NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2014

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Schedule of composition of non-covered loans



	December 31, 2014			December 31, 2013
	(In thousands)
CRE:
Income producing	$	5,611,485		$	4,301,030
Construction	313,811			140,186
Land	208,750			143,861
Total CRE	6,134,046			4,585,077
C&I:
Commercial business	7,031,350			4,637,056
Trade finance	806,744			723,137
Total C&I	7,838,094			5,360,193
Residential:
Single-family	3,642,978			3,192,875
Multifamily	1,177,690			992,434
Total residential	4,820,668			4,185,309
Consumer:
Student loans	—			679,220
Other consumer	1,456,643			868,518
Total consumer	1,456,643			1,547,738
Total non-covered loans ⁽¹⁾	20,249,451			15,678,317
Unearned fees, premiums, and discounts, net	2,804			(23,672		)
Allowance for loan losses on non-covered loans	(258,174		)	(241,930		)
Non-covered loans, net	$	19,994,081		$	15,412,715


(1)	Loans net of ASC 310-30 discount.

Summary of credit risk rating categories for the non-covered loans



	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
December 31, 2014
CRE:
Income producing	$	5,244,022	$	54,431	$	313,032	$	—	$	—	$	5,611,485
Construction	306,923		—		6,888		—		—		313,811
Land	179,319		5,701		23,730		—		—		208,750
C&I:
Commercial business	6,783,051		128,578		119,133		533		55		7,031,350
Trade finance	766,575		10,193		29,976		—		—		806,744
Residential:
Single-family	3,624,097		3,143		15,738		—		—		3,642,978
Multifamily	1,096,572		5,124		75,994		—		—		1,177,690
Consumer:
Student loans	—		—		—		—		—		—
Other consumer	1,452,953		1,005		2,685		—		—		1,456,643
Total	$	19,453,512	$	208,175	$	587,176	$	533	$	55	$	20,249,451



	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
December 31, 2013
CRE:
Income producing	$	4,032,269	$	56,752	$	212,009	$	—	$	—	$	4,301,030
Construction	127,138		6,160		6,888		—		—		140,186
Land	116,000		9,304		18,557		—		—		143,861
C&I:
Commercial business	4,400,847		92,315		143,894		—		—		4,637,056
Trade finance	681,345		22,099		19,693		—		—		723,137
Residential:
Single-family	3,167,337		8,331		17,207		—		—		3,192,875
Multifamily	923,697		1,634		67,103		—		—		992,434
Consumer:
Student loans	677,094		445		1,681		—		—		679,220
Other consumer	865,752		244		2,522		—		—		868,518
Total	$	14,991,479	$	197,284	$	489,554	$	—	$	—	$	15,678,317

Aging analysis of the Company's 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 Loans		Current Accruing Loans		Total
	(In thousands)
December 31, 2014
CRE:
Income producing	$	14,171	$	3,593	$	17,764	$	29,576	$	9,109	$	38,685	$	5,555,036	$	5,611,485
Construction	—		—		—		—		6,888		6,888		306,923		313,811
Land	—		—		—		254		2,502		2,756		205,994		208,750
C&I:
Commercial business	3,073		2,884		5,957		5,514		14,689		20,203		7,005,190		7,031,350
Trade finance	—		—		—		73		—		73		806,671		806,744
Residential:
Single-family	6,375		1,294		7,669		2,894		4,936		7,830		3,627,479		3,642,978
Multifamily	4,350		507		4,857		12,460		8,336		20,796		1,152,037		1,177,690
Consumer:
Student loans	—		—		—		—		—		—		—		—
Other consumer	2,154		162		2,316		115		540		655		1,453,672		1,456,643
Loans held for sale	642		175		817		—		3,157		3,157		41,976		45,950
Total ⁽¹⁾	$	30,765	$	8,615	$	39,380	$	50,886	$	50,157	$	101,043	$	20,154,978	$	20,295,401
Unearned fees, premiums and discounts, net															2,804
Total recorded investment in non-covered loans and loans held for sale															$	20,298,205


(1)	Loans net of ASC 310-30 discount.



	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 Loans		Current Accruing Loans		Total
	(In thousands)
December 31, 2013
CRE:
Income producing	$	12,746	$	1,798	$	14,544	$	13,924	$	22,549	$	36,473	$	4,250,013	$	4,301,030
Construction	—		—		—		—		6,888		6,888		133,298		140,186
Land	—		—		—		265		3,223		3,488		140,373		143,861
C&I:
Commercial business	3,428		6,259		9,687		6,437		15,486		21,923		4,605,446		4,637,056
Trade finance	—		—		—		—		909		909		722,228		723,137
Residential:
Single-family	4,694		922		5,616		—		11,218		11,218		3,176,041		3,192,875
Multifamily	8,580		531		9,111		19,661		7,972		27,633		955,690		992,434
Consumer:
Student loans	541		445		986		—		1,681		1,681		676,553		679,220
Other consumer	293		1		294		175		1,263		1,438		866,786		868,518
Loans held for sale	—		—		—		—		—		—		204,970		204,970
Total	$	30,282	$	9,956	$	40,238	$	40,462	$	71,189	$	111,651	$	15,731,398	$	15,883,287
Unearned fees, premiums and discounts, net															(23,672		)
Total recorded investment in non-covered loans and loans held for sale															$	15,859,615

