NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2012

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Summary of loans receivable, excluding covered loans

	September 30,			December 31,
	2012			2011
	(In thousands)
Residential:
Single-family	$	2,065,622		$	1,796,635
Multifamily	911,781			933,168
Total residential	2,977,403			2,729,803
Commercial Real Estate (“CRE”):
Income producing	$	3,519,601		3,487,866
Construction	110,541			171,410
Land	140,331			173,089
Total CRE	3,770,473			3,832,365
Commercial and Industrial (“C&I”):
Commercial business	$	3,097,271		2,655,917
Trade finance	635,514			486,555
Total C&I	3,732,785			3,142,472
Consumer:
Student loans	$	406,019		306,325
Other consumer	268,528			277,461
Total consumer	674,547			583,786
Total gross loans receivable, excluding covered loans	11,155,208			10,288,426
Unearned fees, premiums, and discounts, net	$	(15,185	)	(16,762		)
Allowance for loan losses, excluding covered loans	(223,637		)	(209,876		)
Loans receivable, excluding covered loans, net	$	10,916,386		$	10,061,788

Summary of non-covered loans by credit quality

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
					(In thousands)
September 30, 2012
Residential:
Single-family	$	2,032,738	$	13,400	$	19,484	$	—	$	2,065,622
Multifamily	802,336		16,835		92,610		—		911,781
CRE:
Income producing	3,272,841		42,346		204,414		—		3,519,601
Construction	63,316		10,773		36,452		—		110,541
Land	87,432		14,677		38,222		—		140,331
C&I:
Commercial business	2,936,048		72,075		89,148		—		3,097,271
Trade finance	626,497		4,025		4,992		—		635,514
Consumer:
Student loans	405,950		—		69		—		406,019
Other consumer	261,936		435		6,157		—		268,528
Total	$	10,489,094	$	174,566	$	491,548	$	—	$	11,155,208

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
					(In thousands)
December 31, 2011
Residential:
Single-family	$	1,768,149	$	11,239	$	17,247	$	—	$	1,796,635
Multifamily	810,458		25,531		97,179		—		933,168
CRE:
Income producing	3,211,386		63,066		213,414		—		3,487,866
Construction	109,184		—		62,226		—		171,410
Land	125,534		7,954		39,601		—		173,089
C&I:
Commercial business	2,492,904		62,409		100,357		247		2,655,917
Trade finance	467,822		7,161		11,572		—		486,555
Consumer:
Student loans	305,880		188		257		—		306,325
Other consumer	273,692		—		3,769		—		277,461
Total	$	9,565,009	$	177,548	$	545,622	$	247	$	10,288,426

Age analysis of nonaccrual and past due non-covered loans and loans held for sale

	Accruing		Accruing		Total		Nonaccrual		Nonaccrual		Total
	Loans		Loans		Accruing		Loans Less		Loans		Nonaccrual
	30-59 Days		60-89 Days		Past Due		Than 90 Days		90 or More		Past Due		Current
	Past Due		Past Due		Loans		Past Due		Days Past Due		Loans		Loans		Total
	(In thousands)
September 30, 2012
Residential:
Single-family	$	2,998	$	7,266	$	10,264	$	1,010	$	7,742	$	8,752	$	2,046,606	$	2,065,622
Multifamily	6,005		—		6,005		11,440		11,594		23,034		882,742		911,781
CRE:
Income producing	14,150		6,239		20,389		3,478		7,587		11,065		3,488,147		3,519,601
Construction	—		—		—		—		21,800		21,800		88,741		110,541
Land	661		—		661		652		7,265		7,917		131,753		140,331
C&I:
Commercial business	1,465		2,382		3,847		3,537		11,983		15,520		3,077,904		3,097,271
Trade finance	—		84		84		704		1,919		2,623		632,807		635,514
Consumer:
Student loans	69		—		69		—		69		69		405,881		406,019
Other consumer	2,954		435		3,389		—		3,670		3,670		261,469		268,528
Loans held for sale	—		—		—		—		9,642		9,642		148,227		157,869
Total	$	28,302	$	16,406	$	44,708	$	20,821	$	83,271	$	104,092	$	11,164,277	11,313,077
Unearned fees, premiums and discounts, net															(15,185		)
Total recorded investment in non-covered loans and loans held for sale															$	11,297,892

