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BUSINESS COMBINATIONS | 3 Months Ended
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Mar. 31, 2015
Business Combinations [Abstract] |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The Company completed the following acquisitions between January 1, 2014 and March 31, 2015 and used the acquisition method of accounting. Accordingly, the operating results of the acquired entities have been included in the consolidated financial statements from their respective dates of acquisition. The following table presents a summary of acquired assets and assumed liabilities along with a summary of the acquisition consideration as of the dates of acquisition:
| Acquisition and Date Acquired
| Banco Popular Branches |  | Renovation Ready
| November 8, 2014 |  | January 31, 2014
| (In thousands)
Assets acquired: |  |  |
Cash and due from banks | $ | 5,532 |  |  | $ | — |
Loans and leases receivable | 1,072,449 |  |  | — |
Premises, equipment, and capital leases | 9,002 |  |  | — |
Goodwill | — |  |  | 2,239 |
Other intangible assets | 15,777 |  |  | 761 |
Other assets | 2,301 |  |  | — |
Total assets acquired | $ | 1,105,061 |  |  | $ | 3,000 |
Liabilities assumed: |  |  |
Deposits | $ | 1,076,614 |  |  | $ | — |
Other liabilities | 506 |  |  | 1,000 |
Total liabilities assumed | 1,077,120 |  |  | 1,000 |
Total consideration paid | $ | 27,941 |  |  | $ | 2,000 |
Summary of consideration |  |  |
Cash paid | $ | 27,941 |  |  | $ | 1,000 |
Common stock issued | — |  |  | 1,000 |
Earn-out liabilities | — |  |  | 1,000 |
Banco Popular’s California Branch Network Acquisition Effective November 8, 2014, the Bank acquired 20 full-service branches from Banco Popular North America (BPNA) in the Southern California banking market (the BPNA Branch Acquisition). The purchase price, net of deposit premiums received of $3.9 million, was $24.0 million. The transaction added $1.07 billion in loans and $1.08 billion in deposits to the Bank. The following table summarizes the total consideration transferred as part of the BPNA Branch Acquisition as well as the fair value adjustments to the net assets acquired as of the acquisition date:
| November 8, 2014
| (In thousands)
Total Consideration |  |  | $ | 27,941 |
Net assets pre-acquisition |  |  | 24,027 |
Fair value adjustments |  |  |
Loans receivable | $ | (12,165 | ) |  |
Core deposit intangibles | 15,777 |  |  |
Certificates of deposit purchase premium | (916 | ) |  |
Premises and equipment | 1,218 |  |  |
Total fair value adjustments |  |  | 3,914 |
Fair value of net assets acquired |  |  | 27,941 |
Net fair value in excess of consideration |  |  | $ | — |
The fair value of loans acquired from BPNA was estimated by utilizing a methodology wherein similar loans were aggregated into pools. Cash flows for each pool were determined by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on a market rate for similar loans. There was no carryover of BPNA's allowance for loan losses associated with the acquired loans as the loans were initially recorded at fair value. Core deposit intangible asset of $15.8 million recognized as part of the BPNA Branch Acquisition was valued using a net cost savings method and was calculated as the present value of the estimated net cost savings attributable to the core deposit base over the expected remaining life of the deposits. The cost savings derived from the core deposit balance was calculated as the difference between the prevailing alternative cost of funds and the estimated actual cost of the core deposits. The core deposit intangible is being amortized over its estimated useful life of 10 years using the sum of years-digits amortization methodology. The fair value of savings and transaction deposit accounts acquired from BPNA was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. Certificates of deposit were valued by projecting the expected cash flows based on the remaining contractual terms of the certificates of deposit. These cash flows were discounted based on market rates for certificates of deposit with corresponding remaining maturities. Direct costs related to the BPNA Branch Acquisition were expensed as incurred and amounted to $4.3 million for the year ended December 31, 2014. These included technology costs related to system conversion and professional fees. Certain valuations related to acquired loans receivable, premises and equipment, and other intangible assets and assumed deposits are still under review by management and considered preliminary and could differ significantly when management's review is finalized. RenovationReady® Acquisition Effective January 31, 2014, the Company acquired certain assets, including service contracts and intellectual property, of RenovationReady, a provider of specialized loan services to financial institutions and mortgage bankers that originate agency eligible residential renovation and construction loan products. The RenovationReady acquisition was accounted for under GAAP guidance for business combinations. The purchased identifiable intangible assets and assumed liabilities were recorded at their estimated fair values as of January 31, 2014. The Company recorded $2.2 million of goodwill and $761 thousand of other intangible assets. The other intangible assets are related to a customer relationship intangible. Pro Forma Information While the BPNA Branch Acquisition is considered a purchase of a business for accounting purposes, pro forma income statement information is not presented because the BPNA Branch Acquisition does not represent the acquisition of a business which has continuity both before and after the acquisition. Pro formation income statement information for RenovationReady is not presented because it is immaterial.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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