NON COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2011

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Summary of loans receivable, excluding covered loans

	December 31,
	2011			2010
	(In thousands)
Residential:
Single-family	$	1,796,635		$	1,119,024
Multifamily		933,168			974,745
Total residential		2,729,803			2,093,769
Commercial Real Estate ("CRE"):
Income producing		3,487,866			3,392,984
Construction		171,410			278,047
Land		173,089			235,707
Total CRE		3,832,365			3,906,738
Commercial and Industrial ("C&I"):
Commercial business		2,655,917			1,674,698
Trade finance		486,555			308,657
Total C&I		3,142,472			1,983,355
Consumer:
Student loans		306,325			490,314
Other consumer		277,461			243,212
Total consumer		583,786			733,526
Total gross loans receivable, excluding covered loans		10,288,426			8,717,388
Unearned fees, premiums, and discounts, net		(16,762	)		(56,781	)
Allowance for loan losses, excluding covered loans		(209,876	)		(230,408	)
Loans receivable, excluding covered loans, net	$	10,061,788		$	8,430,199

Summary of non-covered loans by credit quality

	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
December 31, 2011
Residential:
Single-family	$	1,768,149	$	11,239	$	17,247	$	—	$	1,796,635
Multifamily		810,458		25,531		97,179		—		933,168
CRE:
Income producing		3,211,386		63,066		213,414		—		3,487,866
Construction		109,184		—		62,226		—		171,410
Land		125,534		7,954		39,601		—		173,089
C&I:
Commercial business		2,492,904		62,409		100,357		247		2,655,917
Trade finance		467,822		7,161		11,572		—		486,555
Consumer:
Student loans		305,880		188		257		—		306,325
Other consumer		273,692		—		3,769		—		277,461
Total	$	9,565,009	$	177,548	$	545,622	$	247	$	10,288,426

	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
December 31, 2010
Residential:
Single-family	$	1,076,281	$	12,376	$	30,367	$	—	$	1,119,024
Multifamily		789,631		42,887		142,227		—		974,745
CRE:
Income producing		3,054,197		80,714		258,073		—		3,392,984
Construction		202,385		—		75,662		—		278,047
Land		146,499		4,656		84,552		—		235,707
C&I:
Commercial business		1,553,218		34,449		81,185		5,846		1,674,698
Trade finance		296,430		4,069		8,158		—		308,657
Consumer:
Student loans		490,314		—		—		—		490,314
Other consumer		238,964		1,486		2,762		—		243,212
Total	$	7,847,919	$	180,637	$	682,986	$	5,846	$	8,717,388

Age analysis of nonaccrual and past due non-covered loans and loans held for sale

	Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Nonaccrual Loans Less Than 90 Days Past Due		Nonaccrual Loans 90 or More Days Past Due		Total Nonaccrual Past Due Loans		Current Loans		Total
	(In thousands)
December 31, 2011
Residential:
Single-family	$	6,991	$	1,198	$	8,189	$	—	$	3,569	$	3,569	$	1,784,877	$	1,796,635
Multifamily		6,366		745		7,111		6,889		11,306		18,195		907,862		933,168
CRE:
Income producing		18,179		1,549		19,728		6,885		25,690		32,575		3,435,563		3,487,866
Construction		—		—		—		26,482		14,688		41,170		130,240		171,410
Land		—		573		573		1,136		9,589		10,725		161,791		173,089
C&I:
Commercial business		342		2,957		3,299		4,394		6,843		11,237		2,641,381		2,655,917
Trade finance		—		—		—		—		—		—		486,555		486,555
Consumer:
Student loans		109		188		297		—		257		257		305,771		306,325
Other consumer		1,130		—		1,130		—		2,249		2,249		274,082		277,461
Loans held for sale		—		—		—		—		25,655		25,655		252,948		278,603
Total	$	33,117	$	7,210	$	40,327	$	45,786	$	99,846	$	145,632	$	10,381,070		10,567,029
Unearned fees, premiums and discounts, net																(16,762	)
Total recorded investment in non-covered loans and loans held for sale															$	10,550,267

	Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Nonaccrual Loans Less Than 90 Days Past Due		Nonaccrual Loans 90 or More Days Past Due		Total Nonaccrual Past Due Loans		Current Loans		Total
	(In thousands)
December 31, 2010
Residential:
Single-family	$	5,449	$	5,432	$	10,881	$	355	$	7,058	$	7,413	$	1,100,730	$	1,119,024
Multifamily		18,894		4,368		23,262		7,694		9,687		17,381		934,102		974,745
CRE:
Income producing		27,002		6,034		33,036		7,962		38,454		46,416		3,313,532		3,392,984
Construction		—		1,486		1,486		25,688		9,778		35,466		241,095		278,047
Land		479		—		479		20,761		8,138		28,899		206,329		235,707
C&I:
Commercial business		3,216		1,086		4,302		14,437		8,235		22,672		1,647,724		1,674,698
Trade finance		—		—		—		—		—		—		308,657		308,657
Consumer:
Student loans		—		—		—		—		—		—		490,314		490,314
Other consumer		781		1,485		2,266		—		620		620		240,326		243,212
Loans held for sale		—		—		—		—		14,062		14,062		205,993		220,055
Total	$	55,821	$	19,891	$	75,712	$	76,897	$	96,032	$	172,929	$	8,688,802		8,937,443
Unearned fees, premiums and discounts, net																(56,781	)
Total recorded investment in non-covered loans and loans held for sale															$	8,880,662

