above described process are considered to be pass-rated loans.

• Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. Special Mention loans do not currently expose the Company to sufficient risk to warrant classification as a Substandard, Doubtful or Loss classification, but possess weaknesses that deserve management’s close attention.

• Substandard – loans that have a well-defined weakness based on objective evidence and can be characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

• Doubtful – loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

• Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

The following tables present the risk category of loans by class of loans based on the most recent internal loan classification as of the dates indicated (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
September 30, 2015
Pass	$	527,311	$	94,353	$	1,054,807	$	37,640	$	1,714,111
Special Mention		11,862		—		8,103		—		19,965
Substandard		17,289		—		19,981		1		37,271
Doubtful		—		—		—		—		—
Total	$	556,462	$	94,353	$	1,082,891	$	37,641	$	1,771,347
December 31, 2014
Pass	$	502,624	$	72,223	$	977,525	$	28,358	$	1,580,730
Special Mention		8,738		—		4,878		—		13,616
Substandard		17,155		—		13,221		1		30,377
Doubtful		—		—		—		—		—
Total	$	528,517	$	72,223	$	995,624	$	28,359	$	1,624,723

Page 21 of 72

Age Analysis of Past Due and Non-Accrual Loans

The following tables present an aging analysis of the recorded investment of past due loans and non-accrual loans as of the dates indicated (dollars in thousands):

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Accruing		Total Past Due and Accruing		Total Non- Accrual		Current		Total Loans
September 30, 2015
Commercial and Industrial	$	85	$	11	$	—	$	96	$	3,826	$	552,540	$	556,462
Construction, Land Development and Other Land		—		—		—		—		—		94,353		94,353
Commercial and Other Real Estate		—		391		—		391		478		1,082,022		1,082,891
Other		—		—		—		—		—		37,641		37,641
Total	$	85	$	402	$	—	$	487	$	4,304	$	1,766,556	$	1,771,347

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Accruing		Total Past Due and Accruing		Total Non- Accrual		Current		Total Loans
December 31, 2014
Commercial and Industrial	$	192	$	233	$	—	$	425	$	2,604	$	525,488	$	528,517
Construction, Land Development and Other Land		—		—		—		—		—		72,223		72,223
Commercial and Other Real Estate		354		—		—		354		1,305		993,965		995,624
Other		—		—		—		—		—		28,359		28,359
Total	$	546	$	233	$	—	$	779	$	3,909	$	1,620,035	$	1,624,723

Page 22 of 72

Impaired Loans

Impaired loans are evaluated by comparing the fair value of the collateral, if the loan is collateral dependent, and the present value of the expected future cash flows discounted at the loan’s effective interest rate, if the loan is not collateral dependent.

A valuation allowance is established for an impaired loan when the realizable value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are charged-off to realizable value instead of establishing a valuation allowance and are included, when applicable, in the table below as impaired loans “with no specific allowance recorded.” The valuation allowance disclosed below is included in the allowance for loan loss reported in the consolidated balance sheets as of September 30, 2015 and December 31, 2014.

The following tables present, by loan category, the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, for the dates and periods indicated (dollars in thousands). This table excludes purchased credit impaired loans (loans acquired in acquisitions with deteriorated credit quality) of $3 million and $2 million at September 30, 2015 and December 31, 2014, respectively.

	September 30, 2015						December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no specific allowance recorded:
Commercial and Industrial	$	2,118	$	3,629	$	—	$	520	$	609	$	—
Commercial and Other Real Estate		99		105		—		737		739		—
						—
With a specific allowance recorded:
Commercial and Industrial		1,328		1,479		577		1,394		1,546		222
Total
Commercial and Industrial		3,446		5,108		577		1,914		2,155		222
Commercial and Other Real Estate		99		105		—		737		739		—
Total	$	3,545	$	5,213	$	577	$	2,651	$	2,894	$	222

	Three Months Ended September 30,								Nine Months Ended September 30,
	2015				2014				2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no specific allowance recorded:
Commercial and Industrial	$	2,118	$	—	$	1,051	$	—	$	1,757	$	—	$	1,035	$	34
Commercial and Other Real Estate		99		—		2,960		—		104		—		3,207		—
With a specific allowance recorded:
Commercial and Industrial		1,328		—		1,494		—		1,328		—		1,533		—
Commercial and Other Real Estate		413				—		—		550				—		—
Total:
Commercial and Industrial		3,446		—		2,545		—		3,085		—		2,568		34
Commercial and Other Real Estate		512		—		2,960		—		654		—		3,207		—
Total	$	3,958	$	—	$	5,505	$	—	$	3,739	$	—	$	5,775	$	34

Page 23 of 72

The following is a summary of additional information pertaining to impaired loans for the periods indicated (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Interest foregone on impaired loans	$	81	$	72	$	238	$	346
Cash collections applied to reduce principal balance	$	23	$	18	$	186	$	2,889
Interest income recognized on cash collections	$	—	$	—	$	—	$	34

Troubled Debt Restructuring

The Company’s loan portfolio contains certain loans that have been modified in a Troubled Debt Restructuring (“TDR”), where economic concessions have been granted to borrowers experiencing financial difficulties. Loans are restructured in an effort to maximize collections. Economic concessions can include: reductions to the interest rate, payment extensions, forgiveness of principal or other actions.

The modification process includes evaluation of impairment based on the present value of expected future cash flows, discounted at the effective interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the loan collateral. In these cases, management uses the current fair value of the collateral, less selling costs, to evaluate the loan for impairment. If management determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs and unamortized premium or discount), impairment is recognized through a specific allowance or a charge-off.

The following tables include the recorded investment and unpaid principal balances for troubled debt restructured loans at September 30, 2015 and December 31, 2014 (dollars in thousands). These tables include TDR loans that were purchased credit impaired (“PCI”). As of September 30, 2015, there were two PCI loans that are considered to be TDR loans with a recorded investment of $161,000 and unpaid principal balances of $344,000.

	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized
As of and for the period ended September 30, 2015
Commercial and Industrial	$	1,780	$	2,385	$	—
Commercial and Other Real Estate		99		105		—
Total	$	1,879	$	2,490	$	—

	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized
As of and for the year ended December 31, 2014
Commercial and Industrial	$	530	$	719	$	—
Commercial and Other Real Estate		114		115		—
Total	$	644	$	834	$	—

Page 24 of 72

The following table shows the pre- and post-modification recorded investment in TDR loans by loan segment that have occurred during the periods indicated (dollars in thousands):

	Three Months Ended September 30,
	2015						2014
	Number of Loans		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Troubled Debt Restructured Loans:
Commercial and Industrial		3	$	1,335	$	1,335		—	$	—	$	—
Total		3	$	1,335	$	1,335		—	$	—	$	—

	Nine Months Ended September 30,
	2015						2014
	Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Troubled Debt Restructured Loans:
Commercial and Industrial		3	$	1,335	$	1,335		1	$	224	$	224
Total		3	$	1,335	$	1,335		1	$	224	$	224

There was no interest income recognized for the above troubled debt restructured loans during the three months and nine months ended September 30, 2015 or September 30, 2014.

Three loans were modified or restructured during the three and nine months ended September 30, 2015. There were no loans restructured during the three months ended September 30, 2014. One loan was modified or restructured during the nine months ended September 30, 2014.

Loans are restructured in an effort to maximize collections. Impairment analyses are performed on the Company’s troubled debt restructured loans in conjunction with the normal allowance for loan loss process. The Company’s troubled debt restructured loans are analyzed to ensure adequate cash flow or collateral supports the outstanding loan balance.

There have been no payment defaults in nine months ended September 30, 2015 or September 30, 2014 subsequent to modification on troubled debt restructured loans that have been modified within the last twelve months.

Loans Acquired Through Acquisition

The following table reflects the accretable net discount for loans acquired through acquisition, for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Balance, beginning of period	$	18,255		$	6,412		$	21,402		$	7,912
Accretion, included in interest income		(1,463	)		(813	)		(4,140	)		(2,264	)
Reclassifications (to) from non-accretable yield		(5	)		—			(475	)		(49	)
Balance, end of period	$	16,787		$	5,599		$	16,787		$	5,599

The above table reflects the fair value adjustment on the loans acquired from mergers that will be amortized to loan interest income based on the effective yield method over the remaining life of the loans. These amounts do not include the fair value adjustments on the purchased credit impaired loans acquired from mergers.

Page 25 of 72

Purchased Credit Impaired Loans

PCI loans are acquired loans with evidence of deterioration of credit quality since origination and it is probable at the acquisition date, that the Company will not be able to collect all contractually required amounts.

When the timing and/or amounts of expected cash flows on such loans are not reasonably estimable, no interest is accreted and the loan is reported as a non-accrual loan; otherwise, if the timing and amounts of expected cash flows for PCI loans are reasonably estimable, then interest is accreted and the loans are reported as accruing loans.

The non-accretable difference represents the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows, and also reflects the estimated credit losses in the acquired loan portfolio at the acquisition date and can fluctuate due to changes in expected cash flows during the life of the PCI loans.

The following table reflects the outstanding balance and related carrying value of PCI loans as of the dates indicated (dollars in thousands):

	September 30, 2015				December 31, 2014
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial and Industrial	$	710	$	382	$	1,205	$	693
Commercial and Other Real Estate		2,262		1,534		3,018		1,692
Other		—		—		62		—
Total	$	2,972	$	1,916	$	4,285	$	2,385

The following table reflects the activities in the accretable net discount for PCI loans for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Balance, beginning of period	$	286		$	360		$	324		$	395
Accretion, included in interest income		(20	)		(18	)		(58	)		(53	)
Reclassifications from non-accretable yield		—			—			—			—
Balance, end of period	$	266		$	342		$	266		$	342

Note 8 - Qualified Affordable Housing Project Investments

The Company’s investment in Qualified Affordable Housing Projects that generate Low Income Housing Tax Credits (“LIHTC”) was $3.8 million at September 30, 2015 and $4.2 million at December 31, 2014. The funding liability for the LIHTC was $1 million at September 30, 2015 compared to $3 million at December 31, 2014. The amount of tax credits and other tax benefits recognized was $436,000 and $443,000 for the nine months ended September 30, 2015 and September 30, 2014, respectively. Further, the amount of amortization expense included in the provision for income taxes was $343,000 and $348,000 for the nine months ended September 30, 2015 and September 30, 2014, respectively. See Note 11 – Qualified Affordable Housing Project Investments in the Company’s 10-K financial statements at December 31, 2014 for additional detail regarding the Company’s investment in LIHTC.

Page 26 of 72

Note 9 - Borrowings and Subordinated Debentures

Securities Sold Under Agreements to Repurchase

The Company enters into certain transactions, the legal form of which are sales of securities under agreements to repurchase (“Repos”) at a later date at a set price. Securities sold under agreements to repurchase generally mature within 1 day to 180 days from the issue date and are routinely renewed.

As discussed in Note 6 – Investment Securities, the Company has pledged certain investments as collateral for these agreements. Securities with a fair value of $49 million and $32.3 million were pledged to secure the Repos at September 30, 2015 and December 31, 2014, respectively.

The tables below describe the terms and maturity of the Company’s securities sold under agreements to repurchase as of the dates indicated (dollars in thousands):

	September 30, 2015
Date Issued	Amount		Interest Rate			Original Term		Maturity Date
September 30, 2015	$	16,698		0.10% – 0.25	%		1 day		October 1, 2015
Total	$	16,698		0.22	%

	December 31, 2014
Date Issued	Amount		Interest Rate			Original Term		Maturity Date
December 31, 2014	$	9,411		0.13% – 0.25	%		2 days		January 2, 2015
Total	$	9,411		0.20	%

Federal Home Loan Bank Borrowings

The Company maintains a secured credit facility with the Federal Home Loan Bank of San Francisco “FHLB”, allowing the Company to borrow on an overnight and term basis. The Company’s credit facility with the FHLB is $618 million, which represents approximately 25% of the Bank’s total assets, as reported by the Bank in its June 30, 2015 FFIEC Call Report.

As of September 30, 2015, the Company had $795 million of loan collateral pledged with the FHLB which provides $526 million in borrowing capacity. The Company has $20 million in investment securities pledged with the FHLB to support this credit facility. In addition, the Company must maintain an investment in the Capital Stock of the FHLB. Under the FHLB Act, the FHLB has a statutory lien on the FHLB capital stock that the Company owns and the FHLB capital stock serves as further collateral under the borrowing line.

The Company had no outstanding advances (borrowings) with the FHLB as of September 30, 2015 or December 31, 2014.

Subordinated Debentures

The following table summarizes the terms of each issuance of subordinated debentures outstanding as of September 30, 2015:

Series	Amount (in thousands)			Issuance Date		Maturity Date		Rate Index			Current Rate			Next Reset Date
Trust I	$	6,186			12/10/04		03/15/35		3 month LIBOR + 2.05	%		2.39	%		12/15/15
Trust II		3,093			12/23/05		03/15/36		3 month LIBOR + 1.75	%		2.09	%		12/15/15
Trust III		3,093			06/30/06		09/18/36		3 month LIBOR + 1.85	%		2.19	%		12/15/15
Subtotal		12,372
Unamortized fair value adjustment		(2,715	)
Net	$	9,657

Page 27 of 72

The Company had an aggregate outstanding contractual balance of $12.4 million in subordinated debentures at September 30, 2015. These subordinated debentures were acquired as part of the PC Bancorp merger and were issued to trusts originally established by PC Bancorp, which in turn issued trust preferred securities. These subordinated debentures were issued in three separate series. Each issuance had a maturity of 30 years from their approximate date of issue. All three subordinated debentures are variable rate instruments that reprice quarterly based on the three month LIBOR plus a margin (see tables above). All three subordinated debentures had their interest rates reset in September 2015 at the current three month LIBOR plus their index, and will continue to reprice quarterly through their maturity date. All three subordinated debentures are currently callable at par with no prepayment penalties.

Under Dodd Frank, trust preferred securities are excluded from Tier 1 capital, unless such securities were issued prior to May 19, 2010 by a bank holding company with less than $15 billion in assets. CU Bancorp assumed approximately $12.4 million of junior subordinated debt securities issued to various business trust subsidiaries of Premier Commercial Bancorp and funded through the issuance of approximately $12.0 million of floating rate capital trust preferred securities. These junior subordinated debt securities were issued prior to May 19, 2010. Because CU Bancorp has less than $15 billion in assets, the trust preferred securities that CU Bancorp assumed from Premier Commercial Bancorp continue to be included in Tier 1 capital, subject to a limit of 25% of Tier 1 capital elements.

Interest payments made by the Company on subordinated debentures are considered dividend payments under FRB regulations. Notification to the FRB is required prior to the Company declaring and paying a dividend during any period in which the Company’s quarterly net earnings are insufficient to fund the dividend amount. This notification requirement is included in regulatory guidance regarding safety and soundness surrounding capital and includes other non-financial measures such as asset quality, financial condition, capital adequacy, liquidity, future earnings projections, capital planning and credit concentrations. Should the FRB object to the dividend payments, the Company would be precluded from paying interest on the subordinated debentures after giving notice within 15 days before the payment date. Payments would not commence until approval is received or the Company no longer needs to provide notice under applicable guidance. The Company has the right, assuming no default has occurred, to defer payments of interest on the subordinated debentures at any time for a period not to exceed 20 consecutive quarters. The Company has not deferred any interest payments.

Page 28 of 72

Note 10 - Derivative Financial Instruments

The Company is exposed to certain risks relating to its ongoing business operations and utilizes interest rate swap agreements (“swaps”) as part of its asset/liability management strategy to help manage its interest rate risk position. The Company has two counterparty banks.

Derivative Financial Instruments Acquired from 1st Enterprise

At September 30, 2015, the Company has thirteen interest rate swap agreements with customers and thirteen offsetting interest-rate swaps with a counterparty bank that were acquired as a result of the merger with 1^st Enterprise on November 30, 2014. The swap agreements are not designated as hedging instruments. The purpose of entering into offsetting derivatives not designated as a hedging instrument is to provide the Company a variable-rate loan receivable and provide the customer the financial effects of a fixed-rate loan without creating significant interest rate risk in the Company’s earnings.

The structure of the swaps is as follows: The Company enters into a swap with its customers to allow them to convert variable rate loans to fixed rate loans, and at the same time, the Company enters into a swap with the counterparty bank to allow the Company to pass on the interest-rate risk associated with fixed rate loans. The net effect of the transaction allows the Company to receive interest on the loan from the customer at a variable rate based on LIBOR plus a spread. The changes in the fair value of the swaps primarily offset each other and therefore should not have a significant impact on the Company’s results of operations. Our interest rate swap derivatives acquired from 1^st Enterprise are subject to a master netting arrangement with one counterparty bank. None of our derivative assets and liabilities are offset in the balance sheet.

The Company believes the risk of loss associated with counterparty borrowers relating to interest rate swaps is mitigated as the loans with swaps are underwritten to take into account potential additional exposure, although there can be no assurances in this regard since the performance of the swaps is subject to market and counterparty risk. At September 30, 2015 and December 31, 2014, the total notional amount of the Company’s swaps acquired from 1^st Enterprise was $35 million and $36 million, respectively.

The following tables present the notional amount and the fair values of the asset and liability of the Company’s derivative instruments acquired from 1^st Enterprise as of the dates and periods indicated (dollars in thousands):

	Asset Derivatives
	September 30, 2015		December 31, 2014
Interest rate swap contracts fair value	$	1,298	$	719
Balance sheet location		Accrued Interest Receivable and Other Assets		Accrued Interest Receivable and Other Assets

The following table presents the fair values of the liability of the Company’s derivative instruments acquired from 1^st Enterprise as of the dates indicated (dollars in thousands):

	Liability Derivatives
	September 30, 2015		December 31, 2014
Interest rate swap contracts fair value	$	1,298	$	719
Balance sheet location		Accrued Interest Payable and Other Liabilities		Accrued Interest Payable and Other Liabilities

Page 29 of 72

Derivative Financial Instruments Acquired from PC Bancorp

At September 30, 2015, the Company also has nineteen pay-fixed, receive-variable, interest rate contracts that are designed to convert fixed rate loans into variable rate loans. The Company acquired these interest rate swap contracts on July 31, 2012 as a result of the merger with PC Bancorp. All of the interest rate swap contracts acquired from PC Bancorp are with the same counterparty bank. The outstanding swaps have original maturities of up to 15 years.

The following table presents the notional amount and the fair values of the asset and liability of the Company’s derivative instruments acquired from PC Bancorp as of the dates indicated (dollars in thousands):

	Liability Derivatives
	September 30, 2015		December 31, 2014
Fair Value Hedges
Total interest rate contacts notional amount	$	26,226	$	29,289
Derivatives not designated as hedging instruments:
Interest rate swap contracts fair value	$	394	$	519
Derivatives designated as hedging instruments:
Interest rate swap contracts fair value		1,694		2,277
Total interest rate contracts fair value	$	2,088	$	2,796
Balance sheet location		Accrued Interest Payable and Other Liabilities		Accrued Interest Payable and Other Liabilities

The Effect of Derivative Instruments on the Consolidated Statements of Income

The following table summarizes the effect of all derivative financial instruments on the consolidated statements of income for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Derivatives not designated as hedging instruments:
Interest rate swap contracts – loans
Increase in fair value of interest rate swap contracts	$	41		$	86		$	124		$	179
Payments on interest rate swap contracts on loans		(66	)		(69	)		(198	)		(205	)
Net increase (decrease) in other non-interest income	$	(25	)	$	17		$	(74	)	$	(26	)
Derivatives designated as hedging instruments:
Interest rate swap contracts – loans
Increase in fair value of interest rate swap contracts	$	142		$	361		$	583		$	663
Increase (decrease) in fair value of hedged loans		191			(104	)		279			135
Payment on interest rate swap contracts on loans		(275	)		(317	)		(846	)		(950	)
Net increase (decrease) in interest income on loans	$	58		$	(60	)	$	16		$	(152	)

Under all of the Company’s interest rate swap contracts, the Company is required to pledge and maintain collateral for the credit support under these agreements. At September 30, 2015, the Company has pledged $2 million in investment securities and $3 million in certificates of deposit, for a total of $5 million, as collateral under the swap agreements.

Page 30 of 72

Note 11 – Balance Sheet Offsetting

Assets and liabilities relating to certain financial instruments, including derivatives, and securities sold under repurchase agreements (“Repos”), may be eligible for offset in the consolidated balance sheets as permitted under accounting guidance. The Company’s interest rate swap derivatives are subject to a master bilateral netting and offsetting arrangement under specific conditions as defined within a master agreement governing all interest rate swap contracts that the Company and the counterparty banks have entered into. In addition, the master agreement under which the interest rate contracts have been written require the pledging of assets by the Company based on certain risk thresholds. The Company has pledged a certificate of deposit and investment securities as collateral under the swap agreements. The pledged collateral under the swap agreements are reported in the Company’s consolidated balance sheets, unless the Company defaults under the master agreement. The Company currently does not net or offset the interest rate swap contracts in its consolidated balance sheets, as reflected within the table below.

The Company’s securities sold under repurchase agreements represent transactions the Company has entered into with several deposit customers. These transactions represent the sale of securities on an overnight or on a term basis to our deposit customers under an agreement to repurchase the securities from the customers the next business day or at maturity. There is an individual contract for each customer with only one transaction per customer. There is no master agreement that provides for the netting arrangement or the offsetting of these individual transactions or for the netting of collateral positions. The Company does not net or offset the Repos in its consolidated balance sheets as reflected within the table below.

The table below presents the Company’s financial instruments that may be eligible for offsetting which include securities sold under agreements to repurchase that have no enforceable master netting arrangement and derivative securities that could be offset in the consolidated financial statements due to an enforceable master netting arrangement (dollars in thousands):

	Gross Amounts Recognized in the Consolidated Balance Sheets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets				Net Amount (Collateral over liability balance required to be pledged)
							Financial Instruments		Collateral Pledged
September 30, 2015
Financial Assets:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	1,298	$	—	$	1,298	$	1,298	$	—	$	—
Total	$	1,298	$	—	$	1,298	$	1,298	$	—	$	—
Financial Liabilities:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	3,386	$	—	$	3,386	$	3,386	$	4,306	$	920
Securities sold under agreements to repurchase (See Note 9 – Borrowings and Subordinated Debentures)		16,698		—		16,698		16,698		49,139		32,441
Total	$	20,084	$	—	$	20,084	$	20,084	$	53,445	$	33,361

Page 31 of 72

	Gross Amounts Recognized in the Consolidated Balance Sheets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets				Net Amount (Collateral over liability balance required to be pledged)
							Financial Instruments		Collateral Pledged
December 31, 2014
Financial Assets:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	719	$	—	$	719	$	719	$	—	$	—
Total	$	719	$	—	$	719	$	719	$	—	$	—
Financial Liabilities:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	3,515	$	—	$	3,515	$	3,515	$	4,150	$	635
Securities sold under agreements to repurchase (See Note 9 – Borrowings and Subordinated Debentures)		9,411		—		9,411		9,411		32,304		22,893
Total	$	12,926	$	—	$	12,926	$	12,926	$	36,454	$	23,528

Note 12 - Stock Options and Restricted Stock

Equity Compensation Plans

The Company’s 2007 Equity and Incentive Plan, “Equity Plan,” was adopted by the Company in 2007 and replaced two prior equity compensation plans. The Equity Plan provides for significant flexibility in determining the types and terms of awards that may be made to participants. The Equity Plan was revised and approved by the Company’s shareholders in 2011 and adopted by the Company as part of the Bank holding company reorganization. This plan is designed to promote the interest of the Company in aiding the Company to attract and retain employees, officers and non-employee directors who are expected to contribute to the future success of the organization. The Equity Plan is intended to provide participants with incentives to maximize their efforts on behalf of the Company through stock-based awards that provide an opportunity for stock ownership. This plan provides the Company with a flexible equity incentive compensation program, which allows the Company to grant stock options, restricted stock, restricted stock award units and performance units. Certain options and share awards provide for accelerated vesting, if there is a change in control, as defined in the Equity Plan. These plans are described more fully in Note 16 - Stock Options and Restricted Stock in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

At September 30, 2015, future compensation expense related to unvested restricted stock grants are reflected in the table below (dollars in thousands):

Restricted Stock Expense
Remainder of 2015	$	676
2016		1,879
2017		760
2018		273
2019		31
Thereafter		—
Total	$	3,619

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There was no future compensation expense related to stock options as of September 30, 2015. All stock options outstanding at September 30, 2015 are vested.

Stock Options

There were no stock options granted by the Company in 2012, 2013, 2014, or during the nine months ended September 30, 2015.

The following table summarizes the share option activity under the plans as of the date and for the period indicated:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding stock options at December 31, 2014		1,016,490		$	10.13		1.6	$	11,770
Granted		—
Exercised		(158,315	)
Forfeited		(5,000	)
Expired		—
Outstanding stock options at September 30, 2015		853,175		$	10.26		0.9	$	10,467
Exercisable options at September 30, 2015		853,175		$	10.26		0.9	$	10,467
Unvested options at September 30, 2015		—

The Company recorded stock option compensation expense of $0 and $2,000 for the three months ended September 30, 2015 and 2014, and $1,700 and $8,000 for the nine months period September 30, 2015 and 2014, respectively.

The total intrinsic value of options exercised during the three months ended September 30, 2015 and 2014 was $2 million and $1 million, respectively.

Restricted Stock

The weighted-average grant-date fair value per share in the table below is calculated by taking the total aggregate cost of the restricted shares issued divided by the number of shares of restricted stock issued. The aggregate cost of the restricted stock was calculated by multiplying the number of shares granted at each of the grant dates by the closing stock price of the Company’s common stock on the date of the grant. The following table summarizes the restricted stock activity under the Equity Plan for the period indicated:

	Number of Shares			Weighted-Average Grant-Date Fair Value per Share
Restricted Stock:
Unvested at December 31, 2014		309,506		$	16.41
Granted		77,800			20.95
Vested		(99,750	)		13.42
Cancelled and forfeited		(9,175	)		16.50
Unvested at September 30, 2015		278,381		$	18.74

Restricted stock compensation expense related to the restricted stock grants reflected in the table above was $745,000 and $443,000 for the three month period ended September 30, 2015 and 2014 and $2 million and $1 million for the nine month period ended September 30, 2015 and 2014, respectively. Restricted stock awards reflected in the table above are valued at the closing stock price on the date of grant and are expensed to stock based compensation expense over the period for which the related service is performed. During the three months and nine months ended September 30, 2015, the Company granted 40,000 shares of Restricted Stock Unit (“RSU”), respectively, under the Equity Plan to one of its executive officers. Such grant is not reflected in the table above. The shares of common stock underlying the 40,000 shares of RSU

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will not be issued until the RSUs vest but are outstanding as of September 30, 2015. The RSUs are valued at the closing stock price on the date of grant and are expensed to stock based compensation expense over the period for which the related service is performed.

Note 13 – Shareholders’ Equity

Common Stock

During the first three quarters of 2015, the Company’s issued common stock increased by 187,080 shares, from 16,683,856 shares at December 31, 2014, to 16,870,936 shares at September 30, 2015. During the nine months ended September 30, 2015, the Company issued 158,315 shares of stock from the exercise of employee stock options for a total value of $1,434,000. The Company also granted 77,800 shares of restricted stock awards to the Company’s directors and employees and cancelled 9,175 shares of unvested restricted stock related to employee turnover, resulting in a net issuance of restricted stock of 68,625 shares. Further, the Company cancelled 39,860 shares of restricted stock that had a value of $856,000 when employees elected to pay their tax obligation via the repurchase of the stock by the Company.

The Equity Plan, as amended, allows employees to make an election to have a portion of their restricted stock that became vested during the year repurchased by the Company to provide funds to pay the employee’s tax obligation related to the vesting of the stock.

Preferred Stock

As discussed in Note 3 - Business Combinations, the Company completed the merger with 1^st Enterprise on November 30, 2014. As part of the Merger Agreement, 16,400 shares of preferred stock issued by 1^st Enterprise as part of the Small Business Lending Fund (SBLF) program of the United States Department of the Treasury was converted into substantially 16,400 identical CU Bancorp shares with identical terms. CU Bancorp Preferred Stock has a liquidation preference amount of $1,000 per share, designated as the Company’s Non-Cumulative Perpetual Preferred Stock, Series A. The U.S. Department of the Treasury is the sole holder of all outstanding shares of CU Bancorp Preferred Stock. The CU Bancorp Preferred Stock had an estimated life of four years and the fair value was $15.9 million at the merger date, resulting in a net discount of $479,000. The life-to-date and the year-to-date accretion on the net discount as of September 30, 2015 is $818,000 and $735,000, respectively. The net carrying value of the CU Bancorp Preferred Stock is $16.7 million ($16.4 million plus of $0.3 million net premium) as of September 30, 2015. Dividends on the CU Bancorp Preferred Stock are paid to the U.S. Department of the Treasury on a quarterly basis. See Note 22 - Regulatory Matters, in the Company’s 2014 Form 10-K, for restrictions on dividends.

The Company currently includes the Non-Cumulative Perpetual Preferred Stock, Series A, in its Tier 1 capital. Under Basel III, the CU Bancorp Preferred Stock continues to be included in Tier 1 capital because non-cumulative perpetual preferred stock remained classified as Tier 1 capital following the enactment of Dodd Frank.

Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss) by component for the periods indicated (dollars in thousands):

	Before Tax			Tax Effect			Net of Tax
Three Months Ended – September 30, 2015
Net unrealized gains (losses) on investment securities:
Beginning balance	$	(82	)	$	(34	)	$	(48	)
Net unrealized gains arising during the period		536			225			311
Ending balance	$	454		$	191		$	263
	Before Tax			Tax Effect			Net of Tax
Three Months Ended – September 30, 2014
Net unrealized gains (losses) on investment securities:
Beginning balance	$	331		$	136		$	195
Net unrealized gains arising during the period		19			11			8
Ending balance	$	350		$	147		$	203

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	Before Tax			Tax Effect			Net of Tax
Nine Months Ended – September 30, 2015
Net unrealized gains (losses) on investment securities:
Beginning balance	$	333		$	143		$	190
Net unrealized gains arising during the period		121			48			73
Ending balance	$	454		$	191		$	263
	Before Tax			Tax Effect			Net of Tax
Nine Months Ended – September 30, 2014
Net unrealized gains (losses) on investment securities:
Beginning balance	$	(348	)	$	(143	)	$	(205	)
Net unrealized gains arising during the period		698			290			408
Ending balance	$	350		$	147		$	203

Note 14 - Commitments and Contingencies

Litigation

From time to time the Company is a party to claims and legal proceedings arising in the ordinary course of business. The Company accrues for any probable loss contingencies that are estimable and discloses any material losses. As of September 30, 2015, there were no legal proceedings against the Company the outcome of which are expected to have a material adverse impact on the Company’s financial position, results of operations or cash flows, as a whole.

Financial Instruments with Off Balance Sheet Risk

See Note 21 – Commitments and Contingencies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Financial instruments with off balance sheet risk include commitments to extend credit of $765 million and $720 million at September 30, 2015 and December 31, 2014, respectively. Included in the aforementioned commitments were standby letters of credit outstanding of $70 million and $57 million at September 30, 2015 and December 31, 2014, respectively.

Note 15 - Fair Value of Assets and Liabilities

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including both those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis and a non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value, and for estimating the fair value of financial assets and financial liabilities not recorded at fair value, are discussed below.

In accordance with accounting guidance, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are as follows:

• Level 1 – Observable unadjusted quoted market prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

• Level 2 – Significant other observable market based inputs, other than Level 1 prices such as quoted prices for similar assets or liabilities or unobservable inputs that are corroborated by market data. This includes quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data, either directly or indirectly. This would include those financial instruments that are valued using models or other valuation methodologies where substantially all of the assumptions are observable in the marketplace, can be derived from observable market data or are supported by observable levels at which transactions are executed in the marketplace.

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• Level 3 – Significant unobservable inputs that reflect a reporting entity’s evaluation about the assumptions that market participants would use in pricing an asset or liability. Assets measured utilizing level 3 are for positions that are not traded in active markets or are subject to transfer restrictions, and or where valuations are adjusted to reflect illiquidity and or non-transferability. These assumptions are not corroborated by market data. This is comprised of financial instruments whose fair value is estimated based on internally developed models or methodologies utilizing significant inputs that are generally less readily observable from objective sources. Management uses a combination of reviews of the underlying financial statements, appraisals and management’s judgment regarding credit quality to determine the value of the financial asset or liability.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Management maximizes the use of observable inputs and attempts to minimize the use of unobservable inputs when determining fair value measurements. The following is a description of both the general and specific valuation methodologies used for certain instruments measured at fair value, as well as the general classification of these instruments pursuant to the valuation hierarchy.

Investment Securities Available-for-Sale and Held-to-Maturity: The fair value of securities available-for-sale and held-to-maturity may be determined by obtaining quoted prices in active markets, when available, from nationally recognized securities exchanges (Level 1 financial assets). If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique widely used in the securities industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities which are observable market inputs (Level 2 financial assets). Debt securities’ pricing is generally obtained from one of the matrix pricing models developed from one of the three national pricing agencies. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3 financial assets.

Securities classified as available-for-sale are accounted for at their current fair value rather than amortized historical cost. Unrealized gains or losses are excluded from net income and reported as an amount net of taxes as a separate component of accumulated other comprehensive income included in shareholders’ equity. Securities classified as held-to-maturity are accounted for at their amortized historical cost.

The Company considers the inputs utilized to fair value the U.S. Agency and U.S. Sponsored Agency issued debt securities (callable and non-callable notes), mortgage backed securities guaranteed by those agencies, collateralized mortgage obligations issued by those agencies, corporate bond securities, and municipal securities to be observable market inputs and classified these financial assets within the Level 2 fair value hierarchy. Management bases the fair value for these investments primarily on third party price indications provided by independent pricing sources utilized by the Company’s bond accounting system to obtain market pricing on its individual securities. Vining Sparks, who provides the Company with its bond accounting system, utilizes pricing from three independent third party pricing sources for pricing of securities. These third party pricing sources utilize, quoted market prices or when quoted market prices are not available, then fair values are estimated using nationally recognized third-party vendor pricing models of which the inputs are observable. However, the fair value reported may not be indicative of the amounts that could be realized in an actual market exchange.

The fair value of the Company’s U.S. Agency and U.S. Sponsored Agency callable and non-callable agency securities, mortgage backed securities guaranteed by those agencies, and collateralized mortgage obligations issued by those agencies, corporate bond securities, and municipal securities are calculated using an option adjusted spread model from one of the nationally recognized third-party pricing models. Depending on the assumptions used and the treasury yield curve and other interest rate assumptions, the fair value could vary significantly in the near term.

Loans: The fair value for loans is estimated by discounting the expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities, adjusted for the allowance for loan loss. Loans are segregated by type such as commercial and industrial, commercial real estate, construction and other loans with similar credit characteristics and are further segmented into fixed and variable interest rate loan categories. Expected future cash flows are projected based on contractual cash flows, adjusted for estimated prepayments. The inputs utilized in determining the fair value of loans are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy.

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Impaired Loans: The fair value of impaired loans is determined based on an evaluation at the time the loan is originally identified as impaired, and periodically thereafter, at the lower of cost or fair value. Fair value on impaired loans is measured based on the value of the collateral securing these loans, less costs to sell, if the loan is collateral dependent, or based on the discounted cash flows for non collateral dependent loans. Collateral on collateral dependent loans may be real estate and/or business assets including equipment, inventory and/or accounts receivable and is determined based on appraisals performed by qualified licensed appraisers hired by the Company. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Such discounts are typically significant and unobservable. For unsecured loans, the estimated future discounted cash flows of the business or borrower, are used in evaluating the fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. The inputs utilized in determining the fair value of impaired loans are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy.

Interest Rate Swap Contracts: The fair value of the interest rate swap contracts are provided by independent third party vendors that specializes in interest rate risk management and fair value analysis using a model that utilizes current market data to estimate cash flows of the interest rate swaps utilizing the future London Interbank Offered Rate (“LIBOR”) yield curve for accruing and the future Overnight Index Swap Rate (“OIS”) yield curve for discounting through the maturity date of the interest rate swap contract. The future LIBOR yield curve is the primary input in the valuation of the interest rate swap contracts. Both the LIBOR and OIS yield curves are readily observable in the marketplace. Accordingly, the interest rate swap contracts are classified within Level 2 of the fair value hierarchy.

Other Real Estate Owned: The fair value of other real estate owned is generally based on real estate appraisals (unless more current market information is available) less estimated costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant. The inputs utilized in determining the fair value of other real estate owned are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy.

SBA Servicing Asset: The Company acquired an SBA servicing asset with the PC Bancorp merger and has added to the servicing asset with the sale of SBA loans subsequent to the merger. This servicing asset was initially fair valued at the merger date based on an evaluation by a third party who specializes in fair value analysis. The fair value of this asset was based on the estimated discounted future cash flows utilizing market based discount rates and estimated prepayment speeds. The discount rate was based on the current U.S. Treasury yield curve, plus a spread for marketplace risk associated with these assets. Prepayment speeds were selected based on the historical prepayments of similar SBA pools. The prepayment speeds determine the timing of the cash flows. The SBA servicing asset is amortized over the estimated life of the loans based on an effective yield approach. In addition, the Company’s servicing asset is evaluated regularly for impairment by discounting the estimated future cash flows using market-based discount rates and prepayment speeds. If the calculated present value of the servicing asset declines below the Company’s current carrying value, the servicing asset is written down to its present value. Based on the Company’s methodology in its valuation of the SBA servicing asset, the current carrying value is estimated to approximate the fair value. The inputs utilized in determining the fair value of SBA servicing asset are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy.

Non-Maturing Deposits: The fair values for non-maturing deposits (deposits with no contractual termination date), which include non-interest bearing demand deposits, interest bearing transaction accounts, money market deposits and savings accounts are equal to their carrying amounts, which represent the amounts payable on demand. Because the carrying value and fair value are by definition identical, and accordingly non-maturity deposits are classified within Level 1 of the fair value hierarchy, these balances are not listed in the following tables.

Maturing Deposits: The fair values of fixed maturity certificates of deposit (time deposits) are estimated using a discounted cash flow calculation that applies current market deposit interest rates to the Company’s current certificates of deposit interest rates for similar term certificates. The inputs utilized in determining the fair value of maturing deposits are observable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy.

Securities Sold under Agreements to Repurchase (“Repos”): The fair value of securities sold under agreements to repurchase is estimated based on the discounted value of future cash flows expected to be paid on the deposits. The carrying amounts of Repos with maturities of 90 days or less approximate their fair values. The fair value of Repos with maturities greater than 90 days is estimated based on the discounted value of the contractual future cash flows. The inputs utilized in determining the fair value of securities sold under agreements to repurchase are observable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy.

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Subordinated Debentures: The fair value of the three variable rate subordinated debentures (“debentures”) is estimated using a discounted cash flow calculation that applies the three month LIBOR plus the margin index at September 30, 2015, to the cash flows from the debentures, based on the actual interest rate the debentures were accruing at September 30, 2015. Because all three of the debentures re-priced on September 11, 2015 based on the current three month LIBOR index rate plus the index margin at that date, and with relatively little to no change in the three month LIBOR index rate from the re-pricing date through September 30, 2015, the current face value of the debentures and their calculated fair value are approximately equal. The inputs utilized in determining the fair value of subordinated debentures are observable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy.

Fair Value of Commitments: Loan commitments that are priced on an index plus a margin to a market rate of interest are reported at the carrying value of the loan commitment. Loan commitments on which the committed fixed interest rate is less than the current market rate were insignificant at September 30, 2015 and December 31, 2014.

Interest Rate Risk: The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. In addition, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall rate risk.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the financial assets and financial liabilities measured at fair value on a recurring basis as of the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets – September 30, 2015
Investment securities available-for-sale	$	256,085	$	—	$	256,085	$	—
Interest Rate Swap Contracts		1,298		—		1,298		—
Financial Liabilities – September 30, 2015
Interest Rate Swap Contracts	$	3,386	$	—	$	3,386	$	—
Financial Assets – December 31, 2014
Investment securities available-for-sale	$	226,962	$	—	$	226,962	$	—
Interest Rate Swap Contracts		719		—		719		—
Financial Liabilities – December 31, 2014
Interest Rate Swap Contracts	$	3,515	$	—	$	3,515	$	—

At December 31, 2014 and at September 30, 2015 the Company had no financial assets or liabilities that were measured at fair value on a recurring basis that required the use of significant unobservable inputs (Level 3). Additionally, there were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a recurring basis for the three months and nine months ended September 30, 2015 and 2014.

Assets Measured at Fair Value on a Non-recurring Basis

The Company may be required periodically, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of or during the period.

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There were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a non-recurring basis for the three and nine months ended September 30, 2015.

The following table presents the balances of assets and liabilities measured at fair value on a non-recurring basis by caption and by level within the fair value hierarchy as of the dates indicated (dollars in thousands):

	Recorded Investment Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets – September 30, 2015
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans)	$	751	$	—	$	—	$	751
Other real estate owned		1,292		—		—		1,292
Total	$	2,043	$	—	$	—	$	2,043
Financial Assets – December 31, 2014
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans)	$	1,172	$	—	$	—	$	1,172
Other real estate owned		850		—		—		850
Total	$	2,022	$	—	$	—	$	2,022

The following table presents the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of the dates indicated (dollars in thousands):

	Fair Value		Valuation Methodology	Valuation Model and/or Factors	Unobservable Input Values
Financial Assets – September 30, 2015
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off	$	751	Credit loss estimate of aged accounts receivable collateral	Credit loss factors on aging of accounts receivable collateral	20%-80%
				Estimated selling costs	16%
Other real estate owned		1,292	Commercial real estate appraisal; Executed sale contract	Sales approach Estimated selling costs	6%
Total	$	2,043
Financial Assets – December 31, 2014
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off	$	1,172	Credit loss estimate of aged accounts receivable collateral	Credit loss factors on aging of accounts receivable collateral	10%-80%
				Estimated selling costs	15%
Other real estate owned		850	Residential real estate appraisal	Sales approach Estimated selling costs	6%
Total	$	2,022

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Fair Value of Financial Assets and Liabilities

ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or on a non-recurring basis. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company could have realized in a current market exchange as of September 30, 2015 and December 31, 2014. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The description of the valuation methodologies used for assets and liabilities measured at fair value and for estimating fair value for financial instruments not recorded at fair value has been described above.

The table below presents the carrying amounts and fair values of financial instruments based on their fair value hierarchy indicated (dollars in thousands):

					Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2015
Financial Assets
Investment securities available-for-sale	$	256,085		256,085	$	—	$	256,085	$	—
Investment securities held-to-maturity		43,269		43,422		—		43,422		—
Loans, net		1,756,382		1,797,338		—		—		1,797,338
Interest rate swap contracts		1,298		1,298		—		1,298		—
Financial Liabilities
Certificates of deposit		62,320		62,320		—		62,320		—
Securities sold under agreements to repurchase		16,698		16,698		—		16,698		—
Subordinated debentures		9,657		12,372		—		12,372		—
Interest rate swap contracts		3,386		3,386		—		3,386		—
December 31, 2014
Financial Assets
Investment securities available-for-sale	$	226,962		226,962	$	—	$	226,962	$	—
Investment securities held-to-maturity		47,147		47,159		—		47,159		—
Loans, net		1,612,113		1,627,717		—		—		1,627,717
Interest rate swap contracts		719		719		—		719		—
Financial Liabilities
Certificates of deposit		64,840		64,857		—		64,857		—
Securities sold under agreements to repurchase		9,411		9,411		—		9,411		—
Subordinated debentures		9,538		12,372		—		12,372		—
Interest rate swap contracts		3,515		3,515		—		3,515		—

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

See “Cautionary Statement for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995” below relating to “forward-looking” statements included in this report.

The following is management’s discussion and analysis of the major factors that influenced the results of the operations and financial condition of CU Bancorp, (“the Company”) for the current period. This analysis should be read in conjunction with the audited financial statements and accompanying notes included in the Company’s 2014 Annual Report on Form 10-K and with the unaudited financial statements and notes as set forth in this report.

CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

We have made forward-looking statements in this document about the Company, for which the Company claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

The Company’s forward-looking statements include descriptions of plans or objectives of management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “assume,” “plan,” “predict” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.”

We make forward-looking statements as set forth above and regarding projected sources of funds, availability of acquisition and growth opportunities, dividends, adequacy of our allowance for loan losses and provision for loan losses, our loan portfolio and subsequent charge-offs. Forward-looking statements involve substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. There are many factors that could cause actual results to differ materially from those contemplated by these forward-looking statements. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations and projections expressed in forward-looking statements include those set forth in our filings with the SEC, Item 1A of our Annual Report on Form 10-K, and the following:

• Current and future economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values, high unemployment rates and overall slowdowns in economic growth should these events occur.

