Loans Receivable and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016:




($ in thousands)	September 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	$	8,530,519		$	313,257		$	8,843,776		$	7,667,661		$	348,448		$	8,016,109
Construction	572,027			—			572,027			551,560			—			551,560
Land	111,006			371			111,377			121,276			1,918			123,194
Total CRE	9,213,552			313,628			9,527,180			8,340,497			350,366			8,690,863
C&I:
Commercial business	9,763,688			12,566			9,776,254			8,921,246			38,387			8,959,633
Trade finance	868,902			—			868,902			680,930			—			680,930
Total C&I	10,632,590			12,566			10,645,156			9,602,176			38,387			9,640,563
Residential:
Single-family	4,234,017			121,992			4,356,009			3,370,669			139,110			3,509,779
Multifamily	1,808,311			68,645			1,876,956			1,490,285			95,654			1,585,939
Total residential	6,042,328			190,637			6,232,965			4,860,954			234,764			5,095,718
Consumer	2,104,614			15,442			2,120,056			2,057,067			18,928			2,075,995
Total loans held-for-investment	$	27,993,084		$	532,273		$	28,525,357		$	24,860,694		$	642,445		$	25,503,139
Allowance for loan losses	(285,858		)	(68		)	(285,926		)	(260,402		)	(118		)	(260,520		)
Loans held-for-investment, net	$	27,707,226		$	532,205		$	28,239,431		$	24,600,292		$	642,327		$	25,242,619


(1)	Includes $(29.2) million and $1.2 million as of September 30, 2017 and December 31, 2016, respectively, of net deferred loan fees, unearned income, 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 September 30, 2017 and December 31, 2016:




($ in thousands)	September 30, 2017
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non-PCI Loans
CRE:
Income producing	$	8,341,970	$	74,028	$	114,521	$	—	$	—	$	8,530,519
Construction	540,851		22,176		9,000		—		—		572,027
Land	96,160		—		14,846		—		—		111,006
C&I:
Commercial business	9,447,163		142,531		152,975		21,019		—		9,763,688
Trade finance	830,268		18,631		20,003		—		—		868,902
Residential:
Single-family	4,199,554		11,501		22,962		—		—		4,234,017
Multifamily	1,789,351		—		18,960		—		—		1,808,311
Consumer	2,080,056		9,683		14,875		—		—		2,104,614
Total	$	27,325,373	$	278,550	$	368,142	$	21,019	$	—	$	27,993,084




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




($ in thousands)	September 30, 2017
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total PCI Loans
CRE:
Income producing	$	261,907	$	—	$	51,350	$	—	$	—	$	313,257
Land	44		—		327		—		—		371
C&I:
Commercial business	11,205		90		1,271		—		—		12,566
Residential:
Single-family	118,281		1,769		1,942		—		—		121,992
Multifamily	64,455		—		4,190		—		—		68,645
Consumer	13,962		364		1,116		—		—		15,442
Total ⁽¹⁾	$	469,854	$	2,223	$	60,196	$	—	$	—	$	532,273




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




($ in thousands)	September 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	$	5,211	$	1,924	$	7,135	$	4,853	$	19,949	$	24,802	$	8,498,582	$	8,530,519
Construction	9,000		—		9,000		—		—		—		563,027		572,027
Land	—		—		—		10		4,173		4,183		106,823		111,006
C&I:
Commercial business	16,315		108		16,423		34,844		38,540		73,384		9,673,881		9,763,688
Trade finance	—		—		—		—		—		—		868,902		868,902
Residential:
Single-family	16,765		1,560		18,325		—		6,639		6,639		4,209,053		4,234,017
Multifamily	7,476		664		8,140		1,456		1,164		2,620		1,797,551		1,808,311
Consumer	8,837		5,346		14,183		93		3,004		3,097		2,087,334		2,104,614
Total	$	63,604	$	9,602	$	73,206	$	41,256	$	73,469	$	114,725	$	27,805,153	$	27,993,084




($ 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 information for loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three and nine months ended September 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 September 30,
	2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
CRE:
Income producing	—	$	—	1	$	1,000
C&I:
Commercial business	1	$	9,386	—	$	—




