x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 95-4788120 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
3660 Wilshire Boulevard, Penthouse Suite A Los Angeles, California | 90010 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large Accelerated Filer | x | Accelerated Filer | ¨ | |
Non-Accelerated Filer | ¨ (Do Not Check if a Smaller Reporting Company) | Smaller Reporting Company | ¨ |
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Item 6. | ||
(Unaudited) September 30, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Cash and due from banks | $ | 130,197 | $ | 164,364 | |||
Securities available for sale, at fair value (amortized cost of $537,820 as of September 30, 2016 and $700,627 as of December 31, 2015) | 548,961 | 698,296 | |||||
Loans held for sale, at the lower of cost or fair value | 6,425 | 2,874 | |||||
Loans receivable, net of allowance for loan losses of $38,972 as of September 30, 2016 and $42,935 as of December 31, 2015 | 3,513,687 | 3,140,381 | |||||
Accrued interest receivable | 10,160 | 9,501 | |||||
Premises and equipment, net | 27,682 | 29,834 | |||||
Other real estate owned ("OREO"), net | 10,971 | 8,511 | |||||
Customers’ liability on acceptances | 1,041 | 3,586 | |||||
Servicing assets | 10,833 | 11,744 | |||||
Core deposit intangible, net | 1,456 | 1,701 | |||||
Federal Home Loan Bank ("FHLB") stock, at cost | 16,385 | 16,385 | |||||
Federal Reserve Bank ("FRB") stock, at cost | — | 14,098 | |||||
Income tax asset | 50,145 | 57,174 | |||||
Bank-owned life insurance | 49,149 | 48,340 | |||||
Prepaid expenses and other assets | 25,088 | 27,732 | |||||
Total assets | $ | 4,402,180 | $ | 4,234,521 | |||
Liabilities and stockholders’ equity | |||||||
Liabilities: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 1,231,967 | $ | 1,155,518 | |||
Interest-bearing | 2,539,240 | 2,354,458 | |||||
Total deposits | 3,771,207 | 3,509,976 | |||||
Accrued interest payable | 2,444 | 3,177 | |||||
Bank’s liability on acceptances | 1,041 | 3,586 | |||||
FHLB advances | 55,000 | 170,000 | |||||
Servicing liabilities | 3,426 | 4,784 | |||||
Federal Deposit Insurance Corporation ("FDIC") loss sharing liability | 1,701 | 1,289 | |||||
Subordinated debentures | 18,888 | 18,703 | |||||
Accrued expenses and other liabilities | 17,275 | 29,088 | |||||
Total liabilities | 3,870,982 | 3,740,603 | |||||
Stockholders’ equity: | |||||||
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 32,865,393 shares (32,252,774 shares outstanding) as of September 30, 2016 and issued 32,566,522 shares (31,974,359 shares outstanding) as of December 31, 2015 | 33 | 257 | |||||
Additional paid-in capital | 560,906 | 557,761 | |||||
Accumulated other comprehensive income (loss), net of tax expense of $3,586 as of September 30, 2016 and tax benefit of $2,007 as of December 31, 2015 | 7,555 | (315 | ) | ||||
Retained earnings | 33,413 | 6,422 | |||||
Less: treasury stock, at cost; 612,619 shares as of September 30, 2016 and 592,163 shares as of December 31, 2015 | (70,709 | ) | (70,207 | ) | |||
Total stockholders’ equity | 531,198 | 493,918 | |||||
Total liabilities and stockholders’ equity | $ | 4,402,180 | $ | 4,234,521 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest and dividend income: | |||||||||||||||
