LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2016

Loans and Leases Receivable Disclosure [Abstract]

Schedule of the composition of Non-PCI and PCI loans

The following table presents the composition of the Company’s non-PCI and PCI loans as of March 31, 2016 and December 31, 2015:




($ in thousands)	March 31, 2016									December 31, 2015
($ in thousands)	Non-PCI Loans			PCI Loans ⁽¹⁾			Total ⁽¹⁾			Non-PCI Loans			PCI Loans ⁽¹⁾			Total ⁽¹⁾
CRE:
Income producing	$	7,317,991		$	498,451		$	7,816,442		$	6,937,199		$	541,275		$	7,478,474
Construction	465,763			1,340			467,103			436,776			1,895			438,671
Land	165,071			2,862			167,933			187,409			6,195			193,604
Total CRE	7,948,825			502,653			8,451,478			7,561,384			549,365			8,110,749
C&I:
Commercial business	8,001,280			52,255			8,053,535			8,155,991			57,906			8,213,897
Trade finance	763,495			1,213			764,708			787,800			1,310			789,110
Total C&I	8,764,775			53,468			8,818,243			8,943,791			59,216			9,003,007
Residential:
Single-family	2,927,219			176,172			3,103,391			2,877,286			189,633			3,066,919
Multifamily	1,236,722			111,285			1,348,007			1,374,718			148,277			1,522,995
Total residential	4,163,941			287,457			4,451,398			4,252,004			337,910			4,589,914
Consumer	2,023,521			23,263			2,046,784			1,931,828			24,263			1,956,091
Total loans	$	22,901,062		$	866,841		$	23,767,903		$	22,689,007		$	970,754		$	23,659,761
Unearned fees, premiums, and discounts, net	(13,539		)	—			(13,539		)	(16,013		)	—			(16,013		)
Allowance for loan losses	(259,910		)	(328		)	(260,238		)	(264,600		)	(359		)	(264,959		)
Loans, net	$	22,627,613		$	866,513		$	23,494,126		$	22,408,394		$	970,395		$	23,378,789


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

Summary of credit risk rating by portfolio segment

The following tables present the credit risk rating for non-PCI loans by portfolio segment as of March 31, 2016 and December 31, 2015:




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total Non-PCI Loans
March 31, 2016
CRE:
Income producing	$	7,061,501	$	39,236	$	217,254	$	—	$	7,317,991
Construction	462,989		2,339		435		—		465,763
Land	150,149		—		14,922		—		165,071
C&I:
Commercial business	7,579,392		198,560		199,521		23,807		8,001,280
Trade finance	730,867		9,907		22,721		—		763,495
Residential:
Single-family	2,891,346		7,728		28,145		—		2,927,219
Multifamily	1,185,914		1,925		48,883		—		1,236,722
Consumer	2,015,809		2,650		5,062		—		2,023,521
Total	$	22,077,967	$	262,345	$	536,943	$	23,807	$	22,901,062




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total Non-PCI Loans
December 31, 2015
CRE:
Income producing	$	6,672,951	$	59,309	$	204,939	$	—	$	6,937,199
Construction	435,112		1,194		470		—		436,776
Land	172,189		—		15,220		—		187,409
C&I:
Commercial business	7,794,735		201,280		135,449		24,527		8,155,991
Trade finance	750,144		13,812		23,844		—		787,800
Residential:
Single-family	2,841,722		8,134		27,430		—		2,877,286
Multifamily	1,317,550		2,918		54,250		—		1,374,718
Consumer	1,926,418		883		4,527		—		1,931,828
Total	$	21,910,821	$	287,530	$	466,129	$	24,527	$	22,689,007

The following tables present the credit risk rating for PCI loans by portfolio segment as of March 31, 2016 and December 31, 2015:




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total PCI Loans
March 31, 2016
CRE:
Income producing	$	402,651	$	13,013	$	82,787	$	—	$	498,451
Construction	—		—		1,340		—		1,340
Land	2,272		—		590		—		2,862
C&I:
Commercial business	46,426		1,185		4,644		—		52,255
Trade finance	1,213		—		—		—		1,213
Residential:
Single-family	170,788		1,013		4,371		—		176,172
Multifamily	97,447		—		13,838		—		111,285
Consumer	21,880		452		931		—		23,263
Total ⁽¹⁾	$	742,677	$	15,663	$	108,501	$	—	$	866,841




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total PCI Loans
December 31, 2015
CRE:
Income producing	$	440,100	$	4,987	$	96,188	$	—	$	541,275
Construction	—		—		1,895		—		1,895
Land	4,285		—		1,910		—		6,195
C&I:
Commercial business	52,212		819		4,875		—		57,906
Trade finance	1,310		—		—		—		1,310
Residential:
Single-family	184,092		1,293		4,248		—		189,633
Multifamily	130,770		—		17,507		—		148,277
Consumer	23,121		452		690		—		24,263
Total ⁽¹⁾	$	835,890	$	7,551	$	127,313	$	—	$	970,754


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

Schedule of aging analysis on non-PCI loans

The following tables present the aging analysis on non-PCI loans as of March 31, 2016 and December 31, 2015:




($ 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
March 31, 2016
CRE:
Income producing	$	8,580	$	5,853	$	14,433	$	12,939	$	39,927	$	52,866	$	7,250,692	$	7,317,991
Construction	—		—		—		—		—		—		465,763		465,763
Land	1,849		121		1,970		6,182		—		6,182		156,919		165,071
C&I:
Commercial business	5,687		3,531		9,218		56,380		7,984		64,364		7,927,698		8,001,280
Trade finance	—		—		—		8,375		—		8,375		755,120		763,495
Residential:
Single-family	5,117		2,683		7,800		2,521		8,850		11,371		2,908,048		2,927,219
Multifamily	6,164		1,097		7,261		5,641		9,149		14,790		1,214,671		1,236,722
Consumer	1,522		619		2,141		3,504		1,174		4,678		2,016,702		2,023,521
Total	$	28,919	$	13,904	$	42,823	$	95,542	$	67,084	$	162,626	$	22,695,613	$	22,901,062




($ 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, 2015
CRE:
Income producing	$	3,465	$	25,256	$	28,721	$	11,359	$	17,870	$	29,229	$	6,879,249	$	6,937,199
Construction	—		—		—		14		—		14		436,762		436,776
Land	1,124		—		1,124		277		406		683		185,602		187,409
C&I:
Commercial business	1,992		1,185		3,177		50,726		14,009		64,735		8,088,079		8,155,991
Trade finance	—		—		—		—		—		—		787,800		787,800
Residential:
Single-family	7,657		2,927		10,584		92		8,634		8,726		2,857,976		2,877,286
Multifamily	6,320		981		7,301		6,486		9,758		16,244		1,351,173		1,374,718
Consumer	2,078		209		2,287		233		1,505		1,738		1,927,803		1,931,828
Total	$	22,636	$	30,558	$	53,194	$	69,187	$	52,182	$	121,369	$	22,514,444	$	22,689,007

Summary of additions and modifications to non-PCI troubled debt restructurings

The following tables present the additions to non-PCI TDRs for the three months ended March 31, 2016 and 2015:




($ in thousands)	Loans Modified as TDRs During the Three Months Ended March 31, 2016
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
CRE:
Income producing	2	$	13,775	$	13,753	$	—
C&I:
Commercial business	4	$	21,614	$	18,632	$	97
Trade finance	2	$	7,901	$	8,083	$	—
Residential:
Single-family	1	$	276	$	273	$	—
Consumer:	1	$	344	$	343	$	1




	Loans Modified as TDRs During the Three Months Ended March 31, 2015
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
CRE:
Income producing	1	$	828	$	833	$	—
C&I:
Commercial business	1	$	167	$	164	$	32
Residential:
Single-family	1	$	281	$	281	$	2


(1)	Includes subsequent payments after modification and reflects the balance as of March 31, 2016 and 2015.


