LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 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 December 31, 2016 and 2015:




($ in thousands)	December 31, 2016									December 31, 2015
($ in thousands)	Non-PCI Loans⁽¹⁾			PCI Loans⁽²⁾			Total⁽¹⁾⁽²⁾			Non-PCI Loans⁽¹⁾			PCI Loans⁽²⁾			Total⁽¹⁾⁽²⁾
CRE:
Income producing	$	7,667,661		$	348,448		$	8,016,109		$	6,930,537		$	541,275		$	7,471,812
Construction	551,560			—			551,560			432,728			1,895			434,623
Land	121,276			1,918			123,194			187,442			6,195			193,637
Total CRE	8,340,497			350,366			8,690,863			7,550,707			549,365			8,100,072
C&I:
Commercial business	8,921,246			38,387			8,959,633			8,143,858			57,906			8,201,764
Trade finance	680,930			—			680,930			788,461			1,310			789,771
Total C&I	9,602,176			38,387			9,640,563			8,932,319			59,216			8,991,535
Residential:
Single-family	3,370,669			139,110			3,509,779			2,880,336			189,633			3,069,969
Multifamily	1,490,285			95,654			1,585,939			1,376,090			148,277			1,524,367
Total residential	4,860,954			234,764			5,095,718			4,256,426			337,910			4,594,336
Consumer	2,057,067			18,928			2,075,995			1,933,542			24,263			1,957,805
Total loans	$	24,860,694		$	642,445		$	25,503,139		$	22,672,994		$	970,754		$	23,643,748
Allowance for loan losses	(260,402		)	(118		)	(260,520		)	(264,600		)	(359		)	(264,959		)
Loans, net	$	24,600,292		$	642,327		$	25,242,619		$	22,408,394		$	970,395		$	23,378,789


(1)	Includes $1.2 million and $(16.0) million as of December 31, 2016 and 2015, respectively, of unearned fees, net deferred loan fees and unamortized premiums and unaccreted discounts.


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

Summary of credit risk rating for non-PCI and PCI loans by portfolio segment

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




($ in thousands)	December 31, 2016
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non- PCI Loans
CRE:
Income producing	$	7,476,804	$	29,005	$	161,852	$	—	$	—	$	7,667,661
Construction	551,560		—		—		—		—		551,560
Land	107,976		—		13,290		10		—		121,276
C&I:
Commercial business	8,559,674		155,276		201,139		5,157		—		8,921,246
Trade finance	635,027		9,435		36,460		—		8		680,930
Residential:
Single-family	3,341,015		10,179		19,475		—		—		3,370,669
Multifamily	1,462,522		2,268		25,495		—		—		1,490,285
Consumer	2,043,405		6,764		6,898		—		—		2,057,067
Total	$	24,177,983	$	212,927	$	464,609	$	5,167	$	8	$	24,860,694




($ in thousands)	December 31, 2015
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non- PCI Loans
CRE:
Income producing	$	6,665,994	$	59,290	$	205,238	$	—	$	15	$	6,930,537
Construction	431,100		1,158		470		—		—		432,728
Land	172,093		—		15,349		—		—		187,442
C&I:
Commercial business	7,780,686		201,016		137,740		24,416		—		8,143,858
Trade finance	750,770		13,836		23,847		—		8		788,461
Residential:
Single-family	2,844,758		8,092		27,486		—		—		2,880,336
Multifamily	1,318,896		2,928		54,266		—		—		1,376,090
Consumer	1,927,755		1,246		4,541		—		—		1,933,542
Total	$	21,892,052	$	287,566	$	468,937	$	24,416	$	23	$	22,672,994

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




($ in thousands)	December 31, 2016
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total PCI Loans
CRE:
Income producing	$	293,529	$	3,239	$	51,680	$	—	$	—	$	348,448
Construction	—		—		—		—		—		—
Land	1,562		—		356		—		—		1,918
C&I:
Commercial business	33,885		772		3,730		—		—		38,387
Trade finance	—		—		—		—		—		—
Residential:
Single-family	136,245		1,239		1,626		—		—		139,110
Multifamily	86,190		—		9,464		—		—		95,654
Consumer	17,433		316		1,179		—		—		18,928
Total ⁽¹⁾	$	568,844	$	5,566	$	68,035	$	—	$	—	$	642,445




