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 | ¨ | |
Emerging Growth Company | ¨ |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
(Unaudited) June 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Cash and due from banks | $ | 138,507 | $ | 147,235 | |||
Securities available for sale, at fair value (amortized cost of $571,611 as of June 30, 2017 and $521,053 as of December 31, 2016) | 571,846 | 516,964 | |||||
Loans held for sale, at the lower of cost or fair value | 10,949 | 9,316 | |||||
Loans and leases receivable, net of allowance for loan and lease losses of $33,758 as of June 30, 2017 and $32,429 as of December 31, 2016 | 4,039,304 | 3,812,340 | |||||
Accrued interest receivable | 11,167 | 10,987 | |||||
Premises and equipment, net | 26,869 | 28,698 | |||||
Other real estate owned ("OREO"), net | 4,321 | 7,484 | |||||
Customers’ liability on acceptances | 1,481 | 978 | |||||
Servicing assets | 10,480 | 10,564 | |||||
Goodwill and other intangible assets, net | 12,712 | 12,889 | |||||
Federal Home Loan Bank ("FHLB") stock, at cost | 16,385 | 16,385 | |||||
Income tax asset, net | 50,286 | 48,047 | |||||
Bank-owned life insurance | 49,982 | 49,440 | |||||
Prepaid expenses and other assets | 29,057 | 30,019 | |||||
Total assets | $ | 4,973,346 | $ | 4,701,346 | |||
Liabilities and stockholders’ equity | |||||||
Liabilities: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 1,260,929 | $ | 1,203,240 | |||
Interest-bearing | 2,998,244 | 2,606,497 | |||||
Total deposits | 4,259,173 | 3,809,737 | |||||
Accrued interest payable | 3,432 | 2,567 | |||||
Bank’s liability on acceptances | 1,481 | 978 | |||||
FHLB advances | 20,000 | 315,000 | |||||
Subordinated debentures | 117,011 | 18,978 | |||||
Accrued expenses and other liabilities | 22,109 | 23,061 | |||||
Total liabilities | 4,423,206 | 4,170,321 | |||||
Stockholders’ equity: | |||||||
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,039,034 shares (32,393,856 shares outstanding) as of June 30, 2017 and issued 32,946,197 shares (32,330,747 shares outstanding) as of December 31, 2016 | 33 | 33 | |||||
Additional paid-in capital | 563,948 | 562,446 | |||||
Accumulated other comprehensive income (loss), net of tax expense of $98 as of June 30, 2017 and tax benefit of $1,696 as of December 31, 2016 | 137 | (2,394 | ) | ||||
Retained earnings | 57,717 | 41,726 | |||||
Less: treasury stock, at cost; 645,178 shares as of June 30, 2017 and 615,450 shares as of December 31, 2016 | (71,695 | ) | (70,786 | ) | |||
Total stockholders’ equity | 550,140 | 531,025 | |||||
Total liabilities and stockholders’ equity | $ | 4,973,346 | $ | 4,701,346 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest and dividend income: | |||||||||||||||
Interest and fees on loans and leases | $ | 47,971 | $ | 40,645 | $ | 93,349 | $ | 79,712 | |||||||
Interest on securities | 2,949 | 2,886 | 5,468 | 5,903 | |||||||||||
Dividends on Federal Reserve Bank ("FRB") and FHLB stock | 283 | 579 | 657 | 1,121 | |||||||||||
Interest on deposits in other banks | 123 | 49 | 200 | 97 | |||||||||||
Total interest and dividend income | 51,326 | 44,159 | 99,674 | 86,833 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 6,463 | 3,684 | 11,617 | 7,410 | |||||||||||
Interest on FHLB advances | 49 | 299 | 517 | 494 | |||||||||||
Interest on subordinated debentures | 1,636 | 196 | 2,009 | 379 | |||||||||||
Total interest expense | 8,148 | 4,179 | 14,143 | 8,283 | |||||||||||
Net interest income before provision for loan and lease losses | 43,178 | 39,980 | 85,531 | 78,550 | |||||||||||
