COVERED ASSETS AND FDIC INDEMNIFICATION ASSET (Tables)

3 Months Ended

Mar. 31, 2013

COVERED ASSETS AND FDIC INDEMNIFICATION ASSET

Carrying amounts and composition of covered loans

	March 31,			December 31,
	2013			2012
	(In thousands)
Real estate loans:
Residential single-family	$	341,946		$	362,345
Residential multifamily	587,409			647,440
Commercial and industrial real estate	1,279,779			1,348,556
Construction and land	385,109			417,631
Total real estate loans	2,594,243			2,775,972
Other loans:
Commercial business	539,481			587,333
Other consumer	83,617			87,651
Total other loans	623,098			674,984
Total principal balance	3,217,341			3,450,956
Covered discount	(454,962		)	(510,208		)
Net valuation of loans	2,762,379			2,940,748
Allowance on covered loans	(10,110		)	(5,153		)
Total covered loans, net	$	2,752,269		$	2,935,595

Covered nonperforming assets, by credit quality indicators

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
March 31, 2013
Real estate loans:
Residential single-family	$	325,397	$	903	$	15,646	$	—	$	341,946
Residential multifamily	526,181		6,262		54,966		—		587,409
Commercial and industrial real estate	934,102		9,343		329,607		6,727		1,279,779
Construction and land	156,013		14,792		213,132		1,172		385,109
Total real estate loans	1,941,693		31,300		613,351		7,899		2,594,243
Other loans:
Commercial business	401,191		24,793		113,302		195		539,481
Other consumer	81,797		279		1,541		—		83,617
Total other loans	482,988		25,072		114,843		195		623,098
Total principal balance	$	2,424,681	$	56,372	$	728,194	$	8,094	$	3,217,341

			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

Covered nonperforming assets

	March 31,		December 31,
	2013		2012
	(In thousands)
Covered nonaccrual loans(1) (2) (3)	$	207,683	$	204,310
Covered loans past due 90 days or more but not on nonaccrual	—		—
Total nonperforming loans	207,683		204,310
Other real estate owned covered, net	28,567		26,808
Total covered nonperforming assets	$	236,250	$	231,118

(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 $37.0 million and $29.6 million of loans at March 31, 2013 and December 31, 2012, 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

	Three Months Ended
	March 31,
	2013			2012
	(In thousands)
Balance at beginning of period	$	556,986		$	785,165
Additions	—			—
Accretion	(46,146		)	(25,606		)
Changes in expected cash flows	(7,364		)	(62,893		)
Balance at end of period	$	503,476		$	696,666

FDIC indemnification asset activity

	Three Months Ended
	March 31,
	2013			2012
	(In thousands)
Balance at beginning of period	$	316,313		$	511,135
(Amortization)	(8,686		)	(10,071		)
Reductions (1)	(23,235		)	(40,968		)
Estimate of FDIC repayment (2)	(7,558		)	(2,831		)
Balance at end of period	$	276,834		$	457,265

(1) Reductions relate to charge-offs, partial prepayments, loan payoffs and loan sales which result in a corresponding reduction of the indemnification asset.

(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.