• The effects of trade, monetary and fiscal policies and laws.

• Possible losses of businesses and population in Los Angeles, Orange, Ventura, San Bernardino or Riverside Counties.

• Loss of customer checking and money-market account deposits as customers pursue other higher-yield investments, particularly in a rising interest rate environment.

• Possible changes in consumer and business spending and saving habits and the related effect on our ability to increase assets and to attract deposits.

• Competitive market pricing factors.

• Deterioration in economic conditions that could result in increased loan losses.

• Risks associated with concentrations in real estate related loans.

• Risks associated with concentrations in deposits.

• Loss of significant customers.

• Market interest rate volatility.

• Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans.

• Changes in the speed of loan prepayments, loan origination and sale volumes, loan loss provisions, charge offs or actual loan losses.

• Compression of our net interest margin.

• Stability of funding sources and continued availability of borrowings to the extent necessary.

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• Changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth.

• The inability of our internal disclosure controls and procedures to prevent or detect all errors or fraudulent acts.

• Inability of our framework to manage risks associated with our business, including operational risk and credit risk, to mitigate all risk or loss to us.

• Our ability to keep pace with technological changes, including our ability to identify and address cyber-security risks such as data security breaches, “denial of service” attacks, “hacking” and identity theft.

• The effects of man-made and natural disasters, including earthquakes, floods, droughts, brush fires, tornadoes and hurricanes.

• The effect of labor and port slowdowns on small businesses.

• Risks of loss of funding of Small Business Administration or SBA loan programs, or changes in those programs.

• Lack of take-out financing or problems with sales or lease-up with respect to our construction loans.

• Our ability to recruit and retain key management and staff.

• Availability of, and competition for, acquisition opportunities.

• Risks associated with merger and acquisition integration.

• Significant decline in the market value of the Company that could result in an impairment of goodwill.

• Regulatory limits on the Bank’s ability to pay dividends to the Company.

• New accounting pronouncements.

• The impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) and related rules and regulations on the Company’s business operations and competitiveness.

• Our ability to comply with applicable capital and liquidity requirements (including the finalized Basel III capital standards), including our ability to generate capital internally or raise capital on favorable terms.

• Increased regulation of the securities markets, including the securities of the Company, whether pursuant to the Sarbanes-Oxley Act of 2002, or otherwise.

• The effects of any damage to our reputation resulting from developments related to any of the items identified above.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.

For a more complete discussion of these risks and uncertainties, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and particularly, Item 1A, titled “Risk Factors.”

OVERVIEW

CU Bancorp (the “Company”) is a bank holding company whose operating subsidiary is California United Bank. As a bank holding company, CU Bancorp is subject to regulation of the Federal Reserve Board (“FRB”). The term “Company”, as used throughout this document, refers to the consolidated balance sheets and consolidated statements of income of CU Bancorp and California United Bank.

California United Bank (the “Bank”) is a full-service commercial business bank offering a broad range of banking products and services including: deposit services, lending and cash management to small and medium-sized businesses in Los Angeles, Orange, Ventura and San Bernardino counties, to non-profit organizations, to business principals and entrepreneurs, to the professional community, including attorneys, certified public accountants, financial advisors, healthcare providers and investors. The Bank opened for business in 2005, with its current headquarters office located in Los Angeles, California. As a state chartered non-member bank, the Bank is subject to regulation by the California Department of Business Oversight, (the “DBO”) and the Federal Deposit Insurance Corporation (“FDIC”). The deposits of the Bank are insured by the FDIC, to the maximum amount allowed by law.

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Total assets increased $389 million or 15% from December 31, 2014 to $2.6 billion at September 30, 2015, mainly due to deposit growth of $312 million and earnings available to common shareholders of $15 million. Loan growth during the period was concentrated primarily in Commercial and Industrial loans of $28 million, Owner-Occupied Nonresidential Property loans of $37 million and Other Nonresidential Property loans of $34 million. Funding the loan growth of the Company for the nine months ended September 30, 2015 were increases in non-interest bearing demand deposits of $216 million, interest bearing deposits of $51 million and money market and savings deposit of $48 million. At September 30, 2015 and December 31, 2014, non-interest bearing deposits represented 55% and 53% of total deposits, respectively.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of our financial statements. Actual results may differ from these estimates under different assumptions or conditions.

Various elements of our accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions, and other subjective assessments. We have identified several accounting policies that, due to judgments, estimates, and assumptions inherent in those policies, are essential to an understanding of our consolidated financial statements. These policies relate to the methodologies that determine our allowance for loan loss, the valuation of impaired loans, the classification and valuation of investment securities, accounting for and valuation of derivatives and hedging activities, accounting for business combinations, evaluation of goodwill for impairment, and accounting for income taxes.

Our critical accounting policies are described in greater detail in the Company’s 2014 Annual Report on Form 10-K, Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations –Critical Accounting Policies and Estimates. We believe that our most critical accounting policies upon which our financial condition depends, and which involve the most complex or subjective decisions or assessment, are as follows:

Allowance for Loan Loss

The allowance for loan loss (“Allowance”) is established by a provision for loan losses that is charged against income, increased by charges to expense and decreased by charge-offs (net of recoveries). Loan charge-offs are charged against the Allowance when management believes the collectability of loan principal becomes unlikely. Subsequent recoveries, if any, are credited to the Allowance.

The Allowance is an amount that management believes will be adequate to absorb estimated charge-offs related to specifically identified loans, as well as probable loan losses inherent in the balance of the loan portfolio, based on an evaluation of the collectability of existing loans and prior loss experience. Management carefully monitors changing economic conditions, the concentrations of loan categories and collateral, the financial condition of the borrowers, the history of the loan portfolio, as well as historical peer group loan loss data to determine the adequacy of the Allowance. The Allowance is based upon estimates, and actual charge-offs may vary from the estimates. No assurance can be given that adverse future economic conditions will not lead to delinquent loans, increases in the provision for loan losses and/or charge-offs. These evaluations are inherently subjective, as they require estimates that are susceptible to significant revisions as conditions change. In addition, regulatory agencies, as an integral part of their examination process, may require additions to the Allowance based on their judgment about information available at the time of their examinations. Management believes that the Allowance as of September 30, 2015 is adequate to absorb known and probable losses in the loan portfolio.

The Allowance consists of specific and general components. The specific component relates to loans that are categorized as impaired. For loans that are categorized as impaired, a specific allowance is established when the realizable value of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on the type of loan and historical charge-off experience adjusted for qualitative factors.

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While the general allowance covers all non-impaired loans and is based on historical loss experience adjusted for the various qualitative factors, the change in the Allowance from one reporting period to the next may not directly correlate to the rate of change of nonperforming loans for the following reasons:

• A loan moving from the impaired performing status to an impaired non-performing status does not mandate an automatic increase in the allowance. The individual loan is evaluated for a specific allowance requirement when the loan moves to the impaired status, not when the loan moves to non-performing status. In addition, the impaired loan is reevaluated at each subsequent reporting period. Impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent.

• Not all impaired loans require a specific allowance. The payment performance of the borrower may require an impaired classification, but the collateral evaluation may support adequate collateral coverage. For a number of impaired loans in which borrower performance is in question, the collateral coverage may be sufficient because a partial charge off of the loan has been taken. In those instances, neither a general allowance nor a specific allowance is assessed.

Investment Securities

The Company currently classifies its investment securities under the available-for-sale and held-to-maturity classification. Under the available-for-sale classification, securities can be sold in response to certain conditions, such as changes in interest rates, changes in the credit quality of the securities, when the credit quality of a security does not conform with current investment policy guidelines, fluctuations in deposit levels, loan demand or need to restructure the portfolio to better match the maturity or interest rate characteristics of liabilities with assets. Securities classified as available-for-sale are accounted for at their current fair value rather than amortized cost. Unrealized gains or losses are excluded from net income and reported as a separate component of accumulated other comprehensive income (loss) included in shareholders’ equity. Under the held-to-maturity classification, if the Company has the intent and the ability at the time of purchase to hold these securities until maturity, they are classified as held-to-maturity and are stated at amortized cost.

As of each reporting date, the Company evaluates the securities portfolio to determine if there has been an other-than-temporary impairment (“OTTI”) on each of the individual securities in the investment securities portfolio. If it is probable that the Company will be unable to collect all amounts due according to the contractual terms of a debt security not impaired at acquisition, an OTTI shall be considered to have occurred. Once an OTTI is considered to have occurred, the credit portion of the loss is required to be recognized in current earnings, while the non-credit portion of the loss is recorded as a separate component of shareholders’ equity.

In estimating whether an other-than-temporary impairment loss has occurred, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the current liquidity and volatility of the market for each of the individual security categories, (iv) the current slope and shape of the Treasury yield curve, along with where the economy is in the current interest rate cycle, (v) the spread differential between the current spread and the long-term average spread for that security category, (vi) the projected cash flows from the specific security type, (vii) any financial guarantee and financial condition of the guarantor and (viii) the intent and ability of the Company to retain its investment in the issue for a period of time sufficient to allow for any anticipated recovery in fair value.

If it’s determined that an OTTI exists on a debt security, the Company then determines if (a) it intends to sell the security or (b) it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of the conditions is met, the Company will recognize the amount of the OTTI in earnings equal to the difference between the security’s fair value and its adjusted cost basis. If neither of the conditions is met, the Company determines (a) the amount of the impairment related to credit loss and (b) the amount of the impairment due to all other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost basis is the credit loss. The credit loss is the portion of the other-than-temporary impairment that is recognized in earnings and is a reduction to the cost basis of the security. The portion of total impairment related to all other factors is included in other comprehensive income. Significant judgment is required in this analysis that includes, but is not limited to assumptions regarding the collectability of principal and interest, future default rates, future prepayment speeds, the amount of current delinquencies that will result in defaults and the amount of eventual recoveries expected on these defaulted loans through the foreclosure process.

Realized gains and losses on sales of securities are recognized in earnings at the time of sale and are determined on a specific-identification basis. Purchase premiums and discounts are recognized in interest income using the interest method

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over the expected maturity term of the securities. For mortgage-backed securities, the amortization or accretion is based on estimated average lives of the securities. The lives of these securities can fluctuate based on the amount of prepayments received on the underlying collateral of the securities. The amount of prepayments varies from time to time based on the interest rate environment and the rate of turnover of mortgages.

Derivative Financial Instruments and Hedging Activities

All derivative instruments (interest rate swap contracts) were recognized on the consolidated balance sheet at their current fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and hedged item related to the hedged risk are recognized in earnings. ASC Topic 815 establishes the accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. ASC Topic 815 requires that changes in the derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Accounting for qualifying hedges allows a derivative’s gains and losses to offset related results on the hedged item in the income statement, and requires that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting.

On the date a derivative contract is entered into by the Company, the Company will designate the derivative contract as either a fair value hedge (i.e. a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e. a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a stand-alone derivative (i.e. an instrument with no hedging designation). For a derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income and are recognized in the income statement when the hedged item affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as other non-interest income. The Company also formally assesses the hedge’s current effectiveness in offsetting changes in the fair values of the hedged items. On an ongoing basis, the derivatives that are used in hedging transactions are evaluated as to how effective they are in offsetting changes in fair values or cash flows of hedged items.

The Company will discontinue hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting change in the fair value of the hedged item, the derivative expires or is sold, is terminated, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued, the Company will continue to carry the derivative on the balance sheet at its fair value (if applicable), but will no longer adjust the hedged asset or liability for changes in fair value. The adjustments of the carrying amount of the hedged asset or liability will be accounted for in the same manner as other components of the carrying amount of that asset or liability, and the adjustments are amortized to interest income over the remaining life of the hedged item upon the termination of hedge accounting.

Business Combinations

The Company has a number of fair value adjustments recorded within the consolidated financial statements at September 30, 2015 that were created from the business combinations with California Oaks State Bank (COSB), Premier Commercial Bancorp (PC Bancorp) and 1^st Enterprise Bank (1^st Enterprise) on December 31, 2010, July 31, 2012 and November 30, 2014, respectively. These fair value adjustments include the Company’s goodwill, fair value adjustments on loans, core deposit intangible assets, other intangible assets, fair value adjustments to acquired lease obligations, fair value adjustments to high rate certificates of deposit and fair value adjustments on derivatives. The assets and liabilities acquired through acquisition have been accounted for at fair value as of the date of the acquisition. The goodwill that was recorded on the transactions represented the excess of the purchase price over the fair value of net assets acquired. If the consideration paid would have been less than the fair value of the net assets acquired, the Company would have recorded a bargain purchase gain. Goodwill is not amortized and is reviewed for impairment on October 1st of each year. If an event occurs or circumstances change that results in it being probable that the Company’s fair value has declined below its book value, the Company would perform an impairment analysis at that time.

The core deposit intangibles on non-maturing deposits, which represent the intangible value of depositor relationships resulting from deposit liabilities assumed through acquisition, are being amortized over the projected useful lives of the deposits. The average remaining life of the core deposit intangible is estimated at approximately 7 years at September 30, 2015. Core deposit intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

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Purchased Credit Impaired (“PCI”) loans are acquired loans with evidence of deterioration of credit quality since origination and it is probable at the acquisition date, that the Company will not be able to collect all contractually required amounts. When the timing and/or amounts of expected cash flows on such loans are not reasonably estimable, no interest is accreted and the loan is reported as a non-accrual loan; otherwise, if the timing and amounts of expected cash flows for PCI loans are reasonably estimable, then interest is accreted and the loans are reported as accruing loans. The non-accretable portion represents the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows, and also reflects the estimated credit losses in the acquired loan portfolio at the acquisition date and can fluctuate due to changes in expected cash flows during the life of the PCI loans. For non-PCI loans, loan fair value adjustments consist of an interest rate premium or discount and a credit component on each individual loan and are amortized to loan interest income based on the effective yield method over the remaining life of the loans.

Income Taxes

Deferred income tax assets and liabilities are computed using the asset and liability method, which recognizes a liability or asset representing the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. A valuation allowance is established to the extent necessary to reduce the deferred tax asset to the level at which it is “more likely than not” that the tax assets or benefits will be realized. Realization of tax benefits for deductible temporary differences and operating loss carryforwards depends on having sufficient taxable income of an appropriate character within the carryback and carryforward period and that current tax law will allow for the realization of those tax benefits.

The Company is required to account for uncertainty associated with the tax positions it has taken or expects to be taken on past, current and future tax returns. Where there may be a degree of uncertainty as to the tax realization of an item, the Company may only record the tax effects (expense or benefits) from an uncertain tax position in the financial statements if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. The Company does not believe that it has any material uncertain tax positions taken to date that are not more likely than not to be realized.

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RESULTS OF OPERATIONS

Key Profitability Measures

The following table presents key profitability measures for the periods indicated and the dollar and percentage changes between the periods (dollars in thousands, except per share data):

	Three Months Ended September 30,												Nine Months Ended September 30,
	Amounts						Increase (Decrease)						Amounts						Increase (Decrease)
	2015			2014			$			%			2015			2014			$			%
Net Income Available to Common Shareholders	$	5,970		$	2,549		$	3,421			134.21	%	$	14,852		$	7,601		$	7,251			95.40	%
Earnings per share
Basic	$	0.36		$	0.23		$	0.13			56.52	%	$	0.90		$	0.70		$	0.20			28.57	%
Diluted	$	0.35		$	0.23		$	0.12			52.17	%	$	0.88		$	0.68		$	0.20			29.41	%
Return on average tangible common equity		11.48	%		7.52	%		3.96	%		53	%		9.95	%		7.77	%		2.18	%		28.06	%
Return on average assets		0.93	%		0.69	%		0.24	%		34.78	%		0.82	%		0.72	%		0.10	%		13.89	%
Net interest rate spread		3.65	%		3.53	%		0.12	%		3.40	%		3.73	%		3.62	%		0.11	%		3.04	%
Net interest margin		3.79	%		3.70	%		0.09	%		2.43	%		3.87	%		3.80	%		0.07	%		1.84	%
Efficiency ratio (1)		59.34	%		67.91	%		8.57	%		(12.62	)%		61.49	%		67.95	%		(6.46	)%		(9.51	)%

(1) Efficiency ratio is defined as non-interest expense as a percent of net interest income plus non-interest income, excluding gain on sale of securities, net.

Operations Performance Summary

Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014

Net income available to common shareholders for the three months ended September 30, 2015 was $6.0 million, or $0.35 per diluted share, compared to $2.5 million, or $0.23 per diluted share for the three months ended September 30, 2014. The $3.4 million increase, or 134%, was primarily due to a $9.0 million increase in net interest income after provision for loan losses and a $984,000 increase in non-interest income, offset by a $5.0 million increase in non-interest expense and a $1.2 million increase in provision for income tax expense. These increases are due to strong organic loan growth, coupled with the merger with 1st Enterprise on November 30, 2014. Salaries and employee benefits increased $3.7 million for the three months ended September 30, 2015, due to a larger employee base as a result of the merger. Occupancy expense also increased $466,000 for the same period due to additional locations. Further, core deposit intangible amortization increased $354,000 for the three months ended September 30, 2015, mainly due to the $7.4 million core deposit intangible recognized from the 1st Enterprise merger. Merger expenses were lower by $485,000 compared to the three months ended September 30, 2014. Each of these increases and or decreases is more fully described below.

Nine Months Ended September 30, 2015 Compared to Nine Months Ended September 30, 2014

Net income available to common shareholders for the nine months ended September 30, 2015 was $14.9 million, or $0.88 per diluted share, compared to $7.6 million, or $0.68 per diluted share for the nine months ended September 30, 2014. The $7.3 million increase, or 95%, was primarily due to a $24.5 million increase in net interest income after provision for loan losses and a $3.1 million increase in non-interest income, offset by a $15.6 million increase in non-interest expense and a $3.9 million increase in provision for income tax expense. These increases are due to strong organic loan growth coupled with the merger with 1st Enterprise on November 30, 2014. Salaries and employee benefits increased $10.3 million for the nine months ended September 30, 2015, due to a larger employee base as a result of the merger. Occupancy expense also increased $1.3 million for the same period due to additional locations. Further, core deposit intangible amortization increased $1.1 million for the nine months ended September 30, 2015, mainly due to the $7.4 million core deposit intangible recognized from the 1st Enterprise merger. Provision for loan losses also increased $2.3 million, as a result of strong organic loan growth and net charge-offs of $476,000. Merger expenses were lower by $630,000 compared to the nine months ended September 30, 2014. Each of these increases and or decreases is more fully described below.

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Average Balances, Interest Income and Expense, Yields and Rates

The following tables present the Company’s average balance sheets, together with the total dollar amounts of interest income and interest expense and the weighted average interest yield/rate for the periods presented. All average balances are daily average balances (dollars in thousands).

	Three Months Ended
	September 30, 2015							September 30, 2014
	Average Balance		Interest		Average Yield/Rate (5)			Average Balance		Interest		Average Yield/Rate (5)
Interest Earning Assets:
Deposits in other financial institutions	$	329,640	$	293		0.35	%	$	278,623	$	248		0.35	%
Investment securities (2)		281,476		1,124		1.60	%		121,124		589		1.95	%
Loans (1)		1,735,977		21,689		4.96	%		969,668		12,401		5.07	%
Total interest-earning assets		2,347,093		23,106		3.91	%		1,369,415		13,238		3.84	%
Non-interest-earning assets		212,301							91,123
Total Assets	$	2,559,394						$	1,460,538
Interest Bearing Liabilities:
Interest bearing transaction accounts	$	268,877	$	105		0.15	%	$	150,160	$	70		0.18	%
Money market and savings deposits		701,189		427		0.24	%		363,693		225		0.25	%
Certificates of deposit		61,243		53		0.34	%		59,362		58		0.39	%
Total Interest Bearing Deposits		1,031,309		585		0.23	%		573,215		353		0.24	%
Securities sold under agreements to repurchase		15,306		9		0.23	%		14,210		8		0.22	%
Subordinated debentures		9,703		110		4.44	%		9,740		109		4.38	%
Total Interest Bearing Liabilities		1,056,318		704		0.26	%		597,165		470		0.31	%
Non-interest bearing demand deposits		1,190,170							699,592
Total funding sources		2,246,488							1,296,757
Non-interest bearing liabilities		17,717							16,041
Shareholders’ Equity		295,189							147,740
Total Liabilities and Shareholders’ Equity	$	2,559,394						$	1,460,538
Excess of interest-earning assets over funding sources	$	100,605						$	72,658
Net interest income			$	22,402						$	12,768
Net interest rate spread (3)						3.65	%						3.53	%
Net interest margin (4)						3.79	%						3.70	%
Core net interest margin (6)						3.64	%						3.58	%

(1) Average balances of loans are calculated net of deferred loan fees and fair value discounts, but would include non-accrual loans which have a zero yield.

(2) Average balances of investment securities are presented on an amortized cost basis and thus do not include the unrealized market gain or loss on the securities.

(3) Net interest rate spread represents the yield earned on average total interest-earning assets less the rate paid on average total interest bearing liabilities.

(4) Net interest margin is computed by dividing annualized net interest income by average total interest-earning assets.

(5) Annualized

(6) Core net interest margin is computed by dividing annualized net interest income, excluding accelerated accretion of fair value discounts earned on early loan payoffs of acquired loans and interest recovered or reversed on non-accrual loans, by average total interest-earning assets. See the reconciliation table for core net interest margin.

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	Nine Months Ended
	September 30, 2015							September 30, 2014
	Average Balance		Interest		Average Yield/Rate (5)			Average Balance		Interest		Average Yield/Rate (5)
Interest Earning Assets:
Deposits in other financial institutions	$	264,560	$	741		0.37	%	$	261,617	$	665		0.34	%
Investment securities (2)		272,820		3,355		1.64	%		109,160		1,557		1.90	%
Loans (1)		1,686,967		62,239		4.93	%		950,427		36,691		5.16	%
Total interest-earning assets		2,224,347		66,335		3.99	%		1,321,204		38,913		3.94	%
Non-interest-earning assets		209,094							91,283
Total Assets	$	2,433,441						$	1,412,487
Interest Bearing Liabilities:
Interest bearing transaction accounts	$	254,092	$	303		0.16	%	$	142,575	$	194		0.18	%
Money market and savings deposits		681,852		1,218		0.24	%		363,603		681		0.25	%
Certificates of deposit		61,875		150		0.32	%		61,013		169		0.37	%
Total Interest Bearing Deposits		997,819		1,671		0.22	%		567,191		1,044		0.25	%
Securities sold under agreements to repurchase		12,896		21		0.22	%		13,870		27		0.26	%
Subordinated debentures		9,624		326		4.47	%		9,527		323		4.47	%
Total Interest Bearing Liabilities		1,020,339		2,018		0.26	%		590,588		1,394		0.32	%
Non-interest bearing demand deposits		1,106,491							661,883
Total funding sources		2,126,830							1,252,471
Non-interest bearing liabilities		17,892							15,787
Shareholders’ Equity		288,719							144,229
Total Liabilities and Shareholders’ Equity	$	2,433,441						$	1,412,487
Excess of interest-earning assets over funding sources	$	97,517						$	68,733
Net interest income			$	64,317						$	37,519
Net interest rate spread (3)						3.73	%						3.62	%
Net interest margin (4)						3.87	%						3.80	%
Core net interest margin (6)						3.77	%						3.65	%

(1) Average balances of loans are calculated net of deferred loan fees and fair value discounts, but would include non-accrual loans which have a zero yield.

(2) Average balances of investment securities are presented on an amortized cost basis and thus do not include the unrealized market gain or loss on the securities.

(3) Net interest rate spread represents the yield earned on average total interest-earning assets less the rate paid on average total interest bearing liabilities.

(4) Net interest margin is computed by dividing annualized net interest income by average total interest-earning assets.

(5) Annualized

(6) Core net interest margin is computed by dividing annualized net interest income, excluding accelerated accretion of fair value discounts earned on early loan payoffs of acquired loans and interest recovered or reversed on non-accrual loans or other nonrecurring items based on management’s judgment, by average total interest-earning assets. See the reconciliation table for core net interest margin.

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The following table represents a reconciliation of GAAP net interest margin to core net interest margin used by the Company. The table presents the information for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net Interest Income	$	22,402		$	12,768		$	64,317		$	37,519
Less: Accelerated accretion of fair value adjustment on early loan payoffs and other associated payoff benefits		881			403			1,666			1,405
Core Net Interest Income	$	21,521		$	12,365		$	62,651		$	36,114
Net interest margin		3.79	%		3.70	%		3.87	%		3.80	%
Core net interest margin		3.64	%		3.58	%		3.77	%		3.65	%

The following table reflects the composition of the net deferred loan fees, costs and fair value discounts at September 30, 2015 and December 31, 2014 (dollars in thousands):

	September 30, 2015		December 31, 2014
Accreting loan discount	$	17,053	$	21,726
Non-accreting loan discount		934		567
Acquired loans remaining discount		17,987		22,293
Organic loans net deferred fees		4,085		3,471
Total	$	22,072	$	25,763

Page 50 of 72

Net Changes in Average Balances, Composition, Yields and Rates

The following tables set forth the composition of average interest-earning assets and average interest-bearing liabilities by category and by the percentage of each category to the total for the periods indicated, including the change in average balance, composition, and yield/rate between these respective periods (dollars in thousands):

	Three Months Ended September 30,
	2015								2014								Increase (Decrease)
	Average Balance		% of Total			Average Yield/ Rate			Average Balance		% of Total			Average Yield/ Rate			Average Balance			% of Total			Average Yield/ Rate
Interest-Earning Assets:
Deposits in other financial institutions	$	329,640		14.0	%		0.35	%	$	278,623		20.3	%		0.35	%	$	51,017			(6.3	)%		0.0	%
Investment securities		281,476		12.0	%		1.60	%		121,124		8.8	%		1.95	%		160,352			3.1	%		(0.35	)%
Loans		1,735,977		74.0	%		4.96	%		969,668		70.8	%		5.07	%		766,309			3.2	%		(0.11	)%
Total interest-earning assets	$	2,347,093		100.0	%		3.91	%	$	1,369,415		100.0	%		3.84	%	$	977,678			0.0	%		0.07	%
Interest-Bearing Liabilities:
Non-interest bearing demand deposits	$	1,190,170		53.0	%		—		$	699,592		53.9	%		—		$	490,578			(1.0	)%		—
Interest-bearing transaction accounts		268,877		12.0	%		0.15	%		150,160		11.6	%		0.18	%		118,717			0.4	%		(0.03	)%
Money market and savings deposits		701,189		31.2	%		0.24	%		363,693		28.0	%		0.25	%		337,496			3.2	%		(0.01	)%
Certificates of deposit		61,243		2.7	%		0.34	%		59,362		4.6	%		0.39	%		1,881			(1.9	)%		(0.05	)%
Total deposits		2,221,479		98.9	%		0.10	%		1,272,807		98.2	%		0.11	%		948,672			0.7	%		(0.01	)%
Securities sold under agreements to repurchase		15,306		0.7	%		0.23	%		14,210		1.1	%		0.22	%		1,096			(0.4	)%		(0.01	)%
Subordinated debentures		9,703		0.4	%		4.44	%		9,740		0.8	%		4.38	%		(37	)		(0.3	)%		0.06	%
Total borrowings		25,009		1.1	%		1.89	%		23,950		1.8	%		1.94	%		1,059			(0.7	)%		(0.05	)%
Total funding sources	$	2,246,488		100.0	%		0.12	%	$	1,296,757		100.0	%		0.14	%	$	949,731			0.0	%		(0.02	)%

Page 51 of 72

	Nine Months Ended September 30,
	2015								2014								Increase (Decrease)
	Average Balance		% of Total			Average Yield/ Rate			Average Balance		% of Total			Average Yield/ Rate			Average Balance			% of Total			Average Yield/ Rate
Interest-Earning Assets:
Deposits in other financial institutions	$	264,560		11.9	%		0.37	%	$	261,617		19.8	%		0.34	%	$	2,943			(7.9	)%		0.03	%
Investment securities		272,820		12.3	%		1.64	%		109,160		8.3	%		1.90	%		163,660			4.0	%		(0.26	)%
Loans		1,686,967		75.8	%		4.93	%		950,427		71.9	%		5.16	%		736,540			3.9	%		(0.23	)%
Total interest-earning assets	$	2,224,347		100.0	%		3.99	%	$	1,321,204		100.0	%		3.94	%	$	903,143			0.0	%		0.05	%
Interest-Bearing Liabilities:
Non-interest bearing demand deposits	$	1,106,491		52.0	%		—		$	661,883		52.8	%		—		$	444,608			(0.8	)%		—
Interest-bearing transaction accounts		254,092		11.9	%		0.16	%		142,575		11.4	%		0.18	%		111,517			0.6	%		(0.02	)%
Money market and savings deposits		681,852		32.1	%		0.24	%		363,603		29.0	%		0.25	%		318,249			3.0	%		(0.01	)%
Certificates of deposit		61,875		2.9	%		0.32	%		61,013		4.9	%		0.37	%		862			(2.0	)%		(0.05	)%
Total deposits		2,104,310		98.9	%		0.11	%		1,229,074		98.1	%		0.11	%		875,236			0.8	%		0.00	%
Securities sold under agreements to repurchase		12,896		0.6	%		0.22	%		13,870		1.1	%		0.26	%		(974	)		(0.5	)%		(0.04	)%
Subordinated debentures		9,624		0.5	%		4.47	%		9,527		0.8	%		4.47	%		97			(0.3	)%		0.00	%
Total borrowings		22,520		1.1	%		2.06	%		23,397		1.9	%		2.00	%		(877	)		(0.8	)%		0.06	%
Total funding sources	$	2,126,830		100.0	%		0.13	%	$	1,252,471		100.0	%		0.15	%	$	874,359			0.0	%		(0.02	)%

Page 52 of 72

Volume and Rate Variance Analysis of Net Interest Income

The following table presents the dollar amount of changes in interest income and interest expense due to changes in average balances of interest-earning assets and interest bearing liabilities and changes in interest rates. For each category of interest-earning assets and interest bearing liabilities, information is provided on changes attributable to: (i) changes in volume (i.e. changes in average balance multiplied by prior period rate) and (ii) changes in rate (i.e. changes in rate multiplied by prior period average balance). For purposes of this table, changes attributable to both rate and volume which cannot be segregated have been allocated proportionately based on the absolute dollar amounts of the changes due to volume and rate (dollars in thousands):

	Three Months Ended September 30, 2015 vs. 2014
	Increase (Decrease) Due To
	Volume		Rate			Total
Interest Income
Loans	$	9,768	$	(480	)	$	9,288
Deposits in other financial institutions		45		—			45
Investment securities		781		(246	)		535
Total interest income		10,594		(726	)		9,868
Interest Expense
Interest-bearing transaction accounts		58		(23	)		35
Money market and savings deposits		220		(18	)		202
Certificates of deposit		2		(7	)		(5	)
Total deposits		280		(48	)		232
Securities sold under agreements to repurchase		—		1			1
Subordinated debentures, net		1		—			1
Total borrowings		1		1			2
Total interest expense		281		(47	)		234
Net Interest Income	$	10,313	$	(679	)	$	9,634

	Nine Months Ended September 30, 2015 vs. 2014
	Increase (Decrease) Due To
	Volume		Rate			Total
Interest Income
Loans	$	28,453	$	(2,905	)	$	25,548
Deposits in other financial institutions		12		64			76
Investment securities		2,329		(531	)		1,798
Total interest income		30,794		(3,372	)		27,422
Interest Expense
Interest-bearing transaction accounts		145		(36	)		109
Money market and savings deposits		587		(50	)		537
Certificates of deposit		3		(22	)		(19	)
Total deposits		735		(108	)		627
Securities sold under agreements to repurchase		(2		(4	)		(6	)
Subordinated debentures, net		3		—			3
Total borrowings		1		(4	)		(3	)
Total interest expense		736		(112	)		624
Net Interest Income	$	30,058	$	(3,260	)	$	26,798

Page 53 of 72

Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014

The net interest margin increased 9 basis points to 3.79% for the three months ended September 30, 2015 compared to 3.70% for the three months ended September 30, 2014. The existing low interest rate environment continues to contribute to the loan yield compression, as new loans have been originated at lower interest rates than those loans that have been paid off in 2014 and 2015. While the Company has experienced compression in the yields on its loan portfolio, particularly the commercial real estate portfolio, growth in average loans and a shift to more loans in the mix of earning assets, has helped support the net interest margin. The Company’s net interest income was positively impacted in both the third quarter of 2015 and the third quarter of 2014 by the recognition of fair value discount earned on early payoffs of acquired loans. In the third quarter of 2015 the Company recorded $560,000 in discount earned on early loan payoffs of acquired loans and other associated payoff benefits aggregating to $321,000, with a positive impact on the net interest margin of 15 basis points. In the third quarter of 2014 the Company recorded $403,000 in discount earned on early loan payoffs of acquired loans, with a positive impact on the net interest margin of 12 basis points.

Nine Months Ended September 30, 2015 Compared to Nine Months Ended September 30, 2014

The net interest margin increased 7 basis points to 3.87% for the nine months ended September 30, 2015 compared to 3.80% for the nine months ended September 30, 2014. The existing low interest rate environment continues to contribute to the loan yield compression, as new loans have been originated at lower interest rates than those loans that have been paid off in 2014. While the Company has experienced compression in the yields on its loan portfolio, growth in average loans has helped support the net interest margin due to changes in the mix of earnings assets. The Company’s net interest income was positively impacted in both the nine months ended September 30, 2015 and 2014 by the recognition of fair value discount earned on early payoffs of acquired loans. In the first nine months of 2015 the Company recorded $1.1 million in discount earned on early loan payoffs of acquired loans and other associated payoff benefits aggregating to $522,000, with a positive impact on the net interest margin of 11 basis points. In the first nine months of 2014 the Company recorded $1.4 million in discount earned on early loan payoffs of acquired loans, with a positive impact on the net interest margin of 15 basis points.

Provision for Loan Losses

The Company maintains an allowance for loan loss (“Allowance”) to provide for probable losses in the loan portfolio. Additions to the Allowance are made by charges to operating expense in the form of a provision for loan losses. All loans that are judged to be uncollectible will be charged against the Allowance, while any recoveries will be credited to the Allowance.

Provision for loan losses for the three months ended September 30, 2015 was $705,000 compared to $35,000 for the three months ended September 30, 2014. The Company had $89 million of net organic loan growth for the quarter ended September 30, 2015, compared to $15.5 million for the same quarter a year ago. Net recoveries for the three months ended September 30, 2015 were $136,000, compared to net recoveries of $29,000 in 2014. Provision for loan losses for the nine months ended September 30, 2015 was $3 million, compared to $518,000 for the nine months ended September 30, 2014. The Company had $246 million of net organic loan growth for the nine months ended September 30, 2015, compared to $87.5 million for the nine months ended September 30, 2014. Net charge-offs for the nine months ended September 30, 2015 were $476,000, compared to net recoveries of $227,000 in 2014. See further discussion in Balance Sheet Analysis, Allowance for Loan Loss.

Page 54 of 72

Non-interest Income

	Three Months Ended September 30,				Increase (Decrease)					Nine Months Ended September 30,				Increase (Decrease)
	2015		2014		$		%			2015		2014		$		%
Gain on sale of SBA loans, net		640		331		309		93	%		1,278		936		342		37	%
Deposit account service charge income		1,159		631		528		84	%		3,453		1,891		1,562		83	%
Other non-interest income		1,189		1,042		147		14	%		3,960		2,750		1,210		44	%
Total Non-Interest Income	$	2,988	$	2,004	$	984		49	%	$	8,691	$	5,577	$	3,114		56	%

Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014

Non-interest income increased $984,000 or 49% to $3 million for the three months ended September 30, 2015 compared to $2 million for the three months ended September 30, 2014. This change was mainly due to a $528,000 increase in the deposit account service charge income as a result of the merger and a $309,000 increase in gain on sale of SBA loans. Other non-interest income increased by $147,000 mainly due to a $177,000 increase in BOLI income and $277,000 increase in FHLB dividend income offset by a $215,000 decrease in loan-related income. The increase in BOLI income is a result of the 1^st Enterprise merger and additional purchases made in the first quarter of 2015. In light of the consistent increase in the quarterly dividend rate from the FHLB, the Company accrues for the dividend as it is earned beginning in the third quarter of 2015. Previously the Company recorded the dividend as income in the period received; as a result, the accrual of $200,000 for the dividend earned in the third quarter of 2015, which will be received early in the fourth quarter of 2015, overlaps with the second quarter dividend payment of $200,000 received and recorded as income early in the third quarter of 2015.

Nine Months Ended September 30, 2015 Compared to Nine Months Ended September 30, 2014

Non-interest income increased $3 million or 56% to $9 million for the nine months ended September 30, 2015 compared to $6 million for the nine months ended September 30, 2014. This change was mainly due to a $2 million increase in the deposit account service charge income as a result of the merger and a $342,000 increase in gain on sale of SBA loans. Other non-interest increased by $1 million mainly due to a $484,000 increase in BOLI income, a $760,000 increase in FHLB dividend income, a $150,000 increase in interchange fees and a $227,000 increase in letter of credit fees, offset by a $530,000 decrease in loan-related income. The increase in BOLI income is a result of the 1^st Enterprise merger and additional purchases made in the first quarter of 2015. In light of the consistent increase in the quarterly dividend rate from the FHLB, the Company accrues for the dividend as it is earned beginning in the third quarter of 2015. Previously the Company recorded the dividend as income in the period received; as a result, the accrual of $200,000 for the dividend earned in the third quarter of 2015, which will be received early in the fourth quarter of 2015, overlaps with the second quarter of dividend payment of $200,000 received and recorded as income early in the third quarter of 2015. Further, the Company received a $296,000 special dividend from the FHLB in the second quarter of 2015.

Page 55 of 72

Non-interest Expense

The following table sets forth certain information with respect to the Company’s non-interest expense for the periods indicated (dollars in thousands):

	Three Months Ended September 30,				Increase (Decrease)						Nine Months Ended September 30,				Increase (Decrease)
	2015		2014		$			%			2015		2014		$			%
Salaries and employee benefits	$	8,934	$	5,621	$	3,313			59	%	$	26,045	$	16,554	$	9,491			57	%
Stock based compensation expense		810		445		365			82	%		2,130		1,332		798			60	%
Occupancy		1,465		999		466			47	%		4,300		2,970		1,330			45	%
Data processing		596		472		124			26	%		1,872		1,423		449			32	%
Legal and professional		412		456		(44	)		(10	)%		1,914		1,390		524			38	%
FDIC deposit assessment		370		195		175			90	%		1,054		596		458			77	%
Merger expenses		146		631		(485	)		(77	)%		498		1,128		(630	)		(56	)%
OREO valuation write-downs and expenses		153		8		145			1813	%		179		14		165			1179	%
Office services expense		383		219		164			75	%		1,204		721		483			67	%
Core deposit intangible amortization		419		65		354			544	%		1,262		203		1,059			522	%
Other operating expenses		1,379		920		813			83	%		4,434		2,947		1,487			50	%
Total Non-Interest Expense	$	15,067	$	10,031	$	5,036			50	%	$	44,892	$	29,278	$	15,614			53	%

Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014

Non-interest expense increased $5 million or 50% to $15 million for the three months ended September 30, 2015 compared to $10 million for the three months ended September 30, 2014. The overall increase between the quarters was primarily the result of combined operations after the merger in November 2014, which accounted for the increases in many categories of expenses, including $358,000 for three months of core deposit intangible amortization related to the 1^st Enterprise merger. Additionally, the Company recorded a charge of $133,000 for an OREO valuation write-down in the third quarter of 2015. These increases were offset by a $485,000 decrease in merger expenses, as the three months ended September 30, 2014 included activities related to the 1st Enterprise merger. The Company had 266 active full-time equivalent employees at September 30, 2015 compared to 178 at September 30, 2014.

Nine Months Ended September 30, 2015 Compared to Nine Months Ended September 30, 2014

Non-interest expense increased $16 million or 53% to $45 million for the nine months ended September 30, 2015 compared to $29.3 million for the nine months ended September 30, 2014. The overall increase between the quarters was primarily the result of combined operations after the merger in November 2014, which accounted for the increases in many categories of expenses, including $1 million for nine months of core deposit intangible amortization related to the 1^st Enterprise merger. Additionally, the Company recorded a charge of $133,000 for an OREO valuation write-down in the third quarter of 2015. These increases were offset by a $630,000 decrease in merger expenses, as the nine months ended September 30, 2014 included activities related to the 1st Enterprise merger. The Company had 266 active full-time equivalent employees at September 30, 2015 compared to 178 at September 30, 2014.

Page 56 of 72

Income Taxes

The effective tax rate for the three months ended September 30, 2015 was 34.9% compared to 45.8% for the three months ended September 30, 2014. The effective tax rate for the nine months ended September 30, 2015 was 37.8% compared to 42.9% for the nine months ended September 30, 2014. Merger expenses of $145,000 and $498,000 for the three and nine months ended September 30, 2015 were tax-deductible compared to $630,000 and $1,127,000 in merger related expenses that were non-deductible for the three and nine months ended September 30, 2014. The Company’s effective tax rate during the three and nine months ended September 30, 2015 is impacted by the increase in cash surrender value of bank owned life insurance policies which is excluded from taxable income and deductions from disqualifying disposition of incentive stock options. In addition, the Company has invested in Qualified Affordable Housing Projects “LIHTC” that generate tax credits and benefits for the Company. The Company operates in the Federal and California jurisdictions and the blended statutory tax rate for Federal and California income taxes is 42.05%. For the three months ended September 30, 2015, the Company also recognized a combined one-time benefit of $465,000 primarily relating to the filing of the final 1^st Enterprise tax returns and the CU Bancorp tax return for the year ended December 31, 2014. The Company’s effective tax rate without the discrete benefit is 39% year to date.

Page 57 of 72

FINANCIAL CONDITION

Balance Sheet Analysis

Total assets increased $389 million from December 31, 2014 to $2.6 billion at September 30, 2015 with an increase of $179 million in cash and cash equivalents and an increase of $147 million in loans, mainly driven by a $312 million increase in total deposits during the period. The increase in loans from the prior year was due to strong organic loan growth. Net organic loan growth during the period was $246 million, partially offset by $99 million in pay downs and pay offs in the acquired loan portfolios. Loan growth during the period was concentrated primarily in Commercial and Industrial loans of $28 million, Owner-Occupied Nonresidential Property loans of $37 million and Other Nonresidential Property loans of $34 million.

Funding the asset growth for the Company for the first nine months of 2015 was the growth in deposits of $312 million, increase in securities sold under agreements to repurchase of $7 million and earnings of $15 million. Further, the deposit growth of $312 million is the result of a $216 million increase in non-interest bearing demand deposits, a $51 million increase in interest bearing transaction accounts and a $48 million increase in money market and savings deposits, offset by a decrease of $3 million in certificates of deposit. Non-interest bearing deposits represented 55% and 53% of total deposits at September 30, 2015 and December 31, 2014 respectively.

Lending

The following table presents the composition of the loan portfolio at the dates indicated (dollars in thousands):

	September 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Commercial and Industrial Loans:	$	556,462		32	%	$	528,517		32	%
Loans Secured by Real Estate:
Owner-Occupied Nonresidential Properties		376,579		21	%		339,309		21	%
Other Nonresidential Properties		515,402		29	%		481,517		30	%
Construction, Land Development and Other Land		94,353		5	%		72,223		4	%
1-4 Family Residential Properties		125,635		7	%		121,985		8	%
Multifamily Residential Properties		65,275		4	%		52,813		3	%
Total Loans Secured by Real Estate		1,177,244		66	%		1,067,847		66	%
Other Loans:		37,641		2	%		28,359		2	%
Total Loans	$	1,771,347		100	%	$	1,624,723		100	%

Page 58 of 72

The following table is a breakout of the Company’s gross loans stratified by the industry concentration of the borrower by their respective NAICS code at the dates indicated (dollars in thousands):

	September 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Real Estate	$	811,868		46	%	$	744,663		46	%
Manufacturing		167,162		9	%		161,233		10	%
Wholesale		129,952		7	%		124,336		8	%
Construction		154,085		9	%		113,763		7	%
Finance		113,956		6	%		96,074		6	%
Hotel/Lodging		101,239		6	%		88,269		5	%
Professional Services		53,147		3	%		64,215		4	%
Other Services		47,359		3	%		45,781		3	%
Healthcare		47,041		3	%		43,917		3	%
Retail		36,777		2	%		35,503		2	%
Administrative Services		26,164		1	%		28,016		2	%
Restaurant/Food Service		31,884		2	%		24,525		2	%
Transportation		21,596		1	%		18,158		1	%
Information		8,756		1	%		15,457		1	%
Education		9,192		1	%		10,253		1	%
Entertainment		5,610		—	%		8,284		1	%
Other		5,569		—	%		2,276		0	%
Total Loans	$	1,771,347		100	%	$	1,624,723		100	%

The Company’s loan origination and lending activities continue to be focused primarily on direct contact with its borrowers through the Company’s relationship managers and/or executive officers. Total loans were $1.8 billion at September 30, 2015, an increase of $147 million or 9% from $1.6 billion at December 31, 2014. The Company had approximately $246 million of net organic loan growth which was partially offset by approximately $99 million in loan pay downs and pay offs from the acquired loan portfolios. The increase in total loans from the end of the prior year included a $28 million increase in the commercial and industrial loan portfolio, $37 million increase in the owner-occupied nonresidential properties portfolio, a $34 million increase in the other nonresidential real estate properties portfolio, a $22 million increase in the construction, land development and other land properties portfolio, and a $12 million increase in the other loans portfolio.