($ in thousands)	December 31, 2015
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total PCI Loans
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 December 31, 2016 and 2015:




($ in thousands)	December 31, 2016
($ 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
CRE:
Income producing	$	6,233	$	14,080	$	20,313	$	14,872	$	12,035	$	26,907	$	7,620,441	$	7,667,661
Construction	4,994		—		4,994		—		—		—		546,566		551,560
Land	—		—		—		433		4,893		5,326		115,950		121,276
C&I:
Commercial business	45,052		2,279		47,331		60,511		20,737		81,248		8,792,667		8,921,246
Trade finance	—		—		—		8		—		8		680,922		680,930
Residential:
Single-family	9,595		8,076		17,671		—		4,214		4,214		3,348,784		3,370,669
Multifamily	3,951		374		4,325		2,790		194		2,984		1,482,976		1,490,285
Consumer	3,327		3,228		6,555		165		1,965		2,130		2,048,382		2,057,067
Total	$	73,152	$	28,037	$	101,189	$	78,779	$	44,038	$	122,817	$	24,636,688	$	24,860,694




($ in thousands)	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
CRE:
Income producing	$	3,481	$	25,254	$	28,735	$	11,393	$	17,952	$	29,345	$	6,872,457	$	6,930,537
Construction	—		—		—		14		—		14		432,714		432,728
Land	1,124		—		1,124		280		406		686		185,632		187,442
C&I:
Commercial business	2,029		1,203		3,232		50,747		14,128		64,875		8,075,751		8,143,858
Trade finance	—		—		—		8		—		8		788,453		788,461
Residential:
Single-family	7,649		2,919		10,568		104		8,655		8,759		2,861,009		2,880,336
Multifamily	6,339		983		7,322		6,473		9,795		16,268		1,352,500		1,376,090
Consumer	2,174		268		2,442		232		1,511		1,743		1,929,357		1,933,542
Total	$	22,796	$	30,627	$	53,423	$	69,251	$	52,447	$	121,698	$	22,497,873	$	22,672,994

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

The following table presents information for loans modified as TDRs within the previous 12 months that have subsequently defaulted during the years ended December 31, 2016, 2015 and 2014, and were still in default at the respective years ended:




($ in thousands)	Loans Modified as TDRs that Subsequently Defaulted During the Year Ended December 31,
	2016			2015			2014
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
CRE:
Income producing	2	$	3,150	—	$	—	—	$	—
Land	1	$	4,883	—	$	—	—	$	—
C&I:
Commercial business	—	$	—	—	$	—	1	$	957
Residential:
Single-family	—	$	—	1	$	279	—	$	—

The following tables present the additions to non-PCI TDRs for the years ended December 31, 2016, 2015 and 2014:




($ in thousands)	Loans Modified as TDRs During the Year Ended December 31, 2016
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
CRE:
Income producing	6	$	19,275	$	18,824	$	701
Land	1	$	5,522	$	4,883	$	—
C&I:
Commercial business	17	$	62,024	$	35,278	$	20,549
Trade finance	1	$	3,967	$	5,127	$	25
Residential:
Single-family	3	$	1,291	$	1,268	$	—
Consumer	3	$	491	$	382	$	1




($ in thousands)	Loans Modified as TDRs During the Year Ended December 31, 2015
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
CRE:
Income producing	3	$	1,802	$	1,727	$	—
Land	2	$	2,227	$	83	$	102
C&I:
Commercial business	18	$	42,816	$	34,165	$	6,726
Residential:
Single-family	1	$	281	$	279	$	2




($ in thousands)	Loans Modified as TDRs During the Year Ended December 31, 2014
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
CRE:
Income producing	6	$	8,829	$	8,624	$	43
C&I:
Commercial business	13	$	4,379	$	3,089	$	2,205
Trade finance	1	$	190	$	73	$	14
Residential:
Single-family	9	$	11,454	$	8,269	$	—
Multifamily	6	$	5,471	$	3,705	$	7
Consumer	1	$	509	$	504	$	—


(1)	Includes subsequent payments after modification and reflects the balance as of December 31, 2016, 2015 and 2014.


