Loans Receivable and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2017 and December 31, 2016:




($ in thousands)	June 30, 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	$	8,141,483		$	323,547		$	8,465,030		$	7,667,661		$	348,448		$	8,016,109
Construction	550,781			—			550,781			551,560			—			551,560
Land	108,795			1,243			110,038			121,276			1,918			123,194
Total CRE	8,801,059			324,790			9,125,849			8,340,497			350,366			8,690,863
C&I:
Commercial business	9,403,575			20,661			9,424,236			8,921,246			38,387			8,959,633
Trade finance	763,113			—			763,113			680,930			—			680,930
Total C&I	10,166,688			20,661			10,187,349			9,602,176			38,387			9,640,563
Residential:
Single-family	3,873,803			127,685			4,001,488			3,370,669			139,110			3,509,779
Multifamily	1,696,978			75,763			1,772,741			1,490,285			95,654			1,585,939
Total residential	5,570,781			203,448			5,774,229			4,860,954			234,764			5,095,718
Consumer	2,106,683			16,556			2,123,239			2,057,067			18,928			2,075,995
Total loans held-for-investment	$	26,645,211		$	565,455		$	27,210,666		$	24,860,694		$	642,445		$	25,503,139
Allowance for loan losses	(276,238		)	(78		)	(276,316		)	(260,402		)	(118		)	(260,520		)
Loans held-for-investment, net	$	26,368,973		$	565,377		$	26,934,350		$	24,600,292		$	642,327		$	25,242,619


(1)	Includes $(9.6) million and $1.2 million as of June 30, 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 ratings for non-PCI loans by portfolio segment as of June 30, 2017 and December 31, 2016:




($ in thousands)	June 30, 2017
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non-PCI Loans
CRE:
Income producing	$	8,003,443	$	18,859	$	119,181	$	—	$	—	$	8,141,483
Construction	521,240		20,548		8,993		—		—		550,781
Land	93,691		—		15,104		—		—		108,795
C&I:
Commercial business	9,049,939		160,656		168,139		24,841		—		9,403,575
Trade finance	728,700		21,176		13,237		—		—		763,113
Residential:
Single-family	3,838,847		10,216		24,740		—		—		3,873,803
Multifamily	1,676,251		—		20,727		—		—		1,696,978
Consumer	2,085,524		6,230		14,929		—		—		2,106,683
Total	$	25,997,635	$	237,685	$	385,050	$	24,841	$	—	$	26,645,211




($ 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

The following tables present the credit risk ratings for PCI loans by portfolio segment as of June 30, 2017 and December 31, 2016:




($ in thousands)	June 30, 2017
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total PCI Loans
CRE:
Income producing	$	272,926	$	472	$	50,149	$	—	$	—	$	323,547
Land	914		—		329		—		—		1,243
C&I:
Commercial business	17,312		585		2,764		—		—		20,661
Residential:
Single-family	124,216		1,506		1,963		—		—		127,685
Multifamily	69,657		—		6,106		—		—		75,763
Consumer	14,937		369		1,250		—		—		16,556
Total ⁽¹⁾	$	499,962	$	2,932	$	62,561	$	—	$	—	$	565,455




($ 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
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 June 30, 2017 and December 31, 2016:




($ in thousands)	June 30, 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	$	4,192	$	1,285	$	5,477	$	5,438	$	20,537	$	25,975	$	8,110,031	$	8,141,483
Construction	—		—		—		—		—		—		550,781		550,781
Land	1,103		—		1,103		21		4,323		4,344		103,348		108,795
C&I:
Commercial business	2,976		9,126		12,102		49,899		37,290		87,189		9,304,284		9,403,575
Trade finance	—		—		—		—		—		—		763,113		763,113
Residential:
Single-family	4,581		3,367		7,948		—		7,624		7,624		3,858,231		3,873,803
Multifamily	3,611		368		3,979		966		1,712		2,678		1,690,321		1,696,978
Consumer	3,747		2,333		6,080		101		2,895		2,996		2,097,607		2,106,683
Total	$	20,210	$	16,479	$	36,689	$	56,425	$	74,381	$	130,806	$	26,477,716	$	26,645,211




($ 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

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

The following tables present the additions to non-PCI TDRs for the three and six months ended June 30, 2017 and 2016:




	Loans Modified as TDRs During the Three Months Ended June 30,
($ 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	—	$	—	$	—	$	—	2	$	2,152	$	2,157	$	43
Land	—	$	—	$	—	$	—	1	$	5,522	$	5,279	$	—
C&I:
Commercial business	6	$	17,039	$	15,673	$	10,010	1	$	75	$	81	$	12
Residential:
Single-family	—	$	—	$	—	$	—	1	$	795	$	803	$	—
Multifamily	1	$	3,655	$	3,638	$	107	—	$	—	$	—	$	—




	Loans Modified as TDRs During the Six Months Ended June 30,
($ 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	$	1,527	$	1,494	$	—	3	$	15,899	$	15,811	$	43
Land	—	$	—	$	—	$	—	1	$	5,522	$	5,279	$	—
C&I:
Commercial business	8	$	18,189	$	17,272	$	11,202	5	$	21,689	$	15,810	$	2,618
Trade finance	—	$	—	$	—	$	—	2	$	7,901	$	9,256	$	—
Residential:
Single-family	—	$	—	$	—	$	—	2	$	1,071	$	1,071	$	—
Multifamily	1	$	3,655	$	3,638	$	106	—	$	—	$	—	$	—
Consumer	—	$	—	$	—	$	—	1	$	344	$	340	$	1


(1)	Includes subsequent payments after modification and reflects the balance as of June 30, 2017 and 2016.


(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 three and six months ended June 30, 2017 and 2016 by modification type:




($ in thousands)	Modification Type During the Three Months Ended June 30,
	2017								2016
	Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Other		Total		Principal⁽¹⁾		Principal and Interest ⁽²⁾		Other		Total
CRE	$	—	$	—	$	—	$	—	$	6,279	$	—	$	1,157	$	7,436
C&I	3,388		12,285		—		15,673		81		—		—		81
Residential	3,638		—		—		3,638		—		803		—		803
Consumer	—		—		—		—		—		—		—		—
Total	$	7,026	$	12,285	$	—	$	19,311	$	6,360	$	803	$	1,157	$	8,320




($ in thousands)	Modification Type During the Six Months Ended June 30,
	2017								2016
	Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Other		Total		Principal⁽¹⁾		Principal and Interest ⁽²⁾		Other		Total
CRE	$	1,494	$	—	$	—	$	1,494	$	19,932	$	—	$	1,158	$	21,090
C&I	3,388		13,884		—		17,272		18,559		1,986		4,521		25,066
Residential	3,638		—		—		3,638		268		803		—		1,071
Consumer	—		—		—		—		340		—		—		340
Total	$	8,520	$	13,884	$	—	$	22,404	$	39,099	$	2,789	$	5,679	$	47,567


(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 tables present information for loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three and six months ended June 30, 2017 and 2016, and were still in default at the respective period end:




($ in thousands)	Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended June 30,
	2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Consumer	1	$	48	—	$	—




($ in thousands)	Loans Modified as TDRs that Subsequently Defaulted During the Six Months Ended June 30,
	2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
C&I:
Commercial business	—	$	—	3	$	575
Consumer	1	$	48	—	$	—

Summary of non-PCI impaired loans

The following tables present information on the non-PCI impaired loans as of June 30, 2017 and December 31, 2016:




($ in thousands)	June 30, 2017
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
CRE:
Income producing	$	37,672	$	33,059	$	4,598	$	37,657	$	702
Land	4,344		4,323		21		4,344		3
C&I:
Commercial business	106,076		69,274		36,779		106,053		15,580
Trade finance	4,615		—		4,538		4,538		305
Residential:
Single-family	16,956		4,161		12,788		16,949		492
Multifamily	12,657		6,135		6,531		12,666		206
Consumer	4,528		1,308		3,225		4,533		5
Total	$	186,848	$	118,260	$	68,480	$	186,740	$	17,293




($ 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

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 for the three and six months ended June 30, 2017 and 2016:




($ in thousands)	Three Months Ended June 30,								Six Months Ended June 30,
	2017				2016				2017				2016
	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	$	37,897	$	33	$	78,183	$	404	$	38,116	$	80	$	79,072	$	816
Land	4,414		—		6,747		8		4,584		—		6,912		17
C&I:
Commercial business	109,887		122		100,407		270		115,252		337		100,593		530
Trade finance	3,971		18		12,715		67		4,356		25		13,513		133
Residential:
Single-family	16,985		35		12,735		74		17,038		93		12,818		148
Multifamily	12,720		81		24,858		77		12,771		129		25,067		154
Consumer	4,541		13		1,585		16		4,548		32		1,589		31
Total non-PCI impaired loans	$	190,415	$	302	$	237,230	$	916	$	196,665	$	696	$	239,564	$	1,829


