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 | ¨ |
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Item 2. | ||
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Item 4. | ||
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Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
(Unaudited) September 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Cash and due from banks | $ | 138,139 | $ | 147,235 | |||
Securities available for sale, at fair value (amortized cost of $597,944 as of September 30, 2017 and $521,053 as of December 31, 2016) | 598,440 | 516,964 | |||||
Loans held for sale, at the lower of cost or fair value | 6,469 | 9,316 | |||||
Loans and leases receivable, net of allowance for loan and lease losses of $32,492 as of September 30, 2017 and $32,429 as of December 31, 2016 | 4,162,863 | 3,812,340 | |||||
Accrued interest receivable | 12,098 | 10,987 | |||||
Premises and equipment, net | 26,648 | 28,698 | |||||
Other real estate owned ("OREO"), net | 1,946 | 7,484 | |||||
Customers’ liability on acceptances | 647 | 978 | |||||
Servicing assets | 10,428 | 10,564 | |||||
Goodwill and other intangible assets, net | 12,628 | 12,889 | |||||
Federal Home Loan Bank ("FHLB") stock, at cost | 16,385 | 16,385 | |||||
Income tax asset, net | 46,210 | 48,047 | |||||
Bank-owned life insurance | 50,268 | 49,440 | |||||
Prepaid expenses and other assets | 28,227 | 30,019 | |||||
Total assets | $ | 5,111,396 | $ | 4,701,346 | |||
Liabilities and stockholders’ equity | |||||||
Liabilities: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 1,293,538 | $ | 1,203,240 | |||
Interest-bearing | 3,005,472 | 2,606,497 | |||||
Total deposits | 4,299,010 | 3,809,737 | |||||
Accrued interest payable | 4,071 | 2,567 | |||||
Bank’s liability on acceptances | 657 | 978 | |||||
FHLB advances | 110,000 | 315,000 | |||||
Subordinated debentures | 117,140 | 18,978 | |||||
Accrued expenses and other liabilities | 21,271 | 23,061 | |||||
Total liabilities | 4,552,149 | 4,170,321 | |||||
Stockholders’ equity: | |||||||
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,059,166 shares (32,413,082 shares outstanding) as of September 30, 2017 and issued 32,946,197 shares (32,330,747 shares outstanding) as of December 31, 2016 | 33 | 33 | |||||
Additional paid-in capital | 564,787 | 562,446 | |||||
Accumulated other comprehensive income (loss), net of tax expense of $207 as of September 30, 2017 and tax benefit of $1,696 as of December 31, 2016 | 290 | (2,394 | ) | ||||
Retained earnings | 65,858 | 41,726 | |||||
Less: treasury stock, at cost; 646,084 shares as of September 30, 2017 and 615,450 shares as of December 31, 2016 | (71,721 | ) | (70,786 | ) | |||
Total stockholders’ equity | 559,247 | 531,025 | |||||
Total liabilities and stockholders’ equity | $ | 5,111,396 | $ | 4,701,346 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest and dividend income: | |||||||||||||||
Interest and fees on loans and leases | $ | 50,265 | $ | 41,150 | $ | 143,614 | $ | 120,862 | |||||||
Interest on securities | 3,188 | 2,701 | 8,657 | 8,604 | |||||||||||
Dividends on Federal Reserve Bank ("FRB") and FHLB stock | 286 | 419 | 943 | 1,540 | |||||||||||
Interest on deposits in other banks | 123 | 55 | 323 | 152 | |||||||||||
Total interest and dividend income | 53,862 | 44,325 | 153,537 | 131,158 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 7,071 | 4,358 | 18,687 | 11,769 | |||||||||||
Interest on FHLB advances | 198 | 179 | 714 | 673 | |||||||||||
Interest on subordinated debentures | 1,667 | 206 | 3,677 | 584 | |||||||||||