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

The following tables present the non-PCI TDR modifications for the years ended December 31, 2016, 2015 and 2014 by modification type:




($ in thousands)	Modification Type During the Year Ended December 31, 2016
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
CRE	$	22,633	$	—	$	—	$	—	$	1,074	$	23,707
C&I	34,499		—		5,876		30		—		40,405
Residential	264		—		797		207		—		1,268
Consumer	333		—		49		—		—		382
Total	$	57,729	$	—	$	6,722	$	237	$	1,074	$	65,762




($ in thousands)	Modification Type During the Year Ended December 31, 2015
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
CRE	$	548	$	787	$	—	$	—	$	475	$	1,810
C&I	16,364		17,801		—		—		—		34,165
Residential	279		—		—		—		—		279
Total	$	17,191	$	18,588	$	—	$	—	$	475	$	36,254




($ in thousands)	Modification Type During the Year Ended December 31, 2014
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
CRE	$	691	$	5,100	$	2,165	$	—	$	668	$	8,624
C&I	2,677		73		94		—		318		3,162
Residential	9,756		1,471		—		—		747		11,974
Consumer	—		—		—		—		504		504
Total	$	13,124	$	6,644	$	2,259	$	—	$	2,237	$	24,264


(1)	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)	Includes principal and interest deferments or reductions.

Summary of non-PCI impaired loans

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




($ in thousands)	December 31, 2016
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
CRE:
Income producing	$	50,718	$	32,507	$	14,001	$	46,508	$	1,263
Land	6,457		5,427		443		5,870		63
C&I:
Commercial business	162,239		78,316		42,137		120,453		10,443
Trade finance	5,227		—		5,166		5,166		34
Residential:
Single-family	15,435		—		14,335		14,335		687
Multifamily	11,181		5,684		4,357		10,041		180
Consumer	4,016		—		3,682		3,682		31
Total	$	255,273	$	121,934	$	84,121	$	206,055	$	12,701




($ in thousands)	December 31, 2015
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
CRE:
Income producing	$	47,043	$	24,416	$	15,800	$	40,216	$	3,197
Construction	66		—		14		14		1
Land	1,537		660		685		1,345		118
C&I:
Commercial business	81,720		31,071		40,328		71,399		16,005
Trade finance	10,675		8		10,681		10,689		95
Residential:
Single-family	16,486		4,406		10,636		15,042		584
Multifamily	25,634		16,946		6,805		23,751		339
Consumer	1,240		—		1,242		1,242		60
Total	$	184,401	$	77,507	$	86,191	$	163,698	$	20,399

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 years ended December 31, 2016, 2015 and 2014:




($ in thousands)	Year Ended December 31,
	2016				2015				2014
	Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾
CRE:
Income producing	$	47,064	$	1,253	$	43,598	$	536	$	54,509	$	1,249
Construction	—		—		14		—		6,884		—
Land	6,388		34		2,726		39		8,627		298
C&I:
Commercial business	144,807		2,464		73,886		315		36,504		833
Trade finance	4,179		148		11,404		223		336		15
Residential:
Single-family	14,323		447		15,365		242		16,402		342
Multifamily	15,763		302		24,024		312		37,104		830
Consumer	3,703		63		1,252		47		1,258		47
Total non-PCI impaired loans	$	236,227	$	4,711	$	172,269	$	1,714	$	161,624	$	3,614


(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

The following tables present a summary of activities in the allowance for loan losses by portfolio segment for the years ended December 31, 2016, 2015 and 2014:




($ in thousands)	Year Ended December 31, 2016
	Non-PCI Loans															PCI Loans			Total
	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	81,191		$	134,597		$	39,292		$	9,520		$	264,600		$	359		$	264,959
(Reversal of) provision for loan losses	(9,497		)	46,855			(3,670		)	(1,729		)	31,959			(241		)	31,718
Charge-offs	(581		)	(47,739		)	(166		)	(22		)	(48,508		)	—			(48,508		)
Recoveries	1,691			8,453			1,877			330			12,351			—			12,351
Net recoveries (charge-offs)	1,110			(39,286		)	1,711			308			(36,157		)	—			(36,157		)
Ending balance	$	72,804		$	142,166		$	37,333		$	8,099		$	260,402		$	118		$	260,520




