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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2014
Fair Value Disclosures [Abstract] |
Assets and Liabilities Measured at Fair Value on Recurring Basis | As of June 30, 2014 and December 31, 2013, assets and liabilities measured at fair value on a recurring basis are as follows:
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  |  |
|  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Observable Inputs with No Active Market with Identical Characteristics |  |  | Significant Unobservable Inputs |  |  | Balance |
|  |  |  |  | (In thousands) |  |  |  |
June 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | — |  |  | $ | 214,635 |  |  | $ | — |  |  | $ | 214,635 |
Collateralized mortgage obligations |  |  | — |  |  |  | 159,625 |  |  |  | — |  |  |  | 159,625 |
U.S. government agency securities |  |  | 77,864 |  |  |  | — |  |  |  | — |  |  |  | 77,864 |
Municipal bonds-tax exempt |  |  | — |  |  |  | 3,719 |  |  |  | 728 |  |  |  | 4,447 |
Municipal bonds-taxable |  |  | — |  |  |  | 16,731 |  |  |  | — |  |  |  | 16,731 |
Corporate bonds |  |  | — |  |  |  | 16,925 |  |  |  | — |  |  |  | 16,925 |
SBA loan pools securities |  |  | — |  |  |  | 12,561 |  |  |  | — |  |  |  | 12,561 |
Other securities |  |  | — |  |  |  | 2,939 |  |  |  | — |  |  |  | 2,939 |
Equity security |  |  | — |  |  |  | 250 |  |  |  | — |  |  |  | 250 |
Total securities available for sale |  | $ | 77,864 |  |  | $ | 427,385 |  |  | $ | 728 |  |  | $ | 505,977 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | — |  |  | $ | 217,059 |  |  | $ | — |  |  | $ | 217,059 |
Collateralized mortgage obligations |  |  | — |  |  |  | 127,693 |  |  |  | — |  |  |  | 127,693 |
U.S. government agency securities |  |  | 83,536 |  |  |  | — |  |  |  | — |  |  |  | 83,536 |
Municipal bonds-tax exempt |  |  | — |  |  |  | 13,189 |  |  |  | 748 |  |  |  | 13,937 |
Municipal bonds-taxable |  |  | — |  |  |  | 32,354 |  |  |  | — |  |  |  | 32,354 |
Corporate bonds |  |  | — |  |  |  | 20,835 |  |  |  | — |  |  |  | 20,835 |
U.S. treasury bills |  |  | 19,997 |  |  |  | — |  |  |  | — |  |  |  | 19,997 |
SBA loan pools securities |  |  | — |  |  |  | 12,629 |  |  |  | — |  |  |  | 12,629 |
Other securities |  |  | — |  |  |  | 2,886 |  |  |  | — |  |  |  | 2,886 |
Total securities available for sale |  | $ | 103,533 |  |  | $ | 426,645 |  |  | $ | 748 |  |  | $ | 530,926 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock warrants |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | 2 |
Reconciliation and Income Statement Classification of Gains and Losses for All Assets and Liabilities | The table below presents a reconciliation and income statement classification of gains and losses for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2014:
|  | Beginning Balance as of January 1, 2014 |  |  | Purchases, Issuances and Settlement |  |  | Realized Gains or Losses in Earnings |  |  | Unrealized Gains or Losses in Other Comprehensive Income |  |  | Ending Balance as of June 30, 2014 |
|  |  |  |  |  |  |  | (In thousands) |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds-tax exempt (1) |  | $ | 748 |  |  | $ | — |  |  | $ | — |  |  | $ | (20 | ) |  | $ | 728 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock warrants (2) |  | $ | 2 |  |  | $ | (2 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |
(1) | Reflects a zero coupon tax credit municipal bond. As the Company was not able to obtain a price from independent external pricing service providers, the discounted cash flow method was used to determine its fair value. The bond carried a par value of $700,000 and an amortized value of $699,000 with a remaining life of 0.74 year at June 30, 2014.
(2) | Reflects warrants for our common stock issued in connection with services Cappello Capital Corp. provided to us as a placement agent in connection with our best efforts public offering and as our financial adviser in connection with our completed rights offering. The warrants were immediately exercisable when issued at an exercise price of $9.60 per share of our common stock and expire on October 14, 2015. See “Note 7 – Stockholders’ Equity” for more details. The carrying value at June 30, 2014 was $400.
