XML 109 R42.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Assets Measured on a Recurring Basis

The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019:

					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)
December 31, 2019
Assets
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities		$	36,456		$	—		$	36,456		$	—
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations		91,299			—			91,299			—
Municipal securities		52,689			—			52,689			—
Non-agency residential mortgage-backed securities		196			—			196			—
Collateralized loan obligations		718,361			—			718,361			—
Corporate debt securities		13,579			—			13,579			—
Loans held-for-sale, carried at fair value		22,642			—			3,409			19,233
Mortgage servicing rights (1)		1,157			—			—			1,157
Derivative assets:
Interest rate swaps and caps (1)		3,445			—			3,445			—
Foreign exchange contracts (1)		138			—			138			—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)		3,717			—			3,717			—
Foreign exchange contracts(2)		136			—			136			—

(1) Included in Other Assets on the Consolidated Statements of Financial Condition

(2) Included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition

The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018:

					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)
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 (1)		27,180			—			2,140			25,040
Mortgage servicing rights (2)		1,770			—			—			1,770
Derivative assets - Interest rate swaps and caps (2)		1,534			—			1,534			—
Liabilities
Derivative liabilities - Interest rate swaps and caps (3)		1,600			—			1,600			—

(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, which are included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition.

(2) Included in Other Assets in the Consolidated Statements of Financial Condition.

(3)

Included in Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition.

Fair Value Liabilities Measured on a Recurring Basis

The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019:

					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)
December 31, 2019
Assets
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities		$	36,456		$	—		$	36,456		$	—
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations		91,299			—			91,299			—
Municipal securities		52,689			—			52,689			—
Non-agency residential mortgage-backed securities		196			—			196			—
Collateralized loan obligations		718,361			—			718,361			—
Corporate debt securities		13,579			—			13,579			—
Loans held-for-sale, carried at fair value		22,642			—			3,409			19,233
Mortgage servicing rights (1)		1,157			—			—			1,157
Derivative assets:
Interest rate swaps and caps (1)		3,445			—			3,445			—
Foreign exchange contracts (1)		138			—			138			—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)		3,717			—			3,717			—
Foreign exchange contracts(2)		136			—			136			—

(1) Included in Other Assets on the Consolidated Statements of Financial Condition

(2) Included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition

The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018:

					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)
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 (1)		27,180			—			2,140			25,040
Mortgage servicing rights (2)		1,770			—			—			1,770
Derivative assets - Interest rate swaps and caps (2)		1,534			—			1,534			—
Liabilities
Derivative liabilities - Interest rate swaps and caps (3)		1,600			—			1,600			—

(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, which are included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition.

(2) Included in Other Assets in the Consolidated Statements of Financial Condition.

(3)

Included in Accrued Expenses and Other Liabilities 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:

		Year Ended December 31,
($ in thousands)		2019				2018				2017
Mortgage servicing rights
Balance at beginning of period (1)		$	1,770			$	31,852			$	76,121
Total gains or losses (realized/unrealized):
Included in earnings—fair value adjustment (4)		(264		)		(1,155		)		(10,240		)
Additions		—				—				12,127
Sales, paydowns, and other (2)		(349		)		(28,927		)		(46,156		)
Balance at end of period		$	1,157			$	1,770			$	31,852
Loans repurchased or eligible to be repurchased from Ginnie Mae Loan Pools (3)
Balance at beginning of period		$	25,040			$	98,940			$	58,260
Total gains or losses (realized/unrealized):
Included in earnings—fair value adjustment (5)		(16		)		(1,378		)		(781		)
Additions		406				23,678				117,215
Sales, settlements, and other (6)		(6,197		)		(96,200		)		(75,754		)
Balance at end of period		$	19,233			$	25,040			$	98,940

(1) Includes MSRs of discontinued operations, which is included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition, of $0, $0, and $37.7 million for the years ended December 31, 2019, 2018 and 2017 in balance at beginning of period.

(2) Includes $37.8 million of MSRs sold as a part of discontinued operations for the year ended December 31, 2017.

(3) Includes loans repurchased from GNMA loan pools of discontinued operations, which is included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition, of $17.3 million, $32.3 million and $58.3 million in balance at beginning of period, and $0, $17.3 million and $32.3 million in balance at end of period for the years ended December 31, 2019, 2018 and 2017.