Interest and fees on loans | $ | 41,150 | $ | 36,466 | $ | 120,862 | $ | 110,415 | |||||||
Interest on securities | 2,701 | 2,884 | 8,604 | 9,737 | |||||||||||
Dividends on FRB and FHLB stock | 419 | 607 | 1,540 | 2,205 | |||||||||||
Interest on deposits in other banks | 55 | 68 | 152 | 156 | |||||||||||
Total interest and dividend income | 44,325 | 40,025 | 131,158 | 122,513 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 4,358 | 3,881 | 11,769 | 11,463 | |||||||||||
Interest on subordinated debentures | 206 | 158 | 584 | 454 | |||||||||||
Interest on FHLB advances | 179 | 1 | 673 | 61 | |||||||||||
Total interest expense | 4,743 | 4,040 | 13,026 | 11,978 | |||||||||||
Net interest income before provision for loan losses | 39,582 | 35,985 | 118,132 | 110,535 | |||||||||||
Negative provision for loan losses | (1,450 | ) | (3,704 | ) | (4,490 | ) | (7,779 | ) | |||||||
Net interest income after provision for loan losses | 41,032 | 39,689 | 122,622 | 118,314 | |||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 2,883 | 3,378 | 8,782 | 9,758 | |||||||||||
Trade finance and other service charges and fees | 992 | 1,115 | 3,099 | 3,491 | |||||||||||
Gain on sales of Small Business Administration ("SBA") loans | 1,616 | 1,621 | 4,247 | 4,878 | |||||||||||
Net gain on sales of securities | 46 | 2,048 | 46 | 6,144 | |||||||||||
Disposition gains on Purchased Credit Impaired ("PCI") loans | 789 | 4,334 | 3,411 | 8,027 | |||||||||||
Other operating income | 2,348 | 1,065 | 5,423 | 3,246 | |||||||||||
Total noninterest income | 8,674 | 13,561 | 25,008 | 35,544 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 15,950 | 16,097 | 47,710 | 48,023 | |||||||||||
Occupancy and equipment | 3,917 | 4,896 | 11,351 | 13,423 | |||||||||||
Data processing | 1,330 | 1,418 | 4,219 | 4,885 | |||||||||||
Professional fees | 1,090 | 1,940 | 4,063 | 5,982 | |||||||||||
Supplies and communications | 821 | 880 | 2,266 | 2,638 | |||||||||||
Advertising and promotion | 1,153 | 1,290 | 2,769 | 2,859 | |||||||||||
OREO expense | 73 | 225 | 721 | 629 | |||||||||||
Merger and integration costs | — | — | — | 1,747 | |||||||||||
Other operating expenses | 4,003 | 1,976 | 9,170 | 6,953 | |||||||||||
Total noninterest expense | 28,337 | 28,722 | 82,269 | 87,139 | |||||||||||
Income before income tax expense | 21,369 | 24,528 | 65,361 | 66,719 | |||||||||||
Income tax expense | 8,248 | 10,569 | 23,288 | 27,722 | |||||||||||
Net income | $ | 13,121 | $ | 13,959 | $ | 42,073 | $ | 38,997 | |||||||
Basic earnings per share | $ | 0.41 | $ | 0.44 | $ | 1.31 | $ | 1.22 | |||||||
Diluted earnings per share | $ | 0.41 | $ | 0.44 | $ | 1.31 | $ | 1.22 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 31,912,470 | 31,799,573 | 31,880,466 | 31,774,047 | |||||||||||
Diluted | 32,088,233 | 31,909,808 | 32,031,295 | 31,855,024 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 13,121 | $ | 13,959 | $ | 42,073 | $ | 38,997 | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Unrealized (loss) gain on securities: | |||||||||||||||
Unrealized holding (loss) gain arising during period | (2,629 | ) | 5,064 | 13,518 | 9,066 | ||||||||||
Less: reclassification adjustment for net gain included in net income | (46 | ) | (2,048 | ) | (46 | ) | (6,144 | ) | |||||||
