RESTRUCTURINGS

In connection with the sale of its Banc Home Loans division in 2017, the Company restructured certain aspects of its infrastructure and back office operations by realigning back office staffing resulting in certain severance and other employee related costs including accelerated vesting of equity awards, and amending certain system contracts in order to improve the Company's efficiency. These employees and systems primarily supported the Company's mortgage banking activities. The Company recognized $9.1 million of total restructuring expense during the year ended December 31, 2017.

On June 26, 2018, the Company announced a reduction in force to the Company’s workforce by approximately 9% of total staffing. In addition, the Company reduced the use of third party advisors during the third quarter of 2018, with each of these actions intended to align the Company’s cost structure with its focused commercial banking platform. The plan is expected to be fully completed during the fourth quarter of 2018. The Company incurred one-time severance-related costs in the second and third quarters of 2018 aggregating $4.5 million, pre-tax, related to the reduction in force. Additional one-time severance costs may be recognized in the fourth quarters of 2018 from executing the plan.

The Company had outstanding unpaid accrued liabilities of $688 thousand and $202 thousand, respectively, at September 30, 2018 and December 31, 2017. The following table presents activities in accrued liabilities and related expenses for the restructuring as of or for the three and nine months ended September 30, 2018:



	Expense
($ in thousands)	Continuing Operations		Discontinued Operations		Total		Accrued Liabilities
As of or For the Three Months Ended September 30, 2018
Balance at beginning of period							$	2,681
Accrual:
Severance and other employee related costs	$	553	$	—	$	553	553
Total	$	553	$	—	$	553	553
Payments:
Severance and other employee related costs							(2,546		)
Balance at end of period							$	688
As of or For the Nine Months Ended September 30, 2018
Balance at beginning of period							$	202
Accrual:
Severance and other employee related costs	$	4,536	$	—	$	4,536	4,536
Total	$	4,536	$	—	$	4,536	4,536
Payments:
Severance and other employee related costs							(4,050		)
Balance at end of period							$	688

The following table presents activities in accrued liabilities and related expenses for the restructuring as of or for the three and nine months ended September 30, 2017:



	Expense
($ in thousands)	Continuing Operations		Discontinued Operations		Total		Accrued Liabilities
As of or For the Three Months Ended September 30, 2017
Balance at beginning of period							$	687
Accrual:
Severance and other employee related costs	$	—	$	279	$	279	279
Total	$	—	$	279	$	279	279
Payments:
Severance and other employee related costs							(681		)
Balance at end of period							$	285
As of or For the Nine Months Ended September 30, 2017
Balance at beginning of period							$	—
Accrual:
Severance and other employee related costs	$	5,369	$	2,899	$	8,268	8,268
Other restructuring expense	—		895		895		895
Total	$	5,369	$	3,794	$	9,163	9,163
Payments:
Severance and other employee related costs							(7,983		)
Other restructuring expense							(895		)
Total							(8,878		)
Balance at end of period							$	285