	Accruing		Accruing		Total		Nonaccrual		Nonaccrual		Total
	Loans		Loans		Accruing		Loans Less		Loans		Nonaccrual
	30-59 Days		60-89 Days		Past Due		Than 90 Days		90 or More		Past Due		Current
	Past Due		Past Due		Loans		Past Due		Days Past Due		Loans		Loans		Total
	(In thousands)
December 31, 2011
Residential:
Single-family	$	6,991	$	1,198	$	8,189	$	—	$	3,569	$	3,569	$	1,784,877	$	1,796,635
Multifamily	6,366		745		7,111		6,889		11,306		18,195		907,862		933,168
CRE:
Income producing	18,179		1,549		19,728		6,885		25,690		32,575		3,435,563		3,487,866
Construction	—		—		—		26,482		14,688		41,170		130,240		171,410
Land	—		573		573		1,136		9,589		10,725		161,791		173,089
C&I:
Commercial business	342		2,957		3,299		4,394		6,843		11,237		2,641,381		2,655,917
Trade finance	—		—		—		—		—		—		486,555		486,555
Consumer:
Student loans	109		188		297		—		257		257		305,771		306,325
Other consumer	1,130		—		1,130		—		2,249		2,249		274,082		277,461
Loans held for sale	—		—		—		—		25,655		25,655		252,948		278,603
Total	$	33,117	$	7,210	$	40,327	$	45,786	$	99,846	$	145,632	$	10,381,070	10,567,029
Unearned fees, premiums and discounts, net															(16,762		)
Total recorded investment in non-covered loans and loans held for sale															$	10,550,267

Summary of interest income foregone on nonaccrual loans

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
	(In thousands)
Interest income that would have been recognized had nonaccrual loans performed in accordance with their original terms	$	1,497		$	2,360		$	4,994		$	7,923
Less: Interest income recognized on nonaccrual loans on a cash basis	(633		)	(756		)	(1,526		)	(2,267		)
Interest income foregone on nonaccrual loans	$	864		$	1,604		$	3,468		$	5,656

Loans modified as troubled debt restructurings

	Loans Modified as TDRs During the
	Three Months Ended September 30, 2012
		Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding
	of	Recorded		Recorded		Financial
	Contracts	Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family	6	$	1,849	$	1,413	$	533
Multifamily	3	$	6,146	$	6,083	$	2,098
CRE:
Income producing	3	$	4,869	$	4,257	$	608
Construction	—	$	—	$	—	$	—
Land	1	$	278	$	93	$	183
C&I:
Commercial business	1	$	461	$	458	$	—
Trade finance	2	$	2,510	$	1,004	$	1,506
Consumer:
Student loans	—	$	—	$	—	$	—
Other consumer	—	$	—	$	—	$	—

	Loans Modified as TDRs During the
	Nine Months Ended September 30, 2012
		Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding
	of	Recorded		Recorded		Financial
	Contracts	Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family	8	$	3,117	$	2,572	$	836
Multifamily	10	$	16,833	$	16,572	$	2,958
CRE:
Income producing	8	$	10,118	$	8,282	$	1,169
Construction	—	$	—	$	—	$	—
Land	2	$	710	$	163	$	260
C&I:
Commercial business	12	$	4,926	$	4,580	$	696
Trade finance	2	$	2,510	$	1,004	$	1,506
Consumer:
Student loans	—	$	—	$	—	$	—
Other consumer	1	$	108	$	108	$	—

(1)Includes subsequent payments after modification and reflects the balance as of September 30, 2012.

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

Troubled debt restructurings that subsequently defaulted

	Loans Modified as TDRs during the Prior 12
	Months, that Subsequently Defaulted During the
	Three Months Ended September 30, 2012
	Number of	Recorded
	Contracts	Investment
	(Dollars in thousands)
Residential:
Single-family	1	$	190
Multifamily	—	$	—
CRE:
Income producing	—	$	—
Construction	—	$	—
Land	—	$	—
C&I:
Commercial business	—	$	—
Trade finance	—	$	—
Consumer:
Student loans	—	$	—
Other consumer	—	$	—

	Loans Modified as TDRs during the Prior 12
	Months, that Subsequently Defaulted During the
	Nine Months Ended September 30, 2012
	Number of	Recorded
	Contracts	Investment (1)
	(Dollars in thousands)
Residential:
Single-family	1	$	190
Multifamily	—	$	—
CRE:
Income producing	1	$	2,916
Construction	—	$	—
Land	—	$	—
C&I:
Commercial business	2	$	537
Trade finance	—	$	—
Consumer:
Student loans	—	$	—
Other consumer	—	$	—

(1)Included in the nine months ended table is $3.5 million of recorded investments which have been charged-off or transferred to REO and are not included in the total loans receivable balance as of September 30, 2012.

