COVERED ASSETS AND FDIC INDEMNIFICATION ASSET (Tables)

12 Months Ended

Dec. 31, 2012

COVERED ASSETS AND FDIC INDEMNIFICATION ASSET

Carrying amounts and composition of covered loans

	December 31,
	2012			2011
	(In thousands)
Real estate loans:
Residential single-family	$	362,345		$	442,732
Residential multifamily	647,440			918,941
Commercial and industrial real estate	1,348,556			1,773,760
Construction and land	417,631			653,045
Total real estate loans	2,775,972			3,788,478
Other loans:
Commercial business	587,333			831,762
Other consumer	87,651			97,844
Total other loans	674,984			929,606
Total principal balance	3,450,956			4,718,084
Covered discount	(510,208		)	(788,295		)
Net valuation of loans	2,940,748			3,929,789
Allowance on covered loans	(5,153		)	(6,647		)
Total covered loans, net	$	2,935,595		$	3,923,142

Covered nonperforming assets, by credit quality indicators

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
December 31, 2012
Real estate loans:
Residential single-family	$	345,568	$	982	$	15,795	$	—	$	362,345
Residential multifamily	571,061		8,074		68,305		—		647,440
Commercial and industrial real estate	963,069		10,777		367,869		6,841		1,348,556
Construction and land	170,548		15,135		230,776		1,172		417,631
Total real estate loans	2,050,246		34,968		682,745		8,013		2,775,972
Other loans:
Commercial business	434,138		22,533		130,467		195		587,333
Other consumer	85,534		515		1,602		—		87,651
Total other loans	519,672		23,048		132,069		195		674,984
Total principal balance	$	2,569,918	$	58,016	$	814,814	$	8,208	$	3,450,956
			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

	December 31,		December 31,
	2012		2011
	(In thousands)
Covered nonaccrual loans(1) (2) (3)	$	204,310	$	194,506
Covered loans past due 90 days or more but not on nonaccrual	—		—
Total nonperforming loans	204,310		194,506
Other real estate owned covered, net	26,808		63,624
Total covered nonperforming assets	$	231,118	$	258,130

(1)	Covered nonaccrual loans include loans that meet the criteria for nonaccrual but have a yield accreted through interest income under ASC 310-30 and all losses on covered loans are 80% reimbursed by the FDIC.
(2)	Represents principal balance net of discount.
(3)	Includes $29.6 million and $18.9 million of loans at December 31, 2012 and 2011, respectively, accounted for under ASC 310-10, of which some loans have additional partial balances accounted for under ASC 310-30.

Changes in the accretable yield for the covered loans

	2012			2011
	(In thousands)
Balance at beginning of period	$	785,165		$	1,153,272
Additions	—			—
Accretion	(193,591		)	(208,887		)
Changes in expected cash flows	(34,588		)	(159,220		)
Balance at end of period	$	556,986		$	785,165

FDIC indemnification asset activity

	2012			2011
	(In thousands)
Balance at beginning of period	$	511,135		$	785,035
(Amortization) Accretion	(33,815		)	(59,929		)
Reductions(1)	(143,988		)	(210,365		)
Estimate of FDIC repayment (2)	(17,019		)	(3,606		)
Balance at end of period	$	316,313		$	511,135

(1)	Reductions relate to higher 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.