Summary of new troubled debt restructurings modifications on the non-covered loan portfolio



	Loans Modified as TDRs During the Year Ended December 31,
	2014							2013							2012
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
	($ in thousands)
CRE:
Income producing	6	$	8,829	$	8,624	$	43	6	$	26,021	$	17,456	$	219	8	$	10,118	$	8,162	$	1,169
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	—	$	—	$	—	$	—	3	$	1,610	$	1,059	$	395
C&I:
Commercial business	13	$	4,379	$	3,089	$	2,205	6	$	16,220	$	15,624	$	4,274	14	$	5,101	$	4,374	$	560
Trade finance	1	$	190	$	73	$	14	—	$	—	$	—	$	—	2	$	2,510	$	579	$	1,506
Residential:
Single-family	9	$	11,454	$	8,269	$	—	—	$	—	$	—	$	—	12	$	6,227	$	5,556	$	938
Multifamily	6	$	5,471	$	3,705	$	7	1	$	1,093	$	1,071	$	—	16	$	28,736	$	28,153	$	3,344
Consumer:
Other consumer	1	$	509	$	504	$	—	1	$	651	$	639	$	—	1	$	108	$	108	$	—


(1)	Includes subsequent payments after modification.


(2)	The financial impact includes charge-offs and specific reserves recorded at modification date.

Troubled debt restructurings that have subsequently defaulted



	Loans Modified as TDRs that Subsequently Defaulted During the Year Ended December 31,
	2014			2013			2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
CRE:
Income producing	—	$	—	—	$	—	1	$	271
Construction	—	$	—	—	$	—	—	$	—
Land	—	$	—	—	$	—	—	$	—
C&I:
Commercial business	1	$	957	1	$	570	2	$	33
Trade finance	—	$	—	—	$	—	—	$	—
Residential:
Single-family	—	$	—	—	$	—	2	$	2,830
Multifamily	—	$	—	—	$	—	1	$	378
Consumer:
Other consumer	—	$	—	1	$	639	—	$	—

Summary of impaired non-covered loans



	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment⁽¹⁾		Related Allowance
	(In thousands)
As of December 31, 2014
CRE:
Income producing	$	57,805	$	34,399	$	15,646	$	50,045	$	1,581
Construction	6,888		6,888		—		6,888		—
Land	13,291		2,838		5,622		8,460		1,906
C&I:
Commercial business	42,396		10,552		25,717		36,269		15,174
Trade finance	280		—		274		274		28
Residential:
Single-family	17,838		5,137		11,398		16,535		461
Multifamily	37,624		21,500		12,890		34,390		313
Consumer:
Other consumer	1,259		1,151		108		1,259		1
Total	$	177,381	$	82,465	$	71,655	$	154,120	$	19,464



	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment ⁽¹⁾		Related Allowance
	(In thousands)
As of December 31, 2013
CRE:
Income producing	$	73,777	$	39,745	$	25,523	$	65,268	$	5,976
Construction	6,888		6,888		—		6,888		—
Land	17,390		4,372		7,908		12,280		2,082
C&I:
Commercial business	48,482		10,850		27,487		38,337		13,787
Trade finance	2,771		438		752		1,190		752
Residential:
Single-family	15,814		13,585		1,588		15,173		207
Multifamily	43,821		30,899		10,215		41,114		1,339
Consumer:
Student loans	1,749		1,681		—		1,681		—
Other consumer	1,945		1,546		—		1,546		—
Total	$	212,637	$	110,004	$	73,473	$	183,477	$	24,143


(1)	Excludes $10.1 million and $17.7 million of covered non-accrual loans as of December 31, 2014 and December 31, 2013, respectively, accounted for under ASC 310-10, of which some loans have additional partial balances accounted for under ASC 310-30.

Schedule of average recorded investment in impaired loans and the amount of interest income recognized on impaired loans by portfolio segment



	Year Ended December 31,
	2014				2013
	Average recorded investment		Recognized interest income⁽¹⁾		Average recorded investment		Recognized interest income ⁽¹⁾
	(In thousands)
CRE:
Income producing	$	54,544	$	1,249	$	71,856	$	2,480
Construction	6,888		—		6,888		—
Land	8,633		298		12,453		496
C&I:
Commercial business	36,528		833		38,294		735
Trade finance	336		15		1,603		11
Residential:
Single-family	16,413		342		15,322		154
Multifamily	37,128		830		35,799		850
Consumer:
Student loans	—		—		1,664		—
Other consumer	1,259		47		1,561		4
Total impaired loans (excluding PCI)	$	161,729	$	3,614	$	185,440	$	4,730


(1)	Includes interest recognized on accruing TDRs. Interest payments received on nonaccrual loans are reflected as a reduction of principal and not as interest income.