Unrealized loss on interest-only strip of servicing assets | — | (7 | ) | (9 | ) | (7 | ) | ||||||||
Income tax benefit (expense) related to items of other comprehensive income | 1,109 | (1,274 | ) | (5,593 | ) | (1,220 | ) | ||||||||
Other comprehensive (loss) income, net of tax | (1,566 | ) | 1,735 | 7,870 | 1,695 | ||||||||||
Comprehensive income | $ | 11,555 | $ | 15,694 | $ | 49,943 | $ | 40,692 |
Common Stock - Number of Shares | Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares Issued | Treasury Shares | Shares Outstanding | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated (Deficit) Retained Earnings | Treasury Stock, at Cost | Total Stockholders’ Equity | ||||||||||||||||||||||||
Balance at January 1, 2015 | 32,488,097 | (577,894 | ) | 31,910,203 | $ | 257 | $ | 554,904 | $ | 463 | $ | (32,379 | ) | $ | (69,858 | ) | $ | 453,387 | ||||||||||||||
Stock options exercised | 39,766 | — | 39,766 | — | 531 | — | — | — | 531 | |||||||||||||||||||||||
Restricted stock awards, net of forfeitures | 39,423 | — | 39,423 | — | — | — | — | — | — | |||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 1,681 | — | — | — | 1,681 | |||||||||||||||||||||||
Restricted stock surrendered due to employee tax liability | — | (12,185 | ) | (12,185 | ) | — | — | — | — | (293 | ) | (293 | ) | |||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (10,549 | ) | — | (10,549 | ) | |||||||||||||||||||||
Net income | — | — | — | — | — | — | 38,997 | — | 38,997 | |||||||||||||||||||||||
Change in unrealized gain on securities available for sale, net of income taxes | — | — | — | — | — | 1,695 | — | — | 1,695 | |||||||||||||||||||||||
Balance at September 30, 2015 | 32,567,286 | (590,079 | ) | 31,977,207 | $ | 257 | $ | 557,116 | $ | 2,158 | $ | (3,931 | ) | $ | (70,151 | ) | $ | 485,449 | ||||||||||||||
Balance at January 1, 2016 | 32,566,522 | (592,163 | ) | 31,974,359 | $ | 257 | $ | 557,761 | $ | (315 | ) | $ | 6,422 | $ | (70,207 | ) | $ | 493,918 | ||||||||||||||
Correction of accounting for the 2011 1-for-8 stock split | — | — | — | (224 | ) | 224 | — | — | — | — | ||||||||||||||||||||||
Stock options exercised | 42,584 | — | 42,584 | — | 592 | — | — | — | 592 | |||||||||||||||||||||||
Restricted stock awards, net of forfeitures | 256,287 | — | 256,287 | — | — | — | — | — | — | |||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 2,329 | — | — | — | 2,329 | |||||||||||||||||||||||
Restricted stock surrendered due to employee tax liability | — | (20,456 | ) | (20,456 | ) | — | — | — | — | (502 | ) | (502 | ) | |||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (15,082 | ) | — | (15,082 | ) | |||||||||||||||||||||
Net income | — | — | — | — | — | — | 42,073 | — | 42,073 | |||||||||||||||||||||||
Change in unrealized gain on securities available for sale and unrealized loss on interest-only strip of servicing assets, net of income taxes | — | — | — | — | — | 7,870 | — | — | 7,870 | |||||||||||||||||||||||
Balance at September 30, 2016 | 32,865,393 | (612,619 | ) | 32,252,774 | $ | 33 | $ | 560,906 | $ | 7,555 | $ | 33,413 | $ | (70,709 | ) | $ | 531,198 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 42,073 | $ | 38,997 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 10,848 | 15,187 | |||||
Share-based compensation expense | 2,329 | 1,681 | |||||
