XML 113 R31.htm IDEA: XBRL DOCUMENT v3.19.3

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Assets Measured on a Recurring Basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated:

						Fair Value Measurement Level
($ in thousands)		Carrying Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
September 30, 2019
Assets
Securities available-for-sale:
SBA loan pools securities		$	—			$	—			$	—			$	—
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities		40,374				—				40,374				—
Non-agency residential mortgage-backed securities		277				—				277				—
Collateralized loan obligations		735,011				—				735,011				—
Loans held-for-sale, carried at fair value		23,936				—				3,431				20,505
Derivative assets:
Interest rate swaps and caps (1)		4,773				—				4,773				—
Foreign exchange contracts (1)		36				—				36				—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)		5,198				—				5,198				—
Interest rate swaps and caps - mortgage-backed securities(3)		325				—				325				—
Foreign exchange contracts (2)		30				—				30				—
December 31, 2018
Assets
Securities available-for-sale:
SBA loan pools securities		$	910			$	—			$	910			$	—
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities		437,442				—				437,442				—
Non-agency residential mortgage-backed securities		427				—				427				—
Non-agency commercial mortgage-backed securities		132,199				—				132,199				—
Collateralized loan obligations		1,421,522				—				1,421,522				—
Loans held-for-sale, carried at fair value (4)		27,180				—				2,140				25,040
Derivative assets:
Interest rate swaps and caps (1)		1,534				—				1,534				—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)		1,600				—				1,600				—

(1) Included in Other assets in the Consolidated Statements of Financial Condition.

(2) Included in Accrued expenses and Other liabilities in the Consolidated Statements of Financial Condition.

(3) Included in Securities available-for-sale in the Consolidated Statements of Financial Condition.

(4) Includes loans held-for-sale carried at fair value of $19.5 million ($2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations, which are included in Assets of Discontinued Operations in the Consolidated Statements of Financial Condition.

Fair Value Liabilities Measured on a Recurring Basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated:

						Fair Value Measurement Level
($ in thousands)		Carrying Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
September 30, 2019
Assets
Securities available-for-sale:
SBA loan pools securities		$	—			$	—			$	—			$	—
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities		40,374				—				40,374				—
Non-agency residential mortgage-backed securities		277				—				277				—
Collateralized loan obligations		735,011				—				735,011				—
Loans held-for-sale, carried at fair value		23,936				—				3,431				20,505
Derivative assets:
Interest rate swaps and caps (1)		4,773				—				4,773				—
Foreign exchange contracts (1)		36				—				36				—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)		5,198				—				5,198				—
Interest rate swaps and caps - mortgage-backed securities(3)		325				—				325				—
Foreign exchange contracts (2)		30				—				30				—
December 31, 2018
Assets
Securities available-for-sale:
SBA loan pools securities		$	910			$	—			$	910			$	—
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities		437,442				—				437,442				—
Non-agency residential mortgage-backed securities		427				—				427				—
Non-agency commercial mortgage-backed securities		132,199				—				132,199				—
Collateralized loan obligations		1,421,522				—				1,421,522				—
Loans held-for-sale, carried at fair value (4)		27,180				—				2,140				25,040
Derivative assets:
Interest rate swaps and caps (1)		1,534				—				1,534				—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)		1,600				—				1,600				—

(1) Included in Other assets in the Consolidated Statements of Financial Condition.

(2) Included in Accrued expenses and Other liabilities in the Consolidated Statements of Financial Condition.

(3) Included in Securities available-for-sale in the Consolidated Statements of Financial Condition.

(4) Includes loans held-for-sale carried at fair value of $19.5 million ($2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations, which are included in Assets of Discontinued Operations in the Consolidated Statements of Financial Condition.

Reconciliation of Assets Measured at Fair Value on Recurring Basis

The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), on a consolidated operations basis, for the periods indicated:

		Three Months Ended September 30,								Nine Months Ended September 30,
($ in thousands)		2019				2018				2019				2018
Loans repurchased from GNMA Loan Pools (1)
Balance at beginning of period		$	21,075			$	33,234			$	25,040			$	98,940
Total gains (losses) (realized/unrealized):
Included in earnings—fair value adjustment		2				(22		)		(1		)		(276		)
Additions		406				711				406				28,096
Sales, settlements, and other		(978		)		(8,167		)		(4,940		)		(101,004		)
Balance at end of period		$	20,505			$	25,756			$	20,505			$	25,756

(1)

Includes loans repurchased from GNMA Loan Pools of discontinued operations, which is included in Assets of Discontinued Operations in the Consolidated Statements of Financial Condition, of zero and $20.9 million, respectively, for the three months ended September 30, 2019 and 2018 and $17.3 million and $32.3 million for the nine months ended September 30, 2019 and 2018 in balance at beginning of period, and zero and $17.7 million, respectively, for both the three and nine months ended September 30, 2019 and 2018 in balance at end of period.

