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Covered Assets and FDIC Indemnification Asset (Tables)
 12 Months Ended
Dec. 31, 2013
Covered Assets and FDIC Indemnification Asset [Abstract]  
Classification of covered loan balances
The following table presents the major types of covered loans. The classification of covered loan balances presented is reported in accordance with the regulatory reporting requirements.
(dollars in thousands)
December 31, 2013
 
City Bank
 
North County Bank
 
Total
Commercial
$
8,670

 
$
8,615

 
$
17,285

Real estate mortgages:
 

 
 

 
 

One-to-four family residential
2,630

 
8,339

 
10,969

Multi-family residential and commercial
79,338

 
42,734

 
122,072

Total real estate mortgages
81,968

 
51,073

 
133,041

Real estate construction:
 

 
 

 
 

One-to-four family residential
—

 
1,327

 
1,327

Multi-family and commercial
5,223

 
4,020

 
9,243

Total real estate construction
5,223

 
5,347

 
10,570

Consumer - direct
2,043

 
4,753

 
6,796

Subtotal
97,904

 
69,788

 
167,692

Fair value discount
(7,172
)
 
(8,565
)
 
(15,737
)
Total covered loans
90,732

 
61,223

 
151,955

Allowance for loan losses
(13,026
)
 
(1,596
)
 
(14,622
)
Total covered loans, net
$
77,706

 
$
59,627

 
$
137,333


(dollars in thousands)
December 31, 2012
 
City Bank
 
North County Bank
 
Total
Commercial
$
13,863

 
$
15,148

 
$
29,011

Real estate mortgages:
 

 
 

 
 

One-to-four family residential
3,783

 
10,412

 
14,195

Multi-family residential and commercial
132,280

 
52,303

 
184,583

Total real estate mortgages
136,063

 
62,715

 
198,778

Real estate construction:
 

 
 

 
 

One-to-four family residential
4,764

 
3,000

 
7,764

Multi-family and commercial
12,369

 
6,374

 
18,743

Total real estate construction
17,133

 
9,374

 
26,507

Consumer - direct
2,698

 
7,521

 
10,219

Subtotal
169,757

 
94,758

 
264,515

Fair value discount
(28,980
)
 
(18,196
)
 
(47,176
)
Total covered loans
140,777

 
76,562

 
217,339

Allowance for loan losses
(2,727
)
 
(525
)
 
(3,252
)
Total covered loans, net
$
138,050

 
$
76,037

 
$
214,087
Changes in accretable yield
The following table presents the changes in the accretable yield for each respective acquired loan portfolio:

(dollars in thousands)
For the Year Ended December 31,
 
2013
 
2012
 
City Bank
 
North County Bank
 
City Bank
 
North County Bank
Balance, beginning of period
$
49,168

 
$
19,567

 
$
78,004

 
$
29,574

Accretion to interest income
(13,315
)
 
(10,133
)
 
(21,282
)
 
(14,905
)
Disposals
(13,985
)
 
(3,487
)
 
(8,866
)
 
(6,546
)
Reclassification (to) from nonaccretable difference
(3,364
)
 
6,937

 
1,312

 
11,444

Balance, end of period
$
18,504

 
$
12,884

 
$
49,168

 
$
19,567
Schedule of covered other real estate owned
The following tables summarize the activity related to covered OREO:

(dollars in thousands)
For the Year Ended December 31, 2013
 
City Bank
 
North County Bank
 
Total
Balance, beginning of period
$
7,399

 
$
6,061

 
$
13,460

Additions to covered OREO
10,065

 
2,448

 
12,513

Dispositions of covered OREO, net
(12,321
)
 
(5,639
)
 
(17,960
)
Valuation adjustments
(1,145
)
 
(888
)
 
(2,033
)
Balance, end of period
$
3,998

 
$
1,982

 
$
5,980

 
(dollars in thousands)
For the Year Ended December 31, 2012
 
City Bank
 
North County Bank
 
Total
Balance, beginning of period
$
19,341

 
$
7,281

 
$
26,622

Additions to covered OREO
2,515

 
7,201

 
9,716

Dispositions of covered OREO, net
(11,991
)
 
(7,183
)
 
(19,174
)
Valuation adjustments
(2,466
)
 
(1,238
)
 
(3,704
)
Balance, end of period
$
7,399

 
$
6,061

 
$
13,460
Schedule of FDIC indemnification asset
(c) FDIC Indemnification Asset: 

The following table summarizes the activity related to the FDIC indemnification asset:

(dollars in thousands)
For the Year December 31, 2013
 
City Bank
 
North County Bank
 
Total
Balance, beginning of period
$
20,390

 
$
14,181

 
$
34,571

Change in FDIC indemnification asset
5,331

 
404

 
5,735

Reduction due to loans paid in full
(7,179
)
 
(2,146
)
 
(9,325
)
Transfers due from FDIC
(7,674
)
 
(8,771
)
 
(16,445
)
Balance, end of period
$
10,868

 
$
3,668

 
$
14,536

(dollars in thousands)
For the Year Ended December 31, 2012
 
City Bank
 
North County Bank
 
Total
Balance, beginning of period
$
43,235

 
$
22,351

 
$
65,586

Change in FDIC indemnification asset
(8,704
)
 
(422
)
 
(9,126
)
Reduction due to loans paid in full
(2,987
)
 
(2,597
)
 
(5,584
)
Transfers due from FDIC
(11,154
)
 
(5,151
)
 
(16,305
)
Balance, end of period
$
20,390

 
$
14,181

 
$
34,571