Loans Held for Investment (Tables)

9 Months Ended

Sep. 30, 2013

Summary of composition of loan portfolio

	September 30, 2013			December 31, 2012			September 30, 2012
	(in thousands)
Business loans:
Commercial and industrial	$	173,720		$	115,354		$	88,105
Commercial owner occupied (1)	222,162			150,934			148,139
SBA	6,455			6,882			4,736
Warehouse facilities	49,104			195,761			112,053
Real estate loans:
Commercial non-owner occupied	304,979			253,409			262,046
Multi-family	218,929			156,424			173,484
One-to-four family (2)	152,667			97,463			62,771
Construction	2,835			—			308
Land	7,371			8,774			11,005
Other loans	3,793			1,193			2,191
Total gross loans (3)	1,142,015			986,194			864,838
Less loans held for sale, net	3,176			3,681			4,728
Total gross loans held for investment	1,138,839			982,513			860,110
Less:
Deferred loan origination costs (fees) and premiums (discounts), net	130			(306		)	(737		)
Allowance for loan losses	(7,994		)	(7,994		)	(7,658		)
Loans held for investment, net	$	1,130,975		$	974,213		$	851,715

(1) Majority secured by real estate.

(2) Includes second trust deeds.

(3) Total gross loans for September 30, 2013 are net of the unaccreted mark-to-market discounts on Canyon National loans of $2.3 million, on Palm Desert National loans of $3.7 million, and on SDTB loans of $230,000 and of the mark-to-market premium on FAB loans of $103,000.

Summary of Company's investment in purchased credit impaired loans, acquired from Canyon National and Palm Desert National

	September 30, 2013
	Canyon National		Palm Desert National		Total
	(in thousands)
Business loans:
Commercial and industrial	$	79	$	174	$	253
Commercial owner occupied	942		—		942
SBA	—		—		—
Warehouse facilities	—		—		—
Real estate loans:
Commercial non-owner occupied	1,009		—		1,009
Multi-family	—		—		—
One-to-four family	—		21		21
Construction	—		—		—
Land	—		—		—
Other loans	—		—		—
Total purchase credit impaired	$	2,030	$	195	$	2,225

Summary of accretable yield on purchased credit impaired

	Nine Months Ended September 30, 2013
	Canyon National			Palm Desert National			Total
	(in thousands)
Balance at the beginning of period	$	2,029		$	247		$	2,276
Accretable yield at acquisition	—			—			—
Accretion	(348		)	(49		)	(397		)
Disposals and other	(31		)	(514		)	(545		)
Change in accretable yield	157			448			605
Balance at the end of period	$	1,807		$	132		$	1,939

Summary of Company's investment in impaired loans

	Contractual				Impaired Loans				Specific
	Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
September 30, 2013
Business loans:
Commercial and industrial	$	186	$	68	$	—	$	68	$	—	$	326	$	71
Commercial owner occupied	—		—		—		—		—		153		18
SBA	246		14		—		14		—		60		16
Real estate loans:
Commercial non-owner occupied	527		437		—		437		—		983		157
Multi-family	—		—		—		—		—		144		2
One-to-four family	701		642		282		360		104		772		154
Totals	$	1,660	$	1,161	$	282	$	879	$	104	$	2,438	$	418

	Contractual				Impaired Loans				Specific
	Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
December 31, 2012
Business loans:
Commercial and industrial	$	707	$	593	$	287	$	306	$	270	$	203	$	29
Commercial owner occupied	—		—		—		—		—		444		—
SBA	810		259		—		259		—		468		21
Real estate loans:
Commercial non-owner occupied	746		670		—		670		—		1,031		59
Multi-family	315		266		—		266		—		1,123		22
One-to-four family	960		948		541		407		395		720		59
Totals	$	3,538	$	2,736	$	828	$	1,908	$	665	$	3,989	$	190

	Contractual				Impaired Loans				Specific
	Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
September 30, 2012
Business loans:
Commercial and industrial	$	59	$	60	$	60	$	—	$	36	$	140	$	3
Commercial owner occupied	—		—		—		—		—		592		—
SBA	1,368		309		—		309		—		518		37
Real estate loans:
Commercial non-owner occupied	507		460		—		460		—		1,257		15
Multi-family	1,437		1,394		—		1,394		—		1,408		67
One-to-four family	657		643		299		344		153		656		31
Totals	$	4,028	$	2,866	$	359	$	2,507	$	189	$	4,571	$	153

Summary of additional detail on components of impaired loans

	September 30, 2013		December 31, 2012		September 30, 2012
	(in thousands)
Nonaccruing loans	$	972	$	1,988	$	1,439
Accruing loans	189		748		1,427
Total impaired loans	$	1,161	$	2,736	$	2,866

