COVERED ASSETS AND FDIC INDEMNIFICATION ASSET (Tables)

12 Months Ended

Dec. 31, 2014



	Year Ended December 31,
	2014				2013
	(In thousands)
CRE	$	705,665			$	1,103,530
Construction and land	46,054				163,833
Total CRE	751,719				1,267,363
C&I	252,986				426,621
Residential single-family	240,650				290,095
Residential multifamily	296,599				403,508
Total residential	537,249				693,603
Other consumer	62,986				73,973
Total covered loans	1,604,940			⁽¹⁾	2,461,560			⁽²⁾
Covered discount	(127,246		)		(265,917		)
Net valuation of loans	1,477,694				2,195,643
Allowance for loan losses on covered loans	(3,505		)		(7,745		)
Total covered loans, net	$	1,474,189			$	2,187,898
Collectively evaluated for impairment	$	253,312		⁽¹⁾	$	320,185		⁽²⁾
Acquired with deteriorated credit quality	1,224,382				1,875,458
Total	$	1,477,694			$	2,195,643


(1)	Includes $253.3 million of covered advances comprised of $154.8 million, $59.4 million, $27.3 million and $11.8 million of C&I, CRE, consumer and residential loans, respectively.


(2)	Includes $320.2 million of covered advances comprised of $230.6 million, $46.7 million, $30.9 million and $12.0 million of C&I, CRE, consumer and residential loans, respectively.



	December 31,
	2014		2013
	(In thousands)
Covered nonaccrual loans^{(1) (2) (3)}	$	62,665	$	126,895
Other real estate owned covered, net	4,499		21,373
Total covered nonperforming assets	$	67,164	$	148,268


(1)	Covered nonaccrual loans include loans that meet the criteria for nonaccrual but have a yield accreted through interest income under ASC 310-30. All losses on covered loans are 80% reimbursed by the FDIC.


(2)	Net of discount.


(3)	Includes $10.1 million and $17.7 million of covered advances as of December 31, 2014 and December 31, 2013, respectively; and $52.6 million and $109.2 million of PCI loans as of December 31, 2014 and December 31, 2013, respectively.



	Year Ended December 31,
	2014			2013			2012
	(In thousands)
Beginning balance	$	461,545		$	556,986		$	785,165
Additions	—			—			—
Accretion	(214,209		)	(347,010		)	(382,132		)
Changes in expected cash flows	59,188			251,569			153,953
Ending balance	$	306,524		$	461,545		$	556,986


(1)	Reductions relate to charge-offs, partial prepayments, loan payoffs and loan sales which result in a corresponding reduction of the indemnification asset.


(2)	This represents the change in the calculated estimate the Company will be required to pay the FDIC at the end of the FDIC shared-loss agreements, due to lower thresholds of losses.



	Year Ended December 31,
	2014			2013
	(In thousands)
Beginning balance	$	30,261		$	73,091
Net (reduction) addition due to recovery or eligible expense/loss	(30,601		)	12,996
Payments to (received from) the FDIC	1,343			(55,826		)
Ending balance	$	1,003		$	30,261



	Year Ended December 31,
	2014										2013									2012
	Covered Advances			PCI Covered Loans			Total				Covered Advances			PCI Covered Loans		Total				Covered Advances			PCI Covered Loans		Total
	(In thousands)
Beginning balance	$	5,476		$	2,269		$	7,745			$	5,153		$	—	$	5,153			$	6,647		$	—	$	6,647
Provision for (reversal of) loan losses	6,878			(1,845		)	5,033				1,759			2,269		4,028				5,016			—		5,016
Charge-offs	(10,836		)	—			(10,836		)		(1,436		)	—		(1,436		)		(6,510		)	—		(6,510		)
Recoveries	1,563			—			1,563				—			—		—				—			—		—
Ending balance	$	3,081		$	424		$	3,505			$	5,476		$	2,269	$	7,745			$	5,153		$	—	$	5,153
Ending balance allocated to:
Collectively evaluated for impairment	$	3,081		$	—		$	3,081		⁽¹⁾	$	5,476		$	—	$	5,476		⁽²⁾	$	5,153		$	—	$	5,153		⁽³⁾
Acquired with deteriorated credit quality	—			424			424				—			2,269		2,269				—			—		—
Ending balance	$	3,081		$	424		$	3,505			$	5,476		$	2,269	$	7,745			$	5,153		$	—	$	5,153


(1)	Allowance for loan losses of $2.0 million, $676 thousand, $223 thousand and $166 thousand are allocated to C&I, CRE, consumer and residential loans, respectively.


(2)	Allowance for loan losses of $3.2 million, $1.8 million, $341 thousand and $176 thousand are allocated to C&I, CRE, consumer and residential loans, respectively.


(3)	Allowance for loan losses of $2.4 million, $2.5 million and $194 thousand and $87 thousand are allocated to C&I, CRE, consumer and residential loans, respectively.