Total interest expense | 8,936 | 4,743 | 23,078 | 13,026 | |||||||||||
Net interest income before provision for loan and lease losses | 44,926 | 39,582 | 130,459 | 118,132 | |||||||||||
Loan and lease loss provision (income) | 269 | (1,450 | ) | 611 | (4,490 | ) | |||||||||
Net interest income after provision for loan and lease losses | 44,657 | 41,032 | 129,848 | 122,622 | |||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 2,678 | 2,883 | 7,667 | 8,782 | |||||||||||
Trade finance and other service charges and fees | 1,133 | 992 | 3,449 | 3,099 | |||||||||||
Gain on sales of Small Business Administration ("SBA") loans | 2,546 | 1,616 | 6,678 | 4,247 | |||||||||||
Disposition gains on Purchased Credit Impaired ("PCI") loans | 979 | 789 | 1,702 | 3,411 | |||||||||||
Net gain on sales of securities | 267 | 46 | 1,473 | 46 | |||||||||||
Other operating income | 1,213 | 2,348 | 4,764 | 5,423 | |||||||||||
Total noninterest income | 8,816 | 8,674 | 25,733 | 25,008 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 16,947 | 15,950 | 50,674 | 47,710 | |||||||||||
Occupancy and equipment | 3,883 | 3,917 | 11,743 | 11,351 | |||||||||||
Data processing | 1,779 | 1,330 | 5,148 | 4,219 | |||||||||||
Professional fees | 1,210 | 1,090 | 3,912 | 4,063 | |||||||||||
Supplies and communications | 755 | 821 | 2,135 | 2,266 | |||||||||||
Advertising and promotion | 1,147 | 1,153 | 2,964 | 2,769 | |||||||||||
OREO expense (income) | (16 | ) | 73 | 402 | 721 | ||||||||||
Merger and integration costs (income) | — | — | (40 | ) | — | ||||||||||
Other operating expenses | 2,955 | 4,003 | 7,905 | 9,170 | |||||||||||
Total noninterest expense | 28,660 | 28,337 | 84,843 | 82,269 | |||||||||||
Income before income tax expense | 24,813 | 21,369 | 70,738 | 65,361 | |||||||||||
Income tax expense | 9,890 | 8,248 | 27,576 | 23,288 | |||||||||||
Net income | $ | 14,923 | $ | 13,121 | $ | 43,162 | $ | 42,073 | |||||||
Basic earnings per share | $ | 0.46 | $ | 0.41 | $ | 1.34 | $ | 1.31 | |||||||
Diluted earnings per share | $ | 0.46 | $ | 0.41 | $ | 1.33 | $ | 1.31 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 32,095,286 | 31,912,470 | 32,058,705 | 31,880,466 | |||||||||||
Diluted | 32,255,814 | 32,088,233 | 32,230,319 | 32,031,295 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 14,923 | $ | 13,121 | $ | 43,162 | $ | 42,073 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Unrealized gain on securities: | |||||||||||||||
Unrealized holding gain (loss) arising during period | 529 | (2,629 | ) | 6,059 | 13,518 | ||||||||||
Less: reclassification adjustment for net gain included in net income | (267 | ) | (46 | ) | (1,473 | ) | (46 | ) | |||||||
Unrealized loss on interest-only strip of servicing assets | — | — | — | (9 | ) | ||||||||||
Income tax expense related to items of other comprehensive income | (109 | ) | 1,109 | (1,902 | ) | (5,593 | ) | ||||||||
Other comprehensive income, net of tax | 153 | (1,566 | ) | 2,684 | 7,870 | ||||||||||
Comprehensive income | $ | 15,076 | $ | 11,555 | $ | 45,846 | $ | 49,943 |
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 | 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 (loss) on securities available for sale, 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 | |||||||||||||||
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 | 22,125 | — | 22,125 | — | 270 | — | — | — | 270 | |||||||||||||||||||||||
Restricted stock awards, net of forfeitures | 90,844 | — | 90,844 | — | — | — | — | — | — | |||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 2,071 | — | — | — | 2,071 | |||||||||||||||||||||||
