Loans Receivable and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2017

Loans and Leases Receivable Disclosure [Abstract]

Schedule of 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, 2017 and December 31, 2016:




($ in thousands)	March 31, 2017									December 31, 2016
($ 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	$	7,964,224		$	337,874		$	8,302,098		$	7,667,661		$	348,448		$	8,016,109
Construction	562,560			—			562,560			551,560			—			551,560
Land	120,885			1,347			122,232			121,276			1,918			123,194
Total CRE	8,647,669			339,221			8,986,890			8,340,497			350,366			8,690,863
C&I:
Commercial business	9,176,747			32,110			9,208,857			8,921,246			38,387			8,959,633
Trade finance	709,215			—			709,215			680,930			—			680,930
Total C&I	9,885,962			32,110			9,918,072			9,602,176			38,387			9,640,563
Residential:
Single-family	3,566,739			133,333			3,700,072			3,370,669			139,110			3,509,779
Multifamily	1,643,167			89,528			1,732,695			1,490,285			95,654			1,585,939
Total residential	5,209,906			222,861			5,432,767			4,860,954			234,764			5,095,718
Consumer	2,106,091			17,472			2,123,563			2,057,067			18,928			2,075,995
Total loans held-for-investment	$	25,849,628		$	611,664		$	26,461,292		$	24,860,694		$	642,445		$	25,503,139
Allowance for loan losses	(263,007		)	(87		)	(263,094		)	(260,402		)	(118		)	(260,520		)
Loans held-for-investment, net	$	25,586,621		$	611,577		$	26,198,198		$	24,600,292		$	642,327		$	25,242,619


(1)	Includes $(4.7) million and $1.2 million as of March 31, 2017 and December 31, 2016, respectively, of net deferred loan fees, 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 March 31, 2017 and December 31, 2016:




	March 31, 2017
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non-PCI Loans
CRE:
Income producing	$	7,800,487	$	23,362	$	140,375	$	—	$	—	$	7,964,224
Construction	530,278		32,282		—		—		—		562,560
Land	109,013		—		11,872		—		—		120,885
C&I:
Commercial business	8,827,318		139,251		185,249		24,929		—		9,176,747
Trade finance	677,654		3,566		27,995		—		—		709,215
Residential:
Single-family	3,533,047		8,693		24,999		—		—		3,566,739
Multifamily	1,619,193		1,284		22,690		—		—		1,643,167
Consumer	2,087,485		6,907		11,699		—		—		2,106,091
Total	$	25,184,475	$	215,345	$	424,879	$	24,929	$	—	$	25,849,628




	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

The following tables present the credit risk rating for PCI loans by portfolio segment as of March 31, 2017 and December 31, 2016:




	March 31, 2017
($ in thousands)	Pass/Watch		Special Mention		Substandard		Total PCI Loans
CRE:
Income producing	$	282,099	$	573	$	55,202	$	337,874
Land	1,012		—		335		1,347
C&I:
Commercial business	27,884		680		3,546		32,110
Residential:
Single-family	130,031		1,522		1,780		133,333
Multifamily	80,510		—		9,018		89,528
Consumer	15,559		374		1,539		17,472
Total ⁽¹⁾	$	537,095	$	3,149	$	71,420	$	611,664




	December 31, 2016
($ in thousands)	Pass/Watch		Special Mention		Substandard		Total PCI Loans
CRE:
Income producing	$	293,529	$	3,239	$	51,680	$	348,448
Land	1,562		—		356		1,918
C&I:
Commercial business	33,885		772		3,730		38,387
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


(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, 2017 and December 31, 2016:




	March 31, 2017
($ 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	$	3,132	$	—	$	3,132	$	11,596	$	22,120	$	33,716	$	7,927,376	$	7,964,224
Construction	—		—		—		—		—		—		562,560		562,560
Land	—		—		—		47		4,453		4,500		116,385		120,885
C&I:
Commercial business	8,478		5		8,483		47,238		44,855		92,093		9,076,171		9,176,747
Trade finance	—		—		—		—		—		—		709,215		709,215
Residential:
Single-family	2,211		5,246		7,457		—		5,643		5,643		3,553,639		3,566,739
Multifamily	4,801		904		5,705		1,030		1,192		2,222		1,635,240		1,643,167
Consumer	3,352		444		3,796		156		2,825		2,981		2,099,314		2,106,091
Total	$	21,974	$	6,599	$	28,573	$	60,067	$	81,088	$	141,155	$	25,679,900	$	25,849,628




	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

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

The following table presents the additions to non-PCI TDRs for the three months ended March 31, 2017 and 2016:




	Loans Modified as TDRs During the Three Months Ended March 31,
($ in thousands)	2017							2016
($ in thousands)	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
CRE:
Income producing	1	$	1,526	$	1,505	$	—	2	$	13,775	$	13,758	$	—
Land	2	$	86	$	—	$	—	—	$	—	$	—	$	—
C&I:
Commercial business	2	$	6,448	$	4,914	$	1,273	4	$	21,614	$	18,577	$	97
Trade finance	—	$	—	$	—	$	—	2	$	7,901	$	8,082	$	—
Residential:
Single-family	—	$	—	$	—	$	—	1	$	276	$	272	$	—
Consumer	—	$	—	$	—	$	—	1	$	344	$	345	$	1


(1)	Includes subsequent payments after modification and reflects the balance as of March 31, 2017 and 2016.