Negative provision for loan losses | (4,490 | ) | (7,779 | ) | |||
Gain on sales of securities | (46 | ) | (6,144 | ) | |||
Gain on sales of SBA loans | (4,247 | ) | (4,878 | ) | |||
Gain on sale of premises and equipment | (1,053 | ) | (137 | ) | |||
Disposition gains on PCI loans | (3,411 | ) | (8,027 | ) | |||
Valuation adjustment on OREO | 721 | (27 | ) | ||||
Origination of SBA loans held for sale | (60,248 | ) | (59,273 | ) | |||
Proceeds from sales of SBA loans | 61,494 | 66,157 | |||||
Change in accrued interest receivable | (659 | ) | 1,027 | ||||
Change in bank-owned life insurance | (809 | ) | (524 | ) | |||
Change in prepaid expenses and other assets | 3,791 | 2,042 | |||||
Change in income tax asset | 1,436 | 12,304 | |||||
Change in accrued interest payable | (733 | ) | (465 | ) | |||
Change in FDIC loss sharing liability | 412 | (901 | ) | ||||
Change in accrued expenses and other liabilities | (10,533 | ) | (12,669 | ) | |||
Net cash provided by operating activities | 36,875 | 36,571 | |||||
Cash flows from investing activities: | |||||||
Proceeds from redemption of FHLB stock | — | 1,195 | |||||
Proceeds from redemption of FRB stock | 14,423 | — | |||||
Proceeds from matured, called and repayment of securities | 98,771 | 94,108 | |||||
Proceeds from sales of securities available for sale | 78,282 | 352,224 | |||||
Proceeds from sales of OREO | 2,306 | 7,532 | |||||
Proceeds from sales of loans | — | 360 | |||||
Proceeds from bank-owned life insurance | — | 1,323 | |||||
Change in loans receivable, excluding purchases | (229,063 | ) | (154,892 | ) | |||
Purchases of securities | (19,992 | ) | (111,864 | ) | |||
Purchases of premises and equipment | 982 | (1,169 | ) | ||||
Purchases of loans receivable | (143,189 | ) | (100,763 | ) | |||
Purchases of FRB stock | (325 | ) | (1,825 | ) | |||
Net cash (used in) provided by investing activities | (197,805 | ) | 86,229 | ||||
Cash flows from financing activities: | |||||||
Change in deposits | 261,231 | (38,052 | ) | ||||
Change in overnight FHLB borrowings | (115,000 | ) | — | ||||
Redemption of rescinded stock obligation | — | (933 | ) | ||||
Proceeds from exercise of stock options | 592 | 531 | |||||
Cash paid for treasury shares acquired in respect of share-based compensation | (502 | ) | (293 | ) | |||
Cash dividends paid | (19,558 | ) | (7,031 | ) | |||
Net cash provided by (used in) financing activities | 126,763 | (45,778 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (34,167 | ) | 77,022 | ||||
Cash and cash equivalents at beginning of year | 164,364 | 158,320 | |||||
Cash and cash equivalents at end of period | $ | 130,197 | $ | 235,342 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 13,759 | $ | 12,443 | |||
Income taxes | $ | 21,654 | $ | 13,528 | |||
Non-cash activities: | |||||||
Transfer of loans receivable to OREO | $ | 4,318 | $ | 5,056 | |||
Transfer of loans receivable to loans held for sale | $ | — | $ | 360 | |||
Due from broker on sale of securities | $ | — | $ | 57,800 | |||
Income tax (expense) benefit related to items in other comprehensive income | $ | (5,593 | ) | $ | (1,220 | ) | |
Change in unrealized gain in accumulated other comprehensive income | $ | (13,518 | ) | $ | (9,059 | ) | |