Loan and lease loss provision (income) | 422 | (1,515 | ) | 342 | (3,040 | ) | |||||||||
Net interest income after provision for loan and lease losses | 42,756 | 41,495 | 85,189 | 81,590 | |||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 2,461 | 2,898 | 4,989 | 5,899 | |||||||||||
Trade finance and other service charges and fees | 1,269 | 1,064 | 2,316 | 2,109 | |||||||||||
Gain on sales of Small Business Administration ("SBA") loans | 2,668 | 1,774 | 4,132 | 2,632 | |||||||||||
Disposition gains on Purchased Credit Impaired ("PCI") loans | 540 | 1,963 | 723 | 2,622 | |||||||||||
Net gain on sales of securities | 938 | — | 1,206 | — | |||||||||||
Other operating income | 1,826 | 1,674 | 3,551 | 3,072 | |||||||||||
Total noninterest income | 9,702 | 9,373 | 16,917 | 16,334 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 16,623 | 16,061 | 33,727 | 31,759 | |||||||||||
Occupancy and equipment | 3,878 | 3,938 | 7,861 | 7,434 | |||||||||||
Data processing | 1,738 | 1,454 | 3,369 | 2,889 | |||||||||||
Professional fees | 1,554 | 1,509 | 2,702 | 2,974 | |||||||||||
Supplies and communications | 745 | 709 | 1,379 | 1,445 | |||||||||||
Advertising and promotion | 1,015 | 1,094 | 1,817 | 1,616 | |||||||||||
OREO expense (income) | 519 | 183 | 418 | 648 | |||||||||||
Merger and integration costs (income) | (9 | ) | — | (40 | ) | — | |||||||||
Other operating expenses | 2,881 | 2,915 | 4,948 | 5,167 | |||||||||||
Total noninterest expense | 28,944 | 27,863 | 56,181 | 53,932 | |||||||||||
Income before income tax expense | 23,514 | 23,005 | 45,925 | 43,992 | |||||||||||
Income tax expense | 9,057 | 8,857 | 17,685 | 15,040 | |||||||||||
Net income | $ | 14,457 | $ | 14,148 | $ | 28,240 | $ | 28,952 | |||||||
Basic earnings per share | $ | 0.45 | $ | 0.44 | $ | 0.88 | $ | 0.90 | |||||||
Diluted earnings per share | $ | 0.45 | $ | 0.44 | $ | 0.87 | $ | 0.90 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 32,078,038 | 31,882,489 | 32,040,113 | 31,864,427 | |||||||||||
Diluted | 32,243,034 | 32,029,910 | 32,216,671 | 32,001,163 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 14,457 | $ | 14,148 | $ | 28,240 | $ | 28,952 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Unrealized gain on securities: | |||||||||||||||
Unrealized holding gain arising during period | 3,910 | 6,424 | 5,530 | 16,147 | |||||||||||
Less: reclassification adjustment for net gain included in net income | (938 | ) | — | (1,206 | ) | — | |||||||||
Unrealized loss on interest-only strip of servicing assets | — | (9 | ) | — | (9 | ) | |||||||||
Income tax expense related to items of other comprehensive income | (1,232 | ) | (2,658 | ) | (1,793 | ) | (6,702 | ) | |||||||
Other comprehensive income, net of tax | 1,740 | 3,757 | 2,531 | 9,436 | |||||||||||
Comprehensive income | $ | 16,197 | $ | 17,905 | $ | 30,771 | $ | 38,388 |
Common Stock - Number of Shares | Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares Issued | Treasury Shares | Shares Outstanding | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock, at Cost | Total Stockholders’ Equity | ||||||||||||||||||||||||
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 | 40,209 | — | 40,209 | — | 562 | — | — | — | 562 | |||||||||||||||||||||||
Restricted stock awards, net of forfeitures | 256,276 | — | 256,276 | — | — | — | — | — | — | |||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 1,542 | — | — | — | 1,542 | |||||||||||||||||||||||
Restricted stock surrendered due to employee tax liability | — | (10,524 | ) | (10,524 | ) | — | — | — | — | (247 | ) | (247 | ) | |||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (8,978 | ) | — | (8,978 | ) | |||||||||||||||||||||
