LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2015

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Schedule of the composition of Non-PCI and PCI loans




	June 30, 2015									December 31, 2014
($ in thousands)	Non-PCI Loans			PCI Loans ⁽¹⁾			Total ⁽¹⁾			Non-PCI Loans			PCI Loans ⁽¹⁾			Total ⁽¹⁾
CRE:
Income Producing	$	6,087,661		$	626,504		$	6,714,165		$	5,568,046		$	688,013		$	6,256,059
Construction	370,323			7,451			377,774			319,843			12,444			332,287
Land	182,337			12,597			194,934			214,327			16,840			231,167
Total CRE	6,640,321			646,552			7,286,873			6,102,216			717,297			6,819,513
C&I:
Commercial business	7,311,273			66,332			7,377,605			7,097,853			83,336			7,181,189
Trade finance	768,279			4,780			773,059			889,728			6,284			896,012
Total C&I	8,079,552			71,112			8,150,664			7,987,581			89,620			8,077,201
Residential:
Single-family	3,119,679			203,473			3,323,152			3,647,262			219,519			3,866,781
Multifamily	1,250,436			224,044			1,474,480			1,184,017			265,891			1,449,908
Total residential	4,370,115			427,517			4,797,632			4,831,279			485,410			5,316,689
Consumer	1,702,822			26,621			1,729,443			1,483,956			29,786			1,513,742
Total loans	$	20,792,810		$	1,171,802		$	21,964,612		$	20,405,032		$	1,322,113		$	21,727,145
Unearned fees, premiums, and discounts, net	(5,948		)	—			(5,948		)	2,804			—			2,804
Allowance for loan losses	(260,617		)	(612		)	(261,229		)	(260,965		)	(714		)	(261,679		)
Loans, net	$	20,526,245		$	1,171,190		$	21,697,435		$	20,146,871		$	1,321,399		$	21,468,270

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

Summary of credit risk rating by portfolio segment




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non-PCI Loans
June 30, 2015
CRE:
Income producing	$	5,810,946	$	48,382	$	228,333	$	—	$	—	$	6,087,661
Construction	366,869		—		3,454		—		—		370,323
Land	159,751		—		22,586		—		—		182,337
C&I:
Commercial business	6,978,635		162,020		166,851		3,767		—		7,311,273
Trade finance	726,648		19,193		22,438		—		—		768,279
Residential:
Single-family	3,095,832		5,627		18,220		—		—		3,119,679
Multifamily	1,186,826		985		62,625		—		—		1,250,436
Consumer	1,698,617		1,359		2,846		—		—		1,702,822
Total	$	20,024,124	$	237,566	$	527,353	$	3,767	$	—	$	20,792,810




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non-PCI Loans
December 31, 2014
CRE:
Income producing	$	5,243,640	$	54,673	$	269,733	$	—	$	—	$	5,568,046
Construction	310,259		11		9,573		—		—		319,843
Land	185,220		5,701		23,406		—		—		214,327
C&I:
Commercial business	6,836,914		130,319		130,032		533		55		7,097,853
Trade finance	845,889		13,031		30,808		—		—		889,728
Residential:
Single-family	3,627,491		3,143		16,628		—		—		3,647,262
Multifamily	1,095,982		5,124		82,911		—		—		1,184,017
Consumer	1,480,208		1,005		2,743		—		—		1,483,956
Total	$	19,625,603	$	213,007	$	565,834	$	533	$	55	$	20,405,032




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total PCI Loans
June 30, 2015
CRE:
Income producing	$	505,872	$	6,920	$	113,712	$	—	$	626,504
Construction	584		—		6,867		—		7,451
Land	10,333		—		2,264		—		12,597
C&I:
Commercial business	58,216		930		7,186		—		66,332
Trade finance	3,073		—		1,707		—		4,780
Residential:
Single-family	198,113		957		4,403		—		203,473
Multifamily	193,061		664		30,319		—		224,044
Consumer	26,018		113		490		—		26,621
Total ⁽¹⁾	$	995,270	$	9,584	$	166,948	$	—	$	1,171,802

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




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total PCI Loans
December 31, 2014
CRE:
Income producing	$	534,015	$	9,960	$	144,038	$	—	$	688,013
Construction	589		1,744		10,111		—		12,444
Land	7,012		5,391		4,437		—		16,840
C&I:
Commercial business	70,586		1,103		11,647		—		83,336
Trade finance	4,620		—		1,664		—		6,284
Residential:
Single-family	213,829		374		5,316		—		219,519
Multifamily	230,049		—		35,842		—		265,891
Consumer	29,026		116		644		—		29,786
Total ⁽¹⁾	$	1,089,726	$	18,688	$	213,699	$	—	$	1,322,113