Restricted stock surrendered due to employee tax liability | — | (30,634 | ) | (30,634 | ) | — | — | — | — | (935 | ) | (935 | ) | |||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (19,030 | ) | — | (19,030 | ) | |||||||||||||||||||||
Net income | — | — | — | — | — | — | 43,162 | — | 43,162 | |||||||||||||||||||||||
Change in unrealized gain (loss) on securities available for sale, net of income taxes | — | — | — | — | — | 2,684 | — | — | 2,684 | |||||||||||||||||||||||
Balance at September 30, 2017 | 33,059,166 | (646,084 | ) | 32,413,082 | $ | 33 | $ | 564,787 | $ | 290 | $ | 65,858 | $ | (71,721 | ) | $ | 559,247 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 43,162 | $ | 42,073 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 9,353 | 10,848 | |||||
Share-based compensation expense | 2,071 | 2,329 | |||||
Loan and lease loss provision (income) | 611 | (4,490 | ) | ||||
Gain on sales of securities | (1,473 | ) | (46 | ) | |||
Gain on sales of SBA loans | (6,678 | ) | (4,247 | ) | |||
Loss (gain) on sale of premises and equipment | — | (1,053 | ) | ||||
Disposition gains on PCI loans | (1,702 | ) | (3,411 | ) | |||
Gain on sales of OREO | (482 | ) | — | ||||
Valuation adjustment on OREO | 884 | 721 | |||||
Origination of SBA loans held for sale | (81,716 | ) | (60,248 | ) | |||
Proceeds from sales of SBA loans | 92,715 | 61,494 | |||||
Change in accrued interest receivable | (1,111 | ) | (659 | ) | |||
Change in bank-owned life insurance | (828 | ) | (809 | ) | |||
Change in prepaid expenses and other assets | 1,894 | 3,791 | |||||
Change in income tax asset | (65 | ) | 1,436 | ||||
Change in accrued interest payable | 1,504 | (733 | ) | ||||
Change in accrued expenses and other liabilities | (2,316 | ) | (10,121 | ) | |||
Net cash provided by operating activities | 55,823 | 36,875 | |||||
Cash flows from investing activities: | |||||||
Proceeds from redemption of FRB stock | — | 14,423 | |||||
Proceeds from matured, called and repayment of securities | 51,117 | 98,771 | |||||
Proceeds from sales of securities available for sale | 70,333 | 78,282 | |||||
Proceeds from sales of OREO | 5,710 | 2,306 | |||||
Change in loans and leases receivable, excluding purchases | (191,594 | ) | (229,063 | ) | |||
Purchases of securities | (201,398 | ) | (19,992 | ) | |||
Purchases of premises and equipment | (147 | ) | 982 | ||||
Purchases of loans receivable | (161,253 | ) | (143,189 | ) | |||
Purchases of FRB stock | — | (325 | ) | ||||
Net cash used in investing activities | (427,232 | ) | (197,805 | ) | |||
Cash flows from financing activities: | |||||||
Change in deposits | 489,273 | 261,231 | |||||
Change in overnight FHLB borrowings | (205,000 | ) | (115,000 | ) | |||
Issuance of subordinated debentures | 97,735 | — | |||||
Proceeds from exercise of stock options | 270 | 592 | |||||
Cash paid for treasury shares acquired in respect of share-based compensation | (935 | ) | (502 | ) | |||
Cash dividends paid | (19,030 | ) | (19,558 | ) | |||
Net cash provided by financing activities | 362,313 | 126,763 | |||||
Net decrease in cash and cash equivalents | (9,096 | ) | (34,167 | ) | |||
Cash and cash equivalents at beginning of year | 147,235 | 164,364 | |||||
Cash and cash equivalents at end of period | $ | 138,139 | $ | 130,197 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid (received) during the period for: | |||||||
Interest | $ | 23,078 | $ | 13,759 | |||
Income taxes | $ | 25,146 | $ | 21,654 | |||