In the owner-occupied nonresidential properties portfolio, there were three new loans with balances above $5 million and twenty three new loans with balances between $1 million and $5 million that were originated during the nine months ending September 30, 2015. The largest loan was a $12 million loan which was originated to refinance and pay off two existing loans with a combined exposure of $10 million that were originally made for the purchase and improvements of a commercial property located in the Company’s footprint. Additional funds were taken as cash out to increase the customer’s liquidity. This loan had a loan-to-value ratio of 71% at origination.

In the other nonresidential real estate properties portfolio, there were five new loans with balances above $5 million and seventeen new loans with balances between $1 million and $5 million that were originated during the nine months ending September 30, 2015. The largest loan was a $23 million loan originated to provide bridge financing on a multi-tenant retail center located in the Company’s footprint. This loan had a loan-to-value ratio of 70% at origination.

At September 30, 2015, the composition mix in the loan portfolio remains substantially the same in all categories compared to the end of the prior year. Commercial and industrial loans and owner-occupied real estate loans combined were $933 million or 53% of total loans at September 30, 2015, compared to $868 million or 53% at December 31, 2014.

We continue to establish new relationships and expand our current business, as evidenced by our increased commercial line of credit commitments, which are up $93 million or 12% from $778 million at December 31, 2014, as a result of strong organic growth, in addition to the 1^st Enterprise merger. Due to the dynamic nature of commercial and industrial lending, actual credit utilization may experience ebbs and flows. The Company’s commercial and industrial line of credit utilization was approximately 47% as of September 30, 2015, compared to 45% as of December 31, 2014.

Page 59 of 72

The Company had 53 commercial banking relationship managers and 9 commercial real estate relationship managers at September 30, 2015. This compares to 51 commercial banking relationship managers and 10 commercial real estate relationship managers at December 31, 2014. The Company’s credit approval process includes an examination of the collateral, cash flow, and debt service coverage of the loan, as well as the financial condition and credit references of the borrower. The Company’s senior management is actively involved in its lending activities and collateral valuation and review process and the Company obtains independent third party appraisals of real property securing commercial real estate loans, as required by applicable federal and state laws and regulations. There is also a problem loan committee comprised of senior management that reviews criticized loans.

The Company believes that it carefully manages credit risk in its loan portfolio and uses a variety of policy guidelines and analytical tools to achieve its asset quality objectives. There is also a director loan committee that reviews loan portfolio management.

Allowance for Loan Loss

The Allowance increased $2 million, to $15 million at September 30, 2015 from $13 million at December 31, 2014 due to a provision for loan losses of $2.8 million and net charge-offs of $476,000. The allowance for loan loss as a percentage of total loans was 0.84% at September 30, 2015 and 0.78% at December 31, 2014. The Allowance as a percentage of loans (excluding loan balances and the related Allowance on loans acquired through acquisition) was 1.30% and 1.39% at September 30, 2015 and December 31, 2014, respectively. The decrease in the allowance ratio related to organic loans was directly attributable to gradual improvements in the economic conditions within the Company’s markets, as well as a continued low level of non-performing assets at September 30, 2015.

The Company’s management considered the following factors in evaluating the allowance for loan loss at September 30, 2015:

• During the nine months ended September 30, 2015 there were net loan charge-offs of $476,000

• There were $933,000 in loan charge-offs during the nine months ended September 30, 2015 primarily due to one large loan

• There were eighteen non-accrual loans totaling $4 million

• The overall growth and composition of the loan portfolio

• Changes to the overall economic conditions within the markets in which the Company makes loans

• Concentrations within the loan portfolio, as well as risk conditions within its commercial and industrial loan portfolio

• The remaining fair value adjustments on loans acquired through acquisition with special attention to the fair value adjustments associated with the purchased credit impaired loans

Management has considered various material elements of potential risk within the loan portfolio, including classified credits, pools of loans with similar characteristics, economic factors, trends in the loan portfolio and modification and changes in the Company’s lending policies, procedures and underwriting criteria. In addition, management recognized the potential for unforeseen events to occur when evaluating the qualitative factors in all categories of its analysis.

The Company analyzes historical net charge-offs in various loan portfolio segments when evaluating the allowance. For loan segments without previous loss experience, the analysis is adjusted to reflect regulatory peer group loss experience in those loan segments. The loss analysis is then adjusted for qualitative factors that may have an impact on loss experience in the particular loan segments.

The Allowance and the reserve for unfunded loan commitments are significant estimates that can and do change based on management’s process in analyzing the loan portfolio and on management’s assumptions about specific borrowers and applicable economic and environmental conditions, among other factors. In considering all of the above factors, management believes that the Allowance at September 30, 2015 is adequate. Although the Company maintains its Allowance at a level which it considers adequate to provide for probable loan losses, there can be no assurance that such losses will not exceed the estimated amounts, thereby adversely affecting future results of operations.

Loans acquired through acquisition are recorded at estimated fair value on their purchase date without a carryover of the related Allowance. Loans acquired with deteriorated credit quality are loans that have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect principal and interest payments

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according to contractual terms. These loans are accounted for under ASC Subtopic 310-30 Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality. Evidence of credit quality deterioration as of the purchase date may include factors such as past due and non-accrual status. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the credit loss or non accretable yield. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses.

The following table is a summary of the activity for the Allowance as of the dates and for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Allowance for loan loss at beginning of period	$	14,124		$	11,284		$	12,610		$	10,603
Provision for loan losses		705			35			2,831			518
Net (charge-offs) recoveries:
Charge-offs		(42	)		(8	)		(933	)		(165	)
Recoveries		178			37			457			392
Net (charge-offs) recoveries		136			29			(476	)		227
Allowance for loan loss at end of period	$	14,965		$	11,348		$	14,965		$	11,348
Net (charge-offs) recoveries to average loans		0.01	%		0.00	%		(0.03	)%		(0.02	)%

The following is a summary of our asset quality data and key ratios at the dates indicated (dollars in thousands):

	September 30, 2015			December 31, 2014
Loans originated by the Bank on non-accrual	$	1,516		$	2,131
Loans acquired through acquisition that are on non-accrual		2,788			1,778
Total non-accrual loans		4,304			3,909
Other Real Estate Owned		1,292			850
Total non-performing assets	$	5,596		$	4,759
Net charge-offs year to date	$	476		$	232
Non-accrual loans to total loans		0.24	%		0.24	%
Total non-performing assets to total assets		0.21	%		0.21	%
Allowance for loan losses to total loans		0.84	%		0.78	%
Allowance for loan losses to total loans accounted at historical cost, which excludes purchased loans acquired by acquisition		1.30	%		1.39	%
Allowance for loan losses to non-accrual loans accounted at historical cost, which excludes non-accrual purchased loans acquired by acquisition and related allowance		987.0	%		591.7	%
Allowance for loan losses to total non-accrual loans		347.7	%		322.6	%

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Deposits

The following table presents the balance of each major category of deposits at the dates indicated (dollars in thousands):

	September 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Non-interest bearing demand deposits	$	1,248,348		55	%	$	1,032,634		53	%
Interest bearing transaction accounts		257,853		11	%		206,544		11	%
Money market and savings deposits		691,292		31	%		643,675		33	%
Certificates of deposit		62,320,		3	%		64,840		3	%
Total deposits	$	2,259,813		100	%	$	1,947,693		100	%

Total deposits increased $312 million to $2.3 billion at September 30, 2015, primarily due to a $216 million increase in non-interest bearing demand deposits, a $51 million increase in interest bearing transaction accounts and a $48 million increase in money market and savings deposits, offset by a decrease of $3 million in certificates of deposit. The increases in these deposits are primarily related to strong organic deposit growth in the first three quarters of 2015 coupled with the result of existing customers experiencing a variety of cash generating events in the third quarter of 2015. Non-interest bearing deposits represented 55% and 53% of total deposits at September 30, 2015 and December 31, 2014 respectively.

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LIQUIDITY

The following table provides a summary of the Bank’s primary and secondary liquidity levels at the dates indicated (dollars in thousands):

	September 30, 2015			December 31, 2014
	Amount			Amount
Primary Liquidity- On Balance Sheet:
Cash and due from banks	$	41,928		$	33,996
Interest-earning deposits in other financial institutions		269,298			98,590
Investment securities available-for-sale		256,085			226,962
Less: pledged cash and due from banks		—			(1,500	)
Less: pledged investment securities		(202,949	)		(148,805	)
Total primary liquidity	$	364,362		$	209,243
Ratio of primary liquidity to total deposits		16.1	%		10.7	%
Additional Liquidity Not Included In Primary Liquidity :
Certificates of deposit in other financial institutions	$	58,674		$	76,433
Less: Certificate of deposits pledged		(2,731	)		(2,731	)
Total additional liquidity	$	55,943		$	73,702
Secondary Liquidity- Off-Balance Sheet:
Available Borrowing Capacity:
Total secured borrowing capacity with FHLB	$	526.327		$	484,669
Fed Funds borrowing lines		67,000			71,000
Secured credit line with the FRBSF		19,495			17,528
Total secondary liquidity	$	612,822		$	446,215

As of September 30, 2015, the Company’s primary overnight source of liquidity consisted of the balances reflected in the table above. The Company’s primary liquidity consisted of cash and due from banks and interest-earning deposits at financial institutions. The amount of funds maintained directly with the Federal Reserve included in interest-earning deposits in other financial institutions was $218 million and $60 million, at September 30, 2015 and December 31, 2014, respectively. The next source of liquidity is the Company’s collateralized borrowings and unsecured borrowing facilities. In addition, the Company has $59 million of Certificates of deposits in other financial institutions where the average maturity is approximately 6 months that could be utilized over time to supplement the liquidity needs of the Company.

The Company’s primary long term source of funding has come from the liability side of the balance sheet and has historically been through the growth in non-interest bearing and interest bearing core deposits from new and existing customers. Additional sources of funds from the Company’s asset side of the balance sheet have included Federal Funds sold, interest-earning deposits with other financial institutions, balances maintained with the Federal Reserve Bank, short term certificates of deposit in other financial institutions and payments of principal and interest on loans and investment securities. While maturities and scheduled principal amortization on loans are a reasonably predictable source of funds, deposit flows and loan prepayments are greatly influenced by the level of interest rates, economic conditions and competition.

As an additional source of liquidity, the Company maintains credit facilities, “Fed Funds Borrowing Lines,” of $67 million with its primary correspondent banks for the purchase of overnight Federal funds. The lines are subject to availability of funds and have restrictions as to the number of days and length used during a month, $5 million of these credit facilities require the pledging of investment securities collateral.

The Company has established a secured credit facility with the FHLB of San Francisco which allows the Bank to borrow up to 25% of the Bank’s total assets, which equates to a credit line of approximately $618 million at September 30, 2015. The Company currently has no outstanding borrowings with the FHLB. As of September 30, 2015, the Company had $795 million of loan collateral pledged with the FHLB. This level of loan collateral would provide the Company with $526 million in borrowing capacity. Any amount of borrowings in excess of the $526 million would require the Company to pledge additional collateral. In addition, the Company must maintain a certain investment in the common stock of the FHLB.

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The Company’s investment in the common stock of the FHLB is $8 million at September 30, 2015. This level of capital would allow the Company to borrow up to $297 million. Any advances from the FHLB in excess of the $297 million would require additional purchases of FHLB common stock. The Company has $20 million in securities pledged with the FHLB at September 30, 2015.

The Company maintains a secured credit facility with the Federal Reserve Bank of San Francisco (“FRBSF”) which is collateralized by investment securities pledged with the FRB. At September 30, 2015, the Company’s available borrowing capacity was $19 million.

The Company maintains investments in short term certificates of deposit with other financial institutions, with an average remaining maturity of approximately 6 months, with various balances maturing monthly. The Company had balances of $59 million and $76 million at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015, $3 million of the Company’s certificates of deposit with other financial institutions were pledged as collateral as credit support for the interest rate swap contracts and are not available as a source of liquidity.

At September 30, 2015 and December 31, 2014, $0 million and $1.5 million, respectively, of the Company’s due from bank balances was pledged as collateral as credit support for the interest rate swap contracts and is not available as a source of liquidity.

The Company’s commitments to extend credit (off-balance sheet liquidity risk) are agreements to lend funds to customers as long as there are no violations as established in the loan agreement. Many of the commitments are expected to expire without being drawn upon, and as such, the total commitment amounts do not necessarily represent future cash requirements. Financial instruments with off-balance sheet risk for the Company include both undisbursed loan commitments, as well as undisbursed letters of credit. The Company’s exposure to extend credit was $761 million and $720 million at September 30, 2015 and December 31, 2014, respectively.

The holding company liquidity on a stand-alone basis was $6 million and $5 million, in cash on deposit at the Bank, at September 30, 2015 and December 31, 2014, respectively. Management believes this amount of cash is currently sufficient to fund the holding company’s cash flow needs over at least the next twelve to twenty four months.

DIVIDENDS

To date, the Company has not paid any cash dividends on its common stock. Payment of stock or cash dividends in the future will depend upon earnings, liquidity, financial condition and other factors deemed relevant by our Board of Directors. Notification to the FRB is required prior to declaring and paying a dividend to shareholders that exceeds earnings for the period for which the dividend is being paid. This notification requirement is included in regulatory guidance regarding safety and soundness surrounding capital and includes other non-financial measures such as asset quality, financial condition, capital adequacy, liquidity, future earnings projections, capital planning and credit concentrations. Should the FRB object to dividend payments, the Company would be precluded from declaring and paying dividends, until approval is received or the Company no longer needs to provide notice under applicable guidance.

California law also limits the Company’s ability to pay dividends. A corporation may make a distribution/dividend from retained earnings to the extent that the retained earnings exceed (a) the amount of the distribution plus (b) the amount if any, of dividends in arrears on shares with preferential dividend rights. Alternatively, a corporation may make a distribution/dividend, if, immediately after the distribution, the value of its assets equals or exceeds the sum of (a) its total liabilities plus (b) the liquidation preference of any shares which have a preference upon dissolution over the rights of shareholders receiving the distribution/dividend.

The Bank is subject to certain restrictions on the amount of dividends that may be declared without regulatory approval. Such dividends shall not exceed the lesser of the Bank’s retained earnings or net income for its last three fiscal years (less any distributions to shareholders made during such period). In addition, the Bank may not pay dividends that would result in its capital being reduced below the minimum requirements for capital adequacy purposes.

On November 30, 2014, the Company entered into an Assignment and Assumption Agreement with the Secretary of the Treasury, pursuant to which the Company issued to the U.S. Treasury 16,400 shares of its Non-Cumulative Perpetual Preferred Stock, Series A, having a liquidation preference of $1,000 per share and the Company assumed the obligations of 1^st Enterprise Bank in connection with its issuance of the same number and type of securities to the Treasury (which shares

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were retired in connection therewith). The issuance was pursuant to the Treasury’s SBLF program, a $30 billion fund established under the Small Business Jobs Act of 2010, which encourages lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion. The Series A Preferred Stock is entitled to receive non-cumulative dividends payable quarterly on each January 1, April 1, July 1 and October 1. The current dividend rate is fixed at the current rate of 1% through January 2016. If the Series A Preferred Stock remains outstanding beyond January 2016, the dividend rate will be fixed at 9%. However, the dividend yield through November 30, 2018 approximates 7% as a result of business combination accounting.

As of September 30, 2015, both CU Bancorp “the holding company” and the Bank had positive retained earnings and positive net income that would allow either of them to declare and pay a dividend as of September 30, 2015. However, neither the holding company nor the Bank has plans to declare and pay a cash dividend on the common stock at the current time.

The Company has a program to repurchase a portion of an employee’s outstanding restricted stock upon the vesting of this restricted stock, but only in amounts necessary to cover the minimum employee tax withholding obligations at the option of the restricted stockholder (employee). The Company had this program in place during all of 2014 and through the nine months ending September 30, 2015. This program was designed to provide the Bank’s employees with the financial ability to cover their tax liability obligation associated with the vesting of their restricted stock at the date of vesting. These transactions under the State of California Corporations Code are defined as distributions to shareholders.

REGULATORY MATTERS

Capital Resources

The Company’s objective is to maintain a level of capital that will support sustained asset and loan growth, provide for anticipated credit risks, and ensure that regulatory guidelines and industry standards are met. The Company and the Bank are subject to certain minimum capital adequacy and minimum well capitalized category guidelines adopted by the FRB and the FDIC. These guidelines relate primarily to the Tier 1 leverage ratio, the Common Equity Tier 1 Ratio (“CET1”), the Tier 1 risk-based capital ratio, and the Total risk-based capital ratio.

On October 26, 2015, the Company filed a Form S-3 registration statement for offerings up to $100 million of certain types of securities. If drawn on, proceeds from the offering could be used for general corporate purposes. The registration statement represents capital resources available to the Company once the registration statement is deemed to be effective by the Securities Exchange Commission (SEC) and will be available for three years.

At September 30, 2015, the respective capital ratios of the Company and the Bank exceeded the minimum percentage requirements to be deemed “well-capitalized” under the current capital guidelines. The following tables present the regulatory capital ratios requirements and the actual capitalization levels of the Company and the Bank as of the dates indicated (dollars in thousands):

CU Bancorp

	September 30, 2015			December 31, 2014			Adequately Capitalized			Well Capitalized
	Amount			Amount			(greater than or equal to)
Regulatory Capital Ratios:
Tier 1 leverage ratio		9.78	%		12.92	%		4.0	%		5.00	%
Common Equity Tier 1 ratio		9.51	%		—			4.5	%		6.5	%
Total Tier 1 risk-based capital ratio		10.76	%		10.95	%		6.0	%		8.0	%
Total risk-based capital ratio		11.45	%		11.61	%		8.0	%		10.0	%
Regulatory Capital Data:
Common Equity Tier 1	$	215,498			—
Total Tier 1 capital		243,940		$	218,147
Total risk-based capital		259,466			231,228
Average total assets		2,493,216			1,689,096
Risk-weighted assets		2,266,843			1,992,043

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California United Bank

	September 30, 2015			December 31, 2014			Adequately Capitalized			Well Capitalized
	Amount			Amount			(greater than or equal to)
Regulatory Capital Ratios:
Tier 1 leverage ratio		9.49	%		12.44	%		4.0	%		5.0	%
Common Equity Tier 1 ratio		10.43	%		—			4.5	%		6.5	%
Total Tier 1 risk-based capital ratio		10.43	%		10.55	%		6.0	%		8.0	%
Total risk-based capital ratio		11.11	%		11.20	%		8.0	%		10.0	%
Regulatory Capital Data:
Common Equity Tier 1	$	236,523			—
Tier 1 capital		236,523		$	210,031
Total risk-based capital		252,049			223,112
Average total assets		2,492,987			1,688,308
Risk-weighted assets		2,267,860			1,991,253

The decrease in the Tier 1 leverage ratio at September 30, 2015 from December 31, 2014 is due to the increase in the average total assets for the nine months ended September 30, 2015 compared to the year ended December 31, 2014, as the assets acquired from the 1^st Enterprise merger were outstanding for all nine months in 2015 but only one month for the year ended December 31, 2014.

In July 2013, the federal bank regulatory agencies adopted final regulations which revised their risk-based and leverage capital requirements for banking organizations to meet requirements of Dodd-Frank and to implement international agreements reached by the Basel Committee on Banking Supervision intended to improve both the quality and quantity of banking organizations’ capital (“Basel III”). Dodd-Frank required the Federal Reserve to apply consolidated capital requirements to depository institution holding companies that are no less stringent than those currently applied to depository institutions.

The following are among the new requirements that were phased-in beginning January 1, 2015 under the new capital rules:

• an increase in the minimum Tier 1 capital ratio from 4.00% to 6.00% of risk-weighted assets;

• a new category and a required 4.50% of risk-weighted assets ratio is established for CET1 as a subset of Tier 1 capital limited to common equity;

• a minimum non-risk-based leverage ratio is set at 4.00%;

• changes in the permitted composition of Tier 1 capital to exclude trust preferred securities (however, trust preferred securities issued prior to May 19, 2010 by a bank holding company with less than $15 billion in assets, such as CU Bancorp, continues to be included in Tier 1 capital, subject to a limit of 25% of Tier 1 capital elements; see further discussion below), mortgage servicing rights and certain deferred tax assets and include unrealized gains and losses on available-for-sale debt and equity securities;

• the risk-weights of certain assets for purposes of calculating the risk-based capital ratios are changed for high volatility commercial real estate acquisition, development and construction loans, certain past due non-residential mortgage loans and certain mortgage-backed and other securities exposures;

• an additional “countercyclical capital buffer” is required for larger and more complex institutions; and

• a new additional capital conservation buffer of 2.5% of risk weighted assets over each of the required capital ratios will be phased in from 2016 to 2019 and must be met to avoid limitations on the ability of the Company and the Bank to pay dividends, repurchase shares or pay discretionary bonuses.

Including the capital conservation buffer of 2.5%, the new final capital rule results in the following minimum ratios: (i) a Tier 1 capital ratio of 8.5%, (ii) a common equity Tier 1 capital ratio of 7.0%, and (iii) a total capital ratio of 10.5%. The new capital conservation buffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and would increase each year until fully implemented in January 2019. While the new final capital rule sets higher regulatory capital standards for the Company and the Bank, bank regulators may also continue their past policies of expecting banks to maintain additional capital beyond the new minimum requirements. The implementation of the new capital rules or more

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stringent requirements to maintain higher levels of capital or to maintain higher levels of liquid assets could adversely impact the Company’s net income and return on equity, restrict the ability to pay dividends or executive bonuses and require the raising of additional capital.

Under Dodd Frank, trust preferred securities is excluded from Tier 1 capital, unless such securities were issued prior to May 19, 2010 by a bank holding company with less than $15 billion in assets. CU Bancorp assumed approximately $12.4 million of junior subordinated debt securities issued to various business trust subsidiaries of Premier Commercial Bancorp and funded through the issuance of approximately $12.0 million of floating rate capital trust preferred securities. These junior subordinated debt securities were issued prior to May 19, 2010. Because CU Bancorp has less than $15 billion in assets, the trust preferred securities that CU Bancorp assumed from Premier Commercial Bancorp continues to be included in Tier 1 capital, subject to a limit of 25% of Tier 1 capital elements.

The Company also currently includes in its Tier 1 capital an amount of Non-Cumulative Perpetual Preferred Stock, Series A issued under the SBLF program. The U.S. Department of the Treasury is the sole holder of all outstanding shares of CU Bancorp Preferred Stock. Under the Final Rule, the CU Bancorp Preferred Stock continues to be included in Tier 1 Risk-Based Capital because non-cumulative perpetual preferred stock remained classified as Tier 1 capital following the enactment of Dodd Frank.

Dodd-Frank Wall Street Reform and Consumer Protection Act

For a discussion regarding the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, see the Company’s December 31, 2014 Form 10K, Part I, Item 1 – Business – Supervision and Regulation – Legislation and Regulatory Developments – Dodd-Frank Wall Street Reform and Consumer Protection Act.

Number of Employees

The number of active full-time equivalent employees increased from 250 at December 31, 2014 to 266 at September 30, 2015.

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ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

The Company’s primary market risk is interest rate risk. Interest rate risk is the potential for economic losses due to future interest rate changes. These economic losses can be reflected as a loss of future net interest income and/or a loss of current fair market values. The objective is to measure the effect on net interest income and to adjust the balance sheet to minimize the inherent risk while at the same time maximizing income. Management realizes certain risks are inherent and that the goal is to identify and minimize the risks. To mitigate interest rate risk, the structure of the Company’s balance sheet is managed with the objective of correlating the movements of interest rates on loans and investments with those of deposits and borrowings.

The Company’s exposure to interest rate risk is reviewed by the Company’s management Asset/Liability Committee formally on a quarterly basis and on an ongoing basis. The main tool used to monitor interest rate risk is a dynamic simulation model that quantifies the estimated exposure of net interest income to sustained interest rate changes. The simulation model estimates the impact of changing interest rates on the interest income from all interest-earning assets and the interest expense paid on all interest bearing liabilities reflected on the Company’s balance sheet. This sensitivity analysis is compared to the Company’s policy limits, which specify a maximum tolerance level for net interest income exposure over a one-year horizon assuming no balance sheet growth, given a 100 and 400 basis point upward and 200 basis point downward shift in interest rates.

An additional tool used by management to monitor interest rate risk includes the standard GAP report, which measures the estimated difference between the amount of interest-sensitive assets and interest-sensitive liabilities anticipated to mature or reprice during future periods, based on certain assumptions. In general, the GAP report presents the carrying amounts of these assets and liabilities in a particular period based on either the date that they first reprice, for variable rate products, or the maturity date, for fixed rate products.

At September 30, 2015, the Company had nineteen pay-fixed, receive-variable interest rate contracts that were designed to convert fixed rate loans into variable rate loans. Seventeen of these swap contacts are designated as fair value hedges. For additional information on these interest rate contracts, see Note 10 – Derivative Financial Instruments located in Part I, Item 1. – Notes to the Consolidated Financial Statements.

The Company has no market risk sensitive instruments held for trading purposes. Management believes that the Company’s market risk is reasonable at this time.

The following depicts the Company’s net interest income sensitivity analysis as of September 30, 2015 (dollars in thousands):

Simulated Rate Changes	Estimated Net Interest Income Sensitivity
+ 400 basis points		38.0	%	$	29,807
+ 100 basis points		9.2	%	$	7,197
- 200 basis points (1)		(4.5	)%	$	3,524

The Company is currently asset sensitive. The estimated sensitivity does not necessarily represent our forecast and the results may not be indicative of actual changes to our net interest income. These estimates are based upon a number of assumptions including: the nature and timing of interest rate levels including yield curve shape, prepayments on loans and securities, pricing strategies on loans and deposits and replacement of asset and liability cash flows. The duration of the Company’s investment securities portfolio at September 30, 2015 is approximately 2.2 years. While the assumptions used are based on current economic and local market conditions, there is no assurance as to the predictive nature of these conditions including how customer preferences or competitor influences might change.

Variable rate loans make up 74% of the loan portfolio. However, the Company has floors on some of its loans. At September 30, 2015, 41% of variable rate loans are at their floor and thus an increase in the underlying index may not necessarily result in an increase in the coupon until the loan index plus margin exceeds that floor. However, 58% of the variable rate loans are tied to the Prime index with $507 million subject to repricing within 30 days of a 25 basis point increase in Prime rate.

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The Company’s static GAP as of September 30, 2015, is not materially different from that reported at December 31, 2014 and is thus not included in this 10Q. See the Company’s Static Gap reports under “Item7A-Quantitative and Qualitative Disclosures about Market Risk” in the Company’s 2014 Annual Report on Form 10-K.

(1) The simulated rate change under the -200 basis points reflected above actually reflects only a maximum negative 25 basis points or less decline in actual rates based on the current targeted Fed Funds target rate by the government of 0% to 0.25%. The -200 simulation model reflects repricing of liabilities of less than 0.25% due to the Company paying significantly less than 25 basis points on its deposit accounts, and higher downward repricing of the Company’s interest-earning assets in the -200 simulation model.

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ITEM 4. Controls and Procedures

a) Evaluation of disclosure controls and procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of our fiscal year. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective in ensuring that information required to be disclosed by us in reports that we file or submit under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer to allow timely decisions regarding required disclosure.

b) Changes in internal controls over financial reporting

There have been no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) identified during the fiscal quarter that ended September 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. Legal Proceedings

None.

ITEM 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in the Company’s 2014 Annual Report on Form 10-K.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

ITEM 3. Defaults upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information

(a) None.

(b) None.

ITEM 6. Exhibits

(a) Index to Exhibits

Exhibit Number	Description
3.2⌂	Bylaws of CU Bancorp
10.1⌂	California United Bank Restated and Amended Audit Committee Charter
10.2⌂	California United Bank Restated and Amended Compensation, Nomination & Corporate Governance Committee Charter
31.1⌂	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2⌂	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1⌂	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS⌂	XBRL Instance Document
101.SCH⌂	XBRL Taxonomy Extension Schema Document
101.CAL⌂	XBRL Taxonomy Calculation Linkbase Document
101.LAB⌂	XBRL Taxonomy Label Linkbase Document
101 DEF⌂	XBRL Taxonomy Extension Definition Linkbase Document
101.PRE⌂	XBRL Taxonomy Presentation Linkbase Document

⌂ Attached hereto

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SIGNATURES

Pursuant to the requirements of the Security Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CU BANCORP

Date:	November 6, 2015	/s/    DAVID I. RAINER
		David I. Rainer
		Chief Executive Officer
Date:	November 6, 2015	/s/    KAREN A. SCHOENBAUM
		Karen A. Schoenbaum
		Executive Vice President and Chief Financial Officer

Page 72 of 72

EX-3.2

Exhibit 3.2

BYLAWS

OF

CU BANCORP

ARTICLE I

OFFICES

Section 1. PRINCIPAL OFFICES. The board of directors shall fix the location of the principal executive office of the corporation at any place within or outside the State of California. If the principal executive office is located outside this state, and the corporation has one or more business offices in this state, the board of directors shall likewise fix and designate a principal business office in the State of California.

Section 2. OTHER OFFICES. The board of directors may at any time establish branch or subordinate offices at any place or places where the corporation is qualified to do business.

ARTICLE II

MEETINGS OF SHAREHOLDERS

Section 1. PLACE OF MEETINGS. Meetings of shareholders shall be held at any place within or without the State of California designated by the board of directors. In the absence of any such designation, shareholders’ meetings shall be held at the principal executive office of the corporation.

Section 2. ANNUAL MEETINGS. The annual meeting of shareholders shall be held each year on a date and at a time designated by the board of directors. The date so designated shall be within five (5) months after the end of the fiscal year of the corporation, and within fifteen (15) months after the last annual meeting. At each annual meeting directors shall be elected, and any other proper business may be transacted.

Section 3. SPECIAL MEETINGS. A special meeting of the shareholders, for any purpose or purposes whatsoever, may be called at any time by the board of directors, or by the chairman of the board of directors, or by the president, or by one or more shareholders holding shares in the aggregate entitled to cast not less than 10% of the votes at any such meeting.

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If a special meeting is called by any person or persons other than the board of directors, the request shall be in writing, specifying the time of such meeting and the general nature of the business proposed to be transacted, and shall be delivered or sent by registered mail or by telegraphic or other facsimile transmission to the chairman of the board, the president, any vice president or the secretary of the corporation. The officer receiving such request forthwith shall cause notice to be given to the shareholders entitled to vote, in accordance with the provisions of Sections 4 and 5 of this Article II, that a meeting will be held at the time requested by the person or persons calling the meeting, not less than thirty-five (35) nor more than sixty (60) days after the receipt of the request. If the notice is not given within twenty (20) days after receipt of the request, the person or persons requesting the meeting may give the notice. Nothing contained in this paragraph of this Section 3 shall be construed as limiting, fixing or affecting the time when a meeting of shareholders called by action of the board of directors may be held.

Section 4. NOTICE OF SHAREHOLDERS’ MEETINGS. All notices of meetings of shareholders shall be sent or otherwise given in accordance with Section 5 of this Article II not less than ten (10) nor more than sixty (60) days before the date of the meeting being noticed. The notice shall specify the place, date and hour of the meeting and (i) in the case of a special meeting the general nature of the business to be transacted, or (ii) in the case of the annual meeting those matters which the board or directors, at the time of giving the notice, intends to present for action by the shareholders. The notice of any meeting at which directors are to be elected shall include the name of any nominee or nominees which, at the time of the notice, management intends to present for election.

If action is proposed to be taken at any meeting for approval of (i) contracts or transactions in which a director has a direct or indirect financial interest, pursuant to Section 310 of the Corporations Code of California, (ii) an amendment to the articles of incorporation, pursuant to Section 902 of such Code, (iii) a reorganization of the corporation, pursuant to Section 1201 of such Code, (iv) dissolution of the corporation, pursuant to Section 1900 of such Code, or (v) a distribution to preferred shareholders, pursuant to Section 2007 of such Code, the notice shall also state the general nature of such proposal.

Section 5. MANNER OF GIVING NOTICE, AFFIDAVIT OF NOTICE. Notice of any meeting of shareholders shall be given either personally or by first-class mail or telegraphic or other written communication, charges prepaid, addressed to the shareholder at the address of such shareholder appearing on the books of the corporation or given by the shareholder to the corporation for the purpose of notice. If no such address appears on the corporation’s books or is given, notice shall be deemed to have been given if sent by mail or telegram to the corporation’s principal executive office, or if published at least once in a newspaper of general circulation in the county where this office is located. Notice shall be deemed to have been given at the time when delivered personally or deposited in the mail or sent by telegram or other means of written communication.

If any notice addressed to a shareholder at the address of such shareholder appearing on the books of the corporation is returned to the corporation by the United States Postal Service marked to indicate that the United States Postal Service is unable to deliver the notice to the shareholder at such address, all future notices or reports shall be deemed to have been duly given without further mailing if the same shall be available to the shareholder upon written demand of the shareholder at the principal executive office of the corporation for a period of one year from the date of the giving of such notice.

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An affidavit of the mailing or other means of giving any notice of any shareholders’ meeting shall be executed by the secretary, assistant secretary or any transfer agent of the corporation giving such notice, and shall be filed and maintained in the minute book of the corporation.

Section 6. QUORUM. The presence in person or by proxy of the holders of a majority of the shares entitled to vote at any meeting of shareholders shall constitute a quorum for the transaction of business. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum, if any action taken (other than adjournment) is approved by at least a majority of the shares required to constitute a quorum.

Section 7. ADJOURNED MEETING AND NOTICE THEREOF. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the vote of the majority of the shares represented at such meeting, either in person or by proxy, but in the absence of a quorum, no other business may be transacted at such meeting.

When any meeting of shareholders, either annual or special, is adjourned to another time or place, notice need not be given of the adjourned meeting if the time and place thereof are announced at a meeting at which the adjournment is taken, unless a new record date for the adjourned meeting is fixed, or unless the adjournment is for more than forty-five (45) days from the date set for the original meeting, in which case the board of directors shall set a new record date. Notice of any such adjourned meeting shall be given to each shareholder of record entitled to vote at the adjourned meeting in accordance with the provisions of Sections 4 and 5 of this Article II. At any adjourned meeting the corporation may transact any business which might have been transacted at the original meeting.

Section 8. VOTING. Unless a record date set for voting purposes be fixed as provided in Section I of Article VII of these bylaws, then subject to the provisions of Section 702 to Section 704, inclusive, of the Corporations Code of California, only persons in whose names shares entitled to vote stand on the stock records of the corporation at the close of business on the business day next preceding the day on which notice is given (or, if notice is waived, at the close of business on the business day next preceding the day on which the meeting is held) shall be entitled to vote at such meeting. Any shareholder entitled to vote on any matter other than elections of directors or officers, may vote part of the shares in favor of the proposal and refrain from voting the remaining shares or vote them against the proposal, but, if the shareholder fails to specify the number of shares such shareholder is voting affirmatively, it will be conclusively presumed that the shareholder’s approving vote is with respect to all shares such shareholder is entitled to vote. Such vote may be by voice vote or by ballot; provided, however, that all elections for directors must be by ballot upon demand by a shareholder at any election and before the voting begins.

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At a shareholders’ meeting involving the election of directors, no shareholder shall be entitled to cumulate votes (i.e., cast for any one or more candidates a number of votes greater than the number of the shareholder’s shares) unless such candidate or candidates’ names have been placed in nomination prior to the voting and a shareholder has given notice prior to the voting of the shareholder’s intention to cumulate votes. If any shareholder has given such notice, then every shareholder entitled to vote may cumulate such shareholder’s votes for candidates in nomination and give one candidate a number of votes equal to the number of directors to be elected multiplied by the number of votes to which such shareholder’s shares are entitled, or distribute the shareholder’s votes on the same principle among any or all of the candidates, as the shareholder thinks fit. The candidates receiving the highest number of votes up to the number of directors to be elected shall be elected.

Section 9. WAIVER OF NOTICE OR CONSENT BY ABSENT SHAREHOLDERS. The transactions at any meeting of shareholders, either annual or special, however called and noticed, and wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present either in person or by proxy, and if, either before or after the meeting, each person entitled to vote, not present in person or by proxy, signs a written waiver of notice or a consent to a holding of the meeting, or an approval of the minutes thereof. The waiver of notice or consent need not specify either the business to be transacted or the purpose of any regular or special meeting of shareholders, except that if action is taken or proposed to be taken for approval of any of those matters specified in the second paragraph of Section 4 of this Article II, the waiver of notice or consent shall state the general nature of such proposal. All such waivers, consents or approvals shall be filed with the corporate records or made a part of the minutes of the meeting.

Attendance of a person at a meeting shall also constitute a waiver of notice of such meeting, except when the person objects, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened, and except that attendance at a meeting is not a waiver of any right to object to the consideration of matters not included in the notice if such objection is expressly made at the meeting.

Section 10. SHAREHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING. Any action which may be taken at any annual or special meeting of shareholders may be taken without a meeting and without prior notice, if a consent in writing, setting forth the action so taken, is signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. In the case of election of directors, such consent shall be effective only if signed by the holders of all outstanding shares entitled to vote for the election of directors. All such consents shall be filed with the secretary of the corporation and shall be maintained in the corporate records. Any shareholder giving a written consent, or the shareholder’s proxy holders, or a transferee of the shares or a personal representative of the shareholder or their respective proxy holders, may revoke the consent by a writing received by the secretary of the corporation prior to the time that written consents of the number of shares required to authorize the proposed action have been filed with the secretary.

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If the consents of all shareholders entitled to vote have not been solicited in writing, and if the unanimous written consent of all such shareholders shall not have been received, the secretary shall give prompt notice of the corporate action approved by the shareholders without a meeting. Such notice shall be given in the manner specified in Section 5 of this Article II. In the case of approval of (i) contracts or transactions in which a director has a direct or indirect financial interest, pursuant to Section 310 of the Corporations Code of California, (ii) indemnification of agents of the corporation, pursuant to Section 317 of such Code, (iii) a reorganization of the corporation, pursuant to Section 1201 of such Code, and (iv) a distribution to preferred shareholders, pursuant to Section 2007 of such Code, such notice shall be given at least ten (10) days before the consummation of any such action authorized by any such approval.

Section 11. PROXIES. Every person entitled to vote for directors or on any other matter shall have the right to do so either in person or by one or more agents authorized by a written proxy signed by the person and filed with the secretary of the corporation. A proxy shall be deemed signed if the shareholder’s name is placed on the proxy (whether by manual signature, typewriting, telegraphic transmission or otherwise) by the shareholder or the shareholder’s attorney in fact. A validly executed proxy which does not state that it is irrevocable shall continue in full force and effect unless revoked by the person executing it, prior to the vote pursuant thereto, by a writing delivered to the corporation stating that the proxy is revoked or by a subsequent proxy executed by, or attendance at the meeting and voting in person by the person executing the proxy; provided, however, that no such proxy shall be valid after the expiration of eleven (11) months from the date of such proxy, unless otherwise provided in the proxy. The revocability of a proxy that states on its face that it is irrevocable shall be governed by the provisions of Section 705(e) and (f) of the Corporations Code of California.

Section 12. INSPECTORS OF ELECTION. Before any meeting of shareholders, the board of directors may appoint any persons other than nominees for office to act as inspectors of election at the meeting or its adjournment. If no inspectors of election are appointed, the chairman of the meeting may, and on the request of any shareholder or his proxy shall, appoint inspectors of election at the meeting. The number of inspectors shall be either one (1) or three (3). If inspectors are appointed at a meeting on the request of one or more shareholders or proxies, the holders of a majority of shares or their proxies present at the meeting shall determine whether one (1) or three (3) inspectors are to be appointed. If any person appointed as inspector fails to appear or fails or refuses to act, the vacancy may be filled by appointment by the board of directors before the meeting, or by the chairman at the meeting.

The duties of these inspectors shall be as follows:

(a) Determine the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, and the authenticity, validity, and effect of proxies;

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(b) Receive votes, ballots, or consents;

(c) Hear and determine all challenges and questions in any way arising in connection with the right to vote;

(d) Count and tabulate all votes or consents;

(e) Determine the election result; and

(f) Do any other acts that may be proper to conduct the election or vote with fairness to all shareholders.

Section 13. NOMINATION OF DIRECTORS. Nominations for election of members of the board of directors may be made by the board of directors or by any shareholder of any outstanding class of capital stock of the corporation entitled to vote for the election of directors. Notice of intention to make any nominations (other than for persons named in the notice of the meeting at which such nomination is to be made) shall be made in writing and shall be delivered or mailed to the President or to the Chief Executive Officer of the corporation no more than sixty (60) days prior to any meeting of shareholders called for the election of directors and no more than ten (10) days after the date the notice of such meeting is sent to shareholders pursuant to Section 4 of Article II of these Bylaws; provided, however, that if ten (10) days’ notice of such meeting is sent to shareholders, such notice of intention to nominate must be received by the President or by the Chief Executive Officer of the corporation not later than time fixed in the notice of the meeting for the opening of the meeting. Such notification shall contain the following information to the extent known to the notifying shareholder: (a) the name and address of each proposed nominee; (b) the principal occupation of each proposed nominee; (c) the number of shares of capital stock of the corporation owned by each proposed nominee; (d) the name and residence address of the notifying shareholder; (e) the number of shares of capital stock of the corporation owned by the notifying shareholder; (f) with the written consent of the proposed nominee, a copy of which shall be furnished with the notification, whether the proposed nominee has ever been convicted of or pleaded nolo contendere to any criminal offense involving dishonesty or breach of trust, filed a petition in bankruptcy, or been adjudged a bankrupt. The notice shall be signed by the nominating shareholder and by the nominee. Nominations not made in accordance herewith shall be disregarded by the Chairman of the meeting and, upon his instructions, the inspectors of election shall disregard all votes cast for each such nominee. The restrictions set forth in this paragraph shall not apply to nomination of a person to replace a proposed nominee who has died or otherwise become incapacitated to serve as a director between the last day for giving notice hereunder and the date of election of directors if the procedure called for in this paragraph was followed with respect to the nomination of the proposed nominee.

A copy of the preceding paragraph shall be set forth in the notice to shareholders of any meeting at which directors are to be elected.

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ARTICLE III

DIRECTORS

Section 1. POWERS. Subject to the provisions of the California General Corporation Law and any limitations in the articles of incorporation and these bylaws relating to action required to be approved by the shareholders or by the outstanding shares, the business and affairs of the corporation shall be managed and all corporate powers shall be exercised by or under the direction of the board of directors.

Without prejudice to such general powers, but subject to the same limitations, it is hereby expressly declared that the directors shall have the power and authority to:

(a) Select and remove all officers, agents, and employees of the corporation, prescribe such powers and duties for them as may not be inconsistent with law, with the articles of incorporation or these bylaws, fix their compensation, and require from them security for faithful service.

(b) Change the principal executive office or the principal business office in the State from one location to another; cause the corporation to be qualified to do business in any other state, territory, dependency, or foreign country and conduct business within or without the State; designate any place within or without the State for the holding of any shareholders’ meeting, or meetings, including annual meetings; adopt, make and use a corporate seal, and prescribe the forms of certificates of stock, and alter the form of such seal and of such certificates from time to time as in their judgment they may deem best, provided that such forms shall at all times comply with the provisions of law.

(c) Authorize the issuance of shares of stock of the corporation from time to time, upon such terms as may be lawful, in consideration of money paid, labor done or services actually rendered, debts or securities canceled, tangible or intangible property actually received.

(d) Borrow money and incur indebtedness for the purpose of the corporation, and cause to be executed and delivered therefor, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations, or other evidences of debt and securities therefor.