Allowance for loan losses disclosures

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



	CRE		C&I		Residential		Consumer		Total
	(In thousands)
December 31, 2014
Individually evaluated for impairment	$	65,393	$	36,543	$	50,925	$	1,259	$	154,120
Collectively evaluated for impairment	5,977,437		7,796,239		4,768,541		1,455,384		19,997,601
Acquired with deteriorated credit quality	91,216		5,312		1,202		—		97,730
Ending balance	$	6,134,046	$	7,838,094	$	4,820,668	$	1,456,643	$	20,249,451



	CRE		C&I		Residential		Consumer		Total
	(In thousands)
December 31, 2013
Individually evaluated for impairment	$	84,436	$	39,527	$	56,287	$	3,227	$	183,477
Collectively evaluated for impairment	4,500,641		5,320,666		4,129,022		1,544,511		15,494,840
Ending balance	$	4,585,077	$	5,360,193	$	4,185,309	$	1,547,738	$	15,678,317

Summary of the changes in the accretable yield for the PCI loans acquired from MetroCorp



	Year Ended
	December 31, 2014
	(In thousands)
Beginning balance	$	—
Additions	6,745
Accretion	(4,960		)
Changes in expected cash flows	3,379
Ending Balance	$	5,164

Non-covered loans

Allowance for loan losses disclosures

Summary of the activity in the allowance for loan losses on non-covered loans



	CRE				C&I			Residential			Consumer			Unallocated			Total
	(In thousands)
Year Ended December 31, 2014
Beginning balance	$	64,677			$	115,184		$	50,717		$	11,352		$	—		$	241,930
Provision for (reversal of) loan losses	6,107				40,371			(8,168		)	4,240			1,575			44,125
Allowance for unfunded loan commitments and letters of credit	—				—			—			—			(1,575		)	(1,575		)
Charge-offs	(3,294		)	⁽¹⁾	(29,592		)	(1,103		)	(5,793		)	—			(39,782		)
Recoveries	1,982				8,635			2,410			449			—			13,476
Net (charge-offs) recoveries	(1,312		)		(20,957		)	1,307			(5,344		)	—			(26,306		)
Ending balance	$	69,472			$	134,598		$	43,856		$	10,248		$	—		$	258,174
Ending balance allocated to:
Individually evaluated for impairment	$	3,487			$	15,202		$	774		$	1		$	—		$	19,464
Collectively evaluated for impairment	65,695				119,396			43,082			10,247			—			238,420
Acquired with deteriorated credit quality	290				—			—			—			—			290
Ending balance	$	69,472			$	134,598		$	43,856		$	10,248		$	—		$	258,174

(1) Includes a charge-off of $523 thousand related to PCI loans acquired from MetroCorp.



		CRE			C&I			Residential			Consumer			Unallocated			Total
	(In thousands)
Year Ended December 31, 2013
Beginning balance		$	69,856		$	105,376		$	49,349		$	4,801		$	—		$	229,382
(Reversal of) provision for loan losses		(6,615		)	12,821			1,918			8,055			2,157			18,336
Allowance for unfunded loan commitments and letters of credit		—			—			—			—			(2,157		)	(2,157		)
Charge-offs		(3,357		)	(7,405		)	(3,197		)	(2,385		)	—			(16,344		)
Recoveries		4,793			4,392			2,647			881			—			12,713
Net recoveries (charge-offs)		1,436			(3,013		)	(550		)	(1,504		)	—			(3,631		)
Ending balance		$	64,677		$	115,184		$	50,717		$	11,352		$	—		$	241,930
Ending balance allocated to:
Individually evaluated for impairment		$	8,058		$	14,539		$	1,546		$	—		$	—		$	24,143
Collectively evaluated for impairment		56,619			100,645			49,171			11,352			—			217,787
Ending balance		$	64,677		$	115,184		$	50,717		$	11,352		$	—		$	241,930



		CRE			C&I			Residential			Consumer			Unallocated			Total
	(In thousands)
Year Ended December 31, 2012
Beginning balance		$	66,457		$	87,020		$	52,180		$	4,219		$	—		$	209,876
Provision for (reversal of) loan losses		20,977			35,204			3,255			2,295			(1,563		)	60,168
Allowance for unfunded loan commitments and letters of credit		—			—			—			—			1,563			1,563
Charge-offs		(27,060		)	(21,818		)	(7,700		)	(1,824		)	—			(58,402		)
Recoveries		9,482			4,970			1,614			111			—			16,177
Net (chargeoffs) recoveries		(17,578		)	(16,848		)	(6,086		)	(1,713		)	—			(42,225		)
Ending balance		$	69,856		$	105,376		$	49,349		$	4,801		$	—		$	229,382
Ending balance allocated to:
Individually evaluated for impairment		$	5,561		$	2,835		$	3,131		$	—		$	—		$	11,527
Collectively evaluated for impairment		64,295			102,541			46,218			4,801			—			217,855
Ending balance		$	69,856		$	105,376		$	49,349		$	4,801		$	—		$	229,382