($ in thousands)	Loans Modified as TDRs that Subsequently Defaulted During the Nine Months Ended September 30,
	2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
CRE:
Income producing	—	$	—	1	$	1,000
C&I:
Commercial business	1	$	9,386	2	$	119
Consumer	1	$	48	—	$	—

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




	Loans Modified as TDRs During the Three Months Ended September 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	$	172	$	172	$	8	—	$	—	$	—	$	—
C&I:
Commercial business	10	$	15,143	$	14,927	$	65	3	$	493	$	475	$	93




	Loans Modified as TDRs During the Nine Months Ended September 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	$	1,699	$	1,648	$	8	3	$	15,899	$	15,730	$	43
Land	—	$	—	$	—	$	—	1	$	5,522	$	5,233	$	—
C&I:
Commercial business	15	$	29,541	$	28,796	$	10,365	8	$	22,182	$	9,113	$	2,711
Trade finance	—	$	—	$	—	$	—	2	$	7,901	$	3,025	$	—
Residential:
Single-family	—	$	—	$	—	$	—	2	$	1,071	$	1,065	$	—
Multifamily	1	$	3,655	$	3,620	$	112	—	$	—	$	—	$	—
Consumer	—	$	—	$	—	$	—	1	$	344	$	337	$	1


(1)	Includes subsequent payments after modification and reflects the balance as of September 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 nine months ended September 30, 2017 and 2016 by modification type:




($ in thousands)	Modification Type During the Three Months Ended September 30, 2017
($ in thousands)	Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
CRE	$	172	$	—	$	—	$	—	$	—	$	172
C&I	14,903		24		—		—		—		14,927
Total	$	15,075	$	24	$	—	$	—	$	—	$	15,099




($ in thousands)	Modification Type During the Three Months Ended September 30, 2016
($ in thousands)	Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
C&I	$	444	$	—	$	—	$	31	$	—	$	475
Total	$	444	$	—	$	—	$	31	$	—	$	475




($ in thousands)	Modification Type During the Nine Months Ended September 30, 2017
($ in thousands)	Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
CRE	$	1,648	$	—	$	—	$	—	$	—	$	1,648
C&I	18,289		10,507		—		—		—		28,796
Residential	3,620		—		—		—		—		3,620
Total	$	23,557	$	10,507	$	—	$	—	$	—	$	34,064




($ in thousands)	Modification Type During the Nine Months Ended September 30, 2016
($ in thousands)	Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
CRE	$	19,812	$	—	$	—	$	—	$	1,151	$	20,963
C&I	10,218		—		1,288		32		600		12,138
Residential	266		—		799		—		—		1,065
Consumer	337		—		—		—		—		337
Total	$	30,633	$	—	$	2,087	$	32	$	1,751	$	34,503


(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 the non-PCI impaired loans as of September 30, 2017 and December 31, 2016:




($ in thousands)	September 30, 2017
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
CRE:
Income producing	$	35,133	$	28,908	$	6,241	$	35,149	$	1,011
Land	4,183		4,173		10		4,183		1
C&I:
Commercial business	89,233		50,700		38,392		89,092		18,183
Trade finance	4,786		—		4,708		4,708		786
Residential:
Single-family	15,868		1,867		14,032		15,899		572
Multifamily	12,224		6,062		6,170		12,232		194
Consumer	4,298		1,303		2,998		4,301		4
Total	$	165,725	$	93,013	$	72,551	$	165,564	$	20,751




($ 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 nine months ended September 30, 2017 and 2016:




($ in thousands)	Three Months Ended September 30,								Nine Months Ended September 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	$	37,489	$	179	$	52,116	$	464	$	37,238	$	535	$	52,221	$	1,368
Land	4,337		—		6,622		9		4,484		—		6,777		26
C&I:
Commercial business	93,278		242		91,290		258		94,709		799		92,805		648
Trade finance	4,216		53		9,005		33		4,444		122		10,028		166
Residential:
Single-family	16,124		111		13,438		72		16,141		325		13,517		220
Multifamily	12,532		108		20,585		77		12,540		324		20,646		231
Consumer	4,492		14		1,571		16		4,455		41		1,575		48
Total non-PCI impaired loans	$	172,468	$	707	$	194,627	$	929	$	174,011	$	2,146	$	197,569	$	2,707


(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 table presents a summary of activities in the allowance for unfunded credit reserves for the three and nine months ended September 30, 2017 and 2016:




($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2017			2016			2017			2016
Beginning balance	$	15,188		$	20,318		$	16,121		$	20,360
Reversal of unfunded credit reserves	(452		)	(1,989		)	(1,385		)	(2,031		)
Ending balance	$	14,736		$	18,329		$	14,736		$	18,329

The following tables present a summary of activities in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2017 and 2016:




($ in thousands)	Three Months Ended September 30, 2017
	Non-PCI Loans															PCI Loans			Total
	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	73,985		$	150,136		$	43,679		$	8,438		$	276,238		$	78		$	276,316
(Reversal of) provision for loan losses	(346		)	15,656			(583		)	(1,269		)	13,458			(10		)	13,448
Charge-offs	—			(7,359		)	—			(65		)	(7,424		)	—			(7,424		)
Recoveries	610			2,165			809			2			3,586			—			3,586
Net recoveries (charge-offs)	610			(5,194		)	809			(63		)	(3,838		)	—			(3,838		)
Ending balance	$	74,249		$	160,598		$	43,905		$	7,106		$	285,858		$	68		$	285,926




($ in thousands)	Three Months Ended September 30, 2016
	Non-PCI Loans															PCI Loans			Total
	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	78,102		$	148,427		$	31,561		$	8,421		$	266,511		$	257		$	266,768
(Reversal of) provision for loan losses	(6,598		)	18,548			309			(644		)	11,615			(101		)	11,514
Charge-offs	(309		)	(23,696		)	(29		)	(13		)	(24,047		)	—			(24,047		)
Recoveries	634			165			654			124			1,577			—			1,577
Net recoveries (charge-offs)	325			(23,531		)	625			111			(22,470		)	—			(22,470		)
Ending balance	$	71,829		$	143,444		$	32,495		$	7,888		$	255,656		$	156		$	255,812




($ in thousands)	Nine Months Ended September 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
(Reversal of) provision for loan losses	(120		)	28,576			4,815			(1,087		)	32,184			(50		)	32,134
Charge-offs	(149		)	(19,802		)	(1		)	(72		)	(20,024		)	—			(20,024		)
Recoveries	1,714			9,658			1,758			166			13,296			—			13,296
Net recoveries (charge-offs)	1,565			(10,144		)	1,757			94			(6,728		)	—			(6,728		)
Ending balance	$	74,249		$	160,598		$	43,905		$	7,106		$	285,858		$	68		$	285,926




($ in thousands)	Nine Months Ended September 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	(9,731		)	38,549			(7,679		)	(1,887		)	19,252			(203		)	19,049
Charge-offs	(504		)	(31,770		)	(166		)	(17		)	(32,457		)	—			(32,457		)
Recoveries	873			2,068			1,048			272			4,261			—			4,261
Net recoveries (charge-offs)	369			(29,702		)	882			255			(28,196		)	—			(28,196		)
Ending balance	$	71,829		$	143,444		$	32,495		$	7,888		$	255,656		$	156		$	255,812

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 September 30, 2017 and December 31, 2016:




($ in thousands)	September 30, 2017
($ in thousands)	CRE		C&I		Residential		Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	1,012	$	18,969	$	766	$	4	$	20,751
Collectively evaluated for impairment	73,237		141,629		43,139		7,102		265,107
Acquired with deteriorated credit quality	68		—		—		—		68
Ending balance	$	74,317	$	160,598	$	43,905	$	7,106	$	285,926

Recorded investment in loans
Individually evaluated for impairment	$	39,332	$	93,800	$	28,131	$	4,301	$	165,564
Collectively evaluated for impairment	9,174,220		10,538,790		6,014,197		2,100,313		27,827,520
Acquired with deteriorated credit quality ⁽¹⁾	313,628		12,566		190,637		15,442		532,273
Ending balance ⁽¹⁾	$	9,527,180	$	10,645,156	$	6,232,965	$	2,120,056	$	28,525,357




($ 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 nine months ended September 30, 2017 and 2016:




($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2017			2016			2017			2016
Beginning balance	$	118,625		$	166,777		$	136,247		$	214,907
Accretion	(10,747		)	(14,827		)	(32,108		)	(53,510		)
Changes in expected cash flows	2,078			311			5,817			(9,136		)
Ending balance	$	109,956		$	152,261		$	109,956		$	152,261