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

Schedule of aging analysis on non-PCI loans




($ in thousands)	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 Non-PCI Loans
June 30, 2015
CRE:
Income producing	$	6,761	$	3,762	$	10,523	$	18,858	$	12,193	$	31,051	$	6,046,087	$	6,087,661
Construction	4,982		—		4,982		14		—		14		365,327		370,323
Land	5,701		—		5,701		308		4,743		5,051		171,585		182,337
C&I:
Commercial business	2,973		11,429		14,402		6,987		23,508		30,495		7,266,376		7,311,273
Trade finance	2,500		470		2,970		—		—		—		765,309		768,279
Residential:
Single-family	8,081		4,167		12,248		2,736		5,713		8,449		3,098,982		3,119,679
Multifamily	945		1,999		2,944		10,034		1,375		11,409		1,236,083		1,250,436
Consumer	2,839		959		3,798		163		525		688		1,698,336		1,702,822
Total	$	34,782	$	22,786	$	57,568	$	39,100	$	48,057	$	87,157	$	20,648,085	$	20,792,810
Unearned fees, premiums and discounts, net															(5,948		)
Total recorded investment in non-PCI loans															$	20,786,862




($ in thousands)	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 Non-PCI Loans
December 31, 2014
CRE:
Income producing	$	14,171	$	3,593	$	17,764	$	19,348	$	9,165	$	28,513	$	5,521,769	$	5,568,046
Construction	—		—		—		15		6,898		6,913		312,930		319,843
Land	—		—		—		221		2,502		2,723		211,604		214,327
C&I:
Commercial business	3,187		4,361		7,548		6,623		21,813		28,436		7,061,869		7,097,853
Trade finance	—		—		—		73		292		365		889,363		889,728
Residential:
Single-family	6,381		1,294		7,675		2,861		5,764		8,625		3,630,962		3,647,262
Multifamily	4,425		507		4,932		12,460		8,359		20,819		1,158,266		1,184,017
Consumer	2,154		162		2,316		169		3,699		3,868		1,477,772		1,483,956
Total	$	30,318	$	9,917	$	40,235	$	41,770	$	58,492	$	100,262	$	20,264,535	$	20,405,032
Unearned fees, premiums and discounts, net															2,804
Total recorded investment in non-PCI loans															$	20,407,836

Summary of additions to non-PCI troubled debt restructurings




	Loans Modified as TDRs During the Three Months Ended June 30,
	2015							2014
($ in thousands)	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⁾
CRE:
Income producing	—	$	—	$	—	$	—	2	$	5,318	$	5,254	$	—
Land	1	$	171	$	100	$	102	—	$	—	$	—	$	—
C&I:
Commercial business	12	$	37,924	$	38,117	$	5,465	2	$	1,165	$	1,155	$	563
Residential:
Single-family	—	$	—	$	—	$	—	1	$	1,032	$	1,030	$	—
Multifamily	—	$	—	$	—	$	—	1	$	2,513	$	2,973	$	—




	Loans Modified as TDRs During the Six Months Ended June 30,
	2015							2014
($ in thousands)	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⁾
CRE:
Income producing	1	$	828	$	818	$	—	2	$	5,318	$	5,254	$	—
Land	1	$	171	$	100	$	102	—	$	—	$	—	$	—
C&I:
Commercial business	13	$	38,090	$	38,280	$	5,497	7	$	2,886	$	2,828	$	1,811
Residential:
Single-family	1	$	281	$	281	$	2	4	$	6,855	$	5,105	$	—
Multifamily	—	$	—	$	—	$	—	1	$	2,513	$	2,973	$	—

(1) Includes subsequent payments after modification and reflects the balance as of June 30, 2015 and 2014.

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

Summary of non-PCI impaired loans




($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
June 30, 2015
CRE:
Income producing	$	53,002	$	34,274	$	11,295	$	45,569	$	1,447
Construction	57		—		14		14		3
Land	10,755		4,455		1,354		5,809		191
C&I:
Commercial business	83,775		18,687		52,778		71,465		22,584
Trade finance	11,452		—		11,452		11,452		106
Residential:
Single-family	16,926		5,930		9,606		15,536		493
Multifamily	25,899		17,299		6,241		23,540		250
Consumer	1,253		643		610		1,253		2
Total	$	203,119	$	81,288	$	93,350	$	174,638	$	25,076