Non-cash activities: | |||||||
Transfer of loans receivable to OREO | $ | 143 | $ | 4,318 | |||
Income tax expense related to items in other comprehensive income | $ | (1,902 | ) | $ | (5,593 | ) | |
Change in unrealized gain in accumulated other comprehensive income | $ | (6,059 | ) | $ | (13,518 | ) | |
Cash dividends declared | $ | (19,030 | ) | $ | (15,082 | ) |
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
September 30, 2017 | |||||||||||||||
Mortgage-backed securities (1) (2) | $ | 310,111 | $ | 793 | $ | 1,154 | $ | 309,750 | |||||||
Collateralized mortgage obligations (1) | 107,052 | 16 | 944 | 106,124 | |||||||||||
U.S. government agency securities | 7,499 | — | 42 | 7,457 | |||||||||||
SBA loan pool securities | 4,036 | — | 140 | 3,896 | |||||||||||
Municipal bonds-tax exempt | 146,177 | 2,424 | 77 | 148,524 | |||||||||||
U.S. treasury securities | 153 | — | — | 153 | |||||||||||
Mutual funds | 22,916 | — | 380 | 22,536 | |||||||||||
Total securities available for sale | $ | 597,944 | $ | 3,233 | $ | 2,737 | $ | 598,440 | |||||||
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 an estimated fair value of $8.1 million and $52.9 million as of September 30, 2017 and December 31, 2016, respectively. |
Available for Sale | |||||||
Amortized Cost | Estimated Fair Value | ||||||
(in thousands) | |||||||
Within one year | $ | 24,537 | $ | 24,452 | |||
Over one year through five years | 64,646 | 64,519 | |||||
Over five years through ten years | 256,367 | 257,279 | |||||
Over ten years | 252,394 | 252,190 | |||||
Total | $ | 597,944 | $ | 598,440 |
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, 2017 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 787 | $ | 171,919 | 53 | $ | 367 | $ | 21,430 | 9 | $ | 1,154 | $ | 193,349 | 62 | |||||||||||||||||
Collateralized mortgage obligations | 320 | 62,309 | 23 | 624 | 38,940 | 24 | 944 | 101,249 | 47 | |||||||||||||||||||||||
U.S. government agency securities | 42 | 7,457 | 3 | — | — | — | 42 | 7,457 | 3 | |||||||||||||||||||||||
SBA loan pool securities | — | — | — | 140 | 3,896 | 2 | 140 | 3,896 | 2 | |||||||||||||||||||||||
Municipal bonds-tax exempt | 60 | 3,459 | 3 | 17 | 1,704 | 4 | 77 | 5,163 | 7 | |||||||||||||||||||||||
U.S. treasury securities | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Mutual funds | 254 | 20,632 | 2 | 126 | 1,899 | 4 | 380 | 22,531 | 6 | |||||||||||||||||||||||
Total | $ | 1,463 | $ | 265,776 | 84 | $ | 1,274 | $ | 67,869 | 43 | $ | 2,737 | $ | 333,645 | 127 | |||||||||||||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Gross realized gains on sales of securities | $ | 267 | $ | 396 | $ | 1,473 | $ | 396 | |||||||
Gross realized losses on sales of securities | — | (350 | ) | — | (350 | ) | |||||||||
Net realized gains on sales of securities | $ | 267 | $ | 46 | $ | 1,473 | $ | 46 | |||||||
Proceeds from sales of securities | $ | 17,644 | $ | 78,282 | $ | 70,333 | $ | 78,282 |
September 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 | $ | 916,236 | $ | 1,587 | $ | 917,823 | $ | 857,629 | $ | 2,324 | $ | 859,953 | |||||||||||
Hospitality | 731,562 | 1,664 | 733,226 | 649,540 | 1,618 | 651,158 | |||||||||||||||||
Gas station | 245,042 | 2,388 | 247,430 | 260,187 | 2,692 | 262,879 | |||||||||||||||||
Other (1) | 1,144,176 | 2,013 | 1,146,189 | 1,107,589 | 2,067 | 1,109,656 | |||||||||||||||||
Construction | 64,263 | — | 64,263 | 55,962 | — | 55,962 | |||||||||||||||||
Residential property | 429,669 | 958 | 430,627 | 337,791 | 976 | 338,767 | |||||||||||||||||