Fair value option of certain assets

The following table presents the fair value and aggregate principal balance of certain assets, on a consolidated operations basis, under the fair value option:

		September 30, 2019												December 31, 2018
($ in thousands)		Fair Value				Unpaid Principal Balance				Difference				Fair Value				Unpaid Principal Balance				Difference
Loans held-for-sale, carried at fair value in continuing operations:
Total loans		$	23,936			$	24,746			$	(810	)		$	7,690			$	7,906			$	(216	)
Non-accrual loans (1)		8,203				8,436				(233		)		2,427				2,538				(111		)
Loans held-for-sale, carried at fair value in discontinued operations:
Total loans		$	—			$	—			$	—			$	19,490			$	20,027			$	(537	)
Non-accrual loans (2)		—				—				—				8,430				8,496				(66		)

(1) Includes loans guaranteed by the U.S. government of $7.2 million and $1.6 million, respectively, at September 30, 2019 and December 31, 2018.

(2)

Includes loans guaranteed by the U.S. government of zero and $7.6 million, respectively, at September 30, 2019 and December 31, 2018.

The following table presents changes in fair value related to initial measurement and subsequent changes in fair value included in earnings for these assets measured at fair

value for the periods indicated:

		Three Months Ended September 30,								Nine Months Ended September 30,
($ in thousands)		2019				2018				2019				2018
Net gains from fair value changes:
Net gain on sale of loans (continuing operations)		$	17			$	11			$	77			$	198
Net revenue on mortgage banking activities (discontinued operations)		—				30				—				127

Schedule of Assets and Liabilities Measured on Non-recurring Basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a non-recurring basis as of the dates indicated:

						Fair Value Measurement Level
($ in thousands)		Carrying Value				Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
September 30, 2019
Assets
Impaired loans:
Commercial and industrial		$	15,690			—			—			$	15,690
SBA		1,518				—			—			1,518
December 31, 2018
Assets
Impaired loans:
SBA		$	226			—			—			$	226

Schedule of Gains and (Losses) Recognized on Assets Measured at Fair Value on Non-recurring Basis

The following table presents the gain (losses) recognized on assets measured at fair value on a non-recurring basis for the periods indicated:

		Three Months Ended September 30,								Nine Months Ended September 30,
($ in thousands)		2019				2018				2019				2018
Impaired loans:
Single family residential mortgage		$	—			$	—			$	(490	)		$	(115	)
Commercial and industrial		—				(219		)		—				(511		)
SBA		—				1				(46		)		(379		)
Other consumer		—				—				(88		)		(141		)

Carrying Amounts and Estimated Fair Values of Financial Instruments

nts

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities, on a consolidated operations basis, as of the dates indicated:

		Carrying Amount				Fair Value Measurement Level
($ in thousands)						Level 1				Level 2				Level 3				Total
September 30, 2019
Financial assets
Cash and cash equivalents		$	526,874			$	526,874			$	—			$	—			$	526,874
Securities available-for-sale		775,662				—				775,662				—				775,662
Federal Home Loan Bank and other bank stock		71,679				—				71,679				—				71,679
Loans held-for-sale, carried at fair value		23,936				—				3,431				20,505				23,936
Loans receivable, net of ALLL		6,320,332				—				—				6,280,331				6,280,331
Accrued interest receivable		27,598				27,598				—				—				27,598
Derivative assets		4,809				—				4,809				—				4,809
Financial liabilities
Deposits		5,770,058				—				—				5,700,325				5,700,325
Advances from Federal Home Loan Bank		1,650,000				—				1,681,331				—				1,681,331
Long term debt		173,339				—				182,457				—				182,457
Derivative liabilities		5,553				—				5,553				—				5,553
Accrued interest payable		9,112				9,112				—				—				9,112
December 31, 2018
Financial assets
Cash and cash equivalents		$	391,592			$	391,592			$	—			$	—			$	391,592
Securities available-for-sale		1,992,500				—				1,992,500				—				1,992,500
Federal Home Loan Bank and other bank stock		68,094				—				68,094				—				68,094
Loans held-for-sale (1)		27,606				—				2,566				25,040				27,606
Loans receivable, net of allowance		7,638,681				—				—				7,513,910				7,513,910
Accrued interest receivable		38,807				38,807				—				—				38,807
Derivative assets		1,534				—				1,534				—				1,534
Financial liabilities
Deposits		7,916,644				—				—				7,689,324				7,689,324
Advances from Federal Home Loan Bank		1,520,000				—				1,517,761				—				1,517,761
Long-term debt		173,174				—				174,059				—				174,059
Derivative liabilities		1,600				—				1,600				—				1,600
Accrued interest payable		13,253				13,253				—				—				13,253

(1)

Includes loans held-for-sale carried at fair value of $19.5 million ($2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations.

X

- Definition

Fair Value, Assets Measured on Nonrecurring Basis, Schedule of Gain (Losses) [Table Text Block]

+ References

No definition available.

+ Details

Name:	banc_FairValueAssetsMeasuredonNonrecurringBasisScheduleofGainLossesTableTextBlock
Namespace Prefix:	banc_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=118260190&loc=d3e13467-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of information about asset and liability measured at fair value under fair value option.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14210-108612

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14217-108612

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

+ Details

Name:	us-gaap_FairValueOptionQuantitativeDisclosuresTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration