RESTRUCTURING

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 and fourth quarters of 2018, with each of these actions intended to align the Company’s cost structure with its focused commercial banking platform. The plan was fully completed during the fourth quarter of 2018. The Company incurred severance-related costs in 2018 aggregating $4.4 million, pre-tax, related to the reduction in force.

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.

The Company had outstanding unpaid accrued liabilities of $117 thousand and $202 thousand, respectively, at December 31, 2018 and 2017. The following table presents activities in accrued liabilities and related expenses for the restructuring as of or for the years ended December 31, 2018 and 2017, respectively:



	Expense
($ in thousands)	Continuing Operations		Discontinued Operations		Total		Accrued Liabilities
As of or For the Year Ended December 31, 2018
Balance at beginning of period							$	202
Accrual:
Severance and other employee related costs	$	4,431	$	—	$	4,431	4,431
Total	$	4,431	$	—	$	4,431	4,431
Payments:
Severance and other employee related costs							(4,516		)
Other restructuring expense							—
Total							$	(4,516	)
Balance at end of period							$	117
As of or For the Year Ended December 31, 2017
Balance at beginning of period							$	—
Accrual:
Severance and other employee related costs	$	5,326	$	2,899	$	8,225	8,225
Other restructuring expense	—		895		895		895
Total	$	5,326	$	3,794	$	9,120	9,120
Payments:
Severance and other employee related costs							(8,023		)
Other restructuring expense							(895		)
Total							$	(8,918	)
Balance at end of period							$	202