Net income | — | — | — | — | — | — | 28,952 | — | 28,952 | |||||||||||||||||||||||
Change in unrealized gain (loss) on securities available for sale, net of income taxes | — | — | — | — | — | 9,436 | — | — | 9,436 | |||||||||||||||||||||||
Balance at June 30, 2016 | 32,863,007 | (602,687 | ) | 32,260,320 | $ | 33 | $ | 560,089 | $ | 9,121 | $ | 26,396 | $ | (70,454 | ) | $ | 525,185 | |||||||||||||||
Balance at January 1, 2017 | 32,946,197 | (615,450 | ) | 32,330,747 | $ | 33 | $ | 562,446 | $ | (2,394 | ) | $ | 41,726 | $ | (70,786 | ) | $ | 531,025 | ||||||||||||||
Stock options exercised | 11,500 | — | 11,500 | — | 139 | — | — | — | 139 | |||||||||||||||||||||||
Restricted stock awards, net of forfeitures | 81,337 | — | 81,337 | — | — | — | — | — | — | |||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 1,363 | — | — | — | 1,363 | |||||||||||||||||||||||
Restricted stock surrendered due to employee tax liability | — | (29,728 | ) | (29,728 | ) | — | — | — | — | (909 | ) | (909 | ) | |||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (12,249 | ) | — | (12,249 | ) | |||||||||||||||||||||
Net income | — | — | — | — | — | — | 28,240 | — | 28,240 | |||||||||||||||||||||||
Change in unrealized gain (loss) on securities available for sale, net of income taxes | — | — | — | — | — | 2,531 | — | — | 2,531 | |||||||||||||||||||||||
Balance at June 30, 2017 | 33,039,034 | (645,178 | ) | 32,393,856 | $ | 33 | $ | 563,948 | $ | 137 | $ | 57,717 | $ | (71,695 | ) | $ | 550,140 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 28,240 | $ | 28,952 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 7,081 | 7,595 | |||||
Share-based compensation expense | 1,363 | 1,542 | |||||
Loan and lease loss provision (income) | 342 | (3,040 | ) | ||||
Gain on sales of securities | (1,206 | ) | — | ||||
Gain on sales of SBA loans | (4,132 | ) | (2,632 | ) | |||
Loss (gain) on sale of premises and equipment | 76 | (35 | ) | ||||
Disposition gains on PCI loans | (723 | ) | (2,622 | ) | |||
Gain on sales of OREO | (532 | ) | — | ||||
Valuation adjustment on OREO | 949 | 648 | |||||
Origination of SBA loans held for sale | (53,667 | ) | (42,559 | ) | |||
Proceeds from sales of SBA loans | 56,938 | 35,119 | |||||
Change in accrued interest receivable | (180 | ) | (1,051 | ) | |||
Change in bank-owned life insurance | (542 | ) | (511 | ) | |||
Change in prepaid expenses and other assets | (508 | ) | 882 | ||||
Change in income tax assets | (4,032 | ) | (1,689 | ) | |||
Change in accrued interest payable | 865 | (70 | ) | ||||
Change in FDIC loss sharing liability | — | (1,271 | ) | ||||
Change in accrued expenses and other liabilities | 633 | (8,366 | ) | ||||
Net cash provided by operating activities | 30,965 | 10,892 | |||||
Cash flows from investing activities: | |||||||
Proceeds from matured, called and repayment of securities | 33,665 | 74,063 | |||||
Proceeds from sales of securities available for sale | 52,688 | — | |||||
Proceeds from sales of OREO | 3,386 | 1,297 | |||||
Change in loans and leases receivable, excluding purchases | (157,068 | ) | (171,240 | ) | |||
Purchases of securities | (138,777 | ) | — | ||||
Purchases of premises and equipment | 269 | (1,393 | ) | ||||
Purchases of loans receivable | (73,008 | ) | (97,200 | ) | |||
Purchases of FRB stock | — | (325 | ) | ||||
Net cash used in investing activities | (278,845 | ) | (194,798 | ) | |||
Cash flows from financing activities: | |||||||
Change in deposits | 449,436 | 79,313 | |||||
