Loans Held for Investment (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of components of loans held for investment

The following table sets forth the composition of our loan portfolio in dollar amounts at the dates indicated:



	September 30, 2015			December 31, 2014			September 30, 2014
	(in thousands)
Business loans:
Commercial and industrial	$	288,982		$	228,979		$	218,871
Franchise	295,965			199,228			163,887
Commercial owner occupied (1)	302,556			210,995			215,938
SBA	70,191			28,404			20,482
Warehouse facilities	144,274			113,798			108,093
Real estate loans:
Commercial non-owner occupied	406,490			359,213			355,984
Multi-family	421,240			262,965			262,588
One-to-four family (2)	78,781			122,795			125,326
Construction	141,293			89,682			67,118
Land	12,758			9,088			6,103
Other loans	5,017			3,298			3,521
Total gross loans held for investment (3)	2,167,547			1,628,445			1,547,911
Deferred loan origination costs and premiums, net	309			177			93
Allowance for loan losses	(16,145		)	(12,200		)	(10,767		)
Loans held for investment, net	$	2,151,711		$	1,616,422		$	1,537,237

______________________________

(1) Majority secured by real estate.

(2) Includes second trust deeds.

(3) Total gross loans for September 30, 2015 are net of (i) the unaccreted mark-to-market discounts on Canyon National Bank ("Canyon National") loans of $0.6 million, on Palm Desert National Bank ("Palm Desert National") loans of $1.0 million, on San Diego Trust Bank ("SDTB") loans of $135,000, and on IDPK loans of $5.8 million and (ii) the mark-to-market premium on First Associations Bank ("FAB") loans of $5,000.

Summary of Company's investment in purchased credit impaired loans

The following table provides a summary of the Company’s investment in purchased credit impaired loans, acquired from Canyon National, Palm Desert National and IDPK, as of the period indicated:



	September 30, 2015
	Canyon National		Palm Desert National		IDPK		Total
	(in thousands)
Business loans:
Commercial and industrial	$	93	$	—	$	237	$	330
Commercial owner occupied	534		—		2,311		2,845
Real estate loans:
Commercial non-owner occupied	926		—		1,203		2,129
One-to-four family	—		—		88		88
Total purchase credit impaired	$	1,553	$	—	$	3,839	$	5,392

Summary of accretable yield on purchased credit impaired

The following table summarizes the accretable yield on the purchased credit impaired loans for the nine months ended September 30, 2015:



	Nine Months Ended
	September 30, 2015
	Canyon National			Palm Desert National			IDPK			Total
	(in thousands)
Balance at the beginning of period	$	1,351		$	52		$	—		$	1,403
Accretable yield at acquisition	—			—			602			602
Accretion	(164		)	—			(120		)	(284		)
Disposals and other	—			(52		)	(58		)	(110		)
Change in accretable yield	—			—			149			149
Balance at the end of period	$	1,187		$	—		$	573		$	1,760

Summary of Company's investment in impaired loans

The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated:



					Impaired Loans
	Contractual Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Specific Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
September 30, 2015
Business loans:
Franchise	$	2,394	$	1,630	$	—	$	1,630	—		$	1,647	$	—
Commercial owner occupied	436		361		—		361		—		364		23
Real estate loans:
Commercial non-owner occupied	693		443		—		443		—		443		21
One-to-four family	203		203		—		203		—		221		13
Land	37		22		—		22		—		23		3
Totals	$	3,763	$	2,659	$	—	$	2,659	$	—	$	2,698	$	60



					Impaired Loans
	Contractual Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Specific Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
December 31, 2014
Business loans:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	11	$	—
Commercial owner occupied	440		388		—		388		—		514		46
SBA	—		—		—		—		—		5		—
Real estate loans:
Commercial non-owner occupied	1,217		848		—		848		—		908		85
One-to-four family	256		236		—		236		—		440		17
Totals	$	1,913	$	1,472	$	—	$	1,472	$	—	$	1,878	$	148



					Impaired Loans
	Contractual Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Specific Allowance for Impaired Loans		Average Recorded Investment		Interest Income Recognized
	(in thousands)
September 30, 2014
Business loans:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	15	$	—
Commercial owner occupied	441		398		—		398		—		555		41
SBA	—		—		—		—		—		6		—
Real estate loans:
Commercial non-owner occupied	1,221		883		—		883		—		924		65
One-to-four family	649		526		—		526		—		504		18
Totals	$	2,311	$	1,807	$	—	$	1,807	$	—	$	2,004	$	124

Summary of additional detail on components of impaired loans

The following table provides additional detail on the components of impaired loans at the period end indicated:



	September 30, 2015		December 31, 2014		September 30, 2014
	(in thousands)
Nonaccruing loans	$	2,482	$	1,290	$	1,624
Accruing loans	177		182		183
Total impaired loans	$	2,659	$	1,472	$	1,807

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

The following tables stratify the loan portfolio by the Company’s internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio as of the periods indicated:



	Credit Risk Grades
	Pass		Special Mention		Substandard		Total Gross Loans
September 30, 2015	(in thousands)
Business loans:
Commercial and industrial	$	285,931	$	80	$	2,971	$	288,982
Franchise	294,335		—		1,630		295,965
Commercial owner occupied	291,121		1,274		10,161		302,556
SBA	70,191		—		—		70,191
Warehouse facilities	144,274		—		—		144,274
Real estate loans:
Commercial non-owner occupied	403,020		259		3,211		406,490
Multi-family	417,576		698		2,966		421,240
One-to-four family	77,729		—		1,052		78,781
Construction	141,293		—		—		141,293
Land	12,656		—		102		12,758
Other loans	5,017		—		—		5,017
Totals	$	2,143,143	$	2,311	$	22,093	$	2,167,547



	Credit Risk Grades
	Pass		Special Mention		Substandard		Total Gross Loans
December 31, 2014	(in thousands)
Business loans:
Commercial and industrial	$	227,151	$	—	$	1,828	$	228,979
Franchise	199,228		—		—		199,228
Commercial owner occupied	202,390		—		8,605		210,995
SBA	28,132		272		—		28,404
Warehouse facilities	113,798		—		—		113,798
Real estate loans:
Commercial non-owner occupied	355,274		—		3,939		359,213
Multi-family	261,956		501		508		262,965
One-to-four family	122,146		—		649		122,795
Construction	89,682		—		—		89,682
Land	9,088		—		—		9,088
Other loans	3,298		—		—		3,298
Totals	$	1,612,143	$	773	$	15,529	$	1,628,445



	Credit Risk Grades
	Pass		Special Mention		Substandard		Total Gross Loans
September 30, 2014	(in thousands)
Business loans:
Commercial and industrial	$	217,093	$	—	$	1,778	$	218,871
Franchise	163,887		—		—		163,887
Commercial owner occupied	206,096		387		9,455		215,938
SBA	20,482		—		—		20,482
Warehouse facilities	108,093		—		—		108,093
Real estate loans:
Commercial non-owner occupied	351,614		—		4,370		355,984
Multi-family	261,574		504		510		262,588
One-to-four family	124,383		—		943		125,326
Construction	67,118		—		—		67,118
Land	6,103		—		—		6,103
Other loans	3,521		—		—		3,521
Totals	$	1,529,964	$	891	$	17,056	$	1,547,911

Schedule of delinquencies in the Company's loan portfolio

The following tables set forth delinquencies in the Company’s loan portfolio at the dates indicated:



			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
September 30, 2015	(in thousands)
Business loans:
Commercial and industrial	$	288,269	$	681	$	25	$	7	$	288,982	$	237
Franchise	294,335		—		—		1,630		295,965		1,630
Commercial owner occupied	302,556		—		—		—		302,556		556
SBA	70,191		—		—		—		70,191		—
Warehouse facilities	144,274		—		—		—		144,274		—
Real estate loans:
Commercial non-owner occupied	406,047		—		—		443		406,490		1,424
Multi-family	421,240		—		—		—		421,240		—
One-to-four family	78,648		21		—		112		78,781		226
Construction	141,293		—		—		—		141,293		—
Land	12,736		—		—		22		12,758		22
Other loans	5,017		—		—		—		5,017		—
Totals	$	2,164,606	$	702	$	25	$	2,214	$	2,167,547	$	4,095



			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
December 31, 2014	(in thousands)
Business loans:
Commercial and industrial	$	228,955	$	—	$	24	$	—	$	228,979	$	—
Franchise	199,228		—		—		—		199,228		—
Commercial owner occupied	210,995		—		—		—		210,995		514
SBA	28,404		—		—		—		28,404		—
Warehouse facilities	113,798		—		—		—		113,798		—
Real estate loans:
Commercial non-owner occupied	359,213		—		—		—		359,213		848
Multi-family	262,965		—		—		—		262,965		—
One-to-four family	122,722		19		—		54		122,795		82
Construction	89,682		—		—		—		89,682		—
Land	9,088		—		—		—		9,088		—
Other loans	3,297		1		—		—		3,298		—
Totals	$	1,628,347	$	20	$	24	$	54	$	1,628,445	$	1,444



			Days Past Due								Non-
	Current		30-59		60-89		90+		Total		Accruing
September 30, 2014	(in thousands)
Business loans:
Commercial and industrial	$	218,871	$	—	$	—	$	—	$	218,871	$	—
Franchise	163,887		—		—		—		163,887		—
Commercial owner occupied	215,938		—		—		—		215,938		528
SBA	20,439		—		43		—		20,482		—
Warehouse facilities	108,093		—		—		—		108,093		—
Real estate loans:
Commercial non-owner occupied	355,984		—		—		—		355,984		882
Multi-family	262,588		—		—		—		262,588		—
One-to-four family	124,963		20		—		343		125,326		372
Construction	67,118		—		—		—		67,118		—
Land	6,103		—		—		—		6,103		—
Other loans	3,521		—		—		—		3,521		—
Totals	$	1,547,505	$	20	$	43	$	343	$	1,547,911	$	1,782