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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