(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 and six months ended June 30, 2017 and 2016:




($ in thousands)	Three Months Ended June 30, 2017
	Non-PCI Loans															PCI Loans			Total
	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	74,888		$	137,510		$	41,746		$	8,863		$	263,007		$	87		$	263,094
(Reversal of) provision for loan losses	(1,413		)	10,974			1,563			(444		)	10,680			(9		)	10,671
Charge-offs	(1		)	(5,386		)	(1		)	(3		)	(5,391		)	—			(5,391		)
Recoveries	511			7,038			371			22			7,942			—			7,942
Net recoveries	510			1,652			370			19			2,551			—			2,551
Ending balance	$	73,985		$	150,136		$	43,679		$	8,438		$	276,238		$	78		$	276,316




($ in thousands)	Three Months Ended June 30, 2016
	Non-PCI Loans															PCI Loans			Total
	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	82,538		$	134,077		$	33,935		$	9,360		$	259,910		$	328		$	260,238
(Reversal of) provision for loan losses	(4,439		)	15,347			(2,671		)	(1,017		)	7,220			(71		)	7,149
Charge-offs	(139		)	(2,214		)	—			(3		)	(2,356		)	—			(2,356		)
Recoveries	142			1,217			297			81			1,737			—			1,737
Net recoveries (charge-offs)	3			(997		)	297			78			(619		)	—			(619		)
Ending balance	$	78,102		$	148,427		$	31,561		$	8,421		$	266,511		$	257		$	266,768




($ in thousands)	Six Months Ended June 30, 2017
	Non-PCI Loans															PCI Loans			Total
	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	226			12,920			5,398			182			18,726			(40		)	18,686
Charge-offs	(149		)	(12,443		)	(1		)	(7		)	(12,600		)	—			(12,600		)
Recoveries	1,104			7,493			949			164			9,710			—			9,710
Net recoveries (charge-offs)	955			(4,950		)	948			157			(2,890		)	—			(2,890		)
Ending balance	$	73,985		$	150,136		$	43,679		$	8,438		$	276,238		$	78		$	276,316




($ in thousands)	Six Months Ended June 30, 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	(3,133		)	20,001			(7,988		)	(1,243		)	7,637			(102		)	7,535
Charge-offs	(195		)	(8,074		)	(137		)	(4		)	(8,410		)	—			(8,410		)
Recoveries	239			1,903			394			148			2,684			—			2,684
Net recoveries (charge-offs)	44			(6,171		)	257			144			(5,726		)	—			(5,726		)
Ending balance	$	78,102		$	148,427		$	31,561		$	8,421		$	266,511		$	257		$	266,768

The following table presents a summary of activities in the allowance for unfunded credit reserves for the three and six months ended June 30, 2017 and 2016:




($ in thousands)	Three Months Ended June 30,					Six Months Ended June 30,
($ in thousands)	2017		2016			2017			2016
Beginning balance	$	15,174	$	21,414		$	16,121		$	20,360
Provision for (reversal of) unfunded credit reserves	14		(1,096		)	(933		)	(42		)
Ending balance	$	15,188	$	20,318		$	15,188		$	20,318

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 June 30, 2017 and December 31, 2016:




($ in thousands)	June 30, 2017
($ in thousands)	CRE		C&I		Residential		Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	705	$	15,885	$	698	$	5	$	17,293
Collectively evaluated for impairment	73,280		134,251		42,981		8,433		258,945
Acquired with deteriorated credit quality	78		—		—		—		78
Ending balance	$	74,063	$	150,136	$	43,679	$	8,438	$	276,316

Recorded investment in loans
Individually evaluated for impairment	$	42,001	$	110,591	$	29,615	$	4,533	$	186,740
Collectively evaluated for impairment	8,759,058		10,056,097		5,541,166		2,102,150		26,458,471
Acquired with deteriorated credit quality ⁽¹⁾	324,790		20,661		203,448		16,556		565,455
Ending balance ⁽¹⁾	$	9,125,849	$	10,187,349	$	5,774,229	$	2,123,239	$	27,210,666




($ 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


(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 and six months ended June 30, 2017 and 2016:




($ in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2017			2016			2017			2016
Beginning balance	$	127,990		$	185,991		$	136,247		$	214,907
Accretion	(11,082		)	(16,254		)	(21,361		)	(38,683		)
Changes in expected cash flows	1,717			(2,960		)	3,739			(9,447		)
Ending balance	$	118,625		$	166,777		$	118,625		$	166,777