Section 2. NUMBER AND QUALIFICATION OF DIRECTORS. The authorized number of directors shall be not less than nine (9) nor more than seventeen (17). The number of directors on the Board may be changed, or a definite number may be fixed without provisions for an indefinite number, by a duly adopted amendment to the Articles of Incorporation or by an

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amendment to this bylaw, duly adopted by the vote or written consent of a majority of the outstanding shares entitled to vote; provided, however, that an amendment reducing the fixed number or the minimum number of directors to a number less than five (5) cannot be adopted if the votes cast against its adoption at a meeting, or the shares not consenting in the case of an action by written consent, are equal to more than sixteen and two-thirds percent (16-2/3%) of the outstanding shares entitled to vote thereon. Subject to the foregoing provisions for changing the number of directors, the number of directors is initially fixed at eleven (11).

Section 3. ELECTION AND TERM OF OFFICE OF DIRECTORS. Directors shall be elected at each annual meeting of the shareholders to hold office until the next annual meeting, but if any such annual meeting is not held or the directors are not elected at any annual meeting, the directors may be elected at any special meeting of shareholders held for that purpose, or at the next annual meeting of shareholders held thereafter. Each director, including a director elected to fill a vacancy, shall hold office until the expiration of the term for which elected and until a successor has been elected and qualified or until his earlier resignation or removal or his office has been declared vacant in the manner provided in these bylaws.

Section 4. RESIGNATION AND REMOVAL OF DIRECTORS. Any director may resign effective upon giving written notice to the chairman of the board, the president, the secretary or the board of directors of the corporation, unless the notice specified a later time for the effectiveness of such resignation, in which case such resignation shall be effective at the time specified. Unless such resignation specified otherwise, its acceptance by the corporation shall not be necessary to make it effective. The board of directors may declare vacant the office of a director who has been declared of unsound mind by an order of court or convicted of a felony. Any or all of the directors may be removed without cause if such removal is approved by the affirmative vote of a majority of the outstanding shares entitled to vote provided that no director may be removed (unless the entire board is removed) when the votes cast against removal (or, if such action is taken by written consent, the shares held by persons not consenting in writing to such removal) would be sufficient to elect such director if voted cumulatively at an election at which the same total number of votes were cast (or, if such action is taken by written consent, all shares entitled to vote were voted) and the entire number of directors authorized at the time of the director’s most recent election were then being elected. No reduction of the authorized number of directors shall have the effect of removing any director before his term of office expires.

Section 5. VACANCIES. Vacancies in the board of directors may be filled by a majority of the remaining directors, though less than a quorum, or by a sole remaining director, except that a vacancy created by the removal of a director by the vote or written consent of the shareholders or by court order may be filled only by approval of the shareholders. Each director so elected shall hold office until the next annual meeting of the shareholders and until a successor has been elected and qualified.

A vacancy in the board of directors exists as to any authorized position of director which is not then filled by a duly elected director, whether caused by death, resignation, removal, increase in the authorized number of directors or otherwise.

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The shareholder may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors, but any such election by written consent shall require the consent of a majority of the outstanding shares entitled to vote. If the resignation of a director is effective at a future time, the board of directors may elect a successor to take office when the resignation becomes effective.

If after the filing of any vacancy by the directors, the directors then in office who have been elected by the shareholders shall constitute less than a majority of the directors then in office, any holder or holders of an aggregate of five percent or more of the total number of shares at the time outstanding having the right to vote for such directors may call a special meeting of the shareholders to elect the entire board. The term of office of any director not elected by the shareholders shall terminate upon the election of a successor.

Section 6. PLACE OF MEETINGS. Regular meetings of the board of directors shall be held at any place within or without the State that has been designated from time to time by resolution of the board. In the absence of such designation, regular meetings shall be held at the principal executive office of the corporation. Special meetings of the board shall be held at any place within or without the State that has been designated in the notice of the meeting or, if not stated in the notice or there is not notice, at the principal executive office of the corporation. Any meeting, regular or special, may be held by conference telephone or similar communication equipment, so long as all director participating in such meeting can hear one another, and all such directors shall be deemed to be present in person at such meeting.

Section 7. ANNUAL MEETINGS. Immediately following each annual meeting of shareholders, the board of directors shall hold a regular meeting for the purpose of transaction of other business. Notice of this meeting shall not be required.

Section 8. OTHER REGULAR MEETINGS. Other regular meetings of the board of directors shall be held without call at such time as shall from time to time be fixed by the board of directors. Such regular meetings may be held without notice, provided the notice of any change in the time of any such meetings shall be given to all of the directors. Notice of a change in the determination of the time shall be given to each director in the same manner as notice for special meetings of the board of directors.

Section 9. SPECIAL MEETINGS. Special meetings of the board of directors for any purpose or purposes may be called at any time by the chairman of the board or the president or any vice president or the secretary or any two directors.

Notice of the time and place of special meetings shall be delivered personally or by telephone to each director or sent by first-class mail or telegram, charges prepaid, addressed to each director at his or her address as it is shown upon the records of the corporation. In case such notice is mailed, it

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shall be deposited in the United States mail at least four (4) days prior to the time of the holding of the meeting. In case such notice is delivered personally, or by telephone or telegram, it shall be delivered personally or by telephone or to the telegraph company at least forty-eight (48) hours prior to the time of the holding of the meeting. Any oral notice given personally or by telephone may be communicated to either the director or to a person at the office of the director who the person given the notice has reason to believe will promptly communicate it to the director. The notice need not specify the purpose of the meeting nor the place if the meeting is to be held at the principal executive office of the corporation.

Section 10. QUORUM. A majority of the authorized number of directors shall constitute a quorum for the transaction of business, except to adjourn as hereinafter provided. Every act or decision done or made by a majority of the directors present at a meeting duly held at which a quorum is present shall be regarded as the act of the board of directors, subject to the provisions of Section 310 of the Corporations Code of California (approval of contracts or transactions which a director has a direct or indirect material financial interest), Section 311 (appointment of committees), and Section 317(e) (indemnification of directors). A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for such meeting.

Section 11. WAIVER OF NOTICE. The transactions of any meeting of the board of directors, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice if a quorum be present and if, either before or after the meeting, each of the directors not present signs a written waiver of notice, a consent to holding the meeting or an approval of the minutes thereof The waiver of notice or consent need not specify the purpose of the meeting. All such waiver, consents and approvals shall be filed with the corporate records or made a part of the minutes of the meeting. Notice of a meeting shall also be deemed given to any director who attends the meeting without protesting, prior thereto or at its commencement, the lack of notice to such director.

Section 12. ADJOURNMENT. A majority of the directors present, whether or not constituting a quorum, may adjourn any meeting to another time and place.

Section 13. NOTICE OF ADJOURNMENT. Notice of the time and place of holding an adjourned meeting need not be given, unless the meeting is adjourned for more than twenty-four (24) hours, in which case notice of such time and place shall be given prior to the time of the adjourned meeting, in the manner specified in Section 8 of this Article III, to the directors who were not present at the time of the adjournment.

Section 14. ACTION WITHOUT MEETING. Any action required or permitted to be taken by the board of directors may be taken without a meeting, if all members of the board shall individually or collectively consent in writing to such action. Such action by written consent shall have the same force and effect as a unanimous vote of the board of directors. Such written consent or consents shall be filed with the minutes of the proceedings of the board.

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Section 15. FEES AND COMPENSATION OF DIRECTORS. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement of expenses, as may be fixed or determined by resolution of the board of directors. Nothing herein contained shall be construed to preclude any director from servicing the corporation in any other capacity as an office, agent, employee, or otherwise, and receiving compensation for such services.

ARTICLE IV

COMMITTEES

Section 1. COMMITTEES OF DIRECTORS. The board of directors may, by resolution adopted by a majority of the authorized number of directors, designate one or more committees, each consisting of two or more directors, to serve at the pleasure of the board. The board may designate, to serve at the pleasure of the board. The board may designate one or more directors as alternate members of any committee, who may replace any absent member at any meeting of the committee. Any such committee, to the extent provided in the resolution of the board, shall have all the authority of the board, except with respect to:

(a) the approval of any action which, under the General Corporation Law of California, also requires shareholders’ approval or approval of the outstanding shares;

(b) the filing of vacancies on the board of directors or in any committee;

(c) the fixing of compensation of the directors for serving on the board or on any committee;

(d) the amendment or repeal of bylaws or the adoption of new bylaws;

(e) the amendment or repeal of any resolution of the board of directors which by its express terms is not so amendable or repealable;

(f) a distribution to the shareholders of the corporation, except at a rate or in a periodic amount or within a price range determined by the board of directors; or

(g) the appointment of any other committees of the board of directors or the members thereof.

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Section 2. MEETINGS AND ACTION OF COMMITTEES. Meetings and action of committees shall be governed by, and held and taken in accordance with, the provisions of Article III, Sections 6 (place of meetings), 8 (regular meetings), 9 (special meetings and notice), 10 (quorum), 11 (waiver of notice), 12 (adjournment), 13 (notice of adjournment) and 14 (action without meeting), with such changes in the context of those bylaws as are necessary to substitute the committee and its members for the board of directors and its members, except that the time of regular meetings of committees may be determined by resolution of the board of directors as well as the committee, special meetings of committees may also be called by resolutions of the board of directors and notice of special meetings of committees shall also be given to all alternate members, who shall have the right to attend all meetings of the committee. The board of directors may adopt rules for the government of any committee not inconsistent with the provisions of these bylaws.

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ARTICLE V

OFFICERS

Section 1. OFFICERS. The officers of the corporation shall be a president, a secretary and a chief financial officer. The corporation may also have, at the discretion of the board of directors, a chairman of the board, one or more vice presidents, one or more assistant secretaries, one or more assistant treasurers, and such other officers as may be appointed in accordance with the provisions of Section 3 of this Article V. Any two or more offices may be held by the same person.

Section 2. ELECTION OF OFFICERS. The officers of the corporation, except such officers as may be appointed in accordance with the provisions of Section 3 or Section 5 of this Article V, shall be chosen by the board of directors, and such shall serve at the pleasure of the board, subject to the rights, if any, of an officers under any contract of employment.

Section 3. SUBORDINATE OFFICERS, ETC. The board of directors may appoint, and may empower the president to appoint, such other officers as the business of the corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in the bylaws or as the board of directors may from time to time determine.

Section 4. REMOVAL AND RESIGNATION OF OFFICERS. Subject to the rights, if any, of an officer under any contract of employment, any officer may be removed, either with or without cause, by the board of directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the board of directors, by any officer upon whom such power or removal may be conferred by the board of directors.

Any officer may resign at any time by giving written notice to the corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Any such resignation is without prejudice to the rights, if any, of the corporation under any contract to which the officer is a party.

Section 5. VACANCIES IN OFFICES. A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled in the manner prescribed in these bylaws for regular appointments to such office.

Section 6. CHAIRMAN OF THE BOARD. The chairman of the board, if such an officer be elected, shall, if present, preside at all meetings of the board of directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the board of directors or prescribed by the bylaws. If there is no president, the chairman of the board shall in addition be the chief executive officer of the corporation and shall have the powers and duties prescribed in Section 7 of this Article V.

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Section 7. PRESIDENT. Subject to such supervisory powers, if any, as may be given by the board of directors to the chairman of the board, if there be such an officer, the president shall be the chief executive officer of the corporation and shall, subject to the control of the board of directors, have general supervision, direction and control of the business and the officers of the corporation. He shall preside at all meetings of the shareholders and, in the absence of the chairman of the board, or if there be none, at all meetings of the board of directors. He shall have the general powers and duties of management usually vested in the office of president of a corporation, and shall have such other powers and duties as may be prescribed by the board of directors or the bylaws.

Section 8. VICE PRESIDENTS. In the absence or disability of the president, the vice presidents, if any, in order of their rank as fixed by the board of directors or, if not ranked, a vice president designated by the board of directors shall perform all the duties of the president, and when so acting shall have all the powers of, and be subject to all the restrictions upon, the president. The vice presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the board of directors or the bylaws, the president or the chairman of the board.

Section 9. SECRETARY. The secretary shall keep or cause to be kept, at the principal executive office or such other place as the board of directors may order, a book of minutes of all meetings of directors, committees of directors and shareholders, with the time and place of holding, whether regular or special, and, if special, how authorized, the notice thereof given, the names of those present at directors’ and committee meetings, the number of shares present or represented at shareholders’ meetings, and the proceedings thereof.

The secretary shall keep, or cause to be kept, at the principal executive office or at the office of the corporation’s transfer agent or registrar, as determined by resolution of the board of directors, a share register, or a duplicate share register, showing the names of all shareholders and their addresses, the number and classes of shares held by each, the number and date of certificates issued for the same, and the number and date of cancellation of every certificate surrendered for cancellation.

The secretary shall give, or cause to be given, notice of all meetings of the shareholders and of the board of directors required by the bylaws or bylaw to be given, and he shall keep the seal of the corporation in safe custody, as may be prescribed by the board of directors or by the bylaws.

Section 10. CHIEF FINANCIAL OFFICER. The chief financial officer shall keep and maintain, or cause to be kept and maintained, adequate and correct books and records of accounts of the properties and business transactions of the corporation, including accounts of its assets, liabilities, receipts, disbursements, gains, losses, capital, retained earnings and shares. The books of account shall at all reasonable times be open to inspection by any director.

The chief financial officer shall deposit all moneys and other valuables in the name and to the credit of the corporation with such depositaries as may be designated by the board of directors. He shall disburse the funds of the corporation as may be ordered by the board of directors, shall render

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to the president and directors, whenever they request it, an account of all of his transactions as chief financial officer and of the financial condition of the corporation, and shall have other powers and perform such other duties as may be prescribed by the board of directors or the bylaws.

ARTICLE VI

INDEMNIFICATION OF DIRECTORS AND OFFICERS

OF THE CORPORATION; PURCHASE OF LIABILITY INSURANCE

Section 1. RIGHT TO INDEMNIFICATION. Each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a “proceeding”), by reason of the fact that he or she is or was a director or officer of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity as a director, officer, employee or agent or in any other capacity while serving as a director, officer, employee or agent, shall be indemnified and held harmless by the corporation to the fullest extent authorized by the General Corporation Law of the State of California as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the corporation to provide broader indemnification rights than such law permitted the corporation to provide prior to amendment), against all expenses, liability and loss (including attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by such indemnity in connection therewith and such indemnification shall continue as to an indemnity who has ceased to be a director or officer and shall inure to the benefit of the indemnity’s heirs, executors and administrators; provided, however, that except as provided in Section 2 of this Article VI with respect to proceedings to enforce rights to indemnification, the corporation shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of Directors of the corporation. The right to indemnification conferred in this Article VI shall be a contract right and shall include the right to be paid by the corporation the expenses incurred in defending any such proceeding in advance of its final disposition (hereinafter an “advancement of expenses”); provided, however, that if the General Corporation Law of the State of California shall so require, an advancement of expenses incurred by an indemnitee in his or her capacity as a director or officer shall be made only upon delivery to the corporation of an undertaking, by or on behalf of such indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal that such indemnitee is not entitled to be indemnified for such expenses under this Article VI or otherwise (hereinafter an “undertaking”), which undertaking shall be accepted from the indemnitee without reference to indemnitee’s financial ability to repay.

Section 2. RIGHT OF INDEMNITEE TO BRING SUIT. If a claim under Section I of this Article VI is not paid in full by the corporation within 90 days after a written claim has been received by the corporation (or such shorter period of time, if any, provided by a contract entered into

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with indemnitee, if any, pursuant to Section 6 of this Article VI), the indemnitee may at any time thereafter bring suit against the corporation to recover the unpaid amount of the claim. If successful in whole or in part in any suit or in a suit brought by the corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the indemnitee shall be entitled to be paid also the expense of prosecuting or defending such suit. If the indemnitee has not met any applicable standard of conduct set forth in the General Corporation Law of the State of California: (i) it shall be a defense in any suit brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an advancement of expenses); and (ii) in any suit by the corporation to recover an advancement of expenses pursuant to the terms of an undertaking the corporation shall be entitled to recover such expenses. Neither the failure of the corporation (including its Board of Directors, independent legal counsel, or its shareholders) to have made a determination prior to the commencement of such suit that indemnification of the indemnitee is proper in the circumstances because the indemnitee has met any applicable standard of conduct set forth in the General Corporation Law of the State of California, nor an actual determination by the corporation (including its Board of Directors, independent legal counsel, or its shareholders) that the indemnitee has not met any such applicable standard of conduct, shall create a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the indemnitee, be a defense to such suit.

Section 3. NON-EXCLUSIVITY RIGHTS. The rights to indemnification and to the advancement of expenses conferred in this Article VI shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, the Articles of Incorporation, these Bylaws, any agreement, the vote of shareholders or disinterested directors or otherwise.

Section 4. INSURANCE. The corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the corporation or other corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the corporation would have the power to indemnify such person against such expense, liability or loss under the General Corporation Law of California.

Section 5. OTHER INDEMNIFICATION. The corporation may, to the extent authorized from time to time by the Board of Directors, grant rights to indemnification and to the advancement of expenses to any director, officer, employee or agent of the corporation, whether or not acting in his or her capacity as such or at the request of the corporation, to the fullest extent of the provisions of this Article VI with respect to the indemnification and advancement of expenses of directors and officers of the corporation.

Section 6. AUTHORIZATION FOR CONTRACTS. The Board of Directors may, without shareholder approval, authorize the corporation to enter into agreements, including any amendments or modifications thereto, with any of its directors, officers or other persons described in Section I of this Article VI providing for indemnification of such persons to the maximum extent permitted under applicable law and the corporation’s Articles of Incorporation and Bylaws.

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Section 7. EFFECT OF AMENDMENT. Any amendment, repeal or modification of any provision of this Article VI shall not adversely affect any right or protection of a director, officer, employee or agent of the corporation existing at the time of such amendment, repeal or modification.

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ARTICLE VII

RECORDS AND REPORTS

Section 1. MAINTENANCE AND INSPECTION OF SHARE REGISTER. The corporation shall keep at its principal executive office, or at the office of its transfer agent or registrar, if either be appointed and as determined by resolution of the board of directors, a record of its shareholders, given the names and addresses of all shareholders and the number and class of shares held by each shareholder.

A shareholder or shareholders of the corporation holding at least five percent (5%) in the aggregate of the outstanding voting shares of the corporation may (i) inspect and copy the records of shareholders’ names and addresses and shareholdings during usual business hours upon five days prior written demand upon the corporation, and/or (ii) obtain from the transfer agent of the corporation, upon written demand and upon the tender of such transfer agent’s usual charges for such list, a list of the shareholders’ names and addresses, who are entitled to vote for the election of directors, and their shareholdings, as of the most recent record date for which such list has been compiled or as of a date specified by the shareholder subsequent to the date of demand. Such list shall be made available by the transfer agent on or before the later of five (5) days after the demand is received or the date specified therein as the date as of which the list is to be compiled. The record of shareholders shall also be open to inspection upon the written demand of any shareholder or holder of a voting trust certificate, at any time during usual business hours, for a purpose reasonably related to such holder’s interests as a shareholder or as the holder of a voting trust certificate. Any inspection and copying under this Section may be made in person or by an agent or attorney of the shareholder or holder of a voting trust certificate making such demand.

Section 2. MAINTENANCE AND INSPECTION OF BYLAWS. The corporation shall keep at its principal executive office, or if its principal executive office is not in this state at its principal business office in this state, the original or a copy of the bylaws as amended to date, which shall be open to inspection by the shareholders at all reasonable times during office hours. If the principal executive office of the corporation is outside this state and the corporation has no principal business office in this state, the secretary shall, upon the written request of any shareholder, furnish to such shareholder a copy of the bylaws as amended to date.

Section 3. MAINTENANCE AND INSPECTION OF OTHER CORPORATE RECORDS. The accounting books and records and minutes of proceedings of the shareholders and the board of directors and any committee or committees of the board of directors shall be kept at such place or places designated by the board of directors, or, in the absence of such designation, at the principal executive office of the corporation. The minutes shall be kept in written form and the accounting books and records shall be kept either in written form or in any other form capable of being converted into written form. Such minutes and accounting books and records shall be open to inspection upon the written demand of any shareholder or holder of a voting trust certificate, at any reasonable time during usual business hours, for a purpose reasonably related to such holder’s interests as a shareholder or as the holder of a voting trust certificate. Such inspection may be made in person or by an agent or attorney, and shall include the right to copy and make extracts.

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A shareholder or shareholders holding at least five percent in the aggregate of the outstanding voting shares of the corporation or who hold at least one percent of such voting shares and have filed a Schedule 14B with the United States Securities and Exchange Commission relating to the election of directors of the corporation shall have (in person or by agent or attorney) the absolute right to inspect and copy the records of shareholders’ names and addresses and shareholdings during usual business hours upon five business days prior written demand upon the corporation and to obtain from the transfer agent for the corporation, upon written demand and upon the tender of its usual charges, a list of the shareholders’ names and addresses, who are entitled to vote for the election of directors, and their shareholdings, as of the most recent record date for which it has been compiled or as of a date specified by the shareholder subsequent to the date of demand. The list shall be made available on or before the later of five business days after the demand is received or the date specified therein as the date of which the list is to be compiled.

Every director shall have the absolute right at any reasonable time to inspect and copy all books, records and documents of every kind and to inspect the physical properties of this corporation and any subsidiary of this corporation. Such inspection by a director may be made in person or by agent or attorney and the right of inspection includes the right to copy and make extracts.

The foregoing rights of inspection shall extend to the records of each subsidiary of the corporation.

Section 4. ANNUAL REPORT TO SHAREHOLDERS. The annual report to shareholders referred to in Section 1501 of the General Corporation Law is expressly dispensed with, but nothing herein shall be interpreted as prohibiting the board of directors from issuing annual or other periodic reports to the shareholders of the corporations as they deem appropriate.

Section 5. FINANCIAL STATEMENTS. A copy of any annual financial statement and any income statement of the corporation for each quarterly period of each fiscal year, and any accompanying balance sheet of the corporation as of the end of each such period, that has been prepared by the corporation shall be kept on file in the principal executive office of the corporation for twelve (12) months and each such statement shall be exhibited at all reasonable times to any shareholder demanding an examination of any such statement or a copy shall be mailed to any such shareholder.

If a shareholder or shareholders holding at least five percent (5%) of the outstanding shares of any class of stock of the corporation makes a written request to the corporation for an income statement of the corporation for the three-month, six-month or nine-month period of the then current fiscal year ended more than thirty (30) days prior to the date of the request, and a balance sheet of the corporation as of the end of such period, the chief financial officer shall cause such statement to be prepared, if not already prepared, and shall deliver personally or mail such statement or statements to the person making the request within thirty (30) days after the receipt of such request. If the corporation has not sent to the shareholders its annual report for the last fiscal year, this report shall likewise be delivered or mailed to such shareholder or shareholders within thirty (30) days after such request.

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The corporation also shall, upon the written request of any shareholder, mail to the shareholder a copy of the last annual, semi-annual or quarterly income statement which it has prepared and a balance sheet as of the end of such period.

The quarterly income statements and balance sheets referred to in this section shall be accompanied by the report thereon, if any, of any independent accountants engaged by the corporation or the certificate of an authorized officer of the corporation that such financial statement were prepared without audit from the books and records of the corporation.

Section 6. ANNUAL STATEMENT OF GENERAL INFORMATION. The corporation shall, in a timely manner, in each year, file with the Secretary of State of California, on the prescribed form, a statement setting forth the authorized number of Directors, the names and complete business or residence addresses of all incumbent Directors, the names and complete business or residence addresses of the Chief Executive Officer, Secretary, and Chief Financial Officer, the street address of its principal executive office or principal business office in this state and the general type of business constituting the principal business activity of the corporation, together with a designation of the agent of the corporation for the purpose of the service of process, all in compliance with California Corporations Code Section 1502.

ARTICLE VIII

GENERAL CORPORATE MATTERS

Section 1. RECORD DATE. For purposes of determining the shareholders entitled to notice of any meeting or to vote or entitled to receive payment of any dividend or other distribution or allotment of any rights or entitled to exercise any rights in respect of any other lawful action, the board of directors may fix, in advance, a record date, which shall not be more than sixty (60) days nor less than ten (10) days prior to the date of any such meeting nor more than sixty (60) days prior to any other action, and in such case only shareholders of record on the date so fixed are entitled to notice and to vote or to receive the dividend, distribution or allotment of rights or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the corporation after the record date fixed as aforesaid, except as otherwise provided in the California General Corporation Law.

If the board of directors does not so fix a record date:

(a) The record date for determining shareholders entitled to notice of or to vote at a meeting of shareholders shall be at the close of business on the business day next preceding the day on which notice is given or, if notice is waived, at the close of business on the business day next preceding the day on which the meeting is held.

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(b) The record date for determining shareholders entitled to give consent to corporate action in writing without a meeting, when no prior action by the board has been taken, shall be the day on which the first written consent is given.

(c) The record date for determining shareholders for any other purpose shall be at the close of business on the day on which the board adopts the resolution relating thereto, or the sixtieth (60th) day prior to the date of such other action, whichever is later.

Section 2. CHECKS, DRAFTS, EVIDENCES OF INDEBTEDNESS. All checks, drafts or other orders for payment of money, notes or other evidences of indebtedness, issued in the name of or payable to the corporation, shall be signed or endorsed by such person or persons and in such manner as, from time to time, shall be determined by resolution of the Board of Directors.

Section 3. CORPORATE CONTRACTS AND INSTRUMENTS, HOW EXECUTED. The board of directors, except as in the bylaws otherwise provided, may authorize any officer or officers, agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the corporation, and such authority may be general or confined to specific instances; and, unless so authorized or ratified by the board of directors or within the agency power of an officer, no officer, agent or employee shall have any power or authority to bind the corporation by any contract or engagement or to pledge its credit or to render it liable for any purpose or to any amount.

Section 4. STOCK CERTIFICATES. A certificate or certificates for shares of the capital stock of the corporation shall be issued to each shareholder when any such shares are fully paid, and the board of directors may authorize the issuance of certificates or shares as partly paid provided that such certificates shall state the amount of the consideration to be paid therefor and the amount paid thereon. All certificates shall be signed in the name of the corporation by the chairman of the board or vice chairman of the board or the president or vice president and by the chief financial officer or an assistant treasurer or the secretary or any assistant secretary, certifying the number of shares and the class or series of shares owned by the shareholder. Any or all of the signatures on the certificates may be facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the corporation with the same effect as if such person were an officer, transfer agent or registrar at the date of issue.

Any such certificate shall also contain such legend or other statement as may be required by Section 418 of the General Corporation Law, the Corporate Securities Law of 1968, and any agreement between the corporation and the issuee thereof, and may contain such legend or other statement as may be required by any other applicable law or regulation or agreement.

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Section 5. LOST CERTIFICATES. Except as hereinafter in this Section provided, no new certificates for shares shall be issued in lieu of an old certificate unless the latter is surrendered to the corporation and canceled at the same time. The board of directors may in case any share certificate or certificate for any other security is lost, stolen or destroyed, authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions as the board may require, including provision for indemnification of the corporation secured by a bond or other adequate security sufficient to protect the corporation against any claim that may be made against it, including any expense or liability, on account of the alleged loss, theft or destruction of such certificate or the issuance of such new certificate.

Section 6. REPRESENTATION OF SHARES OF OTHER CORPORATIONS. The chairman of the board, the president, or any vice president, or any other person authorized by resolution of the board of directors by any of the foregoing designated officers, is authorized to vote on behalf of the corporation any and all shares of any other corporation or corporations, foreign or domestic, standing in the name of the corporation. The authority herein granted to said officers to vote or represent on behalf of the corporation any and all shares held by the corporation in any other corporation or corporations may be exercised by any such officer in person or by any person authorized to do so by proxy duly executed by said officer.

Section 7. CONSTRUCTION AND DEFINITIONS. Unless the context requires otherwise, the general provisions, rules of construction and definitions in the California General Corporation Law shall govern the construction of the bylaws. Without limiting the generality of the foregoing, the singular number includes the plural, the plural number includes the singular, and the term “person” includes both a corporation and a natural person. All references in these bylaws to the California Corporation Law or sections of the California Corporation Code shall be deemed to be such law or sections as they may be amended and in effect, and, if renumbered, to such renumbered provisions, at the time of any action taken under the bylaws.

ARTICLE IX

AMENDMENTS

Section 1. AMENDMENT BY SHAREHOLDERS. New bylaws may be adopted or these bylaws maybe amended or repealed by the affirmative vote of a majority of the outstanding shares entitled to vote, or by the written assent of shareholders entitled to vote such shares, except as otherwise provided by law or by the articles of incorporation.

Section 2. AMENDMENT BY DIRECTORS. Subject to the rights of the shareholders as provided in Section I of this Article, bylaws other than a bylaw or an amendment thereof changing the authorized number of directors may be adopted, amended or repealed by the board of directors.

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EX-10.1

Exhibit 10.1

CU BANCORP

Audit and Risk Committee Charter

Effective September 17, 2015

Statement of Policy

The Audit and Risk Committee (the “Committee”) will provide assistance to the Board of Directors (the “Board”) in fulfilling their oversight responsibility to the shareholders of CU Bancorp (the “Company”) and shall also function as the Audit Committee of CU Bancorp’s wholly owned subsidiary, California United Bank (the “Bank”) as permitted by the Federal Deposit Insurance Act and implementing regulations (12 USC 1831m(i), 12 CFR 363.1(b)(2)). The purpose of the Committee will be to:

• Oversee the quality and integrity of regulatory and financial accounting, financial statements, financial reporting processes and systems of internal accounting and financial controls

• Oversee the quality of compliance risk management and enterprise risk management;

• Oversee the Company’s compliance with legal and regulatory requirements;

• Oversee the annual independent audit of the Company’s financial statements and internal control over financial reporting, the engagement of the independent registered public accounting firm (“independent registered public accounting firm”) and the evaluation of the independent registered public accounting firm’s qualifications, independence and performance;

• Oversee and retain internal audit and/or outsourced internal audit and review;

• Oversee the performance of the Company’s internal/external audit function and independent registered public accounting firm; and

• Prepare an annual report substantially in compliance with the rules of the Securities and Exchange Commission (the “SEC”) with regard to companies subject to the Sarbanes-Oxley Act, to be included in the Company’s annual proxy statement, if applicable.

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In fulfilling its purpose, it is the responsibility of the Committee to maintain free and open communications between the Committee, independent registered public accounting firm, internal auditors or external auditors performing similar functions, and management of the Company. In discharging its oversight role, the Committee shall be empowered to conduct or authorize investigations into any matter within the scope of its responsibilities. The Committee may employ one or more independent accountants, outside counsel or other experts as it deems appropriate, at the Company’s expense. The Committee shall have full access to the independent registered public accounting firm and all records, facilities or personnel of the Company and the Bank (collectively “CUB”). CUB shall provide for appropriate funding, as determined by the Committee, for payment of compensation to the independent registered public accounting firm, experts hired by the Committee, conduct of the Internal Audit (in-house or outsourced) and Credit Review functions, and necessary or appropriate Committee expenses.

Organization

The Committee shall be appointed by the Board and shall be comprised of at least three members, consisting entirely of non-management directors of the Board, each of whom shall meet the independence and expertise requirements of any stock exchange on which the Company’s securities are traded, including but not limited to the NASDAQ, the Sarbanes-Oxley Act of 2002 and rules promulgated thereunder, the Federal Deposit Insurance Bank Improvement Act of 1991 (FDICIA), and other applicable laws and regulations.

No Committee member shall have participated in the preparation of financial statements of CUB at any time during the past three years.

Each Committee member shall be financially literate (be able to read and understand fundamental financial statements, including a Company’s balance sheet, income statement, and cash flow statement). At least one member of the Committee must have accounting or related financial management expertise and qualify as a “financial expert” as defined by the Securities Exchange Commission and rules promulgated thereunder and also satisfy NASDAQ’s financial sophistication requirement. Members shall not serve on more than two other public audit committees simultaneously. The Committee will meet at least quarterly. The Board shall appoint one of the members of the Audit Committee to serve as Chair. The Chair shall prepare or approve an agenda and distribute it to the members of the Committee in advance of each meeting.

Responsibilities

1) The Committee shall have a clear understanding with management and the independent registered public accounting firm that the independent registered public accountants are ultimately accountable to the Committee, as representatives of the Board and the shareholders. The independent registered public accounting firm will report directly to the Committee.

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2) The Committee shall have the sole authority to hire and fire, to determine the compensation and direct the payment of, and to oversee the independent registered public accounting firm (including the resolution of any disagreements regarding financial reporting). Annually, the Committee will review and select the independent registered public accounting firm for the upcoming fiscal year, subject to the shareholders’ approval. Notwithstanding failure of the shareholders to approve appointment of an independent registered public accounting firm’s selection, the Committee shall have discretion to select such firm for the fiscal year in question. The Committee shall set clear hiring policies for employees or former employees of the independent registered public accounting firm, when applicable, that meet the SEC regulations and the listing standards of any National Securities Exchange (including but not limited to the NASDAQ) on which the Company’s securities are traded or listed.

3) The Committee shall review the independence, performance and qualifications of the independent registered public accounting firm. Among other things, at least annually the Committee shall obtain and review a written report from the independent registered public accounting firm describing: the firm’s internal quality-control procedures; any material issues raised by the most recent internal quality-control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the firm, and any steps taken to deal with any such issues; and all relationships between the independent registered public accounting firm and CUB. The Committee shall discuss the matters included in this written report and the auditors’ independence from management, including any disclosed relationships or services that may impair the objectivity and independence of the independent registered public accounting firm.

4) The Committee shall pre-approve all auditing and permitted non-audit services to be provided by the independent registered public accounting firm, except that the Committee need not pre-approve any permitted non-audit services that meet the requirements of any de minimis exception established by applicable law or regulation. Further, in lieu of pre-approval of specific permitted non-audit services, the engagement may be entered into pursuant to detailed pre-approval policies and procedures established by the Committee, so long as the Committee is promptly informed of the service.

5) With respect to the oversight of the Company’s independent registered public accounting firm the Committee will:

a) Review and evaluate the lead partner of the independent registered public accounting firm team and

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b) Ensure the rotation of the lead (or coordinating) audit partner having primary responsibility for the audit and the audit partner responsible for reviewing the audit as required by law. The Committee shall consider whether, in order to assure continuing auditor independence, it is appropriate to adopt a policy of rotating the independent registered public accounting firm on a regular basis.

6) The Committee shall review the proposal(s) presented by the internal auditors or other parties performing internal audit, credit review (unless delegated to another committee of the Board) and the independent registered public accounting firm, including the overall scope and plans for their respective audits and examinations, including the adequacy of staffing. Also, the Committee will discuss with management, the internal auditors or other parties performing internal audit or credit review and the independent registered public accounting firm the adequacy and effectiveness of the internal control over accounting and financial reporting, including CUB’s processes to assess and manage business and financial risk exposures and relevant compliance programs.

7) The Committee will meet separately and periodically with the internal auditors, or other parties performing internal audit or o credit review, the independent registered public accounting firm and management in the course of performing its oversight functions. The Committee shall review with the independent registered public accounting firm audit problems or difficulties, including any restrictions on the scope of their activities or access to requested information, and management’s response, including any significant disagreements with management.

8) The Committee shall conduct an annual review of the performance of internal audit or other parties performing internal audit and credit review and shall consider this in determining retention of such parties for the following year.

9) The Committee shall oversee all risk management and compliance functions and activities of the company and shall discuss with management, the internal auditors (or such other persons or entities providing such services) and the independent registered public accounting firms the adequacy and effectiveness of CUB’s internal controls regarding financial, accounting, regulatory, and legal compliance and conformity with the Corporation’s Principles of Business Conduct and Ethics, including disclosures of insider and affiliated party transactions.

10) Prior to filing, the Committee shall review and discuss with management and the independent registered public accounting firm the interim financial statements including the Company’s disclosures under “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” to be included in the Company’s Quarterly Report on Form 10-Q. The Committee will discuss the results of the quarterly review by the independent registered public accounting firm and any other matters required to be communicated to the Committee by the independent registered public accounting firm under generally accepted auditing standards. The Chair of this Committee (or in his or her absence, another member of this Committee) may represent the entire Committee for the purpose of this review.

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11) Prior to filing, the Committee shall review and discuss with management and the independent registered public accounting firm the annual financial statements, including the Company’s disclosures under “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” to be included in the Company’s Annual Report on Form 10-K. The scope of this review and discussion shall include: management’s and the independent registered public accounting firm’s judgments about the quality, not just the acceptability, of the accounting principles applied; the reasonableness of significant judgments and the clarity of the disclosures in the financial statements. The Committee will discuss the results of the annual audit and any other matters required to be communicated to the Committee by the independent registered public accounting firm under generally accepted auditing standards. The Committee will recommend to the Board whether the audited financial statements shall be included in the Company’s Form 10-K (or the Annual Report to Shareholders if distributed prior to the filing of the Form 10-K).

12) The Committee shall prepare the audit committee report required by the SEC to be included in the Company’s annual proxy statement, including the review of financial statements with management, review of the statement on Auditing Standards No. 61, as amended (AICPA, Professional Standards, Vol. 1, AU section 380), as adopted by the Public Company Accounting Oversight Board with the independent auditors, and review of the disclosures included in the written communication to the Audit Committee from the independent auditors.

13) This Committee will review disclosures made by the Company’s CEO and CFO during their certification process for the Form 10-K and Form 10-Q about any significant deficiencies in the design or operation of internal controls or material weaknesses therein and any fraud involving management or other employees who have a significant role in the Company’s internal controls. The Committee will also discuss with management its process for performing its required quarterly certifications under Section 302 of the Sarbanes-Oxley Act, as applicable.

14) This Committee will periodically review with management and the independent registered public accounting firm:

(i) All critical accounting policies and practices to be used.

(ii) All alternative treatments of financial information within generally accepted accounting principles that have been discussed with management, ramifications of the use of such alternative disclosures and treatments, and the treatment preferred by the independent registered public accounting firm.

(iii) Other material written communications between the independent registered public accounting firm and management, such as any management letter or schedule of unadjusted differences.

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15) The Committee is responsible for ensuring that the independent registered public accounting firm submits on a periodic basis:

(i) A formal written statement, as required by the Independence Standards Board Statement No. 1, delineating all relationships between the independent registered public accounting firm and the Company and

(ii) A formal written statement of the fees billed by the independent registered public accounting firm for each of the following categories of services: (A) the audit of the Company’s annual financial statements for the most recent fiscal year and the reviews of the financial statements included in the Company’s Quarterly Reports on Form 10-Q for that fiscal year; (B) audit related services, (C) tax compliance fees, and (D) all other services, which may include non-financial statement audit services such as capital or debt issuance and tax planning strategies, benefit plan design and acquisition related issues, among others.

16) The Committee will discuss with management and the independent registered public accounting firm the effect of regulatory and accounting initiatives as well as off-balance sheet structures on the Company’s financial statements.

17) The Committee will discuss with management the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures, including the Company’s risk assessment and risk management policies.

18) The Committee shall discuss earnings press releases, as well as financial information and earnings guidance provided to analysts and rating agencies. These discussions may occur after release of such information to the public. This discussion may be general, and the Committee need not discuss in advance each earnings release or each instance in which the Company may provide earnings guidance.

19) The Committee shall receive a disclosure from the Chief Executive Officer and Chief Financial Officer during their certification process for the 10-K and 10-Q’s about (a) any significant deficiencies and material weaknesses in design or operation of internal controls over financial reporting and (b) any fraud, whether or not material, involving management or other employees who have a significant role in the Company’s internal controls.

20) The Committee shall annually review and discuss with management and the independent registered public accounting firm: (a) management’s assessment of the effectiveness of the Company’s internal control structure and procedures for financial reporting; and (b) the independent auditor’s attestation to and report on, management’s control assessment related to Section 404 of the Sarbanes-Oxley Act of 2002, as applicable.

21) The Committee shall establish procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls, or auditing matters, and the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters.

6

22) The Committee shall report regularly to the Board concerning matters within the scope of its responsibilities.

23) The Committee shall review its own performance at least annually.

24) The Committee shall review this charter at least annually and any revisions adopted by the Committee will be subject to approval by the Board.

Limitation of the Audit Committee’s Role

While the Audit Committee has the responsibilities and powers set forth in this charter, it is not the duty of the Audit Committee to plan or conduct audits or to determine that the Company’s financial statements and disclosures are complete and accurate and are in accordance with generally accepted accounting principles and applicable rules and regulations. These are the responsibilities of management and the independent auditor.

The function of the Committee is oversight. The management of the Company is responsible for the preparation, presentation and integrity of the Company’s financial statements. Management is responsible for maintaining appropriate accounting and financial reporting principles, policies, internal controls and procedures designed to assure compliance with accounting standards and applicable laws and regulations. The independent registered public accounting firm is responsible for planning and carrying out a proper audit of the Company’s annual financial statements, and reviewing of the Company’s quarterly financial statements prior to the filing of each quarterly report on Form 10-Q and other procedures. The members of this Committee are not full-time employees of the Company. They are not, and do not represent themselves to be, accountants or auditors by profession or experts in the fields of accounting or auditing, including with respect to the issue of auditor independence. It is not the duty or responsibility of this Committee or any of its members to conduct “field work” or other types of auditing or accounting reviews or procedures or to set auditor independence standards.

Each member of this Committee is entitled to rely on (i) the integrity of those persons and organizations within and outside the Company from which it receives information, (ii) the accuracy of the financial and other information provided to this Committee by such persons or organizations absent actual knowledge to the contrary (which shall be reported promptly to the Board of Directors) and (iii) representations made by management as to any information technology or other non-audit services provided by the independent registered public accounting firm to CUB.

7

EX-10.2

Exhibit 10.2

Charter for the Compensation, Nominating and Corporate Governance Committee

of the Board of Directors

For CU Bancorp (Ticker Symbol: CUNB)

ADOPTED JULY 30, 2015

1. PURPOSE.

This Committee is appointed by the Board of Directors of CU Bancorp (the “Company) to act at as a Committee of the Board of the Company and its wholly-owned subsidiary, California United Bank, to assist both Boards in discharging their responsibilities, as more completely set forth below, relating to the following:

a. Review and approval of officer compensation plans, policies and programs (not including health and welfare programs available to all employees on a substantially similar basis) as provided for in this Charter.

b. Review and make recommendations to the Board regarding compensation for service on the Boards, any committee of the Boards or any Board leadership position.

c. Assist the Boards by identifying individuals qualified to become members of the Boards,

d. Recommend to the Boards director nominees, including nominees for election at annual meetings of shareholders,

e. Recommend to the Board of the Company the appropriate terms of corporate governance guidelines, codes of conduct, ethics or business principles, codes of ethics for senior financial officers, among other policies and guidelines which the Committee determines necessary and appropriate for consideration and adoption by the Company,

f. Coordinate the Board’s annual review of the Board’s performance, and the performance of various Committees of the Board and recommend the form of such reviews,

g. Produce a compensation committee report on executive compensation for inclusion in the Company’s annual proxy statement if required by applicable law and regulation.

2. MEMBERSHIP AND MEETINGS

This Committee shall be comprised of at least three directors, all of whom shall meet the independence requirements of the NASDAQ Stock Exchange and NASDAQ Rule 5605(a)(2) as “independent directors” and be “Non-Employee Directors” as defined in Rule 16b-3(3)(i) promulgated by the Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934, and “outside directors” as defined for purposes of Section 162(m) of the Internal Revenue Code, as amended and regulations promulgated thereunder. Members shall be appointed by the Board, based on nominations recommended by the Committee. The Board of Directors of the Company shall determine the independence of any director named to serve on the Committee in accordance with applicable NASDAQ rules. In addition to independence as defined above, the Board of Directors must consider all factors specifically relevant to determining whether a Director has a relationship to the Company which is material to that Director’s ability to be independent from management in connection with the duties of a compensation committee member, including but not limited to: 1) the source of compensation of such Director, including any consulting, advisory or other compensatory fee paid by the Company to such Director (other than compensation solely for service as a Director); and 2) whether such director is affiliated with the Company, a subsidiary of the Company or an affiliate of a subsidiary of the Company, or otherwise has a material financial interest with respect to the Company other than as a Director or Shareholder.

Members of this Committee shall be appointed by and may be replaced by the Board at any time.

The Committee or the Board of Directors of the Company may appoint a committee member to act in a leadership (chair) capacity to ensure administrative efficiency and proper committee processes and functioning.

This Committee shall meet not less than four times each year and additional special meetings may be held at any reasonable time in the discretion of the Committee chairman.

The Committee may meet by conference telephone or video conference and may take action by unanimous written consent.