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

The following tables summarize the non-PCI TDR modifications for the three months ended March 31, 2016 and 2015 by modification type:




($ in thousands)	Modification Type
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Other		Total
March 31, 2016
CRE	$	13,725	$	—	$	—	$	28	$	13,753
C&I	19,166		—		3,615		3,934		26,715
Residential	273		—		—		—		273
Consumer	343		—		—		—		343
Total	$	33,507	$	—	$	3,615	$	3,962	$	41,084




($ in thousands)	Modification Type
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Other		Total
March 31, 2015
CRE	$	—	$	833	$	—	$	—	$	833
C&I	164		—		—		—		164
Residential	281		—		—		—		281
Consumer	—		—		—		—		—
Total	$	445	$	833	$	—	$	—	$	1,278


(1)	Principal modification includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.


(2)	Principal and interest modification includes principal and interest deferments or reductions.

The following table presents information for loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three months ended March 31, 2016 and 2015, and are still in default at period end:




	Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31,
	2016			2015
($ in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
C&I:
Commercial business	4	$	954	—	$	—

Summary of non-PCI impaired loans

The following tables present information on impaired non-PCI loans as of March 31, 2016 and December 31, 2015:




($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
March 31, 2016
CRE:
Income producing	$	78,858	$	63,561	$	7,725	$	71,286	$	351
Land	7,062		5,522		1,279		6,801		111
C&I:
Commercial business	105,973		31,716		61,401		93,117		16,888
Trade finance	12,425		8,083		4,318		12,401		43
Residential:
Single-family	19,759		6,085		12,077		18,162		548
Multifamily	23,968		16,129		6,082		22,211		267
Consumer	1,630		—		1,628		1,628		57
Total	$	249,675	$	131,096	$	94,510	$	225,606	$	18,265




($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
December 31, 2015
CRE:
Income producing	$	47,043	$	24,347	$	15,720	$	40,067	$	3,148
Construction	66		—		14		14		1
Land	1,537		632		683		1,315		118
C&I:
Commercial business	81,720		31,045		40,111		71,156		15,993
Trade finance	10,675		—		10,675		10,675		95
Residential:
Single-family	16,486		4,401		10,611		15,012		584
Multifamily	25,634		16,944		6,783		23,727		339
Consumer	1,240		—		1,240		1,240		60
Total	$	184,401	$	77,369	$	85,837	$	163,206	$	20,338

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

The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans during the three months ended March 31, 2016 and 2015:




($ in thousands)	Three Months Ended March 31,
	2016				2015
	Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾
CRE:
Income producing	$	72,248	$	391	$	44,195	$	141
Construction	—		—		3,902		—
Land	6,908		9		3,438		10
C&I:
Commercial business	92,707		369		39,310		202
Trade finance	13,756		66		245		3
Residential:
Single-family	18,318		65		15,423		68
Multifamily	22,338		77		26,987		203
Consumer	1,635		16		1,258		12
Total impaired non-PCI loans	$	227,910	$	993	$	134,758	$	639


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

Summary of the activity in the allowance for credit losses by portfolio segment

The following tables present a summary of activities in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015:




($ in thousands)	Non-PCI Loans															PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Three Months Ended March 31, 2016
Beginning balance	$	81,191		$	134,597		$	39,292		$	9,520		$	264,600		$	359		$	264,959
Provision for (reversal of) loan losses	1,306			4,654			(5,317		)	(226		)	417			(31		)	386
Charge-offs	(56		)	(5,860		)	(137		)	(1		)	(6,054		)	—			(6,054		)
Recoveries	97			686			97			67			947			—			947
Net recoveries (charge-offs)	41			(5,174		)	(40		)	66			(5,107		)	—			(5,107		)
Ending balance	$	82,538		$	134,077		$	33,935		$	9,360		$	259,910		$	328		$	260,238