Change in overnight FHLB borrowings | (295,000 | ) | 110,000 | ||||
Issuance of subordinated debentures | 97,735 | — | |||||
Proceeds from exercise of stock options | 139 | 562 | |||||
Cash paid for treasury shares acquired in respect of share-based compensation | (909 | ) | (247 | ) | |||
Cash dividends paid | (12,249 | ) | (13,454 | ) | |||
Net cash provided by financing activities | 239,152 | 176,174 | |||||
Net decrease in cash and cash equivalents | (8,728 | ) | (7,732 | ) | |||
Cash and cash equivalents at beginning of year | 147,235 | 164,364 | |||||
Cash and cash equivalents at end of period | $ | 138,507 | $ | 156,632 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid (received) during the period for: | |||||||
Interest | $ | 14,143 | $ | 8,353 | |||
Income taxes | $ | 19,826 | $ | 16,486 | |||
Non-cash activities: | |||||||
Transfer of loans receivable to OREO | $ | 143 | $ | 4,318 | |||
Income tax expense related to items in other comprehensive income | $ | (1,793 | ) | $ | (6,702 | ) | |
Change in unrealized gain in accumulated other comprehensive income | $ | (5,530 | ) | $ | (16,147 | ) | |
Cash dividends declared | $ | (12,249 | ) | $ | (8,978 | ) |
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
June 30, 2017 | |||||||||||||||
Mortgage-backed securities (1) (2) | $ | 280,494 | $ | 767 | $ | 1,496 | $ | 279,765 | |||||||
Collateralized mortgage obligations (1) | 92,360 | 14 | 936 | 91,438 | |||||||||||
U.S. government agency securities | 7,499 | — | 42 | 7,457 | |||||||||||
SBA loan pool securities | 4,037 | — | 142 | 3,895 | |||||||||||
Municipal bonds-tax exempt | 158,614 | 2,567 | 118 | 161,063 | |||||||||||
Municipal bonds-taxable | 531 | 6 | — | 537 | |||||||||||
Corporate bonds | 5,006 | 16 | — | 5,022 | |||||||||||
U.S. treasury securities | 154 | — | — | 154 | |||||||||||
Mutual funds | 22,916 | — | 401 | 22,515 | |||||||||||
Total securities available for sale | $ | 571,611 | $ | 3,370 | $ | 3,135 | $ | 571,846 | |||||||
December 31, 2016 | |||||||||||||||
Mortgage-backed securities (1) (2) | $ | 230,489 | $ | 598 | $ | 1,457 | $ | 229,630 | |||||||
Collateralized mortgage obligations (1) | 77,447 | 6 | 1,002 | 76,451 | |||||||||||
U.S. government agency securities | 7,499 | — | 58 | 7,441 | |||||||||||
SBA loan pool securities | 4,356 | — | 210 | 4,146 | |||||||||||
Municipal bonds-tax exempt | 159,789 | 236 | 1,995 | 158,030 | |||||||||||
Municipal bonds-taxable | 13,391 | 319 | 9 | 13,701 | |||||||||||
Corporate bonds | 5,010 | 5 | — | 5,015 | |||||||||||
U.S. treasury securities | 156 | — | — | 156 | |||||||||||
Mutual funds | 22,916 | — | 522 | 22,394 | |||||||||||
Total securities available for sale | $ | 521,053 | $ | 1,164 | $ | 5,253 | $ | 516,964 |
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities. |
(2) | Includes securities collateralized by home equity conversion mortgages with total estimated fair value of $9.1 million and $52.9 million as of June 30, 2017 and December 31, 2016, respectively. |
Available for Sale | |||||||
Amortized Cost | Estimated Fair Value | ||||||
(in thousands) | |||||||
Within one year | $ | 15,692 | $ | 15,648 | |||
Over one year through five years | 59,465 | 59,365 | |||||
Over five years through ten years | 249,990 | 251,060 | |||||
Over ten years | 246,464 | 245,773 | |||||
Total | $ | 571,611 | $ | 571,846 |
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) | ||||||||||||||||||||||||||||||||
June 30, 2017 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 1,432 | $ | 189,400 | 62 | $ | 64 | $ | 6,868 | 2 | $ | 1,496 | $ | 196,268 | 64 | |||||||||||||||||