The Committee may invite such members of management to its meetings as it may deem desirable or appropriate, consistent with the maintenance of the confidentiality of compensation discussions when performing such functions.

The Company’s Chief Executive Officer (“CEO”) may not be present during any voting or deliberations of the Committee regarding the CEO’s compensation.

Following each of its meetings the Committee shall deliver a report on the meeting to the Board of Directors, including a description of actions taken by the Committee at the meeting. The Committee shall keep written minutes of its meetings, which minutes shall be maintained with the books and records of the Company.

3. COMMITTEE RESPONSIBILITIES AND AUTHORITY.

This Committee shall also function as the Compensation, Nominating & Corporate Governance Committee of the Company’s wholly owned subsidiary, California United Bank.

COMPENSATION MATTERS

This Committee is responsible with respect to compensation matters as follows:

a. Establish the Company’s overall compensation philosophy, reviewing annually the goals, philosophy and objectives of the Company’s executive compensation plans, ensuring that such plans do not encourage excessive risk-taking and are supported by strong corporate governance.

b. Review industry compensation practices and the Company’s relative competitive compensation positioning with respect to executive officer compensation.

c. Review annually, and have responsibility and authority for approving compensation, including salary, bonus and other perquisites and benefits (other than benefits available to all employees on a substantially equivalent basis), of the CEO; review annually and have responsibility and authority for approving management’s recommendations for compensation, including salary, bonus and other perquisites and benefits (other than benefits available to all employees on a substantially equivalent basis) of, the Chief Financial Officer (the “CFO”), and the three most highly compensated executive officers (as defined by SEC Regulations) other than the CEO and the CFO (collectively, the “Named Executive Officers”).

d. Review upon new hire, and have responsibility and authority for approving or ratifying, the terms of employment, including compensation, title, reporting relationship, authority, duties and responsibilities, of the Named Executive Officers.

e. Review and recommend to the Board of Directors, changes to the compensation and benefits provided to Directors of the Company, including as members of any committees of the Board of Directors or any other Board leadership position.

f. Review, and have responsibility and authority for approving:

(i) The terms of any employment contracts and termination agreements with the Named Executive Officers;

(ii) The terms of any change in control agreements or plans; and

(iii) The recommendations of management to promote any person to an officer position of Senior Vice President or higher;

g. Review, and recommend to the Board of Directors for approval, subject as necessary or appropriate to stockholder approval, stock option plans and other equity based compensation plans that permit payment in or based upon the Company’s stock.

h. Review, consider the risk thereof, and have responsibility and authority for approving:

(i) Other compensation plans (and material amendments thereto) in which the directors, the CEO and any other Named Executive Officers participate (other than benefits available to all employees on a substantially equivalent basis); and

(ii) Other broadly-based compensation plans (and material amendments thereto) which, by their terms, are available to employees or officers or Directors (other than health and welfare plans available to all employees on a substantially equivalent basis);

Except as otherwise specifically provided in this charter, or otherwise requested of, referred to or initiated by this Committee, this Committee shall not be required to review or approve a compensation plan if it is available only to a limited category or number of personnel and provides for aggregate payments not material to the Company.

i. Administer the Company’s stock option plans and other equity based compensation plans that permit payment in or based upon the Company’s stock, which shall include

(i) Reviewing the plans, from time to time as this Committee deems appropriate, including the structure, intended goals and methodology of execution, to determine if the goals and objectives of the plans are being fulfilled;

(ii) Issuing grants under the plans, reviewing management’s recommendations for grants to employees and reviewing grants of non-employee Director awards;

(iii) Interpreting, establishing and amending the provisions of the plans, subject to any limitations set forth in the plans or in any applicable laws and regulations; and

(iv) Reviewing, and recommending to the Board of Directors for approval, subject as necessary or appropriate to stockholder approval, material amendments to the plans.

j. Appoint the administrator of, or the members of the committee which serves as the administrator of, such other compensation plans for which the Company is required or authorized to designate an administrator and administer such other compensation plans for which this Committee is designated as the administrator.

k. Report to the Board of Directors regarding such other matters relating to the compensation of the Company’s officers as may be requested of, referred to or initiated by this Committee.

l. Review and discuss the Compensation Discussion and Analysis (CD&A) required to be included in the Company’s proxy statement and annual report on Form 10-K by the rules and regulations of the SEC with management and, based on such review and discussion, determine whether or not to recommend to the Board that the CD&A be so included.

m. The Committee shall have the resources, funding and authority to discharge its duties and responsibilities, including the authority to retain and terminate any compensation consultant to be used to assist it in the evaluation of director, CEO or senior executive compensation and shall have sole authority to approve the consultant’s fees and other retention terms. The Committee shall also have authority to obtain advice and assistance from internal or external legal, accounting or other advisors. In deciding whether to engage any such third party advisor, the Committee shall take into consideration whether such an advisor is independent under the guidelines or requirements of the SEC and Nasdaq. The Committee may consider the following factors:

1) the provision of other services to the Company by the advisor; 2) the amount of fees received from the Company by the advisor as a percentage of the advisor’s aggregate revenue; 3) the policies and procedures of the advisor that are designed to prevent conflicts of interest; 4) any business or personal relationship of the advisor with a member of the Committee; 5) any business or personal relationship

of the advisor or the person employing the advisor with an executive officer of the Company; and 6) any stock of the Company owned by the advisor. Although the Committee is required to consider these factors, it is free to select or receive advice from an advisor that is not independent. The Committee shall be directly responsible for the appointment, compensation and oversight of the work of any advisor it retains. The Committee may request any officer or employee of the Company or its outside advisors to attend a meeting of the Committee, or to meet with any Committee member or other advisors to the Committee. Relationships with compensation consultants shall be disclosed in accordance with SEC and Nasdaq rules and regulations, and other applicable law.

n. The Committee shall annually review and approve corporate goals and objectives relevant to CEO compensation, evaluate the CEO’s performance in light of those goals and objectives, and determine the CEO’s compensation levels based on this evaluation. In determining the long-term incentive component of CEO compensation, the Committee may consider, among other factors that the Committee determines to be appropriate, the Company’s performance and relative shareholder return, the value of similar incentive awards to CEOs at comparable companies, achievement of goals and strategic initiatives and the awards given to the CEO in past years.

o. The Committee shall annually review and make recommendations to the Board with respect to the compensation of all directors.

p. The Committee shall periodically review the Company’s compensation plans, including incentive-compensation plans and equity-based compensation plans and shall review the Company’s employee compensation practices or policies to assess whether such policies or practices encourage excessive risk taking reasonably likely to have a material adverse effect on the Company.

q. The Committee may form and delegate authority to subcommittees when appropriate.

r. Perform such other functions as required or assigned by law, the Company’s Articles of Incorporation or Bylaws, or the Board.

CORPORATE GOVERNANCE MATTERS

This Committee will act with respect to corporate governance matters as follows:

a. The Committee will oversee and report periodically to the Board with an assessment of the Board’s and its various committee’s performance, to be discussed with the full Board following the completion of such assessment.

b. Annually review the performance of the CEO utilizing methods and analyses determined by the Committee in its reasonable discretion.

c. The Committee will review and reassess the adequacy of any Corporate Governance Guidelines, Codes of Conduct, Code of Ethical Conduct and Business Practices, Codes of Ethics for Senior Financial Officers, and other related business conduct codes, policies or guidelines of the Company and recommend any proposed changes to the Board for approval or recommend that the Board approve the documents.

d. Report to the Board of Directors regarding such other matters relating to the general duties, size and composition of the Board of Directors and its committees as may be requested of, referred to or initiated by this Committee.

e. Review the qualifications and independence of the members of the Board and its various committees as may be required and make any recommendations the Committee members may deem appropriate from time to time concerning any recommended changes in the membership or composition of the Board and its committees as a result.

f. Review and assess the Company’s compliance with corporate governance requirements established by the NASDAQ, or any exchange on which the Company’s shares trade, the requirements established under the Sarbanes-Oxley Act of 2002 and other applicable corporate governance laws and regulations.

g. The Committee shall consider issues involving possible conflicts of interest of directors. The Committee shall have the authority to consider for approval any related party transactions.

h. Consider and report to the Board on succession planning, strength and adequacy of management team and related strategic analysis.

i. Perform such other functions as required or assigned by law, the Company’s Articles of Incorporation or Bylaws, or the Board.

NOMINATING MATTERS

This Committee will act with respect to nomination matters as follows:

a. The Committee will have the sole authority to retain and terminate any search firm to be used to identify director candidates and shall have sole authority to approve the search firm’s fees and other retention terms. The Committee will also have authority to obtain advice and assistance from internal or external legal, accounting or other advisors.

b. When appropriate, the Committee will actively seek individuals qualified to become Board members for recommendation to the Board for appointment or nomination for election as directors. The Committee may also consider candidates proposed by management and shall assess and respond to any candidate duly proposed by the Company’s shareholders.

c. In the case of a vacancy in the office of a director (including a vacancy created by an increase in the size of the Board), the Committee shall recommend to the Board an individual to fill such vacancy either through appointment by the Board or through election by the shareholders.

d. In addition to any criteria set forth in the Company’s Corporate Governance Guidelines, criteria for Board members shall include: their integrity, informed judgment, financial literacy, high performance standards, accomplishments and reputation in the community, knowledge and experience of and in the local communities where the Company operates, experience, skill sets, and ability to commit adequate time to Board and committee matters, and to act on behalf of shareholders. The criteria shall also include a determination of the needs of the Board and of the individual’s personal qualities and characteristics with those of the other directors and potential directors in building a Board that is effective, collegial and responsive to the needs of the Company and its shareholders. The composition of the Board should encompass a broad range of skills, expertise, industry knowledge, diversity of viewpoints, background, and business and community contacts relevant to the Company’s business. Board members are expected to own a meaningful amount of the Company’s securities. The Committee may also consider such other qualifications as the Committee deems appropriate.

e. Consider and recommend to the Board of Directors nominees for election as directors.

f. Perform such other functions as required or assigned by law, the Company’s Articles of Incorporation or Bylaws, or the Board.

4. COMMITTEE REPORTS AND SELF-ASSESSMENT

The Committee shall make regular reports to the Board of Directors. The Committee shall review and reassess the adequacy of this Charter annually and as needed, recommend any proposed changes to the Board for approval. The Committee shall annually review its own performance and report annually on its findings to the Board of Directors.

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER SECTION 302 CERTIFICATION

I, David I. Rainer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of CU Bancorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within the entity, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ DAVID I. RAINER

David I. Rainer

Chief Executive Officer

Date: November 6, 2015

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER SECTION 302 CERTIFICATION

I, Karen A. Schoenbaum, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of CU Bancorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within the entity, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ KAREN A. SCHOENBAUM

Karen A. Schoenbaum

Executive Vice President and Chief Financial Officer

Date: November 6, 2015

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of CU BANCORP (the “Company) on Form 10-Q for the quarter ending September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, David I. Rainer, Chief Executive Officer of the Company, and Karen A. Schoenbaum, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge, based on a review of the Report of the Company, and except as corrected or supplemented in a subsequent report:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 6, 2015	/s/ DAVID I. RAINER
	David I. Rainer
	Chief Executive Officer
Date: November 6, 2015	/s/ KAREN A. SCHOENBAUM
	Karen A. Schoenbaum
	Executive Vice President and Chief Financial Officer

XML

Business Combinations - Fair Value of Loans Pursuant to Accounting Standards for PCI and Non-PCI Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Nov. 30, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Accretable yield	$ (16,787)	$ (18,255)	$ (21,402)		$ (5,599)	$ (6,412)	$ (7,912)
PCI loans
Business Acquisition [Line Items]
Accretable yield	$ (266)	$ (286)	$ (324)		$ (342)	$ (360)	$ (395)
1st Enterprise Bank
Business Acquisition [Line Items]
Contractually required payments				$ 569,853
Less: non-accretable difference				(108)
Cash flows expected to be collected (undiscounted)				569,745
Accretable yield				(16,562)
Fair value of acquired loans				553,183
Cash flows expected to be collected (undiscounted)				569,745
1st Enterprise Bank | PCI loans
Business Acquisition [Line Items]
Contractually required payments				577
Less: non-accretable difference				(108)
Cash flows expected to be collected (undiscounted)				469
Fair value of acquired loans				469
Cash flows expected to be collected (undiscounted)				469
1st Enterprise Bank | Non-PCI loans
Business Acquisition [Line Items]
Contractually required payments				569,276
Cash flows expected to be collected (undiscounted)				569,276
Accretable yield				(16,562)
Fair value of acquired loans				552,714
Cash flows expected to be collected (undiscounted)				$ 569,276

XML

Recorded Investment and Unpaid Principal Balances for Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 3,545		$ 3,545		$ 2,651
Unpaid Principal Balance	5,213		5,213		2,894
Related Allowance	577		577		222
Average Recorded Investment	3,958	$ 5,505	3,739	$ 5,775
Interest Income Recognized				34
Commercial and Industrial
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no specific allowance recorded	2,118		2,118		520
Recorded Investment, With a specific allowance recorded	1,328		1,328		1,394
Unpaid Principal Balance, With no specific allowance recorded	3,629		3,629		609
Unpaid Principal Balance, With a specific allowance recorded	1,479		1,479		1,546
Recorded Investment	3,446		3,446		1,914
Unpaid Principal Balance	5,108		5,108		2,155
Related Allowance	577		577		222
Average Recorded Investment, With no specific allowance recorded	2,118	1,051	1,757	1,035
Interest Income Recognized, With no specific allowance recorded				34
Average Recorded Investment, With a specific allowance recorded	1,328	1,494	1,328	1,533
Interest Income Recognized, With a specific allowance recorded	0	0	0	0
Average Recorded Investment	3,446	2,545	3,085	2,568
Interest Income Recognized				34
Commercial and Other Real Estate
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no specific allowance recorded	99		99		737
Unpaid Principal Balance, With no specific allowance recorded	105		105		739
Recorded Investment	99		99		737
Unpaid Principal Balance	105		105		$ 739
Average Recorded Investment, With no specific allowance recorded	99	2,960	104	3,207
Average Recorded Investment, With a specific allowance recorded	413		550
Interest Income Recognized, With a specific allowance recorded	0	0	0	0
Average Recorded Investment	$ 512	$ 2,960	$ 654	$ 3,207

XML

Loans - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2014 USD ($) Loan	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2014 USD ($) Loan	Dec. 31, 2014 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 0		$ 0
Unfunded loan commitments	765,000,000		765,000,000		$ 720,000,000
Allowance for losses on unfunded loan commitments	561,000		561,000		471,000
Credit purchase impaired loan			3,000,000		2,000,000
Recorded Investment	3,545,000		3,545,000		2,651,000
Unpaid Principal Balance	$ 5,213,000		$ 5,213,000		2,894,000
Interest Income Recognized				$ 34,000
Loans modified or restructured | Loan	3	0	3	1
Payment defaults subsequent to modification on troubled debt restructured loans			$ 0	$ 0
PCI loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	$ 1,916,000		1,916,000		2,385,000
Unpaid Principal Balance	2,972,000		2,972,000		4,285,000
Troubled Debt Restructuring
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	1,879,000		1,879,000		644,000
Unpaid Principal Balance	$ 2,490,000		$ 2,490,000		834,000
Number of Loans | Loan	3		3	1
Interest Income Recognized			$ 0		$ 0
Troubled Debt Restructuring | PCI loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	$ 161,000		161,000
Unpaid Principal Balance	344,000		$ 344,000
Number of Loans | Loan			2
Interest Income Recognized	0	$ 0	$ 0	$ 0
SBA Servicing Asset
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	1,000,000		1,000,000
Loan balances sold	77,000,000		77,000,000
SBA Servicing Asset | PC Bancorp
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	109,000,000		109,000,000
SBA 7a Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	2,000,000		2,000,000
Debt Instrument Remaining Loans | SBA Servicing Asset
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	32,000,000		32,000,000
Debt Instrument Un-guaranteed Loans | SBA Servicing Asset
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	25,000,000		25,000,000
Debt Instrument Guaranteed Loans | SBA Servicing Asset
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	$ 7,000,000		$ 7,000,000

XML

Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, option Granted			0		0	0	0
Stock based compensation expense	$ 0	$ 2,000	$ 1,700	$ 8,000
Total intrinsic value of options exercised	2,000,000	1,000,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Future compensation expense related to stock options			0
Stock-based compensation expense	$ 745,000	$ 443,000	2,000,000	$ 1,000,000
Restricted Stock | Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Future compensation expense related to stock options			$ 3,619,000
Share based compensation, option Granted	40,000		40,000

XML

Additional Information on Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Receivables [Abstract]
Interest foregone on impaired loans	$ 81	$ 72	$ 238	$ 346
Cash collections applied to reduce principal balance	$ 23	$ 18	$ 186	2,889
Interest income recognized on cash collections				$ 34

XML

Balances of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 2,043	$ 2,022
Fair Value Hierarchy for Asset Measured on Non-recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans)	751	1,172
Other real estate owned	1,292	850
Total	2,043	2,022
Significant Unobservable Inputs (Level 3) | Fair Value Hierarchy for Asset Measured on Non-recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans)	751	1,172
Other real estate owned	1,292	850
Total	$ 2,043	$ 2,022

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Composition of Loan Portfolio (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial and Industrial Loans:	$ 556,462	$ 528,517
Loans Secured by Real Estate:
Loans Secured by Real Estate	1,177,244	1,067,847
Other Loans:	37,641	28,359
Total Loans	1,771,347	1,624,723
Owner-Occupied Nonresidential Properties
Loans Secured by Real Estate:
Loans Secured by Real Estate	376,579	339,309
Other Nonresidential Properties
Loans Secured by Real Estate:
Loans Secured by Real Estate	515,402	481,517
Construction, Land Development and Other Land
Loans Secured by Real Estate:
Loans Secured by Real Estate	94,353	72,223
Total Loans	94,353	72,223
1-4 Family Residential Properties
Loans Secured by Real Estate:
Loans Secured by Real Estate	125,635	121,985
Multifamily Residential Properties
Loans Secured by Real Estate:
Loans Secured by Real Estate	$ 65,275	$ 52,813

XML

Stock Options and Restricted Stock (Tables)

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Future Compensation Expense Related to Unvested Restricted Stock Grants

At September 30, 2015, future compensation expense related to unvested restricted stock grants are reflected in the table below (dollars in thousands):

Restricted Stock Expense
Remainder of 2015	$	676
2016		1,879
2017		760
2018		273
2019		31
Thereafter		—
Total	$	3,619

Share Option Activity

The following table summarizes the share option activity under the plans as of the date and for the period indicated:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding stock options at December 31, 2014		1,016,490		$	10.13		1.6	$	11,770
Granted		—
Exercised		(158,315	)
Forfeited		(5,000	)
Expired		—
Outstanding stock options at September 30, 2015		853,175		$	10.26		0.9	$	10,467
Exercisable options at September 30, 2015		853,175		$	10.26		0.9	$	10,467
Unvested options at September 30, 2015		—

Restricted Stock Activity

The following table summarizes the restricted stock activity under the Equity Plan for the period indicated:

	Number of Shares			Weighted-Average Grant-Date Fair Value per Share
Restricted Stock:
Unvested at December 31, 2014		309,506		$	16.41
Granted		77,800			20.95
Vested		(99,750	)		13.42
Cancelled and forfeited		(9,175	)		16.50
Unvested at September 30, 2015		278,381		$	18.74

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Significant Unobservable Inputs Used in Fair Value Measurements for Level 3 Assets and Liabilities Measured at Fair Value on Recurring or Non-Recurring Basis (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets, fair value	$ 2,043	$ 2,022
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Valuation Model and/or Factors	Estimated selling costs
Estimated selling costs	16.00%	15.00%
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off | Credit Loss Estimate of Aged Accounts Receivable Collateral
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets, fair value	$ 751	$ 1,172
Valuation Model and/or Factors	Credit loss factors on aging of accounts receivable collateral
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off | Credit Loss Estimate of Aged Accounts Receivable Collateral | Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Credit loss factors on aging of accounts receivable collateral	20.00%	10.00%
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off | Credit Loss Estimate of Aged Accounts Receivable Collateral | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Credit loss factors on aging of accounts receivable collateral	80.00%	80.00%
Collateral Dependent Impaired Loans With Specific Valuation Allowance And Or Partial Charge-Off | Commercial real estate appraisal; Executed sale contract
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Estimated selling costs	6.00%
Other Real Estate Owned | Commercial real estate appraisal; Executed sale contract
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets, fair value	$ 1,292
Valuation Model and/or Factors	Sales approach and Estimated selling costs
Other Real Estate Owned | Residential Real Estate Appraisal
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets, fair value		$ 850
Valuation Model and/or Factors	Sales approach and Estimated selling costs
Estimated selling costs		6.00%

XML

Shareholders' Equity - Additional Information (Detail) - USD ($)		9 Months Ended	10 Months Ended
	Nov. 30, 2014	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Issued common stock increased		187,080
Common stock, shares issued		16,870,936	16,870,936	16,683,856
Shares issued during period upon exercise of stock options		158,315
Total exercise value of employee stock options		$ 1,434,000
Share based compensation, restricted shares issued		68,625
Share based compensation, unvested restricted shares cancelled		39,860
Preferred stock, liquidation preference per share	$ 1,000
Carrying value of preferred stock		$ 16,739,000	$ 16,739,000	$ 16,004,000
1st Enterprise Bank
Class of Stock [Line Items]
Number of Non-Cumulative Perpetual Preferred Stock, Series D converted to Non-Cumulative Perpetual Preferred Stock, Series A	16,400
Preferred stock estimated period		4 years
Preferred stock net discount		$ 479,000
Preferred stock accretion on net discount		818,000	735,000
Carrying value of preferred stock		16,700,000	16,700,000
Preferred stock value, gross		16,400,000	$ 16,400,000
Preferred stock value net premium		$ 300,000
1st Enterprise Bank | Preferred Stock
Class of Stock [Line Items]
Fair value of preferred stock	$ 15,900,000
1st Enterprise Bank | SBLF
Class of Stock [Line Items]
Preferred stock issued	16,400
Restricted Stock
Class of Stock [Line Items]
Number of shares granted		77,800
Share based compensation, unvested restricted shares cancelled		9,175
Restricted Stock | Directors And Employees
Class of Stock [Line Items]
Number of shares granted		77,800
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Share based compensation, unvested restricted shares cancelled		9,175
Share based compensation, restricted shares value		$ 856,000

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Pre and Post Modification Recorded Investment in TDR Loans (Detail) - Troubled Debt Restructuring $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2014 USD ($) Loan
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan	3	3	1
Pre- Modification Recorded Investment	$ 1,335	$ 1,335	$ 224
Post- Modification Recorded Investment	$ 1,335	$ 1,335	$ 224
Commercial and Industrial
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan	3	3	1
Pre- Modification Recorded Investment	$ 1,335	$ 1,335	$ 224
Post- Modification Recorded Investment	$ 1,335	$ 1,335	$ 224

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Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available-for-sale	$ 256,085	$ 226,962
Interest Rate Swap Contracts	1,298	719
Interest Rate Swap Contracts	3,386	3,515
Interest rate swap contracts fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap Contracts	1,298	719
Interest Rate Swap Contracts	3,386	3,515
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available-for-sale	256,085	226,962
Significant Other Observable Inputs (Level 2) | Interest rate swap contracts fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap Contracts	1,298	719
Interest Rate Swap Contracts	$ 3,386	$ 3,515

XML

Fair Value of Assets and Liabilities - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on recurring basis	$ 0		$ 0		$ 0
Financial liabilities measured at fair value on recurring basis	0		0		$ 0
Fair Value Hierarchy for Assets Measured on Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Transfer of assets in or out of Level 3	0	$ 0	0	$ 0
Fair value assets transfer from level 1 to level 2	0	0	0	0
Fair value assets transfer from level 2 to level 1	0	$ 0	0	$ 0
Fair Value Hierarchy for Asset Measured on Non-recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets transfer from level 1 to level 2	0		0
Fair value assets transfer from level 2 to level 1	0		0
Transfer of assets in or out of Level 3	$ 0		$ 0

XML

Share Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Shares
Exercised, Shares	(158,315)
Equity Plan | Stock Options
Shares
Outstanding stock options at beginning, Shares	1,016,490
Granted, Shares	0
Exercised, Shares	(158,315)
Forfeited, Shares	(5,000)
Expired, Shares	0
Outstanding stock options at ending, Shares	853,175	1,016,490
Exercisable options at September 30, 2015, Shares	853,175
Unvested options at September 30, 2015, Shares	0
Weighted Average Exercise Price
Outstanding stock options at beginning, Weighted Average Exercise Price	$ 10.13
Granted, Weighted Average Exercise Price	0
Exercised, Weighted Average Exercise Price	0
Forfeited, Weighted Average Exercise Price	0
Expired, Weighted Average Exercise Price	0
Outstanding stock options at end, Weighted Average Exercise Price	10.26	$ 10.13
Exercisable options at end, Weighted Average Exercise Price	10.26
Unvested options at end, Weighted Average Exercise Price	$ 0
Weighted Average Remaining Contractual Term
Outstanding stock options, Weighted Average Remaining Contractual Term		1 year 7 months 6 days
Exercisable options at end, Weighted Average Remaining Contractual Term	10 months 24 days
Unvested options at end, Weighted Average Remaining Contractual Term	10 months 24 days
Aggregate Intrinsic Value
Outstanding stock options at beginning, Aggregate Intrinsic Value	$ 11,770
Outstanding stock options at end, Aggregate Intrinsic Value	10,467	$ 11,770
Exercisable options at end, Aggregate Intrinsic Value	10,467
Unvested options at end, Aggregate Intrinsic Value	$ 0

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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value of Loans Pursuant to Accounting Standards for PCI and Non-PCI Loans

The following table presents the fair value of loans pursuant to accounting standards for PCI and non-PCI loans as of the 1^st Enterprise acquisition date (dollars in thousands):

	November 30, 2014
	PCI loans			Non-PCI loans			Total
Contractually required payments	$	577		$	569,276		$	569,853
Less: non-accretable difference		(108	)		—			(108	)
Cash flows expected to be collected (undiscounted)		469			569,276			569,745
Accretable yield		—			(16,562	)		(16,562	)
Fair value of acquired loans	$	469		$	552,714		$	553,183

1st Enterprise Bank

Fair Values of Consideration Paid, Assets Acquired and Liabilities Assumed as of Date of Acquisition

In connection with the merger, the consideration paid, the assets acquired, and the liabilities assumed were recorded at fair value on the date of acquisition, as summarized in the following table (dollars in thousands):

	November 30, 2014
Assets acquired:
Cash and due from banks	$	8,739
Interest earning deposits in other financial institutions		11,554
Investment securities available-for-sale		117,407
Investment securities held-to-maturity		47,457
Loans		553,183
Premises and equipment, net		1,830
Deferred tax asset		5,682
Goodwill		51,658
Core deposit and leasehold right intangibles		7,533
Bank owned life insurance		16,871
Accrued interest receivable and other assets		11,583
Total assets acquired	$	833,497
Liabilities assumed:
Deposits	$	703,358
Accrued interest payable and other liabilities		1,856
Total liabilities assumed	$	705,214
Total consideration paid:
CU Bancorp common stock issued	$	102,712
CU Bancorp preferred stock issued		15,921
Fair value of 1st Enterprise stock options		9,561
Cash paid to a dissenter shareholder		87
Cash in lieu of fractional shares paid to 1st Enterprise shareholders		2
Total Consideration	$	128,283

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Changes in Allowance for Loan Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan loss at beginning of period	$ 14,124	$ 11,284	$ 12,610	$ 10,603
Provision for loan losses	705	35	2,831	518
Net (charge-offs) recoveries:
Charge-offs	(42)	(8)	(933)	(165)
Recoveries	178	37	457	392
Net (charge-offs) recoveries	136	29	(476)	227
Allowance for loan loss at end of period	14,965	11,348	14,965	11,348
Commercial and Industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan loss at beginning of period	6,244	5,385	5,864	5,534
Provision for loan losses	181	333	1,176	25
Net (charge-offs) recoveries:
Charge-offs			(891)	(93)
Recoveries	177	36	453	288
Net (charge-offs) recoveries	177	36	(438)	195
Allowance for loan loss at end of period	6,602	5,754	6,602	5,754
Construction, Land Development and Other Land
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan loss at beginning of period	1,607	1,422	1,684	1,120
Provision for loan losses	371	(205)	294	97
Net (charge-offs) recoveries:
Allowance for loan loss at end of period	1,978	1,217	1,978	1,217
Commercial and Other Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan loss at beginning of period	5,799	4,426	4,802	3,886
Provision for loan losses	143	(429)	1,137	72
Net (charge-offs) recoveries:
Charge-offs	(42)	(8)	(42)	(72)
Recoveries	1	1	4	104
Net (charge-offs) recoveries	(41)	(7)	(38)	32
Allowance for loan loss at end of period	5,901	3,990	5,901	3,990
Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan loss at beginning of period	474	51	260	63
Provision for loan losses	10	336	224	324
Net (charge-offs) recoveries:
Allowance for loan loss at end of period	$ 484	$ 387	$ 484	$ 387

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Amortized Cost, Gross Unrealized Gains and Losses, and Fair Values of Investment Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	$ 255,631	$ 226,634
Available-for-sale Securities, Gross Unrealized Gains	1,616	1,573
Available-for-sale Securities, Gross Unrealized Losses	1,162	1,245
Fair Value	256,085	226,962
Held-to-maturity Securities, Amortized Cost	43,269	47,147
Held-to-maturity Securities, Gross Unrealized Gain	224	169
Held-to-maturity Securities, Gross Unrealized Losses	71	157
Fair Value	43,422	47,159
Available-for-sale Securities and Held-to-maturity Securities, Amortized Cost	298,900	273,781
Available-for-sale Securities and Held-to-maturity Securities, Gross Unrealized Gain	1,840	1,742
Available-for-sale Securities and Held-to-maturity Securities, Gross Unrealized Losses	1,233	1,402
Available-for-sale Securities and Held-to-maturity Securities, Fair Value	299,507	274,121
Municipal Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	1,017	1,039
Available-for-sale Securities, Gross Unrealized Gains	3	11
Fair Value	1,020	1,050
Held-to-maturity Securities, Amortized Cost	43,269	47,147
Held-to-maturity Securities, Gross Unrealized Gain	224	169
Held-to-maturity Securities, Gross Unrealized Losses	71	157
Fair Value	43,422	47,159
U.S. Govt Agency - GNMA Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	32,607	29,364
Available-for-sale Securities, Gross Unrealized Gains	243	255
Available-for-sale Securities, Gross Unrealized Losses	252	277
Fair Value	32,598	29,342
Corporate Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	4,023	4,043
Available-for-sale Securities, Gross Unrealized Gains	29	77
Fair Value	4,052	4,120
Asset Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	8,113	8,711
Available-for-sale Securities, Gross Unrealized Gains		1
Available-for-sale Securities, Gross Unrealized Losses	254	40
Fair Value	7,859	8,672
U. S. Treasury Notes
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	35,047	20,031
Available-for-sale Securities, Gross Unrealized Gains	50
Available-for-sale Securities, Gross Unrealized Losses		6
Fair Value	35,097	20,025
U.S. Govt Agency and Sponsored Agency - Note Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	1,018	2,036
Available-for-sale Securities, Gross Unrealized Gains	4	2
Fair Value	1,022	2,038
U.S. Govt Agency - SBA Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	76,238	54,062
Available-for-sale Securities, Gross Unrealized Gains	665	770
Available-for-sale Securities, Gross Unrealized Losses	371	345
Fair Value	76,532	54,487
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	97,568	107,348
Available-for-sale Securities, Gross Unrealized Gains	622	457
Available-for-sale Securities, Gross Unrealized Losses	285	577
Fair Value	$ 97,905	$ 107,228

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Commitments and Contingencies - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Other Commitments [Line Items]
Legal proceedings against the company	$ 0
Commitments to Extend Credit
Other Commitments [Line Items]
Financial instruments with off balance sheet risk	765,000,000	$ 720,000,000
Commitments to Extend Credit | Standby Letters of Credit
Other Commitments [Line Items]
Financial instruments with off balance sheet risk	$ 70,000,000	$ 57,000,000

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Business Combinations - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended
	Nov. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Merger expenses		$ 146,000	$ 631,000	$ 498,000	$ 1,128,000
1st Enterprise Bank
Business Acquisition [Line Items]
Merger date	Jun. 02, 2014
Effective date of acquisition				Nov. 30, 2014
Share received in exchange for each share	1.3450
Common stock issued	5,000,000
Fair value of common stock issued as part of consideration paid	$ 103,000,000
Market price of common stock	$ 19.60
Number of Non-Cumulative Perpetual Preferred Stock, Series D converted to Non-Cumulative Perpetual Preferred Stock, Series A	16,400
Merger expenses		$ 146,000	$ 631,000	$ 498,000	$ 1,000,000
Other intangible assets, amortization period				10 years

XML

Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial and Industrial	$ 556,462	$ 528,517
Construction, Land Development and Other Land	94,353	72,223
Commercial and Other Real Estate	1,082,891	995,624
Other	37,641	28,359
Total Loans	1,771,347	1,624,723
Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial and Industrial	527,311	502,624
Construction, Land Development and Other Land	94,353	72,223
Commercial and Other Real Estate	1,054,807	977,525
Other	37,640	28,358
Total Loans	1,714,111	1,580,730
Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial and Industrial	11,862	8,738
Commercial and Other Real Estate	8,103	4,878
Total Loans	19,965	13,616
Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial and Industrial	17,289	17,155
Commercial and Other Real Estate	19,981	13,221
Other	1	1
Total Loans	$ 37,271	$ 30,377

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Effect of All Derivative Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative [Line Items]
Net increase (decrease) in other non-interest income	$ (25)	$ 17	$ (74)	$ (26)
Net increase (decrease) in interest income on loans	58	(60)	16	(152)
Derivatives not Designated as Hedging Instruments | Loans, net
Derivative [Line Items]
Increase in fair value of interest rate swap contracts	41	86	124	179
Payments on interest rate swap contracts on loans	(66)	(69)	(198)	(205)
Derivatives not Designated as Hedging Instruments | Subordinated debentures
Derivative [Line Items]
Increase in fair value of interest rate swap contracts	142	361	583	663
Derivatives Designated as Hedging Instruments | Loans, net
Derivative [Line Items]
Increase (decrease) in fair value of hedged loans	191	(104)	279	135
Payments on interest rate swap contracts on loans	$ (275)	$ (317)	$ (846)	$ (950)

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Qualified Affordable Housing Project Investments - Additional Information (Detail) - Low Income Housing Tax Credits - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Investment Holdings [Line Items]
Investment cost	$ 3,800,000		$ 4,200,000
Investment in funding obligation	1,000,000		$ 3,000,000
Tax credits and other tax benefits	436,000	$ 443,000
Amortization expense	$ 343,000	$ 348,000

XML

Company's Loan Portfolio Stratified by Industry Concentration of Borrower (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Loans Receivable [Line Items]
Total Loans	$ 1,771,347	$ 1,624,723
Real Estate
Loans Receivable [Line Items]
Total Loans	811,868	744,663
Manufacturing
Loans Receivable [Line Items]
Total Loans	167,152	161,233
Wholesale
Loans Receivable [Line Items]
Total Loans	129,952	124,336
Construction
Loans Receivable [Line Items]
Total Loans	154,085	113,763
Finance
Loans Receivable [Line Items]
Total Loans	113,956	96,074
Hotel/Lodging
Loans Receivable [Line Items]
Total Loans	101,239	88,269
Professional Services
Loans Receivable [Line Items]
Total Loans	53,147	64,215
Other Services
Loans Receivable [Line Items]
Total Loans	47,041	45,781
Healthcare
Loans Receivable [Line Items]
Total Loans	47,359	43,917
Retail
Loans Receivable [Line Items]
Total Loans	36,777	35,503
Administrative Management
Loans Receivable [Line Items]
Total Loans	26,164	28,016
Restaurant/Food Service
Loans Receivable [Line Items]
Total Loans	31,884	24,525
Transportation
Loans Receivable [Line Items]
Total Loans	21,596	18,158
Information
Loans Receivable [Line Items]
Total Loans	8,756	15,457
Education
Loans Receivable [Line Items]
Total Loans	9,192	10,253
Entertainment
Loans Receivable [Line Items]
Total Loans	5,610	8,284
Other
Loans Receivable [Line Items]
Total Loans	$ 5,569	$ 2,276

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Basis of Financial Statement Presentation

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Financial Statement Presentation

Note 1 - Basis of Financial Statement Presentation

CU Bancorp (the “Company”) is a bank holding company whose operating subsidiary is California United Bank. CU Bancorp was established to facilitate the reorganization and merger of Premier Commercial Bank, N.A. into California United Bank, which took place after the close of business on July 31, 2012. As a bank holding company, CU Bancorp is subject to regulation of the Federal Reserve Board (“FRB”). The term “Company”, as used throughout this document, refers to the consolidated financial statements of CU Bancorp and California United Bank.

California United Bank (the “Bank”) is a full-service commercial business bank offering a broad range of banking products and services including: deposit services, lending and cash management to small and medium-sized businesses, to non-profit organizations, to business principals and entrepreneurs, to the professional community, including attorneys, certified public accountants, financial advisors, healthcare providers and investors. The Bank opened for business in 2005, with its current headquarters office located in Los Angeles, California. As a state chartered non-member bank, the Bank is subject to regulation by the California Department of Business Oversight, (the “DBO”) and the Federal Deposit Insurance Corporation (“FDIC”). The deposits of the Bank are insured by the FDIC to the maximum amount allowed by law.

The consolidated financial statements include the accounts of the Company and the Bank. Significant intercompany items have been eliminated in consolidation. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission.

CU Bancorp is the common shareholder of Premier Commercial Statutory Trust I, Premier Commercial Statutory Trust II, and Premier Commercial Statutory Trust III, entities which were acquired in the merger with Premier Commercial Bancorp (“PC Bancorp”). These trusts were established for the sole purpose of issuing trust preferred securities and do not meet the criteria for consolidation in accordance with Accounting Standards Codification (“ASC”) 810, Consolidations. For more detail, see Note 9 –Borrowings and Subordinated Debentures.

Certain information and footnote disclosures presented in the annual consolidated financial statements are not included in the interim consolidated financial statements. Accordingly, the accompanying unaudited interim consolidated financial statements should be read in conjunction with our 2014 Annual Report on Form 10-K. In the opinion of management, the accompanying consolidated financial statements contain all necessary adjustments of a normal recurring nature, to present fairly the consolidated financial position of the Company and the results of its operations for the interim periods presented.

Use of Estimates in the Preparation of Financial Statements

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In addition, these accounting principles require the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements.

Estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan loss and various assets and liabilities measured at fair value. While management uses the most current available information to recognize losses on loans, future additions to the allowance for loan loss may be necessary based on, among other factors, changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan loss. Regulatory agencies may require the Company to recognize additions to the allowance for loan loss based on their judgment about information available to them at the time of their examination.

Business Segments

The Company is organized and operated as a single reporting segment, principally engaged in commercial business banking. The Company conducts its lending and deposit operations through ten full service branch offices located in Los Angeles, Orange, Ventura and San Bernardino counties.

