COVERED ASSETS AND FDIC INDEMNIFICATION ASSET (Tables)

3 Months Ended

Mar. 31, 2012

COVERED ASSETS AND FDIC INDEMNIFICATION ASSET

Carrying amounts and composition of covered loans

	March 31,			December 31,
	2012			2011
	(In thousands)
Real estate loans:
Residential single-family	$	418,968		$	442,732
Residential multifamily	882,656			918,941
Commercial and industrial real estate	1,692,719			1,773,760
Construction and land	576,689			653,045
Total real estate loans	3,571,032			3,788,478
Other loans:
Commercial business	735,479			831,762
Other consumer	96,597			97,844
Total other loans	832,076			929,606
Total principal balance	4,403,108			4,718,084
Covered discount	(711,142		)	(788,295		)
Net valuation of loans	3,691,966			3,929,789
Allowance on covered loans	(8,268		)	(6,647		)
Total covered loans, net	$	3,683,698		$	3,923,142

Covered nonperforming assets, by credit quality indicators

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
March 31, 2012
Real estate loans:
Residential single-family	$	405,077	$	1,487	$	12,404	$	—	$	418,968
Residential multifamily	751,603		24,128		106,925		—		882,656
Commercial and industrial real estate	1,203,273		7,735		474,076		7,635		1,692,719
Construction and land	234,406		41,714		297,895		2,674		576,689
Total real estate loans	2,594,359		75,064		891,300		10,309		3,571,032
Other loans:
Commercial business	531,311		40,713		161,529		1,926		735,479
Other consumer	94,240		—		2,357		—		96,597
Total other loans	625,551		40,713		163,886		1,926		832,076
Total principal balance	$	3,219,910	$	115,777	$	1,055,186	$	12,235	$	4,403,108
			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
December 31, 2011
Real estate loans:
Residential single-family	$	427,918	$	1,085	$	13,729	$	—	$	442,732
Residential multifamily	779,694		26,124		113,123		—		918,941
Commercial and industrial real estate	1,249,781		43,810		472,003		8,166		1,773,760
Construction and land	242,996		40,859		362,958		6,232		653,045
Total real estate loans	2,700,389		111,878		961,813		14,398		3,788,478
Other loans:
Commercial business	643,117		34,707		149,253		4,685		831,762
Other consumer	96,342		—		1,502		—		97,844
Total other loans	739,459		34,707		150,755		4,685		929,606
Total principal balance	$	3,439,848	$	146,585	$	1,112,568	$	19,083	$	4,718,084

Covered nonperforming assets

	March 31,		December 31,
	2012		2011
	(In thousands)
Covered nonaccrual loans(1) (2)	$	193,088	$	194,506
Covered loans past due 90 days or more but not on nonaccrual	—		—
Total nonperforming loans	193,088		194,506
Other real estate owned covered, net	55,586		63,624
Total covered nonperforming assets	$	248,674	$	258,130

(1)Covered nonaccrual loans meet the criteria for nonaccrual but have a yield accreted through interest income under ASC 310-30.

(2)Represents principal balance net of discount.

Changes in the accretable yield for the covered loans

	Three Months Ended
	March 31,
	2012			2011
	(In thousands)
Balance at beginning of period	$	785,165		$	1,153,272
Additions	—			—
Accretion	(25,606		)	(58,680		)
Changes in expected cash flows	(62,893		)	(26,476		)
Balance at end of period	$	696,666		$	1,068,116

FDIC indemnification asset activity

	Three Months Ended
	March 31,
	2012			2011
	(In thousands)
Balance at beginning of period	$	511,135		$	792,133
(Amortization) Accretion	(10,071		)	(18,277		)
Reductions (1)	(40,968		)	(56,596		)
Estimate of FDIC repayment (2)	(2,831		)	—
Balance at end of period	$	457,265		$	717,260

(1)Reductions relate to cash flows received from principal amortization, partial prepayments, loan payoffs and loan sales.

(2)This represents the change in the calculated estimate the company will be required to pay the FDIC at the end of the FDIC loss share agreements, due to lower thresholds of losses.