Collateralized mortgage obligations | 560 | 67,725 | 30 | 376 | 18,424 | 12 | 936 | 86,149 | 42 | |||||||||||||||||||||||
U.S. government agency securities | 42 | 7,457 | 3 | — | — | — | 42 | 7,457 | 3 | |||||||||||||||||||||||
SBA loan pool securities | — | — | — | 142 | 3,896 | 2 | 142 | 3,896 | 2 | |||||||||||||||||||||||
Municipal bonds-tax exempt | 118 | 5,128 | 7 | — | — | — | 118 | 5,128 | 7 | |||||||||||||||||||||||
U.S. treasury securities | — | 154 | 1 | — | — | — | — | 154 | 1 | |||||||||||||||||||||||
Mutual funds | 290 | 21,596 | 3 | 111 | 914 | 3 | 401 | 22,510 | 6 | |||||||||||||||||||||||
Total | $ | 2,442 | $ | 291,460 | 106 | $ | 693 | $ | 30,102 | 19 | $ | 3,135 | $ | 321,562 | 125 | |||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 1,345 | $ | 102,647 | 38 | $ | 112 | $ | 11,350 | 3 | $ | 1,457 | $ | 113,997 | 41 | |||||||||||||||||
Collateralized mortgage obligations | 676 | 60,786 | 27 | 326 | 10,579 | 7 | 1,002 | 71,365 | 34 | |||||||||||||||||||||||
U.S. government agency securities | 58 | 7,441 | 3 | — | — | — | 58 | 7,441 | 3 | |||||||||||||||||||||||
SBA loan pool securities | — | — | — | 210 | 4,146 | 2 | 210 | 4,146 | 2 | |||||||||||||||||||||||
Municipal bonds-tax exempt | 1,995 | 125,004 | 54 | — | — | — | 1,995 | 125,004 | 54 | |||||||||||||||||||||||
Municipal bonds-taxable | 9 | 2,904 | 2 | — | — | — | 9 | 2,904 | 2 | |||||||||||||||||||||||
Mutual funds | 413 | 21,478 | 4 | 109 | 916 | 3 | 522 | 22,394 | 7 | |||||||||||||||||||||||
Total | $ | 4,496 | $ | 320,260 | 128 | $ | 757 | $ | 26,991 | 15 | $ | 5,253 | $ | 347,251 | 143 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Gross realized gains on sales of securities | $ | 938 | $ | — | $ | 1,206 | $ | — | |||||||
Gross realized losses on sales of securities | — | — | — | — | |||||||||||
Net realized gains on sales of securities | $ | 938 | $ | — | $ | 1,206 | $ | — | |||||||
Proceeds from sales of securities | $ | 40,115 | $ | — | $ | 52,688 | $ | — |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Non-PCI Loans and Leases | PCI Loans | Total | Non-PCI Loans and Leases | PCI Loans | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial property | |||||||||||||||||||||||
Retail | $ | 914,470 | $ | 1,643 | $ | 916,113 | $ | 857,629 | $ | 2,324 | $ | 859,953 | |||||||||||
Hospitality | 737,369 | 1,698 | 739,067 | 649,540 | 1,618 | 651,158 | |||||||||||||||||
Gas station | 247,566 | 2,363 | 249,929 | 260,187 | 2,692 | 262,879 | |||||||||||||||||
Other (1) | 1,102,084 | 2,016 | 1,104,100 | 1,107,589 | 2,067 | 1,109,656 | |||||||||||||||||
Construction | 58,159 | — | 58,159 | 55,962 | — | 55,962 | |||||||||||||||||
Residential property | 382,692 | 965 | 383,657 | 337,791 | 976 | 338,767 | |||||||||||||||||
Total real estate loans | 3,442,340 | 8,685 | 3,451,025 | 3,268,698 | 9,677 | 3,278,375 | |||||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||||||
Commercial term | 159,432 | 55 | 159,487 | 138,032 | 136 | 138,168 | |||||||||||||||||
Commercial lines of credit | 148,421 | — | 148,421 | 136,231 | — | 136,231 | |||||||||||||||||
International loans | 39,328 | — | 39,328 | 25,821 | — | 25,821 | |||||||||||||||||
Total commercial and industrial loans | 347,181 | 55 | 347,236 | 300,084 | 136 | 300,220 | |||||||||||||||||
Leases receivable | 257,525 | — | 257,525 | 243,294 | — | 243,294 | |||||||||||||||||
Consumer loans (2) | 17,232 | 44 | 17,276 | 22,830 | 50 | 22,880 | |||||||||||||||||
Loans and leases receivable | 4,064,278 | 8,784 | 4,073,062 | 3,834,906 | 9,863 | 3,844,769 | |||||||||||||||||