Summary of interest income foregone on nonaccrual loans

	For the Year Ended December 31,
	2011			2010			2009
	(In thousands)
Interest income that would have been recognized had nonaccrual loans performed in accordance with their original terms	$	9,384		$	12,689		$	13,743
Less: Interest income recognized on nonaccrual loans on a cash basis		(3,519	)		(7,880	)		(10,231	)
Interest income foregone on nonaccrual loans	$	5,865		$	4,809		$	3,512

Loans modified as troubled debt restructurings

	Loans Modified as TDRs During the Year Ended December 31, 2011
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment(1)		Financial Impact(2)
	(Dollars in thousands)
Residential:
Single-family		13	$	3,102	$	2,972	$	665
Multifamily		15	$	6,442	$	4,903	$	1,279
CRE:
Income producing		11	$	32,404	$	29,933	$	4,983
Construction		3	$	3,740	$	4,221	$	220
Land		11	$	35,554	$	34,381	$	4,279
C&I:
Commercial business		24	$	18,247	$	16,706	$	4,443
Trade finance		1	$	4,127	$	4,127	$	—
Consumer:
Student loans		—	$	—	$	—	$	—
Other consumer		—	$	—	$	—	$	—

⁽¹⁾

Includes subsequent payments after modification and reflects the balance as of December 31, 2011.

⁽²⁾

The financial impact includes chargeoffs at modification date and specific reserves.

Troubled debt restructurings that subsequently defaulted

	Loans Modified as TDRs that Subsequently Defaulted During the Year Ended December 31, 2011
	Number of Contracts		Recorded Investment
	(Dollars in thousands)
Residential:
Single-family		—	$	—
Multifamily		—	$	—
CRE:
Income producing		—	$	—
Construction		1	$	890
Land		1	$	11,695
C&I:
Commercial business		2	$	307
Trade finance		—	$	—
Consumer:
Student loans		—	$	—
Other consumer		—	$	—

Summary of impaired non-covered loans, including interest income recognized

	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized(1)
	(In thousands)
As of and for the year ended December 31, 2011
Residential:
Single-family	$	10,248		6,578		2,535		9,113		1,131		9,408		65
Multifamily		37,450		28,272		3,520		31,792		1,124		35,855		473
CRE:
Income producing		69,664		55,701		7,941		63,642		1,187		68,087		1,030
Construction		75,714		45,413		1,067		46,480		815		64,398		1,099
Land		40,615		25,806		8,692		34,498		3,949		36,002		341
C&I:
Commercial business		38,857		20,772		6,650		27,422		4,835		32,033		484
Trade finance		4,127		4,127		—		4,127		—		4,127		—
Consumer:
Student loans		257		257		—		257		—		257		—
Other consumer		2,249		2,249		—		2,249		—		2,251		27
Total	$	279,181	$	189,175	$	30,405	$	219,580	$	13,041	$	252,418	$	3,519

	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized(1)
	(In thousands)
As of and for the year ended December 31, 2010(2)
Residential:
Single-family	$	19,769	$	18,521	$	355	$	18,876	$	219	$	21,212	$	209
Multifamily		34,708		32,012		631		32,643		90		39,350		540
CRE:
Income producing		95,899		82,345		6,354		88,699		1,557		100,004		2,174
Construction		88,586		81,789		2,436		84,225		1,366		95,324		1,728
Land		39,937		22,082		6,920		29,002		4,324		32,820		1,326
C&I:
Commercial business		37,668		23,044		3,897		26,941		2,468		27,378		1,199
Trade finance		—				—		—		—		—		—
Consumer:				—
Student loans		—				—		—		—		—		—
Other consumer		1,261		620		—		620		—		1,072		28
Total	$	317,828	$	260,413	$	20,593	$	281,006	$	10,024	$	317,160	$	7,204

⁽¹⁾

Excludes interest from performing TDRs.

⁽²⁾

The table has been corrected to include performing TDRs in the prior period presentation. Previously, the Company did not include performing TDRs as impaired loans. The amount of performing TDR's as of December 31, 2010 totaled approximately $122 million.

