BRANCH DIVESTITURES AND RESTRUCTURING CHARGES

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

BRANCH DIVESTITURES AND RESTRUCTURING CHARGES

BRANCH DIVESTITURES AND RESTRUCTURING CHARGES

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 provided 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. The transaction was completed on September 25, 2015. Under the terms of the agreement, Bank of Stockton assumed $73.6 million of deposits associated with these branches. Bank of Stockton also purchased $11.7 million of loans as well as certain other assets, including premises and equipment of $3.2 million, associated with these branches. The transaction resulted in a gain of $3.4 million in the third quarter of 2015.

On May 20, 2015, First Bank entered into a Branch Purchase and Assumption Agreement with Fidelity Bank that provided 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. The transaction was completed on September 11, 2015. Under the terms of the agreement, Fidelity Bank assumed $150.8 million of deposits associated with these branches. Fidelity Bank also purchased $30.3 million of loans as well as certain other assets, including premises and equipment of $4.9 million, associated with these branches. The transaction resulted in a loss of $62,000 in the third quarter of 2015.

Restructuring Charges on Retail Branch Offices and Other Facilities.The Company recorded certain restructuring charges associated with closed retail branch offices and other owned and leased facilities of $961,000 and $18.5 million for the three and nine months ended September 30, 2015, respectively. During the three and nine months ended September 30, 2015, these restructuring charges included $154,000 and $4.7 million, respectively, related to seven retail branches that have been 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 nine months ended September 30, 2015, these restructuring charges also included $807,000 and $13.0 million, respectively, on ten other non-retail branch 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.