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SUBSEQUENT EVENTS | 6 Months Ended
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Jun. 30, 2015
Subsequent Events [Abstract] |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Branch Sales On July 3, 2015, the Bank entered into a definitive agreement with Americas United Bank, a California banking corporation (AUB), pursuant to which the Bank has agreed to sell two branches and certain related assets and deposit liabilities to AUB as well as certain loans. Total loans and deposits to be transferred to AUB for the transaction totaled $43.7 million and $52.8 million, respectively, as of June 30, 2015, with the actual amount to be transferred determined as of the date the transaction closes. Additionally, as part of the transaction, the leases related to both locations are to be assumed by AUB. The transaction is expected to close in the third quarter of 2015, subject to obtaining regulatory approvals and satisfaction of other conditions to closing. Warrant Exercise Subsequent to June 30, 2015, a warrant for 240,000 shares of non-voting common stock that was originally issued to TCW Shared Opportunity Fund V, L.P. (Shop V Fund) was exercised in full. The original exercise price of the warrant was $11.00 per share, subject to certain adjustments. At the time of exercise, the warrant was held in separate portions by Crescent Special Situations Fund Legacy V, L.P. (CSSF Legacy V) and Crescent Special Situations Fund Investor Group, L.P. (CSSF Investor Group), two affiliated entities of Shop V Fund, and each portion was exercised in full using a cashless (net) exercise, resulting in a net number of shares of non-voting common stock issued in the aggregate of 70,690, which were immediately thereafter exchanged for an aggregate of 70,690 shares of voting common stock. Based on automatic adjustments to the original $11.00 exercise price, the exercise price at the time of exercise was $9.13 per share. BOLI Investment On July 14, 2015, the Bank made a $50.0 million investment in a Bank Owned Life Insurance (BOLI) policy issued by Northwestern Mutual Life Insurance Company (Northwestern), which is rated AAA by Fitch Ratings, Aaa by Moody's and AA+ by Standard and Poor’s. BOLI is a single premium purchase life insurance policy on the lives of a group of designated employees. The Bank is the owner of the policy and beneficiary of the policy. At June 30, 2015, the Bank owned $19.2 million in BOLI. The addition of $50.0 million will bring the Bank’s BOLI holdings to $69.2 million, which would be approximately 11 percent of Tier 1 Capital at June 30, 2015. Pursuant to guidelines of the OCC, BOLI holdings by a financial institution must not exceed 25 percent of Tier 1 capital. With respect to the BOLI investment, the Bank’s BOLI vendor and a provider to the Bank of certain compliance, accounting and management services related to the BOLI is BFS Financial Services Group (BFS Group), which was referred to the Bank by Kirk Wycoff, a principal of Patriot Financial Group, et. al., which holds 3,100,564 shares of the Company’s outstanding voting stock as reported in an Amended Schedule 13-D filed with the SEC on November 10, 2014. Mr. Wycoff’s son, Jordan Wycoff, is employed as a regional director of BFS Group. As long as BFS Group is the broker of record for the BOLI purchased from Northwestern, then the services BFS Group provides to the Bank are given free of charge, although BFS Group receives remuneration from Northwestern for the BOLI policies the Bank purchases that are issued by Northwestern. Management has evaluated subsequent events through the date of issuance of the financial data included herein. Other than the events disclosed above, there have been no subsequent events occurred during such period that would require disclosure in this report or would be required to be recognized in the Consolidated Financial Statements (Unaudited) as of June 30, 2015.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References No definition available. + Details
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