Summary of impaired non-covered loans, including interest income recognized

											For the three months				For the nine months
			Recorded		Recorded						ended September 30, 2012				ended September 30, 2012
	Unpaid		Investment		Investment		Total				Average		Interest		Average		Interest
	Principal		With No		With		Recorded		Related		Recorded		Income		Recorded		Income
	Balance		Allowance		Allowance		Investment (2)		Allowance		Investment		Recognized (1)		Investment		Recognized (1)
							(In thousands)
As of and for the three and nine months ended September 30, 2012
Residential:
Single-family	$	17,810	$	12,947	$	2,767	$	15,714	$	810	$	16,360	$	29	$	17,295	$	35
Multifamily	48,343		32,095		12,629		44,724		2,891		45,466		139		46,544		347
CRE:
Income producing	51,097		41,444		6,619		48,063		2,399		48,533		80		49,733		172
Construction	32,099		21,800		—		21,800		—		23,140		146		24,625		438
Land	20,374		9,508		8,081		17,589		2,721		17,846		28		18,297		64
C&I:
Commercial business	30,439		17,278		2,983		20,261		1,379		23,155		192		27,311		451
Trade finance	4,429		2,923		—		2,923		—		3,676		15		4,264		15
Consumer:
Student loans	69		69		—		69		—		69		—		66		—
Other consumer	4,101		3,779		—		3,779		—		3,779		4		3,916		4
Total	$	208,761	$	141,843	$	33,079	$	174,922	$	10,200	$	182,024	$	633	$	192,051	$	1,526

											For the year
			Recorded		Recorded						ended December 31, 2011
	Unpaid		Investment		Investment		Total				Average		Interest
	Principal		With No		With		Recorded		Related		Recorded		Income
	Balance		Allowance		Allowance		Investment		Allowance		Investment		Recognized (1)
							(In thousands)
As of and for the year ended December 31, 2011
Residential:
Single-family	$	10,248	$	6,578	$	2,535	$	9,113	$	1,131	$	9,408	$	65
Multifamily	37,450		28,272		3,520		31,792		1,124		35,855		473
CRE:
Income producing	69,664		55,701		7,941		63,642		1,187		68,087		1,030
Construction	75,714		45,413		1,067		46,480		815		64,398		1,099
Land	40,615		25,806		8,692		34,498		3,949		36,002		341
C&I:
Commercial business	38,857		20,772		6,650		27,422		4,835		32,033		484
Trade finance	4,127		4,127		—		4,127		—		4,127		—
Consumer:
Student loans	257		257		—		257		—		257		—
Other consumer	2,249		2,249		—		2,249		—		2,251		27
Total	$	279,181	$	189,175	$	30,405	$	219,580	$	13,041	$	252,418	$	3,519

(1)Excludes interest from performing TDRs.

(2)Excludes $26.2 million of covered non-accrual loans accounted for under ASC 310-10, of which some loans have additional partial balances accounted for under ASC 310-30.

Detail of activity in allowance for loan losses, for both covered and non-covered loans, by portfolio segment

													Covered Loans
													Subject to
													Allowance for
	Residential			CRE			C&I			Consumer			Loan Losses (1)			Unallocated			Total
	(In thousands)
Three Months Ended September 30, 2012
Beginning balance	$	49,985		$	72,076		$	92,615		$	4,778		$	7,173		$	—		$	226,627
Provision for loan losses	3,552			(744		)	11,619			396			5,179			(1,502		)	18,500
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			—			1,502			1,502
Charge-offs	(2,767		)	(4,639		)	(6,586		)	(488		)	(6,475		)	—			(20,955		)
Recoveries	71			2,058			1,708			3			—			—			3,840
Net charge-offs	(2,696		)	(2,581		)	(4,878		)	(485		)	(6,475		)	—			(17,115		)
Ending balance	$	50,841		$	68,751		$	99,356		$	4,689		$	5,877		$	—		$	229,514
Ending balance allocated to:
Loans individually evaluated for impairment	$	3,701		$	5,120		$	1,379		$	—		$	—		$	—		$	10,200
Loans collectively evaluated for impairment	47,140			63,631			97,977			4,689			5,877			—			219,314
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			—			—
Ending balance	$	50,841		$	68,751		$	99,356		$	4,689		$	5,877		$	—		$	229,514

													Covered Loans
													Subject to
													Allowance for
	Residential			CRE			C&I			Consumer			Loan Losses (1)			Unallocated			Total
	(In thousands)
Nine Months Ended September 30, 2012
Beginning balance	$	52,180		$	66,457		$	87,020		$	4,219		$	6,647		$	—		$	216,523
Provision for loan losses	4,741			15,651			24,060			1,941			5,705			2			52,100
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			—			(2		)	(2		)
Charge-offs	(7,334		)	(20,217		)	(16,954		)	(1,579		)	(6,475		)	—			(52,559		)
Recoveries	1,254			6,860			5,230			108			—			—			13,452
Net charge-offs	(6,080		)	(13,357		)	(11,724		)	(1,471		)	(6,475		)	—			(39,107		)
Ending balance	$	50,841		$	68,751		$	99,356		$	4,689		$	5,877		$	—		$	229,514
Ending balance allocated to:
Loans individually evaluated for impairment	$	3,701		$	5,120		$	1,379		$	—		$	—		$	—		$	10,200
Loans collectively evaluated for impairment	47,140			63,631			97,977			4,689			5,877			—			219,314
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			—			—
Ending balance	$	50,841		$	68,751		$	99,356		$	4,689		$	5,877		$	—		$	229,514

													Covered Loans
													Subject to
													Allowance for
	Residential			CRE			C&I			Consumer			Loan Losses (1)		Unallocated			Total
	(In thousands)
Year Ended December 31, 2011
Beginning balance	$	49,491		$	117,752		$	59,737		$	3,428		$	4,225	$	—		$	234,633
Provision for loan losses	15,416			22,817			50,848			2,455			2,422		1,048			95,006
Allowance for unfunded loan commitments
and letters of credit	—			—			—			—			—		(1,048		)	(1,048		)
Charge-offs	(13,323		)	(78,803		)	(30,606		)	(1,959		)	—		—			(124,691		)
Recoveries	596			4,691			7,041			295			—		—			12,623
Net charge-offs	(12,727		)	(74,112		)	(23,565		)	(1,664		)	—		—			(112,068		)
Ending balance	$	52,180		$	66,457		$	87,020		$	4,219		$	6,647	$	—		$	216,523
Ending balance allocated to:
Loans individually evaluated for impairment	$	2,255		$	5,951		$	4,835		$	—		$	—	$	—		$	13,041
Loans collectively evaluated for impairment	49,925			60,506			82,185			4,219			6,647		—			203,482
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—		—			—
Ending balance	$	52,180		$	66,457		$	87,020		$	4,219		$	6,647	$	—		$	216,523

(1)This allowance is related to drawdowns on commitments that were in existence as of the acquisition dates of WFIB and UCB and, therefore, are covered under the shared-loss agreements with the FDIC. Allowance on these subsequent drawdowns is accounted for as part of the allowance for loan losses.

(2)The Company has elected to account for covered loans acquired in the FDIC-assisted acquisitions under ASC 310-30.

Recorded investment in total loans receivable by portfolio segment, disaggregated by impairment methodology

									Covered Loans
									Subject to
									Allowance for
	Residential		CRE		C&I		Consumer		Loan Losses		Total
	(In thousands)
September 30, 2012
Loans individually evaluated for impairment	$	60,438	$	87,452	$	23,184	$	3,779	$	—	$	174,853
Covered loans individually evaluated for impairment (2)	—		—		—		—		5,136		5,136
Loans collectively evaluated for impairment	2,916,965		3,683,021		3,709,601		670,768		461,801		11,442,156
Covered loans acquired with deteriorated credit quality (1)	1,067,858		1,888,037		288,291		55,884		—		3,300,070
Ending balance	$	4,045,261	$	5,658,510	$	4,021,076	$	730,431	$	466,937	$	14,922,215

									Covered Loans
									Subject to
									Allowance for
	Residential		CRE		C&I		Consumer		Loan Losses		Total
	(In thousands)
December 31, 2011
Loans individually evaluated for impairment	$	43,395	$	143,631	$	31,338	$	2,249	$	—	$	220,613
Loans collectively evaluated for impairment	2,686,408		3,688,734		3,111,135		581,536		583,804		10,651,617
Loans acquired with deteriorated credit quality (1)	1,331,615		2,322,062		413,479		67,124		—		4,134,280
Ending balance	$	4,061,418	$	6,154,427	$	3,555,952	$	650,909	$	583,804	$	15,006,510

(1)The Company has elected to account for all covered loans acquired in the FDIC-assisted acquisitions under ASC 310-30. The total principal balance is presented and excludes the purchase discount and any additional advances subsequent to acquisition date.

(2)Excludes $26.2 million of covered non-accrual loans accounted for under ASC 310-10, of which some loans have additional partial balances accounted for under ASC 310-30.