Total real estate loans | 3,530,948 | 8,610 | 3,539,558 | 3,268,698 | 9,677 | 3,278,375 | |||||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||||||
Commercial term | 170,891 | 51 | 170,942 | 138,032 | 136 | 138,168 | |||||||||||||||||
Commercial lines of credit | 149,937 | — | 149,937 | 136,231 | — | 136,231 | |||||||||||||||||
International loans | 43,577 | — | 43,577 | 25,821 | — | 25,821 | |||||||||||||||||
Total commercial and industrial loans | 364,405 | 51 | 364,456 | 300,084 | 136 | 300,220 | |||||||||||||||||
Leases receivable | 272,271 | — | 272,271 | 243,294 | — | 243,294 | |||||||||||||||||
Consumer loans (2) | 19,027 | 43 | 19,070 | 22,830 | 50 | 22,880 | |||||||||||||||||
Loans and leases receivable | 4,186,651 | 8,704 | 4,195,355 | 3,834,906 | 9,863 | 3,844,769 | |||||||||||||||||
Allowance for loan and lease losses | (31,698 | ) | (794 | ) | (32,492 | ) | (31,458 | ) | (971 | ) | (32,429 | ) | |||||||||||
Loans and leases receivable, net | $ | 4,154,953 | $ | 7,910 | $ | 4,162,863 | $ | 3,803,448 | $ | 8,892 | $ | 3,812,340 |
(1) | Includes other property types which individually represent less than one percent of loans and leases receivable; other property types include mixed-use, apartment, office, industrial, faith-based facilities and warehouse. |
(2) | Consumer loans include home equity lines of credit of $14.7 million and $17.7 million as of September 30, 2017 and December 31, 2016, respectively. |
SBA Loans Held for Sale | |||||||||||
Real Estate | Commercial and Industrial | Total | |||||||||
(in thousands) | |||||||||||
September 30, 2017 | |||||||||||
Balance at beginning of period | $ | 8,817 | $ | 2,132 | $ | 10,949 | |||||
Originations | 16,326 | 11,723 | 28,049 | ||||||||
Sales | (20,593 | ) | (11,926 | ) | (32,519 | ) | |||||
Principal payoffs and amortization | (4 | ) | (6 | ) | (10 | ) | |||||
Balance at end of period | $ | 4,546 | $ | 1,923 | $ | 6,469 | |||||
September 30, 2016 | |||||||||||
Balance 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 | ) | |||||
Balance at end of period | $ | 4,595 | $ | 1,830 | $ | 6,425 |
SBA Loans Held for Sale | |||||||||||
Real Estate | Commercial and Industrial | Total | |||||||||
(in thousands) | |||||||||||
September 30, 2017 | |||||||||||
Balance at beginning of period | $ | 7,410 | $ | 1,906 | $ | 9,316 | |||||
Originations | 51,090 | 30,626 | 81,716 | ||||||||
Sales | (53,930 | ) | (30,586 | ) | (84,516 | ) | |||||
Principal payoffs and amortization | (24 | ) | (23 | ) | (47 | ) | |||||
Balance at end of period | $ | 4,546 | $ | 1,923 | $ | 6,469 | |||||
September 30, 2016 | |||||||||||
Balance 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 | ) | |||||
Balance at end of period | $ | 4,595 | $ | 1,830 | $ | 6,425 |
As of and for the Three Months Ended | |||||||||||||||||||||||
September 30, 2017 | September 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 | $ | 33,038 | $ | 720 | $ | 33,758 | $ | 34,259 | $ | 5,448 | $ | 39,707 | |||||||||||
Charge-offs | (2,405 | ) | — | (2,405 | ) | (111 | ) | (5 | ) | (116 | ) | ||||||||||||
Recoveries on loans and leases previously charged off | 871 | — | 871 | 831 | — | 831 | |||||||||||||||||
Net loan and lease (charge-offs) recoveries | (1,534 | ) | — | (1,534 | ) | 720 | (5 | ) | 715 | ||||||||||||||
Loan and lease loss provision (income) | 194 | 74 | 268 | (1,540 | ) | 90 | (1,450 | ) | |||||||||||||||
Balance at end of period | $ | 31,698 | $ | 794 | $ | 32,492 | $ | 33,439 | $ | 5,533 | $ | 38,972 |
As of and for the Nine Months Ended | |||||||||||||||||||||||