($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
December 31, 2014
CRE:
Income producing	$	58,900	$	35,495	$	15,646	$	51,141	$	1,581
Construction	6,913		6,913		—		6,913		—
Land	13,291		2,838		5,622		8,460		1,906
C&I:
Commercial business	44,569		12,723		25,717		38,440		15,174
Trade finance	12,967		6,431		274		6,705		28
Residential:
Single-family	18,908		6,003		11,398		17,401		461
Multifamily	37,649		21,523		12,890		34,413		313
Consumer	1,259		1,151		108		1,259		1
Total	$	194,456	$	93,077	$	71,655	$	164,732	$	19,464

Schedule of average recorded investment and amount of interest income on non-PCI impaired loans




	Three Months Ended June 30,								Six Months Ended June 30,
	2015				2014				2015				2014
($ in thousands)	Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾
CRE:
Income producing	$	46,042	$	134	$	59,121	$	281	$	46,897	$	268	$	59,917	$	627
Construction	14		—		6,888		—		14		—		6,888		—
Land	5,876		10		12,128		75		5,951		20		12,179		149
C&I:
Commercial business	73,306		761		41,592		209		71,644		1,550		42,682		420
Trade finance	11,623		51		546		4		11,739		134		559		8
Residential:
Single-family	15,595		68		15,131		57		15,658		137		14,034		115
Multifamily	23,690		190		36,683		180		23,757		379		36,817		360
Consumer	1,256		12		755		7		1,258		23		752		14
Total impaired non-PCI loans	$	177,402	$	1,226	$	172,844	$	813	$	176,918	$	2,511	$	173,828	$	1,693


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

Summary of the activity in the allowance for loan losses




	Non-PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Unallocated			Total			PCI Loans			Total
Three Months Ended June 30, 2015
Beginning balance	$	69,740		$	133,914		$	42,990		$	10,451		$	—		$	257,095		$	643		$	257,738
Provision for (reversal of) loan losses	5,739			(2,716		)	(3,318		)	(289		)	4,109			3,525			(31		)	3,494
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			(4,109		)	(4,109		)	—			(4,109		)
Charge-offs	(348		)	(2,843		)	(1		)	—			—			(3,192		)	—			(3,192		)
Recoveries	365			5,607			997			329			—			7,298			—			7,298
Net recoveries	17			2,764			996			329			—			4,106			—			4,106
Ending balance	$	75,496		$	133,962		$	40,668		$	10,491		$	—		$	260,617		$	612		$	261,229
Ending balance allocated to:
Individually evaluated for impairment	$	1,641		$	22,690		$	743		$	2		$	—		$	25,076		$	—		$	25,076
Collectively evaluated for impairment	73,855			111,272			39,925			10,489			—			235,541			—			235,541
Acquired with deteriorated credit quality	—			—			—			—			—			—			612			612
Ending balance	$	75,496		$	133,962		$	40,668		$	10,491		$	—		$	260,617		$	612		$	261,229




	Non-PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Unallocated			Total			PCI Loans			Total
Three Months Ended June 30, 2014
Beginning balance	$	63,627		$	127,156		$	47,995		$	11,156		$	—		$	249,934		$	2,202		$	252,136
(Reversal of) provision for loan losses	(2,387		)	10,918			(2,048		)	809			829			8,121			(121		)	8,000
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			(829		)	(829		)	—			(829		)
Charge-offs	(894		)	(7,413		)	(61		)	(80		)	—			(8,448		)	(523		)	(8,971		)
Recoveries	549			396			63			4			—			1,012			—			1,012
Net (charge-offs) recoveries	(345		)	(7,017		)	2			(76		)	—			(7,436		)	(523		)	(7,959		)
Ending balance	$	60,895		$	131,057		$	45,949		$	11,889		$	—		$	249,790		$	1,558		$	251,348
Ending balance allocated to:
Individually evaluated for impairment	$	4,546		$	18,918		$	1,377		$	—		$	—		$	24,841		$	—		$	24,841
Collectively evaluated for impairment	56,349			112,139			44,572			11,889			—			224,949			—			224,949
Acquired with deteriorated credit quality	—			—			—			—			—			—			1,558			1,558
Ending balance	$	60,895		$	131,057		$	45,949		$	11,889		$	—		$	249,790		$	1,558		$	251,348