($ in thousands)	Year Ended December 31, 2015
	Non-PCI Loans															PCI Loans			Total
	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	72,263		$	134,598		$	43,856		$	10,248		$	260,965		$	714		$	261,679
Provision for (reversal of) loan losses	3,338			11,640			(7,499		)	(555		)	6,924			(355		)	6,569
Charge-offs	(1,545		)	(20,423		)	(1,686		)	(600		)	(24,254		)	—			(24,254		)
Recoveries	7,135			8,782			4,621			427			20,965			—			20,965
Net recoveries (charge-offs)	5,590			(11,641		)	2,935			(173		)	(3,289		)	—			(3,289		)
Ending balance	$	81,191		$	134,597		$	39,292		$	9,520		$	264,600		$	359		$	264,959




($ in thousands)	Year Ended December 31, 2014
	Non-PCI Loans															PCI Loans			Total
	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	70,154		$	115,184		$	50,716		$	11,352		$	247,406		$	2,269		$	249,675
Provision for (reversal of) loan losses	3,264			49,200			(8,167		)	4,318			48,615			(1,032		)	47,583
Charge-offs	(3,137		)	(39,984		)	(1,103		)	(5,871		)	(50,095		)	(523		)	(50,618		)
Recoveries	1,982			10,198			2,410			449			15,039			—			15,039
Net (charge-offs) recoveries	(1,155		)	(29,786		)	1,307			(5,422		)	(35,056		)	(523		)	(35,579		)
Ending balance	$	72,263		$	134,598		$	43,856		$	10,248		$	260,965		$	714		$	261,679

The following table presents a summary of activities in the allowance for unfunded credit reserves during the years ended December 31, 2016, 2015 and 2014:




($ in thousands)	Year Ended December 31,
($ in thousands)	2016			2015		2014
Beginning balance	$	20,360		$	12,712	$	11,282
(Reversal of) provision for unfunded credit reserves	(4,239		)	7,648		1,575
Charge-offs	—			—		(145		)
Ending balance	$	16,121		$	20,360	$	12,712

Allowance for loan losses and recorded investments by portfolio segment and impairment methodology

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




($ in thousands)	December 31, 2016
($ in thousands)	CRE		C&I		Residential		Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	1,326	$	10,477	$	867	$	31	$	12,701
Collectively evaluated for impairment	71,478		131,689		36,466		8,068		247,701
Acquired with deteriorated credit quality	112		1		5		—		118
Ending balance	$	72,916	$	142,167	$	37,338	$	8,099	$	260,520

Recorded investment in loans
Individually evaluated for impairment	$	52,378	$	125,619	$	24,376	$	3,682	$	206,055
Collectively evaluated for impairment	8,288,119		9,476,557		4,836,578		2,053,385		24,654,639
Acquired with deteriorated credit quality ⁽¹⁾	350,366		38,387		234,764		18,928		642,445
Ending balance ⁽¹⁾	$	8,690,863	$	9,640,563	$	5,095,718	$	2,075,995	$	25,503,139




($ in thousands)	December 31, 2015
($ in thousands)	CRE		C&I		Residential		Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	3,316	$	16,100	$	923	$	60	$	20,399
Collectively evaluated for impairment	77,875		118,497		38,369		9,460		244,201
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	$	41,575	$	82,088	$	38,793	$	1,242	$	163,698
Collectively evaluated for impairment	7,509,132		8,850,231		4,217,633		1,932,300		22,509,296
Acquired with deteriorated credit quality ⁽¹⁾	549,365		59,216		337,910		24,263		970,754
Ending balance ⁽¹⁾	$	8,100,072	$	8,991,535	$	4,594,336	$	1,957,805	$	23,643,748


(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 years ended December 31, 2016, 2015 and 2014:




($ in thousands)	Year Ended December 31,
($ in thousands)	2016			2015			2014
Beginning balance	$	214,907		$	311,688		$	461,545
Addition	—			—			6,745
Accretion	(68,708		)	(107,442		)	(219,169		)
Changes in expected cash flows	(9,952		)	10,661			62,567
Ending balance	$	136,247		$	214,907		$	311,688