September 30, 2017 | September 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 | (3,256 | ) | — | (3,256 | ) | (1,410 | ) | (142 | ) | (1,552 | ) | ||||||||||||
Recoveries on loans and leases previously charged off | 2,709 | — | 2,709 | 2,079 | — | 2,079 | |||||||||||||||||
Net loan and lease (charge-offs) recoveries | (547 | ) | — | (547 | ) | 669 | (142 | ) | 527 | ||||||||||||||
Loan and lease loss provision (income) | 787 | (177 | ) | 610 | (4,724 | ) | 234 | (4,490 | ) | ||||||||||||||
Balance at end of period | $ | 31,698 | $ | 794 | $ | 32,492 | $ | 33,439 | $ | 5,533 | $ | 38,972 |
Real Estate | Commercial and Industrial | Leases Receivable | Consumer | Unallocated | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
As of and for the Three Months Ended September 30, 2017 | |||||||||||||||||||||||
Allowance for loan and lease losses on non-PCI loans and leases: | |||||||||||||||||||||||
Beginning balance | $ | 22,762 | $ | 6,979 | 2,033 | $ | 87 | $ | 1,177 | $ | 33,038 | ||||||||||||
Charge-offs | (146 | ) | (1,976 | ) | (283 | ) | — | — | (2,405 | ) | |||||||||||||
Recoveries on loans and leases previously charged off | 343 | 308 | 220 | — | — | 871 | |||||||||||||||||
Loan and lease loss provision (income) | (3,374 | ) | 1,183 | 2,867 | (23 | ) | (459 | ) | 194 | ||||||||||||||
Ending balance | $ | 19,585 | $ | 6,494 | $ | 4,837 | $ | 64 | $ | 718 | $ | 31,698 | |||||||||||
Ending balance: individually evaluated for impairment | $ | 3,882 | $ | 531 | $ | 2,008 | $ | — | $ | — | $ | 6,421 | |||||||||||
Ending balance: collectively evaluated for impairment | $ | 15,703 | $ | 5,963 | $ | 2,829 | $ | 64 | $ | 718 | $ | 25,277 | |||||||||||
Non-PCI loans and leases receivable: | |||||||||||||||||||||||
Ending balance | $ | 3,530,948 | $ | 364,405 | $ | 272,271 | $ | 19,027 | $ | — | $ | 4,186,651 | |||||||||||
Ending balance: individually evaluated for impairment | $ | 19,466 | $ | 3,610 | $ | 3,378 | $ | 1,045 | $ | — | $ | 27,499 | |||||||||||
Ending balance: collectively evaluated for impairment | $ | 3,511,482 | $ | 360,795 | $ | 268,893 | $ | 17,982 | $ | — | $ | 4,159,152 | |||||||||||
Allowance for loan losses on PCI loans: | |||||||||||||||||||||||
Beginning balance | $ | 671 | $ | 41 | $ | — | $ | 8 | $ | — | $ | 720 | |||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||
Loan loss provision (income) | 81 | — | — | (7 | ) | — | 74 | ||||||||||||||||
Ending balance | $ | 752 | $ | 41 | $ | — | $ | 1 | $ | — | $ | 794 | |||||||||||
PCI loans receivable: | |||||||||||||||||||||||
Ending balance: acquired with deteriorated credit quality | $ | 8,610 | $ | 51 | $ | — | $ | 43 | $ | — | $ | 8,704 |
Real Estate | Commercial and Industrial | Leases Receivable | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
As of and for the Three Months Ended September 30, 2016 | |||||||||||||||||||||||||
Allowance for loan and lease losses on non-PCI loans and leases: | |||||||||||||||||||||||||
Beginning balance | $ | 28,116 | $ | 5,502 | — | $ | 242 | $ | 399 | $ | 34,259 | ||||||||||||||
Charge-offs | (18 | ) | (93 | ) | — | — | — | (111 | ) | ||||||||||||||||
Recoveries on loans and leases previously charged off | 337 | 494 | — | — | — | 831 | |||||||||||||||||||
Loan and lease loss provision (income) | (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 and leases receivable: | |||||||||||||||||||||||||
Ending balance | $ | 3,195,332 | $ | 319,521 | $ | — | $ | 22,266 | $ | — | $ | 3,537,119 | |||||||||||||
Ending balance: individually evaluated for impairment | $ | 18,522 | $ | 4,705 |