Cash dividends declared | $ | (15,082 | ) | $ | (10,549 | ) |
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
September 30, 2016 | |||||||||||||||
Mortgage-backed securities (1) (2) | $ | 239,569 | $ | 3,778 | $ | 102 | $ | 243,245 | |||||||
Collateralized mortgage obligations (1) | 84,277 | 174 | 238 | 84,213 | |||||||||||
U.S. government agency securities | 7,499 | 20 | — | 7,519 | |||||||||||
SBA loan pool securities | 4,585 | — | 40 | 4,545 | |||||||||||
Municipal bonds-tax exempt | 160,371 | 6,865 | — | 167,236 | |||||||||||
Municipal bonds-taxable | 13,434 | 491 | — | 13,925 | |||||||||||
Corporate bonds | 5,012 | — | 1 | 5,011 | |||||||||||
U.S. treasury securities | 157 | 1 | — | 158 | |||||||||||
Mutual funds | 22,916 | 280 | 87 | 23,109 | |||||||||||
Total securities available for sale | $ | 537,820 | $ | 11,609 | $ | 468 | $ | 548,961 | |||||||
December 31, 2015 | |||||||||||||||
Mortgage-backed securities (1) (2) | $ | 286,450 | $ | 392 | $ | 2,461 | $ | 284,381 | |||||||
Collateralized mortgage obligations (1) | 97,904 | 79 | 997 | 96,986 | |||||||||||
U.S. government agency securities | 48,478 | — | 656 | 47,822 | |||||||||||
SBA loan pool securities | 63,670 | 7 | 411 | 63,266 | |||||||||||
Municipal bonds-tax exempt | 162,101 | 1,820 | 19 | 163,902 | |||||||||||
Municipal bonds-taxable | 13,932 | 189 | 88 | 14,033 | |||||||||||
Corporate bonds | 5,017 | — | 24 | 4,993 | |||||||||||
U.S. treasury securities | 159 | 1 | — | 160 | |||||||||||
Mutual funds | 22,916 | — | 163 | 22,753 | |||||||||||
Total securities available for sale | $ | 700,627 | $ | 2,488 | $ | 4,819 | $ | 698,296 |
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities. |
(2) | Include securities collateralized by home equity conversion mortgages with total estimated fair value of $54.5 million and $58.6 million as of September 30, 2016 and December 31, 2015, respectively. |
Available for Sale | |||||||
Amortized Cost | Estimated Fair Value | ||||||
(in thousands) | |||||||
Within one year | $ | 1 | $ | 1 | |||
Over one year through five years | 80,351 | 80,744 | |||||
Over five years through ten years | 215,587 | 221,175 | |||||
Over ten years | 241,881 | 247,041 | |||||
Total | $ | 537,820 | $ | 548,961 |
Holding Period | ||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
Gross Unrealized Loss | Estimated Fair Value | Number of Securities | Gross Unrealized Loss | Estimated Fair Value | Number of Securities | Gross Unrealized Loss | Estimated Fair Value | Number of Securities | ||||||||||||||||||||||||
(in thousands, except number of securities) | ||||||||||||||||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 17 | $ | 9,799 | 5 | $ | 85 | $ | 11,639 | 3 | $ | 102 | $ | 21,438 | 8 | |||||||||||||||||
Collateralized mortgage obligations | 110 | 34,898 | 13 | 127 | 12,721 | 7 | 237 | 47,619 | 20 | |||||||||||||||||||||||
U.S. government agency securities | 1 | 3,000 | 1 | — | — | — | 1 | 3,000 | 1 | |||||||||||||||||||||||
SBA loan pool securities | — | — | — | 40 | 4,545 | 2 | 40 | 4,545 | 2 | |||||||||||||||||||||||
Corporate bonds | 1 | 5,010 | 1 | — | — | — | 1 | 5,010 | 1 | |||||||||||||||||||||||
Mutual funds | — | — | — | 87 | 938 | 3 | 87 | 938 | 3 | |||||||||||||||||||||||
