BRANCH DIVESTITURES AND RESTRUCTURING CHARGES

6 Months Ended

Jun. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

BRANCH DIVESTITURES AND RESTRUCTURING CHARGES

BRANCH DIVESTITURES AND RESTRUCTURING CHARGES

Pending Branch Sales. On March 6, 2015, as amended on June 25, 2015, First Bank entered into a Branch Purchase and Assumption Agreement with Bank of Stockton that provides for the sale of certain assets and the transfer of certain liabilities of First Bank’s three branch banking offices located in Napa, Brentwood and Fairfield, California. Under the terms of the agreement, Bank of Stockton is to assume approximately $74.0 million of deposits associated with these branches. Bank of Stockton is also expected to purchase approximately $11.6 million of loans as well as certain other assets, including premises and equipment of $3.1 million, associated with these branches. The transaction, which is subject to certain closing conditions, is expected to be completed during the third quarter of 2015.

On May 20, 2015, First Bank entered into a Branch Purchase and Assumption Agreement with Fidelity Bank that provides for the sale of certain assets and the transfer of certain liabilities of First Bank’s remaining eight branch banking offices located in Bradenton, Palmetto and Longboat Key, Florida. Under the terms of the agreement, Fidelity Bank is to assume approximately $155.0 million of deposits associated with these branches. Fidelity Bank is also expected to purchase approximately $30.9 million of loans as well as certain other assets, including premises and equipment of $6.4 million, associated with these branches. The transaction, which is subject to certain closing conditions, is expected to be completed during the third quarter of 2015.

Restructuring Charges on Retail Branch Offices and Other Facilities.The Company recorded certain restructuring charges associated with retail branch offices and other owned and leased facilities of $11.9 million and $17.6 million for the three and six months ended June 30, 2015, respectively. During the three and six months ended June 30, 2015, the Company recorded restructuring charges of $4.6 million related to seven retail branches that have been closed or are scheduled to be closed in order to adjust the carrying value of these facilities to fair value less estimated selling costs and/or adjust leases to the present value of current market rental rates in comparison to the contractual obligations on the leased facilities. During the three and six months ended June 30, 2015, the Company also recorded restructuring charges of $6.5 million and $12.2 million, respectively, on nine other facilities in order to adjust the carrying value of these facilities to fair value less estimated selling costs and/or adjust leases to the present value of current market rental rates in comparison to the contractual obligations on the leased facilities.