Detail of activity in allowance for loan losses, for both covered and non-covered loans, by portfolio segment

	Residential			CRE			C&I			Consumer			Covered Loans Subject to Allowance for Loan Losses(1)		Unallocated			Total
	(In thousands)
Year ended December 31, 2011
Beginning balance	$	49,491		$	117,752		$	59,737		$	3,428		$	4,225	$	—		$	234,633
Provision for loan losses		15,416			22,817			50,848			2,455			2,422		1,048			95,006
Allowance for unfunded loan commitments and letters of credit		—			—			—			—			—		(1,048	)		(1,048	)
Charge-offs		(13,323	)		(78,803	)		(30,606	)		(1,959	)		—		—			(124,691	)
Recoveries		596			4,691			7,041			295			—		—			12,623
Net charge-offs		(12,727	)		(74,112	)		(23,565	)		(1,664	)		—		—			(112,068	)
Ending balance	$	52,180		$	66,457		$	87,020		$	4,219		$	6,647	$	—		$	216,523
Ending balance allocated to:
Loans individually evaluated for impairment	$	2,255		$	5,951		$	4,835		$	—		$	—	$	—		$	13,041
Loans collectively evaluated for impairment		49,925			60,506			82,185			4,219			6,647		—			203,482
Loans acquired with deteriorated credit quality(2)		—			—			—			—			—		—			—
Ending balance	$	52,180		$	66,457		$	87,020		$	4,219		$	6,647	$	—		$	216,523

	Residential			CRE			C&I			Consumer			Covered Loans Subject to Allowance for Loan Losses(1)		Unallocated			Total
	(In thousands)
Year ended December 31, 2010
Beginning balance	$	38,025		$	147,591		$	50,487		$	2,730		$	—	$	—		$	238,833
Provision for loan losses		59,525			97,548			34,613			2,415			4,225		1,833			200,159
Allowance for unfunded loan commitments and letters of credit		—			—			—			—			—		(1,833	)		(1,833	)
Charge-offs		(49,685	)		(137,460	)		(35,479	)		(2,579	)		—		—			(225,203	)
Recoveries		1,626			10,073			10,116			862			—		—			22,677
Net charge-offs		(48,059	)		(127,387	)		(25,363	)		(1,717	)		—		—			(202,526	)
Ending balance	$	49,491		$	117,752		$	59,737		$	3,428		$	4,225	$	—		$	234,633
Ending balance allocated to:
Loans individually evaluated for impairment	$	309		$	7,247		$	2,468		$	—		$	—	$	—		$	10,024
Loans collectively evaluated for impairment		49,182			110,505			57,269			3,428			4,225		—			224,609
Loans acquired with deteriorated credit quality(2)		—			—			—			—			—		—			—
Ending balance	$	49,491		$	117,752		$	59,737		$	3,428		$	4,225	$	—		$	234,633

⁽¹⁾

This allowance is related to drawdowns on commitments that were in existence as of the acquisition dates of WFIB and UCB and, therefore, are covered under the shared-loss agreements with the FDIC. Allowance on these subsequent drawdowns is accounted for as part of the allowance for loan losses.

⁽²⁾

The Company has elected to account for all covered loans acquired in the FDIC-assisted acquisitions under ASC 310-30.

Recorded investment in total loans receivable by portfolio segment, disaggregated by impairment methodology

	Residential		CRE		C&I		Consumer		Covered Loans Subject to Allowance for Loan Losses		Total
	(In thousands)
December 31, 2011
Loans individually evaluated for impairment	$	43,395	$	143,631	$	31,338	$	2,249	$	—	$	220,613
Loans collectively evaluated for impairment		2,686,408		3,688,734		3,111,135		581,536		583,804		10,651,617
Loans acquired with deteriorated credit quality(1)		1,331,615		2,322,062		413,479		67,124		—		4,134,280
Ending balance	$	4,061,418	$	6,154,427	$	3,555,952	$	650,909	$	583,804	$	15,006,510

	Residential		CRE		C&I		Consumer		Covered Loans Subject to Allowance for Loan Losses		Total
	(In thousands)
December 31, 2010
Loans individually evaluated for impairment	$	51,519	$	201,926	$	26,941	$	620	$	—	$	281,006
Loans collectively evaluated for impairment		2,042,250		3,704,812		1,956,415		732,905		561,725		8,998,107
Loans acquired with deteriorated credit quality(1)		1,614,732		3,059,133		634,560		85,623		—		5,394,048
Ending balance	$	3,708,501	$	6,965,871	$	2,617,916	$	819,148	$	561,725	$	14,673,161

⁽¹⁾

The Company has elected to account for all covered loans acquired in the FDIC-assisted acquisitions under ASC 310-30. The total principal balance is presented and excludes the purchase discount and any additional advances subsequent to acquisition date.