Allowance for loan and lease losses | (33,038 | ) | (720 | ) | (33,758 | ) | (31,458 | ) | (971 | ) | (32,429 | ) | |||||||||||
Loans and leases receivable, net | $ | 4,031,240 | $ | 8,064 | $ | 4,039,304 | $ | 3,803,448 | $ | 8,892 | $ | 3,812,340 |
(1) | The remaining other real estate categories represent less than one percent of total loans and leases, which, among other property types, include mixed-use, apartment, office, industrial, faith-based facilities and warehouse. |
(2) | Consumer loans include home equity lines of credit of $15.1 million and $17.7 million as of June 30, 2017 and December 31, 2016, respectively. |
SBA Loans Held for Sale | |||||||||||
Real Estate | Commercial and Industrial | Total | |||||||||
(in thousands) | |||||||||||
June 30, 2017 | |||||||||||
Balance at beginning of period | $ | 7,789 | $ | 1,060 | $ | 8,849 | |||||
Originations | 22,130 | 12,344 | 34,474 | ||||||||
Sales | (21,083 | ) | (11,271 | ) | (32,354 | ) | |||||
Principal payoffs and amortization | (19 | ) | (1 | ) | (20 | ) | |||||
Balance at end of period | $ | 8,817 | $ | 2,132 | $ | 10,949 | |||||
June 30, 2016 | |||||||||||
Balance at beginning of period | $ | 1,824 | $ | 759 | $ | 2,583 | |||||
Originations | 22,376 | 8,031 | 30,407 | ||||||||
Sales | (14,905 | ) | (5,247 | ) | (20,152 | ) | |||||
Principal payoffs and amortization | (1 | ) | (4 | ) | (5 | ) | |||||
Balance at end of period | $ | 9,294 | $ | 3,539 | $ | 12,833 |
SBA Loans Held for Sale | |||||||||||
Real Estate | Commercial and Industrial | Total | |||||||||
(in thousands) | |||||||||||
June 30, 2017 | |||||||||||
Balance at beginning of period | $ | 7,410 | $ | 1,906 | $ | 9,316 | |||||
Originations | 34,763 | 18,904 | 53,667 | ||||||||
Sales | (33,337 | ) | (18,660 | ) | (51,997 | ) | |||||
Principal payoffs and amortization | (19 | ) | (18 | ) | (37 | ) | |||||
Balance at end of period | $ | 8,817 | $ | 2,132 | $ | 10,949 | |||||
June 30, 2016 | |||||||||||
Balance at beginning of period | $ | 840 | $ | 2,034 | $ | 2,874 | |||||
Originations | 28,849 | 13,710 | 42,559 | ||||||||
Sales | (20,393 | ) | (12,182 | ) | (32,575 | ) | |||||
Principal payoffs and amortization | (2 | ) | (23 | ) | (25 | ) | |||||
Balance at end of period | $ | 9,294 | $ | 3,539 | $ | 12,833 |
As of and for the Three Months Ended | |||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||||||
Non-PCI Loans and Leases | PCI Loans | Total | Non-PCI Loans and Leases | PCI Loans | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | 32,261 | $ | 891 | $ | 33,152 | $ | 35,381 | $ | 5,645 | $ | 41,026 | |||||||||||
Charge-offs | (665 | ) | — | (665 | ) | (662 | ) | (137 | ) | (799 | ) | ||||||||||||
Recoveries on loans and leases previously charged off | 849 | — | 849 | 995 | — | 995 | |||||||||||||||||
Net loan and lease (charge-offs) recoveries | 184 | — | 184 | 333 | (137 | ) | 196 | ||||||||||||||||
Loan and lease loss provision (income) | 593 | (171 | ) | 422 | (1,455 | ) | (60 | ) | (1,515 | ) | |||||||||||||
Balance at end of period | $ | 33,038 | $ | 720 | $ | 33,758 | $ | 34,259 | $ | 5,448 | $ | 39,707 |
As of and for the Six Months Ended | |||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||||||
Non-PCI Loans and Leases | PCI Loans | Total | Non-PCI Loans and Leases | PCI Loans | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | 31,458 | $ | 971 | $ | 32,429 | $ | 37,494 | $ | 5,441 | $ | 42,935 | |||||||||||
Charge-offs | (851 | ) | — | (851 | ) | (1,299 | ) | (137 | ) | (1,436 | ) | ||||||||||||
Recoveries on loans and leases previously charged off | 1,838 | — | 1,838 | 1,248 | — | 1,248 | |||||||||||||||||
Net loan and lease (charge-offs) recoveries | 987 | — | 987 | (51 | ) | (137 | ) | (188 | ) | ||||||||||||||
Loan and lease loss provision (income) | 593 | (251 | ) | 342 | (3,184 | ) | 144 | (3,040 | ) | ||||||||||||||
Balance at end of period | $ | 33,038 | $ | 720 | $ | 33,758 | $ | 34,259 | $ | 5,448 | $ | 39,707 |
Real Estate | Commercial and Industrial | Leases Receivable | Consumer | Unallocated | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
As of and for the Three Months Ended June 30, 2017 | |||||||||||||||||||||||
Allowance for loan and lease losses on non-PCI loans and leases: | |||||||||||||||||||||||
Beginning balance | $ | 24,760 | $ | 5,914 | 980 | $ | 122 | $ | 485 | $ | 32,261 | ||||||||||||
Charge-offs | (38 | ) | — | (627 | ) | — | — | (665 | ) | ||||||||||||||
Recoveries on loans and leases previously charged off | 447 | 367 | 20 | 15 | — | 849 | |||||||||||||||||
Loan and lease loss provision (income) | (2,407 | ) | 698 | 1,660 | (50 | ) | 692 | 593 | |||||||||||||||
Ending balance | $ | 22,762 | $ | 6,979 | $ | 2,033 | $ | 87 | $ | 1,177 | $ | 33,038 | |||||||||||
Ending balance: individually evaluated for impairment | $ | 3,638 | $ | 1,841 | $ | — | $ | — | $ | — | $ | 5,479 | |||||||||||
Ending balance: collectively evaluated for impairment | $ | 19,124 | $ | 5,138 | $ | 2,033 | $ | 87 | $ | 1,177 | $ | 27,559 | |||||||||||
Non-PCI loans and leases receivable: | |||||||||||||||||||||||
Ending balance | $ | 3,442,340 | $ | 347,181 | $ | 257,525 | $ | 17,232 | $ | — | $ | 4,064,278 | |||||||||||
Ending balance: individually evaluated for impairment | $ | 19,695 | $ | 5,275 | $ | — | $ | 1,224 | $ | — | $ | 26,194 | |||||||||||
Ending balance: collectively evaluated for impairment | $ | 3,422,645 | $ | 341,906 | $ | 257,525 | $ | 16,008 | $ | — | $ | 4,038,084 | |||||||||||
Allowance for loan losses on PCI loans: | |||||||||||||||||||||||
Beginning balance | $ | 842 | $ | 41 | $ | — | $ | 8 | $ | — | $ | 891 | |||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||
Loan loss provision (income) | (171 | ) | — | — | — | — | (171 | ) | |||||||||||||||
Ending balance | $ | 671 | $ | 41 | $ | — | $ | 8 | $ | — | $ | 720 | |||||||||||
PCI loans receivable: | |||||||||||||||||||||||
Ending balance: acquired with deteriorated credit quality | $ | 8,685 | $ | 55 | $ | — | $ | 44 | $ | — | $ | 8,784 |
Real Estate | Commercial and Industrial | Leases Receivable | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
As of and for the Three Months Ended June 30, 2016 | |||||||||||||||||||||||||
Allowance for loan and lease losses on non-PCI loans and leases: | |||||||||||||||||||||||||
Beginning balance | $ | 28,278 | $ | 6,289 | — | $ | 255 | $ | 559 | $ | 35,381 | ||||||||||||||
Charge-offs | (156 | ) | (506 | ) | — | — | — | (662 | ) | ||||||||||||||||
Recoveries on loans and leases previously charged off | 97 | 845 | — | 53 | — | 995 | |||||||||||||||||||
Loan and lease loss provision (income) | (103 | ) | (1,126 | ) | — | (66 | ) | (160 | ) | (1,455 | ) | ||||||||||||||
Ending balance | $ | 28,116 | $ | 5,502 | $ | — | $ | 242 | $ | 399 | $ | 34,259 | |||||||||||||
Ending balance: individually evaluated for impairment | $ | 2,589 | $ | 422 | $ | — | $ | — | $ | — | $ | 3,011 | |||||||||||||
Ending balance: collectively evaluated for impairment | $ | 25,527 | $ | 5,080 | $ | — | $ | — | $ | 242 | $ | 399 | $ | 31,248 | |||||||||||
Non-PCI loans and leases receivable: | |||||||||||||||||||||||||
Ending balance | $ | 3,116,749 | $ | 292,927 |