COVERED ASSETS AND FDIC INDEMNIFICATION ASSET (Tables)

6 Months Ended

Jun. 30, 2012

COVERED ASSETS AND FDIC INDEMNIFICATION ASSET

Carrying amounts and composition of covered loans

	June 30,			December 31,
	2012			2011
	(In thousands)
Real estate loans:
Residential single-family	$	402,001		$	442,732
Residential multifamily	806,371			918,941
Commercial and industrial real estate	1,568,191			1,773,760
Construction and land	525,152			653,045
Total real estate loans	3,301,715			3,788,478
Other loans:
Commercial business	674,362			831,762
Other consumer	93,082			97,844
Total other loans	767,444			929,606
Total principal balance	4,069,159			4,718,084
Covered discount	(645,373		)	(788,295		)
Net valuation of loans	3,423,786			3,929,789
Allowance on covered loans	(7,173		)	(6,647		)
Total covered loans, net	$	3,416,613		$	3,923,142

Covered nonperforming assets, by credit quality indicators

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
					(In thousands)
June 30, 2012
Real estate loans:
Residential single-family	$	385,358	$	2,530	$	14,113	$	—	$	402,001
Residential multifamily	705,861		12,816		87,694		—		806,371
Commercial and industrial real estate	1,107,430		14,988		438,788		6,985		1,568,191
Construction and land	223,214		39,579		259,703		2,656		525,152
Total real estate loans	2,421,863		69,913		800,298		9,641		3,301,715
Other loans:
Commercial business	477,449		32,885		162,854		1,174		674,362
Other consumer	90,556		—		2,526		—		93,082
Total other loans	568,005		32,885		165,380		1,174		767,444
Total principal balance	$	2,989,868	$	102,798	$	965,678	$	10,815	$	4,069,159

			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

	June 30,		December 31,
	2012		2011
	(In thousands)
Covered nonaccrual loans(1) (2)	$	202,455	$	194,506
Covered loans past due 90 days or more but not on nonaccrual	—		—
Total nonperforming loans	202,455		194,506
Other real estate owned covered, net	35,577		63,624
Total covered nonperforming assets	$	238,032	$	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
	June 30,
	2012			2011
	(In thousands)
Balance at beginning of period	$	696,666		$	1,068,116
Additions	—			—
Accretion	(55,030		)	(52,760		)
Changes in expected cash flows	(21,168		)	(34,424		)
Balance at end of period	$	620,468		$	980,932

	Six Months Ended
	June 30,
	2012			2011
	(In thousands)
Balance at beginning of period	$	785,165		$	1,153,272
Additions	—			—
Accretion	(80,636		)	(111,440		)
Changes in expected cash flows	(84,061		)	(60,900		)
Balance at end of period	$	620,468		$	980,932

FDIC indemnification asset activity

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
	(In thousands)						(In thousands)
Balance at beginning of period	$	457,265		$	717,260		$	511,135		$	792,133
(Amortization)	(7,787		)	(15,432		)	(17,858		)	(33,709		)
Reductions (1)	(36,050		)	(64,293		)	(77,018		)	(120,889		)
Estimate of FDIC repayment (2)	(4,141		)	—			(6,972		)	—
Balance at end of period	$	409,287		$	637,535		$	409,287		$	637,535

(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.