	Non-PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Unallocated			Total			PCI Loans			Total
Six Months Ended June 30, 2015
Beginning balance	$	72,263		$	134,598		$	43,856		$	10,248		$	—		$	260,965		$	714		$	261,679
Provision for (reversal of) loan losses	3,406			2,662			(4,889		)	375			7,029			8,583			(102		)	8,481
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			(7,029		)	(7,029		)	—			(7,029		)
Charge-offs	(1,350		)	(9,432		)	(747		)	(463		)	—			(11,992		)	—			(11,992		)
Recoveries	1,177			6,134			2,448			331			—			10,090			—			10,090
Net (charge-offs) recoveries	(173		)	(3,298		)	1,701			(132		)	—			(1,902		)	—			(1,902		)
Ending balance	$	75,496		$	133,962		$	40,668		$	10,491		$	—		$	260,617		$	612		$	261,229
Ending balance allocated to:
Individually evaluated for impairment	$	1,641		$	22,690		$	743		$	2		$	—		$	25,076		$	—		$	25,076
Collectively evaluated for impairment	73,855			111,272			39,925			10,489			—			235,541			—			235,541
Acquired with deteriorated credit quality	—			—			—			—			—			—			612			612
Ending balance	$	75,496		$	133,962		$	40,668		$	10,491		$	—		$	260,617		$	612		$	261,229




	Non-PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Unallocated			Total			PCI Loans			Total
Six Months Ended June 30, 2014
Beginning balance	$	70,154		$	115,184		$	50,716		$	11,352		$	—		$	247,406		$	2,269		$	249,675
(Reversal of) provision for loan losses	(9,423		)	27,510			(4,623		)	613			1,044			15,121			(188		)	14,933
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			(1,044		)	(1,044		)	—			(1,044		)
Charge-offs	(1,213		)	(12,944		)	(344		)	(83		)	—			(14,584		)	(523		)	(15,107		)
Recoveries	1,377			1,307			200			7			—			2,891			—			2,891
Net recoveries (charge-offs)	164			(11,637		)	(144		)	(76		)	—			(11,693		)	(523		)	(12,216		)
Ending balance	$	60,895		$	131,057		$	45,949		$	11,889		$	—		$	249,790		$	1,558		$	251,348
Ending balance allocated to:
Individually evaluated for impairment	$	4,546		$	18,918		$	1,377		$	—		$	—		$	24,841		$	—		$	24,841
Collectively evaluated for impairment	56,349			112,139			44,572			11,889			—			224,949			—			224,949
Acquired with deteriorated credit quality	—			—			—			—			—			—			1,558			1,558
Ending balance	$	60,895		$	131,057		$	45,949		$	11,889		$	—		$	249,790		$	1,558		$	251,348

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




($ in thousands)	CRE		C&I		Residential		Consumer		Total
As of June 30, 2015
Individually evaluated for impairment	$	51,392	$	82,917	$	39,076	$	1,253	$	174,638
Collectively evaluated for impairment	6,588,929		7,996,635		4,331,039		1,701,569		20,618,172
Acquired with deteriorated credit quality⁽¹⁾	646,552		71,112		427,517		26,621		1,171,802
Ending Balance⁽¹⁾	$	7,286,873	$	8,150,664	$	4,797,632	$	1,729,443	$	21,964,612

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




($ in thousands)	CRE		C&I		Residential		Consumer		Total
As of December 31, 2014
Individually evaluated for impairment	$	66,514	$	45,145	$	51,814	$	1,259	$	164,732
Collectively evaluated for impairment	6,035,702		7,942,436		4,779,465		1,482,697		20,240,300
Acquired with deteriorated credit quality ⁽¹⁾	717,297		89,620		485,410		29,786		1,322,113
Ending Balance⁽¹⁾	$	6,819,513	$	8,077,201	$	5,316,689	$	1,513,742	$	21,727,145

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

Summary of changes in the accretable yield for the PCI loans




	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2015			2014			2015			2014
Beginning balance	$	293,155		$	430,456		$	311,688		$	461,545
Addition	—			—			—			6,745
Accretion	(23,359		)	(65,623		)	(53,928		)	(127,569		)
Changes in expected cash flows	2,066			28,061			14,102			52,173
Ending balance	$	271,862		$	392,894		$	271,862		$	392,894

Summary of the FDIC indemnification asset/net payable to the FDIC




	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2015			2014			2015			2014
Beginning balance	$	(101,411	)	$	27,552		$	(96,106	)	$	74,708
Amortization	(1,257		)	(29,303		)	(2,799		)	(57,793		)
Reductions ⁽¹⁾	(504		)	(14,111		)	(1,153		)	(25,953		)
Estimate of FDIC repayment ⁽²⁾	(1,882		)	(8,475		)	(4,996		)	(15,299		)
Ending balance	$	(105,054	)	$	(24,337	)	$	(105,054	)	$	(24,337	)


(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.