Summary of loan portfolio by the Company's internal risk grading system

	Credit Risk Grades
			Special				Total Gross
	Pass		Mention		Substandard		Loans
	(in thousands)
September 30, 2013
Business loans:
Commercial and industrial	$	170,840	$	68	$	2,812	$	173,720
Commercial owner occupied	207,519		2,632		12,011		222,162
SBA	6,455		—		—		6,455
Warehouse facilities	49,104		—		—		49,104
Real estate loans:
Commercial non-owner occupied	299,940		355		4,684		304,979
Multi-family	217,897		513		519		218,929
One-to-four family	151,564		—		1,103		152,667
Construction	2,835		—		—		2,835
Land	7,371		—		—		7,371
Other loans	3,787		—		6		3,793
Totals	$	1,117,312	$	3,568	$	21,135	$	1,142,015

	Credit Risk Grades
			Special				Total Gross
	Pass		Mention		Substandard		Loans
	(in thousands)
December 31, 2012
Business loans:
Commercial and industrial	$	111,895	$	92	$	3,367	$	115,354
Commercial owner occupied	136,330		2,674		11,930		150,934
SBA	6,819		—		63		6,882
Warehouse facilities	195,761		—		—		195,761
Real estate loans:
Commercial non-owner occupied	240,585		687		12,137		253,409
Multi-family	143,003		11,583		1,838		156,424
One-to-four family	96,061		—		1,402		97,463
Land	8,762		—		12		8,774
Other loans	1,177		—		16		1,193
Totals	$	940,393	$	15,036	$	30,765	$	986,194

	Credit Risk Grades
			Special				Total Gross
	Pass		Mention		Substandard		Loans
	(in thousands)
September 30, 2012
Business loans:
Commercial and industrial	$	86,000	$	847	$	1,258	$	88,105
Commercial owner occupied	137,289		3,334		7,516		148,139
SBA	4,455		—		281		4,736
Warehouse facilities	112,053		—		—		112,053
Real estate loans:
Commercial non-owner occupied	252,216		663		9,167		262,046
Multi-family	170,365		—		3,119		173,484
One-to-four family	61,378		—		1,393		62,771
Construction	308		—		—		308
Land	9,009		—		1,996		11,005
Other loans	2,174		—		17		2,191
Totals	$	835,247	$	4,844	$	24,747	$	864,838

Schedule of delinquencies in the Company's loan portfolio

			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
	(in thousands)
September 30, 2013
Business loans:
Commercial and industrial	$	173,478	$	163	$	79	$	—	$	173,720	$	78
Commercial owner occupied	222,162		—		—		—		222,162		—
SBA	6,312		—		129		14		6,455		142
Warehouse facilities	49,104		—		—		—		49,104		—
Real estate loans:
Commercial non-owner occupied	304,420		559		—		—		304,979		437
Multi-family	218,929		—		—		—		218,929		—
One-to-four family	152,570		—		—		97		152,667		496
Construction	2,835		—		—		—		2,835		—
Land	7,371		—		—		—		7,371		—
Other loans	3,785		2		6		—		3,793		—
Totals	$	1,140,966	$	724	$	214	$	111	$	1,142,015	$	1,153

			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
	(in thousands)
December 31, 2012
Business loans:
Commercial and industrial	$	115,078	$	—	$	58	$	218	$	115,354	$	347
Commercial owner occupied	150,689		—		245		—		150,934		14
SBA	6,697		—		—		185		6,882		260
Warehouse facilities	195,761		—		—		—		195,761		—
Real estate loans:
Commercial non-owner occupied	253,409		—		—		—		253,409		670
Multi-family	156,424		—		—		—		156,424		266
One-to-four family	97,283		101		—		79		97,463		522
Land	8,774		—		—		—		8,774		127
Other loans	1,188		5		—		—		1,193		—
Totals	$	985,303	$	106	$	303	$	482	$	986,194	$	2,206

			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
	(in thousands)
September 30, 2012
Business loans:
Commercial and industrial	$	87,984	$	—	$	121	$	—	$	88,105	$	—
Commercial owner occupied	147,812		327		—		—		148,139		218
SBA	4,551		—		—		185		4,736		266
Warehouse facilities	112,053		—		—		—		112,053		—
Real estate loans:
Commercial non-owner occupied	256,489		1,708		—		3,849		262,046		4,528
Multi-family	173,484		—		—		—		173,484		273
One-to-four family	62,307		301		43		120		62,771		578
Construction	308		—		—		—		308		—
Land	10,776		229		—		—		11,005		417
Other loans	2,191		—		—		—		2,191		—
Totals	$	857,955	$	2,565	$	164	$	4,154	$	864,838	$	6,280