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Borrowings and Subordinated Debentures - Additional Information (Detail)		9 Months Ended
	May. 19, 2010 USD ($)	Sep. 30, 2015 USD ($) Debentures	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Securities with a fair value		$ 49,000,000		$ 32,300,000
Subordinated debentures		$ 12,372,000
Issuance maturity period from its date of issue		30 years
Number of debentures | Debentures		3
Trust preferred securities tier one capital		25.00%
Maximum proceeds from issuance of trust preferred securities	$ 15,000,000,000
Proceeds from issuance of trust preferred securities	12,000,000
PC Bancorp
Debt Instrument [Line Items]
Subordinated debentures		$ 12,400,000
Federal Home Loan Bank of San Francisco
Debt Instrument [Line Items]
Credit facility, percentage of Bank's total assets			25.00%
Credit facility, maximum borrowing capacity			$ 618,000,000
Credit facility, loan collateral pledge		795,000,000
Credit facility borrowings collateral amount		526,000,000
Investment securities pledged with FHLB		20,000,000
Outstanding advances (borrowings) with FHLB		0		$ 0
Junior Subordinated Debt
Debt Instrument [Line Items]
Proceeds from issuance of debt securities	$ 12,400,000
Trust I
Debt Instrument [Line Items]
Subordinated debentures		6,186,000
Prepayment penalties		0
Trust II
Debt Instrument [Line Items]
Subordinated debentures		3,093,000
Prepayment penalties		0
Trust III
Debt Instrument [Line Items]
Subordinated debentures		3,093,000
Prepayment penalties		$ 0
Subordinated Debentures
Debt Instrument [Line Items]
Subordinate debentures, interest payment terms		The Company has the right, assuming no default has occurred, to defer payments of interest on the subordinated debentures at any time for a period not to exceed 20 consecutive quarters.
Minimum
Debt Instrument [Line Items]
Repurchase maturity date		1 day
Maximum
Debt Instrument [Line Items]
Repurchase maturity date		180 days

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Investment Securities - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
Proceeds from sales of available-for-sale investment securities	$ 0		$ 0	$ 0	$ 0
Securities classified as other-than-temporarily impaired	0			0		$ 0
Company's investment in the common stock of the FHLB	8,000,000			8,000,000		8,000,000
Impairment loss from investments in FHLB				0
Special dividend received from FHLB		$ 296,000
Securities Sold under Agreements to Repurchase
Schedule of Trading Securities and Other Trading Assets [Line Items]
Market value of securities pledged to secure securities sold under agreements to repurchase	$ 203,000,000			$ 203,000,000		$ 148,800,000

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Loans (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Composition of Loan Portfolio

The following table presents the composition of the Company’s loan portfolio as of the dates indicated (dollars in thousands):

	September 30, 2015		December 31, 2014
Commercial and Industrial Loans:	$	556,462	$	528,517
Loans Secured by Real Estate:
Owner-Occupied Nonresidential Properties		376,579		339,309
Other Nonresidential Properties		515,402		481,517
Construction, Land Development and Other Land		94,353		72,223
1-4 Family Residential Properties		125,635		121,985
Multifamily Residential Properties		65,275		52,813
Total Loans Secured by Real Estate		1,177,244		1,067,847
Other Loans:		37,641		28,359
Total Loans	$	1,771,347	$	1,624,723

Company's Loan Portfolio Stratified by Industry Concentration of Borrower

The following table is a breakout of the Company’s loan portfolio stratified by the industry concentration of the borrower by their respective NAICS code as of the dates indicated (dollars in thousands):

	September 30, 2015		December 31, 2014
Real Estate	$	811,868	$	744,663
Manufacturing		167,152		161,233
Wholesale		129,952		124,336
Construction		154,085		113,763
Finance		113,956		96,074
Hotel/Lodging		101,239		88,269
Professional Services		53,147		64,215
Other Services		47,041		45,781
Healthcare		47,359		43,917
Retail		36,777		35,503
Administrative Management		26,164		28,016
Restaurant/Food Service		31,884		24,525
Transportation		21,596		18,158
Information		8,756		15,457
Education		9,192		10,253
Entertainment		5,610		8,284
Other		5,569		2,276
Total	$	1,771,347	$	1,624,723

Summary of Activity for Allowance for Loan Loss

The following table is a summary of the activity for the allowance for loan loss for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Allowance for loan loss at beginning of period	$	14,124		$	11,284		$	12,610		$	10,603
Provision for loan losses		705			35			2,831			518
Net (charge-offs) recoveries:
Charge-offs		(42	)		(8	)		(933	)		(165	)
Recoveries		178			37			457			392
Net (charge-offs) recoveries		136			29			(476	)		227
Allowance for loan loss at end of period	$	14,965		$	11,348		$	14,965		$	11,348
Net (charge-offs) recoveries to average loans		0.01	%		0.00	%		(0.03	)%		(0.02	)%

	September 30, 2015			December 31, 2014
Allowance for loan loss to total loans		0.84	%		0.78	%
Allowance for loan loss to total loans accounted for at historical cost, which excludes loans and the related allowance for loans acquired through acquisition		1.30	%		1.39	%

Changes in Allowance for Loan Loss

The following tables present, by portfolio segment, the changes in the allowance for loan loss and the recorded investment in loans as of the dates and for the periods indicated (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land			Commercial and Other Real Estate			Other		Total
Three Months Ended September 30, 2015
Allowance for loan loss – Beginning balance	$	6,244	$	1,607		$	5,799		$	474	$	14,124
Provision for loan losses		181		371			143			10		705
Net (charge-offs) recoveries:
Charge-offs		—		—			(42	)		—		(42	)
Recoveries		177		—			1			—		178
Net (charge offs) recoveries		177		—			(41	)		—		136
Ending balance	$	6,602	$	1,978		$	5,901		$	484	$	14,965
Three Months Ended September 30, 2014
Allowance for loan loss – Beginning balance	$	5,385	$	1,422		$	4,426		$	51	$	11,284
Provision for loan losses		333		(205	)		(429	)		336		35
Net (charge-offs) recoveries:
Charge-offs		—		—			(8	)		—		(8	)
Recoveries		36		—			1			—		37
Net (charge-offs) recoveries		36		—			(7	)		—		29
Ending balance	$	5,754	$	1,217		$	3,990		$	387	$	11,348

	Commercial and Industrial			Construction, Land Development and Other Land		Commercial and Other Real Estate			Other		Total
Nine Months Ended September 30, 2015
Allowance for loan loss – Beginning balance	$	5,864		$	1,684	$	4,802		$	260	$	12,610
Provision for loan losses		1,176			294		1,137			224		2,831
Net (charge-offs) recoveries:
Charge-offs		(891	)		—		(42	)		—		(933	)
Recoveries		453			—		4			—		457
Net (charge-offs) recoveries		(438	)		—		(38	)		—		(476	)
Ending balance	$	6,602		$	1,978	$	5,901		$	484	$	14,965
Nine Months Ended September 30, 2014
Allowance for loan loss – Beginning balance	$	5,534		$	1,120	$	3,886		$	63	$	10,603
Provision for loan losses		25			97		72			324		518
Net (charge-offs) recoveries:
Charge-offs		(93	)		—		(72	)		—		(165	)
Recoveries		288			—		104			—		392
Net (charge-offs) recoveries		195			—		32			—		227
Ending balance	$	5,754		$	1,217	$	3,990		$	387	$	11,348

Schedule Represents both Allowance for Loan Loss and Associated Loan Balance Classified by Loan Portfolio Segment and by Credit Evaluation Methodology

The following tables present both the allowance for loan loss and the associated loan balance classified by loan portfolio segment and by credit evaluation methodology (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
September 30, 2015
Allowance for loan loss:
Individually evaluated for impairment	$	577	$	—	$	—	$	—	$	577
Collectively evaluated for impairment		6,025		1,978		5,901		484		14,388
Purchased credit impaired (loans acquired with deteriorated credit quality)		—		—		—		—		—
Total Allowance for Loan Loss	$	6,602	$	1,978	$	5,901	$	484	$	14,965
Loans receivable:
Individually evaluated for impairment	$	3,446	$	—	$	99	$	—	$	3,545
Collectively evaluated for impairment		552,634		94,353		1,081,258		37,641		1,765,886
Purchased credit impaired (loans acquired with deteriorated credit quality)		382		—		1,534		—		1,916
Total Loans Receivable	$	556,462	$	94,353	$	1,082,891	$	37,641	$	1,771,347

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
December 31, 2014
Allowance for loan loss:
Individually evaluated for impairment	$	222	$	—	$	—	$	—	$	222
Collectively evaluated for impairment		5,642		1,684		4,802		260		12,388
Purchased credit impaired (loans acquired with deteriorated credit quality)		—		—		—		—		—
Total Allowance for Loan Loss	$	5,864	$	1,684	$	4,802	$	260	$	12,610
Loans receivable:
Individually evaluated for impairment	$	1,914	$	—	$	737	$	—	$	2,651
Collectively evaluated for impairment		525,910		72,223		993,195		28,359		1,619,687
Purchased credit impaired (loans acquired with deteriorated credit quality)		693		—		1,692		—		2,385
Total Loans Receivable	$	528,517	$	72,223	$	995,624	$	28,359	$	1,624,723

Risk Category of Loans by Class of Loans

The following tables present the risk category of loans by class of loans based on the most recent internal loan classification as of the dates indicated (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
September 30, 2015
Pass	$	527,311	$	94,353	$	1,054,807	$	37,640	$	1,714,111
Special Mention		11,862		—		8,103		—		19,965
Substandard		17,289		—		19,981		1		37,271
Doubtful		—		—		—		—		—
Total	$	556,462	$	94,353	$	1,082,891	$	37,641	$	1,771,347
December 31, 2014
Pass	$	502,624	$	72,223	$	977,525	$	28,358	$	1,580,730
Special Mention		8,738		—		4,878		—		13,616
Substandard		17,155		—		13,221		1		30,377
Doubtful		—		—		—		—		—
Total	$	528,517	$	72,223	$	995,624	$	28,359	$	1,624,723

Aging Analysis of Recorded Investment

The following tables present an aging analysis of the recorded investment of past due loans and non-accrual loans as of the dates indicated (dollars in thousands):

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Accruing		Total Past Due and Accruing		Total Non- Accrual		Current		Total Loans
September 30, 2015
Commercial and Industrial	$	85	$	11	$	—	$	96	$	3,826	$	552,540	$	556,462
Construction, Land Development and Other Land		—		—		—		—		—		94,353		94,353
Commercial and Other Real Estate		—		391		—		391		478		1,082,022		1,082,891
Other		—		—		—		—		—		37,641		37,641
Total	$	85	$	402	$	—	$	487	$	4,304	$	1,766,556	$	1,771,347

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Accruing		Total Past Due and Accruing		Total Non- Accrual		Current		Total Loans
December 31, 2014
Commercial and Industrial	$	192	$	233	$	—	$	425	$	2,604	$	525,488	$	528,517
Construction, Land Development and Other Land		—		—		—		—		—		72,223		72,223
Commercial and Other Real Estate		354		—		—		354		1,305		993,965		995,624
Other		—		—		—		—		—		28,359		28,359
Total	$	546	$	233	$	—	$	779	$	3,909	$	1,620,035	$	1,624,723

Recorded Investment and Unpaid Principal Balances for Impaired Loans

The following tables present, by loan category, the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, for the dates and periods indicated (dollars in thousands). This table excludes purchased credit impaired loans (loans acquired in acquisitions with deteriorated credit quality) of $3 million and $2 million at September 30, 2015 and December 31, 2014, respectively.

	September 30, 2015						December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no specific allowance recorded:
Commercial and Industrial	$	2,118	$	3,629	$	—	$	520	$	609	$	—
Commercial and Other Real Estate		99		105		—		737		739		—
						—
With a specific allowance recorded:
Commercial and Industrial		1,328		1,479		577		1,394		1,546		222
Total
Commercial and Industrial		3,446		5,108		577		1,914		2,155		222
Commercial and Other Real Estate		99		105		—		737		739		—
Total	$	3,545	$	5,213	$	577	$	2,651	$	2,894	$	222

	Three Months Ended September 30,								Nine Months Ended September 30,
	2015				2014				2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no specific allowance recorded:
Commercial and Industrial	$	2,118	$	—	$	1,051	$	—	$	1,757	$	—	$	1,035	$	34
Commercial and Other Real Estate		99		—		2,960		—		104		—		3,207		—
With a specific allowance recorded:
Commercial and Industrial		1,328		—		1,494		—		1,328		—		1,533		—
Commercial and Other Real Estate		413				—		—		550				—		—
Total:
Commercial and Industrial		3,446		—		2,545		—		3,085		—		2,568		34
Commercial and Other Real Estate		512		—		2,960		—		654		—		3,207		—
Total	$	3,958	$	—	$	5,505	$	—	$	3,739	$	—	$	5,775	$	34

Additional Information on Impaired Loans

The following is a summary of additional information pertaining to impaired loans for the periods indicated (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Interest foregone on impaired loans	$	81	$	72	$	238	$	346
Cash collections applied to reduce principal balance	$	23	$	18	$	186	$	2,889
Interest income recognized on cash collections	$	—	$	—	$	—	$	34

Recorded Investment and Unpaid Principal Balances for Troubled Debt Restructured Loans

The following tables include the recorded investment and unpaid principal balances for troubled debt restructured loans at September 30, 2015 and December 31, 2014 (dollars in thousands). These tables include TDR loans that were purchased credit impaired (“PCI”). As of September 30, 2015, there were two PCI loans that are considered to be TDR loans with a recorded investment of $161,000 and unpaid principal balances of $344,000.

	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized
As of and for the period ended September 30, 2015
Commercial and Industrial	$	1,780	$	2,385	$	—
Commercial and Other Real Estate		99		105		—
Total	$	1,879	$	2,490	$	—

	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized
As of and for the year ended December 31, 2014
Commercial and Industrial	$	530	$	719	$	—
Commercial and Other Real Estate		114		115		—
Total	$	644	$	834	$	—

Pre and Post Modification Recorded Investment in TDR Loans

The following table shows the pre- and post-modification recorded investment in TDR loans by loan segment that have occurred during the periods indicated (dollars in thousands):

	Three Months Ended September 30,
	2015						2014
	Number of Loans		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Troubled Debt Restructured Loans:
Commercial and Industrial		3	$	1,335	$	1,335		—	$	—	$	—
Total		3	$	1,335	$	1,335		—	$	—	$	—

	Nine Months Ended September 30,
	2015						2014
	Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Troubled Debt Restructured Loans:
Commercial and Industrial		3	$	1,335	$	1,335		1	$	224	$	224
Total		3	$	1,335	$	1,335		1	$	224	$	224

Accretable Yield for Loans Acquired

The following table reflects the accretable net discount for loans acquired through acquisition, for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Balance, beginning of period	$	18,255		$	6,412		$	21,402		$	7,912
Accretion, included in interest income		(1,463	)		(813	)		(4,140	)		(2,264	)
Reclassifications (to) from non-accretable yield		(5	)		—			(475	)		(49	)
Balance, end of period	$	16,787		$	5,599		$	16,787		$	5,599

Carrying Value of Purchased Credit Impaired Loans

The following table reflects the outstanding balance and related carrying value of PCI loans as of the dates indicated (dollars in thousands):

	September 30, 2015				December 31, 2014
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial and Industrial	$	710	$	382	$	1,205	$	693
Commercial and Other Real Estate		2,262		1,534		3,018		1,692
Other		—		—		62		—
Total	$	2,972	$	1,916	$	4,285	$	2,385

Accretable Net Discount of Purchased Credit Impaired Loans

The following table reflects the activities in the accretable net discount for PCI loans for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Balance, beginning of period	$	286		$	360		$	324		$	395
Accretion, included in interest income		(20	)		(18	)		(58	)		(53	)
Reclassifications from non-accretable yield		—			—			—			—
Balance, end of period	$	266		$	342		$	266		$	342

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses, and Fair Values of Investment Securities

The following tables present the amortized cost, gross unrealized gains and losses, and fair values of investment securities by major category as of the dates indicated (dollars in thousands):

			Gross Unrealized
September 30, 2015	Amortized Cost		Gains		Losses		Fair Value
Available-for-sale:
U.S. Govt Agency and Sponsored Agency - Note Securities	$	1,018	$	4	$	—	$	1,022
U.S. Govt Agency - SBA Securities		76,238		665		371		76,532
U.S. Govt Agency - GNMA Mortgage-Backed Securities		32,607		243		252		32,598
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities		97,568		622		285		97,905
Corporate Securities		4,023		29		—		4,052
Municipal Securities		1,017		3		—		1,020
Asset Backed Securities		8,113		—		254		7,859
U.S. Treasury Notes		35,047		50		—		35,097
Total available-for-sale		255,631		1,616		1,162		256,085
Held-to-maturity:
Municipal Securities		43,269		224		71		43,422
Total held-to-maturity		43,269		224		71		43,422
Total investment securities	$	298,900	$	1,840	$	1,233	$	299,507

			Gross Unrealized
December 31, 2014	Amortized Cost		Gains		Losses		Fair Value
Available-for-sale:
U.S. Govt Agency and Sponsored Agency - Note Securities	$	2,036	$	2	$	—	$	2,038
U.S. Govt Agency - SBA Securities		54,062		770		345		54,487
U.S. Govt Agency - GNMA Mortgage-Backed Securities		29,364		255		277		29,342
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities		107,348		457		577		107,228
Corporate Securities		4,043		77		—		4,120
Municipal Securities		1,039		11		—		1,050
Asset Backed Securities		8,711		1		40		8,672
U.S. Treasury Notes		20,031		—		6		20,025
Total available-for-sale		226,634		1,573		1,245		226,962
Held-to-maturity:
Municipal Securities		47,147		169		157		47,159
Total held-to-maturity		47,147		169		157		47,159
Total investment securities	$	273,781	$	1,742	$	1,402	$	274,121

Gross Unrealized Losses and Fair Values of AFS and HTM Investment Securities that were in Unrealized Loss Positions

The following tables present the gross unrealized losses and fair values of AFS and HTM investment securities that were in unrealized loss positions, summarized and classified according to the duration of the loss period as of the dates indicated (dollars in thousands).

	< 12 Continuous Months				> 12 Continuous Months				Total
September 30, 2015	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Temporarily-impaired available-for-sale investment securities:
U.S. Govt. Agency SBA Securities	$	27,938	$	204	$	11,904	$	167	$	39,842	$	371
U.S. Govt. Agency – GNMA Mortgage-Backed Securities		8,569		69		7,421		183		15,990		252
U.S. Govt. Sponsored Agency – CMO & Mortgage-Backed Securities		38,563		194		4,079		91		42,642		285
Asset Backed Securities		7,859		254		—		—		7,859		254
Total temporarily-impaired available-for-sale investment securities	$	82,929	$	721	$	23,404	$	441	$	106,333	$	1,162
Temporarily-impaired held-to-maturity investment securities:
Municipal Securities	$	10,932	$	71	$	—	$	—	$	10,932	$	71
Total temporarily-impaired held-to-maturity investment securities	$	10,932	$	71	$	—	$	—	$	10,932	$	71
	< 12 Continuous Months				> 12 Continuous Months				Total
December 31, 2014	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Temporarily-impaired available-for-sale investment securities:
U.S. Govt. Agency SBA Securities	$	10,688	$	87	$	10,095	$	258	$	20,783	$	345
U.S. Govt. Agency – GNMA Mortgage-Backed Securities		12,784		65		8,784		212		21,568		277
U.S. Govt. Sponsored Agency – CMO & Mortgage-Backed Securities		64,360		413		6,584		164		70,944		577
Asset Backed Securities		4,849		40		—		—		4,849		40
U.S Treasury Notes		20,025		6		—		—		20,025		6
Total temporarily-impaired available-for-sale investment securities	$	112,706	$	611	$	25,463	$	634	$	138,169	$	1,245
Temporarily-impaired held-to-maturity investment securities:
Municipal Securities	$	23,966	$	157	$	—	$	—	$	23,966	$	157
Total temporarily-impaired held-to-maturity investment securities	$	23,966	$	157	$	—	$	—	$	23,966	$	157

Maturities Schedule of Securities

	September 30, 2015
Maturities Schedule of Securities (Dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield
Available-for-sale:
Due through one year	$	51,864	$	52,087		1.22	%
Due after one year through five years		100,939		101,176		1.50	%
Due after five years through ten years		64,028		63,949		1.85	%
Due after ten years		38,800		38,873		2.45	%
Total available-for-sale		255,631		256,085		1.67	%
Held-to-maturity:
Due through one year		3,743		3,747		2.04	%
Due after one year through five years		31,557		31,646		1.52	%
Due after five years through ten years		7,969		8,029		1.94	%
Total held-to-maturity		43,269		43,422		1.65	%
Total investment securities	$	298,900	$	299,507		1.67	%

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Recorded Investment and Unpaid Principal Balances for Troubled Debt Restructured Loans (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
Recorded Investment	$ 3,545		$ 2,651
Unpaid Principal Balance	5,213		2,894
Interest Income Recognized		$ 34
Commercial and Industrial
Financing Receivable, Modifications [Line Items]
Recorded Investment	3,446		1,914
Unpaid Principal Balance	5,108		2,155
Interest Income Recognized		$ 34
Commercial and Other Real Estate
Financing Receivable, Modifications [Line Items]
Recorded Investment	99		737
Unpaid Principal Balance	105		739
Troubled Debt Restructuring
Financing Receivable, Modifications [Line Items]
Recorded Investment	1,879		644
Unpaid Principal Balance	2,490		834
Interest Income Recognized	0		0
Troubled Debt Restructuring | Commercial and Industrial
Financing Receivable, Modifications [Line Items]
Recorded Investment	1,780		530
Unpaid Principal Balance	2,385		719
Interest Income Recognized	0		0
Troubled Debt Restructuring | Commercial and Other Real Estate
Financing Receivable, Modifications [Line Items]
Recorded Investment	99		114
Unpaid Principal Balance	105		115
Interest Income Recognized	$ 0		$ 0

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Gross Unrealized Losses and Fair Values of AFS and HTM Investment Securities that were in Unrealized Loss Positions (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value	$ 82,929	$ 112,706
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss	721	611
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value	23,404	25,463
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss	441	634
Temporarily-impaired available-for-sale investment securities, Total, Fair Value	106,333	138,169
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss	1,162	1,245
Temporarily-impaired held-to-maturity investment securities, Less than 12 months, Fair Value	10,932	23,966
Temporarily-impaired held-to-maturity investment securities, Less than 12 months, Gross Unrealized Loss	71	157
Temporarily-impaired held-to-maturity investment securities, More than 12 months, Fair Value	0	0
Temporarily-impaired held-to-maturity investment securities, More than 12 months, Gross Unrealized Loss	0	0
Temporarily-impaired held-to-maturity investment securities, Fair Value	10,932	23,966
Temporarily-impaired held-to-maturity investment securities, Gross Unrealized Loss	71	157
U.S. Govt Agency - GNMA Mortgage-Backed Securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value	8,569	12,784
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss	69	65
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value	7,421	8,784
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss	183	212
Temporarily-impaired available-for-sale investment securities, Total, Fair Value	15,990	21,568
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss	252	277
Asset Backed Securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value	7,859	4,849
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss	254	40
Temporarily-impaired available-for-sale investment securities, Total, Fair Value	7,859	4,849
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss	254	40
U. S. Treasury Notes
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value		20,025
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss		6
Temporarily-impaired available-for-sale investment securities, Total, Fair Value		20,025
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss		6
Municipal Securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Temporarily-impaired held-to-maturity investment securities, Less than 12 months, Fair Value	10,932	23,966
Temporarily-impaired held-to-maturity investment securities, Less than 12 months, Gross Unrealized Loss	71	157
Temporarily-impaired held-to-maturity investment securities, More than 12 months, Fair Value	0	0
Temporarily-impaired held-to-maturity investment securities, More than 12 months, Gross Unrealized Loss	0	0
Temporarily-impaired held-to-maturity investment securities, Fair Value	10,932	23,966
Temporarily-impaired held-to-maturity investment securities, Gross Unrealized Loss	71	157
U.S. Govt Agency - SBA Securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value	27,938	10,688
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss	204	87
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value	11,904	10,095
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss	167	258
Temporarily-impaired available-for-sale investment securities, Total, Fair Value	39,842	20,783
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss	371	345
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Fair Value	38,563	64,360
Temporarily-impaired available-for-sale investment securities, Less than 12 Continuous Months, Gross Unrealized Loss	194	413
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Fair Value	4,079	6,584
Temporarily-impaired available-for-sale investment securities, More than 12 Continuous Months, Gross Unrealized Loss	91	164
Temporarily-impaired available-for-sale investment securities, Total, Fair Value	42,642	70,944
Temporarily-impaired available-for-sale investment securities, Total, Gross Unrealized Loss	$ 285	$ 577

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Borrowings and Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2015

Brokers and Dealers [Abstract]

Terms and Maturity of Bank's Securities Sold under Agreements

The tables below describe the terms and maturity of the Company’s securities sold under agreements to repurchase as of the dates indicated (dollars in thousands):

	September 30, 2015
Date Issued	Amount		Interest Rate			Original Term		Maturity Date
September 30, 2015	$	16,698		0.10% – 0.25	%		1 day		October 1, 2015
Total	$	16,698		0.22	%

	December 31, 2014
Date Issued	Amount		Interest Rate			Original Term		Maturity Date
December 31, 2014	$	9,411		0.13% – 0.25	%		2 days		January 2, 2015
Total	$	9,411		0.20	%

Terms of Issuance Subordinated Debentures Outstanding

The following table summarizes the terms of each issuance of subordinated debentures outstanding as of September 30, 2015:

Series	Amount (in thousands)			Issuance Date		Maturity Date		Rate Index			Current Rate			Next Reset Date
Trust I	$	6,186			12/10/04		03/15/35		3 month LIBOR + 2.05	%		2.39	%		12/15/15
Trust II		3,093			12/23/05		03/15/36		3 month LIBOR + 1.75	%		2.09	%		12/15/15
Trust III		3,093			06/30/06		09/18/36		3 month LIBOR + 1.85	%		2.19	%		12/15/15
Subtotal		12,372
Unamortized fair value adjustment		(2,715	)
Net	$	9,657

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Effect of All Derivative Instruments on Consolidated Statements of Income

The following table summarizes the effect of all derivative financial instruments on the consolidated statements of income for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Derivatives not designated as hedging instruments:
Interest rate swap contracts – loans
Increase in fair value of interest rate swap contracts	$	41		$	86		$	124		$	179
Payments on interest rate swap contracts on loans		(66	)		(69	)		(198	)		(205	)
Net increase (decrease) in other non-interest income	$	(25	)	$	17		$	(74	)	$	(26	)
Derivatives designated as hedging instruments:
Interest rate swap contracts – loans
Increase in fair value of interest rate swap contracts	$	142		$	361		$	583		$	663
Increase (decrease) in fair value of hedged loans		191			(104	)		279			135
Payment on interest rate swap contracts on loans		(275	)		(317	)		(846	)		(950	)
Net increase (decrease) in interest income on loans	$	58		$	(60	)	$	16		$	(152	)

1st Enterprise Bank

Balance Sheet Classification of Derivative Financial Instruments

The following tables present the notional amount and the fair values of the asset and liability of the Company’s derivative instruments acquired from 1^st Enterprise as of the dates and periods indicated (dollars in thousands):

	Asset Derivatives
	September 30, 2015		December 31, 2014
Interest rate swap contracts fair value	$	1,298	$	719
Balance sheet location		Accrued Interest Receivable and Other Assets		Accrued Interest Receivable and Other Assets

The following table presents the fair values of the liability of the Company’s derivative instruments acquired from 1^st Enterprise as of the dates indicated (dollars in thousands):

	Liability Derivatives
	September 30, 2015		December 31, 2014
Interest rate swap contracts fair value	$	1,298	$	719
Balance sheet location		Accrued Interest Payable and Other Liabilities		Accrued Interest Payable and Other Liabilities

PC Bancorp

Balance Sheet Classification of Derivative Financial Instruments

The following table presents the notional amount and the fair values of the asset and liability of the Company’s derivative instruments acquired from PC Bancorp as of the dates indicated (dollars in thousands):

	Liability Derivatives
	September 30, 2015		December 31, 2014
Fair Value Hedges
Total interest rate contacts notional amount	$	26,226	$	29,289
Derivatives not designated as hedging instruments:
Interest rate swap contracts fair value	$	394	$	519
Derivatives designated as hedging instruments:
Interest rate swap contracts fair value		1,694		2,277
Total interest rate contracts fair value	$	2,088	$	2,796
Balance sheet location		Accrued Interest Payable and Other Liabilities		Accrued Interest Payable and Other Liabilities

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income:	$ 15,729	$ 7,601
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,831	518
Provision for unfunded loan commitments	87	76
Stock based compensation expense	2,130	1,332
Depreciation	1,062	725
Net accretion of discounts/premiums for loans acquired and deferred loan fees/costs	(1,038)	(3,947)
Net amortization from investment securities	2,343	1,133
Increase in bank owned life insurance	(947)	(463)
Amortization of core deposit intangibles	1,262	203
Amortization of time deposit premium	(10)	(13)
Net amortization of leasehold right intangible asset and liabilities	4	158
Accretion of subordinated debenture discount	119	119
Valuation write-downs on OREO	133
Gain on sale of SBA loans, net	(1,278)	(936)
Decrease (increase) in deferred tax assets	(790)	1,176
Decrease in accrued interest receivable and other assets	2,484	1,838
Increase (decrease) in accrued interest payable and other liabilities	(327)	255
Net excess in tax benefit on stock compensation	(788)	(477)
Increase (decrease) in fair value of derivative swap liability	591	(364)
Net cash provided by operating activities	23,597	8,934
Cash flows from investing activities:
Purchases of available-for-sale investment securities	(57,597)	(48,656)
Proceeds from repayment and maturities from investment securities	30,135	15,157
Loans originated, net of principal payments	(145,359)	(40,495)
Purchases of premises and equipment	(666)	(842)
Net increase (decrease) in certificates of deposit in other financial institutions	17,759	(14,166)
Purchase of bank owned life insurance	(9,869)
Net cash (used in) investing activities	(165,597)	(89,002)
Cash flows from financing activities:
Net increase in Non-interest bearing demand deposits	215,714	66,059
Net increase (decrease) in Interest bearing transaction accounts	51,309	(9,836)
Net increase (decrease) in Money market and savings deposits	47,617	(14,970)
Net decrease in Certificates of deposit	(2,510)	(10,716)
Net increase in Securities sold under agreements to repurchase	7,287	2,477
Net proceeds from stock options exercised	1,434	1,277
Restricted stock repurchase	(856)	(246)
Dividends paid on preferred stock	(142)
Net excess in tax benefit on stock compensation	788	477
Net cash provided by financing activities	320,641	34,522
Net increase (decrease) in cash and cash equivalents	178,641	(45,546)
Cash and cash equivalents, beginning of year	132,586	241,287
Cash and cash equivalents, end of period	311,227	195,741
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	2,127	1,301
Cash paid during the period for taxes	6,767	2,550
Supplemental disclosures of non-cash investing activities:
Net change in unrealized gain on available-for-sale investment securities, net of tax	73	408
Loans transferred to other real estate owned	$ 575	$ 219

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Balance Sheet Offsetting (Tables)

9 Months Ended

Sep. 30, 2015

Text Block [Abstract]

Securities Sold under Repurchase Agreements and Derivatives Securities Offset in Consolidated Financial Statements Due to an Enforceable Master Netting Arrangement

The table below presents the Company’s financial instruments that may be eligible for offsetting which include securities sold under agreements to repurchase that have no enforceable master netting arrangement and derivative securities that could be offset in the consolidated financial statements due to an enforceable master netting arrangement (dollars in thousands):

	Gross Amounts Recognized in the Consolidated Balance Sheets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets				Net Amount (Collateral over liability balance required to be pledged)
							Financial Instruments		Collateral Pledged
September 30, 2015
Financial Assets:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	1,298	$	—	$	1,298	$	1,298	$	—	$	—
Total	$	1,298	$	—	$	1,298	$	1,298	$	—	$	—
Financial Liabilities:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	3,386	$	—	$	3,386	$	3,386	$	4,306	$	920
Securities sold under agreements to repurchase (See Note 9 – Borrowings and Subordinated Debentures)		16,698		—		16,698		16,698		49,139		32,441
Total	$	20,084	$	—	$	20,084	$	20,084	$	53,445	$	33,361

	Gross Amounts Recognized in the Consolidated Balance Sheets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets				Net Amount (Collateral over liability balance required to be pledged)
							Financial Instruments		Collateral Pledged
December 31, 2014
Financial Assets:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	719	$	—	$	719	$	719	$	—	$	—
Total	$	719	$	—	$	719	$	719	$	—	$	—
Financial Liabilities:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	3,515	$	—	$	3,515	$	3,515	$	4,150	$	635
Securities sold under agreements to repurchase (See Note 9 – Borrowings and Subordinated Debentures)		9,411		—		9,411		9,411		32,304		22,893
Total	$	12,926	$	—	$	12,926	$	12,926	$	36,454	$	23,528

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Computation of Book Value and Tangible Book Value per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Equity [Abstract]
Total Shareholders' Equity	$ 298,348	$ 279,192
Less: Preferred stock	16,739	16,004
Less: Goodwill	63,950	63,950
Less: Core deposit and leasehold right intangibles	8,138	9,547
Tangible common equity	$ 209,521	$ 189,691
Common shares issued	16,870,936	16,683,856
Book value per common share	$ 16.69	$ 15.78
Tangible book value per common share	$ 12.42	$ 11.37

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Age Analysis of Recorded Investment (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing	$ 487	$ 779
Total Non-Accrual	4,304	3,909
Current	1,766,556	1,620,035
Total Loans	1,771,347	1,624,723
Commercial and Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing	96	425
Total Non-Accrual	3,826	2,604
Current	552,540	525,488
Total Loans	556,462	528,517
Construction, Land Development and Other Land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	94,353	72,223
Total Loans	94,353	72,223
Commercial and Other Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing	391	354
Total Non-Accrual	478	1,305
Current	1,082,022	993,965
Total Loans	1,082,891	995,624
Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	37,641	28,359
Total Loans	37,641	28,359
Loans 31 to 60 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing	85	546
Loans 31 to 60 Days Past Due | Commercial and Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing	85	192
Loans 31 to 60 Days Past Due | Commercial and Other Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing		354
Loans 61 to 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing	402	233
Loans 61 to 90 Days Past Due | Commercial and Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing	11	$ 233
Loans 61 to 90 Days Past Due | Commercial and Other Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Accruing	$ 391

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Restricted Stock Activity (Detail) - Restricted Stock	9 Months Ended
	Sep. 30, 2015 $ / shares shares
Number of Shares
Unvested, at beginning, Number of Shares	309,506
Granted, Number of Shares	77,800
Vested, Number of Shares	(99,750)
Cancelled and forfeited, Number of Shares	(9,175)
Unvested, at end, Number of Shares	278,381
Weighted-Average Grant-Date Fair Value per Share
Unvested, at beginning, Weighted-Average Grant-Date Fair Value per Share | $ / shares	$ 16.41
Granted, Weighted-Average Grant-Date Fair Value per Share | $ / shares	20.95
Vested, Weighted-Average Grant-Date Fair Value per Share | $ / shares	13.42
Cancelled and forfeited, Weighted-Average Grant-Date Fair Value per Share | $ / shares	16.50
Unvested, at end, Weighted-Average Grant-Date Fair Value per Share | $ / shares	$ 18.74

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Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 41,929	$ 33,996
Interest earning deposits in other financial institutions	269,298	98,590
Total cash and cash equivalents	311,227	132,586
Certificates of deposit in other financial institutions	58,674	76,433
Investment securities available-for-sale, at fair value	256,085	226,962
Investment securities held-to-maturity, at amortized cost	43,269	47,147
Total investment securities	299,354	274,109
Loans	1,771,347	1,624,723
Allowance for loan loss	(14,965)	(12,610)
Net loans	1,756,382	1,612,113
Premises and equipment, net	4,981	5,377
Deferred tax assets, net	17,241	16,504
Other real estate owned, net	1,292	850
Goodwill	63,950	63,950
Core deposit and leasehold right intangibles	8,138	9,547
Bank owned life insurance	49,548	38,732
Accrued interest receivable and other assets	33,220	34,916
Total Assets	2,604,007	2,265,117
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest bearing demand deposits	1,248,348	1,032,634
Interest bearing transaction accounts	257,853	206,544
Money market and savings deposits	691,292	643,675
Certificates of deposit	62,320	64,840
Total deposits	2,259,813	1,947,693
Securities sold under agreements to repurchase	16,698	9,411
Subordinated debentures, net	9,657	9,538
Accrued interest payable and other liabilities	19,491	19,283
Total Liabilities	$ 2,305,659	$ 1,985,925
Commitments and Contingencies (Note 14)
SHAREHOLDERS' EQUITY
Serial Preferred Stock - authorized, 50,000,000 shares: Series A, non-cumulative perpetual preferred stock, $1,000 per share liquidation preference, 16,400 shares authorized, issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 16,739	$ 16,004
Common stock - authorized, 75,000,000 shares no par value, 16,870,936 shares issued and 16,910,936 shares outstanding at September 30, 2015, and 16,683,856 shares issued and outstanding at December 31, 2014	227,823	226,389
Additional paid-in capital	21,810	19,748
Retained earnings	31,713	16,861
Accumulated other comprehensive income	263	190
Total Shareholders' Equity	298,348	279,192
Total Liabilities and Shareholders' Equity	$ 2,604,007	$ 2,265,117

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Maturities Schedule of Securities (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Available-for-sale, Amortized Cost
Due through one year	$ 51,864
Due after one year through five years	100,939
Due after five years through ten years	64,028
Due after ten years	38,800
Available-for-sale Securities, Amortized Cost	255,631	$ 226,634
Held-to-maturity, Amortized Cost
Due through one year	3,743
Due after one year through five years	31,557
Due after five years through ten years	7,969
Held-to-maturity Securities, Amortized Cost	43,269	47,147
Available-for-sale Securities and Held-to-maturity Securities, Amortized Cost	298,900	273,781
Available-for-sale, Fair Value
Due through one year	52,087
Due after one year through five years	101,176
Due after five years through ten years	63,949
Due after ten years	38,873
Total available-for-sale	256,085	226,962
Held-to-maturity, Fair Value
Due through one year	3,747
Due after one year through five years	31,646
Due after five years through ten years	8,029
Total held-to-maturity	43,422	47,159
Total investment securities	$ 299,507	$ 274,121
Available-for-sale, Weighted Average Yield
Due through one year	1.22%
Due after one year through five years	1.50%
Due after five years through ten years	1.85%
Due after ten years	2.45%
Total available-for-sale	1.67%
Held-to-maturity, Weighted Average Yield
Due through one year	2.04%
Due after one year through five years	1.52%
Due after five years through ten years	1.94%
Total held-to-maturity	1.65%
Total investment securities	1.67%

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net Income	$ 6,263	$ 2,549	$ 15,729	$ 7,601
Other Comprehensive Income, net of tax:
Net change in unrealized gains on available-for-sale investment securities	311	8	73	408
Other Comprehensive Income	311	8	73	408
Comprehensive Income	$ 6,574	$ 2,557	$ 15,802	$ 8,009

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Carrying Value of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Outstanding [Line Items]
Unpaid Principal Balance	$ 5,213	$ 2,894
Carrying Value	3,545	2,651
PCI loans
Debt Outstanding [Line Items]
Unpaid Principal Balance	2,972	4,285
Carrying Value	1,916	2,385
PCI loans | Commercial and Industrial
Debt Outstanding [Line Items]
Unpaid Principal Balance	710	1,205
Carrying Value	382	693
PCI loans | Commercial and Other Real Estate
Debt Outstanding [Line Items]
Unpaid Principal Balance	2,262	3,018
Carrying Value	$ 1,534	1,692
PCI loans | Other
Debt Outstanding [Line Items]
Unpaid Principal Balance		$ 62

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Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the financial assets and financial liabilities measured at fair value on a recurring basis as of the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets – September 30, 2015
Investment securities available-for-sale	$	256,085	$	—	$	256,085	$	—
Interest Rate Swap Contracts		1,298		—		1,298		—
Financial Liabilities – September 30, 2015
Interest Rate Swap Contracts	$	3,386	$	—	$	3,386	$	—
Financial Assets – December 31, 2014
Investment securities available-for-sale	$	226,962	$	—	$	226,962	$	—
Interest Rate Swap Contracts		719		—		719		—
Financial Liabilities – December 31, 2014
Interest Rate Swap Contracts	$	3,515	$	—	$	3,515	$	—

Balances of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a non-recurring basis by caption and by level within the fair value hierarchy as of the dates indicated (dollars in thousands):

	Recorded Investment Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets – September 30, 2015
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans)	$	751	$	—	$	—	$	751
Other real estate owned		1,292		—		—		1,292
Total	$	2,043	$	—	$	—	$	2,043
Financial Assets – December 31, 2014
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans)	$	1,172	$	—	$	—	$	1,172
Other real estate owned		850		—		—		850
Total	$	2,022	$	—	$	—	$	2,022

Significant Unobservable Inputs Used in Fair Value Measurements for Level 3 Assets and Liabilities Measured at Fair Value on Recurring or Non-Recurring Basis

The following table presents the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of the dates indicated (dollars in thousands):

	Fair Value		Valuation Methodology	Valuation Model and/or Factors	Unobservable Input Values
Financial Assets – September 30, 2015
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off	$	751	Credit loss estimate of aged accounts receivable collateral	Credit loss factors on aging of accounts receivable collateral	20%-80%
				Estimated selling costs	16%
Other real estate owned		1,292	Commercial real estate appraisal; Executed sale contract	Sales approach Estimated selling costs	6%
Total	$	2,043
Financial Assets – December 31, 2014
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off	$	1,172	Credit loss estimate of aged accounts receivable collateral	Credit loss factors on aging of accounts receivable collateral	10%-80%
				Estimated selling costs	15%
Other real estate owned		850	Residential real estate appraisal	Sales approach Estimated selling costs	6%
Total	$	2,022

Level in Fair Value Hierarchy for Financial Instruments Estimated Fair Values

The table below presents the carrying amounts and fair values of financial instruments based on their fair value hierarchy indicated (dollars in thousands):

					Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2015
Financial Assets
Investment securities available-for-sale	$	256,085		256,085	$	—	$	256,085	$	—
Investment securities held-to-maturity		43,269		43,422		—		43,422		—
Loans, net		1,756,382		1,797,338		—		—		1,797,338
Interest rate swap contracts		1,298		1,298		—		1,298		—
Financial Liabilities
Certificates of deposit		62,320		62,320		—		62,320		—
Securities sold under agreements to repurchase		16,698		16,698		—		16,698		—
Subordinated debentures		9,657		12,372		—		12,372		—
Interest rate swap contracts		3,386		3,386		—		3,386		—
December 31, 2014
Financial Assets
Investment securities available-for-sale	$	226,962		226,962	$	—	$	226,962	$	—
Investment securities held-to-maturity		47,147		47,159		—		47,159		—
Loans, net		1,612,113		1,627,717		—		—		1,627,717
Interest rate swap contracts		719		719		—		719		—
Financial Liabilities
Certificates of deposit		64,840		64,857		—		64,857		—
Securities sold under agreements to repurchase		9,411		9,411		—		9,411		—
Subordinated debentures		9,538		12,372		—		12,372		—
Interest rate swap contracts		3,515		3,515		—		3,515		—

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Derivative Financial Instruments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015 USD ($) Agreement Derivative Financial_Institution	Dec. 31, 2014 USD ($)
Derivative [Line Items]
Number of pay-fixed, receive-variable interest rate swap agreements | Agreement	19
Outstanding swaps original maturity period	15 years
Certificates of deposit with other financial institutions pledged	$ 3,000,000
Investment securities	$ 299,354,000	$ 274,109,000
Interest rate swap contracts fair value
Derivative [Line Items]
Acquisition of interest rate swap contracts	Jul. 31, 2012
Investment securities	$ 2,000,000
Trading securities eligible for use as collateral	$ 5,000,000
1st Enterprise Bank
Derivative [Line Items]
Number of counterparty banks | Financial_Institution	2
Derivative assets liabilities offset	$ 0
Total notional amount of swaps	$ 35,000,000	$ 36,000,000
Acquisition of interest rate swap contracts	Nov. 30, 2014
Derivatives not Designated as Hedging Instruments | 1st Enterprise Bank | Interest rate swap contracts fair value
Derivative [Line Items]
Swap contracts acquired | Derivative	13
Offsetting interest-rate swaps acquired | Derivative	13

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 14 - Commitments and Contingencies

Litigation

From time to time the Company is a party to claims and legal proceedings arising in the ordinary course of business. The Company accrues for any probable loss contingencies that are estimable and discloses any material losses. As of September 30, 2015, there were no legal proceedings against the Company the outcome of which are expected to have a material adverse impact on the Company’s financial position, results of operations or cash flows, as a whole.

Financial Instruments with Off Balance Sheet Risk

See Note 21 – Commitments and Contingencies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Financial instruments with off balance sheet risk include commitments to extend credit of $765 million and $720 million at September 30, 2015 and December 31, 2014, respectively. Included in the aforementioned commitments were standby letters of credit outstanding of $70 million and $57 million at September 30, 2015 and December 31, 2014, respectively.

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Basis of Financial Statement Presentation - Additional Information (Detail)	Sep. 30, 2015 Office
Accounting Policies [Abstract]
Full service branch offices	10

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Basis of Financial Statement Presentation (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Use of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In addition, these accounting principles require the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements.

Estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan loss and various assets and liabilities measured at fair value. While management uses the most current available information to recognize losses on loans, future additions to the allowance for loan loss may be necessary based on, among other factors, changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan loss. Regulatory agencies may require the Company to recognize additions to the allowance for loan loss based on their judgment about information available to them at the time of their examination.

Business Segments

Business Segments

The Company is organized and operated as a single reporting segment, principally engaged in commercial business banking. The Company conducts its lending and deposit operations through ten full service branch offices located in Los Angeles, Orange, Ventura and San Bernardino counties.

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Securities Sold under Repurchase Agreements and Derivatives Securities Offset in Consolidated Financial Statements Due to an Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Offsetting [Abstract]
Interest rate swap contracts fair value - Gross Amounts Recognized in the Consolidated Balance Sheets	$ 1,298	$ 719
Interest rate swap contracts fair value - Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Interest rate swap contracts fair value - Net Amounts of Assets Presented in the Consolidated Balance Sheets	1,298	719
Interest rate swap contracts fair value - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments	1,298	719
Interest rate swap contracts fair value - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged	0	0
Interest rate swap contracts fair value - Net Amount (Collateral over liability balance required to be pledged)	0	0
Total - Gross Amounts Recognized in the Consolidated Balance Sheets	1,298	719
Total - Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Total - Net Amounts of Assets Presented in the Consolidated Balance Sheets	1,298	719
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments	1,298	719
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged	0	0
Total - Net Amount (Collateral over liability balance required to be pledged)	0	0
Interest rate swap contracts fair value - Gross Amounts Recognized in the Consolidated Balance Sheets	3,386	3,515
Interest rate swap contracts fair value - Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Interest rate swap contracts fair value - Net Amounts of Assets Presented in the Consolidated Balance Sheets	3,386	3,515
Interest rate swap contracts fair value - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments	3,386	3,515
Interest rate swap contracts fair value - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged	4,306	4,150
Interest rate swap contracts fair value - Net Amount (Collateral over liability balance required to be pledged)	920	635
Securities sold under agreements to repurchase - Gross Amounts Recognized in the Consolidated Balance Sheets	16,698	9,411
Securities sold under agreements to repurchase - Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Securities sold under agreements to repurchase - Net Amounts of Assets Presented in the Consolidated Balance Sheets	16,698	9,411
Securities sold under agreements to repurchase - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments	16,698	9,411
Securities sold under agreements to repurchase - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged	49,139	32,304
Securities sold under agreements to repurchase - Net Amount (Collateral over liability balance required to be pledged)	32,441	22,893
Total - Gross Amounts Recognized in the Consolidated Balance Sheets	20,084	12,926
Total - Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Total - Net Amounts of Assets Presented in the Consolidated Balance Sheets	20,084	12,926
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments	20,084	12,926
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Collateral Pledged	53,445	36,454
Total - Net Amount (Collateral over liability balance required to be pledged)	$ 33,361	$ 23,528

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Consolidated Statement of Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Restricted Stock Units (RSUs)	Preferred Stock	Common Stock	Common Stock Restricted Stock Units (RSUs)	Additional Paid in Capital	Additional Paid in Capital Restricted Stock Units (RSUs)	Retained Earnings	Accumulated Other Comprehensive Income
Beginning Balance (in shares) at Dec. 31, 2014			16,400	16,683,856
Beginning Balance at Dec. 31, 2014	$ 279,192		$ 16,004	$ 226,389		$ 19,748		$ 16,861	$ 190
Net issuance of restricted stock	68,625			68,625
Exercise of stock options (in shares)	158,315			158,315
Exercise of stock options	$ 1,434			$ 1,434
Stock based compensation expense related to employee stock options and restricted stock	2,130					2,130
Restricted stock repurchase		$ (856)					$ (856)
Restricted stock repurchase (in shares)					(39,860)
Excess tax benefit - stock based compensation	788					788
Preferred stock dividends and discount accretion	(142)		$ 735					(877)
Net Income	15,729							15,729
Other Comprehensive Income	73								73
Ending Balance (in shares) at Sep. 30, 2015			16,400	16,870,936
Ending Balance at Sep. 30, 2015	$ 298,348		$ 16,739	$ 227,823		$ 21,810		$ 31,713	$ 263

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, authorized shares	50,000,000	50,000,000
Common stock, shares authorized	75,000,000	75,000,000
Common stock, no par value
Common stock, shares issued	16,870,936	16,683,856
Common stock, shares outstanding	16,910,936	16,683,856
Series A Preferred Stock
Preferred stock, liquidation preference per share	$ 1	$ 1
Preferred stock, authorized shares	16,400	16,400
Preferred stock, shares issued	16,400	16,400
Preferred stock, shares outstanding	16,400	16,400

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Borrowings and Subordinated Debentures

9 Months Ended

Sep. 30, 2015

Brokers and Dealers [Abstract]

Borrowings and Subordinated Debentures

Note 9 - Borrowings and Subordinated Debentures

Securities Sold Under Agreements to Repurchase

The Company enters into certain transactions, the legal form of which are sales of securities under agreements to repurchase (“Repos”) at a later date at a set price. Securities sold under agreements to repurchase generally mature within 1 day to 180 days from the issue date and are routinely renewed.