(4) Included in Loan Servicing Income in the Consolidated Statements of Operations.

(5) Included in Net Gain on Sale of Loans in the Consolidated Statements of Operations.

(6)

Included in sales, settlements and other are $66.0 million of GNMA loans subject to repurchase option that were derecognized when the associated mortgage servicing rights were sold during the year ended December 31, 2018.

Quantitative Information About Level 3 Fair Value Measurements

The following table presents, as of the dates indicated, quantitative information about Level 3 fair value measurements on a recurring basis, other than loans that become severely delinquent and are repurchased out of GNMA loan pools that were valued based on an estimate of the expected loss we will incur on these loans at December 31, 2019 and 2018:

($ in thousands)		Fair Value				Valuation Technique(s)		Unobservable Input(s)		Range (Weighted-Average)
December 31, 2019
Mortgage servicing rights		$	2,323			Discounted cash flow		Discount rate		8.75% to 13.00% (11.55%)
								Prepayment rate		8.00% to 66.34% (15.22%)
December 31, 2018
Mortgage servicing rights		$	3,362			Discounted cash flow		Discount rate		9.50% to 13.00% (11.27%)
								Prepayment rate		8.00% to 66.34% (12.67%)

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 as of the dates indicated:

		December 31,
		2019												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		$	22,642			$	23,455			$	(813	)		$	7,690			$	7,906			$	(216	)
Non-accrual loans (1)		8,125				8,370				(245		)		2,427				2,538				(111		)
Loans past due 90 days or more and still accruing		—				—				—				—				—				—
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		)
Loans past due 90 days or more and still accruing		—				—				—				—				—				—

(1) Includes loans guaranteed by the U.S. government of $6.7 million and $1.6 million at December 31, 2019 and 2018.

(2)

Includes loans guaranteed by the U.S. government of $0 and $7.6 million, at December 31, 2019 and 2018.

s. The following table presents changes in fair value related to initial measurement and subsequent changes in fair value included in earnings for these assets and liabilities measured at fair value for the periods indicated:

		Year Ended December 31,
($ in thousands)		2019				2018				2017
Net gains (losses) from fair value changes
Net gain (loss) on sale of loans (continuing operations)		$	106			$	204			$	(170	)
Net revenue on mortgage banking activities (discontinued operations)		—				159				(288		)

Fair Value Assets and Liabilities Measured on a Non-Recurring Basis

The following table presents our 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)
December 31, 2019
Assets
Impaired loans:
Single family residential mortgage		$	3,678			$	—			$	—			$	3,678
Commercial and industrial		15,409				—				—				15,409
SBA		$	1,711			—				—				$	1,711
December 31, 2018
Assets
Impaired loans:
SBA		$	226			—				—				$	226

Gain and Losses Recognized on Assets Measured at Fair Value

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

		Year Ended December 31,
($ in thousands)		2019				2018				2017
Impaired loans:
Single family residential mortgage		$	(490	)		$	(115	)		$	(164	)
Commercial real estate		—				(1,752		)		—
SBA		(46		)		(1,048		)		(200		)
Other consumer		(88		)		(141		)		(29		)
Other real estate owned:
Single family residential		(104		)		229				(284		)

Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities as of the dates indicated:

		Carrying Amount				Fair Value Measurement Level
($ in thousands)						Level 1				Level 2				Level 3				Total
December 31, 2019
Financial assets
Cash and cash equivalents		$	373,472			$	373,472			$	—			$	—			$	373,472
Securities available-for-sale		912,580				—				912,580				—				912,580
Federal Home Loan Bank and other bank stock		59,420				—				59,420				—				59,420
Loans held-for-sale		22,642				—				3,409				19,233				22,642
Loans receivable, net of allowance		5,894,236				—				—				5,894,732				5,894,732
Accrued interest receivable		24,523				24,523				—				—				24,523
Derivative assets		3,583				—				3,583				—				3,583
Financial liabilities
Deposits		5,427,167				—				—				5,430,536				5,430,536
Advances from Federal Home Loan Bank		1,195,000				—				1,222,709				—				1,222,709
Long-term debt		173,421				—				180,213				—				180,213
Derivative liabilities		3,853				—				3,853				—				3,853
Accrued interest payable		4,687				4,687				—				—				4,687
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 input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ 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 (bbb)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
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