Total | $ | 129 | $ | 52,707 | 20 | $ | 339 | $ | 29,843 | 15 | $ | 468 | $ | 82,550 | 35 | |||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 1,734 | $ | 193,931 | 52 | $ | 727 | $ | 21,659 | 9 | $ | 2,461 | $ | 215,590 | 61 | |||||||||||||||||
Collateralized mortgage obligations | 335 | 48,970 | 18 | 662 | 32,964 | 13 | 997 | 81,934 | 31 | |||||||||||||||||||||||
U.S. government agency securities | 201 | 23,289 | 8 | 455 | 24,533 | 8 | 656 | 47,822 | 16 | |||||||||||||||||||||||
SBA loan pool securities | 161 | 50,499 | 12 | 250 | 7,036 | 3 | 411 | 57,535 | 15 | |||||||||||||||||||||||
Municipal bonds-tax exempt | 19 | 8,922 | 6 | — | — | — | 19 | 8,922 | 6 | |||||||||||||||||||||||
Municipal bonds-taxable | 88 | 7,106 | 4 | — | — | — | 88 | 7,106 | 4 | |||||||||||||||||||||||
Corporate bonds | 24 | 4,994 | 1 | — | — | — | 24 | 4,994 | 1 | |||||||||||||||||||||||
Mutual funds | 66 | 21,820 | 3 | 97 | 928 | 3 | 163 | 22,748 | 6 | |||||||||||||||||||||||
Total | $ | 2,628 | $ | 359,531 | 104 | $ | 2,191 | $ | 87,120 | 36 | $ | 4,819 | $ | 446,651 | 140 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Gross realized gains on sales of securities | $ | 396 | $ | 2,048 | $ | 396 | $ | 6,310 | |||||||
Gross realized losses on sales of securities | (350 | ) | — | (350 | ) | (166 | ) | ||||||||
Net realized gains on sales of securities | $ | 46 | $ | 2,048 | $ | 46 | $ | 6,144 | |||||||
Proceeds from sales of securities | $ | 78,282 | $ | 44,782 | $ | 78,282 | $ | 352,224 |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||
Non-PCI Loans | PCI Loans | Total | Non-PCI Loans | PCI Loans | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial property (1) | |||||||||||||||||||||||
Retail | $ | 819,604 | $ | 2,470 | $ | 822,074 | $ | 735,501 | $ | 4,849 | $ | 740,350 | |||||||||||
Hospitality | 618,355 | 3,925 | 622,280 | 539,345 | 4,080 | 543,425 | |||||||||||||||||
Gas station | 271,552 | 2,833 | 274,385 | 319,363 | 4,292 | 323,655 | |||||||||||||||||
Other (2) | 1,088,687 | 5,147 | 1,093,834 | 973,243 | 5,418 | 978,661 | |||||||||||||||||
Construction | 67,439 | — | 67,439 | 23,387 | — | 23,387 | |||||||||||||||||
Residential property | 329,695 | 980 | 330,675 | 234,879 | 1,157 | 236,036 | |||||||||||||||||
Total real estate loans | 3,195,332 | 15,355 | 3,210,687 | 2,825,718 | 19,796 | 2,845,514 | |||||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||||||
Commercial term | 144,754 | 135 | 144,889 | 152,602 | 171 | 152,773 | |||||||||||||||||
Commercial lines of credit | 145,738 | — | 145,738 | 128,224 | — | 128,224 | |||||||||||||||||
International loans | 29,029 | — | 29,029 | 31,879 | — | 31,879 | |||||||||||||||||
Total commercial and industrial loans | 319,521 | 135 | 319,656 | 312,705 | 171 | 312,876 | |||||||||||||||||
Consumer loans (3) | 22,266 | 50 | 22,316 | 24,879 | 47 | 24,926 | |||||||||||||||||
Loans receivable | 3,537,119 | 15,540 | 3,552,659 | 3,163,302 | 20,014 | 3,183,316 | |||||||||||||||||
Allowance for loans losses | (33,439 | ) | (5,533 | ) | (38,972 | ) | (37,494 | ) | (5,441 | ) | (42,935 | ) | |||||||||||
Loans receivable, net | $ | 3,503,680 | $ | 10,007 | $ | 3,513,687 | $ | 3,125,808 | $ | 14,573 | $ | 3,140,381 |
(1) | Includes owner-occupied property loans of $715.9 million and $737.5 million as of September 30, 2016 and December 31, 2015, respectively. |
(2) | Includes, among other property types, mixed-use, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represent less than one percent of the Bank's total loans. |
(3) | Consumer loans include home equity lines of credit of $19.3 million and $21.8 million as of September 30, 2016 and December 31, 2015, respectively. |
Real Estate | Commercial and Industrial | Total Non-PCI | |||||||||
(in thousands) | |||||||||||
September 30, 2016 | |||||||||||
Loans held for sale, at beginning of period | $ | 9,293 | $ | 3,540 | $ | 12,833 | |||||
Originations | 11,272 | 6,417 | 17,689 | ||||||||
Sales | (15,968 | ) | (8,122 | ) | (24,090 | ) | |||||
Principal payoffs and amortization | (2 | ) | (5 | ) | (7 | ) | |||||
Loans held for sale, at end of period | $ | 4,595 | $ | 1,830 | $ | 6,425 | |||||
September 30, 2015 | |||||||||||
Loans held for sale, at beginning of period | $ | 2,067 | $ | 2,091 | $ | 4,158 | |||||
Originations | 13,867 | 7,464 | 21,331 | ||||||||
Sales | (12,199 | ) | (8,408 | ) | (20,607 | ) | |||||
Principal payoffs and amortization | (3 | ) | (8 | ) | (11 | ) | |||||
Loans held for sale, at end of period | $ | 3,732 | $ | 1,139 | $ | 4,871 |
Real Estate | Commercial and Industrial | Total Non-PCI | |||||||||
(in thousands) | |||||||||||
September 30, 2016 | |||||||||||
Loans held for sale, at beginning of period | $ | 840 | $ | 2,034 | $ | 2,874 | |||||
Originations | 40,120 | 20,128 | 60,248 | ||||||||
Sales | (36,361 | ) | (20,304 | ) | (56,665 | ) | |||||
Principal payoffs and amortization | (4 | ) | (28 | ) | (32 | ) | |||||
Loans held for sale, at end of period | $ | 4,595 | $ | 1,830 | $ | 6,425 | |||||
September 30, 2015 | |||||||||||
Loans held for sale, at beginning of period | $ | 3,323 | $ | 2,128 | $ | 5,451 | |||||
Originations | 37,601 | 21,672 | 59,273 | ||||||||
Reclassification from loans receivable | 360 | — | 360 | ||||||||
Sales | (37,534 | ) | (22,616 | ) | (60,150 | ) | |||||
Principal payoffs and amortization | (18 | ) | (45 | ) | (63 | ) | |||||
Loans held for sale, at end of period | $ | 3,732 | $ | 1,139 | $ | 4,871 |
As of and for the Three Months Ended | |||||||||||||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||||||||||||
Non-PCI Loans | PCI Loans | Total | Non-PCI Loans | PCI Loans | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | 34,259 | $ | 5,448 | $ | 39,707 | $ | 49,468 | $ | 1,352 | $ | 50,820 | |||||||||||
Charge-offs | (111 | ) | (5 | ) | (116 | ) | (1,748 | ) | — | (1,748 | ) | ||||||||||||
Recoveries on loans previously charged off | 831 | — | 831 | 992 | — | 992 | |||||||||||||||||
Net loan (charge-offs) recoveries | 720 | (5 | ) | 715 | (756 | ) | — | (756 | ) | ||||||||||||||
(Negative provision) provision | (1,540 | ) | 90 | (1,450 | ) | (5,490 | ) | 1,786 | (3,704 | ) | |||||||||||||
Balance at end of period | $ | 33,439 | $ | 5,533 | $ | 38,972 | $ | 43,222 | $ | 3,138 | $ | 46,360 |
As of and for the Nine Months Ended | |||||||||||||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||||||||||||
Non-PCI Loans | PCI Loans | Total | Non-PCI Loans | PCI Loans | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | 37,494 | $ | 5,441 | $ | 42,935 | $ | 51,640 | $ | 1,026 | $ | 52,666 | |||||||||||
Charge-offs | (1,410 | ) | (142 | ) | (1,552 | ) | (3,004 | ) | — | (3,004 | ) | ||||||||||||
Recoveries on loans previously charged off | 2,079 | — | 2,079 | 4,477 | — | 4,477 | |||||||||||||||||
Net loan (charge-offs) recoveries | 669 | (142 | ) | 527 | 1,473 | — | 1,473 | ||||||||||||||||
(Negative provision) provision | (4,724 | ) | 234 | (4,490 | ) | (9,891 | ) | 2,112 | (7,779 | ) | |||||||||||||
Balance at end of period | $ | 33,439 | $ | 5,533 | $ | 38,972 | $ | 43,222 | $ | 3,138 | $ | 46,360 |
Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
September 30, 2016 | |||||||||||||||||||
Allowance for loan losses on Non-PCI loans: | |||||||||||||||||||
Beginning balance | $ | 28,116 | $ | 5,502 | $ | 242 | $ | 399 | $ | 34,259 | |||||||||
Charge-offs | (18 | ) | (93 | ) | — | — | (111 | ) | |||||||||||
Recoveries on loans previously charged off | 337 | 494 | — | — | 831 | ||||||||||||||
Negative provision | (479 | ) | (622 | ) | (40 | ) | (399 | ) | (1,540 | ) | |||||||||
Ending balance | $ | 27,956 | $ | 5,281 | $ | 202 | $ | — | $ | 33,439 | |||||||||
Ending balance: individually evaluated for impairment | $ | 2,723 | $ | 495 | $ | — | $ | — | $ | 3,218 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 25,233 | $ | 4,786 | $ | 202 | $ | — | $ | 30,221 | |||||||||
Non-PCI loans receivable: | |||||||||||||||||||
Ending balance | $ | 3,195,332 | $ | 319,521 | $ | 22,266 | $ | — | $ | 3,537,119 | |||||||||
Ending balance: individually evaluated for impairment | $ | 18,522 | $ | 4,705 | $ | 680 | $ | — | $ | 23,907 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 3,176,810 | $ | 314,816 | $ | 21,586 | $ | — | $ | 3,513,212 | |||||||||
Allowance for loan losses on PCI loans: | |||||||||||||||||||
Beginning balance | $ | 5,400 | $ | 41 | $ | 7 | $ | — | $ | 5,448 | |||||||||
Charge-offs | (5 | ) | — | — | — | (5 | ) | ||||||||||||
Provision | 89 | 1 | — | — | 90 | ||||||||||||||
Ending balance: acquired with deteriorated credit quality | $ | 5,484 | $ | 42 | $ | 7 | $ | — | $ | 5,533 | |||||||||
PCI loans receivable | $ | 15,355 | $ | 135 | $ | 50 | $ | — | $ | 15,540 | |||||||||
September 30, 2015 | |||||||||||||||||||
Allowance for loan losses on Non-PCI loans: | |||||||||||||||||||
Beginning balance | $ | 39,898 | $ | 8,245 | $ | 172 | $ | 1,153 | $ | 49,468 | |||||||||
Charge-offs | (334 | ) | (1,414 | ) | — | — | (1,748 | ) | |||||||||||
Recoveries on loans previously charged off | 745 | 244 | 3 | — | 992 | ||||||||||||||
(Negative provision) provision | (5,867 | ) | 700 | (78 | ) | (245 | ) | (5,490 | ) | ||||||||||
Ending balance | $ | 34,442 | $ | 7,775 | $ | 97 | $ | 908 | $ | 43,222 | |||||||||
Ending balance: individually evaluated for impairment | $ | 3,500 | $ | 846 | $ | — | $ | — | $ | 4,346 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 30,942 | $ | 6,929 | $ | 97 | $ | 908 | $ | 38,876 | |||||||||
Non-PCI loans receivable: | |||||||||||||||||||
Ending balance | $ | 2,714,645 | $ | 280,591 | $ | 24,691 | $ | — | $ | 3,019,927 | |||||||||
Ending balance: individually evaluated for impairment | $ | 28,372 | $ | 7,851 | $ | 1,689 | $ | — | $ | 37,912 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 2,686,273 | $ | 272,740 | $ | 23,002 | $ | — | $ | 2,982,015 | |||||||||
Allowance for loan losses on PCI loans: | |||||||||||||||||||
Beginning balance | $ | 1,289 | $ |