($ in thousands)	Non-PCI Loans															PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Three Months Ended March 31, 2015
Beginning balance	$	72,263		$	134,598		$	43,856		$	10,248		$	260,965		$	714		$	261,679
(Reversal of) provision for loan losses	(2,333		)	5,378			(1,571		)	664			2,138			(71		)	2,067
Charge-offs	(1,002		)	(6,589		)	(746		)	(463		)	(8,800		)	—			(8,800		)
Recoveries	812			527			1,451			2			2,792			—			2,792
Net (charge-offs) recoveries	(190		)	(6,062		)	705			(461		)	(6,008		)	—			(6,008		)
Ending balance	$	69,740		$	133,914		$	42,990		$	10,451		$	257,095		$	643		$	257,738

For further information on accounting policies and the methodology used to estimate the allowance for credit losses and loan charge-offs, please see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2015 Form 10-K.

The following table presents a summary of activities in the allowance for unfunded credit reserves during the three months ended March 31, 2016 and 2015:




($ in thousands)	Three Months Ended March 31,
($ in thousands)	2016		2015
Beginning balance	$	20,360	$	12,712
Provision for unfunded credit reserves	1,054		2,920
Ending balance	$	21,414	$	15,632

Allowance for loan losses and recorded investment in total loans receivable by portfolio segment, disaggregated by impairment methodology

The following tables present the Company’s allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of March 31, 2016 and December 31, 2015:




($ in thousands)	CRE		C&I		Residential		Consumer		Total
As of March 31, 2016
Allowance for loan losses
Individually evaluated for impairment	$	462	$	16,931	$	815	$	57	$	18,265
Collectively evaluated for impairment	82,076		117,146		33,120		9,303		241,645
Acquired with deteriorated credit quality	314		10		4		—		328
Ending balance	$	82,852	$	134,087	$	33,939	$	9,360	$	260,238

Recorded investment in loans
Individually evaluated for impairment	$	78,087	$	105,518	$	40,373	$	1,628	$	225,606
Collectively evaluated for impairment	7,870,738		8,659,257		4,123,568		2,021,893		22,675,456
Acquired with deteriorated credit quality ⁽¹⁾	502,653		53,468		287,457		23,263		866,841
Ending balance ⁽¹⁾	$	8,451,478	$	8,818,243	$	4,451,398	$	2,046,784	$	23,767,903




($ in thousands)	CRE		C&I		Residential		Consumer		Total
As of December 31, 2015
Allowance for loan losses
Individually evaluated for impairment	$	3,267	$	16,088	$	923	$	60	$	20,338
Collectively evaluated for impairment	77,924		118,509		38,369		9,460		244,262
Acquired with deteriorated credit quality	347		9		3		—		359
Ending balance	$	81,538	$	134,606	$	39,295	$	9,520	$	264,959

Recorded investment in loans
Individually evaluated for impairment	$	41,396	$	81,831	$	38,739	$	1,240	$	163,206
Collectively evaluated for impairment	7,519,988		8,861,960		4,213,265		1,930,588		22,525,801
Acquired with deteriorated credit quality ⁽¹⁾	549,365		59,216		337,910		24,263		970,754
Ending balance ⁽¹⁾	$	8,110,749	$	9,003,007	$	4,589,914	$	1,956,091	$	23,659,761


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

Summary of changes in the accretable yield for the PCI loans

The following table presents the changes in accretable yield for PCI loans for the three months ended March 31, 2016 and 2015:




($ in thousands)	Three Months Ended March 31,
($ in thousands)	2016			2015
Beginning balance	$	214,907		$	311,688
Accretion	(22,429		)	(30,569		)
Changes in expected cash flows	(6,487		)	12,036
Ending balance	$	185,991		$	293,155