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

The following table presents the non-PCI TDR modifications for the three months ended March 31, 2017 and 2016 by modification type:




($ in thousands)	Modification Type During the Three Month Ended March 31,
	2017										2016
	Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Interest Rate Reduction		Other		Total		Principal⁽¹⁾		Principal and Interest ⁽²⁾		Interest Rate Reduction		Other		Total
CRE	$	1,505	$	—	$	—	$	—	$	1,505	$	13,730	$	—	$	—	$	28	$	13,758
C&I	—		4,914		—		—		4,914		19,112		—		3,615		3,932		26,659
Residential	—		—		—		—		—		272		—		—		—		272
Consumer	—		—		—		—		—		345		—		—		—		345
Total	$	1,505	$	4,914	$	—	$	—	$	6,419	$	33,459	$	—	$	3,615	$	3,960	$	41,034


(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.

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, 2017 and 2016, and were still in default at the respective period end:




	Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31,
	2017			2016
($ in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
C&I:
Commercial business	1	$	2,718	4	$	966

Summary of non-PCI impaired loans

The following tables present information on the non-PCI impaired loans as of March 31, 2017 and December 31, 2016:




	March 31, 2017
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
CRE:
Income producing	$	48,832	$	34,984	$	9,528	$	44,512	$	1,159
Land	5,050		4,453		47		4,500		6
C&I:
Commercial business	182,965		101,963		34,031		135,994		6,218
Trade finance	3,449		3,438		—		3,438		—
Residential:
Single-family	16,132		1,864		13,172		15,036		611
Multifamily	10,132		5,649		3,575		9,224		121
Consumer	4,897		670		3,855		4,525		32
Total	$	271,457	$	153,021	$	64,208	$	217,229	$	8,147




	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

Schedule of average recorded investment and interest income recognized 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, 2017 and 2016:




($ in thousands)	Three Months Ended March 31,
	2017				2016
	Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾
CRE:
Income producing	$	44,772	$	35	$	71,767	$	391
Land	4,717		—		6,952		9
C&I:
Commercial business	138,931		214		94,505		369
Trade finance	4,283		7		13,737		66
Residential:
Single-family	15,096		22		18,356		65
Multifamily	9,269		38		22,345		77
Consumer	4,533		12		1,638		16
Total non-PCI impaired loans	$	221,601	$	328	$	229,300	$	993


(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 activities 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 three months ended March 31, 2017 and 2016:




	Three Months Ended March 31, 2017
($ in thousands)	Non-PCI Loans														PCI Loans
($ in thousands)	CRE			C&I			Residential		Consumer			Total			PCI Loans			Total
Beginning balance	$	72,804		$	142,166		$	37,333	$	8,099		$	260,402		$	118		$	260,520
Provision for (reversal of) loan losses	1,639			1,946			3,835		626			8,046			(31		)	8,015
Charge-offs	(148		)	(7,057		)	—		(4		)	(7,209		)	—			(7,209		)
Recoveries	593			455			578		142			1,768			—			1,768
Net recoveries (charge-offs)	445			(6,602		)	578		138			(5,441		)	—			(5,441		)
Ending balance	$	74,888		$	137,510		$	41,746	$	8,863		$	263,007		$	87		$	263,094




	Three Months Ended March 31, 2016
($ in thousands)	Non-PCI Loans															PCI Loans			Total
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
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

The following table presents a summary of activities in the allowance for unfunded credit reserves during the three months ended March 31, 2017 and 2016:




($ in thousands)	Three Months Ended March 31,
($ in thousands)	2017			2016
Beginning balance	$	16,121		$	20,360
(Reversal of) provision for unfunded credit reserves	(947		)	1,054
Ending balance	$	15,174		$	21,414

Summary of 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 March 31, 2017 and December 31, 2016:




	March 31, 2017
($ in thousands)	CRE		C&I		Residential		Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	1,165	$	6,218	$	732	$	32	$	8,147
Collectively evaluated for impairment	73,723		131,292		41,014		8,831		254,860
Acquired with deteriorated credit quality	86		—		1		—		87
Ending balance	$	74,974	$	137,510	$	41,747	$	8,863	$	263,094

Recorded investment in loans
Individually evaluated for impairment	$	49,012	$	139,432	$	24,260	$	4,525	$	217,229
Collectively evaluated for impairment	8,598,657		9,746,530		5,185,646		2,101,566		25,632,399
Acquired with deteriorated credit quality ⁽¹⁾	339,221		32,110		222,861		17,472		611,664
Ending balance ⁽¹⁾	$	8,986,890	$	9,918,072	$	5,432,767	$	2,123,563	$	26,461,292




	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


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

Summary of changes in accretable yield for PCI loans

The following table presents the changes in accretable yield for PCI loans for the three months ended March 31, 2017 and 2016:




($ in thousands)	Three Months Ended March 31,
($ in thousands)	2017			2016
Beginning balance	$	136,247		$	214,907
Accretion	(10,279		)	(22,429		)
Changes in expected cash flows	2,022			(6,487		)
Ending balance	$	127,990		$	185,991