As discussed in Note 6 – Investment Securities, the Company has pledged certain investments as collateral for these agreements. Securities with a fair value of $49 million and $32.3 million were pledged to secure the Repos at September 30, 2015 and December 31, 2014, respectively.

The tables below describe the terms and maturity of the Company’s securities sold under agreements to repurchase as of the dates indicated (dollars in thousands):

	September 30, 2015
Date Issued	Amount		Interest Rate			Original Term		Maturity Date
September 30, 2015	$	16,698		0.10% – 0.25	%		1 day		October 1, 2015
Total	$	16,698		0.22	%

	December 31, 2014
Date Issued	Amount		Interest Rate			Original Term		Maturity Date
December 31, 2014	$	9,411		0.13% – 0.25	%		2 days		January 2, 2015
Total	$	9,411		0.20	%

Federal Home Loan Bank Borrowings

The Company maintains a secured credit facility with the Federal Home Loan Bank of San Francisco “FHLB”, allowing the Company to borrow on an overnight and term basis. The Company’s credit facility with the FHLB is $618 million, which represents approximately 25% of the Bank’s total assets, as reported by the Bank in its June 30, 2015 FFIEC Call Report.

As of September 30, 2015, the Company had $795 million of loan collateral pledged with the FHLB which provides $526 million in borrowing capacity. The Company has $20 million in investment securities pledged with the FHLB to support this credit facility. In addition, the Company must maintain an investment in the Capital Stock of the FHLB. Under the FHLB Act, the FHLB has a statutory lien on the FHLB capital stock that the Company owns and the FHLB capital stock serves as further collateral under the borrowing line.

The Company had no outstanding advances (borrowings) with the FHLB as of September 30, 2015 or December 31, 2014.

Subordinated Debentures

The following table summarizes the terms of each issuance of subordinated debentures outstanding as of September 30, 2015:

Series	Amount (in thousands)			Issuance Date		Maturity Date		Rate Index			Current Rate			Next Reset Date
Trust I	$	6,186			12/10/04		03/15/35		3 month LIBOR + 2.05	%		2.39	%		12/15/15
Trust II		3,093			12/23/05		03/15/36		3 month LIBOR + 1.75	%		2.09	%		12/15/15
Trust III		3,093			06/30/06		09/18/36		3 month LIBOR + 1.85	%		2.19	%		12/15/15
Subtotal		12,372
Unamortized fair value adjustment		(2,715	)
Net	$	9,657

The Company had an aggregate outstanding contractual balance of $12.4 million in subordinated debentures at September 30, 2015. These subordinated debentures were acquired as part of the PC Bancorp merger and were issued to trusts originally established by PC Bancorp, which in turn issued trust preferred securities. These subordinated debentures were issued in three separate series. Each issuance had a maturity of 30 years from their approximate date of issue. All three subordinated debentures are variable rate instruments that reprice quarterly based on the three month LIBOR plus a margin (see tables above). All three subordinated debentures had their interest rates reset in September 2015 at the current three month LIBOR plus their index, and will continue to reprice quarterly through their maturity date. All three subordinated debentures are currently callable at par with no prepayment penalties.

Under Dodd Frank, trust preferred securities are excluded from Tier 1 capital, unless such securities were issued prior to May 19, 2010 by a bank holding company with less than $15 billion in assets. CU Bancorp assumed approximately $12.4 million of junior subordinated debt securities issued to various business trust subsidiaries of Premier Commercial Bancorp and funded through the issuance of approximately $12.0 million of floating rate capital trust preferred securities. These junior subordinated debt securities were issued prior to May 19, 2010. Because CU Bancorp has less than $15 billion in assets, the trust preferred securities that CU Bancorp assumed from Premier Commercial Bancorp continue to be included in Tier 1 capital, subject to a limit of 25% of Tier 1 capital elements.

Interest payments made by the Company on subordinated debentures are considered dividend payments under FRB regulations. Notification to the FRB is required prior to the Company declaring and paying a dividend during any period in which the Company’s quarterly net earnings are insufficient to fund the dividend amount. This notification requirement is included in regulatory guidance regarding safety and soundness surrounding capital and includes other non-financial measures such as asset quality, financial condition, capital adequacy, liquidity, future earnings projections, capital planning and credit concentrations. Should the FRB object to the dividend payments, the Company would be precluded from paying interest on the subordinated debentures after giving notice within 15 days before the payment date. Payments would not commence until approval is received or the Company no longer needs to provide notice under applicable guidance. The Company has the right, assuming no default has occurred, to defer payments of interest on the subordinated debentures at any time for a period not to exceed 20 consecutive quarters. The Company has not deferred any interest payments.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	CUNB
Entity Registrant Name	CU Bancorp
Entity Central Index Key	0001543643
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		17,034,659

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 10 - Derivative Financial Instruments

The Company is exposed to certain risks relating to its ongoing business operations and utilizes interest rate swap agreements (“swaps”) as part of its asset/liability management strategy to help manage its interest rate risk position. The Company has two counterparty banks.

Derivative Financial Instruments Acquired from 1st Enterprise

At September 30, 2015, the Company has thirteen interest rate swap agreements with customers and thirteen offsetting interest-rate swaps with a counterparty bank that were acquired as a result of the merger with 1^st Enterprise on November 30, 2014. The swap agreements are not designated as hedging instruments. The purpose of entering into offsetting derivatives not designated as a hedging instrument is to provide the Company a variable-rate loan receivable and provide the customer the financial effects of a fixed-rate loan without creating significant interest rate risk in the Company’s earnings.

The structure of the swaps is as follows: The Company enters into a swap with its customers to allow them to convert variable rate loans to fixed rate loans, and at the same time, the Company enters into a swap with the counterparty bank to allow the Company to pass on the interest-rate risk associated with fixed rate loans. The net effect of the transaction allows the Company to receive interest on the loan from the customer at a variable rate based on LIBOR plus a spread. The changes in the fair value of the swaps primarily offset each other and therefore should not have a significant impact on the Company’s results of operations. Our interest rate swap derivatives acquired from 1^st Enterprise are subject to a master netting arrangement with one counterparty bank. None of our derivative assets and liabilities are offset in the balance sheet.

The Company believes the risk of loss associated with counterparty borrowers relating to interest rate swaps is mitigated as the loans with swaps are underwritten to take into account potential additional exposure, although there can be no assurances in this regard since the performance of the swaps is subject to market and counterparty risk. At September 30, 2015 and December 31, 2014, the total notional amount of the Company’s swaps acquired from 1^st Enterprise was $35 million and $36 million, respectively.

The following tables present the notional amount and the fair values of the asset and liability of the Company’s derivative instruments acquired from 1^st Enterprise as of the dates and periods indicated (dollars in thousands):

	Asset Derivatives
	September 30, 2015		December 31, 2014
Interest rate swap contracts fair value	$	1,298	$	719
Balance sheet location		Accrued Interest Receivable and Other Assets		Accrued Interest Receivable and Other Assets

The following table presents the fair values of the liability of the Company’s derivative instruments acquired from 1^st Enterprise as of the dates indicated (dollars in thousands):

	Liability Derivatives
	September 30, 2015		December 31, 2014
Interest rate swap contracts fair value	$	1,298	$	719
Balance sheet location		Accrued Interest Payable and Other Liabilities		Accrued Interest Payable and Other Liabilities

Derivative Financial Instruments Acquired from PC Bancorp

At September 30, 2015, the Company also has nineteen pay-fixed, receive-variable, interest rate contracts that are designed to convert fixed rate loans into variable rate loans. The Company acquired these interest rate swap contracts on July 31, 2012 as a result of the merger with PC Bancorp. All of the interest rate swap contracts acquired from PC Bancorp are with the same counterparty bank. The outstanding swaps have original maturities of up to 15 years.

The following table presents the notional amount and the fair values of the asset and liability of the Company’s derivative instruments acquired from PC Bancorp as of the dates indicated (dollars in thousands):

	Liability Derivatives
	September 30, 2015		December 31, 2014
Fair Value Hedges
Total interest rate contacts notional amount	$	26,226	$	29,289
Derivatives not designated as hedging instruments:
Interest rate swap contracts fair value	$	394	$	519
Derivatives designated as hedging instruments:
Interest rate swap contracts fair value		1,694		2,277
Total interest rate contracts fair value	$	2,088	$	2,796
Balance sheet location		Accrued Interest Payable and Other Liabilities		Accrued Interest Payable and Other Liabilities

The Effect of Derivative Instruments on the Consolidated Statements of Income

The following table summarizes the effect of all derivative financial instruments on the consolidated statements of income for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Derivatives not designated as hedging instruments:
Interest rate swap contracts – loans
Increase in fair value of interest rate swap contracts	$	41		$	86		$	124		$	179
Payments on interest rate swap contracts on loans		(66	)		(69	)		(198	)		(205	)
Net increase (decrease) in other non-interest income	$	(25	)	$	17		$	(74	)	$	(26	)
Derivatives designated as hedging instruments:
Interest rate swap contracts – loans
Increase in fair value of interest rate swap contracts	$	142		$	361		$	583		$	663
Increase (decrease) in fair value of hedged loans		191			(104	)		279			135
Payment on interest rate swap contracts on loans		(275	)		(317	)		(846	)		(950	)
Net increase (decrease) in interest income on loans	$	58		$	(60	)	$	16		$	(152	)

Under all of the Company’s interest rate swap contracts, the Company is required to pledge and maintain collateral for the credit support under these agreements. At September 30, 2015, the Company has pledged $2 million in investment securities and $3 million in certificates of deposit, for a total of $5 million, as collateral under the swap agreements.

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Level in Fair Value Hierarchy for Financial Instruments Estimated Fair Values (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available-for-sale	$ 256,085	$ 226,962
Investment securities held-to-maturity	43,422	47,159
Loans, net, Carrying Amount	1,756,382	1,612,113
Loans, net, Fair Value	1,797,338	1,627,717
Interest rate swap contracts, Carrying Amount	1,298	719
Interest rate swap contracts, Fair Value	1,298	719
Certificates of deposit, Carrying Amount	62,320	64,840
Certificates of deposit, Fair Value	62,320	64,857
Securities sold under agreements to repurchase, Carrying Amount	16,698	9,411
Securities sold under agreements to repurchase, Fair Value	16,698	9,411
Subordinated debentures, Carrying Amount	9,657	9,538
Subordinated debentures, Fair Value	12,372	12,372
Interest rate swap contracts, Carrying Amount	3,386	3,515
Interest rate swap contracts, Fair Value	3,386	3,515
Carrying (Reported) Amount, Fair Value Disclosure
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available-for-sale	256,085	226,962
Investment securities held-to-maturity, Carrying Amount	43,269	47,147
Loans, net, Carrying Amount	1,756,382	1,612,113
Interest rate swap contracts, Carrying Amount	1,298	719
Certificates of deposit, Carrying Amount	62,320	64,840
Securities sold under agreements to repurchase, Carrying Amount	16,698	9,411
Subordinated debentures, Carrying Amount	9,657	9,538
Interest rate swap contracts, Carrying Amount	3,386	3,515
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available-for-sale	256,085	226,962
Investment securities held-to-maturity	43,422	47,159
Interest rate swap contracts, Fair Value	1,298	719
Certificates of deposit, Fair Value	62,320	64,857
Securities sold under agreements to repurchase, Fair Value	16,698	9,411
Subordinated debentures, Fair Value	12,372	12,372
Interest rate swap contracts, Fair Value	3,386	3,515
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans, net, Fair Value	$ 1,797,338	$ 1,627,717

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Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest Income
Interest and fees on loans	$ 21,689	$ 12,401	$ 62,239	$ 36,691
Interest on investment securities	1,124	589	3,355	1,557
Interest on interest bearing deposits in other financial institutions	293	248	741	665
Total Interest Income	23,106	13,238	66,335	38,913
Interest Expense
Interest on interest bearing transaction accounts	105	70	303	194
Interest on money market and savings deposits	427	225	1,218	681
Interest on certificates of deposit	53	58	150	169
Interest on securities sold under agreements to repurchase	9	8	21	27
Interest on subordinated debentures	110	109	326	323
Total Interest Expense	704	470	2,018	1,394
Net Interest Income	22,402	12,768	64,317	37,519
Provision for loan losses	705	35	2,831	518
Net Interest Income After Provision For Loan Losses	21,697	12,733	61,486	37,001
Non-Interest Income
Gain on sale of SBA loans, net	640	331	1,278	936
Deposit account service charge income	1,159	631	3,453	1,891
Other non-interest income	1,189	1,042	3,960	2,750
Total Non-Interest Income	2,988	2,004	8,691	5,577
Non-Interest Expense
Salaries and employee benefits (includes stock based compensation expense of $810 and $445 for the three months, and $2,130 and $1,332 for the nine months ended September 30, 2015 and 2014, respectively)	9,744	6,066	28,175	17,886
Occupancy	1,465	999	4,300	2,970
Data processing	596	472	1,872	1,423
Legal and professional	412	456	1,914	1,390
FDIC deposit assessment	370	195	1,054	596
Merger expenses	146	631	498	1,128
OREO valuation write-downs and expenses	153	8	179	14
Office services expenses	383	219	1,204	721
Other operating expenses	1,798	985	5,696	3,150
Total Non-Interest Expense	15,067	10,031	44,892	29,278
Net Income Before Provision for Income Tax Expense	9,618	4,706	25,285	13,300
Provision for income tax expense	3,355	2,157	9,556	5,699
Net Income	6,263	2,549	15,729	7,601
Preferred stock dividends and discount accretion	293		877
Net Income available to common shareholders	$ 5,970	$ 2,549	$ 14,852	$ 7,601
Earnings Per Share
Basic earnings per share	$ 0.36	$ 0.23	$ 0.90	$ 0.70
Diluted earnings per share	$ 0.35	$ 0.23	$ 0.88	$ 0.68

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Computation of Book Value and Tangible Book Value per Common Share

9 Months Ended

Sep. 30, 2015

Text Block [Abstract]

Computation of Book Value and Tangible Book Value per Common Share

Note 4 - Computation of Book Value and Tangible Book Value per Common Share

Book value per common share was calculated by dividing total shareholders’ equity less preferred stock, by the number of common shares issued. Tangible book value per common share was calculated by dividing tangible common equity, by the number of common shares issued. The tables below present the computation of book value and tangible book value per common share as of the dates indicated (dollars in thousands, except share and per share data):

	September 30, 2015		December 31, 2014
Total Shareholders’ Equity	$	298,348	$	279,192
Less: Preferred stock		16,739		16,004
Less: Goodwill		63,950		63,950
Less: Core deposit and leasehold right intangibles		8,138		9,547
Tangible common equity	$	209,521	$	189,691
Common shares issued		16,870,936		16,683,856
Book value per common share	$	16.69	$	15.78
Tangible book value per common share	$	12.42	$	11.37

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Business Combinations

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Business Combinations

Note 3 - Business Combinations

On November 30, 2014, the Company completed the merger with 1st Enterprise Bank (“1st Enterprise”) pursuant to the terms of the Agreement and Plan of Merger dated June 2, 2014, as amended (“Merger Agreement”). 1st Enterprise was merged with and into the Bank, with the Bank continuing as the surviving entity in the merger. Pursuant to the terms and conditions set forth in the Merger Agreement, each outstanding share of 1st Enterprise common stock (other than shares as to which the holder exercised dissenters’ rights) was converted into the right to receive 1.3450 of a share of CU Bancorp common stock, resulting in five million shares of CU Bancorp common stock issued. The fair value of the five million shares of common stock issued as part of the consideration paid ($103 million) was determined based on the closing market price ($19.60) of CU Bancorp common stock on November 30, 2014. The 16,400 shares of 1st Enterprise Non-Cumulative Perpetual Preferred Stock, Series D were converted into the right to receive 16,400 shares of CU Bancorp’s Non-Cumulative Perpetual Preferred Stock, Series A (“CU Bancorp Preferred Stock”). The U.S. Department of the Treasury is the sole holder of all outstanding shares of CU Bancorp Preferred Stock. As part of the Merger Agreement, CU Bancorp adopted the 1st Enterprise 2006 Stock Incentive Plan, as amended, as its own equity plan and all stock options granted by 1st Enterprise thereunder are exercisable for CU Bancorp common stock on substantially the same terms but adjusted to reflect the exchange ratio set forth in the Merger Agreement. See Note 16—Stock Options and Restricted Stock, in the Company’s 2014 Form 10-K, for more details. The merger was accounted for by the Company using the acquisition method of accounting. Accordingly, the assets and liabilities of 1st Enterprise were recorded at their respective fair values at acquisition date and represents management’s estimates based on available information.

In connection with the merger, the consideration paid, the assets acquired, and the liabilities assumed were recorded at fair value on the date of acquisition, as summarized in the following table (dollars in thousands):

	November 30, 2014
Assets acquired:
Cash and due from banks	$	8,739
Interest earning deposits in other financial institutions		11,554
Investment securities available-for-sale		117,407
Investment securities held-to-maturity		47,457
Loans		553,183
Premises and equipment, net		1,830
Deferred tax asset		5,682
Goodwill		51,658
Core deposit and leasehold right intangibles		7,533
Bank owned life insurance		16,871
Accrued interest receivable and other assets		11,583
Total assets acquired	$	833,497
Liabilities assumed:
Deposits	$	703,358
Accrued interest payable and other liabilities		1,856
Total liabilities assumed	$	705,214
Total consideration paid:
CU Bancorp common stock issued	$	102,712
CU Bancorp preferred stock issued		15,921
Fair value of 1st Enterprise stock options		9,561
Cash paid to a dissenter shareholder		87
Cash in lieu of fractional shares paid to 1st Enterprise shareholders		2
Total Consideration	$	128,283

1st Enterprise operated as a full-service independent commercial banking institution in the Southern California market with three branches located in downtown Los Angeles, Orange County and the Inland Empire and a loan production office in the San Fernando Valley. 1st Enterprise and the Bank had complementary business models and both had developed strong commercial banking platforms and production capabilities, low-cost deposit bases and robust credit cultures.

The Company expensed approximately $146,000 of merger expenses for the three months ended September 30, 2015 and $631,000 for the three months ended September 30, 2014. For the nine months ended September 30, 2015 and September 30, 2014, the Company expensed approximately $498,000 and $1 million of merger expenses, respectively.

The other intangible assets are primarily related to core deposits and are being amortized on an accelerated basis over a period of approximately ten years in proportion to the related estimated benefits. The assets and liabilities of 1st Enterprise were accounted for at fair value and required either a third party analysis or an internal valuation analysis of fair value. An analysis was performed on loans, investment securities, contractual lease obligations, deferred compensation, deposits, premises and equipment, other assets, other liabilities and preferred stock as of the merger date. Balances that were considered to be at fair value at the date of acquisition were cash and cash equivalents, bank owned life insurance, derivatives, other assets (interest receivable), and certain other liabilities (interest payable). The Company made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. Such fair values are preliminary estimates and are subject to adjustment for up to one year after the merger date. For tax purposes, acquisition accounting adjustments, including goodwill, are not taxable or deductible.

The Company estimated the fair value for most loans acquired from 1^st Enterprise by utilizing a methodology wherein loans with comparable characteristics were aggregated by type of collateral, whether loans are fixed, adjustable, interest only or have balloon structures. Other considerations included risk ratings, delinquency history, performance status (accrual or non-accrual) and other relevant factors. The discounted cash flow approach (“DCF”) was used to arrive at the fair value of the loans acquired. Projected cash flows were determined by estimating future credit losses and prepayment rates, which were then discounted to present value at a risk-adjusted discount rate for similar loans.

There was no carryover of 1^st Enterprise’s allowance for loan losses associated with the loans acquired as the loans were initially recorded at fair value.

Purchased Credit Impaired (“PCI”) loans are accounted for under ASC 310-30 and non-PCI loans are accounted for under ASC 310-20. PCI loans are acquired loans with evidence of deterioration of credit quality since origination and it is probable at the acquisition date, that the Company will not be able to collect all contractually required amounts. When the timing and/or amounts of expected cash flows on such loans are not reasonably estimable, no interest is accreted and the loan is reported as a non-accrual loan; otherwise, if the timing and amounts of expected cash flows for PCI loans are reasonably estimable, then interest is accreted and the loans are reported as accruing loans. The non-accretable difference represents the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows, and also reflects the estimated credit losses in the acquired loan portfolio at the acquisition date, which can fluctuate due to changes in expected cash flows during the life of the PCI loans.

The following table presents the fair value of loans pursuant to accounting standards for PCI and non-PCI loans as of the 1^st Enterprise acquisition date (dollars in thousands):

	November 30, 2014
	PCI loans			Non-PCI loans			Total
Contractually required payments	$	577		$	569,276		$	569,853
Less: non-accretable difference		(108	)		—			(108	)
Cash flows expected to be collected (undiscounted)		469			569,276			569,745
Accretable yield		—			(16,562	)		(16,562	)
Fair value of acquired loans	$	469		$	552,714		$	553,183

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Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Note 15 - Fair Value of Assets and Liabilities

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including both those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis and a non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value, and for estimating the fair value of financial assets and financial liabilities not recorded at fair value, are discussed below.

In accordance with accounting guidance, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are as follows:

• Level 1 – Observable unadjusted quoted market prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

• Level 2 – Significant other observable market based inputs, other than Level 1 prices such as quoted prices for similar assets or liabilities or unobservable inputs that are corroborated by market data. This includes quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data, either directly or indirectly. This would include those financial instruments that are valued using models or other valuation methodologies where substantially all of the assumptions are observable in the marketplace, can be derived from observable market data or are supported by observable levels at which transactions are executed in the marketplace.

• Level 3 – Significant unobservable inputs that reflect a reporting entity’s evaluation about the assumptions that market participants would use in pricing an asset or liability. Assets measured utilizing level 3 are for positions that are not traded in active markets or are subject to transfer restrictions, and or where valuations are adjusted to reflect illiquidity and or non-transferability. These assumptions are not corroborated by market data. This is comprised of financial instruments whose fair value is estimated based on internally developed models or methodologies utilizing significant inputs that are generally less readily observable from objective sources. Management uses a combination of reviews of the underlying financial statements, appraisals and management’s judgment regarding credit quality to determine the value of the financial asset or liability.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Management maximizes the use of observable inputs and attempts to minimize the use of unobservable inputs when determining fair value measurements. The following is a description of both the general and specific valuation methodologies used for certain instruments measured at fair value, as well as the general classification of these instruments pursuant to the valuation hierarchy.

Investment Securities Available-for-Sale and Held-to-Maturity: The fair value of securities available-for-sale and held-to-maturity may be determined by obtaining quoted prices in active markets, when available, from nationally recognized securities exchanges (Level 1 financial assets). If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique widely used in the securities industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities which are observable market inputs (Level 2 financial assets). Debt securities’ pricing is generally obtained from one of the matrix pricing models developed from one of the three national pricing agencies. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3 financial assets.

Securities classified as available-for-sale are accounted for at their current fair value rather than amortized historical cost. Unrealized gains or losses are excluded from net income and reported as an amount net of taxes as a separate component of accumulated other comprehensive income included in shareholders’ equity. Securities classified as held-to-maturity are accounted for at their amortized historical cost.

The Company considers the inputs utilized to fair value the U.S. Agency and U.S. Sponsored Agency issued debt securities (callable and non-callable notes), mortgage backed securities guaranteed by those agencies, collateralized mortgage obligations issued by those agencies, corporate bond securities, and municipal securities to be observable market inputs and classified these financial assets within the Level 2 fair value hierarchy. Management bases the fair value for these investments primarily on third party price indications provided by independent pricing sources utilized by the Company’s bond accounting system to obtain market pricing on its individual securities. Vining Sparks, who provides the Company with its bond accounting system, utilizes pricing from three independent third party pricing sources for pricing of securities. These third party pricing sources utilize, quoted market prices or when quoted market prices are not available, then fair values are estimated using nationally recognized third-party vendor pricing models of which the inputs are observable. However, the fair value reported may not be indicative of the amounts that could be realized in an actual market exchange.

The fair value of the Company’s U.S. Agency and U.S. Sponsored Agency callable and non-callable agency securities, mortgage backed securities guaranteed by those agencies, and collateralized mortgage obligations issued by those agencies, corporate bond securities, and municipal securities are calculated using an option adjusted spread model from one of the nationally recognized third-party pricing models. Depending on the assumptions used and the treasury yield curve and other interest rate assumptions, the fair value could vary significantly in the near term.

Loans: The fair value for loans is estimated by discounting the expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities, adjusted for the allowance for loan loss. Loans are segregated by type such as commercial and industrial, commercial real estate, construction and other loans with similar credit characteristics and are further segmented into fixed and variable interest rate loan categories. Expected future cash flows are projected based on contractual cash flows, adjusted for estimated prepayments. The inputs utilized in determining the fair value of loans are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy.

Impaired Loans: The fair value of impaired loans is determined based on an evaluation at the time the loan is originally identified as impaired, and periodically thereafter, at the lower of cost or fair value. Fair value on impaired loans is measured based on the value of the collateral securing these loans, less costs to sell, if the loan is collateral dependent, or based on the discounted cash flows for non collateral dependent loans. Collateral on collateral dependent loans may be real estate and/or business assets including equipment, inventory and/or accounts receivable and is determined based on appraisals performed by qualified licensed appraisers hired by the Company. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Such discounts are typically significant and unobservable. For unsecured loans, the estimated future discounted cash flows of the business or borrower, are used in evaluating the fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. The inputs utilized in determining the fair value of impaired loans are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy.

Interest Rate Swap Contracts: The fair value of the interest rate swap contracts are provided by independent third party vendors that specializes in interest rate risk management and fair value analysis using a model that utilizes current market data to estimate cash flows of the interest rate swaps utilizing the future London Interbank Offered Rate (“LIBOR”) yield curve for accruing and the future Overnight Index Swap Rate (“OIS”) yield curve for discounting through the maturity date of the interest rate swap contract. The future LIBOR yield curve is the primary input in the valuation of the interest rate swap contracts. Both the LIBOR and OIS yield curves are readily observable in the marketplace. Accordingly, the interest rate swap contracts are classified within Level 2 of the fair value hierarchy.

Other Real Estate Owned: The fair value of other real estate owned is generally based on real estate appraisals (unless more current market information is available) less estimated costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant. The inputs utilized in determining the fair value of other real estate owned are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy.

SBA Servicing Asset: The Company acquired an SBA servicing asset with the PC Bancorp merger and has added to the servicing asset with the sale of SBA loans subsequent to the merger. This servicing asset was initially fair valued at the merger date based on an evaluation by a third party who specializes in fair value analysis. The fair value of this asset was based on the estimated discounted future cash flows utilizing market based discount rates and estimated prepayment speeds. The discount rate was based on the current U.S. Treasury yield curve, plus a spread for marketplace risk associated with these assets. Prepayment speeds were selected based on the historical prepayments of similar SBA pools. The prepayment speeds determine the timing of the cash flows. The SBA servicing asset is amortized over the estimated life of the loans based on an effective yield approach. In addition, the Company’s servicing asset is evaluated regularly for impairment by discounting the estimated future cash flows using market-based discount rates and prepayment speeds. If the calculated present value of the servicing asset declines below the Company’s current carrying value, the servicing asset is written down to its present value. Based on the Company’s methodology in its valuation of the SBA servicing asset, the current carrying value is estimated to approximate the fair value. The inputs utilized in determining the fair value of SBA servicing asset are unobservable and accordingly, these financial assets are classified within Level 3 of the fair value hierarchy.

Non-Maturing Deposits: The fair values for non-maturing deposits (deposits with no contractual termination date), which include non-interest bearing demand deposits, interest bearing transaction accounts, money market deposits and savings accounts are equal to their carrying amounts, which represent the amounts payable on demand. Because the carrying value and fair value are by definition identical, and accordingly non-maturity deposits are classified within Level 1 of the fair value hierarchy, these balances are not listed in the following tables.

Maturing Deposits: The fair values of fixed maturity certificates of deposit (time deposits) are estimated using a discounted cash flow calculation that applies current market deposit interest rates to the Company’s current certificates of deposit interest rates for similar term certificates. The inputs utilized in determining the fair value of maturing deposits are observable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy.

Securities Sold under Agreements to Repurchase (“Repos”): The fair value of securities sold under agreements to repurchase is estimated based on the discounted value of future cash flows expected to be paid on the deposits. The carrying amounts of Repos with maturities of 90 days or less approximate their fair values. The fair value of Repos with maturities greater than 90 days is estimated based on the discounted value of the contractual future cash flows. The inputs utilized in determining the fair value of securities sold under agreements to repurchase are observable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy.

Subordinated Debentures: The fair value of the three variable rate subordinated debentures (“debentures”) is estimated using a discounted cash flow calculation that applies the three month LIBOR plus the margin index at September 30, 2015, to the cash flows from the debentures, based on the actual interest rate the debentures were accruing at September 30, 2015. Because all three of the debentures re-priced on September 11, 2015 based on the current three month LIBOR index rate plus the index margin at that date, and with relatively little to no change in the three month LIBOR index rate from the re-pricing date through September 30, 2015, the current face value of the debentures and their calculated fair value are approximately equal. The inputs utilized in determining the fair value of subordinated debentures are observable and accordingly, these financial liabilities are classified within Level 2 of the fair value hierarchy.

Fair Value of Commitments: Loan commitments that are priced on an index plus a margin to a market rate of interest are reported at the carrying value of the loan commitment. Loan commitments on which the committed fixed interest rate is less than the current market rate were insignificant at September 30, 2015 and December 31, 2014.

Interest Rate Risk: The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. In addition, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall rate risk.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the financial assets and financial liabilities measured at fair value on a recurring basis as of the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets – September 30, 2015
Investment securities available-for-sale	$	256,085	$	—	$	256,085	$	—
Interest Rate Swap Contracts		1,298		—		1,298		—
Financial Liabilities – September 30, 2015
Interest Rate Swap Contracts	$	3,386	$	—	$	3,386	$	—
Financial Assets – December 31, 2014
Investment securities available-for-sale	$	226,962	$	—	$	226,962	$	—
Interest Rate Swap Contracts		719		—		719		—
Financial Liabilities – December 31, 2014
Interest Rate Swap Contracts	$	3,515	$	—	$	3,515	$	—

At December 31, 2014 and at September 30, 2015 the Company had no financial assets or liabilities that were measured at fair value on a recurring basis that required the use of significant unobservable inputs (Level 3). Additionally, there were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a recurring basis for the three months and nine months ended September 30, 2015 and 2014.

Assets Measured at Fair Value on a Non-recurring Basis

The Company may be required periodically, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of or during the period.

There were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a non-recurring basis for the three and nine months ended September 30, 2015.

The following table presents the balances of assets and liabilities measured at fair value on a non-recurring basis by caption and by level within the fair value hierarchy as of the dates indicated (dollars in thousands):

	Recorded Investment Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets – September 30, 2015
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans)	$	751	$	—	$	—	$	751
Other real estate owned		1,292		—		—		1,292
Total	$	2,043	$	—	$	—	$	2,043
Financial Assets – December 31, 2014
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-offs (non-purchased credit impaired loans)	$	1,172	$	—	$	—	$	1,172
Other real estate owned		850		—		—		850
Total	$	2,022	$	—	$	—	$	2,022

The following table presents the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of the dates indicated (dollars in thousands):

	Fair Value		Valuation Methodology	Valuation Model and/or Factors	Unobservable Input Values
Financial Assets – September 30, 2015
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off	$	751	Credit loss estimate of aged accounts receivable collateral	Credit loss factors on aging of accounts receivable collateral	20%-80%
				Estimated selling costs	16%
Other real estate owned		1,292	Commercial real estate appraisal; Executed sale contract	Sales approach Estimated selling costs	6%
Total	$	2,043
Financial Assets – December 31, 2014
Collateral dependent impaired loans with specific valuation allowance and/or partial charge-off	$	1,172	Credit loss estimate of aged accounts receivable collateral	Credit loss factors on aging of accounts receivable collateral	10%-80%
				Estimated selling costs	15%
Other real estate owned		850	Residential real estate appraisal	Sales approach Estimated selling costs	6%
Total	$	2,022

Fair Value of Financial Assets and Liabilities

ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or on a non-recurring basis. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company could have realized in a current market exchange as of September 30, 2015 and December 31, 2014. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The description of the valuation methodologies used for assets and liabilities measured at fair value and for estimating fair value for financial instruments not recorded at fair value has been described above.

The table below presents the carrying amounts and fair values of financial instruments based on their fair value hierarchy indicated (dollars in thousands):

					Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2015
Financial Assets
Investment securities available-for-sale	$	256,085		256,085	$	—	$	256,085	$	—
Investment securities held-to-maturity		43,269		43,422		—		43,422		—
Loans, net		1,756,382		1,797,338		—		—		1,797,338
Interest rate swap contracts		1,298		1,298		—		1,298		—
Financial Liabilities
Certificates of deposit		62,320		62,320		—		62,320		—
Securities sold under agreements to repurchase		16,698		16,698		—		16,698		—
Subordinated debentures		9,657		12,372		—		12,372		—
Interest rate swap contracts		3,386		3,386		—		3,386		—
December 31, 2014
Financial Assets
Investment securities available-for-sale	$	226,962		226,962	$	—	$	226,962	$	—
Investment securities held-to-maturity		47,147		47,159		—		47,159		—
Loans, net		1,612,113		1,627,717		—		—		1,627,717
Interest rate swap contracts		719		719		—		719		—
Financial Liabilities
Certificates of deposit		64,840		64,857		—		64,857		—
Securities sold under agreements to repurchase		9,411		9,411		—		9,411		—
Subordinated debentures		9,538		12,372		—		12,372		—
Interest rate swap contracts		3,515		3,515		—		3,515		—

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Balance Sheet Offsetting

9 Months Ended

Sep. 30, 2015

Text Block [Abstract]

Balance Sheet Offsetting

Note 11 – Balance Sheet Offsetting

Assets and liabilities relating to certain financial instruments, including derivatives, and securities sold under repurchase agreements (“Repos”), may be eligible for offset in the consolidated balance sheets as permitted under accounting guidance. The Company’s interest rate swap derivatives are subject to a master bilateral netting and offsetting arrangement under specific conditions as defined within a master agreement governing all interest rate swap contracts that the Company and the counterparty banks have entered into. In addition, the master agreement under which the interest rate contracts have been written require the pledging of assets by the Company based on certain risk thresholds. The Company has pledged a certificate of deposit and investment securities as collateral under the swap agreements. The pledged collateral under the swap agreements are reported in the Company’s consolidated balance sheets, unless the Company defaults under the master agreement. The Company currently does not net or offset the interest rate swap contracts in its consolidated balance sheets, as reflected within the table below.

The Company’s securities sold under repurchase agreements represent transactions the Company has entered into with several deposit customers. These transactions represent the sale of securities on an overnight or on a term basis to our deposit customers under an agreement to repurchase the securities from the customers the next business day or at maturity. There is an individual contract for each customer with only one transaction per customer. There is no master agreement that provides for the netting arrangement or the offsetting of these individual transactions or for the netting of collateral positions. The Company does not net or offset the Repos in its consolidated balance sheets as reflected within the table below.

The table below presents the Company’s financial instruments that may be eligible for offsetting which include securities sold under agreements to repurchase that have no enforceable master netting arrangement and derivative securities that could be offset in the consolidated financial statements due to an enforceable master netting arrangement (dollars in thousands):

	Gross Amounts Recognized in the Consolidated Balance Sheets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets				Net Amount (Collateral over liability balance required to be pledged)
							Financial Instruments		Collateral Pledged
September 30, 2015
Financial Assets:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	1,298	$	—	$	1,298	$	1,298	$	—	$	—
Total	$	1,298	$	—	$	1,298	$	1,298	$	—	$	—
Financial Liabilities:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	3,386	$	—	$	3,386	$	3,386	$	4,306	$	920
Securities sold under agreements to repurchase (See Note 9 – Borrowings and Subordinated Debentures)		16,698		—		16,698		16,698		49,139		32,441
Total	$	20,084	$	—	$	20,084	$	20,084	$	53,445	$	33,361

	Gross Amounts Recognized in the Consolidated Balance Sheets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets				Net Amount (Collateral over liability balance required to be pledged)
							Financial Instruments		Collateral Pledged
December 31, 2014
Financial Assets:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	719	$	—	$	719	$	719	$	—	$	—
Total	$	719	$	—	$	719	$	719	$	—	$	—
Financial Liabilities:
Interest rate swap contracts fair value (See Note 10 – Derivative Financial Instruments)	$	3,515	$	—	$	3,515	$	3,515	$	4,150	$	635
Securities sold under agreements to repurchase (See Note 9 – Borrowings and Subordinated Debentures)		9,411		—		9,411		9,411		32,304		22,893
Total	$	12,926	$	—	$	12,926	$	12,926	$	36,454	$	23,528

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Loans

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans

Note 7 - Loans

The following table presents the composition of the Company’s loan portfolio as of the dates indicated (dollars in thousands):

	September 30, 2015		December 31, 2014
Commercial and Industrial Loans:	$	556,462	$	528,517
Loans Secured by Real Estate:
Owner-Occupied Nonresidential Properties		376,579		339,309
Other Nonresidential Properties		515,402		481,517
Construction, Land Development and Other Land		94,353		72,223
1-4 Family Residential Properties		125,635		121,985
Multifamily Residential Properties		65,275		52,813
Total Loans Secured by Real Estate		1,177,244		1,067,847
Other Loans:		37,641		28,359
Total Loans	$	1,771,347	$	1,624,723

The following table is a breakout of the Company’s loan portfolio stratified by the industry concentration of the borrower by their respective NAICS code as of the dates indicated (dollars in thousands):

	September 30, 2015		December 31, 2014
Real Estate	$	811,868	$	744,663
Manufacturing		167,152		161,233
Wholesale		129,952		124,336
Construction		154,085		113,763
Finance		113,956		96,074
Hotel/Lodging		101,239		88,269
Professional Services		53,147		64,215
Other Services		47,041		45,781
Healthcare		47,359		43,917
Retail		36,777		35,503
Administrative Management		26,164		28,016
Restaurant/Food Service		31,884		24,525
Transportation		21,596		18,158
Information		8,756		15,457
Education		9,192		10,253
Entertainment		5,610		8,284
Other		5,569		2,276
Total	$	1,771,347	$	1,624,723

SBA Loans

As part of the acquisition of PC Bancorp, the Company acquired loans that were originated under the guidelines of the Small Business Administration (“SBA”) program. The total portfolio of the SBA contractual loan balances being serviced by the Company at September 30, 2015 was $109 million, of which $77 million has been sold. Of the $32 million remaining on the Company’s books, $25 million is un-guaranteed and $7 million is guaranteed by the SBA.

For SBA guaranteed loans, a secondary market exists to purchase the guaranteed portion of these loans with the Company continuing to “service” the entire loan. The secondary market for guaranteed loans is comprised of investors seeking long term assets with yields that adapt to the prevailing interest rates. These investors are typically financial institutions, insurance companies, pension funds, and other types of investors specializing in the acquisition of this product. When a decision to sell the guaranteed portion of an SBA loan is made by the Company, bids are solicited from secondary market investors and the loan is normally sold to the highest bidder.

At September 30, 2015, there were no loans classified as held for sale. At September 30, 2015, the balance of SBA 7a loans originated during the quarter is $2 million, of which $1 million is guaranteed by the SBA. The Company does not currently plan on selling these loans, but it may choose to do so in the future.

Allowance for Loan Loss

The following table is a summary of the activity for the allowance for loan loss for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Allowance for loan loss at beginning of period	$	14,124		$	11,284		$	12,610		$	10,603
Provision for loan losses		705			35			2,831			518
Net (charge-offs) recoveries:
Charge-offs		(42	)		(8	)		(933	)		(165	)
Recoveries		178			37			457			392
Net (charge-offs) recoveries		136			29			(476	)		227
Allowance for loan loss at end of period	$	14,965		$	11,348		$	14,965		$	11,348
Net (charge-offs) recoveries to average loans		0.01	%		0.00	%		(0.03	)%		(0.02	)%

	September 30, 2015			December 31, 2014
Allowance for loan loss to total loans		0.84	%		0.78	%
Allowance for loan loss to total loans accounted for at historical cost, which excludes loans and the related allowance for loans acquired through acquisition		1.30	%		1.39	%

The allowance for losses on unfunded loan commitments to extend credit is primarily related to commercial lines of credit and construction loans. The amount of unfunded loan commitments at September 30, 2015 and December 31, 2014 was $765 million and $720 million, respectively. The inherent risk associated with a loan is evaluated at the same time the credit is extended. However, the allowance held for the commitments is reported in other liabilities within the accompanying consolidated balance sheets and not as part of the allowance for loan loss in the above table. The allowance for losses on unfunded loan commitments to extend credit was $561,000 and $471,000 at September 30, 2015 and December 31, 2014, respectively.

The following tables present, by portfolio segment, the changes in the allowance for loan loss and the recorded investment in loans as of the dates and for the periods indicated (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land			Commercial and Other Real Estate			Other		Total
Three Months Ended September 30, 2015
Allowance for loan loss – Beginning balance	$	6,244	$	1,607		$	5,799		$	474	$	14,124
Provision for loan losses		181		371			143			10		705
Net (charge-offs) recoveries:
Charge-offs		—		—			(42	)		—		(42	)
Recoveries		177		—			1			—		178
Net (charge offs) recoveries		177		—			(41	)		—		136
Ending balance	$	6,602	$	1,978		$	5,901		$	484	$	14,965
Three Months Ended September 30, 2014
Allowance for loan loss – Beginning balance	$	5,385	$	1,422		$	4,426		$	51	$	11,284
Provision for loan losses		333		(205	)		(429	)		336		35
Net (charge-offs) recoveries:
Charge-offs		—		—			(8	)		—		(8	)
Recoveries		36		—			1			—		37
Net (charge-offs) recoveries		36		—			(7	)		—		29
Ending balance	$	5,754	$	1,217		$	3,990		$	387	$	11,348

	Commercial and Industrial			Construction, Land Development and Other Land		Commercial and Other Real Estate			Other		Total
Nine Months Ended September 30, 2015
Allowance for loan loss – Beginning balance	$	5,864		$	1,684	$	4,802		$	260	$	12,610
Provision for loan losses		1,176			294		1,137			224		2,831
Net (charge-offs) recoveries:
Charge-offs		(891	)		—		(42	)		—		(933	)
Recoveries		453			—		4			—		457
Net (charge-offs) recoveries		(438	)		—		(38	)		—		(476	)
Ending balance	$	6,602		$	1,978	$	5,901		$	484	$	14,965
Nine Months Ended September 30, 2014
Allowance for loan loss – Beginning balance	$	5,534		$	1,120	$	3,886		$	63	$	10,603
Provision for loan losses		25			97		72			324		518
Net (charge-offs) recoveries:
Charge-offs		(93	)		—		(72	)		—		(165	)
Recoveries		288			—		104			—		392
Net (charge-offs) recoveries		195			—		32			—		227
Ending balance	$	5,754		$	1,217	$	3,990		$	387	$	11,348

The following tables present both the allowance for loan loss and the associated loan balance classified by loan portfolio segment and by credit evaluation methodology (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
September 30, 2015
Allowance for loan loss:
Individually evaluated for impairment	$	577	$	—	$	—	$	—	$	577
Collectively evaluated for impairment		6,025		1,978		5,901		484		14,388
Purchased credit impaired (loans acquired with deteriorated credit quality)		—		—		—		—		—
Total Allowance for Loan Loss	$	6,602	$	1,978	$	5,901	$	484	$	14,965
Loans receivable:
Individually evaluated for impairment	$	3,446	$	—	$	99	$	—	$	3,545
Collectively evaluated for impairment		552,634		94,353		1,081,258		37,641		1,765,886
Purchased credit impaired (loans acquired with deteriorated credit quality)		382		—		1,534		—		1,916
Total Loans Receivable	$	556,462	$	94,353	$	1,082,891	$	37,641	$	1,771,347

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
December 31, 2014
Allowance for loan loss:
Individually evaluated for impairment	$	222	$	—	$	—	$	—	$	222
Collectively evaluated for impairment		5,642		1,684		4,802		260		12,388
Purchased credit impaired (loans acquired with deteriorated credit quality)		—		—		—		—		—
Total Allowance for Loan Loss	$	5,864	$	1,684	$	4,802	$	260	$	12,610
Loans receivable:
Individually evaluated for impairment	$	1,914	$	—	$	737	$	—	$	2,651
Collectively evaluated for impairment		525,910		72,223		993,195		28,359		1,619,687
Purchased credit impaired (loans acquired with deteriorated credit quality)		693		—		1,692		—		2,385
Total Loans Receivable	$	528,517	$	72,223	$	995,624	$	28,359	$	1,624,723

Credit Quality of Loans

The Company utilizes an internal loan classification system as a means of reporting problem and potential problem loans. Under the Company’s loan risk rating system, loans are classified as “Pass,” with problem and potential problem loans as “Special Mention,” “Substandard,” “Doubtful” and “Loss”. Individual loan risk ratings are updated continuously or at any time the situation warrants. In addition, management regularly reviews problem loans to determine whether any loan requires a classification change, in accordance with the Company’s policy and applicable regulations. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The internal loan classification risk grading system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

• Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. There are several different levels of Pass rated credits, including “Watch” which is considered a transitory grade for pass rated loans that require greater monitoring. Loans not meeting the criteria of special mention, substandard, doubtful or loss that have been analyzed individually as part of the above described process are considered to be pass-rated loans.

• Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. Special Mention loans do not currently expose the Company to sufficient risk to warrant classification as a Substandard, Doubtful or Loss classification, but possess weaknesses that deserve management’s close attention.

• Substandard – loans that have a well-defined weakness based on objective evidence and can be characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

• Doubtful – loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

• Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

The following tables present the risk category of loans by class of loans based on the most recent internal loan classification as of the dates indicated (dollars in thousands):

	Commercial and Industrial		Construction, Land Development and Other Land		Commercial and Other Real Estate		Other		Total
September 30, 2015
Pass	$	527,311	$	94,353	$	1,054,807	$	37,640	$	1,714,111
Special Mention		11,862		—		8,103		—		19,965
Substandard		17,289		—		19,981		1		37,271
Doubtful		—		—		—		—		—
Total	$	556,462	$	94,353	$	1,082,891	$	37,641	$	1,771,347
December 31, 2014
Pass	$	502,624	$	72,223	$	977,525	$	28,358	$	1,580,730
Special Mention		8,738		—		4,878		—		13,616
Substandard		17,155		—		13,221		1		30,377
Doubtful		—		—		—		—		—
Total	$	528,517	$	72,223	$	995,624	$	28,359	$	1,624,723

Age Analysis of Past Due and Non-Accrual Loans

The following tables present an aging analysis of the recorded investment of past due loans and non-accrual loans as of the dates indicated (dollars in thousands):

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Accruing		Total Past Due and Accruing		Total Non- Accrual		Current		Total Loans
September 30, 2015
Commercial and Industrial	$	85	$	11	$	—	$	96	$	3,826	$	552,540	$	556,462
Construction, Land Development and Other Land		—		—		—		—		—		94,353		94,353
Commercial and Other Real Estate		—		391		—		391		478		1,082,022		1,082,891
Other		—		—		—		—		—		37,641		37,641
Total	$	85	$	402	$	—	$	487	$	4,304	$	1,766,556	$	1,771,347

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Accruing		Total Past Due and Accruing		Total Non- Accrual		Current		Total Loans
December 31, 2014
Commercial and Industrial	$	192	$	233	$	—	$	425	$	2,604	$	525,488	$	528,517
Construction, Land Development and Other Land		—		—		—		—		—		72,223		72,223
Commercial and Other Real Estate		354		—		—		354		1,305		993,965		995,624
Other		—		—		—		—		—		28,359		28,359
Total	$	546	$	233	$	—	$	779	$	3,909	$	1,620,035	$	1,624,723

Impaired Loans

Impaired loans are evaluated by comparing the fair value of the collateral, if the loan is collateral dependent, and the present value of the expected future cash flows discounted at the loan’s effective interest rate, if the loan is not collateral dependent.

A valuation allowance is established for an impaired loan when the realizable value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are charged-off to realizable value instead of establishing a valuation allowance and are included, when applicable, in the table below as impaired loans “with no specific allowance recorded.” The valuation allowance disclosed below is included in the allowance for loan loss reported in the consolidated balance sheets as of September 30, 2015 and December 31, 2014.

The following tables present, by loan category, the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, for the dates and periods indicated (dollars in thousands). This table excludes purchased credit impaired loans (loans acquired in acquisitions with deteriorated credit quality) of $3 million and $2 million at September 30, 2015 and December 31, 2014, respectively.

	September 30, 2015						December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no specific allowance recorded:
Commercial and Industrial	$	2,118	$	3,629	$	—	$	520	$	609	$	—
Commercial and Other Real Estate		99		105		—		737		739		—
						—
With a specific allowance recorded:
Commercial and Industrial		1,328		1,479		577		1,394		1,546		222
Total
Commercial and Industrial		3,446		5,108		577		1,914		2,155		222
Commercial and Other Real Estate		99		105		—		737		739		—
Total	$	3,545	$	5,213	$	577	$	2,651	$	2,894	$	222

	Three Months Ended September 30,								Nine Months Ended September 30,
	2015				2014				2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no specific allowance recorded:
Commercial and Industrial	$	2,118	$	—	$	1,051	$	—	$	1,757	$	—	$	1,035	$	34
Commercial and Other Real Estate		99		—		2,960		—		104		—		3,207		—
With a specific allowance recorded:
Commercial and Industrial		1,328		—		1,494		—		1,328		—		1,533		—
Commercial and Other Real Estate		413				—		—		550				—		—
Total:
Commercial and Industrial		3,446		—		2,545		—		3,085		—		2,568		34
Commercial and Other Real Estate		512		—		2,960		—		654		—		3,207		—
Total	$	3,958	$	—	$	5,505	$	—	$	3,739	$	—	$	5,775	$	34

The following is a summary of additional information pertaining to impaired loans for the periods indicated (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Interest foregone on impaired loans	$	81	$	72	$	238	$	346
Cash collections applied to reduce principal balance	$	23	$	18	$	186	$	2,889
Interest income recognized on cash collections	$	—	$	—	$	—	$	34

Troubled Debt Restructuring

The Company’s loan portfolio contains certain loans that have been modified in a Troubled Debt Restructuring (“TDR”), where economic concessions have been granted to borrowers experiencing financial difficulties. Loans are restructured in an effort to maximize collections. Economic concessions can include: reductions to the interest rate, payment extensions, forgiveness of principal or other actions.

The modification process includes evaluation of impairment based on the present value of expected future cash flows, discounted at the effective interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the loan collateral. In these cases, management uses the current fair value of the collateral, less selling costs, to evaluate the loan for impairment. If management determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs and unamortized premium or discount), impairment is recognized through a specific allowance or a charge-off.

The following tables include the recorded investment and unpaid principal balances for troubled debt restructured loans at September 30, 2015 and December 31, 2014 (dollars in thousands). These tables include TDR loans that were purchased credit impaired (“PCI”). As of September 30, 2015, there were two PCI loans that are considered to be TDR loans with a recorded investment of $161,000 and unpaid principal balances of $344,000.

	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized
As of and for the period ended September 30, 2015
Commercial and Industrial	$	1,780	$	2,385	$	—
Commercial and Other Real Estate		99		105		—
Total	$	1,879	$	2,490	$	—

	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized
As of and for the year ended December 31, 2014
Commercial and Industrial	$	530	$	719	$	—
Commercial and Other Real Estate		114		115		—
Total	$	644	$	834	$	—

The following table shows the pre- and post-modification recorded investment in TDR loans by loan segment that have occurred during the periods indicated (dollars in thousands):

	Three Months Ended September 30,
	2015						2014
	Number of Loans		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Troubled Debt Restructured Loans:
Commercial and Industrial		3	$	1,335	$	1,335		—	$	—	$	—
Total		3	$	1,335	$	1,335		—	$	—	$	—

	Nine Months Ended September 30,
	2015						2014
	Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Troubled Debt Restructured Loans:
Commercial and Industrial		3	$	1,335	$	1,335		1	$	224	$	224
Total		3	$	1,335	$	1,335		1	$	224	$	224

There was no interest income recognized for the above troubled debt restructured loans during the three months and nine months ended September 30, 2015 or September 30, 2014.

Three loans were modified or restructured during the three and nine months ended September 30, 2015. There were no loans restructured during the three months ended September 30, 2014. One loan was modified or restructured during the nine months ended September 30, 2014.

Loans are restructured in an effort to maximize collections. Impairment analyses are performed on the Company’s troubled debt restructured loans in conjunction with the normal allowance for loan loss process. The Company’s troubled debt restructured loans are analyzed to ensure adequate cash flow or collateral supports the outstanding loan balance.

There have been no payment defaults in nine months ended September 30, 2015 or September 30, 2014 subsequent to modification on troubled debt restructured loans that have been modified within the last twelve months.

Loans Acquired Through Acquisition

The following table reflects the accretable net discount for loans acquired through acquisition, for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Balance, beginning of period	$	18,255		$	6,412		$	21,402		$	7,912
Accretion, included in interest income		(1,463	)		(813	)		(4,140	)		(2,264	)
Reclassifications (to) from non-accretable yield		(5	)		—			(475	)		(49	)
Balance, end of period	$	16,787		$	5,599		$	16,787		$	5,599

The above table reflects the fair value adjustment on the loans acquired from mergers that will be amortized to loan interest income based on the effective yield method over the remaining life of the loans. These amounts do not include the fair value adjustments on the purchased credit impaired loans acquired from mergers.

Purchased Credit Impaired Loans

PCI loans are acquired loans with evidence of deterioration of credit quality since origination and it is probable at the acquisition date, that the Company will not be able to collect all contractually required amounts.

When the timing and/or amounts of expected cash flows on such loans are not reasonably estimable, no interest is accreted and the loan is reported as a non-accrual loan; otherwise, if the timing and amounts of expected cash flows for PCI loans are reasonably estimable, then interest is accreted and the loans are reported as accruing loans.

The non-accretable difference represents the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows, and also reflects the estimated credit losses in the acquired loan portfolio at the acquisition date and can fluctuate due to changes in expected cash flows during the life of the PCI loans.

The following table reflects the outstanding balance and related carrying value of PCI loans as of the dates indicated (dollars in thousands):

	September 30, 2015				December 31, 2014
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial and Industrial	$	710	$	382	$	1,205	$	693
Commercial and Other Real Estate		2,262		1,534		3,018		1,692
Other		—		—		62		—
Total	$	2,972	$	1,916	$	4,285	$	2,385

The following table reflects the activities in the accretable net discount for PCI loans for the periods indicated (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Balance, beginning of period	$	286		$	360		$	324		$	395
Accretion, included in interest income		(20	)		(18	)		(58	)		(53	)
Reclassifications from non-accretable yield		—			—			—			—
Balance, end of period	$	266		$	342		$	266		$	342

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Accretable Net Discount of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Acquired Impaired Loans Change In Accretable Yield [Line Items]
Balance, beginning of period	$ 18,255	$ 6,412	$ 21,402	$ 7,912
Accretion, included in interest income	(1,463)	(813)	(4,140)	(2,264)
Balance, end of period	16,787	5,599	16,787	5,599
PCI loans
Acquired Impaired Loans Change In Accretable Yield [Line Items]
Balance, beginning of period	286	360	324	395
Accretion, included in interest income	(20)	(18)	(58)	(53)
Reclassifications from non-accretable yield	0	0	0	0
Balance, end of period	$ 266	$ 342	$ 266	$ 342

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Computation of Earnings per Common Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Computation of Earnings per Common Share

Note 5 - Computation of Earnings per Common Share

Basic and diluted earnings per common share were determined by dividing the net income by the applicable basic and diluted weighted average common shares outstanding. The following table shows weighted average basic shares outstanding, potential dilutive shares related to stock options, unvested restricted stock and restricted stock units, and weighted average diluted shares for the periods indicated (dollars in thousands, except share and per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net Income	$	6,263	$	2,549	$	15,729	$	7,601
Less: Preferred stock dividends and discount accretion		293		—		877		—
Net Income available to common shareholders	$	5,970	$	2,549	$	14,852	$	7,601
Weighted average basic common shares outstanding		16,541,380		10,986,065		16,477,206		10,937,507
Dilutive effect of potential common share issuances from stock options, restricted stock and restricted stock units		456,684		203,837		446,296		210,154
Weighted average diluted common shares outstanding		16,998,064		11,189,902		16,923,502		11,147,661
Income per common share
Basic	$	0.36	$	0.23	$	0.90	$	0.70
Diluted	$	0.35	$	0.23	$	0.88	$	0.68
Anti-dilutive shares not included in the calculation of diluted earnings per share		—		81,000		43,259		82,625

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Investment Securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 6 - Investment Securities

The investment securities portfolio has been classified into two categories: available-for-sale (“AFS”) and held-to-maturity (“HTM”).

The following tables present the amortized cost, gross unrealized gains and losses, and fair values of investment securities by major category as of the dates indicated (dollars in thousands):

			Gross Unrealized
September 30, 2015	Amortized Cost		Gains		Losses		Fair Value
Available-for-sale:
U.S. Govt Agency and Sponsored Agency - Note Securities	$	1,018	$	4	$	—	$	1,022
U.S. Govt Agency - SBA Securities		76,238		665		371		76,532
U.S. Govt Agency - GNMA Mortgage-Backed Securities		32,607		243		252		32,598
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities		97,568		622		285		97,905
Corporate Securities		4,023		29		—		4,052
Municipal Securities		1,017		3		—		1,020
Asset Backed Securities		8,113		—		254		7,859
U.S. Treasury Notes		35,047		50		—		35,097
Total available-for-sale		255,631		1,616		1,162		256,085
Held-to-maturity:
Municipal Securities		43,269		224		71		43,422
Total held-to-maturity		43,269		224		71		43,422
Total investment securities	$	298,900	$	1,840	$	1,233	$	299,507

			Gross Unrealized
December 31, 2014	Amortized Cost		Gains		Losses		Fair Value
Available-for-sale:
U.S. Govt Agency and Sponsored Agency - Note Securities	$	2,036	$	2	$	—	$	2,038
U.S. Govt Agency - SBA Securities		54,062		770		345		54,487
U.S. Govt Agency - GNMA Mortgage-Backed Securities		29,364		255		277		29,342
U.S. Govt Sponsored Agency - CMO & Mortgage-Backed Securities		107,348		457		577		107,228
Corporate Securities		4,043		77		—		4,120
Municipal Securities		1,039		11		—		1,050
Asset Backed Securities		8,711		1		40		8,672
U.S. Treasury Notes		20,031		—		6		20,025
Total available-for-sale		226,634		1,573		1,245		226,962
Held-to-maturity:
Municipal Securities		47,147		169		157		47,159
Total held-to-maturity		47,147		169		157		47,159
Total investment securities	$	273,781	$	1,742	$	1,402	$	274,121

The Company’s investment securities portfolio at September 30, 2015, consists of U.S. Treasury Notes, U.S. Agency and U.S. Sponsored Agency issued AAA and AA rated investment-grade securities, asset backed securities, investment grade corporate bond securities, and municipal securities. At September 30, 2015 and December 31, 2014, securities with a market value of $203 million and $148.8 million, respectively, were pledged as collateral for securities sold under agreements to repurchase, public deposits, outstanding standby letters of credit, bankruptcy deposits, and other purposes as required by various statutes and agreements. See Note 9 – Borrowings and Subordinated Debentures.

The Company did not have any sales of securities during the three and nine months ended September 30, 2015 and 2014.

The following tables present the gross unrealized losses and fair values of AFS and HTM investment securities that were in unrealized loss positions, summarized and classified according to the duration of the loss period as of the dates indicated (dollars in thousands).

	< 12 Continuous Months				> 12 Continuous Months				Total
September 30, 2015	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Temporarily-impaired available-for-sale investment securities:
U.S. Govt. Agency SBA Securities	$	27,938	$	204	$	11,904	$	167	$	39,842	$	371
U.S. Govt. Agency – GNMA Mortgage-Backed Securities		8,569		69		7,421		183		15,990		252
U.S. Govt. Sponsored Agency – CMO & Mortgage-Backed Securities		38,563		194		4,079		91		42,642		285
Asset Backed Securities		7,859		254		—		—		7,859		254
Total temporarily-impaired available-for-sale investment securities	$	82,929	$	721	$	23,404	$	441	$	106,333	$	1,162
Temporarily-impaired held-to-maturity investment securities:
Municipal Securities	$	10,932	$	71	$	—	$	—	$	10,932	$	71
Total temporarily-impaired held-to-maturity investment securities	$	10,932	$	71	$	—	$	—	$	10,932	$	71
	< 12 Continuous Months				> 12 Continuous Months				Total
December 31, 2014	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Temporarily-impaired available-for-sale investment securities:
U.S. Govt. Agency SBA Securities	$	10,688	$	87	$	10,095	$	258	$	20,783	$	345
U.S. Govt. Agency – GNMA Mortgage-Backed Securities		12,784		65		8,784		212		21,568		277
U.S. Govt. Sponsored Agency – CMO & Mortgage-Backed Securities		64,360		413		6,584		164		70,944		577
Asset Backed Securities		4,849		40		—		—		4,849		40
U.S Treasury Notes		20,025		6		—		—		20,025		6
Total temporarily-impaired available-for-sale investment securities	$	112,706	$	611	$	25,463	$	634	$	138,169	$	1,245
Temporarily-impaired held-to-maturity investment securities:
Municipal Securities	$	23,966	$	157	$	—	$	—	$	23,966	$	157
Total temporarily-impaired held-to-maturity investment securities	$	23,966	$	157	$	—	$	—	$	23,966	$	157

The unrealized losses in each of the above categories are associated with the general fluctuation of market interest rates and are not an indication of any deterioration in the credit quality of the security issuers. Further, the Company does not intend to sell these securities and is not more-likely-than-not to be required to sell the securities before the recovery of its amortized cost basis. Accordingly, the Company had no securities that were classified as other-than-temporarily impaired at September 30, 2015 or December 31, 2014, and did not recognize any impairment charges in the consolidated statements of income.

The amortized cost, fair value and average yield of debt securities at September 30, 2015, are reflected in the table below (dollars in thousands). Maturity categories are determined as follows:

• U.S. Govt. Agency, U.S. Treasury Notes and U.S. Govt. Sponsored Agency bonds and notes – maturity date

• U.S. Govt. Sponsored Agency CMO or Mortgage-Backed Securities, U.S. Govt. Agency GNMA Mortgage-Backed Securities, Asset Backed Securities and U.S. Gov. Agency SBA Securities – estimated cash flow taking into account estimated pre-payment speeds

• Investment grade Corporate Bonds and Municipal Securities – the earlier of the maturity date or the expected call date

Although, U.S. Government Agency and U.S. Government Sponsored Agency Mortgage-Backed and CMO securities have contractual maturities through 2048, the expected maturity will differ from the contractual maturities because borrowers or issuers may have the right to prepay such obligations without penalties.

	September 30, 2015
Maturities Schedule of Securities (Dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield
Available-for-sale:
Due through one year	$	51,864	$	52,087		1.22	%
Due after one year through five years		100,939		101,176		1.50	%
Due after five years through ten years		64,028		63,949		1.85	%
Due after ten years		38,800		38,873		2.45	%
Total available-for-sale		255,631		256,085		1.67	%
Held-to-maturity:
Due through one year		3,743		3,747		2.04	%
Due after one year through five years		31,557		31,646		1.52	%
Due after five years through ten years		7,969		8,029		1.94	%
Total held-to-maturity		43,269		43,422		1.65	%
Total investment securities	$	298,900	$	299,507		1.67	%

The weighted average yields in the above table are based on effective rates of book balances at the end of the period. Yields are derived by dividing interest income, adjusted for amortization of premiums and accretion of discounts, by total amortized cost.

Investment in FHLB Common Stock

The Company’s investment in the common stock of the FHLB of San Francisco is carried at cost and was $8.0 million as of September 30, 2015 and December 31, 2014. The investment in FHLB stock is periodically evaluated for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. Based on the current financial condition of the FHLB and our intent and ability to hold this investment for a period of time sufficient to recover our recorded investment, no impairment losses have been recorded through September 30, 2015. The FHLB also paid a special dividend of $296,000 in the second quarter of 2015.

See Note 9 - Borrowings and Subordinated Debentures for a detailed discussion regarding the Company’s borrowings and the requirements to purchase FHLB common stock. See Note 5 - Investment Securities in the Company’s December 31, 2014 10-K for additional discussion on the Company’s evaluation and accounting for its investment in FHLB common stock.

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Qualified Affordable Housing Project Investments

9 Months Ended

Sep. 30, 2015

Federal Home Loan Banks [Abstract]

Qualified Affordable Housing Project Investments

Note 8 - Qualified Affordable Housing Project Investments

The Company’s investment in Qualified Affordable Housing Projects that generate Low Income Housing Tax Credits (“LIHTC”) was $3.8 million at September 30, 2015 and $4.2 million at December 31, 2014. The funding liability for the LIHTC was $1 million at September 30, 2015 compared to $3 million at December 31, 2014. The amount of tax credits and other tax benefits recognized was $436,000 and $443,000 for the nine months ended September 30, 2015 and September 30, 2014, respectively. Further, the amount of amortization expense included in the provision for income taxes was $343,000 and $348,000 for the nine months ended September 30, 2015 and September 30, 2014, respectively. See Note 11 – Qualified Affordable Housing Project Investments in the Company’s 10-K financial statements at December 31, 2014 for additional detail regarding the Company’s investment in LIHTC.

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Subordinated Debentures Outstanding (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount, gross	$ 12,372
Unamortized fair value adjustment	(2,715)
Net	9,657	$ 9,538
Trust I
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount, gross	$ 6,186
Issuance Date	Dec. 10, 2004
Maturity Date	Mar. 15, 2035
Rate Index	3 month LIBOR + 2.05 %
Current Rate	2.39%
Next Reset Date	Dec. 15, 2015
Trust II
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount, gross	$ 3,093
Issuance Date	Dec. 23, 2005
Maturity Date	Mar. 15, 2036
Rate Index	3 month LIBOR + 1.75 %
Current Rate	2.09%
Next Reset Date	Dec. 15, 2015
Trust III
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount, gross	$ 3,093
Issuance Date	Jun. 30, 2006
Maturity Date	Sep. 18, 2036
Rate Index	3 month LIBOR + 1.85 %
Current Rate	2.19%
Next Reset Date	Dec. 15, 2015

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Balance Sheet Classification of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Asset Derivatives	$ 1,298	$ 719
Liability Derivatives	3,386	3,515
PC Bancorp | Accrued Interest Payable and Other Liabilities
Derivative [Line Items]
Liability Derivatives	2,088	2,796
PC Bancorp | Accrued Interest Payable and Other Liabilities | Interest Rate Contracts
Derivative [Line Items]
Liability Derivatives	26,226	29,289
1st Enterprise Bank | Accrued Interest Receivable and Other Assets | Interest rate swap contracts fair value
Derivative [Line Items]
Asset Derivatives	1,298	719
1st Enterprise Bank | Accrued Interest Payable and Other Liabilities | Interest rate swap contracts fair value
Derivative [Line Items]
Liability Derivatives	1,298	719
Derivatives not Designated as Hedging Instruments | PC Bancorp | Accrued Interest Payable and Other Liabilities | Interest rate swap contracts fair value
Derivative [Line Items]
Liability Derivatives	394	519
Derivatives Designated as Hedging Instruments | PC Bancorp | Accrued Interest Payable and Other Liabilities | Interest rate swap contracts fair value
Derivative [Line Items]
Liability Derivatives	$ 1,694	$ 2,277

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Terms and Maturity of Bank's Securities Sold under Agreements (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount	$ 16,698	$ 9,411
Interest Rate	0.22%	0.20%
December 31, 2014
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount		$ 9,411
Term		2 days
Maturity Date		Jan. 02, 2015
December 31, 2014 | Minimum
Financial Instruments Owned and Pledged as Collateral [Line Items]
Interest Rate		0.13%
December 31, 2014 | Maximum
Financial Instruments Owned and Pledged as Collateral [Line Items]
Interest Rate		0.25%
September 30, 2015
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount	$ 16,698
Term	1 day
Maturity Date	Oct. 01, 2015
September 30, 2015 | Minimum
Financial Instruments Owned and Pledged as Collateral [Line Items]
Interest Rate	0.10%
September 30, 2015 | Maximum
Financial Instruments Owned and Pledged as Collateral [Line Items]
Interest Rate	0.25%

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Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss) by component for the periods indicated (dollars in thousands):

	Before Tax			Tax Effect			Net of Tax
Three Months Ended – September 30, 2015
Net unrealized gains (losses) on investment securities:
Beginning balance	$	(82	)	$	(34	)	$	(48	)
Net unrealized gains arising during the period		536			225			311
Ending balance	$	454		$	191		$	263
	Before Tax			Tax Effect			Net of Tax
Three Months Ended – September 30, 2014
Net unrealized gains (losses) on investment securities:
Beginning balance	$	331		$	136		$	195
Net unrealized gains arising during the period		19			11			8
Ending balance	$	350		$	147		$	203

	Before Tax			Tax Effect			Net of Tax
Nine Months Ended – September 30, 2015
Net unrealized gains (losses) on investment securities:
Beginning balance	$	333		$	143		$	190
Net unrealized gains arising during the period		121			48			73
Ending balance	$	454		$	191		$	263
	Before Tax			Tax Effect			Net of Tax
Nine Months Ended – September 30, 2014
Net unrealized gains (losses) on investment securities:
Beginning balance	$	(348	)	$	(143	)	$	(205	)
Net unrealized gains arising during the period		698			290			408
Ending balance	$	350		$	147		$	203

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Schedule Represents both Allowance for Loan Loss and Associated Loan Balance Classified by Loan Portfolio Segment and by Credit Evaluation Methodology (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 577		$ 222
Collectively evaluated for impairment	14,388		12,388
Total Allowance for Loan Loss	14,965	$ 14,124	12,610	$ 11,348	$ 11,284	$ 10,603
Loans receivable:
Individually evaluated for impairment	3,545		2,651
Collectively evaluated for impairment	1,765,886		1,619,687
Total Loans	1,771,347		1,624,723
Loans Acquired with Deteriorated Credit Quality
Financing Receivable, Allowance for Credit Losses [Line Items]
Purchased credit impaired (loans acquired with deteriorated credit quality)	0		0
Loans receivable:
Purchased credit impaired (loans acquired with deteriorated credit quality)	1,916		2,385
Commercial and Industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	577		222
Collectively evaluated for impairment	6,025		5,642
Total Allowance for Loan Loss	6,602	6,244	5,864	5,754	5,385	5,534
Loans receivable:
Individually evaluated for impairment	3,446		1,914
Collectively evaluated for impairment	552,634		525,910
Total Loans	556,462		528,517
Commercial and Industrial | Loans Acquired with Deteriorated Credit Quality
Financing Receivable, Allowance for Credit Losses [Line Items]
Purchased credit impaired (loans acquired with deteriorated credit quality)	0		0
Loans receivable:
Purchased credit impaired (loans acquired with deteriorated credit quality)	382		693
Construction, Land Development and Other Land
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	1,978		1,684
Total Allowance for Loan Loss	1,978	1,607	1,684	1,217	1,422	1,120
Loans receivable:
Collectively evaluated for impairment	94,353		72,223
Total Loans	94,353		72,223
Construction, Land Development and Other Land | Loans Acquired with Deteriorated Credit Quality
Financing Receivable, Allowance for Credit Losses [Line Items]
Purchased credit impaired (loans acquired with deteriorated credit quality)	0		0
Commercial and Other Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	5,901		4,802
Total Allowance for Loan Loss	5,901	5,799	4,802	3,990	4,426	3,886
Loans receivable:
Individually evaluated for impairment	99		737
Collectively evaluated for impairment	1,081,258		993,195
Total Loans	1,082,891		995,624
Commercial and Other Real Estate | Loans Acquired with Deteriorated Credit Quality
Financing Receivable, Allowance for Credit Losses [Line Items]
Purchased credit impaired (loans acquired with deteriorated credit quality)	0		0
Loans receivable:
Purchased credit impaired (loans acquired with deteriorated credit quality)	1,534		1,692
Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	484		260
Total Allowance for Loan Loss	484	$ 474	260	$ 387	$ 51	$ 63
Loans receivable:
Collectively evaluated for impairment	37,641		28,359
Total Loans	37,641		28,359
Other | Loans Acquired with Deteriorated Credit Quality
Financing Receivable, Allowance for Credit Losses [Line Items]
Purchased credit impaired (loans acquired with deteriorated credit quality)	$ 0		$ 0

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Shareholders' Equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Shareholders' Equity

Note 13 – Shareholders’ Equity

Common Stock

During the first three quarters of 2015, the Company’s issued common stock increased by 187,080 shares, from 16,683,856 shares at December 31, 2014, to 16,870,936 shares at September 30, 2015. During the nine months ended September 30, 2015, the Company issued 158,315 shares of stock from the exercise of employee stock options for a total value of $1,434,000. The Company also granted 77,800 shares of restricted stock awards to the Company’s directors and employees and cancelled 9,175 shares of unvested restricted stock related to employee turnover, resulting in a net issuance of restricted stock of 68,625 shares. Further, the Company cancelled 39,860 shares of restricted stock that had a value of $856,000 when employees elected to pay their tax obligation via the repurchase of the stock by the Company.

The Equity Plan, as amended, allows employees to make an election to have a portion of their restricted stock that became vested during the year repurchased by the Company to provide funds to pay the employee’s tax obligation related to the vesting of the stock.

Preferred Stock

As discussed in Note 3 - Business Combinations, the Company completed the merger with 1^st Enterprise on November 30, 2014. As part of the Merger Agreement, 16,400 shares of preferred stock issued by 1^st Enterprise as part of the Small Business Lending Fund (SBLF) program of the United States Department of the Treasury was converted into substantially 16,400 identical CU Bancorp shares with identical terms. CU Bancorp Preferred Stock has a liquidation preference amount of $1,000 per share, designated as the Company’s Non-Cumulative Perpetual Preferred Stock, Series A. The U.S. Department of the Treasury is the sole holder of all outstanding shares of CU Bancorp Preferred Stock. The CU Bancorp Preferred Stock had an estimated life of four years and the fair value was $15.9 million at the merger date, resulting in a net discount of $479,000. The life-to-date and the year-to-date accretion on the net discount as of September 30, 2015 is $818,000 and $735,000, respectively. The net carrying value of the CU Bancorp Preferred Stock is $16.7 million ($16.4 million plus of $0.3 million net premium) as of September 30, 2015. Dividends on the CU Bancorp Preferred Stock are paid to the U.S. Department of the Treasury on a quarterly basis. See Note 22 - Regulatory Matters, in the Company’s 2014 Form 10-K, for restrictions on dividends.

The Company currently includes the Non-Cumulative Perpetual Preferred Stock, Series A, in its Tier 1 capital. Under Basel III, the CU Bancorp Preferred Stock continues to be included in Tier 1 capital because non-cumulative perpetual preferred stock remained classified as Tier 1 capital following the enactment of Dodd Frank.

Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss) by component for the periods indicated (dollars in thousands):

	Before Tax			Tax Effect			Net of Tax
Three Months Ended – September 30, 2015
Net unrealized gains (losses) on investment securities:
Beginning balance	$	(82	)	$	(34	)	$	(48	)
Net unrealized gains arising during the period		536			225			311
Ending balance	$	454		$	191		$	263
	Before Tax			Tax Effect			Net of Tax
Three Months Ended – September 30, 2014
Net unrealized gains (losses) on investment securities:
Beginning balance	$	331		$	136		$	195
Net unrealized gains arising during the period		19			11			8
Ending balance	$	350		$	147		$	203

	Before Tax			Tax Effect			Net of Tax
Nine Months Ended – September 30, 2015
Net unrealized gains (losses) on investment securities:
Beginning balance	$	333		$	143		$	190
Net unrealized gains arising during the period		121			48			73
Ending balance	$	454		$	191		$	263
	Before Tax			Tax Effect			Net of Tax
Nine Months Ended – September 30, 2014
Net unrealized gains (losses) on investment securities:
Beginning balance	$	(348	)	$	(143	)	$	(205	)
Net unrealized gains arising during the period		698			290			408
Ending balance	$	350		$	147		$	203

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Computation of Book Value and Tangible Book Value per Common Share (Tables)

9 Months Ended

Sep. 30, 2015

Text Block [Abstract]

Computation of Book Value and Tangible Book Value per Common Share

The tables below present the computation of book value and tangible book value per common share as of the dates indicated (dollars in thousands, except share and per share data):

	September 30, 2015		December 31, 2014
Total Shareholders’ Equity	$	298,348	$	279,192
Less: Preferred stock		16,739		16,004
Less: Goodwill		63,950		63,950
Less: Core deposit and leasehold right intangibles		8,138		9,547
Tangible common equity	$	209,521	$	189,691
Common shares issued		16,870,936		16,683,856
Book value per common share	$	16.69	$	15.78
Tangible book value per common share	$	12.42	$	11.37

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Summary of Activity for Allowance for Loan Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Receivables [Abstract]
Allowance for loan loss at beginning of period	$ 14,124	$ 11,284	$ 12,610	$ 10,603	$ 10,603
Provision for loan losses	705	35	2,831	518
Net (charge-offs) recoveries:
Charge-offs	(42)	(8)	(933)	(165)
Recoveries	178	37	457	392
Net (charge-offs) recoveries	136	29	(476)	227
Allowance for loan loss at end of period	$ 14,965	$ 11,348	$ 14,965	$ 11,348	$ 12,610
Net (charge-offs) recoveries to average loans	0.01%	0.00%	(0.03%)	(0.02%)
Allowance for loan loss to total loans	0.84%		0.84%		0.78%
Allowance for loan loss to total loans accounted for at historical cost, which excludes loans and the related allowance for loans acquired through acquisition			1.30%		1.39%

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Basic and Diluted Earnings Per Common Share Computations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net Income	$ 6,263	$ 2,549	$ 15,729	$ 7,601
Less: Preferred stock dividends and discount accretion	293		877
Net Income available to common shareholders	$ 5,970	$ 2,549	$ 14,852	$ 7,601
Weighted average basic common shares outstanding	16,541,380	10,986,065	16,477,206	10,937,507
Dilutive effect of potential common share issuances from stock options, restricted stock and restricted stock units	456,684	203,837	446,296	210,154
Weighted average diluted common shares outstanding	16,998,064	11,189,902	16,923,502	11,147,661
Basic income (loss) per share	$ 0.36	$ 0.23	$ 0.90	$ 0.70
Diluted income (loss) per share	$ 0.35	$ 0.23	$ 0.88	$ 0.68
Anti-dilutive shares not included in the calculation of diluted earnings per share		81,000	43,259	82,625

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Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Stock based compensation expense	$ 810	$ 445	$ 2,130	$ 1,332

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 2 - Recent Accounting Pronouncements

In November 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. This ASU will require an entity to determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument issued in the form of a share, including the embedded derivative feature that is being evaluated for separate accounting from the host contract when evaluating whether the host contract is more akin to debt or equity. In evaluating the stated and implied substantive terms and features, the existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. Although an individual term or feature may weigh more heavily in the evaluation on the basis of facts and circumstances, an entity should use judgment based on an evaluation of all the relevant terms and features. ASU 2014-16 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the ASU is effective for fiscal years ending after December 15, 2015, and interim periods within fiscal years thereafter. The effects of initially adopting the amendments should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendment is effective. Retrospective application is permitted to all relevant prior periods. Early adoption, including adoption in an interim period, is permitted. If an entity early adopts the amendments in an interim period, any adjustments shall be reflected as of the beginning of the fiscal year that includes that interim period. The Company does not expect the adoption of this ASU to have an impact on the Company’s financial position or results of operations.

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis to improve targeted areas of the consolidation guidance and reduce the number of consolidation models. The Company may either apply the amendments retrospectively or use a modified retrospective approach. ASU 2015-02 is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 simplifies the presentation of debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts. ASU 2015-03 is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted if the guidance is applied as of the beginning of the annual period of adoption. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which replaced existing revenue recognition guidance for contracts to provide goods or services to customers and amended existing guidance related to recognition of gains and losses on the sale of certain nonfinancial assets such as real estate. ASU 2014-09 established a principles-based approach to recognizing revenue that applies to all contracts other than those covered by other authoritative GAAP guidance. Quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows were also required. ASU 2014-09 was to be effective for interim and annual periods beginning after December 15, 2016 was to be applied on either a modified retrospective or full retrospective basis. In response to stakeholders’ requests to defer the effective date required by ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), in August 2015, the FASB issued ASU 2015-14 which defers the original effective date for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2015-14 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement Period Adjustments. GAAP requires that during the measurement period, the acquirer retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. Those adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The acquirer also must revise comparative information for prior periods presented in the financial statements as needed, including revising depreciation, amortization, or other income effects as a result of changes made to provisional amounts. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in ASU 2015-16 eliminate the requirement to retrospectively account for those adjustments. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not been issued. For all other entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this ASU should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not yet been made available for issuance. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

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Accretable Yield for Loans Acquired (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Receivables [Abstract]
Balance, beginning of period	$ 18,255	$ 6,412	$ 21,402	$ 7,912
Accretion, included in interest income	(1,463)	(813)	(4,140)	(2,264)
Reclassifications (to) from non-accretable yield	(5)		(475)	(49)
Balance, end of period	$ 16,787	$ 5,599	$ 16,787	$ 5,599

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Future Compensation Expense Related to Unvested Restricted Stock Grants (Detail) - Equity Plan - Restricted Stock $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remainder of 2015	$ 676
2016	1,879
2017	760
2018	273
2019	31
Thereafter	0
Total	$ 3,619

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Computation of Earnings per Common Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Common Share Computations

The following table shows weighted average basic shares outstanding, potential dilutive shares related to stock options, unvested restricted stock and restricted stock units, and weighted average diluted shares for the periods indicated (dollars in thousands, except share and per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net Income	$	6,263	$	2,549	$	15,729	$	7,601
Less: Preferred stock dividends and discount accretion		293		—		877		—
Net Income available to common shareholders	$	5,970	$	2,549	$	14,852	$	7,601
Weighted average basic common shares outstanding		16,541,380		10,986,065		16,477,206		10,937,507
Dilutive effect of potential common share issuances from stock options, restricted stock and restricted stock units		456,684		203,837		446,296		210,154
Weighted average diluted common shares outstanding		16,998,064		11,189,902		16,923,502		11,147,661
Income per common share
Basic	$	0.36	$	0.23	$	0.90	$	0.70
Diluted	$	0.35	$	0.23	$	0.88	$	0.68
Anti-dilutive shares not included in the calculation of diluted earnings per share		—		81,000		43,259		82,625

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Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net unrealized gains (losses) on investment securities: Before Tax
Beginning balance	$ (82)	$ 331	$ 333	$ (348)
Net unrealized gains arising during the period	536	19	121	698
Ending balance	454	350	454	350
Net unrealized gains (losses) on investment securities: Tax Effect
Beginning balance	(34)	136	143	(143)
Net unrealized gains arising during the period	225	11	48	290
Ending balance	191	147	191	147
Net unrealized gains (losses) on investment securities: Net of Tax
Beginning balance	(48)	195	190	(205)
Net unrealized gains arising during the period	311	8	73	408
Ending balance	$ 263	$ 203	$ 263	$ 203

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Business Combinations - Fair Values of Consideration Paid, Assets Acquired and Liabilities Assumed as of Date of Acquisition (Detail) - USD ($) $ in Thousands	Nov. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Assets acquired:
Goodwill		$ 63,950	$ 63,950
1st Enterprise Bank
Assets acquired:
Cash and due from banks	$ 8,739
Interest earning deposits in other financial institutions	11,554
Investment securities available-for-sale	117,407
Investment securities held-to-maturity	47,457
Loans	553,183
Premises and equipment, net	1,830
Deferred tax asset	5,682
Goodwill	51,658
Core deposit and leasehold right intangibles	7,533
Bank owned life insurance	16,871
Accrued interest receivable and other assets	11,583
Total assets acquired	833,497
Liabilities assumed:
Deposits	703,358
Accrued interest payable and other liabilities	1,856
Total liabilities assumed	705,214
Total consideration paid:
CU Bancorp issued	103,000
Fair value of 1st Enterprise stock options	9,561
Cash paid to a dissenter shareholder	87
Cash in lieu of fractional shares paid to 1st Enterprise shareholders	2
Total Consideration	128,283
1st Enterprise Bank | Common Stock
Total consideration paid:
CU Bancorp issued	102,712
1st Enterprise Bank | Preferred Stock
Total consideration paid:
CU Bancorp issued	$ 15,921

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Stock Options and Restricted Stock

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options and Restricted Stock

Note 12 - Stock Options and Restricted Stock

Equity Compensation Plans

The Company’s 2007 Equity and Incentive Plan, “Equity Plan,” was adopted by the Company in 2007 and replaced two prior equity compensation plans. The Equity Plan provides for significant flexibility in determining the types and terms of awards that may be made to participants. The Equity Plan was revised and approved by the Company’s shareholders in 2011 and adopted by the Company as part of the Bank holding company reorganization. This plan is designed to promote the interest of the Company in aiding the Company to attract and retain employees, officers and non-employee directors who are expected to contribute to the future success of the organization. The Equity Plan is intended to provide participants with incentives to maximize their efforts on behalf of the Company through stock-based awards that provide an opportunity for stock ownership. This plan provides the Company with a flexible equity incentive compensation program, which allows the Company to grant stock options, restricted stock, restricted stock award units and performance units. Certain options and share awards provide for accelerated vesting, if there is a change in control, as defined in the Equity Plan. These plans are described more fully in Note 16 - Stock Options and Restricted Stock in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

At September 30, 2015, future compensation expense related to unvested restricted stock grants are reflected in the table below (dollars in thousands):

Restricted Stock Expense
Remainder of 2015	$	676
2016		1,879
2017		760
2018		273
2019		31
Thereafter		—
Total	$	3,619

There was no future compensation expense related to stock options as of September 30, 2015. All stock options outstanding at September 30, 2015 are vested.

Stock Options

There were no stock options granted by the Company in 2012, 2013, 2014, or during the nine months ended September 30, 2015.

The following table summarizes the share option activity under the plans as of the date and for the period indicated:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding stock options at December 31, 2014		1,016,490		$	10.13		1.6	$	11,770
Granted		—
Exercised		(158,315	)
Forfeited		(5,000	)
Expired		—
Outstanding stock options at September 30, 2015		853,175		$	10.26		0.9	$	10,467
Exercisable options at September 30, 2015		853,175		$	10.26		0.9	$	10,467
Unvested options at September 30, 2015		—

The Company recorded stock option compensation expense of $0 and $2,000 for the three months ended September 30, 2015 and 2014, and $1,700 and $8,000 for the nine months period September 30, 2015 and 2014, respectively.

The total intrinsic value of options exercised during the three months ended September 30, 2015 and 2014 was $2 million and $1 million, respectively.

Restricted Stock

The weighted-average grant-date fair value per share in the table below is calculated by taking the total aggregate cost of the restricted shares issued divided by the number of shares of restricted stock issued. The aggregate cost of the restricted stock was calculated by multiplying the number of shares granted at each of the grant dates by the closing stock price of the Company’s common stock on the date of the grant. The following table summarizes the restricted stock activity under the Equity Plan for the period indicated:

	Number of Shares			Weighted-Average Grant-Date Fair Value per Share
Restricted Stock:
Unvested at December 31, 2014		309,506		$	16.41
Granted		77,800			20.95
Vested		(99,750	)		13.42
Cancelled and forfeited		(9,175	)		16.50
Unvested at September 30, 2015		278,381		$	18.74

Restricted stock compensation expense related to the restricted stock grants reflected in the table above was $745,000 and $443,000 for the three month period ended September 30, 2015 and 2014 and $2 million and $1 million for the nine month period ended September 30, 2015 and 2014, respectively. Restricted stock awards reflected in the table above are valued at the closing stock price on the date of grant and are expensed to stock based compensation expense over the period for which the related service is performed. During the three months and nine months ended September 30, 2015, the Company granted 40,000 shares of Restricted Stock Unit (“RSU”), respectively, under the Equity Plan to one of its executive officers. Such grant is not reflected in the table above. The shares of common stock underlying the 40,000 shares of RSU will not be issued until the RSUs vest but are outstanding as of September 30, 2015. The RSUs are valued at the closing stock price on the date of grant and are expensed to stock based compensation expense over the period for which the related service is performed.