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | As of June 30, 2014 and December 31, 2013, assets and liabilities measured at fair value on a non-recurring basis are as follows:
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  |  |
|  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Observable Inputs With No Active Market With Identical Characteristics |  |  | Significant Unobservable Inputs |  |  | Loss During the Six Months Ended June 30, 2014 |
|  |  |  |  | (In thousands) |  |  |  |
June 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans (1) |  | $ | — |  |  | $ | 32,714 |  |  | $ | 3,251 |  |  | $ | 2,301 |
Other real estate owned (2) |  |  | — |  |  |  | 1,714 |  |  |  | — |  |  |  | 17 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  |  |
|  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Observable Inputs With No Active Market With Identical Characteristics |  |  | Significant Unobservable Inputs |  |  | Loss During the Twelve Months Ended December 31, 2013 |
|  |  |  |  | (In thousands) |  |  |  |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans (3) |  | $ | — |  |  | $ | 36,254 |  |  | $ | 1,738 |  |  | $ | 2,431 |
Other real estate owned (4) |  |  | — |  |  |  | 756 |  |  |  | — |  |  |  | 10 |
(1) | Include real estate loans of $33.2 million, commercial and industrial loans of $1.4 million, and consumer loans of $1.4 million.
(2) | Includes properties from the foreclosure of real estate loans of $1.7 million.
(3) | Include real estate loans of $32.2 million, commercial and industrial loans of $2.8 million, and consumer loans of $1.3 million.
(4) | Includes properties from the foreclosure of real estate loans of $756,000.
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments were as follows:
|  | June 30, 2014 |
|  | Carrying |  |  | Fair Value |
|  | Amount |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 123,782 |  |  | $ | 123,782 |  |  | $ | — |  |  | $ | — |
Securities available for sale |  |  | 505,977 |  |  |  | 77,864 |  |  |  | 427,385 |  |  |  | 728 |
Loans receivable, net of allowance for loan losses |  |  | 2,300,810 |  |  |  | — |  |  |  | — |  |  |  | 2,298,104 |
Loans held for sale |  |  | 3,842 |  |  |  | — |  |  |  | 3,842 |  |  |  | — |
Accrued interest receivable |  |  | 6,355 |  |  |  | 6,355 |  |  |  | — |  |  |  | — |
Investment in federal home loan bank stock |  |  | 16,385 |  |  |  | 16,385 |  |  |  | — |  |  |  | — |
Investment in federal reserve bank stock |  |  | 11,514 |  |  |  | 11,514 |  |  |  | — |  |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 910,320 |  |  |  | — |  |  |  | 910,320 |  |  |  |  |
Interest-bearing deposits |  |  | 1,634,529 |  |  |  | — |  |  |  | — |  |  |  | 1,622,879 |
Borrowings |  |  | 97,000 |  |  |  | — |  |  |  | — |  |  |  | 97,000 |
Accrued interest payable |  |  | 3,423 |  |  |  | 3,423 |  |  |  | — |  |  |  | — |
Off-balance sheet items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commitments to extend credit |  |  | 271,225 |  |  |  | — |  |  |  | — |  |  |  | 271,225 |
Standby letters of credit |  |  | 8,310 |  |  |  | — |  |  |  | — |  |  |  | 8,310 |
|  | December 31, 2013 |
|  | Carrying |  |  | Fair Value |
|  | Amount |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 179,357 |  |  | $ | 179,357 |  |  | $ | — |  |  | $ | — |
Securities available for sale |  |  | 530,926 |  |  |  | 103,533 |  |  |  | 426,645 |  |  |  | 748 |
Loans receivable, net of allowance for loan losses |  |  | 2,177,498 |  |  |  | — |  |  |  | — |  |  |  | 2,204,069 |
Loans held for sale |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Accrued interest receivable |  |  | 7,055 |  |  |  | 7,055 |  |  |  | — |  |  |  | — |
Investment in federal home loan bank stock |  |  | 14,060 |  |  |  | 14,060 |  |  |  | — |  |  |  | — |
Investment in federal reserve bank stock |  |  | 11,196 |  |  |  | 11,196 |  |  |  | — |  |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 819,015 |  |  |  | — |  |  |  | 819,015 |  |  |  |  |
Interest-bearing deposits |  |  | 1,693,310 |  |  |  | — |  |  |  | — |  |  |  | 1,693,739 |
Borrowings |  |  | 127,546 |  |  |  | — |  |  |  | — |  |  |  | 127,249 |
Accrued interest payable |  |  | 3,366 |  |  |  | 3,366 |  |  |  | — |  |  |  | — |
Off-balance sheet items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commitments to extend credit |  |  | 246,161 |  |  |  | — |  |  |  | — |  |  |  | 246,161 |
Standby letters of credit |  |  | 8,926 |  |  |  | — |  |  |  | — |  |  |  | 8,926

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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19296-110258 + Details
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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 + Details
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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13476-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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